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http://www.crainsdetroit.com Vol. 22, No. 44 OCTOBER 30 – NOVEMBER 5, 2006 $1.50 a copy; $59 a year

©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved THIS JUST IN Arcelor to own 40% Race for $15B military deal of Noble after deal Warren-based Noble Inter- national Ltd. said it has General Dynamics bids for Humvee replacement agreed to buy Tailored Blank Arcelor, a European produc- BY SHEENA HARRISON The U.S. Army and U.S. Marine er of laser-welded blanks, CRAIN’S DETROIT BUSINESS Corps want to develop a family of for $300 million in cash and “joint light tactical vehicles” stock in a transaction that Sterling Heights-based General (JLTVs) that can carry more would make its parent Dynamics Land Systems is gearing troops and provide more protec- company, Arcelor S.A., a 40 up to compete for as much as $15 tion than the Humvee. percent owner of Noble. billion from a military program to General Dynamics is one of at The deal will create a develop a replacement vehicle for least three major defense contrac- $1.1 billion producer of some of the 150,000 Humvees now General Dynamics’ laser-welded blanks with a used by U.S. forces. See Vehicle, Page 22 proposed replacement. presence in both the U.S. and Europe. “This potential transaction represents a major milestone for both Noble and TBA in terms of creating a financially sound and true global supplier of en- That’s the gineered laser-welded blanks and specialty tubes,” Noble Chairman Robert Skandalaris said in a statement. Tailored Blank Arcelor ticket is among Europe’s largest producers of laser welded blanks for the automotive industry. Laser welded New programs, blanks are used by au- tomakers and suppliers in automobile body compo- bonuses help lottery nents such as doors, fend- ers and side panels. reach record sales Noble (Nasdaq: NOBL) said the deal would create NEWSCOM BY AMY LANE a combined company with Carlos Guillen and the Detroit Tigers’ World Series games against the St. Louis Cardinals are on CAPITOL CORRESPONDENT 2007 sales of about $1.1 bil- broadcast television, but it’s a strong possibility there won’t be any local Tigers broadcasts in 2007. lion and earnings before LANSING — When Lottery Commissioner Gary interest, taxes, deprecia- Peters took his job in 2003, it struck him as odd that tion and amortization of the state employees sell- about $122 million. ing lottery products WINNING NUMBERS: Noble said it expects to weren’t getting incen- gain about $500 million in No free TV? tives like private-sector revenue and $53 million in salespeople. 34 EBITDA from Tailored As of 2006, they are. Years the lottery has BY BILL SHEA been played. Blank Arcelor. Noble, And in a business Despite CRAIN’S DETROIT BUSINESS where growth is a which last month an- nonstop chal- nounced its plans to acquire Despite being American League champions and World Se- lenge, steps like 70 Troy-based Pullman Indus- ries participants for the first time in 22 years, the Detroit Tigers success, performance Approximate tries Inc., was expecting 2007 may not be on free local broadcast television next season. number of bonuses and ag- sales of about $600 million. The team and cable partner Fox Sports Net Detroit, which instant-ticket gressive sales The deal calls for Noble’s Tigers may handled the broadcast deal with WMYD-Channel 20 for this games management, com- released each management team to re- season, have begun preliminary talks with stations interested in televising games for 2007, said Karen Cullen, vice pres- bined with new year. main in place with Thomas games and higher prize Saeli continuing as CEO be on cable ident of corporate communications for Ilitch Holdings Inc., Red Wings payouts, have helped the and Skandalaris will re- which owns both the Tigers and . Talks with radio 500,000 stations have begun, too. lottery reach sales Number of tickets to be main chairman of the The key factor in negotiating a broadcast TV deal is the records amid a sputter- released next month board and Arcelor would only next Tigers’ success. The team believes its games are worth more, ing economy and casino- with the best odds ever become Noble’s largest but station executives are skeptical of any significant boost. gambling competition. of a $1 million prize. shareholder. There’s a very real chance the Tigers could be off the free The just-ended 2006 fis- — Brent Snavely year local airwaves in 2007, as they were in 2004 and 2005, those in- cal year marked the third consecutive year of lot- See This Just In, Page 2 tery sales records, thanks in part to the 2003 launch See Tigers, Page 25 See Lottery, Page 25

Contract dispute threatens CRAIN’S LIST marriage of DMC, Wayne Largest home builders, NEWSPAPER State med school, Page 11 Page 16 DETROIT BUSINESS MAIN 10-30-06 A 2 CDB 10/27/2006 6:50 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 30, 2006

transactions to happen for the The law firm and affiliated hopes to break ground in Decem- Florine Mark gives $2M for THIS JUST IN second half of this year,” he said. companies plan to take about ber or January, and the project Brewery Park is owned by 165,000 square feet of the 185,000- should be completed by early fall. sports, fitness complex ■ Crain Communications Inc square-foot building, moving 650 From Page 1 . and — Anjali Fluker The Jewish Federation of Metro- Brewery Park Associates, a partner- employees in during late spring politan Detroit on Friday an- Wayne County chief to lead ship of Stroh Properties and a Kirco or early summer 2007. The re- nounced a $2 million gift from Development affiliate. maining 20,000 square feet is Welch named interim leader trade delegation to China Weight Watchers President and — Michelle Martinez available for lease, and the build- of State Bar of Michigan Wayne County Executive ing at 31440 Northwestern High- CEO Florine Mark. Robert Ficano will lead a trade way will get a new name. Janet Welch, general counsel The gift will support the opera- delegation to Chinese manufac- Latest campaign filing: — Jennette Smith for the Lansing-based State Bar of tion of the 100,000-square-foot turing cities Chongqing, Wuhan, DeVos $19.7M, Granholm $2M Michigan, was appointed interim Florine Mark Sports and Fitness Nanjing and Beijing from Nov. 8 executive director for the associ- Complex and the new Jean and to Nov. 21. Republican gubernatorial can- YMCA to run GM fitness center ation effective Oct. 23. Samuel Frankel Jewish Academy Business delegates, including didate Dick DeVos raised nearly General Motors Corp. has hired She will oversee operations of of Metropolitan Detroit currently Wayne County Airport Authority Pres- $19.7 million in the most recent YMCA of Metropolitan Detroit to the association, which has 32,000 under construction. ident and CEO Lester Robinson campaign finance period, includ- manage a fitness center it plans lawyer members. Welch will also — Sherri Begin and Detroit Regional Chamber Vice ing $18.4 million of his own mon- to open in the GM Renaissance serve on the team seeking a new President John Carroll, will meet ey, and he spent nearly $18.3 mil- Center in January. director by early next year. with prospective business part- lion, according to campaign The new center, on the first She steps in for John Berry, who Grand opening celebration is ners and government agencies. reports filed Friday. floor of the GM Wintergarden in left Oct. 20 for The Florida Bar. Friday for TechTown tenant For more information, contact Gov. Jennifer Granholm raised Tower 300, will be open to the pub- — Robert Ankeny Olivia Deng at (313) 224-0267, or at just over $2 million in the period lic with paid membership, said TechTown, the Wayne State-affili- [email protected]. and spent $6.4 million, according John Harris, director of the Boll Concours d’Elegance founder ated technology park and incuba- — Michelle Martinez to a news release from her cam- Family YMCA in Detroit. He de- tor, will hold the grand opening paign. Her filing was not avail- clined to disclose contract details. turns over reins of event Friday for its first retail tenant, able on the Department of State’s — Sherri Begin the Java Exchange Café, with a Blues to lease space in Don Sommer, founder of the Web site as of 6 p.m. Friday. day-long series of events. Brewery Park building — Amy Lane Meadow Brook Concours d’Elegance, Auburn Hills planners to mull last month stepped down as chair- “The launch of this innovative Blue Cross Blue Shield of Michi- man after 28 years. eatery is a significant milestone gan on Friday signed a four-year Redico will manage hotel for Baldwin, I-75 Sommer, 73, handed the chair- for TechTown,” Howard Bell, lease on the second floor of Brew- new Trott & Trott HQ building The Auburn Hills Planning Com- manship of the Meadow Brook TechTown’s executive director, ery Park Phase II building at 1155 mission this week is expected to Hall fundraiser to Larry Smith, said in a release. “It confirms that Gratiot Ave. to group together Law firm Trott & Trott P.C. an- consider a plan for a 90-room Holi- president of Autometric Collision. we have generated a business com- employees that had been working nounced details of its upcoming day Inn Express Hotel & Suites on Smith, 55, has served for many munity so successful, it is attract- across several different Detroit move to the former Compuware Baldwin Road at I-75. years as a judge, committee mem- ing retail tenants to serve the hun- office buildings. Corp. headquarters in Farming- Basil Bakal, partner in Com- ber and participant in the event. dreds of employees.” Blues Media Relations Director ton Hills. merce Township-based Great — Sherri Begin — Tom Henderson Helen Stojic said that she did not Last month, Trott & Trott pur- Lakes Hospitality Investment L.L.C., have an estimate for how many chased the former headquarters said plans include an indoor pool, employees would move to the loca- with partner Redico L.L.C. Trott & spa, exercise facility, complemen- CORRECTIONS tion immediately available Friday Trott is the majority owner. Redi- tary hot breakfast, wireless high- ■ A story on Page 13 of the Oct. 23 issue should have stated that afternoon. But A.J. Weiner, vice co will provide space planning, speed internet and courtesy shut- Jacqueline Sellers, partner at Clark Hill plc in Detroit, has two daugh- president of Trammell Crow Co. in construction services and build- tle to Great Lakes Crossing, among ters, not one daughter and one son. Also, a box accompanying the sto- Detroit, the leasing agent for ing management. Bingham other amenities. Total cost on the ry incorrectly referred to McNeese State University of Lake Charles, La., Brewery Park II, said the Blues Farms-based Scarcello Associates project is yet to be determined, as a historically black college. McNeese State is not a historically were leasing 40,440 square feet. Inc. is consulting on interior de- Bakal said. black college, according to the White House Initiative on Historically “It’s one of the largest new sign and space planning. If approved, Bakal said he Black Colleges and Universities.

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October 30, 2006 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Developer wants INDEX to offer retail skills Expanding hopes: Group Training center would be at Gateway Park that wants to expand Cobo for mixed use sets BY SHEENA HARRISON mated 700 workers needed for a center the size of first meeting. Page 23. CRAIN’S DETROIT BUSINESS Gateway Park. Other retailers in metro Detroit Tech in town: Michigan also would be able to send their employees for Tech looks to expand A Chicago developer is trying a new tactic to presence in region. training at the center. Page 23. lure major retailers to The Shoppes at Gateway “This is basically an entity created by the re- Park in Detroit: It wants to create a training cen- tail industry,” said Lyneir Richardson, General ter that will certify potential employees in retail Growth’s vice president of urban land develop- These organizations appear in this skills such as customer service, sales and man- ment. “The thought was this was somebody they week’s Crain’s Detroit Business: Branding agement. (the retailers) would respect and the certification Similar centers operated by the Washington- and training they provide.” 21st Century Jobs Fund ...... 6 based National Retail Federation Foundation have Richardson, who developed General Growth’s AA Mortgage Corp...... 24 opened at shopping centers in Miami, Atlantic urban retail strategy about three years ago, said Accreditation Council of Graduate City and Philadelphia. one of the strategy’s focal points is workforce de- Medical Education ...... 11, 12 Altarum Institute ...... 21 General Growth Properties Inc., a Chicago-based velopment. Retailers are “concerned that there’s e t American International Auto Show . 21 t real estate investment trust that’s trying to sign an a less experienced workforce in cities,” he said. Archer Corporate Services L.L.C.. . . 24 r anchor tenant for the proposed 325,000-square foot D “They’re concerned that the employee base will i Assoc. Food & Petroleum Dealers. . . 25 retail center near the Michigan State Fairgrounds, o require a greater training effort.” Automation Alley ...... 1 Campaign to reach hopes such a center will help attract retailers. General Growth has partnered with the founda- Beaumont Hospitals ...... 12, 15 It wants to partner with the retail foundation Bieri Co...... 24 to open a skills center to train and certify the esti- See Gateway, Page 24 Bureau of State Lottery ...... 25 people in 20s, 30s Coalition Fueling Michigan’s Future 21 Detroit Auto Dealers Association. . . 21 Detroit City Council ...... 21 won’t be traditional Detroit Economic Growth Corp. . . . . 23 DMCVB ...... 3 Detroit Red Wings ...... 1, 25 BY JENNETTE SMITH Detroit Regional Chamber...... 21 CRAIN’S DETROIT BUSINESS Detroit Tigers ...... 1, 25 Detroit/Wayne Port Authority . . . . . 21 The team behind the launch of a new brand to Downtown Detroit Partnership . . . . 23 promote Detroit to young adult visitors is start- Fox Sports Net Detroit ...... 1 ing with a fresh sheet of paper. General Dynamics Land Systems. . . . 1 Actually, it’s more like a fresh set of podcasts, General Growth Properties Inc., . . . . 3 blogs and guerrilla-marketing tactics, because peo- H.L. Gedrich and Associates Inc . . . 24 ple in their 20s and 30s don’t respond very well to Henry Ford Health System. . 12, 13, 14 overt advertising. Leaders and consultants for the Ilitch Holdings Inc...... 1 Detroit Metro Convention & Visitors Bureau say this Innovation Emporium Inc...... 21 campaign is all about authentic Kellum Community Housing ...... 3 Kellum Mortgage ...... 3 messages and stories to back Michigan Civil Service Commission . 25 them up and not about slick slo- Mich. Defense & Gov. Contract. . . . . 6 gans or the usual slew of tradi- Michigan Dept. of Comm. Health . . 13 tional advertising. Michigan DEQ ...... 6 Christopher Baum, senior MEDC ...... 6 vice president of sales and mar- Mich. Mortgage Brokers Assoc. . . . 24 keting for the bureau, said Michigan State University...... 1 while it can be challenging to Michigan Technological University1, 21 develop the right strategy for 21- Museum of Contemporary Art Detroit. . 23 National Retail Federation Baum 34 year olds, he is encouraged that community stakeholders Foundation...... 3 agree about trying something completely new. Noble International Ltd...... 1 “You need to entertain and educate in a way Oakwood Healthcare Inc...... 12, 15 that’s not too overt,” he said. “It’s liberating be- Paxahau Promotions Group L.L.C. . . 23 cause you can take directions JOHN F. MARTIN Pullman Industries Inc...... 1 Anthony Kellum says a number of factors led to the demise of his mortgage company. Renaissance Strategies ...... 21 you never would have taken in INSIDE Simons Michelson Zieve Inc...... 25 the past. They enjoy humor and SSOE Inc...... 15 Real estate things that are too edgy for the St. John Health...... 12, 15 forum bolsters broader audience.” cause for Tailored Blank Arcelor ...... 1 downtown Unlike other cities with newer The Berline Group...... 24 retail. See campaigns that seem to fall flat, ‘I got caught up’ The Detroit Medical Center . . . . 11, 12 story, Page 23. such as Seattle’s “Metronatural” Tourism Economic Develop. Council. . . 3 or Baltimore’s “Get in on it,” United Equity Mortgage L.L.C...... 24 Baum said Detroit is determined to get it right. BY SHEENA HARRISON islation that limited his profits, a Wayne State Board of Governors . . . 12 “The brand and the stories behind it are the Kellum wasn’t CRAIN’S DETROIT BUSINESS family crisis and overextending WSU School of Medicine...... 11 most important thing,” he said. “Slogans can himself with community programs Wells Fargo Home Mortgage ...... 24 come and go. How we deal with the slogan issue able to keep Anthony Kellum wanted to help that caused Kellum Mortgage to file WMYD-Channel 20 ...... 1 is yet to be determined but we are looking very the little guy. for Chapter 7 bankruptcy in August. As president and owner of South- carefully to take the right approach.” “It was a strain on my business,” BANKRUPTCIES ...... 6 his mortgage field-based Kellum Mortgage Finan- Detroit’s current brand effort is based on hard Kellum said. “You try to provide a BUSINESS DIARY ...... 20 cial Services Inc., Kellum had built data about Detroit’s strength with younger visi- need to a marketplace that’s under- CALENDAR ...... 20 company his business on providing loans to tors, and its standing as an adult destination in- served. So it was tough.” CAPITOL BRIEFINGS ...... 6 people who often were buying their cluding draws like nightlife, music, professional Kellum Mortgage has joined an CLASSIFIED ADS...... 18 first homes. He branched out to ed- sports teams and casinos. alive, but he’s increasing number of small busi- EARNINGS ...... 4 ucate people about the benefits of “The content Detroit offers is pretty well- nesses that have closed, according KEITH CRAIN ...... 8 matched to this younger audience,” said Jim home ownership through semi- to the U.S. Small Business Administra- still putting LETTERS ...... 8 Townsend, executive director of the Tourism Eco- nars, a television show, his non- tion. Nearly 27,000 small businesses MARY KRAMER...... 9 nomic Development Council. “They look for authen- profit Kellum Community Housing closed or were sold in 2005, a 9.7 OPINION ...... 8 tic experiences, not prepackaged, stage-managed people into and other means. percent increase from 2004 accord- PEOPLE ...... 17 experiences. Detroit is as real as it gets. There’s a For a while, it worked. But in the ing to the SBA. homes end, Kellum says it was a combina- RUMBLINGS...... 26 See Tourism, Page 23 tion of a tough housing market, leg- See Kellum, Page 24 WEEK IN REVIEW ...... 26 DETROIT BUSINESS MAIN 10-30-06 A 4 CDB 10/27/2006 5:49 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 30, 2006 EARNINGS American Axle & Mfg. NYSE: AXL Earnings per share ...... $.55 $1.12 9 months 9 months Revenue ...... $ 9,885,502,000 $9,562,935,000 3rd Quarter Sept. 30 2006 2005 Revenue ...... $303,845,000 $264,905,000 Net income ...... $695,883,000 $917,374,000 Revenue ...... $701,200,000 $848,100,000 †Net income ...... $51,851,000 $59,481,000 Earnings per share ...... $2.69 $3.49 Net income ...... ($62,900,000) $19,300,000 Earnings per share ...... $1.62 $1.84 Earnings per share ...... $1.25 $.38 9 months †- 2005 net income includes a $25.4 million Ramco-Gershenson Properties NYSE: RPT after-tax gain from the sale of Kaydon’s Power and Revenue ...... $2,410,600,000 $2,534,700,000 3rd Quarter Sept. 30 2006 2005 Data Transmission Products Group. †Net income...... ($33,900,000) $51,500,000 Revenue ...... $ 38,815,000 $ 35,303,000 Earnings per share ...... ($.67) $1.01 Kelly Services Inc. Nasdaq: KELYA †FFO...... $ 13,499,000 $ 11,605,000 †- American Axle reported $115.8 million in spe- Earnings per share ...... $.63 $.59 cial charges and costs in the third quarter related to 3rd Quarter Oct. 1 2006 2005 9 months unemployment benefits to idled workers and for fu- Revenue ...... $1,418,804,000 $1,344,644,000 Revenue ...... $ 113,808,000 $108,715,000 ture layoffs. Net income ...... $17,818,000 $12,675,000 †FFO...... $ 40,585,000 $ 36,073,000 Earnings per share ...... $.49 $.35 Earnings per share ...... $1.88 $1.82 Amerigon Inc. Nasdaq: ARGN 9 months †- Funds from operations is a key measure of Revenue ...... $4,195,302,000 $3,905,883,000 profitability for a real estate investment trust. 3rd Quarter Sept. 30 2006 2005 Net income ...... $39,049,000 $25,946,000 Revenue ...... $12,729,000 $8,256,000 Earnings per share ...... $1.08 $.72 Taubman Centers Inc. NYSE: TCO Net income ...... $900,000 $878,000 Earnings per share ...... $.04 $.04 Lear Corp. NYSE: LEA 3rd Quarter Sept. 30 2006 2005 9 months Revenue ...... $138,913,000 $114,159,000 Revenue ...... $35,579,000 $25,775,000 3rd Quarter Sept 30 2006 2005 †FFO ...... $47,287,000 $37,823,000 Net income ...... $2,484,000 $1,794,000 Revenue ...... $4,069,000,000 $3,986,600,000 Earnings per share ...... $.57 $.46 Earnings per share ...... $.11 $.08 †Net income...... ($74,000,000) ($750,000,000) 9 months Earnings per share ...... ($1.10) ($11.17) Revenue ...... $416,210,000 $343,522,000 BorgWarner Inc. NYSE: BWA 9 months †FFO ...... $141,817,000 $126,957,000 Revenue ...... $13,558,400,000$12,691,900,000 Earnings per share ...... $1.72 $1.55 3rd Quarter Sept. 30 2006 2005 †Net income...... ($62,500,000) ($778,900,000) Revenue ...... $1,059,800,000 $1,050,900,000 Earnings per share ...... ($.93) ($11.60) †- Funds from operations is a key measure of profitability for a real estate investment trust. Net income ...... $39,200,000 $61,400,000 †-Lear reported restructuring charges totaling Earnings per share ...... $.68 $1.07 $46.1 million during the third quarter ending Sept. 9 months 30 and $777.7 million in restructuring charges dur- United American Healthcare Nasdaq: UAHC Revenue ...... $3,383,700,000 $3,245,800,000 ing the same period last year. Net income ...... $170,700,000 $174,900,000 1st Quarter Sept. 30 2006 2005 Earnings per share ...... $2.95 $3.05 Revenue...... $4,174,000 $4,508,000 Michigan Heritage Bancorp OTC: MHBC Net income ...... $332,000 $403,000 Earnings per share ...... $.04 $.05 Clarkston Financial Corp. OTC: CKSB 3rd Quarter Sept. 30 2006 2005 3rd Quarter Sept. 30 2006 2005 Revenue...... $3,991,000 $3,345,000 UnitedAuto Group Inc. NYSE: UAG Revenue...... $3,721,000 $3,040,000 Net income ...... $221,000 $254,000 Net income ...... $104,000 ($685,000) Earnings per share ...... $.14 $.16 3rd Quarter Sept. 30 2006 2005 Earnings per share ...... $.09 ($.35) 9 months Revenue ...... $3,080,604,000 $2,675,289,000 9 months Revenue ...... $10,609,000 $9,471,000 Net income ...... $33,873,000 $32,764,000 Revenue ...... $10,450,000 $8,735,000 Net income ...... $727,000 $733,000 Earnings per share ...... $.36 $.35 Net income...... ($447,000) ($390,000) Earnings per share ...... $.47 $.47 9 months Earnings per share ...... ($.57) ($.36) Revenue ...... $8,661,489,000 $7,662,835,000 Noble International Ltd. Nasdaq: NOBL Net income ...... $ 94,802,000 $88,852,000 Compuware Corp. Nasdaq: CPWR 3rd Quarter Sept. 30 2006 2005 Earnings per share ...... $1.01 $.95 2nd Quarter Sept. 30 2006 2005 Revenue ...... $93,170,000 $89,099,000 Revenue ...... $288,507,000 $292,646,000 Net income ...... $2,447,000 $1,520,000 Universal Truckload Services Nasdaq: UACL Net income ...... $24,809,000 $24,190,000 Earnings per share ...... $.17 $.11 3rd Quarter Sept. 30 2006 2005 Earnings per share ...... $.07 $.06 9 months Revenue ...... $171,907,000 $135,637,000 6 months Revenue ...... $303,099,000 $267,445,000 †Net income ...... $5,765,000 $4,645,000 Revenue ...... $584,825,000 $589,974,000 Net income ...... $9,994,000 $9,120,000 Earnings per share ...... $.36 $.29 Net income ...... $54,130,000 $48,813,000 Earnings per share ...... $.71 $.65 9 months Earnings per share ...... $.15 $.13 Revenue ...... $477,798,000 $384,098,000 Oxford Bank Corp. OTC: OXBC †Net income ...... $15,723,000 $12,513,000 Johnson Controls Inc. NYSE: JCI 3rd Quarter Sept. 30 2006 2005 Earnings per share ...... $.97 $.83 4th Quarter Sept. 30 2006 2005 Revenue...... $7,871,000 $7,061,000 †- Acquisitions completed during the fourth quar- Revenue ...... $8,150,000,000 $6,900,000,000 Net income ...... $829,000 $1,129,000 ter of 2005 and first three quarters of 2006 con- Net income ...... $360,000,000 $283,000,000 Earnings per share ...... $.65 $.88 tributed about $15.9 million in revenue. Earnings per share ...... $1.82 $1.45 9 months 12 months Revenue ...... $23,287,000 $20,048,000 Valassis Communications Inc. NYSE: VCI Revenue ...... $32,235,000,000$27,479,000,000 Net income ...... $2,840,000 $3,072,000 3rd Quarter Sept. 30 2006 2005 Net income...... $1,028,000,000 $909,000,000 Earnings per share ...... $2.22 $2.40 Revenue ...... $248,883,000 $266,086,000 Earnings per share ...... $5.23 $4.68 Net income ...... $6,622,000 $21,305,000 Pulte Homes Inc. NYSE: PHM Earnings per share ...... $.14 $.42 Kaydon Corp. NYSE: KDN 3rd Quarter Sept. 30 2006 2005 9 months 3rd Quarter Sept. 30 2006 2005 Revenue ...... $3,563,959,000 $3,794,172,000 Revenue ...... $757,121,000 $821,797,000 Revenue ...... $99,676,000 $85,870,000 Net income ...... $190,219,000 $395,421,000 Net income ...... $44,368,000 $75,071,000 †Net income ...... $17,558,000 $37,184,000 Earnings per share ...... $.74 $1.50 Earnings per share ...... $.93 $1.47

Supplier Collins & Aikman STREET TALK may sell itself bit by bit THIS WEEK’S STOCK TOTALS: 45 GAINERS, 26 LOSERS, 9 UNCHANGED 10/27 10/20 PERCENT Troubled auto supplier Collins & CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE INDUSTRIAL STORAGE / Aikman Corp. may decide to sell off 1. Champion Enterprises Inc. $9.09 $7.86 15.65 its operations in pieces rather WAREHOUSE & DISTRIBUTION 2. Noble International Ltd. 18.98 16.56 14.61 than emerge from Chapter 11 reor- 3. Lear Corp. 31.11 28.35 9.74 ganization as a stand-alone compa- 4. Kaydon Corp. 42.46 39.04 8.76 Over 500,000 sq.ft. ny, CEO Frank Macher said 5. Covansys Corp. 22.76 21.32 6.75 Wednesday. Machinery, Dies, Fixtures, Racks, Parts, Etc. 6. Agree Realty Corp. 35.96 34.05 5.61 Macher said the company began 7. North Pointe Holdings Corp. 10.10 9.63 4.88 10 Truck Docks & On-site Rail Loading considering that option after pro- 8. Ford Motor Co. 8.29 8.01 3.50 duction cuts by Big Three cus- 9. Borders Group Inc. 20.31 19.64 3.41 tomers. 10. TRW Automotive Holdings Corp. 26.21 25.35 3.39 Actions at the Chrysler Group 10/27 10/20 PERCENT came as a particular surprise. The CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE automaker has been struggling for 1. Universal Truckload Services Inc. $26.70 $27.24 -1.98 several months to reduce high in- 2. BorgWarner Inc. 58.25 59.55 -2.18 ventories, particularly pickups 3. ProQuest Co. 12.69 12.98 -2.23 and SUVs. 4. United American Healthcare 8.33 8.55 -2.57 In response, Collins & Aikman 5. Energy Conversion Devices Inc. 36.49 37.57 -2.88 is reviewing its options to see 6. Rockwell Medical Technologies 7.24 7.46 -2.95 whether it might make more sense www.decnow.com 7. Meadowbrook Insurance Group 11.68 12.04 -2.99 to sell the company in pieces 38 8. Community Central Bank Corp. 11.02 11.50 -4.17 Detroit, Michigan / (313) 897-2277 ext. 2 rather than as a whole, Macher 9. Dearborn Bancorp Inc. 22.21 23.35 -4.88 said. The supplier of plastic parts, Email: [email protected] 10. Valassis Communications Inc. 16.50 17.39 -5.12 interior components and fabrics ISO 9002 / QS 9000 has been in Chapter 11 since May Source: Bloomberg News. From a list of publicly owned companies with headquarters REGISTERED in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading 2005. at less than $5 are not included. — Crain News Service DBpageAD.qxd 9/7/2006 10:55 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS October 30, 2006 State on the lookout for defense-contract czar

LANSING — Michigan And yet we know that contracting center, manage its ac- State officials worry that tax while the state School Aid Fund is is on the hunt for an exec- here in this state we have tivities, network at the federal lev- down about $148 million from utive seasoned in federal many companies that can el to open up new procurement op- collections are running short year-to-date projections. contracting to lead a new do the work of the defense portunities for businesses, and They’re not ringing alarm bells The Senate Fiscal Agency says tax collections have fallen short of es- $10 million defense-con- department. And we’re monitor federal legislation and yet. But state officials are con- timates by about $130 million — tracting program. looking to help them con- procurement and research and de- cerned about recent revenue in- $90 million in the school fund and The official will help nect better,” said Mike take that’s been lower than expect- velopment trends. $40 million in the general fund. state companies win feder- Shore, chief communica- ed, and say October revenue The director will also oversee a Although the 2006 fiscal year al defense and homeland- tions officer for the Michi- figures coming out in the next cou- to-be-developed loan fund for man- ended Sept. 30, October collections security contracts, gan Economic Development ple weeks will be important indica- ufacturers that need to expand from Michigan’s major taxes ac- through a Michigan De- Corp. tors of any potential shortfall for CAPITOL BRIEFINGS their operations to fulfill federal crue back to the just-ended year, as fense & Government Con- The state is offering an the 2006 fiscal year. Amy Lane does some tax revenue in Novem- tracting Center prescribed annual salary of $95,000 to procurement contracts. As of revenue received through ber. in 2005 legislation creating the $120,000 for the center director, The Jobs Fund legislation called the end of September, the House “We are definitely watching the state’s 21st Century Jobs Fund. who will work at the MEDC’s for up to half of the program’s $10 Fiscal Agency calculates the state’s revenue intake. We are concerned “We as a state have never really Lansing headquarters. The direc- million to go toward the low-inter- general fund is running about $57 about the numbers, and we will gotten our share of defense dollars. tor will create a strategy for the est loans. million below revenue projections, continue to watch them,” said Greg Bird, press secretary in the state budget office. Lower-than-projected sales- and use-tax collections are a key cul- prit, and another area of potential shortfall is the state education property tax. In the context of some $20 billion in estimated revenue for the year, a shortfall of $130 million to $205 million is at most 1 percent and is not the largest that the state has had to erase. Items like unspent departmental funds and some $34 million the state will receive in a recent Med- icaid lawsuit settlement can also play into the revenue picture, lead- ing up to the official December close of the fiscal 2006 books. However, one revenue piece that will not be booked for fiscal 2006 and will again stretch into another fiscal year is the $31.5 million sale of the state’s Northville Psychiatric Hospital site, amid continuing liti- gation over the sale. Amy Lane: (517) 371-5355, alane@ crain.com

MDEQ announces new permit The Michigan Department of Envi- ronmental Quality this month announced the availability of a new permit expected to help prevent in- vasive aquatic species from entering the Great Lakes. The new Ballast Water Control General Permit requires oceango- ing vessels to treat ballast water before entering Michigan ports, according to a news release. All vessels must be covered by a DEQ permit for port operations in the state beginning when the St. Lawrence Seaway opens for the 2007 shipping season, the release said. — Anjali Fluker

BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit October 20-26. Under Chapter 11, a company files a reorganization plan that the court must approve. Chapter 7 in- volves total liquidation. Simon Professional Services P.C., dba Hoffman & Simon P.C., 8617 15 Mile Road, Sterling Heights, voluntary Chapter 7. Assets and liabilities not available. The Financial Warehouse Inc., dba My Check Cashing Express & Bill Pay- ment Center, 20300 Civic Center Drive, Suite 211, Southfield, voluntary Chapter 11. Assets and liabilities not available. — Compiled by Bowdeya Tweh DBpageAD.qxd 10/17/2006 2:39 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS October 30, 2006 OPINION Incentives = results ccountability matters. So do incentives. That’s the lesson state Lottery Commissioner Gary A Peters is preaching. We hope other government de- partments take heed. As Amy Lane reports on Page 1, the lottery has reached sales records in a crummy economy and with expanded casino-based competition. Lottery sales hit a record $2.2 billion for the fiscal year that just ended Sept. 30. How did Peters do it? He began paying sales bonuses to state employees who place gambling machines in retail shops and bars and restaurants. He also required that lottery employees stock the games and han- dle in-store displays. The strategy worked. We’re not crazy about gambling in general, but we admire the fresh thinking Peters, a former state lawmaker and investment adviser, brought to his lottery job. And it’s not unlike the philosophy Adrian College Presi- dent Jeffrey Docking brought to that small private college in southern Michigan. As Crain’s reported Oct. 23, Docking gave responsibility for recruiting new students to coaches and some faculty. Failing to meet goals could result in the loss of his or her job. In two years, freshman enrollment has jumped from 320 students to 469 this fall. Whoever wins the governor’s race, take note: It’s time to put more incentives into government to achieve the desired re- LETTERS sults — or face the consequences. No on Proposals 2 and 5 Time for an intervention Editor: ers understand a more accurate Crain’s Detroit Business Michigan’s election is just eight days away, and some of representation of our overall fi- Mary Kramer’s Oct. 16, column, welcomes letters to the editor. our election recommendations are worth repeating. Specifical- “Board intervention needed at All letters will be considered for nancial picture. Our finances in- ly, we recommend “no” votes on Proposals 2 and 5. WSU-DMC,” is absolutely correct. publication, provided they are cluded unrealized gains in fiscal 2003 of $616,142, which left our or- Proposal 2 would bar governments and universities from I have been worried and offered signed and do not defame any help I could give to Mike Dug- ganization with a balance of expressing “preference” in any programs or bidding process- individuals or organizations. gan when this problem with Detroit Letters may be edited for length $189,725. In fiscal 2004, we reported es. Michigan’s sole public-policy focus should be on its econo- Medical Center/Wayne State Uni- and clarity. $511,777 in unrealized gains, which left us with a balance of $331,310. my. If this poorly written measure passes, it would unleash a versity medical school started over Write: Editor, Crain’s Detroit I appreciate the time that volley of legal challenges that would divert time, money and a year ago with the orthopedics de- Business, 1155 Gratiot Ave., partment. It is now too big a prob- Detroit, MI 48207-2997. Crain’s took to spotlight the na- attention from the core economic issues the state faces. tional changes that our organiza- lem to be solved by the dean of the E-mail: [email protected] Proposal 5 would increase base spending on K-12 education medical school and Duggan. tion is going through. It is a very and guarantee future annual increases commensurate with in- Jane Iacobelli exciting time for Girl Scouting, Trustee enue of $3.5 million in fiscal 2005, and it is also a time for the commu- flation. It’s a bad idea to put this type of guarantee in the state Children’s Hospital of Michigan up from $2.5 million the year be- nity to have every confidence that constitution and out of the hands of elected lawmakers. Be- Detroit fore, and a 2005 operating excess of we will continue to build girls of sides, the problem is not that Michigan fails to spend enough Not the full picture nearly $594,000 after two years of courage, confidence, and charac- on education. We spend a greater percentage on overhead and operating at a deficit.” The tax re- ter, who make the world a better Editor: turns for fiscal 2003 and 2004 show place. We are going through a administration than almost every other state. None of the Prop I would like to make a clarifica- that the investment income our or- transformation that will make Girl 5 money would be guaranteed to be spent in the classroom. tion regarding your publication’s ganization posted adds to the fi- Scouting even stronger than it is Still stumped about election choices? Crain’s election guide article titled “Girl Scout councils nancial picture of our organiza- today. can be found at www.crainsdetroit.com. In addition to sum- to consolidate, hope to cut costs,” tion. Ava Danner dated Sept. 18. While these numbers are accu- CEO maries of ballot proposals and a side-by-side comparison of the Girl Scouts of Macomb County-Otsikita Council Inc. It was mentioned that Girl rate when looking at them purely Clinton Township gubernatorial candidates’ stands on business-related issues, it Scouts of Macomb County-Otsikita from an operational standpoint, also has links to nonpartisan voter sites. Council Inc. “reported total rev- we feel it important that your read- See Letters, Page 9

KEITH CRAIN: There’s no good excuse for not voting There are simply too many ex- more research. The pro- TV will likely be about that we’re going to elect our U.S. shopping online with complete se- cuses to stay home. I have always posals aren’t pushed by politics. My guess is senator on the single issue of curity, then it won’t take a rocket considered voting to not only be a one side or the other. that radio is going to be garbage. scientist to figure out how we can privilege and a hard-fought right We also have a number saturated with political I’ve never been in favor of re- vote online. You could still go to but a responsibility as well. of judicial races that are ads as well. Although it stricting the rights of voters as the polling place, but electronic I must admit that I have a tough nonpartisan. would give the voter an they have in other countries, but I voting will simply be an additional time encouraging folks who are You have to do some opportunity to read do think that we have to encourage and more convenient way to vote. completely uninformed about the research to figure out more about the candi- voters to learn about the issues With our Secretary of State now candidates to get out and vote. An the best choices. And date’s positions in and candidates. Too many don’t allowing us to buy and register our important part of the privilege is there are plenty of print, we really don’t bother. Or they don’t believe a sin- cars, trucks and boats with a com- devoting time to figure out the is- places to go so that you see much political ad- gle vote matters, so they stay puter, it’s only a matter of time be- sues and understand how candi- can be an informed vot- vertising in newspa- home. fore we apply such technology to dates stack up against our own er. (Crain’s election pers. Maybe all they It’s just a matter of time before voting. I’m sure that the number of opinions. guide can be found at www.crains want is a simple catchphrase or is- we allow people to vote online citizens voting would climb dra- This year, we have a number of detroit.com.) sue. from their homes or offices. If we matically. It will happen within 10 ballot proposals that require even In the next week, the only ads on Personally, I would hate to think can spend thousands of dollars years. DETROIT BUSINESS MAIN 10-30-06 A 21 CDB 10/27/2006 5:47 PM Page 1

October 30, 2006 CRAIN’S DETROIT BUSINESS Page 21 Michigan Tech works to cultivate SE Michigan ties

BY SHERRI BEGIN ness in the Detroit area, he said. In 2006, only 3,145 out of 72,751 neering. It attracted 5,000 students CRAIN’S DETROIT BUSINESS YOUTH TECHNOLOGY EXPO The university plans to run planned to major in the field. its first year and 12,000 last year, short courses for its students at “It’s an important thing, strate- Reed said. Michigan Technological University NOV. 2 AT FORD FIELD the new site and continuing educa- gically, for us to increase the (stu- The New Detroit Science Center hopes its new Ann Arbor institute tion courses for professionals, dent) interest,” in engineering and has seen an increase in the num- and Nov. 2 Youth Engineering and Youth Engineering and Science Expo, an educational program Reed said. Students also will have science programs, Reed said. ber of companies supporting field Science Expo in Detroit will help managed by Michigan Technological opportunities for internships and The field continues to be very trips to the center for middle boost interest in related careers University, is holding a technology summer positions there. much in demand, he said. school and high school students and its sagging enrollment from expo at Ford Field on Nov. 2. “Southeast Michigan has always the region. “We’re having a record number from around the state, said Kelly The program’s goal is to inspire been very important to us; it’s the of companies coming to campus to Fulford, director of public rela- The Houghton-based university young people to study science and biggest single place where our stu- earlier this month agreed to buy for engineering. interview science and engineering tions and marketing. dents come from,” Reed said. students and to hire them.” That support has come from $1.4 million Altarum Institute’s Envi- Bill Nye, former host of the The number of metro Detroit Microsoft Corp., The Timken Co., companies including: all three do- ronmental and Emerging Technolo- syndicated television series “Bill students the Houghton-based uni- BNSF Railroad, Chicago Trading Co. mestic auto makers, Exxon Mobil gies Division in Ann Arbor, which Nye, the Science Guy” is the versity attracts has declined for featured guest. and Genie Industries visited Michi- Chemical Co., AC Delco, Charter One employs 24 and posts $4 million in the past five years. In 2002, 22 per- The event has programs at 7:30, gan Tech for the first time this Bank, Masco Corp. and Michigan First annual gross research revenue. cent of its 6,625 students came 8:30 and 11 a.m. Nye performs year to recruit its graduates, said Credit Union, and recently, $15,000 The new division’s strengths in from Southeast Michigan. This environmental applications, and shows at 9:30 a.m. and at noon. Marcia Goodrich, media-relations each from the Mazda Foundation and Sponsorship and exhibitor fall, that number was 15 percent, sensors and signal processing cov- manager for the university. the Nissan Foundation, she said. opportunities are still available for or 979 of its 6,544 students. ering every- the expo. For information, contact “With all the news from the auto More than 90 exhibitors, 29 uni- “More and more companies are thing from satel- Pete Cattelino, director of Yes industry, students are thinking versities and 20,000 teachers and recognizing the need to get kids ex- lite imagery to Expo and educational programs at science and engineering are not students are scheduled to attend cited about science and engineer- brain waves fits MTU at (906) 487-2228. Tickets good career paths,” Reed said. the sold-out Youth Engineering and ing at an early age before they tune well with some for the event are sold out, and “But engineering is much more Science Expo at Ford Field Nov. 2 out to the subjects they would need more than 20,000 students and of the universi- (See box). In its third year, the an- to study to go and major in them at teachers are scheduled to attend. than the auto industry.” ty’s research According to ACT’s High School nual event is hosted by Michigan the college level,” Fulford said. The expo is hosted by MTU in Tech and organized by Rochester- Sherri Begin: (313) 446-1694, programs, said partnership with Innovation Profile 2006 report for Michigan, David Reed, in- Emporium Inc., a Rochester-based 5,991 students of the 73,918 stu- based Innovation Emporium Inc. to [email protected] terim provost firm managing the event logistics. dents who took the test in 2000 inspire middle and high school Bowdeya Tweh contributed to Reed and vice presi- Major sponsors and exhibitors planned to major in engineering. students to study science and engi- this report. dent for research at Michigan include: Compuware Corp., General Tech. Motors Corp., Michigan Department of Labor and Economic Growth and The Michigan Tech Research In- Pulte Homes Inc. stitute presents an opportunity to — Bowdeya Tweh raise visibility and brand aware- Group wanting to expand Cobo to hold first meeting BY TOM HENDERSON same amount of federal funding. BecauseBecause you’reyou’re inin businessbusiness CRAIN’S DETROIT BUSINESS Paul Welday, founder of Renaissance Strategies, a Novi-based consulting At the Mackinac Policy Conference firm hired by DADA to promote the in May, a group funded by the Cobo expansion, was Knollenberg’s Troy-based Detroit Auto Dealers As- toto chief of staff from 1992-2002. MAKEMAKE MONEYMONEY sociation announced it would push Knollenberg inserted a request for a larger, mixed-use Cobo Center for funding into a transportation Introducing that would include both the 1 mil- bill that has passed the House but North lion square feet of space the not the Senate and is on hold until HIGH YIELD MONEY MARKET American International Auto Show after November elections. says it needs and room for other Matthew Resch, DeRoche’s press possible uses such as a charter FOR BUSINESS secretary, said state funding might school, alternate-energy research be in a supplemental budget bill af- laboratories and an incubator for ter state elections but more likely emerging high-tech companies. would be taken up next year. % Since then, things have moved The coalition is co-chaired by De- slowly. On Wednesday, the DADA- troit Deputy Mayor Anthony APY* supported group, the Coalition Fuel- ing Michigan’s Future, will hold its Adams and Charles Chambers, who 4.82AT THE $1,000,000+ DEPOSIT LEVEL retired in July as president of first meeting of stakeholders at the Interest Rate/Structure NextEnergy Center near Wayne State Southfield-based Lawrence Techno- Calculated daily on any balance, Paid monthly, Tiered structure: University to discuss who will be on a logical University and is on leave from † steering committee, what issues a his tenured post there as distin- $1,000,000+ = LIBOR less 0.50% feasibility study should address guished professor of science and $100,000-$999,999 = LIBOR less 1.00% once it’s funded and which consult- technology to serve on the coalition. $50,000-$99,999 = LIBOR less 1.50% ing firms should be considered to Chambers declined to say who $25,000-$49,999 = LIBOR less 2.00% $0-$24,999 = 0.50% APY conduct it. would attend the meeting, but said “I’d love to see it move along about 12 people would represent † Rates will normally adjust on the first business day of each month, based on the Detroit Regional Chamber, Wayne the 30-day London Interbank Offered Rate (LIBOR) on the last business day more swiftly, but trying to build a of the previous month. All APYs are accurate as of 10/2/06. coalition of people who are busy State, Detroit City Council, the Mayor’s every day takes time,” said Rod Al- Office, the Detroit/Wayne County Port berts, executive director of both Authority, Wayne County, Oakland DADA and the auto show. “If it County and major corporations. takes three or four months to get Chambers said at least one part Convenience you can count on. 15 or 20 of the right people, we just of the proposed project will be want to get it done right.” scaled back: An expanded Cobo Funding for the study also has could contain some R&D space, stalled in both Lansing and Wash- but the need for flexible space to (800) 642-0039 www.flagstar.com Member FDIC ington. State House Speaker Craig accommodate the auto show would DeRoche, R-Novi, said in May he preclude the kind of lab equipment *Annual Percentage Yield (APY) based on current 30-day LIBOR of 5.32% less 0.50% applies to accounts of $1,000,000+ and is accurate as of 10/2/06. would push for $50,000, and U.S. that would be difficult to move. Maximum allowable balance is $10 million. Account fees could reduce earnings. A fee of $25 will be imposed for every statement cycle in which the balance in Rep. Joe Knollenberg, R-Bloomfield Tom Henderson: (313) 446-0337, the account falls below $5,000 on any day of the cycle. Not available for public units. Rates may change after the account is opened. Certain restrictions may Hills, said he would push for the [email protected] apply. Please contact your local Flagstar branch for more information. DETROIT BUSINESS MAIN 10-30-06 A 22 CDB 10/27/2006 7:02 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS October 30, 2006 Vehicle: General Dynamics bids on Humvee replacement ■ From Page 1 tors selected nationwide to help other divisions. military vehicles, including the with Troy-based automotive sup- One such scenario could be if develop specifications for a tacti- General Dynamics is tapping lo- Stryker combat vehicle and the plier AxleTech International L.L.C. on South Bend, Ind.-based AM General cal vehicle to replace an estimated cal partners to support additional Abrams tank. the JLTV project. AxleTech could L.L.C., the maker of the Humvee, 40,000 Humvees now in service. research and development for the “We’re trying to take the same not be reached for comment late develops a variation of the vehicle Bethesda, Md.-based Lockheed mockup. Partners include Automa- principles that we applied in com- Friday. that gets selected rather than go- Martin Corp. and Oshkosh, Wis.- tion Alley, Oakland University’s Smart- bat vehicles and apply them to tac- It’s too early to tell what eco- ing with a newly developed vehi- based Oshkosh Truck Corp. also are Zone Business Incubator, Michigan tical vehicles,” said Brad Barnard, nomic impact the joint light tacti- cle, Lockwood said. helping developing specifications State University and Michigan Tech- business development manager cal vehicle program will have, said If this program moves forward, under the program. nological University. for advanced programs at General Dean Lockwood, a weapons sys- it could be an even bigger deal The Army and Marine Corps will “We’re doing whatever we can to Dynamics Land Systems. tems analyst with Forecast Inter- than the initial $15 billion for re- use all of the studies to create a set raise their pro- The company’s current concept national. search and development, Lexing- of final specifications for an open file on this,” said design includes motors in the vehi- Military initiatives that start off ton Institute COO Loren Thomp- bidding process next year. Contrac- Charles De- cle’s wheels rather than on its body, a high level of interest in the mili- son said. tors selected to research and devel- Vries, Automa- which opens up room in the vehicle tary community can sometimes “When you add in spare parts op the new vehicles should be se- tion Alley’s di- to hold more troops and provides fizzle out before contracts get and maintenance (for the vehi- lected in late 2007 or early 2008. rector of more protection from mine blasts. awarded, he said. cles), the total value could double,” If selected for ultimate develop- government af- The vehicle’s body includes a ba- “We’re adopting a ‘wait-and-see Thompson said. ment of the JLTV, General Dynam- fairs. sic armor package and the option attitude’ to see what comes out of Sheena Harrison: (313) 446-0325, ics would likely add to its current The initial to attach more armor as needed. this,” Lockwood said. [email protected] workforce, said Peter Keating, contract could “It really provides the soldier vice president of communications be worth as with the next level of performance DeVries and public affairs. The company much as $15 bil- and protection capability,” Bar- has 2,400 workers in Southeast lion, according to Forecast Interna- nard said. named Michigan Civil Rights Initia- Michigan, but Keating couldn’t es- tional , an aerospace and defense Kathryn Hasse, director of Tac- tive. It is funded by a guy from Cali- timate how much of the work forecasting firm based in New- tical Wheeled Vehicles at Lock- LETTERS CONTINUED fornia, Ward Connerly. We don’t would be done in this region. Gen- town, Conn., and the Lexington In- heed Martin Systems Integration ■ From Page 9 have to listen to his hateful ideas. eral Dynamics Land Systems is a stitute, a public policy research inin Owego, N.Y., said via e-mail Fri- Let’s give women a fighting chance. division of Falls Church, Va.-based stitute based in Arlington, Va. day that the company has an ad- a great time, bought a tank of gas Gabriel Thoumi General Dynamics, which reported General Dynamics believes it vantage because it already devel- and stopped at their favorite Hun- Ann Arbor revenue of $21.2 billion last year. has a good chance at winning such ops helicopters, airplanes and land garian hotdog place for lunch on The company does not break out a contract because the company vehicles. the way back through Toledo. The Support Prop 2 revenue for Land Systems or its develops and builds other types of She said Lockheed is working only problem with that economic Editor: impact was that it all happened in Jennifer Gratz was denied ad- Ohio. Mourning doves are a feder- mission to the University of Michi- ally regulated migratory game gan because she was white. The bird and Michigan mourning university then went on to spend doves are hunted in every state millions of dollars attempting to de- they migrate to and through. De- fend its decision before ultimately feating Proposal 3 won’t save any losing in the U.S. Supreme Court. doves, just provide momentum to- Whose money did they spend ward a larger agenda. and why? UM is a public institu- Here is some economic and po- tion and receives substantial fund- litical agenda information on the ing from the state. These state people sponsoring this effort: More funds are, of course, derived from than 75 percent of the funding for taxing all residents of Michigan, this campaign to compromise pro- yet in direct defiance of both the fessional wildlife management in U.S. Constitution and the Michi- Michigan comes from a single na- gan Constitution, UM sees fit to tional organization with clearly discriminate against more than 80 stated policies opposing all forms percent of its residents. of hunting and even life-saving UM says it’s fair to discriminate medical research, because rats are against non-black applicants be- people, too. cause it increases “diversity” and, So before anyone condemns the according to the school, “diversi- $3.5 billion-per-year economic im- ty” is a good thing. But what kind pact of hunting and fishing on the of diversity are they talking about? Michigan economy, make sure you When Jennifer Gratz applied, the find out the full agenda of those university had two sets of admis- you are supporting. sion standards: one for so-called Brian Preston Regional representative underrepresented minorities and National Wildlife Federation one for everyone else. Affordable health care options for any size business. Ann Arbor So their “diversity” was not of background, it was not of ideas, Vote no on Prop 2 and since Asians were subject to Editor: the same discrimination as Cau- Michigan is my home, and I casians, it wasn’t even of skin col- want to make it a fairer place for or. In fact, diversity had nothing to The top-rated health plan in Michigan everyone. do with the university’s racial offers you a variety of cost effective choices to meet your I care about Michigan’s future. double standards. The diversity health care benefit needs — all delivered by top-rated And affirmative action helps argument was simply a smoke- women because it gives them a screen for the liberals’ social-engi- physicians and hospitals. fighting chance. Affirmative ac- neering agenda. • Care Choices HMO tion helps women overcome It’s time for everyone to be Michigan’s pay equity gap. judged on their own merits, and • Care Choices PPO Women in Michigan only earn 67 it’s time to say yes to Proposal 2. cents for every $1 earned by a man. • Preferred Choices PPO Harry McKinney I oppose this stupid and mis- Troy • Consumer-directed plans For health care plans that fit your needs, try Care Choices on for size. Covansys ranks No. 8 on best companies to work for in India list To learn more, talk to your agent, Farmington Hills-based Covan- company has been ranked No. 8. call us at 800.261.3452 or visit sys Corp., a global IT services and Founded in 1985, Covansys (Nas- www.carechoices.com. consulting company, will be daq: CVNS) was one of the first ranked No. 8 of the best companies U.S. companies to establish off- to work for in India in the Nov. 5 shore facilities in India and now 53552 10/25/2006 issue of Business Today. has three call centers there. It is the second straight year the — Tom Henderson DETROIT BUSINESS MAIN 10-30-06 A 23 CDB 10/27/2006 4:12 PM Page 1

October 30, 2006 CRAIN’S DETROIT BUSINESS Page 23

DOWNTOWN DEMAND RISES Tourism: Campaign seeks to take different tack Detroit marketing efforts focused on economic development now ■ From Page 3 have some additional fuel. benefit there from an attraction or downloading.” MTV’s Web site, budget is spent next year. in the cultural center. At last week’s University of standpoint.” for example, would be the type of Jason Huvaere, president and Consultants on the Detroit Michigan/Urban Land Institute Baum said to reach potential visi- place the bureau would consider director of operations for Paxahau branding include The Berline Group Real Estate Forum, community tors, there will be podcasts, partner- placement on. Promotions Group L.L.C., an electron- and Lafayette, Calif.-based La leaders and researchers released new findings about retail and ships with blogs, Web advertising Another payoff when starting ic-music event-production compa- Brecque Cie. Baum said Berline is residential market demand. on select sites, regional TV spots, with a younger target is that the ny based in Ferndale, said he’s en- already working on images and Among the highlights: and other creative methods such as trend-setters tend to be followed by couraged that various entities ideas that will kick off the cam- guerrilla marketing teams that older travelers once a city starts related to attracting visitors to De- paign early next year, Baum said. ■ The expanded downtown area would physically get information getting good word-of-mouth buzz, troit are talking to each other as In the meantime, focus groups has a workforce of 193,000. If worker spending is estimated at about Detroit into the hands of Baum said. Plus, once a visitor is part of the branding process. are under way to validate the focus $1,800 a year, that translates to a prospects. Traditional print adver- sold on Detroit, there’s a better “I think it is headed in the right on younger visitors and an authen- spending potential of $350 million. tising will not be a major focus be- chance he or she will return. direction,” he said. Plus, the city tic Detroit including assets like ■ There is demand for 125,000 cause this demographic group gets “Eventually that 25-year-old is a has all the signs of making more history and music. square feet of grocery stores in more information online. 35-year-old,” Baum said. strides during the next few years “There’s a way to suggest the downtown and adjacent “They don’t get their information Branding funding includes as a destination. For example, Hu- creative spirit without being neighborhoods and 389,000 the same way Baby Boomers do. If I $200,000 budgeted for this year and vaere was in the midst of work last heavy-handed,” Townsend said. square feet of clothing, furniture, want to speak to them, I need to use it will be a heavy focus of how the week for the opening of the new Jennette Smith: (313) 446-0414, electronics and other non-grocery the platforms they are listening to bureau’s $2.5 million advertising Museum of Contemporary Art Detroit [email protected] shopping. ■ The market study area that runs north from the river north to the New Center area and east down Jefferson Avenue has median home values of $115,000, up 31 percent from 2006 census projections. The team behind the findings includes research firm Social Compact, The Brookings Institution, U-M, Detroit Economic Growth Corp. and Downtown Detroit Partnership. Matt Cullen, general manager of economic development and enterprise services for General Motors Corp., said the new data is important and will be part of the message about Detroit shared nationally. Advice from Philly Another speaker at the forum was Paul Levy, president of Philadelphia’s City Center District. Based on a rapid pace of redevelopment there since 1998, more recent marketing efforts promote stylish living. That’s thanks to a multipart redevelopment plan including cleaned-up streets, lighting, a new convention center and performing arts center and more. But years Mary Nichols, Wealth Management Client Advisor. ago, there were actually billboards that said, “Philadelphia isn’t as 18 years experience. Committed to delivering bad as Philadelphians say it is.” City and business leaders worked extraordinary client services. hard to reverse that way of thinking, and one of the first priorities after clean and safe streets was stimulating more retail and restaurants that stayed open after 5 p.m, Levy said. Shh… Michigan’s second-largest city, Grand Rapids, has opted for a subtle theme in its newest campaign that uses the slogan “Keep it a Secret.” The Grand Rapids Downtown Alliance hired Grand Rapids ad agency Hanon McKendry for a new campaign to promote the city. The initial point, said Bill McKendry, founder and chief creative officer, THE BEST IN MICHIGAN is to attract people who live in suburbs and aren’t venturing downtown. With assets like performing arts, museums and The highest compliment a Citizens Banker can receive is that he or she is “On the Ball.” Mary Nichols restaurants, city business leaders are using a platform that conveys and the Wealth Management Banking Advisors at Citizens are the reason we are the Best Wealth Management confidence and the message that those who live in the area should Banking team in Michigan. And they’re eager to prove it. Call Mary today and put Citizens to work for you. enjoy the city first before it is Call Mary at 248-293-3019. “discovered” by farther-flung visitors, McKendry said. “It’s sort of like coveting your favorite fishing hole,” he said. Let’s make it happen. “Keep it a Secret” is the signature tagline to support the overall campaign that has other supporting taglines like “Enjoy it Citizens Bank Private Banking offers products and services through various affiliates of Citizens Banking Corporation including Citizens Bank and Citizens Bank Wealth Management, N.A. Private Banking Now.” loan and deposit products are provided by Citizens Bank (member FDIC and equal housing lender). Private Banking trust services are provided by Citizens Bank Wealth Management, N.A. — Jennette Smith Non-deposit trust products are not insured by the FDIC, are not deposit or other obligations of Citizens Bank Wealth Management, N.A. or any of its affiliates, are not guaranteed by Citizens Bank Wealth Management, N.A. or any of its affiliates, and are subject to investment risks, including possible loss of the principal invested. DETROIT BUSINESS MAIN 10-30-06 A 24,25 CDB 10/27/2006 6:39 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 30, 2006 Kellum: Business, personal life collide; spell the end ■ From Page 3 Convincing people he cared appraisal values. Meanwhile, Kel- couldn’t make payroll and I didn’t lum’s various outside ventures know what to turn to,” he said. Kellum, 39, started his mortgage I think his big heart, and his also had taken a toll on the compa- company from his home in 1994 “ ny. At the end, a new beginning with a $10,000 loan from his father. perhaps inability to say ‘no’ Dennis Archer Jr. first became He worked previously as a loan of- friends with Kellum when he was Bankruptcy seemed to be the ficer for Michigan National Bank and because of the bigness of his general manager of three local ra- only answer after months of pro- Novi-based Tel-Com Credit Union in dio stations owned by Lanham, fessional and personal struggles the 1990s. heart, may have caused some of Md.-based Radio One Inc. The radio had put Kellum and his business He was inspired to work with stations ran promotional spots for in a financial hole. By the time and educate low- to moderate-in- his financial woes. Kellum’s “Home for the Holidays” Kellum Mortgage filed Chapter 7 come customers after a woman ” contest. on Aug. 1, the company claimed as- asked whether she could put a Dennis Archer Jr., Archer Corporate Services L.L.C. Archer said Kellum would pay sets of $5,000 and liabilities of home on layaway when he worked out-of-pocket for renovations or to $480,648. Kellum also filed for perfor Michigan National. Southfield-based appraisal compa- $2,000 on the same loan amount fund educational programs when sonal Chapter 7 bankruptcy pro- “I thought there was a greater ny H.L. Gedrich and Associates Inc., previously. sponsors or donors sometimes fell tection in July. need that I wanted to provide to met Kellum through the MMBA The legislation also made it diffi- through. Gedrich sees Kellum Mortgage’s the community,” Kellum said. “I and did a few residential real es- cult to sell loans to outside lenders “I think that his big heart, and downfall as an example of bigger figured through Kellum Mortgage tate appraisals for Kellum Mort- it previously worked with because his perhaps inability at times to mortgage industry problems. His that I would have a different ap- gage. He describes Kellum as “a the profits were too low. say ‘no’ because of the bigness of company has begun doing com- proach to the market, an educa- good guy” who did “wonderful Daniels agreed that Section 32 his heart, may have caused some mercial mortgage appraisals be- tional approach to home-buying.” things.” had the unintended effect of hurt- of his financial woes of the past,” cause he said his company was re- In its first year, the company did “He was interested in the indus- ing lenders such as Kellum that said Archer, who is now president ceiving pressure from residential about $50,000 in sales. Much of the try and doing things right,” did small loans in areas with low of Archer Corporate Services L.L.C. in lenders to appraise properties at company’s business throughout Gedrich said. incomes and higher credit risks. Van Buren Township. higher-than-actual values. the years was done with people “There’s high-cost loans that For instance, Kellum and sever- He said some lenders use the seeking loans of less than $80,000. serve a good purpose and one of al of his mortgage-industry peers practice to make more money off By Kellum Mortgage’s peak in Factors begin to collide the unintended consequences of organized a seminar last year mortgage deals — a practice he 2002 and 2003, the company had But a number of factors came to- (the Homeowners’ Equity Protec- called “Kings of Real Estate” to said Kellum refrained from using revenue of about $2 million and gether in recent years that Kellum tion Act) and Section 32 is that teach people about investing by and that may have cost him. was generating about $60 million a said led to the demise of his busi- they do limit the availability of renovating properties. The event Kellum has become the director year in mortgages. ness. One was federal legislation credit to those who need it most,” cost at least $65,000 to put on, of Southeast Michigan emerging As his business grew, Kellum that prohibits lending fees and said Daniels, who also served on which Kellum said he and his col- markets for Des Moines, Iowa- began branching into projects in points from exceeding 7.99 percent the board of the National Association leagues paid for personally. based Wells Fargo Home Mortgage. the community and mortgage in- of a loan’s total value. of Mortgage Brokers. “I put pretty much all of my From his office on Jefferson Av- dustry. Section 32 of the Homeowners’ Alton Gunn, president and CEO money into that,” Kellum said. enue in Detroit, Kellum will con- In 1999, Kellum started Kellum Equity Protection Act was passed of Detroit-based United Equity Mort- Kellum acknowledges that he tinue providing loans to minori- Community Housing to rehabilitate in 1994 and aims to prevent preda- gage L.L.C., said Section 32 had a overextended himself when it came ties, first-time homebuyers and affordable homes and move local tory lending among subprime similar effect on his business, to giving and putting on programs. those with low to moderate in- low- to moderate-income families lenders. In 2002, the Federal Reserve which opened in 1999 and serves a “I got caught up and lost focus comes. into them. Each year at Christmas, Board made Section 32 guidelines similar clientele to Kellum Mort- on my business,” he said. Archer said Kellum is a valu- the nonprofit held a “Home for the more stringent, said Allan gage. On top of everything, Kellum’s able resource for Wells Fargo be- Holidays” contest where it reno- Daniels, president of AA Mortgage “We’ve struggled to keep our wife, Doreen, was diagnosed with cause he’s well-established in the vated a house for a local family in Corp. in Bloomfield Hills and a past doors open,” said Gunn, who said brain cancer in November 2004. community, and since Wells Fargo need and paid the mortgage for president of the Michigan Mort- his company generates about $1 While his wife has been in remis- provides Kellum with the financial two years. gage Brokers Association. million in average annual revenue. sion since surgery in January and institutional backing he needs From 1999 to 2003, Kellum had a Kellum said the newer guide- “Section 32 is one of those things 2005, Kellum said the family’s to continue his mission. television show called “The Kellum lines made it difficult to lend to that I think it was like cutting off health insurance was inadequate “Any major success story in Report” that ran on CTN. And in people seeking small loans who your nose to spite your face.” to cover the medical expenses. The terms of entrepreneurs are laced 2002, he became the first African- usually couldn’t receive financing Gunn said his company has ordeal left the Kellum family with somewhere along the line with American president of the Michigan through traditional means. been able to survive because it has a mountain of debt, he said. failures or setbacks,” Archer said. Mortgage Brokers Association. On adjustable-rate mortgages, diversified by becoming a licensed Kellum stepped back from run- While Kellum said he’s disap- Kellum’s charitable work and Kellum Mortgage’s interest rates real estate broker and develop- ning the business to care for his pointed in losing Kellum Mort- professional involvement, along ranged from 7 percent to 9 percent, ment company. two youngest children while his gage, he’s hopeful for his future. with the growth of his company, while interest rates for 30-year wife was hospitalized. While other “It’s hurtful, but I’m not had allowed him to build up a posi- fixed mortgages typically ranged employees took over day-to-day op- ashamed,” Kellum said. “I’ve done tive reputation in the community. from 9 percent to 10 percent. Becoming undone erations at Kellum Mortgage, Kel- some wonderful things, and the “People started to feel that I was But Kellum said Section 32 made With the local economy and lum said the company’s financial plan will be way bigger. We will be sincere, that I was just not a busi- it so his company couldn’t charge housing market declining in re- situation deteriorated even fur- able to put more people into homes nessman but that I cared about enough fees to cover its costs. His cent years, Kellum said his busi- ther in his absence. than what I probably would have people in my community,” Kellum company would make $500 to $700 ness followed suit as his company The company reported revenue been able through Kellum.” said. profit on a $40,000 mortgage after was doing fewer loans and loan of $192,000 last year. Sheena Harrison: (313) 446-0325, Hugh Gedrich, president of 2002, compared with $1,500 to amounts fell with declining home “I started to lose employees, I [email protected] Gateway: Training pitched Tigers: No free TV despite success? ■ From Page 3 ■ From Page 1 tion to place a skills center at its leges and universities, she said. volved said. complicated and make it very difficult for the fran- mall in Providence, R.I., and is work- Standards for certification were Channel 20 struck a one-year deal with FSN ini- chise owner and the broadcast partner to make ing to open another at a New Orleans developed with the help of “hun- tially for 15 games, then three more, for this season, sense of,” said Sarah Norat-Phillips, president and mall. The centers help lend credibili- dreds” of national retailers, she said Greg Hammaren, vice president and general general manager of Channel 20. “We made money on ty to General Growth’s push for ur- said, and would help employees manager for FSN Detroit. He said FSN’s 110-game it. We did not get rich off of it.” ban developments, Richardson said. “get a leg up” in the retail business. contract with the Tigers runs through 2012, but de- Channel 20 was WDWB before becoming MyNet- General Growth would pay the Jim Bieri, retail consultant and clined to put a dollar amount on the deal. workTV affiliate WMYD earlier this year. estimated cost of $250,000 to $450,000 president of Detroit-based Bieri Co., No one involved in the Channel 20 deal would say Norat-Phillips doesn’t believe the Tigers’ success to open the center, Richardson said. agreed that the center can work in how much it was worth, nor were they willing to will lead to a significant boost in advertising dollars. Operating costs would be about the partnership with local groups to speculate on the price of 2007’s broadcast package. “The issue becomes what the market will bear,” same amount, and funding could train a workforce that could con- Opinions vary on how much the Tigers’ success af- she said. “It’s great that they’re a World Series team, come from workforce development vince retailers to come to Detroit. fects the price of television package. but that doesn’t mean advertisers are willing to pay grants, adult education funding and “The skill center, in conjunction “Under the right conditions, we would continue 10 times more.” other sources, said Mary Moor- with the groups that are providing the over-the-air arrangement,” Hammaren said. Hammaren, who had initial talks with Norat- house, the foundation’s director of the trainees, can provide an extra “Will it happen again next year? I’m not sure yet.” Phillips on Thursday and said “several” Detroit sta- workforce development. layer of confidence to the retailers FSN produced and staffed the games for Channel tions have approached him about a deal, said he A full-time staff would offer that they will have qualified help,” 20, Hammaren said, in a deal reached shortly before thinks the numbers will be there. training, possibly with the assis- Bieri said. the season-opener in April. FSN received rights fees “Advertisers know they have to be part of that tance of community organizations Sheena Harrison: (313) 446-0325, and a share of advertising revenue. (success),” he said. “They provide a tremendous op- and local vocational schools, col- [email protected] “The business models for these deals are very See Tigers, Page 25 DETROIT BUSINESS MAIN 10-30-06 A 24,25 CDB 10/27/2006 6:40 PM Page 2

October 30, 2006 CRAIN’S DETROIT BUSINESS Page 25

Lottery: Bonuses, innovative programs boost sales www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] of a rapid-draw wagering game that’s spread to said retailers found it helpful to have the lot- where tickets are sold, would be most likely to ASSOCIATE PUBLISHER Christopher Crain, 2,100 bars and restaurants, and instant-ticket tery take over onsite management of the myri- find the new advertising medium attractive. (313) 446-1645 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- sales that in 2006 posted their biggest gain in ad tickets and games. But the affiliation with gaming has proved to 0460 or [email protected] more than 10 years. The lottery last year also instituted a $50,000 be an obstacle with advertisers, as has the new- MANAGING EDITOR Jeff Karoub, (313) 446- 0402 or [email protected] “I think it’s a very competitive market, and if bonus that retailers can receive for cashing a ness of the advertising medium. “A lot of adver- ASSISTANT MANAGING EDITOR Michael Lee, the lottery’s going to keep their revenue, they’re winning Mega Millions multistate game ticket, tisers want proven results,” said Pam Renusch, (313) 446-0416 or [email protected] SPECIAL SECTIONS EDITOR Shawn Selby, (313) going to have to come up with ideas,” said David up from the standard 2 percent, maximum vice president and management supervisor at 446-1654 or [email protected] Zin, economist with the Senate Fiscal Agency. $2,000 cashing bonus on lottery games. The lot- Simons Michelson Zieve. GRAPHICS EDITOR Nancy Clark, (313) 446- For example, the Bureau of State Lottery rolls tery also added a $5,000 cashing bonus for However, the lottery now has some cross-pro- 1608 or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 out nearly 70 new instant-ticket games a year. prizes of $1 million or more on any games sold motion results. In August, lottery customers who or [email protected] And next month it will offer its first-ever through lottery terminals. bought tickets for electronic games received, DATA EDITOR Anne Marks, (313) 446-0418 or [email protected] statewide millionaire raffle: 500,000, $20 tickets The cashing bonuses are on top of a 6 percent among other things, a $2 discount coupon to the WEB EDITOR Dan Eizans, (313) 446-0473 or containing the best odds of winning $1 million sales commission paid to all lottery retailers. Michigan State Fair in Detroit. Renusch said 16,000 [email protected] WEB DESIGNER/PRODUCER Ai-Ting Huang, in the lottery’s 34-year history. Overall, lottery sales reached a record $2.2 tickets were redeemed, some 6.4 percent of the (313) 446-0403, [email protected] Peters, taking a page from business, has boost- billion in the just-ended fiscal 2006, up 7 percent fair’s paid attendance. EDITORIAL SUPPORT Anita Duncan, (313) ed hands-on management of from the previous year. While instant-ticket “Now that we have a real-world example, 446-0329; Joanne Scharich, (313) 446-0419 NEWSROOM (313) 446-0329, FAX (313) 446- lottery inventory in stores sales provided the biggest share, at more than we’re hoping to be able to take that now to ad- 1687 TIP LINE (313) 446-6766 and in 2006 began paying sales $710.7 million, Club Keno was the game with vertisers,” she said. REPORTERS bonuses to the lottery’s 67 the biggest percentage increase, rising 27.6 per- State Sen. Valde Garcia, R-Howell, who Robert Ankeny: Covers the city of Detroit, Wayne sales representatives — un- cent from the previous year to reach $424 mil- chairs the Senate Appropriations Committee County government, and law. (313) 446-0404 or [email protected]. usual in state bureaucracy. lion in sales revenue. general government subcommittee that over- Sherri Begin: Covers nonprofits and education. A former Democratic law- Club Keno, played in liquor-serving establish- sees the lottery’s budget, said Peters “has been (313) 446-1694 or [email protected] Andrew Dietderich: Covers biotechnology, maker who had 23 years in- ments statewide, is a rapid-draw game in which very energetic” in trying new programs and innovation and workforce. (313) 446-0315 or vestment experience between players place wagers and winning numbers are games. All lottery profits, some $686 million in [email protected]. Anjali Fluker: Covers Macomb and Oakland UBS PaineWebber Inc. and Mer- selected every five minutes. Peters said Club 2006, go into the state School Aid Fund. counties, services and environment. (313) 446- rill Lynch Inc., Peters said “in- Keno has been the most successful new game in Garcia said that in tough economic times, he 6796 or [email protected]. Peters Sheena Harrison: Covers small business, retail centive compensation is just the history of the lottery. thinks people may be more inclined to play the and nonautomotive manufacturing. (313) 446- the way Wall Street does things,” not to mention “You’ve got to keep the game interesting for lottery to “to find a way to get rich quick.” Pe- 0325 or [email protected]. Tom Henderson: Covers banking, finance and other consumer-products marketers. folks,” Peters said. And he expects sales to in- ters, however, said that a slow economy con- technology. (313) 446-0337 or “The thing about the lottery is that we really crease by at least 10 percent, or $40 million, ventionally means slow lottery sales, because [email protected]. Michelle Martinez: Covers health care, are a business, an enterprise that is within when Club Keno increases the frequency of its people have less disposable income. transportation and international business. (313) 446-1622 or [email protected]. state government,” he said. “We’re a sales orga- drawings — every four minutes instead of five. Either way, the lottery can’t afford to rest on Bill Shea: Covers media, advertising and nization.” Not all lottery games are sustained winners. its laurels. marketing, and Livingston and Washtenaw counties. (313) 446-1626 or [email protected] Peters sought Michigan Civil Service Commission The Daily Double game, which supplies the Coming in 2007 are new instant tickets capi- Jennette Smith: Covers real estate and approval to pay bonuses based on sales perfor- smallest amount of lottery revenue, also took the talizing on popular entities such as the Detroit hospitality. (313) 446-0414 or [email protected]. mance of up to $2,500 a year. He hopes in Novem- biggest sales drop in fiscal 2006, decreasing 17.2 Tigers, Detroit Red Wings, TV’s “Deal or No Deal” Brent Snavely: Covers auto suppliers, steel and ber to receive commission approval to increase percent to reach $2.2 million. show, Sudoku puzzles, and poker. restaurants and entertainment. (313) 446-0405 or [email protected]. that level, effective with the next fiscal year. Classic Lotto 47 and Fantasy 5 also each post- Focus groups are testing a battery-powered LANSING BUREAU In fiscal 2006, the lottery paid out $84,452 in in- ed sales drops of nearly 9 percent in 2006, reflect- plastic game card that is like an instant ticket, Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) centives to its sales reps that handled instant ing declining player interest. All 2006 figures for except that players press a button to try their 371-5355, FAX (517) 371-2492, tickets sold through about 8,000 retailers. The lot- lottery revenue are currently unaudited. luck instead of scratching off a ticket face. Peters [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. tery also paid $6,718 to sales reps who visit bars The lottery also faces a challenge in its first- is watching Kansas and Iowa, which currently and restaurants offering the Club Keno game. of-its-kind effort to sell advertising on lottery have the game cards. The game could attract ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) Peters said the sales incentives, plus manage- tickets. Troy-based lottery ad agency Simons young adults who “are used to having more of an 446-6032 or [email protected] ment of instant-ticket stocks to make sure tick- Michelson Zieve Inc. in 2005 won a $100,000 con- electronic experience,” he said. SALES INQUIRIES: (313) 446-6052; FAX (313) ets are prominently displayed and hot-selling tract to create and oversee a program that “There are a lot of demands for people’s dis- 393-0997 games are in plentiful supply, were key factors would place ads on the back of terminal-based cretionary money. In order for the lottery to be NEW BUSINESS DEVELOPMENT MANAGER Cathy Ross, (313) 446-0307, [email protected] in the 7.3 percent jump in instant-ticket sales in games, play slips, and $10 and $20 instant-game a competitor, we need to be fresh and innova- ADVERTISING SALES Jeff Anderson, Terri 2006, reaching a record $711 million. tickets. The lottery expected that national ad- tive, just like any other consumer products Engstrom, Matthew J. Langan, Shawn McCracken, Tamara Rokowski, Dale Smolinski Jane Shallal, president of the Farmington vertisers, such as soft-drink and snack-food company,” Peters said. WESTERN ACCOUNTS Ellen Mazen (Los Hills-based Associated Food & Petroleum Dealers, manufacturers, whose products are in stores Amy Lane: (517) 371-5355, [email protected] Angeles) (323) 370-2477 CLASSIFIED MANAGER Melissa McKay, (313) 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Christina Jaranowski, (313) 446-1655 MARKETING ASSISTANT Jennifer Dunn MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea Tigers: Despite success, there may not be free TV Beckham, YahNica Crawford CIRCULATION Candice Yopp, Manager. ■ From Page 24 PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, (313) 446-0301 portunity that advertisers have a that prevents preemption of SUBSCRIPTIONS (313) 446-0450, tough time ignoring.” ATIONAL OW RATINGS prime-time shows, making it diffi- (888) 909-9111 N TV: L TO FIND A DATE A STORY WAS PUBLISHED: Advertising rates are tied to rat- cult to schedule baseball games at (313) 446-0367 or e-mail the Crain Information ings, and the ratings improved as The Detroit Tigers-St. Louis Cardinals matchup is on pace to become the peak times, she said, a problem Center at [email protected]. lowest-rated World Series since Nielsen Media Research began tracking the the team improved. Fall Classic in 1968. Channel 20 didn’t have because it CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Channel 20 averaged a 7.6 rating wasn’t yet part of MyNetworkTV. CRAIN COMMUNICATIONS INC. Locally, however, the series remains the hottest thing on television. CHAIRMAN Keith E. Crain and a 15 share for its 18 Tigers The Tigers are also pitching ra- PRESIDENT Rance Crain Nationally, the first four games have averaged a 10.5 rating and a 17.2 broadcasts, according to details dio rights. CBS Radio-owned WXYT SECRETARY Merrilee Crain share. The Fox Network’s Detroit affiliate, WJBK Channel 2, is averaging a provided by the station from 1270 AM has done Detroit’s play-by- TREASURER Mary Kay Crain 37.5 rating and 54 share. Executive Vice President/Operations Nielsen Media Research. play since 2001 and owns the Detroit William A. Morrow Ratings are the percentage of households in the market tuned in to a show. Ratings are the percentage of Tigers Radio Network of 30 stations in Group Vice President/Technology, A share is the percentage of those watching TV who are watching a show. Manufacturing, Circulation households in the market tuned in Michigan, Ohio and Ontario. Robert C. Adams In 1968, which also featured a Tigers-Cardinals matchup, NBC saw a 22.6 Vice President/Production & Manufacturing to a show. A share is the percent- rating, 54 share. The 1984 Detroit-San Diego World Series was a 22.9 No one involved would say how Dave Kamis age of those watching TV who are rating, 40 share. much the deal is worth. WXYT Gen- Corporate Director/Circulation watching a particular show. eral Manager Rich Homberg did not Patrick Sheposh The previous World Series low was last year’s Chicago White Sox-Houston G.D. Crain Jr. Founder (1885-1973) In general, ratings for every- Astros matchup, which averaged an 11.1 rating, 19 share. return messages Thursday and Fri- Mrs. G.D. Crain Jr. Chairman (1911-1996) thing have slid over the years with — Bill Shea day, but Bruce Eichner, who han- EDITORIAL & BUSINESS OFFICES: the expansion of cable and satellite dles ad sales at the station for the 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 offerings. year to air New York Yankees 50, now called CW 50, couldn’t reach Tigers, Lions and Red Wings, said Cable address: TWX 248-221-5122 AUTNEW DET “Expectations were muted from games from 1989-2001, which is con- a deal with the team after the 2003 advertisers have been bombarding Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. a ratings standpoint (before the sidered the high end of the spec- season, which saw Detroit lose 119 him since the All-Star break. Outside U.S.A., add $48 per year to out-of-state season). When things took off, rat- trum. Postseason games belong to games. Station Vice President and “Certainly, winning helps,” he rate for surface mail. Reprints: For inquiries call the reprints ings grew dramatically,” Ham- Major League Baseball, which has General Manager Shaun McDonald said. The station paid the team a department at: (800) 494-9051, Ext. 144 , or at maren said. a deal with the networks. did not return two calls for com- lump sum for the broadcast rights, [email protected] CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Comparatively, Channel 20’s 35 “It’s good for everybody that ment last week. The team declined and then negotiated deals with oth- is published weekly by Crain Communications Inc. some number of games are over at 1155 Gratiot Ave., Detroit MI 48207-2732. Pistons broadcasts last season to say if Channel 50 has shown in- er stations in the region to become Periodicals postage paid at Detroit, MI and were a 7.9 rating and a 15 share. the air” Hammaren said. “But the terest in a new broadcast deal. network affiliates. The flagship additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Each baseball team negotiates key is, what number is that? What What worked in Channel 20’s fa- and affiliates split ad revenue. Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in its own local broadcast and cable can the economics support? It’s vor was being between networks Ilitch Holdings’ Cullen said several U.S.A. television deals. For example, the just very difficult.” when it signed the Tigers deal, No- stations have expressed interest. Entire contents copyright 2006 by Crain Communications Inc. All rights reserved. now-defunct MSG cable network The Tigers’ former longtime rat-Phillips said. Most affiliates Bill Shea: (313) 446-1626, bshea@ Reproduction or use of editorial content in any paid an average of $55 million a over-the-air home, WKBD Channel have agreements with the network crain.com manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 10-30-06 A 26 CDB 10/27/2006 6:21 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS October 30, 2006 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 14-20

the governor, but that’s the “additional consideration” break ground in the first system we have.” ProQuest to terms that could net more quarter of 2007 and move in Local baseball money for the city through by April 2008. Mason back in the the EDC if condominium ■ Farmington Hills-based sell auto parts units sell above a base price, Covansys Corp. (Nasdaq: morning … in Flint $270 a square foot for @Wa- CVNS) said it would delay films to play John Mason is back on the ter and $190 a square foot for the release of its third-quar- air. But not in Detroit. catalog biz the Globe site. ter earnings for the quarter The radio broadcaster ending Sept. 30. known for his 18-year stint for $500M ON THE MOVE ■ Ann Arbor-based soft- at Cooperstown as host of “Mason in the ware company Janeeva Inc. ■ Morning” show on WJLB FM Jamie Michelson Jr. has acquired Boston-based Van- nn Arbor-based Pro- 97.9 FM, and as the public assumed the role once held tage Partners’ software divi- wo Michigan-made although he retired as pres- Quest Co., a publish- address announcer for the by his father and grand- baseball documen- ident of Southfield-based A er of information sion Vantage Technologies. Detroit Pistons, debuted on father by taking over as Terms of the deal were not T taries are to be Lawrence Technological Uni- software for education and president of Troy-based Si- Wednesday a 6-10 a.m. mu- among those featured Nov. versity in July. automotive markets, has released. sic-and-talk show on WOWE mons Michelson Zieve Inc. Ad- ■ 10-12 at the annual film fes- Chambers remains a signed an agreement to sell The Michigan Economic 98.9 FM in Flint. vertising. Michelson, 40, suc- tival in the National Baseball tenured professor there, its ProQuest Business Solu- Development Corp. approved A federal judge ruled that ceeds his father, Jim Hall of Fame at Cooper- with the tions division to Snap-on $277,270 in single-business a noncompete clause with Michelson, 65, who is chair- stown, N.Y. title of Inc. for about $500 million, tax brownfield tax credits his former employer, Lan- man of the board. Michel- Both “Stranded at the distin- Automotive News reported. for UIG-13115 E. Jefferson ham, Md.-based Radio One son spent 10 years working Corner” and “The Kalama- guished Snap-on will pay $481 mil- L.L.C. for renovating the Inc., blocked him from being for Southfield-based Doner, zoo Kings” are the work of professor lion in cash and assume $19 1926 landmark former on the air within 75 miles of where he was a senior vice Emmy award-winning film- of science million of debt. Savarine Hotel at 13115 E. its WDMK 105.9 FM, which president. maker Gary Glaser, who and tech- The deal must first pass Jefferson Ave. The owners had employed Mason most blended archive footage of nology, federal regulatory review. plan a $2.78 million project recently as an afternoon dri- Detroit’s now-moldering but is on ProQuest Business Solu- BRIEFLY to create 118 apartments. ve-time host. The Flint sta- Tiger Stadium to create leave tions provides electronic ■ Six advertising, mar- tion’s transmitter is in Vas- ■ Michigan’s unemploy- “Stranded,” a look at the while he parts and service informa- keting and media compa- Chambers sar in Tuscola County, ment rate remained at 7.1 ballpark’s history serves as tion to automotive dealers outside the 75-mile radius. percent in September, un- nies in Detroit that belong and present co-chair of the Consortium Fu- worldwide. In all, about Mason’s pact with changed from the previous to London-based holding plight since eling Michigan’s Future, a 33,000 dealers use a Pro- WDMK expired July 29, so month, the Michigan Depart- company WPP Group will as- its closing in group funded by the Detroit Quest catalog or service. the noncompete clause is in ment of Labor & Economic sume the collective name 1999. Auto Dealers Association to The deal is expected to effect until Jan. 29. After Growth Team Detroit on Jan. 1 and With promote an expansion of close by the end of Novem- said the week of Oct that, he’s free to broadcast move into a pair of building plans under- Cobo Center. On Wednes- ber. 20, up from a year-ago rate in Detroit. in Dearborn. Team Detroit way to day, the consortium holds Snap-on, based in of 6.5 percent, and also Before Radio One filed will include JWT, Young & its first meeting of a poten- Kenosha, Wis., makes hand higher than the nation’s 4.6 suit against him on Sept. 7, Rubicam, Wunderman, Ogilvy tial steering committee to and power tools, tool stor- percent jobless rate. Mason had plans to build a ■ & Mather and GroupM media work on a feasibility study. age, diagnostics software, The Detroit Area Busi- nationally syndicated net- companies Mediaedge:cia (See related story, Page 21.) information and manage- ness Activity Index, produced work, with Detroit’s WGPR and MindShare. JWT Detroit sell off seats and other sta- Chambers also is running ment systems, shop equip- by Comerica Bank, fell four 107.5 FM as the flagship sta- president and CEO George dium artifacts this fall, ment and other products points in September to 105, for the board of trustees of tion. He said he built a Rogers will be the president Tiger Stadium could be for vehicle manufacturers, down three points from Au- Oakland Community College. $600,000 studio in down- and CEO of Team Detroit. largely demolished by dealerships and repair cen- gust and off six percent Last Wednesday morning, a town Detroit’s Guardian He will continue the same spring, city officials say. No ters. Snap-on posts annual from a year ago. breakfast fund-raiser was Building for the network’s role with JWT Detroit. final plan is yet in place to revenue of $2.4 billion. ■ Lansing-based PM Envi- held for him at Andiamo West headquarters. ■ preserve a portion of the ronmental Inc. plans to The city of Detroit has in Bloomfield Township, Carolyn James, WGPR’s playing field as a perma- merge with AKT Peerless En- decided not to sell 115 acres with tickets ranging from programming director, said Development corp. nent historic site and park, vironmental Services L.L.C. in of Rouge Park to be devel- $50 to $200. she plans to meet with Ma- as the city has discussed. Farmington Hills, effective oped for housing, the De- Oakland County Execu- son in December to discuss approves two projects “Kalamazoo Kings” re- Jan. 1, 2007. troit Free Press reported. tive L. Brooks Patterson, who a show. The Detroit Economic De- ■ cites the story of the six- ■ The National Cancer In- Green Oak Village Place has had his differences of velopment Corp. approved year old Frontier League stitute has awarded a $1.2 held a celebration Friday to opinion with the OCC development agreements mark the grand opening of franchise and how that ball- BITS & PIECES million grant to the Universi- board, said Friday he didn’t for two east riverfront pro- the 565,000-square-foot club has become a part of ■ The Caleidoscope of Cul- ty of Michigan to train public recruit Chambers to run jects. lifestyle retail center in the community in the west ture Foundation on Oct. 12 health students to conduct but supports his candidacy. In the preliminary agree- Green Oak Township. The Michigan town. honored four local compa- cancer research in ethnic “Frankly, he’d be a wel- ment approved by the EDC, shopping center was devel- Information about the nies for their efforts to pro- The @Water (Atwater) Lofts populations. come addition. Over the ■ oped under a partnership baseball film festival is mote diversity awareness L.L.C., a Detroit-based com- Grand Rapids-based years, he put Lawrence between Wixom-based available by calling (800) and cultural sensitivity in pany, agrees to buy the east Meijer Inc. rolled out a pre- Tech on the map. He brings Quadrants Inc., Southfield- HALL-OF-FAME. the workplace. Awards riverfront properties at $10 scription drug program a wealth of experience and based Redico L.L.C. and Lor- will professionalize the pol- went to: Community Network a square foot, paying $3.98 Monday that allows cus- max Stern Development Co. icy making body of OCC,” Services in Farmington million for 9.2 acres. tomers to receive free Former LTU president The center’s 400,000 first said Patterson. “I wonder Hills, Detroit-based Henry Located on the site of the generic antibiotics with a phase opened last week, seeks seat on OCC board why we elect boards for Ford Health System, the De- former LaFarge Corp. ce- prescription at each of Mei- while a 165,000-square-foot Apparently, Charles Cham- community colleges. They troit Regional Chamber and ment silo, the project, head- jer’s 176 stores in Michigan, second phase is scheduled bers isn’t the retiring type, ought to be appointed by OpTech L.L.C. in Detroit. ed by Dwight Belyue of Bel- Ohio, Indiana, Illinois and mar Development Group, is to Kentucky. Also, Wal-Mart to open in the spring. Ten- include 500 market-rate res- Stores Inc. said that its 103 ants include Dick’s Sporting idential lofts and 40,000 stores in Michigan will be Goods, DSW, Old Navy and square feet of ground-floor included in its $4 generic Barnes & Noble. J.C. Penney is commercial and retail prescription drug program scheduled to open a store at Have an opinion? Harness crainsdetroit.com space. Belyue said he ex- the company launched last the center in February. Do you have a political opinion on important issues are being ignored pects to start construction month. something? Have you tried sending this year. in the spring of 2007. ■ Auburn Hills-based OBITUARIES a letter to Crain’s Detroit Business The second project, slat- public-relations firm Auto- We’ll compile letters sent to ■ during past election cycles and [email protected] daily until the ed to redevelop the long-va- PR has changed its name to George Miller Jr., a re- never saw it make print? election and post them as part of our cant Globe Trading Co. build- The Millerschin Group. tired senior partner with Well, we’re encouraging you to send daily e-mail alerts. ing at 1801 Atwater St., is ■ ITC Holdings Corp. says Bodman L.L.P. in Detroit, your letters to us via e-mail to The letters will also be posted to our being undertaken by Urban it will build a 330,000- died Oct. 18 after suffering harness the power of online election guide Development Co., headed by square-foot complex as its two falls. He was 78. crainsdetroit.com. (crainsdetroit.com/election06), Mark Wilcox. Plans call for new headquarters in Novi ■ William Quigley Jr., for- Go ahead, tell those birdwatchers which compiles all election-related that building to be renovat- at Haggerty and 12 Mile mer executive director of just how delicious the breast of a stories from our Web site and the corporate communications mourning dove tastes when properly ed and rehabilitated into 45 Road. The electric-trans- grilled (and believe me, they are WEB WORLD print publication free of charge to all loft condominiums plus mission company’s current for General Motors Corp., great wrapped in bacon!). Give us Daniel Eizans visitors. 10,000 square feet of retail headquarters are in Novi died Oct. 22 of lung disease your reasons for supporting a So go ahead. I know you’re dying to space on the ground floor. on Eight Mile and Hagger- in Chestertown, Md. He gubernatorial candidate, or tell us what hit the send button on your e-mail. The deals include unique ty. The company expects to was 71. 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