Surviving Car Dealers Find Stability, Profits

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www.crainsdetroit.com Vol. 26, No. 34 AUGUST 23 – 29, 2010 $2 a copy; $59 a year

Packaged with today’s edition is Living and investing in the D: 25 dimensions of Detroit, which uncovers the city’s hidden treasures and examines NATHAN SKID/CRAIN’S DETROIT BUSINESS The opening of Frost Cadillac in Novi is just one recent business twist for Dan Detroit’s ongoing reinvention. To in arrears Frost, who with his business partners has lost two Hummer dealerships and buy copies, call (877) 824-9374. seen competitors to his Chrysler dealerships close. Page 3 Racecourse fights assessments, $30M senior living complex Surviving car dealers battles other financial problems planned for east riverfront BY BILL SHEA CRAIN’S DETROIT BUSINESS WHAT THE BILLS ARE Tigers’ $100M-payroll era Pinnacle Race Course in Wayne These are some of the financial could draw to a close find stability, profits County’s Huron Township hasn’t issues facing Pinnacle Race paid a combined $1.46 million in Course: property taxes for 2009 and 2010 Property taxes: $730,000 because it didn’t receive its tax owed for 2009 and $730,000 for 2010. Inside Sellers adjust to low volume bills — a bureaucratic snafu, the county and township said. Police: $150,000 owed to BY DANIEL DUGGAN standards — nearly $1 million at Huron Township. The track’s owners are disput- More trouble predicted as CRAIN’S DETROIT BUSINESS each — and the startup costs of the ing, via the state tax appeals Utilities: Water and electricity new Cadillac franchise. had been shut off, but turned Wayne budget woes linger, court, the assessments on the Dan Frost’s business represents, “It’s just what you deal with,” he back on after arrearages were Page 6 in many ways, the ups and downs of said. “But we were lucky, things property that generated the settled. $730,000 taxes that are unpaid for the local car dealership community. worked out for us.” Also: Track is appealing 2009- In the past With the bankruptcies and arbi- each of those years. 2010 tax assessments in a bid to 18 months, he DEALER DETAILS tration hearings of the past 18 They say the market value of have them reduced. Crain’s List and his busi- months behind them, the network the property Source: Huron Township, Wayne County, ness partners The list: Fates of metro Detroit car dealers is sta- has declined, Pinnacle ownership lost two Hum- of area franchises, bilizing, settling in to a new land- and they want Largest staffing companies, livered tax bill) we’ll pay it if we mer dealer- Page 24 scape of franchises and owners. the property’s get it.” Page 16 ships, opened Neighbors: Overall, 29 dealerships have assessment re- The unpaid taxes are just some a new Cadillac Buick lots too closed since the beginning of 2009 duced so a close? Page 24 of the thoroughbred horse dealership in the Detroit statistical area, ac- smaller tax bill track’s financial problems. and watched Coasting: Some cording to data from Detroit-based is due. This Just In dealers wind Pinnacle is $150,000 in arrears competing consulting firm Urban Science. “We have no down, Page 24 on its contract for township po- Chrysler LLC In addition to the reshuffling of outstanding lice protection, said township Omni Detroit to be closed dealers near franchises from closed dealers to bills that we Campbell Clerk Dawnette Bowers, and the his three Chrysler dealerships get open dealers, two new franchises know of. All of township-provided water service if sale falls through closed down. have been created. our property taxes are current. had been cut off to Pinnacle for a The Omni Detroit Hotel on the Now he’s faced with the escalat- Eight local dealers have been We’ve paid all the bills we’ve got- city’s riverfront will be sold ing costs of improving his remain- ten,” said track owner Jerry or closed by mid-October. ing Chrysler dealerships to new See Dealers, Page 24 Campbell. “(If there is an unde- See Pinnacle, Page 21 A potential buyer is lined up for the hotel, but if the sale does not close by Oct. 12, the hotel will be shut down, said Caryn Statman Kboudi, vice president of corporate Law school apps up, fewer graduate to legal jobs communications for the Irv- ing, Texas-based hotel chain. BY CHAD HALCOM mission at the region’s five largest law schools University of Detroit Mercy School of Law, the She would not name the CRAIN’S DETROIT BUSINESS this fall semester, to a combined 18,532 com- Auburn Hills campus of Thomas M. Cooley Law pared with 17,065 for fall 2009. School and Michigan State University College of Law. potential buyer or the price. Investment always comes with risk — and lo- However, if the hotel is sold, Deans and admis- That’s compared with 1,279 in fall 2009. cal universities have begun to warn the sions officers note The National Association for Law Placement Inc. Omni will no longer be the swelling ranks of prospective law school stu- ENROLLMENT operator. that student competi- in Washington reported last month that as dents that investing in a future legal career is tion has soared for The trends: A school-by- much as 11.7 percent of 2009 law graduates were See This Just In, Page 2 getting riskier. fewer job prospects, school look, Page 23 not employed nine months after graduation — Applications jumped almost 9 percent for ad- since the economy has the highest rate among recent grads since 1996. eroded the supply of new attorney positions. It’s the second consecutive year the employ- Anecdotal evidence also points to interest by ment rate has fallen. some law students in simply beefing up their business education résumés without any inten- tion of working at a law firm. Alternate paths Despite the application surge, the schools John Nussbaumer, associate dean of the themselves held enrollment almost constant. An Auburn Hills campus of Cooley, said the latest estimated 1,291 first-year students start classes data tends to support the idea that graduates

NEWSPAPER next week through Sept. 7 at the University of Michi- gan Law School, Wayne State University Law School, See Law schools, Page 23 20100823-NEWS--0002-NAT-CCI-CD_-- 8/20/2010 5:42 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS August 23, 2010

Festival in Rochester Hills to host fice not only expands our firm’s Inc. of East Brunswick, N.J. THIS JUST IN The way it was: 1986 its summer concert series. national footprint, specifically in The two-story, 73,000-square- — Chad Halcom the western portion of the coun- foot development is planned with ■ From Page 1 Throughout our 25th-anniversary try, but it adds depth, experience 10 movie screens and 16 bowling year, Crain’s will use this space and additional clients to our suc- lanes on 11 Mile Road east of The 108-room hotel, south of to look at interesting items from VC financing in state jumps 35% cessful, growing intellectual Main Street in Royal Oak. It will Jefferson Avenue near Stroh Riv- past issues. Venture-capital financing in property and gaming practice ar- also have a restaurant and bar. er Place, is considered a boutique Michigan was up 35 percent in eas, which is consistent with the The project has hit several hotel and has views of the Detroit A lot of the first seven months of the firm’s strategic growth plans,” roadblocks in the approval River and access to the River- “ year, according to the Ann Arbor- said Dickinson Wright CEO process and financing. Glantz Walk. people thought based Michigan Venture Capital As- William Burgess. said he personally raised $7 mil- — Daniel Duggan sociation. The deal marks Dickinson lion in private equity from in- typewriters Its members report doing fewer Wright’s fourth expansion out- vestors he knows. He secured a deals but for more money. As of side of Michigan in less than two $12 million construction loan Palace Sports seeks would be a dying market the end of July, there had been in- years, and brings its attorney from Charter One and will replace to clear up two tax liens vestments in 10 companies total- headcount to more than 260. The most of that with a long-term because of the computers, but ing $123 million, compared to in- deal did not create a new legal en- $9 million loan also from Charter Auburn Hills-based Palace vestments in 12 companies tity and there was no exchange of One. He also has secured a Sports & Entertainment Inc. expects the typewriter manufacturers totaling $91 million for the first cash for folding the firm’s assets $2.9 million loan from the U.S. to clear up shortly two liens for seven months last year. into Dickinson, the firm said. Small Business Administration. unpaid taxes at the Oakland are up at bat. — Tom Henderson — Chad Halcom Troy-based Ronnisch Construc- County Register of Deeds, total- ” tion will build the project, and In- ing more than $279,960. Ron Rutkowski, dianapolis-based Studio 3 is archi- The parent company of the De- The Typewriter Shop, Southgate Dickinson Wright expands into Emagine ready to build theater, tect. Southfield-based Signature troit Pistons, currently up for sale From a May 5, 1986, article about Associates is the broker on the by owner Karen Davidson, has two Las Vegas by absorbing firm bowling complex in Royal Oak a surge in electronic typewriter deal. pending liens filed by the Internal sales. The machines benefitted in Detroit-based Dickinson Wright Emagine Entertainment Inc. plans In addition to the Royal Oak Revenue Service on Feb. 3 for the short term from falling prices PLLC added its 10th office and to begin construction today on a deal, Emagine has signed a lease $17,692 and the Michigan Employ- and increased word-processing fifth outside Michigan last week long-delayed Royal Oak movie to take over the theater space pre- ment Security Commission on July ability, but computers won out by acquiring Las Vegas-based Gib- theater and boutique bowling al- viously used by Star-AMC near 20, for $262,268. almost completely in the end. son Lowry Burris LLP and adding ley project. Rochester and Auburn roads in Jeff Corey, director of public re- three shareholder members. Developer Paul Glantz said the Rochester Hills. Glantz said he lations for Palace Sports, said a Palace Sports was turning pay- The Gibson firm primarily $19 million project by his Troy- will invest $4 million in improve- representative of the company’s roll functions over to a new com- practices intellectual property based company added a boutique ments to the 1,900-seat theater accounting department visited pany. law, as well as some finance and bowling concept, hiring Amuse- and reopen it by Thanksgiving. the taxing agencies Friday and He contends the taxes were corporate law and commercial ment Entertainment Management — Daniel Duggan has been assured the matter will paid. litigation. Steven Gibson becomes be cleared up. Palace Sports owns the Pistons managing partner of Dickinson’s Corey said the company dis- and the Palace of Auburn Hills, Las Vegas office, and partners putes the liens and that they stem along with DTE Energy Music The- Jodi Donetta Lowry and J. Scott Bur- CORRECTION from an oversight in sending atre in Independence Township ris also join as members. Ⅲ A story on Page 3 of the July 26 edition mistakenly identified First proper reports to the state while and leases Meadow Brook Music “The addition of a Las Vegas of- Preferred Mortgage Co. in Port Huron as Preferred Mortgage Co.

When a big contract comes in, a MODERATOR: second-stage company can double in Dr. Lee Meadows, professor of management, size overnight. The most critical Walsh College element of growing fast may be in IN PARTNERSHIP WITH finance, human resources, information technology or marketing. Hear case Michelle Crumm, chief business officer, studies from executive-level peers who Adaptive Materials Inc. managed a specific area of the company through sudden growth. Bill Johnson, CFO, Xcend Group After you hear the panel, talk with PRESENT executives face-to-face in a fast-paced, peer-to-peer roundtable. Cycle through Tom Nixon, partner, the areas of the company where you Identity Marketing and Public Relations anticipate growth and ask questions Scaling Up that will help your company scale up. Jason Teshuba, CEO, Tuesday, Sept. 14 Mango Languages 7:30 a.m.– 10:30 a.m. MSU Management Education Center, Troy

To register please visit Registration: $35 each Fast www.regonline.com/septsecondstage Groups of 10 or more: $30 each* Call 313-446-0300 with questions At the door: $40 each and group reservations. *For group rates please call 313.446.0300. 20100823-NEWS--0003-NAT-CCI-CD_-- 8/20/2010 5:41 PM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 3

Finance Extra Crain’s nonprofit Riverfront site for executive compensation report: Incentive pay senior living project becomes more common, $30M development Page 11 promises jobs, full

range of services Company index BY SHERRI WELCH These organizations appear in this week’s Crain’s CRAIN’S DETROIT BUSINESS Detroit Business: A senior community in the works near De- Altarum ...... 11 troit’s east riverfront will not only keep the BAE Systems ...... 4 JOHN SOBCZAK residents living in their home neighborhoods JEFF JOHNSTON/CDB Blue Care Network of Michigan ...... 12 Architect Gail von Staden designed the colorful but will also bring new construction and The East Jefferson Neighborhood Project Blue Cross Blue Shield of Michigan ...... 12 headquarters of Quicken Loans Inc. in Detroit. health care jobs to the city. location and five nearby reference points: Brighton Mazda ...... 24 Presbyterian Villages of Michigan and United 1. University Prep Math and Science High Brinks Hofer Gilson & Lione ...... 23 Methodist Retirement Communities Inc. plan be- School (opening this fall) CB Richard Ellis ...... 24 fore the end of the year to begin work on the 2. Garden Court Condominiums Community Foundation for Southeast Michigan . . . 12 East Jefferson Neighborhood Project, a 3. Rattlesnake Club Community Legal Resources ...... 23 $30 million senior living project that will in- 4. UAW/GM Center for Human Resources Designing Deloitte Tax ...... 11 clude the city’s first affordable assisted living 5. Harbortown Shopping Center development. Detroit Pistons ...... 3 The project is Presbyterian Villages’ seventh Detroit Public Television ...... 12 in the city and its largest. It also marks the lat- complete will offer affordable assisted living, Detroit Tigers ...... 3 est example of 13 years of senior housing devel- independent living, residential nursing home Detroit Zoo ...... 12 her own opment in Detroit by the organization, totaling units, an adult day center, senior health and Dykema Gossett ...... 23 more than $67 million in investment. Located wellness services, recreation spaces and a Facility Matrix Group ...... 22 two blocks off the Detroit River, the develop- community café. Presbyterian Villages ex- General Dynamics Land Systems ...... 4 ment is the second of five pilot sites across the pects the development to provide for 750 resi- Greenpath ...... 12 state selected for affordable assisted living fund- dential and nonresidential seniors from sur- future ing by the Michigan State Housing Development Au- rounding neighborhoods. Harness Dickey & Pierce ...... 23 thority, following another built by Genesis Non- “There’s (an) extremely high concentration Health Alliance Plan ...... 12 profit Housing Corp. in Grand Rapids. of seniors in the east Detroit/East Jefferson Henry Ford Health System ...... 22 Laid-off architect blazes It is part of a larger senior community Les Stanford Chevrolet ...... 24 planned by Presbyterian Villages that when See Senior living, Page 22 Lumen Legal ...... 23 Michigan State University College of Law ...... 1 own trail, wins Quicken job Miller, Canfield, Paddock & Stone ...... 23 NSF International ...... 11 BY DANIEL DUGGAN Penske Automotive Group ...... 24 CRAIN’S DETROIT BUSINESS Physicians Weight Loss Centers ...... 18 Tigers’ payroll may get leaner Pinnacle Race Course ...... 1 In April 2009, Gail von Staden was laid off from the Detroit office of a national architec- Plante & Moran ...... 13 xx ture firm, unsure of her next move. Presbyterian Villages of Michigan ...... 3 Now working on her own, von Staden’s name Savings could help Ilitch in Pistons deal Red Level Networks ...... 4 is stamped on the design of the new headquar- Serra Buick ...... 24 BY BILL SHEA ters for Quicken Somerset Buick ...... 24 CRAIN’S DETROIT BUSINESS Loans Inc. in De- Suburban Cadillac Buick ...... 24 troit as its lead ar- The days of Detroit Tigers player payrolls north of $100 Sullivan, Cotter and Associates ...... 12 I’ve been chitect. “ million or $120 million may be over. Thomas M. Cooley Law School ...... 1 And it’s not her optimistic, and About $78 million in contracts and signing bonuses UHY Advisors ...... 24 only job. will be coming off the books, but owner Mike Ilitch is United Methodist Retirement Communities ...... 3 Von Staden is on expected to be able to spend far less than that on free optimism breeds University of Detroit Mercy School of Law ...... 1 pace to hit $500,000 agents and in trades to field a better team in 2011, base- success. in revenue for her ball insiders say. University of Michigan Law School ...... 1 ” 18-month-old CLOSER LOOK And that cost-effective improve- Urban Science ...... 1 Gail von Staden, Birmingham- ment on the field could come as Ilitch U.S. Army Tacom ...... 4 Von Staden Architects based practice, Key factors: A contemplates what could be a $400 Von Staden Architects ...... 3 taking on work in number of million acquisition of the Detroit Pis- Wayne County Circuit Court ...... 6 things will affect Detroit’s Comerica Tower as well as for Taylor- tons and the eventual construction of Wayne County Commission ...... 6 based Atlas Oil Co. and for the new headquarters the Detroit Tigers’ player a $350 million downtown arena. Wayne State University Law School ...... 1 being built for U.S. Farathane in Auburn Hills. payroll next This year’s payroll — for a team YMCA of Metropolitan Detroit ...... 11 “I’ve been optimistic, and optimism breeds season, that has collapsed in the second half success,” she said. Page 25 of the season because of injuries to Though in her case it’s more than just a posi- top players and poor play at times by Department index tive attitude. She was able to mine her book of almost everyone — is about $134 million with bonuses contacts and quickly start her own practice. factored in, according to Cot’s Baseball Contracts, a web- BANKRUPTCIES ...... 21 Having worked at the Southfield-based Rossetti site devoted to tracking Major League Baseball payrolls. BUSINESS DIARY ...... 15 architecture firm until 2004 and then the Detroit Without the bonuses, the payroll is reported at $122.8 CALENDAR ...... 19 office of San Francisco-based Gensler, von Staden million. CAREERWORKS ...... 18 has worked on projects such as the build-out for A number of expensive contracts are coming to an Team Detroit in Dearborn, Ernst & Young in Detroit end, including those of three players (Dontrelle Willis, THE ASSOCIATED PRESS CLASSIFIED ADS ...... 19 and MOCAD in Detroit. Nate Robertson and Adam Everett) who make a com- Minimum-salary players like right-fielder KEITH CRAIN...... 8 Brennan Boesch could save money next LETTERS...... 8 See Architect, Page 22 See Tigers, Page 25 year for Detroit Tigers owner Mike Ilitch. OPINION ...... 8 OTHER VOICES ...... 9 Crain’s events Check out our lists PEOPLE ...... 18 Expand your network — come to our next Download the expanded executive THIS WEEK @ RUMBLINGS ...... 26 event. See what’s coming at nonprofit compensation report, WWW.CRAINSDETROIT.COM crainsdetroit.com/events crainsdetroit.com/lists STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 26 20100823-NEWS--0004-NAT-CCI-CD_-- 8/20/2010 3:34 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS August 23, 2010

StageTwo Strategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly feature that analyzes a To sign up for the twice-monthly recent business decision by a second-stage company. e-newsletter, go to crainsdetroit.com/getemail. The For more second-stage coverage, go to Second Stage print section will appear in Crain’s on the crainsdetroit.com/secondstage. third Monday of each month. RED LEVEL NETWORKS LLC Location: Novi service, it made us much less months at a cost of more than Description: An IT services com- competitive. We saw a pattern $100,000. pany that designs, installs and emerging that wasn’t appealing.” It was also hard to let an out- provides ongoing network ser- Solution: King hired South side architect take control, King vices to clients such as Coffee Lyon-based independent software said. Beanery, Belle Tire, RL Polk, Buffalo architect Steven Mayer to help “But, as a result, our staff is bet- Wild Wings and the Saginaw and create a viable ter trained and able to consult on Lapeer County intermediate cloud-based more complex networks.” school districts. system that of- Expert opinion: Kayo Ramirez, CEO: David King fered shared technology business consultant Founded: 2004 software and infor the Michigan Small Business & Employees: 20 formation on- Technology Development Center, Revenue: $2 million in 2009, with line. said cloud hosting is the future of $2.5 million projected for 2010. The company business IT. Problem to be solved: Last year, developed a “This phone in my hand is go- Red Level Networks didn’t offer subsidiary, MI- ing to be the computer we’re all cloud hosting — offsite hosting Cloud.com, using and everything else will be King services — to its clients. However, over the course on the cloud,” he said. “Compa- clients began to demand the op- of six months in 2009 and nies just don’t have the capital for tion as conglomerates like Rack- launched the service in Decem- the technology, and outsourcing space US Inc. began to boom. ber. the service makes sense.” “The customers were asking Red Level also procured secure Red Level’s choice to outsource about these solutions that we just server space for its cloud hosting development and server space couldn’t offer at the time,” said at Southfield-based data center In- was the right move for a small David King, CEO. “Companies no ternet 123 Inc. company. longer want to purchase IT infra- “Their data center allows us to “It’s smart to outsource things structure at their workplace.” offer the service to our clients that aren’t your core competen- Three clients left Red Level be- without having to take on the in- cies,” he said. “Outsourcing at a cause it didn’t offer a cloud-based frastructure costs ourselves,” lower cost is beneficial, but on the service. King said. flip side, you lose a little bit of King knew he had to adjust the Since December, Red Level has control.” company’s offerings, but his team added 10 clients to its cloud-host- Companies looking to move of software engineers were not ing service, which covers the new into cloud hosting should be con- versed in cloud computing. costs as King looks to expand. scious of security risks and “The technology had emerged Risks and considerations: Devel- choose vendors that are known to and we weren’t in front of it at the oping the hardware and software keep data safe. time,” he said. “With this type of for the service took more than six — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Welsh, entrepreneurship editor at Crain’s Detroit Business, at [email protected].

Uncertainty clouds future of defense contracts BY CHAD HALCOM through the U.S. Army Tacom Life Cy- tracts that Southeast Michigan CRAIN’S DETROIT BUSINESS cle Management Command in War- companies often receive to sustain ren should decline in the new fis- vehicle fleets and other damaged The crystal ball is clouding in a cal year, but Executive Director or aging equipment. swirl of program delays and pro- Harry Hallock of the Tacom Con- Local contractors had expected jected cuts as local companies try tracting Center said it’s too early to know about their future late to foresee a future in the defense to tell by how much. Even this next month, when Tacom was ex- industry. year’s spending isn’t fully allocat- pected to award three technology Defense Secretary Robert Gates ed. development bids for the Ground said earlier this month he hopes to As of last week, Tacom had Combat Infantry Fighting Vehicle cut spending on outside contrac- awarded just over $16 billion in program, valued at more than Jazz up this year’s tors by 10 percent a year for three contracts, year to date. Hallock ex- $7 billion in development funding years, eliminate a major military pects that to accelerate to $22 bil- through 2015 and billions more in command and save $100 billion in lion by Sept. 30. That’s compared production. holiday party! spending over the next five years. with more than $25 billion last Gary Slack, president of U.S. But the cuts so far are largely in year and $30 billion in fiscal 2008. combat systems for BAE Systems Inc., bureaucracy and services, suggest- The contracting center began said the company recently restruc- Our cultural places offer creative ing the Pentagon may try to shore gathering information last week to tured some departments to align spaces for your next event. up its money to buy weapons and create a projection on spending in with Gates’ call for efficiency, and equipment. fiscal 2011. Hallock said it’s too may consolidate supply chains as it Call today to discover (and help support) Local contractors might get early to gauge that now, except deals with a leaner budget. our region’s treasured cultural gems more information once the De- that it should fall again for the The company in July laid off 40 through our one-stop service. fense Department publishes its third straight year. engineers in Sterling Heights out next Program Objective Memoran- “I don’t see anything yet to sug- of U.S. combat systems and should dum, an outlook on budget priori- gest that (downward) trend is cut more local employees by year’s the ties over the next several years. changing yet,” he said. end in a separate division. cultural But Mike Cannon, senior vice Don Kotchman, president since BAE estimates its land and arma- concierge president of ground combat sys- July of the Michigan chapter of the ments division, including U.S. com- tems at General Dynamics Land Sys- National Defense Industrial Associa- bat systems, generates $48.6 million a program of the cultural alliance tems in Sterling Heights, told at- of southeastern michigan, tion, said he expects future budgets in Michigan payroll and more than a 501(c)(3) organization tendees at the annual Ground to show a fall-off in supplementals, $673 million in supply chain con- Vehicle Systems Engineering and or overseas contingency funds, tracts and relationships with 170 Technology Symposium last week which add more than $130 billion Michigan companies. Find out more! at the Hyatt Regency Dearborn that to the Defense Department’s base The NDIA Michigan reports a the company is getting no word on budget, for the wars in Iraq and total 2,660 members this year, com- www.theculturalconcierge.org when the next memorandum is Afghanistan. pared with about 2,100 last year. 248.766.5599 [email protected] forthcoming. Accompanying that will be a de- Chad Halcom: (313) 446-6796, Locally, contract awards cline in repair/maintenance con- [email protected] DBpageAD.qxd 6/1/2010 3:01 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS August 23, 2010 As Wayne County’s budget woes percolate, more trouble predicted BY NANCY KAFFER ed at $266 million by the end of fis- budget,” Ficano said. lanta, rebutted Ficano’s depiction But the staff of 130 he says the CRAIN’S DETROIT BUSINESS cal 2009-10 — saying his hands are Ficano said the courts haven’t of the courts. county proposes isn’t realistic for a largely tied when it comes to cut- adopted any of the county’s cost “I think some misinformation busy circuit court system with 63 As Wayne County continues to ting or controlling many costs, es- savings suggestions, like combin- has been put out as though the judges. grapple with a multimillion dollar pecially expens- ing human resources and IT depart- court has not made any adjust- “In our opinion, the cuts are ille- accumulated budget deficit, a es in other ments, or pay cuts, which most oth- ments or … any cuts, and that’s just gal because they deny the court court battle over cuts is ongoing — elected officials’ er county workers have accepted. untrue,” he said. the reasonable and necessary staff and the county’s auditor general is departments. “It’s like your next door neigh- In the 2003-04 budget year, the to meet (its) constitutional man- warning of trouble ahead. Ficano points bor has your credit card, and court had more than 600 employ- dates,” Dillard said. Willie Mayo, the county’s legisla- to disputes with keeps racking up costs, and you ees, Dillard said. In the current fis- Ficano said he’s preparing to tive auditor general, said the coun- former county ask them to stop and they just ig- cal year, the courts have just 285 take “draconian” steps. ty has been deficit spending since Sheriff Warren nore you,” he said. employees. “We think that we can eliminate fiscal 2003, using short-term bor- Evans and the The courts’ accumulated deficit, “We’ve done cuts amounting to paying for health care for judges,” rowing to fill budget gaps without Wayne County Cir- Wayne County CFO Carla Sledge $25 million,” he said. he said. “We’re on the cusp of that taking long-term action to address cuit Court. The said, could reach $90 million by the An apparent budget increase for … (also) we’re thinking … we’ll take Ficano the county’s structural deficit. courts and coun- end of fiscal 2010. the courts stems from restraining their $75 million, set it up complete- But County Executive Robert Fi- ty are embroiled in a lawsuit being Godfrey Dillard, outside counsel orders preventing staff cuts issued ly in a separate account that you cano downplays his administra- litigated in St. Clair County. to the courts and an attorney in by the St. Clair County Court, Dil- draw off of all year, but once the $75 tion’s role in the deficit — project- “The courts are $24 million over private practice in Detroit and At- lard said. million is up, they’re going to have to hold us in contempt to get more.” Dillard said he expects the lawsuit to wrap up by mid-September. Ficano and Sledge said a change in the way the state handles match- ing grants and a deficit in the sheriff’s department account for most of the remainder of the deficit. In 2009, Evans, who later left the position, successfully sued to avoid layoffs, resulting in what Sledge says is a $30 million deficit in that department. Ficano said he’s tried to push legislation in Lansing that would stop county officials from suing to forestall budget cuts. Sledge said court costs are paid by the county general fund budget, projected at $581 million in fiscal 2010-11. The county’s total proposed budget for fiscal 2011 is $2.1 billion, down 1.7 percent from fiscal 2010. Most recently, the executive proposed suspension of a “13th check” to county retirees, a move voted down by the county commission, has suggested the CFO be given control of implementing deficit spending plans in recalcitrant departments, and has proposed a change in accounting from full ac- crual to a modified cash basis. Mayo said changing the county’s accounting standard would primarily save money on paper. Wayne County Commission Chair Edward Boike opposes the latter two measures, calling the first a “power grab” that would place too much power in the administration’s hands. Ficano said he’s reduced the county’s workforce by more than 1,600 employees and has consoli- dated departments since he’s been in office, but that other elected officials haven’t accepted that property taxes will continue to decline. In recent years, the county has relied on short-term borrowing, but Ficano said the situation isn’t out of hand. The county issued $60 million in short-term notes in the last fiscal year, which Sledge said has been paid off, and $100 million in short- term notes in the current fiscal year, a debt she said will be paid in September. Mayo said the county must adapt to its financial means or con- Learn invaluable business basics with Business 360. tinue to rely on short-term borrowing to float its budget. )TSLIKEGETTINGAMINI -"!/NE ORTWO SESSIONCERTIlCATEWORKSHOPSINCLUDE “You can blame (the shortfalls) !CCOUNTINGFOR.ON !CCOUNTANTS0ROBLEM3OLVING-ARKETING-ANAGEMENT on the economy, but we’ve been in the economic doldrums for quite %CONOMICS&INANCE"USINESS,AW!NDMORE.OHOMEWORKOREXAMS some time,” he said. 3ESSIONSSTART/CT2EGISTERBY3EPTANDRECEIVEANEXECUTIVEPORTFOLIO “You’ve got some other counties that appear to be addressing it, and planning for it, like Macomb and Oakland. What makes us any different?” Nancy Kaffer: (313) 446-0412, [email protected] DBpageAD.qxd 8/17/2010 4:26 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS August 23, 2010 OPINION Nonprofit pay data interesting, valuable his week’s issue includes our biennial report on compensation for executives who run leading nonprofit or- T ganizations in our region. Why does Crain’s Detroit Business publish these salaries? For the same reason we publish the salaries of top executives at publicly traded companies. There’s a public interest. Publicly traded companies sell shares to investors and are regulated and required to make public great amounts of data and information about their operations. Likewise, nonprofits must offer transparency about how they operate in exchange for the tax-exempt status granted to them by the Internal Rev- enue Service. This transparency includes the filing an IRS Form 990 for public review. But let’s be clear: Donors sometimes are shocked at six-fig- ure salaries. Yet many of these CEOs are running complicated organizations. The skill sets of successful CEOs of major nonprofits — from highly complicated nonprofit hospital systems to major arts and cultural organizations — are in great demand. Boards must offer competitive compensation packages. Increasingly, compensation mirrors for-profit corporations, with top executives receiving incentives for leading organizations to hit performance benchmarks. (See Sherri Welch’s story on Page 11.) LETTERS Meanwhile, some fringe perks, like club memberships, are declining. And in 2009, many nonprofit execs took pay cuts or enjoyed small increases of 2 percent to 3 percent. Health reform limits choices So how much is too much compensation for a nonprofit CEO? Charity Navigator, a nonprofit created by philanthropists Editor: to health insurance. Take a look at Crain’s Detroit Business in 2001 to help donors find unbiased ratings of nonprofit orga- Thank you for your comprehen- Massachusetts, where since enact- welcomes letters to the editor. nizations, has some useful data. sive description of the direction ing reforms much like the ones put All letters will be considered for In general, compensation varies by geographic region and health reform is moving so far as publication, provided they are through by the federal govern- by the nature of the nonprofit. College presidents and leaders brokers are concerned (“Un- signed and do not defame ment the wait to see an internist healthy time for insurance bro- has gone from days to weeks. of educational institutions earn far more than human service individuals or organizations. kers,” Aug. 2). As someone who Letters may be edited for length Jerry Cohen executives. Arts and culture CEOs earn more than public ben- Specialist, life insurance and health insurance, has provided information and and clarity. efit or religious nonprofits. It may not seem fair, but that’s guidance to small businesses here group benefits Write: Editor, Crain’s Detroit NYInsuranceWithService.com in New York since 1986, I can only how the market for this talent seems to set the compensation. Business, 1155 Gratiot Ave., Salaries and incentives also are higher for organizations say that the new federal health re- Detroit, MI 48207-2997. form regulations are a thinly dis- with larger budgets. Charity Navigator found, for example, E-mail: [email protected] Extend rail to Pontiac guised move by the government to Editor: that nonprofits with budgets between $200 million and $500 bring about a single-payer nation- The Woodward light-rail system million paid their CEOs a median salary of $429,754 in 2008 — al health insurance system. sell — one sponsored by AARP and should continue beyond Eight Mile, and that’s just the salary. What purpose or need will there one sponsored by a company at least to Pontiac. Light rail is a ne- Donors can find the data valuable. be for private health insurance called United American. The UA cessity, not a luxury. Many people once brokers are no longer around plan is more expensive than the But the directors on boards of nonprofit organizations can’t drive or don’t own a car. to service or inform? As citizens, we AARP plan, so there is little justifi- What metropolitan area in Eu- must also ensure that their compensation policies are not cre- will be left with a one-size-fits-all cation for buying it since the bene- rope does not have a dedicated rail ated in vacuums. plan or perhaps a few plans like the fits are standardized per the feder- system? In fact, the IRS encourages directors of nonprofit boards to Medicare supplements correspond- al government. So we are left with Many visitors to this area are collect data from similar nonprofits to help benchmark coming to a specific grade of benefit. one company, AARP (coverage astounded at the lack of public Here in the New York metro provided by United Healthcare ), pensation packages. This compensation report can serve as a transportation. area there are really only two take it or leave it. Richard Rosenbaum useful start. Medicare supplement plans that That is what is going to happen Bloomfield Hills

KEITH CRAIN: Detroit takes a giant leap for mankind Last week, Mayor Dave Bing an- At its peak, Detroit solid data and input the first to own up to the problem stronger or new neighborhoods, nounced the beginning of what is had a population of from many interested and try to face this tough issue. we could be fashioning a city that sure to be a long and arduous about 2 million people. parties. The decisions Although it’s going to be a long is unique in our country — even process for the city of Detroit. Today, some people that result from the and difficult journey, it’s impor- the world. Thus begins the study of land think the population is study and input will be tant for Detroit to do this if there is It has to be an urban planner’s use for the city and the very real fewer than 800,000. difficult. But Mayor any hope for the city to survive dream to start over or at least be possibilities that there could be There is neither the Bing should be applaud- and even prosper. Although the able to think in terms of a sheet of some dramatic changes in the lay- overall density nor the ed for beginning the simple answer is that there will be paper that’s half blank. out of the city and for its citizens. efficiency needed to run journey that could be a efforts to turn some parts of De- It is far more dramatic and de- It would seem to be premature to a city that covers nearly template for many oth- troit into parks and even urban serves more national attention suggest the outcome of a study that 140 square miles. er cities in this nation. farms, the actual possibilities are than it is receiving. has just begun. But one thing We need to rethink Detroit is certainly quite limitless. As time goes on, there will prob- seems certain: The study’s how we use the land and not the only city in the Whether it’s farms and more ably be a lot of screaming, but it’s a premise is that this city is too big where people should nation that is facing the rural uses, industrial parks or great, bold idea that needs lots of for its relatively small population. live. The planning is starting with same dilemma. But it seems to be larger population clusters in support. 20100823-NEWS--0009-NAT-CCI-CD_-- 8/20/2010 11:45 AM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Michigan needs electric-rate competition

In late 2008, the Legisla- other necessity of life — major economic-development pro- Now” (www.competition4mi.com), A spokesman for Consumers En- ture passed and Gov. Jen- has undergone such mas- jects have bypassed Michigan due a coalition of customers, trade asso- ergy, quoted recently in a newspa- nifer Granholm signed an sive price hikes in just 22 to our state’s high cost of energy. ciations, and economic develop- per article, stated that the status energy package that, de- months? In stark contrast: While the damage done to Michi- ment leaders whose mission is to quo — the state’s largest utilities spite introducing a re- During this same period, gan’s economy has been signifi- promote the right for Michigan con- having monopoly control — pro- newable portfolio stan- states that allow electric cant, it is not irreversible. sumers to have real energy choices vides Consumers Energy with dard, has been a proven competition have seen That’s why I have introduced when selecting their electricity “peace of mind.” disaster for Michigan their prices fall. House Bill 6127. This legislation provider. While I’m sure the shareholders businesses and other elec- Essentially, Michigan will raise the cap on electric choice States with competitive markets at Michigan’s two utilities appreci- tricity consumers. legislatively gave Con- from the current 10 percent to 25 have been able to take advantage ate the sentiments, I don’t. I don’t The energy package vir- Roy Schmidt sumers and DTE a blank percent, which will help lower of wholesale energy prices that believe the peace of mind of one tually eliminated all competition check — and they have painted the prices, lead to economic develop- have dropped by 50 percent to 60 utility company should trump the in Michigan’s retail electricity town with it. ment, job creation and job reten- percent and are the nation’s peace of mind or be balanced on market by allowing only 10 per- And tragically for Michigan’s al- tion. Competition will also tame hotbeds for the alternative and re- the back of every hard-working, cent of DTE Energy and Con- ready-suffering economy, the bad the price-hiking beast at Michi- newable energy sectors. In 2009, 80 rate-paying customer in Michigan. sumers Energy customers the abil- news doesn’t end there. Because gan’s two largest utilities. percent of new wind farm develop- Roy Schmidt is a Democratic ity to shop for a lower electric rate competitive electric companies Similarly, I am supporting “Elec- ment occurred in states with com- state representative from Grand offered by a competitor. have been shut out of Michigan, tric Competition for Michigan petitive markets. Rapids. In the 22 months since the bill’s passage, which allows for automat- ic interim rate increases, electric rates have skyrocketed. For Con- sumers Energy customers, rates have spiked from 20 percent for the average residential customer to the upper 20s to upper 30s percentages for businesses. What other industry — what

TALK ON THE WEB Re: Quicken Loans unwraps HQ As a new Quicken employee, I am super-stoked about the move to the D. Hopefully, other businesses will follow suit and consolidate their suburban offices downtown. Downtown Detroit is definitely the place to be. MaximumLantern Congratulations to Dan Gilbert and the Quicken team on your completed downtown headquarters. As an avid fan and collector of original Detroit art, I am absolute- ly looking forward to visiting and touring this new location. I can’t wait to see the graffiti-painted floors. F. Masha Olaniran

Re: $5.8M solar project planned at Ford’s assembly plant in Wayne Thirty-six years to get a return on the money. This must be a government project. W. Kohler Ultimately, any new subsidized technology (including alternative energy) must be self-sustaining. Government funding is great if it helps pave the way for private investment — and private investment will only follow if the technology can be profitably commercialized. A 36-year payback is not profitable. R. Brodzik

Re: Fusion, chamber discuss future I applaud both Mr. Baruah’s recognition of the importance of contributions made by young professionals and the dedication of Fusion leadership to see that a proper home is found for the organization to maximize its benefit to its members and the community. Aaron D. Alston

Re: Employers face tax tied to UI debt Michigan businesses already paid a penalty for the state borrowing so much and not paying it back for three years. Last year’s Form 940 included an extra 0.3 percent on wages paid in Michigan. jg48386 DBpageAD.qxd 8/12/2010 2:49 PM Page 1

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August 23, 2010 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Extra TAX FORM REDUX Sherri Begin Welch writes about Updated 990 form requires nonprofits and more details on compensation, services. Page 13 Call (313) 446-1694 or write [email protected] Nonprofit compensation report

Sherri Begin Welch Health reform creates new caps Federal health care reform legislation could impact compensation for the top earners at nonprofit and A for-profit health insurance companies b g in the coming years. The bills include new caps on the tax deduction that health insurers can take for compensation they pay their top earners. That includes directors, officers, employees or independent contractors earning more than $500,000 annually for tax years beginning in 2013, said Lori something extra Boyce, director of Michigan health care and nonprofit tax services at Deloitte Tax LLP. The cap is effective for compensation paid in tax years after 2012 — but for services provided Incentive pay more common for nonprofit execs after 2009, she said. Because of the new provision, “organizations might think to pay the BY SHERRI WELCH entire compensation earned prior to CRAIN’S DETROIT BUSINESS TOP-EARNING NONPROFIT CEOS 2013, but there could be other SF International President and CEO Here’s what top-paid executives who received incentive pay made in 2008 in seven ramifications under other IRS code Kevan Lawlor doubled his annual nonprofit categories, listed in order of highest total compensation (which includes sections that could cause a penalty things other than base and incentive pay). More top earners are listed on Page 14: N compensation by hitting perfor- for accelerating the payment of deferred compensation,” Boyce said. mance-based benchmarks for the Health care The new deduction caps are similar public safety standard-setting and Kenneth Matzick, president and CEO*, William Beaumont Hospitals testing nonprofit. to those that limit the deduction for Base pay $860,657; incentive pay $311,150; total compensation compensation for executives at Lawlor, who advanced from CFO to $7.78 million publicly traded companies, or CEO in 2003, earned $528,850 — half of $1 million for the CEO and the next his $1.06 million in total compensa- Nontraditional/other tion — in incentive pay. top four executives, Boyce said. Matzick Kevan Lawlor, president and CEO, NSF International For nonprofit health insurance That was for 2008, the most recent Base pay $320,133; incentive pay $528,850; total compensation companies, the new cap might not be year for which figures are available $1.06 million as much of a concern because they’re from IRS forms. Lawlor’s base pay not deducting compensation on their was $320,133. Other types of compen- Grant-making foundations returns as for-profits do to reduce sation brought him to the higher total Kevin Seitz, president, Blue Cross Blue Shield of Michigan taxable income — unless they have compensation number. Foundation unrelated business activities to which “Since NSF competes in the same Base pay $447,562; incentive pay $399,296; total compensation that employee compensation can be $1.03 million talent pool with for-profits for execu- Lawlor allocated, Boyce said. tives (not only in Michigan, but na- Arts and culture Another new requirement could have tionally and globally), we offer a com- a bigger impact on compensation at parable compensation and benefits to Graham Beal, president and CEO, Detroit Institute of Arts nonprofit health insurers, she said. The attract and retain top talent,” said Base pay $330,000; incentive pay $40,000; total compensation bills include new medical-loss ratios, NSF Senior Communications Manag- $550,937 which lay out the percentages of er Greta Houlahan in an e-mail. Social services premium revenue that nonprofit and for- Incentive compensation — increas- profit insurance companies must spend Michael Brennan, president and CEO, United Way for ingly making its way into the pack- on medical costs. Seitz Southeastern Michigan ages of top nonprofit CEOs — made For nonprofit health insurers, the Base pay $343,562; incentive pay $60,000; total compensation $463,261 up a third or more of the total com- ratio is higher, with requirements to pensation of a handful of local non- spend 90 percent of premium revenue Business organizations on medical costs, leaving only profit executives in 2008. Beyond Mark Tomlinson, executive director, Society of Manufacturing Engineers 10 percent to cover administrative health care, a few executives in the Base pay $272,031; incentive pay $77,866; total compensation $419,634 expenses including compensation, arts and culture and foundation seg- Boyce said. ments began earning incentive pay Fundraising organizations For-profit systems will have that year, too. Melinda Conway Callahan, president, Presbyterian Villages of Michigan 15 percent to 20 percent of premium NSF’s management has driven sig- Foundation revenue available to cover nificant revenue growth over the past Base pay $136,293; incentive pay $15,276; total compensation $183,839 administrative costs for individual and several years, enabling the nonprofit Data from 2008 IRS 990 forms. Visit www.crainsdetroit.com/lists to buy a report on more than group plans, respectively, she said. to expand the reach of its global pub- 120 Michigan nonprofits for $59. Deloitte’s health insurance clients lic health mission through new labo- * Retired in May aren’t overly concerned now, she said, ratories and programs in food safety, as they have bigger fish to fry, making drinking water safety, toy testing and $439,749, up from incentive pay that Maier said. other reform-induced operational nutritional supplement certification, comprised 27 percent of his total com- “It was a conscious decision by

changes. she said. pensation in 2006, the last year the board to go to that, based on best ISTOCKPHOTO.COM “The people I’ve talked to in the “It is becoming more prevalent — Crain’s reviewed tax forms of top- practices,” he said. industry did not feel those and appropriate — for executives to paid local nonprofit executives. The board believes the incentive percentages would be difficult to place a percentage of their potential The Detroit YMCA board of direc- compensation and related targets achieve,” she said. total compensation at risk through tors began including incentive com- align management performance But it isn’t yet clear whether shifts the use of incentive compensation,” pensation in Thebault’s compensa- with the goals of the organization to electronic medical records, Houlahan said. tion package in 2005, said Dan Maier, set by the board, Maier said. standardization of claims and other Reid Thebault, president and CEO executive vice president of associa- Similarly, Ann Arbor-based Al- technology changes would be of the YMCA of Metropolitan Detroit, had tion advancement. tarum CEO Lincoln Smith received considered medical costs or would $142,870 in bonus or incentive com- Roughly a third of his compensa- $22,244 in incentive compensa- have to come out of administrative pensation in 2008. That was 32.5 per- tion is now categorized that way, and budgets, Boyce said. cent of his total compensation of that continued in 2009 and this year, See Extra, Page 12 20100823-NEWS--0012-NAT-CCI-CD_-- 8/20/2010 12:10 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS August 23, 2010 Finance Extra Extra: Rewards for execs ■ From Page 11 tion, part of total compensation of ecutives who received incentive $348,858. compensation in 2008 but not in And Detroit-based Blue Cross Blue 2006 included Community Founda- Shield of Michigan paid President tion for Southeast Michigan Presi- and CEO Daniel Loepp $727,575 in dent Mariam Noland, Detroit Public incentive compensation in 2008 — Television CEO Rich Homberg, De- 40 percent of his total compensation troit Zoo Director and CEO Ron Ka- of just under $1.8 million. gan and former Health Alliance Plan Incentive pay also accounted for CEO Francine Parker. 36 percent of Blue Care Network of Nonprofits with less money to Michigan President and CEO use for raises across the board Jeanne Carlson’s $916,215 in total “are paying you not only for the compensation in 2008. work you are doing, but also to the Carlson had reported bonus/in- (extent) that you are increasing centive compensation of $330,309, the charitable mission, (with) in- plus base compensation of centive pay,” Gilardi said. It’s part $366,677. of a larger trend of more-scruti- The high level of incentive com- nized compensation packages. pensation for Loepp and Carlson Tom Pavlik, managing principal was a function of their promotions of Detroit-based compensation to CEO and not a compensation consulting firm Sullivan, Cotter and structure shift, said Helen Stojic, Associates Inc., said that in 2008 corporate affairs director for the and beyond he has also seen some Blues, in an email. decline in some fringe benefits, “Mr. Loepp and Ms. Carlson as- such as club memberships. That’s sumed larger roles and responsi- in part because of increased bilities as they became CEOs,” awareness of the IRS Intermediate serving their first full year in Sanctions penalties for excessive those positions in 2007. compensation. “These promotional changes Senior staff at many high-profile increased salaries and incentive nonprofits in 2009 gave back 5 per- opportunities for these individu- cent to 10 percent of their compen- als, and their annual incentive sation, said Paul Creasy, partner payouts reflected these changes at Avon, Ohio-based Organizational fully in 2008,” since 2008 incentive Consulting Group LLC. payments reflect 2007 perfor- “And we don’t know if that’s go- mance, Stojic said. ing to be made up.” Health care executives contin- Since the most-recent reporting, ued to get bonuses in 2008, but some organizations have trimmed boards at those nonprofits have be- total compensation packages. For gun broadening the performance example, Loepp has since taken targets to include not only finan- voluntary pay concessions. cial metrics but also measurable Last fall, in response to the eco- functions like quality of care, said nomic crash, Loepp voluntarily Jennifer Gilardi, senior manager reduced his bonus paid in 2009 to at Deloitte Tax LLP. $486,000. Locally, the top 10 highest paid Jane McNamara, president and nonprofit health care CEOs earned CEO of nonprofit credit counseling incentive pay in 2008. Over the agency Greenpath Inc., voluntarily past year or two, nonprofits out- decreased her incentive pay in 2008 side health care — which has used by 50 percent to $78,709. In 2006, she bonuses as part of its executive got $156,242 in incentive pay. compensation since at least 2004 — The YMCA’s Thebault and all se- are also looking at incentive pay, nior management at the nonprofit Gilardi said. voluntarily took a 15 percent roll- Of the 50 largest nonprofit orga- back in base pay and a 33 percent nizations researched for this re- cut in their retirement contribu- port, more than half used incen- tions starting July 1, 2009. tive pay. Sherri Welch: (313) 446-1694, Examples of local nonprofit ex- [email protected]

Active Member 20100823-NEWS--0013-NAT-CCI-CD_-- 8/20/2010 11:46 AM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra Updated tax form requires more details on compensation

BY SHERRI WELCH separate schedule J. tions of the new forms, there will Some nonprofits disclose that on some level of explanation about CRAIN’S DETROIT BUSINESS Additionally, the new forms re- still be some ambiguity, said the new schedule O, where they “other compensation.” quire that nonprofits report com- Lynne Huismann, tax partner at can list anything they feel is rele- But according to the chart, it The long-awaited 990 tax forms pensation for the most recently Plante & Moran PLLC in Southfield. vant, but there’s no requirement to could include 30 types of income, for nonprofits muddied the picture completed calendar year. For example, the forms ask if the do so, Huismann said. such as severance or change-of-con- of compensation trends in 2008. Because of the lack of comparable nonprofit provided certain bene- Nonprofits also are not required trol payments, third-party sick pay, All nonprofits that file a 990 data across the board for the top- fits to its employees, such as hous- to explain numbers they report in vacation/sick leave cashed out, should use a new form for 2009, and paid nonprofit executives in South- ing allowances, discretionary the “other compensation” column, stock options when they’re exer- report compensation numbers on a east Michigan, Crain’s Detroit Busi- spending accounts, personal ser- Huismann pointed out, but they do cised, stock awards, contributions standardized, calendar-year basis. ness did not attempt to calculate the vices, health or social club dues or have to have documents to explain to 401(k) plans, taxable scholarships The forms will present a more average base and total pay increas- first-class travel. in case the IRS comes calling. and fellowship grants, adoption as- transparent view of nonprofit ex- es or decreases for 2008, the most re- Nonprofits are required to note Other experts pointed to a two- sistance, other taxable health bene- ecutive compensation for 2009 and cent year available for comparing if they provide those benefits to page chart included in the form’s fits and taxable life, disability or beyond, experts said. reported compensation data from employees, but the IRS doesn’t re- instructions on where to report long-term care insurance. Foundations that file the 990-Pri- nonprofit tax returns. quire a breakout of the dollar val- roughly 65 different types of com- Sherri Welch: (313) 446-1694, vate Foundation form can still re- And even with the good inten- ue for each employee. pensation. They said it provides [email protected] port fiscal-year compensation data, as the Internal Revenue Service did not update that form or change the time frame for reporting compensation numbers. “With the new 990s, you’re actually getting a lot more informa- 3D3@G 0CA7<3AA 6/A / tion,” said Lori Boyce, director of AB=@GB3::CAG=C@A Michigan health care and nonprof- µ=c` ZWbbZS ZO\RaQO^W\U PcaW\Saa Wa\¸b a] ZWbbZS O\g[]`S it tax services at Deloitte Tax L.L.P. “I think organizations, particu- EVObabO`bSR]cbOabe]UcgaeWbVO^WQYc^^ZO\bW\UaV`cPa larly those that don’t have exter- Wa\]eO!^Sà]\S\bS`^`WaSESSdS\aSZZZO\RaQO^S nal tax advisers helping to fill (the 990) out, (now) have a better idea of aQcZ^bc`Sa4]à][S`SOa]\bVSU`c[^gUOÙ]gZS]\SWa what should be included.” OV]baSZZS`<]eeS\SSR[]`SPOQYV]SaO\RT]`YZWTba But there is a challenge in com- /\ROeOgb][OYSWbOZZVO^^S\¶ paring 2008 data — the latest available — to what came before it on the old 990 tax forms. “It’s going to be a little bit difficult, with the change in the (990) form, to draw some conclusions from one year to the next until everyone is on the same form” and there’s comparable data, said Jen- nifer Gilardi, senior manager at Deloitte Tax. Among other things, the new 990s, which mark the first update of the form in about 30 years, require nonprofits to break out more of the reported compensation for top executives and employees making $150,000 or more on the

TIME RUNNING OUT TO APPLY FOR BEST-MANAGED NONPROFIT Applications are due Aug. 30 for Crain’s Best-Managed Nonprofit Contest, which will honor collaborations, partnerships and mergers among area nonprofits. Those relationships could include sharing resources, sharing facilities, consolidations or joint ventures. Documentation of results is important. Applicants must be a 501(c)(3) with headquarters in Wayne, Washtenaw, Oakland, Macomb or Livingston counties.Previous first- place winners are not eligible; neither are hospitals, HMOs, medical clinics, business and professional organizations, /b 4WTbV BVW`R 0O\Y SdS`g PcaW\Saa PO\YW\U `SZObW]\aVW^ PSUW\a schools, churches or foundations. eWbV O Q]\dSàObW]\ EVS`S g]c R] []ab ]T bVS bOZYW\U O\R eS Applications must include copies of audited financial statements ZWabS\BVS\]\QSeSc\RSàbO\Rg]c`PcaW\SaaO\Rg]c`\SSRa and IRS Form 990. eS USb b] e]`Y /\R Oa eS PcWZR g]c` ¿\O\QWOZ a]ZcbW]\a eS Winners will be profiled in the Nov. 29 issue, receive a “best-managed” [OYSac`Sb]YSS^g]cW\d]ZdSR0SQOcaSacQQSaaW\PcaW\SaaWa logo from Crain’s for use in Ò`SZgOQVWSdSROZ]\S promotions, and will be recognized at the Crain’s Newsmaker of the Year lunch next year. :Sb¸aVOdSOQ]\dSàObW]\Ab]^W\g]c`Z]QOZ For an application form, e-mail YahNica Crawford at 4WTbVBVW`R0O\YQOZZcaOb&%%&" '%]`dWaWb#!Q][ [email protected] or visit www.crainsdetroit.com/nonprofit contest. For information, e-mail 4WTbVBVW`R0O\Y;S[PS`4271 Executive Editor Cindy Goodaker at [email protected] or call (313) 446-0460. 20100823-NEWS--0014-NAT-CCI-CD_-- 8/20/2010 12:35 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS August 23, 2010 Finance Extra

TOP-PAID NONPROFIT EXECUTIVES Crain’s Detroit Business creates this biennial list of the region’s top-paid nonprofit CEOs or top executives based on tax form research. Figures reflect 2008 calendar year compensation reported in IRS 990 forms. This year’s report also reflects IRS reporting changes in the forms. (See story, Page 13.) Total compensation includes deferred compensation, benefits and other types of compensation. Top earners are listed by category below. To buy an expanded report, including financial data on more than 120 Michigan nonprofits and their top executives, for $59, visit www.crainsdetroit.com/lists:

Total Arts, community and culture Base pay Incentive pay compensation Graham Beal, Detroit Institute of Arts $330,000 $40,000 $550,937 Anne Parsons, Detroit Symphony Orchestra $299,679 $0 $414,541 Rich Homberg, Detroit Educational Television Foundation $254,809 $25,000 $309,961 Patricia Mooradian, The Henry Ford $253,413 $25,072 $300,257 Metro Cars will handle all your transportation needs Shirley Stancato, New Detroit Inc. $246,180 $0 $280,783 From 1 to 56 passenger vehicles available Business organizations Doug Rothwell, Business Leaders for Michigan* $430,486 $0 $454,708 Metro Cars is the ofﬁcial and exclusive provider of sedan Mark Tomlinson, Society of Manufacturing Engineers $272,031 $77,866 $419,634 service for the Detroit Metro Airport Beth Chappell, Economic Club of Detroit** $283,230 $0 $311,290 Terry Barclay, Inforum $160,680 $0 $160,680 * Detroit Renaissance Inc. changed its name to Business Leaders for Michigan and changed to a statewide focus in 2009. ** Economic Club of Detroit’s Form 990 for fiscal year ending June 2009, which would include 2008 calendar year compensation, is not yet available. Compensation for Chappell represents the organization’s 2008 fiscal year, which ended June 2008.

Fundraising foundations Melinda Conway Callahan, Presbyterian Villages of Michigan Foundation $136,293 $15,276 $183,839 Metro Cars Powered by Propane Ruth Stephens-Collins, Crittenton Hospital Medical Center Foundation $99,549 $0 $121,195

Grant-making foundations Kevin Seitz, Blue Cross Blue Shield of Michigan Foundation $447,562 $399,296 $1.03 million 800-456-1701 Rip Rapson, Kresge Foundation $436,800 $0 $580,798 C. David Campbell, McGregor Fund* $245,000 $0 $481,610 Robert Aronson, Jewish Federation of Metropolitan Detroit /United Jewish Foundation/Jewish Fund $339,627 $25,000 $446,846 Mariam Noland, Community Foundation for Southeast Michigan $358,440 $25,000 $445,930 *Campbell’s total compensation included a one-time $167,260 adjustment for the termination of the McGregor Fund Defined Benefit Pension Plan.

Health care BOOSTED TO TOP Kenneth Matzick, William Beaumont Kenneth Matzick, who Hospitals (See details at left.) $860,657 $311,150 $7.78 million retired in May as CEO Joseph Swedish, Trinity Health Corp. $1.21 million $545,090 $2.66 million of William Beaumont Hospitals after Daniel Loepp, Blue Cross Blue Shield working for the Royal of Michigan $910,269 $727,575 $1.8 million Oak-based system for Patricia Maryland, St. John Health $784,183 $266,550 $1.52 million 41 years, received Nancy Schlichting, Henry Ford $7.8 million in total compensation in Health System $723,093 $277,409 $1.5 million 2008, according to IRS Form 990. Social services When Matzick turned 65 on May 31 2008, Michael Brennan, United Way he received for Southeast Michigan $343,562 $60,000 $463,261 $6.5 million in Reid Thebault, YMCA of Metropolitan deferred Detroit $223,136 $142,870 $439,749 Assisting your compensation, a payout that catapulted Roger Myers, Presbyterian Villages Matzick to the top of Michigan $266,040 $29,813 $333,982 business through position for total Mark Stutrud, Lutheran Social Services 2008 compensation of Michigan $236,878 $25,000 $262,647 of local health care Paul Bridgewater, Detroit Area Agency executives. the seasons of change. on Aging $212,919 $0 $256,667 Joseph Swedish, CEO of Novi-based Trinity Health, was second at Nontraditional/other Businesses come to Foster Swift for counsel with $2.66 million total mergers and acquisitions, corporate governance, compensation. Kevan Lawlor, NSF International $320,133 $528,850 $1.06 million regulatory compliance, complex litigation and more. In 2008, Matzick Jane McNamara, Greenpath Inc. $380,439 $78,709 $475,657 received base pay of Lincoln Smith, Altarum Institute $231,147 $22,244 $348,858 $860,657 and bonus Bonnie Reyes, National Association and incentive compensation of of Investors Corp.* $177,849 N/A $180,890 $311,150. *National Association of Investors Corp. has not yet filed a 990 for its fiscal year ending September Matzick, 67, became 2009, which would include 2008 calendar year compensation. Compensation reflects a September 2008 CEO of the Beaumont fiscal year end. National Association of Investors Corp. declined to provide a breakout of Reyes’ fiscal system in 2005 after 2008 compensation. Reyes left in February 2009. Visit the new How can we assist? serving as COO for P: 248.539.9900 nine years. He also fosterswift.com E: [email protected] served as administrator of Beaumont Hospital in Royal Oak from 1982 Lansing | Farmington Hills | Grand Rapids | Detroit | Marquette | Holland to 1996. 20100823-NEWS--0015-NAT-CCI-CD_-- 8/20/2010 11:08 AM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 15

BUSINESS DIARY ARE YOU ACQUISITIONS provide a health care reporting and developed a new coated piston for analytics system. gasoline engines that combines the Lakeshore Group has acquired the Lit- BEING tle Rock Baptist Charity Care Center Identity, Bingham Farms, a public re- properties of low wear and low fric- tion in a single application. The new at 9146 Woodward Ave., Detroit, and lations agency, has expanded its client EcoTough-coated piston offers superi- renamed it Lakeshore Skilled Nursing roster to include Hunt Leibert, Hart- or wear resistance and reduces fuel HEARD? and Specialty Care. Lakeshore Group ford, Conn., and InStar Services consumption up to 0.8 percent, as well also created a new specialty care unit, Group, Troy. as reduced CO2 emissions, compared designed to provide short-term suba- Grand River, Ann Arbor, an e-com- with conventional piston coatings. cute care to hospital patients who merce developer, has been retained by Website: www.federalmogul.com. transfer to the facility for a continua- HoMedics, Commerce Township, a Armaly Brands Co., Walled Lake, in- tion of 24-hour nursing care and reha- manufacturer and supplier of self- troduce a line of Brillo Estracell bilitative services. Website: care, wellness and personal health www.lakeshorehealth.com. sponges. Website: www.armaly products, to migrate its e-commerce brands.com. Borders Group Inc., Ann Arbor, has sites. closed on the sale of Paperchase Prod- Mazda North American Operations, BorgWarner Inc., Auburn Hills, will ucts Limited, London, U.K., to Primary Southfield, has launched the 2011 Maz- produce engine timing systems for Capital Limited, London, U.K., a pri- da2 in North America with a branded vate-equity firm, for approximately Turin, Italy-based Fiat Powertrain social game on Facebook called Dri- $31 million. Technologies’ new two-cylinder Twin- verVille and created by Doner, South- Air engine, including the 65-horse- , Troy, field. Website: facebook.com/mazda. North American Bancard LLC power naturally aspirated engine and which offers credit card services, has the 85- and 105-horsepower tur- acquired CDI Technology, Troy, from NEW SERVICES bocharged variants. the corporate development and invest- Level One Bank, Farmington Hills, in- , Bingham Farms, a technol- ment firm Quantum Ventures of Michi- Qualitech troduces Positive Pay, to help protect ogy integrator and software reseller, gan LLC, Auburn Hills. businesses from check fraud losses by MARKETING PR DESIGN NEW MEDIA Ann Arbor Inhospital Physicians PLLC, was selected by Dawda Mann Mulcahy allowing them to make pay/return de- identitypr.com Ann Arbor, has been acquired by IPC and Sadler, a law firm in Bloomfield cisions on potential fraudulent The Hospitalist Co. Inc., a hospitalist Hills, to provide and install Worldox checks. Website: www. physician group practice company. software. levelonebank.com. CONTRACTS EXPANSIONS Azure Dynamics Corp., Oak Park, ArvinMeritor Inc., Troy, announced made the following transactions: Five plans to invest $23 million in the next Balance Hybrid Electric shuttle buses five years to expand its advanced tech- to Western Piedmont Transit in North nologies capabilities at its technical Carolina, manufactured by Champion center in Troy. This project is expect- Bus Inc., Imlay City (the buses were ed to create 125 jobs at the company by sold by National Bus Sales and Leas- 2014. ing from an existing contract estab- ExpertCare Management Services, lished in Texas); four Balance Hybrid Troy, has opened a donation center Electric shuttle buses to the Michigan for people in need at 210 Town Center Department of Transportation with Drive, Troy. Website: www. two going to County Connection in expertcare.com. Midland and two to Roscommon Richards Micro-Tool Inc., Plymouth, County Transportation Authority in has expanded medical and dental ca- Roscommon; one bus to Tehachapi pabilities by purchasing production Valley Healthcare in California (man- equipment from Surgical Reconstruc- ufactured by Glaval Bus of Elkhart, tion Inc. It has also released its propri- Ind., with AZ Bus Sales Inc., in Colton, etary MediDrill and MediMill product Calif., as the dealer); one Balance Hy- lines. brid Electric shuttle bus to Kingston Fast Track Convenience, Canton, is Hospital in Kingston, N.Y. (with a expanding into New York, Connecti- StarTrans Body via Arcola Bus Sales cut and Grand Rapids with vending and Service Corp in New Jersey); and machine, foodservice companies and one bus to Executive Coach Services clients operating its self-checkout sys- in Etobicoke, Ontario. The dealer, tems. Capitol Coachworks, sold the bus, SET Enterprises Inc., Warren, a which uses a Turtle Top Inc. body. provider of steel processing services, Detroit Edison has signed a 20-year has opened two business ventures: agreement with Blue Cross Blue SET Duct Manufacturing Inc. and SET Shield of Michigan to install a 200-kilo- Construction Inc. in Detroit. watt, $1 million photovoltaic system Wild Birds Unlimited, Carmel, Ind., on the roof of a BCBSM four-story has opened a store at 47760 Grand Riv- parking structure at Congress and er Ave., Novi. Telephone: (248) 374- Beaubien in Detroit. The solar array 4000. Website: www.wbu.com/novi. will cover 31,000 square feet of the 42,000-square-foot roof and should be operational in the spring. MOVES Clor and Associates, Grosse Pointe Moran and Co., an investment consult- Farms, has added Pace-Air, Charlotte, ing group, from 407 Sixth St., Suite A, N.C., to its clients. to 400 Water St., Suite 204, Rochester. Telephone: (248) 652-2599. Taubman Centers Inc., Bloomfield Hills, and CoastWood Capital Group The Law Center for Social Security LLC, San Francisco, Calif., signed an Rights from 21650 W. 11 Mile Road to agreement with Queen Emma Land 25925 Telegraph Road, Suite 100, Co., Honolulu, to explore development Southfield. Telephone: (248) 350-1000 of an open-air shopping center at the or (800) 832-3471. Website: www. current International Market Place in ssrights.com. Waikiki. According to the agreement, CitrinGroup, an investment advisory Taubman will evaluate the feasibility firm, from Southfield to 280 N. Old Lease Dragging You Down? of developing the market place as well Woodward, Suite 206, Birmingham. as conduct in-depth due diligence into Website: www.citringroup.com. Lease Renegotiation physical and regulatory require- Mango Languages, an online lan- Whether you currently lease 3,000 square feet or ments. guage-learning system, from 31420 own twenty-five locations, Plante Moran CRESA Tenant Representation Thomson Reuters, Ann Arbor, has Northwestern Highway, Suite 100, to signed a five-year contract with the 30445 Northwestern Highway, Suite is an independent, fully integrated, real estate North Carolina Department of Health 300, Farmington Hills. Telephone: Incentives & Human Services, Raleigh, N.C., to (248) 254-7450. Website: www. consulting firm that will act as your unbiased advisor. mangolanguages.com. Sale Leaseback Children’s Aid Society, from 7375 Contact us today to lower your real estate costs. Woodward Ave., Suite 1300, to 2151 E. DIARY GUIDELINES Jefferson Ave., Suite 250, Detroit. (248)223-3500 pmcresa.com Project Feasibility Send news releases for Business Telephone: (313) 961-8100. Website: Diary to Departments, Crain’s www.casmichigan.org. Lease Administration Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or NEW PRODUCTS Buyer Representation send e-mail to cdbdepartments@ Simrit, a division of Freudenberg-NOK, crain.com. Use any Business Diary Plymouth, introduces VO628 and Project Management item as a model for your release, VO793, new fluorocarbon compounds and look for the appropriate for semiconductor sealing. Simrit also category. Without complete has expanded its line of self-fusing sil- information, your item will not run. icone tape to include sinusoidal fiber- Photos are welcome, but we cannot glass reinforced tape. Website: guarantee they will be used. www.simrit.com. Federal-Mogul Corp., Southfield, has 20100823-NEWS--0016-NAT-CCI-CD_-- 8/20/2010 11:07 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS August 23, 2010

CRAIN'S LIST: LARGEST STAFFING-SERVICE COMPANIES Ranked by 2009 revenue

Company Revenue Revenue Average daily Percent involved in Address ($000,000) ($000,000) employment No. of W-2 forms No. of offices in staffing industry Rank Phone; website Top local executive 2009 2008 2009 Annual payroll 2009 issued 2009 metro Detroit 2009 segment Kelly Services Inc. Carl Camden $4,314.8 $5,517.3 NA NA NA NA NA 1. 999 W. Big Beaver Road, Troy 48084 president and CEO (248) 362-4444; www.kellyservices.com MSX International Inc. Frederick Minturn 304.0 382.5 NA NA NA NA NA 2. 1950 Concept Drive, Warren 48091 president and CEO (248) 829-6300; www.msxi.com Talascend LLC Ron Wood 256.0 202.0 NA NA NA NA NA 3. 5700 N. Crooks Road, Suite 450, Troy 48098 president and CEO (248) 537-1300; www.talascend.com TechTeam Global Inc. Gary Cotshott 211.2 260.0 NA NA NA NA NA 4. 27335 W. 11 Mile Road, Southfield 48033 president and CEO (800) 522-4451; www.techteam.com The Bartech Group Inc. Jon Barfield 185.0 235.0 1,285 NA NA 2 15% office/clerical 5. 17199 N. Laurel Park Drive, Suite 224, Livonia 48152 president 85 technical (734) 953-5050; www.bartechgroup.com Strategic Staffing Solutions Inc. Cynthia Pasky 171.0 160.0 1,400 88.6 1,878 2 3 office/clerical 6. 645 Griswold St., Suite 2900, Detroit 48226 president and CEO 9 professional (313) 596-6900; www.strategicstaff.com 88 technical Altair Engineering Inc. James Scapa 139.0 152.0 NA NA NA NA NA 7. 1820 E. Big Beaver Road, Troy 48083 chairman and CEO (248) 614-2400; www.altair.com Advantage Technical Resourcing Ian Driscoll 133.0 130.0 1,920 NA NA NA 100 technical 8. 2600 Telegraph Road, Suite 170, Bloomfield Hills 48302 senior vice president, (248) 745-9797; www.hirethinking.com engineering services Acro Service Corp. Ron Shahani 102.0 105.0 2,013 55.8 3,974 2 10 office/clerical 9. 39209 Six Mile Road, Suite 250, Livonia 48152 president, chairman and CEO 20 professional (734) 591-1100; www.acrocorp.com 60 technical 10 other VisionIT David Segura 101.0 102.0 NA NA NA NA 100 technical 10. 3031 W. Grand Blvd., Suite 695, Detroit 48202 CEO (877) 768-7222; www.visionit.com Christine Rice president

This list of temporary-employer/staffing-service companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Agencies with headquarters in the Detroit area are listed by their total revenue, and agencies with headquarters outside the area are listed by revenue of their local operations only. This is not a complete listing but the most comprehensive available. Office/clerical includes secretaries, office/filing clerks, receptionists, typists, data-entry and word-processing positions; industrial includes manufacturing and factory workers and shipping and receiving positions; technical includes computer programmers and systems analysts, designers, drafters, editors, engineers and illustrators; professional includes accountants, auditors, COOs, paralegals, attorneys, sales and marketing and management positions; medical includes supplemental staffing for hospitals, nursing homes and outpatient clinics and licensed, trained and unlicensed home health care professionals (registered nurses, medical technologists and home health aides); marketing includes product demonstrators and telemarketers. NA = not available. NC = no change. LIST RESEARCHED BY ANNE MARKS

You’ll meet key people from companies like: PRESENTS Dow Corning’s I Dow Corning, which has been Mary Lou Benecke a leader in solar investments. Michigan’s New will tell the story of I how federal grants, Suniva, which is making a $250 million investment in a tax incentives and new solar manufacturing facility Silicon Valley regional collaboration in Saginaw County helped persuade the federal government I Hemlock Semiconductor, and the private sector to invest more than The Great Lakes Bay Area (Saginaw, Midland and Bay the single largest new investment City) is one of Michigan’s biggest under-reported $3 billion in manufacturing and research in the region business stories. plants devoted to alternative energy. Since 2005, this region has leveraged talent, tax incentives and new funding sources to create a solar-energy hub that has attracted more than Join us for lunch Registration ...... Noon $3 billion in new investments. Lunch ...... 12:30 p.m. in Midland Program ...... 1 p.m. I What can you learn from this region on Wednesday, Sept. 22, Adjourn ...... 2:30 p.m. and its companies? at Northwood University NEW! Networking EXTRA I What are these new Michigan companies’ pre-registered attendees receive the attendee list on Sept. 20 supply chain needs? via e-mail.

To register please visit PRESENTING AND LOCATION SPONSOR GOLDSPONSORS www.regonline.com/2010cmbbayarea

PRE-REGISTERED : $35 each $45 each at the door

Please call 313.446.0300 to register groups. DBpageAD.qxd 8/18/2010 4:56 PM Page 1

SOME BANKS WANT YOUR FEES. WE’D RATHER HAVE YOUR BUSINESS. HUNTINGTON FREE BUSINESS CHECKING

Finding the right checking account for a small business can be a challenge. You can opt for free checking and be treated like an afterthought, or pay a premium for services you don’t use. Then there’s Huntington. All the services you need with award-winning customer support – that’s what our Free Business Checking offers. It’s what you’d expect from the #1 SBA lender. See what we can do for you by visiting huntington.com or calling 1-800-480-2001.

Huntington Free Business Checking is limited to 200 transactions and $5,000 in-branch cash deposits per month, then excess transaction and cash deposit transaction fees apply. A “transaction” is any combination of checks paid, deposit tickets, deposited checks and ACH credits and debits. Award claim based on 2009 Business Banking Study. All excellence award selections were based on studies conducted by Greenwich Associates, a leading worldwide strategic consulting and research ﬁrm specializing in ﬁ nancial services. Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia and Western PA. Source: U.S. SBA from October 1, 2007, through June 30, 2010. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.TM is a service mark of Huntington Bancshares Incorporated. ©2010 Huntington Bancshares Incorporated. 20100823-NEWS--0018-NAT-CCI-CD_-- 8/20/2010 11:06 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS August 23, 2010

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

PEOPLE ARCHITECTURE HOSPITALITY Raitt Heuer & Weiss PC, Southfield, remaining partner. Dan Kohler, Kristina Glusac, Russ Sydney Schiller-Nicholson to corporate IN THE SPOTLIGHT Meyer and Tom Dillenbeck to senior sales manager, MotorCity Casino Hotel, MANUFACTURING Charles Kelly, D.O., has been associate, Hobbs + Black Associates, Detroit, from director of sales, Marriot Ann Arbor, from associate. named senior vice president and TownPlace Suites, Dearborn. Jerry Mosingo to president and COO, chief medical officer of the new MMI Engineered Solutions Inc., ENTERTAINMENT Henry Ford LAW Saline, from president and CEO, Ca- Physician Kevin Grigg to vice president of public dence Innovation LLC, Troy. Lynn Preece to senior associate, Ed- Network. relations, Palace Sports & Entertain- mund Maciorowski PC, Bloomfield ment, Auburn Hills, from director of MARKETING Last month, media relations; and Cletus Lewis Jr. to Hills, from partner, Baker & McKen- Henry Ford director of media relations, from assis- zie LLP, Chicago. Philip McAvoy to digital creative Health System tant director of media relations. Grigg Lewis Eric Linden to practice co-leader, Jaffe director, push-twentytwo, Pontiac, from in Detroit announced the creation of a physician-led network that Kelly could contract with Medicare and other payers under changes made possible earlier this year by the federal health care reform bill. The network will include the Henry Ford Medical Group, other private physicians, Henry Ford’s six hospitals and 32 primary care centers. Kelly, 63, who starts in September, will oversee the creation, development and implementation of clinical improvements and best practices across the network. He will be responsible for developing coordination and cooperation between the Henry Ford Medical Group physicians and private practice physicians. Kelly has been vice president of medical affairs and chief medical officer of Henry Ford Macomb Hospitals. He is a graduate of the Philadelphia College of Osteopathic Medicine and is board-certified in internal medicine and gastroenterology.

digital creative director, Berline, Retirees need to know their best Medicare option. Bloomfield Hills. They need to know about BCN Advantage. NONPROFITS Janice Tessier, vice president At Blue Care Network, our BCN Advantage HMOSM plan has been chosen by and manager of diversity initia- many individuals and businesses across Michigan. Why? Because Blue Care tives, Comerica Network believes outstanding service and access to quality care are what Bank, Detroit, to matter most to Medicare beneﬁciaries and to you. And that’s exactly what the board of directors, Affirmations, BCN Advantage provides its members — all at exceptional value. Ferndale. Tahirih Ziegler to Whether you have a large group or a small one, BCN Advantage can tailor a executive direc- Tessier tor, Detroit Local plan to meet your needs. Learn more by visiting us online, contacting your Blues Initiatives Sup- representative or independent agent or calling Blue Care Network today. port Corp., De- troit, from executive director, Michigan Local Initiatives Sup- BCN Advantage HMO port Corp., Kala- CONTACT INFO mazoo. MiBCN.com/medicare SERVICES Call 1-866-966-BLUE (2583) Ross Kollenberg to TTY users call 1-800-431-7944 Ziegler national opera- (8 a.m. to 5 p.m., seven days a week) tions manager, Medicare and more Certified Restoration Drycleaning Net- Or contact your Blues representative Blue Care Network of Michigan is a nonprofit corporation and independent work LLC, Berkley, from construction or independent agent licensee of the Blue Cross and Blue Shield Association and mitigation manager, On-Site Spe- cialty Cleaning & Restoration LLC, Leading Michigan to a healthier future.SM Troy. SUPPLIERS

SM Henry Wallace, director of Ambac Fi- BCN Advantage HMO is a health plan with a Medicare contract. nancial Group Inc., Diebold Inc. and H5883_S_GrpDecMkrAD07/10 Hayes Lemmerz International Inc., appointed nonexecutive chairman, Lear Corp., Southfield. 20100823-NEWS--0019-NAT-CCI-CD_-- 8/20/2010 11:09 AM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 19

CALENDAR Self-Employed? Associates LLC; and MaryAnn Labant, Source. Learn to research business FRIDAY marketing communications manager, ideas or sources for your business AUG. 27 Accuri Cytometers Inc. Lawrence plan. Oakland County Business Cen- Affordable Insurance Technological University, Southfield. ter, Waterford Township. Free. Con- FastTrac: Listening to Your Business. Students free, $25 APACC members, tact: (248) 858-0783; e-mail: deaver- 8 a.m.-noon. Michigan Small Business $35 nonmembers. Contact: (248) 844- [email protected]; website: and Technology Development Center. 4100; e-mail: [email protected]; web- www.oakgov.com. An opportunity to examine your busi- site: www.apacc.net. Life ness today, visualize your business Secrets to Securing Government three years from now, and formulate Five Keys to Successful Financial Funds for your Biotech Startup. 4-6 Health an internal planning process to estab- Planning for Small Business. 8 a.m.- p.m. Sept. 10. TechTown; Asterand; lish interim goals and strategies. Oak- noon. Sept. 8. Learn the essentials of MichBio. With: Jon Kozesky, G2G Con- Retirement land County Business Center, Water- using financial information to make sulting. NextEnergy, Detroit. $5 dona- ford Township. $50. Contact: (248) effective decisions about improving tion encouraged. Contact: (313) 879- Long-Term Care 858-0783; e-mail: [email protected]; business performance. Oakland Coun- 4478; e-mail: allison@techtownwsu. website: www.misbtdc.net. ty Business Center, Waterford Town- org; website: techtownwsu.org. ship. $25. Contact: (248) 858-0783; e- mail: [email protected]; (800) 987-0290 COMING EVENTS website: www.oakgov.com. Expanding Opportunities in the De- fense Industry. 9-11 a.m. Sept. 13-15. Marketing: A Key to Business Success. The Michigan chapter of the National 5:30-8 p.m. Sept. 8. Asian Pacific Ameri- Pre-Business Research. 9 a.m.-12:30 Defense Industrial Association. Net- can Chamber of Commerce. With: Bar- p.m. Sept. 9. Oakland County Busi- Zayti Agency work with government and defense in- bara Shoffner, president, Shoffner and ness Center; The Entrepreneur’s IIS000320 dustry decision-makers from the De- partment of Defense, the armed forces, Automation Alley and others. Call your local Insphere office for a FREE quote today! With: Tracey Pinson, director, Office of Small Business Programs, Depart- CAREER MOVES ment of the Army; others. Marriott Detroit, Troy. $395. Contact: (586) 825- 7141; e-mail: [email protected]; web- NON-PROFIT REAL ESTATE site: www.ndia-mich.org.

EXECUTIVE DIRECTOR Working Effectively With Japanese. 8:30 a.m.-4 p.m. With: Detroit Executive Service Corps, a Southeastern Sept. 14. Michigan non-profit agency which acts as a Makiko Masuda, Detroit representa- resource in providing affordable, effective and Now could be the perfect time to become a tive, Japan Intercultural Consulting. comprehensive management assistance consulting commercial real estate agent. St. John’s Golf & Conference, Ply- 800-292-3831 services for other nonprofits, educational and mouth. $275. Contact: (419) 781-5383; e- governmental agencies in the community, is To find out why, contact indiantrails.com seeking a full-time Executive Director. This agency David Greene at 248-415-2300 mail: seminars@japanintercultural. is committed to helping client organizations com; website: www.japan become more successful by improving the intercultural.com. business side of their operation through increased efficiency, financial viability, sustainability and Call Us For Personalized impact. Service: (313) 446-6068 Crain’s Second Stage Workshop: Scal- The Executive Director works closely with the very ing Up Fast. 7:30-10:30 a.m. Sept. 14. active, involved and committed board of directors, CLOSING TIMES: Monday 3 p.m., Crain’s Detroit Business; Walsh Col- a small staff and volunteer consultants. one week prior to publication date. ONE HU Please call us for holiday closing times. lege. Hear from executive-level peers G ND Demonstrated competency in nonprofit funding IN R T E raising, management, operations, and finance is who managed companies through sud- A D R Y FAX: (313) 446-1757 B E required. We are seeking someone who can E den growth. With: Dr. Lee Meadows, A L R

E-MAIL: [email protected] E manage professional volunteers, has competent S professor of management, Walsh Col- C computer skills and embraces technology in the INTERNET: 100 work place. www.crainsdetroit.com/section/classifieds lege; Michelle Crumm, chief business officer, Adaptive Materials Inc.; Bill Three years minimum related management Confidential Reply Boxes Available experience is required as well as excellent oral and Johnson, CFO, Xcend Group; Tom written communication skills. Bachelor’s degree or PAYMENT: All classified ads must be Nixon, partner, Identity Marketing equivalent experience required. Masters in social prepaid. Checks, money order or and Public Relations; and Jason work, public administration, an MBA or related field Crain’s credit approval accepted. desired. Credit cards accepted. Teshuba, CEO, Mango Languages. Interested candidates should email their cover Michigan State University Manage- letter, resume and salary requirements by See ment Education Center, Troy. $35, $30 August 27, 2010 to: Crainsdetroit.com/Section/Classifieds each for groups of 10 or more, $40 at [email protected] for more classified advertisements the door. Contact: (313) 446-0300; e- mail: [email protected]; website: www.crainsdetroit.com. For sponsor- ship opportunities, contact Marla Downs at (313) 446-6052 or MARKET PLACE [email protected]. Eggs & Energy Breakfast Series. 8- 10:30 a.m. Sept. 20. Engineering Soci- Comfort and ANNOUNCEMENTS & ety of Detroit. With: Mujeeb Ijaz, sys- SERVICES tems energy solutions group manager, A123 systems. U.S. Rep. Gary Peters, t$IBSUFST HEALTH & FITNESS D-Bloomfield Township, has been in- Luxury vited to attend. ESD headquarters, Southfield. $35 members, $50 non- t5PVST members; includes continental break- Get active and interactive at fast. Join ESD for $114 and attend for t4IVUUMFT free. Contact: (248) 353-0735, ext. 149; e- 00 mail; [email protected]; website: t$POWFOUJPO4FSWJDFT SAVE $100 OFF www.esd.org. aHealthierMichigan.org t$PSQPSBUF&WFOUT CALENDAR GUIDELINES Contact Indian Trails for details. Must use this Crain’s Classifieds Gets Results t4DIFEVMFE4FSWJDF promotional code at time of booking: CDB52aug If you want to ensure listing online and be considered for print publication in Crain’s Detroit Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar near the top of the page. Then, click “Submit Your Entries” from the drop-down menu that will appear and you’ll be taken to our online submission form. Fill out the form as instructed, and then click the “Submit event” button at the bottom of the page. That’s all there is to it. More Calendar items can be found on the Web at www.crainsdetroit.com. Page 20 CRAIN’S DETROIT BUSINESS August 23, 2010 REAL ESTATE

AUCTIONS INDUSTRIAL PROPERTY INDUSTRIAL PROPERTY RESIDENTIAL PROPERTY WATERFRONT PROPERTY

LENDER DIRECTED INDUSTRIAL Pontiac Warehouse for Lease 14 Lots Paint Creek Country Club — Watefront Condo for Sale — REAL ESTATE AUCTION Best Deal in Town! 1638 N. Edison Shores Place, Port Huron. Former Lo-Temp Brazing Properties - Toledo, OH 7-golf course lots; 2-lakefront lots 4-wooded lots & 1-corner lot. International view of the Blue Water Bridge on Rail - Easily Accessible - Low Rates the St. Clair River! 3350 sq. ft. condo, 4br, 3.5 Wednesday, 09/01/10 at 12 PM Available: On-site Mgmt - Exterior Storage Must buy package $315,000 Location of Auction: www.waretechindustrialpark.com Tom Zibkowski baths, att gar, fin bsmt, all the ammenities! 3122 South Ave - Toledo, Ohio 83,719 SF 43,000 SF CATELLUS GROUP, LLC Realty Executives Midwest C#3683 $459,900 ON-SITE OPEN HOUSE (810) 695-7700 586.532.6700 Ext. 114 Mike Basey — O’Connor Realty 810.334.6800 • Warehousing, Machine/Die Storage, held on August 25th Manufacturing from 11 AM - 1 PM • M/59, Widetrack, and Woodward Area AUCTIONS Four Buildings Totaling 46,192 Sq. Ft. • 5,000 to 200,000 Sq. Ft Available & Approximately 3.992 Acres: AVAILABLE NOW with Offices, Short or Long Term Leases Luxury Real Estate Auction ORDER OF SALE - OFFERED IN 3 TRACTS: 4,000 to 100,000 sq. ft. • 8 Interior Truck Wells, 16 Ft. Ceiling Tract 1 - 3106 South Avenue Heights, Sprinklers, Heated, Buss Duct, Tract 2 - 3116 & 3122 South Avenue Also 10,000 & 25,000 sq. ft. and Air Lines. 248-496-3405 3060 Stone Meadow, Milford Twp., MI Tract 3 - 330 & 334 Elmdale Free Standing Bldgs w/truckwells. Due Diligence Materials Available at MISCELLANEOUS www.signatureassociates.com/lo-temp.htm 1 Mile from Metro Airport For more information, contact Auctioneer: VINEYARD AND WINERY FOR SALE Craig Herschel - [email protected] REA CONSTRUCTION Picturesque vineyard and winery in Upper Mid-

THE TEAM No Signature. No Results. West passionately developed over past 20 years. REALTORS 888.708.7070 (734) 946-8730 Beautiful operation producing acclaimed wines. The soils, exposure, altitude and location on the Also Heavy Industrial 45th parallel (also home to Bordeaux, Rhone, Open Houses: MISCELLANEOUS Land Available Piedmont and Willamette wine regions) make this Wednesday, September 8th 4-7pm setting prime for quality cool climate wine grapes. Builder Investor looking for lots in Sunday, September 12th 12-3pm Macomb or Oakland Township. www.reaconstruction.net About 150 total acres, 50 acres of premium vines Minimum of 25 lots. now producing. 586-201-9235 or 586-405-4581 Includes winery, picturesque tasting room, three Held on-site Sunday, September 19th at 1pm residential homes, three barns and a storage This extraordinary mansion situated on a 2.75 acre wooded lot is overflowing warehouse. The winery has a recognized AUCTIONS with elegance and distinction. At 8622+/- sq. ft., this residence features 5 winemaker and top quality wine making bedrooms, 5 baths, 2 lavs, library, custom spiral staircase, 2000 bottle wine cellar, equipment. Advanced development expected to sauna, and home theatre, where no expense has been spared. A finished lower lead to near term profitability. level walkout with 2nd kitchen takes you to your backyard sanctuary with a Public Auction! For more info contact: Dan Butler, custom swimming pool, sports court, fire pit, and terrace. 6 car heated garage with portico and so much more! (616) 855-2604, [email protected] Beth Rose On-site Sunday, September 12 at 1pm Rose Auction Group, LLC CAI Auctioneer 2009 Michigan State Preview & Registration at Noon OFFICE SPACE 877.696.7653 Auctioneer Champion RoseAuctionGroup.com ID#2801000078 1799 S. Coats Road, Oxford, MI 48371 Flint Township Office Building Auction of Golf Course and Banquet/Club House Novi, Michigan Oakland County’s Growth Community On-line Auction Novi, MI Property • Class A Office Building • I-69 / I-75 / US23 near Bishop Airport Minimum Bid - $600,000 — No Reserve • Up to 20,000 Sq. Ft. Available - 300 car parking Your Very Own Secluded Sanctuary! • Fully Furnished with 100 pre-wired workstations As you inhale nature’s fresh air in your very own secluded sanctuary, you exhale as • 800 kw backup generator you realize you have it all to yourself! You’re nestled seven acres into the woods • General Offices, Call Center, Data Center or where your custom built brick and stone ranch awaits you. Double doors welcome Medical Offices you to cathedral ceilings, stone fireplace in the living room, and custom designed 248-496-3405 windows, with an updated granite kitchen and stainless steel appliances, along with three spacious bedrooms. Make your way down to a private walk-out basement and celebrate the night away with a beautiful deck and gazebo. The scenery WANTED TO LEASE will take your breath away! This picturesque residence is located in Lake Orion BY • Bank-Owned. 14,000+/- SF Clubhouse, 30 +/- acres of land, Class C Liquor License • 9-Hole Executive Schools! Don’t hold your breath any longer. U.S. GOVERNMENT Golf Course with Bentgrass Fairways • 2007 Bank Appraisal Value - $2,100,000 • 750 +/- Housing Units Beth Rose, CAI Auctioneer Rose Auction Group, LLC in Four Fully-Developed Subdivisions Surround Golf Course • Novi, Michigan Median Household Income - 2009 Michigan State Auctioneer Champion The U.S. Government is seeking to lease $81,793 (2009 data) • Seller Financing Available to Qualified Buyers (20% down required) 877.696.7653 office space within 20 miles of the ID#2801000078 www.RoseAuctionGroup.com Detroit Arsenal, consisting of the following: On Line Auction Date: August 26, 2010 OpenOpen Houses: Sun., Aug.,Aug., 29th Noon-3pm3pm & Wed., Sept.,Sept., 8th 4-7pm7pm www.BratemanAuction.com/NoviGolf Exclusive use of an entire free-standing Contact: Jonathan Brateman Properties (248) 477-5000 facility consisting of approximately 41,000 NSF of space suitable for administrative purposes with 350 parking spaces. OFFICE SPACE For additional requirements, please contact Jennifer Rahn at 502-315-6975, or [email protected] . See What You’ve Responses can also be mailed to: U.S. Army Corps of Engineers, Louisville District, ATTN: CELRL-RE-M/Rahn, P.O. Box 59, Louisville, KY 40201-0059. Been Missing Applications required by September 2, 2010

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CLOSING TIMES: Monday 3 p.m., one week prior to publication date. Please call us for holiday closing times. FAX: (313) 446-1757 E-MAIL: [email protected] INTERNET: www.crainsdetroit.com/section/classifieds Confidential Reply Boxes Available If you are in the market for new office space, PAYMENT: All classified ads must be consider the Detroit Branch, Federal Reserve Bank of Chicago: prepaid. Checks, money order or I Very competitive rental rates Crain’s credit approval accepted. I Free secure onsite parking Credit cards accepted. I 1st class amenities and infrastructure See 1600 East Warren Avenue I Suites from 6,000 - 24,000 sf. Crainsdetroit.com/Section/Classifieds for more classified advertisements For your personal tour, contact Sheila Fogarty – 248-594-1155 – [email protected] 20100823-NEWS--0021-NAT-CCI-CD_-- 8/20/2010 5:07 PM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 21 Pinnacle: Racecourse in arrears, battling financial problems ■ From Page 1 period because of a then-unpaid sessed until it became a privately Jerry Campbell said the appeals There is no tax on live-race wa- acres at the corner of Pennsylva- water bill over the winter. owned track, which likely is why are standard business practice and gering. nia and Vining roads, a mile south- The township is no longer pro- the tax bill wasn’t generated, Bow- are being handled for the track by State statistics show that west of Detroit Metropolitan Airport. viding a police officer for live race ers said. Honigman Miller Schwartz and Cohn $203.3 million was wagered at the Jerry Campbell is the retired days. The unpaid taxes mean the LLP. state’s six tracks in 2009, down chairman and founder of the for- “We can’t do it for free,” Bowers township should not have ap- The township collects taxes and from $231 million in 2008. mer Republic Bancorp Inc. in Ann said. “They haven’t been in com- proved a parcel split that allowed divides them among a number of The Campbells have been build- Arbor. pliance with their contract. It’s Campbell’s J.L.L.J. Corp. to sell sev- political entities, including the ing since 2007 what eventually will Bill Shea: (313) 446-1626, been a constant struggle to get en acres adjacent to the track two state, county, township, the local be a $142 million horse track on 20 [email protected] what’s owed out there.” weeks ago for $179,000 to the Sault school district, Huron-Clinton Campbell said the track has Ste. Marie Tribe of Chippewa Indians Metroparks and Wayne County Com- been paying its township bills on for future development, Bowers munity College District, Bowers time, and there’s no need for as said. said. much police protection because “At that point the township Wayne County said it began Pinnacle dropped from five days of should not have granted the land looking into the tax issue last live racing per week to just the split because they were arrears in year. weekends. taxes,” she said. “For several years the tax as- He said any arrearage will be Campbell and his wife, Lisa, sessment on this property was $0,” paid. through Post-It Stables, filed ap- wrote Stephanie Baron, press sec- The track recently requested a peals in June 2009 and June 2010 retary to Wayne County Executive two-year suspension of its con- with the Michigan Tax Tribunal over Robert Ficano, in an e-mail to tracts with the township to allow the assessments on the track they Crain’s. “The property is on the time for it to improve its finances, opened in 2008. tax rolls. However, the Huron but the township board hasn’t vot- The Campbells want the Township treasurer failed to send ed on the request, Bowers said. $14.5 million real property assess- out a tax bill in 2009 and 2010. The township also was informed ments for both years reduced to Huron is working with the county that DTE Energy had cut off electric- $2.5 million for 2010 and $4.25 mil- to rectify this issue.” ity to the track for a time, Bowers lion for 2009, said Patty Halm, Lisa Campbell, who is the said, but service was eventually chairwoman of the tribunal. track’s president and CEO, de- restored. They’re also appealing an as- ferred all comment to the track’s Bowers said he believes the tax sessment of $2.125 million on the on-site management. A message bill issue arose from internal restaurant/bar at the track for was left Thursday and Friday for township confusion over the sta- both years and want it reduced to Pinnacle General Manager Mike tus of the land the track sits upon. $420,000 for 2010 and $600,000 for Mackey. Jackson-based Post-It Stables Inc. 2009. Lisa Campbell previously told bought 320 acres for $1 from the The appeal process typically Crain’s that the track has slowed Wayne County Land Bank Authority in takes two years because of the re- its capital construction spending April 2008. quired waiting periods and be- because of the tighter credit mar- Because that land had been cause of a backlog of cases, Halm kets and a reduction in the num- county property, it wasn’t as- said. ber of live race days because of state cuts to the horse racing budget. The track has been spending $5,900 to pay for the state personnel required to be on site for live racing for 41 days. It has 361 days scheduled this year for simulcast racing, which doesn’t require state employees present. The state, as part of its budget cuts, trimmed live racing at Pinna- cle to three days this season, forc- ing the track to pay for more days. The track does live racing only on weekends. “There isn’t a track in America that can run two days and survive. We need to be open five,” Jerry Campbell said, adding he’s been subsidizing the track himself but declined to say how much he’s spending. Lisa Campbell has said the track is not yet profitable. According to state records, Pin- nacle collected $4.2 million in 2009 and $1.9 million in 2008 from on- site wagering. It paid $960,823 in 2009 and $342,860 to the state from a 3.5 percent tax on simulcast wa- gers. Money also goes to the township.

BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Aug. 13- 19. Under Chapter 11, a company files for reorganization. Chapter 7 involves liquidation. M & K Framing Inc., 27912 Van Howe, Roseville, voluntary Chapter 7. As- sets: $57.84; liabilities: $132, 845. Gregory C. Roche, D.O., PC., 43494 Woodward Ave., Suite 101, Bloomfield Hills, voluntary Chapter 11. Assets and liabilities not available. — Shawn Wright 20100823-NEWS--0022-NAT-CCI-CD_-- 8/20/2010 5:06 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS August 23, 2010 Senior living: Project promises jobs ■ From Page 3 coffee!! area,” said PVM CEO Roger Myers. vices, Carnaghi said, with another “As they become increasingly frail SENIOR HOUSING PROJECTS 28 home health care jobs for the af- … without an option like what we fordable assisted living. The East Jefferson Neighborhood opportunity!! are doing, they would likely be Project will cap nearly 13 years of PVM and United Methodist have forced to move out of the city.” senior housing development in rounded up about $15 million in Aside from Detroit for Presbyterian Villages of funding toward the project. So far, interested?? construction Michigan, totaling over $67 million that includes principally low-in- jobs, the first in investment and 409 units of come housing tax credits, and phase of the pro- housing: money from the U.S. Department of franchise?? ject is expected Ⅲ 1997: Village of Bethany Manor, Urban Development and Housing to create nearly off 14th Street between Gladstone passed through the city, through 150 health-relat- and Blaine streets, 52 units MSDHA and directly from the fed- ed jobs, Myers Ⅲ 2001: Village of Brush Park eral agency, Carnaghi said. There Contact us at said. Manor Paradise Valley, off Brush is adequate funding to begin con- It’s also ex- Street between Edmund Place and struction, but funding for the sec- (517) 913-1987 or Alfred Street, 113 units pected to draw ond phase is still needed. Myers Ⅲ [email protected] youths from sur- 2005: Village of Harmony Manor, That work, on the 8,000-square- off Birwood Avenue between Fenkell rounding neighborhoods and the foot building, has a less-specific and Chalfonte streets, 43 units nearby University Prep Math and timeline tied to PVM’s ability to Ⅲ 2005: Village of Woodbridge Science High School opening this secure additional funding, Car- Manor, off Martin Luther King Jr. www.biggby.com fall to visit the planned café or to Boulevard between Gibson Street naghi said, but it is likely to be a volunteer or do internships, he said. and Miracles Boulevard, 100 units year or more out. PVM is finalizing a purchase Ⅲ 2007: Village of Oakman PVM plans to add two upper agreement with the UAW/GM Center Manor, off Woodrow Wilson Street floors and 16,000 square feet to the for Human Resources to buy 1.78 between Kendall and LaBelle building that would be environ- acres and two former Parke-Davis streets, 55 units mentally friendly and have rooms buildings there for $700,000, said Ⅲ 2009: Village of St. Martha’s, off and communal spaces for 24 se- Myers. The organization expects to Joy Road between Mansfield Street niors in home-like settings. close on the site within two months. and Prevost Avenue, 46 units On the ground floor, it plans a The property is bounded by community café that has computers Franklin to the north, Wight to the foot building will start by the end and offers programs for exercise, south, McDougall to the west and of the year, Myers said. arts and other activities. The devel- Walker to the east. Floors two through four will be opment will have other green fea- Nationally Recognized Substance Abuse After being selected as one of five retrofitted for one-bedroom apart- tures, such as a rooftop garden, and grantees by MSHDA, Chelsea-based ments of affordable assisted living. a connection to the UAW campus. Residential Treatment Center United Methodist Retirement Com- The first floor will be converted to A third component planned for munities asked PVM to work to- an adult day center and space for the community is construction of a I can help you to save a life today gether on the project. Presbyterian physical therapy, occupational building with 40 units of indepen- Villages is the developer and United health services and other senior dent affordable housing. PVM plans Methodist will be part of the owner- health and wellness services. to apply for a capital advance from CHIEF EXECUTIVE OUTREACH ship group in providing services. Presbyterian Villages and Henry HUD to construct the building as “PVM brought strengths we did Ford Health System are discussing soon as this year, Myers said. not have,” said Marie Seddon, ex- the health care services to be in The East Jefferson Neighbor- Just call me on my ecutive director of the United the first building, Myers said. The hood Project “will be far and away personal cell phone (734)476-9931 Methodist Retirement Communities first phase of the community, the largest we have done in the Denise Bertin-Epp Heritage Foundation. “PVM has a which should take 12-14 months to city,” Myers said. President and Chief Nursing Officer, Brighton Hospital long and successful history of de- complete, will also include apart- The obligated group, which in- I Highest physician recognition by the American Society of Addiction Medicine (ASAM) veloping senior housing projects, ment balconies, rooftop gardens cludes PVM, the PVM Foundation I Masters prepared and experienced therapists particularly in Detroit.” and green space, said Brian Car- and three of its villages — in I Highest percentage of addiction certified nurses in the USA (CARN) UMRC posted just over $41 mil- naghi, senior vice president of fi- Chesterfield Township, Redford I Integrative therapies, including auricular detox acupuncture and yoga nance and business development I First choice for executives, health professionals and attorneys lion in revenue and a net loss of Township and Westland — report- $783,447 in 2008, the year of its lat- at Presbyterian Villages. ed $35 million in operating rev- www.brightonhospital.org est tax filing. It is expected to create 118 health- enue for 2009 and net loss from op- 800-523-8198 On the first phase of the East related jobs for the adult day center erations of $778,488. Jefferson project, redevelopment in areas such as nursing, physical Sherri Welch: (313) 446-1694, work on the larger, 78,000-square- therapy, pharmacy and social ser- [email protected] Confidential • Patient/family support • Intervention liaison • Evaluation Admission • Advocacy/counsel • Referrals • Concierge services SP1563 Architect: Designing her own future ■ From Page 3 And she was project manager have lower overhead,” she said. “A chitects who all have the same spe- for the design of the Compuware project can be delivered in a lean cialty, said Jeff Hausman, office di- Building in Detroit. way, on a lean time frame as well.” rector for the Smithgroup architec- After going off on her own, von Her husband, Tamas, is also a ture firm’s headquarters office in Staden contacted all of her clients partner in Von Staden Architects. He Detroit. and found herself quickly in the started the firm in 2000 and serves “If you assemble a new team for running for the Quicken project. the high-end residential market. a project, you have to ask how “I was told that (the Compuware When Gail was looking for a many times they’ve worked to- Building) was looking for a propos- new job, he told her “you already gether, what kind of synergy do al to make it a multitenant build- have a desk right here,” and she they have?” he said. “With a larger ing, with people on three or four took on a commercial interiors firm, you can bid on a forensic lab floors,” she said. “They wanted to practice under the studio name. … and pull a specialist in forensic know how I’d do it.” “I was a silent partner in the labs out of the Phoenix office.” Six months after being laid off, business already, so it made a lot But Hausman said von Staden’s she was moving forward on the of sense,” she said. model works well for a startup firm. 244,000-square-foot design for the With the architecture world hurt Even with the small amount of Quicken project, working with by the recession, von Staden sees work in the Detroit market, von Pontiac-based Facility Matrix Group more firms adopting a structure Staden sees the chance to grow, es- and Birmingham-based Sachse such as hers, with one or two princi- pecially with some large projects Construction. pals who hire freelance architects. completed. Von Staden has kept her over- “We saw a lot of firms that can’t But the Quicken job was a game- head low, with just one full-time sustain the debt load or the over- changer. employee in the firm and free- head,” she said. “This is the model “Quicken took a risk on me,” lance architects hired for each that I think the industry is going to she said. “It’s an entrepreneurial project. adopt.” company, and they saw the chance “I tell people that they know The use of freelance architects to help me grow.” what I can do, but I can do it at a might work for an entrepreneur, Daniel Duggan: (313) 446-0414, lower cost than others because I but firms often have teams of ar- [email protected] 20100823-NEWS--0023-NAT-CCI-CD_-- 8/20/2010 5:43 PM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 23 Law schools: Application numbers up, jobs for grads down ■ From Page 1 are increasingly following alternative career paths rather than as- ENROLLMENT TRENDS piring to become first-year associ- I ... stress that ates at law firms. University of Michigan Law School government positions, 2 percent in Tuition 2010: $30,644 “ public interest. As some private practice 2009 applications: 5,407 Classes begin: Week of Sept. 6 you’ve got to be *Attributed to a change and reduction in prospects dry up, more graduates 2009 admitted class: 371 out-of-state applications received and Placement data: 85 percent of are turning to jobs in academia, 2010 applications: 6,382 reviewed. In-state WSU law applications 2009 graduates employed in pretty darn careful the public sector, nonprofits and grew modestly over the same period. February 2010, down from an 2010 admitted class: 375 average 92 percent in 2002-08 in pursuing a law public interest work, or are work- (estimated) ing outside the legal profession, class data compiled for a recent Tuition 2009: $43,250 University of Detroit Mercy American Bar Association deans said. degree. Because it’s Tuition 2010: $44,410 certification; 54 percent in private “What we are School of Law Classes begin: Sept. 7 practice, 23 percent in business now a $100,000 hearing more of 2009 applications: 1,926 Placement: 99.14 percent of and industry positions, 13 percent is some (gradu- 2009 admitted class: 281 in various government positions, journey. ates) who get a 2009 graduates “employed or continuing education” in February 2010 applications: 1,773 less than 4 percent each in public ” part-time, con- interest, academic and unknown or 2010, down from 99.8 percent in 2010 admitted class: 276 Lloyd Semple, University tract position on unclassifiable employers. 2008 class report; 71 percent in (estimated) of Detroit Mercy School of Law **As of July 31 a set contract, private practice, 14 percent in Tuition 2009: $32,090 and we’re coach- judicial clerkships, 10 percent in versity of Detroit Mercy School of Tuition 2010: $33,903 ing our students government jobs. Law, said 2009 graduate placement Classes begin: Aug. 23 Michigan State University that one way to in private practice is around play onto the Wayne State University Law School Placement data: 83.4 percent of College of Law 58 percent, compared with 56 per- Nussbaumer team is to take 2009 graduates employed in cent nationally. He also believes 2009 applications: 1,531 February 2010, up from 80.7 percent 2009 applications: 2,729 more Mercy students are gravitat- interest in these jobs,” Nuss- 2009 admitted class: 185 in 2008 class report. Mercy data 2009 admitted class: 288 baumer said. ing to public sector and nonprofit 2010 applications: 1,363* includes December 2008 to July 2010 applications: 3,466 “They still build experience, and work, a trend he attributes both to 2010 admitted class: 190 2009 graduates. Estimated 2010 admitted class: 292 there’s a better chance you’ll build 58 percent in private practice. the economy and the school’s own (estimated) Tuition 2009: $32,800 business and become the lateral Jesuit traditions. hire (at an established firm) when Tuition 2009: $23,713 Tuition 2010: $33,785 He also said the door hasn’t things recover.” Tuition 2010: $24,800 Thomas M. Cooley Law School Classes began: Aug. 20 closed completely on well-paid as- Nussbaumer and others said a Classes begin: Aug. 30 Auburn Hills campus only Placement: 98.4 percent of sociate positions at big law firms, growing share of students pass Placement: 83.1 percent of 2009 applications: 5,472 2009 graduates employed in but more might be forced to build through law schools without sit- 2009 graduates employed in 2009 admitted class: 154 in February 2010, compared with experience on their own as con- ting for the bar examination or February 2010, down from August 92.3 percent in the 2008 class; tract lawyers or solo practitioners, 44 percent in private practice, becoming licensed attorneys. 86 percent in 2008 class report; and look for a lateral hire later in 68.4 percent in private practice, 2010 applications: 5,548** 25.8 percent in business or their careers. Some 9.2 percent of national grad- 14.5 percent in business and 2010 admitted class: 160 industry positions, 9.3 percent uates work in non-attorney pro- industry positions, 1.3 percent in (estimated) government positions, 3.1 percent Mercy data compiled for the law fessions where law degrees are judicial clerkships, 8.6 percent in Tuition 2009: $28,740 nonprofit or public interest law. placement association showed that “preferred,” up from 6 percent in 16.6 percent of the 2009 class was 2001. not employed nine months after “The (juris doctorate) preferred ‘We’re sorry, there isn’t anything long, and how much of a ripple ef- bono programs at Detroit-based graduation. category can be non-legal profes- here for you.’ ” fect does that have on firms?” she Community Legal Resources, said his “I feel a moral obligation to talk sions where the JD is an asset like Susan Guindi, assistant dean of said. “Then I think we also saw a organization has seen increased to (students), and we don’t accept a specialized degree, such as an career services at the University of structural change in the profes- interest in referrals from newly anyone if we don’t think they can HR director with (labor law knowl- Michigan Law School, said the sion. More companies are finding minted attorneys looking for expe- graduate and pass the bar. But I edge), or jobs within a law school worst may be yet to come on the litigation has become too expen- rience representing nonprofits. also make sure to stress that handling career services, or gov- employment front. sive in some matters to make busi- “We’ve got a few job openings you’ve got to be pretty darn careful ernment jobs within the FBI “I think where you’ll start to see ness sense.” right now, and we’ve seen a in pursuing a law degree,” Semple where the bureau prefers a dean effect of the economy is in the Cooley’s data also indicates pri- tremendous increase in the num- said. “Because it’s now a $100,000 gree,” said Judith Collins, re- 2010 class (which reports data in vate practice accounted for only ber of related applications com- journey, and even when you leave search director for the law place- 2011). We had a higher percentage 54 percent of jobs for Auburn Hills pared to what would come in two here you might still have a long ment association in Washington. come back without post-grad offers campus graduates in 2009, com- years ago. A huge part of that is way to go.” from their firms,” she said. pared with 61 percent in 2002-08. At the economy, I’m sure,” he said. Chad Halcom: (313) 446-6796, “Those students summered in the same time, 13 percent of 2009 Lloyd Semple, dean of the Uni- [email protected] Summer job pool dries up 2009, but at the end of summer the graduates had government em- Then there’s the increasingly firms told them ‘You’re great, but ployers earlier this year, com- shrinking pool of summer associ- we just don’t have the business pared with an average 8 percent ate positions — which traditional- volume to justify bringing you for 2002-08. ly paved the way for jobs at big out.’ ” The national report says that firms. nearly 25 percent of 2009 graduate Eleven of the largest local law Placement delays jobs were temporary, a marked firms reported to Crain’s that this increase over past years, and aca- We understand that one summer they employed a com- Law schools collect their data demic employers made up a bined 48 students as summer asso- for the placement association record 3.5 percent of jobs, which ciates. That’s compared with 72 based on graduate responses to “may be accounted for by schools’ size does not ﬁ t all. summer associates at the same 11 their inquiries nine months after efforts to provide post-graduate firms last year and 78 two years graduation. job opportunities in a tight job ago. Students must have jobs related market.” Detroit-based Dykema Gossett to their legal education to count as More than 3,000 respondents PLLC and Miller, Canfield, Paddock employed. were past summer associates who We know this much is true: small clients become big and Stone PLC each reported their Wayne State reports 83.1 percent were deferred, but still count as clients and big clients still have small needs. summer classes were half the size of its 2009 graduates who respond- employed if their offers were not of 2008. ed were employed, compared with rescinded. Intellectual property law firms 86 percent of the 2008 class in early David Galbenski, president and So we approach every opportunity - large or small - as if Harness Dickey & Pierce PLC in Troy 2009 and 88.3 percent of its 2007 CEO of Royal Oak-based Americlerk our reputation is on the line. Because it is. and the Ann Arbor office of Chica- grads. Inc. doing business as Lumen Legal, go-based Brinks Hofer Gilson & Lione Cooley Law School reports 85 of said his outsourced legal services Contact Jones Lang LaSalle today. We’re the one each said they hired no summer its 2009 graduates were employed and staffing company had 37 per- associates this year, compared earlier this year, compared with cent more contract attorneys on company that ﬁts all your real estate needs. with five and two respectively in an average of 92 percent across assignment this month than the 2009. the 2002-2008 classes, in data com- same time in 2009, but would not “The classes that might be in the piled by Cooley for a recent Ameri- give specific figures. For real estate services: worst shape are the ones who grad- can Bar Association certification He also said a recent team of uated about a year or two ago,” process. document-review contract attor- James C. Becker Ronald J. Gantner, CPA said Robert Ackerman, dean of the Guindi said 99.1 percent of UM’s neys assembled for a project Market Director Executive Vice President Wayne State University Law law class of 2009 was “employed or launching this week was more + 1 313 967 4100 + 1 313 967 4105 School. “They probably thought continuing their education” — but than half entry-level employees they had positions where they even that was off from 99.8 percent less than three years out of law in 2008. school — which is typical for Lu- were (summer associates), then www.us.joneslanglasalle.com/detroit “There was a suppression of men project teams. they were deferred six months, © 2010 Jones Lang LaSalle IP, Inc. All rights reserved. and then after that they were told (mergers and acquisitions) for so Leor Barak, manager of pro 20100823-NEWS--0024-NAT-CCI-CD_-- 8/20/2010 5:07 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS August 23, 2010 Dealers: Surviving auto sellers find success at lower volumes ■ From Page 1 shut down — and then reopened. part of the local real estate land- Locally and nationally, the dealer NEW DEALER LANDSCAPE scape, with few reuses, though network for the domestic original- Buick franchises rub elbows several dealerships have found equipment manufacturers has been Killed, then saved new life. If you want to buy a Buick in urban and gave the Buick fran- cut to where it can be profitable, Ⅲ Lou LaRiche Chevrolet, In Detroit, the former Dalgleish Troy, there are two options with- chise back, but only after Somer- said Randy Berlin, global practice Plymouth Cadillac was purchased by Tech- in a half-mile of each other. set had started selling Buicks. director with Urban Science. Ⅲ Mark Chevrolet, Wayne Town as an incubator for technolo- On Maple Road, just outside of In an e-mailed statement, Tom If dealers can be profitable Ⅲ Tennyson Chevrolet, Livonia gy companies. now, when annual automobile the Troy Motor Mall, sits Somer- Wilkinson, director of corporate In Farmington Hills, the former set Buick GMC. On Maplelawn Dri- news relations for GM, gave only Ⅲ George Matick Chevrolet, sales are estimated at 11.4 million Redford Holiday Chevrolet was purchased for units, they will be even more ve in the complex to the south sits a broad overview. $1 million by the Steppingstone Cen- Suburban Cadillac Buick. “This is a unique situation Ⅲ Bruce Campbell Dodge, Redford profitable when sales increase to Ⅲ ter for Gifted Education to be used as former peak levels near 17 mil- Despite the effort to prevent brought about by the bankrupt- Village Chrysler Jeep, Royal Oak a charter school. The old show- lion units. dealerships for the same OEM cy,” he wrote. “We were winding Ⅲ Fox Hills Chrysler Jeep, room will become a classroom. “The contention, at the begin- from competing, the situation down one of the franchises and an- Plymouth The old service garage will be a ning, was that cutting the dealers was created when the Suburban other dealer picked it up, and then Ⅲ Livonia Chrysler Jeep, Livonia gymnasium. was a cost issue,” Berlin said. dealer was to be shut down and through our reinstatement In some cases, dealerships that “But it was really about stream- Somerset Pontiac was given the process the original dealer got his Currently closed closed are being used by existing lining the product offerings, and Buick franchise, say dealers fa- Buick franchise back.” dealerships. they’ve done that. The bottom line miliar with the situation. Representatives from both General Motors Serra Buick has purchased the is that the production capacity and General Motors Co. then recon- dealerships would not comment. Ⅲ Superior Cadillac, Brighton site where Joe Panian Chevrolet was the dealer network (of the domes- sidered the decision to close Sub- — Daniel Duggan Ⅲ Audette Cadillac, West once located. Sources familiar tic OEMs) are aligned to compete, Bloomfield with the deal say the land was sold and compete profitably.” Ⅲ Dalgleish Cadillac, Detroit for $6.2 million. Ⅲ Joe Panian Chevrolet, In Brighton, Brighton Mazda has Profits shift to overdrive Southfield taken the building that was used Some dealers still winding down Ⅲ Prestige Chevrolet, Ypsilanti by Superior Cadillac before it National car dealership net- Ⅲ Wink Chevrolet, Dearborn closed. works have impressed analysts Frost said he is considering a While six General Motors Co. cars from other GM dealers to CHRYSLER with profit levels. Fiat franchise from Chrysler for dealers — in addition to six Sat- keep on their lots until October. Ⅲ Birmingham Chrysler-Plymouth Bloomfield Hills-based Penske urn dealers — have been closed John Rogin Buick in Livonia, Inc., Troy his closed Hummer location in Automotive Group (NYSE: PAG), the Southfield. since the filing of the OEM’s Dick Morris Chevrolet in Walled Ⅲ Clarkston Motors Inc., second-largest dealer group in the bankruptcy, several more clos- Lake and Cauley Chevrolet in West Clarkston While the sale of car dealership U.S., posted net income of $29.2 land has been slow locally, sales ings are on the way. Bloomfield are operating but will Ⅲ Colonial Dodge Inc., East Pointe million, or 32 cents a share, in the Dealers placed on the so-called be closing soon, according to are picking up nationally said Ⅲ Joe Ricci of Dearborn LLC second quarter — a 47 percent in- “wind-down” list are allowed to dealers familiar with the situa- Ⅲ John Latessa, managing director crease, year over year — on $2.7 continue operating until October. tion and a list of dealers being Meadowbrook Dodge Inc., of the Southfield office of commer- Rochester Hills billion in revenue. While most Saturn dealer- closed on Edmonds.com. Ⅲ cial real estate firm CB Richard The results topped analyst ex- ships, for example, have closed, The three dealers have inven- Monicati Chrysler Jeep Sales Ellis. Inc., Sterling Heights pectations of 29 cents on $2.6 bil- several have continued opera- tories of mostly used cars and a Ⅲ Latessa is also lion revenue. tion. Saturn of Warren plans to con- few new cars. Mt. Clemens Dodge Inc., practice leader Clinton Township Fort Lauderdale-based AutoNa- tinue selling cars until the very Calls placed by Crain’s to all Ⅲ of the firm’s nation Inc. (NYSE: AN) posted a 36 end, said General Manager Kevin three dealers over the past three Russo Group Enterprises Inc. tional Automo- (Lochmoor Chrysler Jeep), Detroit percent increase in net income in Bilski. months have not been returned. Ⅲ tive Dealership the second quarter compared to “There are about 60 cars left in Also in the wind-down process Century Dodge Inc., Taylor Services group, 2009, with $50 million in income on the country,” he said. “We’ve got are Saturn of Clarkston and Saturn Ⅲ Tamaroff Dodge Inc., Southfield which consults $3.1 billion revenue. about half of them.” of Lakeside. SATURN dealers on how Nationally, the average net in- GM dealers are allowed to buy — Daniel Duggan Ⅲ Saturn of Ann Arbor to reposition come for a car dealership, before Ⅲ Saturn of Farmington Hills their property. Latessa taxes, was $279,000 for the first five troit 3 OEMs, said Daniell Patter- enue, and they’re seeing a return Ⅲ Saturn of Plymouth “Right now, months of 2010, nearly double the son, a principal specializing in car to profitability.” 70 to 80 percent of the reuses are Ⅲ Saturn of Southfield profit during the same period in dealership consulting in the The loss of competitors also Ⅲ auto-related,” he said. “New cars, 2009, according to a report issued Southfield office of UHY Advisors helps surviving dealers, he said, Saturn of Southgate used cars and auto-related retail- by the National Automobile Dealers Inc. especially in the Detroit market Ⅲ Saturn of Troy ers are using the sites.” Association. “Everyone is getting used to the where a large number of people HUMMER Latessa said new uses of dealer- The average profit margin is 2.3 market of 11 million (units) or so have employee discounts and want Ⅲ Detroit Hummer, Southfield ships vary from one local area to an- percent compared to 1.3 percent in in annual sales,” he said. “The to shop from one GM dealer to an- Ⅲ Hummer of Novi other, with no clear trend, though 2009, according to the report. dealers have reacted, and they other. some churches have been using the Locally, profits are returning to have their staff under control, ex- land in many rural areas. dealers, especially among the De- pense structure in line with rev- Winding down “One thing we are finding is that Competitors gone Ⅲ John Rogin Buick, Livonia municipalities are being very flex- The closings have eliminated Ⅲ Dick Morris Chevrolet, Walled ible and supportive of the use for situations where dealers were Lake these sites, whatever it is,” he said. competing with other dealers from Ⅲ Cauley Chevrolet, West YOU WORK HARD EVERY DAY. the same OEM. Bloomfield Major changes for owners In Dearborn, Les Stanford Chevro- Ⅲ Saturn of Clarkston WORK SMARTER BY THE MINUTE. let has historically competed with Ⅲ Saturn of Warren For the dealers, the changes Wink Chevrolet Co., just five miles Ⅲ Saturn of Lakeside have meant a major lifestyle away. change. At the end of June, Wink closed Asher Panian said he has start- Learn real-world business after losing an arbitration appeal. New ed a new business to help people Stanford saw an immediate jump, Ⅲ Frost Cadillac, Novi find cars rather than going strategies for success. Streamline said President Paul Stanford. Ⅲ Serra Buick, Southfield through a dealership. your accounting systems, “Right away, we started getting Panian was able to get an Inter- more service customers and in- Source: Crain’s research net URL for City of Cars, the name of generate more sales and learn creased sales,” he said. his father’s, Joe, first dealership. how to Facebook the right way. Stanford bought a billboard erships are within a half-mile of “There are people out there near the closed Wink dealership each other. (See story on this page.) who’d rather deal with us than deal Watch Business Education Minute advertising his dealership and But overall, the OEMs were able with a dealership,” Panian said. online today, a joint partnership of hired the service manager and a to eliminate many situations Frank Audette Jr., who has Crain’s Detroit Business sales person to use their relation- where dealers of the same manu- spent his entire life working for ships. facturer were competing, said Ur- the Audette Cadillac dealership his Multimedia Services and EMU. And the real benefit will come ban Science’s Berlin. father started, said it’s an adjust- – Dean David Mielke when GM sends a letter to Wink “The key is that these dealers ment to find something else as a customers informing them that can get back to dealing with their career. College of Business Stanford is the closest dealer. real competition, that being other “Not to mention, I have to find “People are going to gravitate to OEMs,” he said. myself a car,” he said. “I’ve been the closest dealer,” Stanford said. driving demos around, and now I In one rare case, the closings cre- have to buy one.” crainsdetroit.com/emu ated an even worse competitive Finding new uses for land Daniel Duggan: (313) 446-0414, landscape. In Troy, two Buick deal- Vacant dealerships are also [email protected] 20100823-NEWS--0025-NAT-CCI-CD_-- 8/20/2010 5:08 PM Page 1

August 23, 2010 CRAIN’S DETROIT BUSINESS Page 25 Tigers: Team’s payroll could get leaner next year www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] bined $22.8 million and who are no taxes, depreciation and amortiza- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- longer on the team. tion. 0460 or [email protected] POSSIBLE PAYROLL PLAYS FOR NEXT SEASON MANAGING EDITOR Andy Chapelle, (313) 446- “The Tigers should be better It’s believed Ilitch subsidizes the 0402 or [email protected] next year, if only because they’ll Here are some of the key factors Austin Jackson, shortstop Danny payroll spending with profits from ASSISTANT MANAGING EDITOR/FOCUS Jennette get rid a lot of these bad con- that will affect the Detroit Tigers’ Worth, and two potential second his Little Caesar Enterprises Inc. piz- Smith, (313) 446-1622 or [email protected] ENTREPRENEURSHIP EDITOR Michelle Darwish tracts,” said Gary Gillette, a De- player payroll next season: basemen, Will Rhymes and Scott za chain, which has estimated an- Welsh, (313) 446-1621 or [email protected] troit-based baseball author, co-edi- The team has its two best Sizemore. nual revenue of about $1.055 bil- COPY DESK CHIEF Gary Piatek, (313) 446-0357 or [email protected] tor of the ESPN Baseball players already locked up in long- Catcher Alex Avila makes lion. term contracts: first baseman slightly more than the minimum at ASSISTANT NEWS EDITOR Jeff Johnston, (313) Encyclopedia and board member of 446-1608 or [email protected] Miguel Cabrera (eight years, $405,000, and he could replace the Society for American Baseball Re- DATA EDITOR Anne Marks, (313) 446-0418 or $152 million through 2015) and current starter Gerald Laird, who Cash flow [email protected] search. pitcher Justin Verlander (five was signed to a one-year, WEB EDITOR Christine Lasek, (313) 446-0473, Right now, the team is on the years, $80 million through 2014). $3.9 million deal for this season If Ilitch buys the Pistons, which [email protected] WEB DEVELOPER Steve Williams, (313) 446- books for just $55.2 million in con- Three players no longer on the but is hitting just .195. on Aug. 9 he announced he’s inter- 6059, [email protected] tracts for 2011, and that includes team will have their salaries come Salaries also coming off the ested in doing, he also becomes the EDITORIAL SUPPORT Robertta Reiff (313) 446- long-term deals for Detroit’s best off the books: Dontrelle Willis books because the players will be sole beneficiary of 10-year cable 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- players. ($11.7 million), Nate Robertson free agents include pitchers broadcast rights deals worth a col- 1687 TIP LINE (313) 446-6766 ($9.6 million) and Adam Everett Jeremy Bonderman ($12.5 million) “They might not have to tinker lective $1 billion that the Pistons, REPORTERS too terribly much with what they ($1.5 million). and Bobby Seay ($2.4 million). Wings and Tigers signed with Daniel Duggan: Covers retail, real estate and have,” said Maury Brown, presi- The Tigers have a $7 million Players such as Ryan Raburn, Southfield-based Fox Sports Detroit hospitality. (313) 446-0414 or dent of Portland, Ore.-based Busi- club option they could exercise on Armando Galarraga and Zach in 2008. [email protected] infielder Jhonny Peralta, who was Miner will be in salary arbitration. Jay Greene: Covers health care, insurance and the ness of Sports Network, which in- Palace Sports is also believed to acquired in a trade from the environment. (313) 446-0325 or cludes a website devoted to the generate about $70 million in an- [email protected]. Cleveland Indians on July 28 after Chad Halcom: Covers law, non-automotive business side of baseball. “They third baseman Brandon Inge broke Pursued by Tigers? nual revenue separate from the manufacturing, defense contracting and Oakland may be biding their time to do basketball team. and Macomb counties. (313) 446-6796 or his hand. Insiders say the Tigers may pursue [email protected]. something as payroll flexibility Speculation is that Inge, a free two top free agents in the Forbes estimated the Pistons’ Tom Henderson: Covers banking, finance, presents itself.” agent after this season who now offseason: 2009 revenue at $171 million and technology and biotechnology. (313) 446-0337 or Ilitch has spent a combined $565 makes $6.6 million, could be its operating income at $47 mil- [email protected]. Tampa Bay Devil Rays outfielder Nancy Kaffer: Covers small business, the city of million on Tigers player salaries traded to the St. Louis Cardinals Carl Crawford, 29, a left-handed lion, third-best in the 30-team Na- Detroit, Wayne County government. (313) 446- and pro-rated signing bonuses soon, or even put on waivers. tional Basketball Association. 0412 or [email protected]. batter hitting .302 this season with Bill Shea: Covers media, advertising and from 2006 to the current season, ac- There’s a $15 million 2011 club a league-leading eight triples. He’s Ilitch knows his player costs marketing, entertainment, the business of sports, cording to Cot’s. option on outfielder Magglio coming off a six-year, $31 million and transportation. (313) 446-1626 or when it comes to the Pistons and [email protected]. Ilitch told reporters recently Ordonez, but it’s triggered only if contract and is expected to seek a the National Hockey League’s Detroit he starts 135 games or has 540 Nathan Skid: Multimedia reporter. Also covers the that he has been “a bit reckless” in $100 million deal over six or seven Red Wings, which he’s owned since food industry. (313) 446-1654, [email protected]. plate appearances in 2010 — years. Sherri Begin Welch: Covers nonprofits and spending in recent years on the 1982. impossible milestones because of Texas Rangers right-handed services. (313) 446-1694 or [email protected] baseball team he bought for $82 The NBA has a $58 million Dustin Walsh: General assignment. (313) 446- a broken ankle. He has 365 plate starting pitcher Cliff Lee, the 2008 million in 1992. salary cap in place for the 2010-11 6042 or [email protected] appearances this season but isn’t Cy Young winner when he was with “I’ll be a little bit more careful in expected back until the end of the LANSING BUREAU the Indians. He also was with the season, while the NHL’s cap is Amy Lane: Covers business issues at the Capitol, the future. It won’t stop us from season. And he turns 37 in Seattle Mariners this season, and $59.4 million. Baseball doesn’t telecommunications and utilities. (517) 371- spending, but we’ll be a little bit January. 5355, FAX (517) 371-2492, [email protected]. or on the year is 10-6 with a 2.77 ERA, have a cap. 115 W. Allegan, Suite 220, Lansing 48933. more careful,” he was quoted as Johnny Damon, who signed a 21 starts and seven complete Spending less on the Tigers is ADVERTISING saying when he announced that one-year, $7 million deal to play in games. He has given up just 10 likely part of the financial plan- Detroit this season, is hitting .278 ADVERTISING DIRECTOR Marla Downs, (313) team President Dave Dombrowski walks in 150 innings this year. Lee ning for a new joint Wings-Pistons 446-6032 or [email protected] and it’s uncertain if the team will and manager Jim Leyland would turns 32 on Aug. 30 and will be arena, too, Gillette said. SALES INQUIRIES: (313) 446-6052; FAX (313) try to re-sign him. He’ll be 37 in coming off an $8 million club option 393-0997 return in 2011. November. “(Ilitch) may take cash flow out ADVERTISING SALES Matthew J. Langan, Lori season. He reportedly will seek a Tournay Liggett, Tamara Rokowski, Kimberly The Tigers could have several deal that pays him $20 million a of the club and use it to fund a new Ronan, Cheryl Rothe, Dale Smolinski 2011 spending starters in 2011 making the season, which is on par with arena,” he said. CLASSIFIED SALES (313)-446-0351 league-minimum $400,000: Philadelphia Phillies starter Roy MARKETING MANAGER Irma Clark The team could cut back salary MULTIMEDIA MANAGER Alan Baker, (313) 446- outfielders Brennan Boesch and Halladay’s current contract. The 2010 fade 0416 or [email protected] spending to $75 million or $80 mil- EVENTS MANAGER Nicole LaPointe lion at the low end, or $95 million The look toward next season MARKETING ARTIST Sylvia Kolaski to $100 million, Gillette said. before being forced financially to National and local economic comes as the current Tigers cam- SALES SUPPORT Suzanne Janik, YahNica Crawford “At $95 million, they’re still the rebuild. woes reshaped sports spending. paign comes to a disappointing CIRCULATION Candice Yopp, Manager. Yankees of the A.L. Central,” he There is a risk of starting a ros- “More and more money was end. MARKETING COORDINATOR Kim Winkler They’re 10-25 since the All-Star PRODUCTION MANAGER Wendy Kobylarz said, which worries division rivals ter of young, cheap players. coming into the franchises until PRODUCTION SUPERVISOR Larry Williams break on July 13, surrendering Chicago and Minnesota. “The fans are not going to like this recent downturn in the econo- CUSTOMER SERVICE “They feel the that if they’re my,” said Raymond “Skip” Sauer, the division lead and playoff MAIN NUMBER: Call (877) 824-9374 or write Tigers are the not winning,” an economics professor at Clemson hopes because of poor play and in- [email protected] PAYROLL LADDER SUBSCRIPTIONS $59 one year, $98 two years. one club that Gillette said. University and editor of TheSportsEc- juries. Out of state, $79 one year, $138 for two years. Tigers owner Mike Ilitch has spent However, there’s not been much Outside U.S.A., add $48 per year to out-of-state will spend irra- Gillette said onomist.com blog. rate for surface mail. Call (313) 446-0450 or tionally,” he more than a half-billion dollars on he never The trend of a fan rebel- (877) 824-9374. said. “They player salaries since 2006. That’s thought De- now is smarter lion at the gate. SINGLE COPIES: (877) 824-9374. bought him a competitive team, REPRINTS: (800) 290-5460, ext. 125; (717) 505- troit’s spending spending. Going into might lose be- but not a world champion: If you get pushed 9701, ext. 125; or ashley.zander@theygsgroup cause they’re was sustainable “Most fran- “ Friday .com. Payroll Record TO FIND A DATE A STORY WAS PUBLISHED: outspent.” unless it won the chises are far out in the first round, evening’s game (313) 446-0367 or e-mail [email protected]. Going into 2006 $82.6 million 95-67 division title more prudent against the CRAIN’S DETROIT BUSINESS IS PUBLISHED BY this season, the 2007 $95.1 million 88-74 and went deep in the past cou- you don’t make much Cleveland Indi- CRAIN COMMUNICATIONS INC. most expensive 2008 $137.6 million 74-88 into the playoffs ple of years ans, the Tigers CHAIRMAN Keith E. Crain money. (High are averaging PRESIDENT Rance Crain payroll was the 2009 $115 million 86-77 every year. They than they have SECRETARY Merrilee Crain 30,598 fans at New York Yan- 2010 $133.9 million 58-63* haven’t, earning been. They rec- TREASURER Mary Kay Crain spending is) not 41,255-seat Executive Vice President/Operations kees’ $213.3 mil- a wild card and ognize that William A. Morrow lion, while the *Through Aug. 19 making it to the money increas- Comerica Park Group Vice President/Technology, Source: Cot’s Baseball Contracts sustainable unless Manufacturing, Circulation cheapest was World Series in es might not be through 62 Robert C. Adams the Pittsburgh Pi- 2006, but miss- there,” Sauer home games — Vice President/Production & Manufacturing they win the division Dave Kamis rates’ $39 million, according to ing the playoffs since then. said. 14th among Chief Information Officer Cot’s. “If you get pushed out in the The Tigers every year. MLB’s 30 teams Paul Dalpiaz and fifth in the Corporate Circulation/Audience Development Detroit is third, trailing the Yan- first round, you don’t make much declined to ” Director kees and Chicago Cubs ($144.3 mil- money,” he said. “It’s not sustain- make front-of- Gary Gillette, American Kathy Henry G.D. Crain Jr. Founder (1885-1973) lion). able unless they win the division fice personnel Society for American Baseball Research League. Last Mrs. G.D. Crain Jr. Chairman (1911-1996) It’s possible Detroit could have every year and go deep into the available for year, they aver- EDITORIAL & BUSINESS OFFICES: aged 31,693 over 1155 Gratiot Ave., Detroit MI 48207-2732; (313) as many as five starters in 2011 postseason. That stokes season comment. 446-6000 making at or near the league mini- ticket sales for next year (and oth- The team doesn’t disclose finan- 81 home games, 12th overall and Cable address: TWX 248-221-5122 AUTNEW DET mum of $400,000, and those young er fan spending).” cial information, but Forbes.com fourth in the A.L. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the players eventually will get better Detroit’s spending came amid reported in April that the fran- The Minnesota Twins led the third week of January, a special issue the fourth week of August, and no issue the third week of deals. the region’s worst economic reces- chise’s $188 million in estimated Tigers by 12 games going into the December by Crain Communications Inc. at 1155 sion in generations. The domestic revenue ranks 14th in baseball. weekend. “Unless there’s some Gratiot Ave., Detroit MI 48207-2732. Periodicals “Payroll is going to be restruc- postage paid at Detroit, MI and additional mailing tured more dynamically in wrap- auto industry’s continued recov- Forbes also says the Tigers had form of collapse, I don’t see Detroit offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation ping up young talent,” Brown ery will be another factor in pay- a $29.5 million operating income making the playoffs this year,” Department, P.O. Box 07925, Detroit, MI 48207- said, noting that the team is com- roll planning. loss for last season, the worst in Brown said. 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2010 by Crain ing to the end of the typical five- “That plays a large part in how the majors. It defines operating in- Bill Shea: (313) 446-1626, Communications Inc. All rights reserved. Reproduction or use of editorial content in any year baseball cycle of competing they move forward,” Brown said. come as earnings before interest, [email protected] manner without permission is strictly prohibited. 20100823-NEWS--0026-NAT-CCI-CD_-- 8/20/2010 5:56 PM Page 1 T

Page 26 CRAIN’S DETROIT BUSINESS August 23, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG. 14-20

dicated that just 11.8 percent The development work clude Detroit, Hamtramck, of the city’s residents held a Rock Holdings will take place mainly in Highland Park and Pontiac, Duggan quote bachelor’s degree or higher, Sterling Heights and Livo- AP reported. compared with 27.4 percent nia, where AM General’s Ⅲ Rick nationally. pulls out of engineering and product Snyder has But, she said, the grocer development center is won the en- too sweeping pays attention to who’s shop- based. dorsement ping at its stores, and an in- bond offering of the Small flux of Detroit-based shop- Business As- pers in the suburbs could Rock Holdings Inc., the COURTS sociation of for Schlichting bode well for an urban store- parent company of Dan Ⅲ Delaware bankruptcy Michigan front. Gilbert’s Quicken Loans Inc., Judge Christopher Sontchi in the 2010 reportedly pulled out of a gubernato- hen CEO Mike Dug- well-known executive to its told Van Buren Township- Snyder gan of Detroit Med- roster as it prepares for a Mom’s the word $300 million bond offering based supplier Visteon Corp. rial gener- W ical Center is center substantial round of venture last week, the proceeds of that it must restore health al election, AP reported. stage, he is a quote-making capital early next year. for marketers which were to be used for a and life insurance benefits Ⅲ The U.S. Department of dividend payment to share- machine. Terry Cross, a veteran angel Mothers wield more pur- for more than 6,500 re- Education says it’s giving holders. At a public forum last investor who was one of the chasing power than ever, ac- tirees, the AP reported. $16.8 million to Michigan to The offering was with- week on the pending sale of early in- cording to a new report from Ⅲ U.S. District Judge increase charter school op- drawn in favor of “more at- DMC to for-profit Vanguard vestors in Inforum and Waterford Town- Patrick Duggan has granted tions in the state, AP re- tractive alternatives,” ac- Health Systems Inc. of Google and ship-based Sphere Trending, the Michigan Department of ported. cording to a report by Ⅲ Nashville, Duggan made the the execu- while becoming a more pow- Transportation’s motion to Michigan education Bloomberg News Service. following remark: tive-in-resi- erful force in the business remand litigation with the officials identified 92 per- “The idea that nonprofits dence for community. Detroit International Bridge sistently low-achieving are serving the city of De- entrepre- Today’s mothers are more ON THE MOVE Co. back to Wayne County Cir- schools, more than 40 of troit well is flat-out wrong,” neurship at educated and more likely to cuit Court. them in Detroit, the AP re- said Duggan. He cited deci- Wayne State be employed than moms of Ⅲ Ann Arbor-based Domi- Ⅲ Former Detroit Deputy ported. Schools on the list sions by nonprofit hospital University, no’s Pizza Inc. has promoted Mayor Kandia Milton, 39, has will have about 90 days to Cross the past, the report found, groups, including St. John has joined and are delaying marriage Michael Lawton to executive been sentenced to 14 submit a turnaround plan Providence Health System, to the company as its interim and motherhood until later vice president and CFO. He months in federal prison to state officials. Those close hospitals in Detroit in- CFO. in life. previously was head of infor his role in a bribery that are rejected could cluding Riverview and Holy Cross said he will remain At the same time, mothers ternational business. He scheme tied to the sale of wind up under state con- Cross. with the company through succeeds Wendy Beck, who trol. are shopping more aggres- Camp Brighton to the Ⅲ Nancy possibly two rounds of VC sively, turning to new media has taken a position as ex- Chaldean Catholic Church in A study of the taxable Schlichting, fundraising and will help and social media for pur- ecutive vice president and 2007 for $3.5 million. value of real estate shows CEO of Hen- build up the pipeline of chasing recommendations. CFO of Norwegian Cruise that Southeast Michigan ry Ford clients for the firm. They are most often the key Lines, in Miami, Fla. lost $16 billion in value be- Health Sys- InfoReady is a spinoff of decision-making voice in the Ⅲ Dave Rexroth has been OTHER NEWS tween 2009 and 2010 — $7.2 tem, has Ann Arbor-based GDI Infotech home, the report found. promoted to chief meteorol- Ⅲ Michigan led 37 states billion from Oakland Coun- heard Dug- Inc. It collects information More than 70 percent are the ogist at WXYZ-TV Channel 7. in July payroll increases ty property alone, accord- gan make about new grants from feder- primary influence on house- He replaces the retiring Jer- with 27,800 jobs, the most ing to data released by the similar al, state and philanthropic hold spending, and working ry Hodak. since October, Bloomberg Southeast Michigan Council comments sources and alerts universi- Ⅲ Freman Hendrix has of Governments and pro- Schlichting wives bring in, on average, News Service reported. before. ty researchers and units of 42 percent of household in- been appointed to the board Ⅲ A groundbreaking duced by the Michigan State “There is some truth to government about. come. of Greektown Superholdings ceremony is set for today Tax Commission. what he said,” she said. Cross said the plan is to Sixty-five percent of stay- Inc., which runs Greektown for Troy-based Emagine En- Washtenaw County “Over the past 20 years, a close as early as mid-Febru- at-home moms have a house- Casino. As a result, he has tertainment Inc.’s $19 mil- showed a 4.9 percent loss number of not-for-profit hos- ary on a first round of ven- hold income of under resigned his position as lion movie theater and during the period; Wayne pitals have closed and moved ture capital funding of $8 $75,000, and just one in five chairman of the Detroit boutique bowling alley in posted an 8.8 percent loss; out of the community.” million to $10 million to mothers stay home. . Charter Revision Commission, Royal Oak. Macomb lost 10.2 percent; At Henry Ford, however, grow the company. effective Sept. 14. Vice Ⅲ Michi- Livingston 7.7 percent; and Schlichting said the system In July, it was announced Chairman Jenice Mitchell St. Clair 11.2 percent. gan Attor- Ⅲ spent $310 million to im- that Ted Dacko — who is Festival says gun vote Ford will fill the position ney Gener- Atlanta-based Delta Air prove its downtown hospital, credited with growing Ann not a big deal while a new commissioner al Mike Lines Inc. is adding three provided $173 million in un- Arbor-based HealthMedia Inc., is sought. Cox’s office nonstop flights a week from compensated care in 2009 to the point where it could be It’s OK to pack heat in said it does Detroit Metropolitan Airport to and opened five outpatient sold in 2008 to Johnson & John- public view at the upcoming not have a London’s Heathrow Airport centers. son for something approach- COMPANY NEWS starting Oct. 31. Ford Arts, Beats & Eats festi- timetable Ⅲ Bob Hoban, St. John’s chief ing $200 million — had val. Ⅲ Warren-based Art Van for when it The Michigan Office of strategy officer, said the joined InfoReady as a part- Royal Oak officials voted Furniture Inc. has acquired expects to Financial and Insurance Regu- Cox biggest need in Detroit is pri- time consultant. to allow licensed handgun Maddalena Design in Birm- conclude lation has received a $1 mil- mary care services. owners to openly carry their ingham to revive Art Van’s its review of the proposed lion grant to improve over- “We have worked to bring weapons at the event. Com- high-end Scott Shuptrine sale of Detroit Medical Center sight of proposed health Whole Foods rumor insurance premium in- access to primary care to the missioners last Monday brand. The new brand, to Vanguard Health Systems creases and to stop insur- city through partnerships not wholly off base struck down a festival con- named Scott Shuptrine Interi- Inc., a Nashville-based in- with primary care physi- ers from seeking unreason- The rumor that Whole tract clause that prohibited ors, will include design stu- vestor-owned chain, in a cians, federally qualified able rate hikes. Foods is eyeing Detroit guns at the annual Labor dios in eight of Art Van’s 33 $1.5 billion deal. DMC and health centers and our ur- seems to pop up on a regular, Day weekend event. full-line showrooms. Vanguard have said they gent care centers,” he said. biannual schedule. But Jon Witz, co-founder of Ⅲ Youngstown, Ohio- expect to close the deal by Schlichting said Duggan OBITUARIES Sadly, according to the or- the festival, said the al- based Thermal Ventures II LP, Oct. 1. has done a great job main- ganic grocer’s public rela- lowance and resulting media the parent company of De- Ⅲ Developers of the Ⅲ George Cantor, long- taining safety-net services as tions department, there’s no coverage has not put a troit Thermal LLC, is consid- Shops at Gateway Park pro- time local journalist and CEO at nonprofit DMC for truth to the story that’s been damper on the event. ering the purchase of the ject have asked Detroit’s author, died of prostate six years. circulating in certain circles “No sponsors, artists, mu- Greater Detroit Resource Re- Police and Fire Retirement cancer Aug. 13. He was 69. “It is a tough business in the past few weeks. sicians, restaurants or spon- covery Authority facility, System for a $30 million Ⅲ Jerry Flint, longtime au- whether you are a nonprofit But Kate Klotz, a Whole sors have dropped out,” Witz commonly known as the loan. The estimated cost of tomotive journalist and for- or for profit. Nobody has any Foods PR specialist, didn’t said. “We have informed pa- Detroit incinerator. the 330,000-square-foot re- mer Detroit bureau chief magic answers,” she said. pooh-pooh the whole notion. trons that the Royal Oak Ⅲ Sterling Heights- tail development, at 8 Mile for The New York Times, On Oct. 1, however, Dug- Would the chain ever con- City Commission voted to based General Dynamics Road and Woodward Av- died of a stroke Aug. 7. He gan may become head of a sider a location inside De- take out the ban (in the Land Systems and General enue near the Michigan was 79. for-profit DMC. This is the troit proper? It’s possible. event contract) because they Tactical Vehicles, a joint- State Fairgrounds, is esti- Ⅲ J. James Hasenau, who anticipated date when Van- When evaluating a poten- would have been in potential venture company it co- mated at $40 million. owned Northville-based guard will finalize its $1.5 tial site, Klotz said Whole violation of state law and a owns with AM General LLC, Ⅲ Michigan State Universi- Hasenau Homes, died of nat- billion acquisition of DMC. Foods also looks at competi- person’s rights. “The gun is- was awarded contracts ty has been awarded a $6 ural causes Aug. 6. He was tion, traffic, and the number sue has really been blown worth a combined $18.5 million federal grant to 91. Another big name of college-educated residents out of proportion.” million to develop an Aus- place computers in li- Ⅲ Nelson House, who in the area. That last indica- Proponents argued state tralian version of the Joint braries, public housing founded what became the joins InfoReady tor is potentially bad news law and the Second Amend- Light Tactical Vehicle, and centers, community cen- Woodward Dream Cruise, Ann Arbor-based InfoRe- for Detroit — U.S. Census esti- ment allow a person who is for refits and upgrades to ters and community col- died of cancer Aug. 12. He ady Corp. has added another mates from 2006 and 2008 in- licensed to carry a firearm. Abrams tanks. leges at locations that in- was 69. DBpageAD.qxd 8/16/2010 12:04 PM Page 1

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Off the radar City businesses shine D outside the limelight Cultural gems Creative efforts polish programs, buildings Grassroots leadership $2.50 05 Retail plans, urban agriculture bear fruit

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Buildings and Dirt Small Biz, Big For Immediate Table Talk – all things – A commercial real City – Nancy Kaffer Release – Bill concerning Detroit's estate blog written by blogs about news in Shea’s eclectic restaurant scene written Daniel Duggan with the city of Detroit and blog covers one by Nathan Skid. “My news, trends and Southeast Michigan’s topic Detroiters favorite places to eat gossip from Metro small business love ( and are rarely the fanciest or Detroit. community. sometimes hate): trendiest. I usually end SPORTS. up in the independently owned, sparsely decorated joints serving Get there at the best food in the city.” crainsdetroit.com/blogs 20100823-SUPP--0001-NAT-CCI-CD_-- 8/18/2010 5:58 PM Page 1

Vol. 26, No. 35 etroit has sparkling ABOUT cultural jewels, strong D grassroots leadership and inno- Table of contents THIS ISSUE vative businesses that many city dwellers Living and have never heard of. investing in This fifth annual supplement about life and Quirky hangouts the D was edited investment in the city seeks the path less traveled 2 From urban-chic restaurants by Assistant and taverns to a feather-bowling joint Managing Editor — the stories and assets that the spotlight tends Jennette Smith. to miss. The result: A look at hidden treasures It was designed and evidence of Detroit’s ongoing reinven- Off-the-radar businesses by Assistant tion. 6 In diverse industries, News Editor Jeff one-of-a-kind companies thrive Johnston. It was As part of a yearlong commemora- copy edited by tion of Crain’s Detroit Business’ Artisan hubs Copy Desk Chief 25th anniversary, this project Eleven institutions and organizations immerse Gary Piatek, centers on 25 elements that 12 Johnston and writers, artists and music lovers in culture Copy Editor Mark shape the D, and the Whitney. Articles transformational Cool office space were written by groundwork Crain’s reporters 14 Unusual urban offices and lofts Daniel Duggan, being laid for enliven new and old buildings Tom Henderson, its future. Nancy Kaffer, Retail revival Bill Shea, Shops find success along Nathan Skid, 16 Dustin Walsh, Woodward Avenue and beyond Sherri Welch and editorial intern Cries for change Shawn Wright. Movers and shakers champion social, Freelance writers 18 included Marti The popular event that celebrates Detroit and offers a transit and governance issues Benedetti, chance to experience a night in the D — the Crain’s De- Constance troit House Party — is back for its fifth act. Nonprofit leadership Crump, Trudy Plus, this year’s party features a Detroit design Institutions share ideas and resources Gallant-Stokes, 22 and lead economic development Maureen show. McDonald and The Sept. 29 event, planned in conjunction with Urban agriculture Natasha Smith. this issue, offers attendees the opportunity to visit BONUS MAP Photographers one of 26 lofts, apartments, condos and historic homes Community gardens bear fruit; were Skid, 25 in Detroit for cocktails and a tour, followed by an af- commercial-scale plans progress Urban Walsh, Wright Oases: The and freelance terglow at the College for Creative Studies’ A. Alfred Neighborhood successes best public photographers Taubman Center for Design Education. David Dalton, Reasons for optimism, from places and The afterglow includes cocktails, strolling dinner 27 Dave Lewinski, Eastern Market to Corktown not so well- John Sobczak and “Design in Detroit,” a first-time show featuring known spots and Glenn Triest. furniture and fine art made by a mix of Detroit-based Commentary to unwind, CRAIN’S DETROIT designers, including established shops and up-and- A reporter’s housing crisis pullout inside BUSINESS ISSN # 32 0882-1992 is comers. published weekly, The presenting sponsor is the Michigan State Hous- except for a special issue the third week ing Development Authority. of January, a special WEB EXTRAS issue the fourth Cocktail parties will run from 5-6:30 p.m., and the week of August, and afterglow will run from 7-10 p.m. Tickets are $50 a per- Guest columns: Designer Bethany Shorb and civic leader Lori no issue the third week of December son and include a one-year subscription to Crain’s. Heinz on their passion for the D, www.crainsdetroit.com/livingd by Crain Communications Tickets for the afterglow only are $45. For more infor- Video stories: Meet Ponsella Harding, grassroots activist; Inc. at 1155 Gratiot mation or to register, go to crainsdetroit.com/events. hear the underground story of Detroit Thermal LLC, Ave., Detroit MI 48207-2732. www.crainsdetroit.com/livingd Periodicals postage paid at Detroit, MI and additional Downtown mailing offices. POSTMASTER: Send Detroit viewed address changes to from Midtown CRAIN’S DETROIT

BUSINESS, NATHAN SKID/CDB Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2010 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is strictly prohibited. CRAIN’S DETROIT BUSINESS FALL 2010 Page 1 FALL 2006 20100823-SUPP--0002-NAT-CCI-CD_-- 8/18/2010 3:09 PM Page 1

LIVING IN THE D | QUIRKY HANGOUTS

Ryan Cady (left) and Mike Devereaux, both adjunct design faculty at the College for Creative Studies, have a beer over lunch at Northern Lights Lounge.

NATHAN SKID/CRAIN’S DETROIT BUSINESS Kitschy coup ‘Neighborhood bar’ stakes its claim on turf between biz centers

BY NATHAN SKID fessionals, artists, faculty and locals. While the lounge may not easily fit into a CRAIN’S DETROIT BUSINESS “We created a neighborhood bar before category, the sum of its parts makes for a the neighborhood arrived,” owner Mike So- quirky hangout. rban chic Northern Lights Lounge is a laka said. “It’s a very diverse bar — which It has a bar fare menu with appetizers destination neighborhood bar purpose- is a source of pride for me.” like calamari, nachos and chicken wings U ly positioned between business cen- Northern Lights, as in aurora borealis, is ranging from $6.95 to $8.50. It also features ters. supposed to be kitschy. Solaka, whose day hamburgers and sandwiches from $6.95 to It is at 660 W. Baltimore St. between the job is working as director of the New Center $7.50. New Amsterdam Lofts, College for Creative Council, said another way to think about “There is nothing like it downtown, and Studies, Wayne State University, New Center the bar’s atmosphere is combining the fu- that’s the point,” Solaka said. and TechTown — which gives it a varied turistic with an up-north feel. Northern Lights is open seven days a customer base. Northern Lights is outfitted with retro week from 11 a.m. to 2 a.m. and holds The lounge more closely resembles a furniture, a full-size shuffle board table, Ni- events every night, from live punk rock basement hangout than a neighborhood agara prints and dark woods. The tavern shows to karaoke. tavern, and it is almost always filled with also has won kudos for the design of its spa- Nathan Skid: (313) 446-1654, an eclectic group of hipsters, students, pro- cious restrooms. [email protected] Street cred: Café embraces Bohemian feel

BY NANCY KAFFER toyed with the idea of opening a gallery with what works for the community, what works CRAIN’S DETROIT BUSINESS retail space. for the kitchen,” Roy said. “It’s a mix of a lot “My partner (subse- of talents.” The Cass Café earns cachet for its neigh- quently bought out by The art, he says, has been a constant from borhood hangout authenticity. Roy) and I owned it for day one. Housed in an unassuming Cass Avenue about six, seven years be- “Before we opened, we hung an art show storefront just south of Forest, the 17-year- fore we actually devel- in there,” Roy said. “Thankfully, I always old restaurant has the allure of an authentic oped it,” he said. “Then had curators except for maybe the first four undiscovered neighborhood hangout. we kind of got the idea shows.” With a student-aged wait staff and a rotat- that we wanted to do a bar For years, the curator has been Dave ing art show on the walls, the joint has re- and restaurant in a neigh- Roberts, formerly of Urban Park Gallery in tained a distinctly Bohemian feel, despite borhood that by then I Greektown, Roy said. Roy the upward mobility of the neighborhood had grown to be a part of Annual sales are generally between around it. And that’s how owner Chuck Roy and had fallen in love with.” $750,000 and $1.5 million, “and closer to the wants it. The menu — from standbys like the middle,” he said, not a goldmine. “What the older folks call the Cass Corri- house-made lentil burger or the café’s signa- But Roy thrives on the authentic neigh- dor is Detroit’s version of Greenwich Village ture vegetarian lasagna — represents a pas- borhood clientele and atmosphere. “ The or Soho,” Roy said. tiche of the various cooks and kitchen man- people who come to our restaurant get it.” Roy bought the building on a land con- agers who have passed through. Nancy Kaffer: (313) 446-0412, tract as a recent college graduate. At first, he “The recipes are 17 years worth of picking [email protected] Page 2 FALL 2010 CRAIN’S DETROIT BUSINESS CDB Living In The D.qxp 7/30/2010 2:48 PM Page 1

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LIVING IN THE D | QUIRKY HANGOUTS Bowling ’em over Cadieux Café draws a crowd with Belgian game, mussels

BY NANCY KAFFER part of the sport is taking advantage of CRAIN’S DETROIT BUSINESS that curvature to land your ball in the right spot. Think bocce meets iceless curl- The Cadieux Café has been around for a ing meets horseshoes. long time. How long, no one’s quite sure. And, if you’re planning to try it, think At least since Prohibition, during which of calling ahead. Reservations fill up fast the east side bar and restaurant func- for the bowling lanes. Cherry weekend tioned as a speakeasy, says Paul Misura- spots fill up months in advance; less desir- ca, current owner of the café with uncle able weeknights are easier to book, re- Ron Devos. quiring just a few weeks’ wait. A few The bar’s history is just one part of its weeks? For a weeknight? allure, right next to mussels — and feath- Misuraca considers. er bowling. NATHAN SKID/CDB “Well, I can probably get you in quick- Lucy Frye, owner of Nandi’s Knowledge Café Feather bowling hails from Belgium, the er, but it won’t be a prime spot,” he said. story goes, where the farmhands of yore Just as there’s more to feather bowling competed to land round cheeses (a modern than meets the eye, there’s more to the feather bowling ball echoes the shape of a Cadieux Café than feather bowling. ‘Homemade’ large cheese wheel) closest to a feather. But The Devos family bought the Belgian such a simplistic explanation is like saying hangout back in 1962. Misuraca, born in soccer is about kicking a ball. 1964, grew up in the business under his There’s a whole knack to the game, as parents’ supervision. When his folks were bookstore Misuraca demonstrates on a sunny week- ready to retire in the ’80s, Misuraca and day afternoon: The earthen trenches along which each player rolls a ball curve, and See Next Page Nandi’s owner wanted a not-so-fancy meeting place

When Lucy Frye decided to open a book- Friday’s the night at D’Mongo’s store, it was simply because of her desire to share knowledge with those around her in BY NANCY KAFFER find a new location. the city she loves. CRAIN’S DETROIT BUSINESS The storefront sat vacant for years, but From the outside, Nandi’s Knowledge Café around it, downtown was reviving. which sits in a nondescript row of business- Quite by accident, Larry Mongo has be- “I’ll be honest,” Mongo said. “The de- es at 12511 Woodward Ave. in Highland come the proprietor of one of downtown’s mographics changed. Every day these tat- Park south of Davison, is easy to mistake for most exclusive venues. tooed, bicycle-riding kids would bug me anything but a bookstore. D’Mongo’s Speakeasy has been open — ‘Open, open!’ ” But once inside, the soft sounds of classi- about three years, but only on Friday And that’s how it happened. A bar- cal music and the distinctive smell of well- nights. The only word to describe the tender and other staff showed up to work. traveled books are unmistakable. joint is eclectic: Mongo is mid- The place was packed. And since then, “I wanted this place to feel like someone’s dle-aged, his core clientele things have just kept going. home,” Frye said. “I didn’t want it to be fan- young. The food, music and cy.” The club’s furnishings This is a Detroit-made place. furniture, Mongo said, The walls of the bookstore and café are are Left Bank shabby are a nod to underground filled with new and used books — some chic, but the menu offers Larry Mongo, D’Mongo’s Speakeasy jazz clubs of Prohibition, bought, some donated — and knickknacks chicken, ribs, black-eyed where a mutual love for and various forms of art. Its six tables are peas and collard greens — liquor and music led the only sign that Nandi’s serves food. Southern recipes handed down by Mon- blacks and whites to min- It has a modest menu featuring soups, sal- go’s slave ancestors. gle. ads, wraps and sandwiches from $5 to $8. And beautifully, inexplicably, it all The one-night-a-week club is “I wanted to create a meeting place where works. more of a hobby than a business — a labor people could talk about not only books but Mongo originally opened Café Joseph in of love for all involved. Like bartender whatever they want,” Frye said. “I like that the Griswold Street storefront in 1987. But Courtney Smith, who’s become D’Mongo’s we get black and white people in here talk- as the neighborhood declined, he lost in- de facto manager. She’s responsible for ing about everything from race and politics terest in the endeavor, turning the club the bar’s quirkiest drinks — Mongo calls to poetry.” over to his son, who renamed it Wax Fruit them “Courtney Concoctions” — and says Frye said her dream was always to create and featured acts like Kid Rock and Em- that the one-night-only format means a place where people would come to discuss inem, way back when. folks have something to look forward to, their love of books. Wax Fruit closed after Mongo mistook like a weekly get-together with friends. “I wanted to create a sort of homemade his son’s pals’ Turkish cigarettes for a “This is a Detroit-made place,” Mongo version of Barnes & Noble.” stronger substance and told his son to said. “It has nothing to do with me.” — Nathan Skid

Page 4 FALL 2010 CRAIN’S DETROIT BUSINESS FALL 2006 20100823-SUPP--0005-NAT-CCI-CD_-- 8/18/2010 4:51 PM Page 1

QUIRKY HANGOUTS | LIVING IN THE D

From Previous Page Devos took over. Pizza’s the equalizer at Supino Misuraca’s grandparents were the ones Eastern Market’s They are all there for one reason: the who expanded the café’s food offerings, Supino Pizzeria has be- pizza. adding the now-famous mussel dishes to come a favorite Owner Dave Mancini said he developed the menu. lunchtime hangout for his recipes while working as a physical Misuraca said sales those living and work- therapist. After prodding from his family range from $500,000 to ing in Detroit. and friends, he decided to open the pizzeria. Sometimes you $800,000 each year, an It’s a place where Supino Pizzeria sells pizza by the slice improvement over the hipsters in Converse — $2.75 for cheese or pepperoni, $3.25 for have to business’ performance All-Stars sit side by side the daily special — and whole pies with just after the economy with businessmen, ties toppings ranging from egg, speck and reinvent crashed, but not the draped over their shoul- roasted garlic to pepperoni and sausage. Mancini café’s peak. ders to avoid stains. — Nathan Skid yourselves. During Devos and Misuraca’s tenure, the Paul Misuraca, café has expanded its Cadieux Cafe live music offerings, at- Foran’s is just the ticket for many tracting a younger crowd alongside the old- A former Grand Trunk Railroad ticket businesses around Campus Martius. school Belgian regulars. station has made way for a quirky hang- Foran’s serves breakfast, lunch and din- He and Devos have set one major goal out in the heart of the city. ner and has some favorite menu items like Paying homage to the building’s centu- corned beef hash, $6.95; quiche and salad, for each year — improving security, updat- ry-old history at 612 Woodward Ave. just $7; and a variety of sandwiches ranging ing the parking, expanding the musical of- south of Campus Martius Park, Foran’s from $6 to $8.50. ferings — as the café works to stay rele- Irish Pub — with its 1900s architecture, With a Michigan-centric beer menu, all vant to a changing crowd. vaulted ceilings, brass trimming and dark of its taps feature a Michigan-made ale. “Sometimes you have to reinvent your- woods — has managed to retain a sense of Examples include Kalamazoo-based Bell’s selves,” he said. “And we may have to do history. Brewery Inc.’s Two-Hearted Ale and Mar- that down the road.” The old-style bar has become a favorite shall-based Dark Horse Brewing Co.’s Rasp- Nancy Kaffer: (313) 446-0412, meeting place for business professionals berry Ale. [email protected] and locals alike due to its proximity to the — Nathan Skid BUILDING A GLOBAL CREATIVE CENTER. GET READY DETROIT.

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CRAIN’S DETROIT BUSINESS FALL 2010 Page 5 FALL 2006 20100823-SUPP--0006-NAT-CCI-CD_-- 8/18/2010 3:08 PM Page 1

LIVING IN THE D | OFF-THE-RADAR COMPANIES

GLENN TRIEST Part of Display Group’s menagerie. Something to see Display Group makes a go of being all show

GLENN TRIEST BY TRUDY GALLANT-STOKES Michigan as longtime clients. Company revenue President Rick Portwood hangs SPECIAL TO CRAIN’S DETROIT BUSINESS was $2.5 million in 2009, down 10 percent from the out with Motown icons at his year before. But Portwood sees an uptick in busi- prop-making and graphic design ick Portwood loves going to work each day be- ness, and the company has branched out to add business, Display Group. cause he never knows what event design chal- services such as custom changeable logos for of- R lenge he is going to face. fice branding, and display shelving. It is also en- With one of the largest inventories in the Mid- tering into joint ventures to capture more of the west of cool props — items ranging from a replica fledgling movie industry dollars now growing in of Michelangelo’s David to a huge mahogany bar Michigan. — Portwood, president of Display Group, and his Clients started noticing the hardwood floors, staff of 16 full-time and 10 part-time set and graph- high ceilings and white columns in the 10,000- ic designers, are up to the challenge. Housed in a square-foot space on the first floor of the Display 200,000-square-foot warehouse west of downtown Group and asked if it was available for rent, Port- Detroit on Fort Street, Display Group is an event wood said. Studio DG was born, with several planner’s dream come true. bookings pending. While on-site parties are still In business since 1991, Display Group rarely ad- being planned, interviews for a movie trailer for Display Group vertises, instead working on world-of-mouth buzz the documentary series “Lemonade” were recent- has designed and referrals. ly shot at the location. Display Group’s services include basic pipe and Portwood is the second generation in the dis- and created a room draping for corporate meetings, elaborate theme play-design business. His family’s company, Dis- to look like heaven decorations and rental furniture for major events, play Creations, provided fixtures and created dis- large format graphics and signs, temporary and play windows for downtown Detroit department for the latest permanent displays for trade shows, and exhibits stores during the city’s former retail heyday. for museums. Recently it has designed and creat- Portwood put his own spin on the old family-busi- installation of the ed movie sets, including a room to look like heav- ness concepts, providing full-service design, cre- “Harold & Kumar” en for the latest installation of the “Harold & Ku- ation and production for his company. mar” comedy film series. Prospective clients are also invited to tour Dis- comedy film series. The group counts corporations such as Com- play Group to generate ideas — just don’t be sur- puware and Quicken Loans and nonprofits includ- prised at seeing some oddities like the life-size ing The Parade Co. and United Way for Southeastern model of an alligator at the end of aisle two.

Page 6 FALL 2010 CRAIN’S DETROIT BUSINESS FALL 2006 CDB Living In The D.qxp 8/10/2010 1:06 PM Page 1

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LIVING IN THE D | OFF-THE-RADAR COMPANIES

Detroit Thermal LLC, headed by President Victor Koppang, serves up steam to 146 city buildings and wants to add more. Blue Cross Blue Shield of Michigan joins the network in 2011. DUSTIN WALSH/CRAIN’S DETROIT BUSINESS Plenty of pressure Century-old underground steam power network hot for expansion

BY MARTI BENEDETTI water from one or more central naissance Center, Ford Field, Detroit VIDEO SPECIAL TO CRAIN’S DETROIT BUSINESS plants to create power. Detroit Ther- Public Schools and eight Wayne Coun- mal buys 75 percent of the energy it ty buildings. President’s perspective: Thirty-nine miles of piping snakes uses to produce steam from the District energy has been used in Victor under downtown Detroit, providing Greater Detroit Resource Recovery Au- cities throughout the world for more Koppang steam to 146 buildings. thority (also known as than 100 years. It powers the U.S. Capi- of Detroit Thermal LLC owns the steam the Detroit Incin- tol, the Mayo Clinic, about 1,800 build- Detroit pipes — and would like more down- erator) and the ings in New York City, the Kremlin, Thermal town buildings to use its under- rest from natur- the Texas Medical LLC talks ground energy system, built by De- al-gas provider Center and the about steam troiters in 1903. Integrys Energy We think we have a very robust future. University of power, the “We’re trying to educate the pub- Services Inc. in Texas, to name a Detroit Incinerator lic,” said Detroit Thermal President Ann Arbor. Victor Koppang, Detroit Thermal LLC few. and the Victor Koppang, who says the system Revenue has Detroit’s un- capacity of cuts energy costs, puts less strain on been steady. derground sys- 39 miles of the electrical grid and decreases the Sales totaled $34 million in 2008 and tem includes 3.5 piping under city’s carbon footprint. 2009 and are expected to be the same miles of tunnels, city streets, The steam system — source of the this year. When Blue Cross Blue Shield some as deep as 80 crainsdetroit white vapor seen venting from of Michigan comes on board as a client feet. It was hand-built after .com/livingd grates around city streets — was in 2011, Koppang expects a noticeable the turn of the 20th century, and owned and operated by DTE Energy’s jump in revenue. much of the handiwork remains se- Detroit Edison Co. subsidiary until Blue Cross signed a 10-year con- cure today. 2003, when it was bought by tract with Detroit Thermal for its “You could not recreate this now at Youngstown, Ohio-based Thermal downtown Detroit offices at 500 and any cost,” Koppang said. Ventures II, Detroit Thermal’s parent 600 E. Lafayette, said Helen Stojic, Scott Barr, Detroit Thermal direc- company. Detroit Thermal invested Blue Cross corporate affairs director. tor of business development, said $35 million to repair small leaks and “We expect that it will save money he’s upbeat about expanding the com- make the system more efficient. in both new construction and operat- pany’s client base. Competition in- Detroit Thermal is headquartered ing costs and can reduce emissions. cludes companies that choose to gen- in a multistory 1923 plant next to Ford We have been operating our own erate their own power using their Field. A trip to the basement reveals a steam energy system since the early own boilers, furnaces, chillers and tangle of hot steam pipes that send 1970s and chose Detroit Thermal as air conditioners in their buildings. power at a steady rate to commercial the best option rather than replacing “The system was built to support customers throughout downtown. our nearly 40-year-old on-site system.” 2 million people. We have tons of ca- It’s called district energy, a process Other customers include the Detroit pacity,” Koppang said. “We think we that uses steam, hot water or chilled Medical Center, Cobo Center, the Re- have a very robust future.”

Page 8 FALL 2010 CRAIN’S DETROIT BUSINESS FALL 2006 20100823-SUPP--0025-NAT-CCI-CD_-- 8/18/2010 3:07 PM Page 1

URBAN AGRICULTURE | LIVING IN THE D Farming the city Some gardens yield harvest while others take root

BY NANCY KAFFER AND SHERRI WELCH CRAIN’S DETROIT BUSINESS

n the one hand, urban farming is thriving in Detroit, with more O than a thousand established community gardens in place. But larger projects — including the sole proposed for-profit farm — are moving more slowly. The commercial Hantz Farms, the brainchild of financier John Hantz, is still in the planning stages. “It’s very complicated,” said Mike Score, president of the company. “Right now we have a B-plan for the farm, and we have had extensive dia- logue with the city about launching DAVE LEWINSKI our farm in the urban center of the Program manager Patrick Crouch (center) helps harvest vegetables and flowers at Earthworks Urban city.” Farm, a project by Capuchin Soup Kitchen. Score said outstanding issues include the agricultural zoning designa- tion and tax rate, and the scale of op- Collaborative nurtures garden growth erations of the proposed farm. (See related story, Page 26.) The Garden Resource Program Col- gardens in 2004 to 875 gardens in Meanwhile, the SHAR Foundation’s laborative, formed in 2003, brings to- 2009. planned 2,000-acre farm, Recovery gether the Detroit Agriculture Network, The program provides not only Park, is making progress, said Gary Greening of Detroit, Capuchin Soup seeds and plants to families and com- Wozniak, chief development officer at Kitchen’s Earthworks Urban Farm and munity gardens, it encourages par- SHAR, an affiliate Michigan State University with more ticipants to become part of groups of Self Help Addiction than 185 organizations to support ur- based on geographic areas. Groups Rehabilitation Inc. in ban gardens in Detroit, Highland hold resource meetings and a spring Detroit. Park and Hamtramck. and fall work day. “We have incor- The program has grown from 80 See www.detroitagriculture.org porated the entity Recovery Park Inc., would place newly released prisoners men. we have a letter of into paid fellowships that would teach “We’re still kind of getting every- intent for the land urban farming and business skills, thing together,” he said. “It’s an ambi- and buildings with said founder Harry Reisig. tious timeline, and we will see exactly Detroit Public Schools “We want to take two blocks in what life dictates.” Wozniak and the city of De- neighborhoods with high rates of men Established farms, like the Capuchin troit that is in negotiation at this returning from prison, and we want Soup Kitchen’s Earthworks Urban Farm, point, and as of last count, 50 different to build farms adjacent to those neigh- continue to thrive — and add new pro- organizations are partnering with us borhoods so they can learn small- grams. on this project,” he said. business skills while running an ur- Founded in 1997, Earthworks is per- SHAR plans to buy 180 acres of land ban agriculture project,” he said. haps the first nonprofit-organized ur- from the city of Detroit and Detroit Reisig said Replanting Roots is hop- ban farm in Detroit. Today the farm is Public Schools. The organization ing to work with another organiza- made up of eight gardens spread over hopes to have a food production facili- tion to launch a pilot project next 20 city lots within a two-block radius ty that will employ 150 in operation spring. The first year, the program of the Capuchin headquarters in east by this fall, with locally grown food could handle about eight participants, Detroit near Mt. Elliott. initially purchased through an un- he said, and would cost roughly Earthworks provides some of the named third-party company. $240,000 to launch outside of land ac- vegetables, small fruits, tree fruits, Another nonprofit farm in the quisition. The full-fledged farm, he works is Replanting Roots, which said, would accommodate 30 to 40 See Next Page

CRAIN’S DETROIT BUSINESS FALL 2010 Page 25 FALL 2006 20100823-SUPP--0026-NAT-CCI-CD_-- 8/18/2010 4:39 PM Page 1

LIVING IN THE D | URBAN AGRICULTURE

From Previous Page herbs and cut flowers it grows to Zoning, millage issues help feed people who come to the Ca- puchin Soup Kitchen. It sells some through a small farmers market it operates at the soup kitchen, delay Hantz Farms through the Grown in Detroit co-op and at health clinics. Earthworks how the draft ordinance would have to be also makes jam from harvested BY NANCY KAFFER CRAIN’S DETROIT BUSINESS modified so it allows large- and small-scale berries for use as a fundraiser. agriculture to take place within the city of And the farm recently launched A year ago, Hantz Farms officials thought Detroit.” the Earthworks Agricultural Training the plans for its large Detroit commercial ur- Score said Hantz is waiting for feedback program to “inspire people from our ban farm could be in production by now. from the city. neighborhood to see the potential The proposed farming venture is still How the ordinance is and develop the skills necessary to working to resolve major issues, such as the worded, he said, could not only fulfill future jobs in the lo- creation of an agricultural zoning designa- make or break the project cal food system but also to inspire fu- tion inside the city and the millage rate for — one of the working ture entrepreneurs interested in agricultural properties in Detroit. group’s initial proposals community-based food businesses,” Across the state, agricultural property is had been that for-profit said Lisa Richter, outreach coordi- taxed at a lower rate than other commercial farms should rent, rather nator for Earthworks in an inter- property. Essentially, explained Caleb Buhs, than buy, land from the view with Crain’s earlier this year. a communications representative for the city. The nine-month training program, Michigan Department of Treasury, qualified agri- “That would not be ac- in partnership with Gleaners Commu- cultural property “is exempt from the 18 mills Score ceptable in our venture,” nity Food Bank of Southeast Michigan, of the property tax, like a principal residence Score said. “Several of our enterprises started in April with eight trainees, exemption. If you’re looking for urban farm- would be a million or more in capital outlay, said Patrick Crouch, Earthworks’ ing in Detroit, to be a qualified agricultural and to make that kind of investment in prop- program manager. property, 50 percent of your acreage has to be erty that has a lease agreement introduces The economic piece — job train- used for agriculture.” unacceptable risks to the entrepreneur.” ing, enterprise creation and revenue A large-scale, all-agriculture endeavor For example, he said, a trellis system to — is part of a multilevel strategy would likely qualify, he said, as would many support a tree farm costs about $10,000 per that also includes youth education, community or small-scale gardens. acre. Planting about a thousand trees per improving access to fresh food and “If it’s a family home that, let’s say, is a acre costs roughly $21,000. community engagement. five-acre family home, and on three of those “I understand why the city would start the The program runs through the end acres you want to start a farm, then that discussion by asking is it possible for you to of November, Crouch said. would qualify,” he said. “If you had a five- lease a large block, because agriculture is “We know of at least one person acre lot and you wanted to farm three and new, but we will never understand how that’s already found a position work- put a hotel on two, then an assessor would large-scale agriculture works out if the oping within urban agriculture, and look to split up those parcels.” portunity is so temporary it doesn’t justify we are pretty certain we’re going to In 2009, Detroit’s tax rate for a business the capital outlay behind the project,” Score place at least two others in the next was 83.8 mills; the rate for a farm or primary said. months or so,” he said. “But a lot are residence was 65.79 mills. And the farm’s business model has had to interested in starting their own en- “You would have to file an affidavit with be flexible, he said. terprises, and (the program is help- your local assessor to get it reclassified,” Initially, Score said, the company as- ing the trainees) get their visions Buhs said. sumed that residents of distressed neighbor- and skill sets together.” Still under discussion is a draft ordinance hoods would be likely to sell, if offered a Community gardens are finding that would create urban agriculture zoning. good deal. But as Hantz Farms employees outlets for their goods in neighbor- The ordinance was produced earlier this have made contacts in neighborhoods, they hood farmers markets, like the year by a city Planning Commission work- found the reverse was true — the prospect of small-but-growing East Warren Av- ing group comprising city officials and com- a farm occupying now-derelict land has enue Farmer’s Market. munity nonprofit gardening and farming en- made the company’s chosen neighborhoods “Last week we had over 100 people deavors. Not participating is Hantz Farms. more attractive to current residents. at the market,” said Danielle North, “We asked to participate in that process,” “As we’ve gone door to door in the neigh- project manager for the farmers said Mike Score, president of the company. borhood and talked about the farm, people market. “We have some great ven- “The response from the Planning Commis- love our farm,” Score said. “We have yet to dors ... we have a couple of pretty sion was that in their experience, if larger find anyone who doesn’t like our farm … peo- steady local farmers there with their interests join in a community process of ple have hoped they’d hire them or their fami- produce, everything from redskin mapping out recommendations on a zoning ly, but they have also said they’re current on potatoes to tomatoes and beautiful, ordinance, it’s possible larger interests their taxes and have no desire to move. So delicious fresh produce to a woman would dominate the process. ... They asked if that’s made some changes to our model.” who makes jewelry.” we would not participate directly in the To get started, Hantz needs 20 to 30 acres, North said that the farmers mar- process but weigh in with written com- Score said. ket is able to accept EBT cards, ments.” “(That’s) enough to generate enough rev- which has helped its sales, and is Score said the Hantz Farms team had sub- enue to carry our costs, but our business preparing to start a state program mitted written comments, reflecting the plan right now is based on 200 to 300 acres in that doubles the value of EBT dollars company’s feeling that the draft ordinance first phase,” he said. “We’re committed to for shoppers and vendors. “addresses smaller gardens and smaller- rightsizing ourselves to the market.” Nancy Kaffer: (313) 446-0412, scale ventures but fell short of accommodat- Nancy Kaffer: (313) 446-0412, [email protected] ing larger-scale agriculture. We addressed [email protected]

Page 26 FALL 2010 CRAIN’S DETROIT BUSINESS FALL 2006 20100823-SUPP--0027-NAT-CCI-CD_-- 8/18/2010 4:30 PM Page 1

NEIGHBORHOOD SUCCESSES | LIVING IN THE D Recipe for growth Eastern Market’s $50M project includes community kitchen, upgrades

BY SHERRI WELCH food processing or catering business- CRAIN’S DETROIT BUSINESS es, Carmody said. Eastern Market is talking with the s part of a $50 million enhance- Michigan State University Product Cen- ment of the historic Detroit mar- ter for Agricultural and Natural Re- A ket, Eastern Market Corp. plans to sources about having a permanent begin work on a community kitchen employee at the market and commu- to help budding food businesses. nity kitchen to help create new food To date, the nonprofit that over- enterprises, he said. sees the 119-year-old market on De- The community kitchen and Shed troit’s near-east side has raised No. 5 renovations should be complet- about $13 million toward the project ed by the end of 2011 and likely will and has invested about $10 million of be followed by work on the whole- that in upgrades to two of the mar- saler’s dock — given U.S. Department ket’s five standing sheds completed of Agriculture interest in it, Carmody last fall, said President Dan Car- said — and the market hall in 2013. mody. Currently, the market is open for The project also includes plans for retail sales only on Saturdays. The a growers’ terminal and wholesale organization plans to offer con- dock and a two-story market hall — sumers and growers another retail with space for about 14 retail and day during the week beginning next food-processor tenants – to allow cus- spring, Carmody said. tomers to watch as foods like pasta The work on one of the country’s and ice cream are made. oldest farm markets is as much about Support for the efforts has come economic development as it is polish- through the city of Detroit, communi- ing another one of the city’s jewels, ty development block grant funds, the Carmody said. Troy-based Kresge Foundation, Battle If the region were able to buy just Creek-based W.K. Kellogg Foundation 10 percent of its food from local and the New York-based Ford Founda- sources, that would create about 5,000 tion. jobs, increase local business taxes by Eastern Market plans in January about $13 million and generate nearly to begin work on a third shed in the $125 million annually in household COURTESY OF EASTERN MARKET market, Shed No. 5, widening the income, according to 2009 estimates Eastern Market Corp. President Dan Carmody is overseeing projects at the sidewalks and putting in a large from the Ann Arbor-based Fair Food market that focus on economic plaza area for vendors and communi- Network. development. ty events out front, updating lighting In early August, the network an- and water systems and installing a nounced a $3 million challenge grant The program matches up to $20 of a large commercial community from the New York-based Open Soci- person’s food stamp or Bridge Card kitchen. ety Institute and Soros Foundations Net- purchases, starting with Eastern The kitchen will serve as a forum work to take statewide a Detroit pilot Market and four other farmers mar- for special events for the market, al- program to motivate low-income peo- kets in Detroit. low the market to expand cooking ple to purchase more locally grown Sherri Welch: (313) 446-1694, and nutrition classes and incubate fresh produce. [email protected]

Coalition backs northwest neighborhoods

BY NATASHA SMITH said the coalition is the community’s worked together for the common SPECIAL TO CRAIN’S DETROIT BUSINESS strength. good. The board includes representatives He said the development corpora- Undeterred by tough times, the from each of the five neighborhoods tion began when residents acknowl- Grandmont-Rosedale Development Corp. comprising Grandmont-Rosedale: edged that 20 vacant houses in the is preserving its community by focus- North Rosedale Park, Rosedale Park, neighborhood needed to be rehabili- ing on housing and public and com- Grandmont, Grandmont No. 1 and tated. mercial development within its coali- Minock Park. Over the years, the organization tion of northwest Detroit Even before the development cor- has added assistance with home re- neighborhoods. poration formed in 1989, Goddeeris Executive Director Tom Goddeeris said, the neighborhoods always See Next Page

CRAIN’S DETROIT BUSINESS FALL 2010 Page 27 FALL 2006 20100823-SUPP--0028-NAT-CCI-CD_-- 8/18/2010 4:38 PM Page 1

LIVING IN THE D | NEIGHBORHOOD SUCCESSES

Three of the eight assets

Physical Design Multiculturalism Cultural Economic & Walkability Development DAVID DALTON Executive Director Tom Goddeeris checks out the Grandmont-Rosedale Development Corp. farmers market, held Thursdays from 4 to 8 p.m. at Bushnell Better Communities. Better Michigan. Congregational Church. What will it take to create vibrant communities in the 21st century? The Michigan Municipal League’s “eight assets” lay the groundwork for successful placemaking. Through our Center for 21st Century We’re a very small organization, but Communities, Michigan’s leaders learn to leverage these assets, reclaiming our prosperity one hometown at a time. Become a part of transforming we’ll tackle just about anything if we Michigan at LetsSaveMichigan.com and learn more about our can do it effectively. programs at mml.org. Tom Goddeeris, Grandmont-Rosedale Development Corp.

From Previous Page pairs and foreclosure prevention assistance. In the Grand River commercial corridor, the coalition began a facade improvement program that has made 38 grants, jointly funded by the Local Initia- tives Support Corp. and the Mayor’s Office of 23077 Greenfield Rd., Ste. 107 Neighborhood Commercial Revitalization. Southfield, MI 48075 In 2006, the coalition began a farmers For questions please call market in the parking lot at Bushnell Con- gregational Church, where about 20 vendors Melissa Bouchard sell to crowds of 400 to 500 each week. Oth- 248-559-0700 ext. 108 er projects include neighborhood beautifi- www.theprofgroup.com cation, a community garden and park and playground renovation. Preferred Building Services, LLC And Grandmont-Rosedale is preparing to ramp up its housing efforts, with a plan Professional Building Maintenance, LLC to buy and rehabilitate 50 houses in the Professional Grounds Services, LLC next year. Starting with a $350,000 grant from the Kresge Foundation and a $650,000 Professional Plantscaping Services loan from ShoreBank Enterprise, Detroit, Colman-Wolf Sanitary Supply Co. Grandmont-Rosedale will take on 10 houses and is requesting $5 million in federal Janitorial Services ~ Grounds Care & Snow Removal Neighborhood Stabilization Program dollars to round out the first phase. Interior Plantscape ~ Janitorial/Paper Supplies The Ford Foundation, through the Detroit Economic Growth Association, is slated to We continue to prove how our contribute $350,000 to pay for the growing -experience -reputation staff needed to undertake the effort. Goddeeris admits it’s a massive plan. -reliability -alliance But, he said, it’s needed so the community -dedication -and ethics — whose 11 percent vacancy rate is relatively low for Detroit — can continue to be viable. strengthen the success of great collaboration. “We’re a very small organization, but we’ll tackle just about anything if we can do it effectively,” he said.

Page 28 FALL 2010 CRAIN’S DETROIT BUSINESS FALL 2006 CDB Living In The D.qxp 8/6/2010 10:32 AM Page 1

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LIVING IN THE D | NEIGHBORHOOD SUCCESSES An ‘oasis’ in downtown Historic Lafayette Park offers Mies homes, lush landscapes and quiet

BY BILL SHEA rose between 1958 and 1965. the best spot I’ve lived in my 30-plus years of CRAIN’S DETROIT BUSINESS The neighborhood was added to the Nation- living in and around Detroit and Ann Arbor. al Register of Historic Places in 1966. It’s close to everything downtown Lafayette Park has stood the test of time. The city maintains the park while (including grocery shopping), the The downtown Detroit neighborhood is cooperatives and private companies riverfront, Eastern Market and it’s widely considered one of the most successful own the residential sites. a great starting point for a nice bike urban renewal projects in U.S. history and The townhomes are largely hid- ride,” said Melissa Roy, the Detroit has remained largely unchanged by the rush den from outside view by lush land- Regional Chamber’s senior director of history around it — turmoil such as riots, scaping and massive trees that ulti- of government relations. shifting populations and the rise and fall of mately turn the neighborhood into “The community is wonderful — the city’s manufacturing sector. an island in the middle of Detroit. a great mix of residents who have The 78-acre mix of residences and park in- “The minute I pulled into been here since the townhouses cludes 21 multiple-unit Lafayette Park, I were constructed to those who have townhomes and is the prod- knew I was home,” Barlow moved in over the last five years. uct of a collaboration by said Toby Barlow, chief cre- The units are constructed in a way that Herbert Greenwald, a ative director at Dearborn- makes living very easy and so incredibly Chicago developer hired by based Team Detroit, the con- comfortable.” the city to create the neigh- sortium of five WPP Group The apartment residents have sweeping borhood, and Modernist ar- advertising agencies that views of the city. chitect Ludwig Mies van work on Ford Motor Co.’s “From the wall of windows in my Mies der Rohe — who, in turn, marketing. van der Rohe-designed apartment overlook- hired planner Ludwig “The place feels like an ing the Dequindre Cut, I can see the Detroit Hilberseimer and land- absolute oasis, not just River; I can also walk to the RiverWalk, scape architect Alfred Cald- from Detroit but from all Eastern Market, and anywhere in the cen- well to birth the project. the world’s nuttiness. Com- tral business district,” said Nicole Ruper- Mies van der Rohe, who ing home after work and burg, a local food blogger and critic. “I’m died in 1969, designed the unwinding in this sun-dap- close enough to all the downtown revelry to townhomes and three of the pled serenity just feels good enjoy it, but far enough away to escape it park’s five apartment tow- HOWRANI STUDIOS for the soul.” when I’m ready for some quiet time.” ers in his distinctive blend A townhome on Nicolet Place Those thoughts are Bill Shea: (313) 446-1626, of glass, aluminum and con- shows architect Mies van der echoed by other residents. [email protected] crete. All of the buildings Rohe’s signature modernist style. “Lafayette Park has been Shea is a resident of Lafayette Park.

Evolving Corktown keeps eye on Tiger Stadium site

BY NATASHA SMITH only challenge; the neighborhood has had Residents Council President Jeff DeBruyn. SPECIAL TO CRAIN’S DETROIT BUSINESS ups and downs in recent months as high-pro- Nancy Whiskey’s is set to reopen in days, file businesses Ladels Children’s Book Boutique about nine months after a fire closed the Corktown is the city’s oldest neighbor- and the Mercury Coffee Bar closed. popular nightspot. hood, and with an active population and Another bump came when the develop- Also soon to open is Astro Coffee and a thriving business community, it’s one of ment corporation suspended operations, coney island, both on Michigan Avenue, and Detroit’s most vibrant areas. following a steep decline in funding and DeBruyn is hopeful that a business will soon But these days, neighborhood advocates suspected embezzlement by a Corktown fill the former Mercury storefront. say, the future of Corktown depends large- employee. In the meantime, the residents council is ly on what happens at the corner of Michi- In existence since the 1970s, the develop- focusing on the community’s security, blight gan and Trumbull. ment corporation had numerous successes and beautification needs, DeBruyn said. Once home to Tiger Stadium, the cor- too, even in recent years. In 2006, the In the past 18 months, five houses have ner now is a large parcel of land where corporation completed the first been demolished and 30 houses have been residents occasionally engage in a phase of a building project in boarded up, he said. The neighborhood game of baseball for old-time’s north Corktown, resulting in 29 boasts a citizens patrol of more than 40 sake. The stadium was demolished new houses. Cooley said every community members that works with the last year. project attempted after that Detroit Police Department. Corktown’s best “(The site) is the No. 1 question of failed because of lack of funding. asset may be its social capital, DeBruyn the neighborhood,” said Ryan Cooley, But all is not lost in Corktown. said. who served as treasurer for Greater Cork- Established businesses like Slow’s The residents of the neighborhood have town Development Corp. until that group BBQ and P.J.’s Lager House continue to at- created an urban farm, he said, and plans closed in February. “It’s the make-or-break tract crowds, and new businesses contin- are on the horizon for a community of the neighborhood.” ue to open. Recent arrival Hoot’s on the Av- kitchen to manufacture and label local The Tiger Stadium site isn’t Corktown’s enue is often packed, said Corktown goods to be sold.

Page 30 FALL 2010 CRAIN’S DETROIT BUSINESS FALL 2006 CDB Living In The D.qxp 8/17/2010 4:05 PM Page 1

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LIVING IN THE D | COMMENTARY

ISTOCKPHOTO.COM

Tale of the tape Reporter’s quest to live in the D becomes stickier at every turn want to live in the D. suring me to sign a termi- My contractor, Jeff Martin of TKO But snafus, specifical- nation agreement and walk Home Maintenance of Warren, esti- I ly red tape and dealings away from the house for mated it would cost a minimum of with Fannie Mae, are mak- which I have a legal and $1,200 to repair the vandalism and ing it extremely difficult valid contract. another $1,000 to fix the rusted pipes. for me to buy a beautiful The house, which was After all this, the bank appraiser five-bedroom colonial- listed for $69,900, was fore- finally visited the house and valued style house in Arden Park- closed last December after it at less than the offered price. Now East Boston, just one mile the previous owners I must come up with another $10,000 north of Henry Ford Hospital walked away from a water- to close the deal because the bank and Detroit Medical Center. logged $264,000 mortgage. now won’t loan me enough money to Regardless of the road- Jay Greene Fannie Mae already had purchase the house. WEB EXTRA blocks, I am going to con- two previous potential Fannie Mae refused to lower the More tinue to pursue this house because I deals fall apart when my offer of price and threatened to keep my commentary: believe in Detroit and the impor- $80,000 was selected from among sev- $1,000 deposit if I don’t close on Guest tance of supporting what I consider eral bidders. time. columns on to be the downtown of Michigan. While a conventional loan could My agent, Karen Harlin of Century passion for The house is also pretty cool. take 30 to 45 days, a less common 21 Elegant Homes in Southfield, has the D by Bethany It has a beautiful front entrance 203(K) loan could take 60 to 90 days been extremely helpful in trying to Shorb, owner with a decorative brick wall, built-in or more, mostly because of all the ad- persuade, cajole and reason with and principal cabinets, a butler’s pantry and a ditional paperwork, including re- Fannie Mae and the realty company designer of master bedroom complete with Pe- ceiving a contractor’s estimate on to consider the big picture, reduce Detroit’s wabic-tiled fireplace. It has an en- repairs and completing a more-in- the price and give us a few extra Cyberoptix closed upper porch with an open pa- volved appraisal. days to close if we need it. TieLab; and tio beneath, a huge yard and a big Then came late July and the van- I also called Sen. Debbie Lori Heinz, tree perfect for a hammock. dals. The house was broken into and Stabenow’s office in Lansing, which president of However, since June 24, when my more than $600 worth of copper pipe had a staff member jump in to help GreenAcres Woodward offer was accepted by Fannie Mae, a was stolen. the cause. Civic combination of problems, ranging So far, the biggest delay has been There is still a small chance I can Association, from vandalism to an inability to problems with turning on the water close on the house today. But Fannie www.crains turn on the water for an inspection for my bank appraisal. Mae would have to give me a dead- detroit.com and appraisal, has created a situa- But other snafus beyond my con- line extension. /livingd tion in which I may not meet a 60- trol led to a two-week delay to set an So if I end up with the East Boston day deadline to close. appointment with the Detroit Water house, this adventure of untangling During the past several weeks, Board. The city worker looked at the red tape may prove to be worth it. Fannie Mae and a Commerce Town- pipes and refused to turn on the wa- Jay Greene: (313) 446-0325, ship realty company have been pres- ter because they were rusted. [email protected]

Page 32 FALL 2010 CRAIN’S DETROIT BUSINESS FALL 2006 CDB Living In The D.qxp 7/8/2010 11:38 AM Page 1

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