State Has Projects List for Obama

20081215-NEWS--0001-NAT-CCI-CD_-- 12/12/2008 7:08 PM Page 1

WWW.CRAINSDETROIT.COM VOL. 24, NO. 50 DECEMBER 15 – 21, 2008 $2 A COPY; $59 A YEAR

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN State has projects list for Obama Great Lakes Recycling to add 2 new facilities gan of those kinds of projects, because of Roseville-based Great The tally: roads, bridges, schools, energy TRANSIT PLAN the budgetary con- Lakes Recycling plans a BY AMY LANE The plans are being drawn up in Congress. Backers say $10.5B in straints that we’ve grand opening Jan. 13 on a investment will bring CAPITOL CORRESPONDENT There are discussions indicating that as ear- had over the course $12 million, 50,000-square- $42B in development. ly as mid-January, Congress could pass at least of time, and also foot plant in Wayne Coun- LANSING — Being needy might be good. part of a spending plan for Obama to sign on Page 16. some of the bud- ty’s Huron Township. Also, That’s the hope of Michigan business and Jan. 20, his inauguration. getary decisions the company is looking to government officials, as they eye how a state Across Michigan, projects are being tallied made in Washington,” said Arnold Weinfeld, purchase another building with high unemployment, a struggling econo- that include roads and bridges, water and sew- director of public policy and federal affairs for in metro Detroit to expand my and challenged road systems can tap into er, school and university upgrades, and gov- the Michigan Municipal League. its computer and electron- pieces of a massive national infrastructure in- ernment energy and energy-efficiency mea- “I think that we can go in — and just like any ics recycling business. vestment and economic recovery plan pro- sures. Great Lakes plans to hire posed by President-elect Barack Obama. “There is a pent-up demand here in Michi- 40 workers for its plant in See Projects, Page 21 Huron Township and another 50 employees in 2009 to staff its electronics recycling unit expansion. “We are a growing business and are running over Renaissance capacity in Roseville,” said John Hawthorne, COO of MEGA takes up tax breaks Great Lakes. The 200,000- square-foot Roseville plant Fund closes 1st employs 200. 14 projects proposed The recycling company collects and processes round, makes more than 175,000 tons per totaling 2,450 jobs, year of paper, metal, plastic and glass. “We are seeing growth $921M in investment 1st investment in fiber and plastics, but metals have dropped be- BY DANIEL DUGGAN BY TOM HENDERSON cause of (the decline in in- AND BILL SHEA CRAIN’S DETROIT BUSINESS dustrial production),” CRAIN’S DETROIT BUSINESS Hawthorne said. The Detroit Renaissance Inc. Ven- In November, Great A startup company that will produce fuel-efficient ture Capital Fund closed last week Lakes signed a joint ven- hybrid buses — getting twice the mileage of hybrid on a first round of $40 million, and ture agreement with Geet cars — will ask for $11.3 million in state tax credits COURTESY OF SEVERSTAL its board voted Thursday night on International of Ontario to today to get the compa- Coils of steel are stored in the cold mill and other places its first investment of $5 million, form Geet Michigan. ny off the ground and at the steel mill in Dearborn, which will get upgrades with in Ann Arbor-based Arboretum Part- the help of MEGA grants. “The equipment is al- hire 539 employees. ners L.L.C. Arboretum, which focuses on ready delivered and we are Fisher Coachworks “Our plan is to have the bus in the certification looking for a building for L.L.C. will go before the health care and medical devices, is process by the close of 2009, and gear up production nearly finished raising its second the plant,” Hawthorne said. Michigan Economic after that’s complete,” Van Alstyne said. Founded in 1927, Great Growth Authority board fund of about $70 million, called Fisher is building a 40-foot stainless steel passen- Arboretum Ventures II. In Janu- Lakes also operates facili- requesting the tax cred- ger bus designed for city use, using Swiss-made bat- ties in Flint and North Hybrid bus. it for its effort to con- ary 2007, Ar- teries to drive motors for each wheel and a small boretum got the Tonawanda, N.Y. struct a $7 million plant in Livonia for its ultra-light- diesel engine to charge the batteries. — Jay Greene weight, fuel-efficient hybrid buses. first invest- A prototype built by Rochester Hills-based engi- ments from both The request is one of 14 put before the MEGA neering firm Autokinetics Inc. is undergoing road board today, recommended by the Michigan Economic the state’s 21st SBA lending drops 64% testing. Century Invest- Development Corp. Fisher requested $6 million from Michigan’s 21st Two months into the If completed, the 14 projects will create about 2,450 ment Fund and Century Jobs Fund but wasn’t among the 17 compa- the Venture agency’s fiscal year, the new jobs with a total investment of $921 million in nies awarded nearly $30 million in October. number of loans backed by private investment in the state. Michigan Fund. It The company recently completed a new round of got $7.5 million U.S. Small Business Adminis- Projects encompass the automotive sector in addi- private financing that offsets the immediate need for tration lending has dropped tion to the green energy, medical, food and beverage for the invest- Rizik the jobs fund money, Van Alstyne said, but the comment fund and what was believed 64 percent compared with industries. Five new real estate development pro- pany’s request for that money remains active. last year. jects also are proposed. to be a matching amount from the Another green startup on the MEGA agenda is VMF, although that amount was The SBA backed 71 loans The Fisher Coachworks project is the brainchild Global Wind Systems Inc. in November, said Richard of Greg Fisher, grandson of Fisher Body Co. co- not officially disclosed. Incorporated in September by Christopher Long “You have to say they are one of Temkin, director of the founder Albert Fisher, who along with his brothers and currently headquartered in a home on Lotus SBA’s Detroit district office. ran the car body company whose iconic coach sym- the top young venture capital Lake in Waterford Township, the company proposes firms in the country,” said Chris Declines were across the bol was stamped on General Motors Corp. vehicles for to create up to 356 jobs and invest $32.3 million over board, Temkin said, with a most of the 20th century. Rizik, the fund’s president and five years making wind energy turbines. CEO. “They’re got a great niche 69 percent drop in the The company is still in negotiations with owners The company would make 1.5-megawatt turbine of several buildings in Livonia, said John Van Al- See This Just In, Page 2 styne, Fisher’s vice president of marketing. See MEGA, Page 20 See Fund, Page 20

Small-business owners get free advice to help survive Is metro Detroit ready for

NEWSPAPER the slump, Page 11 digital TV? Page 3 20081215-NEWS--0002-NAT-CCI-CD_-- 12/12/2008 6:06 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS December 15, 2008

vestors planning on a 12 percent to has another 68 units in develop- Senate Bill 1281, sponsored by Ann Arbor-based Arbor Photon- THIS JUST IN 15 percent return, according to the ment around the nation with Sen. Cameron Brown, R-Fawn ics Inc., a University of Michigan company. The new company over 20 planned for Southeast River Township, would allow spin-off developing an optical ■ From Page 1 arranges loans through lenders Michigan. municipalities bordering anoth- fiber laser for manufacturing, and provides its own loans against The company also is opening er state or Canada to offer the received $250,000; Kalamazoo- agency’s 504 Loan Program, which a percentage of the incentive the two stores in Detroit during the abatements. But the municipal based Armune BioScience Inc., funds the purchase of fixed assets. state pays to qualified productions first quarter at 4501 Woodward league and urban mayors, in- which makes cancer diagnos- Throughout an otherwise grim upon completion and certification. Ave. and inside Children’s Hospital. cluding Detroit Mayor Kenneth tics, got $200,000; and Kalama- year for SBA-backed lending, 504 —Bill Shea Bob Fish, CEO of Biggby Coffee, Cockrel Jr. and Warren Mayor zoo-based Aursos Inc., which loans had fared relatively well. said 2008 was a record year for James Fouts, said in a Friday makes hormone treatments for Total dollars lent through No- Marriott at Renaissance the quick service coffee company, news release that the bill would osteoporosis, got $200,000. vember dropped 60 percent, from which saw its revenue increase make it harder for cities to at- —Tom Henderson $79.8 million in first two months of will have new manager by 37 percent, bringing sys- tract economic development, temwide revenue to $34 million. the last fiscal year to $31.8 million Marriott Hotels Inc. executive Bob and would push investment to DAC wins quality award this year. —Nathan Skid Farmery is giving up his multi-state rural, greenfield areas. The Detroit Athletic Club has Huntington Bank remains De- management post to take over as The bill passed the House Tax troit’s top SBA-backed lender. been awarded the 2008 Michigan general manager of the Detroit Mar- United Road buys Autolog Policy Committee last week and Quality Leadership Award. The federal government’s Trou- riott at the Renaissance Center. Bill is on the House floor. Romulus-based vehicle hauler Issued by the Michigan Quality bled Assets Relief Program and Ninivaggi, who has been general The municipal league has pro- United Road Services Inc. has an- Council, the award is based on Term Asset-Backed Securities manager for more than four years, posed an amendment that would Loan Facility hasn’t helped busi- nounced it paid $5 million for the criteria used for the Malcom will take over a property in Chica- allow only border communities ness owners much. Linden, N.J.-based Autolog Auto Baldridge National Quality go. that already have the necessary “They’ve got TARP, they’ve got Transport Inc. Award. Farmery, who has been with infrastructure for new employ- TALF, but in the end, nobody can Autolog had $10 million in rev- The award was based on visits Marriott for 36 years, was most re- ers to grant abatements. Brown, make a bank make a loan,” enue last year. United Road ships to the DAC by examiners, veri- cently the regional vice president however, sees that amendment Temkin said. vehicles for dealers, automakers, fying factors such as leadership of market management, oversee- as too much of a limitation. — Nancy Kaffer ing properties in nine states. eBay and individuals door to practices, strategic planning, —Amy Lane “He lives in the area and he de- door nationwide. customer focus and process cided that he didn’t want to travel — Bill Shea management. S3 sets up filmmaking fund anymore,” Ninivaggi said of Biotechs land state funds It is the first time such an Troy-based S3 Entertainment Farmery. Cities object to tax break bill Ann Arbor Spark has an- award has been issued to an or- Group L.L.C., formed earlier this — Daniel Duggan nounced three more recipients ganization in the hospitality in- year to provide equipment rental, The Michigan Municipal League from the state’s Pre-Seed Capi- dustry. financial consulting, travel plan- Biggby adds 3 area outlets and urban mayors are raising ob- tal Fund, part of the 21st Centu- — Daniel Duggan jections to a bill, headed for leg- ning and a wide range of services East Lansing-based Biggby Cof- ry Jobs Fund. islative approval, that would al- for filmmakers, has set up a $10 fee is adding three locations in low certain communities to offer million fund to up-front finance metro Detroit. CORRECTION movies under Michigan’s 42 per- The new franchise locations personal property tax abate- cent film incentive. will open today and are located in ments now allowed only for ur- Ⅲ A story on Page 22 of the Dec. 8 issue incorrectly reported that The new S3 subsidiary, Michigan Clinton Township, Utica and ban communities considered eco- Tooles Contracting Group L.L.C. did preconstruction work on MotorCity Film Finance, is made up of local in- Shelby Township. Biggby also nomically distressed. Casino. The company did the preconstruction work for @Water (Atwater) Lofts L.L.C., a project since suspended. hap is ... your Michigan-based partner

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December 15, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Alliance to enlist young leaders INDEX Not hindered: Despite that don’t want to engage with their FDA warning, Caraco Millennial congress: Empower the next generation entire citizenship,” she said. “It’s profits, sales on the great that ... Southeast Michigan’s upswing. Page 4. BY SHERRI BEGIN WELCH tainability and policies that help en- the region’s capac- established leadership is wanting to It’s all in a name: Want CRAIN’S DETROIT BUSINESS trepreneurs and the environment. ity to collaborate reach out to the next generation of to change a business The municipal members extend will build, she leaders.” name? Choose carefully. A regional effort to engage the mil- Page 12. from Farmington Hills to Sterling said. The congress hopes by spring to lennial generation and get Southeast Heights to Hamtramck. The Detroit Re- begin identifying areas where local Auto suppliers: Many at Michigan moving forward on eco- the end of the rope, and The alliance and the local commu- gional Chamber’s action could make a difference, tap- nomic, social and environmental is- first quarter looks worse. nities plan Tuesday to hold their young profession- ping research and the work of orga- sues is under way. Page 17. first public forum to discuss the best als group, Fusion, nizations such as One D, she said. Members of the millennial genera- Endowment funds: way for communities to nominate a which serves as For example, the congress might tion are generally considered to be Losses have yet to hit young leader to serve as a delegate. the primary advo- set a goal of greening the region, and state colleges’ operating those born between 1977 and 2002. Bringing in millennials makes the cate on behalf of the municipalities might decide the budgets. Page 18. The Michigan Suburbs Alliance has Carney effort “inherently future-focused,” young profession- best way to do that is to reduce mu- Holiday savings: For convened the Millennial Mayors said Sharon Carney, 24, special pro- als in the region, is assisting the nicipal consumption by 10 percent in some retailers, it’s Congress, a group of local mayors or ject director for the alliance. Michigan Suburbs Alliance in five years, or they might change zon- already the season for township supervisors, and soon one “What we’re hoping is that by em- rounding up candidates to serve as deep discounts. ing ordinances to promote LEED Page 19. millennial delegate, age 18 to early powering the next generation of delegates on the new congress, said construction (Leadership in Energy 30, from each municipality. leaders to be involved in the discus- director Christianne Sims. and Environment), Carney said. So far, 25 cities and townships in sions and decisions shaping the re- It’s important to forge relation- Tuesday’s forum is free and runs Wayne, Oakland and Macomb coun- gion, the actions of city governments ships between young professionals from 6-9 p.m. at the Renaissance Ann Arbor Spark ...... 10, 20 ties have agreed to participate in the will be better at creating the places and current leaders in order to make Club at the Renaissance Center. Arboretum Partners ...... 1 effort, which will look for ways each and opportunities this young genera- sure there’s a pipeline of new leaders To reserve a seat, e-mail toni@sub- Ardesta ...... 20 Autokinetics...... 1 can address issues facing the region, tion finds attractive,” she said. and that the voices of the next gener- urbsalliance.org. such as racism or poverty, or take Simultaneously, by including Automation Alley ...... 20 ation are being heard, she said. Sherri Begin Welch: (313) 446-1694, Blue Cross Blue Shield ...... 20 advantage of opportunities like sus- cities across Southeast Michigan, “There are so many communities [email protected] Caraco Pharmaceutical ...... 4 Chrysler ...... 20 Darbonné Portraits ...... 12 Detroit Dept. of Transp...... 16 Detroit Micro-Enterprise Fund . . . . 11 Detroit Regional Chamber ...... 9 Detroit Renaissance Fund...... 1 Detroit Water and Sewerage Dept. . 21 Is Detroit all set for digital TV? Don Thomas Sporthaus ...... 19 DTE Energy...... 20 His sales are worldwide, with De- Faurecia ...... 20 Sales of converter boxes stay strong troit among the strongest. Feather Your Nest...... 20 Fisher Body ...... 1 As of Sept. 1, nearly 78 percent of Fisher Coachworks ...... 1 BY BILL SHEA based online electronics retailer Sol- households in the Detroit market 78 FKA Distributing...... 20 CRAIN’S DETROIT BUSINESS id Signal Inc., has watched converter were completely ready for the digital General Motors ...... 1 box sales become 40 percent of his conversion, according to a national percent Global Wind Systems ...... 1 Efforts begin this week to let the business this year and expects the study by New York City-based Households in Detroit Golden Rectangle...... 20 public know if their old televisions tests to spike sales. The Nielsen Co., which tracks tele- market ready for digital Greater Detroit Hospital ...... 20 will go dark when over-the-air So far, he’s sold 60,000 boxes for a vision ratings and other broadcast conversion Guys N Gals ...... 19 broadcasts end in February, and that Henry Ford Health System...... 1 total of about $3 million. information. Henry Ford Hospital ...... 1 has at least one Michigan retailer an- He estimates his company is sell- Nearly 14 percent of ticipating a boost in business. Huntington Bank ...... 20 ing 3,000 to 4,000 boxes weekly, and metro Detroit households JGA ...... 19 A federally mandated Feb. 17 dead- 14 he predicts that will peak next were partially unready Kongsberg Automotive ...... 20 line ends current analog broadcasts month. and 8.4 percent (114,000 percent Maple Shoppes ...... 20 in favor of digital, meaning televi- Masco Corp...... 20 “There will be lots of people who households) were com- Households partially sions not hooked to cable or satellite pletely unready for the Mich. Assoc. of Broadcasters . . . . . 21 get into the basement and realize the unready Mich. Dept. of Transp...... 21 services, or without a digital con- conversion, according to TV doesn’t work down there,” he Mich. Econ. Dev. Corp...... 1 verter box, won’t pick up any pro- the study. gramming. said. He expects converter box sales, Mich. Econ. Growth Authority ...... 1 many of which are bought in con- Those percentages nearly 8.4 Mich. Municipal League ...... 1 Detroit television stations on matched the national averages: Mich. Suburbs Alliance...... 1 junction with $40 government Tuesday will begin airing weekly About 80.5 percent of U.S. house- Novixus ...... 20 coupons, to continue strong sales percent tests that will let television owners holds were completely ready at the Northern United Brewing ...... 20 through next summer. know if their sets need a converter time of the report, and 8.4 percent Households completely unready Small Business Detroit ...... 11 box. “We’re buried in the number of or- Origen Financial ...... 4 Jerry Chapman, owner of Novi- ders,” he said. See Digital TV, Page 21 OU Incubator ...... 10 Scripps Park Assoc...... 20 SEMCOG ...... 16 Severstal N. America ...... 20 Solid Signal ...... 1 TechTown ...... 10 Nielson Co...... 1 TriMas ...... 20 U.S. Conf. of Mayors...... 21 Henry Ford files to transfer 40 beds from Cottage Valenti Capital ...... 20 Wayne State Univ...... 20 Western Creative ...... 12 BY JAY GREENE hospital. its downtown hospital is that in Southeast Michigan. Whyco Finishing ...... 20 CRAIN’S DETROIT BUSINESS Cottage Hospital March it will formally open Henry “What a number of health systems Windward Associates ...... 20 operates 80 beds Ford West Bloomfield Hospital. Henry are doing is right-sizing the number ZF Group ...... 20 Despite the economic slowdown, with a 46 percent Ford plans to transfer 250 of its li- of beds they operate at different hos- Henry Ford Hospital in Detroit is burst- occupancy rate. It censed beds to the West Bloomfield pitals,” Horvath said. “Down the ing at the seams and needs another has 153 licensed facility. road we might look at facilities that 40 licensed beds to meet patient de- beds. Sometime next year, Henry Ford, staff a smaller portion of licensed mands, said CEO Nancy Schlichting Henry Ford ac- which is licensed for 903 beds, will beds (and remove them).” BANKRUPTCIES ...... 20 of Henry Ford Health System. quired Cottage drop to 653 beds, and then add 40 Horvath said, however, the state BUSINESS DIARY ...... 15 “We need the beds at Henry Ford,” Hospital in Octo- beds from Cottage to increase its li- understands hospitals like to keep CALENDAR ...... 15 Schlichting said. ber 2007 from Bon censed bed count to 693. Hospitals unused licensed beds in reserve to CLASSIFIED ADS...... 16 Schlichting KEITH CRAIN ...... 6 Occupancy rates for Henry Ford’s Secours Health Sys- generally staff fewer beds than they use during flu season. flagship hospital have been running LETTERS ...... 6 tem, a Marriottsville, Md.-based Ro- have licensed and occupancy rates From 2002 to 2007, admissions at MARY KRAMER...... 7 above 84 percent, which is consid- man Catholic system, with the inten- are based on staffed beds. Henry Ford increased 28 percent to OPINION ...... 6 ered full capacity, she said. tion of transferring beds downtown, Larry Horvath, manager of the 41,000 annually from 32,000. Hospital PEOPLE ...... 14 Last month, Henry Ford submit- Schlichting said. Henry Ford had state’s certificate-of-need program officials said admissions in 2008 are RUMBLINGS...... 22 ted a request with the state to trans- owned a 30 percent interest in the with the Department of Community projected to increase 3 percent to SMALL BIZ SOLUTIONS . . . 12 fer 40 beds from Henry Ford Cottage hospital since 1998. Health, said the state has been en- 42,200. WEEK IN REVIEW ...... 22 Hospital in Grosse Pointe Farms to Schlichting said another reason couraging hospitals to give up un- increase capacity at its downtown Henry Ford needs additional beds at used beds because of the glut in See Henry Ford, Page 20 20081215-NEWS--0004-NAT-CCI-CD_-- 12/12/2008 5:13 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS December 15, 2008 It’s Time To Get Back To Business Ask About a FREE TAKING STOCK Casual days, casual thinking, NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Dress for Success & casual policies are past. It’s Seminar time to Get Back To Business. Baron’s can get you and your Despite FDA warning, Caraco office outfitted with Business Appropriate Suits, Sportcoats & sophisticated sportswear at LEGITIMATE WHOLESALE profits, sales on the upswing prices. Improve your firm’s

presentation today and get back BY JAY GREENE in 2007 and record profits of $35.4 cited the following problems, some to business. Baron’s is open to CRAIN’S DETROIT BUSINESS million in 2008, the company said. of which include repeat violations oﬃces of 6 or more. In statements, CEO Daniel dated to 2005: In June, Caraco Pharmaceutical Movens attributed much of the Ⅲ The inspection revealed sig- Call Mike today at Laboratories Ltd. (AMEX: CPD), a gains in 2008 and 2009 to signing a nificant deviations from current (248) 539-0525. Detroit-based generic-drug maker, three-year distribution and sale (good manufacturing practice) reg- received a notice from the Food and agreement in fiscal 2008 with Sun ulations for finished pharmaceuti- Drug Administration that cited quali- Pharmaceutical Industries. cals. ty control problems with some of Sun owns 72 percent of Caraco, Ⅲ Failure to investigate the con- Caraco’s drugs and processes at its which is a subsidiary of the Mum- tamination of Tramadol HCl, 50 Detroit manufacturing plant. bai, India-based specialty firm. mg tablets, and Metoprolol Tartrat Since the FDA inspected Cara- Sun and Caraco have niche thera- USP, 50 mg tablets, in February 0SDIBSE-BLF3Et'BSNJOHUPO)JMMTt.*t co’s plant at 1150 Elijah McCoy py areas of psychiatry, neurology, 2008. Drive from May 1 to June 11 and is- cardiology, diabetology, gastroen- Ⅲ Failure to fully investigate a sued the notice, Caraco’s stock has terology and orthopedics. shortage of Citalopram HBr raw lost four-fifths of its market value. In response to the FDA’s inspec- material in September 2007. Caraco’s stock price dropped to tion, Caraco officials said correc- Ⅲ Failure to fully investigate $3.30 Wednesday, down from tive actions were substantially metal scrapings and foreign mat- $16.99 on May 1 and $14.98 on June completed in July. ter in compressed Metformin HCl 11, when the FDA completed its in- However, on Oct. 31, the FDA is- tablets, 1,000 mg, in February 2008. spection. sued a formal warning letter to This violation also occurred dur- We go to the ends The company’s stock closed at Caraco and outlined, for the first ing 2005, 2006 and March 2008 in- $6.08 on Friday. time, the scope of the problems. spections earth The stock drop this year fol- “You should take prompt action Ⅲ Failure to maintain equip- of the for lowed a steady increase in Cara- to correct deficiencies at your fa- ment at appropriate intervals to co’s stock prices to a high of $18.50 cility,” the FDA’s warning letter prevent malfunctions or contami- on March 31, 2008, from $7.30 on said. “Failure to promptly correct nation that would alter the safety, our clients Jan. 1, 2005. these violations may result in legal identity, strength, quality or puri- But the drop in price, related to action without further notice, in- ty of the drug product in February the FDA inspection and overall cluding, without limitation, 2008. This violation also occurred market declines, hasn’t much af- seizure and injunction.” in 2005. Jones Lang LaSalle merged with The Staubach Company fected Caraco’s sales and profits Caraco responded Nov. 24 to the The FDA has the authority to because that's how they view the world, too. this year. FDA and said it has taken addi- withhold approval of pending ap- Net income rose 36 percent to tional corrective actions. plications listing the Detroit plant $17.9 million for the 2009 fiscal “The company is committed to as the manufacturer until the No matter where you have real estate needs, we have year’s first six months, ending working cooperatively and expedi- agency considers the company’s Sept. 30, compared with $13.1 mil- tiously with the FDA to resolve the response satisfactory. expert professionals on the ground — who work as a lion for the same year-ago period. matters indicated in its letter,” the Caraco said it has 19 pending team to go the extra mile. Diluted net income per common company said in a statement. products. share increased to 44 cents from 34 Movens declined further com- Caraco and Sun have 53 prod- cents during that period. ment until the FDA accepts the ucts in 115 strengths, and 27 of the For information, contact: In October, Caraco said it expects company’s corrective-action plan. products are in the top three of to achieve 25 percent growth in Founded in 1984, Caraco em- generic market share, Caraco said. sales for fiscal 2009, ending March ploys 600. Jay Greene: (313) 446-0325, +1 313 967 4114 30, compared with 2008. The compa- In its warning letter, the FDA [email protected] ny reported total revenue of $350.37 million in fiscal 2008. After losing $4.3 million in 2005 www.us.joneslanglasalle.com and $10.4 million in 2006, Caraco posted net income of $26.9 million STREET TALK THIS WEEK’S STOCK TOTALS: 38 GAINERS, 26 LOSERS, 8 UNCHANGED

CDB’S TOP PERFORMERS 12/12 12/8 PERCENT What in the World? Origen Financial voluntarily CLOSE CLOSE CHANGE Caraco Pharmaceutical Ltd 6.08 3.33 82.58 Today, she plays with a beach delisting common stock Ramco-Gershenson Properties Trust 6.40 4.51 41.91 ball. Tomorrow, the weight of the Perceptron Inc 3.70 3.01 22.92 world will be on her shoulders and Southfield-based Origen Financial TRW Automotive Holdings Corp 3.60 2.98 20.81 the shoulders of all our children. Inc. (Nasdaq: ORGN) a real estate Domino's Pizza Inc 4.53 3.78 19.84 What sort of world will it be? investment trust that manages in- FNBH Bancorp Inc 4.85 4.25 14.12 vestments in securitized manufac- There are men who are committed Agree Realty Corp 16.02 14.14 13.30 tured housing loan portfolios, said Ford Motor Co 3.04 2.72 11.77 to building a world that values the Tuesday that it is voluntarily Universal Truckload Services Inc 18.60 16.74 11.11 worth of the individual, that will delisting its common stock from First Mercury Financial Corp 12.86 11.63 10.58 allow every child to reach his/her the Nasdaq market and will cease CDB’S LOW PERFORMERS 12/12 12/8 PERCENT potential. There are men who are filing reports with the U.S. Securi- CLOSE CLOSE CHANGE committed to building a world in ties and Exchange Commission. Oxford Bank Corp/MI 7.00 8.50 -17.65 which morality, character and The company, hammered in the Eagle Capital Growth Fund Inc 4.00 4.75 -15.79 traditional values matter. fallout of the subprime mortgage Federal Mogul Corp 4.10 4.58 -10.48 meltdown, said that since it has Pulte Homes Inc 10.77 11.86 -9.19 Who are these men? fewer than 300 shareholders and is TechTeam Global Inc 3.53 3.88 -9.02 They are Scottish Rite Masons. so thinly traded, it made sense to Energy Conversion Devices Inc 22.59 24.73 -8.65 save the costs associated with be- ArvinMeritor Inc 3.59 3.88 -7.47 ing listed. BorgWarner Inc 21.14 22.53 -6.17 Origen said it would continue to Scottish Rite Masonry Rockwell Medical Technologies Inc 3.38 3.58 -5.59 file unaudited quarterly and annu- General Motors Corp 3.94 4.08 -3.43 Making a Real Difference! al earnings reports and expected that its stock will be listed on the Source: Bloomberg News. From a list of publicly owned companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading Pink Sheets. at less than $5 are not included. www.32ndDegreeMasons.org 877.320.6432 — Tom Henderson DBpageAD.qxd 12/4/2008 4:39 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS December 15, 2008 OPINION The UAW needs to rethink its message et’s get this right: Senate Republicans who blocked the auto loans last week did so because the United Auto L Workers refused to set a date in 2009 for achieving “pay parity” with autoworkers in foreign-owned plants operating in mostly Southern states. We always thought it was Democrats who liked to play around with setting wage levels among private-sector employers. Historians, economists and social and political scientists will have a field day with the saga of the Detroit 3’s efforts to save its industry and literally millions of jobs tied to it. If you use the yardstick of the Wall Street bailout, Detroit was treated shabbily, in part to punish auto companies for long-ago sins. But Republicans were clearly hoping to also drive a stake in the heart of the UAW. Was this political payback or an anti-union bias or both? Whatever it was, organized labor has to think hard about its message in a culture that has historically celebrated individual initiative. Even a labor-friendly Obama administration may not change that. MSU gains prestige with lab LETTERS Michigan needed some good news last week, and the U.S. Department of Energy gave it a nuclear-powered dose. Save state horse racing jobs Michigan State University will host the federally funded Editor: $550 million nuclear physics research laboratory, known as Crain’s Detroit Business Make ‘medical homes’ fair How ironic! At a time when en- the Facility for Rare Isotope Beams. welcomes letters to the editor. tire industries are fleeing the MSU had been in hot contention for the facility with the All letters will be considered for Editor: state, a once-prosperous and pro- federally owned Argonne National Laboratory near Chicago. publication, provided they are I am pleased to see Crain’s move lific one is on life support because signed and do not defame the discussion on patient-centered Maybe Michigan owes disgraced Illinois Gov. Rod Blagoje- the state of Michigan refuses to individuals or organizations. medical homes into the main- vich a favor. save it. The horse racing industry Letters may be edited for length stream business community. On merits alone, the word had been that MSU’s bid was in Michigan during friendlier and clarity. (“‘Medical homes’ spread,” Dec. 1.) times was responsible for more more competitive. But would Argonne benefit from the aura of Write: Editor, Crain’s Detroit I applaud the primary-care than 50,000 jobs. Today the best Business, 1155 Gratiot Ave., physicians in Michigan who are President-elect Barack Obama, who based his campaign in his guess is between 13,000-15,000, a Detroit, MI 48207-2997. embracing the model because they adopted hometown of Chicago? The unspoken fear among loss of more than 70 percent of its E-mail: [email protected] understand its power to reinvent workforce. MSU boosters is the Illinois congressional delegation would and strengthen primary care. Sure, economic times are par- pull strings to influence the site decision. As forward-thinking medical tially responsible. However, the here. Pinnacle Race Course could Then, just two days after the Illinois governor was arrested schools and residency programs vast majority of states with racing become a great attraction for out- on corruption charges, the Department of Energy made its de- industries have passed legislation of-state owners and trainers if he prepare our future primary-care cision known: Those nuclear beams will be bathed in Spartan that has revitalized them. A few was to get the necessary help in physicians to adapt to this new green and white. years back, slot machines (raci- Lansing (“Betting at Pinnacle eas- model of patient-centered care, we are hopeful that the majority of This is a big win for MSU President Lou Anna Simon. nos) were placed on the ballot, but es blow to state horse racing,” Dec. the proposal was soundly defeated. 1). primary-care physicians already MSU has projected that as much as $1 billion in economic Our casinos saw them as major A once proud and successful in- in practice will immerse them- activity can come from the federal award, including 400 new competition and spent enough to dustry is on life support. Isn’t it selves in the medical home model scientific and technical jobs. The actual research is expected make sure the proposal didn’t time we woke up and started sav- to keep the momentum going. to cross over into advances in health care, national defense pass. ing some of the jobs we’re steadily The movement towards adop- tion of a patient-centered medical and the environment. Kudos to Jerry Campbell, who losing? despite the odds, was compelled to home is not only at the physician All that’s true. But the prestige of hosting the lab? Price- Howard Perlman try and save thoroughbred racing Franklin See Letters, Page 7 less.

KEITH CRAIN: This could be the start of a new tradition For regular readers of this col- part of the fruitcake tra- the worldwide demand. fruitcakes is that they are com- be my chance. As the nation faces a umn, they are well aware of the dition: The speed with Today, we are facing pletely edible even after decades of very difficult economic time, it may tradition of the magical fruitcake. which one can receive, very hard times. It has re-gifting. I’ve been told that a be time to realize the nutritional Only it’s really not magical. repackage and then send been brought to my at- fruitcake has the same shelf life as value of the famous fruitcake. For those of you who are not off to a new and happy tention that this year, a good red wine. So there would ap- Perhaps the faux fruitcake busi- aware of this phenomenon, there recipient. The entire folks have actually been pear to be no risk involved in even ness will crank up production as are only seven fruitcakes in the process is literally sec- seen eating these fruit- consuming fruit cakes that might the automotive industry ramps United States. And as well all know, onds. It’s almost like the cakes. be pre-war. down on theirs. these fruitcakes are not for eating old “hot potato” game When I first heard We may be starting a new tradi- I am sure that when the econo- or, God forbid, digesting. Fruit- from yesteryear, when the news, I thought it tion of actually giving fruit cakes my recovers, we will once again cakes are the symbol of giving and no one wanted to get disturbing. But, consid- that will be consumed by the recipi- see the rightful tradition return of receiving during the holidays. caught with the potato. ering the mood and the ents. receiving and re-gifting the fa- A fruitcake is re-gifted, a phrase I It happens so fast that economy, it’s perfectly Although I have received many mous fruitcake. am not completely comfortable only seven fruitcakes acceptable. fruit cakes over the years, I have yet But don’t send one to the U.S. with. But that’s the most exciting are needed to completely satisfy One of the very nice attributes of to savor their taste. Now may well Senator from Alabama. 20081215-NEWS--0007-NAT-CCI-CD_-- 12/12/2008 6:18 PM Page 1

December 15, 2008 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Have a story Michigan should tell? Pitch it As this column went to press last sory board, I challenge from their official me- ciety of Detroit held a job fair in state can help make Michigan the Friday, the bridge loans for the auto our readers to imagine dia Web page. October, 1,200 engineers showed “engineering commons” for the industry were still in doubt. they were hosting an au- So what could the up to interview for about 1,000 en- world. My crystal ball is in rough shape, tomotive journalist in stories be? gineering and technical jobs. “Successful companies like Ap- so I left that crisis to move on to an- Detroit for a day. In ad- Well, here are a cou- And that’s another story angle: ple don’t do a whole lot of manufac- other nightmare: What happens dition to the Big Story of ple of ideas. the strength of Michigan’s engi- turing, but they come up with the when 7,000 automotive journalists the Detroit 3, what other First, call us resil- neering base. products and ideas,” he said last descend on our city next month to business or economic ient. What other region “It’s second to none,” says week. “That’s the future, long-term, cover the North American Interna- story or trend should could hemorrhage Satish Udpa, dean of the college of for Michigan.” tional Auto Show? How many will our region tell? nearly 500,000 jobs in engineering at Michigan State Meanwhile, let’s think about the have been assigned to write the do- Send it to eight years – 315,000 of University and my colleague on short term. mestic auto industry’s obituary? [email protected]. them in manufacturing the ESD board. “Count the number The newly formed DNews media We’ll pick the best “sto- alone – and today have of engineers on a per capita basis, Mary Kramer is publisher of relations office, led by veteran au- ry pitches” and post a jobless rate under 10 we have the best numbers in the Crain's Detroit Business. Catch her tomotive journalist Marge Sorge, them online as the jour- percent? The dark days country and probably the world. take on business news at 6:50 a.m. will target a few reporters to pitch nalists arrive for the North Ameri- of the 1970s had state jobless rates This is truly an engineering state.” Mondays on the Paul W. Smith show alternative stories about our re- can International Auto Show. nearly double that. We do have Udpa thinks the strength of the on WJR AM 760 and in her blog at gion. Maybe we can even talk the auto jobs, even engineering and techni- engineering talent turned out by www.crainsdetroit.com/kramer. As a member of the DNews advi- show folks into linking to them cal jobs. When the Engineering So- MSU and other universities in the E-mail her at [email protected].

LETTERS CONTINUED ■ From Page 6 level, though. Medicaid, Medicare and private insurers such as Blue Cross and Blue Shield of Michigan are actively redesigning their reimbursement models to support the transformation necessary for the creation of a true patient-centered medical home. Joy to the road. That being said, there must be basic trust that reimbursement policies under the model will ulti- mately be fair and reflective of additional investment or effort ex- pended by a physician and the physician’s practice team. Let’s remember that it’s called the patient-centered medical home and not the physician reimbursement-centered medical home. Ewa Matuszewski CEO, Medical Network One Rochester Keep bailout money here Editor: If U.S. automakers are to be given more bailout money, we must be assured that jobs will not be sent abroad, as is the case with the Ford production plant in Brazil. One billion dollars of bailout money has already been earmarked for a GM production facility in that country. We need to resuscitate our economy, not stimulate Brazil’s. Some- thing must be done to reverse the flood of outsourcing jobs and the resultant loss of employment and tax revenue. Paul Jaehnert The Mercedes-Benz Winter Event is here. Hurry in today. Vadnais Heights, Minn. Support local biz groups This year, holiday cheer comes in all sorts of shapes and sizes. Like the remarkably efficient C 300 Sport Sedan with 26 mpg highway fuel economy; the versatile ML 350 with a 5-star crash safety rating†; or the powerfully luxurious E 350 Sport Sedan, Highest Ranked Editor: Midsize Premium Car in Initial Quality, two years in a row (tied in 2008) by J.D. Power and Associates. With options like these, there’s I was delighted to read Ken MBUSA.com/WinterEvent Rogers’ Nov. 24 “Other Voices” more than enough joy to go around. See your authorized Mercedes-Benz dealer for a test drive today. about the value to small businesses of membership in groups. His examples are among the SPECIAL OFFERS* most powerful groups in the state! AVAILABLE ON SELECT I remind Ken and others that we 2009 C, E AND M-CLASS MODELS also must remember the signifi- cance of local business organiza- At your local authorized Mercedes-Benz dealer tions, like chambers of commerce, who are the voice for retail businesses and entrepreneurs, as well as major employers. While major organizations are Special Rates Available to Chrysler Employees important regionally and statewide, Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester it’s crucial to support local business advocacy organizations to ensure 36600 North Woodward Ave. 39500 Grand River Ave. 595 South Rochester Rd. we all work together in every com- (248) 644-8400 (248) 426-9600 (248) 652-3800 munity to keep the doors of business open. Mercedes-Benz E-Class received the lowest number of problems per 100 vehicles among midsize premium cars in the proprietary J.D. Power and Associates 2007–2008 Initial Quality Study,SM tied in 2008. 2008 study based on responses from 81,530 new-vehicle owners, measuring 344 models and measures opinions after 90 days of ownership. Proprietary study results are based on experiences and perceptions of owners surveyed in February–April 2008. Your experiences may vary. Ann Corwell Visit jdpower.com. *Qualified customers only. Available only at participating authorized Mercedes-Benz dealers through Mercedes-Benz Financial. Must take delivery of vehicle by January 2, 2009. Subject to credit approval by lender. See your Executive Director authorized Mercedes-Benz dealer for complete details. †Government star ratings are part of the National Highway Traffic Safety Administration’s (NHTSA’s) New Car Assessment Program (www.safercar.gov). C 300 Sport Sedan EPA estimate of West Bloomfield Chamber of Commerce 18 mpg city/26 mpg highway. Please always wear your seat belt, drive safely and obey speed limits. ©2008 Mercedes-Benz USA, LLC For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com/WinterEvent. DBpageAD.qxd 12/4/2008 12:29 PM Page 1

Wherever in the world you compete, Michigan can give you the Upper Hand. 465 IN A SERIES OF THOUSANDS

An innovative company in Western Michigan is bringing wind energy to new places: the roof of your home, to be speciﬁc.

On the west coast of Michigan near Grand Rapids, a plastic injection-molding company has transformed itself from a supplier to the furniture and automotive industries into an alternative energy pioneer. Cascade Engineering has partnered with a Scottish company to introduce the Swift Wind Turbine to the North American market. This unique turbine is designed for use on homes and small businesses as a source of renewable energy. It’s an innovative idea from a company with a long-standing commitment to sustainable business practices.

Throughout Michigan, companies are discovering the value in capitalizing on the trend toward alternative energy technology. Now is the time to contact the Michigan Economic Development CorporationSM to learn how Michigan’s incentives and expertise can give you the Upper Hand. To learn more, visit MichiganAdvantage.org today.

Fred P. Keller Chairman and CEO Cascade Engineering, Inc. MichiganAdvantage.org 20081215-NEWS--0009-NAT-CCI-CD_-- 12/12/2008 11:40 AM Page 1

December 15, 2008 CRAIN’S DETROIT BUSINESS Page 9

A CONVERSATION WITH Expanded small-biz coverage online Visit www.crainsdetroit.com/ smalltalk for updated small business news, video reports and a Sandy directory of small-business Baruah, resources. Small Business Administration small business

Sandy Baruah is the acting administrator of the U.S. Small Business Administration. He spoke with Crain’s reporter Nancy Kaffer about the small- business climate in Michigan. The Detroit Regional Chamber Help for the asking will host Baruah at a free small- business town hall meeting 7:30-9 a.m. Wednesday at The Westin Southfield-Detroit, in Small businesses can get low-cost or free advice Southfield. Baruah will talk about the ramifications of the financial bailout and accept to help ride out the economic downturn questions from attendees. In the current economic climate, what should small-business BY NANCY KAFFER owners be focusing on? Small- CRAIN’S DETROIT BUSINESS business owners need to re- examine the business. Take a andra Kent wants to right-size serious look at the business her business. plan, because whatever S Kent’s Women’s Economic Em- business plan they had a year powerment Group, an 11-year-old food or 18 months ago is outdated. and product distribution service, has For some of those businesses, seven employees and brought in rough- this could provide a great ly $5.9 million in revenue in the last opportunity. Take advantage of year. But with the economy in a tail- the slowness in business to spin, Kent, whose major clients include work on some things you didn’t one hospital system and the city’s casi- have time to work on before. If you’ve got a physical location, nos, is concerned about her company’s like a store, use this time to future. spruce it up. Do the work “I’m trying to look ahead to see yourself. Second, take where we’re going and what we’re do- advantage of training and ing,” she said. counseling opportunities. Kent expects a decrease in sales and We’ve also got this opportunity fears she may have to trim staff and re- to build relationships with duce other expenses, but wasn’t sure competing companies or how best to proceed. So she turned to complementary companies. I’m the Detroit Regional Chamber, and its new not talking about mergers. Band Small Business Triage program. together and get a better deal on The idea behind the program is to of- some services, or join forces to fer chamber members face time with go after some bigger clients. experts in five key fields — sales and GARRETT MACLEAN marketing, human resources and Sandra Kent, shown in the warehouse of her food and product distribution business, turned What are some of the tools the staffing, finance, law, and general busi- to the Detroit Regional Chamber’s Small Business Triage program for advice on surviving SBA is offering to help small ness planning and operations, said the slumping economy. business owners? We have Tammy Carnrike, chamber COO. 1,500 resource partners out “We don’t know fully the effects of director of the Michigan Small Business there, through small business the financial crisis, and what that trick- WHERE TO TURN FOR HELP and Technology Development Center at development centers, through Eastern Michigan University and manag- woman-owned business le-down will be for Ⅲ The Detroit Regional Chamber will ing director of centers, through SCORE small business, but host its next Small Business Triage on EMU’s Center for En- volunteers. … We have all that we have to do what Tuesday. For more information, visit training available, and our Web can to get them www.detroitchamber.com. trepreneurship. “When a banker site (www.sba.gov) is very good. through this period,” Ⅲ Visit the Small Business Technology & All the training we offer is free, Carnrike said. Development Center online at that you’ve worked online or in person. Across the metro www.gvsu.edu/misbtdc/region9/. with for 10 years that area, business advo- Ⅲ The U.S. Small Business you stuck with for Detroit’s SBA office reported a cates and organiza- Administration has a host of online tools periods when other 66 percent decline in SBA- tions are beefing up available at www.sba.gov. bankers were pursu- backed lending compared to the Carnrike services, adding new Ⅲ Detroit’s Service Corps of Retired ing you for business same month last year. Do you programs and reach- Executives chapter can be found online … walks in and says see that continuing ? I hope that King ing out to beleaguered small-business at www.scoredetroit.org. ‘I’ve got to call your loan,’ it’s a shock. we have seen the worst of the owners. They are communicating one credit crisis. That’s not to say It’s always been a possibility, but now message: Take advantage of the re- tions: What exactly is the product or that credit will still not be tough it’s happening.” gion’s abundance of free or paid re- service?” he said. “We’ve been going to come by and slow to recover The SBTDC offers counseling and along in a certain direction, all of a sud- in the months ahead. Banks sources to streamline, cut costs, retool training for new and existing small den the bottom has fallen out of the are trying to lend to one or re-envision the business. businesses. another, and that’s a positive “If it’s so important for the Detroit 3 markets we previously had, so reap- King said the SBTDC is preparing to praise.” sign. I know a lot of folks want to look at their business plans, how launch a program to work with dis- The mission statement should specif- it to be done yesterday, and I much more important is it for small placed workers interested in starting ically describe the product or service, don’t blame them ... but it’s not business, who will be suffering the vi- businesses and continuing to assist ex- cissitudes of this economy, to look at the demand, the target audience, signif- going to be fixed overnight. isting businesses. their business plan?” said Bob Smith, a icant dates and other details, he said. “Now’s the time for the aggressive counselor with the U.S. Small Business Despite the federal government’s entrepreneur to redouble their efforts,” Administration’s Service Corps of Retired Troubled Asset Relief program, which King said. “Right now we are working If you know Executives. has allocated billions of dollars to the someone interesting to help small businesses do things to SCORE provides free counseling to country’s banks, access to credit re- in small business or weather the storm, tighten up their own established or would-be business own- mains a concern for many small-busi- retail Nancy Kaffer operations to make sure they’re doing ers and entrepreneurs. ness owners. should interview, the best job they can to conserve cash Smith suggests that owners of exist- “The thing that’s the most surprising call (313) and market effectively, redouble efforts 446-0412 or write ing businesses refine their companies’ to many of our business owners is the to diversify their client base, and to the nkaffer@ mission statements. way they’re being treated by the banks crain.com “Something that asks these ques- right now,” said Richard King, regional See Survival, Page 11 20081215-NEWS--0010-NAT-CCI-CD_-- 12/12/2008 11:40 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS December 15, 2008

FOCUS:SMALL BUSINESS Business incubators give companies a place to start, grow

BY CONSTANCE CRUMP gy and medical research. Other dergoing renovation in downtown made a difference for the prototyp- SPECIAL TO CRAIN’S DETROIT BUSINESS area incubators focus on high-tech Ypsilanti should be ready for occu- ing and testing firm. Houghton- DETROIT-AREA INCUBATORS businesses and life sciences. pation in the first quarter. Like its based GSE used the OU incubator Steve Cassin has strong hopes Like its fellow incubators — older sibling, it will cater to com- Ⅲ Macomb-Oakland University when it launched a Detroit-area of- Incubator, Sterling Heights that the new Technology Advance- there are five operating in the area panies that are office-based, rather ment SmartZone in Macomb County and at least two more are on the than labs or manufacturers. fice. The most valuable service of Operated by Sterling Heights, Macomb County and Oakland will help county entrepreneurs put way — it offers infrastructure for Spark Central also operates the the cabinet, Simula said, was help their manufacturing backgrounds University. For information, call startups. That includes office and Wet Lab Incubator at Traverwood, evaluating business opportunities. (586) 463-2542. to use in new ways. meeting space, office resources, ac- an Ann Arbor business incubator Startups aren’t the only compa- A Web site is under construction. “We’re trying to preserve our cess to people, programs and net- for life-sciences companies. And it nies that need business incubation, Ⅲ OU Inc SmartZone Business manufacturing working opportunities to turn a is working with other agencies to according to Randal Charlton, exec- Incubator, Rochester Hills roots,” said startup into a midstage business. launch another wet lab business Operated by Oakland University. Cassin, execu- Eventually the Macomb incuba- incubator next year in Plymouth utive director of TechTown, the tive director of tor will hold up to 40 companies, Township targeted to life-sciences Wayne State University incubator. For information, contact David Spencer, (248) 364-6194 or Macomb Coun- Cassin said. It could accommodate companies. TechTown recently launched a [email protected] ty’s planning 55 to 60 clients at its peak, includ- Oakland University’s OU Incubator soft-landing site — suites of offices and economic Web site: www.oakland.edu/ouinc ing virtual clients — companies adds another resource to the busi- designed to attract owners of mid- development de- Ⅲ Spark Central, Ann Arbor that have offices elsewhere but use ness incubator mix with its stage companies outside the U.S. partment. incubator services. The incubator “kitchen cabinet” advisory boards. Operated by Ann Arbor Spark, Ann “That’s where has manufacturing, wet-lab and of- They’re composed of active and re- who want to enter the market. Arbor. the incubator Cassin fice space available. tired executive volunteers — sub- Business newcomers can rent a For information, contact Scott Olson, comes in — to Other incubator operators say ject experts in a variety of business space while they scope out the area. (734) 821-0073 or [email protected] capitalize on our strengths. If you marketing an incubator has bene- fields, according to one kitchen cab- “It’s working incredibly well — can manufacture a car part, you can Web site: www.annarborspark.org fits beyond filling cubicles with en- inet member, retired American Axle we built the first set of nine offices, make a part for an airplane.” Ⅲ Spark East, Ypsilanti trepreneurs whose startups have & Manufacturing Holdings Inc. execu- and the Mexican government’s de- The 80,000-square-foot business good job-creation potential. tive Michael Straney. Operated by Ann Arbor Spark and partment of the economy initially incubator — an important element “Filling the space is important, Straney chaired the kitchen cabi- Eastern Michigan University. of the new SmartZone — opened in but that’s limited to the number of net of GS Engineering, a newly gradu- took three, and then said, ‘Look, we For information, contact Scott Olson, late September in a Sterling bodies we can fit in. The services ated client of the OU Incubator. want the lot for Mexican high-tech (734) 821-0073 or Heights industrial complex on 15 aren’t limited,” said Scott Olson, That group encompassed “all the companies.’ They rented the whole [email protected] Mile Road. Cassin hopes to incubate Web site: www.annarborspark.org managing director of entrepre- people that any small company is space for three years. Now we’ve 12 to 15 companies in the first year. Set to launch in first quarter 2009. neurial business development for going to need — in the same room, got to build more space,” Charlton The incubator will focus on Spark Central, an Ann Arbor busi- at the same time, listening to the Ⅲ Tech Town, Detroit said. defense and homeland security- ness incubator. company talk about the things that Operated by Wayne State University, related businesses as well as alter- Spark Central will be joined by need to be done,” he said. Other inquiries have come from (313) 879-5250 nate energy, advanced manufactur- Spark East early next year. The GS Engineering President Glen business people in Hungary, China, Web site: http://techtownwsu.org ing, advanced automotive technolo- 10,000-square-foot space now un- Simula said the kitchen cabinet India and elsewhere. 20081215-NEWS--0010,0011-NAT-CCI-CD_-- 12/12/2008 12:44 PM Page 2

December 15, 2008 CRAIN’S DETROIT BUSINESS Page 11

FOCUS:SMALL BUSINESS Microloan programs help small businesses From woodstock with spotty credit to blue chip stock

BY NANCY KAFFER CRAIN’S DETROIT BUSINESS MORE ON MICROLOANS Some small-business owners or For more information on startup companies may find trou- microloans, see ble when seeking financing from a http://detmicrofund.com or mainstream source. It could be the http://www.miceed.org and click on microloan information. result of blips on their credit history or no established track record. to $600,000 to $700,000” and make 20 Life’s a journey. Enjoy the ride. That’s where microloan funds to 24 loans in the core program, he come in. People change. So should their wealth management said. Part counseling service and part strategies. Ask about our SelectAdvantage Model Rucker said the microloan pro- nontraditional lender, microloan Portfolios.* Call us at 734.242.2205, or visit us on gram has made 17 loans this year at programs fill a niche, advocates an average size of $25,000. Its $3 mil- the web at www.mbandt.com say, underserved by mainstream lion in funding comes from the lenders. city’s Casino Business Develop- “We want to see small business- ment Fund and the U.S. Small Busi- es grow,” said Vanessa Rucker, di- ness Administration. rector of the two-year-old Detroit- Both the microloan and micro-en- based Small Business Detroit terprise programs have geographic Powerful. Personalized. Performance. Microloan Program. “Right now requirements — the microloan pro- with the financial institutions, gram is for Detroit-based business- small businesses who have had es only, the micro-enterprise fund lines of credit or are struggling a lends to businesses in Detroit, Ham- little bit have not been able to go tramck and Highland Park. Both re- * Not FDIC Insured. Not Bank Guaranteed. May Lose Value. Not Guaranteed by any Government Agency. Not a Bank Deposit. back to the banks. We work with fer applicants to counseling agen- people who have had challenges to cies that include the SBA’s Service their credit.” Corps of Retired Executives or the The microloan program, Rucker Small Business and Technology Devel- said, will work with clients whose opment Centers for tips on writing a credit histories include a dis- business plan or how to present in- charged bankruptcy or a foreclo- formation for a loan application. sure that’s in a payment plan. The microloan program holds The microloan program reviews weekly orientation sessions on the an applicant’s credit history but application process and holds peri- doesn’t make decisions based sole- odic industry-specific roundtables. ly on credit score, Rucker said. “We have several different agen- The Detroit Micro-Enterprise Fund cies in the city that are willing to as- has a similar mission. In its first sist people … we have several agen- year of operation, the fund has cies that small businesses didn’t made seven loans worth about know they could go to for assis- $100,000 from its $250,000 capital, tance,” Rucker said. “And they’re said Executive Director Lorenzo free of charge.” Thurman. Nancy Kaffer: (313) 446-0412, “Our goal next year is to expand [email protected].

Survival: Groups help ■ From Page 9

extent they can, find new business niques. And a lot of these groups outside of Michigan or diversify have great educational programs.” their business to areas that are Joining trade organizations has growing.” also been beneficial, she said. Anita Mitzel and husband Don “It’s not any one thing; it’s kind know firsthand the value of local of getting yourself out there in dif- business resources. The Mitzels — ferent areas,” she said. “When you Twenty˜4® she’s president and he’s COO of get out there and talk to a lot of Ref. 4910/10A Livonia-based GraphiColor Systems people, you can see how many op- Inc. — belong to the Detroit Region- portunities are actually out there.” al Chamber, the Livonia Chamber of For Kent, the experts at the Commerce, Walsh College’s Business DRC’s Small Business Triage Leadership Institute, the National As- eased some of her concerns about sociation of Women Business Owners, changes she may have to make, the Detroit Economic Club and Au- with tips about how to evaluate tomation Alley. employees, how to follow legal “We find that networking is one guidelines when making layoffs of the easiest ways to get our mes- and how to include employees in sage out,” said Mitzel, whose firm the streamlining process. provides portable and modular “There were things I had never trade show displays and large-for- thought of,” she said. “It just made mat graphics. “Getting referrals me feel good.” from people is a lot easier than Nancy Kaffer: (313) 446-0412, some traditional selling tech- [email protected]. 20081215-NEWS--0012-NAT-CCI-CD_-- 12/12/2008 11:44 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS December 15, 2008

FOCUS:SMALL BUSINESS Changing the business name? Choose carefully

Chris Darbonné hadn’t “We were trying to con- change that requires it? Are you been in business very vey that it was the casual changing because it’s confusing long when she began to Small Biz nature of the snapshot, HOW TO PLAY THE BUSINESS NAME-CHANGE GAME with another company name? Or have regrets about her Solutions but we had a lot of people Tips from Mark Young, chairman, that’s too creative may leave are you changing it because it will Western Creative Inc.: customers cold. company’s name. who were surprised be- reflect who the business is and Now called Darbonné cause our photos are up- THINK ABOUT HOW THE COMMUNITY Name changes aren’t cheap. Be what the business does?” he said. PERCEIVES YOUR BUSINESS. WILL A NAME Portraits, the Troy-based scale, and our pricing re- prepared to spend, whether on a The first rule, Young said, is like CHANGE ATTRACT OR REPEL CUSTOMERS? photography studio flects that.” marketing campaign or on replacing the charge to doctors — first, do no Don’t get too funky. While it’s opened two years ago as Darbonné and her business materials bearing the old harm. good to stand out, a new name name. Charming Snapshots. team tossed a number of “Try to measure. What is the eq- “I think the term suggestions around, but be complicated, said Mark Young, Business owners contemplating uity in the current name?” he said. ‘snapshots’ gave the peo- finally settled on Darbon- chairman of Redford Township- a name change should begin by an- “Is it a positive equity or negative ple the impression that Nancy Kaffer né Portraits with the help based advertising and marketing alyzing the reasons, Young said. equity?” the quality is that of a of a hired consultant. agency Western Creative Inc., for- “Are you changing the name be- An owner of a restaurant con- snapshot,” Darbonné said. Engineering a name change can merly Western Communications. cause there’s been an ownership templating a name change, for example, might visit local review Web sites to determine the public perception of the business. “In some businesses, such as hospitality, name changes make a lot of sense if there’s negative equity,” Young said. “Most people who have tried a club, lounge, bar or restaurant and had a bad experience are likely to remember it and not return. So in that case, a name change can be good, because in the world of local business, most people will give the new name a shot. “On the other hand, if you’re buying a brand that has positive equity, you need to be careful.” ere’s to you. Whether the business name has positive or negative equity deter- mines how the name change should be handled, he said. The owner of a well-liked business might want to make the change slowly, or even consider co-branding with the business’ old and new names. But a business with negative name recognition should slash and burn, eliminating all traces of the prior brand, Young said. “My advice would be change everything as radically as possible, don’t recycle the logo, image or font, just get away from anything that’s reminiscent (of the old name),” he said. “But if you’re trying to build on positive equity, you may want to phase in things like fonts, artwork, colors.” When Western Creative changed its name about 10 years ago, Young said, it was because the descriptor “communications” had become widely identified with stores selling cellular phones or Thank you, commercial banking customers for choosing Huntington. Our steadfast paging devices. “Though it wasn’t a radical dedication to helping customers bank successfully has earned us four Greenwich name change, we wiped out every- awards for excellence in commercial banking. After 142 years of service we’re thing — logos, colors, literature, business cards. We trashed every- proud to be leaders in our industry. But we’re even more proud to be working thing and replaced it all,” he said. Young also advises business with commercial banking customers who are leaders in theirs. Helping you build owners to consider the current economic climate, because a name successful businesses is not as much a job as an honor. change can be expensive. Darbonné said she spent about $4,000 on her name change, including a direct-mail piece, an e-mail blast to current clients, a new Web address, reformatting promotional materials and changing signs. It’s hard to say if the name change has affected business, she said — the studio raised prices after the name change, and though 1-866-921-4990 | huntington.com order size has grown, order volume has decreased. And feedback has been mixed. “Turns out, some people really miss the old name,” she said. Greenwich Associates is a leading worldwide strategic consulting and research firm specializing in financial services. Excellence award selection was based upon the results of the 2008 Middle Market Business Banking Study conducted by Greenwich Nancy Kaffer: (313) 446-0412, Associates. Banks selected for an award had to have a significantly different percentage of “excellent” ratings than the mean for all banks at a 90% confidence level. The Huntington National Bank is an Equal Housing Lender and Member FDIC. ,® Huntington® and A bank invested in people® are federally registered service marks of Huntington Bancshares Incorporated. ©2008 Huntington Bancshares Incorporated. [email protected] DBpageAD.qxd 12/11/2008 10:46 AM Page 1

OPPORTUNITIES. It would lead the way in the future of business with more than 2,000 high-tech research and development facilities. Its visionary entrepreneurs would develop revolutionary software that changes the way companies do business today and tomorrow. My Ideal City would have hundreds of dynamic workplaces and host half of the top 100 Global Fortune 500 companies. It also would connect me with global firms and resources. But My Ideal City is not just ideal, it’s real – and can be found in Oakland County.

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Page 14 CRAIN’S DETROIT BUSINESS December 15, 2008 PEOPLE BIOTECH counting and auditing department. Toledo, Ohio. William Pinon to CEO and president, IN THE SPOTLIGHT Maria Boduch to regional sales man- Jen Lenard-Benson to development di- Terumo Heart Inc., Ann Arbor, from ager, Independent Bank, Troy, from rector, Nonprofit Enterprise at Work CEO, Bioheart Inc., Sunrise, Fla. Ida Tomlin has The society’s COO position had assistant vice president and branch Inc., Ann Arbor, from development di- been named been vacant since Steve Horn left manager. rector, Perry Nursery School, Ann Ar- FINANCE COO of the the position in 2004. bor. Also, Jill Tewsley to community HEALTH CARE outreach manager, from senior mar- Traci Belt to man- Royal Oak- Tomlin, 56, had been COO and keting manager, Borders Group, Ann Joslyn Pettway to ager, Andrews based Detroit vice president of human resources Arbor. Hooper & Pavlik Zoological for the Detroit Science Center. director of prima- Society, the ry care plc, Auburn Hills, She earned a bachelor’s degree in initiatives, the SERVICES from senior ac- nonprofit which communications/media from the Detroit Wayne Lori Herbig to executive director, countant. operates the University of Michigan-Dearborn County Health Au- Chelsea Retirement Community, Cathleen Savoie to Detroit Zoo and and a master’s degree in public thority, Detroit, Chelsea, from COO of Healthcare, senior vice presi- the Belle Isle administration from Fitchburg from administra- Sunset Association, Jenison. dent and invest- Tomlin Nature Zoo. State College in Fitchburg, Mass. tive fellow. Kevin Sullivan to chief sales and devel- ment officer, Trust Pettway opment officer, MPS Group, Detroit, and Investment LAW from COO. Also, Jeffrey Paulsen to bor. Michigan, East Lansing. Belt Management Mark Adams to shareholder, Hall Ren- COO, from group president for energy William Wesley to resident vice presi- Scott Price to managing director, Group, Bank of Ann Arbor, Ann Arbor, der, Troy, from of counsel. products and industrial specialties, from senior vice president and senior dent, Harleysville Insurance, Livonia, Wright Griffin Davis and Co., Ann Ar- TriMas Corp., Bloomfield Hills. portfolio manager, Key Bank, Ann Ar- from executive vice president, HRH bor, from director in charge of the ac- MANUFACTURING Jami Horton to executive director, Boulevard Temple Rehabilitation and Bob Brooks to chief information offi- Nursing Center, United Methodist Re- cer, GroupeStahl, St. Clair Shores, tirement Communities, Detroit, from from vice president of information interim director. technology. SUPPLIERS MARKET PLACE MARKETING Dave Higbie to global director, soft- Frank Buscemi to ware, Ricardo Inc., Van Buren Town- ANNOUNCEMENTS & APPAREL/CORPORATE & CASUAL director-strategic ship, from director, North American SERVICES communications, simulation software business unit, The Quell Group, AVL North America Inc., Plymouth. Troy, from man- BUSINESS SERVICES Livonia Also, Alan Chewter to chief engineer, 734.591.3338 ager of public re- Control and Electronics product Detroit - Windsor / Toronto shipments lations, ZF Group group, from North American cus- International LTL-Volume rates TOO HIGH?? NAO, Northville. tomer appreciation application man- Shelby Township U.S. - Canadian Consolidations - Chris Foley to en- ager, System Development section, Warehousing - Storage - Distribution 586.247.7400 Freight Brokerage -Truckload & Partials gagement manag- Engine Systems Business Unit, Conti- er, Enlighten, Ann nental, Dearborn. www.MRTRANSPORTATION.COM 734-946-7031 Buscemi St. Clair Shores/Grosse Pointe Arbor, from Business Conditions Require An Interim Controller? 586.552.3668 group account director, Kraft Foods Get results! Long or short-term engagements. North America account, Euro RSCG PEOPLE GUIDELINES 30 yrs exp. Problem solver. Flexible scheduling. 8"-, Worldwide, New York, N.Y. [email protected] Birmingham on Kathleen Nowak to account manager, Announcements are limited to 248.593.9600 management positions. Nonprofit IN YOUR FINE MADE-TO-ORDER"*3 COMFORT FOOTWEAR BY: Smith-Winchester, Southfield, from and industry group board WE SELL BUSINESSES account manager, Doner Advertising, West Bloomﬁeld Southfield. appointments can be found at Confidential & Professional Service. 248.960.0939 www.crainsdetroit.com. Send Specialize in Manufacturing, Distribution & submissions for People to Joanne Business -To-Business Service Industries. DOZENS OF STYLES MADE TO ANY SIZE & WIDTH NONPROFIT Scharich, Crain’s Detroit Business, Confidential Business Sale, Inc. PERSONALIZED SERVICE WITH COMPLETE FOOT ASSESSMENT Jeffrey House to www.ConfidentialBusinessSale.com senior vice presi- 1155 Gratiot Ave., Detroit, MI Detroit Metro Office 313-221-9378 HIGHEST QUALITY MATERIALS & UNSURPASSED COMFORT dent and COO, 48207-2997, or send e-mail to [email protected]. Releases VISIT WWW.TAUERANDJOHNSON.COM TO VIEW OUR COMPLETE SELECTION WWW.FOOTSOLUTIONS.COM Visiting Nurse As- sociation of must contain the person’s name, %3&44t$"46"-t(0-'t#0054t%3&44t$"46"-t(0-'t#0054t%3&44t$"46"-t(0-'t#0054 new title, company, city in which FINANCIAL SERVICES Southeast Michi- gan, Oak Park, the person will work, former title, NEED CASH? WEB DESIGN BUSINESS & from general former company (if not promoted Sell your unneeded or unwanted life insurance policy. INVESTMENTS manager-Midwest from within) and former city in For 24 hr FREE recorded information which the person worked. Photos Call 1-800-901-6829 ext. 100 Division, Heart- BUSINESSES FOR SALE land Home Health are welcome, but we cannot House Care and Hospice, guarantee they will be used. JET’S PIZZA FRANCHISES IN NORTHERN OHIO PUBLIC NOTICES Three operating stores with future territorial agreement. Call 586-412-0010

DEVELOPMENT SITE WANTED BUSINESS OPPORTUNITIES The U.S. General Services Administration is requesting Expressions of Interest in LEARN WHY OWNING A RECESSION seeking a no-cost assignable option to pur- WAREHOUSE ORGANIZATION RESISTANT SPEED QUEEN COIN LAUNDRY CRAIN’S SEEKS M&A NOMINATIONS chase a 9-11 acre building site that is situ- IS SO PROFITABLE ated entirely within the City Limits of Get your warehouse organized and operating Financing & Locations Involved in a merger, acquisition or categories: Investments of less Detroit. efficiently with the help of the professional space Free Informational profit seminar held Saturdays expansion in 2008? than $50 million and $50 million planners at www.Shelving.com. Our trained 10 am -12 noon. Call for details & reservations. or more. A site that is submitted for consideration space consultants will put your space to work. UNIVERSAL COIN LAUNDRY MACHINERY You may be should have all of the following character- Call today 800-637-9508 for a free assessment www.universal-laundry.com eligible for the Lifetime istics; site configuration to be square or 248-435-6200 second annual rectangular, level topography, access to all Achievement: public utilities, public road frontage, free of Crain’s M&A Senior-level hazardous substances, close proximity to INVESTMENT OPPORTUNITIES Awards contest. executive who has interstate access, general office zoning, fully assembled site area. A site that if se- Call Us For Personalized birmingSHOEham Crain’s Detroit been involved in lected is intended to be improved with a Colorful, community-based women’s shoe store Business and the significant privately owned/constructed general office Service: (313) 446-6068 seeks intelligent, cheerful investor for concept store. Detroit chapter of transactions and facility that will be federally occupied. Spring ’09. 248-505-7402 the Association has made a A site that is submitted for consideration CLOSING TIMES: Monday 3 p.m., EQUIPMENT & for Corporate significant impact must be accompanied with a certified topo- Growth will honor on the community. graphical boundary survey, title evidence, one week prior to publication date. MERCHANDISE companies and environmental site assessments, proof of Please call us for holiday closing times. Applications for ownership or evidence of written authoriza- individuals in the following tion to represent the ownership and asking OFFICE FURNITURE categories: the M&A awards can be found FAX: (313) 446-1757 online at price. Best Deal of the Year: Under E-MAIL: [email protected] MUST SELL, OFFICE CLOSED www.crainsdetroit.com/nominate. The Government reserves the right to Desks $99, Chairs $39, Files $49, Partitions $50, $100 million and $100 million or The deadline for entering is Jan. 9. reject any one or all of the sites submitted Lateral Files $99, Cubicles, Office Phone Systems more. for consideration, as determined in its sole INTERNET: Call (248) 548-6404 or (248) 474-3375. Winners will be announced at a discretion. This request for Expressions of www.crainsdetroit.com/section/classifieds Dealmaker of the Year: M&A strolling dinner to be scheduled in Interest shall close on January 30, 2009 at TELECOMMUNICATIONS experts, lenders, CPAs, March. 5:00 PM EST. All submittals must be in consultants and attorneys, among receipt thereby at the address below. Confidential Reply Boxes Available The Detroit chapter of the LUCENT . . . AVAYA. . . PARTNER. . . others, are eligible. Association for Corporate Growth Send Expressions of Interest to the PAYMENT: All classified ads must be MAGIX. . . VOIP. . .LEGEND . . . Best Woman or Minority MERLIN. . .SPIRIT Systems/Parts New/refurbished. is part of a global association of following address: prepaid. Checks, money order or Enterprise Deal. Omnicall Equipment Corp. (248) 848-9282 professionals involved in corporate FORREST HUDSON Crain’s credit approval accepted. Best Expansions. This is a new WE HAVE USED PHONES growth, development and mergers Warranted Contracting Officer Credit cards accepted. Nortel, Lucent, phone systems. Almost any new or category and can include physical Property Development Department used phone available. Expert installation available. plant expansions, new product and acquisitions. The local chapter Public Buildings Services Call (248)548-6404 was formed in 1984 and has about U.S. General Services Administration See lines, diversification of client base 230 South Dearborn Street, Suite 3600 and other similar activities that 270 members. For more Chicago, IL 60604 Crainsdetroit.com/Section/Classifieds Advertise your goods and services in lead to job creation and/or information, see for more classified advertisements Crain’s Detroit Business economic growth. There are two chapters.acg.org/Detroit. 20081215-NEWS--0015-NAT-CCI-CD_-- 12/12/2008 11:41 AM Page 1

December 15, 2008 CRAIN’S DETROIT BUSINESS Page 15 BUSINESS DIARY CALENDAR ACQUISITIONS replenishment systems. Derek Mehraban, (734) 272-4698. Together. 11:30 a.m.-1:30 p.m. Detroit TUESDAY Economic Club. Speaker: Joe Serra, Kimmel Enterprises L.L.C., an affiliat- Grid4 Communications, Troy, and Au- ed company of Kimmel Scrap Iron & tomotive Network Exchange, South- DEC. 16 How will the Eco- president, Serra Automotive and co- Metal Co., Detroit, has acquired sub- field, have executed an agreement for nomic Crisis Im- chairman of the 2009 North American Grid4 to become a Certified Service Networking Business Coalition of International Auto Show. Cobo Cen- stantially all of the assets of Omega Northern Macomb County. 8 a.m. The pact Your Busi- Metals Inc., Warren. Omega Metals Provider for the ANX Network. ter, Detroit. $40 members, $50 guests group invites new businesses to join ness? 7:30-9 a.m. and Kimmel Enterprises purchase Lawrence Technological University, of members, $75 others. Contact: (313) its networking group on Tuesdays. Detroit Regional and recycle scrap metal in Michigan. Southfield, has become a community 963-8547. Romeo United Methodist Church, Chamber. Sandy partner of the Southeast Michigan acting ad- Mid American Studio, a Farmington Romeo. Free. Contact: (586) 336-1513. Baruah, Hills-based fitness and dance facility, program of Leave a Legacy. ministrator, U.S. has merged with Astarte Yoga of Digital Dialogue, an Auburn Hills Small Business CALENDAR GUIDELINES Farmington. The new business company that provides call-center Administration. More Calendar items can be found arrangement will allow Astarte’s cer- software and services to credit Westin Hotel on the Web at www.crainsdetroit. tified yoga instructors to teach their unions, announced it added nine new WEDNESDAY Southfield. Free. clients during the third quarter. They Baruah com. Please send news releases specialties at Mid American Studio. DEC. 17 Contact: www. for Calendar to Joanne Scharich, Astarte will close its studio to public included: Community One Federal detroitchamber.com. classes but continue to maintain its Credit Union, Las Vegas; State Em- Crain’s Detroit Business, 1155 LA2M-Lunch Ann Arbor Marketing. 11:30 Gratiot Ave., Detroit, MI 48207- Web site at www.astarteyoga.com. ployees Credit Union, Linthicum, Md.; a.m.-1 p.m. Beth Stoner, Delta Possibili- Patelco Credit Union, Merced, Calif.; 2997, or e-mail jscharich@ ties. A weekly meeting of marketing THURSDAY and Saratoga Federal Credit Union, crain.com. You also may submit CONTRACTS professionals from traditional and digi- Saratoga Springs, N.Y. DEC. 18 Calendar items in the Calendar Fry Inc., Ann Arbor, announced tal spheres. Pizza Pino, Ann Arbor. section of crainsdetroit.com. Charlotte Russe Holding Inc., a EXPANSIONS Free. Buy your own lunch. Contact: Where the Automotive World Comes San Diego-based young women’s apparel retailer, has enlisted the compa- Mr. Pita, Commerce Township, has ny to manage its e-commerce. Char- expanded into North Carolina with lotte Russe’s site is at the opening of its first restaurant in www.charlotterusse.com. Charlotte. Patrick Mulcrone of Char- Pure Visibility, an Ann Arbor Internet lotte, Joseph Gerbino of Sterling Heights, and Tom Bommarito of Troy REAL ESTATE marketing firm, has added Battle Creek-based cereal company Kellogg are the franchisees. It is the first of 30 Co. as a new account for its analytics Mr. Pita restaurants the three plan to AUCTIONS INVESTMENT PROPERTY analysis and consulting services. open in greater Charlotte. LYON TOWNSHIP/BANK OWNED Energy Conversion Devices Inc., Internet 123 Inc., Southfield, announced the completion of a 10G up- PUBLIC AUCTION Wed., December 17th at 10:00 am 12-unit rental townhouse project available. Rochester Hills, and Marcegaglia Get a great deal on this investment opportunity. S.p.A., an Italian steel manufacturing grade to its IP backbone network, in- Contact Karen Shepherd at 248-290-5300 ext. 311 company, announced a combined creasing total capacity to 14G. 23,860 SF Commercial/Industrial Building on 1.2 Acres multiyear supply agreement for Uni- Palm Palace L.L.C., a Clinton Town- Location: 12720 Burt Rd., Detroit, MI RETAIL SPACE Solar cells. ECD’s subsidiary United ship Mediterranean restaurant, opened its second location at 2065 N. Solar Ovonic will supply Marcegaglia • Great Retail Opportunity with individual photovoltaic cells for Squirrel Road in Auburn Hills. The Numerous Possibilities, Zoned M-4 use in commercial roofing products Auburn Hills Palm Palace will offer • Newer Roof in the most sought after seating for 200 and both sit-down and that Marcegaglia is developing. • Renovations in 08, w/ Updated Offices retail destination in Metro Detroit! Marcegaglia plans to introduce the so- carry-out service. The new Palm - Expand your customer base - Palace is one of five to eight planned • 5 Overhead Cranes (1T - 5T) lar-integrated metal roofing products share this spacious building with in 2010. for the area. Telephone: (248) 371-9000. • Fenced Parking w/ electronic gate Web site: www.palmpalace.com. Michigan’s Premier Rug Retailer Urban Science, a Detroit retail con- TERMS sulting firm, announced its Munich 10% Buyers Premium is Added, 10% Down Day of Sale, Balance & Possession at Closing. FOR LEASE office has been awarded a contract LITERATURE EQUIPMENT 43223 Twelve Mile, Novi with Fiat Group Automobiles to pro- Ideation Inc., Ann Arbor, has pub- vide AssessNet, a standards manage- lished its holiday gift catalog for 2008. GMC Stake Truck; GMC Van; InterLake Pallet Racking & Wire Decking; (12 Oaks Mall perimeter) ment system to help the automaker It includes more than 165 home acces- Bathroom Partitions & Assessories; Storage Cabinets; Carts; Work Benches; Tool Cabinets; 5,000-30,000 Sq Ft available improve the efficiency of its retail net- sory, gift and novelty items for men Space is divisible / Brokers protected work. and women, boys and girls. The cata- Master Lock Lockers; Industrial Shelving; Edsal Work Tables; Office Furniture & More!! Phire Branding Co., Ann Arbor, has log can be viewed and shopped at TERMS OF EQUIPMENT completed a new Web site for the CFI www.paradeofgifts.com. Cash, Check w/ Bank Letter, Visa or M/C. 10% Buyers Premium Added Group, Ann Arbor, as its marketing and branding partner. MOVES Wilson Auction & Realty Co., LTD. Real Estate is in Co-Operation with Travel Michigan, Lansing, selected So- The Sterling Foot Care Group to 43330 Call Toll Free: 866-870-5500 Colliers International Contact Edgar Hagopian journ Communications Group Inc. of Mound Road in Sterling Heights. The Wayne M. Wilson CAI, Brent J. Wilson CAI Scott McGinnis, 248-540-1000 Grosse Pointe Woods as its public-re- new 3,500-square-foot facility offers (248) 207-8737 lations agency of record to promote foot and ankle care by Drs. Beneson, [email protected] Michigan tourism. Sojourn has been Brown and Solway. Telephone: (586) Broker participation encouraged! Travel Michigan’s agency of record 323-3668. WATERFRONT PROPERTY since it first won the business in De- www.WilsonAuctionLtd.com www.colliers.com/detroit cember 2005. ON ORCHARD LAKE OTHER 4 bedroom ranch, 3 1/2 baths on SmithGroup, Ann Arbor and Detroit, INDUSTRIAL PROPERTY OFFICE SPACE NSF International, Ann Arbor, an- 1.4 acres premium lot. 248-335-0104 announced it provided architecture www.5081commerce.com and engineering services and medical nounced AppleBoost Products Inc., a LARGE 1 ACRE LAKEFRONT LOTS - 15 min from equipment planning for the new Vet- Churubusco, N.Y., food-supplement company, has completed the require- Novi/Ann Arbor on all sports lake in Brighton. ALSO, erans Affairs Ambulatory Care Clinic 4100 sf new Lakefront home ready for move-in 90 in Columbus, Ohio, an $89 million, ments of the NSF Certified for Sport days. Discounts Available.Call 810-220-8060 303,000-square-foot clinic. program, which reduces the risk that Now Leasing: 83,700 sq. ft. a dietary or sports supplement con- Aristeo Construction, Livonia, has be- Where Quality Tenants Find Exceptional Value gun press pit modifications at Toyota tains banned substances. It is recog- Catellus Group, LLC 810-695-7700 Motor Manufacturing in Georgetown, nized by Major League Baseball and MERCHANT’S ROW the MLB Players Association. Ky. Partial demolition of two press For Lease pits is required to facilitate the con- The KPM Group, a Livonia recruiting Ideal for professional services struction of the new 10A Tandem firm, has been granted certification AVAILABLE NOW 1200-1400 Woodward, Detroit Press Pit Foundation. This is the first by the Women’s Business Enterprise Suites from 1,600 up to 12,405 SF project of this type to take place in an National Council. To become certified 4,000 to 100,000 sq. ft. active stamping facility. by the council, a company must verify Also 10,000 & 25,000 sq. ft. • Excellent Woodward exposure Iwerk, a Royal Oak software develop- that it is owned, managed and con- Free Standing Bldgs w/truckwells. • In the heart of the Campus Martius ment company, has completed an e- trolled by a woman or women. • Walking distance to world class sporting 1 Mile from Metro Airport venues commerce project on the Ford Motor Michigan Association for Female En- REA CONSTRUCTION Co. Ford Accessories Web site, trepreneurs, Southfield, has become Contact: Deb Munro or Chuck Thompson www.fordaccessories.com, to make an association member of the U.S. (734) 946-8730 248-352-5000 First Commercial online payment and shipping easier. Women’s Chamber of Commerce, Also Heavy Industrial Iwerk worked with Ford ad agency Washington, D.C. TeamDetroit-Ogilvy on the project. Land Available Buffalo Wild Wings Inc., a Minneapo- www.reaconstruction.net lis-based restaurant chain, has named DIARY GUIDELINES Campbell-Ewald, Warren, as its local marketing partner, with responsibili- Send news releases for Business ty for local market media planning Diary to Joanne Scharich, Crain’s and buying as well as new restaurant Detroit Business, 1155 Gratiot openings and other initiatives. Ave., Detroit, MI 48207-2997 or MessageWay Solutions, Livonia, an- send e-mail to jscharich@crain. nounced Home Hardware Stores Ltd., com. Use any Business Diary item a St. Jacobs, Ontario, Canada-based as a model for your release, and retailer, has selected MessageWay for look for the appropriate category. advanced managed file transfer. Mes- Without complete information, sageWay will be used to manage the your item will not run. Photos are exchange of electronic files between welcome, but we cannot more than 1,000 retail outlets and the guarantee they will be used. home hardware order processing and 20081215-NEWS--0016-NAT-CCI-CD_-- 12/12/2008 12:06 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS December 15, 2008 Transit plan: A ‘multiplier effect’ Hertel: $10.5B over 25 years will bring $42B in development

BY BILL SHEA It’s also a realistic cost given the CRAIN’S DETROIT BUSINESS current economic conditions and TRANSIT MODES the incoming Obama administra- A $10.5 billion price tag over 25 tion’s commitment to infrastruc- These are the proposed modes of transportation for the new three- years is reasonable for what could ture spending, they add. be considered the deluxe version county mass-transit plan’s 406 “It’s a very reasonable number miles of corridors: of the three-county mass transit given the time we’re in here, in Ⅲ Arterial Rapid Transit (ART): plan, especially because it would terms of how long we’ve been wait- mean billions in new investment, Buses with traffic-signal priority ing to do this,” said transit czar and enhanced stops (shelters with project backers say. John Hertel, route information and more). This who leads the ef- is the first phase of the transit plan fort to deploy and the cheapest. Buses cost from the plan as CEO $275,000 for regular vehicles up CAREER of the Regional to $600,000 for hybrids with such Transportation amenities as Wi-Fi Internet access. Cost is up to $450,000 per mile to Coordinating implement. MOVES Council’s Detroit Ⅲ Bus Rapid Transit (BRT): Buses Regional Mass A rendering shows a possible light-rail station at Wayne State University. that look and operate like trains FINANCE Transit effort. but run on rubber tires. They “When you com- put in that trust fund to support all operate in dedicated lanes and CHIEF FINANCIAL OFFICER Hertel pare it to the projects we want to do after the typically have enhanced passenger amounts spent on projects else- GOALS Private Real Estate Holding Company with (Obama infrastructure) stimu- facilities, making them a hybrid of multiple entities seeks CFO with Banking & where, it’s quite reasonable and bus and rail. Cost is up to $1.2 Finance experience to oversee debt placement, The Regional Transit Coordinating lus?” he said. rational.” million per bus and $9.1 million to Budgeting & Forecasting, Cost Control, and Council’s seven stated goals are: The metro Detroit system also Growth Strategies. The selling point is the notion $21 million per mile to implement. Ⅲ Provide safe, affordable, clean, will require a local subsidy to off- Fax resume to 810.767.1196. that for every $1 invested in mass Ⅲ Light Rail Transit (LRT): convenient, on-time transit service. set operational expenses not cov- transit comes at least $4 in new in- Electronically run railcars operating Ⅲ Provide better transit options to ered by fares and state and federal vestment along the route’s corri- on city streets over shorter, looped seniors and the disabled. funding. The resolution approved routes. There are proposals to Seeking a high energy Treasury dors, Hertel said, meaning $42 bil- Ⅲ Promote transit-oriented by the Big 4, at the behest of Patter- install such cars, which could be Management Sales Officer, CCM or CTP lion in fresh development in the certification desired or within one year of development. son, included a stipulation calling modern streetcars or slightly larger region — the largest in the country employment, 3 years Treasury Sales or Ⅲ Promote regional economic for a public referendum on any lo- and faster train-style vehicles., on without a significant rail system. related experience, bachelor’s degree in growth. cal operating subsidy, which could Woodward Avenue. Street cars finance or accounting. Self-motivated “We know no matter what, even Ⅲ Make Southeast Michigan a be a sales tax. cost up to $3.5 million for a three- self-starter eager to sell and take if it were to be less than the low car train and range from $16 responsibility beyond job description and destination to attract and retain There’s no target date for a bal- end of the scale, you’re still talking million to $29 million per mile to consult and present to external and internal younger residents. lot initiative. about a tremendous multiplier ef- install. The larger trains are $4 audiences. Collaborates with related bank Ⅲ Increase overall access to Getting a local subsidy actually personnel and keeps abreast of industry fect,” he said. “Where else do you workplaces, health care providers, million to $5 million for two-car on the ballot likely will be more units and cost $59 million to $69 developments and clients’ needs. High get such bang for your buck?” entertainment and sports events, caliber sales, communication, and related difficult than persuading voters to million per mile to construct. Hertel’s bosses — Detroit Mayor retail establishments and cultural business skills that anticipate and address support it, said Megan Owens, ex- Ⅲ Commuter Rail: Heavy trains Ken Cockrel Jr., Wayne County venues. concerns and offer solutions required to join ecutive director of Detroit-based operating on the same tracks as our team. Equal Opportunity Employer Executive Robert Ficano, Oakland Ⅲ Make it happen as soon and as Transportation Riders United, an or- freight rail traffic and aimed at County Executive L. Brooks Pat- cost-effectively as possible. Applicants may apply at www.tcfbank.com ganization dedicated to improv- longer-distance commutes. The 48- terson and Macomb County Board Source: Comprehensive regional transit under Career Opportunities or fax a resume ing and promoting transportation mile Ann Arbor-Detroit line would to (734) 542-2975 or mail to: Chairman William Crouchman, service plan final report access and mobility in metro De- be commuter rail, with a possible collectively known as the “Big 4” link to the north ending in Port troit. TCF Bank Human Resources — unanimously approved Hertel’s private entity, according to Her- Huron. Cost is $1.7 million to $3.3 17440 College Parkway, 604-01-J “The big challenge is convincing plan Dec. 8. tel’s report to the elected leaders. million per mile to implement, and Livonia, MI 48152 the politicians to vote to put it on The proposal calls for 406 miles Forming the basis of the plan is a train of one engine and five © 2008 TCF National Bank, Member FDIC the ballot. They’re more afraid of passenger cars can cost from $2.5 of new modes of public transporta- a $400,000 regional transit study by taxes than the population is,” she million to $15 million. tion in 18 corridors by 2035, includ- Kansas City-based transportation GENERAL said. “I believe that people are far- Source: Comprehensive Regional Transit ing improved dedicated bus ser- consulting firm TranSystems Corp. ther ahead of this than a lot of the Service Plan final report vice and new light and commuter SEMCOG is expected to adopt EXECUTIVE DIRECTOR politicians. If people understand rail lines, in the three counties and the three-county proposal into its Non profit seeks an Executive Director to develop, what they’re getting, they’ll be to study the governance systems of implement and administer programs for their member city of Detroit. long-term plans supportive.” mass-transit systems in other U.S. based organization. Ideal candidate will have three A key point is that the system next year, or more years fundraising, marketing, sales and She cited the successful example cities, including Denver, Portland management experience. Skills in grant writing and would be deployed in phases only which makes it of the Suburban Mobility Authority for and Chicago, to see what would website management would be helpful. In addition, as public demand warranted them, eligible for fed- candidate must be computer literate and proficient eral funding, Regional Transportation bus service, work best for metro Detroit, Hertel working on budgets. Please forward cover letter, Hertel said, beginning as early as said Carmine which operates in the three coun- said. resume, salary requirements and references via email next year with improved bus ser- to [email protected] Palombo, the re- ties and Detroit, and has its 0.59- He’s also talking to members of vice. gional planning mill property tax subsidy up for re- Congress to ascertain the potential If enough people use the system SALES group’s director newal in 2010. funding for the system, and he so that everything is built, its total of transporta- SMART and the Detroit Depart- plans to approach the Obama ad- Business Development Manager capital construction cost would be tion planning. ment of Transportation’s bus service ministration. the $10.5 billion — with a $293 mil- Palombo C/D/H, a leading technology consulting firm, is Palombo also would be folded into the three- “What’s really timely is that seeking a full time Business Development lion annual base cost to operate it. called the system’s price practical. county system, which needs the President-elect Obama said infra- Manager for our SE Michigan practice area. Denver’s bus and light-rail sys- “When you’re talking about state Legislature to establish a structure is going to be one of his Clients seek our advice and value our partnerships tem, established in 1969 and ex- building a system over the next 25 nonprofit regional authority to first priorities,” he said after last with Microsoft, Novell, Cisco, and VMWare. We panding still today, cost $458 mil- years, that (price) sounds like a run the system. week’s Big 4 vote. conduct business by our Core Values of Active lion this year to operate with fewer very reasonable, very realistic Lansing already has approved He’s also targeting state legisla- Collaboration, Continuous Improvement, Genuine buses and miles of rail line than number. It sounds like a whole lot bills that set up funding, tax zones tors to sponsor the bills needed to Commitment, and Unquestionable Fairness. We the proposed system here. of money, but you need to consider and a nonprofit rail company to establish the regional authority will consider only proven sales professionals with 3 run a privately funded $103 mil- and any state funding. or more years of experience, who are value driven The Detroit total doesn’t include the number of years and the fact and seek a long term relationship with a growing a $463 million commuter rail line you have a whole lot different lion light-rail loop on 3.4 miles of Hertel, who noted there have team-based organization. See the complete job between Ann Arbor and Detroit types of transit that are in (the Woodward Avenue from Hart been 23 prior attempts over 50 description at www.cdh.com. Please send your that’s being implemented by the plan),” he said. Plaza to Grand Boulevard in the years to establish regional mass resume to [email protected] and include Southeast Michigan Council of Gov- Palombo also sounded a warn- New Center. transit, will report his governance BDM-CDB in the subject line. ernments. The route is part of the ing note: Because both gas prices That plan, which is expected to and funding findings to the politi- overall regional plan, however. and usage have fallen, the federal be merged early next year with a cal executives on June 30 but could CRAIN’S CAREER MOVES Funding would come from feder- have some idea on federal funding WORK! fuels tax that fills the trust fund competing DDOT plan, eventually To Place Your Ad Call al, state and local sources, along from which transportation pro- will become part of the regional initiatives in the next few months. (313) 446-6068 or with private investment in a sys- jects are funding is dwindling fast. system’s oversight, Hertel said. Bill Shea: (313) 446-1626, Fax (313) 446-1757 tem that could operate as a public- “Is there going to be new money The regional plan’s next step is [email protected] 20081215-NEWS--0017-NAT-CCI-CD_-- 12/12/2008 6:20 PM Page 1

December 15, 2008 CRAIN’S DETROIT BUSINESS Page 17

SCOREbizSUPPORT IS THERE...WHEN YOU NEED Many auto suppliers ‘at IT MOST! Are you feeling pressures when facing today's economic the end of the rope’; 1st uncertainties due to global competition, rising material costs, and in many cases, price and revenue reductions? quarter looks worse Our SCOREbizSUPPORT team can help with experienced executives in finance, marketing, engineering, materials management, production, IT BY RYAN BEENE Fitzgerald says he expects to see CRAIN’S DETROIT BUSINESS more liquidations than court reor- and business development. ganizations among the tier-two Defaults, bankruptcies and liq- and tier-three suppliers, $50 mil- uidations of Southeast Michigan lion to $250 million annual rev- 313-226-7947 auto suppliers could gain momen- enue companies that are closely [email protected] (SBA sponsored) tum in the first quarter of 2009. held. General Motors Corp. announced Publicly traded tier-one suppli- Friday it planned to cut 30 percent ers in financial distress are more of its North American vehicle pro- likely to seek court protection. duction in the first quarter — Whether or not a supplier falls about 250,000 vehicles — and local into Chapter 11 or liquidation suppliers will feel the brunt of the could be decided by the flexibility blow. of suppliers’ banks and other debt “We certainly expect a number holders with a supplier’s covenant of (supplier) Chapter 11’s to come conditions. into play over the next couple of While the GM production cuts months, even if one of the au- will surely stress local suppliers, tomakers doesn’t go Chapter 11, industry analysts agree that pres- which is still a possibility depend- sure is still a far cry from the falling on what the Treasury does,” out of a Detroit 3 automaker bank- said Jim Gillette, director of sup- ruptcy, plier analysis for CSM Worldwide, a Kriss Andrews, managing direc- Northville-based auto industry tor of the auto industry practice at consulting firm. BBK Inc. in Southfield, likens it to a “I would imagine that so many very large wave instead of a tsuna- of them are at the end of the rope mi. and would have to go Chapter 11,” Andrews also said that while it he said. will certainly pressure suppliers, Gillette says about 25 percent of GM’s announcement shows that the North American supply base is the automakers are getting better at risk of financial failure that at planning production levels that could yield a liquidation, a combi- fit the market. nation with another company or a “The production cut is a ratio- Chapter 11 filing. nalization,” he said. “There are Craig Fitzgerald, a partner and only so many cars you can push to auto analyst with Southfield-based the dealers.” Plante & Moran, agrees with the 25 CSM’s Gillette says his firm pro- percent figure — assuming there jects that 10.1 million cars and are roughly 4,000 suppliers in pickups will be built in North North America — but says those America in 2009, including GM’s failures will play out throughout cuts. the year. Compare that with the produc- But suppliers in metro Detroit could be hit harder because of a tion rates of more than 17 million higher concentration of Detroit 3 to start the decade. business with local suppliers. “When we say 10.1, that’s our “Whatever percentage Detroit best estimate based on everything makes up of those 4,000 (suppliers), we know right now. … Anything it would roughly be (25 percent), or could happen here as we speak maybe a bit more that end up in that could cause us to say it’s going bankruptcies and liquidations,” he to be lower or it’s not going to be as said. “The volume challenges the bad as we thought,” he said. Detroit 3 are having might hit a The speed with which the eco- Southeastern Michigan supplier a nomic outlook has changed has bit harder than average.” thrown even the most conserva- Fitzgerald also says there will be tive plans out the window. a pickup in bankruptcies and liq- “Nobody was prepared; we’ve uidations in the local supply base, been trying to keep up with it our- especially for highly-leveraged selves, and we’re in uncharted wa- companies that have a big GM ters right now.” share and weak collateral posi- “I don’t know of any company Meetings by Doubletree tions. … that had really understood that “This could be very bad times it was going to be this bad,” L]Zi]ZgndjgZkZci^haVg\ZdghbVaa!Vii]Z9djWaZigZZ;dgiH]ZaWn$9Zigdî9dlcidlc!lZ]VkZi]ZhZgk^XZh![VXâî^ZhVcY for them,” he said. Gillette said. ZmeZg^ZcXZidbV`ZîV]j\ZhjXXZhh#Lî]ildaZkZahVcYdkZg'&!%%%hfjVgZ[ZZid[Xdc[ZgZcXZheVXZ!i]ZcZl9djWaZigZZ But fates could be different for Ryan Beene: (313) 446-0315, d[[ZghVkVg^Zind[hZi"jedei^dchidbZZindjgWjh^cZhhcZZYh#BZZi^c\gddbh^cXajYZ^cY^k^YjVaXa^bViZXdcigdah!iVWaZh suppliers depending on their size. [email protected] lî]]VgYlgî^c\hjg[VXZh!*)^cX]A89eVcZahVcYl^gZYVcYl^gZaZhh>ciZgcZiVXXZhh#6aa^cXajh^kZ8dbeaZiZBZZi^c\ EVX`V\ZhbV`ZeaVcc^c\ndjgZkZciZVh^Zgi]VcZkZg#Ndj»aaZc_dni]Zhjeedgid[djgZmeZg^ZcXZYVcYViiZci^kZiZVbbZbWZgh l]dVgZYZY^XViZYidbV`^c\ndjgZkZci[aVlaZhh#L]Zcndj]VkZVcZkZciVii]Z]^hidg^XVa 9djWaZigZZ

Michigan’s 353 credit unions at $22 billion. Loans for used cars A Member of the Hilton Family of Hotels. added 17,000 members and grew grew by 4 percent, and loans for their loan portfolios by 2 percent new cars grew by 3.1 percent, for a *'*L#AV[VnZiiZ7akY!9Zigdî!B>)-''+ in the third quarter, according to total of $4.8 billion. GZhZgkVi^dch/&"-%%"'''"IG::=diZa9^gZXi/(&(.+("-.%% the Plymouth-based Michigan Cred- Business loans grew by 3.1 per- lll#YZigdîhjîZh#YdjWaZigZZ#Xdb

® ® it Union League. cent to $651 million. Hilton HHonors membership, earning of Points & Miles , and redemption of points are subject to HHonors Terms and Conditions. Membership is now more than ©2008 Hilton Hotels Corporation 4.4 million, with the loan portfolio — Tom Henderson 20081215-NEWS--0018-NAT-CCI-CD_-- 12/12/2008 6:21 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS December 15, 2008 Pickens to outline wind-energy vision LANSING — Texas en- Instead, natural gas, top five action issues identified by the end of the year, the bill would Short takes ergy magnate T. Boone currently used to pro- the business community at the 2008 be discharged and sent to the Pickens is coming this Capitol duce about 22 percent of Mackinac conference. floor,” said Andrew Doerr, San- Bills to pave the way for a pri- May to speak to some Briefings the nation’s electricity, The Detroit chamber was to an- born’s chief of staff. vately funded light rail loop on De- 1,700 of the state’s top could then be put to use nounce Pickens’ engagement on He said Sanborn’s office is con- troit’s Woodward Avenue passed business, community and as a transportation fuel Monday and also kick off an earlier- tinuing to work with the Michigan the state Senate early Thursday, political leadership. and reduce dependence than-usual opening of registration Liquor Control Commission and Michi- but now are tied to an unrelated The founder of Dallas- on foreign oil by more for the annual conference. Confer- gan Beer and Wine Wholesalers Asso- west Michigan project previously based BP Capital L.P. and than a third, according ence registration was to open Mon- ciation, as well as business inter- vetoed by the governor. The 11th- promoter of a plan to to the Pickens plan. day, although hotel registration ests that are concerned because hour attachment is a measure to re- wean “We think he’s an at- will not open until early February. the proposed ban would also affect store $3 million for converting for- the na- tractive speaker be- gift-basket shipping. mer Pfizer Corp. property in Holland into research facilities for Michigan tion Amy Lane cause his message will It appears that the bill will allow from be focused on energy in- Wine bill debate continues businesses that hold beer and wine State University — an issue Gov. Jen- dependence on dependence. And it’s a top goal for Discussions continue on a bill retail licenses to continue to do nifer Granholm vetoed in August. foreign oil will the state of Michigan to promote that would ban retailers from ship- catering. Shippers, however, were Legislators will have to work out outline his vi- and develop an alternative energy ping wine and other types of alco- among those continuing last week differences on the bills next week. sion for achiev- business sector,” said Sarah Hub- hol directly to customers, with just to raise opposition to the shipping Press Secretary Liz Boyd said ing energy inde- bard, vice president of government one scheduled day remaining for restrictions, with the Sacramento, Granholm soon will announce her pendence — and relations at the Detroit chamber. the Legislature to act. Calif.-based Specialty Wine Retailers selection for a six-year term on the Wayne County Airport Authority board. Pickens how Michigan “The fit, we think, is great and House Bill 6644 last week was Association presenting data that sug- can fit into that very timely, that he can talk about formally referred to the Senate gested few out-of-state wine stores Samuel Nouhan, a partner at Bow- strategy — at the Detroit Regional the importance of focusing on new Economic Development & Regula- would actually ship into Michigan man and Brooke L.L.P. in Detroit, and Chamber’s May 27-30 Mackinac Poli- industries and new technologies tory Reform Committee, chaired if the practice were allowed. Renee Pipis, president of Detroit- cy Conference. that can help us reach that goal,” by Alan Sanborn, R-Richmond. The House and Senate are only based government relations con- Pickens has advocated develop- she said. However, the committee is not scheduled to meet Thursday, be- sulting firm RCP Associates L.L.C. ing wind power in a corridor The chamber is still working on scheduled to meet again this year, fore ending work for the year. and a Blue Cross Blue Shield of Michi- stretching from Texas to North the agenda for the 2009 conference which leaves prospects for action Doerr said that if time runs out, gan board member, were named to Dakota, as part of a more than $1 but it’s possible that additional dis- in a committee discharge. Sanborn plans to continue to work six-year terms last week by Wayne trillion proposal in which wind cussions on alternative energy may “While the bill was sent to our on the issue and try to resolve it in County Executive Robert Ficano. power would replace natural gas occur in other conference venues. committee, if we are able to find the Legislature’s new session, Amy Lane: (517) 371-5355, used by power plants. Alternative energy was among the some kind of compromise before which starts in January. [email protected]

Endowment fund losses yet to hit state colleges’ operating budgets

Enrollment, state aid more pressing concerns LOSSES IN UNIVERSITY ENDOWMENT FUNDS Michigan colleges and universities of $239 million to about $208 BY CHAD HALCOM Next year, however, may be a ability to cover expenses, and UM have taken endowment hits from million Sept. 30. CRAIN’S DETROIT BUSINESS different story. has no plans to delay building pro- stock market declines in the wake Central Michigan University: Fell As the most invested institution, jects, discontinue endowment-fund- of the Wall Street lending crisis. from $82 million in mid-2007 to Southeast Michigan colleges the University of Michigan predictably ed department chair positions, im- Here’s how it has affected some of $52 million at the end of them: and universities have lost nearly took the heaviest losses. Adminis- pose a hiring freeze or raise tuition November. $2.5 billion in their collective in- University of Michigan: tration officials estimate UM’s $7.6 as a result of having less money. Eastern Michigan University: vestment portfolios since June 30, billion endowment fund balance fell “But we are putting a priority Endowment fell from $7.6 billion to between $5.4 billion and $6 billion Dropped from $46 million this in the wake of the Wall Street lend- $1.6 billion-$2.2 billion, between next year on tuition affordability between June 30 and early this summer to below $34 million in ing crisis and subsequent market June 30 and early December. for our students, even if that means late November. tumbles of the past few months. month. Phil Hanlon, vice provost of acad- financial aid from the endowment Grand Valley State University: Fell While the schools typically rely Michigan State University: Lost emic and budgetary affairs at UM, or other sources,” he said. from $64.3 million June 30 to on those investments to feed rev- about $280 million from a long- said endowment commitments are Investment income is one of sev- term investment fund that stood at about $48 million last week. enue to their operating budgets and computed based on a 28-quarter or en main revenue sources for UM’s about $1.4 billion on July 1. Fell from projects, most do not expect the lost Oakland University: seven-year rolling average of the operating budget of $2.2 billion for Fell 13.1 $50 million on June 30 to $37 value to affect business this acade- Wayne State University: fund balance. A few quarters of de- the 2008-09 academic year. The uni- percent from its fall 2007 balance million on Nov. 30. mic year. pressed value would not affect its versity also has about $2.2 billion in cash pool investments outside of working capital, with a balance pay the university, but lost their the endowment, but reports those around $200 million, lost 4 percent resale value and looked like a po- have not been much affected. of principal or so to date, he said. tential loss until Comerica agreed Notice of Bidders Conference University officials estimate 8 But MSU also computes the allo- in October to buy them back. percent or so of revenue comes To Acquire Sebille Manor cations from its endowment over 20 EMU also lost about $500,000 from allocations from the endow- quarters, or five years. Klein said from its nearly $300 million budget Chesterfield Township ment plus other investment funds. there are no immediate plans to when the interest rate climbed on Macomb County, MI About $280 million may have change contributions from MSU’s bonds it had sold, but Lumm said been lost to Michigan State University investments to its budget. the most pressing concern is since June 30, between its endow- University officials said they gen- whether a fall enrollment drop of 3 A Bidders Conference will be held at the Township Hall on ment fund and a medium-term in- erally fear a more direct impact on percent or so will continue. January 6, 2009 from 9 to 11 am to provide information to vestment fund it manages for work- budgets from loss of enrollment or At Oakland University, the endow- Interested developers and the bidding public to acquire the 102 ing capital, according to Glen Klein, state aid. UM’s state funding has ment fund balance fell from $50 mil- director of investments and finan- fallen from $363 million in 2002 to lion on June 30 to $37 million on acre parcel. Join the Army, GSA, and the local LRA as they cial management. $327 million this academic year, Nov. 30, but vice president of fi- prepare to offer the property for sale through an invitation for At the start of the current fiscal and Wayne State University has a hir- nance and administration John Bids process via an online auction format. Tours of the year on July 1, about $1.4 billion ing freeze instituted after a nearly 6 Beaghan said the fund makes dis- was collected in a long-term in- percent decline in students this fall. bursements on a 12-quarter average Property will be held immediately following the Bidders vestment fund for MSU. More than Eastern Michigan University re- and can weather a couple of de- Conference. 90 percent of the fund was the uni- ported two financial hiccups from pressed quarters. Beyond mid-2009, versity’s endowment, with a small the market collapse over the fall. however, the average could change General Services Administration portion invested by an MSU em- Its endowment dwindled from $46 and affect spending. Property Disposal Division ployee pension plan. million over the summer to slight- The university still expects to 10 Causway Street As of Sept. 30, the fund had lost ly below $34 million in late Novem- contribute $22 million toward a $62 $150 million or so, and Klein said it ber, and it became concerned million construction cost for a new Boston, MA 02222 may have lost 19 percent or up to when $70 million of auction-rate Human Health Building, with the 617.565.5700 $275 million as of December, based securities it had purchased from remaining $40 million coming out www.auctionrp.com on partial reporting from its vari- Comerica Bank couldn’t be sold. of state aid. ous investments. Another medi- Interim CFO John Lumm said Chad Halcom: (313) 446-6796, um-term investment fund for those funds were continuing to [email protected] 20081215-NEWS--0019-NAT-CCI-CD_-- 12/12/2008 5:12 PM Page 1

December 15, 2008 CRAIN’S DETROIT BUSINESS Page 19 For some retailers, ’tis already the season T gm_`lae]k[Ydd^gj l]f\]jkl]Yc Yf\dgZkl]j!& for deep discounts

BY NANCY KAFFER Some retailers are straddling CRAIN’S DETROIT BUSINESS the fence, or using selective discounts to further purchases. All of the winter merchandise in “The magic sign is buy one, get Lois Levenson’s West Bloomfield 50 percent off,” he said. “They’re store is marked down. saying they’re willing to sell it for This week, outerwear at Guys N less, hoping that you buy more, Gals is 50 percent and 40 percent and between the two, I hope I’ll off, and Levenson recently e- meet you in the middle.” mailed an additional 20 percent off At Don Thomas Sporthaus in coupon to customers in her data- Birmingham, manager Hans Erni base. is rotating a 20 percent discount “In a normal year, we would weekly by brand or category, plus have a small sale at Thanksgiving a 55 percent discount on certain weekend, but we normally don’t items, as a tie-in with the store’s mark down January right after 55th anniversary. holidays,” said Levenson, who has “We’re not interested in taking a been in business 34 years. loss at this point, but we’re also at “The usual markdown would be the point we’re trying to create 20 to 50 percent off, then 70 per- business,” he said. cent, then to charity. We started Nationally, the discounting our sale much earlier because we trend has two opposing strategies, saw the trend, and we have to keep Nisch said, with luxury retailer up with everybody else. We had to Saks Fifth Avenue offering dis- stay ahead of the game to stay in counts on designer items, formerly Kl]YcYf\Klm^^]\DgZkl]j+1&1- the game.” verboten. @iejt\1ju)Øg`o\i_gj]no`mo\dgnop`_rdoceph]jgphk^m\]\i_c`m]^c``n`) Levenson is among a growing “They’ve said we’re going to get number of retailers slashing ahead of this, do everything we Ljgqt *,0&*.1&0,*, prices in an attempt to boost traffic can do not to give up market share and bolster a worrisome holiday but to gain market share, so we’re YnYadYZd]YlhYjla[ahYlaf_dg[Ylagf^gjYdaeal]\lae]& shopping season, breaking with going to do discounting in what tradition by had been forbid- deeply discount- den territory,” ing merchandise he said. “On the before Christmas. The magic sign other end is “There are two “ (clothing and ways people are is buy one, get 50 accessories re- playing this percent off. They’re tailer) Abercrom- game,” said Ken bie & Fitch, who Nisch, chairman saying they’re has said, this of Southfield- tarnishes the based retail con- willing to sell it for brand, we sell it sultancy JGA Inc. for what we sell “Keeping the mar- less, hoping that you it and if we sell gin, selling less, less, we sell and believing that buy more. less.” this is the best ” Another dri- ver in the need strategy. But oth- Ken Nisch, chairman, to discount, ers say that retail consultancy JGA Inc. they’ve got no Nisch said, is a choice. They’re decline in gift marking down, and will deal with card sales, indicating a rocky post- the consequences later.” holiday shopping season. It’s a balancing act, Nisch said, “Gift card sales down 30 to 40 as retailers weigh the conse- percent,” he said. “And people are quences of selling more goods at a saying that if gift cards are de- lower price versus selling fewer, pressed that much, we can’t afford but more costly, items. to be stuck with things in January. “They’re hoping to end up in a Better to sell at 20 percent off and place that I can almost come out 40 percent off than 70 percent off in whole if I get you to buy more,” he January, when there’s not a gift said. card there to suck up excess.” In October, 42 percent of retailers So far, deep discounts are work- surveyed in the Michigan Retail In- ing at Guys N Gals. Levenson said dex reported a decrease in sales sales year-to-date are north of from the same month last year. In $750,000, commensurate with last September, 45 percent reported that year’s results. sales had dropped from 2007. And Erni said business has been Though sales on Black Friday — steady at Don Thomas — revenue the day after Thanksgiving, when for stores owned by Summit Sports retailers traditionally make it into Inc., Don Thomas’ parent compa- the black for the year — exceeded ny, is at $11 million year to date, expectations, some industry comparable to last year’s sales. watchers are worried that aggres- But like national retailers, local sive price cuts mean cash-strapped store owners are wondering how shoppers will only buy when dis- this atypical holiday shopping sea- counts are offered. son will affect January sales. On the flip side, Nisch said, re- “What will January look like?” tailers and brands that don’t offer Erni said. “That’s a very good discounts may seem insensitive to question.” potential customers’ economic Nancy Kaffer: (313) 446-0412, woes. [email protected]. 20081215-NEWS--0020-NAT-CCI-CD_-- 12/12/2008 6:59 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS December 15, 2008 MEGA: Fourteen proposed projects total $921 million ■ From Page 1

generator systems, beginning with contacts in manufacturing and the create 475 jobs in five years at an in Farmington Hills and create 58 ment of the Detroit Creamery its first site in an office park in supplier community.” axle plant in Marysville being direct jobs. It is requesting Building in Detroit into luxury Novi. It is requesting a $7.3 million The largest investment on the built by Chrysler L.L.C. $875,000 in tax credits. residential by Golden Rectangle state tax credit over nine years. agenda, a projected $520 million, is ZF plans to lease part of the Novixus L.L.C., a mail-order and L.L.C. Requesting $5 million in tax Global Wind Systems proposes for new steel-making capabilities plant and invest about $143.4 mil- Internet prescription company, credits, the project will generate to reach break-even cash flow at Severstal North America Inc.’s op- lion in return for a 100 percent plans to invest $3.4 million in $38 million in new development. within its first six months of oper- erations in Dearborn. standard employment tax credit Novi, creating 192 direct jobs. It is Scripps Park Associates L.L.C. ation, making and selling the tur- Severstal plans to spend $245 for 10 years for 475 employees, as requesting a seven-year, $3.1 mil- will invest $37.7 million to redevel- bine systems to wind farm devel- million to construct a hot dip gal- long as ZF adds 325 new jobs at the lion tax credit. op an abandoned public housing opers at $2.4 million per unit. vanizing line and invest $275 mil- plant by the end of 2011. Northern United Brewing L.L.C., a development in Detroit into 180 Long, president and CEO, said lion to build an upgraded tandem Auto supplier Faurecia will in- startup microbrewery, plans to in- townhouses and requests $5 mil- he plans to set up production in- cold mill and pickling line. vest $8.8 million to expand its Fras- vest $5.8 million, in Ann Arbor, lion in tax credits. side a former Husky Injection In return for the investment and Dexter and Plymouth Township, Maple Shoppes Development, an Molding Systems building in Novi expected retention of 76 jobs, state er operations, creating 82 direct creating 158 direct jobs. It’s re- Ann Arbor retail project, will gen- and sell primarily to developers of Brownfield Redevelopment staff jobs. It is requesting an eight-year, new farms in Wisconsin, Indiana, are recommending approval of a $704,000 tax credit. questing $931,000 over eight years. erate $8 million in new investment Ohio, Illinois and Michigan. MEGA MBT Brownfield Redevel- Home health-care company Brownfield redevelopment re- and seeks $589,000 in tax credits. “There is something like a 20,000 opment Credit of 12.5 percent of el- FKA Distributing (dba HoMedics) will quests are being submitted for: Greater Detroit Hospital, a De- unit backlog of production on igible investments for both pro- invest $11 million in Commerce 601 Forest L.L.C., a 14-story troit medical office and assisted these turbine systems,” he said. jects, with a $30 million cap for the Township, creating 62 direct jobs. mixed-use project in Ann Arbor. living development, seeks $1 mil- “The developers who have ap- galvanizing line and $10 million It is requesting a seven-year, $1.1 Developers are requesting $10 million in tax capture and expects to proached my company are inter- for the cold mill and pickling line. million tax credit. lion in tax credits and $4.7 million generate $8.9 million in invest- ested in lining up a new manufac- Also on the MEGA agenda: Kongsberg Automotive, a mo- in tax capture paired with $82.8 ment. turer rather than add to the ZF Group North American Opera- tion control and seat system sup- million in investment. Chad Halcom contributed to this backlog, and we have plenty of tions Inc., Northville, expects to plier, plans to invest $4.4 million 1015 Spruce, the redevelop- story.

Fund: Renaissance closes first round of $40 million, invests ■ From Page 1

and they understand the Midwest really with the announcement that Rizik was join- a miracle.” well.” ing the Detroit Renaissance fund. Nine area companies contributed to the Tim Petersen, a managing director at Ar- Rizik said the tough time for venture cap- To me, as a native first close. Valenti said they have requested boretum, declined to comment on the in- italists nationally may have a benefit for the “ anonymity, given the current economic cli- vestment because of U.S. Securities and Ex- Renaissance fund and the state. He said he Detroiter, this is mate. Several of them have been involved in change Commission regulations prohibiting has had 16 applications for money, eight of layoffs and were worried about the percep- public discussion during fundraising. Ar- those from out-of-state firms willing to in- quintessential Michigan. tion of making big investments while cut- boretum, which began raising money in late vest here if they can get ting back on personnel, even though invest- 2006, is expected to complete its fundraising funding. We never gave up. I can’t ments in the fund don’t involve new by the end of the year. “We’re really excited,” allocations by companies, but a diversion of “It’s been a good week. It’s great news; said Renaissance Presi- imagine a more difficult money from their other investments. we’re up and running,” said Rizik. “It’s a dent Doug Rothwell, who time. One of the companies is believed to be a very difficult time for people to be fundrais- announced the fund, ” member of the Detroit 3, worried about ing. You’d have to say that with what’s hap- which also involves Troy- repercussions in Washington of announc- Sam Valenti, Valenti Capital pened the last three months, it would have based Automation Alley ing a major new investment while automak- been very easy for those who had committed and Ann Arbor Spark, in ers seek billions of dollars in loans. to de-commit. That wouldn’t have been sur- June 2007. At the time, he wealthy families, and executive chairman Previously, Crain’s had reported verbal prising. That they didn’t speaks to their said he hoped to have a Rothwell of Bloomfield Hills-based TriMas Corp. commitments from Detroit-based Blue Cross commitment to the region.” close for the fund by the Terry Cross, executive-in-residence for Blue Shield of Michigan, Detroit-based DTE En- Rizik said he will begin calling on pen- end of the year and to begin investing in the entrepreneurship at Wayne State University ergy Co. and Taylor-based Masco Corp., al- sion funds, foundations and university en- first quarter this year. and a veteran angel investor whose though verbal commitments made months dowments and hopes to have a second close “It took a long time to get here. There Rochester Hills-based Windward Associates ago didn’t necessarily translate into partici- of $40 million to $60 million in the next nine were probably a lot of people who were sur- L.L.C. advises startup firms and helps them pation in the actual close. months. He said he hopes to make a second prised we got here at all. To pull it off in this get funding, admits he was one of those Neither Valenti nor Rizik would confirm investment during the first quarter of 2009. environment, we feel really proud,” he said. doubters. for the record any investor except for the Rizik knows firsthand the difficulty of “To me, as a native Detroiter, this is quin- “A lot of people had doubts. I know they Troy-based eastern region of Huntington raising money in this economy. In Septem- tessential Michigan. We never gave up. I had commitments but, frankly, a lot of peo- Bank, which made the first commitment to ber, he and partner Rick Snyder announced can’t imagine a more difficult time, and I ple thought those commitments would evap- the fund in July 2007, two installments of they were pulling the plug on Ann Arbor- can’t say enough about our partners,” said orate in this economy. It says a lot for Sam $2.5 million each as the fund hit certain based Ardesta L.L.C.’s second fund of $100 fund chairman Sam Valenti III, chairman and Chris and Doug that they could get a thresholds. million after fundraising stalled out about and CEO of Bloomfield Hills-based Valenti close,” said Cross. “I’ve got nothing but con- Tom Henderson: (313) 446-0337, thender- halfway. That announcement was paired Capital L.L.C., an investment manager for gratulations for those guys. They performed [email protected]

Henry Ford: Hospital files to transfer 40 beds BANKRUPTCIES ■ From Page 3 The following businesses filed for Chapter 7 or 11 protection in Henry Ford COO Robert Riney said admis- Earlier this year, Henry Ford began a $10 sions and modern furniture. Another six are U.S. Bankruptcy Court in Detroit Dec. sions have flattened this year as patients have million technology and quality improvement under construction, Allar said. 5-11. Under Chapter 11, a company put off elective surgeries, primarily because of program to convert Cottage from an outpatient Allar said Cottage recently purchased a 64- files for reorganization. Chapter 7 the economic downturn. facility to an inpatient specialty hospital, said slice computerized tomography (CT) system involves total liquidation. “We are not entirely sure what the ultimate Cottage COO Denise Allar. and opened four ORs and two procedure rooms. Feather Your Nest Antiques, L.L.C., “We are on a journey with Cottage,” Riney mix of volume will be at any of the facilities,” “We offer orthopedic, urology, retinal and gy- 10970 Ford Road, Ypsilanti, volun- said. “We are creating a boutique type of envi- tary Chapter 7. Assets: $117,458; li- he said. “Our goal is to increase volume.” necological surgery,” Allar said. “Before, surgi- ronment with medical-surgical, a contempo- abilities: $22,824. With reimbursements from private and pub- cal services were ambulatory.” lic payers barely covering costs, and numbers rary ER, focused women’s health, orthopedic Whyco Finishing Technology, L.L.C., Cottage also features a 24-bed rehabilitation of the uninsured and the underinsured rising, services, senior services and ambulatory 6565 East Nevada St., Detroit, vol- inpatient unit and 36-bed behavioral medicine Schlichting said most hospitals need to in- surgery.” untary Chapter 11. Assets and lia- crease admissions to earn sufficient profit mar- So far, 14 private rooms have been renovated unit. bilities not available. Jay Greene: (313) 446-0325, [email protected] gins. into home-like settings with flat-screen televi- — Compiled by Julie Dawso 20081215-NEWS--0021-NAT-CCI-CD_-- 12/12/2008 6:58 PM Page 1

December 15, 2008 CRAIN’S DETROIT BUSINESS Page 21

Projects: Michigan has a list to present to Obama www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] other state in the country is going Carmine Palombo, SEMCOG’s di- MANAGING EDITOR Andy Chapelle, (313) 446- to go in — and say we can help to rector of transportation programs. 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette put this country’s economy back In addition, he said transit oper- Detroit wants help for Smith, (313) 446-1622 or [email protected] on the right footing, put the state’s ators are submitting projects to BUSINESS LIVES EDITOR Michelle Darwish, (313) 446-1621 or [email protected] economy back on the right footing update buses and make them more COPY DESK CHIEF Gary Piatek, (313) 446-0357 with projects such as these. fuel-efficient, and SEMCOG is sub- or [email protected] GRAPHICS EDITOR Nancy Clark, (313) 446-1608 “I think we can make a pretty mitting projects to buy locomo- or [email protected] water, sewer improvements COPY EDITOR Vic Doucette, (313) 446-0410 strong case.” tives for an Ann Arbor-to-Detroit or [email protected] Last week, state Budget Director passenger rail service and related BY ROBERT ANKENY terceptor, he said. DATA EDITOR Anne Marks, (313) 446-0418 or Robert Emerson said the adminis- track construction. [email protected] CRAIN’S DETROIT BUSINESS Wayne, Oakland and Macomb WEB GENERAL MANAGER Alan Baker, (313) 446- tration has been developing a list According to the American Asso- counties and the city of Detroit 0416 or [email protected] WEB EDITOR Christine Lasek, (313) 446-0473, of Michigan infrastructure pro- ciation of State Highway and Trans- The Detroit area hopes to per- could present a united voice in [email protected] jects for the governor’s Washing- portation Officials, which surveyed suade Washington to help pay WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) seeking funds for these projects 446-0403, [email protected] ton office. state transportation departments, for some of the Detroit Water and as they reach agreements on dis- RESEARCH ASSISTANT Joanne Scharich, (313) The initial list was in excess of Michigan has 208 projects totaling Sewerage Department’s capital putes that have divided them in 446-0419 EDITORIAL SUPPORT Anita Duncan, (313) $17 billion and is being whittled $1.75 billion that could be under improvement needs in Michi- the long-running pollution law- 446-0329 down. contract within 180 days if funding gan’s pitch for funds from the NEWSROOM (313) 446-0329, FAX (313) 446- suit before U.S. District Judge 1687 TIP LINE (313) 446-6766 Liz Boyd, Gov. Jennifer were available. Obama administration’s infra- John Feikens. REPORTERS Granholm’s press secretary, said The Michigan Department of structure investment and eco- Part of the proposed agree- Robert Ankeny: Covers the city of Detroit, Wayne the administration is “looking Transportation last week did not nomic recovery plan. ments, which could be finalized County government, and law. (313) 446-0404 or across state government at the provide examples of projects by “It’s an opportune time,” said this week, said court-appointed [email protected]. Ryan Beene: Covers auto suppliers, steel. (313) types of infrastructure projects Crain’s deadline. M-DOT director Chuck Hershey, manager of en- special master F. Thomas 446-0315 or [email protected] that meet the president-elect’s of communications Bill Shreck vironmental programs at the Lewand, would see future dis- Daniel Duggan: Covers real estate and hospitality. ready-to-go guidelines,” but she said the department is “trying to Southeast Michigan Council of Gov- (313) 446-0414 or [email protected] putes handled out-of-court by Jay Greene: Covers health care, insurance and the did not divulge specific examples. identify which projects we can ernments. three levels of review. environment. (313) 446-0325 or The Southeast Michigan Council of move so that we’re ready. It’s an Hershey said currently these [email protected]. First, a technical committee Chad Halcom: Covers education, non-automotive Governments is communicating to opportunity we don’t want to lose projects can only get loans would try to resolve differences. manufacturing, defense contracting and Oakland which must be repaid by bor- and Macomb counties. (313) 446-6796 or the federal government, congres- out on.” Then, disputes would go to a [email protected]. sional offices and others, a list of Mike Nystrom, vice president rowing from a state revolving council composed of three coun- Tom Henderson: Covers banking, finance, fund, but the federal funding technology and biotechnology. (313) 446-0337 or projects on its ongoing transporta- of government and public affairs ty drain commissioners, the [email protected]. tion improvement program. for the Michigan Infrastructure & could come as outright grants. DWSD director and the chair- Nancy Kaffer: Covers small business and retail. The list’s 2009 year contains Transportation Association, said This has caused many projects (313) 446-0412 or [email protected]. man of the court-appointed con- Bill Shea: Covers media, advertising and about $500 million in road resur- Michigan has “regularly been cit- to be deferred, Hershey said, sortium. marketing, entertainment, the business of sports, which is becoming critical be- and transportation. (313) 446-1626 or facing and reconstruction, bridge ed as having some of the worst Finally, formal alternative [email protected]. rebuilding and other types of pro- roads in the nation … and this is cause, as taxable property val- dispute resolution would be ini- Nathan Skid: Multimedia reporter. Also covers the jects that have gone through supposed to be an economic stim- ues decline, “the ability to pay is tiated before any differences food industry. (313) 446-1654, [email protected]. Sherri Begin Welch: Covers nonprofits and analysis and design and could be ulus plan. There are very few worsening compoundedly.” were brought to court. services. (313) 446-1694 or [email protected] under contract states that can make the case any Included are two massive wa- Nearly settled by the parties LANSING BUREAU Amy Lane: Covers business issues at the Capitol, within six better than Michigan can, in ter overflow projects, the $900 are multimillion dollar disputes telecommunications and utilities. (517) 371- months, if fund- terms of needing jobs and eco- million Upper Rouge Tunnel and 5355, FAX (517) 371-2492, [email protected]. or over the costs of an 800-mega- 115 W. Allegan, Suite 220, Lansing 48933. ing becomes nomic stimulus, immediately.” the $400 million Detroit River hertz radio system and repairs ADVERTISING available. However, both Nystrom and outfall, Hershey said. of the collapsed interceptor sew- ADVERTISING DIRECTOR Marla Downs, (313) “These, we Shreck said whatever aid comes Also ready to go when funding er in Macomb County. 446-6032 or [email protected] can hit the deck Michigan’s way will not fix the is found is additional work on SALES INQUIRIES: (313) 446-6052; FAX (313) Robert Ankeny: (313) 446-0404, 393-0997 running real state’s overall transportation needs. the Oakland-Macomb sewer in- [email protected] ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, quick,” said A public-private task force re- Cathy Ross, Dale Smolinski SEMCOG Exec- cently concluded that state invest- farm and school demolition and U.S. Rep. Candice Miller, R-Mt. WESTERN ACCOUNTS Ellen Mazen (Los Angeles) utive Director ment in all modes — including avi- construction in Taylor; water and Clemens, who sits on the commit- (323) 370-2477 Tait CLASSIFIED ACCOUNT EXECUTIVE Greg Paul Tait. ation, roads, and intermodal rail road projects in Westland; and tee, said infrastructure invest- Evangelista, 313-446-1655 Tait said that in terms of eco- passenger and freight — needs to water/sewer work as well as wind ment is “going to be happening, MARKETING MANAGER Irma Clark nomic stimulus, spending money rise from a current $3.57 billion to power and solar panel projects on and we need to do everything we EVENTS MANAGER Nicole LaPointe MARKETING PROJECTS MANAGER Jennifer Dunn on infrastructure goes farther at least $7.17 billion. government buildings in Grand can to get our fair share.” MARKETING ARTIST Sylvia Kolaski than sending small checks to indi- Transportation isn’t the only Rapids. There are also concerns that the SALES SUPPORT Suzanne Janik, Andrea vidual taxpayers. area in need of infrastructure in- Nearly every Southeast Michi- transportation money will go to Beckham, YahNica Crawford CIRCULATION Candice Yopp, Manager. “I think putting money into investment. gan city that participated in the states by means of existing fund- PRODUCTION MANAGER Wendy Kobylarz frastructure, where you get a two- A recent United States Confer- U.S. Mayors’ survey also cited ing formulas, in which Michigan PRODUCTION SUPERVISOR Larry Williams, for — you put people to work and ence of Mayors survey that inven- street and road improvements that is considered a “donor” state and (313) 446-0301 you rebuild the infrastructure — toried mayors’ local ‘ready-to-go’ were needed. gets back 92 cents of every $1 sent CUSTOMER SERVICE MAIN NUMBER: Call (888) 909-9111 or write just makes infinite sense,” he said. projects, cites Michigan projects U.S. House Transportation and to Washington. Miller suggests [email protected] The 83 road and bridge projects that include: new buses, street Infrastructure Committee Chair- that different criteria, such as un- SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. on SEMCOG’s first-year list in- lighting and city airport improve- man James Oberstar, D-Minn., has employment, be used. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or clude a $10 million widening of ments in Detroit; intermodal rail recommended to House Speaker “If anybody needs the money, it’s (888) 909-9111. Rochester Road in Oakland Coun- passenger station work, hybrid Nancy Pelosi a $45 billion infra- Michigan,” she said. “If it’s truly an SINGLE COPIES: (888) 909-9111 or contact ty, a $3.2 million installation of a vehicles, street lighting and wind structure proposal that includes economic stimulus, you’ve got to Karen Boykin, [email protected]. REPRINTS: Call (800) 494-9051, Ext. 144 , or center turn lane on Nine Mile turbines in Dearborn; a regional $18 billion for highways, $6.5 bil- look at a state like Michigan, and write [email protected]. Road in Macomb County, and an 911 call center in Southgate; pub- lion for transit, and other spend- you should change the criteria.” TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected]. $800,000 widening of Huron Park- lic-safety and water improve- ing such as water, airport and pas- Amy Lane: (517) 371-5355, way in Washtenaw County, said ments in Sterling Heights; a wind senger rail projects. [email protected] CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain SECRETARY Merrilee Crain TREASURER Mary Kay Crain Executive Vice President/Operations William A. Morrow Group Vice President/Technology, Digital TV: Manufacturing, Circulation Businesses see a spike in converter sales Robert C. Adams Vice President/Production & Manufacturing ■ From Page 3 Dave Kamis Corporate Director/Circulation were completely unready. proved boxes. needs a converter box. The public-awareness campaign Patrick Sheposh Houston was the nation’s most Sixteen million coupons have Televisions will either show a about the transition has gone well, G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) unprepared city, with nearly 16 been redeemed out of 40 million re- green “pass” or red “fail” screen based on survey results, White EDITORIAL & BUSINESS OFFICES: percent of households unable to requested through Dec. 10, according during the test. Failure messages said, but acknowledged that the fi- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) ceive digital signals. Fort Myers, to www.dtv2009.gov, the U.S. gov- will tell set owners where to get de- nal weeks before the switch will be 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET Fla., was most ready with a U.S.- ernment Web site dedicated to the tails on how to ensure their set can tense for the television industry. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is low 2.4 percent unprepared rate. coupon program. receive digital signals. “Getting millions of people to do published weekly except for a double issue the second week in August by Crain Communications The federal government is pro- An increase in coupon requests is A similar one-time test in Ari- the same thing by a specific dead- Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. viding $40 coupons through a $1.3 expected once local compatibility zona prompted 13,000 calls in three line is very difficult,” she said. “A Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address billion program to offset cost of the tests commence: Starting Tuesday hours, said Karole White, presi- certain number of people will wait changes to CRAIN’S DETROIT BUSINESS, Circulation boxes, which range in price from and then every Tuesday through dent and CEO of the Lansing-based until their television screens go Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. $40 to $70. Households can request Feb. 17, Detroit’s TV stations will Michigan Association of blank.” Entire contents copyright 2008 by Crain two coupons and redeem them at run 60-second tests to allow set own- Broadcasters, a nonprofit trade Bill Shea: (313) 446-1626, Communications Inc. All rights reserved. Reproduction or use of editorial content in any stores selling the government-ap- ers to determine if their television group. [email protected] manner without permission is strictly prohibited. 20081215-NEWS--0022-NAT-CCI-CD_-- 12/12/2008 7:01 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS December 15, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF DEC. 6-12

no one’s bought any Lions chairs, the company said, Bush steps in K-Dow delays but two Detroit Pistons- themed recliners have sold. Sales leaders are New to prevent York (Giants, Jets and Yan- HQ pick, will kees), Texas (Dallas Cowboys and University of Texas Long- Detroit 3 horns) and Ohio (Cleveland open anyway Browns and OSU Buckeyes). collapse plastics joint ven- validity of either proposal. Photonix makes CSI debut ne day after the fail- ture of Midland- In a statement Friday, ure of emergency Tonight, viewers of “CSI: O legislation in Con- A based Dow Chemical Dow suggested the search Miami” will see the handi- gress, the Bush administra- Co. and a Kuwaiti govern- parameters remained fairly work of a piece of high-tech ment-controlled company broad. tion said Friday it would equipment made by Ann step in to try to prevent the officially opens for business “Our area of focus re- Arbor-based Advanced Pho- STAR TREK EXHIBIT COMING in a few weeks, but won’t of- mains the corridor of I-94, I- collapse of the U.S. domes- tonix Inc. (Amex: API). A 9,000-square-foot Star Trek exhibit featuring the bridge of ficially have a headquarters 275 and I-96,” the company tic auto industry. The device, called the T- the USS Enterprise from the original 1960s TV series will for another few months. said. “Key criteria include Officials said no deci- Ray 4000, uses terahertz sions had been made on the open Feb. 14 at the Detroit Science Center. Officials say the Noticeably absent from building size, total cost, lo- touring exhibition contains the world’s most comprehensive wavelengths to create 3-D size or duration of a new the list of economic devel- cation, and qualitative cri- collection of authentic Star Trek ships, set re-creations, opment incentive proposals teria such as the building’s images of things below the rescue plan for the Detroit costumes and props from five television series and 10 films (See story, Page 1) awaiting features and aesthetics.” surface of an object. For ex- 3, the Associated Press said. over the past 41 years. Tickets go on sale Friday, approval on Tuesday before ample, the device has One option under consid- www.detroitsciencecenter.org. helped NASA look for flaws eration involved billions of the Michigan Economic decade to design and build ficial after Mike Flanagan, Recliners sport team logos in foam insulation on the dollars originally ticketed Growth Authority was K-Dow and will host an interna- state superintendent of external fuel tank of the for the bailout of the finan- Petrochemicals, which be- Mortgage and pro basket- tional community of about public instruction, on Mon- space shuttle. cial industry. President gins operations Jan. 1. Dow ball tycoon Dan Gilbert’s lat- 100 scientists, postdoctoral day declared the school dis- has sold 50 percent of its es- est side project is leather Advanced Photonix has- George W. Bush had previously argued that money associates and graduate trict is in a financial emer- tablished Basic Plastics di- pro and college team logo n’t, however, been told how students. gency. The board said it vision to Petrochemical In- recliners the T-Ray will help crime was off-limits. Also: would fight state supervi- dustries Co., a subsidiary of sold investigators solve this sion, the AP reported. Kuwait Petroleum Corp. in through week’s murder. Crain Communications JOBS/CONTRACTS Inc. Chairman Keith Crain Three local HMOs are Kuwait City. his Livo- Greektown Casino is hir- told the Detroit Economic ranked in the top 50 nation- Dow has said it would an- nia-based ing 150 workers for its new BITS & PIECES Club on Wednesday that De- ally, according to U.S. News nounce a headquarters lo- Fathead hotel, The Detroit News re- troit will become the & World Report’s America’s cation in Southeast Michi- L.L.C., Edward Deeb ported. , president world’s center of automo- Best Health Plans in 2008: gan by year’s end, pending which is Troy-based Emcon Tech- and CEO of the Michigan tive intelligence, defined Priority Health, Farmington approval of incentives un- known for nologies L.L.C. will supply Food and Beverage Associa- less by manufacturing and Hills; HealthPlus of Michigan, der discussion with the its life- cold end exhaust systems, tion, received the Neal more by engineering and Troy; and Health Alliance size wall stickers of players and Auburn Hills-based Sat- Michigan Economic Develop- Shine Lifetime Achieve- design, if it can get through Plan of Michigan, Detroit. and logos. urn Electronics & Engineering ment Corp. But this week’s ment Award from Operation this economic crisis. Attorney Hugh Davis Jr., Even in an economy that Inc. will supply solid state MEGA meeting, sans K- Able of Michigan. Deeb, 72, He said a government-led representing Wayne County rivals the Detroit Lions’ suc- electronics modules for a Dow, is the last of the year was honored for 45 years as restructuring at the guid- Commission Chair Jewel cess on the field, the new new midsize sedan to be Ware, said the FBI is investi- and media relations direc- an association executive, ance of a “car czar” could tor David Winder said an an- business is showing made at Volkswagen’s new gating claims she put felons and an industry and com- provide the type of changes nouncement has been de- promise: the company sold plant in Chattanooga, Tenn. on the payroll so they could munity leader. needed to position the com- layed. nearly 100 chairs in its first Campbell-Ewald, War- work at a bar and motel “Making Music with panies for success without “That decision will now 30 days, and expects to hit ren, has lost the creative owned by her husband, The the DSO,” a half-hour be- the dangers of bankruptcy. come in first quarter 2009,” 200 by year’s end. and media work for Farmers News reported. hind-the-scenes view of the he said. “And we are still The “DreamSeat” reclin- Insurance Group to Richards Aeromexico will stop its continuing to work closely er has a team logo embroi- Detroit Symphony Orchestra Lawmakers approve Group, Dallas, but picked up thrice-weekly flights from with the MEDC.” dered on it while the “XZip- hosted by music director Granholm’s spending cuts restaurant Buffalo Wild Metro Airport to Monterrey The Visteon Village prop- it” recliner has a removable Leonard Slatkin, debuts Jan. Wings in November, Adver- and Mexico City Jan. 9, The erty in Van Buren Town- logo that allows the chair to 3 on WTVS-Channel 56. State lawmakers ap- tising Age reported. News reported. ship and the Motorola look like it belongs in a liv- Another show on inves- proved $145.7 million in re- St. Joseph Mercy Health Building in Farmington ing room and not in a tigative science dubbed “The ductions to Michigan’s bud- OTHER NEWS System in Ann Arbor has Hills were two leading con- teenage fan’s dream. Think Squad,” will be shot get Wednesday after Robert launched a major branding Rochester Hills-based tenders for the site as of A Detroit Lions logo at the Detroit Science Center Emerson, Gov. Jennifer campaign with radio, print Granholm’s budget director, Precision Parts International early November, but DreamSeat is $999 while the and at YouthVille Detroit’s new and outdoor billboard ad- submitted an executive or- L.L.C. filed for Chapter 11 vertisements and added St. Winder said the company XZipit is $799. television studio and is ex- der proposing the cuts. bankruptcy protection Fri- Joseph Mercy Oakland Hospi- has not commented on the Much like game tickets, pected to air in May. The order includes: $40 day in Delaware. tal, Pontiac, and St. Joseph million in program and pol- The company said in a Mercy Port Huron, formerly icy cuts, including the clo- motion that falling sales for Mercy Hospital, to its four- sure of a state prison in Io- domestic manufacturers, hospital regional network. nia, a prison camp in increasing steel prices and Rumored shifts from Recipes for change in businesses large and small Coldwater, and the Adrian other factors have com- paper to online publication Training School for youth of- bined to cut revenue. and further job cuts at the Detroit’s Downtown De- With all the political wrangling going Set your browser to fenders; $29 million in re- Detroit Free Press and the on in Washington, it was easy to www.crainsdetroit.com/multimedia. stricted revenue reduc- velopment Authority ap- partnership that controls proved $2.5 million in state- miss this. Later this week, we’ll have some tions; and $10 million in its shared business func- Last week, Crain Communications video that will be educational, but administrative cuts in de- funded grants to demolish tions with The Detroit News Inc. Chairman Keith Crain said could also be delicious. partments and agencies. six buildings owned by the are expected to be ad- Detroit will become the world’s Chesterfield Township-based Ilitch family’s Olympia Devel- dressed this week. Free center of automotive intelligence, Achatz Handmade Pie Co. is getting MSU wins rare isotope bid opment. Capping the list is Press Publisher David Hun- defined less by manufacturing and help from Walsh College in the form the historic Fine Arts/Adams ke sent a memo to staff dis- more by engineering and design, if of a “small business makeover.” Michigan State Universi- Theatre Building in Grand cussing the announcement, the region can get through this Our camera will go along to profile ty has edged out rival bid- Circus Park. but did not reveal details. economic crisis. the company, what it’s trying to der Argonne National Labora- Detroit Mayor Ken “In every developed and developing accomplish, and what advice Walsh tory outside Chicago to host Cockrel Jr. was cleared of country, an auto industry is OBITUARIES has to offer. the new $550 million Facili- criminal wrongdoing in a considered a pillar for a successful Look for that Wednesday at Charles Rosenzveig, 88, economy,” he said in a speech to ty for Rare Isotope Beams, state investigation of his www.crainsdetroit.com/smalltalk. the U.S. Department of Energy petitions to run for office, prominent rabbi and the Detroit Economic Club last WEB WORLD Thursday. While you’re there, sign up for our and two Michigan legisla- the AP reported. founder of Holocaust Memo- Alan Baker thrice-monthly Small Talk e-mail Miss it? You can go to our Web site tors announced Thursday. Finances for the Detroit rial Centers in West Bloom- Web General Manager reports targeting small business. right now and watch the entire The new facility is ex- Public Schools will be han- field Township and in Farm- speech. It’s free, so why not do it now? pected to take about a dled by a state-appointed of- ington Hills, died Dec. 11. DBpageAD.qxd 12/3/2008 2:24 PM Page 1

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