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www.crainsdetroit.com Vol. 24, No. 32 AUGUST 11 – 17, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Auto supplier plants work Storms cost utilities $48M around Olympics in Beijing Locally based auto sup- DTE, Consumers earnings take 2Q jolt pliers with factories in the Beijing area are making BY AMY LANE The costs bit into sec- some temporary changes ond-quarter earnings for for the 2008 Olympics. CAPITOL CORRESPONDENT PROBE the utilities’ parent compa- Van Buren Township- LANSING — June storms that knocked PSC studies nies and are another im- based Visteon Corp. halted response, out electricity to more than 760,000 cus- pact from the series of production at a climate Page 32. tomers of Michigan’s two largest utilities thunderstorms that control products plant in hit the electricity providers with a com- crossed Michigan’s lower Beijing Aug. 4-7 and shut- bined cost of some $48 million to restore peninsula and knocked out power to tered its Yanfeng Visteon power. homes and businesses. Beijing facility on Friday. Detroit Edison Co. spent $36 million when Storm-response costs reduced DTE Ener- That plant will reopen gy Co.’s second-quarter earnings by about Aug. 18. Visteon spokes- storms struck in early June, while Con- sumers Energy Co. spent at least $12 million, $20 million, compared with a $13 million PHOTO COURTESY OF DTE ENERGY man Jim Fisher said the Repair costs for storms this year have hammered utilities. company is following the company officials said last week. See Storms, Page 32 production schedules of its customers and was not asked to close by the Chi- nese government. Troy-based Delphi Corp. said the company’s plants Where’s in Beijing have not been affected by the Olympics. But because of Olympic- Born for a mission related road closures and the cash? traffic reductions, the supplier has had to reroute Exec’s childhood in foster and consolidate its parts Mistaken donor still shipments, according to Lindsey Williams, corpo- care drives push for clinic rate restructuring, finan- waiting for money cial communications, la- BY SHERRI BEGIN bor and manufacturing BY TOM HENDERSON CRAIN’S DETROIT BUSINESS spokesman for Delphi. CRAIN’S DETROIT BUSINESS “It’s been strictly some im McElya didn’t always talk much about his logistical changes,” childhood. Livonia business owner Ross Bates Jr. Williams said. J But the chairman of Cooper-Standard Automo- hopes that with Mayor Kwame Kilpatrick’s Auburn Hills-based Borg- tive has reason to now. legal defense fund running on empty, Warner Inc. said a company Left on the doorstep of the Salvation Army in there’s enough money left to make good on plant in Beijing was ex- West Chester, Pa., a promise to return a donation of $1,500 he pected to be closed from when he was said he made after being last Friday through this just 6 weeks told the money would go Saturday. old, McElya to a youth organization. “The Chinese govern- has made it Ross is president of Ad- ment suggested we do this his mission to vanced Air Services Inc., a to improve traffic condi- help raise $1 heating and air conditions in Beijing,” Dave Pe- million to open a tioning contractor that terson, BorgWarner man- medical clinic for home- was listed on an IRS ager of global branding less and uninsured children and form filed in July as hav- and media relations told their mothers. ing made a donation of Crain’s in an e-mail. “Our Cooper-Standard and its employ- $1,500 on May 14 to the facility made a plan back in ees have chipped in $150,000. mayor’s Detroit Justice April (as many other com- McElya and his team have raised anoth- Fund. REACTION panies did) to shut down er $250,000 through donations from the suppli- But when contacted by Should Mayor during the Olympics.” er’s private equity owners, its vendors and peers, a Detroit Free Press re- Kwame Peterson added that be- including Lear Corp., BorgWarner Inc., Continental Inc., porter last month, Bates Kilpatrick cause this closure was Excel Polymers, Marimba Automotive, GKN Sinter Metals, denied he was a support- resign? planned, it would not affect Yazaki North America Inc., Deloitte & Touche L.L.P., Ernst & er of the mayor. Page 30. August sales figures. Young L.L.P., Foley & Lardner L.L.P., Watson Wyatt World- On July 16, Chris Gar- He also noted this type of wide and in-kind or product support from IBM Corp. rett, a Washington-based member of the a shutdown was not unusu- and Microsoft Corp. mayor’s legal team, said the fund was real, as many companies “My mother couldn’t support me and my older sis- turning Bates’ money as well as $3,000 do- have summer shutdowns. ter,” said McElya, who grew up in nearly a dozen fos- nated by S.A. Restaurants Inc. Its listed ad- — Ryan Beene Jim McElya, chairman of Cooper-Standard ter homes with families who depended on assistance dress, 20771 W. Eight Mile Road, is occupied Automotive, is helping raise $1 million to from safety net organizations such as pantries and the See This Just In, Page 2 open a clinic for homeless and uninsured by a topless bar, the Penthouse Club. children and their mothers. See McElya, Page 31 See Fund, Page 29

HEALTH CARE Crain’s honors industry heroes,

NEWSPAPER Page 11 DETROIT BUSINESS MAIN 08-11-08 A 2 CDB 8/8/2008 5:46 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS August 11, 2008

System, Faculty Group Practice, Ellis represented The Ma- North American headquar- CRAIN’S SEEKS BEST MANAGED NONPROFITS THIS JUST IN Ann Arbor; United Physicians, comb Group in the deal. ters in Bloomfield Hills. This year has seen continued challenges in the Bingham Farms; United Oak- Dart’s representative was “Importing alcohol is so ■ nonprofit arena that have included changes in From Page 1 wood Providers, Dearborn; Colliers International in South- heavily regulated that you United Way funding in addition to a weak economy. Henry Ford Medical Group, De- field. even have to apply to apply Therefore, this year’s Best Managed Nonprofit Database for cancer care troit; Oncology Physician Re- — Chad Halcom for label approval,” Rapp Contest will continue to look at nonprofits that Blue Cross Blue Shield of source and Quality Partners of said. have taken specific steps to improve operations Michigan is working with Michigan, Royal Oak; St. John Papa Joe’s to open in Novi RGI Brands is relying on and delivery of services. more than 180 oncologists in HealthPartners, Warren; Oak- local businesses such as Ann We are looking at the following categories: land Physician Network Ser- Papa Joe’s will open its eight physician groups in Arbor-based Brett Mountain Ⅲ Collaborations, including mergers. vices, Waterford Township. metro Detroit store in Novi Southeast Michigan and Photography for photo work, — Jay Greene as part of the reconfigured re- Ⅲ Finding ways to do more with less. three other groups in the Birmingham-based Direct Me- tail development 12 Mile Ⅲ Strategies for diversifying funding. state to gather quality data to dia Concepts for graphic de- Crossing at Fountainwalk. Ⅲ Launches of new programs that help the improve care for cancer pa- sign, Evans Distribution Sys- Dart leases Sears facility The lease was signed last organization better meet objectives. tients in Michigan. tems in Melvindale for With Blue Cross funding, Sterling Heights-based real week for a 30,000-square-foot Please focus on only one of the above in your estate company and luxury store, said Tony Curtis, a part- logistical support and is stor- application. the oncologists are submit- ing its inventory at Central residential property manag- ner in the venture, Papa Joe’s As always, documentation of results is important. ting information to a data- Detroit Warehouse, also in er Dart Properties II L.L.C. has Novi L.L.C. It will include a Applications for the contest are due Sept. 17. base set up by the American Melvindale. leased the former Sears Hold- 10,000-square-foot mezzanine Finalists in this year’s contest will be interviewed in Society of Clinical Oncology to — Nathan Skid help physicians identify ings Corp. customer appliance to be used for wine-tasting person by judges the morning of Dec. 2. what works best in cancer repair center and hardware and entrances facing 12 Mile Applicants for the award must be a 501(c)(3) with care. store on Mound Road for a Road and the courtyard of the Mayor’s aide goes to DTE headquarters in Wayne, Washtenaw, Oakland, open-air retail center. Macomb or Livingston counties. The groups also will be eli- warehouse and office. Al Fields, who served CB Richard Ellis, Southfield, gible to receive additional in- The 35,000-square-foot Kwame Kilpatrick in a variety Each application must include a completed entry brokered the deal. centive payments from Blue building south of 15 Mile of key posts including form, a copy of the nonprofit’s most recent audited — Daniel Duggan Cross for participating and Road, which has stood vacant deputy COO for special pro- financial statements and a copy of the nonprofit’s most recent IRS Form 990. implementing improvements since early 2006, was sold in jects and Fusion Center direc- that lead to improved quali- December for $1.1 million to French vodka to be tor, has left the city to return Previous first-place winners are not eligible; neither ty, coordination and efficien- The Macomb Group, a supplier to DTE Energy Corp. as manag- are hospitals, HMOs, medical clinics, business and professional organizations, schools, churches or cy in treating cancer pa- and distributor of pipe and distributed in area er of economic development. foundations. tients. fittings. After navigating a myriad Fields was credited with Michigan’s oncologists The Macomb Group had of applications and forms, successfully coordinating The winning nonprofits will be profiled in the Dec. treat an estimated 16,000 can- originally planned to expand East Lansing-based RGI city of Detroit efforts with the 22 issue, receive a cash award, a special “best- cer patients annually, one of into the site. Instead, the Brands L.L.C. co-CEOs Jared private sector in preparation managed” logo from Crain’s for use in promotional material, and will receive recognition at the Crain’s the largest numbers of any company’s real estate entity, Rapp and Moti Goldring have for Super Bowl XL in 2006. He Newsmaker of the Year lunch in February. state participating in the Flint Acquisitions L.L.C., brought Dragon Bleu, a premi- previously was a vice presi- data collection. changed its plans and offered um vodka distilled in Grande dent at Comerica/Manufactur- For a copy of the application form, please send an The eight area groups are: a lease this summer to Dart. Champagne, France, to ers Bank. e-mail request to [email protected] or visit University of Michigan Health Real estate broker Grubb & Michigan and will base its — Robert Ankeny www.crainsdetroit.com/nominate. For more information, call (313) 446-0329.

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August 11, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Heart care staffing debated INDEX

lab, said the hospitals, Henry Ford has been implement- Taking Stock: Twilight book series may help 24-7 not critical, some doctors say tal looked into ing a number of process improve- Borders Group’s bottom staffing a cardiolo- ments to reduce door-to-balloon time line. Page 4. BY JAY GREENE on-site cardiologists because they gist around the to less than 90 minutes in more than 80 Bumpy round: Most of CRAIN’S DETROIT BUSINESS were able to reduce potentially life- clock but decided percent of the cases, Kugelmass said. the 117 applications for saving “door-to-balloon” procedure against it. On-call The hospital has cut times in half 21st Century Jobs Funds Cardiologists at several hospitals times without spending additional cardiologists are since 2003, he said. lacked full compliance. Page 6. in Southeast Michigan have raised funds to staff their cardiac catheteri- required to be at “We have achieved a lot without questions about the suggestion made zation lab 24 hours a day, seven days the hospital within doing that (24-7 cardiologist),” he Income in advice: Financial planning is one last week by the Detroit Medical Cen- a week. 30 minutes. said. “We concluded we would be reason why Michigan ter that having an on-site cardiology Considered a gold standard of heart Kugelmass “Having an on- better off investing in other areas.” Financial Cos. is thriving team around the clock at two of its attack care, door-to-balloon time site cardiologist is After an Aug. 5 press conference to in hard times. Page 24. hospitals is the magic bullet to sig- refers to the number of minutes it the least-effective way to optimize announce its new cardiac care pro- nificantly improve the quality of takes for a patient who enters the hos- door-to-balloon time,” said Kugel- gram — called Cardio Team One — care of heart attack patients. pital with chest pain symptoms until mass. “It is one factor, but not most DMC officials have been unavailable for comment. Dr. Theodore Several area hospitals, including a cardiologist opens an artery and be- important. We have in-house doctors Schreiber is director of DMC’s Car- Henry Ford Hospital in Detroit and gins an emergency angioplasty. who are not interventional cardiolo- dio Team One. William Beaumont Hospitals in Royal Dr. Aaron Kugelmass, Henry Ford’s gists but who can get the ball rolling.” Oak, considered and rejected hiring director of the cardiac catheterization Like most top cardiovascular hospi- See Staffing, Page 32

Revving up: Work crews are leading the race to prepare Belle Isle for the Grand Prix. Page 26.

These organizations appear in this Pinched suppliers cut staff, file suits week’s Crain’s Detroit Business: Advantage Health Centers ...... 31 Alcos ...... 18 have a healthy-sized business with the Detroit 3,” Barbara Ann Karmanos said David Peterson, BorgWarner manager for Cancer Institute ...... 14 Rising costs, changed market spur moves Baseball Heroes...... 27 global branding and media relations. “It’s like the Biggby Coffee ...... 26 BY RYAN BEENE Those cutbacks are old adage: When GM gets a cut, the rest of us Borders Group Inc...... 4 AND CHAD HALCOM coming despite net in- bleed.” BorgWarner Inc...... 3 BorgWarner’s retrenchment is in response to Cannella Patisserie and Creperie . . 26 CRAIN’S DETROIT BUSINESS come that increased 16 Center for Automotive Research . . . 28 percent to $87.5 million what the company called a continuing, fundamen- Charter Equals County Executive . . 28 As local auto suppliers feel the squeeze of in- on record revenue of $1.5 tal market shift in the U.S. auto industry away Charter One ...... 26 creased economic pressure on their industry, billion, up 11 percent from pickup trucks and SUVs to smaller, more Children’s Health Initiative Program 12 some are shaking up operations and laying off fuel-efficient cars. Chrysler L.L.C...... 28 from the same period a Chrysler Financial L.L.C...... 28 workers. Others are heading to court. year ago. BorgWarner’s announcement is evidence of the Citation Corp...... 33 Even a standout second-quarter performance by The company also had strain on suppliers in North America, a reality Consumers Energy Co...... 1 Auburn Hills-based BorgWarner Inc. was not strong sales in Europe noted by CEO Tim Manganello in the company’s Cooper Standard Automotive ...... 1 ON THE WEB earnings conference call when he said “even our Co-op Network ...... 18 enough to stem staffing cuts. and Asia, and increased Delphi Corp...... 33 BorgWarner said in its second-quarter earnings An interview with Bill sales of such fuel-saving global success does not make us immune.” Detroit Belle Isle Grand Prix ...... 26 report released July 31 that it planned to cut 1,000 Fetterman from technologies as tur- U.S. car and truck sales through July totaled Detroit Edison Co...... 1 people from its North American workforce during Advanced bochargers. 8.55 million vehicles, down 10.5 percent from a Detroit Institute for Children . . . . . 12 Manufacturing Group, Detroit Rescue Mission Ministries . 30 “We’re a very diversi- the third quarter, including about 80 from the www.crainsdetroit.com. DMC-Children’s Hospital ...... 12 company’s five Michigan facilities. fied company, but we do See Suppliers, Page 33 FormTech Industries L.L.C...... 33 GMAC Financial Services ...... 28 Health Alliance Plan ...... 19 HealthMedia ...... 19 Henry Ford Health System ...... 13 Homeless Action Network ...... 31 Johnson Controls Inc...... 33 J.S. Clark Agency ...... 24 Kickhaefer Manufacturing Co. . . . . 33 LaFontaine Automotive Group . . . . 28 More than having right last name MEDC ...... 6 Macomb County Chamber ...... 28 McGraw Wentworth ...... 18 Wickersham in March. It MichBio ...... 6 Roncelli president marked the first time someone Michigan Financial Cos...... 24 outside the family has led the MPS Group Inc...... 28 National Center for company. Manufacturing Sciences ...... 6 1st outside family “I’m a high school graduate Oakland Hills Country Club ...... 26 who went to work for his father Penske Corp...... 26 and built a career in the field,” Priority Health ...... 19 BY DANIEL DUGGAN Roncelli Inc...... 3 said Gary Roncelli, 57, former St. John Health ...... 18 CRAIN’S DETROIT BUSINESS president of the company. “As Sterling Heights Dodge ...... 28 Tumaini Center ...... 13 When Skip Roncelli started life gets more complex, the need for seasoned professionals University of Michigan Health his concrete-pouring business in Management Research Center . . . . 18 around you becomes clear.” 1966, revenue was roughly UM Health System ...... 14 Wickersham brings a finan- $200,000. Voices of Detroit Initiative ...... 15 cial background to the company. Walbridge Aldinger Co...... 33 In recent history under his As an accountant with Troy- Wellco Corp...... 18 son Gary’s leadership, the con- based Doeren Mayhew & Co. P.C., struction company built the $300 he was assigned to the Roncelli million Technology Center for account until he was hired on as General Motors Corp., 23 Showcase controller in 1987. BANKRUPTCIES ...... 6 Cinemas movie theaters across A client now expects a con- BUSINESS DIARY ...... 22 the country and the new $142 struction firm to be a consultant CALENDAR ...... 23 million Pinnacle Race Course in on the finances behind a devel- CAPITOL BRIEFINGS ...... 6 Romulus. opment as much as the construc- CLASSIFIED ADS...... 26 The company has grown to tion, Roncelli said. Wicker- KEITH CRAIN ...... 8 2007 revenue of $236 million. sham’s presence means the LETTERS ...... 8 But an evaluation of the high- person handling day-to-day oper- MARY KRAMER...... 9 level business expertise it would ations of the company will have OPINION ...... 8 take for the company to compete a handle on the complex finan- PEOPLE ...... 23 RUMBLINGS...... 34 NATHAN SKID/CRAIN’S DETROIT BUSINESS with the other firms in town led cial structures of the deals the Tom Wickersham (left back row) is being asked by the Roncellis — Gary (right rear), David the Roncelli family to hand oper- WEEK IN REVIEW ...... 34 (front left) and Scott – to lead the family-owned company into the next decade. ations of the company to Tom See Roncelli, Page 33 DETROIT BUSINESS MAIN 08-11-08 A 4 CDB 8/8/2008 4:56 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS August 11, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Blockbuster book series may help the bottom line for Borders

BY NANCY KAFFER Hallows) sold something like 8.3 Borders stock has been falling CRAIN’S DETROIT BUSINESS million copies on day one,” he for the past year. The company’s said. “In some ways, Meyer will 52-week high of $16.66 was on Aug. Borders Group Inc. (NYSE: BGP) reported slipping same-store sales never be in the same area code as 9, 2007; it’s 52-week low was $3.87 in its last quarterly earnings re- (Harry Potter author) J.K. Rowl- was four weeks ago on July 14. The port — but the nation’s second- ing, but it’s certainly a big deal.” stock closed Friday at $5.66. largest bookseller may get a boost Big enough for Borders to feel Nancy Kaffer: (313) 446-0412, from the publishing industry’s lat- the impact? [email protected]. est phenom. Breaking Dawn, the fourth and final installment of author Stephe- nie Meyer’s Twilight series, was released at 12:01 a.m. Aug. 2 at par- Cost-cutting helps Noble beat expectations ties at bookstores across the coun- BY RYAN BEENE Noble posted net income of $9 try, including Borders stores and CRAIN’S DETROIT BUSINESS million, or 34 cents per share, on Borders-owned Waldenbooks. The revenue of $315 million in the sec- Ann Arbor-based bookseller said Shares of Troy-based Noble Inter- ond quarter, up 385 percent from it sold more than 250,000 books on national Ltd. rallied in heavy trading net income of $1.8 million, or 13 the first day of sales, with pre- Thursday as the company’s second- cents, on revenue of $183 million in orders rivaled only by the Harry quarter financial results beat ana- the same quarter a year ago. Potter septet. lysts’ expectations. The company focused on cutting Borders declined to give the num- The supplier of laser-welded steel North American costs by reducing ber of preorders for either series. blanks used by the auto industry scrap rates, closing a plant in Holt, “The book industry will never saw its share price shoot up about making progress on a South Haven see another Harry Potter,” said 98 percent, or $3.15, from its plant closure, and gearing up to Michael Norris, senior analyst at Wednesday close to hit a daily high consolidate its outsourced stamp- Maryland-based market research of $6.34 about an hour after the Simba Information ing operations into an in-house fa- firm . “But for opening bell Thursday. Noble’s now, Stephenie Meyer is the next cility, CFO David Fallon said in stock cooled during the day to close best thing.” Noble’s Aug. 7 earnings confer- at $5.40, up 69 percent on the day. The popularity of the young- ence call. The 809,900 shares traded Thurs- adult-oriented Twilight series, Fallon noted that the company day was the company’s second- which tells the story of teenager managed its variable manufactur- highest volume day since June 22, Bella Swan and her romance with ing costs in North America to 2004, when Noble’s stock was a handsome vampire, has grown match the company’s 21 percent worth $16.60 per share. The stock exponentially — the initial press sales drop in the region from de- closed Friday at $5.05. The compa- run for Twilight, the first book in creasing vehicle production, call- the series, was 75,000; 3.2 million ny’s 52-week high was $22.74 on ing it “a very significant accom- copies of Breaking Dawn were Aug. 9, 2007. plishment.” printed, according to trade publi- “(I was) extremely surprised at Noble’s cost-cutting efforts cation Publishers Weekly. A film how they blew away my or any- helped the company increase its version of the first installment is body else’s expectations,” said free cash flow for the quarter by www.kpiscorecard.com due in December. Christopher Bamman, an analyst 169 percent to $31.2 million from Sales of the highly anticipated and vice president with Morgan $11.6 million a year ago. final volume in the Potter series Jones & Co. Inc., a New York invest- Ryan Beene: (313) 446-0315, contributed to a 4.6 percent bump ment banking firm. [email protected] in same-store sales in Borders’ second quarter last year, but it didn’t increase the bookseller’s profits for the quarter. STREET TALK Borders’ second quarter closed Aug. 2; an earnings report is ex- THIS WEEK’S STOCK TOTALS: 40 GAINERS, 20 LOSERS, 9 UNCHANGED

pected at month’s end. Borders 8/08 8/01 PERCENT CEO George Jones has implement- CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE ed a number of cost-cutting poli- 1. Amerigon Inc. $8.00 $6.45 24.03 cies this year, including executive 2. Rofin-Sinar Technologies Inc. 41.48 33.85 22.54 layoffs, and the first quarter saw 3. Credit Acceptance Corp. 19.05 16.80 13.39 the launch of Borders’ in-house e- 4. ArvinMeritor Inc. 15.22 13.71 11.01 commerce site. Online sales for- 5. Caraco Pharmaceutical 15.51 14.05 10.39 merly were handled by Internet TRW Automotive Holdings Corp. 20.01 18.17 10.13 competitor amazon.com. Jones has 6. ITC Holdings Corp. 54.82 50.40 8.77 said that such measures will save 7. money and have improved Bor- 8. Pulte Homes Inc. 12.96 12.01 7.91 ders’ cash flow. 9. BorgWarner Inc. 43.31 40.18 7.79 But the popularity of book se- 10. Masco Corp. 17.92 16.64 7.69 ries like Harry Potter or Twilight CDB’S LOW PERFORMERS 8/08 8/01 PERCENT can do more for Borders than just CLOSE CLOSE CHANGE increase sales, Norris said. Savvy 1. TechTeam Global Inc. $8.33 $9.84 -15.35 marketing campaigns like mid- 2. First Mercury Financial Corp. 12.41 14.31 -13.28 night sales, in-store parties and e- 3. Energy Conversion Devices Inc. 62.99 68.41 -7.92 mail can point readers to book se- 4. Asset Acceptance Capital Corp. 10.89 11.81 -7.79 lections in the same vein. 5. Rockwell Medical Technologies 5.44 5.87 -7.33 “It’s about using a blockbuster 6. FNBH Bancorp Inc. 6.75 7.25 -6.90 book to bring people into the store,” 7. Saga Communications Inc. 5.63 5.90 -4.58 he said. 8. Valassis Communications Inc. 8.36 8.65 -3.35 Meyer’s series has sold briskly, 9. Perceptron Inc. 7.94 8.18 -2.93 Norris said, but Potter remains 10. General Motors Corp. 10.03 10.23 -1.96 the gold standard in book sales. Source: Bloomberg News. From a list of publicly owned companies with headquarters “Breaking Dawn sold about 1.3 in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading million copies on the first day. … at less than $5 are not included. but Harry Potter (and the Deathly DBpageAD.qxd 5/8/2008 10:15 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS August 11, 2008 Many Jobs Fund applications sent in with errors

LANSING — The cording to the MEDC. ply recommendations. In addition, the fund can give out in this year’s rate. She said the amount of mon- state’s latest round of The National Center for some applicants submitted propos- competition. ey sought by applicants now won’t 21st Century Jobs Fund Capitol Manufacturing Sciences on als that exceeded a 25-page limit, But that announcement didn’t be finalized until interviews are competition has had a Briefings Aug. 20 is scheduled to did not indicate a required third- reflect applications progressing completed. bumpy start. submit a list of proposals party financial match, failed to through the system that had not She said the state will make A majority of the 117 that should advance to outline conflicts with the board yet been logged in. Inclusion of whatever changes are necessary to applications received by an interview round, said that will make funding decisions, those applications boosted the fi- ensure that next year’s RFP is very the Michigan Economic Bridget Beckman, public or had other discrepancies with nal number of applicants to 117, clear. “There will be no ambiguity Development Corp. lacked information officer at the the state’s requirements. Beckman said. for the applicants.” full compliance with the MEDC. Even the total number of appli- In responses to the RFP, a few Stephen Rapundalo, executive state’s request for pro- She said initial review cations and amount of money applicants entered their entire op- director of MichBio, an Ann Arbor- posals, leaving the of the applications found sought has shifted. erating budget in a section asking based organization that drives agency conducting peer numerous issues, due in The MEDC initially said it re- the amount of money they were re- growth of the life-sciences indus- Amy Lane review of the proposals part to apparent ambigu- ceived 112 proposals seeking more questing from the state. That try, said he was not aware of any to reconcile differences between ity over what the state’s RFP word- than $475.7 million from Jobs threw off the funding tally, and major issues with the current RFP, the RFP’s requirements and infor- ing required of applicants and Fund, compared with the maxi- Beckman said the $475.7 million but he said that in general, speci- mation that was submitted, ac- what applicants thought were sim- mum $30 million in awards that previously announced is not accu- ficity, clarity and consistency in such a process is important. Of the proposals submitted to the MEDC, 52 are in life sciences, 30 are in advanced automotive, manufacturing and materials, 19 are in homeland security and defense, and 16 are in alternative energy. This year’s competition targets awards at for-profit companies that can provide matching funds and demonstrate viable, sustain- able business opportunities in the four sectors. The Ann Arbor-based NCMS is conducting peer review of most proposals and declined to comment for this story. A separate firm has been hired by the state to review six proposals from applicants that are either members of hap is ... NCMS or that are collaborating with an NCMS member, Beckman said. She said Business Engines, of Ann Arbor, will be paid $24,999 by ... your Michigan-based partner the state and was hired to avoid any potential conflict of interest. HAP is more than just a card you carry. HAP is your partner, creating solutions that go NCMS is scheduled to make funding recommendations on Oct. beyond your health care needs.We design affordable health plans with you in mind. 8 to the state Strategic Economic In- vestment and Commercialization Board, which will select winners Health Care Plans and announce final awards, in the All HAP plans offer: form of loans or convertible loans. s&LEXIBLEANDCOMPREHENSIVEBENEFITS s/NLINEHEALTHTOOLS s%XTENSIVENETWORKOFTHELEADING s$ISEASEMANAGEMENT Comings & goings doctors and hospitals s(EALTHEDUCATIONANDWORKSITEWELLNESS ■ Stephen Geskey, former chair- s0REVENTIVECARE s0LUS EMERGENCYCOVERAGEWHEREVERYOUTRAVEL man of the Michigan Employment Se- curity Board of Review, has become director of the Michigan Unemployment PPO Insurance Agency. He replaces acting 7ITHOUR00/ YOUGETTHEFLEXIBILITYTOSEEKCAREFROMPROVIDERSWITHINOROUTSIDEOFTHEPREFERREDNETWORK director Chris Peretto, who resumed WITHOUTREFERRALS4HISPOPULAR CONVENIENTPLANPROVIDESFREEDOMOFCHOICE ALARGENETWORKOFHOSPITALSAND his previous position as the physicians, emergency coverage wherever you go and preventive services – all at an affordable price. agency’s director of customer service. ■ Eric Restuccia, former appel- Individual Coverage late division chief in the Michigan SOLO offers great individual health coverage. It’s perfect for entrepreneurs, college grads, early retirees or those Department of Attorney General, has BETWEENJOBS 'OONLINEANDTAKEALOOK become the state’s solicitor general. He succeeds Tom Casey, who re- SM tired in late July. Value Plans Amy Lane: (517) 371-5355, Want to save at least 15% off your current health care premiums? Many businesses today are turning to [email protected] HAP’s Value PlansSMFORTHESAVINGS &INDOUTWHATTHOUSANDSOFPEOPLEALREADYKNOWABOUTTHEhVALUEvIN these plan designs. Medicare Advantage Plans HAP’s Medicare Advantage plans offer employers and Medicare-eligible individuals solutions with: BANKRUPTCIES s-EDICALANDPRESCRIPTIONDRUGCOVERAGEATANAFFORDABLEPRICE The following businesses filed for s0REVENTIVECARE Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Aug. 1-7. s%MERGENCYCOVERAGEWHEREVERYOUTRAVEL Under Chapter 11, a company files for s9OURCHOICEOFTHELEADINGDOCTORSANDHOSPITALS reorganization. Chapter 7 involves total liquidation. 9OULLENJOYAFFORDABILITYANDPEACEOFMINDATATIMEWHENYOUNEEDITMOST Lowe Enterprises Inc., d.b.a. The Fish Tank, 35114 Bock Road, Westland, voluntary Chapter 7. Assets and liabilities not available. 1 Reed Law Group, P.C., 115 /2 E. Liberty www.hap.org St., Ann Arbor, voluntary Chapter 11. Assets and liabilities not available. Valentin Co. L.L.C., 4259 S. Corrine St., Alliance Health and Life Insurance Company is a health insurance subsidiary of Health Alliance Plan. PPO is a product of Alliance Health and Life Insurance Company and HAP Preferred, Inc., both are wholly Canton Township, voluntary Chapter owned subsidiaries of Health Alliance Plan. Individual health plans (SOLO) are offered through Alliance Health and Life Insurance Company, Inc. Health Alliance Plan and Alliance Health and Life Insurance Company each have a Medicare contract with the federal government. 11. Assets and liabilities not available. — Compiled by Bernadine Stallings DBpageAD.qxd 8/5/2008 11:57 AM Page 1 DETROIT BUSINESS MAIN 08-11-08 A 8 CDB 8/8/2008 4:29 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS August 11, 2008 OPINION Granholm: Time for you to do your job

he chorus of voices calling for Detroit Mayor Kwame Kilpatrick to resign grew in volume and size last week. T But as we went to press, the mayor did not appear to be heeding the call. So it’s up to Gov. Granholm to use the power granted to her by law and the state constitution to remove the mayor from office. She can remove the mayor for “official misconduct” or “willful neglect of duty.” Surely the new assault charges and the jailing for a bond violation can give her the latitude to proceed. We’re not sure the city — and the region — can afford to wait until the governor’s scheduled hearing on Sept. 3. Plan better for power outages A series of storms this summer in June and July cost the companies providing electricity nearly $50 million to restore service. Of course, that sum doesn’t include the toll on businesses and residents affected by the power outages. As Amy Lane reports on Page 1, Detroit Edison has already spent $62 million for storm recovery; it budgeted $72 million for all of 2008. LETTERS Recovery costs could climb higher if the Michigan Public Service Commission requires utilities to invest in new outage remedies. The PSC staff will file a report by Aug. 22 on the util- Use the new media to inform ities’ response to the recent storms. In its defense, Edison already is blaming the emerald ash bor- Editor: about Michigan can and must er for some of the problems. Diseased trees were partly responsi- Crain’s Detroit Business It’s sad to watch The Detroit make a major push to enable and welcomes letters to the editor. ble for some of the damage to power lines during the storms. News struggle, though it’s happen- encourage citizens to inform one All letters will be considered for Mother Nature can’t be controlled, but how the state and its another through “self-generating ing to local newspapers across the publication, provided they are content” platforms such as blogs energy companies respond can be. A plan to reduce the impact country. To simplify Bill Shea’s signed and do not defame and social networking sites. In- of power outages should be a priority before the next high-im- excellent July 7 article (“More bad individuals or organizations. vestment of time, energy and re- pact event happens. news for The News”), Internet Letters may be edited for length sites such as Craigslist are start- and clarity. sources by civic, political and business leaders into this sector ing to dominate the market for lo- Write: Editor, Crain’s Detroit will foster the critical new media cal classified advertising. Publish- Business, 1155 Gratiot Ave., McElya’s money needs leverage ecology for our state. Such invest- ers have to make up for the losses Detroit, MI 48207-2997. Jim McElya, CEO of Cooper-Standard Automotive, wants by decreasing news and increas- ment will pay off by spurring on a E-mail: [email protected] vibrant civic culture that serves ing advertising within the paper. to raise $1 million for a new medical clinic for homeless and the information needs of our local The resulting degradation of the uninsured children and their mothers. is the primary reason that clumsy democracy despite the unfortu- news product fosters a vicious The story of this one-time foster child, told on Page 1, shows media companies such as Gannett nate demise of competitive mar- negative cycle that depresses the kets for local newspapers. how a successful executive can use business skills and connec- valuation of the asset and creates are in trouble in the first place. The problem in Michigan is greater Scott Aikens tions to make a difference. financial jeopardy. Birmingham To leverage the charity dollars even further, sponsors of the Such a course of events in local than elsewhere because, for what- new clinic might explore how it might eventually become a fed- news is particularly damaging ever reason, innovation in local Thoughts on recycling news and information over the In- erally qualified health center. Detroit has fewer such clinics here because good, deep coverage Editor: ternet using the Web, blogging, than most large cities, but the clinics get federal operating dol- is the life-blood of a desperately I agree with store owner needed, vibrant civic culture. YouTube, and social networking spokespersons like Ed Deeb lars and higher Medicaid reimbursements in exchange for pro- Now here’s the rub: The counter- sites like Facebook lags other (Michigan Food and Beverage As- viding primary care for the uninsured. The clinics can help re- trend to the demise of the newspa- states and metropolitan areas. sociation) that in the process of duce the patient load seeking care through hospital emergency per is the rise of the Internet. The Because a vibrant civic culture changing our state’s returnable rooms. shift in power from one to the other is critical here, those that care See Letters, Page 9

KEITH CRAIN: Will Detroit’s soap opera ever end? We were all supposed to enjoy charge, which they say ing to take for Mayor It may take a long time for him to We have watched this charade the national publicity of the PGA may go to trial within a Kilpatrick to under- understand that he alone is re- too long; it gets worse with every golf tournament. National televi- few short weeks. stand just how devastat- sponsible for his actions. passing day. Our sadness has sion was showing the wonderful I was out of town for ing his actions are for It is time for him to acknowledge turned to frustration, and our frus- course at Oakland Hills Country some of last week and the image of his city. He that he must step down for the tration has turned to anger. We Club in the shadow of the city of will be out of town for has single-handedly good of the community as well as cannot let our city burn while Detroit. some of this week as made this city into a the good of his family. Nero plays. Instead, we were subjected to na- well. The amount of laughing stock around It would be impossible for him Our governor seems to hold the tional ridicule once again caused ridicule that is being the world. That will be to do anything other than resign. only key that will give us the op- by the inappropriate actions of our heaped on Detroit and his legacy. The time is long past for any con- portunity to adjudicate some of the mayor. its people is quite sub- He may feel that he is sideration of stepping aside during issues. She must act. The mayor was fighting to get out stantial. being accused unjustly all of his court cases. He must And our civic leaders, who have of jail Friday — just in time to learn It is long past the time for the and that the world is out to get leave office. Then due process can remained silent, have to speak out. that he was being indicted once mayor to resign. him, but the truth is that he simply take its time without further dam- Their voices have been silent far again. This time on an assault I don’t know how much it’s go- has brought all of this on himself. age to our city. too long. DETROIT BUSINESS MAIN 08-11-08 A 9 CDB 8/8/2008 11:45 AM Page 1

August 11, 2008 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: The mayor isn’t our only problem A lot of ink and online chatter Transparency of con- The second issue is tem favors family dynasties or even find enough volunteers to circu- have been expended on the contin- tracts — criteria, who more troublesome: notoriety for the wrong reason. late petitions to collect the neces- uing soap opera of Detroit and its gets them and where the Where will the next gen- Remember Alonzo Bates? He’s sary 34,000 signatures. mayor. But as we went to press last companies are based — eration of leaders for in prison for fraud during his City As a Detroit resident, I’m embar- Friday, my thoughts focused on is an issue in everything mayor and council in Council tenure, but he was elected rassed I didn’t pay enough attention two issues not directly related to from regional talks on Detroit come from? De- to City Council after achieving no- to that drive, which is due Aug. 12. the current mayor’s troubles. expanding Cobo to work- troit voters have the toriety on the Detroit school board Democracy is not a spectator sport. First is the major roadblock to ing regionally on water chance to elect new for booking first-class air tickets You have to get involved. So in that acting regionally: suspicion of cor- and sewage operations. faces to council and the for school board junkets and being respect, we may, in fact, be getting ruption in city-related contracts. The Cobo case — as mayor’s office in 2009. found by a TV crew lounging at the leadership we deserve. Last week, Lou Pavledes, former di- well as the Synagro cor- I’m a fan of electing home when he was supposed to be rector of Cobo Center, and Karl ruption probe related to council members by dis- working as a recreation depart- Mary Kramer is publisher of Kado, the contractor Pavledes says Detroit City Council or tricts or wards. In most ment employee. He won a council Crain's Detroit Business. Catch her paid him kickbacks in exchange for the text messages showing the help major cities, candidates with good seat after that. take on business news at 6:50 a.m. work at Cobo, were indicted. Kado Christine Beatty gave contractor track records at a neighborhood or Unfortunately, a petition drive Mondays on the Paul W. Smith show has held many contracts at Cobo, Bobby Ferguson — provide plenty district level can run successfully. to create a ward system has lan- on WJR AM 760 and in her blog at for food service, electrical and jani- of ammo for suburban leaders not In Detroit, though, you need city- guished. The Detroit chapter of the www.crainsdetroit.com/kramer. torial services, among others. to work regionally. wide name recognition, so the sys- League of Women Voters couldn’t E-mail her at [email protected].

LETTERS CONTINUED ■ From Page 8 bottle-deposit laws we should put in place a total recycling program to include steel, aluminum, plas- tic, glass, paper, newspapers, paper and other recyclables (“Retail- ers, trade groups fight expansion of bottle deposit rules,” June 30; Letters: “Give sellers more for un- returned containers,” July 14; and Letters: “Don’t expand deposit law,” July 21). And rather than burdening store owners with having to process all of these additional returnables, let’s set up reclamation centers in each community that would handle all these items. Let’s allow existing nonprofit agencies to be the sites for these centers and in the process earn some money and create some additional jobs in the process. I would add two dimensions: 1. At each of the reclamation centers, provide a special room, with built-in safety features, where, for $5, a person could come in and smash a few glass bottles against a wall as a means of letting off steam, a stress reduction exercise. Many cultures over the cen- turies have had similar “rituals” to relieve stress, and God knows we have a lot of stress in our lives today. And today, also, persons go to a psychiatrist and the patient is told to beat on a pillow to relieve stress and often at a cost of $150 an hour. And, hey, if the person brings his/her own glass bottles, there would be a discount. 2. Water for the arts. Our cultural institutions are scrambling to find steady sources of funds to support our cultural arts treasures and resources. Keeping in mind that Detroit’s water is probably as pure and healthy as 70 percent of all bottled water, why can’t we work out some mechanism where- by Detroit water is bottled, with buy-in from perhaps Pepsi Cola and Coca-Cola, and a decent portion of the profits go to the arts? This means that when you go into the gas station, convenience store or supermarket, you have an easy way to support the arts by buying a product labeled “Water for the Arts,” or another catchy name. If groups like the Michigan United Conservation Clubs and ArtServe Michigan could join forces, it just could happen. I’m serious. Richard Thibodeau Waterford Township DBpageAD.qxd 3/26/2008 11:58 AM Page 1

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August 11, 2008 CRAIN’S DETROIT BUSINESS Page 11 A CONVERSATION WITH Wellness programs: Good investment? Success of company wellness programs depends on worker Dr. Ronald buy-in and patience for return on M. Davis, investment. Page 11. American Medical Association Health care

Halfway into his term earlier this year as president of the American Medical Association, OUTSTANDING PHYSICIAN ACHIEVEMENT preventive medicine specialist Dr. Ronald M. Davis, 52, was diagnosed with pancreatic cancer. As director of the Center Crain’s honors for Health Promotion and Disease Prevention at Henry Ford Health System in Detroit, Davis became a patient while he continued his AMA duties. He is undergoing chemotherapy to halt the spread of the cancer, now in his liver. Reporter Jay Greene spoke with industry heroes with Davis, now immediate past president of the AMA. What is the biggest challenge facing physicians who want to Winners lead fight against cancer, provide high-quality care? The nation must have a fair and affordable health system that child obesity, care for the uninsured provides access to high-quality medical care. Preserving and improving access to care is at the nnovation and compas- center of the American Medical sion are the common qual- Association’s strategic vision. … I ities in this year’s group Our long-term view includes working with government and of Health Care Heroes. private payers so that every One directs new cancer American has health insurance drug research, providing and can choose their doctor and new hope to some patients. health plan. CORPORATE ACHIEVEMENT How do physicians deal with One tirelessly works to in- sometimes overwhelming needs of crease access to care for the treating the poor in economic uninsured. Another is lead- down times? Nearly 70 percent of American physicians provide ing the fight against child- charity care, but for many patients PHOTOS BY NATHAN SKID/CRAIN’S DETROIT BUSINESS hood obesity. And yet anoth- Dr. Paul Ehrmann, Family Health Care Center of Royal Oak. without health insurance, the sad er provides much-needed truth is that they simply won’t Page 12. come in for a doctor’s appoint- hands-on care to Detroit’s ment until they are in a health homeless. crisis. The AMA is pushing for OUTSTANDING CONTRIBUTIONS IN ALLIED HEALTH The winners were chosen national reform. Physicians refer poor and low-income uninsured in four categories: Outstand- patients to a variety of programs ing Physician Achievement; that, if they qualify, will offer them Allied Health (honoring ex- assistance with medical bills or get them signed up for insurance. emplary work by a nonphysi- What are the important new cian caregiver); Corporate developments or trends that have Achievement; and Advance- the greatest chance of improving ment in Health Care. medicine? Advancements in molecular biology and vaccinology This year’s judges were: will have an enormous impact on Vernice Davis Anthony, Lucille Smith, Voices of Detroit medicine over the next decade. president and CEO of the Individual genetic profiles will Initiative. Page 15. improve the ability to identify and Greater Detroit Area Health treat those who may be at risk for Council. ADVANCEMENT IN HEALTH CARE diseases. Putting more focus on Dr. Manuel Valdivieso, preventive care and healthy lifestyle counseling, and developing chief medical officer and as- and implementing clinical sociate director, clinical af- performance measures are key. fairs, Barbara Ann Karmanos Has your view of medicine changed since your diagnosis of Cancer Institute. pancreatic cancer? I have a Dr. James Forshee, chief greater appreciation for team medical officer, Molina Health- care. I’ve had wonderful care from physicians representing many care of Michigan. specialties, and from oncology Mary Jo Hollebrands, nurs- nurses, registered dieticians, ing supervisor at Macomb genetics counselors, and many others. Some teams work well, Oakland Regional Center. and others do not. We must Judges abstained from vot- ensure that teams operate within Dean Carpenter, Tumaini Center. Page 13. ing on candidates from their a framework based on good communication, coordination and employer. cooperation.

If you know someone interesting you CELEBRATE HEALTH CARE HEROES SEPT. 4 would like Jay Greene to interview, Join us as we celebrate the fifth annual Crain’s Health Care Heroes featured in this call (313) 446-0325 section. The Sept. 4 luncheon is from 11:30 a.m. to 1:30 p.m. at the MSU Education or write jgreene@ Center in Troy and is to include a panel discussion with the winners. The presenting crain.com sponsor is Fifth Third Bank. Tickets are $40 before Aug. 22; $55 after. Register at crainsdetroit.com/events. Dr. Patricia LoRusso, Barbara Ann Karmanos Cancer Insitute. Page 14. DETROIT BUSINESS MAIN 08-11-08 A 12 CDB 8/8/2008 11:10 AM Page 1

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FOCUS:HEALTH CARE

OUTSTANDING PHYSICIAN ACHIEVEMENT Fighting childhood obesity JAY GREENE CRAIN’S DETROIT BUSINESS

Childhood obesity is a problem Dr. Paul Ehrmann has seen first- hand in 27 years as a primary care physician at his Family Health Care Center of Royal Oak. It isn’t just the likelihood of dia- betes or hypertension later in life that concerns him, there also are problems such as low self-esteem and behavior problems. In 2002, Ehrmann founded the ALL SIGNS point TO KITCH. Children’s Health Initiative Program, a wellness initiative that encourages In the business of healthcare, you want lawyers who know your industry children to eat healthier and exercise. CHIP brings together schools, from the ground up. At Kitch, you’ll find that full-service firm you’re looking for. health care providers, businesses Dr. Paul Ehrmann leads a program to encourage healthy lifestyles for kids. Respected lawyers dedicated to listening to their clients. Experienced in solving the and municipal governments. In two pilot programs, CHIP has tion” found that obese kids had most difficult issues. Prepared to handle everything from sophisticated joint ventures taught about 60 children in the slightly greater behavioral prob- third, fourth and fifth grades in to complex professional liability disputes. Successfully and cost-effectively. lems than children with cancer. Royal Oak and Southfield how to With the rise of the Internet, the When it’s expert advice you need, let a proven leader show you the way. buy healthy groceries, make nutri- growth of single-parent families tional meals and exercise. and the de-emphasizing of physi- Ehrmann recruits health care cal education in schools, the num- providers and professionals such bers of obese kids also have more as dietitians, trainers, chefs and than doubled over the last 25 years. sometimes professional athletes to “There are more socioeconomic work with kids in school settings. barriers today to exercising and “We are trying to work with eating nutritious foods,” Ehrmann school districts to get healthier said. “Those who live in impover- choices in vending machines and ished areas may not have access to 313.965.7900 www.kitch.com in school lunches,” Ehrmann said. healthy food, and the environment His new book, Generation XL — is unsafe for fitness.” The Childhood Obesity Pandemic: Parents need to be role models A Community Based Solution, is to to their kids, he said. Otherwise, be released this fall. “The book he fears, the number of obese kids lays out how organizations can de- will continue rising. velop this kind of program and The Atlanta-based Centers for how to sustain it,” he said. Disease Control and Prevention says Conquering childhood obesity the number of overweight children would have a huge impact on be- age 6-11 rose to more than 20 per- havior as well. At least one study cent in 2007 from 7 percent in 1980. has shown “it is more painful for The rate among adolescents age 12- kids to be overweight than go 19 more than tripled to 16 percent through chemotherapy,” Ehrmann from 5 percent during this period. said. A 2003 survey in the “Journal Jay Greene: (313) 446-0325, of the American Medical Associa- [email protected]

HONORABLE MENTION: PHYSICIAN ACHIEVEMENT Caring for developmentally disabled children Pediatric neurologist Dr. David year project awaits pending grants. Benjamins has helped children As the only pediatric neurologist with developmental disabilities in at the institute, Benjamins will run the Detroit area for more than the new clinic. He’ll lead a team of three decades, and in 2009 he’ll nurse practitioners, and maybe oth- open Detroit’s er doctors, toward providing com- only develop- prehensive health care for children mental clinic for with developmental disabilities. He children with also will be able to train interns neurological im- and residents — a part of his job he pairments. says is his favorite. The neurode- “He could have gone anywhere velopmental he wanted,” said Dr. Eileen Dono- clinic is still in van, institute medical director. the planning “His service in Detroit is the best stages, but Ben- testament to how he’s helped make Benjamins jamins sees it as health care available (in the city).” a refinement of what he does at De- Benjamins, 67, began at the DMC- troit Institute for Children. Children’s Hospital of Michigan and “It would be a clinic to both diag- worked at the nonprofit institute nose the problem, if we can, and to through a charitable arrangement treat it and then follow up,” he said. between the department of pedi- “(Disabilities we treat) could be re- atrics and a Wayne State University tardation, cerebral palsy, attention program. Now he’s contracted at deficit disorder, or autism.” the institute full time, and the non- Benjamins and the institute are profit has provided a platform for working to secure funding for the his neurodevelopmental clinic. clinic. The more than $250,000-per- — Christiana Schmitz DETROIT BUSINESS MAIN 08-11-08 A 13 CDB 8/8/2008 10:23 AM Page 1

August 11, 2008 CRAIN’S DETROIT BUSINESS Page 13

FOCUS:HEALTH CARE

OUTSTANDING CONTRIBUTIONS IN ALLIED HEALTH Bank where ONE-on-ONE care Nurse practitioner helps is standard business practice

We’ll help you nurture the homeless, head to toe a healthy business BY JAY GREENE At Level One Bank we know how to CRAIN’S DETROIT BUSINESS care for the financial well-being of your business. Because like you, we built ours Dean Carpenter was puzzled from scratch. From free consultations to when a 42-year-old woman ap- greater account protection, our complete peared at the Tumaini Center in De- business banking services are wholly troit complaining about her feet. committed to your success. She said they were painful and de- scribed the sensation as tingling. • Our business bankers make "house calls.” Carpenter, 51, a registered nurse They bring the bank to you, so you can for 24 years who for the last five has stay focused on your business specialized as a family nurse practi- • One-on-one personal attention tioner, examined her feet. They with direct access to senior bank were pale, wrinkly and waxy. management “She got caught in a freezing rain and her socks and boots got wet. • Best-in-class technologies, including She had been walking around in Remote Capture them for three days,” he said. “I Learn more about our complete business banking services at knew it wasn’t frostbite because it Dean Carpenter began collecting socks hadn’t been that cold. I researched for patients at the Tumaini Center after www.levelonebanking.com - or call 248-737-0300 or 888-880-5663 treating a woman with trench foot. it and was surprised what I found.” It was trench foot; the same “They love it.” Dr. Issac Grinberg Southfield, MI trench foot U.S. soldiers in World The Tumaini Center, at 3430 “Our group of physicians wanted to start a new venture. War I came down with by the thou- Third St. in Midtown, is operated Level One invested a lot of personal time to help us put sands. Severe cases developed gan- by the Detroit-based nonprofit together a financial forecast. They worked with us as a grene and required amputation. Neighborhood Service Organization. team more than a lender and a borrower.” “It could have been prevented Carpenter also works three days Dr. Issac Grinberg- Cardiologist THE ONE BANK for the one and only you. with dry socks,” he said. a week in the chest pain center in 30201 Orchard Lake Rd., Farmington Hills, MI 48334 In the summer of 2006, Carpenter the emergency department at the www.levelonebanking.com started to collect spare socks to University of Michigan Health System hand them out at the clinic. He put a in Ann Arbor. He works two 10- “socks box” on his porch and col- hour shifts at the Tumaini Center lected 100 pairs the first year. on Tuesdays and Thursdays. Last year, Carpenter enlisted “We see a host of pathologies en- the support of a local businessman demic to the homeless population,” in his home town of Chelsea. That he said. “Lice and scabies, also com- effort garnered 400 pairs. plications from gunshot wounds, “We pass them out to people who simple lacerations I sew up, and a need them at the clinic,” said Car- lot of victims of violent crimes.” penter, who noted he has diagnosed Jay Greene: (313) 446-0325, four other people with trench foot. [email protected]

HONORABLE MENTION: ALLIED HEALTH A nurse who mentors, inspires Ana Lawrence has a passion for self,” said Laura Lenihan, a super- mentoring and inspiring fellow visor of the specialty infusion and nurses. transplant team. In Detroit, there’s one In her own words, she’s “done the When Lenihan went to work on a way to face down risk... gamut.” She’s been a hospital nurse new program called SITT, a still-de- at DMC Sinai-Grace Hospital. She’s veloping transplant- and infusion- worked in public health nursing at care training program, Lawrence A business insurance the Ann Arbor VA was behind her 100 percent. Despite Medical Center, hiring mishaps and extra work, expert you can trust. the Community Lawrence never gave up, Lenihan Jim Merkel, Director of Sales Health and Social said. The program has been run- Services Center of ning at Henry Ford for three years. Detroit, and the She has earned a Henry Ford Oakland County Health Systems Outstanding With a degree of integrity and understanding that’s unmatched, our Detroit Health Depart- Leader award, a HFHS Shadow of a team will work to protect and advance your interests with the best possible ment. She now is Leader award, a HFHS Shadow of risk management and employee benefit plans available. clinical manager Influence award, and a Wayne State of home health University Michigan Top Nurse Lawrence We continue to build one of the nation’s strongest insurance agencies, care at Henry Ford award. She also won an award for Health System. Her work is mostly work on the hospital’s inpatient re- never losing sight of the importance of local business knowledge. Learn behind the scenes, but she has been design team. more about Wausau Signature Agency by contacting Jim Merkel, recognized with several awards. Lawrence, 59, also interprets for 800.782.0012 x620 or visiting www.WausauSA.com/Detroit. Lawrence heads the maternal- doctors with Spanish-speaking pa- child and wound and ostomy (a sur- tients, and has helped translate hos- Better Options. Easier Decisions. gical procedure that creates an pital documents. While at the Com- opening for waste) programs, in ad- munity Health and Social Services dition to the infusion and trans- Center, she taught Spanish-lan- plant team and the intake team in guage nursing classes, and she has the home and health care division. volunteered at the Covenant Commu- “She’s got a trap door mind for nity Health Care Clinic in Southwest remembering things that I want to Detroit to nurse and translate. ©2008 Wausau Signature Agency. All rights reserved. do and goals (that I have) for my- — Christiana Schmitz DETROIT BUSINESS MAIN 08-11-08 A 14 CDB 8/8/2008 11:46 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS August 11, 2008

FOCUS:HEALTH CARE

ADVANCEMENTS IN HEALTH CARE HONORABLE MENTION: ADVANCEMENTS IN HEALTH CARE Finding options for cancer patients System helps schedule patient JAY GREENE for widespread commercial sale. vaccinations, chronic care needs CRAIN’S DETROIT BUSINESS About 15 percent of patients who apply for trials are eligible based on A University of Michigan Health a form of pneumonia, to older Dr. Patricia LoRusso, chief re- medical criteria, such as having ad- System innovation gives doctors’ adults to prevent infection. searcher at Barbara Ann Karmanos equate blood counts and function- offices a hand in keeping tabs on Offices can use the system to Cancer Institute, lost both parents to ing organs. Patients who volunteer patient immunization schedules mail reminders to patients and cancer during her youth. for Phase I clinical trials have failed and chronic care needs. create phone lists for nurses to “My mother had what is now a traditional cancer treatment. UM Drs. Donald Nease, contact those in need of screen- curable lymphoma,” said LoRusso, “It takes us three hours to do the Michael Klinkman and Lee ings or vaccinations. 52, who has been with Karmanos workups on patients to see if they Green devel- “It is easy to forget. Most of the for more than 20 years. “Since I was are eligible, and six hours of tests oped Clinfo- time, primary care physicians a teenager, I wanted to develop before they see us,” she said. Tracker, now are seeing patients at least every anti-cancer drugs.” While LoRusso has saved the renamed Cielo 15 minutes and addressing all As director of Phase I clinical tri- lives of many suffering from can- Clinic, a soft- medical issues plus other chron- als at Karmanos, LoRusso manages cer, she said the toughest job is ware package ic diseases,” said Nease. a department of about 40, including telling someone they have no more and tracking Cielo Clinic is also used to rec- another research physician, a options. “I have to tell them their system used ommend and administer services pharmacologist, several medical only other option is supportive care for clinical re- for chronic diseases such as dia- scientists and support staff. or hospice.” minders. betes, asthma, congestive heart Dr. Patricia LoRusso has been The program tests drugs in hu- But LoRusso lives for the time “When we failure and depression. involved in the clinical development of Nease mans and makes sure they are “safe during the trial when patients be- drugs such as Ixempra and Tykerb, started in fall UM licensed the system to in combination with other drugs, used to fight breast cancer. gin to respond to the drugs. 1998, all the guidelines at that Cielo MedSolutions L.L.C., in Ann what the food effect is, how the body “It is pretty amazing. Many of the time were getting so numerous Arbor, through its technology responds to the drug,” she said. mono-therapy use, and others work new drugs in development today that it was difficult to keep track transfer program. St. John Health LoRusso has been involved in the in combination to shrink tumors are targeted, more focused on the of each patient’s schedule,” said System and practices of the Oak- early clinical development of five of and improve a patient’s quality of pathways,” she said. Nease, associate professor at the land Southfield Physicians Group the past nine anti-cancer drugs to life,” she said. Zometa, a drug While controversial to some, one UM Department of Family Medi- have already upgraded their of- become commercially available. LoRusso’s team worked on, does development is the use of embryon- cine. fices with the technology. Two include Ixempra, an anti- not shrink cancer, but it improves ic stem-cell therapy. Early data in- Cielo Clinic is used to alert The original developers of the breast cancer drug approved by the quality of life by delaying or re- dicates stem cells can be used to doctors when Medicaid patients software remain paid consul- U.S. Food and Drug Administration last ducing bone complications. combat such cancers as leukemia, under the age of 2 are due for tants on Cielo’s advisory board, year, and Tykerb, another drug On average, anti-cancer drugs breast and prostate. mandatory lead screenings. The advising the company on the fu- used for metastatic breast cancer. are tested for eight years in clinical Jay Greene: (313) 446-0325, system also reminds doctors to ture direction of the software. “Ixempra works by itself as a trials before they receive approval [email protected] give vaccines for pneumococcus, — Bernadine Stallings FINALLY, YOU HAVE A CHOICE

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August 11, 2008 CRAIN’S DETROIT BUSINESS Page 15

FOCUS:HEALTH CARE

CORPORATE ACHIEVEMENT HONORABLE MENTION: CORPORATE ACHIEVEMENT Advocate offers a voice for the uninsured Alternative cure for back pain JAY GREENE tal ERs to enroll them in the ini- Chrysler L.L.C., Henry Ford Health manager of Chrysler’s disability CRAIN’S DETROIT BUSINESS tiative’s database for follow-up on Systems and Health Alliance Plan of and health care medical programs, primary and preventive care. Michigan developed a pilot pro- and Matt Walsh, associate vice As executive director of the Its current project is to create gram to help employees and pa- president of purchase initiative for Voices of Detroit Initiative the past electronic medical records for the tients with chronic back pain. HAP, nearly 100 employees en- 10 years, Lucille Smith is most 40,000 uninsured and underin- The pilot program, called rolled in the program. proud of the collaborative rela- sured people it has enrolled. “We’ve Got Your Back,” was creat- Over six months, participants tionships she has built among the Through an $817,000 federal grant, ed by Dr. Robert Levine, director of learned somatic movement re-ed- city’s safety-net providers. the initiative is providing elec- the Center for Integrative Wellness at ucation routines that teach the “We have been able to convince tronic medical record information Henry Ford. brain to release muscle tension. the federal government to increase Levine devel- Somatics centers on learning new the primary care delivery capacity systems to clinics and primary care physicians who are partici- oped the con- patterns of muscle control. in Detroit,” said Smith. “We have cept and re- Levine also instructed partici- the second-largest population in pating in the program. Earlier this year, Smith, 62, co- searched pants on home healing activities the region after Chicago, and we patient bene- and guided relaxation. The pro- have fewer federally qualified authored a book, Taking Care of the Uninsured: A Path to Reform, with fits and cost gram is meant to be an alternative, health centers than cities smaller savings of us- or a next step, to physical rehabili- than us, like Cincinnati and Indi- several other Detroit primary care advocates. ing alternative tation or prescription drugs. anapolis. medicine to Over the course of the therapy, Lucille Smith works to foster The book describes how a Voices “We started with six clinics (in cooperation among agencies that treat back program staff collected data to of Detroit-led project in Detroit Levine 1998), and now we are up to 17,” she provide care to the uninsured. pain. Levine monitor stress levels, sleep quality helped provide more than 33,000 said. “We have made good began in 1994 researching cures for and any reduction of depressive formed in 1998. The organization low-income uninsured people with progress, but our coordination is- his own back pain, which seemed symptoms that can also cause pain. now includes the Detroit Health De- access to health care. n’t as cohesive as we’d like because to resist standard treatments. Fifty-five percent of participants partment, the Wayne County Health we have capacity issues at the fed- Smith has served as senior vice “Traditional medicine was not reported eliminating discomfort Department, Detroit Medical Center, erally qualified health centers.” president for the now-defunct offering any good solutions,” he completely, while 86 percent re- Henry Ford Health System, St. John Of Wayne County’s 1.9 million Southeast Michigan Health & Hospi- said. “Often times, it doesn’t al- duced pain, according to Levine. Health System, Oakwood Healthcare residents, there are an estimated tal Council, program director with ways cure people’s pain. Medicine National figures provided by and several of the federally quali- 300,000 people without health in- the Greater Detroit Area Health Coun- needs to eliminate pain, not only HAP show that “these results surance and another 390,000 in the fied health care centers. cil and director of hypertension manage it.” could translate into $1,500 or more state Medicaid program. One of the chief goals of the ini- services for the Michigan Public Chrysler, based in Auburn in annual medical cost savings for To help address rising numbers tiative is to link uninsured people Health Department. Hills, began trying holistic group each employee who remains pain- of the uninsured and underin- with primary care providers. It Jay Greene: (313) 446-0325, muscle therapy in 2007. Champi- free.” sured, Voices of Detroit was does this by working with hospi- [email protected] oned by Dr. Teresa Bartlett, senior — Bernadine Stallings ANpageAD.qxd 8/6/2008 11:54 AM Page 1

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SANDEEPUnless MITTAL, you surround MD yourself • JOHN with the M. right MALON people.E, JR., D • ROBERT T. MORRIS, MD • J. EDSON PONTES, D • ISAAC J. POWELL, MD • WILLIE UNDERWOOD ,MD • MICHAEL L. CHER MD • GUNTER DEPPE, MD • MARY A. KOSIR, MD • JEFFREY A. TRIEST, MD • Every surgeon here is a cancer surgeon. Each one is on the faculty RAHULof VAIDYA, Wayne State University MD Medical• JOHN School, givingM. BARNWELthem access to the L, MD • latest technology and techniques. So when you need expertise, ask JOHN R.your JACOBS, doctor for a referral, MD call • 1-HO-SHENG800-Karmanos or visit LIN,karmanos.org MD • ROB-

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Page 18 CRAIN’S DETROIT BUSINESS August 11, 2008

FOCUS:HEALTH CARE Wellness programs’ savings depend on participation

BY JAY GREENE associate director with McGraw CRAIN’S DETROIT BUSINESS Wentworth, a Troy-based employee benefit firm. Companies see value, but can’t say how much Companies now have two choic- However, employee participa- BY JAY GREENE with financial payoffs taking at least three years, said es if they want to offer wellness tion rates typically are lower with programs to their employees — CRAIN’S DETROIT BUSINESS Hans Brieden, a vice president in charge of wellness the insurance products than the with Alcos, a Sterling Heights-based employee benefits convenient workplace programs more convenient workplace well- While a majority of employers in a recent survey or health insurance products that and financial services company. ness programs, said Edington. said they could not identify return on investment for “People in HR are hesitant to push these pro- promise lower costs if healthy Lower participation rates can lim- their wellness programs, three Southeast Michigan habits are followed. grams ... because of the tremendous expense and the it long-term health and business employers said they have achieved positive results. difficulty in establishing return But which approach is best for cost savings, he said. In a 2008 survey of 376 area employers, 43 percent employers? on investment,” he said. “Employers should share premi- said they felt wellness programs offered value, but During the first year of its well- Both approaches have pluses um savings with employees, give just 14 percent of companies said they could identify and minuses, said Dee Edington, ness program in 2004, Co-op Net- them half of the savings, as an in- ROI, said McGraw Wentworth, a Troy-based employee work, a Southfield-based credit director of the University of Michigan centive to participate,” he said. benefit firm. Four percent felt costs exceeded savings. Health Management Research Center union service organization, saved “This can help bring up participa- From 2003 to 2006, St. John Health in Warren used a $22,833 in health care costs for a in Ann Arbor. The center con- tion rates” to that of workplace wellness program designed by Wellco Corp., a Troy- tracts with employers and insur- 162 percent ROI, said Michele wellness programs. based vendor, with 1,000 employees identified as Langley, Co-op’s manager of hu- ers to offer online health risk as- Alter said workplace wellness having high-risk medical conditions. sessments, and it provides man resources. Co-op paid Wellco programs offer savings that are The seven-hospital system saved 62 percent on med- Brieden return-on-investment assess- $1,200 per month for the program. measured over time. ical costs for a 3-to-1 ROI, said Darlene Ephraim, the Employees improved their health in a number of ments. “In most cases, it is two to three system’s corporate director. St. John paid Wellco Edington said success often de- areas by signing up for Weight Watchers, joining years before an employer can be- about $50,000 annually for the program. walking programs and participating in nutrition pends on employee participation gin to measure the impact of a In 2006, St. John brought the wellness program in- and what an employer wants to ac- and stress management programs, Langley said. wellness program on health care house, opened it to all employees and got similar While the program saved money and was popular complish — save money quickly claims,” she said. positive results. with premium reductions, or offer among employees, Langley said, the company termi- Workplace wellness programs “The program is designed to get them whatever nated the program in 2006 for budgetary reasons. employees convenience and save have an advantage because they services they need to optimize their care,” said Dr. money over time with lower med- “We noticed absenteeism and health plan costs are on-site and can offer conve- Andrew Vosburgh, St. John’s corporate medical di- ical costs. went up in 2007. I would like to bring the wellness nient health risk assessments and rector for wellness and occupational medicine. “We Health insurers can offer em- program back,” she said. screening tests, including choles- work with them with health coaches to break down ployers immediate savings on pre- Co-op’s experience is not uncommon. Ten percent terol and blood pressure, Edington the barriers to care.” miums — 10 percent to 13 percent to 20 percent of companies will drop out during the said. “The downside is there can While many companies are investing in workplace — with the potential of reducing first year because they don’t get immediate benefits, be high startup costs, and the sav- wellness activities such as discounted health club future medical costs through im- said Scott Foster, Wellco’s corporate wellness expert. memberships, wellness programs can be expensive Jay Greene: (313) 446-0325, [email protected] proved health, said Karen Alter, See Wellness, Page 19

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FOCUS:HEALTH CARE Wellness: Companies’ savings depend on workers’ participation ■ From Page 18 ings accrue over time,” he said. their benefit package. Begun earlier this year as a pilot to stay healthy or become healthy. healthy lifestyle choices and lower But the key to success for both Blue Care’s Kevin Klobucar, project with Ford Motor Co., HAP’s The plans also offer financial in- medical costs.” approaches is ongoing employee vice president of products and Health Engagement program offers centives to encourage their mem- Employers that want to offer participation coupled with finan- marketing, said the HMO devel- members a wellness insurance bers to take online health assess- wellness programs at the job site cial incentives. oped Healthy Blue Living on a re- product in which they can save on ments. can contract with vendors who of- “It is important to have appro- quest from the Detroit Regional out-of-pocket expenses by agreeing But members must register for fer wellness programs or who help priate incentives that encourage Chamber. to adopt a healthy lifestyle, said mandatory health risk assess- companies develop their own pro- employees to Within the first six months, Michael Flasch, ments online and then, if recom- grams. participate in Healthy Blue had signed up 48,000 vice president of mended, register for specific well- HealthMedia in Ann Arbor con- these pro- members. By May, 73,000 members product develop- ness programs. Experts say tracts with employers and insur- grams,” Alter had joined the HMO plan. The ment. participation rates range from 50 ance companies to offer online said. Incentives product is designed to give em- Premium sav- percent to 80 percent for the online health risk assessments and could include ployers a 10 percent reduction in ings can range health risk assessments, but 30 health coaches. If the assessment premium sav- health insurance premiums and from 5 percent percent to 40 percent for the online identifies a high-risk medical con- ings with em- cut employees’ co-payments by to 12 percent wellness programs. dition, that employee is flagged for ployees or $25 to about 20 percent. from the stan- “There is only so much the on- intervention. $100 cash bonus- In July 2007, Priority Health be- dard HMO line vendors can do on the phone,” “We emulate the health coach- Alter es to take risk gan offering HealthbyChoice Incen- Flasch group plan de- said Edington. “Some health plans ing session on the Web, but there assessments. tives to give employers an opportu- sign, Flasch make one phone call to coach the is no coach. We do it in an auto- In October 2006, when Blue Care nity to save 13 percent on said. member. I question whether that mated fashion,” said CEO Ted Network began offering a special- premiums under a combined rate, By May, Health Engagement will change a person’s lifestyle.” Dacko of HealthMedia. “We appeal ized insurance product — Healthy dual-benefit design, said Leon had signed up five employers with During the first 90 days, mem- to those interested in privacy and Blue Living — that featured a well- Lamoreaux, vice president of prod- 20,000 members, he said. bers must complete an online convenience who don’t want to call ness program to promote and offer uct development. “We always offered health im- health risk appraisal, see their the personal coach.” financial incentives for healthy be- “The insurance product has provement initiatives through the doctor and agree to adopt a healthy Whatever strategy employers haviors, other Southeast Michigan grown very successfully over the base HMO core product,” Flasch lifestyle. If members don’t com- choose, studies show that employ- insurers took notice. past year,” Lamoreaux said. “We said. “The HMO product engages plete the requirements, they are ers with effective wellness pro- Within 15 months, Priority Health have 500 employers making it the employee, our member, in im- bumped to the standard plan and grams can expect to see 500 per- in Farmington Hills and Health Al- available to the employees.” proving their health. It also re- pay higher co-payments and decent lower absenteeism, 400 liance Plan in Detroit followed suit By May, HealthbyChoice Incen- quires the employer to be involved ductibles. percent fewer disability claims with similar products. tives had signed up 18,000 mem- with having a smoke-free work en- “This is not a program where and 350 percent lower health care The three health plans said en- bers, and it expects that number to vironment.” you will see dramatic results the costs, according to Watson Wyatt, a rollment for the wellness products double this summer, Lamoreaux Under all three plans, members first year,” Flasch said. “Employ- New York-based human-resources are higher than expected and will said. Employees who choose are automatically enrolled in the ers will get immediate results consulting firm. continue to grow as more employ- healthy habits can cut their co- benefit plan, which offers lower co- through premium reductions, but Jay Greene: (313) 446-0325, ers offer the programs as part of payments in half, he said. pays and deductibles as incentives it takes time to reap the benefits of [email protected]

AND THE DIFFERENCE BETWEEN MY PRACTICE FLYING OR FLOPPING. While other banks just kept saying, “We’re great at cash management,” my Citizens banker took the time to explain exactly what cash management was. Now, I know I do need it. I also needed a sweep account, remote deposit capture and so much more. DETROIT BUSINESS MAIN 08-11-08 A 20 CDB 8/7/2008 4:28 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS August 11, 2008

CRAIN'S LIST: LARGEST GROUP HEALTH CARE PLANS Ranked by 2007 revenue

No. of No. of No. of Total Total enrolled enrolled enrolled Company Revenue Revenue enrolled enrolled members in members members in No. of Address Phone; Web site ($000,000) ($000,000) Percent members members Percent HMO/DHMO in PPO POS members in Rank Top executive 2007 2006 change year-end 2007 year-end 2006 change plan plan plan other plans Name of group health care plans/types Blue Cross Blue Shield of Michigan/ $19,400.0 B $16,300.0 B 19.0% 4,629,097 C 4,570,981 C 1.3% 648,278 D 3,247,693 62,211 670,915 Traditional Blue Cross Blue Shield, Blue Blue Care Network Preferred PPO, Community Blue PPO, 600 E. Lafayette Blvd., Detroit 48226 Healthy Blue Incentives PPO, Blue Care 1. (313) 225-9000; www.bcbsm.com Network of Michigan HMO, BCN Healthy Daniel Loepp, president and CEO Living, Flexible Blue plans compatable with health savings accounts, MyBlue products in the under-65 individual market, Medicare Advantage, Part D Prescription Drug plans Delta Dental of Michigan 1,974.4 1,939.0 1.8 NA NA NA NA NA NA NA Delta Dental Premier, Delta Dental PPO, Farmington Hills and Lansing DeltaCare, DeltaVision 2. (517) 349-6000; www.deltadentalmi.com Thomas Fleszar, president and CEO

Health Alliance Plan 1,611.5 1,677.5 -3.9 537,689 568,711 -5.5 358,980 129,301 2,098 47,310 HMO, PPO, POS, EPO, Self-Funded, 2850 W. Grand Blvd., Detroit 48202 Medicare plans 3. (313) 872-8100; www.hap.org Patricia Richards, interim CEO

CVS Caremark Corp. L.L.C. 638.4 595.8 7.1 1,311,259 1,250,513 4.9 0 0 0 1,311,259 Prescription drug plans 30200 Telegraph Road, Suite 401 4. Bingham Farms 48025 (866) 864-9600; www.caremark.com Jason Klein, vice president, sales

Molina Healthcare of Michigan Inc. 560.3 468.6 19.6 209,111 NA NA 209,111 0 0 0 Medicaid, Medicare 100 W. Big Beaver Road, Suite 600, Troy 48084 5. (888) 898-7969; www.molinahealthcare.com Jesse Thomas, president

Great Lakes Health Plan 414.0 261.9 58.0 160,502 142,619 12.5 160,502 0 0 0 Medicaid HMO 17117 W. Nine Mile Road 6. Suite 1600, North Park Plaza, Southfield 48075 (800) 903-5253; www.glhp.com Chris Scherer, president and CEO

Humana 397.0 332.6 19.4 170,000 172,800 -1.6 NA NA NA NA PPO and Medicare plans 3150 Livernois, Suite 175, Troy 48083 7. (248) 680-8920; www.humana.com Denise Christy, president, Humana, Michigan

American Community Mutual 345.0 343.2 0.5 146,596 44,467 229.7 0 132,594 NA 14,002 HSA, HRA and other consumer-directed Insurance Co. health insurance products 8. 39201 W. Seven Mile Road, Livonia 48152 (734) 591-9000; www.american-community.com Michael Tobin, CEO and president

Health Plan of Michigan Inc. 310.8 204.7 51.8 133,250 119,149 11.8 133,250 0 0 0 Medicaid 777 Woodward Ave, Detroit 48226 9. (313) 324-3700; www.hpmich.com David Cotton, president and CEO

Priority Health 244.0 306.4 -20.4 60,000 NA NA NA NA NA NA HMO, PPO, POS, Medicare, HRAs, HSAs, 34605 12 Mile Road, Farmington Hills 48331 and HealthbyChoice 10. (800) 852-9780; priorityhealth.com Michael Koziara, vice president eastern regional office

Total Health Care Inc. 181.7 140.0 29.8 66,059 63,840 3.5 66,059 0 0 0 HMO 3011 W. Grand Blvd., Suite 1600, Detroit 48202 11. (313) 871-2000; www.totalhealthcareonline.com Lyle Algate, Executive director

Midwest Health Plan Inc. 166.7 122.2 36.5 64,487 64,000 0.8 64,487 0 0 0 HMO 5050 Schaefer, Dearborn 48126 12. (313) 581-3700; www.midwesthealthplan.com Mark Saffer, CEO

Vision Service Plan VSP 42.4 29.1 45.4 NA 998,500 NA NA NA NA NA Vision insurance 2000 Town Center, Suite 725, Southfield 48075 13. (248) 350-2082; www.vsp.com M. Scott Mitchell, account executive

SVS Vision Managed Care Inc. 36.0 35.6 1.1 402,000 442,053 -9.1 NA NA NA NA SVS Vision Managed Care 140 Macomb, Mt. Clemens 48043 14. (586) 468-7370; www.svsvision.com Robert Farrell, president

Co/op Optical Vision Designs 18.5 17.7 4.4 805,653 NA NA 600,000 NA NA 205,653 Co/op Optical Vision Plan 2424 E. Eight Mile Road, Detroit 48234 15. (313) 366-5100; www.coopoptical.com Jackee Smith, CEO and president

This list of leading Detroit-area group health care plans encompasses medical, dental, optical and other health care organizations. For companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties, the figures are for the entire business. For companies with headquarters elsewhere, the figures are for business in Southeast Michigan only. NA = not available. B Total of premiums and premium equivalents that include both fully insured and self-funded business. C Does not include members that are part of Michigan-based groups but residing outside of Michigan. D Includes members belonging to Blue Care Network subsidiaries. LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH DBpageAD.qxd 8/4/2008 10:27 AM Page 1 DETROIT BUSINESS MAIN 08-11-08 A 22 CDB 8/7/2008 4:29 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS August 11, 2008 BUSINESS DIARY ACQUISITIONS valve seats and guides for several vehicle manufacturers. Modern Professional Services, a Troy- based technical staffing service, has The National Center for Manufactur- acquired Quality Technical Services ing Sciences, Ann Arbor, has formed Inc., a Mobile, Ala.-based staffing and The Robotics Technology Consortium, recruiting service. Quality Technical a nonprofit subsidiary to speed the de- Services will continue to operate as velopment and deployment of innova- Quality Technical Services L.L.C. tive defense ground robotics technolo- with offices in Houston, New Orleans, gy. and Greenville, S.C. Verizon Wireless, Southfield, has opened at 17370 Hall Road at the Par- CALL FOR APPLICATIONS tridge Creek Mall in Clinton Town- The Delta Dental Foundation, Okemos, ship. Telephone: (586) 228-4977. encourages nonprofit oral health pro- Tri-County International Trucks Inc., grams in Michigan to apply for grants an international commercial truck through its third annual Community dealership, has opened a new parts Mini-Grant program. Up to $70,000 and service facility in Ypsilanti. The will be awarded in 2008 with a maxi- 21,033-square-foot building features mum of $5,000 per grant. Special con- shop space for 12 trucks with expand- sideration will be given to applicants ed work areas, a paint booth, an exten- whose programs focus on improving sive parts showroom and an on-site the oral health of low-income chil- technician training room. dren. Application deadline: Sept. 30. For applications and more informa- LITERATURE tion, visit www.deltadentalmi.com or call (517) 347-5333. The Livingston County Convention and Visitors Bureau, Howell, has launched CONTRACTS its interactive online visitors guide to the county’s attractions. The technolo- S3 Entertainment Group, a Ferndale- gy allows visitors to flip through the based film services production compa- pages of the guide online. Other tech- ny, has retained the services of Identi- nologies are to be added to the bu- ty Marketing & Public Relations, reau’s Web site in the future. Web site: Bingham Farms, to provide market- www.lccvb.org. ing and public relations support. Kirco Construction, Troy, has awarded MOVES Soil and Materials Engineers Inc., Ply- mouth, a contract to provide construc- Bossdev, an interactive company that tion materials services for Village develops social media and online ap- Lakes in White Lake Township. plications, has moved its headquarters from St. Clair Shores to Troy. H.V. Burton Co., a Livonia manufacturer’s representative firm, an- LaFontaine Buick, Pontiac, GMC and nounced a sales partnership with the Cadillac, to 4000 W. Highland Road in Joseph M. Day Co., a Saginaw-based Highland Township. firm that serves customers in central Tipping Point Inc., an advertising, and northern Michigan. The compa- marketing and public-relations nies will promote and represent boiler agency, from Birmingham to products, waste heat recovery prod- Rochester. Telephone: (248) 955-0007. ucts, water treatment programs and Web site: www.tippingpoint.us. related equipment and services. Wynne-Jones Associates to the South Ensure Technologies Inc., Ypsilanti, Adams Square, Birmingham. Wynne- announced PC Mall Inc., of Torrance, Jones Associates are QuickBooks Ad- Calif., will include Ensure’s XyLoc vance ProAdvisors and a QuickBooks Solo product on the PC Mall Web site point-of-sale provider. and in its catalog. Spin Advertising Inc. of Ann Arbor has NAME CHANGES been retained by Elias Cummings De- Michigan Orthopaedic Specialty Hos- velopment of New York to create the pital in Madison Heights has been re- Web site for 11 Spring, a historic named restoration and condominium project DMC Surgery Hospital. in Manhattan. Saleen Inc., Troy, announced its Race- Hobbs + Black Architects, Ann Arbor, craft brand has become the Racecraft It’s not easy being green.. announced the design and completion Division of performance vehicles. of Oakwood Healthcare System’s Be a part of Southshore Medical Center. NEW PRODUCTS NLM, a Detroit logistics company, re- Controlled Power Co., a Troy manufac- WKH*5((1 0RYHPHQW newed an agreement with Ford Motor turer of commercial, industrial and Co., Dearborn. NLM will remain a medical electrical power solutions, provider for Ford’s critical shipments announced its “NetMinder” UPS man- ZLWKDQDGLQCRAIN’S 6HSWHPEHULVVXH (excluding air charter) and truckload agement and monitoring software deviations for North America. suite. The suite is compatible with the As companies throughout Southeast Michigan step up their efforts to be greener, Global LT, a language and cultural ser- company’s uninterruptible power vices company headquartered in supply products,as well as its central- DGGPRUHJUHHQWR\RXUSURÀWOLQH 7KLVLVVXHZLOOJLYHCrain’s 492,600* print and Troy, and Mango Languages, an on- ized emergency lighting inverters. ZHEUHDGHUVWLSVDQGLQIRUPDWLRQRQJURZLQJDGREENER business: line language learning software company, jointly announce the appoint- STARTUPS ment of Global LT as an authorized Peek-A-Bootique, a children’s clothing 8VLQJOHVVHQHUJ\UHGXFLQJFDUERQ 6PDUWJUHHQHIIRUWVWKDWFXW marketer of Mango Languages’ pro- prietary Web-based language training and gift boutique, has opened in the HPLVVLRQVDQGZDVWH RSHUDWLQJFRVWV programs. Web sites: www.global- Boardwalk Shopping Center on Or- lt.com or www.mangolanguages.com. chard Lake Road near Maple Road in 5HF\FOLQJRSWLRQV +RZWRFUHDWHDVXVWDLQDEOHEXVLQHVV West Bloomfield Township. Owners Tanner Friedman, Farmington Hills, 7KHXVHRIUHQHZDEOHHQHUJ\ :DVWHWRHQHUJ\LQLWLDWLYHV and sisters Marla Bednarsh and Alisa has chosen to offer The Designate, a Berke feature more than 50 designer Who should advertise? Birmingham-based on-call profession- names. The boutique also has a spe- al chauffeur service as a new employ- cial area to entertain children while ee benefit. The public-relations 7KLVLVVXHFRXOGEHLPSRUWDQWWR\RXLI\RXDUHLQYROYHG their parents shop. Telephone: (248) agency is enrolled in The Designate’s 935-4503. ZLWKFRQVWUXFWLRQHQHUJ\DOWHUQDWLYHHQHUJ\ELRIXHOV corporate program, which allows a UHF\FOLQJGHYHORSPHQWFRPSDQLHVFRPPHUFLDOUHDO company-paid ride home in an employee’s own car after an evening out. HVWDWHHQYLURQPHQWDOUHKDELOLWDWLRQHQYLURQPHQWDOODZ Wagner Design Associates, an Ann IARY GUIDELINES HGXFDWLRQ UHVHDUFKHQYLURQPHQWDODFFRXQWLQJDQG Arbor advertising and graphic design D firm, completed a new Web site, capa- Send news releases for Business HQYLURQPHQWDOEDQNLQJ bilities brochure and industry propos- Diary to Joanne Scharich, Crain’s als for Krieghoff-Lenawee Co., an Detroit Business, 1155 Gratiot 3ODFH\RXUDGWRGD\E\FDOOLQJ RU Adrian-based commercial construc- Ave., Detroit, MI 48207-2997 or tion company. send e-mail to jscharich@crain. HPDLOXVDWDGYHUWLVLQJ#FUDLQFRP com. Use any Business Diary item EXPANSIONS as a model for your release, and ,VVXH'DWH6HSW Federal-Mogul Corp., Southfield, is look for the appropriate category. $G&ORVLQJ$XJ now producing pistons at its new Pow- Without complete information, your ertrain Energy business segment fa- item will not run. Photos are -DQ0DUFK0HGLD$XGLW cility in Araras, Brazil. The 10,300- welcome, but we cannot guarantee square-meter “greenfield” facility they will be used. produces pistons, camshafts, and DETROIT BUSINESS MAIN 08-11-08 A 23 CDB 8/8/2008 11:13 AM Page 1

August 11, 2008 CRAIN’S DETROIT BUSINESS Page 23 PEOPLE CALENDAR CONSTRUCTION How to Become a Government Con- lister, (248) 855-7799. WEDNESDAY tractor. 9 a.m.-noon. Procurement Debi Patrick to IN THE SPOTLIGHT Technical Assistance Center of business develop- AUG. 13 Schoolcraft College. A class on doing Third Thursday Networking. 4-6 p.m. ment manager, M. Safwan Badr has been named . The city of Southfield, South- American Business Women’s Associa- business with the state and the federal Aug. 21 specialty con- executive vice president and chief field Chamber of Commerce and The tion. 6:15 p.m. Meeting of the Novi government. Schoolcraft College, tracting division, medical officer of the Detroit Engineering Society of Detroit. Pi Oaks Charter Chapter. Meets every Livonia. $40. Contact: (734) 462-4438. Barton Malow Medical Restaurant, Southfield. Free. Contact: second Wednesday of the month. Co., Oak Park, Center, Rochelle Freeman, (248) 796-4161. from business de- effective Aug. Crowne Plaza Hotel, Novi. Contact: velopment man- 26. www.abwa-novi.org. MONDAY How to Market Your Business. 8:45 a.m.- ager, TIC-The In- Badr, 49, will AUG. 18 dustrial Co., Ann 12:45 p.m. Aug. 27. Service Corps of Re- retain his How to Finance Your Business. 6-8 Arbor. Java/Grub Events. 5:30 p.m. tired Executives. Southfield Public Li- position as a p.m. Eastern Michigan University Patrick Java/Grub & Community, Re/Biz brary. $45. Contact: (313) 226-7947. professor of Michigan-Small Business & Technolo- DISTRIBUTORS internal Net, and Community/Urban Transi- gy Development Center. Designed to tion Ltd. Real estate, business, and en- Gary Hibbler to medicine at Detroit Lions Kickoff Luncheon. 11:30 discuss the sources of funding includ- trepreneur networking events on var- corporate con- Wayne State ing personal savings, family, friends, a.m.-1:30 p.m. Aug. 27. Detroit Eco- troller, Atlas Oil ious financial topics. Java/Grub nomic Club. Rod Marinelli, head Badr University second mortgages, credit cards, non- events are held every Monday except Co., Taylor, from School of Medicine and division bank microloans, special government coach, the Detroit Lions. A portion of holidays. The JavaExchange Cafe, the proceeds benefit Think Detroit controller, Metal- chief for pulmonary, allergy, critical loans, grants from government, angel TechOne Building, Detroit. Free. Con- PAL. Cobo Center, Detroit. $55 mem- dyne Corp., Ply- investment, and venture capital. East- care and sleep medicine. He’ll tact: (313) 832-4211. bers, $60 guests of members and non- mouth. ern Michigan University MI-SBTDC, step down as associate chair of members. Contact: (313) 963-8547. the department of internal Detroit. $30. Contact: (313) 967-9295. EDUCATION medicine. Jane Hammang- Badr replaces Thomas Malone, COMING EVENTS ALENDAR GUIDELINES Buhl to dean of who was recently appointed THURSDAY C Hibbler professional stud- president of DMC-Harper Hospital AUG. 14 More Calendar items can be found ies, Marygrove and DMC-Hutzel Women’s Hospital. University of Michigan After-hours on the Web at www.crainsdetroit. College, Detroit, from chairperson of Alfred P. Sloan Awards. 11:30 a.m.-2 Networking. 5:30-7:30 p.m. Aug. 20. com. Please send news releases the business and computer informa- Badr attended medical school at the University of Damascus in Syria p.m. Detroit Regional Chamber. The UM Greater Detroit Alumni Chapter for Calendar to Joanne Scharich, tion systems department. Also, Karen Alfred P. Sloan Awards recognize and completed his residency at and Oracle. David Olivencia, an Execu- Crain’s Detroit Business, 1155 Wood to director of communications businesses with 10 or more employees Cook County Hospital in Illinois. He tive Insight Program director and Gratiot Ave., Detroit, MI 48207- and marketing, from vice president, which exhibit exceptional workplace member of last year’s class of Crain’s completed a fellowship in 2997, or e-mail jscharich@ manager of editorial services, Comeri- flexibility and employee effectiveness Detroit Business 40 under 40; and Soo- ca Bank, Detroit. crain.com. You also may submit pulmonary and critical care programs. MGM Grand Detroit. Free. jin Kwon Kho, director of admissions medicine at the University of Calendar items in the Calendar Contact: Robert Troutman, (313) 596- at the Ross School of Business. Oracle- section of crainsdetroit.com. FINANCE Wisconsin in Madison. 0478. Troy, Troy. Free. Contact: Dana McAl- Chet Mowrey to partner, Pricewater- Badr is board certified in internal houseCoopers, Detroit, from director. medicine, pulmonary medicine, Ron DiCicco to re- critical care medicine and sleep tail senior vice medicine. president for the Troy area, Inde- Hotel Palomar, Dallas. pendent Bank, Petie Davis to business unit manager, Troy, from re- sustainability programs, NSF, Ann gional president, Arbor, from business unit manager of Citizens First environment, health and safety ser- Bank, Farming- vices. ton Hills. Aaron Buck to IT REAL ESTATE operations man- DiCicco ager, Burns & Geoffrey Linden to director of finance, Wilcox, Farmington Hills, from direc- Agree Realty Corp., Farmington Hills, tor of IS operations and technical ser- from senior financial analyst, Brook- vices, Genesys PHO, Flint. dale Senior Living, Chicago. William Robinson Jr. to president, At- HEALTH CARE torneys Title Agency L.L.C., Farming- Sven Gierlinger to ton Hills, from Michigan manager, administrator, Talon Group, Okemos. hospitality services, Henry Ford SERVICES West Bloomfield Hospital, West Gerie Greenspan Bloomfield Town- to director of com- ship, from vice munity relations, president of mu- Glacier Hills Inc., seum operations, and director of an- the Detroit Insti- nual fund, com- tute of Arts, De- munications and Gierlinger troit. events, Glacier Daniel Frattarelli Hills Foundation, to director of pedi- Ann Arbor, from atrics education, associate director Oakwood Hospital Greenspan of development, and Medical Cen- University of ter, Dearborn, Michigan Museum of Art, Ann Arbor. from assistant professor of pedi- Steve Dion to president, Droste Group, atrics and clinical Troy, from chief human resource offi- pharmacology, cer, Credit Acceptance Corp., South- Wayne State Uni- field. versity, Detroit; Frattarelli and senior staff physician of pedi- PEOPLE GUIDELINES atrics and emergency medicine, Hen- ry Ford Hospital, Detroit. Announcements are limited to management positions. Nonprofit MANUFACTURING and industry group board Brian McGuire to president of Mono- appointments can be found at gram Aerospace Fasteners, TriMas www.crainsdetroit.com. Send Corp., Bloomfield Hills, from presi- submissions for People to Joanne dent of Norris Cylinder. Also, Jerad Scharich, Crain’s Detroit Business, Introducing David Yurman to Tapper’s Twelve Oaks Van Auken to president of Norris 1155 Gratiot Ave., Detroit, MI th Cylinder, from general manager. 48207-2997, or send e-mail to Join us for a launch party on Saturday, August 16 [email protected]. Releases NONPROFITS must contain the person’s name, Robert Bartlett to president, Michigan new title, company, city in which Colleges Foundation, Southfield, from the person will work, former title, senior management consultant to col- former company (if not promoted leges, universities and other nonprofit from within) and former city in . ... organizations, Memphis, Tenn. which the person worked. Photos West Bloomfield 248.932.7700 Novi 248.465.1800 www.tappers.com Elliott Broom to vice president, muse- are welcome, but we cannot um operations, The Detroit Institute of guarantee they will be used. Arts, Detroit, from hotel manager, the DETROIT BUSINESS MAIN 08-11-08 A 24 CDB 8/8/2008 11:36 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS August 11, 2008 Strategy set up Michigan Financial for growth in hard times

BY JAY GREENE experienced (insurance Besides insurance, Michigan Financial of- they are doing with financial planning,” El- CRAIN’S DETROIT BUSINESS sales) reps and add more fers a variety of other services, including ston said. “Generally, agencies focus on services that would be ap- employee benefit design, asset management, health and life. There also is the financial In a thriving economy, many people don’t pealing to them,” Valenti individual money management and estate side and the property casualty line. It is not often think about their long-term invest- said. Since 2004, the com- planning. About one-third of the company’s unusual for an agency to expand into any ments and retirement planning. pany has grown from 29 to revenue comes from insurance and the re- one of those three.” But when economic times turn sour, they 49 reps with 55 total em- mainder from asset management services, Elston said one reason Michigan Finan- are more inclined to seek financial advisers ployees, he said. Kneip said. cial may have decided to expand into finan- as they worry their nest egg won’t sustain Aside from hiring addi- But the growth strategy required a major cial planning is because of the competitive them in an uncertain future. tional reps, Valenti said capital infusion, and a business affiliation While most financial planners bemoan market in Southeast Michigan. Valenti three of the company’s name change. “It is very difficult to acquire new busi- this phenomenon, a down economy in key growth strategies in- For eight years, Valenti headed the Farm- ness with companies downsizing and going Southeast Michigan is one reason why cluded hiring a financial ington Hills office of W.S. Griffith Securities out of business,” she said. “It all comes Southfield-based planning coordinator, Inc., a broker-dealer based in San Diego. down to service. We are doing more cus- Michigan Financial Bryan Mulvihill, to ad- At the time, Michigan Financial was affil- tomer service than before. We have 99 per- OntheGrow Cos. is flourish- vise the representatives; iated with Phoenix Life Insurance Co. But in cent retention rate with our clients.” ing. a vice president of mar- May 2004, Phoenix Life decided to sell W.S. On the Grow is a With the automobile industry contract- feature that will Over the past keting and operations, Griffith and leave the investment broker- ing, another growth line has been offering appear in most issues four years, Michi- Kim Stine, to promote the dealer business. highlighting growing gan Financial’s business; and a vice presi- “It was difficult for a few months simply career transition services, Stine said. companies, large and revenue growth dent of new business de- trying to decide who we wanted to affiliate Family-business succession planning also small. Know of a increased 211 per- velopment, Kevin Kneip, with and the uncertainty,” Valenti said. “In has been a key growth area, said Kneip. company you think cent, to $8.1 mil- Stine to coordinate growth our business, you have to be affiliated with For example, Valenti said a former client Crain’s should write lion in 2007 from strategies. in his 50s, who was the founder of a manu- about? Contact someone to stay in business.” facturing business, died unexpectedly. Managing Editor $2.6 million in Financial planning at Several suitors quickly materialized, in- Andrew Chapelle at 2004. the company is a process cluding New York Life Insurance Co. and John “Four years before we did a financial, [email protected]. The company is that begins with an analy- Hancock Life Insurance Co. of Boston. business and estate plan for him. This alan insurance sis of an individual’s in- “We chose John Hancock because of their lowed the business to stay in the family be- agency specializ- vestment portfolio and stability and they helped us with access to cause he had thought about who his succes- ing in financial planning and wealth man- economic situation. capital,” Valenti said. The company signed sor would be,” Valenti said. agement. It also has offices in Sterling The analysis includes the agreement with John Hancock in June Without a succession plan that included a Heights, Dearborn, Birmingham and two in several meetings to evalu- 2004. life insurance policy, the 25-employee busi- Ohio. ate the client’s specific fi- The growth strategy now employed by ness could have closed, Valenti said. But there is another reason why Michi- Kneip nancial goals and objec- Michigan Financial has caught the eye of “The insurance money allowed them to gan Financial is doing well: The growth tives, Kneip said. competitor Kathy Elston, COO of J.S. Clark pay their bills and buy them time to work strategy that CEO Nick Valenti implement- “We are the quarterback,” said Kneip. Agency, a Southfield-based broker-dealer through the change,” he said. ed in 2004. “Our approach is to help you and give you specializing in life and health insurance. Jay Greene: (313) 446-0325, “Our business plan was to grow by hiring great ideas.” “We are just getting to understand what [email protected]

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Page 26 CRAIN’S DETROIT BUSINESS August 11, 2008 Crews lead race to prep Belle Isle for Grand Prix BY BILL SHEA concrete barrier walls, 10,000 tires plete on 35 chalets. renowned sporting events. We’re sales are up is because Toronto CRAIN’S DETROIT BUSINESS for barriers and 50,000 feet of tem- Chalet rentals range from going to be in front of hundreds of and Cleveland won’t have open- porary fencing along the 2.07-mile, $27,500 to $105,000. millions of households over a wheel auto racing for the first time While crews today are repairing 14-turn street circuit track. The This year’s races will have 69 three-week period.” in 20-plus years, and fans will be the well-trod fairways and greens old race, run corporate sponsors, up 10 over last The race and golf tournament taking special trains to Detroit at Oakland Hills Country Club in from 1982 to year, Denker said. are good for the area, which Pierce from Ontario. Rock bands Sugar Bloomfield Township, site of last 2001, used down- “It’s amazing, especially with said helps the bank beyond just Ray and Everclear will be perform- th week’s 90 PGA Championship, oth- town streets. the PGA right in front of us,” he marketing efforts. ing on the island, too. ers are hastily preparing Belle Isle Six grand- said. “Companies have stepped up “It’s another initiative that helps Ticket information is available for metro Detroit’s next big sport- stands to hold and helped this year.” us in regional revitalization,” she at detroitgp.com. ing event. some of the He declined to offer a specific rev- said. “Our organization wanted to After spending $5.5 million on in- The Detroit Belle Isle Grand Prix is 100,000-plus peo- enue projection, but did say rev- support that. Yes, it’s branding and frastructure and aesthetic improve- set for Aug. 29-31, and everything is ple expected for enue is up 9 percent over last year. great marketing, but frankly, it dri- ments on the island in 2007, Penske ahead of schedule, said Bud Denker, the races al- As for the wider economic impact, ves our local economy.” is laying out $500,000 for further up- race chairman and a senior vice Denker ready are up. the races should bring $60 million Ticket sales are ahead of last year. grades this year, Denker said. president for Bloomfield Hills- Penske ordered to $75 million into the area, he Seventy-five percent of the 27,000 “After the race, we’re going to based Penske Corp. His boss, Penske the seats increased from 18 to 21 added. It was estimated last year at daily tickets have been sold, Denker repave the back of Belle Isle. Corp. founder Roger Penske, inches wide, Denker said. $53 million by the Detroit Metro Con- said. Race officials declined to give We’re going to fix the drainage sys- brought the open-wheel auto race Corporate sponsorship also has vention and Visitors Bureau. an attendance number for last tem there.” back to Detroit last year after a six- grown, despite the PGA Champi- One significant Grand Prix year’s races, which included Ameri- The Albert Kahn-designed casi- year hiatus. onship’s presence earlier in the sponsor is Charter One, which has can Le Mans Series and open-wheel In- no is getting spruced up, and there “We’re ahead of plan, about four month and Michigan’s tough econ- 119 branches in Michigan and has dyCar Series, but did say it was more will be more lighting added and or five days, in terms of getting omy, Denker said. teamed with parent Royal Bank of than 100,000 for the three days. landscape work done. things set up on the island,” Just a single 50-person corpo- Scotland to use both the Grand Prix A new attraction for fans this Penske and DTE Energy Corp. are Denker said. “We learned a lot rate hospitality chalet remains and PGA Championship as mar- year is the addition of a SCCA Pro working together to repair the from last year.” available out of the 45 on the is- keting opportunities. Racing SPEED World Challenge vandalized Scott Fountain to the Crews have been setting up 2,000 land. Construction is already com- “We were always planning on GT Championship race on Sunday. tune of $100,000. Denker said the being involved in both,” said San- The race features Cadillacs, fountain will be operating in time dra Pierce, president of Charter Vipers, Mustangs, Corvettes and for the race. One. “The Grand Prix further so- Porsches. Bill Shea: (313) 446-1626, MARKET PLACE lidifies Detroit as a host of world- Denker said another reason [email protected]

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VIDEOCONFERENCE SERVICES 100 Kercheval Avenue, Suite A BY NATHAN SKID Grosse Pointe Farms, MI 48236 Complete Videoconference Services Job Interviews, Legal Depositions, Business Meetings CRAIN’S DETROIT BUSINESS www.rkinternationalinc.com Convenient Troy Location, 3 Rooms, 1-200 Capacity Phone: (313) 886-4492 Midwest Video 248-583-3632 www.midwestvideo.com Seattle-based Starbucks Corp.’s recent decision to close eight FILE STORAGE EQUIPMENT & stores here as part of a nationwide MERCHANDISE retrenchment was a reminder that Large scale (MAXI) storage units. Great for RV’s, boats, cars, warehousing. 14 x 14 door, heated, 24/7 location still matters, even when entry, secured. Buy/Lease - I-94 & 26 Mile Area OFFICE FURNITURE you have one of the nation’s best- 800-945-5816/www.stclairstoragecondos.com known brand names. MUST SELL, OFFICE CLOSED FINANCIAL SERVICES Desks $99, Chairs $39, Files $49, Partitions $50, Matt Knio, owner of Birming- Lateral Files $99, Cubicles, Office Phone Systems ham-based Cannella Patisserie and Call (248) 548-6404 or (248) 474-3375. CAPITAL AVAILABLE Creperie, knows that lesson well. Knio is a graduate of the Acade- If you have an opportunity that requires TELECOMMUNICATIONS funding but does not fit traditional mie de Versailles in France and be- banking parameters - contact us. We do LUCENT . . . AVAYA. . . PARTNER. . . gan his career as a pastry chef for MAGIX. . . VOIP. . .LEGEND . . . not fund senior/mezzanine debt or the Ritz-Carlton in Paris. working capital. We focus on special MERLIN. . .SPIRIT Systems/Parts New/refurbished. Omnicall Equipment Corp. (248) 848-9282 situations with investment size ranging In 2002, six months after moving $500K to $10 million. Total WE HAVE USED PHONES to the Dearborn Ritz-Carlton, he committed capital of $100 million. We Nortel, Lucent, phone systems. Almost any new or NATHAN SKID/CRAIN’S DETROIT BUSINESS have an in-house legal team, can think used phone available. Expert installation available. decided to open a pastry and coffee Call (248)548-6404 Matt Knio of Cannella Patisserie and Creperie found out the hard way that "outside the box" and act quickly. shop in the Applegate Square location is critical to survive in business. Please refer to www.etccapital.com Advertise your goods and services in Shopping Center at 29681 North- or call 248-560-0203 ext. 101 western Highway in Southfield. Row and last year generated marketing, great operators, and a for more information. Crain’s Detroit Business $580,000 in revenue and expanded great product can make a B or a C “Honestly, I believed in my operations to include selling pas- property perform like an A site.” product to the point that I thought tries wholesale. This year, he ex- Biggby continues to double in people would continuously buy my pects to surpass $600,000 in rev- size every two years. Its 100 stores product if they just tried it,” Knio enue. in nine states generate $40 million said. “The reality is that location He has opened an industrial in revenue; 66 more are in some is the most important factor. You kitchen in Hamtramck, and a sec- stage of completion. can’t just trust your product, you ond store at 711 S. Main St. in Roy- And even Starbucks plans more have to trust your location.” al Oak is due to open in January in stores here. The site wasn’t very visible from a joint venture with Cloverleaf, a Joe Dallacqua, regional vice the road, which meant he couldn’t premium wine seller. president of Starbucks’ Great take advantage of the heavy traffic “Our previous location had no Lakes and New England regions, that passes by each day. foot traffic. It would have taken a said the company will open two By the end of 2004, just 1½ years lot of advertising to succeed new stores in metro Detroit by the after opening, Knio had drawn there,” he said. “Honestly, I did end of the year. only $110,000 in total revenue. He not have enough money for that.” “Real estate is a lot more art than considered returning to the Ritz- Tom Butz, vice president of op- science. When looking for a loca- Carlton or leaving Michigan to re- erations for East Lansing-based tion, a most educated guess is open in France. Biggby Coffee, has a somewhat dif- made,” Dallacqua said. “But some- “The only reason I didn’t make ferent view. times markets move and economics the move was because a customer “Location is important, but we change. Many factors go into the came to me and said, ‘This needs to have a store in Kalamazoo that is sales life of an individual store.” be in Birmingham.’ ” not on the best piece of real estate,” Nathan Skid: [email protected], Knio opened at 300 Hamilton he said. “However, word of mouth (313) 446-1654 DETROIT BUSINESS MAIN 08-11-08 A 27 CDB 8/8/2008 10:27 AM Page 1

August 11, 2008 CRAIN’S DETROIT BUSINESS Page 27 Plans for Waterford Twp. baseball team round second, head for third

BY CHRISTIANA SCHMITZ County Cruisers. They’ll be based at Heroes has al- Stadium construction is expect- and Summit North Investments for SPECIAL TO CRAIN’S DETROIT BUSINESS the new stadium, called Diamond at ready invested. ed to begin this month or in Sep- 500 spaces. Additional shared the Summit, next to the Summit Baseball He- tember. parking will come from Oakland Plans for a minor-league base- Place Mall, according to the plans. roes also hired In the off-season, the Cruisers’ County Schools. ball team are coming together for A financial package to fund the Dave Miller as a manager and some players will staff The agreement will mean Baseball Heroes of Oakland County stadium and team is in progress. part-time consul- a baseball academy across from the shared parking and shared cost of L.P., a group formed in January to Baseball Heroes hired Leonard Capi- tant, Hilliard team’s retail outlet in Summit Place maintenance, Hilliard said, and bring a $9.5 million ballpark to Wa- tal Markets of Troy and Dickinson said. He retired Mall. Baseball Heroes signed a 10- will allow stadium signs along terford Township. Wright P.L.L.C.’s Ann Arbor office to in 2004 after 37 year lease for the 14,576-square-foot Telegraph Road, Hilliard said. Baseball Heroes purchased the work on an equity and debt financ- years with the space in July. The business is to Baseball Heroes hired Royal Midwest Sliders, a Frontier League ing package. Hilliard Detroit Tigers. open in November. team, in January. They’re operat- Rob Hilliard, president and COO Miller had been director of baseball A shared parking agreement for Oak-based FX Architecture for de- ing the Sliders as a travel squad of Baseball Heroes of Oakland administration and senior adviser the stadium was finalized last sign and Farmington Hills-based during the 2008 season. County, said that the package will of minor leagues for the Tigers. month. Baseball Heroes made a McCarthy and Smith as construction Come opening day 2009 — sched- make up the difference between The effort will bring 15 full-time deal with Timina L.L.C., which owns manager. Construction bids will uled for mid-June — the Midwest the cost of the $9.5 million stadium and 60-80 part-time jobs to Oakland Summit Place Mall, for 800 spaces, be awarded over the next few Sliders will become the Oakland and the $4 million that Baseball County, Hilliard said. and with Summit West Investments weeks, Hilliard said. REAL ESTATE

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Page 28 CRAIN’S DETROIT BUSINESS August 11, 2008 Auto sales slow down after rush for lease deals BY NANCY KAFFER same car as buying it,” he said. “It was al- have been slow, but he’s not sure that’s tied change),” he said. “I thought. ‘Wow, you CRAIN’S DETROIT BUSINESS most identical. We can sell you a truck at 50 to the end of Chrysler-backed leasing. dummy, what are you doing now? Three percent off right now.” “I think it’s consistent with early-month years of planning, and your work is for noth- Following a rush in sales at the end of Chrysler is offering zero percent interest traffic,” LaFontaine said. “Typically, re- ing.’ ” July, some metro area auto dealers say Au- for 72 months on select vehicles, steep dis- gardless of what happens over last 30 days, But once the smoke cleared, Viviano said gust is shaping up to be slow. counts off sticker prices, cash back and you’re busy at the end of the month and al- he expects his dealership’s renewed empha- Chrysler Financial L.L.C., the financial ser- lease loyalty incentives toward purchase, ways slow to get started. There are still a lot sis on commercial sales to bear fruit — com- vices arm of Chrysler L.L.C., announced last while GMAC is offering cash incentives on of customers out there.” mercial vehicles are often business necessi- month that it would end its leasing program GMC trucks and on some new crossovers LaFontaine said dealers will have to work ties, not discretionary spending, he said. Aug. 1, and GMAC Financial Services said it and cars. hard to keep customers. Cole said the Detroit 3 are well-positioned would restrict its lease offerings, reducing Such discounts should drive business “One of the most important things leasing to move forward. the number of below-standard-rate leases in from leasing to buying, said David Cole, ex- did over the last 15 to 20 years was discon- “The domestics have taken so much of the the U.S. and ending GMAC-financed leasing ecutive director of the nect a lot of people from their loyalty,” he costs out, that once the new labor contracts in Canada. Center for Automotive Re- At Sterling Heights Dodge, Chairman Tony said. “They’re just loyal to their monthly kick in they should be profitable,” he said. search, an Ann Arbor- Viviano says he attributes slow traffic in part payment, not a car, manufacturer or dealer. “It’s a much more robust business model for based nonprofit automo- to a late-July rush of customers eager to snag … We’ve done a real good job of keeping cus- the longer term. With the cost-down that is tive think tank — but Cole a deal before the leasing program ended. tomers loyal to us, but it’s going to make it occurring, they’re positioning themselves fi- cautions that such prices “It hasn’t been a rip-roaring week,” he important for dealers to work hard.” nally to be profitable on everything.” said. “But it’s not surprising, coming from won’t be the new norm. Look for used car sales to increase, Vi- Viviano, who estimated that 90 percent to doing 15 to 20 a day, that you’d drop to one or “The buys on new vehi- viano said. 95 percent of his monthly business had been three or four.” cles right now are unbe- “When you could get leases at ridiculous- leasing, said there’s a re-education element Viviano said he’s confident that a healthy lievable — why lease ly low prices, who would buy a used car? But involved in shifting back to buying — simi- package of Chrysler incentives will lure Cole when you can buy for the now used car business is going to perk up,” lar to the introduction of leasing programs. lease customers into purchase agreements. same monthly payment?” he said. “But you he said. “When they came in with leasing, nobody “We’re still doing leasing,” Viviano said, can count on prices going up once we get Chrysler’s announcement came the week wanted to lease, then everybody started with lease financing through banks. better balance between market and capaci- before Viviano launched a new 14,000- thinking this is the way to go,” he said. But the low interest rates and lease incen- ty.” square-foot truck and fleet commercial cen- “We didn’t get into this overnight, and tives Chrysler Financial offered are absent Matt LaFontaine, general manager of ter, a three-year, $6 million investment. you don’t get out of it overnight.” from bank-financed leases. Dearborn-based LaFontaine Automotive Group, “It was a long half-hour drive from (a Nancy Kaffer: (313) 446-0412, “We took one car, ran a lease, and ran the said sales at the dealer’s Chrysler shops meeting where Viviano learned of the [email protected].

CAREER MOVES Broad range of candidates advance to GENERAL

Fundraising Director general election for Macomb charter panel

BY CHAD HALCOM ity and investment and you don’t know until the bal- Working with the President and CEO, the Fundraising Director is responsible for building CRAIN’S DETROIT BUSINESS lot box what effect or return there is on that,” Davis revenue with minimal supervision. It is expected that the individual that assumes this position will increase revenue, develop new sources of income and maintain current revenue streams said. “In private sector activity, you sometimes get at through successful fundraising. The Director will coordinate fundraising efforts with Round- Macomb County politicos may have to collaborate on least incremental results from your work. But I’m table staff and volunteer staff. The Director will work closely with program directors to un- a charter commission to create an executive form of pleased at (these) results.” derstand the Roundtable’s mission and programs and develop strategies for funding such programs. The Director will also assist the staff in other fundraising and public relations government, since no single group managed to domi- Out of contention following Tuesday’s primary are activities as needed. Position requirements include: Degree from an accredited university or nate primary elections last week. the charter committee’s two co-chairs — Grace Shore, the equivalent of 3-5 years of work experience related to fundraising, strong and proven abil- Candidates with support from business and labor ity to relate with individuals and institutions, excellent verbal and written communications CEO-COO of the Macomb County Chamber, and skills, and a passion for the Michigan Roundtable’s Mission and humanitarian causes. leaders in the ballot action committee Charter Equals Ronald Robinson, owner of Ronald E. Robinson CPA Inc. County Executive met with mixed results among the field in Clinton Township. Send Resume to: of 151 candidates seeking the 26 commission seats. Shore was among seven candidates eliminated in Dis- So did a group of local attorneys, some officials and Executive Coordinator trict 15 for Macomb and Ray townships. Robinson fin- Michigan Roundtable for Diversity and Inclusion members of a few prominent political families in the ished second to Clinton Township Fire Marshal Robert 525 New Center One same race. Smith Jr., a Democrat who will face Republican winner 3031 W. Grand Boulevard “I definitely think we need a commission that in- and Clinton Township Supervisor Robert Cannon. Detroit, MI 48202 volves every one of those groups in the process — and Other candidates with charter committee support fax: (313) 870-1501 based on the election results it seems maybe we’ll have who succeeded in the primaries included: Vincent Vi- that,” said attorney Carrie Fuca of Carrie Fuca P.L.L.C. viano, community development officer for Warren and Democratic primary winner of District 18 in Harri- Bank, who edged out five other Republicans in Shelby ADMINISTRATIVE SALES son Township. “We’ve got a little bit of everybody ad- Township’s District 12; and Donna Cangemi, presi- vancing to (the general election), and that’s great.” dent of the American Federation of State, County and Mu- GROUP HEALTH INSURANCE SALESPERSON Fuca, a former chairwoman of the Macomb County Portfolio Administrator Growing Troy agency seeks group health producer, nicipal Employees Local 411 and Democratic winner for preferably with an existing book of business. Exciting Bar Association Young Lawyers Section, advances with Sterling Heights’ District 8. opportunity for a self-motivated individual. Respond Ambassador Capital Management is an confidentially with resume to: [email protected]. 1,261 votes to face Adam Wit, the Republican primary Lawyers who advanced to the general election in- institutional investment advisory firm winner and Harrison Township deputy supervisor, located in Downtown Detroit and dedicated cluded Fuca, attorney and former county commis- exclusively to the fixed income investment POSITIONS SOUGHT who enjoyed some backing from the charter group sioner Tom Rombach, former bar association presi- management business. We are seeking members. an experienced Full-Time Portfolio Admin- dent Gary Anthony, Jacob Femminineo Jr. of istrator to participate as a member of our Sales, Executive Management, Turnout was low in the primaries. Of the 151 candi- Femminineo Attorneys P.L.L.C. and defense attorney support team to service our clients and Business Development, Marketing dates vying for commission seats, not one garnered James Maceroni. Fuca and Rombach both said the op- business associates. The ideal candidate I have 21 years experience in above areas. more than 2,500 votes and just 18 portunity to craft a legal document like a charter was must be organized, detail-oriented, and Family man looking to secure long-term, stable able to work in a small office environment. position. Reliable, professional, team oriented, claimed more than 1,000. an obvious lure for many attorneys. We have fewer than 15 employees and the right individual will get a broad range of ex- proven track record. Contact: [email protected] The election winnowed the field of Lawyers eliminated last week included George perience and be a part of a vibrant and candidates to one Republican and Constance, former Warren city attorney and current growing company. A positive, responsible one Democratic nominee for every attitude is essential. Proficiency with the human resources director; J. Russell LaBarge Jr., Microsoft Office applications is required Call Us For Personalized district. Winners face off in the Nov. partner, Johnson Rosati LaBarge Aseltyne & Field P.C. in and experience with Advent Axys software 4 general election. St. Clair Shores; and retired Warren district Judge is a plus for this position. A Bachelor’s Service: (313) 446-6068 Degree is preferred, but not required. The commission, when elected, Robert Chrzanowski. CLOSING TIMES: Monday 3 p.m., will craft a charter to define the Alisha Baker, a customer service director for This position requires strong written and one week prior to publication date. verbal communication skills, the ability to Please call us for holiday closing times. structure and duties of the govern- DuPont Automotive who had support from charter com- deal with multiple and diverse tasks, some FAX: (313) 446-1757 ment, including creating a county mittee members, lost to Femminineo in District 17 by general office and basic research back- executive, after voters passed the ini- Davis ground. E-MAIL: [email protected] 897-848 votes, in one of the closer races. Baker said she INTERNET: www.crainsdetroit.com/classifieds tiative by ballot action committee in May. now expects Femminineo as the Democrat to easily Compensation is commensurate Melanie Davis, president of the Macomb County Cham- with experience Confidential Reply Boxes Available defeat Republican winner Lyle Koch. ber, edged out three other Republicans for District 7 in Davis said the chamber is arranging interviews PAYMENT: All classified ads must be Please submit Cover Letter and Resume Sterling Heights with 482 votes. She will face off against with all the primary winners and will release a list of to: [email protected] prepaid. Checks, money order or Crain’s credit approval accepted. Democratic winner Elisabeth Sierawski, who also de- contenders the organization recommends or deems Credit cards accepted. No phone calls please. feated three other contenders with 1,125 votes. qualified for the commission before the Nov. 4 elec- See Crainsdetroit.com/Classifieds “Running for a political office is unlike anything tion. for more classified advertisements I’ve ever done, in that you are putting in a lot of activ- Chad Halcom: (313) 446-6796, [email protected] DETROIT BUSINESS MAIN 08-11-08 A 29 CDB 8/8/2008 5:55 PM Page 1

August 11, 2008 CRAIN’S DETROIT BUSINESS Page 29 Fund: Where’s the cash? A bad week ■ From Page 1 Ideal Security As of Friday, though, Bates had- Davis’ bank and two other minor- For Hospitals n’t got his money back. “I have not. ity-owned banks, City National Bank for the It did not happen,” he told Crain’s. of New Jersey and Liberty Bank & Bates said when he heard he had Trust of New Orleans, own West donated to the mayor’s fund in- Bloomfield Township-based Minority stead of to a children’s organiza- Alliance Capital L.L.C., which in May mayor tion, “I felt like an idiot. How was awarded a $4.5 million contract would you feel?” He declined to by the city of Detroit to provide soft- Detroit Mayor Kwame Kil- elaborate about how the donation ware and services for a new cash- patrick’s legal troubles contin- came about but said that the solici- management system. ued to mount Friday when he tation to him was not made by any- Original membership committee was charged with two counts of one on the mayor’s staff. members whose names don’t show assaulting or “I live in Detroit and I want good up on the IRS form among the 31 obstructing a things to happen for the city, but who made donations are: police officer he’s not one of them,” said Bates, re- The Rev. Horace Sheffield III, in the fur- Worried About Unauthorized ferring to the mayor. “I don’t think pastor of New Galilee Baptist therance of People In Unauthorized Places? he’s done anything for the city.” Church in Detroit; Reginald Turn- his duties on As Kilpatrick’s bills accelerate — er, past president of the National Bar Friday. Audit Records now that he has two felony assault Association and State Bar of Michigan; The charges to fight in addition to his David Baker Lewis of the promi- charges Lost Key Deactivation Textgate perjury, obstruction of jus- nent Detroit law firm of Lewis & came in con- Kilpatrick tice and misconduct in office Mundy P.C., which by the time the nection with User Schedules charges — the money coming into defense fund was formed had al- a confrontation between the Access Control his legal defense fund has slowed to ready run up a bill of more than mayor and Wayne County On Cabinets a trickle. $300,000 defending the mayor; S. Sheriff’s Detective Brian White The fund, announced on March Martin Taylor, retired executive last month, who was attempt- 27, had raised $185,600 by the end of vice president of DTE Energy Co.; ing to serve a subpoena on Kil- June, according to the form filed Donald Watkins, a banker based in patrick’s friend Bobby Ferguson. with the IRS. But it raised only $800 Alabama; Willie Brown, the former Each count is punishable by up Call us today for a full security assessment. in June and didn’t collect a dime in mayor of San Francisco; Marianne to two years in prison or a fine the last three weeks of the month. Spraggins, president of Buy Hold of $2,000, the Associated Press In April, the fund raised America, a New York consulting reported. $101,300. The fund reported raising company; Michael Eric Dyson, a ra- Kilpatrick was arraigned via $83,500 in May, although that total dio talk show host and professor at closed-circuit video Friday af- is in dispute. Georgetown University; and Danny ternoon from the Wayne County July figures aren’t available. Bakewell, a California real estate Jail. Bond was set at $25,000, and By the end of June, the fund list- developer. he must pay 10 percent. ed payments to attorneys of When the fund was formed, De- The day before, Kilpatrick $165,000 — $10,000 to the James C. troit native and TV personality was sent to jail by 36th District Thomas Client Trust of Detroit, Judge Greg Mathis was briefly list- (&("*(*"%)%%lll#gZY[dgYadX`#Xdb Court Judge Ronald Giles, who $75,000 to James C. Thomas P.C. of ed as a committee member, but his said Kilpatrick had violated Detroit and $80,000 to the Cochran name was taken off the Web site terms of his bond concerning Law Firm of Farmington Hills. when he denied participation and the text-messaging scandal Not listed were any payments to called for Kilpatrick’s resignation. the mayor’s highest-profile and re- Turner is also no longer a mem- July 23 when he traveled to portedly highest-paid attorney, ber of the committee. Windsor without getting the Chicago-based Dan Webb, who sup- The biggest donations were court’s permission. we bet... posedly bills $700 to $750 an hour. $50,000 from Clinton Township- After spending the night in If the mayor wants to know who based Medici Homes Inc., on April jail, the terms of Kilpatrick’s to blame for his fund’s shortfall, he 29; the nondisputed $25,000 from bond were changed by Wayne you are can look to its membership com- Davis; $10,000 each from Brian Jef- County Circuit Court Judge mittee. Of the original 11 members fries, president and CEO of De- Thomas Jackson, who said Giles spending more of the committee, only two have troit-based Ambassador Capital Man- had overstepped his bounds than 4 cents made contributions. agement, PricewaterhouseCoopers when he sent the mayor to jail Gregory Eaton, a co-owner of partner Darrell Burks of Bloom- without considering other op- per color copy the Metro Cars passenger service field Hills and the Waste Manage- tions. Jackson said the mayor or print. and a lobbyist with the Lansing ment Service Center in Houston. had to post a $50,000 cash bond, firm of Karoub & Associates who is Conspicuous by their absence was banned from travel outside listed as the fund’s custodian of were donations from prominent the state and had to wear an records, donated $5,000 on May 14, leaders of the local business com- electronic tether. Kilpatrick call 800.799.5377 and Donald Davis, chairman of De- munity who have been past sup- was released from jail at about WIN a $25 GAS CARD troit-based First Independence Na- porters of the mayor, including 2 p.m. tional Bank, is listed as having Jim Nicholson, president and CEO Also: for the first 25 who can made contributions of $25,000 on of Detroit-based PVS Chemicals Inc.; Ⅲ Gov. Jennifer Granholm says beat that bet! April 4 and $25,000 on May 22. Penske Corp. Chairman Roger she would preside over the ten- But Davis told the Detroit Free Penske and Peter Karmanos Jr., tatively scheduled Sept. 3 hear- Press in July that he didn’t make chairman and CEO of Detroit- ing on the request to remove the second contribution and had based Compuware Corp. Kilpatrick from office if such a resigned from the membership In March, following the forma- hearing is deemed necessary, plus, committee because fundraising tion of the defense fund, Jason the Associated Press reported. was too difficult. Vines, a senior vice president at Granholm said the hearing for every HP Edgeline Thursday, Davis and his partner Compuware, told Crain’s that he’d would be in the Detroit area. Technology purchase in Queen Lillian L.L.C., Chris Jack- talked to his boss, who was on vaca- Ⅲ Detroit City Council on Fri- we will give $500 back son, sued the city of Detroit after tion in the Bahamas, and “Peter did day unanimously approved to autism, a cause we officials decided to sell a section of not give any money to the mayor’s rules to be followed during up- Tolan Park to the Detroit Medical defense fund, and Compuware did- coming hearings designed to are dedicated to. Center instead of to their develop- n’t give any money. But if we would force Kilpatrick from office, the ment company. have been asked, we would have.” Associated Press reported. The a radical change in printing The city’s Planning and Devel- On May 16, during a Com- rules include allowing him le- HP Edgeline Technology opment department had said re- puware celebration in downtown gal representation and cross- cently that it had brokered a deal Detroit, Karmanos told the Free examination of witnesses. Just when you think HP imaging to have DMC and Queen Lillian Press that Kilpatrick “certainly The forfeiture hearings begin and printing can't get any better, it share the land for their projects. should not resign because he’s the Aug. 18. The council accuses does... in just about every way But Davis and Jackson say there best we have.” Kilpatrick of violating the city you can think of. was no deal. Sheffield, Davis and Lewis did charter by not revealing a con- The DMC wants the land for a not return calls Friday. fidentiality agreement tied to a parking lot next to its proposed Tom Henderson: (313) 446-0337, council-approved $8.4 million CORPORATE PRINTER CARE | simplified Children’s Hospital Pediatric Center. [email protected] whistle-blowers’ settlement. printerrepair.com | 800.799.5377 DETROIT BUSINESS MAIN 08-11-08 A 30,31 CDB 8/8/2008 5:58 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS August 11, 2008 Reader comments on Kwame range from anger to sadness Mayor Kwame Kilpatrick’s cas- things for the city. ... He should ac- cading legal troubles continue to knowledge the embarrassment baffle and anger metro Detroit he’s causing the city, realize his businesspeople, many of whom are situation is hopeless, and exit with calling for his resignation. as little fanfare and as much grace Others are mostly saddened. as he can muster.” “It is a tragic, unfolding story Timothy Mistry, that we couldn’t write if we were second vice president-wealth man- writing fiction,” said N. Charles agement, The Mistry Group, Anderson, president of the Detroit Smith Barney-Citigroup Urban League and chairman of Global Markets Health Alliance Plan, a 546,000-member health plan owned by Henry “I do not believe that the Kil- Ford Health System. “At some point patrick story will hurt business in we will have to see what decision Detroit unless he is let go without he makes to bring relief to him and any consequences. If the business the community.” world sees that our courts will not Anderson said he won’t advo- be influenced by the irresponsibil- cate for a resignation, saying ity of the mayor … we will be able that’s a conclusion Kilpatrick has to help Detroit grow and prosper to to come to on his own. its full potential.” “I think he is thinking about it. Connie Carr, account executive, This morning in my staff meeting, Red Level Networks, Novi we chatted about it for 10 minutes. Everybody is shaking their head.” “It is my contention that Kwame The issue also is distracting in Kilpatrick has done enormous Lansing. harm. ... Detroit’s resurgence has Sarah Hubbard, vice president been put back quite a few steps by of government relations for the De- all of the negative publicity which troit Regional Chamber, said if a reso- has made Detroit a target for slan- lution urging the governor to re- der, teasing, and all-out verbal move the mayor gets attention, that abuse.” could “consume a lot of energy from Melanie Markowicz, the Legislature that should be di- marketing assistant, Redico, rected at improving Michigan.” Southfield One such measure, House Reso- lution 362, was introduced in May “Kilpatrick needs to step down by Rep. David Law, R-Commerce and prevent any additional damage Township. to the city of Detroit and the great Another, House Bill 5923, intro- state of Michigan. I think these le- duced in March by Rep. Brian Cal- gal concerns are definitely hurting ley, R-Portland, would allow the both current and future business in city to sue Kilpatrick to recover Detroit and Michigan.” the $8.4 million settlement in the Craig Ireland, executive director, whistle-blower trial involving for- ACS Healthcare Solutions mer police officers if he is convict- ed of a felony and it’s determined “The charges will greatly affect the felony led to the financial loss. the image of an already troubled Readers who responsed to a city. His emperor attitude has set Crain’s e-mail query on Friday this city back years. I appreciate were mostly in the “resign now” the hardworking people from the camp. The mayor did have a hand- city and they deserve better.” ful of supporters, and there was this Craig Minolette, Re/Max from an anonymous reader: in the Hills, Bloomfield Hills “If Kwame Kilpatrick was GM’s CEO, he would be getting a multi- “Business leaders who were ten- million-dollar bonus.” uous about investing in the city Following are some representa- will now pause and wait to see tive comments: what happens. And while they wait, other opportunities will “There is such hope and arise and divert their attention promise for the city of Detroit and and money away from Detroit and the state of Michigan, but … no its problems. … The mayor needs other city would tolerate the may- to resign from office, clean up the or to still be employed after having positive face that Detroit is trying multiple criminal charges brought to present to the investment com- against him. … How can we expect munity and let us start to rebuild new businesses to put faith in a investor confidence in the city.” city run by a felon?” Kenneth Meskin, CPA, Jody Jenkins, account manager, Bloomfield Hills Avis Budget Group

“This has dominated the news “It’s time for Kwame to text in the past couple of days and his resignation. For the good of the brought great embarrassment and city, for the health of his family, further negativity to our state. Lit- for crying out loud, just quit!” tle, if any, leadership is coming Curt MacRae, president, from the governor. … Just when Midwest Leasing Group Inc., Livonia we thought we had seen the bottom, the bottom moves.” “I don’t believe his case would Phill Orth, Lansing hurt business in the city if the media wasn’t sensationalizing every “It’s a sad day for Detroit. The little tidbit. Everyone deserves mayor should take the high road their day in court, but the media and do what’s right, which is step and suburbia have already con- down and allow the city to move victed him.” forward with some dignity intact. Franklin Walker Jr., He’s made some poor decisions, engraving director, though he’s also done some good Motor City Creative Design L.L.C. DETROIT BUSINESS MAIN 08-11-08 A 30,31 CDB 8/8/2008 5:47 PM Page 2

August 11, 2008 CRAIN’S DETROIT BUSINESS Page 31 McElya: Pushes for clinic ■ From Page 1 Salvation Army. “Those were tough times in the JAMES MCELYA, 61 ’40s,” he said. “But the good news is there were resources around — Title: Chairman, Cooper-Standard Holdings Inc. and Cooper-Standard people willing to give food, clothes Automotive and their time. … That’s what got Inc., Novi, me through.” which had Something clicked last fall when sales of $2.8 McElya, reading an in-flight maga- billion last zine, came across an article that year. mentioned Super All Year Detroit, Background: the charity started by Detroit Free CEO of both Press columnist Mitch Albom in Cooper- 2006 during Super Bowl XL to help Standard Detroit’s homeless. companies from 2004 McElya called Albom. The Novi- McElya through June based supplier and its employees this year; former vice president of pick a charity to support each Cooper Tire & Rubber Co.; president year, and this year, McElya said, of Cooper Tire & Rubber Co. and they wanted it to be SAY Detroit. Handy & Harman. McElya knows “what’s it like to Education: Attended West Chester be put aside in society. … I think, (Pa.) University particularly with the kids, this is like a straight line of him looking er initiatives. back to his childhood,” Albom According to its IRS Form 990, said. SAY Detroit collected $287,697 in In January 2007, there were ap- 2006 and made grants of $130,100 to proximately 18,000 homeless in De- nonprofits that include Capuchin troit, Highland Park and Ham- Soup Kitchen, Cass Community Social tramck, according to the Homeless Services, Neighborhood Service Organi- Action Network of Detroit. But the or- zation, Michigan Veteran Foundation ganization’s biennial count did not and New Day Multi Community Center. include a breakout of how many SAY Detroit and Detroit Rescue were women or children. Mission plan to hire four nurses By offering immunizations, the and contract with a pediatrician, an new clinic will be a first step to- obstetrics-gynecology physician ward getting homeless kids into and an internist to start, Audi said. school, said Chad Audi, CEO of De- That should give the clinic the ca- troit Rescue Mission Ministries and a pacity to see about 30 people daily. member of SAY Detroit’s board. The groups are also in talks with And need for other preventive care the Wayne State University Medical and medical treatment for those School, William Beaumont Hospital children and their mothers is high. and Oakland University — which are But the center has a long-term in the process of developing a new objective, too, Audi said. medical school — about providing “We’re hoping through this interns or volunteer physicians clinic to … find a permanent solu- and physician assistants. They tion to their problems,” he said. also plan to approach the Detroit The clinic “will be like a triage Medical Center to establish a refer- area for us to find out why they are ral process for patients who need homeless and to try to help get surgery or trauma care, Audi said. them back on their feet.” It’s critical to have a medical Case managers will offer refer- home for children to make sure rals for addiction treatment, hous- they are developing properly and ing assistance, and job training to provide preventive care, includ- and placement. ing hearing and vision testing, im- Detroit Rescue Mission is offer- munizations and monitoring of ing space for the clinic on the first lead levels, said Patricia Soares, floor of a former St. John Health Sys- interim executive director of De- tem medical building in Highland troit Health Care for the Homeless, Park it purchased five years ago. which does business as Advantage The outpatient counseling pro- Health Centers. gram for people who have complet- Children with undetected high ed treatment is also in the build- levels of lead, for example, can de- ing, along with continuing edu- velop learning disabilities, Soares cation in areas such as computer said. But with detection, those con- programming and repair and Web ditions can be treated and abated. design, offered through Wayne Overall, homeless children are County Community College. Four sick more often, have more emo- physicians also lease space. tional problems and more likely to The nonprofits hope to open the repeat a grade than other kids. 24-hour clinic before the end of The organization provides care September and plan to include 12 through a clinic on West Grand beds nearby so people who are un- Boulevard and a mobile clinic that der care can rest for up to a week goes to church soup kitchens, drug and then be seen again by a doctor. treatment centers and Latino Family With $400,000 in hand, there is Services in Southwest Detroit. enough to open now, McElya said. McElya said he is asking several But opening the clinic and giving automakers for grants and plans to hope, then closing it for lack of on- go to foundations for help next. going funding, is “almost more cru- Unfortunately, not everyone el than not having it at all,” he said. gets it, he said. One tier-one auto- The clinic will need $1 million motive supplier McElya ap- for its first two years of operation, proached for help wrote a letter which will include a shuttle to asking if McElya realized how bring the homeless and the unin- poor the economy was. sured to the clinic, Audi said. “If it’s tough for us CEOs, imag- For his part, Albom makes pleas ine how it is for the homeless peo- for donations through his radio ple,” McElya said. show on WJR 760 AM. He also is rais- Sherri Begin: (313) 446-1694, sbe- ing money through a number of oth- [email protected] DETROIT BUSINESS MAIN 08-11-08 A 32 CDB 8/8/2008 4:57 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS August 11, 2008 Staffing: Some docs say 24-7 cardio staffing may not be needed ■ From Page 3 DMC officials have said its Cardio Team technicians at the hospital 24-7. technician, emergency physician or cardiol- One program can cut average response time SPEEDING UP CARE That’s apparently not quite true, but it is ogist),” Haines said. to between 45 and 60 minutes, depending on unusual. The NEJM study indicated that 14 The next step is to take an EKG, or heart the type of case, at DMC’s Harper University In a Nov. 30, 2006, study published in the of 365 hospitals surveyed have on-site cardi- test, on the patient, to help diagnose Hospital and Detroit Receiving Hospital. New England Journal of Medicine, which is ologists 24-7. The median door-to-balloon whether the problem is a heart attack and to cited often by cardiologists, six key “This is a significant investment in the strategies were found to reduce door-to- time of the 365 surveyed hospitals was 100 rule out other medical problems, he said. program that will deliver significant re- balloon time. They are: minutes. The 14 hospitals with on-site cardi- Haines said Beaumont’s door-to-EKG sults,” said Tonita Cheatham, Harper’s di- Ⅲ Having emergency medicine physicians ologists averaged 92 minutes, the study said. time is 6.5 minutes, door-to-activating acute rector of public relations and marketing. activate the cardiac catheterization Dr. David Haines, Beaumont’s chair of the myocardial infarction (heart attack) team is For optimal care, the American College of laboratory (saves 8.2 minutes). department of cardiovascular medicine, 14 minutes and door-to-activating the cath Cardiology and the American Heart Association Ⅲ Having a single call to a central page said he is concerned that DMC’s claim could lab is 40 minutes, Haines said. recommend that 75 percent of emergency operator activate the cath lab (saves 13.8 confuse patients into thinking having a car- “We never have an acute patient waiting for heart attack patients should have what is minutes). diologist on site saves significant time and a cardiologist to get to the lab,” Haines said. called a percutaneous coronary interven- Ⅲ Having the emergency department activate offers optimal care. Most top hospitals strive to have emer- tion, or PCI, within 90 minutes of arrival at the cath lab while the patient is on the way to “It is a good marketing ploy,” Haines said. gency medical technicians take EKGs and the hospital. Studies indicate most hospi- the hospital (saves 15.4 minutes). “If you have a problem in getting cardiolo- forward the information electronically to tals’ average time is 100 to 150 minutes. Ⅲ Expecting staff to arrive in the cath lab gists in promptly for cardiac cases, you need physicians for evaluations, said Dr. Tom Commenting on DMC’s claim that it can within 20 minutes after being paged to have people in-house. Maybe they live in LaLonde, chief of cardiology at St. John Hos- be ready to cut into an artery in less than 60 compared with more than 30 minutes (saves the (suburbs) and can’t get in within 20 min- pital & Medical Center in Detroit. minutes, Kugelmass said, “I am not sure 19.3 minutes). utes of a phone call.” LaLonde said St. John’s average door-to- they can do that.” Ⅲ Having an attending cardiologist always on Beaumont’s on-call policy is having a car- balloon time is less than 90 minutes. But having a 24-7 cardiologist may allow site (saves 14.6 minutes). diologist at the hospital within 20 minutes, “A key to this is our use of a communica- DMC to improve door-to-balloon times, sev- Ⅲ Having staff in the emergency department Haines said. The hospital averages 74 min- tion system that makes it possible for para- eral cardiologists said. and cath lab use real-time data (saves 8.6 utes in door-to-balloon time, he said. medics to send real-time medical informa- In 2006, Detroit Receiving reported that 61 minutes). “We have been under 90 minutes for three tion to the hospital emergency department,” percent of 23 Medicare patients had begun — Jay Greene years,” Haines said. LaLonde said. treatment for heart attack within 90 min- Beaumont averages about 20 emergency The EKG data can help doctors determine utes; 56 percent of nine similar cases began But generally less than 20 percent of an- heart attacks each month in which the car- if a patient is having a heart attack, treatment within 90 minutes at Harper, ac- gioplasty procedures are considered emer- diac cath lab is activated, Haines said. “One- LaLonde said. cording to the federal Centers for Medicare gencies. For example, 10 percent to 20 per- third of those cases we are in that 45- to 60- St. John averages about 1,800 annual an- and Medicaid Services. The numbers were cent of Henry Ford’s heart attack cases minute window,” he said. The hospital gioplasties, but only about 125, or 7 percent, based on a small number of cases and were require emergency angioplasty with a reac- performs about 250 angioplasties each are considered emergencies in which the 90- not considered statistically significant. tion time of less than 90 minutes, Kugelmass month. minute time is crucial, he said. Beaumont reported to the centers that 82 said. These emergency heart attack cases Beaumont also closely tracks the time it Cardiologists at the University of Michigan percent of its 71 Medicare patients in 2006 are called acute myocardial infarction with takes patients who enter the hospital until Hospital and Health Centers in Ann Arbor are re- were under the 90-minute mark, while St. ST-segment elevation. they arrive in the cardiac catheterization quired to be at the hospital within 30 minutes, John Hospital reported 69 percent of its 64 In a press statement, DMC said it is the laboratory. said Kara Gavin, a media relations specialist. Medicare patients were. Those numbers were only hospital in the nation with an on-site “The first component is recognition by Jay Greene: (313) 446-0325, considered statistically significant, CMS said. cardiac team of cardiologists, nurses and the initial caregiver (emergency medical [email protected]

Storms: Earnings hurt Lower electricity sales cited PSC investigates ■ From Page 1 in energy-reform debate to $16 million impact that spring largest customer impact in Detroit storm response storms usually have in the second Edison’s history, cutting power to With action potentially looming on Michigan energy reforms, a coalition calling for more legislative re- quarter. For the three months end- more than 400,000 of Edison’s 2.2 The Michigan Public Service Commission is inves- view is pointing to Michigan electricity companies’ ed June 30, DTE posted earnings of million Southeast Michigan cus- tigating the utilities’ response to the June second-quarter sales declines as another indication $28 million, or 17 cents a share. tomers. storms. No early findings or comments were At CMS Energy Corp., storm costs The storms brought down about why neither legislation nor new plants should be rushed. available last week, but in June PSC Chairman had a $4.5 million impact on net in- 5,000 power lines in Edison’s terri- Orjiakor Isiogu said that “reports of telecommu- come. CMS’ second-quarter earn- tory and prompted 14,000 restora- DTE Energy Co. and CMS Energy Corp. reported electricity sales down about 4 percent from the same nications breakdowns and prolonged power out- ings were $46 million, or 19 cents a tion jobs, many stemming from ages raise serious concerns that must be fully in- share. trees that blew over and downed quarter a year ago, reflecting the slower economy, the effects of the vestigated.” Both companies say they build power lines. American Axle and Manufacturing The PSC’s staff is looking at a variety of issues, storm costs into their budgets and “We ended up having to rebuild Holdings Inc. strike, and other fac- including the storms’ effect on the utilities’ dis- are looking internally to absorb neighborhoods,” Dow said. tors in addition to weather. tribution systems, the utilities’ response and the expense, through cost-cutting Edison installed nearly 400 new Dave Waymire, spokesman for whether any changes are needed to reduce future or operational efficiencies. Con- poles, more than 250 new transform- the Customer Choice Coalition, a col- power outages of similar magnitude. sumers Energy also has insurance ers and more than 70 miles of power lection of business groups, con- Commission staff will file a report by Aug. 22, coverage for catastrophic storms lines. Labor costs, including about sumer interests and alternative- and the utilities have until Sept. 22 to file re- that enables it to submit claims for 600 line workers who came from electricity suppliers, said that sponses. costs above $10 million, said Jeff other utilities in Michigan, Ohio, In- beyond the second-quarter re- One issue raised by Detroit Edison regarding Holyfield, CMS director of news diana, Illinois and Missouri, repre- Waymire sults, “growth rates have not been the June (and other) storms is the emerald ash and information. sented the majority of the utility’s extremely high in Michigan.” He said the state over- borer. Dow said Edison would like to join with Still, large storms pose a strain. storm expense, Dow said. all, through the most recent data year of 2006, “is us- the PSC to increase public awareness of utility Consumers Energy annually bud- At Consumers Energy, about ing less electricity than we were in 2000, when our 360,000 of Consumers’ 1.8 million problems caused by the beetle. gets about $20 million for storm-re- needs were being met adequately. electricity customers were affect- Dow said ash trees weakened and killed by the lated restoration costs and reached “There doesn’t seem to be a huge increase in de- ed by the June storms. Damage borer are becoming a serious problem. Ash trees that level with the June storms. The mand going on today, and it’s important for the Leg- was widespread throughout Con- 50 feet high may be outside the 10-foot range al- company faces an additional $12 islature to stop, look and analyze these bills and lis- sumers’ territory and included lowed for line clearance, but they can still bring million to $13 million tab from early ten to what people other than utilities are saying.” about 6,500 downed wires. Factors down lines and cause outages, he said. July, when 240,000 Consumers cus- But energy company officials said analysis and were direct lightning strikes to “They’re out of range for us to clear, and we tomers lost power when a major projections remain valid. Lorie Kessler, DTE direc- power lines, equipment and trees need homeowners to clear them,” Dow said. storm hit the Ludington area and tor of external relations, said a combination of fac- and high winds that damaged “They can improve their service and their neigh- brought nearly a foot of rain in 12 tors propels the need to build new sources of power poles, pole cross arms and wires bors’ service to have these dead trees removed, hours, washing out roads and caus- generation, including the replacement of aging gen- and sent tree limbs onto wires. before they become a problem.” ing heavy damage. erating plants and expected growth in demand. Restoration efforts used 181 mul- Judy Palnau, media and public information spe- Detroit Edison budgets for Jeff Holyfield, CMS director of news and informa- cialist at the PSC, said both Edison and Consumers around $76 million annually in tiperson Consumers Energy repair tion, said “that there are extremely long lead times have in the past brought concerns about the ash storm costs and has already spent crews, 62 Consumers teams to to build new power plants, and the issue is not 2008 $62 million through 2008’s first six identify the extent of damage to or 2009 but the issue is whether Michigan will have tree problem to the commission’s attention. months, which included a large ice circuits, 167 crews of outside con- the power it needs in 2015 and beyond.” She said commission staff last week was not storm in January, said Vince Dow, tractors and 85 crews from out-of- He said quarterly results are not a sound basis for aware of any Edison request for an educational DTE vice president of distribution state utilities, Holyfield said. deciding long-term energy policy. Kessler said that program and said the commission does not yet operations. Amy Lane: (517) 371-5355, also applies to projecting long-term demand. have an opinion on the matter. The June storms had the fifth- [email protected] — Amy Lane — Amy Lane DETROIT BUSINESS MAIN 08-11-08 A 33 CDB 8/8/2008 4:29 PM Page 1

August 11, 2008 CRAIN’S DETROIT BUSINESS Page 33 Suppliers: Rising costs, market spur cuts, lawsuits www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- year ago. Truck sales decreased 19.3 percent to “We buy steel scrap … and we get recovery In other litigation, Royal Oak-based FormTech 0460 or [email protected] 3.92 million vehicles, down 19.3 percent from properly from our customers,” Grimm said. Industries L.L.C. was able to avoid a court injunc- MANAGING EDITOR Andy Chapelle, (313) 446- the same period a year ago. The company also has a stronger balance sheet, tion to compel shipments of its steel forgings to 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette “We have to right-size our North American he said, with debt levels much below the more Canadian supplier Linamar Corp. Smith, (313) 446-1622 or [email protected] business,” Peterson said. “Everything is in a than $100 million the company owed at its sec- FormTech CEO Michael Ryan and Crystal BUSINESS LIVES EDITOR Michelle Darwish, (313) 446-1621 or [email protected] tumble-down situation. We are just trying to ond filing in April 2007. Citation has agree- Roberts, Linamar corporate communications COPY DESK CHIEF Gary Piatek, (313) 446-0357 make sure we don’t end up like our peers — in ments with all its customers to recover at least manager, confirmed last week their companies or [email protected] GRAPHICS EDITOR Nancy Clark, (313) 446-1608 the red.” some of its increasing raw-material costs will soon enter a consent agreement at U.S. Dis- or [email protected] Novi-based Citation Corp. made a similar monthly, Grimm said. trict Court in Detroit in lieu of a hearing on COPY EDITOR Vic Doucette, (313) 446-0410 or [email protected] move Aug. 4 when it said it was shaking up its But other companies, typically tier-two and Linamar’s Aug. 1 request for an injunction to DATA EDITOR Anne Marks, (313) 446-0418 or North American operations. tier-three suppliers, don’t have such frequent compel shipments. [email protected] WEB GENERAL MANAGER Alan Baker, (313) 446- The supplier of forged and cast metal compo- pass-through agreements with customers. “Basically, these are just procedural steps. 0416 or [email protected] nents said it plans to cut production at its metal One example is a lawsuit filed July 30 by We’ve agreed to (resolve) one step in the WEB EDITOR Christine Lasek, (313) 446-0473, [email protected] foundry in Lufkin, Texas, and reduce the work- Troy-based Delphi Corp. against Wisconsin- process,” Ryan said. “Linamar is a very good WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) force there by 128 employees. based Kickhaefer Manufacturing Co. L.L.C., a mak- customer to us, and this is all very complicated, 446-0403, [email protected] RESEARCH ASSISTANT Joanne Scharich, (313) Those cuts, expected to be completed by Sep- er of metal stampings used in Delphi-made as I’m sure you can appreciate.” 446-0419 tember, closely follow the closure of a brake- wiring harnesses. The FormTech litigation, as well as the Del- EDITORIAL SUPPORT Anita Duncan, (313) and suspension-component Delphi said Kickhaefer threatened to stop phi and Johnson Controls cases, are directly 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- plant in Butler, Ind., complet- shipping parts to Delphi factories if it was not linked to steel prices, which in some cases have 1687 TIP LINE (313) 446-6766 ed in July, where Citation given a 20 percent price increase to recover nearly doubled since January. REPORTERS had employed 144 workers. steel costs. Kickhaefer told Delphi its steel costs James Mallak, former CFO of Novi-based Tow- Robert Ankeny: Covers the city of Detroit, Wayne Citation CEO Doug Grimm grew as much as 81 percent since January, and er Automotive Inc. and now a managing director at County government, and law. (313) 446-0404 or [email protected]. said the cutbacks were in re- fuel surcharges were up 800 percent since 2004, Alvarez & Marsal L.L.C. in Detroit, said the just-in- Ryan Beene: Covers auto suppliers, steel. (313) sponse to sharp declines in according to a note attached to Delphi’s lawsuit time delivery model is essential to spare suppli- 446-0315 or [email protected] Sherri Begin: Covers nonprofits and services. North American truck sales written by Jeff Hubert, Kickhaefer executive ers a loss from leftover inventories when produc- (313) 446-1694 or [email protected] and production, which, cou- vice president of sales and marketing. tion stops or a product’s specifications change. Daniel Duggan: Covers real estate and hospitality. pled with sharp cost increas- Because Kickhaefer is Delphi’s single source He noted that several of his clients also are (313) 446-0414 or [email protected] Jay Greene: Covers health care, insurance and the Grimm es in raw materials, have cre- for the wiring harness stampings, and Delphi voicing concerns about materials costs. environment. (313) 446-0325 or ated problems for the operates on a just-in-time basis, an interrup- But he contends the benefits of the just-in- [email protected]. Chad Halcom: Covers education, non-automotive company. tion would force Delphi to shut down its wire time system to the industry as a whole far out- manufacturing, defense contracting and Oakland Citation has filed for Chapter 11 bankruptcy harness operations immediately. weigh any risks, including the recent litigation. and Macomb counties. (313) 446-6796 or [email protected]. protection twice since 2004. Delphi countered that it was forced to give “It (just-in-time) gives the material suppliers Tom Henderson: Covers banking, finance, Grimm says the first reorganization was Kickhaefer the increase, calling the demands a point of leverage when they have a dispute on technology and biotechnology. (313) 446-0337 or [email protected]. filed because the company did not have a “unilateral and baseless.” pricing, and it gives labor a leverage when Nancy Kaffer: Covers small business and retail. means to recover steel cost increases from its Delphi is asking a U.S. District Court judge in there’s a contract dispute, because a work stop- (313) 446-0412 or [email protected]. Bill Shea: Covers media, advertising and customers. The company made another Chap- Detroit to make Kickhaefer continue to deliver page can cause shutdowns for other companies marketing, entertainment, the business of sports, ter 11 filing in April 2007 because its first reor- the parts at the original contract price, without very quickly,” he said. and transportation. (313) 446-1626 or [email protected]. ganization plan in 2005 did not account for the the 20 percent increase, and pay Delphi’s attor- “I would call that (the litigation) a risk, but Nathan Skid: Multimedia reporter. Also covers the 20 percent drop in North American pickup and ney fees. The case is ongoing. these are generally (incidental) compared to food industry. (313) 446-1654, [email protected]. SUV production and the increase in oil prices Crain’s sister publication Automotive News the overall benefit of the practice.” LANSING BUREAU Amy Lane: Covers business issues at the Capitol, seen in 2006. The company emerged from Chap- reported June 30 that Johnson Controls Inc. in Ryan Beene: (313) 446-0315, [email protected] telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or ter 11 shortly thereafter. Plymouth sued three of its suppliers in May for Chad Halcom: (313) 446-6796, 115 W. Allegan, Suite 220, Lansing 48933. Now, it’s a different story. seeking price hikes to recoup rising steel costs. [email protected] ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, Cathy Ross, Dale Smolinski Roncelli: The last name doesn’t always matter WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 ■ From Page 3 CLASSIFIED ACCOUNT EXECUTIVE Greg Evangelista, 313-446-1655 client is working with, going be- to earn the top position. The Southgate store was com- EVENTS MANAGER Nicole LaPointe MARKETING PROJECTS MANAGER Jennifer Dunn yond the bricks and mortar. “This business is so competitive pleted on time, in less than half the HISTORY TO THE WEST, MARKETING ARTIST Sylvia Kolaski “I’m thinking first of how to fi- and the complexity is so broad that time it would normally take. SALES SUPPORT Suzanne Janik, Andrea nance the projects and I understand FUTURE TO THE EAST your succession has to be the best Since then, Roncelli has built Beckham, YahNica Crawford CIRCULATION Candice Yopp, Manager. how to manage the financial side of person,” he said. “Not just the per- Wal-Mart The 600-square-foot office where eight stores and one other PRODUCTION MANAGER Wendy Kobylarz the business,” said Wickersham. Skip Roncelli started Roncelli son with the right last name. Sam’s Club for the company. PRODUCTION SUPERVISOR Larry Williams, However, it was a difficult deci- “It’s a testament to Gary’s lead- Similarly, the company’s rela- (313) 446-0301 Trenching Co. in 1966 still stands SUBSCRIPTIONS (313) 446-0450, sion for Roncelli, because the com- today as part of Patrico Transit Mix ership to make that decision. tionship with media mogul Sumner (888) 909-9111 pany has always been run by — which started Skip’s business That’s what you have to do.” Redstone made Roncelli a niche TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information someone in the family. In addition, — on Metropolitan Parkway in Rakolta said the Roncellis have player in the construction of cine- Center at [email protected]. he has two brothers, Scott and Sterling Heights. created a company that puts people mas. Redstone is majority owner CRAIN’S DETROIT BUSINESS IS PUBLISHED BY David, who work for the company Immediately to the east is the in positions to do quality work. and chairman of Dedham, Mass.- CRAIN COMMUNICATIONS INC. 1,100-square-foot building that CHAIRMAN Keith E. Crain as executive vice presidents. “They’ve got the right culture based National Amusements Inc., par- PRESIDENT Rance Crain Roncelli had been ruminating was Roncelli Inc.’s first home. there to get things done,” he said. ent company of Showcase Cinemas. SECRETARY Merrilee Crain about succession for five years, but In 1987, the company moved Like most companies, Roncelli Simple gestures are important, TREASURER Mary Kay Crain Executive Vice President/Operations it was during the company’s 40th again, roughly 100 feet to the Inc. has depended on long-term re- Roncelli said. When a GM executive William A. Morrow anniversary in 2006 that he started east. The building started as lationships. Roncelli has built the visits the offices, all employees who Group Vice President/Technology, 5,400 square feet, and a 20,000- Manufacturing, Circulation putting things in perspective. company on several key relation- own GM cars park them in front. Robert C. Adams square-foot addition was added Vice President/Production & Manufacturing “That was a time to pause and re- several years ago. ships made over the years. But even bigger gestures come Dave Kamis flect,” he said. “But this has been on “In 42 years, we’ve moved 100 One started with Sam Walton in from the wallet. Corporate Director/Circulation my mind for years. Every week, Gary Roncelli’s garage. Roncelli has become an investor Patrick Sheposh yards to the east,” said Chairman G.D. Crain Jr. Founder (1885-1973) every month, projects get more Gary Roncelli. “The phone rang, and it was in jobs the company has built. Mrs. G.D. Crain Jr. Chairman (1911-1996) complicated, responsibilities And to the east of the current Sam Walton on the other end,” he Gary Roncelli is a co-owner of Free- EDITORIAL & BUSINESS OFFICES: grow.” said. “It took me about a minute dom Hill Amphitheatre with restau- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) headquarters? Roncelli owns the 446-6000 It came down to the sophistica- land, just in case. and a half to figure out if it was re- rant owner Joe Vicari. Roncelli re- Cable address: TWX 248-221-5122 AUTNEW DET tion needed to run a company with ally him, since I have a lot of cently took a small equity position Subscriptions $59 one year, $98 two years. Out of — Daniel Duggan state, $79 one year, $138 for two years. Outside more than $200 million in revenue. earthy friends who might like to in the Pinnacle Race Course. U.S.A., add $48 per year to out-of-state rate for “Family-owned companies, tra- said John Rakolta Jr., CEO of De- pull a prank like that on me.” “We like to have a little skin in surface mail. Reprints: For inquiries call the reprints department ditionally, just don’t always make troit-based Walbridge Aldinger Co., Walton’s request: Build a the game,” Roncelli said. “And at: (800) 494-9051, Ext. 144 , or at it beyond the second, third genera- who inherited his position from his 175,000-square-foot Sam’s Club in 66 people who hire us like it because [email protected] CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is tion. We’re not gonna be one of father, who bought the company. days, rather than the five months we have skin in the game.” published weekly except for a double issue the those companies, we won’t allow it Rakolta took the post in 1970 normally needed. The future of the company could second week in August by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. to happen,” he said. when revenue was $22 million. In “It’s a simple choice when some- involve other Roncellis. Gary’s Periodicals postage paid at Detroit, MI and additional Wickersham will run day-to-day 2007, revenue hit $1.1 billion. one makes a request like that,” sons are ages 19, 17 and 16. mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation operations. Roncelli, still chairman, While Rakolta said he’d love to Roncelli said. “You can not do the “I’d ideally like to see my chil- Department, P.O. Box 07925, Detroit, MI 48207- will focus on the company’s real es- see his 27-year-old son, John III, job and never get any business dren come and run the company,” 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2008 by Crain tate holdings and his strong suit take over the post, it won’t be some- from that company again. You can he said. “But they’re too far down- Communications Inc. All rights reserved. Reproduction or use of editorial content in any over the years: business develop- thing handed down. John III works try to do the job and fail, then nev- stream to even think about it.” manner without permission is strictly prohibited. ment. for the company and will have the er get any business from the com- Daniel Duggan: (313) 446-0414, Succession issues are never easy, chance, like others in the company, pany again. Or you can succeed.” [email protected] DETROIT BUSINESS MAIN 08-11-08 A 34 CDB 8/8/2008 5:48 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS August 11, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG.2-8

vember will run for the seats held by Jacquelin Wash- Tiger Stadium 3 file to run ington and Paul Massaron. Floating technology exhibit group gets docks in Detroit more time for trustee Georgia-based Siemens Energy & Automation Inc.’s ossible preservation floating, two-story exhibit of part of Tiger Sta- and learning laboratory P dium got an exten- slots at OCC pulled into Detroit late last sion until March 1 on week on the second stop of Wednesday, as the Detroit hree candidates were Trustee Janice Simmons, its U.S. tour. Economic Development Corp. running for three who died while in office. Mounted on a Hannah Ma- forwarded to City Council a T seats on the oft-con- rine Corp. barge, the 10,000- proposed agreement with tentious Oakland Community Danialle Karmanos seeks square-foot Exiderdome, the Old Tiger Stadium Conser- College Board of Trustees as also dubbed the World of vancy, with possible help of Friday — though none so seat on the WSU board from the Automation, is designed to NATHAN SKID/CRAIN’S DETROIT BUSINESS far are the incumbents. show companies Siemens’ Ernie Har- Filing paperwork last Add “Republican” and possibly “university gover- latest technologies. well Foun- week to run for the two seats Siemens kicked off a se- dation. TOURNAMENT AN ECONOMIC BOOST offering complete six-year nor” to the list of Danialle Kar- manos’ latest public avoca- ries of events and seminars The Tiger Woods’ absence notwithstanding, the 90th PGA terms were Shirley Bryant, re- with a Thursday night auto- latest Championship last week at Oakland Hills Country Club in tired director of community tions. Karmanos, 35, chair- motive summit with the de- tentative Bloomfield Township played host to golf’s elite and throngs relations for Birmingham Com- sign leaders of two U.S. au- agree- of spectators. munity Schools, and Carlyle woman of the Museum of Con- temporary Art Detroit board tomakers about the ment The 90-year-old south course, nicknamed “The Monster” by Fielding Stewart, pastor of Ben Hogan after his 1951 victory there, saw 156 of the and founder of nonprofit challenges facing the auto- with the Hope United Methodist Church motive industry and the lat- conser- world’s best professional golfers compete for the $7.5 children’s organization Da- Harwell in Southfield. Currently est technologies for factory vancy million purse and the Wanamaker Trophy (and $1.35 million holding those seats are nialle Karmanos Work It Out, re- check) as the winner of the season’s final major tournament. cently launched a Web site, automation. calls for an escrow deposit Trustees Phillip Abraham and During the event, the of $150,000 by Aug. 8, anoth- It was the third PGA Championship for the private country Sandra Ritter. www.dkforwsu.com, to de- club and first since 1979. clare her interest in the Re- company presented Focus: er $119,000 by Sept. 8 and a “I went to the board’s July Hope with a $30,000 check to final payment of $100,000 by The tournament was expected to bring from $40 million to publican nomination to run $60 million into the region’s economy. More than $12 meeting and I was appalled,” fund scholarships for stu- Dec. 8. On Friday, City said Bryant, who also sits on for the board of governors of million was spent at the tournament on corporate hospitality, her alma mater, Wayne State dents pursuing math, sci- Council postponed a vote where chalets for the four-day event cost up to $500,000. the OCC Foundation board ence and engi- on the issue until Septem- of directors and For full Crain’s coverage of the event, see neering. On ber, the Associated Press www.crainsdetroit.com/pga. worked at Birm- Friday morn- reported. ingham schools for ing, Siemens the Associated Press re- the Detroit Science Center to 28 years. “I know hosted a Sci- OTHER NEWS ported. Its new hotel is fund the “Future Fuels how boards are ence Day at the scheduled to open early Gallery,” scheduled to open supposed to work, Exiderdome for Ⅲ Detroit has begun to next year. in 2010. and none of the fourth- and notify city employee unions Ⅲ The Michigan Economic Ⅲ Warren-based MSX In- others I’ve worked fifth-graders in that layoffs are planned af- Development Corp. is spend- ternational Inc. has acquired with are anything Focus: HOPE’s ter an agreement to raise ing $300,000 to promote the Japanese training oper- like this.” program. $65 million by selling the Michigan as a business des- ations of Carter and Carter The OCC board The Exider- city’s half of the Detroit- tination on WDIV-Channel 4 Group P.L.C. Terms were not was admonished dome, which Windsor Tunnel stalled, the during the Beijing 2008 disclosed earlier this year launched its Associated Press reported. Olympic Games. Ⅲ Passenger traffic for the for contentious tour in Chicago Ⅲ Bernard Kilpatrick, fa- Ⅲ Henry Ford Health Sys- first six months of 2008 set a behavior and “ac- last month, will ther of Detroit’s mayor, “Exiderdome” visits Detroit. tem in Detroit and Flint- record at Detroit Metropolitan tivity that goes be- remain docked won’t have to testify in a based McLaren Health Care Airport with 18,532,811 travel- yond the scope” of at the Talon/Omni complex lawsuit Wayne County has University, in November. both had their certificate of ers, up 3.1 percent from its duties by the Higher on the Detroit River brought against Jon Ruther- Candidates from the two need applications for a pro- 17,973,756 in 2007, according Learning Commission of the through Friday before mov- ford, a former homeless major political parties for ton-beam therapy center to the Wayne County Airport North Central Association of ing on to Boston, New York, shelter operator and presi- board of governors seats approved by the Michigan Authority. Colleges and Schools during Charlotte, Orlando, Los An- dent of Metro Emergency Ser- have to be nominated at Department of Community Ⅲ Richard Dugas Jr., presi- an accreditation review. geles, Denver and Houston. vices Inc., who was indicted state conventions — the Health. dent and CEO of Bloomfield Filing last week for the The exhibit is not open to in 2006 by a federal grand Ⅲ Hills- partial term now held by Michigan Republican Party the public, but engineers jury on conspiracy, tax eva- Tightening credit mar- based appointed trustee and CFO hosts its convention Aug. 23 and manufacturers can sion and fraud charges, The kets and auto industry tur- builder Dale Cunningham of the Oak- and the Michigan Democratic schedule visits or register Detroit News reported. Kil- moil in North America led Pulte land County Sheriff’s Office is Party convention is Sept. 6. to attend any of the semi- patrick’s consulting firm to a 55 percent drop in the Homes Christopher Maloney, of Diane Dunaskiss, wife of nars and events focused on was on Rutherford’s pay- value of supplier mergers Inc., said Northville. former State Sen. Mat the automotive and glass in- roll. and acquisitions in the first Cunningham has been Dunaskiss, is currently the dustries by clicking on the Ⅲ Lou Pavledes, head of half of 2008 compared with Monday serving since last year as only Republican on the Detroit tab at www. Cobo Center 1996-2004, on the same period last year, his com- an interim replacement for board. All candidates in No- exiderdome.com/us. Thursday pleaded guilty to a according to a PriceWater- pany charge related to receiving houseCoopers L.L.P. report would of- Dugas fer a nearly $100,000 from a con- released Wednesday. $7,500 discount on new pur- tractor, the Associated Press There were 121 merger chase agreements with reported. The U.S. attorney’s and acquisition deals worth home buyers for Pulte, Del office also filed a charge $3.1 billion signed in the Webb and DiVosta homes Video and more on ‘Living and Investing in the D’ against Karl Kado, who had first six months of the year, contracts at Cobo Center, ac- bought from Aug. 5-Sept. 15. By now, you’ve probably seen our We know it’s hard to run a small compared with 149 deals Ⅲ cusing him of making false The nonprofit Detroit “Living and Investing in the D” business by yourself. Crain’s Small worth a total of $7.1 billion Youth Foundation is chang- statements on tax returns in special supplement. Deal-makers Talk has guest bloggers who are during the same period in ing its name to YouthVille De- of Detroit are still getting it done, attorneys, entrepreneurs, and 2003 and 2004. 2007. troit effective today. and our stories show the vitality small-business advisers. They Ⅲ Dexter-based ReCellular Ⅲ UFP Technologies Inc. that’s still here. know what they’re talking about, Inc., a cell phone recycling will close its compression and they’re not afraid to share. We’ve added a new dimension to company, plans to add 40 molding plant in Macomb OBITUARIES our coverage this year. On our Web Go to employees over the next Township and consolidate Ⅲ James O’Connor, former site, you’ll find video and exclusive www.crainsdetroit.com/smalltalk three months as it expands additional content for “Living and for more. its Michigan operations in president and co-owner of its Michigan operation. Grand Rapids, Plastics Markline Fuel Oil in Troy, Investing in the D.” We also have While you’re there, sign up for our Ⅲ an interactive map showing the Small Talk e-mail newsletter, so Greektown Casino L.L.C. News reported. Workers died from complications of growth of city neighborhoods. WEB WORLD you can get updates on small- plans to open its expanded will be offered transfers. Alzheimer’s and Parkin- You can find it all at Alan Baker business news three times a gaming floor on Aug. 29, Ⅲ Marathon Oil Corp. has son’s diseases Aug. 2. He www.crainsdetroit.com/livingd. Web General Manager month. weeks ahead of schedule, made a $2.4 million grant to was 80. DBpageAD.qxd 8/1/2008 9:19 AM Page 1

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