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DETROIT BUSINESS MAIN 01-07-08 A 1 CDB 1/4/2008 6:26 PM Page 1

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http://www.crainsdetroit.com Vol. 24, No. 1 JANUARY 1 – 7, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Downtown plans Buildings sold for $63M A 25-building portfolio of office and industrial buildings in Southeast $150M project is on Campus Martius totaling 952,000 BY DANIEL DUGGAN Studio, is the designer. square feet has been sold CRAIN’S BUSINESS The ambitious project is slated to include 84 to a group of investors for apartments, a cinema, health club, 22,000 square $63 million. Developers and city officials plan to an- feet of space for smaller boutique retail and a y The buildings were nounce Wednesday a $150 million entertain- 100,000-square-foot space for a larger retailer. ment, retail and apartment development in owned by Malvern, Plans also call for a 40,000-square-foot public park. . Cadillac Centre Penn.-based real estate In a prepared statement, the Northern Group Cadillac Centre will be built investment trust Liberty INSIDE said financing is in place, but did not disclose the Compuware Farmer near Monroe Street and Wood- source. In addition to the First National and Property Trust (NYSE: Rentals fare ward Avenue, filing the last va- Corp. buildings, the Northern Group LRY). A group of individ- better cant parcel on Campus Martius. CadillacRandolph also owns the in Detroit and Monroe ual investors from New downtown. The project will be an invest- Tower Page 21. is refurbishing the 400-unit Alden Park Towers Campus Jersey and Montreal pur- ment by New York-based Northern on Detroit’s riverfront. Martius chased the properties un- Group Inc., which owns the Cadil- Northern Group officials were not available for First Nat’l der the name Craven Walk lac Tower and , both Building comment, but released a prepared statement as Woodward L.L.C. near the proposed development. Cadillac Tower part of a media roll-out. Company officials will at- A six-building office will be connected to the development, with the Griswold two filling the two-acre site bound by Monroe, tend a press conference planned for Wednesday Fort complex in Troy called Farmer, Bates and Cadillac Square. in Mayor Kwame Kilpatrick’s conference room. Maple Research Park 375 New York-based architect Anthony Caradon- Daniel Duggan: (313) 446-0414; makes up 280,000 square na, with the firm Opus Architecture and Design [email protected] Congress feet of the portfolio, along d with five industrial build- ings in the Automation Alley Tech Park in Troy making up 140,000 square feet. The remaining buildings are smaller in- SEEing an dustrial buildings around 2007 the area. Liberty was represent- ed by the Southfield office of CB Richard Ellis. opportunity The sale represents the last large chunk of Liber- Newsmakers ty’s Detroit area portfo- Golden’s eyewear chain has a national vision lio, which once reached 4 million square feet, said BY SHEENA HARRISON Jeanne Leonard, vice presi- CRAIN’S DETROIT BUSINESS dent for investor rela- of the Year tions. Leonard confirmed Richard Golden, who sold D.O.C Op- the sale. She said the tics Corp. for $120 million last year, is company still owns sever- Here’s what they did: giving another go at building a nation- al eyewear chain. al small buildings in the SEE Inc. plans to area, but nothing signifi- New malls. New . open more than 80 cant in size. New DIA. A historic stores across the In December, Liberty country by 2013. sold the First Center port- agreement. And one left town. Golden is founder folio of six office build- and CEO of SEE, ings in Southfield for $66 The list of 10 is on Pages 6-7. which now has 20 ABOUT SEE stores in Birming- million. What is it: SEE, Selective Eyewear Other portions of the ham, , Elements. San Francisco, Mia- portfolio were sold in Golden Number of stores: 20 currently with 2006, including a five- mi, Los Angeles, plans to add more than 80. Washington and . building, 1.4 million- What they sell: Designer styles at The company plans to open a store in square-foot portfolio to discounted prices. Glasses that may Cambridge, Mass., this week and has Minneapolis-based Welsh- sell for $450 to $700 a pair, SEE More on the good and the bad signed leases for at least two additional features similar styles that range from Co L.L.C. stores in the West and Midwest, Golden $200 to $300 including lenses. — Daniel Duggan said. Sales: Between $800 and $1,000 a of 2007, Page 18. Golden said SEE will aim to open square foot a year, with the average See This Just In, Page 2 store being about 1,000 square feet. See SEE, Page 21

40-somethings find challenge in State detours marketing snowboarding, Page 11 NEWSPAPER to out-of-state tourists, Page 3 DETROIT BUSINESS MAIN 01-07-08 A 2 CDB 1/4/2008 6:25 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 7, 2008

Crestmark Bank buys company first phase, 850 units, scheduled Molina Healthcare of Michigan Carl Icahn as the company’s THIS JUST IN to open in fall 2010. largest investor. Troy-based Crestmark Bank will Chicago-based U.S. Equities will gets new president Federal-Mogul emerged from ■ announce today that it has ac- From Page 1 market, lease, and manage the Molina Healthcare Inc. (NYSE: Chapter 11 bankruptcy on Dec. quired Commercial Capital Lending development. 27. Alapont spoke about the com- L.L.C. of Baton Rouge, La. MOH) has named Jesse Thomas 2 Delphi execs to get $13.6M — Daniel Duggan president of Troy-based Molina pany’s recent restructuring ef- Crestmark is an asset-based forts and what he says is Federal- lender to small and midsized Healthcare of Michigan. in combined cash bonuses He replaces Roman Kulich who Mogul’s bright outlook. businesses. Commercial Capital WDIV exec leaving Jan. 18 “Definitely, we are back to a Troy-based Delphi Corp.’s two does discount factoring, funding left his six-year tenure as presi- top executives, Steve Miller and Steve Wasserman, vice president dent and CEO of Molina’s Michi- normal life,” Alapont said. “We companies based on their ac- and general manager of Detroit are a company back into the mar- Rodney O’Neal, stand to earn $13.6 counts receivable. gan subsidiary last fall to take a million in combined cash bonus- NBC affiliate WDIV-Channel 4, will position with Coventry Healthcare ket as a fully restructured corpo- W. David Tull, Crestmark’s leave the station Jan. 18. ration with a financial perfor- es as part of the supplier’s im- chairman and CEO, said the pur- of Missouri. pending emergence from Chapter A news release issued by the Thomas, 56, had served as mance that is among the best chase was for more than $16 mil- station Friday didn’t indicate performance in the industry.” 11 protection. lion. He declined to disclose Com- president of Molina Healthcare Miller, 68, a longtime turn- why Wasserman is leaving. He of Ohio since 2006. Icahn, through an affiliate mercial Capital’s revenue. He couldn’t be reached for comment. called Thornwood Associates Limit- around expert who is executive said the company will retain its — Sherri Begin Alan Frank, president and CEO ed Partnership, has 60 days to de- chairman, gets $8.3 million, ac- 20 employees and operate as of WDIV’s parent company, Post- cide whether to exercise two sig- cording to a filing in U.S. Bank- Crestmark Commercial Capital Lend- Newsweek Stations Inc., will act as Alapont: Federal-Mogul has nificant stock options. If he uses ruptcy Court. ing L.L.C. general manager until a replace- the options, Icahn could control He is expected to leave Delphi — Tom Henderson bright financial future once the supplier exits Chapter ment is found. as much as 76 percent of Federal- Freed finally after six years of 11. That may be as early as this — Bill Shea Mogul stock and eight of its nine Chapter 11 bankruptcy expenses, quarter. Student housing development board positions. Alapont said he Federal-Mogul Corp. President and CEO O’Neal is in line to re- has a close relationship with Ic- Marathon awards refinery CEO Jose Maria Alapont said Fri- ceive a $5.3 million bonus. set for UM Ann Arbor campus ahn and plans to remain at Fed- day he is looking forward to eral-Mogul.“I’m at Federal-Mogul He is staying to run Delphi un- A mixed-use development with construction contract steering a financially sound Fed- for the long run,” he said. a 1,700-unit student housing de- der the incoming new owners, Marathon Oil Corp. awarded a eral-Mogul into the future with — Brent Snavely, Phil Nussel led by private-equity investor Ap- velopment and ground-floor re- $1.6 billion contract to Irving, paloosa Management L.P. tail is planned on the University of Texas-based Fluor Corp. for the en- The compensation committee Michigan’s campus in Ann Arbor gineering and construction of its CORRECTIONS of Delphi’s board based its rec- at the corner of South University projected $1.9 billion expansion Ⅲ Identity Marketing & Public Relations L.L.C. principal Thomas Nixon’s ommendations on industry and South Forest. and upgrade project for its De- first name was incorrect in a Page 3 story in the Dec. 24 edition. benchmarking and the two men’s To be called University Vil- troit refinery. Ⅲ A story on Page 10 of the Dec. 24 issue incorrectly implied that atten- performance. lage, the project will be devel- The project, expected to be dance at Greenfield Village was 35,000 in 2007. In fact, attendance was The board said the two waived oped by Bingham Farms-based completed in late 2010, will in- about 530,000 visitors, up 35,000 from the year before. Similarly, 23,000 a total of $7.3 million in com- Hughes Properties and Ann Arbor- crease the refinery’s oil process- was the number of increased visitors to Museum in 2007, bined compensation. based Omena Real Estate Invest- ing capacity. not the total number, which was 475,000. Miller accepted only $1 for his ments. Construction is expected to be- The article also should have stated that earned revenue, such as ticket work in 2006 and 2007. The development will consist gin in the next few months. and food sales, accounts for about 65 percent of the museum’s operat- — Crain News Service of two midrise buildings with the — Leah Boyd ing revenue of $56 million, rather than its total revenue. NEED WANT Most of our clients don’t need life insurance to ensure their heirs maintain a comfortable lifestyle. And many are liquid enough to pay estate taxes. Yet they continue to invest in unique life insurance-based strategies designed by our firm.

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January 7, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S State detours tourism funds INDEX ly doesn’t do a lot for the state of Michigan,” said Bright future: Aastrom More cash goes to lure out-of-state visitors Mike O’Callaghan, executive vice president and Biosciences finds COO of the Detroit Metro Convention & Visitors Bu- investor confidence, but reau. “We really should spend dollars outside of not quarterly profits. BY AMY LANE from 80 percent to 90 percent of total tourism the state to draw visitors. That’s bringing new Page 4. CAPITOL CORRESPONDENT spending, while in-state spending will drop from 20 percent to 10 percent. money into the state.” LANSING — Michigan is shaving in-state George Zimmermann, vice He and others said Michigan’s economic struggles have tight- tourism promotion and putting more of its money president of Travel Michigan, toward attracting out-of-state visitors, in the wake ened residents’ pocketbooks and said there was a variety of con- of a 24 percent reduction this year in state tourism discretionary spending. The re- siderations that went into the funding. allocation of promotional funds, shift. Among them: The signifi- State officials say they needed to re-evaluate in light of Michigan’s economy, priorities for limited marketing dollars after law- cant effort that Michigan’s is “a tough, difficult decision makers in October approved a budget that gave tourism industry puts into in- that we applaud,” said Steve Yen- the Michigan Economic Development Corp. $11.4 mil- state promotion, weakened cich, president and CEO of the spending by Michigan resi- Another round: lion out of the state’s general fund to spend on Yencich Michigan Hotel, Motel & Resort As- Restaurant veteran tourism and business marketing. Zimmermann dents, and the need for Travel sociation. returns to downtown Of that, the MEDC has designated $10 million Michigan to lead in cultivating new markets to “The Michigan base is simply not there in to- Detroit with a wine bar. Page 13. for tourism marketing and promotion, compared bring in visitors. day’s climate,” he said. “We believe it’s impera- with the $13.2 million that Travel Michigan, the Tourism industry officials say the out-of-state tive to reach out and into states that have stronger Givers & Shakers: The promotional focus makes sense. DADA’s Auto Show state’s tourism-marketing agency, had in 2007. Charity Preview adds star Out-of-state tourism advertising will increase “I think that spending our money in-state real- See Tourism, Page 20 power. Page 14.

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

Aastrom Biosciences Inc...... 4 Advo Inc...... 18 All American Football League . . . . . 18 Ann Arbor Spark...... 6 Anderson Economic Group L.L.C.. . . . 3 Andrew W. Mellon Foundation. . . . . 17 Report: Tech wages Asian Village ...... 13 Growth Automotive Components Holdings. . 20 Barbara Ann Karmanos Cancer Institute...... 18 Baseball Heroes of Oakland County .18 Cameron Mitchell Restaurants . . . . 13 Cerberus Capital Management . . . . 18 Chrysler L.L.C...... 18 Comerica Inc...... 6 ahead Compuware Corp...... 18 up, workforce down Delia’s Inc...... 21 Detroit Auto Dealers Association. . . 14 Detroit Entertainment L.L.C...... 7 Detroit Medical Center ...... 18 REPORT HIGHLIGHTS Meridian bounces back from Detroit Metro Convention Auto layoffs & Visitors Bureau ...... 3 Highlights from Automation Alley’s annual technology Detroit Institute of Arts ...... 6 Energy Conversion Devices Inc. . . . . 18 industry report, which covers high-tech jobs in Macomb, bankruptcy, eyes expansion Enoteca Campo Marzio...... 13 account for Oakland, Wayne, Washtenaw, Livingston, St. Clair, Monroe Great Lakes Economic Initiative . . . 18 and Genesee counties. What constitutes a high-tech job is Honigman Miller...... 18 Knox Lawrence International L.L.C. . 17 based on Standard Industrial Classification codes in BY BRENT SNAVELY Lear Corp...... 7 half the loss advanced automotive, advanced manufacturing, chemical CRAIN’S DETROIT BUSINESS Local Initiatives Support Corp...... 5 and material professions, information technology, life Luxottica Group S.p.A...... 21 McKinley Inc...... 14 sciences and an “other” category that includes architects Richard Newsted, CEO of Meridian Automotive Sys- tems Inc., says he’s proud of his company’s ability to Meridian Automotive Systems Inc. . . 3 BY TOM HENDERSON and engineers. MGM Grand Detroit Casino...... 18 stabilize itself after emerging from Chapter 11 bank- Michigan Economic CRAIN’S DETROIT BUSINESS ruptcy a year ago, despite a Development Corp...... 3, 20 MotorCity Casino ...... 18 Local high-tech employment EMPLOYMENT challenging industry environ- Northern Group Inc...... 1 was down in five of six technology ment. Northwest Airlines Corp...... 18 2004 332,531 sectors from 2004-2005, but that bad Newsted said the Allen Park- Penske Corp...... 7 2005 312,412 Pfizer Inc...... 18 news was offset in part by wage in- based Meridian, a supplier of Plante & Moran P.L.L.C...... 20 creases across the board, accord- automotive bumper systems, is QuatRx Pharmaceuticals Co...... 18 ing to Automation Alley’s annual even poised to expand. ...... 6 AVERAGE WAGE RockBridge Equity Partners ...... 6 technology industry report being Since emerging from bank- Ron and Roman Designer Architect . 13 released today. 2004 $65,701 ruptcy, the company has Rusty Bucket Corner Tavern ...... 13 Automotive layoffs accounted 2005 $69,068 Newsted jumped into the plastic chrome- SEE Inc...... 1 Serra Automotive ...... 14 for about half of the loss of 20,119 plating business, announced its Skillman Foundation ...... 5 local high-tech jobs. MORE ON intent to buy an Ohio plant Sphinx Organization ...... 17 In 2004, there were 332,531 high- OTHER KEY from Automotive Components Synergy Plus Solutions Inc...... 17 THE WEB Holdings L.L.C. and is planning to Taubman Centers Inc...... 7 tech jobs in the eight counties cov- FINDINGS Team Michigan...... 18 ered by Automa- To hear Richard open two plants in Mexico. The Henry Ford ...... 14 tion Alley, a Automotive accounted for slightly more than half of the Newsted talk about “I can sit here … with great TriMas Corp...... 7 United Auto Workers ...... 6 technology- job loss, but still accounted for more than 38 percent of Meridian’s pride from the fact that I think Valassis Communications Inc...... 18 based, nonprofit area tech jobs. accomplishments, … we restored credibility on all Valenti Capital L.L.C...... 7 economic-devel- the outlook for the fronts,” Newsted said. Volkswagen of America Inc...... 18 From 2000-2005, area companies received $150.7 automotive industry, WLP Software Services ...... 17 opment organi- Newsted said Meridian was million in U.S. Small Business Administration Small Business oil prices and his zation with 850 profitable and protected its liq- Innovation Research grants, with the 2005 total of $38.7 company’s plans for members in Ma- uidity in 2007, even though million setting a local record. 2008, go to comb, Oakland, crainsdetroit.com/ sales declined by $100 million. Wayne, Washte- Universities in the region spent $1.05 billion on research multimedia. Meridian is expecting to end BANKRUPTCIES ...... 4 naw, Liv- in 2005, the third year in a row above $1 billion. In 1998, 2007 with sales of about $700 Anderson BRIEFLY ...... 17 ingston, St. the figure was $646 million. million, down from $800 million last year. BUSINESS DIARY ...... 15 Clair, Monroe and Genesee coun- Jobs in information technology dropped 9.5 percent in “We’re down year-over-year, but its kind of what we CALENDAR ...... 17 expected,” Newsted said. ties. It is headquartered in Troy. 2005, followed by advanced automotive, which was down CLASSIFIED ADS...... 16 Meridian’s annual sales were hurt by a decision to That fell to 312,412 jobs in 2005, a by 8.2 percent; life sciences by 7.1 percent; and advanced KEITH CRAIN ...... 8 decline of 6.1 percent. shed an unprofitable $90 million interiors division that manufacturing by 5 percent. Employment was flat in LETTERS ...... 8 Patrick Anderson, CEO of East made products for General Motors Corp., as well as a chemical and material professions and other technologies. MARY KRAMER...... 9 Lansing-based Anderson Economic steep, industrywide decline of commercial truck sales. The report is available for download at OPINION ...... 8 Group L.L.C., which did the report Heavy truck sales represent about 15 percent of for the third straight year, said the www.automationalley.com. To get a hard copy, call the Meridian’s annual sales, Newsted said. Industry sales PEOPLE ...... 15 reason for the lag time — the 2007 Automation Alley Resource Center at (800) 427-5100 or were down because emissions regulations that went RUMBLINGS...... 22 e-mail [email protected]. WEEK IN REVIEW ...... 22 See Tech, Page 20 See Meridian, Page 20 DETROIT BUSINESS MAIN 01-07-08 A 4 CDB 1/4/2008 6:12 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 7, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Aastrom sees a bright future, but hasn’t seen quarterly profits

BY TOM HENDERSON build and sell machines to medical CRAIN’S DETROIT BUSINESS WHAT ANALYSTS ARE SAYING institutions to help them grow stem cells. It later decided to keep Rodman & Renshaw L.L.C. rated Ann Arbor-based Aastrom Bio- its machines and sell the stem-cell sciences Inc. is finding investor Aastrom a market outperform on Oct. 22 and set a 12-month target products it made instead. and analyst confidence and is mov- price of $2 and refers to Aastrom Since going public in 1996, it has ing its research closer to commer- as “one of the few leaders in the yet to produce a quarterly profit. cialization. stem-cell space already making For the quarter ended Sept. 30, it However, that hasn’t paid off in advances in the clinic.” reported a net loss of $5.1 million, its stock price, and so the company Dawson James Securities Inc. up from $4.1 million a year ago. was told Dec. 20 it faces delisting rated the stock a buy on Sept. 20, “One might argue the company from the Nasdaq stock exchange if with a target price of $3.75. “We went public too early,” said Dun- believe that Aastrom represents bar, who was CEO of California- it can’t achieve a closing price of at the best long-term value play ... least $1 a share for 10 straight days based on their clinical progress.” based Quantum Dot Corp., before joining Aastrom in July 2006. by June 17. The stock last closed at Merriman Curhan Ford & Co. that level on Nov. 6 and has been reiterated a buy rating on Sept. 11, “Aastrom was doing good, solid trading in the 50 cent-to-60 cent describing fiscal 2007, which work, but it had lost its way. ... range. It closed Friday at 60 cents. ended June 30, “as a There was no path to and through breakthrough year for Aastrom, Failure to meet the standard the FDA to commercialization.” and ’08 portends to be an even According to Dawson James Secu- would push the company (ASTM) more pivotal year for the company. rities Inc., Aastrom has no direct to the Over The Counter Bulletin … We continue to believe that competitors. Other U.S. stem-cell Board, which regulates trading but shares are worth $2-$3.” companies use fetal or embryonic doesn’t have listing requirements. stem cells, human neural cells, Aastrom President and CEO trials in the U.S. for a variety of umbilical cord blood or fat-tissue George Dunbar said he’s less con- hard-to-heal conditions. In May, the company got approval to begin stem cells. Most use donors. Only cerned about where the stock Aastrom uses a patient’s own stem trades than about the progress the a Phase III FDA study of 120 pa- tients with a debilitating hip con- cells harvested from marrow. company is making with clinical Pending regulatory approval by trials in the U.S. and Europe on its dition that often leads to complete hip replacement in young adults. the FDA, the various tissue-repair The Capitol Hill Summit tissue-repair products — for bone lines could start hitting the mar- On Oct. 18, Aastrom presented The Capitol Hill Summit will bring together environmental and waste growth, nerve regeneration, carti- ket in 2011. results of a study of patients with executives from corporations both large and small, as well as companies lage repair and vascular repair — In the meantime, the company severe non-union fractures to the that provide environmental services to corporate America. This conference that are grown from stem cells tak- has grown. In October, it an- annual meeting of the Orthopaedic will address all waste streams – solid waste, hazardous waste, wastewater en from patients’ bone marrow. nounced it had raised $13.5 million Trauma Association. “Non-union” and air pollution. Focus issues will range from regulatory concerns about “The company made more clini- in a private placement with its in- greenhouse gas to emerging developments affecting recycling and reuse of cal progress last year than it’s refers to breaks that had resisted stitutional investors, which gives waste and industry by-products. made in some time,” Dunbar said. fusing for at least six months. it enough money for operations The Capitol Hill Summit will bring the latest information about environmental “We hit all the clinical milestones Twelve months after treatment through June 2009. regulation and legislation to stakeholders nationwide. Drawing on the we set out at the beginning of the with repair cells at five hospitals, It added 5,000 square feet to its experience of industry experts, the conference will provide opportunities to year.” including William Beaumont Hospi- Domino Farms headquarters in be a part of interactive sessions with local, state and federal government and Those include: tal in Royal Oak and the University May for a total of 30,000 square feet regulatory leaders. Featured speakers will discuss not only what's happening Studies that have been of Michigan Hospitals in Ann Arbor, and added 16 employees last year. in Congress and at the Environmental Protection Agency, but how it will promising in Europe and Phase I 30 of 33 patients had healed. Tom Henderson: (313) 446-0337, affect public and private sector day-to-day operations. and II Food and Drug Administration Aastrom was founded in 1989 to [email protected] Who Should Attend • Environmental Executives • Executives at Waste Management at Fortune 500 Companies and Recycling Companies STREET TALK • Compliance Officers • Attorneys • Federal and State • Consultants BANKRUPTCIES THIS WEEK’S STOCK TOTALS: 9 GAINERS, 61 LOSERS, 4 UNCHANGED Legislators/Regulators • Association Leaders The following businesses filed 01/04 12/27 PERCENT CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE • Municipal Leaders for Chapter 7 or 11 protection in North Pointe Holdings Corp. $15.44 $10.94 41.12 Corporate Sponsorships Available U.S. Bankruptcy Court in Detroit Dec. 1. 22-Jan. 3. Under Chapter 11, a com- 2. Saga Communications Inc. 6.48 5.87 10.39 Contact Ted Mathews at (330) 865-6175 or [email protected]. pany files for reorganization. 3. Rockwell Medical Technologies Inc. 7.17 7.12 0.81 For inquiries about speakers or the program, contact Tracy Treon at Waste Chapter 7 involves total liquida- 4. Detrex Corp. 8.40 8.40 0.00 News’ partner for the event, the law firm Porter Wright Morris & Arthur LLP, at tion. 5. Oxford Bank Corp./MI 25.90 26.00 -0.39 (614) 227-1930 or [email protected]. To learn more about Porter 12 Mile Deli L.L.C., 20900 12 Mile 6. Veri-Tek International Corp. 5.99 6.05 -0.99 Wright Morris & Arthur LLP, visit www.porterwright.com Road, St. Clair Shores, voluntary 7. TechTeam Global Inc. 11.57 11.71 -1.20 Register Online Today: www.capitolhillsummit.com Chapter 7. Assets: $56,440; liabili- 8. Caraco Pharmaceutical Labs Ltd. 16.25 16.47 -1.34 ties: $44,025. 9. Federal Screw Works 10.30 10.50 -1.91 ©Crain Communications, Inc. 2007 94/Belleville Restaurant Inc., 10. Perceptron Inc. 10.56 10.77 -1.95 11511 Belleville Road, Belleville, 01/04 12/27 PERCENT voluntary Chapter 11. Assets and CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE liabilities not available. 1. Amerigon Inc. $16.38 $19.68 -16.77 E. L. Commercial Interiors Inc., 7517 Credit Acceptance Corp. 17.29 20.65 -16.27 Baron Drive, Canton Township, 2. Valassis Communications Inc. 9.95 11.85 -16.03 voluntary Chapter 7. Assets: $ 3. 242,399; liabilities: $ 1,343,614. 4. Borders Group Inc. 9.29 11.02 -15.70 Ground Transportation Specialist 5. Flagstar Bancorp Inc. 6.01 7.11 -15.47 Inc., 24301 Merriman Road, New 6. Universal Truckload Services Inc. 16.92 19.99 -15.36 Boston, voluntary Chapter 7. As- 7. Domino’s Pizza Inc. 11.72 13.77 -14.89 sets: $0; liabilities: $ 1,775,864. 8. Pulte Homes Inc. 9.14 10.70 -14.58 Urszula A. Studzinski, M.D. P.C., 9. Champion Enterprises Inc. 8.01 9.32 -14.06 19855 W. Outer Drive, Dearborn, 10. American Axle & Manufacturing 16.28 18.82 -13.50 voluntary Chapter 11. Assets and Source: Bloomberg News. From a list of publicly owned companies with headquarters liabilities not available. in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading at less than $5 are not included. — Compiled By Jonathan Eppley DETROIT BUSINESS MAIN 01-07-08 A 5 CDB 1/4/2008 3:32 PM Page 1

January 7, 2008 CRAIN’S DETROIT BUSINESS Page 5

Neighborhoods project spurs You get more than just theories and equations at Lawrence Tech. The University’s MBA and other business millions in additional grants and management programs expose you to the tools and practical experience BY SHERRI BEGIN ment in five of the six neighbor- you’ll need to realize your dreams. CRAIN’S DETROIT BUSINESS hoods. Those five neighborhoods are: The goal is simple: To prepare you The Skillman Foundation’s $100 Chadsey/Condon and Vernor in to not only compete within an industry, million investment in six Detroit southwest Detroit, Brightmoor on neighborhoods over 10 years could the west side, Central in the mid- but to lead it. leverage an additional $400 million dle of the city, and Osborn in if the pace of supplemental grants northeast Detroit. continues. The sixth neighborhood, Register now for January classes. Just two years into its effort, Cody/Rouge, on the west side, has Skillman’s $14.7 mil- better housing lion investment has stock than the oth- brought in commit- ers, Skillman said. Leaders in the Making ments for another The goal is LISC had target- $64.5 million — or “ ed the neighbor- that we’re Explore nearly 20 master's and doctoral programs in architecture, more than $4 for hoods in 2004 as every $1 Skillman communication, computer science, information systems, interior design, building healthy, part of a broader, engineering (civil, mechanical, electrical and computer), management, and has invested — in $100 million-plus science at ltu.edu/academicsandmajors/graduate_programs.asp. those neighbor- sustainable plan for new hous- hoods. ing, health clinics, Lawrence Technological University • 21000 West Ten Mile Road • Southfield, MI 48075-1058 • 800.CALL.LTU • [email protected] • ltu.edu “We were shocked communities. commercial revital- it happened so ” ization, recreation soon,” said Tonya Deborah Younger, Detroit LISC centers, parks and Allen, vice president other public im- of programs at Skill- provements. man. “We got a lot of good initial “The goal is that we’re building ATTEND THE D BRAND SUMMIT! investments early.” healthy, sustainable communi- Typically, similar multiyear ties,” said Deborah Younger, se- projects don’t leverage other sub- nior program director at Detroit stantial grants until their later LISC. years, she said. The city also is funding efforts WHAT CAN THE D “If the initial investments are in three of those neighborhoods — any indicator, we expect the in- Brightmoor, Osborn and Central vestments to grow towards the end — as part of the Mayor’s Next De- DO FOR YOU? of the initiative,” she said. “We’re troit Neighborhood Initiative, a going to try our best to attract (to- $225 million five-year pilot revital- Don’t miss the Detroit region’s groundbreaking tal) investments of another $500 ization project in six neighbor- million to those neighborhoods.” hoods launched in May. event for forward-looking brand marketers! Skillman launched the 10-year “When the mayor was choosing project in 2006 to foster healthy, his neighborhoods, we advocated 3 Join keynote speaker John Kao, author of Innovation Nation, safe and supportive environments very strongly that there be some and top industry professionals at the D Brand Summit 2008, for children and their families. overlapping,” Allen said. More than 65,000, or a third of De- Other money will come from February 1st at The Henry Ford. troit’s children, live in the target housing developers and other com- neighborhoods, Skillman has said. munity development organiza- Register early at www.dbrandsummit.com and save off the About half of them live in poverty. tions; foundations, including the Skillman’s grants in the neigh- standard $200 registration. Register your group and enjoy Blue Cross Blue Shield Foundation borhoods are paying for such pro- even greater savings! and the Berman Family Foundation; grams as after-school activities, companies, including DTE Energy family support, income-building The D Brand Summit is a groundbreaking one-day event hosted KEYNOTE SPEAKER and personal finance. They also Co. and AT&T Inc.; Wayne County; federal money directed by the by The Henry Ford to share cutting-edge brand-building skills, tools JOHN KAO, AUTHOR OF provide smaller grants to help vol- INNOVATION NATION unteers in the community work Michigan Department of Human Ser- and insights that can make a real difference to the success of with children. vices; Local Initiatives Support Corp.; your organization — and the future of Detroit. Several of the six neighborhoods and The Virgil H. Carr Society of the United Way for Southeastern identified by Skillman overlap www.dbrandsummit.com neighborhoods that the city of De- Michigan. troit and Detroit Local Initiatives Having different organizations Support Corp. are focusing on in funding programs in the same De- MARQUEE SPONSORS SIGNATURE SPONSORS PRESTIGE SPONSORS their funding. troit neighborhoods “allows a Crain’s Detroit Business The Henry Ford Applied Storytelling comprehensive strategy to devel- LISC, part of a New York City- Clear!Blue Communications PVS Chemicals, Inc. DTE Energy based national organization, has op,” Younger said. Model D Strategic Staffing Solutions invested $36 million to improve Sherri Begin: (313) 446-1694, Progressive Printing housing and economic develop- [email protected] Ilitch Holdings

Standards proposed for scanners, heart care The state certificate-of-need trauma designation not be subject commission accepted proposed to volume requirements for use of standards related to special use up to two compact specialty CT computed tomography or CT scan- scanners under the requirements ners and cardiac care at its Dec. 11 but be required to provide data to meeting. the commission on the use and val- According to Dennis McCaffer- ue of those scanners. ty, health policy director for the Open-heart surgery programs Economic Alliance for Michigan, perform 300 or more of the surg- those standards, which still are eries annually. subject to legislative approval, in- Medical centers performing clude requirements that: elective angioplasty have open- Dentists continue to meet a heart surgery programs. $ requirement of 200 procedures a Open heart surgery programs year using compact CT scanners report data to a quality database 5 and use the scanners for care in- run by the Michigan Society of Tho- per copy* volving dental surgery. racic Surgeons. Hospitals with a Level 1 or 2 — Sherri Begin DETROIT BUSINESS MAIN 01-07-08 A 6,7 CDB 1/4/2008 1:11 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS January 7, 2008 2007 Newsmakers of t

GRAHAM BEAL DAN RALPH Director, MICHAEL RON GILBERT BABB JR. president and FINNEY GETTELFINGER Chairman Chairman and CEO President and President Quicken Loans CEO Detroit Institute CEO United Auto Inc./Rock Comerica Inc. of Arts Ann Arbor Spark Workers Financial Dallas Detroit Ann Arbor Detroit Livonia

etroit’s oldest bank n 2007, Graham Beal realized t wasn’t supposed to happen in hen 2007 began, the ilbert, Crain’s Newsmaker dropped a bomb on March what he characterized as his Ann Arbor, the city supposed- biggest issue looming of the Year for 2006, capped D 6 when it put out a press I lifetime contribution to the I ly immune to the layoffs, plant W over the domestic au- G an active year with his an- release that said it was moving its world of art — the culmination of closings and corporate emigration tomakers and their suppliers was nouncement in November that af- headquarters and 200 top execu- years of rethinking the way the De- from Michigan. what would happen in September ter months of speculation, rumors tives to Dallas. troit Institute of Art’s pieces are dis- But it did. In January, drugmak- when the United Auto Workers labor and gossip, he was indeed moving Comerica officials said the bank played. er Pfizer Inc. said it was shuttering agreements with the Detroit 3 ex- Quicken Loans’ corporate head- needed to move its headquarters The museum reopened in No- its sprawling research and devel- pired. quarters and 4,000 employees to closer to its growing markets in vember after closing during the opment campus on Plymouth With the Detroit 3 losing market downtown Detroit. Texas, Arizona and California, summer to a complete reinstalla- Road as part of a $2 billion cost- share and struggling under the Gilbert has options to purchase and that while Michigan was still tion of 5,000 pieces of art. cutting plan. That meant the loss weight of labor costs that are high- two sites: the former J.L. Hudson’s its largest market, it no longer rep- The six-year, $158.2 million ren- or transfer of 2,100 jobs, adding er than foreign competitors, as site on Woodward, up the street resented a majority of assets. ovation and expansion included more to economic bad news cast- well as rising health care costs, from Compuware Corp., or the site The ensuing firestorm of reac- upgrades to the museum’s infra- ing a gloomy pall over Michigan. the automakers were in dire need of the former Statler Hilton Hotel tion caught bank officials by sur- structure, more easily navigated Enter Michael Finney. of an agreement that would allow near Grand Circus Park. prise. For a region that had gone walkways through the museum, He’s the president and CEO of them to cut expenses. One will become the headquar- through a seemingly endless se- benches in the galleries, simpli- Ann Arbor Spark, a nonprofit eco- But a question remained: Could ters. Gilbert also plans to develop ries of layoffs, departures, plant fied language and easy-to-read la- nomic-development organization UAW President Ron Gettelfinger the other site and two other near- closings, acquisitions and bank- bels next to art, and interactive established in 2005 after a merger and the union leadership craft an by smaller sites: the former ruptcies, this didn’t hit people as flip books and videos to put art with the Washtenaw Development agreement with substantial sacri- Lafayette Building at Michigan just one more disheartening an- into context and describe how it Council. fices that was still acceptable to Avenue and West Lafayette Boule- nouncement. It seemed more like might have been used in its day. Pfizer’s economic bombshell rank-and-file members? vard. He’ll also develop two con- betrayal. More than 2,100 people showed was the first major test for Finney After long, tense negotiations, tiguous parking lots on Broadway Bank officials said, though, that up for the Nov. 10 black-tie gala re- in a region that had been known the result was a resounding “yes.” and Library streets. the move would involve only opening, which raised about $4 for growth, expansion and diversi- Gettelfinger and Detroit 3 execu- Gilbert also has been lobbying about 200 employees over three million for the museum. More fication. tives were almost universally other companies to move down- years and that 7,300 employees than 55,000 people traveled In the immediate wake of the praised for the four-year labor town, and said he has commit- would remain in Michigan, in- through the museum during a free Pfizer announcement, Finney and agreements the UAW reached ments from at least three. cluding 2,000 at an operations cen- 32-hour period following Thanks- Spark set up meetings with lead- with General Motors Corp., Chrysler In September, Crain’s broke the ter in Livonia and 2,000 at the IT giving. ers in government, business, acad- L.L.C. and Ford Motor Co. news that Gilbert and three part- center in Auburn Hills, which The reinstallation followed emic and the community. The re- “I commend both the UAW and ners — Kevin Prokop, Brian Her- runs all U.S. operations. years of audience research to iden- sult was a group of action teams the OEM’s for really tying to deal melin and Rob Kramer — had What was galling to many was tify what most attracted — and re- devoted to different aspects of pro- with some very difficult issues,” formed a new private-equity com- that at the time of the announce- pelled — visitors to the museum. viding economic help for potential said Richard Newsted, president pany, Livonia-based RockBridge Eq- ment Ralph Babb Jr. was chair- During the year, the museum’s spin-off companies, creating new and CEO Meridian Automotive Sys- uity Partners L.L.C. man of the board of Detroit Renais- visitor research and resulting visi- jobs, offering training, networking tems Inc. “History books will write Instead of taking the time to sance Inc., the region’s tor-centered exhibits attracted at- and encouraging established com- years from now whether it was the raise a dedicated fund, the compa- economic-development booster tention from other museums in panies and institutions such as the right solution or wrong, but it was ny began looking at deals, with a and chief cheerleader. And three the U.S., Canada and even the Vat- University of Michigan to hire dis- revolutionary.” focus on Michigan companies. As of Comerica’s board of directors, ican. placed Pfizer employees. Central to the labor talks was deals arose, the plan was to raise who had to approve the move, Beal was invited to attend a Within days of the Pfizer an- finding a way to reduce retiree- money as needed from investors, were also members of the Renais- symposium to honor the 500th an- nouncement, Spark set up a sec- health care costs. The solution with each deal its own limited sance board. niversary of the founding of the tion of its Web site concerning was to create voluntary employees partnership. The partners said Before the end of September, Vatican Museums and to begin plans and programs launched to beneficiary associations, or VE- they planned to invest between Babb was gone and the first Com- discussions with him on a 2011-12 handle the fallout. BAs, to be managed by the UAW. $150 million and $200 million over erica press releases carrying the exhibition of artwork from the About 300 Pfizer executives and The VEBA plan is a cornerstone the next three years to acquire Dallas dateline were cranked out. Vatican. researchers have found jobs in of an agreement that some ana- controlling interests in profitable, On Nov. 1, the bank holding — Sherri Begin about 80 companies in Southeast lysts say could reduce GM’s labor growing companies. company officially shifted its char- Michigan, and 300 other Pfizer em- cost gap with foreign competitors Other news from the year: ter from Michigan to Texas, reduc- ployees are still in the area look- by 80 percent, according to Crain’s Ⅲ The continued growth of ing taxes and fees paid to its for- ing for local employment, accord- sister publication Automotive Livonia-based Fathead L.L.C., mer home state. ing to Spark. The organization News. GM agreed to fund a health which markets large vinyl wall Terry Stanton, public informa- also is working to set up business care trust fund that the UAW will graphics of athletes, sports teams, tion officer for the state Depart- incubators for new companies, manage for long-term retiree and TV and movie stars. ment of Treasury, said the bank many of which have said they plan health care at a discount on its $50 Ⅲ The opening in January 2007 will pay the new Michigan Busi- to hire ex-Pfizer staff. billion liability. Similar VEBA of Bizdom U., an entrepreneurial ness Tax on business it conducts Finney, a former vice president agreements were reached with academy funded with $10 million, in Michigan, but will no longer be of the Michigan Economic Develop- Chrysler and Ford. in rented space at Wayne State Uni- taxed on business it conducts else- ment Corp.’s emerging business When the four-year deals go ful- versity. where. He said the department has sectors division, also has been in- ly into effect in 2010, the contracts Ⅲ The Cleveland Cavaliers, which done an estimate of the financial strumental in the talks about what will save the automakers about Gilbert owns, played for the NBA impact to the treasury and said he should be done with the 2 million- $1,000 per vehicle, which trans- title, losing to the San Antonio couldn’t disclose the amount the square-foot, 177-acre research lates into $3.8 billion a year for Spurs. bank paid under the old Single campus. Some of the space has GM, $2.4 billion a year for Ford Ⅲ Quicken Loans grew from Business Tax. been converted to specialized lab and $2 billion a year for Chrysler. about $18 billion in loan closings Ironically, one of Comerica’s ra- space. Much of the savings comes from in 2006 to more than $19 billion tionales for leaving was that Wall Spark also is overseeing the dis- health care, wage and production last year. Street discounted the stock be- tribution of Pfizer-donated equip- concessions that will reduce the — Tom Henderson cause it was a Michigan company. ment to life-science companies legacy costs of each vehicle. On March 5, the stock closed at and the allocation of money from — Brent Snavely $58.54. It closed on Dec. 6 at $46.41. the state for startups and job cre- — Tom Henderson ation. — Bill Shea DETROIT BUSINESS MAIN 01-07-08 A 6,7 CDB 1/4/2008 1:11 PM Page 2

January 7, 2008 CRAIN’S DETROIT BUSINESS Page 7 f the Year

MARIAN ILITCH Owner ROBERT Detroit TAUBMAN SAM ROGER BOB Entertainment Chairman, VALENTI III L.L.C. PENSKE ROSSITER President and Chairman and Co-chairwoman Chairman and Chairman and CEO CEO Ilitch Holdings CEO CEO Taubman Valenti Capital Inc. Penske Corp. Lear Corp. Centers Inc. L.L.C. Detroit Bloomfield Hills Southfield Bloomfield Hills Bloomfield Hills

n 1959, the Wagner Baking Co. oger Penske continues to ob Rossiter closed out 2007 obert Taubman showed t was a busy year for Sam was making Wonder Bread at be a driving force in De- with a pay raise, even after confidence in Southeast Valenti. In May, he helped I 2901 Grand River Ave. In the R troit’s revitalization. B months of criticism from R Michigan when Taubman I take Bloomfield Hills-based suburbs, and her After serving as chairman of Su- major shareholders for his sup- Centers Inc. opened two of the re- TriMas Corp. (NYSE: TRS) public, husband were just starting a pizza per Bowl XL at in 2006, port of a buyout bid from leg- gion’s largest retail projects last raising $139 million for an IPO shop that was to become the Little Penske came back to spearhead endary corporate raider Carl fall. that had been expected to raise Caesar’s chain. the return of the Detroit Belle Isle Icahn. Taubman Centers (NYSE: TCO) $109 million. In June, he was Today, the bakery is gone, but Grand Prix in September. Shortly after it was announced opened its 260,000-square-foot ex- named as chairman of a new $100 there’s still bread being made (and The Grand Prix, which included in February, shareholders balked pansion of Twelve Oaks Mall in Novi million venture-capital fund lost) on that spot. Now, that dough both American Le Mans and Indy- at Icahn’s $36-per-share offer for on Sept. 28. The expansion includes launched by Detroit Renaissance is cash and it’s inside Ilitch’s Mo- Car Series races and was orga- Lear Corp. and questioned a new Nordstrom anchor store, 30 Inc. to invest in venture-capital torCity Casino, which opened on the nized and promoted by the Down- Rossiter’s motivation to accept new retailers and renovations to companies that would in turn in- site in 1999. town Detroit Partnership, returned and promote the offer. existing portions of the mall. vest in young Michigan compa- In 2007, Ilitch’s Detroit Entertain- to Detroit after a six-year hiatus. Rossiter and Lear argued that Less than a month later, Taub- nies. ment L.L.C. completed a $300 mil- Penske is chairman of the partner- Icahn’s price was fair. Rossiter man Centers debuted the Mall at The post of chairman wasn’t lion expansion of gambling space ship. and Lear had just survived a 12- Partridge Creek in Clinton Town- honorary. He quickly became and added a 17-story, 400-room ho- The partnership’s subsidiary, month period characterized by a ship. The 640,000-square-foot mall, chief fundraiser, too, calling on tel. Detroit Belle Isle Grand Prix Inc., number of tier-one automotive which opened Oct. 18, is anchored CEOs around town to get them to The expansion completes the made $5.5 million in infrastruc- suppliers filing for Chapter 11 by Nordstrom, Parisian and MJR pledge financial support. By Octo- commitment to build a permanent ture improvements on Belle Isle bankruptcy. Theaters, and includes about 90 ber, Valenti had commitments for casino in the city, part of the deal for the race. During that frenzy, there was stores and restaurants. more than $50 million, and he ex- that allowed investors to bring Race organizers declined to of- speculation that Lear could be the Taubman’s company was able to pects to top off the fund in the first gaming to Detroit in the mid-1990s. fer specific attendance figures for next supplier to file for bankrupt- use its clout with national retail- quarter of 2008. MGM Grand Detroit Casino opened the Grand Prix races, but said the cy, and the company’s stock price ers to draw in stores that previ- Valenti says he expects to have its permanent facility in October, event attracted more than 100,000 dropped. ously weren’t in Michigan. several Renaissance funds eventu- and Greektown Casino plans its people during Labor Day week- Although Lear said it was never That includes Martin + Osa, a ally, with more than $400 million opening early this year. end. even close to bankruptcy, the ex- clothing store aimed at 25- to 35- under management. And he says Ilitch bought out other MotorCi- About 28 percent of those atten- perience rattled Rossiter. year-olds; For Love 21, an acces- his involvement in the funds ty investors in 2005, putting her to- dees came from outside the tri- “In my personal opinion, I think sories store owned by trendy won’t end with fundraising; he tal casino investment at more that county region, and the event gen- a leveraged buyout is absolutely clothier Forever 21; and a free- will actively monitor performance $1 billion and giving her sole con- erated $53 million in direct the right place for my company to standing Calvin Klein store, one of and demand strong returns from trol of the facility. It was a lot of economic impact to the area, ac- be at this time,” Rossiter said in just five that opened nationwide the VC firms the fund invests in. money, to be sure, but plenty of cording to a study released last an interview with Crain’s in Feb- in the fall of 2007. “I’m going to be on top of them,” dough is coming in the door: Mo- month by the Detroit Metro Conven- ruary. “You’ve got industry con- That such retailers were willing he promised. “This isn’t a charity. torCity had taken in $440.7 million tion and Visitors Bureau. solidation, you have huge global to enter the market We’re going to deliver good re- in gaming revenue through No- In a 2006 interview with Crain’s, expansion, and you have to attack shows confidence in the market, turns.” vember 2007, according to the Penske said he began to think the cost structure.” Taubman said in a September in- Valenti is chairman and CEO of Michigan Gaming Control Board. about bringing the Grand Prix Icahn offered to buy Lear for terview with Crain’s. Bloomfield Hills-based Valenti Capi- That’s more than $15 million, or back to Belle Isle shortly after the $5.3 billion, which included about “There will always be ebbs and tal L.L.C., an investment manager 3.5 percent, ahead of the first 11 Super Bowl. $2.5 billion in debt on top of a price flows in the economy,” Taubman for wealthy families; is executive months of 2006. Penske, who owns Penske Racing of $2.8 billion. said. “We don’t build for any one chairman of TriMas; is president In June, Ilitch opened a 60,000- Inc., decided that his racing con- But several of Lear’s other major economic cycle. The economy is of Masco Capital Corp., the invest- square-foot expanded gaming and nections and his experience work- shareholders argued that Lear was more diversified than most people ment subsidiary of Taylor-based entertainment area at the casino ing with the city for the Super worth much more and criticized realize.” Masco Corp. (NYSE: MAS), which and simultaneously closed other Bowl put him in a perfect position Rossiter for supporting what they Meanwhile, Taubman’s Asian he joined at 22 in 1968; and is on gaming areas, effectively increas- to land the event. considered to be a lowball offer. development division in Hong the board of directors of Detroit ing its total gaming space by 25,000 Meanwhile, Penske Corp. contin- On July 16, 55 percent of Lear’s Kong is pressing forward with two Renaissance. square feet, to 100,000 square feet. ues as Southeast Michigan’s sec- shares were cast against the pro- major retail projects. A former chairman of Michi- The new gambling area includes ond-largest private company, posal, compared with 31 percent Taubman Asia signed tentative gan’s pension board, Valenti a radio bar and radio broadcast ranked by revenue. The company, for the proposal, even though Ic- agreements in May with its first helped found the Michigan Venture booths, a new high-stakes gaming which includes Penske Racing and ahn increased his offer at the last tenants for New Songdo City, a 1.2 Capital Association in 2002, is an ad- area, and a new Signature Club, Penske Automotive Group Inc., re- minute to $37.25. million-square-foot retail and en- viser and mentor to many of the dining room and lounge. ported 2006 revenue of $18.9 bil- But Rossiter not only survived tertainment complex planned for state’s venture capitalists and is The hotel and casino were de- lion, up from $16.6 billion in 2005. the defeat, he quickly extended his Inchon, South Korea. an investor in some of their funds. signed to reflect the city’s automo- Penske Automotive, Penske’s authority and won a pay raise. The company also was selected — Tom Henderson tive, music and sports heritage. automotive dealership chain, has In August, Douglas DelGrosso, in January to be the retail leasing MotorCity brands itself as the picked up significant business in Lear’s president, COO and heir ap- partner for Macao Studio City, a “hometown casino.” the past year. The company com- parent to Rossiter, left the compa- casino resort planned for Macao, — Bill Shea pleted a number of acquisitions in ny he had worked for since 1984. China. The project is being devel- 2007 that are expected to add about Rossiter, who planned to relin- oped by Cyber One Agents Ltd., a $450 million in annual sales. quish his CEO role if the Icahn joint venture of Hong Kong-based Penske Automotive was selected deal went through, took on the ad- eSun Holdings and New Cotai L.L.C., in 2006 to be the exclusive U.S. dis- ditional role of president. a group of U.S.-based investors tributor for Daimler AG’s Smart In November, Lear’s board of di- and investment firms. brand of compact cars, and the rectors approved a 13.6 percent Taubman is looking for addi- company plans to start selling the bump in Rossiter’s base pay, in- tional opportunities in China, Ko- cars in the first quarter of 2008. creasing it from $1.1 million to rea, Japan, India and other Asian — Sheena Harrison $1.25 million, and extended his markets. Overall, the company contract until Dec. 31, 2010. Lear plans to open one mall per year estimates the total value of his and invest an average of $150 mil- compensation package at $6.3 mil- lion per year in the United States lion. and Asia. — Brent Snavely — Sheena Harrison DETROIT BUSINESS MAIN 01-07-08 A 8 CDB 1/4/2008 3:59 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 7, 2008 OPINION Downtown growth amid the gloom he downtown Detroit housing market is getting good news and bad news to start the new year. T The bad news is that the glacial pace of housing sales has resulted in The Griswold and conversion, both condo projects, being shelved. They are among others Tthat have been delayed until demand is stronger, which in many cases depends on potential buyers being able to sell their suburban homes. The good news is that the rental market re- mains strong, with occupancy high and a brand-new project recently announced. (See story, Page 1.) The project, called Cadillac Centre, would blend retail and entertainment such as movie theaters with apartments and would round out development on Campus Martius, which has been evolving as a downtown hub. While we wish every announced project was proceeding as planned, progress is evident in more people and more activity downtown. And some of the pieces are starting to connect. In the Dec. 24 Crain’s, reporters Daniel Duggan and Robert Ankeny reported how development is filling in between down- town and Mack Avenue between John R and Cass Avenue. On tap are three major residential developments, two office pro- LETTERS jects and a high-end grocery store. If these things can happen in this limping-along economy, imagine the potential when we achieve an upturn. A case of mistaken identity

Editor: lution to this often complex and Crain’s Detroit Business Innovators can thrive I was somewhat chagrined to confusing problem. It does not help welcomes letters to the editor. see remarks attributed to me in the process when the press misrep- The new, more rigorous Corporate Average Fuel Economy All letters will be considered for your editorial of Dec. 17 (Opinion: resents the position of the parties standards signed into law by President Bush late last month publication, provided they are “Improved water worth invest- while they are engaged in a quest were opposed by the Detroit 3 and, believe it or not, Toyota, signed and do not defame ment”) that erroneously suggested individuals or organizations. for a resolution. among others. that I endorse Detroit’s upcoming Letters may be edited for length John McCulloch However, the standards provide opportunity for suppliers water and sewer rate hikes. In and clarity. Drain Commissioner Oakland County with strong research-and-development operations or who can fact, no reporter from your publi- Write: Editor, Crain’s Detroit Waterford Township cation contacted me regarding find ways to reduce vehicle weight without compromising Business, 1155 Gratiot Ave., Fixing the darned phone structure or safety. this issue. Detroit, MI 48207-2997. The statements mistakenly at- E-mail: [email protected] Editor: The possibilities: completely redesigned powertrains and tributed to me actually were made This is in response to Keith new features that help reduce fuel consumption. by WDIV reporter Guy Gordon Crain’s Dec. 10 article, “Technolo- the heart of some difficult chal- The point here is not to endorse regulation, but simply to who was paraphrasing Detroit gy is simply against me.” As one lenges being faced by DWSD and reiterate that companies that can innovate are those most like- Water and Sewerage Department who designs and installs the sys- its customers. Those rates also ly to thrive. Director Victor Mercado. tem you mentioned, as well as call- play a central role in a dispute be- center applications used to im- This applies not only to existing companies, but to ones I told Guy Gordon that in light of the challenges of Detroit’s capi- ing litigated before U.S. District prove customer service, I have that are still on the way. Tom Henderson reports on Page 4 that tal improvement program and its Judge John Feikens. I intend to some insight for you — cuss like a Aastrom Biosciences Inc. is, after years of research, on track aging infrastructure, the rate hike present the position of DWSD’s sailor. Whenever you reach a to have some of its stem cell-based tissue-repair products on came as no surprise to me. I did suburban customers in Oakland speech-recognition machine, just the market by 2011 and is further ahead than other companies not say that I endorsed the hikes, County to the Detroit Board of Wa- say the dirtiest words you can in its field. and I did not say that the increas- ter Commissioners in January. muster up. Quite often, the sys- tems are set up to associate curse In our view, Michigan has as much opportunity as any- es are a down payment on the fu- In the meantime, I have been ture. working with Mercado and other words with irate customers and where else to become one of the economic winners of the fu- Escalating rates have been at officials in an attempt to reach a so- See Letters, Page 10 ture.

KEITH CRAIN: The clock is ticking for the auto show A few weeks ago I was asked to If this show currently We have to upgrade often seem intent on chasing away blaming the other guy is long over. address the Detroit Economic Club was somewhere else Cobo and we have to do our biggest and most important If we lost the NAIAS, the entire re- about the automobile industry. It and was offered to us, it right away or we are at show with labor rates that are non- gion would suffer and everyone was an interesting exercise, and I what would we be will- risk of losing this very competitive. knows it. It’s time for all of us to covered a lot of ground in a very ing to pay for it? This important show. There are a couple of cities like acknowledge the importance of short time. show is more important It’s time to stop the New York and Los Angeles that this event that was started in 1989 But one of the major points I than all the other events conversation and start to would do almost anything to wrest and is rapidly approaching its 20th tried to make to the audience was in Detroit combined. It’s do something about this event away from Detroit. anniversary. how fragile the North American that important. Cobo. We have to expand There are suburban cities that The real question is not just how International Auto Show is at And Detroit couldn’t it, and we have to have would be interested in building a much we have to invest to keep the Cobo Center. This is an event that care less. We have to more loading docks to new Cobo Center outside the city. show in Detroit. The question is brings to Detroit half a billion dol- nurture this event. We make it easier and faster And we sit on our hands and wait how much would we pay to have lars in economic development have to make sure that to move in and out. for the inevitable to happen — and any event come to Detroit that each and every year. That makes it all the exhibitors are happy and And, most important, we have to it will if we don’t do something and would contribute a half a billion one of the most important shows support our show. This is not the create a UAW-like labor agree- do it soon. dollars a year? We better figure in all of North America. case today. ment with the unions that all too The time for idle chatter and that out and figure it out quickly. DETROIT BUSINESS MAIN 01-07-08 A 17 CDB 1/4/2008 11:42 AM Page 1

January 7, 2008 CRAIN’S DETROIT BUSINESS Page 17 CRAIN’S CALENDAR EXECUTIVE National Aeronautics and Space Ad- chairman of the WEDNESDAY COMING EVENTS ministration. Troy Marriott. $40 mem- Center for Auto- JAN. 9 Inforum NAIAS Auto Show Breakfast. bers and their guests, $50 others. Con- motive Research. RECRUITER 7-9:30 a.m. Jan. 16. Inforum and BASF, tact: (313) 963-8547. Iroquois Club, An Exploration of a True Lean Transfor- with the Automotive Women’s Al- Bloomfield Hills. mation. 6:30-8 p.m. Society of Manu- liance Foundation. Charlene Wall, $35 members, $15 GENERAL facturing Engineers and Oakland Uni- leader, strategic business develop- Regional Business Organizations and student members, versity. Jamie Flinchbaugh, founder ment, BASF; Sue Cischke, senior vice National Association of Women Busi- $45 guests. Regis- Michigan Peer Review Organization and partner of the Lean Learning Cen- president, sus- ness Owners Greater Detroit Chapter ter by Tuesday CHIEF EXECUTIVE OFFICER ter, Novi, and co-author of The Hitch- tainability, envi- Workshop. 8 a.m.-8 p.m. Jan. 17. Ruth and get a $5 dis- ronment and safe- Klein, branding and productivity MPRO, a non-profit corporation in hiker’s Guide to Lean: Lessons from the count. Contact: ty engineering, Farmington Hills is seeking a Chief Ex- Road. Gold Room, Oakland Center coach. Petruzzello’s, Troy. $150 work- (248) 622-8247. ecutive Officer. Designated by the Ford Motor Co.; Cole Building, Oakland University, shop, VIP reception and networking Center for Medicare & Medicaid and Catherine dinner, or $50 networking dinner 5-8 (CMS), MPRO is the State of Michiga- Rochester Hills. Contact: robert.v. Greener, vice n’s Quality Improvement Organization. [email protected]. p.m. Contact: (313) 961-4748. This is an excellent opportunity for a president, con- CALENDAR GUIDELINES sulting, ACT dynamic leader who has a passion for More Calendar items can be found quality improvement and who wants to NOW. Detroit Crain’s After 5 Happy Hour. 5-8 p.m. be on the forefront of defining quality FRIDAY Marriott at the Jan. 17. After 5 L.L.C. and Crain’s De- on the Web at www.crainsdetroit. health care in Michigan. com. Please send news releases JAN. 11 Renaissance Cen- troit Business. Enjoy drink specials, This is a challenging leadership posi- Cischke ter. $40 members, great conversation and networking. for Calendar to Joanne Scharich, tion; candidates must demonstrate vi- Crain’s Detroit Business, 1155 Adcraft Club of Detroit. Noon. Deborah $50 others. Add $10 after Friday. Con- Fishbone’s, Detroit. Contact: after5de- sionary actions, strategic thinking, pos- Gratiot Ave., Detroit, MI 48207- itive accomplishments, and the ability Meyer, vice president and chief mar- tact: (877) 633-3500. troit.com. 2997, or e-mail jscharich@ to build relationships with stakeholders keting officer, Chrysler L.L.C. and champion the mission of the or- crain.com. You also may submit ganization. Petruzzello’s, Troy. $37 members, $32 NASA’s Impact On Our Nation’s Indus- Where the Auto Industry is Going. 5:30 Calendar items in the Calendar Responsibilities include: Develops the students, $42 others. Contact: (313) 872- try. Noon. Jan. 16. Detroit Economic p.m. Jan. 22. American Marketing As- section of crainsdetroit.com. strategic direction and major policies 7850. Club. Michael Griffin, administrator, sociation Detroit chapter. David Cole, for the organization. Ensures the over- all organizational performance, compli- ance with contracts and customer and stakeholder needs are performed at the highest level of competency. Rep- resents and promotes MPRO both within the state and nationally, among the membership, and with external or- CRAIN’S PICKS TOP ganizations. BRIEFLY Qualifications: Advanced degree in MERGERS, DEALS health care, management, business or UM biz students win prize In a statement released Dec. 10, Branding, marketing targets set clinical. Ten years in healthcare ad- Forrest said the school will mea- Involved in a merger or acquisition ministration. A minimum of 5 years ex- A team from the Ross School of sure the program’s effectiveness for aerotropolis task force in 2007? perience in a senior leadership position Business at the University of Michi- such as COO or CEO. Not for profit in part by monitoring public The aerotropolis executive task Crain’s Detroit Business will be experience a plus. Experience in qual- gan will obtain a grand prize and awareness. ity improvement setting highly desira- force, which is guiding planning covering the possible seed funding for its busi- year’s M&A ble. Strong financial and business “The faculty and companies for Metro Detroit’s “airport city,” background with knowledge of budgets ness plan after winning a private- have to know it’s there and use it. activity in two and financial principles. Experience has set target dates for planning equity fund’s MBA Africa Busi- So if it has a lot of traffic, that’s a ways: and/or understanding of the legislative and branding the regional project. process both at the state and national ness Plan competition. sign of success,” he said. You may be level. Aerotropolis is a proposed de- Knox Lawrence International Call (734) 764-1185 or e-mail um- eligible for the Visit www.mpro.org for more informa- velopment between Detroit L.L.C. invited leading business [email protected] for more first Crain’s tion about MPRO and the services we Metro and Willow Run airports provide. Please submit your resume, schools to submit for the compe- information. M&A Awards cover letter and salary requirements to: tition proposals on microfinance that would make the area a hub competition. [email protected] or fax to 248-305-7087 — Chad Halcom in sub-Saharan. All proposals for commercial development and Crain’s Detroit faced review from KLI represen- logistics centers. Business is working with the Detroit tatives and business leaders. Sphinx gets $500K grant A master plan study is due from chapter of the Association for CRAIN’S Taking the $10,000 grand prize, from Mellon Foundation airport expert John Kasarda Tues- Corporate Growth to honor UM’s team of MBA students day. companies and individuals in the The New York-based Andrew W. following categories: edged out the University of Cali- The Detroit office of commer- RESIDENTIAL fornia at Berkeley’s Haas School Mellon Foundation has made a cial real estate service Jones Lang Best Deal of the Year — Three of Business and Columbia Uni- $500,000 grant to the Sphinx Orga- LaSalle is to present a site analysis awards: Up to $25 million in value; more than $25 million-$100 versity’s Columbia Business nization to fund touring perfor- and best-use plan by Feb. 8. million; and more than $100 PROPERTIES School. mances of the Sphinx Chamber The task force also plans to re- million. KLI plans to make the competi- Orchestra each of the next three lease a request for proposals a Deal Maker of the Year — M&A tion an annual event, with each years. WATERFRONT PROPERTY market branding campaign Feb. 8, experts, lenders, CPAs, consultants Joining the chamber orchestra year’s theme consistently fo- with responses due 30 days later. and attorneys, among others, are A Great Reason to Live in Michigan! cused on Africa; it also hopes to on its first tour next fall will be Come home to your new custom home (your plans or Wayne County Executive eligible. other Sphinx Competition alum- ours). Enjoy water sports and stunning sunsets. use the contest as a platform for Robert Ficano and John Rakolta Lifetime Achievement — Senior- In Brighton at HiltonPointeEstates.com the winners to implement their ni performing as soloists and the Jr., chairman and CEO of De- level executive who has been plan after graduation. Harlem Quartet, an ensemble LUXURY WATERFRONT PROPERTY troit-based Walbridge Aldinger Co., involved in significant transactions — Chad Halcom comprised of past Sphinx Compe- co-chair the task force. and made a significant impact on tition first-place winners. Located in Palm City Florida for sale or Marsha Ennis has been on loan the community. The 2008 tour will include exchange for like property in Oakland from DTE Energy Corp. since Nov. 7 Best Minority/Woman County, Michigan. UM to open referral service about 10 performances, culminat- to serve as the aerotropolis pro- Enterprise Deal ing in the Sphinx Organization’s for business, entrepreneurs gram manager. Applications for the M&A awards: fourth-annual Carnegie Hall per- The University of Michigan will — Robert Ankeny www.crainsdetroit.com/nominate. formance, the nonprofit said in The deadline for entering is Jan. 17. open a campuswide referral ser- an e-mail. Winners will be announced at a vice for businesses and entrepre- — Sherri Begin Regional authority proposed March 13 reception at the Troy neurs early this year. Marriott and profiled in Crain’s. The goal is to provide a one- to run airport in Romeo 609 SW Bittern St., Stuart, FL 34990 stop referral center for business- Software services firms merge Macomb County wants to open Biggest deals of 2007 es and industry researchers seek- Elegant 2 story estate home, 3 Bedrooms + discussion on forming a possible ing UM expertise. under Synergy Plus Crain’s will publish a list of the additional Bdrm/Office/Den, 4 Bath, Sauna, largest deals of 2007 in its Jan. 28 Hartland Township-based WLP regional authority to own and op- Walk Thru Botanical Garden, Pool/Waterfall, The Business Engagement Cen- issue. Included will be mergers and Jacuzzi Spa, 400+' Frontage, Deep Water erate Romeo State Airport in Ray ter, a joint effort of the school’s Of- Software Services and Livonia- acquisitions of at least $10 million, Dock, Private Beach. fice of Development and the Office based Synergy Plus Solutions Inc., Township. The County Commission on commercial-property sales and the $2,500,000 of Vice President for Research two software services and con- largest office and industrial leases. Stephen Forrest, will open in the sulting firms, have merged. Dec. 13 passed a resolution de- Mike Novik clining an offer by the Michigan For mergers and acquisitions, 248-755-5225 888-592-1301 Galleria Building near the south- The entity will keep the Syner- please submit information to eastern edge of UM’s central cam- gy Plus name and have 18 full-time Department of Transportation to Executive Editor Cindy Goodaker at pus during the first quarter of employees and revenue of $2.1 mil- purchase the airport and instead [email protected]. 2008. An exact launch date is pend- lion. The company will maintain plans to discuss authority-type Submit information about CRAIN’S ing. offices in Livonia, Hartland Town- ownership. commercial-property sales and EXECUTIVE Funding will come from the Of- ship, Windsor and Toronto. Terms The state purchased the 265- office and industrial leases to fice of the Provost to provide for were not disclosed. acre property in 1998 to avoid the Assistant Managing Editor Jennette RECRUITER two full-time employees to assist WLP was founded in 1993 and possibility of commercial rede- Smith at [email protected]. WORKS! walk-in visitors and respond to focuses on business-accounting velopment, but since then it has For the criteria: Anita Duncan at calls and e-mails. software. Synergy Plus, founded spent more than $5 million on im- (313) 446-0329 or e-mail To Place Your Ad Call While UM has hosted similar in 2001, helps midsize companies provements and a land purchase [email protected]. The criteria services within individual col- select and implement business IT mandated by the Federal Aviation are at www.crainsdetroit.com. The (313) 446-6068 or deadline is Thursday. leges, the BEC is the first univer- systems. Administration. Fax (313) 446-1757 sitywide information service. — Tom Henderson — Chad Halcom DETROIT BUSINESS MAIN 01-07-08 A 18,19 CDB 1/4/2008 2:01 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 7, 2008 2007 Year in review The budget, the MBT and service tax Goodbye Pfizer QuatRx Pharmaceuticals preps for change Michigan’s business community may be Pfizer Inc. threw a wrench into the region’s Ann Arbor-based QuatRx Pharmaceuticals heading into 2008 with reservations about hopes to be a hotbed for life sciences and Co., which raised more venture capital than our state’s political leadership. biotechnology in January when the compa- any other company in Michigan since the September’s last-minute budget-balanc- ny announced it was closing shop in Ann National Venture Capital Association began ing measures in Lansing that narrowly Arbor. The pharmaceutical maker said it keeping records, said in August it was plan- averted a government shut- would be shuttering its 177-acre ning to go public or be sold, President and down, and the Legislature’s campus on Plymouth Road and cut- CEO Robert Zerbe said. passage — and later middle- 73% ting or transferring about 2,040 of The company, which raised $116.6 million its workers. About 72 percent of the since it was founded in December 2000, is de- of-the-night repeal — of a Percentage of widely unpopular 6 percent executives who nearly 1,200 employees offered veloping drugs to fight endocrine, metabolic tax on services in November, disapproved of transfers have accepted them. and cardiovascular diseases. tent to purchase the money-losing left many of us wondering budget-balancing Riverview Hospital in Detroit from St. John who’s in charge. measures Down by the riverside Health for $20 million. Auf Wiedersehen to VW Michigan executives polled The DMC and Michigan AFSCME Council in an Epic/MRA survey for Detroit celebrated $300 million Volkswagen of America Inc. moved its North 25 filed a lawsuit against the institute in Crain’s and Honigman, Miller, in improvements to its riverfront American headquarters to Herndon, Va. 87% May, seeking to prevent the cancer institute Schwartz and Cohn L.L.P. with Detroit International River The automaker wanted to be where it had a Percentage of from moving to Riverview, most of which weren’t happy. Almost 73 per- Days in June. larger concentration of U.S. customers and executives who closed at the end of June. announced in September it would be mov- cent of executives surveyed disapproved of the The event showcased the com- The DMC claimed it could lose $25 million ing about 400 positions from its Rochester disapproved of the budget-bal- failed service tax pletion of 3.5 miles of Riverwalk annually and be forced to close one or more Hills and Auburn Hills offices. ancing measures by Gov. Jen- that stretched from Cobo Center to hospitals if Karmanos moved off-campus. nifer Granholm and the Leg- the Belle Isle Bridge. Wayne County Circuit Court Judge islature, and 87 percent disapproved of the Old cement silos were demolished, mak- Inventor retires Gershwin Drain granted the DMC an in- failed service tax. ing way for plazas, fountains, benches and even a carousel. junction to stop the move in mid-July. Stanford Ovshinsky, The new greenbelt was credited with at- chief scientist and Vindication for Valassis CEO tracting hundreds of millions of dollars for founder of Energy Conver- more residential and commercial develop- Cerberus buys Chrysler sion Devices Inc. in Detroit, When Valassis Communications Inc. CEO ment on what had been vacant and aban- New York City-based private-equity firm retired in August from Alan Schultz decided to acquire Advo Inc., a doned property along the Detroit River. Cerberus Capital Management L.P. shocked the the company he and his Connecticut-based direct-mail giant, in a wife founded in 1960. $1.2 billion deal in July auto world when it acquired Chrysler L.L.C. in Aug. in a $7.45 billion deal and then brought Time magazine called 2006, Wall Street wanted Bright lights, big city him “A Hero for the Plan- his head on a platter. in Bob Nardelli as CEO. Ovshinsky There’s a new look to Detroit’s skyline. et” in 1999, and in 2006 Today, Schultz is get- Nardelli, an auto-industry outsider, wast- It’s the light tubes illuminating the exteri- Ovshinsky was called “the Edison of our age” ting a thumbs-up from in- ed no time assembling his new management by The Economist. vestors who saw third- or of the new 400-room MotorCity Casino ho- team, including the hiring of Jim Press, a quarter net income for tel. The opening of the new MGM Grand De- longtime Toyota North America executive troit Casino Valassis increase 148 per- and hotel and the MotorCity known for his attention to detail and ability Regional unity: Great Lakes compact Casino hotel, owned by Marian Ilitch, Schultz cent, from $6.6 million in to build strong relationships with dealers. Civic and government leaders in Michigan the year-ago quarter to brings a whole new vibe to nightlife in the and neighboring states are gaining traction $16.4 million in 2007. Almost all the revenue D. Also, the Westin Book Cadillac, a $180 in an effort to launch a 12-state regional com- boost came from Advo business ... and the million hotel and condo project at Michigan Compuware’s wish: A Covisint IPO pact. The Great Lakes Economic Initiative hopes next two years look even better, analysts say. Avenue and Washington Boulevard, is ex- A high-tech IPO that’s not from Silicon Val- to better leverage the Great Lakes region’s pected to open in October. ley? That’s what Compuware Corp. wants. economic clout, lobbying influence and work- Another pro baseball team The corporation has hired Morgan Stanley force education. DMC puts brakes on Karmanos’ move to study the feasibility of raising $1 billion Baseball Heroes of Oakland County L.P. an- in an initial public offering for its Com- Northwest lurches out of bankruptcy nounced plans to spend $11.5 million to build The Detroit Medical Center won a fight to puware Covisint subsidiary. a stadium and field the Midwest Sliders, now keep The Barbara Ann Karmanos Cancer Insti- Compuware hopes to spin out the compa- When Northwest Airlines Corp. emerged in Slippery Rock, Pa., in 2009 to play in the tute on its Detroit campus. ny sometime this year, Covisint President from Chapter 11 bankruptcy protection on Frontier League, the equivalent of Single-A mi- The institute in April signed a letter of in- Bob Paul said. May 31, it wasn’t a smooth takeoff. nor-league baseball. The team will be The airline, whose largest hub renamed the Oakland County Cruisers. is Detroit Metropolitan Airport The stadium will be next to Summit with more than 500 daily flights, Place Mall in Waterford Township. canceled 4,000 flights in June and Baseball Heroes is led by Rob July, which cost the airline up to Hilliard, owner of consulting firm $50 million. Manhattan-on-Rouge Communications; The carrier blamed the cancel- Tim Nick, owner of Heroes Bar B Q & lations on work rules with its pi- Brew; and the owners of the Hutten- lots that exhausted their avail- able flying hours before the end locher Group, all of Waterford of the month. Township. And pro football, too Giddyap for horse racing The six-team All American Football Jerry Campbell, chairman of League said in August it has a deal in Citizens Republic Bancorp in Ann principle to become Detroit’s Arbor and owner of one of the newest professional football fran- state’s largest horse stables, is in chise. Owners hope they’ll be ready the homestretch of bringing thor- for its Team Michigan to play its oughbred racing back to Detroit. home games at Ford Field when the Campbell has plans for a $70 season begins in April. million to $80 million thorough- The for-profit spring league is bred track in western Wayne aimed primarily at recent college ASSOCIATED PRESS County that would employ 2,000 to players who didn’t make the pros. House Speaker Andy Dillon, Gov. Jennifer Granholm and Senate Majority Leader Mike Bishop locked horns last year. 3,000 people. DETROIT BUSINESS MAIN 01-07-08 A 18,19 CDB 1/4/2008 2:01 PM Page 2

January 7, 2008 CRAIN’S DETROIT BUSINESS Page 19

NOTABLE DEATHS IN 2007 Ⅲ Louis Allen, 77, former president of Manufacturers National Bank, May 20. Ⅲ Charles Audette, 86, former partner in Audette Cadillac Inc. and former owner of Audette Toyota Inc., May 7. Ⅲ Warren Avis, 92, owner of Avis Farms Research & Business Parks and founder of Avis Rent A Car, April 24. Ⅲ Mollie Beyer, 81, co-owner of the Pontchartrain Wine Cellars in Detroit, April 20. Ⅲ S. George Binson, 93, founder of Binson’s Home Health Care Centers, Nov. 20. Ⅲ Irving Bluestone, 90, former vice president of the United Auto Workers, Nov. 17. Ⅲ Ernie Brooks, 64, president of Brooks Kushman P.C., Aug. 2. Ⅲ William Leo Cahalan, 75, former Wayne What did County Circuit Court judge, Jan. 31. Ⅲ Paul Christy, 69, veteran Detroit radio broadcaster, June 4. Ⅲ Jim Davis, 66, longtime Detroit radio and TV personality, Feb 11. Ⅲ Robert “Butch” Edgar, publisher of the News, May 10. you think? Ⅲ Phillip Feigenson, 85, former co-owner of Faygo Beverages in Detroit, May 6. ANDROSOV KONSTANTIN/ISTOCK.COM Ⅲ Henriette Feikens, 91, wife of U.S. District Judge John Feikens, March 13. THE DOGS OUT!” would not for fear of a recall or project that includes Detroit. And Crain’s solicited reader Ⅲ Anthony Filippis Sr., 91, co-founder of Wright not getting re-elected.” just the fact that it has been feedback on some of the — Marcie Brogan, Birmingham & Filippis Inc., Jan. 23. — Roman Nestorowicz, Warren talked about for at least 30 years Ⅲ business stories that “Yes, this way city management just turns everybody off because Randall Fox, 66, vice chairman of Oxford Bank generated buzz around will be focused on true, they know it will never happen. If Corp., Aug. 16. these parts last year. competitive and measurable 3. What highly hyped business you want to ride a mass-transit Ⅲ Bernice Gershenson, 86, philanthropist and results, not on using biased move, initiative or plan is never line, you go to Chicago or widow of developer Aaron Gershenson, April Our editorial team — opinions to perpetuate mediocrity Toronto.” 10. and cronies.” going to happen? Ⅲ sometimes tongue-in-cheek — Chris Kole, Royal Oak Bernard Giampetroni, 77, former executive — crafted four questions — Alex Ionescu, Warren director of the Macomb County Planning and “Growing corn for ethanol.” Economic Development Department, Nov. 13. with the hope they would “No. They can deal with Detroit — Robert Barba, Ⅲ Edward Gramlich, 68, former dean of the raise eyebrows and provoke later. Let’s straighten out the Ann Arbor University of Michigan School of Public Policy bigger mess. The play would be and a former member of the board of governors both serious and light- “The Aerotropolis the state of Michigan. I’ve got to of the Federal Reserve, Sept. 5. hearted responses. Zone between believe money and lots of support Ⅲ Joseph Hammond, 78, former CEO of Jervis B. Many of you weighed in. would be readily available.” Romulus and Ypsilanti will be Webb Co., March 1. Here’s what you told us: — Patrick Cavanaugh, difficult at best to Ⅲ D. Duane Hurtt, 38, CEO, Think Detroit PAL, Birmingham get off the ground. Jan. 20. Ⅲ “It’s an intriguing question, but This is primarily due Cheryl Johnson, 57, former president of the 1. How much will $1 Canadian be United American Nurses and president of the what would private-equity guys to the fact that we worth in U.S. money next must overcome Michigan Nurses Association, Oct. 28. know about running a ALEX SLOBODKIN /ISTOCK.COM major barriers Ⅲ Rachel Keith, 82, physician and wife of Sixth Christmas? successful city? No.” (beyond traditional regulatory 4. What New Year’s resolution Circuit Court of Appeals Judge Damon Keith, “$1.10. The U.S. — Martin Hale, limitations): would you like state lawmakers Jan. 4. dollar will remain Royal Oak 1. We are a peninsular state far Ⅲ Jack Macauley, 77, former president and weak against “You’ve got to from the natural path of to make? chairman of Macauley’s Office Products, Feb 6. foreign currencies be kidding. interstate commerce, which Ⅲ Mary McDevitt, 76, the first female judge — particularly the “Vote like they were paying the Although requires Michigan to have an elected in Macomb County, March 25. euro. Global bills from their pockets, not private export product to support Ⅲ demand for ours.” James McInerney, 52, co-owner, McInerney’s businesses, transport routes. Woodhaven Chrysler Jeep, Jan. 20. Canadian natural 2. Entrepreneurs create — Cindy Vezinau, resources, such as such as Ⅲ Milton “Jack” Miller, 94, a founding partner of Cerberus, may innovative commerce but are St. Clair Shores Honigman Miller Schwartz and Cohn, March 6. lumber, will remain severely hampered by limitations contribute valuable Ⅲ strong bolstering the to capital in this market. Doris Mosher, 83, former chair of the Oakland Loonie. Before we get too managerial insight “Divert all campaign funding to Community College Foundation, Oct. 17. and innovative ideas for Transportation is a highly excited about Canada, let’s leveraged and capital-intensive support a search campaign to Ⅲ James Murray, 41, president and COO of not forget their 60 percent tax problem-solving, outsiders don’t identify fresh, idea-driven, Slavik Murray Real Estate Group L.L.C., April 17. understand the legal and social industry with commoditized profit rates and the fact the entire motivated people with some track Ⅲ complexity of providing good margins. Kenneth Neumann, 67, founder, Neumann country has the population of just record of getting things done in Smith Architecture, Jan 19. services to the city’s (residents) 3. The business climate in one U.S. state. According to the private sector to replace and other stakeholders. Michigan has been dominated by Ⅲ Chuck O’Brien, 66, former chairman of The Google, California has a larger imagery and blue-collar themselves.” Detroit Medical Center, March 29. population than all of Canada, Simplistic attempts at privatization end up as fiascos.” entitlements for so long that it — Ray Krause, Medina, Ohio Ⅲ Duane Rao, 54, founder of Metro 25 Tire and and better health care.” may well take an entire — Peter Ewald, Detroit provider Big Net Holdings Inc., Jan. 28. — Bruce Babiarz, generation to reprogram out Ⅲ “Find ways to run the state more Justin Ravitz, 67, former lawyer and Detroit Bloomfield Hills “No. Ask the unemployed workers thinking and redeploy our Recorders Court judge, Dec. 26. economically. Difficult economic “96 cents. I believe that our from GMAC Mortgage and energies and talents to benefit Ⅲ Walter Richburg, 4, the only African-American times cannot be solved by taking economy will show growth and Chrysler how good it was to be the local economy in Michigan.” president of UAW Local 600, Jan. 27. more taxes from citizens. the feds will continue to lower bought by Cerberus. There’s a — G. Loren White, Ypsilanti Ⅲ Roger Smith, 82, former CEO of General interest rates, which should reason the dog guards the gates Businesses have to economize to Motors Corp., Nov 29. increase spending and of Hades!” operate within their revenue and “A brand-new world-class Ⅲ Shaaron Varon, 70, co-owner of advertising strengthen the dollar.” — Marian Nimbach, resources. State government convention hall within the city business Varon and Associates, Aug. 15. — Shaun Miller, Pontiac Bloomfield Hills should, too.” limits of Detroit.” Ⅲ Raymond Wilkening, 78, former president of — Chuck Hakes, Lathrup Village Barton Malow Co. in Southfield, Jan. 9. “$1 Canadian = $1.10 U.S. by “Absolutely a good thing. Then — Paula Ciszewski 12/31/2008. Because the clean house of the dead wood, Ⅲ Sherwin Wine, 79, founder of the Birmingham Canadians have more energy corruption, graft, outsource “Please stop bickering, work Temple in Farmington Hills, July 21. “So many to choose from, but my resources than the U.S.” services, and manage the city as collaboratively between parties Ⅲ John Woodford, 84, former director, Michigan — John Selden, Grosse Pointe a business.” vote goes to the Detroit-to-Ann Department of Transportation, Oct. 28. Arbor rail system. Honorable and don’t add any pork projects — Kurt Burwinkle, to make politicians look like Ⅲ Linda Woolwine, 53, president of AAA mention: Horse race track at the Michigan Inc. in Dearborn, May 14. Rochester Hills Silverdome.” they’re doing something for their 2. Would it be a good thing or a bad Ⅲ Irvin Yackness, 91, executive vice president “Yes, it would. Cerberus would be territories.” — Tom Baiocchi, Northville and general counsel for the Building Industry thing if Cerberus bought the city of able to make the tough choices — Bryce Rudder, Dearborn Association of Southeastern Michigan, July 15. Detroit? needed to turn the city around, to “The rail service linking the northern suburbs to Detroit and Ⅲ Hal Youngblood, 77, WJR AM 760 producer privatize some functions, “They should commit to taking an downsize city government and out to the airport and beyond. Too and broadcaster, Jan. 24. “Government run as a business accounting class and learn the by businesspeople responsible balance the budget. A private- much political bickering, lack of Ⅲ Pearl Zeltzer, 81, philanthropist and civic for product quality and customer management firm could take the funds, and the unwillingness of definition of a real budget cut.” activist, April 11. satisfaction? Let’s go for it! LET hard stands that elected officials people to support any regional — Mike Marowske, Warren DETROIT BUSINESS MAIN 01-07-08 A 20,21 CDB 1/4/2008 6:11 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 7, 2008 Meridian: Company bounces back, eyes expansion ■ From Page 3 into effect this year caused a surge in sales Both DiPietro and Newsted declined to from its landlord, Dearborn-based Ford Land. N-Gate Corp.; Continental Structural Plastics in 2006. disclose the plant’s annual revenue. Meridian was already leasing 30,000 square Inc.; and Plastech Engineered Products Inc. “We had expected (commercial truck Buying the Ohio plant is a good move, feet at 999 Republic Drive. Continental acquired ThyssenKrupp Budd sales) to be down about 35 percent,” Newsted said Jeff Mengel, a partner and director of Newsted said Meridian needs the space as Co.’s plastics division in June 2006, and Flex- said, “and it’s more like 50 percent.” the plastics industry team it prepares to take on the engineering staff it N-Gate announced an agreement in Decem- for Plante & Moran P.L.L.C. But while sales slid last year, Meridian will inherit from the Sandusky acquisition, ber 2006 to acquire a plant in Milan that has big plans for 2008. in Southfield. as well as to add staff to handle work it is makes plastic bumpers and fuel tanks from Meridian still expects to buy an automo- “I think of them as be- currently bidding on. Automotive Components Holdings. tive-light manufacturing plant from Automo- ing a front-end module “We have a significant amount of quoting Meanwhile, Plastech has gained market tive Components Holdings in a deal that has manufacturer … and to activity going on with all of our customers,” been stalled for several months. the extent that lighting is Newsted said. “It’s the biggest backlog of share by snapping up small, troubled rivals. Meridian announced a preliminary agree- hung onto the bumper quoting activity that I certainly have seen in But on Dec. 7, debt rating agency Standard & ment to buy the Sandusky, Ohio, plant last systems, I think that is a my seven years (at Meridian.)” Poor’s announced that it has put Plastech’s June from Ford Motor Co., but Ford’s negotia- nice adjacent approach,” But while Meridian may be planning to debt under review and might lower the rat- tions with the United Auto Workers delayed Mengel Mengel said. expand, it also closed plants in Grand ing. Crain’s sister publication Automotive discussions. Newsted said acquiring the plant pro- Rapids and Jackson, Ohio, last year. News reported that Plastech fired 100 em- Newsted said he expects the deal to close vides more than just sales volume. With The closure of the Ohio plant ended a ployees and cut salaries 5 percent for 800 early this year. headlights, Meridian can build more of the long-running labor dispute with Pittsburgh- other staffers. Automotive Components is a temporary front-end module on its own. based United Steelworkers. Newsted said the Kelvin Scott, Plastech’s top lawyer, told company managed by Ford created to sell 23 Newsted said Meridian plans to open decision to close the plants was difficult, but Automotive News that Plastech is not suffer- plants Ford agreed to take back in 2005 from Mexican plants in Hermosillo in October said the cost to operate the plants was too ing financial problems. The layoffs, he said, Van Buren Township-based Visteon Corp., high to justify due to declining production and in Saltillo either late this year or early were an overdue correction to declining pro- the parts supplier that Ford spun off in 2000. in 2009. volumes. duction volumes. “We are continuing to work on reaching a Meridian plans to make parts mostly for Meanwhile, in Ionia, Meridian trans- Meridian is also bracing for reduced pro- final agreement with Meridian,” said Della Ford in Hermosillo and for Portland, Ore.- formed a steel chrome-plating line into a DiPietro, director of public affairs and govern- based Freightliner L.L.C. in Saltillo, Newsted plastic chrome-plating line. Now that plant duction volumes, Newsted said. ment relations for Automotive Components. said. He declined to disclose projected capi- is making plastic chrome-plated grilles for “I do think 2008 will be a difficult year for The plant employs about 1,000 workers tal investment costs for either plant. Ford’s Expedition and Explorer. the industry. I think it has the potential to and makes front, rear and signal lighting for And, at its headquarters in Allen Park, Meridian competes in an industry niche be a reasonable year for Meridian,” he said. nearly 60 percent of Ford’s North American Meridian recently signed a lease to take on against a number of large, capable compa- Brent Snavely: (313) 446-0405; production. an additional 20,000 square feet of space nies, including Magna International Inc.; Flex- [email protected]

State aims its biz-marketing out-state Tech: Pay up, jobs down ■ From Page 3 LANSING – Michigan is retooling efforts to adver- year’s support comes from several sources: $3.75 tise itself to business. million from the 21st Century Jobs Fund, $5.5 million report covers 2004-2005 — is that declined as the auto industry has Like tourism promotional funding, state business- in MEDC funds derived from casino revenue, $1.4 once job figures are posted by retrenched, the number of compa- marketing dollars are in tighter supply this year. And million from the state general fund, and $700,000 un- county and industry, his staff then nies engaged in high-tech has re- the reduction means the state will cut back on what it spent from 2007. has to research how many jobs in mained stable. spends in Michigan and target its out-of-state spend- Total business-marketing spending will shift each industry are actually tech-re- The report breaks technology ing on specific industries or international invest- from the previous 80 percent out-of-state and 20 per- lated, and in what tech sector they into six sectors — advanced auto- are. ment, as opposed to broader promotion. cent in-state, to about 95 percent out-of-state and 5 motive, advanced manufacturing, “Health care is a good example. For example, the Michigan Economic Development percent in-state. Dancsok said in-state marketing chemical and material, informa- It’s growing very rapidly, but most Corp. is likely to home in more on regions that house will probably be tied to specific events, like the North tion technology, life sciences and of those jobs are in care delivery, industries the state is trying to foster, like alternative American International Auto Show and the SAE 2008 other. they’re not high tech,” Anderson energy, said MEDC executive vice president Lisa World Congress. The report considers homeland said. Dancsok. The MEDC will continue to use the Upper Hand security and defense too broad to be Ken Rogers, Automation Alley’s a single sector, cutting instead The MEDC has $11.35 million this year to spend advertising campaign, which features actor Jeff executive director, said that there across the others, but gave exam- on business marketing, down nearly 13 percent Daniels and highlights Michigan companies. was good news amid the job loss, led ples of local companies benefiting from the $13 million it had available last year. This — Amy Lane by substantial gains in the average from federal spending in those ar- wage in each technology sector. eas. They include Ann Arbor-based The average high-tech wage rose 5.1 percent, from $65,701 to $69,068. Adaptive Materials Inc., a maker of Rogers said he was also encour- portable fuel cells; Troy-based Nu- Tourism: State cuts in-state promos aged that the region continues to Soft Solutions Inc., an IT company diversify; the one tech sector that that offers network security and ■ From Page 3 grew in that period was classified services for first responders; and as “other technologies,” which Ann Arbor-based Sensicore Inc., and more vibrant economies.” state tourism Web site in the country … we’re kind added 456 jobs, which makes handheld devices to The state will continue to run its Pure Michigan of locked and loaded. or 0.7 percent, to monitor water quality. advertising campaign in its primary out-of-state mar- “All we need is the rest of the funding. But we un- a total of 65,808 The report also noted the pres- kets: Chicago, Indianapolis, Cleveland, Milwaukee, derstand the realities of that too. We’re going to jobs, and total ence of Warren-based U.S. Army Cincinnati and Ontario, Canada. Most spending will hope for the best, and keep doing the best that we payroll for the Tank Automotive Research, Develop- be in the spring and summer, when 60 percent of all can with it.” sector climbed ment and Engineer Center, which out-of-state leisure travelers visit the state. Fall ad- In 2006 and 2007, a one-time infusion of money 1.3 percent to employs more than 1,200; and War- vertising will continue in Chicago, at a reduced level. from the 21st Century Jobs Fund plumped total state $4.7 billion. That ren-based U.S. Army Tacom Life Cycle The state will not do any TV advertising in Michi- tourism spending to $13.2 million annually. sector has Management Command, which em- gan this year. In-state spring and summer advertis- Still, the amount approved for 2008 is above prior grown from 13 ploys about 3,500 and contracted ing will be limited to radio and billboards, and there general-fund annual allocations of $5.7 million, Rogers percent of tech for $14.8 billion in goods and ser- will be no fall in-state advertising, although the which is good news, said Lisa Dancsok, MEDC exec- employment in 1998 to 21 percent vices in 2005. state will continue to pump that season’s travel on utive vice president. in 2005. “When people think of home- its Web site and through public relations and other In addition, the budget bill includes language al- “The big thing I get out of this re- land security or defense spending, efforts, Zimmermann said. lowing an additional $4.3 million in tourism and port is hope,” said Rogers. “There they think it happens only on the He said the choices weren’t easy, given the momen- business-marketing spending this year if more are a lot of reasons for hope, and east or west coasts. In fact, a lot of tum generated by the Pure Michigan campaign. funds become available. it’s not foolishness, it’s hard facts. Among other things, the campaign last year was The likelihood of that additional allocation remains it is going on right here,” said An- We’re poised for a rebound.” derson. “Unfortunately, we live in named top state campaign of its type in the country by to be seen. But O’Callaghan and Yencich said a $353.1 He said other reasons for opti- a dangerous world, and in a dan- the Travel Industry Association of America. It is credited million state surplus, announced last week after the mism include a record $38.7 mil- gerous world, you need the best for driving record-breaking traffic to the state’s Web state closed its books from the 2007 fiscal year, could lion in small-business innovative tools to keep your citizens safe. site, which from April through November was the help. They said they would like a portion of the sur- research grants made to local com- most visited state tourism Web site in the country. plus put toward the Pure Michigan campaign. panies in 2005 through the U.S. This report shows that Michigan is “We feel really good about all of that. We’re just “There are few, if any, state expenditures that can Small Business Administration, 53 in a great position to fill that de- going to keep plugging along with the dollars we’ve deliver such a swift and immediate return on invest- percent funded by the U.S. Depart- mand.” got,” Zimmermann said. “We now have this award- ment, in new jobs and tax revenues,” Yencich said. ment of Defense; and that while the Tom Henderson: (313) 446-0337, winning and effective campaign, the most popular Amy Lane: (517) 371-5355, [email protected] number of tech jobs in the area has [email protected] DETROIT BUSINESS MAIN 01-07-08 A 20,21 CDB 1/4/2008 6:11 PM Page 2

January 7, 2008 CRAIN’S DETROIT BUSINESS Page 21

www.crainsdetroit.com Downtown rentals fare better than condos EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ASSOCIATE PUBLISHER Christopher Crain, (313) BY DANIEL DUGGAN lending markets, said Austin Dec. 31, 2007. 446-1645 or [email protected] AND ROBERT ANKENY Black II, a Realtor in the Max Roxbury had only produced 10 EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] CRAIN’S DETROIT BUSINESS I think there are a Broock Birmingham office special- signed agreements by mid-Decem- MANAGING EDITOR Andy Chapelle, (313) 446- “ izing in Detroit sales. ber, and on Dec. 21 the DDA with- 0402 or [email protected] New York developers embark- lot of developers out People can’t sell their suburban drew that part of its development ASSISTANT MANAGING EDITOR/FOCUS Jennette ing on a mixed-use project in De- Smith, (313) 446-1622 or [email protected] homes, so they don’t have pro- agreement with Roxbury. BUSINESS LIVES EDITOR Michelle Darwish, (313) troit’s business district will now there contemplating ceeds to use for buying a Detroit DiRita said the Griswold has 446-1621 or [email protected] follow two troubled residential de- condo; and the lending market pre-sales, making it different than COPY DESK CHIEF Gary Piatek, (313) 446-0357 velopments within a two-block ra- at least some or [email protected] makes it hard to take on more the situation at 1001 Woodward, GRAPHICS EDITOR Nancy Clark, (313) 446-1608 dius. debt, he said. where plans for 128 condo units or [email protected] Plans have been shelved for The component of COPY EDITOR Vic Doucette, (313) 446-0410 “When you’re talking about were withdrawn when a land con- or [email protected] Griswold-Capitol Park, an 80-unit for-rent. units at a higher price-point, it’s tract for the building was forfeited DATA EDITOR Anne Marks, (313) 446-0418 or condo development to be built at hard for people to trade up when because building ownership failed [email protected] 150 Michigan Ave., and the condo ” WEB GENERAL MANAGER Alan Baker, (313) 446- Colin Hubbell, developer they can’t sell their existing to pay $5.4 million in principal and 0416 or [email protected] conversion at 1001 Woodward has home,” he said. interest. WEB EDITOR Kevin Hill, (313) 446-0473 or been dashed as the building fell at 1424-1448 Woodward Ave. just That very scenario has been the The Griswold-Capitol Park is [email protected] WEB DESIGNER/PRODUCER Ai-Ting Huang, into receivership. north of the Compuware Corp. head- challenge facing pre-sales for the not indicative of a bad downtown (313) 446-0403, [email protected] On the heels of those projects, quarters in 2002, it was hard to $30 million Griswold-Capitol Park, residential market, DiRita said, EDITORIAL SUPPORT Anita Duncan, (313) Northern Group Inc. is to develop the 446-0329; Joanne Scharich, (313) 446-0419 keep it 70 percent occupied, said said David DiRita, a partner in the because the project can still hap- NEWSROOM (313) 446-0329, FAX (313) 446- Cadillac Centre mixed-use retail Andrew Gutman, CFO for the Detroit-based Roxbury Group P.L.L.C., pen. A 10-story parking garage 1687 TIP LINE (313) 446-6766 and residential project. Southfield-based real estate com- which is developing the project. built under the site will start soon, REPORTERS Taking a different approach pany. The buildings are currently “Getting full purchase agree- with steel supports to be included Brent Snavely, senior reporter: Covers auto suppliers, steel and restaurants. (313) 446-0405 than other projects, the Northern 97 percent occupied. ments with full deposits is a chal- for a condo building. or [email protected]. Group has opted to go the route of Likewise, Merchants Row on lenge when they have a home they Overall, he said there is still Robert Ankeny: Covers the city of Detroit, Wayne County government, and law. (313) 446-0404 or rental housing, which developers Woodward north of State Street need to sell, in this market,” he strong demand for Detroit residen- [email protected]. Sherri Begin: Covers nonprofits and education. working in Detroit say has shown has kept occupancy at 90 percent said. tial products and expects other de- (313) 446-1694 or [email protected] strong demand. for its 161 rental lofts, said Danny DiRita emphasized the project velopments to be successful. Andrew Dietderich: Covers health care, transportation, international business and “I think there are a lot of devel- Samson, a vice president with the has been shelved, not canceled, due “While Michigan and Detroit re- biotech. (313) 446-0315 or opers out there contemplating at Sterling Group, which owns the to lagging sales of the condo units. main in one of the worst economic [email protected]. Daniel Duggan: Covers real estate and hospitality. least some component of for-rent,” apartments. Detroit’s Downtown Development slumps in 16-17 years, there is still (313) 446-0414 or [email protected] Chad Halcom: Covers services, environment and said Detroit-based developer Colin “Rental demand downtown con- Authority, which sold Roxbury the more demand for residential prod- Oakland and Macomb counties. (313) 446-6796 Hubbell. “It might be a scenario tinues to be strong, and I believe air rights for the development, had uct downtown than anywhere else or [email protected]. Sheena Harrison: Covers small business, retail where you can have a full building condo demand will improve as agreed to include $7 million in in the region,” he said. and nonautomotive manufacturing. (313) 446- and at least break even until the well,” he said. steel for the condos in the garage Daniel Duggan: (313) 446-0414; 0325 or [email protected]. Tom Henderson: Covers banking, finance and market comes back.” What currently hurts for-sale construction orders on condition [email protected] technology. (313) 446-0337 or [email protected]. When The Farbman Group started residential in Detroit is the one- that Roxbury had signed purchase Robert Ankeny: (313) 446-0404; Bill Shea: Covers media, advertising and leasing a three-building complex two punch of bad housing and agreements for 20 of the 80 units by [email protected] marketing, entertainment, the business of sports, and Livingston and Washtenaw counties. (313) 446-1626 or [email protected] LANSING BUREAU Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING SEE: ADVERTISING DIRECTOR Marla Downs, (313) Golden’s eyewear chain has a national vision 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) ■ From Page 1 393-0997 ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, more stores in trendy shopping Group S.p.A. for $120 million in 2006, jardins as SEE’s president to head Cathy Ross, Dale Smolinski destinations where the company and the deal closed in February. the company’s expansion. Des- WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 can get street-front property with They’re Luxottica owns several eyewear jardins, 46, worked most recently CLASSIFIED MANAGER Melissa McKay, (313) high pedestrian traffic. For in- “ store brands, including Pearle Vi- as chief stores officer for New 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Greg stance, Golden believes Manhat- (Luxottica) going sion and Lenscrafters. York City-based Delia’s Inc., a retail Evangelista, 313-446-1655 tan can support four to six SEE While Luxottica expressed some company that sells clothing and MARKETING DIRECTOR Michelle Minor stores. for mass America. interest in buying SEE, Golden accessories for teens. EVENTS MANAGER Nicole Wiedling There are limits to SEE’s expan- said he didn’t sell the chain be- MARKETING ASSISTANT Jennifer Dunn We’re going for a Under Desjardins’ watch, MARKETING ARTIST Sylvia Kolaski sion, Golden said. cause he believed the concept had- Delia’s opened 50 new stores in 27 SALES SUPPORT Suzanne Janik, Andrea “It could be as many as 150 or 175 n’t reached its full potential and he months. Before that, he led New Beckham, YahNica Crawford much different didn’t want to complicate the CIRCULATION Candice Yopp, Manager. (stores),” Golden said. “(If) you get York City-based women’s clothing PRODUCTION MANAGER Wendy Kobylarz more than that, you become too market. D.O.C deal. retailer Cache Inc. to add about 130 PRODUCTION SUPERVISOR Larry Williams, commercial and you lose your ca- A noncompete agreement that (313) 446-0301 ” stores in three years. SUBSCRIPTIONS (313) 446-0450, chet.” Golden signed with Luxottica pre- Richard Golden, SEE Inc. He also spent 11 years with San (888) 909-9111 vents SEE from taking direct aim TO FIND A DATE A STORY WAS PUBLISHED: SEE, which stands for Selective Francisco-based Gap Inc., where he at Luxottica brands. (313) 446-0367 or e-mail the Crain Information Eyewear Elements, aims to sell was part of the original team that Center at [email protected]. “They’re going for mass Ameri- glasses to fashion-conscious shop- of eyewear fashion, not just among expanded Old Navy into a national CRAIN’S DETROIT BUSINESS IS PUBLISHED BY pers at affordable prices. The com- ca,” Golden said. “We’re going for CRAIN COMMUNICATIONS INC. people who live in major urban chain. CHAIRMAN Keith E. Crain pany’s glasses are made to com- a much different market.” centers,” Axelrad said. “Eyewear Desjardins said he plans to bor- PRESIDENT Rance Crain pare in style and quality with is becoming increasingly under- Selling to a different market SECRETARY Merrilee Crain row from each company’s play- TREASURER Mary Kay Crain high-end designer eyewear, and than Luxottica can be a key sur- stood to be a fashion accessory, book for SEE’s expansion. Executive Vice President/Operations they’re made in the same factories something that someone can own vival tactic for boutique eyewear William A. Morrow “What I’m passionate about is Group Vice President/Technology, in Europe and Japan that produce more than one pair of to represent stores, said Joe Ales, owner of Op- Manufacturing, Circulation getting great people to join the or- designer glasses. various facets of their life.” tik Birmingham in Birmingham. Robert C. Adams ganization and getting great real Vice President/Production & Manufacturing While designer glasses may sell SEE stores cost between $200,000 Optik’s glasses range from $159 Dave Kamis estate to allow us to expand,” Des- for $450 to $700 a pair, SEE features and $250,000 to open. Golden said to $1,200, including exclusive de- Corporate Director/Circulation jardins said. Patrick Sheposh similar styles that range from $200 the company will fund the early signer lines and unused vintage G.D. Crain Jr. Founder (1885-1973) Golden found Desjardins Mrs. G.D. Crain Jr. Chairman (1911-1996) to $300 including lenses, Golden part of its expansion through its frames. through an executive search firm, EDITORIAL & BUSINESS OFFICES: said. own cash and current lines of cred- Ales believes offering niche and said he selected him because 1155 Gratiot Ave., Detroit MI 48207-2732; (313) SEE’s stores generate annual it. Future expansion may be fund- products has helped Optik main- 446-6000 Desjardins is passionate about the Cable address: TWX 248-221-5122 AUTNEW DET sales between $800 and $1,000 a ed through those means, Golden’s tain ground against industry giant Subscriptions $59 one year, $98 two years. Out square foot, with the average SEE personal money or private equity; Luxottica, which has 5,800 stores SEE concept. of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state store being about 1,000 square feet. Golden said several private-equity worldwide and expects 2007 sales “It was important to me that he rate for surface mail. got emotionally involved in it Reprints: For inquiries call the reprints department Selling expensive-looking glass- firms have expressed interest in of about $8.4 billion, and he be- at: (800) 494-9051, Ext. 144 , or at es at lower prices is a formula that SEE. lieves the same differentiation rather than just looking at it as a [email protected] has worked well in the past for “With the cash that we’re sitting job,” Golden said. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is strategy will help SEE as it ex- published weekly except for a double issue the Golden and likely will fill an in- on, we have enough to get this first pands. Golden said that enthusiasm second week in August by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. creasing niche, said Marge Axel- round of stores up for the first year “They’ve done a good job of will be important as he and his Periodicals postage paid at Detroit, MI and rad, senior vice president and edi- or so,” Golden said. team work to build SEE’s reputa- additional mailing offices. POSTMASTER: Send defining their brand, especially in address changes to CRAIN’S DETROIT BUSINESS, torial director of New York-based This is Golden’s second run at comparison to someone like tion around the country. Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Jobson Optical Group, which publish- growing an optical retail chain. Lenscrafters or Pearle Vision,” “We are becoming our own Entire contents copyright 2008 by Crain es retail trade publications 20/20 Golden and his brother, Randal, said Ales, whose store had sales of brand,” Golden said. Communications Inc. All rights reserved. Reproduction or use of editorial content in any Magazine and Vision Monday. sold about 100 D.O.C stores to Ital- $470,000 last year. Sheena Harrison: (313) 446-0325, manner without permission is strictly prohibited. “There is a growing awareness ian optical company Luxottica Golden has hired David Des- [email protected] Ride-Along enclosed in Edition 3 DETROIT BUSINESS MAIN 01-07-08 A 22 CDB 1/4/2008 6:09 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 7, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, DEC. 22-JAN. 4

wabic’s site got 5,582 visits tion projects and conces- based Caraco Pharmaceutical just the week after the seg- 11 charged sion programs,” according Laboratories Ltd. to sell its ment aired. to a news release. first generic over-the- QuatRx gets Those visits resulted in Preliminary results of counter drug, a tablet to nearly 100 new orders from in stock, the inquiry have been treat allergy symptoms. states Pewabic had never turned over to federal au- Ⅲ Dura Automotive Sys- sold to previously and thorities, who are conduct- tems Inc. has won a one- good news on $8,000 worth of sales for spamming ing their own investigation. month extension of loans merchandise including that are financing its bank- Christmas ornaments, TRANSACTIONS ruptcy reorganization, but snow drop vases and frog scheme said it is looking for a deal paperweights. Ⅲ Elder Automotive Group that would provide it with drug trial Ireland said she expects wo Oakland County CEO Irma Elder announced financing until the end of to see additional new busi- men and nine others Dec. 28 the company’s pur- June, The Associated Press obert Zerbe, the presi- the week for meetings with ness from the show as it re- T have been indicted chase of Jaguar of Novi from reported. dent and CEO of Ann potential partners and in- airs across the country and by a federal grand jury in Nate Conyers. Ⅲ The Michigan Depart- R Arbor-based QuatRx vestment bankers. as people come across Pe- Detroit on charges they Ⅲ TRW Integrated Chassis ment of Management and Pharmaceuticals Inc., took QuatRx has raised more wabic in the list of “secret took part in an internation- Systems L.L.C. paid $40 mil- Budget on Jan. 2 said the good news with him when venture capital than any sources” Stewart includes al scheme that allegedly lion for some assets of Del- state ended fiscal 2007 on he flew to San Francisco for company in Michigan histo- on her Web site. drove up prices in Chinese phi Corp.’s brake manufac- Sept. 30 with a $259.1 mil- this week’s big 26th-annual ry, $116.6 million since it penny stocks by using ille- turing operations, lion surplus in the general J.P. Morgan Chase & Co. was founded in 2000, includ- NBC to air auto gal e-mail spamming tech- Automotive News reported. fund and a $94 million sur- health care conference. ing $44 million last May. niques. Ⅲ Kongsberg Automotive plus in the School Aid The drug company an- QuatRx had planned to go show program Alan Ralsky, 62, and Holding ASA, which has a Fund. nounced public in 2006 but withdrew known as “The King of sales office in Farmington Ⅲ Gov. Jennifer Granholm For the fourth year in a positive its filing that July after the Spam,” and his son-in-law, Hills, has closed on its $560 has signed legislation au- row, NBC Sports is planning results market for biotechs cooled Scott Bradley, 46, both of million acquisition of the thorizing a public-private to produce a television spe- Thursday off. Its investment banker West Bloomfield Township, global motion systems busi- task force to examine alter- cial featuring the North of a at the time, New York- sold their stocks after the ness from supplier Teleflex native ways to fund Michi- American International Auto Phase III based Cowen & Co. L.L.C., prices were inflated, taking Inc., Automotive News re- gan’s transportation needs. Show. U.S. Food said the company would huge profits. Buyers who ported. Ⅲ State Rep. David Law, R- The one-hour show is and Drug have a larger IPO if it wait- made purchases through Ⅲ North Pointe Holdings Commerce Township, said Adminis- ed until it got good Phase III scheduled to air on Jan. 20 the Internet were stuck los- Inc. has agreed to be ac- he will run for Oakland tration results. from 3-4 p.m. NBC’s Bill We- ing money, the government quired by Australia-based County prosecutor. ber will host the “Interna- Zerbe clinical said. QBE Holdings Inc., a sub- Ⅲ The Pfizer Foundation trial of its Pewabic’s sales up after tional Auto Show” special, Bradley and Judy Deve- sidiary of QBE Insurance has granted $1 million to Ophena drug for women. along with reporter Marty now, 55, of Lansing, were ar- Group Ltd., for about $146 the Ann Arbor Area Communi- The trial was of 826 women ‘Martha’ mention Snider. This year’s auto raigned late Thursday, ac- million in cash. The deal is ty Foundation to help it re- who used Ophena, an estro- show opens to the press on cording to Stephen Moore, expected to close the first cover from the loss of fund- A large number of people gen-free therapy to treat Jan. 13 and is open to the public information officer half of this year. ing related to the closure of sexual dysfunction and across the country took do- public Jan. 19-27. for the IRS Criminal Inves- local Pfizer Inc. operations. vaginal atrophy in post- mestic diva Martha Stewart’s tigation Division. Ralsky is Ⅲ General Dynamics Land menopausal women. word for it that Detroit- believed to be in Europe, ON THE MOVE Systems said Thursday that based is “a BITS & PIECES Twelve-week, double-blind Moore said. Ⅲ David Coulter to interim it has received a $99 million good thing.” Ⅲ studies at 80 U.S. health Barbara Ann Karmanos executive director, Michigan order from Force Protection Pewabic’s fabrication of Cancer Institute centers showed that President Deloitte & Touche agrees AIDS Fund, Southfield, from Inc. to build 183 bomb-resis- Ophena produced signifi- fireplace surrounds for and CEO Dr. John Ruckde- director of public policy. He tant vehicles for military cant results compared to a Stewart twice schel recently pub- to settlement replaces Stacey Barbas, who personnel overseas, The As- placebo. during the past 10 lished a chapter in is now program officer at sociated Press reported. “This is very good news years introduced the book Inside the Deloitte & Touche USA the Troy-based Kresge Foun- Ⅲ Canada’s Globe & Mail for us. It’s a major mile- the star to the Minds: The Art and L.L.P. agreed Dec. 27 to pay a dation. The nonprofit ex- reported Dec. 20 that Oren $38.25 million settlement in stone for us. This makes all range of pottery Science of Oncology: pects to either hire Coulter Koules, a Los Angeles televi- a class-action lawsuit over our options very attrac- pieces Pewabic Top Doctors on Com- permanently or launch a sion and movie producer, its role as the former exter- tive,” said Zerbe, who told offers. munication Expecta- search for a permanent ex- met with Palace Sports and nal auditor of Delphi Corp. Crain’s last year that the Traffic and tions to Patients, De- ecutive director by the end Entertainment executives to The accounting firm, company hoped to either go purchases on the veloping a Treatment of the month. work out a new negotiating which has a regional head- public or be sold by the end historic organiza- Plan, and Staying on Ⅲ David Barfield to the agreement to purchase the quarters in Detroit, is one of 2008, and that the results tion’s Web site in- Top of Research. Sev- newly created position of Tampa Bay Lightning of the Ruckdeschel of several defendants in a of the Phase III study then creased after it eral other cancer ex- president, Bartech Workforce National Hockey League. The set of lawsuits brought in underway would be crucial. was featured on Stewart’s perts contributed to the Management; and to senior deal, which would include late 2005 and early 2006 by He will make a formal Dec. 5 syndicated TV show, book as well. vice president, The Bartech new partners movie pro- investment funds and indi- half-hour presentation to which airs locally on WXYZ- In his chapter, “At the Group Inc., from vice presi- ducer Mark Burg and Cali- viduals who claim they in- analysts, investment Channel 7. Core of Oncology,” Ruckde- dent of operations. Mary fornia financier Russell Be- vested in Delphi based on bankers and would-be ac- Monthly visits to Pe- schel discusses the impor- Beth Vansen will become linsky, could be worth $206 misinformation about com- quirers on Tuesday, and wabic’s Web site average tance of communication be- vice president of operations million. pany earnings. said he would remain in about 5,000, said Executive tween physicians and for BWM; she had been di- San Francisco the rest of Director Terese Ireland. Pe- patients. rector of operations. OBITUARIES Airport authority Ⅲ Gregory Grabowski to president and CEO of Ⅲ John “Joe” Collins, ex- investigates Metro Leader Dogs for the Blind president of Wayne National contractor program from vice president for de- Life Insurance Co. in Detroit New year, new content, new reporter, new blog velopment for the National and Michigan’s youngest- The Wayne County Airport Hospice Foundation. He re- ever Democratic Party The new year is bringing new content staff to chase stories that only Authority, which governs op- places the retiring William chairman, died of an appar- to our Web site. Crain’s can bring you. erations at Detroit Metropoli- Hansen, who will serve as ent heart attack Jan. 1. He If you’ve stopped by That said, Crain’s reporters will still tan Airport, on Dec 28 said it president emeritus through was 72. crainsdetroit.com in the past few bring you the latest business news in is investigating potential the end of this year. Ⅲ Leland Grubb Jr., CFO of days, you may have noticed Southeast Michigan. The addition of “irregularities” in a pro- Southfield-based Employee unfamiliar bylines. syndicated content to our Web site is gram designed to ensure Health Insurance Manage- not the result of a reduction in staff or OTHER NEWS That’s because we’re now running nondiscrimination in feder- ment Inc., died of a heart at- an indication of less Crain’s reporting stories from the Associated Press to al money awarded for Ⅲ Federal-Mogul Corp. ex- tack Dec. 25. He was 62. on the Web. In fact, this week we are supplement our online offerings at transportation construc- ited bankruptcy Dec. 27. Ⅲ Clyde Minor, retired adding a multimedia reporter to our deputy superintendent of crainsdetroit.com. staff who will focus primarily on tion projects. Ⅲ BorgWarner Inc. will Highland Park Public Schools, Just as we work with PR Newswire, producing original content for the site. The authority has tear down its Muncie, Ind., launched what it calls a plant after production ceas- died Dec. 31. He was 73. BusinessWire and our Crain WEB WORLD We also debuted a blog by Publisher Ⅲ Communications Inc. sister Kevin Hill Mary Kramer on Friday. “wide-ranging investiga- es there by April 2009, The Thomas Page, retired publications for news content, we’ll We’re always interested in learning tion of prime contractors Associated Press reported. Ford Motor Co. executive and post stories from the AP to make our Web site ways to improve readers’ experiences on the and Disadvantaged Busi- Ⅲ The U.S. Food and Drug former board member of a greater resource for you. It will expand the Web. If something is on your mind, feel free to ness Enterprise contractors Administration has granted Oakwood Hospital, died Dec. scope of our online coverage and free up our drop me a line at [email protected]. in the authority’s construc- final approval for Detroit- 29. He was 87. DBpageAD.qxd 12/26/2007 12:11 PM Page 1

Wayne State University School of Business Administration Developing Detroit’s future business leaders through education, leadership and research

James Martin, PhD Professor of Management William Volz, JD Studies the use of part-time Professor of Accountancy Richard F. Beltramini, PhD employees, labor contract Teaches and writes on business Professor of Marketing and Anthony Billings, PhD ratification and the effects of law and ethics; won the 2007 Academic Associate Dean Professor of Accountancy different work schedules; his President’s Award for Excellence Developed a scale to measure Focuses on corporate research research has helped major in Teaching, and his recent paper advertising believability that has and development spending, as organizations set work schedules on the Sarbanes-Oxley Act won been widely cited and used by the well as international accounting and get their labor contracts the 2006 Cohn Prize in Legal and Federal Trade Commission and the and taxation. ratified. Public Policy Scholarship. Food and Drug Administration.

Attila Yaprak, PhD Professor of Marketing Conducts research into Jeff Stoltman, PhD Margaret Smoller, PhD international business, global Associate Professor of Associate Professor of marketing and consumer Marketing Finance behavior issues, especially in Frequently quoted in the media Studies derivative securities and emerging markets; won a 2007 for his knowledge of shopping equity offerings; is an award- Outstanding Marketing Teacher and retail trends and his work winning teacher who has been Award from the Academy of in consumer product safety and recognized for her involvement Marketing Science. product recalls. in student organizations.

MBA students at ’s School of Business Administration know what it’s like in the real world because they live and work in it every day. They also know that to remain competitive, they must continue to develop new skills for a global marketplace. That’s why they have joined us. Working with our expert faculty, like those introduced here, Wayne State MBA students find a laboratory to explore fresh research, grow their leadership potential, expand their network of colleagues and develop solutions for the problems challenging real-world business. Are you ready to take your career to the next level? Visit us at busadm.wayne.edu or call (800) 910-EARN.

David Williams, PhD Dean

busadm.wayne.edu DBpageAD.qxd 1/2/2008 11:51 AM Page 1

PAID ADVERTISEMENT Why should you care about Market Reform?

If you have a medical condition or can imagine yourself becoming ill For the first time ever, the Michigan Insurance Commissioner would have sometime during your lifetime, you should hope that insurance reforms authority to order refunds when an insurer’s rates are deemed excessive. now being considered in Lansing become the law of the state. Most important, the legislation guarantees access to coverage The number of Michigan residents responsible for insuring themselves by ensuring that Blue Cross Blue Shield of Michigan continues its is expected to grow so quickly over the next five years that individuals nonprofit mission of providing health coverage to everyone. It’s a could make up 15 to 25 percent of the state’s insured market. You might role we’ve played since 1939. We’re proud of it and are committed be one of these people — out on your own, without an employer’s HR to serving the citizens of Michigan. department working on your behalf, asking health insurers or HMOs to cover you and your family. Our for-profit competitors say these bills are a power grab by Blue Cross. They said the same thing four years ago when, consistent with our Unless legislative reforms are passed that put basic protections in place nonprofit mission, we championed reform of the small-employer market. for individual consumers, here’s what almost certainly will happen to you. This year, the Michigan Insurance Commissioner independently verified If you’re healthy, you’ll find coverage easily. You’ll pay your premiums and that in the small-employer market: rest easy. But when you get sick, your insurer will raise your premiums as much as it wants. Michigan’s insurance law puts no limits on how much s2ATEINCREASESHAVESTABILIZEDALTHOUGHTHEYREMAINASIGNIlCANT health insurers can raise an individual’s rates if the person’s medical challenge). condition worsens during the coverage period. s-OREINSURERSAREOFFERINGCOVERAGETHANFOURYEARSAGO If you become unsatisfied with your new premium and choose to go elsewhere, your pre-existing condition will almost certainly limit your s"LUE#ROSSSHAREOFTHEMARKETISLOWER TOTHEBENElTOFOUR access to health insurance. The same insurers that wanted you when competitors. you were healthy will turn you away now that you are sick. Taking the healthy and rejecting the sick is allowed in Michigan. And insurers Reform of the small-employer market was the right thing to do — even are not held responsible for turning people away. though it cost us business by making our competition stronger. Reform of the individual market is the right thing to do, too. You could find coverage at Blue Cross Blue Shield of Michigan — the state’s insurer of last resort accepts everyone for coverage regardless of Our for-profit competitors don’t want anything to change because medical history. But Blue Cross is meant to serve as a safety net — not as Michigan’s lack of a consumer-friendly regulatory system is a gold mine a convenient excuse for insurance companies to reject people who cost for them. They operate here like almost nowhere else in the country more to cover. — with few restrictions on their practices. They take advantage of Blue Cross’ role as last-resort insurer to abandon unhealthy people, without The unfair practices of for-profit insurance companies and lack of rules to accepting any responsibility. hold them responsible do not bode well for the hundreds of thousands of Michigan residents who will need individual health coverage over the Michigan needs Individual Market Reform. We should not be the coming decade. state that tells its residents to be responsible and buy their own health insurance, but refuses to hold the insurers responsible for A solution has been proposed in Lansing. It’s a package of four bills covering people. known as Individual Market Reform. The bills are now in a state Senate committee, after passing by overwhelming margins in the House of Representatives. This package is supported by 81 percent of Michigan adult residents, according to a recent statewide survey.

These reforms do what 34 other states have already accomplished: Joan Budden They put needed consumer protections into our state’s law. They put Vice President, Individual Business you first. Blue Cross Blue Shield of Michigan

These bills:

s0REVENTALL-ICHIGANINSURERSFROMSETTINGRATESTOOHIGH WHEN previously healthy people who become ill try to renew their health insurance.

s0UTACAPONINSURERSPROlTSBYREQUIRINGTHEMTOPAYOUTAMINIMUM percentage of their premiums to doctors, hospitals and other providers of health care.

s"RINGTHEFAIRPRICINGSYSTEMTHAT-ICHIGANSMALLEMPLOYERSHAVEAND put it to work for individuals. Our small-employer market provides for fair and competitive rates across all insurers. bcbsm.com