UM Aim: Set Pace in Year of Health Care Mergers

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Inside Snyder readies appointments Gale looks to hire 40

after reorganization tion. “I’m just a retired partner help- Taps CPA network ing an old friend. I have no role,” he ELECTION ROUNDUP said by email. Is she for Ⅲ Capitol Briefings: for help, advice However, Baird, whose expertise is Amy Lane looks at what real? DIA talent and human resources, is said by the lame-duck session BY TOM HENDERSON some close to Snyder to be key in sort- may hold, Page 6 hopes pulling AND AMY LANE ing through candidates. Ⅲ High expectations: back curtain CRAIN’S DETROIT BUSINESS Chris DeWitt, a longtime worker on Business hopes to Democratic campaigns who joined the achieve goals with will pay off It’s not quite the revenge of the CPAs, Snyder campaign as senior adviser Snyder, Page 30 but Gov.-elect Rick Snyder has been this fall, said Baird “has a great deal of Ⅲ Been there: Bing’s 10 tips on switching drawing on a longtime network of asso- GLENN TRIEST experience that will be very useful to ciates as he prepares to take office. Interviews are under way for Gov.-elect governor-elect Snyder, as far as from biz to politics, Page 30 Inside Chief among them may be longtime Rick Snyder’s team. putting together staff as well as how Ⅲ New leaders: Meet PricewaterhouseCoopers LLP executive things operate.” Richard Baird, who in 1982 hired a 23- good deal of time in Michigan despite three from the E-records help hospitals Bill Nowling, spokesman for Sny- Legislature, Page 31 year-old Snyder into predecessor ac- living in Chicago. der, described Baird as “a trusted Ⅲ To do: Events focus He declined to be interviewed about save money – study, Page 7 counting firm Coopers & Lybrand. Baird friend and confidant of the governor- on reshaping state’s recently retired and was active in Sny- Snyder but said he would not be part of future, Page 31 der’s campaign, reportedly spending a the transition team or the administra- See Snyder, Page 31 Crain’s List Largest automotive Economy 2011 suppliers, Page 21

This Just In Slow, steady growth marks Retailers must sell ‘alcohol energy’ drinks in a hurry long haul out of recession Liquor stores and other shops have less than 30 days to sell off their inventories of New, revived sectors give push “alcohol energy” drinks. the sectors where the state has But it’s the distributors BY MARTI BENEDETTI SPECIAL TO CRAIN’S DETROIT BUSINESS been trying to build up its pres- who are feeling the pinch of ence,” said Dana Johnson, chief Thursday’s decision by the General Electric Co.’s new Ad- economist for Comerica Bank. Michigan Liquor Control Com- vanced Manufacturing and Soft- He said that the process of the mission to ban the beverages ware Technology Center in Van state redeveloping itself and creat- starting Dec. 4 Buren Township will hire up to ing new sources of commerce will The drinks contain alcohol 350 people next year. The new jobs continue. With the auto sector and stimulants such as caf- are higher-level information tech- having a lower profile, other in- BOB CHASE feine. They typically come in Doug Strong, CEO of University of Michigan Hospitals and Health Centers, said nology posts. dustries will have a chance to gain packaging that might bring UM needs to keep up as other medical systems in the state merge and expand. Meanwhile, more prominence. to mind the word “extreme.” PSCU Holding Ser- Still, the state’s overall econom- Industry execs say the dead- TO THE CORE vices, a financial ic status remains a “mixed pic- line challenges distributors services ture,” said Robert Dye, senior who have more than 30 days of AND BEYOND provider for economist for PNC Financial Ser- UM aim: Set pace in year inventory to work through. Outlook: credit unions, vices Group Inc. in Pittsburgh. The Stores probably can sell off Sizing is planning state’s potential to grow high-tech their inventories of the drinks up 115 hires at and new-economy jobs is promis- by the deadline, said Mike 2011 in M&A, its offices in ing, while it continues to reel from of health care mergers Lashbrook, president of the lending, Auburn Hills an enormous loss of jobs in recent Michigan Beer and Wine Whole- transit, and Southgate. years. He said gross state product BY JAY GREENE lines. We have to develop more of salers Association in Lansing. nonprofits, real Economists should grow about 2 percent by CRAIN’S DETROIT BUSINESS a statewide presence.” The ban follows negative estate and say this kind of mid-2011. Strong said only one-third of its headlines about the drinks, manufacturing, slow and steady Unemployment is dropping Once it was enough to be the 44,000 patients admitted each year including ties to a Melvindale Pages 11-18 job creation — by faster in Michigan than national- state’s premier academic medical are considered local. Nearly two- rape case. emerging industries or industries ly, which has been helped, in part, center. Now, the University of Michi- thirds of its patients come from Two of three liquor com- that are coming off economic life by the flow of unemployed people gan Hospitals and Health Centers physicians who make referrals mission members present support — will help lead to a more out of the state, he said. plans to expand its influence be- from outside Ann Arbor. supported the ban, including stabilized economy and mild eco- Nationally, unemployment, yond simply seeking referrals for “It has been a successful recipe Chairwoman Nida Simona. nomic growth for Michigan in which was 9.6 percent in early No- advanced medical cases — it and formula,” said Strong. But the wants to grow through acquisi- See This Just In, Page 2 2011. vember, should fall to 8.5 percent growing interest of hospitals and “Hiring will come from some of next year, Johnson said. Michigan tions, mergers or affiliations with physician organizations to merge will continue to see improvement hospitals and physician organiza- into larger health systems for in the manufacturing sector, but it tions. managed care contracting threat- will be quite a while before its un- “We are the only health care ens UM’s business model, he said. employment rate gets to the na- system that truly has a statewide Experts predict that 2011 will be tional level — at least a year. Sta- draw of patients,” said UM CEO the year of the health care merger, tistics from the University of Doug Strong. “We admit patients acquisition and innovative affilia- Michigan point to the state creating from every county in the state.” tion. more than 80,000 new jobs in the But Strong said the growing In Southeast Michigan, a recent next two calendar years. consolidation of hospitals and study predicted an increase in NEWSPAPER physician organizations in Michi- See Economy, Page 32 gan “is a threat to our referral See Health care, Page 33 20101108-NEWS--0002-NAT-CCI-CD_-- 11/5/2010 5:31 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS November 8, 2010

ders, with 51 percent of respon- holder and regulatory approvals. is expected to close by Dec. 31. THIS JUST IN The way it was: 1990 dents saying production expand- — Sherri Welch — Marti Benedetti ed during October and 49 percent ■ From Page 1 Throughout our 25th-anniversary seeing an increase in new orders. Zoning change sought to make Indiana Metal buys ex-Ford site year, Crain’s will use this space Despite the improved produc- Two members were absent. to look at interesting items from tion, more than 61 percent of pur- way for skilled nursing home A 1.8 million-square-foot build- — Gary Anglebrandt past issues. chasing managers believe the busi- The future of the St. John De- ing in Shelby Township has been ness environment will remain the troit Riverview Center in Detroit sold by a holding company created United American Healthcare If you must same for the next six months. continues to be debated by neigh- to sell former Ford Motor Co. plants. However, the Southeast Michi- borhood groups and the city Plan- The industrial building, at picks new execs, new hometown make a gan PMI is higher than the nation- ning Commission. 50500 Mound Road, and 203 acres al average of 56.9, Chicago’s PMI of was sold to Indiana Metal LLC. The Detroit-based United American The commission plans to make 59.5 and China’s PMI of 54.7. asking price was $4.8 million, but Healthcare Corp. on Friday named telephone call, a rezoning recommendation at its — Dustin Walsh the sale price was not disclosed. a new CEO and CFO and an- Nov. 18 meeting that will go be- Indiana Metal is an Oakbrook nounced it is moving its head- always try to find a public fore the City Council for a vote in Terrace, Ill.-based investment quarters to Chicago. TechTeam keeping management January. phone — don’t ask to use the company led by Syed Arif, accord- United American’s new senior Under consideration is changing lineup intact after acquisition ing to state records. The company management team will manage the zoning so the former hospital, phone in someone’s office. plans to demolish oudated parts of the company’s operations from The management team of South- which closed in 2007, can become a the facility, making the remaining Chicago, according to a statement. field-based TechTeam Global Inc. will skilled nursing facility and assist- Peg Treacy, space available for sale or lease. The company’s remaining De- remain intact once the company is ed living center, said Rory Bolger, The Southfield office of CB troit-based executives and staff Churchill Associates Inc./ acquired by a Brazil-based compa- deputy director of the commission. Richard Ellis represented the seller will remain until the end of the ny, TechTeam said last week in a The East Jefferson building Impression Management and were the only brokers in- year, when the transition is ex- presentation to the U.S. Securities houses an urgent care center, clin- From an Oct. 29, 1990, article volved in the transaction. pected to be complete. and Exchange Commission. ics, an outpatient pharmacy and about business etiquette. Cell Automotive Components Holdings In addition to the location TechTeam, (Nasdaq: TEAM) a an Oakland University nurse training phones would eventually render LLC was created by Ford in 2005 as change, John Fife has been named the point moot. provider of information technolo- program. The property is owned a holding company designed to president and CEO of United gy outsourcing and business- by St. John Providence Health System, sell 17 plants spun off by Van Bu- American, two weeks after being Michigan is improving, according process outsourcing services, said but is in the process of being pur- ren Township-based Visteon Corp. named chairman of the compa- to a monthly survey by Wayne State Nov. 1 that its board had agreed to chased by a group of investors led — Daniel Duggan ny’s board of directors. University School of Business and be acquired by Stefanini Internation- by attorney Richard Levin. The sale Fife, who served as president of the Southeast Michigan chapter of al Holdings Ltd. for $93.4 million. Chicago-based CVM Inc. since the Institute for Supply Management. TechTeam did not return calls CORRECTIONS 1998, took over for former chair- The Southeast Michigan Pur- seeking comment. man Tom Goss, who will continue chasing Managers Index rose for According to the filing, the Ⅲ A story on Page 3 of the Oct. 18 issue should have said Marine Pollu- to serve on the board. the eighth straight month in Oc- combined company will employ tion Control hoped its 2010 revenue would exceed the $16 million it — Shawn Wright tober to 67.1, up from 65 in Sep- 11,600 people in 27 countries, serv- made in 1989 working on the Exxon Valdez spill. tember and 54.2 in August. ing 400 customers, and combined Ⅲ Wayne State University’s capital campaign has an end date of 2018, the Purchasing index shows growth Index values over 50 indicate 2009 revenue for both companies university’s 150th anniversary. Because of incorrect information, a economic growth. was $515 million. story published on Page 15 of the Oct. 25 edition wrongly stated the end Local purchasing managers be- October’s increase represents The deal is expected to close in date for the campaign is 2015 and that the 150-year anniversary is that lieve the economy in Southeast improved production and new or- the fourth quarter, subject to share- year.

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November 8, 2010 CRAIN’S DETROIT BUSINESS Page 3 Gale looks to hire 40 Health Care Extra

Views from the summit: Ford Karmanos after reorganization Leaders tackle eight health care questions, Campus mation database publisher. The 158,000-square-foot office Page 23 Parent Cengage However, Gale continues to now has about 630 employees, hire for other positions. with another 100 connected to the plans further “While the integration resulted office remotely. Martius early in the loss of approximately 30 po- “The job losses associated with Company index sitions due to work redundancies, this integration were a result of These organizations appear in this week’s Crain’s investment we currently have over 40 open overlaps between functions and re- Detroit Business: positions in Farmington Hills for dundancies in some of the work AAngle Advisors-Investment Banking ...... 12 BY BILL SHEA which we are actively recruit- people were doing,” said Lisa Her- backers to ArvinMeritor ...... 11 ling, Cengage’s senior vice presi- CRAIN’S DETROIT BUSINESS ing,” Adrian Butler, Cengage’s A.T. Kearney ...... 18 vice president for human re- dent for corporate communica- AZ Automotive ...... 11 Reorganization over the sum- sources, said in a statement. tions, in an e-mail. “Those mer by Stamford, Conn.,-based Cen- “Farmington Hills is a key strate- redundancies crossed a range of BorgWarner ...... 13 be honored Center for Healthcare Research and Transformation 23 gage Learning led to 30 jobs lost at its gic site for Cengage Learning, roles distributed fairly evenly Farmington Hills-based subsidiary and we anticipate further invest- across the former business units.” Clark Hill ...... 4 Ford, Karmanos Gale, an online education and infor- ment in this office location.” See Gale, Page 29 Comerica Bank ...... 1 Council of Michigan Foundations ...... 16 Crestmark Bank ...... 14 wanted impact CSM Worldwide ...... 13 BY DANIEL DUGGAN Delphi Automotive ...... 11 CRAIN’S DETROIT BUSINESS Detroit Department of Transportation ...... 15 Detroit District-Council Urban Land Institute ...... 3 Nearly 6 years old, Campus Mar- Detroit Institute of Arts ...... 3 tius Park continues to receive lo- The glam of sham Detroit Regional Chamber ...... 31 cal and national accolades for its Detroit 300 Conservancy ...... 32 impact on the city. Dykema Gossett ...... 12 The Washington, D.C.-based Ur- DIA hopes art fakes Emcon Technologies ...... 11 ban Land Institute and American Plan- ning Association recognized the First Commercial Realty & Development ...... 17 park this year. entice new visitors First Michigan Bank ...... 14 And this week, the park’s early Flagstar Bank ...... 14 BY SHERRI WELCH supporters, Edsel Ford II and Peter Gale ...... 3 Karmanos Jr., will be honored for CRAIN’S DETROIT BUSINESS Greater Detroit Area Health Council ...... 25 their work on it. Grubb & Ellis ...... 17 Usually, visitors go to a muse- “The more time that passes, the Hennessey Capital ...... 14 um to see priceless works of art. more people will realize the value Henry Ford Health System ...... 7 But the Detroit Institute of Arts of it as a community asset,” said Henry Ford Physician Network ...... 33 believes fakes, forgeries and art- William Watch, president of the Huntington Bank ...... 14 work by unknown artists, and Detroit District Council of ULI, which InterMed ...... 23 showing the way the museum de- will honor Ford and Karmanos at a termines authenticity, will be Inteva Products ...... 11 dinner Thursday. equally compelling. Jones Lang LaSalle ...... 17 “You can go down there with And the DIA is betting they’ll Lotus Bank ...... 14 your kids and go ice skating, expe- come to see its next major exhibi- Marcus & Millichap ...... 17 rience an urban environment. tion, “Fakes, Forgeries and Mys- Maxi Container ...... 18 That’s the kind of thing that pays teries,” which opens Nov. 21 and Michigan Chamber of Commerce ...... 31 dividends for decades to come.” continues through April 10. Michigan Department of Community Health ...... 23 Looking back on the park’s ear- “This is a way we can open up Michigan Department of Transportation ...... 15 ly planning, Ford said the idea was the museum and have people re- Michigan Education Association ...... 30 to leave a legacy after the fundrais- lax and get a sense of the enjoy- Michigan Manufacturers Association ...... 31 ing for Detroit’s 300th birthday — ment and thrill that’s involved in but the idea wasn’t always a park. Michigan Nonprofit Association ...... 16 this kind of activity,” said Direc- “We looked at a lot of alterna- Michigan Primary Care Consortium ...... 24 tor Graham Beal. tives, such as a Motown museum M1 Rail ...... 15 While forgeries were made or something in the Eastern Mar- Oakland Physician Network Services ...... 7 with the intent to deceive, fakes ket,” said Ford, great-grandson of Pennant Health Alliance ...... 33 are works of art that are thought Ford Motor Co. founder Henry Ford Physician Organization of Michigan ...... 33 to have been done by one artist and son of Henry Ford II. Plante Moran Financial Advisors ...... 4 but later were found to have been PSCU Holding Services ...... 1 See Park, Page 32 done by another. Often the artists Research Seminar in Quantitative Economics . . . . 32 of fakes are unknown, Beal said. “There’s nothing more inter- Salvation Army Eastern District of Michigan ...... 4 CAMPUS MARTIUS PARK esting than this kind of mystery,” Signature Associates ...... 17 Year built: Work on the park he said. Small Business Association of Michigan ...... 30 was completed Nov. 19, 2004 The DIA exhibit will pull back TRW Automotive ...... 11 Cost to build: $20 million the curtain on an aspect of muse- University of Michigan Hospitals and Health Centers 1 Size: 2.5 acres um operations seldom seen by the Award: The Placemaker Award public — constant reassessment dinner to honor Edsel Ford II and of artwork through research, sci- JOHN SOBCZAK Department index Detroit Institute of Arts Director Graham Beal shows a forgery from the Peter Karmanos Jr. will be Nov. 11 ence and technology like materi- museum’s upcoming exhibit. Painted between about 1880 and 1920, at 6 p.m. at the Westin Book als analysis and X-rays to see BANKRUPTCIES ...... 33 Cadillac “Portrait of a Young Woman” had been attributed at times to Leonardo da what other paintings might previ- Vinci and two other Italian Renaissance painters. BUSINESS DIARY ...... 10 Video: Listen to Edsel Ford ously have been done on a canvas. CALENDAR ...... 19 and Robert Gregory discuss “If you find zinc white in a The exhibition is designed to ditionally behaved, Beal said. CAPITOL BRIEFINGS...... 6 the impact Campus Martius Rembrandt, you know it can’t be demystify the museum and at- In the past, “If we got some- has had on the central CLASSIFIED ADS ...... 28 a Rembrandt because that color of tempt to move it away from a po- thing wrong, it was hurriedly put business district at KEITH CRAIN...... 8 crainsdetroit.com/video white wasn’t developed until two sition of absolute authority, centuries later,” Beal said. which is how museums have tra- See DIA, Page 32 LETTERS...... 8 MARY KRAMER ...... 9 OPINION ...... 8 Leveraging Michigan's talent Capitol Briefings OTHER VOICES ...... 8 Full coverage of the Crain's Job Creation Amy Lane's Blog: Snyder win, THIS WEEK @ PEOPLE ...... 28 and Workforce Development Conference Republican sweep -- mandate or WWW.CRAINSDETROIT.COM coming Wednesday, crainsdetroit.com mixed bag? crainsdetroit.com/lane RUMBLINGS ...... 34 WEEK ON THE WEB ...... 34 20101108-NEWS--0004-NAT-CCI-CD_-- 11/5/2010 5:32 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS November 8, 2010 Biz owners wait for possible tax changes before transferring assets to the family BY SHERRI WELCH of family-owned businesses, are CRAIN’S DETROIT BUSINESS also favorable for a transfer of as- Everyone is sets, Jinsky said. While current tax rules are fa- “ And there’s currently no genera- vorable for the transfer of business waiting to see what tion-skipping transfer tax for people assets to family members, many looking to transfer personal or busi- business owners are waiting to see Congress will do. ness assets to their grandchildren. if federal lawmakers make retroac- ” But clients are still waiting as tive tax changes before year’s end. Tom MacFarlane, Clark Hill PLC long as possible to transfer assets People are increasingly consider- for fear that legislators will make ing transferring a business interest This year, the federal gift tax rate retroactive changes such as rais- or other personal asset to the next on the transfer of assets from one ing the gift tax for this year or in- generation, but they are not ready family member to another is 35 per- stituting an estate tax or genera- to do it just yet, said Tom MacFar- cent, once the person passing on the tion-skipping transfer tax where lane, member and practice group assets exceeds the lifetime exemp- there hasn’t been one this year, leader for the personal legal ser- tion of $1 million in assets. Jinsky and MacFarlane said. vices practice group at Clark Hill PLC. Last year, the gift tax was 45 per- There is one area where rates “Everyone is waiting to see cent, and in January it’s scheduled are so favorable that clients are what Congress will do after the to increase to 55 percent. But Con- moving now, they said. elections — to see if they pass gress could either repeal the estate Several estate-planning tech- something retroactively before the tax all together, which is not very niques use an interest rate pub- end of the year.” likely, MacFarlane said, or it could lished by the Internal Revenue Ser- Clients are feeling better about raise the estate tax exemption. vice each month, called the where their business is today than There is no estate tax in place applicable federal rate. they have the past couple of years this year and therefore unlimited For October, the applicable fed- and are starting to signal more exemption. In January, the exemp- eral rate, which among other readiness to transfer those assets tion drops to $1 million from $3.5 things is tied to the minimum rate to family at the current lower val- million in 2009 and a top margin you must charge in an inter-family ues. That way, value appreciation tax rate of 55 percent. loan transaction, is at a nearly all- can happen in their son, daughter People are waiting to make plans time low, MacFarlane said. or other family member’s name, because of the uncertainty, MacFar- Congress could try to make re- said Dawn Jinsky, relationship lane said. If they act now, they may lated tax changes retroactively, in- manager and head of the estate- end up paying gift tax this year. But creasing the gift tax rate, reinstat- planning practice at Plante Moran if they had waited and Congress ing the estate tax and the Financial Advisors LLC in Southfield. raises the threshold for estates ex- generation-skipping tax for 2010. “Many of the clients that I am empt from estate tax, they may face Many people think retroactively meeting with are making plans to no gift tax at all, he said. reinstating the estate tax, raising transfer wealth, but many are hold- Low valuations for businesses, the gift tax and enacting the gener- ing off (on) actually pulling the trig- real estate and other assets that ation-skipping tax would be un- ger until Dec. 31 in the hope that we could reduce gift and other taxes, constitutional, MacFarlane said. get some additional certainty in the and low interest rates for financ- Sherri Welch: (313) 446-1694, law between now and then.” ing the next generation’s purchase [email protected] Salvation Army to build housing for homeless vets BY SHERRI WELCH Many veterans still suffer the tion of veterans currently serving, CRAIN’S DETROIT BUSINESS emotional trauma of war and have Baker said. post-traumatic stress disorder, “If you have a person in their The Salvation Army Eastern Michi- Turner said. early or late 20s, they are physical- gan Division plans to break ground “We need to do better as a coun- ly able to work but may come in the spring on two new buildings try for our veterans, and I think the home to metro Detroit area and to help meet rising demand for federal government is seeing that.” there may not be a job.” transitional housing for homeless The Salvation Army projects are Others are traumatized by what veterans in the metro Detroit area. among several the U.S. Department of they’ve gone through and need The Salvation Army is investing Veterans Affairs is helping to fund to mental health, medical or sub- $10.2 million to build the buildings meet the needs of an estimated 3,500 stance abuse treatment before in Clinton Township and Detroit, homeless veterans in the region. they can return to their families its new Monroe campus that will Over the past two years, the VA and to day-to-day jobs, she said. include transitional housing for has made grant commitments to- The Salvation Army plans to veterans and to add transitional taling more than $4.3 million to the open its new Monroe Harbor Light housing at two of its existing De- Salvation Army, Detroit Rescue Mis- Campus in December. The 60,000- troit shelters. sion Ministries and Emmanuel House square-foot, $4.6 million campus Those projects, which represent in Detroit, to add transitional will include 32 transitional-hous- the Salvation Army Eastern Michi- housing for 352 homeless vets. ing beds for vets, shelter beds, a gan Division’s first foray into tran- Additionally, the VA in 2008 detoxification program and other sitional housing for vets, will pro- made a $1.5 million grant to Volun- services. vide space for 94 teers of America Michigan to reno- It plans to break ground in the local veterans. vate a facility at Milwaukee and spring on a 9,000-square-foot, $1.4 The Salvation Brush streets in Detroit to provide million facility at its Clinton Army has pro- transitional housing for another 60 Township campus to provide tran- vided veterans vets, Baker said. All of the projects sitional housing for 30 veterans. with transition- under way will add transitional In Detroit, the Salvation Army al housing in housing and services for a total of has acquired another city block other parts of 412 homeless veterans adjacent to its Acres of Hope cam- the country, “There are more homeless vets pus, on Humboldt Street near Mar- said Maj. John now in Southeast Michigan than tin Luther King Boulevard and I- Turner, general Turner there have been in the past,” said 96. It purchased the land from secretary for the Beth Baker, liaison for the Grant owner Phil Tannian for $750,000, Eastern Michigan Division. and Per Diem program at the John D. Turner said. Through relationships with the Dingell VA Medical Center in Detroit. It plans to break ground in the VA, the Salvation Army learned The number of veterans that spring on a 20,000-square-foot there are more than 3,500 homeless have come to the local VA for as- building that will house 72 beds of veterans in the Detroit area and sistance has doubled this year, she transitional housing for vets, at a was encouraged to apply for grants said, without giving an exact total cost of $4 million, he said. to help provide them with transi- amount. Sherri Welch: (313) 446-1694, tional housing, he said. The U.S. has a younger genera- [email protected] DBpageAD.qxd 10/28/2010 2:56 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS November 8, 2010 On lame-duck wish list: School, road funding LANSING — Will the days. forfeiting the funds. ecutive vice president of the Michi- He said getting public and polit- lame-duck session be But that doesn’t mean Doug Pratt, director of public af- gan Infrastructure and Transportation ical support for a tax increase will lively or lame? Capitol wish lists aren’t being fairs for the Michigan Education As- Association. be challenging, and so other av- With the November Briefings drawn up. sociation, said “we’re going to be MITA is among groups in Lans- enues may need to be explored — elections behind, that’s And one item that pushing for action quickly on that. ing that have been seeking a long- like shifting the current sales tax the next big question in could in fact see action is The money is sitting in Lansing, term solution to Michigan’s road- that’s collected on gasoline and the Capitol. to revisit a formula for ready to get spent. The Legislature funding needs, through reforms other auto-related products — to And as of late last distributing $316 million just needs to spend it in accor- that include increases in Michi- provide revenue for transporta- week, it appeared the lat- in federal funds to school dance with the rules. gan’s gas and diesel fuel taxes and tion. ter might be more the districts. “And that needs to happen very, altering and raising vehicle regis- The challenge with that, case. The measure was very quickly, because school dis- tration fees. though, is pressures it puts on The Senate’s post- passed by lawmakers tricts are counting on that money “We are pushing for the next other areas of the budget that re- election session is ex- Amy Lane but vetoed by Gov. Jen- to come in the door.” best opportunity, and we see that ceive sales tax revenue, like edu- pected to be brief, and nifer Granholm after the Another issue is funding for in the lame duck,” Nystrom said. cation and revenue-sharing, Nys- House Speaker Andy Dillon, D- U.S. Department of Education indi- roads and bridges. But he also said they are looking trom said. Redford Township, would not cated the state allocation method Interest groups continue to push ahead to the new year and the new “But if we’re going to talk about comment on what the House could be inconsistent with federal for a comprehensive package of House, Senate and Snyder admin- shifting things and spending mon- might take up in its remaining law and could subject Michigan to legislation, said Mike Nystrom, ex- istration. ey more wisely, this certainly has to be part of the discussion,” he said. Nystrom also said that with the emergence of electric vehicles, altering registration fees needs to be considered because use of those vehicles will not produce gas-tax revenue. Another cause making its case on the heels of last week’s election was funding for the state’s Pure Michigan campaign. The Michigan Lodging and Tourism Association renewed its call for action in the lame-duck session. As Crain’s has reported, Pure Michigan winter advertising is in doubt and travel officials worry the key summer campaign could be in jeopardy. “The good news is the gover- nor and legislative leaders have announced support for additional funding for Pure Michigan ads. But the bad news is they disagree on the revenue source,” said Steve Yencich, president and CEO of the association, in a news release. “If they let Pure Michigan ads go dark by keeping the Yencich promotional budget at one of the lowest in the nation, they are effectively killing thousands of Michigan jobs and forgoing hundreds of millions of dollars in revenues for our state.” Also still in legislative limbo are bills, which include tax incentives, to move forward the “aero- A business is only as tropolis” economic development concept for land around Detroit healthy as its employees. Metropolitan Airport. And another item that could come up is legislation that would The HAP Health Engagement program will beneﬁt your business in three important allow liquor sales early on Sun- days and on Christmas. ways. First, it will help you save on health care costs. You’ll pay lower premiums. Granholm vetoed the bill be- Second, it will help your employees save on out-of-pocket costs. They’ll be happier. cause of other measures that were included in it. Third, healthier employees will help reduce absenteeism and increase productivity. However, one item that last Of course, your employees will also get the great coverage and beneﬁts you expect week had its fate sealed for this year is legislation needed to au- from HAP. Talk to your agent or call HAP toll-free at (800) HAP-PLUS today. thorize the proposed Detroit River International Crossing. Senate Majority Leader Mike Bishop, R-Rochester, said last week that the Senate will not take up the bills and that the issue hap.org/healthybusiness would wait for the next administration. Amy Lane: (517) 371-5355, [email protected] 20101108-NEWS--0007-NAT-CCI-CD_-- 11/5/2010 5:15 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 7 E-records help medical groups increase savings, study finds

BY JAY GREENE those who do not demonstrate process can be very cumbersome, CRAIN’S DETROIT BUSINESS “meaningful use” of electronic these data indicate that there are There are fewer readmissions, health records. financial benefits to practices that David Allard, M.D., chief med- “ Beginning in January, physi- implement an electronic medical ical information officer at Henry and that leads to less expense cians can apply for low-interest record system,” he said. Ford Health System in Detroit, said loans for electronic health record Practices that used electronic Henry Ford’s 22-year experience because you are not paying for a installation and begin to receive records for five years reported op- shows that using electronic health bonus Medicare payments if they erating margins 10.1 percent records improves efficiency and second episode of care. meet minimum federal require- greater than practices in their first quality and leads to higher profits. ” ments. year of having electronic systems, David Allard, M.D., Henry Ford Health System Rodger Prong, executive direc- Allard said the study could pro- the study found. tor with Waterford Township- which I believe is more cost effec- “This is money well spent for vide additional incentives for Over the next several months, based Oakland Physician Network tive and leads to more profitabili- the insurance company because physicians without electronic Henry Ford will add a variety of Services, a 400-member physician ty,” Allard said. “We have had an there are better outcomes,” he records to begin the process to pur- new components to its electronic organization, said most of the 40 EHR for inpatients and outpa- said. chase and install them. health record system, Allard said. physicians in the network who use tients since 1988 and will be rolling Allard said electronic health “It would be an incentive be- Using about $80 million in en- electronic health records and dis- out an updated system next year.” record systems also can improve cause it is close to the number of hanced Medicare payments, com- ease registries also have a positive For independent practices like efficiencies of hospitals and physi- $40,000 to $50,000 per physician to pliments of the federal American return on investment. Oakland Physician Network Ser- cian organizations. implement an EHR,” Allard said. Recovery and Reinvestment Act, It’s a conclusion now supported vices, the savings are even greater, “It tends to lead to reduction in “Outside of costs, the significant which allocates $20 billion in in- by a national study. the study said. duplicative care because everyone problem for smaller practices is centives for physicians who imple- The Medical Group Management MGMA found that independent is sharing the same data and same the time it takes to change. It re- ment electronic technology, Henry Association has found that medical medical practices had $49,916 records,” Allard said. “Specialists quires integration with your work Ford will use some of those funds practices that are part of hospital greater total medical revenue per order less labs and tests because flow, and it is hard to carve out to expand its system. systems like Henry Ford Medical full-time-equivalent physician af- the primary care physician or- that time.” “Our particular focus is to build Group reported $42,042 more total ter operating expenses than those dered them three months earlier.” Because of various barriers, just interoperability with other hospi- medical revenue per full-time- practices using traditional paper Allard said good patient data in 13 percent of physicians nationally tals, physician organizations and equivalent physician after operat- medical records. electronic health record systems have any type of automated pa- health information exchanges so ing expenses than those practices “Most of this (higher revenue) also makes it easier for physicians tient data in their offices and only we can use it as a collaborative using traditional paper medical has to do with the registry func- to “hand off” patients to other 4 percent have an electronic health tool to help physicians, nurses and records. tions. The data in there has to be ac- caregivers. record system, said a study last other providers practice as a While those practices incurred tive, not static like paper records,” “There are fewer readmissions, year in the New England Journal team,” Allard said. greater expenses, $105,591 per Prong said. “There are alerts to and that leads to less expense be- of Medicine. Highlights of the report, Elec- physician, they also generated prompt doctors to missing follow- cause you are not paying for a sec- “Adopting an electronic system tronic Health Records Impacts on greater revenue, $178,907 per up tests or preventive measures.” ond episode of care,” Allard said. can be costly and time consuming, Revenue, Costs, and Staffing: 2010 physician, than practices with pa- Because of the clinical service The MGMA study showing high- and understanding the impact it Report Based on 2009 Data, are per medical records, said the En- reminders, Prong said, the reg- er profitability is significant be- will have on the practice is criti- available on the MGMA’s website glewood, Colo.-based MGMA. istry sometimes increases the cause in 2015 Medicare will penal- cal,” said Bill Jessee, M.D., CEO of at www.mgma.org/ehr. “The use of EHRs certainly amount of billable services per pa- ize physicians by withholding MGMA. Jay Greene: (313) 446-0325, leads to more efficiency in care, tient visit. reimbursement increases for “While the implementation [email protected]

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Page 8 CRAIN’S DETROIT BUSINESS November 8, 2010 OPINION OTHER VOICES It’s time to put aside Finding our ‘new normal’ Just as we are getting still spends its time trying over the traumatic to obstruct the state-ap- JOB CREATION CONFERENCE Kwame Kilpatrick era, we pointed financial manag- Wayne State University’s Forum on learn that his computer’s er, while he now wants to Contemporary Issues in Society petty party politics hard drive has disap- hand back to state officials and Crain’s Detroit Business peared and two other the very same deficit they present Crain’s Job Creation and prominent self-confessed asked him to fix in the Workforce Development alue for money. felons claim they never first place. Go figure. Conference on Tuesday. For We’re going to hear that phrase a lot in coming admitted to anything. So the city is left to re- details, see Page 19. V weeks and months from Gov.-elect Rick Snyder. At the very moment capture its past glories Business leaders are buoyed by having a chief executive Mayor Dave Bing tried to through sports teams that clumsily into a prolonged obliv- reassure the public by ap- Irvin Reid often seem like the city it- ion? In the past three weeks, a tril- with job-creating experience, but Snyder has more than that. pointing his fourth police chief in self: old, tired and failing. Even its ogy of speakers at Wayne State He’s a certified public accoun- as many years, the city, its violent cultural icons are falling apart. University — Diane Ravitch, a his- tant, and his “value for mon- image, and its police became a na- The orchestra, one of the city’s last torian of American education; Ari- ey” mantra means he wants tional TV crime show. bastions of cultural excellence, has anna Huffington, the famous blog- to overhaul — not tinker with This cannot be Detroit’s “new signaled its apparent reluctance to ger and commentator; and normal.” survive by going out on strike at Joachim Chissano, the former — the way the state raises and The mayor sought to persuade the beginning of the season, leav- president of Mozambique — gave spends money. us to buy into his vision of a new, ing its ticket holders staring at some cogent insights into what we And as his office points leaner, more compact and manage- their palms. The DIA continues to are all about. out, he’ll use simple but radi- able city. At the same time, a coali- try to cope, although it has had to Ravitch addressed education in cal criteria to evaluate policy tion of private, corporate and foun- lay off more than 20 percent of its this city and spoke against both dation players envisioned the workforce in the past two years. mayoral control and the tendency wish lists: Does it benefit all mayor as leader of the city’s school Our opera company struggles on to blame the unions for everything people in Michigan? Who is system. Those dreams now seem to under the passionate leadership of wrong. For her, the new normal the best person from the op- be gone as political reality sets in; an idealistic director. for Detroit is a return to a funda- posing viewpoint to provide a the people apparently did not want One can only ask if this is De- counterpoint? any of this. Yet, the school board troit’s new normal: stumbling See Voices, Page 9 In other words, he’s not beholden to sacred cows. At 8.8 percent, Ann Arbor has the lowest unemploy- GLENN TRIEST ment rate in Michigan — and LETTERS Then-candidate Rick Snyder talks to it’s lower than the national the Crain’s editorial board before winning the gubernatorial election last average of 9.6 percent. (See Tuesday. story, Page 1.) The jobless Ideas for Gov.-elect Snyder rate for Detroit, Warren and Livonia, a statistical area the data crunchers use, is 13.4 per- Editor: haps, Crain’s Detroit Business Crain’s Detroit Business Michigan’s Gov.-elect Rick Sny- could be a significant facilitator cent. welcomes letters to the editor. der, once he is sworn in, should for such an effort. So maybe the rest of Michigan will get a chance to see what All letters will be considered for move swiftly in considering the Joe Neussendorfer Ann Arbor is doing right, because Snyder said he plans to con- publication, provided they are following initiatives: Livonia tinue to live in his own home in Ann Arbor while serving as Ⅲ signed and do not defame His administration should individuals or organizations. Michigan’s CEO over the next four years. reach out to the new Republican Letters may be edited for length Snyder picks winners Having a world-class university like the University of governors in Ohio and Pennsylva- and clarity. nia to create a joint summit to ad- Editor: Michigan helps, of course, but in launching the nonprofit busi- Write: Editor, Crain’s Detroit dress the dying manufacturing In hockey, a hat trick means ness support group Ann Arbor SPARK, Snyder pulled UM, Business, 1155 Gratiot Ave., base in their states to see how they achieving a positive feat three Detroit, MI 48207-2997. Eastern Michigan University and officials from Ann Arbor, could work together to attract times during a game. It is a mo- Ypsilanti and Washtenaw County into a collaboration that put growth to their region and not E-mail: [email protected] ment for cheering and exuberance. local rivalries aside and focused instead on adding jobs by have senseless competition With Gov.-elect Rick Snyder’s ap- growing local companies. against one another. motes growth in manufacturing, pointment of Doug Rothwell, Mark Ⅲ Call a governors’ summit to technology and new energy-green Murray and Sharon Rothwell to The same formula may work for Michigan. bring all of the states’ regional and initiatives, much like SEMCOG’s his transition team, he has not Business can support Snyder in many ways, but one big local chambers of commerce to- great and underutilized “Sustain- only scored a hat trick but has ele- way is to use its influence with state and local officials to drop gether to see how they can address able Communities” program. vated the level of government per- partisan sniping. the states’ total economic situation Ⅲ Create a governors’ summit formance to new heights. Michigan has a lot of problems — more than $1 billion in a instead of each promoting their on local government and business As far as I am concerned, the own regional interests. community innovation forum, to lights were just turned on again in projected deficit, for starters. Ⅲ Create a governors’ task force help local governments create new our state. Let the cheering begin. This is not the time to play politics. It’s time to save our on economic and environmental co- ways of thinking about their bud- Bill Kalmar state and create a more successful future. operation that encourages and pro- gets and financial planning. Per- Lake Orion

KEITH CRAIN: Thank goodness there are 60 days Our new governor-elect, Rick fer him assistance and who share his views. the workings of government. even for the most strongly philo- Snyder, has just a few days to get loan him executives for I would strongly rec- When Snyder puts our house in sophical Democrats. Let’s hope his startup running. perhaps as long as a ommend a quick trip to order, he’ll discover there’s a lot of that a lot of qualified business ex- Luckily for his new constituents, year. But most Michi- Indiana to have lunch rot and mold. ecutives will be attracted by the this is not his first startup, but it gan companies don’t with Gov. Mitch Someone said during the cam- new environment of a Snyder ad- has to be his biggest and certainly have any excess person- Daniels, who has done paign that business and govern- ministration in Lansing and are the toughest. And actually, it’s not a nel they can ship out for nothing short of a spec- ment aren’t the same. Well, they willing to give some time to help- startup; it’s a fix-up. He’s gotten that long. tacular job in turning may be technically correct, but the ing make Michigan a better place. himself in charge of a mess as CEO, He might be able to tap around our southern ability to run a business and man- All of us, regardless of race, ge- and he’s going to have to use all his into the state’s business neighbor. It would be age people is the same. ography or political persuasion, business acumen to get his hands schools for some profes- time very well spent. The state has a large number of have to be rooting and supporting around his new job. sorial talent that could I think we will all be departments or divisions and an our newly elected governor. I know that we all wish him the assist his new adminis- pleasantly surprised at even larger board of directors. It’s going to be interesting to best. I hope that there are plenty of tration, although I don’t know how rapidly our newly elected gov- It is in all of our best interests to watch a businessman take over the companies in this state that will of- whether there are any educators ernor will be able to get a grasp of see Snyder succeed. That’s true state of Michigan. 20101108-NEWS--0009-NAT-CCI-CD_-- 11/5/2010 1:42 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Biz to politicos: Stop fighting, act like a region Gov.-elect Rick Snyder has said business-led Allegheny lined the strategy of us- business executives sit on the side- organized labor and the racial con- Michigan can’t succeed without a Conference. ing private money as lines. In Grand Rapids, Huntington flict in Detroit. successful Detroit. Meanwhile, the week seed capital for major Bank’s Jim Dunlap reported, lead- Whatever Snyder’s strategy is for But Detroit can’t succeed with- before the Nov. 2 elec- investments in projects ers collectively refuse to make polit- helping cities like Detroit, he’ll out business investment and CEO- tion, Crain’s hosted a that supported a ical donations to candidates who need business support. Executives level engagement, either. And remarkably candid con- stronger economy, don’t support the business agenda. should be lining up to volunteer to stuck with a region that has an im- versation among CEOs such as an expanded By contrast, Southeast Michi- help. The whole region — and the poverished core city that competes from the Grand Rapids convention center — gan has never really dealt with the state — can’t afford to squander an with other local and county gov- area and Southeast and without a lot of argu- elephant in the room — race, Wal- opportunity to help Snyder and De- ernments for economic crumbs, mid-Michigan. ment over who would bridge CEO John Rakolta said at troit Mayor Dave Bing reinvent De- business leaders are looking out- This “east meets run the center or issue the forum. troit and help reshape the region. side metro Detroit for inspiration. west” event was possi- the contracts. And business is treated like a The Detroit Regional Chamber, ble because of help If area political lead- pariah, added ITC Holdings Inc. Mary Kramer is publisher of for example, led a group to Pitts- from the Detroit cham- ers keep fighting in pub- CEO Joseph Welch, with a kind of Crain's Detroit Business. Catch her burgh in late October to learn first- ber and the Grand Rapids Area lic and private, we’ll continue to “animosity” toward business — take on business news at 6:10 a.m. hand of that city’s 30-year journey Chamber of Commerce and the De- have a largely dysfunctional region which is the key to job creation. Mondays on the Paul W. Smith show to build a new “eds and meds” troit Regional Chamber. that won’t be competitive on a na- The east-west cultural differ- on WJR AM 760 and in her blog at economy on the rubble of the col- Dick DeVos, a co-founder of that tional or global stage. And we can’t ences in Michigan are shaped by www.crainsdetroit.com/kramer. lapsing steel industry. Higher edu- city’s Grand Action Group, out- influence those elected leaders if history, including the history of E-mail her at [email protected]. cation, health care delivery and research have led the city’s resurgence, but the transformation fell under the umbrella of the

VOICES CONTINUED ■ From Page 8 mental foundation of public education. In other words, the new normal is the old curriculum. Fix it and public education will again excel. She, of course, as assistant secretary of education in the Bush administration, was partly responsi- ble for the very programs she now rails against. She was once an ad- vocate of choice, charters and testing, but now is against all three. Her defense? The research results are different now. Again, go figure. Huffington saw our problem fundamentally as the disappear- ance of the American middle class, which she says is as endangered as the Edsel. She sees this phenome- non as accelerating our decline into what she calls “Third World America,” which happens to be the title of her new book. As vividly as Ravitch, Huffington writes as though she is speaking of Detroit. She points out the obvious: that our industrial base is vanish- ing and with it the jobs that kept it alive; our infrastructure is decay- ing; our economic system is erratic and episodic, going from one crisis to the next; and our political system is hopelessly broken. If these are her criteria, we are there. Her mes- sage was we should rebuild the middle class, and thereby avoid joining the Third World. Perhaps the visitor with the most cogent counsel for Detroit was Chissano, the former president of a Third World country. He spoke about rebuilding his country after years of struggling for its new normal. “A lot remains to be done,” he said. “Further civic education of the people, training of personnel, setting up of technically capable institutions and securing financial and material capacity are some of the challenges. … The electoral process is still depending on external resources, sometimes opening up to undesirable conditions.” Sound familiar, Lansing? Chissano also said what may be the most important thing for us to remember in any discussion of De- troit’s future: “Listen to the people.” Irvin Reid is former president, dis- tinguished professor and inaugural holder of the Eugene Applebaum Chair in Community Engagement at Wayne State University. 20101108-NEWS--0010-NAT-CCI-CD_-- 11/5/2010 10:35 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS November 8, 2010

BUSINESS DIARY CONTRACTS search, staffing and consulting compa- using HyperWorks computer-aided nationwide. InTouch Health, Santa Barbara, Calif., ny. Also, Levanto has named Trusted engineering tools for the design and a robotics technology company, chose Azure Dynamics Corp., Oak Park, and The U.S. Army TACOM Life Cycle Com- ID, Redwood City, Calif., an online , Pittsfield Ford Motor Co., Dearborn, announced optimization of its Nascar Sprint Cup mand, Warren, has awarded General Valley Ranch Business Park identity-protection company, as an that New York Power Authority, White race cars. Altair has also added Ram- Dynamics Land Systems, Sterling Township, to locate a research and de- identity-protection partner. Plains, N.Y., has been added to the sis, the occupant simulation software Heights, a subsidiary of General Dy- velopment operation. Ann Arbor Spark LEAD customer program for the Ford Western Creative Inc., Redford Town- by Human Solutions, Troy, to its Hy- namics, Falls Church, Va., a contract provided site selection and talent re- Transit Connect Electric van. ship, has been selected by Living Assis- perWorks Partner Alliance. to provide U.S. Marine Corps light ar- cruitment support to InTouch Health. Con-way Freight, Ann Arbor, a freight tance Services, Havertown, Pa., to de- United Solar Ovonic LLC, Rochester mored vehicles with self-sealing fuel Innovative Learning Group Inc., Royal transportation company, has signed a velop an Internet marketing Hills, a subsidiary of Energy Conver- tanks. Oak, has expanded its corporate head- contract with AT&T, Dallas, to provide campaign for its private-duty senior sion Devices Inc., Rochester Hills, in- Qualitech, Bingham Farms, a technol- quarters from 2,600 square feet to 4,000 support for its operations. home care franchise, Visiting Angels. stalled Uni-Solar modules on five city- ogy integrator and software reseller, square feet at 514 E. Fourth St. Web- Gregory J. Schwartz and Co. Inc., Western Creative also has entered owned properties and two schools in was selected by Depadua Construction site: www.innovativelg.com. Bloomfield Hills, an investment advi- into an agreement with Puricle Inc., Greenville. United Solar also has re- LLC, Birmingham, to install a new In- Beaumont Hospital, Royal Oak, sory firm, has been retained by Hen- Irvine, Calif., to be its representative. leased PowerTilt and PowerShingle, tel Exchange server. opened its new Ernst Cardiovascular niges Automotive, Farmington Hills, Altair Engineering Inc., Troy, a global solar rooftop products. Center. Telephone: (248) 898-3839. as investment counselor to its defined software company, announced PBS GuidePoint Systems, Madison EXPANSIONS TRW Steering Systems Slovakia s.r.o., benefit and defined contribution re- Professional was selected by NEC Heights, a telematics supplier, has InStar Services Group, Troy, a disaster Nove Mesto, Slovakia, a subsidiary of tirement plans. Corp., Tokyo, Japan, as the workload been selected by Nissan North Ameri- restoration and reconstruction firm, TRW Automotive Holdings Corp., Livo- Levanto Financial, Troy, was named management tool for Tsubame 2.0. Al- ca Inc., Smyrna, Tenn., to supply its has opened locations at 605 W. Main nia, announced plans to expand its employee financial wellness provider tair also announced that Richard Chil- GPS-based vehicle tracking and re- St., Centralia, Wash., and at 420 Apollo Nove Mesto nad Vahom plant to sup- for Venator, Troy, an executive dress Racing, Welcome, N.C., is now covery system to Nissan dealerships St., Unit C, Brea, Calif. port the growth of TRW’s electrically powered steering systems business. MOVES Identity PR, a marketing and public relations firm, from 30700 Telegraph Road, Suite 3450, to Suite 1475, Bing- ham Farms. Telephone: (248) 258-2333. Website: www.identitypr.com. Graphic Sciences, a business process services provider, from Royal Oak to 1551 E. Lincoln, Madison Heights. Telephone: (800) 397-6620. NEW PRODUCTS Acromag, Wixom, released a new industrial-grade USB isolator to prevent equipment damage to connected USB devices. Website: www.acromag.com. Federal-Mogul Corp., Southfield, has introduced a next-generation Monosteel piston to improve fuel economy and reduce emissions for heavy-duty vehicles. Website: www.federalmogul.com. ZipLogix, Fraser, released its zipForm Mobile Web Edition product. Website: www.ziplogix.com. Thomson Reuters, Ann Arbor, a global provider of information for health care professionals, has released the newest version of its Clinical Xpert Navigator mobile clinical data application. Website: clinicalxpert.com/ iphone. NEW SERVICES KDN Videoworks Inc., Madison Heights, now offers high-definition fiber video feeds used by broadcast and cable networks for live interviews. Website: www.kdnvideo.com. Domino’s Pizza Inc., Ann Arbor, has given its Pizza Tracker tool an audito- ry upgrade, allowing the user to hear It was the economy their order being made with six themes to choose from. Website: www.dominos.com. that slowed, National Center for Dispute Settle- ment, Clinton Township, a dispute prevention and resolution training not your ambitions. company, has launched an online training curriculum at www.adrtrain- ingsolutions.com. STARTUPS What’s In Store, a home furnishings resale shop; and Katy’s Kloset, a women’s fashion resale shop, both at 27253 W. Seven Mile Road, Redford Township. Website: www.whatsin- store.com or www.facebook.com/ Now’s the time to reinvest in your business. katyskloset. The Small Business Jobs and Credit Act gives you a new opportunity to jump-start your business’ growth. Whether it’s buying new equipment, improving your working capital or reinforcing your DIARY GUIDELINES overall ﬁnances, Fifth Third Business Bankers can help you take advantage of this new opportunity Send news releases for Business Diary to Departments, Crain’s to reinvest in your business. Stop in your local Fifth Third Bank, call 1-877-833-6205, or visit 53.com, Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or and let’s get your business moving. send e-mail to cdbdepartments@ crain.com. Use any Business Diary item as a model for your release, and look for the appropriate Loans subject to credit review and approval. Fifth Third and Fifth Third Bank are registered service marks of Fifth Third Bancorp. Fifth Third Bank. Member FDIC. category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 20101108-NEWS--0011-NAT-CCI-CD_-- 11/5/2010 12:38 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 11 Economy 2011 Getting down

ISTOCKPHOTO.COM to the core Deals loom as suppliers pare away what they don’t need

BY DUSTIN WALSH pyrotechnic safety switch business But the company is taking steps to PRTM. CRAIN’S DETROIT BUSINESS and its South Korean business seg- right the ship by expanding into Eu- Asian companies are the most active ment, giving AutoLiv a wider pres- rope and selling its insolvent passenger in the supplier M&A deals etroit is no longer on the redlined ence in an emerging market. Both car segments, as well as reinvesting in over the past few years, with list when it comes to international deals closed for an undisclosed sum its truck components business. the region’s M&A market D automotive suppliers looking for earlier this year. Last year, ArvinMeritor sold its growing 20 percent in 2009 ways to diversify. And Maia, Portugal-based Sodecia wheel-making segment to Sao Paulo, alone, according to an August While a return to the late-1990s pace S.A. acquired Warren-based AZ Automo- Brazil-based Iochpe-Maxion SA in a $169 study by N.Y.-based Thompson of frequent mergers and acquisitions is tive Corp. in March for an undisclosed million deal. Financial. not expected anytime soon, a steady sum. The acquisition gives Sodecia a In September, ArvinMeritor an- However, Chinese compa- streak of divestures from presence in the North American mar- nounced a $42 million investment in its nies looking to expand into BUY AND SELL Detroit suppliers is expect- ket. German brake manufacturing unit. North America have slowed ed to occur over the next 18 In the coming It also continues to purge its passen- their acquisitions as the mar- Eisenberg Big deals: months, especially to in- year, suppliers that ger car segment — most recently, the ket has recovered, said Scott Selected sales ternational suitors. struggled through $35 million sale of its body systems Eisenberg, managing director of Birm- and acquisitions Deal traction is expected the economic down- business to Troy-based Inteva Products ingham-based Amherst Partners LLC. involving local suppliers, to heat up in the coming turn and are looking LLC, which was for- “Many of the Page 12 months as suppliers look to refocus on core merly Delphi’s inte- Chinese compa- to dump non-core seg- products are expect- riors unit. Global consolidation nies that we OPPORTUNITY ments, boost profits and ed to sell more busi- Ostermann said “ have spoken to vie for global market ness units, said Diet- not to rule out is giving the tier and worked with On watch: share. mar Ostermann, a merger deal have focused on Healthy suppliers Several large divesti- director of the auto- that will al- looking at dis- Ostermann look overseas, tures involving Southeast motive practice at low the com- ones an tressed opportu- Page 13 Michigan suppliers oc- Waltham, Mass.-based management pany to ex- advantage by nities,” he said. curred in the past 18 consulting firm PRTM. pand globally. “As the auto months, and more are coming. Nan- “A tie-in being able to buy markets have terre, France-based Faurecia completed Business units on the block with a compa- stabilized over a $323 million acquisition of Troy- ny that could instead of grow the past year, based Emcon Technologies LLC, a maker Troy-based Delphi, Livonia-based help them ex- there are fewer of emissions-control systems, in Febru- TRW Automotive and Troy-based Arvin- pand is possi- organically. distressed auto ary. The supplier, with its North Amer- Meritor Inc. are likely to be among the ble,” he said. “Indi- ” suppliers on the ican headquarters in Auburn Hills, suppliers selling portions of their busi- an companies are Aleks Miziolek, market.” forecasts 7 percent annual revenue nesses in the next 18 months, Oster- very strong in that Dykema Gossett PLLC But cash-rich growth for the next decade thanks to mann said. sector and could Chinese compa- the deal. ArvinMeritor remains a distressed show interest.” nies or Paris-based Valeo may have an Stockholm, Sweden-based AutoLiv supplier due to its primarily North Suppliers outside North America interest in going after Delphi’s thermal Inc., in two separate deals, acquired as- American business operations with a and Europe will do about 52 percent of systems business segment, Ostermann sets from Delphi Automotive LLP, post high-cost manufacturing base, accord- the buying this year, compared with 25 bankruptcy, including its European ing to PRTM. percent in 2000 and 2001, according to See Deals, Page 12

THE OUTLOOK Lending Transportation Nonprofits Real estate Manufacturing Commercial lending Woodward rail plans It’s time for nonprofit Expect good news for Auto suppliers still should increase modestly, move along in study leaders to get tenants and buyers with jittery over downturn but “it’s still going to be a phase; regional transit acquainted with cash, bad news for cautiously add capacity tough environment for plan remains elusive, incoming state landlords and investors to ride a recovery, borrowers,” Page 14 Page 15 legislators, Page 16 trying to refinance, Page 17 Page 18 20101108-NEWS--0012,0013-NAT-CCI-CD_-- 11/5/2010 12:41 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS November 8, 2010 Economy 2011

BUYING AND SELLING Selected higher-profile deals involving local suppliers and units from the past 18 months: Sales Buyer Target Value Closed AutoLiv Inc., Stockholm, Sweden Delphi Automotive LLP pyrotechnic N/A April safety-switch assets in Europe, a unit of Troy-based Delphi AutoLiv Inc., Stockholm, Sweden Delphi’s South Korean business segment N/A March General Motors Co. Delphi’s steering segment (Nexteer $1.1B 2009 Automotive) HHI Holdings Inc., New York Assets of FormTech Industries LLC. Royal Oak $50M 2009 iSi Automotive GmbH, Vienna, Austria Delphi’s European airbag segment N/A 2009 Lenders including J.P. Morgan Delphi Corp., Troy $3.5B 2009 Chase, Elliott Management Corp. Your company MD Investors Corp., New York Metaldyne Corp., Plymouth $497.5M 2009 is a great place to work. OM Group Inc., Cleveland EaglePicher Technologies LLC, a unit of $201M 2009 EaglePicher Corp., Dearborn We’d like to reward you for that. Patriarch Partners LLC, New York Dura Automotive Systems Inc., $130M January Rochester Hills There’s good news for great companies. The AARP Best Employers for The Renco Group Inc., New York Body systems segment of ArvinMeritor $35M Pending Workers Over 50 program is now accepting applications for businesses Inc., Troy that practice and support policies that meet the needs of the nation’s Revstone Industries LLC, Southfield Chassis segment, Metaldyne Corp., Plymouth N/A 2009 changing workforce. Shaffner Manufacturing Co. Inc., Pittsburgh Belanger Abrasives Inc., Northville N/A 2009 For 10 years, this award has been helping employers set the gold Sodecia S.A., Maia, Portugal AZ Automotive Corp., Warren N/A March standard for today’s multigenerational workforce. They recognize their Standard Motor Products Inc., Wire and cable segment of Federal-Mogul N/A 2009 diverse workplace needs and have established policies and practices Long Island City, N.Y. Corp., Southfield with a focus on workplace accommodations, flexible work options and ongoing training opportunities. Acquisitions Amerigon Inc., Northville ZT Plus, Asuza, Calif., a unit of 5N Plus $1.5M March To nominate your company for this prestigious award, visit Inc., Quebec aarp.org/bestemployers. Deadline for entries is Feb. 9, 2011. BorgWarner Inc., Auburn Hills Dytech ENSA SL, Vigo, Spain, a unit of $147.6M April Dytech Dynamic Fluid Tehnologies, Italy 2011 Energy 1 Corp., Southfield Vortex IP Inc., Boca Raton, Fla. N/A April General Motors Co., Detroit Minority stake in Delphi Corp., Troy $1.7B 2009 0 Y E A R S C E L E B R AT I N G 1 International Automotive Components, Stankiewicz International Corp., N/A February North America, Dearborn Spartanburg, S.C. Key Plastics LLC, Northville Assets from insolvent OLHO GmbH, Janovice, N/A April Czech Republic, and Lohne, Germany Key Plastics LLC, Northville Sarnatech Paulmann & Crone GmbH, N/A April Lüdenscheid, Germany NJT Enterprises LLC, Sterling Heights Atlantic Automotive Components LLC $3.1M January of Benton Harbor, a unit of Visteon Corp. Old Carco LLC, Auburn Hills Global Engine Manufacturing Alliance N/A 2009 LLC, Auburn Hills, a unit of Hyundai Motors Begin your own tradition. and Mitsubishi Motors Sources: Crain’s research, Amherst Partners LLC, Bloomberg Deals: Suppliers narrow their focus ■ From Page 11 said. American divestitures, Roesler TRW, which is 30 percent owned said. by private-equity firm Blackstone I would say small Deals by financial buyers in- Group, may sell or split into two “ creased in the first half of 2010 to separate entities, one focused on tier-twos will be 33 deals from 18 deals during the occupant safety systems and the same period in 2009. other on brakes, Ostermann said. acquired or “With the worst of the economic “A deal here would be spurred and credit crisis behind them, fi- by Blackstone wanting to get out,” merged. nancial buyers are likely to show he said. “They’ve been with TRW ” renewed interest in the automo- Cliff Roesler, Angle Advisors- for eight years now, they want to tive deal market,” he said. Investment Banking LLC close out the account.” Recent U.S. automotive research from PricewaterhouseCoopers ican capacity and acquiring facili- points to larger deals closing in Expanding international markets ties overseas, tier-two suppliers 2011. Common global vehicle plat- will have to pay to play by either For example, Cerberus Capital expanding globally or being forced Management LP, which bought Nautilus forms are steering suppliers to ex- Livonia-based Tower Automotive in Ref. 5712/1A pand their reach across the globe. into an acquisition, or drop to tier- “The global consolidation is giv- three status, said Cliff Roesler, 2007 for an estimated $1 billion and ing the tier ones an advantage by managing director of Birming- lost its stake in Chrysler LLC when being able to buy instead of grow ham-based Angle Advisors-Invest- the company was in bankruptcy organically,” said Aleks Miziolek, ment Banking LLC. last year, also is expected to make director of the automotive group of “A few will be crushed in the acquisitions. Detroit-based Dykema Gossett PLLC. process, but I would say small tier- “Investors see automotive has “Now is a great time, because of twos will be acquired or merged,” hit bottom and starting to re- pricing, to take a hard look at com- he said. This allows larger tier-one bound,” Roesler said. “There will petitors (and) whether they can and tier-two companies to grow be ample opportunities to ride the provide them that next global and expand regionally and inter- regrowth of the North American nexus.” nationally. auto industry.” As the major tier-one suppliers Strategic and financial buyers Dustin Walsh: (313) 446-6042, shuffle assets, selling North Amer- will stay interested in North [email protected] 20101108-NEWS--0012,0013-NAT-CCI-CD_-- 11/5/2010 11:59 AM Page 2

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 13 Economy 2011 Healthy suppliers on watch for growth opportunities overseas

BY DUSTIN WALSH ting $34.3 billion. JCI also said it want to overextend expenditures. CRAIN’S DETROIT BUSINESS has intentions to make $1.2 bil- “If you survived the downturn, lion in capital investments in the it’s a pretty good time to be a sup- Strategic acquisitions are also next year. plier,” he said. on the radar of Midwest-based JCI executives told investors at These suppliers are eager to get suppliers hunting for global mar- a September conference in New into the China market as well, ket share in 2011. York City that it plans to boost said Scott Eisenberg, managing Global new vehicle sales may capital spending as it penetrates partner at Birmingham-based rise to an all-time high of nearly faster-growing markets like Chi- Amherst Partners LLC. 68 million this year, according to na, Brazil and the Middle East. “The North American suppliers forecasting by Northville-based JCI received 42 percent of its have been very aggressive about CSM Worldwide Inc. That number $28.5 billion in revenue in its fis- increasing their presence in the is expected to expand further next cal 2009 from its auto parts unit, China market,” he said. “China is year. which makes seats and instru- a very profitable and strong mar- Demand in Europe and China ment panels. ket with substantial growth op- continues to rise, with sales fore- “During the downturn, we saw portunities yet to come.” cast to eclipse 17.7 million in Eu- suppliers absolutely slash their Delphi Automotive LLP, which rope and 13.7 million in China cost structures,” said Mike Wall, has righted its financial books this year. Both are expected to director of global financial ser- through strategic divestitures, surpass 20 million units in the vices and automotive industry an- has been on the hunt for an acqui- next five years. alyst for Grand Rapids-based IHS sition, CEO Rodney O’Neal told Increased demand, along with Inc. “Now, with this radically re- reporters in April. healthier cash reserves, will spur shaped footprint, they are practi- Dean Harden, managing direc- strategic acquisitions by suppli- cally printing money and they tor of Angle Advisors’ operations ers looking to strengthen their want to keep doing that. I’d expect in Shanghai, China, said China’s businesses, industry profession- very strategic acquisitions.” growing demand is offering ac- als say. The reduced costs and reduced quisition opportunities for strong Suppliers like Auburn Hills- market share for most suppliers suppliers. based BorgWarner Inc., Glendale, is now providing an optimal time “Global suppliers are well-es- Wis.-based Johnson Controls Inc. for healthy suppliers to grow, tablished in North America and and Cleveland-based Eaton Corp. said Aleks Miziolek, director of Europe, but not in Asia,” he said. have turned record profits during the automotive group at Detroit- “They want to build up their the past few quarters and are pre- based law firm Dykema Gossett Asian segment to be full one-third pared to make acquisitions in LLP. contributors, and they will con- emerging markets. JCI’s automo- “Now is a great time, because of tinue to pursue opportunities tive seating systems, interiors pricing, to take a hard look at now and in the future.” and electronics business segment competitors whether they can Dustin Walsh: (313) 446-6042, is in Plymouth; Eaton’s automo- provide them [email protected] tive research and development that next global center is in Marshall. nexus,” she In April, Auburn Hills-based said. “This is BorgWarner Inc. completed its ac- really giving quisition of Vigo, Spain-based ex- them an advan- haust supplier Dytech ENSA SL, tage, because which generated $180 million in they can buy in- revenue in 2009. The value of the stead of organi- deal was $147.6 million. cally grow.” JCI announced it was acquiring Cliff Roesler, Roesler French supplier Michel Thierry managing direc- Group in October, expanding its tor of Birmingham-based Angle global reach. Advisors-Investment Banking LLC, JCI’s revenue this fiscal year said the deals will be much small- topped analysts’ predictions, hit- er as profitable suppliers don’t

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Page 14 CRAIN’S DETROIT BUSINESS November 8, 2010 Economy 2011 Commercial lending outlook improves

BY TOM HENDERSON away from real CRAIN’S DETROIT BUSINESS estate, but it’s LENDING still going to be a Expect larger regional banks and Commercial lending should in- tough environ- crease modestly in Southeast newer community banks with few ment for borrow- bad loans on their books to Michigan during 2011, but credit ers.” increase lending. standards will remain tight and As banks cut Auto suppliers will find a warmer money will still be hard to come by customers loose reception from bankers than they for many companies looking to during the re- got a year or two ago. “Given the fund post-recession growth. cession, asset- restructuring that went on in the Many local banks, particularly auto supply industry at both the Tull based lenders community banks still struggling like Crestmark OEM and supplier level, the industry with nonperforming loans, will fo- and Huntington Woods-based Hen- is quite healthy today,” said Michael Ritchie, an executive vice president cus on increasing capital-to-asset nessey Capital LLC saw record deal at Comerica Bank. ratios instead of growing loan volumes. Asset-based lenders will port- folios. Crestmark had $128 million in continue to thrive. “The loan environment will be new loan originations through Credit unions will continue to set very bank-specific,” said W. David September, compared to $67.5 mil- Tull, president and CEO at Troy- records for commercial lending, a lion for all of 2009. It had $2.5 mil- niche they once tended to ignore. based Crestmark Bank, an asset- lion in net income last year and Mergers and acquisitions of based lender. “Banks in better was at $4 million at the end of the shape will be looking to commercial companies with more than third quarter. $250 million in revenue and strong and industrial loans to diversify Hennessey President Michael Se- balance sheets will find bank manco said his firm’s loan origina- financing easier to come by. But tions this year should hit deals involving companies with $15 million and match 2009’s record. revenue of less than $100 million He said things could ease slight- will need to seek mezzanine lenders ly for his firm in 2011. As banks in- who focus on subordinated debt. crease lending, some customers man, president and CEO. will go back to cheaper bank fi- Provost said the goal is to make nancing, but it won’t mean a del- $25 million a month in loans in uge of departures, he said. 2011. The bank did $15 million in Semanco said one big gap that loans in September for a nine- should remain is second-stage month 2010 total of $105 million. companies needing growth capital. Novi-based Lotus Bank President “That’s a huge opportunity for us.” and CEO Neal Searle said he pro- While the region has more than jects doubling commercial loan its share of struggling community origination next year to $30 million; banks — six of them didn’t meet a it could go as high as $40 million. common threshold for being consid- Among the larger regional ered adequately funded, according banks, Huntington Bank has added to quarterly reports filed with the 28 commercial and small-business Federal Deposit Insurance Corp. at the lenders in the eastern Michigan re- end of October — several communi- gion in the last year, according to ty banks that were founded recently Brian Marshall, senior vice presi- have little bad debt on their books dent and commercial region man- and have money to lend. ager. Through the third quarter, Troy-based First Michigan Bank is the bank grew small-business increasing lending, thanks to an lending in the region by 57 percent influx of $200 million in capital to $45 million. early this year and the acquisition Troy-based Flagstar Bank has of the 22 branches in April of Port hired 12 commercial lenders, will Huron-based Citizens First Bank af- hire about 12 more in the coming ter it was shut down by regulators. year, and plans to grow commer- The bank has hired 10 senior cial lending from less than $50 mil- commercial lenders and five credit lion this year to “north of $100 mil- analysts since May, and it is hop- lion next year, said President and ing to hire 25 more commercial CEO Joseph Campanelli. lenders in the next six months, ac- Tom Henderson: (313) 446-0337, cording to David Provost, chair- [email protected]

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November 8, 2010 CRAIN’S DETROIT BUSINESS Page 15 Economy 2011 Woodward light rail stays on track

BY BILL SHEA CRAIN’S DETROIT BUSINESS

The next year will be consumed with required environmental studies for metro Detroit’s highest-profile mass transit plan: a light rail line on Woodward Avenue. U.S. Transportation Secretary Ray LaHood announced on Aug. 2 that the Woodward project has been approved to begin the environmental study required for eventual federal funding. New York City-based engineering firm Parsons Brinckerhoff has been hired to manage the environmental impact study process for the city. The firm has a Detroit office. After the 12- to 18-month study, construction would begin in late 2011 or early 2012, and the line COURTESY OF CITY OF DETROIT An artist’s rendering shows one vision for light rail on Woodward Avenue. would be completely operational by 2016. The line, which is being built in TRANSPORTATION part by the city and a consortium of private investors, would run The Southeast Michigan Council of Governments, which programs from Hart Plaza to Eight Mile federal transit dollars for long-term Road. planning, is seeking $10.5 million Extending the line to 11 Mile in federal funding, with a PPO HMO RX ASO HRA Road, which transit advocates say $2.25 million local match, to do is needed to make the line a suc- mass-transit studies in 2011 on cess by reaching the populous the Gratiot and M-59 corridors. suburbs near I-696, could cost an- Detroit Mayor Dave Bing’s other $500 million, and there are administration is expected to have no local matching funds available by spring a business plan in place to qualify for the federal money for Coleman A. Young Municipal Airport. that would be needed for capital A consortium of Canadian costs. For when your corporate and government INC Improvements to Woodward investors has begun the made by the Michigan Department of environmental and regulatory Transportation north of the city lim- process to construct a $400 needs an . its make it more costly to build a million rail tunnel between Detroit ASO rail line there, say those hired to and Windsor. The goal is to open EPO work on the effort. the tunnel, which could handle the By building the line to Eight largest modern freight rail cars, by Mile, the hope is that other com- 2015. munities will see its value and the The Detroit/Wayne County Port economic development it brings, Authority is spending $22 million to construct a 21,000-square-foot prompting them to invest in mass passenger terminal and off-shore HRA PPO WELLNESS HSA RX transit and extending the line, city wharf along the Detroit River near officials have said. the Renaissance Center to serve San Francisco-based engineer- Great Lakes cruise ships and other ing firm URS Corp. — which has a deep-draft vessels. The project is Detroit office and has been con- expected to be complete by the tracted by the city to handle pre- end of this year, with some liminary engineering for the rail landscaping work done in the EPO ASO FSA DENTAL POS HMO line and to prepare the funding spring. A grand opening will coincide with the annual opening of application for federal transit the St. Lawrence Seaway. money — says it will have about 100 people working on the Detroit project. a $10 billion plan that would be The project is a joint effort by built over 25 years as demand dic- the city and the private investors tates, a proposal POS WELLNESS HMO EPO INDIVIDUAL consortium M1 Rail, which has as- unanimously sembled $125 million in cash and approved in De- tax credits to build the stretch cember 2008 by from Hart Plaza to West Grand the elected exec- Boulevard. utives of Wayne, Look to Priority Health for innovative products with A deal worked out last year in Oakland and proven care management that can signiﬁcantly curb Congress allows that money to be Macomb coun- MEDICARE COBRA used by the Detroit Department of ties and the costs and improve your employees’ health. Plus Transportation as the local match mayor of De- funding that’s right for you. Call your agent or Priority money needed to qualify for feder- troit. Health at 800 471-2504 or visit priorityhealth.com to al funding that would account for Donigan The city con- up to 80 percent of the remainder tinues to oppose regional transit learn more. of the line’s capital costs. authority legislation that remains HSA Some transportation insiders idle on the state House floor, say- POS are frustrated by what they say is ing it’s not detailed enough and a failure to embrace a regional fails to adequately tackle funding. plan of light and higher-speed com- Instead, the city prefers to see muter rail and bus systems. bills drafted after it has built the “There’s been no attention paid Woodward line. to the rest of the system,” said out- Operational costs of the Wood- RX INDIVIDUAL PPO ASO DENTAL going state Rep. Marie Donigan, D- ward line and the wider regional Royal Oak, a longtime transit ad- system will require a public sub- vocate. “There’s no effort to plan sidy, but nothing has been official- the rest of the system. It’s been or- ly proposed by anyone. phaned.” Bill Shea: (313) 446-1626, The proposed regional system is [email protected] 20101108-NEWS--0016-NAT-CCI-CD_-- 11/4/2010 3:26 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS November 8, 2010 Economy 2011 Nonprofits to nurture relationships with new state, congressional leaders

BY SHERRI WELCH CRAIN’S DETROIT BUSINESS NONPROFITS Website Congressional turnover and Ⅲ A bill extending the charitable Vernon Ehlers, R-Grand Rapids. It Visit our NEW vations would create a nonprofit council term limits are top of mind for individual retirement plan rollover, On-line Reser which allowed donors age 70 1/2 within the executive branch, similar to nonprofit leaders. NEW and older to give tax-free to the U.S. Small Business The need to build relationships charities up to $100,000 annually Administration. The council would with newly elected officials and to from their IRAs. The bill expired at look at how nonprofits are funded, help educate them on the services the end of 2009, has been stuck government investment in the sector the nonprofit sector provides and in the Senate for months and may and the rate of return, and nonprofits’ the issues nonprofits face will con- need to be reintroduced. economic impact. The bill is not tinue to be front and center in the Ⅲ The return of the estate tax and expected to move during this new year, leaders say. the final exemption level and top congressional session and will likely “To have four of Michigan’s 15 tax rates, which could affect be reintroduced, said Michigan congressional seats flipping is a planned gifts to local nonprofits. Nonprofit Association President Kyle huge issue,” said Rob Collier, pres- The measures are thought to be Caldwell. ident of the Grand Haven-based among the first issues new Ⅲ State and federal contract and legislators will consider. Council of Michigan Foundations. grant payment delays. The Ⅲ The Nonprofit Community Michigan Nonprofit Association Additionally, Michigan faces the Solutions Act, introduced in June by plans to look closely at government Metro Cars will handle all your transportation needs loss of at least one congressional U.S. Rep. Betty McCollum, D-Minn., granting and contracting to identify seat, following the population loss and co-sponsored by U.S. Rep. issues and ways to address them. From 1 to 56 passenger vehicles available identified in the 2010 U.S. Census. “The good news is a couple of Metro Cars is the ofﬁcial and exclusive provider of sedan (the candidates and elected offi- Michigan increased while for-profit cials) know us,” Collier said. jobs decreased, according to a new service for the Detroit Metro Airport For example, State Sen. Hansen report from Johns Hopkins University. Clark, D-Detroit, one of the co- “When you look at some of the chairs of Michigan’s nonprofit cau- industries (that can) help, as a cus, will succeed Carolyn Cheeks state we’re looking at small busi- Kilpatrick in the U.S. House, repre- ness, health care and education,” senting part of Detroit and some of with the majority of the last two Metro Cars Powered by Propane the eastern suburbs. being dominated by nonprofits in And Sander Levin, D-Royal Oak, Michigan, Caldwell said. chairman of the House Ways and Collier Caldwell Additionally, arts and cultural Means Committee, and minority groups are increasingly serving as chairman Rep. Dave Camp, R-Mid- seats were up for re-election, “so economic generators, as evidenced 800-456-1701 land, both re-elected, have worked you have that uncertainty,” said by the highly successful ArtPrize closely with nonprofits throughout Michigan Nonprofit Association Pres- open art contest and festival in their public careers, Collier said. ident Kyle Caldwell. “We have to Grand Rapids, he said. Founda- Two-thirds of the Michigan Sen- figure out how this (new) Legisla- tions increasingly spur economic ate turned over, and all House ture feels about nonprofits.” development in the state, and gov- In the run-up to the elections, ernments increasingly outsource Collier and Caldwell said they had safety net services to nonprofits. talked to candidates about the role Caldwell and Collier said an on- nonprofits play in helping govern- going dialogue between the non- ment serve the neediest people. profit sector, the new governor “After the election, the same and newly elected officials is need- thing is needed, really reaching ed to ensure the continuation of out to those members elected into the Charitable Trust Section of the office to show them how we can be state attorney general’s office, an good partners,” Caldwell said. advisory council only four states MAKING STEEL HISTORY. Currently, one in 10 Michigan have. It was founded by the office employees work for a nonprofit, of the foundation liaison and the ONE CUSTOMER AT A TIME. making the sector one of the state’s state’s nonprofit caucus last year. major employers. During the height Sherri Welch: (313) 446-1694, of the recession, nonprofit jobs in [email protected]

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November 8, 2010 CRAIN’S DETROIT BUSINESS Page 17 Economy 2011

REAL ESTATE Commercial real estate may stir with auto rebound With bank lending slow and CMBS lending nearly nonexistent, BY DANIEL DUGGAN be the pent-up demand from poten- private-equity financing and private CRAIN’S DETROIT BUSINESS tial buyers and sellers who’ve been real estate investment trusts will We’re going to see things get better, but not on the sidelines, said Jonathan back commercial real estate deals. Expect more good news for ten- “ Dwoskin, regional manager of the Shadow space: As companies ants and buyers with cash in 2011, get better fast. Southfield office of Marcus & Mil- downsized, many left large along with more bad news for land- ” lichap Real Estate Investment Ser- portions of their office spaces lords and investors trying to refi- Jonathan Dwoskin, vices, a firm that specializes in in- empty. As those companies nance their buildings. Marcus & Millichap Real Estate Investment Services vestment sale transactions. expand in 2011, they’ll take the The commercial real estate in- “People, at the end of the day, unused space rather than enter a new lease for a larger office, thus tractions for the foreseeable fu- Grubb & Ellis. dustry is expected to see some want to do business,” he said. keeping the regional vacancy rate signs of life as the automotive in- ture,” Gantner said. “But we’ll see some imported “We’re going to see things get bet- unchanged. Any expansions in the use of growth, as we see sectors such as dustry prepares for a rebound. ter, but not get better fast. And The trend of suburban A small increase in the use of of- real estate will come largely from battery production improve, along we’re going to see people get off the companies looking for space in fice and industrial real estate is ex- the local companies seeing growth, with foreign firms investing in the sidelines next year.” Detroit is expected to continue in pected, but rental rates are not ex- said Fred Liesveld, managing di- area,” he said. Daniel Duggan: (313) 446-0414, 2011 as tenants show interest in pected to rise. rector of the Southfield office of Driving many deals in 2011 will [email protected] the city. “This will continue to be an occupant-led market in 2011,” said Mark Woods, managing director of South- field-based Sig- nature Associates. “There is reason for some enthu- siasm, though, Woods because we’re going to see business profitability and the overall business climate improve.” The main issue for financing will continue to be delinquent commercial mortgage-backed se- curity loans, the type of loan that makes up most lending on office and industrial buildings. At the end of September, there was $1.3 billion worth of loans more than 90 days late, according to data from New York-based Trepp LLC, representing a delinquency rate of 18.3 percent. Broken down to individual loans, 134 of 788 were delinquent. Many in the industry worry that as the delinquent loans trig- ger foreclosures, the resulting bargain-basement sales will de- value buildings near the foreclosures. However, the low prices will be good for buyers, Woods said. “With the value that’s out there for speculative investors, we’ll see some opportunities for improvement to the existing inventory,” he said. A major issue will continue to be financing, said William Watch, co-founder of Southfield-based First Commercial Realty & Develop- ment Co. and chairman of the De- troit District Council of the Urban Land Institute. “The banks still have a tight leash on things,” he said. “Nation- ally, commercial real estate values have fallen by almost 40 percent over the last year. While we’re starting to see rebounds locally and nationally, we’re not going to see prices increase until the banks are lending again.” Tenants have been finding more efficient ways to use their real estate and have been contracting as leases end, said Ron Gantner, executive vice president in the Detroit-office of Jones Lang LaSalle. Many of the 10-year leases signed between 2000 and 2005 will be coming to the end of term in the next few years, and companies will take that time to reduce rental costs, move to a smaller and more efficient office space, or both. “We’re going to see some con- 20101108-NEWS--0018-NAT-CCI-CD_-- 11/4/2010 3:27 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS November 8, 2010 Economy 2011

Your role is central. Manufacturers cautiously add capacity

Your inﬂuence far reaching. BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS

Auto suppliers and other manufacturing companies are pointing to stabilization and an improved business forecast for next year. However, while revenue spikes are coming for automakers and across the supply base, trepidation still exists as manufacturers fear credit volatility, overcapacity and sometimes-fickle consumer de- Opportunities in Detroit with the PCAOB mand as production increases over the next 12 months, according The Public Company Accounting Oversight Board offers a unique to industry analysts. opportunity to promote the public’s interest in high quality financial “It’s inevitable that the demand reporting and auditing. will return,” said Dan Cheng, partner and vice president at manage- Opportunities are available in Detroit for CPAs or Chartered Accountants ment consultant A.T. Kearney Inc. in Southfield. “We’ve seen suppliers with at least eight years of recent experience auditing public companies cut back in a big way, but uncer- who are interested in joining our Inspections team. tainty is still there, challenging them on when they should believe The PCAOB offers career growth opportunities, competitive compensation the recovery is happening.” and benefits, work/life balance and, above all, a chance to make a difference. The latest J.D. Power & Associates outlook forecasts vehicle produc- Call (800) 810-0870 or log on to www.pcaobus.org for more details. tion at 12.9 million for 2011, up nearly 4.5 million units from 2009. The PCAOB is a nonprofit corporation Higher production volumes raise established by Congress. Its mission is to oversee capacity issues for suppliers, the audits of public companies in order to Cheng said. protect the interests of investors and further the public interest in the preparation of informative, “The OEMs have historically put accurate and independent audit reports. It is the capacity risk on the supplier, also charged with overseeing the audits of but the OEMs tend to be overly opti- broker-dealer compliance reports under federal mistic about volumes,” he said. securities laws, to promote investor protection. “This leaves suppliers seeking for The PCAOB is an equal opportunity employer dedicated to establishing a diverse workforce. the right amount of capacity without creating unnecessary risks and without upsetting the OEM.” Suppliers are cautiously adding fixed costs as new contracts roll in, GLENN TRIEST “Uncertainty is still there,” said Dan Cheng, partner and vice president at A.T. said Mike Wall, director of global Kearney in Southfield. Cheng is sure supplier demand will return eventually. financial services at IHS Inc. in Health Care Experience Grand Rapids. “They will find themselves need- MANUFACTURING ing to add back fixed costs, but look- With gasoline prices and technologies will develop to remove ing to keep those costs minimal,” consumer demand in flux, look for weight from vehicles, including lighter In Your Corner. Wall said. “Suppliers are still ner- manufacturing procedures that advanced steel applications. vous going into next year, not be- allow suppliers and OEMs to quickly An increase in joint ventures cause of volumes, but of external transition lines from one product to among manufacturers looking to factors like credit availability.” another. access emerging markets in the Loans are still difficult to come As CAFE regulations increase Asia-Pacific region to reduce risk by in the sector, but banks are during the next 15 years, new and costs and better use assets. starting to react to the improved fi- nancials, Wall said. “Supply of labor is going to be an slashed the workforce, a lot of en- “Banks are beginning to re-en- issue,” he said. “Suppliers are go- gineers left town.” gage in automotive,” he said. “But ing to need to bring people back Dustin Walsh: (313) 446-6042, it’s more costly to access credit into the fold, but when they [email protected] now, and this has suppliers cautiously looking for credit because they are still wary of a double-dip recession.” Despite industrywide uncertainty, most manufacturers are experi- Planning a group outing encing growth, according to the In- dustry Market Barometer from this holiday season? New York-based ThomasNet. More than 58 percent of Michi- We’ve got the ticket. gan-based respondents reported Save at performances by seven stellar growth during the past six months, ahead of the 45 percent national av- organizations, including Detroit Symphony erage, according to the survey. Orchestra, University Musical Society, Richard Rubin, president of De- Michigan Opera Theatre, Detroit Chamber troit-based Maxi Container, distrib- Winds & Strings and more! utes 55-gallon drums and bulk con- tainers to manufacturers Larry Burns throughout the area. Maxi is up the 10,000 barrels from last year, sig- cultural naling manufacturing prosperity. “Our growth is mirrored by concierge a program of the cultural alliance what’s happening with manufac- of southeastern michigan, turing in Detroit,” he said. a 501(c)(3) organization Hiring will also return for many First Tier Ranking manufacturers in Southeast in Health Care Law Michigan, according to the survey, Find out more! with 42 percent planning to hire in Contact Larry Burns at [email protected] the next six months. www.theculturalconcierge.org N Novi N Grand Rapids N Kalamazoo N Grand Haven N Lansing However, filling the ranks may 248.767.6731 [email protected] prove difficult, Wall said. 20101108-NEWS--0019-NAT-CCI-CD_-- 11/4/2010 3:28 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 19 CALENDAR FdgW^ahW[e Women Detroit. With: Steve Morris, ban Land Institute; Crain’s Detroit 7fWd`S^ WEDNESDAY executive managing director and Business; Grand Rapids Business NOV. 10 principal, Newmark Knight Frank. Journal; others. With: Daniel Kildee, New Technology and Startup Advice. VisTa Tech Center, Schoolcraft Col- co-founder and president, Center for 11:30 a.m.-1 p.m. Lunch Ann Arbor lege, Livonia. $35 members, $50 Community Progress; Christopher Marketing. With: Matthew Growney, guests. Contact: (785) 832-1808; e-mail: Leinberger, professor of practice in ur- CEO, Isabella Products Inc. Conor [email protected]; web- ban and regional planning, University O’Neil’s, Ann Arbor. Suggested dona- site: www.crewdetroit.org. of Michigan Taubman College of Ar- tion $3, lunch discounted to $10 for chitecture and Urban Planning; oth- LA2M. Contact: (734) 272-4698; e-mail: Real Estate Forum: Sparking Reinven- ers. Riverfront Center, Flint. $50-$265. Contact: (517) 403-4469; e-mail: [email protected]; website: la2m.org. tion – The Evolution of a Factory Town. [email protected]; website: CREW Detroit November Meeting. 11 7 a.m.-5 p.m. Nov. 10; 7 a.m.-4:30 p.m. www.taubmancollege.umich.edu. a.m.-1 p.m. Commercial Real Estate Nov. 11. University of Michigan; Ur- Click on the event listing. THURSDAY NOV. 11 Inforum Economic Outlook 2011. 11:30 a.m.-1:30 p.m. With: Michael Finney, president and CEO, Ann Arbor Spark; Camille Humphries Lee, investment officer, MFS Investment Manage- ment; others. Hyatt Regency, Dear- born. $55 Inforum members; $65 nonmembers. Contact: (877) 633-3500; website: www.inforummichigan.org.

Placemaker Award Dinner. 6-10 p.m. Detroit District Council of the Urban Land Institute. Honoring Edsel Ford II, board of directors, Ford Motor Co.; and Peter Karmanos Jr., CEO, Com- puware Corp., for their contribution toward Campus Martius Park and the revitalization of Detroit. Westin Book Cadillac, Detroit. $350. Contact: (248) 807-1600;e-mail: shannon.sclafani @uli.org; website: detroit.uli.org.

Time Inc.’s Assignment Detroit Wrap- Up. 11:30 a.m. Detroit Economic Club. With: John Huey, editor-in-chief, Time Inc.; Steven Gray, Assignment Detroit bureau chief; others. Masonic Temple, Detroit. $45 members, $75 nonmembers, $55 guests of members. Contact: (313) 963-8547; e-mail [email protected]; website: www.econclub.org . FRIDAY NOV. 12 Startup Weekend Detroit. 6-11 p.m. Nov. 12; 9 a.m.-11 p.m. Nov. 13; 9 a.m.-9 p.m. Nov. 14. Quicken Loans; Kauff- man Foundation; TechTown; iDetroit. Resources and incentives to help build successful startups. With: Aman- da Chocko, program director, Momen- tum; Maria LaLonde, recruiting specialists, Bizdom U; others. TechTown, Detroit. $75 professionals, $40 students. Contact: (586) 876-2688; e-mail: [email protected]; website: detroit.startupweekend.org.

WORKFORCE DEVELOPMENT CONFERENCE TUESDAY AT WSU You Deserve: Expert Help with Succession Planning. Wayne State University’s Forum on Find us at PMFA.com. Contemporary Issues in Society and Crain’s Detroit Business present Crain’s Job Creation and Workforce Development Conference 7:30 a.m.-2:30 p.m. Tuesday at the McGregor Conference Center on the WSU campus. Keynote UPCOMING BREAKFAST ROUNDTABLE: speaker Daniel Pink, author of November 16 Free Agent Year-end Tax Planning: What can you do now? Nation and A Whole New All roundtables will be held from 7:30-8:30 a.m. Mind, will Pink at 27400 Northwestern Hwy, Southﬁeld, MI discuss the 48034. nontraditional workforce. Other speakers include Mark Gaffney, Visit roundtables.pmfa.com to register. president of the Michigan AFL-CIO; Seating is limited. Sharon Miller, dean, economic and workforce development, Oakland Community College; Sam Singh, INVESTMENT MANAGEMENT I *TRUST SERVICES I senior strategy consultant, New *INSURANCE SERVICES I *TAX PLANNING Economy Initiative; others. ESTATE PLANNING I WEALTH MANAGEMENT I Tickets are $60, or $70 at the BUSINESS TRANSITION I PHILANTHROPIC PLANNING door. To register, go to www. regonline.com/2010workforce. QHHGTGFVJTQWIJCHſNKCVGUQH2/(# DBpageAD.qxd 10/28/2010 1:17 PM Page 1 20101108-NEWS--0021-NAT-CCI-CD_-- 11/4/2010 3:29 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 21

CRAIN'S LIST: LARGEST OEM PARTS SUPPLIERS By 2009 original-equipment manufacturer parts sales

Company OEM sales OEM sales Address ($000,000) ($000,000) Percent Rank Phone; website Top local executive 2009 2008 change Products Johnson Controls - automotive operations Beda Bolzenius $12,800.0 $19,300.0 -33.7% Seating systems, electronics, interiors, batteries 1. 49200 Halyard Drive, Plymouth 48170 president, automotive (734) 254-5000; www.johnsoncontrols.com experience

Delphi Automotive LLP Rodney O'Neal 11,755.0 B 18,060.0 -34.9 Electronics, transportation components, integrated systems 2. 5725 Delphi Drive, Troy 48098 president and CEO (248) 813-2000; www.delphi.com TRW Automotive Holdings Corp. John Plant 11,600.0 15,000.0 -22.7 Vehicle control and driver-assist systems; braking, steering, suspension and 3. 12025 Tech Center Drive, Livonia 48150 president and CEO occupant safety, electronics, engine components, body control and fastening (734) 855-2600; www.trwauto.com systems Lear Corp. Robert Rossiter 9,700.0 B 13,600.0 -28.7 Interior systems, seats, instruments, flooring, acoustic systems 4. 21557 Telegraph Road, Southfield 48033 chairman, president and CEO (248) 447-1500; www.lear.com Visteon Corp. Donald Stebbins 6,420.0 9,100.0 -29.5 Climate, electronics, interiors, lighting 5. 1 Village Center Drive, Van Buren Township 48111 chairman, CEO and president (734) 710-5000; www.visteon.com BorgWarner Inc. Tim Manganello 3,961.8 5,264.0 -24.7 Engine and drivetrain systems and components 6. 3850 Hamlin Road, Auburn Hills 48326 chairman and CEO (248) 754-9200; www.borgwarner.com Denso International America Inc. Yoshiki "Steve" Sekiguchi 3,448.0 C 3,331.0 C 3.5 Thermal, powertrain controls, electronic and electric systems, small motors, 7. 24777 Denso Drive, P.O. Box 5047, Southfield 48086 president and CEO small motor telecommunications (248) 350-7500; www.densocorp-na.com Continental Automotive Systems Samir Salman 3,374.0 C 5,077.0 C -33.5 Tires, stability-management systems, electronic chassis systems, brake 8. 1Continental Drive, Auburn Hills 48326 CEO, Continental North America systems (248) 393-5300; www.conti-online.com Robert Bosch LLC Peter Marks 3,330.0 D 4,407.0 D -24.4 Gasoline and diesel systems, chassis systems and controls, steering systems, 9. 38000 Hills Tech Drive, Farmington Hills 48331 chairman, president and CEO brakes, electrical drives, starters, generators, car multimedia (248) 876-5000; www.boschusa.com IAC Group James Kamsickas 3,200.0 4,500.0 -28.9 Instrument panels, cockpits, door panels, headliners, flooring, acoustic 10. 5300 Auto Club Drive, Dearborn 48126 president and CEO systems, exterior components (313) 240-3000; www.iacgroup.com Federal-Mogul Corp. José Maria Alapont 3,004.0 4,229.0 -29.0 Bearings, pistons, piston rings, sealing systems, system-protection products 11. 26555 Northwestern Highway, Southfield 48033 president and CEO (248) 354-7700; www.federalmogul.com Aisin World Corp. of America Masayasu "Mike" Saito 2,642.0 3,615.0 C -26.9 Body systems, brake and chassis systems, electronics, drivetrain engines and 12. 46501 Commerce Center Drive, Plymouth 48170 president and CEO components (734) 453-5551; www.aisinworld.com Faurecia Michael Heneka 2,300.0 2,600.0 -11.5 Automotive seating, emissions control technologies, interior systems, 13. 2500 Executive Hills Blvd., Auburn Hills 48326 president, North America automotive exteriors (248) 409-3500; www.faurecia.com Yazaki North America Inc. Masashi Yamashita 2,061.0 2,221.0 -7.2 Connection systems, electrical distribution systems, electronic components, 14. 6801 Haggerty Road, Canton Township 48187 chairman of the Yazaki board instrumentation (734) 983-1000; www.yazaki-na.com Cooper-Standard Automotive James McElya 1,945.3 2,594.6 -25.0 Body sealing, fuel, brake and emissions, thermal management and anti- 15. 39550 Orchard Hill Place Drive, Novi 48375 chairman and CEO vibration systems (248) 596-5900; www.cooperstandard.com Benteler Automotive North American Operations Jachim Perske 1,902.0 B 2,607.0 B -27.0 Chassis systems, engine and exhaust products, body structure products 16. 1780 Pond Run, Auburn Hills 48326 president (248) 377-9999; www.benteler.com TI Automotive Ltd. Bill Kozyra 1,800.0 2,300.0 -21.7 Fluid carrying systems, HVAC systems, powertrain components, plastic fuel 17. 1272 Doris Road, Auburn Hills 48326 chairman of the board, president tanks, fuel delivery modules and pumps (248) 494-5000; www.tiautomotive.com and CEO Tower Automotive LLC Mark Malcolm 1,634.0 2,172.0 C -24.8 Structural components, assemblies and suspension modules 18. 17672 N. Laurel Park Drive, Suite 400E, Livonia 48152 president and CEO (248) 675-6000; www.towerautomotive.com Philips Automotive Lighting Dennis Samfilippo 1,617.0 D 1,941.0 D -16.7 Lighting, playback modules, car radio components, LCDs 19. 34119 W. 12 Mile Road, Suite 102, Farmington Hills 48331 general manager (800) 257-6054; www.nam.lighting.philips.com/us/automotive American Axle & Manufacturing Holdings Inc. Richard Dauch 1,552.0 B 2,109.0 B -26.4 Driveline and drivetrain systems, axles, driveline modules 20. 1 Dauch Drive, Detroit 48211 co-founder (313) 758-2000; www.aam.com TK Holdings Inc. Robert Fisher 1,482.0 1,463.0 1.3 Airbags, seat belts, electronics, steering wheels 21. 2500 Takata Drive, Auburn Hills 48326 executive vice president (248) 373-8040; www.takata.com DuPont Automotive Tony Coletta 1,440.0 1,645.0 -12.5 Automotive coatings, plastics, specialty chemicals and high-performance 22. 400 N. Groesbeck Highway, Mt. Clemens 48043 vice president, OE fibers and films (586) 468-2811; www.automotive.dupont.com GKN Driveline North America Inc. Max Owen 1,293.0 1,901.0 -32.0 Constant-velocity driveshafts, traction-control devices, powder metal 23. 3300 University Drive, Auburn Hills 48326 regional managing director, products (248) 377-1200; www.gknplc.com Americas Dura Automotive Systems Inc. Jeff Stafeil 1,288.0 B 1,752.0 -26.5 Driver-control systems, glass systems, seat mechanisms and structures 24. 2791 Research Drive, Rochester Hills 48309 CEO (248) 299-7500; www.duraauto.com Hayes Lemmerz International Inc. Curtis Clawson 1,250.0 B 1,904.3 -34.4 Wheels and automotive components 25. 15300 Centennial Drive, Northville 48168 chairman, president and CEO (734) 737-5000; www.hayes-lemmerz.com

This list of automotive parts suppliers is an approximate compilation of the largest such businesses in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. For companies based in Detroit and divisions of U.S.-based companies in Detroit, figure is for worldwide OEM sales. For divisions of foreign-owned companies, figure is for North American OEM sales. B From Automotive News. C Company estimate. D Automotive News estimate. LIST RESEARCHED BY CAMILLE PIPPEN AND ANNE MARKS DBpageAD.qxd 9/29/2010 1:23 PM Page 1

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November 8, 2010 CRAIN’S DETROIT BUSINESS Page 23 Extra

ISTOCKPHOTO.COM People

Sunitha Santhakumar, M.D., assistant professor of the Wayne State There is University “ department of a huge neurology and medical director Break down communication of the neurology clinic, has been gap. Santhakumar appointed to co- chair the ” Michigan Stroke Initiative, a coalition Carol Callaghan, of experts and agencies addressing Michigan Department of Community Health the burden of stroke and recommending strategies to reduce it. change that providers and insurers can use Santhakumar’s co-chair is Phillip the to reduce duplications in care and identify Scott, M.D., associate professor of symptoms and diseases more quickly? emergency medicine at the University Opportunity: Health care reform re- of Michigan Medical School. wards providers who move toward elec- Lei Ren, Ph.D., a senior tronic records, which eventually could associate physicist in the be shared to avert unnecessary proce- department of radiation oncology at dures, reduce errors and speed diag- Henry Ford Hospital, was given the noses. Basic Science Abstract Award at the Federal dollars can speed provider ac- 52nd annual American Society for ceptance and training, as well as the de- Radiology Oncology meeting in San velopment of existing exchanges in the Diego on Nov. 2. Ren was given the state. Those exchanges have languished award for his research to reduce walls in early stages largely because of under- radiation therapy imaging dose and funding and provider resistance. improve treatment accuracy by Challenge to region: Stakeholders optimizing use of cone beam should drive a better-integrated health computed tomography — an imaging technique that helps guide radiation Summit-goers prescribe teamwork information exchange in a way that im- therapy to better target tumors. proves clinical outcomes. Work group attendees also thought patients should con- In addition to Ren, the study co- trol online health portals and maintain authors from the Henry Ford to treat health care system’s ills portable electronic health records. Other department of radiation oncology are Jian-Yue Jin, Ph.D.; Benjamin Movsas, BY MICHELLE MARTINEZ ways they never have before. ideas included focusing on high-cost M.D., and Indrin Chetty, Ph.D. SPECIAL TO CRAIN’S DETROIT BUSINESS Crain’s Health Care Leadership Sum- chronic diseases such as diabetes and finding ways for payers to share more Four Michigan health care mit, held Oct. 14 in Novi, gathered stake- data with providers. workers received the 2010 Michigan here’s no shortage of ideas about how holders to advance the best ideas to Whittling the ideas down to one that Health and Hospital Association to make health care work better in boost quality while reducing costs and to T Southeast Michigan, and no shortage make health care another economic en- stakeholders can act upon quickly is the Health Care Leadership Award during the MHA Health Foundation of initiatives. gine for the region. first task, said Joanne Or- Governance and Leadership Forum in But if there’s a shared theme following Last year, summit atten- tolan, vice president of op- Plymouth on Oct. 24. the passage of federal health care reform dees shaped eight “big erations at Livonia-based InterMed Corp. and part of Winners of the award were: Chris legislation, it’s that health care profes- ideas” for the region, in the the group that has volun- Christ, former trustee of Battle Creek sionals need to work together in trans- form of questions. This teered to work on the chal- Health System Community Partners; formative ways. year, the more than 600 at- lenge. Duane Mezwa, M.D., corporate chief That may sound basic, but teamwork tendees worked in eight of radiology services for Royal Oak- hasn’t been one of the health care sys- groups to challenge the re- A patient-controlled based Beaumont Hospitals; Patricia tem’s traditional strengths. gion to create change around those ideas. portal and portable electronic records Maryland, Ph.D., president and CEO “If (team-based care) came to fruition, Ideas ranged from figuring how to in- need to be tested against stakeholder of St. John Providence Health System it would be easy to close the feedback crease the number of primary care needs and experiences to avoid mistakes, in Warren; and A. Gary Muller, loop with primary care physicians, physicians in metro Detroit to using she said. Ortolan cited a hospital that president of Marquette General which doesn’t happen now,” said Carol technology to improve the quality of in- tried to provide access to health records Hospital. Callaghan, director of the division of formation used to treat patients. Volun- via an electronic device. Patients reject- M. Ashraf Mansour, M.D., has chronic disease and injury control for teers from different sectors of health ed the device and the idea never gained been named academic chair for the the Michigan Department of Community care now will move those goals forward. traction, she said. Grand Rapids- Health. “There is a huge communication Part of the summit’s value was “the di- “We don’t know if patients want to based Spectrum gap between what’s occurring versity of viewpoints,” said Mar- control their health records,” she said. Health Medical and what primary care needs to ianne Udow-Phillips, director of Group. know.” the Center for Healthcare Research 2. Provider shortages Mansour will Health care reform is pushing and Transformation, a nonprofit provide guidance new models that place the pa- backed by Blue Cross Blue Shield How might we increase the number of pri- and leadership tient at the center of teams of of Michigan and the University of mary care providers, including physicians, for all research, caregivers — systems that re- Michigan Health System. What mid-level practitioners, physician assistants education and quire physicians, nurse practi- emerged, she said, was a “very and nurse practitioners? Michigan State tioners, specialists and others to specific idea that we could fol- Opportunity: The reform act funds University College communicate in unprecedented low.” scholarships and loan repayment for Mansour of Medicine ways. And emerging practice Following are ideas from each health care professionals to help offset fi- Udow-Phillips issues for models emphasize buyer partici- work group. Crain’s will track nancial challenges associated with pri- Spectrum Health’s surgical pation in determining things like quality their progress. mary care practice. The average medical specialties. and efficiency of treatment. student in the state graduates $160,000 in He is head of the Spectrum Health It takes more than buzz words and plati- 1. Information technology debt, according to a 2008 study by the De- vascular surgery division and interim tudes. In particular, experts agree, it partment of Community Health. That chief of Spectrum Health’s means tearing down information “silos” How do we use information technology to department of surgical specialties. and letting providers communicate in create an online health information ex- See Teamwork, Page 24 20101108-NEWS--0024,0025-NAT-CCI-CD_-- 11/5/2010 10:38 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS November 8, 2010 Health Care Extra Teamwork: 8 questions ■ From Page 23 nearly matches the average salary help communicate with primary of a primary care physician. care physicians, she said, and The act also provides financial work could begin on the structure incentives and pilot programs to en- immediately. courage providers to give care as “Tremendous unified teams — called patient-cen- buy-in” would be tered medical homes — to improve required from care for patients, cut down on re- employers and dundant testing and improve effi- employees, she ciency. (See Question No. 4 .) said, as lifestyle Ⅲ Challenge to region: Educate changes require physicians and patients in team- time, consisten- based care and find ways to let cy and don’t al- providers reassign or eliminate ways show an Matuszewski work that does not improve pa- immediate tient care. Increase funding for change on a balance sheet. debt-for-service programs at university, state and federal levels. Several reform provisions en- 4. Medical homes courage development of patient- What strategies might encourage centered medical homes, and initia- doctors to adopt a patient-centered tives such as those by Blue Cross medical home approach or eventually already have made the state a na- an accountable care organization tional leader in designating physi- provider structure? cian practices as medical homes. Ⅲ Opportunity: With 1,800 physi- Work by the Michigan Primary Care cians in 500 practices designated Consortium to encourage team-based as medical home practices, Blue care, along with medical school and Cross Blue Shield of Michigan’s health professional leaders, is a program is the largest in the U.S. source of stakeholders to lead the And other payers are pushing for challenge, the group said. similar programs, said Thomas Team care is key in the medical Simmer, Blues senior vice presi- home model, which means patient dent and chief medical officer. care is backed not only by the The model aims to coordinate physician but by nurse practition- care among provider teams to im- ers, social workers, health educa- prove quality and reduce costs. tors and others, said Callaghan, a Health care reform gives incentives. senior consultant for the MPCC. Ⅲ Challenge to the region: Double “What that does is have everyone the number of patients assigned to in the practice working at the top of designated patient-centered med- their license and free physicians to ical homes. oversee the operation, to look at the That may mean doubling the population health, the whole panel amount of physicians in such of patients … to improve their practices, Simmer said — some- health status,” she said. thing he said could be done by The model will not only increase summer 2012. the number of patients that can be The designation process re- seen by the multidisciplinary team, quires training and adopting new but make primary care more attrac- habits, including collaborating tive to medical students, she said. with other providers and some- The group imagined launching a times other systems to provide program led by educators and the care. Financial incentives have to MPCC by summer 2012 and accom- align with the new model, and pa- We think having too much on your plate plishing its goal by June 2017. tients need to know how their experiences will change and how is a good thing. they can become more involved. 3. Employee wellness But with many physicians work- How do we provide incentives for ing to earn the medical home desig- employees to choose healthier nation and hospitals in the region lifestyles? creating or examining accountable Ⅲ Opportunity: Wellness programs care organizations, “the momen- have grown as employers increas- tum already exists,” Simmer said. ingly see them as ways to reduce spending on sick employees and increase overall performance. 5. Lean processes Insurers have multiple products How can we leverage lean tech- that offer lower premiums, de- niques developed by automakers to ductibles and other benefits for streamline processes in hospitals and reaching health goals. New grants physician offices? and investments in prevention, Ⅲ Opportunity: Lean techniques public health, disease research have been integrated into many and screening afforded by the re- hospitals in Michigan to boost effi- form act can also boost efforts. ciency, improve quality, cut waste Ⅲ Challenge to region: Establish a and improve patient satisfaction. multiple-stakeholder committee Programs include clinical initia- that would provide a set of tools tives to do everything from im- and success benchmarks employ- prove emergency department effi- A tender 6-oz. ﬁlet paired with your choice of Crab Cake, Shrimp & Scallop Skewer ers could use to help employees ciency and quality, to improve achieve healthy lifestyles. workflow in hospital labs and re- or Lobster Oscar for $27.95. The approach would be different duce patient wait times. than existing efforts because it About half of the medical cost to would offer a “full component of employers and patients is due to nursing specialists, coaches, edu- waste in the system, said Robert cators, nutritionists and exercise Mecklenburg, M.D., medical direc- specialists,” said Medical Network tor of the Center for Health Care So- One CEO Ewa Matuszewski, and lutions at Virginia Mason Medical Cen- challenge volunteer. ter in Seattle, at the Crain’s summit. " )2-).'(!-s,)6/.)!s2/#(%34%2(),,3 Networks with patient-centered Virginia Mason in 2004 created a 777-)4#(%,,3& )3(- !2+%4 #/- medical home providers could See Next Page 20101108-NEWS--0024,0025-NAT-CCI-CD_-- 11/5/2010 10:38 AM Page 2

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 25 Health Care Extra From Previous Page lion, but with care shifting toward health systems, two medical 8. Grants and R&D group of providers, employers a team-based approach, health schools and a variety of life science CON Roundup and health plans that met to ad- systems are now looking to reor- research and technology concerns. How can we leverage federal and dress waste and inefficiencies. ganize to provide more care in The state is a national leader grant funds to grow research and devel- The model they created helped ambulatory settings. for initiatives like e-prescribing opment, especially in technology that Starbucks Corp. slash by 40 percent Ⅲ Challenge to region: Create in- and pushing forward a patient- cuts cost, improves quality and ex- Shelby nursing the medical costs employees ran centives to reduce capacity centered medical home model. Ex- pands the region’s life sciences sector? up at Virginia Mason in 2006 for through taxes, government fund- isting efforts, such as Mainstreet Ⅲ Opportunity: Michigan already treatment of lower back pain. Oth- ing and provider payments, and to Medical, Automation Alley and other boasts 10 business incubators and home gets OK 12 Michigan Economic Development er collaborative groups achieved support certificate of need by op- groups, provide a home and model Southfield-based Fountainbleu Corp. SmartZones — clusters of savings around migraines, chest posing legislative exemptions for to launch such an effort. LLC, an affiliate of Ciena Healthcare Ⅲ tech-based firms, entrepreneurs pain and heartburn. new capacity, whether for hospi- Challenge to region: Create Management Inc. in Southfield, re- Ⅲ and researchers where collabora- Challenge to region: Physi- tals or surgery and imaging cen- branding and marketing that po- ceived state approval last month to tions among universities, govern- cians, hospitals, employers and ters. sition the region as a leader for build and operate a new nursing ments and other groups sprout insurers can collaborate through The current reimbursement talent; attracts employers, pa- home in Shelby Township. startups and tech-based jobs. Re- the Greater Detroit Area Health Coun- system rewards health care tients and conventions; and devel- The 52,000-square-foot facility search universities, medical cil’s Save Lives, Save Dollars cam- providers for performing as many ops regional centers of excellence will cost $7.8 million and will have schools, health care systems and paign to create a common defini- services as possible. in at least three clinical areas. 120 semiprivate beds. There will be life science companies make the tion of quality and system of care, Aligning reimbursement and A starting point might be to about 27,000 square feet of clinical region a potential hot spot for re- and then educate physicians, other funding with treatment val- take stock of best practices service area. search dollars and investment. nurses and hospitals on lean ue, as well as with care delivered across the region that stakehold- The following are selected fil- Ⅲ Challenge to region: Turn the thinking. along a medical home model, ers could promote as a kind of ed- ings and decisions from Oct.1-31: GDAHC already has many of would change the incentive and ucational tour for health care University Research Corridor into those elements in existence, said the way providers use capacity. providers, said Henry Ford COO “Michigan Research Center” to be Filings approved: John Billi, M.D., associate dean But along with incentives, it’s Bob Riney. inclusive, strengthen existing Ⅲ Affiliated Medical of Dearborn, for clinical affairs at the University vital to strengthen certificate of Competition has stymied previ- SmartZones to assure a more uni- Dearborn; initiate a mobile MRI of Michigan Medical School and as- need regulations and plug legisla- ous efforts to market the region as form scope and increase aware- host site, $3.5 million. ness of resources within the state. sociate vice president for medical tive loopholes, the group said. a medical destination, but a “best Letters of intent: The University Research Corri- affairs at the University of Michigan. One recommendation? A re- of Detroit’s” hospitals or life sci- Ⅲ Advanced Surgery Center PLLC, dor, composed of the University of And stakeholders in Save Lives, quirement to limit any hospital ence tour would showcase the re- Dearborn; renovation and addi- Michigan State University Save Dollars include insurers and replacement capacity to 125 per- gion’s collective talent and build Michigan, tion for outpatient surgery; three employers to provide input on def- cent of the average daily bed use trust among stakeholders. and Wayne State University, might operating rooms, $2 million. initions of quality, he said. over the past two years. Successes could be built on by make sense in the long term as a Ⅲ Botsford Hospital, Farmington presenting the region’s assets in statewide organization that in- Hills; initiate a fixed MRI service; 6. Capacity issues 7. Medical destination similar ways to attract biotech includes other colleges, universities build a 4,000-square-foot addition; vestments or medical equipment and research firms, said Udow- and renovate ambulatory radiology What strategies might be used to How can we make Southeast manufacturers. Phillips, a facilitator of the group. suite, $4.9 million. address overcapacity in acute-care Michigan a medical destination for “There are a lot of small and But political and logistic barriers Ⅲ University of Michigan Health hospitals, imaging centers and patients, health care companies, re- medium-sized (conferences) we are formidable. System, Ann Arbor; initiate one surgery centers? search dollars and device makers? can compete with, tie to site visits Increasing statewide awareness Ⅲ Ⅲ fixed hospital-based intraopera- Opportunity: Expansions un- Opportunity: Southeast Michi- … and make a much more attrac- of SmartZones could result in tive MRI scanner, $5.6 million. der way in the region top $2.5 bil- gan is home to nationally ranked tive and exciting option,” he said. “quick outcomes,” she said. —Shawn Wright DBspreadAD.qxd 10/26/2010 11:21 AM Page 1

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Page 28 CRAIN’S DETROIT BUSINESS November 8, 2010 PEOPLE CAREER MOVES IN THE SPOTLIGHT POSITIONS AVAILABLE Ann Arbor Spark, an economic- Call Us For Personalized development group representing Service: (313) 446-6068 business interests in Washtenaw ! " County, has named Bill Mayer to "##$ %&! "''( the new CLOSING TIMES: Monday 3 p.m., position of one week prior to publication date. Please call us for holiday closing times. director of its business accelerator. FAX: (313) 446-1757 Mayer, 41, had E-MAIL: [email protected] 100% Health Care been INTERNET: consulting the www.crainsdetroit.com/section/classifieds A nine attorney accelerator’s clients since Confidential Reply Boxes Available practice group 2007. He PAYMENT: All classified ads must be Mayer assumes prepaid. Checks, money order or fully committed duties previously held by Managing Crain’s credit approval accepted. to Michigan’s Director Skip Simms, who remains Credit cards accepted. in that position. See health care Mayer earned a bachelor of business administration degree Crainsdetroit.com/Section/Classifieds industry. from the University of Michigan. for more classified advertisements BIOTECHNOLOGY Learn more at Ronald Cresswell, former senior vice fosterswift.com president and chief scientific officer of Warner-Lambert, appointed to the board of directors, Aastrom Bio- MARKET PLACE sciences Inc., Ann Arbor.

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E Schwartz and Cohn LLP, Ann Arbor, S C 100 from senior associate, Shefsky & Local pick up & delivery service IN RE: Ken Ross, Office of Financial and Froelich Ltd., Chicago. 1 Pallet - Truck Load Insurance Regulation v. Michigan Health “Where You Get Your Buck$ Worth” Warehousing Maintenance Organization Plans, Inc., Ingham County Circuit Court No. 98-88265-CR. REAL ESTATE Canadian Consolidations Storage Trailers TO: Medical providers who are creditors of the Thomas Shanabruch to vice president Trailer Parking former OmniCare corporation. As a result of www.mrtransportation.com and managing director of residential litigation against OmniCare’s former parent [email protected] corporation, there is a fund of approximately $2 client services group, McKinley Inc., 734-946-7031 million. A motion has been filed seeking court Ann Arbor, from commercial portfo- instruction as to the distribution of the proceeds. A lio manager; also, Albert Berriz to vice hearing on the motion is scheduled for December president and managing director of 10, 2010, at 2:00pm, before the Hon. James R. EVENT PLANNING Giddings, in Lansing, Michigan. The motion and owned residential group, from vice Court order scheduling the hearing are posted on president and director of residential the website of the State of Michigan’s Office of sales and marketing; Joanna Dettling Financial and Insurance Regulation (OFIR), to vice president and managing direc- INDOOR GO KART www.michigan.gov/ofir, under the section "Who tor of real estate services, from vice We Regulate" and the subsection "OmniCare." president of asset resolution services; RACING and Matt Mason to senior vice president and managing director of real es- Comfort and tate, from vice president of sales and acquisitions. t$IBSUFST Luxury SUPPLIERS Brett Pynnonen to senior vice president t5PVST and general counsel, Federal Mogul Holiday Parties Corp., Southfield, from associate gener- Team Building t4IVUUMFT al counsel and assistant secretary. 00 Simon Ahn, managing partner and OPEN DAILY $100 counsel for Ahn and Associates LLC, t$POWFOUJPO4FSWJDFT SAVE OFF appointed to the board of directors, 35 mph Racing Karts ALTe LLC, Auburn Hills. Catering & Bar Services t$PSQPSBUF&WFOUT Andrea Sorrenti to vice president of Contact Indian Trails for details. Must use this North American retail network solu- 586.997.8800 t4DIFEVMFE4FSWJDF promotional code at time of booking: CDB52nov tions, MSX International Inc., Warren, kart2kart.com from managing director, MSX Inter- national Inc., Italy. 20101108-NEWS--0029-NAT-CCI-CD_-- 11/5/2010 5:32 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 29 Gale: Restructures, hires REAL ESTATE ■ From Page 3 The company announced in cult economy and funding envi- AUCTIONS AUCTIONS INDUSTRIAL PROPERTY July it was consolidating its two ronment at the state and local lev- primary business units — the aca- el,” wrote Andrew Finkelstein, a AUCTION - 76.26 ACRES Troy -- Sale or Lease demic/professional group and the director at London-based Barclays Inkster Rd . Taylor, MI 67,700 Sq. Ft. Mfg. or Whse. library/reference group that in- Capital, in a Sept. 13 analysis of Located at Inkster & Goddard Rds Primary Power • 3 Truckwells cludes Gale — as a way to save Cengage. Tract 2 Tract 7 $1.95/Sq. Ft. Lease Rate money and boost productivity. Cengage calls Gale its library Wednesday, November 10th Possible Seller Financing There also was a change at the reference arm and says it special- 111 Acres in 8 Tracts Beginning at 5:00 PM Broker/Owner (248) 705-0835 top of Gale as part of the reorgani- izes in e-research and educational zation: Patrick Sommers, who publishing for libraries, schools Former site of Sparrow Hawk Golf Course Held at: The Marriott Hotel Pontiac Warehouse for Lease came to Gale at the end of 2007 and businesses. It maintains more Best Deal in Town! from SirsiDynix Corp. in Utah, re- than 600 databases that are pub- 30559 Flynn Dr . Romulus, MI tired as president of the company lished digitally, in print and other for multi-use development Order of Sale – Offered in 3 Tracts: at the end of July and was not re- formats. Tracts ranging from 1.7 to 34 acres placed as part of the realignment. “There are certainly market Real Estate Auction Tract 1 - Inkster Rd: Parcel 1 - 39.26 Acres “Gale is part of a larger compa- pressures, particularly within cer- Tract 2 - Goddard Rd: Parcels 2 & 3 - 37 Acres nywide structure, so there is no tain sectors of the database/li- Tues, Nov 30 at 7PM Tract 3 - Combo: Parcels 1, 2 & 3 - 76.26 Acres • Warehousing, Machine/Die Storage, longer one person in charge of the brary services market,” said Lyn- Auction Manufacturing operation,” Herling wrote. da James-Gilboe, senior vice !"#$% For more information, contact Auctioneer: • M/59, Widetrack, and Woodward Area Craig Herschel - [email protected] • 5,000 to 200,000 Sq. Ft Available This isn’t the first major job president of marketing and cus- Inspection Dates: with Offices, Short or Long Term THE TEAM No Signature. No Results. shakeup at Gale. tomer care at Ann Arbor-based &'()*+,-!').*/+ Leases In December 2003, it cut 180 jobs ProQuest LLC, a Gale competitor On site on Tract 7, 2618 Seymour Rd 888.708.7070 • 8 Interior Truck Wells, 16 Ft. Ceiling www.signatureassociates.com/inksterauction.htm across its offices, about half of that specializes in electronic and Heights, Sprinklers, Heated, Buss Duct, and Air Lines. 248-496-3405 which came in Farmington Hills microform information products among editorial and technology and services. “For example, public Call or email today for information positions. libraries and K-12 institutions face on a custom advertising plan! Cengage is privately held, with real budget challenges.” 0*0(1* still-forming plans to go public, Gale corporate clients include #3# [email protected] but various obligations require Amazon.com, San Francisco-based %!! 313.446.6068 Rail - Easily Accessible - Low Rates &!,4!# Available: On-site Mgmt - Exterior Storage the company to make public its fi- pay-per-click advertising network 83,719 SF www.waretechindustrialpark.com nancial data. LookSmart Ltd., Ann Arbor-based AUCTIONS CATELLUS GROUP, LLC The company, whose official Borders Group Inc. and New York 43,000 SF (810) 695-7700 name is Cengage Learning Holdings City-based financial publisher Dow II LP, reported $2 billion in revenue Jones & Co. Luxury Real Estate Auction for the fiscal year ending June 30, The company was known as AVAILABLE NOW up slightly from $1.9 billion for Thomson Gale until it and then- 2009. parent company Thomson Learning Auction on-site Sunday, December 12th at 1pm 4,000 to 100,000 sq. ft. The Gale segment accounted for were sold by Stamford, Conn.- Also 10,000 & 25,000 sq. ft. $289 million in revenue for the based publisher Thomson Corp. in year, down nearly 3 percent from May 2007 for $7.75 billion to pri- Free Standing Bldgs w/truckwells. last year’s $297 million but vate-equity and venture capital 1 Mile from Metro Airport stronger than analyst expecta- firms Apax Partners and Omers Capi- tions. Profit was down nearly 16 tal Partners, the private-equity arm REA CONSTRUCTION percent, to $106 million from $126 of the Ontario Municipal Employees million. Retirement System. (734) 946-8730 Cengage blamed the declines on Cengage was formed out of the decreased sales. deal and is headquartered in Stam- Also Heavy Industrial Analysts, who praised Cen- ford. Land Available gage’s overall performance for the Gale was formed locally in 1954 year, didn’t expect Gale’s reported by Frederick Gale Ruffner initial- www.reaconstruction.net gains for some quarters amid the ly to create a comprehensive list of overall decline because the unit is U.S. associations. Preview and Registration at Noon susceptible to library cutbacks It was bought in 1985 by Thom- LABORATORY SPACE made by educational institutions son, then primarily a financial in- Sunday Open Houses: Nov. 21st and Dec. 5th. Noon-3pm and local governments. formation and newspaper publish- As featured on MTV Teen Cribs, the heart of this home offers beauty, Biotech/Wetlab in Lansing “Positive growth at Gale was er, because Gale was becoming a elegance, and entertainment to family and friends alike. At 9,961+/- sq. ft., Near Capitol Region Intl. Airport again surprising, as management major player in information data- this residence features 6 en suite bedrooms with everything necessary to 100% makeup air • 3 fume hoods had cautioned that the prior quar- bases alongside competitors such make visiting family and friends feel pampered and comfortable, 10 air compressor • vacuum pumps deionized water & R/O ter’s growth was likely due to (cus- as ProQuest and Dayton, Ohio- bathrooms, bonus game room, and 4 car heated garage – where no expense tomer order) timing. We remain based Lexis-Nexis. 2,400 sf lab space — 1,500 sf office as been spared! Entertaining is effortless with this state-of-the-art gourmet 6,150 high-bay warehouse. particularly confused about this Bill Shea: (313) 446-1626, kitchen; you’ll never want to eat out again! At 3760+/- sq. ft., the basement business given the continued diffi- [email protected] Call Mark Kerrins -- 517-371-7682 is its own getaway with a 1950’s style diner with juke boxes and retro-style bar. [email protected] Indoor hockey and basketball court for sports fans, and a little girl’s dream with a private arts and crafts room equipped with painting counters and built-in cabinets. Ready to relax? Head to your private movie theater where OFFICE SPACE the electric screen descends from the ceiling, and it’s showtime! The outdoor Kefallinos buys Corktown’s Roosevelt Hotel sanctuary will take your breath away with a custom in-ground pool, pool Flint Township Office Building house with an outdoor kitchen and grill for entertaining, tennis court, private The shuttered Roosevelt Hotel in The Russell Center for Creative Arts, a golf course, and coy stocked pond. Don’t let Franklin’s best kept secret slip Corktown has been sold to Dennis nonprofit. away! Call today for details! Kefallinos, owner of a variety of He’s also the owner of properties in Detroit. Bouzouki’s, a strip club in Greek- Chris Mihailovich, a property town. Rose Auction Group, LLC • Class A Office Building 877.696.7653 or roseauctiongroup.com • I-69 / I-75 / US23 near Bishop Airport manager for Kefallinos’ Detroit- The Roosevelt Hotel reportedly • Up to 20,000 Sq. Ft. Available - 300 car parking based Boydell Development Co., con- was sold by Wayne County at auc- Beth Rose, CAI Auctioneer - #2801000078 • Fully Furnished with 100 pre-wired workstations firmed the sale Friday but would tion on Oct. 25 for $37,500, said Jeff • 800 kw backup generator not disclose the price or plans for DeBruyn, president of the Cork- • General Offices, Call Center, Data Center or Medical Offices the property. town Residents’ Council. 248-496-3405 According to the Wayne County DeBruyn is one of the leaders of Register of Deeds, the property was the nonprofit Imagination Station foreclosed on Sept. 17. community art project right next Call Us For Personalized Kefallinos is the owner of loft door to the hotel. The nonprofit Service: (313) 446-6068 apartment buildings and business- sought to purchase the Roosevelt es in the city, including Niki’s Pizza at the auction as part of its grow- FAX: (313) 446-1757 and Loco Bar & Grill in Greektown ing project. E-MAIL: [email protected] and the River Park Lofts and The Imagination Station consists INTERNET: Lafayette Lofts. of two neighboring houses the non- www.crainsdetroit.com/section/classifieds He is credited with saving prop- profit picked up from the county for erties in Detroit that otherwise $500 each. The nonprofit recently See would have remained empty, in- acquired the rights to buy five emp- Crainsdetroit.com/Section/Classifieds cluding the Russell Industrial Center, ty lots to the south, as well. for more classified advertisements which he owns. The center houses — Gary Anglebrandt 20101108-NEWS--0030-NAT-CCI-CD_-- 11/5/2010 6:50 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS November 8, 2010 From business Business to Snyder: We’re here to help to politics: Bing’s BY AMY LANE SBAM began work two years ago CAPITOL CORRESPONDENT RULES FOR KIBITZING on how the state should change its Want to propose policy to the economic development strategy, advice to Snyder LANSING — Business is look- incoming governor? You can, but seeing a window of opportunity ing for change. when a new administration, whoev- there are rules. Spokesman Bill Making the transition from And it’s willing to lend exper- er would lead it, would take office. Nowling said Rick Snyder is open business leader to politician is no tise to help Gov.-elect Rick Snyder to input, but will apply three criteria Fowler said the group doesn’t easy feat. So Crain’s Detroit Busi- make it happen. to any offered advice or requests: have to sell Snyder on its position. ness thought it Whether it’s improvements in ■ Does the proposal benefit all the And SBAM will now pass on its re- might be help- the state regulatory process, axing people of Michigan? If so, it’s search, input from experts and ful to have De- the Michigan Business Tax or fix- something he’ll look at. Fowler Baruah other information to the new ad- troit Mayor ing the structural deficit in the ■ Who is the best person from the ministration and has offered its Dave Bing state budget, business officials are opposing viewpoint to talk to and During the campaign, Snyder help in transition team activities. share what he offering up experts, staff, re- find out why he or she doesn’t like held policy roundtables around Sandy Baruah, president and the idea? has learned sources and information to help the state, closed to the press and CEO of the Detroit Regional Cham- ■ with Gov.-elect Snyder at the intersection of his Don’t ask for money. Rather, hitting on areas like agriculture, ber, is one who said he has talked what is the goal that needs to be Rick Snyder. goals and theirs. education, taxes, the state budget to members of the Snyder team. reached? Here is his top Michigan Chamber of Commerce and economic development. The “I’m willing to lend chamber re- 10 list — in no President and CEO Rich Studley roundtables were designed in part Bing sources; I’m happy to facilitate particular or- said his group is ready to lend as- Which needs to come first: MBT to capture views on the problems chamber members, their compa- der — to help with Snyder’s Jan. 1 sistance and provide information or budget reform? “They’re inter- facing Michigan and the issues nies, playing a role in the transi- change of hats: to the new administration. related; you can do them togeth- that need to be addressed. tion or in the new administra- 1. As the leader of a business, Snyder’s plans to address the er,” Studley said. It’s not as impor- The invitees spanned key stake- tion,” he said. you make decisions from the top Michigan Business Tax resonate tant the order, he said, as it is that holders and political parties. Even some who opposed Snyder down. As an elected official, you with many in the business com- “there’s a vision and a compre- “He invited Democrats to this are exploring avenues. need to build from the bottom up. munity, including the state cham- hensive plan for action.” table, to a visioning of what-the- The Michigan Education Associa- Strong support from your con- ber, which was one of the few busi- And lest anyone think the new state-ought-to-look-like table. And tion, which backed Democratic stituency can be as important as ness groups to oppose the MBT administration will represent, it really raised some eyebrows,” Lansing Mayor Virg Bernero, sees having the right facts. when it was established. and reflect in its makeup, carte Fowler said. “He has said I don’t a role it can play with the new ad- 2. As hard as it is, recognize Studley said the need to balance blanche for business or Republi- care about party label … I want ministration and has begun con- that you cannot change every- the state budget is also a critical cans, Snyder spokesman Bill the best minds. And he means it.” versations with the Snyder team, thing instantly. We didn’t get to issue to employers. By early Nowling said: “He’s putting to- SBAM’s top priority is a change said Doug Pratt, the MEA’s direc- the position we’re in today March, Snyder must present a gether an administration that he in economic development strategy tor of public affairs. overnight, so we won’t be able to budget that addresses a projected thinks is the best administration to focus more on “economic gar- He said Snyder has talked about fix it overnight. It’s going to take $1.5 billion to $1.6 billion shortfall. to reinvent Michigan. And that dening,” or supporting fast-grow- wanting to hear all sides of issues a long-term commitment to the Snyder has proposed eliminat- means the best talent, the best ex- ing small Michigan companies. and “wants decisions driven by fundamental issues to take De- ing the MBT and replacing it with pertise and the best ideas.” The group released a blueprint data. And that’s what we can help troit and the state of Michigan a 6 percent corporate income tax, That doesn’t mean an all-Repub- upon Snyder’s election and called with. We’ve got lots of data and re- where they need to go. in tandem with instituting a new lican administration, or an all- for the Michigan Economic Develop- search on education-reform is- 3. There will always be naysay- budget system that is perfor- business-oriented administration, ment Corp. to commit at least sues, and in particular the work ers, no matter what you do. Criti- mance- and outcome-based. He be- he said. “It’s going to be an admin- 60 percent of its budget toward we’ve done around tax-incentive cism comes with the top job. It is lieves there are enough efficien- istration that’s diverse and that economic-gardening activities. effectiveness.” the same reason so many people cies and savings that can be found looks like and represents all of SBAM also wants to see the state Snyder has said incentives cheer for the backup quarter- to offset the $1.5 billion tax cut, al- Michigan.” elevate its activity and success in should be used sparingly and tied back. You cannot satisfy every- though scaling back tax incen- Rob Fowler, president and CEO commercializing technology and to results, and he calls for their one all the time. tives could also be part of the way of the Small Business Association of put more emphasis and value on use to decrease as the state im- 4. Don’t be afraid to make big to pay for the tax relief. Michigan, takes Snyder at his word. entrepreneurism. proves its business climate. changes. People will tell you The MEA has said it isn’t every day what you cannot do. against the use of tax incentives to That is how we got to where we build Michigan’s economy but are today. It’s time for new think- sees that they should work as ef- ing, new partnerships and a new fectively as possible at a time direction. when schools are struggling with 5. Spend time in the trenches budget cuts and funding problems. with people facing life’s chal- Corks Forks Pratt said public education pro- lenges. We may think we know && duces results, and that’s one of the what has to be done, but you have things Snyder wants. “The best in- to take the time to understand the vestment long term that we can circumstances people are facing A charity wine tasting and strolling dinner hosted by make in our economic future is an to truly tackle the big challenges. investment in education,” he said. 6. There are underused re- Detroit Wine Organization For the Michigan Manufacturers sources in every organization. Association, a “cultural change that Find them. Whether it is politics November 20th To benefit would make state government cus- or poor management, there are tomer-friendly and efficient” is a people with great ideas who are The Reserve at Big Rock Chop top priority, said President and waiting to be engaged. CEO Chuck Hadden. 7. Surround yourself with peo- House, Birmingham One way to get there could be ple who are as committed as you through wide deployment of “val- are. You cannot succeed without a 6:00-9:00 PM ue stream mapping” concepts in great team. You need people with a which all steps of a process are variety of skills, but commitment scrutinized for value, waste and is the one characteristic you General Tickets $70 improvement, ultimately provid- should demand from everyone. ing efficiencies. “We would be 8. 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People think I’m crazy for here, and that goes across the taking on this responsibility at this Davenport University Illuminating Concepts board for businesses and resi- point in my life. I’m sure they will Lucido-Morris Wealth Management Michigan Financial Companies dents.” ask you the same thing. I am still Patriot Services Corporation Powerlink Facilities Management Valassis Amy Lane: (517) 371-5355, working on the answer to that one. [email protected] — Marti Benedetti 20101108-NEWS--0031-NAT-CCI-CD_-- 11/5/2010 7:24 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 31 New legislative leaders come forward Snyder: Biz lends hand ■ From Page 1 BY AMY LANE elect. … Rich is definitely some- speaker of the Michigan House CAPITOL CORRESPONDENT one that the governor-elect trusts who lost to Virg Bernero in the and listens to.” Democratic primary for gover- LANSING — New leaders are Interviews are being conduct- nor. Dillon got accounting and emerging in Michigan’s Legisla- ed by several people, Nowling law degrees from Notre Dame Uni- ture. said, including the announced versity and has a background in As of Friday, it appeared Sen. transition team leadership of private equity, having worked Randy Richardville, R-Monroe, Business Leaders for Michigan CEO for GE Capital and the private-eq- would be the new Senate majority Doug Rothwell; his wife, Sharon uity firm Wynnchurch Capital. leader, presiding over a chamber Rothwell, vice president for cor- He also served as president of Randy Richardville, Gretchen Whitmer, James “Jase” Bolger, in which Republicans strength- porate affairs for Masco Corp. and DSC Inc., formerly McLouth Steel. ened their hold last week. R-Monroe, expected D-East Lansing, R-Marshall, expected Senate majority new Senate minority next House speaker who had been chief of staff to for- Dillon was unavailable for Sen.-elect John Proos, R-St. leader leader mer Gov. John Engler; and Meijer comment. Joseph, had been a contender for Inc. President Mark Murray, a Rizik said he had not been majority leader, but published re- 2006. Prior to her state House elec- dent of government relations at former state treasurer and bud- asked to consider a position in ports Friday, including in Gongw- tion, she was an attorney with the Detroit Regional Chamber. get director. Jeff Barnes, who the administration and would er News Service, indicated he Dickinson Wright PLLC in Lansing. Jim Holcomb, vice president of was Snyder’s campaign manager, not have accepted one if asked. would withdraw from the race. Kelly Rossman-McKinney, CEO business advocacy at the Michigan is the team’s chief of staff. One of Snyder’s closest friends Richardville was elected to the of The Rossman Group public rela- chamber, said Bolger “has a lot of Kelly Rossman-McKinney, a — he was in Snyder’s hotel room Senate in November 2006 and has tions firm in Lansing, called Whit- talent as a legislator. He takes member of the Michigan’s Next in the Book Cadillac when been chairman of the Senate Bank- mer talented and “very intellectu- your opinion, knows how to ana- Governor Project to outline is- Bernero called Tuesday night to ing and Financial Institutions ally capable.” She said Whitmer lyze it, can work across the aisle … sues facing the next governor offer his congratulations — Rizik Committee. He also spent six years has “a pragmatic approach to gov- can take input and mold an issue.” and the CEO of Lansing public re- said Snyder knew that he was in the state House. erning that puts the good of the Hubbard said the leaders that lations firm The Rossman Group, committed to his job as president The Michigan Manufacturers Associ- people first.” have emerged will be able to work said she thinks Snyder is looking and CEO of the Detroit-based Re- ation this year named Richardville The Michigan Chamber of Com- with Snyder and his team. She not- for people who are “smart, busi- naissance Venture Capital Fund I LP, its legislator of the year, citing his merce, however, places Whitmer ed that Whitmer and Richardville ness-savvy, innovative thinkers. a $50 million fund drawing in- support of manufacturers and pro- last on its list of voting records for “are experienced legislators even And I would certainly encourage vestments from some of the manufacturing policies. senators, on key business issues. in this era of term limits.” him to have a team that includes largest companies in Southeast The Senate’s new minority Senate Democrats also elected Richardville and Bolger, as the those seasoned veterans that re- Michigan to invest in other ven- leader is Sen. Gretchen Whitmer, Tupac Hunter, D-Detroit, to be Legislature’s presumptive Repub- ally know and understand state ture capital funds in the area. D-East Lansing, who will become Senate Democratic floor leader. lican leaders, have shown an abili- government, (along) with those Asked if he had accepted a posi- the first woman to lead a Michigan In the state House, Rep. James ty to not only work with Democ- folks that have never worked in tion in the Snyder administration Senate caucus. “Jase” Bolger, R-Marshall, has rats but also to unify factions in state government before and or if he would be staying at Spark, She faces significant challenge emerged as the expected next their own party, she said. have a totally fresh eye.” he relayed through a staffer Fri- in a chamber where Republicans speaker. On the Democratic side of the But the challenge also, in day afternoon while in a board will hold a 26-12 supermajority Bolger, currently finishing his House, the leadership race ap- putting together a team of both meeting that he was unavailable that will, among other things, al- first two-year term in the House, peared still in flux late last week veterans and those new to gov- for comment. low Republicans to give bills im- was most recently the lead negotia- as to who would head the minori- ernment, is to have that team gel Finney is someone Nowling de- mediate effect without needing De- tor for House Republicans on state ty caucus, with state Reps. quickly, she said. scribed as “of a similar mind mocratic votes. employee retirement legislation Woodrow Stanley, D-Flint, and Those picked for the adminis- when it comes to economic devel- Whitmer, daughter of retired passed in September. Richard Hammel, D-Mt. Morris tration will also have to work opment” and someone Snyder Blue Cross Blue Shield of Michi- “Having experience dealing Township, as candidates that had hard, fast and long. “I don’t envy trusts and has talked to over time. gan CEO Richard Whitmer, was with such a tough issue before been vying but others potentially anyone on the transition team or Nowling declined to comment first elected to the Senate in a spe- you’re speaker really lays the emerging. the first several months of gov- specifically on appointments. cial election in March 2006 and groundwork for his success,” said Amy Lane: (517) 371-5355, ernment,” she said. “They have Finney also chaired a round- was in the state House from 2000 to Sarah Hubbard, senior vice presi- [email protected] so much work to do. This is not a table on economic development for sprint. This is like running a Snyder, one of several policy marathon every single day.” roundtables the campaign held Decisions were being made around the state. quickly following the election to Greg Main, who joined the prepare for a press conference MEDC as president and CEO in Events focus on reshaping state’s future scheduled for this morning to an- April 2009, has a contract that ex- nounce some appointments. pires March 31. With a new governor and crop of Other speakers will include gan Health & Hospital Association. One name being mentioned Fri- Other names circulating for legislators and state officials com- Camille Humphries Lee, CFA, invest- Date: Dec. 8 day for an unspecified post was potential posts that include chief ing to Lansing in January, a series ment officer, MFS Investment Man- Time: 10:30 a.m.-1:30 p.m. Dick Posthumus, lieutenant gover- of staff, among others, in the ad- of business and networking events agement, and Sam Stovall, chief in- Location: Michigan Chamber of nor under John Engler and also a ministration included Public Sec- are focused on reshaping the vestment strategist, equity Commerce, 600 South Walnut St., previous gubernatorial candidate. tor Consultant Inc. executives Bill state’s future. Among them: research group, Standard & Poor’s. Lansing Posthumus could not be reached. Rustem and Ken Sikkema and Date: Thursday Cost: Through Nov. 17, $60 (MSAE Others being named for posi- longtime Capitol insider Dennis Ⅲ The Michigan Society of Associ- Time: 11:30 a.m.-1:30 p.m. member); $80 (nonmember); and an tions including treasurer and Muchmore. ation Executives offers a chance to Location: Hyatt Regency Dear- additional $35 for the networking head of the Michigan Economic De- Interviewed Friday, Rustem, talk informally with incoming born, 600 Town Center Drive, lunch. After Nov. 17, $70 (MSAE velopment Corp. were Mike Finney, president and CEO of Public Sec- freshmen legislators during the Dearborn member); $90 (non-member). Chris Rizik and Andy Dillon. tor Consultants, said he has been 2010 MSAE Meet, Greet and Eat. Cost: $55 for Inforum members; Web site: www.msae.org. One name at least — Rizik’s — providing counsel when ques- The event will be a strolling $65 for nonmembers. can be scratched off the list of con- tions are asked but has not been lunch catered by chefs from the Website: Ⅲ Business Leaders of Michigan tenders for appointments Snyder offered a post with the adminis- Grand Traverse Resort and Spa and www.inforummichigan.org and The Center for Michigan will will announce at 11 a.m. at the tration. the Radisson Hotel Lansing, among host the event Common Sense Re- Gerald R. Ford School of Public Is he interested? “I don’t know. others. During the lunch, atten- Ⅲ Association leaders from forms for a New Michigan. Newly Policy at the University of Michigan. I’d want to know what it is, what dees will have an opportunity to business, education and health elected leaders are expected to dis- Rizik joined the Detroit office the salary is. I’m in a happy place speak directly with legislators. care will discuss strategies to cuss topics on public sector effi- of Coopers & Lybrand in 1982, right here. I don’t know if I’d go.” Date: Wednesday make Michigan healthier finan- ciency, making Michigan competi- shortly after Snyder, and the two Muchmore, an executive with Time: 11:30 a.m. -1:30 p.m. cially, politically and socially dur- tive and investing in the future. have been close friends since. DHR International Inc., an execu- Location: Radisson Hotel Lans- ing the Michigan Society of Associa- Other speakers will include Doug Rizik subsequently got his law tive recruiting firm, was a founding, 111 N. Grand Ave., Lansing tion Executives’ Strategies for Rothwell, chairman of Snyder’s tran- degree and was asked when he ing partner of Muchmore Harring- Cost: $85 Advancing Michigan. sition team and president and CEO was at Dickinson Wright PLLC in ton Smalley & Associates Inc. in Website: www.msae.org Attendees will learn about strate- of Business Leaders for Michigan; 1997 to help Snyder with legal Lansing. He was also executive gy creation and plans for implemen- Phil Power, president, The Center for work when he was launching the director of the Michigan United Ⅲ Michael Finney, president and tation from Snyder’s transition Michigan; Jeffrey Guilfoyle, presi- venture capital firm of Ann Ar- Conservation Clubs for two years, CEO of Ann Arbor Spark, will be team and three association leaders dent, Citizens Research Council of bor-base Avalon Investments. ending in summer 2009. among the speakers at Inforum’s that represent important sectors of Michigan; and Patrick Devlin, CEO, A year later, Rizik joined Sny- Muchmore said he has not Economic Outlook 2011 event. Michigan’s economy — business, Michigan Building and Construction der as a partner in the firm and been offered anything from the Finney has been described by education and health care. Trade Council. later co-founded a successor firm, governor-elect, although he’s had Inforum as an adviser to Gov.-elect Panelists include Jeanne Engle- Date: Dec. 13 Ardesta LLC. people ask him if he has an inter- Snyder. Finney, along with the hart, president of the Grand Rapids Time: 12:30 p.m.-6 p.m. Snyder recruited Finney to re- est in participating. rest of the panel of leading eco- Area Chamber of Commerce; William Location: Radisson Hotel Lans- turn to Michigan from New York Muchmore said he would be in- nomic analysts, will discuss the Mayes, executive director of the ing, 111 N. Grand Ave., Lansing to be president and CEO of Ann Ar- terested. “I’m willing to con- national and local trends likely to Michigan Association of School Ad- Cost: Free; registration required. bor Spark, the economic develop- tribute and do anything they ask have an impact on the Michigan ministrators; and David Seaman, ex- Website: ment organization he co-founded. me to do. So far they haven’t economy in the upcoming year. ecutive vice president of the Michi- www.thecenterformichigan.net. Dillon is the term-limited asked me to do anything.” 20101108-NEWS--0032-NAT-CCI-CD_-- 11/5/2010 5:16 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS November 8, 2010 Economy: Slow, steady growth marks long haul out of recession ■ From Page 1 In early November, unemploy- try. We’ll continue to see the auto ter job opportunities while work- bers are not in yet for 2009 or 2010, 60,200 jobs in 2012, the forecast es- ment in Michigan was 12.9 per- sector contribute to growth. There’s ing in Michigan may mean lower growth in Michigan this year will timates. cent. And unemployment rates in a process under way in Michigan of pay, he said. “This will be a transi- most likely be 1.5 percent, while “Although we expect the broad the state vary considerably de- renewal — entre- tion decade for Michigan.” nationally it should hit 2.5 percent. decline in employment to end, the pending on the city, said Jim preneurs devel- Glassman had a different take. Despite some signs of a Michigan relatively modest pace of job Glassman, senior economist for oping new com- He said Michigan is one of a group economic recovery, not all regrowth will still leave many resi- J.P. Morgan Chase Bank in New panies.” of states where layoffs have fallen searchers agree the state has hit dents struggling,” the report said. York, who keeps watch on the eco- Johnson said back to prerecession days, a sign bottom yet. The Research Seminar in But Glassman said “things are lev- nomic status of the bank’s regions. he views hiring the worst may be over. “I think Quantitative Economics at the Universi- eling out. The trajectory has Ann Arbor is faring best with an as an important this is telling us about the turn- ty of Michigan said as much in its changed. Some industries are still 8.8 percent unemployment rate, gauge of eco- around in the auto industry. Judg- Oct. 5 Michigan forecast. The jobs declining, but not at the same down from 10 percent in July, ac- nomic health, ing on the layoff numbers, we’d data for the first eight months of pace. Detroit is less bad and transi- cording to data gathered at the end and the pace of say the recession is over.” this year show “up-and-down tioning to better.” of October by the U.S. Bureau of Labor hiring is still He said surrounding midwestern monthly changes translated into Auto sales are still depressed, but Statistics. Glassman said next is Johnson modest. states such as Ohio and Indiana, as job losses in the first quarter, fol- car companies are making money, Kalamazoo, followed by Lansing, PNC’s Dye said he is concerned well as Kentucky, North and South lowed by smaller gains in the sec- he said. “And someone forgot to tell Battle Creek, Muskegon, Grand about the soon-to-be released 2010 Carolina and Iowa, also are experi- ond quarter ... and a quarter of zero the consumer we’re in (hard times), Rapids, Saginaw and Holland. Un- U.S. Census results that will define encing declining layoffs, he said. growth for the summer months.” because people have been buying. employment for Detroit, Warren the state’s migration patterns. He Glassman added that because A jobs decline is expected in the Total new car sales for 2010 are and Livonia is 13.4 percent, down said more of a worry is whether the state has been in such “a deep fourth quarter due to losses in predicted by AutoNation to reach from 14.4 percent a month earlier. the thousands who lost their jobs hole” and unemployment is still so state and local government and the 11.5 million, according to Crain’s “The cities where there are but have remained in the state col- high, people don’t realize the econ- private sector along with the de- sister publication Automotive more knowledge-based (workers) lecting unemployment will leave omy has started to improve. parture of the last temporary cen- News. Sales are higher lately be- do best,” Johnson said. in the next couple of years. A year ago, Johnson predicted sus workers, RSQE reported. cause of improved access to credit. “We no longer have the drag of States such as Texas or Florida 2 percent economic growth for the Job gains are expected to reach “The lights are coming back the restructuring of the auto indus- may “heat up” and offer them bet- state. He said, while official num- 23,000 in 2011 and jump another on,” Glassman said. Park: Early backers wanted impact DIA: The glam of sham ■ From Page 3 ■ From Page 3 “It was about how we could away in storage,” he said. “But beauty and understanding more make this gift, what it would say, everyone who collects art makes about the world and them- and how to do that most appropri- mistakes.” selves,” he said. ately.” The DIA exhibit will include Once the idea of a park became about 50 paintings, sculptures, the focus of the Detroit 300 Conser- photographs, prints, drawings Not the first vancy, the only goal was to create a and decorative arts from a num- The DIA isn’t the first museum world-class place in the city, Ford ber of cultures: European, to host an exhibit centered on said. Economic development, he African, American, Asian, Islam- questionable artwork or proven said, would likely be an outcome, ic and Ancient Near Eastern. fakes. but it wasn’t the initial goal. “We have three paintings that Bruce Museum in Connecticut “If you wander too far, you lose came in attributed to Leonardo hosted “Fakes and Forgeries: focus, and we had the goal of build- DaVinci, but they weren’t,” Beal The Art of Deception,” in 2007. ing a project that would make the said. “Scholarship in the early And the National Gallery in Lon- city proud,” Ford said. “But when 20th century wasn’t there.” don hosted “Close Examination: you spend that kind of time and In the course of putting the ex- Fakes, Mistakes and Discover- money on something, it had better hibit together, DIA curator Sal- ies” earlier this year, said Eloise have a big impact.” vador Salort-Pons solved a mys- Maxwell, press office assistant, Since the park’s creation, eco- tery that had baffled specialists in an e-mail. nomic growth has been a reality. for decades, Beal said, offering Like the DIA exhibit, the Lon- Robert Gregory, president of no hints. don exhibit focused on the work the Detroit 300 Conservancy, puts That now-solved mystery will of the museum’s scientific, con- the economic impact at $700 mil- The goal for Campus Martius Park was to create a world-class place in Detroit, be included in the exhibit. servation and curatorial depart- lion. He includes the $400 million said planner Edsel Ford II. ments, she said. for the Compuware Corp. headquar- More and more museums are ters, $50 million for the One Space Award earlier this year. Council of ULI on Thursday. Cost-saving looking for ways to be more ac- Kennedy Square building an- Likewise, the APA chose the Watch, who is also president of Drawn almost entirely from cessible to the general public and chored by Ernst & Young LLP and park as one of its 10 Great Public Southfield-based First Commercial the museum’s permanent collec- not just art collectors and critics, the $180 million renovation of the Spaces. Realty and Development Co. Inc., said tion — two works were borrowed said Dewey Blanton, director of Book Cadillac building a block “It says a lot about Campus the award is based on the vision from the National Gallery of Canada strategic communications at the and a half away. Martius to be designated with for the park and its social impact in Ottawa — the exhibit has the American Association of Museums Also included, he said, are 35 this,” said Joe MacDonald, pro- on Detroit. advantage of being relatively in- in Washington, D.C. restaurants and retailers as well gram develop- “It’s a signa- expensive to stage because “But an exhibition like this as recent office tenants that over- ment associate ture place, right there’s no shipping or additional shows so many different sides of look the park, such as Quicken for the APA. This park is in the heart of insurance, or need for additional the museum profession and adds Loans Inc. and the United Way for “This park is “ the city,” he experts or couriers to accompany a little excitement … by way of Southeastern Michigan. something that something that said. “It’s going the art, Beal said. the inherent mystery involved, The Compuware building was enhances De- to draw people Those costs vary from exhibi- sort of the Sherlock Homes (ap- an early building block, Ford said, troit and capi- enhances Detroit and to the city after tion to exhibition but can run as proach) of finding out who paint- along with Karmanos’ involve- talizes on the work, or to live much as several hundred thou- ed that art,” he said. ment. unique architec- capitalizes on the in the resi- sand dollars, he said. The exhibit is using a very cre- Asked about how much of an im- ture of the city.” dences within a The economy was a factor in ative lens to showcase the art- pact Karmanos had, Edsel said: From a plan- unique architecture 10-minute the DIA’s decision to do the ex- work and a more modern ap- “Two words: Santa Claus. ning perspec- walk.” hibit now, Beal acknowledged. proach, Blanton said. “Not only did we have the full tive, he said, the of the city. Asked if the But he was quick to point out You don’t have to be an art support of Mr. Karmanos, but also value of a public ” project is a suc- that the spirit of the exhibit actu- connoisseur to come into the DIA all of Compuware,” he said. “It in- space like Cam- Joe MacDonald, cess, Ford left ally predated any sense of cost - and look at this exhibit, he said, volved a lot of seed money, but pus Martius is American Planning Association that interpreta- saving. Beal came up with the adding that people can relate to also office space, office equipment its role in draw- tion to the idea shortly after he arrived at the this kind of thing, having seen so and leadership. Literally, we ing people downtown, which in users. DIA 11 years ago, but was waiting many detective shows on televi- couldn’t have done this without turn draws businesses. “Take a drive by after work or for a curator with the passion to sion. him.” “With all the economic difficul- during lunch,” he said. “When you work on such an exhibit. “Anytime you can heighten Since then, the park has attract- ties of Southeast Michigan, this is see people using it, or you’re using “This is another demonstra- the mystery that’s inherent in ed new retailers, restaurants and a place that continues to shine,” it yourself, that’s a success. The tion of the approach we are tak- any art collection or work of art, office tenants to the central busi- MacDonald said. objective was to create something ing … to make the works of art you can make that work of art in- ness district, Gregory said. Ford and Karmanos will receive that people will use.” accessible and to engage the visi- teresting to more people.” ULI chose Campus Martius for the newly created Placemaker Daniel Duggan: (313) 446-0414, tor in exploring the sense of Sherri Welch: (313) 446-1694, its national Amanda Burden Open Award from the Detroit District [email protected] knowledge, sharing a sense of [email protected] 20101108-NEWS--0033-NAT-CCI-CD_-- 11/5/2010 5:17 PM Page 1

November 8, 2010 CRAIN’S DETROIT BUSINESS Page 33 Health care: UM aims to set pace in year of M&A www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or mergers and acquisitions over the Commission and the U.S. Department help manage care, and this may re- [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- next several years, said Chicago- of Justice have changed the way the quire additional transactions.” HEALTH CARE 0460 or [email protected] based Navigant Consulting. federal government views whether An accountable-care organiza- Ⅲ Mergers, acquisitions and MANAGING EDITOR Andy Chapelle, (313) 446- “If looking to do a deal, they proposed mergers violate antitrust tion is a managed-care contracting affiliations will increase among 0402 or [email protected] probably have a greater ability to laws. entity that includes hospitals, ASSISTANT MANAGING EDITOR/FOCUS Jennette hospitals and physicians because Smith, (313) 446-1622 or [email protected] get the deal done than in the past,” “They are encouraging health physicians and other providers of health care reform, Medicare COPY DESK CHIEF Gary Piatek, (313) 446-0357 said Chris Myers, Navigant’s di- systems and doctors to form ac- that can manage pre- and post-hos- reimbursement cuts and lack of or [email protected] rector of its health care provider countable-care organizations,” My- pital care and contract with public access to capital. ASSISTANT NEWS EDITOR Jeff Johnston, (313) strategy group. ers said. “The government wants and private payers. Ⅲ Quality and process 446-1608 or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or Myers said the Federal Trade them to organize themselves, to Strong said UM, as a three-hospi- improvement will continue to be [email protected] priorities. tal system on a single campus, WEB DEVELOPER Steve Williams, (313) 446- wants to become a leading ACO Ⅲ Installing electronic medical 6059, [email protected] records and joining health EDITORIAL SUPPORT Robertta Reiff (313) 446- player as a statewide health system. information exchanges will move to 0419, YahNica Crawford, (313) 446-0329 And it recently has taken two the forefront. NEWSROOM (313) 446-0329, FAX (313) 446- Mission Exceptional! important steps in that direction. 1687 TIP LINE (313) 446-6766 In September, UM formed Pen- cians at a higher rate” than in pre- REPORTERS nant Health Alliance with Metro vious years, Strong said. “We want Would you describe your Daniel Duggan: Covers retail, real estate and Health in Wyoming, Mich., and to present ourselves around state hospitality. (313) 446-0414 or law firm as exceptional? Novi-based Trinity Health. The al- in various ways, through owner- [email protected] Jay Greene: Covers health care, insurance and the It could happen. liance is one cog in the wheel to ship to joint ventures to program- environment. (313) 446-0325 or create a statewide health system. matic collaborations, to tie physi- [email protected]. Chad Halcom: Covers law, non-automotive We are on a mission to provide Last month, UM formed the cian organizations and hospitals manufacturing, defense contracting and Oakland Physician Organization of Michigan as to UM.” and Macomb counties. (313) 446-6796 or exceptional legal services to every client. [email protected]. a vehicle to unite independent Later this year, when the U.S. Tom Henderson: Covers banking, finance, physician organizations. Its first Health and Human Services Depart- technology and biotechnology. (313) 446-0337 or ® [email protected]. Attorneys on a Mission partner is Physicians’ Organization ment drafts regulations for defin- Nancy Kaffer: Covers small business, the city of Your mission is our mission. of Western Michigan in Grand ing accountable-care organiza- Detroit, Wayne County government. (313) 446- Rapids, said David Spahlinger, 0412 or [email protected]. We never lose sight of it. tions, mergers of hospitals, Bill Shea: Covers media, advertising and M.D., executive director of the physician organizations and other marketing, entertainment, the business of sports, and transportation. (313) 446-1626 or 1,600-physician UM faculty group providers will pick up steam, [email protected]. practice and senior associate dean Myers said. Nathan Skid: Multimedia reporter. Also covers the for clinical affairs at the University “One of the main points will be food industry. (313) 446-1654, [email protected]. Sherri Welch: Covers nonprofits and services. of Michigan Medical School. A business advisory and advocacy law firm® to focus more on populations (313) 446-1694 or [email protected] “We have to look at health care through accountable-care organi- Dustin Walsh: Covers auto suppliers, steel, higher 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 education and Livingston and Washtenaw reform, lower our costs, reduce zations,” Strong said. “We are very counties. (313) 446-6042 or [email protected] Carl J. Grassi Stephen M. Gross readmissions, demonstrate quali- comfortable we can run an ACO in LANSING BUREAU President Detroit Managing Member ty and work with other providers,” our area; but if the rest of Michi- Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- Chicago • Cleveland • Columbus • Detroit • West Palm Beach Spahlinger said. “We will have the gan (forms a variety of ACOs), that 5355, FAX (517) 371-2492, [email protected]. or ability to contract with payers, but could disrupt the existing referral 115 W. Allegan, Suite 220, Lansing 48933. www.mcdonaldhopkins.com there will be significant risk, so patterns.” ADVERTISING you have to have everyone com- UM is talking with St. Joseph ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] mitted to a common vision.” Mercy Health System and physician SALES INQUIRIES: (313) 446-6052; FAX (313) As physicians, hospitals, home organization IHA about working to- 393-0997 ADVERTISING SALES Christine Galasso, Matthew health agencies, hospices and nurs- gether on several initiatives, in- J. Langan, Lori Tournay Liggett, Tamara Rokowski, ing homes look at the future with cluding an ACO, Strong said. Cheryl Rothe, Dale Smolinski higher costs and cuts in reimburse- “There are independent hospi- CLASSIFIED SALES (313)-446-0351 ment — brought on by health care tals, and they must look at their ac- MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- reform, competition, medical infla- cess to capital and their credit rat- 0416 or [email protected] tion and technology demands — ings,” Myers said. “In a market EVENTS MANAGER Nicole LaPointe many are expected to seek the safer that isn’t growing, there will be in- MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford haven of larger organizations. creased pressure. I expect indepen- CIRCULATION Candice Yopp, Manager. Of the 45 acute-care hospitals in dents that are not financially MARKETING COORDINATOR Kim Winkler Southeast Michigan, four are inde- strong to start talking with PRODUCTION MANAGER Wendy Kobylarz pendently owned — Crittenton Hos- stronger regional systems.” PRODUCTION SUPERVISOR Larry Williams pital Medical Center, Rochester Here are recent deals that have CUSTOMER SERVICE Hills; Botsford General Hospital, MAIN NUMBER: Call (877) 824-9374 or write been stimulated by health care re- [email protected] Farmington Hills; Barbara Ann Kar- form: SUBSCRIPTIONS $59 one year, $98 two years. manos Cancer Center, Detroit; and Ⅲ Out of state, $79 one year, $138 for two years. IHA, a 150-physician organiza- Outside U.S.A., add $48 per year to out-of-state Garden City Hospital. There are sev- tion in Ann Arbor, announced rate for surface mail. Call (313) 446-0450 or eral other physician-owned spe- (877) 824-9374. plans to merge Dec. 31 with St. SINGLE COPIES: (877) 824-9374. cialty hospitals. Joseph Mercy Health to become a REPRINTS: (800) 290-5460, ext. 125; (717) 505- Officials at those hospitals have 9701, ext. 125; or ashley.zander@theygsgroup subsidiary and begin a plan to dou- .com. said they want to remain indepen- ble in size. The two organizations TO FIND A DATE A STORY WAS PUBLISHED: dent as long as possible. announced they will become an ac- (313) 446-0367 or e-mail [email protected].

While the majority of physicians countable-care organization. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY in metropolitan Detroit either prac- Ⅲ Henry Ford Health System CRAIN COMMUNICATIONS INC. tice solo or are in small groups, formed the Henry Ford Physician Net- CHAIRMAN Keith E. Crain PRESIDENT Rance Crain many are talking about joining the work earlier this year and began to SECRETARY Merrilee Crain region’s eight major physician or- recruit private physicians into its TREASURER Mary Kay Crain Executive Vice President/Operations ganizations to enjoy economies of own ACO to take advantage of William A. Morrow scale, access to capital and more fa- health care reform. Group Vice President/Technology, Manufacturing, Circulation vorable managed care contracting. Jay Greene: (313) 446-0325, Robert C. Adams “Hospitals are employing physi- [email protected] Vice President/Production & Manufacturing Dave Kamis Chief Information Officer Paul Dalpiaz Corporate Circulation/Audience Development Director Kathy Henry G.D. Crain Jr. Founder (1885-1973) BANKRUPTCIES Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: The following businesses filed for Road, Southgate, voluntary Chapter 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Chapter 7 or 11 protection in U.S. 11. Assets and liabilities not available. 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET Bankruptcy Court in Detroit Oct. 29- Soueidan Al-Reef Restaurant Inc., 6048 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Nov. 4. Under Chapter 11, a company Telegraph Road, Dearborn Heights, is published weekly, except for a special issue the files for reorganization. Chapter 7 in- voluntary Chapter 11. Assets and lia- third week of January, a special issue the fourth volves liquidation. week of August, and no issue the third week of bilities not available. December by Crain Communications Inc. at 1155 Tyger Excavating Inc., 57250 Rosell Gratiot Ave., Detroit MI 48207-2732. Periodicals Father & Sons Inc., 3427 W. 12 Mile Road, New Haven, voluntary Chapter postage paid at Detroit, MI and additional mailing Road, Berkley, voluntary Chapter 11. offices. POSTMASTER: Send address changes to 7. Assets: $868,692; liabilities: $2.1 mil- Assets and liabilities not available. CRAIN’S DETROIT BUSINESS, Circulation lion. Department, P.O. Box 07925, Detroit, MI 48207- JG Squared Inc., 18600 Old U.S. 12, 9732. GST # 136760444. Printed in U.S.A. Paglione Home Remodeling LLC, 18624 Entire contents copyright 2010 by Crain Gillman St., Livonia, voluntary Chap- Chelsea, voluntary Chapter 7. Assets: Communications Inc. All rights reserved. $1.2 million; liabilities: $2.6 million. Reproduction or use of editorial content in any ter 7. Assets: $1,300; liabilities: $46,327. manner without permission is strictly prohibited. Soueidan Car Wash Inc., 12851 Reeck — Shawn Wright 20101108-NEWS--0034-NAT-CCI-CD_-- 11/5/2010 6:34 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS November 8, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 29-NOV. 5

Curtis Group is ganizations are now using Bank, an asset-based doing the ra- Rattlesnake a health information ex- lender, has bought West- dio, TV and change sponsored by the gate Financial Corp., a fac- Sparky’s outdoor cre- Michigan Association of toring and purchase-order ative work, Club sold to Health Plans to streamline financing company based and Sandy Her- provider billing and eligi- in Hoboken, N.J., that em- manoff of Her- bility. The plans are Great ploys six and generates manoff Public Stroh Cos. Lakes Health Plan, Health Al- about $150 million in fac- liance Plan of Michigan, toring sales annually. It charity still Hermanoff Relations in he Rattlesnake Club Farmington HealthPlus of Michigan, Moli- will be renamed Crestmark has been sold by own- Hills. They value work on na Healthcare of Michigan Westgate LLC and report T er and chef Jimmy and Priority Health. through Crestmark’s West the campaign at $10 million. Schmidt to Last year, MAHP con- Palm Beach, Fla. regional Its website is www. the restau- tracted with Covisint, a De- office. in the game believeindetroit.org. rant’s land- troit-based subsidiary of t had been 15 years since lord, De- Compuware Corp. (NASDAQ: Sparky Anderson retired Think ‘Pure Detroit,’ but troit-based CPWR), to develop MAHP OTHER NEWS Stroh Cos. I as manager of the Detroit Connect, the health infor- The Detroit Symphony nonprofit – with a museum Inc. Bob Ser- Tigers, but he still came mation exchange. Orchestra musicians can- ano, gener- back to Detroit every year Though it may be unique celed a planned picket to sell Detroit-themed mer- al manager march on Friday and have in July to attend the CATCH of the club, COMPANY NEWS Golf Classic to benefit the chandise in the suburbs, Schmidt entered into informal dis- the new Detroit Shoppe at the said Flight attendants at cussions in an attempt to nonprofit he founded in Schmidt will remain as a Somerset Collection in Troy Delta Air Lines Inc. are going end the strike that has de- 1987. consultant to help with is making itself truly non-union. Results released layed the orchestra’s 2010- Donations spiked after menu planning. unique as a nonprofit oper- Wednesday by the Associa- 11 season. news Thursday of Ander- ation. tion of Flight Attendants-CWA Detroit will be home to son’s death at age 76 from The shop, which officially show that about 53 percent a new children’s advocacy complications linked to de- ON THE MOVE opened last week, is operat- of flight attendants voted center for victims of abuse mentia. Rebecca Humphries, the ed by the Somerset Collection against joining the union, and neglect under plans un- director of On Friday morning, Charitable Foundation, which the Associated Press re- der way by Southgate- the Michi- CATCH had received 20 on- pledged to give all net pro- ported. Delta is the largest based nonprofit The Guid- line contributions totaling gan Depart- carrier at Detroit Metropoli- ance Center. ceeds to Detroit nonprofits ment of Nat- about $1,000, said Jim PAUL SANCYA/AP and cultural institutions. tan Airport. The nonprofit has signed Sparky Anderson at the ural Waterford Township- Hughes, the organization’s The Forbes Co., owner of a two-year lease for the celebration of the 25th Resources based ChargeNow will in- building and carriage executive director. It some- the mall, donated the retail anniversary of the Tigers’ 1984 and Environ- stall a total of six electric house in the Midtown area times goes months between space — though only until world championship. ment, is vehicle charging stations at to establish a center for online donations. the end of the year. into the Baseball Hall of stepping Meijer Inc. stores in Warren, children who are victims of “It’s almost like when a Part of the store follows down at the family member passes Fame in 2000. Humphries Allen Park and Holland, abuse and neglect, called the business model of well- end of the two stations per store. The Kids-TALK Children’s Ad- away, the responses I’m get- known Pure Detroit stores year to become regional di- investment by Meijer is vocacy Center. ting,” Hughes said. Brooks, Bing, Albom and with the sale of Detroit-ori- rector for Ducks Unlimited. near $100,000. The number of South- “When you’re a small or- Trick-Trick? Believe it ented merchandise, while Daniel Varner, program The 120 volt and 240 volt east Michigan homebuild- ganization like ours, you 80 percent of the 4,800- officer for plug-in stations are distrib- ing permits issued in Sep- the W.K. Kel- get to know a lot of your Think of it as Detroit’s in- square-foot floor space is uted by Roseville-based tember — 193 — topped logg Founda- donors. … It’s kind of a fam- wardly aimed version of the devoted to museum-style Shocking Solutions LLC. industry forecasts, tied tion, has ily with the board, sponsors 1985 charity single “We Are displays curated by the De- Meijer plans to install sta- August numbers and been ap- and supporters.” the World.” troit Historical Museum. tions at 10 to 20 more stores showed a 66 percent in- pointed to Donations can be made at A who’s-who of metro De- And for those who want next year. crease over 2009 levels, ac- the State www.catchcharity.org. troit personalities will gath- the real thing, the store Time Inc. plans to sell cording to data from the Board of Ed- The charity will contin- er at WXYZ-Channel 7’s will be offering a shuttle to the house it bought last Southeast Michigan Council ucation, re- Southfield studio today to Detroit to tour the Detroit year in Detroit’s West Vil- of Governments and ana- ue regardless of Ander- placing film a public service an- Institute of Arts, Pewabic Pot- Varner lage as its yearlong “As- lyzed by the Building Indus- son’s death. CATCH’s Reginald nouncement to air in Janu- tery, Hitsville USA and other signment Detroit” bureau try Association of Southeast board in 1990 set up an en- Turner, a partner in Detroit- spots. and will donate the pro- Michigan. The information dowment that ensures the ary as part of the “I’m a Be- based law firm Clark Hill ceeds to four youth-orient- covers Macomb, Oakland, charity will continue in liever” campaign aimed at PLC, who resigned. ed nonprofits in the city. It perpetuity. At the end of changing perceptions of De- St. Clair and Wayne coun- BITS & PIECES is asking $99,000, the same ties. Oakland and Macomb last year, it stood at about troit. Jeffrey Williams, former price it paid. accounted for 155 of the $6.2 million. Scheduled to appear are HEALTH CARE NEWS CEO at HandyLab Inc. who is The four nonprofits are: permits. The idea for CATCH Detroit Mayor David Bing, Hillsdale-based Shane now CEO at Ann Arbor- Teach for America-Detroit, In- came after Anderson visit- Oakland County Executive Group Inc. and Bradley based Accuri Cytometers Inc., sideOut Literary Arts Project, L. Brooks Patterson, Wayne Veneberg of Munising have ed the hospitalized grand- will be hon- City Year Detroit and OBITUARIES County Executive Bob Fi- filed a private class-action son of a close friend and ored as en- Covenant House Michigan. Cynthia Boreland, of cano, Macomb County Exec- lawsuit Oct. 29 in federal wished there was some- trepreneur Pinnacle Race Course Bloomfield Hills, died Oct. utive Mark Hackel, Detroit court in Detroit, contend- thing he could do to help. of the year has suspended simulcast 28 from complications of Police Chief Ralph Godbee, ing that Blue Cross Blue That prompted the idea of on Nov. 15 betting until January as ALS. She was 66. As Cindi Detroit Public Schools emer- Shield of Michigan’s “most using a sports memorabilia at the annu- wagering on races else- Ziegler, Boreland was one gency financial manager favored nation” contracts auction to raise money to al awards where dropped 70 percent of the top advertising sales Robert Bobb, The Parade Co. with the hospitals led them pay for items and services by September compared to representatives for Crain’s CEO Tony Michaels, rapper dinner of to pay “artificially inflated that could improve the the Michi- last year and the track Detroit Business from its Trick-Trick, retired radio icon prices for health care ser- headed into traditionally quality of life for sick, in- gan Venture founding in 1985 until Dick Purtan, Detroit Red Williams vices.” light November and De- jured and needy pediatric Capital As- 1993. Her media sales ca- Wings coach Mike Babcock, The plaintiffs are asking cember. Live racing ended patients at Children’s Hospi- sociation. He’s credited with reer began with radio sta- novelist Elmore Leonard, re- for damages of three times Oct. 31. tions WJR-AM and WOMC- tal and Henry Ford Hospitals. turning around the Universi- tired developer A. Alfred the amount of their loss Troy-based Flagstar FM. After her time at For more on the creation ty of Michigan spinoff that Taubman, Beaumont Hospitals and to stop Blue Cross from Bancorp Inc. (NYSE: FBC) Crain’s, she sold residen- led to a $275 million sale to of CATCH, read Sherri CEO Gene Michalski, Willie negotiating and enforcing announced that it has com- tial real estate. New Jersey-based Becton, Welch’s blog at Horton of the Detroit Tigers most-favored-nation-type pleted a $400 million pub- Charles Welch Travis, www.crainsdetroit.com. and various media person- Dickinson & Co. in 2009. contracts. lic equity offering of 115.7 owner of Travis Associates After managing the alities including Nolan Also, Cerenis Therapeutics Michigan Attorney Gen- million shares of common and later Tri-Mode Industries, Cincinnati Reds to two Finley, Paul W. Smith and Inc., a company co-based in eral Mike Cox and the U.S. stock and 14.2 million died Nov. 1. He was 81. World Series titles in the Stephen Henderson. And, of Ann Arbor and France, will Department of Justice filed a shares of convertible pre- Richard Booth Wallace, 1970s, Anderson was hired course, Mitch Albom. be honored with the Michi- federal lawsuit in Detroit ferred stock, with net pro- an inventor and business- to coach the Tigers in 1979. The largely pro bono gan 100 Award for surpass- last month asking that the ceeds of about $385.8 mil- man who also was an heir He led the franchise to the campaign is the brainchild ing the threshold of $100 clauses to be removed. lion after expenses and to media moguls James E. 1984 championship, retired of Paige Curtis, whose million in venture capital Five Southeast Michi- underwriting fees. Scripps and George Booth, in 1995 and was inducted Bloomfield Hills-based The raised. gan health maintenance or- Troy-based Crestmark died Oct. 24. He was 89. DBpageAD.qxd 10/8/2010 2:35 PM Page 1 DBpageAD.qxd 10/29/2010 10:35 AM Page 1

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