DETROIT BUSINESS MAIN 07-02-07 A 1 CDB 6/29/2007 6:34 PM Page 1

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http://www.crainsdetroit.com Vol. 23, No. 27 JULY 2 – 8, 2007 $2 a copy; $59 a year

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Silicon Valley Bank to invest up to $7.5M Biz tax done, but in Renaissance VC fund firm picks Ann Rebecca Smith, president of the Troy-based eastern region of Huntington Bank, will announce today that Arborforoffice the bank is making the first debate isn’t over institu- BY TOM HENDERSON tional in- CRAIN’S DETROIT BUSINESS vestment in a $100 Barracuda Networks Inc., a fast-growing Some are still unclear on its effects million Silicon Valley company that provides anti- BY AMY LANE Department of Treasury gears up to administer the venture- spam and anti-virus software for business- CAPITOL CORRESPONDENT tax, and accountants and lawyers pore over de- capital es, has opened an engi- tails in the tax passed last week. fund an- neering and software- LANSING – The dust may be settling on nounced development office in Michigan’s newly minted business tax, but ac- The Michigan Association of CPAs, for example, last downtown Ann Arbor tivity — and debate — is by no means over. has been in continual communication with its Smith month by and hopes to employ up As the new Michigan Business Tax heads to members and is developing a way for CPAs to Detroit Renaissance Inc. to to 60 engineers and de- Gov. Jennifer Granholm’s desk, business inter- submit questions on its Web site, with respons- spur innovation and help velopers there within ests are looking at what needs es provided by knowledgeable CPA tax volun- two years. emerging companies grow. to be addressed in the coming teers. Upcoming conferences will also focus on Barracuda was found- The bank will invest up months, from legislation to ed in 2003 by president the issue, as will workshops and sessions to $7.5 million. The first $5 correct perceived tax in- and CEO Dean Drako, a throughout the summer and fall, and the associ- million is contingent on the Drako equities, to clarification and 1987 electrical engineer- ation is looking at creating programs to which fund raising $50 million. interpretation of how the new ing graduate of the University of Michigan. It tax will unfold. member CPAs can bring clients, said Peggy The remaining $2.5 million now employs about 300 and claims to have Dzierzawski, president and CEO. will be given when the fund “I have one member who more than 40,000 customers in more than “We’re working on this continuously. This is hits $75 million. has other facilities, compa- 80 countries. nies that they own outside the something … that we’ll spend a lot of time on, Renaissance officials Drako said he opened the Ann Arbor of- state, that sell into the state. and make sure that we try to touch every mem- hope to complete raising fice, at 912 S. Main St., on June 20 to ease Hadden And they have two different ber,” she said. “Every CPA needs to know about money for the fund, a so- recruiting by being close to a large pool of fiscal years on those two companies, and those it, and wants to know about it.” called “fund of funds” that talent, many of whom might prefer to stay two fiscal years are different than the state’s fis- Treasury plans to use its Web site as a central will invest in other ven- in Michigan if they could find a good job. cal year or when the tax takes effect, which is repository of information, and will be conducting ture-capital funds and not “We’re having trouble recruiting people the end of the year,” said Chuck Hadden, vice in individual companies, to maintain our growth. We felt it was pru- president of government affairs for the Michigan roundtables and work with business and tax-pro- during the first quarter of dent to open a second office,” Drako said. Manufacturers Association. “So they just aren’t fessional groups like the CPA association, said 2008. They hope to surpass “I’d lived in Ann Arbor and I knew the en- quite sure when they pay.” Terry Stanton, public information officer. their minimum target and See Barracuda, Page 20 Such details will be ironed out as the Michigan See Tax, Page 21 raise as much as $150 mil- lion. “This is a perfect exam- ple of corporate leadership ... and I think it will come home to roost for them,” said Oakland County Exec- utive L. Brooks Patterson. Northwest’s unfriendly skies Oakland County had con- sidered a similar fund be- fore joining its efforts with Travelers make own travel plans Detroit Renaissance. “They’re making a bet on BY ANDREW DIETDERICH I retain control and the region,” said Detroit CRAIN’S DETROIT BUSINESS have no headaches Renaissance President wondering if I’ll be Doug Rothwell. “The unwrit- Kimberly MacAdam is changing the able to make my 9 a.m. ten story is that while the way she makes her monthly trips to Buf- meetings the next domestic auto industry is falo, N.Y., and Pittsburgh because of day,” MacAdam said. going through restructur- problems at Northwest Airlines Corp. Northwest said late ing, there are other sectors The sales consultant said she would Friday in a release that are growing and offer rather make the roughly four-and-a-half- that thunderstorms, an opportunity. This is not hour drive to both destinations than de- air control congestion a charitable fund. It’s a for- pend on Northwest. MacAdam and pilot absenteeism profit fund, and it’s good to On June 18, MacAdam was to make a were to blame. Absen- see they think they can one hour flight from Pittsburgh to De- teeism was 80 percent higher in June NEWSCOM make a profit here.” troit at 5:05 p.m. After numerous delays, 2007 than in June 2006. CHECK YOUR FLIGHT AT OUR SITE the plane took off at about 2:30 p.m. the Many companies said it’s too early to — Tom Henderson next day. She missed three meetings. tell if they’ll adjust to the problems. But To check the status of any flight, you can use the new widget on our Web site at www.crainsdetroit.com/flights, courtesy of She’s going to be driving from now on. See This Just In, Page 2 Flightstats.com. “It’s 4.5 hours to both places by car but See Flying, Page 22

Waterfront living CRAIN’S LISTS appeals to young and Largest home builders, Page 10 NEWSPAPER old, Page 13 Largest office furniture dealers, Page 16 DETROIT BUSINESS MAIN 07-02-07 A 2 CDB 6/29/2007 6:46 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS July 2, 2007

Soccer center breaks ground buy membership in the other for for leave to appeal, ending the troit Regional Economic Partnership, THIS JUST IN Construction will begin today $150. seven-year legal battle, partner- Detroit Renaissance President in Pontiac on what’s being billed This will allow businesses to ship attorney H. Adam Cohen of Doug Rothwell said in the an- ■ From Page 1 as the largest indoor soccer facili- receive networking and advertis- Birmingham-based Steinhardt, nouncement. ty in North America. ing benefits in the other cham- Pesick & Cohen P.C., said. The $34 The findings of the study will United Way taps Turner Ultimate Soccer Arenas L.L.C. ber’s market at a reduced cost, million includes interest, costs be completed this fall, he said. said Thursday it will break Detroit Chamber Chairman Den- and attorney fees, Cohen said. Site location factors to be com- to lead board of directors ground on a $15 million, 266,000- nis Archer said. — Robert Ankeny pared include: Operating costs, United Way for Southeastern square-foot climate-controlled More information is available regulatory climate, economic-de- from either chamber. velopment effort, image, business Michigan’s board of directors has building at 867 South Blvd. It will — Robert Ankeny Study to benchmark business infrastructure and workforce. elected Reginald Turner, a member include three large fields, all of — Robert Ankeny of Clark Hill plc, chairman of its which can be broken down into climate in SE Michigan board. smaller fields. The fields will City to pay $34M for land Detroit Renaissance Inc. an- He is the first African-Ameri- have turf two-toned to simulate nounced Tuesday that it has AT&T to spend $34M on wireless The city of Detroit must pay can to hold the position in the European soccer pitches. hired Arlington, Va.-based Busi- $34 million to Detroit Plaza L.P. for agency’s 90-year history, it said The fields are intended for ness Development Advisors to operations in SE Michigan 6.3 acres of east riverfront prop- in a release. recreational, club and team soc- benchmark how the Southeast AT&T Inc. plans to spend $32 mil- erty that the city took by condem- Turner replaces DTE Energy Co. cer Michigan business climate com- lion this year in Southeast Michi- nation in September 2000 for the Chairman and CEO Anthony Earley Other features slated for the fa- pares to key competitor regions gan on its wireless operations. failed casino district. The limited Jr., who served as chairman from cility include a strength, speed on site-location factors that busi- The company’s plans include and agility training center, a pro partnership includes James Blain, April of 2005 through May of this nesses use to decide where to in- expanding its mobile wireless shop, party rooms, arcade, coach- a Livonia-based architect; Jerry year. vest. broadband network and building es lounge, locker rooms, a full- Luptak, a Bloomfield Hills attor- — Sherri Begin The study is aimed at identify- new cell sites. The expansions service restaurant, a European ney; Harold Beznos, a Farmington ing possible changes to make come in the wake of last Octo- coffee shop, a candy and ice Hills lawyer and real estate devel- greater Detroit more competitive, ber’s launch of the company’s Accounting firms to merge cream shop and a second-story oper; and Ron Slavik, chairman of and is being coordinated with the new mobile wireless broadband viewing deck for all fields. the board and president of The The merger of two local inde- Detroit Economic Growth Corp. and service in the Detroit area. Fourmidable Group pendent accounting firms, Bing- , Farmington the Detroit Regional Chamber’s De- — Amy Lane ham Farms-based Maddox Ungar Detroit, Windsor chambers Hills. P.L.L.C. and Farmington Hills- The owners, who once planned ORRECTION based Ronald N. Silberstein CPA offer dual membership to put a riverboat casino at the C P.L.L.C., will be announced today. The Detroit Regional Chamber site, turned down the city’s com- Ⅲ In a story on Page 3 of the June 25 issue of Crain’s, idiopathic pul- The combined firm will be known and the Windsor & District Chamber pensation offer of $13.7 million monary fibrosis was incorrectly identified as Wilson’s Disease and the as Maddox Ungar Silberstein P.L.L.C. of Commerce have begun a joint and filed a condemnation law- story incorrectly stated that Wilson’s Disease kills 128,000 annually. and will operate out of Maddox membership program allowing suit. A Wayne County Circuit Court The article should have said IPF kills 128,000 annually. The article also Ungar’s current headquarters. small businesses that belong to jury awarded the partnership $25 incorrectly said Wilson’s Disease affects the lungs. It affects the liver. With Silberstein’s four employ- one organization to gain benefits million after an April 2004 trial. Ⅲ A Briefly item on Page 6 of the June 25 issue identified an incor- ees, the combined firm will em- from the other. The Michigan Court of Appeals up- rect buyer for the former Parkway Chrysler Plymouth Jeep site in Clinton ploy 14. Small businesses of less than held that decision last December. Township. The correct buyer is Gratiot Manchester Development L.L.C., No terms will be announced. 100 employees who belong to one The Michigan Supreme Court on an entity formed by Orchard Lake developer James George, principal — Tom Henderson of the chambers will be able to Tuesday denied the city’s request of The George Group.

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July 2, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S There’s no place INDEX Ready for Act Two: ArvinMeritor CEO takes path to stability, growth. like home for Page 5. PHOTO COURTESY OF COLLEGE FOR CREATIVE STUDIES David Gresham says the new program will familiarize students with how design fits into the fabric of business.

Gearing up for a down market: Builders seek CCS to offer DCX Financial niche audiences to counter downturn. Page 11. Cross-town move keeps workers here These organizations appear in this grad programs week’s Crain’s Detroit Business: BY BRENT SNAVELY DaimlerChrysler Adkison, Need & Allen P.L.L.C. . . . . 15 CRAIN’S DETROIT BUSINESS Financial Albert Kahn Associates Inc...... 11 Ann Arbor Spark...... 20 Services After considering Dallas, Chicago, Mont- Archdiocese of Detroit ...... 6 Americas’ new with biz slant vale, N.J., and locations throughout metro ArvinMeritor...... 5 location. Autoweb...... 6 Detroit, DaimlerChrysler Financial Services BY SHERRI BEGIN Barracuda Networks Inc...... 1 Americas L.LC. is moving just five miles to Belmar Development Group ...... 14 CRAIN’S DETROIT BUSINESS BlackFinn Restaurant & Saloon . . . 15 another building in Farmington Hills. Carlson & Associates ...... 22 The College for Creative Studies is designing its first two The overriding reason for staying in Center for Automotive Research . . . 22 graduate programs with business in mind. Michigan: The concern a Cerberus Capital Management L.P.. 22 Chrysler Financial...... 3 CCS is talking with the University of Michigan’s Stephen M. move to another state CMS Energy Corp...... 6 Ross School of Business and one other unnamed school, hop- would trigger the loss of College for Creative Studies ...... 3 ing to tap their faculties to teach business courses to CCS many valuable employ- Comerica Bank ...... 12 ees. Consumers Energy Co...... 7 graduate students. Crain Communications ...... 21 The private, four-year college plans to begin offering a “It was crucial for us AT A GLANCE DaimlerChrysler Financial Services that we do not lose any Americas L.L.C...... 3 master of fine arts in design and a master of fine arts in Berlin, Germany-based DaimlerChrysler talent. And if we would Denso International America Inc. . . 13 transportation design in fall 2008 with an enrollment of Financial Services and Chrysler Financial Detroit Diesel Corp...... 5 move outside of the state about 30 students. must split apart because of the pending Detroit Edison Co...... 7 we would lose a lot of the Detroit Local Initiatives ...... 13 The new programs will incorporate a greater apprecia- acquisition of Chrysler Group by Cerberus talent,” said Klaus En- Capital Management L.P. Detroit Regional Chamber...... 21 tion, understanding and teaching of the principles of busi- Entenmann Detroit Renaissance Inc...... 1 tenmann, president and As of today, the company has a global loan and Edward Surovell Realtors ...... 12 ness, said David Gresham, director of graduate studies at CEO of DaimlerChrysler Financial Ser- financing portfolio of about $150 billion. Its Engineering Society of Detroit...... 6 CCS. vices Americas. Farmington Hills-based America’s division, Esquire Properties ...... 14 “Industry is looking for people (who) can come out of Federal-Mogul Corp...... 5 As first reported by Crain’s in June, called DaimlerChrysler Financial Services Fourmidable...... 14 school with a little greater understanding of design as a DaimlerChrysler Financial Services plans Americas L.L.C., employs about 5,300, serves GMAC Financial Services ...... 22 strategic tool and how it fits into the fabric of business,” he both North and South America and manages Hunter Pasteur Homes ...... 12 to move about 400 people from its current Jefferson Beach Marina ...... 14 said. headquarters at 27777 Inkster Road to a new the following $102.7 billion loan and financing portfolios: Johnson Controls Inc...... 5 “It’s not that we’re going to turn these folks into MBAs location at 36455 Corporate Drive in Farm- Kojaian Cos...... 22 ■ in two years … but we can at least familiarize them with ington Hills. Chrysler Financial: $73.5 billion Landry + Newman Architecture . . . . 22 ■ Mercedes-Benz Financial: $19.1 billion LaSalle Bank ...... 12 how business works.” About 800 people who work for Chrysler Fi- Leo Burnett Detroit...... 20 CCS currently offers undergraduate degrees in 11 stu- nancial will stay in the Inkster Road offices. ■ DaimlerChrysler Truck Financial: $9.9 billion McCann-Erickson ...... 20 dio-based fine arts majors and plans to invest more than $1 ■ Other: $200 million McGregor Fund ...... 21 “Also, we need to hire people. … and Michigan Association of CPAs...... 1 Source: DaimlerChrysler Financial Services Americas L.L.C. See Degree, Page 21 See DCX Page 22 Michigan Bankers Association . . . . 21 Michigan Chamber of Commerce . . 21 Michigan Economic Dev. Corp. . 20, 22 Michigan Infrastructure & Transportation Association ...... 21 Michigan Insurance Coalition . . . . . 21 Michigan Manufacturers Association 1 Miller, Canfield, Paddock & Stone . 21 Northwest Airlines Corp...... 1 Orchid Development Inc...... 11 Plante & Moran ...... 19 Pollard Banknote ...... 20 Building battle Pulte Homes Inc...... 12 Re/Max Classic ...... 12 Robertson Bros. Co...... 11 Saperstein Associates ...... 14 SDE Business Partnering L.L.C...... 6 County wants out of lease, but could end up owning Skillman Foundation...... 6 St. John Community Health...... 6 Thomas Hospitality Group ...... 15 BY ROBERT ANKENY rent, upkeep and repairs over the past University of Michigan ...... 1 CRAIN’S DETROIT BUSINESS 20 years. Wayne County sold the 105- University of Michigan ...... 3 A June 22 letter to the partnership year-old building in 1986 to Old Wayne County Economic Wayne County Building L.P., Development Corp...... 22 Wayne County’s rent dispute with sent by Wayne County Corporation Wayne State University ...... 13 but continued as a tenant. its downtown landlord may be a pre- Counsel Edward Thomas said the Whitter Interiors...... 14 lude to negotiations to regain owner- Zoup! Fresh Soup Co. L.L.C...... 15 county does not intend to renew its Zukey Lake Tavern ...... 15 ship of the Old lease, which expires Oct. 31, and that Wayne County the partnership is obligated to pay $31 Building. million still owed on the 1986 purchase. BRIEFLY ...... 6 Wayne County The debt stems from a nonrecourse BUSINESS DIARY ...... 19 sold the 105-year- note, county officials said, meaning CAPITOL BRIEFINGS . . . . . 20 old building at 600 there are no personal guarantees, and CLASSIFIED ADS...... 17 KEITH CRAIN ...... 8 Randolph in 1986 the debt is secured only by the building LETTERS ...... 8 to Old Wayne Coun- itself. That means if the parties agreed ty Building L.P., OPINION ...... 8 the money is owed, one option would OTHER VOICES ...... 9 headed by Burt be to turn the building back to the PEOPLE ...... 7 Farbman, chair- county. RUMBLINGS...... 23 man of the South- Michael Layne, of Farmington Hills- WEEK IN REVIEW ...... 23 field-based Farb- Ficano based Marx Layne & Co., who represents man Group, but continued as a tenant. the partnership, had no comment on CALENDAR But Wayne County Executive Robert the county’s demand for payment of For a list of current events, visit Ficano said last week county taxpayers www.crainsdetroit.com. have paid more than $100 million in See Building, Page 22 AARON HARRIS DETROIT BUSINESS MAIN 07-02-07 A 4 CDB 6/29/2007 7:06 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS July 2, 2007 TAKING STOCK We think NEWS ABOUT DETROIT AREA PUBLIC COMPANIES outside the cube. Auto-related stocks fare better, At INTERIOR DYNAMICS, we understand there has to be just the right “fit” of the critical elements that make a perfect office environment. From concept to completion, our award-winning teams think outside the cube to financial stocks suffer for 2Q successfully combine the right office components. We do it for companies big and small...no matter the size of their budgets. We cover it all... interior consulting systems and executive furnishings BY TOM HENDERSON project management floor coverings installation CRAIN’S DETROIT BUSINESS QUARTERLY WINNERS AND LOSERS architectural products maintenance and more. Struggling financial stocks So, first get a phone. Then call us at 800.935.3962. caused public companies in South- For complete chart of quarterly results, see www.crainsdetroit.com east Michigan to trail the Standard & Poor’s 500 for the second quar- THIS WEEK’S STOCK TOTALS: 32 GAINERS, 46 LOSERS, 3 UNCHANGED ter. 6/29 3/29 PERCENT CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE But in a sharp turnaround from 2006, stock prices for auto manu- 1. Amerigon Inc $17.99 $12.45 44.50% We think outside the cube. facturers and suppliers were up. 2. Covansys Corp 33.93 24.68 37.48% 3. Compuware Corp 11.86 9.49 24.97% 1742 crooks road troy MI 48084 Of the 32 public companies in Southeast Michigan to show an in- 4. Caraco Pharmaceutical 15.18 12.18 24.63% t 800 935 3962 t 248 244 8910 www.interiordynamics.com crease in share price for the quar- 5. General Motors Corp 37.80 30.64 23.37% ter, 12 were auto-related. On the 6. Kaydon Corp 52.12 42.56 22.46% list of 78 public companies in the 7. Noble International Ltd. 20.44 16.78 21.81% region compiled by Crain’s, two re- 8. ArvinMeritor Inc 22.20 18.25 21.64% mained the same and 44 showed a 9. Veri-Tek International Corp 7.94 6.63 19.76% decline. 10. Ford Motor Co 9.42 7.89 19.39% “Year-to-date, we’re ahead of the 6/29 3/29 PERCENT S&P, but quarter-to-date, we defi- CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE nitely lagged,” NOW LEASING corporate center 1. Domino's Pizza Inc. $18.27 $32.47 -43.73% NOW LEASING said David 2. Rockwell Medical Technologies 5.50 6.80 -19.12% Sowerby, portfo- 3. Universal Truckload Services 19.87 24.21 -17.93% lio manager and 4. Citizens Republic Bancorp Inc. 18.3 22.16 -17.42% chief market an- 5. Pulte Homes Inc. 22.45 26.46 -15.15% alyst in the 6. Kelly Services Inc. 27.46 32.20 -14.72% Bloomfield Hills 7. Taubman Centers Inc. 49.61 57.99 -14.45% office of Loomis, Sayles & Co. L.P. 8. North Pointe Holdings Corp. 10.33 12.00 -13.92% He tracks 80 9. Syntel Inc. 30.39 34.65 -12.29% public compa- 10. FNBH Bancorp Inc. 23.10 26.20 -11.83% Sowerby nies statewide. Source: Bloomberg News. From a list of publicly owned companies with headquarters in “Year-to-date, Michigan stocks Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading at are up 6.7 percent versus 6.2 per- less than $5 are not included. cent for the S&P. But for the quar- ter, the S&P is up 6 percent and Capital Corp. led the state’s finan- that has benefited by all the lever- Michigan stocks are up just 2.7 cial stocks, up more than 14 per- age buyouts.” 25200 Northwestern Hwy. percent,” he said. cent to $17.70. Southfield-based “The auto companies really did Southfield, Michigan The Crain’s list showed an aver- First Mercury Financial Corp. was up well. They had some very nice For More Information, Please Call: more than 2 percent to $20.97, • 195,000 Square Foot Building age decline of about 3.5 percent. gains. Very impressive gains,” Troy-based Flagstar Bancorp Inc. • Soaring 5-Story Atrium 248.324.2000 The reason for the major variance Johnson said. “Investors are see- was up nearly 1 percent to $12.05, • Recently Renovated Common Areas from Sowerby’s average is that ing a turnaround and a brighter fu- and Detroit-based Comerica Inc. • Easy Access to Major Freeways Crain’s list includes a handful of ture, and I’d like to think it’s true. penny stocks that showed a large was up about 0.6 percent to $59.47. • Abundant, Close Proximity Parking “I think it is likely to be true. percentage decline, such as Farm- Losers included Dearborn Ban- www.friedmanrealestate.com There’s been a lot of time spent go- ington Hills-based CruiseCam Inter- corp Inc., off more than 3 percent to national Inc., off about 44 percent to $16.95; Southfield-based North ing through this restructuring. It’s 3 cents; Southfield-based Collins & Pointe Holdings Corp., off 14 percent encouraging because most of the Aikman Corp., off about 64 percent to $10.33; and Flint-based Citizens difficult economic conditions to 2 cents and Novi-based Tower Au- Republic Bancorp Inc., coming off we’ve been going through are di- tomotive Inc., off about 73 percent to the recent merger with Ann Arbor- rect and indirect results of the 2 cents. based Republic Bancorp Inc., off auto sector.” Sowerby’s list also includes more than 17 percent to $18.30. Tech stocks did well in the quar- stocks outside the Detroit area “It’s very evident that the finan- ter, too. that did well, such as Tecumseh cial institutions, with a couple of Farmington Hills-based Covan- Products Co., up nearly 60 percent; exceptions, really did have a diffi- sys Corp. was the tech leader and cult quarter. The financial stocks Benton Harbor-based Whirlpool second among area stocks, up Corp., up more than 30 percent; and got beat up, and that’s a national more than 37 percent to $33.93, its Grand Rapids-based Spartan Stores trend, as well,” said Dana John- share price bolstered on the re- Inc., up about 24 percent. son, chief economist and senior The anchor on stock prices was vice president at Comerica Bank. cently approved sale to California- financials, Sowerby said, which “People are sensing there are some based Computer Sciences Corp. were down 5.2 percent in the quar- credit issues.” Detroit-based Compuware Corp., ter. Nationally, financials were up The top 10 stocks included sever- in the midst of a high-profile cost- 2.2 percent. al automotive-related companies, cutting campaign, was third re- “At the national level, financials including Northville-based Ameri- gionally, up 25 percent to $11.86; were weak, but capital-markets-re- gon Inc., which was up more than Plymouth-based Rofin-Sinar Tech- lated stocks held up well. Goldman 44 percent to $17.99 to lead all 78 re- nologies Inc. was up nearly 17 per- Sachs was a poster child for that, gional stocks. cent to $69, and Plymouth-based up 6.1 percent,” Sowerby said. Others automotive-related top Perceptron Inc. was up nearly 10 General Mo- “But we don’t have any capital- performers included percent to $9.89. markets stocks. We have more tra- tors Corp.; Warren-based Noble In- Five penny stocks had larger ditional community banks which ternational Ltd.; Troy-based Arvin- percentage declines, but Ann Ar- were impaired by interest rates. Meritor Inc.; and Ford Motor Co. You saw long-term interest rates “Autos, which were left for dead bor-based Domino’s Pizza Inc. was move up in the quarter, with the at the end of 2006, well, let’s say the biggest loser among commonly yield on 10-year U.S. Treasuries we’ve found a stronger pulse,” traded stocks, off nearly 44 percent going from 4.6 percent to as high Sowerby said. to $18.27. as 5.3 percent.” “Some of it is due to buyout ac- Tom Henderson: (313) 446-0337, Warren-based Asset Acceptance tivity. It was a misvalued group [email protected] DETROIT BUSINESS MAIN 07-02-07 A 5 CDB 6/29/2007 6:11 PM Page 1

July 2, 2007 CRAIN’S DETROIT BUSINESS Page 5 ArvinMeritor is ready for Act Two More Asian business, higher-margin products Everypostgave

BY BRENT SNAVELY tinued turmoil in the light vehicle and should return to 2006 levels. CRAIN’S DETROIT BUSINESS the automotive space.” To refocus the company, McClure jet- Smooth sailing ahead? McClure lesson rvinMeritor Inc. once aspired to be tisoned ArvinMeritor’s light vehicle af- a $15 billion automotive parts be- termarket businesses, as well as others. ArvinMeritor also is gaining ground in A hemoth, but in recent years has In three transactions last year, Arvin- Asia. The company’s sales in Asia for the become a smaller company by selling first six months of its current fiscal year in business Meritor raised $220 million by selling its several divisions under the guidance of Purolator filters business in North Amer- topped $459 million, up $75 million from BY BRENT SNAVELY Chairman and CEO Chip McClure. ica, its 39 percent stake in Purolator India $384 million for the same period last year. The company capped off a three-year and its Gabriel South Africa shock-ab- “We plan to triple our sales in Asia CRAIN’S DETROIT BUSINESS selling spree in May when it sold its $2.9 and with the Asian (automakers) within sorber business. Chip McClure said he learned important, but dif- billion emissions and exhaust business the next three to five years,” McClure McClure said ArvinMeritor’s light ve- ferent, lessons from each of his former employers. for $310 million. said during a speech in May to the Mar- hicle aftermarket business was dwarfed McClure, an automotive industry executive since “My view when I came on board was keting & Sales Executives of Detroit. by companies such as Ann Arbor-based the early 1980s, has logged time with Johnson Controls we were involved in too many different “That’s more than $1 billion of added Affinia Group with about $2.2 billion in Inc., Detroit Diesel Corp., Federal-Mogul Corp. and Ford businesses. And so we really needed to sales in Asia Pacific.” sales and Southfield-based Federal-Mogul Motor Co. kind of focus the company into a couple ArvinMeritor has beefed up its man- Corp. with about $2.8 billion in sales. At Johnson Controls, McClure said John Barth, key areas,” McClure said. agement team and is expanding its tech- “At $600 million here in the U.S. and the company’s chairman and CEO, taught him the “We are getting down to that now — nical centers in India and China. $800 million globally, we didn’t have the importance of developing a diverse customer base. it’s drivetrain, chassis and it’s aper- scale,” McClure said. Two key appointments were an- tures (roof and door systems).” nounced last August with the hiring of McClure, 53, spent 14 years at Johnson Controls, Along the way, ArvinMeritor paid former Ford Motor Co. product develop- serving as president of the company’s Americas re- much of its debt, beefed up its manage- Debt reduction ment executive Philip Martens and for- gion, with management responsibility for a $3 billion group of 50 manufacturing plants. ment team and worked through a re- As ArvinMeritor sold divisions, it mer Detroit Diesel executive Carsten “I had the good fortune to interface with customers structuring plan that also used the money to pay debt. Reinhardt. on the global side,” McClure said. eliminated 11 plants. “If I go back to 2004 when I came on ON THE WEB In the early 1980s, McClure said Analysts give Mc- board, we actually ArvinMeritor: 10 Johnson Controls was aggressively Clure high marks, had close to $1 billion years of pursuing business with Asian au- expansion and saying he anticipated in debt due in from ’07 tomakers, earlier than many other retraction. problems and took to ’09 and we had a Visit www.crains action before the $1.6 billion debt to- U.S. suppliers. detroit.com company got into tal,” McClure said. “If Donlon said McClure frequently trouble. Now, Arvin- you look at our bal- preaches the customer diversity Meritor is at a turning point. ance sheet today … message at ArvinMeritor. McClure’s second act, which calls for we only have $93 mil- “For a long time this company landing more business in Asia and de- lion of debt that’s was oriented mostly toward (the) veloping higher-margin products, re- due.” McClure credits Big Three,” Donlon said. “Right Donlon mains a work in progress. CFO Jim Donlon for now, the customer profile for Arvin- “On the balance-sheet side and the liq- restructuring ArvinMeritor’s debt and Meritor is Volvo, Freightliner, DCX, uidity side, they have done a very good averting a payment crisis. Hyundai, Peugeot, Tata … so (it’s) a job,” said Robert Schulz, a credit analyst On Feb. 28, 2006, for example, Arvin- nice broad breadth of customer pro- for Standard & Poor’s. “On the profitabili- Meritor offered to buy back about $450 file that reduces the risk for this ty and cash-flow generation side — million in notes that were coming due company.” that’s where the glass is a little bit more and later paid for them by issuing new At Detroit Diesel, McClure said toward half-empty.” bonds that won’t fully mature until 2026. Roger Penske instilled a much deep- For the first six months of its fiscal Donlon said ArvinMeritor scrambled er appreciation of how to truly year ending March 31, ArvinMeritor re- to get the deal done because events in achieve customer satisfaction, how ported a net loss of $87 million on total the automotive industry, including to improve cash flow and exposed sales of $3.1 billion. Schulz gives Arvin- troubles faced by Dana Corp., were af- him to Penske’s obsession with de- Meritor a credit rating of BB-, or three fecting investor confidence. tails and long working hours. levels below investment grade. In addition to selling businesses, McClure joined Detroit Diesel Corp. But ArvinMeritor’s stock hit a 52- ArvinMeritor closed plants and cut jobs. in 1997 as president and later be- week high on Friday when it closed at ArvinMeritor’s first restructuring pro- came CEO before the company was $22.20, up 99 cents from its close on gram, announced in spring 2005, eliminat- sold to DaimlerChrysler AG for about Thursday of $21.20. ed more than 2,250 positions and 11 plants. $423 million in 2000. And Goldman Sachs analyst Robert Last December, the company an- “(Penske) and I spent a lot of time Barry, in a report issued Friday, revised nounced a second restructuring plan his third quarter estimate upward for that calls for the closure of 13 additional back and forth to Europe as we were ArvinMeritor to 35 cents verses analyst plants, including nine in North America putting this deal together with consensus estimates of 23 cents per and four in Europe. The plant closures DaimlerChrysler,” McClure said. share. are expected to save $130 million to $140 “Fortunately, I can sleep on planes. million annually. ArvinMeritor’s Chip McClure has received We literally would get on a plane, fly Buying and selling high praise from analysts. over and have a couple hours of meetings, and fly back.” 2007 is biggest test Martens is senior vice president and ArvinMeritor is a tier-one supplier to McClure joined Federal-Mogul in January 2001 as president, light vehicle systems, and is both the automotive and commercial McClure said industry conditions in president, COO and board member just as that com- in charge of product development. Rein- truck industries. 2007 are difficult, as expected. pany was sinking under the weight of asbestos litiga- hardt is senior vice president and presi- With histories dating back to 1899 and One of ArvinMeritor’s biggest chal- dent of the commercial vehicle division. tion. 1919 respectively, the company is large- lenges is a drop in commercial truck Laurie Harbour-Felax, a managing di- Federal-Mogul filed for Chapter 11 bankruptcy ly the product of a merger in July 2000 of sales. Ken Kremar, commercial truck Troy-based Meritor Automotive Inc. and rector with Stout Risius Ross in Farming- Oct. 1, 2001 and was seeking approval of its reorgani- analyst for Waltham, Mass.-based Global Columbus, Ind.-based Arvin Industries Inc. ton Hills, said Martens’ experience at zation plan from creditors and a bankruptcy judge Insight, predicts sales of commercial and That deal was engineered by Chair- Ford should help ArvinMeritor develop last week. While Federal-Mogul is a tier-one automo- medium- and heavy-duty trucks will man and CEO Larry Yost. Yost also products its customers want. tive supplier, it is best known by the public for after- drop 24 percent, or from 544,600 to launched a hostile takeover bid for Tole- With new products in the pipeline, its market products such as Champion spark plugs and 412,100, this year. do-based Dana Corp. in 2003. But that ef- growing Asian business and a stronger Anco windshield wipers. About 65 percent of ArvinMeritor’s management team, McClure said Arvin- fort was unsuccessful and Yost retired “One of the things I learned there is the light vehi- the following year. revenue now comes from parts sales to Meritor is well positioned. cle aftermarket industry. That is a very, very good McClure, a former U.S. Navy lieu- commercial vehicle manufacturers. In- “I do believe that in the next few quar- business for them and they are very successful in it,” tenant, foresaw choppy waters when he dustry sales are down dramatically be- ters there are going to be some choppy arrived in August 2004. cause of emissions regulations that waters. But I am very bullish on 2008 McClure said. “We knew that a couple things were went into effect this year and caused a and 2009. I feel 2008 and 2009 are going to “And it kind of formed some of my views as to why going to converge in 2007,” McClure surge in sales last year. be very good years,” McClure said. we (ArvinMeritor) were never going to be able to said. “The heavy truck (sales) down- But sales will rebound next year, Kre- Brent Snavely: (313) 446-0405; compete to that level because we are not big enough.” turn, the UAW negotiations and the con- mar said. And by 2009, he said they [email protected] Brent Snavely: (313) 446-0405; [email protected] DETROIT BUSINESS MAIN 07-02-07 A 6 CDB 6/29/2007 9:16 AM Page 1

Page 6 CRAIN’S DETROIT BUSINESS July 2, 2007 BRIEFLY Report: Cell use up, competition the city. that reach benchmarks in biofuel $100,000 to the Detroit Area Pre- sales. LOOKING FOR SUCCESSFUL WOMEN down for local-phone service College Engineering Program to ex- Consolidating, within a single Who are the most powerful and successful women in metro Detroit? The annual Michigan Public Service pand its work to encourage more agency, renewable-fuels-related Crain’s Detroit Business answered that question in 1997 and again in Commission report tracking telecom- minority young people to pursue ca- promotion and economic develop- 2002 when it published a list of the most influential women in Southeast munications competition in Michi- reers in science, technology, engi- ment efforts currently housed in Michigan. They included entrepreneurs, civic leaders and top executives at gan found competitors to incum- neering and mathematics-related several state departments. the largest companies in our area. bent phone companies such as AT&T fields. Establishing regional centers You can help us identify who should be recognized this year. Please Inc. holding an 18.3 percent share of $260,000 over two years to the to help commercialize feedstocks consider top executives within your own business. How about the nonprofit boards on which you serve? the wirelines provided to cus- St. John Community Health Invest- for renewable-fuels production. tomers, down from 21.2 percent in ment Corp. to support start-up and Identifying, publishing and Overall, the women selected will be: 2005. operation of a health clinic at Os- marketing an inventory of prime Influential in their company or industry. During the same period, AT&T born High School in Detroit. sites where new renewable-fuel Have a track record of accomplishment. increased its market share to 65.5 — Sherri Begin plants could locate next to existing Have a solid reputation within their company or industry for integrity and percent from 62.6 percent, while operations such as pulp mills and ethical behavior. Verizon Communications Inc.’s share Commission recommends manufacturing, power, and food- Forms to nominate candidates and to apply directly are at remained steady, at 12.3 percent. processing plants. www.crainsdetroit.com. Nomination forms should be submitted by July 13. The PSC report cites Federal Com- strategy for alternative fuels In a news release, Mitch Irwin, Past honorees are eligible for recognition and should include information the chairman of the Renewable Fu- about their accomplishments since they were last chosen. munications Commission data that A state commission has recom- els Commission, said the state Questions? E-mail Executive Editor Cindy Goodaker at show wireless subscriptions in mended a list of strategies the gov- “has all the necessary elements to [email protected] or call (313) 446-0460. Michigan continuing to increase, ernor and Legislature could take build a thriving alternative-ener- growing by 633,403 subscriptions to promote the use, development gy economy.” Gov. Jennifer from June 2005 to June 2006. and production of alternative fuels Granholm is committed to build- some 200 EDS contract employees Autoweb has approximately 40 Also in 2006, the total number of in Michigan. ing the sector, he said. into SDE employees, said SDE employees in Rochester Hills and customer wirelines decreased, con- The report by the Michigan Re- “This comprehensive report marketing director Zakiyah about 10 in Leeds, England. tinuing a trend that began in 2002 newable Fuels Commission, released and “reflecting the providers’ provides decision-makers with Brooks. — Brent Snavely June 21, is designed to help the claimed loss to mobile wireless and sound recommendations for tak- Terms of the purchase were state accelerate the development other types of telephony including ing Michigan to the next level of undisclosed. The employees are of its biofuels industry. Recom- SEMCOG elects officers Voice over Internet Protocol as well development,” said Irwin, who housed in a facility SDE operates mendations include financial in- as a movement away from using Michigan De- in Troy, and include some execu- The Southeast Michigan Council of centives, exploration of new fund- also is director of the dial-up Internet to high-speed con- partment of Agriculture tives, purchasers of supplies and Governments elected top officers at ing sources and government . nections,” the report found. materials and other administra- its annual meeting June 21, select- streamlining. — Amy Lane — Amy Lane tive staff. ing Mayor William Roberts of The recommendations include: — Chad Halcom Walled Lake as chairperson to re- Establishing an incentive SDE buys EDS practice place Ira Township Supervisor Skillman Foundation awards package of at least $200 million for developers of early stage technolo- Detroit-based staffing and ser- CMS withdraws from Ill. project John Jones. $3.5 million in grants gy projects and processing centers. vices firm SDE Business Partnering Those chosen included one new CMS Energy Corp. has withdrawn Exploring or developing new L.L.C. recently purchased the main- officer, Green Oak Township The Detroit-based Skillman Foun- from a planned $200 million invest- funding mechanisms, including tenance repair and operations con- Clerk Michael Sedlak, a vice chair- dation approved grants the week of ment to co-develop and co-own a federal grants and nonearmarked sulting practice that competitor person. June 19 totaling $3.5 million. new southern Illinois power plant. revenue generated from state- EDS Service Corp. had been operat- Other SEMCOG 2007-2008 offi- Among them were: The company decided in May ing by contract with Daimler- cers are: $340,000 over two years to the owned oil, gas and forest reserves. that subsidiary CMS Enterprises Chrysler AG. Mary Blackmon, Wayne County Archdiocese of Detroit to develop Establishing a “green retail- would not move forward with plans The acquisition, which took ef- Regional Education Service Agency, site-based teams to improve ers” tax-incentive program to re- to be a partner in the 1,600 first vice chairperson and Trustee, parochial elementary schools in ward retail and wholesale outlets fect March 2, essentially converted megawatt coal-fired power plant, es- timated to cost more than $2.5 bil- to become chairperson in 2008- lion. 2009. CMS Enterprises and St. Louis- Robert Cannon, Clinton based Peabody Energy Corp. an- Township supervisor; Philip Ca- nounced in October 2006 that they vanagh, Wayne County commis- would co-develop the project sioner; and Robert Hison, mayor known as the Prairie State Energy of St. Clair Shores, all vice chair- Campus. But CMS determined that men. the project did not meet its invest- SEMCOG is a regional planning ment criteria, including the level agency of governmental units for of long-term power-purchase the seven-county region of South- agreements for CMS’ share of the east Michigan, whose population plant’s output, said Dan Bishop, CMS public-information director. is 4.9 million. “It was just not lining up the se- — Bob Ankeny cure customers that we felt would be needed to justify our continued ESD announces award winners involvement in the project,” Bish- op said. The Southfield-based Engineering — Amy Lane Society of Detroit honored the win- ners of its Construction & Design Autoweb management team Awards at the Detroit Science Cen- ter on June 21. buys software company The recipients were: ■ Rochester Hills-based Autoweb’s General Motors Corp.’s global existing management team along headquarters at the Renaissance with New York City-based private- Center in Detroit. equity firm Kinderhook Industries ■ Lawrence Technological Universi- has purchased the software devel- ty’s Student Services Center in opment company from NTT America Southfield. Inc. Terms were not disclosed ■ GM’s Lansing Assembly Plant Nino DiCosmo will remain pres- in Delta Township. ident and CEO of Autoweb and the ■ Whitmore Lake High School. executive management team will ■ Warren’s City Hall, library remain intact, the company said in and parking structure. a statement. Autoweb declined to Two other projects were recog- provide the terms of the deal. Autoweb designs software that nized with honorable mentions: ■ helps companies manage their William Beaumont Hospital’s product-design data. The company Surgical Learning Center in Royal has a network that connects manu- Oak. facturers and their suppliers with ■ Global Engine Manufacturing Al- more than 20,000 users and 2,600 liance plant in Dundee. client companies in 40 countries. — Aaron Harris DETROIT BUSINESS MAIN 07-02-07 A 7 CDB 6/29/2007 2:23 PM Page 1

July 2, 2007 CRAIN’S DETROIT BUSINESS Page 7 PEOPLE Calif. company to offer ARCHITECTURE John Alfs to mem- Stephen Bernard IN THE SPOTLIGHT ber, litigation and to vice president, business practice landscape design- Steve Jenkins groups, Clark Hill Internet access through er and project has been plc, Birmingham, manager, Debo- named general from equity rah Silver & Co. manager of the shareholder and and Detroit Gar- Michigan State member of the den Works, Syl- Fairgrounds. board of directors, Consumers’ power lines van Lake, from di- Jenkins, 53, Cox, Hodgman rector of grounds replaces John and Ciarmarco and recreation, BY AMY LANE and 26 trials around the country Hertel and was Alfs P.C., Troy. The Grand Hotel, named to the CAPITOL CORRESPONDENT involving BPL technology. Bernard Mackinac Island. position by MARKETING Brett Kilbourne, director of LANSING — A new player is regulatory affairs for the council, Jenkins Gov. Jennifer Bryan Krulikowski to vice president, CONSTRUCTION Granholm. entering Michigan’s telecommu- said the technology is in urban, Morpace International Inc., Farming- nications market to offer high- Rick Savage to chief estimator for Most recently Jenkins had been ton Hills, from senior director, syndi- suburban and rural areas, using base building projects, Synergy Group, speed Internet service over pow- administrative officer at the Thumb cated research practice, Harris Inter- both overhead and underground Bloomfield Hills, from estimator, J.L. Correctional Facility in Lapeer. He active Inc., Ann Arbor. Also, David er lines. power lines. The frequency range Judge Construction Co., Detroit. had been assistant general Myhrer to vice president, from vice Los Angeles-based Utility.net for a BPL signal is higher than Jason Fisher to manager for the Michigan State president, Synovate Motoresearch, L.L.C. is working with Consumers construction en- the frequency range of electric Fairgrounds 1998-2000. In 2001, Royal Oak. Energy Co. to roll out what Con- gineer, URS current, so BPL does not interfere he became deputy racing Kelly DiCicco to business development sumers believes is Michigan’s with electricity transmission. Corp., Farming- commissioner for the Michigan ton Hills and De- director, Pulse220, Southfield, from first deployment of broadband Office of Racing Commissioner in However, static on a line can in- troit, from con- member, sales and service team, over power lines, or BPL. Livonia. terfere with the BPL signal. struction House of Blues, Chicago. Utility.net plans to target resi- The city of Manassas, Va., an- engineer, Or- Jenkins’ responsibilities include dential and business customers chard, Hiltz & Mc- increasing attendance during the SERVICES nounced the first commercial Climent Inc., event, bringing additional events to in rural areas that have little or deployment of BPL in 2005; ven- Livonia. the grounds and streamlining day- Sandra Laird to director of quality sys- no choice of broadband provider, tures include other municipali- to-day operations. tems, United Methodist Retirement starting with some 10,000 homes ties, electric cooperatives and Communities, Chelsea, from quality Fisher ENTERTAINMENT in Grand Ledge, near Lansing, utilities. Some trials of the have Guaranty Inc., Farmington Hills. improvement coordinator, M-Care, Barbara Penchoff to quality assur- and expanding over the next sev- ended without moving forward. James Dustman to vice president and Ann Arbor. ance manager, Palace Sports and En- eral years to reach 1 million Con- Consumers Energy is interest- tertainment, Auburn Hills, from district manager for Michigan in- Jennifer Gratz to assistant director of sumers Energy customers. store branches, South District, Chase, dining, Fox Run, Novi, from staff de- ed in the technology, particularly client services manager, TicketMas- In Southeast Michigan, Con- in its applications on the utility’s ter, Bingham Farms. Pontiac, from manager, downtown velopment manager. Also, Dan Auber- Farmington branch, Farmington. le to executive chef, from chef, Andi- sumers Energy provides electric- electrical grid. For example, BPL FINANCE Patrick McDaniel to vice president, amo’s of Clarkston, Clarkston; Scott ity in parts of Oakland, Washte- could enable the utility to detect executive risk practice, Hylant Group, Newell to restaurant manager, from naw and Livingston counties. outages sooner and communicate Patricia Dinning to manager of real es- Ann Arbor, from team leader, Finpro independent manager of conference At the Detroit Edison Co., Scott tate assets, H.W. Kaufman Financial in new ways with its equipment division, Marsh USA, Baltimore. and travel services for southeastern Group/Burns & Wilcox, Farmington Simons, senior media-relations and customer meters. Also, Douglas Miller to vice president, Michigan law firms; Nicholas Koz- Hills, from portfolio manager, Grubb representative, said Edison Consumers Energy acts as a executive risk practice, from Finpro lowski to marketing coordinator, from & Ellis Management Services, South- looked at BPL a couple of years landlord, charging Utility.net practice leader for Michigan, Marsh, operations associate; and Vrinda field. Detroit. ago but it “didn’t meet with our Suneja to medical director, from fees to use its poles and power Garry Boyer to se- Larry Smith to executive vice presi- physician. business strategy.” lines. Gerald Wyse, value analy- nior vice presi- dent, director of sales, Falcon Group The service initially will pro- sis manager at Jackson-based dent, director of Inc., Farmington Hills, from executive vide high-speed Internet access Consumers, said he could not commercial real vice president, Red Phone Advertis- SUPPLIERS for data transmission but could predict what revenue the utility estate, Michigan, ing, Bloomfield Hills. Alan DeVore to Charter One eventually also encompass voice would gain from the venture. Christine Ryan to president and Bank, Southfield, branch manager, COO, The Crown and video — a three-piece prod- Flaxman said Utility.net might from senior vice Community Fi- Group, Warren, uct similar to multimedia offer- spend as much as $95 million to president, divi- nancial Credit from president, ings from companies like AT&T sion manager, provide the service if the pro- Union, Canton commercial real Mark IV Automo- Inc. and Comcast Corp., over their gram expands to 1 million Con- Township, from estate, LaSalle tive, Rochester own networks. sumers customers, but would not Boyer trainer and con- Bank, Troy. Also, Hills. But Utility.net sees itself ap- sultant, D.A. say how much the company David Lochner to Don George to Roberts & Associ- pealing to customers who want to would pay Consumers or what senior vice presi- ates, Bloomfield. vice president of deal with a smaller company. revenue it expects to generate. dent, director of marketing, ND In- And David Flaxman, vice presi- middle market With BPL, Internet signals car- DeVore dustries, Clawson, banking, Michi- HEALTH CARE dent of business development for ried by fiber-optic lines or wire- Ryan from technical gan, from senior Howard Neff to specialist, Ford Motor Co., Dearborn. Utility.net, said about half the less technology typically are in- vice president, di- service chief to ophthalmology, Henry Consumers service territory has Peter Daley to zone manager, Eastern jected into the power grid at or vision manager, Ford West Bloomfield Hospital, West either one, or in many areas, no near a substation, and travel commercial bank- zone, NGK Spark Plugs (USA) Inc. Au- Bloomfield Township, continuing as broadband provider. along power lines to a customer’s ing, LaSalle Bank, senior staff ophthalmologist, Henry tomotive Group, Wixom, from assis- Troy. Ford Hospital, Detroit; division health tant zone manager, Eastern region. “For us it looks to be very fer- interior electrical wiring. The of ophthalmology, Henry Ford Med- Also, Chris Hillestad to zone manager, tile ground,” he said. customer uses a modem that can Lochner Jitendra Patel, president and ical Center-Farmington Road; and Midwest zone, from recreational mar- Comcast serves the initial BPL be plugged into any electrical CEO, Michigan Inns Inc., Lathrup Vil- medical director of the Henry Ford ket manager. area of Grand Ledge and has a outlet in their home and connect lage to chairman of the board of direc- LASIK Centers. territory that stretches through their computers. tors, Lotus Bank and Lotus Bancorp, TELECOMMUNICATIONS Southeast Michigan into the Utility.net plans to offer upload Novi. Also, Ravi Gullapalli, real estate INFO/TECHNOLOGY Stephen Thomas to vice president, Thumb and across mid-Michigan developer, to vice chairman; and D. speeds as fast as its download Julie Knakal to inventory manager technical operations, Michigan re- to parts of west Michigan. But speeds and says both are expected Curt Shaneour, chairman, the Shane and research engineer, Surplus gion, Comcast, Southfield, from vice the company is used to competi- to be at or near the purchased ser- Group Inc., Hillsdale, to secretary. Track.com, Ann Arbor, from project Also, the following members were ap- president and general manager of the tion, said Jerome Espy, director vice speeds 95 percent of the time. engineer, Seating Mechanisms Busi- Detroit cable system. pointed to the Lotus Bancorp Inc. ness Unit, Johnson Controls Inc., Ply- of communications for Comcast’s The company is partnering with board of directors: Vinaya Gavini, doc- mouth. Southfield-based Michigan oper- Internet service providers to of- tor, Providence Hospital, Novi, to chairman; Satish Jasti, president and Chris Lutz to vice ations. fer three levels of high-speed In- CEO, Lotus Bank and Lotus Bancorp president of sales, PEOPLE GUIDELINES “We already face competition ternet services ranging from $29 KMT Robotic So- Inc., to vice chairman; and Mayur Announcements are limited to across all of our product lines, to $55 a month, depending on Joshi, Realtor, Max Broock Realty, lutions Inc., whether it be in Internet, phone speed, Flaxman said. Auburn Hills, management positions. Nonprofit Bloomfield Hills, to secretary. Also, or video,” Espy said. “We feel The ISPs will handle customer Richard Bauer to executive vice presi- from automotive and industry group board that we offer a great product at a dent and CFO, Lotus Bank, Novi, from sales manager, appointments can be found at service, billing, marketing, and senior vice president, Fidelity Bank, Applied Robotics www.crainsdetroit.com. Send great price and a great value for decisions like whether to also of- Birmingham; Richard Gurne to execu- Inc., Glenville, submissions for People to Joanne people.” fer Internet-based phone service tive vice president and chief lending N.Y. Scharich, Crain’s Detroit Business, He said Comcast serves more and video. The network will be officer, from president, Tranex Finan- Tim Flynn to se- 1155 Gratiot Ave., Detroit, MI than 1.4 million customers in capable of supporting all three, cial Inc., Southfield; Jeremy Runyon to 48207-2997, or send e-mail to Lutz nior account Michigan. For rural areas that Flaxman said. operations officer, from electronic manager, Integri- [email protected]. Releases banking analyst, Fidelity Bank, Birm- have no service at all, BPL The company expects the ini- ty Networks, Troy, from national ac- must contain the person’s name, sounds like it might be “a good tial Grand Ledge-area service to ingham; Jennifer Burley to banking of- count manager, BullsEye Telecom, new title, company, city in which ficer, from branch manager, Flagstar Oak Park. option,” Espy said. be operating by year-end. Bank, Waterford; Michele DeJaegher the person will work, former title, former company (if not promoted According to the United Power Consumers Energy will grant to assistant vice president-business Line Council, a Washington-based Utility.net additional service ar- lending, from assistant vice president LAW from within) and former city in association of utilities and tech- eas in blocks of 100,000 cus- of commercial loans, LaSalle Bank George Ash, partner, Foley & Lardner which the person worked. Photos Midwest N.A., Troy; and Koleen L.L.P., Detroit, named chair of the are welcome, but we cannot nology companies working to tomers. Mouw to senior underwriting officer, firm’s regulated industries depart- guarantee they will be used. drive BPL development, there Amy Lane: (517) 371-5355, alane from mortgage underwriter, Radian ment. are nine commercial ventures @crain.com DETROIT BUSINESS MAIN 07-02-07 A 8 CDB 6/29/2007 4:18 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS July 2, 2007 OPINION Straighten up and fly right, Northwest

etro Detroit has a paradox. Its airport is world-class, M but its dominant airline, Northwest Airlines is post- ing a service record that has to be one of the country’s worst. One of Detroit’s competitive advantages is Detroit Metro- politan Airport. With all airlines combined, Detroit offers non- stop service to 160 destinations. But it’s no advantage at all if business can’t depend on reliable, on-time service. The hundreds of recent flight cancellations and the callous handling of customer complaints by airline employees is an on-the-ground airline disaster. Northwest’s executives need to create an emergency plan to improve labor relations, on-time service and customer satis- faction. If it cannot satisfy customers, the Wayne County Air- port Authority Board which operates Detroit Metropolitan Airport must strategically use the construction of new facili- ties to replace the Smith Terminal as an opportunity to in- crease airline service competitive with Northwest’s. Northwest emerged from bankruptcy on June 1 with a new stock offering and plans to reinvest in new aircraft, including LLETTERSETTERS 18 new aircraft for nonstop service to China. But pricey rewards for Northwest execs, including nearly $27 million for CEO Doug Steenland, rankled employees who Levin support helped riverfront took pay cuts as part of the airline’s bankruptcy restructuring. Before the month was over, poor labor relations began to Editor: tum to our capital fundraising Crain’s Detroit Business take a toll as airline pilots began following the contract and We are convinced that Mary campaign to ensure that we bring welcomes letters to the editor. Kramer would have reached a our vision of public access to the stopped flying after reaching the monthly contractual maxi- All letters will be considered for very different conclusion on Sen. riverfront to reality. mum of 90 in-flight hours. The Federal Aviation Administra- publication, provided they are Carl Levin’s record of bringing Faye Alexander Nelson tion permits 100 hours a month. signed and do not defame home federal dollars if she had President & CEO More than 10 percent of Northwest’s daily flights were can- individuals or organizations. Detroit Riverfront Conservancy spoken with us at the Detroit Letters may be edited for Detroit celed late last month. But in handling that crisis, Northwest Riverfront Conservancy. (“We’re length and clarity. starving for leadership,” June 4.) initially blamed the weather. It took Northwest days to own up Write: Editor, Crain’s Detroit St John needs vow No one has been more support- to the real reasons for the cancellation. Business, 1155 Gratiot Ave., ive of the effort to revitalize De- Angry business and leisure travelers are piling on in Web Detroit, MI 48207-2997. of poverty troit’s riverfront than Sen. Levin. chat rooms, recounting one travel disaster after another. Busi- E-mail: [email protected] Editor: He has brought home federal fund- The article “Health of the busi- ness depends on reliable vendors. Northwest has cost business ing in support of this development ness, or the business of health?” travelers a loss of sales, deals and productive work time. effort, including more than $40 pavilions. More than 75 percent of reported by Melanie Evans on Northwest’s board should get involved, too. As is the case million ($37 million for the west the east riverfront is now open for June 4 was excellent, very infor- in many corporate-labor showdowns, this situation was riverfront; $3 million for the east the public to enjoy and the re- mative, and revealing. riverfront for the Conservancy sponse has been incredibly enthu- exacerbated when the board rewarded management with rich St. John’s loss as reported, for project alone) in fiscal year ’06. siastic. ’06 of $9 million, and its projected packages for steering the company through bankruptcy at the Those dollars are a great invest- The Detroit riverfront revital- loss for ’07 of $22 million is the same time employees were asked to take significant cuts. ment in Michigan because a rede- ization project will certainly bene- charity that they should be giving Bottom line: This is a problem Northwest needs to solve im- veloped Detroit riverfront will fit the entire state. Sen. Levin’s to the poor. mediately. spur nearby development, create support — along with support St. John is included in one of the jobs, and enhance our quality of from his colleagues in Congress, The flight-hours problem accelerates late into a month. So largest web of Catholic hospitals life. The Conservancy was pleased the city of Detroit, the state of throughout the country. It would here’s a thought: The FAA also caps in-flight hours at 1,000 a to open new segments of River- Michigan and our private and pub- take three accounting firms to year. So what happens in peak travel time this year in Novem- Walk earlier this month, including lic partners in the community — ber or December as pilots start to hit that mark? two of the four planned plazas and have provided significant momen- See Letters, Page 9

KEITH CRAIN: We still have lots of things to celebrate If ever Chicken Little had rea- to be president of the out the state’s magnifi- Fourth of July is supposed to be with summer fun to be particularly son to worry about the sky falling, United States. cent golf courses. And celebrated. lucky. it might be now. On the other hand, tourists are coming by We can decide that the cup is The landscapers seem to be out Our state government seems it’s July in Michigan car from shorter dis- half-empty or half-full. I am of a in larger numbers than ever be- bereft of leadership from the top and it couldn’t be a bet- tances to fill up our ho- mind to consider it to be half-full. fore. And anyone who enjoys cars down. We have become obsessed ter time of the year. tels and motels and take In spite of all the pitfalls and chal- can look forward to a huge number with global warming. Our largest Boating is in full advantage of everything lenges that face our nation and our of events starting with the Wood- employers, the Detroit 3, are strug- swing and, in spite of gas that Michigan has to of- state, there is still plenty to cele- ward Dream Cruise. gling with survival. Thousands of prices, people still want fer. brate this week. And there are still There is plenty to do and plenty Michiganders have been laid off to buy boats. And there The Henry Ford (I plenty of businesses that are doing to enjoy during what many might from their jobs, and, in Washing- are still plenty of folks still want to call it quite well, I would have you know, think are very tough times. And ton, our senators and representa- who want to buy motor- Greenfield Village) and in spite of the downturn. they are right. tives appear intent on self-destruc- cycles and ride them the Detroit Zoo are Most of us are going to survive But the nice thing about Michi- tion. And the war goes on. with their helmets on, in spite of poised for hordes of visitors. and perhaps even prosper. Certain- gan and Southeast Michigan is And somehow, through all this our goofy legislators who want to And folks are going to sneak a ly we can all take advantage of our that there is plenty to do even with chaos, we have 15 or so poor souls eliminate the helmet requirement. couple of extra days off this week wonderful Michigan summers and limited resources. It doesn’t take a who think they have the right stuff Now is the time for golfers to try since no one is sure when the consider the folks who do business fortune to enjoy our summers. July 2, 2007 CRAIN’S DETROIT BUSINESS Page 17

Confidential Reply Boxes Available Call Us For Personalized Service: See Crainsdetroit.com/Classifieds (313) 446-6068 CRAIN’S CLASSIFIED for more classified advertisements See our Classified ads on www.crainsdetroit.com FAX: (313) 446-1757 MAIL: Classified Advertising, Crain’s Detroit Business, CLOSING TIMES: Monday 3 p.m., PAYMENT: All classified ads must be prepaid. E-MAIL: [email protected] 1155 Gratiot Ave., Detroit, MI 48207-2997. one week prior to publication date. Checks, money order or Crain’s credit approval INTERNET: www.crainsdetroit.com/classifieds Include name, company, address and phone number. Please call us for holiday closing times. accepted. Credit cards accepted.

ANNOUNCEMENTS & BUSINESSES FOR SALE SERVICES Going Business FINANCIAL SERVICES Take over this unique after-school/evng CRAIN’SEXECUTIVE RECRUITER Need Quickbooks to do more for you? enrichment prog for children & adults. Quickbooks is our specialty. 350k rev, 150k net. Trained staff in place. Optimum Systems 248.379.1500 Numerous growth opportunities. FINANCE GENERAL MANAGEMENT Systems & Financial Analysis Email: [email protected] DRIVER/TECHNICIAN for Detroit Medical Equipment Accounting Clerk Company. Experience preferred. F/T. Development Director EARN 12% INTEREST Fax resume to 267-525-7764 Bloomfield Hills law firm seeking organ- or email [email protected] Matrix Human Services Michigan lender selling interest in EQUIPMENT & ized, reliable and detail oriented candidate mortgage loans. 1st-position se- to perform client billings, invoice and pay- A non-profit organization providing programs and MERCHANDISE services to over 5,000 children, adults, seniors, cured. Interest paid monthly on cash ment tracking and related summaries and investments. $50K-$1M available. and families in the metropolitan Detroit communi- duties, as well as serve as support for Ac- ty seeks an innovative Development Director. Royal American Mortgage, Inc. TELECOMMUNICATIONS counting Manager working with accounts CRAIN’S CLASSIFIEDS (800)737-3044. Ask for Don War ren. Qualifications: a visionary person with a compel- LUCENT . . . AVAYA. . . PARTNER. . . payable, receivable and payroll. Must ling plan for future fund raising /development; a MAGIX. . . VOIP. . .LEGEND . . . have minimum of Associates Degree in ac- WORK! consistently positive, can-do attitude; strong on MERLIN. . .SPIRIT Systems/Parts New/refurbished. preparations and grant writing; verbal/written BUSINESS & Omnicall Equipment Corp. (248) 848-9282 counting and/or business related course of To Place Your Ad Call communication skills; analytical ability and re- study and at least two years of full-time sults orientation; proficiency in fund raising tech- WE HAVE USED PHONES INVESTMENTS experience in an accounting position. nology; up to 5 years successful fund raising ex- Nortel, Lucent, phone systems. Almost any new or (313) 446-6068 perience; degree(s) or equivalent appropriate for used phone available. Expert installation available. Please send resume to: the position; reports to agency CEO, salary nego- BUSINESSES FOR SALE Call (248)548-6404 or Dawda, Mann, Mulcahy & Sadler PLC, tiable. Well Established Oakland County Coin Laundry 39533 Woodward Ave., Suite 200, Bloom- Fax (313) 446-1757 Resume to: (since 1970) Nice Building and Property. INDUSTRIAL EQUIPMENT field Hills, MI 48304 Attention LER. Matrix Human Services (248) 310 - 0662. 120 Parsons Street Need More Space? Detroit, MI 48201 MANAGEMENT Fax: 313-831-9139 FRANCHISE OPPORTUNITIES E-mail: [email protected] EOE

Marketing Outreach Coordinator Director, Academic and Program Services Trinity Continuing Care Services is seeking a Starting at $1,895.00 Marketing Outreach Coordinator for: ARESCO, Inc. The Eli Broad Graduate School of Management Southeastern Michigan Duties: Establish short and long-term strategies, goals and objectives to manage key This position requires demonstrated Pontiac, MI aresco.org result areas and ensure success of academic and program services; develop sustainable success in: Toll Free 1-877-227-3726 processes to improve efficiencies and drive continuous improvement in areas of • High level of customer service. responsibility; manage academic advising, course scheduling, enrollment and degree • Outstanding creative and technical writing certification processes for MBA students; manage program support services and events and editing (including grammar, spelling, etc.) OFFICE FURNITURE such as orientation, graduation, professional development workshops, day-to-day problem resolution; develop and maintain effective relationships with the department • Creating and managing effective communi- chairs, MBA faculty and deans to facilitate optimal scheduling, teaching assignments, cation strategies MUST SELL, OFFICE CLOSED • "Out of the box" thinking and application Desks $99, Chairs $39, Files $49, Partitions $50, and to assist in curriculum development; manage internal and external surveys, • Fast execution of plans Lateral Files $99, Cubicles, Office Phone Systems program budgets and supervise professional staff. Call (248) 548-6404 or (248) 474-3375. • Highly organized, task oriented and dead- Qualifications: MBA or other relevant master’s degree strongly preferred. Five years of line driven. experience in graduate education or business are preferred. Some evening and General responsibilities include: Advertise your goods and services in weekend work is required. The position is a full-time, annual year position and is available immediately. Salary is commensurate with degree and experience. • Media relations strategies Crain’s Detroit Business • Community outreach programming Applications: Due Friday July 6, 2007. Send cover letter, vita and 3 letters of • Marketing and strategic planning recommendation to: Cheri Speier, MBA Program/Dean’s Office, N520 Business • Return on investment analyses and protocols Complex, Michigan State University, East Lansing, MI 48824-1122; Email: for marketing [email protected], Fax: (517) 353-6395. The ideal candidate will also have: MSU is committed to achieving excellence through cultural diversity. The University actively encourages applications and/or nominations of women, persons of color, 1. 3-5 years experience working in dynamic hospitality-focused environments with pro- veterans and persons with disabilities. CRAIN’S RESIDENTIAL PROPERTIES gressive responsibility. MSU IS AN AFFIRMATIVE ACTION, EQUAL OPPORTUNITY EMPLOYER. 2. B.A. in marketing, communications, busi- ness administration, or relevant discipline. 3. Interpersonal skills to drive collaboration, CONDOS LUXURY PROPERTY commitment and productivity when working with cross-functional teams, customers and 1 BD/1BA or 1BD/1 1/2 BA-Spectacular 22nd Fl. Ultra - Cool Downtown Birmingham Townhouse! water views controlled assess w/many amenities. Modern, Award-winning. Finish -to- Suit. end users. Minutes from major freeways. A MUST SEE!! See www.gaerts.com/ann/647.jpg 4. Strong team skills, especially working in Contact [email protected] to inquire. or (248) 622-6263. cross-functional teams. Strong relationship- Senior Director/Client Solutions building and alignment skills. Drive strategy for the newly formed Client Solutions (CS) group, a customer-centric, 5. Must possess the ability to plan, organize, LUXURY PROPERTY Bay Harbor Resort solutions-based approach to advertising sales. Identify and develop integrated media/ develop, implement and interpret programs, marketing programs that deliver results for advertising clients. 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Stone cabin, power, H20, etc. Rolling Ideal candidate has agency, media or corporate background, preferably with experience sq. ft. - total privacy - elevator - 3 bedroom hardwoods, swamp. Close to Turtle Lake Club. Ex- in print and digital platforms, event marketing, sales promotion and client solutions. CRAIN’S - 5 fireplaces - stone floors - 20 feet + ceil- cellent hunting. Additional 640 acres borders this with 2,000 sq ft lodge. 155 / acres $349,000 or 640 acres Graduate degree preferred. Required: Minimum 8 years experience in marketing/sales ings 3 car garage - 5 furnaces -4 air condi- $1,499,999. 18 Bucks taken ’06 hunting season. 5 years experience in management; strong technical skills, including PowerPoint, EXECUTIVE tioners - one of a kind Must sell - sacrifice (989) 736 - 6978 owner. CRM. $4,800,0oo.00 - cannot be duplicated. Join the most powerful, far-reaching multi-media organization in Michigan! RECRUITER Bloomfield Hills WATERFRONT PROPERTY •Michigan’s two largest newspapers, the Detroit Free Press and The Detroit News. 2060 West Valley •Michigan’s largest web audience, freep.com and detnews.com. WORKS! 4,000 sq. ft newly renovated -4 car garage - Lake lot in Lewiston, Mi. •Magazines, custom publications, Web sites, TMCs, direct mail, insert services. In ground pool - 2 acres Behind Bloomfield 100’ x 638’, 1.5 acres on 1400 acre West Twin Lake. Detroit Media Partnership is the place to be if you want to make an impact. Sunset views, close to Garland golf course and thou- Hills Country Club Will take best offer over To Place Your Ad Call sands of acres of public land. $360,000.00 Please send resume with cover letter in confidence to [email protected] $1,600,000 Sacrifice - must sell. Call 586-979-7737 or 989-786-2355 Petoskey - Harbor Springs Family cottage (313) 446-6068 or (248) 568 -3077 On Little Traverse Bay. Creme de la creme. Aug.-Sept $3000 /wk CRAIN’S CLASSIFIEDS WORK! To Place Your Ad Call (313) 446-6068 or Fax (313) 446-1757 Fax (313) 446-1757 (419) 957-2377 Page 18 CRAIN’S DETROIT BUSINESS July 2, 2007

See Call Us For Crainsdetroit.com/realestate Personalized Service: for more real estate (313) 446-6068 advertisements CRAIN’S REAL ESTATE

COMMERCIAL PROPERTIES COMMERCIAL PROPERTIES COMMERCIAL PROPERTIES OFFICE SPACE Commercial Development Properties Colliers International FOR SALE • Rochester downtown 3.5 acres • Oxford downtown 21,000 Sq Ft building site 1000 Farmer & 815 Bates Street • Lake Orion 2 acres M-24 / Lakefront 1.866.540.0310 815 Bates St. • Almont 16 acres. Call (248) 821-0752 for details.

INDUSTRIAL PROPERTY LEASING SINGLE & MULTIPLE OFFICES RETAIL FOR LEASE RETAIL FOR SALE OR LEASE 1000 Farmer St. 500 SF OR LESS Taylor Commons, Taylor: Ford Road & I-275, Canton - Land Available: FOR LEASE 15,750 SF available. Located in a Farmer This 66.31 acres is a prime infill developent First Class Office Space Jack and Dunhams anchored center. Area in a rapidly growing retail corridor including DEARBORN, MICHIGAN has great demographics. IKEA. 60,000 sq. ft. Building, 4,000 sq. ft. Office • All Private Window Offices Contact: Tjader Gerdom Contact: Randy Thomas Campus Martius District, Detroit, MI Sprinklered / 6 Truck Docks • Telephone Answering Included Pardee & Eureka, Taylor: Michigan Avenue, Canton - Land Available: 1000 Farmer Street 815 Bates Street • Conference / Meeting Facilities Restaurant site for lease. 6,100 SF outlot to 2.41 acres located adjacent to a new •18,300 SqFt Available •18,993 SqFt Available 313-506-0534 • Full Business Services Meijer. Located across from Southland Mall Target anchored center. Excellent retail •Three Floors •Six Floors within a very busy retail area. opportunity. Great visibility. (Plus Basement) (Plus Basement) • T1 Internet Access Contact: Layth Barash Contact: Brad Boatin •Corner Parcel •Classic Brick Facade • Private Parking 33816 S. Gratiot, Clinton Twp: Five Mile & Merriman, Livonia: Perfect for Office/Retail/Loft Redevelopment • $175 Part Time Plans Also Available 19,000 SF available in premier development Up to 15,000 SF available. Anchored by For More Info Please Contact: with Target, Sports Authority and Office a newly expanded Kroger with a variety Steve Eisenshtadt, CCIM (800) 446-4444 Max. Great visibility in busy retail corridor. of other specialty retail. 248.324.2000 South Genesee’s Premier Warehouse Contact: Pete Brown Contact: Tjader Gerdom www.americenters.com 34975 W Twelve Mile Rd Commerce & Carroll Lake Rd, Commerce: M-50 & Wilcox, Dundee: Farmington Hills, MI 48331 Available Space: Troy • Southfield • Livonia 152 acres, 80 of which will be retail, 1.75 acres of vacant land. Is master www.friedmanrealestate.com Bloomfield Hills • Novi • Detroit planned neighborhood commercial. Great positioned in major retail area of  45,000 SF with Rail Dundee near new Meijer development redevelopment site for bank, retail or  99,200 SF The office. and Cabela’s. Great visibility. best for Contact: Randy Thomas  Contact: Larry Balone FOR SALE 64,000 SF less! and make no payments for 8 months DETROIT ANN ARBOR WINGATE VILLAGES & CLUBS  111,800 SF ACT TODAY 2 Corporate Drive, Suite 300 617 Detroit Street, Suite 100 Southfield, MI 48076 Ann Arbor, MI 48104 or Contiguous Tel: 1.866.540.0310 Tel: 734.994.3100 275,000 SF Fax: 734.222.9045 Fax: 248.540.1038 Catellus Group, LLC 810-695-7700 www.colliers.com/detroit www.colliers.com/annarbor Our Knowledge is your Property

FOR LEASE APARTMENT BUILDINGS DEARBORN, MICHIGAN CRAIN’S Hendricks & Partners Columbus, OH 7,500 sq. ft. Repair Facility 36 Units - Bloomfield, MI •Total Property Size 1,713 Units 90% Two - Bedrooms With large fenced yard Great Location! •Over 1,100 Townhomes EXECUTIVE Rick Brace 248-341-3319 •Close Proximity to Major Freeways (I-270 & I-70) 313-506-0534 [email protected] •Value-Add Opportunity www.hendrickspartners.comk •Over 5 Million Spent on Recent Renovations Office/Condos Available •No Set Asking Price, Estate Sale Excellent visibility, Excellent traffic RECRUITER For More Info Please Contact: AVAILABLE NOW counts and Three great locations in Barry Swatsenbarg, COMMERCIAL PROPERTIES 4,000 to 100,000 sq. ft. Ferndale and Walled Lake MANAGEMENT Richard Deptula or Scott Barrie 1533-1671 sq.ft. WE BUY SHOPPING CENTERS 248.324.2000 Also 10,000 & 25,000 sq. ft. We are principals who can close quickly. Free Standing Bldgs w/truckwells. Starting in the low 200’s Call David at Next Realty 847-881-2007 34975 W Twelve Mile Rd Blue Cross Blue Shield of Michigan or email: [email protected] Farmington Hills, MI 48331 1 Mile from Metro Airport www.friedmanrealestate.com 810-923-4964 DIRECTOR - PROCUREMENT Brokers Protected REA CONSTRUCTION Blue Cross Blue Shield of Michigan is the (734) 946-8730 VACANT LAND leading non-profit health care corporation in AUCTIONS Also Heavy Industrial the state. Our business continues to grow be- Land Available Vacant Land cause of the pride we have in what we do. If you’re a highly motivated individual, consider www.reaconstruction.net By Owner joining our diverse team as we position our- REAL ESTATE AUCTIONS 1840 East Valley selves for the future. Heart of Bloomfield Hills 3 acres - $1,600,000 Job Duties include but are not limited to - August 1, 2007 INVESTMENT PROPERTY Sacrifice - must sell A high level and very visible position that will Our Knowledge is your Property ATTENTION REAL ESTATE INVESTORS - Bloomfield Hills set the vision for a cross functional team to Prime 9,500 S.F. multi-tenant office / retail building 1457 Club Drive develop strategies and solutions to support for sale. Views of Lake Chalevoix in Boyne City, MI. Directly on Forest Lake business units and subsidiaries Available space for owner occupant. $995,000 Over 2 acres - 180 x 574 (248) 539- 3332 Brokers Protected. Land contract terms Oversee the development and implementa- Sacrifice - must sell tion of sourcing strategies $1,520,000 OFFICE SPACE Design and Lead initiatives within the de- Call (248) 568 - 3077 partment to promote transparency in the BIRMINGHAM ACCOUNTING FIRM on Telegraph at contracting process 13 Mile - Office/Suite available including receptionist, • Manage key relationships with strategic conference room, kitchen, private entrance, fax, cop - 24 LUXURY BUILDING SITES customers and suppliers ier. Gale or Sue at (248) 540-0250. 8393 Holly Rd. 3325 Orchard Lake Rd. 35555 Plymouth Rd. Paige & Company, P.C. • Experience with managing Contract Clarkston - 1 Mile from New McClarin Hosp. Holly Keego Harbor Livonia WOODWARD - MAPLE/BIRMINGHAM Administration activities Huntington Bank Bldg. 2,600 sq. ft. for lease on 1st $3.8 M -- L.C. TERMS • Experience with building a Total Cost of fl., marble reception area, mahogany offices. Also, Ownership (TCO) supplier ranking matrix 3rd fl., 3,000 sq. ft. Class A Bldg. Broker 1-248-642-4488 Call RW Watson 248.646.5000 • Develop and implement departmental Warren - prime office bldg for lease. Located on Re/Max in the Hills policies and procedures Hoover & 11 1/2 mile, across from St John Macomb • Seven (7) to ten (10) years experience in Hospital. Zoned medical/general office bldg. related field including experience in a 1650 or 3300 sq ft. (586) 416-2801 Ask for Nick INTERNATIONAL REAL ESTATE procurement managerial role We have agreements with 40+ Countries for • Bachelor’s Degree in Business Administra - CRAIN’S EXECUTIVE RESIDENTIAL, MANUFACTURING, OFFICES, etc. tion, Supply Chain Management or related Kessler and Company Realty field required. A Masters degree is prefer RECRUITER WORKS! 248-643-9099 ext 103 - Irv Kessler red. 301 Huron Ave. 214 Dexter St. 5600 US-31 [email protected] • Certified Purchasing Manager (C.P.M.) Port Huron Elk Rapids Traverse City certification preferred Crain’s Detroit Business CONTACT: Executive Recruiter gets results ARI GELBERMAN LAND PROPERTIES [email protected] 1.86 acres, zoned office Avon/Rochester Rd BuyBuy OneOne AdAd Fax- 248-448-5764 Rochester Hills Call today for more information 22.9 acres, zoned AG. GetGet thethe secondsecond atat or to place your ad. NWC O’Dell/US-31 * Kewadin 50%50% offoff (313) 446-6068 US-31 & Bridge St. 1183 Airport Access Dr. 2.0 acres, zoned office Elk Rapids Traverse City Garfield/US-31 South • Over 83% of Crain’s subscribers read EQUAL OPPORTUNITY EMPLOYER Acme the classified section Bonus • 96% of our subscribers attended college All Classified ads • 77% are college graduates** run on our For brochure, terms of sale and bid packet, call toll free: 800.541.1610 Web site CRAIN’S EXECUTIVE * • Available on 3 inch or larger ads or • Both ads must be placed on a single consecutive order for one month • No copy changes RECRUITER WORKS! Visit our websites: www.COLLIERSAUCTIONS.com & www.colliers.com ** Erdos & Morgan 2005 DETROIT BUSINESS MAIN 07-02-07 A 19 CDB 6/29/2007 9:13 AM Page 1

July 2, 2007 CRAIN’S DETROIT BUSINESS Page 19 BUSINESS DIARY National City to add 6-8 ACQUISITIONS perWorks CAE software suite in its cell phones and mobile devices. product development. Storage Opportunity Partners L.L.C., Trusted Solutions, Novi, is a new pro- Farmington Hills, has announced the Walt Michal’s RV Superstore, gram of geriatric care management acquisition of its first two properties — Belleville, has signed a five-year, services designed to improve the qual- branches as part of plan Mom’s Attic Self Storage in Taylor and $500,000 deal with the Michigan Inter- ity of life for older adults and their Armored Self Storage in Milford, Mass. national Speedway in Brooklyn to pro- families by connecting them to re- Mom’s Attic has 412 units, 55,550 vide services for the track’s nine sources, services and support that will square feet of rentable space and more campgrounds. Walt Michal’s will set enable them to remain in their homes. than 250 parking spaces for storing up a 30-spot “luxury” front row on pit Telephone: (248) 305-7721. to boost market share RVs. The Milford facility has 445 units row that includes 30 rental motor Nonprofit Enterprise at Work, an Ann coaches for use by companies to enter- and 45,075 square feet of rentable space. Arbor support organization for non- BY TOM HENDERSON tain corporate clients. profits, is offering npServ, an informa- CONTRACTS Hella, a Plymouth automotive lighting tion-technology software and service CRAIN’S DETROIT BUSINESS BANKS’ MARKET SHARE for nonprofits. NpServ provides soft- supplier, and Chinese automotive National City Bank By deposits, as of June 30, 2006 The Detroit Medical Center, Detroit, manufacturer Geely, have signed a let- ware for a nonprofit’s existing com- has complet- and Dearborn-based physician organi- ter of intent to jointly work on the de- puter equipment along with backup ed a market study of Southeast For Michigan zation United Oakwood Providers have velopment of automotive electronics support through its data center, as Michigan and is about to embark LaSalle Bank Midwest 15.2% entered into an agreement that extends components and systems. Hella will well as ongoing technical support. on an expansion plan that hopes UOP’s network of specialty services to Comerica Bank 14.5% provide Geely with technical support to add six to eight new branches Children’s Hospital of Michigan and the packages for vehicle body electronics. LITERATURE JPMorgan Chase Bank 11.2% Rehabilitation Institute of Michigan. in the next two years, according Cobasys, Orion Township, supplied Fifth Third 8.9% The agreement also provides for direct The Wayne State University Alumni As- to David Boyle, who became pres- its NiMHax nickel metal hydride bat- access and preferred status for UOP pa- sociation, Detroit, has launched Let’s ident of the Troy-based Michigan National City 6.9% teries for hybrid electric heavy-duty tients and members at all DMC hospi- Go, an electronic newsletter and area trucks developed by Armor Holdings operations in January. tals for tertiary specialty care. guide. Wayne State alumni can sub- For Metro Detroit Inc. for the U.S. Army. He said each branch would The Specs Howard School of Broad- scribe by registering for free at LaSalle Bank Midwest 23.0% NeuroHealth, Troy, renewed a two-year cost about $2 million and would cast Arts has entered into formal www.alumni.wayne.edu/W3. Others 22.8% agreement to provide neurotherapy require about eight full-time em- Comerica Bank transfer agreements with Adrian Col- can read it at www.alumni.wayne. training and other mental health ser- JPMorgan Chase 14.8% lege, Adrian, and Northwood Universi- edu/publications. ployees to run. vices for juvenile offenders at the ty, Midland. Graduates of the South- Boyle said Flagstar Bank 6.5% Nokomis Skills Challenge Center in field school’s single-concentration NEW SERVICES he hopes to National City 6.5% Prudenville. The center is a Michigan program can transfer up to 20 credits Department of Human Services agency. The Michigan Department of State, take the bank Source: FDIC as electives toward any program at Lansing, has installed a self-service from No. 5 in Adrian. Specs Howard’s agreements Qualitech, Bingham Farms, was se- station at the Frank J. Lada Allen Park deposit share P.L.L.C. and head of its financial with Northwood allow Specs Howard lected by Dawda, Mann, Mulcahy & Community Center, 15800 White St., graduates to transfer up to 29 elective Sadler, a Bloomfield Hills law firm, to Allen Park, for renewing license plate in both the institutions practice, said the credits of the single-concentration upgrade its existing network with an tabs. The station allows customers to state and the timing of National City’s local ex- program toward a Northwood man- Enterprise Exchange Server complete scan their license plate renewal form, region to No. 3 pansion struck him as odd. agement BBA and to transfer up to 37 with anti-virus and spam filtering. pay with a credit or debit card, and in coming “If I were them, I’m not sure I’d elective credits from Specs Howard’s American Axle & Manufacturing Hold- leave with their tabs. years. He said be expanding right now. I’d wait dual-concentration program. ings Inc., Detroit, has won a contract Boyle United Home Health Services, Canton another mar- and see what’s going to happen The Christman Co., Ann Arbor, has to build rear axle modules for Chinese Township, is now offering caregiver/ ket study of the entire state will with ABN. If the Royal Bank of been selected to provide construction automaker Chery Automobile Co. Ltd. companion services and geriatric care management services for the $27.3 mil- American Axle will produce the mod- management for seniors in addition to begin next spring, which will Scotland is the successful bidder, lion Marvin Danto Engineering Develop- ules at a plant in Changshu, China. skilled home care. Telephone: (734) help determine broader expan- there’s going to be a tremendous ment Center at Wayne State University, 981-8820. sion plans. overlap and a lot of branches EXPANSIONS Detroit. Christman is also providing Unival Inc., Ann Arbor, has an- “There are pockets in the state available.” design-build services on the South Vil- Children’s Hospital of Michigan, De- nounced a complete suite of services where we could have better pres- “Michigan is a big territory for lage parking structure for Wayne troit, has opened a pediatric neurolo- for medical providers converting pa- ence,” he said. us. It’s the second-largest market State. gy and physical medicine and rehabil- per records to digital format for elec- Boyle said expansion could be in our footprint, second to Cleve- Children’s Hospital of Michigan, De- itation clinic at 25614 Ford Road in tronic medical record systems. augmented by acquiring smaller land,” Boyle said. “We’re one of troit, has contracted with Best Upon Dearborn Heights. Telephone: (313) Internet2 FiberCo., Ann Arbor, and Request, Cincinnati, to provide on- 993-2596 for neurology and (313) 993- Ciena Corp., Linthicum, Md., an- banks; by possibly purchasing the largest banks in the state of site concierge services to hospital em- 2757 for physical medicine and reha- nounced they have teamed to provide some of the 18 branches recently Michigan. It’s time we acted our ployees, patients and guests. bilitation. a suite of customized professional ser- closed as a result of last year’s size. ... I’m here to be a big dog on Pulse220, a Southfield-based market- The Arab American & Chaldean Coun- vices and optical networking equip- merger between Flint-based Citi- the block.” ing firm, has signed deals to handle cil, Detroit, opened its third WIC office ment to assist Internet2 members zens Banking Corp. and Arbor- the 2007 national convention for at 8740 Jos. Campau in Hamtramck. with their advanced network infra- “Over the last several years, Farmington Hills-based Wireless Toyz, The ACC/WIC offices have bilingual structures. based Republic Bancorp Inc.; and National City has done a very a mobile phone service and accessory staff to serve Middle Eastern clients. by the possible purchase of any good job of revamping its entire company, and all Cleveland-based Na- Telephone: (313) 581-1105. STARTUPS LaSalle Bank Midwest branches retail offering. It should benefit tional City’s corporate events and Forever Silver by Erwin Pearl has that might be sold once that from both a stepped-up product branch openings in Michigan. Michigan Healthcare Improvement opened in the Detroit Metropolitan L.L.C., Trenton, provides analysis and bank’s sale is approved. offering and improved market- Affinia Group Inc., Ann Arbor, has Wayne County Airport’s Concourse A consulting to hospitals and physician The Netherlands-based ABN ing and should pick up market signed a joint-venture agreement with in Romulus. The New York City-based groups for improving quality, reduc- MAT Holdings Inc., a European and jeweler specializes in precious metals Amro Holding N.V. had announced share over time,” said Jason ing costs and increasing revenue. the sale of LaSalle to the Bank of Asian supplier, to produce brake and pure silver. Dawn Hall is MHI’s principal and Goldberg, managing director and products in China and India. The new founder. Web site: www.michigan America Corp. for $21 billion in senior research analyst for large- manufacturing and distribution cen- MOVES healthcareimprovement.com. Tele- April, but a Dutch court blocked cap and mid-cap banks for New ters will be located in New Delhi and L&R Construction Services, from 586 phone: (734) 771-0726. that sale following a hostile bid Shanghai. York City-based Lehman Bros. Broadway, Suite No. 2, Davisburg, to Rapid Rescue, St. Clair Shores, dis- for ABN Amro’s U.S. operations Divdat Inc., formerly Diversified Data National City Michigan has 16749 Dixie Highway, Suite 9, Davis- tributes the Personal Retriever, a by the Royal Bank of Scotland & Communications, Ferndale, has re- had a series of CEOs recently. burg. Web site: www.lrconstruction. Coast Guard-approved rescue device Group plc, the parent company for tained Identity Marketing & Public Re- com. that can be thrown up to 100 feet to a Boyle replaced Ted Parker, who lations, Bingham Farms, to provide Detroit-based Charter One. The Michigan Institute for Health En- water or boating accident victim and replaced J. Michael Davis in Octo- marketing and public-relations sup- hancement has moved its Macomb has enough buoyancy to keep a con- BOA has no Michigan opera- ber 2005. Davis, in turn, had been port and counsel. County office from Rosevile to 30061 scious adult afloat. Once victims grab tions and if its bid is successful, on the job for just nine months. Commercial Maintenance Inc., a Schoenherr, Warren. Telephone: (248) the disc, they can be pulled to safety. industry professionals expect any “I’m here for the long term,” Madison Heights industrial and com- 475-4880. Telephone: (586) 354-6475. Web site: LaSalle closings to be minimal. mercial cleaning and maintenance www.rapid-rescue.com. Boyle said. But if the Royal Bank of Scotland company, has named Bianchi Public NAME CHANGES National City recently opened Relations Inc., Troy, its public-rela- OTHER prevails, Charter One’s large pres- a branch in Detroit at Vernor and tions agency of record. HealthCore, the Detroit-based home ence in the local market would Tuffy Associates Corp., Toledo, an- Livernois and has branches open- Rand Construction Engineering Inc., health products and durable medical likely lead to numerous branch equipment arm of the Henry Ford nounced that Gerald and Nicole Huff- ing in Lyon Township in Septem- Brighton, has completed a 20,000- man have acquired the franchise for closings or divestitures. ber and Southfield in November, square-foot office and manufacturing Health System, has changed its named to Henry Ford Health Products. Prod- the Tuffy Auto Service Center at 7411 “We have an appetite for acqui- unrelated to the new plan. center for Production Services Man- W. Eight Mile Road, Detroit. Tele- agement Inc., Saline. ucts available on the site include the sitions and a strong capital base,” In March, Fifth Third Bank, East- Cover FX cosmetic products line, vita- phone: (313) 862-2886. said Boyle, referring to Cleveland- Albert Kahn Associates Inc. and De- ern Michigan announced its expan- mins and herbal supplements, season- based National City Corp. (NYSE: Maria Building Co., both of Detroit, al affective disorder lamps, a medical sion plan for Southeast Michigan, have been selected by Biodiesel Indus- professional product line and a full NCC), the bank-holding company which called for at least 30 new tries Inc. to design and construct its line of home medical and respiratory DIARY GUIDELINES which in May announced it had branches by the end of 2009. new 13,000-square-foot biofuel produc- products.Web site: www.henryford agreed to buy MAF Bancorp Inc., a Greg Kosch, president of Fifth tion plant near Detroit’s New Center. healthproducts.com. Send news releases for Business bank with 82 branches and $11.1 Albert Kahn Associates is providing Diary to Joanne Scharich, Crain’s Third Bank, Eastern Michigan, billion in Illinois and a strong said the bank was wrapping up planning, design and engineering ser- NEW PRODUCTS Detroit Business, 1155 Gratiot vices, while DeMaria is providing pre- Ave., Detroit, MI 48207-2997 or presence in Chicago. details for its expansion. construction and construction man- Behr America, Troy, has developed an send e-mail to jscharich@crain. Last July, National City Corp. “I can’t argue with National agement services. improved exhaust gas recirculation com. Use any Business Diary item bought Florida-based Fidelity City’s strategy, since we’re doing Monts Media, Detroit, has been cooler that adheres to the latest U.S. as a model for your release, and emissions standards for heavy trucks. Bankshares Inc., with $4.2 billion the same thing. They’re a good named marketing and communica- look for the appropriate category. in assets, and Florida-based Har- competitor and I’m glad they’re tions agency of record for Visiting An- Without complete information, your bor Florida Bancshares Inc., which going to be investing in the com- gels of Detroit. NEW SERVICES item will not run. Photos are has assets of $3.2 billion. munity,” he said. Altair Engineering Inc., Troy, an- Awecomm Web Strategies, Troy, now welcome, but we cannot guarantee nounced BSH, a German appliance provides mobile Web site design ser- they will be used. Brian Pollice, a partner at Tom Henderson: (313) 446-0337, manufacturer, is using Altair’s Hy- vices for Web content accessible on Southfield-based Plante & Moran [email protected] DETROIT BUSINESS MAIN 07-02-07 A 20 CDB 6/29/2007 6:45 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS July 2, 2007 Lottery contract draws complaints

LANSING — An im- Michigan instant-ticket op its request for proposals and agency. Jennifer Granholm’s 2006 re-elec- pending contract for a distribution to its printing told lottery officials that several Edelson, formerly the MEDC’s tion campaign. He previously held major upgrade of state business, it would give the lotteries have demonstrated that a senior vice president for interna- government-affairs positions with lottery operations is company the ability to bid limited list of contractors can be a tional business development and Consumers Energy Co. and parent sparking criticism that a for more lottery work in successful business strategy. governmental affairs, has formed CMS Energy Corp. piece of the business other states, ultimately “My primary job is to design a a public affairs and management The MEDC has not named a re- should have been sepa- bringing new ticket-print- system that is the most efficient, consulting firm that has signed on placement for Edelson. rately bid. ing business to Michigan and operates with 100 percent in- as an independent contractor for At issue is a Michigan Bu- and adding jobs. tegrity and accountability,” Peters the MEDC. reau of State Lottery con- “Some of the states will said. One contract is to represent the Comings & goings tract for services and put the distribution of tick- Gtech Corp., the vendor who cur- MEDC on public-policy matters CAPITOL BRIEFINGS ■ Dennis Muchmore, of counsel to equipment that are at the ets into the printing, and rently supplies the lottery’s termi- and government relations, for a re- Amy Lane core of the lottery’s opera- without the experience in nals, also handles instant-ticket tainer of $7,000 a month, up to Lansing lobbying firm Muchmore tions, including supply of retailer the distribution of the tickets, they distribution. Gtech was the only $49,000. A second contract is to rep- Harrington Smalley & Associates Inc. electronic terminals and computer (Pollard) can’t bid on it,” Nobles company to bid on the lottery’s resent the MEDC on international and formerly executive vice presi- systems, telecommunications struc- said. new contract. The bid period trade development with Israel, for dent in the Lansing office of execu- ture, and distribution of the lot- He is president of District Coun- closed June 19, and the lottery payment of $2,000 a month, up to tive-recruiting firm DHR Interna- tery’s instant tickets. cil 3 of the Graphic Communications hopes to make an award in late Au- $14,000. Both contracts began June tional Inc., has been named Steve Nobles, president of a Conference of the International Broth- gust or early September. 15 and end Jan. 15, 2008. executive director of the Michigan union district council that repre- erhood of Teamsters. The union rep- The conversion to the lottery’s Mike Shore, the MEDC’s chief United Conservation Clubs. He fills a sents graphic arts workers at an resents about 5,800 graphic arts new system, which lottery officials communications officer, said the post vacated in February by Sam Ypsilanti plant that prints the lot- workers in the Midwest, including said would encompass “state of the MEDC in the past has had outside Washington, who retired. 175 at the Ypsilanti plant. tery’s instant tickets, said that if art technology” and include new legislative counsel and Edelson ■ Peter Lark, chairman of the the lottery had separated out the But Lottery Commissioner Gary lottery terminals and faster, more has strong contacts in Lansing and Michigan Public Service Commission, instant-ticket distribution, it could Peters said “it makes sense to have efficient printers, is scheduled to in Washington. has been selected to become gener- have meant more business for tick- integrated contracts. You get effi- be complete in January 2009. Edelson said the contracts con- al manager of the Lansing Board of et-printer Pollard Banknote and ciencies and therefore lower costs tinue directions he had worked on more jobs for Michigan. when they’re integrated … and MEDC exec become contractor at the MEDC. He said having his Water & Light municipal utility. Pollard’s Ypsilanti plant pro- you have greater accountability as own business, The Edelson Group, Lark is expected to assume his duces tickets for lotteries through- well.” He’s left the Michigan Economic has been a long-time goal. new duties in mid-July. out the country. Nobles said that if Consultant Battelle, in Colum- Development Corp., but Howard Prior to joining the MEDC in Amy Lane: (517) 371-5355, alane@ Pollard had been able to add bus, Ohio, helped the lottery devel- Edelson hasn’t gone far from the January, Edelson managed Gov. crain.com Barracuda: GM ad shifts may mean IRS releases draft of Opens office 990 nonprofit form ■ From Page 1 Burnett, McCann changes The Internal Revenue Service late last week gineering school was good. And there released a draft of the new 990 nonprofit tax weren’t a lot of software-development form it plans to have completed for the 2008 companies there to compete with. BY BILL SHEA WorldGroup. filing year and opened a three-month com- You don’t have the massive number CRAIN’S DETROIT BUSINESS In the meantime, McCann has “irons in ment period on the form. of software companies that you have the fire” on replacing the Buick account With the new form, the IRS aims to in- in Boston or Silicon Valley, which The local fallout, both good and bad, from with new business, he said, but declined to crease the transparency of nonprofits and would be good for our ability to re- General Motors Corp. ’s decision to shift its offer specifics. The agency plans to contin- promote compliance with federal require- cruit.” Buick creative work from one metro Detroit ue its nonautomotive diversification and he ments, while minimizing the filing burden, Drako said he hired six developers ad agency to another will play out over the noted that some employees worked on more about two months ago and took them next three months. said Lois Lerner, director of the IRS’s exempt than just Buick. organizations division. to California for training. He said he Troy-based Leo Burnett Detroit, which just “Our plan is clearly to replace that busi- The draft, posted at http://www.irs.gov/ now employs 10 developers in the a year ago lost its Cadillac account to a ness. It’s just a matter of time before we do charities/article/0,,id=171216,00.html, re- Main Street office “and we’re on a re- Boston agency, will take over the $122 mil- that,” he said. cruiting mission even as we speak. lion Buick account on Oct. 1 from the Birm- Even with the Buick loss, McCann re- quests more information on things like board I’ve got people getting on a plane to fly ingham office of McCann-Erickson, which has mains GM’s largest advertising agency, re- structure, conflict of interest and whistle- to Ann Arbor to recruit another five had the work since the 1950s. taining its corporate work, some Chevy work blower policies, subsidiaries and joint ven- or six.” GM made the announcement June 27. It’s and oversight of ad campaigns in 50 coun- tures, executive compensation, employment, “This signals the change our state also moving its $261 million GMC account to tries, Neel said. The agency’s other notable excise and unrelated business income, busi- is going through, moving to a knowl- Leo Burnett from New York-based Lowe local clients include Delphi Corp. and the De- ness taxes and the benefit nonprofit hospitals edge-based economy,” said Michael Worldwide, also part of the Interpublic Group of troit Medical Center. bring to their communities. Ann Arbor Spark Finney, CEO of , a non- Cos. that owns McCann. GM shifting Buick wasn’t shocking, said A new schedule specifically aimed at non- profit economic-development organi- New jobs at Leo Burnett and layoffs at Gary Topolewski, an auto advertising in- profit hospitals “is our first crack at the IRS zation. McCann are expected. dustry veteran who owns a Ferndale ad regularizing information about community “Their commitment, while small, When Leo Burnett lost the $225 million house. He worked at Leo Burnett’s Detroit benefit,” Lerner said. now, is exciting to us. It helps us re- Cadillac account last June to Boston-based predecessor Chemistri, BBDO and the now- For nonprofit executives with diverse or cruit additional companies because Modernista, it whittled itself down to just defunct Detroit office of FCB Worldwide. complicated compensation packages, the we can show greater clusters cen- over 200 employees from about 280. A com- “I didn’t see anything that was setting the draft includes a separate schedule requiring tered around technology,” said pany spokeswoman said the new GM work world on fire for Buick from McCann,” he Finney, who referred to it as a Google will mostly be handled in Detroit and hiring said, including the spots featuring Tiger more detailed information. effect for the Silicon Valley giant that is expected over the next three months. Woods. “Buick has always been one of those The form will also include a one-page snap- opened an Ann Arbor office last year. “There will be teams added. The extent sleepy brands that hardly made any noise.” shot with information taken from the long Drako, though, said for him it was a (of hiring) will be worked out in this transi- The automaker has said its strategy is to form to give information at a glance, she said. case of coming here despite Google. tion period over the next 90 days,” said align its national creative accounts for the The draft contains 10 pages with up to 15 ad- “It was a negative, from my point of Kristin Fletcher, vice president/director of Buick-Pontiac-GMC division at a single ditional schedules. The current 990 has just view. We did it, anyway,” he said. corporate communications for Leo Burnett agency, just as it’s aligning its dealerships two schedules, but it asks for attached sched- Barracuda recently moved from its Worldwide in Chicago. The agency also has in the same fashion. The account was shift- ules in about 36 different places, Lerner said. previous Silicon Valley headquarters the Pontiac, GM Service and Parts Opera- ed to Leo Burnett without a review, just as The IRS also has revised its instructions in Mountain View, right next to GM Goodwrench the Cadillac work last year. tions division and accounts for completing the form to put them in plain Google’s headquarters, to a bigger of- in Detroit. Buick is a natural fit with GM’s other language and included an alphabetical glos- fice in neighboring Campbell. Meanwhile, possible job losses loom at business now at Leo Burnett, Topolewski “We seem to be competing with the 280-person McCann office. said, and it’s a positive that the work re- sary of terms, she said. Google for employees wherever we “Any time you have an account that large mains here. The comment period on the draft ends go,” he said. (lost), there’s a high risk of layoffs. It will “It’s staying in Detroit, which is a good Sept. 14. The IRS will again take comments Tom Henderson: (313) 446-0337, certainly impact a number of people,” said thing,” he said. before it releases the final form, Lerner said. [email protected] Garry Neel, president and CEO of McCann Bill Shea: (313) 446-1626, [email protected] — Sherri Begin DETROIT BUSINESS MAIN 07-02-07 A 21 CDB 6/29/2007 6:04 PM Page 1

July 2, 2007 CRAIN’S DETROIT BUSINESS Page 21 Tax: Effects are unclear; debate is not over www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or makers did address several key concerns [email protected] What’s in store ASSOCIATE PUBLISHER Christopher Crain, (313) BY THE NUMBERS raised by business. Partnerships, for example, 446-1645 or [email protected] The new Michigan Business Tax, first un- will be able to deduct the money paid partners EXECUTIVE EDITOR Cindy Goodaker, (313) 446- The new Michigan Business Tax includes: 0460 or [email protected] veiled in a June 13 agreement, includes a base from the business-tax base, just as other corpo- A modified gross receipts tax of 0.8 percent MANAGING EDITOR Andy Chapelle, (313) 446- that has two components: A modified gross-re- rate structures can deduct wages. 0402 or [email protected] levied on sales minus purchases of tangible ceipts tax that is sales minus purchases of tan- And Thom Linn, chairman emeritus of Miller, WEB GENERAL MANAGER Michael Lee, (313) gible property, and a business-income tax. The property. 446-0416 or [email protected] Canfield, Paddock and Stone plc, said that’s as it ASSISTANT MANAGING EDITOR/FOCUS Jennette A business income tax of 4.95 percent. gross receipts tax rate is set at 0.8 percent, should be. The firm would have faced a tripling Smith, (313) 446-1622 or [email protected] while the business income tax rate is 4.95 per- Credits for in-state business investment, BUSINESS LIVES EDITOR Shawn Selby, (313) compensation, and research and development. of its business tax in Michigan, under the 446-1654 or [email protected] cent. MBT’s previous version. GRAPHICS EDITOR Nancy Clark, (313) 446-1608 There are credits for in-state business invest- A personal-property tax cut of up to 65 or [email protected] percent for industrial property and 23 percent for “Your tax policy should be determined by COPY EDITOR Vic Doucette, (313) 446-0410 ment, compensation, research and develop- things independent of your form of organiza- or [email protected] ment, and a personal-property tax cut of up to commercial and telecommunications firms. DATA EDITOR Anne Marks, (313) 446-0418 or tion,” he said. “It has us paying about the same 65 percent for industrial property and 23 per- A tax increase for the finance, insurance and [email protected] real-estate sectors, as well as some non- tax as before, which is fair. It’s a good result.” WEB DESIGNER/PRODUCER Ai-Ting Huang, cent for commercial and telecommunications (313) 446-0403, [email protected] Michigan companies, but about 75 percent of Construction companies also got their con- firms. Finance, insurance and real-estate sec- EDITORIAL SUPPORT Anita Duncan, (313) businesses in Michigan are expected to pay cerns addressed over a potential tax increase. 446-0329; Joanne Scharich, (313) 446-0419 tors will see a tax increase, as will some non- less. Mike Nystrom, vice president of government NEWSROOM (313) 446-0329, FAX (313) 446- Michigan companies, but about 75 percent of 1687 TIP LINE (313) 446-6766 and public relations with the Michigan Infra- businesses in Michigan will pay less, according REPORTERS leaguered economy. If this is not corrected, we structure & Transportation Association, said con- to state officials. may as well put up a sign at the border that tractors will be able to deduct subcontracts Brent Snavely, senior reporter: Covers auto Sarah Hubbard, vice president of govern- suppliers, steel and restaurants. (313) 446-0405 reads: ‘Insurers not welcome.’ ” from gross receipts. or [email protected]. ment relations for the Detroit Regional Chamber, Robert Ankeny: Covers the city of Detroit, Wayne said the chamber supports the legislation and County government, and law. (313) 446-0404 or [email protected]. while the new MBT may not be perfect, “it pro- ‘Back-door’ increases? Banks will pay more Sherri Begin: Covers nonprofits and education. vides the stability and certainty we need for (313) 446-1694 or [email protected] The Michigan Chamber of Commerce also has Banks are among the industries to pay more Andrew Dietderich: Covers health care, economic development. concerns, and opposed the legislation as it transportation, international business and “I think philosophically this is a good bill,” taxes under the legislation, but they worked biotech. (313) 446-0315 or passed Thursday. [email protected]. she said. “It rewards investment in Michigan.” with lawmakers over the months to craft an in- Tricia Kinley, director of tax policy and eco- Chad Halcom: Covers services, environment and The tax replaces Michigan’s single-business dustry-specific tax that would be “fair and equi- Oakland and Macomb counties. (313) 446-6796 nomic development, said the chamber is identi- or [email protected]. tax, which expires at year-end. But between table” for all banks, said Gail Madziar, vice fying items that, whether inadvertent or inten- Sheena Harrison: Covers small business, retail now and then, the new MBT may see further president of communications for the Michigan and nonautomotive manufacturing. (313) 446- tional, “will lead to back-door tax increases.” 0325 or [email protected]. legislative attention. Business interests are Bankers Association. For example, she said, the lack of certain def- Tom Henderson: Covers banking, finance and looking at items they would like addressed, in- She said the new tax on capital represents an technology. (313) 446-0337 or initions currently in the SBT leaves “unan- approximate $30 million to $35 million tax in- [email protected]. cluding some measures in the new law that in- Bill Shea: Covers media, advertising and crease taxes. swered questions about how to allocate some of crease to Michigan banks, but said banks fare marketing, entertainment, the business of sports, your business income.” Some language on the and Livingston and Washtenaw counties. (313) Michigan property and casualty insurers, for better under the new structure than they would 446-1626 or [email protected] treatment of income from foreign sources also example, are excluded from an employment- have under any other tax plan debated or pro- LANSING BUREAU compensation credit that would lessen the im- contradicts federal tax laws, which may trigger posed. Amy Lane: Covers business issues at the Capitol, litigation, she said. telecommunications and utilities. (517) 371- pact of a tax increase under the new structure. The Treasury Department’s tax policy staff is 5355, FAX (517) 371-2492, [email protected]. or The MBT increases Michigan’s tax on insurers Kinley said those are just some reasons why reviewing the new law to develop an overview 115 W. Allegan, Suite 220, Lansing 48933. from 1.07 percent to 1.25 percent. “there are a lot of job providers who are already of the MBT, including how parts align with and ADVERTISING “We’re going to certainly see some higher saying, ‘We’ve got to have correction bills.’ ” differ from current tax structure, and an analy- ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] taxes, and we’ll see how that affects … rates and She said the legislation would have benefited sis of components and credits. SALES INQUIRIES: (313) 446-6052; FAX (313) the insurers in Michigan,” said James Miller, from more review and deliberation before pas- Once that’s developed, Treasury will train 393-0997 president of the Michigan Insurance Coalition. He sage. “This bill was just not ready for prime employees, develop new tax forms and instruc- NEW BUSINESS DEVELOPMENT MANAGER Cathy said legislative negotiators assured insurers time,” Kinley said. tions and move ahead with any information- Ross, (313) 446-0307, [email protected] ADVERTISING SALES Jeff Anderson, Terri that they would receive the compensation cred- But Hadden, at the manufacturers’ associa- technology system modifications or develop- Engstrom, Matthew J. Langan, Tamara Rokowski, it, but it didn’t happen. House and Senate lead- tion, said lawmakers got their job done on time. ment that’s needed, including installing new Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) ers have said there will be further legislation to “They got this done for the July 1 deadline that computer software and updating data bases, (323) 370-2477 deal with the insurers’ concern and other is- most businesses said it had to be done. And I Stanton said. He said the department may need CLASSIFIED MANAGER Melissa McKay, (313) 446-1692 sues, Miller said. think that’s an important, significant part of to hire outside contractors to assist in the con- CLASSIFIED ACCOUNT EXECUTIVE Christina “It is inconceivable that the state would im- this,” he said. “We now have some certainty, version. Jaranowski, (313) 446-1655 pose such a discriminatory treatment on one for our investments we’re going to be making “It’s a tight frame and we fully realize that. MARKETING DIRECTOR Michelle Minor EVENTS MANAGER Nicole Wiedling sector of the business community, a sector that in the state.” But we will be ready by Jan. 1.” MARKETING ASSISTANT Jennifer Dunn is growing and creating jobs in Michigan’s be- In the legislation’s final days last week, law- Amy Lane: (517) 371-5355, [email protected] MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea Beckham, YahNica Crawford CIRCULATION Candice Yopp, Manager. PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, Degree: CCS will offer grad programs with biz slant (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information ■ From Page 1 Center at [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY million to launch the new programs, said Imre benefit from us. It’s going to be a mutually col- CRAIN COMMUNICATIONS INC. Molnar, dean of the college. Crain Communica- laborative effort.” CHAIRMAN Keith E. Crain tions Inc. Chairman Keith Crain is chairman of The design projects the CCS graduate students PRESIDENT Rance Crain These companies SECRETARY Merrilee Crain the CCS board. “ participate in will be industry-sponsored, he said, TREASURER Mary Kay Crain CCS this year hired Gresham, the co-founder understand the importance where students are asked to tackle real problems Executive Vice President/Operations and former head of marketing and sales for with real constraints, issues and time lines. William A. Morrow Group Vice President/Technology, New York City-based Lucesco Lighting, to over- of design and build it into CCS is beginning to build relationships with Manufacturing, Circulation see development of the programs. The college local companies for the student projects, to aug- Robert C. Adams Vice President/Production & Manufacturing plans to hire directors to oversee both graduate their corporate strategic ment any relationships its business school Dave Kamis degrees, he said. partners already have, he said. Corporate Director/Circulation structure. Patrick Sheposh The Detroit-based McGregor Fund awarded the ” General Motors Corp. is among the local indus- G.D. Crain Jr. Founder (1885-1973) college a $165,000 grant over two years to help try supporters of the new CCS degree pro- Mrs. G.D. Crain Jr. Chairman (1911-1996) David Gresham, College for Creative Studies offset costs of launching the new degrees. Both grams. EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) programs will further elevate the college, teams, Gresham said. “When we go to design a product program for 446-6000 which already has one of the top undergraduate “These companies understand the impor- the future, obviously, there are millions of dol- Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out programs in transportation design in the na- tance of design and build it into their corporate lars on the table,” said Sheryl Garrett, manager of state, $79 one year, $138 for two years. tion, while better serving students, President strategic structure so that they can leverage of global creative resources at GM. “We need Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Dave Campbell said. those attributes as they go to market,” he said. the ability of the designer to not only under- Reprints: For inquiries call the reprints department “In all the talk about how to improve the Rather than developing its own business cur- stand the design aesthetics of (a product) but at: (800) 494-9051, Ext. 144 , or at [email protected] economy of metro Detroit, we’re talking about riculum, CCS plans to partner with leading also the business parameters.” CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is bringing in young people who will want to stay business schools to launch the graduate de- Very few design schools have graduate de- published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. here, people who are entrepreneurial and cre- grees. grees, she said. Periodicals postage paid at Detroit, MI and ative,” he said. CCS students could travel to the site of the “This is a new area where I think the design additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Companies like Whirlpool Corp., Apple Corp., other business school or faculty from that institutions are realizing they can continue to Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in Procter & Gamble Co. and Starbucks Corp. are in- school could come to teach the graduate-level enhance the automotive design field by offering U.S.A. creasingly seeing how designers can help iden- business courses at the Detroit college, Gren- these types of programs.” Entire contents copyright 2007 by Crain Communications Inc. All rights reserved. tify consumer needs, and are including design- shaw said. “I hope we can (also) build some Sherri Begin: (313) 446-1694, sbegin@crain. Reproduction or use of editorial content in any ers on executive boards and strategic-direction courses that their MBA students actually see a com manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 07-02-07 A 22 CDB 6/29/2007 6:06 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS July 2, 2007 DCX: Financial services unit moves to nearby building ■ From Page 3 based on the economic situation you can find talent, I would auditing and other support personnel. say, as easy or easier than in other states,” Entenmann said. AT A GLANCE Entenmann said employees will be able to maintain The need to split up the financial services divisions be- friendships since they aren’t moving far. came evident in May when DaimlerChrysler AG announced Berlin, Germany-based DaimlerChrysler Financial Services and must split apart due to the pending acquisition “I would say it’s an emotional challenge … because we put plans to sell a majority interest in Chrysler and Chrysler Fi- Chrysler Financial of Chrysler Group by Cerberus Capital Management L.P. something together which was very successful,” Enten- nancial for $7.4 billion to New York City-based Cerberus Capi- As of today, the company has a global loan and financing mann said. “You have a lot of business friends in the compa- tal Management L.P. portfolio of about $150 billion. Its Farmington Hills-based ny and you are going now in two directions that are also im- That transaction is expected to close during the third America’s division, called DaimlerChrysler Financial Services pacting some ... work relationships and friendships.” quarter. Americas L.L.C., employs about 5,300, serves both North and DaimlerChrysler Financial Services received a $500,000 During negotiations, Chrysler Financial was widely South America and manages the following $102.7 billion loan grant from the Michigan Economic Development Corp. and is in viewed as Chrysler’s best asset and was valued at $6 billion and financing portfolios: talks with Oakland County for additional job-training by Morgan Stanley analyst Adam Jonas in a research report Ⅲ Chrysler Financial: $73.5 billion grants, Maureen Krauss, Oakland County’s deputy director in April. Ⅲ : $19.1 billion Mercedes-Benz Financial for economic development and community affairs, said. David Cole, chairman of the Ann Arbor-based Center for Ⅲ DaimlerChrysler Truck Financial: $9.9 billion Automotive Research, said Chrysler Financial was likely “We are thrilled to not only have them remain here, but to Ⅲ Other: $200 million viewed as a profitable plum by those that bid on Chrysler. have an expansion of jobs,” Krauss said. “The financial services arm has historically been a very Source: DaimlerChrysler Financial Services Americas L.L.C. The deal also is a boon for DaimlerChrysler’s new land- profitable part,” Cole said. “There has been speculation that lord, Kojaian Cos. DaimlerChrysler Financial Services will portfolio of $102.7 billion and consists of Chrysler Financial, it might somehow be woven together with GMAC.” occupy a 153,000-square-foot, four-story building that is part Mercedes-Benz Financial and DaimlerChrysler Truck Financial. DaimlerChrysler Financial declined to comment on spec- of Farmington Hills Corporate Campus. The truck financial arm supports Freightliner L.L.C., Daimler- ulation that Cerberus, which also owns 51 percent of GMAC Chrysler’s commercial truck division. Located at 12 Mile and Halsted roads, the 134-acre com- Financial Services, would combine the two entities. Chrysler Financial, with a $73.5 billion portfolio, is the mercial office park is now 95 percent leased, said David However, in a story in May in Crain’s sister publication largest division. Haboian, senior vice president of Kojaian. Automotive News, Paul Knauss, who has been selected to be- Entenmann said Mercedes-Benz Financial and Chrysler The office park is home to GDX Automotive, Alcoa Inc.’s Au- come CEO of Chrysler Financial, said a merger with GMAC tomotive Center and Allstate Insurance Co. is unlikely. Financial are interwoven. Mercedes serves about 340 dealer- ships while Chrysler serves about 4,000 dealerships. Haboian declined to disclose the lease rate but confirmed DaimlerChrysler Financial plans to begin moving em- that Kojaian had been marketing the building at $24 a ployees to its new building in early August, Entenmann “We integrated a lot related to processes in (information square foot. Birmingham-based Landry + Newman Architecture said. And while the relocation of employees will take just a technology) and that’s also the big challenge, or the big work is designing the interior. few weeks, separating the two companies will take much we have in front of us, to separate this again,” Entenmann Meanwhile, the building on Inkster Road is owned by longer. said. “It’s possible, but it takes a lot of effort to really make “I would say the move is the easier part,” Entenmann the separation happen and to make two companies stand DaimlerChrysler and ownership of that building will be as- said. “And the other part is really separating processes and alone again.” sumed by Cerberus when acquisition of Chrysler is com- the (information-technology) systems. It will take a few Separating the companies also creates a need for a larger plete. months to make this happen.” staff for both companies, Entenmann said. “What we’re hoping is as they restructure there will be The financial services companies provide the financing The companies estimate they need about 200 new workers additional positions added,” Krauss said. “They were pretty that dealers need to purchase their new car inventory and at both companies with about 100 of those new positions tight in there. So this actually gives them some space for fu- provide loans and leases to car buyers. opening up in Farmington Hills. ture growth.” DaimlerChrysler Financial Services Americas manages a Many of the new jobs will be in finance, risk management, Brent Snavely: (313) 446-0405, [email protected]

Building: For sale? Flying: Travelers make changes ■ From Page 3 ■ From Page 1 the note. In an October 2004 appraisal, individuals are seeking other options on their own. During bankruptcy proceedings, Northwest said it Layne said the partnership Kent Steele, with Real Estate Re- Margaret Einhaus, director of the business devel- needed to cut labor costs by $1.4 billion and in its an- “will present an offer to the coun- search Corp. of Chicago, who eval- opment and health care groups at the Southfield office nual report said it accomplished the goal. ty on July 16, at a competitive uates historic buildings, gave the of Watson Wyatt Worldwide, said she’s flown more than According to a June 26 report from the U.S. Depart- lease rate. We are dedicated to building a $1 value, saying that 50,000 miles on Northwest since July 2006. ment of Transportation, the number of full-time-equiva- working with the county to find a costs of maintenance and upkeep “I’m at the point of requesting that I be booked on lent employees at Northwest dropped from 39,300 in way to continue our relationship on the structure exceed its capac- any other airline rather than NWA,” Einhaus said. April 2003 to 29,000 in April 2007. That’s a 26.2 percent in a mutually beneficial manner, ity to generate revenue. “Almost any other flight experience I’ve had has been reduction; second-most in network carriers behind whether through a new lease or If Ficano and the county com- more pleasant.” sale of the building,” Layne said. mission decide not to renew the Between June 14 and June 21, 504 Northwest flights U.S. Airways, which had a 27.2 percent reduction. The $31 mil- lease on the building, Wayne were canceled, according to FlightStats.com, a con- Northwest had 6,103 pilots in 2001 but that number lion debt grew County will be looking for space sumer Web site that tracks commercial flight activity. dropped to 4,531 last year, according to the federal Bu- from a $4.3 elsewhere downtown this year. Between June 22 and press time on June 29, 1,241 reau of Transportation Statistics. million note A fiscal agency review of flights were canceled. That doesn’t help Larry Carlson, principal of Clark- signed for pur- prices for the 181,000 square feet Northwest said it’s canceling its second Detroit-to ston-based Carlson & Associates, a real estate consult- chase of the of space needed shows prices Frankfurt, Germany route, effective July 18, freeing up ing firm. He flies about 100,000 miles a year. building by ranging from $2.4 million a year 757 pilots to fly other routes, and recalling nearly 400 pi- Northwest’s problems caused him to miss an im- the partner- ($13 a square foot) in the First Na- lots. New hires also are possible, as are canceling portant dinner meeting with a client in Minneapolis ship in 1986 tional Building to $3.5 million a flights further in advance. because he was four hours late, he said. A normally and held by year ($19.50 a square foot) in 211 Terry Trippler, who monitors travel and fares for five-hour trip took nine hours, he said. Layne the Wayne West Fort St. Minneapolis-based MyVacationpassport.com, said there is He is supposed to travel to Charlotte, N.C., in two County Economic Development These are gross lease rates, some merit to Northwest’s claim that weather was a weeks and already is considering other options. Corp., said Turkia Mullin, assis- with no extra charges for operat- problem. His site informs subscribers about travel tant county executive. ing and administrative expenses, news. “I’ve traveled probably 4 million miles since the ear- The note contained no specific In the Old County Building, But he said Northwest is trying to get by with as ly 1980s and I’ve never seen it this bad,” Carlson said. repayment terms, but interest the rate is $30.15, triple net lease, few employees as possible, causing employee fatigue. From April 2006 to April 2007, the number of full- has accrued for 20 years. No pay- totaling nearly $5.5 million a Pilots, for example, are working up to 90 hours a time equivalent employees at Northwest dropped 3.4 ments were made during the first year, including expenses such as month in the cockpit, the maximum they can work ac- percent, leading the way for the seven major carriers. 10 years of ownership. But when maintenance and capital im- cording to their contract. And in the last quarter, salaries, wages and benefits a second 10-year lease was writ- provements, all paid by the coun- When weather or other problems mean airlines dropped from $676 million to $615 million. ten in 1997, Mullin said questions ty, Mullin said. need to catch up, pilots burn through their hours The airline hasn’t cut back on capital expenditures, raised by “political fallout” Layne said, in addition to Farb- faster and get too tired, Trippler said. however. about costs of the lease prompted man, general partners in Old And though Northwest has said it plans to hire In a May 10 quarterly report filed with the U.S. Secu- the partnership to begin offset- Wayne County Building L.P. are more pilots, Trippler said he’s telling people not to rities and Exchange Commission, Northwest said it had ting $1 million a year against Southfield attorney Henry Wine- book with Northwest the last weeks of July or August. taken delivery of an Airbus A330 aircraft and boasted rents, amounting to $9.5 million man II; Jack Martin, a Detroit Because pilots get a fresh 90 hours at the beginning of of having one of the youngest trans-Atlantic fleets in through 2006 in payment toward CPA and owner of Jack Martin & the month, problems should quickly disappear starting the note. The remaining debt, Co. P.C.; Lou Glazier of Franklin Ad- today, Trippler said. But the company needs to act fast the industry. Mullin said, is $31 million. visors L.L.C., Farmington Hills; and or the same problem will reoccur at the end of July. It plans to launch a new Boeing 787 in August 2008 A November 2005 appraisal by Janice Frazer. There are also 48 “When this happens, it affects tens of thousands of and has ordered 72, 76-seat regional jets it plans to in- CB Richard Ellis set the value of limited partners. people. It doesn’t just affect the people traveling but troduce this quarter. the Old Wayne County Building Robert Ankeny: (313) 446-0404, the people waiting and counting on them,” Trippler Andrew Dietderich: (313) 446-0315, adietderich@ at $1 million, Mullin said. [email protected] said. “They’ve cut the amount of employees too far.” crain.com DETROIT BUSINESS MAIN 07-02-07 A 23 CDB 6/29/2007 6:54 PM Page 1

July 2, 2007 CRAIN’S DETROIT BUSINESS Page 23 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 23-29

the inventor of the intermit- the end of 2008 as the Fort L.P., a private-equity fund tent auto windshield wiper, UAW OKs Shelby DoubleTree Suites, to that was part of a group Fifth Third spent much of his life in be operated by Hilton. that bought Howell-based court charging Detroit au- Plans for the $82 million Uni Boring Inc. out of bank- tomakers with stealing his Delphi contract project call for 204 luxury ruptcy in 2005 and renamed invention. hotel suites and 38,000 it Diversified Machine Inc. moves in as The picture, “Flash of Ge- square feet of conference/ Beaumont Medical Cen- nius,” due from Universal with pay cuts, meeting space, plus a bar ter of West Bloomfield Town- Pictures and Spyglass Enter- and restaurant, topped by ship on Monday opened a tainment, chronicles buyouts 63 luxury apartments. The new Center for Children’s LaSalle lays off Kearns’ battles with Ford developer is Detroit-based Rehabilitation. Motor Co. and Chrysler Corp. MCP Investments L.L.C. Legislation to create a he United Auto Work- t was a good day/bad The group launched a Greg Kinnear will play Corridor Improvement Au- ers said Friday that a day Tuesday for a man- campaign in February to Kearns, and Lauren Graham thority to aid the construc- ager at Troy-based raise $150,000 to renovate T proposed labor con- ON THE MOVE I The Shoppes at Gate- will play his wife. tion of tract with Delphi Corp. was LaSalle Bank Midwest N.A. the theater’s performance Ford and GM eventually William Koehler to presi- way Park, a development approved by its member- The manager, who asked venue. paid Kearns about $30 mil- dent of the Michigan dis- planned for Eight Mile that her name not be dis- To date, the nonprofit ship with 68 percent voting lion in settlements for trict for KeyCorp., the hold- Road and Woodward Av- closed, awoke to find two theater has raised $52,000 for it and 32 percent against. building cars that included ing company for KeyBank, enue in Detroit, passed the phone messages. The first with the Founders Club and The labor agreement the wipers without a licens- Ann Arbor, from head of state House Wednesday and was from her boss, who another $25,000 to $80,000 calls for pay cuts in ex- ing agreement from him, the national commercial awaits approval from Gov. wanted to let her know she from fundraising events, change for employee buy- but the battles cost him his bank and financial spon- Jennifer Granholm, The De- had been included in a said Executive Director out incentives. job and his marriage. sors group, Cleveland. He troit News reported. round of layoffs the bank Christina Johnson. Troy-based Delphi, the Kearns died in 2005 at the replaces Edward Reilly, who Robert Bosch L.L.C. was about to announce. world’s second-largest auto- age of 77 from brain cancer was named president of opened its 225,000-square- The second was from hu- motive supplier, filed for Hands Along Woodward complicated by Alzheimer’s KeyBank’s southwest Ohio foot technical center in Ply- man resources at South- Chapter 11 bankruptcy in district. mouth Township. disease. October 2005. field-based Fifth Third Bank, planned for Aug. 19 William Liebold II, presi- Walbridge Aldinger was Reaching a new labor Eastern Michigan, who want- dent of the Southfield-based scheduled to move into its Plans for Hands Along agreement is a key hurdle ed to discuss a possible job BITS AND PIECES Michigan Colleges new Detroit office at 777 Woodward, an event that is in the company’s effort to there. “I need you to call me Foundation, will step down Woodward Ave. today, oc- part of the year-long cele- The Detroit-based put together a plan of reor- in light of the changes that at the end of this year after cupying 50,000 square feet Sphinx Organization has ganization and makes it have happened.” bration of the 200th birth- 16 years at the helm. on two floors. Fifth Third President and day of Woodward Avenue, forged a artist-sharing easier for a buyout proposal arrangement with classical- Kroger Co. closed six CEO Greg Kosch said his are shaping up. from a group of private-eq- music label Naxos. Naxos Farmer Jack stores Wednes- bank got a “heads up” about The signature event for uity firms to move forward. TRANSACTIONS will record a CD for the day, in Northville Town- the impending layoffs, and the celebration will be Aug. Shareholders of Farm- first-place senior division ship, Brownstown Town- “put together an A-list of ington Hills-based Covansys 19. laureate in the national UM Health System gets ship, Troy, Grosse Pointe players we wanted and Corp. (Nasdaq: CVNS) ap- Woodward Avenue Action Sphinx Competition for Woods, Dearborn and Hart- started making calls. The $50 million from donor proved Wednesday its sale land, with plans to reopen Association Executive Direc- young black and Latino funny thing is, I got a call to a subsidiary of Califor- them as Kroger stores July tor Heather Carmona said the string players. The University of Michigan from LaSalle telling me to nia-based Computer Sciences 6, the Detroit Free Press re- plan for the event is for For the second straight Health System received from back off, we weren’t playing Corp. (NYSE: CSC) for $34 a ported. Also, the Free Press 45,000 people to volunteer to year, Honigman Miller an anonymous donor $50 fair.” share in cash. Covansys reported that the Farmer form a human chain from Schwartz and Cohn L.L.P. was million, the largest gift in will continue to operate un- Jack store in Commerce the Detroit River to Ponti- rated best corporate law the health system’s history and the second-largest in der that name with current Township on Union Lake Theater opens in Northville ac. Churches along Wood- firm in Detroit in a legal in- the school’s history. management. The deal is Road was purchased by The Tipping Point Theatre, ward will ring their bells, dustry study for Corporate The health system said in expected to close this week. Southfield-based Hiller’s a new professional theater Board Member magazine. and people are expected to a release that the money General Motors Corp. Markets Inc., and that Ann The bimonthly maga- in downtown hold hands for a few min- will go toward programs said Thursday it has agreed Arbor-based Busch’s Inc. zine’s July/August 2007 is- Northville, is up and utes. The chain would sym- and initiatives at the Univer- to sell its Allison Transmis- will buy two stores in South sue listed Dykema and Miller running. bolize a city and region of sity of Michigan Cardiovascu- sion commercial and mili- Lyon and Novi, while trade Canfield Paddock & Stone The theater strength, diversity and lar Center. tary business to private-eq- publication Supermarket P.I.C. in a tie for second released its pride. See www.woodward The gift is dependent on uity firms Carlyle Group and News reported that VG’s place, with Dickinson Wright inaugural, avenue.org. benchmarks for success re- Onex Corp. for about $5.6 bil- Food & Pharmacy in Fenton 2007-08 P.L.L.C. listed fourth. For lated to customer satisfac- lion, Automotive News re- will buy two Farmer Jack sched- the first time, Bodman L.L.P. tion, collaboration among ported. stores in Fenton and one in ule, Inventor’s fight against showed up on the list, tied scientists and physicians, The city of Novi has Shelby Township. made automakers to be a movie with Butzel Long for fifth. clinical outcomes, research purchased about an acre at The California State up of The state Legislature contributions, and excel- the site of the former Novi Teachers’ Retirement System, four The late Wayne State Uni- voted Thursday to allow the lence in education. Expo Center from the Adell which controls nearly 2 per- regular- versity mechanical engineer- city of Detroit’s $300 trash Brothers Children’s Trust for cent of Lear Corp. stock, said season shows ing professor Robert Kearns pickup fee to be put on LaSalle Bank lays off 100 about $308,000, the Detroit Friday it will vote against which begin in will be the subject of a major property tax bills. But, ac- Free Press reported, intend- Carl Icahn’s pending $36-a- late August and an improv motion picture set to begin cording to the legislation, Rob Darmanin, vice presi- ing to build a road on it. share bid for the company. comedy night in the style of filming in Toronto in July. nonpayment of the fee alone dent and director of corpo- EaglePicher Corp. said UnitedAuto Group Inc. the television show, “Whose Kearns, who received nu- can not be used to foreclose rate relations for Troy- Wednesday that it has has changed its name to Line is it, Anyway?” merous patents in 1967 as on property. LaSalle Bank Midwest N.A., agreed to sell EaglePicher Penske Automotive Group Inc. the Troy-based subsidiary Boron L.L.C., its Quapaw, Its ticker symbol on the of Chicago-based LaSalle Okla.-based boron produc- New York Stock Exchange Bank Corp., said about 100 of tion business, to Costa changes to PAG. 4,400 Michigan employees Mesa, Calif.-based Ceradyne Ron Kagan, director of Taking flight are being terminated as Inc. for $69 million in cash. the Detroit Zoo, admitted ly- part of companywide cuts The Detroit City Council ing on his résumé about The world of the Web is certainly can plug into any Web site with a line related to a restructuring Wednesday approved the having completed a doctor- quick. One minute, you can be of code. announced last December. sale of the city’s 320-acre al degree and may face dis- blissfully unaware that something So, shortly thereafter, Darmanin said nearly 300 Camp Brighton in Livingston ciplinary action, including exists, and the next, you can have it had more than www.crainsdetroit.com positions have been elimi- County to the Chaldean firing, The Detroit Free on your Web site. just a link to the Flightstats Web site nated since December. Catholic Church U.S.A. in Press reported. Northwest Airlines’ flight cancellations — we had the tool to look up specific DTE Energy Co. on Fri- got lots of attention last week, including flight information. Magical! Southfield for $3.5 million. day closed on the sale of its from Crain’s Web site. Most of the That’s the kind of thing that makes Pick-Fort Shelby Hotel to northern Michigan natural reports referenced numbers from a working on the Web endlessly OTHER NEWS Web site called www.flightstats.com, interesting and cool, and makes the reopen as a DoubleTree gas exploration and produc- which I’d never heard of. technological frustrations worth the The Michigan Economic tion properties to a Penn- Then, one of our reporters came to trouble. Hilton Hotels Corp. execu- Development Corp. an- sylvania energy company, me with news that we could use their tives and local developers nounced an investment by Atlas Energy Resources L.L.C., WEB WORLD You can check out the “flight status” information on our Web site. OK, how gadget for yourself on our site at said Tuesday that the Pick- the state’s 21st Century In- for more than $1.2 billion. do I do that? Michael Lee www.crainsdetroit.com/flights. Fort Shelby Hotel on vestment Fund of up to $10 ProQuest Co. will be- After some investigation on the Flightstats Just doing our part to harness the power of Lafayette Boulevard at million in the New York come Voyager Learning Co. site, I saw that they offer a free “gadget” that the Web — and ease your business lives. First Street is to reopen by City-based Relativity Fund on June 30. DBpageAD.qxd 6/28/2007 10:49 AM Page 1