Community Ties That Bind Ana, Colorado It Filed a Report with the and Mississippi, U.S

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www.crainsdetroit.com Vol. 27, No. 2 JANUARY 10 – 16, 2011 $2 a copy; $59 a year

Page 3 Potential fines nearly crushed DMC purchase More red flags up at Borders When it comes to firing the Analysts: Chapter 11 an option; company needs a strategy, too

football coach, athletic BY DANIEL DUGGAN And even with Chapter 11 as an week, setting a price target of 50 the remaining stores. directors can’t win CRAIN’S DETROIT BUSINESS option, there are questions of cents on the stock — which traded But it needs a strategy as well. whether that will solve the prob- at a 12-month high of $1.60 and an “If they could emerge from a Withholding payments to sup- lems. all-time high of $37 in 1998. The Chapter 11 filing, they still don’t pliers, senior executives resigning “Right now they’re mired in stock closed Friday at $. have the kind of e-book strategy in and difficulty getting loans are problems with their balance-sheet He said that restructuring debt place to really compete,” Souers among the red flags being raised woes; and they’re in a transform- is a priority for the company and said. “Close to 10 percent of book by Ann Arbor-based Borders Group ing industry, but they don’t have that a Chapter 11 bankruptcy fil- sales are online now, and if it Inc. the capital to alter their business ing may resolve some of the issues. keeps growing at the current pace, The recent moves have financial enough to compete,” said Mike By restructuring its debt to a low- we’re looking at 25, maybe 30 per- analysts urging caution of a near- Souers, an industry analyst cover- er level, and terminating leases cent of all sales in the next five term bankruptcy, and Wall Street ing Borders for S&P Equity Re- where stores are unprofitable, the years.” is worrying about a company that search. company will have more money to leases office space to Borders. No new models at auto show Souers downgraded Borders last devote to competing online and at See Borders, Page 16 — only product specialists

Inside Cancer isn’t Detroit finances still rocky, but, hey, report’s in on time, Barden’s Page 8

Mike Fezzey only battle Health Care Extra was president and general manager at WJR Wife’s petitions may Hospitals’ one-two punch: 760 AM before Costs rise, reimbursements Huntington Bank hired him start assets fight fall, Page 9 last week as BY DANIEL DUGGAN president of the bank’s CRAIN’S DETROIT BUSINESS Southeast Detroit business icon Don Bar- This Just In Michigan den will face battles for his busi- region. Widlak’s bank on path ness, his health and his wife in NATHAN SKID/CRAIN’S DETROIT BUSINESS 2011. to Nasdaq delisting While being treated for lung cancer, Barden A bad year got worse for is facing bank- beleaguered Community Cen- ruptcy of his tral Bank Corp. of Mt. casinos in Indi- Clemens. Community ties that bind ana, Colorado It filed a report with the and Mississippi, U.S. Securities and Exchange and, as of last Commission Thursday that it Huntington banks on Fezzey’s contacts to land clients week, a legal was notified Dec. 30 by the battle with his Nasdaq Stock Exchange that it BY TOM HENDERSON Ohio-based Huntington Bancshares bechler was named president of wife of 22 years. is in violation of listing rules CRAIN’S DETROIT BUSINESS Inc., quickly grew its presence in the Detroit Tigers in 1990. His wife, Barden because the market value of the Grand Rapids area. It has been Dunlap says the veteran Wayne County its publicly held shares had Jim Dunlap found a direct cor- a major lender to the Medical Mile, bankers reporting to Fezzey can COO Bella Marshall, filed a petition been below $1 million for 30 relation between high-profile a complex of some 10,000 doctors give him the help he needs with Jan. 6 to have a Wayne County consecutive business days. community and research employees, and an technical, legal and regulatory is- judge appoint a conservator, saying It faces delisting if it does- involvement CHANGING TIMES early supporter of ArtPrize, the 2- sues. What Huntington didn’t the cancer has spread to his brain n’t get back into compliance and increas- year-old arts contest that has have was someone with Fezzey’s and he is at a stage in which he can by June 28. ing a bank’s WJR: Station drawn national interest and tens community ties and with his po- no longer make rational decisions. The stock opened Friday at commercial thrived as AM radio of thousands of tourists to the re- tential for luring new commercial faded, Page 18 Additionally, Marshall filed a 49 cents. It hit its low of 26 lending after gion. customers. complaint for “separate mainte- cents on Dec. 27. The last he took over Dunlap hopes that the correla- A native Detroiter, Fezzey has nance” a legal tool in which the as- time it traded at $1 or above in 2006 as Grand Rapids-based tion holds for the Troy-based served on the boards of the Corner- sets of a marriage are divided as in was on Sept. 21, two days af- president of Huntington Bank’s Southeast Michigan region. There stone Schools, New Detroit, the Chil- a divorce, but the pair can remain See This Just In, Page 2 Michigan region. are few more active in this com- dren’s Center, Habitat for Humanity, technically married. The office, part of Columbus, munity than the new president he the Detroit Economic Club, The Pa- Barden’s attorney, Henry hired last week, Mike Fezzey, the rade Co., For the Kids Foundation, Baskin, said Friday he planned to longtime president and general Sweet Dreamzzz Detroit and Forgot- file an answer in court today, re- manager at WJR 760 AM. ten Harvest. butting her explanation of his That Fezzey, 53, had no back- Fezzey is also the former chair- client as being “no longer physi- ground in banking other than man of the marketing committee cally or mentally capable” of rep- signing checks and had been a fix- of the Detroit Regional Chamber and resenting his own interests. ture for three decades at the clear- former president of the Detroit Ad- “I just spent two hours with him channel powerhouse made this vertising Association and has been and that’s pretty far from the

NEWSPAPER the most high-profile career change locally since Bo Schem- See Fezzey, Page 18 See Barden, Page 18 20110110-NEWS--0002-NAT-CCI-CD_-- 1/7/2011 6:12 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 10, 2011

the issue with the Obama administration and members of Michi- Kowalski: Hamtramck location a money-loser THIS JUST IN gan’s congressional delegation and continues to seek a waiver of Every day Kowalski Cos. stays in put his plans on hold. so closely associated to.” ■ From Page 1 at least the interest. Stephen its current Hamtramck location it Kowalski said he was looking at Kowalski made sure to point loses money, says Michael Kowal- locations in Novi and Livonia but out that it is possible the company Geskey, director of the Michigan Un- ter President and CEO David Wid- ski, CEO of the longtime Ham- ultimately decided to hold off until may remain in Hamtramck, but employment Insurance Agency, said lak went missing. His body was tramck-based sausage maker. the economic turmoil subsided. he said a lot has to happen in or- that because the issue affects found a month later by duck It operates in about 90,000 With the economy on the der for the company to stay. Stay- about 30 states that are among the hunters, and his death is consid- square feet in three buildings, mend and real estate prices sig- ing in Hamtramck would require largest in the country, he hopes ered a likely suicide by the Ma- each less than a mile apart. nificantly lower than three years tearing down and building new, Congress will support extending comb County Sheriff’s Department. The company is leaning toward ago, Kowalski has signed a letter which is more expensive than the interest-free provision. — Tom Henderson housing all three of its businesses of intent to buy a 100,000-square- buying existing space in Madison But even if the solvency tax re- — manufacturing for the Kowalski foot building at 800 E. 14 Mile Heights. Hamtramck officials Thousands of employers face mains in place, it’s not going to Sausage Co., its distribution/ware- Road in Madison Heights. could not be reached for comment generate enough to pay Michi- house operation, and Homestyle “At this point we are wasting late Friday. additional unemployment tax gan’s interest bill. The tax is ex- Foods Inc., a maker of premade sal- money, so the sooner we get out “Even if we end up staying, we pected to produce $45 million by ad dishes — under one roof. of this building the better, but it won’t be the ones to save the With no reprieve delivered by Sept. 30, when the interest pay- Kowalski said he has been has to be the right move,” Kowal- city,” he said. Washington, an additional unem- ment is due. Geskey said the state looking for places to move the ski said. “It’s a tough decision, Kowalski said the company ployment-insurance tax has kicked has an additional $20 million it company for three years, but the but we have had to think about will most likely make a decision in on thousands of Michigan em- can allocate from an unemploy- bankruptcies of the former Gen- the possibility that we may leave in the next 45 days. ployers. ment-penalty and interest ac- eral Motors Corp. and Chrysler LLC the community the company is — Nathan Skid The state solvency tax of up to count, but that leaves a $52 mil- $67.50 per employee went into effect lion shortfall to make up. this month to help repay an esti- — Amy Lane mated $117 million interest bill on the state’s federal unemployment CORRECTIONS borrowing. It will be assessed on Blues to move 200 workers from A story on Page 11 of the Jan. 3 issue should have Roy, last week. about 54,500 “negative balance” Southfield to Detroit in May said the Early Childhood Investment Corp. is a nonprof- In the Dec. 27 Book of Lists and Sept. 6 Women employers whose employee-benefit it funded through the state and private foundations to Watch, the title of Colleen Haley should have claims exceed UI taxes they paid. The first group of 200 employees that administer the state’s federal quality child been president of OEM business for Yazaki North The federal stimulus law includ- of Blue Cross Blue Shield of Michigan care funding. The ECIC provides professional de- America Inc. ed a temporary interest waiver for will move to Detroit from the velopment for early childhood caregivers and also The Graduate Business Degrees list on Page 61 of Michigan and other states borrow- Southfield office on May 2, Blue works to restructure the state’s investments in chil- the 2011 Book of Lists had an incorrect name, web- ing money. But the waiver expired Cross said last week. dren from birth to age 5, in part through operating site and program listings for the University of Michi- at the end of 2010, and Congress did Sometime during 2012, 3,000 Blue the Great Start system of provider collaboratives gan-Dearborn College of Business. The school has not pass an extension. Cross employees in Southfield will and Great Start Parent Coalitions. dropped its Web MBA and master’s in engineering The solvency tax comes on top of move to the GM Renaissance Center. A story on Page 6 of the Jan. 3 issue incorrectly management and public administration, and has additional federal UI taxes that be- Blue Cross already employs included Damian Kassab as part of Macomb Coun- added a master’s in finance and information sys- gan last year on all Michigan em- about 3,000 employees in its two ty Executive Mark Hackel’s administration. Dami- tems as well as a dual MBA/master’s in informa- ployers, to repay principal on what downtown Detroit locations, on an Kassab resigned as assistant executive, and Al- tion systems. For a detailed listing of programs, vis- is now $3.7 billion in federal loans. East Lafayette and Jefferson. bert Lorenzo will fill in part time. Hackel also it www.cob.umd.umich.edu. For a corrected Gov. Rick Snyder has taken up — Jay Greene named an additional assistant executive, Melissa version of the list, go to crainsdetroit.com/lists. Health Care Experience Our Flu Shot Clinic In Your Corner. comes to your ofﬁce. 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January 10, 2011 CRAIN’S DETROIT BUSINESS Page 3

Inside Options for cash-strapped Fines could have sunk DMC deal DPS may include GM-style split, Page 4 Improper perks for doctors included lease deals, tickets Bishop joins Detroit law firm

BY JAY GREENE signed to the DMC case. announce that DMC would pay a as state lawmakers move on. CRAIN’S DETROIT BUSINESS “When DMC came to us, they $30 million settlement to resolve Capitol Briefings, Page 5 They came to us said if we do not resolve this prob- the improper financial relation- The deal to sell Detroit Medical “ lem with the government, the deal ships with physicians, Duggan de- Center to Vanguard Health Systems hat in hand. with Vanguard could collapse and scribed them as “technical viola- Inc. almost collapsed last fall when ” there is a real possibility that DMC tions” that were “minor” in DMC officials began to catalog Peter Caplan, U.S. Attorney’s office could close,” Caplan said. nature. hundreds of potential incidents of “They came to us hat in hand But Caplan said that shortly af- Medicare and Medicaid fraud and documents outlining potentially and told us they thought they had ter DMC reported the potential vi- possible violations of physician improper financial relationships a lot of problematic relationships” olations, federal officials deter- Company index anti-kickback laws. with more than 250 physicians to with physicians, Caplan said. mined by the volume of documents After an internal investigation U.S. Attorney Barbara McQuade’s DMC CEO Mike Duggan de- that DMC’s “potential exposure These organizations appear in this week’s Crain’s by DMC that ended in November, office in Detroit, said Peter Ca- clined to comment for this story. Detroit Business: DMC officials brought two boxes of plan, an assistant U.S. attorney as- But at a press conference Dec. 30 to See DMC, Page 15 Agree Realty Trust ...... 16 Barden Development ...... 18 Barron Rosenberg Mayoras & Mayoras ...... 18 Baskin Law Firm ...... 18 The one constant Blue Cross Blue Shield of Michigan ...... 9 Borders Group ...... 1 Brooks Wilkins Sharkey & Turco ...... 4 Chrysler Group ...... 16 in firing a coach: Clark Hill ...... 15 Detroit Medical Center ...... 3 Detroit Public Schools ...... 4 Dickinson Wright ...... 18 Criticizing the AD Domino’s Pizza ...... 17 Ford Motor ...... 16 Too slow, too fast or Gail & Rice ...... 16 General Motors ...... 16 General Sports & Entertainment ...... 17 too many opinions? Greater Detroit Area Health Council ...... 11 Henry Ford Health System ...... 9 BY BILL SHEA CRAIN’S DETROIT BUSINESS Homestyle Foods ...... 2 Huntington Bank ...... 1 University Jack Swarbrick understands what Joyce Julius & Associates ...... 17 of Michigan Athletic Director David Brandon has been through over the past few weeks. Kowalski Sausage ...... 2 Swarbrick, a longtime Indiana lawyer involved McTevia & Associates ...... 16 in athletics issues, was hired Michigan Department of Treasury ...... 8 as the University of Notre Dame’s Michigan Health & Hospital Association ...... 10 athletic director in July 2008 Miller, Canfield, Paddock & Stone ...... 4 DUSTIN WALSH/CRAIN’S DETROIT BUSINESS and made the decision to fire Mpro ...... 11 Margery Krevsky, president and owner of Bingham Farms-based Productions Plus Inc., shows off notable football coach Charlie Weis at dresses from auto shows' past. Mt. Clemens Regional Medical Center ...... 11 the end of the 2009 season. Both the Notre Dame and O’Keefe & Associates ...... 9 Michigan football programs Oakwood Healthcare ...... 9 are national, high-profile Plunkett Cooney ...... 15 teams that produce the bulk Productions Plus ...... 3 ‘Red hot of their athletic departments’ Brandon Sinai-Grace Hospital ...... 11 revenue, and both Weis and UM’s recently fired Rich Ro- Specs Howard School of Media Arts ...... 18 driguez were lightning rods St. Joseph Mercy Oakland ...... 10 for criticism that spilled over St. Joseph Mercy Oakland ...... 11 information people’ onto the athletic directors. Thomson Reuters ...... 9 While Swarbrick was criti- Turnaround Management Association ...... 8 cized for what some thought University of Michigan ...... 3 was firing Weis too quickly, Auto show specialists sell with facts, not just flash Brandon has been blasted for Valassis Communications ...... 17 weeks by sports columnists Vanguard Health Systems ...... 3 BY DUSTIN WALSH 46, said. “Fifteen years ago, the In- and commentators, and a William Beaumont Hospitals ...... 9 CRAIN’S DETROIT BUSINESS ternet wasn’t what it is today. AUTO SHOW Swarbrick There’s so much information out good chunk of the Michigan WJR 760 AM ...... 18 Mason Holliday spends Septem- there, and we have to be on our toes SCHEDULE fan base, for not firing Ro- ber through May touring the 65-city because the consumer is very driguez sooner than he did FRIEND’S TAKE Press last Wednesday. Critics have North American auto show circuit knowledgeable today.” Preview: said Brandon waited too long, Al Schultz: touting every intricate detail of Toy- Product specialists “have to be Today-Tuesday Brandon “very damaging the university’s ota’s latest hybrid system to the red hot information people and they Industry process- Department index stopping distance of the 2012 Toyota have to be able to talk car,” said ability to recruit players and oriented,” Page Preview: hire a new coach. BUSINESS DIARY ...... 12 Camry. Margery Krevsky, Productions Plus Wednesday- 17 However, a Crain’s analysis A product specialist for Bingham president and owner. Thursday CALENDAR ...... 14 shows that there has been no established tem- Farms-based Productions Plus Inc., Krevsky’s firm has been hiring CAPITOL BRIEFINGS...... 5 Charity plate for changing coaches at major college foot- he’s been on the circuit for 15 years and training thousands of models, Preview: Friday ball programs in the past decade. (See Page 17.) CLASSIFIED ADS ...... 14 and during that time he’s seen the now called product specialists, for Public Show: Instead, the major football programs saw KEITH CRAIN...... 6 job evolve from simply showing off automakers’ U.S. auto show dis- Saturday- coaches retire, leave for the National Football MARY KRAMER ...... 7 the cars to providing increasingly plays since 1983. Productions Plus Jan. 23 League, get fired before or after a bowl game — OPINION ...... 6 more technical information. generated $22 million in revenue in Web site: or get fired outright because the team had stum- PEOPLE ...... 12 “We’ve definitely had to become www.naias.com savvier since I’ve started,” Holliday, See Auto show, Page 16 See Brandon, Page 17 RUMBLINGS ...... 19 WEEK ON THE WEB ...... 19 Follow the action Looking to grow your small business? THIS WEEK @ Read Crain's reporters blogs from the The SBA has a new loan program. Learn how to get North American International Auto Show in on it, crainsdetroit.com/secondstage. Sign up for WWW.CRAINSDETROIT.COM this week, crainsdetroit.com/autoshow the e-newsletter, crainsdetroit.com/crainsemails 20110110-NEWS--0004-NAT-CCI-CD_-- 1/7/2011 6:14 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 10, 2011 State, DPS look at deficit options, including GM-style split of district BY DUSTIN WALSH “Whether they can speed it up that After the district bankruptcy CRAIN’S DETROIT BUSINESS way is an open question. The fallout last year, unions and vendors for cases like these will generally made concessions, including 25-40 The Detroit Public Schools’ poten- take years.” percent cost cuts from suppliers to tial lobby to the state Legislature Also, any deal involving bank- keep it out of bankruptcy. to split the district into two enti- ruptcy will affect the district’s abili- The district will run out of oper- ties to free it of its $327 million ty to get financing in the future. ating cash in March and is under deficit has merits and disadvan- Detroit-based Miller, Canfield, pressure from its debt insurer — tages, local observers say. Paddock and Stone PLC is reviewing Hamilton, Bermuda-based Assured The restructuring would be simi- the legality of the restructuring op- Guaranty Ltd., backed by billionaire lar to that of then-General Motors tion and said the district is not investor Wilbur Ross — to seek a Corp.’s 39-day bankruptcy reorgani- looking at Chapter 9 bankruptcy no-bankruptcy agreement with the zation in 2009, where the U.S. gov- as an option. Legislature before the district ernment backed a split of the com- “The district is not pursuing seeks short-term lending for oper- pany. One part contained bankruptcy but is working active- ating cash, Bobb told Bloomberg underperforming assets and ly with the state to develop a long- last week. $176.4 billion in liabilities. A second term solution to the district’s fis- Without the agreement, Assured operating company was renamed cal challenges,” said Amanda Van would require the district to accel- General Motors Co. and emerged with Dusen, public finance lawyer at erate long-term debt payments to fewer employees, half as many Miller Canfield. about $45 million a year, from brands and lower costs. Detroit-based Clark Hill PLC is about $21 million a year, he said. Robert Bobb is expected to deliv- also working with the district on Bobb doesn’t have much time to er three viable district finance op- the issue. get a plan rolling: His contract ex- tions, including the split-entities “We are certainly having some pires in March. idea, to state officials as early as dialogue with Mr. Bobb and DPS In his two years with the dis- today, DPS officials said. about how to move forward but trict, he has closed 59 schools, ne- Gov. Rick Snyder, in an inter- can’t comment further,” said Bob gotiated $105 million in union con- view last Thursday, did not com- Gordon, a member of Clark Hill’s cessions, eliminated $272 million mit to a specific plan for what he’d corporate restructuring and bank- in budget requests and kicked off like to see happen with DPS. ruptcy practice. an academic reform plan that “We’re looking at all the differ- The other options include state- seeks a 98 percent graduation rate ent options,” he said. “In terms of issued bonds to fill the budget gap by 2015. Detroit + = the state just simply taking on and a plan to create turn schools Dustin Walsh: (313) 446-6042, obligations, … that’s not a good within the district into charter [email protected] starting point. schools, as the Louisiana Legisla- Crain’s reporter Amy Lane and “In many respects, the question ture did in New Orleans in 2005 in Bloomberg News Service con- is: How do we get a successful the aftermath of Hurricane Katrina. tributed to this story. school district working for the long growing with a strong (& fun!) term? And that’s the key thing that’s on my mind. … How do we help these kids succeed? Every- MI based company! thing starts off with that premise: to have a good, strong, long-term plan record sales growth! for the success of the students in the Detroit Public Schools and all our public schools.” Snyder said Bobb has talked to waking up every morning! people in his administration about the restructuring plan and other options, but he has not met with BIGGBY COFFEE Franchise Info Bobb specifically on the plan. Asked about other options the district has looked at, like securi- www.biggby.com tizing tobacco settlement dollars and adding more charter schools, and whether those are things that should be looked at, Snyder said: “Everything’s on the table … in terms of how we can work with districts in trouble” that are under the state’s stewardship, but “it’s premature to get into specifics.” Plus, Motors Liquidation Co., the entity holding GM’s pre-bankruptcy debt, is still handling millions in debt a year and a half later. Splitting the district in two may require the debt-burdened half to file a Chapter 9 bankruptcy, which would be a long, expensive battle for the district, said Matt Wilkins, partner and head of the bankruptcy practice at Birmingham-based Brooks Wilkins Sharkey & Turco PLLC. “In addition to being expensive, they are time-consuming for management,” he said. “The GM and Chrysler cases were rare, and that could have not have happened without the involvement of the U.S. government.” Wilkins is unsure whether the cash-strapped state could support a pre-packaged financing plan like the one GM received from the U.S. government. “(The state) has its own problems, financially,” he said. 20110110-NEWS--0005-NAT-CCI-CD_-- 1/7/2011 4:27 PM Page 1

January 10, 2011 CRAIN’S DETROIT BUSINESS Page 5 Bishop joins Clark Hill as WEBCAST EVENT The State of the Estate Tax The return of the federal estate tax requires former lawmakers move on aggressive planning strategies Thursday, January 13, 2011 LANSING — Newly ■ Sen. Gilda Jacobs, D- Ⅲ Jan Winters, who has been Noon to 1:00 p.m. EST departed from the Legis- Huntington Woods, vice deputy director in the Michigan Civ- RSVP: Call 1.800.847.6424 or lature, Senate Majority Capitol chairwoman of the Sen- il Service Commission, will be direc- visit www.mcdonaldhopkins.com Leader Mike Bishop, R- Briefings ate Families & Human tor of the Office of State Employer, Rochester, is returning Services Committee and overseeing labor relations with Attorneys on a Mission® to his attorney roots. two other Senate com- state employees. Your mission is our mission. Snyder signed his first execu- Bishop, whose 12 mittees, and now presi- We never lose sight of it. years in the Legislature dent and CEO of the tive order to reorganize state gov- ended in December, Michigan League for Hu- ernment, splitting the Michigan De- starts today at law firm man Services. The Lans- partment of Natural Resources and Clark Hill PLC, working in ing-based nonprofit an- Environment into the Michigan De- the Detroit-based firm’s nounced in August that partment of Environmental Quality and the Michigan Department of Nat- A business advisory and advocacy law firm® Birmingham office and Amy Lane Jacobs would succeed focusing on public poli- Sharon Parks, who re- ural Resources. 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 cy, business law and government tired in December. He also announced that his first Carl J. Grassi Stephen M. Gross relations work. He’s a member in In addition, Snyder is expected State of the State address will be President Detroit Managing Member Jan. 19. the firm’s government and public to name former House Minority Chicago • Cleveland • Columbus • Detroit • West Palm Beach affairs group. Leader Kevin Elsenheimer, R-Bel- Amy Lane: (517) 371-5355, [email protected] www.mcdonaldhopkins.com It’s a return to a pursuit Bishop laire, to oversee the state Workers’ has long enjoyed. He first started Compensation Appellate Commis- his own law firm after graduating sion, and to tap former Sen. Jason from the Detroit College of Law and Allen, R-Traverse City, for a post then moved to other law prac- in the Michigan Department of Mili- tices. tary and Veterans Affairs. He was elected to the state Allen was chairman of the Sen- House in 1998 and to the Senate in ate Senior Citizens & Veterans 2002, but even during his legisla- Affairs Committee and the Senate tive career he looked toward mov- Commerce & Tourism Commit- ing into the private sector when tee. his term was Also, former Sen. Buzz Thomas, over, citing it as D-Detroit, has said he plans to a goal when he form a public-affairs company. was named one A question yet to be answered: of Crain’s 40 Un- What will former Gov. Jennifer der 40 in 2006. Granholm do now that she’s moved “I always out of the governor’s office and res- knew that I was idence? Word may come soon. going to go back “I expect the governor will to the private have something to say later this sector, and I month about the work she’ll be Bishop love the practice doing this year,” said former of law,” Bishop said last week. Granholm press secretary Liz “I’ve always enjoyed the profes- Boyd in a comment e-mailed to sion and the challenge of the pro- Crain’s. fession. So this was really my ideal She said the family has rented a place to return.” condominium in the area so they Bishop doesn’t anticipate he’ll can remain while son Jack, 13, spend a lot of time in Lansing in completes his year in the eighth his new role, although he may go grade. there occasionally. He said that in leaving the Legis- Snyder transition lature, he takes with him “a really genuine understanding of public Gov. Rick Snyder expanded his policy — what goes into it, what team last week: the considerations are, how to get Ⅲ Michigan Supreme Court Justice things done,” and that will bring a Maura Corrigan was picked to head “unique perspective” to Clark Hill the state Department of Human Ser- vices. Her departure means Snyder and clients. will pick his first Supreme Court “I loved my job in the Legisla- justice, which he plans to do this ture. I’m a Senate man; I always week. will be,” Bishop said. “I’ll miss it. Ⅲ Maj. Gen. Gregory Vadnais, a But I’ll enjoy watching it from the retired Indiana National Guard com- outside and (seeing) how they Buildings Spoiling Your Business? mander, was tapped to be director do.” of the Michigan Department of Mili- Bishop is among several state tary and Veterans Affairs. He was Aligning real estate assets to your changing business Lease Renegotiation lawmakers to move on to new sworn in as adjutant general of plans is crucial in this economy. Plante Moran CRESA jobs. The former lawmakers in- the Michigan National Guard and de- Tenant Representation clude: partment director, according to will create a real estate strategy that adds to your ■ Senate Natural Resources & the department’s website. He’ll Incentives Environmental Affairs Committee succeed Maj. Gen. Thomas G. bottom line. Since we do not represent buildings or chair Patricia Birkholz, R-Saugatuck Cutler. landlords, our unbiased approach will focus solely on Sale Leaseback Township, tapped by Gov. Rick Sny- Ⅲ Campaign manager Jeff Barnes der to be director of the Office of the was named deputy chief of staff your success. (248)223-3500 pmcresa.com Project Feasibility Great Lakes. and public safety group executive. ■ House Majority Floor Leader He will coordinate the Michigan De- Lease Administration Kathy Angerer, D-Dundee, who is partment of Corrections, Michigan De- joining AT&T Michigan as execu- partment of State Police and Michi- Buyer Representation tive director of government af- gan Department of Military and fairs. Veterans Affairs. Project Management ■ Rep. Dudley Spade, D-Tipton, Ⅲ Attorney Brian Rooney, direc- who chaired the House Appropria- tor of communications and devel- tions Committee’s subcommittee on opment at the Thomas More Law human services and has become a Center in Ann Arbor, will be a deputy director in the Michigan De- deputy director in Human Ser- partment of Human Services. vices. 20110110-NEWS--0006-NAT-CCI-CD_-- 1/7/2011 6:05 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS January 10, 2011 OPINION Those who paid to play may be guilty, too

ompanies that bribe foreign officials break federal law under the Foreign Corrupt Practices Act. C Enforcements by the U.S. Department of Justice have escalated, from just five in 2004 to 74 last year against U.S. and foreign-based companies accused of offering gifts, favors and outright bribes to curry favor — and contracts. The latest was the $137 million settlement in December with Paris- based Alcatel-Lucent over accusations that it had paid bribes in Costa Rica, Taiwan and Kenya. So what about companies involved in the Kwame Kil- patrick scandals? Indictments coming down in the circles of corruption en- gulfing Kilpatrick and other city officials have shielded names of companies and executives who were pressured to cough up cash and favors to Team Kilpatrick. U.S. Attorney Barb McQuade has called some of the executives who paid cash or offered free rides or tickets to events to Kilpatrick and his cronies “victims” themselves. To some people, that could sound like a double standard. It’s one thing if a contractor with a properly awarded contract for city business is served with a demand to cough up cash or add a crony to a contract. It’s another if the contractor willingly paid “considera- tion” to get the contract in the first place. It will be months, even years, before the latest Kilpatrick- TALK ON THE WEB related indictments go to trial. In the meantime, we hope feder- From www.crainsdetroit.com al prosecutors use public forums targeting the business community to: Re: Detroit Zoo attendance strong Reader responses to stories and Re: A&P bankruptcy creates Ⅲ Make clear why the shakedowns by local officials make We all need to realize just how blogs that appeared on Crain’s headache for subleasing tenants lucky we are to have such a wonderful local business executives victims rather than criminals, and Web site. Comments may be Given the vast swaths of open zoo right in our own backyard. Ku- edited for length and clarity. commercial retail space in the Ⅲ What companies and executives should do when con- dos to everyone who has enjoyed it area, it looks bad for Farmer Jack’s fronted with public corruption. over the past five years. tlchusker Re: Anatomy of a media frenzy former landlords this year. Timothy Dinan While I agree we have a wonder- I’ve been grateful to Crain’s in A GM-type split for DPS? ful institution in our backyard, I particular for being a reasonably have to again ask how much reliable offset to the monopoly of Re: Hackel names interim Could what’s good for General Motors be good for Detroit longer we are going to try funding news voice that the Freep/News Macomb department heads everything on the backs of home- have tried to maintain. Please, Public Schools? That’s what emergency financial manager owners. … Whatever happened to The director of finance retires, please keep trying to get it, if not al- and I’m sure collects a pension, Robert Bobb intends to find out. budgeting to available funding? ways first, always right. and then continues to work for As Dustin Walsh reports on Page 4, Bobb wants to split the RobertArch BrendanB school district into two entities: one that holds the district’s the county as a consultant. … Now he returns as the finance director legacy deficit, the other to start with a clean financial slate. Re: Rich Rodriguez fired Re: DMC awards $60M again. Will he continue to collect a (Motors Liquidation Co., the legacy company that holds the Perhaps there was never a fit be- in construction contracts pension while he collects a pay- pre-bankruptcy GM debt, is still disposing of properties and tween coach and team; maybe it’s check? Why do race, ethnicity and sex handling millions of dollars in debt.) a Peter principle in action. No mat- RobertArch need to be considered at all in de- Any DPS plan likely will need the backing of Gov. Rick ter what, University of Michigan moves forward with its program. ciding who gets awarded a con- Snyder, who made it clear to Crain’s last week that his starting Timothy Dinan tract? … It breeds corruption and oth- Re: Kilpatrick working on book? point is: “How do we get a successful school district working Costly coach all the way around. erwise costs the taxpayers money to The proceeds for any book or for the long term? How do we help these kids succeed?” Thomas Sullivan award a contract to someone other movie should go toward restitution We suspect Snyder and Bobb will find some kind of com- Pride goeth before the fall? than the lowest bidder. to the victims of his crimes. mon ground. Walt RogerClegg Bloomfielder KEITH CRAIN: Let’s take advantage of an exciting week It always amazes me when some- will spend just about the evening hours. tions, there is nothing that hap- seems to be rebounding. Ex- thing around 7,000 journalists entire day cooped up in And like ghosts, by pens in this town to even approach hibitors who left have come back, from all over the world descend on some small rooms at Wednesday — unless the economic impact of the inter- and attendance by journalists downtown Detroit for just a few Cobo Hall talking to me- they are speaking at the national auto show. seems larger than ever. days in the depth of winter. dia — except for the Automotive News World Whatever it takes to keep the But Cobo Center still needs a mas- It’s the time of year for the time they are let out to Congress — the press show in Detroit has to be done. It sive investment to make sure this North American International make presentations to and the executives will hasn’t been done so far, and the show continues to prosper. Band- Auto Show. It’s an exciting time the multitude of press be gone as magically as clock is ticking. Aids won’t work. Yesterday isn’t for everyone connected with De- for 30 or 40 minutes. they appeared. No one is going to steal the show soon enough for this investment. troit or the automobile industry. Then, back into the win- They will have left from Detroit. It will be much sad- Detroit has a wonderful asset Beginning yesterday, the press dowless rooms they go $400 million or so in der. It will just slowly fade away, that we can enjoy and that can conferences, dinners and special for more interviews. their wake, all in a cou- with fewer journalists attending, help people prosper. But it needs presentations began, put on by the Sadly, January is not the best ple of days. Not bad for Detroit’s smaller exhibits and a quiet down- an upgraded facility and reason- top management of car companies time to see Detroit, but perhaps GNP. As much as we love football sizing until it goes back to being able labor rates. from all over the globe. our visitors will have a chance to Super Bowls, the golf tournaments just another local car show. Let’s not kill the goose that lays Today, those same executives enjoy our hospitality during the and other trade shows and conven- This year, though, the show the golden eggs. 20110110-NEWS--0007-NAT-CCI-CD_-- 1/6/2011 5:32 PM Page 1

January 10, 2011 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Heart Walk: Networking for a good cause

On May 14, thousands of run- Riney’s executive The AHA has also start- Such friendly competition helps to year. ners and walkers will descend on leadership team in- ed initiatives focused raise the cash. Take the example Skip Drayton, Burnett’s execu- Ford Field for the annual Detroit cludes people from on childhood obesity. from the advertising agency com- tive vice president, said any com- Start! Heart Walk sponsored by the health care as well as Crain’s will invite munity, which collectively raised pany tied to the advertising busi- American Heart Association. The Fifth Third Bank, the alumni from our “20 in more than $33,000 among teams ness could be part of the walk will start and end at Ford construction firm Bar- their 20s” and “40 Un- from five agencies. Leo Burnett in competition. Field. ton Malow, law firm der 40” recognition Troy won the inaugural “Kat’s If companies are interested, If you want to honor someone Plunkett Cooney and programs to join us for Cup” by raising nearly $21,000. they should contact Catherine who succumbed to heart disease or yours truly, represent- the walk. We envision The cup is named in honor of Smith at the heart association, if you’re just thinking about adopt- ing Crain’s Detroit a great networking George Katsarelas, Leo Burnett’s [email protected]. ing healthier habits for the new Business. event — albeit in run- executive creative director, who year, this walk is a great way to do I’ve never walked in ning shoes — that can died at age 49 after suffering a Mary Kramer is publisher of it. the event (trust me, I double as a fitness pro- heart attack in 2009. Crain's Detroit Business. Catch her The volunteer leadership team walk, not run) but I liked the idea gram. We may even have a friend- The trophy is a black Converse take on business news at 6:10 a.m. has set $1.4 million as the fundrais- it was downtown and it benefits re- ly competition to see who can tennis shoe, dipped in Mondays on the Paul W. Smith show ing goal for 2011 — up from $1.3 search and education in our own raise more per walker — the 20- polyurethane coating, with a base on WJR AM 760 and in her blog at million raised by sponsorships region. Money raised goes back to somethings or the slightly older that can carry plaques recognizing www.crainsdetroit.com/kramer. and by 15,000 walkers and runners, research, education and advocacy. success stories. the winning companies from year E-mail her at [email protected]. including teams from more than 100 companies. Bob Riney, who chairs this year’s walk, hopes to replicate the experience in Minneapolis when the event moved to Target Field last year. The walk raised $400,000 in new dollars and brought 25,000 walkers and runners downtown. Surely Detroit can field more than 15,000.

ATTENTION, DEALMAKERS Involved in a merger or acquisition in 2010? You may be eligible for the third annual Crain’s M&A Awards or Crain’s Biggest Deals of 2010. Biggest deals Deals of $10 million or more in transaction value that were initiated or closed during 2010 will be published in the Jan. 31 issue. To be considered, the buyer or sold company or company unit must be in Southeast Michigan. Information needed is: Buyer, sold unit, transaction value, advisers, revenue of sold unit, date the deal closed if it has closed and any explanatory information needed. Please submit by e-mail by Jan. 18 to Executive Editor Cindy Goodaker at [email protected]. M&A awards Crain’s Detroit Business and the Detroit chapter of the Association for Corporate Growth will honor companies and individuals in the following categories: Ⅲ Best Deal of the Year: Under It’s time for your business to $100 million and $100 million or more. Deals must have closed in 2010. accomplish big things again. Ⅲ Dealmaker of the Year/buyer- seller. Ⅲ Dealmaker of the Year/adviser: M&A experts, lenders, CPAs, consultants and attorneys, among others, are eligible. Ⅲ Lifetime Achievement: Senior- level executive who has been involved in significant transactions and has made a significant impact on the community. Applications for the awards can be found at www.crainsdetroit.com/nominate. Now’s the time to reinvest in your business’ future. The deadline for entering is Jan. 14. The last few years haven’t been easy. It’s been work just to maintain the business you’ve built. Winners will be profiled in the Feb. 28 issue and honored at an event It’s time to get back to growing it. Whether that means buying new equipment, improving your in the spring. For questions concerning the working capital, or reinforcing your overall ﬁnances, Fifth Third Business Bankers can help you nomination process, contact take action to get your business moving forward with conﬁdence. Stop in your local Fifth Executive Editor Cindy Goodaker at [email protected] or (313) Third Banking Center, call 1-866-534-7249, or visit 53.com, and let’s get your business moving. 446-0460. For help in using the nomination form, contact Marketing Coordinator Kim Winkler at [email protected] or (313) Loans subject to credit review and approval. Fifth Third Bank, Member FDIC. Equal Housing Lender. 446-1652. Information on the Detroit chapter of the ACG at chapters.acg.org/detroit. 20110110-NEWS--0008-NAT-CCI-CD_-- 1/6/2011 5:44 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 10, 2011 ShowShow Them Them What What YouYou StandStand For For Detroit’s finances still rocky;

BBB Accreditation is a commitment to fairness and honesty that lets report’s timeliness a bright spot BY NANCY KAFFER implemented accounting require- consumers know you are a business CRAIN’S DETROIT BUSINESS ment that the city mark-to-market they can trust - a business that This shows that its assets. Detroit’s comprehensive annual “ Mark-to-market accounting honors its promises and embodies financial report paints a familiar the city is serious means gauging the value of an as- picture: a city on rocky financial set based on its current market confidence they deserve. ground. about reporting on a price rather than, for example, the But there is some cause for opti- price paid for the asset, even if Your customers start with mism in the fiscal 2010 report, start- more timely basis. there are no plans to sell the asset ing with it being the first annual re- ” until its value increases. bbb.org. port since 2006 to be filed on time. Irvin Corley Jr., city of Detroit Bing pledged during his cam- The state-required annual re- paign to speed up filing of the an- Shouldn’t you? ports, which, in part, reconcile the cline, noted Irvin Corley Jr., the De- nual report. That he met the year- fiscal year’s actual revenues and troit City Council’s fiscal analyst. end deadline is good news, Corley expenses with its budget, should Members of Detroit Mayor Dave said. be filed by year’s end, six months Bing’s communications team said “I think the fact that the CAFR after the June 30 close of the city’s they were not able to respond with was submitted to the state on time fiscal year. Late filing can lead the a comment in time for Crain’s was a tremendous event,” Corley state to withhold revenue-sharing Thursday deadline for this story. said. “This shows that the city is dollars from the city. “The amount of borrowing in serious about reporting on a more However, the city’s situation the future for capital improvement timely basis where it stands finan- continues to be troubling. There’s for general fund-type activities cially, and this helps both the may- still a deficit in the general fund. will be limited,” Corley said. “To or and the City Council to more By some accounts, the deficit is add to the concern, the fact that timely address some of the struc- down to about $91 million, but the property values are continuing to tural problems.” ® report notes that the accumulated, go down means the legal debt mar- And, Corley noted, having the unreserved, undesignated general gin threshold could shrink even report makes it easier for the may- Start With Trust fund deficit is $155 million. The further because it’s based on the or’s team to develop — and for the general fund totaled $1.8 billion in assessment value.” council to approve — a realistic fiscal 2010. Property taxes made up 13.2 per- budget. Better Business Bureau And the city’s ability to borrow cent of the city’s revenue in fiscal “It allows numbers folks to feel Serving Eastern Michigan and the Upper Peninula is sharply curtailed. Not only is 2010, according to the report, down more comfortable with the assump- Call 248-224-9600 to learn more Detroit’s credit still rated below in- $13.4 million from fiscal 2009. tions we’re making, because we’re vestment grade by all three rating Detroit’s dependence on short- getting more reliable and up-to-date or go to bbb.org agencies, the city is approaching term borrowing to plug budget information,” Corley said. “Getting its legal debt ceiling. holes has decreased; at the end of the CAFR out more timely coupled Just $299.1 million of the $1.2 bil- fiscal 2009, the city had $223 mil- with the administration’s goals to lion the city is legally able to bor- lion in short-term debt, compared report budget information on a row is still available for use, and with $35 million at the end of fiscal monthly basis is going to make the that number could decrease — the 2010. monitoring role for the city’s fi- debt ceiling is 10 percent of the val- The value of the city’s total net nances even more effective.” ue of property in the city. assets decreased by $635 million, Nancy Kaffer: (313) 446-0412, That number continues to de- in large part because of a recently [email protected] Agenda set for emergency financial manager training

BY TOM HENDERSON is now an attorney with the Bloom- must be sent to Eric Scorsone, as- CRAIN’S DETROIT BUSINESS field Hills-based law firm of Plun- sistant professor, MSU College of kett Cooney PC, Agriculture and Natural Re- A new program has been estab- was in charge of sources, at lished by the Michigan Department putting the [email protected], or by mail of Treasury and the state chapter of agenda together. to him at 202 Agriculture Hall, the Turnaround Management Associa- The sessions Michigan State University, East Lans- You Deserve: A Comprehensive Business Transition tion to certify emergency financial run from 8 a.m. ing, MI 48824-1039. managers. to 5 p.m. on the Tom Henderson: (313) 446-0337, Find us at PMFA.com. The agenda for the first two-day 9th, followed by [email protected] training program has been set. It a reception from will be held Feb. 9-10 at the Henry 5-7 p.m., and Center for Executive Development at from 9 a.m. to Dillon Michigan State University. noon on the UPCOMING BREAKFAST ROUNDTABLE: “It’s my intention not to recom- 10th. CRAIN’S SEEKS 20S CANDIDATES mend anyone as an emergency fi- Speakers will include Robert nancial manager to the governor Bobb, the emergency financial Do you know a 20-something who January 19 who has not gone through this,” manager for the Detroit Public is someone to watch? Crain’s 20 in their 20s awards program seeks The Road Ahead: What Can We Expect in the Coming Year? said state Treasurer Andy Dillon, Schools, as well as experts on mu- young professionals who are who told Crain’s in December that nicipal law, accounting and taxa- making their marks in the region. a more rigorous process had to be tion, mergers and acquisitions, All roundtables will be held from 7:30-8:30 a.m. at These entrepreneurs and creative 27400 Northwestern Hwy., Southﬁeld, MI 48034. developed in anticipation of what and turnarounds. thinkers may not have made their could be a wave of distressed mu- The turnaround specialists will first million dollars — but they’re Visit roundtables.pmfa.com to register. Seating is limited. nicipalities and school districts hit be from the Government Turnaround living proof that there is work under by declining property tax rev- Association, a unit of the state chap- way by young people to counter the enues in coming years. ter of the Turnaround Manage- region’s brain drain. Dillon met with about 20 busi- ment Association that was created Winners will be profiled in Crain’s ness leaders at the Detroit Regional in December. 20 in their 20 issue on May 2 Chamber in December to kick-start “I don’t expect emergency finan- and honored at a spring awards event. a training program. He said it was cial managers to be experts in crucial to improve the skills of everything we cover,” said Dillon. Nominations must be received by Jan. 14. Visit emergency financial managers, “But at the least they’ll have con- INVESTMENT MANAGEMENT I *TRUST SERVICES www.crainsdetroit.com/nominate *INSURANCE SERVICES I *TAX PLANNING who under state Public Act 72 are tact information to resources they for more information. appointed by the governor, and to can use down the road.” ESTATE PLANNING I WEALTH MANAGEMENT Questions? Contact Jennette formalize their training. The cost of the training program BUSINESS TRANSITION I PHILANTHROPIC PLANNING Smith, deputy managing editor, at Edward Plawecki Jr., a former is $95. Would-be attendees will be [email protected] or (313) 446- QHHGTGFVJTQWIJCHſNKCVGUQH2/(# Wayne County Circuit Judge and screened to make sure they have a 1622. Wayne County commissioner who relevant background. Résumés 20110110-NEWS--0009-NAT-CCI-CD_-- 1/6/2011 4:08 PM Page 1

January 10, 2011 CRAIN’S DETROIT BUSINESS Page 9 Extra REDUCING RETURNS Hospitals target ER patient flow, costly readmissions, Page 11

People

Virginia Ramachandran, Au.D., an audiologist with Henry Ford Hospital in Detroit, is One-two punch president-elect of the Michigan Academy of Audiology. Ramachandran, a Local hospitals hit with rising costs, falling reimbursement senior staff audiologist in the BY JAY GREENE insured employers paid. This repre- “The insurers are negotiating lower Ramachandran division of audiology, CRAIN’S DETROIT BUSINESS sents about 25 percent of total U.S. increases year over year,” said Vitale. department of otolaryngology-head and health care expenditures, Thomson “Another (negative) impact to our rev- neck surgery, has been a member of the ospital prices at William Beaumont Reuters said. enue is the shift from better payers to Michigan Academy of Audiology for three Hospitals, Henry Ford Health System, Three-hospital Beaumont’s prices the lower payers, Medicare and Medic- years and served for two years as H Oakwood Healthcare and most other have risen 2 percent to 3 percent annu- aid.” treasurer of its executive board. hospitals in Southeast Michigan have ally over the past five years, said Nick Vitale said five to 10 years ago Beau- Peter been rising more slowly the past sev- Vitale, senior vice president of finan- mont received rate increases in the McCullough, M.D., eral years cial operations. 4 percent to 5 percent range. chief academic and than na- scientific officer for Henry Ford’s price increases have In 2011, Vitale said, Beaumont is ex- St. John Providence The insurers are tional aver- ranged from zero percent to 3 percent pecting only a 1 percent increase in re- Health System in “ ages, ac- annually the past several years, said imbursement rates for commercial, Warren, was named negotiating cording to Jim Connelly, the six-hospital sys- Medicare and Medicaid patients. chairman of the hospital of- tem’s CFO. Michael Boudreau, director with National Kidney lower ficials and Doug Welday, Oakwood’s CFO, said O’Keefe & Associates, a Bloomfield Hills- Foundation’s Kidney a national the four-hospital system has based consulting firm, said Early Evaluation increases study. averaged price increases of health care delivery organiza- McCullough Program. Ann Ar- less than 3 percent for com- tions in Detroit are facing a McCullough, a member of KEEP’s year over bor-based mercial payers the past few double whammy of rising steering committee for the past decade, Thomson years. costs and declining reim- will oversee the program that offers free year. Reuters Thomson Reuters did not bursement. screenings in cities around the country to ” found in a track hospital prices in Michi- “Most providers are looking anyone at risk for kidney disease — Nick Vitale, new report gan, but the hospital system at opportunities now for ac- people with high blood pressure, diabetes William Beaumont Hospitals that hospi- CFOs said the primary reason quisition, merger or sale,” or a family history of kidney disease. tal prices private-pay, non-governmen- Boudreau said. “We will start McCullough plans to include nationally rose 8.2 percent for the 12- tal price increases have been to see some activity in the Welday screening of special populations and to month period ending June 30 com- lower in metropolitan Detroit first quarter of 2011.” link KEEP with national databases such pared with a 5.5 percent increase in compared with national averages is Boudreau said hospitals that im- as the Centers for Medicaid and physician prices and a 3.4 percent in- that Blue Cross Blue Shield of Michigan prove quality and reduce costs signifi- Medicare Services to allow for more crease in drug prices. pays lower rates than other insurers cantly will grow and expand market research on kidney disease and overall The study looked at prices that self- because of its dominant market share. share. Those that do not will become care. He also plans to develop new takeover targets, he said. methods for blood and urine testing. “There is a lot of waste and (ineffi- Alan Sugar, M.D., associate ciency) at hospitals that they are just chairman and professor of HOSPITAL MARGINS DIVERGE See Hospitals, Page 10 ophthalmology and visual sciences at U.S. hospitals saw revenue and margins climb in 2009, the University of Michigan, has received while Michigan hospital margins dropped to a five-year low: 6.9% the Paton Society Award from the Eye Revenue: Bank Association of America. $626.3B The award is the organization’s highest 6.0% = U.S. honor for corneal physicians, presented 7.2% annually to an ophthalmologist in Revenue: Revenue: $587.1B recognition of outstanding contributions 5.3% $23.4B = Michigan to the Eye Bank Association of America’s Revenue: 5.0% development. $544.7B Revenue: Lavoisier Cardozo, M.D., professor $690.5B of internal medicine for the Wayne State University School of Medicine, has been 5.2% elected a fellow of the Royal College of Revenue: 4.9% Physicians of Edinburgh. $19.8B Revenue: Cardozo, chief of the division of $21.8B geriatric medicine, was the only American in the class of 27 fellows elected this 2.6% year. Election recognizes physicians who Revenue: have achieved exceptional distinction in $643.5B their profession through clinical, educational, research or other outstanding service to society. Four local physicians were honored by the Michigan State Medical Society Foundation with the organization’s Community Service Awards: Naresh Gunaratnam, M.D., a Washtenaw County gastroenterologist and clinical research 0.8% scholar; Thomas Flake Jr., M.D., a Wayne Revenue: $23.6B County surgeon; Sachinder Hans, M.D., 0 chief of vascular surgery at St. John -0.3% Macomb-Oakland Hospital; and Revenue: $24.3B Peggyann Nowak, M.D., an Oakland County otolaryngologist and head and 2005 2006 2007 2008 2009 neck surgeon. Sources: National figures are AHA hospital statistics as compiled by Modern Healthcare; state figures from Michigan Health & Hospitals Association, AHA hospital statistics 20110110-NEWS--0010-NAT-CCI-CD_-- 1/6/2011 4:14 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS January 10, 2011 Health Care Extra Hospitals: Reimbursement declines St. Joseph Mercy gets ■ From Page 9 touching on now,” he said. “Health tient costs under control by utiliza- aging costs and lowering utilization care reform is moving from a pay- tion management and better con- in the outpatient area,” he said. for-service model to a lower-cost tracting,” Pickens said. “As hospi- In the past three years, Vitale OK for patient tower model based on reimbursement for tals have steadily moved business said, Beaumont’s hospital expense achieving quality measures.” since 2005 to higher-paying outpa- per adjusted inpatient stay has BY SHAWN WRIGHT On the eighth floor, 28,050 Reflecting lower price increases tient setting, it is more difficult for dropped by nearly 10 percent. In SPECIAL TO square feet will be developed the past several years, total profit payers to restrict those outpatient 2009, patient costs dropped 2.8 per- CRAIN’S DETROIT BUSINESS for lease by Select Specialty Hos- margins are much lower in Michi- costs.” cent, and this year they dropped pital, which currently leases gan than they are nationally. But outpatient reimbursement even more to 4.9 percent, he said. St. Joseph Mercy Oakland in space in the main hospital. For example, while total margins rates in Southeast Michigan are “We really have taken costs out Pontiac received state ap- Funding is coming, in part, jumped to 5 percent in 2009 from 2.6 “lower than cost for most hospitals of the system,” he said. proval last month to construct from internal operations, said percent in 2008 nationally, Michi- from the largest payers (Medicare, After several years of rising inpa- a nearly $126 million patient Jack Weiner, CEO of St. Joseph gan hospital margins dropped to a Medicaid, and Blue Cross),” said tient expenses per admission, Oak- care tower. Mercy Oakland. Other sources five-year low in 2009 to 0.3 percent, Peter Schonfeld, MHA’s senior wood has done a better job manag- The eight-story, 301,740- of funding will include issuing according to the latest data from the vice president, policy and data ser- ing cost increases the past two square-foot tower will include bonds, he said. American Hospital Association and the vices. years, Welday said. a mechanical penthouse roof A parking structure will be Michigan Health & Hospitals Associa- Schonfeld said Michigan hospi- “We have seen modest improve- and full basement. It will be on demolished to make room for tion. tals have been moving more aggres- ments in cost per discharge and in the southeast corner of the hos- the tower. “The margins are lower here be- sively to treat patients in outpatient productivity,” he said. pital’s campus at 44405 Wood- The 42,000-square-foot Harold cause the thing working against settings than most parts of the Connelly said Henry Ford’s cost ward Ave. E. Fox Center building, con- hospitals is they are providing a lot country. accounting methodology shows The first floor will connect to structed in 1980, will be demol- more care for uninsured with the “It hurts Michigan hospitals (fi- that patient costs per adjusted ad- the rest of the hospital build- ished to accommodate parking. unemployment level high,” said nancially) for doing the right thing mission is about 1 percent lower in ings and provide guest services, The building primarily houses Boudreau. when more patients are treated in 2010 than the year before. retail stores and a central lobby outpatient services that will Overall, health care prices rose outpatient settings,” Schonfeld “This shows that productivity is with registration services for move to a medical office build- 6.3 percent nationally for the 12- said. improving,” said Connelly, adding incoming patients and family ing. month period ending June 30, down At Beaumont, Vitale said price that cost trends have been flat at members. There also will be ac- Parking will be improved as X from 7.3 percent in 2009, said Thom- increases for inpatient and outpa- Henry Ford the past several years. cess to a new exterior court- a result of the project. New sur- son Reuters. tient services have been the same “We are trying to provide care at yard. face parking will be developed Nationally in 2010, outpatient or a little lower than the past sever- a cost that helps keep companies in Floors two through seven next to the new tower. prices jumped 9.3 percent, com- al years. Southeast Michigan as competitive will house 136 private rooms To achieve the new surface pared with a 7 percent increase for “The reason insurers pay more as they can, Connelly said. “We and provide room for expan- parking, Fulton Street will be inpatient hospital services, said for outpatient is the utilization has have done this and the (expense in- sion. eliminated and a ring road cre- Gary Pickens, chief research offi- gone up with more MRIs (magnetic creases) are less than you see else- The first four floors and base- ated around the perimeter of cer with Thomson Reuters’ Center resonance imaging) and CTs (com- where.” ment of the main hospital will the campus to serve the emer- for Healthcare Analytics in Chicago. puted tomography),” Vitale said. Jay Greene: (313) 446-0325, be renovated to connect to the gency department, trucks and “Commercial payers have inpa- “We are doing a better job at man- [email protected] tower. deliveries from vendors.

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A Member of Ascension Health 20110110-NEWS--0011-NAT-CCI-CD_-- 1/6/2011 4:07 PM Page 1

January 10, 2011 CRAIN’S DETROIT BUSINESS Page 11 Health Care Extra Reducing returns: Hospitals target costly readmissions, ER patient flow

BY JAY GREENE just starting.” CRAIN’S DETROIT BUSINESS Patel said making sure patients have appointments with their pri- A third study is under way in mary care doctors before they are Southeast Michigan with the goal discharged is a simple yet effec- to reduce unnecessary hospital tive way to help reduce readmis- readmissions, a problem that costs sion rates. the Medicare program alone an es- In the emergency department timated $17 billion each year. project, reducing the time it takes The study also is seeking to im- to care for emergency patients will prove patient flow in the emergency Anthony Patel save money and let the hospital department and throughout the hos- improve inpatient care and care pital, according to the Greater Detroit Last year, two other hospital for patients in observation units, Area Health Council, which is coordi- readmission projects began, in- Patel said. nating the project under a grant by volving more than 40 hospitals and “We are poised to see 100,000 vis- the Robert Wood Johnson Foundation. 15 physician organizations. its this year, up 15,000 to 20,000 The three hospitals participat- One project headed up by Blue from last year,” Patel said. “With ing in the latest study — Mt. Cross Blue Shield of Michigan, the Uni- the change in the economy and Clemens Regional Medical Center, versity of Michigan and the Society of people not going to their doctor for Pontiac-based St. Joseph Mercy Oak- Hospital Medicine will try to reduce routine care, they are filling the land and Detroit Medical Center’s by 30 percent unnecessary admis- emergency department.” Sinai-Grace Hospital in Detroit — sions within 30 days of discharge. Patel said the patients coming are part of a larger project that in- In 2009, the Michigan Health & into ERs are sicker, as well. cludes 130 hospitals in 17 regions. Hospital Association and Mpro, a Patel said that while doctors see All three hospitals are working Farmington Hills-based quality- ER patients within 29 minutes to improve the efficiency of their improvement organization, began about 95 percent to 98 percent of the emergency departments, while Mt. a three-year readmission reduc- time, “we have to look at other Clemens Regional Medical Center tion project with 13 hospitals in strategies to get them timely care.” is working to reduce readmission Southeast Michigan and 14 others For example, Sinai-Grace con- rates for patients treated for car- statewide. verted an inpatient unit to an ob- diac conditions. At Sinai-Grace, Paru Patel, servation area where patients can “There is a lot that is right about M.D., director of clinical effective- stay for up to 23 hours without be- our local health care system, in- ness, said the DMC-affiliated hos- ing formally admitted. cluding good doctors, nurses, hospi- pital is participating in the Mpro “We need to improve triaging to tals and employers who care about hospital readmission study and help assess patients more quickly people having access to safe, high- the GDAHC readmission and to determine whether they should quality health care,” said Vernice emergency department study. be admitted or put into observa- Davis Anthony, CEO of GDAHC. Patel said Sinai-Grace has made tion,” Patel said. “But … there are gaps in the qual- many improvements in post- Jay Greene: (313) 446-0325, ity of care that people receive,” An- hospital care that have resulted in [email protected] thony said. “We can help close those months when no heart failure pa- gaps so every patient receives excel- tients have been readmitted. lent care every time.” “We have been working with pa- National data show that nearly tients and payers, long-term care 20 percent of all Medicare patients providers and physician offices on A BRIGHTER FUTURE are readmitted to hospitals within the outpatient side and have start- 30 days and 33 percent are readmit- ed to see readmission rates de- FOR COMMERCIAL FACILITIES ted within 90 days. cline,” Patel said. “We really are In its sixth year, the Nichols Green Facilities Conference will offer a full day of education on YOU FIRST Health system projects OK’d, sought IHDWXUHVEHQHßWVDQGFRVWPDQDJHPHQWRIJUHHQ The following are selected fil- Save the Date: March 30, 2011 EXLOGLQJVDVZHOODVGLVSOD\SURGXFWVIRUJUHHQ ings and decisions from Dec. 1-31. CON Roundup FOHDQLQJDQGIDFLOLWLHVPDLQWHQDQFH3DUWLFLSDQWV 8QLYHUVLW\RI0LFKLJDQ'HDUERUQ FDQH[SHFWNH\QRWHVSHDNHUVDQGGLVFXVVLRQVRQD Filings approved: University of Michigan Health Sys- Fairlane Center St. Joseph Mercy Oakland, Pon- tem, Ann Arbor, addition of three YDULHW\RIZRUNVKRSWRSLFVLQFOXGLQJFDVHVWXGLHV tiac. New patient-care tower. (See operating rooms to C.S. Mott Chil- RI/(('EXLOGLQJVDQGVWUDWHJLHVIRUPDLQWDLQLQJ story, Page 10.) dren’s Hospital, Ann Arbor, and one Senior Community at Providence operating room to the Kellogg Eye DKLJKSHUIRUPDQFHKHDOWK\IDFLOLW\ Park, Novi, addition of 15 nursing Center, Ann Arbor, $1.6 million. home beds, $2.4 million. University of Michigan Health Senior Community of Auburn System, Ann Arbor, initiate one Hills, Auburn Hills, addition of 20 fixed Intra-Operative MRI scan- nursing home beds, $2.3 million. ner, $5.6 million. Children’s Hospital of Michigan Stilson Specialty Center-Clinton Town- Letters of intent: ship, Clinton Township, acquire Crittenton Hospital Medical Cen- fixed CT scanner and MRI host site on existing mobile MRI network, ter, Rochester Hills, construction $7 million. of a six-floor patient tower and re- St. Joseph Mercy Oakland Imag- placement of patient beds, $65 mil- ing Center, West Bloomfield Town- lion. The hospital launched a ship, acquire CT scanner operat- $20 million capital campaign in ing at 2300 Haggerty Road, West November to build the tower, Bloomfield Township, $1.9 million. which it hopes to open by 2014. Affiliated Diagnostic of Oakland Michigan Head and Spine Insti- LLC, Southfield, initiate mobile tute, Novi, initiate an MRI host site MRI host site, $2.7 million. at 29275 Northwestern Highway, Southfield, $5.5 million. Applications: Oakwood Health Center–South- 1LFKROV&RUSRUDWH2IßFHV/(('(%*ROG Botsford Hospital, Farmington gate, Southgate, initiate an MRI Hills, initiate a fixed MRI service host site on a proposed MRI net- and construct a one-story, 3,500- work, $4.5 million. 1LFKROVZZZHQLFKROVFRP square-foot addition, $4.9 million. — Shawn Wright 20110110-NEWS--0012-NAT-CCI-CD_-- 1/6/2011 4:12 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 10, 2011

THE MILLER LAW FIRM PEOPLE a professional corporation CONSULTING strategy, Corbett Accel Healthcare Group, Chicago. Stewart Tan to vice president of infor- IN THE SPOTLIGHT mation technology security, Accretive Auburn Hills-based Easter Seals NONPROFITS Solutions Inc., Troy, from security Michigan, which has provided and compliance strategist, Symantec services for people with mental John Batchik, vice president of quali- Corp., Bloomfield Hills. illness, developmental disabilities ty, Freudenberg-NOK, Plymouth, or other special needs since elected chairman of the board, Auto- HOSPITALITY 1920, has named Brent Wirth motive Industry Action Group, South- Joyce Flowers to president and field; also David Kneisler, vice presi- senior sales exec- CEO. dent of global quality, Dana Holding utive, Detroit Mar- Wirth, 39, had Corp., Maumee, Ohio, elected vice riott Renaissance been COO. chairman of the board. Center, Detroit, He succeeds from national di- John SUPPLIERS Our firm specializes in litigation: rector of sales, Grand Rapids Cocciolone, who retired Pierre Blanchard to senior director of • Complex Commercial and Business Convention & Vis- motors and electronics product line, In- itors Bureau, De- last year. teva Products LLC, Troy, from senior di- • Shareholder and Partnership troit. Wirth earned a rector of manufacturing engineering, • Automotive Supplier Kristen Yaquinto bachelor’s Flowers body systems, Arvin Meritor Inc., De- • Class Actions to sales manager, Wirth degree in Detroit Marriott Troy, Troy, from sales psychology at Michigan State troit; also, Bill Hanna to vice president • Employment coordinator. University and a master’s degree and executive director of closure systems, from chief engineer of closure sys- • Family Law and Probate Litigation in social work from Wayne State LAW University. tems; Stefan Land to vice president and (248) 841-2200 executive director of roof systems, from 950 West University Drive, Suite 300 Frank Henke to partner, Warner Nor- vice president and general manager, millerlawpc.com Rochester, Michigan 48307 cross & Judd LLP, Southfield, from se- MARKETING nior counsel; also, Jay Kennedy to Laura McGowan to senior vice presi- body systems, ArvinMeritor Inc., Troy; partner, from senior counsel; and Jen- dent of strategic planning, W.B. Don- and Pat Stewart to vice president and nifer Watkins to partner, from associ- er & Co., Southfield, from senior di- executive director of interior systems, ate. rector of integrated marketing from chief engineer.

BUSINESS DIARY ACQUISITIONS launching Clek’s direct-to-consumer York, N.Y., have launched Children’s e-commerce platform in the United Health Project of Detroit, a health care Rockbridge Growth Equity LLC, Livo- States. program with a mobile medical clinic nia, acquired a stake in One on One Marketing, American Fork, Utah, a International Bancard, Clawson, has that will provide comprehensive provider of sales leads to online edu- retained Howard & Howard Attorneys health care services to medically un- cational institutions. PLLC, Royal Oak, as its lead law firm. derserved children at schools and in community locations. Website: , Troy, has acquired Fisher/Unitech www.henryford.com. CADVenture, Mentor, Ohio, a Solid- Works 3D CAD software reseller. EXPANSIONS Detroit Edison Co., Detroit, has opened a second-generation solar en- Adeona Pharmaceuticals Inc., Ann Rave Computer Association Inc., Ster- ergy facility in Scio Township under Arbor, a developer of medicines for ling Heights, has added an office at the company’s SolarCurrents pro- central nervous system diseases, ac- 5534 Upton Ave., Minneapolis, Minn. quired access to clinical data support- Website: www.rave.com. gram. Website: www.dteenergy.com. ing a zinc-based therapy for the pre- The Michigan Business and Profes- vention of infections in the elderly MERGERS sional Association, Warren, and the from Dr. Ananda Prasad, Detroit. Michigan Food and Beverage Associa- Waxenberg and Associates PC, South- tion, Warren, now offer HealthHam- field, certified public accountants, an- mer and TrendMender, programs that CONTRACTS nounced a merger with the firm of will promote employee wellness, by Thomson Reuters, Ann Arbor, has Klein and Hillson PC, West Bloomfield Wellco Corp., Royal Oak. Telephone: been selected by Rush-Copley Medical Township, to form a new firm: Waxen- (888) 277-6464. Center, Aurora, Ill., to provide its berg & Klein PLLC, Southfield. Pharmacy Xpert system to more-effec- Ally Financial, Detroit, now offers a na- tively manage medication therapy MOVES tional program for wholesale financ- and improve pharmacist efficiency. ing of RV dealer inventory, expanding Giffin Inc., a designer and fabricator of on its preferred provider relationship KellyOCG, Troy, a subsidiary of Kelly industrial processes for surface fin- Services Inc., Troy, won a contract with Thor Industries, Jackson Center, ishing, purchased an Auburn Hills Ohio. Website: www.ally.com. with Rio Tinto PLC, London, a mining building from Thyssen-Krupp Automo- company, to help manage contract tive Systems and relocated its head- STARTUPS workers in Australia. quarters and manufacturing opera- Altair Engineering Inc., Troy, has se- tions from Farmington Hills to 1900 New Life Natural Health Center, a lected Parker Hannifin, Cleveland, Brown Road, Auburn Hills. provider of computerized noninvasive Ohio, to provide its series hydraulic allergy testing and natural treatment, hybrid drive system for Altair’s BUSo- NEW PRODUCTS at 725 S. Adams Road, Suite 185, Birm- lutions project. ingham. Telephone: (248) 792-2229. BorgWarner Inc., Auburn Hills, has re- Henry Ford Village, Dearborn, a senior Website: www.newlifeallergy.com. leased a new line of turbochargers for living community, hired Life Care Ser- Real Ryder Revolution, an indoor gas and diesel engines. Website: vices LLC, Des Moines, Iowa, to man- cycling studio, at 555 S. Old Woodward www.borgwarner.com. age the community. Ave., Birmingham. Telephone: Mango Languages, Farmington Hills, Tera Networks, a division of (248) 737-6450. Website: www.real has introduced Mango Passport, a DataFactZ, Northville, has been con- ryderrevolution.com. language learning product designed to tracted by Challangoe & Jabro CPAs Glovinsky Center for the Child and teach international travelers to PC, Madison Heights, to provide IT Family, a multidisciplinary center spe- effectively communicate in a coun- services. cializing in developmental, learning, try’s native language. Website: speech and language, sensory, mood, Tooles Contracting Group LLC, De- www.mangolanguages.com. troit, and Clark Construction Co., and autism spectrum disorders, at , Livo- Southfield, have been selected by De- TRW Automotive Holdings Corp. 7001 Orchard Lake Road, Suite 230A, nia, has launched its next-generation troit Public Schools as design builders West Bloomfield Township. Tele- seatbelt pretensioner, the SPR4, to of- for construction of the new Finney phone: (248) 538-9070. Website: fer weight and packaging advantages Crockett High School. Albert Kahn As- www.glovinskycenter.com. to its customers worldwide. Also, sociates, Detroit, Elton Anderson As- TRW is introducing its range of modu- sociates LLC, Detroit, and Giffels Web- lar airbag kits designed to fit multiple DIARY GUIDELINES ster Engineering Inc., Detroit, will vehicles that can be scaled and adjust- provide architectural/engineering Send news releases for Business services for the project. ed to meet global vehicle platforms. Website: www.trw.com. Diary to Departments, Crain’s General Dynamics Land Systems, Ster- Detroit Business, 1155 Gratiot ling Heights, has been awarded three NEW SERVICES Ave., Detroit, MI 48207-2997 or contracts by the U.S. Army TACOM Life send e-mail to cdbdepartments@ Cycle Management Command, War- Stout Systems, Ann Arbor, has updat- crain.com. Use any Business Diary ren, to support performance specifica- ed its free industry event information item as a model for your release, tion changes to and fielding of the service for the Detroit-area IT commu- and look for the appropriate Stryker vehicle. nity by posting an IT event and user category. Without complete Niche Retail LLC, Sylvan Lake, en- group calendar on its website: information, your item will not run. tered into an agreement with Clek www.stoutsystems.com. Photos are welcome, but we cannot Inc., Toronto, Canada, a manufacturer Henry Ford Health System, Detroit, guarantee they will be used. of booster car seats, to assist with and Children’s Health Fund, New DBpageAD.qxp 1/7/2011 10:05 AM Page 1

For more information or to reserve space call Marla Downs at 313.446.6032 or e-mail [email protected] 2011 Targeted Advertising Opportunities

HEALTH CARE OPPORTUNITIES ISSUE DATE DEADLINE SMALL BUSINESS OPPORTUNITIES ISSUE DATE DEADLINE Focus: Assisted Living LIST: Senior Living Facilities FEB 7 JAN 27 Second Stage: Growing small business FEB 21 FEB 10 LIST: Health Care Extra MAR 14 MAR 3 Largest 1st Quarter SBA Lenders Health Care Extra APR 11 MAR 31 Second Stage: Growing small business: Technology MAR 21 MAR 10 Health Care Extra; LIST: Largest Physician Groups MAY 9 APR 28 Second Stage: Growing small business: APR 18 APR 7 Michigan Celebrates Small Business Health Care Extra JUN 13 JUN 2 Second Stage: Growing small business: Going Global MAY 16 MAY 5 Health Care Extra JUL 11 JUN 30 Second Stage: Growing small business JUN 20 JUN 9 Health Care Extra AUG 8 JUL 28 Focus: Franchises LIST: Largest Franchises Health Care Extra: Health Care Heroes SEP 12 SEP 1 Second Stage: Growing small business: JUL 18 JUL 7 Health Care Extra; LIST: Largest Group Health Providers OCT 10 SEP 29 How to boost growth without flaming out LIST: Largest 2nd Quarter SBA Lenders Health Care Extra; NOV 14 NOV 3 STATEWIDE LIST: Largest Hospitals/Health Systems Second Stage: Growing small business AUG 15 AUG 4 LIST: Largest 3rd Quarter SBA Lenders Health Care Extra DEC 12 DEC 1 Second Stage: Growing small business SEP 19 SEP 8 LAW OPPORTUNITIES Second Stage: Growing small business OCT 17 OCT 6 Focus: Innovations: Top Verdicts and Settlements FEB 21 FEB 10 Second Stage: Growing small business: Salute to Entrepreneurs NOV 21 NOV 10 Focus: Innovations: Patents and Trademarks MAR 7 FEB 24 LIST: Largest Law Firms LIST: Largest SBA Lenders for Fiscal 2010 NOV 28 NOV 17 Focus: General/In-house Counsel Awards APR 11 MAR 31 Second Stage: Growing Small Business (Electronic edition) DEC 19 DEC 8 STATEWIDE LIST: Law Firms JOBS/ECONOMY/EDUCATION OPPORTUNITIES Focus: Law: Patent Law MAY 16 MAY 5 LIST: Largest Intellectual Property Law Firms Business Education FEB 28 FEB 17 Focus: Law: Women in Law AUG 1 JUL 21 20 in their 20s MAY 2 APR 21 Best Lawyers DEC 5 NOV 24 Business Education: Innovations: Advanced Manufacturing JUN 6 MAY 26 Mackinac Edition (EARLY CLOSE) MAY 12 INNOVATION/SUSTAINABLITY OPPORTUNITIES Business Education: Online Programs AUG 15 AUG 4 Focus: Innovations: Sustainability JAN 24 JAN 13 40 under 40: 20th Anniversary OCT 3 SEP 22 Focus: Innovations; Patents and Trademarks MAR 7 FEB 24 Innovations: University Research OCT 31 OCT 20 LISTS: Largest Biotech Firms; Largest Law Firms Focus: The Economy: Industries and Ideas to Watch in 2012 NOV 7 OCT 27 Focus: Innovations: Energy JUL 18 JUL 7 LIST: Largest Detroit Employers LISTS: Fastest-Growing Companies; Largest 2nd Quarter SBA Lenders SPECIAL INTEREST OPPORTUNITIES Focus: Innovations: University Research OCT 31 OCT 20 Crain’s Michigan Business Inaugural Issue FEB 14 FEB 3 LIST: Largest Automotive Aftermarket Companies STATEWIDE LISTS: Cultural Institutions Focus: Innovations: Suppliers and the Next NOV 21 NOV 10 Crain’s Michigan Business APR 11 MAR 31 Generation of Vehicles STATEWIDE LISTS: Law Firms, Top LEED-certified buildings LIST: Largest Automotive Suppliers Crain’s Michigan Business MAR 14 MAR 3 FINANCE OPPORTUNITIES LISTS: Largest Employers Biggest Deals of 2010 JAN 31 JAN 20 Crain’s Michigan Business MAY 9 APR 28 LIST: Biggest Deals of 2010 STATEWIDE LIST: Defense Contractors M&A Awards (EVENT: March 10) FEB 28 FEB. 17 Focus: Defense Industry MAY 30 MAY 19 LIST: Largest Accounting Firms LISTS: Largest Engineering Companies Finance MAR 28 MAR 17 Crain’s Michigan Business JUN 13 JUN 2 LIST: Largest Auto Dealers STATEWIDE LIST: Largest Banks Finance APR 25 APR 14 Crain’s Michigan Business JUL 11 JUN 30 CFO Awards (EVENT: June 16) MAY 23 MAY 12 LIST: Largest Logistics Companies STATEWIDE LIST: Largest Banks JUN 13 JUN 2 STATEWIDE LIST: Top paid CEOs Executive Compensation JUN 27 JUN 16 LIST: Largest Office Furniture Dealers AUG 1 JUL 21 LIST: Top Compensation for CEOs and non-CEOs; Crain’s Michigan Business AUG 8 JUL 28 Publicly traded companies LIST: Largest Wayne County Employers Banks JUL 25 JULY 14 STATEWIDE LIST: Largest Private Companies LIST: Largest Banks and Thrifts: Largest Credit Unions Focus: Workforce Development AUG 29 AUG 18 Finance LIST: Highest-Paid Nonprofit Executive AUG 22 AUG 11 LISTS: Largest Architects; Largest IT Employers Wealth Management LIST: Largest Money Managers SEP 26 SEP 15 Cool Places to Work SEP 5 AUG 25 LISTS: Largest Women-Owned Businesses Estate Planning and Philanthropy OCT 24 OCT 13 LIST: Largest Foundations; Largest Nonprofits; Largest Crain’s Michigan Business SEP 12 SEPT. 1 Capital Campaigns STATEWIDE LISTS: Largest Public Companies Finance: Best Managed Nonprofits NOV 28 NOV 17 Crain’s Michigan Business OCT 10 SEP 29 LIST: Largest SBA Lenders for Fiscal 2010 STATEWIDE LIST: Largest Manufacturers REAL ESTATE OPPORTUNITIES The Philanthropy Giving Guide OCT 24 OCT 13 Crain’s Focus: Real Estate MAR 21 MAR 10 Michigan Business NOV 14 NOV 3 LIST: LIST: Largest General Contractors Largest Metro Detroit Employers Crain’s Focus: Real Estate JUL 4 JUN 23 Michigan Business: Year in Review DEC 12 DEC 1 STATEWIDE LIST: LISTS: Largest Residential Brokers; Largest Nonprofits Largest Nonresidential Property Managers BOOK OF LISTS DEC 26 OCT 28* Focus: Real Estate OCT 24 OCT 13 20110110-NEWS--0014-NAT-CCI-CD_-- 1/6/2011 4:13 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 10, 2011

MARKET PLACE CALENDAR

ANNOUNCEMENTS & BUSINESS & gy Co. Transforming the Auto Indus- TUESDAY try to the Destination of Choice for COMING EVENTS SERVICES INVESTMENTS JAN. 11 High-Talent Women. With: Cathy State of the Auto Industry. Noon-1:30 Benko, vice chairman and chief talent p.m. Jan. 18. Chartered Financial An- LEGAL SERVICES FRANCHISE OPPORTUNITIES Association for Corporate Growth De- officer, Deloitte; Mary Sue Coleman, alyst Society of Detroit. With: David troit Chapter Annual Automotive Out- president, University of Michigan; Cole, chairman, Center for Automo- Are you satisfied with your look Meeting. 7-9 a.m. With: David An- Antone, Casagrande & Adwers, P.C. Barb Samardzich, vice president, pow- tive Research. Detroit Athletic Club. investments and plans for drea, Original Equipment Suppliers $20 members, $30 nonmembers. Con- retirement? ertrain engineering, Ford Motor Co.; AV-rated Immigration Law Firm Association; others. Glen Oaks Golf tact: (586) 746-1262; e-mail: info@cfade others. 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Detroit Insti- Call Us For Personalized Franchise is a unique, results-proven proprietary p.m. With: Dan Hesse, CEO, Sprint tute of Arts. $29 Inforum members, $39 system that provides a Complete Patient Support THURSDAY Nextel. Detroit Marriott Renaissance Service: (313) 446-6068 Center for Dental Offices. nonmembers, includes light hors Center. $45 DEC members, $55 guests, d’oeuvres and cash bar. Corporate In- FAX: (313) 446-1757 To learn more, visit: JAN. 13 www.Aaronb.PESplus.info $75 nonmembers. Contact: (313) 963- vestor free tickets available. Contact: E-MAIL: [email protected] Inforum’s Annual Auto Show Break- 8547; e-mail: [email protected]; (877) 633-3500; website: www.inforum INTERNET: fast. 7:30-9:30 a.m. Deloitte; DTE Ener- website: www.econclub.org. michigan.org. www.crainsdetroit.com/section/classifieds Call or email today for information See on a custom advertising plan! Crainsdetroit.com/Section/Classifieds [email protected] for more classified advertisements 313.446.6068 REAL ESTATE CAREER MOVES AUCTIONS INDUSTRIAL PROPERTY INDUSTRIAL PROPERTY PUBLIC AUCTION Troy -- Sale or Lease AVAILABLE NOW REAL ESTATE NON-PROFIT St. Regis Hotel, Detroit 67,700 Sq. Ft. Mfg. or Whse. Primary Power • 3 Truckwells 4,000 to 100,000 sq. ft. AUCTION DATE: JANUARY 13, 2011 Experienced Design/Build/Real Estate Board of Directors $1.95/Sq. Ft. Lease Rate Also 10,000 & 25,000 sq. ft. Sales Person Needed Time: 10:00 a.m., Eastern Standard Time Primarily Commission based position with full benefits Possible Seller Financing Please e-mail resume to [email protected] Bradford Academy, a public school of Location: 400 Galleria Officecentre, Suite 400, Free Standing Bldgs w/truckwells. choice (charter school), is seeking Broker/Owner (248) 705-0835 TECHNICAL Southfield, Michigan 48034 interested applicants for appointment on 1 Mile from Metro Airport Property to be auctioned: the Board of Directors. Hotel and all its Personal Property Wanted Chemist The current Board of Directors of Auction Bid Requirement: Metalwork Manufacturing Facility REA CONSTRUCTION Bradford Academy will recommend new The court orders that a deposit, in immediately Lansing, MI: Plan experimt’l research proj available funds, shall be delivered to the Second Requirements (all or part): Fabrication of metal (734) 946-8730 for synthesis of nanostructured mat & Board Members to it’s authorizer, Bay Successor Receiver, in the amount of $50,000.00 parts by CNC Machining, Metal Sheet Processing nanocomposites, process’g of polymer Mills Community College, which has the (the "Bidder’s Deposit"), at least one (1) business (Laser/Water jet cutting, banding, punching), Also Heavy Industrial comp mat & structures, use nanostructured ultimate authority to appoint new day before the auction date. If remitted in the form Welding (MIG/TIG), Painting mat to enhance efficiency of bioethanol of a wire transfer, any Bidder’s Deposit which shall Engineering capabilities and QA certified system. Land Available production from ag residues & devel of bio- Members. Applicants wishing to be be remitted in the form of a cashier’s check may be inspired nanostructured adhesives. recommended should know that the Preferred Property Size: tendered at any time prior to the commencement Indoor: 25,000 sq.ft. Outdoor: 25,000 sq.ft. Research chem, bio, physical, mech and of the auction. All Bidder’s Deposits shall be fully www.reaconstruction.net mircroscopic characteristics of Bradford Board of Directors would prefer applicants with either a legal background refundable, other than that which is received from Contact: Beth at Butzel Long Law Firm materials/systems. Train others. Process, a Successful Bidder. (248) 258-3870 analyze and interpret lab data and prepare or a strong community relations and E-Mail: [email protected] reports. Req’s MS in Chem or comp of all marketing background to round out the Auction to be conducted by: req’s for same. Exp in experimental lab Second Successor Receiver Full Discretion and Confidentiality Guaranteed Crain’s Classifieds Gets Results research in chem proc’g & eval of existing skill sets on the Board. Barry Lefkowitz nanomaterials & app of quantum mechanics Resumes must be received no later Managing Director, BBK Ltd. & thermodynamics for devel & AUCTIONS characterization of nanostructured mat & than 3pm January 19th. For additional information, contact the Second systs. Exp in chem physics, nanotech & Mail to: Successor Receiver, Barry Lefkowitz, at associated comp-based sci instrumentation. 248-603-8325 or [email protected] SEALED BID LIQUIDATION Exp to incl devel & characterization of composite & nanocomposite mat & systs & Bradford Academy nanostructured surfaces for improved 24218 Garner By Order of Court Appointed Receiver adhesion. Exp can be acq’d concurrently in Southfield, MI 48033 ANNOUNCEMENTS GREAT INVESTMENT OPPORTUNITY employ or edu. Two Industrial/Warehouse Buildings 325,640 SqFt Total on 25+ Acres Property Owners Mail resumes to Parviz Soroushian, Cross Docking Ability Ph.D., President, Technova Corp., 1926 REO Advisors Turner St., Lansing, MI 48906. EOE Crain’s Classifieds Gets Results Nationally trained Commercial Real Estate veteran Sealed Bids DUE Thursday, February 3, 2011 @ 5:00PM with over 30 years of experience available on an "as needed" basis to provide: SALES Due Diligence Reviews: inspect, evaluate & report Property Management: Classified Sales Representative oversight & monitoring AutoWeek (AW), a Crain Communications Inc publication, is the consumer magazine that gives Budgets: car enthusiasts The Inside Track. AW delivers the latest news, truck loads of useful information prepare/implement/monitor and sparkling insights on new cars and trucks, vintage vehicles, motorsports, automotive trends and the people who make it all happen - - everything about "the automotive lifestyle." Leases: review/abstract/prepare escalation OFFERING #1 OFFERING #2 Job Responsibilities: Construction: Location: 1212 E. Alexis Rd., Location: 1212 E. Alexis Rd., • Maintain and up-sell existing accounts (Exotic Dealers, etc). prepare RFP, obtain bids, oversee • Prospect new business via "cold calling" Toledo, OH 43612 Toledo, OH 43612 • Sell various special sections • Provide back up for all incoming calls Mike Irwin -- 313-770-3224 211,400 SqFt Industrial/Warehouse Adjoined to Offering #1 • Work with Accounting Department in resolving disputes MI_Commercial Real Estate LLC www.mi-commercial-llc.com 12.8+/- Acres 114,240 SqFt Industrial/Warehouse • Maintain ACT Database • Sell advertising on AutoWeek.com and providing customer support or any maintenance Built 1989 Cross Docks Truck & Trailer Storage necessary. 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Box 431046 Locker Room Truck/Trailer Storage Area Security Fencing & Guard House Steel Beam • Looking for a highly motivated, enthusiastic team player to go the "extra mile!" Pontiac, MI 48343 Block Exterior Steel Siding Concrete Floors Great Location Multi-Use Buildings [email protected] Crain Communications Inc is one of the largest privately-owned business publishers in the U.S. In Co-op w/CB Richard Ellis/Reichle Klein with over 30 leading business, trade and consumer titles in North America and Europe. As an authoritative source of vital news and information to industry leaders and consumers worldwide, Marty Gallagher, SIOR / 419-794-3956 — Jerry Malek, CCIM, SIOR / 419-794-3964 each of the company’s newspapers, magazines and electronic news sites have become required Call Us For Personalized The Skutch Company, Ltd. - Receiver reading in their respective sector of business and consumer market. 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January 10, 2011 CRAIN’S DETROIT BUSINESS Page 15 DMC: Fines could have buried system ■ From Page 3 would be so significant that they board knew of many of the favor- ply for new provider numbers, might not be able to pay the poten- able financial arrangements with which potentially could have led to tial liabilities.” physicians but did not consider higher Medicare payments for Caplan said federal officials them to be problems that could be DMC but also created potential lia- then halted the investigation and considered fraud or kickbacks. bilities for the surviving DMC began discussing the amount of For example, the board member Legacy Board, which is chaired by the fine with DMC. told Crain’s that private physi- Keith Crain, chairman of Crain Although the DMC did not admit cians were offered offices at DMC Communications Inc. and editor-in- wrongdoing, “the $30 million was at what they thought were market chief of Crain’s Detroit Business. not a slap on the wrist in any cir- prices. However, the lease contract To protect the DMC Legacy cumstances,” Caplan said. “It is a terms were sometimes not updated Board’s charitable assets, which substantial amount of money, and to reflect normal price increases. total about $140 million, Vanguard it was as much as the government Mark Kopson, agreed to pay the board about could get from DMC without pre- chairman of the $20 million to cover the liabilities, venting the deal from closing. We health care in- Duggan said. also did not want to see the hospi- dustry group In late August or early Septem- tal (system) close.” with Plunkett ber, the U.S. Centers for Medicare While Caplan declined to de- Cooney in and Medicaid Services informed scribe the range of fines discussed Bloomfield DMC and Vanguard that if they re- with DMC, he said False Claims Hills, said hospi- ceived new provider numbers they Act violations could have tripled tals and physi- would not inherit all of DMC’s the amount. cians have a graduate medical education resi- “Even if we had gone forward tremendous Kopson dency slots. with all barrels blazing and re- challenge in Graduate medical education ceived the maximum amount from complying with Medicare regula- funding is an important source of a court with treble the damages, if tions and anti-kickback laws. revenue for most teaching hospi- DMC had gone out of business “An office lease at fair-market tals, as most resident physicians there would be no gain for the gov- rent can become problematic if it are inexpensive labor. ernment,” Caplan said. continues in place absent a formal, “Complications from the new Some of the improper financial signed renewal,” Kopson said. health reform act effectively re- deals the DMC reported from 2004 “However, unsigned lease required Vanguard to keep DMC’s to 2010 included below-market newals and tickets to medical edu- old provider numbers and past lia- leases with physicians, free adver- cation events are a far cry from the bilities,” said Duggan in the em- tising, marketing and tickets to type of fraudulent conduct that the ployee letter. Provider numbers sporting events and educational government has successfully — are necessary to bill Medicare for seminars. and appropriately services. DMC also discovered — targeted.” Sometime in September, DMC many instances in If you look at Over the past and Vanguard began to scour which it had billed “ several years, the through “years of billings, leases Medicare the U.S. Department of and physician contracts to find any- and Med- Justice has ramped thing that could arguably have vio- icaid from settlement, up antifraud efforts lated any federal regulation or pro- 2007 to in Detroit and other cedure,” Duggan said in the letter. 2010 for the major cities like Once problems were discovered, physician Miami and Los An- Vanguard raised concerns about services $30 million geles. closing, Duggan said. that were In 2010, the Jus- “Vanguard couldn’t close the not prop- really stands tice Department deal on those terms,” he said, erly docu- said fines and other adding: “Vanguard’s ability to pay 800-292-3831 mented. out. It is recoveries from may be 10 times greater than “If you look at the health care-related DMC’s. Vanguard could have been indiantrails.com settlement, the $30 mil- quite high. False Claims Act assessed fines for mistakes DMC lion really stands out. ” cases totaled a made five years ago.” It is quite high,” said Greg Moore, Clark Hill PLC record $2.5 billion. From early November to Dec. 8, Greg Moore, leader of Since the Justice DMC met with the U.S. attorney’s the health care practice group at Department set up a self-disclo- office to discuss the potentially im- Clark Hill PLC in Birmingham. sure protocol in 2008, more than proper billing and financial deal- ONE HU Many of the violations appear to 100 hospitals and physician groups ings and to settle on the fine G ND IN R T E A D be related to efforts by Duggan to have self-reported violations. amount. R Y B E

E A

L R

bring more physician referrals to Of the more than 15 self-reported Under the settlement, Vanguard E S the DMC. settlements in 2010, DMC’s $30 mil- and DMC also have been released C 100 When he was hired in 2004 he in- lion fine was the highest. The sec- from past Medicare liabilities for herited a hospital system that had ond highest was $22 million paid potentially improper billing in a lost $462 million from 1998 to 2003 by St. Joseph Medical Center in Tow- list of “covered conduct,” which and had just received a $50 million son, Md., for allegedly paying kick- includes physician evaluation and bailout from the state of Michigan. backs to a cardiology group for re- management billing codes, Caplan Duggan has said his goal was to ferrals. said. cut costs, improve efficiency and The largest hospital settlement Moore said the DMC settlement quality, and encourage private was $108 million paid by Christ Hos- illustrates a breakdown in the hos- physicians to admit more paying pital in Cincinnati in a whistle- pital system’s fraud compliance patients at DMC. blower case involving alleged program. One of the strategies he em- kickbacks to cardiologists through “All hospitals have compliance ployed was to recruit private a “pay-to-play” scheme. programs, and there is board edu- physicians to DMC’s now 2,500 “Self-disclosures don’t happen cation on all aspects of health care medical staff, which includes that often, but they are happening fraud,” Moore said. “If you are a about 700 academic physicians em- more and more,” Moore said. hospital and you have a referral ployed by Wayne State University “Providers are becoming more and source, you have to be so careful Comfort and School of Medicine. more nervous about the govern- with that relationship that you are In a report obtained by Crain’s, ment’s focus on health care fraud. not doing anything as an induce- DMC’s private physicians helped The tiniest error can cause a lot of ment to get more referrals to the t$IBSUFST Luxury contribute to a steady increase in problems, and you are at the mer- hospital.” operating profits from $2.8 million cy of the government.” In his letter, Duggan said “there t5PVST in 2004 to $42 million in 2008. In a Dec. 30 letter to DMC em- was no suggestion that anyone For example, internists have in- ployees, Duggan outlined the se- from DMC ever intentionally t4IVUUMFT 00 creased admissions from 2004 to quence of events that led DMC into billed anything incorrectly or ever $100 2008 by 20 percent, orthopedic sur- conducting an audit of its paid a doctor to influence referral. t$POWFOUJPO4FSWJDFT SAVE OFF geons by 210 percent and cardiolo- Medicare billing practices and … We’re starting the New Year un- gists by 315 percent, according to physician financial deals. der Vanguard with a clean bill of t$PSQPSBUF&WFOUT DMC. Under the original sales agree- health.” Contact Indian Trails for details. Must use this In interviews, a DMC board ment that was signed in June, Jay Greene: (313) 446-0325, t4DIFEVMFE4FSWJDF promotional code at time of booking: CDB52dec member told Crain’s that the DMC and Vanguard planned to ap- [email protected] 20110110-NEWS--0016-NAT-CCI-CD_-- 1/7/2011 6:23 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 10, 2011 Borders: Signs point to Chapter 11; company needs strategy, too ■ From Page 1 Borders Corporate Affairs Man- named in June as part of taking continue to ship books and will ac- together, the biggest blow to the “Yes,” said Jim McTevia, manager Mary Davis said the compa- the largest ownership stake in the cept interest-bearing debt instead city would be the big hole in the aging partner of Bingham Farms- ny is taking steps to improve liq- company, making the previous of a payment. The move prompted downtown,” Hieftje said. “While it based business consulting firm uidity and restructure the CEO, Mike Edwards, president a statement by competitor Barnes would be disappointing, the down- McTevia & Associates LLC. organization. The company does and CEO of Borders Group sub- & Noble Inc. town market has been hot and I Having seen countless compa- not comment on outside opinions sidiary Borders Inc. “We think the playing field wouldn’t be surprised to see that nies head into bankruptcy court, about Borders, she said. Edwards, however, only had should be even,” according to the retail space snapped up.” McTevia said Borders is doing “We are in discussions with po- been CEO since Ron Marshall left statement. “We expect publishers The Borders headquarters what most do: preserving cash, de- tential lenders for replacement fi- the post in January 2010. to offer the same terms to all other building at 100 Phoenix Drive, laying payments to vendors and nancing and are meeting with cer- Another high-level resignation booksellers, including Barnes & south of I-94 near Briarwood struggling to find financing. tain vendors to discuss financing came in August when CFO Mark Noble and independent book- Mall, is owned by the Farmington “Marshalling cash, conserving arrangements,” she said in an e- Bierley resigned. He was replaced sellers. Hills-based real estate investment cash, that’s what companies that mail. “We are seeking to restruc- by Scott Henry. “We fully expect publishers will trust Agree Realty Trust (NYSE: go into Chapter 11 need in order to ture our finances and are not in a The company’s chief accounting require Borders to pay their bills ADC). have enough cash to stay alive liquidity crisis.” officer, Glen Tomaszewski, was on the same basis upon which all Last week, Agree’s share price while they’re in bankruptcy,” Investors also showed optimism named interim CFO in August other booksellers pay theirs. Any dropped after Janney Capital Mar- McTevia said. “Enough so they Friday morning after a story in then later moved to his current po- changes in publisher terms should kets analyst Andrew DiZio down- don’t become Chapter 7 and liqui- The Wall Street Journal indicated sition. be made available to all.” graded the company’s stock based date.” Borders is meeting with invest- Also in flux has been the board Borders has been seeking a fi- on the 16 leases it has with Bor- He added that Borders might be ment advisers to restructure debt, of directors, with five members re- nancing agreement to consolidate ders. having a hard time finding financ- and not meeting with bankruptcy signing in summer 2009. its debt but has not been able to se- With the stock trading at $26.07 ing because it is such a risk right attorneys. cure new debt, according to multi- per share on Monday, DiZio down- now. ple reports last week. graded the stock from “buy” to The Detroit 3 automakers are Suppliers “neutral” based on the impact that perfect examples of how hard it Mass resignations Borders’ relationship with the speculation of a bankruptcy is hav- can be to find financing when busi- Also crippling Borders is lack of companies that supply books has Ann Arbor impact ing. ness starts to get dire, McTevia executive firepower as the compa- generated a lot of attention since Borders started as the Borders However, DiZio said that the im- said. ny started 2011 with five resigna- the company announced on Dec. 30 Book Shop, which Tom and Louis pact on Agree will be minimal if As things started to tighten, Ford tions. that it is delaying payments to Borders opened in 1971 on State Borders goes into bankruptcy. He Motor Co. picked up enough debt to Thomas Carney, executive vice some suppliers as it seeks to re- Street near the University of Michi- concluded that if Agree lost all of stave off a bankruptcy, while the president, secretary and general structure payments. gan campus. the revenue from Borders leases, former General Motors Corp. and the counsel, resigned on Jan. 2, and D. That news prompted New York- After being purchased by Kmart, the company would still have a former Chrysler LLC were too late Scott Laverty, senior vice presi- based Rowman and Littlefield to stop built into a national company and fair value of $24 per share. and couldn’t get enough money. dent and chief information officer, making shipments to Borders spun off in a 1995 IPO, the compa- With Agree stock closing at “Now, GM and Chrysler were resigned the following day. stores. ny has grown to 19,500 employees. $23.30 on Friday, it actually could able to knock on the door of the Additionally, the firm’s vice “When a customer of that size The original store closed and Bor- increase after a bankruptcy. U.S. taxpayer and get it from us,” president of real estate, Tony calls you up and says you aren’t ders took over a former Jacobson’s “This company has always trad- he said. “I don’t think Borders will Grant; the senior vice president of getting a check, that’s a piece of in- department store only a block ed at a discount to its peers, and have that option.” marketing, Bill Dandy; and the se- formation you have to act on,” the away, at 612 E. Liberty St. without Borders in the portfolio, But, said Ann Arbor’s Hieftje, nior vice president of business de- company’s CEO, Jed Lyons, told Ann Arbor Mayor John Hieftje that discount would go away,” he comparing Borders to the domes- velopment, Larry Norton, were The Wall Street Journal. said the city has always embraced said. tic automakers shows that there eliminated as part of a restructur- Borders also said there can be Borders and is hopeful for its fu- With a Borders financing agree- could be light at the end of the tun- ing, Davis said. no assurance that its larger refi- ture. In the event of a Chapter 11 ment instead of a bankruptcy, nel. With Carney and Laverty’s res- nancing efforts will be successful filing, he said, the headquarters DiZio set a $27 price target. “In the event that Borders en- ignations, the remaining three ex- and that it could violate its exist- would likely remain in Ann Arbor, ters bankruptcy, they’ll emerge,” ecutives on the “management” ing credit agreements and experi- though with fewer people. he said. “If you look at GM and portion of the company’s website ence a liquidity shortfall in the While the loss of employees Writing on the wall? Chrysler, they’re doing well now have been appointed in the past first quarter this year. would hurt, Hieftje also worries Are the recent moves by Bor- and making money.” year. Last week, rumors began to cir- about the retail space ders following the signs of a com- Daniel Duggan: (313) 446-0414, The CEO, Bennett Lebow, was culate that some suppliers will “If the company were to fold al- pany about to file bankruptcy? [email protected]

Auto show: Product specialists sell with facts, not just flash ■ From Page 3 2010, 75 percent of which came specialists has become more criti- Krevsky and her crew may prefer ly evolved and, as a specialist, you from automakers. The company is cal as more and more people are college-educated gearheads, but it’s have to be in tune to the cus- forecasting revenue of more than doing their vehicle research from candidates’ personality and ability tomer’s comfort level.” $25 million in 2011. a computer. to improvise that gets them hired, Productions Plus also handles Gleaming wheels, a sleek design “There is so much spent on ad- she said. Being a product specialist the specialists’ wardrobe and and a 5-foot, 10-inch Ukrainian vertising and digital media and to is about being part salesman, part makeup. runway model can lead attendees ultimately bring people in contact engineer and part actor. Krevsky has an in-house design- to an exhibit, but consumer educa- with their products,” he said. “You have to have improv skills, er to design clothing that matches tion can sell the car, Krevsky said. “That human interaction is in- because when they get on the mike the “style” of each OEM brand. “Automakers realized that when creasingly more important as peo- (microphone), you can’t fumble She also created her own makeup these people were armed with infor- ple aren’t getting out from behind over questions,” she said. “We can line, Purely Pro, using brand-specific mation, it kept customers in their their computer terminals or Twit- teach them all about the cars, but colors to further the brand image of exhibit longer,” Krevsky said. “No ter accounts as often. Our product we can’t teach improv ability.” each specialist. Krevsky also made matter how sexy that car is, the car specialists are more important Working the auto show circuit the makeup line available at 25 spas can’t talk. That’s where our product than ever before.” is a competitive field, as the aver- across the country, including sever- specialists come in.” Product specialists are put age specialist earns $300 to $500 a al local spas such as Gerald’s Salon in Dave Tillapaugh, global auto through a rigorous training pro- day. There are additional bumps Plymouth or Salon W in West show manager for Ford Motor Co., gram that includes the automak- in pay for narration, specialty per- Bloomfield. Sales from the makeup said the evolution of technology MATT TROYER er’s dealership associate certifica- formances, hosting and superviso- line represent about 3 percent of caused automakers to demand Productions Plus Inc. product tion, which is used to educate ry roles, said Hedy Popson, execu- Production Plus’ annual revenue. more knowledgeable models. specialist Eddie Zamora of Los dealership sales staff on products. tive vice president of client “My Lexus specialists are wear- “Technology in our vehicles Angeles shows off Lexus models Gail & Rice’s specialists also are services at Production Plus. ing designer clothing that matches during the 2010 auto show. continues to evolve and expand at provided time to drive the cars Of the 20,000 registered associ- the sleekness of the brand,” she an incredible pace, and we need ent Agency LLC, and Lincoln’s are they will help display at each auto ates with the company, only said. “Everything about the way our product specialists to be ex- from Southfield-based Gail & Rice Inc. show and discuss the car’s fea- around 250 will be selected to work the specialists looks is important perts so they can have construc- Gail & Rice is handling several tures with its engineers. the NAIAS floor at Cobo Center. to the image of the brand.” tive dialogue with show visitors brands at the NAIAS, including all “They have to know the details For each 100 auditioned, only Holliday’s wardrobe at the Los who are prospective customers,” of General Motors Co. and Chrysler and be able to tell consumers, ‘Yes, one or two are hired, Krevsky said. Angeles Auto Show last November he said in an e-mail. “Their ability Group LLC, Fiat SpA and Volkswagen I have driven this car.’ ” “People attend the auto show to was casual with a dress shirt and to adapt to the ever-changing land- AG, among others. It will employ 350 Most newly hired specialists shop and see all the makes and sweater and a pair of jeans. He was scape of product and technology product specialists during the show. have a working knowledge of auto- models under one roof without be- dressed stylish, but practical, like features is critical.” Jeff MacLean, vice president of mobiles, and Productions Plus ing accosted by a sales staff,” Holli- a Toyota owner. Ford’s product specialists come product communications at Gail & “loves” to hire those with an engi- day said. “The level of customer Dustin Walsh: (313) 446-6042, from Sarasota, Fla.-based United Tal- Rice, said the role of the product neering background, Krevsky said. service (at an auto show) has real- [email protected] 20110110-NEWS--0017-NAT-CCI-CD_-- 1/7/2011 6:06 PM Page 1

January 10, 2011 CRAIN’S DETROIT BUSINESS Page 17 Brandon believes in his process, says friend and fellow exec www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain BY BILL SHEA Schultz became CEO when Bran- thing in that person that attracted Brandon’s second love is mar- PUBLISHER Mary Kramer, (313) 446-0399 or CRAIN’S DETROIT BUSINESS don left to run Domino’s Pizza Inc. you to them. You do everything you keting, and he understands that [email protected] Brandon took both companies can to save it,” Schultz said. the football program is Michigan’s EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] Thirteen years working side by public and both became $1 billion- Brandon also strongly believes chief marketing tool for its athletic DEPUTY MANAGING EDITOR Jennette Smith, side with David Brandon in the plus companies under his manage- in performance reviews, he said, department and a good program (313) 446-1622 or [email protected] private sector has given Al Schultz ment. and “you do your performance re- also is important for recruiting. SENIOR EDITOR Bob Allen, (313) 446-0344 or insight into the Schultz and Brandon are friends views at the end of the year when The danger of not getting the [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 first-year Univer- and both are Michigan graduates you have all the data.” right coach is that losing continues or [email protected] sity of Michigan but haven’t spoken since Brandon During a Wednesday press con- and the program ends up in a cycle ASSISTANT NEWS EDITOR Jeff Johnston, (313) athletic direc- became Michigan’s athletic direc- ference to announce the Rodriguez of being unable to attract the type of 446-1608 or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or tor’s manage- tor in January 2010. firing, Brandon said his review cri- recruits that can break the cycle. [email protected] ment style and Brandon has three loves when it teria for the coach included perfor- “If we end up with another Rich WEB DEVELOPER Steve Williams, (313) 446- philosophy. comes to business: human re- mance in competition, academics, Rodriguez, this Michigan program 6059, [email protected] “Based on sources, marketing and public recruitment and retention, leader- could go into a funk for the next WEB EDITOR Gary Anglebrandt, (313) 446-1621, [email protected] what he’d done speaking, Schultz said. ship and the university’s image as decade,” Schultz said. “(Brandon) EDITORIAL SUPPORT Robertta Reiff (313) 446- to date, nothing “He’s very process-oriented in it relates to players and to coaches. appreciates the gravity.” 0419, YahNica Crawford, (313) 446-0329 surprises me. It’s terms of human resources and be- The latest information on player Brandon’s enjoyment of public NEWSROOM (313) 446-0329, FAX (313) 446- Schultz exactly what I lieves completely in the process,” academics didn’t come in until De- speaking means he’ll keep fans, 1687 TIP LINE (313) 446-6766 expected him to do,” said Schultz, he said. “He views hiring like it’s a cember, Schultz noted. Sophomore alumni and the media as informed REPORTERS Daniel Duggan: Covers retail, real estate and who worked with Brandon when marriage; it’s got to work for both quarterback Tate Forcier was as he can about the hiring process, hospitality. (313) 446-0414 or the latter was CEO of Livonia-based parties.” deemed academically ineligible Schultz said. [email protected] Jay Greene, senior reporter: Covers health care, newspaper coupon marketer Valas- That applies to firing, as well. two days before UM’s 52-14 loss in Bill Shea: (313) 446-1626, insurance and the environment. (313) 446-0325 sis Communications Inc. “If you’re married, you saw some- the Gator Bowl on Jan. 1. [email protected] or [email protected]. Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or [email protected]. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or [email protected]. Nancy Kaffer: Covers small business, the city of Brandon: Constant in firing a coach: Criticizing AD Detroit, Wayne County government. (313) 446- 0412 or [email protected]. Bill Shea, enterprise editor: Covers media, ■ From Page 3 advertising and marketing, the business of sports, and transportation. (313) 446-1626 or [email protected]. bled to a losing season. Some were salary of $3 million to $4 million. Nathan Skid: Multimedia reporter. Also covers the dismissed before a bowl, and one UM President Mary Sue Coleman food industry and entertainment. (313) 446-1654, — Ohio State University’s John Coop- How other schools fired, hired coaches and now-retired UM Athletic Direc- [email protected]. Sherri Welch: Covers nonprofits and services. er — after a bowl defeat. Here’s a look at some of the fourth choice. tor Bill Martin gave Rodriguez a six- (313) 446-1694 or [email protected] Dustin Walsh: Covers auto suppliers, steel, higher “Every institution is different,” coaching changes made by some Carroll quit on Jan. 10, 2010, to year, $15-million contract that was education and Livingston and Washtenaw Swarbrick said. “What’s the nature major college football programs become coach of the Seattle Sea- signed in October 2008 and has three counties. (313) 446-6042 or [email protected] of the program as it currently ex- years remaining. The deal includes LANSING BUREAU in the past decade. hawks. Two days later, the school Amy Lane: Covers business issues at the Capitol, ists? What are the deficiencies you Ⅲ The University of Notre Dame hired University of Tennessee a $4 million buyout clause that telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or have to fix? What are the needs?” fired third-year coach Tyrone coach Lane Kiffin. dropped to $2.5 million after Jan. 1. 115 W. Allegan, Suite 220, Lansing 48933. A former CEO who played foot- Willingham on Nov. 30, 2004, af- Ⅲ The University of Nebraska fired The Michigan football program ADVERTISING ball under Bo Schembechler, Bran- ter a 6-5 season but before a 38-21 Frank Solich on Nov. 29, 2003, af- accounts for most of the $105 mil- ADVERTISING DIRECTOR Marla Downs, (313) don said for months that he would loss to the University of Oregon in ter a 9-3 season, but before the lion athletics program budget, and 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) evaluate Rodriguez after the bowl the InSight.com Bowl. The team Cornhuskers beat Michigan State generates most of its revenue. The 393-0997 game rather than after the end of pursued University of Utah coach University 17-3 in the Alamo Bowl. entire department has 749 student- ADVERTISING SALES Christine Galasso, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, the regular season. He said Michi- Urban Meyer, who instead opted It then conducted a 40-day coach- athletes in 27 sports and about 250 Cheryl Rothe, Dale Smolinski gan’s performance in the bowl — it for the top coaching job at the Uni- ing search and hired recently fired employees. CLASSIFIED SALES (313)-446-0351 lost 52-14 to Mississippi State Universi- versity of Florida. Oakland Raiders coach Bill Calla- Brandon has a five-year con- MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- ty in the Gator Bowl — was among The Fighting Irish instead han — who was fired after a 5-7 tract, which has an additional five- 0416 or [email protected] his evaluation criteria, and he said hired ND hired New England Patri- season on Nov. 24, 2007, and re- year option, that’s worth $525,000 EVENTS MANAGER Nicole LaPointe it was unfair to current players to ots offensive coordinator (and placed nine days later by the cur- annually, with deferred compensa- MARKETING ARTIST Sylvia Kolaski change coaches before a bowl. tion of $100,000 per year. Financial, SALES SUPPORT Suzanne Janik, YahNica Crawford alum) Charlie Weis after a week- rent coach, Mark “Bo” Pelini. CIRCULATION Candice Yopp, Manager. “The man made a decision in ex- long search. Weis was fired on Ⅲ Michigan State President M. fundraising and other goals can MARKETING COORDINATOR Kim Winkler actly the timeline he said he was Nov. 30, 2009, after a 6-6 season. Peter McPherson in 1994 fired boost the total value of the deal. PRODUCTION MANAGER Wendy Kobylarz going to make it,” said dealmaker The school decided not to play in George Perles in his 12th season He was hired Jan. 5 after having PRODUCTION SUPERVISOR Larry Williams Matt Cullen, president and COO of a bowl game that year. It hired because of an investigation into been chairman and CEO of Ann CUSTOMER SERVICE Dan Gilbert’s Detroit-based Rock Arbor-based Domino’s Pizza Inc. MAIN NUMBER: Call (877) 824-9374 or write University of Cincinnati coach Bri- the football program that eventu- [email protected] Ventures LCC and a longtime friend an Kelly on Dec. 10, 2009. ally resulted in the Spartans for- since 1998. Prior to that, he was SUBSCRIPTIONS $59 one year, $98 two years. of Brandon who has worked with CEO of Livonia-based newspaper Out of state, $79 one year, $138 for two years. Ⅲ Ohio State University fired feiting its five victories and other Outside U.S.A., add $48 per year to out-of-state him at the Michigan Economic Devel- John Cooper after 13 seasons on sanctions. Nick Saban was hired coupon marketer Valassis Communi- rate for surface mail. Call (313) 446-0450 or opment Corp. and The Parade Co. cations Inc. from 1989 to 1998. (877) 824-9374. Jan. 2, 2001, the day after the away from the Cleveland Browns SINGLE COPIES: (877) 824-9374. “He’s a very consistent guy. He Buckeyes lost the Outback Bowl in 1995 as Perles’ replacement. Brandon, who some wanted to REPRINTS: (800) 290-5460, ext. 125; (717) 505- will approach a decision in the run for governor and was previous- 9701, ext. 125; or ashley.zander@theygsgroup 24-7 to the University of South Car- Saban quit at the end of the 1999 .com. same thoughtful, caring and deci- olina. He was replaced on Jan. 17 regular season to coach at ly a candidate to become NFL com- TO FIND A DATE A STORY WAS PUBLISHED: sive way,” said Cullen, a 1978 UM by Youngstown State University Louisiana State University and was missioner, saw his public profile in- (313) 446-0367 or e-mail [email protected]. grad. “I don’t think (media criti- crease dramatically and roughly coach Jim Tressel, who remains replaced by MSU assistant coach CRAIN’S DETROIT BUSINESS IS PUBLISHED BY cism) is going to change his style, OSU’s coach. Bobby Williams on Dec. 6, 1999. with the Rodriguez situation. CRAIN COMMUNICATIONS INC. and that’s what we need.” A New York Times analysis last CHAIRMAN Keith E. Crain Cooper was one of the few ma- Williams was fired two days after PRESIDENT Rance Crain Cullen is representative of the jor college coaches fired in recent a 49-3 loss to Michigan on Nov. 2, week said he’s is in “a big-time pick- SECRETARY Merrilee Crain influential Michigan alumni, years after a bowl game, mainly 2002. Morris Watts was the inter- le, made worse by his own actions” TREASURER Mary Kay Crain donors and supporters whom for not firing Rodriguez soon and Executive Vice President/Operations because the criticism against im coach to finish the season. Uni- William A. Morrow Brandon says he would listen to him was his late-season record in versity of Louisville coach John L. for not being able to land Jim Har- Group Vice President/Technology, but not be driven by. baugh, the former UM quarterback Manufacturing, Circulation bowl games (3-7) and against Smith was hired by the Spartans Robert C. Adams “I am not going to form a com- Michigan (2-10-1). Overall, he was before his team’s bowl that year, who has had a successful tenure as Vice President/Production & Manufacturing mittee, but I will get advice from Stanford University’s head coach. Dave Kamis 111-43-4 in Columbus. and informed his players at half- Chief Information Officer people I know who are out there, Ⅲ The University of Southern Cali- time, creating a controversy. Af- “Brandon is now finding out the Paul Dalpiaz close to the program and whose ad- golden rule for big-time college ath- Corporate Circulation/Audience Development fornia fired third-year coach Paul ter a 4-6 season in 2006, the uni- Director vice I value. This is not going to be Hackett on Nov. 27, 2000, after a 5- versity fired Smith on Nov. 1 and letic directors — 99 percent of the Kathy Henry a popularity contest. My job is to 7 season. It hired former New replaced him on Nov. 27 with job revolves around hiring the right G.D. Crain Jr. Founder (1885-1973) get the right coach,” he said dur- football coach,” the newspaper said. Mrs. G.D. Crain Jr. Chairman (1911-1996) England Patriots coach Pete Car- Cincinnati coach Mark Danto- EDITORIAL & BUSINESS OFFICES: ing the press conference announc- roll 18 days later. He was USC’s nio, who remains MSU’s coach. While the media has been critical 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 ing Rodriguez’s firing. of Brandon, metro Detroit sports in- Cable address: TWX 248-221-5122 AUTNEW DET The new coach will need to re- “UM football is big business, Coaching changes can have a siders say he will get a coach that CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 verse the losing trend begun under and in order to maintain things trickle-down effect on the athletic will turn the program around. is published weekly, except for a special issue the third week of January, a special issue the fourth Rodriguez, who was 15-22 overall like Adidas sponsorships and high- department’s budget. “I have complete confidence in week of August, and no issue the third week of December by Crain Communications Inc. at 1155 as Michigan’s 18th head coach, the level ticket revenue, winning is “The cost and benefit (of firing a Dave Brandon to find the right Gratiot Ave., Detroit MI 48207-2732. Periodicals worst in school history. He was 6- also a business priority,” said Eric coach) tends to be as much ancil- coach to guide the team. Michigan postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to 18 in Big Ten Conference games, in- Wright, vice president of research lary and they are direct,” Swar- could not be in better hands,” said CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- cluding 0-3 against arch-rival Ohio and product development for Ann brick said. “There are costs of not Andy Appleby, chairman and CEO 9732. GST # 136760444. Printed in U.S.A. State University and 0-3 versus Arbor-based Joyce Julius & Associ- getting it right.” of General Sports and Entertainment Entire contents copyright 2011 by Crain Communications Inc. All rights reserved. Michigan State University. ates Inc., which specializes in mea- When he fired Weis, the coach LLC in Rochester. Reproduction or use of editorial content in any Winning has a direct financial suring sponsorships’ financial im- had seven years left on his con- Bill Shea: (313) 446-1626, manner without permission is strictly prohibited. impact on the university. pact across all forms of media. tract, with a reported annual [email protected] 20110110-NEWS--0018-NAT-CCI-CD_-- 1/7/2011 6:25 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 10, 2011 Fezzey: Huntington banks on Fezzey’s contacts to land clients ■ From Page 1 the recipient of the Peabody Award came this past September when Leo’s Restaurant in downtown Grand for broadcasting excellence from Dunlap, who thought Michigan in Rapids. They talked for two hours the University of Georgia and the Under Fezzey, WJR adapted, general and Southeast Michigan in or so, falling right back into the Neal Shine Award for philanthropy particular had been badly served kind of comfortable conversation in journalism. by some of his competitors during they’d had in their first meeting. His Rolodex is also nearly unri- the recent recession, had been Still, Fezzey said he was sur- valed, which Fezzey says will help thrived as AM radio faded pushing his board in Columbus to prised when the offer was made. him in his major role of finding expand its presence and devote “But the more I looked at it,” he commercial borrowers. Mike Fezzey’s tenure as top ex- baugh show to WJR’s lineup, and more resources here. said, “the more sense it made, to be “Absolutely. I’m looking forward ecutive at WJR 760 AM has seen he later bolstered listenership He persuaded his chairman and a cheerleader for business and to be to that. It’s a natural extension of the popularity of AM radio wane, with the Sean Hannity and Mitch CEO, Stephen Steinour, and the an adviser and counselor for busi- my career,” said Fezzey when asked but insiders credit him for keep- Albom shows. He also led the board to take its annual three-day ness owners as they attempt to if he envisioned himself as a rain- ing the station not just afloat but launch of Radio Disney in Detroit. retreat in Detroit. “The bank has a grow their businesses. maker. “I’ve already had calls from successful — by hiring Paul W. Fezzey also guided the station, 144-year history and this was only “There’s a new momentum that’s friends of mine saying, ‘I’m very un- Smith to replace J.P. McCarthy which is in Detroit’s Fisher the third retreat in one of the re- being fueled by emerging leaders, happy with my current banking re- as the morning personality in Building, through two ownership gions, so it was not insignificant whether it’s the new administra- lationship.’ There’s a sense of aban- 1995 and other moves. changes: from Capital Cities/ABC that we were able to bring them tion in Lansing or those involved in donment. Our role is really going to “They clanged the death knell Inc. to the Walt Disney Co. in Feb- here,” said Dunlap. the rebirth of our core industry, the be to fill that space other banks when McCarthy died and when ruary 1996 and then to current On the agenda was a dinner with auto industry,” he said. “I feel very have vacated.” they gave up the Tigers broad- owner Citadel Broadcasting Corp. a dozen Detroit-area executives, comfortable to take my work expe- “There’s no substitute for local casts,” Dick Kernen, vice presi- in June 2007. He was hired at including Doug Rothwell of Busi- rience and my passion for the area knowledge and local networks,” dent of industry relations at WJR in 1980 and has been presi- ness Leaders for Michigan, Chris Il- and direct resources to people who said Dunbar, who said he’d made Southfield-based Specs Howard dent and general manager since itch of Ilitch Holdings Inc. and Dan are going to drive the rebound. 18 trips to the Detroit area since School of Media Arts. “The station December 1994. Loepp of Blue Cross Blue Shield of “The need is great. The opportu- former President Rebecca Smith seemed to have survived nicely. The station currently is ranked Michigan, with each of them asked nity is significant. The relation- left the bank last Feb. 5, to make That happens because the people as the seventh most-popular sta- to speak for 10 minutes about what ships I’ve been able to build will dri- sales calls on prospective clients running the place know what tion in the Detroit market and is a they liked about the area. ve the bank’s vision forward. There with his commercial lenders. they’re doing.” staple of the top 10, according to Fezzey, who was the last to will be a steep learning curve, but I “They’d say, ‘I really want to be- Fezzey kept WJR focused on listenership from Arbitron Inc. speak, stood up, walked over to the have great people here,” he said. lieve you. I want to trust you. But I Michigan and on business, which Citadel Midwest President Matt back of one of Huntington’s seated A few days before Christmas, don’t know you.’ Prospects felt lost was key, Kernen said. Hanlon, who works from Grand board members, braced himself Steinour flew to Michigan to meet to some degree because I wasn’t Fezzey is credited with helping Rapids, will succeed Fezzey and against the top of the back of the Fezzey over dinner at the Capital from here. It wasn’t my knowledge reverse the local decline of AM will continue to oversee the broad- chair, and began an impassioned Grille in Troy. A day or two later, as a banker; there was always this radio popularity with his addi- caster’s Michigan stations. speech about his family ties here Fezzey agreed to take the job. missing component because I was- tion of the syndicated Rush Lim- — Bill Shea and his love of the area. It was only then that he found out n’t from here.” “Forks went down, knives went where Huntington was based local- Huntington has been growing market share in the state to bank added 165 employees in South- down, the wine glasses went down. ly. “I said, ‘Hey, where do I work?’ its local presence for the past year 4.35 percent from 3.62 percent the east Michigan last year. We were mesmerized from the mo- said Fezzey. “They said, ‘We have a and a half as some of the other year before, and it increased its Huntington Bancshares has $53 ment he began. Our board was nice building in Troy.’ ” large regional banks have been market share in the five-county re- billion in assets and more than 600 moved,” said Dunlap. “He didn’t And a nice view from a large scaling back theirs. In October gion of Southeast Michigan from branches in six states. know he was interviewing for a job sixth-floor office where Fezzey and 2009, it bought $400 million in de- 2.93 percent to 4.03 percent. It kept Dunlap and Fezzey first met in that night. And I didn’t know it, ei- Dunlap were being interviewed. posits and the six branches of War- its rank of eighth in market share 2009 when Crain’s Detroit Business ther.” Was it Fezzey’s office? ren Bank when it was shut down by both in the region and the state. and WJR organized a VIP tour for But as Dunlap drove back to “I guess so.” He looked at a PR state and federal regulators. Through the first three quarters, Detroit executives to the inaugural Grand Rapids, it dawned on him: person. “Is it?” As of June 30, according to the the bank was the top Small Business ArtPrize event in Grand Rapids. Fezzey just might be the president It was. Federal Deposit Insurance Corp., Administration lender in the state, Both said they hit it off right away. he’d been waiting for. Tom Henderson: (313) 446-0337, Huntington increased its deposit with $52.7 million in loans. The The next significant contact They met early in November at [email protected] Barden: Wife’s petition may mark start of battle over assets ■ From Page 1 truth,” said Baskin, of the Birm- because she has been unable to counsel at Detroit-based Dickinson said Mayoras, a partner at the nica, Miss.; Black Hawk, Colo., and ingham-based Baskin Law Firm contact Barden, is unsure of Wright PLLC who is representing Troy-based law firm Barron Rosen- Las Vegas. P.C. “He’s up and around, he what’s in his will — if there is one her. berg Mayoras & Mayoras PC. The casino in Las Vegas was knows what’s going on and he’s at all — and can’t figure out what “Their marriage is broken He said that pursuing both ap- spun off from Majestic Star and is not lying in bed, that’s for sure.” is contained in several trusts, said down, they’re not communicating pointment of a conservator and not included in the bankruptcy. Marshall made the legal move Hanley Gurwin, an attorney of and there is no likelihood it will be separate maintenance is unusual. Casino investment came toward preserved,” he said. “At this point, On the business front, Barden’s the latter part of 67-year-old Bar- she needs to protect the estate best Majestic Star LLC is nearing the end den’s career. she can.” of the Chapter 11 bankruptcy initi- His investments have included Gurwin said Marshall is seeking ated in November 2009. real estate, software and automo- separate maintenance because she However, the current plan of re- tive ventures among a wide portfo- still cares for him. organization leaves Barden with lio of business dealings. “She’s not looking for a divorce, very little of his own investment Once considered a successor to she wants what’s in his best inter- remaining, according to a story on former Mayor Coleman Young, est,” he said. “Her concern is just the Dow Jones News Wire. The Barden created a cable television that in his state, she can’t protect company will be owned by credi- company in the mid-1980s that led his best interest.” tors, according to the story. to larger investments. Gurwin also said Marshall has Barden faces an additional com- In 1990, his holdings generated Mailing Services not been able to contact Barden for plaint, personally, for changing $60 million in revenue, Crain’s re- the last couple weeks. the tax status of the non-bankrupt ported. Baskin said Barden knew she Barden Development Co. to a “Sub- In 1994, Barden sold his interest was calling. “He chose not to an- chapter S” corporation from a in Barden Cablevision to Philadel- swer her calls,” he said. “Subchapter C” corporation after phia-based Comcast Corp. for about The move could be a pre-emp- the filing, according to a $100 million, according to Crain’s tive strike if Marshall thinks she Bloomberg News Service story, archives, and began to focus on might not get certain assets or may making the company “liable for casinos. be cut out of the will, said Andrew millions of dollars,” according to a Barden’s other business holdings Mayoras, an estate planning attor- the report. have included Waycor Development ney who co-authored Trial and Under the additional suit, Bar- Co., a real estate development unit, Heirs: Famous Fortune Fights! den could be liable for $2 million in and NovaNET Learning Inc., a comput- “If there is a trust set up and it’s damages. er-based interactive educational all going to the kids, a wife can get Barden’s casino business start- software company of which Barden her fair share now by taking this ed in 1993 with two riverboat casi- was 51 percent owner. He sold his route of separate maintenance nos in Gary, Ind. interest in the company in 1999. rather than waiting until assets His holding company expanded Daniel Duggan: (313) 446-0414, are distributed through a will,” after that to acquire casinos in Tu- [email protected] 20110110-NEWS--0019-NAT-CCI-CD_-- 1/7/2011 6:03 PM Page 1

January 10, 2011 CRAIN’S DETROIT BUSINESS Page 19 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 1-7

The program, formerly though hers is the minori- ployed by the new joint known as the Detroit Public Loss of military ty party. venture: Jones Lang LaSalle Schools Volunteer Business at Beaumont Hospitals LLC. LeBron who? Corps/B.O.L.D. program COMPANY NEWS (Businesses, Organizations vehicle work OTHER NEWS Optimizing Learning in De- Commerce Township- troit), builds on the DPS based Powermat Inc., whose The Southeast Michi- Gilbert has Reading Corps, launched could mean technology allows cell gan Purchasing Managers In- last year in the wake of poor phones and other electron- dex climbed 2.1 points in education progress test re- ic devices to be charged December to 56.3, marking ports. $2B hit to state wirelessly, has received an the 11th straight month of The initiative also builds investment of $5 million economic expansion in ichigan could lose Ted Williams on other outreach efforts, in- from GM Ventures, the ven- Southeast Michigan. A cluding the new DPS Alumni as much as $2 bil- ture capital arm of General score above 50 represents an Gilbert of Quicken Execs head to ‘boot camp’ Association and the DPS Foun- M lion in defense Motors Co. GM will be the an expanding economy. Loans fame is mak- dation, Jennifer Mrozowski, ex- spending as a result of the first automaker to use the The Michigan Supreme D ing more headlines for regional cooperation ecutive director of communi- decision by the Pentagon to products and will have a Court, in a 4-3 decision, has eliminate the Expedi- in Cleveland. The Plain Six local executives are cations for the district, year of exclusivity after it overturned a landmark 2004 tionary Fighting Vehicle, Dealer newspaper is report- expected this week to attend wrote in an e-mail. rolls out the technology in ruling that has greatly re- being developed by Sterling ing that Gilbert’s Cleveland a Harvard University “boot The Volunteer Business about 18 months in the stricted lawsuits against en- Heights-based General Dy- Cavaliers of the National Bas- camp” meant to help them Corps will match local busi- Chevrolet Volt and other vironmental regulators, AP namics Land Systems. ketball Association have of- form lasting working rela- ness volunteers with schools models. reported. The decision now An economic impact fered Ted Williams an an- tionships and strategies to to provide tutoring, mentor- Visteon Corp. said its allows people to sue the study prepared for GDLS nouncing job and a house. benefit the region. ing and other resources. common stock will begin state if they fear a permit No, not the dead baseball by Ohio-based Foresight In- The session provides in- For example, WJBK Fox 2 trading today on the New for certain projects would Hall of Famer whose head ternational projects that the formation on how to get past will be paired with the Com- York Stock Exchange under harm the environment. was cut off and frozen by loss of the armored-vehicle local rivalries for the communication and Media Arts the symbol VC. The suppli- Director Graham Beal his relatives. A job for that program would cost slight- mon good of a community as High School. Barnstormers, a er will offer about 50 mil- said in an e-newsletter that Ted will have to wait for fu- ly more than $2 billion in well as sharing strategies for flight company, will be lion shares. Shares now the Detroit Institute of Arts ture cryogenic advances. lost spending on compo- meeting economic, environ- paired with Davis Aerospace trade over the counter at saw unexpected financial This Ted is the homeless nents and services for the mental and social goals. High School. $72.15. boons last year, including a guy who became a YouTube vehicle, including nearly Living Cities, a collabora- Other businesses and non- Providence Hospital in $10 million state reim- and media sensation last $1.1 billion in congression- tive of large foundations profits that have signed on Southfield will begin con- bursement on $40 million week after the Columbus Dis- al districts of Southeast and financial institutions, include General Motors, PNC struction this spring on a in asbestos remediation, patch posted a video of him Michigan. The company es- the U.S. Department of Hous- Bank, Chase Bank, the Double- $5 million expansion of its record net proceeds of exchanging golden-throated timates that 10,725 Michi- ing and Urban Development tree Fort Shelby Hotel, the Skill- emergency department. about $1 million from its greetings in exchange for gan jobs are tied to the pro- and Harvard’s John F. man Foundation, Michigan The project will increase annual gala in mid-Novem- money along the side of the gram. Kennedy School of Govern- State University, City Year De- the size by 4,055 square ber, and $2.2 million from road. Williams is a former ment are hosting the camp. troit, Office Depot and the De- feet, add 16 treatment an auction of “Custer’s radio announcer who had troit Regional Chamber. rooms and include renova- Last Flag.” Beal still sees a fallen into hard times fueled Local representatives are: NHL franchises lose value Jennifer Evans, planner, South- DPS plans to kick off the tion of 17,300 square feet. need to work toward long- by drugs, but he now claims program at a 5 p.m. meeting According to the website Troy-based Gorman’s term financial stability. to be drug-free. east Michigan Council of Gov- Jan. 27 at Renaissance High Forbes.com, the Detroit Red Home Furnishings and Interi- Crews are close to ful- Williams told a Cleveland ernments; Debbie Fisher, man- School. Wings lost 6 percent of or Design will expand into filling Detroit Mayor Dave TV station he will take the ager, community and their value as a franchise, the Grand Rapids area Bing’s vow to knock down offer from the Cavs. Thurs- economic development, Fo- Luxury side show returns falling over 12 months to with two new stores. 3,000 vacant and aban- day night, his voiceovers, a cus: HOPE; Chuck Hersey, envi- For the third year, invited $315 million, and the Car- Pittsfield Township- doned houses in one year. paid gig, began running on ronmental programs manag- VIP guests were able to by- olina Hurricanes, owned by based fuel cell maker Adap- The city said 1,850 have house ads for MSNBC’s Lean er, SEMCOG; Benjamin pass Cobo Center during the Peter Karmanos Jr., lost 9 tive Materials Inc. has been been leveled since April, Forward campaign, and he Kennedy, program officer, North American International percent of their value to acquired by Ultra Electron- and 1,200 more should was the guest of “Late Night Kresge Foundation; Maud Lyon, Auto Show media days and $162 million. ics Holdings plc of the Unit- come down over the next with Jimmy Fallon.” He also executive director, Cultural get a sneak preview of high- ed Kingdom for $23 million three months. Bing wants landed a job doing ads for Alliance of Southeast Michigan; end cars. from founders Aaron and 10,000 vacant houses torn Kraft Macaroni & Cheese. and Marja Winters, deputy di- ON THE MOVE “The Gallery” event was Michelle Crumm. down before the end of his In other Gilbert-related rector of planning and devel- expected to take place Sun- Melissa Roy, Aaron Crumm, first term. news, his Rock Ventures LLC opment, city of Detroit. day, returning to the MGM senior director of 39, will remain as Darwin “Joe” McCoy, wants to narrow a channel government rela- vice president of chairman of the Sault Ste. in the Cuyahoga River by 29 Grand Detroit. The event had a DPS forms new biz alliance roster of luxury car manu- tions for the Detroit technology. Marie Tribe of Chippewa Indi- feet to make room for more Regional Chamber, Michelle Crumm, The Detroit Public Schools facturers ranging from Aston ans, said in the tribe’s Jan- parking at a casino that Ohio will become an as- 39, will be general last week announced the Martin to Lamborghini and uary online newsletter that voters approved last year. sistant Macomb manager until a re- new Volunteer Business American Express Centurion it might pursue a deal with The spot is called Colli- County executive placement is sion Bend, apparently chal- Corps, an initiative aimed at was to bring in 100 guests a developer to seek con- this month. found. The compa- gressional approval for a lenging enough for passing harnessing business inter- from around the country for ny’s 55 employees The Michigan casino on tribal land in Ro- ore freighters at its current est in helping the district’s a private dinner hosted by will stay in Pitts- Supreme Court also mulus. The tribe previous- width. students succeed. chef Wolfgang Puck. Roy field Township. selected Robert ly owned Detroit’s Greek- Troy-based In- Young Jr. to be its town Casino-Hotel and teva Products LLC chief justice, re- currently owns five Ke- placing Justice announced the wadin-branded casinos in Marilyn Kelly. Kelly completion of its northern Michigan. now is one of three acquisition of Arvin- EST FROM THE LOGS Democrats in the Meritor Inc.’s body B B systems unit. The court’s minority. OBITUARIES READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS roughly $27 mil- Geneva Bo Bowman, founder of lion deal adds 12 Williams, City Con- the Berkley-based Schmidt- plants in Europe Someone’s gonna get winged Streamline by stopping checks nect Detroit’s long- Bowman Co. Inc., a supplier Williams and five in Asia In 2005, DPS CFO time president and of textiles to businesses, and doubles the number of Florida-based Ricardo Kisner, then the CEO, plans to retire effec- died Dec. 18. He was 86. Hurricane Grill & Wings employees to 8,000. “ city’s director of fiscal tive March 1. Executive Kate Ebli, a former De- is blowing into town operations, developed a Vice President Dierk Hall William Beaumont Hospi- and is planning to mocratic state lawmaker plan to streamline city will be interim president tals has formed a joint ven- from Monroe and a former dethrone Buffalo Wild government: Don’t and CEO. Williams plans ture with Chicago-based telecommunications execu- Wings as king of the eliminate a redundant chicken wing in metro to continue consulting real estate company Jones tive for Maclean Hunter and department — just don’t Lang LaSalle to handle real Detroit. fund it. … It’s worth work. Comcast Cable Communica- considering. Kathy Vosburg, R- estate operations for the 8.5 tions, died Jan. 2 of cancer. ” Chesterfield Township, million square feet of space She was 52. became the first GOP used by Beaumont. The 300 Terry Iwasaki, vice pres- Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Nancy Kaffer’s blog on the city of Detroit chairperson of the reorga- employees of the Beaumont can be found at www.crainsdetroit.com/skid and small business can be found ident and CFO of Metaldyne at www.crainsdetroit.com/kaffer nized Macomb County Board subsidiary now operating LLC, died Dec. 26 of cancer. of Commissioners, even its facilities will be em- She was 50. DBpageAD.qxp 1/5/2011 9:19 AM Page 1

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Huntington Free Business Checking is limited to 200 transactions and $5,000 in-branch cash deposits per month, then excess transaction and cash deposit transaction fees apply. A “transaction” is any combination of checks paid, deposit tickets, deposited checks and ACH credits and debits. Award claim based on 2009 Business Banking Study. All excellence award selections were based on studies conducted by Greenwich Associates, a leading worldwide strategic consulting and research ﬁrm specializing in ﬁ nancial services. Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia and Western PA. Source: U.S. SBA from October 1, 2007, through November 30, 2010. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington.® Welcome.TM is a service mark of Huntington Bancshares Incorporated. ©2011 Huntington Bancshares Incorporated.