What Will Green Power Cost?

DETROIT BUSINESS MAIN 03-10-08 A 1 CDB 3/7/2008 6:30 PM Page 1

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www.crainsdetroit.com Vol. 24, No. 10 MARCH 10 – 16, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Richard Duncan entitled What will green power cost? to $4M from daughter The House bill limits the sur- A founder and owner of charge to no more than $36 annual- the former Jerome-Duncan Surcharge, spending cap considered ly for residential Inc. Ford dealership in Ster- customers, $190 ling Heights is entitled to $4 BY AMY LANE sources by 2015? er electricity providers, pending annually for million in total damages CAPITOL CORRESPONDENT “They really have to start going Michigan Public Service Commission small and medi- from his daughter and suc- to town in a short period of time. approval, could assess a 20-year sur- um-size commer- LANSING — Michigan’s drive cessor as majority owner, a And doing that, whether they’re charge on all customers at the start cial customers to renewable energy is generating Macomb County judge ruled building or buying, there will be of their plan to meet the renewable and $2,250 annu- Friday in a civil lawsuit. concern about higher electricity an additional expense that comes portfolio standard, or RPS. ally per meter Chief Circuit Judge Anto- prices. with it. And that’s going to come At maximum, the surcharge for large com- nio Viviano entered a judg- The issue: How, and at what back to the ratepayers,” said would enable providers to spend mercial and in- ment awarding Richard Dun- price, will utilities or other energy Chuck Hadden, vice president of about $6 billion — an amount that dustrial cus- can $4,006,734.22 in damages providers build or purchase re- government affairs for the Michi- both DTE Energy Co. and CMS Energy Hadden tomers. from Gail Duncan, adding newable power to meet a proposed gan Manufacturers Association. Corp. have estimated it would take If spending exceeds those $100,000 in sanctions plus state mandate that 10 percent of Under one option being discussed to meet the proposed RPS, as $740,000 in interest onto a power come from renewable in the state House, utilities and oth- Crain’s reported in February. See Cost, Page 28 $3.1 million jury verdict. Jerome-Duncan, long one of the nation’s largest Ford dealerships based on new- vehicle sales, filed Chapter 11 bankruptcy in 2005 after Cancer therapy defaulting on a Ford Motor Orion Township Credit loan. Its assets were acquired in 2006 by Troy- based Suburban Collection. Baldwin raises debate A bitter family dispute be- The Auburn Mile tween the elder Duncan and Commons Lowe’s Gail, who had owned a majority of the company from over shared 1993 until its dissolution, led to the 2003 lawsuit. Jurors found in the Feb- ruary civil trial that Gail Great Lakes Crossing technology had violated a noncompete agreement at the time of the ownership transfer when BY JAY GREENE she later acquired two Maz- CRAIN’S DETROIT BUSINESS da dealerships and a former On Feb. 12, a state Certificate of Need Commis- Mel Farr Hyundai/Kia deal- Wetlands sion work group of five hospital officials, one ership. They also found she medical school physician and two community had committed shareholder Lake LAURA KOWALSKI/CDB representatives met in Lansing to talk about oppression and still owed Angelus an expensive yet possibly better way to de- her father money on the stroy cancers. The idea is to use proton beams stock transfer that made her to direct high dosages of radiation to destroy a majority owner. small tumors. “We believe there are Two weeks later, on Feb. 26, the group voted some issues from the case on whether the hospitals would be in favor of that could be appealed if we jointly financing and operating a proton-beam choose,” said attorney Keith therapy facility. The executives and physi- Jablonski of Beier Howlett P.C. The final piece cians gathered knew costs to build the facility in Bloomfield Hills, co-coun- could range from $120 million to $160 million sel for Gail Duncan and hus- BY DANIEL DUGGAN and that there would be a limited number of band Shashi TejPaul. Thomas Lowe’s to CRAIN’S DETROIT BUSINESS patients. Schehr, an attorney for The vote was 8-1. The lone vote against Richard Duncan and wife In 1995, dining options at the Baldwin Road exit from I-75 were limited to a Big Boy restaurant. Retail was limited to a gas working together was William Beaumont Hospi- Barbara at Dykema Gossett fill last big tals in Royal Oak. P.L.L.C., said the plaintiffs station’s chip-and-cookies rack. Today, dining options such as Rainforest Cafe, Joe’s Crab Those in favor of a collaborative approach also have to consider were Henry Ford Health System, Detroit; Kar- whether to appeal. parcel near Shack and Mountain Jack’s Steakhouse are among the dozens of restaurants. Retail options fill more than 2.5 million square manos Cancer Institute, Detroit; Genesys Health All damages and fees in System, Grand Blanc; Spectrum Health, Grand the judgment are against feet of stores, including the Great Lakes Crossing mall. But the growth has ended. Rapids; University of Michigan Health System, Gail Duncan only. Both Great Lakes Ann Arbor; Michigan State University School of sides have 21 days to consid- Silverman Development Co. is developing a Lowe’s home-improvement store on the southwest corner of I-75 and Joslyn Medicine, East Lansing; and the two communi- er filing an appeal. ty groups, Michigan Manufacturers Association, — Chad Halcom Crossing Road that holds the distinction of being the last major retail parcel to be developed near the intersection. Lansing, and Michigan Health Care Consumer See This Just In, Page 2 See Lowe’s, Page 29 See Cancer, Page 28

Groups want to CRAIN’S LISTS revive Avenue of General contractors, Page 15 NEWSPAPER Fashion, Page 3 Construction projects, Page 16 DETROIT BUSINESS MAIN 03-10-08 A 2 CDB 3/7/2008 5:51 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 10, 2008

hoping to find a less time-con- RFP sought for housing Proposed law would stop REIS HIS JUST IN suming solution. THIS JUST IN — Daniel Duggan The city of Detroit Planning and Development Department and the ■ From Page 1 Tourism bills to be discussed Detroit Collaborative to End Home- bid for annexation by Livonia lessness Together have issued a Zaccaro’s Market still plans Bills to enact a $60 million request for proposals to build committee in the Senate, but the boost in state tourism and busi- BY CHAD HALCOM March 31 opening in Detroit 4,000 units of permanent housing CRAIN’S DETROIT BUSINESS House version is more narrowly ness marketing are headed for for the homeless in the city with- Opening of a high-end food and legislative attention this week. tailored to cities and townships in five years. Legislation that has cleared a with a population of 20,000 or wine market at 3100 Woodward The House Tourism, Outdoor House committee in Lansing In the RFP, the two organiza- more that provide services such Ave. in Detroit is still planned for Recreation and Natural Re- tions ask developers and non- could close the door on a develop- as sewers and fire protection. March 31 despite a tangle of city sources Committee is scheduled profits who serve the homeless to er’s option to bypass its standoff REIS has proposed an $800 mil- regulations that will prohibit the Tuesday to take up House Bills collaborate in their bids. with Northville Township by get- market’s sale of wine and beer. 5865-5867, which move forward a According to the request, a ting two of the eight residents on lion project called Highwood, Though the regulations were proposal made by Gov. Jennifer pool of up to $5 million is expect- its land at the former Northville which has been stalled nearly a meant to stem proliferation of Granholm in her State of the State ed to become available this year. Psychiatric Hospital site to sign year because Northville Town- liquor stores in the Brush Park address. About 80 developers and sup- a petition to allow neighboring ship and REIS disagree on sever- neighborhood, Cindy Warner’s Zac- The bills would make $60 mil- portive service providers Livonia voters to annex the site. al terms, such as the amount of caro’s Market may be forced to lion available for tourism and showed up for a late February The bill exempting certain larg- retail at the site and the paying seek a modification of the devel- business development and mar- meeting to get more information er townships from land annexa- for cleanup of environmental and opment plan for the Brush Park keting but do not specify how the on the initiative. tion by neighboring cities passed medical waste. Urban Renewal Area. The money would be spent. Proposals are due April 18. the House Intergovernmental, Urban Now eight registered voters process can take four to six — Amy Lane — Sherri Begin and Regional Affairs Committee by a rent property on the REIS site, months, requiring approval from narrow vote last week. and under current law only 20 the Detroit City Council and the De- One of its sponsors is concerned percent, or two of them, would troit Planning Commission and CORRECTIONS about the joint venture REIS nearby residents. need to sign a petition in order to Ⅲ Northville L.L.C., made up of Bloom- put a ballot question before Livo- Wine and beer sales will repre- A story on Page 26 of the March 3 edition incorrectly stated the size field Hills-based Real Estate Inter- sent 25 percent of sales for the of the staff at CORE Partners L.L.C. Before the recent departure of four nia voters on annexing the site. ests Group Inc. and Livonia-based “The proposal is just bad legis- store, and the margin on beer brokers, there were 14 brokers working for the firm. Schostak Bros. & Co., which ob- Ⅲ lation for land development,” and wine is 35 percent, Warner In a story on Page 14 of the March 3 issue, Susie Oppenheim was tained township approval for tem- said Steve Mitchell, president of said. She said she can’t postpone erroneously identified as the mother of Danny Oppenheim, a Kansas porary houses and then moved Mitchell Research & Communica- opening the store because she al- man who died during drug detoxification at a Troy clinic. She was four families onto the site as ready has spent more than $1 his wife. tions Inc. in East Lansing, who Ⅲ renters. million on food preparation A story on Page 13 of the March 3 issue reported the wrong first Rep. Marc Corriveau, D- represents REIS. equipment, which she must be- name for an Ann Arbor lawyer who defended former Grosse Pointe Northville Township, said his That dispute has gone to litiga- gin paying off. fashion designer Ilene Moses against federal fraud charges. The cor- bill now awaits a date for hearing tion at U.S. District Court in Detroit. Discussions among the Plan- rect name is John Minock. Ⅲ on the House floor and would af- Last week, U.S. District Judge ning and Development Department, Lisa Adams Ford, inaugural co-chair of the Women’s Power fect REIS’ $800 million mixed-use Sean Cox sent the case to a facil- Breakfast to benefit Gleaners Community Food Bank of Southeastern the Planning Commission, the development on the site near itator for possible resolution. Michigan, was incorrectly identified as the wife of Bill Ford Jr. in a mayor’s office and the City Coun- Seven Mile and Haggerty roads. Chad Halcom: (313) 446-6796, Page 22 story in the March 3 edition. cil are ongoing, with officials A similar bill also has cleared [email protected] DETROIT BUSINESS MAIN 03-10-08 A 3 CDB 3/7/2008 6:16 PM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S SBA-backed lending slides INDEX amount of loans has increased. Taking stock: Economy, close scrutiny of applications cited Temkin said the Michigan SBA Meadowbrook Insurance reached a lending high in 2006, mak- Group expects 20 percent growth with BY NANCY KAFFER part of some lenders to extend loans Loan Program funds the purchase of ing 3,702 loans worth $548.9 million, acquisition of ProCentury CRAIN’S DETROIT BUSINESS under the SBA Express Loan program, fixed assets. with 2007 the institution’s second- Corp. said SBA District Director Richard “In terms of the express loans be- best year at 3,314 loans worth $496.1 Page 4. Coming off a two-year high, Small Temkin. ing down, virtually all of them are million. Business Administration-backed loans Express loans are down 45 percent credit scored, and as we know, as J.P. Morgan Chase & Co. has re- are down by a significant margin in from last year, but lending in the 504 (the Federal Reserve System) has re- mained the state’s top SBA lender, one loan program and have de- Loan Program is up 23 percent, for a ported, some of the lenders have Temkin said. creased slightly across the board, roughly 5 percent decrease in lend- tightened credit scores both on their “In our bank, we’re devoted to a SBA officials report. ing across the board. own and for SBA deals,” he said. lot of efforts around small business,” Worsening economic conditions, In the express program, the SBA Also down is the number of loans, said Larry Conley, J.P. Morgan coupled with some lenders’ in- guarantees 50 percent of the loan, which has decreased by about 32 per- Chase senior vice president and SBA creased scrutiny of applications, Rising postal rates: compared to 75 percent in the tradi- cent year-to-date, Temkin said last Mass mailers try to lick may be leading to reluctance on the tional Preferred Loan Program; the 504 week while noting the average dollar See Lending, Page 30 the problem by consolidating, using vendors. Page 6. Innovation Index: Investment in innovation is down sharply in Michigan. Page 7. Sickle-cell therapy: DMC, Karmanos work to IMRA’s ultrafast lasers continue sickle-cell outpatient treatment. Page 19. Osteoporosis drug: An Ann Arbor biotech company is running clinical trials of new bring precision, profits medicine that it hopes will lead to venture- capital funding. Page 25. Ann Arbor company eyes expansion These organizations appear in this week’s Crain’s Detroit Business: Association of Fundraising BY TOM HENDERSON over two floors. It will bring IMRA’s total Professionals ...... 6 CRAIN’S DETROIT BUSINESS space at the campus to 58,000 square feet. If ASTI Environmental ...... 11 Baldwin Commons ...... 29 the permit process goes as Barton Malow Co...... 13 Ultrafast fiber lasers reduce planned, the new building CB Richard Ellis ...... 29 side effects for those getting eye should be occupied in February Compuware Corp...... 27 surgery, help manufacturers of OntheGrow Detroit Edison Co...... 6 2009. DTE Energy Co...... 6 computer chips reduce their On the Grow is a The company plans to add Econ Marketing ...... 6 size and cost, and are helping feature that will about 20 employees. The addi- Genesys Health System ...... 1 Ann Arbor-based IMRA America appear in most issues tional staff will include five re- Greektown Casino ...... 14 highlighting growing Henry Ford Health System . . . . . 1, 13 Inc. boost revenue and add jobs. search scientists, eight to 10 Hotel Investment Services ...... 14 The company, founded in companies, large and IMRA America Inc...... 3 small. Know of a manufacturing and assembly 1990 and based partly on patent- workers, four engineers and one J.P. Morgan Chase & Co...... 3 ed research by the University of company you think J.S. Vig Construction Co...... 13 Crain’s should write or two salespeople. Karmanos Cancer Institute ...... 1 Michigan’s Center for Ultrafast Op- about? Contact IMRA currently employs Kirco Development Corp...... 29 tical Science, has applied for Lormax Stern Development Co. . . . . 29 Managing Editor about 55 in Ann Arbor and five Meadowbrook Insurance Group . . . . 4 permits to build a fourth build- Andrew Chapelle at in its Application Research Lab- Metropolitan Detroit Convention & ing at its headquarters just off [email protected]. oratory in Silicon Valley. Visitors Bureau ...... 14 Geddes Road, east of U.S. 23. MGM Grand Detroit Casino ...... 14 The California lab conducts MichCon ...... 6 The 23,000-square-foot build- research in collaboration with universities, NATHAN SKID/CRAIN’S DETROIT BUSINESS Michigan Manufacturers Association 1 ing, expected to cost about $5.5 million, will IMRA President Takashi Omitsu projects revenue up to $20 million Michigan Public Service Commission 1 house research and development facilities See IMRA, Page 30 this year, up from about $15 million last year. Michigan Roundtable for Diversity and Inclusion ...... 27 MSU School of Medicine ...... 1 MotorCity Casino ...... 14 National City Bank, Michigan . . . . . 30 Plante & Moran Cresa ...... 13 Ramco Gershenson Properties Trust 29 Silverman Development Co...... 1 Simply Casual ...... 3 Skanska USA Building Inc...... 13 Small Business Association Can avenue be fashionable again? of Michigan ...... 7 Spectrum Health ...... 1 Taubman Centers Inc...... 29 Truss Development ...... 29 Livernois merchants, city want revival University of Michigan-Dearborn . . . 7 University of Michigan Health System ...... 1 BY NANCY KAFFER city’s most stable neighborhoods. U.S. Postal Service ...... 6 CRAIN’S DETROIT BUSINESS City officials say the strip’s va- Velcura Therapeutics Inc...... 25 cancy rate is roughly 10 percent, Walbridge Aldinger ...... 29 Avenue of Fashion shop owner but Bartell estimates that 30 per- Wayne State University ...... 6 Rufus Bartell has a vision: foot traf- William Beaumont Hospitals . . . . 1, 6 cent of the strip’s storefronts are Woodward Avenue Association . . . . 29 fic in the middle of winter. empty. The stretch runs the gamut, Fifty years ago, the Livernois from newly installed boutiques like Avenue strip between Six Mile and Bartell’s to unkempt older busi- BANKRUPTCIES ...... 26 Eight Mile roads was a bustling re- nesses. BRIEFLY ...... 24 tail district, the place to shop for Now, a community business ef- BUSINESS DIARY ...... 20 clothing and accessories. But like CALENDAR ...... 21 fort backed by city support is aim- CAPITOL BRIEFINGS . . . . . 26 many of Detroit’s retail districts, ing to restore the Avenue of Fash- the Avenue of Fashion declined as CLASSIFIED ADS...... 22 ion, creating a template for EARNINGS ...... 25 retailers left the city and shoppers revitalization that could be imple- KEITH CRAIN ...... 8 followed. mented in other Detroit neighbor- LETTERS ...... 8 The strip has fared better than hoods. OPINION ...... 8 some Detroit byways, being fueled Bartell moved his fashion-for- OTHER VOICES ...... 9 by vehicle traffic along Livernois ward clothing store Simply Casual to PEOPLE ...... 18 and its proximity to Palmer Woods, the avenue from the west side al- RUMBLINGS...... 31 NATHAN SKID/CRAIN’S DETROIT BUSINESS WEEK IN REVIEW ...... 31 Simply Casual owner Rufus Bartell wants to see this stretch of Livernois to return to the Sherwood Forest and University glory days as the Avenue of Fashion. Commons, counted among the See Avenue, Page 29 DETROIT BUSINESS MAIN 03-10-08 A 4 CDB 3/7/2008 5:38 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 10, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Meadowbrook CEO sees 20% growth with new acquisition

BY JAY GREENE headed in and absolutely confident based Signal Hill Capital Group L.L.C., CRAIN’S DETROIT BUSINESS Meadowbrook brings an excep- said the deal is expected to im- tional management team and a prove return on equity and earn- CEO Robert Cubbin and Mead- performance-focused organiza- ings. owbrook Insurance Group in South- tion. We are proud to be a part of “There isn’t a lot of cost savings field have come a long way. it.” here because you don’t have two Cubbin started with the compa- By combining the companies like plants, but it is a true expan- ny in 1987 as its under the Meadowbrook name, sion of (Meadowbrook’s) business general counsel. Cubbin said he expects 15 percent model,” Billingsley said. But when he be- to 20 percent growth in premiums The day before the Feb. 20 an- came CEO in over the next two years. The $272.6 nouncement, Meadowbrook’s May 2002, Mead- million deal is expected to be done stock price was about $9.16, but the owbrook in the third quarter, pending state stock price dropped to about $8.06 (NYSE: MIG) regulatory and stockholder ap- by Feb. 21. The stock closed Friday had had three proval. The boards of both compa- at $7.57. straight years of nies have endorsed the merger. Cubbin said he expects the stock financial losses Through four wholly owned to rise over the next year into the from 1999 Cubbin companies, Meadowbrook writes $12 to $13 price range. Elizabeth through 2001. It insurance lines that include work- Malone, an analyst with KeyBanc had net income of $5.9 million in ers’ compensation, commercial Capital Markets, Cleveland, said 1998, but a net loss of $7.8 million property and automobile, profes- KeyBanc is recommending the in 1999, $17.5 million in 2000 and sional and product liability, and stock with a target price of $12. $6.5 million in 2001. excess reinsurance. “Risks that could impede the In summer 2001, its credit rating Cubbin said a major reason for stock from achieving our price tar- had gone down three notches to B the deal is to increase Meadow- get include our belief that a mater- from A-minus, according to AM brook’s outside sales force that ial increase in MIG’s loss reserves Best, and its stock price in early will help it write more policies. and the resulting deterioration in 2002 had dropped below $2 from a “They are not allowed to write the company’s credibility would historical high of about $34 in 1998, workers’ compensation and auto. be more damaging to the company three years after the company We can sell our policies through than the related financial loss,” went public. their 140 agents and brokers said Malone in a March 4 report. Within a year after Cubbin took (across the country), and this will Cubbin said Meadowbrook’s tar- the helm, Meadowbrook’s stock expand our distribution network,” gets are to achieve a 15 percent began to rise again. he said. “We have well over 1,000 growth in net income and 15 per- By the end of 2002, Cubbin’s agents that are focused on our ad- cent return on equity in 2009. turnaround strategy — which in- mitted products. This will round The merger also is expected to cluded divesting unprofitable out our distribution.” reduce the combined company’s lines, flattening its management Over the next few years, Cubbin expenses in 2009 by $4 million, or structure and modernizing infor- expects high growth in auto, com- 1.5 percent, by having only one mation technology — paid off mercial and workers’ compensa- board of directors, one audit firm, when the company reported net in- tion. one director’s and officer’s liabili- come of $1.7 million on $197.8 mil- Despite a 13 percent drop in ty policy and one stock exchange lion in revenue. Meadowbrook’s stock price after membership fee, Cubbin said. Now, Meadowbrook is back to the announcement, analyst Ken- Jay Greene: (313) 446-0325; an A-minus rating, its stock up neth Billingsley with Baltimore- [email protected] over $8 per share and it reported net income of $29.8 million on revenue of $340.7 million in 2007. Be- tween 2002 and last year, the company reported net income of $93.7 STREET TALK million on revenue of $1.64 billion. THIS WEEK’S STOCK TOTALS: 14 GAINERS, 54 LOSERS, 6 UNCHANGED Meadowbrook took another big step last month when it an- CDB’S TOP PERFORMERS 3/07 2/29 PERCENT nounced it planned to acquire Pro- CLOSE CLOSE CHANGE Century Corp. (Nasdaq: PROS), a 1. American Axle $22.28 $19.68 13.21 Columbus, Ohio-based insurer 2. Caraco Pharmaceutical 17.26 16.43 5.05 that specializes in high-risk spe- 3. TechTeam Global Inc. 9.08 8.75 3.77 cialty habitational insurance lines 4. Energy Conversion Devices Inc. 27.25 26.57 2.56 like apartment complexes and con- 5. Rofin-Sinar Technologies Inc. 40.27 39.37 2.29 dominiums, accounting for 40 per- 6. Citizens Republic Bancorp Inc. 11.29 11.13 1.438 cent of its business, along with 7. TRW Automotive Holdings Corp. 22.38 22.08 1.36 bars and taverns, day care and fit- 8. Detrex Corp. 7.85 7.75 1.29 ness facilities. 9. Universal Truckload Services Inc. 18.91 18.68 1.23 ProCentury is by far Meadow- 10. Dearborn Bancorp Inc. 7.04 6.99 0.72 brook’s largest acquisition in 3/07 2/29 PERCENT terms of price paid and gross writ- CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE ten premiums. In 2007, ProCentu- 1. Noble International Ltd. $7.58 $10.91 -30.52 ry wrote $238.3 million in premi- 2. Flagstar Bancorp Inc. 6.00 7.16 -16.20 ums and Meadowbrook wrote 3. Community Central Bank Corp. 5.50 6.35 -13.38 $346.5 million. 4. Borders Group Inc. 8.09 9.26 -12.64 Over the past three years, Mead- 5. Pulte Homes Inc. 11.85 13.54 -12.48 owbrook has acquired Cleveland- 6. Asset Acceptance Capital Corp. 8.55 9.75 -12.31 based U.S. Specialty Underwriters 7. Ford Motor Co. 5.78 6.53 -11.49 Inc. for $44 million and Insurance & 8. Amerigon Inc. 16.26 18.16 -10.46 Benefits Consultants, of Sarasota, 9. Clarkston Financial Corp. 8.10 9.00 -10.00 Fla., for about $3 million. 10. Somanetics Corp. 25.14 27.79 -9.54 Edward Feighan, ProCentury’s chairman and CEO, said in a Feb. Source: Bloomberg News. From a list of publicly owned companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading 21 conference call: “We are very at less than $5 are not included. pleased in the direction we are DETROIT BUSINESS MAIN 03-10-08 A 5 CDB 3/7/2008 4:09 PM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 5 Distractions hang over State of the City speech

BY ROBERT ANKENY this year. their personal relationship and have 90 days to gather almost CRAIN’S DETROIT BUSINESS AGENDA POSSIBILITIES Reports in the Detroit Free Press about the firing of the officers. 57,400 registered voter signatures in January revealed that a series If Kilpatrick were to be convict- to put the issue on the ballot. When Mayor Kwame Kilpatrick Likely to be discussed: of romantic text messages between ed of perjury, he could be removed If enough valid signatures are delivers his 2008 State of the City New housing initiatives, job Kilpatrick and his former chief of from office by the council or the centers, bringing new employers collected, a special election could message Tuesday at The Max M. staff, Christine Beatty, in 2003 and governor. The council on March 4 Fisher Music Center, the audience into the city and improving be called or the issue could be put neighborhoods, light-rail along 2004 were part of a confidential tabled for two weeks a nonbinding on the Aug. 5 primary or Nov. 4 watching on television and those deal never divulged to the City resolution asking the mayor to re- Woodward. general election ballot. in the packed Council about the whistle-blower sign. The city already has been hit by hall will hear Likely to be avoided: settlement. Last Wednesday, a recall peti- much about Whistle-blower lawsuit, Christine By the end of this week, Wayne tion against the mayor won ap- some fallout from the “Textgate” “Next Detroit.” Beatty, perjury investigation, recall County Prosecutor Kym Worthy is proval from the Wayne County Elec- affair, with the National Council of petitions. But what may expected to report findings of her tion Commission for language on Black Mayors Inc. moving its annual not be discussed, office’s investigation into allega- one point. A lawyer for Kilpatrick convention from Detroit to New if even men- to balance the budget. tions that Kilpatrick and Beatty said they would challenge the peti- Orleans next month. tioned, is “Next But Kilpatrick also will be fac- may have lied under oath in the tion in court, but if not over- Robert Ankeny: (313) 446-0404; Kilpatrick,” as ing major personal distractions whistle-blower trial about about turned, petition circulators would [email protected] the mayor is un- Kilpatrick der fire from many directions from the fallout of a police whistle- blower lawsuit that the city settled for $8.4 million last November. Instead, the message is more likely to include Kilpatrick’s plans for housing initiatives, new job centers, bringing new employers such as Quicken Loans into the city and improving targeted neighborhoods. Kilpatrick is expected to outline an economic stimulus package he plans to send to the City Council for approval this week. In it, he’ll proposed spending millions of dollars for: Ⅲ Improvements to City Air- port. Ⅲ Home foreclosure assistance. Ⅲ Improved public lighting, police and fire facilities. The package also is expected to include new capital to Detroit businesses, upgrades in city-offered apprentice training programs and a plan for improving the city’s bond rating. He may also address some key issues like an expansion of Cobo Center to retain the North Ameri- can International Auto Show. He may even hint at the below-the- Don’t Let the Waiting Game radar plans for a private venture to put a $100-million-plus light-rail system along the 3.5 mile stretch of Shape Your Bottom Line Woodward Avenue between Hart Plaza and New Center. (Crain’s Feb. 25, Page 1.) “Time is money.” He also may talk about hiring As the saying goes, some 500 more police officers Save money today! That’s especially true when it comes to your while keeping a wary eye on bal- company’s retiree coverage. ancing a budget that City Council fiscal analyst Irwin Corley Jr. says reflects “complete anarchy” with Ask your Blues agent or BCN Advantage is the group Medicare its assumptions about revenue and Advantage plan with the experience, its lack of controls on spending. sales representative about Corley told the City Council re- dedication and accessibility to save you cently that Detroit will end this fis- BCN Advantage. money right now. Our streamlined referral cal year in June with a $112 million deficit, while Kilpatrick’s process, comprehensive benefits and financial staff is predicting a $3 wellness programs help keep your retirees million surplus. Blue Care Network of Michigan healthy and happy. A 14-month-late state mandated contracts with the federal government outside audit report for fiscal 2005- 2006 said, among other criticisms, and is a nonprofit corporation and Our industry-leading expertise is paying off. that the city failed to maintain a independent licensee of the Blue Cross Realize significant savings now. complete and accurate list of all and Blue Shield Association. bank and investment accounts. The KPMG auditors also said De- troit doesn’t have “qualified … experienced employees to prepare financial statements.” Also facing Kilpatrick on the budget front is moving to finish Blue Care Network of Michigan deals on the sale of Detroit’s tunnel MiBCN.com/medicare rights to Windsor, sale of the Rack- ham Golf Course to Huntington Woods and numerous other prop- H5883_08 O BCNADMAd_021508 Source Code: CRDB erties the city has earmarked as surplus assets whose value can go DETROIT BUSINESS MAIN 03-10-08 A 6 CDB 3/7/2008 2:14 PM Page 1

POSTAGE INCREASE The new U.S. Postal Service rates Mass mailers try to lick rising postal rates go into effect May 12: First-class mail letter (1 oz.): 42 cents, up a penny. ny, eliminating one of two mailings First-class mail letter (2 oz.): 59 Some consolidating, others using vendors to those customers each month, cents, up a penny. said John Austerberry, senior ex- Postcard: 27 cents, up a penny. BY SHERRI BEGIN first-class mail to a nickel on certi- And rates are expected to go up ternal communications specialist. Eleven percent of the 2.8 million First-class mail large envelope CRAIN’S DETROIT BUSINESS fied mail. annually, as allowed by the U.S. (2 oz.): $1, up from 97 cents. Standard-bulk rates will in- Postal Service Act of 2006, al- MichCon-Detroit Edison cus- Large mailers are getting more Certified mail: $2.70, up from crease no more than 2.9 percent. though increases are limited to the tomers who get a bill from the com- $2.65. serious about pruning bad ad- Depending on destination, weight rate of increase in the Consumer pany each month have signed up Standard mail increases of no dresses, signing up customers for and other factors, large envelopes Price Index. for electronic billing, eliminating more than 2.9 percent, depending online bill-paying and other mea- with department store flyers Detroit-based DTE Energy Co. has their paper bills entirely. on weight, destination and sures to mitigate the effect of ris- would go up to 40 cents, from 39.2 managed to maintain flat mailing That’s up from 9 percent signed processing. Examples include: ing postal costs. cents, and credit card solicitation costs since last May’s increase in up for e-bills at the beginning of large envelopes with department Rates for first-class mail, stan- letters would go up to 22.5 cents, part by consolidating Michigan Con- 2007 and 5 percent in 2006, Auster- store flyers, 40 cents, up from dard mail, periodicals, package from 21.8 cents. solidated Gas Co. and Detroit Edison berry said, and puts DTE in the top 39.2 cents; and credit card services and special services are Increases for express and priori- Co. electric bills for about 700,000 of quartile of energy companies solicitation letters, 22.5 cents, up scheduled to increase May 12. The throughout the U.S. for electronic- from 21.8 cents. ty mail are expected to be an- its 3.5 million customers who re- increases range from a penny on nounced this month. ceive both services from the compa- billing enrollment. DTE also has aggressively cleared out mailings returned as undeliverable, Austerberry said, something nonprofits also are doing more often, said Richard Mar- tin, president of the Association of Fundraising Professionals, Greater De- troit Chapter and vice president of advancement at Lutheran Social Ser- vices of Michigan. Rather than shifting away from direct mail, nonprofits that have made individual giving and direct mail their fundraising focus are instead being more targeted in their mailings, he said. Wayne State University has con- tracted presort vendor Econ Market- ing in Troy for cheaper mail rates. The university is paying 34 cents for a typical first-class letter, rather than the usual 41 cents, said William Giammara, director of business services. Econ is able to get a discount from the post office for presorting by ZIP code and route. Contracting with an outside vendor helped WSU keep its postal cost increases at about 4.5 percent between 2006 and 2007, which put its mail costs at just under $1.3 million last year, Giammara said. Rather than sending mail for its 18,000 employees through the postal services, William Beaumont Hospitals has begun delivering it through interoffice mail, said Nan- cy Bates, manager of mail services. The health system also is using other vendors for much of its package shipping and is taking advantage of nonprofit shipping rates for its outreach and educational mailings, which fall under the guidelines for securing the lower rate. Even with those moves, however, Bates said this year she expects Beaumont to spend $500,000 more than the $1.25 million it paid in postal charges last year. Decreased mailings from lenders, higher fuel costs and electronic diversion of mail as more and more people signed up for electronic bills and Web-based bill paying all have contributed to the need to raise postal rates, said Ed Moore, manager of communications for the Detroit district of the U.S. Postal Service. Moore said the Postal Service Act of 2006 was intended to help spread out price increases into smaller, more manageable increments. The regular increases also help the post office stay more competitive. “As technology changes, we have to stay up front and compatible with new technologies that take place,” Moore said. “We definitely have to remain competitive.” Sherri Begin: (313) 446-1694, [email protected] DETROIT BUSINESS MAIN 03-10-08 A 7 CDB 3/7/2008 2:17 PM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 7 Spending on innovation down sharply in state

second-quarter 2007, lowering the quarter, which possibly hurt inno- State’s shaky TRACKING INNOVATION IN MICHIGAN index by 2.4 points. Loans from the vation activity. U.S. Small Business Administration “At the same time of this uncer- The Innovation Index, compiled by the University of Michigan-Dearborn posted the fifth consecutive de- tainty, Michigan had jumped con- Center for Innovation Research, will measure six components linked to tax structure, economic innovation in Michigan. The goal of the index is to track changes cline to 684, compared with 809 in siderably in its in innovation activity in the Michigan economy. the second quarter, which sub- rank among Each index will be released quarterly, approximately five months after each tracted 1.8 index points. states for new lending crisis quarter ends. Today’s report is for the third quarter of 2007. The index is All index figures are gauged business starts,” calibrated to a base value of 100 for the first quarter of 2007. against a value of 100 for first- Clevey said. quarter 2007. Redding, an associ- “You would likely causes Innovation Index for 3rd quarter 2007 ate professor of business econom- think there would have been BY CHAD HALCOM The overall index is 95.8, down from 99.7 in the second quarter and off ics at UM-Dearborn, said the a surge of invest- CRAIN’S DETROIT BUSINESS from 97.7 the same quarter a year earlier. venture-capital indicator “has a lot of flexibility and activity” with ment or finan- Investment in innovation is off Component 3rd quarter ’07 2nd quarter ’07 Index points a “relatively small number of Clevey cial backing for sharply for Michigan, according to deals” to measure each quarter. this activity, but

the latest Innovation Index to be Trademark applications 1,329 1,319 ▲ 0.2 points “The early indications in the there wasn’t. released today by the University of ▲ “In a period of uncertainty, capi- Innovation workers 4.3% of labor 5.47% of labor 2.5 points data seem to be that things didn’t

Michigan-Dearborn School of Man- bounce back all the way in the tal gets very conservative.”

agement. SBA loans 684 809▲ 1.8 points fourth quarter, but it didn’t have Clevey and Redding both voiced The school’s index figure to ▲ such a strong negative turn that some concerns about recent re-

measure economic innovation ac- Venture capital $7.38 million $54 million 2.4 points we saw in this quarter,” he said. ports the U.S. economy entered a tivity in the state was 95.8 for the Incorporations 17,245 17,781▲ 0.4 points “But that’s still partial data, and contraction or recession sometime third quarter of 2007, down from we need more or we’d be reporting late in the fourth quarter or early 99.7 the previous quarter and off this year, but they said the latest 2nd quarter ’07 1st quarter ’07 Index points on that quarter already.” from 97.7 the same quarter a year Mark Clevey, vice president of innovations should continue to earlier. Gross job creation 239,000 217,000 up 2.9 points entrepreneurship for the Small reap local benefits. Hurting the outlook at that time Gross job creation enters the index one quarter late due to availability of data. Business Association of Michigan, “The companies with invest- might have been an uncertain tax agreed with Redding that econom- ment from this period (the third structure in Michigan and a shaky of six indicators measured in the money on the table during the ic uncertainty over the new tax quarter) will be going forward de- national economy that showed index. quarter,” he said. structure replacing the single- ploying assets that are already worries about a credit crunch and “Much of what we see, in things Venture capital saw a particu- business tax probably made Michi- paid for,” he said. “And those (as- mortgage lending crisis, said pro- like small-business loans and ven- larly soft quarter, with just $7.38 gan an unattractive place to invest sets) are pretty recession-proof.” ject director Lee Redding. The new ture capital, suggests a weak spot million going to Michigan compa- until the Legislature resolved Chad Halcom: (313) 446-6796, report shows declines in four out for innovation was the (available) nies compared with $54 million in those issues late in the fourth [email protected]

THE FIRST COUPLE YEARS WERE A STRUGGLE, but every year on May 12th, my banker was there with a little gift, celebrating our anniversary. Between gifts, she was telling me new ways to save money, to afford more inventory and to make my life easier. And guess what? Things got better, and this anniversary, I plan on giving her a little gift. DETROIT BUSINESS MAIN 03-10-08 A 8 CDB 3/7/2008 5:37 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS March 10, 2008 OPINION No quick OK for new treatment center ospital administrators in Southeast Michigan were fum- ing last week in the wake of an announcement by H William Beaumont Hospitals that it was planning a $159 million state-of-the-art proton-beam cancer radiation treatment center on its Royal Oak campus. That’s because most hospitals had been discussing a more collaborative approach that might involve joint ownership and/or operation of such an expensive center. (See story, Page 1; also, www.crainsdetroit.com for previous coverage.) Beaumont’s proposal was filed last month; the state Certifi- cate of Need Commission is due to take action this week on a proposal to have a collaborative program. Such a collaboration would require a change in the commission’s rules. Henry Ford Health System and the Karmanos Cancer Insti- tute also had filed individual proposals, but primarily as a defen- sive move. However, Beaumont has a partner in the project and says it is ready to move forward. Proton-beam therapy is considered to be an effective treatment for certain pediatric cancers and, more controversially, for other malignancies, because it can treat certain tumors with less damage to the surrounding tissue than traditional radiation. LETTERS Southeast Michigan should have such a facility. The issue now is whether it should be controlled by a single hospital or whether hospitals with major cancer programs should collaborate to cre- Patents are important assets ate this costly treatment center. If Beaumont’s project is approved, its competitors will want a Editor: In Michigan, lenders and in- Crain’s Detroit Business Mary Kramer’s Feb. 18 column vestors who understand the inher- proton center, too. If this were a race to provide the best con- welcomes letters to the editor. ent asset value of patents and oth- sumer product — a breakthrough in computer technology, for ex- (“Here’s a positive statistic to All letters will be considered for er intellectual property will ample — then it would be fine to let the competitors duke it out. build on”) asks, “Because of its publication, provided they are manufacturing heritage, Michigan consider it in their lending formu- But the state’s certificate-of-need process is in place precisely signed and do not defame has an asset-based lending culture. individuals or organizations. las and investing decisions. because competition often creates duplication and higher costs Is a patent an asset? It could be, if Letters may be edited for length Steven Oberholtzer Intellectual property attorney ultimately borne largely by employer-sponsored health plans. there’s a solid business plan be- and clarity. Managing partner, Ann Arbor office It’s possible that, after review, Beaumont would be deemed hind it. But the lending culture Write: Editor, Crain’s Detroit Brinks, Hofer, Gilson & Lione the best place to put the center. But that needs to be a considered would have to change.” Business, 1155 Gratiot Ave., Ann Arbor While I generally agree with the Detroit, MI 48207-2997. decision by Department of Community Health, which grants or Getting it straight editorial remark, I want to assure E-mail: [email protected] denies CON requests, with input from those with a stake in the Editor: Crain’s readers that patents are as- I noticed that the Feb. 11 Crain’s outcome, which includes employers as well as hospitals. sets and often very valuable ones. high, and infringement litigation List incorrectly listed information Beaumont has had a long history of operating independently In fact, the value of patents as as- and licensing activity is very on the 2008 America @ Work AFL- from the rest of the Southeast Michigan health care community, sets has never been greater. brisk. In order for Michigan com- CIO Union Industries Show, and I Patents are not created equal and but has become more collaborative under the tenure of current panies to emerge from the current want to correct the record: their value is related to a number Guaranteed to amaze, amuse, CEO Ken Matzick. In this case, Matzick says it will take a lead economic climate, the protection of factors, including how broadly of their intellectual-property as- entertain, educate and impress, hospital to make the proton center successful. they encompass an invention, the sets is essential. To maximize the the 70th Annual America @ Work Beaumont argues that its move is the best way to get this commercial importance of the in- value of intellectual-property as- AFL-CIO Union Industries Show treatment to patients soonest. Maybe, but it appears the decision vention, the extent of its departure sets, it is critical to link the compa- has something for everyone. It’s actually is more about self-interest. from existing technology, and the ny’s intellectual-asset develop- for kids, adults, high school se- skill with which the patent is pre- ment and strategies to business niors and senior citizens. It’s the The community health department should act to make sure pared and presented. and product strategies, ultimately largest collection of union-made- the state’s best interests are served from an access and cost stand- The pace of filing for patent pro- maximizing intellectual-asset val- in-the-USA products ever assem- point. It shouldn’t simply OK the first proposal ready to go. tection is now at an historical ue and portfolio leveragability. See Letters, Page 9

KEITH CRAIN: A new election would mean a revolution It looks like the Democratic Party wanting their vote to happening, and the com- tight race. They matter a lot. other election in Michigan, then pulled a fast one on us. “Us” being count. So it’s under- mittee even forbade can- Clinton won an uncontested elec- the Democratic National Commit- the residents of Michigan who standable Michigan De- didates from campaign- tion. Not very democratic, but she tee, should pay to run the election. wanted to participate in a primary mocrats wanted to move ing here. was the only “name” on the ballot. It would appear that the DNC to help select a Democratic presi- up their primary so It sure didn’t bode She wants those delegates. Others made some stupid mistakes, and I dential candidate. someone might notice well for the Democratic are crying foul and that maybe certainly hope that there aren’t any It’s all fallen apart, and now the outcome. No one re- primary. Somehow, the there should be a second election. politicians in Michigan who think someone is going to have to pick up ally believed that the De- Republicans didn’t go OK, now wait a minute. There it would be a fine idea to pony up the pieces. Let’s hope it’s not Michi- mocratic National Com- through this ugly diffi- can be no reason why Michigan with the money. gan taxpayers. I can’t think of any- mittee would punish culty. taxpayers should allow anyone in They better figure out what to do thing that would cause a revolution Michigan for violating Meanwhile, long after here to pay for another election. and they better tell Florida what faster than to have our governor get the committee’s rules the primary, it would ap- That would be unfair to everyone, they have decided. Otherwise, the involved with the financial solution and refuse to seat elected pear that the results and even the Democratic candidates. revolution isn’t going to be in to this Democratic Party mess. delegates at the convention this the number of delegates from The obvious solution is that if the Michigan: It will be at the Democra- I sure can’t blame anyone for summer. But so far that’s what’s Michigan do matter in this very Democrats think that they need an- tic National Convention in August. DETROIT BUSINESS MAIN 03-10-08 A 9 CDB 3/7/2008 10:29 AM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Downtown Detroit needs more retail

Cities that have sustained them- We have impediments to tradi- those walks. Projects already under way can selves have robust foot traffic. tional streetscape retail. People who For the greatest part, downtown help guide us. We also have an ex- There is no getting around this come downtown believe that the im- remains far off the site selection cellent model of public-private en- missing piece of our downtown provements and activities exist in rosters of major national retailers. terprise under our belt, in the suc- puzzle. isolation and there are still many Everyday retail, where we can buy cessful privatization of the Detroit’s city center has sur- dead spaces. Without familiarity groceries or fill a prescription, management of the Eastern Mar- passed expectations with the “big- and comfort, vibrancy suffers. also needs expansion. ket. The Urban Land Institute De- ticket” items like the stadiums and Driving into downtown, we of- Above all, we need to be proac- troit participated in that program, the casinos. Businesses are also ten face the backs of buildings and tive in directly assisting and en- and we pledge our support and in- helping kick-start growth and em- new developments. The central couraging first-floor retail devel- volvement in helping grow down- ployment. Robin Boyle James Bieri business district remains intimi- opment by quality local, regional town retail. These achievements have yet ven traffic. But these events play dating to pedestrians. But down- and national retailers on selected Robin Boyle and James Bieri are to build the critical mass of out according to limited schedules. town Detroit has neither the scale streets, especially at important co-chairs of ULI Detroit, a nonprofit ground-floor retail, which could Furthermore, the business model nor the economic density to sup- cross-streets. organization that aims to provide re- provide our downtown with equal of these events is to capture as port or justify a network of sub- We further propose a new Retail sponsible leadership in the use of parts economic contribution and much disposable income as possi- ways or elevated trains. Detroit is Task Force to align public, non- land and in creating and sustaining social glue. ble and keep it within the facility a “park and walk” town, and our profit and commercial talents and thriving communities throughout Detroit does well with event-dri- or at least in the immediate area. goal must be to extend and energize interests. southeastern Michigan.

LETTERS CONTINUED ■ From Page 8 2008 bled under one roof. We expect over 150,000 people to attend our annual show. It will oc- cur on May 16-18 from 11 a.m. to 7 p.m. at Cobo Hall in Detroit. Ad- mission is free. Hundreds of exciting exhibits and hands-on demonstrations will celebrate America’s union working men and women and the work they do. Meet the folks who train guide dogs and watch as they put their canine students through their paces. For the first time in the show’s history, many of the exhibitors will be encouraged to sell their high-quality products on the floor — including automobiles, tools, work clothes, appliances, work boots, sporting equipment, building products and more — at prices you won’t see anywhere else. Cobo Hall will look great. There will be so much to see and do it may take more than one visit to take it all in. For more information, please visit www.2008 america-at-work.com. Sheri Divers Communications director Michigan State AFL-CIO Lansing Our success stories

NOMINATE POWER SELLERS come in many sizes. Are you a Power Seller? Do you know one? We’re talking about the From our largest design/construction developments to our smallest consulting kind of salesperson who makes the most of every opportunity and projects, REDICO delivers value, satisfaction, and success to our customers, our demonstrates sincere concern for customers. investors, our partners, and our communities. With the boldness to act and the If so, let us know. Crain’s Detroit Business will profile a selection of capability to excel, REDICO is building success stories around the world. the region’s top sellers in its July 14 issue. REDICO... turning potential into success. If you’re a sales manager, nominate your best closers for consideration. If you’re a customer, nominate the best professional who calls on you. The nomination deadline is March 24. For both award programs, visit www.crainsdetroit.com/nominate for the online form. Contact Jennette Smith, assistant managing editor/Focus, at (313) 446-1622 or [email protected] 248 827 1700 with questions about the process; or Jennifer Dunn in marketing at www.redico.com (313) 446-6786 or [email protected] with technical questions about the nomination form. DBpageAD.qxd 2/26/2008 9:34 AM Page 1

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March 10, 2008 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Largest general contractors. Based on 2007 revenue. 1 Daniel Duggan Barton Malow Co., $1.4 billion. covers real estate 2 Walbridge Aldinger Co., $1.1 billion. and hospitality. 3 Call (313) Skanska USA Building Inc., $486 million. 446-0414 or 4 Roncelli Inc., $236 million. write dduggan 5 Aristeo Construction Co., $216 million. @crain.com. real estate See Page 15 for the complete list.

Daniel Duggan Hopes high for brownfield conference Mix well, then sell One major stream of state money for cleaning up brownfield sites may MIXED-USE PROJECTS UNDER WAY be dry by year’s end. Developers find demand for blend In May, the largest brownfield conference in the United States will be held in Detroit. Michigan sites in of retail, residential, office space need of redevelopment will take center stage at the conference. Is this a problem? “No way,” said Doug Brown, BY DANIEL DUGGAN director for business development CONSTRUCTION PREVIEW CRAIN’S DETROIT BUSINESS for the Brighton-based ASTI Environmental, a sponsor of the here aren’t many retail developments in conference. the pipeline these days. And a lot of the con- Bloomfield Park, Pontiac The Clean Michigan Initiative Bond, T do and office projects have dried up. a $675 million fund approved in 1998, But mix the three, and developers see some de- will be depleted by the end of the year. mand. Michigan Department of Environmental Mixed-use development has become a national Quality Director Steven Chester has been pushing for a possible ballot real estate buzzword, taking the place of the en- issue to bring more funds. closed mall as the darling of the retail world. Lo- “I hope Steve is successful,” cally, there are six large-scale mixed-use develop- Brown said. “Clean Michigan has ments under construction, and more are planned. been a very successful program.” Bill Lichwalla, CEO, “Nationally, cities are realizing they want high- But it’s far from the only source of Plante & Moran Cresa. er levels of density, and the suburbs, which start- money for brownfield investment, ed out as sprawl, are turning Brown said. The U.S. Environmental into more urban areas,” said Broadway Village at Lower Town, Ann Arbor Protection Agency has several funds BIDDERS INCREASE Stan Eichelbaum, a professor of that are often used for brownfield As the number of projects practice in the retail program cleanups. becomes fewer, Bill Lichwalla at Michigan State University. Ur- Between Michigan Business Tax sees more companies ban sites are often more effi- credits, Renaissance Zones and low- competing on smaller projects. cient and profitable, he said. income housing credits, he said, Page 13. there are plenty of economic Though retail is overbuilt as development tools still available to a sector, mixed-use develop- give incentives to developers for ments allow developers to build construction and renovation. Eichelbaum retail for the smaller markets Most important is private money, near the residential develop- which Brown expects to be flowing ments, said Eichelbaum, who is also president of Dearborn Towne Center, Dearborn during the Brownfields 2008 East Lansing-based consulting firm Marketing De- conference May 4-7 at Cobo Center. velopments. “Developers have learned that a lot of Nearly 6,000 people are expected for residents are finding it fabulous to roll out of bed the 12th-annual conference. or walk a few blocks into a retail environment,” The event will feature 150 he said. educational sessions on green The largest local mixed-use projects to be under development, remediation and other construction this year are the Bloomfield Park devel- real estate topics. opment in Pontiac and What’s exciting most local real estate firms is the “transaction the Pavilions of Troy devel- forum” of the event on May 5 from MORE PROJECTS opment in Troy. The $300 10:30 a.m. to 1 p.m. Buyers, sellers Not all the million Pavilions project and financiers will all be put in a construction is in is the redevelopment of room together working on deals. mixed-use. For a list the former Kmart Corp. 4 Eleven Lofts, Ann Arbor So far, Brown said, there are 500 of the area’s 25 headquarters. The first brownfield sites in Michigan that will largest construction phase of Bloomfield Park be part of the forum. The goal is projects, see Page 16. represents about $250 mil- 1,000 sites, he said. See A list of 40 projects lion in construction costs www.brownfields2008.org. NATHAN SKID/CDB over $75 million and and follows eight years of The state will attempt to sell The Pick-Fort Shelby the full research planning and legal and parcels, as will individual cities such redevelopment is expected to database is available other challenges for the as Ferndale and Sterling Heights, be finished this year. for purchase at site. Brown said. www.crainsdetroit.com Both projects will offer “So, you’ll have folks at Cobo from /focus. North Carolina or Texas looking at HOTEL BUILDING BOOMS a blend of retail space with restaurants, resi- sites they can buy in Michigan,” he Hotel construction projects at The Pavilions of Troy, Troy said. 15 sites are expected to add dential units and office space. Firms such as ASTI, which offers 2,235 rooms this year. Not just a big deal in Oakland County suburbs, consulting and remediation services, Page 14. such projects are under way in Ann Arbor, De- are expecting a business bonanza troit and Chesterfield Township. They are also after the conference. So for Brown, part of nearly $9 billion in 2008 construction activ- promoting the conference has been ity tracked by Crain’s for this report. a priority. Broadway Village at Lower Town, a $171 million “There’s going to be $50 billion in project, will include 138,000 square feet of retail net worth here, and all these guys do space, 153,000 square feet of medical office space is rebuild cities,” Brown said. “I’ve and 185 rental residential units. It will be devel- called everyone I’ve known since I was oped by East Lansing-based Strathmore Develop- in junior high. I’ve got 5,000 letters NATHAN SKID/CDB out there. This conference won’t come ment Co. back in any of our lifetimes.” Studio One Apartments, Detroit See Mix, Page 12 DETROIT BUSINESS MAIN 03-10-08 A 12 CDB 3/7/2008 11:18 AM Page 1

FOCUS:REAL ESTATE GET AGGRESSIVE Mix: Blended developments work well with your Receivables ■ From Page 11 Why spend time and money Chicago-based Joseph Freed and Associates has the 4 losing money or not reducing Eleven lofts under construction in Ann Arbor, bringing a 10-story building with student housing and retail un- your receivables? derneath. • Expertise in commercial collection and In Detroit, the Studio One Apartments, under construc- litigation on behalf of suppliers, general tion on Woodward Avenue in Midtown, will bring 124 contractors and others market-rate rental units and 30,000 square feet of retail space developed by Grand Rapids-based Prime Develop- Robert E. Taub, P.C. • Construction lien foreclosure and ment. other remedies Marcel Burgler, a principal with Prime, said there is Innovative a benefit to leasing retail and residential spaces togeth- law firm • Retrievals from hard to collect debtors er. Residents are excited about the idea of retail spaces – so close to their homes, and retailers like the idea of a 30 years • Post judgment collection that ACTUALLY captive group of customers. experience GETS YOU MONEY “The retailers think of (the residential) as an added • Litigation in bankruptcy benefit,” he said. “It’s not the reason they want to be Flexible there; they want to be there for the location.” financial CONTACT ROBERT E. TAUB, P.C. The strength of mixing uses also works when pro- 28004 CENTER OAKS CT., #103, WIXOM, MI 48393, jects have medical components, said Dale Watchowski, arrangements (248) 348-5773 • [email protected] CEO of Southfield-based developer Redico L.L.C. net you money VISIT US AT: www.taublawyer.com Redico is developing a former Montgomery Ward site in Dearborn into a $60 million retail, medical and senior housing project called Dearborn Town Center. Dearborn-based Oakwood Healthcare Inc. leased 125,000 The C.S. Mott Children’s and Women’s Hospital project square feet of medical space, and Bloomfield Hills-based includes 12 in-patient floors and nine clinic floors. American House will oversee the senior housing. “There will be a symbiotic relationship with the uses UM TOPS IN CONSTRUCTION BIDS supporting each other,” he said in a December inter- The University of Michigan is the most active view. “The medical component gives comfort to the peo- educational institution when it comes to construction TESTING ENGINEERS ple living in the senior housing. The retail works with bids. Here are some of its biggest 2008 projects: the senior housing because the residents can walk Ⅲ C.S. Mott Children’s and Women’s Hospital & CONSULTANTS, INC. across the boulevard and go to the pharmacy or buy a replacement project, $523 million. cup of coffee.” Ⅲ University of Michigan Stadium renovation and Mixed-use construction activity is among the leading expansion, $226 million. • Building and Infrastructure categories of construction tracked by Crain’s for this re- Ⅲ UM North Quad Complex, $175 million. • Environmental Services port. Contractors, architects and property owners sub- Ⅲ UM Ross School of Business, $145 million. • Geotechnical Services mitted information on more than 100 projects. Ⅲ UM Eye Center expansion, $132 million. • Indoor Air Quality Ⅲ UM Mosher Jordan Residence Hall renovation and • Asbestos/Lead/Mold Health care dominant new dining hall, $65.1 million. Ⅲ UM Charles R. Walgreen Jr. Drama Center, $42.8 • Construction Materials Testing The largest category of commercial projects in the • Safety Training million. The center will house the Arthur Miller Theatre, pipeline is from the health care sector. with seating for about 250 people, the theater and Construction is under way for the $420 million, drama departments, and a 460-person auditorium. 1-800-835-2654 780,000 square-foot Beaumont Hospital expansion project Ⅲ UM Alumni Memorial Hall Museum of Art addition email: [email protected] at the hospital system’s Troy location. and renovation, $35.4 million. www.testingengineers.com Henry Ford Health System is building a $350 million, Ⅲ UM Medical Science Units I and II renovations, Offices in: Ann Arbor, Detroit & Troy 300-bed hospital in West Bloomfield Township. McLaren $16.8 million. Renovation to provide updated A Certified WBE/DBB Health Care Corp. is developing the McLaren Health Village laboratory and support spaces for biomedical research. in Independence Township, a $300 million, 1.2 million- Ⅲ UM David M. French Hall renovations, $9.35 million. square-foot medical center. And St. Joseph Mercy Health Source: UM System is building an 11-story patient tower in Ann Ar- bor. Chrysler L.L.C. is building a $730 million plant in Tren- Detroit will see the $163 million St. John Hospital proton. This was the largest individual project on the list Engineering Client Success ject and the $154 million Henry Ford Hospital expan- researched for this report. (See page 16). sion. The 822,000-square-foot plant will employ 485 people Medical office buildings, ambulatory care centers and produce V6 engines for several Chrysler vehicles, and assisted living facilities also are being built in ar- according to company statements. The plan is to in- eas near the large hospitals and health care centers. clude continuous windows and column-free open of- Les Snyder III, COO for Southfield-based Barton Mal- fices. ow Co., said health care easily remains the hottest sec- In addition to that project, General Motors Corp. is tor right now. spending $285 million to expand its power-train opera- “Like any technology-oriented business, you have tion in Pontiac. Toyota Motor Co. is building a $150 mil- NOW LEASING changes happening so rapidly the institutions have to NOW LEASING lion engineering office in York Township. stay updated in order to be competitive,” he said. Two speculative industrial buildings are planned by Class “A” Ofﬁ ce z Just East of The Somerset Collection z Abundant Parking with Multiple Building Entrances “That’s combined with the aging population in need of care.” Sterling Heights-based Mode Development Inc. in Dennis McCafferty, director of health policy at the Chesterfield Township with 75,000 and 33,000 square Novi-based Economic Alliance for Michigan, said the feet available, said Jason Capitani, executive vice presi- growth in health care is based on the health systems dent with Troy-based L. Mason Capitani, which is leasing chasing high-income residents across the metropolitan the buildings. area. But overall, he said, the demand for new construc- “The medical community is following the sprawl, tion of industrial buildings has been from users with chasing the patients who have the best insurance,” he very specific needs. said. “They might need something within a certain radius His organization has adopted the stance that there is of an intersection with a certain ceiling height, with too much growth in the medical community. Yet the four truck wells and four cranes,” he said. “It depends sector has more building in the planning stages. WILSHIRE PLAZA NORTH WILSHIRE PLAZA WEST on the end user and how flexible they can be on issues There are $446 million of health care projects in the 900 Wilshire Dr. Troy, MI 1050 Wilshire Dr. Troy, MI like price and geography,” he said. design phase awaiting construction in Oakland, Wayne The industrial development is coming back slowly Suites From 1,031 to 11,187 SF Suites From 1,341 to 15,566 SF and Macomb counties, according to research completed because of the massive amounts of vacant space on the For More Information, Please Call: by the Bloomfield Hills-based Construction Association of Michigan. market. Tenants shopping for space in the area can find 248.324.2000 deals by leasing rather than building. “As much as you hear about it being a buyer’s mar- Commercial and industrial ket, it’s really a tenant’s market,” he said. “You can ne- Though shadowed in total volume by health care, ed- gotiate some very favorable terms right now to where it www.friedmanrealestate.com ucation and publicly funded projects, there are several makes a lot of sense to use something existing.” industrial projects under construction in 2008. Daniel Duggan: (313) 446-0414; [email protected] DETROIT BUSINESS MAIN 03-10-08 A 13 CDB 3/7/2008 10:23 AM Page 1

FOCUS:REAL ESTATE Construction companies think smaller, find niches as projects become fewer

BY DANIEL DUGGAN To be success- then we have to help them get the CRAIN’S DETROIT BUSINESS ful in getting bond issue passed. If we don’t get projects in the bond issue passed, there’s no DĐDĂŶƵƐŝƐƟŶŐƵŝƐŚĞĚ When the biding process for a $1 Southeast project.” million gun range in Novi was Michigan, Kirk Frownfelter, general man- Business Lecture opened to construction firms, 12 Steven Berlage, ager of the Southfield office for bidders stepped forward. general manag- Skanska USA Building Inc., said the Five years ago, a job of that size er of the Detroit key to getting jobs is to do good presents likely would have drawn four, office of New work. Sometimes the lowest bid- maybe five, bidders, said Bill Lich- York-based Turn- der simply doesn’t have the exper- :ŝŵƌŽĐĞ͕K͕EĞǆƚŶĞƌŐǇ walla, CEO of Berlage er Construction tise needed. Plante & Moran Co., said the key “A lot is based on your reputa- Cresa, which is is to be a company with diverse tion,” he said. “We have a portfolio ͞dŚĞ'ƌĞĞŶ'ŝĂŶƚ͗&ŝŶĚŝŶŐ overseeing the skills. Berlage said his company’s of good owners who won’t always selection of a national reach helps it land some ĐŽŶŽŵŝĐKƉƉŽƌƚƵŶŝƚǇŝŶ construction take the lowest bid.” of the larger local projects still in Given the short supply of jobs in firm for the the pipeline. ƚŚĞŵĞƌŐŝŶŐůƚĞƌŶĂƟǀĞ Novi project. the region, giving the bad news to Turner is building the $350 mil- companies is harder than it used The same lion Henry Ford Health System hospi- ŶĞƌŐǇ^ĞĐƚŽƌ͟ went for a $1 to be, said Monte Oberlee, admin- tal in West Bloomfield Township, istrator of environmental care ser- million roofing for example. Lichwalla vices at Crittenton Hospital Medical project in the “That’s a large project,” he said. tĞĚŶĞƐĚĂǇ͕DĂƌĐŚϭϵ͕ϮϬϬϴ Center in Rochester Hills. Clarenceville School District, which “Very few firms are in a position He recently chose a construc- drew 13 firms two weeks ago. to be able to deliver a project like ϳƉ͘ŵ͘ tion manager for a 30,000-square- “There’re a lot more firms with that. We have a large amount of re- foot cancer center in Rochester Madonna University Kresge Hall a desire to be involved in projects sources backing us up.” Hills. like this right now,” Lichwalla Les Snyder III, however, says ϯϲϲϬϬ^ĐŚŽŽůĐƌĂŌZŽĂĚͻ>ŝǀŽŶŝĂ͕D/ϰϴϭϱϬ “There was an awful lot more said. the way to get business is to have passion and emotion involved this While there are construction strength in nich- &ŽƌŝŶĨŽƌŵĂƟŽŶ͕ĐĂůůϳϯϰͲϰϯϮͲϱϯϱϲ time,” he said. “We contacted six projects about to come up for bid es rather than firms, interviewed three and chose — $12.7 billion worth, according to be a generalist. one. They all worked hard, and I Hosted by the School of Business the Construction Association of Michi- Snyder, COO really felt it when I had to notify gan — there aren’t as many proof Southfield- jects as in past years. And there based Barton the firms that they didn’t get the /ŶƐƉŝƌŝŶŐŶƚƌĞƉƌĞŶĞƵƌƐ are more modest projects than Malow Co., job.” very large projects. points to the Daniel Duggan: (313) 446-0414; [email protected] Construction firms are relying $226 million Uni- on their good track records or de- versity of Michi- veloping expertise in specific nich- Snyder gan stadium ren- es to get the job. ovation and The competitive trends have expansion his firm is building. been good news for the project “That’s a specialty niche we have,” he said. “We’re one of four owners paying the bills. Construc- or five companies in the country tion executives say there’s been a with a sports niche.” steady trend of cutting labor But the final award of the work costs. isn’t always from the developer. “We’ve seen a lot more competi- Education projects, for example, “Our passion for client service tion and a lot less sanity when it bring the challenge of sometimes comes to pricing,” said Joe Vig, needing voter approval first. can lift your spirits, too”. president of Taylor-based J.S. Vig “In K-12, it’s like you have to Construction Co. “In competing for win those twice,” Snyder said. “We jobs, our fee structure has come win when the school board selects down a little.” us as a construction manager, but

Passion for serving our clients, technical expertise, and partner involvement have Mark Stutman been the hallmark of Grant Thornton LLP Managing Partner -Tax in the U.S. for more than 80 years. Plus, you get the benefit of Grant Thornton International member firms in 112 countries around the world. Give Paul Wolber, Managing Partner a call at 248.213.4207 or contact us at www.GrantThornton.com. Find out how it feels to work with people who love what they do!

Audit • Tax • Advisory www.GrantThornton.com DETROIT BUSINESS MAIN 03-10-08 A 14 CDB 3/7/2008 10:22 AM Page 1

FOCUS:REAL ESTATE Rise in occupancy rate fuels area hotel building boom

BY JONATHAN EPPLEY most half of those rooms in three October, a $180 million project, SPECIAL TO CRAIN’S DETROIT BUSINESS downtown Detroit hotels. The re- and the 204-room Fort Shelby, in- search group said construction is cluding the Hilton Hotel Corp.-oper- A modest increase in hotel occu- already under way at 10 of the 15 ated hotel, is expected to open in pancy is helping to fuel new con- sites, which accounts for 78.5 per- December at a cost of $82 million. struction and renovation projects cent of the total rooms to be added The remaining local projects are in metro Detroit. to the region. in the suburbs. Novi expects to see The region’s yearly occupancy Michael O’Callaghan, executive the opening of three hotels this rate increased 2.8 percent to 58.6 vice president and COO for the year: a 146-room Hilton Garden Inn, a Metropolitan De- percent in 2007, according to Smith 108-room Staybridge Suites and a 92- troit Convention & Travel Research, the Henderson- room Holiday Inn Express. Visitors Bureau, ville, Tenn.-based hospitality re- In northern Oakland County, said investors search group. realize this is a projects under way include a 103- Hotel construction projects at 15 good time to in- room Springhill Suites in Auburn sites are expected to add 2,235 vest. Hills and a 102-room Springhill rooms to the area in 2008, with al- “I think right Suites in Lake Orion. In addition, now this is alan 80-room Holiday Inn Express is most a buyer’s in the works for Chesterfield market,” he Township and a 63-room Comfort said. “We’ve O’Callaghan Suites is under way in Canton seen more positive growth than Township many other areas across the U.S. Hotels still in the planning “As long as we continue to pro- stages, but expected to open in mote ourselves, we’ll be doing all 2008, include a 119-room Springhill right.” Suites in Romulus, a 107-room Detroit is at the bottom rung of Homewood Suites in Auburn Hills, a the top 25 markets, exceeding only 90-room Hampton Inn & Suites in New Orleans in occupancy. How- Canton Township, an 83-room Can- ever, its improvement from 2006 to dlewood Suites in Chesterfield 2007 outperformed every city on Township and an 82-room Hampton the list besides San Francisco. St. Inn in Shelby Township. Louis, Virginia Beach and Dallas The building boom will give the recorded occupancy rates just over city drawing power for more and 60 percent. New York reported 83.7 bigger conventions, said Renee percent occupancy. Monforton, director of communi- The large Detroit projects ex- cations for the Detroit Visitors Bu- pected to open in 2008 include the reau. hotel at Greektown Casino, the reno- It also could help make the case vation of the Westin Book Cadillac for an expanded Cobo Center. and the redevelopment of the Pick- Ron Wilson, CEO of Troy-based Fort Shelby into the Fort Shelby Dou- bleTree Suites. All three are expect- Hotel Investment Services, said the ed to open by the end of the year. rise in hospitality offerings should The casino expects to open its 400- help support any expansion and room hotel in October as part of its renovation plan for Cobo. Other- $200 million hotel, parking garage wise, Detroit event staples like the and theater expansion. It will be the North American International Auto last of the Detroit casinos to open a Show might leave Detroit for more permanent hotel structure. MotorCi- appealing offers in other cities, ty Casino and MGM Grand Detroit Casi- Wilson said. no each opened a 400-room hotel in “Detroit is economically attrac- fall 2007. tive, and we need to have the ex- The renovated 455-room Book panded Cobo to have that (hotel) Cadillac is expected to reopen in occupancy work,” he said.

ESD hosts conference on dispute

At the Kitch firm, we know that a successful construction project begins with a strong foundation – resolution for contractors, owners on paper. Our firm’s expertise in construction contracts can provide owners with assurance that A March 18 event seeks to help highway project their vision will be effectively communicated through coordinated documents that clearly defi ne contractors and building owners in the United resolve disputes. States. the expectations for all parties involved. Universities, hospitals and many other businesses have The Engineering Society of Detroit is The confer- come to rely on us. To draft exceptional contracts. Review existing ones. And resolve disputes. offering the conference to help shed ence will con- light on the topic and offer tips. clude with panel Let Kitch Drutchas Wagner Valitutti & Sherbrook help get your building off the ground. The event, which runs 8 a.m.- discussions on noon at The Detroit Golf Club, will dispute resolu- address the merits and pitfalls of tion and will in- real-time alternative dispute reso- clude project lution and will feature a keynote Merrill owners, con- speech by Peter Merrill, president struction attor- of Construction Dispute Resolution neys and others. Services, Santa Fe, N.M. The cost is $75 for ESD members Attendees also will receive an or $95 for nonmembers. For more Call John Sier today overview of the dispute resolution information, visit www.esd.org or 313.965.2915 www.kitch.com on Boston’s Big Dig. It has been the call Della Cassia at (248) 353-0735, most expensive and controversial ext. 4112. DETROIT BUSINESS MAIN 03-10-08 A 15 CDB 3/7/2008 10:20 AM Page 1

CRAIN'S LIST: LARGEST GENERAL CONTRACTORS Ranked by 2007 revenue

Detroit Value of Value of Total Total area Company Revenue Revenue new contracts new contracts Local projects projects projects Address Top local ($000,000) ($000,000) ($000,000) ($000,000) employees started started started Rank Phone; Web site executive 2007 2006 2007 2006 Jan. '06 2007 2006 2007 Barton Malow Co. Ben Maibach III $1,368.9 $1,377.4 NA $1,146.1 NA NA 710 NA 1. 26500 American Drive, Southfield 48034 chairman, president and (248) 436-5000; www.bartonmalow.com CEO

Walbridge Aldinger Co. John Rakolta Jr. 1,100.0 900.0 1,200.0 1,250.0 450 73 86 25 2. 777 Woodward Ave., Suite 300, Detroit 48226 chairman and CEO (313) 963-8000; www.walbridge.com

Skanska USA Building Inc. George Fadool 486.0 464.5 385.0 435.0 282 30 58 22 3. 26100 American Drive, Suite 200, Southfield 48034-2367 co-COO (248) 351-8300; www.skanska.com

Roncelli Inc. Gary Roncelli 236.0 201.0 199.0 239.0 220 32 48 29 4. 6471 Metropolitan Parkway, Sterling Heights 48312 CEO and president (586) 264-2060; www.roncelli-inc.com

Aristeo Construction Co. Joseph Aristeo 216.0 126.0 198.9 95.0 400 1,200 1,033 880 5. 12811 Farmington Road, Livonia 48150 president (734) 427-9111; www.aristeo.com

Commercial Contracting Group William Pettibone 207.0 193.0 148.0 95.0 133 133 65 54 6. 4260 N. Atlantic Blvd., Auburn Hills 48439 chairman (248) 209-0500; www.cccnetwork.com

Turner Construction Co. Steven Berlage 171.4 252.1 307.3 355.2 100 31 28 28 7. 535 Griswold St., Suite 200, Detroit 48226 vice president and general (313) 596-0500; www.turnerconstruction.com/michigan manager

George W. Auch Co. David Hamilton 154.8 164.5 230.1 226.3 92 177 174 177 8. 735 S. Paddock St., Pontiac 48341 chairman and CEO (248) 334-2000; www.auchconstruction.com

Colasanti Construction Services Inc. Keith Colasanti 135.2 100.4 88.5 189.6 385 9 9 5 9. 672 Woodbridge, Suite 100, Detroit 48226 president (313) 567-0060; www.colasantigroup.com

Ideal Contracting L.L.C. Loren Venegas, president 127.3 132.4 72.2 164.3 112 582 537 579 10. 2525 Clark St., Detroit 48209 Greg Sorrentino, vice (313) 843-8000; www.idealcontracting.com president

Alberici Constructors Inc. Mark Okroy 112.6 64.5 141.9 180.0 90 80 102 21 11. 13040 Merriman Road, Livonia 48150 general manager and vice (734) 367-2500; www.alberici.com president

DeMaria Building Co. Inc. Richard DeMaria, CEO 111.3 106.9 100.6 100.8 165 86 91 86 12. 3031 W. Grand Blvd., Suite 624, Detroit 48202 Joseph DeMaria Jr., (313) 870-2800; www.demariabuild.com president

Walsh Construction Co. Sam Bahou 105.0 85.0 50.0 100.0 100 80 120 2 13. 3011 W. Grand Blvd., Suite 2300, Detroit 48202 program manager (313) 873-6600; www.walshgroup.com

J.M. Olson Corp. John Olson 98.0 113.0 113.1 169.0 50 30 35 15 14. 26210 Harper Ave., St. Clair Shores 48081 chairman and CEO (586) 771-9330; www.jmolson.com

Clayco Mark Tomasik 73.0 69.0 85.0 60.0 16 7 6 1 15. 19500 Victor Parkway, Suite 375, Livonia 48152 senior regional vice (734) 462-0200; www.claycorp.com president

FH Martin Constructors R. Andrew Martin Jr. 70.1 80.9 75.6 98.0 50 40 48 31 16. 28740 Mound Road, Warren 48092 president (586) 558-2100; www.fhmartin.com

J.S. Vig Construction Co. Joseph Vig 64.6 19.3 NA 60.0 22 12 7 10 17. 16650 Racho Road, Taylor 48180 president (734) 283-3002; www.jsvig.com

DeMattia Group Gary Roberts 62.7 71.4 48.6 57.6 57 12 11 7 18. 45501 Helm St., Plymouth 48170 AIA president and CEO (734) 453-2000; www.demattia.com

Jenkins Construction Inc. James Jenkins Jr. 58.6 30.2 NA 52.8 60 NA 8 NA 19. 985 E. Jefferson Ave., Suite 300, Detroit 48207 CEO and president (313) 625-7200; www.jenkinsconstruction.com

Micco Construction L.L.C. Robert Washer 56.1 54.4 40.7 NA 38 19 20 9 20. 715 Auburn Road, Pontiac 48343 executive vice president (248) 334-7753; www.miccoconstruction.com

Frank Rewold and Son Inc. Roy Rewold 50.5 77.6 65.0 56.0 60 18 19 18 21. 333 E. Second St., Rochester 48307 CEO (248) 601-1215; www.frankrewold.com

Kasco Inc. Stephen Kassab, president 46.0 44.0 35.0 30.0 45 35 60 40 22. 226 E. Hudson St., Royal Oak 48067 Michael Engle, vice (248) 547-1210; www.kascoinc.com president estimating and business development Campbell/Manix Inc. Douglas Manix 40.0 45.0 35.0 50.0 25 15 15 15 23. 21520 Bridge St., Southfield 48033 president (248) 354-5100; www.campbell-manix.com

Oliver/Hatcher Construction & Development Inc. Paul Hatcher, president 38.0 47.7 NA NA 24 NA NA NA 24. 27333 Meadowbrook Road, Suite 100, Novi 48377 Paul Oliver, principal (248) 374-1100; www.oliverhatcher.com

O'Brien Construction Co. Inc. Timothy O'Brien 37.5 18.3 34.0 39.5 22 17 12 17 25. 1735 Highwood, Pontiac 48340 president (248) 334-2470; www.obriencc.com

This list of general contractors is a compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Companies with headquarters in the Detroit area are listed with their total company revenue, and companies with headquarters outside the area are listed with the revenue of their local operations only. Unless otherwise noted, information was provided by the companies. NA = not available. LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH DETROIT BUSINESS MAIN 03-10-08 A 16 CDB 3/7/2008 3:16 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 10, 2008 CRAIN'S LIST: LARGESTCRAIN'S LARGESTCONSTRUCTION CONSTRUCTION PROJECTS PROJECTS

Start date General Project name Estimated cost Completion target contractor/Constuction Rank City Square feet of project date Owner/Developer manager Architect Project description 1. Phoenix Engine Program $730,000,000 2007 Chrysler L.L.C. Walbridge Aldinger Co. BEI Associates Inc., Harley Engine plant Trenton 822,000 2008 Ellis Devereaux C. S. Mott Children's and Women's $523,000,000 October 2006 The Regents of the Barton Malow Co. HKS Architect P.C. Replacement hospital project with 12 inpatient floors and nine 2. Hospital Replacement 1,100,000 June 2011 University of clinic floors Ann Arbor Michigan Beaumont Hospital Troy, site $420,000,000 2007 Beaumont Hospitals Barton Malow Co. and Harley Ellis Devereaux Emergency center addition, a critical care tower, the addition master plan 180,000 phased completion Skanska USA Building Inc. of three floors to the west tower, an outpatient services center, 3. Troy renovations; dates; final and infrastructure improvements 600,000 new occupancy in 2012 construction Detroit Metropolitan Airport $418,000,000 2005 Wayne County Walbridge Aldinger Co. and Lead: Gensler. Associate: 26-gate terminal complex being designed to replace the 4. North Terminal Redevelopment 824,000 2008 Airport Authority Barton Malow Co. Ghafari. Supporting: airport's older Smith & Berry terminal complex Romulus Hamilton Anderson, Scales Henry Ford West Bloomfield $350,000,000 October 2005 Henry Ford Health Turner Construction Co. Albert Kahn Associates Inc. 300-bed hospital and wellness center with a patient-focused 5. Hospital 677,000 March 2009 System design. The Henry Ford West Bloomfield Hospital is West Bloomfield anticipating LEED Silver Certification. McLaren Health Village $300,000,000 May 2007 McLaren Health Care George W. Auch Co. RTKL, Chicago; Hobbs + Ambulatory surgery center, diagnostic imaging center, urgent Independence Township 1,168,000 Spring 2009 Black care center, physical therapy, occupational therapy and sports 6. medicine, spine center, sleep disorders center, dialysis center, physician offices, other services Pavillions of Troy $300,000,000 June 2008 BlackRock Inc., Boorn NA Rossetti Mixed-use redevelopment Troy 535,000 Fall 2010 Partners and 6. Richardson Development Group Gambling, hotel and entertainment complex. MotorCity Casino L.L.C. $300,000,000 November 2005 Detroit Entertainment Michigan Industrial Group Giffels Inc.Convention Gambling, space, hotel theater and and entertainment more gaming complex space to open. 6. permanent casino 100,000 B 2008 L.L.C. Detroit General Motors Powertrain $285,000,000 C January 2007 General Motors Corp. Roncelli Inc. and Clark FES Group, Giffels Inc. Consolidation of southeast Michigan power-train engineering 9. expansion Phase II 296,445 January 2009 Construction Co. into one location Pontiac St. Joseph Mercy Hospital $258,000,000 Fall 2004 St. Joseph Mercy The Christman Co. HKS Design 11-story patient tower complete in December 2007; Ann Arbor 660,000 2011 Health System demolition of one patient tower and construction of new tower 10. to be complete by 2010; demolition of second old tower and construction of new entrance and new chapel to be complete in 2011 Fox Run $256,000,000 2002 Erickson Communities J.M. Olson Corp. NSA Architects, Engineers, Retirement community of three neighborhoods, totaling 1,442 11. Novi 2,300,000 2010 Planners apartment units with a clubhouse in each neighborhood, unit on 102 acres Bloomfield Park- Phase I D $250,000,000 October 2007 Developers IMC Construction Elkus Manfredi Architects, Retail, offices and residential Bloomfield Hills 800,000 2009 Diversified Realty, Meacham & Apel 12. Coventry Real Esate Architects Advisors and Harbor Cos. University of Michigan Football $226,000,000 November 2007 University of Barton Malow Co. HNTB Corp. Includes replacement of all bleachers, widening of individual 13. Stadium Expansion and Renovation 400,000 June 2010 Michigan seats, addition of luxury boxes and east side of stadium, Ann Arbor expansion of press box, and addition of upper-deck seating St. John Providence Park Additions $224,000,000 October 2005 St. John Health Barton Malow Co. NBBJ Hospital, medical office, neuroscience building, outpatient 14. Novi 770,000 August 2008 surgery building, extended stay hotel, and health and prevention-oriented retail Greektown Casino permanent $200,000,000 February 2006 Sault Ste. Marie Tribe Jenkins Construction Inc. Hnedak Bobo Group, Permanent casino 15. casino 451,439 October 2008 of Chippewa Indians and Skanska USA Building Rossetti, SDG Design and Detroit Inc. Rich and Associates 16. @water Lofts $193,000,000 2006 Dwight Belyue and NA Rossetti Riverfront condo and retail mixed-use development Detroit 9 acres 2009 Belmar Development Book Cadillac $176,000,000 August 2006 Cadillac Development Jenkins Construction Inc. Kaczmar Architects Inc., Renovation of the historic 450-room hotel, adding 50 to 70 Detroit 775,723 Spring 2008 Co. and Marous Bros. Madison Madison condominiums 17. Construction International, Hamilton Anderson Associates Inc. UM North Quad Residential and $175,000,000 May 2007 University of Walbridge Aldinger Co. Robert A.M. Stern Residential and academic complex 18. Academic Complex 360,000 July 2010 Michigan Architects and Einhorn Ann Arbor Yaffee Prescott 19. Broadway Village at Lower Town $171,000,000 January 2008 Strathmore Clark Construction Co. Smith Group and Carl Residential, retail and office Ann Arbor 800,000 February 2010 Development Co. Walker St. John Hospital Van Elslander $163,000,000 May 2005 St. John Health Skanska USA Building Inc. Harley Ellis Devereaux Seven-story North Pavilion will be the first of two new patient 20. North Pavilion and Materials 307,752 June 2008 and L.S. Brinker bed and diagnostic and treatment towers Management Building Detroit Henry Ford Hospital $154,000,000 2007 Henry Ford Health Auch/ W3 and Harley Ellis Devereaux, Two-story addition to add private rooms, expand the 21. Detroit NA 2009 System Kasco/DeMaria Hobbs + Black, SSOE Inc. intensive-care unit and operating facilities and improve infrastructure Toyota Engineering Office Building $150,000,000 Mid-2006 Toyota Motor Walbridge Aldinger Co. SSOE Inc. Three-story engineering office building York Township 350,000 Mid-2008 Engineering and 22. Manufacturing North America University of Michigan Ross School $145,000,000 Spring 2006 University of Clark Construction Co. and Kohn Pederson Fox New building of seven floors housing 12 classrooms, an 23. of Business 270,000 Fall 2008 Michigan Gilbane Co. Associates auditorium and colloquium, faculty offices, student service Ann Arbor activities space and a central gathering space that will provide seating and a food court 24. Pinnacle Race Course $142,000,000 March 2008 Post It Stables Inc. Roncelli Inc. Ghafari Horse race track, club house, corporate pavillion, jockey's Huron Township 440,000 June 2009 quarters, grooming quarters, horse barns and other facilities University of Michigan Kellogg Eye $132,000,000 February 2007 The Regents of the Gilbane Building Co. and TSA of Massachusetts The new eight-floor building will house an expansion of the 25. Center and Brehm Diabetes Center 222,000 Winter 2009 University of Clark Construction Co. L.L.P. U-M W.K. Kellogg Eye Center's clinics and laboratories, and Ann Arbor Michigan two floors of research facilities focused on diabetes ①Square footage of gaming space ②Crain’s estimate ③Total project size is 2,000,000 CRAIN'S LIST: SCHOOL PROJECTS Start date Project name Completion target General contractor/Constuction Rank Estimated cost date manager Architect Project description Ann Arbor Public Schools September 2004 Barton Malow Co. TMP Associates Inc. Renovations, additions, modernization and upgrading of all elementary school and middle school 1. $241,086,555 August 2009 facilities in the district

L'Anse Creuse Public Schools August 2005 Barton Malow Co. TMP Associates Inc. Classroom additions to existing high school, competitive gym and music room addition, new 2. $210,585,000 December 2014 cafeteria, elementary school remodel, technical equipment

Chippewa Valley Schools February 2005 Barton Malow Co. French Associates Inc. New elementary school, new middle school, plus conversion of existing middle school into 3. $168,000,000 December 2009 Freshman Center

Utica Community Schools June 2003 Barton Malow Co. TMP Associates Inc. New cosntruction of elementary schools, renovations and additions to existing schools 4. $142,000,000 October 2008

Troy School District April 2004 Barton Malow Co. Kingscott Associates Inc. New middle school; additions and renovations 12 existing elementary schools, renovations to 4 5. $125,000,000 December 2008 existing middle schools; addition to Troy High School, renovation to Athens High School, renovations at five support facilities

LISTSLIST RESEARCHED RESEARCHED BY LEAHBY DANIEL BOYD AND DUGGAN, ANNE MARKS ANNE MARKS AND LEAH BOYD. THESE LISTS ARE AN APPROXIMATE COMPILATION OF PROJECTS PLANNED OR UNDER CONSTRUCTION. IT IS NOT A COMPLETE LISTING BUT THE BEST AVAILABLE. DBpageAD.qxd 3/4/2008 3:13 PM Page 1 DETROIT BUSINESS MAIN 03-10-08 A 18 CDB 3/7/2008 10:32 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 10, 2008 PEOPLE EDUCATION international avaiation practice, Wa- Michael Check to president, automo- ners Convergence Marketing, Birm- chovia Insurance Services, Detroit. tive and transportation business, ingham, continuing as leader, health Dan Smith to state relations director, IN THE SPOTLIGHT Bunkspeed Inc., Detroit, from general care division. Oakland University, Rochester Hills, manager, The Underground World from director of government rela- Barbara Novak has been appointed FOOD Pamela Kam- Corp., Detroit. tions, the Detroit Regional Chamber, vice president and corporate Asi Sheikh to executive vice president, mann to director Detroit. secretary at Troy-based auto Team U.S.A., Domino’s Pizza Inc., Ann Larry Goldman to sales manager for of operations, North America, SupplyOn North Amer- Jaime Straka to supplier ArvinMeritor Inc. (NYSE: Arbor, from director of corporate op- Identity Market- ica Inc., Bloomfield Hills, from pro accounting super- ARM). erations. Also, Scott Hinshaw to exec- ing & Public Rela- bono consultant for new business de- visor, The Art In- Novak had been senior counsel, utive vice president, franchise operations, Bingham stitute of Michi- tions, from executive vice president, velopment and marketing to Detroit- Farms, from of- securities, at TRW Automotive area startup businesses, Royal Oak. gan, Novi, from Holdings Corp. in Livonia. Team U.S.A. fice manager. assistant business She holds a bachelor of arts LAW manager and degree from the University of HEALTH CARE SERVICES credit manager, Michigan and a juris doctorate Lisa Rutledge to Richard Gottlieb WSMH-TV, Flint. to leader, finan- Edward Wyszumi- from Harvard Law School. corporate direc- Kammann ala to general tor of community cial institutions Novak will continue as an adjunct manager, dietary supplements, func- FINANCE outreach, Oak- team, Dykema professor at the University of Gossett P.L.L.C., tional foods and athletic banned sub- to wood Healthcare Straka Jeffrey Brown Michigan Law School. Detroit, from stances certification programs, NSF broker, Burns & Inc., Dearborn, member, Chicago International, Ann Arbor, from ac- Wilcox, Farmington Hills, from pro- manager, Maddox Ungar Silberstein from manager, office manage- count manager, dietary supplement gram manager, Meadowbrook Insur- P.L.L.C., Bingham Farms, from CFO, community bene- ment committee. programs. ance Group, Southfield. Media Partners L.L.C., Southfield. fit. Also, Roy Sex- D. Jennifer An- Brian Pilarski to associate, The Ster- ton to corporate Douglas Guldan dreou to practice ling Insurance Group, Sterling director of strate- to vice president group leader, Heights, from sales executive, Lexis- gic communica- PEOPLE GUIDELINES of construction, Rutledge tions and plan- Gottlieb medical liability Kapnick Insur- Nexis, Royal Oak. Also, Pamela Kelly Announcements are limited to to associate, from commercial produc- ning, from corporate director, practice group, ance Group, planning. Plunkett Cooney, management positions. Nonprofit Southfield, from er, The Cardinal Agency, Shelby and industry group board Township. Julie Pacheco- Mt. Clemens, vice president from shareholder. appointments can be found at practice group Mary Healy Zales- Smith to director, Steven Ober- www.crainsdetroit.com. Send sales leader — ki to vice presi- on-site child care holtzer, managing submissions for People to Joanne construction divi- dent, marketing center, Botsford partner, Brinks Scharich, Crain’s Detroit Business, sion, Marsh, De- manager, Eastern Hospital, Farm- Hofer Gilson & Li- 1155 Gratiot Ave., Detroit, MI troit. Michigan region, ington Hills, from lead teacher in one, Ann Arbor, 48207-2997, or send e-mail to Guldan Clifford Holmyard Fifth Third Bank, the center’s tod- to a second term to principal, The Rehmann Group, Southfield, from [email protected]. Releases on the firm’s Troy, from senior manager. Also, management con- dler room. must contain the person’s name, board of direc- Mike Powell to senior manager, from sultant, global Andreou new title, company, city in which tors. manager. corporate commu- INFO/TECHNOLOGY the person will work, former title, Thomas Schramm to partner, Nemeth John Lewis to managing director, Don- nications, Feder- Pacheco-Smith Indraneel Ganguli former company (if not promoted nelly Penman & Partners, Grosse al-Mogul Corp., to chief market- Burwell P.C., Detroit, from senior at- from within) and former city in Zaleski torney. Pointe, continuing as adviser to the Southfield. ing officer, Incat, Novi, from vice pres- which the person worked. Photos Donnelly Penman Financial Services Bryan Schafer to senior vice presi- ident of global marketing and commu- are welcome, but we cannot Fund. dent, Willis Global Aviation, Willis of nications, Satyam, Qutubullapur MARKETING guarantee they will be used. David Kobylarek to tax and accounting Michigan Inc., Novi, from manager of Mandal, RR District, India. Julia Shea to partner, Brogan & Part- FINALLY, YOU HAVE A CHOICE

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March 10, 2008 CRAIN’S DETROIT BUSINESS Page 19 Solution sought to continue sickle-cell outpatient care One step above

BY JAY GREENE creates a profit, but when (a hospi- CRAIN’S DETROIT BUSINESS tal) runs a clinic, it creates a deficit,” Parisi said. Officials at the Wayne State Univer- Mike Duggan, DMC’s president sity School of Medicine and The Detroit and CEO, said DMC is working Medical Center are working to en- closely with Karmanos to ensure sure that outpatient care for sickle- the sickle-cell clinic continues. He cell patients continues at Barbara said he expects to resolve the clin- Ann Karmanos Cancer Institute. ic location soon and that it will not Unless DMC, WSU and Kar- interfere with patient care. manos reach a new agreement by “Karmanos may end up keeping April 30, care for sickle-cell pa- the clinic,” he said. tients at Karmanos may end, said Patricia Ellis, media relations Dr. Valerie Parisi, WSU’s vice manager with Karmanos, con- dean for hospital relations. firmed in a statement that discus- Under a 2005 agreement between sions were taking place. Karmanos and DMC, Karmanos Over the past week, Parisi said must stop treating noncancer pa- she has been talking with other tients like those with sickle cell at hospitals about forming a joint Commercial Banking Team its hospital, which is on the DMC venture for inpatient and outpa- campus. tient sickle-cell services. From left to right: Imad Abdulahad, Ingrid Hamilton, Gregory Wernette, In early February, inpatient “It is important for comprehen- Kyle Boehlke, Eva Scurlock, Patrick Fehring, Violet Gintsis care for sickle-cell patients was sive care that inpatient and outpa- transferred to DMC Harper Universi- tient care remain together,” she ty Hospital, she said. Level One is a locally owned bank that was established by the vision of a group of highly successful said. Sickle cell is a chronic blood dis- bankers and business leaders. Experience a full service bank that knows and understands The Karmanos clinic handles ease in which red blood cells be- about 203 adult patients per your needs. We bring the bank to you with our personal service and the cutting edge come rigid and are not able to technology that makes your transactions easy and convenient. Come and see the difference. move normally through blood ves- month. It is staffed by WSU faculty physicians, primarily hematolo- sels, depriving tissues of oxygen. Patrick Fehring, President and CEO Gregory Wernette, EVP Commercial Banking gist oncologists, she said. The incurable disease, which af- 248 737-6902 248 737-7159 fects blacks more frequently, can If WSU had to fund its own sick- be painful and often results in hos- le-cell outpatient program, Parisi pitalization. said, it could cost $1 million a year 30201 Orchard Lake Road, Farmington Hills, MI 48334 “If you break it down to inpa- to rent space and hire staff. 248-737-0300 888-880-5663 levelonebanking.com tient and outpatient, when a sick- Jay Greene: (313) 446-0325, le-cell patient is hospitalized, that [email protected]

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Although we prefer the term “active involvement,” our professionals at UHY Advisors will be the first ones to admit: we are obsessed. Obsessed with monitoring our clients’ industries and helping them solve tough tax challenges. At UHY Advisors, you’ll find seasoned tax advice, industry specialization, global resources, and attentive service—all from people you’ll truly enjoy working with. It’s part of a business philosophy we call “The Next Level of Service,” a commitment that for us borders on obsession—or should we say— THE NEXT LEVEL OF SERVICE. active involvement. For more information, visit uhy-us.com or call one of our offices. Southfield: (248) 355-1040 Sterling Heights: (586) 254-1040 DETROIT BUSINESS MAIN 03-10-08 A 20 CDB 3/7/2008 10:32 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS March 10, 2008 BUSINESS DIARY CONTRACTS by President Kaci Sicheneder. The firm offers advice on areas such as re- Hi-Vol Products, Livonia, has been tirement, estate planning, business awarded production contracts for sev- succession, insurance, education, 1031 eral components that will be utilized exchange, and socially responsible in- on a next generation gasoline direct- vesting. Telephone: (734) 474-2677. injection engine for a major North PARTY PLATTERS American automotive manufacturer. Blazin Bob’s BBQ restaurant serves Hi-Vol Products will be an indirect, barbequed backyard-style ribs in tiered supplier to the engines through downtown Mt. Clemens. Owner Rob one of its existing customers. Ruthenberg took two years to perfect his secret rib sauce. Blazin Bob’s also Fresh Fuel, a Farmington Hills mar- EXECUTIVE BOX LUNCHES serves kabobs, sandwiches, sausages, keting think tank, has been hired by Chicago-style hotdogs and daily spe- Art Moran Buick, Pontiac, and Happy’s cials. Telephone: (586) 610-4523. Pizza, Southfield. Marla’s Mobile Miracles provides ser- Plante & Moran P.L.L.C., a Southfield vices for Oakland County seniors, the accounting and management consult- homebound, caregivers, post-op pa- ing firm, and Plexus Systems Inc., an tients, busy professionals, new moms Auburn Hills software firm, an- and moms-to-be with professional ser- nounced a consulting services agree- vices including hair care, manicures DELIVERED ment. and massages. Telephone: (248) 303- 1228. E-mail: marlasmobile@ EXPANSIONS yahoo.com. Jackson Lewis L.L.P., a nationwide la- YOUR CATERING SOLUTION bor and employment law firm, has OTHER opened an office at 2000 Town Center, Botsford Hospital, Farmington Hills, Suite 1900 in Southfield. It is the firm’s has received full accreditation for 34th office in the United States. Web three years from the Healthcare Facil- site: www.jacksonlewis.com. ities Accreditation Program of the The Learning Experience of Northville American Osteopathic Association. Child Development Center is opening New Horizons Rehabilitation Services in the Ridgewood Plaza at Six Mile and Inc., Auburn Hills, has received a Ridge roads. The Parsippany, N.J.- three-year accreditation from the based company provides child care Commission on Accreditation on Re- and pre-school education for children habilitation Facilities. New Horizons from six weeks to 5 years old. Katie was accredited in the areas of employ- Schulz is the local business-owner. ment services programs; community Telephone: (888) 865-7775. Web site: employment services, job develop- www.thelearningexperience.com. ment, supports and training, employment planning services, employment NAME CHANGES services coordination, employment FEV Engine Technology Inc., Auburn transition services, and organization- Hills, to FEV Inc., as a result of the con- al employment services. solidation of FEV Engine Technology Weichert, Realtors-Excel, 47699 Van JIMMYJOHNS.COM Inc. and FEV Test Systems Inc. Dyke Ave., Shelby Township, is the new name of the former real estate agency of Dave Elya and Hank ©2004 JIMMY JOHN’S FRANCHISE, LLC NEW SERVICES Mendez. It is now an independently The Troy Chamber of Commerce is owned and operated franchise with now offering its members CAREex- Weichert Real Estate Affiliates of Mor- press health care membership pro- ris Plains, N.J. Elya is the agency’s grams from National Health Partners broker, and Mendez is co-owner. The Inc., a health care savings organiza- office is home to 26 agents. Telephone: tion based in Horsham, Pa. (586) 286-3283. Premier Imaging Center P.L.C., Bing- ham Farms, now offers preventive imaging, whole-body CT scans, carotid stroke screening, and laser DIARY GUIDELINES vein treatment. Telephone: (248) 594- 3201. Send news releases for Business Diary to Joanne Scharich, Crain’s Detroit Business, 1155 Gratiot STARTUPS Ave., Detroit, MI 48207-2997 or Elliott & Co. Luxury Real Estate Auc- send e-mail to jscharich@crain. tions, Troy, will initially focus on com. Use any Business Diary item Michigan’s premiere communities. as a model for your release, and Founder and real estate attorney look for the appropriate category. Mark Elliot was formerly Michigan Without complete information, your director of Pamela Rose Auctions. item will not run. Photos are Velocity Investment Partners L.L.C., 22 welcome, but we cannot guarantee E. Cross St., Ypsilanti, is an indepen- they will be used. dent financial planning firm opened DETROIT BUSINESS MAIN 03-10-08 A 21 CDB 3/7/2008 10:16 AM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 21 CALENDAR WEDNESDAY State of Macomb County Address. 11:30 Hill P.L.C. St. John Conference Cen- Finding Economic Opportunity in the COMING EVENTS a.m. March 18. Chamber Alliance of ter, Plymouth. $25. Contact: (734) 762- Emerging Alternative Energy Sector.7 The Fuel of Growth-Facing Tomorrow’s Macomb County and Citizens First 7260. p.m. March 19. The McManus Distin- MARCH 12 Challenges Today. 11:30 a.m.-1:30 p.m. Bank. Macomb County Board of Com- guished Business Lecture Series at ADvance: The Club Study Program. March 18. Detroit Economic Club. missioners Chairman William Crouch- Madonna University. James Croce, Sharon Allen, chairman, Deloitte & 2008 Michigan Operations Breakfast: 6:30-8 p.m. Today-May 21. The Adcraft man. Banquet and Events Center at Green, Clean and Lean Operating Into CEO, NextEnergy Center. Madonna Club of Detroit. An 11-session weekly Touche USA L.L.P. Hyatt Regency MacRay Harbor, Harrison Township. the Future. 7:30-10:30 a.m. March 19. University, Kresge Hall, Livonia. education program about different as- Dearborn. $40 members, $50 guests of $25 members, $40 others in advance. $30 International Council of Shopping Free. Contact: (734) 432-5354. pects of the advertising business, members, $75 others. Contact: (313) 963- members, $45 oth- Centers. Townsend Hotel, Birming- taught at different locations. Target- 8547. ers at the door. ham. $30 members, $40 others in ad- ing professionals already in the adver- Contact: (586) 493- vance. $45 members, $55 others on- Building a Green City: Sustainable Ur- tising business with five years of expe- 7600. site. Contact: (646) 726-3691. banism in Detroit. 5 p.m. March 19. rience or less. Various locations, Lean Principles at Ideal Contracting. Model D, the Detroit Yacht Club, and Detroit area. $200 members, $300 oth- 5:30-8:30 p.m. March 18. Society of Man- the Michigan State Housing Develop- ers. Contact: (313) 872-7850. ufacturing Engineers Chapter One, the Women Lawyers “Leaders on Leadership” Lunch and ment Authority. Architect Mark Nick- Engineering Society of Detroit, Ma- Association of Learn Series. Noon-1:15 p.m. March 19. comb Community College, and SME Michigan Founda- Michigan First Credit Union, Wayne tia of the Detroit firm Archive DS and “Leaders on Leadership” Lunch and Robin Boyle, chair of the geography Noon-1:15 p.m. Michigan Student Chapter S071. Greg Sorrentino, tion 2008 Awards State University, Detroit Public Televi- Learn Series. and urban planning department at First Credit Union, Wayne State Uni- vice president and general manager, Reception. 5:30- sion, and the Southfield Public Library. Wayne State University. Detroit versity, Detroit Public Television, and Ideal Contracting. Macomb Communi- 7:30 p.m. March James Hackett, president and CEO of the Southfield Public Library. Antoni ty College, Building S, Warren. Free. 18. Denise Ilitch, Steelcase Inc. Southfield Public Li- Yacht Club, Belle Isle. Free. Contact: Cimolino, general director of Stratford Contact: Dan Acciacca, (586) 709-1537. Ilitch of counsel, Clark brary. Free. Contact: www.sfldlib.org. www.modeldmedia.com. Festival of Canada. Southfield Public Library. Free. Contact: www.sfldlib. org.

Gleaners Community Food Bank of Southeastern Michigan’s 15th Annual Women’s Power Breakfast. 7:30-9:30 a.m. Vicki Escarra, president and CEO of America’s Second Harvest. Detroit Institute of Arts. $100 to $1,000. Con- tact: Marcy Hayes, (248) 557-2510.

A Taste of Leadership Oakland. 4:30- 6:30 p.m. An opportunity to meet Lead- ership Oakland participants and businesses that have been involved in the Leadership Oakland Cornerstone Pro- gram. Oakland County Executive L. Brooks Patterson and Chuck Stokes from WXYZ-TV Channel 7. Townsend Hotel, Birmingham. $23. Contact: (248) 952-6880.

THURSDAY MARCH 13 Sleep Better-Improve Your Looks, Work & Life. 4-6:30 p.m. Inforum and the Community House. Barbara Fisher, neuropsychologist and founder and managing director of United Psychological Services. Com- munity House, Birmingham. $22. Con- tact: (877) 633-3500.

Crain’s M&A Awards. 5-9 p.m. Crain’s Detroit Business and the Association for Corporate Growth-Detroit chapter. Troy Marriott. $70 members, $40 students, $85 others. Group rates available. Contact: (313) 446-0300.

National Association of Women Busi- ness Owners Greater Detroit Chapter Top 10 Michigan Business Women Awards Luncheon. 10 a.m.-2 p.m. 14th annual awards luncheon at noon is preceded by Business-to-Business Showcase at 10 a.m. and reception with award recipients at 11 a.m. www. nawbogdc.org, Detroit Yacht Club, Belle Isle. $50 members, $60 others. Contact: Amy Marshall, (313) 961-4748.

MONDAY MARCH 17 Downtown Detroit Partnership Annual Meeting & Luncheon. Noon-1:45 p.m. Downtown Detroit Partnership and Crain’s Detroit Business. Detroit Mar- riott at the Renaissance Center. $65. Ta- bles of 10, $650. Contact: (313) 566-8250. Is running your business getting in the way of running your business? CALENDAR GUIDELINES More Calendar items can be found Get back to business. on the Web at www.crainsdetroit. com. Please send news releases for Calendar to Joanne Scharich, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997, or e-mail jscharich@ You can buy QuickBooks at: QuickBooks.com crain.com. You also may submit Calendar items in the Calendar section of crainsdetroit.com. Page 22 CRAIN’S DETROIT BUSINESS March 10, 2008

Confidential Reply Boxes Available Call Us For Personalized Service: See Crainsdetroit.com/Classifieds (313) 446-6068 CRAIN’S CLASSIFIED for more classified advertisements See our Classified ads on www.crainsdetroit.com FAX: (313) 446-1757 MAIL: Classified Advertising, Crain’s Detroit Business, CLOSING TIMES: Monday 3 p.m., PAYMENT: All classified ads must be prepaid. E-MAIL: [email protected] 1155 Gratiot Ave., Detroit, MI 48207-2997. one week prior to publication date. Checks, money order or Crain’s credit approval INTERNET: www.crainsdetroit.com/classifieds Include name, company, address and phone number. Please call us for holiday closing times. accepted. Credit cards accepted.

ANNOUNCEMENTS & FINANCIAL SERVICES SERVICES LOW COST COMMERCIAL LOANS Commercial Loans or Lines of Credit, 1st or 2nd Lien Position, No Environmental Study or Appraisal Fee. ADVERTISING SERVICES Stated Income. Contact Mr. Heyman at CRAIN’SEXECUTIVE RECRUITER [email protected] or (248)229-9672 MISCELLANEOUS FINANCE LEGAL LEGAL 3 MONTH LOANS ON WORTHWHILE JEWELRY Jason Silver INVESTMENT PROFESSIONAL General Counsel Lew Silver Diamond Brokers ATTORNEY POSITION 9 Mile at Greenfield Michigan based boutique investment coun- Small MI based commercial construction seling firm seeking experienced invest- company w/business interests in 26 states Attorney wanted for small Ann Arbor, Mich- 248-559-5323 igan firm specializing in commercial trans- ment professional possessing a strong em- East of the Mississippi is looking for an actions and litigation. Ideal candidate will phasis on business development and port- in-house attorney to handle contracts, TRAVEL SERVICES subcontracts & claim resolution. Must be have three or more years experience in folio management. This career opportunity able to practice in MI and FL & have 5 transactions with some experience in TURN YOUR FREQUENT FLYER MILES INTO CASH offers a competitive compensation pack- yrs. exp. in a supervisory/management ca - commercial litigation and commercial Buying All Airline Miles/Awards/Vouchers. age, with attractive incentives together with pacity, commercial negotiations, contracts transactions primarily aviation related. American Express and all credit card points, a unique opportunity for professional and & litigation. Send resumes and salary his - Experience in the aviation industry and/or Starwood and hotel points. - Local 800-266-7290 financial growth. Send resumes to: tory to: [email protected]. international law a plus; Competitive sal- Box# 10049 CD Crain Communication ary and benefits package. Please submit VIDEOCONFERENCE SERVICES 1155 Gratiot Avenue Detroit, MI 48207 resume to: Crain’s Classifieds Gets Results Box#10048 CDB Complete Videoconference Services 1155 Gratiot Avenue Job Interviews, Legal Depositions, Business Meetings Detroit, MI 48207 Convenient Troy Location, 3 Rooms, 1-200 Capacity GENERAL CONSTRUCTION Midwest Video 248-583-3632 www.midwestvideo.com FLSA: Exempt SALES Construction Administrator BUSINESS & Dates: September 1, 2008 - April 31, 2009 Florida - Michigan INVESTMENTS Salary Range: $55,000.00 - $60,000.00 per year Experience with all phases of commercial build-outs, The University of Michigan-Dearborn (UM-D) is one of the three campuses of the Universi- ROCK YOUR remodeling and alterations. Estimating, cost controls, BUSINESSES FOR SALE contracts, customer contact. ty of Michigan. UM-D, a comprehensive university offering high quality undergraduate, Part Time, Full Time or Per Diem 1144 ACRES 4 SEASON RESORT & HUNTING graduate, professional and continuing education to residents of southeastern Michigan, and CAREER. Phone: 239.292.2771 RANCH. Near Gladwin, MI. Riverfront location attracts more than 8,500 students. The campus is strategically located on 200 suburban acres Email: [email protected] w/restaurant, motel, banquet, trophy whitetail hunting. of the original Henry Ford Estate in the Greater Detroit Metropolitan region. Turnkey sale. Call Pat @ MI Outdoor 616-862-4838. Represent a Leader in Group Life Sales! The School of Management is seeking applications for a Lecturer III. This position would be Detroit-Area Territory CONSULTANTS FRANCHISE OPPORTUNITIES responsible for teaching students enrolled in introductory courses in Organization Behavior and Human Resource Management during the Fall 2008 and Winter 2009 terms. For more than 130 years, Prudential has been a TWO MEN AND A TRUCK respected leader in insurance and financial Expansion/ Turnaround Consultant Minimum requirements: A master’s degree in business, or an appropriate organizational sci- services.With a history of excellence behind us,and Franchise Available Free Evaluation, expert debt negotiator, staff ences discipline, such as Psychology or Sociology. Candidates with higher degrees and a focus on shaping the future of our industry,this is evaluation/training. Solutions Management Inc. • Metro Detroit & Surrounding Communities teaching experience are preferred. where you can Rock Your Career and enjoy great 586-770-8455 or [email protected] • Turn key operation • Great support Staff potential for growth and rewards! • Terrific opportunity To apply, please send an application letter explaining your qualifications and your teaching Group Life Sales Professional EVENT TICKETS Call Peter experience to Andrew Urbaczewski, Chair, Department of Management Studies, School of 313-724-6683 Management, 19000 Hubbard Drive, Dearborn, Michigan 48126-2638. Our territory in Detroit is yours to grow through or [email protected] your dedicated attention to developing broker PRIME TICKET SERVICE - The terms and conditions of employment for this position are subject to the provision of a relationships with clients of less than 1000 lives. Tigers all locations. You’ll use your consultative sales ability to generate All Events Buy / Sell Collective Bargaining Agreement between the University of Michigan and the Lecturers Em- new business and increase activity from existing www.primeseat.com 248-865-6000 EQUIPMENT & ployee Organization (LEO). clients.Along with a genuinely caring approach to your clients’ needs, you will need at least one year MERCHANDISE Currently this classification is considered exempt in compliance with the Fair Labor Stand- of related sales experience; state group life and FINANCIAL SERVICES ards Act (FLSA). health insurance licensure; and thorough OFFICE FURNITURE knowledge of group insurance and intermediaries. The University of Michigan - Dearborn is dedicated to the goal of building a culturally di- CAPITAL AVAILABLE A Bachelor’s degree/equivalent,leadership abilities, MUST SELL, OFFICE CLOSED verse and pluralistic faculty committed to teaching and working in a multi-cultural environ- and excellent communication/negotiation skills are If you have an opportunity that requires Desks $99, Chairs $39, Files $49, Partitions $50, ment and strongly encourages applications from minorities and women. required. funding but does not fit traditional bank- Lateral Files $99, Cubicles, Office Phone Systems If you’re a team player and ready to put your proven Call (248) 548-6404 or (248) 474-3375. The University of Michigan - Dearborn is a non-discriminatory, ing parameters - contact us. We do not Equal Opportunity / Affirmative Action employer. sales talent to work where it will be valued and fund normal start-ups or rewarded, join us! We offer attractive senior/mezzanine debt. Investment size TELECOMMUNICATIONS compensation, generous performance incentives, ranges from $500k to $20 million. Total and comprehensive benefits including health care MANAGEMENT coverage from day one, matching 401(k), tuition committed capital of $100 million. We LUCENT . . . AVAYA. . . PARTNER. . . reimbursement and much more! have an in-house legal team, can think MAGIX. . . VOIP. . .LEGEND . . . "outside of the box" and act quickly. MERLIN. . .SPIRIT Systems/Parts New/refurbished. Don’t miss this opportunity! Submit your resume Omnicall Equipment Corp. (248) 848-9282 Corporate Director, Contract & Physician Services online at jobs.prudential.com and please refer to Please refer to Etccapital.com or contact Job ID 3451. WE HAVE USED PHONES This could be the job you really love! ETC Capital, LLC, 46570 Humboldt Nortel, Lucent, phone systems. Almost any new or Our ideal candidate will be responsible for overseeing HOM’s contract activities for facilities Drive, Novi, MI 48377. used phone available. Expert installation available. Call (248)548-6404 and providers with which HOM conducts business. Secondly, this role is responsible for the system-wide Medical Affairs plan for HOM. These responsibilities assist the organization in Prudential is an Equal Opportunity/Affirmative Action Employer and identifying high-leverage opportunities for break-through improvement that will strengthen is committed to diversity in its workforce.Applicants will be required contract and physician services at all HOM teams and business units. The position functions to submit to and pass thorough background and credit checks. as a convener, facilitator, collaborator and coach to apply all the talents and resources available to HOM to develop and drive a culture of service excellence, business savyness and CRAIN’S REAL ESTATE regulatory compliance into the delivery of end-of-life care. PUBLISHING Qualified applicants must possess at least five (5) years of experience in health care management with demonstrated skills in negotiations, financial management, physician relations, compliance, process improvement and team leadership. A Bachelor’s degree in a health re- AUCTIONS COMMERCIAL PROPERTIES lated field is required; Master’s degree preferred. Reporter Hospice of Michigan offers an excellent benefits package and competitive salaries. Please Crain’s Detroit Business has an Commercial Real Estate Real Estate Advisors - Call us forward a resume and cover letter, including salary expectations, to the following address: Auction: Tues, Mar 25, 11am immediate opening for a Planning to Human Resources REPORTER to cover automotive 2345 Jarco Dr, Holt, MI Buy • Sell • Lease 400 Mack Ave. suppliers and another beat to be f Detroit, MI 48201 determined. Job requirements 20,063± sf Warehouse We’re linked to multiple Commercial Networks and we create results for you Fax (313) 578-6390 include: Reporting experience in “Incredible deals are being Negotiated” [email protected] print and/or Web, and the ability to 2IÀFH)DFLOLW\ www.hom.org Call us Now! think and write fast. To apply for 17,119± sf warehouse, climate Equal Opportunity Employer Custom Office Suites this position please visit our website controlled, 20+ ft ceiling height. from 200 to 2,500 sq. ft. at www.crain.com and search under VIRIÀFHV. Shared Reception the employment section. We thank 1,800± sf detached shed. Conference Room you for your interest in Crain Kitchen Open House Dates: Broadband Internet Communications and invite you to Wednesday, March 12 6-7pm visit our website as positions are Thursday, March 20, 1-2pm NOW LEASING updated regularly. 34935 Schoolcraft, Livonia Crain Communications is an Equal Opportunity Employer. Erwin Tonch, CCIM TONCH Properties (517) 676-9800 CRAIN’S EXECUTIVE sheridanauctionservice.com www.tonch.com (734) 522-1200 RECRUITER WORKS! March 10, 2008 CRAIN’S DETROIT BUSINESS Page 23

See Call Us For Crainsdetroit.com/realestate Personalized Service: for more real estate (313) 446-6068 advertisements CRAIN’S REAL ESTATE

AUCTIONS COMMERCIAL PROPERTIES VACANT LAND WAREHOUSE STORAGE SPACE RESTAURANT FOR LEASE OKEMOS, MICH “A Steal" at $550,000 Heated Storage For Big Boy Toys Former restaurant Villegas, 4,031 sq. ft., partially Approx. 37 acres, Howell Twp., less then 3 miles to equipped incl. hoods, Class C license available. Call downtown Howell, water & sewer, approved PUD for Motor Homes, Classic Cars,Industrial Equip., Tom LeBlanc, DTN Mgmt. 517-371-5300 96 single family building sites, house on property, Individual Units 700-5000 sq.ft, Oversize Public Auction DOWNTOWN FERNDALE MULTI-USE BUILDING gently rolling, some large evergreen trees. Doors. Located on Van Dyke Fwy Near For sale or lease. 4,950 sq. ft. Office/Warehouse, Lakeside Realty - 248-684-5830 31 Mile Rd In Washington Twp. Historic 1886 Mansion - 2931 E Jefferson Ave. Retail or Restaurant. Loading dock, private parking. Call 248-388-3333 Call 1-586-336-9999 Auction on-site Saturday April 5th at 2pm SHOPPING CENTER & OFFICE BLDG. FOR SALE Crain’s Classifieds Gets Results Turnkey Storage Preview & Registration at Noon Everett Plaza, Lansing, MI, 62,000 sq. ft. total, good location, tenant base and income. Call Tom LeBlanc. Zoned B-4 DTN Mgmt Co. 517-371-5300 Best for Business and INDUSTRIAL PROPERTY Commercial Use! CRAIN’S RESIDENTIAL PROPERTIES

South Genesee’s Premier Warehouse AUCTIONS AUCTIONS WE ARE PROUD TO OFFER AT AUCTION 45,000 sq. ft. 83,700 sq. ft. An opportunity to own the Historic Jefferson March 13th, 2:30p.m. ONLINE REAL Mansion located in the general business With Rail With 4 Docks Preview 1:00p.m. Beth Rose district. Two completely renovated buildings ESTATE AUCTIONS Auctioneer, CAI & parking lot for private parking available in Quality Tenants this public auction. Over 18,000 Sq. Ft. Class Exceptional Value 335 Properties A office space with original flooring, stained Lora Koralewski glass & historical design. This is a must see 29 States Auction Coordinator property. Included is a 4500 Sq. Ft. Carriage 1371 Kirkway Bloomfield Hills, MI 48302 house. Two story building with a reception Catellus Group, LLC 810-695-7700 March 14th - 21st Rose Auction Group, LLC MAGNIFICENT BLOOMFIELD HILLS LAKEFRONT, MID area, training area & office space. Also CENTURY MODERN, WALK-OUT RANCH. bethroseauction.com included is a private parking lot. $1.5 million FREE BIDDING 877-696-7653 in restorations in 2000 to both buildings. AVAILABLE NOW Features include: Over 360 feet of lake frontage and approx 9,000 square feet of exquisite living williamsauction.com 4,000 to 100,000 sq. ft. space. This is an incredible property and buying Also 10,000 & 25,000 sq. ft. opportunity! 800.801.8003 Absolute Commercial Land Auction Free Standing Bldgs w/truckwells. Zoned M-2 Commercial 13650 E 10 Mile Rd., Warren, MI 1 Mile from Metro Airport Tues March 18th at 4pm REA CONSTRUCTION WATERFRONT PROPERTY H Registration at 3pm E 10 Mile Rd. (734) 946-8730 Auction held at: Holiday Inn Also Heavy Industrial Mark R. Elliott, J.D. A Great Reason to Live in Michigan! 3.66+/-3.66+/- 248-643-4300 President Come home to your new custom home (your plans or AcresAcres 30000 Van Dyke Ave. in Warren Land Available ours). Enjoy water sports and stunning sunsets. www.elliottandcompanyauctions.com In Brighton at HiltonPointeEstates.com Rose Auction Group, LLC www.reaconstruction.net Beth Rose 877-696-7653 CAI Auctioneer bethroseauction.com Endless possibilities! 3.66 +/- acres of vacant land with 585 feet of frontage. The district is AUCTIONS classified as medium/light industrial & allows a legal use of this property for, but not limited FOR LEASE to, any commercial retail, medical office, assisted living and much more. A New Walgreen’s DETROIT, MICHIGAN Store is adjacent to the property & the Henry Ford Health System Bi-County Hospital is located at the same intersection. Property includes gas, electric, city water & sewer hook ups. Access to railroad opportunities. Sells to the highest bidder! 72,000 sq. ft. Warehouse, 6 Truck Docks Bank Orders Howard St. & Lodge 313-506-0534 END THE FRUSTRATION! Tired of showings, open houses, offers falling through? INVESTMENT PROPERTY AUCTION AIRPARK-LINDEN, MI Armada Township, Bruce Township, Metamora, Hartland, Sell in One Day the Development Opportunities/Partnership, Commerical & Residential, Call 248-921-6600 Lapeer, Northville, St. Clair, Washington Township Rose Auction Way! www.horizonlakes.com Call today to learn more about the Auction Advantage! OFFICE BUILDING New Homes and Condos! Northpointe Office Building Rose Auction Group, LLC 2525 Telegraph, Bloomfield Hills, Mi Originally priced from $175,000 – $2.5 Million! 877-696-7653 Beth Rose Visit us online at bethroseauction.com Auctioneer, CAI Suggested opening bids from $50,000 – $1,000,000! Lease-Investment Opportunity Public Auction General or Medical Offices 18597 Steep Hollow Ct, Northville, MI Historic 1891 Six Story Building - 1500 Woodward Ave. Detroit Outstanding Visibility-Great Corporate Image Auction on-site Saturday April 5th at 11am Costco 7 Subdivisions Preview & Registration at 9am ep

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Northpointe FrnliRdakn John Poponea & Associates, Inc SATURDAY APRIL 19, 2008 Zoned B-2H 248-706-1300248-706-1300 Fax: 706-1395 Don’t miss the chance to own this 1891 OFFICE SPACE 800.747.3342 X806 Historic Six Story Building. The Wright UNIQUE OFFICE SPACE Historic Wright Kay Building Historic Wright K Building, zoned B-2H is located two 3 furnished offices in historic building circa 1880. www.nrc.com/806 blocks from Comerica Park and Ford Near Ren Cen, Reasonable rates. For more info, Field. People mover station and public go to: www.kiyaimages.com/paulhughes In cooperation with Michigan Real Estate Services parking are within walking distance. or call Paul M. Hughes (313) 567-1650 Beth Rose 3719 Westnedge Ave, Kalamazoo, MI Broker’s Lic.#6505265388 Main floor nightclub Mezzanine and Milford Village Office Space Available Auctioneer, CAI three bar areas, includes a class C liquor New Construction, move in immediately, excellent license. Third Floor is a remodeled parking, build out included, walking distance to shops Lora Koralewski office with storage. Fourth and Fifth and restaurants. Suites from 400 sf to 9000 sf Auction Coordinator floors are two bedroom lofts and the 248-343-6487 sixth floor is a three bedroom Loft. This Bloomfield Hills "A" Office -- Window office(s) CRAIN’S EXECUTIVE RECRUITER WORKS! Rose Auction Group, LLC is a must see property with great income available in existing law firm suite; optional secretarial To Place Your Ad Call bethroseauction.com potential in the very epi- center of station; includes library/conference room and kitchen; 877-696-7653 optional use of internet, fax, copier and scanner - (313) 446-6068 or Fax (313) 446-1757 Downtown Detroit. 248-645-1450 DETROIT BUSINESS MAIN 03-10-08 A 24 CDB 3/7/2008 11:18 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS March 10, 2008 Court backs rules Are you paying too much in real property taxes? BRIEFLY Justice department official to its own Training and Simula- on discretionary tion Division. The value of commercial real estate in Michigan has declined, yet to teach at Cooley Law Arotech (NasdaqGM: ARTX) an- assessed values may not reflect this reality. Whether you are the clauses in policies Alan Gershel, criminal division nounced the acquisition in mid- owner of commercial property or a tenant responsible for paying February. The purchase price in- chief of the U.S. attorney’s office BY JAY GREENE taxes, ELLIAS & ELIAS, P.C. can help. cludes a payout of $1.25 million in in Detroit for nearly 20 years, re- CRAIN’S DETROIT BUSINESS cash and $100,000 in stock. tires in May and will join the RTI President Richard Romano The U.S. District Court in West ELLIAS & ELIAS, P.C. has a staff of experienced real estate attorneys Thomas M. Cooley Law School facul- will continue to manage the com- Michigan on Feb. 29 upheld rules with a track record of reducing their clients' property taxes. You will not ty as a visiting professor. pany as a subsidiary of Arotech’s implemented in 2007 by the state Gershel will teach criminal law be charged fees unless your taxes are low- First Ann Arbor Corp., or FAAC Inc. Office of Financial and Insurance Ser- ered. You are responsible only for filing fees, and criminal procedure at the Founded in 1998, RTI now has vices that prevent insurance com- appraisal costs and other direct expenses. school’s new Auburn Hills campus. satellite offices in Colorado and panies from issuing policies that Hourly fee arrangements are available as well. During his nearly 30 years with Utah and reported 2007 revenue of contain discretionary clauses. the U.S. attorney’s office, Gershel $1.6 million. It is the producer of Under the clauses, insurance So, if your 2008 tax assessment is too high, Ellias & Elias, P.C. served two terms as the interim SimCreator — a digital simulation companies could disqualify a U.S. attorney and as a deputy as- call Jane Elias at 248-865-8400 to discuss Attorneys and and modeling system — and is not policyholder’s benefit claim. whether a property tax appeal is right for Counselors at Law sistant attorney general in the to be confused with RTT USA Inc., “The court’s ruling represents you. You can also go to our website at 5777 West Maple Road criminal division of the U.S. De- which also makes 3-D computer vi- a big win for Michigan con- www.E3PC.net for faster service. Suite 120 partment of Justice. sualizations and simulations and sumers,” said OFIS Commission- West Bloomfield, MI 48322 — Chad Halcom is also in Royal Oak, as the local of- er Ken Ross in a March 5 state- 248.865.8400 fice of a Munich-based company. ment. “This decision prevents www.E3PC.net Arotech Corp. buys Realtime Arotech is a defense contractor insurance companies from slip- with products in the military, law- ping clauses into their policies Technologies Inc. for $1.35M enforcement and homeland-secu- that unfairly disadvantage rity markets. Besides simulators, Michigan consumers.” Ann Arbor-based Arotech Corp. it also makes zinc-air and lithium After the rules went into effect www.E3PC.net has acquired Realtime Technologies batteries and chargers, and light- last June, several insurance Inc. in Royal Oak for $1.35 million weight-vehicle armoring. groups sued to overturn them. and will add the simulation and — Chad Halcom The were the Life Insurance Asso- digital animation software maker ciation of Michigan in Lansing, and the American Council of Life In- Citizens Republic cuts dividend surers and America’s Health Insur- Flint-based Citizens Republic ance Plans, both in Washington, Bancorp (Nasdaq: CRBC) an- D.C. nounced Feb. 22 that its board of Last year, consumers filed nu- directors had approved a reduc- merous complaints about the tion in the quarterly stock divi- clauses, said Dorothy Cherry, an dend of 52 percent, from 29 cents OFIS attorney. Reasons for a pol- to 14 cents. The most recent divi- icy denial included that proce- dend was paid on Feb. 14. dures were not medically neces- — Tom Henderson sary, even though physicians had approved them, she said. “In some disability income Miller Canfield signs Troy lease policies, we had some examples Miller Canfield Paddock and where (insurers) determined a Stone P.L.C. has signed a 41,000- person was not disabled when square-foot lease at 840 Long doctors said they were,” Cherry Lake Road in Troy. The law firm said. expanded its existing space by Cherry said more than 80 life 11,000 square feet. Steve Morris, and health insurance companies managing partner with Farming- have not complied with the rule ton Hills-based Newmark Knight change; however, more than 45 Frank, represented the law firm companies have, she said. and building-owner Kojaian Man- “This ruling will significantly agement represented itself. help us with enforcement to go — Daniel Duggan after these 80 companies that did not comply,” Cherry said. Jay Greene: (313) 446-0325; Business and Professional [email protected] Retro elegance. Neo decadence. Association honors 8 women The Michigan Business and Pro- Four hundred customized rooms and suites with plasma televisions, fessional Association honored eight women Thursday at the CRAIN’S SEEKS iPod¨ docking stations, luxury bedding and linens, soaking tubs and 12th-annual Women and Leader- over-sized showers. A panoramic view from Iridescence, DetroitÕs only ship in the Workplace Symposium DIVERSITY CASE STUDIES AAA 4-Diamond restaurant, the regal atmosphere of our brand new and Awards Luncheon in Livonia. We’d like to know about local They were: companies Poker Room, 2,500 of the hottest slots and the excitement of the most Business: Francine Parker, using diversity to incredible casino experience youÕll ever have. president and CEO, Health Al- improve the liance Plan. bottom line. Government: Lisa Webb Sharpe, Crain’s will director, Michigan Department of publish a Management and Budget. special report on diversity April Philanthropic: Danialle Kar- 14, emphasizing manos, founder, Work It Out. how companies Human Services: Dorothy Dere- put ethnic, mo, president and CEO, Hospice generational and Detroit, Michigan ¥ 1.866.STAY.MCC ¥ motorcitycasino.com of Michigan. other categories of diversity to work Professional: Juliette Okotie- for them. If you have a story to Eboh, senior vice president of share, contact Jennette Smith, community affairs and adminis- assistant managing editor/Focus, tration, MGM Grand Detroit Casino. at [email protected] or (313) 446-1622. Media: Mary Kramer, publisher, Crain’s Detroit Business. Crain’s also will co-host with the Michigan Roundtable for Diversity Small Business: Lydia Gutier- and the Detroit Regional Chamber rez, owner, Hacienda Mexican a full-day conference on diversity Foods. June 12 at the MGM Grand Detroit Education: Barbara Mieras, ex- Casino, focused on innovation MotorCity Casino Hotel and MotorCity Casino Hoteldesign If you bet more than you can afford to lose, youÕve got a problem. ecutive vice president of ad- through diversity. Crain’s will post are trademarks of Detroit Entertainment, L.L.C. ©2008 Call 1-800-270-7117 for free, conÞdential help. Detroit Entertainment, L.L.C. All rights reserved. vancement, Davenport University. more information at www.crains — Jonathan Eppley detroit.com soon. DETROIT BUSINESS MAIN 03-10-08 A 25 CDB 3/7/2008 4:10 PM Page 1

Morgan Stanley to acquire Ann Arbor biotech testing osteoporosis drug 60% stake in Learning Care Morgan Stanley Private Equity will BY TOM HENDERSON Long expects the first phase to go place lost bone, and that Velcura’s acquire a 60 percent stake in Novi- CRAIN’S DETROIT BUSINESS STARTUPS WITH well. small molecules show promise of based early education and day Velcura, its name derives from doing both. care provider Learning Care Group Velcura Therapeutics Inc., an Ann PFIZER ROOTS: the Latin term velocitas cura or She said another potential ben- Inc. in a sale expected to close next Arbor-based biotech heavily fund- swift cures, is a spinoff of the Uni- efit of Velcura’s compounds is for month, the companies announced ed by federal and state grants The closing of Pfizer Inc.’s Ann Arbor operations has helped versity of Michigan. It has received side effects to be quickly reversed in a joint statement Wednesday. since it was founded in 2001, has Velcura Therapeutics Inc. In about $15 million in state, federal once the drugs are stopped. Parent company A.B.C. Learning begun clinical trials of a new drug addition to hiring four former Pfizer and private-sector funding, most “The osteoporosis market is Centres in Brisbane, Australia, ex- to fight osteoporosis that it hopes scientists, it has signed contracts recently a $2 million, three-year very large,” said Andrew Klein, a pects to net roughly $700 million in will lead to its first round of ven- with two startups founded by ex- grant in November from the Na- project business manager at cash from the initial transaction ture-capital funding. Pfizer executives or scientists to tional Institute of Standards and NIST. He said the grants require a in late April, with an additional The drug, which goes by the help develop new drugs. Technology. focus on business development as $30 million in deferred compensa- working name of VEL0230, was ■ International Discovery The year Velcura was founded, well as scientific research. tion to follow by June 2009, accord- the subject of a paper in the Feb- Sourcing Consultants L.L.C. of it won $60,000 for finishing first in “There are a lot of therapeutics ing to a news release. Chelsea, founded in February ruary issue of the journal Science. the annual business plan contest out there that are not effectively — Chad Halcom It acts by reducing deficits of an 2007 by Mark Creswell, a former outsourcing program manager and sponsored by Great Lakes Entre- addressing the needs,” Klein said. enzyme called cathepsin K, which associate director at Pfizer, will preneur’s Quest. In 2002, Velcura “Velcura has a pathway to com- helps the body absorb old bone help improve molecules that are got $3.3 million from the Michigan mercialization, a combination of cells as new cells are formed. either owned by Velcura or Life Sciences Corridor. From 2003 to a fairly solid business plan and Phase I studies of the drug, to licensed from its Japanese 2007, it received a total of $3.8 mil- market potential.” test its safety in small groups of partner. lion in various grants from the Na- NIST estimates a potential EARNINGS about 25 individuals, began Feb. Bob Sliskovic, a director at IDSC tional Institutes of Health. worldwide market of at least $60 Affinia Group 27 at the Charles River Laboratories and former senior director of In 2006, it received $2 million in billion by 2020. in Tacoma, inflammatory chemistry at Pfizer, a loan convertible to equity from Long is a former professor in 4th Quarter Dec. 31 2007 2006 Revenue...... $521,000,000 $502,000,000 Wash. will head up those design efforts, the state’s 21st Century Jobs Fund. the Department of Pediatrics at which involve studying a Net income...... $1,000,000 ($9,000,000) Velcura’s 12 months molecule’s design and figuring out In addition, it has received $4 UM, where he filed a patent on founder, Presi- million worth of in-kind contribu- forming bone in tissue culture. He Revenue ...... $2,130,000,000 $2,160,000,000 what tweaks to make in its shape Net income...... $6,000,000 ($5,000,000) dent and CEO to make it more effective or to tions from a strategic partner in licensed four UM patents before Michael Long, reduce side effects. Japan, Nippon Chemipar Co. Ltd. leaving the school in 2003 to run Affinia reports financial results because it has publicly hopes to use re- ■ AApharmaSyn L.L.C., of Ann Velcura licenses three of Nip- the company full time. The com- held debt but does not report earnings per share. sults of the Arbor, founded in 2006 by Pfizer pon’s compounds, including the pany now has 15 patents with study, expected chemists Helen Lee and Xue-min one currently undergoing Phase I three more pending. Rockwell Medical Tech. Nasdaq: RMTI to be finished Cheng, will synthesize the testing. Velcura currently has 10 em- 4th Quarter Dec. 31 2007 2006 in May, to land molecules that IDSC designs. Revenue ...... $11,948,905 $9,228,502 Long Mrunal Chapekar, a technical ployees. Long said he hopes to Net income ...... ($1,162,843) ($1,155,035) $10 million to — Tom Henderson specialist at NIST and project hire a project manager and three Earnings per share ...... ($.09) ($.10) $15 million in equity funding from manager on the Velcura grant, or four scientists this year. 12 months venture capitalists, who are reluc- have products in clinical trials. Revenue ...... $43,045,304 $28,638,859 said most current osteoporosis Tom Henderson: (313) 446-0337, Net income ...... ($3,718,895) ($4,574,979) tant to fund biotechs until they Based on results in animal trials, drugs slow bone loss but don’t re- [email protected] Earnings per share ...... ($.32) ($.41) DETROIT BUSINESS MAIN 03-10-08 A 26 CDB 3/7/2008 2:18 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 10, 2008 Revenue shortfall leads to budget uncertainty

LANSING — Clouds than-anticipated payment equipment purchases will reduce ence in terms of specifically what take from its major taxes. are emerging in Michi- from a 1999 national settle- Michigan business tax revenue and revenue we are going to lose or A clearer picture of how those gan’s revenue picture, Capitol ment with the U.S. tobacco individual income tax revenue. gain and what we will need to do in base revenues will support the sending a cautionary Briefings industry, overestimated Overall, the stimulus package the current year and the upcoming budget will emerge in May, at the message to lawmakers growth in property-tax rev- equates to a $32.5 million revenue year,” Fritz said. revenue-estimating conference. as they craft the state’s enue, potential settlement gain in the current year but a $94.4 Jay Wortley, the agency’s senior In January, collections from ma- upcoming budget. of a Midland property-tax million revenue loss in fiscal 2009, economist, said that for the cur- jor taxes were about $40 million The Senate Fiscal dispute, and the impact of the agency predicts. rent year, the shortfall could be below what the Senate Fiscal Agency said last week the federal stimulus pack- Leslee Fritz, communications di- offset by tapping into a $174 mil- Agency expected, consistent with that a variety of rev- age signed by President rector for the budget office, said it’s lion surplus that was expected to that month’s revenue-estimating enue issues may lead to Bush in February. too early to say what actions may be carry over into fiscal 2009. conference projection. The agency a $134 million shortfall The Senate Fiscal needed. But she said that “all of the Craig Thiel, director of state af- expects February tax collections to in the state’s current- Agency said the income tax issues that they identified as items fairs with the Citizens Research be at or even a little above projec- Amy Lane year budget and a rebates in the stimulus of concern are items that we have Council of Michigan, said that “if tions, Wortley said. $249.6 million shortfall in the gov- package will help boost Michigan been tracking all along.” there is a silver lining,” it’s that Still, as Michigan moves ernor’s proposed budget for fiscal sales tax, casino tax and lottery rev- “We probably won’t know defin- the identified revenue issues are through the fiscal year, there are 2009, which starts Oct. 1. enue, but a business tax reduction itively where we stand until the one-time in nature and not reflec- uncertainties stemming from a na- Areas of concern include a lower- that accelerates the depreciation of May revenue-estimating confer- tive of Michigan’s base revenue in- tional economic slide and the revenue that’s expected from Michi- gan’s new business tax, Thiel said. “Caution’s probably the word as far as revenues go,” he said. “The good news is that we’re being made aware of the stuff with the ’09 short- falls in advance of the Legislature weighing in on the budget.” Film stimulus bills move forward A package of incentives to boost Michigan filmmaking is heading toward rapid action this week. 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All HAP plans offer: • Flexible and comprehensive benefits • Online health tools Association changes its name • Extensive network of the leading • Disease management The Michigan Hotel, Motel & Re- doctors and hospitals • Health education and worksite wellness sort Association has changed its • Preventive care • Plus, emergency coverage wherever you travel name to the Michigan Lodging and Tourism Association. Steve Yencich remains president and CEO of the PPO Lansing-based group. With our PPO, you get the flexibility to seek care from providers within or outside of the preferred network Amy Lane: (517) 371-5355, without referrals.This popular, convenient plan provides freedom of choice, a large network of hospitals and [email protected] physicians, emergency coverage wherever you go and preventive services – all at an affordable price. New Individual Coverage SOLO offers great individual health coverage. It’s perfect for entrepreneurs, college grads, early retirees or those between jobs. Go online and take a look! BANKRUPTCIES The following businesses filed for SM Chapter 7 or 11 protection in U.S. Value Plans Bankruptcy Court in Detroit Feb. 29- Want to save up to 30% off your current health care premiums? Many businesses today are turning to HAP’s Mar. 6. Under Chapter 11, a com- Value PlansSM for the savings. Find out what thousands of people already know about the “value” in these pany files for reorganization. plan designs. Chapter 7 involves total liquida- tion. Detroit Entertainment Network Inc., Medicare Advantage Plans 19358 Livernois Ave., Detroit, volun- HAP’s Medicare Advantage plans offer employers and Medicare-eligible individuals solutions with: tary Chapter 11. Assets and liabilities not available. • Medical and prescription drug coverage at an affordable price GR-94 Inc., 10415 W. Warren Ave., • Preventive care Dearborn, voluntary Chapter 7. As- • Emergency coverage wherever you travel sets and liabilities not available. • Your choice of the leading doctors and hospitals MB Gratiot Inc., 10415 W. Warren Ave., Dearborn, voluntary Chapter 7. As- You’ll enjoy affordability and peace of mind at a time when you need it most. sets and liabilities not available. Lochmoor Club L.L.C., 51410 Milano Drive, Macomb Township, voluntary Chapter 11. Assets and liabilities not available. www.hap.org M. Thomas L.L.C., 32220 Stricker Drive, Warren, voluntary Chapter 7. Assets: $612; liabilities: $135,144.

Alliance Health and Life Insurance Company is a health insurance subsidiary of Health Alliance Plan. PPO is a product of Alliance Health and Life Insurance Company and HAP Preferred, Inc., both are wholly TPS Lawn Service Inc., 850 Pinecrest owned subsidiaries of Health Alliance Plan. Individual health plans (SOLO) are offered through Alliance Health and Life Insurance Company, Inc. Health Alliance Plan and Alliance Health and Life Insurance Drive, Dexter, voluntary Chapter 7. Company each have a Medicare contract with the federal government. Assets: $0; liabilities: $76,849. — Compiled by Jonathan Eppley DETROIT BUSINESS MAIN 03-10-08 A 27 CDB 3/7/2008 4:12 PM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 27 New Roundtable leader wants to take mission statewide

Thomas Costello, 54, is versity and inclusion during will have a Kwanzaa celebration. move up into management. of the things I’ve practiced inside taking the reins of the your tenure at Compuware? The second piece is to connect What led you to the Michigan the workplace. It all fits. Why now? Michigan Roundtable for Di- I think the most impor- the interest of that group to the Roundtable? I’ve always had this I guess that’s all built up in me, versity and Inclusion today, tant thought is that we — business. For instance, the Chi- sense of wanting to serve others. and I’m ready to rock and roll. leaving his position as se- the company — recognize nese group on Saturdays — a num- Over the course of time, I’ve that diversity adds cre- nior vice president of glob- ber of them take their students to aligned myself outside of work in What are your plans for the Michi- ativity and innovation to Chinese school so they continue to organizations that do that. al human resources and a gan Roundtable? To dig in. We want nearly 24-year career at our organization. Be- learn the language and the culture. I’ve been on the board of the cause we have such a di- to see if we can push our mission Compuware Corp. So, Compuware set up a recruiting Michigan Roundtable for about verse work force, we are and vision out statewide. We’ve He replaces Vice Chair- booth at one of these schools. We three years, and I chair the over- better for it. That effort been Detroit- and southeastern man and interim CEO received a number of candidates sight committee for the Loyola (High results in a better bottom coming in, received their résumés Michigan-centric. Bruce Nyberg, who is a re- School) Work Experience Program. line. and ended up hiring some of them. The other program I’ve been in- Now we want to let the rest of tired president of Hunting- The same group did a lunch- volved in for about 10 years … is the state know we’re here as a re- ton Bank-East Michigan. Thomas Costello, Wasn’t Compuware re- hour symposium on doing busi- the Generation of Promise program. source to use … (for) diversity Nyberg had served as in- Michigan cently named one of the Top ness in China. When employees We take approximately 60 high training, (going) into schools and terim CEO since Decem- Roundtable for 50 companies in the U.S. by Diversity and (participate in the groups), they school juniors from throughout spreading cultural, racial, reli- ber, when former CEO DiversityInc. magazine? Inclusion become more engaged in their the metro area from public, pri- gious awareness … and work be- Daniel Krichbaum was Yes, in June 2007. One of jobs, they become more empow- vate and parochial schools. They tween all the different faiths. appointed COO to Gov. the things we started a ered, and they feel the company begin with a weekend retreat and Part of my thought process as Jennifer Granholm. few years ago was employee re- cares for them. It’s (also) a way of meet once a month. … It’s expo- I’ve taken this on is we should look Costello spoke with Crain’s resource groups — some call them developing employees for poten- nential learning about other races, at other communities and look at porter Sherri Begin about the diver- affinity groups. We now have five tial leadership positions. A num- religions and cultures. We’ve had some best practices. sity initiatives he led at Compuware of those: African-American, Chi- ber of the employees who are in students who’ve never been south Corp., their impact on the compa- nese, Indian, Hispanic and a the (groups) know our officers and of Eight Mile … or north of Eight I look at a town like Cincinnati. ny’s bottom line and his plans for women’s association. have a board. Mile. What we’re trying to do is They’ve had their own racial is- the Michigan Roundtable. One of their goals is to educate These folks have shown the abil- connect them. sues. It’s a good idea to look at Compuware employees on the tra- ity to take charge and make deci- This is all what pulls me. … It’s what they’ve done to encourage What would you say your key ac- ditions of their culture. For exam- sions. It’s a good breeding ground what I’ve practiced outside of harmony or eradicate racism. complishments were in the area of di- ple, the African-American (group) for employees who may some day work for the last 10 years and some — Sherri Begin Oakland County hopes auto suppliers can drive medical industry growth

BY CHAD HALCOM Toffolo said crossover applications for manufactur- CRAIN’S DETROIT BUSINESS ers in the medical industry benefit not only the affect- ed companies but can lead to an economic draw for Science offers many tales of serendipitous mo- the whole region. ments. “There is an economic development component to A Cambridge University graduate was sitting un- having things like this,” he said. “If we become more der an apple tree. A doctor in oncology was supposed of a medical destination, in terms of cultivating spe- to give remarks at a Dearborn conference and walked cialties, then we create an attraction to the area. Peo- through the wrong door. ple will come here, and businesses as well, from Oakland County officials are aiming for a few more around the country and around the world.” deliberate breakthroughs in the local medical indus- He also said part of the inspiration for the event is a try by pairing health care companies and medical de- much-told story of Dr. Alvaro Martinez, chairman of vice makers with automotive suppliers at a life sci- the Department of Radiation Oncology at Beaumont ences conference next month. Hospitals, who initiated the research and develop- Deputy County Executive Dennis Toffolo said the ment work on 3-D imaging and linear accelerator Oakland County Department of Economic Develop- emissions to treat forms of cancer. ment and Community Affairs will Martinez was supposed to give remarks at a confer- host the event April 23 and pattern ence on physics and medicine at the Ritz-Carleton ho- it partly after the “Alternative En- tel in Dearborn in the 1990s, but was delayed by traffic ergy Manufacturing 101”’ confer- and walked into the wrong event. ence it co-sponsored last November Martinez found himself watching engineers pore with Detroit-based NextEnergy. over 3-D digital images mapping microfractures in en- “We had people still talking and gine blocks that could potentially become serious setting things up together when it structural flaws. He then saw applications in map- was all over and we were closing ping tumors. up. We had to leave for the day,” he “I had … one of those ‘eureka’ moments then,” he Toffolo said of the past meeting between said. “The principle was there and it was more or less auto suppliers and makers of solar the same, you just had to develop a modification for it and wind energy. “And I’m hoping we get some of that to be utilized on human beings.” same interest and enthusiasm here.” Last September, Beaumont performed its first pro- Toffolo and Steven Ebben, vice president of planning cedure on a patient using the new Omni Beam system and marketing at William Beaumont Hospitals who is also that combines 3-D imaging and a linear accelerator participating in the event, both said medical businesses for targeted emissions to treat tumors. are interested in supplier companies, manufacturers The Omni Beam, he said, is essentially a more ad- and engineers who might have viable technology and vanced and automated version of the previous Syner- products with crossover applications in medicine. gy product that began combining imaging and treat- Ebben plans to make a presentation at the conference ment in 1997, based on research Martinez initiated on behalf of Beaumont’s Technology Usability Center, after the Dearborn conference. which takes the products of other companies that have Maureen Donohue Krauss, deputy director of eco- approval for medical use and tests them for possible nomic development for the county, said another angle risk management or professional training issues. officials hope to explore at the conference is how sup- “It’s a benefit not only for Michigan health care, but pliers and manufacturers might also aid the medical also for economic development, to get involved with industry with their experience in supplies manage- other industries that have technology we can apply,” ment and logistics. he said. “We want to be a player in helping to diversi- “One of the top concerns we hear from department fy the local economy, too.” heads and administrators of hospitals is a need to im- The center began as an experimental program in 2005 prove their logistics, and nobody does logistics like with one client company, and has since grown to test- they (suppliers) do.” ing products from at least a dozen companies, he said. Chad Halcom: (313) 446-6796, [email protected]. DETROIT BUSINESS MAIN 03-10-08 A 28 CDB 3/7/2008 6:29 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS March 10, 2008 Cancer: Treatment center raises debate Some question value of proton- ■ From Page 1 beam therapy for some cancers Coalition, Lansing. come effective. The alliance in a statement agreed Beaumont’s vote against the con- The discussion and subsequent with limiting the number of facilities BY JAY GREENE sortium wasn’t totally unexpected. As vote raise a number of questions: through the proposed CON regula- CRAIN’S DETROIT BUSINESS www.crainsdetroit.com first reported How should new, expensive technolo- tion. The alliance is a Detroit-based last Wednesday, on Feb. 14, two days gy be deployed: one hospital at a time joint labor-management association Proton-beam therapy, a form of megavoltage radiation after the initial work group meeting, or as a shared resource? If a resource that focuses on, among other things, therapy, has been suggested to be effective in some prostate Beaumont filed a letter of intent to ap- is shared, does one partner need to be health care cost containment. and pediatric cancers because it causes less damage to sur- ply for a certificate of need for a $159 the lead? And, finally, does the tech- Beaumont plans a 65,000-square- rounding tissues while directing high dosages at tumors. million proton-beam facility. And on nology deliver the benefits promised foot facility in a joint venture with Dr. Frank Vicini, William Beaumont Hospitals’ medical di- March 3, Beaumont filed for the CON. and are they worth the cost? (See story ProCure Treatment Centers Inc., a rector of oncology services, said there is no debate among Henry Ford Health System and Kar- at right.) Bloomington, Ind.-based company radiation oncologists that proton-beam therapy is superior manos Cancer Institute also have Beaumont’s Matzick said he is open that provides funding to build proton- to photon-based intensity modulated radiation therapy, filed CON applications for the ser- to other hospitals joining the venture. beam facilities. The two-story proton- which is used by Beaumont and Karmanos, among others. vices, but have said they prefer a con- Dr. John Ruckdeschel, Karmanos beam center, which Beaumont will “Proton beam is technically superior,” Vicini said. sortium approach. president and CEO, said he is talking lease from ProCure, is estimated to “Whether or not that improvement in quality justifies the Beaumont CEO Ken Matzick with Beaumont about the joint ven- cost $159 million, including $77.5 mil- increased costs is the question. With pediatric cases, there agrees with the idea of a consortium, ture. He said he also is talking with lion for the equipment, according to is no question. You want the best care for children.” but only if there is a lead hospital. the other hospitals about the consor- the application. The facility could Dr. Howard Sandler, senior associate chair of radiology “It is just unreal- tium. “There isn’t a need for multiple treat up to 1,500 patients annually. oncology at the University of Michigan, agrees the technology istic to think about centers,” he said. Under the proposed deal, Beau- is useful for treatment for certain cancers in children, but having eight differ- Robert Riney, Henry Ford’s COO, mont and ProCure would create a said it still is unproven on cancers such as prostate. ent hospitals com- said he believes a consortium can be new company — Detroit ProCure Man- “There isn’t any scientific data for use on prostate cancer. ing together to do formed in the next few months. agement L.L.C. — that would operate It is an area that should be studied with clinical trials,” he this venture in a “We applied because we don’t know the proton-beam facility under Pro- said. consortium,” he what the new rules will be and want- Cure management, Matzick said. Some five proton-beam facilities are in operation in the said. “These rela- ed to have a placeholder in the Beaumont would contribute $13 U.S. with two under development in Chicago and one in Ok- tionships are com- process,” Riney said. “Our interest in million to $20 million in equity for the lahoma City. The first unit was installed in 1990 at Loma Lin- plicated.” applying is only to participate in the project, Matzick said. ProCure would da University Medical Center, Loma Linda, Calif. Dr. Benjamin Movsas, Henry Ford’s chair of radiation on- Matzick Tuesday, the consortium with other providers.” finance the remaining amount, said CON Commission Karmanos officials also said they Preisdent and CEO Hadley Ford. cology, said a consortium of hospitals should decide which meets to consider a rule change that prefer to participate in a consortium. While the state has proposed that types of patients should be treated. “This project needs to be would require hospitals seeking to Dr. Benjamin Movsas, Henry the consortium include only 10 hospi- done in a way where there are clinical trials.” he said. operate proton-beam accelerators to Ford’s chair of radiation oncology, tals, including five in Southeast While early versions of the proton-beam machines cost form a statewide collaborative. said only one proton-beam facility is Michigan, others could be added upwards of $120 million, Movsas said newer types of the It is unclear what effect that rule needed in Southeast Michigan. But based on their location. The state tar- technology could bring down the price to under $40 million, change would have on pending appli- Dr. Frank Vicini, Beaumont’s med- geted the hospitals based on a mini- not including building or other capital costs. cations. Those are reviewed by the ical director of oncology services, mum of 30,000 total radiation therapy Marsha Manning, manager for General Motors’ Southeast state Department of Community Health. said there could be a need for two or visits, adjusted by levels of intensity. Michigan Community Health Care Initiatives, said the types of Andrea Moore, a community three facilities. The five area hospitals are Kar- patients treated with the technology should be studied. health department technician serv- The project has caught the atten- manos, Beaumont, Henry Ford, Uni- “There is a lack of consensus among physician leaders ing the CON Commission, said the de- tion of The Economic Alliance of Michi- versity of Michigan Hospitals, Ann Ar- from the state’s major cancer centers and experts at our partment has until June 30 to make a gan, Novi, which cautioned that com- bor, and St. Joseph Mercy Hospital, Ann state’s medical schools regarding the efficacy of this tech- decision on Beaumont’s application. petition between hospitals for Arbor. nology in other than a small number of cancer cases,” she Moore said the proposed rule change multiple proton-beam facilities could Jay Greene: (313) 446-0325; said. “Most of the high costs for this ... will ultimately be could take until July or later to be- lead to higher patient care costs. [email protected] paid by taxpayers, employers and individual patients.”

Cost: Customer surcharge, spending cap debated for green power ■ From Page 1 amounts, the provider would need structures, establish a new ap- lecting anything until these pro- to increase renewable energy as competitive,” said Dave Waymire, to go no further toward achieving proval process for power plants jects go on line.” well as pave the way for more tra- spokesman for the coalition and the RPS, even if it had not reached and other electricity generation, Off-ramps such as those in the ditional power plants in Michigan partner in Lansing public-rela- the full 10 percent. and narrow the Michigan law that House approach are key to a reso the state is not reliant on out-of- tions firm Martin Waymire Advocacy “It just puts a governor on it so lets customers choose alternative- newable mandate winning the ac- state power. Communications Inc. that we don’t have dramatically in- electricity suppliers. ceptance of some business groups. State Rep. Dave Palsrok, R-Man- There are many variables in the creasing costs,” said House Speak- Both DTE and CMS support the “Nobody wants to have sticker istee, co-chair of a subcommittee debate over future prices: Some er Andy Dillon, D-Redford Town- RPS with caps, provided it is part shock,” said Hadden. “I oppose a that worked on the RPS issue, said point to items like coal prices and ship. “The mere fact we have that of the comprehensive package be- mandate that forces companies to it is important to diversify Michi- federal regulations that can in- 10 percent, it’s going to invite peo- ing discussed in the state House. do something that may end up gan’s energy portfolio and lessen crease the future cost of coal ple to come and “Our goal is going to do this as costing the customers more mon- reliance on plants that produce plants, while others cite un- experiment in effectively and efficiently as possi- ey, which this would do. Having higher-cost power used at peak knowns on the renewable side, like Michigan.” ble, so we can accomplish it,” said said that, if you’re going to have a times. the future availability of a federal It’s a topic Trevor Lauer, DTE vice president mandate … then we’d better have “There is a severe cost to doing tax credit for wind power produc- that states of retail marketing. “We’re sup- safety valves in there.” nothing,” Palsrok said. tion, transmission costs, and around the portive of the 10 percent, as long as And even then, he and Doug But others say Michigan needs a prices for turbines. country have the appropriate off-ramps are Roberts Jr., director of environ- different approach. Experts say states need to take a grappled with as there.” mental and energy policy at the A coalition of large- and small- complex variety of factors into they’ve enacted Off-ramp is the term being used Michigan Chamber of Commerce, business groups, consumer inter- consideration in crafting renew- renewable port- in Lansing to describe the circum- said price caps alone aren’t ests and alternative-electricity able standards that achieve their folio standards. stances that allow utilities and al- enough. Another item essential to suppliers says Michigan needs to Dillon goals. An April 2007 study of state According to the ternative-electricity providers to their support is passage of legisla- inject competition to ensure the National Conference of State Legisla- stop progress toward a renewable tion that would alter Michigan’s lowest cost as the state moves to- standards, by Lawrence Berkeley Na- tures, 25 states and the District of portfolio standard if the cost be- utility-rate structure and end a ward additional power sources. tional Laboratory scientist Ryan Columbia have renewable stan- comes too high. system in which business cus- The Customer Choice Coalition says Wiser and members of the federal dards, while three additional But Andy Such, president of MI tomers pay higher rates to subsi- that new renewable power should Energy Information Administration, states have set voluntary goals. Energy Future — a coalition of busi- dize residential customers. be compared to the cost of a new finds that some RPS programs “ap- Glen Andersen, program princi- ness, manufacturing, agriculture Roberts said revising the rate coal-fired plant, and supports Sen- pear to have stimulated significant pal at NCSL, said some states have and environmental interests that structure to have it reflect cost of ate legislation that would set up a renewable development, and at enacted caps or grace periods for is seeking an RPS — said one prob- service would produce a 10 percent process for bidding on new power relatively low cost, while others utilities, and states have also in- lem with the House approach is rate reduction for business cus- plants as well as all renewable-en- have not.” cluded energy efficiency as a way that it places a surcharge on customers, against the 0.8 percent rate ergy projects, like wind farms, that That study and one a month be- to achieve an RPS goal. tomers before the renewable pro- increase that would result from the state would need to meet the fore it, also co-authored by Wiser, In Michigan, an RPS is part of a jects are built. the renewables surcharge as pro- RPS. also finds that RPS policies have complex energy debate in the Leg- “Collecting money up-front posed in House legislation. “It’s very important that we give not had a sizable impact on most islature that includes bills that makes it a self-fulfilling prophecy He said the chamber can sup- renewables an opportunity to com- electricity rates. would set new standards on ener- that renewables will cost more,” port the renewables surcharge as pete against new coal plants, and Amy Lane: (517) 371-5355, gy efficiency, alter utility rate Such said. “We shouldn’t start col- part of a comprehensive package we believe that they may be quite [email protected] DETROIT BUSINESS MAIN 03-10-08 A 29 CDB 3/7/2008 5:37 PM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 29 Avenue: Livernois merchants, city want revival www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] most two years ago, and he said uing to circulate in the community only sit-down restaurants. EXECUTIVE EDITOR Cindy Goodaker, (313) 446- he’s been pleased with his decision as a reinvestment in ourselves.” “I knew automatically that some 0460 or [email protected] ABOUT THE RETAILERS GROUP MANAGING EDITOR Andy Chapelle, (313) 446- — despite a roughly 40 percent The city is offering resources to of the most expensive homes in De- 0402 or [email protected] Formed last year, the Independent drop from the $1.2 million in rev- Next Detroit business owners, in- troit are in this area,” said Dress- ASSISTANT MANAGING EDITOR/FOCUS Jennette Retailers Association of Detroit is Smith, (313) 446-1622 or [email protected] enue he said Simply Casual a small organization with big goals. cluding an energy audit designed ing Room owner Chaz Duckett, 27. BUSINESS LIVES EDITOR Michelle Darwish, (313) brought in before the move, which to point out cost-saving, energy-ef- “And the market is underserved. If 446-1621 or [email protected] The group has about 15 members COPY DESK CHIEF Gary Piatek, (313) 446-0357 he attributes to the economy and representing about 22 businesses, ficient improvements, grant mon- you can pay that much for a home, or [email protected] the cost of moving shop. said member Rufus Bartell. ey to execute the results, and train- you should be able to go around GRAPHICS EDITOR Nancy Clark, (313) 446-1608 But he’s not content to stake out ing for business owners with more the corner and buy yourself a pair or [email protected] Businesses fall into six categories: COPY EDITOR Vic Doucette, (313) 446-0410 the corner of Livernois and Outer retail, art galleries, cafes, than one storefront. of slacks.” or [email protected] Drive. Bartell hopes Simply Casu- restaurants, salons, spas and Entrepreneurs can apply for the Duckett said neighborhood re- DATA EDITOR Anne Marks, (313) 446-0418 or fitness, and clubs and lounges. [email protected] al will become the cornerstone of a Small Business Detroit MicroLoan sponse has been great, with folks WEB GENERAL MANAGER Alan Baker, (313) 446- retail renaissance on Livernois, a The group hopes to amass a broad Program — a fund with a $1.5 mil- stopping in, asking how long he’s 0416 or [email protected] base of entrepreneurs and match WEB EDITOR Kevin Hill, (313) 446-0473 or catalyst in reaching the crucial lion pot — through the ONCR, been there. [email protected] tipping point at which a neighbor- them with vacant retail real estate Winters said, and existing busi- Unique Feet owner Rhoda Gre- WEB DESIGNER/PRODUCER Ai-Ting Huang, in the city, Bartell said. (313) 446-0403, [email protected] hood attains enough momentum to nesses can apply for façade im- gory said she’d noticed empty Such activity can hasten a MULTIMEDIA REPORTER Nathan Skid, (313) become a destination. provement grants worth $15,000. store fronts on Livernois — but 446-1654, [email protected] neighborhood’s tipping point, said Residents, Bartell said, walk Such dollars, said Heather Car- also noticed when a handful of new RESEARCH ASSISTANT Joanne Scharich, (313) Derrick Coleman, developer, IRA 446-0419 Livernois’ broad sidewalks in Detroit member and owner of mona, executive director of the stores opened. EDITORIAL SUPPORT Anita Duncan, (313) summer, but in winter, there’s lit- Woodward Avenue Action Association, “I wanted to be part of the revi- 446-0329 Sweet Georgia Brown’s and Snyx NEWSROOM (313) 446-0329, FAX (313) 446- tle incentive to brave the snow- Sneaker Studio. can be key to creating a viable talization of Detroit, because that’s 1687 TIP LINE (313) 446-6766 piled median and ice-patched side- “Not just one retailer, but a group commercial corridor. Carmona’s where I grew up,” she said. REPORTERS walks. of different retailers, instead of group’s goal is to spur commercial Duckett has high hopes for the Brent Snavely, senior reporter: Covers auto one person going in and trying to suppliers, steel and restaurants. (313) 446-0405 But all that can change. development along the entire strip. or [email protected]. “If we fill all the storefronts, establish his business in an area,” Woodward corridor. “Me and my friends, we said this Robert Ankeny: Covers the city of Detroit, Wayne we’ll create a walkable neighbor- Coleman said. “There’s always “A lot of what we’ve worked on could be the black Birmingham, County government, and law. (313) 446-0404 or strength in numbers.” [email protected]. hood,” he said. “And then we can is creating a framework for physi- where you see lines of small busi- Sherri Begin: Covers nonprofits and services. — Nancy Kaffer (313) 446-1694 or [email protected] duplicate the strategy around the cal improvement in the area,” she ness, retail stores, boutiques — Daniel Duggan: Covers real estate and hospitality. city.” said. “There are some business you just have to have the support (313) 446-0414 or [email protected] to develop, specifically, a business Jay Greene: Covers health care, insurance and the Through the fledgling Indepen- owners that are going to plop down of the community,” he said. “We environment. (313) 446-0325 or dent Retailers Association of Detroit, attraction and retention strategy anywhere, while others say ‘this need a few more things, like park- [email protected]. for the Livernois/Seven Mile Road Chad Halcom: Covers education, non-automotive an organization that aims to pair area doesn’t look so nice.’ ” ing, but other than that, I’m telling manufacturing, defense contracting and Oakland community,” said Marja Winters, and Macomb counties. (313) 446-6796 or business owners with vacant Downtown Ferndale, Carmona you, I can see it being real swanky, [email protected]. storefronts, Bartell is working to director of the mayor’s Office of said, is a prime example of what real nice.” Tom Henderson: Covers banking, finance, Neighborhood Commercial Revi- technology and biotechnology. (313) 446-0337 or recruit new small businesses to can happen when public invest- Stallings, who’s been in busi- [email protected]. the neighborhood to create that talization, referring to the Detroit ment is leveraged to improve me- ness on the avenue for 10 years — Nancy Kaffer: Covers small business and retail. Economic Growth Corp. “We hope (313) 446-0412 or [email protected]. walkable streetscape. (See box.) dians, install trash cans and create with revenue last year of roughly Bill Shea: Covers media, advertising and “People want to shop and get to have strategy developed and im- a pleasant streetscape. $300,000 — said he thinks Coffee, marketing, entertainment, the business of sports, transportation and Livingston and Washtenaw amenities close to home,” he said. plemented by the end of the year — Some new businesses have set Cream ’n’ Things will meet a need counties. (313) 446-1626 or [email protected] “We want to be able to develop a and that it’s a sound strategy to up shop. Among them are Bartell’s in the community. LANSING BUREAU Amy Lane: Covers business issues at the Capitol, mix of businesses and services. use in other areas.” Shoehouse Boulevard, a sister store “One of the reasons why I think telecommunications and utilities. (517) 371- The community is one of the six 5355, FAX (517) 371-2492, [email protected]. or Right now we’ve got people work- to Simply Casual; another shoe the coffee shop will be a wonderful 115 W. Allegan, Suite 220, Lansing 48933. targeted for investment by Mayor ing on the idea of coffeehouses … store, Unique Feet, set to open April attraction to the avenue is that it ADVERTISING Kwame Kilpatrick’s Next Detroit what we need next is a sit-down 5; the Dressing Room, a men’s suit will force people to walk, like they ADVERTISING DIRECTOR Marla Downs, (313) restaurant, a copying and printing Initiative, Winters said. store that’s been open for almost do in Soho, in Chicago, in Birming- 446-6032 or [email protected] “Looking five to 10 years down SALES INQUIRIES: (313) 446-6052; FAX (313) place, home accessories.” three months; and longtime Art on ham,” he said. “It has to be the 393-0997 Bartell isn’t the only one who the road, we see (the Avenue of the Ave owner Henry Stallings will thing that happens in order for ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, sees the Avenue of Fashion as a Fashion) as a destination place,” open Coffee, Cream ’n’ Things, a cof- this area to survive.” Cathy Ross, Dale Smolinski test case for Detroit revitalization. Winters said. “From an economic feehouse, eatery and music venue Nancy Kaffer: (313) 446-0412, WESTERN ACCOUNTS Ellen Mazen (Los Angeles) “We’re meeting with the DEGC perspective, we see dollars contin- that will become one of the area’s [email protected] (323) 370-2477 CLASSIFIED MANAGER Melissa McKay, (313) 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Greg Evangelista, 313-446-1655 MARKETING DIRECTOR Michelle Minor EVENTS MANAGER Nicole Wiedling MARKETING ASSISTANT Jennifer Dunn Lowe’s: MARKETING ARTIST Sylvia Kolaski Store will fill last parcel at Baldwin, I-75 SALES SUPPORT Suzanne Janik, Andrea Beckham, YahNica Crawford ■ From Page 1 CIRCULATION Candice Yopp, Manager. PRODUCTION MANAGER Wendy Kobylarz No other vacant parcels are available, so fu- 450,000-square-foot Baldwin Commons before it the eastern properties are too far from the free- PRODUCTION SUPERVISOR Larry Williams, (313) 446-0301 ture growth would mean knocking down exist- opened. way, Robinson said. SUBSCRIPTIONS (313) 446-0450, ing buildings. Farmington Hills-based Ramco Gershenson Some development can take place to the (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: It’s fitting that Silverman develops the last Properties Trust developed the Auburn Mile, a north of Brown Road in Orion Township, but it (313) 446-0367 or e-mail the Crain Information parcel, because the company also built the first 624,000-square-foot collection of big-box retail- won’t be retail, said Orion Township Supervi- Center at [email protected]. development at the corner: the 548-unit Lake ers along one mile running parallel to I-75 and sor Gerald Dywasuk. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. Village apartment complex on the west side of Brown Road. “We have no interest in becoming another CHAIRMAN Keith E. Crain Baldwin Road. “We knew there was a market in that area for Lakeside Mall,” he said. PRESIDENT Rance Crain SECRETARY Merrilee Crain “We were the first and we what we do,” said Joseph Sutschek, vice presi- The area is slated for a combination of re- TREASURER Mary Kay Crain are the last,” said Silverman dent of development. “But what really in- search and development or light industrial Executive Vice President/Operations William A. Morrow President Steve Robinson. trigued us was the opportunity to acquire one uses, he said. Group Vice President/Technology, Baldwin Road wasn’t mile of frontage on I-75. That doesn’t happen CB Richard Ellis First Vice President Jeff Bell, Manufacturing, Circulation Robert C. Adams much of a hot spot until every day.” marketing a 4.25-acre site on the north side of Vice President/Production & Manufacturing Bloomfield Hills-based Taub- Other smaller developments have filled in Brown Road from the Auburn Mile develop- Dave Kamis Corporate Director/Circulation man Centers Inc. developed gaps along the main roads, bringing four- or five- ment, said it seems the only way to have a com- Patrick Sheposh Great Lakes Crossing, said store retail centers and restaurants to the area. mercial use on the property is to tie it to a light G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Chris Brochert, a partner Commerce Township-based Truss Develop- industrial operation. EDITORIAL & BUSINESS OFFICES: Robinson with West Bloomfield Town- ment opened a Holiday Inn Express on the east “We’ve looked at prospects with a major in- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 ship-based Lormax Stern Development Co., which side of Baldwin Road. dustrial component and then a showroom con- Cable address: TWX 248-221-5122 AUTNEW DET developed the nearby Baldwin Commons retail It’s been interesting to watch the develop- cept so they can take advantage of the Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. property in partnership with Troy-based Kirco ment activity fill the area, Robinson said. But frontage,” he said. Outside U.S.A., add $48 per year to out-of-state Development Corp. and Detroit-based Walbridge all the while, his development firm was looking Looking back, Robinson said, the development rate for surface mail. Reprints: For inquiries call the reprints department Aldinger. for other opportunities in the area. in Auburn Hills has been key to serving the Oak- at: (800) 494-9051, Ext. 144 , or at In fact, Brochert took a look at some of the Silverman persuaded Taubman to sell the land County population that migrated north. [email protected] CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is sites before Great Lakes Crossing was pro- 17.4-acre site northeast of Great Lakes Crossing But it hasn’t been easy. published weekly except for a double issue the two years ago. But the rolling hills on the site Every developer had to widen roads, cut second week in August by Crain Communications posed. The location was great, he said, but it Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. wouldn’t appeal to retailers. had to be flattened, valleys filled and a wetland down trees and — most of all — flatten the Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send “Back then it was pretty much the boon- moved before a company like Lowe’s would be area’s rolling hills. address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI docks,” he said. interested in the estimated $18.5 million project. “The rules of real estate are location, location, 48207-9732. GST # 136760444. Printed in U.S.A. Once the development started, the boondocks Further growth to the south is hampered by a location,” he said. “Flat isn’t a requirement.” Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. boomed. landfill and wetlands that can’t be developed. Daniel Duggan: (313) 446-0414; Reproduction or use of editorial content in any Brochert and his partners nearly leased the Residential development lies to the west, and [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 03-10-08 A 30 CDB 3/7/2008 5:51 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS March 10, 2008 IMRA: Ultrafast lasers bring precision, profits to Ann Arbor firm ■ From Page 3 research institutes, and the photonics, microelectronics and “IMRA America Inc. has proven its ability to develop and semiconductor industries. A FEMTOSECOND PRIMER manufacture state-of-the-art femtosecond fiber lasers which IMRA America’s parent company, Aisin Seiki, is based in fulfill the high-quality requirements that we apply to all the What is a femtosecond? It is one-quadrillionth of a second. Kariya, Japan. IMRA takes its name from the first facility components of our medical products,” said Mark Bischoff, To put that in perspective, consider: the company built, which opened in Nice, France, in 1986 as manager of refractive-surgery research and development at the Institut Minoru de Receherche Avancee, now known as Ⅲ Light travels through space at about 186,000 miles a Carl Zeiss. IMRA Europe S.A. second. Light from the surface of the sun hits the earth in In November, Toptica Photonics A.G., a maker of diode about eight minutes and 20 seconds, having traveled about According to IMRA President Takashi Omitsu, the com- lasers and other laser equipment based in Munich, Ger- 93 million miles. pany grew its revenue from about $12 million in 2006 to many, signed a licensing agreement to use IMRA’s femtosec- Ⅲ The moon is about 240,000 miles from earth. Light covers about $15 million last year. It projects revenue up to $20 mil- ond fiber technology to expand its product line. IMRA has that distance in 1.3 seconds. When you look up at the moon, lion this year. been granted about 100 U.S. patents. The “fast” in ultrafast refers not to the speed of the laser the image processed in your brain is light that came from the moon 1.3 seconds ago. In December 2006, Washington-based Aculight Corp., a na- beam, which is fixed by the laws of nature at about 186,000 Ⅲ In a thousandth of a second, a millisecond, light travels tional defense and homeland security contractor, licensed miles a second, but to the short duration of the laser pulses. IMRA’s technology for an array of possible products. A pulse of light from IMRA’s fiber-optic laser lasts for sev- about 186 miles. In a millionth of a second, a microsecond, it travels about 982 feet. In a nanosecond, a billionth of a Dave Clark is senior director of strategic marketing for eral hundred femtoseconds, with more than 100,000 separate second, it travels almost one foot. California-based Newport Corp., also a maker of laser compo- pulses each second. A femtosecond is one-quadrillionth of a nents and one of IMRA’s competitors. second. Ⅲ So, how far does it travel in a femtosecond, or a quadrillionth of a second? If you took an average human hair He said femtolasers were traditionally used mostly in uni- The result is extremely precise cutting — whether it is of and shot a beam of light across the diameter of its base, it will versity and government research. They were expensive, dif- silicon wafers for integrated circuits, or on human corneas take about 330 femtoseconds for the light to make it from one ficult to operate and weren’t feasible for many manufactur- for sharper vision, fewer side effects and a quicker recovery side of the hair to the other. ing or commercial applications. time. If a femtosecond isn’t short enough — and it isn’t for some Silicon chips, for example, are so small that about 50,000 “But IMRA has been working to change that. IMRA has researchers — there’s something called an attosecond, which been a pioneer, and is very well-regarded,” said Clark, who of them can be made on a single CD-like silicon wafer 12 is a billionth of a billionth of a second, or one-thousandth of a said IMRA’s approach of using fiber-optic cabling to replace inches in diameter. The chips must then be cut apart in a femtosecond. discrete optical components in lasers has bought down the process called dicing that can result in a high percentage of The shortest burst of laser light ever recorded is 130 cost and the operational difficulties. damaged rejects. attoseconds. Other applications for the femtosecond lasers are in auto- Femtosecond lasers reduce collateral damage during dic- — Tom Henderson ing. motive manufacturing, dentistry, dermatology, high-end IMRA’s fiber-optic lasers are cheaper to build and use far Germany-based Carl Zeiss Medica A.G. makes its own lasers electronic instrumentation, homeland security and micro- less electricity than traditional solid-state lasers, which are for its surgical tools. It has bought laser equipment from electronics testing and repair. bulkier, use more components and require a cooling source. IMRA for three years for its research and development de- Strategies Unlimited, a California-based research unit of The guts of IMRA’s various laser systems fit into metallic partment. PennWell Corp., estimated that fiber-laser sales exceeded $240 boxes that look something like a DVD player. Last year, the company began buying entire IMRA laser million in 2007, up about 39 percent over 2006, and are ex- Its lasers range from about $200,000 for those used in man- systems to power some of its Lasik eye-surgery devices, in- pected to have an annual growth rate of 26 percent through ufacturing to about $300,000 for those used in scientific re- cluding its new VisuMax, which received U.S. Food and Drug 2011. search. Administration approval to begin selling in the U.S. last year. Tom Henderson: (313-446-0337), [email protected]

Lending: Fewer SBA loans are granted ■ From Page 3 manager. “Those are very good, the SBA. profitable customers, and those “We couldn’t have done it with- customers will evolve in time … out them,” he said. “They helped but we devote the effort because me out.” we think they’re profitable now.” Last year, the Michigan Economic Conley said his team will contin- Development Corp. commissioned a ue to make SBA loans, but said that study of small-business lending in J.P. Morgan Chase first attempts to Michigan in response to concern qualify loan applicants without an from the business community, ac- SBA guarantee. cording to public At National City information officer Bank, Michigan, the The quality of Bridget Beckman. number of loan ap- “ The availability plications has de- the applications of startup dollars creased, said David for small business- Morrison, state sales we’re seeing is es is a key element executive for busi- in the diversifica- ness banking. down as well. tion of the state’s “It’s slightly down ” economy, Beckman from last year in David Morrison, wrote in an e-mail terms of opportuni- National City Bank, Michigan to Crain’s Detroit ties that we’re see- Business. ing,” he said. “And “Michigan is in- the quality of the applications tently focused on diversifying the we’re seeing is down as well.” economy, and entrepreneurs are The SBA ranked National City already playing a big role in devel- the second top lender in the state oping several high-tech sectors,” for fiscal 2007. Beckman wrote. For business owners like Tony “Access to capital can be a Stovall of Hot Sam’s clothing store make-or-break issue for small in Detroit, SBA lending played an businesses. We want to make sure integral role in his transition from that Michigan’s lending practices employee to boss. not only support our homegrown In 1994, Stovall had been a innovators but that our financing staffer at the store for 20 years options stack up well against other when he began to investigate loan states when it comes to attracting prospects. He queried different new businesses.” lenders, but soon realized he was The MEDC study could be avail- getting a bum deal. able by April, Beckman said. Like many hopeful business Nancy Kaffer: (313) 446-0412, owners before him, he turned to [email protected] DETROIT BUSINESS MAIN 03-10-08 A 31 CDB 3/7/2008 6:02 PM Page 1

March 10, 2008 CRAIN’S DETROIT BUSINESS Page 31 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 1-7

way to raise more revenue others have inquired about Also, Michigan State Police for the city and state. ArcelorMittal the possibility of operating investigators looking into The 24 percent tax, estab- similar restaurants. Kilpatrick’s rumored New football lished in 2004, was split 12.1 Manoogian Mansion party percent to the state and 11.9 will loan Noble ON THE MOVE wanted to arrest then-may- percent to the city. The new oral Chief of Staff Christine rate of 19 percent has the Denise Tolliver to press Beatty and have her charged league may state getting 8.1 percent $50 million secretary for the mayor of with perjury in 2003, The De- and Detroit getting 10.9 per- Detroit, from deputy chief of troit News reported. cent. rcelorMittal S.A., the staff and communications di- The investigators be- MGM Grand Detroit Casino world’s largest steel rector for U.S. Rep. Edolphus lieved they could not pursue L.L.C. achieved permanent A manufacturer, has Towns, D-N.Y. She replaces the case because Attorney be sacked status on Oct. 3 and re- agreed to provide Troy- Matt Allen, who resigned. General Mike Cox shut down ceived the tax cut starting based Noble International Ltd. Patrick McQueen to the probe prematurely. tudent loan tycoon Katz said a TV deal is on in December, saving almost with a $50 million loan, and chairman and CEO, The Pri- Marcus Katz needs the table, but he won’t A memorial service for $4.7 million in two months. has also offered to buy vateBank-Michigan, Bloom- former United Auto Workers S $30 million by name the network. He said stock held by Robert Skan- field Hills, from president Wednesday. the network won’t sign the President Doug Fraser is dalaris, Noble’s chairman and COO. He replaces David That’s when the six deal until he has new in- Yacht club, cultural groups planned for April 12 at the and founder. Provost, who resigned to Community Arts Auditori- teams in his All American vestors, but new investors offer cross-memberships The loan requires Noble Football League — its Team want a broadcast deal in pursue other opportunities. um at Wayne State University. The Detroit Yacht Club is to cede control of the com- Michigan has a deal to play place. Francine Parker, presi- A search panel at Ma- hoping to entice new mem- pany to ArcelorMittal. at Ford Field — were sup- “It’s like the chicken- dent and CEO of Health Al- comb Community College has bers by offering $600 worth Last August, ArcelorMit- posed to open training and-egg thing,” he said. liance Plan, is resigning ef- announced four finalists to of additional memberships tal received a 40 percent camp. Trouble is, spillover Katz doesn’t sound brim- fective replace outgoing President to five area cultural organi- ownership stake in Noble from the subprime mort- ming with optimism when March 31 Albert Lorenzo. They are: Rose zations when they join the when Noble acquired one of gage crisis into the student asked about the league’s fu- for per- Bellanca, president, St. Clair club. its divisions. loan market means he does- ture in general, and in De- sonal rea- County Community College and The Detroit Institute of Arts, Noble (Nasdaq: NOBL) n’t have troit specifically. He said sons. Pa- former MCC provost; James Detroit Zoological Society, De- has been out of compliance the addi- he’s blunt with potential in- tricia Jacobs, director, MCC Center troit Science Center, Charles on a line of credit and a tional $30 vestors about the risk with Richards, for Workforce Development and H. Wright Museum of African loan since September and million a startup football league. HAP’s Policy; Gena Glickman, vice American History and The Hen- has received several needed to “I wish I could say I was COO, has president, teaching, learning ry Ford are working with the waivers from lenders, ac- complete really confident,” he said. been and student development, El- yacht club by providing cording to the company’s the inau- “I’m not sure how we’re go- Parker named gin Community College, Elgin, their memberships to the last quarterly report, filed gural sea- ing to do in Detroit.” interim Ill; and Laurence Spraggs, yacht club at “greatly re- with the U.S. Securities and son. The CEO. A search for a new president, Broome Community duced rates,” said Kelly Exchange Commission in No- camps CEO will begin later this College ,Binghamton, N.Y. Brault, senior development vember. are de- MotorCity Casino month. Wayne State University Katz manager at the Detroit Sci- On Feb. 15, Noble’s lead layed, Melvin “Butch” Hollowell School of Medicine will lay off applies for tax break ence Center. lender, Comerica Bank, and unless Katz finds some was appointed by Gov. Jen- an unspecified number of Said Brault: “We’re able agreed again to waive No- deep-pocket investors, the MotorCity Casino, whose employees this week be- to provide more value for ble’s violation of its lending nifer Granholm as the AAFL is finished before it parent company Detroit En- cause of an ongoing dispute their members … and agreement as long as Noble state’s begins. tertainment L.L.C. is wholly over Medicaid payment with broaden our membership was able to find funding of at first auto- Katz turned to Ted Turner, owned by Marian Ilitch, who the Detroit Medical Center. base.” least $35 million by March 1. mobile Donald Trump and other is co-founder with husband Only nine Detroit Tigers Mike of the Little Caesar’s and home games will be broadcast on moguls in his quest for new insur- money, but found no tak- empire, wants a $24 million BITS &PIECES Study urges light rail on over-the-air TV this season. annual pay hike. ance con- ers. Quicken Loans/Rock Fi- Blue Cross Blue Shield of That’s roughly the Paula Blanchard Stone, Woodward Avenue sumer Michigan reported Feb. 29 nancial founder Dan Gilbert, president of The Paula Blan- amount the casino reaps if The 18-month The Detroit advocate, that net earnings declined who also owns the Cleveland chard Cos. and partner in its request for “tax base re- Transit Options for Growth Study effective for the third straight year, Cavaliers, is on Katz’s to-call McCarthy Blanchard L.L.C. has duction certification” is ap- recommends building a pub- April 6. down 27 percent to $152.2 list. been named the recipient of Hollowell proved Tuesday by the licly funded $371.5 million Ha- million in 2007 from $210 mil- “I spent a quick $30 mil- The Michigan Gaming Control light-rail line along eight ruya Maruyama to president lion the year before. Rev- lion on the league, and it’ll Athena Board. MotorCity last year miles of Woodward Avenue and CEO, Denso International enue increased 19 percent to take another $30 million to Award by logged more than $480 mil- from downtown to the Michi- America Inc., Southfield, from $19.4 billion in 2007 com- run the league. I don’t have the Lans- lion in revenue and paid gan State Fairgrounds. a managing officer position pared with $16.3 billion. The that,” he told Crain’s. ing Cham- the city and state 24 percent The study by the Detroit in Germany. He replaces Mit- loss was attributed to $307.2 The money he set aside ber of off the top in gaming taxes. Department of Transportation is suo Matsushita, who retired. million in losses on its for the league from the sale Commerce the first step in securing Fed- Larry Emmons, regional health insurance offerings. of his shares in San Diego- That rate drops to 19 per- at its an- eral Transit Administration New director in the Southfield A bill allowing an au- based Goal Financial L.L.C. cent on each casino once nual Starts Program funding. office of First Industrial Real- thority that could levy taxes evaporated as the crisis they open their permanent meeting. Construction could begin ty Trust, to senior invest- to support the Detroit Zoo was deepened. The company, operations. The state raised The Blanchard Stone in 2010. The line would ment officer for the state of discussed Thursday in the owned by Katz’s son, has $8 the gaming tax from 18 per- Athena have 13 to 15 stops. Florida. Legislature. billion in student loans out. cent to 24 percent in 2004 as Award is a national award The study and recommen- Tom Celani, owner of Mo- “It was impossible to get an incentive for the Detroit that recognizes professional dation are separate from a torCity Harley Davidson, has any cash out of the (student casinos to move ahead on achievement, community OTHER NEWS developing transit proposal dropped plans to buy a stake loan) business. It was a the larger, permanent de- service, and opening paths first reported Feb. 25 in Detroit Mayor Kwame in Greektown Casino L.L.C. bunch of paper.” velopments, as well as a for women. Crain’s that would spend Kilpatrick has challenged the Citizens First Bancorp Inc. $103 million in private mon- Wayne County Elections Com- plans to acquire Auto Club ey to build a light-rail line on mission’s approval of a re- Trust in Dearborn in a $5 mil- Woodward, running 3.4 call petition against him, lion stock purchase. miles from Hart Plaza to claiming the man circulat- Delphi Corp. cannot ac- News for builders — and for duffers Grand Boulevard. ing the petitioner doesn’t cept more than $2 billion in live in Detroit, the Associ- loans directly from General Our list of Southeast Michigan’s On another subject, you may not think ated Press reported. largest construction projects on Page it with the kind of winter we have had, La Shish chain closes Motors Corp., a bankruptcy 16 is just the beginning of what we’re but golf season is not too far away. Also, a federal judge has judge ruled, but said it could offering online this week. To help get you ready, Crain’s has Eleven restaurants ordered the city and SkyTel to still get help from GM if the The interactive version of this list is created a special home online for you owned by Dearborn-based preserve certain messages money came through an in- available at www.crainsdetroit.com/ to promote and plan their La Shish Inc. closed March 1 from 34 city pagers, includ- termediary, the Associated construction. There you’ll find 15 tournaments at after several years of legal ing the mayor’s, in connec- Press reported. additional ranked projects as well as www.golfeventguide.com/detroit. The battles between owner and tion with a lawsuit brought site launched earlier this year and photos and information not found in founder Talal Chahine and by the family of a slain 27- has more than 60 tournaments listed, BITUARIES the print issue. the U.S. government. year-old exotic dancer. O If you want even more entries, you starting with the March 24 Frostbite Open at Plymouth’s Fox Hills. Darren Frankel, principal And, the Detroit City R. Cabell Morris, 81, who can buy a downloadable spreadsheet of Stuart Frankel Development Council on Tuesday resched- was part owner of Mutschler of all data we collected in making this WEB WORLD You can also register to be notified Co., landlord for three of the uled to March 18 a vote on a list. To find this expanded download Kevin Hill about new tournaments in your area, Kitchens Inc., Grosse Pointe and to buy any of our previous lists, go to and event organizers can let golf restaurants, said managers resolution asking Kilpatrick Woods, died of multiple www.crainsdetroit.com/lists. courses compete to host their event. within La Shish as well as to resign. myeloma March 2. DBpageAD.qxd 2/19/2008 12:19 PM Page 1