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DETROIT BUSINESS MAIN 05-15-06 A 1 CDB 5/12/2006 7:23 PM Page 1

http://www.crainsdetroit.com Vol. 22, No. 20 MAY 15 – 21, 2006 $1.50 a copy; $59 a year

©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved THIS JUST IN Golden OCC board to vote Mall titan to develop on $15M in renovations The Oakland Community College board of trustees is life expected to vote tonight on $15 million in renovation Locals remember and construction projects site near fairgrounds at its Auburn Hills campus. music producer The proposals under consideration would reno- General Growth plots Shoppes at Gateway vate the existing student Ed Wingate center at that campus to BY SHEENA HARRISON A brochure prepared for in- house relocated informa- BY BRENT SNAVELY CRAIN’S DETROIT BUSINESS vestor Bernard Schrott said the THE DEVELOPER tion-technology staff and CRAIN’S DETROIT BUSINESS Shoppes at Gateway would include a construct a new student Chicago-based General Growth 125,000-square-foot big-box store, General Growth Properties The death of Detroit Inc., a Chicago-based real center closer to the center Properties Inc., the nation’s second- four large retailers such as a book- music entrepreneur and estate investment trust. It’s of campus. largest retail real estate investment store or electronics store, up to businessman Ed the second-largest retail The projects would allow trust, has agreed to develop, lease four full-service restaurants and Wingate on May 5 was REIT in the nation. the college’s adminis- and manage a 325,000-square-foot more than 40,000 square feet of a source of both sad- trative staff to move retail center near the Michigan State space for small retailers. The pro- ness and happy into the rented Fairgrounds in Detroit, according to ject would be at the southeast cor- memories last week THE PLAN Rochester Hills an investor, a local retail consultant ner of Eight Mile Road and Wood- for many local mu- To develop, lease and building that previ- and an architect. ward Avenue. sicians who re- manage the Shoppes at ously housed informa- Jim Ryan, chairman of Farming- A partnership of six Detroit area member Gateway, a 325,000- tion-technology staff, businessmen, including Schrott Wingate’s Gold- ton Hills-based JPRA Architects, said square-foot retail center, to while $2.4 million worth and theater owner and developer en World record his firm and several others were include a big-box retailer, of heating and cooling up- Joseph Nederlander, has sought to label and his asked by General Growth to sub- restaurants and other small grades at the central office develop the 34-acre area since at in Bloomfield Hills, ap- broad business mit requests for proposals for the and large retailers. proved by the board in activities. site two weeks ago. See Gateway, Page 32 March, are completed. With a roster of artists that in- — Sherri Begin WINGATE’S HITS cluded, at one Songs from time or another, Wingate’s labels Edwin Starr, The included: Parliaments, SEEKING HEALTH ■ “Just Like Fantastic Four, CARE HEROES Romeo & Juliet,” J.J. Barnes, Lau- The Reflections. ra Lee, The Re- Loonie takes Crain’s Detroit Business is ■ “Oh, How flections and seeking nominations for Health Happy,” The Gino Washing- Care Heroes, a special section Shades of Blue. ton, Wingate Sept 4. Winners will be named ■ “Agent Double- in the following categories: built a musical O-Soul,” and “Stop powerhouse that ■ Corporate achievement in Her on Sight,” many viewed as health care: Honors a company both by Edwin May 12, 2006: 1 loonie = 91 cents that has created an innovative a threat to Berry flight Starr. health benefits plan or that has Gordy’s Motown solved a problem in health care Records. administration. Wingate, who was living in Las Ve- Rising Canadian ■ Advancements in health gas, was 86. Laura Lee, in an online care: Honors a company or guestbook attached to Wingate’s death individual responsible for a notice on the Web sites of the Detroit May 2, 2006: 1 loonie = 90 cents dollar could boost discovery or for development of Free Press and Detroit News, wrote, “I a new procedure, device or have Ed Wingate to thank for giving service that can save lives or me my first hit record ‘To Win Your improve quality of life. state’s tourism, manufacturing Heart.’ He will be truly missed.” ■ Physician: Honors a “Wingate told me before he passed physician whose performance is BY JENNETTE SMITH AND TOM HENDERSON considered exemplary. something I never thought I’d hear CRAIN’S DETROIT BUSINESS ■ him say. He told me how much he Allied health: Honors an Larry Hundt remembers the “insanely busy” days of the early 1990s when individual from nursing or allied loved me,” said Don Davis, chairman health fields deemed exemplary of First Independence Bank in Detroit. March 2003: the Canadian tour operator had customers clamoring for more shopping tours by patients and peers. “He told me he loved me like a son and 1 loonie = 65 cents into Michigan and New York. A panel of health care judges I told him I loved him like a father.” Those days are back. will choose the winners. In the 1960s Davis was a producer, The rising value of the Canadian dollar could be a boost to Michigan on Nomination forms are available songwriter and a publisher and some The value of the tourism, retail and manufacturing fronts. The exchange rate means Canadians at www.crainsdetroit.com. Click of his groups, including the Dramat- Canadian dollar — the have greater purchasing power in the U.S. In turn, it is expected to stop the “Health Care Heroes” under ics, recorded music on Wingate’s ‘loonie’— has risen in shift of new manufacturing business to Canada that has occurred in recent Crain Events. The deadline is record labels. comparison to the U.S. years because of cheaper costs there. June 21. dollar. See Wingate, Page 31 See Loonie, Page 33

Michigan gets a second look CRAIN’S LIST from national venture Largest computer service

NEWSPAPER capitalists, Page 11 providers, Page 20 DETROIT BUSINESS MAIN 05-15-06 A 2 CDB 5/12/2006 6:33 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS May 15, 2006

in Detroit was sold April 7 to an Sheriff’s Office, and the U.S. Attor- the 2007 North American Internation- shares as of May 1. THIS JUST IN investor group led by Wally ney’s Office to arrest bond jumpers al Auto Show. The site is expected — Sheena Harrison Wolff, an investor from Chicago and parole violators. to be up and running by early fall. ■ From Page 1 who also is a co-owner of Detroit She said the state also is send- A major factor in the award Suicide-prevention foundation restaurant Small Plates, said for- ing $1 million to fund overtime was that the Web site will allow Macomb Twp. center sold mer co-owner Dick Bell. The for Detroit police officers and staff members of the sponsoring to open local office group has a purchase agreement Wayne County deputy sheriffs. Detroit Auto Dealers Association to A Macomb Township shopping The Hendersonville, Tenn.- to buy the restaurant pending the — Robert Ankeny update content easily and without center was sold. The new owners based Jason Foundation in early transfer of the liquor license. any programming experience. plan to expand it. June plans to open an office at Jacoby’s Bistro To-Go, in the First Landus Development, T.H. Marsh Arbor enters VC agreement In addition to content and Havenwyck Hospital in Auburn National Building, has not been Construction Co. and Redico L.L.C. news, the site will integrate the is- Hills. sold and is not for sale, Bell said. Arbor Partners L.L.C., an Ann Ar- purchased the 60,000-square-foot suing of credentials and the sell- The foundation, which is affili- For now, Bell is continuing to bor-based venture-capital compa- center at M-59 and Romeo Plank ing of tickets and merchandise. ated with Psychiatric Solutions Inc., manage Jacoby’s until the liquor ny, has entered into an agree- Road and plan a 19,000-square-foot — Tom Henderson the Franklin, Tenn.-based parent license is transfered, Wolff said. ment to help find Michigan expansion next door. Construc- investments for Blue Chip Venture company of Havenwyck, pro- tion on the new Romeo Commons Bell said the restaurant sold for less than the initial $1.3 million Co. of Cincinnati, one of the Mid- Masco board OKs buyback vides suicide-prevention pro- development should start this west’s largest VC firms with $600 grams for students in grades 7-12, asking price. Wolff could not be Masco Corp.’s board of directors summer with a lifestyle center de- million under management. teachers and parents. sign, said Cary Gitre, principal of reached for comment Friday. has authorized a buyback of up to Arbor has more than $38 mil- Jason Foundation currently of- Auburn Hills-based Landus. The — Brent Snavely 50 million common shares, ac- lion under management, includ- fers its programs in a handful of partners are seeking tenants such cording to a company statement ing $32 million in a tech fund it Michigan schools. But it would as national specialty retailers and last week. State ups Detroit crime efforts raised in 1999. According to man- like to increase its presence, given “fast casual” restaurants, Gitre The new repurchase authoriza- Responding to Mayor Kwame aging director Don Walker, there that the percentage of teens in the said. Long-term, they also plan to is some money left in that fund to tion replaces an existing stock upgrade the existing center. Kilpatrick’s request in his state state who attempted suicide in the invest, but all of it will go to cur- buyback program, under which of the city message in March, past 12 months is 2 percentage The asking price on the shop- rent portfolio companies. about 34 million of 50 million au- Gov. Jennifer Granholm last points higher than the national av- ping center on a 9-acre site an- Blue Chip has opened an office thorized shares had been repur- chored by Manhattan Market was week announced she was order- chased. Taylor-based Masco erage of 8.5 percent, Director of ing Michigan State Police and the at Arbor Partners’ downtown Ann $8.4 million, said Joseph Sower- Arbor headquarters. Walker and (NYSE: MAS) reported about 397 Operations Jason Strickland said. Anton, Zorn & Sower- Michigan Department of Corrections by, partner at fellow managing director Dick million outstanding common — Sherri Begin by Inc to put added resources into north- . in Mt. Clemens and the bro- Eidswick have each added the ti- west Detroit and three other “hot ker on the deal. Total investment tle of Blue Chip venture partner. spots” of violent crime in the city. CORRECTIONS in the project is expected to be — Tom Henderson about $14 million. The seller was The program targets gun ■ An incorrect name was given for Kitch Drutchas Wagner Valitutti & Southfield-based RPP Associates. crime, especially parolees illegal- Sherbrook P.C. in a story and chart on Page 11 in the May 8 issue. In — Jennette Smith ly involved with weapons, offi- Plante & Moran lands addition, the figures in the table showing the percentage of women cials said. Web redesign for auto show overall reflect partners and associates, not just partners. Jacoby’s building sold The state police and parole offi- ■ A story on Page 3 of the May 8 issue misstated the cost of convert- cers will work with the city of De- Southfield-based Plante & ing an existing printing business into an AlphaGraphics franchise. The building housing Jacoby’s troit, the Wayne County Prosecu- Moran P.L.L.C. has been awarded The correct cost for a conversion is $105,000 to $503,000. German Biergarten at 642 Brush St. tor’s Office, the Wayne County the Web site redesign project for

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May 15, 2006 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S MSU sets sights on $150M INDEX

tiative is approved by Congress and Program targets opportunities in Eastern Europe rules for applying are announced, he wants to have done the homework BY TOM HENDERSON bloc countries. neering and Education Gateway. necessary to seek out federal funding CRAIN’S DETROIT BUSINESS The president has asked Congress Gov. Jennifer Granholm endorsed as quickly as possible. to approve $5.9 billion in funding for the program in a release Thursday, “We’re trying to get in position to A Michigan State University profes- the initiative in the 2007 federal fis- saying: “(It) is indicative of the take advantage of it,” he said. sor hopes to use the American Com- cal year that begins Oct. 1, and for state’s willingness to be an aggres- Maleck said the program is de- petitiveness Initiative that Presi- $136 billion over 10 years. sive player in the global economy. It signed to help shift Michigan from a dent Bush announced in his State of “That’s a huge amount of money. again signals to the rest of the world manufacturing-based economy to a the Union message in January to We just want to make sure Michigan that we have the business and intel- knowledge-based economy, by re- New leaf: Upturn in Michigan allows CMS to fund a five-year, $150 million job-re- gets its fair share,” said Thomas lectual know-how to compete and training white-collar and technical cut trees and noncore training program that would target Maleck, associate professor of civil contribute around the world.” workers who have been laid off or assets. Page 4. business opportunities and partner- engineering, of the new program, Maleck said the program has no terminated. “Most of the attention Small Biz Solutions: ships in Russia and former Soviet- called the Michigan Economic Engi- state funding, yet. He said if the ini- See MSU, Page 33 Benefits can make difference in recruiting best talent. Page 24.

These organizations appear in this week’s Crain’s Detroit Business:

Accuri Instruments Inc...... 16 Active Aero Group ...... 18 Alcos Inc...... 24 Amber’s Amber Properties Co...... 3 Ann Arbor Angels ...... 17 Arboretum Ventures ...... 13 ArborText Inc...... 11 Asterand plc ...... 15 Automotive Components Holdings . . 6 Avidimer Therapeutics Inc...... 11 Berry Moorman ...... 29 Bieri Co...... 32 lofty goals Blue Cross Blue Shield ...... 24 BlueGill Technologies ...... 13 Camelot Ventures L.L.C...... 18 Cleantech Venture Network L.L.C. . 14 CMS Energy Corp...... 4 $10.5M project adds to company’s growth Comerica Bank ...... 33 Comshare Inc...... 13 Deloitte & Touche ...... 33 BY ANJALI FLUKER Delphi Technology Inc...... 30 Detroit Economic Growth Corp. . . . . 3 CRAIN’S DETROIT BUSINESS AMBER PROPERTIES Detroit Regional Chamber ...... 33 Dickinson Wright P.L.L.C...... 21 Brothers George and Paul Amber Headquarters: Clawson. DMCVB ...... 33 Downtown Detroit Partnership . . . . . 3 created a niche by designing, building, 2005 sales: $5 million. DTE Energy Ventures ...... 14 acquiring and managing apartments Owners: Jerry and Allen Amber. EDF Ventures ...... 13 Endurance Ventures L.L.C...... 12 within a small radius of their Clawson Number of properties: 23. Energy Conversion Devices ...... 14 headquarters from 1960 through the Locations: Royal Oak (11), Clawson Ensure Technologies Inc...... 15 ePrize ...... 18 1980s. (10), Berkley (1), Troy (1). Esperion Therapeutics ...... 11 The late George Amber’s sons, Jerry Flagship Ventures ...... 11 Ford Motor Co...... 6 and Allen Amber, are carrying on his entire project is expected to be com- Fourth Wave Technologies Inc. . . . . 16 legacy by adding the latest trend in pleted within the year, he said. Friedman Real Estate Group . . . . . 32 rental housing — multistory units “There are folks that have job trans- Game Change Fund ...... 12 General Growth Properties Inc. . . . . 1 with exposed ductwork, steel stairs fers, or may only be in town for a cou- Great Lakes Angels Inc...... 16 and other loft-like features. ple years, and folks out of college that Great Lakes Crossing ...... 33 Halo Group ...... 24 Amber Properties Co. specializes in are just starting out who want new loft- HandyLab Inc...... 15 apartment and townhouse rental units style living in an urban area,” Amber Hendricks & Partners ...... 32 Jonathan Witz & Associates ...... 3 in Berkley, Clawson, Royal Oak and said. “We wanted to have a product for JPRA Architects ...... 1 Troy. And the company expects to see them. There really is no other loft-style Lear Corp...... 21 rental in the area in a price range that Lormax Stern Development Co. . . . . 32 growth of at least $1 million this year, Lorro Inc...... 29 thanks in part to an improving rental we think is quite competitive.” MEDC ...... 23 The company began with two em- Michigan State University ...... 3 market and a $10.5 million townhouse Miller, Canfield ...... 24 project now under construction in Roy- ployees — the elder Ambers — and a Motown Winter Blast ...... 3 al Oak. single complex, the Amber Oak Apart- NextEnergy ...... 14 ments in Royal Oak. It has since grown OESA ...... 33 The first phase of the project, which Plymouth Management Co. . . . 12, 13 DON KUREK through acquisitions and development Exposed ductwork inside the new Amber Oak Townhomes lends a loft-like feel to includes 36 units, is expected to be Quicken Loans ...... 18 to include 23 properties at 16 locations, RPM Ventures L.L.C...... 12, 13 the units. The $10.5 million project in Royal Oak is the latest venture for brothers completed by the end of the month, and Rubicon Genomics Inc...... 15 Allen (left) and Jerry Amber, whose father co-founded Amber Properties Co. 27 units are rented, Amber said. The See Amber, Page 32 SBAM ...... 24 Self-Guided Systems Inc...... 16 Sensicore Inc...... 15 Somanetics Corp...... 16 SpaceForm Inc...... 30 Spirit Shop Inc...... 17 STM Power Inc...... 18 Sun Communities Inc...... 18 SupplyOn North America Inc...... 11 TechTown ...... 30 University of Michigan ...... 11 Push is on to continue Motown Winter Blast Village Green Management Co. . . . 32 Wayne State University ...... 16, 30 Windward Associates L.L.C...... 16 BY ROBERT ANKENY Witz, also producer of the Witz, interviewed by phone last week while CRAIN’S DETROIT BUSINESS Arts, Beats and Eats Labor Day traveling in Ireland, said that working with the BANKRUPTCIES ...... 6 festival in Pontiac, hopes to Downtown Partnership is an important step be- BRIEFLY ...... 23 Motown Winter Blast, a success during Super Bowl work with the Downtown Detroit cause it will help establish a bond with downtown BUSINESS DIARY ...... 19 XL, could become an annual event for downtown Partnership and gain broad pri- businesses and major companies. CALENDAR ...... 28 Detroit. vate and public support for the “We think we can create a magical event that is CAPITOL BRIEFINGS ...... 6 With widespread support for continuing the CHRISTOPHER CRAIN . . . . . 8 event. a continuation of the excitement, with a slightly downtown carnival that had its tryout in 2005, CLASSIFIED ADS...... 26 “We have officially signed it smaller footprint and smaller budget,” he said. what remains is getting money and coordination, The 2005 event operated with a $1.8 million budget, DIVIDENDS...... 22 over to (Witz),” said Susan Sher- EARNINGS ...... 22 said George Jackson, president of the Detroit Eco- while the 2006 Super Bowl version spent $3 mil- er, former executive director of LETTERS ...... 8 nomic Growth Corp. lion, he said. City officials have estimated that $1.5 Witz the Super Bowl XL Host OPINION ...... 8 “We have the best guy around to lead this in million is needed to do it again. Committee, now working as a consultant. “I think OTHER VOICES ...... 9 Jonathan Witz,” Jackson said. “I think it’s important that Motown Winter PEOPLE ...... 10 Witz, president of Pontiac-based Jonathan Witz & he has every intention to keep it going. Even in Blast find a way to create excitement outside of RUMBLINGS...... 34 Associates Inc., which produced the first two Win- the worst weather conditions, there was a real SMALL BIZ SOLUTIONS . . . 24 ter Blasts, hopes to repeat the successes. hunger. Sponsors saw that, too.” See Winter Blast, Page 30 WEEK IN REVIEW ...... 34 DETROIT BUSINESS MAIN 05-15-06 A 4 CDB 5/12/2006 5:29 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS May 15, 2006 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES

Anniversary Sale Upturn in Michigan lets CMS cut through May 31, 2006 Free delivery with this ad within 50 miles trees — and noncore assets

BY AMY LANE their noncore international assets.” cur losses because its power-sup- CAPITOL CORRESPONDENT Most unregulated ventures that re- ply contract doesn’t allow for the main in CMS’ portfolio are stable, full recovery of its natural-gas fuel LANSING — A turn of tide in cash-flow-generating projects, she costs at current and forecast Michigan’s electric-choice pro- said. For example, CMS’ large Jorf prices. The partnership wrote gram is giving Consumers Energy Lasfar power plant in Morocco gen- down $1.2 billion of MCV property, Co. a side benefit: more money to erates more than half of Morocco’s plant and equipment; CMS’ share trim trees. electricity supply under a 30-year of that charge, after tax, was $385 Thanks in part to revenue from power-purchase contract. million. customers who have returned to its Shin said it’s in CMS’ favor to Charles Fishman, analyst with electric service from alternative have businesses independent of A.G. Edwards & Sons Inc. in St. suppliers, the Jackson-based utility Michigan’s economy. And CMS is Louis, said the Midland venture is doubling, continuing to target debt reduction, “used to be one of the most effi- Perimeter Twelve Oaks Mall, Novi, MI · 248-347-6889 from $20 million with a goal of reducing parent-com- cient plants around,” but it has to $40.3 million, pany and nonutility debt from the aged and now with high natural- its spending to current $2.5 billion to $1.5 billion by gas prices is losing money. He said upgrade distrib- the end of 2008. CMS’ total debt, in- he thinks the venture could file for ution, clear cluding utility operations, is $7.4 bankruptcy, an event that he said trees and con- billion and the company has a debt- would not have a material finan- trol vegetation to-equity ratio of 71 percent. cial impact on CMS but could gen- around its pow- Challenges include the high erate news headlines that could Ford & Earl Associates designed Rofin’s exhibit at the er lines. price of natural gas, which has hurt its stock price. “We’ve 2005 FABTECH International and AWS Welding Show Joos stressed not only Consumers Ener- In an interview last week, Joos stepped up our gy customers but the utility’s cash said the MCV’s “economics be- tree-trimming investments this flow. “We have to generate more come marginal with the type of year to improve our service,” said from the business, or borrowings natural gas prices that we’re see- “Ford & Earl’s creative Dave Joos, president and CEO of … to pay for that gas,” Joos said. ing today.” He has said that the vi- Consumers Energy’s parent CMS thinking, design talent, Sustained high natural-gas ability of MCV is continuously ex- Energy Corp. (NYSE: CMS). “Trees, prices are also affecting the future amined. and great service really and tree branches in interference profitability of CMS’ Midland Co- Another item analysts are made a difference." with our lines, are by far the high- generation Venture investment, for watching is the pending sale of est contributor to customer out- which CMS took a $385 million, Consumers’ west Michigan nu- ages in the state.” Jennifer Taylor $1.75-a-share noncash after-tax clear power plant. CMS is taking Funded by $28.3 million in a re- Sales & Marketing charge last fall. bids for Palisades plant and hopes Administrator cent rate increase and $12 million CMS has a 49 percent interest in to complete a sale in 2007. Rofin-Sinar Inc. from returning-customer revenue the partnership that leases and op- Joos said CMS expects the book gains, the aggressive line clear- erates the natural-gas-fired plant, value of the plant at the time the ance is one of CMS’ priorities this which produces electricity and sale closes to be a little more than year as it continues to focus on its steam. Consumers Energy is $300 million. DESIGN core electric and natural-gas utili- MCV’s main electricity customer. A condition of the sale is that the INN OVATIONS ty businesses and shed nonstrate- Under a 35-year contract that be- buyer offer a 10-year-to-15-year gic assets. gan in 1990, the plant sells electric- agreement “that we find attractive Joos will take that familiar mes- ity to Consumers and supplies for our customers,” for the utility sage to shareholders on Friday at electricity and steam to Dow Chemi- to continue purchasing the plant’s Projecting our clients’ visions CMS’ annual meeting. “Largely, cal Co. power, Joos said. Architecture-Interiors-Marketing Communications-Signage-Exhibits it’ll be that we continue to imple- The partnership that owns MCV Amy Lane: (517) 371-5355, alane@ ment the (back-to-basics) plan that in November said it expects to in- crain.com Contact: [email protected] | [248] 740-1754 we laid out several years ago.” The company plans this year to sell about $150 million in international assets, adding to a tally of STREET TALK more than $4.26 billion in asset sales since 2001. Joos wouldn’t THIS WEEK’S STOCK TOTALS: 22 GAINERS, 51 LOSERS, 8 UNCHANGED specify pending 2006 deals, but po- CDB’S TOP PERFORMERS 5/12 5/5 PERCENT Ge tential sales include a power plant CLOSE CLOSE CHANGE De YOU’LL BENEFIT FROM in India, distribution companies 1. General Motors Corp. $26.09 $23.18 12.55 Co OUR HISTORY. in Venezuela and Brazil, and pow- 2. Detrex Corp. 8.40 8.00 5.00 TR er-plant and gas-pipeline assets in 3. Covansys Corp. 14.06 13.44 4.61 Fo It was 60 years ago when we opened our doors to Argentina. Ca ichigan’s small businesses sound strategy and 4. TRW Automotive Holdings Corp. 28.03 26.85 4.40 offer M Word of the first 2006 sale came Mi advice on how to take advantage of post-war state 5. Ford Motor Co. 7.11 6.93 2.60 and federal tax incentives. last week, when Home Depot Inc. Co 6. Catuity Inc. 6.44 6.30 2.22 announced it was buying CMS Te Today, tax law is still the cornerstone of the 7. Michigan Heritage Bancorp Inc. 12.50 12.25 2.04 Raymond & Prokop practice. lending subsidiary EnerBank USA. Am 8. Community Central Bank Corp. 11.80 11.58 1.93 The 37-employee operation, based panies, and those facing audits and TechTeam Global Inc. 10.50 10.38 1.16 Healthy com our nearly 60 years of in Salt Lake City, provides home- 9. No investigations, still benefit from 10. American Axle & Manufacturing 17.78 17.60 1.02 So legal tax expertise. Our Tax Planning, Compliance & improvement loans that remodel- Ro Litigation Group continues to work on the forefront of ing and trade contractors can offer CDB’S LOW PERFORMERS 5/12 5/5 PERCENT tax law, shaping and challenging laws at all levels. And CLOSE CLOSE CHANGE Ch inimize your exposure during to their customers. we’ll always strive to m Ro litigation while pursuing favorable outcomes. Neither CMS nor Atlanta-based 1. North Pointe Holdings Corp. $11.45 $13.19 -13.19 Vis . C. Somanetics Corp. 16.12 18.14 -11.14 Raymond & Prokop, P Home Depot (NYSE: HD) disclosed 2. Pu Rockwell Medical Technologies Inc. 6.98 7.77 -10.17 You can build your business on our foundation. terms of the transaction. But Ener- 3. Ca for high profile clients.™ Bank isn’t a major CMS piece. 4. Champion Enterprises Inc. 14.63 16.28 -10.14 Pr The low profile law firm Some who follow the company 5. Rofin-Sinar Technologies Inc. 56.45 62.71 -9.98 Ar weren’t even aware it existed, and 6. Visteon Corp. 7.34 7.93 -7.44 EnerBank represents less than 1 7. Pulte Homes Inc. 34.42 37.05 -7.10 percent of CMS’ total revenue, 8. Caraco Pharmaceutical Labs Ltd. 12.00 12.90 -6.98 which was nearly $6.3 billion in 9. ProQuest Co. 10.66 11.45 -6.90 2005. 10. ArvinMeritor Inc. 16.19 17.29 -6.36 Catherine Shin, analyst at New I 48086 Source: Bloomberg News. From a list of publicly owned companies with headquarters 26300 Northwestern Highway 4th Floorw.raypro.com • Southfield, M York-based CreditSights Inc., said (248) 357-3010 • ww in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading CMS is “headed in the right direc- at less than $5 are not included. tion” and has “eliminated a lot of DBpageAD.qxd 5/10/2006 1:33 PM Page 1

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+1.PSHBO$IBTF#BOL /".FNCFS'%*$&RVBM0QQPSUVOJUZ-FOEFS"MM$SFEJU-JOFTTVCKFDUUPBQQSPWBM DETROIT BUSINESS MAIN 05-15-06 A 6 CDB 5/12/2006 5:23 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS May 15, 2006 Incentives sought for ex-Visteon plants

LANSING — Ford Motor expand Ford’s Southeast L.L.C., last year acquired 17 Visteon House Bill 6035, sponsored by House Bill 6034, sponsored by Bill Co. is lobbying for legisla- Michigan proving grounds plants, and six offices and ware- Rick Baxter, R-Hanover, would Huizenga, R-Zeeland, redefines tion that could help it and also are seen as key to houses in the U.S. and Mexico. For amend the MEGA law’s definition qualified high-technology business- bring new jobs and invest- turning plants formerly most of the sites, including plants of a full-time job to apply to such es that can receive MEGA credits to ment to Michigan and at- owned by Visteon over to in Saline, Plymouth Township, Uti- employees when plants are bought. include one or more sites at which tract buyers for former Vis- new owners who will con- ca, Milan and Monroe, Automotive “This is a way that you’re not the business or a subsidiary main- teon Corp. plants. tinue the operations. Components seeks buyers that will technically creating jobs, but you tains jobs. That could let Ford apply Two bills, passed by a “Given the current eco- continue to supply Ford with auto- are retaining jobs,” Baxter said. for a high-tech MEGA credit to keep House committee last nomic conditions and the motive components and systems. The bill does not automatically its proving grounds in Michigan. week and on a fast track challenges of the auto in- But in selling the plants, Automo- grant MEGA tax credits. Projects Pryde said the company is look- through the Legislature, dustry, we would be hope- tive Components expects the hourly would still have to go through the ing at consolidating its Michigan CAPITOL BRIEFINGS would expand the Michigan ful that these would move workers may stay with the compa- usual review and approval process. and Arizona proving grounds. If Economic Growth Authority Amy Lane forward quickly,” said ny as employees who could be But Della DiPietro, Automotive they are consolidated in Michigan, program and allow new Charlie Pryde, Ford’s gov- leased to the new plant owner. That Components’ director of public af- it could mean up to $40 million in types of projects to qualify for the ernmental-relations manager. would mean the new owner could fairs, said the availability of the new investment and up to 100 new MEGA single-business-tax credits. A Ford-operated business entity, not count the jobs as its own to meet credits is an important “sweetener” jobs, as well as retaining the 200 The bills could help retain and Automotive Components Holdings MEGA employment requirements. to selling the plants. jobs currently at the Washington Township site, he said. The bills’ supporters include General Motors Corp., Daimler- Chrysler Corp. and the Michigan Eco- nomic Development Corp. Wellness bills get Senate OK Health insurers could offer wellness coverage and rebates to employers whose workers participate in wellness programs, under bills passed last week by the Senate. Senate Bills 848 and 849, sponsored by Tom George, R-Portage, could promote healthy behavior and encourage employers to provide such programs, supporters say. “We definitely think it’s a good idea,” said Wendy Hofmeyer, director of health policy and human resources for the Michigan Chamber of Commerce. “Right now, in the small- group market, employers don’t see any sort of return on their dollar for implementing wellness programs.” Under the bills, rebates could be up to 10 percent of paid premiums. Comings & goings ■ Daniel DeGraaf has been named executive director and CEO of the Michigan Concrete Paving Association. He replaces Robert Risser, who has become executive director of the Concrete Reinforcing Steel Institute. ■ Tadarial Sturdivant is resigning as director of the Michigan State Po- lice, to become deputy director for the Wayne County Department of Chil- dren & Family Services. Amy Lane: (517) 371-5355, [email protected]

BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit May 5-11. oyster perpetual Under Chapter 11, a company files a 29mm lady-datejust pearlmaster reorganization plan that the court must approve. Chapter 7 involves total liquidation. Schaefer Collision Inc., 7109 Rosedale, Allen Park, voluntary Chapter 7. As- sets and liabilities not available. Cottage Inn Pizza-Taylor Inc., 7486 Meadow Lane, Ypsilanti, voluntary Chapter 7. Assets: $12,000; liabilities: $120,697.32. Innovative Group Global Inc., aka Richardson Sales and Consulting, aka Richardson Development Company, aka Refabco Screw Products, aka Re- fabco, aka Beaver Industries, 37900 Mound Road, Sterling Heights, voluntary Chapter 11. Assets and liabilities not available. OFFICIAL ROLEX JEWELER Alcar Electric Inc., 24401 Maplehurst ROLEX OYSTER PERPETUAL, DATEJUST AND PEARLMASTER ARE TRADEMARKS. Drive, Clinton Township, voluntary Chapter 11. Assets and liabilities not available. — Compiled by Laura Bommarito DETROIT BUSINESS MAIN 05-15-06 A 7 CDB 5/12/2006 5:11 PM Page 1

May 15, 2006 CRAIN’S DETROIT BUSINESS Page 7 Raymond & Prokop law firm to close this summer

BY ROBERT ANKENY manager.” talks had involved Detroit-based reached a business decision and Morris said today’s soft office CRAIN’S DETROIT BUSINESS The demise of the firm reflects Clark Hill plc. Maureen Conway, followed through on it.” market poses a challenge to the difficulties faced today, by profes- Clark Hill marketing manager, One possible factor is the 10-year building, but it is in a good loca- Southfield-based business law sional firms as well as manufac- said the firm does not comment on lease through March 2010 on its tion and has a good design. firm Raymond & Prokop P.C. will end turers, in keeping a nimble busi- whether there have been merger quarters in Oxford Pointe Office Nemeth called the offices “a pre- operations soon, managing part- ness plan to adjust to changing talks with other firms. Center at 26300 Northwestern Hwy. mier location and a great build- ner Eric Nemeth said. market conditions. Nemeth said, “We are starting to According to CoStar, a real estate ing,” and said the firm is currently “June 30 is at least a tentative Nemeth said the firm had been in get some departures, and we’re information database, Raymond & in discussions with the landlord, date,” Nemeth said, “but we’ll merger talks recently but “the deal still assessing how to proceed.” He Prokop has 39,000 square feet Troy-based Kirco. “I can’t comment know a lot more did not materialize.” He declined to said some lawyers are finding indi- leased. Space in the building cur- at this point, because a number of next week. We identify the other firm or firms. vidual spots while others may relo- rently leases at $20 a square foot. things are in flux,” Nemeth said. are still in some Robert Forrest, a former Ray- cate in “subsets,” but declined to When Oxford Pointe was built in Kirco could not be reached for detailed discus- mond & Prokop equity partner, discuss specifics. April 2000, rental rates for newly comment on Friday. sions, and left last October after 23 years with Nemeth said the dissolution of constructed office space were $23 Jennette Smith also contributed things are a lit- Kerr tle sketchy. the firm to join Detroit-based the firm was caused by “a combi- to $24 a square foot, said Steve to this report. Russell and Weber plc GVA Strategis “We’re work- . nation of events, and is a reflection Morris, principal at Robert Ankeny: (313) 446-0404, He said the most recent merger on the marketplace today. We in Southfield. [email protected] ing real hard to find the best fits and opportuni- Nemeth ties for a lot of very good people,” he said. “But I can’t comment on any of those until things are signed and approved.” Collapse of the 60-year-old law firm has more than 30 lawyers and dozens of secretaries, paralegals and other support staff seeking - #!2% 4HERIGHTANSWERSFORALLYOURHEALTHPLANNEEDS new jobs. Karen Yancura, the firm administrator, on Thursday sent a mass e-mail to members of the Associa- tion of Legal Administrators Metro De- troit Chapter. Her e-mail asked her peers at other law firms for help in placing the soon-to-be unemployed staffers. The missive said, in part: “Raymond & Prokop has decided to discontinue the entity. We have a really great, knowledgeable and enthusiastic crew of people,” she wrote, detailing positions and skills of secretaries, paralegals and accountants. “Last but not least, one firm administrator and one human resources/facilities

EMERGENCY PREPAREDNESS WORKSHOP SET FOR MAY 23 “Is Your Business Bird-Flu Prepared?” is the question asked by the ESD: The Engineering Society of Detroit’s May 23 Emergency Preparedness Workshop in Pontiac. As the government and the health care industry prepare for a possible flu pandemic, the following professionals will help businesses prepare their own emergency response plan if the flu or another disaster strikes: Gary Mach, associate, quality administrator, Harley Ellis Deveraux; Mike Loper, emergency management specialist, Oakland County Emergency Response & Preparedness; James Buford, director of Homeland Security, 7HATSAlVE LETTERWORDFORACOMPANYTHATOFFERSACOMPLETEHEALTHCARESOLUTIONFOR Wayne County; and Lynne Osborne, manager of health & safety YOUREMPLOYEES )TS- #!2%/URCOMPLETELINEOFPRODUCTSINCLUDES(-/ 0/3 workplace programs, American Red 00/ ANDOURNEW(EALTH3AVINGS!CCOUNT(3! PLANS )MAGINEmEXIBLEPLANSWITH Cross, Southeastern Michigan. LESSHASSLEANDLESSPAPERWORK9OUREMPLOYEESWILLHAVEACCESSTOEXTENSIVEPROVIDER Crain’s Detroit Business is a NETWORKS!NDYOULLHAVEONLYONEPHONECALLTOMAKEFORANSWERSTOALLYOURQUESTIONS workshop sponsor. The workshop is 7 a.m.-noon at the 4OlNDOUTWHATMAKES- #!2%THERIGHTANSWERFORYOURCOMPANY TALKTOYOUR Marriott Centerpoint in Pontiac. AGENT ORCALL- #!2%AT OR 9OUCANALSOEMAILUSAT Cost is $75 for ESD members, QUOTES MCAREORGORVISITUSONLINEATMCAREORG $95 for others, or $142 for nonmembers to join the society and attend the workshop. For more information and to - #!2%00/ISAPRODUCTOFTHE-ICHIGAN(EALTH)NSURANCE#OMPANY AWHOLLYOWNEDSUBSIDIARYOF- #!2% register, visit www.esd.org, or call Nancy Strodl, (248) 353-0735, Ext. 4152, or e-mail -ORECHOICES/NESOURCE [email protected]. — Joanne Scharich DETROIT BUSINESS MAIN 05-15-06 A 8 CDB 5/12/2006 4:40 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS May 15, 2006 OPINION New video rules must protect public obbying is fast and furious over rules that could change the way Michigan regulates companies selling video ser- L vices to consumers. The battle pits local governments and cable TV companies (which already sell Internet-based phone services) against AT&T, which wants to start selling video services without having to jump through the legal hoop of negotiating with every municipality in Michigan to do so. The state Legislature is considering legislation that basi- cally supports AT&T’s quest. AT&T hopes to bundle all services — phone, Internet, video and more — just as Comcast does (Comcast’s first-quarter net income tripled this year in large part because of the increase in bundled-service revenue). Clearly, for these telecom heavyweights, much is at stake. Michigan simply could punt this to the feds; Congress is considering its own version of video-franchise legislation. But if a state law is passed, these provisions should be included: ■ First, public-access cable stations are one of the great public benefits of requiring cable companies to negotiate fran- chises with individual local governments. From televised local LETTERS government meetings to oddball programming, public-access channels have served an important public purpose. Their funding should continue. So should some version of “franchise fees” based on the provider’s gross revenues. That’s the quid So why computers, exactly? pro quo for access to public rights-of-way. Editor: affected. However, the mom-and- ■ Second, legislation should offer an overall template for a Crain’s Detroit Business In regard to your April 17 arti- welcomes letters to the editor. pop computer dealers, of which protocol for access to those rights-of-way. It makes no sense to- cle, “Retailers leery of state com- All letters will be considered for there are hundreds in this state, day to require AT&T — or any other company — to deal with puter buying plan,” the state of publication, provided they are are likely to be devastated. hundreds of local government units one by one. On the other Michigan should consider the fol- signed and do not defame While studies have shown that lowing. According to the state’s individuals or organizations. most new jobs are being created by hand, if AT&T or any other company violates that template, reasoning, employees need com- Write: Editor, Crain’s Detroit small businesses, this poorly con- there should be stiff penalties that would go directly to the lo- puter skills to get a job in the fu- Business, 1155 Gratiot Ave., ceived plan shows once again why cal government unit. Cable providers say a master statewide ture, and one way to improve these Detroit, MI 48207-2997. it is so hard to be a successful E-mail: [email protected] franchise is unfair because they went through the ordeal of skills is to have the state become, small business in our fine state. in effect, a computer dealer. Message boards: Share your Combined with higher minimum franchising one city at a time. The only way to void those pacts If this is true, I contend that these views in our online community. wages, and the onerous SBT tax, it would be an act of Congress, so that’s another reason to seek a same employees will also need cars forums.crainsdetroit.com. is no wonder why Michigan has federal solution in the first place. to get to those jobs. Why doesn’t the one of the highest unemployment doesn’t the state get into the food ■ Third, any company that seeks public right-of-way access state of Michigan put out a contract rates in the country. to purchase 100,000 cars and trucks distribution business? We all know Terrence Weadock to deliver a service should be required to offer products that from Ford or GM, and then sell them that without a full belly, employees President Dominant Systems Corp. give comparable service to all potential customers at roughly to all comers (businesses or individ- will not perform at their best. And Ann Arbor the same price. In other words, if AT&T doesn’t offer a fiber uals) so that we are all guaranteed of course we all need gasoline. Why network to reach all households, it should offer other options lower-cost transportation? Of course doesn’t the state contract to pur- U.S. myopic about oil the actual contracts to deliver these chase several hundred million gal- Editor: — satellite or wireless — to offer the same service. vehicles will likely go to the larger lons of low-price gasoline and then I applaud Keith Crain’s May 1 ■ Fourth, if the Michigan market is so lucrative, why not car dealers, leaving the rest of the distribute that through hand- column, “They are nothing more dealers to wonder where their cus- use this fight as a platform to encourage investment not just in picked retailers? than alibis.” (May 1) The Crain’s tomers went. I would bet most car building a new network but adding high-tech research, design My company sells computer net- staff should e-mail it 10 times to dealers would cry foul at such a plan. work systems and services to every congressman, government and engineering jobs to support future technical development And while we’re at it, all those small and medium-size businesses here? After all, we’ve got a few engineers in the job market. employees need food as well. Why so we are unlikely to be seriously See Letters, Page 9 CHRISTOPHER CRAIN: Turn laid-off workers into nurses Sooner or later, we’re all going that would let out-of- troubles are forcing what will soon become the state’s porting more talent from outside to find ourselves or a loved one in state nurses work in companies to cut thou- largest industry — health care. How the state. a local hospital. Perhaps it’s the Michigan without a sands of jobs as they try have we failed to connect the two? Lack of state funds has forced birth of a child or an unfortunate Michigan license. to reduce costs and re- “While the nursing shortage is some nursing programs to come up turn of fate, but we will all come to Perhaps these are nec- store profits. The state real and extremely critical, the good with creative solutions to address depend on and appreciate the pro- essary short-term mea- has lost 20,000 manufac- news is that it’s an easy problem to the shortage. Those have included fessional nurses who provide so sures needed to solve the turing jobs in the past fix,” says Barbara Redman, dean of moving some academic programs much of health care. current problem. How- year, and unemploy- the College of Nursing at Wayne into hospital settings to take advan- But there is a problem: Our hos- ever, the shortage of reg- ment is 6.6 percent State University. “It just takes mon- tage of senior nurses as faculty. pitals don’t have enough of them. istered nurses in Michi- statewide and even ey: money to recruit, retain and ex- Other partnerships have health Detroit area hospitals employ more gan alone is predicted to higher in Detroit. pand the number of faculty, which care systems paying tuition for than 4,000 Canadian nurses who reach 18,000 by 2015. Per- So here’s the discon- in turn increases the number of prospective nurses and forgiving travel each day from Windsor. And haps this is as much an nect: We have an unem- qualified students who can be ac- the student loans for those who we may be importing more talent in opportunity as it is a crisis. ployed but technically skilled work- cepted into nursing programs.” agree to work in that health system. the future. State lawmakers, in The Michigan economy is force available. And we have a Retraining qualified candidates Creative solutions like this are ef- committee, are debating legislation foundering, the auto industry’s number of nursing jobs available in for nursing is far preferable to im- fective, but we need more of them. DETROIT BUSINESS MAIN 05-15-06 A 29 CDB 5/12/2006 6:18 PM Page 1

May 15, 2006 CRAIN’S DETROIT BUSINESS Page 29 Lorro being liquidated Birmingham to look at more liquor licenses

BY ROBERT SHEREFKIN absorbing foam, sold nearly all of BY BRENT SNAVELY said, and may introduce them by commits to a substantial econom- CRAIN NEWS SERVICE its manufacturing assets and a CRAIN’S DETROIT BUSINESS June. The first would allow the ic development initiative. large ownership stake in the com- owner of a liquor license for the A pending request to transfer a The Birmingham City Commission Robert Llorens is liquidating his pany in 1998 to Allen Park-based operation of a restaurant any- resort license into Birmingham voted 5-2 last Monday to direct the automotive supply company, Lorro Meridian Automotive Systems Inc. where in Oakland County to for a Hilton Hotel is one example of Inc., city staff to draft legislation that transfer that license into Birm- a project that would fall under the according to documents filed Meridian in April 2005 sought in U.S. Bankruptcy Court in Detroit. would relax the city’s existing ingham as long as the owner economic development ordi- Chapter 11 creditor protection in A plant guard at the Lorro head- liquor license policy, City Attor- agrees to operate as a bistro. nance, Currier said. Bankruptcy Court in Wilmington, quarters told Automotive News the ney Timothy Currier said. An early version of the propos- A resort license is designed to at- Del. Detroit operations ceased business Proponents argue that changes al defined bistros as restaurants tract and serve tourists and other Meridian CEO Richard Newsted last month. The company was a are necessary because the city is with 65 seats or less that encour- visitors. However, Currier said the did not return calls. minority-owned supplier of ener- losing retailers while full-service age outdoor dining and serve al- economic development ordinance The company estimated its cred- gy-absorbing plastic foam prod- restaurants are eager to enter but cohol at tables, as opposed to could apply to Class C restaurant itors at more than 200, according ucts for automotive bumpers. cannot because there are only 17 bars, but the exact requirements liquor licenses as long as a sub- to court documents. Assets were liquor licenses permitted in the Llorens, who is CEO, and his could change. stantial economic development estimated at between $10 million city and none are for sale. staff did not return numerous The second would allow an op- component is part of the plan. and $50 million, as were debts. The staff now is drafting two erator to transfer a liquor license Brent Snavely: (313) 446-0405, calls, nor did his attorney, Ran- From Automotive News potential ordinances, Currier into the city if the operator also [email protected] dolph Wright, a partner with the Detroit firm Berry Moorman P.C. Lorro filed for Chapter 7 liquidation April 27. Lorro supplied General Motors Corp., Ford Motor Co. and the Chrysler group. Lorro, which billed itself as the world’s largest supplier of energy-

Wayne County opens One-Stop Business Resource Center Wayne County has established a One-Stop Business Resource Center, where county businesses can re- Big business services for ceive assistance with Wayne County programs and services plus help and advice with business development, growth, expansion a small business budget. and attraction issues. The center is in the Metropolitan Center for High Technology Building at 2727 Second Ave., Suite 120, in Business Checking with Cash Management. Detroit, just south of the Masonic Temple. Operated by the Greater Wayne County Economic Development Corp., the center has support from the Michigan Small Business Develop- ment & Technology Center and the Michigan Economic Development Corp. Staff includes Lawrence Jack- son, executive director; Terry Wil- son, intake coordinator; and two Wayne State University finance students. A deputy director is to be hired soon. The office includes worksta- tions, a computer lab and library and will operate between 9 a.m. and 4 p.m. Monday through Fri- • Control payments with wire transfers and ACH day. Special consultations can be made by appointment. The phone number is (866) 56-1- • Earn money on your money with automatic sweep STOP (7687). The Web site is www.waynecounty.com/onestop. — Robert Ankeny • Count on dedicated Business Bankers who come to you

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Page 30 CRAIN’S DETROIT BUSINESS May 15, 2006 Winter Blast: Push is on to make event happen annually ■ From Page 3 festival boundaries,” he said. can’t just do it outside.” will be enough going on to justify the 2005 event was more than event should be resurrected. Witz said he intends to invite Witz said he has had “good con- their support.” 275,000. This year’s event drew “George Jackson has hit the nail Olympia Entertainment and Ford Field versations with some potential Witz said he’ll be approaching more than 1 million. on the head,” she said. “We’ll need officials to plan and schedule sports sponsors.” He wants to garner sup- more members of the corporate Included, he said, will be “a the sponsor- and concert events to take place at port from outside traditional cor- community in the weeks ahead. tremendous amount of free, fami- ships to take it the same time as Winter Blast. porate donors. “It’s a difficult time, but we can ly-oriented activities.” to the right lev- “To make this into a true region- “We want some help from the make a great case that the Winter Witz said that Mayor Kwame el.” al winter carnival” that can ap- DEGC, the Detroit Metro Convention Blast can be really important as an Kilpatrick has given his “100 per- She said the proach the impact it had during & Visitors Bureau and the Michigan ongoing economic impact to down- cent backing and support” for con- event would not the Super Bowl, Witz said, “we Economic Development Corp. There town, and achieve an ongoing posi- tinuing the project. be on quite the tive image, showcasing the contin- “Motown Winter Blast was an same scale as it ued improvements,” he said. overwhelming success during Su- was for Super “It is so impactful to draw a half- per Bowl, and I wholeheartedly Bowl XL. “There million visitors in the middle of embrace the idea of our city once are a lot of peo- winter, showing that Detroit has again hosting the winter celebra- Lang ple who want to year-round potential. It supports a tion,” Kilpatrick said in a state- see this continue; it’s a great time quality of life throughout the en- ment to Crain’s. “I look forward to of year for that kind of event.” tire region; people throughout the meeting with Jonathan and his Reporter Jennette Smith con- tri-county will get benefits.” team to discuss their plan.” tributed to this report. According to the Super Bowl XL Ann Lang, president of the Robert Ankeny: (313) 446-0404, Host Committee, attendance for Downtown Partnership, said the [email protected] Delphi spinout to receive technology award

BY TOM HENDERSON cialist, Alain Tiette, on loan from this year, said Pankin. CRAIN’S DETROIT BUSINESS WSU as part of an $87,000 grant. It Tom Henderson: (313) 446-0337, will begin hiring employees later [email protected] SpaceForm Inc., a Delphi Technolo- gy Inc. spinout that has been at TechTown, the Wayne State Universi- ty-affiliated research and technology park, since September, will be named Wednesday night as win- ner of the Corporate Partnership Award at the Michigan Technolo- gy Leaders 2006 symposium at the EVER STOP TO THINK? Royal Park Hotel in Rochester. “We’re working to free up tech- With all the talent in Detroit, nology and put it in an entrepre- isn’t it time we got it together? neurial environment to create new jobs. And SpaceForm is the poster child,” said Jayson Pankin, the A CreateDetroit Event new-venture creation specialist at for Creative Professionals DTI. ,AW/FlCESOF DTI is a wholly owned sub- Thursday, May 25, 2006 - 6 to 9pm 3TEPHEN-,ANDAU 0# sidiary of Delphi Corp. that helps commercialize its technologies The Hub 3OLUTIONSFOR3ERIOUS,ITIGATION 3- and intellectual property. 1344 Broadway, Downtown Detroit The symposium, which runs Tuesday through Thursday, is Special Guest: sponsored in part by Automation Al- Bill Ludwig, Chief Creative Officer, Campbell-Ewald ley, Wayne State and Walsh College. SpaceForm’s niche is deforma- Tickets are $20 and are available at tion resistance welding, a new CreateDetroit.com or at the door process that joins metals of differ- ent thicknesses and grades and al- Sponsored by: lows metal tubes to be joined to each other or to solids and sheets ,AWSUITHEADEDINTHEWRONGDIRECTION of metal. 7ESPECIALIZEINTURNINGCASESAROUND Traditionally, such welding, de- pending on what needs to be attached to what, is difficult, unreli- able or impossible. 4HERES NOTHING WORSE THAN BEING IN A LAWSUIT AND SpaceForm is funded by DTI, the NOT HAVING CONlDENCE IN YOUR ATTORNEY )F YOU ARE Michigan Technology Tri-Corridor, Au- tomation Alley, Wayne State and INVOLVEDINCIVILLITIGATIONANDFEELYOUHAVETHEWRONG grants by NASA’s Man on the Moon ATTORNEY CONSIDERCHANGINGATTORNEYS and Man to Mars projects. Delphi Corp. has received nearly $2.2 mil- 3TEPHEN - ,ANDAU 0# HAS DECADES OF lion in grants from NASA to devel- EXPERIENCE SUBSTITUTING IN ALLTYPESOFCIVILLITIGATIONIN op the welding process, which it FEDERALANDSTATECOURTS INALLTYPESOFBUSINESSAND shares with SpaceForm. CONTRACTDISPUTESANDINDIVORCEACTIONSINVOLVING NASA hopes that by allowing hollow tubes to be welded, vehicles SIGNIlCANT ASSETS OR CUSTODY ISSUES 7E APPLY TIME for future moon and Mars mis- HONORED TECHNIQUES OF SUPERIOR RESEARCH AND HARD sions can be made much lighter. WORK TO ACHIEVE MAXIMUM CLIENT RECOVERY OR TO Earthbound applications include MINIMIZE CLIENT LOSS 7E CAN APPLY THESE PROCEDURES lighter cars, trucks and wheel- chairs. TOYOURCASETODAY Pankin said SpaceForm hopes to generate revenue through federal

^ÊÓääÈÊ-Ìi« iÊ °Ê>`>Õ]Ê*° ° and state grants, joint ventures &ORACONlDENTIAL with other manufacturers, licens- CONSULTATION CALL 4ELEGRAPH2OAD 3UITE ing its technology and research "INGHAM&ARMS -) projects for manufacturing cus- WWWSLANDAUCOM tomers. SpaceForm has a marketing spe- DETROIT BUSINESS MAIN 05-15-06 A 31 CDB 5/12/2006 7:10 PM Page 1

May 15, 2006 CRAIN’S DETROIT BUSINESS Page 31 Michigan Heritage Bank. Suppliers report 1Q upswing We mean business.

BY LINDSAY CHAPPELL come North America’s largest sup- Average has risen 6.4 percent CRAIN NEWS SERVICE plier this year. since Jan. 1, and the Standard & Construction In an interview last week, Poor’s 500 Index is up 3.7 percent. Take it as a small ray of sunlight Hogan said projections for 16.8 Asked whether the improved on a cloudy Detroit day: Sales and million to 17 million U.S. light-ve- supplier news is a light at the end Spoken profits of North American-based hicle sales in 2006 should hold. of a tunnel, CreditSights Ltd. analyst suppliers improved in the first “Barring unforeseen forces, po- Glenn Reynolds concluded: “We quarter compared with the same litical or economic, I think we’ll be see it as a light. The market has Here quarter last year. OK,” he said, speaking about the calmed down quite a bit.” An Automotive News survey of 16 industry in general. Others remained wary. David suppliers that have reported first- Visteon Corp., now grinding Leiker, an auto analyst with Robert quarter results showed combined through layoffs and plant closings, W. Baird & Co., acknowledged bright net earnings improved 100.9 per- reported a first-quarter net profit spots but advised investors: “Main- cent to $552.3 million. Combined Construction financing is a specialized business. after five years of losses. It posted tain neutral stance on the group, revenue for those companies im- earnings of $3 million for the quar- You want a lender who speaks the language. with cautious outlook.” proved 0.5 percent to $34.36 billion. ter, compared with a loss of $163 Land development, vertical construction, spec financing, Reynolds said the parts segment But the results require a lot of million in the first quarter of 2005. flexible disbursements and quick turnaround on draw now appears to be gaining strength, footnotes. TRW Automotive Holdings Corp. sur- requests are phrases we know all about. although many of the companies’ Only one company operating un- prised analysts with what would der Chapter 11 protection, Federal- have been an increase of more than bonds have junk-status ratings. Construction season is just around the corner. So are we. Mogul Corp., has reported its results. 100 percent in first-quarter earn- Several major North American au- Come talk to us about your project. We’ll understand. Other companies in Chapter 11 pro- ings, if a one-time expense for bond tomotive companies — including American Axle & Manufacturing Hold- Call today to speak to one of our experienced ceedings — Delphi Corp., Collins & redemption were excluded. construction lenders at (248) 538-2525. Aikman Corp., Dana Corp. and Tower Lear Corp., ArvinMeritor Inc. and ings Inc., Visteon, ArvinMeritor, Automotive Inc. — have not yet dis- Gentex Corp. also reported im- Dura Automotive and Lear — now closed first-quarter results. proved quarters. have credit ratings considered be- But for most suppliers not in Supplier stocks have risen this low investment grade. Chapter 11, the first quarter year. Among the 16 suppliers sur- “The main myth that’s been dis- looked better. veyed through May 11, the average pelled is that these companies “The first quarter, by and large, stock price has risen 7.8 percent can’t operate as noninvestment- hasn’t been too bad,” said Mark since the beginning of the year and grade companies,” Reynolds said. www.miheritage.com Hogan, president of Magna Interna- “They can.” 12.2 percent since April 1. By com- Farmington Hills Livonia Novi tional Inc., which is poised to be- parison, the Dow Jones Industrial From Automotive News Mark Julien Rich Klein Craig Rogers 248.538.2552 248.538.2548 248.538.2563 Troy Wixom Mark Boettcher,J.D. Bill Vance 248.689.3151 248.465.9584 Wingate: Producer was ‘go-to guy’ Member FDIC Equal Housing Lender ■ From Page 1 Questions? Comments? Call us, and we’ll respond personally According to Davis, Wingate’s Efforts to reach Wingate’s wife, and country ham for breakfast be- within the same business day. That’s our guarantee. business interests extended into Joanne Jackson, in Las Vegas and fore recording sessions. real estate, hotels and a taxi cab through the funeral home han- “Ed was always a nice guy. He al- company, including Twenty Grand dling Wingate’s services were un- ways treated me right. I always felt Do you have a good relationship with Motel on West Warren near Rosa successful on Friday. Wingate’s fu- that he really loved the music,” Cof- Parks, by the late 1960s and 1970s. neral was to be held at New Bethel fey said. “He was like a hands-on your building services contractor? “I wanted to do a book on Ed and Baptist Church on Saturday. person. He was there all of the I begged him for a couple of years,” In the world of music Wingate time.” Davis said. “About five days before was a formidable competitor for Coffey said Wingate was a large he passed he called me.” Gordy, said session guitarist Dennis man who loved to eat peanuts. His Davis said he wanted to write a Coffey. family of entertainment ventures included Golden World Studios, the book that would illustrate how “Ed Wingate was doing the same Golden World record label and a many black entrepreneurs were kind of thing as Motown but on a record label called Ric Tic. mentored, helped and influenced smaller level,” Coffey said. “He Gordy wanted to purchase Gold- by Wingate. was making some noise and he was en World in order to eliminate the “He was the go-to guy to get any- getting the sound, because he had competition, according to informa- thing done of any magnitude if you some of the Motown guys there.” tion on the SoulfulDetroit.com mu- were black,” Davis said, “the guy Coffey said he remembers going sic forum. who held the community together.” over to Wingate’s home for eggs Wingate sold Golden World to Gordy in 1968. “Ed Wingate is a legendary fig- ure in Detroit music history,” said Mike Novak, a Detroit area enter- Interior tainment attorney. “He made Ed- Exterior win Starr.” Services Services Starr recorded a hit called •Office Retrofits “Agent Double-O Soul,” in the •Pothole Repair •Drain Fixture Repair •Acoustical Ceilings 1960s, and wrote “Oh How Happy” •Concrete •Doors and for The Shades of Blue in 1966. Lat- Replacement Hardware er, after Gordy purchased Golden •Painting •Painting/Wall- World, Starr recorded the power- •Roof Repairs Covering ful anthem “War,” which was re- •Entry Doors •Plumbing leased in 1970. •Dumpster •Electrical Ron Murphy, a sound engineer, Enclosures said Wingate had a recording studio on West Davison Avenue that ran 24 hours a day, in part so that session musicians, including the Funk Brothers, who were also recording during the day for Mo- We are a facilities alteration and maintenance firm that has fine- town, could surreptitiously record We keep tuned our business with skills and equipment so we can do most everybody happy at night at Wingate’s studio. interior/exterior maintenance, alteration or repair. “They got fined if they got Saving you time, money and effort. caught, but Ed Wingate would pay the fines,” Murphy said. “He was Team M.E.M. • 248-299-4647 • Rochester Hills the primary competition. There www.teammem.com was no question about that.” Ask for Mark, Gary or Andrew Brent Snavely: (313) 446-0405;

[email protected] “Service That Works”TM DETROIT BUSINESS MAIN 05-15-06 A 32 CDB 5/12/2006 5:31 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS May 15, 2006 Gateway:Mall planned near fairgrounds ■ From Page 1 least 2000. General Growth Proper- Bieri said General Growth Prop- it sits near affluent Detroit neigh- ties would not comment on its in- erties has “committed wholeheart- borhoods, including Sherwood volvement in the project to edly” to developing the site. Forest, Palmer Woods and Green Crain’s. Schrott and Jim Bieri, re- “What they’ve Acres, and is a short drive from tail consultant and president of De- committed to do suburbs such as Ferndale and Roy- troit-based Bieri Co., said they ex- is spend their al Oak, Jackson said. pect the company will promote the money and use Ideas for a project at Eight Mile Gateway project to prospective their expertise and Woodward have taken several tenants during the International on developing incarnations since 2000, including Council of Shopping Centers spring this,” Bieri said. a proposed auto racetrack, an out- convention May 21-24 in Las Ve- “For a company door amphitheater, a saltwater gas. like this to take aquarium and an outlet mall. Schrott said negotiations with on such a pro- Schrott and Nederlander had re- General Growth Properties took ject is a big deal, Bieri tained JPRA in 2004 to do architec- place for about four months, and and an impor- tural planning for a retail center at the company agreed to work on the tant opportunity for retailers to the site. Ryan said plans for the pro- project about two months ago. reach an untapped market in the ject were submitted to the city, but city.” “They’re going to be the operat- nothing moved forward after that. General Growth Properties ing partner, the managing partner However, Ryan said his compa- and the day-to-day go-to people,” manages a mall in Grand Rapids ny would submit an RFP and said Schrott, who estimates the pro- owned by West Bloomfield Town- would recommit to the project if ject’s cost at about $50 million. “We ship-based Lormax Stern Develop- selected by General Growth. have been reduced to investors.” ment Co. Partner Daniel Stern de- In November, Schrott and Ned- General Growth Properties scribed the company as a erlander attempted to persuade owns or manages more than 200 re- “first-class organization that has the Detroit City Council to urge gional malls nationwide and 12 in tremendous strength in its rela- Michigan, including Lakeside Mall tionship with retailers.” Detroit’s three casinos to move to in Sterling Heights and Southland “They’re very well-managed, ex- the State Fairgrounds. Schrott told Mall in Taylor. Tenants at those tremely organized, and in the Crain’s then that the casinos, malls include anchors such as shopping center industry, they’re along with the inclusion of a new JCPenney, Lord and Taylor, Best Buy very powerful,” Stern said. convention center, would make it and Borders, and such smaller George Jackson Jr., president easier to attract top-flight retailers TESTING ENGINEERS shops as Banana Republic, Ann Taylor and CEO of the Detroit Economic to the proposed shopping mall. Loft and Swedish clothing retailer Growth Corp., did not confirm the To the project’s benefit, the De- & CONSULTANTS, INC. H&M, which is scheduled to open a involvement of the city or General troit City Planning Commission voted store at Lakeside June 2. Growth Properties in the project. to rezone the project area to make Having General Growth Proper- But he said the company has spo- way for a mall in May 2004. The • Building and Infrastructure ties on board means the Detroit re- ken with his staff throughout the General Retirement System of the City • Environmental Services tail center would have access to a past year and as recently as two of Detroit also approved a $10.5 mil- • Geotechnical Services similar lineup of national tenants, weeks ago. lion loan last July to aid the pro- • Indoor Air Quality Schrott said. Jackson said retailers have ject’s development. That loan will • Asbestos/Lead/Mold “There’s not a tenant of signifi- gained interest in Detroit as more be used to build infrastructure, • Construction Materials Testing cance that isn’t in one of their market-rate housing continues to Schrott said. be developed in the city. The Gate- • Safety Training malls,” he said. “They have real es- Sheena Harrison: (313) 446-0325, tate clout.” way area also is attractive because [email protected] 1-800-835-2654 email: [email protected] www.testingengineers.com Offices in: Ann Arbor, Detroit & Troy A Certified WBE/DBB Amber: New projects fuel growth ■ From Page 3 more than 700 units and about 25 cancy rates should stabilize in 2006 president in the brokerage division employees. Revenue has been before “beginning a gradual im- at Farmington Hills-based Friedman steady at about $5 million for the provement trend” in 2007. The aver- Real Estate Group, said he believes Engineering Client Success past several years, Jerry Amber age rent rose to $807 in 2005, up from Amber Properties’ concept will be said. $801 a year earlier, the report said. successful, mostly because it can The townhouse project is the Jack Dent, president of Farming- easily convert to condos, if needed. company’s third new development ton Hills-based “Anybody who is building since 1984; the first two, with a to- Village Green Man- rentals, they’re tal of 15 units, were built in Claw- agement Co., said building with son in 2002 and 2003. But the com- the rental indus- the intent or at pany did make some acquisitions try has improved least the ability INDUSTRIAL STORAGE / along the way. significantly in to be able to con- Jerry and Allen Amber began the past year, al- vert them into WAREHOUSE & DISTRIBUTION running the company in 1989 after lowing most condominiums the elder Ambers retired. Before landlords to tain the future,” Over 500,000 sq.ft. that, they had been acquiring per off incentives Perlman said. Machinery, Dies, Fixtures, Racks, Parts, Etc. properties since the late 1970s and Dent they used last “That’s one of merging them into Amber Proper- spring to attract Perlman the concepts the 10 Truck Docks & On-site Rail Loading ties. The company also does man- tenants. Dent said Village Green has Ambers are utilizing in their cur- agement, maintenance, house- an 8 percent vacancy rate. rent development scheme. Not that keeping, rental sales and showings “Because of the economy, the they intend to convert, but it’s good from its Clawson office. It does not home-buying market dried up,” in terms of market value if it’s read- use property managers. Dent said. “Renters … are not mov- ily convertible.” Amber properties have a vacan- ing out as much to buy a home. Jerry Amber said there are no cy rate of about 2.5 percent. Rent We’re losing less from a turnover plans to shift from rentals. ranges from $548 for a studio to standpoint, and we’re still renting Instead, since the communities $1,495 for a large townhouse. to new people. where the company locates its prop- Hendricks & Partners, a national “It appears people are staying in erties are mostly built-out, Amber apartment sales and research firm apartments because that’s the safe said he expects the same work to with local offices in Birmingham, thing to do,” he said. continue through redevelopment. www.decnow.com estimated metro Detroit’s overall Amber Properties, meanwhile, Amber said he hopes to use his ex- 38 average apartment vacancy rate at is seeking approval for a proposed pertise as a former environmental- Detroit, Michigan / (313) 897-2277 ext. 2 7.5 percent in the last quarter of $3 million redevelopment of the assessment expert — he is a former Email: [email protected] 2005, according to the company’s Clawson Masonic Hall into the three- vice president of Ford Motor Land De- 2005 Apartment Update report on- story, 44-unit Amber Abodements, velopment Corp. — in redeveloping ISO 9002 / QS 9000 line. That was up from 7 percent a which would be similar to the Roy- brownfield sites. REGISTERED year earlier, but Hendricks & Part- al Oak project, Amber said. Anjali Fluker: (313) 446-6796, ners also said in the report that va- Howard Perlman, senior vice [email protected] DETROIT BUSINESS MAIN 05-15-06 A 33 CDB 5/12/2006 5:21 PM Page 1

May 15, 2006 CRAIN’S DETROIT BUSINESS Page 33 Loonie: Rising Canadian dollar boosts hopes www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Last Tuesday, the Canadian dollar’s value “To ship the parts over and pay for packaging ties to quote in Europe because of the euro-dol- ASSOCIATE PUBLISHER Christopher Crain, surpassed 91 cents U.S. It has remained above and bring them back — now that the exchange lar relationship,” said Neil De Koker, president (313) 446-1645 or [email protected] 90 cents since May 2. That was the first time it rate is up, it makes local ma- of the Troy-based Original Equipment Suppliers As- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] had crossed the 90-cent milestone since Febru- chining sources look much sociation. “I suspect the same thing will happen MANAGING EDITOR Jeff Karoub, (313) 446- ary 1978. The value was as low as 65 cents as re- more favorable,” said Moyer. in Canada, though I haven’t heard any specific 0402 or [email protected] ASSISTANT MANAGING EDITOR Michael Lee, cently as March 2003. “Why go through all the logis- examples, yet.” (313) 446-0416 or [email protected] “We used to do an awful lot of shop-and-show tics for 8 or 9 cents on the dol- McCabe said U.S. manufacturers won’t be the SPECIAL SECTIONS EDITOR Shawn Selby, (313) trips where we would combine entertainment lar? You’ll lose that in trans- sole beneficiaries from currency trends. “Mexi- 446-1654 or [email protected] GRAPHICS EDITOR Nancy Clark, (313) 446- and shopping,” said Hundt, managing director portation.” co starts to look like a better alternative, and 1608 or [email protected] and co-owner of Kitchener, Ontario-based Great The other client is a mi- GM has been the most vocal of the auto compa- COPY EDITOR Vic Doucette, (313) 446-0410 Canadian Holidays Inc. “I can see the potential nority supplier Moyer de- nies — but the other have been pushing, too — or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or now being tremendous.” clined to name who is going to get their suppliers to look to the Far East. [email protected] Renee Monforton, director of communica- after new business. This might help.” WEB EDITOR Dan Eizans, (313) 446-0473 or Moyer [email protected] tions for the Detroit Metro Convention & Visitors Chris Johnsen, a partner in The Canadian perspective varies by EDITORIAL SUPPORT Anita Duncan, (313) Bureau, said the bureau will promote the favor- the Toronto office of Deloitte & Touche L.L.P. who province, said Greg Block, a first vice president 446-0329; Joanne Scharich, (313) 446-0419 NEWSROOM (313) 446-0329, FAX (313) 446- able exchange rate to Canadians in television heads up its auto practice, said the mood was in Comerica’s Toronto offices. 1687 TIP LINE (313) 446-6766 commercials that air in parts of Canada within gloomy Wednesday and Thursday at the annual “The biggest winners are the resource-dri- a three- or four-hour drive of Detroit. meeting of the Canadian Automotive Parts Manu- ven exporters in the West, and the biggest REPORTERS Robert Ankeny: Covers the city of Detroit, Wayne “This is really good for us,” she said. Metro facturers Association in Hamilton, Ontario. losers are the Toronto-based manufacturing County government, and law. (313) 446-0404 or Detroit shopping, Detroit Tigers games and at- He said the APMA estimates that “above 87 sector. A lot of companies are restructuring. [email protected]. Sherri Begin: Covers nonprofits and education. tractions are all draws as well, she said. In addi- cents, it becomes very difficult for Canadian Everyone is scrambling to right-size their for- (313) 446-1694 or [email protected] tion, the bureau plans to talk to the Windsor auto suppliers to be competitive in the U.S.” eign exposure,” said Block, who predicted good Andrew Dietderich: Covers innovation and workforce. (313) 446-0315 or convention bureau about resurrecting a two- And projections by the APMA are that the news for American manufacturers. “The flow [email protected]. nation vacation-marketing program that pro- Canadian dollar is expected to rise to the 97- to of manufactured goods from the U.S. to Canada Anjali Fluker: Covers Macomb and Oakland counties, services and environment. (313) 446- moted destinations on both sides of the border. 98-cent range and remain high at least through will begin to increase.” 6796 or [email protected]. Cheaper prices on U.S. goods will “make it 2007. “Alberta is flush with cash. The tar-sand Sheena Harrison: Covers small business, retail and nonautomotive manufacturing. (313) 446- easier to attract Canadians here, and it will dis- Johnsen said one upside for Canadian com- fields were almost mothballed for 20 years,” he 0325 or [email protected]. courage people here from going to Canada. It panies is that they may be able to afford to buy said. “Now, the reserves are flowing, and it Tom Henderson: Covers banking, finance and technology. (313) 446-0337 or has to help tourism. It just has to,” said Dana U.S. technology and equipment from U.S. sup- makes economic sense to begin extracting oil.” [email protected]. Johnson, chief economist at Comerica Bank. pliers that are trying to sell relatively new In general, though, “the word on the street Michelle Martinez: Covers health care, transportation and international business. (313) While the strength of the Canadian economy equipment as they downsize. here is it’s gone too far,” Block said. “When it 446-1622 or [email protected]. is causing the world to sit up and take notice, it Michigan’s manufacturing industry may ben- comes to their vacations, Canadians love it, but Jennette Smith: Covers real estate and hospitality. (313) 446-0414 or poses a big challenge to Canadian exporters to efit from the currency trend, but exchange rates everyone here is feeling the pinch. Ontario has [email protected]. the U.S., said John Bufton, a trade commissioner are only one of many factors companies evaluate been hit disproportionately.” Brent Snavely: Covers auto suppliers, steel and restaurants and entertainment. (313) 446-0405 with the Canadian Consulate General in Detroit. as part of the cost of doing business, said John Melissa Morange, marketing and sponsorship or [email protected]. “Canadians recognize it as a two-way street,” Carroll, senior vice president of business devel- director for Great Lakes Crossing in Auburn Hills, LANSING BUREAU he said. opment at the Detroit Regional Chamber. said the mall has always had Canadian shoppers Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) More tier-one and tier-two auto suppliers Carroll, also executive director of the cham- but has noticed more in recent months as their 371-5355, FAX (517) 371-2492, that have been shipping parts to Canada for ber’s Detroit Regional Economic Partnership, purchasing power has increased. A Windsor TV [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. machining or buying parts from Canadian sup- pointed to health care costs as one example. A station was out recently for a news segment. The pliers are moving that business elsewhere. 2006 analysis of international business costs by mall markets to Canadians ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) Logistics and transportation costs more than KPMG found that Canada retains a cost advan- through radio advertising 446-6032 or [email protected] offset the small difference between the U.S. and tage among G7 countries but that spills over into Windsor SALES INQUIRIES: (313) 446-6052; FAX (313) Canadian currencies, analysts say. Companies the size of the cost advantage and Sarnia and its visitor sav- 393-0997 weighing whether to build an operation in Cana- has been reduced by the ap- ings pass for shoppers that NEW BUSINESS DEVELOPMENT MANAGER da may back off as well. preciation of the Canadian drive more than 50 miles. Cathy Ross, (313) 446-0307, [email protected] ADVERTISING SALES Jeff Anderson, Terri Bob McCabe, managing di- dollar. The study looked at Comerica’s Johnson said Engstrom, Matthew J. Langan, Shawn rector of Southfield-based BBK factors such as labor costs, the rising Canadian dollar is McCracken, Tamara Rokowski, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Ltd., said one of his clients, a utility costs, taxes and trans- an example of the market at Angeles) (323) 370-2477 Windsor-based tier-two auto portation expenses. work, which is what the U.S. CLASSIFIED MANAGER Melissa McKay, (313) 446-1692 supplier, recently studied op- “Anybody thinking about government has been pres- Morang CLASSIFIED ACCOUNT EXECUTIVE Rebekah tions for expanding. Based in relocating a manufacturing suring the Chinese govern- Cook, (313) 446-1655 part on the stronger Canadian plant to Canada is probably ment to do, to allow the yuan to float based on MARKETING DIRECTOR Mary Ann Short Johnson MARKETING ASSISTANT Jennifer Dunn dollar, the company decided rethinking their plans,” said market dictates. MARKETING ARTIST Sylvia Kolaski to buy an existing facility in Comerica’s Johnson. “If they were thinking “It’s in our interest to have an appropriately SALES SUPPORT Ann Perry, Andrea Beckham, Ohio rather than expand in about taking advantage of cheaper Canadian la- priced dollar,” he said. “We face a huge trade YahNica Crawford Canada. bor, they probably aren’t now.” deficit in this country, and we need to see the CIRCULATION Candice Yopp, Manager. McCabe PRODUCTION MANAGER Wendy Kobylarz Clients of Plante & Moran Moyer said that U.S. manufacturers may dollar trading lower relative to other curren- PRODUCTION SUPERVISOR Larry Williams, P.L.L.C. are also affected. Jeff Moyer, vice presi- look to Mexico and China to source smaller cies. As it gets lower, it lowers the imbalance.” (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, dent of global services for Southfield-based parts, but the cost of shipping castings and Jennette Smith: (313) 446-0414, jhsmith@ (888) 909-9111 Plante & Moran, said a tier-one supplier that cur- large components will mean replacing Canadi- crain.com TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information rently ships parts to two Canadian suppliers for an suppliers with U.S. suppliers. Tom Henderson: (313) 446-0337, thenderson@ Center at [email protected]. machining plans to discontinue that practice. “I know our members are getting opportuni- crain.com CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain SECRETARY Merrilee Crain TREASURER Mary Kay Crain MSU: Executive Vice President/Operations Seeks $150M for foreign partnerships William A. Morrow Group Vice President/Technology, ■ Manufacturing, Circulation From Page 3 Robert C. Adams goes to India and China, but we well-aware of the global economy, ternational business links, only 31 ian history, culture and civil engi- Vice President/Production & Manufacturing Dave Kamis think Russia and Eastern Europe they by and large had no idea how percent responded the same way. neering. Corporate Director/Circulation is the next emerging market.” to go about entering it. “The results of our poll prove “Eurasia is an emerging mar- Patrick Sheposh He said tentative plans call for G.D. Crain Jr. Founder (1885-1973) For example, 42 percent of re- that not only does Michigan busi- ket, but it’s very difficult to get Mrs. G.D. Crain Jr. Chairman (1911-1996) spending between $50,000 and spondents believed they could ness have little or no plans for its into,” he said. “We anticipate our EDITORIAL & BUSINESS OFFICES: $60,000 per worker, through a compete internationally and 22 1155 Gratiot Ave., Detroit MI 48207-2732; future development in the global audience is the small business who (313) 446-6000 planned partnership with the percent believed they were ready economy, they haven’t even put a can’t do it by themselves.” Cable address: TWX 248-221-5122 AUTNEW DET state’s junior and community col- to do so, but only 8 percent were Subscriptions $59 one year, $98 two years. Out lot of thought into it,” said EPIC The gateway program will train of state, $79 one year, $138 for two years. leges, to immerse participants in actually involved in cross-border Outside U.S.A., add $48 per year to out-of-state President Ed Sarpolus. “I have to employees for Michigan business- Eastern European languages and transactions. rate for surface mail. say the results of this poll are es, and seek out prospective East- Reprints: For inquiries call the reprints cultures for six months, then to That lack of involvement may department at: (800) 494-9051, Ext. 144 , or at wholly disappointing and point to ern European partners for joint [email protected] train them abroad for a year. have led to survey results that the need for programs like (this).” ventures with American firms. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 A poll commissioned by MSU in showed 76 percent of respondents is published weekly by Crain Communications Inc. Maleck said the gateway pro- For more information on the at 1155 Gratiot Ave., Detroit MI 48207-2732. conjunction with the program’s chose “not really interested at all” Periodicals postage paid at Detroit, MI and launch, is scheduled to be released when asked how interested they gram grew out of a program the en- gateway program, call the MSU De- additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, today. It was conducted by were in establishing links or part- gineering department started in partment of Civil and Environmen- Circulation Department, P.O. Box 07925, Detroit, 1998 with 18 students traveling to MI 48207-9732. GST # 136760444. Printed in EPIC/MRA, which contacted 700 nerships in emerging countries. tal Engineering at (517) 355-5107 or U.S.A. small- and medium-size businesses But when asked if they would be Russia. This week he and 72 stu- e-mail [email protected]. Entire contents copyright 2006 by Crain Communications Inc. All rights reserved. in the state May 1-8. interested in participating in a fed- dents travel to Russia for a seven- Tom Henderson: (313) 446-0337, Reproduction or use of editorial content in any It showed that while they were erally funded program to boost in- week immersion course in Russ- [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 05-15-06 A 34 CDB 5/12/2006 6:35 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS May 15, 2006 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 6-12

Stein, founder of the Heidi’s Federal Energy Regulatory ceeds. The increase ap- Salon chain; James LaHood- Penske new Commission and antitrust proved by the Michigan Pub- Asset Acceptance Sarkis, owner and operator review. ITC expects to close lic Service Commission is 75 of the Barrister House Ban- the acquisition in the sec- percent below the $75 mil- quet Center and Barrister Gar- chair of ond half of this year. lion interim increase that dens Banquet Center in St. Consumers sought. Overall, slip in net income Clair Shores; and the Michi- ON THE MOVE the utility seeks a $132 mil- gan Food and Beverage Asso- downtown lion increase in the rates it ciation and sister organiza- ■ Andrew Camden to the charges customers to dis- tion, the Michigan Business new position of managing tribute natural gas. linked to pay and Professional Association. partnership director and head of Detroit ■ Whisper Wave Technolo- business, JPMorgan Private gies Inc. of Sylvan Lake an- Bank, Grosse Pointe, from nounced that it has won hen Warren-based 50 years on the Edge oger Penske was elect- senior vice president in JP- contracts from the two Asset Acceptance ed chairman of the CALLING ALL BLOGGERS Morgan’s Private Client largest commercial ports in W Corp. (Nasdaq: Pete Ebbing, chairman and R Downtown Detroit Part- Services, Grosse Pointe. the U.S., the Port of Los An- AACC) announced its first- Crain’s Detroit Business is CEO of Detroit-based Detroit nership Monday morning ■ Lorna Utley, president of geles and the Port of Long quarter earnings last week, looking for opinionated Edge Tool Co., is retiring Fri- and announced he will seek businesspeople to write the GM Foundation, left the net income had slipped from day after 50 years with the private-sector funding for a Beach, to install its floating blogs during the Detroit automaker last month, said $15.15 million a year ago to company his grandfather ac- downtown cleanup initia- small-craft-intrusion barri- Regional Chamber’s Hillary Spittle, director of $12.59 million. A big reason: quired in the 1920s. He will tive to be led by him and ers. The agreements total Mackinac Policy Conference communications for corpo- Spending on salaries and continue to serve as a board Mayor Kwame Kilpatrick. $2.9 million and will be the May 31-June 3. rate responsibility and phil- benefits was up by 25 per- member and consultant. Called Next Detroit: Clean largest installations the Leading our team are anthropy. The company cent, or nearly $5 million, to Detroit Edge Tool was Downtown, the campaign company has made. celebrity bloggers Marcie does not plan to replace her; ■ $23.33 million. Brogan, CEO of Brogan & founded in 1885 as a manu- has a budget of $1.2 million The Kresge Foundation the responsibilities have And why would the Partners facturer of knives for the for the rest of this year and has awarded the Wayne State been consolidated under company boost its Convergence lumber and woodworking $1.5 million for next year, University School of Medicine a said Penske, chairman of Rod Gillum, the foundation’s spending on salary and Marketing in industries and expanded $3 million challenge grant Birmingham, the host committee for Su- chairman and GM’s vice for construction of a medical benefits so dramatical- later to serve metalwork- and Craig Ruff, per Bowl XL. He said all of president of corporate re- education building. The ly? Apparently, even in ing. Today the company senior policy makes machine industrial the money will come from sponsibility and diversity. medical school will receive a down economy, it has- fellow of Public knives — some as long as 20 private donations. ■ Former Kelly Services the money if it can raise an n’t been that much fun Sector Kilpatrick said a second Inc. Chairman and CEO Ter- additional $20 million to working at a company Consultants in feet — for cutting metal, plastic, wood, textile, and campaign will be launched ence Adderley has returned fund the Richard J. Mazurek that collects charged-off Lansing — both paper, and employs 68 in soon to clean up city neigh- from an illness to assume M.D. Medical Education consumer debt. known for their Brogan Detroit and Roseville. John borhoods. It is expected the title of nonexecutive Commons by July 1, 2007. The first quarter of witty and insightful Ebbing along with brother that Dave Bing, former De- chairman, the company an- ■ Detroit casinos reported 2005, the company-wide commentary. Ray Ebbing troit Piston and chairman nounced. Verne Istock, who almost $106 million in rev- employee turnover rate and President Qualifications of The Bing Group, will lead was named nonexecutive enue for April, putting them was at an annual rate of and vice president of sales are: that campaign. chairman in late February, at $434 million for the year, 4 61.2 percent, and it was Jerry Madynski now manage ■ Being willing Crain’s reported both becomes lead director. Carl percent ahead of 2005. MGM 84.2 percent among ac- the business. to write entries Penske’s selection and Camden will remain presi- Grand Detroit L.L.C. leads count reps. The spend- at least twice a Bing’s upcoming selection dent and CEO. ing is paying off, the with $162.9 million for the day. You’ll be BITS AND PIECES in the May 8 issue. company said. In the year, after hitting its sec- writing for a ■ Two Wayne State Univer- Penske said the clean- first quarter of 2006, diverse BRIEFLY ond highest take ever at sity Law School graduates downtown project will serve turn-over was down to an Ruff business $41.5 million last month. are squaring off in the Na- as a bridge until the city can ■ Swedish clothing re- annual rate of 45.5 percent, audience, most of whom MotorCity Casino L.L.C. re- tional Basketball Association create a Business Improve- tailer H&M opened its first and among account reps it will not be at the ported $36.8 million for playoffs this year, not on ment District. BIDs use Michigan store Friday, an was down to 61.5 percent. conference. April 2006, down 4 percent ■ Being irreverent or funny the court but in the owners’ money that property owners 11,000-square-foot location from April 2005 and at just helps, but it’s most lounges. Bill Davidson, class assess themselves for land- at Briarwood Mall in Ann under $153.5 million year- Lebanese American important to be observant. of ’49, has been majority scape maintenance, light- Arbor. It plans to open a to-date; while Greektown chamber makes honors Did you hear a good idea? owner of the Detroit Pistons ing, security patrols and lit- 17,000-square-foot location Casino L.L.C., with $27.6 mil- Meet an interesting person? since 1974, and Dan Gilbert, ter and graffiti removal. at Lakeside Mall in Sterling lion in revenue last month, Learn something you didn’t The newly established class of ’87, bought majority Heights on June 2. was up 0.2 percent over know? If so, those could be Lebanese American Chamber of control of the Cleveland Cav- ■ CMS Energy Corp. is sell- good blog topics. ITC Holdings to pay $866M April 2005, reporting a total Commerce on Friday plans to aliers in 2005. ing its EnerBank USA sub- of $117.6 million so far this ■ No blogging for political launch its first membership ■ Women in Communica- sidiary, a 37-employee oper- purposes, please. for transmission firm year. drive at a sold-out debut tions of Detroit has honored ation in Salt Lake City that Crain’s will choose a cross- Novi-based ITC Holdings event honoring Lebanese the following women for provides home-improve- section of bloggers from Corp. is acquiring Michi- BITUARIES Americans in the U.S. their achievements in the ment loans that remodeling O those who volunteer. If gan’s other major electrici- The chamber, founded communications field: Kim and trade contractors can ■ Frank Boos III, owner of you’re interested, send an e- ty-transmission company, last fall in Farmington mail to Executive Editor Walsh, director of Detroit Ra- offer to their customers, to the Frank H. Boos Gallery in Michigan Electric Transmis- Hills, expects up to 300 for Cindy Goodaker, dio Information Services; Cyn- Home Depot, subject to reg- Troy, died of complications sion Co. L.L.C., in an $866 its Golden Cedar Awards, [email protected]. thia Price, women diversity ulatory approvals in Utah from vascular disease May million deal. said John Akouri, chamber Include your contact sales and marketing man- and with the Federal Deposit 9. He was 70. chairman and CEO. information and a sentence ager for General Motors The acquisition will give Insurance Corp. ■ John Burrows, former or two about why you’d like Local award winners Corp.; and Fara Warner, au- ITC, whose 150-employee ■ TechTeam Global Inc. on chair of the oncology de- to be a blogger. were Hayat “Heidi” Ghafari- thor and freelance writer. subsidiary ITCTransmission Monday said it has agreed partment at St. John Hospital operates Southeast Michi- to reimburse Brookline, in Detroit and ex-president gan’s system, ownership of Mass.-based hedge fund of the Michigan Society of METC’s electricity-trans- Costa Brava Partnership III Hematology and Oncology, mission system in the west- L.P. up to $700,000 for docu- died of complications from ern Lower Peninsula. Ann mented expenses related to non-Hodgkin’s lymphoma Find funds, inspiration Arbor-based METC em- a Costa Brava lawsuit in a April 28. He was 73. ploys more than 90 people. Delaware court and the ■ Andrew Perdue You’ve got the next big thing. It’s out them free. , an attor- METC’s selling share- hedge fund’s attempt at ney who ran a private prac- of your head, on paper and ready to VC in the blogosphere is also readily holders, Trans-Elect Inc., af- nominating a new slate of tice in Detroit, died of con- be pitched. (And you’ve read the available. Ventureblog.com offers filiates of Evercore Capital stories about venture capital and directors for TechTeam. gestive heart failure May 5. daily insight on the state of venture Partners, Macquarie Essential ■ other investing in the special section capital and startups and can be Former Detroit District He was 85. Assets Partnership and other ■ starting on Page 11.) What next? sorted by industry and interest. Court Chief Judge Adam Dave Shafer, longtime private investors, will re- Shakoor will mediate a dis- Detroit radio personality Surf, surf and surf some more. Tired of reading? IPod-savvy self- ceive $486 million in cash pute over the estate of civil- and broadcast manager, Whether you’re looking for venture starters can download weekly and about $70 million in Rosa Parks capital, an angel investor or you podcasts from venturevoice.com, rights leader , the died of complications from shares of ITC common just want to know what kinds of which focuses weekly on individual Detroit Free Press reported. surgery May 7. He was 73. ■ ■ projects said funding is going to, venture capitalists, with 33 shows stock. ITC Holdings will State regulators ap- Sarkes Sam Tootalian, vfinance.com has your answer. The WEB WORLD in all so far. They’re great listens also assume or refinance proved an immediate $18.4 former managing partner site provides custom search areas Daniel Eizans and may just have enough of the about $311 million in METC million natural-gas rate in- of Bloomfield Hills account- to find capital by state, type of right advice to launch that idea into debt. crease for Consumers Energy ing firm Purdy, Donovan & investment needed and also offers a booming business. Go forth and ask for The transaction requires Co., an interim adjustment Beal, died of multiple numerous detailed reports — some of cash! approvals that include the while a full rate case pro- myeloma May 7. He was 77. DBpageAD.qxd 4/28/2006 10:42 AM Page 1

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