Real Estate Economy, Acquisition, Bonus Pay Cited As Reasons for Attrition

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www.crainsdetroit.com Vol. 26, No. 27 JULY 5 – 11, 2010 $2 a copy; $59 a year

Page 3 After attrition, Auto suppliers lead Butzel Long regroups

Royal Oak COURTESY OF ANN ARBOR STREET ART FAIR takes critical Artist booths line a walkway at the annual Ann Arbor Street Art Fair. look at This year’s fair, held with three the way to strong 1Q liquor others in Ann Arbor, is July 21-24. licenses 61 companies report total $5.8B turnaround

Ann Arbor BY TOM HENDERSON sors-Investment Banking LLC, said it Auto suppliers led the way: All Inside CRAIN’S DETROIT BUSINESS was confirmation that auto suppli- nine had better first quarters this ers have done a better, faster job of year than one year ago, and all had Sam Valenti III of Bloomfield rightsizing their operations than profits. Bill would lessen tax fair adapts Hills-based Valenti Capital Manage- anyone could have predicted. In the first quarter of 2009, only on tobacco distributors. ment said the first Their reason for optimism is the Visteon Corp. finished in the black, quarter was “spec- QUARTERS combined result of first-quarter and then just barely, with net in- Capitol Briefings, Page 15 tacular.” earnings reported by Southeast come of $2 million. Last year, Lear to remain David Sowerby, COMPARED Michigan public companies. Corp. lost $264.8 million, Johnson Con- chief market ana- Of the 61 companies reporting as trols Inc. lost $212 million, TRW Auto- lyst in the Bloom- Chart: See of Crain’s deadline Friday, 42 had motive Holdings Corp. lost $129 mil- Crain’s Lists what a field Hills office of difference a better earnings than in the first lion, Federal-Mogul Corp. lost Loomis Sayles & Co. year makes, quarter last year. $101 million, ArvinMeritor Inc. lost Largest residential brokers, among elite LP, said it rated a Page 15 They combined for net income $49 million, and the sector com- B-plus. of $3.2 billion, compared with a bined for losses of $794.4 million. largest nonresidential Cliff Roesler, managing director combined loss of $2.6 billion a year property managers, Page 11 Collaboration of Birmingham-based Angle Advi- ago — a turnaround of $5.8 billion. See Suppliers, Page 15 among changes

This Just In BY CONSTANCE CRUMP SPECIAL TO CRAIN’S DETROIT Snyder leads gubernatorial BUSINESS rivals in TV ad spending The Ann Arbor Street Art Fair is Ilitches would buy working to expand its palette of Michigan’s gubernatorial artists and art buyers and build contest has spurred nearly more year- $3.4 million so far in televi- round rele- sion advertising, the nonpar- vance in the tisan Michigan Campaign Fi- art communi- more than a team nance Network reported ty. Friday. Executive Still, with the Aug. 3 pri- Arena, and Fox, Masonic and City Director Mau- mary a month away, TV Pistons deal could DELVING INTO DETAILS theaters. reen Riley is spending lags well behind Owning the Pistons and the en- preparing the Pistons sale: It’s a family the pace of Michigan’s past tertainment venues would bring backdrop for matter, Page 18 two gubernatorial cam- create a monopoly new dollars into the Ilitch coffers this month’s In the same league: A list of paigns, the network said. Riley — possibly up to $70 million in an- 2010 show. multiple-team owners, Page 18 Rick Snyder, chairman and nual concert and event gross rev- Her mission — besides wran- CEO of Ann Arbor venture- on entertainment enue — and likely grow what the gling 100 volunteers, 150 artists, have long been entertainment dol- capital firm Ardesta LLC, re- family already had, industry insid- half a dozen staff members and BY BILL SHEA lar rivals to the Ilitch-owned or mains in the spending lead at ers say. a $350,000 budget — is keeping CRAIN’S DETROIT BUSINESS managed Cobo Arena, Joe Louis nearly $1.5 million, but his “I imagine it’s all attractive. It her event among pace has slowed. Michigan The attractiveness of owning makes them the one-stop shop for the top art fairs Attorney General Mike Cox FAIRE the Detroit Pistons to Mike and Mar- entertainment options in the De- in the country at ranks second with close to ian Ilitch may be equaled by a detroit area,” said Gary Bongiovan- a time when art $1.2 million in ad buys. FEATURES sire to create one of the largest re- ni, editor-in-chief of concert indus- fairs are chang- try trade magazine Pollstar. Oakland County Sheriff Coming gional entertainment monopolies ing with e-com- Mike Bouchard has spent soon: Do-it- in the country. The Palace has been voted Are- merce and eco- $97,298, while U.S. Rep. Peter yourselfers The Pistons are expected to be na of the Year eight times by Per- nomic trends. Hoekstra, R-Holland, has in Dearborn, sold as a package with Auburn formance magazine and twice by The fair has spent $5,470. Page 16 Hills-based Palace Sports & Enter- Pollstar and is among North fostered a com- On the Democratic side, tainment Inc. — which would give America’s top-grossing arenas, petitive process to select artists, House Speaker Andy Dillon, D- the Ilitches the Palace of Auburn Pollstar said. is working more closely with Redford Township, has spent Hills, DTE Energy Music Theatre and DTE Energy Music Theatre has the other Ann Arbor fairs held the contract to manage Meadow been listed as the nation’s most at- the same week and is refining See This Just In, Page 2 Brook Music Festival for Oakland Uni- tended amphitheater by Amuse- See Art fair, Page 16 versity. ment Business/Billboard each of That is, if the Ilitch- the 19 years of PS&E ownership. es are interested. De- spite mounting evi- Ilitch interest dence, they’re coy about it, and Palace Renewed speculation arose two Sports is mostly silent. weeks ago that the Ilitches are in- The PS&E venues terested in buying the Pistons. collectively host 300 They now own the Detroit Tigers and Detroit Red Wings.

NEWSPAPER events for 3.5 million people annually and See Entertainment, Page 18 JEFF JOHNSTON/CDB 20100705-NEWS--0002-NAT-CCI-CD_-- 7/2/2010 6:09 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS July 5, 2010

Lisa Dancsok, senior vice presi- Colonial will continue to oper- about $225,000. THIS JUST IN The way it was: 1989 dent of marketing and communi- ate under that name. Last year, If Billy Casper does not meet cations, is leaving at the end of Ross closed on $600 million in its target of $265,000, Anderson ■ From Page 1 Throughout our 25th-anniversary July to start her own business. loans. said, Troy is entitled to a nonper- year, Crain’s will use this space Also departing this month are — Tom Henderson formance fee that will make up to look at interesting items from COO Deb Dansby and Doug Parks, the difference. $335,380. past issues. The network, which collected senior vice president of business Private firm to run Troy courses The combined courses’ costs in advertising data from the public development and attraction. last year’s city budget were files of state broadcasters and ca- Everyone Greg Main, president and CEO The city of Troy-owned Sylvan $2.8 million, which included debt ble systems, noted no ad purchas- “ of the MEDC, declined on Friday Glen and Sanctuary Lake golf cours- and bond payment. es so far for Democratic con- just got up and to comment on the departures. es will be managed by a private The two golf courses are Vien- tender and Lansing Mayor Virg Dancsok also declined to com- company, Billy Casper Golf, in a rev- na, Va.-based Billy Casper’s first Bernero and state Sen. Tom George, went to the ment. Dansby was unable to enue-generating plan for the city. in Michigan. R-Kalamazoo. comment by Crain’s deadline, Course owner and operator Bil- In April, Pontiac selected Torre A group called Americans for phones. There was not a pay and a message was left Friday af- ly Casper is guaranteeing the city Golf Management, an affiliate of Job Security has spent $272,680 to telephone to be found in the ternoon in Parks’ voice mail. combined net operating income Pontiac-based landscaping firm purchase ads opposing Hoekstra. Bridget Beckman, MEDC public of no less than $265,000 per year Torre & Bruglio Inc., to manage — Amy Lane information officer, is reportedly for the two courses, said Carol day-to-day operations, conces- Amway Grand Plaza Hotel. becoming vice president of mar- Anderson, director of the city’s sions and grounds maintenance ” keting and communications. She parks and recreation depart- at the Pontiac Municipal Golf Level One raises $13.1M to buy Ed Wendover, The Community Crier, was on vacation Friday and could ment. In previous years, the com- Course. troubled banks’ assets or stock Plymouth not be reached for comment by bined net operating income was — Shawn Wright voice or e-mail. From a Jan. 30, 1989, Rumblings Farmington Hills-based Level — Amy Lane item about editors calling their CORRECTIONS One Bancorp Inc. has closed on a pri- newspapers from a Michigan Ⅲ The photos of Linda LoCicero vate fundraising of $13.1 million, Press Association convention in which it will use to try to acquire Grand Rapids after word got out Ross Mortgage acquires and Judy Perry were incorrectly the assets or stock of struggling that the U.S. Court of Appeals Colonial Mortgage identified in the CareerTransi- community banks, including approved the Joint Operating tion on Page 22 in the June 28 edi- banks that may be shut down by Agreement between the Detroit Royal Oak-based Ross Mortgage tion. The correct photos and state and federal regulators. Free Press and The Detroit News. Corp. is expected to announce this names are at left. The Grosse Pointe firm of Don- The 100-year JOA, which merged week the acquisition of Livonia- Ⅲ A story on Page 3 of the June the papers’ business operations nelly Penman & Partners served as based Colonial Mortgage Corp., 28 edition incorrectly said under what is now Detroit Media Seamobile was the manufacturer investment bankers for the Partnership LP, remains in effect. which specializes in reverse fundraising. mortgages. of the two-man submersible that Last April, Level One assumed Terms of the acquisition will LoCicero Perry Detroit-based Marine Pollution the bulk of the assets of Farming- not be announced. The deal adds Control is using in tandem with ton Hills-based Michigan Heritage Three senior execs leave MEDC 13 employees. Colonial, which its equipment for underwater oil recovery. The sub’s manufacturer is Bancorp Inc. after it was shut The Michigan Economic Develop- had $30 million in loan genera- actually Claremont, Calif.-based Seamagine Hydrospace Corp. down by regulators. ment Corp. is losing three top offi- tion last year, also has an office in Ⅲ A story and headline on Page 1 of the June 28 edition incorrectly — Tom Henderson cials. Orlando, Fla. stated that a medical park owned by Flint-based McLaren Health Care Corp. is in Clarkston. It is in Independence Township. Tax Experience In Your Corner.

Who should advertise: Retailers, restaurateurs, hospitality, meeting/convention spaces/planners, loft/apartment/home spaces, nonproﬁt/ community organizations, business development organizations, educational/ training or job-placement providers, service providers such as lawyers, accountants, consultants, advertising agencies, architects, designers, and Living and Investing in the D is companies providing products or services used by the area’s business and in environment, alternative/clean energy, urban agriculture and construction. community leaders throughout the year to share progress and BONUS DISTRIBUTION: possibilities for the Southeast 1,500 via Crain’s Detroit House Party and partners Michigan region. This issue also includes an interactive Web program with multimedia Eric Nemeth [email protected] advertising options. AD CLOSE: July 29 PRESENTING HOUSE PARTY SPONSOR ISSUE DATE: Aug. 23 SPONSORSHIPS are also available.

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July 5, 2010 CRAIN’S DETROIT BUSINESS Page 3 Butzel regroups after exodus Focus: Real Estate Economy, acquisition, bonus pay cited as reasons for attrition

BY CHAD HALCOM Butzel acquired a 50 percent stake and support staff at the end of May, CRAIN’S DETROIT BUSINESS in April 2009. then shed eight more attorneys The firm attributes the attrition and 13 staff members in mid-June We are a long- A new leadership team will look to a national economic downturn when Miami-based Akerman “ for stability and resurgence at De- and the impact Senterfitt LLP acquired its established troit-based Butzel Long PC, which of tighter cred- two Florida offices in Palm has shed attorneys at a much high- WHO’S WHERE? it markets on Beach and Boca Raton. and well- er rate than other large local law Far and wide: several prac- The latest moves cap a se- firms since early last year. Butzel alumni tices in big law ries of shareholder and asso- known active The 156-year-old Detroit firm land at variety of firms since late ciate departures in small had 190 attorneys as of June 30, ac- firms, Page 17 2008. But for- groups, going back to April firm in this Building sales stir amid cording to its website — off 22 per- mer Butzel 2009. cent since reporting 243 attorneys lawyers who asked not to be identi- By comparison, three of market, and post-downturn pricing, in eight offices on Jan. 1, 2009, in fied told Crain’s the departures Detroit’s largest law firms — past data furnished for Crain’s list also followed some dissension over Dykema Gossett PLLC, Honigman that isn’t Page 8 of largest law firms. The attorneys the acquisition of a New York of- Miller Schwartz and Cohn LLP, and going to change. are spread over six offices, includ- fice and diminishing annual bonus Miller, Canfield, Paddock and Stone ” ing the 20 partners and associates pay to its shareholders. PLC — all saw headcount reduc- Company index of Washington, D.C.-based Butzel Butzel completed a “limited Justin Klimko, Long Tighe Patton PLLC, in which strategic reduction” of attorneys See Butzel, Page 17 Butzel Long PC These organizations appear in this week’s Crain’s Detroit Business: Adkison, Need & Allen ...... 17 Affinia Group Holdings ...... 14 Ann Arbor Street Art Fair ...... 1 ArvinMeritor ...... 1 Bernard Financial ...... 10 Humana offers worker-paid specialty benefits Blue Cross Blue Shield of Michigan ...... 8 Butzel Long ...... 3 CB Richard Ellis ...... 8 Cigna Healthcare and Aetna, said Champion Enterprises ...... 15 Insurer shifting from commercial health plans Mike Nixon, president of AGIS, a Citizens Republic Bancorp ...... 15 Birmingham group health plan Clark Hill ...... 17 BY JAY GREENE To implement the strategy in to offer lifelong well-being.” consultant and agency. CMS Energy ...... 15 CRAIN’S DETROIT BUSINESS Michigan, which also includes The products, each of which can “There will be some competi- Dearborn Bancorp ...... 15 shifting resources away from com- be purchased by employees for $5 to tion. A lot of folks in the health in- Detroit Pistons ...... 1 Humana Inc. is embarking on a mercial health insurance, Christy $15 per pay period, include short- surance industry are trying to Dickinson Wright ...... 17 new strategy in Michigan to offer a said Humana and long-term disability insurance, imagine life after health care re- Doeren Mayhew ...... 8 DTE Energy ...... 15 variety of voluntary workplace this year will term and whole life, and off-the-job form, and if they are not going to Dykema Gossett ...... 3 specialty benefit programs to em- hire four people. accident policies that supplement be providing group health insur- Energy Conversion Devices ...... 15 ployers — but paid for by employ- Humana cur- other policies, Christy said. ance, what are they going to be Eye of the Tiger ...... 3 ees — that include disability, life, rently employs Louisville-based Humana (NYSE: providing?” Nixon said. Federal-Mogul ...... 1 critical illness, cancer, accident 87 here and 241 HUM), one of the nation’s largest Bill Berenson, head of Aetna’s Fifth Avenue Billiards ...... 3 and supplemental health, said in Indiana. publicly traded health and supple- Michigan operations, said Hu- First Mercury Financial ...... 8 Denise Christy, Humana’s region- “Each year, mental benefit companies, has be- mana’s entry into the specialty Flagstar Bancorp ...... 15 al president. 350,000 people go gun a nationwide rollout of its benefit market will be challenging. Ford Motor ...... 15 Christy, who is based in Troy, bankrupt be- workplace specialty benefit plans in “There are already many com- Grubb & Ellis ...... 9 Honigman Miller Schwartz & Cohn ...... 3 also has been placed in charge of cause of illness- its five commercial regions, includ- petitors that specialize in these Christy Humana ...... 3 the company’s Indiana operations, es,” Christy ing Michigan and Indiana. products in Michigan,” Berenson Huron Capital Partners ...... 14 where the objective is to increase said. “Some 71 percent of Ameri- Several other health insurers in said. “Given the high unemploy- ITC Holding ...... 15 enrollment in Medicare Advan- cans don’t have a savings account. Michigan offer some specialty Johnson Controls ...... 1 tage plans. These specialty products are a way workplace products, including See Humana, Page 16 Jones Lang LaSalle ...... 8 Lear ...... 1 Little Caesar Enterprises ...... 18 L. Mason Capitani ...... 9 Masco ...... 15 Miller Canfield Paddock & Stone ...... 3 Royal Oak takes longer look at liquor licenses, cites policing Newmark Knight Frank ...... 8 Olympia Entertainment ...... 18 Palace Sports & Entertainment ...... 1 BY NATHAN SKID Coats said he has owned and op- Royal Oak City Manager Don Quicken Loans ...... 5 CRAIN’S DETROIT BUSINESS erated the Tonic nightclub in Johnson said the city is taking a Ramco-Gershenson Properties Trust ...... 10 I was shocked downtown Pontiac for nine years tougher stance because it doesn’t Signature Associates ...... 8 When Martin Coats and Daniel “ without incident. have enough police resources. Sperry Van Ness/Property Investment Advisors . . . . 9 Yezbick, co-owners of Royal when we were But neither Coats’ track record “Right now, anything that is Stout Risius Ross ...... 9 Oak-based Eye of the Tiger LLC, nor the fact that the license had likely to have a policing impact is The Henry Ford ...... 16 were making plans to reopen refused. If I been attached to the property for going to be a concern,” Johnson TRW Automotive Holdings ...... 1 a revamped Fifth Avenue Bil- two decades made a difference. said. Valassis Communications ...... 15 liards in downtown Royal had problems The liquor control committee ad- According to Lt. Gordon Young of Velesco Pharmaceutical Services ...... 4 Oak, they considered ap- vised the city commission to the Royal Oak Police Department, Visteon ...... 1 Western Creative ...... 12 proval of the property’s 20- in my past, refuse the transfer, and attorneys there are several other bar propos- year liquor license to be a then I could have held off on issuing a formal als waiting for liquor license ap- given. request. provals, including Bar Louie at 390 N. Department index The pair wants to spend City officials say they have been Main St., and a transfer from the about $500,000 to reopen the understand casting a more critical eye on former Small Plates to the space at BANKRUPTCIES ...... 4 12,000-square-foot, 530-seat busi- their position. liquor license proposals because of 526 S. Main St. BUSINESS DIARY ...... 14 ness under the same name. The ” concerns about how more bar traf- Jim Rasor, Royal Oak city com- CAPITOL BRIEFINGS...... 15 only changes would be the addi- fic translates into heightened costs missioner, said the city is looking Martin Coats, CAREERWORKS ...... 13 tion of two dance floors — one on for police patrols. for new ways to generate revenue Eye of the Tiger LLC the ground floor and another on “I was shocked when we were from the city’s bars; he is in favor CLASSIFIED ADS ...... 14 the second — and the addition of In March, they decided to take refused,” Coats said. “If I had prob- of implementing a tax of 10 cents KEITH CRAIN...... 6 about 90 seats for guests to dine. their plan before Royal Oak’s lems in my past, then I could un- per drink that he said would help LETTERS...... 6 The partners bought the site out of liquor control committee and were derstand their position. But I have MARY KRAMER ...... 7 See Liquor licenses, Page 17 receivership. optimistic about their chances. a perfect record.” OPINION ...... 6 PEOPLE ...... 13 Nominate an entrepreneur Ann Arbor news and more RUMBLINGS ...... 19 Crain's covers Washtenaw and Livingston THIS WEEK @ Know a successful entrepreneur? Nominate SMALL BIZ SOLUTIONS...... 12 them for the Salute to Entrepreneurs recognition counties. Sign up for the Wednesday WWW.CRAINSDETROIT.COM program. Go to crainsdetroit.com/nominate e-newsletter at crainsdetroit.com/getemail STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 19 20100705-NEWS--0004-NAT-CCI-CD_-- 7/2/2010 6:10 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS July 5, 2010

StageTwo Strategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly feature that analyzes a To sign up for the twice-monthly recent business decision by a second-stage company. e-newsletter, go to crainsdetroit.com/getemail. The For more second-stage coverage, go to Second Stage print section will appear in Crain’s on the crainsdetroit.com/secondstage. third Monday of each month. VELESCO PHARMACEUTICAL SERVICES LLC Location: Plymouth, with a facil- “We always believed this to be with potential clients. ity in Kalamazoo part of the plan, but we hadn’t Through discounted pricing, Description: Drug research com- marketed the service yet and had- Velesco secured clients before the pany n’t planned on developing the ser- facility opened in February. CEO: Dave Barnes vice for some time.” Barnes estimates the company Founded: 2008 Risks and considerations: Getting will break even on the investment Employees: 12 the facility operational was going by October. Revenue: $780,000 in 2009, with to cost Velesco more than “We put in damn hard work to $1 million projected for 2010 $100,000, Barnes said. And, it was make it happen, but the risk Problem to be solved: The drug- 100 miles away seems to have paid off,” he said. development company operated in Kalamazoo. “We think the new revenue will on a deliberate business plan, “It meant a be able to backfill the hole we dug growing in increments during its lot of time trav- in our reserves quickly.” first year with plans to expand of- eling and ad- Expert opinion: Kayo Ramirez, ferings into clinical materials — justing,” he technology business consultant capsules, ointments and gels — by said. for the Michigan Small Business & its fourth year of operation, 2012. Because the Technology Development Center, To do so, Velesco would need the facility was said companies too often get stuck capital to acquire a new facility three years trying to follow a business plan. retrofitted with specific clinical Barnes ahead of sched- “A business plan is a living doc- clean rooms to develop the mate- ule, “we didn’t ument that will, or should, change rials, said Dave Barnes, CEO. have much of a chance to align as you learn more about your “Expanding our services was customers like we wanted,” he business,” he said. “A good man- always in the plan for us,” he said. said. “The counterpoint being the ager will understand that the plan “But we viewed it as a later-in-life perfect facility was available must adjust to the changing of the acquisition.” right now at the right price.” marketplace.” However, the down real estate Solution: Barnes and his man- Ramirez said expanding into market made a suitable facility agement team weighed the cost different service areas should be available at a reasonable price and return of the expansion. determined by the need of the last year — a year into the compa- “After careful consideration, marketplace. ny’s existence. we bit the bullet and did it,” he “You have to talk to your The dilemma became whether said. clients before making the leap,” to seize the opportunity and in- Velesco began renovations and he said. “Make sure your market vest the capital or follow the busi- hired four employees. is going to support the risk. Just ness plan and wait until the com- In the meantime, Barnes and because a new facility is at a great pany is more financially stable, his staff developed a marketing price doesn’t mean you should Barnes said. plan and frequented as many make the investment.” “The price was lovely,” he said. trade shows as possible to connect — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entrepreneurship editor at Crain’s Detroit Business, at [email protected]. Detroit nets 2nd health care event for fall

BY TOM HENDERSON companies looking for funding. expected to attract more than 1,200 CRAIN’S DETROIT BUSINESS The forum also will have an researchers, scientists, govern- expo featuring displays by biotech, ment officials and representatives The Michigan Venture Capital As- pharmaceutical and medical de- from life science companies from sociation, thanks to sponsorship vice companies. more than 30 countries. commitments from the Michigan The health care venture forum “We feel Michigan, especially in Economic Development Corp. and the was founded in 2003 and is put on by life sciences and health care, has a law firm Honigman Miller Schwartz the Mid-America Healthcare Investors lot to show off,” said LeAnn Auer, and Cohn LLP, has raised the money Network, an association of about 50 executive director of the health needed to host this year’s MidAmer- VC firms in 14 states with more care venture forum. “This forum ica Healthcare Venture Forum, which than $2 billion under management, has been to Ohio a couple of times, will be Nov. 10-11 at the Westin and IBF-International Forum Inc. of to Madison, to Illinois. It’s great Book Cadillac in Detroit. New York, a company that puts on we’re able to bring it to Michigan.” The forum draws about 300 at- VC, private equity and technology She credited the MEDC and tendees, including representatives conferences around the U.S. MichBio, the Ann Arbor-based from venture capital and private Last year’s forum was in Madi- biotech trade association, for start- equity firms from around the U.S., son, Wis. ing the process that led to Michi- service providers, health care ex- It will be the second major gan getting the forum. ecutives and entrepreneurs. health care event of the fall in She said the MVCA needed to The agenda, not yet set, will in- downtown Detroit. raise $80,000 in sponsorship mon- clude a variety of panels, but the The sixth annual World Stem Cell ey to land the forum. meat of the event will be pitches by Summit will be Oct. 4-6 at the Detroit Tom Henderson: (313) 446-0337, about 50 emerging health care Marriott Renaissance Center, and is [email protected]

BANKRUPTCIES The following businesses filed for voluntary Chapter 11. Assets and lia- Road, Dearborn, voluntary Chapter Chapter 7 or 11 protection in U.S. bilities not available. 11. Assets and liabilities not avail- Bankruptcy Court in Detroit June 25- able. Taorello’s Marketplace Inc., 3100 July 1. Under Chapter 11, a company ., 22026 Spring- Northwestern Highway, Suite 110, All About Leads Inc files for reorganization. Chapter 7 in- brook Ave., Farmington Hills, volun- volves total liquidation. Farmington, voluntary Chapter 7. As- tary Chapter 7. Assets and liabilities sets: $5,003; liabilities: $323,755. Four Star Investment Group Ltd., not available. 35130 23 Mile Road, New Baltimore, 8636 Joseph Campau LLC, 23309 Ford — Shawn Wright 20100705-NEWS--0005-NAT-CCI-CD_-- 7/2/2010 6:11 PM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 5 Labor Department’s about-face on OT muddies Quicken lawsuits BY CHAD HALCOM quires voiding or setting aside ju- frey Morganroth, of Morganroth & CRAIN’S DETROIT BUSINESS ries’ verdicts.” Morganroth PLLC, Birmingham, ar- The parties are headed to media- gued the new opinion does not pre- A recent about-face in legal tion July 29 before member Morley clude Quicken’s ability to rely on analysis by the U.S. Department of Witus at Detroit-based Barris, Sott, Labor’s original 2006 finding — Labor could prove so disruptive to Denn & Driker PLLC. In the mean- meaning Quicken still may not be a set of lawsuits facing Livonia- time, Murphy is weighing whether subject to overtime claims for the based Quicken Loans Inc. that the to revisit three prior decisions in period between the opinions. No two businesses are judge has considered ignoring the Quicken’s favor, all of which came About 1,400 former Quicken em- agency’s views completely. before the labor department re- ployees are rolled into one or more District Judge Stephen Murphy versed its position. of four lawsuits against Quicken the same. voiced that possibility at a hearing Paul Lukas, partner at Min- and its founder Dan Gilbert, Rock Fi- in late June, after the depart- neapolis-based nancial Corp. and ment’s latest determination that Nichols Kaster Quicken Vice Custom-crafted legal mortgage loan officers are not ex- PLLP and lead About 1,400 former President David empt from hourly overtime pay. counsel for the Carroll challeng- strategies that fit your Quicken faces four lawsuits on plaintiff loan offi- Quicken employees ing its policy of behalf of more than 1,000 former cers, estimates not paying over- mortgage loan officers alleging the Quicken’s poten- are rolled into one or time to mortgage business. company misclassified them as ex- tial damages and loan officers. empt employees to avoid overtime attorney fees more of four The first law- pay under the federal Fair Labor could exceed $10 suit, filed in 2004, Standards Act. million if the lawsuits against covers 446 em- Deputy Administrator Nancy case goes to trial ployees at Quick- Leppink of Labor’s wage and hour and the case fo- Quicken and others. en call centers in division found in a March adminis- cuses only on Troy, Cleveland and Phoenix. A second lawsuit, trator’s interpretation that mort- overtime claims between 2002 and How can we assist? gage loan officers primarily serve a 2006. filed in 2007, covers employees who Learn more at sales function and do not qualify as But a reversal on the three deci- tried to opt in later as plaintiffs in P: 248.539.9900 exempt administrative employees. sions could broaden Quicken’s ex- the original suit. A third case cov- fosterswift.com E: [email protected] That is a reversal of what Labor posure to overtime claims from ers a class of Rock mortgage found in a 2006 letter on the same 2001 to present, and elevate poten- bankers at separate branch loca- topic, and it complicates Quick- tial damages to more than $30 mil- tions, and a fourth lawsuit was filed en’s defense against claims for as lion, he said. in May to cover possible new claims much as nine years of hourly Lukas said the difference is so stemming from the March opinion Lansing | Farmington Hills | Grand Rapids | Detroit | Marquette | Holland overtime pay. great that, even if the loan officers from the labor department. Murphy noted that the depart- go to trial and win on the limited Employees in the lawsuits allege ment’s position change follows a 2002-2006 claims, the firm would they were instructed to work more change in presidential administra- have to file an appeal on the issues than 55 hours a week without over- tions and raised the prospect of that weren’t considered. time, sometimes putting in 70-80 setting aside both opinion letters Paula Silver, Quicken vice presi- hour weeks while supervisors and making future court rulings dent of communications, said in a monitored them from an elevated based simply on labor statutes and prepared statement that “Quicken platform in the same room or by case law. Loans has won several key victories listening in on sales calls to ensure 800-292-3831 “I think I put myself at tremen- since this weak claim was filed ear- they followed protocol. dous risk of (a reversal on) appeal ly last decade. The company re- Quicken co-counsel Robert indiantrails.com if I make a finding that presumes mains strongly committed to de- Davis, partner at Mayer Brown LLP the current letter is right or that fending this meritless claim where who works from New York and the prior letter was wrong,” Mur- we expect to defeat this self-serving Washington, D.C., is also an attor- phy said in court. plaintiff law firm’s parasitic action. ney for the Washington-based “We don’t want to have a set of Quicken Loans has and does follow Mortgage Bankers Association, and cases that get resolved at trial and all labor regulations and laws, pay- obtained the original 2006 labor de- ONE HU partment opinion in response to a G ND then in 2018, when there’s a differ- ing overtime to every team member IN R T E query for the association. Attor- A D ent administration, we get a com- who is morally, ethically and legal- R Y B E

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pletely different finding from the ly entitled to receive it.” S Department of Labor that re- In court, Quicken attorney Jef- actually used that role to obtain a C 100 ruling that could undercut the Quicken employees. The 2006 Department of Labor letter was issued with caveats that the opinions were based solely on (9,@6<;/,790+, the facts presented and also that Davis had represented that the opinion was not sought by a party 6-;/,7(*2& in pending litigation. Nichols Kaster later notified the department that Davis was involved in the Quicken case and asked it to review the circum- stances behind the 2006 letter. La- bor then withdrew that finding and issued the new one. Comfort and Gilbert in a 2008 letter to the editor of Crain’s decried the litigation as an exploitive bid by Nichols t$IBSUFST Kaster lawyers to seek overtime Luxury for employees who already were t5PVST (WSH`LYZULLKLK eligible for incentives. “Quicken Loans instead (of t4IVUUMFT 0UX\PYLVUSPUL overtime) pays commissions and 00 bonuses! And the amount of com- t$POWFOUJPO4FSWJDFT SAVE $100 OFF mission and bonuses we pay dwarfs the overtime a loan officer t$PSQPSBUF&WFOUT MARKETING PR DESIGN NEW MEDIA may have otherwise received by Contact Indian Trails for details. Must use this identitypr.com/careers 700 percent or more,” he wrote. t4DIFEVMFE4FSWJDF promotional code at time of booking: CDB52jul Chad Halcom: (313) 446-6796, [email protected] 20100705-NEWS--0006-NAT-CCI-CD_-- 7/2/2010 5:43 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS July 5, 2010 OPINION LETTERS It’s time to invest Airport is McNamara’s vision Editor: But Ed did just that, allowing the Crain’s Detroit Business I write in response to a story in airline, in partnership with Wayne welcomes letters to the editor. the May 3 issue titled “Decades County, to design and build the ter- All letters will be considered for had their share of misdeeds” that publication, provided they are minal on time and under budget. in logistics hub plan mentioned the late Wayne County signed and do not defame Ed McNamara understood how Executive Ed McNamara. individuals or organizations. to get things done. In 2002, just In the 1990s I was privileged to ne of the more compelling economic strategies to come Letters may be edited for length months before he left office, Ed lead the airline effort with Ed to and clarity. recognized the importance of cre- along in Southeast Michigan is the TransLinkeD plan conceive, develop and build the Mc- Write: Editor, Crain’s Detroit ating an authority to oversee the championed by the Detroit Regional Chamber. Namara Terminal at Wayne Coun- O Business, 1155 Gratiot Ave., airport. Putting politics aside, Ed Last week, the chamber and Michigan State University un- ty Detroit Metropolitan Airport. Detroit, MI 48207-2997. hammered out a deal with then- Ed had a vision of a “midfield” veiled a report on just what expanding the region’s logistics as- E-mail: [email protected] Gov. John Engler that was ap- terminal — something new and sets to become a modern, inland air-sea-rail-ground port could proved by the Michigan Legisla- modern that could be used to make ture in two weeks. bring. The short answer: about 66,000 jobs. (Bill Shea’s reporting Detroit one of the world’s leading North American Airport J.D. Pow- The statute created an indepen- can be found on www.crainsdetroit.com; the full report, at 100 airports. He understood that in or- er award. Planning for the termi- dent authority to oversee the air- pages, is on the chamber’s website, www.detroitchamber.com.) der for Wayne County to grow and nal, roadways, runways, taxiways, port, making sure it operates effi- The study so far represents a collaboration between the prosper, the best economic genera- the fire station, parking lot, power ciently and effectively for everyone, tor was the airport and the airport plants and hotel, began in earnest without political interference. chamber, MSU, Wayne State University and players within had to accommodate international in the early ’90s. Ed McNamara’s the current infrastructure supporting supply chain manage- Thanks to Ed, the McNamara service. Ed pursued his vision for vision and his ability to turn that Terminal, the North Terminal, ment, from rail to trucking to air freight. the airport and the terminal pro- vision into reality prepared De- and the airport itself are well-posi- The plan suggests leveraging existing assets — internation- ject from the early days of his ad- troit for the 21st century and made tioned for the future. In the course al border, international airport with nonstop international ministration. Metro the sixth-largest airport in of knowing Ed very closely over a Ultimately Ed’s vision became the world. decade, I got to know him well. He connections, rail links to Chicago, Canada and the East Coast the 121-gate international terminal It’s hard to imagine most elected — to build a major intermodal port that embraces southwest was a man of his word. you see today in Detroit — the best officials giving up the right to de- Richard H. Anderson Ontario and northeast Ohio. connecting facility anywhere in sign and build the largest public CEO This is the kind of project that can transform a region. The the world and winner of the 2010 works project they would ever see. Delta Airlines New Economy Initiative, the $100 million foundation-supported fund created to jump-start economic initiatives, con- tributed to the research. Now is the time to invest — before other regions beat Southeast Michigan to it. TALK ON THE WEB SMART vote in primary is ‘yes’ From www.crainsdetroit.com scribed: the rebuilding of Detroit? Voters in Southeast Michigan will be asked on Aug. 3 to re- Re: Macomb developers donate Reader responses to stories and Montag new a property tax to support the regional SMART bus system. $2M building to Oakland University blogs that appeared on Crain’s We hope voters say “yes.” Web site. Comments may be A university presence is much Re: Keith Crain: I got an The .59-mill tax produces broad regional economic benefit: needed and welcome for Macomb edited for length and clarity. Nearly 40,000 rides a day take workers to jobs and residents to County. Kudos to Mr. Anton and economics lesson last week doctors and schools. The 1,200-mile service area covers much Mr. Frankel for the donation, and need for a redundant border cross- Sure, we can emulate Tennessee of Wayne, Oakland and Macomb counties. to OU for creating this educational ing, this fire gave a perfect exam- with no income tax — a state that opportunity. ple. It caused a short closing, slight would be considered poor by most The bus system touts its “green” credentials; its entire fleet Mark Cory people living in Michigan 10 years switched from diesel fuel to a biodiesel blend this year, and it delays and lost productivity. Just imagine if this had been a worse inci- ago. Or we could decide to copy a will introduce low-floor hybrid electric buses this year. state like Minnesota, the state in Re: Granholm goes to Washington dent closing the bridge for a day or the Midwest with the highest per It’s tempting for voters to dismiss a tax request if they don’t so. Having a second bridge further to urge Congress to act on Medicaid capita income ($41,552) and the use the service. But a quality bus system is a necessity for the downriver would have kept the This would be another Band-Aid lowest unemployment. Of course, region’s economy. Plus, the millage enables SMART to qualify border open with no delays and no on a problem that would cover the they pay higher taxes there, too. lost trade. for millions of federal and state public transit dollars. But what (Arthur) Laffer and his state until Granholm is out of of- Roman Nestorowicz Oakland County Executive L. Brooks Patterson, Wayne fice and someone else has to make friends have failed to realize is County Executive Robert Ficano and Macomb County Chair- the hard decisions. that it’s not taxes that make a differ- man Paul Gieleghem have joined a citizens’ advocacy group cre- Jay Fredericks Re: Detroit: A tax-free zone? ence, it’s the percentage of people I think the problem in this ap- with a college degree that deter- ated to help finance a public relations and advertising blitz in mines a region’s prosperity. If SMART’s support. Urban expert John Mogk is president of Citi- Re: Fire closes Canada-bound proach may be the fact that the federal government does not possess a Michigan wants to be prosperous zens for a SMART Future, www.citizensforasmartfuture.com. lanes of Ambassador Bridge plan, schedule, nor even a goal for again, it needs to become a leader in attracting and retaining college The group would welcome contributions from organizations and If the state Senate needed to see Detroit. Thus, how could it choose employers who rely on SMART. the reason why the region has a how to go about the process de- See Talk, Page 7

KEITH CRAIN: Three cheers for a new kind of democracy Something has to be wrong. Peo- school board has been the rise of charter Representative democracy al- is going to be based on the educa- ple are voting for the wrong peo- quite upset ever since schools increases, it lows you to pick the people who tion of its youth. With a dwindling ple. It recently happened in South Bobb showed up. And, will continue to make it can then choose the administra- population in our schools as well Carolina, and we can’t help but like most everything else more difficult for the tors. This might be a more logical as the rest of the city, drastic ac- wonder about Detroit. in Detroit, the school Detroit Public Schools. way of picking a school board than tions must be taken. It would seem There seems to be little doubt that system was once larger The head of the through an election. that Robert Bobb is making those the elected school board for the De- and taught more stu- school board resigned Let Detroit’s mayor, who is necessary but unpopular deci- troit Public Schools is dysfunctional dents than it does today. last month and has elected, choose the school board sions. It has to be done. at best. The Detroit schools were in People are moving been charged with mis- with, perhaps, advice and consent But long term, there has to be a such disarray that Gov. Jennifer from Detroit. And char- conduct and lewd be- on the part of the Detroit City system that actually works. What Granholm appointed a temporary ter schools are giving havior. The superinten- Council. It’s obvious that there the city has today in its elected caretaker, emergency financial serious competition to dent was dismissed — needs to be plenty of checks and board simply is completely out of manager Robert Bobb, to try and fix the public schools in Detroit. or wasn’t, depending on whom you balances in this process. control. Let Robert Bobb do his job the multitude of problems that con- Many — but certainly not all — are talk to. There seems to be no end of We all know that it has been a and debate a system that will func- tinue to plague the schools. doing a very good job of providing surprise and chaos among the dysfunctional system for many tion after he is gone, which we hope Needless to say, the elected an alternate choice for parents. As elected school board. decades. Yet the future of this city will be later rather than sooner. 20100705-NEWS--0007-NAT-CCI-CD_-- 7/2/2010 5:43 PM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: The more diverse our leadership, the better

Pop quiz: In the list we pub- history, Rosin reports, advantage of all their more than $400 million in annual community — by not cultivating lished June 28 of the highest-paid women hold the major- adults, not just half of revenue. They also are running di- leadership internally that taps the executives in our region’s publicly ity of the jobs in the them, have pulled away visions of larger, out-of-state com- whole gamut of intellectual assets traded companies, what was miss- U.S. (As we know in from the rest.” panies (in banking, for example). — whether they are female, His- ing? Detroit so well, that In Southeast Michi- In the nonprofit world, women panic, African-American or Asian, Out of the 75 CEOs and non- could be helped along gan, our economy has run three large health care organi- new immigrants or second genera- CEOs listed, there were no women. by the 1 million jobs been shaped for zations; the largest is the $3.4 bil- tion. And with one or two exceptions, lost in Michigan alone, decades by the auto in- lion Henry Ford Health system, The world — as we knew it — the top-paid execs were mostly many of them in the dustry. The executive run by Nancy Schlichting. And changed. Our regional business white men. A handful of readers male-dominated auto class reflects it. lest we forget, women run the Uni- culture needs to change with it. commented to me on the absence sector.) But our Crain’s lists versity of Michigan and Michigan of women. Rosin sees something tell an interesting sto- State. Mary Kramer is publisher of One of those readers also sent bigger and global: “As ry, too. Most people agree that this re- Crain's Detroit Business. Catch her me a link to a story in The Atlantic thinking and communi- First, women fare gion suffers from a decline of en- take on business news at 6:10 a.m. magazine’s July/August edition cating have come to eclipse physi- better in privately held compa- gaged leadership. But if leadership Mondays on the Paul W. Smith show that’s creating a buzz. The head- cal strength and stamina as the nies, where women are CEOs or comes mostly from the private sec- on WJR AM 760 and in her blog at line sure is provocative: “The End keys to economic success,” she chairmen of 13 of the top 200 in our tor, our region’s major companies www.crainsdetroit.com/kramer. of Men.” Author Hanna Rosin sug- writes, “those societies that take region, the largest of which have are cheating themselves — and the E-mail her at [email protected]. gests our society — globally and lo- cally — is shifting in a way that could lead to a female-dominated power structure. For the first time in American Catherine Larive, Associate Broker Keller Williams Realty Clarkston • 248.534.2264 [email protected] • cglmichiganhomesales.com catherinelarive.com TALK CONTINUED 6510 Town Center, Ste P • Clarkston, 48346 ■ From Page 6 8000 S Channel Drive Harsens Island St grads. And the states with low tax- Clair Flats St. Clair County Michigan (US es, like Tennessee, are not doing a side) $385,000.00 reduced by $15,000. very good job in that area. Summer Retreat or Year Round Island Home. David Waymire Washington Cedar paneling throughout home, Open Great Room, Rec Room with Natural Are you kidding? His tax cut ﬁreplace, Open eat in Kitchen dining area snake oil got us all into this. No credible economist believes in this with breakfast bar and built in china cabinet. guy. Helipad for ﬂying into your private retreat. Gregory Gamalski Steel Seawall. Additional property available to purchaser is located at 7928 Dederichs No ‘one’ thing, no ‘one’ person, Hwy which has channel/canal access to 8000 S got us into ‘all this.’ One thing does Channel drive via boat. You can park your car seem apparent here in Michigan. at Dederichs Hwy hop on your boat for your Raising taxes hasn’t proven a very destination hideaway island retreat. No need positive direction to take. Rather Sandy beaches to purchase an annual slip at a Marina. 7928 than risk insanity, why not consid- Dederichs Hwy vacant property is an additional er a different course for a change? J.T. Pedersen $125,000.00. So Purchaser of 8000 S Channel Drive has the option to purchase Dederichs Backs to state land Fountains and lakes Re: Civic Fund received over $2.5M Hwy. Call for Details. 24 Hour Notice to show property required do to location. in donations, gifts When will we see a list of the donors? $2.5 million in gifts, with $860,000 in 2008; that’s a lot of money, so one must wonder if any high rollers were major contributors who deducted the contributions on their business or personal tax returns. Walkout sites available Seasoned Citizen

Re: Granholm calls Senate vote

devastating to Michigan View from water Sand Piper Cranes What we need are “employment” benefit programs. How about we … require these 87,000 or more unem- ployed workers to perform some productive work for our state for Deck patio view at least three days a week, or attend school for a minimum of three days a week in order to qualify for any additional state unem- Channel view ployment assistance? Vacant Lots 1 to Buckeye1 12527 Dixie Hwy/Perryville Rd Groveland 2.56 acres + - Elk Ridge Twp Northern Oakland County. Midway Preserve Groveland Twp Northern Re: Former Detroit School Board Sand & Gravel “Pit” 3 miles South of Grand Oakland County. Also known as Blanc/Dixie Hwy(Saginaw). Sits directly across President Otis Mathis turns himself in 12640 Wildwood/Elk Ridge Crossing from Renasiance Festival Location. Light Does anyone in Detroit have any Premium lots in very unique community, Industrial, Commercial, Residential Vacant idea of what their school board has complimented by gorgeous wooded views Land 117+ or - Acres with 48 + - Acre Private been doing over the past 15 years? and Ridgeview Park views. Walkout and Spring Fed Lake, with 2 bonus residences in- They have run deficit budgets, en- Daylights sites available, depending on your dured corruption and now the for- cluded (off Perryville) Great family retreat or Master architectural plans.Once a private nature mer president of the board is the estate property. Reduced to $4.9 million. Live suite preserve. 44 Lots to choose from, Prices laughing stock of the nation. Is it in one residence while your Estate is spectacular starting at $20,000. Easy terms. any wonder why the children being built, and or use as caretakers home. Views Call for additional details score at the bottom of the list of Call for details schools? Richard Cooper ADVERTISING COURTESY OF HVT ENTERPRISES INC. 20100705-NEWS--0008-NAT-CCI-CD_-- 7/2/2010 4:20 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS July 5, 2010

REPORTER’S NOTEBOOK

Daniel Duggan BACK IN BUSINESS covers retail, real estate CMBS deals make a comeback, and hospitality. but middle-market loans lag, Call (313) 446-0414 or Page 10 write dduggan @crain.com. real estate Daniel Duggan Renaissance Center deal big For the first time in three years, Hello, good buy people in Detroit real estate circles are talking about an office move The case for buyers other than one by Quicken Loans. With prices lower Two recent office deals have As first reported by Crain’s, Blue We’re Cross Blue Shield of Michigan is in “ involved a user buying a build- the final stages of signing a deal to after downturn, committed to ing. In Southfield, First Mercury take over roughly 400,000 square Financial Corp. bought 26600 Tele- feet of space at the Renaissance Southeast graph Road, a 98,000-square-foot Center. building, for $3.25 million. building sales stir In Troy, the finance firm Do- The move would mean another Michigan, eren Mayhew is about to close on 3,000 people in Detroit being moved BY DANIEL DUGGAN and the timing the purchase of the 77,000- from the insurance company’s CRAIN’S DETROIT BUSINESS Southfield campus. square-foot Columbia Center was right for Tower III for $3.4 million. The But what the real estate brokers hile sales in metro De- firm leases space in the nearby and landlords have been talking troit aren’t at the same us to look at PNC Tower and does not plan to about is the impact of having the W level as in 2006 or 2007, move immediately. Renaissance Center off the table. real estate professionals are hap- owning a Looking at pricing, Mark The 3-million-square-foot complex py they’re not at the same level as in 2009. Crawford, Doeren Mayhew man- has loomed both physically and building. aging director, said buying was fiscally over the city for the past year. Major office buildings, shop- ” more appealing than leasing. In particular, the 500 Tower, which ping malls and industrial build- Mark Crawford, “We’ll have room to expand, has been occupied by EDS, is in a ings are being Doeren Mayhew and we’ll have a nice new build- Renaissance Zone. APPRAISALS bought this year, both as in- ing with exposure to I-75,” he The Renaissance Zone is an said. “We’re committed to South- economic-development tool used to Beyond vestments and compare: by users, as oth- east Michigan, and the timing attract big companies, such as EDS, Sales too few was right for us to look at own- to Detroit. Occupants get a variety of er properties se- to establish NATHAN SKID/CRAIN’S DETROIT BUSINESS ing a building.” tax breaks, including on the Michigan cure high-level real estate Expect more user-owned and - Business Tax. values, Page 9 refinancing talk about buying buildings by showed volume almost greater deals. the pound, not the square foot. than the previous two quarters occupied buildings in the near Historically in Detroit, landlords future, said Steve Morris, man- have been opposed to the use of While some take the recent Buildings are so inexpensive; it’s combined. A partial second sales as a good sign of things to almost priced like a commodity.” quarter shows $95 million in aging director of the Southfield these building-specific tax incentives, office of Newmark Knight Frank. as it gives an unfair advantage to come, others say it’s too soon to Sales volume has been in- sales compared with $35.3 mil- In a hypothetical example of a certain buildings because listing call it a comeback. creasing for office and retail lion in the first quarter of 2010 60,000-square-foot building, Mor- brokers can offer a nice building — “From a general sales perspec- sales but decreasing for industri- and $69.7 million in the fourth ris said, a tenant might pay and a tax break — for moving in. tive, we’re not at the bottom al, according to data from quarter of 2009. roughly $10 million for 10 years There was a collective sigh of relief yet,” said Jeffrey Bell, first vice Bethesda, Md.-based CoStar Sales are down considerably president in the Southfield office Group. from the most recent peak in of rent. Buying the building for in 2007 when the One Kennedy $3 million and putting in Square building became fully of CB Richard Ellis. The sales volume for office the second quarter of 2008 at occupied, particularly because it was “You are still hearing people transactions as of June 14 $698 million. See Sales, Page 9 also in a Renaissance Zone. The Renaissance Center has been known in recent history for being RECENT DEALS aggressive in going after new tenants and has been cutting great deals on Columbia Center Tower III Partridge Creek refinancing rent. Ⅲ Location: 305 W. Big Beaver, Ⅲ Location: Clinton Township Downtown broker Sam Munaco, a Troy Ⅲ Size: 612,000 square feet principal at Southfield-based Ⅲ Size: 77,000 square feet Ⅲ Owner: Taubman Centers Inc. Signature Associates, said the Ⅲ Sale: Kennedy Associates to Ⅲ Loan: $77 million, issued by complex is a Class A space that’s close soon. Goldman Sachs in June. been offering Class B rates. Ⅲ Buyer: Doeren Mayhew Ⅲ What it means: The loan is Ⅲ Price: $3.4 million financed through a commercial “With that off the table, it puts COSTAR GROUP LORMAX STERN DEVELOPMENT CO. every Class A and Class B building in Ⅲ What it means: Troy-based mortgage-backed security loan, Detroit in a better position,” he said. Columbia Center Towers I and II accounting firm Doeren Mayhew Fairlane Green one of the few in the state. The Ⅲ Location: 101 and 201 W. Big determined it’s a better deal to Ⅲ Location: Allen Park deal represents Wall Street’s Munaco is part of the leasing team interest in financing metro Detroit for Comerica Tower, which joins 150 Beaver, Troy buy a building than it is to lease Ⅲ Size: 400,000 square feet space at the nearby PNC Tower. retail property. West Jefferson as the only Class A Ⅲ Size: Combined 506,000 Ⅲ Sold: In June, by , Some say this is the start of a Archon Group square feet a real estate investment buildings with vacancy in the city right trend of user-owned buildings. now. Ⅲ Sold: In May, by Seattle-based company that is a subsidiary of Ⅲ Brokers: Jones Lang LaSalle A.J. Weiner, senior vice president Kennedy Associates Real Estate New York-based Goldman Sachs Counsel LP represented Doeren Mayhew; CB Group Inc. in the Detroit office of Jones Lang Richard Ellis represented the Ⅲ Ⅲ Buyer: LaSalle, said the Blue Cross deal will Buyer: Troy-based Kirco seller. Lormax Stern bring much-needed stability with the Development Corp. Development Co. and West Hartford, Conn.-based Simon addition of more positive absorption Ⅲ Price: $62 million Konover Co. to the downtown market. Ⅲ Broker: CB Richard Ellis Ⅲ Price: Not disclosed But when paired with the promised represented the seller; Kirco represented itself. Ⅲ Broker: CB Richard Ellis move of 2,200-2,400 Quicken Ⅲ What it means: Kirco, a minority represented the seller; Lormax employees to the Compuware represented itself. Building, Weiner said the city is investor, bought out the majority investor and financed the deal with Ⅲ What it means: Wells Fargo picking up some momentum. one of the largest office loans in provided financing, showing that “There isn’t an office market in the the country this year. While the banks are interested in financing country that wouldn’t love the shot in real estate deals. Also represents financing was based on the high COSTAR GROUP the arm that Detroit’s about to get,” quality of the buildings, it is seen the continuing trend of local he said. as a sign that major investment companies buying real estate from sales can happen. national firms leaving town. TAUBMAN CENTERS INC. 20100705-NEWS--0009-NAT-CCI-CD_-- 7/2/2010 11:08 AM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 9 Focus: Real Estate Mission Vacation! Insightful legal solutions Fewer deals make it hard to judge values that help our clients find time BY DANIEL DUGGAN deal, so across-the-board sale aver- He said retail is incredibly diffi- to take their summer vacations CRAIN’S DETROIT BUSINESS ages are hard to come by. cult to value because there are sec- One sale might be motivated by a ond- and third-generation shopping With real estate sales still com- borrower who can’t pay the mort- centers with no real prospect for ing in at a trickle, appraisers and gage payment and has to sell a leasing. brokers say establishing value for building for the amount left on the Recent appraisals also require commercial real estate has become note, he said, while another sale strong reliance on the income of the increasingly difficult. might be an investment based on le- building — almost exclusively, said Few comparable sale prices are gitimate market values. The differ- John Ross, managing director of available, and loan defaults are ence in prices can be vast. Stout Risius Ross Inc., a Southfield- forcing sales at prices that are un- “You have sales at $25 per square based firm that has a valuation realistically low. foot or $100 per square foot,” he practice. In addition, asking a broker to as- said. “You have to know the motiva- “When it’s the case of an income- sess a value has become more time- tions. In some cases, it’s just that producing property, you’ll look at The attorneys at McDonald Hopkins consuming than the seller wants to get out at any the cash flow, not solely the market are on a mission to solve it once was, said price. That changes the numbers.” sales,” he said. “An investor wants Robert Pliska, Marshall Brulez, managing direc- to look at what kind of cash this the business and legal issues managing director for the valuation practice for property can spin off. So you look at that interfere with your work-life balance. tor of Sperry Van Michigan at CB Richard Ellis, said ap- the leases, how they’re going, if Ness/Property In- praisers have to use their best judg- there is an upturn, a downturn — vestment Advisors ment in figuring out which sale that’s the indicator.” LLC of Birming- comparables to use. While appraisals are taking more Attorneys on a Mission® ham. “In some cases, you can go back time to complete, there is also a de- Your mission is our mission. We never lose sight of it. “Three years three years and not find a sale that crease in the amount of work, so ap- ago, it took 60 Pliska has any meaning,” he said. “So we praisal firms have to keep rates seconds based have to dig deeper and be careful competitive and can’t charge more on the (capitalization) rate and the about what information we use. We money for services. vacancy of the building,” he said. have to interview brokers about “You do what you have to do,” “Now it’s a mind-boggler.” what they see in the market and get Ross said. “But this is something Pliska said a recent request for a the story behind the sales.” that will be criticized by the IRS or A business advisory and advocacy law firm value on a local property took al- The easiest appraisals are on the SEC in some cases. It has to be most two days to put together. multifamily deals, Brulez said. done right.” 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 The biggest challenge, he said, is “That class has suffered a bit, but Daniel Duggan: (313) 446-0414, 248.646.5070 that there is a story behind every it’s still the most stable,” he said. [email protected] Carl J. Grassi Stephen M. Gross President Detroit Managing Member

Chicago • Cleveland • Columbus • Detroit • West Palm Beach Sales: Real estate stirs after downturn www.mcdonaldhopkins.com ■ From Page 8 $2.5 million for improvements still Industrial deals languish each other wondering what’s next,” puts them well ahead of what he said. “There’s a lot of unknowns, they’d spend in rent. While sales volume has been and these companies aren’t ready to “For a company like Doeren high on the office side, volume re- move swiftly, and they’re going to Mayhew, which is a company that mains low on the industrial side, prefer leasing space.” does well and is planning to be according to research firm CoStar. here for another 10 years at least, In the June 14 data, the region showed $35.95 million in sales vol- Local investors thrive it can save a lot of money by pur- ume. Just shy of the end of the sec- With the Columbia Center I and chasing a building,” Morris said. ond quarter, sales were unlikely to II office towers as well as with the “For other firms in that position, eclipse the $61 million in industri- Fairlane Green shopping center, projecting long-term growth, I al sales from the first quarter. sales represented local investors think you’ll see more examples of The first quarter of 2010 was also buying out national investors. them buying buildings.” down from $66.86 million in the Since it was developed, Fairlane fourth quarter of 2009 and $81.79 mil- Green has been owned by the Ar- The barbell effect lion in the second quarter of 2009. chon Group, a real estate invest- In the second quarter of 2008, ment company that is a subsidiary Nationally, the commercial real CoStar shows a sales volume of of New York-based Goldman Sachs estate market is geared toward $296.2 million. Group Inc. On June 4, it was bought two types of properties: those at One new industrial develop- by West Bloomfield Township- the top and those at the bottom, ment announced in April is the based Lormax Stern Development Co. said Bob Bach, chief economist headquarters and manufacturing Lormax Stern Partner Chris for Santa Ana, Calif.-based Grubb facility for U.S. Farathane. Brochert said the firm was eager to & Ellis Co., which has a Southfield The $27 million facility will be buy a prized retail asset in metro office. developed by Southfield-based Gen- Detroit and is looking for more. “It’s a barbell market right eral Development Corp. “This is exactly the kind of asset now,” he said. “There is demand However, more leases than sales Lormax Stern would purchase,” he said. “It’s a long-term ownership for top quality, and then demand are being inked, said Jason Capi- position.” for Class B and Class C properties tani, executive vice president over- seeing the industrial division for Retail sales volume rose to that are well underwater.” Troy-based L. Mason Capitani Inc. $115.4 million in the second quarter Also at play in the sale of build- Capitani said his clients are still as of June 14, up from $102.9 million ings are the leasing rates in the finding difficulty establishing in the first quarter, according to region, said Ron Gantner, execu- lending on good terms. CoStar. The fourth quarter of 2009 tive vice president for the Detroit “And there’s a difference be- showed $82 million in sales. office of Jones Lang LaSalle. tween getting lending and getting In the first quarter of 2007, the In recent history, sale prices lending with good terms,” he said. region had $6.3 billion in sales. were too high to be supported by “There is lending available, but it Jones Lang LaSalle’s Gantner said the income a landlord could ex- comes with a lot of baggage and there is some stability — a stark dif- pect based on annual rent. high costs.” ference from last year. Purchase prices are coming in Capitani said sales are slowed on “Underwriting is very aggres- line with reasonable expectations the demand side, as well. sive, but at least you can under- to get an income based on rent, he Automotive suppliers who have write something,” he said. “The said. survived the slowdown remain con- key is that things will sell, but they “Now, the market for sales can servative and are unwilling to com- have to be priced right and in the support the leasing rates,” said mit to purchasing property. right location.” Gantner. “Folks are getting realis- “It wasn’t but a year ago that Daniel Duggan: (313) 446-0414, tic on pricing.” these companies were looking at [email protected] 20100705-NEWS--0010-NAT-CCI-CD_-- 7/2/2010 11:09 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS July 5, 2010 Focus: Real Estate CMBS deals make a comeback, but middle-market loans lag

BY DANIEL DUGGAN their ears perk up. If we bring a CRAIN’S DETROIT BUSINESS deal in the $30 million to $45 mil- As lending lion range … then all of a sudden, The commercial mortgage- “ they’re more aggressive.” backed security loan is back in becomes more Refinancing deals have business in Detroit, a sign that happened as well, with two while getting commercial real es- available, we local real estate investment tate financing isn’t easy, there is a trusts able to secure metro trickle of money for good deals. have more Detroit retail properties with “It’s conservative, but it’s not CMBS loans. frozen like it was a year ago,” said clients Farmington Hills-based Cameron Piggott, group leader of Ramco-Gershenson Properties the real estate practice at Detroit- looking to Trust (NYSE: RPT) refinanced based Dykema Gossett PLLC. “Banks West Oaks II in Novi under a are doing some lending, and a few modify their $31.3 million CMBS loan in March. CMBS deals are coming back, but existing debt. At the time, President and CEO it’s nowhere near what it used to ” Dennis Gershenson said the fi- be.” nancing plan will help the compa- Dennis Bernard, Banks, such as Wells Fargo & Co., ny this year and was a unique Bernard Financial Group have financed several traditional deal. deals in the area recently, and “This loan is one of the first there has been a return of the available to replace troubled loans CMBS transactions to be complet- CMBS loans, which were common from earlier in the decade. ed this year and highlights that until just before the lending melt- “We’ve done 28 loan modifica- long-term, attractively priced capi- down. tions in the last three quarters,” tal is available for quality assets in Michigan Chapter 5 Dennis Bernard, president of Bernard said. “There’s no end in strong markets,” he said. 2nd ANNUAL FOUNDATION FUNDRAISER Southfield-based Bernard Financial sight, because as lending becomes Similarly, Bloomfield Hills- Group, was responsible for arrang- more available, we have more based Taubman Centers Inc. (NYSE: Friday, September 17, 2010 ing the recent CMBS loan on the clients looking to modify their ex- TCO) will refinance its construc- sale of Tower I and Tower II in the isting debt.” tion loan on The Mall at Partridge Columbia Center complex. Nationally, there have been Creek with a $77 million CMBS He could not verify the price, some signs of a return to lending loan, according to reports by the but sources told Crain’s in May access, but only on the highest- industry publication National Please join us at the beautiful Roostertail, a Detroit icon on the waterfront, that the buildings sold for $62 mil- quality properties, said Jeff Ma- Real Estate Investor. jewski, an executive managing di- IRUDIXQ¿OOHGHYHQLQJRIJRXUPHWIRRGPXVLFGDQFLQJUDIÀHVJDPHVDQG lion, with $42 million financed Not all recent financing has PRUH&DVKEDUDYDLODEOH through a CMBS loan. rector with Santa Ana, Calif.-based been through CMBS loans. Loans at the high end of the Grubb & Ellis Co., specializing in Wells Fargo handled the bank fi- IREM Michigan Chapter 5’s spectrum, such as Columbia Tow- debt and equity. nancing on the sale of Fairlane 2nd Annual Foundation Fundraiser ers, are being set up, as well as “The list of usual suspects is Green, according to the buyer, loans at the low end, under $4 mil- back and they’re aggressively West Bloomfield Township-based lion. quoting deals,” he said, noting that Lormax Stern Development Co. Friday, September 17, 2010 “What we don’t see right now New York-based Goldman Sachs But Dykema’s Piggott said 7:00 pm - 11:00 pm are loans in the middle — in the Group Inc., New York-based J.P. Mor- Michigan’s commercial real estate $7 million to $12 million range,” he gan Chase & Co., Charlotte-based fundamentals remain “depressed,” said. “That used to be most of our Bank of America Corp. and San Fran- and that makes it difficult for Advance Tickets: $75.00 per person business.” cisco-based Wells Fargo are all en- firms outside the region to invest. However, the pipeline looks gaged in financing of commercial “With banks, there has to be a At The Door: $100.00 per person promising, Bernard said. real estate deals. relationship involved,” he said. He has $180 million in loan ap- “But the minimum they’d even “They’re being conservative and For more information or to purchase tickets, call 248.615.3885 plications in the works. In addi- look at is in the $10 million to they’re concerned about overall tion, an ease in lending has fueled $15 million range,” Majewski said. property values.” his firm’s loan modification busi- “Under that level, we can’t get Daniel Duggan: (313) 446-0414, ness because there are more loans their interest. Above that level, [email protected]

ENTREPRENEUR AWARDS Crain’s seeks growing companies Nationally Recognized Substance Abuse for its Salute to Entrepreneurs. Entrepreneurs Residential Treatment Center make up a growing portion of I can help you to save a life today Michigan’s employment base and are of CHIEF EXECUTIVE OUTREACH increasing interest to the local business Just call me on my community. personal cell phone (734)476-9931 Crain’s Detroit Business will Denise Bertin-Epp publish in its Nov. President and Chief Nursing Officer, Brighton Hospital 15 issue a Salute to I Highest physician recognition by the American Society of Addiction Medicine (ASAM) Entrepreneurs. These awards will I Masters prepared and experienced therapists recognize problem-solving, I Highest percentage of addiction certified nurses in the USA (CARN) innovation and business acumen I Integrative therapies, including auricular detox acupuncture and yoga among entrepreneurs and second- I First choice for executives, health professionals and attorneys stage companies. www.brightonhospital.org Visit crainsdetroit.com/nominate for the online form. Nominations 800-523-8198 must be received by July 26. Questions? Contact Michelle Confidential • Patient/family support • Intervention liaison • Evaluation Darwish at (313) 446-1621 or Admission • Advocacy/counsel • Referrals • Concierge services [email protected]. SP1563 20100705-NEWS--0011-NAT-CCI-CD_-- 7/2/2010 11:10 AM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 11 CRAIN'S LIST: LARGEST NONRESIDENTIAL PROPERTY MANAGERS By square feet under management Total square feet Total square feet nonresidential Total square feet nonresidential property under nonresidential property under management Company property under management inside outside metro Address management metro Detroit Detroit Rank Phone; website Top local executive June 2010/2009 June 2010 June 2010 Major properties under management Jones Lang LaSalle Americas Inc. Jim Becker, international director; Ken 100,970,000 14,970,000 86,000,000 General Motors, Whirlpool, American Axle, Delphi 600 Renaissance Center, Suite 1260, Detroit 48243 Koupal, managing director; Lynn 75,120,000 1. (313) 967-4121; www.jll.com Wagner, managing director

CB Richard Ellis Inc. Michael Gerard, executive managing 39,287,567 18,271,204 21,016,363 Concorde Center, 3200 Greenfield, Dow Chemical Campus, 2000 Town Center, Suite 500, Southfield 48075 director; John Latessa, managing 37,949,914 Continental Automotive Systems, Star Theater Southfield 2. (248) 353-5400; www.cbre.com director

NAI Farbman Andrew Farbman 28,500,000 23,500,000 5,000,000 9400 McGraw, Fisher Building, New Center One, Oakland 28400 Northwestern Highway, fourth floor, Southfield 48034 CEO and co-president 28,500,000 Commons, Bingham Center, 1750 Summit, Metro Commerce 3. (248) 353-0500; www.farbman.com Center, 1250 Brown, Sheffield Office Park

Taubman Centers Inc. Robert Taubman 26,996,000 4,849,000 22,147,000 Fairlane Town Center, Dearborn; Great Lakes Crossing, Auburn 200 E. Long Lake Road, Suite 300, Bloomfield Hills 48304-2324 chairman, president and CEO 26,989,000 Hills; The Mall at Partridge Creek, Clinton Township;Twelve Oaks 4. (248) 258-6800; www.taubman.com Mall, Novi

Grubb & Ellis Management Services Frederick Liesveld 20,244,058 14,666,531 5,577,527 National City Center, General Motors, Earhart Corporate Center, 26555 Evergreen, Suite 500, Southfield 48076 executive vice president, managing 21,626,712 Farmington Hills Corporate Campus, Seven Mile Crossing, Troy 5. (248) 357-5756; www.grubb-ellis.com/Detroit director Corporate Center, Victor Corporate Center, Allied Commerce Center, TSC Michigan Inc. Ramco-Gershenson Properties Trust Dennis Gershenson 19,824,764 5,955,971 13,868,793 Tel-Twelve, West Oaks I and II, The Shops at Old Orchard, 31500 Northwestern Highway, Suite 300, Farmington Hills 48334 president and CEO 19,808,323 Hunter's Square, The Auburn Mile 6. (248) 350-9900; www.rgpt.com

Ashley Capital Susan Harvey 17,000,000 13,000,000 4,000,000 Brownstown Business Center South, Brownstown Business Center 41965 Ecorse Road, Suite 320, Belleville 48111 senior vice president 17,000,000 North, Romulus Business Center 7. (734) 957-1000; www.ashleycapital.com

Redico LLC Dale Watchowski 16,542,477 11,706,903 4,835,574 1 Towne Square, American Center, Travelers Tower, 1 Woodward 1 Towne Square, Suite 1600, Southfield 48076 president, CEO and COO 13,894,470 Avenue, Green Oak Village Place, Independence Marketplace, 8. (248) 827-1700; www.redico.com Waterside Marketplace

Ford Motor Land Development Corp. Donna Inch 14,065,312 14,065,312 NA Ford World Headquarters, Ford Research and Engineering Center, 330 Town Center Drive, Suite 1100, Dearborn 48126 chairman and CEO 0 Regent Court, Fairlane Plaza, Fairlane Office Center, Fairlane 9. (313) 323-3100; www.fordland.com Business Park

Finsilver/Friedman Management Corp. David Friedman 12,425,892 7,771,136 4,654,756 Pinnacle Commerce Center, Crystal Glen, Wilshire Plaza, First 34975 W. 12 Mile Road, Farmington Hills 48331 CEO and president 11,503,176 National Building, Penobscot Building, Mars Building, Arborland 10. (248) 324-2030; www.friedmanrealestate.com Mall, Parkwoods Shopping Center

A property manager oversees all financial, administrative, contractual, maintenance and daily operations for the interior and exterior of properties. This list is an approximate compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies with headquarters in the Detroit area are listed with their total property under management. Companies outside the area are ranked by property managed by their Detroit offices only. This is not a complete list but the most comprehensive available. All information was obtained from the companies. NA = not available. LIST RESEARCHED BY ANNE MARKS

CRAIN'S LIST: LARGEST RESIDENTIAL BROKERS Ranked by 2009 gross sales

No. of offices/ Company Gross sales Gross sales No. of residential No. licensed Average sales Address ($000,000) ($000,000) transactions brokers and registered per office Rank Phone; website Top executive 2009 2008 closed in 2009 sales representatives ($000,000) Real Estate One Inc. Richard Elsea $1,812.7 $1,961.8 17,128 31 $58.5 25800 Northwestern Highway, Suite 100, Southfield 48075 chairman 1,466 1. (248) 208-2900; www.realestateone.com

Coldwell Banker Weir Manuel B Kelly Sweeney 651.5 764.9 3,730 11 59.2 298 S. Old Woodward Ave., Birmingham 48009 CEO 427 2. (248) 644-6300; www.cbweirmanuel.com

Charles Reinhart Co. David Lutton 380.3 401.2 1,844 7 54.3 2200 Green Road, Suite E, Ann Arbor 48105 president 175 3. (734) 747-7888; www.reinhartrealtors.com

Edward Surovell Realtors Edward Surovell 362.6 362.1 2,609 8 45.3 1884 W. Stadium Blvd., Ann Arbor 48103 president 163 4. (734) 665-9800; www.surovell.com

Re/Max Platinum C Joseph DeKroub 307.0 179.4 2,316 4 76.7 6870 Grand River Ave., Brighton 48114 CEO 177 5. (810) 227-4600; www.only-remax.com

Re/Max Classic Carlina Boji 299.9 359.6 3,092 4 75.0 29630 Orchard Lake Road, Farmington Hills 48334 broker and owner 112 6. (248) 737-6800; www.detroitmetrorealestate.com

SKBK Sotheby's International Realty Douglas Hardy 249.0 279.0 456 1 249.0 348 E. Maple Road, Birmingham 48009 chairman 78 7. (248) 644-7000; skbk.com

Century 21 Today Inc. Douglas Hardy 243.1 263.1 1,352 4 60.8 28544 Orchard Lake Road, Farmington Hills 48334 president 225 8. (313) 538-2212; www.century21today.com

Real Estate Affiliates, Keller Williams West David Botsford 229.0 181.6 2,307 3 76.3 Bloomfield,Commerce & Troy broker and operating principal 307 9. 30500 Northwestern Highway, Suite 300, Farmington Hills 48334 (248) 626-2100; kellerwilliamswb.com Century 21 Curran & Christie Inc. Robert Curran 163.1 176.7 2,077 2 81.5 24711 Michigan Ave., Dearborn 48124 president 116 10. (313) 274-1700; century21cc.com

This list of leading residential brokers is an approximate compilation of the leading brokers in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available. NR = not relevant. B Weir Manuel Realtors acquired Coldwell Banker Schweitzer Real Estate Inc. in August 2009. The new firm is called Coldwell Banker Weir Manuel. 2008 figures represent combined totals. C On Oct. 1, 2008, Michigan Group Inc. acquired the franchise and name Re/Max Platinum. LIST RESEARCHED BY ANNE MARKS 20100705-NEWS--0012-NAT-CCI-CD_-- 7/2/2010 11:11 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS July 5, 2010 B-to-B customers’ fingers Jones Lang LaSalle welcomes newest team member to our do their walking online now Detroit ofﬁ ce When it comes to on- fice cleaning. Globally, searchability around terms a cus- line business tools, small more than 300,000 search- tomer is likely to use, not technical businesses may not be Small Biz es are conducted for the business jargon. taking advantage of the Solutions term “office cleaning” Young said that a company full array available — es- each month. Add in all should think about terms a layper- pecially if those busi- possible permutations, son would use to search for the businesses specialize in busi- like “office janitorial ser- ness. ness-to-business sales. vices” or “corporate But meeting the right search pa- Lindsay Romagnoli Traditionally, B-to-B cleaners,” and the num- rameters is only half the job. Associate businesses rely on word ber grows to more than a “The flip side is, very few small + 1 313 961 6650 [email protected] of mouth or existing con- million. businesses actually have a website tacts to get the word out, But search for “office that is capable of converting those said Mike Miller, head of Nancy Kaffer cleaning Detroit,” and leads into some form of actionable online sales and opera- the top links are to na- steps,” Young said. tions in Internet giant Google’s tional cleaning chains or other It’s not enough to have a website Ann Arbor office. search pages. that’s essentially an online Google’s research suggests that “If you look at these numbers, brochure, he said. A company’s site For real estate services: minority- there’s probably 3,000 to 5,000 needs to address the problem that owned busi- searches a month done in South- drove the potential customer to James C. Becker Ronald J. Gantner, CPA ONLINE POINTERS nesses may eastern Michigan by someone search. Market Director Executive Vice President Find help: Google be particu- looking up office cleaning ser- For example, a potential cus- + 1 313 967 4100 + 1 313 967 4105 is working with the larly unlike- vices,” Young said. “So if you hap- tomer who’s searching for the U.S. Small ly to use on- pen to be in the business of office terms “office party catering” Business www.us.joneslanglasalle.com/detroit line tools, cleaning services and you’re not should arrive at a different land- Administration to © 2010 Jones Lang LaSalle IP, Inc. All rights reserved. train small- Miller said. here, you’re invisible.” ing page than a potential customer business owners So the com- To make a business accessible searching for a wedding caterer. to use online pany held a online, Young said, it has to be “Research shows that the aver- business tools. workshop on searchable — and should be in the age person, when they click a Details: online tools top three results found on a perti- search finding, will spend seven www.google.com for minority nent keyword search. seconds on your site,” he said. “If /help/places business “A business has to figure out in seven seconds they do not think, /partners/sba owners. Rep- who specifically they are trying to ‘Oh, right, this is what I want,’ resentatives talk to,” he said. “And they need to they hit the back key and take the coffee!! from about 40 companies attended. think like a consumer, even if that next search result.” The No. 1 revelation, Miller consumer is a business.” Nancy Kaffer: (313) 446-0412, said, was the impact of a search: A company should base its [email protected] opportunity!! “The power of the information that you can get from search,” he said. interested?? “There’s a tool called Insights for Search — it’s a public tool that franchise?? anyone can go on Google.com to find,” he said. “Enter search terms and you can find out what the trends are for those search terms. Contact us at People found it powerful — you could see the power of entering the (517) 913-1987 or product, company name and trends, and see that people are [email protected] searching on those trends. I think that was an ‘aha!’ moment for a number of people.” For any B-to-B business, dismiss- www.biggby.com ing online marketing and advertising is a trap, said Mark Young, chairman of Redford Township-based Does your team advertising and marketing need to kick up agency Western Creative Inc. Young “It’s a terrible their heels? misperception,” he said. “Over We’ll show them how. 80 percent of businesses seeking a new vendor involve search in the Bringing teams together through innovative process. … When people think, events, entertainment, meetings and more. ‘Well, this is good for B-to-C but not B-to-B,’ decisions to choose a Simplify your planning through our vendor are still made by humans, one-stop service! and as humans we are all con- sumers.” And if a prospective customer the can’t find your company through cultural an Internet search, Young said, it’s a serious competitive disadvantage. concierge “A lot of small businesses have a program of the cultural alliance not figured out yet that the Internet of southeastern michigan, is the Yellow Pages,” he said. “I al- a 501(c)(3) organization ways find that small businesses are dumbfounded when they find out how many searches are conducted www.theculturalconcierge.org for what they do.” 248.766.5599 [email protected] As a demonstration, Young ex- amined trends on searches for of- 20100705-NEWS--0013-NAT-CCI-CD_-- 7/2/2010 4:21 PM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 13

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

PEOPLE Robert Takla, chair and medical direc- LAW nization, Detroit, from director of per- Joseph Yamin, attorney, Beier Howlett N THE SPOTLIGHT formance improvement/clinical PC, Bloomfield Hills, elected to presi- I tor of emergency medicine, St. John Emily Zelenock to partner, Honigman training and corporate compliance of- dent, The Detroit Gun Club, Walled Farmington Hills-based auto Hospital & Medical Center, Detroit, Miller Schwartz and Cohn LLP, Bloom- ficer; also, Wanda Bailey to unit direc- Lake. supplier Robert Bosch LLC has elected to advisory board, Perfect- field Hills, from attorney, Skadden, tor of older adult services, from named Serve Inc., Knoxville, Tenn. Arps, Slate, Meagher & Flom LLP, New Maximiliane deputy director, Detroit Wayne Coun- RETAIL Karen Mead to director of corporate York. Straub as CFO ty Long Term Care Connection Orga- Marty Rosen to general manager, Wire- purchasing, Botsford Hospital, Farm- nization, Detroit; and Tia Cobb to as- and executive NONPROFITS less Network Communications Inc., vice president, ington Hills, from director of clinical sistant unit director of life choices Bloomfield Hills, from general manag- controlling, implementation, Beaumont Hospitals, Risarg Huff to director of homeless unit, from deputy director, Federation er, Global Wireless Communications finance and Royal Oak. services, Neighborhood Service Orga- of Youth Services, Detroit. Inc., West Bloomfield Township. administration, effective June 1. In her new Straub position, Straub will be responsible for recording and managing financial information. Straub, 46, replaces Ulrich Kirschner, who has been named president of the starter motors and generators division, based in Schwieberdingen, Germany. Straub had been president of the chassis systems full brakes North American product division. She joined Bosch in 1993. She has a degree in Industriekauffrau IHK, and an advanced business administration degree with thesis, Diplom- Kaufmann, from the University of Munich. EDUCATION REFERRALS WANTED! Stewart Brannen INCREASE THE to director of the EARNING POTENTIAL Micro-Business Incubator, Cleary OF YOUR COMPANY OR University, How- ell, remaining SALES STAFF president, Stew- art Brannen & As- sociates LLC, Fen- ton. Ronald Brown to provost and se- Brannen nior vice president of academic affairs, Wayne State University, Detroit, from dean of the College of Health Professions, Temple University, Philadelphia. FINANCE Barry Lefkowitz to Join Forces with Jarvis Property Restoration, a proven leader in the disaster restoration managing director, BBK Ltd., industry! Market our services to your customer base, and if your customer retains our Southfield, from services, we will pay you, your company, or your sales representative a referral fee once partner, Baker Tilly Virchow the work is completed. It’s that simple. Krause LLP, Southfield. Example: A pipe break located on the second floor of a building was referred to Jarvis by an Independent GOVERNMENT Sales Representative. Jarvis performed emergency water extraction, structure drying and complete structure Robert Cannon, restoration. A sizable referral fee was paid once the work was completed. Clinton Township Lefkowitz supervisor, elected chairman, Southeast Michigan Council of Governments, Detroit; also Visit our website at www.jarvisconstruction.com/sales John Scott, Oakland County commissioner, elected first vice chairman; or call Bill Jarvis, President or Don Wielgosz, Director of Marketing Gretchen Driskell, Saline mayor, elect- at 586-954-4700 for further details about this exciting offer! ed vice chairwoman; Joan Gebhardt, Schoolcraft College trustee, Livonia, elected vice chairwoman; Susan Rowe, city of Wayne council member, elected vice chairwoman; and Michael Sedlak, When disaster strikes, Jarvis Property Restoration Green Oak Township clerk, elected vice chairman. puts your life back together. HEALTH CARE Shirley Edwards to executive director, Completion House Inc., Westland, remaining executive director, Spectrum Child and Family Services, Westland; also, Richard MacFarlane to executive director of Turning Point Recovery Program, from clinical director of In- sight Recovery, Sequoia Recovery Ser- vices LLC, Pontiac. 20100705-NEWS--0014-NAT-CCI-CD_-- 7/2/2010 4:21 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS July 5, 2010 BUSINESS DIARY Trimmer Affinia ready to ACQUISITIONS tion’s 140 employees. Wayne County Community College Michigan Roll Form Inc., Fraser, has OnSite ERT, Ann Arbor, has been con- District’s Downriver campus acquired Tru-Tech Tool and Machine tracted by the New York Fire Depart- in Taylor has opened the Heinz Co., Muskegon, and retained the for- ment to provide its OnSite ERT sys- C. Prechter Educational and Per- tem of tracking and locating forming Arts Center. Website: raise up to $230M in IPO mer president, Max Baauw, as sales manager. personnel and equipment on-scene at www.wcccd.edu. emergency events. President Tuxedo, Sterling Heights, BY TOM HENDERSON 2004 when Cypress Group LLC, a New has opened four new Michigan CONTRACTS Utica Steel Inc., Chesterfield Town- AND SHAWN WRIGHT York-based private-equity firm, ship, has been awarded the structural stores: 6907 Orchard Lake Road, CRAIN’S DETROIT BUSINESS bought the auto replacement-parts Qualitech, Bingham Farms, a technol- steel package contract by Frank Re- West Bloomfield Township; 6800 S. ogy integrator and software reseller, Westnedge Ave., Portage; 13 W. division from Dana Corp. wold and Son Inc., Rochester, for the Ann Arbor-based Affinia Group was selected by St. James Capital, new terminal at the Oakland County Main St., Milan; and 4738 Central The company makes replace- Bloomfield Hills, a mortgage lender, International Airport in Waterford Park Drive, Okemos. Website: Holdings Inc. paved the way for its ment parts such as brakes, oil fil- to install a computer network, server, Township. www.presidenttuxedo.com. upcoming IPO through strong ters and shock absorbers. hard disk backup and recover, and 15 Esperion Therapeutics Inc., Plymouth management and prudent cost-cut- Roesler said both the company workstations. Qualitech also an- JOINT VENTURES ting, according to an investment nounced its new property-manage- Township, a drug-discovery company, and the IPO timing have been ment software, Skyline Strategic Busi- has signed a collaborative research J.P. Sales Co. Inc., Ann Arbor, has banker who helped the auto parts helped by the poor economy. As agreement with the Cleveland Clinic ness Solution, designed to meet the announced the formation of a new company with a $300 million di- people hold on to their cars longer, to work on new therapies to boost needs of moderately sized property- joint venture between Cignys, Sagi- vestiture in February. they need to spend more on main- HDL as a way to treat cardiovascular naw, and Jay Industries Inc., Mans- management companies. Telephone: The company announced June tenance and replacement parts. (248) 646-0093. disease. field, Ohio. 25 it plans to raise up to $230 mil- “The company was in the right Plante and Moran PLLC, Southfield, EXPANSIONS NEW PRODUCTS lion in an IPO. place at the right time,” he said. an accounting and business advisory In a filing with the U.S. Securities firm, has partnered with IASeminars, Michigan First Credit Union, Lathrup “While the new-car market has The Michigan Boating Industries and Exchange Commission, the mak- Washington, D.C., a provider of train- Village, has opened a branch within Association, Livonia, has released rebounded to some extent, it’s still er of aftermarket auto parts said it ing courses on international financial the Meijer store at 3710 Dixie High- the 2010 edition of the Michigan at 12 million units instead of 16 and reporting standards, to offer certified way, Lincoln Park. Website: Boating Annual Directory and a had hired J.P. Morgan Securities, a half (million). People are still public accountants and other finan- www.michiganfirst.com. boating safety information kit. Barclays Capital, Bank of America, holding onto their cars longer.” cial professionals a comprehensive General Motors Co., Detroit, is dou- Telephone: (734) 261-0123; e-mail: Merrill Lynch and Roesler called the prospective range of IFRS training. bling the size of its global battery sys- [email protected]; website: Baird to help un- IPO “a smart move. I think there The Detroit Regional Convention Facili- tems lab at the GM Technical Center www.mbia.org. derwrite the of- will be a lot of interest given that ty Authority, Detroit, has awarded its campus in Warren. Auburn Hills-based Continental Au- fering. bus shuttle service contract to Trinity they did well in a down market. Sterling Heights-based Continental tomotive Systems Inc. has joined “Affinia’s Transportation Group Inc. of Wyandotte. Services, an independent food man- They proved themselves.” forces with a group of technology management NA Publishing, Ann Arbor, has chosen agement company, has opened a 5,000- companies to bring its AutoLinQ Brian Demkowicz, managing McGraw Wentworth, Troy, to manage square-foot commissary and ware- vehicle infotainment system to has been taking partner at Detroit-based Huron Cap- the group benefits for the organiza- house in Ferndale. market. The unit combines in-car action over the ital Partners LLC, a private equity navigation, real-time traffic infor- last two years to firm that bought an Ontario after- mation with Internet connectivity. get its profitabil- market maker of brakes and brake Germany-based Deutsche Telekom, ity in line with Roesler components last year, OE Quality the parent company of T-Mobile, is revenue,” said the Internet carrier for the device. Friction Inc., said the demand for af- CAREER MOVES Cliff Roesler, who worked on the termarket should stay strong even Endra Life Sciences, Ann Arbor, has launched the Nexus 128, a pre- divestiture of Quinton Hazell on be- as the economy recovers because clinical photoacoustic computed to- half of Affinia when he was at De- of the slow pace of the recovery. NON-PROFIT mography scanner for small-animal troit-based investment banker W.Y. But even though people are imaging. Website: www.endrainc. Campbell & Co. keeping their cars longer, they’re Director of Development com. Roesler subsequently co-found- starting to take vacations, and Historic Pewabic Pottery, a landmark ceramic education and design center, seeks an Urban Science, Detroit, has ed Birmingham-based Angle Advi- more miles driven means a need experienced Director of Development to lead the organization’s fundraising efforts. launched AutoClarity, a progres- sors-Investment Banking LLC. for more replacement brake parts. Responsibilities include conceiving, implementing and monitoring all aspects of sive forecasting tool for automak- ers. Website: www.urbanscience. “It was a very active effort by Affinia plans to trade on the New Pewabic’s fundraising program including individual and major giving, membership, com. management to clean up the busi- York Stock Exchange under the sym- direct mail, foundation and corporate support and special events. Strategic thinking is PC Treasures, Oxford, in partner- ness, to be focused on profits and bol AFN. The company, in a quiet critical to the success of this position as is an experienced track record in fundraising ship with Digital Works Australia not revenue,” said Roesler. period mandated by the SEC and (with major gifts experience preferred) and volunteer management, as well as the Pty. Ltd., has launched the ReZap “They worked diligently to ori- so prohibited from discussing the ability to have conversations with a wide variety of people and translate those into Battery Engineer, a battery ent the business so it would gener- IPO, has not disclosed its timing. recharger that adds life to all sizes ate the profits you’d expect from a deeper relationships with Pewabic. A bachelor’s degree and minimum of five years of standard batteries. Website: Affinia is expected to use part of experience in fundraising with a proven track record of success is a must. Excellent www.pctreasures.com. company of that size.” the proceeds to expand its foot- oral and written communication skills are required. Please submit resume via email to Quinton Hazell generated about print. Last year, about 60 percent [email protected]. Deadline for submissions is July 31, 2010. NEW SERVICES $250 million of Affinia’s $2.1 billion of sales came from the U.S., but the Paramount Bank, Farmington Hills, in revenue in 2008 but was a mon- company is building a 220,000- has added Paramount Wealth Advi- ey loser, said Roesler. The divi- square-foot plant in Shandong, sors, a new wealth-management sion, which distributed parts in China, and expects to sharply and investment-services division. seven European countries, was grow sales in Brazil, Eastern Eu- MARKET PLACE Telephone: (248) 538-2242. Website: sold to UK-based Klarius Group Ltd. rope, India and China. www.paramountbank.com. for about $300 million. Tom Henderson: (313) 446-0337, Trost Irrigation Inc., Orion Town- ship, has launched a website: Affinia had revenue last year of [email protected]. Shawn ANNOUNCEMENTS & BUSINESS & about $1.8 billion. It was formed in Wright is an intern. SERVICES INVESTMENTS www.trostirrigation.com.

HEALTH & FITNESS BUSINESSES FOR SALE OTHER Niki’s Pizza has reopened after a re- model at 734 Beaubien in Detroit. — Business for Sale — Telephone: (313) 961-4303. Get active and interactive at Established Grand Blanc gourmet market Detroit-based Asterand plc (LSE: grossing $3.7 million with high profit ATD) has been awarded a $1.5 mil- margin; family operated for over 20 years; lion extension of a Phase 2 study by family collects over $400,000 income / the U.S. Environmental Protection aHealthierMichigan.org benefits; beautiful 18,000 sq. ft. building Agency to profile the biological with many new fixtures; walk-in humidor properties of chemical compounds. and cocktail/wine bar; SDD, SDM, Class C The extension is in addition to a Call Us For Personalized licenses; full-service kitchen; deli, bakery, $1.7 million grant announced last year. Service: (313) 446-6068 produce, meat, etc.; highest volume independent Godiva retailer in state; great CLOSING TIMES: Monday 3 p.m., reputation; asking $3.9 million plus one week prior to publication date. inventory. DIARY GUIDELINES Please call us for holiday closing times. Call (248) 888-1466 Send news releases for FAX: (313) 446-1757 Business Diary to Departments, E-MAIL: [email protected] Crain’s Detroit Business, 1155 INTERNET: Gratiot Ave., Detroit, MI 48207- www.crainsdetroit.com/section/classifieds Call or email today for information 2997 or send e-mail to cdbdepartments@ Confidential Reply Boxes Available on a custom advertising plan! crain.com. Use any Business PAYMENT: All classified ads must be Diary item as a model for your prepaid. Checks, money order or release, and look for the Crain’s credit approval accepted. appropriate category. Without Credit cards accepted. [email protected] complete information, your item See will not run. Photos are welcome, Crainsdetroit.com/Section/Classifieds 313.446.6068 but we cannot guarantee they for more classified advertisements will be used. 20100705-NEWS--0015-NAT-CCI-CD_-- 7/2/2010 5:44 PM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 15 Bill would lessen tax on tobacco distributors LANSING — Tobacco tangible property. of tobacco-related excise taxes Clemente, D-Lincoln Park, would Free seminars on UI programs distributors may be close “We had to include all were to be excluded in 2008, 75 per- provide for creating authority-op- to eliminating what Capitol of those taxes in our gross cent in 2009, and 100 percent in erated “qualified educational op- The Michigan Unemployment In- they’ve seen as a costly Briefings receipts, and pay MBT on 2010 and beyond. portunity districts” that could cap- surance Agency has scheduled a se- problem in Michigan’s it just like it was revenue The newly passed legislation, ture future increases in property ries of free seminars for employ- business tax that passed of our business,” said Pol- sponsored by Jud Gilbert, R- taxes within the district to fund ers on Michigan’s unemployment in 2007. ly Reber, president of the Algonac, is retroactive and would economic development projects in insurance tax and benefit pro- Senate Bill 361, which Michigan Distributors & Ven- exclude 100 percent of the taxes, collaboration with higher educa- grams. gained life in the state dors Association. beginning in 2008. tion interests. Seminars will cover such topics House last week and “We are really nothing The bill has returned to the Sen- Types of tax increment-financed as the calculation of UI benefits, passed in a 101-6 vote, more than the tax-col- ate for a procedural vote before projects could include retail, busi- employers’ UI tax rates, qualifying would eliminate the fed- lecting agents.” heading to Gov. Jennifer nesses created with university for a state UI tax credit, complet- eral and state excise tax- Legislation passed in Granholm. professors, incubators, green ing tax-related forms and using the Amy Lane es collected by the dis- 2008 began a phase-out of building development, and transit agency’s online services. tributors in their gross certain taxes, fees and projects, said Andy Schor, assis- Southeast Michigan seminars receipts under the Michigan Busi- other items captured in gross re- New DDA designation clears House tant director of state affairs at the are scheduled July 16 and Aug. 18 ness Tax. ceipts — including the federal and A new type of downtown devel- Michigan Municipal League. in Detroit, Sept. 8 in Clinton Town- Such taxes have been consid- state excise taxes collected on ciga- opment authority that would in- It’s “economic development op- ship and Oct. 19 in Livonia. ered part of the modified gross re- rettes and other tobacco products. clude colleges or universities has portunities that are possible be- Information is available at (800) ceipts in the MBT — a levy based But “even at the level that we cleared the state House, in what’s cause of the location of the educa- 638-3994 or on the agency’s web- on a 4.95 percent business income still had to pay,” it posed a major being dubbed “town-gown” legisla- tional institution,” he said. site, www.michigan.gov/uia. tax and a 0.8 percent gross receipts cost for businesses, Reber said. tion. The House sent the bill to the Amy Lane: (517) 371-5355, tax on sales minus purchases of Under the phase-out, 60 percent House Bill 6243, sponsored by Ed Senate in a 76-30 vote. [email protected]

REAL ESTATE Suppliers: Leading way INDUSTRIAL PROPERTY OFFICE SPACE ■ From Page 1 The first quarter this year? Troy -- Sale or Lease Johnson Controls had net in- 1ST QUARTER EARNINGS 67,700 Sq. Ft. Mfg. or Whse. come of $297 million, Visteon had See What You’ve Without Ford Motor Co. Primary Power • 3 Truckwells $233 million, TRW had $204 mil- (60 reporting companies): $1.95/Sq. Ft. Lease Rate lion, Lear had $66.1 million, Arvin- Possible Seller Financing Meritor had $17 million, and the 2010 2009 Broker/Owner (248) 705-0835 Been Missing sector combined for net income of $926.1 million. $1.1 billion Pontiac Warehouse for Lease “No one expected this — just how -$1.2 billion Best Deal in Town! effectively the tier-one and tier-two suppliers would react to the cut in demand and so quickly be able to re- With Ford (61 reporting companies): duce their costs,” said Roesler. 2010 2009 “This is a spectacular quarter,” said Valenti. “Companies that were $3.2 billion • Warehousing, Machine/Die Storage, Manufacturing left for dead — like Lear and Arvin- • M/59, Widetrack, and Woodward Area Meritor — had great quarters.” • 5,000 to 200,000 Sq. Ft Available Valenti said the rebound in the with Offices, Short or Long Term auto sector is particularly impor- Leases -$2.6 billion • 8 Interior Truck Wells, 16 Ft. Ceiling tant in this economic recovery be- Heights, Sprinklers, Heated, Buss Duct, If you are in the market for new office space, cause sectors that usually lead the and Air Lines. 248-496-3405 consider the Detroit Branch, Federal Reserve Bank of Chicago: way out of recessions — finance I Free Rent up to One Year* and housing — were so battered in I Free secure onsite parking the downturn that other sectors I Very competitive rental rates corp Inc. No. 1 with net income of I need to lead the way this time. 1600 East Warren Avenue 1st class amenities and infrastructure I Suites from 6,000 - 24,000 sf. Valenti said that earnings re- $1.1 million. 531,000 SQ. FT. AVAILABLE ports should continue to make Citizens Republic Bancorp Inc. lost For your personal tour, contact Sheila Fogarty – 248-594-1155 – [email protected] Easily Accessible Low Rates Rail On-site Mgmt good news. $90.2 million, and Flagstar Bancorp * Subject to terms and conditions Exterior Storage www.waretechindustrialpark.com “Concerns about a double-dip Inc. lost $81.9 million. CATELLUS GROUP, LLC 810-695-7700 recession are ill-founded,” he said. Five of nine tech stocks had bet- OFFICE BUILDING OFFICE SPACE “As we move into the end of this ter quarters, but their marginal in- For Sale Flint Township Office Building year and into next year, you’re go- creases were more than offset by AVAILABLE NOW ing to see the recovery continue.” big one-time write-offs by Energy Sowerby tracks 75 public compa- Conversion Devices Inc., which went 4,000 to 100,000 sq. ft. nies statewide, and they had a me- from net income of $1.3 million to a Also 10,000 & 25,000 sq. ft. Historic dian improvement in net earnings net loss of $384.7 million. Free Standing Bldgs w/truckwells. Landmark quarter over quarter of 34 percent. The energy sector stayed strong, Skyscraper • Class A Office Building He said the share price of Michi- with DTE Energy Corp. going from • I-69 / I-75 / US23 near Bishop Airport $178 million in net income to 1 Mile from Metro Airport for sale in • Up to 20,000 Sq. Ft. Available - 300 car parking gan stocks compared to national stocks in the first two quarters bol- $229 million, CMS Energy Corp. go- the heart of • Fully Furnished with 100 pre-wired workstations REA CONSTRUCTION • 800 kw backup generator sters their first-quarter earnings ing from $70 million to $85 million Downtown • General Offices, Call Center, Data Center or results. and ITC Holding Corp. going from Medical Offices (734) 946-8730 Detroit “As ugly as the stock market has $28.7 million to $34.2 million. 248-496-3405 Also Heavy Industrial been the first half this year — the Some of the biggest quarter- David Stott S&P is down 3.6 percent — the aver- over-quarter improvements in oth- Land Available Building WAREHOUSE STORAGE SPACE age Michigan stock is up 8 percent. er sectors were: Ford Motor Co. went from a loss www.reaconstruction.net $1.85M “Michigan’s better first-quarter Self Storage Facility profit numbers continue to be re- of $1.4 billion to net income of 261 Units & Oil Change flected in share prices, while the $2.1 billion. overall market is negative. That’s Valassis Communications Inc., White Lake, Michigan a big takeaway,” he said. helped by a settlement of its law- Call Us For Personalized $1.6M Purchase Price Detroit Development suit against News America Market- Service: (313) 446-6068 Call Income Property Organization It wasn’t all good news. Real Estate, LLC Bruce K. Lister 248-932-0300 ext. 15 The banking sector continued to ing Inc., went from net income of FAX: (313) 446-1757 (248) 569-9123 struggle. Nine area public banks $13 million to $322.5 million. E-MAIL: [email protected] had combined losses of $180.3 mil- Champion Enterprises Inc. cut Brokers Welcome INTERNET: Call or email today for information lion, compared with losses of its losses from $514.8 million to www.crainsdetroit.com/section/classifieds on a custom advertising plan! $120.3 million a year ago. Four $12.5 million. See Advertise your banks reported better earnings in Masco Corp. went from a loss of Crainsdetroit.com/Section/Classifieds Products and Services in [email protected] the first quarter this year, and four $81 million to a loss of $7 million. for more classified advertisements Crain’s Detroit Business 313.446.6068 banks ended up in the black, but Tom Henderson: (313) 446-0337, all just barely, with Dearborn Ban- [email protected] 20100705-NEWS--0016-NAT-CCI-CD_-- 7/2/2010 6:31 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS July 5, 2010 Art fair: Event adapts to maintain elite status Humana: ■ From Page 1 the ways it courts and nurtures re- For the first time, there will be a New tack lationships with donors. Townie Terrace, designed to host The street fair runs July 21-24 Maker Faire an arts show top donors in a dedicated private ■ From Page 3 along with the State Street Area Art VIP area. ment rate in Michigan and the Fair, The Guild Ann Arbor Summer Art All who attend may also partici- continued economic uncertain- Fair and the South University Art Fair. pate in creating a community art ty, employers are eliminating AASAF is on North University project that Riley hopes will carry with a do-it-yourself twist or dramatically reducing cov- Avenue in the shadow of Burton into posterity. erage for specialty products.” Carillon Tower on the University of Organizers also are working to Christy said she expects Hu- Michigan’s central campus. A two-day festival of arts and Dearborn will be its only loca- increase the economic impact of mana’s sales for voluntary ben- “I feel well-prepared, but it’s the do-it-yourself mindset is com- tion in the region. the fairs. efit products to be similar to what you don’t know that’s scary: ing July 31 and Aug. 1 to The Henry Similar events take place in “The ROI on the Ann Arbor art the industry’s 4 percent nation- the things that aren’t written Ford in Dearborn. other states; the original is in San fairs is huge for our state,” Bila al annual growth rate. In 2008, down — you do this before you do The Maker Faire is meant to in- Mateo, Calif. said. “It has the reputation of being voluntary benefit sales in the that — the things people have in spire creativity, said George Mo- “We think this event will have one of the finest art fairs in the U.S. topped $5.2 billion. their heads,” said Riley. roz, special assistant to the presi- a mass grassroots appeal. It’s a U.S.” Christy said Humana also is The art fair business isn’t easy dent at The Henry Ford. perfect event for families to at- Just what is the ROI of the Ann offering critical illness and but remains a popular selling route “We think it will encourage in- tend. Adults will be just as capti- Arbor art fairs? Assuming the of- cancer insurance that pays a for artists. Some Michigan art fairs terest in science, technology, en- vated as youngsters,” he said. ten-quoted figure of half-million specific cash amount for a des- have relocated and some have gineering and math in almost a Single-day advance tickets (un- people attending is accurate, and ignated chronic disease, de- merged, but there are as many as stealth fashion. You get to see til July 15) for Saturday or Sun- accepting Bila’s conservative pending on the product. ever, said Sue Bila, executive direc- those domains presented in com- day range from $25 to $16, includ- spending estimate of $20 a person “You get a check for $30,000 if tor of Michigan Festivals and Events pelling and fun ways,” he said. ing admission to The Henry — not counting art purchases — you are diagnosed with a chron- Association. The Chesaning-based More than 200 exhibitors, Ford. Member discounts are the four-day gross is at least demonstrators and hands-on ac- available. Two-day and group ic disease like cancer or have a group is the largest state-event asso- $10 million. tivities will be part of the Maker tickets are also available. heart attack,” Christy said. “It ciation in the U.S. In terms of artist sales, the Faire-Detroit. Details: www.thehenryford.org pays you upfront, not afterward “In harder economic times, festi- AASAF projects an average of vals tend to flourish,” Bila said. (when the treatment is over).” $7,000 per artist for the four days. Christy said the critical ill- “Some outside artists question the ried, beginning in 1965. year’s exhibitors, including the 10 That makes the total take around Michigan economy, but when they It’s part of the reason Ann Arbor award-winning artists from the ness and cancer policies are $1 million. Specific artist sales fig- not intended to replace med- get here, they find sales are still is ranked 10th among midsize cities previous year. The top 10 artists ures for the other three fairs were good. They’re surprised at the out- on AmericanStyle magazine’s 2010 each year are chosen by two out- ical insurance. Rather, she not available by deadline. said, they can supplement ful- pouring of people attending and list of top 25 art destinations. The side judges, usually an academic However, a 2008 economic impact their ability to purchase. Street Art Fair itself is also top- or DIA curator, for $500 prizes ly insured medical insurance study conducted by all four art fairs and high-deductible health AASAF was launched in 1960, a ranked among peer festivals. based on artistic merit. together found that 46.7 percent of joint effort of the Ann Arbor Art Asso- This year, 750 artists applied for “This year, there were a couple plans and health savings ac- the people attending the fairs in the counts. ciation (now the Ann Arbor Art 100 spots at the AASAF. Another of artists who got the jury excited survey planned to spend less than Center), UM and campus-area re- 50 slots are filled by invitation, — it was new work or a new body William Schoof, director of $200. Another group benefits at Southfield- tailers. It was the first outdoor art granted to select artists each year of work from an existing artist — 19.2 percent planned to spend be- show to require that artists be ju- — about one-third of the previous old favorites, beloved of jurors and based Michigan Financial Services, tween $200 and $499. Six percent said Humana may be the only audience, working in a new medi- planned on spending $500 to $999. um,” Riley said. health insurer in Michigan to of- Three percent were going to splurge fer critical illness and cancer Looking ahead, the AASAF is with $1,000 to $4,999 budgeted for art looking for a way to sell the art fair policies. Commercial insurers spending. The survey interviewed offering those policies include artists year-round. Because the art 800 people; it has a margin of error fair revenue num- Aflac, ING Group, Colonial Life, Pru- of plus or minus dential and Unum, he said. bers often aren’t in- 3.46 percent. spiring, websites Schoof said more employers The ROI on Riley’s efforts to are offering specialty benefits such as Etsy.com are grow those numbers replacing art fairs as “ but are asking employees to the Ann Arbor come with her expe- pay the full cost. the venue of choice rience producing one for younger artists. “It has been going on the last art fairs is huge of Detroit’s longtime But while event sales couple years and gaining steam events. She came to can be modest for the last 12 months as benefit for our state. AASAF six months many artists, many costs continue to rise in double ” ago from the Universi- make more in post- digits on the health side,” Sue Bila, Michigan Festivals ty Cultural Center Asso- event sales to cus- Schoof said. and Events Association ciation in Detroit. As tomers they come in Nixon said employers also special events direc- contact with, Riley said. are looking at voluntary bene- tor there, she produced the Detroit A furniture maker may get or- fits to attract and retain key Festival of the Arts for nine years. ders for custom pieces. Many employees. Riley was hired after a national artists make money from commis- He said employees like the search to replace Shary Brown, her sions or are contacted afterwards, idea of purchasing such spe- highly regarded predecessor, who she said. cialty benefits as life, disability The simultaneous Ann Arbor retired after 12 years. and critical illness policies on a fairs also collaborate to enhance “We wanted someone mature, pretax basis. visitors’ experience. Continuous with significant experience, who “This could be 100 percent trolleys circulate through the four knew art and artists, and had been employee-paid benefits,” sites, making navigating the vast a professional in the event busi- Christy said. “More companies sea of art much easier. ness. While it is not expected that a are moving to voluntary bene- Representatives of the four fairs new director will know everything fits with dental and vision.” meet weekly. and be able to initiate a lot of Humana also will begin to of- Riley said, “It’s a terrific collab- changes in the first year, we did fer large employers in Michigan oration, enhanced since I came on not want a caretaker,” said Tom stop-loss insurance on their self- board. The more we talked, the Venner, a search committee mem- insured medical plans, Christy more we found we have to talk ber. Venner is dean of Eastern Michi- said. Coverage kicks in when about. Generally, what’s good for gan University’s College of Arts and the employer’s self-insurance to- one is good for all.” Sciences. tal group health claims reach a Like life backstage, at an art fair, Riley is working on an MBA in predetermined threshold. coordination is key, Riley said. marketing and leadership at Wayne Humana has about 10.4 mil- “Everybody plays an important State University. She’ll need exper- lion medical members and ap- role. We have to keep all the parts tise in both fields to lead the proximately 7.2 million special- moving smoothly from the people AASAF into a successful future. ty-benefit members for dental who clean our site to the people Yet Riley feels up to the chal- and vision coverage. Humana’s who sell our T-shirts,” she said. lenge of reviving her part of the art revenue increased 4 percent in Two changes will kick off at the fair industry. 2009 to $30.1 billion from 2010 street art fair’s annual Town- “To stay on top of the game, $28.9 billion in 2008. ie Party, a pre-fair event designed you’ve got to be innovative. The art For more information, to give solace to the residents who fair industry is no different. I visit www.humana.com/agents suffer through the annual inva- would love to say in two or three /plans/specialty_benefits/. sion. The Townie Party takes place years we’ll be leading the charge in Jay Greene: (313) 446-0325, July 19 starting at 5 p.m. new practices,” Riley said. [email protected] 20100705-NEWS--0017-NAT-CCI-CD_-- 7/2/2010 6:32 PM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 17 Butzel: Detroit law firm regroups after exodus www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] tions between 4 percent and 8 per- for people who were there much EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] cent over the same period. Dickin- longer than I was, just weren’t MANAGING EDITOR Andy Chapelle, (313) 446- son Wright PLLC was nearly flat, Butzel alumni land at new firms handled with the treatment I 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette and Clark Hill PLC reports a net gain would have liked to see,” he said. Smith, (313) 446-1622 or [email protected] of nearly 6 percent over the past 18 Attorneys who have left De- Kotz Sangster Wysocki and Berg “There were friends of mine in ENTREPRENEURSHIP EDITOR Michelle Darwish, troit-based Butzel Long PC are not (313) 446-1621 or [email protected] months. PC, Detroit. Hired Butzel share- that group, and I thought we COPY DESK CHIEF Gary Piatek, (313) 446-0357 “We are a long-established and landing at any one place in great holders James Y. Stewart in 2009 should have had a more formal or [email protected] numbers, but the attrition has ASSISTANT NEWS EDITOR Jeff Johnston, (313) well-known active firm in this and Dennis Egan in February, as policy about how we go about let- 446-1608 or [email protected] market, and that isn’t going to generated several recent lateral partners. ting go of a shareholder.” DATA EDITOR Anne Marks, (313) 446-0418 or change. We are going to be around hires, startup law firms and oth- Dawda, Mann, Mulcahy & Sadler, Egan moved in February to Kotz [email protected] WEB EDITOR Christine Lasek, (313) 446-0473, here for a while,” said Justin er new local businesses. Bloomfield Hills. Hired Butzel Sangster, which had already picked [email protected] Around 15 attorneys were let go WEB DEVELOPER Steve Williams, (313) 446- Klimko, Butzel’s newly appointed shareholders Dennis Schultz and up Butzel shareholder James Y. 6059, [email protected] president and managing share- through two structured cuts: one Richard Hewlett as members in Stewart as a partner in 2009. EDITORIAL SUPPORT Robertta Reiff (313) 446- holder, about employment moves. in January 2009, and a second in July 2009. The attrition has led the firm to 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- “It’s definitely our intention to late May of this year. That leaves Miller, Canfield, Paddock and look at subleases for other busi- 1687 TIP LINE (313) 446-6766 grow again in the future. We have around 58 voluntary departures Stone PLC, Detroit. Hired princi- nesses in order to right-size its of- REPORTERS no plans to try to remain static.” over the past 18 months, from a pal Shusheng Wang as co-direc- fice space, Klimko said. Ryan Beene: Covers auto suppliers, steel, higher peak of 243 attorneys Jan. 1, 2009. education and Livingston and Washtenaw Klimko, previously a vice presi- tor of global business in Febru- Butzel has put one of the two counties. (313) 446-0315 or [email protected] dent and shareholder on the firm’s The moves break out as follows: ary, after three years in Butzel’s floors it leases for its Ann Arbor of- Daniel Duggan: Covers retail, real estate and board of directors, was appointed to China Practice. fice, currently at 21 lawyers, on hospitality. (313) 446-0414 or [email protected] the new post in late May and will South Main Street on the market Voluntary moves Dykema Gossett PLLC, Detroit. Jay Greene: Covers health care, insurance and the share leadership duties with Chair- Picked up former director of Ko- for a new sublet tenant, Klimko environment. (313) 446-0325 or McDonald Hopkins PLLC, Bloom- [email protected]. man Philip Kessler. Kessler did not rean client relations, Daniel Mal- said. The firm fills four floors on Chad Halcom: Covers law, non-automotive return two phone calls in late June field Hills. Picked up six part- one, as of counsel in its litigation Jefferson Avenue for its main office manufacturing, defense contracting and Oakland ners and two associates, through and Macomb counties. (313) 446-6796 or and last week seeking comment. practice in February. in Detroit and sublets a fifth to au- [email protected]. “We were just asking Phil to do a series of hires in October, Feb- Smith Appellate Law Firm PLLC, dit and advisory firm KPMG LLP; it Tom Henderson: Covers banking, finance, too many things, and I’m going to ruary and April. Eight of its 16 Washington, D.C. Launched in may consider subletting more space technology and biotechnology. (313) 446-0337 or attorneys are now Butzel alum- [email protected]. be an additional person now over- January by Michael Smith, who there as one of many options, Nancy Kaffer: Covers small business, the city of seeing just some of the day-to-day ni. had been co-chairman of the ap- Klimko said. Detroit, Wayne County government. (313) 446- Akerman Senterfitt LLP, Miami, 0412 or [email protected]. management decisions for the pellate practice group. “It’s hard to pinpoint a universal Bill Shea: Covers media, advertising and firm,” he said. “It (governance) Fla. Hired eight attorneys and 13 Boyle Burdett DiDio PC, Grosse reason for every- marketing, entertainment, the business of sports, support staff June 15, upon acquir- and transportation. (313) 446-1626 or will be a joint collaborative effort Pointe Park. Shareholder Kevin one who left. [email protected]. by all of us and the firm’s board.” ing Butzel offices in Boca Raton DiDio added earlier this year. And it’s a weird Nathan Skid: Multimedia reporter. Also covers the Klimko’s appointment is not and Palm Beach. Dickinson Wright PLLC, De- trend to watch,” food industry. (313) 446-1654, [email protected]. Brooks Wilkins Sharkey & Turco Sherri Begin Welch: Covers nonprofits and connected to the downsizing nor troit. Picked up shareholder said Antoinette services. (313) 446-1694 or [email protected] PLLC, Birmingham. Commercial does it reflect the firm’s confidence Mark Heusel in June but lost Pilzner, a mem- LANSING BUREAU in Kessler, he said. litigation and bankruptcy firm shareholder Louis Theros to ber practicing Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- The firm would not disclose how launched in April 2009 with four Butzel in February. employee bene- 5355, FAX (517) 371-2492, [email protected]. or many attorneys were subject to partners and two associates from fits law at McDon- 115 W. Allegan, Suite 220, Lansing 48933. layoffs in May, except to say it was Butzel. ald Hopkins PLLC ADVERTISING “less than 5 percent” of attorneys China Bridge LLC, Ann Arbor. Involuntary separations in Bloomfield Pilzner ADVERTISING DIRECTOR Marla Downs, (313) and support staff in order to “bet- An attorney and a consultant at January 2009. Seven attorneys Hills and anoth- 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) ter align our resources with fore- Butzel both left in February to and several more support staff. er Butzel alumna. Pilzner did say, 393-0997 casted demand.” join C. Peter Theut, president of May 2010. An undisclosed however, that she and most other ADVERTISING SALES Jeff Anderson, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, Former Butzel shareholders the startup international busi- number amounting to “less than former Butzel attorneys at McDon- Kimberly Ronan, Cheryl Rothe, Dale Smolinski who asked not to be identified told ness consulting firm and a Butzel 5 percent” of attorneys and staff, ald Hopkins did bring a book of CLASSIFIED SALES (313)-446-0351 Crain’s that eight attorneys were shareholder who left months ear- but estimated at eight attorneys. business with them to the new firm. MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- affected. The firm previously lier. — Chad Halcom Stephen Gross, managing mem- 0416 or [email protected] trimmed seven in January 2009. ber of McDonald Hopkins’ Bloom- EVENTS MANAGER Nicole LaPointe MARKETING ARTIST Sylvia Kolaski Among the latest casualties is life you get divorced or separated fare better on their own. field Hills office, said each wave of SALES SUPPORT Suzanne Janik, YahNica Crawford Oakland County Commissioner and then can go your own way,” he Klimko would not comment on new hires was considered on its CIRCULATION Candice Yopp, Manager. David Potts, who joined the firm 11 said. “It’s disquieting in the way shareholder compensation. own, and some new attorneys had MARKETING COORDINATOR Kim Winkler years ago and was a shareholder that change sometimes can be. “In hindsight, I think everybody contractual obligations not to so- PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, practicing complex business litiga- But it can be also motivating and thinks they could’ve handled some licit others to come from Butzel. (313) 446-0450 tion and family law in its Bloom- stimulating, and I don’t wish the things, including that (the New Dan Sharkey, partner at com- CUSTOMER SERVICE field Hills office. firm anything except continued York expansion) differently,” said mercial litigation and bankruptcy MAIN NUMBER: Call (877) 824-9374 or write Potts said the firm redeemed his success in the future.” Dennis Egan, partner in commer- firm Brooks Wilkins Sharkey & Turco [email protected] SUBSCRIPTIONS $59 one year, $98 two years. shareholder equity and ended his Sources said the current attor- cial litigation at Detroit-based Kotz PLLC in Birmingham and a former Out of state, $79 one year, $138 for two years. employment but agreed to contin- ney exodus also has roots in the Sangster Wysocki and Berg PC and Butzel shareholder, also said that Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or ue lending him office space until 2007 Butzel acquisition of Hollyer former Butzel shareholder. “But firm has avoided leveraging Butzel (877) 824-9374. after the Aug. 3 primary election. Brady Barrett & Hines LLP in New then everyone can always see contacts to build business. SINGLE COPIES: (877) 824-9374. REPRINTS: (800) 290-5460, ext. 125; (717) 399- He faces two Republican chal- York. That firm had developed more clearly long after the fact.” “We are conscientiously trying 1900, ext. 125; or ashley.zander@theygsgroup lengers in his bid for a third term practices in financial services, Egan was among a group of four not to poach from Butzel. All other .com. TO FIND A DATE A STORY WAS PUBLISHED: as commissioner, and he said he real estate and corporate law — shareholders who ran for election things being equal, we’re trying (313) 446-0367 or e-mail [email protected]. needed the stability in his practice some of the areas hardest hit by against four incumbents on not to make the hiring choice or do CRAIN’S DETROIT BUSINESS IS PUBLISHED BY until he could make permanent the lending market collapse. Butzel’s board of directors in early anything that inadvertently starts CRAIN COMMUNICATIONS INC. arrangements after the primary. Several attorneys said Butzel has 2009. But he said that bid was a re- a sense of conflict,” he said. “We CHAIRMAN Keith E. Crain He also called the parting amica- had little to distribute in year-end sponse to the initial 2009 layoffs — have a lot of friends and former PRESIDENT Rance Crain SECRETARY Merrilee Crain ble and would not elaborate on the bonuses ever since the New York not shareholder compensation or colleagues there, and greatly re- TREASURER Mary Kay Crain reasons he was cut or the number acquisition and 2008 lending mar- the expansion in New York, which spect the firm.” Executive Vice President/Operations William A. Morrow of attorneys cut with him. ket downturn. This has prompted he had supported. Chad Halcom: (313) 446-6796, Group Vice President/Technology, “I’m fine with it. Sometimes in many attorneys to feel they could “I think some of the severances, [email protected] Manufacturing, Circulation Robert C. Adams Vice President/Production & Manufacturing Dave Kamis Chief Information Officer Paul Dalpiaz Corporate Circulation/Audience Development Director Liquor licenses: Kathy Henry Royal Oak takes a critical look G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) ■ From Page 3 EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) pay for the needed police pres- it the issue at a later date. Need & Allen PLLC and adviser to Johnson says bars bring in a lot 446-6000 ence. He said he has been to Lans- Johnson said the city has even Eye of the Tiger, said the difficul- of traffic to the city — but that Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 ing several times to plead his case had a bar owner offer to pay for po- ty of obtaining a new liquor li- doesn’t necessarily translate into is published weekly, except for a special issue the third week of January, a special issue the fourth to legislators, but to no avail. lice services if it meant he could cense transfer is stifling invest- money for the city. week of August, and no issue the third week of “At a dime a drink, even on a secure a license, but the commis- ment. “With existing buildings, December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals complete bender, it would cost you sion declined the offer. Rasor said “This is a situation where you whether rented for a bar or retail postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to about a dollar a night but would the commission turned down the have an active and big entertain- or office space, it doesn’t make a CRAIN’S DETROIT BUSINESS, Circulation generate about $1.2 million annu- offer because it was concerned ment district and, on the one hand, huge difference in what we will Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. ally,” Rasor said. “That is equal to about perceived pay-to-play poli- you have to think about the safety. take in from a tax perspective,” he Entire contents copyright 2010 by Crain the cost of 10 police officers’ pay tics. But, on the other hand, you have to said. Communications Inc. All rights reserved. Reproduction or use of editorial content in any and benefits.” Kelly Allen, partner in the keep businesses going,” Allen Nathan Skid: (313) 446-1654, manner without permission is strictly prohibited. Rasor said he is willing to revis- Bloomfield Hills-based Adkison, said. [email protected] 20100705-NEWS--0018-NAT-CCI-CD_-- 7/2/2010 6:32 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS July 5, 2010 Entertainment: In an Ilitch purchase, Palace could be jewel ■ From Page 1 Their interest has been linked — based Societe Generale, is still and not denied by anyone — to a OWNERS MANUAL around, but it shuttered its U.S. possible investment consortium Pistons deal a family matter This list comprises owners of sports-lending division after report- they’d create with Sam Simon, multiple major sports franchises — ing $7.1 billion lost from unautho- president and chairman of Atlas Oil Less than a year before he died, the Gersons, Wetsman and him- the National Football League, rized trades two years ago. Co., the Taylor-based fuel distribu- Bill Davidson said the Detroit Pis- self have agreed to sell their Major League Baseball, National tor with annual revenue of about tons franchise that he bought for share of the team as part of any Basketball Association and The funding $1 billion. He’s a longtime friend of $7 million in 1974 would remain deal Karen Davidson makes. He National Hockey League. Also the Ilitches and has been a court- in his family. said he expects to know within a included are English Premier Mike Ilitch is worth $1.4 billion, side Pistons season ticketholder He died at age 86 in March month if a deal has been reached. League owners because the British according to Forbes. The bulk of for 18 years. soccer teams rival their American that comes from the Little Caesar 2009, and his widow said in Janu- Coville was not sure about pro sports counterparts in value: Adding Simon and possibly oth- ary that she wants to sell the bas- Ethan Davidson’s intentions. A Enterprises Inc. pizza chain he and ers would lessen the up-front finan- Ⅲ Stan Kroenke: The real estate wife Marian launched in 1959. ketball team because she’s not in- message seeking comment was developer owns the Denver cial investment for the Ilitches. terested in being a team owner. left last week for Ethan David- For an April 2009 Crain’s story Nuggets (NBA), Colorado Avalanche about the pizza chain’s 50th an- The Ilitches, Simon and Palace Karen Davidson is believed to son. (NHL) and 40 percent of the St. Sports all have declined to com- have a 76 percent stake in the It’s unclear if Bill Davidson’s Louis Rams (NFL). Also has a niversary, Darren Tristano, execu- ment. The National Basketball Asso- team, and family and her late daughter, Marla Davidson majority stake in Arsenal (EPL) and tive vice president of Chicago- ciation deferred comment to the husband’s former business asso- Karimipour, has an ownership owns the U.S. pro soccer team the based research firm Technomic Inc., Pistons. ciates make up the remaining 24 stake in the team. Colorado Rapids. puts Little Caesar’s systemwide Others, in Michigan and else- percent. Comment from Karen David- Ⅲ James Dolan: Chairman of New sales at about $1.055 billion and es- where, also are interested in the The Pistons have been valued son was sought from her public York’s Cablevision Systems Corp. timates its restaurant count at team and could end up making at $479 million by Forbes.com. relations agent, Michael Layne of and Madison Square Garden Inc., 11,000. more lucrative offers, sources say. Other minority owners include Farmington Hills PR and market- which includes the New York Little Caesar President Dave Pistons and PS&E owner Karen Knicks (NBA) and New York Scrivano, without giving specifics, Bill Davidson’s sister, Dorothy ing agency Marx Layne & Co. Rangers (NHL). Davidson said in January that she Gerson, and her husband, Bud She married Bill Davidson, the said that estimate is low. The com- wants to sell the team, and then on Ⅲ Jerry Reinsdorf: The real estate pany doesn’t release financial data. Gerson; Davidson’s son from a chairman of Auburn Hills-based developer owns the Chicago White June 24 said that she expects a deal previous marriage, Ethan; and auto and architectural glass gi- The family has other sources of Sox (MLB) and Chicago Bulls income, such as concerts and before the season begins this fall — Warren Coville and William ant Guardian Industries Inc., in (NBA). a timeline some insiders say is Wetsman, business associates of 1996. events via their Olympia Entertain- Ⅲ Paul Allen: The Microsoft Inc. ment Inc. business, a food distribu- overly optimistic. Bill Davidson. Coville said that — Bill Shea co-founder owns the Seattle She inherited the franchise Seahawks (NFL) and the Portland tion and restaurant equipment when her husband, Guardian Indus- venues appear to be equally attrac- Square Garden, were listed above Trailblazers (NBA). Also owns a service and three movie theaters. tries Inc. Chairman Bill Davidson, tive. the Palace in the world rankings. U.S. pro soccer team, the Seattle MotorCity Casino, owned by Mari- died in March 2009. Any worry that an Ilitch enter- Sounders FC. an Ilitch’s Detroit Entertainment LLC Any sale of the Pistons will re- The crown jewel tainment monopoly will drive up Ⅲ Ted Leonsis: The AOL executive since 2005, ended 2009 with $445 quire a vote by NBA owners. prices are unfounded, Pollstar’s owns the Washington Capitals million in total adjusted revenue. PS&E has retained New York- The Palace opened in 1988 and Bongiovanni said. (NHL) and Washington Wizards There’s one other major rev- based Citi Private Bank Sports Adviso- was built for $70 million and re- The entertainment industry is (NBA). enue stream: If the Ilitches end up ry to act as financial advisers on cently updated for another $25 mil- counterintuitive to normal market Ⅲ Randy Lerner: He inherited the executing a deal, they also will be- any sale. lion — all paid for economics, he said. Competition Cleveland Browns (NFL) from his come the sole beneficiary of a 10- Meanwhile, the privately by the late father, credit card company MBNA year cable broadcast rights deal actually breeds higher costs. Chairman Al Lerner. Also is Ilitches are plan- Bill Davidson. “Competition doesn’t lower worth a collective $1 billion that It’s a challenge majority owner of Aston Villa FC the Pistons, Wings and Tigers ning to eventually “ That means the Il- prices. It just bids up the cost of (EPL). build a new arena itches could acquire talent and events,” he said. “Ulti- signed with Southfield-based Fox to carry three Ⅲ Malcolm Glazer: In real estate Sports Detroit in 2008. downtown for the a major venue that mately the public doesn’t win by and various ventures, he owns the Red Wings, now major league doesn’t come with a having competition.” Tampa Bay Buccaneers (NFL) and The teams themselves generate playing at aging Joe mortgage. Manchester United (EPL). revenue — but plenty of costs, too. Louis, and they sports franchises The 24,276-seat The financing Ⅲ Tom Hicks: The investment firm The Detroit Tigers’ $188 million hired away Palace Palace ranked sec- co-founder owns the Texas Rangers in revenue ranks 14th among Major Sports President even in a thriving ond in the nation as If the Ilitches want to buy the (MLB) and Dallas Stars (NHL) and League Baseball’s 30 teams, accord- Tom Wilson this a concert venue Pistons and Palace Sports, and co-owns Liverpool FC (EPL). ing to Forbes.com, which esti- year to help make market. based on first-quar- eventually a new downtown arena, Ⅲ Philip Anschutz: The real mates the franchise is worth $375 that happen. Wilson ” ter ticket sales, sec- it’s going to take creative financ- estate, oil and entertainment million. That’s 22nd in baseball. has said repeatedly Jan Katzoff, Radiate Group ond only to New ing because they’re looking at a investor owns the L.A. Lakers (NBA) Forbes also says the Tigers had that a joint Red York’s Madison cost approaching $1 billion. and L.A. Kings (NHL). Co-founded a $29.5 million operating income Wings-Pistons arena is logical. Square Garden, Pollstar reported. The Pistons are valued at $479 Major League Soccer and owns loss for last season, the worst in stakes in some of the teams. PS&E also has made public, via The rankings were determined by million by Forbes.com, and a new the majors. It defines operating in- court documents, that Wilson has tickets sold between Jan. 1 and arena is expected to cost about Ⅲ Ontario Teachers’ Pension Plan: come as earnings before interest, The 800-member plan owns 66 approached Karen Davidson about March 31. $400 million. taxes, depreciation and amortiza- Public financing appears to be a percent of Maple Leaf Sports & tion, and the estimates were pub- a sale to the Ilitches. Only London, England’s O2 Are- Entertainment Ltd., which includes While a Pistons sale grabs the na and Hamburg, Germany’s Color political long shot in the current the Toronto Maple Leafs (NHL) and lished in April. headlines, the entertainment Line Arena, in addition to Madison economy, and private lenders are Toronto Raptors (NBA). Richard Mike Ilitch freely spends on the going to want to see evidence of a Peddie is president and CEO of the Tigers player payroll far above money-generating plan in place. group. what would be typical for the mar- “It’s a challenge to carry three ket. This season, Detroit’s salaries major league sports franchises even please the banks. total $123 million. in a thriving market,” said Jan Kat- While no one has spoken in pub- The Red Wings ranked fourth in Self-Employed? zoff, executive vice president for lic about how an arena would be fi- the 30-team NHL across the board sports and entertainment for the Ra- nanced, it is known the Ilitches in franchise value ($337 million), Affordable Insurance diate Group in San Francisco. “But have privately talked to the city revenue ($130 million) and operat- from (the Ilitches) past track and county about it. ing income ($27.4 million). record, they could do it. They’re Neither government will talk Forbes ranks the Pistons as the probably looking at several efficien- about it. 30-team NBA’s fourth most-valu- cies and economies of scale.” Sports financing has become able franchise at $479 million and Life That probably would include more restrictive in recent years. third in revenue at $171 million. eliminating duplicate services be- Almost all of the members of the It’s also third in operating income Health tween the current Ilitch holdings original lending group that fi- at $47 million. and those of PS&E. It also likely nanced the $300 million Comerica Sports industry analysts see Retirement will include co-investors and some Park for the Ilitches in 1999 are more pros than cons to the Ilitches level of public financing. now parts of other banks or have owning three major league fran- Long-Term Care The joint arena should also ease stopped sports lending altogether. chises. If a deal does happen, Mike lender worry. Having the Red The original $145 million con- Ilitch will be the only person to be (800) 987-0290 Wings and Pistons in a joint arena struction loan was financed by a majority owner of three teams in takes the burden off cash flow be- bank syndicate led by Japan’s Sum- the four U.S. big leagues. (See box, cause the building has two anchor itomo Bank Ltd., which now is Sumit- this page.) tenants, Katzoff said. omo Mitsui Bank. “It’s a positive to have one big Zayti Agency “That’s a challenge for a lot of Two attempts by the Tigers to stable ownership group willing to IIS000320 buildings,” he said. refinance the stadium’s debt failed invest in a market that’s economi- Having more than 100 nights before the team successfully bor- cally challenged in its urban Call your local Insphere office for a FREE quote today! filled at the building with presea- rowed $140 million from another area,” Katzoff said. son, regular season and playoff consortium of lenders in 2005. Bill Shea: (313) 446-1626, games for the two teams will One of the original lenders, Paris- [email protected] 20100705-NEWS--0019-NAT-CCI-CD_-- 7/2/2010 6:38 PM Page 1

July 5, 2010 CRAIN’S DETROIT BUSINESS Page 19 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 26-JULY 2

and candidate videos in in Detroit has ruled — un- Ⅲ The U.S. Department of time for the August prima- First Mercury dercutting the defense used State announced it plans to ry election. by the span’s owner Manuel increase passport applica- Gilbert’s team In mid-June, the MiVote Moroun to fend off accusa- tion and renewal fees by project launched a 16-city, to acquire tions his bridge company $35 starting July 13, along 30-day road show across has behaved illegally in its with several other fee in- Michigan to record videos Valiant Insurance effort to add a second span. creases for passport cards, could tumble of state House and Senate The ruling could force the visas and consular ser- candidates for contested bridge company to modify outhfield-based First vices. races in the primary. what’s been built at the Mercury Financial Ⅲ The University of Michi- The group is posting the crossing site in recent S Corp. (NYSE: FMR) gan says it has received a videos at http://mivote.org, years, including toll has agreed to buy Valiant record number of applica- along with information on booths. $250M in value Insurance Group Inc., a sub- tions — 31,599 — from those candidates and others sidiary of Ariel Holdings, an prospective freshmen for a f NBA superstar LeBron Galatioto Sports Partners, pre- in the races for Congress, insurance company in fourth straight year, AP re- James abandons the dict the Cavaliers will see a governor, secretary of state, CASINOS I Cleveland Cavaliers now more modest value slide. Bermuda. The price is ex- ported. That’s up from attorney general and the Ⅲ The Michigan Gaming that he’s a free agent, the The team was valued at pected to be $55 million, de- 29,939 a year ago. state Supreme Court. Control Board voted to trans- value of the franchise $258 million in 2003, the pending on Valiant’s tangi- Ⅲ Towne Square Associ- Candidates are search- fer ownership of Greektown owned by Detroit’s Dan year James was drafted. ble book value at closing ates LLC, the landlord com- able by district and name Casino Hotel from the Sault Gilbert could plunge by later this year. pany co-owned by partner on the site. Ste. Marie Tribe of Chippewa $250 million. Gabe Anton of Mt. Clemens- Woodward signs to pay Indians to two investor That’s according to a re- Plan: Cobo needs flexible based Anton, Zorn & Sowerby port last week from tribute to auto industry No area banks make groups: a public company, Inc.; and Stuart Frankel, Bloomberg News Service. space, not expansion Greektown Superholdings president of Troy-based Another set of landmarks FDIC’s ‘shape up’ list Inc., and the private group, The A major expansion for Stuart Frankel Development paying homage to the auto When is no news good Greektown Newco Sub Inc., team, Detroit’s Cobo Center isn’t Co., are donating the industry is set to go up news? When you’re a bank clearing the way for the which was necessary, but flexible $2 million, 25,422-square- along Woodward Avenue. and the Federal Deposit Insur- casino’s Chapter 11 plan of bought by space would help the center foot Towne Square II build- The project, which is ex- ance Corp. doesn’t have any- reorganization, which be- an in- become more usable — and ing at 20 S. Main St. in Mt. pected to be completed by thing to say to you. came effective Thursday. vestor bulking up its sales and Clemens to Oakland Univer- midsummer and unveiled The FDIC made public its George Boyer, former group led marketing staff would sity to be used for class- in August, will cost $150,000 enforcement actions in president and COO of MGM by Gilbert make Cobo more profitable, rooms and offices. and consist of 25 signs that May, and none involved Grand Detroit, has been ap- for according to a strategic Ⅲ Metro Detroit, in com- describe each community’s banks in Southeast Michi- pointed chairman of the $375 mil- plan approved by the De- bination with the adjacent Gilbert lion in part in Woodward’s history. gan. None were shut down, board of directors. Nomi- troit Regional Convention Fa- areas of Ontario and Ohio, 2005, is valued now at The Woodward Pontiac and none were hit with en- nated to the board were De- cility Authority. The study could see up to 66,000 new $476 million by Forbes.com. Tribute will act as identify- forcement orders telling troit Medical Center CEO ing landmarks that tie all 11 was presented by Conven- jobs and $10 billion in new Gilbert is the founder of them to shape up or else. Mike Duggan; Benjamin communities together. tion, Sports and Leisure Inter- annual economic develop- Livonia-based Quicken One bank, though, Port Duster, executive managing The tributes, or signs, are national. ment if the region develops Loans. Huron-based Citizens First director of strategic adviso- 30-foot-tall glass and solar- a coordinated cross-border James, a two-time Nation- Bank, just missed the May ry firm Watermark Advisors powered pillars that are il- supply chain management al Basketball Association list, having been shut down COMPANY NEWS LLC; Freman Hendrix, chair- Most Valuable Player, be- luminated at night. on April 30 and its assets strategy, according to an Ⅲ Saginaw-based man of Detroit’s Charter came a free agent last week. The project is funded in taken over by Troy-based executive summary of a re- Rehmann, which has a large Revision Commission and He’s being courted by teams part by a $100,000 Federal Na- First Michigan Bank. port from the Detroit Region- office in Troy, has formed a deputy mayor under for- including the New York tional Scenic Byway grant Nationwide, 55 banks al Chamber and Michigan new unit in Troy called mer Mayor Dennis Archer; Knicks, New Jersey Nets, and matched by a $10,000 were hit with enforcement State University. The report MotorCities National Heritage Rehmann Corporate Investiga- Joel Ferguson, owner of of- Chicago Bulls and Miami actions. was presented to the New Area grant, $5,000 contribu- tive Services, the result of fices and apartments in 16 Heat, but could also re-sign Economy Initiative. tions from Oakland County buying Bloomfield Hills- Michigan cities and with the Cavaliers. Ⅲ A cut in federal fund- and Genisys Credit Union, and based Veritas Global LLC. founder of F&S Development The average value for an BITS AND PIECES ing means that the state’s $10,000 from the UAW-Gener- Ⅲ Warren-based Linc Lo- Co. and Lansing’s WLAJ-TV, NBA franchise is $367 mil- Ⅲ Ambiq Micro Inc., a Uni- No Worker Left Behind al Motors Co. gistics Co. said it has filed a an ABC affiliate. Their ap- lion, based on Forbes’ esti- versity of Michigan spinoff program will experience The first tribute was in- registration statement with pointments are under re- mates. Bloomberg quoted that makes energy efficient sharp cuts, according to a stalled in 2008 on Wood- the U.S. Securities and Ex- view by the gaming control former Portland Trail Blazers microcontrollers to extend ward in Ferndale. change Commission as part board. statement by the Michigan President Bob Whitsitt as the battery life of electronic of the firm’s effort to go Department of Energy, Labor saying the team could lose devices, was the big winner public. The sale is expected and Economic Growth. The up to a quarter-billion dol- Group makes videos of a business plan competi- to raise $115 million. The OTHER NEWS program will accept a limit- lars in value. Whitsitt now tion sponsored by two Cali- number of shares to be of- ed number of new appli- runs consulting firm Whit- of candidates, issues fornia firms, Cisco Systems Ⅲ The Detroit branch of fered and the price range the Federal Reserve Bank of cants, and most funds in sitt Enterprises LLC. The Center for Michigan, Inc. and Draper Fisher Jurvet- have not yet been deter- Chicago has launched a the year ahead will be used Others, such as former Detroit Public Television and son, a venture capital firm. mined. The company, legal- marketing effort — includ- to help current participants NBA Deputy Commissioner University of Michigan- Dear- It received $250,000 in seed ly known as Logistics In- ing one year’s free rent — complete training. Russ Granik, now vice chair- born is in the midst of a pro- investment from the two sight Corp. Inc., seeks to be to find tenants for its third man of New York-based ject to launch information companies. traded on the NASDAQ Glob- floor, representing about al Select Market under the 15 percent of its 235,000 OBITUARIES ticker LLGX. Linc is owned square-foot secure facility Ⅲ Jerome Fraser, 78, a for- by the Moroun family, on East Warren Avenue mer Catholic priest who co- whose CenTra Inc. consor- near I-75, AP reported. founded the Detroit-based tium of trucking companies Ⅲ Live Detroit Tigers civil and human rights or- is based in Warren. Manuel BEST FROM THE BLOGS score updates began ap- ganization that became Fo- Moroun also owns the Am- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS pearing on digital bill- cus: HOPE, died June 15. bassador Bridge. boards in metro Detroit Ⅲ Nashville-based Van- Ⅲ Willie Huber, 52, a for- this past weekend and will mer Detroit Red Wings de- Luxurious Italian eatery to open DRIC vote may be delayed guard Health Systems Inc. also appear for series run- fenseman, died June 28. plans to issue $225 million ning July 12-18, Aug. 2-8, Ⅲ Joseph “Joey Ryan” Everything about (Sen.) Jud Gilbert, R- in bonds to finance its pur- Aug. 16-22 and Aug. 30-Sept. Pietruska, a popular metro Zazios“ in Birmingham — Algonac,“ has hinted that a chase of the Detroit Medical 5. The scores will be at from the intricate Italian vote on the enabling Center, which includes pay- Lamar Outdoor billboards at Detroit disc jockey for tile work to the black legislation for a proposed ing $417 million to retire I-96 and Wixom Road; I-75 nearly 30 years who was granite counter tops at second Detroit River outstanding DMC bonds nicknamed “Mr. Boogie,” the wait stations — is bridge may not come until and Six Mile Road; and M- and other long-term debts. opulent. fall — possibly not until 59 and Van Dyke, and will died June 23 of renal fail- the start of the lame-duck rotate with advertising. ure. He was 62. ” session, aka silly season OURTS The campaign is being Ⅲ Vincent Reyes, former in Lansing. C handled by the Tigers’ ad- pastoral director of the De- Ⅲ The Ambassador Bridge vertising agency, Troy- troit-based Capuchin Soup Reporter Bill Shea’s blog on sports, the” media, Reporter Nathan Skid’s Detroit-area restaurant blog is not a “federal instrumen- based Simons Michelson Kitchen, died June 26. He can be found at www.crainsdetroit.com/skid transportation and marketing can be found tality” a U.S. federal judge at www.crainsdetroit.com/shea Zieve. was 69. DBpageAD.qxd 2/17/2010 12:32 PM Page 1