DETROIT BUSINESS MAIN 01-28-08 A 1 CDB 1/25/2008 6:35 PM Page 1

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www.crainsdetroit.com Vol. 24, No. 4 JANUARY 28 – FEBRUARY 3, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN New ID rules Biz leaders want straight ‘Private’ messages talk in State of the State may cause In the Capitol and in De- troit, Gov. Jennifer Granholm will this week send a mes- delays at sage of job creation and of strengthening Michigan’s economy in her State of the often open secrets State address. The gover- the border fessionals. nor’s office declined to re- lease details, but business “Though officially deleted by BY BILL SHEA Do text officials have specific ideas official policy, my suspicion is CRAIN’S DETROIT BUSINESS on what they’d like to hear. that they archive them longer “First, I think the state as Joyce Farrer’s commute from a messages than public communication dic- a whole, and certainly our Windsor suburb to her nursing job at tates, and legislation on e-discov- members, want a realistic Detroit’s Henry Ford Health System ery is making it easier and easi- assessment of where we are takes about 45 minutes — including disappear? er for these types of as a state,” said Tricia Kinley, 10 minutes to get over the border — communications to be used in director of tax policy and but that’s expected to take a little civil and criminal proceedings,” Kilpatrick Beatty economic development at longer starting Thursday. Only sort of said Steve Barone, CEO of Cre- the Michigan Chamber of Com- Farrer is one of the 431 nurses who ative Breakthroughs in Troy, an IT merce. “It doesn’t have to be commute daily from Ontario to work BY TOM HENDERSON BUSINESS RESPONDS staffing, consulting and man- aged-services firm and the No. 1 gloomy, on one hand, and at the hospital system. CRAIN’S DETROIT BUSINESS TO SCANDAL broadcast that across the She and thousands of other Canadi- provider of Symantec services in Don’t send any text messages country. On the other hand, ans who staff Southeast Michigan The verdict: Detroit’s comeback the Midwest. or e-mails you don’t want to see it shouldn’t be glossing over hospitals and oth- can survive the troubles of Mayor “Don’t rely on word the mes- in the newspaper was a lesson the facts.” er businesses face Kwame Kilpatrick and Chief of sages are gone,” said Malven. Detroit Mayor Kwame Kil- Kinley and Rob Fowler, BRING THESE new U.S. govern- Staff Christine Beatty. For more, “Providers want people to keep patrick learned last week, and see Page 41 and on the Web at president and CEO of the A list of which ment identifica- using it (text messaging) and not one repeated by area attorneys www.crainsdetroit.com/kilpatrick. Small Business Association of documents can tion requirements be worried. They may delete it and business consultants. Michigan, said they are also get you across that begin Jan. 31. on the server, but backups may the border. “I advise everyone and prac- looking for signs that the Border officials crashing to the ground. Compa- be out there.” Page 40. tice it absolutely. I don’t send state is focused on control- warn that traffic nies get ruined.” “Service providers back up anything I don’t want public,” ling state spending. entering Michi- Service providers say they constantly, as a matter of course. said Mark Malven, leader of the Fowler said a primary gan at both the Ambassador Bridge erase text messages from their Just assume it will be stored technology transaction practice item for SBAM is for the and Detroit-Windsor Tunnel could be somewhere and accessible either in the Bloomfield Hills office of servers — AT&T deletes messages governor to take a lead on delayed during morning and after- intentionally or by accident,” Dykema Gossett P.L.L.C. “I don’t after 72 hours, according to entrepreneurship, such as noon rush hours for at least a few said Jose Nazario, a senior secu- put anything sensitive into an e- spokesperson Howard Riefs, and expanding entrepreneurial weeks as people learn the new rules. rity researcher in the Ann Arbor mail or a text message that I others do so in times ranging up education. It’s unclear how long of a daily de- office of Massachusetts-based Ar- wouldn’t want to see in the news- to two weeks — but you should- Granholm is expected to lay is expected. paper. Executives have come n’t rely on that, say industry pro- See Messages, Page 41 repeat the message and “We probably will see delays going themes of her Tuesday ad- into the U.S. at the bridge and tunnel dress on Thursday, at an and at Sarnia (to Port Huron) for two event organized by the De- to three weeks,” said Neal Belitsky, troit Regional Chamber. CEO and general manager of Detroit The breakfast address, at Windsor Tunnel L.L.C., the entity that MGM Grand Detroit Casino operates the mile-long tunnel for its and hotel, is an opportunity co-owners, the cities of Detroit and for the governor to “look the Windsor. A sense of place business community in the With an estimated 40 percent of the eye” and present her mes- 16,500 vehicles crossing daily into De- And he stayed to be part of the city’s revival while Sarah Hub- sage directly, said troit being commuters, delays stand connecting with a network of entrepreneurs who bard SBAM: Sense of community , the chamber’s vice to affect an array of businesses. also have made Detroit their home. president of government re- Henry Ford, for example, employs “This is my hometown, this is where I grew up,” lations. She said the cham- 602 Canadians, including the 431 important for entrepreneurs said Black, whose company had sales of about ber hopes the governor will nurses. The automotive industry em- $85,000 last year. also take questions from ploys a significant number of Ontario BY SHEENA HARRISON Generating a sense of community similar to those attending the event, residents, too. CRAIN’S DETROIT BUSINESS what Black describes is essential to creating an open to chamber members U.S. and Canadian citizens will no economy that supports entrepreneurs, says the Of all the places that Douglas Black could locate and nonmembers. longer be able to just orally declare Small Business Association of Michigan. Liz Boyd his environmental consulting firm, Enerficiency , Granholm’s their citizenships under the Western Now, the Lansing-based trade group is teaming Inc., he chooses to be in Detroit. press secretary, said the Hemisphere Travel Initiative, ap- up with the Michigan Municipal League and the His 10-year-old firm was founded in East Lans- governor was pleased at the proved by Congress in 2004 to im- Michigan State Housing Development Authority to find ing, and Black knows he could probably tap more chamber’s invitation and prove border security in the wake of out how to bolster that sense of community and heavily into the growing green energy market by “will be talking about jobs the Sept. 11 terrorist attacks. make the state more entrepreneur-friendly. moving to California. and the economy.” Instead, they must provide identifi- The two groups have contributed $5,000 each to Amy Lane But Black moved Enerficiency to Detroit five — cation from an approved list, such as SBAM, which will allow SBAM to survey small years ago to shorten his commute, since most of See This Just In, Page 2 See Border, Page 40 his business was being conducted in metro Detroit. See Survey, Page 37

Focus Cobo plans move BIG DEALS 2007 to Legislature, NEWSPAPER 119 deals, $40.1 billion, see Page 11. Page 3 DETROIT BUSINESS MAIN 01-28-08 A 2 CDB 1/25/2008 6:49 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 28, 2008

Motor City was scheduled to Skillman Foundation names Sphinx announces consortium According to an online data- THIS JUST IN open Iridescence to the public base of U.S. metropolitan areas, Saturday . new CFO, treasurer for minority composers the area dubbed as the “Detroit- ■ From Page 1 Hightower has served as execu- The Skillman Foundation in De- The Sphinx Organization in De- Warren-Livonia” corridor has a tive chef of Bali by the Sea in troit has named Danielle Olekszyk troit planned to announce a new fifth-place ranking. Community college board Waikiki, Hawaii. He is a graduate CFO and treasurer. national consortium to advance Only New York, Los Angeles, of Schoolcraft College in Livonia. She replaces Andrea Cole, who composition of major orchestral Houston and Seattle tallied high- approves chancellor’s contract MotorCity also said Patricia left the foundation at the end of works by minority composers on er export totals among the more Chancellor Timothy Meyer offi- Nash, 32, the American Culinary last year after 20 years to become Sunday. Sphinx is teaming with than 350 areas in the database. The “Seattle-Tacoma-Bellevue” cially began his duties last Federation 2007 Pastry Chef of the executive director of the De- the Detroit Symphony Orchestra and area was ranked No. 5 in 2005 but Wednesday at Oakland Community the Year, has joined the casino as troit-based Ethel & James Flinn 12 other major symphonies and surpassed Detroit when it grew College after the school’s Board of executive pastry chef. Foundation. orchestras to form the Sphinx from $30.4 billion to $46.3 billion Trustees approved an employ- Nash previously served as ex- Olekszyk, who joined Skillman CommissioningConsortium. in sales for 2006. ment contract. ecutive pastry chef of Westchester in 2004 as an accountant, was pro- Each member of the group will Metropolitan Detroit account- Country Club in Rye, N.Y. moted to controller in 2005. Be- contribute $5,000 each year to Meyer, 55, will receive a salary ed for 74 percent of Michigan’s to- — Brent Snavely fore joining Skillman, she was a commission an orchestral work of $230,000 per year under the tal merchandise exports in 2006, terms of a contract that expires in consultant at AlixPartners L.L.C. by a minority composer and then perform that work during one of and transportation equipment June 2012. and an auditor at Pricewaterhouse- CMS raises dividend its ‘concerts. alone accounted for $28.2 billion Former Chancellor Mary Coopers L.L.P. Sphinx will serve as the fidu- worth, or 65 percent, of all De- Spanger left in early 2007. Meyer CMS Energy Corp. on Friday an- — Sherri Begin ciary and administrator of the troit-exported goods. is a past president of Sault Ste. nounced an 80 percent increase program, said Sphinx Founder The Ann Arbor metropolitan Marie College in Sault Ste. Marie, in the quarterly dividend on its Investment firm adds director and President Aaron Dworkin. area made the list separately, Ontario, and previously spent 13 common stock. ranking at No. 110 with $1.17 bil- The Grosse Pointe investment years as a public sector research The board of directors ap- — Sherri Begin lion worth of exports in 2006. banking firm of Donnelly Penman scientist. proved a dividend of 9 cents per Canada was the leading desti- & Partners has announced that — Chad Halcom nation country for local exports, share, compared with the previ- John Lewis , a former vice chair- Detroit area exports grow but Canada and Mexico together ous 5-cent level. The dividend is man at Comerica Inc., has joined accounted for $32.8 billion in Casino appoints new chefs payable Feb. 29 to shareholders of the firm as a managing director. The U.S. Department of Com- record on Feb. 8. merce said last week that Detroit goods. Central America and the MotorCity Casino named two new Lewis retired on June 2006 af- area exports for 2006 were $43.3 Dominican Republic were a desti- chefs for its hotel fine-dining and In a news release, CMS Presi- ter a 36-year career with the billion, up from $40.4 billion in nation for $96 million in goods. pastry department on Friday. dent and CEO David Joos said the bank. 2005. — Chad Halcom Adam Hightower, 30, has been board’s decision to raise the divi- He has been serving as an ad- named fine dining chef and will dend “reflects the success of our viser to Donnelly Penman’s $28 oversee Iridescence in its new loca- business strategy and the im- million Financial Services Fund, tion on the 17th story of the Mo- proved financial strength of the which invests in new community CORRECTION torCity Casino Hotel in Detroit. company.” banks around the country. The Ⅲ A story on Page 1 of the Jan. 21 issue incorrectly named Anderson MotorCity said Hightower has The increase comes one year firm is expected to announce a Consulting Group as the author of a study assessing Blue Cross Blue reinvented the Iridescence menu after CMS reinstated its quarter- second fund soon, with Lewis as- Shield of Michigan’s impact on Michigan. Anderson Economic Group “using local and organic ingredi- ly common-stock dividend. sisting in raising capital. L.L.C. should have been named as the author of the study. ents to craft area-inspired dishes.” — Amy Lane — Tom Henderson DETROIT BUSINESS MAIN 01-28-08 A 3 CDB 1/25/2008 6:40 PM Page 1

January 28, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Lansing takes up Cobo plan INDEX has neglected. Executive decision: Questions remain, they say, over the way cost Judge’s ruling on Republicans not fully behind proposal compensation for top overruns on the center’s operations will be han- Delphi executives seen dled, as well as construction cost overruns, and as a victory for the BY AMY LANE AND DAN DUGGAN Wayne County than it has been in the past, but it whether the regional authority or the city will pay unions. Page 32. CRAIN’S DETROIT BUSINESS still has outstanding issues with the latest plan, for them. said Deputy County Executive Patterson’s office objects to a $25 million en- LANSING — Legislation to improve and expand Robert Daddow. closed footbridge connecting Cobo with the Re- Cobo Center may have the support of Democratic “The first issue is that we naissance Center and the Sheraton Detroit River- House Speaker Andy Dillon and Gov. Jennifer haven’t even seen it,” he said. side Hotel. Ficano has said the enclosure will Granholm, but it’s going to take attention to con- In a five-page document, Pat- make Cobo more appealing by giving a walkable cerns raised by Republican Oakland County Exec- terson’s team has listed its com- alternative for hotels. Patterson’s office said the utive L. Brooks Patterson and others to get the plaints with the current plans hotels are not funding the project, so they should bills through the Legislature. as they understand them. not benefit. Republican leaders in the Senate and House say They disagree with a $20 mil- The letter calls for more involvement by Ma- they are looking at issues raised by Patterson and lion payment to the city of De- comb County and even Washtenaw County, as other leaders as bills that support the expansion Daddow troit for transfer of title for well as a commitment by the Detroit 3 to continue are readied for introduction. Cobo, given that the regional Oakland County is closer to a compromise with A little help: MIR growing authority will be paying for maintenance the city See Cobo, Page 40 with the help of several former Pfizer employees. Page 33. A new 990: New tax forms for nonprofits bring a mixed reaction. Page 35.

These organizations appear in this week’s Crain’s Detroit Business: Firm stays in the ‘family’ ABN Amro Holding NV ...... 27 Automotive Components Holdings L.L.C...... 12 Bank of America Corp...... 27 Barclays plc ...... 27 Butzel Long ...... 11 After owner’s death, CMS Energy Corp...... 13 Cerberus Capital ...... 27 Chrysler L.L.C...... 27 Continental AG ...... 27 employees buy company Continental Automotive Systems North America ...... 27 Council of Michigan Foundations . . 35 DTE Energy Co...... 13 Y HAD ALCOM B C H Delphi Corp...... 32 CRAIN’S DETROIT BUSINESS Detroit International Bridge Co. . . . 40 Detroit Metro Convention Speculation was rampant, potential buyers were show- and Visitors Bureau ...... 40 ing interest and employees of Farmington Hills-based Ster- Detroit Regional Chamber ...... 3 ling Office Systems Inc. knew just one way to be sure of their Detroit Renaissance ...... 36 Detroit Windsor Tunnel L.L.C...... 1 futures. Domino’s Pizza Inc...... 27 So they bought the company. Enerficiency Inc...... 3 The distributor of photocopiers and other office ma- Farbman Group ...... 25 ForeSee Results Inc...... 18 chines faced an uncertain future after the death of owner Henry Ford Health System ...... 1 Anthony Bellotto last fall. Johnson Controls Inc...... 12 But then, three of his nine employees secured a financing Kelly Services Inc...... 4 agreement with the Bellotto family estate to acquire his Kongsberg Automotive Holding . . . 11 LaSalle Bank Midwest N.A...... 27 company. Lear Corp...... 27 “We still haven’t done anything yet with Tony’s office. Michigan Assoc. of Recreational It’s been sitting (unused) since the family came in for a few Vehicles and Campgrounds . . . . . 40 of his things,” said Jeff Polites, formerly a sales manager Michigan Chamber of Commerce . . . 3 Michigan Department of Treasury . . 40 and now co-owner and vice president of sales. “No one has Michigan Manufacturers Association 3 had the heart to move in there or use it for something else.” Michigan Nonprofit Association . . . 35 Bellotto, 66, of Brighton, died in October. The company he Miller, Canfield, Paddock and Stone P.L.C...... 11 launched in 1999 made about $1.1 million in revenue last NATHAN SKID/CRAIN’S DETROIT BUSINESS (From left) Marcie Rivera, John Wetherbee and Jeff Polites acquired Farmington Hills-based Sterling Molecular Imaging Research Inc. . . 33 PricewaterhouseCoopers L.L.P. . . . 11 See Sterling, Page 39 Office Systems Inc. on Jan. 2. QuatRx Pharmaceuticals Co...... 18 St. Mary Mercy Hospital ...... 25 St. Joseph Mercy Health System . . . 25 Seneca Partners Inc...... 18 Siemens AG ...... 27 Small Business Association of Michigan ...... 1 Sterling Office Systems Inc...... 3 Stevenson Keppleman Associates . 32 TRW Automotive Holdings Corp. . . . 27 Renaissance takes economic ideas to Lansing Trinity Health ...... 25 United Auto Workers ...... 32 WL Ross & Co. L.L.C...... 12 BY ROBERT ANKENY Inc., says his organization decided to become Sarah Hubbard. AND BRENT SNAVELY “more activist and less like a club” because the “They are certainly wading into new territory CRAIN’S DETROIT BUSINESS state needs help to become competitive to gain for them, territory we are quite familiar with, so businesses and jobs. we’ll help them navigate these waters because we BANKRUPTCIES ...... 6 Frustrated by Michigan’s current fiscal crisis Renaissance board members need to engage the entire business community,” and the lack of leadership by politicians in Lans- represent some 350,000 jobs, she said. BUSINESS DIARY ...... 29 ing, the 52 business and university CEOs on the more than 130,000 students and An example of why the business community CALENDAR ...... 28 board of Detroit Renaissance Inc. have decided more than $1 trillion in rev- can use broader support for legislative change CAPITOL BRIEFINGS ...... 6 enough is enough. enue. came early last week, Hubbard said, at an appro- CLASSIFIED ADS...... 34 The economic development group last week Those business leaders have priations hearing presentation in Lansing on rev- DIVIDENDS...... 6 launched an ambitious written platform it calls decided to take an active role on enues for the 2009 budget. “Detroit Renaissance Perspective: Principles for key economic issues affecting “They are saying everything is fine, but busi- EARNINGS ...... 6 Addressing Michigan’s Economic Competitive- Michigan’s fiscal stability, said ness took a $750 million tax increase last year, so KEITH CRAIN ...... 8 ness.” Doug Rothwell, president of De- we need to keep talking about long-term reforms LETTERS ...... 8 The thrust of the written document is to im- Brandon troit Renaissance. to find savings in the budget that can make Michi- OPINION ...... 8 prove the health of Michigan’s ailing economy And those already advocating for business in gan more attractive for business by lowering long- OTHER VOICES ...... 9 and to use it to pressure lawmakers into reform- Lansing welcome the newcomers. term costs.” ing government’s approach to commerce. Getting Detroit Renaissance involved in Lans- She said many of the reforms proposed by De- PEOPLE ...... 30 Renaissance chairman David Brandon, chair- ing is “important for the entire business commu- troit Renaissance have already been identified as RUMBLINGS...... 42 man and CEO of Ann Arbor-based Domino’s Pizza nity,” said Detroit Regional Chamber chief lobbyist See Renaissance, Page 38 WEEK IN REVIEW ...... 42 DETROIT BUSINESS MAIN 01-28-08 A 4 CDB 1/25/2008 4:58 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 28, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Kelly Services stock price falls after report of lower earnings

BY CHAD HALCOM total revenue worldwide. eventually help bring the lower CRAIN’S DETROIT BUSINESS But the Americas commercial end back or will the unemploy- staffing segment, which accounts ment in less education drag the Shares of Troy-based Kelly Ser- for 47 percent of total revenues, other half down,” he said. vices Inc. climbed through much of saw a 14.5 percent decline in year- “There’s a possible tug-of-war go- the week but then dived again, af- ly income to $88 million, compared ing on there.” ter an earnings report that showed with $103 million for 2006. And the winner of that contest, the company finished 2007 with a Offsetting much of that drop was Sommer added, may ultimately de- 3.9 percent drop in yearly income. a 1.8 percent increase to $59.2 mil- cide whether the economy is in a The nation’s third-largest lion in income from the profes- midmarket hiring lull or on its staffing company reported net in- sional, technical and staffing alter- way to recession. come of $18.6 million, or 52 cents natives segment in the Americas, “Netting it all out, we do recog- per share, on revenue of $1.48 bil- and an increase from $1.2 million nize the real possibility of a reces- lion for the quarter ending Dec. 30. to $12.8 million in total income sion,” Camden said Thursday. That was down from $24.4 million, from overseas operations. “But we continue to believe that or 67 cents per share, on revenue of The PTSA segment of mostly col- demand for temporary employees $1.42 billion for the year-ago quar- lege-educated workers saw 323.7 ter. here in the U.S. will gradually ac- percent growth overseas to $2.7 celerate in late 2008.” For the year as a whole, Kelly million, and even 15 percent posted net income of $61 million, or It was also a year of consider- growth in Kelly’s troubled U.K. able merger and acquisition activi- $1.68 per share, on revenue of $5.67 and Ireland segments. ty, restructuring costs and contin- billion, compared with $63.5 mil- “We entered 2007 expecting a uing market troubles in North lion, or $1.75 per share, on yearly year of strong growth in the U.S. FORFOR SALESALE oror LEASELEASE America and the U.K. for Kelly. revenue of $5.55 billion for 2006. and at least a decent year interna- The company closed 58 branches Still, the company managed to tionally,” Camden said. “By the in the Americas as part of its re- beat Wall Street expectations of end of the first quarter, it was quarterly revenue of $1.45 billion clear that the year was going to structuring efforts and opened sev- and 49 cents a share in income. play out far differently.” eral dozen new offices in its Amer- Kelly stock climbed more than Tobey Sommer, a vice president icas PTSA segment, at a net cost of $1.50 after the news and ap- of equity research at Nashville, $3 million. proached $19 by late Thursday, but Tenn.-based Suntrust Robinson Kelly also spent $6 million on a slipped to $15.93 by Friday’s close Humphrey, said the Kelly data and restructuring in the U.K. market, on a down day of trading. employment trends may reflect a which accounts for 8 percent of to- It was unclear how much of the tension between employment tal company sales. Kelly closed 22 climb had come from its earnings among the college-educated and U.K. offices and consolidated three instead of overall market recovery those with high school diplomas or headquarters locations during the when the Feder- 5755 New King Court, Troy, Michigan less education who would fall year. al Reserve an- more into its commercial staffing The company also sold one of its nounced a 0.75 • 15 Year Lease in Place for 35,226 SqFt segment. noncore companies to Res-Care Inc. For More Information, Please Call: percent interest with Credit “The upper end of the labor mar- for $12.5 million in early 2007 and rate cut earlier • 20,889 SqFt Available on the 2nd Floor ket, according to educational at- completed acquisitions of four 248.324.2000 the same week. • Outstanding User Purchase Opportunity tainment, has so far been pretty re- staffing companies overseas and Reviewing the • 8.19 Acre Site silient against any softness in the one in the U.S. during 2007. year-end compa- • Expandable for up to an Additional lower end. And the question be- Chad Halcom: (313) 446-6796, ny data and na- 60,000 SqFt comes whether the upper end will [email protected] tional employ- www.friedmanrealestate.com Camden ment trends, Kelly President and CEO Carl Camden conceded that “in many ways we do seem to STREET TALK be teetering on the edge of a gen- uine recession.” THIS WEEK’S STOCK TOTALS: 38 GAINERS, 20 LOSERS, 11 UNCHANGED But as a whole, he said, the com- pany still sees its performance as 01/25 01/18 PERCENT CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE reflecting a mixed economy with a midcycle lull or slowdown in 1. Pulte Homes Inc. $13.10 $9.70 35.05 hires. 2. Flagstar Bancorp Inc. 7.56 5.73 31.94 “The U.S. market has certainly 3. American Axle & Manufacturing 20.45 17.25 18.55 been perplexing and frustrating,” 4. Champion Enterprises Inc. 9.04 7.67 17.86 he said. “The U.S. temporary em- 5. Compuware Corp. 7.60 6.64 14.46 ployment penetration rate 6. Ford Motor Co. 6.58 5.76 14.24 dropped for much of the year even 7. Masco Corp. 21.40 18.76 14.07 as (U.S. payroll growth climbed). 8. ArvinMeritor Inc. 12.11 10.68 13.39 But then, just at the same time as 9. General Motors Corp. 25.79 22.84 12.92 talk of a recession began to in- 10. Credit Acceptance Corp. 15.44 13.73 12.45 crease, temporary hiring actually CDB’S LOW PERFORMERS 01/25 01/18 PERCENT began a slight upward tick in the CLOSE CLOSE CHANGE last couple of months of the year.” 1. Clarkston Financial Corp. $7.60 $8.55 -11.11 Data from the U.S. Bureau of La- 2. Perceptron Inc. 8.78 9.67 -9.20 bor Statistics indicates the nation’s 3. Energy Conversion Devices Inc. 22.70 24.61 -7.76 temporary employment declined 4. Saga Communications Inc. 5.80 6.27 -7.50 for eight consecutive months to a 5. Rockwell Medical Technologies 6.21 6.58 -5.62 yearly low of 2,561,000 workers in 6. CMS Energy Corp. 15.22 16.08 -5.35 September. 7. Caraco Pharmaceutical 16.15 16.95 -4.72 Then it slowly climbed again to 8. DTE Energy Co. 41.47 43.10 -3.78 an estimated 2,596,000 by Decem- 9. First Mercury Financial Corp. 19.57 20.27 -3.45 ber, finishing about 1.7 percent be- 10. Kelly Services Inc. 15.94 16.39 -2.75 low the year-ago total. Kelly, the first staffing company Source: Bloomberg News. From a list of publicly owned companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading to report year-end earnings this at less than $5 are not included. month, saw a 2.2 percent climb in DBpageAD.qxd 12/26/2007 1:41 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS January 28, 2008 Multiple incentives pushed to boost state filmmaking LANSING — Lawmak- for training and hiring rector for Senate Commerce & to a long-term strategy and not just sider states for potential sites. ers are gearing up for ac- Michigan workers, and Tourism Committee chair Jason a horse race,” Meisner said. “It’s become, literally, an arms tion on measures to en- Capitol for encouraging finan- Allen, R-Traverse City, who held a He said he hopes to have joint race. It’s all about the money, peri- tice filmmakers to Briefings cial participation by “an- hearing on filmmaking incentives hearings on legislation with the od,” she said. Michigan and position gel” investors, individu- last week. “If we decide this is the Senate Commerce Committee and The issue is a priority for the state as the best place als who traditionally direction to go in, we want to make would like bills to pass through the Granholm, who sees potential for jobs, said her press secretary, Liz in the country to shoot provide seed money to sure that Michigan is the best.” Legislature and reach Gov. Jen- get ventures started. Boyd. films. House Commerce Committee nifer Granholm in February or A tax credit as high as Lawmakers may also Chair Andy Meisner, D-Ferndale, March at the latest. 40 percent, for produc- look at ways to beef up who held a hearing in November, Agostinelli confirmed that joint Comings & goings the Michigan Film Office, said a 40 percent tax rebate, the House-Senate hearings have been tion costs in Michigan, is ■ Dan Smith, director of govern- now staffed by director highest in the country, would be discussed. Bills are being drafted under consideration and ment relations at the Detroit Re- appears to have biparti- Amy Lane Janet Lockwood and one an “attention-getter.” But it’s also and are expected to be introduced gional Chamber, has been named san support. But other employee. important to have companion mea- in the next few weeks. From there, Oakland University’s state relations ideas that have been explored as “We’re trying to look at this and sures that encourage investment “our hope is to move as quickly as director, a new position. part of a comprehensive package say, ‘if we’re going to jump into the and build Michigan’s infrastruc- we can on it,” Agostinelli said. ■ Janet Snyder, former executive include incentives for investment pool, let’s jump in with both feet,’ ” ture, he said. Lockwood said incentives hold director of Ann Arbor child advo- in infrastructure such as studios, said Joe Agostinelli, legislative di- “That’s something that speaks top importance as filmmakers con- cacy organization Hear My Voice, has become executive director of the Michigan Federation for Children and Families. She replaces Elizabeth Carey, now senior vice president and COO for the Milwaukee-based Alliance for Children and Families. ■ Felicia Wasson, former director of public policy for the Michigan Health Ministries of Ascension Health, has become associate state direc- tor for government relations at AARP Michigan. She replaces Bill Knox, who retired. ■ Jason Moon, former communi- cations director with the Michigan Democratic Party, has become pub- lic-information officer at the Michi- gan Office of Financial and Insurance Services. He replaces Kathy Fagan, now a communications specialist with the Michigan Department of La- bor & Economic Growth. ■ Deena Bosworth, policy devel- opment coordinator for the House Republican Caucus, has been named legislative director. She re- places Jennifer Spike, now chief of staff to House Minority Leader Craig DeRoche, R-Novi. Amy Lane: (517) 371-5355, [email protected]

EARNINGS Compuware Corp. Nasdaq: CPWR 3rd Quarter Dec. 31 2007 2006 Revenue ...... $309,335,000 $315,148,000 Net income ...... $35,614,000 $36,486,000 Earnings per share ...... $.13 $.11 9 months Revenue ...... $890,695,000 $899,973,000 Net income ...... $73,219,000 $90,616,000 Earnings per share ...... $.25 $.25 Somanetics Corp. Nasdaq: SMTS 4th Quarter Nov. 30 2007 2006 Revenue ...... $11,275,273 $7,684,289 Net income ...... $2,799,585 $5,343,847* Earnings per share ...... $.19 $.37 12 months Revenue ...... $38,585,832 $28,700,600 Net income ...... $9,682,281 $10,399,957* Earnings per share ...... $.67 $.75 *Included a deferred tax benefit of $3,354,663

BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Jan. 18- 24. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Kids Play Cafe L.L.C., 306 S. Main St., Plymouth, voluntary Chapter 7. As- sets and liabilities not available. Liberator Technologies L.L.C., 34270 Riviera St., Fraser, involuntary Chap- ter 7. Assets and liabilities not avail- able. — Compiled by Jonathan Eppley DBpageAD.qxd 1/7/2008 10:24 AM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS January 28, 2008 OPINION Beatty must resign, mayor must respond

mong the things most people learn in kindergarten: Don’t lie. A Among the things most people know as an adult: Don’t lie under oath. If Mayor Kwame Kilpatrick or his chief of staff, Christine Beatty, had learned either of those lessons, we would not now be witnessing the painful spectacle of careers in meltdown and metro Detroit taking another body blow to its reputation. What were they thinking? We understand the desire to cover up an affair. But Kil- patrick, a lawyer, and Beatty, a law student, allegedly lied un- der oath about their relation- ship. They also may have lied The mayor and about whether they fired Christine Beatty Deputy Police Chief Gary Brown and former Police Pffi- have much to cer Harold Nelthrope in retali- ation for their roles in an inter- answer for. nal investigation of the mayor’s security team. A civil LETTERS suit filed over the alleged firing resulted in an $8.4 million set- tlement paid for with Detroit tax dollars. They face the possibility of going to jail in addition to possi- Group helps financial literacy bly losing their positions and their ability to practice law. Prosecutor Kym Worthy’s office is conducting an investiga- Editor: nance knowledge and skills. tion to determine if perjury charges should be filed. I am writing in response to the Crain’s Detroit Business Thank you for highlighting the welcomes letters to the editor. Kilpatrick and Beatty have much to answer for, and here’s “Gifts we hope keep on giving” ar- importance of financial literacy in All letters will be considered for ticle (“Opinion”) in the Dec. 24 is- your paper. By working together, how they should start: publication, provided they are sue of Crain’s. I was so pleased to we can ensure a bright and suc- ■ Beatty has lost credibility with city employees and the signed and do not defame see the paragraph referencing the cessful future for our youth and all public and needs to resign now, and not wait for the mayor to individuals or organizations. Junior Achievement of Southeast- of our communities. have to fire her, a further embarrassment neither of them Letters may be edited for length ern Michigan, the Michigan Coun- and clarity. Diane Knudson needs. Her intentions are unclear. A spokesperson for Beatty cil on Economic Education and Michigan Jumpstart Coalition for Financial Literacy Write: Editor, Crain’s Detroit Plymouth their focus on improving financial said Friday she does not intend to resign, a statement called Business, 1155 Gratiot Ave., unauthorized by the mayor’s office. In any event, Kilpatrick literacy in Michigan. I wanted to Detroit, MI 48207-2997. Retirees are valuable bring to your attention another Editor: then needs to replace her with a strong, reputable person who E-mail: [email protected] group, the Michigan Jumpstart Loved Mary Kramer’s column will be able to command respect. Coalition, whose goal is to im- on retirees contributing to the fu- ■ the teaching of personal finance The mayor is, if anything, more culpable than Beatty, but prove the personal financial liter- ture of Michigan (“Business acy of Michigan youth and young by demonstrating how personal fi- his position as Detroit’s elected leader means that a quick res- should tap boomers, retirees,” people. nance topics relate to existing ignation may not be the best thing for the city. Jan. 21). Well said. The coalition works with finan- Michigan educational standards What he needs to do is walk outside and address the public. Marianne Williamson, the for- cial institutions, educators, par- and benchmarks; promote teacher He needs to take responsibility for his actions and make his mer Renaissance Unity spiritual ents and business leaders through- education workshops and confer- director, would often say that the case for why he should be allowed to continue in office. out our state. We work to increase ences that increase educator answer to any problem lies within And then he needs to do his job, take the heat and accept public and educator awareness of awareness of personal finance the problem itself. If a legion of re- the fact that he needs to keep the city moving forward regard- the need to improve the personal content, materials and activities tirees, like the out-of-workers dur- less of whether he’s forgiven. financial literacy of our youth; fa- to assist in the teaching/learning ing the Depression became the cilitate business community in- process and promote the use of Civilian Conservation Corps, to- If he can’t do that, he needs to resign. Detroit deserves bet- volvement in the activities and computers by teachers and stu- day’s retirees — with cash and ter. programs of the coalition; promote dents in order to gain personal fi- See Letters, Page 9

KEITH CRAIN: I’m saddened by Kilpatrick scandal Detroit was on a roll. Everyone I wall. You crash. him mature a lot, and we but we’ve lost some of our momen- it won’t help me or the rest of us. know was feeling a lot better about You are innocent un- had high hopes for his tum and, more important, we’ve I guess we have to hunker down the city and the economic prospects til proven guilty. That’s second term. It wasn’t a lost some of our pride and our en- and start to figure out what’s going for our community. It didn’t matter landslide, but 53 percent what the law says. But I thusiasm. to happen to our city and what if you lived, worked or simply were hate the fact that I have of the citizens gave him You and I don’t know what’s go- their vote. we’re supposed to do now. But part of the Detroit community. to use such a phrase ing to happen. I don’t have a crys- Things were really right now I don’t have the stomach Things were looking up. when I’m talking about tal ball. And right now, I don’t real- We were proud of our city and looking up. A lot of people for it. Right now, we’re all still just our mayor. ly care. That’s the worst part of the proud of Mayor Kwame Kilpatrick. We, the Detroit com- were getting excited about a little bit too shocked. whole thing. I don’t really care. I, Not anymore. munity, put up with a the prospects for our city I feel like I’ve lost a friend. Sure, and our community. A lot along with a whole lot of others, I simply have a sick feeling in lot during the mayor’s I’ll still like Kwame Kilpatrick. the pit of my stomach. It’s like first term. He was of people were getting in- feel like we’ve been betrayed. No He’s a nice guy with a great wife you’re leading the Indianapolis 500 young, energetic and volved who had never trial is going to help, regardless of and some terrific kids. But and two laps from the finish your enthusiastic. He also made a lot of been before. the outcome. We’re just a bit car breaks. Some stupid mistake mistakes and sometimes exercised We all had hope. numb. whether I want to admit it or not, on your part brings your winning bad judgment. But we still had Now a lot of that’s gone. I don’t Maybe the mayor can pull off a le- I’m stunned. car to a grinding halt against the faith and we all thought we saw know if we’re back to square one, gal miracle. That will help him. But And I’m sad. DETROIT BUSINESS MAIN 01-28-08 A 37 CDB 1/25/2008 6:18 PM Page 1

January 28, 2008 CRAIN’S DETROIT BUSINESS Page 37 Survey: Sense of community important to entrepreneurs ■ From Page 1 businesses and determine commu- findings. nity attractions that are likely to “If we can create vibrant places HOW ‘COMMUNITY’ HELPS BUSINESS EXPENSES keep them in Michigan, while en- that people want to live and work Respondents rated on a scale of 1-5 how helpful The biggest costs of doing business, by percentage: couraging more entrepreneurship in, then our economy will reach a community factors were to their business: in the state. tipping point,” Weinfeld said. The results of SBAM’s work are Recruiting quality employees 3.2 Labor costs 32% Clevey believes SBAM’s study expected to be released in a report will help to show what communi- Community infrastructure 3.2 Insurance costs 19% next year, which the Michigan Mu- ties can do to attract entrepre- Many established organizations nicipal League will present to its Tax/permitting requirements 11% neurs beyond using general eco- in the same industry 2.9 members. Transportation and energy costs 11% “Robust communities, commu- nomic-development tools. Start-up financing 2.8 “It’s more than fancy street Recruiting/retaining quality employees 11% nities that are growing, have an Real estate costs 2.9 entrepreneurial component,” said lights and restaurants,” Clevey Government regulatory compliance 7% Mark Clevey, SBAM’s vice presi- said. “It’s that the community sup- Government regulatory compliance 2.8 Real estate costs 6% ports them.” dent of entrepreneurial develop- Tax/permitting requirements 2.6 Other 3% ment. “So the Sheena Harrison: (313) 446-0325, Source: SBAM Small Business Barometer survey Source: SBAM Small Business Barometer survey question they [email protected] are asking is, ‘Does a commu- nity attract en- trepreneurs, or do entrepre- neurs create community, or both?’ ” Clevey SBAM con- ducts a quarterly Small Business Barometer survey, which polls about 200 of its members on issues including sales, profitability, ex- pected business performance and politics. In the most recent Barometer, released last week, entrepreneurs were asked how “community” plays into their success. Respondents rated how helpful :finding certain community factors were to their businesses on a scale of 1 through 5. “Recruiting quality em- ployees” and “community infra- structure” both received an aver- the i i IS EVERYTHING age rating of 3.2, and were listed as r ght f t the top two factors that helped when it comes to business advice— small businesses in the startup phase. or deciding where to work. State taxes and permit require- ments received the lowest score, with an average rating of 2.6. Virchow Krause has the people, Companies were then asked to name their biggest cost of doing experience and depth of capabilities business. Thirty-two percent of re- spondents named labor costs as essential to fit your expectations. their biggest burden, while 19 per- cent cited insurance costs. That set of questions allowed SBAM to get a preliminary idea of DISCOVER VIRCHOW KRAUSE. issues that entrepreneurs are deal- CALL CRAIG NELSON AT ing with, Clevey said. SBAM will ask its members 248.368.8806 TODAY. more community-related ques- tions in upcoming Barometer re- ports in hopes of gathering specific suggestions. Arnold Weinfeld, director of public policy and federal affairs for the Michigan Municipal League, said the league and MSHDA have formed a “Sense of Place” council to find out how Michigan commu- nities can be more attractive to po- tential residents and businesses. “We found that we had a com- mon goal, and that was trying to come up with strategies and ideas to make Michigan’s communities Certified Public Accountants a vibrant place to live,” Weinfeld & Consultants said. The group includes several www.virchowkrause.com groups of stakeholders, including community-development officials, higher education representatives and business groups. The Michi- gan Municipal League and MSH- DA are working with each group to find ways to improve quality of © 2008 Virchow, Krause & Company, LLP life in the state and are collaborat- ing with SBAM to incorporate en- trepreneurship into the council’s DETROIT BUSINESS MAIN 01-28-08 A 38,39 CDB 1/25/2008 6:06 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS January 28, 2008 Renaissance: Group takes ec ■ From Page 3

THE RENAISSANCE AGENDA The following were proposed last week by Detroit Renaissance Inc. to improve Michigan’s economy: Short-term recommendations: and fire employee contracts. Ⅲ State budget growth should 5. Eliminating barriers to be flat. No new programs consolidation for municipal should be added without governments. corresponding budget cuts or 6. Requiring public schools to an increase in revenue. provide noninstructional Ⅲ Political leaders should begin services in the most cost- projecting revenue over a two- effective manner, including year period, instead of the outsourcing those services. current one-year forecast. 7. Bringing Medicaid spending Ⅲ Government should support in line with other states. the growth of existing Michigan Ⅲ State government should businesses. make the cost of doing Ⅲ The state should invest its business in Michigan capital resources in economic competitive with those states stimulus projects to promote its we compete with for jobs, overall competitiveness. including Midwest and Southern states. To improve Michigan’s Ⅲ Government officials who competitiveness: administer regulatory programs should help businesses comply Ⅲ Political leaders should with those programs as part of enact reforms to minimize the their duties. need for new sources of Ⅲ The state should revenue. aggressively seek to increase This can be accomplished by: federal funding coming back to 1. Bringing spending for Michigan. Michigan’s prisons in line with Ⅲ The most important priority other Great Lakes states. for the state should be 2. Bringing local government providing the next generation and public school employee with the education they need to pensions in line with those of excel in a changing economy. state employees. Ⅲ State investments should 3. Bringing local government and focus on initiatives that have public school employee health the greatest long-term care benefits in line with those economic impact on Michigan. of state employees, and bringing To read the complete version of state employee benefits in line the reform plan proposed by with those in the private sector. Detroit Renaissance, visit: 4. Eliminating binding www.detroitrenaissance.com/ arbitration for municipal police node/149

Sterling: Firm stays in the ‘f ■ From Page 3

year. The new owners would like that the employees be given the to reach $1.75 million in sales their first opportunity to (purchase),” first year. said Melvyn Goldstein, an attor- Marcie Rivera, former executive ney for the Bellotto family trust. administrator and now president The three employees secured a of the company, said Sterling Of- financing agreement to pay off fice Systems would like to grow by debt the company owed to the fam- expanding its line of products. ily trust over time, and in return She also said she has stayed in they were able to acquire all close contact with Bellotto’s shares of the company stock at a daughters, and the sale reflects the nominal sum, Goldstein said. family wishes. Sterling Office Systems is a ven- “The girls just wanted to keep dor of Sharp photocopier products, the business running the way it as well as digital imaging systems had been running and keep it as a and paper shredders. local business,” she said. “And It’s also a repair and service con- that was also important to us, tractor. From its start with three since we were committed to stay- employees in 1999, it grew to a ing here and wanted to continue peak of 13 and recently trimmed to what he had started.” its current staff of nine before Bel- Rivera, Polites and service man- lotto became ill. ager-turned Vice President of Ser- Ernie Albert, president and vice John Wetherbee Jr. acquired owner of Kerr-Albert Office Supply the company Jan. 2. Inc., which has offices in Fraser Financing was for an undisclosed and Port Huron, said he wasn’t sum of debt “under $300,000” owed among the prospective buyers of to the Bellotto family trust, which Sterling Office Systems and knew will be repaid through the compa- Bellotto casually. ny’s future income. But he had followed the situa- “The family’s strong and stand- tion from a distance when the com- ing preference in the matter was pany needed a new owner. DETROIT BUSINESS MAIN 01-28-08 A 38,39 CDB 1/25/2008 6:07 PM Page 2

January 28, 2008 CRAIN’S DETROIT BUSINESS Page 39

s economic ideas to Lansing RENAISSANCE INC.’S POLITICAL A-TEAM As part of its agenda to improve the health of Michigan’s economy and to reform government to accelerate economic growth, Detroit priorities by the chamber. rections so as not to have the same If Brandon and Rothwell can do Renaissance Inc. last year formed seven committees to meet directly Rich Studley, vice president of mess as last year again,” he said. that with Senate Majority Leader with political leaders. the Michigan Chamber of Commerce, Bill Ballenger, editor of the Mike Bishop, R-Rochester; House The new committees and their chairpersons are: said his organization has “a good newsletter Inside Michigan Politics, Speaker Andy Dillon, D-Redford relationship with Detroit Renais- said Detroit Renaissance may find Township; and Daniel Krichbaum, Ⅲ Governor: Richard Manoogian, Ⅲ Wayne County political sance, and we talked with them last itself to be one voice among many Gov. Granholm’s COO and chief of chairman and CEO, Masco Corp. leadership: Sandra Pierce, year about these issues.” in Lansing. staff; he said, then they could be- Ⅲ State legislative delegation: president and CEO, Charter One Studley said part of the problem “Is there a void that they are come major players. John Rakolta Jr., chairman and Bank. has been that taxpayer and busi- uniquely equipped to fill? I don’t But Ballenger says that’s a long- CEO, Walbridge Aldinger Co. Ⅲ Oakland County political ness advocates are often “substan- think so,” Ballenger said. shot. Ⅲ Federal delegation: Anthony leadership: Tom LaSorda, co- tially outnumbered by lobbyists for Influencing budget discussions “Trying to become more of a play- government employee unions and in Lansing boils down to the ability er and making it so, are two differ- Early Jr., chairman and CEO, chairman and COO, Chrysler the interest groups” that benefit di- to forge relationships and to push ent things,” he said. DTE Energy Corp. Corp. rectly from higher taxes and more compromises among feuding fac- Robert Ankeny: (313) 446-0404; Ⅲ Detroit mayor and city Ⅲ Macomb County political government spending. tions, said Ballenger, himself a for- [email protected] council: Dave Bing, chairman leadership: Alfred Glancy III, Especially last year, Studley mer Michigan Republican state sen- Brent Snavely: (313) 446-0405; and CEO, The Bing Group. chairman, Unico Investment Co. said, the appropriations process ator and representative. [email protected] was driving tax policy. “We’ve advocated a similar posi- tion on government reform for quite some time and welcome the involvement of Detroit Renaissance and other business groups.” Chuck Hadden, vice president of Every one of these individuals made a governmental affairs for the Lans- difference in the future of our ing-based Michigan Manufacturers As- sociation, said the Renaissance re- region this past year. form suggestions “are on the same path” as those proposed by the man- ufacturers’ association. Thank you all for all you do. “I like their short-term and long- term goals,” he said. These executives, by serving as Directors of Detroit Renaissance, gave generously of their time and talents in 2007 to help Hadden’s association, founded in transform the economy of the region and Detroit. They helped launch the Road to Renaissance economic growth plan. They 1902, has nearly 3,000 members ranging from small manufacturing helped support new business attraction efforts for Detroit. And they advocated for ways to make us more competitive for companies to some of the world’s business growth. We appreciate their contributions to our community. largest corporations.

Hadden said that quite a few busi- OFFICERS: MARY SUE COLEMAN* TIMOTHY D. LEULIETTE RICHARD F. RUSSELL* ness groups “went to the well a cou- DAVID A. BRANDON* President Director, Co-Chairman of the Board and Co-CEO President & CEO ple of times to help the state.” CHAIR, BOARD OF DIRECTORS University of Michigan Asahi TEC Corporation Amerisure Mutual Insurance Company Chairman & CEO c/o Metaldyne Corporation WILLIAM CONNORS GARY D. RUSSI Now, he said, lawmakers and Domino’s Pizza President DANIEL J. LOEPP President other officials “want to move on WILLIAM CLAY FORD, JR.* Comcast Midwest Division President & CEO Oakland University CHAIR, EXECUTIVE COMMITTEE Blue Cross & Blue Shield of Michigan and forget it.” PETER D. CUMMINGS ALAN E. SCHWARTZ* Executive Chairman Chairman RICHARD A. MANOOGIAN* Senior Member “We’re not going to let that hap- Ford Motor Company Ram Development Company Executive Chairman Honigman, Miller, Schwartz & Cohn pen. Some reforms and changes JAMES B. NICHOLSON* Masco Corporation DONALD DAVIS LOU ANNA KIMSEY SIMON need to be made, and we need to do VICE CHAIR, EXECUTIVE COMMITTEE Chairman of the Board FLORINE MARK President President & CEO it now to get a better situation for First Independence National Bank President & CEO Michigan State University PVS Chemicals, Inc. The WW Group business down the pike,” he said. ANTHONY F. EARLEY, JR.* REBECCA SMITH DOUG ROTHWELL* Chairman & CEO CHARLES G. McCLURE President – East Michigan “We keep hearing the Lansing President DTE Energy Company Chairman, President & CEO The Huntington National Bank Detroit Renaissance politicians saying things are fine ArvinMeritor, Inc. now, but we need to make some cor- MEMBERS: W. FRANK FOUNTAIN DOUGLAS M. STEENLAND* Senior Vice President, THOMAS D. OGDEN* President & CEO TERENCE E. ADDERLEY External Affairs & Public Policy President, Michigan Market Northwest Airlines Corporation Chairman Chrysler Corporation Comerica Bank Kelly Services, Inc. STEPHEN STROME RODERICK GILLUM CYNTHIA J. PASKY* Chairman & CEO RANDOLPH J. AGLEY Vice President, Corporate Relations and Diversity Founder, President & CEO Handleman Company Chairman & CEO General Motors Corporation Strategic Staffi ng Solutions Talon LLC ROBERT S. TAUBMAN DAVID GIRODAT ROGER S. PENSKE* Chairman & CEO JOSÉ MARIA ALAPONT President & CEO Chairman The Taubman Company he ‘family’ Chairman, President & CEO Fifth Third Bank Penske Corporation Federal Mogul Corporation S. MARTIN TAYLOR (EX-OFFICIO) ALFRED R. GLANCY III* WILLIAM F. PICKARD Chairman JAY N. BAKER Chairman of the Board Chairman & CEO Detroit Economic Growth Corporation Group Vice President Unico Investment Company Global Automotive Alliance “When that situation was going BASF Corporation GAIL TORREANO* CHRISTOPHER ILITCH* SANDRA E. PIERCE* President on, there was some information DON H. BARDEN President & CEO President & CEO AT&T Michigan Chairman & CEO passed onto me from Sharp about Ilitch Holdings, Inc. Charter One Bank Barden Companies, Inc. SAMUEL VALENTI III it,” he said. “But that’s all I knew. I MICHAEL F. JOHNSTON CHARLES H. PODOWSKI Executive Chairman, TriMas Corporation JON E. BARFIELD Chairman & CEO President & CEO President, Masco Capital wasn’t interested in (the compa- Chairman & President Visteon Corporation The Auto Club Group ny). It’s a large enough market The Bartech Group, Inc. JAMES VELLA GEORGE L. JONES STEPHEN R. POLK President, Ford Motor Company Fund & that we don’t necessarily step on DAVE BING* President & CEO Chairman & CEO Community Services Chairman & CEO each other’s toes. It does happen, Borders Group, Inc. R. L. Polk & Co. Ford Motor Company The Bing Group but not much.” DAVID W. JOOS JOHN RAKOLTA, JR. RICHARD R. WADE BEDA BOLZENIUS President & CEO Chairman & CEO President Polites said the family did re- President - Automotive Experience CMS Energy Corporation Walbridge Aldinger Company Chase – Michigan ceive several other offers to buy Johnson Controls, Inc. PETER KARMANOS, JR. IRVIN D. REID G. RICHARD WAGONER, JR.* DAVID A. BOYLE the business, but those offers did- Chairman & CEO President Chairman & CEO President & CEO Compuware Corporation Wayne State University General Motors Corporation n’t have “any assurances about National City Bank – Michigan our future at this location.” The TOM LASORDA* ROBERT E. ROSSITER WILLIAM C. YOUNG KIETH COCKRELL Vice Chairman & President Chairman & CEO CEO new partners learned in the Region Executive & President Michigan Market Chrysler LLC Lear Corporation Plastipak Holdings, Inc. process that some competitor prac- Bank of America tices can be shady, Rivera recalls. * Member of the Executive Committee “There are some sharks out there. We found that out,” she said. Each of the three employees has an equal ownership stake in the company, but the trio has consid- ered reallocating shares to make Leadership For Greater Detroit’s Economic Growth. Rivera a majority owner soon. Sterling Office Systems also may consider hiring again as it DetroitRenaissance.com grows, but first the company must evaluate its finances over the next few months. Chad Halcom: (313) 446-6796, [email protected] DETROIT BUSINESS MAIN 01-28-08 A 40,41 CDB 1/25/2008 6:03 PM Page 1

Page 40 CRAIN’S DETROIT BUSINESS January 28, 2008 Cobo: Questions Tax-free zones need shows ■ From Page 3 making product announcements at the North American In- ternational Auto Show. Patterson’s office said the language needs to be clear Out-of-state shoppers are key to success that Rock Financial Showplace in Novi is included in the “sales tax-free” zone concept. BY DANIEL DUGGAN “You can have a dog show and a boat show in every re- Republicans in the Legislature say they are open to CRAIN’S DETROIT BUSINESS gion, so the trick is going to be to find shows that are a more working on the pending bills in a bipartisan manner, and national draw,” he said. “It will be an interesting business agree with the need to expand Cobo and to enhance and With the possibility of “sales tax-free zones” being created opportunity.” secure the marquee Detroit auto show. to promote Michigan as a conference destination, officials The Detroit Camper and RV Show is already thinking “I do believe that this is in the best interest of the state of are now figuring out how to best use the tool. about changes. Michigan to try to find a solution that works,” said House Consumer-oriented shows are expected to grow in this RVs are not currently sold on the show floor. Rather, pur- Minority Leader Craig DeRoche, R-Novi. However, De- area, attracting out-of-state shoppers. chase agreements are signed at the show and the deals are Roche said he has concerns about “issues that have been “It would definitely grow our Michigan shows,” said Ja- closed at dealerships, said Bill Sheffer, director of the Michi- identified by Patterson and other leaders as it relates to the son Silberberg, marketing director for the Maryland-based gan Association of Recreational Vehicles and Campgrounds. sharing of finances,” and he does not currently support the International Gem and Jewelry Show Inc., which puts on 80 “But our dealers could very quickly rectify that,” he said. bills as they’ve been described to him for introduction. shows around the country each year, including four in Tax-free purchases would draw consumers from around Matt Marsden, press secretary to Senate Majority Michigan. the state, but out-of-state buyers could spark new questions. Leader Mike Bishop, R-Rochester, said Cobo is “a critical He said the two shows at the municipal center in South- At issue is the “use tax,” which residents of a state are re- part of Detroit and the surrounding counties, and the ex- field could conceivably be big enough for Cobo. quired to pay when they purchase something out-of-state or pansion of it, to build a greater auto show, is certainly a “I can see that being more enticing for the dealers who online that was tax-free, said June Summers Haas, a partner good thing. But the proof is in the pudding, and we need don’t normally get involved with Michigan shows,” he said. with the Detroit-based Honigman Miller Schwartz and Cohn L.L.C. to look at more of the details.” Electronics shows could be targeted, and clothing shows. For example, an Ohio resident who comes to Detroit for a Some of those details are in an impending legislative The existing Detroit Boat Show expects growth too, as a result. jewelry show and buys a diamond ring is obligated to pay a package expected to include at least three central provi- The problem, people in the industry say, is that most con- use tax on that purchase to the Ohio government. However, sions: Creation of a public authority that would own and sumer-oriented shows are regional in nature and are less de- “individuals’ compliance with use-tax obligations is not 100 run Cobo, extending earmarked hotel and liquor taxes pendent on hotels. percent,” Haas said. from a scheduled 2015 expiration to 2022, and establish- National shows — which attract attendees who stay in ho- But if a boat is purchased by an Ohio resident, then deliv- ment of a sales tax-free zone at Cobo. tels for days at a time — are typically by nonprofits or asso- ered to a Michigan marina, it would be used in Michigan Macomb County Board of Commissioners Chair ciations, said Barry Strafacci, vice president with Global and not subject to an Ohio use tax, she said. William Crouchman said his main disagreement with Spectrum, a Philadelphia-based convention center manage- Terry Stanton, public-information officer at the Michigan the latest plan is that he hasn’t seen the latest plan. ment company that runs 70 centers in the U.S. Department of Treasury, said “any tax-free zone at Cobo or in “I still don’t know all the details,” he said. “All I know He is also director of convention centers for the Interna- other locations would have to be limited to avoid significant is what I’ve read in the papers.” tional Association of Assembly Managers. revenue implications to the state or a negative impact on Overall, Crouchman questions the impact Macomb “Most business-to-business trade shows, conventions and public school funding.” County receives from the center. A report by economist exhibitions are geared toward promoting products,” he said. Stanton also said that Treasury would want to avoid ad- David Sowerby shows a 10 percent return for the county, “It’s not typical to carry products off the show floor.” verse effects on “brick-and-mortar retailers” or “providing but Crouchman doubts that figure. It will be a marketing challenge to find the right shows to anyone with an unfair competitive edge over traditional re- “I’ve talked to some restaurant and hotel owners here, fit the incentives, said Chris Baum, vice president of sales tailers.” and they aren’t getting anything,” he said. for the Detroit Metro Convention and Visitors Bureau, which Crain’s reporter Amy Lane contributed to this story. Amy Lane: (517) 371-5355, [email protected]; Daniel markets Cobo Center. Daniel Duggan: (313) 446-0414; [email protected] Duggan: (313) 446-0414

WHAT YOU NEED AT THE BORDER Border: Rules may cause delays New driver’s license On Jan. 31, U.S. and Canadian citizens age 19 and older will have two options to prove identity and ■ From Page 1 citizenship to gain entry through any U.S. land or sea rules affect those port. Oral declarations will no longer be accepted. passports or prescreened commuter card on the economic damage of fewer Canadi- (Nexus), or a combination of a driver’s li- ans visiting or working here because of bor- Single-document option cense and a birth certificate. der concerns. with work visas One of the follow documents must be presented at On June 1, 2009, stricter requirements go “It’s hard to separate that from our over- the border to prove both identity and citizenship: into place. U.S. and Canadian citizens must all economic decline, but it doesn’t help,” LANSING — A new require- Ⅲ U.S. or Canadian passport. have a passport (or a yet-to-be-issued pass- she said. “We’re making it harder for people ment that Michigan drivers must Ⅲ U.S. passport card (available this spring). port card) or another document from a nar- to come here.” demonstrate U.S. citizenship or Ⅲ NEXUS, SENTRI or FAST card. rower list of options. A license and birth Border traffic worries could get some re- permanent legal presence is stir- Ⅲ State or provincial enhanced driver’s license. certificate won’t be enough. lief later this year when U.S. Customs and ring concern among business. Ⅲ U.S. military identification with military travel For now, travelers who don’t have the Border Protection installs equipment at all The problem is that people from orders. proper documents will be given a list of lanes at the bridge and tunnel to allow them other countries here legally, with Ⅲ U.S. Merchant Mariner document. what they need in the future along with an to process participants in prescreened com- work visas, are not considered per- Ⅲ Enhanced tribal card. explanation of the law. Customs officers and muter traveler programs, such as Nexus. manent residents. Ⅲ Native American tribal photo ID card. toll takers at the bridge and tunnel have The tunnel, for example, has two lanes And that could eventually affect driver’s licenses held by workers Ⅲ Form I-872 American Indian card. been handing out flyers that explain the dedicated for its 5,000 daily Nexus users. rule changes, and are answering questions. Meanwhile, driver’s licenses that meet in all sectors of the economy, in- Ⅲ Indian and Northern Affairs Canada card. “We’re using this time frame to educate the 2009 federal border requirements could cluding health care, technology, Two-document option travelers,” said Ron Smith, a pubic-affairs soon be a reality in Michigan. sports teams, and universities. U.S. and Canadian citizens that don’t have one of officer in Detroit for the U.S. Customs and The state Senate transportation commit- “In this effort to keep illegals the documents above must present both an Border Protection, which is in charge of en- tee is scheduled to begin hearing testimony from getting a driver’s license, you identification document and citizenship document forcing the new regulations. Thursday on legislation that would intro- take out all these people who are from the list below. Now is a good time for U.S. Customs to en- duce an “enhanced” Michigan driver’s li- here legally,” said Sarah Hubbard, act the rules because it’s not a peak travel cense, said the office of committee chair- vice president of government rela- Identification documents time, said Dan Stamper, president of the De- man Jud Gilbert, R-Algonac. Detroit tions, Detroit Regional Chamber. The issue stems from a Decem- Ⅲ Driver’s license or ID card issued by a federal, troit International Bridge Co., which owns and Democrat Steve Tobocman, whose district state, provincial, county, territory or municipal operates the Ambassador Bridge. includes the bridge and tunnel, is a sponsor ber ruling by Michigan Attorney authority. The bridge company is spending $5 mil- of similar bills in the House. General Mike Cox that said, under Ⅲ U.S. or Canadian military ID card. lion to add seven new car lanes to the 12 Such a license would have security fea- current law, only those people who now at the border, and expects them to be tures that meet federal requirements for the are in the country legally and per- manently can be issued Michigan Citizenship documents ready for government use in the next three new policies, and it would be available only weeks, Stamper said. He doesn’t know when to legal Michigan residents. driver’s licenses. Ⅲ U.S. or Canadian birth certificate issued by a officials will have them running. Farrer, an administrator of emergency Secretary of State Terri Lynn federal, state, provincial, county, territory or Land is seeking changes that municipal authority. Getting people educated quickly is vital departments for Henry Ford, said she’s to Detroit’s economic health, said Sarah braced for the new ID requirements. She’s a would allow for a driver’s license Ⅲ U.S. consular report of birth abroad. Hubbard, vice president of government re- Nexus cardholder. or identification card for people Ⅲ U.S. certificate of naturalization. lations for the Detroit Regional Chamber. The “The commuters are used to having to here legally but temporarily, like Ⅲ U.S. certificate of citizenship. strong Canadian dollar should have more carry all our ID with us. I don’t see it as a those on work or study visas. Ⅲ U.S. citizen ID card. Ontario residents shopping here, but the big deal for us. ... I do anticipate that there The measures are part of Senate Ⅲ Canadian citizenship card. numbers aren’t as high as expected. are those people out there who don’t read the Bill 962, scheduled to be taken up Ⅲ Canadian certificate of citizenship without photo. “We think it’s the confusion that people flyer and crumple it up and throw it in their on Thursday in the Senate Trans- Source: U.S. Customs and Border Protection think they need a passport right now.” backseat.” portation Committee. The chamber doesn’t have hard numbers Bill Shea: (313) 446-1626, [email protected] — Amy Lane DETROIT BUSINESS MAIN 01-28-08 A 41 CDB 1/25/2008 6:39 PM Page 1

January 28, 2008 CRAIN’S DETROIT BUSINESS Page 41

www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or Scandal’s damage seen as minimal [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] Partnership, both declined comment. MANAGING EDITOR Andy Chapelle, (313) 446- George Jackson Jr., president of Detroit Eco- 0402 or [email protected] Businesses stay CHRONOLOGY OF THE SCANDAL ASSISTANT MANAGING EDITOR/FOCUS Jennette nomic Growth Corp., the city’s quasi-public devel- Smith, (313) 446-1622 or [email protected] On Thursday, the Detroit Free Press published a opment arm and a Kilpatrick appointee, said BUSINESS LIVES EDITOR Michelle Darwish, (313) upbeat — or silent story on its examination of more than 14,000 he’s staying out of the controversy and believes 446-1621 or [email protected] text messages exchanged by Detroit Mayor COPY DESK CHIEF Gary Piatek, (313) 446-0357 his agency can too. or [email protected] Kwame Kilpatrick and his Chief of Staff Christine BY SHERRI BEGIN “I’m in business to do business for the city, GRAPHICS EDITOR Nancy Clark, (313) 446-1608 Beatty. or [email protected] CRAIN’S DETROIT BUSINESS and that’s what we’ll keep on doing,” Jackson The messages, some of which were sexually COPY EDITOR Vic Doucette, (313) 446-0410 said. or [email protected] The controversy over Detroit Mayor Kwame explicit, raised the question of whether the two DATA EDITOR Anne Marks, (313) 446-0418 or Kilpatrick’s civil-suit testimony last year won’t committed perjury during a whistle-blower trial William Brooks, CEO of United American [email protected] hamper the region’s revitalization, many local last summer when they denied having a Healthcare Inc., a member of the Downtown Devel- WEB GENERAL MANAGER Alan Baker, (313) 446- romantic relationship. The case ultimately was opment Authority board and a one-time mayoral 0416 or [email protected] companies said late last week. WEB EDITOR Kevin Hill, (313) 446-0473 or “I got up this morning, and the sun is out, settled for $8.4 million. candidate who supported Kilpatrick’s re-elec- [email protected] The trial in question arose from a lawsuit filed by tion in 2005 with a significant fundraiser, along WEB DESIGNER/PRODUCER Ai-Ting Huang, they are still building hotels, taxis are running, (313) 446-0403, [email protected] buses are running. This is not a pretty situa- two police officers who alleged they were fired with PVS Chemicals Chairman and Detroit Re- MULTIMEDIA REPORTER Nathan Skid, (313) tion, but as a city and a region, we’ll get for investigating claims from two former naissance Inc. vice chairman Jim Nicholson, 446-1654, [email protected] through this,” said Jason Vines, senior vice bodyguards that the mayor used his security unit said he thinks the controversy creates a lot of EDITORIAL SUPPORT Anita Duncan, (313) to cover up extramarital affairs. 446-0329; Joanne Scharich, (313) 446-0419 president, Compuware 2.0 at distraction for the city and the mayor. NEWSROOM (313) 446-0329, FAX (313) 446- Compuware Corp. Kilpatrick and Beatty testified that the officers “My hope is that we can get past this blip in 1687 TIP LINE (313) 446-6766 were not fired, statements which some of the The revitalization of De- the road. I think this guy is doing an outstand- text messages appeared to contradict. REPORTERS troit and the region can’t be ing job. His vision is appropriate, and the city Brent Snavely, senior reporter: Covers auto on any one person’s shoul- Kilpatrick issue a brief statement Thursday needs his leadership.” suppliers, steel and restaurants. (313) 446-0405 referring to publication of the “extremely private or [email protected]. ders, he said. “The mayor There are more important and dire issues at Robert Ankeny: Covers the city of Detroit, Wayne message” as “profoundly embarrassing.” But as County government, and law. (313) 446-0404 or has been a catalyst, without of late Friday, neither Kilpatrick nor Beatty had hand for Detroit and the region than the scandal [email protected]. question, but one of many.” of an elected official, said Funmi Masha-Olani- Sherri Begin: Covers nonprofits and education. appeared in public to explain their actions. (313) 446-1694 or [email protected] Others echoed those senti- However, The Detroit News reported Friday that ran, managing and founding partner of Macro- Daniel Duggan: Covers real estate and hospitality. ments. strategy L.L.C. in Detroit, in an e-mail to Crain’s. (313) 446-0414 or [email protected] Beatty’s attorney, Elliott Hall, said Beatty Chad Halcom: Covers services, environment and Vines Quicken Loans and its relat- intends to stay on the job. “We should let this perjury case be handled Oakland and Macomb counties. (313) 446-6796 or [email protected]. ed companies’ commitment However, James Canning, Kilpatrick’s interim through the proper legal channels and not tried Tom Henderson: Covers banking, finance and to build new headquarters in downtown Detroit and judged in the court of public opinion.” technology. (313) 446-0337 or press secretary, said Hall was not authorized to [email protected]. “is long-term and transcends any short-term speak on behalf of Beatty. At a time when Detroit is going through Bill Shea: Covers media, advertising and marketing, entertainment, the business of sports, event or challenge,” said Chairman Dan “She will make her own announcement in the downtown development unparalleled since the and Livingston and Washtenaw counties. (313) Gilbert, who was out of town late last week but near future,” Canning told Crain’s. boom of the 1920s and “the barriers of city 446-1626 or [email protected] issued a written statement. Kilpatrick and Beatty, both 37, have been dwellers and suburbanites (are) slowly being LANSING BUREAU Amy Lane: Covers business issues at the Capitol, Those plans continue to grow in size and friends since they attended Cass Tech High eroded with resident movement to incredible telecommunications and utilities. (517) 371- School. Kilpatrick also appointed Beatty as his 5355, FAX (517) 371-2492, [email protected]. or scope, he said. downtown living spaces, let us all continue to 115 W. Allegan, Suite 220, Lansing 48933. “This is a new era in Detroit history,” said chief of staff when he became state House focus our attention on moving our great city minority leader in 1999. She was his campaign ADVERTISING Gilbert. “We believe the leadership in business, forward,” she said. manager during his campaigns for state House ADVERTISING DIRECTOR Marla Downs, (313) The charges leveled against Kilpatrick are 446-6032 or [email protected] government and the community will continue and the mayor’s office. to spend their valuable time and energy on the serious and the legal system will ultimately de- SALES INQUIRIES: (313) 446-6052; FAX (313) For further updates on this story, see 393-0997 mission at hand. We know we will be doing ex- cide how they are to be resolved, said Detroit ADVERTISING SALES Jeff Anderson, Terri www.crainsdetroit.com. Engstrom, Matthew J. Langan, Tamara Rokowski, actly that.” Renaissance President Doug Rothwell in a writ- Cathy Ross, Dale Smolinski A spokesman for the New York-based North- ten statement. WESTERN ACCOUNTS Ellen Mazen (Los Angeles) relations firm Bassett & Basset Inc. ern Group, which recently announced a $150 mil- “But they should not be allowed to slow the (323) 370-2477 Still, others preferred to keep themselves re- CLASSIFIED MANAGER Melissa McKay, (313) lion mixed-use development in downtown De- economic progress we are making, and (I) don’t 446-1692 troit called Cadillac Centre and soon will moved from the mayoral scandal. believe they will. CLASSIFIED ACCOUNT EXECUTIVE Greg Evangelista, 313-446-1655 purchase the two 22-story Lafayette Towers “Due to the personal nature of the issue, “Detroit Renaissance continues to be fully we’re really not going to comment on this,” said MARKETING DIRECTOR Michelle Minor apartment buildings in Detroit, said the compa- committed to growing Detroit and transform- EVENTS MANAGER Nicole Wiedling ny remains confident in Detroit and committed Jon Kreger, spokesman for the Detroit Regional ing the economy of our region and will contin- MARKETING ASSISTANT Jennifer Dunn to projects here. Chamber. ue to work with the mayor and his team to ac- MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea The Northern Group has “a long-term view Ilitch Holdings Inc. and Penske Corp. Chairman complish these goals,” Rothwell said. Beckham, YahNica Crawford and are interested in developing architectural- Roger Penske, who was drafted by Kilpatrick to Sherri Begin: (313) 446-1694, CIRCULATION Candice Yopp, Manager. ly significant works in urban areas. They are head up city improvements in preparation for [email protected] PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, moving full-steam ahead,” said Leland Bassett, Super Bowl XL in 2006 and continues those ef- Bob Ankeny, Daniel Duggan, Tom Henderson (313) 446-0301 chairman and CEO of the Detroit-based public forts as chair of the Downtown Detroit and Brent Snavely contributed to this report. SUBSCRIPTIONS (313) 446-0450, (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information Center at [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain Messages: Do text messages disappear? Sort of PRESIDENT Rance Crain SECRETARY Merrilee Crain ■ From Page 1 TREASURER Mary Kay Crain Executive Vice President/Operations William A. Morrow bor Networks Inc., which provides Internet secu- ployers monitor employees’ Web-site visits, need to delete sensitive information before they Group Vice President/Technology, Manufacturing, Circulation rity by monitoring Web sites for assaults by and 65 percent use software to block connec- turn their phones in or recycle them, and are Robert C. Adams hackers and helping fight them. tions to inappropriate sites. About half review willing to take the time. Vice President/Production & Manufacturing Even if private text messages are deleted, and retain e-mail messages, and a third track Federal authorities have prosecuted child mo- Dave Kamis Corporate Director/Circulation companies and governments may have con- keystrokes. lesters by getting search warrants to find text Patrick Sheposh tracts with communications providers spelling Henry Cendrowski, presi- messages stored in phones after they were sup- G.D. Crain Jr. Founder (1885-1973) out retention policies that require much longer dent of Bloomfield Hills-based posedly deleted. Mrs. G.D. Crain Jr. Chairman (1911-1996) storage, which was the case with the city of De- Cendrowski Corporate Advisors Cendrowski said he advises clients to be par- EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) troit’s contract with Mississippi-based SkyTel, L.L.C., which advises compa- ticularly careful not to text message or use 446-6000 whose BlackBerry-like SkyWriter was the tool of nies on technology issues and wireless e-mail to discuss such things as busi- Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out choice for the mayor and his chief of staff, fraud avoidance, said text- ness intelligence or trade secrets. Savvy snoops of state, $79 one year, $138 for two years. Christine Beatty. message security remains an with the right equipment within broadcast Outside U.S.A., add $48 per year to out-of-state Kilpatrick and Beatty are public figures with issue even after messages are range can easily capture those messages. rate for surface mail. Reprints: For inquiries call the reprints department fewer rights of privacy than most citizens. But deleted from the provider’s Kilpatrick wasn’t just at risk from future law- at: (800) 494-9051, Ext. 144 , or at once even private citizens start using company server. A text message sent by suits when he and Beatty traded messages about [email protected] equipment in their communications — whether cell phone, for example, re- their dalliances, he was at risk from political ene- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Cendrowski published weekly except for a double issue the it’s e-mail from the office computer or text mes- mains both in the phone’s mies and potential blackmailers. second week in August by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. sages from the company cell phone or BlackBer- memory card and the phone’s internal memory. “Wireless, in particular, can be eavesdropped Periodicals postage paid at Detroit, MI and ry — expectations of privacy disappear. Most people think pulling out the memory card on. Anyone with the appropriate software can additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, “There is no right of privacy then. An em- protects their sensitive information, but it does- watch messages come and go into your phone, Circulation Department, P.O. Box 07925, Detroit, MI ployer can do anything he wants,” said Malven, n’t. and malicious software can hijack your comput- 48207-9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2008 by Crain including monitoring e-mails and Internet use Phone manuals describe the complicated re- er,” said Nazario. “The equipment is available Communications Inc. All rights reserved. and getting copies of text messages. set commands to delete information from the off the shelf and the knowledge is out there.” Reproduction or use of editorial content in any manner without permission is strictly prohibited. In 2005, a survey by the American Management internal memory, but that assumes people Tom Henderson: (313) 446-0337, Ride-Along enclosed in Edition 3 Association showed that three-fourths of em- don’t lose their instruction manuals, know they [email protected] DETROIT BUSINESS MAIN 01-28-08 A 42 CDB 1/25/2008 4:58 PM Page 1

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Collins. Its Web site is www. sharpteeththebook.com. Watermark gets Barlow, who occasionally Compuware is contributes to the left-of- center Huffington Post blog, extension on will sign copies of the book at 7 p.m. Feb. 8 at the Birm- development changing … ingham Borders. And when not penning agreement nonrhyming poetic novels about shape-changers, or he $60 million Water- getting new Fords noticed, mark condominium but how? Barlow is busy trying to get T project proposed for a statue of Paper Lion au- n the quarterly earnings Detroit’s east riverfront by thor George Plimpton erected conference call for ana- Dave Bing’s Springarn Devel- The Watermark project is offering 112 condominiums from $350,000 to more than $1 million. I lysts Thursday after- in New York City as opment L.L.C. got a nine- noon, Detroit-based Com- founder of The Plimpton Pro- month extension Tuesday member. They replace the now available in the Detroit puware Corp.’s Chairman and ject (plimptonproject.org). on its development agree- retired Alfred Pease, who re- area. President Peter Karmanos Jr. ment deadline for provid- mains as executive adviser Frank Passalacqua, own- said that the company faced Bank awards bonuses ing the Detroit Economic to Rittenour. er of Carl’s Chop House in De- big changes, although he Growth Corp. proof of its fi- Doug DelGrosso to vice troit, has filed an applica- was lean on details. despite problems nancing commitments. president, TRW North Ameri- tion with the state for a Springarn was to have “As its CEO approaches The share price of Citizens ca Braking and Suspension, topless permit, The Detroit completed financing 65, the company is at a Republic Bancorp Inc. has Livonia. He resigned as News reported. arrangements by Dec. 22. president of Lear Corp. in An internal review of crossroads,” he said. “We taken a beating and earn- To date, Edward Tinsley, August. DelGrosso replaces Wayne County Airport Authori- will have a new release of ings have slid since its the business called Com- Bing Group vice president Ron Muckley, who left to ty senior-level travel ex- merger with Ann Arbor- puware 2.0. We can guaran- in charge of Springarn, said pursue other interests. penses shows no criminal based Republic Bancorp Inc. tee this is there are 20 “hard deals” in Rob Strasberg to chief or unethical behavior, au- in 2006 — much of it con- not a hand, with another 10 in se- creative officer, W.B. Doner thority CEO Lester Robin- reshuf- nected to problems in Re- rious discussions that & Co., Southfield, from vice son said Thursday. fling of public’s loan portfolio dis- should lead to sales soon. president and creative di- The Miami-based John deck low is executive creative di- covered after the sale. The Watermark, which rector, Crispin Porter+Bo- S. and James L. Knight Foun- chairs. rector for advertising Nonetheless, the Flint- opened a marketing center gusky, Miami. He replaces dation has approved nearly While we agency JWT, which based bank-holding on the site late last year, is John DeCerchio, who is now $7 million in grants to help are not is part of the Dear- company with 156 offering 112 condominiums in charge of “new ways of fund neighborhood revital- ready to born-based coali- branches in Michi- ranging from $350,000 to $1 communicating the ization in Detroit while commu- tion of agencies gan announced hefty million-plus for penthouse agency’s capabilities,” Don- continuing to support arts that service Ford nity the bonuses for several units in the tower. er said in a news release. and cultural organizations. Karmanos Motor Co. Tinsley said funding for details, officials in the 8-K it United Way for South- By night, he’s a the project comes from 10 you will be the second to filed with the U.S. Se- OTHER NEWS eastern Michigan on Thurs- know, after we tell employ- werewolf. Err … different lenders, including day introduced an early ed- curities and Exchange ees.” he writes about State of Michigan-approved The Laurel Park Place ucation initiative dubbed Commission on A memo by Karmanos cir- them. Barlow tax increment financing shopping center in Livonia “Operation ABC,” which culated to employees last Barlow has written a nov- Thursday. Those in- bonds, and loans from the said its Bombay Co., Disney hopes to ensure that every week was vague but said el in blank verse about cluded $146,192 for Cathleen Detroit Police & Fire Pension Store, Williams-Sonoma and child in Southeast Michi- part of the problem was that werewolves, Sharp Teeth. Nash, executive vice presi- Fund, Fifth Third Bank and Na- Talbots Kids locations are all gan is reading at grade lev- “Compuware really has no However, it’s not about the dent of regional banking; tional City Bank. closing, the Detroit Free el by the time he enters the image. ... An internal analy- sometimes savage, tooth- $116,247 for executive vice Press reported. third grade. Pfizer Inc. said Tuesday sis conducted in 2007 con- and-claw advertising world, president and CFO Charles The Detroit area un- Detroit Winter Blast it plans to donate up to $4.5 cluded: ‘Ask 100 employees which doesn’t need a full Christy; $84,209 for John employment rate for De- million in surplus lab about our corporate mission moon for its bloodletting — Schwab, executive vice presi- briefings set for Jan. 29 cember was 8 percent, up equipment to the Michigan and strategy and get 100 dif- such as BBDO’s staff purge a from 7.2 percent in Novem- dent and chief credit officer; Downtown Detroit busi- Innovation Equipment Depot. ferent answers.’ ” few weeks ago as client ber and unchanged from a and $71,179 for Clinton Samp- nesses will get a briefing The partnership, made up Karmanos said that the Chrysler L.L.C. tightened its son, executive vice president Tuesday on the fourth-an- of Pfizer, Ann Arbor Spark, year ago, according to data 2.0 version will reshape the belt. and regional chairman. nual Detroit Winter Blast, set MichBio and Michigan’s released Friday by the De- company culture, energize Instead, Barlow writes of Noticeably missing? A for Feb. 8-10. Smart Zones, will distrib- partment of Labor and employees to become third- a race of werewolves, who bonus for Chairman, Presi- Festival producer Jon ute the equipment to life Econommic Growth, while party ambassadors and can change form at will, dent and CEO William Hart- Witz and his staff will ex- science startups across the Ann Arbor area unemploy- make the company nimble, bolstering its ranks in Los ment was at 4.7 percent, un- man. Said the filing: “Mr. plain ways downtown busi- state, using $550,000 in agile, less complex and Angeles and bent on domi- nesses and their employees changed from November Hartman voluntarily for- funding from Michigan’s more focused. He promised nation. The central charac- can participate and have 21st Century Jobs Fund. and up from 4.4 percent a feited his bonus in light of more details in a few weeks. ter is a dogcatcher in love opportunities to draw festi- Pfizer also said it plans to year ago. the challenges facing the with a woman he doesn’t val visitors into stores and split $1.5 million worth of Statewide unemployment Ad exec wants book to be know is a werewolf, a fact company and the industry restaurant. research equipment, glass- in December was 7.6 per- a howling success she wants to keep secret. in order to align his inter- Information on street clo- ware and other lab supplies cent, up from 7.4 percent in The book, due out Tues- ests with the company’s sures and other logistics of among 35 middle schools, November and from 6.9 a During the day, Toby Bar- day, is published by Harper- shareholders.” the three-day event will be high schools, community year ago. available. colleges and universities A judge on Friday au- The two briefing ses- throughout the state. thorized Delphi Corp. to con- sions are set for Tuesday in Quicken Loans Inc. of tinue with an auction that the Compuware Building’s Livonia was named Tues- could result in the sale of We welcome your thoughtful commentary Public Lobby Gallery “A.” day as the second best com- its global bearings business One session is at 8 a.m., an- pany to work for in the U.S. to private equity firm Re- It was an interesting week for our Invariably, though, the Kilpatrick- other at 4:30 p.m. by Fortune magazine. Plante silience Capital Partners newsroom here at Crain’s. Not just Beatty scandal is the type of news For information, call Ani- & Moran P.L.L.C. of South- LLC., the Associated Press because of the big scandal that has bound to draw visitors to our Web site ta Preston at (313) 566-8265 field was ranked as the top reported. enveloped the mayor’s office, but who had never heard of Crain’s and or e-mail anita.preston accounting and consulting because the story broke at a time were more interested in the salacious @downtowndetroit.org. firm, placing 44th. when we’re just getting our feet wet details. BITUARIES Woodward Dream Cruise O with reader comments at our Web As we add opportunities for reader Inc. has named Farmington site, www.crainsdetroit.com. interaction with our publication, it’s ON THE MOVE Kimberly Cahill, former The scandal (if for some reason, you going to be a challenge to avoid the Hills-based public relations president of the State Bar of Harry Rittenour to presi- haven’t heard about it by now, flip to kind of vitriol we see on some other agency Tanner Friedman as Michigan, died of cancer dent, CEO and board mem- its executive director team Page 1 of this issue) was first reported Internet boards. Jan. 21. She was 47. by the Detroit Free Press and in no WEB WORLD We hope you’ll help us with your ber, Perceptron Inc., Ply- for the annual cruise. mouth, from vice president. Richard Durant, co- time became a national story. Kevin Hill thoughtful commentary. Feel free to AT&T Inc. on Tuesday We are, of course, chiefly concerned stop by our Publisher Mary Kramer’s Also, W. Richard Marz to announced that calling ser- founder of Durant & Durant about reporting how this all affects the blog at www.crainsdetroit.com/kramer and nonexecutive chairman, vices over its fiber-optic, In- PC in Detroit, died of heart business community of Southeast Michigan. speak your mind. from independent board ternet-based network are failure Jan. 17. He was 89. DBpageAD.qxd 1/25/2008 10:39 AM Page 1 DBpageAD.qxd 1/14/2008 3:41 PM Page 1

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