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www.crainsdetroit.com Vol. 24, No. 43 OCTOBER 27 – NOVEMBER 2, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Beyond Plante & Moran elects Wal-Mart rings up new managing partner Southfield-based Plante & Moran P.L.L.C. is expected politics to announce today that Gor- don Krater has been selected to replace William Hermann Business wants as the firm’s managing partner, effective July 1. area market share Krater, 50, was elected fundamental change last week at the annual meeting Region targeted for grocery expansion of the from whoever wins firm’s BY NANCY KAFFER 225 part- BY AMY LANE CRAIN’S DETROIT BUSINESS ners. CAPITOL CORRESPONDENT “I’m The game is on, and Wal-Mart Inc. is play- thrilled. LANSING — No matter which De- ing to win. Excited. mocrats or Republicans win office The Bentonville, Ark.-based retailer’s Hon- Nov. 4, they’ll still face a state strug- aggressive grocery expansion plans have ored,” gling with job losses and budget con- paid off. cerns, and a business community In the last year, Wal-Mart has added six Krater Krater told charged up about reducing the bite of new groceries to its metro area lineup by Crain’s. He joined the firm the new Michigan Business Tax. opening new stores or expanding existing in 1980, made partner in That means business as usual isn’t stores to include grocery departments. 1991 and has been group good enough anymore, for Michigan’s The discount giant has quadrupled its COURTESY OF WAL-MART managing partner in employers or its economy. share of the metro area’s grocery market, charge of industry special- “Our elected leaders at every level capturing 11.8 percent of the area’s market WAL-MART’S SHOPPING CART izations for seven years. have to understand that business is share in October this year, compared to 2.6 Hermann, 57, who joined important to the future of our state. percent in July 2007, according to the Octo- Wal-Mart is gaining market share as it aggressively expands its grocery business. It has quadrupled its share of the Plante & Moran in 1971 and And they re- ber issue of Progressive Grocer magazine, a Detroit area’s grocery market since last July, and it plans to became a partner in 1981, ally need to trade publication that covers the grocery industry. open another eight stores with grocery departments in the has served two four-year do everything Detroit area next year. terms as managing partner. they can to And Wal-Mart isn’t done yet. He said he hopes to remain improve our Another 11 stores — eight in the Detroit with the firm for three or business cli- area — are scheduled to open or add a gro- cery section next year, said Nick Infante, a 2.6% 11.8% four more years and is ex- mate, without Wal-Mart grocery sales Wal-Mart grocery sales regard to par- Lansing-based senior manager of public pected to be named before MORE ELECTION in July 2007. in October 2008. year’s end as the managing tisan poli- Proposals 1, 2: The tics,” said See Wal-Mart, Page 42 partner of one of the firm’s arguments for and business units. against. Pages 38, 39. Sarah Hub- Plante & Moran is the Oakland County: Race bard, vice nation’s 11th-largest public for county executive. president of accounting and advisory Page 40. government firm, with offices in Michi- relations at gan, Illinois, Ohio, Ten- the Detroit Re- nessee, Shanghai and Mon- gional Chamber. Merger could empty buildings terrey, Mexico. It has As Crain’s reported last week, 95 about 1,650 employees, up percent of Crain’s subscribers polled about 100 from a year ago. in a new survey said they were some- Detroit, Auburn Hills Under Hermann, the firm what or very dissatisfied with Michi- opened its overseas and gan’s economy, and 57 percent said Tennessee offices and ac- they expect the state economy to get fear real estate vacuum quired one CPA firm in worse. Flint and two in Chicago. So what does business look for out BY DANIEL DUGGAN Group. The company likely will of races like the state House, where CRAIN’S DETROIT BUSINESS There are few answers to decide whether to open an Democrats are expected to widen what will happen with a con- office in Mumbai, India, their hold on the chamber? It’s an unlikely solidation or merger within the next few months. Lawmakers need to rise beyond en- scenario. THE IMPACT involving Chrysler, More expansion plans like- trenched party positions, Hubbard But if Chrysler General Motors Corp. Suppliers: Some ly will call for growing a said. L.L.C. were to give up and possibly Nissan- all of its space in its see devastation. southern footprint and ex- “We’re way beyond partisan poli- Page 43. Renault. But one an- Auburn Hills head- panding in the Midwest. tics, right now with this economy. Ad agencies: swer, however, is “We can be every bit as And people who turn it into that kind quarters building, Uncertainty fills clear: any consolida- dominant in Chicago and of discussion aren’t helping things,” the city’s office va- air. Page 44. tion would cause Ohio as we are here,” he she said. “The problems we’re facing cancy rate would go great harm to the in the state are so dire, the solutions from 3 percent to 62 area’s real estate said. If GM were to move into the Chrysler — Tom Henderson have to go far beyond political par- percent, according to a market. headquarters in Auburn Hills, Detroit’s Crain’s analysis of data from office vacancy rate would increase from “It would be a disaster for See This Just In, Page 2 Bethesda, MD-based CoStar See Election, Page 41 30.5 percent to 46.5 percent. See Merger, Page 44

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NEWSPAPER growth, Page 27 good for Michigan, Page 3 20081027-NEWS--0002-NAT-CCI-CD_-- 10/24/2008 5:53 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 27, 2008

The university’s board of re- Herbert Tyner is president of nomic Development Corp., the Clark named marketing THIS JUST IN gents last week approved spend- Hartman & Tyner Inc., a South- state Department of Labor and Eco- ing another $231 million to add field-based developer. nomic Growth, the Michigan Works! manager at Crain’s ■ From Page 1 84 private patient beds, two mag- — Jay Greene Association and other agencies. Irma Clark has been named netic resonance imaging units, “It’s an attempt to get started Alda, Goodman to star in film an operating room and an inter- now, and try to do something marketing manager for operative magnetic resonance Wunderlich signs lease for proactive and see if we can help Crain’s Detroit Business. produced in metro Detroit imaging operating room suite. Birmingham office space with anything,” Patterson said. Before joining Crain’s, Clark, 42, worked for several A fantasy-horror film de- The 1.1-million-square-foot The group agreed to form Marking its entry to Michigan, leading marketing companies scribed as a high-end indepen- hospital will open in fall 2012. committees on issues like talent Memphis-based Wunderlich Securi- in their lo- dent production starring Alan The operating room MRI will retention and workforce devel- ties Inc. has signed a lease for of- cal offices, Alda and John Goodman is sched- allow neurosurgeons to see the opment, and stabilization in lo- images from an MRI scan while fice space in Birmingham. cal communities. At least one including uled to begin filming next spring The investment firm has of- they are operating. committee assignment has been Digitas, in metro Detroit. fices in five states. Wunderlich — Jay Greene offered to Richard Blouse, presi- Mullen and Birmingham-based Michi- leased 8,100 square feet of space gan/Hollywood Production Services dent and CEO of the Detroit Re- Carlson at 260 E. Brown St. gional Chamber, Patterson said. Inc., owned by Bob Krausmann, is Unival, Microsoft sign deal CEO Gary Wunderlich said “the Marketing the executive producer of “The The state is expected to take the Group on Unival Inc., an Ann Arbor- financial turmoil going on right lead in future strategy sessions. Whispers.” now provides a lot of opportuni- projects Krausmann declined to say based information-technology Other economic development ranging ties for a firm like ours.” teams, educational institutions how much the film will cost, but and health care services compa- from Web ny, has signed a contract to pro- The landlord is an ownership and defense industry agencies Clark said it’s been approved for Michi- marketing vide services to Microsoft’s on- group led by the principals of also are invited to take part. gan’s 42 percent movie rebate. to specific marketing projects line personal health record Broder & Sachse Real Estate Ser- — Chad Halcom Preproduction and location aimed at women and minori- system called HealthVault. vices Inc. CB Richard Ellis was the scouting begin Nov. 13, and film- ties. Microsoft is developing the broker. ing is expected to begin in ORRECTIONS In her new role, Clark will March for a 2009 release. Stage system to allow people to collect, — Daniel Duggan C manage marketing and sales filming will be done in Livonia. store and share information on- Ⅲ A story on the front page of promotion for Crain’s print The film will be directed by line. The contract is open-ended Government leaders plan the Oct. 13 issue incorrectly said Joel Bender and produced by Los and does not have a dollar value. there were three owners of the and online products as well as Angeles-based Rosen Bender Inc. — Jay Greene Chrysler response team Doubletree Guest Suites Fort events. A U.S. Army veteran, she’s — Bill Shea Talks of a possible merger be- Shelby hotel project. There are tween Chrysler L.L.C. and General four owners of the project. a resident of Harrison Town- Beaumont gets $5M gift ship. Her community experi- Mott hospital to grow Motors Corp. have several state Ⅲ A story on Page 1 of the Oct. Suzanne and Herbert Tyner of and local agencies talking about 20 edition cited an incomplete ence includes a stint on the The $500 million C.S. Mott Chil- Bloomfield Hills have pledged a a response strategy if the com- location for the Gray Street Af- board of directors at Mary- dren’s Hospital and Women’s Hospi- $5 million gift to establish the panies make a decision. fordable Housing project. It is grove College in Detroit. tal, under construction on the Suzanne and Herbert Tyner Pedi- Oakland County Executive L. located between Gray and Clark has a bachelor’s de- campus of the University of Michi- atric Emergency Center at William Brooks Patterson confirmed last Springle streets, north of gree in business administra- gan medical campus in Ann Ar- Beaumont Hospital in Royal Oak, week his office held a meeting Kercheval and south of Vernor tion-marketing from Daven- bor, is expanding. Beaumont said Friday. with leaders of the Michigan Eco- Highway. port University.

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October 27, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S National City deal: ‘Exciting’ INDEX Reprieve: Nasdaq suspends its $1 a share rule, which helps Aastrom Strengthened bank called good for state THE NATIONAL CITY DEAL Biosciences avoid delisting. Page 4. Ⅲ The purchase: Pittsburgh-based PNC Financial BY TOM HENDERSON I will be proud to work for them. Services Group Inc. is buying Cleveland-based There are things we do really AND ARIELLE KASS National City Corp. for $2.23 a share, or about CRAIN’S DETROIT BUSINESS well that we’ll bring to PNC, and $5.2 billion in PNC stock, plus $384 million things they do really well that payable in cash to warrant holders. The proposed sale of Cleveland-based National they’ll bring to us,” he said. City Corp. to Pittsburgh-based PNC Financial Services “It’s exciting news,” said Ⅲ National City: National City has the second- Group, announced Friday, should help open up Brad Curell,who had been a highest number of branches of banks in Michigan, commercial lending in Michigan and is a good bank examiner for the U.S. Fed- with 272 as of June 30, according to the Federal first step for the recently approved federal finan- eral Reserve Bank in Chicago for Deposit Insurance Corp., behind Chase’s 297. cial bailout plan, say local banking authorities. nine years before joining the Ⅲ PNC Financial Services Group: PNC has 1,098 “This is a good thing,” said David Boyle, presi- Southfield office of UHY Advisors- branches in eight states, none in Michigan. PNC Healthy research: Area Boyle health care organizations dent and CEO of Troy-based National City Bank, Michigan Inc. in January to be consulting manager also operates 24 stock brokerage offices. are in the running for a Michigan. in its financial services practice. Ⅲ The new bank: The deal, expected to close by piece of a $7 million “I grew up in Pittsburgh and worked in the PNC “How does this impact Michigan? It’s taken a year’s end, will create the fifth-largest U.S. bank in research award from Tower when I was a young accountant. I know the Altarum Institute. terms of deposits, with $180 billion. Page 35. company well. It’s a very, very good company, and See National City, Page 43 Economic turmoil: Market roller coaster has stress levels rising in boardrooms and Medicaid HMOs cubicles. Pages 36, 37. These organizations appear in this week’s Crain’s Detroit Business:

Aastrom Biosciences ...... 4 create barriers Altarum Institute ...... 35 Alcos Inc...... 29 Ameriprise Financial ...... 16 Amherst Partners ...... 37 to medications, Aon Group ...... 28 BBDO ...... 44 BlackEagle Partners ...... 37 Brazen, Kennelly ...... 32 Campbell-Ewald ...... 44 study says Capelli Financial ...... 16 Chrysler ...... 1 Cooley Law School ...... 13 BY JAY GREENE Craig Counseling ...... 36 CRAIN’S DETROIT BUSINESS Crestmark Bank ...... 36 Detroit Regional Chamber ...... 1 Employers and government payers Eastern Michigan Univ...... 11 could end up spending more for health General Motors ...... 1 Grand Valley State ...... 12 benefits if patients cannot afford pre- Hennessey Capital ...... 37 scription drugs or are presented with Henry Ford Comm. College ...... 12 barriers to getting the right medica- Huron Capital ...... 37 tions to treat their conditions — and be- J. P. Morgan ...... 32 come sicker because of it. Ladels Children’s Boutique ...... 3 Lawrence Tech. Univ...... 20 That is one possible conclusion that Leo Burnett Detroit ...... 44 can be drawn from a new survey in Leonard & Co...... 16 Michigan on access to prescription Macomb Comm. College ...... 12 drugs in the commercial and Medicaid Madonna University ...... 14 Marygrove College ...... 14 NATHAN SKID/CRAIN’S DETROIT BUSINESS HMO market. McCann Worldgroup ...... 44 Lauren Walker Thomas, owner of Ladels Children’s Boutique, is offering more toys and fewer books to help holiday sales. The good news is that the survey re- McGraw Wentworth ...... 27 ports an 8.8 percent average increase in Meadowbrook Insurance ...... 27 access to prescription medications for Merrill Lynch ...... 29 patients in Michigan with commercial Mich. Coalition for Care ...... 38 Mich. Colleges Foundation ...... 19 HMO insurance from June to December Mich. Financial Cos...... 27 2007, according to the Grand Rapids Mich. Health & Hospital Ass’n. . . . 38 No holiday for retailers African American Health Institute. Mich. Nurses Ass’n...... 38 The bad news is Medicaid HMOs re- Mich. Osteopathic Ass’n...... 38 duced access to prescription medica- Mich. State Medical Soc...... 38 Mich. State University ...... 17 Stores juggle inventory to avoid holiday season declines tions for patients by an average of 2 per- Morgan Stanley ...... 32 cent, the health institute said. Some 75 National City ...... 3 percent of state Medicaid members live Oakland Comm. College ...... 12 BY NANCY KAFFER ward grandparents and grandchil- in Southeast Michigan. Oakland Univ...... 12 Raymond James ...... 32 CRAIN’S DETROIT BUSINESS dren, along with offering a relax- RETAIL SLUMP The study is released biannually. Smith Barney ...... 30 ing shopping experience. Over the past two years, commercial Ladels Children’s Boutique in Ⅲ 59 percent of Michigan retailers Telemus Capital ...... 36 Thomas said she’s not con- HMOs have been increasing access to UBS Financial ...... 32 reported a drop in sales this downtown Detroit has been open cerned about national and local Univ. of Michigan ...... 12 September from the same month medications to people in group plans for just 18 months, and owner Lau- forecasts for a dismal retail sea- and the individual Wachovia Securities ...... 34 ren Walker Thomas isn’t taking the previous year, when 50 percent Wal-Mart ...... 1 of retailers reported a decrease son, but — like other area retailers market, but Medicaid Walsh College ...... 20 any chances. from 2006. — she’s keeping an eye on her in- HMOs have increased Wayne County Comm. College . . . . 12 Heading into the bookstore’s Ⅲ 52 percent of retailers reported ventory and increasing the num- prescription barriers, Wayne State University ...... 11 second holiday season, Thomas is a decrease in August sales from ber of promotions. said Dr. Lonnie Joe, increasing the ratio of toys to the previous year, 45 percent said With a grim back-to-school sea- president of the Detroit BANKRUPTCIES ...... 4 books in her inventory, carrying July sales dropped from the son ending and dismal forecasts Medical Society and a BUSINESS DIARY ...... 24 about 60 percent toys during the previous year and 55 percent for the holiday season, local retail- member of the health CALENDAR ...... 23 holidays, as opposed to the average reported a sales decline in June ers are hoping for the best. institute. when compared with June 2007. CAPITOL BRIEFINGS ...... 6 35 percent to 40 percent. In September, 59 percent of Rick Murdock, exec- CLASSIFIED ADS...... 38 “We want to offer a big variety Source: Michigan Retailers Association Michigan retailers reported a de- utive director of the Murdock KEITH CRAIN ...... 8 of things, but when we say variety, and Federal Reserve Bank of Chicago. crease in sales from the previous Michigan Association of LETTERS ...... 8 we’ll stick to our philosophy of year, when 36 percent of retailers Health Plans in Lansing, said he ques- OPINION ...... 8 toys without batteries that are vintage toys.” reported a decrease from 2006, ac- tions the survey’s methodology, that OTHER VOICES ...... 9 nonlicensed,” she said. “We won’t Thomas is planning promotions cording to the Michigan Retail In- Medicaid HMOs are increasing drug be carrying Barbie, but will have throughout the season, geared to- dex, produced monthly by the barriers and the low scores of some of PEOPLE ...... 22 some things you can’t get any- ward attracting customers, includ- Michigan Retailers Association in RUMBLINGS...... 46 where else in the city, including ing a shopping day oriented to- See Retail, Page 45 See Medications, Page 45 WEEK IN REVIEW ...... 46 20081027-NEWS--0004-NAT-CCI-CD_-- 10/24/2008 5:27 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 27, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Aastrom Biosciences avoids Nasdaq delisting — for now

BY TOM HENDERSON a closing price of at least $1 for 10 sory firm, had recommended Aas- Iron Mountain is proud CRAIN’S DETROIT BUSINESS straight days. It had fallen below $1 trom shareholders approve both the on Nov. 7. Its 12-month high of $1.07 proposals, saying that simple ma- to celebrate and recognize Ann Arbor-based Aastrom Bio- was set on Oct. 31, 2007. jorities allowed for better corporate sciences Inc. (Nasdaq: ASTM) has In April, a shareholder meeting to governance. ALCOS 50th Anniversary. been given a reprieve from a possi- vote on a reverse stock split was ad- Dunbar said the supermajority ble delisting by the stock exchange. journed to May after more than 60 requirement had been put in place On Oct. 16, the exchange an- percent of outstanding shares voted when the company was founded, nounced it was suspending thresh- approval, less than the supermajori- “as an anti-takeover measure. ... old requirements for share prices ty requirement. In May, when it be- This gives shareholders more pow- Protecting and storing the world’s information. because of what it called “current came clear the company would not er, and it was the right thing to do www.ironmountain.com extraordinary market conditions.” get a supermajority to vote yes, the from a best-practices standpoint.” So many companies had seen proposal was withdrawn. Although eliminating the super- their share prices drop below $1 In June, Nasdaq granted the com- majority requirement was meant to that the exchange was faced with pany an extension of 180 days. pave the way for a vote on a reverse either losing them as members, The threat of delisting came at a split, the company will hold off on a and their membership fees, or sus- time when Aastrom was receiving vote for now, said Dunbar. pending the rule. good news about a variety of clini- He said the suspension of the “Nasdaq believes that this tem- cal trials for its stem-cell based ther- price rule by Nasdaq buys the com- porary suspension will allow com- apies in both the U.S. and Europe. pany time. And right now, time is panies to focus on running their Aastrom’s stock hit a low of 15 critical, he said. businesses rather than satisfying cents on Oct. 13, then rebounded He expects government efforts to market-based requirements that on news of the Nasdaq rule suspen- free up liquidity and help the bank- are largely beyond their control in sion and the shareholder vote, ing system should lead to calmer the current environment,” said a closing at 29 cents on Oct. 17. It days in the market and a rebound in release issued by the exchange. closed Friday at 38 cents. share prices in general. “This temporary suspension SINCE 1981 “That was a huge housekeeping “And if the forecast is right for should help to restore investor matter that was plaguing us that the elections, Democrats are likely Full Digital Solutions confidence ... and allow investors Copiers Printers Fax Systems Color Systems we now have behind us,” said to control both the legislative and ƑƑ Ƒ to make decisions without consid- George Dunbar, Aastrom’s CEO executive branches, and that ering the likelihood of a very near- and president, should have an uplift for stem-cell term delisting.” of the require- stocks as well,” he said. The suspension will remain in ment for a su- Other news that could affect effect at least until Jan. 19. permajority and share price is that the company ex- Coincidentally, on Oct. 17, Aas- the vote to elimi- pects to hit a milestone soon for its trom held its annual shareholder nate it. “There ongoing Phase II clinical trials at meeting, which included a proposal was still a doubt 21 hospitals around the U.S. for a to amend the company’s by-laws to in my mind we’d therapy to treat a form of arterial www.leaderbusiness.com allow for the passage of proposals Central: 248-967-1000 get the two- disease, and expects soon to begin by a simple majority instead of the thirds approval a Phase II trial at Methodist Hospital East: 586-264-4908 supermajority of two-thirds that South: 734-287-3500 Dunbar we needed.” in Houston to treat cardiomyopa- had been required. In September, thy, which results in reduced That vote was intended to clear Institutional Shareholder Services Inc., heart function. the way for a future vote to allow a subsidiary of New York-based Tom Henderson: (313) 446-0337, the company to do a reverse stock RiskMetrics Group Inc., a proxy advi- [email protected] split to boost its share price above $1. The proposal to eliminate the supermajority was approved by 69 percent of outstanding shares. TREET ALK Another proposal to eliminate S T staggered terms for members of THIS WEEK’S STOCK TOTALS: 2 GAINERS, 32 LOSERS, 2 UNCHANGED the board of directors and have them all stand for re-election each CDB’S TOP PERFORMERS 10/24 10/17 PERCENT Life-Sized 103” Plasma HDTV year passed with 74 percent of the CLOSE CLOSE CHANGE on display outstanding shares. 1. Syntel Inc. $22.60 $21.03 7.47 Last Dec. 20, Aastrom was noti- 2. CMS Energy Corp. 10.05 10.14 -0.89 1080p fied that it faced delisting by June 3. DTE Energy Co. 33.01 33.68 -1.99 Resolution 17 if its stock price couldn’t achieve 4. Somanetics Corp. 18.70 19.28 -3.01 5. ITC Holdings Corp. 37.50 39.78 -5.73 Wall Mountable 6. Asset Acceptance Capital Corp. 8.31 8.94 -7.05 7. Rofin-Sinar Technologies Inc. 20.74 22.35 -7.20 Computer 8. General Motors Corp. 5.95 6.43 -7.47 Connections BANKRUPTCIES 9. Detrex Corp. 5.50 6.00 -8.33 Conference 10. First Mercury Financial Corp. 9.67 10.56 -8.43 The following businesses filed for Rooms 10/24 10/17 PERCENT Chapter 7 or 11 protection in U.S. CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE Home Bankruptcy Court in Detroit Oct. 17- Theaters 23. Under Chapter 11, a company files 1. Energy Conversion Devices Inc $30.49 $41.56 -26.64 for reorganization. Chapter 7 involves 2. Kaydon Corp 27.16 36.01 -24.58 96.5”W x 57” H total liquidation. 3. ArvinMeritor Inc 5.97 7.77 -23.17 Avant-Garde Atelier I Inc., 23001 Bris- 4. Credit Acceptance Corp 12.55 16.04 -21.76 tol Court, Bingham Farms, voluntary Agree Realty Corp 17.73 22.55 -21.38 Chapter 7. Assets: $8,319; liabilities: 5. $346,722. 6. Masco Corp 10.29 13.08 -21.33 East Pointe Enterprise Inc., 7523 Cal- 7. Pulte Homes Inc 8.50 10.38 -18.11 houn, Dearborn, voluntary Chapter 7. 8. Caraco Pharmaceutical 8.49 9.90 -14.24 37670 W. 12 Mile Rd. Farmington Hills Assets: $45,000; liabilities: $393,036. 9. Meadowbrook Insurance 5.14 5.89 -12.73 NW Corner of Halsted Greenfield Family & Cosmetic Den- 10. Kelly Services Inc 12.95 14.51 -10.75 tistry P.C., 32364 Arlington Drive, Bev- 248.553.4100 erly Hills, voluntary Chapter 7. As- Source: Bloomberg News. From a list of publicly owned companies with headquarters sets: $77,672; liabilities: $252,357. in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading visit us at www.PaulsonsAV.com at less than $5 are not included. — Compiled by Julie Dawso DBpageAD.qxd 10/23/2008 11:57 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS October 27, 2008 ‘Upper Hand’ campaign is helping biz climate

LANSING — Michi- has increased 246 percent, MEDC funds derived from Ameri- gan has its challenges, and hits to the MEDC Web can Indian casino revenue. but the state’s business- Capitol site have increased by 483 The campaign’s message remains the same, Dancsok said the new Upper attraction campaign ap- Briefings percent. Hand campaign will begin in Febru- pears to be moving the Advertising hasn’t been but the state is adapting it around targeted ary. She said the campaign’s mes- needle in convincing the only boost; the Legisla- sage remains the same, but the state CEOs that Michigan is ture and administration sectors and industries. is adapting it around targeted sec- tors and industries such as wind open for business. have modified economic- But Lisa Dancsok, senior vice In 2009, Dancsok said the MEDC In three years of the development incentives, and solar energy, while promoting president at the MEDC, said Upper will have about $11.75 million to incentives for business investment. Upper Hand campaign, such as the Michigan Eco- Hand advertising has people spend on business marketing, sim- the Michigan Economic De- nomic Growth Authority pro- “thinking about us differently and ilar to 2008. Of the marketing bud- velopment Corp. has seen gram, and created new ini- considering us as a place to do get, $3.75 million comes from the MEDC getting tribal casino cash increases in qualified Amy Lane tiatives, such as the Centers business. When we started this 21st Century Jobs Fund, $5 million is The Michigan Economic Develop- leads and projects and of Energy Excellence pro- three years ago, they didn’t even from legislatively approved refi- ment Corp. is looking at uses for improvements in CEOs’ perceptions gram to spur alternative-energy put us on their radar screen. So nancing of tobacco-settlement dol- new Indian casino money it will be of the state. Business e-mail activity technology development. that’s a good thing.” lars, and the remainder is from receiving in the wake of an an- nouncement last week that the state and a southwest Michigan American Indian tribe have re- solved a revenue-sharing dispute. Gov. Jennifer Granholm and the Pokagon Band of Potawatomi Indians announced the signing of an amended gaming compact covering revenue sharing from the tribe’s Four Winds Casino Resort in New Buf- falo and potentially two other casi- nos that the tribe can develop. The agreement results in an im- mediate $15 million payment to the state and annual revenue pay- ments from the tribe’s current and future casino operations. The state and two other tribes settled a similar dispute earlier this year, renewing key revenue streams from those tribal opera- tions to the MEDC. Lisa Dancsok, senior vice presi- dent, said the MEDC has begun looking at recommendations for the revenue. She said the MEDC board would need to consider and approve recommendations, and the state is not likely to spend any of the money before the start of 2009. The amended compact provides for a reduction in the Pokagon’s state revenue-sharing payments from the Four Winds casino, from 8 percent to 6 percent. The tribe has the right to devel- op two additional casinos, each containing no more than 1,000 slot machines, in Van Buren County and Cass County. State payments from those casinos will be 8 per- tock inddexes and asset allocations are one thing. But in the end, what cent of net slot revenue, and all payments to state and local rev- really matters are the investments we make in the lives of those around enue-sharing boards will be made us. At the Private Client Group, we help you manage, grow and preserve your annually, instead of semiannually. wealth, so you can proovide for those you care about most. We offer strategies OFIR makes filing regulations and solutions for personal truusts, estate administration and charitable giving The Michigan Office of Financial to ensure you leave your legacy and reach your personal goals – ones that and Insurance Regulation has issued new requirements for insurance enrich and enhance your life and the lives of those around you. companies and agents to file elec- tronically with the state. Beginning Oct. 29, all resident Trust is something we earn. and nonresident agent license ap- plications must be filed electroni- To experience the Private Client Group in Detroit, cally. And effective April 1, all company insurance rates, rules call Randi Bellner, Market Executive, at 248.729.8479. and policy forms must also be sub- mitted electronically to OFIR. Electronic filing is a major as- pect of the National Association of In- surance Commissioners’ uniformity initiative for state insurance de- partments. WEALTH PLANNING | Investments | Private Banking | Trust & Estate Services Comings & goings NATIONALCITY.COM/PRIVATECLIENTGROUP Ⅲ James Miller, former president and CEO of the Michigan Insurance Coalition, has joined Governmental ©2008, National City Corporation® Consultant Services Inc. as a lobbyist. Amy Lane: (517) 371-5355, [email protected] DBpageAD.qxd 10/21/2008 4:44 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS October 27, 2008 OPINION LETTERS State tax structure OCC article had inaccuracies Editor: reputation. She is OCC’s duly au- Crain’s Detroit Business Your story “OCC trustees’ credit welcomes letters to the editor. thorized voting delegate to the card use raises questions” (Oct. 13) All letters will be considered for American Community College contains outright inaccuracies, as publication, provided they are Trustees’ annual convention. She compounds crisis well as baseless innuendos about signed and do not defame has served for 16 years as OCC’s OCC Trustee Anne Scott, which I individuals or organizations. elected representative to the he question hanging over the entire region is: What will cannot allow to go unchallenged. Letters may be edited for length Michigan Community College As- happen with the large auto companies that are reeling Not once, but twice, your story and clarity. sociation, including 10 years on erroneously states that she took T from the credit crunch and a shortage of cash. Write: Editor, Crain’s Detroit their board of directors, executive two trips “to China at OCC ex- As Dan Duggan reports on Page 1, even a merger of Chrysler Business, 1155 Gratiot Ave., committee, and as its chair. She pense — her second visit there this Detroit, MI 48207-2997. continues to serve on the MCCA L.L.C. and General Motors Corp. would have huge implications year.” And again, “She has al- E-mail: [email protected] strategic planning and legislative ready visited China once this for commercial real estate. Job cuts and supplier consolidation committees. year.” from a merger – or a bankruptcy – would stagger the region. Her service on these state and The slightest checking of fact would never consider doing that. national community college This is a time for bold thinking in creating policy that would have revealed that Trustee Her itinerary includes hours of groups requires her to travel more could stimulate investment in Michigan for the long term. And Scott is, at the moment, on her one seminars and tours of vocational we can start with the tax structure. The crippling Michigan and only trip to China with 21 oth- and technical schools. She will than any other trustee, a fact that minimal attention to reporting Business Tax and its widely loathed surcharge had already er college administrators from bring back information that will around the country, at the request serve OCC well and help strength- standards would have revealed. triggered an exodus of capital from the state for commercial of the China Education Associa- en the ties between out nation and The assertion that her trips in- real estate investment. And that was before the Wall Street tion for International Exchange. China. clude “overnight stays in Livonia, meltdown and credit crisis. She spent a tremendous amount of Trustee Scott was invited on Detroit and Sterling Heights” Ironically, as the stock market see-sawed last week and spec- time preparing for this trip, which this trip, which was authorized by overlooks the fact that, after includes a presentation on college the full OCC board, by the Chinese chemotherapy from her battle ulation grew over the fate of GM and Chrysler, Detroit welcomed governance she will make to the government and the American As- with cancer of the esophagus af- the revitalized Book Cadillac hotel with weekend parties. CEAIE attendees. This is a work- sociation of Community College fected her vision, she cannot drive Cleveland’s John Ferchill saw an opportunity in a shut- ing trip, not a fun “visit.” She Trustees, because of her national See Letters, Page 9 tered hotel in downtown Detroit. With a complicated financing deal and the help of the Detroit Economic Growth Corp., Fer- chill’s triumph reopened as the elegant Westin Book Cadillac Detroit Hotel and Residences. We hope it’s not the last such celebration for a major investment in the region. Yet the Wall Street meltdown means that similar efforts in TALK ON THE WWEB the region and urban centers around the state wouldn’t be pos- From www.crainsdetroit.com sible under current credit conditions. Our education system must encour- Re: How to increase entrepreneurship Reader responses to stories and Michigan’s elected leaders have no excuse for dallying on age entrepreneurship throughout all Increase capital available for en- blogs that appeared on Crain’s creating an investment-friendly tax policy. levels of our system. Being in the trepreneurs; make entrepreneurial Web site. Comments may be education a higher state priority; driver’s seat, you are the only one edited for length and clarity. get university research from the lab that can eliminate your own job. Macomb must make hard cuts to the market; use the tax struc- Kipp Krukowski ture to incentivize entrepreneurial high tech, but there are some great Confidential Business Sale Inc. Macomb County may be Ground Zero. growth; limit the burden of govern- ideas out here in the service indus- The county is scrambling to reduce a looming $33 million ment regulation and support ef- try that never get instituted be- We must start teaching students operating deficit with proposed cuts in everything from sher- forts to better assist entrepreneurs. cause there are not funds available Michael Rogers to help kick them off. that they do not go to college just to iff’s road patrols to parks and recreation and a county-owned Vice President Communications Geof Bush work for someone else. medical care facility for seniors. Small Business Association of The Coronet Group L.L.C., d.b.a. In addition, we must advocate buying from our neighbors and That’s the logical approach. Operations must be aligned Michigan Your Flight Department keeping sales in our communities. with revenue. Lansing Negativity drives more people out of Sherry Abernathy But the hard decisions remain. Don’t be an entrepreneur elitist. The the state and obviously presents us Assistant Dean, School of Nursing Oakland University The county, like many government units, has rewarded em- true entrepreneur can find a prod- in a negative light around the ployees with generous retirement benefits. If Macomb workers uct or service needed by, and/or country. jobs to employ workers in, any edu- Beverly Price combined age and years of service to reach 70, they could retire We need to have media focus on cation-demographic level. with full pensions and lifetime health care benefits. Not surpris- the need for entrepreneurship. Frank Soave ingly, the county has lots of 50-something retirees. Community support and the Susan Corey The financial meltdown, lower property taxes and all the I’d like to see some attention paid presence of other entrepreneurs are Workforce Development Manager to service businesses when it comes both very important. Southeast Michigan Community other financial calamities require tough decisions that reflect to funding. Sure, it’s not as glam- John Kerr Alliance the least harm for the greatest number of taxpayers. orous as alternative energy or Kerr Associates L.L.C. Michigan Works!

KEITH CRAIN: One follows the other, day after night For those of you who thought we’re going to have four anyone any good, par- time, they could have had the same bers, I need thousands of signa- that there might be a small pause races for mayor in De- ticularly the people of elections for the nine members of tures. That is simply unfair and or respite from the politics of the troit. We’ll have two pri- Detroit. Detroit City Council. doesn’t make any sense at all. last couple of years, you’ve got an- maries and two general At a time when it can One of these days, you can only The people of Detroit are ready other thing coming. elections. And these all least afford it, the city hope that someone will be able to to have a City Council that is elect- No sooner than we will have are going to happen of Detroit is going to be get the necessary signatures to put ed by geography, according to all within 12 months. elected a president in the longest spending millions of on the ballot at the same time the the recent polls. It would be voted I don’t care what the race in history, we’re going to dollars on elections that possibility that Detroit will elect on overwhelmingly. But there are city charter says, there jump back in immediately and it simply doesn’t need. their City Council members by dis- some arcane rules that simply watch a whole bunch of folks run had to be some sane A primary followed tricts rather than at-large. don’t make sense anymore. for mayor of Detroit. voices who said, “No, by an election of the top There is something screwy We’re not through with the elec- The strange thing about the this is ridiculous,” and two vote-getters would when I can run for mayor by get- tioneering, and it looks like we’re mayor’s race is that it’s not just a then fix the charter to have seemed to anyone ting a few hundred signatures, but going to have some sort of election race, it’s a marathon. avoid having to spend so much sufficient to elect the next mayor if I want to amend the way Detroi- forever. This democracy stuff can Next year, starting in January, money when it simply isn’t doing for four years. And at the same ters elect their City Council mem- start to wear on you after a while. 20081027-NEWS--0009-NAT-CCI-CD_-- 10/24/2008 11:18 AM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES:Palin’s run teaches lessons about women

Sarah Palin has brought Chile and New Zealand There are two leadership competen- our community who are part of In- women’s votes. As one of the few new attention to the presi- have all beat the United cy areas where women as a group forum’s membership. Campaigns women to have a serious shot at one dential race. My e-mail in States in electing women score lower than men — self-confi- have long assumed that our mem- of our nation’s top elected positions, box was overflowing with to the top job. How long dence and conflict resolution. Palin bers are mostly Democrats, forget- Palin’s candidacy has made her a questions about whether will the U.S., a leader in did well in the debate and continues ting that these are businesswomen powerful role model for professional women voters, particular- providing opportunities to do well on the campaign trail (es- whose interests are also often women, mothers and daughters ly Hillary Clinton support- for women in many non- pecially her “Saturday Night Live” aligned with the Republicans. Our everywhere. The next generation ers, would flock to McCain. political venues, lag in appearance) on the self-confidence members are a diverse, opinionated will be watching how we discuss this respect? Most women I know front; we’d have to see her leader- group, and companies and politi- and react to her candidacy. Mean- Inforum helps develop found the assumption be- ship in action to know how she cians who understand the increas- while, Inforum will continue to help Terry Barclay future leaders through the hind the question interest- deals with conflict. ing power and influence of the women lead and succeed, encourag- ing — that women would vote for a Inforum Center for Leadership, I have watched as the staffs of women’s vote and market under- ing and preparing more talented female regardless of whether their which works at developing women both campaigns and members of the stand that this is a demographic women to take leadership positions political views were aligned. How- leaders and accelerating careers. media have come to realize a valu- whose support cannot be taken for in the future. ever, Palin’s entry into the race got More than 500 have graduated from able lesson — that women are not a granted — it must be earned. Terry Barclay is president and the attention of women every- our Executive Leadership program, monolithic group. Take the busi- We’ll learn soon which team CEO of Inforum, an alliance of pro- where. Great Britain, Germany, and we’ve noticed some trends. nesswomen and opinion leaders in earns the largest share of the fessional women.

LETTERS CONTINUED ■ From Page 8 after dark. The Livonia meeting took place during a blizzard. Your story on the charges to her American Express card did not make clear that these were not per- sonal charges and were authorized JEFFREY BATTERSHALL WARNER NORCROSS & JUDD RICHARD WARNER NORCROSS by the full board of OCC. Your only BOUMA WARNER NORCROSS & JUDD JEFFREY BRACKEN WARNER & JUDD HUGH MAKENS allegation of a personal charge was NORCROSS & JUDD JAMES BREAY WARNER NORCROSS & JUDD WARNER NORCROSS & $168 for groceries at Holiday Mar- CHARLES BURPEE WARNER NORCROSS & JUDD JOHN BURSCH JUDD JOHN MARQUIS WARNER ket. This charge, which was posted WARNER NORCROSS & JUDD JOHN BYL WARNER NORCROSS NORCROSS & JUDD RODNEY in error and should have been & JUDD RICHARD CASSARD WARNER NORCROSS & JUDD ROBERT MARTIN WARNER NORCROSS & charged to the trustee’s personal CHOVANEC JUDD CHARLES MCCALLUM WARNER college account which is funded by WARNER NOR- NORCROSS & JUDD JOHN MCKENDRY trustee donations, was for a gath- CROSS & JUDD JR. WARNER NORCROSS & ering to honor the memory of OCC SUE CONWAY JUDD MOLLY MCMANUS WARNER Trustee Janice Simmons, who died WARNER NOR- NORCROSS & JUDD CRAIG in office. CROSS & JUDD MEURLIN WARNER NORCROSS & Trustee Scott, a retiree, uses an J. A. CRAGWALL JUDD SUSAN GELL MEYERS WARNER OCC credit card because, unlike JR. WARNER NORCROSS &JUDD NORCROSS & JUDD JEFFREY some more fortunate trustees, she CAMERON DELONG WARNER NORCROSS & JUDD DOUG POWER WARNER NORCROSS & cannot afford to pay her expenses DOZEMAN WARNER NORCROSS & JUDD CARL DUFENDACH JUDD JAMES RABAUT WARNER out-of-pocket and then wait to be WARNER NORCROSS & JUDD JOHN DUNN WARNER NORCROSS NORCROSS & JUDD LOUIS RABAUT WAR- reimbursed. She lives on Social Se- & JUDD STEPHEN GROW WARNER NORCROSS & JUDD WILLIAM HALL NER NORCROSS & JUDD RICHARD curity and seasonal part-time WARNER NORCROSS & JUDD KATHLEEN ROANE WARNER NORCROSS & work. She devotes the majority of HANENBURG WARNER NORCROSS JUDD MICHAEL ROBINSON WARNER her life to OCC, without ever ex- & JUDD SHANE NORCROSS & JUDD VERNON pecting to be paid. HANSEN WARNER SAPER WARNER NORCROSS & JUDD Trustee Scott “did not respond NORCROSS & JUDD DEVIN SCHINDLER WARNER NORCROSS to requests for comment” because MARK HARDER & JUDD ROBERT SKILTON III WARNER NORCROSS & JUDD EUGENE SMARY WARNER no such request was made of her. WARNER NORCROSS NORCROSS & JUDD JEROME SMITH WARNER NORCROSS & JUDD PAUL SORENSEN Reporter Chad Halcom did not try & JUDD TIMOTHY WARNER NORCROSS & JUDD JAMES SPICA WARNER NORCROSS & JUDD GORDON to reach her on her phone, which HILLEGONDS WARNER NORCROSS TOERING WARNER NORCROSS & JUDD W. MICHAEL VAN HAREN WARNER NORCROSS was changed a few months ago. & JUDD WILLIAM HOLMES WARNER & JUDD DONALD VELDMAN WARNER NORCROSS & JUDD DOUGLAS WAGNER WAR- The chancellor’s office would have NORCROSS & JUDD TIMOTHY HORNER NER NORCROSS & been happy to supply her new WARNER NORCROSS & JUDD WILLIAM JANSEN JUDD STEPHEN number had they been asked. WARNER NORCROSS & JUDD ANTHONY KOLENIC JR. WARNER NOR- WATERBURY As a fellow trustee from 1996 to CROSS & JUDD STEPHEN KRETSCHMAN WARNER NORCROSS & WARNER NOR- 2004 and board chair for the last JUDD MARY JO LARSON WARNER NORCROSS & JUDD CROSS & JUDD two years of my term, I did not al- GORDON LEWIS WARNER NORCROSS & JUDD GEORGE WHITFIELD ways agree with Trustee Scott on issues, but I never had cause to question her integrity, loyalty and devotion to the college. To suggest otherwise is a grave disservice not just to her, but also to the students who depend on OCC for a quality education. Your story has caused her in- tense pain and taken a terrible toll on her energy. Crain’s owes Trustee Anne Scott more than a correction. They owe her a profuse apology and thanks for her service to OCC. Jeanne Towar STRENGTH IN NUMBERS Bloomfield Township Editor’s note: Crain’s erred in saying two trips to China were 54 names. Go ahead, count ‘em. 54. And they all share an honor that exemplifies the dedication, planned (Corrections: Oct. 20). strength and excellence of Warner Norcross & Judd. 54 names. 54 people committed to each Crain’s attempted to reach Scott at case, each valued client. 54 partners rated Best Lawyers in America, 2009. a phone number that was busy or ® not in service and also through the The Best Lawyers in America 2009. Copyright 2008 by Woodward/White, Inc., Aiken, SC. A better partnership. www.wnj.com chancellor’s office, which said that Scott and all other trustees were contacted with a request to com- ment. DBpageAD.qxd 10/21/2008 11:33 AM Page 1

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October 27, 2008 CRAIN’S DETROIT BUSINESS Page 11

A CONVERSATION WITH Access to loans to tighten Some colleges expect to feel the impact from the credit crunch in the coming James months as students find it Jacobs, Macomb harder to fill their pockets Community with loan money. Page 13. College business education

James Jacobs, president of Macomb Community College, spoke to Crain’s reporter Chad Halcom about how the recent economic shake-up affects the local economy and education.

Until recently, the weak dollar was aiding local manufacturing in some segments, and local economists called for a turnaround in Southeast Michigan by late 2009. Is that still reasonable after the fallout from the lending crisis and Chrysler L.L.C. merger rumors? There’s no question recent events have entirely put off that timetable. If there is going to be a major recession, and it’s worldwide, that affects the demand for any goods wherever they are produced. I think for at least another year the Michigan economy will be seriously strained and tested. And when you look at the scenarios under consideration for Chrysler, a merger COURTESY OF WAYNE STATE UNIVERSITY with General Motors or a portion Fall enrollment at Wayne State University is down 6 percent from fall 2007. It is the largest year-over-year decline at the school in at least 10 years. bought by Renault-Nissan, those scenarios play out badly for Macomb County because they would mean a substantial drop in employment and consumption here.

Chrysler and GM are the top two employers and account for 24,200 jobs in Macomb. Normally downturns and job cuts boost Enrollment report card community college enrollment, but wouldn’t something this large hurt more than help? The hourly worker market is the primary market we serve Colleges that pull largely from Wayne County see declines for students, so in some ways we’ll be affected. This is bittersweet for us, because we will lose in that market. BY CHAD HALCOM University show the total fall But at the same time people are CRAIN’S DETROIT BUSINESS 2008 head count was 31,025 WHERE THE STUDENTS ARE students, a drop of more turning to community colleges for their he growing financial The two state universities with the largest percentage of students from Wayne first two years of (a four-year college) than 6 percent compared challenges that four- County suffered significant enrollment declines this year. education. Demand will continue to be with 33,240 in fall 2007. T year state universi- That’s the largest year-over- Percent strong for post-secondary education ties face in staying competi- year decline at WSU in at Percent students from and advanced degrees. So this new School Fall 2007 Fall 2008 change Wayne County* tive may be even more least 10 years, and enroll- trend should offset any (working adult) severe among schools heavi- losses. ment is now its lowest since Wayne State University 33,240 31,025 -6% 44.0% ly fed with Wayne County fall of 1999. enrollment, according to Also seeing a notable de- Eastern Michigan University 22,638 21,926 -3% 32.0% What degree programs or career new data. cline is Eastern Michigan Uni- paths have seen major demand Preliminary figures for versity, which reports a pre- Other schools have marked flat or improved enrollment: under all the economic fall 2008 enrollment show liminary fall 2008 Central Michigan University 26,787 27,354 +2% 9.5% restructuring in the region? the schools that recruit enrollment of 21,926 stu- Accounting continues to be very heavily from Wayne County dents. Even though Eastern Grand Valley State University 23,464 23,892 +2% 5.0% important as the market changes, and are grappling more than is in Washtenaw County, it Western Michigan University 24,433 24,818 +2% 7.0% within manufacturing there is demand their neighbors with lost recruits its largest share of for skills like CNC (computer market share to community students from communities Michigan State University 46,069 46,500** +1% 11.0% numerical control) tool operating. IT colleges, increased universi- in Wayne County. and software are solid, and of course, ty competition and families’ Eastern’s enrollment is Oakland University 18,082 18,161 — 7.0% financial struggles in tough nursing and nursing support off about 3 percent from last *Based on 2006, 2007 data from the Office of State Budget. times. professions. What’s coming up, if the fall’s preliminary 22,638 to- **Based on partial data from university only. No exact figure available. Enrollment figures tallied recession is fairly short, would be Note: UM is not included because enrollment is capped. logistics and supply chain this month for Wayne State See Enrollment, Page 12 management, and if incomes rise, then personal service jobs will see a resurgence. More education stories inside If you know someone Adviser education Financial scrutiny Liberal arts power College giving interesting you would like Chad Experts disagree on best methods, New questionnaires from the IRS Robert Bartlett, president of the Schools respond to cooling Halcom to programs for grooming financial quiz universities on income, Michigan Colleges Foundation, fundraising climate with more interview, call (313) 446-6796 advisers for the job. endowments and executive pushes collaborative university flexible options for corporate or write chalcom Page 16. compensation practices. efforts, corporate support. donors. @crain.com. Page 17. Page 19. Page 20. 20081027-NEWS--0012,0013-NAT-CCI-CD_-- 10/24/2008 11:29 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 27, 2008

FOCUS:BUSINESS EDUCATION

,EARNôWHATôITôTAKESôTOôSECUREôAND Enrollment: Colleges RETAINôTHEôBESTôACCOUNTINGôANDô kNANCEôPROFESSIONALS report their numbers #ALLôTODAYôFORôYOURô&2%%ôô ■ From Page 11 3ALARYô'UIDE tal, the biggest year-over-year drop ed earlier this year to cap fresh- since 1994. It’s also EMU’s lowest man enrollment around 5,710 so head count in at least 20 years. that UM could “maintain a rela- “Freshman numbers are defi- tively constant undergraduate stu- nitely down. People have decided dent body population” in 2008. To- to start their education at commu- tal UM enrollment was 41,042 in nity college, and we know Grand 2007, of which 8 percent hailed Valley State University is doing from Wayne County, according to heavy recruitment on this side of state data. Preliminary 2008 enroll- the state,” said Howard Shapiro, ment was reported at 41,028. associate vice president of under- “A selective admission college graduate programs and general ed- like UM might not see the same ucation at Wayne State. “But trend. They still turn away appli- we’ve done some surveys of stu- cants, so even at that price point dents we’re losing, and finances they have a de- #ATCHôA appear to be a major factor.” mand that ex- Shapiro, who handles enroll- ceeds supply,” ment in his department, estimates said Michael the problem of sliding numbers is Hansen, presi- RISING STAR !CCOUNTEMPS ñ2OBERTô(ALFô&INANCEôô!CCOUNTING “about one-third recruitment and dent and CEO of >KAñ2OBERTô(ALFô-ANAGEMENTô2ESOURCESñ>OBñQEB two-thirds retention issues.” Pre- the Michigan IB>ABOPñFKñPMB@F>IFWBAñhñK>K@F>Iñ>KAñ>@@LRKQFKD liminary totals from a mid-Sep- Community Col- PQ>ChñKDñCLOñQBJMLO>OV ñCRII QFJBñ>KAñMOLGB@Qñ tember enrollment count at WSU leges Association. MI>@BJBKQ ñOBPMB@QFSBIV show nearly a 5 percent drop in “But general- both freshmen and graduate stu- Hansen admission col- dents, with another 2.5 percent leges and uni- loss of undergraduate upperclass- versities have got to be finding men. their prices drive students to com- The school received more than plete their freshman or even 500 responses to its e-mail queries sophomore years in community of lost students over the summer college,” Hansen said.    months, with some telling results, Southeast Michigan’s four ACCOUNTEMPSCOM ROBERTHALFCOM ROBERTHALFMRCOM Shapiro said. largest community colleges saw “About 40 percent of all students modest to sizable enrollment gains Úôô2OBERTô(ALFôô!Nô%QUALô/PPORTUNITYô%MPLOYERô  said they didn’t know if they’d over the same year. Oakland Com- have enough money to continue munity College is up 1.7 percent at their education in the fall. Finan- 24,957 compared with 24,532 last cial aid issues were mentioned a fall, while Macomb Community Col- great deal, and the lending crisis lege is up 1.9 percent at 22,793 com- may add to that,” he said. “The pared with 22,348 a year earlier. number of people citing personal In Wayne County the trend is issues was probably not quite 20 sharper: Dearborn-based Henry percent, and that’s fairly constant Ford Community College is up 15.6 from year to year.” percent at 16,136 compared with Curbing “stop-outs” — students 13,951 students last fall, and Wayne who suspend their education with- County Community College District re- out a degree for reasons other than ports a 17 percent surge from academic performance — would 20,504 to 24,012 students. reverse at least some of the enroll- “Enrollment at community col- leges tends to be counter-cyclical ment decline, said Shapiro and — when the economy is down en- Bernice Lindke, interim vice pres- rollment is up for people retrain- ident of student affairs at Eastern. ing. It’s pretty intuitive, and it’s But another obstacle could be been that way for years,” Hansen geography. According to 2007 data said. from the Michigan Office of State “But unlike some other trends, Budget, Wayne County is the lately the average age of a new largest single contributor to the community college student is go- student bodies of both EMU and ing down. That appears to be peo- WSU, at 32 percent and 44 percent ple who are going to a four-year respectively. college eventually but would At Oakland University, where just rather take their first-year courses 7 percent of the student body hails for $70 a credit-hour rather than from Wayne County, enrollment is $230 a credit-hour.” up roughly 0.5 percent at 18,161, Marjorie Swan, vice president of compared with 18,082 in 2007. business affairs at HFCC, agreed Matt McLogan, vice president of the enrollment bump is tied to tu- university relations at Grand Val- ition prices at four-year colleges, ley, said Wayne, Oakland and Ma- but only in part. comb counties are three of the top “It’s coming from two places,” six source counties for freshmen she said. “Students are looking at — and Oakland ranks immediately community college as … a reason- behind Kent and Ottawa counties, ably priced alternative for their where the university’s two main first two years of education, as campuses are based. well as individuals from (manufac- “One of the things we promote turing segments) returning to col- elsewhere is that we can offer pub- lege for training or retraining for a lic university pricing for private new (job) marketplace.” university-level amenities,” he OCC reports that half of its full- said. “But we are really doing only time students are seeking transfer- the same (attraction) efforts we’ve able credits to carry over to four- made for much of the past decade year institutions, rather than an — using testing services to contact associate’s degree as an end result, test-takers who meet our qualifica- and Lindke said each academic tions, and direct mail.” The University of Michigan decid- See Enrollment, Page 13 20081027-NEWS--0012,0013-NAT-CCI-CD_-- 10/24/2008 11:29 AM Page 2

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 13

FOCUS:BUSINESS EDUCATION Credit crunch likely to tighten access to some loans by winter

BY CHAD HALCOM AND ident and dean aren’t as likely to default on loans But “the vast majority” of these 2008 enacted in May. But she said MARTI BENEDETTI of the Thomas M. as much as some institutions, like are federally funded loans, he said, the jury was still out on the total CRAIN’S DETROIT BUSINESS Cooley Law professional trade schools or com- with a much lesser share coming impact of the recent financial tur- School, which munity colleges, might see. There, from the private lenders troubled moil. The full impact of the credit has campuses in the lending market might get a lit- by mortgage-backed securities and “The winter term (starting Jan- market shake-up is yet to be felt by Auburn Hills, tle tougher.” a deflating credit market the past uary 2009) is probably when we’ll area colleges and universities. Lansing and Preliminary first-year student several weeks. see a more complete picture on While some institutions are fair- Grand Rapids. enrollment is 1,003 students this Margaret Rodriguez, associate how it affects enrollment,” she ly insulated based on student base “We haven’t semester across all three Cooley director of the Office of Student Fi- said. “Because one of the condi- and typical lending sources, others had any trouble campuses — second only to the nancial Aid at the University of tions of enrolling for winter is that expect students to face a financing LeDuc yet with stu- school’s 1,068 in late 2006 — and Michigan, said the federal govern- you have to be paid up for the fall. pinch in the coming months. dents getting LeDuc estimates 80 percent or ment has gone a long way toward If students had any troubles get- “I think the overall market ad- loans, but then professional more of its 3,000-plus students rely stabilizing the student lending ting the (promised) funding, it’ll justed to the (lending) situation schools like ours are near the top on loans for at least a portion of tu- market, with the Ensuring Contin- pretty well,” said Don LeDuc, pres- of the food chain. Our students ition and living costs. ued Access to Student Loans Act of See Credit crunch, Page 14 Enrollment: Numbers ■ From Page 12

year the number of EMU students who are new to college in general is roughly equal to that of new stu- dents who transfer to EMU from other schools — about 2,550 each. “We’re not having as many stop- outs as Wayne State. It seems like more of an issue of students going elsewhere for general education requirements, and then coming to Eastern for more specialized learn- ing,” she said. Every 1 percent decline in en- rollment causes at least a $1.5 mil- lion shortfall in tuition revenue at Eastern, said interim CFO John Lumm, and the current decline had a $5 million impact on the school’s $262.7 million general fund budget. The school anticipated much of that decline, and is balancing the budget by eliminating 30-plus va- cant staff positions and renegotiat- ing contracts with some of its ven- dors, he said. But continued enrollment de- clines could mean tuition increas- es in the future, he said, even if that only feeds the problem. “What we’re trying to do is sta- bilize the enrollment trend,” he said. “But if that doesn’t happen and costs increase, that becomes a challenge for us to keep tuition un- der control, compounded by the state’s flat level of support for pub- lic universities each year.” Community college budgets, however, are seeing black ink. MCC reports 9,500 more total cred- it hours enrolled this fall, which at a $72 per credit hour in-district tu- ition means a $684,000 bump in revenue. OCC reports an increase of 4,500 total credit hours enrolled, which at $60.10 per hour in-district means a $270,450 increase in rev- enue. “And most significantly, we’ve found almost a 19 percent increase in total financial aid to students,” said MCC president James Jacobs. “Since many of the rules govern- ing that aid require you to be a full-time student, that tells us we are getting a shift in the kind of students we have coming.” Chad Halcom: (313) 446-6796, [email protected] 20081027-NEWS--0014-NAT-CCI-CD_-- 10/24/2008 11:28 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS October 27, 2008

FOCUS:BUSINESS EDUCATION

FUND LIMITS SCHOOLS’ ACCESS TO THEIR INVESTMENTS Credit crunch: Loan access to tighten Troubled lenders have limited be available by Dec. 31, when colleges’ and universities’ access to leading student lender Wachovia ■ From Page 13 their own investments. Corp. resigns as fund trustee and At least 25 Michigan private and the fund goes to a successor. have an effect.” dent aid and total tuition costs. difficult for some families to bor- public colleges and universities have Some $25 million in the fund About 3,500 UM graduate and un- The continued access legislation row, Rodriguez said. investments tied up in funds with belongs to the University of dergraduate students obtained earlier this year raised borrowing “The parent loan market has limited access through Wilton, Michigan, about $23 million to some loans from private sources in limits under federally funded and changed drastically since last Conn.-based Commonfund, a fund Grand Valley State University, $28 2006-07, the most current year for federally subsidized loan pro- year, and it may be that if parents’ manager for nonprofit agencies. million to Western Michigan which Rodriguez had data. By com- grams — theoretically limiting circumstances change as a result University and an undisclosed The fund assets in a $9.3 billion parison, more than 12,000 obtained students’ and families’ reliance on of tough economic times, their short-term fund for colleges and portion of an endowment fund for loans from other sources, and UM private lenders — and gives par- own credit rating will suffer and other schools frozen Sept. 30 have private Kalamazoo College. had nearly 41,000 total students. ents the option to defer repayment been incrementally released to Mike Boulus, executive director of families may find they don’t quali- investors, with 48 percent investor the Presidents Council of State Most students who rely on pri- under the federal Parent Loan for fy for as much (lending) in the fu- liquidity restored as of last week, Universities of Michigan, said “about vate funding use it for “bridge Undergraduate Studies until six ture,” she said. said Commonfund Managing half” of its member public loans” or temporary lending until months after a child leaves school. Reston, Va.-based SLM Corp., or Director Keith Luke. It is expected universities were affected. another funding source becomes But eligibility for PLUS loans is Sallie Mae, the student lender re- nearly two-thirds of all assets will — Chad Halcom available, or to cover the gap be- now more closely tied to parents’ sponsible for $7.2 billion or more tween federal funds or other stu- own credit ratings, making it more than 40 percent of all private stu- dent loans in 2007, also announced earlier this month it was tightening its credit standards. In addition, it is raising loan pricing. Schools extend grant options At many private schools, such as Marygrove College in Detroit, up to 90 percent of the students are getting financial aid. Marygrove College President David Fike said the college started a new financial aid strategy whereby Marygrove counselors are recruiting up to 100 students with a 3.0 grade point average or better from low-income families. “Marygrove wants to provide ac- cess for these students to a quality Marygrove education,” Fike said in an e-mail. “So it has decided to ex- tend additional grants (from our own institutional resources) to Pell- Grant-eligible students with a 3.0 GPA or better so that they won’t have to take out loans to pay for tu- ition.” Pell Grants requires a stu- dent’s family have an annual in- come of $35,000 or less. Tuition at Marygrove averages $15,000 annually. Madonna University in Livonia has seen a considerable increase in stu- dents taking out loans and a hike in the amount borrowed in the last couple years, said Madonna Univer- sity spokeswoman Karen Sanborn. Annual tuition is $12,500, and more than half of the 4,100 students have loans. But 74 percent received >`S^O`ST]`b]ROg¸aY\]eZSRUSR`WdS\SQ]\][g a loan, grant or merit scholarship, she added. One hundred endowed scholarships have gone to students 7\dSabW\g]c`aSZTeWbVOU`ORcObSRSU`SST`][2OdS\^]`bC\WdS`aWbg with higher grade point averages. Madonna has programs to help lower-income students. Latinos de Livonia has given $66,000 to 48 His- panic students since 1990. The Southwest Women’s Educational Empowerment Program, funded by the Thompson Foundation, enables 3fSQcbWdS;0/´\Se^`]U`O[ some students to attend the univer- bVWaeW\bS`W\:Wd]\WO sity’s location in Detroit. Grand Rapids-based Davenport University, which recently opened a ;0/eWbVQ]\QS\b`ObW]\aW\( location in Livonia and also has a site in Warren and several other /QQ]c\bW\U cities throughout the state, said 4W\O\QS that 72 percent to 75 percent of its 6SOZbV1O`S;O\OUS[S\b students are using loans to pay for 6c[O\@Sa]c`QSa school. Average annual tuition for a Ab`ObSUWQ;O\OUS[S\b full-time student is $12,000. “We don’t have any specific pro- grams for replacing loans, but we ;OabS`]TAQWS\QS7\T]`[ObW]\/aac`O\QS are fully involved in federal govern- ment and Michigan financial aid and grants,” said David DeBoer, Davenport University executive di- 1ZOaaSaPSUW\SdS`gaSdS\eSSYa eeeROdS\^]`bSRc]`&&$& $ rector of financial aid. 4=@23B/7:A=<6=EB=/>>:G When a student needs financial AS`dW\UA]cbVSOab;WQVWUO\W\:Wd]\WOEO``S\O\R]\ZW\S aid, his office looks at all grants and scholarships to check the student’s eligibility. DBpageAD.qxd 10/23/2007 10:14 AM Page 1

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Page 16 CRAIN’S DETROIT BUSINESS October 27, 2008

FOCUS:BUSINESS EDUCATION Financial advisers disagree about the correct education programs

BY AARON SIEGEL AND Board of Standards Inc., adding that ry companies offer low pay. woman-elect of the CFP board. “For “Oakland University has an ex- JULIE DAWSO there are 58,000 certificate holders, “Hopefully, we can plug some young people to realize that finan- cellent program that helps you CRAIN NEWS SERVICE with the number growing 5 percent leaks in that pipeline,” Keller said. cial planning is a prepare for (the) certified finan- to 7 percent a year. Despite the concerns, some ad- degree is very cial planning exam,” he said. Financial advisers agree that re- Although advisers consider de- visers recognize the importance of important to the “Oakland University probably cruiting and training advisers is a gree programs the breeding ground certificate programs. well-being of con- does the best job locally in priority, but they disagree over for young talent, 30 percent to 50 “Both degree and certificate pro- sumers.” preparing people for financial whether a degree in planning is bet- percent of the students who attend a grams are important, and we cer- Paul Giles, se- planning. It is run impeccably. I ter career preparation than a cer- program don’t sit for the CFP exam- tainly need experienced folks who nior financial ad- was on the board there. You can tificate program. ination, he said. may have degrees in related areas viser with also do it independently online.” “We have to look at making sure Not surprisingly, some program who take the certificate program Ameriprise Finan- Giles also said solid sales and there is a pipeline of individuals directors worry that students don’t and have degrees in broad financial cial in Troy, said people skills are as critical as the right textbook preparation. and students coming into the indus- sit for the exam because the adviso- planning,” said Marilyn Dimitroff, Giles a certified finan- “Someone with a degree is defi- try,” said Kevin Keller, chief execu- ry business doesn’t offer a well-de- president of Capelli Financial Services cial planning program has practical nitely going to get a good look, but tive of the Certified Financial Planner fined career path, and many adviso- Inc. in Bloomfield Hills and chair- advantages. someone good in sales and under- standing people’s emotions and those techniques will have an ad- vantage,” he said. “Textbook portfolios don’t always work — what’s going on today is an exam- ple of that. It’s a lot more hand- holding. Someone coming into to this business with a degree will not guarantee success. There’s a lot more to what the career offers than just having the knowledge. “There are different outlets to go to and get information from, that’s all a part of being a good fi- nancial planner, helping people decipher what’s going on.” But David Aquilina, senior vice president for investments and fi- nancial planner with Leonard & Co. in Troy, said he believes his University of Michigan degree in fi- nance prepared him well for his career, and favors related degrees over certificate programs. “I can take my expertise and ex- perience, and I feel it has lent me the ability to read changes, in- come statements and balances,” he said. “I feel I can optimize busi- Want to leverage your business sense? Get a ness having a financial back- ground education. I prefer having a degree over having a certificate. “If we look at the problems to- fast-paced-ethics-based-hard-nosed- day, it comes down to what is on the balance sheets. With having a degree and understanding the today’s-realities-tomorrow’s-opportunities- markets, I feel it’s more impor- tant in how you manage your money today; financial planning is secondary.” leadership-focused-MBA-or-BTM-degree. Still, observers say quality of many academic programs needs to improve, as does the caliber of students who pursue degrees, said Take your business skills to the next level with University of Detroit Mercy’s Mark Johansson, president of the Financial Planning Association in MBA or Business Turnaround Management degree programs. Denver and a managing director at Harris SBSB in McLean, Va. The MBA provides: The BTM program gives you: “You need to be able to develop programs that give students who s an integrated approach to solve multifaceted s a leading-edge curriculum with the tools and are coming out of high school a business problems skills to help companies survive and thrive desire to become a financial s the ability to tailor degree program to meet s a faculty that includes knowledgeable profes- planner,” he said. specific business needs sors and turnaround practitioners To be sure, the industry will be discussing the academic re- s networking contacts through faculty and s four academic options to earn a graduate quirements for years, but it business leaders degree or certificate shouldn’t overlook the quality of s convenient evening/weekend classes to the training nonmatriculated re- cruits receive, educators said. accommodate career schedules “If the certificate programs can come up to the level of degree pro- grams, then I don’t feel that the profession is at a disadvantage,” said Ivan Roten, associate profes- For more information, contact us at 800-635-5020 or [email protected]. sor of finance, banking and insur- ance at Appalachian State University in Boone, N.C., who also heads the CFP Board’s council on educa- tion. “We want to have as many We want great things for you. academic programs as possible.” 800-635-5020 313-993-1245 http://business.udmercy.edu Compiled by Aaron Siegel, In- vestment News and Julie Dawso, Crain’s Detroit Business. 20081027-NEWS--0017-NAT-CCI-CD_-- 10/23/2008 3:13 PM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 17

FOCUS:BUSINESS EDUCATION Why Major in Business?

New IRS review of schools: Par for the “I wouldn’t have gotten the job I have now without my bachelor’s degree from Cleary.” course or run-up to more regulation? Michael Houttekier BBA Alumni Current MBA Management BY MIKE SCOTT information from the schools about how they report Student SPECIAL TO CRAIN’S DETROIT BUSINESS revenue and expenses from their trade or business ac- tivities, classify their activities as exempt or taxable Education associations are fearful a new Internal Many of Michigan’s high-growth occupations are activities, and calculate and report income or losses business related. Cleary University offers degrees to Revenue Service review will lead to expanded federal on taxable activities. audit practices at colleges and universities. match those careers. With associate, bachelor’s and The questionnaire is also meant to take an in-depth master’s degree programs (including our online MBA), But so far, local schools say the request is just par look at potential discrepancies between the way insti- Cleary can help you achieve your goals, quickly! for the course given recent tax changes and greater tutions operate and how they report Cleary offers an all-inclusive tuition and book policy, scrutiny of finances for all institu- their activities to a tuition price guarantee and convenient scheduling. tions. Campuses in Ann Arbor and Howell…and extension the IRS. The IRS will be sending about 400 sites including Dearborn and Flint. Discover Cleary I don’t think the “It appears to U.S. colleges and universities a se- today! “ be fairly compre- ries of compliance questionnaires IRS has any hensive, but it as part of the agency’s study of key doesn’t appear areas in the tax-exempt community. hidden agendas much of the infor- A Lifetime Investment…Immediate Returns Those questionnaires are part of here. This is a mation they are the IRS’ “Colleges and Universities asking for is go- www.whycleary.com 1.888.5.CLEARY Compliance Project” that will focus necessary ing to be that dif- on unrelated business income, en- ficult to provide,” dowments and executive compensa- and warranted said John Davis, Davis tion practices. They are being sent vice president of finance and trea- to a cross-section of private and pub- action. surer for Wayne State University. lic four-year colleges and institu- ” Designed specifically for insti- tions, including the University of Ed Jennings, tutes of higher education, this ques- Michigan, Michigan State University, University of Michigan tionnaire follows similar ones the Your Success is Oakland University and Wayne State IRS has required of health care orga- University. nizations and groups that issue tax-exempt bonds in recent months, said Ed Jennings, tax director for the Private nonprofit universities are generally ex- Our Business University of Michigan in Ann Arbor. The question- empt from paying taxes under Internal Revenue Code naire for colleges and universities is 33 pages and is section 501(c)3 and, like state universities, are subject due by Jan. 2. • Prepare yourself for a promotion to unrelated business income tax. The goal of these “It’s a pretty straightforward process, and a lot of • Add a business-related certificate to your questionnaires is to allow the IRS to better police tax- this has been generated by legislative action,” Jen- credentials exempt organizations, said IRS Commissioner Doug nings said. “I don’t think the IRS has any hidden • Choose from dozens of business programs Shulman. agendas here. This is a necessary and warranted ac- for your bachelor’s or master’s degree “The information gathered will help us identify is- tion, and I don’t think the concern is that the IRS is sues and areas that may need more outreach and edu- acting as ‘Big Brother’ but more that they are inter- • Attend classes that fit your schedule; days, cation or further scrutiny,” Shulman said. evenings and online Among other things, the questionnaire will gather See Review, Page 18 • Learn from professors who work in or own a business

School of Business 36600 Schoolcraft Rd. • Livonia, MI 48150 734-432-5339 www.madonna.edu

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Page 18 CRAIN’S DETROIT BUSINESS October 27, 2008

FOCUS:BUSINESS EDUCATION Review: Survey will focus on schools’ outside business interests ■ From Page 17

ested in our activities.” naire the agency sent to nonprofit business loses money. easy,” Jennings said. The questionnaire asks respon- hospitals and focuses heavily on “In my private practice, I saw all Oakland University has also re- dents to provide information on We’ll just have to the outside businesses that col- types of nonprofit tax returns, and ceived a letter from the IRS requir- such topics as executive compen- “ leges operate or work in partner- I can honestly say that higher edu- ing the Rochester-based institu- sation, endowments, taxable in- get our hands ship with, said Ronald Schultz, a se- cation doesn’t need to be as con- tion to comply with this come and more, Jennings said. It nior adviser at the IRS. cerned about compliance as other questionnaire, said university di- is part of an effort by the IRS to re- around those Colleges’ business activities nonprofits because they have gen- rector of media relations Ted quire compliance of not-for-profit changes. could include such things as run- erally had a good handle in this in- Montgomery. However, Oakland organizations, which weren’t as ” ning a hotel or a commercial re- formation,” Jennings said. has not yet determined how much regulated following the 1986 Tax search venture with a for-profit He doesn’t expect significantly time or added costs this compli- Act as for-profits. John Davis, company. Although the colleges added costs to his department be- Wayne State University ance will take, Montgomery said. Jennings began working at the are tax-exempt, some of their busi- cause of this required question- The IRS will not publicly report University of Michigan 10 years and not-for-profits. ness activities, like selling recre- naire. “My bosses know what our the data from individual institu- ago and before that worked in pri- This college survey is more de- ation-center memberships to local department is doing, so respond- tions, but the information could vate practice with both for-profits tailed than a May 2006 question- residents, are taxable, unless the ing to these questions will be trigger audits and penalties for the colleges. Compliance alerts could also be communicated to these in- stitutions as a result of the audits. Although most institutions col- lect some of the information that the IRS is seeking, many different and unrelated departments will have to coordinate efforts to as- semble the data, Davis said. There are more forms that high- er educational institutions must file today with the IRS than ever before, Jennings said. As a result, the growth in personnel and re- sponsibilities for his department has grown in the last decade. “I think it’s safe to say that in- ternal tax departments at univer- sities have grown steadily in the last 10-15 years,” Jennings said. “There’s just more for us to do.” An Oct. 3 letter sent jointly from the National Association of College and University Business Officers and the Association of Governing Boards of Uni- versities and Colleges indicated that those organizations are not pleased with this IRS requirement. The let- ter said the IRS questionnaire is “ostensibly an effort to learn more about how colleges and their foun- dations operate and whether they are complying with laws covering tax-exempt organizations.” The letter went on to say that the questionnaire or audit is likely to herald “a significant shift in the way colleges and universities are regulated and governed” and is “substantially more than a data- collecting exercise by the govern- ment.” The IRS’s goal, the letter says, is nothing less than a bid to “further regulate higher-educa- We admit we turn out a certain tion institutions,” including new rules, additional audits and more. kind of student. Successful. The two associations are urging each college that receives a copy of the questionnaire to share its re- At Wayne State University we give you an edge over the competition. That’s why sponses in confidence. They have jointly engaged the accounting firm our School of Business Administration was named among the best of Ernst & Young to analyze the re- sponses. Based on that analysis, the business schools in the country by the Princeton Review. See how a groups will decide whether to issue business degree from Wayne State University can give you an edge. Visit a public summary and report of the aggregated responses. business.wayne.edu or call 800-910-EARN. Wayne State University. Aim Higher. Davis said he doesn’t feel the questionnaire is designed to give IRS more direct control over and ac- cess to the spending policies of uni- versities. He does admit that it is Be sure to stop by one of our MBA program open houses: possible the IRS will require more regulations of such institutions Tuesday, November 11, 4pm—7pm Main Campus at the Fishbowl Lounge, Prentis Building moving forward. Wednesday, November 12, 4pm—7pm at Wayne State’s Oakland Center, Farmington Hills “The tax laws are changing all the time and becoming (more com- plex),” Davis said. “We’ll just have to get our hands around those changes so that we can be in compli- ance, just as we have for past tax changes.” 20081027-NEWS--0019-NAT-CCI-CD_-- 10/23/2008 3:06 PM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 19

FOCUS:BUSINESS EDUCATION Michigan Colleges Foundation wants schools, business to collaborate

Robert Bartlett, 51, has been But often we could see two or three you want donors to get behind pro- they’ve ever been. norities, and the corporate sector president of the Southfield-based institutions on an effort where stu- grams where they make use of your Whether you turn out to be an has stepped up to the plate to back Michigan Col- dents and faculty are working with students and faculty, is the liberal arts engineer, a businessperson or a those. But those were not new or in leges Founda- companies, working with nonprof- focus an advantage or a handicap? musician, having that awareness is response to Proposal 2. And there tion since Sept. its and environmental groups, and It’s both. It’s a distinct advan- so fundamental to success in a glob- has been a long-standing interest in 1. He previous- tage because of the values that are targeting their communities to al society and arguably an advan- making sure that pipeline remains ly was a Mem- make a difference. That will be created in our students, and many tage for stability to our country. well-supported, and not just within phis-based con- alongside of our efforts to raise of our institutions have roots in a Michigan. There’s just a realization sultant for money for scholarships and unre- religious tradition. But there’s How about Proposal 2 from 2006? Corporate Devel- stricted support, and it gives us a also a lot of training in global that that is the future of the coun- opMint and has way to show our donors how we as awareness — and thinking out of The MCF spoke out collectively against try. And we need to make sure we been directed institutions matter. the box and learning cultural dif- the ban on some race-weighted admis- are doing everything we can to by the MCF ferences — that students typically sions policies at public colleges even bring a balanced perspective (to board to orga- Corporations often want to get be- find as part of their generic study. though you weren’t directly affected. multiculturalism) there. nize an inter- hind programs that cultivate science, All these things are probably more MCF has a number of scholarship Chad Halcom: (313) 446-6796, collegial col- technology, engineering and math. If relevant in today’s world than programs that are specific to mi- [email protected] laborative Robert Bartlett, effort between Michigan MCF member Colleges schools and Foundation donor corpora- tions. He spoke with Crain’s reporter Chad Hal- com about this effort and other ed- ucation topics. PATENTED ALL STAR. The Michigan Colleges Foundation has seen the same falloff in corporate donations as many individual colleges — last year you raised $1.2 million compared with an average $1.5 mil- FRITZ BEIERMEISTER lion the preceding few years. Where Director of Business Sales & Marketing do you trace the root of the trend, and OnStar, a Division of General Motors how are you counteracting it? There is a refocusing in compa- Bachelor’s Degree in Marketing,1970 nies on the ways that their dona- Ferris State University tion dollars can advance their own goals. And I believe corporate phil- Master’s in Business,1981 anthropy is a bit of an oxymoron Stanford University anyway. Companies are in busi- ness to make money for their Awarded two recent patents shareholders, and to the degree they make philanthropic invest- ments, it should be to the interests of their shareholders. And when we facilitate those kinds of invest- ments, everybody wins. Now traditionally, corporate donors are the focus of our work. We don’t reach into individual do- nations as much because our mem- ber institutions do that and we try not to conflict with that. But I also believe there are individuals in our state who care deeply about ed- ucation but are not necessarily graduates of our institutions. They may want to support our institu- tions just for concern with the eco- nomic future of the state. To the extent those people are identified, they will be a target for us.

Tell us about the new strategy the MCF board agreed to pursue to launch some collaborative efforts among your member schools and then get donors behind them. We’re collectively one big uni- versity with a liberal arts tradi- tion, but how can we take advan- tage of that academically, not just in cost-saving measures? This is still an ongoing discussion with “I have been with GM for 38 years in the United States our board. We have a preliminary and Europe, including a role on the startup team for mandate to go forward with a Call or log on for more information strategy on this. In areas like the OnStar. It all began at Ferris, where I was taught to environment, we can get students www.ferris.edu/imagine involved in programs in communi- understand potentials and imagine opportunities. I’ve (800) 433-7747 ties, and maybe a Waste Manage- ment or BFI (Brown-Ferris Industries) been able to apply ideas from virtually every class I had Big Rapids, Michigan will get behind them. at Ferris. That foundation helped me imagine the enormous On the west side of the state, we can get university students and possibilities of the sophisticated OnStar technologies.” faculty involved with a Steelcase working on designs. Once we have those assets organized … we can think about programmatic efforts with companies. The model will seldom involve all 14 institutions. 20081027-NEWS--0020-NAT-CCI-CD_-- 10/23/2008 3:05 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS October 27, 2008

FOCUS:BUSINESS EDUCATION Corporate donations to colleges down, expected to keep falling

BY CHAD HALCOM donations to the down. Everyone has been holding give $5,000 or more in a better working to build some new relation- CRAIN’S DETROIT BUSINESS college are 47 their breath, but then letting it out economy. ships both with Ford and GM.” percent of in short bursts,” she said. “We Walsh also is paying close atten- David Ripple, vice president of Corporations have become a where they were haven’t really had donors getting tion to the ongoing merger talks development and alumni affairs at smaller piece of the philanthropic the same time a out of philanthropy, but they between General Motors Corp. and Wayne State University, said his de- pie at local colleges and universi- year ago. But might be more selective about Chrysler L.L.C., a struggling au- partment raised $53 million in the ties, and fundraising coordinators the college, what they support.” tomaker that accounts for about 10 fiscal year ending Sept. 30, $1 mil- expect the corporate share will which raised As an example, the college’s percent of all corporate giving to lion above its goal. shrink even further after Wall $1.4 million in coming Jeffery W. Barry Tribute Walsh, Olmstead said. But Olm- But he also said corporations Street’s tumble and forecasts of a fundraising last Dinner on Nov. 7 has meant a flur- stead said a merger doesn’t have to and foundations recently account- recession. Olmstead year, has come ry of sponsorship efforts this year. mean losing a Walsh donor. ed for only 40 percent of all giving, Audrey Olmstead, recently ap- to rely more upon individual Olmstead said Walsh hopes to as- “Chrysler has shown a commit- a percentage that may shrink this pointed vice president and chief alumni donations to pick up the semble 20-25 sponsors at a $2,500 ment to supporting the college,” she year in the wake of recession fore- casts and lost investments on Wall development officer at Troy-based corporate slack. level to host the event, compared said. “And we don’t know that will Street. Walsh College, said last week that “Corporate giving is slightly with 15 or so sponsors who might necessarily change. We have been “We haven’t seen a significant change in our corporate giving at the moment, but there are effects from an economic crisis that we wouldn’t expect to see immediate- ly,” he said. “We have seen some corporations asking for some ex- WHAT’S BEHIND THE “W”? tensions in their payment sched- ules recently, and we’ve been working with them on that.” WSU thus far has raised $882 million in donations to its Wayne First capital campaign, and Ripple said he still believes the university can reach $900 million before the campaign concludes at year’s end. But starting next year, he said, the fallout from the credit crunch on Wall Street will be more apparent and it “should present some chal- lenges” in future fundraising. Also a possible worry in the fu- ture is the economic welfare of in- dividual donors, fundraisers said. About 80 percent of WSU’s approx- imately 225,000 living alumni re- side in Michigan, according to Rip- ple, and Olmstead estimated 86 THE HAWORTH EXPERIENCE percent of all Walsh alumni live in the region. That could make fundraising even tougher if the state continues Great academics! Great experiences! Great careers! to lose jobs and assets, Ripple said. Stephen Brown, vice president for advancement at Southfield- based Lawrence Technological Uni- versity, said the school is extending payment schedules for its corpo- rate donors and expects to see less cash support and more planned giving, in-kind donations or struc- tured giving in the future. “I expect it may be tough, but donors still have their hearts in the right place,” he said. Lawrence Tech is in the silent phase of a $75 million-$100 million capital campaign, but Brown said he still expects the university Dr. James Eckert Tamara Warren Dennis M. Nally could raise enough money to enter Associate Professor of Sales Finance Major from Lansing, Mich. ’74, B.B.A. in Accountancy the public phase of the campaign and Marketing Chairman and Senior Partner, by late 2009. “My experience at WMU has On a related note, Brown said PriceWaterhouseCoopers LLP university endowment funds and “I have taught at three been life changing. The college “I started with this company other donor-funded investments universities, and my courses at has helped me elevate my have suffered with the stock mar- right out of college. The ket, but he hopes they will recover WMU are the most challenging way of thinking and maintain education I received at within about a year. I have ever designed. Yet every a standard of excellence to A recent report from Chicago- semester, my students rise to Western has served me based Northern Trust Corp. found prepare me for the realities of that year-to-date returns through incredibly well. It gave me a the occasion and succeed.” the business world.” June 30 were negative for the third tremendous foundation.” consecutive quarter for its data- base of 291 funds, which include 90 foundations and endowments with $91 billion in assets. This is the worst such stretch in more than a decade, said Craig Tome, product manager of North- The Haworth College of Business ern Trust risk analysis. Chad Halcom: (313) 446-6796, WMICHEDUBUSINESSs   [email protected] Sue Asci of Pensions & Invest- ments contributed to this report. DBpageAD.qxd 10/20/2008 3:31 PM Page 1

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Page 22 CRAIN’S DETROIT BUSINESS October 27, 2008 PEOPLE GAMING N DINING N ENTERTAINMENT N HOTEL N SPA ARCHITECTURE Daniel Schneider to director of produc- IN THE SPOTLIGHT tion, Grissim Metz Andriese Associates, Northville, from project manager, Vic- Sue Nudd has tor Saroki & Associates Architects, been named to Birmingham. the new Naturally festive. Heather Obrecht White to business position of vice manager, Stephen Auger + Associates president for Architects Inc., Lake Orion, from se- the personal nior gallery administrator, The Frank client H. Boos Gallery Inc., Bloomfield Hills. management Bradley Alvord, ar- department in chitect, Lindhout the Associates AIA Birmingham P.C., Brighton, to Nudd office of member of the Oswald Cos. firm’s board of di- Nudd, 49, had been office head for rectors. Detroit private client services at Marsh USA Inc., where she EDUCATION handled risk management for the Mert Aksu to affluent, including professional dean, the Universi- athletes. Alvord ty of Detroit Mer- She earned her Certified Insurance cy School of Den- Services Representative tistry, Detroit, from executive designation in 1994 and has associate dean. served on the advisory boards for Kevin McAlpine to director of develop- leading underwriters in Michigan.

ment, College of Fine Performing and Cleveland-based Oswald offers ‘ Communication Arts, Wayne State risk-management, property and University, Detroit, from deputy direc- Tis the season... to start planning your holiday party. tor, Triangle Foundation, Detroit. casualty insurance and other services on six continents. N Whether you’re planning an intimate gathering for FINANCE Tina Kozak to vice 25 or elaborate event for 1,500, our four-diamond Angela Acosta to senior manager, president, Franco Public Relations resort can accommodate your holiday party! state and local tax practice, Grant Thornton L.L.P., Southfield, from man- Group, Detroit, ager, federal, state and local tax, DTE continuing as Call 1.888.7.EAGLE.7 ext. 55385 for details. Energy, Detroit. lead for automo- Experience More. Patrick Skiles to senior vice president, tive and technolo- N MT. PLEASANT, MI N SOARINGEAGLECASINO.COM Commercial Banking Group, TCF gy accounts. Bank, Livonia, from senior vice presi- Shane Wright to Enterprises of the dent, upper middle market lending, associate creative Saginaw Chippewa Indian National City Bank, Troy. director, Berline, Tribe of Michigan John Worthington to vice president, fi- Bloomfield Hills, nance manager and controller, Fifth Kozak from senior art Third Bank, Southfield, from controller, supervisor. Fifth Third Bank, Columbus, Ohio. Frederick Bartel to senior vice presi- MEDIA dent and treasurer, Flagstar Bank, Mark Pennington to program director, Troy, from first vice president, Bank WRIF 101.1 FM, Detroit, from music di- of America, Troy. rector. Paul Carter to senior manager responsi- ble for client administration and busi- NONPROFITS ness development, ShindelRock, Novi, Lesley Skinner to director of human from partner, Virchow Krause, South- resources, Common Ground, Bloom- field. field Hills, from human resources manager, the Greater Chicago Food MFBEFST HEALTH CARE Depository, Chicago. George Yoo to as- sociate center di- SERVICES rector of clinical Harold Kuhn, president, Park Motor affairs and chief Sales Inc., Detroit; and Daniel Baker, se- medical officer, nior vice president, Ziebart Interna- Barbara Ann Kar- tional Corp., Troy; to the board of direc- manos Cancer tors; Ziebart International Corp., Troy. Center, Detroit, Karen Pertuso to managing director, remaining as vice RK International Inc., Grosse Pointe, president of med- from special agent, special operations ical affairs and group, FBI, Detroit. leader of the Head Yoo Ben Hockenberry to director, Venator and Neck Multi- Technical Search, Troy, from manager. disciplinary Team at Karmanos and as- sociate professor and vice chair of the TECHNOLOGY department of otolaryngology-head and neck surgery, Wayne State University Meetesh Patel to president, Kinetic School of Medicine, Detroit. Power Corp., and member of the board of directors, Octillion Corp., Auburn LAW Hills, from founder and manager, MVP Law Group P.A., Burtonsville, Zana Tomich to Md. partner, Tomkiw Dalton plc, Royal Oak, from senior PEOPLE GUIDELINES associate. Announcements are limited to MANUFACTURING management positions. Nonprofit Robert Zalupski to and industry group board vice president, fi- appointments can be found at nance-operations, www.crainsdetroit.com. Send TriMas Corp., submissions for People to Joanne As a CEO, you can’t always turn to colleagues and friends for opinions and Tomich Bloomfield Hills, Scharich, Crain’s Detroit Business, advice. When you become a TEC member, you tap into unbiased insight from from vice president, finance and trea- 1155 Gratiot Ave., Detroit, MI someone who shares your experience, or who has been there before. It’s like surer. Also, Laura Pecoraro to vice 48207-2997, or send e-mail to having a team of your own professional advisors to help guide the way. president of business planning and [email protected]. Releases analysis, from group controller, Ce- must contain the person’s name, You don’t have to go it alone. Start the right conversation today. quent, Bloomfield Hills. new title, company, city in which the person will work, former title, www.tecdetroit.com ;/,>693+»:3,(+05.*,64,4),9:/0769.(50A(;065 MARKETING former company (if not promoted Steve Chavez to executive vice presi- from within) and former city in 586.443.5880 (U(MÄSPH[LVM=PZ[HNL0U[LYUH[PVUHS^^^]PZ[HNLJVT dent, executive creative director, Don- which the person worked. Photos er, Southfield, from vice president, cre- are welcome, but we cannot ative director, Saatchi & Saatchi, Los guarantee they will be used. Angeles. 20081027-NEWS--0023-NAT-CCI-CD_-- 10/23/2008 3:03 PM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 23 CALENDAR partner, Warner Norcross & Judd attorney, Hails Law P.L.L.C.; and Everything), Blah Blah Blah Inc. The 11:30 a.m.-1:15 p.m. Nov. 13. Inforum, TUESDAY L.L.C.; Robert Last, vice president of Colleen Theuerkauf, financial adviser, Detroit Zoo, Ford Education Center, the Detroit Free Press, and the Troy OCT. 28 operations and communications, FEV Raymond James & Associates. Com- Royal Oak. $20 Detroit Regional Chamber of Commerce. Richard DeKas- Inc.; Gary Mach, director of innova- munity House, Birmingham. $45 Chamber members, $40 nonmembers, er, National City chief economist; Leadership Michi- tion, ESD; Patti Jones, regional col- members, $65 others. Contact: (877) $65 for Maverick Marketing season Richard Dugas, CEO, Pulte Homes; Car- gan: Driving Busi- lege talent retention initiative direc- 633-3500. pass (available for chamber members la Walker-Miller, president and CEO, ness Success. tor, Detroit Regional Chamber; and only). Contact: Kalisha Gaines, (313) WalkerMiller Energy Services; and 7:30-10:30 a.m. En- Andrew Levin, deputy director, Michi- 596-0392. Tom Walsh, business columnist, the De- gineering Society The Election Project: Newsweek’s Ex- gan Department of Labor and Eco- troit Free Press of Detroit. Josh clusive Report on the 2008 Election . Townsend Hotel, Birm- nomic Growth. The Inn at St. John’s, Linkner, CEO, Campaign. Noon. Nov. 7. Adcraft Club Birthing a Hospital. 8-9:30 a.m. Nov. 12. ingham. $50 members, $65 others. Table ePrize.com. ESD Plymouth. $25 members, $35 others. of Detroit. With a Newsweek magazine Women in Communications of De- of 10, $625. Add $10 after Nov. 9. Con- headquarters, Contact: (248) 353-0735, ext. 112. special election correspondent to be troit. Gerald van Grinsven, president tact: (313) 578-3230. Southfield. $95 announced. Troy Marriott. $40 mem- and CEO; and Elisabeth Schnell, direc- members, $125 bers, $35 junior members, $20 students tor, brand management, Henry Ford The Energy We Need to Sustain Ameri- others. Contact: with ID, $45 others. Contact: (313) 872- Health System. Henry Ford Design ca’s Competitiveness. 11:30 a.m.-1:30 7850. Center, Commerce Township. $15 Linkner (248) 353-0735, ext. COMING EVENTS p.m. Nov. 13. Detroit Economic Club. Women in Communications and 155. The Sandwich Generation: Caring for Christopher Kearney, chairman, presi- PRSA members, $25 others. Contact: Me While Caring for Them. 8-10:30 a.m. dent and CEO, SPX Corp. Troy Mar- How to Stand Out From the Herd. (248) 582-8465. Building Your American Dream. 5-9 Nov. 6. Inforum. Laurel Felsenfeld, Noon-1:30 p.m. Nov. 10. Detroit Re- riott. $40 members, $50 guests of mem- p.m. Asian Pacific American Cham- professional geriatric care manager, gional Chamber Maverick Marketing bers, $75 others. Contact: (313) ber of Commerce. Aging Answers L.L.C.; Carine Hails, series. Terri Langhans, COE (Chief of Economic Outlook 2009 Luncheon. 963-8547. Rick Inatome, CEO, Infilaw Sys- tems, Tim Hilligoss of Clay- ton & McKervey P.C., and Raj Kothari of Seneca Partners. Em- bassy Suites Ho- tel, Southfield. Regular registra- Inatome tion: $35 members and students, $40 others. Day of event: $50. Contact: (248) 844-4100.

WEDNESDAY OCT. 29 Inforum Networking and New Member Welcome. 9-11 a.m. An opportunity to hap is ... network with Inforum board and staff members and learn about the opportu- nities Inforum offers to help women lead and succeed in business. Russell ... your Michigan-based partner Industrial Center Bazaar, Detroit. $20 members, $25 others. Inforum mem- bers who have joined in the past six months may attend for free. Contact: HAP is more than just a card you carry. HAP is your partner, creating solutions that go Leslie Herrick, (877) 633-3500. beyond your health care needs.We design affordable health plans with you in mind. THURSDAY Health Care Plans All HAP plans offer: OCT. 30 • Flexible and comprehensive benefits • Online health tools Selling All Over the World. 8-10 a.m. Asian Pacific American Chamber of • Extensive network of the leading • Disease management Commerce and the partners of the De- doctors and hospitals • Health education and worksite wellness troit Regional Chamber’s diversity or- • Preventive care • Plus, emergency coverage wherever you travel ganizations. Sara Coulter Canty, direc- tor, Detroit U.S. Export Assistance Center; Naren Balasubramaniam, Global Crosswalk Inc.; and Fern Es- PPO pino, president and CEO, Espino En- With our PPO, you get the flexibility to seek care from providers within or outside of the preferred network terprises. Shenandoah Country Club, without referrals.This popular, convenient plan provides freedom of choice, a large network of hospitals and West Bloomfield Township. $10 mem- bers, $20 others. Contact: www. physicians, emergency coverage wherever you go and preventive services – all at an affordable price. detroitchamber.com. Individual Coverage Crain’s Detroit Business 2008 40 Un- SOLO offers great individual health coverage. It’s perfect for entrepreneurs, college grads, early retirees or der 40. 5-9 p.m. Please join Crain’s for our annual 40 Under 40 event. The Re- those between jobs. Go online and take a look! serve/Big Rock Chophouse, Birming- ham. $75. $40 for 40 Under 40 alumni. SM Contact: (313) 446-0300. Value Plans Want to save on your current health care premiums? Many businesses today are turning to HAP’s Value PlansSM for the savings. Find out what thousands of people already know about the “value” in these plan designs. MONDAY NOV. 3 Medicare Advantage Plans The Race for Talent II-Keeping the HAP’s Medicare Advantage plans offer employers and Medicare-eligible individuals solutions with: Best in Michigan. 11:30 a.m.-5:30 p.m. • Medical and prescription drug coverage at an affordable price MICHauto and the Engineering Soci- ety of Detroit. Lou Glazer, president, • Preventive care Michigan Future Inc.; Robert Cleary, • Emergency coverage wherever you travel • Your choice of the leading doctors and hospitals CALENDAR GUIDELINES You’ll enjoy affordability and peace of mind at a time when you need it most. More Calendar items can be found on the Web at www.crainsdetroit. com. Please send news releases for Calendar to Joanne Scharich, Crain’s Detroit Business, 1155 www.hap.org Gratiot Ave., Detroit, MI 48207- 2997, or e-mail jscharich@ crain.com. You also may submit Calendar items in the Calendar Alliance Health and Life Insurance Company is a health insurance subsidiary of Health Alliance Plan. PPO is a product of Alliance Health and Life Insurance Company and HAP Preferred, Inc., both are wholly owned subsidiaries of Health Alliance Plan. Individual health plans (SOLO) are offered through Alliance Health and Life Insurance Company, Inc. Health Alliance Plan and Alliance Health and Life Insurance section of crainsdetroit.com. Company each have a Medicare contract with the federal government. 20081027-NEWS--0024-NAT-CCI-CD_-- 10/23/2008 3:02 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 27, 2008 BUSINESS DIARY ACQUISITIONS and reporting products by combining nection Enterprise editorial software. Trucost’s methodology with NSF’s en- E-IP L.L.C., Troy, has acquired Euro- MBC Global of Rochester Hills, Cool and vironmental certification, verification pean-based BirchBob International S.A. Associates of Waterford Township, and and auditing services. IP’s listing business. PAT Engineering of Doha, Qatar, have CareTech Solutions, Troy, signed an agreed to explore, develop and execute CONTRACTS information-technology outsourcing local and international projects. agreement with Port Huron Hospital, The Bieri Co., a Detroit retail real es- Fannie Mae has added Fabrizio & Port Huron. tate consulting firm, has been re- Brook P.C., Troy, to its network of ap- Biggby Coffee, East Lansing, has tained by The Mall of America to pro- proved default-servicing attorneys in signed contracts that will result in two vide real estate advisory services to the state of Michigan. new Biggby retail locations for the De- the Bloomington, Minn., retail and en- DesignHub Inc., Saline, designed and troit area during the next year. tertainment complex. RENDERING COURTESY OF PLANTERRA CORP. developed the new Web site for the Arbor Hospice, Ann Arbor, has an- SMZ PR Partners, Troy, has added Planterra Corp., West Bloomfield Township, has broken ground on its 23,000- Program for Automotive Labor and Ed- nounced public-relations and market- Oak Park-based movie theatre chain square-foot Planterra Conservatory. It will house tropical ornamental foliage, or- ucation (pale.cargroup.org), a pro- ing partnerships with Franco Public MJR Digital Theatres to its client ros- chids and pottery in three adjoining greenhouses and will grow plants for gram of the Center for Automotive Re- Relations Group, Detroit, and Ulrich ter. SMZ PR Partners also has become Planterra’s interior landscaping business. It will be open for public visits. search, Ann Arbor. Pinciotti Design Group, Toledo. public-relations agency of record for NSF International, Ann Arbor, an- WoodWing Software, Detroit, an- San Diego-based Internet marketing a licensing agreement to provide auto- Advanced Photonix Inc., Ann Arbor, nounced a global project with Trucost nounced that the student newspaper of firm Search Optics Inc. motive manufacturers with a thermo- has established a new credit facility plc, London, that will provide environ- the University of Washington, Seattle, Inteva Products L.L.C., Troy, and A. plastic elastomer blend technology for with The Private Bank and Trust Co., mental measurement, management has installed WoodWing’s Smart Con- Schulman Inc., Akron, Ohio, announced interior manufacturing processes. Chicago. TCF Bank Michigan, Livonia, has been chosen for the third consecutive year as the official bank of Eastern Michi- gan University athletics. Trott & Trott P.C., a Farmington Hills law firm, has been selected as a mem- ber of Fannie Mae’s new Foreclosure and Bankruptcy Attorney Network. EXPANSIONS Michigan First Credit Union, Lathrup Village, opened a branch at 19200 Wyoming in Detroit. America Group Retirement Strategy Centers, a Southfield-based wealth- management firm, has affiliated with financial services firms The Reaume Group in Troy and The Dhillon Group in Auburn Hills. ere’s to you. MERGERS St. Luke’s Health Ministries, Water- ford Township, and Canterbury-on-the- Lake, a Waterford Township continu- ing care retirement facility, have merged into one organization, to be known as Canterbury-on-the-Lake. MOVES PM Environmental Inc., from Hazel Park to 4080 W. 11 Mile Road, Berkley. Telephone: (248) 336-9988. Kramer-Triad Management Group L.L.C. has moved its Farmington Hills office to 40000 Grand River Ave., Suite 100 in Novi. Henry Business Solutions, a business coaching and intellectual talent men- toring firm, to 280 N. Old Woodward Ave., Suite 104, in Birmingham. Tele- phone: (248) 220-1805. NAME CHANGES DAS Professional Services, Troy, to Dynamic Advisory Solutions. Common Ground Sanctuary, a Bloom- field Hills-based nonprofit that helps people in crisis, to Common Ground. NEW PRODUCTS Thank you, commercial banking customers for choosing Huntington. Our steadfast CerMet Lab Co., Southfield, is manu- facturing and distributing CerMet, a dedication to helping customers bank successfully has earned us four Greenwich patented nano-particle ceramic condi- tioner that is formulated for cost-effec- awards for excellence in commercial banking. After 142 years of service we’re tive ceramic treatment of engines and other mechanisms, without engine proud to be leaders in our industry. But we’re even more proud to be working disassembly or related downtime. with commercial banking customers who are leaders in theirs. Helping you build NEW SERVICES Bright House Networks of Michigan, successful businesses is not as much a job as an honor. Livonia, has added six high-definition channels to its cable television ser- vice: ABC Family, Disney, CNN, Life- time Movies, ESPNU, and Palladia.

DIARY GUIDELINES Send news releases for Business Diary to Joanne Scharich, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or send e-mail to jscharich@crain. 1-866-921-4990 | huntington.com com. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are Greenwich Associates is a leading worldwide strategic consulting and research firm specializing in financial services. Excellence award selection was based upon the results of the 2008 Middle Market Business Banking Study conducted by Greenwich welcome, but we cannot guarantee Associates. Banks selected for an award had to have a significantly different percentage of “excellent” ratings than the mean for all banks at a 90% confidence level. The Huntington National Bank is an Equal Housing Lender and Member FDIC. ,® Huntington® and A bank invested in people® are federally registered service marks of Huntington Bancshares Incorporated. ©2008 Huntington Bancshares Incorporated. they will be used. DBpageAD.qxd 9/25/2008 4:31 PM Page 1

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October 27, 2008 CRAIN’S DETROIT BUSINESS Page 27

A CONVERSATION WITH Who are Detroit’s top financial advisers? Robert Stulberg of Merrill Lynch leads a pack of advisers chosen for their client relationship-building Tom and performance, according to Barron’s McGraw, Winner’s Circle. Profiles begin on Page 30. McGraw Wentworth Finance

McGraw Wentworth is Michigan’s largest employee group benefit brokerage and consulting firm with $10.8 million in revenue in 2007. With 59 employees in offices in Troy and Grand Rapids, McGraw Wentworth serves primarily companies with between 100 and 10,000 employees. Managing risk Reporter Jay Greene spoke with McGraw Wentworth President Tom McGraw about the top issues facing employee benefit firms. What are the biggest challenges in the employee benefits industry? Employers are faced with more regulation, more complex plans, a management variety of financing techniques, new cost-control initiatives, and managing massive amounts of data. They face dwindling profit margins and reduced corporate staffing. With slimmer Premiums are operations, midsized employers are seeking more support. Our challenge is to find, train and develop enough down, competition employee benefit consultants and advisers to support demand. Has the health benefits market is up and clients are changed for Southeast Michigan employers? Some employers are adopting changes; others are standing pat. Some are adopting nervous, but some strategies like wellness initiatives, spousal restrictions-surcharges and consumer-driven health plans. But insurance agencies are median levels of deductibles, co- pays and co-insurance have remained stable. Employee contributions for medical and dental doing quite well coverage are creeping higher. What are three strategies employers IMAGES.COM can use to hold down medical and health care cost increases? One, benchmark your plan against other BY JAY GREENE found a way to increase its business through a organizations. Two, adopt strategies Insurance mergers likely to continue CRAIN’S DETROIT BUSINESS combination of acquisitions and internal like wellness and disease growth. Total company revenue for 2007 was Mergers and consolidations within the management programs, spousal t’s not an easy time to work in the insur- $340.7 million. insurance industry in Detroit have been surcharges and consumer-driven ance and asset-management business. In July, Meadowbrook completed its acqui- fairly steady the past 10 years, said Nick health plans. Three, update your plan I Premiums are down. Competition is sition of Columbus, Ohio-based ProCentury Valenti, CEO of Southfield-based Michigan regularly. fierce. Clients are nervous about the finan- Corp., a combination that nearly doubled the Financial Cos. Inc. Will the financial meltdown on Wall cial markets. size of Meadowbrook to about “Because today’s Street and expected recession affect But it’s also proven to be a $800 million of gross premi- margins are not as big companies and their employee benefit prime time for firms to grow SECTORS WITH ums written. as they were, it requires plans? Absolutely. If we are not in a their business through merg- “We have grown our busi- size and economies of recession now, it certainly appears ers and acquisitions or ex- SALES INCREASES ness by creating long-term scale to compete,” imminent. Employers should be panded product lines. ■ Employee benefits relationships with our cus- careful with every expense, and that Valenti said. “I expect Several ■ tomers,” Cubbin said. “If includes how much is spent on the trend will continue Directors and officers Detroit- you aren’t losing your cus- employee benefits. It also appears to bigger and more effi- insurance area firms tomers, you can add prof- likely that companies will reduce cient organizations. ■ Life insurance for small their workforces and could adjust Valenti report dra- itable business to your com- More independent orga- benefit plans midyear. matic business owners pany. We make sure we nizations are under pressure to join larger jumps in retain our customers, and How competitive is the employee organizations, and that won’t stop.” revenue we have grown 10 percent to benefits industry in Southeast Valenti said Michigan Financial isn’t SECTORS WITH and expan- 15 percent a year.” Michigan? With more than 5,000 currently looking at acquiring other agen- licensed agents in the region, the sion of staff SALES DECLINES Nick Valenti, CEO of cies. “We have a plan to recruit experi- employee benefits consulting and geo- ■ Southfield-based Michigan enced financial reps, and we are also look- Property-casualty insurance. industry is very competitive. Cubbin graphic Financial Cos. Inc., said the ing to expand into some other smaller Premium declines are most reach. key to success in a soft mar- Do you project growth in the industry towns,” he said. dramatic in the automotive and Some are positioning them- ket is having experienced in- for 2009? We believe there is a In 2004, Michigan Financial was ac- construction industries and growing need for expert support for selves as a value-priced op- surance representatives quired by Boston-based John Hancock Life nonautomotive manufacturing. human-resource departments. tion; others are pushing a who provide top-notch cus- Insurance Co., but it operates under the Employers are looking for assistance heavy emphasis on customer tomer service. Michigan Financial name. when faced with dwindling margins, service. “We provide good support here to our reps Aon Group in Michigan, meanwhile, sold more complex regulations, increased “The main challenge in our business right along with training and education to help a 25-member group in an effort to stream- health care costs and multiple vendor now is to grow at all, because most of the in- them grow their practices,” Valenti said. relationships. line last year. dustry has seen reductions in revenue be- Ranked No. 12 with $7.7 million in annual In July, Meadowbrook Insurance Group cause it is a more competitive pricing environ- revenue, an increase of 33 percent from $5.1 Inc., a Southfield-based risk-management ment,” said Robert Cubbin, CEO of million in 2006, Michigan Financial has and specialty insurer, completed its acqui- If you know someone Meadowbrook Insurance Group Inc., a Southfield- grown steadily for three reasons, Valenti interesting you sition of Columbus, Ohio-based ProCentury based risk management and specialty insurer. said: efforts to market to small-business would like Jay Greene Corp., a combination that nearly doubled Ranked No. 1 in 2008 on the Crain’s Detroit owners life insurance policies; increases in to interview, call the size of Meadowbrook. Business list of Largest Business-Insurance employee benefit and 401(k) plans; and hiring (313) 446-0325 or ProCentury is a specialty property and write jgreene@ Agencies with $104.9 million in insurance 20 percent more representatives and expand- casualty insurance holding company. crain.com agency revenue in 2007, up 5 percent from — Jay Greene $99.8 million in 2006, Meadowbrook has See Insurance, Page 28 20081027-NEWS--0028-NAT-CCI-CD_-- 10/23/2008 4:48 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS October 27, 2008

FOCUS:FINANCE Insurance: Some area agencies doing well ■ From Page 27 ing geographically. Dan Deighton, managing di- In 2004, Michigan Financial was rector and Detroit office head of acquired by Boston-based John Han- Marsh, said the economy has cre- cock Life Insurance Co., a move that ated challenges for insurance has enhanced business growth. In companies that rely on industry September, a Troy-based Hancock growth. Ranked No. 4, Marsh re- office merged into Michigan Fi- ported 2007 revenue of $49.7 mil- nancial, adding 24 employees and lion, a 4 percent increase from A Window to the World $1 million in sales. $47.6 million in 2006. “We have a lot of good financial “Marsh spe- Discover a world of leadership and educational excellence advisers in that group,” Valenti cializes in risk, Where service to community and faith prepare us for tomorrow said. “We will be able to expand and we live in a Where milestones are not destinations, but starting points into Lansing, Williamston and Where character is both developed and revealed world that is Ann Arbor, where we weren’t rep- full of it. That is resented that well.” abundantly Welcome to Academy of the Sacred Heart Besides insurance, Michigan Where Learning is a Window to the World clear in today’s Financial offers other services, economic envi- including employee benefit de- ronment,” said sign, asset management, individ- Deighton. OPEN HOUSE ual money management and es- Deighton In Southeast SUNDAY, NOVEMBER 9, 2008 tate planning. About one-third of the compa- Michigan, Marsh has large num- 1:00-3:00 p.m. Liturgy at Noon ny’s revenue comes from insur- bers of clients in the automotive The Academy of the Sacred Heart was founded in 1851 and is Michigan’s oldest independent ance and the remainder from as- industry, health care, construc- school. Located at 1250 Kensington Road in Bloomfield Hills, it is a Catholic, college- set-management services. tion and higher education, he preparatory school for girls (Age 3-Grade 12) and boys (Age 3-Grade 8) of many cultures and said. faiths. The Academy is a member of the Network of Sacred Heart Schools, which includes 21 LeAnne Mc- schools in the U. S. and affiliation with the Society of the Sacred Heart in 44 countries around Corry, South- Clients have been challenged the world. For more information call 248-646-8900 or visit us on the Web at www.ashmi.org. field-based Aon by lack of access to credit, afford- Group’s resident ability of capital and concerns managing direc- over supply chains and increas- tor, said the ing costs of raw materials, he company had its said. best year in De- “Premiums continue to fall, but troit in 2007 as it we see a shift a little bit as we focused on offer- close out 2008 because the proper- McCorry ing innovative ty insurance market shows signs solutions and delivering client val- of tightening with a number of ue. losses from hurricanes like Ike Aon is ranked No. 2 by Crain’s, and Gustav,” Deighton said. with revenue of $53.4 million in Hurricane Ike was the third 2007, a 14 percent increase from most costly in U.S. history with $46.8 million in 2006. With its head- $12 billion in onshore losses, and quarters in Chicago, Aon has 125 Gustav exceeded $4 billion in people in Michigan and 11,600 na- claims. tionally. Marsh also reduced staff by “We had a very good year in about six employees to 199 in 2008 adding clients,” McCorry said. “In in an effort to improve efficien- a soft market, our focus is on pro- cies, Deighton said. viding the best value for the price Meadowbrook’s Cubbin said to our customers.” even with today’s challenges, dur- Aon primarily focuses on rein- ing the first six months of the surance, property and casualty in- year, premium revenues for the surance and risk management, company have increased about 20 We can and human capital management percent. consulting, she said. “Despite the soft market with “We saw growth in all lines, es- sum up our pecially in property-casualty and competitive pricing, we are hav- directors and officers insurance,” ing a very good year so far,” he advantage she said. said. One of Aon’s new capital solu- Deighton said the level of com- tions offers clients several levels of petition for high-end clients in in one word. insurance protection if a carrier Detroit is very high. becomes insolvent, McCorry said. “There is a lot of loyalty be- “Some clients are comfortable tween clients and client teams with their insurance carrier for in- and not a lot of turnover,” he said. surance like directors and officers “Detroit is a town that maintains insurance, but some want that ex- relationships, but with today’s tra protection,” she said. economy, everyone needs to be “If they are concerned about flexible and look for opportuni- that product line, we could offer ties.” them a solution to wrap around Valenti said the financial melt- their policy.” down on Wall Street and the $85 While Aon is spending up to $300 billion takeover of New York- million annually on expanding based American International Group Ask about our globally, McCorry said the compa- has created client nervousness. SelectAdvantage ny in Michigan has become leaner. “The times require our repre- Trust your wealth Model Portfolios.* In 2007, Aon in Michigan sold a 25- sentatives to have better and member group to another agency. more frequent communications management to 734.242.2205 “We reduced overall staff (to with clients,” he said. “We have 125), but we increased our overall www.mbandt.com seen the volume of calls in the last people who get it. book of business by talent manage- month go up. There is no question ment,” McCorry said. “We look at about that. People are nervous.” * Not FDIC Insured. Not Bank Guaranteed. May Lose Value. our mix of business when deciding Jay Greene: (313) 446-0325, Not Guaranteed by any Government Agency. Not a Bank Deposit. when to grow or divest.” [email protected] 20081027-NEWS--0029-NAT-CCI-CD_-- 10/23/2008 4:49 PM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 29

FOCUS:FINANCE Alcos Inc. grows after being acquired by Brown & Brown

BY JAY GREENE health care and Medicare set-aside services. CRAIN’S DETROIT BUSINESS Another benefit to joining Brown & Brown is that it gave Alcos access to capital Eugene LoVasco, president of Alcos Inc., for expansion, LoVasco said. has been through many changes in his 30 BlackBerry® CurveTM 8330 years in the insurance business. Over the past year, Alcos has recently ac- But not as many as the past 18 months, quired: Smartphone when he and the two other majority share- Ⅲ Cardinal Insurance Agency, Shelby Town- holders in Sterling Heights-based Alcos, a ship, in October, with its five employees. once independent agency, decided to sell Headed by Bob Hambright, Cardinal brings their shares in February 2007 to Tampa- $834,000 in commercial lines revenue, • 2.0 megapixel camera with flash & 5x digital zoom based Brown & Brown Inc., the nation’s sixth $30,000 in personal lines revenue and the ad- largest independent insurance company. dition of Greater New York Mutual Insur- • Telenav® Maps and Telenav® GPS Navigator Now ranked No. 3 by ance Co., a commercial lines carrier. Crain’s with $51 million in Ⅲ Smith-Peabody-Stiles Insurance Agency • Media Player with microSD™ memory support revenue, up 179 percent with offices in Fenton and Peabody, in Janu- from $18.1 million when it • Easy-to-use intuitive trackball navigation was independent in 2006, ary. Smith-Peabody brings annual revenue Alcos/Brown & Brown of $5 million. has grown primarily LoVasco said two other agencies are cur- • Integrated Email, Phone, SMS, & Browser through acquisitions. It re- rently considering term sheet offers and the ports 100 local employees. deals are expected to be completed by the • Bluetooth® Wireless Technology “Joining Brown & end of the year. Brown made us more effi- LoVasco “The challenges in this soft market are • Broadband Access Connect capable cient,” LoVasco said. “We not unique to us with pricing down 5 per- have used some of their best practices.” cent to 10 percent,” LoVasco said. “When • 35–key backlit QWERTY Keyboard Prior to joining Alcos, LoVasco worked most of our income based on commission, for the family-run LoVasco Financial Ser- when our clients pay less, our revenue is vices, which became part of Alcos. less.” LoVasco said he and his two principal LoVasco said Southeast Michigan’s strug- shareholders, brother John and John Mar- FREE shall, sold to Brown & Brown to raise cash gling economy also affects business growth, Tips & Tricks to buy out several retiring shareholders. but it depends on the product lines. For ex- ample, Alcos’ property casualty product line class Terms were not disclosed. when you purchase your “Rather than taking on additional debt, has dropped 12 percent in 2008, but health BlackBerry® smartphone from we decided to find a suitable partner,” Lo- care is up 10 percent, so the overall drop is the BlackBerry® Store from Wireless Giant! Vasco said. only 2 percent, he said. “(Brown & Brown) were looking to ex- “Take the building sector. If they aren’t pand in Michigan,” LoVasco said. “About 20 building houses we don’t have as much percent of their revenue comes from em- workers’ compensation and builders’ risk ployee benefits and they think it is a growth (insurance). We are fortunate because area in Michigan.” health care benefits are up and we have Alcos focuses on insurance and reinsur- been successful in attaining new accounts.” Receive $180 value, when you activate your ance products and services, risk manage- Jay Greene: (313) 446-0325, ment, third-party administration, managed [email protected] BlackBerry® smartphone at the BlackBerry® Store from Wireless Giant®

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BY AMY WHITESALL “Something like that makes your day,” SPECIAL TO CRAIN’S DETROIT BUSINESS Kulhavi said. World’s First These are not easy days to be a financial In the midst of a week when the financial adviser, but advisers like Kulhavi — one of ® markets were jumping up and down hun- six Merrill Lynch vice presidents named to Authorized BlackBerry Store dreds of points a day, Merrill Lynch Senior the Winner’s Circle list of Detroit’s best (see Now Open in Farmington Hills Vice President John Kulhavi got a card at related story, Page 30) — have spent years his Farmington Hills office. It was from a nurturing relationships with their clients. client in Virginia, and it read, in part: “Dear In turbulent times, those personal connec- 31380 Orchard Lake Rd, Farmington Hills, MI 48334 John, During these uncertain times, I want tions can make all the difference. to tell you how much the work you and your “Normally we spend 75-80 percent of our (Southeast corner of Orchard Lake Rd & 14 Mile Rd) team do is appreciated. … time managing portfolios and the rest of the I pray you will be able time managing emotions,” Kulhavi said. “In withstand all the trials times like this, it’s reversed. We’ve tried to 248·855·5777 you endure.” be as proactive as possible each day, contact- Kulhavi, a retired U.S. ing X number of clients just to reassure *Our Surcharges (incl. Fed. Univ. Svc. of 11.4% of interstate & int’l telecom charges (varies quarterly), 7¢ Regulatory & 85¢ Administrative/line/mo., & others Army Reserve brigadier by area) are not taxes (details: 1-888-684-1888); gov’t taxes & our surcharges could add 5% - 36% to your bill. Activation fee/line: $35 ($25 for secondary them. History also proves that the best Family SharePlan lines w/ 2 yr Agmts) IMPORTANT CONSUMER INFORMATION: Subject to Customer Agmt, Calling Plan, [rebate form] & credit approval. Up to general and decorated course of action is to stay the course, as $175 early termination fee, [up to] 45¢/min after allowance & $1.99/MB (incl. Mobile Web ads). Offers & coverage, varying by service, not available everywhere. Vietnam helicopter pilot, painful as it may be.” Network details & coverage maps at vzw.com. Nights 9:01 pm – 5:59 am M-F. Limited time offer, if applicable. Rebate takes up to 6 wks. Expires in 12 months. ® ® ® ® has been with Merrill Merrill Lynch clients and advisers got an- ©2008 Verizon Wireless.©2008 Research In Motion Limited. All rights reserved. BlackBerry , RIM , Research In Motion , SureType and related trademarks, names Lynch almost 40 years. and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. Used under license from Research In other shock in September, when Bank of Motion Limited.All other trademarks are the property of their respective owners. See verizonwireless.com/Bluetooth for details. Kulhavi Above and beyond are fa- America bought the brokerage after Lehman miliar territory for him, Brothers collapsed. Company policy pro- especially when it comes to his clients. And hibits employees from discussing the merg- here was one, worried enough about him to send a card. See Merrill Lynch, Page 30 20081027-NEWS--0030-NAT-CCI-CD_-- 10/23/2008 4:50 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS October 27, 2008

FOCUS:FINANCE Merrill Lynch: Personal finance Barron’s picks ■ From Page 29 er, but it’s possible not much will change for advis- Don Gill Jr., a first vice president in the Bloomfield ers aside from adding a Bank of America logo to Hills office. “It gives them the comfort level to make their business cards. good decisions.” Detroit’s leading Merrill Lynch Chairman and CEO John Thain Those relationships mirror a company loyalty that will join Bank of America as president of the com- has kept Merrill Lynch’s six Detroit Winner’s Circle bined company’s global banking, advisers with the company essentially their entire ad- securities and wealth-manage- vising careers. Gill, the youngest at 42, has been with ment divisions, according to a the company 19 years. Kulhavi and Senior Vice Presi- financial advisers Reuters report. That essentially dent Dana Locniskar each have 39 years in. Locniskar puts Merrill Lynch’s chief in con- started out as a funeral director, another field where These Top 20 fi- satisfaction and trol of the businesses the compa- he helped people through intensely emotional times. nancial advisers assessments by ny was already running. Together, the six represent 182 years worth of service were chosen by co-workers and Frank Migliazzo’s clients are with Merrill Lynch in the Detroit area. The Winner’s Cir- clients. For more among the most And that counts for something. cle by Barron’s as Detroit’s lead- information, see www.wcorg.com. affluent in Mer- First Vice President Marie Vaner- ing advisers based on criteria For a list of the Top 40 for Detroit, such as assets managed, customer see www.crainsdetroit.com/focus. Thain rill Lynch’s fold. You end up ian graduated from Michigan State Though nontradi- “ University in 1976 with an econom- tional assets shield them from some connecting with ics degree, but said no one was hir- 1. Robert Stulberg when he got out of the Army in of the market’s volatility, they’ve ing 22-year-old women to work as 1969 and, in 1971, started the com- Senior vice president still got a lot to lose. As Migliazzo, a some people, and financial advisers. For a year and pany’s first team of advisers. More senior vice president in the Auburn a half, she worked in her family’s Merrill Lynch, Bloomfield Hills than 30 percent Hills office, points out, if you’ve got before you know it restaurant in Hamtramck, putting Stulberg has been with Merrill of Merrill $59 and you lose $5, it’s not the end on a suit and heading out whenev- Lynch for 25 years. His team man- Lynch’s advis- of the world. If you’ve got $120 mil- you become a part er she got an interview. ages about 450 accounts with $2.2 ers work in lion and you lose 20 percent, that’s a “You’ll find a lot of people in this billion in assets. teams. lot of money. So he also was touched of their family. business go from place to place; I’ve “We love tax-free bonds, high- Kulhavi’s to get calls after the merger was an- ” been very fortunate that I’ve not quality municipal bonds,” Stul- team rotates to nounced from clients who just want- Frank Migliazzo, had to change the name on my busi- berg said. “We’re big believers in keep someone in ed to make sure he was OK. Merrill Lynch ness card. There have been offers asset allocation and diversifica- the office for extended hours and “The relationships are clearly the over the years, but after I inter- tion. Our goal is to get clients works on Saturdays during the fall, winter and spring. The group most rewarding part of the job,” Migliazzo said. “You viewed for a year and a half, I felt a certain amount of where they want to be in the most manages $950 million in assets. go out and try to drum up business and you end up loyalty to the person who gave me an opportunity.” conservative way possible.” connecting with some people, and before you know it She extends the same kind of regard to her clients, Stulberg sold commercial real you become a part of their family, and they really trust which lately has meant a lot of hand-holding, a lot of estate in Chicago for four years be- 4. Stephen Fox you.” empathy, a lot of time reminding clients that the mar- fore his father, financial adviser Merrill Lynch’s emphasis on face-to-face meet- ket has always gone through downturns and always Director of wealth management David Stulberg, persuaded him to ings helps its advisers establish the kind of relation- recovered. Smith Barney, Troy come work for Merrill Lynch. ships that weather the rough spots, they say. Face “I feel like we’ve been extremely successful edu- Fox advises those thinking of in- time gives advisers a truer sense of their clients’ cating clients,” she said. “We have yet to have any- vesting about a basic premise: needs and their risk tolerance. That makes for a one liquidate a portfolio. Last night I was on the 2. Dana Locniskar have a plan and goals. What are more appropriate portfolio and, ultimately, a phone until 11:30 at night, calling clients on my cell they trying to accomplish with Senior vice president of investments smoother passage through turbulent times. phone, but it was important. This (market) is gut- their investments? A person can Merrill Lynch, Detroit “I look back at the confidence and security those wrenching for me to watch. I can only imagine what get into trouble without specific conversations give clients in times like this,” said it’s like for people who are confused.” Locniskar started selling bonds goals, Fox said. in 1968 to bolster the income he Advisers re- was earning in the family business view portfolios as a funeral director. At the time, on a regular ba- near the end of a bull market that sis and are in started in the 1950s, every shoe contact with salesman and their clients garage mechan- routinely. Fox ic was selling also believes in mutual funds. proactive contact versus reactive But few have contact, saying the objective is to stuck around as know clients well enough to antici- DECADES OF BUILDING TRUST long or been as pate their needs. His team man- successful as ages $1.26 billion in assets. Since 1979 Future Fence Company has been serving the needs and becoming the Locniskar, whose group manages “It’s our responsibility to reach out and make sure all questions premier choice of architects, engineers and contractors in the commercial, industrial, $3.4 billion in assets. “We do a little psychology, a lit- and concerns are addressed in a municipal and government sectors of construction, perimeter control and site furnishings. timely and proactive way,” Fox We have been working on innovative changes to follow the dynamics of the new economy tle marriage counseling, a little job placement, a little family therapy said. we’re all working in. Please note our additional divisions and the products that are now available along the way. Money has a lot of WKURXJKWKHFRPSDQ\WKDWKDVVHUYHG\RXU¿UPVXFFHVVIXOO\IRU\HDUV meanings for people. It’s not just 5. Frank Migliazzo Future Fabricating, our fabrication facility utilizes job systems that have been approved numbers on a net-worth state- DQGFHUWL¿HGE\WKH$PHULFDQ,QVWLWXWHRI6WHHO&RQVWUXFWLRQ $,6& IRUDOOIDEULFDWLRQXSWRDQG ment. Senior vice president-investments Merrill Lynch, Auburn Hills CERTIFIED LQFOXGLQJWKH6%5UDWLQJ VLPSOHEULGJHV  “My goal is to still be vital and We have metal craftsman on hand that specialize in polished stainless products such as advising people when I’m 80,” he Migliazzo spent six years as an accountant before following the WKHH[TXLVLWHUDLOLQJWKDWJUDFHVWKHQHZ'HWURLW,QWHUQDWLRQDO 5LYHU)URQW2XUSURGXFWVLQFOXGH said. advice of his father, a Ford Motor railings for all applications, custom arches, gates, pedestrian bridges, public, private and corporate Co. tool-and-die maker, and seek- VFXOSWXUHV¿HOGLQVWDOODWLRQDLGVDQGIDEULFDWHGSLHFHSDUWV 3. John Kulhavi ing a job he loved. The search ulti- 2XU'XUD&UHWHGLYLVLRQIHDWXUHVD3&, 3UHVWUHVVHG&RQFUHWH,QVWLWXWH &HUWL¿HGSURGXFWLRQ First vice president, financial mately led to Merrill Lynch. SODQWVLWXDWHGRQWKHVDPHJURXQGVDVRXUPDLQRI¿FHDQGRXUIDEULFDWLRQSODQW'XUD&UHWH consultant Migliazzo works with ultra-high American Concrete Institute® has a complete offering of precast screen and sound walls, retaining walls and is capable of Merrill Lynch, Farmington Hills net worth producing architectural and structural concrete elements. A decorated Vietnam veteran, clients in Mer- Please consider submitting your bid requests for miscellaneous, ornamental, stainless and Kulhavi was a senior captain — in rill Lynch’s pri- vate banking RWKHUPHWDORULHQWHGSURMHFWVWR)XWXUH)DEULFDWLQJDQGGRQ¶WIRUJHWDERXW'XUD&UHWHIRU charge of 27 other captains — dur- ing his last assignment on active and investment prestressed and precast concrete items of both architectural and structural nature. groups. He’s duty. been with the “We all received the same pay, company since UTURE ABRICATING yet by being in that position I tend- Concrete Solutions 1979. Migliazzo is responsible for ed to put in the most time and have business development on his team • • www.futurefabricating.com   ZZZGXUDFUHWHQHW   the most responsibility,” said Kul- and has chaired two advisory havi, who would rise to the rank of councils to management, but says 5HJHQF\3DUN'ULYH:DUUHQ0LFKLJDQ brigadier general in the U.S. Army he’s most proud of his eight-person 3KRQH  •)D[  • www.futurefencecompany.com Reserve. Kulhavi joined Merrill Lynch See Advisers, Page 32 DBpageAD.qxd 10/23/2008 12:20 PM Page 1

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Page 32 CRAIN’S DETROIT BUSINESS October 27, 2008

CRAIN'S LIST: LARGEST FOCUS:FINANCE BUSINESS-INSURANCE AGENCIES Advisers: Barron’s picks leaders Ranked by 2007 revenue ■ From Page 30 Company Employees team and its track record. His 8. William Messner ported in the media,” he said. Address in Detroit team manages $2.1 billion in When changes in the market Phone; Web site Revenue Revenue area as of Senior vice president Rank assets. occur, they will revisit and as- Top local executive 2007 2006 Jan. 2008 Morgan Stanley, Birmingham “We’ve always been big on sess their clients’ portfolios. Meadowbrook Insurance Group Inc. $104.9 $99.8 227 face-to-face planning,” he said. At Morgan Stanley, local ad- Wile’s team manages $2.5 bil- 26255 American Drive, Southfield 48034-6112 visers continue to call all 1. “You figure the only way you lion in assets for clients. (248) 358-1100; www.meadowbrook.com clients and are trying to reas- Robert Cubbin, president and CEO can really tell what kind of sure them to risk people are willing to take 11. David Clark Aon Group 53.4 46.8 125 continue to Managing director, client adviser 2. 3000 Town Center, Suite 3000, Southfield 48075 is if you sit down, face-to-face.” focus on the (248) 936-5200; www.aon.com J.P. Morgan Private Client LeAnne McCorry, resident managing director long term Services, Bloomfield Hills with their B 6. Steven Riga “In investment planning, we Brown & Brown Insurance 51.5 18.1 216 investments, 35735 Mound Road, Sterling Heights 48311 Senior vice president- work with the clients and said Mess- (586) 977-6300; www.alcos.com investments make sure what we implement 3. ner. Paul Glance, president, Troy; Jim Peabody, president, UBS Financial Services, is tailor- Fenton; and Eugene LoVasco, president, Sterling He tells his clients to think Birmingham made with Heights of investing as three blocks When the market is in a our clients’ 49.7 47.6 199 making a whole: long-term, in- Marsh wild roller-coaster ride like it needs,” said 600 Renaissance Center, Suite 2100, Detroit 48243 termediate-term and short- has been in recent weeks, Riga Clark. “Our 4. (313) 393-6800; www.marsh.com term. Portfolios are down Dan Deighton, managing director and Detroit office tells clients job is mak- across the board, but they are head it’s best to ing sure we down less for clients who have are listening Valenti, Trobec, Chandler Inc. 23.1 23.5 128 be a buyer followed this model, he said. 1175 W. Long Lake Road, Troy 48098 and interactive on a one-on- of equities The last thing people should 5. (248) 828-3377; www.vtcins.com; www.gswins.com one basis with our clients,” and slowly do is panic, because three to Alan Chandler, CEO and president; Terry Griffin, Clark, partner of Wile, said. COO; and Robert Trobec, CFO move into six months down the road as- Another strategy they use is credit prod- set values will be back up. Cambridge Consulting Group 19.0 17.0 105 to look at wealth transaction ucts. The Messner’s team manages 6. 101 W. Big Beaver, Suite 600, Troy 48084 strategies to reduce or freeze (248) 743-4300; www.cambridge-cg.com best game plan is to broaden $2.75 billion in assets. tax liability. Clark’s team Kenneth Hale and Albert Papa, co-chairmen and diversify your dividend “If selling will make you manages $2.5 billion in assets. Alliant Insurance Services 18.9 C 18.9 26 payers, Riga said. sleep better, then sell to the 7. 101 Southfield Road, Birmingham 48009 Riga advises clients who are sleeping point. If you’re invest- (248) 540-3131; www.alliantinsurance.com sitting on cash to put it to ing long term, you should hold 12. Carl Crimmins Hylant Group 18.0 18.0 102 work right now. It may take on to what you have,” he said. Senior vice president 8. 24 Frank Lloyd Wright Drive, Suite J4100, Ann Arbor several months to realize Morgan Stanley, Birmingham 48105; (734) 741-0044; www.hylant.com gains, but you have to have a Mark Miller, regional vice president-Michigan 9. Paul Hack Crimmins believes it is im- longer-term time horizon, he portant to always be available 11.0 10.0 60 Gallagher/Rains said. Riga’s team manages Senior vice president- to clients. Right now, advisers 30150 Telegraph Road, Suite 408, Bingham Farms investments 9. about $1 billion in assets. are trying to 48025; (248) 203-0626; www.therainsgroup.com Raymond James & Associates, Bryan Hirn, area president UBS Financial Services ad- make them- Farmington Hills visers are staying in contact selves even McGraw Wentworth 10.8 10.1 59 Hack said Raymond James 10. 3331 W. Big Beaver Road, Suite 200, Troy 48084 more often, especially with the more acces- (248) 822-8000; www.mcgrawwentworth.com way the market is right now, & Associates has a history of sible, Crim- Thomas McGraw, president and principal Riga said. advising clients to invest in a mins said. long-term Kapnick Insurance Group 10.8 10.5 34 “We meet face-to-face with “We are call- 26100 American Drive, Southfield 48034 our clients. You have to reas- structure. ing every- 11. (248) 352-4455; www.kapnick.com sure people during these They also body and talking to all our Robert Weiland, executive vice president-corporate try to edu- clients,” Crimmins said. His and Stephen Peck, president-benefit services times,” Riga said. cate their team manages $222 million in Michigan Financial Cos. Inc. 7.7 5.1 48 clients about assets. 12. 28411 Northwestern Highway, Suite 1300, Southfield 7. Don Gill Jr. keeping a 48034; (248) 827-1300; www.michiganfinancial.com First vice president-investments calm ap- Nick Valenti, president and CEO 13. Marie Vanerian Merrill Lynch, Bloomfield Hills proach and a big-picture per- First vice president Wells Fargo Insurance Services D 6.0 7.0 35 Gill, a former member of the spective about market cycles. Merrill Lynch, Detroit 13. 3000 Town Center, Suite 1900, Southfield 48075 Regardless of the markets, (248) 353-5800; www.acordia.com Financial Planning Associa- Vanerian, a lifelong Detroi- Kristina Rickert, president and managing director tion of Michigan’s board, em- advisers try to create asset al- ter, was trained as a classical phasizes a holistic approach to location that does not violate violinist but decided when she Ralph C. Wilson Agency Inc. 5.4 5.0 43 the client’s risk tolerance. 26026 Telegraph Road, Suite 100, Southfield 48086 wealth man- was about 12 that she didn’t 14. This approach has proven (800) 638-1174; www.rcwa.net agement. want to earn a living playing successful in the past, Hack Stephano Vannelli, president and CEO His team violin. Her father owned a said. Hack’s team manages Korotkin Insurance Group 5.3 5.2 48 handles $745 restaurant in Hamtramck and $425 million in assets. 26877 Northwestern Highway, Southfield 48033 million in followed stocks. When the 15. “That is the strength of our (248) 352-5140; www.korotkin.com assets for newspaper came, he’d have Kenneth Korotkin, president practice: asset allocation in- about 300 her sit down and read the vestments for each client indi- The Huttenlocher Group 4.9 5.1 38 clients. stocks to him. Vanerian found 16. 1007 W. Huron St., Waterford Township 48328 vidually,” he said. it fascinating that you could (248) 681-2100; www.huttenlochergroup.com “Our typical client is ap- David Huttenlocher, CEO proaching retirement, they’ve put your money to work for created their wealth and 10. Tabb Wile you. J.S. Clark Agency Inc. 4.5 4.5 27 Vanerian joined Merrill 25900 W. 11 Mile Road, Suite 210, Southfield 48034 they’re looking for an adviser Managing director-senior 17. Lynch 31 years ago. She spe- (248) 355-9600; www.jsclarkagency.com to help them plan out and give investment adviser cializes in public and private Joel Clark, CEO and president them counsel over the next 30- J.P. Morgan Private Client pension plans, foundations Insurance Advisors 2.5 3.0 25 40 years,” he said. Services, Bloomfield Hills and endowments, family of- 18. 8884 Commerce Road, Commerce Township 48382 Gill started as an accoun- Wile said the advisers at (248) 363-5746; www.agencyadvisors.com fices and 401(k)s. Her four-per- tant with Arthur Andersen, JPMorgan Private Client Ser- Paul Serwinek, president and CEO working with business owners son team manages $2 billion in vices be- assets for clients. Goodman Venegas 1.9 2.1 14 during audit season and with lieve in a 19. 2800 Livernios, Troy 48083 litigation consulting in the off- “I think what makes a good (248) 740-9090; www.goodmanvenegas.com more holis- day to me is when we’ve season. Working with busi- tic ap- reached out to as many people ness owners and understand- The list business-insurance agencies is an approximate compilation of the largest such agencies in Wayne, proach. as we could and given the best Oakland, Macomb, Washtenaw and Livingston counties. All information was obtained from the agencies. ing their need to save money They seek to advice we can,” Vanerian said. Agencies with headquarters in metro Detroit are listed with total company revenue. Agencies with headquarters led him to change careers. outside metro Detroit are listed with revenue of their local operations only. This is not a complete listing but the be proactive “There came a point where most comprehensive available. NA = not available. in present- 14. David Brazen B Brown & Brown Insurance acquired Alcos Inc. in March 2007. instead of helping clients ing investment opportunities Senior financial adviser C Crain's estimate. count their money at the end to clients, said Wile. D Acordia was acquired in May 2001 by Chicago-based Wells Fargo Insurance Services and formally changed of the year, I wanted to be “We make sure we are call- Brazen, Kennelly, Cooper, Matatov & Associates, Troy its name in February 2007. more involved in helping them ing our clients proactively and LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH grow it and manage it,” Gill explain what we see happen- The strategy at Brazen, Ken- said. ing instead of what is being re- See Advisers, Page 34 DBpageAD.qxd 10/23/2008 11:52 AM Page 1

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34%2,).'(%)'(43s586.977.6300 !..!2"/2s734.995.4444 www.alcos.com 20081027-NEWS--0034-NAT-CCI-CD_-- 10/24/2008 11:17 AM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 27, 2008

CRAIN'S LIST: LARGEST PENSION FUNDS FOCUS:FINANCE Ranked by 2007 assets Advisers: Defined- Barron’s picks leaders benefit/ 2007 2006 Defined- ■ From Page 32 total assets total assets contribution Rank Pension fund, address, phone ($000,000) ($000,000) assets 2007 nelly, a financial advisory Every factor is looked at in re- advising strategies, depending General Motors Corp. $133,835 $118,992 $110,237 practice of Ameriprise Financial gards to financial goals and an- on the client’s life circum- 1. 300 Renaissance Center, Detroit 48265 $23,598 Services Inc., hasn’t changed alyzed stances. For retirees who are (313) 556-5000 much over time, said Brazen. specifically relying on their portfolio for The company relies heavily on towards the their prima- Ford Motor Co. 57,517 57,282 45,917 asset allocation and believes in client’s ry income, 1 American Road, Dearborn 48126 11,600 diversifying against different needs. They they are cur- 2. (313) 322-3000 kinds of in- will not rently in vestment ve- make a rec- short-term Chrysler L.L.C. 33,760 28,584 26,809 hicles, such ommenda- treasuries 1000 Chrysler Drive, Auburn Hills 48326-2766 6,951 3. (248) 576-5741 as bonds, tion without first looking at and cash be- portfolios, the long-term plan. Norris’ cause they CDs and team manages $380 million in don’t want to double-dip. They Delphi Corp. 14,979 14,444 11,113 5820 Delphi Drive, Troy 48098 3,866 cash. assets. “Long-term needs are revisit investments every 15 4. (248) 267-8642 They have met first, and then everything months and make adjust- made sure clients had a num- falls into place,” she said. ments. DTE Energy Co. 4,800 4,200 3,200 ber of liquid assets readily Younger clients, meanwhile, 5. 2000 Second Ave., Detroit 48226 1,600 available in bank accounts. 17. Pamela Shaw are being advised to stay in- (313) 235-4000 “Clients have been heavily vested. If they are planning on involved in the financial plan- First vice president-investments retiring in 10 to 15 years, they Trinity Health Corp. 4,610 NA 3,330 ning process, and we planned UBS Financial Services, may need to make tactical 1,280 27870 Cabot Drive, Novi 48377 for downturns in the market,” Dearborn changes at that point. For 6. (248) 489-5004 Brazen said. Shaw recommends that her those clients they have to talk The firm relies heavily on clients continue to focus on in- off the ledge, those that really Detroit Policemen & 4,369 4,000 4,369 educational events and com- dividual goals. 0 want to sell, Giles said the idea 7. Firemen Retirement System munication with clients. Com- Shaw also tries to keep in 908 Coleman A. Young Municipal Building, Detroit is to make sure the sale is at 48226; (313) 224-3362 munication has been critical contact with her clients as fre- the time of loss, not current in the past few weeks, he said. quently as valuation. Detroit General Retirement System 3,849 3,500 3,849 His team manages $300 mil- 0 possible and “We advise them to stay the 8. 908 Coleman A. Young Municipal Building, Detroit lion in assets. 48226; (313) 224-3362 tries to get course and not look at short- back to term losses brought upon us everybody Robert Bosch L.L.C. 1,947 NA 978 15. Todd Knickerbocker quickly,” Giles said. during mar- 38000 Hills Tech Drive, Farmington Hills 48331 969 Giles’ team manages $212 9. (248) 876-5000 Senior vice president- ket hours. million in assets. investments Advisers 1,704 1,360 1,030 Raymond James & Associates, call and talk to as many people Blue Cross Blue Shield of Michigan/ Northville 10. Blue Care Network 674 as they can on an ongoing ba- 20. John Low 600 E. Lafayette Blvd., Detroit 48226 Knickerbocker said the firm sis, she said. Shaw’s team man- Managing director, (313) 225-9000 tries to be proactive. Because ages $211 million in assets. investment officer Visteon Corp. 1,665 1,356 1,052 of new e-mail technology, like “The most important client Wachovia Securities, Bloomfield 613 11. 1 Village Center Drive, Van Buren Township 48111 audio and video e-mail, advis- service at this time is to com- Hills (800) 847-8366 ers can communicate with municate directly with our Low said Wachovia’s cus- clients in new ways. clients,” Shaw said. tomer service mindset pro- Masco Corp. 1,550 1,357 529 They are motes “constant dialogue with 21001 Van Born Road, Taylor 48180 1,021 advising in- 12. (313) 274-7400 18. J.R. Hesano clients vestors to Senior investment adviser, vice around their stay in the president goals and ob- Operating Engineers Local 324 1,549 1,438 1,453 market; it’s 37450 Schoolcraft, Livonia 48150 96 J.P. Morgan Private Client jectives 13. (734) 462-3660 probably Services, Grosse Pointe more of a while trying At JPMorgan Private Client risk not to to create a 1,521 1,403 1,053 Services, advisers strive to Wayne County Employees be a participant. Investors al- unique and Retirement System 468 provide best-in-class services 14. ways need to remember to different 400 Monroe, Suite 320, Detroit 48226 to their (313) 224-2822 build a diverse portfolio as client experience.” “We refer clients, said well, he said. to our clients as being part of a Carpenters Pension Fund, 1,448 1,376 1,095 Hesano. 353 Knickerbocker’s team man- club,” he said. 15. Detroit & Vicinity “We’re do- 2075 W. Big Beaver Road, Suite 7, Troy 48084 ages $242 million in assets. In terms of investment strat- (248) 844-4200 ing the same egy, Low said his team man- thing we ages portfolios from a strategic Federal-Mogul Corp. 1,353 1,275 758 16. Marja Norris have always 16. 26555 Northwestern Highway, Southfield 48034 595 asset allocation perspective, (248) 354-7700 Senior vice president- done. We try with a “tactical asset alloca- investments to keep our clients up to date, tion overlay.” This is designed and we try to stay ahead of the Oakland County Employees 1,305 1,224 841 UBS Financial Services, to meet clients’ risk profiles 17. Retirement System 464 Birmingham markets,” he said. and long-term wealth accumu- 1200 N. Telegraph, Pontiac 48341 Hesano’s team manages $600 lation objectives, he said. (248) 858-5215 Norris said the company’s goals are to provide clients million in assets. Low started with Prudential BorgWarner Inc. 1,269 1,129 353 with superior service and a Securities in 1995, which 18. 3850 Hamlin Road, Auburn Hills 48326 917 merged with Wachovia. (248) 754-9200 quick turnaround time. They 19. Paul Giles also try to prepare their clients Low’s team manages $245 for life-changing events, like Senior financial adviser million in assets. TRW Automotive Holdings Corp. 1,177 1,177 870 Ameriprise Financial, Troy — Profiles compiled by Amy 12001 Tech Center Drive, Livonia 48150 307 retirement, by analyzing their 19. (734) 855-2600 cash flow for the long term. Giles uses three different Whitesall and Julie Dawso

ArvinMeritor Inc. 1,124 1,010 817 2135 W. Maple Road, Troy 48084 307 20. (248) 435-1000 CRAIN’S SEEKS DONORS TO NONPROFITS This list is an approximate compilation of the largest pension funds in Wayne, Oakland, Macomb, Washtenaw Have an item hanging around 10 edition. Included as part of corporate donor. Please send and Livingston counties. It is not a complete listing but the most comprehensive available. The names and the office that should be that coverage is the launch of a your examples to Sherri Begin assets of the funds were taken from the list of the nation’s top 1,000 pension funds in Pensions & donated to a nonprofit? That Wish List on the Web that at [email protected] or Investments, a sister publication of Crain’s Detroit Business. A defined-benefit plan provides a definite photocopier in the corner or seeks to match donor Jennette Smith at formula for calculating retirement-benefit amounts, such as a flat amount per year of service or a percentage of those extra linens might provide companies and nonprofits in [email protected] salary times years of service. A defined-contribution plan is a retirement plan in which contributions are made to a much-needed boost to an need. We’re also on the lookout for an individual account for each employee. The retirement benefit depends on the account balance at retirement. area organization. To kick it off, we’d like to hear new capital campaigns by Number of plan participants encompasses active and inactive participants. Unless otherwise indicated, these Crain’s Detroit Business will from nonprofits that already nonprofits and educational numbers were provided by the funds themselves. NA = not available. publish an estate planning and have benefited from receiving institutions. Send information LIST RESEARCHED BY PENSIONS & INVESTMENTS, ANNE MARKS AND JOANNE SCHARICH philanthropy report in our Nov. an item or service from a including financial goal, 20081027-NEWS--0035-NAT-CCI-CD_-- 10/24/2008 11:16 AM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 35 Area health care groups in running for piece of $7M award

BY JAY GREENE needs and social services. manage the practice and the busi- CRAIN’S DETROIT BUSINESS “Our vets are mostly located in ness of the centers.” We will look to rural areas, and we find when they Altarum traces its history back Altarum Institute, an Ann Arbor- “ go back to those areas they may to 1946 as Willow Run Laboratory in based research and consulting organizations that are well find services that are not well- Ypsilanti. In 1972, Willow Run be- firm, will award $7 million to se- connected,” he said. “We would like came the Environmental Research In- lect health care organizations in engaged with the issues to make sure health care and social stitute of Michigan, and in 2001 Southeast Michigan and across the service delivery is integrated.” ERIM acquired Vector Research country to study issues related to and are already Altarum also is seeking to foster Inc obesity prevention, veterans’ care ., a health care information sys- and community health centers. having success. innovation in community health tem company, and changed its Lincoln Smith, Altarum CEO, ” centers, which are either free or re- name to Altarum. said decisions could be made in Lincoln Smith, Altarum Institute duced-cost local clinics that provide With 250 employees, Altarum December and January. care to the poor and uninsured. also has offices in Atlanta; Port- “We work with paying clients to plex set of conditions,” Smith said. Smith said the project should fo- “Our notion is to work with land, Maine; San Antonio; and solve operating, policy and strate- “There are services for them at VA cus on how best to coordinate the community health centers and Washington, D.C. gy challenges,” Smith said. “But medical centers, but they are not care veterans need to address help them introduce electronic Jay Greene: (313) 446-0325, there exists a space in between for integrated.” housing issues, rehabilitation medical records, improve quality, [email protected] research and to come up with best practices.” Each project will be funded for two years at between $2 million to $2.5 million, he said. “We will look to organizations that are engaged with the issues and are already having success,” Smith said. NationalCity.com/investments Smith said Altarum will not ac- cept open solicitations for the pro- jects. The company is working to iden- tify candidates with such organi- zations as the U.S. Department of De- fense, the Michigan National Guard, the Michigan Primary Care Associa- tion, the Detroit Wayne County Health Authority, the Michigan Department of Community Health and other advi- sory groups. “At the end of the two years, we will collect strategies and see how To prepare for successful the changes were,” Smith said. “We hope to publish the findings of the success stories your next chapter, and disseminate them more broad- ly so they can be replicated.” Called “mission projects,” Smith we need to said the first will focus on prevent- ing childhood obesity by supporting health-promoting changes in clini- cal, community, corporate and gov- know your story. ernmental sectors. “Childhood obesity is a great ex- ample of a systemic challenge with How can we help you prepare for retirement if we don’t know a lot of upstream issues that in- you? At NatCity, our investment representatives take the time volve schools, families, safe neigh- borhoods and health care,” Smith to understand your goals. Your risk tolerance. And of course, said. your time horizon. We’ll look at all the choices to help build your Dr. Paul Ehrmann, a Royal Oak primary care doctor who founded retirement strategy. As well as what to do once you actually are the Children’s Health Initiative Pro- retired. We offer objective financial guidance on a wide range Retirement Investments 401(k) Rollovers Insurance Investments 401(k) Retirement gram in 2002, said Altarum’s fund- of financial solutions. Prepare now for a happy ending. ing is much needed. His program encourages children to eat healthi- er and exercise. Call us at: 1-866-NCB-IRA1 (1-866-622-4721) “There is an unmet need for treating child- hood obesity,” he said. “If we had the funding at the front end, we could dis- seminate the message. It is Ehrmann tough because the community groups and schools we work with don’t have a lot of funding.” The program brings together schools, health care providers, businesses and municipal govern- ments. Altarum’s second project will seek to improve accessibility and Investment products are: coordination of community health and social services for veterans. Not FDIC Insured s Not Bank Guaranteed s May Lose Value “Over the last five to six years, some 900,000 reserve members Brokerage products and services are offered through NatCity Investments, Inc., a registered broker dealer, member FINRA and SIPC, have separated from service, and and subsidiary of National City Corporation. Insurance products and annuities are offered through National City Insurance Group, Inc., a licensed insurance agency. ©2008, National City Corporation® these folks come home with a com- 20081027-NEWS--0036-NAT-CCI-CD_-- 10/24/2008 2:15 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS October 27, 2008 Anxiety over market Did You Get the Message? First Tech Direct named to 2008 Microsoft Dynamics® Inner Circle Top 1% of Microsoft Dynamics® Partners Worldwide comes to workplace

BY JAY GREENE employee benefits with Alcos/Brown AND BOB ANKENY & Brown in Sterling Heights, said CRAIN’S DETROIT BUSINESS stress levels have risen for the com- ® Microsoft Dynamics pany’s financial advisers as they first tech direct Presidents Club In the wake of the worldwide fi- help worried clients. 2008 nancial crisis, an increasing more than software “My sales force is working way number of business executives longer hours to constantly be re- and employees are feeling stress sponsive to clients’ phone calls,” Lo- that may be affecting their jobs Vasco said. “They are up to 60 hours and home lives, said Steven a week, up from 45 to 50 hours. That irst Tech Direct specializes in selecting, implementing, deploying Craig, a corpo- F is not a sustainable model.” and managing Microsoft Dynamics GP, Microsoft Dynamics SL, rate psycholo- Over the last four months, LoVas- Microsoft Dynamics CRM (Customer Relationship Management) Your Microsoft Dynamics gist with Craig ® co said, Alcos has asked its on-site and Microsoft Dynamics AX. First Tech Direct offers extensive Counseling Ser- Partner organizational psychologist to meet Microsoft Dynamics experience and proven methodologies that vices and Corpo- with financial advisers on a month- will increase your business’ efficiency, productivity rate Coaching ly basis instead of twice a year. and profitability. Hit the Jackpot with Services in ® GP! Birmingham. Some proactive companies are DŝĐƌŽƐŽŌLJŶĂŵŝĐƐ hiring corporate psychologists 'ŽďĞLJŽŶĚƚŚĞďĂƐŝĐĂĐĐŽƵŶƟŶŐǁŝƚŚ “Across the DŝĐƌŽƐŽŌLJŶĂŵŝĐƐ'WĮŶĂŶĐŝĂů board, business like Craig to come into the work- ŵĂŶĂŐĞŵĞŶƚƐŽŌǁĂƌĞ͘ executives are place to help employees deal with 2008 ͻWƌŽĮƚĂďŝůŝƚLJ ͻWĞƌƐŽŶĂůŝnjĞΘDŽĚŝĨLJ Craig ͻ/ŶĐƌĞĂƐĞWƌŽĚƵĐƟǀŝƚLJ ͻĞŶƚƌĂůŝnjĞ feeling a lot of stress or depression. ͻƵƐŝŶĞƐƐWŽƌƚĂů ͻdžƉĂŶĚ Top Killer VARS by stress,” said Craig. “I am called in One such company is Great Lakes Take advantage of this GAME WINNING Cancer Management Specialists, a Accounting Technology opportunity to learn more about by companies that want me to con- DŝĐƌŽƐŽŌLJŶĂŵŝĐƐ'W͊ duct assessments of their employ- 10-physician oncology and hema- Guest Speaker: ees and talk with them about tology practice with 120 employees ĂǀŝĚEĞŚƌĂ͕sWΘ/K stress and how they deal with in offices in DŽƚŽƌŝƚLJĂƐŝŶŽ,ŽƚĞů Grosse Pointe 2482910138 change.” Join Us - Cost: FREE! NOT ALL BAD EŽǀ͘ϭϯ͕ϮϬϬϴ Craig and several other psycholo- Woods, War-

CONTACT 2482910138 DŝĐƌŽƐŽŌZĞŐŝŽŶĂůKĸĐĞͮ^ŽƵƚŚĮĞůĚ͕D/ Some companies ren and Utica. ƉƉĞƟnjĞƌƐΘƌŝŶŬƐWƌŽǀŝĚĞĚ gists and psychiatrists contacted by Crain’s Detroit Business said they are doing well. “The prac- ΎDh^dZ'/^dZ&KZd,/^sEdd͗ Their executives? ǁǁǁ͘ĮƌƐƩĞĐŚĚŝƌĞĐƚ͘ĐŽŵͬtŝŶͺŝŐ͘Śƚŵ expect to see higher levels of people tice is being Well, not so squeezed by seeking mental health services if much. Page 37. 26622 Woodward Ave., Suite 105, Royal Oak, MI 48067 p: 248.291.0138 f: 248.281.0406 [email protected] the predicted economic recession both the fi- happens and as the Thanksgiving nancial crisis and Christmas holidays draw near. that affects their patients and de- In a recent survey of Detroit and clining reimbursement” from several other metropolitan areas, government and private payers, the American Psychological Associa- Craig said. “My job is to assess tion said stress levels in Detroit are the level of depression and stress more acute than other parts of the and the ability of the organiza- country. tion to change.” Worries about money and job Craig said employees and doc- stability are top stress factors that tors at Great Lakes are learning to have led to higher levels of drink- understand that they cannot con- ing, overeating, smoking and gam- trol external events. bling, the survey said. Bryan Hirn, area president for Here are some other disturbing Bingham Farms-based Gallagher/ trends. Rains, a health care employee bene- Ⅲ Troy-based T.E.A.M., an em- fit firm, said the company also has ployee-assistance company, report- taken steps to reduce stress within ed a 7 percent increase in usage for its 60-member staff. employee assistance programs in “We have a staff meeting every September 2008, compared with the month where we talk about sales same month last year. and what we are doing to protect In Detroit, there’s one “You don’t see that kind of in- people’s jobs,” Hirn said. way to face down risk... crease. Usually the month-to- “That reduces stress when peo- month numbers are pretty flat,” ple believe they are informed as said Kent Sharkey, T.E.A.M. what is going on.” A business insurance CEO. Ⅲ In September, mental health Uncertainty breeds anxiety expert you can trust. claims at Health Alliance Plan in De- troit rose 7 percent and inpatient Mark Winter, co-founder of Jim Merkel, Director of Sales days rose 5 percent over the same Bingham Farms-based Identity Mar- period in 2007. keting & Public Relations L.L.C., said “We’re seeing a higher level of he believes it’s an employer’s re- With a degree of integrity and understanding that’s unmatched, our Detroit domestic conflicts due to financial sponsibility to keep workers well- team will work to protect and advance your interests with the best possible obligations and medication over- informed about the economy and risk management and employee benefit plans available. doses triggered by bankruptcies,” their financial situations. said Susan Schwandt, HAP’s pub- So Winter called on his compa- We continue to build one of the nation’s strongest insurance agencies, lic-relations director. ny’s financial adviser, Jonathon Ⅲ At Warren-based St. John Citrin of The Citrin Group L.L.C., a never losing sight of the importance of local business knowledge. Learn Health, Andrew Konwiak, director Southfield-based boutique invest- more about Wausau Signature Agency by contacting Jim Merkel, of St. John Eastwood Clinics, said ment consultant firm, 800.782.0012 x620 or visiting www.WausauSA.com/Detroit. people may be delaying mental “We had all 18 of our people health services because they can’t brown-bagged in our conference Better Options. Easier Decisions. afford co-pays and deductibles. room, and Citrin gave us a 45- St. John employees have in- minute historical perspective on creased employee assistance pro- the ups and downs of the market, gram requests by 20 percent over why it’s different than in 2000,” the past six months, he said. Winter said. Jay Greene: (313) 446-0325, More work, more pressure [email protected] ©2008 Wausau Signature Agency. All rights reserved. Bob Ankeny: (313) 446-0404, John LoVasco, vice president of [email protected] 20081027-NEWS--0037-NAT-CCI-CD_-- 10/24/2008 2:14 PM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 37 Some companies doing well; their execs, not so much

BY TOM HENDERSON field-based Tele- ny formed in 2005 to buy distressed CRAIN’S DETROIT BUSINESS mus Capital companies and bring in manage- Wealth Advisors These days, I don’t open my statements ment to turn them around. The financial markets have L.L.C., said a few “ “We’ve been unbelievably busy. been so turbulent lately that even moments on Oct. at the end of the month. So we have a different view of the good times can be bad. 10 perfectly world,” he said. “We’re excited. Take Troy-based Crestmark Bank. summed up, for I throw them away. We’ve been talking about this trend These are boom times for the asset- him, the emo- ” for four years. It’s here and we’ve based lender, with potential cus- tions of follow- Walter “Bud” Aspatore, chairman, Amherst Partners L.L.C. got plenty of dry powder.” tomers cut off from bank lines of ing the market. Adding to his mood is that one of credit coming in, hat in hand. Wolberg He said that zooming along, he got a call that recounted Wolberg, who said the or- BlackEagle’s portfolio companies, “We’re seeing a huge influx of Friday was the put him at ease, a call from a 90- der cheered him up. “He’s a bell- Ft. Worth-based InStar Services new opportunities. Our pipeline of most turbulent day he had seen in year-old client. The client wasn’t wether for us. He bought after Black Group, does disaster restoration and possible deals is up 150 percent the market in his career — during calling in a state of panic, but with Monday in 1987, too.” reconstruction and was inundated over a year ago, one 10-minute phone call, the Dow a sense of enthusiasm. Garrett Kanehann is managing in work after Hurricane Ike. to about $120 went from down 350 to up 250. But “He said, ‘It’s time to buy.’ So we director of Bloomfield Hills-based Tom Henderson: (313) 446-0337, (million)-$130 as he watched the roller coaster bought him a few blue-chip stocks,” BlackEagle Partners L.L.C., a compa- [email protected] million,” said chairman and CEO David Tull. Typical, he said, was a call he got recently from someone in the auto supply Tull chain whose tra- ditional lender will no longer pro- vide short-term financing against General Motors Corp.’s receivables. Crestmark, he said, is happy to. Yet, as good as the company business is, his personal portfolio has been hit hard. “My wife and I tend to be having Others cut corners. We own them. that glass of wine with dinner a lot more frequently,” said Tull. “And there’s no question I’m using the At the intersection of sport and luxury sits the 2009 E 350 Sport Sedan. With a breathtaking clicker on the remote a lot more.” THE 2009 ® ® Looking for business news on 268-horsepower V-6, 12-speaker harman/kardon LOGIC7 digital surround-sound system with Dolby TV — or avoiding it? E-Class Digital 5.1 and standard Bluetooth® connectivity. One ride and it will leave you feeling anything but “Avoiding it. The nice thing is there’s always an episode of ‘Law wanting. Visit your local authorized Mercedes-Benz dealer for a test drive today. MBUSA.com & Order’ on some channel.” Walter “Bud” Aspatore, chair- man of Birmingham-based Amherst Partners L.L.C., an investment bank- ing firm that does turnaround con- sulting and restructuring and ad- vises on mergers and acquisitions, “Highest Ranked Midsize Premium Car has a similar tale to tell. in Initial Quality, Two Years in a Row “We’re seeing a number of firms (tied in 2008)” in Europe and Asia looking to buy businesses in the U.S., particularly the Midwest. They want to be here — and there are bargains to be had. We’re seeing more activity in the last six months than we’ve seen in years,” said Aspatore. But personally? “These days, I don’t open my statements at the end of the month. I throw them away,” he said. Michael Semanco is president of Huntington Woods-based Hen- nessey Capital L.L.C., another asset- based lender that has seen its busi- ness boom as companies seek funding sources to replace their traditional bank lines of credit. He said: “My wife told me, ‘Just don’t come home one more time and sigh in front of the computer.’ She sees me there, she knows what I’m doing,” referring to his recent habit of staring at the bad stock news online and calculating what that means for his portfolio. Brian Demkowicz, managing partner of Detroit-based private- equity firm Huron Capital Partners L.L.C., said one of his friends in the financial services sector has seen one silver lining in the turmoil. For a long time he’d been talk- Special Rates Available to Chrysler Employees ing about exercise but not doing Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester anything about it. Now? “He hooks up the iPod and goes 36600 North Woodward Ave. 39500 Grand River Ave. 595 South Rochester Rd. running for a half hour every morn- (248) 644-8400 (248) 426-9600 (248) 652-3800 ing to burn off stress,” said Demkowicz. Mercedes-Benz E-Class received the lowest number of problems per 100 vehicles among midsize premium cars in the proprietary J.D. Power and Associates 2007–2008 Initial Quality Study,SM tied in 2008. 2008 study based on responses from 81,530 new-vehicle owners, measuring 344 models and measures opinions after 90 days of ownership. Proprietary study results are based on experiences and perceptions of owners surveyed in February–April 2008. Your experiences may vary. Lyle Wolberg, president of South- Visit jdpower.com. 2009 E 350 Sport Sedan shown with optional equipment. ©2008 Authorized Mercedes-Benz Dealers For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com. 20081027-NEWS--0038-NAT-CCI-CD_-- 10/24/2008 11:13 AM Page 1

Page 38 CRAIN’S DETROIT BUSINESS October 27, 2008

Election 2008 Medical marijuana proposal divides health care groups

BY AMY LANE director of government affairs, conflicts for health care providers. was manufactured.” CAPITOL CORRESPONDENT said that when the group’s nurses One concern is that broadening AMENDMENT ON PHYSICIAN- The medical society does sup- looked at the issue and considered marijuana use sends a mixed mes- port further research to determine LANSING – In just over a week, their personal experiences with sage about smoking amid en- APPROVED USE OF MARIJUANA the efficacy of chemical com- Michigan could join 12 other states patients suffering from the effects trenched efforts in the health care The proposed amendment would: pounds found in the cannabis in allowing the use of marijuana of chronic diseases and the poten- community to warn of the health plant as it relates to various med- Ⅲ Permit physician-approved use for medical reasons. tial for marijuana to make a signif- risks of smoking tobacco. ical conditions and optimal dosage But the wisdom of that move is of marijuana by registered patients icant difference in giving patients “Any time you smoke, you just with medical conditions including and route of delivery, other than dividing some members of Michi- relief, “they felt very strongly that create more health problems,” cancer, glaucoma, HIV, AIDS, smoking. gan’s health care community. it should be an option.” said David Seaman, executive vice hepatitis C, multiple sclerosis and Byrum said that as long as the The Michigan Nurses Association But the Michigan State Medical president of the hospital associa- other conditions as may be federal government considers union is among the supporters of Society, the Michigan Health & Hospi- tion. “We’re very concerned about approved by the Michigan marijuana to be in a category of Proposal 1, citing the need for med- tal Association and the Michigan Os- the message it sends, as we’re ag- Department of Community Health. drugs that have a high potential ical marijuana to be available for teopathic Association have lined up gressively trying to rid the society Ⅲ Permit registered individuals to for abuse and that have no cur- seriously ill patients. against the ballot proposal and say of tobacco.” grow limited amounts of marijuana rently accepted medical use in Ken Fletcher, the association’s it poses several consequences and He said the proposal also calls — in an enclosed, locked facility treatment in the U.S. – points that into question hospitals’ ability to — for qualifying patients. she and other medical marijuana provide smoke-free Ⅲ Require the Department of advocates argue are unsupported environments and Community Health to establish an — marijuana will not go through identification card system for raises the issue of patients qualified to use marijuana the pharmaceutical chain. MARKET PLACE potential legal ac- and individuals qualified to grow She said marinol, which comes tion if hospitals marijuana. in the form of a pill and can help fail to accommo- relieve nausea and assist with loss ANNOUNCEMENTS & BUSINESS & Ⅲ Permit registered and date a patient on unregistered patients of appetite, is not an effective treat- SERVICES INVESTMENTS their premises who and primary caregivers ment for those chemotherapy pa- is using marijuana in to assert medical tients who vomit constantly and BUSINESS SERVICES BUSINESSES FOR SALE accordance with the reasons for using cannot keep the pill down. marijuana as a WE SELL BUSINESSES Earn over $150,000 per year. Established act’s medical treatment Proposal 1 opponents, which in- Confidential & Professional Service. Specialize in Payday Advance Turnkey Business For Sale. purposes. defense to any clude medical and law-enforce- Manufacturing, Distribution & Businesses-To- Earn 391% APR on money you advance. “Is this the equivalent of prosecution ment organizations and individu- Business Service Industries. [email protected] or call 517-927-8847 involving marijuana. Confidential Business Sale, Inc. medication, and if it is, do we als, say the proposal is poorly www.ConfidentialBusinessSale.com BUSINESS OPPORTUNITIES Detroit Metro Office 313-221-9378 actually have to allow the crafted and flawed. smoking of marijuana, even multiple sclerosis. “The problem that we really see CRISIS MANAGEMENT BANQUET / RESTAURANT FOR LEASE. Excellent The law would Corporate financing assitance, turnaround Downriver location and opportunity. Newly decorated though we believe that our with this is that it is sort of a sim- management and operational analysis services and fully equipped. Great lease terms! rights are to prohibit it?” Sea- create a registry of ple answer to a very complex prob- available for newly found companies ithrough $20 For more information call Larry at 734-676-5850 or patients and an iden- million in sales. www.genesisturnaround.com email: [email protected] man said. “We don’t know what lem,” said the hospital associa- or call 248-396-1208 our obligations are going to be in tification card system, tion’s Seaman. “It’s the through the Michigan De- EXTRAORDINARY terms of an individual being al- unintended consequences of this FILE STORAGE lowed to smoke in a facility partment of Community proposal that are the trouble.” COIN LAUNDRY SITE AVAILABLE Health, for patients qualified Large scale (MAXI) storage units. Great for RV’s, that’s identified itself as a smoke- Gov. Jennifer Granholm is per- Simply Outstanding Detroit Shopping Center to use marijuana and individuals boats, cars, warehousing. 14 x 14 door, heated, 24/7 Site for A Modern Recession Resistant Coin free environment.” sonally opposed to the proposal entry, secured. Buy/Lease - I-94 & 26 Mile Area Laundry. Nice Six Figure Annual Income qualified to grow marijuana. 800-945-5816/www.stclairstoragecondos.com Supporters of Proposal 1 say and the use of marijuana for med- Extremely Probable. We Will Provide Total such arguments are an attempt to A physician would provide writ- ical purposes, stemming from her Turn Key Laundry For You In About 90 Days. ten certification attesting to the FINANCIAL SERVICES Full Training Included. Easily Absentee Owned. throw a smokescreen over the ini- background as a Financing Available. Requires about $135,000 tiative. patient’s medical prosecutor, but she is CAPITAL TIGHT? Down. Dianne Byrum, spokeswoman condition and stat- not involved in the ~Since 1920~ ing that the pa- UNIVERSAL COIN LAUNDRY MACHINERY for the Michigan Coalition for Com- It is sort of a opposition group nor We will finance asset intensive businesses. www.universal-laundry.com passionate Care, said the law’s pro- tient is likely to re- “ is she campaigning Our rule of thumb is conservative LTVs. (248) 435-6200 hibition against public use of mar- ceive therapeutic simple answer to against the measure, We do not finance working capital. We or palliative bene- target investments in the range of $1 to ijuana would apply to doctor’s said her press secre- $10 million. We have an in-house legal offices and hospitals. fit from the use of a very complex tary, Liz Boyd. team, so our response time is quick. EQUIPMENT & marijuana to treat MERCHANDISE “It doesn’t impact smoke-free problem. Crain’s previously Please call us at policies,” Byrum said. “You can’t or alleviate the pa- reported on work- or call 248-560-0203 ext. 101 ” use it in a public place.” tient’s medical place implications or visit our website at OFFICE FURNITURE David Seaman, Michigan Byrum, partner at Byrum & Fisk condition or asso- that have been www.etccapital.com Health and Hospital Assoc. for more information. MUST SELL, OFFICE CLOSED Advocacy Communications in East ciated symptoms. raised, such as in- Desks $99, Chairs $39, Files $49, Partitions $50, A patient could Lateral Files $99, Cubicles, Office Phone Systems Lansing, said the potential of mari- creased employer liability and the Call (248) 548-6404 or (248) 474-3375. juana smoking in doctors’ offices possess up to 2.5 ounces of mari- inability to discipline employees juana or 12 plants. GOLF TELECOMMUNICATIONS or hospitals has been “a nonissue” who use marijuana in accordance in the 12 states that have medical Opponents argue that the with the law. EXTREMEGOLF4 LUCENT . . . AVAYA. . . PARTNER. . . marijuana laws. pipeline for marijuana provision is Proposal 1 backers say the law All of your golfing needs for less MAGIX. . . VOIP. . .LEGEND . . . neither as stringent or uniform as MERLIN. . .SPIRIT Systems/Parts New/refurbished. Smoking also is not the only clearly states that it does not re- New Golf Balls, All brands, with your custom Omnicall Equipment Corp. (248) 848-9282 method of ingesting marijuana, traditional drug prescribing, and quire an employer to accommo- logo/graphics imprinted. Additional items include: WE HAVE USED PHONES Byrum said. She said that while dosing is imprecise. new, logo over-run balls, bags, accessories & more. date the ingestion of marijuana in Nortel, Lucent, phone systems. Almost any new or The quality and strength of mari- Call Jeffrey Miller at (216) 538-5474 or used phone available. Expert installation available. some patients may see benefit the workplace or to accommodate email: [email protected] Call (248)548-6404 through smoking, others may get juana can vary, making it “confus- any employee who is working un- relief through eating marijuana, ing in terms of der the influence of the drug. Call Us For Personalized infusing it in hot water to make a physicians Overall, supporters of Proposal LEGAL SERVICES - IMMIGRATION Service: (313) 446-6068 tea, or through a vaporizer. telling a patient 1 say it will protect people with de- Fletcher, at the nurses’ associa- what to look for bilitating illnesses from the threat N. Peter Antone in terms of ade- AV-rated Immigration Attorney tion, called the issue of conflicting of arrest or jail for using marijua- CLOSING TIMES: Monday 3 p.m., quate relief,” Adjunct Professor Immigration Law at MSU messages on smoking, “a silly ar- na to alleviate aspects of their con- one week prior to publication date. said Gregory Antone, Casagrande & Adwers, P.C. Please call us for holiday closing times. gument. ditions. 31555 W. 14 Mile Road, Suite 100 “It’s not like we’re out there now Forzley, chair- Supporters include the Michi- Farmington Hills, MI 48334 FAX: (313) 446-1757 advocating smoking and holding man of the board gan citizens who gave nearly Phone (248) 406-4100, www.antone.com E-MAIL: [email protected] this up as something people should of directors of 475,000 valid signatures to place INTERNET: go out and do,” he said. “It’s just Forzley the medical soci- the measure on the ballot, the www.crainsdetroit.com/section/classifieds promoting this as an option to be ety and medical nurses association and other mem- TELECOMMUNICATIONS available for patients on their director of informatics at St. Mary’s bers of the medical profession, Confidential Reply Boxes Available WILL BUY own,” when other treatments have Health Care in Grand Rapids. Byrum said. ALL OFFICE TELEPHONE EQUIPMENT PAYMENT: All classified ads must be failed. He said the source of the drug is The Washington, D.C.-based Please Call: 877-RICHARD Please Call: 877-742-4273 prepaid. Checks, money order or The proposed law, which goes not controlled, whereas with an al- Marijuana Policy Project, a national Crain’s credit approval accepted. before voters Nov. 4, includes pro- ternative like marinol, a pharma- marijuana policy reform organiza- Credit cards accepted. VIDEOCONFERENCE SERVICES visions to permit physician-ap- ceutical product that contains the tion, has been a major financial See proved use of marijuana by regis- synthetic form of the most abun- backer of Michigan’s Proposal 1 Complete Videoconference Services tered patients with medical dant active ingredient in marijua- campaign. Job Interviews, Legal Depositions, Business Meetings Crainsdetroit.com/Section/Classifieds Convenient Troy Location, 3 Rooms, 1-200 Capacity conditions such as cancer, glauco- na, physicians “know the strength, Amy Lane: (517) 371-5355, Midwest Video 248-583-3632 www.midwestvideo.com for more classified advertisements ma, HIV, AIDS, hepatitis C and know the dosages, know where it [email protected] 20081027-NEWS--0039-NAT-CCI-CD_-- 10/24/2008 11:31 AM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 39

Election 2008 Sides line up for and against stem-cell research amendment

BY JAY GREENE could preclude state legislators from ap- the Citizens Research Council of Michigan in CRAIN’S DETROIT BUSINESS proving regulatory laws. AMENDMENT ON STEM-CELL RESEARCH Livonia, embryonic stem-cell research con- Ⅲ Research could create false hope in pa- ducted with federal funding is regulated by Will voters approve Proposal 2 to allow tients because there are no guarantees that PROPOSAL 08-2: A Proposal to Amend the the National Institutes of Health. expanded embryonic stem-cell research in embryonic stem cells can cure diseases. If State Constitution to Address Human Embryo However, federal regulations do not gov- and Human Embryonic Stem Cell Research in Michigan, or will they veto the proposed cures are found during the next decade or ern embryonic stem-cell research if state or Michigan amendment to the state constitution? two, medical treatment costs could be astro- private funds are used, CRC said. The proposed constitutional amendment The television and print ads have been nomical. Schwarz said presidential candidates would: run, the supporters and opponents have had Ⅲ Projections on job creation and eco- Barack Obama and John McCain have voted Ⅲ Expand use of human embryos for any their say. The newspapers and pundits have nomic benefits are grossly overstated. Most for a federal stem-cell bill that is very simi- weighed in. research permitted under federal law subject high-tech jobs would be filled by people com- to the following limits: lar to the proposed Michigan amendment. On Nov. 4, it will be time for voters to act. ing from outside of the state. However, McCain’s recent support for em- Here are the main general arguments for 1. The embryos are created for fertility Ⅲ Michigan already is a bioscience mav- treatment purposes. bryonic research has been unclear. and against approving the stem-cell amend- erick. The bill is co-sponsored by Rep. Mike Cas- ment by the opposition group Michigan Citi- 2. Are not suitable for implantations or are in excess of clinical needs. tle, R-Del., and Rep. Diana DeGette, D-Colo. zens Against Unrestricted Science and Experi- President Bush has twice vetoed similar bills. mentation and CureMichigan, which supports Science or religion? 3. Would be discarded unless used for research. Schwarz said the amendment specifically the amendment. states that stem-cell research in Michigan Dr. Joseph Schwarz, chair of CureMichi- 4. Were donated by the person seeking gan, said he supports the amendment be- fertility treatment. will fall under federal regulations, which, in effect, would be through the NIH. For Proposal 2 cause stem-cell research holds the promise Ⅲ Provide that stem cells cannot be taken of cures for disease. from human embryos more than 14 days after Moreover, the amendment also says that Ⅲ Medical research could be expanded to “It is the right thing to do,” said Schwarz, cell division begins. state and local laws could be crafted to regu- let researchers create new embryonic stem- a former Republican state and U.S. repre- Ⅲ Prohibit any person from selling or late research as long as they do not “pre- cell lines in Michigan. State law bans that sentative. purchasing human embryos for stem-cell vent, discourage, or create disincentives for practice. “Stem-cell and genetic therapies are the research. permissible stem-cell research.” Ⅲ Embryonic stem-cell research could future of medicine in the 21st century. I Ⅲ Prohibit state and local laws that prevent, George said that language only sets the lead to cures for such debilitating diseases don’t know how the people who oppose it restrict or discourage stem-cell research, stage for costly and lengthy court battles. as diabetes, sickle cell anemia, Parkinson’s can stand up in front of people with multiple future therapies and cures. “I am concerned about this amendment disease, Alzheimer’s, heart attack, stroke, sclerosis, spinal cord injuries … and say, Should this proposal be adopted? because no other industry or line of busi- breast and prostate cancer, and spinal cord ‘no, you can’t do stem-cell research,’ ” For a nonpartisan analysis of the proposal, ness or profession would enjoy this type of injuries. Schwarz said. see the Citizens Research Council site at protection,” George said. Ⅲ Jobs in the biotechnology industry www.crcmich.org. Current state law only allows research on On the other hand, Sen. Tom George, R- could be created and the state’s economy stem cells that are obtained outside the state Kalamazoo, co-chair of MI-CAUSE, said he stimulated. of banning stem-cell research. before 2001 and only with federal funding. is opposed to the amendment primarily be- Ⅲ Michigan could be one of nine states in “The opponents need to be honest that they Three states, including Michigan, South the nation that allows cutting-edge research cause it would prevent state legislators from are opposed for religious reasons. If a person Dakota and Louisiana, restrict stem-cell re- into stem cells, further enhancing the state’s passing laws to regulate stem-cell research. has a religious objection, they should vote search. Nine states have passed legislation reputation as a bioscience maverick. “This ties legislators’ hands. We might against it. I can understand that,” he said. specifically permitting embryonic stem-cell want to regulate stem-cell research like we George, who declined to say if he had a research. But only two other states, Mis- Against Proposal 2 do with tattoo parlors,” he said. religious objection, said there are no feder- souri and California, have constitutional If the amendment is approved, Schwarz al laws governing stem-cell research, only amendments to allow the research. Ⅲ A state constitutional amendment that said, state legislators have plenary powers federal funding restrictions. Jay Greene: (313) 446-0325, defers to federal rules on stem-cell research to enact any legislation with the exception But according to an October report by [email protected] CAREER MOVES

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Marketing Director CLOSING TIMES: Monday 3 p.m., one week prior to publication date. Fast growing, energy related company in Please call us for holiday closing times. southeast Michigan seeks qualified market- FAX: (313) 446-1757 ing director to oversee local, regional and E-MAIL: [email protected] INTERNET: national growth strategies including CRM, www.crainsdetroit.com/section/classifieds advertising, direct mail, online. Candidate Confidential Reply Boxes Available must be a self-starter, team player, with PAYMENT: All classified ads must be drive. Previous experience as high-ranking prepaid. Checks, money order or marketing executive a must. Excellent sal- Crain’s credit approval accepted. ary and benefits. Credit cards accepted. Email replies to See [email protected] Crainsdetroit.com/Section/Classifieds for more classified advertisements 20081027-NEWS--0040-NAT-CCI-CD_-- 10/24/2008 11:33 AM Page 1

Page 40 CRAIN’S DETROIT BUSINESS October 27, 2008

Election 2008 Foreclosures, a regional view hot issues in Oakland County race

BY CHAD HALCOM has been that the emperor doesn’t pansion talks, or mass transit for add more than 10,000 new jobs in CRAIN’S DETROIT BUSINESS really have any clothes on,” Southeast Michigan. the four years of its Emerging Sec- Lawrence said of Patterson. But Patterson countered that tors program as signs he is keep- Home foreclosures and compet- “We talk about jobs and econom- Southfield has the highest home ing Oakland solvent. ing views on economic develop- ic attraction, but 90 percent or foreclosure rate in the county, at 1 Lawrence said she would keep ment appear to have center stage Emerging Sectors but would “put a for Oakland County in next week’s more of our economy is based on in 24 homes, and Lawrence uses small business, and true leader- misleading figures in making her lower priority” on other Patterson election. initiatives such as Automation Alley, County Executive L. Brooks Pat- ship means working with Wall case against him. Street and Main Street. The cur- “It’s hard to have a real debate the Troy-based technology busi- terson faces an aggressive chal- ness association, in favor of a rent administration seems to take with someone who will just say lenge from Democratic Southfield “Jobs on Main Street” program Patterson Lawrence only one approach and talk to Wall anything, regardless of whether Mayor Brenda Lawrence, who ac- connecting entrepreneurs with fi- it’s true or has a factual basis,” he cuses her opponent of lacking re- The pair exchanged a few barbs Street.” nancing. gional cooperation, ignoring high on during a debate earlier this Lawrence also said the execu- said of Lawrence. Foreclosures will likely be an unemployment and overlooking month, and face off again Tuesday tive should take a more regional Patterson points to the county’s election issue as Oakland has an “quality of life issues” in its eco- evening at Walsh College in Troy. view than Patterson shows on the AAA bond rating and balanced all-time high of 17,000, or more nomic-development efforts. “The message in our campaign often-deadlocked Cobo Center ex- budgets and companies pledging to than 2 percent of all homes, in some stage of the process accord- ing to Treasurer Patrick Dohany. State Rep. Andy Meisner, D-Fer- REAL ESTATE ndale, is running against Dohany in part on the platform of creating a county land bank for mortgage- AUCTIONS COMMERCIAL PROPERTIES WATERFRONT PROPERTY foreclosed homes. STRIP MALL FOR SALE “A land bank is an incubator for 12,000 sq. ft, 33% Occupied. Located in real estate auction Fowlerville, MI. Serious inquiries only. sick property that local govern- Calll (248) 921-3368 or [email protected] ments, working with the private Nominal Opening Bid Starts at $250,000 AUCTION sector and community stakehold- OAKLAND TOWNSHIP INDUSTRIAL PROPERTY On 2 of the homes, 7 Waterfront ers, can use to prevent the harm 2950 Cranbrook bidding will start at that foreclosed properties are hav- Ridge Ct Properties Grand luxury AVAILABLE NOW ing on … property values and sta- estate with a private, gated $100,000 Northern bility of our neighborhoods,” entrance located 4,000 to 100,000 sq. ft. Meisner says on his Web site. in a small enclave Also 10,000 & 25,000 sq. ft. Michigan near Wyndgate But Dohany said creating a land Country Club. Free Standing Bldgs w/truckwells. r
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3JWFS Open house: 1-4pm Sun Oct 26th, Nov 2nd and 2 Land Available Chad Halcom: (313) 446-6796, hours before sale. Sells: 3:45pm, Tue., Nov. 4th www.reaconstruction.net 4 LOTS SELLING ABSOLUTE REGARDLESS OF PRICE [email protected] williamsauction.com 800.801.8003 MANY PROPERTIES AVAILABLE redfieldgroup.com FOR ONLINE BIDDING! 866-673-9270
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Crain’s Classifieds Gets Results In Conjunction with Century 21, Looking Glass #6505347674 5% Buyer’s Premium May Apply Oakland County BANK ORDERED AUCTION INDUSTRIAL PROPERTY OFFICE SPACE Ask About Our TWO DAY EVENT! board may tip to SPACE Over 30 Foreclosed Properties Throughout Now Leasing: 83,700 sq. ft. OT DEALS! Michigan Ɣ Including Detroit, Howell, OFFICE Where Quality Tenants Find Exceptional Value Southfield, Fenton & Genoa Democrats Commercial & Residential Property Spread Catellus Group, LLC 810-695-7700 WE’VE G PROGRAM Officials suspect four-term Oak- Throughout the State INVESTMENT PROPERTY (248) 477-5000 land County Executive L. Brooks NOV. 18, 2008, DETROIT, MI Patterson will likely survive his LYON TOWNSHIP/BANK OWNED re-election challenge by an under- 12-unit rental townhouse project available. Jonathan Brateman NOV. 19, 2008, LANSING, MI Get a great deal on this investment opportunity. Properties funded Democratic opponent — Contact Karen Shepherd at 248-290-5300 ext. 311 but his scant Republican majority bratemanproperties.com on the county Board of Commis- BID ONLINE NOW OFFICE SPACE sioners may not. Detroit Mid-Town Commercial Loft/Office Space WATERFRONT PROPERTY Patterson, challenger Southfield The Redfield Group available at the Historic Clay School (Non- Mayor Brenda Lawrence, and Residential). Space available from 400 – 8,000 sq ft. LARGE 1 ACRE LAKEFRONT LOTS - 15 min from Redfield Group.com (866) 673-9270 starting at $500/mo. All util. incl. Free Secured Novi/Ann Arbor on all sports lake in Brighton. ALSO, county Treasurer Patrick Dohany Parking. (313) 831.1870. 4100 sf new Lakefront home ready for move-in 90 all said the county stands a good Call 810-220-8060 days. Discounts Available. chance of losing its longtime GOP ON ORCHARD LAKE DOWNTOWN NORTHVILLE 4 bedroom ranch, 3 1/2 baths on majority on its Board of Commis- Historic Edison Building 1.4 acres premium lot. 248-335-0104 sioners Nov. 4. In Patterson’s first www.5081commerce.com term in 1992, his party had 19 com- mission seats to the Democrats’ Call Us For Personalized six. Since 2006 it has been 13-12. Service: (313) 446-6068 “That’s why (John) McCain pulled a real boneheaded move by CLOSING TIMES: Monday 3 p.m., one week prior to publication date. getting out his campaign of Michi- Please call us for holiday closing times. gan a few weeks ago,” Patterson OFFICE / RETAIL FAX: (313) 446-1757 said. For Lease Approx. 1,000-3,000 Sq. Ft. E-MAIL: [email protected] Lawrence said the county has Ground Floor / Move In-Ready / INTERNET: shifted in recent years from a GOP On-Site Parking www.crainsdetroit.com/section/classifieds bastion to more of an independent Call: 248-347-1572 Confidential Reply Boxes Available bellwether county, open to change. PAYMENT: All classified ads must be “Oakland County has elected a CRAIN’S CLASSIFIEDS prepaid. Checks, money order or Democrat for president in the last WORK! Crain’s credit approval accepted. two elections, and after the Bush Credit cards accepted. To Place Your Ad Call administration a lot of its indepen- (313) 446-6068 See dent voters are willing to accept or Crainsdetroit.com/Section/Classifieds Fax (313) 446-1757 change,” she said. for more classified advertisements — Chad Halcom 20081027-NEWS--0041-NAT-CCI-CD_-- 10/24/2008 5:22 PM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 41 Election: Business wants fundamental change from whoever wins ■ From Page 1 ties. And so whoever gets elected Ninth Congressional District race hopes to unseat veteran U.S. Sen. contenders are retired Ford Motor mer chief of staff to state Sen. Irma in any of these seats needs to really has veteran U.S. Rep. Joe Knollen- Carl Levin, D-Detroit. Co. executive John LaFond and Su- Clark-Coleman, are Democratic come to grips with that.” berg, R-Bloomfield Hills, facing a ■ The Macomb County Commis- san Brown, owner of Susan Brown contenders; while Republican con- Bill Ballenger, editor of the In- challenge from former Michigan Bu- sion and the Macomb County Charter Interiors. tenders are Danialle Karmanos, side Michigan Politics newsletter, reau of State Lottery Commissioner Commission both have general elec- At MSU, incumbent Scott Rom- founder and executive director of said eliminating the nearly 22 per- and former state Sen. Gary Peters, tions for all 26 commissioner dis- ney and Kentshire Classic Homes Danialle Karmanos’ Work It Out, and cent surcharge on the MBT is a Bloomfield Township Democrat. tricts. President Lisa Bouchard are Re- Torion Bridges, an MSU student in “foremost on a lot of people’s Additional closely watched Oak- ■ Board seats at the University of publican contenders, while Demo- urban and regional planning and minds,” and business is looking land County races include county Michigan, Wayne State University and cratic contenders are Dianne head of Bridges Holdings. for action, regardless of Nov. 4 out- executive, where Republican in- Michigan State University. Two seats Byrum, a former state representa- Ⅲ Also at issue are Proposal 1, comes. cumbent L. Brooks Patterson is on each of the governing boards tive and partner at Byrum & Fisk Ad- which would permit the use of But even as lawmakers wrestle challenged by Southfield’s Democ- are up for election. vocacy Communications, and Diann medical marijuana (See related sto- with the budget, they need to look ratic Mayor Brenda Lawrence, At UM, incumbent Laurence Woodard, president of the Organiza- ry, Page 38), and Proposal 2, which at how Michigan can fundamental- and the County Commission (See Deitch and Clark Hill P.L.C. attorney tion of School Administrators and Su- would legalize stem cell research ly change, through steps like be- related stories, Page 40.) and Ambassador magazine Pub- pervisors. (See related story, Page 39). ■ coming more helpful to business, The U.S. Senate, where state lisher Denise Ilitch are Democrat- At Wayne State, incumbent Paul Amy Lane: (517) 371-5355, building up cities and investing in Rep. Jack Hoogendyk, R-Portage, ic contenders, while Republican Massaron and Gary Pollard, for- [email protected] infrastructure, said Bill Rustem, presi- dent and CEO of nonpartisan think tank Pub- Detroit October 2008 lic Sector Consul- Pittsburgh tants Inc. It’s both an opportunity and Rustem a challenge, coming out of the elections. “We’ve got to do that — focus on how we create prosperity in this state,” Rustem said. Races of interest include: ■ The state House. Democrats hold a 58-52 majority in the cham- ber and are expected to pick up anywhere from seven to 12 seats. “It could be as much as a 70-40 House,” Ballenger said. “I think what it really depends on more than anything now is (Barack) Obama’s win at the top of the tick- et, how big is it.” ■ Re-election or recall of House Speaker Andy Dillon, D-Redford Township. Dillon, the subject of a recall over his role in 2007 tax in- creases to balance the state budget, could potentially both lose and win his job at the same time, although most political watchers do not think the recall will succeed. More Flexibility = More Certainty ■ Michigan Supreme Court. In- cumbent Chief Justice Cliff Tay- lor, nominated by Republicans for In these turbulent economic times, with financing more difficult to arrange, Huron Capital continues the only seat on the court up for to provide more for you or your clients. How? election this year, faces a chal- lenge by Wayne County Circuit Judge > Fresh Capital – Having raised $350 million earlier this year for our third Fund, Diane Hathaway, nominated by we are aggressively seeking new opportunities. Democrats. ■ Oakland County. The fierce > Flexible Capital Structures – Huron can provide all junior capital below senior financing in order to ensure certainty of closing. > Proven Ability to Close – Huron has completed 7 transactions year-to-date despite market conditions. Metro Healthcare Services announces grants to 8 groups Flexibility is our focus. We can provide all of the junior capital required to complete our investments, or even bridge the entire capital structure to get a deal done. We increase the certainty of closing, Detroit-based Metro Healthcare an important consideration in current market conditions. As a result, we are just as active now as Services Inc. has announced grants to Detroit-area nonprofit organiza- we have been over the past several years and are eager to deploy more capital, and more frequently. tions to fund work with youths, Be Certain About Huron. the disabled, seniors, for mental illness, homelessness and general public health. Recipients include Henry Ford Health Systems Institute on Multicul- tural Health, St. Patrick Senior Center HURON CAPITAL PARTNERS LLC and Southwest Consulting Solutions, PLATFORM INVESTMENT CRITERIA TRANSACTION TYPES $5,000 each; Detroit Community Health Connection Inc., Healthy Teens Revenues $20 million to $200 million Buyouts Buy & Build Community Care Program, Gateway to EBITDA $3 million to $20 million Recapitalizations Growth Initiatives Recovery Inc. and the Dr. Albert B. Equity per Deal $10 million to $70 million Family Successions Corporate Spin-offs Cleage Sr. Memorial Health Center, $15,000 each; and an amount to be www.huroncapital.com determined for the American Asso- 500 Griswold, Suite 2700 I Detroit, Michigan 48226 I Tel: 313.962.5800 ciation of Middle Eastern Women. 225 Ross Street, 4th Floor I Pittsburgh, Pennsylvania 15219 I Tel: 412.201.7040 — Bob Ankeny 20081027-NEWS--0042-NAT-CCI-CD_-- 10/24/2008 5:05 PM Page 1

Page 42 CRAIN’S DETROIT BUSINESS October 27, 2008 Wal-Mart: Makes inroads ■ From Page 1

affairs for Wal-Mart. Progressive Grocer lists 14 Wal-Mart grocery GROCERY LEADERS centers in the metro area. The Cincinnati-based Kroger Co., Here are the top five grocery chains in the Detroit-area market, the metro area’s leading grocer according to Progressive Grocer with a 27.9 percent market share, magazine, a trade publication that has 104 stores. covers the grocery industry: Meijer Inc. has the second-largest market share, with 26.1 percent October 2008 and 37 stores, according to Pro- Kroger 27.9% gressive Grocer. Ann Arbor-based Meijer 26.1% Busch’s Inc. is top among locally Wal-Mart 11.8% owned grocers, with 2.6 percent of Busch’s 2.6% the market. Southfield-based Hiller’s 1.6% Hiller’s Markets controlled 1.6 per- cent of the market. July 2007 Wal-Mart entered the Michigan Meijer 26.0% grocery market in the 1990s but Kroger 23.2% hadn’t made inroads in the five- Farmer Jack 23.2% county metro area until recently. Wal-Mart 2.6% The region includes Wayne, Oak- Busch’s 2.5% land, Macomb, Washtenaw and Livingston counties. “We’ve made a significant in- this year, five of which were re- vestment into Michigan,” Infante placements for older stores, said said. “It’s a good market for us, and Frank Guglielmi, director of pub- a good opportunity to grow. We lic relations for Meijer, based in never really had a grocery compo- suburban Grand Rapids. nent in metro Detroit, where we The chain’s Detroit-area sales never had as many stores, but volume is $2 billion, according to we’re getting more and more stores Progressive Grocer. in the five-county area.” Meijer is opening just one store Wal-Mart no longer opens retail- in Southeast Michigan next year, only stores, he said. All new stores he said, in Hartland Township. offer groceries, and the chain is ex- Guglielmi declined to comment panding its existing stores to ac- on his store’s position in relation commodate groceries. to Wal-Mart’s growth or strategies. The Great A&P Tea Co.’s decision “We’ll just continue to focus on to close its 66 Michigan Farmer Jack what our customers need,” he said. stores — which controlled 15.9 per- “That’s really what our play is.” cent of the market last year — Busch’s is preparing to open a meant a chance for other grocers new store in West Bloomfield Town- to increase market share, said Neil ship, said John Busch, company Stern, a senior partner with Chica- president, but hasn’t made firm go-based retail consulting firm plans to open any other stores. The McMillan Doolittle. company’s sales volume was $201 “Wal-Mart’s been gaining share million, according to Progressive steadily for a long period of time,” Grocer. he said. “You’ve got this big vacu- Busch’s also acquired two um in this market with Farmer Farmer Jack sites, he said. Jack going away, and it looks like “They were balanced and blend- Wal-Mart might have picked up a ed with the geographic territory disproportionate section of it.” we’re operating in,” he said. Busch Stern notes that market share is said he tries to keep prices compa- ranked by all-commodity volume. It rable to Kroger, but said he doesn’t measures food and nonfood items, see Meijer or Wal-Mart as direct like detergents and paper goods, competition for his 12 stores. categories in which big box retail- “Wal-Mart or Meijer is a differ- ers like Wal-Mart and Meijer tend ent experience,” he said. to outperform traditional grocers. European-based deep discount “Those bigger stores are doing grocery retailer Aldi U.S. hasn’t more (business) per store,” he made it into the metro area’s Top said. 10, but it has opened five new Wal-Mart reported $101 billion stores in the area in the past year, in revenue for the quarter ended said Martha Swaney of Aldi’s me- July 31. Progressive Grocer reports dia-relations department. the retailer’s Detroit-area all-com- Detroit has a strong history of modity volume as $911 million. competitive grocery offerings, said “Kroger on a national basis has Ken Nisch, chairman of South- actually been doing quite well; the field-based retail consultancy JGA biggest thing Kroger has done is Inc., for discount, midmarket and lower prices (to become) much upscale grocers. more competitive. They’re much “It’s competitive across all seg- more scientific on how they’re ments,” he said. “Because we have looking at prices; and along with a well-developed group of entre- marketing programs, this has en- preneurs on the high end, and be- abled them to narrow the gap on cause historically there were gro- key items.” cery chains based here, it’s always Dale Hollandsworth, manager of been a very competitive market.” integrated communications for Kroger bought 15 former Kroger’s Great Lakes region, did Farmer Jack locations, according not return calls seeking comment. to previous reports in Crain’s. Kroger (NYSE: KR) reported $18 “Kroger is trying to be the mus- billion in revenue for the second cle in the middle,” Nisch said. quarter ended Aug. 16, according “They’ve got more value focused to Securities and Exchange Commis- in certain demographics. I think sion filings, and has all-commodity there’s a lot of volume in that spot, volume sales in the metro area of but the danger is if you’re not top $2.1 billion, according to Progres- of mind.” sive Grocer. Nancy Kaffer: (313) 446-0412, Meijer opened nine new stores [email protected]. 20081027-NEWS--0043-NAT-CCI-CD_-- 10/24/2008 6:46 PM Page 1

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 43 GM-Chrysler merger could National City: Deal called ‘exciting’ ■ From Page 3 weak institution that couldn’t do a lot of lending be- “You look at the Michigan banking scene, and devastate area suppliers cause of a lack of capital and turned it into a strong much of it is controlled by Texas, Ohio and New institution that will be able to lend,” said Curell. York. Now, we’ve traded Ohio for Pennsylvania,” he “But the most exciting thing is that someone went said. “It was a bit of a surprise that the deal was put BY RYAN BEENE process, it’s lousy, Gillette said. out and leveraged the U.S. Treasury’s troubled-assets together that quickly.” CRAIN’S DETROIT BUSINESS But those who make it could be plan. It’s nice to see someone take the opportunity to National City would have been left out of a gov- in a position to thrive. take the Treasury’s money and help a weakened in- ernment bailout plan, so selling itself was viewed as The rumor of a potential merger “In the end, it will be good for of General Motors Corp. and Chrysler stitution,” he said. the best option in an increasingly tumultuous finan- the remaining suppliers, and I “That was (Treasury Secretary) Henry Paulsen’s cial market. L.L.C. leaves in its wake a fog of un- think that among the GM and certainty as to what will become of intention. If you’re going to have this program out “The board of directors determined that the value Chrysler suppliers that the there, this is the way it should operate.” of the franchise could actually erode with the ongo- the largest and third-largest De- stronger ones financially, cost- troit automakers. Critical to the acquisition was approval by the ing market volatility,” National City spokeswoman wise and delivering quality perfor- Treasury for PNC to issue it $7.7 billion in preferred Kristen Baird Adams said Friday. But if GM and Chrysler were to mance, will be the winners,” merge, the combined vehicle line- stock and warrants as part of the recent bailout Earlier in the week, National City Chairman and Fitzgerald said. package. That stock issue will strengthen PNC’s cap- CEO Peter Raskind announced the bank planned to ups of the two companies would eat Local suppliers have withheld into the sales of the new company, ital position and allow the combined entity to have a cut 4,000 of its 30,000 nationwide employees, for a comment, saying they don’t know capital ratio of 10 percent. savings of $500 million to $600 million, by 2011. likely leading to cutting vehicle plat- what the impact on their business forms, or possibly entire brands. “The thing to focus on is: What does this say about But in a Friday conference call, PNC Chairman will be because they don’t know the policy and tools put in place by the federal gov- and CEO James E. Rohr said he expects to cut $1.2 “What is at risk is there is going what’s happening in the board- to be platform and vehicle consoli- ernment? They are already creating stability in the billion through the elimination of “operational and rooms of GM and Cerberus Capital market,” said William Koehler, president of the Ann administrative redundancies” dation; they’re simply going to Management L.P., Chrysler’s pri- eliminate some vehicles in this Arbor-based Michigan operations for Cleveland- over two years. vate-equity owner. based KeyBank. Gerard Cassidy, an analyst for process — that will be lost busi- “We don’t know what’s real and ness to the entire supply chain,” National City has the second highest number of RBC Capital Markets in Portland, what’s not in terms of discussions, branches in the state, with 272 as of June 30, accord- Maine, said he expects between 60 said Craig Fitzgerald, partner and and because of that, we don’t know auto analyst at Southfield-based ing to the Federal Deposit Insurance Corp., behind percent and 70 percent of those what the potential impact may be, Chase’s 297. Its total deposits of $11.9 million ranked cost savings to come from cuts in Plante & Moran P.L.L.C. positive or otherwise,” Thomas Dave Andrea, vice president of it No. 5 in deposit market share of 7.6 percent. Bank the National City workforce. Saeli, CEO of of America was No. 1 with $24.9 billion and market “You don’t need two personnel industry analysis and economics Troy-based Noble for the Original Equipment Suppliers share of 15.8 percent. departments, two legal depart- International Inc. In a teleconference Friday, PNC officials said the ments, etc., etc.,” he said. Association, says gauging the im- “For Noble, our Raskind pact of a Chrysler-GM merger is combined entity will save about $1.2 billion by com- Bart Narter, senior vice presi- focus is running bining operational and administrative functions. It dent of the banking group at Boston financial re- next to impossible without a long- our business and term product-cycle plan developed made no mention of branch closings or staff cut- search and consulting firm Celent, said National operating as effi- backs in those areas. City’s technology strength might mean the bank for a combined company. ciently as we can The vast majority of the $40 bil- Currently PNC has no branches in Michigan. maintains more of its technology-related jobs. in these lower- “It’s way too early to speculate on that, but we In a call with investors Friday, Rohr said it was lion purchasing budget is spent volume markets. with suppliers in North America, don’t have any overlap,” said Boyle. “We have 270 National City’s deposit strength and its loyal cus- Saeli Right now, it all Crain’s sister publication Automo- banks in the state. PNC doesn’t have any. Customers tomer base that enticed PNC to make the deal. PNC just seems specu- need to understand they’ll still be working with the had been in talks off-and-on for a number of months, tive News reported in March. lative.” And if the companies were to same people. They’ll still have the same accounts. the bank’s leaders said, but began them again in But on the whole, a GM-Chrysler Nothing is going to change for them.” earnest Oct. 5. merge, a sizable chunk of merger would be another hit to the Chrysler’s $40 billion purchasing “Anytime you can stabilize a large bank in the Tom Henderson: (313) 446-0337, supplier sector, which has lost near- marketplace, it’s a good thing,” said Michael Ross, [email protected] budget is likely to get the ax as ve- ly 42,000 jobs in Oakland, Macomb, hicle lines are consolidated. president and CEO of both Dearborn Bancorp Inc. Arielle Kass is a reporter for Crain’s Cleveland Washtenaw and Wayne counties (Nasdaq: DEAR) and its Fidelity Bank. Business. The impact on the metro area alone from 2001 to 2007, according to could be huge. the U.S. Department of Labor, Bureau A total of 493 auto parts manu- of Labor Statistics facturers in Oakland, Macomb, “Any way you look at this, the Wayne and Washtenaw counties suppliers in general are not going to employed more than 70,000 people be happy,” Gillette said “They’re go- with average annual pay ranging ing to be under increasing pressure from $70,000 to $109,000 in 2007, ac- to cut costs, and, yes, a few will get cording to the U.S. Bureau of Labor additional volume out of it, but the Statistics. additional volume will be offset by Jim Gillette, director of supplier the cost pressures.” CREATIVE. CONNECTED. CONSULTATIVE analysis at CSM Worldwide Inc., Chrysler has seen more than its says there is a 90 percent chance fair share of job losses, too. SERVICE that 20 percent of domestic suppli- The Auburn Hills-based au- ers will no longer exist by 2012. tomaker announced Friday it Fitzgerald says his firm expects plans to reduce its salaried work- half of today’s suppliers to be gone force by 25 percent, or more than by 2013, and he expects a GM- 4,300 people, in the next month. Chrysler merger would pull ahead According to Michael Palese, much of that consolidation. Chrysler corporate communica- Kimberly Rodriguez, principal tions spokesman, the company at Grant Thornton L.L.P., has said a had 17,332 salaried and 46,148 glob- third of the supply base is at risk of al employees as of Sept. 30. failure. If the local supply base was re- Chrysler employed 9,053 in Oak- duced by 20 percent, as projected land County and 9,893 in Macomb by Gillette, up to $6.1 billion in in- County as of January 2008, accord- come could be taken out of local ing to Crain’s data. Cambridge Consulting Group brings together the right mix of employee benefits, economies. Richard Notte, mayor of Ster- human resources and wealth strategies to help our clients succeed. Our unique “I’m much more concerned ling Heights, is apprehensive about what a GM-Chrysler merger expertise and sophisticated service offerings enable us to develop custom solutions about the $75 million to $125 mil- that address business and personal objectives. lion firm that’s family-owned, that could mean for his community. 40 to 50 percent of their business is Chrysler’s two plants generate still with Chrysler,” Gillette said. about $3 million, or 5 percent, of the Cambridge Consulting Group...Committed to Michigan...Committed to Its Clients “They’re either going to have to be city’s property tax revenue and a to- sold, closed, or some miracle is go- tal of $13 million in tax revenue for ing to happen, because they’re go- Oakland County, he said, and he ing to be out of business here with- doesn’t want to put that in jeopardy. in a two-year period of time.” “I think the whole area getting From the perspective of an econ- from three to two major auto com- omist, an accelerated supply-base panies, it takes a lot of ‘oomph’ out contraction would be a good thing of this area, the Detroit metropoli- for the industry. It would cut ex- tan area, which has always been cess capacity and costs in the long the auto giant of the world.” T: 248.743.4300 | www.cambridge-cg.com run. But for workers at these com- Ryan Beene: (313) 446-0315, panies who lose their jobs in the [email protected] 20081027-NEWS--0044,0045-NAT-CCI-CD_-- 10/24/2008 5:21 PM Page 1

Page 44 CRAIN’S DETROIT BUSINESS October 27, 2008 GM-Chrysler merger creates uncertainty at ad agencies

BY BILL SHEA to some degree to figure out what about anything could happen. carmaker’s largest global ad CRAIN’S DETROIT BUSINESS AUTO AD BUDGETS FALL it means. It’s a whirlwind kind of “In a volatile time like this, agency, handling Chevy and Cadil- thing.” everything is up in the air. History lac in 60 countries that include lu- The watercooler talk at metro At stake in a General Motors Corp.- is a positive factor, but how impor- crative emerging markets such as Chrysler L.L.C. combination, or any Detroit advertising agencies that tant is it? We’ll see,” Cole said. China, India and Latin America. other significant change in the work on General Motors Corp. and BBDO “Who knows who is going to get “Our global footprint would be Chrysler L.L.C. accounts has been domestic auto industry, is a whole lot of money for advertising BBDO has about 650 employees thrown overboard?” valuable,” said Garry Neel, presi- the merger discussions between agencies. in metro Detroit, mostly at its Troy dent and CEO of McCann World- the automakers. GM spent $2.1 billion on office, and almost all of them work Leo Burnett Detroit group Detroit and Los Angeles. The agencies, slammed by staff advertising in 2007, down 7.7 on the Chrysler and Dodge ac- It also handles GM’s corporate reductions as the auto industry percent from 2006, according to counts. Other BBDO staff in New The Troy office of Chicago-based work and retail advertising, such eviscerated advertising budgets, New York-based TNS Media York City also work on the car- Leo Burnett Worldwide has seen as employee discounts, along with are saying very little as the news Intelligence. Only Procter & Gamble maker’s advertising. more transition in the past two Sirius XM satel- about Auburn Hills-based Co. ($3.4 billion), AT&T Inc. ($2.2 Jeep is handled by BBDO sister years than most agencies. lite radio, Saab Chrysler’s fate changes by the billion) and Verizon agency Cutwater in San Francisco, In 2006, it lost the $225 million and Opal. Communications Inc. ($2.1 billion) hour. and related agencies PhD Detroit national Cadillac account to “Something spent more last year. Those familiar with the agen- and Organic in Detroit work on Boston-based Modernista and whit- like a merger is If GM’s spending from the first half cies and the auto companies be- Chrysler’s media and digital ac- tled down nearly 80 staff positions, so far out of our of this year continues at the same lieve GM’s ad houses are on more counts. but it got the $122 million Buick ac- realm of control, solid ground if a merger and subse- rate, the company will spend about $1 billion on advertising. Roy Elvove, director of corpo- count and the $261 million GMC and we have so quent brand consolidation occurs, rate communication for New York- account to add to its Pontiac work. many other especially because GM has a Chrysler spent $1.2 billion on advertising in 2007, according to based BBDO North America, said the The office has more than 200 things to focus strong global sales network while company won’t comment on merg- staffers working on its various GM on,” Neel said. TNS, and is on pace to spend Neel Chrysler’s sales are 95 percent do- $811 million this year. er talks. accounts. It also has the GM Ser- “I, like the aver- mestic. The slackening ad spending is BBDO cut about 75 employees in vice and Parts Operations division age consumer, read the stories in Locally, Chrysler employs the reflective of the overall domestic Detroit earlier this year, and an and GM Goodwrench accounts in the press with interest and con- Troy office of New York City auto industry, which reduced undetermined number were let go Detroit. cern, and any solution that makes agency BBDO for its Chrysler and spending last year by 7.1 percent from PhD Detroit and Organic. Calls to the office were referred GM stronger is going to be good for Dodge advertising. to $7 billion, TNS estimated. Two years ago, BBDO Detroit had to the Chicago office, which did us.” General Motors, which has far Detroit has suffered in particular an estimated 1,100 staffers. About not return two messages. Even with the long-term rela- more nameplates in its lineup, has as carmakers trim ad budgets: 220 were let go in early 2006 after a tionship, Neel doesn’t know if Mc- long relationships with Warren- GM, Chrysler and Ford Motor Co. round of Chrysler cost-cutting. Cann will be asked to defend its ac- moved an estimated $880 million based Campbell-Ewald, Leo Burnett Auto insiders think BBDO likely McCann counts. in measured media spending on Detroit in Troy and the Detroit of- will retain work if a GM-Chrysler The Birmingham office of Mc- “They have a pretty good sense fice of McCann Worldgroup. brands out of Detroit from summer 2006 to summer 2007, according marriage occurs, but it’s the most Cann Worldgroup, which handles of us and what we can do. But I Both car companies, which em- to Advertising Age. at-risk of the agencies in town. GM, has weathered a couple of wouldn’t rule it out,” he said. ploy a galaxy of other agencies Some of that work returned, “Depending on the combination, blows: It lost the Buick account elsewhere to handle specific work, however, such as when GM moved Chrysler and Dodge are probably two years ago to Leo Burnett after spent a combined $3 billion-plus its corporate work from McCann to vulnerable,” said David Cole, having had it since 1958, and GM Campbell-Ewald last year on advertising. “I’m sure a Los Angeles agency before chairman of the Ann Arbor-based corporate work to an L.A. agency, Perhaps the agency in the agencies like BBDO and a lot of the bringing it back. Center for Automotive Research. but got it back this year. strongest position after any Gener- digital companies that work for — Bill Shea But because the auto industry is The shake-ups have the office al Motors move is Campbell- Chrysler are trying to figure out so unpredictable at the moment, down to about 200 employees. Ewald, which has handled Chevro- themselves how it will play out,” Ferndale ad house that bears his especially with foreign automak- Despite the recent transition, let since 1919. said Gary Topolewski, a big- name and does some work for GM. ers looking to establish or firm up McCann appears to be on relative- agency veteran who now owns a “Everyone is kind of scrambling footholds in the U.S. market, just ly solid ground with GM. It’s the See Agencies, Page 45

Merger: Detroit and Auburn Hills fear real estate vacuum ■ From Page 1 the area,” said Levi Smith, a principal in the Southfield of- to take the former Chrysler factory at 9600 Mt. Elliott St. in GM and GMAC were to move to Auburn Hills. GM leases 1.5 fice of GVA Detroit. “There are a lot of older buildings without Detroit to use as a staging area for its floats. million square feet in the Renaissance Center, with GMAC suitable power services, and without the ceiling heights and “The owners were able to buy right and make it very at- leasing another 226,000 square feet, according real estate truck docks to suit most of the users out there.” tractive for lease rates,” he said. “So the Parade Company sources. And there is a lot of real estate out there. got a great deal.” Impacting Detroit the most, however, would be the loss of General Motors Corp. owns and leases 84 million square The more realistic scenario is that opportunistic buyers what GM has brought to the city since it moved downtown feet of industrial space in Southeast Michigan and 10 mil- would purchase old facilities at a deep discount, Smith said. in 1996, said Paul Beitz, a first vice president in the South- lion square feet of office space, said Dan Flores, GM manag- They would then be able to offer discounted lease rates to field office of CB Richard Ellis. er of corporate news relations. tenants to move in, undercutting the existing landlords and “I hope GM continues to be part of Detroit,” he said dur- Chrysler controls 21.6 million square feet of industrial moving vacancy around. ing the Engineering Society of Detroit’s economic outlook fo- space and 4.8 million square feet of office space, 4.4 million “You just have more musical chairs,” he said. rum last week. “Without GM and what they have done for of which is the headquarters, according to data from CoStar, In some cases, a large plant can be broken up and used by the city, you wouldn’t have the growth in retail and restau- Chicago-based Grubb & Ellis and Crain’s research. smaller users, said Geoff Hill, a senior vice president in the rants, with small entrepreneurs taking bets there and show- While the office markets could face distress, brokers are Southfield office of Grubb & Ellis. He worked on the redevel- ing faith in the city.” most worried about the industrial market. opment of a 1.2-million-square-foot tank plant in Warren, In Auburn Hills, it would be possible — but difficult — to Industrial corridors in Sterling Heights, Warren and De- which was subdivided and leased to two companies. move other tenants into the Chrysler headquarters build- troit stand to go vacant with no hope of finding new tenants. “But that’s only if they’re functional,” he said. “If there is ing, said Russ Sykes, CEO of Detroit-based SmithGroup Inc., And with real estate comes taxes. some obsolescence to it, it would be sitting on the market the architecture firm which designed the building. The city of Warren brought in $8 million in taxes from GM forever.” “They could sublet pieces of it, but it would have to be in last year and $4 million from Chrysler, said Warren Mayor Identity is also a major issue on the minds of regional certain wings of the building,” he said. “The building was Jim Fouts. With a general fund budget of $100 million, the leaders. two companies prop up much of the city’s services and mu- For Fouts, it’s the image the GM Tech Center brings to the designed to be open and collaborative.” nicipal payroll. city. The other problem in making the building multi-tenant is “No good can come of this,” he said. “Chrysler has a tech center in Auburn Hills, GM has one the combination of office space with research-and-develop- The industrial buildings and factories up and down here,” he said. “They’d only need one. If we lose that tech ment space. Mound Road in Warren would be very difficult to fill, said center, we lose a big part of our identity.” “A lot of the space isn’t just office,” he said. “If you were a Bill Lichwalla, CEO of Southfield-based real estate company Similar worries fall in Detroit. tenant and only wanted the office space, you’d have a lot of Plante Moran Cresa L.L.C. If GM were to consolidate its space into the Chrysler head- unused space.” “A lot of the real estate portfolio that the combined com- quarters building in Auburn Hills, it would increase De- If there’s any bright spot to be found, it’s that there is an panies have is so specialized by size and nature of use that troit’s vacancy rate from 30.5 percent to 46.5 percent, accord- estimated increase in demand for automobile production ca- our clients would have little use for it,” he said. ing to a Crain’s analysis of market data from Grubb & Ellis. pacity to start in 2010 and continue for several years, said Doing anything with the massive facilities would require The scenario is considered a likely one among real estate Bernard Swiecki, senior project manager for Ann Arbor- large amounts of creativity, said Smith, who represents ten- brokers, who note that there is very little room to move based Center for Automotive Research. ants in office and industrial transactions. Under the right Chrysler employees to Detroit with the Renaissance Center “We’ve been taking so much capacity out for years,” he circumstances, there could be great opportunities. 94 percent leased. said. “With an uptick, there will be a need for more.” A good example, Smith said, is the move by The Parade Co. The six-tower office center would be 48 percent leased if Daniel Duggan: (313) 446-0414, [email protected] 20081027-NEWS--0044,0045-NAT-CCI-CD_-- 10/24/2008 5:22 PM Page 2

October 27, 2008 CRAIN’S DETROIT BUSINESS Page 45 Agencies: Retail: Stores juggle inventory www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] conjunction with the Federal start early this year because of lower-end items. But we’re not EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Uncertainty 0460 or [email protected] Reserve Bank of Chicago. a slightly shorter season than stopping on the higher ones.” MANAGING EDITOR Andy Chapelle, (313) 446- ■ From Page 44 August, July and June is typical. Scott said 47 percent of re- 0402 or [email protected] weren’t much better — in Au- “Some are even starting to ASSISTANT MANAGING EDITOR/FOCUS Jennette The agency doesn’t want to speculate on tailers reported last month Smith, (313) 446-1622 or [email protected] gust, 52 percent of Michigan re- do some direct mail in Septem- BUSINESS LIVES EDITOR Michelle Darwish, (313) potential outcomes, said Mark Benner, di- that they’d begun to stock or 446-1621 or [email protected] tailers reported a decrease in ber, because we have a little bit rector of communication for the agency. increased the amount of items COPY DESK CHIEF Gary Piatek, (313) 446-0357 sales from the previous year, shorter season this year,” he or [email protected] He did, however, say that Campbell- with lower price points in GRAPHICS EDITOR Nancy Clark, (313) 446-1608 45 percent of said. “There their inventory. or [email protected] Ewald is confident in its portfolio and its retailers said are five fewer COPY EDITOR Vic Doucette, (313) 446-0410 In a report released this extremely close relationship with GM. July sales days this year or [email protected] I worry that if month by Columbus-based DATA EDITOR Anne Marks, (313) 446-0418 or On the other hand, new uncertainty is dropped and than last year [email protected] “ TNS/Retail Forward especially unwelcome at Campbell-Ewald 55 percent re- between , 37 percent WEB GENERAL MANAGER Alan Baker, (313) 446- shelves are sparse, of shoppers say they plan to 0416 or [email protected] these days. While Chevy remains its core ported a de- Thanksgiving WEB EDITOR Christine Lasek, (313) 446-0473, account, the agency has worked for years cline in June, and Christ- spend less on the holiday than [email protected] shoppers won’t WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) to diversify, but its second-largest ac- according to mas, and re- last year, an increase of 10 per- 446-0403, [email protected] the index. tailers want centage points, and only 13 per- RESEARCH ASSISTANT Joanne Scharich, (313) count, the U.S. Navy, remains up for re- want to shop . 446-0419 cent say they plan to spend view. Back-to- ” to extend the EDITORIAL SUPPORT Anita Duncan, (313) school and season if they more this year. 446-0329 The Navy work is estimated to have Mary Liz Curtin, owner, NEWSROOM (313) 446-0329, FAX (313) 446- been worth more than $410 million over holiday sales Leon & Lulu in Clawson can.” Gifts for children and part- 1687 TIP LINE (313) 446-6766 have long At Claw- ners are the least vulnerable, the past three years. A decision is expect- REPORTERS been considered essential tar- son’s Leon & Lulu, co-owner ed in February, Benner said. according to the report — less Robert Ankeny: Covers the city of Detroit, Wayne gets for retailers, but the com- Mary Liz Curtin says she’s County government, and law. (313) 446-0404 or The agency, which reportedly laid off than one-fifth of respondents petitive economy means retail- planning to stock the shelves. [email protected]. about 50 employees earlier this year, also said they’d cut spending for Ryan Beene: Covers auto suppliers, steel. (313) ers are looking to boost sales “We are aware that Christ- those gift recipients. 446-0315 or [email protected] lost its Michelin North America Inc. account. throughout the year, said Tom mas is going to come and that Sherri Begin: Covers nonprofits and services. There has been positive news, too. GM That’s what Birmingham- (313) 446-1694 or [email protected] Scott, senior vice president at people are indeed going to buy based Adventures in Toys co- Daniel Duggan: Covers real estate and hospitality. consolidated all of its customer-relation- the Lansing-based Michigan presents for each other, and we (313) 446-0414 or [email protected] owner Debbie Vail is hoping. ship management work this month with Retailers Association. are going to have a great as- Jay Greene: Covers health care, insurance and the “People don’t skimp on their environment. (313) 446-0325 or Campbell-Ewald, and it has picked up “(Slow seasons) make it even sortment,” she said. [email protected]. kids, but they’re going to Chad Halcom: Covers education, non-automotive work from U.S. Mint, Olympic Paint and tougher, but it makes you look “I travel nationally and do a watch their pocketbook,” she manufacturing, defense contracting and Oakland Carhartt. for ways to reduce costs, it lot of research, and I think a lot and Macomb counties. (313) 446-6796 or said. [email protected]. Overall, the uncertainty in automotive makes you look for ways to in- of stores are either unable or Like Curtin, Vail said she’s Tom Henderson: Covers banking, finance, advertising work is reflective of the indus- crease sales throughout the afraid to buy a lot of product. technology and biotechnology. (313) 446-0337 or making sure to have a number [email protected]. try itself, Topolewski said. year, so you’re not as depen- But I worry that if shelves are Nancy Kaffer: Covers small business and retail. “I think it mirrors what’s going on in dent on those two main sea- sparse, shoppers won’t want to of inexpensive items for sale (313) 446-0412 or [email protected]. and is planning at least one Bill Shea: Covers media, advertising and the automobile business. As the compa- sons,” he said. “We have had a shop.” marketing, entertainment, the business of sports, nies change, the agencies have to as well,” lot of retailers tell us that the But like many other busi- storewide sale during the holi- and transportation. (313) 446-1626 or day season. [email protected]. he said. “Agencies had always been ahead holiday season, while still ex- ness owners, Curtin is plan- Nathan Skid: Multimedia reporter. Also covers the of the curve, but now seem behind and lag- tremely important, is not as ning to stock a number of In the economic climate, food industry. (313) 446-1654, [email protected]. such measures are necessary, LANSING BUREAU ging.” important as it was 10 years items with a lower price point. Amy Lane: Covers business issues at the Capitol, ago.” “We’ve always been price- Scott said. telecommunications and utilities. (517) 371- That said, he believes the agencies all 5355, FAX (517) 371-2492, [email protected]. or will survive the looming changes. Retailers, Scott said, are point conscious here, and have “You can’t just open the door 115 W. Allegan, Suite 220, Lansing 48933. “I’d be shocked if anyone was totally likely stocking leaner invento- always worked to have a full and hope people just walk in,” ADVERTISING obliterated,” he said. ries and cutting holiday hir- spectrum of prices,” she said. he said. ADVERTISING DIRECTOR Marla Downs, (313) Bill Shea: (313) 446-1626, ing. “We’re just paying a little bit Nancy Kaffer: (313) 446-0412, 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) [email protected] Promotions, he said, should more attention to some of the [email protected]. 393-0997 ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, Cathy Ross, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 CLASSIFIED ACCOUNT EXECUTIVE Greg Evangelista, 313-446-1655 Medications: Ex-ad agency head sues Leo MARKETING MANAGER Irma Clark Barriers EVENTS MANAGER Nicole LaPointe ■ MARKETING PROJECTS MANAGER Jennifer Dunn From Page 3 MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea the plans. costs,” Anderson said. Burnett for age discrimination Beckham, YahNica Crawford “Medical directors have dis- Rebecca McLaughlan, managing CIRCULATION Candice Yopp, Manager. cussed developing more care coor- director at Troy- PRODUCTION MANAGER Wendy Kobylarz BY BILL SHEA wrongful termination and PRODUCTION SUPERVISOR Larry Williams, dination to treat these disease cate- based McGraw (313) 446-0301 CRAIN’S DETROIT BUSINESS breach of contract counts. The gories (cardiovascular disease, SUBSCRIPTIONS (313) 446-0450, Wentworth, was agency has until March 17 to seek asthma and diabetes) and this (888) 909-9111 surprised with The ex-president of Troy-based dismissal on other counts. TO FIND A DATE A STORY WAS PUBLISHED: should translate into increased ac- the study’s re- Leo Burnett Detroit is suing the ad (313) 446-0367 or e-mail the Crain Information The agency, represented by De- Center at [email protected]. cess” to medications, Murdock said. sults because agency, alleging age discrimina- troit law firm Nemeth Burwell P.C. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY The biggest reasons patients are most employers tion, retaliation and breach of con- and the Southfield office of Jack- CRAIN COMMUNICATIONS INC. discouraged from filling prescrip- are increasing tract, among CHAIRMAN Keith E. Crain son Lewis L.L.P., denies all of PRESIDENT Rance Crain tions is higher co-pays charged by co-pays to their other things. Moore’s claims. SECRETARY Merrilee Crain health plans, prior authorization employers. Jim Moore, The agency’s Chicago-based TREASURER Mary Kay Crain who was fired Executive Vice President/Operations requirements and step therapy, or McLaughlan “Generic pre- parent, Leo Burnett Worldwide Inc., William A. Morrow provisions that mandate patients scribing is up and prior authoriza- last month, did not return two calls. Group Vice President/Technology, originally filed Manufacturing, Circulation first try lower-cost medications, tion and step therapy are growing” Moore is represented by Bing- Robert C. Adams said Joe, an internist in Southfield. in employer-sponsored plans, a lawsuit last ham Farms lawyer Scott Batey, Vice President/Production & Manufacturing July. Dave Kamis “Doctors see the firsthand ef- McLaughlan said. “There is a theo- who said by e-mail that he would Corporate Director/Circulation After a juris- fects of this all the time,” Joe said. ry — value-based plan design — that not comment now. Patrick Sheposh dictional ques- G.D. Crain Jr. Founder (1885-1973) The chief danger from these hasn’t caught on here yet that if you Moore was hired in October Mrs. G.D. Crain Jr. Chairman (1911-1996) tion and the ad- policies is that if people try to save lower co-pays you increase compli- Moore 2004 as executive vice president in dition of EDITORIAL & BUSINESS OFFICES: money by not filling prescriptions, ance and you reduce medical costs.” charge of General Motors Corp. inter- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) discrimination violations, he re- national work, when the Detroit 446-6000 once-manageable chronic condi- Anderson said some companies Cable address: TWX 248-221-5122 AUTNEW DET filed last November, according to tions could become more serious. are offering free medications to agency was known as Chemistri Inc. Subscriptions $59 one year, $98 two years. Out of online federal court records. He was promoted to president in state, $79 one year, $138 for two years. Outside “The majority of employers employees with conditions like di- U.S.A., add $48 per year to out-of-state rate for A jury trial is scheduled for July February 2005, and replaced by a want to strike the right balance abetes, heart disease and asthma surface mail. before U.S. District Judge George pair of co-presidents last year. Reprints: For inquiries call the reprints department with costs of the plans without to encourage good health. at: (800) 494-9051, Ext. 144 , or at Caram Steeh. During his tenure, Moore saw burdening their employees with “This is a relatively new phe- [email protected] Moore says Burnett broke the the Detroit office lose the $225 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is prescription barriers,” said nomenon in the last year to 18 state Elliott-Larsen Civil Rights published weekly except for a double issue the million Cadillac account. He also second week in August by Crain Communications Nathan Anderson, a principal and months,” Anderson said. “If you Act and the federal Age Discrimi- saw GM shift to his office the $261 Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. leader of the health and benefits manage the condition actively you Periodicals postage paid at Detroit, MI and additional nation Act when he was demoted million GMC account and the mailing offices. POSTMASTER: Send address practice at Mercer in Detroit. can prevent hospitalizations. This last year from president to general $122 million Buick account. changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- “If you limit access, there could would contribute to reducing bar- manager and his salary was cut in Those brands join Pontiac as the 9732. GST # 136760444. Printed in U.S.A. be adverse outcomes down the riers and improving access.” favor of younger employees. agency’s primary accounts. Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. road with increased hospital and Jay Greene: (313) 446-0325, Last Tuesday, Steeh denied Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any ER utilization that drives up [email protected] Leo Burnett’s motion to dismiss [email protected] manner without permission is strictly prohibited. 20081027-NEWS--0046-NAT-CCI-CD_-- 10/24/2008 6:13 PM Page 1

Page 46 CRAIN’S DETROIT BUSINESS October 27, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 18-24

videocast, call (313) 593- compared with income of Inc. interior auto parts 3584. BAE sues $37.4 million or 13 cents on plants, is consolidating its revenue of $302 million for Michigan operations at Beckham Cheating for a good cause the same quarter last year. four plants adding 325 jobs supplier for For the first six months, and investing $4 million at Crain’s 20 in their 20s Compuware reported net those sites, Automotive honoree Amanda Uhle is try- income of $56.3 million or 22 News reported, but the com- ing a novel approach to threatening to cents a share on revenue of pany also will shut down to lead Bing fundraising — cheating. $568.4 million, compared manufacturing at another Uhle’s nonprofit 826michi- with $37.6 million or 13 five sites, cutting 757 jobs. gan plans to host the inau- stop shipments cents on revenue of $581.4 Dearborn-based Auto- gural “Skrabbel for million for the same period motive Components Holdings Cheaters” on Nov. 23 at the uburn Hills-based last year. campaign BAE Industries Inc. L.L.C. said it would invest Ann Arbor Irish pub Conor A has sued a supplier more than $80 million in O’Neill’s to raise money for new equipment and tech- harles Beckham, who nance committee is devel- for threatening to stop ship- Palace Sports reports its mission of helping stu- nology at its Saline plant, headed city depart- oper Emmett Moten, Beck- ping parts if it did not agree dents develop writing skills. strong attendance Automotive News reported. C ments under three ham said, with the other co- The game is based on the to a price increase. DTE Energy Music Theatre’s Detroit Mayor Ken administrations, has re- chair yet to be named. Cathy classic word tile game, but BAE is asking for an in- 65-show season this year re- Cockrel Jr. owes $42,000 in signed as director of the De- Govan, owner of Govan & As- players are encouraged to junction to force Alabama- sulted in its third best aver- fines related to late cam- troit Public Lighting Depart- sociates L.L.C., will coordi- cheat their way to the based Whitesell Corp. to con- age attendance at 12,086 per paign finance disclosures ment to take over full-time nate event fundraising. championship, after collect- tinue to ship parts to BAE show, said parent Auburn from previous city elec- leadership of the “Bing for The Bing campaign ex- ing pledges. at the contract price. The company said it would be Hills-based Palace Sports & tions, The News reported. Mayor” special elections pects to open its headquar- The more money each forced to halt production Entertainment. Cockrel said in a state- campaign. ters at 2660 E. Jefferson two-person team collects, and force BAE’s customers Meadow Brook Music Festi- ment Tuesday he filed Industrialist and former Ave. next month. the more opportunity they Johnson Controls Inc., Lear val, on the campus of Oak- amended finance reports all-star NBA player Dave Bing have to cheat. Corp., and Setex Corp. and land University and managed has hired Jill Alper, of Wash- “We’re looking to get with the clerk’s office. UM to honor their automaker customers by Palace Sports, had near- ington, D.C.-based Dewey businesses partici- Cockrel, who has hired at- to stop production if White- ly 150,000 people attend Square Group, as lead political Desmond Tutu pating and getting torney Michael Hodge, also sell refused to ship to BAE. events, giving it its second strategist. Alper worked re- some rivalries go- has asked Garrett’s office to Nobel Peace best average attendance at cently on the Hillary Clinton ing,” Uhle said. waive previous late fees. Prize winner and 4,282 per show. Michigan campaign and In its “unoffi- Political consultant Archbishop Emer- Kilpatrick spent $286K on Gov. Jennifer Granholm’s re- cial tourna- Adolph Mongo on Friday itus of Cape Town election campaign. The Bing ment rules,” city-issued credit card filed a request with the city Desmond Tutu will Employers split on campaign team also in- 826 says, “If you Former Detroit Mayor clerk to remove Cockrel’s speak Wednesday in cludes: can’t stand the Kwame Kilpatrick spent at health insurance name from the ballot for Cliff Russell, a Detroit Ann Arbor after he receives blatant deception, trash least $286,000 on his city-is- Most Michigan employ- the February special may- broadcast veteran of 30 the 18th talking and foul play, try sued credit card since 2002, ers that currently don’t pro- oral election, saying the years, as press secretary. annual Yahtzee.” The Detroit News reported. vide health insurance cov- mayor lied when he signed Acquanetta Pierce, pres- University For more information, It’s not clear if the charges erage to their workers are an affidavit stating he was ident and CEO of Detroit- of Michi- visit www.826michigan.org. were related to city busi- opposed to contributing in compliance with state based Avance Communica- gan Wal- ness or if the city was reim- even as little as $50 per per- election laws when he sub- tions Inc., for public lenberg bursed. Also: son to provide coverage, ac- mitted petitions to run in relations and marketing, New book celebrates Medal. Kilpatrick, his wife, cording to a survey by New the special election, The The Urban Consulting After Carlita, and Michigan Attor- York-based Mercer Inc. News reported. Group L.L.C. of Detroit, in- Michigan architecture the 7:30 ney General Mike Cox are But companies that pro- Detroit City Council vot- cluding Eric Foster and Ka- Detroit Free Press archi- among potential witnesses vide employer-sponsored ed Tuesday to delay demoli- mau Marable. p.m. tecture critic and reporter named in a civil suit in- health benefits are in favor tion of Tiger Stadium after Beckham, who ran the De- medal Tutu John Gallagher and award- volving the slaying of Tama- of mandatory coverage for the Old Tiger Stadium Con- troit Water and Sewerage De- presenta- winning photographer Balt- ra Greene, the Associated all, the survey said. servancy paid $69,000 to the partment for Coleman Young tion recognizing outstand- hazar Korab have crafted a Press reported. city for security and main- and parks and recreation ing humanitarianism, Tutu hard-cover volume visiting Greene is said to have tenance and put $150,000 and service departments for will lecture. The free event ON THE MOVE Michigan’s great buildings. performed as a stripper at a into an escrow account, the Kwame Kilpatrick, said the will be held at Hill Audito- Great Architecture of rumored, but never proven, Ryuichi Kitaguchi to Detroit Free Press reported. timetable is challenging. rium. 2002 party at the mayor’s of- president, Jervis B. Webb Co., “It’s a short cycle (Feb. 24- A live videocast also will Michigan (Wayne State Uni- The conservancy must ficial residence. She was Farmington Hills, as of Oct. May 4) in the dead of win- be available for viewing at versity Press, $60) celebrates put another $150,000 into es- structures from Fairlane Es- shot to death several 31, remaining president of crow by Dec. 11. ter,” he said. “For a good the UM Detroit Center, 3663 Daifuku America Corp. He re- tate in Dearborn to the months later. The group has agreed to race, we’ll need to raise a Woodward Ave., in the Or- places President Susan Grand Hotel on Mackinac Is- A city paramedic, Ceno- provide design plans, cost couple of a million dollars.” chestra Place building. Webb, granddaughter of the Co-chairing Bing’s fi- To RSVP for the Detroit land. bio Chapa, said in an affi- estimates, budgets, a davit released Thursday he company founder, who will fundraising proposal and saw an injured woman at remain on the board of di- an economic feasibility rectors. Webb was co-CEO Detroit Receiving Hospital in evaluation by Dec. 1. with Masaki Hojo. fall 2002 who claimed she A study commissioned Brian Stewart was promot- had been beaten by Carlita by the Hispanic Business Al- ed to executive vice presi- Our e-mails will help keep you up-to-date Kilpatrick, The News re- liance and conducted by dent and COO and John Doy- ported. Wayne State University’s Cen- How informed are you? Wal-Mart was in our Nonprofit Bernard Friedman, chief chich to senior vice News Report, Solidica was in our ter for Chicano-Boricua Stud- I know there are hundreds of things federal judge in eastern president and CFO. trying to grab a precious piece of Technology Report, and ESD was ies and the WSU Center for your attention. in our Daily News Report from last Michigan, signed an order Urban Studies said that resi- But do you really get the Thursday. barring Kilpatrick from OTHER NEWS dents of Hispanic descent information you need to stay “in Sign up for any of those FREE e- practicing law in federal The freshman class at contribute about $14.5 bil- the know?” mails by going to court while his state law li- lion to the local economy. www.crainsdetroit.com/getemail. the University of Michigan is For example, did you know that the cense is suspended. 52 percent male and 25 per- Lou Pavledes, former But that’s not all. Wal-Mart Foundation will donate Kilpatrick goes to jail cent nonwhite, with under- head of Cobo Center, will $370,000 to the Food Bank Council Want to know about the black-tie Tuesday after pleading represented minorities ac- serve no more than 11 charity scene? Sign up for our of Michigan in response to an guilty to obstruction of jus- counting for 12.1 percent of months of his two-year sen- increased statewide need for food? Givers and Shakers e-mail to read Julie Yolles’ stories. tice and no contest to as- students and 7.8 percent of tence for hiding bribes Did you know that Ann Arbor-based saulting a sheriff’s deputy. students giving no racial from a contractor if he con- Solidica Inc. is expected to round WEB WORLD Want to read stories of interest to both sides of the state? Sign up identification, the school tinues to help prosecutors, up $7 million in VC funding this Alan Baker for Bridging 96. said Monday. the AP reported. week to help complete research on Web General Manager Compuware earnings drop armor plating to keep military Need to get a jump on our This fall was the first full vehicles safer from attack? subscription-only content before the mail room Detroit-based Compuware admissions cycle since the OBITUARIES Did you know that several speakers offered can deliver your paper on Monday? Sign up for Corp. (Nasdaq: CPWR) said 2006 Proposal 2 law took ef- solutions for Michigan’s ailing economy while our Weekly News Report. Thursday it had second- fect, barring race-weighted Antonio Rugiero, talking to the Engineering Society of Detroit? It’s free, easy, and helps keep you “in the quarter net income of $21.6 admissions in Michigan. founder of Roman Village All of those stories came from know.” million or 8 cents a share on JCIM L.L.C., the former restaurant in Dearborn, crainsdetroit.com e-mails last week. Why not sign up right now? revenue of $269.8 million, Plastech Engineered Products died Oct. 19. He was 70. DBpageAD.qxd 10/3/2008 2:27 PM Page 1

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NationalCity.com/BMMS

BUSINESS Financing MONEY MARKET SAVINGS %*

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Business Money Market Savings. At National City, we make it our business to make your business better, by offering great savings options with easy access to your funds. So while your money is reaching new heights, it’s never out of reach. Open an account today. Ask us about the increase in FDIC insurance coverage to $250,000. Stop by any branch, visit NationalCity.com/BMMS, or call 1-888-757-2818.

*Offer applies to Business Money Market Savings accounts opened by 11/3/08 at participating National City locations with funds not currently on deposit at National City. Introductory effective yield is based on monthly compounding for a four-month period. Maximum deposit of $1 million. After 3/03/09, the rate and yield may change. One account per taxpayer ID. Cannot be combined with any other offer. Not available for public or brokered funds. Certain fees may apply; see Pricing Schedule for details. Offer may be withdrawn at any time.

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