DETROIT BUSINESS MAIN 05-07-07 A 1 CDB 5/4/2007 6:49 PM Page 1

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http://www.crainsdetroit.com Vol. 23, No. 19 MAY 7 – 13, 2007 $2 a copy; $59 a year

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN ASC files for Ch. 11, Biz-tax plans under scrutiny makes deal to sell units Southgate-based ASC Inc., Both big and small details of the founded by the late Heinz Automakers could get credit for laid-off workers plans are under scrutiny. For ex- Prechter in 1965, has en- ample, the Michigan Townships Asso- tered Chapter 11 bankrupt- BY AMY LANE questions fac- ments in two central proposals to ciation criticized the Senate plan cy protection as part of a CAPITOL CORRESPONDENT THE DETAILS ing lawmakers replace Michigan’s single-busi- for the revenue local governments as they move to ness tax. would lose from the personal-prop- plan to sell itself. It filed the LANSING — Michigan au- More on the petition Wednesday in U.S. negotiate dif- Passed last week were a Senate erty tax, saying the measure would tomakers and other companies plans, Page 44. Bankruptcy Court in Detroit. ferences be- Republican plan that would in- “cripple essential local services could get a new tax credit for ASC, which specialized tween compet- clude an approximate $600 million that families depend on.” wages they pay to laid-off workers, in making sunroofs and ing business-tax plans passed by tax cut and about $87 million in And while the House Democrat- while some of Michigan’s profes- low-volume specialty cars, each chamber of the Legislature. personal-property tax relief, and a ic plan contains $700 million in sional firms couldn’t get the same already has shut down four From local governments’ con- House Democratic plan that would new tax credits for in-state busi- of its plants and cut its tax credit for people they employ, cerns over retaining personal- fully replace the SBT’s $1.9 billion ness investment, compensation, workforce from 1,250 at the under a business-tax plan passed property tax revenue to the ques- in revenue and include more than and research, one concern is that start of 2005 to 252 as it by the state House last week. tion of tax neutrality versus tax $900 million in personal-property See Tax, Page 44 struggled to stay alive. That’s just one of the policy cut, lawmakers will debate ele- tax relief. The pending sale to Los Angeles-based private-eq- uity firm Hancock Park As- sociates will retain ASC’s sunroof and design units, Architecture but liquidate “non-produc- tive” assets. ASC already has shut down its composites opera- firm targets tions and failed in earlier ef- forts to find a buyer for Auto brain those facilities. In January, liquidators sold presses, Michigan paint lines, sanding sta- tions, injection-molding ma- chines and other equipment from three plants ASC closed last year, according drain for growth to Hilco Industrial L.L.C., an equipment liquidator. BY JENNETTE SMITH According to an affidavit CRAIN’S DETROIT BUSINESS filed in bankruptcy court As vehicle sales rise outside U.S., by ASC CEO Paul Wilbur, Architecture and engineering firm ASC ran into trouble when SSOE Inc. plans to expand its three it invested nearly $250 mil- will decision-making follow? Michigan offices this year, including lion to make the Chevrolet the Troy office that specializes in SSR sports truck for Gener- BY BRENT SNAVELY health care and retail projects. al Motors Corp. along with CRAIN’S DETROIT BUSINESS North America: 12 million vehicles to 6 million The Toledo-based company plans to three other specialty vehi- add 200 employees this year, and in- y 2013, vehicle development crease its Michigan cles contracted to ASC by for more than 90 percent of 1997 12M the Detroit automaker. DEVELOPMENT SHIFTS employee base by B new cars and trucks made at least 25 percent ASC expected a $225 mil- 2006 10M will take place outside the United According to a report in each office, or up lion boost in its annual rev- States, according to automotive re- enue from the program, but 2013 6M by CSM Worldwide, to 60 new jobs. search firm CSM Worldwide Inc. CEO Tony Da- GM later decreased produc- more of the primary And as those global product-de- mon said the Troy tion of the SSR, canceled it velopment trends play out, both development of early and terminated the Europe: 20 million vehicles to 30 million office, the second- automakers and suppliers will vehicles produced is largest for the com- contract for the other three move more decision-makers to the 1997 20M expected to take place pany with 116 em- vehicles, Wilbur said. places where the automotive in- At the same time, Daimler- Damon ployees, houses dustry is growing, industry profes- 2006 in Europe and Asia. Chrysler AG 20M experts for increas- halted produc- sionals say. tion of its Dodge Viper — ingly sophisticated health care as- Michael Robinet, vice president 2013 30M signments and a steady lineup of re- which used composite parts of global vehicle forecasts for CSM, from ASC — for a year be- tail work. Clients in those categories presented his forecast April 16 at a Asia: 20 million vehicles to 43 million include Oakwood Healthcare, Wayne cause of problems with an seminar sponsored by the Original 1997 20M State University-University Physician engine. ASC reduced its Equipment Supplier Association, work force and shut down Group, University of Michigan Health Sys- which was held in conjunction with 2006 28M tem, Mt. Clemens Regional Medical Cen- factories and also began the Society of Automotive Engineers seeking a new buyer in 2005. ter, Beaumont Hospitals, Meijer Inc. and World Congress at Cobo Center. 2013 — Crain News Service 43M Rite Aid. While the presentation was “Both of those areas are very See This Just In, Page 2 See Autos, Page 45 See SSOE, Page 45

Chasing musical CRAIN’S LIST dreams while holding a Largest law firms,

NEWSPAPER day job, Page 29 Page 14 DETROIT BUSINESS MAIN 05-07-07 A 2 CDB 5/4/2007 6:29 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS May 7, 2007

A call to Farmer Jack’s parent compa- worked in real estate for 30 years, was KNOW A POWER SELLER? TELL US ny, The Great Atlantic & Pacific Tea Co. Inc., previously president of West Bloomfield THIS JUST IN Crain’s Detroit Business is seeking top based in Montvale, N.J. late Friday after- Township-based Gordon Realty Corp. salespeople for its Power Sellers feature. ■ noon was not returned by deadline. — Jennette Smith From Page 1 This special section, to be published July 9, Guardian to close Roseville plant — Sheena Harrison will spotlight the dealers and closers in Valeo sells technical center Southeast Michigan that use creativity and Auburn Hills-based Guardian Industries DeMaria gets Adrian deal moxie to close the sale and exceed goals. Corp. said last week that it plans to close Valeo Electrical Systems Inc. closed on To nominate someone, go to its automotive molding and extrusion Detroit-based DeMaria Building Co. has the sale of the 437,000-square-foot Auburn www.crainsdetroit.com and click on “Power plant at 28250 Hayes Road in Roseville. been selected to build the NextDiesel man- Hills technical center at 3000 University Sellers” under the “forms and surveys” Amy Hennes, Guardian’s manager of ufacturing and office complex in Adrian. Drive to a new owner that has signed a headline in the left-hand bar. corporate communications, said the plant The $4 million contract was awarded long-term lease with Delphi Corp., brokers To request a nomination form by mail, fax or e- is expected to close by the end of the year by Biofuel Industries Group L.L.C., which said last week. mail, call Anita Duncan at (313) 446-0329. and the closing will affect 65 jobs. She owns and operates NextDiesel. The 30,000- The Metcalf Family Living Trust bought Nominations must be received by June 8. said some of the work will move to plants square-foot plant will be used to make the property in an approximately $33 mil- Guardian owns in Georgia. biodiesel fuel from vegetable oils, animal lion deal previously approved in Delphi’s LOOKING FOR HEALTH CARE HEROES Guardian said its decision was unrelat- fats and other substances. bankruptcy case. Delphi plans to house ed to the performance of the plant. The complex is to be completed in July. 1,400 employees at the site. Crain’s Detroit Business is seeking The 46,000-square-foot building is — Sheena Harrison Brokerages on the deal include L. Mason nominations for Health Care Heroes, a special section in the Aug. 6 issue. Winners will be owned by College Industrial Park Associates Capitani, Binswanger America L.L.C., Grubb & Ellis and Colliers International. Capitani also named in the following categories and of Bingham Farms, and Guardian’s lease Oakwood’s $106.9M in bonds sold recognized during a Sept. 19 luncheon: expires in March 2009. is representing Valeo in a search for a Ⅲ Corporate achievement in health care: — Brent Snavely Oakwood Healthcare Inc. said Friday that new site in metro Detroit. — Jennette Smith Honors a company that has created an the Michigan State Hospital Finance Authori- innovative benefits plan or that has solved a Union: Team says no to Farmer Jack ty has successfully sold $106.9 million of problem in health care administration. Oakwood’s revenue bonds. CORRECTIONS Ⅲ Advancements in health care: Honors a A management team that was interest- Oakwood said it is using $80.2 million company or individual responsible for a ed in buying the Farmer Jack chain has de- of the proceeds to pay down debt from Ⅲ An April 30 People item said William discovery or for development of a new cided not to pursue a deal, the United Food 1994 and 1995, said Paula Rivera-Kerr, me- Peterson had been promoted to vice pres- procedure, device or service that can save and Commercial Workers Local 876 said. dia-relations officer, and the remaining ident of human resources for Henry Ford lives or improve quality of life. The union, which represents 5,100 $26.7 million to help fund a $67 million ex- Health System. Peterson left Henry Ford Ⅲ Physician: Honors a physician whose workers at 66 Farmer Jack stores, said in pansion of the Oakwood Southshore Med- after Crain’s received the announce- performance is considered exemplary. a statement last week that an “experi- ical Center in Trenton. ment, but before it was printed. Ⅲ Allied health: Honors an individual from enced management team” was interested — Sherri Begin Ⅲ A story on Page 15 in the April 30 edi- nursing or allied health fields deemed in buying the chain. Union local Secre- tion should have said Justin Near once exemplary by patients and peers. tary-Treasurer Rick Blocker declined to lived in Midland, not Saginaw. Sponsors include Fifth Third Bank, Academy of identify the group or specify what contact Sperry Van Ness hires senior adviser Ⅲ A story on Page 14 of the April 30 issue the Sacred Heart and the Michigan State the group had with the union, but said the Brian Gordon was named a senior advis- should have said the Web site After5 University Management Education Training Center in Troy. Nomination forms can be found union received word Thursday that the er for Sperry Van Ness last week, expand- Detroit.com had 20,000 unique visitors in at www.crainsdetroit.com, under “Forms and group decided not to go forward because ing the metro Detroit team. Gordon, who March. The story listed an incorrect Surveys.” The deadline to nominate is June 8. of a market evaluation of the stores. specializes in retail transactions and has number. Call Michelle Martinez at (313) 446-1622 for more information.

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Business Litigation

Intellectual Property DETROIT BUSINESS MAIN 05-07-07 A 3 CDB 5/4/2007 6:56 PM Page 1

May 7, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Patent ruling puts INDEX spin on ‘obvious’

Law of entertainment: Specialists find steady Experts divided on magnitude of effects work in Motown. Page 11. BY ROBERT ANKENY a whole would have been obvi- Road to Renaissance: AND ANDREW DIETDERICH ous … to a person having ordi- Group outlines plans to FROM THE RULING improve region’s CRAIN’S DETROIT BUSINESS nary skill in the art.” economy. Page 40. The Supreme Court ruled that “Granting patent protection A U.S. Supreme Court decision patents should not be issued to advances that would occur for “ordinary innovation” where These organizations appear in this last week ruled that inventions in the ordinary course without week’s Crain’s Detroit Business: and innovations must be “non- “subject matter as a whole real innovation retards obvious” in order for patents would have been obvious … to progress,” Justice Anthony American Lung Association ...... 41 to be granted. a person having ordinary skill ArvinMeritor Inc...... 4, 41 Kennedy wrote for a unani- Asahi Tec Corp...... 45 The ruling left interested in the art.” mous court. ASC Inc...... 1 parties divided between those Larry Willemsen, KSR vice Automation Alley ...... 45 Automotive Marketing Services Inc. 44 who lauded it as a spur to inno- called DriveSol Worldwide Inc., in president of engineering, said Center for Automotive Research . . . 45 vation and those who said it a lawsuit over whether its the decision is “nice for a lot of Christa’s Ponds and Gardens Inc. . . 44 will lead to an ocean of litiga- patents protected all combina- people trying to do their job in Control Gaging Inc...... 24 Cranbrook Schools ...... 34 tion against thousands of exist- tions of an adjustable pedal this industry and clears the CSM Worldwide Inc...... 1 ing patents. and electronic sensor. Detroit Renaissance ...... 40, 45 ARA HOWRANI path for people who have made The court, in KSR Interna- The Supreme Court said no, innovation to be rewarded.” DriveSol Worldwide Inc...... 3 Heather Kral owns a live/work unit in Walled Lake. DTE Energy Co...... 41 tional Co. v. Teleflex Inc., ruled ruling that patents should not Patents should be protecting Dykema Gossett P.L.L.C...... 11, 43 against the latter, a Troy-based be issued for “ordinary innova- Dylan’s Raw Bar & Grille...... 35 auto pedal manufacturer now tion” where “subject matter as See Patents, Page 43 Edward G. Baranek Landscaping Inc...... 30 Engineering Society of Detroit. . . . . 41 Eph McNally’s ...... 35 Giarmarco, Mullins & Horton P.C. . . 12 Home, Hella Electronics Corp...... 27 Hertz Schram & Saretsky P.C.. . 11, 29 Home Instead Senior Care ...... 42 Honigman Miller Schwartz ...... 11 Hotel St. Regis ...... 35 Howard & Howard Attorneys . . . 18, 43 Jaffe, Raitt, Heuer & Weiss P.C. . . . 11 La Musique ...... 35 work Survey: Businesses Landon IP Inc...... 19 LaPita Fresh...... 36 Law Offices of Mindy M. Schwartz. . 13 Liebherr Automation Systems Co. . . 24 Lucky Monkey Tattoo Parlour . . . . . 30 Developers put bets on Mack Avenue Records ...... 29 Magic Bag ...... 29 Magic Stick ...... 29, 30, 31 condo-storefront combos Masco Corp...... 26 hiring or holding Metaldyne Corp...... 41, 45 MichAuto...... 45 Michigan Chamber of Commerce . . 44 BY JENNETTE SMITH Michigan Future Inc...... 40 CRAIN’S DETROIT BUSINESS Mosher, Dolan, Cataldo & Kelly . . . 42 But more say SURVEY: SPEND TAXES TO LURE BUSINESSES NSF International...... 6 In several projects around town, local develop- Quinn Law Group P.L.L.C...... 43 Most Michigan businesses believe the state should R.G. & G.R. Harris Funeral Home . . 29 ers are experimenting with new variations on the continue to spend tax revenue to attract and expand R.L. Polk & Co...... 34 live-work condominium. outlook isn’t good domestic and international businesses in the state, Real Estate One ...... 42 Despite the housing slump, there are a handful Royal Oak Music Theatre ...... 29 according to the Future Business Index. Salad Creations ...... 35 BY SHEENA HARRISON of local live-work developments planned or newly In the May survey, 79 percent of respondents said Saturn Electronics ...... 41 open that are meant to provide space for business CRAIN’S DETROIT BUSINESS it’s important for the state to provide assistance to Shelby TV ...... 32 owners who want a storefront attract new business and to help existing businesses SmithGroup Inc...... 45 Southern Hospitality Restaurant downstairs from where they live. Despite a growing discontent with the expand or move within the state. NSIDE state’s economy, most Michigan businesses Group L.L.C...... 35 I Common threads for successful Meanwhile, 74 percent believe it’s important for the Sparkling Elegance ...... 42 Terra Land condominium projects in this cat- say they’re planning to hire or maintain state to spend state tax dollars on attracting SSOE Inc...... 1 Terra Land Group ...... 3 Group, egory — whether they are in Fer- their staffing levels in the next six months, international investments and businesses to the according to a recent statewide survey of The Adco Group ...... 42 Crosswinds ndale, Birmingham or Downriver state. Sixty-three percent of businesses surveyed The Baskin Law Firm P.C...... 11, 12 Communities — are to keep them small in scope small to midsize companies. believe state tax dollars should be spent to inform Tom’s Oyster Bar ...... 35 Tooling, Manufacturing & and The Adco or add a live-work piece to a larg- About 77 percent of respondents say Michigan businesses of services and assistance Group have they’re somewhat or very dissatisfied with available to them. Technologies Association ...... 24 live-work er mixed-use plan. The developers Tourism Economic are betting predictions about the state’s economy, up from 69 percent in EPIC-MRA Vice President Ed Sarpolus said the Development Council ...... 29 projects under November. Meanwhile, 11 percent of Michi- questions were asked because the state is TRW Automotive Inc...... 4 development. Southeast Michigan’s economic gan small and midsize companies say they considering cutting back on business-marketing Victor Saroki & Associates P.C.. . . . 42 See box, recovery coming from incremen- programs to help balance its budget, Sarpolus said. Visteon Corp...... 4 Page 42. tal small-business growth will plan to hire soon, and 68 percent say they Young & Susser P.C...... 43 plan on keeping the same number of em- The Michigan Economic Development Corp. received Ypsilanti Automotive Heritage make the projects marketable. $10 million for its marketing efforts in fiscal 2006 Museum...... 34 Novi-based Terra Land Group is ployees. That’s according to the most recent Fu- and 2007. An additional $13.2 million was allocated building a series of small-scale live-work develop- in those years for Travel Michigan, the state’s ments in Ferndale, following its Legato Point pro- ture Business Index survey conducted by tourism-marketing agency. Lansing research firm EPIC-MRA. The re- ject in Walled Lake. So far, 28 units of a planned 62 The state’s fiscal year runs from BANKRUPTCIES ...... 6 are up in Ferndale. The Legato at Brickley Place sults were drawn from a random sample of Oct. 1 to Sept. 30. BRIEFLY ...... 41 more than 600 small and midsized business- and Webster Place units are spread over four sites Michael Shore, chief BUSINESS DIARY ...... 20 along Hilton Road and Livernois and priced start- es statewide, Vice President Ed Sarpolus communications officer for the CALENDAR ...... 23 ing at $159,000. said. MEDC, said it appears that the CAPITOL BRIEFINGS ...... 6 The two-year-old Walled Lake development, The semiannual survey is commissioned budget for state marketing CLASSIFIED ADS...... 38 with 23 of 42 built units sold, has tenants that in- by the Lansing-based Accident Fund Insurance programs may be reduced for fiscal DIVIDENDS...... 26 clude a gallery, a salon, a jewelry boutique and a Co. of America, which uses the data to ana- 2008. But the survey results show EARNINGS ...... 26 Michigan’s business community real estate materials dealer. lyze trends among its Michigan customers. KEITH CRAIN ...... 8 “The success of our company depends on believes such programs are worth LETTERS ...... 8 Because buyers purchase the live-work units the cost. the success of the business environment in Shore MARY KRAMER...... 9 with a residential mortgage, it can make the busi- “I was surprised by how strong the support is for the ness startup process a little less daunting, said Michigan,” said Bob Metzger, Accident OPINION ...... 8 Fund communications adviser. economic efforts of the state,” Shore said. “It seems the Geof Greeneisen, vice president of Terra Land. business community recognizes how important it is.” PEOPLE ...... 22 Among other results: RUMBLINGS...... 46 — Sheena Harrison See Live-Work, Page 42 See Survey, Page 44 WEEK IN REVIEW ...... 46 DETROIT BUSINESS MAIN 05-07-07 A 4 CDB 5/4/2007 5:14 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS May 7, 2007

GEOTECHNICAL TAKING STOCK WE'RE ENVIRONMENTAL NEWS ABOUT DETROIT AREA PUBLIC COMPANIES CONSTRUCTION ENGINEERS. ENGINEERING Tale of 3 suppliers: $333M lost; WE HATE SURPRISES. restructuring is main culprit All of us at G2 share a single-minded obsession with unearthing based ArvinMeritor Inc. is less clear. every obstacle and opportunity on your site. We design precise But all losses are not ArvinMeritor said Tuesday it solutions that make it all work – before you’re in too deep. lost $94 million on revenue of $1.63 billion during the quarter, largely Troy, MI: 248.680.0400 created equal, analysts say because of $81 million in losses Brighton, MI: 810.224.4330 from discontinued operations. For Chicago, IL: 847.353.8740 BY BRENT SNAVELY Inc., in contrast, is in better shape the same period last year the axle, www.g2consultinggroup.com CRAIN’S DETROIT BUSINESS even though it lost $86 million on braking and driveline parts maker revenue of $3.57 billion during the reported net income of $45 million Three large U.S. auto suppliers first quarter, partly because of on revenue of $1.63 billion. last week said they posted a com- charges related to debt-retirement The supplier also announced a bined loss of $333 million during costs. UNEARTHING POSSIBILITIES restructuring plan that includes the quarter that ended March 31, During the quarter ending plans to close 13 plants. The plant with a sizable chunk of those loss- March 30, TRW incurred debt-re- closures will affect 2,800 employ- es stemming from one-time re- tirement charges of $147 million. ees. Nine of the plants will be in structuring charges. Without the debt charges TRW, a But level of concern among Wall North America while the other manufacturer of automotive safety Street analysts for the three com- four will be in Europe, including systems, said net earnings would panies — Visteon Corp., TRW Auto- one in Frankfurt, Germany. PASSIVE CANDIDATE TRAINING SEMINAR have been $61 million. motive Inc. and ArvinMeritor Inc. — is Aside from Frankfurt no other TRW posted net income of $47 far different with Visteon on one locations were announced. Arvin- end of the spectrum and TRW on million on revenue of $3.4 billion during the same quarter last year. Meritor also announced it’s freez- the other end. ing the company’s defined benefit Van Buren Township-based Vis- Despite the first-quarter results, pension plan for 3,800 salaried and teon, the troubled former parts TRW raised its sales and earnings nonrepresented employees in the unit of Ford Motor Co., said last outlook for the year last Wednes- Wednesday that it lost $153 million day. U.S. at the end of the year. on revenue of $2.93 billion during TRW boosted its earnings expec- ArvinMeritor’s stock fell from the quarter. That’s compared with tations for the year to be between its close last Monday of $20.65 to its net income of $3 million on rev- $2.05 a share and $2.35 a share, up close Friday of $20.16. MAY 17, 2007 One-Day Interactive Learning Session enue of $2.96 billion during the from previous guidance of $1.85 a In a report issued Wednesday same quarter last year. share to $2.15 a share. David Leiker, equity analyst for 8:30 a.m. Registration Your company needs to hire passive candidate talent to The interiors, climate-control “In our view TRW is … a compa- Milwaukee-based Robert W. Baird & 9 a.m. – 5 p.m. (Lunch Provided) remain competitive, yet your recruiters are only trained to and electronics supplier said it Co., said ArvinMeritor’s earnings hire active candidates. This one-day training program will ny that performs consistently and The Westin Hotel in Southfield took $91 million in special charges. were weaker than he expected. Sponsored by: teach you the necessary tools and techniques required is arguably cheap in a market like to be successful at attracting and hiring the passive During the quarter Visteon sold this,” Ludtke said. “In terms of a Leiker also said that higher than candidate talent you want. its chassis businesses in Europe multiple of ’07 expected earnings, expected expenses cut into Arvin- and Brazil for $90 million in cash it is trading below its peers and we Meritor’s gross margins. Each participant will learn communication techniques, and the assumption of some debt. sales methodologies for passive recruiting success, and think it is better-positioned than Still, Leiker said ArvinMeritor’s Three plants in Europe have been how to counteract the behavior of passive candidates. its peers.” long-term outlook is positive due transferred while the fourth, in All attendees will receive a manual containing sample to the company’s restructuring Brazil, will be transferred during TRW’s stock closed Friday at scripts and other communication tools for every stage $37.35, up from its close Tuesday of plan. of the recruiting process. the second half of this year. Visteon also said that it ceased $37.04. Brent Snavely: (313) 446-0405; Limit 50. Register today by calling production on April 13 at its interi- Meanwhile, the outlook for Troy- [email protected] 734.432.6300 and ask for Carol Vecchio. ors plant in Chicago in response to production cuts by Ford. And in February it announced plans to close its climate plant in STREET TALK Connersville, Ind. The interiors plant had annual sales of about THIS WEEK’S STOCK TOTALS: 39 GAINERS, 34 LOSERS, 9 UNCHANGED $300 million and the climate plant CDB’S TOP PERFORMERS 5/4 4/27 PERCENT REAL ESTATE AUCTION had sales of about $360 million. CLOSE CLOSE CHANGE JUNE 6TH Despite those losses Visteon 1. Amerigon Inc. $15.24 $13.00 17.23 said it won more than $200 million 2. Clarkston Financial Corp. 13.70 12.10 13.22 STUNNING MODEL & 14 1-ACRE HOMESITES LUXURY LAKEFRONT HOME in new business during the first 10610 Deer Ridge Trail—Holly, MI 7935 Dixie Highway—Clarkston, MI 3. Masco Corp. 30.50 27.82 9.63 quarter. Homesites Originally 3,800 SF Ranch on 4. Meadowbrook Insurance Group 12.13 11.28 7.54 Priced to: $95,500 2.75 Acres Visteon’s management was Noble International Ltd. 17.82 16.95 5.13 OPENING BIDS 5. FROM: $45,000 All-Sports Deer Lake questioned multiple times on 6. Energy Conversion Devices Inc. 37.41 35.88 4.26 Wooded/Walk-Outs/Pond Views 1st-Fl. Master Bedroom Wednesday about its cost of goods, Incredible Views 7. Universal Truckload Services Inc. 23.24 22.29 4.26 Model Originally Priced: $479,900 which rose to $2.8 billion during 5 HOMESITES TO BE SOLD ABSOLUTE Chef’s Kitchen 8. Rockwell Medical Technologies Inc. 6.84 6.60 3.64 MINIMUM BID ON MODEL $295,000 the first quarter from $2.7 billion OPENING BID $525,000 Flagstar Bancorp Inc. 12.42 11.99 3.59 EXCELLENT FINANCING AVAILABLE last year. 9. 10. Rofin-Sinar Technologies Inc. 70.04 67.71 3.44 LENDER DIRECTS SALE Kirk Ludtke, senior vice presi- dent of Stamford, Conn.-based CRT 5/4 4/27 PERCENT INDUSTRIAL INVESTMENT OR USER OPPORTUNITY CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE 8100-8300 Lyndon Avenue—Detroit, MI Capital Group L.L.C., said his biggest concern about Visteon is how 1. Visteon Corp. $8.71 $9.61 -9.37 Light Industrial Complex quickly it is going through cash. 2. Pulte Homes Inc. 26.37 27.96 -5.69 7 Buildings with 89,000 SF Ludtke said the company has suffi- 3. TechTeam Global Inc. 12.73 13.36 -4.72 Includes 7 Vacant Parcels cient liquidity now, but must find 4. Perceptron Inc. 8.59 8.96 -4.13 4.6 Acres Total. a way to operate profitably by 5. Handleman Co. 7.22 7.51 -3.86 15 yr. NN Lease at 2009. 6. Origen Financial Inc. 7.05 7.25 -2.76 $60,000 Per Annum “We don’t expect there to be any 7. Taubman Centers Inc. 55.55 57.10 -2.72 MINIMUM BID $400,000 with Increases. liquidity problems anytime soon,” 8. ArvinMeritor Inc. 20.16 20.71 -2.66 Ludtke said. “But 2009 is not that 9. Kelly Services Inc. 28.80 29.47 -2.27 Call for Brochure, Open House Dates & Terms of Sale far away.” 10. General Motors Corp. 30.88 31.56 -2.16 Visteon’s stock closed Friday for INLAND REAL ESTATE AUCTIONS, INC. Source: Bloomberg News. From a list of publicly owned companies with headquarters the week at $8.71 from its close on in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading (248) 593-8790 Tuesday of $9.06. at less than $5 are not included. The Inland name and logo are registered trademarks being used under license. In Cooperation with McTevia Real Estate LLC, MI Broker Livonia-based TRW Automotive DBpageAD.qxd 1/3/200711:13AMPage1

© 2007 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved. Avery, Marks-A-Lot, the Crown Cap Design, and all other Avery brands are trademarks of, and used here under license from, Avery Dennison Corporation. DETROIT BUSINESS MAIN 05-07-07 A 6 CDB 5/4/2007 6:07 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS May 7, 2007 House bills would ban new landfills, slow expansion

LANSING — House De- cause it forces the dispos- ion HBs 4485 and 4486 are the latest Landfill owners and operators cant steps in addressing the state’s mocrats have approved al facilities in the state to pieces to be approved of House De- would be assessed the charge, but dumping problem and making measures that would ban incrementally build their mocrats’ anti-trash agenda. The they could pass it through to those Michigan less attractive as a trash new landfills and limit the facilities, instead of effi- bills, long a Democratic priority, who deliver or generate waste. repository. expansion of existing ciently constructing are designed to help stem the flow Money raised from the tipping fees But Horton said the landfill mea- landfills until 2012, over them,” said Tom Horton, of trash trucked into Michigan could go into a new recycling fund. sures erode local control over sol- objections that they would Midwest vice president of from Canada and other states. In a news release, Law said: “We id-waste planning and could “cre- lead to higher solid-waste public affairs for Waste In April, the House passed a bill have to stop the trashing of Michi- ate an inability for the disposal disposal costs. Management Inc. and vice to raise dumping fees. House Bill gan if we want to protect our com- companies to guarantee local com- Under the legislation, an president of the Michigan 4221, sponsored by Kathleen Law, munities and attract investments munities fixed rates over a long pe- existing landfill could ex- Waste Industries Associa- D-Gibraltar, would raise the state’s to the state. Banning new landfills riod of time. If we are not assured CAPITOL BRIEFINGS pand only if it has less than tion. They will “have to go per-ton dumping charge from 21 in Michigan, coupled with the in- that we are going to have space, we three years of remaining Amy Lane back and get a permit to cents to $7.50 — a change that the crease in the dumping charge, at- are not going to be able to assure capacity, and the maximum expan- build again and again and again,” Michigan Chamber of Commerce and tacks the economics of the trash them that their pricing is secure.” sion allowed would be for eight he said. Republicans said at the time repre- trade.” The bills now go to the state Sen- years of new capacity. House Bill 4047, sponsored by sented a $150 million tax increase Environmental groups have ate. “It will lead to higher costs be- Kate Ebli, D-Monroe, and compan- in residents and businesses. hailed the House actions as signifi- Groups decry Medicaid cuts Hospital officials, physicians INSIGHT and other health care providers are rallying to push lawmakers to solve the state’s budget crisis and reject Medicaid cuts that will oth- RESOURCES erwise take effect June 1. The action comes in the wake of last week’s announcement that the Granholm administration would VALUE cut Medicaid provider rates by 6 percent, to help the state balance its current-year budget. The reduc- KNOWLEDGE tion, which is expected to save the state $49 million in its general fund, would take effect June 1 un- less Gov. Jennifer Granholm and INNOVATION the Legislature reach a budget agreement to avert the cut. Health care leaders gathered ADVICE last week outside the Capitol to protest the reductions and warn of consequences, such as industry layoffs and loss of care critical to EXPERIENCE Michigan residents. Amy Lane: (517) 371-5355, LEADERSHIP [email protected] DIVERSITY Israeli agency to offer NSF audits Ann Arbor-based nonprofit NSF International has entered into an agreement with the Standards Institu- SPECIALISTS tion of Israel under which the Israeli agency will offer ISO audits and cer- tification services on behalf of NSF to companies in the country. LEGISLATION Under the agreement, NSF will license the Israeli agency to trans- late and distribute NSF/American WISDOM National Standards Institute stan- dards throughout the country. The Standards Institution will conduct certification audits for DETERMINATION drinking water devices, plastic and mechanical plumbing prod- + ucts, food equipment and bottled SOLUTIONS water in Israel. LAW — Sherri Begin IT’S MORE THAN JUST THE LAW.

At Miller Canfield, it’s about taking a real interest in your needs and having the expertise BANKRUPTCIES The following businesses filed for and resources to fulfill them. It’s caring about Chapter 7 or 11 protection in U.S. your business and building a real partnership. Bankruptcy Court in Detroit April 27- May 3. Under Chapter 11, a company It’s about looking ahead. Thinking creatively. files a reorganization plan that the Achieving success. Most of all, it's about you. court must approve. Chapter 7 in- volves total liquidation. ASC Inc., 18500 Walnut St., Southgate, voluntary Chapter 11. Assets and lia- bilities not available. Johnson Family Enterprises Corp., 13335 15 Mile Road, No. 256, Sterling Heights, voluntary Chapter 7. Assets and liabilities not available. Commerce Cos. L.L.C., 2770 Ridgeway Court Suite A, Walled Lake, voluntary MILLERCANFIELD.COM Chapter 7. Assets: $130; liabilities: MICHIGAN • MASSACHUSETTS • NEW YORK • FLORIDA • CANADA • POLAND $2,569,756.93. — compiled by Bowdeya Tweh DBpageAD.qxd 2/26/2007 12:15 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS May 7, 2007 OPINION Biz blueprint can save our auto jobs

he new forecast by a global automotive-research firm is dire: Vehicle development for more than 90 percent T of new cars and trucks will happen outside of the Unit- ed States by 2013. (See story, Page 1.) Some analysts debate that conclusion, but there’s no doubt that if Michigan wants to keep as much of its auto business as possible, it needs to act quickly and decisively. That’s why the Road to Renaissance blueprint unveiled last week is so important to the region’s future. This business-led effort created 11 initiatives over six spe- cific target areas at a startup cost approaching $70 million. Two of the 11 initiatives focus on building the region’s ca- pacity to be the global center for “mobility,” defined more broadly than simply designing and manufacturing cars and trucks. Details on all of the initiatives appear on Page 40. The blueprint is a year in the making, based on a review of existing economic studies and regional and international benchmarking. More than 650 business, civic and academic leaders participated in focus groups that shaped the tasks di- vided between six work groups. (Crain’s Publisher Mary LLETTERS Kramer co-chaired one of the task forces.) The meter’s running. We have enough data. Now it’s time to act. More on Warren’s blight fight

Editor: force our blight ordinances. So just Crain’s Detroit Business Time to end the Jobs Bank While I can appreciate the fact who really wants to stop blight, and welcomes letters to the editor. that Crain’s wrote its April 16 edi- who wants to play politics? The devil, as usual, is in the details. All letters will be considered for torial, “Warren blight court a vic- publication, provided they are Kathy Vogt Last week in this space, we applauded movement on the tim of politics,” after hearing only Warren City Council signed and do not defame Warren state’s budget and business tax impasse. Both the state House one side of the story, I would ap- individuals or organizations. and Senate have passed competing tax plans last week, and dif- preciate it if you would acknowl- Letters may be edited for length DMC should help Detroit edge that there are two sides. ferences between the two could be resolved by the end of this and clarity. Editor: Six council members all real- Write: Editor, Crain’s Detroit month. ized that the Administrative Hear- The CEO of the Detroit Medical But as we went to press last week, a major business associ- Business, 1155 Gratiot Ave., Center has a lot of nerve calling out ings Bureau — blight court — was Detroit, MI 48207-2997. ation, the Michigan Chamber of Commerce, was insisting that not working. the Barbara Ann Karmanos Cancer E-mail: [email protected] Institute for seeking to expand and tax credits for payroll included in the House plan also apply to While I can’t speak for my fel- serve its cancer patients by acquir- partners in professional firms. And other critics noted that the low council members, I can state that I have no hidden agenda in dis- this accomplishment. ing the St. John Riverview Hospital House plan would allow automakers to take a credit for wages solving the blight court. My only The 37th District Court and its (“Duggan calls sale of St. John paid to laid-off workers in the insanely uncompetitive Jobs agenda is doing what is best for the judges and court administrator Riverview ‘moral outrage,’ ” www. Bank program. citizens of Warren and stopping have promised to quickly enforce crainsdetroit.com, April 24). The We’re not as concerned about the partnerships, since part- any waste of dollars or resources. all violations coming to the court. DMC — under Mike Duggan’s prof- it-driven leadership — is expanding ners are actually owners as well as employees. The tax policy By eliminating the blight Until the ordinances are adopt- court, we will save more than ed to return enforcement of blight and constructing suburban sites should not support and encourage the Jobs Bank. The very no- $200,000 and will be able to use these violations to the 37th District Court, and it appears his true motive in at- tion of the Jobs Bank — paying employees who aren’t working savings to hire more inspectors for no violations can be written. tacking this venture is that it will — helped make Michigan a national joke in the business the property maintenance division. Deputy Mayor George Dimas had mean lower DMC profits. world, extinguishing any sympathy that might be expressed These inspectors are the ones who advised us that it would be five Perhaps instead of being the dri- ving force behind slick commer- for Southeast Michigan’s changing fortunes. issued over 4,000 warnings and months before the administration were responsible for the cleanups would forward these to council. I cials that promise speed over quali- If anything, the new state tax policy should dissuade the that transpired. I voted to fund this took the step of presenting these or- ty for ER patients, and the hiring of automakers and organized labor from even considering a re- division, but it was defeated. The dinances to council out of necessity. former news anchor talking heads newal of the Jobs Bank in contract talks this summer. blight court had nothing to do with We cannot wait five months to en- See Letters, Page 9

KEITH CRAIN: DTE CEO is fighting an uphill battle Just about everybody agrees gospel about nuclear en- nuclear. A lot of folks might disagree quickly that there are plenty of that we are facing an energy crisis. ergy. It can’t be a very Likewise, it would with me on this, and that’s OK. safe power plants that have been The magnitude might still be de- gratifying task. seem reasonable to as- The simple point is that we need to and are being built around the bated, but not many folks will tell I have long thought sume that commercial prioritize the use of various types world. you, “Don’t worry. We have all the that we have to include airplanes will have the of fuels in the United States. The U.S. can’t sit on the side- oil we’re ever going to need.” nuclear energy in our highest and best use for That means that we have to in- lines and ignore their viability. That’s simply not true. mix of fuels used to gen- petroleum. No one is se- clude nuclear power in our mix of Tony Earley has set out to try We might argue about global erate power. riously investigating al- viable fuels for all the energy uses and let folks understand the poten- warming, but everyone I know un- Because petroleum is ternative fuels for Boe- that our country has today. tial for nuclear energy in America. derstands that we will run out of a finite resource, it ing 747s, at least not petroleum sooner or later, and makes sense to priori- that I’m aware of. Rail- It’s time for us to stop being so It’s got to be one of the toughest we’d better start thinking about it tize who uses it and how roads could, once again, paranoid about nuclear power. It sales jobs any executive could ever today. it is used. For example, make good use of coal has an important place in our pow- take on, but it’s a story that’s got to Tony Earley, CEO of DTE Ener- it doesn’t make a lot of sense to use as fuel for their engines if they had er system. be told. gy Co., is taking the bull by the petroleum to fuel stationary power adequate filters or scrubbers to If anyone looks at either France Tony is a perfect spokesman for horns and is trying to spread the plants when you could use coal or clean the emissions. or China, they will discover very this tough assignment. DETROIT BUSINESS MAIN 05-07-07 A 41 CDB 5/4/2007 6:09 PM Page 1

May 7, 2007 CRAIN’S DETROIT BUSINESS Page 41

BRIEFLY :cZg\n8dc[ZgZcXZ Engineering Society, DTE to host reliance on nonrecurring bud- 2006, according getary measures to offset revenue to Eaton. energy-efficiency conference shortfalls.” Ratings on related In an inter- VcY:m]^W^i^dc'%%, state debt were also affected. view in April, =dhiZYWn 9I::cZg\nVcY The Engineering Society of Detroit I]Z:c\^cZZg^c\HdX^Zind[9Zigd^i and DTE Energy Co. are hosting a The downgrade comes after Fitch Wallace Tsuha, chairman and conference and exhibition May 15 Ratings lowered its outlook on 69K6C8>C<:C:G8>:C8N6C9EGD9J8I>K>IN CEO of Saturn, on advancing energy efficiency in Michigan from stable to negative said he decided May 15, 2007 · Novi, Michigan business. the week before. to sell the divi- The conference runs 7 a.m.-4:30 — Amy Lane sion because it p.m. at Rock Financial Showplace, Tsuha was not a core 46100 Grand River Ave., Novi. ArvinMeritor to close 13 plants part of Saturn’s Topics include sustainable de- business. Tsuha said the division velopment, energy conservation ArvinMeritor Inc. (NYSE: ARM) announced Tuesday that it would was profitable but declined to dis- and the state of Michigan’s energy close the terms of the sale. initiatives. restructure 13 plants, affecting 2,800 employees. Nine closings will Saturn is not interested in selling Registration is $65 for ESD mem- any more divisions, Tsuha said. be in North America while the oth- bers and $85 for nonmembers. It “We are down to our solenoids, B[WhdWXekjj^[bWj[ijj[Y^debe]_[ije[d^WdY[ er four will be in Europe, includ- Š costs $109 to register for the confer- electronics and core products [d[h]o[\ÓY_[dYoWdZfheZkYj_l_jo$ ing one in Frankfurt, Germany. ence and become an ESD member. now,” Tsuha said. Aside from Frankfurt, no locations >[WhX[ijfhWYj_Y[i\hech[Wb#b_\[YWi[ijkZ_[i$ To register, visit www.esd.org. — Brent Snavely Š Keynote speeches will be made were specified and a date for the Š FWhj_Y_fWj[_ded[#ed#ed[d[jmeha_d] by Doug Barlow, vice president, closings was not disclosed. Arvin- effehjkd_j_[im_j^[d[h]o_dZkijho[nf[hji$ paint, BMW Manufacturing Co. L.L.C., Meritor said the plant closings are EPrize CEO to speak May 15 I[[j^[bWj[ij_ddelWj_edi_d[d[h]o#[\ÓY_[dj and J. Peter Lark, chairman, Michi- expected to eventually save the “Creating a Region for Entrepre- Š jhWdifehjWj_ed$ gan Public Service Commission. A company $130 million to $140 mil- neurs and Innovators” is the topic continental breakfast and lunch lion annually. of a May 15 forum being presented will be served. ArvinMeritor also said it is by the Detroit Regional Chamber and The conference is part of Nation- freezing the company’s defined- Charter One Bank. IFEDIEH;:8O al Transportation Week, seven days benefit pension plan for 3,800 Josh Linkner, of activities aimed at increasing salaried and nonrepresented em- founder and the importance of transportation. ployees in the U.S. The freeze will CEO of Pleasant Ridge-based in- The event, hosted by the Detroit take place at the end of the year. teractive promo- ;D:EHI;:8O Metro Convention & Visitors Bureau, After the freeze dates, ArvinMeri- tions agency will now make Detroit its perma- tor said it will instead make addi- 6>6!6>8:!6H=G6:!6HB:"9Zigd^i!6LB6!86B!:B6::!:BJ! ePrize L.L.C., is nent home and will take place May tional contributions to its employ- the keynote ;VX^a^i^Zh:med!>:::!>9:6!>;B6!H8HB!HB:!JH<78"9Zigd^i 13-19. ees’ 401(k) plans. speaker. The fo- For more information about the — Brent Snavely rum will also conference, visit ww2.esd.org/ feature a panel Linkner events/energyconf.htm. For more Metaldyne to close of other area entrepreneurs. @ information about National Trans- Je[n^_X_jehWjj[dZ"YedjWYjJ_cMWba[hWjjmWba[h [iZ$eh] Farmington Hills plant The 9 a.m.-11:30 a.m. event is at eh(*.#)+)#&-)+"[nj$*''+$Tire. nounced plans to discontinue oper- He replaces Rose Adams, who ations at its Greenville, N.C., plant left the association in January to by the end of this year. That work become CEO of Gilda’s Club Metro is being moved to Metaldyne’s Detroit in Royal Oak. chassis plant in Greensboro, N.C. The American Lung Association The Greensboro plant is represent- of Michigan is in the process of ed by the UAW. merging with other affiliates in )RULQIRUPDWLRQFRQWDFW Ohio, Kentucky and Tennessee to Metaldyne, a manufacturer of form the American Lung Association powertrain, chassis and suspen- %UHQGDQ*HRUJH sion systems, is a subsidiary of of the Midland States. 7 Shizuoka, Japan-based Asahi Tec Maloni will oversee the merged EUHQGDQJHRUJH#FEUHFRP organization’s Michigan opera- Corp. Asahi Tec has annual rev- tions. enue of about $2.7 billion and em- — Sherri Begin ploys about 10,000 workers at 55 fa- cilities in 15 countries. /DUU\0LFKDHO Granholm outlines budget cuts; — Brent Snavely 7 ‡ 83 726)$9$,/$%/(21)/2256 ',9,6,%/( ODUU\PLFKDHO#FEUHFRP ‡ 1(:)5(6+%8,/'287:,7+83*5$'('),1,6+(6 Moody’s lowers credit rating Eaton buys division ‡ 648$5()((73(5)/225 0LFKDHO/\QFK Gov. Jennifer Granholm on April of Saturn Electronics ‡ :(//%(/2:0$5.(75$7(),;(')25%$/$1&(2) 30 moved ahead with plans to cut 7 1,1(<($57(50 money for Medicaid, while on the Cleveland-based Eaton Corp. said PLNHO\QFK#FEUHFRP same day Moody’s Investors Service last Wednesday that it has com- ‡ %($87,)8//<),1,6+('/2%%< $1'(;(&87,9()/225 lowered the credit rating on Michi- pleted its purchase of the fuel-com- ‡ (/(*$17%2$5'5220 gan’s $1.6 billion in general-obliga- ponents division of Saturn Electron- tion debt to Aa3 from Aa2 and re- ics & Engineering Inc. ‡ %8,/',1*6,*1$*($9$,/$%/( vised its outlook on the state from Eaton announced April 5 that it ‡ )851,785( (48,30(17 $9$,/$%/( stable to negative. had reached a agreement to pur- Moody’s said its downgrade re- chase the division. ‡ &29(5('5(6(59(''(&.3$5.,1* flected Michigan’s “depletion of fi- The fuel-components division of nancial reserves, reduced liquidi- Saturn employs about 100 people ty levels, deteriorating financial at a plant in Oxford and had sales and economic outlook, as well as a of approximately $28 million in DETROIT BUSINESS MAIN 05-07-07 A 42 CDB 5/4/2007 6:26 PM Page 1

Page 42 CRAIN’S DETROIT BUSINESS May 7, 2007 Live-Work: Developers put bets on condo-storefront combos ■ From Page 3

The space also is an ideal fit for a “I love fashion. I wanted a con- cause the employees work in client but more could be added if demand LIVE-WORK DEVELOPERS person who might have taken an dominium for an investment and I homes. The storefront location, is there. The site is to include a automotive buyout, he said. There wanted to open up a little bou- though, helps with marketing and wine bar to be operated by Big is Ferndale: Terra Land Group are zoning restrictions; for exam- tique.” Legato Point offered both, new client leads, Wygant said. The Rock owners Norman and Bonnie developing 62 units in four small LePage. The project, being con- projects following success at a 70- ple, no bars or car dealerships are and Kral moved in October. business plans to move there in unit project in Walled Lake called allowed. “You wake up, you come down- June. The 47 condominiums structed by partners Saroki, the Legato Point. “It really plays an incubator stairs and you do your business,” planned at The District Lofts in LePages and Birmingham-based Birmingham: Crosswinds role,” said Greeneisen. “You have she said. “Every month business is Birmingham, a project next door to Mosher, Dolan, Cataldo & Kelly, is di- Communities is developing 45 live- your home and you have your of- getting better; we have four high The Reserve and Big Rock Chophouse vided in two buildings with under- work units in Birmingham’s Eton fice.” schools in the area.” being developed by a group includ- ground parking. Street Station. This is next to at Heather Kral, 19, owner of Shannon Wygant, owner of the ing the owners of the restaurant The first units are scheduled to least four units of live-work Sparkling Elegance, a jewelry bou- southwest and north Oakland fran- and banquet site, also is planned open in early 2008; preconstruc- planned at The District Lofts. tique at the Walled Lake develop- chise of home health care service with a live-work component. tion work is under way and the Southgate and Novi: The Adco ment, said the site has worked out company Home Instead Senior Care, Victor Saroki, president of Victor sales center and model are open. plans 32 live-work units Group well for her startup business. Kral also opted for a unit in Walled Lake. Saroki & Associates P.C. and the ar- The developers have reserva- each at developments called tions on seven units. Prices for SouthTown and BrookTown. sells jewelry, primarily items The service has 55 caregivers but chitect for the project, said the de- priced under $30. doesn’t need major office space be- sign calls for four live-work units, The District Lofts range from the high $400,000s to high $700,000s. Next door, at the Eton Street Sta- tion development, a project that opened in 2003, Crosswinds Communi- ties scaled back the number of live- work units and replaced some of them with a design dubbed “artisan lofts.” These are smaller units with a smaller first-floor space. The larg- er live-work units have large store- front windows and separate en- trances for work and home. There are 45 live-work units planned, including 18 yet to be built as demand warrants. So far 26 have sold, said Allison Stark, marketing strategist for Cross- winds National. There are 28 arti- san lofts. “We’ve moved some things around a little but the concept did not change.” Stark said. “It’s a unique concept that works for a lot of people in Birmingham.” Prices range from $299,000 for the artisan lofts to more than $500,000 for the live-work units. Live-work residents include a law office, a sa- lon, a cosmetic dentist, a jewelry store, a yoga studio and a home-in- teriors boutique, Stark said. Brokers and developers say keeping the number of units de- signed for live-work modest is key. Dan Elsea, president, brokerage services of Southfield-based Real Es- tate One, said while live-work makes sense for accommodating some kinds of small entrepreneurs, it’s important to remember that the D10000 D5600 D3500 PT-DW7000 original idea dates back to small towns that might have only three or four examples in a given cluster. At Audio Visual Innovations, we carry the high quality, cutting edge “It’s a niche,” he said. “I think it’s very difficult to tell how deep AV equipment you need to enhance communication and improve the market is. It’s only for people who need that retail face.” productivity. With almost 30 years of experience and the latest In Southgate, demand for live- work units has not been as strong technologies, like our full line of hard-working Panasonic video as traditional condominium sales Professional Series but the SouthTown project at projectors, we can help you make a statement before saying a Allen Road just north of Northline Thursday, May 24 8:00am – 4:30pm Road still plans to add them down Find out more at aviinc.com/events/ single word. the road. “We have two people who are definitely interested when the Whether it’s your boardroom, conference room or training time comes,” said Ed Schlager, sales manager for The Adco Group, facilities, look to AVI for integrated audiovisual solutions that will the developer of the project along with DiMaria Homes. The group capture your audience’s imagination and streamline the exchange has sold 60 of a planned 460-unit development since models opened of information. a year ago. About 32 are designed as live-work, he said. The Adco Group also has a 250- unit development in Novi called 248.669.4286 • www.aviinc.com BrookTown which includes live- work units in the plan. Those live- 2605 East Oakley Park Rd. work units will probably be built first, Schlager said. Prices for the Walled Lake, MI 48390 Adco condominiums range from $140,000 to $220,000. Jennette Smith: (313) 446-0414, [email protected] DETROIT BUSINESS MAIN 05-07-07 A 43 CDB 5/4/2007 6:07 PM Page 1

May 7, 2007 CRAIN’S DETROIT BUSINESS Page 43 Patents: Experts divided on magnitude of effects of ruling ■ From Page 3 actual inventions and inventor litigation in 2005 to DriveSol World- Corp. agreed with the ruling. patents.” together, that’s not patentable.” rights, not incremental and obvi- wide Inc., a company created for “Patent laws give certain rights Hal Milton, now of counsel at Milton submitted a brief in the ous changes, he said. that purpose by Boca Raton, Fla.- to inventors, but also protect Dickinson Wright P.L.L.C. and run- KSR/Teleflex case arguing that The U.S. Patent and Trademark Of- based Sun Capital Partners Inc. rights of any person or business to ning its patent intern program, ar- there need to be strong reasons for fice moved quickly, issuing a mem- The Teleflex division lost the freely use known technology and gues that the ruling really doesn’t granting a patent simply for com- orandum on May 3 highlighting el- case in U.S. District Court but won variations of known technology “change the law all that much.” bining “various teachings in the ements of the court ruling and on appeal to the U.S. Court of Ap- that are not patent-worthy,” said Milton in the late 1990s authored art,” as patent experts call it. stressing that examiners need to peals for the Federal Circuit, Luke Simon of the GM legal staff. the Teleflex patent claim stricken “Look, the world has changed. “identify the reason why a person whose jurisdiction includes patent “In this case, the Supreme Court by the Supreme Court while he With the Internet one of the places of ordinary skill in the art would appeals. struck down a rigid approach to was a Howard & Howard patent at- that engineers can go for informa- have combined prior art elements The Supreme Court overturned patentability and, in effect, raised torney. tion, don’t tell me that you can in the manner claimed.” the Court of Appeals decision, the bar defining a patentable in- “What is new is still going to be patent something you put together Rodger Young, lead trial lawyer agreeing with KSR’s argument vention. In doing so, it addressed patented,” he said. “What is not is by Googling it.” for Teleflex and founding partner of Southfield-based Young & Susser that the Teleflex patents were on an interpretation of patent law when older things are combined. Robert Ankeny: (313) 446-0404, P.C., said Teleflex was disappoint- combinations of existing inven- blamed for part of the recent wave We’re back to a lot of the tests used [email protected] ed in the tions, not true innovations. of costly and complex patent litiga- historically — if someone is just Andrew Dietderich: (313) 446- Supreme Court In a statement, General Motors tion relying on questionable picking and choosing things to put 0315, [email protected] decision. “We respect the Court’s deci- sion. But we felt strongly that a material issue of fact existed. … “The focus Young away from what the patentee was trying to achieve, and toward what She knows what things are worth. is ‘obvious’ to a hypothetical ‘per- son having ordinary skill in the Your charitable trust will remind her what things are worthwhile. art,’ is an interesting perspective. However, it is fraught with a ‘you will know it when you see it’ sub- jectivity standard,” Young said. Some patent lawyers fear the Supreme Court decision might bring thousands of challenges to invalidate patents already issued. Mark Levine, patent attorney at Novi-based firm Quinn Law Group P.L.L.C., said costs could go up as companies will need to have stronger cases to obtain patents. “Without clarity and uniformity, an ambiguous and indeterminate opinion will most likely lead to lack of uniform application of the law in the courtroom and the U.S. Patent Office, creating uncertainty, and increased costs to patent applicants and assignees,” Levine said. “Those costs are passed on to the consuming public.” Sam Haidle, a patent attorney with Bloomfield Hills-based Howard & Howard P.C., said the lack of uniformity is going to cause problems. “Just because it’s common sense to one person doesn’t mean it’s common sense to someone else,” Haidle said. The dispute in the case began more than five years ago when General Motors Corp. signed a con- tract with KSR to supply ad- justable pedal systems for its 2003 Chevrolet and GMC light trucks. KSR is based in Ontario, with a U.S. headquarters in Southfield. GM was looking for an ad- justable pedal system that could fit For higher net worth families and charitable trusts in contrast to current drivers of different heights. The foundations, a charitable trust is one of automaker also wanted the pedal gifts; understanding charitable trust system to send an electronic signal the most valuable tools in an overall alternatives; options regarding trust to change engine speed, eliminat- wealth management plan. payout; and identifying a charitable ing the need for a mechanical ca- trust strategy that meets your wealth ble. To give you an idea of how, Mark planning objectives. When Pennsylvania-based Tele- Jannott and Greenleaf Trust cordially flex, which makes custom-engi- invite you to an informative seminar, The seminar will take place June 21 at neered cable controls, electronic "Leaving a Legacy: The Power of throttle controls and other con- The Townsend Hotel in Birmingham. trols, learned of the deal, it con- CharitableTrusts." tended that its patents protected If you would like to attend, or for all combinations of an adjustable Topics will include: tangible benefits to more information, call 248.343.9000 Financial Security from Generation to Generation pedal and electronic sensor and donor and donee; reasons to consider by June 15. Seating is limited. filed suit in U.S. District Court in Detroit against KSR. Teleflex sold the Troy-based auto pedal division involved in the 122 concord road, suite 102, bloomfield hills, mi 48304 www.greenleaftrust.com 248.343.9000 248.417.5527 DETROIT BUSINESS MAIN 05-07-07 A 44 CDB 5/4/2007 6:36 PM Page 1

Page 44 CRAIN’S DETROIT BUSINESS May 7, 2007 Tax: Automakers could get credit for paying laid-off workers ■ From Page 1 the compensation credit would not Chuck Hadden, vice president of week said the compensation credit apply to money paid to partners in THE PLANS UP CLOSE government affairs for the Michi- is not nearly as beneficial as other businesses organized as partner- gan Manufacturers Association, said tax relief in the Democratic plan, House Democratic business-tax plan: ■ Base is a 1.5 percent tax on ships, including the distinction between partner- such as that for personal-property law firms and ■ Full replacement of $1.9 billion in income and 0.54 percent tax on ships and corporations is justified. tax and research and development. accounting single-business-tax revenue. modified gross receipts, defined as “Partners are owners. It’s a dif- sales minus purchases of tangible firms. ■ Base is a 6.95 percent tax on ferent situation than if you’re pay- Fred Hoffman, state relations di- property from other businesses. The Michigan business income and 0.49 percent ing for an employee. It’s not the rector for DaimlerChrysler AG, said ■ Businesses with gross receipts Chamber of Com- tax on net worth, which is assets same as employee compensation,” “much more significant to us is the under $350,000 would pay no tax, merce, while sup- minus liabilities. he said. R&D tax credit, because that gives ■ Businesses under $350,000 in and those with gross receipts porting the De- between $350,000 and $15 million In fact, the language defining us more incentive to do R&D here mocrats’ goal of gross receipts would pay no tax; compensation isn’t new; it was tak- those between $350,000 and could choose between the income as opposed to somewhere else.” In encouraging $700,000 would pay graduated tax or modified gross receipts tax. en from the existing SBT and is addition, he said, the personal- businesses to ■ also used in the Senate Republican Kinley rate. Personal-property-tax reduction of property tax “is where we’re way add employees about $87 million. New industrial plan. But the difference in the ■ Businesses with less than $10 out of whack, in terms of the states in Michigan, sees that as an issue. personal property would be exempt House plan is that compensation million in gross receipts, and no where we do business.” “The compensation credit … is more than $115,000 in income for from personal-property tax, and — including automakers’ pay- not available to all job providers in a single owner, could pay an industrial and commercial property ments to laid-off workers in their Charlie Pryde, manager of gov- Michigan,” said Tricia Kinley, the alternative tax of 1.8 percent on acquired in the past five years United Auto Workers-negotiated jobs ernmental affairs at Ford Motor Co., would receive a 25 percent chamber’s director of tax policy adjusted business income. personal-property-tax credit. bank and employers’ “legacy said that among all the credits, the ■ and economic development. “If not Personal-property-tax cut of more Telecommunications companies costs” of retiree health care and compensation credit “is probably corrected, it flies in the face of the than $900 million. Commercial and also would get tax relief. pensions — would be eligible for a the least important to us.” industrial property would be exempt whole selling point of their plan, ■ Tax credits for Michigan- tax credit. Under the current SBT, However, he said, providing a which is to reward people for from state’s share of property-tax such compensation costs are taxed headquartered businesses and tax credit for employers’ retiree putting jobs and property here. collections, and manufacturers also as part of the SBT’s base. could get a 50 percent refundable restaurants that adopt no-smoking “These partnerships can do two policies. To Kelly Services Inc., the credit health care and pension costs “re- credit on the rest of their personal wards employers that provide bet- things: They can move their opera- property tax. Telecommunications ■ An “entrepreneurial exemption” helps remedy what Kelly has long tions to a more tax-friendly state, companies also would get tax relief. for companies with up to $25 argued was a central flaw of the ter benefits and helps their em- or they can set themselves up as a ■ Tax credits for instate business million in gross receipts. Those SBT: That it taxes compensation ployees. If those benefits aren’t corporation and get a credit. But investment, compensation, and companies, in any year that they and therefore “was a tax on jobs,” provided, then people are left with- why make them go through the research and development. invest at least $1.25 million and said Jim McIntire, Kelly’s vice out them and other things have to hoops and hurdles of doing that,” create 20 jobs, would be exempt president for public affairs. Senate Republican business-tax plan: pick up the slack.” when the plan could be amended to from taxes and could continue to be “Kelly is in the jobs business. ■ As for automakers’ jobs bank allow all job providers to qualify, Approximate $600 million cut in exempt for up to five years, if they Therefore, as a result of the SBT, single-business-tax revenue. create at least 20 jobs a year. payments, the effect of any tax Kinley said. we had a state tax liability here in House Tax Policy Committee Michigan that was grossly dispro- credit is likely to diminish as jobs Chairman State Bieda, D-Warren, also trying to deal with the para- ing higher credits in one part of portionate to our state tax burden bank numbers continue to shrink. said Democrats are open to consid- meters of the tax structure itself, the plan could mean raising rates in any other state,” McIntire said. Amy Lane: (517) 371-5355, alane@ ering changes. But, he said, “we’re and the money it raises.” Provid- in another, he said. Officials at auto companies last crain.com Survey: Businesses hiring or holding Panel: Partnerships, history can ■ From Page 3 43 percent of businesses Still, Suggs said she recently business for the next six months. aid waterfront redevelopment statewide say their business out- gave raises to her four employees, The 14-year-old firm provides look for the next six months is one of which was hired last technical writing services for good, down from 51 percent in No- month to help “scrounge up more auto companies. BY JENNETTE SMITH front RiverWalk.” vember. business.” Sharp, who is the only full-time CRAIN’S DETROIT BUSINESS Other projects on the Detroit Sarpolus said the survey num- employee, said he works with two riverfront include the Tri-Centennial 28 percent of businesses plan Creative public-private partner- bers — particularly on hiring, part-time freelancers and might State Park; General Motors Corp.’s to increase wages in the next six ships and an eye toward local cul- wages and benefits — show many soon be able to hire another or mixed-use project; new housing led months, and 29 percent expect to ture and history are key to success- add hours for the existing free- by Dave Bing, Jerome Bettis and add or increase employee bene- Michigan businesses are growing ful waterfront redevelopment others; and a new Port Authority ter- fits. or holding their ground despite lancers. But Sharp said he is only efforts, according to panelists who minal and dock. 54 percent of businesses plan concerns about the economy. optimistic because the company spoke at the CREW Midwest Regional to spend money on employee edu- “If things are so bad, how can has begun seeking business out- Conference on Friday. In Minneapolis, a collaboration of cation and training, compared any business increase wages?” side the state. At the Friday morning session of city leaders, developers and other with 50 percent in November. Sarpolus said. “The general outlook for the the conference organized by Com- stakeholders encouraged $300 mil- Responses from metro Detroit “We have to ignore what people economy in Michigan remains mercial Real Estate Women Detroit, at- lion in reinvestment such as 700 businesses tended to track think and feel and look at what dismal,” Sharp said. “These com- tendees heard case studies about units of new housing and new assets statewide numbers. About 79 per- they’re doing,” he added. panies that are finding some de- Detroit, Minneapolis, small commu- around the historic Mill City area cent of local companies say Suggs said increasing her em- gree of optimism are those that nities in Illinois and Wisconsin, and and the preservation of a local land- they’re dissatisfied with the state ployees’ pay was more about help- are looking outside of Michigan.” the Muskoka, Ontario, area. mark, the Stone Arch Bridge. economy, up from 72 percent in ing them make a living wage than Murray “Gene” Smith, owner The conference at the Detroit “You really need to capitalize on November. Meanwhile, 9 percent optimism about her business out- of Pinnacle Engineering Co. in Man- Marriott Renaissance Center at- your historic and natural ameni- plan to hire more employees and look. chester, said his company’s order tracted 210 real estate professionals ties,” said Linda Donaldson, part- 67 percent plan to maintain “With the gas prices, how can backlog is down and business has from primarily the Midwest. The ner at Brighton Development Group of staffing levels. anybody survive on lower been softer than usual. The com- waterfront panel was one highlight Minneapolis. About 29 percent of Southeast wages?” she said. pany, which opened 40 years ago, of the three-day conference. The district of Muskoka, Ontario, Michigan businesses plan to in- Michael Shore, chief communi- has about 20 employees and does- Faye Alexander Nelson, presi- area is already noted for a museum crease wages, and 29 percent said cations officer with the Michigan n’t plan to hire in the near future. dent and CEO of the Detroit Riverfront and events celebrating wooden they will add employee benefits or Economic Development Corp., said it “We’re just trying to hold on,” Conservancy, out- boats, but the town of Gravenhurst increase their level of benefits. makes sense that some companies said Smith, who reported annual lined how seed was able to add a new hotel and con- Among those is Christa’s Ponds remain negative about the econo- company sales between $2 million money from the dominiums, high-end restaurants and Gardens Inc. in Washington my despite the fact that some are and $3 million last year. Kresge Foundation and new common areas at Muskoka Township, which responded to growing. Along with general operating is being used as a Wharf. the survey. President Christa The auto industry downturn of- pressures, Smith said his busi- catalyst to pro- Similarly, Rick Hitchcock, presi- Suggs said business has been dif- ten has taken focus away from ness has been negatively affected mote $1 billion in dent of Hitchcock Design Group in ficult for her landscaping compa- good news in the state, such as by Michigan’s business taxes. He economic devel- Chicago, highlighted Elgin, Ill., ny because people have less dis- last week’s announcement that believes small companies such as opment on the Neenah, Wis., and Naperville, Ill. In cretionary income to spend on Midland-based Hemlock Semicon- his will continue to struggle as riverfront each case, stakeholders and unique her services. In fact, Suggs plans ductor Corp. will invest up to $1 bil- the state’s economy sorts itself through public resources are correctly aligned, he to retire in a year. lion and add up to 250 jobs to ex- out. Nelson and private in- said. “I’m quitting the business sim- pand a plant in Saginaw County. “We’re the little guy that gets vestment. “You’ve got to remember this ply because I work too many Robert Sharp, president of lost in the shuffle of the state’s “It was a real tough situation for broad array of things that make hours for too little pay,” said Sug- Rochester-based Automotive Mar- business,” Smith said. our community,” she said. “There places special,” he said. gs, who started her company in keting Services Inc., said he is Sheena Harrison: (313) 446-0325, was no public access; now we’re 80 Jennette Smith: (313) 446-0414, 1989. “guardedly optimistic” about his [email protected] percent complete on the east river- [email protected] DETROIT BUSINESS MAIN 05-07-07 A 45 CDB 5/4/2007 6:08 PM Page 1

May 7, 2007 CRAIN’S DETROIT BUSINESS Page 45 SSOE: Architecture firm targets state for expansion www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or strong,” Damon said, estimating said. While Michigan’s economy those offices we often share work- “Having a local architect/engi- [email protected] ASSOCIATE PUBLISHER Christopher Crain, (313) retail and health care as 25 percent faces challenges, it has proven to loads to balance economic trends neer is always beneficial when 446-1645 or [email protected] of SSOE’s business. About 20 em- be a great talent center for the con- and, likewise, project trends across you’re doing these large building EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] ployees will be added this year in tracts SSOE has companywide. the board,” said Paul Urbanek, di- programs,” Smith said. “It just DEPUTY MANAGING EDITOR Michael Lee, (313) Troy, the company estimates. “There is great work happening rector of design and vice president makes it a lot easier to run the pro- 446-0416 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Michelle The other two SSOE offices are in Michigan,” he said. Recruitment at SmithGroup. The Detroit office ject.” Martinez, (313) 446-1622 or in Portage and Midland, which em- from the West Coast or other loca- has 180 employees and the firm has The firm is increasingly ventur- [email protected] BUSINESS LIVES EDITOR Shawn Selby, (313) ploy a combined 47 people and spe- tions can be a challenge, but local notable health care projects such ing into new sectors, such as biofu- 446-1654 or [email protected] cialize in industrial process pro- quality of life and a pool of talented as a Memphis, Tenn., patient care els projects, and efforts that help GRAPHICS EDITOR Nancy Clark, (313) 446-1608 jects for clients such as Dow people with Detroit roots who seek and research project for St. Jude clients save time or money by im- or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 Chemical and Hemlock Semiconduc- to return can help, he said. Children’s Hospital and the Chal- proving processes. Consulting to or [email protected] tor Corp., a manufacturer of poly- Detroit-based SmithGroup Inc. mers P. Wylie Outpatient Veterans the food industry is another focus DATA EDITOR Anne Marks, (313) 446-0418 or [email protected] crystalline silicon that plans an ex- said employees in Michigan often Clinic in Columbus, Ohio. for many Michigan SSOE employ- WEB EDITOR Dan Eizans, (313) 446-0473 or pansion in Saginaw County. contribute to projects in markets Gerald Smith, manager of con- ees with clients such as ConAgra [email protected] WEB DESIGNER/PRODUCER Ai-Ting Huang, SSOE reported 2006 revenue of with growth in overall construc- struction management for Mt. Foods and Hershey. (313) 446-0403, [email protected] $90 million and the company is tion like the South and Southeast. Clemens Regional Medical Center, “It’s not just about delivering EDITORIAL SUPPORT Anita Duncan, (313) projecting a 20 percent increase for In some cases, employees move said SSOE has been hired as a lead construction documents any- 446-0329; Joanne Scharich, (313) 446-0419 NEWSROOM (313) 446-0329, FAX (313) 446- 2007. The Troy office reported 2006 temporarily to offices in need of designer for multiple projects, in- more,” Damon said. “What you are 1687 TIP LINE (313) 446-6766 revenue of $36 million and expects staffing for larger projects. cluding a $51 million surgical cen- bringing to this really helps that REPORTERS a similar increase. “Fortunately, SmithGroup’s 10 ter and the $15 million permanent client succeed.” Robert Ankeny: Covers the city of Detroit, Wayne “The bulk of our business in still national offices have projects Ted B. Wahby Cancer Center, to Jennette Smith: (313) 446-0414, County government, and law. (313) 446-0404 or in the Great Lakes region,” Damon throughout the country, and in begin construction this summer. [email protected] [email protected]. Sherri Begin: Covers nonprofits and education. (313) 446-1694 or [email protected] Andrew Dietderich: Covers health care, transportation, international business and biotech. (313) 446-0315 or [email protected]. Sheena Harrison: Covers small business, retail Autos: and nonautomotive manufacturing. (313) 446- Will decision-making stay in Detroit area? 0325 or [email protected]. Tom Henderson: Covers banking, finance and ■ From Page 1 technology. (313) 446-0337 or [email protected]. While the presentation was geared toward where the development cycle as there should be,” Manganello said an e-mail. Bill Shea: Covers media, advertising and marketing, entertainment, the business of sports, suppliers, the forecast also exposed powerful is, that’s where our engineer- “But, does that signal the demise of Michigan and Livingston and Washtenaw counties. (313) global automotive trends that are challenging ing awards are given, that’s as a global hub? Not if we do things right. That 446-1626 or [email protected] Jennette Smith: Covers real estate and Michigan as it seeks to remain the decision- where we must be.” is what MichAuto is trying to bring focus to.” hospitality. (313) 446-0414 or making center of the automotive industry. For several years Michigan Ken Rogers, executive director of Automation [email protected]. Brent Snavely: Covers auto suppliers, steel and “As the Detroit Three continue to globalize development officials have at- Alley, is less concerned. restaurants. (313) 446-0405 or their development efforts, the new investment tempted to blunt the state’s di- He said there are many ex- [email protected]. by Toyota, Hyundai and Nissan in Michigan is minishing manufacturing amples of auto companies in- LANSING BUREAU Amy Lane: Covers business issues at the Capitol, welcome but will not completely replace the jobs by positioning the state vesting in research and de- telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or shifted volume,” Robinet said in an e-mail to as the brains of the automo- velopment in Michigan in 115 W. Allegan, Suite 220, Lansing 48933. Crain’s. “An additional effect is that suppliers tive industry, or the place recent years, including: Leuliette ADVERTISING with development resources to support the De- where functions such as re- Toyota Motor Co.’s deci- ADVERTISING DIRECTOR Marla Downs, (313) troit Three in Michigan may have to shift some search and design and engineering will remain. sion in 2005 to invest $150 mil- 446-6032 or [email protected] of these to other regions.” Doug Rothwell, president of Detroit Renais- lion to buy nearly 700 acres in SALES INQUIRIES: (313) 446-6052; FAX (313) According to Robinet, primary vehicle devel- sance Inc., acknowledged that the global prod- York Township to create a re- 393-0997 NEW BUSINESS DEVELOPMENT MANAGER Cathy opment includes design decisions surrounding uct development trends outlined by Robinet search and development cen- Rogers Ross, (313) 446-0307, [email protected] a vehicle’s structure, chassis, engine, power- pose a challenge, but said it is a challenge ter that will employ 400 by ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, train and building process. Michigan can meet. 2010, adding to the more than 500 employees Dale Smolinski By 2013, Robinet forecasts that the volume of “I think that it’s no surprise that the indus- Toyota already has in the Ann Arbor area. WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 Asian developed vehicles will grow by 54 per- try would need to go to where the market is, A hybrid vehicle development center CLASSIFIED MANAGER Melissa McKay, (313) cent. At the same time, output of North Ameri- and increasingly … they will try to make sure launched in 2005 in Troy that is a partnership 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Christina can-developed vehicles is expected to fall by 40 they are in tune with those markets …which between General Motors Corp., DaimlerChrysler AG Jaranowski, (313) 446-1655 percent by 2013. means by definition they will be increasing and BMW that is developing a hybrid transmis- MARKETING DIRECTOR Michelle Minor Robinet said he believes that North America their engineering design and capabilities in sion called Two Mode, according to sister publi- EVENTS MANAGER Nicole Wiedling is becoming an automotive market that will those markets,” Rothwell said. cation Automotive News. MARKETING ASSISTANT Jennifer Dunn MARKETING ARTIST Sylvia Kolaski mostly conduct secondary vehicle develop- Detroit Renaissance, a nonprofit CEO coun- Hyundai Motor Co.’s 190,000-square-foot, $117 SALES SUPPORT Suzanne Janik, Andrea ment. For instance, General Motors Corp.’s 2008 cil representing the region’s major employers, million research and development center that Beckham, YahNica Crawford Saturn Vue is basically identical to Europe’s unveiled details of an economic development opened in the fall of 2005. CIRCULATION Candice Yopp, Manager. PRODUCTION MANAGER Wendy Kobylarz five-seat Opel Antara and Australia’s Holden plan last Thursday aimed at transforming the “I think we have engineering centers that are PRODUCTION SUPERVISOR Larry Williams, Captiva, according to sister publication Auto- economy in Southeast, Michigan. second to none in the world,” Rogers said. “To (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, motive News, and was mostly developed in Ko- One of the 11 strategies Detroit Renaissance take it for granted would be a mistake … but the (888) 909-9111 rea with other work occurring in Europe and unveiled calls for the creation of a Mobility In- water is not out of the tub for Southeastern TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information North America. The Vue was then adapted for novation Center that would establish a re- Michigan.” Center at [email protected]. the North American market. search and development cooperative that pro- David Cole, chairman of the Center for Auto- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY “I feel vehicle development is changing in vides research and development space for small motive Research in Ann Arbor, agrees that the CRAIN COMMUNICATIONS INC. Detroit, and probably is moving more toward a and medium-sized companies. (For more infor- dynamics are changing, but argues that a lot of CHAIRMAN Keith E. Crain PRESIDENT Rance Crain market for finished vehicle development,” mation, see Page 40). product development will remain in Michigan. SECRETARY Merrilee Crain Robinet said. Rothwell also points out that the automotive “What everybody is doing is divvying up the TREASURER Mary Kay Crain Robert Chwalik, principal of Waltham, industry as a whole is growing. Indeed, CSM (development) task on a worldwide basis,” Cole Executive Vice President/Operations William A. Morrow Mass.-based PRTM Management Consultants, projects that the global automotive industry said. Group Vice President/Technology, echoed Robinet’s conclusions when he present- will grow from 62 million cars and light trucks Under the old model, automakers designed Manufacturing, Circulation Robert C. Adams ed the results of a survey of 50 U.S.-based auto- this year to more than 80 million cars and and built entirely new vehicles in a single re- Vice President/Production & Manufacturing motive suppliers. PRTM’s survey revealed that trucks by 2013. gion, Cole said. Now automakers such as GM Dave Kamis Corporate Director/Circulation most suppliers project little if any growth in en- “What we have to do is just make sure we coordinate development on a global basis and Patrick Sheposh gineering employment in North America. In- grab a percentage of that market share,” Roth- common parts are used for different models. G.D. Crain Jr. Founder (1885-1973) stead, they are planning to hire more engineers well said. “We are not going to grab all of it, but, Even Robinet and Paul Haelterman, vice Mrs. G.D. Crain Jr. Chairman (1911-1996) in talent-rich countries such as India and in re- nevertheless, the depth of auto engineering tal- president of CSM’s global advisory services, EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) gions with lower labor and operating costs. ent in Southeast Michigan is so great that we say Michigan has an opportunity to grab addi- 446-6000 Chwalik said suppliers surveyed expect to in- should be able to provide some of the services tional R&D projects, especially as Indian an Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out crease their engineering staffs by 10 percent to that those global markets need.” Chinese companies look to establish a presence of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state 20 percent per year in India and China between Thomas Manganello, a in North America. rate for surface mail. this year and 2011. founder of a new automotive “There is still going to be a ton of product de- Reprints: For inquiries call the reprints department at: (800) 494-9051, Ext. 144 , or at Tim Leuliette, who recently became co-chair- industry association called velopment going on here, and this is the only [email protected] man and co-CEO of Asahi Tec Corp., referred to MichAuto, said Robinet’s fore- place in the world where everybody is in this CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is CSM’s product development forecasts in a casts underscore the need for one area,” Haelterman said. published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. speech in April to illustrate why Metaldyne Corp. groups to work together to But to win new projects, Haelterman said, the Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send agreed to be acquired by Asahi Tec in January. preserve Michigan’s automo- state’s economic development agencies and as- address changes to CRAIN’S DETROIT BUSINESS, Leuliette said $1.2 billion acquisition quickly tive industry. sociations need to have a coordinated message Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in boosted Metaldyne’s Asian presence and access “As China and India ex- that is targeted to suppliers and automakers U.S.A. Entire contents copyright 2007 by Crain to decision-makers there. plode there will be major (re- who are seeking to expand in North America. Communications Inc. All rights reserved. “As a supplier, we need to put our assets search and design) and de- Brent Snavely: (313) 446-0405, Reproduction or use of editorial content in any where the action is,” Leuliette said. “That’s sign work in those locations, Manganello [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 05-07-07 A 46 CDB 5/4/2007 6:49 PM Page 1

Page 46 CRAIN’S DETROIT BUSINESS May 7, 2007 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF APRIL 28-MAY 4

basketball comedy called “Semi-Pro” about a minor- Tower files league team in Flint in the A new twist 1970s, brought back fond memories for Chris Rizik, co- reorg plan; founder and board director of Ann Arbor-based Ardesta on the classic L.L.C. and chairman of De- Cerberus plans troit-based NextEnergy. As a boy, he was a spotter for the announcer at the to acquire real minor-league team in pickup line? Flint. Farrell’s character is ower Automotive Inc. owner, coach and player of said Tuesday that it a team called the Tropics. T has filed a reorgani- Web site for hipsters profile of the information The Watermark on the Detroit riverfront. Rizik’s team was called the zation plan with U.S. Bank- wary of who’s lurk- chief of tomorrow, accord- Pros and played in the Conti- ruptcy Court in New York A ing behind the on- ing to a recent study co-au- Ex-Kmart HQ, riverfront developments announced nental Basketball Association and said Cerberus Capital line profiles posted on such thored by a professor in in the 1972-73 season and Management L.P. filed an as- Two major real estate projects were announced this networking Web sites as Michigan State University’s Eli the start of the 1973-74 sea- set-purchase agreement. week: a $300 million redevelopment of the former Kmart www.myspace.com Broad College of Business. son before folding because Cerberus, which is also Corp. headquarters in Troy and a $60 million project on launched May 1 in Ann Ar- After five years of re- of a lack of attendance. vying to acquire the the Detroit riverfront. bor. search, MSU professor Val- Rizik’s dad, Mike, was Chrysler Group, revealed The Pavilions of Troy calls for nearly 500,000 square The brainchild of Alex labh Sambamurthy and Ritu one of the plans in late March to pur- feet of retail and Lubyansky, a recent Universi- Agarwal from the University co-founders chase Tower’s assets for restaurants, 750 ty of Michigan graduate, of Maryland concluded that of the team. about $1 billion. residential units, www.barcardz.com is information chiefs will When the Tower said it expects to a hotel and office aimed at promoting face-to- continue to serve as utility original an- close a sale by July 31. Other space. face contact. Here’s how it directors, educators and in- nouncer, interested buyers can sub- The 40-acre site works. A good-looking guy formation stewards, but Flint May- mit competing bids until on Big Beaver also be expected to take on at a club catches your eye, or Don June 20. Road is owned by newer, more visible roles. you chat and he passes you Cronin, had Tower said Cerberus’ New York City in- “Tomorrow’s his BarCard, which in- to quit be- agreement provides money vestment firm CIO will in- cludes his name, photo- cause of ill- to pay secured claims, obli- BlackRock Inc. and is being developed by Reston, Va.- creasingly Rizik graph and barcardz.com ness, Mike gations under the line of based Richardson Development Group Inc. and Cincinnati- be asked code. If, in the light of day, took over the credit provided after it filed based Boorn Partners. The Rossetti Group, based in South- to be the you’re still interested in microphone. for Chapter 11, second-lien field, is the project’s lead architect. face of pursuing a friendship or “My dad loan creditors, administra- The plan is centered on a pavilion that would include the or- adding him to your bar- knew virtu- tive claims and the compa- a skating rink and space for outdoor community events. gani- cardz social network, you ally nothing ny’s pension plan. Some un- Hunter Richardson, principal of Richardson Develop- zation can log on and send him a about bas- secured creditors would ment Group, said the developers hope to begin the first to cus- request. ketball,” receive partial payments. phase by mid-2008. tomers ■ By the same token, he said Rizik. Detroit industrialist Dave Bing unveiled details of and can decide whether to fol- “But he be- The Watermark, a $60 million luxury residential and other ON THE MOVE low up on your request or came a fan fa- mixed-use development to be started this year by his Sp- business chuck the whole idea. vorite for the William Hartman to pres- ingarn Development L.L.C. partners,” Lubyansky says possible sayings he made ident, Citizens Republic Ban- The project, on 2.2 acres on Atwater Street west of Ch- the re- revenue streams include up during the game.” corp, Flint, remaining CEO, ene Park, includes a nine-story tower and low-level online ads, ads on the back searchers said in a effective May 31. He re- buildings, with about 112 units in all. of the BarCard, fees for bars release. ITS IECES places retiring president Esquire Properties in Detroit is handling sales. Prices and restaurants for site Developing political acu- B & P and COO Dana Cluckey. are expected to range from $300,000 to $1 million-plus for men is also a must, the re- placement and licensing for Wound Menswear, a John Collins to the new the residential units, which are to be offered at a pre- searchers said. a clothing line. clothing line started by co- position of managing direc- sale event May 19. Completion is targeted for May 2009. The professors published The newly launched site owners Sarah Lurtz and tor and general counsel, Al- Investors in the project include: Roger Penske; DTE En- the article, “A Roadmap for ixPartners ergy Corp. Chairman and CEO Anthony Early Jr.; Gregory had “several hundred” reg- Sarah Lapinski, will debut its , Southfield, from senior vice president, gen- Jackson, founder, Prestige Automotive Group; and spouses istrants as of Friday after- Effective CIOs” in a recent new collection during a eral counsel and corporate Linda Forte and Tyrone Davenport, executives with Comeri- noon, according to Scott issue of InformationWeek’s fashion show May 11 at the secretary, Champion Enter- ca and the Charles H. Wright Museum of African American Lorenz, president of West- monthly magazine Optimize. FD Lofts, 3434 Russell St. in prises Inc., Auburn Hills. History, respectively. wind Communications, which It’s available at Detroit. Reed Kroloff to director, Funding also comes from National City and Fifth Third represents barcardz.com. www.bus.msu.edu/ The show will feature sev- banks, Detroit’s General Retirement and Police and Fire alumni/publications/ Cranbrook Academy of Art and eral other designers, includ- Art Museum, Bloomfield Pension Funds, and the Detroit Renaissance Inc.-backed De- magazine/BroadBusiness_ Study: IT chiefs need ing Michel Delon, and an ap- Hills, from dean, Tulane Uni- troit Investment Fund. 2007.pdf. pearance by Detroit artist versity School of Architecture, The architect is Kraemer Design Group and construc- more than tech skills and designer Camilo Pardo. New Orleans. He replaces tion manager is L.S. Brinker Co. Today’s chief informa- Farrell’s Flint film a fond General admission is $25 the retiring Gerhardt Knodel. tion officers should bone up prior to the event and $35 at Jonathan Wolman to edi- request for proposals for a its operations from Con- on their communication find for Ardesta co-founder the door. Visit www.theloft tor and publisher, The De- mixed-use redevelopment sumers Energy Co. The trans- and strategic planning News that Will Farrell was warehouse.com/launch for troit News, from editorial of the old Cass Technical mission company was pur- skills if they want to fit the in Flint last week, filming a more information. page editor, The Denver Post, High School. For more infor- chased by Novi-based ITC effective mid-June. He re- mation, call (313) 577-7601. Holdings Corp. in October. places David Butler, who will CMS Energy Corp. on An affiliate of The become vice president for Tuesday announced comple- Blackstone Group has closed MediaNews Group news for tion of the sale of its majori- on its acquisition of a con- Inc., parent of both papers. Need more information on law firms? ty stake in a Venezuelan trolling interest in RGIS electric utility, a $105.5 mil- Holdings L.L.C., Auburn Today marks the debut of our fourth constructionlist) and the largest BRIEFLY lion deal that includes the Hills. RGIS’ previous own- interactive list, largest law firms Automotive dealers sale of related assets to ership has retained a signif- (www.crainsdetroit.com/lawfirms). (wwww.crainsdetroit.com/ A Dutch court blocked Petroleos de Venezuela S.A., an the sale of Chicago-based icant stake in the company. There you’ll find more on the top 20 autodealers). You’ll be treated to oil and gas company owned photos, links and content that does LaSalle Bank Corp., includ- The company reported $560 law firms in the region, links to their by the Venezuelan govern- Web sites and a host of other not appear with the list in the print ing its Troy-based Michi- million in revenue in 2005. ment. The sale includes information that you might not find version of Crain’s Detroit Business. gan subsidiary, to Bank of CMS’ 88 percent stake in pri- on the print version of our list. So, if you haven’t taken the America Corp. Thursday, re- vate utility Sistema Electrico OBITUARIES The largest law firms list follows our opportunity to read more than just sponding to dissident de Nueva Esparta C.A., as well other interactive lists, which include the numbers, I’d encourage you to shareholders of ABN Amro Mary Koch, former pres- 2006’s largest verdicts and visit each of our interactive lists. And Holding N.V., who argued as associated generating ident of the Brightmoor Com- settlements (crainsdetroit.com/ WEB WORLD if you’re looking for even more that the sale was illegal. equipment and other assets. munity Center in Detroit and verdicts), Metro Detroit’s largest Daniel Eizans expanded data, remember that you Cass Tech Development Also, Michigan Electric a longtime civic activist, construction projects can buy Excel versions of our lists and Preservation Society and Transmission Co. L.L.C. has died of complications from (crainsdetroit.com/ online (crainsdetroit.com/datacenter). Detroit Public Schools has a completed the separation of cancer April 25. She was 72. DBpageAD.qxd 4/16/2007 2:33 PM Page 1

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