20100308-NEWS--0001-NAT-CCI-CD_-- 3/5/20105:30PMPage1 initial reportnotesthatto- Southfield breakfast atthe Workforce,” ataMarch17 “Women in2010:TheNew release thefirstreport, ing womenin2010. ploring severaltrendsaffect- four-part seriesofreportsex- Sphere Trending Waterford Township-based a researchpartnershipwith Page 13 in neighbor’s shadow, Hospital findsitcanoperate businesses, Page12 Largest black-owned with Sodecia,Page21 drives AZAutomotivedeal Rise ofglobalplatforms Bernstein andtheAGrace 1-888-CALL RICHARD? River bridgeprojects? End oftheroadforDetroit NEWSPAPER trends affectingwomen Inforum, Spheretostudy Health CareExtra Crain’s This JustIn Inside Page 3 Among otherthings,the The organizationsplanto Inforum Michigan See ThisJustIn,Page2 List . ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved to launcha www.crainsdetroit.com Vol.26,No.10 has formed Westin- veloper AlfredTaubmanandtalentagentAri Rakolta asaninvestorinadditiontomallde- Co. the projecthasdrawn construction jobs. pected tocreate3,000directjobsontopof500 185,000-square-foot soundstagebuildingex- square-foot buildingandnewconstructionofa Studios to beinterviewedfurtherforthisstory. ground verysoon,”saidNelson,whodeclined financed byApril30. whether amassivePontiacfilmprojectcanbe Linden Nelson’snextcareerjumpisridingon marketing executivetorealestateinvestor, Nelson Looming finance deadline‘noissueatall’ Nelson usedtocomplexdeals Pontiac filmstudioinvestor Kilpatrick Backed byHollywood-based Planned forPontiacisthe “It won’tbeanissueatall,wewillinthe Making acareermoveeightyearsagofrom parcels —isnotanissue. project —therenovationofa368,000- CRAIN’S DETROITBUSINESS B Y D ANIEL pool offormer by thelandwillgobacktoa looming deadline—where- Pontiac, Nelson,49,saysthe terpoint businesscampusin lion filmstudioontheCen- well-connected friends. es andfailuresacastof history ofbusinesssuccess- a groupofinvestors,boasts Now planninga$60mil- Nelson, thefrontmanfor D Walbridge UGGAN Raleigh Michigan Raleigh Studios ISTOCKPHOTO.COM critical oftheregion’stransportationplanningagency wrote lastweekafterquestionsaroseaboutcomments comments totheDetroitCityCouncilandinalettershe shift publicinrecent ma administration. jects favoredbytheOba- the high-speedrailpro- General Motors Arbor-Detroit route,to such asaproposedAnn projects inMichigan, that sheisshiftinghersupportfromcommuterrail Kilpatrick madethe CEO John Kilpatrick backshigh-speedrail overcommuter U.S. Rep.CarolynCheeksKilpatrickiswarning Switching tracks , MARCH 8–14,2010 responsibility foritsmaintenance. Michigan Studioscontrolof the propertyand ferred underalandcontract, givingRaleigh with GeneralMotorsonMay28. they’re ready,we’rereadytohelpthemout.” meeting ifneedbe,”Langhausersaid.“Once and “puttingallthepiecestogether.” Any delayisduetothecomplexityofdeal April 20meetingisalsoavailable,shesaid. land County. hauser, supervisoroffinancialservicesatOak- nomic DevelopmentCorp.,saidMaryLang- March 16agendafortheOaklandCountyEco- whether thebondmeasurewillbeon more approvalisneeded.Itremainstobeseen project planneededforthebonding,andone two months. three callseachfrom silent ontheirreasoning,declinedtoreturn Sorenson andPeterSmith,whohavebeen January. Thetwodissentingvotes,Rebecca by OaklandCountygovernmentalboards. cility bonds,whichrequireseveralapprovals $23 millionto$28inrecoveryzonefa- ma’s chiefofstaff,RahmEmanuel. Emanuel, brotherofPresidentBarackOba- “ CRAIN’S DETROITBUSINESS The fullpurchaseprice,never disclosedby Under thedeal,propertywouldbetrans- Looming asadeadlineisthedealworkedout “We toldthemthatwewillholdaspecial If thebondingisn’tonagendathen, The The measurewasapprovedina7-2vote Key tothe$60millionfinancingstructureis ready tohelpthemout. Once they’re ready, we’re B Y Oakland CountyCommission B ILL crainsdetroit.com/multimedia position andSEMCOG’s, and lettersstakeouther addresses theCityCouncil, Exchange ofviews: W BEXTRAS EB S Mary Langhauser, Oakland County HEA Crain’s See Nelson,Page24 Kilpatrick over thecourseof approved a ” and aletteritsentherdefendingitsperformance. housing andurbandevelopment. Committee anditssubcommitteeontransportation, cause shesitsonthepowerfulHouseAppropriations million sincethen.Hersupportisseenasimportantbe- marked $100millionfortherailprojectin2005and$6.5 for aneighthterminMichigan’s13thDistrict,ear- curate comments.” what theorganizationsaysare“disparagingandinac- Kilpatrick onFeb.26sayingittakes“greatexception”to federal transitdollarsfortheregion,faxedaletterto ments The Detroit-based Kilpatrick, aDetroitDemocratwhoiscampaigning , whichactsastherequiredagencytoprogram Medical Center chairman ofthe houseCoopers L.L.P. leader with D’Arcy, globalautomotive DTE EnergyCo. center. cial supporttoopenamultipurposeautism companies andfoundationstodrumupfinan- dren withautismaremakingtheroundsof turns 14laterthismonth. a high-functioningautismdisorder. Maribel daughter, Maribel,hasAsperger’ssyndrome, medical therapies. and thenfindingappropriateeducation ing theirproblemswhentheywereyoung in identifyinganddiagnos- have faceddifficultiesfirst have autisticoffspringand Michigan Make-A-Wish Foundationof worked for13yearsatthe liance. Lerchpreviously CEO oftheAutismAl- ters Lerchwashiredas the center. as thevehicletodevelop Autism AllianceofMichigan formed thenonprofit coordination ofservices Nonprofit formed, goalis autism center seek fundsfor 2 businessmen Dave Meador,CFOof Two Detroitbusinessmenwhohavechil- Autism, aspectrumdisorder, hindersa D’Arcy’s son,Jay,isnow27.Meador’s Meador andD’Arcyboth Last month,SusanFen- . CRAIN’S DETROITBUSINESS Southeast MichiganCouncilofGovern- B , andStephen Y Pricewater- J , have AY Detroit G and REENE See Autism,Page25 $2 acopy;$59year D’Arcy Meador See Rail,Page22 ® 20100308-NEWS--0002-NAT-CCI-CD_-- 3/5/2010 5:16 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 8, 2010

THIS JUST IN The way it was: 1991 Superior Capital Partners MCC hosts economic event Marcus & Millichap brokers form completes adhesive acquisition Macomb Community College will new real estate firm ■ Throughout our 25th-anniversary host a luncheon to discuss what From Page 1 Detroit-based Superior Capital Five brokers from the South- year, Crain’s will use this space metro Detroit can learn from in- Partners L.L.C. said Friday that it to look at interesting items from vestments made by Turin, Italy, to field office of Marcus & Millichap day’s workforce is the first in his- acquired the assets of Fort Worth, past issues. spur an economic turnaround fol- have left and formed a new local tory to be defined by the wants, Texas-based construction and in- lowing the significant decline of commercial real estate firm. needs, and work styles of four frastructure adhesives manufac- Turin-based Fiat S.p.A.. Doug Passon and Rob Bender are generations of women. A funda- turer Q’SO Inc. The event will be held on March the managing directors of Sperry Inforum and Sphere plan to re- Superior Capital formed its “ 22 from 11:30 a.m. to 1 p.m. at the Van Ness | Fortis Net Lease. lease three additional reports mental premise third platform company, Edge Ad- Lorenzo Cultural Center at The firm officially opened its over the course of this year look- hesives Holdings Inc., to complete M.C.C.’s Center Campus, Clinton Farmington Hills office at the end ing more closely at female con- of the adminis- the deal. Terms of the deal were Township. of January, Passon said. Also sumers, the characteristics of to- not disclosed, but Superior expects The keynote address for the leaving Marcus & Millichap were day’s new mothers and how tration is that Michigan is an Edge to generate more than event will be presented by Jennifer Dan Poris, Marv DeLaura and Bryan women are changing the home- $15 million in revenue this year. overtaxed state. Bradley, senior research associate Bender. owner marketplace. — Ryan Beene Tickets for the March 17 event ” of the metropolitan policy pro- The firm is a new franchise of are $45 for members and $60 for John Engler, gram for the Brookings Institution. Irvine, Calif.-based Sperry Van nonmembers. See www.inforum- State wireless association formed Tickets are $50, with proceeds Ness. Passon said the team will michigan.org. governor benefiting the Macomb Presidential specialize on the sale of fully Members of Michigan’s wireless — Sherri Welch From a Jan. 21, 1991, interview Scholarship Fund. See www.lorenzo leased buildings locally and na- with Crain’s after the newly elected industry have formed a new culturalcenter.com. tionwide. governor was named 1990 statewide group, the Michigan Wire- — Dustin Walsh — Daniel Duggan Stem Cell Summit gains sponsor Newsmaker of the Year. Tax cuts less Association. The World Stem Cell Summit, were a hallmark of Engler’s 1991- Mike Lord, president of the asso- which will be held in Detroit Oct. 2002 tenure. ciation and regional vice presi- CORRECTION dent of network operations for 4-6, has gained an additional edu- Ⅲ A story on Page 1 of the March 1 issue incorrectly listed members of cational sponsor with the fledg- mit, said Bernard Siegal, summit MetroPCS Communications Inc., said the state wireless industy has not the Michigan Future Schools governing council and incorrectly stated ling Alliance for Regenerative Medi- co-chairman. they would help to raise additional funds to support more college cine. The Genetics Policy Institute is had a cohesive voice. The Livonia- based group plans to work with preparatory high schools for Detroit students. Only Michigan Future Formed in September 2009, 45- producing the summit. Organiz- Inc. President Lou Glazer and funders of the project — particularly member ARM also will hold its ing sponsors are the University of communities to build relation- ships, be a resource to members, Chairwoman Tonya Allen, vice president of program, Skillman Founda- general and executive committee Michigan, Michigan State University, tion — will work to raise additional funds. meeting during the event, said Wayne State University, University and be involved with legislation. The association launches with The governing council members, who are individuals not organiza- Morrie Ruffin, ARM managing Research Corridor and the Michigan tions, are: Allen; Sharlonda Buckman, executive director, Detroit Parent partner. He said 75 to 100 biotech- Department of Economic Develop- 20 members such as carriers, tow- er companies, broadband Network; David Campbell, president, McGregor Fund; Eddie Green, direc- nology companies, patient ment. Oakland University also is an tor, Horizons-Upward Bound program, Cranbrook Educational Communi- groups, drug companies and oth- educational sponsor. providers, equipment vendors, construction companies, site ac- ty; Wendy Jackson, program officer, Kresge Foundation; Carmen N’Namdi, er organizations are expected to See www.worldstemcell founder, Nataki Talibah Schoolhouse; Mike Schmidt, director of education join ARM by this fall. About 1,200 summit.com. quisition firms and legal interests. — Amy Lane and community development, Ford Motor Co. Fund; and Greg Taylor, vice attendees are expected at the sum- — Jay Greene president for programs, W.K. Kellogg Foundation. Got Ethos? Get Answers to Your Ethical Issues

Learn the best ways to shape 4th Annual EMU Ethos Week ethical behavior by Keynote Speaker March 15-19 Robert Bobb, Emergency Financial Capstone Lunch March 19: Manager for Detroit Public Schools, EMU Student Center and business and education leaders $35 general public who will present their views on $5 EMU students various ethical issues.

This lecture is part of the EMU College of Business Ethos Week. The program, the first of its kind in the nation, emphasizes ethics in business and education and is committed to perfecting responsible, ethical professionals to serve business and the wider world. Robert Bobb, For ticket information, Keynote Speaker call 734.487.2282 or visit cob.emich.edu 20100308-NEWS--0003-NAT-CCI-CD_-- 3/5/2010 5:53 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 3 Could both bridge Jobs/Economy projects tumble down?

Richard Bernstein joins three other One plan rejected, the other mired in politics candidates for state attorney general: fellow Democrat David BY BILL SHEA Gov. Jennifer Granholm’s office Leyton and Republicans Bill CRAIN’S DETROIT BUSINESS reiterated that she supports both Medical manufacturing heals Schuette and Michael Bishop. It’s not about bridge projects, but noted that the Metro Detroit could soon go “ Coast Guard decision makes it ailing budgets, Page 9. from two Detroit River bridge pro- lawsuits or all the more important that jects to none, a potential traffic lawmakers approve MDOT’s Bernstein: AG and logistics migraine that’s con- profits, it’s participation in the Detroit Riv- sidered unlikely but has those in- er International Crossing project. Company index volved warning that the region is about the “The decision by the U.S. poised to lose jobs if they fail. Coast Guard elevates the im- These organizations appear in this week’s Crain’s post would be Citing the ongoing litigation jobs either of portance of expeditiously ad- Detroit Business: linked to the project, the U.S. Coast vancing the DRIC and the cre- Alix Partners ...... 24 Guard last week formally terminat- these projects ation of 10,000 jobs. The DRIC Autism Alliance of Michigan ...... 1 ed the Detroit International Bridge platform for will create has all of the necessary ap- Automation Alley ...... 11 Co.’s application request for a sec- provals and only awaits action AZ Automotive ...... 21 ond Ambassador Bridge span, and for Detroiters. by the Michigan Legislature to cre- Barbara Ann Karmanos Cancer Institute ...... 17 the Legislature in June will decide ate 10,000 jobs,” wrote Megan ” Blue Cross Blue Shield of Michigan ...... 16 ‘real battles’ if the Michigan Department of Trans- Brown, deputy press secretary to Mayor Dave Bing Botsford Hospital ...... 14 portation can proceed with its por- Granholm, in an e-mail to Crain’s. Center for Healthcare Research & Transformation . . 8 tion of a plan to jointly build a and fulfilling our long-term obliga- A 2008 online FAQ about the Comerica Bank ...... 11 Rivals say lawyer bridge with Canada — a proposal tion to the border,” bridge compa- DRIC study offers a dire warning Concentra ...... 15 that has fueled budget skirmishes ny President Dan Stamper said in that if no new border crossings are lacks experience the past two years in Lansing. the statement. built: “The economic conse- Diadem Precision Technology ...... 9 The Ambassador Bridge compa- Both bridge projects both have quences for Michigan and Ontario Detroit Economic Club ...... 4 BY CHAD HALCOM ny said in a statement Friday af- been billed as job-creators. are significant — as many as 42,000 Detroit Hope Hospital ...... 14 CRAIN’S DETROIT BUSINESS ternoon that it remains “fully com- Detroit Mayor Dave Bing’s of- lost jobs over the next 30 years Detroit International Bridge ...... 3 mitted” to the second span project, fice said he’s not met recently with (26,000 in Michigan and 16,000 in Detroit Regional Chamber ...... 25 Richard Bernstein believes estimated at $1 billion. privately owned Ambassador Ontario). The outlook is even DocNow Urgent Care ...... 15 he can take the state’s top law “After securing some 95 percent Bridge company’s management, worse for the U.S. and Canada — Doctors Hospital of Michigan ...... 14 enforcement position in direc- of all necessary property rights — and issued a short statement on almost 100,000 total lost jobs by Henry Ford Health System ...... 18 tions it has yet to go. in addition to having completed the situation: “It’s not about law- 2035 if this study were stopped and J.C. Gibbons Manufacturing ...... 10 But political opponents and the necessary plazas and inspec- suits or profits, it’s about the jobs a new bridge were not built.” Lakes Surgery Center ...... 14 professional colleagues said tion areas — we feel no farther either of these projects will create Meadowbrook Insurance Group ...... 3 Bernstein’s bid to become attor- away from building a second span for Detroiters.” See Bridges, Page 25 ney general, announced last Meadowbrook Medical Center ...... 14 week, could be vulnerable on Medical Main Street ...... 9 questions of experience — as a Michigan Association of Health Plans ...... 8 trial attorney representing Michigan Cover the Uninsured Network ...... 8 plaintiffs in a firm reputed in Michigan Department of Community Health ...... 7 the legal community to refer Meadowbrook acquisition drove growth Michigan International Speedway ...... 7 more cases to other firms than Michigan Manufacturing Technology Center ...... 9 it tries. Raleigh Michigan Studios ...... 1 At 35, Bernstein — attorney Operating income jumps nearly 38 percent for year Michigan Surgery Specialists ...... 14 at Farmington Hills-based The Michigan Urgent Care Centers ...... 15 BY JAY GREENE somewhat now, and there are Southfield office. The company Sam Bernstein Law Firm P.L.L.C. Muter and Associates ...... 9 and chairman of the Wayne CRAIN’S DETROIT BUSINESS some increases in prices,” Cubbin now employs 918, with 244 in said. Michigan. Oakland Regional Hospital ...... 13 State University board of gover- Omega Plastics ...... 9 nors — is the youngest so far Robert Cubbin, CEO of South- For the 12 months of 2009, Mead- Malone said the acquisition of Palace Sports & Entertainment ...... 7 among four candidates. field-based Meadowbrook Insurance owbrook net operating income in- ProCentury has stimulated rev- Plex Systems ...... 10 Also seeking the office in No- Group (NYSE: MIG), said a 37.9 per- creased 37.9 percent to $53.5 mil- enue growth that will continue to Premiere Surgery Center of Michigan ...... 14 vember is fellow Democrat and cent increase in 2009 operating in- lion, or 93 cents per share, from build as premiums rise in the in- Genesee County Prosecutor come over 2008 $38.8 million, or 86 cents per share, surance market. Providence Hospital ...... 13 David Leyton. Bill Schuette, se- is a sign that the in 2008. “The intent of the merger was Skidmore Studio ...... 4 nior attorney at the Lansing of- 2008 acquisition Fourth quarter operating in- revenue generating. The two com- Southeast Michigan Council of Governments...... 1 fice of Warner Norcross & Judd of ProCentury come increased 7.9 percent to $13.6 panies’ businesses were not the Spectrum Health ...... 16 L.L.P. and former Michigan Corp. of Ohio has million, or 24 cents per share, from same,” Malone said. Technical Writing Solutions ...... 19 Court of Appeals judge, is vying created growth $12.6 million, or 21 cents per share, ProCentury writes excess sur- Terumo Cardiovascular Systems ...... 10 beyond original for a Republican nomination to for the same period in 2008. plus policies for companies that in- Terumo Heart ...... 10 expectations. Beth Malone, an analyst with clude day care centers, apartment the office against state Senate The Sam Bernstein Law Firm ...... 3 “We were pre- Wunderlich Securities in Memphis, buildings, garages, fitness centers, Majority Leader Michael Bish- United Way for Southeastern Michigan ...... 23 dicting growth said Meadowbrook prices its prod- marinas, retail stores and special- op, R-Rochester. State party Wayne State University ...... 15 of 20 percent (in ucts to achieve profitability and event providers. conventions to select the nomi- Cubbin nees will be in August. gross written not as much to gain market share “Standard carriers typically Its ubiquitous advertising premium)” before the merger, in a soft or competitive and lower- don’t write this kind of risk, but in Department index and the “1-888-CALL-SAM” Cubbin said. “In reality, it is priced market. a soft market there is lots of com- tagline makes the Bernstein greater than that. With the merg- “They performed better than we petition and ProCentury has con- BANKRUPTCIES ...... 7 law firm — founded and run by er, we are up 50 percent in 2009 had anticipated, which is reflec- tracted from the market in many CALENDAR ...... 20 over 2008.” tive of the conservatism (of man- areas,” Malone said. Richard’s father, Sam — per- CAPITOL BRIEFINGS...... 7 Gross written premiums grew to agement) that the company ap- “When pricing starts to harden haps the best-known plaintiffs’ CAREERWORKS ...... 19 firm in the state. However, $688.7 million in fiscal 2009, ended proaches the marketplace,” (rise),” ProCentury will contribute CLASSIFIED ADS ...... 17 Richard Bernstein notes that Dec. 31, from $457.7 million in 2008. Malone said. more to Meadowbrook’s bottom “Last year was a tough market Since the acquisition of ProCen- line, she said. KEITH CRAIN...... 6 where (premium) prices were tury, Cubbin said, Meadowbrook LETTERS...... 6 See Bernstein, Page 23 dropping. They have moderated has added 15 employees in its See Meadowbrook, Page 25 OPINION ...... 6 PEOPLE ...... 19 Where were you in 1985? Estate tax law webinar RUMBLINGS ...... 26 Tell us what you were doing 25 years ago. We This Wednesday, talk to experts. Sign up THIS WEEK @ STAGE TWO STRATEGIES ...... 4 may publish your story in Crain’s May 3 for the Crain’s Tax Estate Planning WWW.CRAINSDETROIT.COM anniversary issue. E-mail [email protected]. Webinar: crainsdetroit.com/register. WEEK ON THE WEB ...... 26 20100308-NEWS--0004-NAT-CCI-CD_-- 3/5/2010 2:49 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 8, 2010

StageTwo Strategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly $1 million-$50 million and about 10- For more second-stage coverage, go feature that analyzes a recent 100 employees. Such firms provided to crainsdetroit.com/secondstage. business decision by a second-stage 35.7 percent of Michigan jobs in To sign up for the twice-monthly e- company. These companies are led 2007, more than any other company newsletter, go to crainsdetroit.com by growth-focused entrepreneurs with category. Crain’s is focusing on /getemail. The Second Stage print market-ready products or services. these poised-for-growth companies section will appear in Crain’s on the They generally have revenue of because of their enormous impact. third Monday of each month.

SKIDMORE STUDIO Location: Royal Oak could handle all their needs. name is associated with.” Description: Skidmore Studio is a Solution: Last winter, Skidmore Skidmore also risked spending creative services firm specializ- sent two artists to the College for the time and money to train the ing in marketing needs, including Creative Studies for motion graph- artists only to have clients stick Web and graphic design, illustra- ics training. with an established motion graph- tion and social media. Clients in- Smith chose to retrain existing ics firm. clude ArtServe Michigan, Detroit employees because “you can Smith estimates that losing two Medical Center, Ann Arbor District Li- teach a technical skill, but you of his artists to class work and the brary, Detroit Institute of Arts and can’t teach creative talent.” purchase of new equipment and Quicken Loans. “I didn’t want software cost him around Top executive: Tim Smith. For- to bring on $200,000. merly the company’s president, someone new “If we’re going to be viable, we Smith acquired the majority and have to let had to address this problem and stake in Skidmore last November go of a really take the risk of investment,” from second-generation owner creative per- Smith said. Mae Skidmore. son,” Smith Expert opinion: Craig Steen, for- Founded: 1959. said. “We’re a mer president and current men- Employees: 22. small company, toring chairman for the Detroit Revenue: $3.8 million in 2009, and I’d rather chapter of American Institute of $4.2 projected for 2010. invest in the Graphic Arts, a professional associ- Smith Problem to be solved: Skidmore people I have.” ation for design, and partner at We are pleased specialized in traditional market- The two Skidmore employees Royal Oak-based Defrost Design, ing and design services, but completed their course work in said that motion graphics are a to announce clients were increasingly inter- June 2009 and the company began growing part of field, and design- ested in motion graphics, and offering motion graphics services ers with those skills are in high Smith’s artists were not trained immediately after. demand. Although Steen’s studio Robert Levy in the field. Without that service, Smith said he hopes the skills hires freelancers to handle mo- Senior Vice President–Investments Skidmore was forced to send will lead to new clients, but it’s tion graphics, the more a studio clients to other firms. been great to offer existing clients can do in-house, the better. “We were losing that busi- a new service. It’s tough, though, to branch out PGPVS'BSNJOHUPO)JMMTPGÏDFIBTCFFOOBNFEUPUIF ness,” Smith said. “We also felt Risks: “There was an assump- without compromising quality. President’s Council that the other firms weren’t shar- tion that the talented artist side of “There are definitely studios out ing our artistic vision.” our employees could make the there with great talent across the Design services are always leap to the program side,” Smith board,” he said. “But it’s less com- IPOPSJOHIJNBTPOFPGPVSUPQ'JOBODJBM"EWJTPST evolving, Smith said, but if Skid- said. “We worried that they mon to have people that can do all more didn’t catch up, it risked los- wouldn’t get it and be capable of of those things well.” /PSUIXFTUFSO)JHIXBZ 4VJUF ing clients to competitors who the level of work Skidmore’s — Dustin Walsh 'BSNJOHUPO)JMMT .*  If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entre- SPCFSUMFWZ!VCTDPN preneurship editor at Crain’s Detroit Business, at [email protected].

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www.ubs.com/financialservicesinc Econ Club plans to build on 75th anniversary 6#4'JOBODJBM4FSWJDFT*ODJTBTVCTJEJBSZPG6#4"(h6#4'JOBODJBM4FSWJDFT*OD"MMSJHIUT SFTFSWFE.FNCFS4*1$@"E@Y@%5@3BZ3 BY NANCY KAFFER financial stress — ending fiscal said. “We’re assembling a 75th-an- CRAIN’S DETROIT BUSINESS 2009 with a $400,000 revenue short- niversary commemorative book ... fall, including a roughly 20 percent It looks at us today, and where do The Detroit Economic Club is decline in investment income. we go from here.” preparing to celebrate its 75th an- Chappell couldn’t provide a spe- The book’s preorder price is $25; niversary with events designed to cific number but said that the club once it’s released, the book will shore up its finances and renew is “well toward” closing the gap cost $35 and be sold online and at member and re- and “a little ahead” of the fiscal club meetings. gional commit- year’s budget. She said the club As the economic climate has hit ment to the or- will finish the current fiscal year nonprofits, many have responded ganization. at break-even or better status. by becoming more entrepreneur- “Our objec- The anniversary plans include: ial, said Donna Murray, director of tive or goal is to A Web-based, seven-level do- the Metro Detroit Partnership, which really engage nation program. is the Southeast Michigan office of . our member- An anniversary gala May 20 the Lansing-based Michigan Non- Go Green ship,” said Beth at the Westin Book Cadillac in De- profit Association. Chappell, club troit. The gala — tickets are $250 — Nonprofits, she said, have strug- president and includes a strolling dinner, a pro- gled to find ways to do more with . Chappell Green CEO. “This is gram on the club’s past and future less and keep programming and the first time ever that we’re followed by a party. services intact. Learn how you can reduce building reaching out to our members in A membership drive that “There’s more entrepreneurial RSHUDWLQJFRVWVREWDLQ¿QDQFLQJ the hope that they will invest in Chappell hopes will increase club spirit now,” Murray said. “Non- IRUJUHHQUHWUR¿WVDQGLPSURYH the future of the Detroit Economic membership by 10 percent. A profits are working at doing things your workplace at our Club.” member who successfully refers a differently … becoming more en- The Detroit institution’s anniver- friend can win a Starbucks gift card trepreneurial in ways that aug- Project Green Institute sary follows one of the most tumul- and the chance to be included in ment income. in Ann Arbor or online at JSVig.com. tuous years in the club’s history. later drawings for prizes. “Many are doing a deeper dive In 2009, the club hosted The Na- A commemorative book, to look at expenses and finding tional Summit, a three-day confer- available in September, that traces ways to work with another non- Contact Joe Vig to ence that brought about 90 C-level the history of the Econ Club. profit in terms of streamlining ex- schedule a consultation. speakers and roughly 4,000 atten- “We have 68 boxes of history at penses but also continuing to offer [email protected] 313.477.1060 dees to Detroit to discuss a nation- the Detroit Public Library, and we quality programming.” www.jsvig.com al economic policy agenda. have a great team of folks culling Nancy Kaffer: (313) 446-0412, But the summit left the club in through the archives,” Chappell [email protected] DBpageAD.qxd 2/17/2010 12:32 PM Page 1 20100308-NEWS--0006-NAT-CCI-CD_-- 3/5/2010 4:42 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS March 8, 2010 OPINION LETTERS State should take hard Stem cell language needs refining Editor: WSU president’s code I appreciate the passion and ad- Crain’s Detroit Business welcomes letters to the editor. vocacy of Mr. and Mrs. Edsel Ford All letters will be considered for ‘smacks of tyranny’ look at tax incentives and others in working to find publication, provided they are treatments for diabetes, cardiovas- Editor: signed and do not defame cular and neurological diseases. I I am writing as a member of the he debate over tax incentives rages on — the latest sal- individuals or organizations. vo coming in a report released this week by the Ander- share this passion. As a practicing Wayne State University faculty. Letters may be edited for length Mary Kramer’s chiding of the son Economic Group L.L.C. physician, I have spent 25 years and clarity. T caring for patients suffering from presidents of the academic union Write: Editor, Crain’s Detroit The report concludes that renaissance zones and the much- these and other afflictions. For and senate for their strong cri- Business, 1155 Gratiot Ave., debated film industry incentives produce fewer jobs and less five years I delivered home care to tiques of the behavior of President Detroit, MI 48207-2997. tax revenue than alternative policies, such as an overall lower the terminally ill. Jay Noren suggests that she is mis- E-mail: [email protected] tax rate, would generate. And, like them, I also believe informed about the seriousness of the situation. (Public discourse It draws the same conclusion about Michigan Economic that pancreatic stem cell research and other adult stem cell research know which embryos may be used should be a civil action,” Jan. 18). Growth Authority incentives, although it says recent changes may lead to breakthrough cures for research. The research com- Among other noxious measures, made to the program may produce better results. for various diseases. munity has been invited repeated- the president has proposed a code Effective incentives: Industrial property tax abatements un- I also agree that the voters have ly to submit language clarifying of ethics that was sent to the Acad- der Public Act 198 used to address cost disadvantages for manu- spoken with the adoption of 2008’s this and other phrases, but so far emic Senate for consideration. The Senate president forwarded it to facturers, and obsolete property rehabilitation tax incentives. Proposal 2, and I respect their deci- has declined to do so. sion. My colleagues and I on the Additionally, the constitution- the faculty and academic staff for Brownfield redevelopment incentives and Commercial Re- Senate Health Policy Committee, ally adopted language provided comments. The more than one habilitation Act abatements were found to produce small for which I serve as chairman, that consent be received from po- hundred comments were over- amounts of job growth but little, if any, new tax revenue. have no interest in and do not seek tential donors. This seeks to clari- whelmingly negative, one even cit- The report was commissioned by the Michigan Education to “disregard the vote of the peo- fy when consent is obtained and ing similarities between the pro- posed code and the Alien and Association and National Education Association. ple.” who is responsible for keeping We do, however, have a consti- records. Again, the research com- Sedition Acts of 1798, under which Some may say — correctly — that the MEA and NEA have a tutional duty to implement laws munity has been invited to sub- opposition newspaper editors vested interest in maximizing tax revenue with the goal of boost- that protect the health of the pub- mit input. were jailed for criticizing govern- ing school funding. However, all taxpayers have a stake in tax lic and address questions raised by The legislation creates a nom- ment. policy, especially as some particularly onerous taxes linger, the new technological frontiers. inal one-page annual reporting re- The elected Faculty Council of MBT surcharge being the most conspicuous among them. Creating a sensible framework quirement for research facilities the College of Liberal Arts and Sci- for embryonic stem cell research and infertility clinics. This report ences unanimously rejected the The report doesn’t give specific suggestions for what state pol- in the state of Michigan under the does not identify individual code, citing “issues of free speech, icy should be, but does lay out some considerations that include: auspices of the constitutional donors or researchers but asks for academic freedom, and a lack of Effective programs address cost disadvantages and sup- amendment is the ultimate goal of an aggregate total of the embryos provisions for due process.” port creation of long-lasting business activity. the legislative package. used and their disposition. The union is presently demand- Some ineffective programs subsidize current operations To that end, I would encourage Entities that already must file a ing that the code be bargained, anyone who has an interest to read report under federal law would be since it affects the terms of em- that are unlikely to be long-term. Others may simply need to for themselves the stem cell re- allowed to file a copy of their feder- ployment of its members. It is a se- be refocused on their original mission. search implementation and trans- al reports in lieu of the separate re- rious matter indeed when one The report, which can be found at www.mea.org/investing, parency legislation that was adopt- port to the state. could lose one’s job for criticizing bears a close look by the MEDC, the governor’s office and legis- ed by my committee with Finally, it creates penalties the leadership of the university or lators. Even if the Granholm administration lurches through bipartisan support. Copies are for a violation of the provisions set blowing the whistle on unethical available by contacting my office out in Proposal 2, as the proposal practices within the university. the rest of the year without having negotiated significant at (517) 373-0793. was silent on this matter. These It is tyrannical for a university changes in how the state taxes and spends, the problem is one Despite the misinformation that penalties are consistent with, or president to propose that he have the next governor will find hard to avoid. is circulating, individuals who less than, the penalties adopted in the power to crush his critics in A rational evaluation of the budget and tax policy should take the time to review for them- Massachusetts and California. the manner proposed under his include a reasoned look at incentives. selves the proposed legislation Proponents of embryonic stem code, and it is an attempt to put a will see that it does not disregard cell research or any other constitu- pall on vigorous, spirited debate in the will of the people, but instead tional measures must understand a climate of intellectual freedom. achieves three important goals: that it is routine for the Legisla- My mother was an Auschwitz Fund Pure Michigan campaign It creates definitions and ture to enact implementation lan- inmate. I grew up in Communist standards for some of the ambigu- guage following adoption of a con- Romania, where my father, a uni- We feel compelled to once again advocate for a bill that ous terms contained within Pro- stitutional amendment; we are versity professor, was imprisoned would earmark $9.5 million in state use taxes for Pure Michi- posal 2. Under Proposal 2, embryos simply fulfilling our duty. for making two jokes against the gan, the state’s tourism marketing campaign. Funding cleared may be used for research that are If people have specific recom- government; they cost him his life. the Senate last week, but still faces House consideration. in excess of those needed for infer- mendations to make regarding the President Noren’s code smacks tility treatment or are otherwise proposed legislation, they can e- If approved, the money would bring total funding to of the tyranny I have known else- “not suitable for implantation.” mail them to me at $14.9 million, half of what was available a year ago. where and I did not expect to en- Defining the phrase “not suit- [email protected]. counter in this country, much less The campaign, which has been both effective for the state able for implantation” is neces- I welcome their suggestions. a public university. and an award-winner for creator McCann-Erickson, deserves sary so that the public, potential Tom George, M.D. Anca Vlasopolos funding. donors and researchers alike will State Senator, R-Kalamazoo Grosse Pointe KEITH CRAIN: It is a global, not just U.S., recession Last week, along with many seems to be seeing a ro- pound. aircraft overseas, you’d pick one never very much out of touch. folks from Detroit, I had a quick bust recovery from the The problems of coun- point of view, and if you’re wor- With three or four U.S.-based trip to Europe with stops in Eng- financial crisis of last tries like Turkey and ried about selling our massive U.S. news organizations offering the land and Switzerland. year. Many of the coun- Greece appear to be di- debt, then you’d support the other news with a U.S. point of view, Every year thousands of execu- tries have put in place minishing the strength point of view. you’re never too far away from tives head for Geneva for the mo- quite a few financial of the euro against other Meanwhile, in spite of a stronger home. Add the ever-present e-mails tor show, which is the only major stimuli that simply currencies. dollar, it’s certainly not cheap to that are being transmitted to your annual motor show in Europe. don’t seem to be work- Meanwhile, we can travel in Europe. Whether our dol- BlackBerry, you might never real- I was quite surprised at how the ing very well, if at all. argue that a stronger lar is weak or strong, it’s a very ex- ize that you happen to be a few thou- economy was just as bad in parts The real irony is that dollar will harm our pensive proposition. sand miles from your home base. of Europe as the United States. as the financial world economy and make it It’s always interesting to notice The business world is working We seem to assume that it sim- looks around for stable more difficult to see our the changes, and I can’t help but no- 24 hours a day. Business is always ply can’t get any worse than the currency where they can put their products outside of the U.S. tice that the international business open somewhere. The decisions U.S., much less in Detroit. Well, it money, sooner or later, they seem Or a stronger dollar will make community seems to spend more being made are having an impact looks like misery loves company. to always head back to the U.S. dol- the U.S. economy stronger and and more time in the English lan- on our business. There was quite a bit of pes- lar, which lately is strengthening much better in the long run. guage. Not to mention that when The world is moving at a rapid simism in Europe, and no one against the euro and the English I guess if you’re selling Boeing you are traveling overseas, you’re pace. And it’s not slowing down. 20100308-NEWS--0007-NAT-CCI-CD_-- 3/5/2010 3:30 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 7 Outdoor venues among smoking ban questions LANSING — Ques- Health is looking into proved petition forms for two Short takes ment of Civil Rights, succeeding tions are firing up over golf courses and “a lot of groups seeking casinos to move Ⅲ Kelvin Scott, who died Feb. 20. Michigan’s new work- Capitol those type of questions, forward with drives to put the A Senate vote to rescind a Ⅲ As expected, House Speaker place smoking ban, as its because we want to be measures on the November ballot. 3 percent raise for the state’s Andy Dillon, D-Redford, announced May 1 effective date ap- Briefings very clear.” One measure, proposed by Hazel unionized workers fell four votes his candidacy for governor last proaches. He said other ques- Park-based Racing to Save Michigan, short of the required two-thirds week. Former Genesee County Take outdoor venues. tions being asked in- would allow the Michigan Gaming majority on Wednesday. Treasurer Dan Kildee dropped out Public Act 188, passed by clude if all hotel rooms Control Board to issue licenses to up Ⅲ Gov. Jennifer Granholm issued of the race, leaving Lansing Mayor the Legislature in De- need to be nonsmoking to eight new Michigan casinos, five an executive order to consolidate Virg Bernero and state Rep. Alma cember, bans smoking in (they do) and if the law of which would be at horse race- 10 public finance authorities run Wheeler Smith to vie with Dillon for food-service establish- sets a minimum outside tracks that in 2009 conducted live by state government into one new the Democratic nomination. ments and their outdoor distance smokers must racing with pari-mutuel wagering. entity, the Michigan Finance Authori- Ⅲ Former Arkansas governor patios where food and be from a building to The second group, called Michi- ty, which would be chaired by the and 2008 presidential candidate drink is served, public Amy Lane smoke (it doesn’t). gan Is Yours, proposes up to seven state treasurer and have six other Mike Huckabee has endorsed Re- places and private em- casinos. Locations would be at De- members appointed by Granholm. publican Attorney General Mike ployment. The law’s impact will be Casino petition forms approved troit Metropolitan Airport and in De- Ⅲ Dan Krichbaum, Granholm’s Cox in his bid for governor. broadly felt, particularly in indoor troit, Romulus, Lansing, Flint, COO, has been tapped to be inter- Amy Lane: (517) 371-5355, workplaces. But there are differ- The Board of State Canvassers ap- Benton Harbor and Muskegon. im director of the Michigan Depart- [email protected] ing views on how the law will af- fect some outdoor locations where food and beverages are consumed. “We’ve researched the law, and our interpretation is that outdoor venues, that the law doesn’t really affect them,” said Jeff Corey, direc- ’s a tor of public relations at Auburn ere he Hills-based Palace Sports & Enter- h a tainment Inc., which operates DTE t l Energy Music Theatre and Meadow t Brook Music Festival. w r al h Palace Sports has not allowed o fo l o y smoking in the covered, open-air f Pl pavilions at Meadow Brook and N us DTE for several years, but as of u now still plans to allow smoking in s! lawn seating, he said. But, “we’ll listen to our patrons, and if there’s a groundswell to make any other changes, that’s Introducing exciting new health certainly something we’ll look at.” However, Michigan International Speedway in Brooklyn has an- coverage for individuals and families. nounced its grandstands would be among the smoke-free partly be- cause patrons bring food and cool- Great news! HealthPlus now offers individual and family health plans that combine affordable, ers, so the law could apply, said low monthly premiums with access to preventive care and coverage should you need more Sammie Lukaskiewicz, director of communications. intensive medical care. HealthPlus Signature Plans are perfect for people age 18-64 who are At the Michigan Department of Community Health, which will en- looking to purchase health benefit coverage for themselves or their family. force the new law and can also del- egate to local health departments, Enrolling is easy! the extent to which outdoor venues are affected is just “one of the things we are looking into,” Visit us online to customize a Signature PPO health plan, review benefits and determine a said public information officer James McCurtis Jr. monthly premium that’s just right for you. Another question that’s arisen is if the smoking ban extends Or for personal assistance, call to speak with one of our friendly representatives who will answer around food and beverage carts any questions you have. that travel golf courses. McCurtis said Community www.healthplus.org/signature.html BANKRUPTCIES 1-877-562-0907 The following businesses filed for Chapter 7 or 11 protection Feb. 26- Mar. 4 in U.S. Bankruptcy Court in De- troit. Under Chapter 11, a company files for reorganization. Chapter 7 in- volves total liquidation. 2 Days Child Learning Center Inc., 15075 Meyers, Detroit, voluntary Chapter 11. Assets and liabilities not available. Tiffany’s Building Services Inc., P.O. Box 19131, Detroit, voluntary Chapter 7. Assets: $32,776; liabilities: $632,972. V Publications L.L.C., dba Clear Maga- zine, dba V-Mag, dba Led Zed’s Print- ing Co., dba Emin Photography, dba El- ement Studios, 433 N. Washington FLINT 2050 S. Linden Road, Flint, MI 48532 Ave., Royal Oak, involuntary Chapter 7, petitioned by Phoenix Press Inc., SAGINAW 5454 Hampton Place, Saginaw, MI 48604 1755 Bellingham, Troy. Assets and lia- bilities not available. TROY 101 W. Big Beaver Road, Suite 140, Troy, MI 48084 Wings & Wheels Delivery Inc., fdba G & W Management Inc., 24895 Mur- ray, Harrison Township, voluntary HealthPlus PPO is a product of HealthPlus Insurance Company, Chapter 11. Assets: $365,450; liabili- ties: $1,395,607. a wholly owned subsidiary of HealthPlus of Michigan, Inc. — Compiled by Dustin Walsh 20100308-NEWS--0008-NAT-CCI-CD_-- 3/5/2010 2:50 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS March 8, 2010 Rising costs have people with insurance delaying care – survey

BY JAY GREENE Udow-Philips said the shifting of ty of federally qualified health cen- several health plans. “These findings point to the CRAIN’S DETROIT BUSINESS costs to employees to keep premi- ters, free clinics and other safety- “This is very instructive for poli- changing economic landscape in ums down may be reaching its lim- net providers helped increase ac- cymakers because 88 percent of Michigan,” Udow-Philips said. A new survey in Michigan chal- its. “You want people to get the cess to health care for people kids get coverage through Blue “Worries about the potential loss lenges long-held assumptions that care they need living in urban areas. Cross and they pay providers better of health insurance coverage have people with insurance have ade- and discourage Doug Halladay, director of Michi- than Medicaid,” Udow-Philips said. now extended to those in manufac- quate access to health care services discretionary gan Cover the Uninsured Network, said “The lack of access is very di- turing.” and confirms the negative impact (treatments) or the availability of health centers rectly reflecting the underpay- Of the survey respondents, 88 that rising health care prices have unnecessary and free clinics in Detroit helps alle- ment in the Medicaid program,” percent said they had some form of on choices consumers make when care,” she said. viate some access problems. she said. “There are fewer doctors insurance coverage. But of the 12 they need medical services. Another find- But Halladay said the growing willing to take Medicaid and more percent who were uninsured, the In a survey released today by ing is that low- number of uninsured is straining willing to take MiChild.” survey found that 31 percent of the Center for Healthcare Research & income urban hospitals and clinics. Rick Murdock, director of Michi- those people “lost” insurance dur- Transformation, 17 percent of people dwellers in De- “Try and get an appointment in gan Association of Health Plans, said ing 2009. with insurance delayed seeking troit and other Detroit at a health center,” Halla- health plans pay physicians lower “This seems pretty high and is Udow-Philips “needed care” primarily because cities in Michi- day said. “I feel guilty directing reimbursement rates for Medicaid telling of what is happening in the they believed they could not afford gan had fewer problems accessing people to the clinics because I recipients than MiChild because manufacturing industry with peo- to pay for health care services. health care services than those know they have a six-week waiting the state has chronically under- ple being laid off,” Halladay said. For those who are uninsured, who live in small towns and rural list for new patients.” funded the Medicaid program. “This tells me that the trends of 40 percent delayed needed care be- communities. Another question asked Michi- “We agree that access is at risk the uninsured are going to go up,” cause of costs, the report said. “It is surprising that there is not ganders with Medicaid or with due to low provider payments that he said. “For those with insurance, co- much difference in access between MiChild coverage was whether they were exacerbated by the 8 percent In Michigan, approximately pays and deductibles have been in- high-income people in suburban ar- had problems accessing health cut taking place this fiscal year,” 1.2 million are uninsured, includ- creasing and people are delaying eas and (people who live) in urban care services. Murdock said. “This is main rea- ing 180,000 in Detroit, he said. Ap- needed care because costs are get- areas,” Udow-Philips said. “People Thirty-five percent of Medicaid son why MAHP is advocating that proximately 1.8 million are cov- ting high,” said Marianne Udow- in the urban areas of the state had recipients said they had difficulty Medicaid provider rates must be ered by Medicaid. Philips, CHRT director. the lowest average incomes and re- finding providers. The vast major- increased to Medicare level.” The CHRT survey was conduct- The survey, which is the third in ported better access to health care ity of Medicaid recipients receive The survey also found that peo- ed in August by Michigan State Uni- a series of CHRT issue briefs, than all but suburban dwellers with care through Medicaid health ple working in the manufacturing versity’s Institute for Public Policy and found that 35 percent of all survey the highest average incomes.” plans that contract with the state. sector are just as worried about Social Research. It will be part of respondents delayed needed care The survey found that 16 per- On the other hand, only 12 per- losing health insurance coverage CHRT’s Cover Michigan report to be because they could not afford cent of people living in urban ar- cent of those with MiChild cover- as those in the arts, services, hos- released in April. health care prices. eas said they delayed needed age reported having problems pitality and retail sectors. Housed at the University of Michi- “What this says is that (employ- health care services compared finding physicians or other About 40 percent of people in gan in Ann Arbor, CHRT is a part- ers) need to look at how they are with 10 percent of people living in providers, the survey found. manufacturing, arts, hospitality nership between UM and Blue shifting costs to employees very suburbs. Some 23 percent to 25 per- MiChild, which provides health and education are worried about Cross Blue Shield of Michigan. carefully,” Udow-Philips said. cent of people who live in rural or insurance to about 33,000 children losing health insurance. Some To read the entire report, visit “You want to set co-pays and de- small towns said they delayed under age 19 who are not eligible 50 percent of people working in CHRT at www.chrt.org. ductibles based on the value you needed care because of high costs. for Medicaid, is offered by Blue restaurants and bars fear insur- Jay Greene: (313) 446-0325, put on health care.” Udow-Philips said the availabili- Cross Blue Shield of Michigan and ance loss. [email protected]

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March 8, 2010 CRAIN’S DETROIT BUSINESS Page 9

DEFENSE WORK Automation Alley begins program to create local jobs, Page 11

REPORTER’S NOTEBOOK

Chad Halcom covers law, manufacturing and defense. Call (313) 446-6796 or write chalcom @crain.com. Manufacturing’sManufacturing’s

Chad Halcom Rocky road ahead, says appraiser medicinemedicine The evidence of recovery is tenuous, and several pitfalls lie ahead that could still derail the national economy in 2010, according to Jamie Muter, owner and president of Troy-based Muter and Associates Inc. and adjunct professor of financial economics at the University of Detroit Mercy. Companies turn to medical devices to relieve aching budgets Muter, who handles commercial real estate appraisal services for banks BY DANIEL DUGGAN Kaczperski. and other clients, said the biggest peril CRAIN’S DETROIT BUSINESS The firm produces plastic ahead could be a surge of commercial components and assemblies — foreclosures. They want to see that t wasn’t that long ago that the “ sometimes as a subassembly A report last month from the employees of Diadem Precision you’ll be committed to and sometimes putting the en- Congressional Oversight Panel I Technology Inc. in Troy were tire product together. estimates that $1.4 trillion in designing and producing parts medical, even as auto comes Over the past few years, commercial real estate loans will reach for cars. the end of their terms between 2010 medical has grown as an in- Now they’re making teeth. back up. creasingly large portion of the and 2014, and nearly half of the Mike Girard, president and ” COURTESY OF DIADEM PRECISION TECHNOLOGY INC. borrowers owe more than their business, Kaczperski said, now CEO of Diadem, opened a Jeff Kaczperski, Omega Plastics property is worth today. making up one-third of its 22,000-square-foot manufactur- $6 million gross revenue. “So you have all these loans from ing plant in Troy last summer turing sector, said Dan Luria, ment manufacturer for med- three or four years ago in a very Getting medical business re- where staffers use a process vice president for research for ical devices, suppliers are hav- different real estate market, where the quires time to find clients and the Plymouth-based Michigan ing success getting contracts term is now coming due and the similar to automotive part pro- earn their business, he said. borrower needs to refinance,” Muter duction to create crowns for Manufacturing Technology Center, with the OEMs, especially sup- keeping them requires a show said. dental work. which provides resources and pliers familiar with automo- of commitment. “And if you borrowed for $1 million He picked the region for the training for companies seeking tive work. “They want to see that you’ll for property that’s now worth high-quality real estate and a diversified book of business. “If you’re used to doing tight- be committed to medical, even $600,000, you may find the banks available labor base. In 1996, nationwide, there tolerance stuff, you have expe- as auto comes back,” he said. either won’t refinance your loan or will “Almost the entire staff were 301,000 employees in the rience in stainless steel or “You have to show commit- only refinance for its current value and came from the automotive in- medical manufacturing sector, products with plastic and met- ment.” the rest of the principal is due now. dustry,” said Girard, who he said. In 2009, there were al in them, you’re a good bet,” To show that, Kaczperski And this could trigger huge numbers of founded the company last year 308,000. Luria said. said, Omega has built a white defaults and foreclosures.” in Windsor. “They’re really fa- Comparatively, Luria said, For example, Clinton Town- room and a clean room — man- Residential foreclosures — which miliar with CAD (computer- overall manufacturing dropped ship-based Omega Plastics be- ufacturing areas that are free have been falling off in market share aided design), so they made the from 17 million jobs to 11 million gan exploring medical and oth- from dust and other debris. among home sales, according to the transition very quickly from jobs during the same period. er non-automotive Such levels of cleanliness are most recent report of multiple listing auto parts to teeth.” And while it is difficult to get manufacturing companies six service MLS Realcomp II — would Medical manufacturing has started as an original equip- years ago, said President Jeff See Medical devices, Page 10 climb again if jobless benefits expire. been the source of new busi- More than 135,000 long-unemployed ness and new jobs across the Michigan residents are due to see region in recent years. It has their benefits expire in March. also helped prop up existing “If benefits for Michigan residents companies. didn’t get extended, you almost While there are cases, such couldn’t avoid further destabilization in as Diadem, where the medical housing (markets),” he said. manufacturing sector creates Also troubling the outlook is the new jobs — 10, in that compa- federal deficit, which topped ny’s case — there are many $1.4 trillion in 2009 and could trigger more cases where companies inflation and rising interest rates if that have traditionally been Congress and the White House are not automotive suppliers are pick- aggressive enough in capping future spending. ing up medical device manu- facturing clients to replace lost Other countries may share the inflation concern, he said, based on business. reports that India’s central bank According to research by acquired more than $7.5 billion in gold Medical Main Street, a program from the International Monetary Fund of Oakland County, there are in fourth-quarter 2009 and that China 121 companies in Southeast has increased its gold holdings. Michigan focused on medical “If those countries are trying to devices and instrumentation. acquire that much gold, it would suggest they are considering either backing or partly backing their own Stable demand money supply with it,” he said. “And Medical manufacturing is DAVID DALTON that might suggest a concern about about as close as one can come CEO Mike Girard’s Diadem Precision Technology Inc. employs mostly automotive industry veterans at its Troy (global) inflation.” to a recession-proof manufac- location, where ceramic blocks — like the one in the photo at the top of the page — are milled into dental crowns. 20100308-NEWS--0010-NAT-CCI-CD_-- 3/4/2010 2:52 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS March 8, 2010 Jobs/Economy Lobster lovers, come out of your shell! Medical devices: Switch relieves aching budgets ■ From Page 9 not required for automotive manu- facturing. Medical work is also replacing We have the business for J.C. Gibbons “ Manufacturing Inc., a Livo- workforce nia-based screw machine company. they’re looking Four years ago, the firm’s book of business was for. Engineers, 75 percent automotive and 25 percent non-automotive, research said Vice President Jay Gibbons. Now the company people; those is 50-50, he said, with gross employees are revenue between $2 million and $3 million. important to these While the firm isn’t hiring, it’s Introducing our Lobster Duo not losing a lot of employees ei- companies. ther. ” A broiled Cold Water Rock Lobster Tail served with your choice “It’s helping us fill the void from Maureen Donohue Krauss, of Lobster Ravioli or a Lobster & Shrimp Cake only $24.95. the drop in auto,” Gibbons said. Oakland County As part of the Medical Main Street program, medical manufac- 2013 as part of the tax incentives turing companies are highly approved by the Michigan Economic sought after by the county’s eco- Growth Authority, she said. Howev- nomic development team, said er, the firm already has hired 77 Maureen Donohue Krauss, Oak- new employees and expects to con- land County director of economic tinue adding to the 500-person development and community af- staff. fairs. Also adding jobs for medical & -61-2+,%1ˆ0-:32-%ˆ63',)78)6,-007 “For one, we have the workforce manufacturing is Auburn Hills- ;;;1-8',)007* -7,1 %6/)8 '31 they’re looking for,” she said. “En- based Plex Systems Inc. gineers, research people; those em- The company provides software ployees are important to these to help companies run their busi- companies.” nesses, focusing on running a shop floor, quality checks, shipping and accounting, said President and Technical know-how CEO Mark Symonds. In August 2008, two Ann Arbor- In 2009, Plex moved into medical based subsidiaries of Japan-based and has added four employees to medical company Terumo Corp. the 140-person staff. committed to bring its West Coast The company, in business since manufacturing facility to Ann Ar- 1995, had always depended on au- bor. tomotive business but has learned The move made sense to consoli- in recent years that diversification date business, but also because of is crucial to survival. communicate. the available talent pool in the And while medical work can area, said Barbara Schmid, direc- help fill contract gaps, many com- collaborate. tor of corporate communications panies are still struggling to keep for Terumo Heart Inc. and Terumo new business coming in. Cardiovascular Systems Corp. “Everyone is feeling the effects The subsidiary companies pro- these days,” said Gibbons of J.C. Event Information duce devices to assist in cardiac Gibbons. “There is no golden goose and vascular surgery. out there.” March 25, 2010 The two companies in Ann Ar- Daniel Duggan: (313) 446-0414, Detroit, MI [email protected] Join AVI-SPL, the largest global integrator of AV systems and services, bor agreed to create 65 new jobs by Sheraton Detroit Novi for our FREE AVI-SPL University event in Detroit! At AVI-SPL University, you’ll: Register Today! Commercial • Residential • Retail Online s#ONNECTWITHTODAYSCUTTING EDGE!6MANUFACTURERSANDCERTIlEDPROFESSIONALS www.avispl.com/events s$ISCOVERTHELATESTINNOVATIONSFORVIDEOCONFERENCINGANDTELEPRESENCE By Phone s!TTENDINFORMATIONALSEMINARSANDEARN!)!#%5S Toll free (877) 440-6205 s2ECEIVECOMPLIMENTARYBREAKFASTANDLUNCH ANDFANTASTICDOORPRIZES For more information, visit www.avispl.com/events or call (877) 440-6205. •Kitchen •Shower & Bath •Glass Fencing & Handrails •Landscape Glass •Partition Walls TPS-6X Red-1 •Mirrors •Green Ideas Isys® 5.7” Wireless Touchpanel Remote Ethernet Device •Online Store Delivers high-end style and performance The first graphical remote control from in a very versatile, ergonomic design. Go Biamp Systems. Simple to operate. Simple to effortlessly from wired tabletop use to fully install. Red-1 is the control you’ve been waiting for. FREE estimates & consultations wireless handheld operation. 7420 Allen Rd | Allen Park MI Detroit Offi ce 2605 E. Oakley Park Road, Walled Lake, MI 48390 313.928.0428 (248) 669-4286 www.avispl.com | 800.282.6733 Trainorglass.com/retail 20100308-NEWS--0011-NAT-CCI-CD_-- 3/4/2010 2:51 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 11 Jobs/Economy Economists: Employment, pay to creep up; health care still tops

BY DANIEL DUGGAN “The recession killed big-ticket AND DUSTIN WALSH items,” he said. “In Michigan, that CRAIN’S DETROIT BUSINESS All of the growth meant a much more significant “ drop in auto sales than general re- The increase in Michigan em- has been at the high tail sales.” ployment during the last few However, Strauss said the retail months of 2009 was led by the busi- end of the skill jobs sector will see steady im- ness services and science and tech- provement in Michigan this year nology sectors but dragged down distribution. I don’t as the economy strengthens and by significant losses in retail jobs. auto sales continue to grow. Looking at this year, economists see that trend The education and health care expect gradual growth but contin- reversing itself in sectors grew by 9,000 jobs in Michi- ued volatility when looking at gan from November 2008 to Octo- short-term figures. 2010. ber 2009 and grew in December Michigan’s unemployment rate ” 2009 to 624,000. at the end of December was 14.6 per- “The top performer is still Charles Ballard, cent, the highest in the country — health care,” Johnson said. “De- Michigan State University increasing by 41.3 percent, or mands rise regardless of economic 205,000 jobs, since December 2008. part of a roller-coaster ride over conditions as the population ages.” Unemployment rose nationally the course of the year. Ballard also said health care em- by 33.9 percent during the same pe- Starting with 516,100 jobs in Jan- ployment will rise in 2010. riod. uary 2009, the sector dropped to Meanwhile, compensation in- Job losses decreased sharply in 474,400 in August before rallying to creases in the Detroit area the second half of 2009, down to an 512,000 in October and 515,000 in matched the national average, ac- average of 2,000 jobs lost per November. cording to the Bureau of Labor Sta- month from 33,000 per month in Similarly, the science and tech- tistics of the U.S. Department of La- the first of half of the year. nology sector started the year with bor. In metro Detroit, unemployment 223,400 jobs, dropping to 214,500 in The compensation increase for was down 1.3 percentage points in August 2009. It then rallied in the the year that ended in September December 2009 to 15.4 percent, fall, to 219,400 in November. Seg- showed a 1.2 percent increase, from 16.7 percent in October 2009. ment detail is not yet available for with wages and salaries increas- The average unemployment rate year-end figures. ing 1 percent. in 2009 was 15.4 percent in metro The demand for higher educa- Nationwide, total compensation Detroit, up from 8.8 percent in tion and skilled technical labor costs rose 1.2 percent, and wages 2008. has been increasing for years, said and salaries 1.4 percent over the Dana John- Charles Ballard, an economist at same period. son, vice presi- Michigan State University. Average weekly earnings in the dent and chief “All of the growth has been at manufacturing sector showed economist at the high end of the skill distribu- large increases starting in May Comerica Bank, tion,” he said. “I don’t see that and continuing through the year, said month-to- trend reversing itself in 2010.” according to DELEG figures. NATURAL GAS / PROPANE HEATERS month labor fig- More growth in science and After year-low average weekly ures are usually technology would have occurred if earnings of $998 were posted in volatile and un- the automotive industry collapse May, earnings reached $1,231 in reliable, but he had been avoided, he said. November, topping January’s fig- Johnson does expect Despite an increase in retail ure of $1,005. some growth this year. sales, the number of retail jobs in Johnson said if the auto indus- “The economy is going to grow Southeast Michigan plummeted in try continues to improve, more in 2010, but moderately,” he said. 2009. wages and year-end bonuses will “We should see just enough Retail jobs dropped from 464,700 be reinstated in 2010. But he cau- growth to keep jobs about level or, in January 2009 to 437,200 in No- tioned not to expect large growth. maybe, a slight increase.” vember 2009. “If better news keeps coming on Johnson forecasts a 1.2 percent That’s because of the slowing autos, you might see salary rein- Portable Heaters (Natural or LP Gas) from 16,000 increase in national jobs growth economy, said William Strauss, statement, but we won’t be seeing and about 0.5 percent in Michigan. economic adviser and senior econ- any increases.” to 4,000,000 BTU’s are available for sale or rent. Job increases in the business omist at the Federal Reserve Bank of Daniel Duggan: (313) 446-0414, Also in stock are Ground Thawers and Fans. services sector in Michigan were Chicago. [email protected]

*Lift Truck Fuel* *Temporary Heat* Automation Alley program aims to create defense jobs

BY CHAD HALCOM Heights, will include local instruc- the defense industry,” Automation 7200 Inkster Rd. Phone: (313)292-9100 CRAIN’S DETROIT BUSINESS tion and video conferencing with Alley Executive Director Ken P.O.Box 35 Fax: (313) 292-5950 instructors at Rogers said. Taylor, MI 48180-0035 www.propaneservices.net Several local defense contrac- the DAU’s Mid- “In the next five years, this part- tors, colleges and universities and west campus in nership is expected to create 3,000 trade associations formally agreed Kettering, Ohio. new jobs in Southeast Michigan.” with Troy-based Automation Alley on The program Collaborators in the program Wednesday to launch a program in aims to recruit include GDLS; BAE Systems, which CRAIN’S SEEKS Sterling Heights that could create college stu- also has operations in Sterling up to 3,000 local jobs in defense ac- dents, disabled Heights and Troy; AM General Health Care Heroes NOMINATIONS quisition and logistics. veterans and L.L.C.; Macomb Community College; More than 100 people were on displaced de- the Flint campus of Baker College; WinnersW in five categories: NOMINATIONS hand as the Alley and Ft. Belvoir, fense industry the U.S. Army Tacom Life Cycle Man- Rogers Corporate achievement Va.-based Defense Acquisition Uni- workers for agement Command and the Tank-Au- DEADLINE: May 10 in health care versity entered a memo of under- training to land local private and tomotive Research, Development and Fill out the online form standing at the Troy Marriott to public sector jobs in defense Engineering Center along with sev- Advancements in www.crainsdetroit.com/nominate. health care form the Southeast Michigan Edu- acquisition. eral of their program offices in Questions? Contact Jennette Smith Physician cational Partnership Program. “We are offering Southeast Warren; and the Society of Automo- at 313.446.1622 The program, to be housed near Michigan’s future and current tive Engineers International. Allied health or email at [email protected]. the headquarters of General Dynam- workforce the opportunity to ex- Chad Halcom: (313) 446-6796, Trustee ics Land Systems in Sterling plore new and exciting careers in [email protected] 20100308-NEWS--0012-NAT-CCI-CD_-- 3/4/2010 3:34 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS March 8, 2010

Spotlight on black-owned businesses

Here’s a look at combined revenue of the 1986 $188.4 million five top-ranked black-owned area 1990 $282.1 million businesses since Crain’s started tracking them in 1986. Bing Steel, later The Bing 1995 $727.2 million Group, by far made the most 2000 $1.21 billion appearances, five, in the ever-changing roster. The group dissolved last year, sold 2005 $3.15 billion some assets and is auctioning others. 2009 $2.47 billion CRAIN'S LIST: LARGEST BLACK-OWNED BUSINESSES Ranked by 2009 revenue

Local Company Revenue employees Percent Address Phone; Web site ($000,000) Jan. 2010/ Black- Rank Majority owner 2009/2008 2009 owned Type of business Bridgewater Interiors L.L.C. $915.0 957 51% Automotive interiors 1. 4617 W. Fort St., Detroit 48209 $1,186.0 1,126 (313) 842-3300; Ronald Hall, president and CEO TAG Holdings L.L.C. 533.0 6 85 Supplier to automotive, heavy truck, 2. 2075 W. Big Beaver Road, Suite 500, Troy 48084 753.0 6 sport/recreational vehicle, (248) 822-8056; www.taghold.com motorsports and consumer products Joseph Anderson Jr., chairman and CEO industries Barden Cos. Inc. 405.0 10 100 Gaming, residential and commercial 3. 163 Madison Ave., Suite 2000, Detroit 48226 455.0 11 real estate development and (313) 496-2900 entertainment Don Barden, chairman, president and CEO Prestige Automotive 371.2 NA 100 Automobile dealerships, insurance 4. 20200 E. Nine Mile Road, St. Clair Shores 48080 646.2 150 and real estate (586) 773-2369; www.prestigeautomotive.com Tax Experience Gregory Jackson, chairman, president and CEO Piston Group 247.8 120 100 Automotive supplier 5. 12723 Telegraph Road, Redford Township 48239 162.3 130 (313) 541-8546; www.pistongroup.com In Your Corner. Vincent Johnson, chairman Global Automotive Alliance L.L.C. 222.0 350 100 Automotive-related businesses 6. 2627 Clark St., Detroit 48210 261.3 371 (313) 842-3009 Wiiliam Pickard, CEO Integrated Manufacturing and Assembly 195.0 B NA 51 Contract automotive assembly C L.L.C.; 19881 Brownstown Center Drive, Suite 890 280.0 300 7. Brownstown Township 48183; (248) 233-0860; www.comerholdings.com Jim Comer, president and CEO The Bartech Group Inc. 185.0 1,073 100 Human capital and staffing services 8. 17199 N. Laurel Park Drive, Suite 224, Livonia 48152 235.0 991 (734) 953-5050; www.bartechgroup.com John Barfield, founder SET Enterprises 171.0 140 100 Metal processing 9. 30500 Van Dyke Ave., Suite 701, Warren 48093 185.0 160 (586) 573-3600; www.setenterprises.com Sid Taylor, chairman and CEO GlobalHue 125.1 D NA 100 Advertising agency 10. 4000 Town Center Drive, Suite 1600, Southfield 48075 123.8 D 130 (248) 223-8900; www.globalhue.com Donald Coleman, chairman and CEO Briarwood Ford Inc. 111.4 NA 60 Automobile dealership 11. 7070 E. Michigan Ave., Saline 48176 122.6 156 (734) 429-5478; www.briarwoodford.com Eddie Hall Jr., president Bill Perkins Automotive Group 105.5 150 100 Automobile dealerships 12. 21800 Gratiot Ave., Eastpointe 48021 111.2 156 (586) 775-8300; merollischevycars.com Bill Perkins, president Avis Ford Inc. 86.5 NA 61 Automobile dealership 13. 29200 Telegraph Road, Southfield 48034 74.7 104 (248) 355-7500; www.avisford.com Walter Douglas Sr., CEO Tom Kenny Advantage Management Group-The Manors 55.2 1,100 53 Nursing homes Tax Attorney 14. 17515 W. Nine Mile Road, Suite 925, Southfield 48075 54.8 1,100 [email protected] (248) 569-8400; themanors.net Reginald Hartsfield, president Unibar Services Inc. 55.0 NA 81 Utility support and meter services, 15. 4325 Concourse Drive, Ann Arbor 48108 49.0 damage prevention, facilities (734) 769-2600; www.unibarinc.com locating and asset protection G. Jean Davis, president and CEO James Group International Inc. 53.0 131 100 Logistics and supply-chain 16. 4335 W. Fort St., Detroit 48209 69.1 140 management (313) 841-0070; www.jamesgroupintl.com John James, chairman and CEO Rodgers Chevrolet Inc. 40.0 NA 85 Automobile dealership 866-4VARNUM www.varnumlaw.com 17. 23755 Allen Road, Woodhaven 48183 50.5 (734) 676-9600; www.rodgerschevrolet.com I Novi (Metro Detroit) I Grand Rapids I Kalamazoo I Grand Haven I Lansing Pamela Rodgers, president MPS Trading L.L.C. 35.4 5 51 Metals trading and scrap metal 18. 2920 Scotten, Detroit 48210 118.6 5 management (313) 841-7588; www.mpsgrp.com Charlie Williams, CEO, chairman and president Crain’s MPS Group Inc. 33.7 90 52 Industrial and environmental is seeking nominations for its 19. 2920 Scotten, Detroit 48210 45.1 110 management, flooring installation, (313) 841-7588; www.mpsgrp.com facility management Intern and Employer of the Year contest. Charlie Williams, chairman, president and CEO The Epitec Group Inc. 31.0 550 100 IT staffing services Winners will receive a paid trip to the Detroit Regional Chamber’s 2010 Mackinac 20. 24700 Northwestern Highway, Southfield 48075 29.0 500 (248) 353-6800; www.epitecgroup.com Policy Conference, June 2-5, courtesy of InternInMichigan.com and the Detroit Jerome Sheppard, CEO Regional Chamber and recognition in Crain’s Detroit Business and the Detroiter. This list of black-owned businesses is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, the companies provided the information. NOMINATIONS DEADLINE: April 9. Fill out the Percentage of the company that is black-owned may not be solely held by majority owner. NA= not available. online form www.crainsdetroit.com/nominate. B Crain's estimate. Questions? Contact Michelle Darwish, C Company estimate. entrepreneurship editor, at [email protected] D GlobalHue provided billings of $833.7 million for 2009 and $825 million for 2008. Revenue is an estimate based on 15 percent of billings. or (313) 446-1621. LIST RESEARCHED BY ANNE MARKS 20100308-NEWS--0013-NAT-CCI-CD_-- 3/4/2010 2:55 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 13 Extra WHAT’S IN FUTURE FOR KARMANOS? Cancer institute’s new CEO, Gerold Bepler, talks with reporter Jay Greene, Page 17

People

Ⅲ Frank Torre Jr., president and CEO of Pontiac-based landscaping firm Torre & Bruglio Inc., is new chairman of the Detroit Medical Center’s Rehabilitation Institute of Michigan. He succeeds Frank Stella, now chairman emeritus. Side-by-side Ⅲ Mohammad Tariq Kang, M.D., to chief of geriatrics, DMC Huron Valley- Sinai Hospital, remaining internist. Specialized physician-owned hospital Ⅲ Bruce Wolf, D.O. at DMC Huron Valley- Sinai Hospital, elected president, Oakland County Osteopathic Medical Association. finds it can operate in neighbor’s shadow Ⅲ Christopher BY JAY GREENE effects Steffes, M.D.,has been appointed co- CRAIN’S DETROIT BUSINESS chief of surgical oncology service at t’s one thing to have a com- the Barbara Ann peting hospital in your mar- Karmanos Cancer I ket, but it’s another to have Institute, sharing the one in your adjacent parking role with George lot. Yoo, M.D. Steffes Physician-owned Oakland also is team leader Regional Hospital sits next to St. of the Sarcoma Steffes John Health System-owned Provi- Multidisciplinary Team at Karmanos. dence Hospital at West Nine Ⅲ Maha Hussain, M.D., to associate Mile Road and Foster Winter director of clinical research, University of Drive in Southfield. Michigan Comprehensive Cancer Center. While physicians and execu- The position had been vacant. Hussain tives say the two hospitals is a professor of internal medicine and don’t compete directly for pa- urology at the UM Medical School and is tients, clinical or medical co-leader of the cancer center’s urologic staff, they share overlapping oncology program. orthopedic surgery services Ⅲ Amanda Holm to that include hand and elbow, chairman of board of reconstructive and total joint directors, Tobacco- replacement. Free Michigan. Holm, “We have a wonderful M.P.H., is the project arrangement with Provi- manager in the dence. They send us patients Center for Health for subacute care and we send DAVID DALTON Promotion and them patients. We have mini- The view from Oakland Regional Hospital in Southfield takes in Providence Hospital next door. Oakland COO Disease Prevention at mal competition in hand Amelia Jones says the hospitals are more complementary than competitive. “Most of (Oakland’s) surgeries are Henry Ford Health planned and elective orthopedics. Providence is more likely to treat fractures and other emergencies,” Jones said. System, Detroit. Holm surgery,” which accounts for about 80 percent of the hospi- Ⅲ Michael tion Hospital from Claude Os- tal’s surgeries, said Amelia Rebock, to chief of ter, M.D., for $2 million. Jones, COO of Oakland Re- staff, Botsford Oster sold Great Lakes be- CEO announcement expected gional, a for-profit osteopath- Hospital, Farmington cause the reimbursement for- ic hospital. Oakland Regional Hospital is declining to talk about Ku- Hills. Rebock, D.O., mula had changed for rehabili- “Most of the surgeries are currently between CEOs. mar’s departure because the is a general surgeon; tation services and he wanted planned and elective orthope- Raji Kumar, who served as hospital and Kumar are he succeeds Philip to turn over the hospital to Kaplan, D.O., a dics. Providence is more likely CEO from 2005 until early working out separation-of- younger physician-owners, pulmonologist. to treat fractures and other February, left after the physi- employment terms, Jones Jones said. emergencies,” Jones said. cian investors in the hospital said. Ⅲ John Bueno to After $23 million in repairs, board of trustees, In 2004, a group of 18 physi- decided to go “in a different Oakland Regional has Rebock 30-bed Oakland Regional Hos- POH Regional Medical cian investors — including direction,” according to COO hired a new CEO, but Jones pital opened in 2005. Center, Pontiac. Bueno is an investment Edward Burke, M.D., Oakland Amelia Jones. Board Chair- said a public announcement Oakland Regional also of- adviser with J.P. Morgan and former Regional’s board chairman — man Edward Burke, M.D., is will be made at a later date. president of the Pontiac City Council. bought Great Lakes Rehabilita- See Side by side, Page 14 Ⅲ Beaumont Hospital, Royal Oak, has named the following to its board of directors: Grant Beard, partner, the Anderson Group and chairman of T.A. Systems; Christopher Blake, president of Doctors confront state hurdles to operate medical centers the Blake Co.; Van Conway, founder of Conway MacKenzie; Martha James Quay, BY JAY GREENE lend itself to wholesale devel- owner of Veranda Inc.; Warren Rose, CRAIN’S DETROIT BUSINESS opment of these centers now.” general manager, Edward Rose and Sons. The regulatory environment doesn’t Despite the barriers, physi- Ⅲ Sheryl Laughren, attorney and Physicians in Southeast “ cians are finding ways to own shareholder at Berry Moorman P.C., to Michigan face barriers to own- lend itself to wholesale development of and operate a number of spe- chairman of the ing medical facilities that cialty surgery hospitals, am- board of directors, physicians in some regions of these centers now. bulatory care centers and di- Sacred Heart the country don’t. ” agnostic imaging centers, said Rehabilitation Michigan’s certificate-of- Gray Tuttle, The Rehmann Group Mohammed Arsiwala, M.D., Center, Detroit. need regulations have put a CEO of Michigan Urgent Care Ⅲ Mark O’Halla, damper on the number of centers, surgery centers and imaging centers and surgery Centers in Livonia (See story, president and CEO, physician-owned medical fa- the like,” said Gray Tuttle, a centers in Indianapolis than Page 15.) Mt. Clemens Regional cilities, according to several consultant and principal with in all of Southeast Michigan. “Doctors are forming for- Center, to board of health care experts. The Rehmann Group in Farm- “You can still do those, but profit entities to run ambula- directors, Southeast “The burden of CON in ington Hills. you have to satisfy the CON tory care centers and diagnos- Michigan American Michigan interferes with the Because of CON, Tuttle said, laws,” Tuttle said. “The regu- Heart Association. O’Halla wholesale development of MRI there are more ambulatory latory environment doesn’t See Doctor-owned, Page 14 20100308-NEWS--0014-NAT-CCI-CD_-- 3/4/2010 3:47 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 8, 2010 Health Care Extra Doctor-owned: Facing Side by side: Hospital fills niche ■ From Page 13 hurdles in Michigan fers a 26-bed skilled nursing unit, dence is not a problem and simi- to disregard their role in effec- a 15-bed rehabilitation unit and a lar to having a competing physi- tively serving Medicare and Med- ■ From Page 13 wound and podiatry clinic. cian-owned ambulatory surgery icaid beneficiaries.” But the hospital’s main profit center. Oakland Regional has a patient tic centers where they can send center is surgery. “Oakland Regional is primarily transfer agreement with Provi- their patients,” Arsiwala said. TYPES OF PHYSICIAN-OWNED It has four operating rooms into orthopedic surgery lines, and “Surgeons and anesthesiologists, dence that includes subacute care that handle about 6,000 annual there is some overlap in which we and subspecialty groups like urolo- and emergency referrals, Jones MEDICAL FACILITIES surgeries. compete (for pa- gists and gastroenterologists, are said. Specialty hospital: More than The top three surgery areas by tients),” Hoban starting surgery centers where they Since the hospital opened, two-thirds of patients are surgery volume are hands; knees and said. “We have can get both the operating room fee there have been only two cases in cases or are there for one or two shoulders; and reconstructive, had a very col- and the professional fee,” he said. categories of medical treatments. which Oakland had to transfer a Jones said. laborative rela- Other specialists often investing Most do not offer emergency care. patient to Providence for emer- “We’d like to expand our ortho- tionship with in surgery centers include oph- They specialize in cardiac, gency care, Kumar said. pedic surgery line to become a (the hospital) thalmologists and pain-specialist orthopedic or general surgery Some physician-owned hospi- musculoskeletal center of excel- over the last anesthesiologists. services, generally regarded as lence,” Jones said. “We are talk- four years.” tals have been criticized by the Michigan has 110 ambulatory more profitable. ing about adding more imaging Hoban said AHA for not prearranging emer- surgery centers, including 45 in Ambulatory surgery center: Offers a wide range of surgical services. The vision could change St. John has gency referral arrangements with Southeast Michigan, according to procedures where patient stays are discussed a va- Hoban full-service hospitals. the Lansing-based Michigan Ambula- as we add physicians.” less than 24 hours. riety of joint ventures with Oak- Southeast Michigan has at tory Surgery Association. Nationally, For the first two years, in 2005 Urgent care center: Accepts land Regional, ranging from own- least two other physician-owned there are nearly 6,000 in the U.S. — and 2006, Oakland Regional en- walk-in patients with a variety of joyed 20 percent total profit mar- ership equity to new service lines hospitals: Detroit Hope Hospital some 40 percent in five states: Cali- illnesses, injuries or diseases. gins, said Raji Kumar, the hospi- such as long-term care. and Doctor’s Hospital of Michigan fornia, Florida, Texas, Georgia and Services include radiology, Pennsylvania. electrocardiogram and automated tal’s former CEO. Crain’s “At various times, we have had in Pontiac. Several physician-owned ambu- external defibrillator. Staffed by a interviewed Kumar before she left very brief discussions, but as we But Jones said Oakland Region- latory surgery centers have licensed physician or midlevel the hospital. (See box, Page 13.) looked into it in depth, we decided al takes all comers. opened in Southeast Michigan in provider such as a nurse Primarily because of the econo- it is not a fit for us going forward. In 2009, 15 percent of Oakland practitioner or physician assistant. my, profit margins dropped to This is a capital-constrained envi- recent years. They include Lakes Regional’s patients were on Med- Surgery Center in West Bloomfield Diagnostic imaging center: 13 percent in 2007, 12 percent in ronment. We have to look where icaid, up from 9 percent in 2008. Houses traditional X-ray, magnetic 2008 and 10 percent in 2009, said is best to invest,” Hoban said. Township, Meadowbrook Medical resonance imaging, computerized The remaining payer mix for 2009 Center in Novi and Premiere Surgery Kumar, who was CEO from 2005 “We are always open for discus- included 22 percent Medicare, tomography, positron emission until early February. sions.” Center of Michigan in Clinton Town- tomography, ultrasound and 41 percent commercial and 22 per- Revenue was $31 million in Jones confirmed there are no ship. mammography. cent worker’s compensation, she both 2008 and 2009, up from current discussions with Provi- There are three physician- said. $23 million in 2007. dence. owned hospitals in Southeast primary care and such specialties Hoban said he is unaware of Michigan: Oakland Regional Hospital as cardiology. Oakland Regional is one of However, Jones said physi- three divisions of Southfield Reha- cians have been negotiating a any instances in which physi- in Southfield, Doctors Hospital of “They want to plug them in to cian-owned hospitals in Michigan Michigan in Pontiac and Detroit feed inpatient beds and to control bilitation Co., a Warren-based merger or affiliation with a large have created problems for Hope Hospital. utilization and ancillary services,” holding company. The other two orthopedic surgery group in nonprofit community hospitals. As with ambulatory-care centers, Tuttle said. “Hospitals also are divisions are Oakland Regional Southeast Michigan that could more than 60 percent of the nation’s partnering with physicians with Macomb Center, an outpatient expand the number of physician “I am not aware of any situa- 200 physician-owned hospitals are imaging centers and ambulatory surgery center in Warren, and investors in the company. She tions when we felt they were in Texas, Oklahoma, Kansas, South surgery centers. ASCs are wonder- the Oakland Nursing Center, the declined to name the surgery avoiding certain payer classes or Dakota and Florida. fully profitable.” skilled nursing unit housed in group. doing any patient ‘cream skim- Tuttle said physician group Bob Hoban, chief strategy offi- Oakland Regional. Under the current physician in- ming,’ ” Hoban said. practices are adding imaging, ul- cer with seven-hospital St. John The physician investors in vestment strategy, Jones said In an effort to provide a contin- trasound, surgery and other ser- Health System in Warren, said the Oakland Regional also operate Oakland Regional limits the num- uum of care to surgery patients, vices that are profitable and pro- poor economy has slowed the de- Michigan Surgery Specialists, a ber of doctors that hold share- Jones said, Oakland Regional also vide easy access to patients. velopment of physician-owned group of seven clinical offices in holder interests. There are 12 full provides rehabilitation services “The groups will have midlevel medical facilities. Southeast Michigan, including partners with full investment that include care for patients with diagnostics (including magnetic “Five years ago, physicians Hand Surgery Associates of Michigan shares and another six associates arthritis, brain injury, cancer, resonance imaging and computed were more aggressive in building P.C., Jones said. who own less than full shares, she cardiac-related disorders, hip and tomography scanners), small labs outpatient centers,” Hoban said. “The doctors wanted to invest said. knee fractures or replacements, and pharmacy,” Arsiwala said. “Physicians are coming to us in co- in a hospital to have direct say-so Expanding the number of in- kidney and renal failure, spinal in the operations and the quality vestors is more of a front-burner “This is the recipe for the future.” ownership models for diagnostic cord injuries, sports injuries and centers and laboratories. Those of care,” Jones said. item because of possible legal Tuttle said hospitals also are ag- stroke. gressively purchasing small and are positive developments.” Bob Hoban, St. John’s chief changes at the federal level. Oakland Regional also serves medium-size physician practices Jay Greene: (313) 446-0325, strategy officer, said having a Jones said physician-owners as a teaching hospital for resident and medical groups, including for [email protected] competing hospital next to Provi- are concerned about federal legis- lation aimed at banning or cur- physicians. For example, orthope- tailing the growth of physician- dic surgery residents from Henry owned hospitals. The American Ford Macomb Hospitals-Warren Cam- Today, more than ever, global competition Hospital Association supports a va- pus and Detroit Medical Center have riety of restrictions. training rotations at Oakland Re- and corporate streamlining require innovative “This would affect us very neg- gional, Burke said. thinking and leadership abilities. Continuing atively and not allow us to grow Podiatry residents at Provi- in programs and services to the dence Hospital also rotate your education can be key to ensuring your community,” Jones said. through Oakland Regional’s OR. success. From information systems to business In proposed federal health care Like most hospitals, Oakland reform bills, the Senate and Regional has been looking to in- administration, Lawrence Technological House versions contain provi- crease its efficiency by reducing University can prepare you with the skills needed sions that would ban new physi- administrative and clinical ex- cian-owned hospitals. The ban to take your management skills to the next level. penses. would not go into effect until 2014 Earlier this year, Oakland Re- and would grandfather in the na- gional joined the group purchas- tion’s 200 existing physician- Visit ltu.edu/applyfree ing program through Flint-based owned hospitals. to have your application fee waived! McLaren Health Care Corp. But the bills also would prevent the hospitals from opening new It also contracts with Botsford beds or building new operating Hospital in Farmington Hills for Leaders in the Making rooms. pathology and laboratory ser- While a 2005 report from the vices. Medicare Payment Assessment Com- “We are delighted to be their Explore over 20 master’s and doctoral programs in architecture, business mission concluded that, overall, lab,” said Gilbert Herman, M.D., administration, communication, computer science, information systems, interior Botsford’s director of laboratory design, and engineering, as well as 20 accelerated graduate certificate programs physician-owned hospitals had in growing fields, including bioinformatics, defense, energy, and urban design. “little impact on community-hos- medicine. “The affiliation has pital profitability through 2002,” been mutually beneficial.” Lawrence Technological University 21000 West Ten Mile Road, Southfield, MI 48075-1058 800.CALL.LTU [email protected] ltu.edu the report said some specialty Jay Greene: (313) 446-0325, hospitals “could have incentives [email protected] 20100308-NEWS--0015-NAT-CCI-CD_-- 3/4/2010 2:11 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 15 Health Care Extra Urgent care chain opens ninth center, in Grosse Pointe Woods

BY JAY GREENE the economy and rising numbers years led us to offer urgent care,” CRAIN’S DETROIT BUSINESS of patients without insurance and Anderson said. “We provide inter- on Medicaid. im care to patients and are trying An urgent care chain founded However, over the past several to supplement, not replace prima- by Mohammed Arsiwala, M.D., an years HMOs and health insurers, ry care physicians.” internist turned small-business including Blue Cross Blue Shield of In response to corporate-owned man, has opened its ninth center, Michigan, have begun to contract companies like Concentra and the in Grosse Pointe Woods. with urgent centers because of more retail-oriented CVS Minute Unlike some corporate-owned their lower cost relative to emer- Clinics, physician practices are urgent care centers, the business gency departments, Arsiwala said. adding more evening and weekend model of Livonia-based Michigan Nationally, urgent care clinics hours, investing in diagnostic Urgent Care Centers is designed to have been increasing the past few equipment and setting aside time support primary care physicians years to about 8,000, said the Ameri- each week to open office hours for instead of directly competing with can Hospital Association. About patients who want to drop in with- them, Arsiwala said. 54 percent are physician-owned, out having to call for an appoint- “We do not do primary care in 25 percent are hospital-owned and ment. our urgent cares. When primary 18 percent are corporate-owned, Over the past several years, a care doctors cannot fit in their pa- according to the Urgent Care Associ- number of hospital-owned urgent tients, or in the evenings or week- ation of America. clinics also have sprung up, in- ends, they refer their patients to DUSTIN WALSH/CRAIN’S DETROIT BUSINESS While no one keeps track of ur- cluding several operated by William us,” said Arsiwala, who is a board Livonia-based Michigan Urgent Care Centers founder Mohammed Arsiwala, M.D. gent care centers in Southeast Beaumont Hospitals, Henry Ford member of the Michigan State Med- — shown here in his new Grosse Pointe Woods center — employs 115 people in Michigan, Arsiwala estimated the Health System, St. Joseph Mercy ical Society. Southeast Michigan. number has tripled in 10 years to Health System and St. John Health “We have patients who want us about 100. System. to be their primary care physician, mont Hospital, Troy. fluid therapy. John Anderson, D.O, senior vice In fact, four of the centers are af- but we tell them we can’t take care “We are more in Oakland Coun- The base charge at Arsiwala’s president of medical operations in filiated with St. John, including of chronic diseases. They should see ty, and he is located more in centers in Detroit and Canton is the Bingham Farms office with joint ventures for centers in De- a primary care physician and get a Wayne County,” said McIntosh, $50; other centers charge $100 for a Addison, Texas-based Concentra, troit at the former Riverview Hos- medical home,” Arsiwala said. who plans to open another four to physician visit, he said. said urgent care centers in South- pital, the shuttered Holy Cross Grosse Pointe Urgent Care, which six centers in the next few years in Despite the economic downturn, east Michigan are filling a less Hospital, the old Samaritan Hospi- is staffed by board-certified physi- metropolitan Detroit. Arsiwala’s model appears to be costly niche for employed and tal and at Connor Creek. Arsiwala cians and physician assistants, is Arsiwala also operates centers working. Over the past 10 years, uninsured patients than emer- also leases space from Detroit at 20311 Mack Ave. It is open seven in Livonia, Canton Township, Michigan Urgent Care has grown gency departments. Medical Center for Novi Urgent Care days a week, 8 a.m. until 10 p.m. Novi, Dundee and four in Detroit. to nine centers from one. Concentra operates 17 centers in and from Mercy Memorial Hospital, Bruce McIntosh, M.D., one of the He employs 115 full- and part-time “We provided clinical care to Southeast Michigan, and 300 na- Monroe, for Dundee Urgent Care. He principal physician owners of Doc- workers, including 30 physicians, 75,122 patients last year, and those tionally in 40 states, that offer a has private leases with two centers Now Urgent Care, also uses employed four physician assistants, one numbers have been steadily in- blend of occupational medicine in Canton and Saratoga. His ninth physicians to staff his two centers nurse practitioner and 80 support creasing 10 to 12 percent a year,” and urgent care. Each center is center is in Livonia. in Troy and Rochester Hills. staff. Arsiwala said. staffed by a physician and other Arsiwala plans to expand west “He (Arsiwala) runs an opera- Services include minor emer- About 60 percent of the centers’ practitioners during the day, but to Brighton in April and later this tion very similar to mine. He is gency care, treatment for sore patient mix is commercial, 30 per- night hours could be staffed only year will open a center in Macomb truly doing urgent care and not throat and respiratory infections, cent is Medicaid and 10 percent is by nurses, Anderson said. County, near Harrison and Clin- trying to be a primary care physi- chest pain and urinary tract infec- uninsured. “Concentra started out in occu- ton townships. cian,” said McIntosh, who also is tions. The centers also provide car- In 2009, revenue declined 10 per- pational medicine in 1979, and in- Jay Greene: (313) 446-0325, chief of general surgery at Beau- diac monitoring and intravenous cent to about $8 million because of quiries from employers over the [email protected] WSU: Impact ‘huge’ if perinatal research contract not renewed

BY JAY GREENE search center since 1992, said CRAIN’S DETROIT BUSINESS Roberto Romero, M.D., the chief who opened the center. In 2002, the Wayne State University officials are NICHD reopened the contract to a making preparations to ensure that national competition that Wayne its Perinatal Research Branch will be State ultimately won. able to continue its more than 20- The center is one of three re- year mission at the Detroit Medical search branches funded by the NIH Center to reduce infant mortality outside the Washington, D.C., area. and preterm delivery rates. Of Wayne State’s $110.5 million Wayne State’s 10-year contract in annual research dollars, the with the National Institute of Child perinatal center accounts for Health and Development, which funds $14.7 million, or 13 percent. the perinatal center, expires in 2012. Through competitive bidding, Besides attracting research dol- the NICHD awarded Wayne State a lars, the center also helps Wayne $150 million contract, passing over State recruit and offers patients in such nationally recognized re- Southeast Michigan cutting-edge search powers as Yale University, patient care, Romero said. the University of Pittsburgh and the Parisi said she expects to file an University of Miami. application with the NICHD some- Despite a successful scientific time later this year or in early 2011. track record at the center, housed “(NICHD) hasn’t told us the re-com- at DMC’s Hutzel Hospital, there is petition timetable yet,” she said. some doubt whether WSU will re- The center was created to ad- ceive a second contract, because of dress the causes of high infant the federal agency’s proclivity to mortality in the United States, spread research dollars around. with a particular emphasis on pre- “I would be naïve to be uncon- mature birth and congenital anom- cerned, because at the end of the alies, Romero said. day, the (NICHD) has to be fair,” For a more detailed version of said Valerie Parisi, M.D., interim this story, see www.crains dean at Wayne State University detroit.com/sections/health. School of Medicine. Jay Greene: (313) 446-0325, The DMC has housed the re- [email protected] 20100308-NEWS--0016-NAT-CCI-CD_-- 3/4/2010 3:34 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 8, 2010 Health Care Extra Blue Cross posts $12 million in net income in 2009

Boosted by $241.5 million in in- the state’s 82 counties with Washt- The report was funded by a Brehm Center at www.med.umich vestment income, Blue Cross Blue Health Care Briefs enaw at seventh and Oakland com- grant from the Robert Wood Johnson .edu/brehm. Shield of Michigan reported last ing in 18th, according to the Univer- Foundation. — Jay Greene week net income of $12 million for serves also grew to $2.5 billion sity of Wisconsin Population Health For more information, go to 2009 compared with a loss of from $2.2 billion in 2008. Institute in Madison. www.countyhealthrankings.org. UM cardiac surgeon wins $145 million in 2008. “Our financial position in 2009 Wayne County ranked second — Jay Greene Blue Cross lost $257 million in was sustained through a very deter- lowest at 81st. Clare County fin- $230,000 for two-year study combined group and individual mined effort to manage our invest- ished last. Macomb ranked 34th. UM eye center opens new tower The Thoracic Surgery Foundation market lines for 2009. In 2008, total ment returns,” Loepp said. “The in- The health outcome rankings for Research and Education has underwriting losses, which includ- vestment markets cannot be are based on measures of mortali- The University of Michigan’s W.K. awarded the University of Michigan’s ed Blue Care Network, its health expected to compensate every year ty, birth outcomes and health-re- Kellogg Eye Center opened its new Jennifer Hirsch, M.D., M.S., with the maintenance organization, were for our losses on health care prod- lated quality of life. eight-story Brehm Tower, giving Nina Starr Braunwald Award. $128.1 million. ucts offered in a broken individual The study also ranked counties patients, researchers and educa- Hirsch, surgical director of the “We are cutting our own costs, re- market that desperately needs the by health factors, which included tors an additional 230,000 square pediatric cardiothoracic intensive sponsibly managing our invest- attention of policymakers.” access to quality care, smoking, feet of space. care unit at UM Medical Center, will ment portfolio and engaging with — Jay Greene obesity, education, income and The tower is adjacent to the eye use the accompanying $115,000-a- providers to address the cost of other factors. center research tower on Wall year grant for a two-year project to health care by improving quality,” Report: Health quality varies In health factors, Wayne County Street in Ann Arbor and houses develop an assessment tool for in- CEO Dan Loepp said in a statement. finished last, with Washtenaw and seven eye clinics and suites for re- fants’ sensory and motor skills after Revenue grew somewhat in A new report reveals that Liv- Livingston coming in at No. 1 and fractive surgery and cosmetic surgery for congenital heart defects. 2009, increasing to $21.6 billion ingston County ranked the highest No. 2; Oakland at No. 4; Macomb at surgery. It also features areas for The award goes to women car- from $21.2 billion in 2008. Its re- in Michigan in health outcomes of No. 26; and Monroe at No. 35. diabetes research and laboratories diac surgeons at academic health for vision scientists. institutions to help advance re- For more information, go to the search in the specialty. It’s named W.K. Kellogg Eye Center Web site in honor of the nation’s first fe- at www.kellogg.umich.edu or the male cardiac surgeon. Spectrum Health approved

LAST YEAR, 100,000 PEOPLE for heart, lung transplants BY JAY GREENE year for the following two years. CRAIN’S DETROIT BUSINESS However, Medicare will not pay SWITCHED TO PRIORITY HEALTH. for heart transplants until a facili- Spectrum Health, a seven-hospital ty has performed at least 10 heart system in western Michigan, has transplants. received the green light to begin Spectrum’s Butterworth Hospital in heart and lung transplants, ac- Grand Rapids performs the highest cording to a ruling by the Michigan number of open heart surgeries in Department of Community Health. Michigan, DCH said. In 2006, But- The DCH last month approved terworth performed 1,045 open Grand Rapids-based Spectrum’s heart surgeries, Beaumont Hospital application for a certificate of need did 845, and UM did 869. to allow it to become the third pro- Because most of the equipment gram in Michigan and the first and support services are already outside of metropolitan Detroit. in place, Spectrum said it will cost Spectrum now must perform a only $400,000 to purchase addition- minimum of 12 heart or heart and al capital equipment. lung transplants annually during But Spectrum expects financial the second year of operation or losses for several years as it esti- risk losing its CON. mates operational costs for the Several years ago, William Beau- program will run nearly $4 million mont Hospitals in Royal Oak lost its annually. CON to perform heart and lung Spectrum has been aggressively transplants, said Attorney General expanding both its system and its Mike Cox. This allowed Spectrum services. to apply because the state Certificate In January, it signed a nonbind- of Need Commission has limited the ing letter of intent with Traverse Yesterday’s same-old, same-old health plans state to three programs, he said. City-based Munson Healthcare to ex- just aren’t measuring up. Look to Priority Health Bob Riney, COO of Henry Ford plore options that include merger for a variety of innovative products and funding Health System in Detroit, one of the or affiliation, officials said. hospitals approved to conduct A merger could create a 14-hos- options, so you can manage your costs and heart and lung transplants, said pital system of owned, managed provide benefits your employees will value. Call the decision will have little impact and affiliated hospitals. Spectrum at Henry Ford. owns a majority share of 500,000- your agent or Priority Health at 800 471-2504 or “We have some referrals from member Priority Health. Munson visit priorityhealth.com to learn more. west Michigan, but it is a minority owns a 5.5 percent interest. of patients, a very small amount,” Last December, West Michigan Riney said. Heart P.C., Grand Rapid’s largest Henry Ford Hospital and DMC’s cardiology group with 30 physi- Children’s Hospital of Michigan have cians, agreed to join Spectrum Health shared a joint program since 1996. Medical Group and completely merge The University of Michigan Health with Spectrum in five years. System has its own program. Six months ago, Spectrum and In 2006, UM performed 64 heart Michigan Medical, the area’s largest and lung transplants, Henry Ford physician group, also agreed to a did 25, and Children’s had nine, said merger. the state. The totals include sepa- In addition, Spectrum Health is rate heart and lung transplants and talking with three-hospital North- combined heart-lung transplants. ern Michigan Regional Health System In the CON application, Spec- in Petoskey about an affiliation. trum Health projects nine trans- Jay Greene: (313) 446-0325, plants the first year and 12 each [email protected] 20100308-NEWS--0017-NAT-CCI-CD_-- 3/4/2010 4:19 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 17 Health Care Extra

ON THE LOOKOUT FOR HEALTH CARE HEROES Crain’s Detroit Business is seeking responsible for a discovery or for New CEO: Karmanos has tools to nominations for Health Care developing a new procedure, device Heroes, a special report or service that can save on health care lives or improve quality of professionals that will life. run in the Aug. 9 issue. Ⅲ Physician: Honors a develop ‘next standards of care’ The program will honor physician whose top-notch medical innovators and performance is considered Gerold Bepler, M.D., a tional and international environment. My interactions with patient advocates — the inspiring exemplary. thoracic oncologist, is reputation. It is at the (Wayne State medical school inter- leaders who bring new meaning to Ⅲ Allied health: Honors an the new CEO of the Bar- forefront of clinical re- im dean Valerie Parisi, M.D., and the word “dedication” through their individual from nursing or allied bara Ann Karmanos Cancer search, developing new DMC CEO Mike Duggan) have been efforts to save lives or improve health fields deemed exemplary by access to care. Institute in Detroit. His standards of care science great. They understand cancer is a patients and peers. first day was Feb. 1. and integrating basic sci- complex and special disease. We Winners will be chosen in five Ⅲ Trustee: Honors leadership and categories: Bepler, 53, who was di- ence and patient care. have an optimal partnership. distinguished service by a health rector of the Comprehen- There are five or six com- Ⅲ Corporate achievement in health care trustee. Your predecessor, Dr. John Ruckde- sive Lung Cancer Research prehensive cancer cen- care: Honors a company which has schel, often talked about lack of physi- A panel of health care judges will Center at the Moffitt Cancer ters of this kind with its created an innovative health choose the winners. Visit cal space at Karmanos for additional Center in Tampa, Fla., will own hospital in the na- benefits plan or has solved a www.crainsdetroit.com/nominate patients and surgery. What will you do also serve as principal in- Gerold Bepler tion — M.D. Anderson, problem in health care to submit a nomination. The about this issue? administration. vestigator of Karmanos’ Memorial Sloan-Kettering, deadline is May 10. Questions? It is true we are landlocked, but Ⅲ National Cancer Institute Comprehen- Moffitt and Dana-Farber — and Kar- Advancements in health care: Contact Jennette Smith at (313) we can optimize space. We can im- Honors a company or individual 446-1622 or [email protected]. sive Cancer Center Support Grant. manos is one of them. prove the care environment by us- Born in Frankfurt, Germany, What are some of your accomplish- ing outside locations and through Bepler came to the U.S. in 1983 af- ments at Moffitt that you bring to Kar- joint ventures with outside organi- ter receiving his medical and doc- manos? zations. We need to provide easier toral degrees from the Philipps Uni- We developed new therapies for access for patients because they versity School of Medicine and patients with lung cancer using don’t want to travel when they are Dentistry in Marburg, Germany. molecular knowledge (biomarkers). diagnosed with cancer. His postdoctoral fellowships were We have the diagnostic tools here at completed at the National Cancer Karmanos for detailed gene inves- What is Karmanos’ regional expan- Institute, Philipps University and at tigations to do further studies and sion strategy? Duke University Medical Center. develop the next standards of care. The clinic area we have here is With an annual budget of crowded. It is sometimes busy and $216 million, Karmanos treats 6,000 What do you know about the rela- noisy. There have been improve- new patients each year and con- tionship with Detroit Medical Center ments and we are working on more. ducts more than 700 cancer-specific and Wayne State? We want to bring our complex and scientific investigation programs You are touching on an issue cost-intensive cases here to Detroit and clinical trials. There are 1,000 much more global than just Wayne and do more follow-up care at out- employees, including 300 physician State versus DMC. You are running side locations. It makes sense clini- and scientist faculty members. a hospital and how do you staff it cally and operationally. Outpatient In a recent interview, Bepler from a physicians’ perspective? locations include the Lawrence and spoke with Jay Greene, editor of Wayne State has an academic mod- Idel Weisberg Cancer Treatment Center Crain’s Health Care Extra. el with an educational mission and in Farmington Hills and the Kar- they have to educate the next gener- manos-Crittenton Cancer Center in Why did you want to be CEO at Kar- ation of physicians. You can’t do it Rochester. We just signed an affilia- manos? What drew you here? virtual. You have to do with in an tion for a joint venture with Mercy Karmanos has a fabulous na- environment where you have pa- Memorial Hospital in Monroe. tients and hands-on experience. That creates a necessity to operate What is the current financial condi- within a health system like DMC. tion of Karmanos? But the educational component is We are fairly stable, consider- costly. Academic physicians are not ing the economy. We are in the going to produce as much health black nine months into fiscal 2010 care dollars as doctors in private and are keeping pace with our bud- practice. This creates a conundrum. geted net income and cash flow. How do you best walk that line of What is your vision for the future of having a hospital that is profitable Karmanos? or at least break even and support What we are about is developing an academic mission as well? the next standard of care instead of What challenges does Karmanos applying the current standard of face? care. This sets us apart from com- I am an optimistic person. We munity hospitals. This is our have a complex structure with De- strength. Ultimately, our goal is to troit Medical Center and Wayne State put ourselves out of business (by University. The access to intellectual curing cancer). capacity is almost unlimited be- Jay Greene: (313) 446-0325, cause of the academic and clinical [email protected] CAREER MOVES

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Page 18 CRAIN’S DETROIT BUSINESS March 8, 2010 Health Care Extra Diabetes medication, fracture risk linked A study at Henry Ford Health Sys- Guide needed for use of beta tem found that women with Type 2 Research Roundup diabetes who took a specific class blockers, UM specialists write of medications to treat insulin re- have the benefit of a low-cost, easi- Heart specialists at the University sistance are at a higher risk for ly tolerable treatment for one of of Michigan say physicians need bone fractures. the most neurologically devastat- universal methods for prescribing The study, published in this ing conditions,” Michael Chopp, beta blockers before surgery. month’s Journal of Clinical En- Ph.D., scientific director of the The commentary, which ap- docrinology & Metabolism, re- Henry Ford Neuroscience Institute, peared in the Journal of the Ameri- vealed that women taking thiazo- said in a news release. can Medical Association, said clini- lidinedione are 50 percent more Henry Ford Hospital is the only cal studies using a defined model likely to suffer bone fractures. site in the U.S. conducting research of dosage and implementation are Those at greatest risk, 75 per- on niacin and ischemic stroke. needed to determine the correct cent, were women 65 and older. approach to using beta blockers. TZD has been linked to bone loss Beta blockers are used to slow and increasing fracture risk in UM study: Patient demographics the heartbeat and reduce the risk other studies; Type 2 diabetes and affect liver cancer biomarkers of heart attack during surgery, but insulin use also are linked to bone UM specialists believe beta block- A study by University of Michigan degeneration. ers can be harmful to patients with researchers has determined that During the study, 4,511 patients a low risk for a heart attack. commonly used biomarkers are filled a prescription for TZD, and re- Variations in previous studies not sufficient in early detection of searchers maintained their medical have left results hard to interpret, liver cancer. records to check for bone fractures. according to the commentary. The study, published in Gas- The increased risk became preva- Authors of the article include troenterology, analyzed the use of lent after one year of TZD use. Vineet Chopra, M.D., a hospitalist at two biomarkers, des-gamma- “Fractures are just one of a grow- UM Health System and clinical as- carboxy prothrombin and alpha ing number of problems associated sistant professor of internal medi- fetoprotein, that typically accom- with these medications,” said L. cine at the UM Medical School; and pany an ultrasound when attempt- Keoki Williams, M.D., M.P.H., Center Kim Eagle, M.D., director of the UM ing to detect liver cancer. for Health Services Research and se- Cardiovascular Center and the Al- Results indicate that patient de- nior study author. “Henry Ford and bion Walter Hewlett Professor of mographics, such as sex, ethnicity other researchers have previously Internal Medicine. and race, play a role in the effec- found that this class of medications Michigan has been awarded a tiveness of the biomarkers. $14.9 million U.S. Department of also can increase risk of congestive “Most surprising was the finding heart failure hospitalization.” Health and Human Services grant that patient demographics influ- that it will use to advance a enced both des-gamma-carboxy statewide health information tech- Study: Niacin helps improve prothrombin and alpha fetoprotein nology network to give residents brain function in stroke victims values, but in opposite directions,” and health care providers greater Anna Lok, M.D., professor of internal access to patient records and An early study from Henry Ford medicine at the University of Michigan health care information. Hospital researchers suggests that Medical School and lead author of vitamin B3, or niacin, may improve the study, said in a statement. brain function after a stroke. “This observation merits further Grants Rats given niacin after ischemic investigation, as it might impact stroke showed new blood vessel the accuracy of these biomarkers in The National Institutes of Health and nerve cell growth in the brain the detection of liver cancer in men has given a $14.8 million stimulus during the early study. versus women and in patients of grant to renovate and expand the Henry Ford researchers are cur- various races and ethnicity.” Institute for Social Research at the rently studying the effects of an ex- Funded by the National Institute University of Michigan, the Associat- tended-release form of niacin on of Diabetes and Digestive and Kidney ed Press reported. The institute stroke patients. Diseases and the National Institute of has received $48.3 million in stim- “If this proves to also work well Health, the study was conducted in ulus grants so far. in our human trials, we’ll then 10 centers across the U.S. — Jay Greene and Dustin Walsh New nursing home OK’d for Shelby Township The Michigan Department of Com- born, addition of one CT scanner, munity Health has authorized Cass CON Roundup $1.3 million. Street Investors L.L.C. of West Bloom- Auburn Hills Surgicenter, field Township to replace the Wil cate-of-need filings. Others can be Auburn Hills, to begin operation of Entertaining Mar Convalescent Home in Utica with found at www.michigan.gov/mdch. new outpatient facility with two a newly constructed nursing home operating rooms, $4 million. in Shelby Township. Decisions: Beaumont West Bloomfield ASC a group? Forty-nine beds from Wil Mar, Approved, William Beaumont L.L.C., West Bloomfield Township, We’ve got the ticket. along with the transfer of 41 beds Hospital, Royal Oak, to initiate liver addition of two operating rooms, from St. Anthony Healthcare Center transplantation services, no cost. $40,000. in Warren and 50 beds from St. Approved, University of Michi- Beaumont Macomb Township ASC Complimentary concierge planning. Mary’s Nursing & Rehab Center in St. gan Health System, Ann Arbor, re- L.L.C., Macomb Township, addition Entertainment, events, meetings and more. Clair Shores, will occupy the new placement of one cardiac catheter- of two operating rooms, $40,000. building. ization laboratory, $1.9 million. The 140-bed, 69,500-square-foot Disapproved, MediLodge of Applications: the nursing home will feature 96 units Howell, Howell, construction of an The Care and Rehabilitation Center — 44 semiprivate and 52 private addition and an additional 140 at Glacier Hills, Ann Arbor, construct cultural rooms — a rehabilitation center, nursing home beds, $5.9 million. an addition and replace 88 of its 161 meditation room, salon and spa, Disapproved, Heartland Health- nursing home beds, $17.6 million. concierge playroom, ice cream parlor and li- care Center-Livingston II, Brighton, MediLodge of Romeo, Romeo, a program of the cultural alliance brary. construction of nursing home with begin construction of 91-bed nurs- of southeastern michigan, The nursing home will be near 120 beds, $15.1 million. ing home, $10.8 million. a 501(c)(3) organization 22 Mile Road and Van Dyke and be Disapproved, Livingston Care Oakwood Southshore Medical leased from Macomb Senior Leasing Center L.L.C., Howell, to begin oper- Center, Trenton, adding one CT L.L.C. ation of new nursing home with scanner, $1.6 million. Children’s Hospital of Michigan, www.theculturalconcierge.org Construction will cost $8 million 144 beds in newly leased building, $7.6 million. Detroit, to initiate liver transplanta- 248.767.6731 [email protected] on land purchased for $735,293. Construction cost is estimated at tion services under a joint venture Support arts and culture in 2010. $115 per square foot. Letters of intent: with Henry Ford Hospital, no cost. Below are other selected certifi- Oakwood Healthcare Inc., Dear- — Compiled by Dustin Walsh 20100308-NEWS--0019-NAT-CCI-CD_-- 3/4/2010 2:06 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 19 Mission Workplace Solutions Does your law firm stand out from the crowd?

PEOPLE ARCHITECTURE troit, remaining principal. IN THE SPOTLIGHT Phillip Leader to vice president MANUFACTURING and MEP group manager, SHW Auburn Hills-based Karl Schmidt Group L.L.C., Berkley, from director Unisia, the North American Dennis McCardle to vice president of sales, Kolene automotive pistons division of of mechanical engineering, Albert Corp., Detroit, Kolbenschmidt Kahn Associates Inc., Detroit. from general man- Our attorneys are on a mission to provide solutions for your Pierburg AG, ager of sales. LAW has named “crowded” list of labor and employment issues – from Donald MARKETING navigating the maze of federal and state laws to counseling Cameron to the on strategic labor, employment and human resource matters. newly created Jane Englehart to position of vice president ac- Our team of labor and employment attorneys stands out president and count supervisor, from the crowd. CEO and Robert Ford Dealer Adver- tising, Farmington Steffens to the Hills, from ac- Attorneys on a Mission® newly created McCardle count supervisor. Cameron position of CFO. Your mission is our mission. We never lose sight of it. Cameron, 52, NONPROFITS had been vice president of Kevin Sweeney to director of Midwest Brader Carter region, Nonprofit Finance Fund, De- sales and troit, from independent finance con- engineering. sultant, Detroit. He has been A business advisory and advocacy law firm with the Megan Thomas to executive director, Six Rivers Region Land Conservancy, company for Carl J. Grassi Stephen M. Gross Rochester, from president, Firsthand President Detroit Managing Member 15 years. Wellness L.L.C., Birmingham. He earned both Christina Schroeder Levleit to pro- 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 a bachelor’s gram director at the Ken and Marian- 248.646.5070 degree in Steffens na Staples Family Center, The Salva- James J. Boutrous II • James J. Giszczak business and tion Army of Washtenaw County, Ann an MBA from Michigan State Arbor, remaining co-owner, Westside Antoinette M. Pilzner • Miriam L. Rosen Ficks Kokotovich University. Builders L.L.C., Ann Arbor. Detroit Members, Labor and Employment Practice Valerie Brader to partner, Bodman Steffens, 42, had been vice L.L.P., Ann Arbor; also, Michelle president of finance and SERVICES Chicago • Cleveland • Columbus • Detroit • West Palm Beach Carter to partner, Troy; Christine administration. He holds a Malcolm Fox to director of sustain- www.mcdonaldhopkins.com Ficks to partner, Detroit; Aaron bachelor’s degree in accounting ability programs, NSF International, Graves to partner, Troy; and Cather- from MSU and an MBA from Ann Arbor, from vice president, Tru- ine Schwedler Kokotovich to partner, Central Michigan University. cost North America, New York, N.Y. Detroit, all remaining attorney. Katherine Albrecht to partner, Beier Raitte, Heuer & Weiss P.C., South- TELECOMMUNICATIONS field, remaining attorney. Howlett P.C., Bloomfield Hills, re- Gary Macko to general sales manager, maining attorney in probate and es- Michelle Crockett to chair of women of WDIV-Channel 4, Detroit, from general tate planning group. legal and business network, Miller, Can- sales manager, WMC-TV, Memphis, David McDaniel to partner, Jaffe, field, Paddock and Stone P.L.C., De- Tenn. 800-292-3831 indiantrails.com CareerTransition Name: Thomas Glen- told my wife that I want- My first paying client was this nan, 58 ed to do something dif- past fall.” ONE HU G ND Education: Glennan ferent. I didn’t want to Obstacles overcome: “The IN R T E A D earned his master’s de- wait until I was 62 to re- biggest obstacle was moving R Y B E

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C professional communi- enjoyed technical writ- set schedule and my work and ex- 100 cation at Lawrence Tech- ing. I started looking pectations defined to being my nological University in around to decide if I re- own boss. I have to be incredibly 2009. He also earned a ally wanted to make a self-disciplined, and I really had master’s degree in busi- career out of technical to learn to plan ahead. I find that ness administration writing and, in the fall I wear three hats: I’m a technical from Oakland University Thomas Glennan of 2005, I enrolled at writer, I’m running a small busi- and a bachelor’s degree Former career: Lawrence Tech. I soon ness and I’m also marketing my in mechanical engineer- Technical came to the conclusion business. It’s very challenging, ing from General Motors integration that, yes, I did want to and it involves a very different Institute Kettering engineer for GM (now do this. My plan was to set of skills to those which I had University). New career: retire from GM in 2010. I used before.” Last career: Glennan Owner of technical launched my company Advice for others: “If somebody spent 40 years working writing company in January 2009 on a is looking to start their own busi- for General Motors Corp., part-time basis, but as ness, they first need to assess starting in 1969 as a stu- my client list and as- their strengths and weaknesses, Comfort and dent. He retired in 2009 having signments grew, I realized that I risen to the position of technical couldn’t do it part time. Then, and they need to be honest with integration engineer, working as this past summer, GM offered me themselves. Do your research a resource to other engineers try- early retirement. So everything and your homework. Once t
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Page 20 CRAIN’S DETROIT BUSINESS March 8, 2010

CALENDAR WEDNESDAY is $10. Contact: (734) 272-4698; e-mail: Social Media Boot Camp. 8 a.m.-5 p.m. [email protected]; Web site: [email protected]; Web site: la2m.org. March 11; 8 a.m.-noon March 12. Amer- www.scoredetroit.org. DOES THE STATE NEED A MARCH 10 ican Marketing Association Detroit Chapter. With Toby Bloomberg, diva Detroit Economic Club. 11:30 a.m.-1:30 Tour of A. Alfred Taubman Center for CONSTITUTIONAL CONVENTION? Achieving Fiscal Fitness: Oakland marketingblog.com; Dave Evans, author p.m. With Michael McCallister, presi- Design Education at CCS. 4:30-6:30 County. 8 a.m.-noon. Michigan Small of Social Media Marketing: An Hour a Join Crain’s Detroit Business, dent and CEO, Humana, Townsend p.m. March 16. Commercial Real Es- Business and Technology Develop- Michigan Business and Hotel, Birmingham. $45 members, $55 Day; and Dana Vanden Heuvel, founder, tate Women Detroit, International Fa- ment Center; Fifth Third Bank. De- Professional Association and ITC guests of members, $75 nonmembers. BlogSavant. Davenport University, cility Managers Association. College signed to strengthen financial literacy Livonia. $700 AMA members, $960 non- for Creative Studies, Detroit. $30 for a debate on the merits of Contact: (313) 963-8547; Web site: rewriting the state constitution. and improve the ability to access capi- www.econclub.org. members. Contact: (800) 262-1150; Web CREW and IFMA members, $45 non- tal businesses need to grow. Oakland site: www.marketingpower.com. members, add $10 after March 10. The debate, hosted by Crain’s County Business Center, Waterford Contact: (785) 832-1808; e-mail: crew Michigan Business (formerly Township. $50. Contact: (248) 858-2021; THURSDAY [email protected]; Web site: Bridging 96), is to take place COMING EVENTS www.crewdetroit.org. March 23 at the Country Club of e-mail: [email protected]; Web site: MARCH 11 www.gvsu.edu/misbtdc. Lansing. Panelists are to include Planning Your Own Business. 8:30 Are You Ready for the New Consumer? State Sen. Tom Detroit Economic Club. 11:30 a.m.-1:30 a.m.-12:30 p.m. March 16. Service 7:30-10:30 a.m. March 17. Inforum. George, R- Comment Moderation at p.m. With Dan Gilbert, chairman and Corps of Retired Executives, Detroit. AnnArbor.com. 11:45 a.m.-1 p.m. founder, Quicken Loans. Westin Book Learn to do the research and planning With Susan Yashinsky, macro trend Kalamazoo; Lunch Ann Arbor Marketing. With Cadillac, Detroit. $45 members, $55 required to start a successful busi- forecaster, Sphere Trending, dis- and John Logie, Edward Vielmetti, lead blogger at An- guests of members, $75 nonmembers. ness. Michigan Business & Profes- cussing how today’s consumer attorney, nArbor.com. Conor O’Neill’s, Ann Contact: (313) 963-8547; Web site: sional Association, Warren. $45. Con- is changing and how your company Warner Arbor. $3 suggested donation, lunch www.econclub.org. tact: (313) 226-7947; e-mail: can understand and leverage that Norcross and Judd, supporting a rewrite. Dianne Byrum, co- founder, Byrum George and Fisk REAL ESTATE Advocacy Communications, and Robert LaBrant, senior vice AUCTIONS INDUSTRIAL PROPERTY MISCELLANEOUS president/counsel, Michigan Chamber of Commerce, will speak in opposition to a rewrite. Troy -- Sale or Lease Immediate Occupancy 32,000 SQ. FT. LAB COMPLEX Registration is at 4 p.m., with a +8*(38%/,& $8&7,21 67,700 Sq. ft. Mfg. or Whse. Wet Labs from $8/sq.ft. strolling dinner at 6 p.m. Tickets 3DUFHOV:LOO%H6ROGRQ7KXUVGD\0DUFKWKDWSP $1.95/Sq. ft. Lease Rate Shared cell culture facility are $50 each, $45 groups of five 5HJLVWUDWLRQDWSP Possible Seller Financing Offices, conference rooms, kitchen & more or more, $60 at the door. For more $OO$XFWLRQVWREHKHOGDW*UDQG%ODQF5G6ZDUW]&UHHN0, Free Fenced Onsite Parking information, call (313) 446-0300 Broker/Owner (248) 705-0835 Metropolitan Center for High or visit www.crainsdetroit.com. For DQG$FUHSDUFHOVDUHDZDLWLQJ\RXURZQSULYDWHSUHVHUYH'RQ·W ZDLWWR sponsorship opportunities, contact IDUP UDQFK RU HQMR\ \RXU RZQ UHWUHDW  IRRW IHQFH RQ WKH PDMRULW\ RI WKH ODQG Technology Marla Downs at (313) 446-6052 /RFDWHGRQ*UDQG%ODQF5GLQ6ZDUW]&UHHN0LQXWHVIURPHZD\DQGVKRSSLQJ 2727 Second Ave. Detroit, MI, 48201 AVAILABLE NOW or [email protected]. $FUHV]RQHG&ZLWKD6T)WVWHHO Contact: Dan Goulston (313) 961-3390 FRPPHUFLDOEXLOGLQJZLWKODUJHSDUNLQJORW 4,000 to 100,000 sq. ft. change to reach new levels of success. PLQXWHVIURP866HOOLQJ$EVROXWHRYHU Also 10,000 & 25,000 sq. ft. The Westin, Southfield. $45 Inforum /RFDWHGRQ*UDQG%ODQF5GLQ6ZDUW]&UHHNZLWK Free Standing Bldgs w/truckwells. RESIDENTIAL PROPERTY members, $60 others. Contact: (313) *UDQG%ODQFMXVWGRZQWKHURDG 1 Mile from Metro Airport 578-3230; Web site: www.inforum WANTED: DEVELOPED LOTS michigan.org. /LNHFRPPHUFLDO"$OVRRIILQJDDFUHSDUFHORQWKHLQWHUVHFWLRQRI 'RUW+Z\ REA CONSTRUCTION DQG:*UDQG%ODQF,1*UDQG%ODQF PLQXWHVIURP*HQHV\V+RVSLWDO3HUIHFWIRU • 30 lot minimum with no maximum (734) 946-8730 Detroit Economic Club Meeting. 11:30 PHGLFDOXVH=RQHG2IILFH6HUYLFH5HDG\6HOOLQJ$EVROXWHRYHU²WKLVORZ • Developed Lots between 50’ to 80’ wide SULFHLVLQFUHGLEOH3DVWRIIHURI 0LOOLRQ Also Heavy Industrial a.m.-1:30 p.m. March 18. With Bill Land Available with utilities at the site Green, chairman and CEO, Accenture. • Wayne, Oakland, Macomb, and /LNHWR%XLOG"7KLV$FUHSDUFHOLVSUDFWLFDOO\RQWKHFRUQHURI 'RUW+Z\DQG: www.reaconstruction.net Detroit Marriott, Detroit. $45 DEC *UDQG%ODQFRII ,UDPS3HUIHFWIRU\RXUGUHDPKRPHEXLOGHURUJHWLWUH]RQHGDQG Washtenaw Counties members, $55 guests of members, $75 JR FRPPHUFLDO 0DVWHU 3ODQQHG &RPPHUFLDO  PLQXWHV IURP *HQHV\V +RVSLWDO nonmembers. Contact: (313) 963-8547; h • Must have price reflective of today’s 6HOOLQJ$EVROXWHRYHU,QFOXGHVDGXSOH[0RQW O\5HQWVWRWDO market conditions Web site: www.econclub.org. $OORI WKLVODQGLVVHOOLQJRQ0DUFKWK%HWKHUHDQGGRQ·W PLVVWKLVJUHDWRSSRUWXQLW\ • Cash buyer Fundamentals of Writing a Business Plan. 9 a.m.-noon. March 18. Oakland WRRZQVRPHRI WKHEHVWODQGDWXQEHOLHYDEOHSULFHV&DOOWRGD\ IRUDEURFKXUHRUYLVLW Send information to: XVRQOLQH 531,000 SQ. FT. AVAILABLE Grand Sakwa County Planning and Economic De- 5RVH$XFWLRQ*URXS//& P.O. Box 252018 velopment Services. Oakland County %HWK5RVH Easily Accessible  Low Rates  Rail  On-site Mgmt West Bloomfield, MI 48325 Executive Office Building, Waterford c/o Nick Donofrio &$,$XFWLRQHHU  Exterior Storage  www.waretechindustrialpark.com Township. $40. Contact: (248) 858-0783; 06$$&KDPSLRQ CATELLUS GROUP, LLC 810-695-7700 Web site: www.oakgov.com. 5HJLVWHUHG$XFWLRQHHU 5RVH$XFWLRQ*URXSFRP Call Us For Personalized INVESTMENT PROPERTY Top 10 Michigan Business Women AGENTS/REALTORS APARTMENT BUILDINGS Service: (313) 446-6068 Awards Luncheon. 10 a.m.-2 p.m. March 18. NAWBO Greater Detroit, WANTED: APARTMENTS Property 20 cents on the dollar CLOSING TIMES: Monday 3 p.m., Detroit Regional Chamber, others. • Residential land, Chesterfield Township, one week prior to publication date. Honoring Donna Strickland, Blue Wish you 1975 OR NEWER Please call us for holiday closing times. 72 acres, $550,000 Cross Blue Shield of Michigan; Marge were here in • Six fast-food sites on I-94, south of 21 Mile, FAX: (313) 446-1757 Sorge, Detroit Regional News Hub; • 150 or more units easy on /off,1.25 acres, $390,000, 6% E-MAIL: [email protected] others. Radisson Kingsley Inn, Bloom- • Detailed 12 month operational trailing cost, Naples? selling broker. INTERNET: field Hills. $50 members, $60 nonmem- previous year end operating statement and • Residential lots, Macomb Twp, 70’ wide, www.crainsdetroit.com/section/classifieds bers. Business to Business Expo ta- current rent roll needed bles: $125 members, $225 $23,500 Confidential Reply Boxes Available • Unit breakdown with square footage and nonmembers. Register by March 16. construction makeup • Jefferson Ave. Harrison Twp, (9) 50’ lots, PAYMENT: All classified ads must be Contact: (248) 645-7138; e-mail: zoned commercial, $15,000/each. prepaid. Checks, money order or • Must have price reflective of today’smarket Crain’s credit approval accepted. [email protected]; Web site: conditions • Waterford Twp, 56,256 sq ft, $8.80/sq ft, Credit cards accepted. www.nawbogdc.org. • Cash buyer bank financing, zero down, 4% interest Bill McMachen -- [email protected] See Send information to: Crainsdetroit.com/Section/Classifieds Crain’s M&A Awards. 5-9 p.m. March Grand Sakwa 586-915-4441 Lee & Associates 18. Crain’s Detroit Business; ACG You could be! Call me! P .O. Box 252018 for more classified advertisements West Bloomfield, MI 48325 Detroit; Honigman; Huntington Bank; c/o Nick Donofrio AON; FEI. Awards will be given for: Best Deal of the Year, Deal Maker of KerrieNovak the Year, Expansions and Lifetime REALTOR© COMMERCIAL PROPERTIES Achievement. Big Rock/Reserve, Birmingham. $60 each, $50 ACG .SunnyNaplesFloridaRealEstate.com 239-682-6106 WANTED: NEIGHBORHOOD members and groups of 10 or more, email: [email protected] SHOPPING CENTERS $70 at the door. ACG members www Downing-Frye Realty, Inc. and groups please call to register. Con- tact: (313) 446-0300; Web site: • 100,000 sq ft or greater www.crainsdetroit.com. For sponsor- • Must have Anchor Tenant ship opportunities, contact Marla ANNOUNCEMENTS • Price must reflect vacancies and current Downs at (313) 446-6052 or income [email protected]. • Cash Investors • • Aggressive cap on exsisting income Buy foreclosed homes from • Cash buyer Pancakes and Politics. 7:30-9 a.m. $15,000 - $25,000 and rent them. Send information to: March 18. Michigan Chronicle; Real In 2-5 years, sell the homes for Grand Sakwa Times Media. With Robert Bobb, double your investment. P.O. Box 252018 emergency financial manager, Detroit Bill McMachen West Bloomfield, MI 48325 c/o Nick Donofrio Public Schools. Detroit Athletic Club. [email protected] $65. Contact: (313) 963-8100; Web site: 586-915-4441 www.shop.realtimesmedia.com. 20100308-NEWS--0021-NAT-CCI-CD_-- 3/5/2010 4:43 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 21 Wayne County asks to get some of state’s unused stimulus bonds

BY NANCY KAFFER recovery zone facility bonds must verts back to the state?’ ” she said. Corp., said the city has OK’d one from the stimulus act or the U.S. CRAIN’S DETROIT BUSINESS be complete by year’s end, which “Otherwise, it’s going to revert project and is asking for more pro- Department of Treasury, three mod- means the state has a limited time back to the feds and none of us will posals, but the city is still working els for redistributing bond alloca- A stimulus-act bond program to act if it wants to redirect funds get any benefit.” within the limits of its initial allo- tions have emerged, he said. that can significantly reduce the from counties It takes about four to six months cation. “One is an executive order, one cost of private projects has been and cities that to sell bonds for a project, said Mullin pointed to one project is by statute, and one is to try to well utilized in Wayne County — so aren’t taking ad- Michael McGee, a principal in De- that’s been selected to receive a re- use cooperative efforts to encour- well, county officials say, that vantage of the troit-based Miller, Canfield, Paddock covery zone bond, a medical office age people to turn back the unused they’d like the state to redistribute program, said and Stone P.L.C.’s public finance in Dearborn. allocation to the state so the state bond capacity allocated to other Turkia Mullin, group. “One of the largest developments can then allocate to places where counties that aren’t taking advan- chief develop- And it also takes time for a coun- in the county is a Dearborn develop- there are projects,” McGee said. tage of the program. ment officer and ty or city to vet a project. ment, a health care entity, that Four to six months to bond out a Michigan received a roughly assistant execu- “We have over-allocated,” needed to bond for a parking facili- project is a good rule of thumb, $1.1 billion Recovery Zone Facility tive for Wayne Mullin said. “People are asking us ty,” she said. “We dedicated $12 mil- McGee said, but the process can Bond allocation. County. left and right, they want more ac- lion in facilities bonds. What that take longer in a tight credit market. The bonds allow private projects Mullin “We went to cess to these bonds.” did for the project, based on actual “We’ve got to put a fire under to be financed tax-exempt. A com- the Michigan Economic Development Beth Bingham, director of the interest rates, it dropped interest these people’s butts,” Mullin said. panion program, the Recovery Zone Corp. and the state months back and Michigan Economic Recovery Office, rates, dropped carrying costs and “People aren’t thinking statewide. Economic Development Bonds, al- said, ‘Hey guys, we see this as big said the state’s looking into it. the net present cash value to the They don’t have a sense of urgency lows bond-financed public projects picture, this could save tons of peo- “We have had that inquiry and deal was $4.5 million.” in government. We have to put in to receive a 45 percent federal tax ple money, and we’re afraid people we’re trying to figure it out,” she States around the country are processes that have a sense of ur- credit. Wayne and Oakland coun- aren’t going to act fast enough. So said. “We’re ... looking at it right working through this problem, gency.” ties received the largest allocation why not take the initiative and have now and trying to get answers on said McGee. Nancy Kaffer: (313) 446-0412, in Michigan, roughly $117 million the governor use a directive or it, the sooner the better.” In the absence of clear direction [email protected]. and $155 million, respectively. mandate that if you don’t use (the George Jackson, president and Financing for projects through bond capacity) by March 31 it re- CEO of the Detroit Economic Growth Rise of global platforms drives AZ Automotive deal

BY RYAN BEENE disclosed. lion in 2008, has manufacturing CRAIN’S DETROIT BUSINESS PineBridge Investments, formerly and engineering locations in known as AIG Vantage Capital until Brazil, China, Germany, Portugal AZ Automotive Corp. is expected to it was spun off from American Inter- and commercial offices in North close a deal this week to secure an national Group Inc. in November, America, but no manufacturing equity investment from a global will retain a minority ownership presence in the U.S. supplier of automotive stampings, stake in AZ. PineBridge is a New- The need for suppliers to com- welded assemblies and vehicle York based investment firm man- pete globally is not new. But as au- body structure components based aging about $87 billion in assets. tomakers cut brands and increas- in Portugal. The deal is fueled to bolster both ingly develop vehicle platforms The deal, which was close to be- firms’ ability to compete for con- that can be built and sold in a vari- ing finalized at deadline on Friday, tracts to supply global vehicle plat- ety of global markets, the need for would make the Sodecia Group AZ’s forms that are increasingly being suppliers to compete globally is majority shareholder, according to developed and manufactured by more pronounced, said Neil De a source close to the situation. automakers, the source said. Koker, CEO of the Original Equip- When the deal closes, Centerline- AZ, which posted revenue of ment Suppliers Association. based AZ will become Sodecia’s about $130 million in 2009, gener- “It’s probably more important North American operating unit ates about 80 percent of its sales than ever as the OEMs continue to and is expected to be renamed from the Detroit 3 and has no over- consolidate,” De Koker said. Sodecia North America, the source seas locations. Sodecia, which “There’s going to be global plat- said. The purchase price was not posted revenue of about $246 mil- forms that are going to be higher volumes, fewer of them, and as a re- sult if you’re not able to serve your customer globally then your ability to get that kind of business awarded MARKET PLACE to you is going to be reduced.” Vying to compete globally also is ANNOUNCEMENTS & BUSINESS & driving more of the M&A interest in the automotive supply chain, SERVICES INVESTMENTS according to Cliff Roesler, manag- ing director at Detroit-based in- FINANCIAL SERVICES BUSINESSES FOR SALE vestment bank W.Y. Campbell & Co. RENT A CONTROLLER Established gourmet market grossing $3.7 million; “The carrot of global (produc- I can make your business financially SDD, Class C tavern/wine bar; humidor, deli, bakery, tion contract) awards has been out successful at minimum cost. meat, produce, etc. in 18,000 sq. ft. showplace. Ask- [email protected] ing $3.9 million plus inventory. Call (248) 888-1466. there for probably five years, but the OEMs have been very slow to Call Us For Personalized INVESTMENT OPPORTUNITIES roll it out in a meaningful way,” Service: (313) 446-6068 LOOKING FOR AN INVESTMENT OPPORTUNITY Roesler said. FAX: (313) 446-1757 THAT IS CHANGING THE FACE OF DRYWALL? Winning supply contracts for E-MAIL: [email protected] Investment capital raised will be used to global vehicle platforms also INTERNET: obtain ICC Code Approval to establish www.crainsdetroit.com/section/classifieds a New Product Category. means higher volume, and rev- See Equity for funding exchange, in this new enue, for suppliers. multi-billion dollar product segment. Crainsdetroit.com/Section/Classifieds It's a Better Way To Drywall. Mike Wall, director of global ad- for more classified advertisements visory services for Northville-based Patent Pending Call 248.790.5571 CSM Worldwide Inc., used Ford Motor Co.’s Focus sedan as an example. The upcoming 2011 model-year Focus sedans will be sold in Eu- Technology News Report rope and North America and be built using the same basic compo- Crain's weekly Technology Report nents, with design feature nuances Sign Up for to suit the markets. Wall said highlights gadgets, research about 2.7 million Focus platforms Crain’s FREE and trends including early-stage could be built annually, versus companies, spinoffs, venture two slightly different, lower-vol- Technology ume regional platforms, with a capital investments and more regional supply base, in North America and Europe. Report entrepreneurial innovations. Ryan Beene: (313) 446-0315, Sign up now at crainsdetroit.com/getemail [email protected] 20100308-NEWS--0022-NAT-CCI-CD_-- 3/5/2010 3:29 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS March 8, 2010 Rail: Kilpatrick backs high-speed plan GET YOUR ■ From Page 1 BRAND Kilpatrick told the Detroit City erated her criticism of the pace of Council on Feb. 12 that “I’m sad to the organization’s rail project. say SEMCOG … has not done a good “I have questioned both publicly Kilpatrick’s support NOTICED. job with the $100 million. We should and privately why, after more than be much further than we are with six-and-a-half years of hard work by follows the money that commuter rail. So I’m here to me and my staff; a total of report to you because we have a $6.5 million in appropriations for U.S. Rep. Carolyn Cheeks Kil- new president who believes highly this project since 2005; and the patrick’s preference for high- in high-speed rail, all of my efforts strong support of the members of speed rail projects, which are are going to high-speed rail instead Michigan’s congressional delega- faster trains with fewer stops of commuter rail.” tion, Southeastern Michigan is still over longer distances, comes af- In a March 2 letter to Crain’s, without even the genesis of much- ter the White House set aside written in response to questions needed commuter rail,” she wrote. $8 billion for high-speed rail pro- about the SEMCOG letter, she tem- SEMCOG’s Feb. 26 letter isn’t jects under the federal Ameri- pered her vow — at least in the the first it has sent to Kilpatrick, can Recovery and Reinvestment case of the Ann Arbor-Detroit line. defending its work on the rail ef- Act of 2009, better known as the “While I will continue to fight for fort. The organization sent a simi- stimulus funding. this project, I have publicly stated lar, less defensive letter to her in In January, Michigan got my preference that Michigan begin January 2008. The gist of the de- $40 million for projects as part the move toward high-speed rail, fense, then and now, is that the of a larger $244 million award to the Michigan, Indiana and MARKETING ‡ PR ‡ DESIGN ‡ NEW MEDIA which is also President Barack Oba- project’s preliminary estimated identitypr.com ma’s preference,” she wrote. $73.85 cost per rider, compared to Illinois state transportation de- While saying she doesn’t ques- other projects competing for fund- partments to fund a high-speed tion SEMCOG’s “competence, in- ing, is high enough to make it un- rail project to link Pontiac and tegrity and motives,” she also reit- likely that the route would qualify Chicago. to actually use the $100 million. The Pontiac-Chicago line will The organization said the ear- also get $133 million for station mark is contingent upon the rail and track improvements in Illi- line meeting the Federal Transit Ad- nois and $71 million to reduce ministration’s New Starts transit passenger train delays linked to funding program requirements, freight train traffic that shares including ridership cost. The pro- the same tracks. gram, aimed at local transit pro- The route is part of the pro- jects, obliges planners to analyze posed Midwest Regional Rail Ini- various criteria, costs and alter- tiative introduced last year as a natives. joint effort by Michigan, Illi- “To be considered as having a nois, Missouri, Ohio, Indiana, competitive project, the number Wisconsin, Iowa and Minneso- has to be between $11.50 and $15 — ta to develop a high-speed rail what FTA calls medium-high. A network. The states have ap- medium rating for FTA would be plied for more than $900 million $15 and $23, which would make us in federal stimulus money for more competitive but still no guar- the project. antee that our project would be The administration gave funded any time soon,” said funding to 13 high-speed rail Carmine Palombo, SEMCOG’s projects in 31 states. transportation planning director. — Bill Shea That explanation was also given to Kilpatrick. Kilpatrick warned in her letter “The required studies conduct- that the House Transportation and ed by SEMCOG and independent Infrastructure Committee wants consultants, and verified by the to repeal unused project funding. Federal Transit Administration, “This means that the Detroit to produced results for all of the al- Ann Arbor project, which has ternatives,” SEMCOG wrote in its been idle from a federal perspec- Feb. 26 letter. “High cost-per-rider tive for more than six years de- for all the rail options — not any spite being both authorized and action or inaction by SEMCOG — appropriated, is in serious and sig- precluded access to the $100 mil- nificant jeopardy,” she wrote. lion for public transit on the De- The 48-mile rail line would link troit to Ann Arbor Corridor.” the cities for commuters, and it The agency also said it’s going would include several stops, in- beyond its scope in handling the cluding Detroit Metropolitan Airport rail project. and Dearborn. Amtrak would be “We share her contracted to operate the line, and frustration that SEMCOG has been negotiating this is moving with the freight companies that slowly, but own the tracks to use them for the frankly we feel passenger service. we’ve been doing SEMCOG’s goal is to have a more than what demonstration service started lat- would be expect- er this year, and the hope is that ed of an organi- its operation and ridership would zation like ours reveal a lower cost-per-rider num- Tait to move Ann Ar- ber than what the New Starts on- bor to Detroit forward,” said SEM- paper formula produced. COG Executive Director Paul Tait. The line is also a key element of The $100 million earmark came a regional mass transit plan devel- from the $286 billion Safe, Ac- opment at the behest of Detroit and countable, Flexible, Efficient Wayne, Oakland and Macomb Transportation Equity Act, which counties. SEMCOG’s hope is that is the six-year federal surface development of that plan, which transportation funding bill. includes new and improved bus The bill expired last fall and has routes and a light-rail line on De- been kept alive through short-term troit’s Woodward Avenue, will in- extensions while lawmakers and crease potential ridership on the the White House debated a replace- Ann Arbor line and thereby lower ment bill that would have doubled the cost-per-rider number to im- funding. Congress again extended prove its chances of getting the the bill, but only after last week’s New Starts funding. high-profile one-man filibuster by Bill Shea: (313) 446-1626, Sen. Jim Bunning, R-Ky. [email protected] 20100308-NEWS--0023-NAT-CCI-CD_-- 3/5/2010 5:16 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 23 Poverty summit eyes job skills, more BY SHERRI WELCH poverty and link job creation to an coffee!! CRAIN’S DETROIT BUSINESS economic development strategy. We’re creating Ⅲ Create choice and account- Forty local and national experts “ ability in adult education and gathered in Detroit last week to incentives ... retraining, where the money opportunity!! present their ideas for reducing follows participants and re- poverty in the country’s largest for actions quires results from adult edu- interested?? metropolitan areas over the next cation and training pro- two to four years. individuals grams. The daylong series of presenta- United Way for Southeast- franchise?? tions, hosted by United Way for South- (can) take. ern Michigan plans to use the eastern Michigan, was sparked by ” group’s recommendations to CEOs for Cities research that identi- Michael Brennan, form its strategy for helping fies $13 billion in annual public ben- United Way low-income families reach fi- Contact us at efit program savings from just a one nancial stability through efforts percentage point drop in the pover- recommendations from the poverty such as the Greater Detroit Center (517) 913-1987 or ty rate of the country’s 51 largest summit — available on its Web site for Working Families. metropolitan regions. at www.ceosforcities.org — with its United Way and Detroit Local Initia- [email protected] “Poverty very much can be a national network of leaders during tives Support Corp are working with hidden problem in some areas,” Strategy Session 2010, April 20-21 in SER Metro-Detroit Jobs for Progress Inc. said Carol Coletta, CEO of Chica- New York. The top four recommen- to operate the center. go-based CEOs for Cities. dations by the poverty experts in “We’re creating incentives … www.biggby.com While Detroit’s poverty level is Detroit last week were to: for actions individuals (can) take well-known, it’s not as well-known Ⅲ Reflect the purchasing power that will create the greatest impact that the levels in other large metro- in poor neighborhoods and focus on on their financial position,” Unit- politan areas, such as Austin, Hous- accurate counts in the 2010 census ed Way President and CEO ton, Nashville, Los Angeles and to remove capital barriers to busi- Michael Brennan said. Columbus, Ohio, are higher than in ness investment in those areas. Ultimately, a lot of what gets done metro Detroit, she said. Ⅲ Invest in education and re- in implementing the top recommen- In metro Detroit, a one percent- design the adult educational system dations for reducing poverty is go- age point decrease in the poverty to lower costs and serve adults bet- ing to depend on policymakers, said level could yield $396 million an- ter. Emphasize literacy gains for the Lou Glazer, president of Ann Arbor- nually in public benefit program lowest 20 percent income bracket. based Michigan Future Inc. savings, Coletta said. Ⅲ Provide training for middle- Sherri Welch: (313) 446-1694, CEOs for Cities plans to share skill jobs to move people out of [email protected] Got Bernstein: AG post ripe for ‘battles’ Ethos? ■ From Page 3 4th Annual most of his caseload is as head of its “You wouldn’t have 18 lawyers rience and ideology as a plaintiff’s EMU Ethos Week public services division, which gen- and a total staff of about 50 people at trial attorney. March 15-19 erally pursues nonmonetary results the firm if you’re just doing a busi- “Richard is a fine person and at- Capstone Lunch March 19: in litigation or negotiation with ness of all referrals,” Bernstein torney, but his philosophy is far I governments or public universities. said. “You would just need a few left of the center among voters and EMU Student Center I “My father often teases me, that people in the office to answer the doesn’t work in any way for Michi- $35 general public I heaven forbid I should ever make phones.” gan,” Schuette said. “As a judge, I $5 EMU students money,” Berstein said. “The pub- Bernstein said he plans to use spent a lot of time on difficult deci- lic services division is losing thou- his experience to make attorney sions and previously held a leader- sands of dollars as a portion of the general’s office a better advocate. ship position in state government firm, and I typically don’t collect “The AG’s office is the most un- (as director of the Michigan De- fees, not even in fee-shifting where derutilized position in public office partment of Agriculture). He does- Keynote Speaker, For ticket information, the (other party, upon losing) today. It could do so much more n’t bring that same experience.” Robert Bobb, Emergency call 734.487.2282 Financial Manager, might pay a fee for our costs.” than it does now,” Bernstein said. Bishop, who was a Crain’s 40 un- or visit cob.emich.edu Bernstein, who is blind, in partic- “So often the attorney general der 40 honoree along with Bern- Detroit Public Schools ular has focused time and effort position is used as a stepping stone stein in 2006, also assailed the De- pursuing access on behalf of the dis- for either Democrats or Republi- mocrat’s background in a personal abled. cans looking for (election to) other injury law firm. A notable victory came in 2008 on political positions. So when “I know the Bernstein family, behalf of Michigan Paralyzed Veterans, they’re in that office, they get en- and I have respect for them, but if requiring the University of Michigan gaged in more of the cosmetic bat- someone approaches that office to comply with the Americans with tles and challenges. I’m looking to from a background of working on Disabilities Act to make Michigan take on its real battles.” only one side of the law, as a plain- Stadium more accessible to wheel- Among the issues Bernstein tiff’s attorney, it will not be re- chair users as part of its recent ma- wants to tackle are reforms to the ceived well,” he said. jor addition and renovation. nursing home and elder care indus- “In the attorney general’s office, Legal sources at plaintiff and de- try to improve quality of life for se- you need experience and knowl- fense firms told Crain’s last week niors, as well as cracking down on edge on all aspects of the law, as that the firm likely generates at online identity theft, sex offenders well as working within govern- least 1,500 queries per year from and child pornography. He also ment and managing and balancing prospective clients based on call wants to use the office to target cor- a (departmental) budget.” volumes to similar firms that ad- porate malfeasance, improve work- Bernstein points to his elected vertise in Southeast Michigan. place safety and seek accountability post as board chairman at WSU, The firm also has a reputation for in the health care industry. which has an annual budget of referring 80 percent or more of “Most corporations are run by more than $500 million and more callers to outside counsel, meaning good people trying the best they than 5,000 full-time employees as a it could generate hundreds of cases can. A few are not,” he said. “I’m public university. per year for other firms in return not trying to cast a wide net. I want Bernstein said if nominated he for a referral fee — up to one-ninth to focus on those who aren’t doing would take a sabbatical from UM, of the award a case collects on con- what they need to do, without vilify- where he is an adjunct professor tingency, though referral fee agree- ing those who do. We want to make teaching a social justice course. ments vary among firms. it a society where a good business He also will take a leave of ab- Bernstein wouldn’t discuss owner, doing what they have to do, sence from the law firm if he wins specifics, but Matt Friedman, part- isn’t at a disadvantage to those who election in November, and his ner at Farmington Hills-based Tan- don’t follow the rules.” eight-year term on the WSU board ner Friedman Strategic Communica- Schuette said he expects Bern- of governors will expire at year’s tions and a spokesman for the firm, stein to be the Democratic Party end, before he would assume office. said its own attorneys handle a nominee, and that he will be vul- Chad Halcom: (313) 446-6796, majority of the cases it generates. nerable on both his political expe- [email protected] 20100308-NEWS--0024-NAT-CCI-CD_-- 3/5/2010 6:12 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS March 8, 2010 Levin’s new role could add clout for Michigan Merrill Lynch’s Stulberg again BY AMY LANE Southeast Michigan and beyond. ing field on trade.” named state’s top wealth adviser CRAIN’S DETROIT BUSINESS “I think when they’re talking Chuck Hadden, president and about tax issues, it will be particu- CEO of the Michigan Manufacturers U.S. Rep. Sander Levin’s naming as larly helpful, because of their abili- Association, said he hopes to see dis- Robert Stulberg, who works in Jacobs, Morgan Stanley Smith acting chairman of the U.S. House ty to focus on manufacturing or oth- cussions on issues that can help the Bloomfield Hills office of Barney, Bloomfield Hills; No. Ways and Means er kinds of businesses that are so manufacturers be more competi- Merrill Lynch, has been named 12, William Messner, Morgan Committee poten- heavily concentrated in Michigan,” tive, such as corporate tax rates. the top wealth adviser in Michi- Stanley Smith Barney, Birm- tially gives Michi- said Sarah Hubbard, senior vice Ballenger cautioned against high gan for the second straight year ingham. gan more clout president of government relations expectations and said Levin would by Barron’s in its annual list of No. 13, Michael Holycross, and its issues at the Detroit Regional Chamber. face criticism if he “would charge America’s top 1,000 advisers. Morgan Stanley Smith Barney, more prominence. For example, a key issue to busi- right into things, with plans … that Stulberg has nearly $2 billion Birmingham; No. 14, John Vigi, And for more nesses in Southeast Michigan and would benefit Michigan. I think he’s under management. Merrill Lynch, Auburn Hills; than one reason. throughout the state is revival of re- got to kind of tread gingerly for the Fifteen of the top 25 advisers No. 17, Gary Jbara, Morgan Stan- With Levin, D- search and development tax credits time being.” in Michigan are in Southeast ley Smith Barney, Farmington Royal Oak, as that expired at the end of 2009. Ballenger said there is also uncer- Michigan. The other 14 are: No. Hills; No. 18, Mark Rogers, Mor- 3, Dana Locniskar, Merrill gan Stanley Smith Barney, chairman and U.S. Levin Megan Brown, Gov. Jennifer tainty as to whether former commit- Rep. David Camp, Granholm’s deputy press secretary, tee Chairman Charlie Rangel, D- Lynch, Detroit; No. 4, John Kul- Farmington Hills; No. 19, R-Midland, as minority ranking said the leadership posts are impor- N.Y., will return at a later point — havi, Merrill Lynch, Farming- Martha Adam, Morgan Stanley member, both leaders of the commit- tant “because of the broad scope of and it’s also an election year in ton Hills; No. 5, Stephen Fox, Smith Barney, Troy; No. 22, tee are from Michigan — a position issues the committee deals with, in- which Levin faces a challenge. Morgan Stanley Smith Barney, David Boor, UBS Financial Ser- that Inside Michigan Politics editor cluding economic development, tax But, Ballenger said, “I think that Troy; No. 6, Frank Migliazzo, vices, Farmington Hills; No. 24, Bill Ballenger said “is really remark- incentives to help companies grow if he can secure this chairmanship Merrill Lynch, Auburn Hills; Paul Hack, Raymond James, able” and that others hope will be and create jobs, critical safety net in the long term, it bodes well for No. 8, Don Gill Jr., Merrill Lynch, Farmington Hills. beneficial on issues important to issues and helping to level the play- Michigan.” Bloomfield Hills; No. 10, Thomas — Tom Henderson Nelson: Film studio investor no stranger to complicated deals ■ From Page 1 anyone involved in the deal, was to will be able to look at how we have be paid by Sept. 21. done this.” That deadline was extended to Cause of July fire at Nelson home ‘undetermined’ The project has also had set- April 30, according to sources fa- backs, such as a flood from a rup- miliar with the deal. If the full bal- Investigators remain baffled by (seven years) for arson is exhaust- The house was insured for tured pipe and a change in in- ance is not paid, the property can the cause of a fire that destroyed ed,” he said. “But until such time more than $21 million through vestors as developer Gary Sakwa go back to Motors Liquidation Co., most of Linden Nelson’s $4.9 mil- as we receive any new informa- American International Group Inc. left the group. Asked for a com- the holding company to dispose of lion home last summer. tion, the cause is undetermined. Nelson experienced a previous ment, Sakwa former GM property. The Bloomfield Township Fire De- We are not currently expecting to fire in March 1998 when the Bev- said, through The deal is being handled by partment and Oakland County Sher- receive new information.” erly Hills headquarters of Ha-Lo his secretary, Southfield-based AlixPartners L.L.C., iff’s arson investigation unit have Investigators found burn pat- Creative Marketing Inc., where Nel- that “he moved which represents the disposition never determined a cause for the terns in the floor of a teen lounge son was CEO, was severely dam- on to another of land held by Motors Liquidation July 18 blaze at the 23,000-square- in the house that “resembled pat- aged in a blaze ruled accidental deal. There is Co., said AlixPartners director of foot house on Wing Lake Road. terns made by ignitable liquids,” by the Oakland County Sheriff’s nothing to say.” communications Tim Yost. He de- The case remains open, but it has however an Oakland County fire arson investigation unit. Rakolta said clined to comment on any terms of been inactive for several months, dog trained to smell accelerants, The report on that incident cit- that even if the deal. said township Fire Marshal including vegetable oil, found ed another fire at the building the there is a “1 per- Michael McCully. nothing at the scene, and a labora- year before when an outside trash cent chance” Rakolta “The case will remain open at tory analysis of the burn patterns compactor ignited. that the project Business history least until the statute of limitations also found no ignitable fluids. — Chad Halcom is not financed by April 30, it is Complex corporate issues are only because paperwork is still be- not a new concept to Nelson. as CEO, bought the original Cre- In 2000, Nelson purchased the Nelson also was involved with a ing processed due to the many gov- After founding the Creative Con- ative Concepts division of Ha-Lo former Stanley Door building at real estate development in North ernmental entities involved. cepts in Advertising Inc. marketing out of bankruptcy for $8 million. 1225 E. Maple in Troy. The 183,000- Las Vegas, announced in 2006. He In addition to the $23 million to company in 1978, Nelson began The Troy-based business entity square-foot building was leased to purchased 160 acres of land for the $28 million to be approved by Oak- growing his firm. He hit pay dirt in was generating $100 million in an- Irvine, Calif.-based Saleen. Howev- Desert Star project, a 1.2 million- land County, the financing also will the 1980s when he sold Ford Motor nual sales. er, Saleen moved out, leaving the square-foot retail, dining and enter- include $5 million from the in- Co. the idea of a detachable key In 2003, Nelson stepped down as building vacant. tainment center. Leasing of the pro- vestors, $3.8 million of Infrastruc- ring for valet parkers. CEO of the Beanstalk Group, but In November 2009, a deed in lieu ject was to be done by Bloomfield ture Recovery for the city of Ponti- By 1996, Creative Concepts had held his position on the board. of foreclosure was filed with the Oak- Hills-based Taubman Centers Inc. ac, $15 million in federal New distributed 300,000 products to Asked if Nelson remains on the land County Register of Deeds, and the After receiving preliminary ap- Markets Tax Credits and $11.1 mil- 20,000 customers with annual sales board, Beanstalk manager of busi- property went back to the lender, proval for the development, the de- lion in Michigan Film Infrastruc- of $568 million — at the time, the ness development and marketing Lansing-based Jackson National Life. velopers did not seek a final site ture Tax Credits, according to the largest promotional products Lindsey Schiffman said by e-mail, Nelson also planned a mixed-use plan or request building permits, project’s application filed with Oak- wholesaler in the world, according “We are unable to answer this development at the southwest cor- said Juliet Casey, public informa- land County. to past Crain’s articles. That year, question.” ner of John R and Big Beaver roads, tion specialist for the city of North Since the Pontiac project was Nelson sold his business to Niles, with a CVS store to anchor the pro- Las Vegas. announced, a film infrastructure Ill.-based Ha-Lo Industries for 4.4 mil- ject, a senior housing project by “That was in 2006, and there credit also has been issued to the lion shares of stock, valued at the Real estate projects McLean, Va.-based Sunrise Senior Liv- were a lot of things planned at that Wonderstruck Studio project, which time at $65 million. Based on those Unlike some executives who ing Inc. and a retail strip center sur- time,” she said. has been postponed. Also, it has achievements, Nelson was named a cash out on their first career and rounding both, said Mark Miller, been issued to the Hangar 42 studio Crain’s 40 Under 40 in 1998. fade away to lives of golf and sun- assistant city manager of Troy. project in Grand Rapids, which Nelson stayed on with Ha-Lo as shine, Nelson parlayed the money The CVS was built, but the senior Film project is different opened last week. CEO, and the company was re- and local real estate from his 25- housing and retail components While some of Nelson’s past pro- Rakolta got involved in the pro- named Ha-Lo Creative Concepts. In year marketing career into a port- were not, Miller said. In a state- jects were high-profile, they don’t ject to learn how a studio is built, 2000, Ha-Lo formed a joint venture folio of real estate investments. ment, Sunrise would say only that it compare to the visibility of the to then export his expertise to oth- with Ford called iDentify to license Nelson controls the ownership discontinued the project due to film studio in Pontiac — an- er parts of the country. Ford products and then offer ser- entities for three former Ha-Lo “challenging market conditions.” nounced by Gov. Granholm in her But, he said, the most com- vices to other companies. buildings along Maple near the To the west on Maple, Nelson 2008 State of the State address as pelling reason to be involved with In May 2001, Nelson bought out border of Troy and Birmingham. told Crain’s in 2007 that he had part of the Michigan’s budding the project is to create jobs for the Ha-Lo interest in iDentify to The 53,000-square-foot building at four letters of intent for a retail film industry. Michigan. own one-third of the venture with 2100 E. Maple, in Birmingham, is and office development on 17 acres Rakolta, an investor in the stu- Rakolta said that with the Ford as the majority owner. Sever- leased with seven companies listed adjacent to the Troy Transit Cen- dio, said that while he’s not amount of time and money he is al months later, iDentify bought on the building’s directory of ten- ter project on the border of Troy pleased with the time it has taken spending, along with Nelson and out the New York-based Beanstalk ants. Likewise, he bought a 12,000- and Birmingham. He said the for- to get the project under construc- Taubman, the project will be com- Group, with Nelson becoming CEO square-foot building in Aspen, mer Ha-Lo property would be used tion, there is a simple reason: It is pleted. and minority owner. Colo., in 2008, which is fully occu- for the development. incredibly complicated. “And I will do everything in my Ha-Lo — with Nelson no longer pied, according to data from the Miller said the Transit Center is “This has never been done be- power to make sure this is com- at the company — filed for bank- Bethesda, Md.-based real estate re- progressing but said there were fore,” he said. “We’re creating the pleted,” he said. ruptcy in the fall of 2001. search firm CoStar Group. Other never plans filed for Nelson’s re- path to a closing on a project like Daniel Duggan: (313) 446-0414, In 2002 Beanstalk, with Nelson holdings have not fared as well. tail project. this. From now on, other projects [email protected] 20100308-NEWS--0025-NAT-CCI-CD_-- 3/5/2010 5:31 PM Page 1

March 8, 2010 CRAIN’S DETROIT BUSINESS Page 25 Autism: Businessmen seek funds for support center www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] person’s ability to communicate offered his marketing services, er to coordinate services. companies don’t pay for supple- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- and interact with others. Annual Meador said. “This is a great idea that every- mental care.” 0460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 446- treatment costs can range from A number of health care one is supporting because there Meador said autism treatment 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette $30,000 to $50,000 per year. providers also have offered assis- are plenty of kids around for all of can save schools more than Smith, (313) 446-1622 or [email protected] “Steve and I are appealing to the tance, including the University of us,” Allen said. “The alliance is $200,000 per child over their school ENTREPRENEURSHIP EDITOR Michelle Darwish, business community and local Michigan, Wayne State University, stimulating a discussion to do an careers. (313) 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 foundations to help us get started,” Oakwood Healthcare and William analysis of existing programs that D’Arcy said legislation is expect- or [email protected] Meador said. “The support has Beaumont Hospitals, D’Arcy said. will help identify gaps in ser- ed to be introduced in the Michigan ASSISTANT NEWS EDITOR Jeff Johnston, (313) 446-1608 or [email protected] been very positive. They want to Other companies that have vices.” Senate sometime in April, which is DATA EDITOR Anne Marks, (313) 446-0418 or know what they can do to help.” pledged future funding include Henry Ford’s autism center, Autism Awareness Month, by Sen. [email protected] WEB EDITOR Christine Lasek, (313) 446-0473, Of the $450,000 already raised, Masco Corp., Kelly Services and the which opened in July 2008, primar- Randy Richardville, R-Monroe. A [email protected] Hudson-Webber Foundation provided Community Foundation for Southeast ily is designed to provide diagnos- similar bill, which already has WEB DEVELOPER Steve Williams, (313) 446- 6059, [email protected] $125,000, DTE Energy Foundation do- Michigan, D’Arcy said. tic services for children. More been approved in the House, would EDITORIAL SUPPORT Robertta Reiff (313) 446- nated $100,000 and other individu- Nearly 14,000 children in Michi- than 300 children have been evalu- mandate insurance coverage of 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- als, including Steve and Deborah gan, or about 1 in 150, were diag- ated and referred for services ei- autism in group policies for all in- 1687 TIP LINE (313) 446-6766 D’Arcy, contributed various nosed with autism in 2008, up from ther in the Henry Ford system or surers with an annual cap on bene- REPORTERS amounts. The D’Arcys contributed 7,259 in 2003, said the Michigan Pub- to Beaumont Hospital or Chil- fits. Ryan Beene: Covers auto suppliers, steel, higher $100,000, and Frank and Carol Hen- lic Schools Autism Prevalence Report. dren’s Hospital, she said. Over the past two years, 10 education and Livingston and Washtenaw counties. (313) 446-0315 or [email protected] nessey donated $25,000, Meador “It is almost at an epidemic lev- Mike Wooley, CEO of the Detroit states have enacted legislation to Daniel Duggan: Covers retail, real estate and said. The alliance’s goal is to raise el,” Meador said. “We don’t know Institute for Children, said the al- require insurance companies to hospitality. (313) 446-0414 or $2 million this year, Meador said. the cause or the cure, but with ear- liance will fill an advocacy void in cover autism treatments. [email protected] Jay Greene: Covers health care, insurance and the “We want to get the groups out ly identification and therapy, half Southeast Michigan. The institute The Autism Alliance board of di- environment. (313) 446-0325 or there doing things to work more of the children can move to normal provides diagnostic and behav- rectors includes D’arcy, chairman; [email protected]. Chad Halcom: Covers law, non-automotive closely together and provide these function and many more improve ioral services for children at its Meador, secretary-treasurer; manufacturing, defense contracting and Oakland services in a coordinated way,” said towards living a full, productive three centers. Lerch; Wooley; Colleen Allen, direc- and Macomb counties. (313) 446-6796 or [email protected]. D’Arcy. “We don’t want to re-create life.” “I don’t see any conflict at all. tor of the Henry Ford Autism Center; Tom Henderson: Covers banking, finance, something that already exists.” Last year, Blue Cross Blue Shield We can coexist and complement David Breen, market managing technology and biotechnology. (313) 446-0337 or [email protected]. Several other companies have of Michigan began offering treat- each other,” Wooley said. partner at PricewaterhouseCoop- Nancy Kaffer: Covers small business, the city of offered in-kind support to help the ment coverage for children, mostly Wayne County also has agreed ers; Diane Chugani, director of the Detroit, Wayne County government. (313) 446- alliance begin its work to coordi- preschool age, diagnosed with to work with the alliance to devel- translational imaging lab at Chil- 0412 or [email protected]. Bill Shea: Covers media, advertising and nate services among autism autism, through group policies. op programs, coordinate services dren’s Hospital of Michigan; Bob marketing, entertainment, the business of sports, providers in Michigan. The coverage is available only for and lobby for state legislative Gigliotti, a tax principal with and transportation. (313) 446-1626 or [email protected]. For example, Henry Ford Health children ages 2 to 5. Meador said changes, said Lynn Ingram, senior Rehmann Group; Debora Matthews, Nathan Skid: Multimedia reporter. Also covers the System in Detroit has donated of- the plan is a good first step. projects manager. CEO of the Children’s Center of food industry. (313) 446-1654, [email protected]. fice space and equipment at One Colleen Allen, director of Henry “We see this as an incredible op- Wayne County; Marn Myers, CEO of Sherri Begin Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] Ford Place. DMC and Children’s Ford’s Autism Center and Develop- portunity to help Wayne County the Judson Center; and Joel Pearl- LANSING BUREAU Hospital of Michigan have provided mental Disabilities, said the Autism families impacted by autism,” said man, co-founder of Image One Corp. Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- some personnel support; and Jim Alliance will help encourage county Executive Robert Ficano. and TonerForAutism.com. 5355, FAX (517) 371-2492, [email protected]. or Berline, president of the Bloom- autism providers to “break down “Our schools are overwhelmed by Jay Greene: (313) 446-0325, 115 W. Allegan, Suite 220, Lansing 48933. field Hills-based Berline Group, has the competition” and work togeth- the numbers, and most insurance [email protected] ADVERTISING

ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Jeff Anderson, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, Bridges: Kimberly Ronan, Cheryl Rothe, Dale Smolinski Could both projects come tumbling down? CLASSIFIED SALES (313)-446-0351 MARKETING MANAGER Irma Clark ■ From Page 3 MULTIMEDIA MANAGER Alan Baker, (313) 446- 0416 or [email protected] The Detroit-Windsor border, more capacity, and the DRIC pro- It’s that share, and Michigan’s fy the project, which also was re- EVENTS MANAGER Nicole LaPointe which includes the bridge, a tun- ject has the best chance of being budget troubles that could trickle quired by the budget compromise. MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford nel and ferries, is the busiest in built because both countries down into less-than-favorable con- The study showed border traffic CIRCULATION Candice Yopp, Manager. North America and carries a quar- agree,” she said. struction bond ratings, that has fu- will increase by 2035. MARKETING COORDINATOR Kim Winkler ter of all U.S. trade with Canada, Hubbard not- eled criticism of DRIC in Lansing. Messages were left for Cropsey PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, estimated at about $130 billion. ed that the pub- DRIC’s leading critic in the state and Senate Majority Leader Mike (313) 446-0450 Car and truck traffic has been in lic-private part- house is Sen. Alan Cropsey, R-De Bishop, R-Rochester, seeking com- CUSTOMER SERVICE decline since 2001, but state and nership Witt, who has repeatedly called the ment. MAIN NUMBER: Call (888) 909-9111 or write Canadian officials say that will legislation intro- project a “boondoggle.” His posi- DRIC, including separate but re- [email protected] eventually turn around. The busi- duced last May, tion as vice chairman of the Senate lated Ontario road work, has a to- SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. ness community also prefers addi- and sitting in the appropriations subcommittee on tal price of about $5 billion, with a Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or tional crossing capacity, and On- state House transportation gives him influ- bridge itself at $1 billion, and the (888) 909-9111. tario officials want a new bridge, Transportation ence over the project’s fate. cost would be split among the SINGLE COPIES: (888) 909-9111. rather than a second Ambassador Committee, is A compromise authored by agencies. The project would take REPRINTS: (800) 290-5460, ext. 125; (717) 399- 1900, ext. 125; or ashley.zander@theygsgroup Bridge span into Windsor because one of the key el- Cropsey’s committee last fall on 48 to 52 months to finish. .com. Hubbard TO FIND A DATE A STORY WAS PUBLISHED: of traffic snarl concerns. ements needed MDOT’s $4.5 billion fiscal year 2010 The bridge would be financed (313) 446-0367 or e-mail [email protected]. Sarah Hubbard, vice president for DRIC to move forward. budget restricted the agency to with bonds repaid from toll rev- of government relations at the De- Such legislation is needed to al- $2.5 million spending on DRIC for enue. The inspection plaza likely CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. troit Regional Chamber, said that be- low the bridge to be built by a pri- the fiscal year ending in October. will be paid for by the federal gov- CHAIRMAN Keith E. Crain cause the restrictions on MDOT vate company, taking some of the It also required MDOT to submit ernment’s General Services Adminis- PRESIDENT Rance Crain regarding DRIC were language in financial onus off Michigan, she a proposal by May 1 to the Legisla- tration while cost of the inter- SECRETARY Merrilee Crain TREASURER Mary Kay Crain an appropriations bill, they expire said. While much of the funding is ture to build the bridge. Lawmak- change that links the bridge to I-75 Executive Vice President/Operations in October unless renewed. Her or- likely to come from the U.S. and ers will decide by June 1 if the would be split — 80 percent paid by William A. Morrow Group Vice President/Technology, ganization supports both bridge Canadian federal governments, agency is allowed to proceed with the federal government and 20 per- Manufacturing, Circulation projects, with a nod to DRIC. the state will be responsible for at the project. MDOT recently sub- cent by state and local govern- Robert C. Adams Vice President/Production & Manufacturing “We’ve always said we need least some share of it. mitted a new traffic study to justi- ments. Dave Kamis Chief Information Officer Paul Dalpiaz Corporate Circulation/Audience Development Director Kathy Henry G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Meadowbrook: Acquisition drove income growth EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) ■ 446-6000 From Page 3 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Since 1985, Meadowbrook has acquired 14 able, double-digit return on average equity re- workers’ compensation initiatives we launched is published weekly, except for a special issue the companies and is always looking for acquisi- sults,” Cubbin said. in 2009,” Cubbin said. “We anticipate the mar- third week of January, a special issue the fourth week of August, and no issue the third week of tions, Cubbin said. For 2010, Cubbin said Meadowbrook expects ket will remain competitive in 2010.” December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals Because of better performance in 2009 of fixed net operating income to range between $48.5 mil- Meadowbrook is a risk-management organi- postage paid at Detroit, MI and additional mailing income securities and the capital market, Mead- lion and $54.5 million and gross written premium zation that specializes in professional and trade offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation owbrook increased net income in 2009 to to range between $790 million and $815 million. associations and small to medium businesses. Department, P.O. Box 07925, Detroit, MI 48207- $52.7 million, or 92 cents per share, from Meadowbrook said achieving these numbers ProCentury is a specialty property and casual- 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2010 by Crain $27.4 million, or 61 cents per share, Cubbin said. would result in 85 cents to 95 cents per share of ty insurance holding company that specializes Communications Inc. All rights reserved. Reproduction or use of editorial content in any With a return on average equity of 11.2 per- income. in excess and surplus business. manner without permission is strictly prohibited. cent in 2009, “we are back on track for sustain- “We anticipate growth from the regional Jay Greene: (313) 446-0325, [email protected] 20100308-NEWS--0026-NAT-CCI-CD_-- 3/5/2010 5:43 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 8, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 27-MARCH 5

gion’s landmark luxury ho- Securities Inc. firms of running a $53 mil- tels that made the “Top 25 GM to reinstate The sale would shrink lion scam in which in- Matt Cullen Hotels” in the U.S. list by the Blackstone’s stake in vestors’ money was recycled travel guide Web site TRW from 39.9 percent to to pay off other investors. Tripadvisor.com. hundreds of 30.3 percent, according to a The case is pending. A strong customer ser- prospectus filed Monday vice emphasis is what the with the U.S. Securities and just joshing, Doubletree Hotel Detroit/Dear- dealerships, Exchange Commission. OTHER NEWS born’s manager credited for Ⅲ Michigan’s Office of Fi- the ranking. The 347-room OMPANY NEWS nancial and Insurance Regula- hotel took No. 11. report says C tion says it has uncovered workers coming “It was a surprise that Ⅲ Ann Arbor-based Aas- two metro Detroit Ponzi eneral Motors Co. is we made the list, but we’re trom Biosciences Inc. (Nas- schemes that allegedly preparing to rein- extremely proud,” said Kei- daq: ASTMD) reported bilked at least 180 investors state more than 580 n Monday, Detroit Potential is the key word. th Shopnick, general man- G Thursday that the company out of an estimated $16 mil- of the 1,160 dealerships that Free Press reporter In a March 1 press re- ager. has regained compliance lion. O Tom Walsh wrote that lease, Blue Cross said Shopnick said the staff have filed for arbitration to with the $1-per-share mini- Commissioner Ken Ross get their franchises back, Livonia-based Quicken Loans Loepp’s voluntary pay re- focuses on perfect service. mum threshold for contin- said Michael Winans Jr., a four sources familiar with Inc. planned to add an addi- duction amounted to 16 per- Staff and management held ued listing of its stock on member of the Winans the matter said. tional 600 or 700 employees cent of his potential earn- a small party for the honor the Nasdaq. gospel music family, used GM plans to send letters to the 1,700 the company ings in 2009. and plan to use the distinc- Ⅲ BAE Systems Inc.’s busi- connections in Detroit to dealers as soon as this plans to move downtown Loepp had a 23 percent in- tion in marketing efforts. ness operations in Sterling churches to get investors week that say the automak- this summer. crease in base pay in 2009 to Heights and Troy will file a and told them they could er intends to restore their On Thursday, Rock Ven- $1.12 million from $910,260 joint proposal with Los An- double their money in 60 franchises outside of arbi- tures Presi- in 2008, Blue Cross financial BITS & PIECES geles-based Northrop Grum- days. tration, Automotive News dent and reports show. His bonus and Ⅲ Four Southeast Michi- man Corp. for a multibillion- OFIR also alleged the reported sources as saying. COO Matt other compensation dropped gan entrepreneurs were dollar Ground Combat scheme was carried out by Cullen, GM will attempt to settle 39 percent to $640,330 from named among the 2010 En- Vehicle program, the com- Mark Carpenter of Ann Ar- speaking to or arbitrate with the re- $888,269. terprising Women of the pany announced. bor, who sold bogus oil the large maining dealerships, In fall 2008, the Blue Cross Year winners by Enterpris- Ⅲ Omnicom Group is bonds through a firm he crowd at which GM intends to wind board approved a consul- ing Women Magazine: Lori putting a number of former founded, TGBG Financial, the Down- down before November, tant’s recommendation that Blaker, president and CEO BBDO Detroit staffers back to direct investments to town Detroit the sources said. Loepp’s base pay package be of TTi Global, Rochester to work with the launch of Winans. Carpenter was em- Partner- Cullen increased 28 percent to Hills; Mindi Fynke, presi- a new retail-focused agency ployed by CUSO Financial Ser- ship’s annu- bring him on par with other dent and CEO, EHIM Inc., called Retail 3. Half the 52- vices and operated a CUSO al luncheon, called Walsh’s ON THE MOVE Blue Cross CEOs nationally, Southfield; Norma Wallis, person shop is made up of securities branch out of Ann story and those that fol- said Andy Hetzel, Blue Cross’ president and CEO, Liver- Ⅲ Pittsfield Township- former BBDO Detroit em- Arbor-based MidWest Finan- lowed “just rumors.” De- vice president of corporate nois Vehicle based Tecumseh Products Co. ployees, including Harold cial Credit Union from June troit Mayor Dave Bing also communications. Development/Wallis Techni- (NASDAQ: TECUA, Kobakof, president of Retail 2007 to October 2008. took aim at Walsh, saying The consultant recom- cal Center, Inkster; and TECUB) has named David 3 and former chief retail of- Ⅲ The American Society of that Quicken CEO Dan mended Loepp receive base Elise Benedict-Howard, CEO, Goldberg, president of David ficer at the shuttered shop Association Executives and Gilbert had had an “off-the- Goldberg Consulting, to its pay of $1.168 million in 2009. University Moving & Storage in Troy. the Center for Association cuff” conversation with a board of directors. Share- But the Blue Cross base pay Co. Inc., Farmington Hills. Ⅲ New York-based Ashke- Leadership announced that reporter that resulted in a holders will vote April 28 cut reduced that amount to Detroit-area finalists are nazy Acquisition Corp. has Detroit will host its 2015 splashy print story. on the appointment. $1.122 million. Finally, Catherine Juon and Linda Gi- hired Profit Increase Funding convention. Turns out Cullen, at least, Ⅲ The Southfield office rard, co-founders of Pure Inc. to find a buyer for nam- Ⅲ Potential visitors from was just joshing. Loepp’s 2009 year-end per- of Grubb & Ellis Co. has hired Visibility, Ann Arbor; and ing rights to Northland Cen- all over the country and Quicken will move an ad- formance bonus would have local retail broker Matthew Vickie Lewis, president and ter in Southfield and East- world later this year will be ditional 500-700 workers been $766,276, which would Swantko to the new position CEO, VMX International, De- land Center in Harper Woods, able to take a virtual tour downtown in the next year, have been a 5 percent in- of vice president, retail troit. Winners and finalists The Detroit News reported. of the Detroit Zoo through if the company can find crease over 2008. But Loepp group. He most recently will be honored at March Ⅲ Troy-based Champion Google Maps’ Street View. space, company representa- volunteered to reduce that was president and founding 17-19 event in Miami. Enterprises Inc. (Pink Sheets: The zoo was the top vote- tives say. And Cullen him- bonus amount to $486,000, partner of Source Real Es- ■ Commercial cleaning CJHBQ) has won court ap- getter among theme parks self said in an e-mail to down from the $727,000 he tate & Investment Co., a Mil- proval of the financial struc- franchisee LeNardo Oliver, and zoos around the coun- Crain’s that he thought received in 2008. ford-based boutique retail ture with which it will owner of the Coverall try in Google’s national Walsh’s piece was “great.” Overall, 50 of Blue Cross’ real estate firm. emerge from bankruptcy. Street View contest. Health-Based Cleaning Sys- top executives gave back Champion’s current Ⅲ The Dick Purtan Radio- tem Detroit Support Center, $1.2 million in merit pay and lenders, together with a thon held Feb. 26 raised Blues CEO reduces bonus was among the 2009 Fran- bonus cuts. Nonunion em- SUPPLIERS group of lead investors, $2.34 million during 16 Blue Cross Blue Shield of chise Owners of the Year ployees, about 4,150 of them, Ⅲ Livonia-based Tower will exchange existing debt hours to benefit the Salva- Michigan CEO Dan Loepp Award winners named by also gave back $7.5 million. Automotive L.L.C. filed plans under Champion’s pre-peti- tion Army Eastern Michigan took a mandatory 5 percent Boca Raton, Fla.-based Thursday to go public and tion and debtor-in-posses- Division’s Bed and Bread base pay cut in 2009 and vol- franchisor Coverall. Oliver Doubletree makes ‘Top 25’ raise up to $100 million in sion senior secured credit Club. That’s up from the untarily gave back a portion won in the small franchise an IPO, according to a U.S. agreements for equity in $2.26 million raised last of his potential bonus. It wasn’t one of the re- category. Securities and Exchange Com- the new company and a $40 year during the telethon mission filing. Cerberus Capi- million senior secured five- aired on WOMC FM 104.3. tal Management L.P. will year note. continue to control Tower, Along with the conver- holding more than 50 per- sion, the court also ap- OBITUARIES cent of the common stock. proved a deal for a group of Ⅲ Ron Banks, founder and Tower Automotive will investors to take a $50 mil- singer of the Detroit vocal EST FROM THE LOGS be renamed Tower Interna- lion stake in the company. group the Dramatics, died B B Ⅲ Blue Cross Blue Shield of tional Inc. before the stock Thursday of a heart attack. READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS offering. No date has been Michigan reported net in- He was 58. set for the IPO. come of $12 million for 2009 Ⅲ James Compo, founder An icy conversation Slater tackles safety issues Ⅲ The largest sharehold- on revenue on of $21.6 bil- of James D. Compo Inc. con- er of Livonia-based TRW Au- lion, compared with a net struction company, died You could have Toyota has tapped tomotive Holdings Inc. loss of $145 million in 2008 Feb. 25 of liver cancer. He heard“ a pin drop at the 1977“ Eastern Michigan (NYSE: TRW) and top exec- on revenue of $21.2 billion. was 75. ICSC networking event University graduate utives at the supplier are Ⅲ Dawn Spencer, who last week when retail Rodney Slater to lead a looking to unload 11 mil- held sales and promotions broker Alex Bieri asked a panel advising its North OURTS lion shares of stock. C executive positions with panel of speakers a American affiliates on Ⅲ question about the over- quality and safety … At Automotive Investors L.L.C., A grand jury is investi- WJLB-FM and WVMV-FM and speculated idea of a new EMU, Slater left his mark which is controlled by the gating Southfield-based BBC GlobalHue, and who founded Red Wings arena in on the gridiron and in the Blackstone Group L.P., the Equities and Bravata Financial the AugMe Foundation to Detroit. classroom. New York-based invest- Group, the Associated Press provide breast prosthetics ” ” ment firm, is selling about reported. Last summer, the to uninsured and underin- Reporter Dan Duggan’s blog on commercial real estate Managing Editor Andy Chapelle’s blog on business in 10 million shares in the of- Securities and Exchange Com- sured women, died of can be found at www.crainsdetroit.com/duggan the Ann Arbor area can be found at fering, which is being un- mission filed a lawsuit accus- breast cancer Feb. 23. She www.crainsdetroit.com/chapelle derwritten by J.P. Morgan ing John Bravata and his was 55. DBpageAD.qxd 2/19/2010 10:24 AM Page 1

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