20120130-NEWS--0001-NAT-CCI-CD_-- 1/27/20126:57PMPage1 ©Entire contentscopyright2012byCrainCommunicationsInc.Allrightsreserved made partnerin2004. joined KPMGin1995and a veteranofthe counting changes.Paquette, assessing theimpactofac- mation-technology leaderfor was KPMG’snationalinfor- his retirementthisyear. regional auditleaderuntil Siebert staff of327andreplaces of counting andconsultingfirm the Detroitofficeofac- come managingpartnerof by brotherseeks$36M Roncelli rift:Ex-VPfired orders ascollateral,Page5 SBA programusespurchase sales, Pages14,16-18,20-21 and industrialleases,local Lists: Biggestdeals,office Page 11 trend continues, International M&A Big deals: new managingpartner KPMG Detroitofficehas

NEWSPAPER www.crainsdetroit.com Vol.28,No.5 Inside Finance Extra This JustIn Page 3 Paquette mostrecently Paquette, 40,willoverseea Heather Paquette KPMG LLP , whowillbethefirm’s Business leaders — TomHenderson . updates itsNew Michigan plan ..AirForce U.S. happen loft project Pontiac to make find away Developers will be- Rick , weren’t aBroadwayhit,saidPresi- have broughtittoDetroitevenif er crossovertoBroadway,would tures artisticperformancesthatnev- venue. a productionatthehistoricDetroit map forpeoplewho’veneverbeento Center forthePerformingArts musical “Fela!”couldput the TonyAward-winningBroadway the new nine-year,$214millioncontractwith pay forsuperstarsluggerPrinceFielder’s pizzaisn’tincreasinginpriceto Ready president ofthe December, won’tsuddenlygoup,either. Broadway musical resonates withbackers Music Hallhitsbigtimewith‘Fela!’ Pizza empire canswallow Tigers’ payroll isn’t stretchingdough In signingFielder, Ilitch But thehall,whichtypicallyfea- The upcomingthree-weekrunof No, theiconicLittleCaesars$5Hot-N- That wasthemessagefromChrisIlitch, Ticket prices,setforthe2012seasonin Detroit Tigers CRAIN’S DETROITBUSINESS B CRAIN’S DETROITBUSINESS Y S B HERRI Y Ilitch HoldingsInc. . B ILL W companies, afterthe S ELCH HEA tle CaesarsEnter- Fielder signing cial Thursday. was madeoffi- Music Hall His father, JANUARY 30–FEBRUARY5,2012 on the Tigers. heavy JEFFREY PHELPS/THEASSOCIATEDPRESS some the Detroit hitting to to bring expected Fielder is Prince family of TONY TLAW ATTORNEYS AT Lit- est andfinancialsupportforthemu- of culturalandmediaoutlets,inter- munity andanassistfromanumber the African-Americanbusinesscom- here inDetroit,”hesaid. injustices …issuesthatresonate ruption, educationanalysis…social community suchasgovernmentcor- cal issuesthatarehappeninginour Paul. dent andArtisticDirectorVincent With philanthropicsupportfrom The musical“discussesverytopi- team millionsinnewrevenue. World Series,whichwouldprovidethe salaries arehigh-stakesbetsonwinninga itches, baseballinsiderssay.Thebig be financiallystressfulforthewealthyIl- larger thanDetroit,butitisn’tthoughtto and JustinVerlander($20million). ($23 million),MiguelCabrera($21million) $63 millionalonethisseasontoFielder when benefitsareadded. bonuses —afigurethatinflatesfurther million to$120insalariesand payroll, whichislikelytosurpass$110 of revenuesourcestomeethisupcoming Mike Ilitch,insteadcanrelyonavariety prises Inc. players. to usepizzamoneypayforbaseball ture shieldsthemsomewhatfromhaving subsidize playerpayrollspending. dip muchintononbaseballbusinessto sports insidersdon’tthinkIlitchhasto that comesfromthepizzabusiness,but the companyhassaid.About$2billionof more than$4billioninannualrevenue, 400 richestAmericas. That spendingistypicalofmarkets The payrollincludesacombined The Tigerswillgetnearly$90million Major LeagueBaseball The Ilitch-ownedcompaniesgenerate good forNo.212on worth anestimated$2billion, See ‘Fela,’Page28 co-founder andTigersowner A BETTERPARTNERSHIP built to do what’s right. Work withalegalteam that’s an Ilitchpersonallyare See Fielder,Page29 Forbes ’s financialstruc- es canaffordit. Mike andMari- And theIlitch- ’ listofthe Performing Arts,saysthecenter’slargest-evershowfitsitsmission. Vincent Paul,presidentandartisticdirectorofMusicHallCenter for the health careandeducationalcosts. dren couldsavetaxpayersmillionsofdollarsinfuture data thatshowearlyinterventiontotreatautisticchil- lature sage inyears,saidDaveMeador,aleadingbusiness may givesupportersofthebillsbestchancepas- roe; andRepublicanleadersintheSenateHouse Leader RandyRichardville,R-Mon- autism legislation;SenateMajority Rick Snyder,whosupportsthe surers. credit —orexpenseoffsettoin- common groundbyofferingatax surers tocovertreatmentcosts. dates thatwouldrequirehealthin- Michigan tion Chamber ofCommerce insurance mandate Move intended tooffset autism bills added to Tax credit Critics ofanautismbillstalledinthe What opponentsofthebill—including A compromiseintheworksfinds The compromiseplannedbyGov. and ‰ for morethanthreeyearsneverhavedisputed Small BusinessAssociationof — objecttoaretheman- CRAIN’S DETROITBUSINESS B Y J , AY Michigan ManufacturersAssocia- See ourVSadonPage2 G REENE See Autism,Page26 $2 acopy;$59year Meador WNJ.com Michigan Legis- KENNY CORBIN Michigan ® 20120130-NEWS--0002-NAT-CCI-CD_-- 1/27/2012 5:17 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 30, 2012 MICHIGAN BRIEFS N. Michigan village, township support local businesses. The new items will be offered in addition to with same name consider merger Lansing casino announced – but that was easy part locally made and grown products Thanks to encouragement from already available in Meijer the state in the form of a $355,000 A week ago, Crain’s Sherri Welch reported on ates the Soaring Eagle Casino & Resort about 60 miles stores.” grant, the northern Michigan vil- crainsdetroit.com that the Sault Ste. Marie Tribe of north of Lansing in Mt. Pleasant, said it would try to — Michelle Muñoz lage of Onekama may merge its Chippewa Indians planned to build a $245 million casi- block the Lansing project, which also would com- services into those of surrounding no in downtown Lansing. Then came the numbers: pete with FireKeepers Casino near Battle Creek, Dow Chemical wins appeal backing Onekama Township, about 40 A 125,000-square-foot Kewadin Lansing Casino, an esti- about 45 miles southwest of Lansing. That casino is miles southwest of Traverse City. mated 1,500 permanent jobs, more than 700 con- owned by the Nottawaseppi Huron Band of Potawatomi $6.7 million verdict in patent case Village and township officials struction jobs, up to 3,000 slot machines and 48 table Indians. Midland-based Dow Chemical Co. have been working on the consoli- games, assorted bars and restaurants, two parking Terms of state compacts with the Nottawaseppi last week won a ruling upholding dation since October. decks with about 2,900 total spaces — and about $250 and the Gun Lake Tribe, which operates a casino near a $61.7 million patent-infringe- Officials are working through million a year in gross revenue, the tribe estimates. Grand Rapids, would allow both to stop sharing rev- ment verdict against Nova Chemi- how to distribute village assets Plus this: An estimated $6 million or more a year enue with the state if a casino opens within their cals Corp. from 2010 related to plas- ranging from office equipment, would fund the Lansing Promise, a new program to designated market areas, both of which include tic used in grocery bags. streets, parks and a sewer system provide college scholarships for every graduate of Lansing. Ⅲ Bloomberg News reported that the to the village’s long-term debt. the Lansing School District, Lansing Mayor Virg Matthew Fletcher, a Michigan State University U.S. Court of Appeals for the Federal Tim Ervin of the Alliance for Eco- Bernero said in the release announcing the casino. professor of law and director of the MSU Indigenous Circuit in Washington, D.C., reject- nomic Success, Manistee County’s The Sault Tribe said it planned to open a tempo- Law and Policy Center, told the Lansing paper City ed Nova’s arguments that its Sur- economic development group, told rary casino as it waited for approval of transfers for Pulse that it’s unlikely all of the legal issues sur- pass plastic didn’t infringe two the Traverse City Record-Eagle the sale of the land to the tribe and for a develop- rounding the casino will be settled within the next Dow patents and that the patents that officials with other communi- ment agreement. The tribe owns five other Kewadin 10 years. Fletcher also told MLive that the project were invalid. ties in Michigan are watching Casino properties in the eastern Upper Peninsula. had a “decent chance” of happening, eventually. Ⅲ Nova, owned by Abu Dhabi- Onekama’s process to determine Michigan has more than two dozen casinos. In contrast to the legalistic tones, in an inter- based International Petroleum Invest- whether they might pursue simi- The Lansing casino would mark a return to off- view on WXYT 1270 AM, Bernero offered this feed- ment Co., was accused of using Dow lar ideas. reservation gambling for the tribe, which formerly back to casino opponents: “Screw off.” He also called inventions for polymers that are Combined, the township and vil- was the majority owner of Detroit’s Greektown Casi- the contention that a Lansing casino would cost the thinner and stronger than conven- lage have just over 1,300 people, no. The tribe operates several Michigan casinos un- state $22 million in revenue sharing “absolute horse tional plastic. The Federal Circuit and residents questioned the need der the Kewadin name. dung ... absolute poppycock.” said that the patents clearly de- for two governments, the Record- That was Monday. Then came the feedback. Translation: Maintaining a poker face is off the Ⅲ scribed what Dow said it invented Eagle reported. Village and town- The Saginaw Chippewa Indian Tribe, which oper- table. and that the verdict of infringe- ship residents could vote on the is- ment “is supported by substantial sue in the August primary. made closer to home. To boost the $400,000 economic impact. seasonings. evidence.” state’s economy, Grand Rapids- On Sunday, about 50 Michigan- “Meijer is always pleased to sup- Find business news from Meijer, MSU manifest more based Meijer Inc. and the Michigan made items were expected to land port Michigan businesses,” Meijer around the state at crainsdetroit State University Product Center for on Meijer shelves across the state. co-Chairman and CEO Hank Mei- .com/crainsmichiganbusiness. made-in-Michigan mania Agriculture and Natural Resources The new items include marinara jer said in a statement. “Also, Sign up for Crain's Michigan Starting Sunday, Meijer shop- launched “Made in Michigan.” sauce, blueberry butter, gluten- there is tremendous interest from Business e-newsletter at crains pers could find more products The initiative is expected to have a free baking mixes and gourmet our customers to buy local and to detroit.com/emailsignup. 20120130-NEWS--0003-NAT-CCI-CD_-- 1/27/2012 6:56 PM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 3

Inside Port Authority’s agenda: Roncelli Inc. wants out of feud Inland investments, loading ships in Detroit, Page 4 Ex-VP, fired by brother, seeks $36 million Four medical groups form BY CHAD HALCOM and unjust enrichment. owned by the Roncelli family for 250-physician strong CRAIN’S DETROIT BUSINESS He contends that Gary, 60, chair- shareholder oppression, breach man of Roncelli, fired him without and other claims — with one claim organization, Page 7 The Sterling Heights construc- proper cause after the brothers had offering the potential of damages tion and building management a confrontation at the corporate of- of up to three times that amount. company Roncelli Inc. is trying to re- fices last April. Scott claims that Meanwhile, Roncelli Inc.’s attor- move itself from a family legal dis- Gary steered business and compa- neys at Giarmarco Mullins & Horton Company index pute. ny resources to benefit himself at PC have sent letters to Scott about Gary Roncelli Scott Roncelli Scott Roncelli, 52, of Bruce the other Roncelli owners’ expense redeeming his shares, and the com- These organizations appear in this week’s Crain’s Township, co-owner and former and is “low-balling” on an offer to pany expects to file its answer to wish would not be aired in public,” Detroit Business: executive vice president of Roncel- buy out Scott’s nearly 19 percent the Dec. 28 lawsuit in court this he said. Ally Financial ...... 6 li Inc., seeks $36 million in dam- stake in the company. week. Hank Riberas, director of real Amerigon ...... 12 estate and business development ages in the suit in Macomb County The Scott Roncelli lawsuit Gary Roncelli returned a call Amherst Partners ...... 11 Circuit Court, alleging shareholder claims $12 million in damages late Friday but declined to com- for Roncelli, said the company oppression, breach of contract and against Gary Roncelli, Roncelli ment on details of the lawsuit. “It’s Angle Advisors-Investment Banking ...... 11 fiduciary duty, fraud, conversion Inc. and nine other companies a very private family matter that I See Roncelli, Page 25 Arboretum Ventures ...... 11 Business Leaders for Michigan ...... 3 Charles H. Wright Museum ...... 28 Chrysler Financial ...... 12 Comprehensive Medical Center ...... 7 CEO group wants Detroit Institute of Arts ...... 28 Detroit International Bridge ...... 27 Detroit Public Library ...... 28 to drive private Detroit Tigers ...... 1 Detroit-Wayne County Port Authority ...... 4 Fifth Third Bank ...... 6 Giarmarco Mullins & Horton ...... 3 sector investment Hayes Lemmerz International ...... 12 Hayman ...... 28 Political analysts: Hitting Hillside Productions ...... 25 Hydra Professionals ...... 12 goals takes spending cash Ilitch Holdings ...... 1 Jones Lang LaSalle ...... 19 BY NANCY KAFFER McKinsey ...... 27 CRAIN’S DETROIT BUSINESS Mental Health Association in Michigan ...... 26 Business Leaders for Michigan released an up- Michigan Campaign Finance Network ...... 27 dated version of the group’s Michigan Turn- Michigan Chamber of Commerce ...... 1 around Plan last week, including a prescription Michigan Health and Hospitals Association ...... 26 to make Michigan a top 10 state when it comes Michigan Healthcare Professionals ...... 7 to competing for businesses and residents. Michigan Manufacturers Association ...... 1 A new component of the GLENN TRIEST CEO group’s plan is a frame- Kyle Westberg, president and CEO of West Construction Services, has such confidence in the future of Michigan State Medical Society ...... 26 DETAILS work for boosting private sec- Pontiac that he moved the company there from Troy six years ago. Millennium Medical Group ...... 7 New Michigan: tor investment and job cre- Music Hall Center for the Performing Arts ...... 1 The plans and ation, particularly in Nederlander Detroit ...... 28 who’s working building industries that are on them, already enjoying success Oakland Medical Group ...... 7 Page 27 around the state. Pursuing Pontiac’s potential P&M Corporate Finance ...... 13 Six assets identified to Robert Bosch ...... 13 grow “the New Michigan” are the state’s engi- Roncelli ...... 3 neering talent, strategic logistics location, high- Lofts plan gets lift with complex financing Small Business Administration ...... 5 er education offerings, natural resources, auto- Small Business Association of Michigan ...... 1 motive industry and life sciences expertise. BY DANIEL DUGGAN SPX Service Solutions ...... 13 Besides pushing to grow these assets, the CRAIN’S DETROIT BUSINESS turnaround plan calls for responsibly manag- Taubman Centers ...... 11 ing finances, efficiently providing public ser- When Kyle Westberg saw the potential for UM Ross School of Business ...... 12 vices, creating a competitive business climate, the city of Pontiac six years ago, he moved his University Musical Society ...... 28 increasing education attainment for more state construction company’s headquarters to the residents and accelerating the growth of cities city from Troy. University of Michigan ...... 11, 19 and metropolitan areas. Since then, he has continued to see potential West Construction Services ...... 3 What’s new about the plan? — and now hopes to boost downtown with a WXYZ-Channel 7 ...... 28 The New Michigan plan is $20 million redevelopment of a historic build- Zipcar ...... 4 less prescriptive, supplying ing. COURTESY OF WEST CONSTRUCTION SERVICES instead what the CEO group Construction started last week on An artist rendering shows the completed Lafayette hopes will be a catalyst to di- Lafayette Lofts, a redevelopment of the Lofts project. Department index rect private sector invest- 80,000-square-foot former Sears, Roebuck & Co. ment in key asset areas. department store, at 154 N. Saginaw. It was found it to be a blank canvas, architecturally.” BANKRUPTCIES ...... 6 “These six assets we’re ex- built in 1929. Working on the physical structure of the BUSINESS DIARY ...... 24 cited about because they are By next December, the project will have 46 building will be challenging, but not as much CALENDAR ...... 24 already here,” said Doug residential units with rent ranging from $590 as the financial structure. JOB FRONT ...... 23 Rothwell Rothwell, president and CEO to $1,300 a month, along with roughly 20,000 To finance the project, Westberg leveraged of Business Leaders. Previous economic devel- square feet of retail space. two bank loans against a long list of public CLASSIFIED ADS ...... 25 opment plans for the state have been sector-fo- “I grew up in a small town — Manistee — and subsidies and tax credits. KEITH CRAIN...... 8 cused, he said. “This is asset-focused.” I’m used to a small-town feel,” said Westberg, Lending for the project include a bridge LETTERS...... 8 Hans-Werner Kaas, director at the Detroit of- president and CEO of West Construction Services loan from Cleveland-based KeyBank and tax OPINION ...... 8 and one of the three developers on the project. OTHER VOICES ...... 9 See Goals, Page 27 “I’ve found that here in Pontiac, but I also See Pontiac, Page 28 PEOPLE ...... 23 RUMBLINGS ...... 30 Advisory board Salute an entrepreneur WEEK ON THE WEB ...... 30 THIS WEEK @ Help shape Crain’s coverage and get the Deadlines for Crain’s Salute to Entrepreneurs chance for discounts on Crain’s products by are earlier this year. Learn more and nominate WWW.CRAINSDETROIT.COM taking a survey, crainsdetroit.com/readerpanel. someone at crainsdetroit.com/nominate. 20120130-NEWS--0004-NAT-CCI-CD_-- 1/27/2012 6:41 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 30, 2012 Zipcar Inc. exec looks to spread some ‘disruptive innovation’ at Idea: Detroit

BY MICHELLE MUÑOZ company has vehicles in Canada, SPECIAL TO CRAIN’S DETROIT BUSINESS the United Kingdom and Spain. He said there are 10 million people Rob Weisberg, chief marketing within a few blocks of a Zipcar. officer of Cambridge, Mass.-based the last two years or so has been Weisberg will be one of three Zipcar Inc., thinks Detroit is ready inspiring,” Weisberg said. “De- keynote speakers at the Idea: De- for some “dis- troit is a hot bed of innovation, and troit conference. Erik Qualman, au- ruptive innova- it really has an opportunity to thor of Socialnomics, and Mike tion.” change the world.” Jbara, president and CEO of New Weisberg will Weisberg lived in the Detroit York-based music label WEA Corp., speak at the area for more than six years while are the others. Idea: Detroit con- working as a vice president of mul- Also scheduled to speak are Alli- ference March 7, timedia marketing for Domino’s Piz- son Arden, vice president and pub- presented by za Inc. before joining Zipcar in 2010. lisher of Advertising Age, and au- Crain’s Detroit Zipcars are parked in lots around thor of “The Book of Doing”; Business and Ad- major metropolitan areas and uni- Howard Hertz, shareholder of vertising Age. Weisberg versity campuses. Members pay an Bloomfield Hills-based law firm Consultative The conference annual fee to have access to any of Hertz Schram PC; and Brian Pastoria, Professional life insurance counseling in a non-salesy environment looks at ideas for reshaping the city. the cars for a few hours or a day. partner of Detroit-based Harmonie Disruptive innovation, or ideas Gas and insurance are included in Park Media Group LLC. that change the way people think the hourly rental fee. The Idea: Detroit conference about established concepts, is “We view ourselves as like the will begin at 8 a.m. and end at 4:30 We work with our clients and their advisors to: what Weisberg looks forward to Swiss Army Knife of car owner- p.m. at the Fox Theatre, with a net- hearing about at the conference. ship,” Weisberg said. “We have a working and cocktail reception to Reduce estate and income tax Enhance fixed income “I can certainly say that rejuve- vehicle for every need.” follow until 7 p.m. More informa- yields Solve family and business issues Improve nation and the getting-back-up- Detroit could be a future home tion and registration can be found existing life insurance policies. again that I’ve seen in Detroit in of Zipcars, Weisberg said. The at crainsdetroit.com/events. Port Authority seeks OK to invest

BIRMINGHAM, MICHIGAN 248.731.9500 WWW.SCHECHTERWEALTH.COM in inland projects, change ballast law

BY BILL SHEA for 870 truckloads driving to Tole- CRAIN’S DETROIT BUSINESS do, Jamian said. “We would love that from a mar- The Detroit-Wayne County Port Au- itime business standpoint; we thority wants legislative approval don’t want to ship agricultural that would allow it to make inland products from Toledo,” he said. infrastructure investments and Jamian also said plans are afoot change an environmental law so to create a water taxi service be- that oceangoing cargo ships would tween Detroit and Windsor from be able to load local exports here the authority’s $15 million, 21,000- rather than in Toledo. Jamian Kowall square-foot public passenger ter- Currently, the authority can fi- minal that opened last year. nance projects only along the De- system of highway, rail, air and The authority also spent $7.1 troit River — a notable example water logistics businesses and in- million as part of that project to being $43 million in bonds it issued frastructure, with the ultimate build an offshore wharf to serve in 2004 to aid construction of the B goal of creating new jobs and cruise ships and other deep-draft Beaubien Place parking garage ad- boosting economic development. vessels in the Detroit River. Jami- jacent to the Renaissance Center. The other major issue on the au- an said a dozen Great Lakes plea- Investing in infrastructure in- thority’s agenda is tweaking the sure cruises will originate from land will aid not only the port au- state’s law that bans the discharge the facility. thority but the region’s economy, of ballast water to limit invasive He also heralded the authority’s said Director John Jamian. species from entering the Great foreign trade zone, which he ex- Sen. Mike Kowall, R-White Lake Lakes. pects will soon become the na- Township, is working on bills that The goal is to amend the law to tion’s largest (it’s now second) be- would authorize the port authority allow oceangoing freighters to cause it is home to 1.6 million tons to issue bonds for inland projects, flush their ballast tanks with salt- of aluminum stored in the zone’s Jamian said. water and undergo U.S. Coast Guard bonded warehouses. His remarks came during a inspection of the tanks at Montreal Customs duties and excise taxes roundtable discussion sponsored to ensure environmentally damag- are deferred on domestic and for- by WWJ 950 AM on Thursday about ing creatures such as the zebra eign cargo while it’s stored in such the port and water trade as part of mussel aren’t flushed into local a zone, and the taxes can some- the region’s economic develop- waters, Jamian said. times be reduced or eliminated. ment. Also participating were Ships use ballast water to coun- The zones are aimed at aiding cost Michael Finney, director of Michi- terbalance cargo weight when competitiveness for U.S.-based op- gan Economic Development Corp., loading. Detroit is able to receive erations of companies against for- and Glen LeRoy, dean of the Col- cargo from oceangoing vessels be- eign-based firms. lege of Architecture and Design at cause ships don’t have to dis- According to port authority doc- Southfield’s Lawrence Technological charge ballast water to bring in uments, 29 companies contractual- University. goods. ly use its privately managed port The authority aims to position But Michigan ships carrying ex- facilities and terminals to manage itself as a key element in an inter- ports such as steel and agricultur- 17 million tons of cargo annually. modal transportation system that al products must be loaded at Tole- Cargo ships make about 1,500 could create up to 200,000 jobs in do because it’s the nearest U.S. trips annually from the terminals the region. port that doesn’t have such ballast along the river. The desire — advocated in vari- restrictions. The city, county and state fund ous ways by several organizations, Changing the law would mean the authority. transportation entities and local 40 or 50 additional dockings of Bill Shea: (313) 446-1626, governments throughout the re- ships in Michigan ports, Jamian [email protected]. Twitter: gion — is to create a streamlined said, and each docking accounts @bill_shea19 20120130-NEWS--0005-NAT-CCI-CD_-- 1/27/2012 6:24 PM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 5 SBA program uses purchase orders as collateral Growth Capital Symposium BY GARY ANGLEBRANDT larger overhaul of the SBA’s The SBA has been holding meet- CRAIN’S DETROIT BUSINESS SBA LOAN EVENTS CAPLines lending program, aimed ings with SBA-approved lenders Ⅲ at helping businesses get working throughout the country to explain Perhaps no problem is more For businesses: The U.S. Small capital to meet immediate growth how the program differs from its accepting common among second-stage busi- Business Administration will be opportunities. among the presenters at a predecessor and to get them to nesses — nor more bedeviling — The original program was hard- start offering the loans. than finding capital to fund roundtable on how to approach lenders for an SBA-backed loan. ly used, in part because the paper- “We’re definitely seeing a lot of growth. applications The event will be Feb. 16 at the work required of lenders was more interest out there” among busi- To address that situation, the than that for much larger, more lu- Oakland County Executive Office nesses, Thompson said. “It’s a mat- Organizers of the 31st annual U.S. Small Business Administration Building Conference Center. For crative loans. The program now al- ter of finding lenders.” Michigan Growth Capital Sympo- has launched a program that al- more information, go to lows lenders to follow more of Cook said the Michigan district sium have opened up the appli- lows businesses to get loans based www.oakgov.com/peds/calendaradd their own credit guidelines and has participated in only two cation process for those hoping on new purchase orders. ress and click on “Team SBA procedures, within more general CAPLines programs in the past to become one of the 40 emerg- Under this asset-based lending Financing Roundtable.” SBA guidelines, so lenders don’t program, the or- Ⅲ For lenders: The SBA will hold a four years. He expects the district ing companies to make pitches have as many documents to file. to see “a couple hundred (loans) ders are used as conference for lenders to learn Kelley and other SBA officials for funding at the Marriott Resort more about the agency’s programs over the next few years,” with collateral. Pro- met with lenders throughout the in Ypsilanti May 15-16. visions and con- and changes to those programs. loans of more than $350,000 seeing The symposium is one of the The SBA Lenders’ Conference is country during the summer to get trols are put in the most activity in the program. largest in the country, drawing scheduled for March 15 at the feedback ahead of the CAPLines Matt Egrin, president of Broach- hundreds of venture capitalists place to direct Hyatt Regency Dearborn. For more relaunch Oct. 1. He said the re- ing Machine Specialties Co. in Novi, payments for information, call (313) 226-6075 duced paperwork and increased from around the country, many the orders to the ext. 259. borrowing and guarantee limits said his company has outgrown its of them graduates from the lender, said Al should make the new program current bank and looks to add an- Ross School of Business at the Cook, assistant place less emphasis on the three- more widely used. other lender. In general, SBA loans University of Michigan, named af- that have come his way have been Cook director of year look-back lenders commonly Also as part of the CAPLines ter Stephen Ross, who studied lender relations use. Banks look at the books of the overhaul, the SBA raised the maxi- too expensive. But the loans based private equity finance under for the SBA’s Michigan district. business going back the previous mum loan amount to $5 million on purchase orders could be useful professor David Brophy, The borrowing business uses the three years to judge the risk of the from $2 million. The maximum for many businesses in Michigan, founder of the symposium. money to buy resources to meet loan. Because most companies suf- guarantee percentage is 75 percent he said. Since 2000, more than 300 new orders, such as inventory, la- fered a serious dip within the past for loans between $150,000 and $5 “It can be a great vehicle for companies have made presenta- bor or equipment. three years, getting loans has been million and 85 percent for loans growing companies that have new tions, and about 70 percent of The loan can be based solely on difficult. under $150,000. The maximum ma- business on the books,” Egrin said. them went on to raise capital to- purchase orders and still qualify “With the support of the govern- turity period has been raised to 10 “In Michigan’s manufacturing taling about $1.7 billion. for the SBA guarantee. This is the ment guarantee, you can down- years from five for most of the economy, lenders are still very The early application dead- first time the SBA has offered this, play historical financials,” said loans under this program. These conservative about making new line is Feb. 23. Presenting com- said Patrick Kelley, a senior advis- Rachel St. James Thompson, changes bring the loan limits in deals.” panies will be selected by a er in the agency’s capital access lender relations specialist for the line with the SBA’s other 7(a) Gary Anglebrandt: (313) 446- committee of venture capital- program. SBA’s Michigan district. loans, which make up the bulk of 1621, [email protected]. ists from around the U.S. The change allows lenders to The added offering is part of a the agency’s loans. Twitter: @anglebrandt — Tom Henderson

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Page 6 CRAIN’S DETROIT BUSINESS January 30, 2012 Low rates, OEM push for facelifts have dealers seeking loans

BY JAMIE LAREAU 15 years. the program. down 20 percent to 25 percent for CRAIN NEWS SERVICE WHY DEALERS WILL BORROW Floorplan interest rates remain Lender Ally Financial Inc. is offer- the loan. He says it’s worth it be- low, too. Cook said he pays about ing a customized loan structured cause he can build a larger service Many lenders expect the number of Dealer Steve Cook is still paying 1.9 percent interest on his floor- around Essential Brand Elements. department and boost his busi- commercial loans taken by dealers off the store renovations he made plan loan. “We are the preferred lender ness. six years ago. to rise by as much as 10 percent this year. Here’s why: In a recent informal survey con- with GM,” said Tim Russi, Ally’s Yet he’s ready to take out anoth- Ⅲ Interest rates are low. ducted by Automotive News, more executive vice president for North er loan to help than half of the 336 dealers who American auto operations in Jack- Expected growth Ⅲ Credit is available. pay for about responded indicated they plan to sonville, Fla. Attractive interest rates aside, Ⅲ Many manufacturers are $600,000 in addi- pay for remodeling their stores Russi said Ally has offered the one challenge dealers could face pressing dealers to renovate. tional store up- using a loan from a commercial customized loan for about a year. when applying for a commercial Ⅲ Improving vehicle sales grades. bank or captive finance arm. That “There was a period where the loan, also called a real estate loan, encourage business expansions. “I’ll try to pay level of interest from dealers is dealers were focused more on sur- is the decline in the dealership’s for renovations the reason some lenders see po- vival and restructuring their busi- real estate value over the past few with a loan of business at Fifth Third Bank in tential for a spike in loan business ness due to the rapid decline in recessionary years, Fifth Third’s rather than Cincinnati, Ohio. this year. (sales),” Russi said. “Many are Sesler said. spend my own “Floorplans are increasing, too, Over the past six months, dealer more sound now from a profitabili- This means some lenders might cash then regret due to the economy with dealers Cook demand for commercial loans and ty standpoint. To compete, con- ask dealers to make a larger down it if there’s a selling more cars. Our customers floorplan extensions has in- sumers want an attractive envi- payment than was required five double dip in the economy,” said who have franchises from Japan, creased by about 10 percent at ronment to visit when they’re at a years ago for such a loan. At Fifth Cook, owner of Cook Chevrolet- we’re seeing increases along those BMO Harris Bank, said Ghram dealership.” Third Bank the down payment re- Buick in Vassar. lines as that sector begins to re- Debes, BMO Harris managing di- Ford Motor Co.’s Lincoln brand is mains in the 20 percent range, Many lenders expect the num- bound.” rector of dealership finance in also encouraging dealers to reno- Sesler said. ber of commercial loans to Fifth Third Bank is so confident Chicago. vate showrooms as Ford works to Basically, lenders require deal- car dealers to rise by as much as of the impending boost to business “We expect our growth to be revitalize the brand. ers to have sufficient working cap- 10 percent this year as some that it’s looking to hire four new 20 percent this year and that At Star Ford Lincoln in Los Ange- ital to operate their dealerships if manufacturers push dealership fa- loan sales representatives to work comes from a variety of loans,” les, dealer Steve Bussjaeger is they want to qualify for a real es- cility facelifts. Throw in low inter- with dealers in Florida, Kentucky, Debes said. building a new Ford Lincoln store. tate loan or even extended floor- est rates, and loans can be appeal- western Pennsylvania and central He’s still getting bids on it. But he planning. ing. Indiana. estimates it’ll cost him between That’s why dealer Roger Lenders also expect many deal- During the recession, many Customized loans $6 million and $9 million. Schlegel would like to borrow ers to extend their floorplan bor- manufacturers eased off pressing Under its Essential Brand Ele- “I’m going to finance as much as money to finance a store upgrade, rowing because some industry an- dealers to renovate stores. But that ments program, which was started I can,” Bussjaeger said. “Rates are but worries his dealership will not alysts predict U.S. light-vehicle has changed. in 2009, General Motors Co. makes low, and banks, from what I’ve qualify for a loan. sales could hit 14 million units this quarterly bonus payments to deal- seen, are willing to take a risk. The “We just got done with one year year. An attractive environment ers who meet standards in four ar- economy is on the way up, and I of road construction in front of “We are seeing requests on the eas: employee training, digital feel Ford is worth taking a risk our building,” said Schlegel, who commercial real estate side related Some dealers say commercial marketing, customer retention on.” owns Heritage Chevrolet in Toma- to loans on dealer expansion or banks are offering interest rates and facilities. On average, facility Bussjaeger, who said he sells hawk, Wis. Add that disruption to renovation,” said Mark Sesler, ranging from 2.5 percent to 6 per- upgrades account for 90 percent of about 1,500 new and used vehicles a couple of lean years, he said, and manager of the dealer finance line cent on loans ranging from five to dealers’ costs of complying with a year, expects he’ll have to put “our dealership is really strug- gling.” Heritage sells about 450 new and used vehicles a year, down from 700 in the mid-2000s. “We’ll probably test the market, but we’ll have to hold off doing the Make an Executive Decision. renovation as long as we can,” Schlegel said. “Our ownership is financially strong, but the dealer- ship itself has not been prof- Choose Sommers Schwartz itable.” And profitability is a key for To Protect your career many lenders when granting ex- tended floorplans and commercial loans. and your Family “When I talk to dealers, that’s one thing we want to get: a good solid understanding of what is the intention of that dealer to build a Decisions… decisions. capital base to allow for a down- turn and if used car prices collapse Choosing the right law firm to handle your again,” said Fifth Third’s Sesler. employment law dispute can be difficult. 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January 30, 2012 CRAIN’S DETROIT BUSINESS Page 7 4 medical groups form new physician organization

BY JAY GREENE vice Ltd., also said physicians are doctors in Michigan have qualified allow the flexibility to create an (ac- CRAIN’S DETROIT BUSINESS joining larger organizations for to receive bonus payments for hit- countable-care organization) or This will result in marketing and patient referrals. ting quality, efficiency and admin- similar organization as encouraged Four medical groups have “ “Michigan Healthcare has put to- istrative targets. by the government as well as to par- formed Michigan Healthcare Profes- both cost gether a big consortium of different Layne said Michigan Healthcare ticipate in large-scale quality and sionals PC, a Southfield-based specialties where they will refer to will work with Blue Cross and oth- cost control programs organized by multispecialty medical group savings and each other,” Justusson said. “It is er payers in Southeast Michigan on third party payers,” Layne said. with about 250 physicians, to like an accountable-care organiza- a variety of quality improvement Jay Greene: (313) 446-0325, contract with health insurers, improvement tion or a tight network where they and financial incentive projects. [email protected]. Twitter: develop joint business ven- can control where patients go.” “The formation of this group will @jaybgreene tures and prepare for health in patient Justusson said more physician care reform. organizations of this type will The new group also is ex- care. form as private and government pected to develop an integrated ” insurance reimbursement drops electronic medical record sys- Michael Layne, and doctors seek other ways to bol- tem, share such back-office Marx Layne & Co. ster their patient bases. business services as billing and col- “If they have monetary interest lections, measure patient outcomes, Jeffrey Margolis, a Royal Oak- in a laboratory or radiology, they develop quality measures and best based oncologist, is president of will have to make sure they do not practice guidelines, said Michael Michigan Healthcare. He also was violate (federal) self-referral Layne, a spokesman for Michigan president of Beaumont Oncology Net- laws,” Justusson said. Healthcare and president of Marx work, which until late last year Rodger Prong, executive direc- Layne & Co., Farmington Hills. held a contract to develop oncolo- tor of Waterford-based Oakland “This will result in both cost gy programs at Beaumont Hospital Physicians Network Services, said savings and improvement in pa- in Royal Oak. one big financial reason for physi- tient care,” Layne said. “Commu- Specialties in Michigan Health- cian organizations to form is to nication between physicians and care include internal medicine, participate in the physician group patients will be enhanced through family medicine, surgery, radia- practice incentive program spon- education and increased involve- tion oncology, urology, cardiology, sored by Blue Cross Blue Shield of ment of patients in the delivery of pathology, radiology, rheumatol- Michigan and other payers. their care and services.” ogy and geriatrics. Of Oakland Physicians’ 425 pri- Physicians who have joined “MHP has a strong base of prima- mary care and specialty physi- Michigan Healthcare are part of Mil- ry care physicians that will allow cians, who are closely affiliated lennium Medical Group PC, Southfield; effective coordination of the total with St Joseph Mercy Hospital Oak- Oakland Medical Group PC, Farming- health care of (its) patients,” Layne land in Pontiac, some 28 practices ton Hills; Comprehensive Medical Cen- said. “Medical and surgical special- with 51 physicians and five nurse ter PLLC, Troy; and 21st Century On- ists in the group add to the effective- practitioners are part of the physi- cology of Michigan, East Lansing, ness and efficiency of patient care.” cian group incentive program. according to Michigan Healthcare’s Lynn Justusson, vice president Under the program, about 40 website (www.mhppc.com). of Troy-based Princeton Billing Ser- physician organizations and 15,000

CRAIN’S SEEKS TO HONOR COMPANIES’ BEST GENERAL AND IN-HOUSE COUNSEL Michigan companies have been at ground zero for some of the most tumultuous business events in this young century. How well have attorneys handled the challenge? Who are Michigan’s best in-house attorneys and general counsels? This is the second anniversary of Crain’s General and In-House Counsel Awards and summit event You Deserve to See All of Your Commercial Real Estate Options presented by Crain’s Detroit Business, the Association of Corporate Counsels Detroit chapter, the State Bar of Michigan business law section and the Oakland County Bar Association. Candidates will be judged on measures such as litigation avoided, reduction in claims, cost containment and pro bono/community service. Nominations are due Feb. 13. Statewide nominations accepted. Visit crainsdetroit.com/nominate to fill out the form. Winners will be announced in Real Estate Strategy the April 9 issue of Crain’s Detroit Business. The recognition event Tenant Representation will follow an education symposium on May 25 at St. John’s Golf & Buyer Representation Conference Center in Plymouth. Project Feasibility For questions about the nomination process, contact Chad Before you make a move, let us uncover every commercial Construction Oversight Halcom at [email protected] or real estate option. As an unbiased, tenant representative, (313) 446-6796. For technical questions regarding a nomination we bring more thought per square foot. Incentives form, contact Jenny Griffith at (313) 446-6003 or Lease Administration [email protected] pmcresa.com 248.223.3500 20120130-NEWS--0008-NAT-CCI-CD_-- 1/27/2012 5:14 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 30, 2012 OPINION LETTERS Fielder’s pay is what Move ahead on a state HCE Editor: two evils. It would be foolish for Crain’s Detroit Business On behalf of the more than Michigan to forgo federal grant as- welcomes letters to the editor. 20,000 small-business owners sistance, especially for such an im- All letters will be considered for across Michigan who constitute portant issue as health care insur- market, fans demand publication, provided they are the Michigan Business and Profes- ance. If the Supreme Court does signed and do not defame eventually rule that this law is un- sional Association and its sister individuals or organizations. constitutional, that would be the alk about Crazy Bread. Detroit Tigers fans are still association the Michigan Food Letters may be edited for length appropriate time to react accord- basking in excitement over the promise that slugger and Beverage Association, we and clarity. ingly. Prince Fielder is coming to town under a nine-year, would like to commend you for T Write: Editor, Crain’s Detroit We look forward to working your recent editorial, “Snyder de- Business, 1155 Gratiot Ave., $214 million contract. serves biz support for agenda” with the Legislature and governor Detroit, MI 48207-2997. As Bill Shea reports on Page 1, the decision will make (Jan. 23), endorsing the develop- to mold an exchange that is best the Tigers’ payroll skyrocket. ment of Michigan’s online health Email: [email protected] suited for Michigan residents and But we also know the Ilitches are in a position to afford insurance marketplace. the business community alike. Although our associations did gan manage the development of its Our statewide associations look the expense right now based on the healthy state of their not support the passage of the Pa- own health care exchange. forward to working with the Oba- holdings. tient Protection and Affordable We agree that we must continue ma administration on any and all Naturally, since this is Detroit, critics are wondering if Care Act, when given the option of to move forward with Snyder’s issues that affect the ability to suc- the money would be better spent in other ways. Well, it’s allowing the federal government plan in order to ready our state for cessfully do business in Michigan. Bonnie Bochniak the Ilitches’ money, and last we checked, in America, pri- to control Michigan’s health care the implementation of a health exchange or having more state care exchange, as this is currently Vice president, government relations vate business owners can spend their money any way they Michigan Business and Professional Association control, we strongly support Gov. the law of the land. Michigan Food and Beverage Association want. Snyder’s position to have Michi- The state option is the lesser of Warren Mike Ilitch is spending a whole lot of money for the sake of some sports drama, TV interest and expected game atten- dance gains. Large athlete contracts like Fielder’s may seem excessive, but it’s a game of supply and demand, and Detroi- ters love sports. TALK ON THE WEB Bring on the home runs. This city can use them. From www.crainsdetroit.com term downward economic death spi- Re: City of Detroit towing spree to stories and Reader responses ral, despite episodic bouts of “all is Something smells fishy about blogs that appeared on Crain’s ‘Fela!’ musical hits right note the coordination between the De- website. Comments may be fine” headlines from the media? troit Police Department and edited for length and clarity. One way is to measure all the new Olympia Entertainment, which bids to put up many new casinos, which are long-term economically The upcoming three-week Detroit run of the Tony conveniently benefits from banning from the business community devastating and signal an SOS on Award-winning Broadway musical “Fela!” is a big chance street parking to fill its paid parking (about a new Detroit-Windsor the economy. for the Music Hall Center for the Performing Arts to lots. bridge). Let private business build it. EconomicRealist shine. Pingree Keface One of the goals? To attract audience members who may Re: Snyder, State of the State Matty Moroun has just about Re: Science center told to liquidate have never been to a production at the historic hall. scared every one of us and has The unemployment rate (men- About time. Now how about we The hall, which typically focuses on artistic perfor- bought the rest (particularly the tioned in the State of the State ad- get real about the Detroit Zoo that Republican Legislature). … Con- mances that never cross over to Broadway, is pulling out all dress) is calculated on the number consumes $50 in taxes per patron. gratulations to the governor for the stops for the production, as Sherri Welch reports on of people receiving claims. How … Next stop, the People Mover his courage. many have exhausted their benefits, that charges 75 cents to users but Page 1. Jesse Goodwin With financial support from African-American business thereby dropping the reported un- requires $10 in tax dollars per employment rate from 11.1 percent rider. leaders and help from cultural and media outlets, the musi- to 9.3 percent? Don’t get too excit- Re: Another broker leaves Grubb & Ellis webspin cal has the potential to help put Music Hall on the map. ed, Rick. It is a shame to see this once Another goal? Diversity Education 101. The Truth strong firm slowly sinking. There has Re: Pugh won’t run for council “Our mission is for you to see something you haven’t to be a company out there that Since Charles Pugh cannot so- Yes, an emergency manager (for could be strengthened by combin- seen before, to mix with other demographics so you get to lidify council into a proactive and Highland Park Schools) is an ex- ing two firms. You can’t blame know each other,” said President and Artistic Director Vin- cohesive unit that will accept that treme step, but so is sacrificing a people for not wanting to hang Detroit is in serious trouble and cent Paul. generation of kids because someone around and see what happens. therefore take constructive ac- We’re not naive enough to think one musical can put is too proud to ask for help or too Compass Commercial much of a dent in the region’s troubles when it comes to greedy to change a system that tion to save the city from bank- ruptcy, it is scary to think that he race relations and sophisticated views on diversity, but this works in their favor. Timothy Dinan Re: Tribe plans Lansing casino would seriously consider another musical production — and all the hard work behind getting How can you tell that the state political career. it here — is something worth celebrating. I think you have the answer you live in is an unbreakable, long- David Ameel KEITH CRAIN: A chance for some fundamental change

My guess is that few if any of the will have to be residents. when you have a repre- ing the will of the people simply This is going to change the en- elected members of the Detroit City I am sure that it’s going sentative who is closer because they were too far removed tire complexion of the council, and Council are too happy about the to create quite a bit of to his or her voters. from their constituents. Repre- it will be a fascinating time as far changes that await them this fall. chaos on the part of ex- This change is long senting all of the citizens gave the as the campaigning and the elec- The elections for City Council isting members who are overdue and should be members of Detroit’s City Council tion this fall. this year will be a combination of jockeying for the right positively anticipated by the ability to be less than respon- I don’t have a crystal ball to try district and at-large, with seven of districts or where there the citizens of Detroit. sive to their own voters and they and guess what’s going to happen the nine members of the City is already more than one There are quite a few tended to march to their own agen- — although one member of the De- Council elected in newly formed member of council liv- who disagree that this is da rather than their constituents. troit City Council has already an- geographic districts in Detroit ing in that district. going to be a good thing It will be very interesting to nounced that he isn’t going to run roughly based on population. Chicago and New for the citizens, but I be- watch the council handle the cre- for re-election. Two members will still be elect- York, to name only two, lieve that this is a very ation of seven districts in Detroit. It looks like it’s going to be as in- ed by a citywide election. have had a City Council represent- exciting and, more importantly, Council members must make the teresting on a local level as the race The process is in the midst of ed by districts forever, and the sys- positive step for the city of Detroit. final approval, and it is bound to for president of the United States. carving up the city into seven dis- tem seems to be far more respon- For far too long, the City Coun- create some tension among the I sure hope everyone likes poli- tricts where the elected officials sive to the needs of the voters cil has had a tough time represent- members. tics. 20120130-NEWS--0009-NAT-CCI-CD_-- 1/27/2012 11:08 AM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Fiduciary duty gets kicked down road

In law school, my busi- connection with one who tered investment advisers and cer- best. This can arise in the recom- the House Financial Services Capi- ness transactions profes- is acting as a trustee or an tain “fee only” advisers are fidu- mendation of “house” or “propri- tal Markets Subcommittee, she re- sor said: “If you want to agent for a principal. For ciaries, required to give indepen- etary” mutual funds or annuities. ported that the implementation of scare the hell out of your example, a guardian hold- dent advice and recommend only The representative often receives the fiduciary standard was being opponent, accuse him of ing money that belongs to investments that are in the client’s higher compensation when selling delayed pending further cost-bene- being a fiduciary.” a minor child is a fiducia- best interest — regardless of their the house product. fit analysis and a public comment In July 2010 Congress ry and must always act in own compensation. When will fiduciary duty be the period. These activities could easi- passed the Dodd-Frank the best interest of the Most wire house brokers and in- law of the financial land? No time ly last through all of 2012 and into Wall Street Reform Act, child and must put the surance and annuity professionals soon. the next presidential term. which permits the Securi- child’s interest above his are only obligated to recommend Last year the SEC issued a re- If a Republican occupies the ties and Exchange Com- own. Fiduciaries have to investment products suitable to port recommending a universal White House next year, it’s unlike- mission to impose a fidu- Michael Einheuser be free of any conflicts of the client after consideration of fiduciary duty standard. The Re- ly any fiduciary rule will be im- ciary duty on stockbrokers and interest. Self-dealing, or using the the client’s investment objective, publican minority members of the posed. insurance and annuity agents. child’s funds to the guardian’s fi- risk tolerance and age. commission dissented. Now it ap- Michael Einheuser is an attorney Judging from the intensity of anti- nancial advantage would be a The difference between the two pears that SEC Chairwoman Mary in Bingham Farms and an adjunct fiduciary lobbying, it appears my breach of fiduciary duty. is subtle but important. Brokers Shapiro is kicking the can down instructor of business ethics in the professor was right. In the financial services indus- can recommend what may be tech- the road. In a Jan. 10 letter to Rep. MBA program at Wayne State Uni- The National Bureau of Labor try, there are two standards. Regis- nically “suitable” but is not the Scott Garrett, R-N.J., chairman of versity. Statistics estimates there are 5,000 securities, commodities and finan- cial service sales agents in the De- troit area. This provision of the law could be a major game changer in the way they are required to do business. Fiduciary duty usually arises in

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January 30, 2012 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Extra

Tom Henderson covers banking, finance, technology and biotechnology. Call (313) 446- 0337 or write thenderson @crain. big deals of 2011 com. Tom Henderson Numbers prove spinoffs’ worth It’s not a surprise to investors in Deals cross Arboretum Ventures LLC’s first two funds that University of Michigan spinoffs are good places to invest. Nor is it a surprise to investors in other area firms that have invested in UM startups, including EDF Ventures and Avalon Investments, Gov. Rick Snyder’s former company. There has been a series of very borders lucrative exits by UM spinoffs recently, including the sale of Accuri Cytometers Inc. for $205 million, HandyLab Inc. for $275 million and HealthMedia Inc. for about $200 million. M&A continues international affair Tim Petersen, one of Arboretum’s BY TOM HENDERSON Germany and single deals in Sweden managing directors, chortled in 2008 and China, for example a $24 million NUMBER OF DEALS that the HealthMedia deal was “a home AND DUSTIN WALSH Local deals with a value of run, a Curtis Granderson shot to deep CRAIN’S DETROIT BUSINESS acquisition in October by the Taubman at least $10 million: right field.” (Before Granderson started Centers Inc. of Bloomfield Hills for a he local world of mergers and ac- Beijing-based real estate consulting hitting on behalf of the New York 71 total Yankees.) quisitions isn’t so local after all. firm, TCBL Consulting Ltd. T The flat world of the early 21st cen- 64 total Those sales amount to anecdotal evidence. But Osage Partners, an tury has definitely arrived in South- Serious buyers investment firm based in Bala east Michigan, with cross-border 54 Cynwyd, Pa., has put numbers behind deals now almost routine. Both 2010 and 2011 show that after 44 the anecdotes. Continuing a trend begun in 2010, driving local investment bankers nuts domestic domestic deals Several years ago, Osage decided it the Crain’s list of big deals in 2011 — for years by doing a lot of due dili- deals might want to raise a fund targeting those with a deal value of gence, just to put in spinoffs at research universities, so it at least $10 million — is low-ball bids that spent a year crunching the numbers at peppered with foreign Indian and went nowhere, for- companies buying their eign buyers, particu- 45 research schools in the U.S. to “ 20 17 see what the rate of return would have way in the U.S. Chinese larly Indian and Chi- international international been had Osage invested in each market and nese buyers, have deals deals investment round of each company. Southeast Michi- companies gotten serious about 2010 2011 Based on strong returns, according to gan companies, dealmaking, advisers managing partner Marc Singer, Osage and growing their have built say. raised $100 million for its Osage footprints inter- “Before, there was VALUE OF DEALS University Partners LP, which will invest nationally. up their a lot more tire-kick- $19.3B total in spinoffs at eight top research Another trend ing and a lot less $18.1B total universities: UM; the California Institute balance from 2010 that dealmaking. But In- $4.3B in of Technology; Columbia University; the continued dian and Chinese domestic deals $10B in University of Florida; Duke University; the sheets, and throughout 2011? companies have built domestic deals University of Pennsylvania; and the More deals for up their balance University of California, Berkeley and more money. they have a sheets, and they have another that Singer said he is prohibited The bottom of the M&A lot more money to a lot more money to from naming. Singer declined to provide market, which hit with a spend now,” said $13.8B in ROI numbers or to rank the schools, but loud thud in 2009, seems Scott Eisenberg, international he said he wouldn’t dispute a claim by a spend. $9.3B in like a distant memory. managing partner at deals UM source that the school’s spinoffs ” international There were 71 M&A had a rate of return 50 percent above Scott Eisenberg, Birmingham-based deals deals of at least $10 mil- Amherst Partners LLC the average of the top eight. Amherst Partners LLC . lion last year involving And look for an Osage and UM have signed a Southeast Michigan companies, for a even more robust M&A market this contract allowing it an early crack at 2010 2011 investing in UM spinoffs. In return, the total deal value of $19.3 billion. That year, said Cliff Roesler, managing school will share in profits not only compares with 64 deals in 2010 for partner of Birmingham-based Angle from its spinoffs but from investments $18.1 billion, and a paltry total of just Advisors-Investment Banking LLC, which Osage makes in other institutions, too. 46 deals for $80.9 billion in 2009. The was an adviser in the $10 million-plus CRAIN’S LISTS OF DEALS In November, Osage announced its deal total in 2009 was the smallest sale of Bloomfield Biggest M&A deals, ranked by value first local deal, joining with Arboretum yearly total since Crain’s started Hills-based MCM of transaction: Pages 14, 16, 17 in an investment of $4.5 million in tracking them in 1996, although, Rigging Services LLC Local real estate sales: Page 18 medical device maker Tangent Medical thanks to $68 billion in federal bailout by Atlanta-based Industrial leases, Page 20 Technologies Inc. money, the dollar volume that year Source Capital LLC. Office leases, Page 21 Based on Osage numbers, UM was an all-time high. “You’ll see a lot President Mary Sue Coleman Seventeen of the 71 deals from 2011 more get done in announced in October that the school involved cross-border M&A, including 2012. A lot more,” PLASTICS COOL SLIGHTLY would invest up to $25 million from its the largest deal, four of the top eight, said Roesler, who Pace of M&A slows but stays strong, $7.8 billion endowment over the next and eight of the top 20. said a key driver Page 13 10 years in its own spinoffs. Foreign buyers last year came from will be a lessening Roesler Twelve percent of the endowment is Canada, Brazil, Italy, Finland, India, of fears that eco- invested in venture capital — forward the British Virgin Islands, Switzer- nomic troubles in Greece and the OF STUDENTS AND SALES thinking, but not forward enough for land, Taiwan, Korea, South Africa, euro zone will lead to a double-dip re- University of Michigan’s hometown local VCs, who have never received a Japan and Australia. cession. sees big deals on apartment penny from the endowment. Not even And local companies extended their complexes, Page 19 Arboretum, which fruitlessly invited the footprints by making three deals in See Deals, Page 12 endowment to join its third fund. Previous investors happily re-upped, and the fund closed at $140 million. ISTOCKPHOTO.COM 20120130-NEWS--0012-NAT-CCI-CD_-- 1/27/2012 12:08 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 30, 2012 Finance Extra: Big Deals of 2011 Deals: Mergers and acquisitions keep international flavor ■ From Page 11 While the pace of M&A activity the $521 million acquisition of the For example, Northville-based picked up in 2011 compared to C. Rob. Hammerstein Group of Ger- supplier Amerigon Inc. expanded 2010, he said it would have been In 2010, if I were a business many by Johnson Controls Inc. its heated-seat business by ac- far more brisk if lenders hadn’t “ In 2010, 20 of the 64 deals in- quiring German supplier WET Au- turned cautious in the waning owner, I was scared to death. In volved cross-border dealmaking tomotive Systems AG for $212.9 mil- months of the year because of for a total of $13.8 billion, buoyed lion. worries over Europe, and if some 2011, I wasn’t so scared. It’s by a slew of big auto-related Lars Leudeman, director of au- would-be buyers and sellers de- deals, including the $3.5 billion tomotive analytics for Grant cided to put their M&A plans on time to get off the dime. acquisition of AmeriCredit Corp. of Thornton LLP’s Southfield office, hold. ” Fort Worth, Texas, by General Mo- said the consolidation of Eu- David Brophy, University of Michigan “Things will start out slowly in tors Co., and the $1.5 billion acqui- rope’s supply base will continue 2012 and then pick up, as we all sition of the Volvo unit of Ford Mo- in 2012. seem to be getting over our wor- Have cash, seek tech ing at the bottom of the market in tor Co. by the Zhejiang Geely “Some of the larger (North ries about Europe,” he said. 2009 and 2010. Holding Group of China. American) suppliers with good “Things have already really Roesler, Eisenberg and other “There are plenty of private Twelve of the 20 largest deals in balance sheets are going to make heated up,” said Eisenberg. local experts on M&A say other company owners who don’t have 2010 involved automakers or sup- deals they can easily assimilate factors that will drive activity in “We’ve already had four or five the stomach to go through anoth- pliers. Similarly, eight of the top into their business portfolio,” he 2012 include: new assignments. er recession,” said Roesler. 17 in 2011 were auto-related. said. “The deal flow will certainly Foreign companies with The cross-border deals in 2011 “As (automakers) continue to accelerate this year.” “Owners woke up on Jan. 1 and strong balance sheets that want with a Southeast Michigan con- make their portfolios global, the Brophy said the increase in ac- said, ‘I hit my numbers for 2011; to enter the big U.S. market. nection totaled $9.3 billion, the supply base is moving to support tive and completed deals as op- 2009 is ancient history, let’s go to Owners worried that capital largest being the $6.3 billion ac- those programs,” said Bill posed to tire-kicking is notice- market now.’ ” gains rates might be higher in quisition of Farmington Hills- Wildern, CEO of Farmington able, especially on deals that There is an increased confi- 2013, so they should sell now. based Chrysler Financial Corp. by Hills-based business advisory involve foreign investors. dence on the part of buyers that is Foreign auto suppliers who the Toronto-Dominion Bank, which firm Hydra Professionals LLC. “All they were doing is sitting palpable, experts say. want to buy technology instead of closed in April. “This is not a flash in the pan; there and taking notes and then “In 2010, if I were a business reinventing it. “Western technol- The fourth-largest deal was the this type of activity is here to bowing their heads and leaving,” owner, I was scared to death. In ogy remains the best technology $725 million acquisition of stay.” said Brophy. 2011, I wasn’t so scared. It’s time on the planet,” said Roesler. Northville Township-based Hayes And then, last year, they start- to get off the dime. I’ve been sav- The U.S. dollar is relatively Lemmerz International Inc. by Ioch- ed writing checks, or getting ing my money, and now’s the cheap compared to foreign cur- pe-Maxion SA of Brazil; fifth- Detroit investment overseas their lenders to write them. time to spend it,” said David Bro- rencies, making the cost of doing largest was the $625 million spent While the bigger auto deals Tom Henderson: (313) 446-0337, phy, director of the Center for business here cheaper, too, for by Fiat SpA of Italy to acquire the were inbound, Southeast Michi- [email protected]. Twitter: Venture Capital and Private Eq- foreign buyers. U.S. Treasury’s 6 percent stake in gan suppliers went on a buying @tomhenderson2 uity Finance at the University of Ongoing pent-up demand Chrysler Group LLC and the Cana- spree in Europe, too, as its mar- Dustin Walsh: (313) 446-6042, Michigan’s Ross School of Busi- from buyers with cash and from dian government’s 1.5 percent ket turmoil translated into deals [email protected]. Twitter: ness. business owners who held off sell- stake; with the eighth-largest deal for those willing to spend. @dustinpwalsh

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5HILQDQFHDQG5HVWUXFWXUH RNHHIHDQGDVVRFLDWHVFRP IRU*URFHU\6WRUH&KDLQ 7HUP/RDQ 0LOOLRQ5HVWUXFWXUH 'HWURLW_&KLFDJR_*UDQG5DSLGV_1DSOHV 20120130-NEWS--0013-NAT-CCI-CD_-- 1/27/2012 11:18 AM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra: Big Deals of 2011 Pace of M&A deals in plastics industries slows, but still strong

BY FRANK ESPOSITO saw the greatest decline, with 17 2010 and 2011, according to P&M. CRAIN NEWS SERVICE fewer deals, for a 45 percent drop. Private buyers saw an almost iden- The positive (M&A) trend for most of In sectors, sheet and thermo- tical decline in participation, slid- The plastics mergers and acqui- “ forming produced seven more ing to 25 percent from 31 percent. sitions market cooled off in 2011 af- (2011) continued in spite of slow economic deals in 2011, for growth of 35 per- And with the global economy ter a red-hot 2010, but the market cent. Specialty processing deals improving, the market share occu- still has plenty of momentum as it growth. fell by 24, or 44 percent. pied by distressed deals fell to heads into 2012. ” Building products was the 3 percent from 6 percent in the The number of global plastics John Chrysikopoulos, Mesirow Financial Inc. fastest-growing product segment same comparison. M&A deals fell about 10 percent to “The positive (M&A) trend for 353 during 2011, according to finan- “For 2012, we expect to see deal record level of 2010.” in 2011, with seven additional most of (2011) continued in spite of cial firm P&M Corporate Finance LLC activity continue at the levels we P&M’s statistics look at plastics deals for growth of 26 percent. The of Southfield. But that total still saw in the second half of 2011,” deal volume by end market, sector resin segment saw the steepest slow economic growth,” said John ranks second among totals from said John Hart, P&M plastics and and product segment. The best- drop, by 19 deals or 36 percent. Chrysikopoulos, a managing di- the past seven years. packaging group director. “We performing end market for 2011 Private equity firms increased rector with Mesirow Financial Inc. in Tracking slightly different data, should still see deal volume of 300- was consumer, which grew by 20 their market share of done deals to Chicago. other firms had mixed views of plus (for 2012), but not at the deals, or 38 percent. Medical deals 32 percent from 27 percent between From Plastics News 2011. Officials with Blaige & Co. and Stout Risius Ross Inc., both of Chica- go, said 2011 was flat vs. the prior year, while officials with Polymer Transaction Advisors Inc. in New- The Value of Trusted Legal Counsel bury, Ohio — tracking mostly U.S. These are but a few of the major deals that the law firm of Dykema helped its clients close in 2011. From Fortune 100 data — said 2011 deal volume was companies to middle-market firms, Dykema attorneys deliver comprehensive counsel, top-tier representation and up almost 9 percent vs. the prior year. PTA tracked 150 North customized solutions that help clients achieve bottom-line growth. How may we help you? American plastics deals last year. Regardless of their differences of opinion, M&A officials recently contacted by Plastics News agreed the market hasn’t run out of gas as 2012 unfolds.

Platinum Equity Cooper Standard Acquisition of Compuware Ventures ITC Holdings Corp. Bosch to buy Automotive Inc. Diversified Machine Inc. from Series A Preferred Stock and Its Affiliates Acquisition of USi, Inc. The Carlyle Group Investment in Glocal, Inc. Strategic Development Projects Warren-based March 2011 December 2011 August 2011 2011 SPX Service

BY DAVID BARKHOLZ CRAIN NEWS SERVICE

Auto dealers can expect a broader Health Alliance Plan array of repair-bay diagnostics and Michigan Finance Authority of Michigan Libbey Glass Inc. services from Bosch Group after the $3 Billion+ Variable Rate Acquisition of Sale of Traex Subsidiary to German company said last week it Revenue Bonds Midwest Health Plan, Inc. The Vollrath Company, LLC would purchase Warren-based SPX Service Solutions from SPX Corp. December 2011 November 2011 April 2011 Both Bosch and SPX produce di- agnostic equipment that locates electrical and mechanical prob- lems throughout vehicles. Bosch and SPX sell the aftermarket equipment and services to auto dealers and independent repair shops, said Chandra Lewis, a spokeswoman for Bosch’s U.S. sub- sidiary, Robert Bosch LLC. KONE Inc. Complete Infusion Compuware Corporation Bosch agreed to pay cash for the Acquisition of Long Elevator Services, LLC Acquisition of SPX unit in the deal valued at & Machine, Co., Inc. Sale to Lincare, Inc. dynaTrace Software, Inc. $1.15 billion. The deal is expected to be completed in the first half of 2012, July 2011 April 2011 July 2011 subject to approval by regulators. The SPX diagnostic unit is espe- cially strong in North America, with $500 million of its $920 million in sales in 2011 coming from the Americas, Lewis said. Bosch has its biggest presence in diagnostic tools and services in Eu- rope, though both Bosch and SPX Detroit Regional Convention Michigan State Beaumont Hospitals sell their products globally, she said. Facilities Authority Building Authority Five-Year Revenue Bosch markets its equipment $315 Million Special Tax $645 Million+ Revenue and Cycle Outsourcing with under the Bosch brand. SPX sells Revenue Bonds Revenue Refunding Bonds Accretive Health its equipment predominantly un- November 2011 July 2011 July 2011 der the SPX brand to factory deal- ers while it uses a variety of brand names when selling to the inde- pendents, including OTC, Robi- nair and Actronall. www.dykema.com/corporate SPX, of Charlotte, N.C., said the sale would help it focus on its other Michigan | California | Illinois | North Carolina | Texas | Washington, D.C. lines of business, such as beverage © 2012 Dykema Gossett PLLC Attorney Advertising and food processing, along with power transformers for utilities. From Automotive News 20120130-NEWS--0014-NAT-CCI-CD_-- 1/27/2012 11:39 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 30, 2012 Finance Extra: Big Deals of 2011 CRAIN'S LIST: MERGERS & ACQUISITIONS

Value of Annual Date transaction Rank Acquirer name Target Acquirer advisers Target advisers revenue effective Description ($000,000) Toronto-Dominion Bank, Toronto Chrysler Financial Corp., Simpson Thacher/Torys; Schulte Roth April Cerberus Capital Management bought Chrysler Financial for $6,300.0 1. Farmington Hills Citi/JP Morgan $7.4 billion in 2007

Delphi Automotive LLP, Troy Reacquired equity stake in March Bought with cash and a credit facility from J.P. Morgan Chase $3,800.0 2. Delphi from General Motors Co. ITC Holdings Corp., Novi Electric transmission J.P. Morgan; Barclays Goldman Sachs; Skadden, Projected Expected Following completion of the transaction, ITC is expected to be the $1,775.0 business, Entergy Corp., Capital; Simpson Thacher Arps, Slate, Meagher & Flom 2013 rate in 2013 largest electric transmission company in the U.S., with more than 3. New Orleans & Bartlett LLP LLP; Cooley LLP. base: 30,000 miles of transmission lines, spanning 12 states from the Great $3 billion Lakes to the Gulf Coast Iochpe-Mexion SA, Brazil Hayes Lemmerz Proskauer Rose Skadden Arps December Purchase price includes $23 milllion in debt. Hayes Lemmerz is the $725.0 4. International Inc., Northville world's largest wheel maker Township Fiat S.p.A., Turin, Italy Stake in Chrysler Group July Bought U.S. Treasury's remaining 6 percent ownership for $600 $625.0 million and the Canadian government's 1.5 percent share for $125 5. million. Not included in value of transaction is $75 million for assignment of Treasury's rights under the Equity Recapture Program Delphi Automotive LLP, Troy Reacquired equity stake in March Bought with cash and a credit facility from J.P. Morgan Chase $594.0 6. Delphi from Pension Benefit Guaranty Corp. Trinity Health, Novi Loyola University Health Bank of America Merrill Ernst & Young; KPMG $1.1 billion June Transaction included $175 million in cash and assumption of $525.0 7. System, Chicago Lynch; Foley & Lardner $350 million in debt. Trinity also will pay a $22.5 million annual subsidy to Loyola University's medical school Johnson Controls Inc., Milwaukee C. Rob. Hammerstein January Acquired on behalf of JCI-Automotive Experience, Plymouth. $521.0 8. Group, Solingen, Germany 2011 Expands the company's expertise in metal seats and helps it expand into premium vehicle segments. Talmer Bancorp Inc., Troy Community Central Bank Nelson Mullin Riley and April Troy-based Talmer bought assets when FDIC shut down $476.3 9. Scarborough LLP Mt. Clemens-based bank

Talmer Bancorp Inc., Troy Peoples State Bank Nelson Mullin Riley and February Troy-based bank bought assets when FDIC shut down Madison $390.5 10. Scarborough LLP Heights-based bank.

Tom Gores, Platinum Equity LLC, Palace Sports and Goldman Sachs, SCP Citi Private Bank Sports $220 June Platinum Equity owner Tom Gores bought the majority of the team $325.0 Beverly Hills, Calif. Entertainment LLC, Detroit Worldwide Advisory; Williams, million and PS&E with his own money, but there is minority investment by Pistons Williams, Rattner & Plunkett Platinum Equity Capital Partners II 11. PC; Honigman Miller Schwartz and Cohn LLP; Katten Muchin Rosenman LLP Fairfax Financial Holdings Ltd., First Mercury Financial Shearman Sterling Bank of America; Merrill February $16.50 per share $298.8 12. Toronto Corp., Southfield Lynch; McDermott Will; Simpson Thacher Compuware Corp., Detroit DynaTrace Software Inc., Dykema Gossett Pacific Crest; DLA Piper; $26 million July Acquired company helps companies manage the performance of $256.0 13. Waltham, Mass. Ropes & Gray software. Company was VC-backed by Bain Capital and Bay Partners

Platinum Equity LLC, Beverly Hills, Diversified Machine Inc., $450 October Bought from the Carlyle Group. Company sought $235 million in $235.0 14. Calif. Howell million loans to back the purchase, $175 million loan and $60 million in an asset-based revolving line of credit. Value is set at the loans' total BorgWarner, Auburn Hills Traction Systems division of January Acquired company has production facilities in Sweden, Mexico and $205.0 15. Haldex Group, Stockholm, 2011 Hungary. Sweden Becton, Dickinson & Co., New Accuri Cytometers Inc., Ann Jaffe Raitt, Jefferies & Co. March Maker of device to automate cell analysis for researchers was sold by $205.0 15. Jersey Arbor its venture capital investors, including Ann Arbor-based Arboretum Ventures and InvestMichigan fund managed by Credit Suisse PKC Group OYJ, Oulu, Finland AEES Inc., Farmington Hills Borenius & Kempp September Acquired from Los Angeles-based private equity firm Platinum Equity, $180.4 17. minority owner of the Detroit Pistons

Audax Group, Boston; Moelis Quest Specialty Chemicals, Kirkland & Ellis Honigman Miller; Crowe >$100 March Sold by Huron Capital Partners, Detroit. Price estimated at more than $150.0 18. Capital Partners, New York Menomonee Falls, Wisc. Horwath million $150 million. Return of 4.1 times investment

Amerigon Inc., Northville W.E.T. Automotive Systems $311 May Bought 76.2 percent of voting shares for 40 euros each $138.0 19. AG, Odelzhausen, Germany million

Platinum Equity LLC, Beverly Hills, Active Aero Group Inc., $175 May Bought from Berkshire Partners LLC, Greenbriar Equity Group LLC. $100.0 20. Calif. Belleville million Value is estimated at $100 million; Berkshire and Greenbriar were estimated to have paid for a 50 percent share in 2000. Rockbridge Growth Equity LLC, Purchasing Power LLC, Honigman Miller; FTI Stephens Inc.; Morris, $190 October Purchased company provides e-commerce platforms to a range of $100.0 20. Detroit; Falcon Investments LLC, Atlanta Consulting Manning & Marting million customers, including Fortune 500 companies and government Boston agencies. Value is estimated at $100 million Henry Ford Health System, Detroit Midwest Health Plan Inc., Cain Brothers & Co. LLC Internal $250 November Health Alliance Plan acquired Midwest Health Plan, a for-profit $70.0 Dearborn million Medicaid HMO with 74,000 members, to allow the HMO to expand 22. into the growing Medicaid managed care market. Midwest President Mark Saffer will continue in his same role with HAP Auto Club Insurance Association, Fremont Michigan Locke Lord Philo Smith Capital; Foster $68.9 August The proposed purchase price of $36.15 per share represents about $67.1 23. Dearborn InsuraCorp Inc., Fremont Swift; Honigman Miller million 35 percent more than the $26.75 closing price of Freemont before the sale. It also equals about 1.4 times the book value of Fremont First Financial Bancorp Inc., 22 Flagstar Bank branches in Kutal Rock LLP December Flagstar sold off $462 million in assets as part of strategy to $57.5 24. Cincinnati Indiana concentrate on Michigan market

Sun Pharmaceutical Industries Remaining 24.2 percent Shearman & Sterling LLP, William Blair; Carrington $293 June Transaction value is based on $5.25 a share. Effect would be to take $50.9 Ltd., Mumbai, India; Sun Pharma share in Caraco New York City Coleman million FY the company private. Final sale value at $50.9 million Global Inc., Road Town, British Pharmaceutical 2012. Zero Virgin Islands Laboratories, Detroit revenue in 25. new products since 2009 when FDA closed plant Compatriot Capital Inc., Dallas Village Green, Farmington December Bought 50 percent stake held by Ronald Benach and Wayne Moretti $50.0 Hills of Chicago since 1995. Value is estimated at the equity Compatriot 26. will contribute to develop $250 million worth of apartments over 24 to 36 months. An additional investment in the Village Green management company was not disclosed Georg Fischer AG, Schaffhausen, Harvel Plastics Inc., Clark Hill plc, Detroit; $58.4 January Larger of Kaydon's two subsidiaries, Harvel is to be integrated into $50.0+ 26. Switzerland Pennsylvania, subsidary of Lincoln International, million 2012 Fischer's GF Piping Systems division and leaves one Detrex Detrex Corp., Southfield Chicago subsidiary, Elro Corp. Huron Capital Partners, Detroit Hughes Associates, Honigman Miller; Plante David Seidel >$50 May Provider of fire protection engineering services bought as platform $50.0+ 26. Baltimore Moran million company. Purchase price estimated at over $50 million

Keolis America, Rockville, Md. Tectrans Inc., Los Angeles DLA Piper; Lincoln Honigman Miller >$50 November Sold by Huron Capital Partners, Detroit. Price estimated at more than $50.0+ 26. International million $50 million

Source: Company submissions, Crain's research and Bloomberg News. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. The list does not include all 2011 transactions; only transactions valued at $10 million or more are included. Continued on Page 16 DBpageAD.qxp 1/20/2012 10:36 AM Page 1

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Page 16 CRAIN’S DETROIT BUSINESS January 30, 2012 Finance Extra: Big Deals of 2011 CRAIN'S LIST: MERGERS & ACQUISITIONS

Continued from Page 14 Value of Annual Date transaction Rank Acquirer name Target Acquirer advisers Target advisers revenue effective Description ($000,000) HTC Corp., Taiwan Saffron Digital, London, February Saffron offers global delivery platform and other services to customers $47.0 portfolio company of who include Nokia, Sony Pictures, NBC Universal and Paramount 30. Beringea LLC, Farmington Hills PNC Financial Services Group, 27 Flagstar Bank branches Wachtell Lipton Rosen & Kutak Rock LLP; FIG December Flagstar sold off $210 million in deposits as part of strategy to $42.0 31. Pittsburgh in Atlanta area Katz Partners LLC concentrate on Michigan market

Compass Venture Partners LP, Dantom Systems Inc., Sidley Austin LLP William Blair & Co. LLC; October Sold by Swedish equity firm JZ Capital Partners, Chicago-based Bain $40.5 32. Palo Alto Wixom SNR Denton LLP Capital and Chicago-based The Edgewater Funds

Kaydon Corp., Ann Arbor Hahn-Gasfedern GmbH, Paul Hastings LLP $20 million April Hahn, a maker of gas springs, tension springs and dampers, is $40.0 33. Germany absorbed into ACE Controls Inc. within Kaydon's Velocity Control Products segment Arch Global Precision LLC Hi-Vol Products LLC, Jaffe Raitt Heuer & Weiss Seneca Partners $46 million December TriMas sold assets of two Michigan companies to an LLC formed by $38.6 (Strength Capital Partners, Livonia, and Precision Tool PC Strength Capital to shed the precision tool cutting and specialty Birmingham) Co. Inc., Warren and fittings businesses in TriMas' Engineered Components division 34. Massachusetts (units of TriMas Corp., Bloomfield Hills) Penske Automotive Group Inc., Mercedes-Benz of $150 July Value is estimated $36.0 35. Bloomfield Hills Greenwich (Conn.) million

LS Mtron Ltd., Korea Delphi Automotive Group's Yoon & Yang January $35.0 36. 49.5 percent stake in 2011 Daesung Electric Co. DataTec Ltd., Sandown, South Netarx LLC, Auburn Hills Jefferies International Ltd. $60 million July Netarx has 229 employees and offices in Ohio, Indiana and Arizona $34.0 37. Africa

Mitsuchi Corp., Tokyo TRW Automotive Japan Co. Frontier Management Inc. December Following acquisition, the business was renamed Mitsuchi Kasugai $32.7 38. Ltd.'s cold heading business Co. Ltd.

Versa Capital Management LLC, American Laser Centers LLC, Kroll Zolfo; Landis Rath Pending The company filed for Chapter 11 to facilitate the sale, listing assets $30.0 39. Philadelphia Farmington Hills of $80.4 million and $105 million in unsecured debt according to a Bloomberg report Tower International Inc., Livonia Substantially all assets, Foley & Lardner LLP Carson Fisher, Donnelly $65 million April Debt equity transaction, based on accumulated mature loans for $28.6 W Industries, Detroit Penman & Partners, Abbott equipment purchase and expansion costs owed to repay J.P. Morgan 40. Nicholson Quilter Esshaki & Chase. Value is estimated Youngblood PC Solar Acquisition Corp., Ann Arbor Clean Power Inc., January Solar Acquisition issued 5.45 million shares of its stock, worth $27.3 41. Wauwatosa, Wis. 2011 $27.3 million, toward the acquisition

Trimas Corp., Bloomfield Hills Innovative Molding, $28 million August Innovative Molding to be integrated into Auburn, Ind.-based Rieke $27.0 Sebastopol, Calif. (later Packaging Systems, a 90-year-old company within TriMas Corp.'s 42. relocated to Rohnert Park, packaging division Calif.) Talmer Bancorp Inc., Troy Lake Shore Wisconsin Corp., Nelson Mullin Riley and December Acquired in exchange for stock $26.0 43. Sheboygan Scarborough LLP

Huron Capital Partners, Detroit Sock and Accessory Brands Honigman Miller; Crowe McKenna, Long & Aldridge >$25 November Designer, importer and distributor of fashion and athletic socks $25.0+ 44. Global, Mocksville, NC Horwath million bought as platform company. Price estimated at more than $25 million Huron Capital Partners, Detroit Victoria Fine Foods, Honigman Miller; Crowe Moritt, Hock <$40 February Manufacturer of specialty food products bought as platform $25.0+ 44. Brooklyn Horwath million company. Price is estimated at $25 million-plus

Huron Capital Partners, Detroit Ginny's Printing, Austin Honigman Miller; Crowe Selman, Munson & Lerner >$25 November Document processing company bought as add-on to TouchPoint $25.0+ 44. Horwath million Print Solutions Corp. Price is estimated at more than $25 million

Taubman Centers Inc., Bloomfield TCBL Consulting Ltd., October Acquired 90 percent interest in the real estate consulting company $24.0 47. Hills Beijing, China and renamed it Taubman TCBL

Peninsula Fund V LP, Detroit LA T Sportswear, Ball Dickinson Wright December Equity investment in company that designs, sources and $23.5 48. Ground, Ga. merchandises branded apparel

ProQuest LLC, Ann Arbor Ebrary, Palo Alto, Calif. Ernst & Young; Lockton Greenberg Traurig LLP $5 million January Acquired company's library of 273,000 digital books, magazines, $20.0+ 49. Cos. 2011 journals and reports from 500 publishers. Deal value is more than $20 million Altus Capital Partners Inc., Models & Tools, Shelby Foley & Lardner LLP $35 million November Altus acquires majority stake. Value is estimated $20.0 49. Westport, Conn. Township

Peninsula Fund V LP, Detroit Dakota Dry Bean Inc., Dickinson Wright December Equity investment in processor of dry peas and beans $20.0 49. Grand Forks, N.D.

Peninsula Fund V LP, Detroit Kiosk Information Systems Dickinson Wright January Equity investment $19.2 52. Inc., Louisville 2011

1st Source Servall, Center Line Appliance Parts Co. Inc. of $19 million September Follows a 2010 acquisition for 1st Source in Alabama; expands the $17.5 53. Louisiana company from 43 to 51 locations

Genuine Parts Co. (Motion DP Brown of Detroit Inc., Alston & Bird LLP $27 million February Bought by Motion Industries Inc., a Birmingham, Ala., auto parts $16.5 54. Industries), Atlanta Westland distributor and subsidiary of Atlanta-based Genuine Parts (NYSE: GPC) Brambles Ltd., Sydney, Australia Container and Pooling Loeb Partners $10 million January Sold by Lazard Ltd., Bermuda $16.4 55. Solutions, Livonia 2011

Solar Acquisition Corp., Ann Arbor Solid oxide fuel cell February Solar Acquisition issued a promissory note of $3.3 million for the deal $16.3 56. technology from Nano CP and later formed a joint venture with Watt Fuel Cell with the LLC, Fla. technology Polaris Industries Inc., Medina, Chrysler Group Global Polaris Industries Inc. W. Morgan Burns of Faegre $30 million June Value is estimated $15.0 57. Minn. Electric Motorcars LLC & Benson LLP

The Anderson Group, Bloomfield Oberfields LLC, Columbus, Buckley King; Hill, Barth & Meridian Group March Acquired company does building products manufacturing. Value is $15.0+ 57. Hills Ohio King estimated at more than $15 million

Barnes & Noble Inc., New York Intellectual property & Cravath Swaine Kasowitz, Benson, Torres & $2.8 billion September Barnes & Noble acquired customer information, Internet addresses $13.9 assets of Borders Group Inc., Friedman prior to and a range of other intellectual property assets in the liquidation of 59. Ann Arbor bankruptcy Borders Group Inc. and liquidation

Source: Company submissions, Crain's research and Bloomberg News. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. The list does not include all 2011 transactions; only transactions valued at $10 million or more are included. Continued on Page 17 20120130-NEWS--0017-NAT-CCI-CD_-- 1/27/2012 11:40 AM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 17 Finance Extra: Big Deals of 2011 CRAIN'S LIST: MERGERS & ACQUISITIONS Continued from Page 16 Value of Annual Date transaction Rank Acquirer name Target Acquirer advisers Target advisers revenue effective Description ($000,000) NSF International, Ann Arbor AQA International LLC, Seneca Partners; Honigman Internal Acquired company audits compliance with ISO and ASA industry $13.0 60. South Carolina Miller standards. Adds 17 employees and increases NSF's automotive systems registrar business. Value is estimated

Wynnchurch Capital Partners LLC, Burtek Inc., Chesterfield Winston & Strawn BBK Ltd. (receiver); Foley & $45 million Pending Agreement reached in December for Wynnchurch to acquire most $11.5 61. Rosemont Ill. Township Lardner LLP of the defense contractor's assets. Price recently reduced; deal still awaits federal court approval Peninsula Fund V LP, Detroit Equibrand Holding Corp., Dickinson Wright May Equity investment in provider of equestrian products and services $11.0 62. Granbury, Texas

Huron Capital Partners, Detroit Lot 26 Studio, San Francisco Honigman Miller; Crowe Blank Rome <$10 May Manufacturer of wall decor. Add-on to Artissimo Designs. Price is $10.0+ 63. Horwath million estimated at more than $10 million

Stork Materials Technology BV Detroit Testing Laboratory Internal Internal $20 million December Acquired company does product qualification testing. Acquisition is $10.0+ 63. (now Element Materials Inc., Warren believed to be at least $10 million Technology) Tom Celani Dick Scott Chrysler $100 October Value is estimated $10.0 63. dealerships in Plymouth and million Fowlerville

B&G Supply Co., Burton, Ohio Wetsel Inc., Harrisonburg, Internal August Sold company does land and garden products distribution. Value is $10.0+ Va., portfolio company of estimated at more than $10 million 63. The Anderson Group, Bloomfield Hills The Anderson Group, Bloomfield Cole Kepro International Dickinson Wright; Bekaert Capital City Group September Acquired company is a manufacturer of gaming cabinets. Value is $10.0+ 63. Hills LLC, Las Vegas & Holland LLP estimated at greater than $10 million

Rockbridge Growth Equity LLC, Myinsuranceexpert.com, Honigman Miller $4.6 million Web-based insurance consultancy that does comparison shopping of $10.0+ 63. Detroit Troy (projected) insurance policies. Value is estimated at more than $10 million

Waste Management Inc., Houston Waste One, Clinton Quarton Partners August Value estimated at more than $10 million $10.0+ 63. Township

MSR Industrial Services LLC, a MCM Rigging Services LLC McKenna Long & Aldridge Angle Advisors; Jaffe Raitt May Atlanta company bought Bloomfield Hills-based LLC from MCM $10.0+ 63. newly formed subsidiary of Source LLP Heuer & Weiss, PC Management Corp. and renamed it MSR Industrial Services LLC. Capital LLC More than $10 million

Source: Company submissions, Crain's research and Bloomberg News. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. The list does not include all 2011 transactions; only transactions valued at $10 million or more are included.

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Big Bucks, AMRESCO Inc. Cleveland HeartLab, Inc. MCM Capital Partners Neo Material Technologies High Tech Sale to VWR International, LLC Series B Preferred Financing Purchase of Zinkan Enterprises Purchase of Gallium Compounds

Palm Beach Pathology, P.A. Strata Pathology Services, Inc. / Sanders Tools & Supplies Winchester Laboratory Associates, P.C. Parts Associates, Inc. Sale of assets of business to Sale to BlackHawk Industrial Recapitalization with Linden American Pathology Partners, Inc. Financing Distribution, Inc. Capital Partners

StyleCraft Home Collection Techtron Systems Weldmation, Inc. – A banking and technology (A portfolio company of MCM Capital Partners) Acquisition of Real Estate and Tri-City Family Medicine / Vital Real Estate Sale of assets to blog written by Tom Henderson Senior Debt Refinancing Financing Refinancing Kramer International, Inc. with insights and news on the people and places driving these industries.

Get there at Stephen M. Gross Charles B. Zellmer crainsdetroit.com/blogs Detroit Managing Member Chair, Business Department Follow me on Twitter @tomhenderson2 McDonald Hopkins PLC, 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 www.mcdonaldhopkins.com Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach 20120130-NEWS--0018-NAT-CCI-CD_-- 1/27/2012 10:22 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 30, 2012 Finance Extra: Big Deals of 2011 CRAIN'S LIST: LOCAL SALES Ranked by price

Square feet/ Price Rank Building Buyer Seller Broker/advisers number of units ($000,000) Windemere Park Apartments, Ann Arbor The Habitat Group, Chicago Northwestern Mutual Life Insurance Co., Hendricks & Partners NA $44.3 1. Milwaukee 480 Lake Village, Ann Arbor The Habitat Group, Chicago Northwestern Mutual Life Insurance Co., HFF LLC NA $40.8 2. Milwaukee 460 3000 University Drive, Auburn Hills Shamrock Holdings Inc., Burbank Metcalf Family Trust, Lafayette Grubb & Ellis 450,000 $24.3 3. NA Woodland Mews, Ann Arbor Vesper Holdings, New York Bleznak Real Estate/Hartman & Tyner NA $20.0 4. Inc., Birmingham and Southfield 306 Chase Tower, Detroit Rock Holdings Inc., Detroit Sterling Group, Detroit Bedrock Property Management and 447,407 $16.0 5. Friedman Integrated Real Estate Solutions NA Dime Building (979 Griswold), Detroit Rock Holdings Inc., Detroit Wells Fargo Bank, San Francisco NAI Farbman; Bedrock Property 319,814 $15.4 6. Management and Friedman Integrated NA Real Estate Solutions Fountain Walk, Novi Spigel Properties, San Antonio Capmark Financial, Horsham NAI Farbman 622,731 $14.5 7. NA Portfolio Sale B, Monroe Cole Real Estate Investments, Phoenix Continental Monroe 61, LLC Marcus & Millichap 141,935 $12.9 8. NA L.A. Fitness, Royal Oak Group of Southern Calif. investors Schostak Bros., Livonia Mid-America 45,000 $12.4 9. NA The Heights, Madison Heights Stuart Frankel, Troy Kensington Realty Advisors, Chicago Hendricks & Partners NA $12.1 10. 225 Two Detroit Center Garage, Detroit Rock Holdings Inc., Detroit 160 Parking LLC, New York Friedman Integrated Real Estate Solutions NA $10.5 11. and Bedrock Management 1,100 spaces The Summit, Farmington Hills Sillman Enterprises Inc., Birmingham Charter One Bank Hendricks & Partners NA $10.3 12. 154 Willow Creek Apartments, Westland Westminster Harvest LLC, investment Blue Valley Apartments Inc., West Palm Hendricks & Partners NA $10.2 13. group registered to David Nykanen, Beach 432 Royal Oak Gratiot Avenue near I-375, Detroit Wayne County Greektown Casino-Hotel Signature Associates 7.64 acres $10.0 14. NA Heritage Town Homes, Taylor Westminster Harvest LLC, investment Blue Valley Apartments Inc., West Palm Hendricks & Partners NA $9.5 15. group registered to David Nykanen, Beach 500 Royal Oak Highline Club, Novi York Properties, Southfield Resource Real Estate, Philadelphia Hendricks & Partners NA $9.4 16. 160 Gateway Town Homes, Romulus Monarch Realty & Investments, Detroit Resource Real Estate, Philadelphia Hendricks & Partners NA $9.1 17. 344 First National Building, Detroit Rock Holdings Inc., Detroit PNC Bank Bedrock Property Management and 800,000 $8.1 18. Friedman Integrated Real Estate Solutions NA Hamptons of Brownstown, Brownstown Township Princeton Enterprises LLC, Bloomfield GE Capital Hendricks & Partners NA $6.8 19. Hills 394 322 N. Old Woodward Ave., Birmingham SAIC Property Management LLC, Thomas Real Estate Development, Grosse Signature Associates 30,712 $6.2 20. Birmingham Pointe NA Ashley Terrace, Ann Arbor Alidade Capital LLC, Bloomfield Hills Bank of America, Charlotte Signature Associates 56,863 $6.2 20. NA Kirts Office Park, Troy Ari-El Enterprises Inc., Southfield Bentall Kennedy, Toronto Sperry VanNess and Transwestern 218,723 $6.0 22. NA College Park, Detroit College Park RCO LLC, Southfield Wells Fargo Trustee NAI Farbman 175,326 $5.2 23. NA 24. Lasher Shopping Center (21851-21887 W. 11 Mile John B. and Laura K. Cauzza Kenny Hannawa, Birmingham Marcus & Millichap 28,475 $4.9 Road), Southfield NA Westland Apartment Portfolio, Westland Wildwood Ltd., Bingham Farms FH Holding, Grand Rapids Hendricks & Partners NA $4.6 25. 229 Chelsea Park Apartments, Taylor Monarch Realty & Investments, Detroit Receiver Hendricks & Partners NA $4.5 26. 160 Westminster Park, Taylor Westminster Harvest LLC, investment Blue Valley Apartments Inc., West Palm Hendricks & Partners NA $4.3 27. group registered to David Nykanen, Beach 256 Royal Oak Wellington North, Farmington Hills 30445 Northwestern Hwy Office Bldg, Comerica Bank Friedman Integrated Real Estate Solutions 106,117 $4.2 28. investment group registered to Gabriel NA Schuchman, West Bloomfield 312 S. Main St., Ann Arbor 312 SMS LLC, investment group 312 S Main St. LLC, investment group Colliers International and Madison 20,740 $3.9 29. registered to Reza Rahmani, Northville registered to Gerald Spears, Ann Arbor Property Co. NA 30893 Century Drive, Wixom Mans LLC, investment group registered to Harmon Highway Co. Inc. Signature Associates 76,000 $3.8 30. David Moellering, Wixom NA 2725 & 2805 South Industrial, Ann Arbor Oxford Companies, Ann Arbor First Industrial LP, Chicago Jones Lang LaSalle 62,333 $3.7 31. NA Eastlake Commons, Sterling Heights Eastlake Commons Associates LLC, Wells Fargo Trustee NAI Farbman 98,992 $3.6 32. investment group registered to Jerry NA Hamling, Troy 30811 Century Drive, Wixom Sunlight Supply Inc., Vancouver, Wash. RCI Properties, Wixom CBRE Group Inc. 110,000 $3.0 33. NA 46600 Port St., Plymouth Township Living Essentials LLC, Farmington Hills Berkadia Commercial Mortgage LLC, Signature Associates and NAI Farbman 134,160 $3.0 33. Horsham, Pa. NA 2910 Waterview Drive, Rochester Hills Sunlogics Michigan LLC, Southfield LNR Property Corp., Miami Beach, Fla. Signature Associates and CBRE Group 143,200 $2.9 35. Inc. NA 21 E. Long Lake Road, Bloomfield Hills 21 E. Long Lake Road Building, Flagstar Bank, Troy Friedman Integrated Real Estate Solutions 30,000 $2.8 36. investment group registered to Gabriel NA Schuchman, West Bloomfield 3050 Rochester Road, Rochester Hills Rochester Auburn Associates LLC, Viviano Land Co., Rochester Hills Signature Associates 4.41 acres $2.7 37. Bloomfield Hills NA 2965 Lapeer Road, Auburn Hills Katcon Properties LLC, Auburn Hills General Development Co., Southfield Signature Associates and Grubb & Ellis 58,140 $2.7 37. NA 1621-1663 W. Big Beaver Road, Troy Summit Property Management, Coventry Place LLC, Birmingham L. Mason Capitani 36,050 $2.7 37. Bloomfield Hills NA 2400 Green Road, Ann Arbor Hantz Real Estate Ventures LLC, DFCU Financial, Dearborn Friedman Integrated Real Estate Solutions 21,500 $2.4 40. Southfield NA 7600 Kensington Court, Green Oak Township 7600 Kensington Court LLC, Brighton M W Tolero Holding Corp. Signature Associates 72,190 $2.4 40. NA

List is based on information from CoStar Group Inc., Real Capital Analytics, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. B 2323 Telegraph Road, 2347 Telegraph Road and 2117-2143 Mall Road LIST RESEARCHED BY DANIEL DUGGAN 20120130-NEWS--0019-NAT-CCI-CD_-- 1/27/2012 10:24 AM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 19 Finance Extra: Big Deals of 2011 Student demand bolsters Ann Arbor apartment deals

BY DANIEL DUGGAN cording to information from Wash- CRAIN’S DETROIT BUSINESS ington, D.C.-based REIS Inc.; com- pared with 5.4 percent for the re- Apartment deals in Ann Arbor gion. dominated the list of local real es- That trend follows other sectors tate sales in 2011, taking three of the of real estate in metro Detroit. Ann top five spots in the Crain’s annual Arbor enjoys a vacancy rate that is list of big real estate sales deals. much lower than in other parts of In a survey of more than 100 in- the region. vestment deals over $1 million, 10 In the office sector, for example, Ann Arbor deals represented the Class A vacancy rate is 8.1 per- $125.8 million — roughly a quarter cent, compared with 16.5 percent of the total $506.8 million for metro for the region, according to data Detroit deals. from Washington, D.C.-based Investors and brokers point to CoStar Group Inc. demand for rentals from University Though the office sector hasn’t of Michigan students, which drives seen the same deal volume as a low vacancy rate. A political en- apartments, there is still a lot of in- vironment that makes it hard for terest from investors, said Neal new development to take place Warling, a senior vice president in also limits competition for new in- the Ann Arbor office of Jones Lang vestors, brokers say. LaSalle. “In the last 24 months, rentals “Maybe once a week, a property have become a lot more attrac- in Ann Arbor comes up on the tive,” said Mitchell Bleznak, a radar screen for someone on one of Birmingham-based investor. “The the coasts, where most other number of renters has been grow- Michigan cities don’t,” he said. ing, so you have more customers, In general, he said, investors and with more customers you can like the stability of the overall capture higher rents.” market that stems from UM. Bleznak was involved in one of “For a market that is largely the larger Ann Arbor deals, selling considered a tertiary market, it’s the Woodland Mews rental com- viewed as a stable investment, es- plex to New York-based Vesper pecially multifamily,” Warling Holdings for $20 million in August. said. It came on the heels of Bleznak Likewise, when Eric Taylor lists buying the property for $11.4 mil- an Ann Arbor apartment, there’s lion with several other investors an immediate response. in December. “There’s almost always a re- Leading the list of deals for 2011 sponse from the institutional in- were two Ann Arbor deals: Chica- vestors,” said Taylor, a senior in- go-based investment firm The Habi- vestment adviser with Hendricks & tat Co. bought the 360-unit Lake Partners Inc., part of the team that Village of Ann Arbor Apartments sold Windemere Apartments for and the 480-unit Windemere Park $44.2 million. Apartments, for a total of $85 mil- But then, aside from the invest- lion. ment fundamentals of the univer- In addition to a large sale figure, sity, Taylor sees another benefit. the deal also represents interest “Almost every institutional in- Working Capital from outside of metro Detroit, con- vestor has a U of M grad at the IN ACTION sidered a positive sign for the in- firm,” he joked. “And the UM guys vestment market. have a soft spot for Ann Arbor.” The vacancy rate for apartments Daniel Duggan: (313) 446-0414, in Ann Arbor was 3.6 percent at [email protected]. Twitter: the end of the third quarter, ac- @d_duggan

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Page 20 CRAIN’S DETROIT BUSINESS January 30, 2012 Finance Extra: Big Deals of 2011 CRAIN'S LIST: INDUSTRIAL LEASES Ranked by square feet

Square Rank Building Owner, owner city Tenant Brokers feet 28201 Van Dyke Ave., Warren B Investment group U.S. Manufacturing Signature Associates 625,000 1. registered to Larry Walakiewicz, Southfield 2. Brownstown Business Center, Ashley Capital LLC, Cabot Street Real Estate Grubb & Ellis and Signature 466,011 Brownstown Township Canton Township LLC Associates 3. Brownstown Business Center, Ashley Capital LLC, GM Subsystems None 408,468 Brownstown Township B Canton Township Manufacturing LLC 4. Brownstown Business Center, Ashley Capital LLC, MTU Detroit Diesel Grubb & Ellis 395,270 Brownstown Township Canton Township 5. Plymouth Road Technical Ashley Capital LLC, NYX Inc. None 324,489 Center, Livonia C Canton Township 6. Brownstown Business Center, Ashley Capital LLC, C-Mac Transportation Colliers International 286,784 Brownstown Township D Canton Township LLC 10049 Harrison Road, Romulus Nemer Property Group, CEVA Freight Colliers International and 225,000 7. Southfield CBRE Group Inc. Parkridge Industrial Park, White Lynn Properties CAD Engineering Grubb & Ellis 211,610 8. Sterling Heights LLC, Grosse Pointe Resources Woods 9. Plymouth Road Technical Ashley Capital LLC, Roush Enterprises Inc. None 206,252 Center, Livonia B Canton Township 4425 Purks, Auburn Hills Bank of America, ALTe NAI Farbman 183,919 10. Charlotte Canton Business Park, Canton Tianz Inc., Canton Grupo Antolin Primera Grubb & Ellis 165,470 11. Township Township Automotive Systems, LLC 12. Crossroads Distribution Center, Ashley Capital LLC, Exel Inc. Grubb & Ellis 159,504 Belleville B Canton Township 5425 Dixie Highway, Bridgeport Liberty Bankers Life Ins., Hausbeck Pickle Co CBRE Group Inc. 150,000 13. Springfield, IL. 38150 Plymouth Road, Livonia Phoenix Asset Helm Inc. Signature Associates 140,074 Management, 14. investment group registed to Abraham Levine, Shelby Township 15. Plymouth Road Technical Ashley Capital LLC, Packaging Corp. of Colliers International and 139,314 Center, Livonia Canton Township America Signature Associates 1515 Newburgh Road, Westland Technicolor CEVA Logistics Colliers International and 137,740 16. Videocassette, Eaton CBRE Group Inc. Rapids 4872 Lapeer Road, Orion Township First Industrial Realty U.S. Farathane Corp. Signature Associates and 125,605 17. Trust, Chicago Colliers International 18. 14835 Pilot, Plymouth Township B Amson Dembs, Novi McLane Foodservice Signature Associates 125,214 19. 44831 N. Groesbeck Highway, Osprey Management Sequoia Tool Grubb & Ellis 123,814 NINE EXCITING INNINGS Clinton Township Co., Brighton 10401 Harrison Road, Romulus B Nemer Property Group, Schenker Inc. Colliers International and 120,000 NINE EXCITING REASONS TO ORDER 20. Southfield CBRE Group Inc. 12755 E Nine Mile Road, Warren Universal Truckload SMW Automotive Corp. Grubb & Ellis 116,360 2012 TIGERS SEASON TICKETS 21. Services Inc., Warren 29700 Commerce Blvd., Unova Inc., Warren Advanced Integrated Signature Associates and CBRE 115,539 22. Toolings Solutions Group Inc. Justin Verlander – AL MVP and 2011 Cy Young Chesterfield Township B 1850 Ring Drive, Troy Ring Road Properties, Global Logistics & Dist. Signature Associates and 112,283 investment group LLC / Vikeda Grubb & Ellis 23. registered to Dennis Miguel Cabrera – 2011 Batting Champ Bostick, Warren 43100 Nine Mile Road, Novi Irwin J. Arkin LLC, Novi Durr Ecoclean Inc. Signature Associates and Jones 110,387 24. Lang LaSalle 30811 Century Drive, Wixom RCI Properties, Michigan Industrial Lee & Associates 110,000 Jose Valverde – 49/49 Saves 25. Columbus, Ohio Holdings LLC 36310 Eureka Road, Romulus Romulus Realty Ventures World Tek Industries Signature Associates and CBRE 103,994 LLC, investment group LLC Group Inc. 26. registered to Kirk Martin, Alex Avila – 2011 Silver Slugger Wixom 45000 Helm St., Plymouth Township BIT Holdings 34 LLC, Intertek Testing Services Colliers International 103,857 27. Canton Township Delmon Young – 5 Postseason Home Runs 28. 11101 Metro Airport Center IAC Metro LLC, NA DHL Global Forwarding Signature Associates and 99,982 Drive, Romulus B Grubb & Ellis 4250 - 4280 Haggerty Road, Amson Dembs, Novi GFA Inc. Signature Associates and 93,900 29. Colliers International Jhonny Peralta – 2011 All-Star Unit B, Canton Township B 30. 6567 Sterling Drive, Sterling Fairlane Tool Co. Inc., Global Logistics Services Signature Associates 90,621 Heights Fraser Doug Fister – 8-1 • 1.79 ERA 31. Orion Commerce Center, Lake Ashley Capital LLC, Modular Automotive Signature Associates 89,252 Orion Canton Township Systems LLC 1600 E. Big Beaver, Troy Liberty Property Trust, PGS Inc. Colliers International and 88,866 32. Malvern, Pa. Signature Associates 31271-31291 Comcast Drive, General Purpose Revstone Industries L. Mason Capitani 86,760 33. New Haven Vehicles Inc., New Haven 34. 50300-50320 Patricia, Chesterfield Phoenix Contracting, Hirotec America Inc. L. Mason Capitani and Colliers 85,258 Prince Fielder – 3-Time All-Star & 2-Time Silver Slugger Township Chesterfield International 35. Brownstown Business Center, Ashley Capital LLC, ThyssenKrupp Industrial Grubb & Ellis; Colliers 79,001 Brownstown Township Canton Township Services N.A. Inc. International

2012 SEASON TICKETS ON SALE NOW AS LOW AS $220 List is based on information from CoStar Group Inc., CPIX, Crain's research, from published information or as submitted by brokers, advisers or Outstanding benefits include: property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information. • Opening Day tickets • Postseason ticket priority • Free food vouchers B Lease renewal. • Discounted parking • And more C Two leases under separate companies. 313-471-BALL (2255) D Lease renewal and expansion. LIST RESEARCHED BY DANIEL DUGGAN Benefits apply to select packages 20120130-NEWS--0021-NAT-CCI-CD_-- 1/27/2012 10:25 AM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 21 Finance Extra: Big Deals of 2011 CRAIN'S LIST: OFFICE LEASES Ranked by square feet

Rank Building Owner, owner city Tenant Broker Square feet 1. Victor Corporate Center, Kojaian Management Trinity Health Corp. CBRE Group Inc. 347,590 Livonia Co., Bloomfield Hills Chase Tower, Detroit Rock Holdings Inc., Quicken Loans Inc. Bedrock Management 332,070 2. Detroit

Chase Tower, Detroit B Rock Holdings Inc., J.P. Morgan Chase Bedrock Management 214,107 3. Detroit

1075 W. Entrance Drive, Piedmont Office Realty Chrysler Group LLC Jones Lang LaSalle and UGL 210,000 4. Auburn Hills Trust Inc., Johns Creek, Equis Ga. First National Building, Detroit Rock Holdings Inc., TitleSource Inc. Bedrock Management 190,000 5. Detroit 15500 - 15700 Lundy Ford Motor Land Oakwood Healthcare NAI Farbman 134,936 6. Development Corp., Inc. Parkway, Dearborn Dearborn 7. Victor Corporate Center, Kojaian Management Quicken Loans Inc. Friedman Integrated Real 126,149 Livonia C Co., Bloomfield Hills Estate Solutions 45 W. Main, Grace Lake Visteon Corp., Van General Electric Co. Jones Lang LaSalle and CBRE 109,432 Buren Township Group Inc. 8. Corporate Center, Van Buren Township D 9. 45000 Helm St., Plymouth BIT Holdings 34 LLC, Intertek Testing Services Colliers International 103,857 Township Canton Township Renaissance Center, Detroit E General Motors Co., Deloitte LLP Hines Interests LP 102,440 10. Detroit

Troy Officentre, Troy Osprey Management Flagstar Bank FSB Friedman Integrated Real 94,571 11. Co., Brighton Estate Solutions and Signature Associates Renaissance Center, Detroit F General Motors Co., Urban Science Hines Interests LP 85,395 12. Detroit 13. 300 Galleria Officentre, Nemer Property Group, Ally Financial Inc. Jones Lang LaSalle 71,300 Southfield B Southfield 5800 Mercury Drive, Ford Motor Land Carhartt Inc. Plante Moran Cresa and Ford 70,773 14. Dearborn D Development Corp., Motor Land Dearborn 47603 Halyard Drive, Plymouth Metalply LLC, Cedar AVL North America Jones Lang LaSalle and 70,000 15. Springs Plante Moran Cresa MacKenzie South Technology Northern Equities Tognum America Inc. Grubb & Ellis 68,475 16. Group, Farmington Centre - Haggerty Corridor Hills Corporate Park, Novi Renaissance Center, Detroit B General Motors Co., Dykema Gossett PLLC Hines Interests LP 68,286 17. Detroit

2600 Big Beaver, Troy Bank of America, Dickinson Wright PLLC CBRE Group Inc. 67,000 18. Charlotte 19. 22355 W. 11 Mile Road, Eleven Mile Road LLC, ThyssenKrupp Materials Colliers International 64,607 Southfield Miami Beach, Fla. N.A. 20. 19771 Brownstown Center, Ashley Capital LLC, Federated Services CBRE Group Inc. 61,401 Brownstown Township Canton Township Group City Center, Troy B 888 West Big Beaver New World Systems Redico LLC 56,875 21. LLC, Troy 22. Northfield Point East - 5225 Alidade Capital LLC, Proctor Financial Inc. Signature Associates 56,000 Crooks, Troy Bloomfield Hills Oakland Tech Park, Auburn General Development Henniges Automotive Core Partners and InSite 55,000 Hills Co., Southfield North America Inc. 23. Schostak Brothers, Livonia 2923 Technology Drive, TRW Automotive, Otto Bock Polyurethane Newmark Knight Frank and 53,243 24. Rochester Hills Sterling Heights Friedman Integrated Real Estate Solutions 25. Kennedy Square, Detroit B Redico LLC, Southfield Walbridge Aldinger Co. Advocate Realty Advisors 51,402

26. First Center Office Plaza, Sovereign Group, Secure-24 Inc. Signature Associates and 50,446 Southfield Miami Lakes, Fla. Core Partners 27. Auburn Hills Corp. Center, Piedmont Office Realty Dassault Systemes Transwestern and Jones Lang 49,606 Auburn Hills B Trust, Johns Creek, Ga. Lasalle 28. 2710 Bellingham, Suite 100, Liberty Property Trust, Inergy Automotive/ Signature Associates and 46,825 Troy Malvern, Pa. Plastic Omnium Grubb & Ellis Professional Jet Management 19401 Victor Parkway, Livonia Northern Equities Infineon Technologies Friedman Integrated Real 46,297 29. Group, Farmington North America Corp. Estate Solutions and Cassidy Hills Turley One Detroit Center, Detroit B iStar Financial, New Foley & Lardner LLP Signature Associates and 44,408 30. York Jones Lang LaSalle 31. Orchards Corporate Kojaian Management UHY Advisors Michigan Signature Associates 44,376 Center I, Farmington Hills Co., Bloomfield Hills Inc. 32. Auburn Hills Corp. Center, Piedmont Office Realty Ally Financial Inc. Transwestern and Jones Lang 42,953 Auburn Hills B Trust, Johns Creek, Ga. Lasalle 33. 2455 Featherstone Road, Featherstone Partners Aspen Marketing Signature Associates 42,597 Auburn Hills LLC, Canton Township Services Inc. Experience the difference. 1001 Woodward Ave., Dimitrios "Jim" Papas, Caiden Management Co CBRE Group Inc. 41,500 34. Detroit Detroit All inclusive management at an affordable fi xed cost. Bloomfield Centre South - Jonna Cos., Southfield Rader, Fishman & Grauer Signature Associates and 41,164 35. 39533 Woodward Ave., PLLC Advocate Realty Advisors Bloomfield Hills B •Forming partnerships now

List is based on information from CoStar Group Inc., CPIX, Crain's research, from published information or as submitted by brokers, advisers or •Small, midsize and large cabin jets property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were •Reduce your total operating cost omitted because of a lack of complete information. B Lease renewal. •Maximize your aircraft effi ciency C A short lease extension prior to moving to Detroit. while enhancing your aircraft D Expansion. appearance, performance & value www.skywayavjets.comwww skywayavjets com E 12-year lease, relocation. F 21-month extension and expansion of 25,595 square feet. LIST RESEARCHED BY DANIEL DUGGAN Call today for more information, Geoff Sherman 1.248.568.0979 DBpageAD.qxp 1/20/2012 12:55 PM Page 1 20120130-NEWS--0023-NAT-CCI-CD_-- 1/27/2012 10:50 AM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 23

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE FINANCE shareholder from attorney. new business development. from senior art director, Stone and Si- Matthew Hloros to vice president and IN THE SPOTLIGHT mons Advertising, Southfield. MANUFACTURING MARKETING senior banking adviser, wealth man- Detroit-based Lakeshore TolTest agement group, PNC Financial Ser- NONPROFITS Corp., an international general Michael Balow to vice president, tech- Randi Berris to director of editorial ser- vices Group Inc., Troy, from market contractor, has named Jeff Miller nology and applications development, vices, The Quell Group Inc., Troy, from Margaret McKinley to director of devel- loan manager, consumer lending Asahi Kasei Plastics North America Inc., Michigan editor, Associated Press, De- opment, University Musical Society, group, former National City Bank, the company’s first CFO. Fowlerville, from director of technolo- troit. Ann Arbor, from director of develop- Troy. Also, Angelo Leslie to vice presi- gy. Also, Ramesh Iyer to vice president, Gerald Wilder to senior art director, ment, University of Michigan Library, dent and associate Miller, 37, had commercial operations, from director, J.R. Thompson Co., Farmington Hills, Ann Arbor. relationship man- been group ager, wealth man- controller for agement group, the power Detroit, from se- generation nior account exec- group at utive, ArborOak- Babcock & Request for Proposals land Group, Royal Wilcox in Oak; Ashley Boday Barberton, For Professional Services to vice president Ohio. and senior bank- Miller For the Police and Fire Retirement System ing adviser, He earned a Leslie wealth manage- bachelor’s degree in accounting of the City of Detroit ment group, Ann from Ohio University in Athens and Arbor, from vice a master’s degree in management president in the information systems from the The Trustees of the Police and Fire Retirement System of the City of Detroit special assets University of Akron. group and in pri- are seeking proposals from qualified firms to provide general investment vate banking, Ann McDonald-Up- Fifth Third Bank, ton to chief nurs- consulting services. Interested firms are invited to submit a proposal. The Southfield; Robert ing officer, St. Downey Jr. to vice Joseph Mercy Oak- request for proposal will be available on January 23, 2012. Responses are president and as- land, Pontiac, from due on February 17, 2012 by 3:00 P.M. EST. sociate relation- vice president and ship manager, chief nursing offi- Downey Jr. wealth manage- cer, Valley Baptist ment group, Medical Center, The RFP will be posted on the Retirement Systems of the City of Detroit’s Southgate and Ann Arbor, from vice Harlingen, Texas. president and wealth management ad- Also, Joy Calloway web site at www.rscd.org. The RFP will be on the PFRS home page. viser, Fifth Third Bank, Southfield; to associate vice Chris Uhl to vice president for commer- McDonald-Upton president of com- All correspondence and inquiries concerning this RFP should be directed cial banking, Troy, from vice president munity and rural in middle market banking, Comerica network develop- solely to Cynthia A. Thomas, Manager II, at [email protected] . Bank, Detroit; and Clayton Vanderpool ment from com- to vice president and relationship man- munity programs Responses are due on February 17, 2012 by 3:00 P.M. EST. ager for the Native American gaming director; Toni Flow- group, Troy, from vice president, Com- ers to associate erica’s U.S. bank- vice president of ing division, De- experience, diver- troit. sity and inclusion Phil Candela to from chief diversi- vice president of ty and inclusion of- sales, Towne Mort- ficer; Rita Stock- gage Co., Troy, Calloway man to senior from vice presi- leadership team, dent and general remaining chief accreditation and regu- latory officer; and Fabian Fregoli to se- manager, Inde- nior leadership team, remaining chief pendence Mort- medical information officer. gage Co., Clinton Candela Township. Damita Williams to vice president of Tamika Hall to di- patient care ser- rector of opera- vices, Detroit Med- tions, Sigma In- ical Center Chil- vestment dren’s Hospital of Counselors Inc., Michigan, Detroit, Southfield, from from chief nursing What are the operations man- officer and vice ager. president of pa- key trends in the tient care services, market indicating? HEALTH CARE Indiana Universi- ty Health North Is now the time for Michael Mark to Williams Hall Hospital, Carmel, your business to executive vice Ind. Also, Shawn president of sales and product develop- Levitt to senior begin reinvesting Mark Davidoff, ment, Health Management Systems of vice president, or are the risks America, Detroit, from chairman and chief nursing offi- Are we on the Michigan Managing CEO, The Mark Group LLC, West cer, from COO. still too high? Partner, Bloomfield Township. Lee Hawkins to ex- Deloitte LLP ecutive vice presi- road to recovery WE’LL DISCUSS: dent, Wayne Coun- PEOPLE GUIDELINES ty Medical Society Key economic indicators of Southeast or the precipice of a • Announcements are limited to Michigan, Detroit, management positions. Send Levitt from director of Potential impacts of the submissions to Departments, double-dip recession? • regional operations, American Society 2012 election season Crain’s Detroit Business, 1155 of Mechanical En- Gratiot Ave., Detroit, MI 48207- gineers, Dallas, 2997, or send e-mail to Texas. • Economic forecast over [email protected]. the next 5 years Releases must contain the person’s LAW March 13|Noon – 1 p.m. EST Carl Steidtmann, name, new title, company, city in Elizabeth Calla- Specifi c actions Chief economist, which the person will work, former han-Morris to • title, former company (if not shareholder, Hall To learn more, please visit businesses can take Deloitte Services LP promoted from within) and former Render Killian www.crainsdetroit.com/crainsevents in the face of city in which the person worked. Heath & Lyman Photos are welcome, but we cannot PLLC, Troy, from FREE to Crain’s readers uncertainty guarantee they will be used. attorney. Also, Callahan-Morris Jonathon Rabin to 20120130-NEWS--0024-NAT-CCI-CD_-- 1/27/2012 10:51 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS January 30, 2012

BUSINESS DIARY CALENDAR ACQUISITIONS TUESDAY Kelly Services, Troy, acquired a SALUTE 2011 NEWSMAKERS JAN. 31 Brazilian staffing company, Tradição Join Crain’s Tecnologia e Serviços Ltda. Attracting Global Talent to Michigan. Detroit 9-10:30 a.m. Automation Alley. With Business in CONTRACTS Maria Nevai, program manager, Glob- saluting its Do the Nova Consultants Inc., Novi, an engi- al Michigan, Michigan Economic De- 2011 neering, environmental and green en- velopment Corp. Automation Alley, Newsmakers of ergy company, has been selected by Troy. Contact: (248) 643-4900; email: the Year 11:30 DTE Energy Co., Detroit, to design and [email protected]. a.m.-2 p.m. install an additional 12 megawatts of Feb. 23 at the solar arrays at sites owned by DTE ACE 2012 Forum. 2-9 p.m. Annual Col- Westin Book Right Thing customers. laboration on Entrepreneurship. Cadillac in Vision Information Technologies Inc., With Olga Stella, vice president for Chehab Detroit. Detroit, has selected Tanner Friedman business development, Detroit Eco- Saad Chehab, Strategic Communications, Farming- nomic Growth Corp.; others. Skyline CEO of ton Hills, to handle media relations, High School, Ann Arbor. $20 on-site Chrysler/ Ethos Week marketing support and other commu- registration. Website: www. Lancia brands nications services. ace-event.org. for Chrysler HiQube, a division of Altair Engineer- Group LLC, and ing Inc., Troy, and Advanced Utility Sue Mosey, March1 -1 Systems, a division of N. Harris Com- THURSDAY   president of puter Corp., Toronto, Canada, an- FEB. 2 Midtown nounced a multiyear, nonexclusive Detroit Inc., agreement to develop and market In- Doing Business in Brazil: Latin Ameri- will be cob.emich.edu finity.BI, a business analytics module ca’s Engine of Economic Growth. 8-11:30 honored at the for Advanced’s CIS Infinity utility a.m. Automation Alley. With Sean Kel- Mosey customers. ley, commercial officer, São Paulo, luncheon for their achievements. Henry Ford Village Foundation, Dear- Brazil, U.S. Commercial Service; Eve born, has become a community part- Lerman, international trade specialist, Tickets range from $60 to $85. ner of the Southeast Michigan pro- U.S. Department of Commerce, U.S. For more information and to gram of Leave A Legacy through the Commercial Service; others. Automa- register, visit Planned Giving Roundtable of South- tion Alley, Troy. Members preregistra- www.crainsdetroit.com/events. east Michigan, Metamora. tion $20, at the door $30; nonmembers Rehmann LLC is the title sponsor. pre-registration $40, at the door $50. EXPANSIONS Contact: (800) 427-5100; email: info@ made Pie Co.; Doreen Bolhuis, presi- automationalley.com; website: www. dent/CEO, Gymco Inc., others. Walsh Mattress USA Inc., Brighton, automationalley.com. College, Troy. $25, $15 for Walsh stu- launched a new division, www.party dents. Contact: Jan Hubbard, (248) 823- suppliesdelivered.com. Connections and Cocktails. 5-7 p.m. 1392; email: jhubbard@walshcollege. Inteva Products LLC, Troy, opened a Detroit Chamber of Commerce, Prior- edu; website: www.thewalshinstitute. new closure systems manufacturing ity Health. A networking reception. com/eyou. WJR’s Paul W. Smith plant in Cordeirópolis, Brazil. Web- Texas de Brazil, Detroit. Free to site: www.intevaproducts.com. chamber members Business Builder Talent Townhall. 11:30 a.m.-1:30 p.m. EMU’s David Mielke The Spice and Tea Exchange LLC, St. and above. Contact: (313) 596-0479; Feb. 9. Baker College, Auburn Hills Augustine, Fla., opened a store at 175 email: malabast@detroitchamber. Chamber of Commerce, Oakland Uni- W. Maple Road, Birmingham. Tele- com; website: www.detroitchamber. versity, Everything Business Corp., phone: (248) 433-1500. Website: com. Oakland Community College. With www.spiceandtea.com. Amy Cell, senior vice president of tal- TRW Automotive Holdings Corp., Livo- ent enhancement and workforce de- nia, an automotive safety systems COMING EVENTS velopment, Michigan Economic De- provider, will open a new facility in Impact 2012. 8 a.m.-5 p.m. Feb. 7. Au- velopment Corp.; others. Crowne Querétaro, Mexico, to produce brake tomation Alley. With Michael Fezzey, Plaza, Auburn Hills. $32 chamber Your Bank’s systems. Website: www.trw.com. president, Huntington National Bank, members and guests, $40 nonmem- bers. Contact: (248) 853-7862; email: Fifth Third Bank, Southfield, opened a East Michigan region; others. Center- [email protected]; web- financial center at 23633 Greenfield point Marriott, Auburn Hills. Mem- site: www.auburnhillschamber.com. Road, Southfield. Telephone: (248) bers preregistration $69, at the door 936-0314. Website: www.53.com. $89; nonmembers preregistration $99, Not Lending? at the door $119. Contact: (800) 427- Advanced Physical Therapy Center PC, Is Nonprofit Experience a Fast Lane or Grand Blanc, opened a clinic at 5625 5100; email: info@automationalley. Detour? 5:30-8 p.m. Feb. 13. Inforum Water Tower Place, Suite G, Clark- com; website: www.automationalley. Center for Leadership. With Kathy Os- ston. Telephone: (248) 620-4260. Web- com. wald, senior vice president and chief site: www.advancedphysicaltherapy. human resources officer, Henry Ford com. Entrepreneur-you 8 a.m.-3 p.m. Feb. 8. Health System; others. Henry Ford Walsh College, Michigan Women’s Health System Allan D. Gilmour Cen- NAME CHANGES Foundation, Inforum, Huntington ter for Learning, Detroit. $55 Inforum Bank, others. For women with a pas- members, $70 nonmembers. SmithGroup, Ann Arbor, an architec- sion for entrepreneurship. With Wendy Contact: (877) 633-3500; website: ture, engineering and planning firm, Achatz, owner/founder, Achatz Hand- www.inforummichigan.org. changed its name to SmithGroupJJR, creating a single brand, bringing to- gether SmithGroup and its sub- sidiary JJR LLC. Website: www. smithgroupjjr.com. NEW PRODUCTS Ford Motor Co., Dearborn, and Azure Dynamics Corp., Oak Park, introduced the Transit Connect Electric wagon. Website: www.azuredynamics.com. ours are Federal-Mogul Corp., Southfield, de- . veloped a new Champion FB-M18 irid- Call for a free consultation. ium spark plug for large stationary engine applications using com- Loan amounts: $1,000,000.00 and above. pressed natural gas, landfill gas or biogas fuels. Website: www.federal s Investment Real Estate s Equipment mogul.com. s Owner Occupied Real Estate s Turnaround Consulting s Lines of Credit s Loan Modifications NEW SERVICES s Accounts Receivable s Bank Workouts PulteGroup Inc., Bloomfield Hills, a homebuilding company, launched an iPad application that captures indi- vidual consumer preferences and shows home configurations in real time, giving instant feedback on pro- jected monthly payments and how a change in options impacts the bottom line. Website: www.pulte.com. 800.509.3552 Formcode LLC, Troy, a creative firm, www.eclipsecapitalgroup.com designed and launched a website for 2207 Orchard Lake Road, Sylvan Lake, MI 48320 Velocity Cow LLC, Detroit, a video “Since 1997” production firm, at www.velocity cow.com. 20120130-NEWS--0025-NAT-CCI-CD_-- 1/27/2012 6:27 PM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 25 Roncelli: Ex-VP, fired JOB FRONT by brother, seeks $36M TECHNICAL POSITIONS AVAILABLE Oracle Database Administrator for ITC ■ From Page 3 Holdings Corp. in Novi, MI. Duties: monitor, maintain & manage oracle database system doesn’t believe it should be part of and ensure associated hardware resources Scott’s lawsuit and will respond to allocated to the databases & ensure high GET YOUR RESUME VIEWED it in court. He would not discuss availability & optimum performance. Full I didn’t push the duties available at www.itctransco.com. Scott Roncelli’s specific allega- “ Requirements: Bachelor degree in tions against the chairman. buttons to make this Engineering, IT or related field. 5 yrs “We feel this is ultimately a fam- experience in an Oracle database administrator position using Oracle 9i and/or ily dispute (between Scott and go to litigation. I 10g. Experience in the following: Oracle Gary), and as a company we’re do- Enterprise Manager; Oracle RAC; ASM; ing what we can to stay out of it,” just want to get paid PL/SQL; Toad; SQL Developer; RMAN; Oracle Automatic Workload Repository; & GUARANTEED he said. fairly. Automatic Database Diagnostic Monitor. Andrew Baran, partner at Giar- ” Oracle DBA Certification required. marco Mullins and attorney for Experience can be acquired concurrently. Roncelli Inc. in the case, said the Scott Roncelli To apply, see our website, lawsuit is without merit and also www.itctransco.com. EOE. characterized it as a family dis- named Tom Wickersham, a former pute in which the company should accountant at Troy-based Doeren REAL ESTATE have no role. He declined to com- Mayhew & Co. PC and later Roncelli ment on discussions about buying company treasurer, to succeed EXPERIENCED BROKER NEEDED out Scott’s share of Roncelli. Gary Roncelli as president. It was Transwestern is a national, privately-held Scott Roncelli claims Gary and the first time someone outside the operating company specializing in commercial real estate services, investment and development. The the company are deliberately “at- Roncelli family has overseen its Detroit office is seeking an experienced broker |JOB FRONT tempting to manipulate the values management. with a proven track record of success and of Roncelli Inc. and other (Roncel- Gary continues to own nearly excellence in the Detroit metropolitan and suburban markets. Responsibilities include sales crainsdetroit.com/jobfront li-owned companies) in order to 24,000 shares, or more than 50 per- and leasing of the company’s Detroit portfolio. All minimize the buyout amount to cent, of the company, followed by inquiries will be held in confidence. Please email Scott,” according to the lawsuit. Scott with 18.75 percent and broth- resumes to [email protected] Scott also contends the brothers er David Roncelli with about a could have resolved the issue some 15 percent stake, while Wicker- Call or email today for information time ago, without going to court. sham acquired a 5 percent stake on a custom advertising plan! REAL “I didn’t push the buttons to when he became treasurer, accord- [email protected] 313.446.6068 make this go to litigation. I just ing to the lawsuit. want to get paid fairly. And if they Recent projects include the ESTATE want to make this go that far to $5.7 million Wayne State University make that happen, then it will,” Law School Damon J. Keith Center LEGACIES COMMERCIAL PROPERTIES Scott Roncelli said. for Civil Rights, which wrapped in “Gary could have picked up the late 2011, ongoing construction on Broker’s Opinion of Value phone anytime and saved all the the $303 million lithium battery Philanthropist, investor, engineer and entrepreneur Would you like to know what your building money in attorney fees that he’s plant in Holland for LG Chem Ltd., Marvin L. Danto was remembered last week. is worth? Broker with 27 years of exp. will going to have to spend over the and the $142 million Pinnacle Race Mr. Danto died Jan. 24 at age 95; a funeral was held Jan. 26 give you an opinion without the higher cost next six months to a year. I just Course in Romulus. at the Ira Kaufman Chapel, Southfi eld. of an appraisal. wanted my fair share, and now I The Scott Roncelli lawsuit Trained as an engineer, Mr. Danto was for many years a well- Jonathan Brateman Properties, Inc. (toll free 855-JBPRPTY) have to collect my fair share with claims Gary used Roncelli’s mon- known retailer as the CEO and chairman of Englander’s, a fi ne attorney fees and costs added to ey and resources to fund a pro- furniture and interior design group of eight stores in Michigan and Florida. He was also a director of the National Home Furnishing Association and was INDUSTRIAL PROPERTY it.” tracted legal battle with Sterling elected its president and chairman. Scott, also a former operations Heights on behalf of Hillside Produc- In 1975, he founded the Michigan Design Center in Troy, the first of its kind in AVAILABLE NOW manager at Roncelli Inc., said he tions Inc., the management compa- the country. He also created the 775,000-square-foot Design Center of the has been willing to sell back his ny for Freedom Hill Amphitheater Americas in Dania, Fla.; he sold that center in 2005. Taylor/Romulus Area — 4,000 to 80,000 sq. ft. 7,812 shares for as low as $3.5 mil- which Roncelli co-owns with Mr. Danto, with his wife, Betty, supported many Jewish nonprofits and causes, Ideal for logistics company, lion, far less than their market val- restaurateur Joseph Vicari and including the supporting grant for the Danto Family Home for the Elderly in West manufacturing or warehousing. ue, but he claims Gary is offering ended with a $31 million settle- Bloomfi eld Township. Yvon Rea 734-946-8730 less than a tenth of that sum to buy In 2006, he made a $3 million gift to Wayne State University for what became ment in 2004. the Marvin Danto Engineering Development Center. That same year, he donated him out. He also claims he is due The company only reimbursed $4 million to the University of Michigan to support research that was being con- some proceeds from a Freedom Scott and Roncelli’s co-owners ducted at the cardiovascular center on scleroderma, a connective-tissue disease Warehouse Space Available Hill Amphitheater lawsuit settle- their share of the legal expenses that affected Mr. Danto. Dearborn ment with Sterling Heights. plus interest, allowing Gary to His wife, Betty, preceded him in death. He is survived by two daughters and a Scott wasn’t specific about “reap millions of dollars in settle- son, five grandchildren and two great-grandchildren. 93,000 sq. ft. Warehouse Gary’s grounds for firing him, ex- ment funds for himself,” the law- The family suggests that memorial gifts be made to: Marvin and Betty Danto 12 Truck Wells cept to say he was slow to answer Memorial Fund at the Jewish Hospice & Chaplaincy Network, 6555 W. Maple, suit alleges. West Bloomfield, 48322, or to the University of Michigan Cardiovascular Center/ Call (313) 506-0534 his brother’s call and return from But Vicari, co-owner of Hillside Marvin and Betty Danto Fund, 1000 Oakbrook, Suite 1000, Ann Arbor, MI a job site in Detroit last spring, and with Roncelli and CEO of Warren- 48109. WAREHOUSE STORAGE SPACE Gary has been increasingly prone based Andiamo Restaurant Group, to anger in the office and “secrecy” said the settlement proceeds from about the company since the eco- Sterling Heights went largely to re- Richard “Dick” LaMont, M.D., retired chief of orthopedic Self Storage Facility nomic downturn slowed commer- imburse unpaid vendors at Free- surgery at Children’s Hospital in Detroit, died Jan. 20 at age 261 Units & Oil Change cial real estate development. dom Hill and to install a new roof 83. Services were held Jan. 24. White Lake, Michigan Dr. LaMont had a distinguished career as a surgeon and But Riberas said business is at the amphitheater — a condition $1.6M Purchase Price educator. The Wayne State University School of Medicine had Call Income Property Organization much improved from the “dark of settling with Sterling Heights named an honorarium award to an outstanding resident in Dr. Bruce K. Lister 248-932-0300 ext. 15 days” of the national recession and that alone cost over $5 million. LaMont’s name, in honor of his decades of teaching and mentoring orthopedic automotive bankruptcy reorgani- Only a portion went to pay back residents at the school. zations of 2009. Roncelli Inc. re- “loans” Roncelli Inc. had made to “(Dr. LaMont) was an extremely skilled technician. But beyond teaching his Call Us For Personalized ported revenue of $176 million in Hillside during the Sterling residents how to do surgery, he taught us how doctors should treat patients Service: (313) 446-6068 2010 and expects to surpass that Heights litigation, he said. and their families,” said David Montgomery, M.D., who trained under Dr. sum in 2011 as business continued LaMont at WSU. “The profession of orthopedic surgery is better because of He said he had heard of the Ron- Dr. Richard LaMont.” CLOSING TIMES: Monday 3 p.m., to grow, Riberas said, although ex- celli family dispute but hasn’t spo- one week prior to publication date. In 1992, Dr. LaMont was elected president of the Mid-America Orthopedic As- Please call us for holiday closing times. act year-end results aren’t yet ken with either brother recently sociation. In addition to leading the surgical unit at Children’s Hospital, he was available. about it. chairman of the department of orthopedic surgery at the Detroit Medical Center. FAX: (313) 446-1757 Founded in 1966 as a concrete- Scott Roncelli’s new lawsuit also A specialist in treating children with severe birth defects, he volunteered for E-MAIL: [email protected] pouring business by the late Ray- alleges Gary added extravagant years at the Detroit Institute for Children. INTERNET: www.crainsdetroit.com/section/classifieds mond “Skip” Roncelli, Roncelli personal expenses to the LG Chem He was an avid sailor, licensed pilot and photographer. He is survived by his Inc. grew from an estimated wife, Mary Susan, five daughters and their husbands, 11 grandchildren and two Confidential Reply Boxes Available project that made the contract great-grandchildren. $200,000 revenue its first year to “significantly less profitable,” and The family asks that memorial donations be sent to the Alzheimer’s Associa- PAYMENT: All classified ads must be more than $236 million in 2007, be- that he used various Roncelli- prepaid. Checks, money order or tion or to Children’s Hospital of Michigan Foundation/Orthopedic Education in Crain’s credit approval accepted. fore the lending crisis and subse- owned businesses to help pay per- memory of Richard L. LaMont, M.D. Credit cards accepted. quent national economic down- sonal debts and expenses. See turn. Chad Halcom: (313) 446-6796, For information on placing a Legacy tribute, please call or email Jamie Maniloff. In early 2008, the company [email protected]. Twitter: Crainsdetroit.com/Section/Classifieds [email protected] | 313-446-0351 for more classified advertisements 20120130-NEWS--0026-NAT-CCI-CD_-- 1/27/2012 6:25 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS January 30, 2012 Autism: Tax credit added to bills ■ From Page 1 proponent of the bill and CFO of DTE Energy Co. in Detroit. While the insurance mandate is This may be a convoluted, complicated still in Senate Bills 414 and 415, “ health insurers would be allowed way to do something that could be to claim a credit against the new 1 percent health insurance claims approached much more simply and broadly tax that went into effect last Octo- ber, according to a Dec. 16 report if an employer chooses to cover neuro- by the state Department of psychiatric disorders. Treasury. ” “After years of working this is- Mark Reinstein, sue, under the leadership of Mental Health Association in Michigan Leading the Way (Richardville), we have reached a very workable compromise that is ical costs. Bolger has opposed an insurance a win-win for families with chil- But Meador said the personal mandate for autism, Ari Adler, his to a Brighter Michigan Future. dren with autism and the business income tax credit was not ex- press secretary, said Bolger is community,” Meador said. plored in depth because of the keeping an open mind to the po- The Leadership Michigan program provides opportunities There are approximately 15,000 wide range of income levels of par- tential compromise. children in Michigan with autism ents in Michigan. “The speaker is committed to for current and emerging leaders to become more informed spectrum disorder and another “There are technical tax issues. finding a solution to the autism is- about the state’s issues and to inspire action to create 1,000 are born each year. Lifetime If someone only has $30,000 of in- sue and will work with any and all costs for each child average come and spends $20,000 on people who come forward with sol- solutions toward a brighter future. $3.7 million, or $58 billion in (autism treatment) costs, you id ideas,” said Adler. “We’ve Michigan. couldn’t generate enough of a heard about the potential changes Apply online today and join the Michigan Chamber The mandate would require credit to make it work,” Meador to the Senate bill, but we don’t health insurers to cover autism said. “Richardville wanted anoth- plan on taking a position on the Foundation as we lead business and move for children up to age 18 with a er option to spread it across large legislation until we see the final Michigan forward. Call (517) 371-2100 or visit maximum annual benefit of pools to reduce costs for every- form that comes out of the Sen- $50,000, although there is talk the one.” ate,” he said. http://leadership.michamber.com/application annual limit could be lowered to Mark Reinstein, president of Adler said hearings in the satisfy insurance company con- the Mental Health Association in House health policy committee, cerns, Meador said. Michigan, said many mental health headed by Gail Haines, R-Water- “Insurers would pay the provider groups still favor includ- ford, also could be scheduled in (provider) costs and send the bill ing autism mandates in a broader early spring after the Senate ap- to the state for reimbursement,” mental health package that would proves the bill. Leading Businesses. Moving Michigan Forward. which would then tap into the require comparable coverage as In June 2009, Democrats in the 1 percent claims tax account, medical. House passed a package of autism Local: (517) 371-2100, Toll Free (800) 748-0266 Meador said. www.michamber.com “This may be a convoluted, com- bills with bipartisan support that If the “amount of the credit … plicated way to do something that would have provided comprehen- exceeds the assessment liability of could be approached much more sive autism coverage. The Repub- the carrier or third-party adminis- simply and broadly if an employer lican-controlled Senate, under for- trator … the excess share shall not chooses to cover neuro-psychi- mer Majority Leader Mike Bishop be refunded but shall be carried atric disorders (including and Health Policy Chairman Tom forward as an offset to the assess- autism),” Reinstein said. George, did not take up the issue. ment liability,” said the Treasury But Reinstein said mental Efforts to pass similar bills last report. health groups also believe — if the year also fell short, but Meador Meador said business groups bills are approved — that Medic- said support has been growing as with which he has discussed the aid funding will be cut because the politicians understand the long- bills are still opposed to insurance tax credit will deplete money from term cost savings for the state, es- mandates and are concerned that the state Medicaid program. pecially the education system. the 1 percent claims tax, which Calley has said the new propos- Some 27 other states have ap- helps fund the Medicaid program, al would have a minimal impact proved similar bills since 2001. sunsets on Jan. 1, 2014. on Medicaid funding. In 2009, DTE added coverage for “One reason some of these busi- Sen. Jim Marleau, R-Orion autism to 10,000 workers through ness groups exist are to oppose all Township, chairman of the Senate its self-funded insurance plan. government mandates,” Meador health policy committee, is expect- Other companies also are offering said. “(Some) worry that the man- ed to hold hearings on the bills autism coverage to their benefit dates might disproportionately soon, once a general agreement is packages, including Microsoft hurt smaller businesses.” reached between the Senate and Corp., Intel Corp. and Home Depot. Most health care organizations, House on the bills. Meador said that if children are including the Michigan Health and But sources tell Crain’s that provided early autism behavioral Hospitals Association, support the health insurers and mental health therapy, lifetime costs can be cut autism bills. The Michigan State advocates want additional changes by $2.1 million — to $1.6 million — Medical Society has given limited in the bills, which is complicating and can result in societal savings support for the bills, depending on and slowing up a final deal. later on because children become impact to Medicaid. Another complicating factor is a productive members of society, in- “We are satisfied and pleased requirement in the Affordable stead of burdens to families and that the bills would require all Care Act of 2010 that states pay for government programs. covered treatments to be evi- coverage options that are greater Treating autism is economical- dence-based,” the medical society than the soon-to-be released feder- ly justified, Meador said, because said in a statement to Crain’s. al minimum health insurance the estimated 1 percent increase “Without knowing the budget im- benefit package. in monthly premiums — between plications of the 1 percent offset, “(Legislators) hope that autism $1.74 to $4.25 per month — are however, we cannot take a firm is part of a basic benefits pack- more than paid for by health care position on this legislation as age,” said a source familiar with cost savings and productivity written.” the talks in Lansing. “One good gains by children with autism and Lt. Gov. Brian Calley, who sug- thing is the state will save a couple their parents. gested the revenue-offset mecha- million dollars in 2013” because a National data shows that one nism, also supports the bills. Cal- new national clinical definition of out of every 110 children born will ley, like Meador, has a daughter autism has removed Asperger’s be diagnosed with autism. Since who has been diagnosed with syndrome from the list of covered 2001, the number of children with autism and is undergoing unin- autism disorders. autism in Michigan public schools sured treatment. A spokesman in Snyder’s office has increased by more than Calley also suggested eliminat- said a third bill to allow the rev- 100 percent from 5,680 to more ing the insurance mandate from enue offset is being written. That than 15,000. the bill and instead giving parents bill would be part of the autism Jay Greene: (313) 446-0325, and legal guardians a personal in- package in Marleau’s committee. [email protected]. Twitter” come tax credit to write off med- While Speaker of House James @jaybgreene 20120130-NEWS--0027-NAT-CCI-CD_-- 1/27/2012 6:51 PM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 27 Goals: Hitting goals will require cash M&A Experience ■ From Page 3 In Your Corner. fice of consultant McKinsey & Co., said that the asset-based frame- LEADING THE WAY work “can nurture and support Ford Motor Co. Executive Chairman William Clay Ford Jr. is heading up the different companies.” New Michigan plan to turn the state around. Directing the plan’s six areas The turnaround plan also in- are: cludes policy priorities such as in- vesting in Michigan’s universities Global Engineering Village Natural Resources Economy and accelerating the redevelop- Ⅲ James Hackett, president and Ⅲ Stephen Kircher, president and ment of Michigan’s largest cities CEO, Steelcase Inc. CEO, Boyne Eastern Operations - and metro areas, with a special Ⅲ Charles “Chip” McClure, Boyne Resorts emphasis on Detroit. chairman, president and CEO, Ⅲ Lou Anna Simon, president, Some of the ideas outlined in the Meritor Inc. Michigan State University group’s first turnaround plan were Gateway to the Midwest Global Center of Mobility enacted in 2010 by Gov. Rick Sny- der and the legislature, but key ar- Ⅲ Stephen Gorman, executive vice Ⅲ William Clay Ford Jr., executive eas — like increased investment in president and COO, Delta Air Lines chairman, Ford Motor Co. education and in cities — saw de- Ⅲ Douglas Stotlar, president and Ⅲ Stephen Carlisle, GM vice clines. CEO, Con-way Inc. president, global product planning, General Motors Co. For the policy components from Higher Education Marketplace the plan to become more than Ⅲ Patrick Doyle, president and Life Sciences Hub words on a page could be an uphill CEO, Domino’s Pizza Inc. Ⅲ William Parfet, chairman and battle, political experts say. Ⅲ Mary Sue Coleman, president, CEO, MPI Research And if the group is unwilling to University of Michigan Ⅲ Michael Jandernoa, board of spend money to gain support for directors, Perrigo Co. its goals, it’s unclear how success- ful the group will be. A case in point is the New Inter- BUSINESS LEADERS’ FOCUS national Trade Crossing, a second The New Michigan plan suggests ways to build on six state strengths: Michael G. Wooldridge bridge over the Detroit River sup- Ⅲ Engineering Talent/Global quality, affordability and economic ported by Snyder but opposed by Engineering Village: The home of impact, growing university Grosse Pointe trucking magnate the American auto industry, enrollment, industry and university Manuel Moroun, who owns the Michigan is also home to a plethora funded R&D and commercialization Ambassador Bridge, currently the of engineers. The state needs to of R&D. only Detroit River crossing. The keep pushing its global identity as Ⅲ Natural Resources/Natural bridge is referenced in both the an engineering hub, increase its Resources Economy: Agriculture is turnaround plan and the New capacity to educate engineers and Michigan’s second-largest industry. Michigan framework, and Roth- increase the number and size of Add to agricultural processing First Tier Ranking engineering firms in the state. in Corporate Law well, along with PVS Chemicals capacity and exports, increase leisure tourism and grab the lead in Inc. President and CEO Jim Ⅲ Geographic Location/Gateway to the Midwest: Michigan’s alternative industry technologies. Nicholson, voiced strong support I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing logistics sector can grow if Ⅲ Automotive Industry/Global for the bridge in a meeting with investments are made in trade- Center of Mobility: Take the lead in Crain’s editorial board last week. related infrastructure, like a second sustainable mobility, multimodal Yet the group hasn’t provided fi- span over the Detroit River or systems, vehicle/infrastructure nancial support for the pro-bridge scaling the Wayne County technology that improves road faction, said Rich Robinson of the aerotropolis. The logistics base safety, and grow the auto industry. Michigan Campaign Finance Network. should be consolidated into the Ⅲ Health & Medical Expertise/Life “I thought Business Leaders for state. Sciences Hub: Increase “medical Michigan was most notable last Ⅲ Higher Education tourism” — nonresidents traveling year for the absence of its money System/Higher Education to the state for medical procedures and voice on the bridge issue,” Marketplace: Michigan’s — create a bio-pharmaceutical R&D universities have name recognition Robinson wrote in an email to hub, become a center for research regionally and nationally. Improve and medical testing labs. Crain’s. “(Moroun’s Detroit Interna- tional Bridge Co.) spent $6 million Source: Business Leaders for Michigan on television ads. … That was suf- ficient to kill the bill in committee. cally … a lot of his objectives were taxes on those who are working,” As far as I know, BLM sat it out. their objectives. Now, if asking he said. “The big question is Their voice, not to mention cam- whether Snyder wouldn’t have got- whether or not tax cuts in and of paign contributions, lobbying and ten as much done if not for Busi- themselves are going to create jobs ads, could have made a differ- ness Leaders for Michigan push- and increase revenue.” ence.” ing their agenda? They were all on Kelly Chesney, vice president of Complacency is working against the same page. If (they) had been marketing and communications the group, said Bill Ballenger, edi- pulling in a different direction, it for the CEO group, said that Busi- tor of the newsletter Inside Michi- would have been a truer test of ness Leaders for Michigan in- gan Politics. who has the most clout.” tends to take the plan around the “It seems to me they don’t have And some of the group’s objec- state, meeting with community quite the oomph going for them tives take money the state just groups, and will unveil some of its they had a year or two ago, partic- doesn’t have, said pollster Bernie city strategies at the Feb. 23 De- ularly because there are elements Porn, president of Lansing-based troit Economic Club luncheon in of organized labor and the Democ- Epic MRA Corp. conjunction with the Brookings In- ratic Party and liberals who felt “So many of those policy objec- stitute. that some of the things done last tives sound like they will cost The business leaders will con- year were wrong, were bad deci- money,” he said. “Certainly in- tinue to evaluate candidates via sions, and that the Legislature vesting in cities — and this fol- interviews and surveys, as they should be out to undo them with lows a time where because of the have in the past, she said, deter- the budget surpluses they’re get- economy investment in cities as mining which candidates share ting now,” Ballenger said. reflected by revenue sharing the group’s priorities, and spend “When you start to have suc- funds has been declining along accordingly through the group’s cess, it almost can be more of an with investment in education … two political action committees. impediment to get what you want those are two big ticket items that The group has more ability to than when you’re fighting uphill will have to wait ‘til the economy garner support for its framework, for 10 years.” improves and revenue increas- Ballenger said, because its mem- Ballenger said that the goals in es.” bers are the business leaders who the first turnaround plan were While the economy is improv- can effect those changes. largely successful, but he added ing, Porn said, there’s “a long way Each key area has two high-pro- that it’s not clear how much credit to go” before the state’s budget file business leaders as its “cham- Business Leaders for Michigan justifies significant new invest- pions,” and Chesney said the can claim. ment. champions are beginning work to “I think they can take a certain “Every single one of the major attract interest to the pillars of the amount of credit,” he said. “I think items costs money, so at some plan. a lot of them and Snyder were on point, you have to raise employ- Nancy Kaffer: (313) 446-0412, the same page when he was run- ment, which will raise existing [email protected]. Twitter: ning for office, at least philosophi- taxes, or raise the percentage of @nancykaffer 20120130-NEWS--0028-NAT-CCI-CD_-- 1/27/2012 6:29 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS January 30, 2012 ‘Fela!’ Music Hall hits the big time with Broadway musical ■ From Page 1 sical is gaining momentum. St Clair Shores; Joyce Hayes- we weren’t just trying to bring a “Fela!” also fits in with the di- SIDESHOWS IN THE BIG TOP Giles, senior vice president of cus- Broadway show —we were trying versity agenda Paul has set for Mu- tomer service at DTE Energy Co., to make Fela Kuti a household sic Hall. Music Hall Center for the Performing bration,” hosted by Music Hall; U.S. Court of Appeals Sixth Circuit name.” Arts’ production of the Broadway $350, call (313) 887-8500. “Our mission is for you to see musical “Fela!” runs Feb. 14-March Senior Judge Damon Keith; and Paul forged over 40 collabora- something you haven’t seen be- Feb. 15: Reception for the local metro Detroit McDonald’s fran- tions with for-profits and nonprof- 4 with tickets priced $30-$100, Nigerian community, hosted by fore, to mix with other demo- available at www.musichall.org. Music Hall; free. chise owners Errol and Savarior its to bring “Fela!” to Detroit and graphics so you get to know each Service. to enrich the educational experi- The organization plans to erect a Feb. 16: Live Afrobeat music and other,” Paul said, using the per- big-top tent in the parking lot dancing, hosted by DTE Energy Co.; The committee donated and/or ence around the production. forming arts to unite communi- adjacent to the Madison Street hall lent Music Hall more than $300,000 Other collaborators include: free. ties. and roving lights to create “the Feb. 17: Afterglow hosted by to help it front the artist fees it The Detroit Public Library, “We knew we could blast this effect that something really big … Charles H. Wright Museum of needed to bring “Fela!” to Detroit, which displayed the Anikulapo- message of unity all the way out to and unusual is happening in African American History, for Paul said, adding that all loans Kuti exhibit that’s also touring at Wixom because we had a Broad- Detroit,” said Vincent Paul, patrons who purchase tickets to have since been paid back. area schools, along with a timeline way show.” president and artistic director of that night’s performance of “Fela!” Paul pieced together corporate on the country of Nigeria. Music Hall. “Fela!” is the largest program at the $75 or $100 level. and foundation support totaling The Detroit Institute of Arts is scheduled at Music Hall in its 83- Music Hall and other groups will Feb. 18: Nightclub, hosted by another $300,000 from previous hosting a Feb. 9 lecture by Lemi host events in the heated tent for Dennis Archer Jr. and his Ignition year history, based on its invest- five nights: educational program grants made Ghariokwu, illustrator for all of ment of more than $1.6 million in Media Group LLC and Ambassador by the Community Foundation for Fela Kuti’s musical albums and an Feb. 14: Opening gala, “Fela- the production, its three-week run Magazine; free. Southeast Michigan and new gifts expert in African and, specifically, from Feb. 14 to March 4 and the from the General Motors Nigerian, art. sheer amount of related scenery, week run as opposed to the one- Foundation, Ford Motor Co. Fund, University Musical Society in music and audio coming to the week run proposed by Fisher The- McDonalds Corp. and DTE Energy Ann Arbor included “Fela” in its hall onboard five tractor trailers, Our mission is for atre operator Nederlander Detroit Foundation. season brochure and is selling Paul said. Tickets are $30 to $100 a “ LLC. The funds support a traveling tickets to the show from its box of- seat. you to see something “This show works best when it exhibit on the life of Kuti and a 15- fice. The show will bring to Detroit a has longer runs in a market be- member local actors’ troupe doing Charles H. Wright Museum of cast and crew of about 60 and em- you haven’t seen cause it gives audiences a chance a 45-minute assembly on his life African American History created an ploy 60 local stagehands, 45 bar- to find the show,” Selby said. that highlights, among other exhibition on the life of Aniku- tenders and numerous caterers, before, to mix with Nederlander, which books things, the “Afrobeat” style of mu- lapo-Kuti with the Music Hall as a ushers, parking attendants and se- Broadway programming for De- sic he pioneered and its ties to prelude to the Broadway musical. curity personnel. other demographics troit’s Fisher Theatre, the Detroit modern hip hop. The exhibition opened Jan. 13 and so you get to know Opera House and occasionally at the Both are circulating among area runs through April 1. Organiza- An artist’s story Gem Theatre, offered a one-week, schools, from Detroit Public Schools tions such as Wayne State each other. shared-risk run for the Detroit to Roeper School in Bloomfield University, Wayne County Community Based on the life of African com- ” show, said Alan Lichtenstein, ex- Hills and Pioneer High School in College District, University of Michi- poser, performer and social ac- ecutive director of Nederlander Ann Arbor. gan’s African Studies Program, Vincent Paul, Music Hall tivist Fela Anikulapo-Kuti, the Detroit. But in the end, it with- After finishing 2011 with an op- and UMS are buying blocks of tick- Center for the Performing Arts musical is presented by producers drew its bid. erating budget of $3.5 million and a ets to send students to perfor- Shawn “Jay-Z” Carter, Will Smith, the three-week run. “I didn’t feel comfortable trying surplus of just under $35,000, Mu- mances, Paul said. Jada Pinkett Smith. The show’s co- The decision to come to the Mu- to attract three weeks worth of au- sic Hall is projecting a 2012 budget Paul said he found a way for creators are Stephen Hendel and sic Hall for the Detroit perfor- dience,” he said. of $5.8 million, with a projected each of the 40-plus collaborators to Bill T. Jones, who also is choreog- mances was simple, Stein said. “I don’t have a nonprofit status surplus of just under $230,000, Paul benefit and to take ownership in rapher and director. Paul’s enthusiasm, all of the col- where I can go out and appeal to said. the production. UMS, for example, “(Anikulapo-Kuti) used his mu- laborations and educational pro- corporations to buy a performance will get 35 percent of every ticket sic as a weapon to deal with any grams “was more than enough to to raise money for Music Hall,” they sell to “Fela!”, he said. And form of injustice, corruption and convince us the Music Hall was said Lichtenstein, who served as Support through collaborations WXYZ, which has higher viewer- mismanagement that was unfortu- the right place to come,” he said. artistic director of the hall from In addition to the donations, ship among suburban residents, is nately rife in Nigeria in the ’60s, “It’s not just a money-making 1977 to 1979. loans and grants, Paul was able to helping to broaden awareness of ’70s and ’80s when Nigeria was un- venture — I was really im- Still, Nederlander has booked secure support that wouldn’t nor- the musical among its audience der the jack boot of successful mili- pressed.” the musical in at least one of its mally go to a commercial presen- while gaining exposure with in- tary regimes,” said Rikki Stein, a other U.S. markets: Chicago. ter of a Broadway show by forging ner-city viewers as a named spon- longtime manager who is also in- collaborations to offset costs, he sor on marketing materials. volved in the production. Aggressive production offer said. And the Wright museum has “This show, although it does en- The production was a natural fit Help with financing For example, WXYZ-Channel 7 is bought out the show the night of tertain … has an underlying mes- with Music Hall’s world music and Paul engaged an executive steer- providing $500,000 in pro bono ad- Feb. 17 at a reduced rate. The mu- sage.” dance programming, said Mar- ing committee composed of Music vertising spots, Clear Channel is do- seum will receive the difference It’s one that seems to resonate garet Selby, president of New Hall board members and local nating $160,000 worth of air time between what it paid and the regu- with local theatergoers. Music York-based Cami Spectrum LLC, a black philanthropists to help meet on its Detroit radio stations and lar retail price the tickets are sold Hall has sold out the first week of division of Columbia Arts Manage- the required financial investment CBS Outdoor donated 10 billboards. for, Paul said. performances at its 1,740-seat hall, ment Inc. working to book the for the musical. “We would never have tried to Sherri Welch: (313) 446-1694, or about one-third of the more “Fela!” international tour. They included: Greg Jackson, afford that kind of coverage,” Paul [email protected]. Twitter: than 41,000 seats available during Music Hall also offered a three- founder of Prestige Automotive in said. Collaborators “understood @sherriwelch

Pontiac: Complicated financing plan lifts loft redevelopment ■ From Page 3 credits backed by Minneapolis- An Anytime Fitness franchisee nanced.” for Westberg as a developer. He is based U.S. Bancorp. has leased 10,000 square feet, and Oakland County has just a co-developing with his brother, Also funding the project is mon- the small, independent Lafayette handful of urban centers, Pontiac Brent, and local investor Jack ey from the Michigan Neighbor- Market will also lease 10,000 square being one of the largest. The city Burket. hood Stabilization Program 2, a feet. has been plagued by political in- Burket has owned the building federal New Markets and Historic Conceptually, there should be stability and has also lost many of since 1987 and has watched it sit Tax Credit, the Michigan Magnet demand for loft-style rentals in its corporate tenants over the vacant for the last three years. On Fund, State Historic Tax Credits Pontiac, said Andrew Hayman, years. the verge of selling it to a ware- and Brownfield Tax Credits. managing partner of Troy-based The local apartment market has housing company, Westberg Westberg said Oakland County Hayman Co., a real estate invest- a vacancy rate of 6.5 percent, ac- pitched the idea of a development Treasurer Andy Meisner was in- Brent Westberg Burket ment and brokerage firm. cording to data from Washington, to Burket. fluential in getting the land bank Hayman Co. has been involved D.C.-based REIS Inc. That’s higher Westberg said he hopes this and NSP funds for the project, and struction. with the leasing and management than the metro Detroit rate of 5.4 project starts some momentum state officials as high up as Gov. “Without those programs, this of Pontiac properties in recent his- percent. for others to follow in Pontiac — Rick Snyder have supported the project wouldn’t work in any com- tory. However, Pontiac’s vacancy perhaps drawing out local corpo- project with incentives. munity,” he said. “You could triple “The concept is plausible: to rate has improved from a three- rate and nonprofit leaders, as Many of the public incentives the rent and still never pay off the draw 20- and 30-year-olds to Ponti- year high of 9.2 percent in the well. are in the form of equity in the pro- debt.” ac,” he said. “But whether it’s fi- fourth quarter of 2009, according Daniel Duggan: (313) 446-0414, ject, and as a result the project will The retail space is already nancially viable is really a matter to REIS. [email protected]. Twitter: have very little debt after con- leased, as well. of the details on how it is fi- This is the first major project @d_duggan 20120130-NEWS--0029-NAT-CCI-CD_-- 1/27/2012 6:50 PM Page 1

January 30, 2012 CRAIN’S DETROIT BUSINESS Page 29 Fielder: Signing doesn’t stretch Ilitch’s dough www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or this season from shared revenues an $8 million investment — and [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- with Major League Baseball’s oth- TIGERS NUMBERS have a $58 million payroll this sea- 0460 or [email protected] er teams, and from its local cable son. They benefit from the National MANAGING EDITOR Jennette Smith, (313) 446- The Detroit Tigers’ overall record under Mike Ilitch’s ownership is 1,369- 1622 or [email protected] deal to air games. Hockey League having a salary cap, 2,643. Here’s a breakdown of average attendance, team record and player DEPUTY MANAGING EDITOR Daniel Duggan, (313) The Tigers get about $40 million payroll since Ilitch bought the team: a cost control absent in baseball. 446-0414 or [email protected] annually from baseball’s Central The team, which has won four SENIOR EDITOR Bob Allen, (313) 446-0344 or 1993: 24,338 (85-77) $36.5M 2003: 17,103 (43-119) $49.1M [email protected] Fund of shared revenue generated Stanley Cups under the Ilitches, WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- by national broadcast rights con- 1994: 20,785 (53-62) $40M* 2004: 23,963 (72-90) $46.8M regularly fills Joe Louis Arena and 8158 or [email protected] 1995: 16,633 (60-84) $35.8M* 2005: 25,306 (71-91) $69M COPY DESK CHIEF Gary Piatek, (313) 446-0357 or tracts and copyright royalties, said its suites and collects revenue [email protected] Andrew Zimbalist, professor of 1996: 14,427 (53-109) $21.9M 2006: 32,049 (95-67) $82.6M*** from the Fox Sports Detroit cable ASSISTANT NEWS EDITOR Jeff Johnston, (313) economics at Smith College and au- 1997: 17,280 (79-83) $16.3M 2007: 37,619 (88-74) $95.1M deal to offset costs. 446-1608 or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, thor of several sports finance 1998: 17,840 (65-97) $22.6M 2008: 39,539 (74-88) $137.6M The family has also committed [email protected] books including May the Best 1999: 25,018 (69-92) $34.9M 2009: 31,693 (86-77) $115M to building a new downtown arena WEB DEVELOPER Steve Williams, (313) 446- 6059, [email protected] Team Win: Baseball Economics 2000: 31,281 (79-83) $61.7M** 2010: 30,385 (81-81) $122.8M for the Wings in coming years, a and Public Policy. project expected to have a $300 mil- WEB EDITOR Gary Anglebrandt, (313) 446-1621, 2001: 24,016 (66-96) $49.3M 2011: 32,617 (95-67) $105.7M*** [email protected] The team gets another estimated lion to $400 million price tag. Fi- EDITORIAL SUPPORT Robertta Reiff (313) 446- $40 million to $45 million annually 2002: 18,795 (55-106) $55M nancial, construction and location 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- from its 10-year deal with Fox Shown in chart form, peaks and valleys in player payroll (orange) and fan plans haven’t been disclosed, but 1687 TIP LINE (313) 446-6766 Sports Detroit to air Tigers games attendance (yellow) show a correlation. it’s believed that the Ilitches will REPORTERS locally, Zimbalist said. have co-investors on any new facil- Daniel Duggan, deputy managing editor: Covers

Financial terms of the Fox Sports ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ity. real estate. (313) 446-0414 or [email protected] Jay Greene, senior reporter: Covers health care, contract were never disclosed, but insurance and the environment. (313) 446-0325 or it is known that the Tigers, Detroit [email protected] The long view Chad Halcom: Covers law, non-automotive Red Wings and Detroit Pistons each manufacturing, defense contracting and Oakland inked decadelong deals with the The spending on the teams is and Macomb counties. (313) 446-6796 or [email protected] network in 2007 and that collective- seen by economists as a way to Tom Henderson: Covers banking, finance, ly they are worth $1 billion. boost long-term value of multiple technology and biotechnology. (313) 446-0337 or [email protected] The estimate of the Tigers’ an- properties. Nancy Kaffer: Covers small business, the city of nual portion approximation is “Given his wealth and his wife’s Detroit and Wayne County government. (313) 446- 0412 or [email protected] based on the number of games they wealth and their myriad business Bill Shea, enterprise editor: Covers media, play, which is twice as many as the interests, it’s quite plausible what advertising and marketing, the business of sports, and transportation. (313) 446-1626 or other teams (162 versus 81). * Strike-shortened season ** Team moved to 41,255-seat Comerica Park he’s doing with the Tigers is maxi- [email protected] Detroit also gets some level of *** Playoff years mizing his wealth portfolio,” Zim- Nathan Skid, multimedia editor. Also covers the food industry and entertainment. (313) 446-1654, revenue sharing from baseball, Source: USA Today payroll database, Crain’s research balist said. “If the Tigers are suc- [email protected] but it’s believed to be a small cessful on the field, if he’s got Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or amount. The more lucrative clubs First baseman superstars playing for him, he [email protected] end up paying into revenue shar- Prince Fielder thinks people will be more likely Dustin Walsh: Covers auto suppliers, steel, higher talked during education and Livingston and Washtenaw ing rather than getting money to gamble, to eat pizza.” counties. (313) 446-6042 or [email protected] last week’s each year. If Fielder is the final ingredient ADVERTISING press conference about joining the the team needs to win a World Se- ADVERTISING DIRECTOR Marla Wise, (313) 446- ries, the team can expect a revenue 6032 or [email protected] Expensive. Very expensive. Detroit Tigers SALES INQUIRIES: (313) 446-6052; FAX (313) and memories of bounce from a boost in season-tick- 393-0997 The Tigers had $192 million in his childhood in et sales, suite sales, new corporate SENIOR ACCOUNT EXECUTIVES: Matthew J. Langan,Tamara Rokowski revenue for the 2010 season, the Detroit. sponsorships, merchandise, etc. ADVERTISING SALES Christine Galasso, Lori most recent estimate available Teams typically raise ticket prices Tournay Liggett, Dale Smolinski from Forbes.com. after winning the Fall Classic, as CLASSIFIED SALES (313)-446-0351 MARKETING DIRECTOR Jeff Kapuscinski The financial news website esti- well, and see increased income for EVENTS DIRECTOR Nicole LaPointe mated that the team lost $29 mil- several years. EVENTS COORDINATOR Kacey Anderson lion in operating income, which it NATHAN SKID/CRAIN’S DETROIT BUSINESS “There are opportunities to cre- SENIOR PRODUCER FOR DIGITAL/ONLINE defines as earnings before interest, ate revenue,” Chris Ilitch said. PRODUCTS Pierrette Dagg MARKETING ARTIST Sylvia Kolaski taxes, depreciation and amortiza- Tigers have borrowed in total and Monaghan, he has spent more than Signing a superstar such as SALES SUPPORT Suzanne Janik, YahNica Crawford tion. Forbes includes revenue how much they still owe. $1.1 billion on play salaries. Fielder is viewed as spending mon- AUDIENCE DEVELOPMENT MANAGER sharing and the cable deal in its The Tigers, as policy, don’t com- Marian Ilitch paid $600 million ey to make money. Candice Yopp MARKETING COORDINATOR Jenny Griffith revenue calculation. ment on their finances. to buy MotorCity Casino from other “Owners bring in big-name play- PRODUCTION MANAGER Wendy Kobylarz That revenue-loss calculation is investors in 2005 and for subse- ers in hopes of increasing ticket PRODUCTION SUPERVISOR Larry Williams against an estimated $150 million Some frugality quent renovations. Revenue to- sales, sponsorships and other rev- CUSTOMER SERVICE in player expenses that included taled $472 million in 2011, a 5.7 per- enue items, so that it can pay for it- MAIN NUMBER: Call (877) 824-9374 or write salaries, bonuses and benefits. The team is saving money in cent increase over 2010, according self. They often do,” said Michael [email protected] SUBSCRIPTIONS $59 one year, $98 two years. The Tigers also have an undeter- 2012 by not re-signing aging out- to revenue figures released by the Rapkoch, president Addison, Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state mined number of other expenses fielder Magglio Ordonez, who was Michigan Gaming Control Board. Texas-based Sports Value Consulting rate for surface mail. Call (313) 446-0450 or beyond player payroll, such as paid $10 million last season but The total financing for MotorCi- LLC. (877) 824-9374. management salaries, game-day who also has broken his ankle the ty is believed to be $950 million That’s how Fielder and the other SINGLE COPIES: (877) 824-9374 REPRINTS: (800) 290-5460, ext. 125; operations and construction debt past two seasons. Also off the pay- through a highly leveraged mix of top-dollar contracts will be paid (717) 505-9701, ext. 125; or lindsay.wilson on 41,255-seat Comerica Park. roll is second baseman Carlos fixed- and variable-rate bank debt for: “It’s going to come from an in- @theygsgroup.com TO FIND A DATE A STORY WAS PUBLISHED: Forbes estimates that the Tigers Guillen, who got $13 million in and junk bonds, according to crease in ticket sales and sponsor- (313) 446-0367 or e-mail [email protected] are worth $385 million and have a 2011. Forbes. ships. That’s where the money is CRAIN’S DETROIT BUSINESS IS PUBLISHED BY 56 percent debt-to-value ratio — or Together, their contracts have Marian also has invested in an going to come from,” Rapkoch CRAIN COMMUNICATIONS INC. $215 million in debt. Some of that the same value as Fielder’s pay ongoing effort by the Southamp- said. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain money is believed to be from non- this season. He also gets $23 mil- ton, N.Y.-based Shinnecock Indian When news of the signing broke SECRETARY Merrilee Crain stadium borrowing, as well. lion in 2013 before the team elevat- Nation to build a casino on Long Is- on Tuesday afternoon, the team TREASURER Mary Kay Crain Executive Vice President/Operations The team borrowed $140 million ed it to $24 million annually over land, which her Gateway Casino Re- was swamped with interest from William A. Morrow in August 2005 from a syndicate of the final seven seasons. There also sorts LLC (with partner Mike Ma- fans, team officials said. Group Vice President/Technology, Manufacturing, Circulation 11 financial institutions, led by are several million dollars in po- lik) would be under contract to For example, the team’s season Robert C. Adams what is now Sumitomo Mitsui Bank, tential bonuses in the deal. operate in return for a portion of ticket staff stayed until 8:30 p.m. Vice President/Production & Manufacturing Dave Kamis to refinance what had been Fielder was signed to replace the the gaming revenue. on Tuesday handling calls, said Chief Information Officer $115 million remaining in debt offensive production lost when The casino ownership is sepa- Dave Dombrowski, Tigers presi- Paul Dalpiaz from the original $145 million loan designated hitter Victor Martinez rate from Mike Ilitch because of dent, CEO and general manager. Director of Audience Development Operations Michelle Roth to build Comerica Park. was lost for the year to an offsea- baseball’s rules prohibiting team Mike Ilitch, 82, said he had no G.D. Crain Jr. Founder (1885-1973) The team also has borrowed son knee injury two weeks ago. owners from having investments qualms about investing so much Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: from the Major League Baseball Martinez’s $13 million salary in gambling operations. money in a single player, giving 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Trust. this season is expected to be cov- The Ilitch family has other him the most lucrative contract in 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET Teams can borrow from the ered at least in part by the team’s sources of income, such as con- Detroit sports history. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 $1.2 billion credit facility, which is insurance policy. certs and events via their Olympia “I go by my instincts like every- is published weekly, except for a special issue the third week of August, and no issue the third week backed by baseball’s TV revenue, Entertainment Inc. business, a food body else does in business, and my of December by Crain Communications Inc. at at better terms than may be avail- distribution and restaurant equip- instincts told me this is going to 1155 Gratiot Ave., Detroit MI 48207-2732. Rich. Very rich. Periodicals postage paid at Detroit, MI and able to them on the open market. ment service and three movie the- work out just fine,” Ilitch said. “I additional mailing offices. POSTMASTER: Send The Ilitches have not hoarded aters. They also have a concession address changes to CRAIN’S DETROIT BUSINESS, In 2005, Detroit had borrowed don’t have any concerns. I’m not Circulation Department, P.O. Box 07925, Detroit, $73 million from the lending pool, their substantial fortune. to manage parking garages and nervous about it.” MI 48207-9732. GST # 136760444. Printed in Sports Business Journal Since Ilitch bought the team in lots in downtown Detroit. Bill Shea: (313) 446-1626, U.S.A. reported Entire contents copyright 2012 by Crain at the time. Neither the team nor August 1992 for $85 million from The Ilitches have owned the De- [email protected]. Twitter: Communications Inc. All rights reserved. Reproduction or use of editorial content in any baseball will say how much the Domino’s Pizza Inc. founder Tom troit Red Wings since 1982 — only @bill_shea19 manner without permission is strictly prohibited. 20120130-NEWS--0030-NAT-CCI-CD_-- 1/27/2012 6:30 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS January 30, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 21-27

pairing damages. ment, according to a state- than 5 percent, and 21 per- No word on when the Startup Michigan ment by St. John Providence cent said the sales de- film will see a local release. Health System, its Warren- creased 5 percent or more. Gilbert packs based owner. The National Retail Federa- launches to help tion reported a 4.1 percent Local attorney named to increase nationwide. federal safety commission entrepreneurs OTHER NEWS After seven years of federal control, the Detroit a punch into Marietta Robinson, owner The U.S. Department of cott Case, founder of Veterans Affairs announced Housing Commission will re- of the Lake Orion-based turn to local governance, of- Law Office of Marietta S. the travel website plans to bring the National S Priceline.com, will Veterans Small Business Con- ficials with the U.S. Depart- Robinson and widow of for- ment of Housing and Urban mer U.S. Attorney James launch Startup Michigan on ference and Expo, including virtual retail Tuesday at the annual Col- a hiring fair, to Cobo Center Development and Detroit Robinson of Detroit, was laboration for Entrepre- in June. Mayor Dave Bing said. Under f the famed Joe Louis buy.com expected to be fea- nominated last week by neurship event in Ann Ar- Attorney General Bill a transition plan, the city “fist” sculpture jutting tured soon. President Barack Obama to bor. Startup Michigan will Schuette said the state will finalize appointments I out on Jefferson Av- fill a vacancy on the five- be an affiliate of the Startup should use part of its ex- to the commission’s board, enue were to offer some- member federal Consumer America Partnership, which pected budget surplus to but the commission will op- thing to Detroit, what Does Detroit film Product Safety Commission. provides would-be entre- hire at least 1,000 law en- erate in compliance with an would it be? Robinson, also a fellow of succumb to the preneurs access to service forcement officers, The As- oversight agreement to Racial equality? An end the International Society of providers, mentors, fund- sociated Press reported. which HUD and the city are to political divisiveness? A ‘blight temptress?’ Barristers and the organiza- ing sources and potential A report from the non- parties. The board won’t resolution to the region’s tion’s first female presi- We at Crain’s haven’t customers. It has eight re- partisan Citizens Research take full control of the com- economic woes? dent in 2010-11, awaits con- seen the documentary “De- gional affiliates now and Council of Michigan says a mission until the end of the How about a watch? firmation before the Senate tropia” yet — it debuted will add 10 more Tuesday. 1998 state law requires De- transition period. In a move to bring the to take over the seat vacat- last week at the Sundance Case is CEO of Startup troit to cut its income tax Detroit will play host hot trend of “virtual retail” ed by fellow Democrat Film Festival — but we’ve America. rates starting July 1 unless for the 2012 TEAMS Confer- to Detroit, Quicken Loans Thomas H. Moore. been watching reviews roll Startup Michigan will in- the Legislature waives or ence and Expo, a confer- Inc. founder Dan Gilbert has The appointment, if ap- in. Mostly, filmmakers Hei- clude Troy-based Automa- changes the law, the Detroit ence of sports event orga- installed a series of decals proved, would restore a De- di Ewing and Rachel Grady, tion Alley, the Ann Arbor- Free Press reported. Detroit nizers, Oct. 1-4 at Cobo on the windows of two re- mocratic majority to the whose previous efforts in- based Great Lakes sought a waiver from a state Center. The Detroit Metro cently purchased buildings commission. clude the documentary “Je- Entrepreneur’s Quest, the administrative board in De- Convention & Visitors Bureau at 1520 and 1528 Woodward She is a trial attorney of sus Camp,” are getting Ann Arbor-based Michigan cember but was denied. also announced it has Ave. to boost retail. 33 years and was a Democ- good notices. Venture Capital Association The 2012 Charity Pre- booked additional events at One of the arrays fea- Unless you check in with ratic Party nominee to the Cobo for 2013-15. Michigan Supreme Court in and Detroit-based Bizdom U. view of the North American tures a massive decal of locals. International Show drew The Cranbrook Institute “The Fist” with 47 watches Eric Proulx writes in Huff- 2000. of Science and Detroit Public Robinson also served 12,000 people, up from on its wrist and forearm. ington Post Detroit that the ON THE MOVE 10,600 last year, and netted Schools have forged an Passers-by can scan the filmmakers have suc- eight years in a federal ap- agreement under which Susan Froelich is step- $3 million, show organizers watches with a smartphone cumbed to the “blight pointment to the board of Cranbrook will provide ping down as president of said, up from $2.6 million to get a prompt for pur- temptress.” the Dalkon Shield Claimants DPS students, their fami- The Arts Alliance in Ann Ar- last year. Proceeds will be chasing the items through A clip of the film posted Trust, which disbursed over lies and teachers with in- bor to spend more time split among nine local chil- their phones. online seems to bear out $2.4 billion to more than depth, hands-on exposure with family. An interim dren’s charities. The images, produced by that claim. 300,000 users of an in- to science and technology. president has not been cho- The Oakland County’s Gilbert-owned Fathead LLC, The clip features scrap- trauterine contraceptive Students at two com- sen. Medical Main Street program were created by Detroit- pers, groups of young men device sold by A.H. Robins munity colleges can com- Think Detroit PAL has got commitments from 14 based Resultco, the compa- who scavenge scrap metal Co. in the 1970s. plete degrees in product de- named COO Tim Richey as companies to invest a com- ny that manages the virtu- from abandoned buildings Her late husband was sign and development at CEO. He had been interim bined $185.2 million and al retail operation. — and, of course, utility U.S. attorney in Detroit for Eastern Michigan University, CEO since Nov. 1 after add or retain nearly 1,500 Virtual retail is new to lines, vehicles and other- three years and later was under an agreement involv- Michael Porter left for health jobs — more than triple the Detroit but has been used wise saleable homes. dean of the Wayne State Uni- ing EMU, Monroe County reasons. investment of the three pre- around the country as part The messages the film versity Law School from 1993 vious years combined. Community College and Ma- of the explosion of smart- clip sends are mixed: In an to ’98. He died of cancer in Detroit City Council comb Community College. phone use. Typically, introduction posted with 2010. COMPANY NEWS President Charles Pugh says The state says it has re- movie theaters have used the clip, the filmmakers de- he won’t seek another term ceived federal approval to Farmington Hills- the format. scribe scrappers almost on the council but may run build an elevated ramp that BITS & PIECES based Beringea LLC is ex- The format will expand like creative entrepre- for mayor or another office. will take trucks directly to pected to announce today to other Gilbert-owned neurs, making a living the N.A. Mans & Sons, Can- AP reported. interstates from Detroit’s that it has joined with San buildings, such as the First best way they can in a ton Township and Trenton, A letter from Gov. Rick Ambassador Bridge, AP re- Jose, Calif.-based Western National Building and the crumbling city. was named Entrepreneur Snyder to parents of children ported. The job could be Chase Tower. But locals know that said of the Year by Technology Investment in a completed by Memorial Day. venture capital round of $7 in the Highland Park Public The retail lineup will ex- scrappers are responsible lumber/building industry Schools warns that without Michigan motorists pand as well, with for horrendous property publication LBM Journal, million for Relume Technolo- would be asked to pay gies Inc., an Oxford-based state intervention, the dis- Expedia.com, Match.com, damage, not to mention in- for companies between $10 about 9 cents more in gas- maker of outdoor LED trict could close by the end Shoebuy.com, creases in utility rates million and $50 million in related taxes per gallon, lighting. Beringea will in- of February, AP reported. Clothesbuy.com and Bag- caused by the costs of re- sales. and annual vehicle regis- vest $3.2 million from the A coalition fighting tration fees would climb an $75 million it manages in proposed changes to Michi- average of 67 percent, or the state’s $300 million In- gan’s auto insurance laws vestMichigan fund. filed a lawsuit seeking roughly $60 per vehicle, un- Warren-based Gardner- claims information from an der a package of bills that White Furniture Co. Inc. will association that handles would raise an estimated $1 BEST FROM THE BLOGS relocate its headquarters medical bills for seriously billion more each year for injured accident victims, the state’s roads and READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS and a distribution center this year to a recently pur- AP reported. The suit, filed bridges, AP reported. chased Auburn Hills build- in Ingham County by the Notable move to Butzel Long Pistons’ valuation declines ing that used to house Ryder Coalition Protecting Auto No- Fault, comes after the Michi- OBITUARIES Detroit-based Kotz, When Tom Gores bought Integrated Logistics Inc. Sangster, Wysocki and the Detroit Pistons, the St. Joseph Mercy Oak- gan Catastrophic Claims Asso- Marvin Danto, founder Berg is expected to market dictated a land Hospital will open an ciation denied a Freedom of and owner of the Michigan change its name shortly seemingly low $325 urgent-care center in Information Act request, Design Center in Troy and after name partner million. Gores’ steal, and White Lake Township on saying it isn’t subject to the donor of $3 million to Frederick Berg departed the team’s harsh Feb. 6, adding to those it law because it is a private Wayne State University for his firm to become a economic reality, now has in Birmingham, Lake organization. what became the Marvin shareholder at Butzel are reflected in the Orion and Waterford The latest Michigan Re- Danto Engineering Develop- Long PC. The move could annual team valuations Township. tail Index found that 53 per- ment Center, died Jan 24. He add sizable business to published by Forbes. was 95. the recovering Butzel. Brighton Hospital has cent of state retailers re- changed its name to the ported an increase of more Stephen Metzler, man- Reporter Chad Halcom’s blog on the legal business Reporter Bill Shea’s “Shea’s Stadium” blog on the Brighton Center for Recovery than 5 percent in holiday aging partner of CPA firm can be found at www.crainsdetroit.com/halcom business of sports can be found to better reflect its special- sales, while 13 percent said Metzler Locricchio Serra and at www.crainsdetroit.com/sheasstadium ty of substance-abuse treat- holiday sales increased less Co., died Jan. 25. He was 59. DBpageAD.qxp 1/25/2012 2:53 PM Page 1 DBpageAD.qxp 1/3/2012 1:32 PM Page 1

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