Detroit, State Leaders to Rub Elbows at Inauguration

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www.crainsdetroit.com Vol. 25, No. 2 JANUARY 12 – 18, 2009 $2 a copy; $59 a year

Inside Expect changes in labor law, Page 3 Transplant limits face review Nonprofits unite as Detroit 3 State may study letting more hospitals do some operations funds dry up, BY JAY GREENE the total number of hospitals, but System in Detroit, the University of reduce volume Page 6 CRAIN’S DETROIT BUSINESS hospitals must perform a mini- Michigan Health System in Ann Ar- at these centers, mum number of the procedures bor and Barbara Ann Karmanos Can- resulting in Policy Quarterly The Michigan Certificate of Need each year to maintain their certifi- cer Institute in Detroit, want the higher cost per Commission will decide Feb. 5 cates. rules unchanged. transplant and whether to appoint a work group Royal Oak-based William Beau- The University of Michigan’s therefore im- to study changing 23-year-old state mont Hospitals and St. John Health in C.S. Mott Children’s Hospital and Uni- pacting changes regulations governing the number Warren have asked the state to re- versity Hospital and Henry Ford also to employers of hospitals allowed to offer cer- vise organ transplant regulations. hold CONs to perform heart-lung and patient out- tain organ transplant services. They want the state to open up the and liver transplants. of-pocket ex- Under current regulations, just CON process to allow other hospi- In a statement to Crain’s Detroit Riney penses,” Riney three hospitals in the state are per- tals to apply based on institution- Business, Robert Riney, Henry said. mitted to perform bone marrow specific criteria or other reasons, Ford’s COO, said the three ap- “There are even fewer solid or- Corrections budget transplants, and just three are al- including relaxed minimum vol- proved transplant centers are gan transplants (heart-lung and lowed to conduct heart-lung and ume restrictions. enough to handle the number of liver) performed compared to bone handcuffs state. Business liver transplants. On the other hand, the three patients seeking bone marrow and marrow transplants,” he said. Regulations for pancreas and hospitals allowed to do bone mar- heart-lung and liver transplants. fights back, Page 11 kidney transplants do not restrict row transplants, Henry Ford Health “Adding another center would See Transplants, Page 17 Small business In print: ■ Small Business Barometer Detroit, state leaders to rub says ‘gloomy.’ Page 3 ■ Economic bust a boom to elbows at inauguration pawnbrokers. Page 10 State-specific events scheduled WHO’S GOING?

At crainsdetroit.com: BY NANCY KAFFER chair of the General Motors Foun- ■ Bloggers tell how to get CRAIN’S DETROIT BUSINESS dation, Inc., executive director, public affairs and community re- through the recession. Hotels are packed, buses relations for General Motors Corp; served and tickets to the most ex- Nancy Schlichting, Henry Ford clusive events are expensive or un- Health System president and CEO; This Just In available. and Michigan Health and Hospital Detroit’s business and civic Association President Spencer Cockrel Earley DHL cuts 736 Michigan jobs leaders will be out in force at the Johnson. inauguration of President-elect Dingell said she expects at Bonn, Germany-based Barack Obama. least 3,000 people to attend. The Deutsche Post AG will cut 736 Just 240,000 tickets are available event has more than 20 years of Michigan jobs as part of its for the Jan. 20 swearing-in ceremo- history, but this year’s economic plan announced in Novem- ny, but national reports estimate 2 uncertainty threatened to end ber to close all of its DHL Ex- million to 4 million visitors will the tradition. press service centers. flock to the nation’s capital for the “This year had raised the ques- The facilities affected are festivities, which begin this week- tion if we would be able to afford Flack Schlichting in Detroit (200 jobs), South- end and coincide with Martin to do it,” she said. “The automak- field (100), Troy (100) and Luther King, Jr. Day, which will ers have been significant sup- Among the local leaders who be celebrated Monday. have tickets are: Niles (336), according to a reporters, and this year they said NAIAS Attendees at the $200-a-ticket port from the Michigan De- they couldn’t do it. Unfortunately Ⅲ Ken Cockrel Jr., Detroit mayor Denso International sets up at black tie-optional Michigan Inau- partment of Labor and Econom- I had to increase ticket prices, Ⅲ Tony Earley, DTE Energy CEO Cobo Center for the North American gural Dinner Dance, to be held the ic Growth. and we had some other sponsors Ⅲ John Flack, WSU chair of International Auto Show. night of the inauguration at the Na- The company also will step up to the plate.” internal medicine tional Museum of American History’s eliminate U.S.-only domestic Dingell declined to discuss the Ⅲ Nancy Schlichting, president ALL ABOUT THE SHOW Kenneth E. Behring Center, can ex- shipping by land and air in cost of the event, saying the final and CEO of Henry Ford Health pect to rub elbows with Democrat- Ⅲ Auto suppliers: They are out in its effort to stem losses. tally would depend on the num- System ic and Republican members of force despite the economy. The company is trimming ber of attendees. She’s cut some For a more complete list, see Michigan’s congressional delega- Page 18 9,500 jobs nationally. costs. Instead of china, guests Page 20. — Bill Shea tion and the likes of Gov. Jennifer Ⅲ The facts: Find out what’s will dine on environmentally Granholm; Detroit Mayor Ken happening when. Page 19 friendly disposable dishes. There event, said Chris DeWitt, See This Just In, Page 2 Cockrel Jr.; Debbie Dingell, vice Ⅲ Event bookings: Party planners won’t be as many flowers, and spokesperson for Granholm and happy to get a late rush. there won’t be as many serving Cherry’s political activities. Page 19 stations. He said invitees include Michi- That’s not the only Michigan- gan people attending the inaugu- N THE BLOG BEAT centric event scheduled for the ration; Democratic supporters; O inauguration. Granholm and Lt. labor, business and education Ⅲ Crain’s reporters Bill Shea and Gov. John Cherry will host a Jan. representatives; and Michigan’s Ryan Beene will offer commentary, 19 reception at the Old Ebbitt Grill congressional delegation. musings and observations all week in Washington, D.C. DeWitt said the reception’s ap- at the show. Go to www.crains proximate $30,000 tab will be paid detroit.com.

NEWSPAPER At least 1,400 people have been invited to the invitation-only See Inauguration, Page 20 20090112-NEWS--0002-NAT-CCI-CD_-- 1/9/2009 6:09 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 12, 2009

workers and shut down a plant in Stock offerings by VC-backed Kin Properties Inc. is the landlord. restore the Great Lakes is sched- THIS JUST IN Plymouth this spring. The Southfield office of CB Richard uled to be unveiled Tuesday by Production at the exterior door companies tumble in 2008 Ellis represented the landlord and Lt. Gov. John Cherry. ■ From Page 1 handles plant in Plymouth will Last year was the worst in Principal Associates L.L.C. of South- The plan, spearheaded stop on Feb. 20, and the majority of more than three decades for the field represented the tenant. through the Michigan Office of the Foundation will fund projects on the plant’s 137 workers will be cut, number of initial public offerings — Daniel Duggan Great Lakes, will include recom- according to Kevin Koshowski, com- nationwide of companies funded mendations and strategies that health care for the uninsured underscore a commitment to the pany director of human resources. by venture capital, according to Copper theft bills become law Blue Cross Blue Shield Michigan A small number of remaining Thomson Reuters. There were six lakes. Foundation is offering up to $1 mil- workers will be phased out pro- IPOs, which matched the tally in A bipartisan package of bills de- Areas include protecting hu- lion in matching funds for progressively in March and April as 1977. None was in Michigan. signed to deter and reduce thefts of man health, restoring beaches, jects that improve health care ac- they wind down the plant. The total value of IPOs was copper have been signed into law. combating invasive species, process to the poor and uninsured. Key Plastics filed for Chapter 11 $470.2 million, the lowest since Public Acts 428-432 of 2008 in- tecting fish and wildlife, land use Most experts predict the num- bankruptcy reorganization on $339.7 million in 1979. clude provisions that would planning and increasing tourism ber of uninsured in Michigan will Dec. 15. There were 260 acquisitions of make anyone who knowingly and recreational opportunities. rise as workers continue to lose The Plymouth plant is the third VC-backed companies on the buys or sells stolen scrap metal Presentation of the plan is jobs in a worsening economy. As plant to be shut down in a series of year, the worst showing this subject to felony penalties, in- scheduled Tuesday at the offices of last month, 11 percent of Michi- capacity reductions. The reorga- decade. Just 37 of those took place cluding up to five years in prison of Miller, Canfield, Paddock and gan residents are uninsured, ac- nization plan, approved by 90 per- in the fourth quarter. Five VC- and/or a fine of up to $5,000. Stone P.L.C. in Detroit. cording to a December report by cent of the company’s bond hold- funded Michigan companies Scrap metal dealers will have — Amy Lane America’s Health Rankings. ers, will convert $115 million of were sold in 2008. to maintain records of purchases, Blue Cross’ Community Health senior secured notes into compa- The total value last year of as well as tag and hold most pur- Detroit Fish Market opens Matching Program is intended to ny common stock, flipping debt M&A activity involving VC- chased nonferrous metal for sev- encourage community-based into equity. backed companies was $13.9 bil- en days. Sellers of scrap must pre- Frank Taylor opened the De- nonprofit health care organiza- Wayzata Investment Partners lion, down from $28.4 billion in sent identification and follow troit Fish Market seafood restau- tions to participate in developing L.L.C., a Minnesota-based invest- 2007 and the lowest total since other security provisions rant in Detroit’s Paradise Valley and testing new approaches to in- ment bank, owns the majority of 2003. The value of Michigan deals — Amy Lane on Thursday. crease access to care. the company’s bonds, and will be was not available, though the The 7,200-square-foot restau- Over the past 25 years, the the controlling shareholder after largest is believed to have been Great Lakes plan to be unveiled rant creates nearly 80 jobs and Blues’ foundation has con- the bonds are converted to com- the purchase in October of Ann seats up to 170 guests. tributed about $20 million in mon stock. Arbor-based HealthMedia Inc. by A Michigan plan to protect and — Nathan Skid grants for research and $5 million Wayzata will provide $20 mil- Johnson & Johnson. for community health programs. lion in financing to bankroll the —Tom Henderson See www.BCBSM.com/founda- company’s operations while un- CORRECTIONS tion for more details. der court protection, and an addi- NYX leases space in Livonia Ⅲ A story on Page 6 of the Jan. 5 issue incorrectly listed Debbie Dingell’s — Jay Greene tional $20 million for the company title as vice president at General Motors Corp. Dingell is vice chair of the after the plan is approved by the Livonia-based NYX Inc., an auto- General Motors Foundation, Inc. and executive director, public affairs and Key Plastics to shut area plant court. The company expects the motive supplier, has leased 252,000 community relations for General Motors Corp. company to emerge from Chapter square feet of industrial space in Ⅲ A Jan. 5 This Just In item incorrectly described the services of a Sunrise Northville-based auto supplier 11 protection Jan. 29. Livonia at 36667 Schoolcraft Road Senior Living center opening in Bloomfield Township on Jan. 29. The center Key Plastics L.L.C. plans to cut 137 — Ryan Beene for its manufacturing operation. will treat people with early memory loss and Alzheimer’s disease. A special unit, called the Terrace Club, will care for people with early memory loss. UP

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January 12, 2009 CRAIN’S DETROIT BUSINESS Page 3 Labor law changes look likely Inside First up in Congress may be Employee Free Choice Act Two make a difference in BY CHAD HALCOM buster in the U.S. Senate. The law Act and changes enacted to the cal level. CRAIN’S DETROIT BUSINESS would make it possible to unionize Family Medical Leave Act that Attorneys said most of the new revitalizing the Rust Belt, without an employee election. take effect Friday. legislation, such as the free choice A new presidential administra- President-elect Barack Obama Several business lobbyists and act, seeks to shore up middle class Page 5. tion and a possibly filibuster-proof has pledged to sign the law if it media campaigns oppose the free wealth and benefits and reinvigo- Senate could have local law firms reaches his desk, and the Republi- choice act. The U.S. Chamber of rate unions, which have seen tackling significant management- can minority would be unable to Commerce has pledged to raise and falling membership for decades. A different way to make a labor law reforms for their em- filibuster it unless Sen. Norm Cole- spend $10 million on a campaign to “The decline is the result of a ployer clients. man is successful in a legal chal- defeat the legislation and has number of factors,” said John Run- hospital profitable, Attorneys in employment litiga- lenge to Democrat Al Franken’s joined the Coalition for a Democratic yan, managing director of Detroit- Page 16. tion and labor law said the largest status as the winner in a vote re- Workplace, a group of 500 business based Sachs Waldman P.C., which spot on their radar this month is count in Minnesota. Local firms groups. The Detroit Regional Cham- represents unions in labor rela- the Employee Free Choice Act, have been briefing clients on the ber is a part of the coalition as well tions matters. “But the changes in Company index which passed the House in Wash- free choice act, along with the Pa- but plans an awareness-building ington in 2007 but was idled by fili- triot Employer Act, the Respect campaign, not fundraising, on a lo- See Labor, Page 20 These organizations appear in this week’s Crain’s Detroit Business: American Jewelry and Loan ...... 10 Arotech ...... 6 Baseball Heroes of Oakland County ...... 21 Blue Cross Blue Shield ...... 17 Blumz by JRDesigns ...... 19 Bodman ...... 20 Small Business Cambridge Employee Benefits ...... 21 Carter Organization ...... 3 Pride more Charles H. Wright Museum ...... 6 Citizens Research Council of Mich...... 11 College for Creative Studies ...... 18 Barometer finds Cultural Alliance of SE Mich...... 6 Denso International ...... 18 Detroit Hope Hospital ...... 16 Detroit Demolition ...... 21 than profits Detroit Diesels ...... 21 dismal outlook Detroit Ignition ...... 21 Detroit Panthers ...... 3 Low costs, deep-pocket BY NANCY KAFFER Detroit Regional Chamber ...... 11 CRAIN’S DETROIT BUSINESS Detroit Wayne County Health Authority ...... 16 Economic Alliance of Mich...... 17 Sales are down. Profits have dropped. Access EEI Global ...... 18 owners help minor league to credit has tightened. Forte Belanger ...... 19 Businesses that participated in the Small Busi- Freitag Event Design ...... 19 ness Association of Michigan’s 58th Small Business Great Lakes Urban Exchange ...... 5 Harper Univ. Hospital ...... 17 sports in tough economy Barometer didn’t have much good news to re- H.B Stubbs ...... 18 port. BY BILL SHEA Henry Ford Health System ...... 1, 16 Just 16 percent of business owners surveyed Honigman Miller Schwartz and Cohn ...... 13 CRAIN’S DETROIT BUSINESS for the biannual report said sales had increased IAC Group ...... 19 When the Detroit Panthers narrowly beat in the last quar- Johnson Controls ...... 18 the Mid-Michigan Destroyers on Jan. 3 at ter, while 48 per- Karmanos Cancer Institute ...... 1 Kitch Drutchas Wagner ...... 20 Groves High School in Beverly Hills to open cent reported Klimist McKnight Sale ...... 20 its inaugural Premier Basketball League sea- falling sales — a 16 percent record low for Lew Silver Diamond ...... 10 son, it became the latest entry in the region’s of SBAM members Mich. Assn. of Realtors ...... 14 the barometer, diverse galaxy of minor league sports teams. surveyed said sales Michigan Bucks ...... 21 In a local and national economy that’s lim- noted Michael increased in the last Mich. Certificate of Need Comm...... 1 ited fans’ discretionary spending and forced Rogers, SBAM’s quarter. Mich. Chamber of Commerce ...... 14 even major league teams and leagues into vice president Mich. Dept. of Corrections ...... 11 layoffs, steep discounted for communica- Mich. Manufacturers Assn...... 14 ticket deals and truncated tions. 48 percent Miller Canfield ...... 20 Nemeth Burwell ...... 20 or suspended seasons, the Forty-three reported falling sales, a record low. Norman’s Jewelry and Loan ...... 10 minors continue to chug percent of re- spondents expect North American Int’l Auto Show ...... 18 along and even expand — Oakwood Healthcare ...... 17 sales to increase fueled by local business- 43 percent Plymouth Whalers ...... 21 men with dreams and in the next year, Sachs Waldman ...... 3 expect sales to increase money to burn. compared to a Saga Communications ...... 4 historical aver- this year, compared to SBAM ...... 3 The Panthers are owned COURTESY OF DETROIT PANTHERS historical average of 60 The Panthers bring in spectators with inexpensive age of 60 percent, Special D Events ...... 19 by Kevin Carter, whose percent. Birmingham-based finan- prices and special treatment for fans. according to the Sphinx Organization ...... 6 Carter report. Sports Management Network ...... 3 cial services and real es- their opener, Carter said, and the appeal is in Declines in St. John Health ...... 1 tate firm The Carter Organization is his main cheap ticket prices — a family of four can get Townsend Hotel ...... 19 profitability out- 20 percent source of revenue. tickets, hot dogs and drinks all for under $70 plan to hire staff this year. Univ. of Mich. Health System ...... 1 stripped drop- “We want to be what’s called a develop- — and allowing touches fans can’t find at Na- Wee Discover Child Daycare ...... 3 ping sales, with mental team where we bring guys in and de- tional Basketball Association games such as be- William Beaumont Hospitals ...... 1 54 percent of re- velop their skills. We attempt to get them ing able to pose for pictures with players on ZF Group ...... 18 spondents reporting decreased profitability in jobs overseas,” he said. the court after games. the last quarter. Fourteen percent of those sur- The league limits teams to a $120,000 salary Still, minor-league sports is a precarious veyed said profitability increased. Department index cap for their entire 12-man rosters, and with investment at best, area sports insiders say. “We’re in the child care and preschool busi- the team playing at a 2,500-seat high school “I think it’s very risky right now in light of BANKRUPTCIES ...... 4 ness,” said Jerry Grubb, co-owner with wife gym, the Panthers and their 20-game season the economy. Even at the very top level of Rhonda of Wee Discover Child Daycare & Learning BUSINESS DIARY ...... 15 aren’t a huge drain on Carter’s finances. sports, there’s a constriction of spending,” Center in Waterford. CALENDAR ...... 15 “It doesn’t cost a great deal. Basketball is said John Caponigro, president of Bloomfield “Because people don’t have jobs, they don’t CAPITOL BRIEFINGS...... 7 inexpensive,” he said. Hills-based Sports Management Network Inc. The Panthers drew about 1,000 fans to CLASSIFIED ADS ...... 15 See Sports, Page 21 See Barometer, Page 21 KEITH CRAIN...... 8 LETTERS...... 8 Cobo video tour Publc policy roundtable Small Talk OTHER VOICES ...... 9 THIS WEEK @ The auto show starts What will revive the Small-business bloggers OPINION ...... 8 this week. See what’s state’s economy? tell how to get through RUMBLINGS ...... 22 WWW.CRAINSDETROIT.COM different. Download a podcast. the recession. WEEK IN REVIEW...... 22 20090112-NEWS--0004-NAT-CCI-CD_-- 1/9/2009 5:25 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 12, 2009 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Saga ponders reverse stock split to keep its NYSE listing

BY BILL SHEA The exchange requires a compa- ure to meet the Alternext or Nas- CRAIN’S DETROIT BUSINESS ny’s market capitalization to be at daq listing requirements would least $25 million over 30 days, and mean Saga would be traded on the Grosse Pointe Farms-based ra- if Saga’s shares fall below $1.50 for less desirable Pink Sheets or over- dio station owner Saga Communica- that long, it could be delisted, said the-counter. tions Inc. is mulling a reverse stock Sam Bush, Saga’s senior vice pres- “We’re just looking to preserve split to forestall potential delisting ident and CFO. our options in the future if we ever by the New York Stock Exchange. In its SEC filing, Saga said its get de-listed,” Bush said. “We don’t The broadcaster, which doesn’t own any stations in Detroit, in- market cap had been averaging $46 want to be on the Pink Sheets.” formed the Securities and Exchange million by the date of the commis- In its more recent filings, Saga Commission and shareholders at sion’s letter. reported net income of $3 million the end of last year of the potential Ed Christian, or 16 cents a share on revenue of split, and also filed an application Saga’s presi- $36.1 million during the third for listing on the Alternext ex- dent, CEO and quarter ending Sept. 30, compared change, the NYSE-owned market board chair- with net income of $3.3 million or aimed at smaller and midsize com- man, owns near- 17 cents per share during the same panies. ly 63 percent of quarter the year prior. “The board of directors of the the company’s For the first nine months of 2008, company has authorized a reverse 2.4 million Class Saga reported net income of $7.4 stock split of its Class A and Class B shares. million or 38 cents per share on B common stock, at a ratio to be Christian Both those revenue of $105 million, compared determined by our board of direc- shares and the 14.4 million Class A with net income of $7.9 million or tors of not more than one-for-four, shares would be part of any split, 39 cents per share on revenue of for the purpose of providing the the company said. $107 million during the same peri- company with flexibility with re- A 1-for-4 reverse split would od last year. spect to possible listing and trad- mean that every four shares Radio nationally will see a 13 ing liquidity opportunities,” the owned by an investor would be percent revenue decline this year, company said in a press release combined into a single share. For with Saga among the least affected Dec. 29. example, four $1.50 shares would (with single-digit declines) be- No date has been set for a deci- become a single $6 share. cause of its small-market focus, sion. Saga said it believes the split predicted Marci Ryvicker, who Saga’s shares have slowly de- will make its stock more attractive monitors Saga as a broadcast in- clined from a 52-week high of $6.68 to investors, but also warned the dustry analyst for New York City- on Aug. 25 to $1.10 on Dec. 17. The company blames the loss of value shares could dwindle to pre-split based Wachovia Capital Markets on the industrywide decline in ad- levels and leave the company with L.L.C., in a recent report. vertising revenue. less liquidity because of having Saga, which owns 61 FM and 30 The exchange warned Saga fewer outstanding shares. AM stations throughout the coun- (NYSE: SGA) in a Dec. 19 letter that The company also filed paper- try, reported 2007 full-year rev- delisting was possible because the work for possible listing on Al- enue of $144 million. It’s 2008 re- broadcaster’s shares are nearing ternext. port is expected at the end of the $1 listing threshold, and the Saga also is considering listing February, Bush said. company’s market capitalization on the Nasdaq Capital Market. Bill Shea: (313) 446-1626, also is nearing the listing cutoff. Delisting on the NYSE, or fail- [email protected]

STREET TALK BANKRUPTCIES THIS WEEK’S STOCK TOTALS: 37 GAINERS, 28 LOSERS, 7 UNCHANGED 01/09 01/02 PERCENT The following businesses filed CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE for Chapter 7 or 11 protection in 1. Domino's Pizza Inc 6.13 5.02 22.112 U.S. Bankruptcy Court in Detroit Jan. 2. Detrex Corp 3.8 3.2 18.75 2-8. Under Chapter 11, a company 3. Amerigon Inc 3.79 3.22 17.702 files for reorganization. Chapter 7 4. involves total liquidation. Credit Acceptance Corp 17.03 14.48 17.611 Acropolis Development, 4403 Reil- 5. Perceptron Inc 3.83 3.44 11.337 ly Dr., Troy, voluntary Chapter 11. 6. Rockwell Medical Technologies Inc 4.55 4.12 10.459 Assets and liabilities not avail- 7. General Motors Corp 4.03 3.65 10.411 able. 8. Eagle Capital Growth Fund Inc 5.7 5.2 9.615 Brothers Distributors Inc., 14410 9. TechTeam Global Inc 5.91 5.48 7.847 Meyers Road, Detroit, voluntary 10. Ramco-Gershenson Properties Trust 6.92 6.45 7.287 Chapter 7. Assets: $752,688; liabili- CDB’S LOW PERFORMERS 01/09 01/02 PERCENT ties: $1,285,775. CLOSE CLOSE CHANGE McKenzie Lawnscape Inc., 6926 1. Agree Realty Corp 15.14 17.38 -12.888 Inkster Road, West Bloomfield, 2. Kaydon Corp 31.1 35.7 -12.885 voluntary Chapter 7. Assets: 3. Somanetics Corp 14.75 16.8 -12.202 $129,099; liabilities: $258,741. 4. Rofin-Sinar Technologies Inc 19.02 21.55 -11.74 Riverside Commons L.P., 33503 23 5. Asset Acceptance Capital Corp 4.97 5.49 -9.472 Mile Road, New Baltimore, volun- 6. FNBH Bancorp Inc 4 4.4 -9.091 tary Chapter 11. Assets and liabili- 7. Federal Mogul Corp 4.82 5.27 -8.539 ties not available. 8. Taubman Centers Inc 23.03 24.45 -5.808 Thomson Enterprises Inc., 42563 9. Kelly Services Inc 12.86 13.51 -4.811 Lilley Pointe Boulevard, Canton 10. Tecumseh Products Co 9.62 10.07 -4.469 Township, voluntary Chapter 7. Source: Bloomberg News. From a list of publicly owned companies with headquarters Assets: $9,635; liabilities: $239,638. in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. — Compiled By Julie Dawso 20090112-NEWS--0005-NAT-CCI-CD_-- 1/9/2009 5:10 PM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 5 GLUE founders stay put to help Rust Belt renaissance

BY AVA TABB director. This year, Szurpicki says GLUE SPECIAL TO CRAIN’S DETROIT BUSINESS In GLUE’s network, there are will attempt to diversity its in- community organizers, urban plan- come by approaching individual While the typical 20-something ners, environmentalists, artists, en- donors and holding fundraisers. often flees the industrial city for trepreneurs and students. Szurpicki is a 2003 graduate of the sparkling metropolis, Sarah Typically they range in age Harvard University, where she earned Szurpicki, 27, and Abby Wilson, 29, from 18 to 40 and live in places like a bachelor’s degree in environmen- have sunk their heels into the grit Detroit, Lansing, Pittsburgh, Cleve- tal sciences and public policy. Wil- of the Rust Belt to plan a renais- land, Buffalo or Milwaukee. son is a first-year law student at the sance. Gluespace.org is a platform for University of Pittsburgh and a 2002 Just over a year ago, the best discussions, news and photo gal- graduate of Columbia University, friends founded the Great Lakes Ur- leries. Blogging where she received a bachelor’s de- ban Exchange, or GLUE, a network is encouraged for gree in cultural anthropology. of people dedicated to revitalizing controversial Szurpicki has been working full the Great Lakes region. topics and civic time on GLUE since returning The group’s Web site, glue- opportunities. home to metro Detroit in 2007. space.org, connects Registered users Wilson, who lives in Pittsburgh, 1,500 members across This only spends about 10 hours a week story stay connected the country. The through monthly e- on the project. originally appeared on Abby Wilson and Sarah Szurpicki founded the Great Lakes Urban Exchange to group has about 100 mail GLUEsletters. To generate buzz, GLUE will members in Detroit. Detroit Make it Here connect people dedicated to revitalizing the Great Lakes region. hold a three-day conference in Mil- (www.detroitmakeithere “It’s about creating a GLUE is linked by space where people waukee in March. “We want to set .com), a Web site for the executive director of the New ronmental Council, Detroit Renais- a regional agenda for young people industrial cities from Buffalo and De- area creatives powered Economy Initiative, met with sance Inc., Cleveland Executive Fel- and talk about pertinent policy is- plagued with popula- troit can connect and by Crain’s and Szurpicki and Wilson to discuss lowship and Local Initiatives Support sues at local, state and federal lev- tion decline and the compare notes,” sponsored by Detroit the group’s mission. Corp. for operational recommenda- els, to advance the interest of the subsequent loss of Szurpicki said. “We Renaissance Inc. If you Since GLUE’s concept supported tions, updates on pertinent region- region as a whole,” Wilson said. tax base, racial segre- have faith in the people seek creative talent or the institute’s Great Lakes mission, al issues and bloggers. They’re hoping to capitalize on gation, inadequate who are working hard public transporta- services, you can find Brookings donated $15,000. In the “I’ve been eager to help this ef- the civic energy from the presiden- more than 1,000 for their cities that last year, Brookings helped the fort continue on and to incorpo- tial election to rally a motivated tion and under-per- they will be able to fig- forming schools. people and 2,000 group to secure $150,000 to $200,000 rate itself and be its own self- troop of change agents. companies on the site. ure out what they can by introducing Szurpicki and Wil- standing work,” Austin said. “If we are better at embracing our “Fortunately, our learn and from whom.” cities also have com- son, GLUE’s associate director, to GLUE’s first-year operating shared destiny and cooperating Talk of launching Charles Stewart Mott munities of people who see the pos- leaders at the budget was about $120,000. (within metropolitan regions and GLUE started in the summer of Foundation The John R. Oishei sibility of a Rust Belt renaissance in Flint, In September, it became a pro- states), we have an incredible op- 2007. The group took flight that No- Foundation The Joyce Foun- Tides Center portunity to regain our status as an and who are working incredibly in Buffalo, ject of the , a San Fran- vember. dation Surdna Foundation economic and political powerhouse, hard in a variety of ways to make in Chicago, cisco-based nonprofit that spon- John Austin, then director of on a global scale,” Szurpicki says. these places better,” said Royal in New York City and others. sors social innovation. It manages The Brookings Institution’s Great “I see our cities as the vibrant Oak resident Szurpicki, GLUE’s Austin hooked Szurpicki and all of GLUE’s funds and provides Lakes Economic Initiative and now Wilson up with the Michigan Envi- back-office support services. loci of that renaissance.”

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Page 6 CRAIN’S DETROIT BUSINESS January 12, 2009 As Detroit 3 funding falls, nonprofits to collaborate

BY SHERRI BEGIN WELCH corporate grants,” she said. Moore said. CRAIN’S DETROIT BUSINESS Arts organizations are actively The museum plans to extend the In our region, nonprofits have seeking to diversify by going to in- exhibit “Tutankhamun: Wonder- The Cultural Alliance of Southeast- “ dividuals, foundations, and out-of- ful Things from The Pharaoh’s ern Michigan is planning to help its historically depended on area donors. Tomb,” by a month. It will contin- members collaborate on account- Earned revenue for the Cultural ue through February, which is ing and marketing services this corporate funding by about Alliance’s membership is about 48 Black History Month. year to help offset declines in fund- percent of collective revenue, “That’s a big month for us. ing from a number of sources, in- four times the national Lyon said. But individuals will Hopefully, that will help,” Moore cluding the foundations of local need to step up even more by buy- said. automakers. average. ing tickets and attending cultural While the Detroit Zoo last fall was The moves are aimed at reduc- ” events in support of the arts to successful in gaining voter ap- ing costs and boosting ticket sales Maud Lyon, executive director, help sustain them, Lyon said. proval for a millage to support its for local arts and cultural events. Cultural Alliance Funders like the Kresge Founda- operations, a broader arts and cul- They are a necessity, arts orga- tion already are stepping up, she tural tax failed twice in 2000 and nizations say, in the wake of de- infusions from the company ... pect to launch two or three of them said. In 2007, the Troy-based foun- 2002, following deep cuts in state clines in funding from at least two (and) stretch those out for 2009 and this year, Lyon said. dation announced a new funding funding, and wouldn’t likely gain of the three Detroit 3 automaker into 2010, obviously … on a much “What we’re talking about is program to provide operating sup- traction today, Lyon said. foundations and other supporters. more reduced basis,” he said. how arts organizations can work port for arts and cultural organiza- “Now is not the time politically General Motors Corp. did not The Chrysler Foundation, which together to cross-market so that tions, she said. or economically … You’re not go- make any contributions to its phil- saw its corporate contributions audiences that go to one (perfor- In addition to cost-cutting ing to get voters to vote for a mill- anthropic arm, the General Motors drop by $2 million in 2007 to $18 mance or exhibit) would be en- moves like reducing museum age for 16 organizations or 30,” she Foundation, in 2007 or 2006, the million, didn’t yet have a budget couraged to go to another.” hours, not filling open positions said. foundation told Crain’s in late No- for this year as of last Friday, said Last year, the Cultural Alliance, and, as a last resort, employee lay- Music Hall President and Artistic vember. Jodi Tinson, manager of communi- Library of Michigan Foundation and offs, the Charles H. Wright Museum of Director Vincent Paul disagrees. Last week, the foundation said it ty affairs communications for Macy’s piloted a cross-promotional African American History is looking “In Michigan we have a relation- informed local arts and cultural Chrysler L.L.C. program with the Macy’s Museum for ways to increase earned rev- ship with the performing arts that organizations and other nonprof- The idea behind the Cultural Al- Adventure Pass. It was a free sev- enue from admissions, its store is more complex and profound its that they should not count on liance’s accounting and marketing en-day pass to cultural attractions and facility rentals, said President than in other states. … Kids are in funding this year, given the au- collaboration is to look at how its available for pickup at public li- and CEO Juanita Moore. ballet … play a musical instru- tomaker’s hardships. members “can reduce their opera- braries in Macomb, Oakland, Liv- About 30 percent of the muse- ment or are involved in thespian The Ford Fund is also looking at a tional costs by being more effec- ingston, St. Clair, Washtenaw and um’s $6 million in revenue last classes. That’s something you can reduced ability to make grants, tive and combining resources,” Wayne counties. year was earned rather than do- hang your hat on.” President Jim Vella told Crain’s in said Executive Director Maud “In our region, nonprofits have nated by individuals, corporations Of the two failed arts millages, November. Lyon. historically depended on corpo- or foundations, she said. he said: “That was then. This is “Our plan is to take the money The alliance and its members rate funding by about four times This year, the museum hopes to now. Three’s a charm.” we have in the fund that’s unre- also are exploring more than 10 the national average,” Lyon said. increase earned revenue to 33.5 Sherri Begin Welch: (313) 446- stricted and add any possible cash joint marketing programs and ex- “This isn’t just a matter of a few percent of its $6 million budget, 1694, [email protected] Arotech stock climbs with Gaza strife Dworkin’s new quest: Make

BY CHAD HALCOM than expected in 2009. But he added that the CRAIN’S DETROIT BUSINESS Israel-Gaza conflict was only “a minor factor” in his evaluation. leaders available to youths Hostilities between Israel and the Von Rumohr recently upgraded his eval- Hamas government in the Gaza Strip may uation for Los Angeles-based Northrop Grum- BY SHERRI BEGIN WELCH the series and to help with fundraising, be fueling modest investor speculation in man Corp. from neutral to “outperform,” but CRAIN’S DETROIT BUSINESS which hasn’t yet begun in earnest, he said. Ann Arbor-based Arotech Corp., which sup- left most other recommendations in defense Among the board members are: Grady Sphinx Organization President and CEO plies an armored vehicle for the Israeli unchanged. Burnett, director of online sales and opera- Aaron Dworkin wants to make local, estab- military. “The group (defense stocks) got killed tions and Chris Genteel, manager of the on- lished leaders more accessible to youth. But the company has yet to receive a fol- through mid-to-late December, but there line advertising platform at Google’s Ann He’s dedicated the third year of his five- low-up manufacturing order for the David, was a bit of an oversell,” he said. “It was Arbor office; Marta Manildi, a principal of year, $500,000 “genius an ultralight armored personnel carrier it unclear what (President-elect) Obama Miller, Canfield, Paddock and Stone P.L.C. in grant” from the John D. produces for the Israel Defense Forces, and might do when he takes office, but the Ann Arbor; and Karen Dumas, a freelance and Catherine T. MacArthur would not comment on whether another threat scenario remains serious and the columnist for The Michigan Chronicle and Foundation — about production order is forthcoming. new administration has a focus on build- Michigan Front Page, host of the television $60,000 after taxes — and Shares of Arotech climbed from 47 cents ing U.S. jobs. Defense products are built in show, “Next Detroit,” host of a number of a $500 grant from the Pow- last week from a previous monthly low of 40 the country.” radio shows on WRCJ -FM 90.9 and presi- er Foundation to produce a cents Dec. 30, shortly after IDF began air He also said that defense stocks don’t tend dent of her own public-relations firm. strikes Dec. 27 in Gaza and rockets from series of 20-minute inter- Among those Dworkin has tapped to help to fare well shortly after a new president is views with local leaders, Gaza began striking targets in southern Is- elected, but in the past they have outper- produce the series is Jay Nelson, former pro- launched Dec. 22 at duction executive at Detroit Public Television. rael. formed expectations during the first years of www.twenty2six.com. And he has five former or current stu- Victor Allgeier, director of investor rela- the Clinton and Carter administrations. Dworkin tions for Arotech (Nasdaq: ARTX) and pres- “The goal is to try to dents of the University of Michigan and two at Arotech has been hoping to see its share ident of New York-based TTC Group, said his take these 20-minute windows in key lead- universities in New York and Indiana price climb back above $1 before Nasdaq office has fielded a steady stream of queries ers’ lives to try to help inspire younger peo- spreading the word — electronically — lifts a current freeze on delisting proceed- since the latest hostilities began. ple,” Dworkin said. about the new Web site and series. ings for companies that remain below that The David is in heavy deployment The Sphinx Organization provides classi- “I think it’s very important we don’t mar- price for more than 30 days. around the Gaza Strip. Israel has main- cal music education and competition for ket this in the traditional ways; it has to be tained a blockade around the tiny territory Arotech was trading below $1 nearly black and Latino students. through online, guerrilla marketing,” he since Hamas took control in 2007. three weeks before the suspension went Dworkin, who serves as executive pro- said. “The goal is this would eventually be a “I know this past week we have been get- into effect and Nasdaq in late December ex- ducer and host of the “Twenty2Six” series, national project.” ting a volume of calls from investors specu- tended it until April 20. did initial interviews with Detroit civil The series already is on Facebook and lating about the future of (the David),” he Arotech makes battery and power sys- rights leader Arthur Johnson; Detroit Sym- MySpace, and Dworkin hopes to also raise said. “But I can’t be sure how much that ties tems, military and commercial simulation phony Orchestra music director Leonard awareness among schools and teachers who to the stock price.” and training software, as well as armored Slatkin; Bloomfield Hills attorney Howard could incorporate the interviews into some To date, Arotech’s subsidiary, MDT Armor, vehicles for the military. It is awaiting Hertz, whose clients include rapper Em- of their class work, he said. has manufactured more than 150 units of word sometime during the first quarter on inem; Zingerman’s Deli founder Paul Sagi- “There’s only so much time I can commit the David in Auburn, Ala., and completed a possible contract with the government of naw; and Ann Arbor Mayor John Hieftje. to this — my hope is to bring more people finishing work on the vehicles in Israel. India, for a version of the David. In his interviews, Dworkin focuses on the on who can help carry the project forward,” Up to 700 vehicles could be produced by Arotech CEO Robert Ehrlich did not re- pivotal points in the subjects’ lives that Dworkin said. at least three companies under Israel’s con- spond to requests for comment last week, helped to bring them to where they are today. “My major development focus and priori- tract for the David. and Allgeier said the company would not “Twenty2Six” stresses the roles education ties must be with Sphinx, but I’m certainly Cai Von Rumohr, managing director for comment on the current status of its Israel and family play in helping youth become suc- letting the people in the funding world Cowen & Co. in Boston who tracks defense contract. cessful in their lives, Dworkin said. know I believe in this project.” companies, also said the sector appeared to Chad Halcom: (313) 446-6796, He’s established an eight-member board Sherri Begin Welch: (313) 446-1694, be undervalued and would likely do better [email protected] of directors to help guide development of [email protected] 20090112-NEWS--0007-NAT-CCI-CD_-- 1/9/2009 5:14 PM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 7

Businesses battle Let Weight Watchers Help Your Employees Have a Healthy 2009

ergonomics rules Be a Part of LANSING — Michigan business- a general clause in Michigan Occupa- es aim to prevent a long-discussed tional Safety & Health Administration state ergonomics standard from law, requiring employers to provide NEW taking a key step forward this week. a workplace free from recognized A Wednesday joint meeting of the hazards that are causing, or likely to General Industry Safety Standards Com- cause, death or serious physical mission and the Occupa- harm to the employee. tional Health Standards Program Martha Yoder, deputy Commission could move Capitol director of MIOSHA, said ahead development of the current clause re- rules governing how em- Briefings quires considerable ployers must identify and Better employee health leads to analysis of a workplace address conditions that and a higher standard of a healthier bottom line - and could put workers at risk proof than if a rule were for job-related injuries Weight Watchers can help. in place. She said caused by repetitive mo- MIOSHA’s position is tion, force and other fac- only that the process that Our Workplace Wellness Initiative: tors. provides for developing The workplace er- s SAVESYOUMONEYONHEALTH rules “needs to be allowed gonomics standard has Amy Lane care premiums to happen.” been in dispute for years, One argument favor- with business trying to stop devel- s REDUCESABSENTEEISM ing the rule is that it could set opment of a mandatory rule both at clearer standards for employers. s INCREASESPRODUCTIVITY the commissions and in legislation. “By having a standard in place … One state — California — has its every business is going to know ex- own workplace ergonomics stan- actly what is expected of them,” dards. Here, businesses argue that: said Ken Fletcher, director of gov- There is no proven need for the ernment affairs for the Michigan Call: Sheryl Fellows, mandatory standard; ergonomics- Nurses Association, which is among related workplace injuries have Director of Corporate Communications & Marketing at 248.479.1356 organized labor groups supporting been dropping; Michigan’s workers’ or e-mail: [email protected] the rule. comp system gives incentive for em- He said 52 percent of all nurses ployers to have safe workplaces; and complain of chronic back pain, and compliance would be costly. health care workers represent a 888-3-FLORINE | 888-3-florine.com “It’s not the time to be recom- large number of workers’ comp ©2009 Weight Watchers International, Inc., owner of the WEIGHT WATCHERS registered trademarks. All rights reserved. mending and moving forward with claims, stemming from repetitive an expensive and unnecessary reg- motions and tasks such as lifting, ulation,” said Wendy Block, direc- repositioning and moving patients tor of health policy and human re- and other elements of patient care. sources at the Michigan Chamber of Fletcher said materials attached Commerce. to the proposed rule, illustrating “Employers that don’t have a sin- examples of ways employers can gle injury on their books would pos- comply, contradict business’ con- sibly have to reconfigure work- tentions. places, work stations, to address “It hardly seems expensive or this.” burdensome,” he said. The rule would establish mini- Organizations fighting the rule Did You Get the Message? mum requirements for employee ergonomic awareness training and include the Associated Builders and First Tech Direct named to Microsoft Dynamics® Inner Circle Contractors of Michigan, the Detroit for employers to assess and re- Top 1% of Microsoft Dynamics® Partners Worldwide spond to workplace situations that Regional Chamber, the Michigan Asso- may contribute to musculoskeletal ciation of Home Builders, the Michigan disorders. Employers would have Association of Insurance Agents, the to eliminate, reduce or control er- Michigan Association of Realtors, the gonomic hazards “where economi- Michigan Grocers Association, the cally and technically feasible.” Michigan Association of Health Plans, ® the Michigan Health & Hospital Associ- first tech direct Microsoft Dynamics Employers with an effective er- Presidents Club gonomics program by the time the ation, the Michigan Lumber & Building more than software rule is in place would be considered Material Association, and the Michi- compliant. Most that would cur- gan Manufacturers Association. rently fall into that category are large employers, business officials Comings & goings First Tech Direct specializes in selecting, implementing, say. deploying and managing Microsoft Dynamics GP, Microsoft Dynamics Tricia Kinley, director of tax Your Microsoft Dynamics Those supporting a rule say em- SL, Microsoft Dynamics CRM (Customer Relationship Management) ® policy and economic development Partner ployers can reduce injuries and and Microsoft Dynamics AX. First Tech Direct offers extensive at the Michigan Chamber of Com- first tech direct costs by instituting ergonomics pro- Microsoft Dynamics experience and proven methodologies that merce, has been named director of more than software grams that can lead to more produc- will increase your business’ efficiency, productivity state government affairs for John- tive and healthy employees. Er- and profitability. GROW YOUR BUSINESS son & Johnson’s Michigan, Illinois gonomic hazards are also estimated MICROSOFT DYNAMICS to account for about 40 percent of and Wisconsin region. >ĞƚDŝĐƌŽƐŽŌǇŶĂŵŝĐƐΠZDƐŚŽǁǇŽƵŚŽǁ Cindy Peruchietti, previous chief ƚŽŐĞƚƚŚĞŵŽƐƚŽƵƚŽĨĞǀĞƌǇŽƉƉŽƌƚƵŶŝƚǇ͘ƐWITH workers’ compensation claims paid ǇŽƵŐƌŽǁ͕ǁŝůůǇŽƵƌƉĞŽƉůĞďĞĂďůĞƚŽ ® CRM in Michigan in 2006 and 2007. administrative officer for the Early ĞīĞĐƟǀĞůǇƐŚĂƌĞŬĞǇŝŶĨŽƌŵĂƟŽŶƚŽƐƚĂǇ Charlie Owens, director of the Na- Childhood Investment Corp., has be- ƉƌŽĚƵĐƟǀĞ͍ƩĞŶĚƚŚŝƐ&ZĞǀĞŶƚĂŶĚůĞĂƌŶ ŚŽǁDŝĐƌŽƐŽŌǇŶĂŵŝĐƐZDĐĂŶŐƌŽǁǁŝƚŚ tional Federation of Independent Busi- come chief of staff to Sen. Mike Prusi, Top Killer VARS by ǇŽƵƌĐŽŵƉĂŶǇĂŶĚŬĞĞƉǇŽƵƌƉĞŽƉůĞ ness-Michigan, said the cost of rule D-Ishpeming. She replaces Matt Kur- ĐŽŶŶĞĐƚĞĚĂŶĚƉƌŽĮƚĂďůĞ͘ ta, now deputy chief of staff. Accounting Technology compliance would be greater than :ĂŶƵĂƌǇϮϮ͕ϮϬϬϵ Suzanne Miller Allen workers’ comp savings. He said , previous ^ŽƵƚŚĮĞůĚ͕D/ many employers don’t have er- vice president at Sterling Corp., has or *MUST REGISTER FOR THIS&ĞďƌƵĂƌǇϭϭ͕ϮϬϬϵ EVENT AT: gonomics injuries and a voluntary become chief of staff to Rep. Kevin www.firsttechdirect.com/GROW.htm'ƌĂŶĚZĂƉŝĚƐ͕D/ approach has reduced Michigan’s Elsenheimer, R-Bellaire. She in part 2482910138 ACT

ergonomics-related workplace in- takes on a role previously held by CONT 2482910138 juries by nearly 39 percent between Elsenheimer’s district chief of staff, 1998 and 2004, outpacing a 32 per- Brian Mills, who is now deputy chief cent average decline nationwide. of staff. Currently, the state can cite em- Amy Lane: (517) 371-5355, 26622 Woodward Ave., Suite 105, Royal Oak, MI 48067 p: 248.291.0138 f: 248.281.0406 [email protected] ployers for ergonomics issues under [email protected] 20090112-NEWS--0008-NAT-CCI-CD_-- 1/9/2009 6:15 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 12, 2009 OPINION LETTERS Business should get Don’t throw money at DPS Editor: system like the successful busi- Crain’s Detroit Business Swell idea, to have some philan- nesses they have run? They sure welcomes letters to the editor. thropic organization(s) foot the would see where their money was All letters will be considered for behind prison reform bill for the best educator for De- publication, provided they are being spent, what to do for a better troit Public Schools. (Keith Crain, signed and do not defame return for their money, and result “Let’s get the best that money can in a win-win situation for all. he Detroit Regional Chamber and other major busi- individuals or organizations. buy,” Dec. 22.) However, we all Letters may be edited for length Marilyn Henry ness associations recently have expanded their lob- Canton Township should know that money does not and clarity. bying efforts beyond tax policies and business regu- make “the best education.” It takes T Write: Editor, Crain’s Detroit Change how we think lations. They now show up at hearings that decide just how all the best person, dedicated to the Business, 1155 Gratiot Ave., Editor: tax dollars are spent. schools, the students and the com- Detroit, MI 48207-2997. munity to make the best possible We deeply appreciate the front Business has figured that sacred cows and inefficient poli- E-mail: [email protected] educational system. page story “Detroit 3 third degree: cies prevent lawmakers from, say, eliminating the 22 percent For some organization(s) to just Why doesn’t Congress get it?” in surcharge on the Michigan Business Tax. front the money to “buy” a first- in these groups, and their goals are the Nov. 24 issue. Take prisons, for example. As we report in our inaugural class administrator would not united into one sure direction, Lack of consistency in address- Public Policy Quarterly section on Page 11, the state Depart- solve the problems that hold De- there will never be the “best-possi- ing financial crises for Wall Street ble education” for Southeast and manufacturing, inability (or ment of Corrections accounts for 20 percent of the state’s gen- troit’s schools hostage, and would be just as foolish as Congress Michigan students. Until someone unwillingness) to distinguish ef- eral fund spending and is the second-biggest contributor to the handing those billions to Wall ... or foundation ... gets “tough” forts to avoid bankruptcy and to state’s ongoing structural deficit. Michigan’s per-inmate cost Street financial institutions. with the DPS and requires some recognize the Detroit 3’s efforts to is one of the highest in the country. If I were one of the “great foun- accountability and answers to the trim the fat while improving prod- Trimming just one year from the average prison term dations” you are asking to con- huge problems that rule the class- uct quality all represent Washing- ton’s lack of focused, thoughtful would save about $400 million, the nonpartisan Citizens Re- tribute, I certainly would want rooms now, any money con- some accountability from, and nu- tributed would be wasted. leadership. search Council reports. Other business groups project savings merous changes in, the education- I wonder how it would work if, We need to change the conversa- if food service and transportation are privatized. (Sacred cow al system, the teachers, and those say, the heads of those contribut- tion from “me, my” and “the blame alert: The state’s largest employee union also represents state who “run” Detroit’s school system. ing foundation(s) were to become game” to “ours”: serving the col- corrections workers.) Until there is some cohesiveness the “superintendent” and run the See Letters, Page 9 No business group is advocating the release of dangerous offenders. But business groups should unite across the state to demand that lawmakers act to reduce prison operating costs and use some of the savings to bring tax relief for business. TALK ON THE WEB Transplant-rule review a good idea From www.crainsdetroit.com Information on changing careers What you want from Crain’s in 2009: Reader responses to stories and Michigan has one of the country’s strictest “certificate of after age 40. A list of people who have goods or blogs that appeared on Crain’s need” systems to regulate expensive investments in hospital services that they would exchange Carolyn Scully Web site. Comments may be and health care systems. Next month, the state’s 11-member for other goods or services. edited for length and clarity. Certificate of Need Commission may decide to study the rules Paul Nefouse How companies are diversifying on organ transplants that have been largely untouched for their services to capture more work. Jeremy Christianson more than 20 years. A daily 4- to 5-minute newscast tries not related to auto manufacturing. video with summary points of your Anita Mitzel Not surprisingly, hospitals with transplant programs like Success stories key news or comments, with in- from other cities the status quo. But other hospitals, hungry for revenue and as they relate to our challenges. sightful comments and analysis. A page for nonprofit groups that Leslie Andrews wanting to serve their own patients, want a place at this surgi- Alan Coloske seek board members and volun- cal transplant table. And no wonder. The number of candidates teers. Articles or blogs on employment op- A discount to subscribers who get Helen Hicks for transplants is only going to grow. portunities for executive talent. As Jay Greene reports on Page 1, not only have transplant more than one of your publications. Kenneth M. Davies technology and techniques changed, candidates are growing Claire Brender A regular column on the financial services industry. older, well into their 70s for bone marrow transplants. Alerts on changing laws and regula- More stories about young business Michael Coakley Accordingly, as Baby Boomers age, demand for organ tions. professionals, entrepreneurs and inven- Pat Vaquera transplants will grow. And so will the collective national tab tors who are doing well. I want a continued expansion to the for health care. But how old is too old? At some point, federal Arianna Welsh annual Living in the D supplement. The ability to post a résumé for policymakers will have to look at costs and the pros and cons of Joe Scavone prospective employers to view. health care rationing. Stories based on economics, per- Bob Toohey More input from readership, like a Until that debate occurs and a national policy adopted, a haps by area professors. Ed Clarke question-and-answer page or col- An expanded small-business sec- study group to address this specific transplant issue in Michi- umn on current business issues. tion. gan is a good interim step. Please keep spotlighting indus- Katherine Banicki John Sheriff KEITH CRAIN: This year it’s $350 million from NAIAS We’re in a recession in Michi- ple it may be delayed, over $350 million in their dealers represent them at no citizens, who I hope remember gan. Actually, so is the rest of the but it certainly hasn’t economic development. cost. They have to be hurting bad- their lack of interest come Elec- country these days. Some automo- died. That’s a number far ly. There are a couple other small tion Day. They seem more than bile companies are fighting for And we’re going to see greater than any other volume manufacturers that have happy to continue to ignore the re- their lives. Some brands have al- well over five thousand activity that this city chosen to skip Detroit as well. alities of life. If we don’t fix it, we’ll ready been declared dead. automotive journalists has these days or any We have to do everything in our lose it. Sooner or later. But people still love cars, and from all over the world days. It’s simply huge. power to nurture and maintain It’s going to be another great car companies are still competing show up in Detroit to And it’s a very fragile this city’s jewel. show. Perhaps a bit more subdued, vigorously to attract the millions learn everything about $350 million. This year, It is a financial crime that still as it should be, but nevertheless a of customers that remain. This all the new launches, a couple more automo- nothing has been done to expand spectacular show that will give all year, the U.S. will buy more than prototypes and show tive companies have or improve Cobo Center. That is a those journalists plenty to write 10 million cars and trucks. We cars that will be dis- chosen to skip this situation that is embarrassing to about for months to come. don’t know how many over 10 mil- played at the North show. anyone connected to the show. lion, but probably quite a few American International Auto Nissan and Infiniti, which are The fact that every politician in Time is running out. We have to more. Show. one company, must be having a lot the city has somehow managed to do something quickly about Cobo And the love affair with the au- And once again, this interna- more financial problems than they avoid doing anything that would Center or say goodbye to $350 mil- tomobile continues. For some peo- tional show will bring into our city let on when they wouldn’t even let improve Cobo is an outrage to our lion a year — forever. 20090112-NEWS--0009-NAT-CCI-CD_-- 1/9/2009 10:29 AM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Another bubble: The productivity swap The dot-com all do every day. are they trying to kid? No one has yet quantified the la- metic, to compile the statistics.) bubble was They make Tom Pick up a phone to buy goods or bor we do free of charge on behalf This is not our scariest bubble. painful, but we Sawyer’s fence- services or to straighten out a of the very companies we patron- But when you reach the fourth key- survived. We painting deal problem with something you al- ize. The onslaught — self-service pad menu while trying unsuccess- are now trapped with Huck Finn ready bought. How many times gasoline — was so blatant that the fully to find a business’ nearest in the overlever- look like child’s have you marched through menus, productivity swappers felt obliged store ... at that moment the financial aged, overreach- play. The num- listening to instructions, punching to go high-tech. Gas pumping, after institutions bubble might seem triv- ing financial in- ber-crunchers, in numbers ... and wound up all, is physical labor. ial by comparison. stitutions though, have where you started? For every tick of productivity a Maybe that’s the best way to ap- bubble. It’s fear- hidden the truth. Countless times. Which puts you customer expends, productivity as- proach it. Psarouthakis Ferguson some, but we Productivity at the cutting edge of the coming cribed to that company should be John Psarouthakis, of Ann Ar- will survive. has always been the linchpin of productivity swap bubble. Instead reduced two ticks: one because it bor, is a semiretired entrepreneur That siren you hear is an alert to America’s economic prowess. We of hiring a pleasant (and produc- didn’t do the work, another because who founded a Fortune 500 compa- what’s next: the productivity swap get ’er done like no one else on tive) human being to help you find it outsourced the work, making it a ny on his dining room table. Tom bubble. You heard it here first. Earth. Or so the experts have said, what you want, or repair the lemon debit. (If the company put a human Ferguson, of Sidney, is a semire- Unlike “credit swaps,” productiv- from the good old manufacturing you bought, these companies have being on the line to talk with you, tired musical entertainer. They ity swaps are easily recognized. economy right on into the service found a low-cost substitute. They but that human being is in Calcutta, nonetheless agree on a remarkable What’s more they are something we and information economy. Who have you do the grunt work. you need trigonometry, not arith- number of pressing issues.

LETTERS CONTINUED ■ From Page 8 lective interests of present and future citizens of this country striv- ing for sustainability as a nation and throughout the world. Closer to home, we must do the same here in Michigan. We must begin to have new and different conversations, conversing about what’s right and great in Michi- gan, instead of dwelling on the negatives and perpetuating the myth of Michigan’s mediocrity. It’s time for every Michigan citi- zen to stand up and applaud our marvelous state, comprising all its villages, towns, cities and the natural beauty that abounds everywhere in our two peninsulas. We’re grateful that job prospects never lured us else- where. There are wonderful opportunities for everyone in our great state. Our fervent hope is that trans- formational leadership for our country and our state will open wider our doors to enduring success: for the world, the country — and for Michigan. And we cannot lean on our leaders. Each one of us needs to take an active and enthusiastic role. Where can we begin? Here are a few suggestions: First, redesign Leadership Detroit to engage its participants in identifying Michi- gan’s key issues and posing potential solutions. Ideally, other leadership groups across the state should also organize these kinds of conversations. Second, redesign the Mackinac Leadership Conference to become a statewide strategic thinking and decision-making conference to move Michigan forward, using the work of the leadership groups as a foundation. Third, bring community, business and nonprofit leaders from around the state together with leaders from the state executive and legislative branches to design short- and long-term priorities that are based upon the outcomes of the Mackinac conference. It is only by changing the conversation and engaging in new thinking that we will change the paradigm and the negative stereo- type of Detroit and Michigan. Christina Pitts Lynne Aldrich Pitts-Aldrich Associates Grosse Pointe Woodss 20090112-NEWS--0010-NAT-CCI-CD_-- 1/9/2009 10:31 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS January 12, 2009 Economic bust means boom for pawnbrokers

BY NANCY KAFFER storage fees. Pawnbrokers must send CRAIN’S DETROIT BUSINESS thumbprints taken with every loan to law enforcement officials. The Tuesday before Christmas, snow was Loans are generally made for between 10 falling by 9 a.m. But that didn’t deter the percent and 20 percent of the value, of the dozen people queuing up outside American item, Silver said, and items are sold at 60 Jewelry and Loan. percent to 70 percent below retail. At the 50,000-square-foot Detroit pawn- Those prices, pawnbrokers say, are at- shop, housed in a converted bowling alley, tracting a different kind of retail clientele. the storage areas are chockablock with tele- “I’m seeing a lot more people from the visions, DVD players, fur coats, even a Bent- suburbs,” Gornbein said. ley that a customer pawned for $10,000, said “People that normally go to branded Seth Gold, son of owner Les Gold. stores are coming here because they can As the economy worsens, American Jew- save tremendous amounts,” Les Gold said. elry and Loan has seen a 20 percent increase Pawnbrokers say the cycle is predictable, in its short-term loan business, and retail that an economic downturn always means revenue has grown by $1 million since last increased business. When Les Gold sees a year. These days, said Les Gold, the pawn- line outside the shop, he’s not surprised to shop is making about 600 loans daily and ex- open the newspaper and read about an in- pects to end the year with roughly $4 million crease in unemployment. in retail sales. The Golds say about 85 percent of pawned Industry statistics weren’t available from goods are redeemed. Silver says it’s about 92 the Keller, Texas-based National Pawnbro- percent at his shop. Gornbein said the re- kers’ Association or from the NPA’s Michigan demption rate at her shop has dropped late- chapter, but other pawnbrokers say they’re NATHAN SKID/CRAIN’S DETROIT BUSINESS ly, from 85 percent to 82 percent. making an increasing number of loans. And Seth Gold and Theda Steele look at a Rolex watch at American Jewelry and Loan in Detroit. But the business boom is finely balanced: retail sales, down across almost all main- If fewer customers redeem items, it could stream sectors, are stable or increasing at with a $1 a month storage fee. It’s the lowest short-term loans have increased by 6 per- spell trouble for pawnbrokers, Les Gold said area pawnshops. pawnbroker interest rate in the nation, Gold cent to 10 percent, or an average of about 150 — redemption’s a better deal than forfeit “When times are good, people are care- said, and that means pawnbrokers depend loans a day. Retail sales at his 1,400-square- and sales, which for the Golds include hous- less, and they spend too much,” said Lew Sil- on volume to bring in revenue. foot shop have remained steady, at about ing bulky, low-margin items like televisions ver, owner of Southfield-based Lew Silver Dia- Southfield-based Norman’s Jewelry and Loan $1.5 million a year. and computers. mond. “When times are bad, they don’t have owner Sharon Gornbein, who handles jewel- “We do about 70,000 transactions a year “If I’m making 600 loans a day, and (80 the money, so they need it. We’re kind of an ry and furs, said business is up 50 percent, av- here, including pawn, redemptions and percent of the) people are coming back, alternative bank, and pretty much reces- eraging 192 loans a day. The retail side of the sales,” he said. that’s still 120 pieces a day,” he said. “I’m sion-proof.” business is likely to finish the year at $1.5 mil- By law, customers have three months to not selling 120 pieces a day.” State law limits pawnbrokers to 3 percent lion in sales, up from $1.3 million in 2007. redeem pawned goods, but the term can be Nancy Kaffer: (313) 446-0412, interest on the three-month loans they offer, Silver, who only deals in jewelry, said his extended if the customer pays interest and [email protected].

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January 12, 2009 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Quarterly Crain’s Quarterlies: 2nd Mondays Next up Feb. 9: Nancy Kaffer covers small A closer look at issues and topics Jobs/ business and important to Southeast Michigan readers. Economy Detroit and March 9: Wayne County government. Career Call (313) 446-0412 or write nkaffer@ @crain.com. Nancy Kaffer City seeks help from Obama

Detroit officials hope a Democratic administration in Corrections costs Washington, D.C., will mean the adoption of urban-friendly policies — and bring jobs and dollars to the Motor City. President-elect Barack Obama is expected to present a stimulus bill to Congress shortly after taking office Jan. 20. According to recent reports, the handcuff state bill could pump as much as $775 billion into tax cuts, jobless benefits, energy projects and infrastructure improvements over the next two years. Coalition calls for spending cuts, reforms According to a list published in a U.S. Conference of Mayors report, Detroit has 69 potential projects BY AMY LANE costing $832 million. NUMBERS SOME CAPITOL CORRESPONDENT THE COST OF CORRECTIONS The list includes big-ticket items such as $88 million for ANSING — By many measures, In the state’s $9.7 billion general fund budget in fiscal conversion of mercury-vapor CALL A CRIME Michigan’s correctional system is a 2009, corrections spending ranks second and is about 20 percent of the total budget. streetlights to sodium-vapor state government giant. The largest general-fund spending areas are: lights, $106 million for airport L One in three state employees Ⅲ Department of Community Health: $3 billion upgrades and acquisitions, $75 20 percent work in the Michigan Department of Correc- tions million for reconstruction and Of the state budget goes to , prison populations have swelled more Ⅲ Department of Corrections: $1.97 billion than 519 percent since the early 1970s, and resurfacing of 150 miles of corrections. Ⅲ Higher education: $1.94 billion the $2 billion it takes to maintain them con- major roadways and $57 million Ⅲ Revenue sharing: $1.1 billion sumes about 20 percent of state general-fund for the reconstruction of Fort 33 percent spending. Source: Michigan Department of Management and Budget Street from Sibley to Goddard So, it may be no surprise that in a revenue- Road. Of state employees work in the Department of pressed state there are growing calls for re- Public Sector Consultants Inc.; and The Center The list also includes smaller Corrections. form, most recently by business groups, non- for Michigan. projects that could bring dozens profits and think tanks. The signatories didn’t advocate specific of jobs, such as a $2.5 million For some, the issue has become tied to reforms or efficiencies, Paradise Valley streetscape and winning repeal of a $722 million surcharge nor did they specify how open-space improvements that 519 percent attached to the Michigan Business Tax. savings should be used. Amount the state prison But beyond that, many see cor- But they said that the would employ 22, or the $1 population has grown since million Dequindre Trail greenway the 1970s. rections spending as crowding “worst choice is no ac- project employing 35. out current and future state tion,” and they plan to priorities. measure elected In total, the projects would A letter distributed leaders’ perfor- employ 3,766, according to the last month, signed by 14 mance. report. $9,000 How much more the average business, university, “We’re actually “Those resources will be funding Corrections Department municipal and nonprofit going to ask for Boulus shovel-ready projects,” said employee is paid annually leaders, urged Gov. Jen- progress reports on this. Daniel Cherrin, press secretary to compared with other Great nifer Granholm and law- We’re going to try to hold our policymakers Detroit Mayor Ken Cockrel Jr. Lakes states. makers “to quickly and accountable for addressing this issue,” “These are projects that are ready comprehensively reform the said Mike Boulus, executive director of to go as soon as we get the Michigan prison system and cor- the Presidents Council. funds.” 1 of 4 rections policies. The aim Boulus said Michigan is one of Also on the list is $6 million for States that spend more on is long-term four states that spends more on cor- sustainable the purchase of passenger rail corrections than on higher rections than on higher education, education. reforms cars and rehabilitation for and the more that corrections and cost sav- spending “draws down on the general passenger service for the Detroit ings in the fund, the less there is available not just to Ann Arbor rail line. hundreds of mil- for higher education, but other areas of In December, the state $800M lions of dollars per Amount of savings the the budget.” Legislature voted to allocate Detroit Regional Chamber year.” The nonpartisan Citizens Research Council funds for a proposed light rail wants corrections reforms to Those of Michigan, in a June 2008 report on Michi- line along Detroit’s Woodward produce. signing the letter included gan’s corrections system, cited growth in Avenue corridor. Cherrin said city the heads of the Detroit Regional Chamber; corrections spending as the second-largest officials hope federal funds Michigan Nonprofit Association; Small Business contributor to the state’s ongoing structural could be added to the project. Association of Michigan; Presidents Council, budget deficit, after Medicaid spending in- “We’re very well-positioned with State Universities of Michigan; Grand Rapids creases. Area Chamber of Commerce; Michigan Municipal the leadership coming into the And the structural general-fund deficit, League; Michigan Manufacturers Association; White House, leadership with an which the council has projected will reach Michigan Association of Realtors; Detroit Renais- urban agenda that recognizes sance Inc.; Michigan Chamber of Commerce; See Corrections, Page 12 the importance of big cities,” he said. “We’re in a good place to ask for and get regional transportation dollars.” 20090112-NEWS--0012-NAT-CCI-CD_-- 1/9/2009 10:32 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 12, 2009 Policy Quarterly Corrections: Coalition calls for spending reductions, reforms ■ From Page 11

$6 billion by fiscal 2017 without is higher than those of neighbor- substantive state government poli- MICHIGAN’S PRISON POPULATION EXPLODES PRESSING FOR SOLUTIONS ing states — even though Michi- M cy changes, is fueling an unprece- gan sends fewer people to prison Since 1973, Michigan’s prison lower recidivism, and then grew In December, 14 prominent ■ dented push for corrections re- each year — because people stay in forms by the Detroit Regional population has grown from 7,874 substantially in the late 1980s for business, university, municipal s to 48,787, which is down from a factors that included a drop in and nonprofit leaders urged Gov. prison longer in Michigan than na- c Chamber. 2006 peak of 51,454. parole approval rates and an Jennifer Granholm and lawmakers tional or region- e The chamber is calling for an Still, Michigan’s incarceration rate increase in felony dispositions and “to quickly and comprehensively al averages. overhaul that would produce some is higher than in neighboring prison admissions due in part to reform the Michigan prison Length of $800 million in annual savings, to states – even though it sends rising numbers of drug-related system and corrections policies. stay, and “how arrests. The aim is long-term sustainable be applied toward reducing the fewer people to prison each year – that really dri- nearly 22 percent surcharge on because the average prison stay The prison population increased at reforms and cost savings in the hundreds of millions of dollars per ves the spend- Michigan’s new business tax. is longer in Michigan than national a slower but steady rate in the or regional averages. year.” ing,” is a key Why should businesses care 1990s, with growth contributors The nonpartisan Citizens including the change of parole The Detroit Regional Chamber has area upon about the reforms? Research Council of Michigan, in board members from civil servants called for corrections reforms to which the Citi- “It’s their tax dollars that are a June 2008 report on growth in to appointees and new felony produce some $800 million in zens Research paying for this corrections sys- Michigan’s corrections system, sentencing guidelines and a savings, and it wants the savings Council report to be applied toward reducing the Thiel tem,” said Brad Williams, the said Michigan’s prison population “truth-in-sentencing” law that honed in, said chamber’s director of government began to rise in the early to mid- required offenders to serve their nearly 22 percent surcharge on 1970s because of a variety of the Michigan Business Tax. Craig Thiel, the council’s director relations. “And it’s important for minimum sentence in prison of state affairs. factors, including higher felony before consideration for parole, Measures sought by the chamber us to be involved in the details of The council said Michigan has dispositions, increased Citizens Research said. include: it, because it’s important … to get prosecution focus on habitual an average length of stay at least The 2000s have seen years of Ⅲ Updated sentencing and parole rid of the MBT surcharge and to offenders and mandatory guidelines for nonviolent one year longer than the national increase and decrease, the latter lower the general tax liability for sentences for certain drug and criminals. and Great Lakes states’ averages firearm offenses. due in part to changes in all businesses, across the state. Ⅲ Replacement of appointees on each year from 1990 to 2005. Citizens Research said the sentencing laws and parole “We think there’s a role in the policies and Michigan Department the parole board with civil And if average length of stay business community to try and numbers stabilized in the early servants. 1980s amid some sentence of Corrections initiatives to control had been one year shorter during Ⅲ A merit system for inmates who participate in this fight.” reductions, disciplinary credits, prison growth and reduce that period, the state in 2005 would complete education and training. Reforms sought by the chamber high parole approval rates and recidivism. have incarcerated 14,000 fewer include updated sentencing and Ⅲ For low-risk offenders, prisoners, spent about $403 million parole guidelines for nonviolent maximized use of technology such mately help the state craft a formal percent of people released from as electronic tethers and less, and have had 4,700 fewer Cor- criminals; replacement of political request for proposals. Michigan prisons returning with- reporting systems, and rections employees, Citizens Re- appointees on the parole board Caruso also believes that the di- in two years. community-based sentencing. search said. with civil servants; a merit system rector’s cur- The initiative, Ⅲ Competitive bidding of prison The council also said Michigan’s for inmates who complete educa- rent ability to along with de- food services and 10 percent incarceration rate, annual cost per tion and training; and, for low-risk appoint parole clines in admis- reduction in correctional prisoner, and Corrections Depart- administrative expenses. offenders, maximized use of tech- board mem- sions and higher ment employee salaries that aver- Options presented by Detroit nology such as electronic tethers bers provides 51,454 parole rates, has age $9,000 more than other Great and reporting systems, and com- Renaissance Inc. include: the best oppor- Peak of Michigan’s prison helped decrease Lakes states have “caused Michi- munity-based sentencing. Ⅲ Changes in sentencing tunity for di- population, in 2006 the prison popula- gan to spend a larger percentage of The group also seeks competi- guidelines and reduced versity, flexi- tion to 48,787, mandatory minimums. its total expenditures on correc- tive bidding of prison food services bility and from a 2006 peak Ⅲ Investigation of operational tions than the national average.” and wants correctional adminis- influence. 48,787 of 51,454. Caruso changes to control department Senate Majority Leader Mike trative expenses lowered by 10 per- “I think I Michigan’s current prison said the depart- costs and improve efficiency, Bishop, R-Rochester, said salaries cent. population have the abili- ment hopes to con- including in prisoner and wages must be part of the dis- Detroit Renaissance also called transportation, delivery of mental ty to figure out tinue the decline cussion “when you talk about find- on state policymakers in Septem- health services and food service. what types of and accelerate it, ing ways to save in corrections. ber to tackle corrections reforms, 7,874 skills and bal- the latter as a re- We pay a lot for our employees.” laying out options such as changes Michigan’s prison population in ance are need- bers of Michigan’s working group Privatization of areas like food in incarceration policies to reduce 1973 sult of assistance ed on our pa- have talked to a host of interests service and transportation is an- the number of prisoners and from the Council of touched by the corrections system, role board,” other area of potential savings, he length of stay, and operational sav- State Governments. including state officials, local law- she said. said. ings. The Lexington, enforcement representatives, Even as Senate Republicans in 2007 op- Corrections Ky.-based council has been work- sheriffs, prosecutors, employment- changes are debated, the state is ing with a bipartisan group of posed changes in sentencing Director Patri- service providers, and communi- seeing gains in curtailing prison Michigan House and Senate law- guidelines proposed by Granholm, cia Caruso said ty-based organizations. population growth. makers and department directors citing public safety and other con- she welcomes Thompson said the Justice Cen- One key effort is the Michigan to analyze the state prison popula- cerns. the interest on ter soon will “be releasing a slew Prisoner ReEntry Initiative, tion and system and to help policy- Granholm deputy press secre- the part of busi- of findings and also presenting which positions individuals so makers design strategies that can tary Megan Brown said the gover- ness and saw some options that will save the they are better candidates for pa- reduce recidivism and increase nor wants “true corrections re- the December state a lot of money, and we also role, from the day public safety, as forms that will help us reduce our corrections let- think have a better impact on that they enter well as policy op- crime than current policy.” costs, but only in ways that will ter from the var- not jeopardize public safety.” Caruso the prison sys- tions to reduce He declined to state specifics. ious groups as We can’t afford to Granholm plans this year to again tem. corrections costs. The Justice Center is scheduled to “very significant,” because of “the “ seek reforms, but Brown declined The ini- The council’s present its report on analyses and diversity of groups who signed it keep doing to discuss specifics prior to the tiative in- Justice Center, a policy options to lawmakers and and the clear level of commitment Council of State Government re- cludes what we’ve national nonpar- stakeholders on Jan. 22 in the to see change occur.” port. measur- tisan organiza- Capitol. Caruso said the department The Detroit chamber hopes poli- ing and been doing tion, works with An early Justice Center snap- shares the Detroit chamber’s in- states to help cymakers in Lansing will put the address- shot of Michigan notes that: terest in further gains in areas like for the past them get “the best issue high on their 2009 agendas. ing the Ⅲ Despite declines in violent technology, in which she said the possible return in Williams said the Detroit cham- prisoner’s crime and property crime over the state continues to invest, and a 30 years. terms of public ber is offering its proposals as “the risks, past decade, Michigan’s violent prisoner merit system that could ” safety” and rein- beginning of the conversation” needs and crime rate in 2006 was higher than help reduce recidivism. Brad Williams, vest savings “in and is interested in working with strengths; identi- the national average. She said she does not think that Detroit Regional Chamber strategies that lawmakers, business groups and Ⅲ High failure rates among indi- opening food service to private fying housing, will get you better others who have “good ideas … to companies is “the panacea that employment and outcomes,” said viduals on community supervi- save money and keep the state many people think it is” and is not services to be used upon release; Justice Center Director Michael sion are contributing to annual safe.” convinced of the savings, but she and working post-release with a Thompson. prison admissions. “We can’t afford to keep doing is supportive of exploring the idea. network of community supports The center’s staff has been in Ⅲ Michigan has had one of the what we’ve been doing for the last Caruso said the department has and mentors. Caruso said the pro- Michigan on average every four to highest annual costs per prisoner 30 years,” he said. issued a request for information to gram is reducing recidivism that six weeks, in continual phone and in the country. Amy Lane: (517) 371-5355, private vendors that could ulti- has historically shown about 48 e-mail contact, and they or mem- Ⅲ Michigan’s incarceration rate [email protected] 20090112-NEWS--0013-NAT-CCI-CD_-- 1/9/2009 10:54 AM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 13 Policy Quarterly Business leaders: Reform corrections, attack surcharge

This is a critical year for Michigan. The state’s political handling drugs as criminal mental health issues. A major clout in Washington is waning (remember the congression- municipality has just legalized the distribution of heroin. al auto hearings?) at a time when the auto industry needs it We’ve had that debate about needles for years, safe needles, most. The state’s economy is worsening, with predictions of and getting a more rational approach to the drug policy. a budget gap of as much as $1 billion for 2009. Even before That’s, again, long-term. You’ve got to get the easy ones, the the financial crisis, business groups – the chambers of com- early-outs, the nonviolent, but when you start dealing with merce in Grand Rapids and Detroit — had long argued that how we deal with drug offenders, that’s a major shift of the state needed to reduce its costs, in part to offer tax relief thinking in this state. to businesses struggling to pay the Michigan Business Tax surcharge. Leslie Murphy: I think we have to get much more assertive In December, Crain’s Detroit Business invited a group of about demanding our elected officials begin to look at some business lobbyists and opinion leaders to the Lansing of- Hilpert Hollister Hubbard long-term solutions. They are talking about $400 million fices of Honigman Miller Schwartz and Cohn L.L.P. for a two- budget hole this year, and a billion next year at a minimum, hour discussion on specific public-policy initiatives to re- and that’s going to continue with this economic climate. We duce government costs and revive the state economy. have to start making some of those kind of differences in- To sum it up, roundtable participants urged: stead of being forced to cut education, cut some of the things Reforms in state Corrections Department operations that are going to really lead to the revival of the state. that could save hundreds of millions of dollars. More scrutiny of the state budget process by business Kramer: That’s a good segue into something that, I think, is organizations. — puzzles many businesspeople who don’t have a lot of ac- Stronger statewide collaboration on key initiatives, tive legislative lobbying PAC experience. They are frustrat- such as building a logistics and transportation infrastruc- ed. But it’s almost like in Lansing, if you’re in a business ture. group or a businessperson, do you get as much respect as Support for workforce training tied to specific company Congress has given the Detroit 3 CEOs? I mean, really, needs. Miller Murphy Pullano there’s an anti-business feeling, at least from where we sit. The discussion that follows revolves around the correc- There are the common-sense ideas and they never seem to tions budget. For more on the other topics, see www.crainsde- THE PARTICIPANTS get traction. Why? troit.com/Honigman. Mark Hilpert, partner, Honigman Miller and host/sponsor Hubbard: I guess my opinion is not that the Legislature is Mary Kramer: Both chambers of commerce, in Grand for the discussion. anti-business right now. They are anti-tough decision. And Rapids and in Detroit, have had plans they presented in David Hollister, CEO, Prima Civitas Foundation and former the bigger picture on this is that the business community Lansing to both the Legislature and the governor — ideas on mayor, city of Lansing. has never engaged in the appropriations process to the level reinventing government, reducing the cost of government Sarah Hubbard, vice president, government relations, we’re doing now. and freeing up resources for things that would make Michi- Detroit Regional Chamber. That’s something as a chamber we’ve decided strategical- gan more competitive. Sharon Miller, dean, economic and workforce ly is a place we need to be. We’ve always engaged, and Mark But that was before the Wall Street meltdown and that development, Oakland Community College. Hilpert can confirm, in the itty-bitty details of tax policy, in was before the Detroit 3 CEOs went to Washington to try to Leslie Murphy, past chair, American Institute of Certified the smallest details of environmental policy, in labor policy, get the money to bridge the financial crisis they are in. Public Accountants and chair, Detroit Regional Chamber. but we have never as a business community been in the day- Given the financial crisis, should the chambers’ agendas Gary Pullano, managing editor, Grand Rapids Business to-day, hand-to-hand combat of the appropriations process, change? What’s the best way to reduce the cost of state gov- Journal. except to say, you should cut taxes for businesses, therefore, ernment? Can we get rid of the surcharge on the Michigan Mary Kramer, publisher of Crain’s Detroit Business, was that will reduce spending by the state government. Business Tax? the moderator. Amy Lane, Crain’s Capitol reporter, also This is a completely brave new world for the business participated. community to engage and become literally experts in the Sarah Hubbard: We propose long-term government reforms area of corrections. — in the corrections area in particular — because we be- The appropriations members in the state very rarely get lieve there’s the greatest opportunity for savings. MORE DISCUSSION ON THE WEB the kind of counsel from people representing the business We need policy changes now so we can reap savings going This is part of a series of surveys and roundtables co- community that they really need. And I think the business forward, knowing we’re probably going to have a tough sponsored by Crain’s Detroit Business and Honigman Miller community as our actual members are used to coming to economy for at least another year, maybe longer. Schwartz and Cohn L.L.P. on key business issues. An edited Lansing and saying, “this is what we want,” and we get Our position is that savings would be tied directly to the transcript of the discussion on this topic and state some satisfaction, you know, at least some compromise re- appropriations, workforce retraining, transportation and the lated to what we want, related to MBT or those traditional reduction in cost to business through the MBT surcharge on role of philanthropy can be found at www.crainsdetroit.com/ a dollar-for-dollar basis. Others have other opinions on Honigman. To download a podcast, go to www.crainsdetroit areas. Now we’re asking for something really hard, and they where those savings ought to be used, but we think it’s so .com/multimedia. don’t know what to do with us. critical right now that you do everything you can to retain the businesses you have, let alone attract new ones. The im- Hollister: The largest UAW local is UAW 6000, which is cor- pact of Michigan Business Tax surcharge is very tough on rections. If you think you’re going up against some rookies, Mark Hilpert: One of the biggest disparities is the length of those that are struggling to stay in business. When a busi- you’re kidding yourself. When you walk in the room, these the sentence, right? That won’t be something immediate. ness decides to leave the state, they are not going to have a folks know it. press conference and tell us they are leaving because of the Hubbard: If we reduce the average stay of a prisoner in the MBT surcharge. They are going to pack up and go. Kramer: The UAW is very powerful. What would happen if Michigan correction system by one year, we would save $400 the largest business-related political action committees in million. Kramer: David, you have probably a unique perspective at Michigan created a “Michigan promise?” What if they said: this table of having been in the Legislature and having been “We contributed, collectively, X amount of dollars to cam- Kramer: Who’s against it? Are politicians afraid of being a mayor and now in charge of economic development for a paigns at the state level in 2008 or 2006, and we’re going to do accused of letting out the next sensational murder case? major organization in mid-Michigan. a moratorium on contributions until we get some action.” Could you get better traction if you worked collectively? Hubbard: Yes, what we’ve heard is everyone is worried David Hollister: Corrections is eating this state budget about who is going to be getting out of prison early and alive. Hubbard: You know, possibly getting everyone to be in- killing someone. But what we’re talking about is reducing The key to this is (state Sen. Alan) Cropsey because volved in that kind of effort would be very difficult but I sentences of people who are going to get out anyway. Let’s Cropsey is really the key guy in the Senate side in under- think that is something that would get their attention. say they’re in for 10 years, let them out in nine years. Re- Something, again, you know, in a naive and rhetorical kind standing this. He’s brought in the State Council of Govern- duce sentences for people who don’t have this history of that of way that might get their attention even more is if we all ments, and they’re trying to bring in a bipartisan, consensu- level of violent crime. came in together and said we’re going to oppose every single al, incremental approach to downsizing. If they could link Opponents are taking this to the extreme and saying, budget until you do something about the (MBT) surcharge. that, and the governor would be willing to back off because “well, you want to just let murderers and thugs back out on That includes the budget for arts and the budget for the she knows long-term, if you don’t solve that prison problem, the street,” and that’s just not the reality of it. There is some MEDC and the budget for health care. Every budget, we’re even if you got the (right) tax and you had the best environ- compromise in the middle there that can save money and not letting anything get past us, until you start dealing with ment in the world, it’s eating the state budget. also preserve safety for the Michigan citizens. some of these really tough issues. Two things that are eating the state budget are corrections growth and health care. And it’s not just Medicaid. It’s Gary Pullano: Bill Van Regenmorter (former West Michi- Kramer: Like corrections? state employees, state retirees, state teachers, and prison gan lawmaker) made his living off of some of the toughening costs, and they are all interrelated. of the laws and legislation. So you would think that they Hubbard: Like corrections. No offense to anybody who gets The Council of State Governments report is due in Febru- would need to go back and re-evaluate some of those actions funding right now, but we all need to be part of the solution. ary or March. A lot will depend on that. Until Cropsey is and whether the same conditions exist or the political cli- And the universities are going to do better if Corrections is- comfortable he’s got political cover and he’s looking at the mate has changed enough to make those things happen. n’t taking up huge chunks of the budget, as will the hospitals National Council of Legislators to give him that cover, my and everyone else who gets state funding, yet they don’t see guess is very little will happen. Hollister: This all relates to our drug policy and how we are it as their problem. 20090112-NEWS--0014-NAT-CCI-CD_-- 1/9/2009 10:28 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 12, 2009

Policy Quarterly Business groups increase emphasis on cutting state spending

BY AMY LANE son, Director of Government Rela- Rich Studley The rising cost of health care, to state employee health benefits. CAPITOL CORRESPONDENT tions Brad Williams, to devote said he thinks which Medicaid is a major con- “While these options are not in- time to the state appropriations some progress tributing factor, ranked as the tended to provide relief for the LANSING — In 2007, as lawmak- and budget process. An initial big was made, but third highest area of concern in a state budget in the near term, im- ers moved through crafting the target: corrections spending. (See it’s important new government affairs survey of plementation of substantial struc- new Michigan Business Tax and story, Page 11.) for business to Grand Rapids chamber members, tural reforms will preclude the then toward a budget crisis that It’s a new involvement for the continue focus said Jared Rodriguez, vice presi- year-to-year budget cuts and tax produced the ill-fated service tax, chamber that’s included research- on that area. dent of government affairs. increases that have been used in which was subsequently repealed ing corrections and developing po- “For several The next highest concern was the past to balance the budget,” and replaced with an MBT sur- sitions and recommending oppor- years now, charge, the Detroit Regional Cham- management of the state budget. said Detroit Renaissance Presi- tunities for savings. Studley we’ve been in a The chamber sees Medicaid re- dent Doug Rothwell at the time. ber laid a new course. “We just know that we can’t situation where form as one way the state could “These actions are needed to re- The group decided to increase continue with the spending that the appropriations process and the find savings to lessen businesses’ store the state’s fiscal health over its involvement with state spend- we have now, and so we have to be demand for ever-higher govern- tax burden, in- ing — an area where it said it saw at the table helping to guide to re- ment spending has been driving the next decade cluding the MBT too little progress being made. duce spending,” Hubbard said. tax policy, and that’s not a good and lay the “As we were completing the A few years ago, the Michigan thing for state government or for surcharge. The We just can’t let the foundation for Michigan Business Tax and then Chamber of Commerce and the Michi- employers or employees,” Studley group is increas- “ future econom- preparing for a real budget show- gan Association of Realtors under- said. ing its focus on spenders be the ic prosperity.” down, yet seeing very little action took an effort to inject better bud- The Detroit chamber sees cor- the state appro- Bill Rustem, toward any long-term reforms or geting concepts and a new process rections reform as a way to reduce priations experts, because they Public Sector even short-term savings, we just for setting state spending priori- state spending and produce some process, both president and came to the realization that we ties through a team that worked $800 million in savings, to be ap- with existing will never seek CEO, said the needed to be more active on the with lawmakers to put in place plied toward reducing the nearly government af- report under- spending side, just as we are in some of the ideas in the book The 22 percent surcharge on the MBT. fairs staff and reductions. scored height- policy,” said Sarah Hubbard, vice Price of Government: Getting the On the west side of the state, the with two new ” ened business president of government rela- Results We Need in an Age of Per- Grand Rapids Area Chamber of Com- people the cham- Sarah Hubbard, emphasis on the tions. manent Fiscal Crisis. merce is looking at Medicaid re- ber plans to hire Detroit Regional Chamber budget and was The chamber added a staff per- Chamber President and CEO form and cost containment. who will work a message to on directives legislators and from the chamber’s fall policy con- policymakers that “you need to get ference as well as appropriations, control of these expenditures that Rodriguez said. are eating the budget alive.” 2009 SEASON TICKETS Underlying business activism is He said that the business com- concern over Michigan’s growing munity’s engagement in such is- budgetary imbalance between sues may help elected officials ON SALE NOW! spending pressures and revenue. make tough decisions. In a 2008 study, the Citizens Re- That’s one goal of the Michigan search Council of Michigan said that Manufacturers Association, which $ nearly every area of the state bud- plans to make tackling the struc- AS LOW AS 243 get faces spending pressure in- tural deficit a major piece of its up- creases that outpace projected rev- coming legislative agenda. enue growth. “I think we see our role as bring- In the general fund, corrections ing some political will to address and health care are major causes the hard problems,” said Mike of the deficit. Johnson, vice president of govern- The council has projected that ment affairs at the MMA. without substantive policy Still, business will be competing changes by fiscal 2017, structural against other vested interests. deficits would grow to $6 billion in “Every item in the budget has the state’s general fund and $3.6 proponents and opponents, which billion in the SAF. is what makes balancing the bud- Detroit Renaissance Inc. weighed get such a challenge,” said Leslee in on the structural deficit last Fritz, director of communications September, hiring nonpartisan for the state budget office. think tank Public Sector Consultants Hubbard said she sees the busi- Inc. for a report that laid out gov- ness community’s engagement as ernment reforms that in 10 years continuing to evolve. could produce $800 million in an- “There will likely be some hard nual savings. lessons learned,” she said. “But we The report, submitted to Gov. can’t just let the spenders be the Jennifer Granholm and state leg- experts, because they will never islative leaders, focused on reform seek reductions.” options in corrections, Medicaid, Amy Lane: (517) 371-5355, SEE ALL THE PLAYS. teacher retirement benefits and [email protected] CATCH ALL THE ACTION.

Guarantee you’ll be there all season long. CRAIN’S SEEKS NOMINATIONS FOR TOP CFOS CFOs are often the unsung heroes www.crainsdetroit.com/nominate. Season Ticketholder beneﬁts include: of an organization’s senior Nominations must be received by management team. These Jan. 16. t5JDLFUEJTDPVOUTBWFVQUP leaders are grappling with To be eligible, nominees t0QFOJOH%BZUJDLFUT budget pressure and must be CFOs or hold an increased red tape, and equivalent job. Judges will t'SFFGPPEWPVDIFST are contributing to strategic select winners based on t%JTDPVOUFEQBSLJOHPQUJPOT planning in new ways. excellence in financial or Crain’s Detroit Business is other corporate operational management. Nominees t"OENVDINPSF seeking nominations for its will be considered for public HBNFBOEHBNFQBDLBHFTBMTPBWBJMBCMF third-annual CFO awards to companies, private give recognition to these financial companies and nonprofits. leaders. Questions? Contact Jennette Winners and finalists will be Smith, assistant managing CALL (313) 471-BALL recognized at a June event. editor/Focus, at (313) 446-1622 | To nominate someone, visit or [email protected]. 20090112-NEWS--0015-NAT-CCI-CD_-- 1/9/2009 10:53 AM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 15

BUSINESS DIARY CALENDAR ACQUISITIONS include: downtown Detroit, Lapeer, alumni. Designed to provide employ- Owosso, Adrian, Marquette, Sault TUESDAY ers and job-seekers with a face-to-face United Road, Romulus has acquired ENGINEERING SOCIETY PLANS Ste. Marie, Gaylord, Cadillac/West JAN 13 experience in a professional and per- Linden, N.J.-based Autolog Auto Branch, and Alpena. Diversified sonal environment. Lawrence Tech- Transport. CAREER-CHANGE FAIR Restaurant Holdings Inc. has until Regional Development and the nological University, Southfield. Free. November 2017 to open Buffalo Wild Translinked Project. 4 p.m. The Detroit The Engineering Society of Detroit Contact: (248) 204-4100 or CONTRACTS Wings restaurants in these areas. Chapter of the Institute of Internal Au- on Jan. 28 will present an event www.ltu.edu/recovery. ditors and the Institute of Management Maddox Ungar Silberstein P.L.L.C. an- Fusion Health & Fitness Club has that will provide engineer and Accountants. nounced the following companies have opened at 44125 W. 12 Mile Road, Suite With: Wayne technical professionals with Employer Forum on Internships. 8- selected the Bingham Farms-based E123 at Twelve Mile Crossing at Foun- County Executive information on alternative careers. 11:30 a.m. Jan. 27. Detroit Regional CPA firm as their independent auditor: tain Walk in Novi. The $8 million, Robert Ficano and Presenters will discuss what it Chamber. A highly informative work- Orlando, Fla.-based Earth Fitness 60,000-square-foot health and fitness Detroit Regional takes to make a career transition, shop that will explain how intern- L.L.C.; Matchpoint Systems Inc., Missis- center features a lap pool and hot tub, Chamber of Com- the skills and training required, ships can be a successful talent-man- sauga, Canada; , full-sized basketball court, two rac- Work Out Loud merce representa- agement strategy for your company. Seekonk Mass.; Geocom Resources quetball courts, an athletic training what job titles to look for, salary tive Gary Corbin. Engineering Society of Detroit, South- , Bellingham, Wash.; area, turf area, and weightlifting range and resources. Colleges, Inc. Digital Year- VisTaTech Cen- field. Free. Contact: (313) 596-0432. , Las Vegas; area. The Michigan-based company universities and training institutes book Inc. Bethesda C0801 ter, Livonia. Free. , Clearwater, Fla.; also operates a Fusion Health & Fit- will be present to provide program Inc. Solar Shore One Contact: (866) 895- Inc. and Solar Shore Two Inc., both of ness Club in Ann Arbor. Web site: and registration information. Inforum Networking & New Member 1851. Welcome. 7:30 a.m. Jan. 29. A net- Matthews, N.C.; Quality Alliance Inc., www.fusionhealth club.com. The event takes place 8-11:30 Ficano working and welcome breakfast with Chesterfield, Va.; Lux Digital Pictures Summit Place Kia, Waterford Town- a.m. at Rock Financial Showplace Inforum board and staff members. Inc., Berkeley, Calif.; NanoAsia Ltd., ship, has opened a second Kia Motors in Novi. Registration begins at 7 Come ready with a 30-second “eleva- Dongguan, Guangdong, China; Trailer- dealership at 41840 Michigan Ave. in a.m. Cost is $30 for ESD tor” speech to introduce yourself to Dragon Inc., Pahrump, Nev.; and Abun- WEDNESDAY Canton Township. The former Dick members; $35 others. the group. Members, $20; nonmem- dant Renewable Energy L.L.C., New- Scott Kia is to be renamed Summit JAN. 14 bers $25. Add $10 to registrations re- burgh, Ore. To register, call (248) 353-0735 or Place Kia. visit www.esd.org. ceived after Jan. 25 and at the door. Homeowner Services of America Inc., 2009 NAIAS Breakfast. 7-9 a.m. Info- rum BASF, WWJ-AM 950. With: Gary Members who join Inforum at this a Saline-based home-remodeling firm, NEW SERVICES event or who became members in the has been selected to build a two-story Allgeier, director of financial ser- Oakland Livingston Human Service vices, Suburban Collection; Sue Cis- COMING EVENTS last six months contact Inforum to at- addition for a home on West Washing- tend this event for free. Westin Book Agency, a Pontiac-based nonprofit chke, senior vice president, sustain- Social Networking Tools. 9 a.m.-noon ton Street in the Old West Side His- Cadillac Hotel, Detroit. Contact: agency, has introduced Wise-Reach, a ability, environment & safety Jan. 22. National Association of toric District in Ann Arbor. Leslee Herrick, (877) 633-3500. program for low-income households engineering, Ford Motor Co.; Rebec- Women Business Owners U Work- City Mission, Detroit, has become a to address sleep conditions for young ca Lindland, director of industry re- shop. Learn about the best ways to use community partner of the Southeast children and improve energy-related search, Global Insights; Elizabeth Michigan program of Leave a Legacy, LinkedIn, Plaxo, Facebook, My Space, home health and safety issues. Tele- Lowery, vice president, environment, and Twitter. Troy Community Center. CALENDAR GUIDELINES a public-awareness campaign con- phone: (248) 209-2692. energy and safety policy, General Mo- $25 members, $40 others. Contact: ducted by the Planned Giving Round- More Calendar items can be found Keller Williams Realty, Ann Arbor, tors Corp.; and Matt Roush, technolo- www.nawbogdc.org. table of Southeast Michigan to in- gy editor, Great Lakes IT Report, on the Web at www.crainsdetroit. spire people to make charitable has created a foreclosure relief division. It includes Realtors, a WWJ-AM 950. Detroit Marriott at the com. Please send news releases bequests. Renaissance Center. $45 members, Recovery Starts Here Career Recep- for Calendar to Calendar, Crain’s lender, title company and a CPA. Tele- 5-9 p.m. Media Genesis, Troy, worked with the $60 others. Contact: www.inforum tion and Workshop. Jan. 22. Detroit Business, 1155 Gratiot phone: (734) 669-0337. Web site: Detroit Regional Chamber, the Michi- Detroit Regional Chamber, Detroit, to www.annarborshortsale.com. michigan.org. Ave., Detroit, MI 48207-2997, or overhaul the chamber’s Web site. The gan Chamber of Commerce, Detroit e-mail cdbdepartments@ Bright House Networks, Livonia, is Renaissance and others. A career net- new site was launched in December at crain.com. You also may submit www.detroitchamber.com. now offering its cable television view- NAIAS Industry Preview Cocktail Re- working reception for displaced workers 24 James Bond movies from “Dr. ception. 5-7 p.m. British-American ers with college degrees, not limited Calendar items in the Calendar Motor City Interactive, Brighton, cre- No” to “Casino Royale” via its Movies Business Council of Michigan. Auto only to Lawrence Tech students and section of crainsdetroit.com. ated, designed and launched a new on Demand/Bond007 channel. The show preview noon-9 p.m. is optional. Web site for Mariners Inn, a nonprofit, movies are available in Business attire. Butzel Long, Detroit. residential substance abuse facility either high-definition or standard- Members: $25 reception only, $100 re- for homeless men in Detroit. The site definition formats. ception and preview. Others: $35 re- is at www.marinersinn.org. ception only, $110 reception and pre- Airfoil Public Relations Inc., South- STARTUPS view. Contact: (313) 570-1632. field, has added solidthinking Inc., a PublicCity PR, 14001 Manhattan Dr., REAL ESTATE Troy-based industrial design/styling software company, to its client roster. Oak Park, specializes in raising the visibility of small- to medium-sized THURSDAY General Motors Corp., Detroit, and businesses. In its first month, it has JAN. 15 COMMERCIAL PROPERTIES INVESTMENT PROPERTY Helm Inc., the Highland Park-based signed four clients including Corner- specialty fulfillment company, an- Super Deal LYON TOWNSHIP/BANK OWNED stone Schools in Detroit, Amae Plas- South Eastern Michigan Facility/ nounced the launch of the official on- 10,000 sq. ft. of retail space located on Hall Rd. 12-unit rental townhouse project available. tic Surgery Center in Bloomfield Hills, Power Plant Engineers Society. 5:30 Across from Partridge Creek Shopping Center Get a great deal on this investment opportunity. line store for GM Restoration Parts. Smokey’s Doghouse Treats in Com- p.m. social hour, 6:30 p.m. dinner, 7 Macomb Twp. LaHood Realty 313-885-5950 Contact Karen Shepherd at 248-290-5300 ext. 311 The site, www.gmrestorationparts. merce Township and the Sports Clubs p.m. program. Jim Newman, managing Established Oakland County Children’s Boutique com, centralizes nearly 20,000 restora- of Novi and West Bloomfield Town- partner, Newman Consulting Group, in upscale downtown community. Owner willing to WATERFRONT PROPERTY tion parts made to manufacturer’s assist buyer. Email for Confidentiality Agreement to: ship. Publicist Jason Brown is Public- Bloomfield Hills, will lead a discussion original specifications from 80 li- [email protected] City’s founder. Telephone: (248) 252- on green building practices. Dimitri’s LARGE 1 ACRE LAKEFRONT LOTS - 15 min from censed manufacturers. Novi/Ann Arbor on all sports lake in Brighton. ALSO, 1687. Web site: www.public on the Avenue, 14316 Michigan Ave., INDUSTRIAL PROPERTY 4100 sf new Lakefront home ready for move-in 90 Servant Systems announced Domino’s citypr.net. Dearborn. $25. RSVP to birwin@ days. Discounts Available.Call 810-220-8060 Pizza Dominican Republic commis- nalco.com. Contact: (248) 388-2828. 48 Acres with 250 feet of Lake Frontage sioned the Ann Arbor software firm OTHER Investment/Hunting/Equestrian/Estate/Develop to install the Domino’s Franchise Of- 50 Min from Detroit (Linden, MI) No motors lake fice System in the multiunit opera- LTI Information Technology, Ann Ar- The State of the Auto Industry. Noon. $392,000 - motivated. (810)444-3510 Adcraft Club of Detroit. David Cole, Off I-75 Grand Blanc Low Lease Rates Low Expenses tion. This is the first international bor, announces its recertification as a ON ORCHARD LAKE chairman of the Center for Automotive On-site Mgmt Exterior Pad Site Available Domino’s multiunit franchisee to ac- Cisco Premier Certified Partner and Now Leasing 83,700 sq. ft. 4 bedroom ranch, 3 1/2 baths on quire the system. Certified Advanced Routing and Research; and John McElroy, host of 1.4 acres premium lot. 248-335-0104 “Autoline Detroit.” San Marino Club, Catellus Group, LLC www.5081commerce.com TechTeam Global Inc., Southfield, a Switching Specialization in the USA. www.waretechindustrialpark.com (810) 695-7700 Troy. $32 members, $27 junior mem- worldwide provider of information The Greater Brighton Chamber of Com- bers (under age 25), $15 students with technology, enterprise support and merce is seeking area businesses inter- business process outsourcing services, ested in hosting Brighton High School ID, $37 others. Contact: (313) 872-7850. AVAILABLE NOW announced the renewal of its global interns for short-term, month-long in- 4,000 to 100,000 sq. ft. single point of contact contract with ternship programs. The internships 2009 NAIAS Luncheon. 11:30 a.m.-1:30 Also 10,000 & 25,000 sq. ft. Ford Motor Co., Dearborn, under which would lead to preparing students for p.m. Detroit Economic Club. Speak- Free Standing Bldgs w/truckwells. TechTeam provides support services career choices as well as working to re- ers include: Tom Walsh, Detroit Free for Ford Motor Co.s IT infrastructure. tain Livingston County’s homegrown Press; and Phil Nussel, Automotive 1 Mile from Metro Airport The Fine Point Group, a Las Vegas- talent. For more information, contact News online. Moderated by Murray REA CONSTRUCTION based consulting firm led by casino Pamela McConeghy at the chamber, Feldman, WJBK-Channel 2. Each at- (734) 946-8730 industry veterans who have worked (810) 227-5086. tendee will receive two weekday tick- with more than 200 gaming properties Weir Manuel Realtors, Birmingham, ets to the 2009 show from the Detroit Also Heavy Industrial across the world has been retained to has been awarded the MD Preferred Auto Dealers Association. 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In- E-MAIL: [email protected] cludes valet service, hors d’oeuvres, INTERNET: AMC Wings Inc., Southfield, a wholly mail to cdbdepartments@ www.crainsdetroit.com/section/classifieds crain.com. Use any Business Diary cocktails and entertainment, owned subsidiary of Diversified strolling dinner, desserts, open bar, Confidential Reply Boxes Available Restaurant Holdings Inc., has amend- item as a model for your release, and look for the appropriate dancing, entertainment. With: Dick PAYMENT: All classified ads must be ed its original area development Purtan, Al Muskavito and Jackie Pur- prepaid. Checks, money order or agreement with Buffalo Wild Wings category. Without complete Crain’s credit approval accepted. tan from WOMC-FM 104.3. Must be Credit cards accepted. , adding nine addi- information, your item will not run. International Inc. Charity Preview ticket holder to at- tional territories in Michigan for fu- See Photos are welcome, but we cannot tend. 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Page 16 CRAIN’S DETROIT BUSINESS January 12, 2009

LAST CALL FOR 20 IN THEIR 20S Detroit Hope Hospital cuts costs to serve poor NOMINATIONS Do you know a 20-something BY JAY GREENE tem, said downtown Detroit has who is someone to watch? CRAIN’S DETROIT BUSINESS enough acute-care beds to accom- Crain’s is looking for young modate patient demand. He said professionals who are making After spending $750,000 on up- the city needs more mental health their grades and renovations last year, services and support for homeless Dr. Ramsay Dass is on a mission to people. mark in reopen 50 acute-care beds at Detroit “We support Dr. Dass’ efforts to the Hope Hospital to serve low-income provide additional safety net ser- region. and uninsured patients cost-effec- vices in the city, and we find his We will tively. passion for health care to be laud- publish In 1995, the Oak Park-based in- able,” Riney said. “We do believe our ternist-turned-businessman spent the ability to run a complex med- 2009 $2.2 million to purchase the shut- ical-surgical hospital will be very class of tered New Center Hospital at 801 Vir- challenging.” 20 in ginia Park. The hospital had Located three blocks from Henry their 20s in the April 20 issue. closed in 1993 because of financial Ford Hospital in the New Center These entrepreneurs and problems. neighborhood, Dass faces a tough creative thinkers may not have Dass renamed the facility Re- NATHAN SKID/CRAIN’S DETROIT BUSINESS health care market in Detroit. made their first million, but naissance Hospital and was its med- Dr. Ramsay Dass, CEO of Detroit Hope Hospital, at the urgent care nurses More than 20 medical centers and station. He says lower costs can help his mission to serve poor Detroiters. they’re living proof that there is ical director. Renaissance closed five hospitals have closed over the work under way by young people in 1999, but was reopened by Dass past 20 years. The last closure was liance for Michigan. For the past two years, four-sto- in 2003 as Detroit Hope. to counter the region’s brain St. John Detroit Riverview Hospital in “It will be tough financially for ry Detroit Hope has leased space “Many times in the past people 2007. drain. him to make a go of it because he for a 22-bed inpatient adult behav- Visit crainsdetroit.com/nominate could not run the hospital for fi- Profit margins and inpatient vol- is looking to serve a population ioral medicine unit on the fourth for our online form. nancial reasons,” Dass said. “I am umes also are flattening because of that is uninsured, underinsured, floor and also runs an urgent care Nominations must be received on a mission to take care of the the poor economy and rising ex- or has Medicare or Medicaid,” center on the first floor. poor of Detroit.” penses, hospital officials say. McCafferty said. “These aren’t Dass said 100-bed Detroit Hope by Jan. 23. Some hospital administrators, “With the closing of (St. John’s) the best payers.” now offers secondary medical Contact Michelle Darwish at however, aren’t so sure downtown Riverview, there certainly is a com- A former hospital administra- care, stressing preventive medi- (313) 446-1621 or Detroit needs more medical-surgi- munity need for this kind of health tor, Chris Allen, now executive di- cine and post-discharge care. [email protected] with cal beds. care for city residents,” said Dennis rector of the Detroit Wayne County “We will work with all commu- questions about the process. Robert Riney, COO with De- McCafferty, director of health poli- Health Authority, also expressed nity and religious congregations: troit-based Henry Ford Health Sys- cy with the Novi-based Economic Al- doubt about the efficacy of adding Baptists, Muslims, Jews,” Dass acute-care beds in Detroit. said. “We let them know we are Allen said effort the past year here and someone from the has been to increase the number of church will follow up to make CAREER primary-care doctors and patient- sure they have meals, medicine, MARKET PLACE counseling and other care.” centered medical homes. Last week, about 10 patients “Adding new beds in this kind were admitted into the newly reno- MOVES of environment is tough with the ANNOUNCEMENTS & BUSINESS & vated second floor, where more SERVICES INVESTMENTS cost of technology,” Allen said. complex medical and surgical pa- FINANCE But Dass has a different idea tients are treated. The hospital BUSINESS SERVICES BUSINESSES FOR SALE how to make the hospital prof- also has a 50-bed unit on the third Seeking a high energy Treasury Man- itable and take care of sick and floor to treat lower-acuity patients. agement Sales Officer, CCM or CTP PART TIME CONTROLLER. Make or keep JET’S PIZZA FRANCHISES IN NORTHERN OHIO needy low-income patients. certification desired or within one year your business financially profitable at Three operating stores with future territorial “We will treat minority pa- of employment, 3 years Treasury Sales less than half the cost. agreement. Call 586-412-0010 “We can attract payers and tients who have high incidence or related experience, bachelor’s degree [email protected]. (Medicaid patients) because of BUSINESS OPPORTUNITIES rates of diabetes, high blood pres- in finance or accounting. Self-motivated our low cost and customer ser- self-starter eager to sell and take respon- sure and high cholesterol, and WE SELL BUSINESSES vices,” Dass said. “Operating sibility beyond job description and con- LEARN WHY OWNING A RECESSION those complica- sult and present to external and internal costs per day at Confidential & Professional Service. RESISTANT SPEED QUEEN COIN LAUNDRY tions,” Dass said. audiences. Collaborates with related IS SO PROFITABLE our hospital are bank personnel and keeps abreast of in- Specialize in Manufacturing, Distribution & Financing & Locations “We won’t do Business -To-Business Service Industries. Free Informational profit seminar held Saturdays $600 to $700. Operating costs dustry developments and clients’ needs. Confidential Business Sale, Inc. 10 am -12 noon. Call for details & reservations. Stays at big hos- “ heart, brain or High caliber sales, communication, and related business skills that anticipate www.ConfidentialBusinessSale.com UNIVERSAL COIN LAUNDRY MACHINERY pitals cost $3,000 per day at our lung surgery. We Detroit Metro Office 313-221-9378 www.universal-laundry.com and address concerns and offer solutions 248-435-6200 to $4,000 a day.” let the big hospi- required to join our team. Equal Oppor- Dass said he hospital are $600 to tals do that.” tunity Employer. FOOD SERVICE Last month, EQUIPMENT & can keep costs Applicants may apply at www.tcfbank.com MERCHANDISE low by using $700. Stays at big Detroit Hope re- under Career Opportunities or fax a resume to LOSE WEIGHT mostly contract ceived provision- (734) 542-2975 or mail to: With Our 100% Fresh Gourmet Meals OFFICE FURNITURE employees. Just hospitals cost al approval from TCF Bank Human Resources • Prepared Locally By Top Chefs eight of the hos- the Chicago- MUST SELL, OFFICE CLOSED $3,000 to $4,000 a 17440 College Parkway, 604-01-J • Delivered To Your Door! Desks $99, Chairs $39, Files $49, Partitions $50, pital’s 100 work- based Joint Com- Livonia, MI 48152 • Guaranteed Fresh Taste! Lateral Files $99, Cubicles, Office Phone Systems ers are paid full- mission, which ac- © 2008 TCF National Bank, Member FDIC Call (248) 548-6404 or (248) 474-3375. day. www.GourmetEverydayDelivery.com time staff, ” credits hospitals including the CRAIN’S MARKET PLACE Dr. Ramsay Dass, and other health hospital admin- MANAGEMENT MISCELLANEOUS WORK! Detroit Hope Hospital care programs. istrator and di- To Place Your Ad Call The hospital also Mercy High School, a Catholic college preparatory Lakotish, Gerald S., CPA, 76, December 30, 2008 - rector of nursing. He plans to hire is certified to accept Medicare and school for young women in Farmington Hills, is Survived by: wife, Carole, Children: Stephen (Zaida), seeking a Director of Institutional Advancement. Visit (313) 446-6068 another 150 full-time or contract Medicaid patients, he said. George, and Mary (Frank) Bommarito Grandfather of or mhsmi.org for job description. Christina and Nicholas Bommarito and Simon employees, depending on patient As part of his contract model, Lakotish. Mr. Lakotish was a Korean War Veteran in Fax (313) 446-1757 volume. the U.S. Army Dass leases space to Flint-based “This helps keep our costs American Medical Careers, which COURT SERVICES MANAGER down as we use them based on LEGAL SERVICES trains students for careers in United States District Court, Eastern Dis- need,” said Dass. nursing, dentistry, dietary and trict of Michigan - EOE. This position is lo- Dass also has hired two hospi- cated in the Court Services department in EXECUTIVE SEPARATION PACKAGE REVIEW medical technology. talists — physicians who special- Detroit, Michigan. The Court Services Man- Dass also leases space to the Ur- ager reports to the Deputy Court Adminis- Separation package review by expert employment law specialist including potential ize in keeping inpatient costs low ban Health Organization, a Detroit- trator and is responsible for providing ad- benefit enhancement or wrongful termination case evaluation while providing high-quality ministrative services to judges’ chambers, Office or telephone/internet appointments within 48 hours of call or email care. He plans to hire a third. based behavioral health care the Clerk’s Office, Probation Department provider. UHO also purchases and Pretrial Services Agency. The Court Flexible fee arrangements The medical staff also includes Services Manager has responsibility for all two internists, a surgeon, a chiro- services from Detroit Hope, in- financial, procurement, space and facilities, Reviews conducted or supervised by 4 Senior Counsel listed in Best Employment cluding laboratory, radiology, and security services provided to the Court. Lawyers of America and Super Lawyers with more than 100 years of combined em- practor, a pediatrician and an ob- physician and food services, he Requires Bachelor’s degree with a mini- ployment law experience handling employee issues involving every major employer stetrician-gynecologist. mum of 5 years of progressively responsi- in Southeast Michigan. Over the past year, Dass has said. ble administrative experience, including at least 3 years in a position with executive Pitt McGehee Palmer Rivers & Golden-117 W. Fourth St., Suite 200, upgraded the hospital’s heating “This place is open for a purpose,” Dass said. “I want to tell level management experience. Must have Royal Oak Mi, 48067. and cooling systems, added a a strong background in finance and ac- nurse call system and renovated everyone that whether you are Call, email or fax Elaine Hesano for an appointment or more information at counting, budget administration. Court Services Manager Vacancy Announcement 248.398.9800, fax 248.398.9804, [email protected]. Please visit our website patient rooms and the surgery de- poor or rich we are open for you.” Jay Greene: (313) 446-0325, and instructions for application can be at www.pittlawpc.com partment, bringing his total in- found at http://www.mied.uscourts.gov. vestment to $6 million, he said. [email protected] 20090112-NEWS--0017-NAT-CCI-CD_-- 1/9/2009 4:18 PM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 17 Transplants: State review ■ From Page 1

“Adding more centers would di- number that has been rising the lute the volume at current centers past three years. even more.” “We could do more than 50. Kar- Several years ago because of low manos’ transplant patients come You’re more than volume, Dearborn-based Oakwood from up north. They could easily Healthcare voluntarily surren- go to Beaumont,” Akhtar said. dered its CON for bone marrow But in the October CON Com- transplants, according to the state mission hearing, Barbara Jack- Department of Community Health. son, an analyst with Blue Cross Blue numbers to us Because of low volume, St. John Shield of Michigan, said the state’s and DMC’s Harper University Hospital largest insurer only could support Grant, Millman & Johnson, in Detroit also dropped their CONs studying the regulations if “com- At for pancreas transplants. pelling evidence” of community P.C.,ZH·UHDSURÀFLHQWJURXSRI However, officials for St. John need is demonstrated. are supporting changes in the pan- “Opening up the standards for FHUWLÀHGSXEOLFDFFRXQWDQWV who creas transplant regulations to review could result in more pro- eliminate the required 12 minimum grams, which could seriously de- believe in developing long-term number, which would allow hospi- plete existing programs, patient relationships with our clients. tals to reinstitute the services, ac- volumes and staffing, reduce qual- cording to testimony at an October ity of care and increase health care CON Commission hearing. costs,” she said. That’s why every account is handled Norma Hagenow, vice chair of On heart-lung and liver trans- E\DFORVHNQLWWHDPRISURIHVVLRQDOV the CON Commission, said it is plant services, Jackson said there likely the commission will appoint is no need to review the standards with one thing in common: your either a work group, a standard ad- because volumes have been stable. visory committee or ask DCH to Kenneth Matzick, Beaumont’s best interest. And that means great look at updating the organ trans- CEO, said the CON Commission personal attention, involved plant standards. should appoint a New rules could committee to de- partners and experienced be ready for re- velop institution- view and possible Patients are specific criteria SURIHVVLRQDOVHUYLFHV approval by Sep- “ for bone marrow tember. being transplant ser- “I have an idea negatively vices with min- we will open it up imum volume 39475 W. Thirteen Mile Road, Suite 200 to consider impacted thresholds. Novi, Michigan 48377 whether the regu- “Given the 248.994.8500 lations need to be if they are fact that bone www.grantmillman.com reviewed,” marrow trans- Hagenow said. forced to plants can now “There hasn’t be performed been a need to leave their on an outpa- change the regula- tient basis and tions in 23 years. existing ... often cost signifi- There have been cantly less than changes in tech- hospital. chemotherapy or nology, and there ” other cancer is a little more in- Ken Matzick, Beaumont CEO treatments, there terest in it now.” are now reasons Dr. Adil Akhtar, director of on- for changing this standard,” he cology services at Beaumont Hos- said in a letter to the CON Com- pital in Troy, said Beaumont mission. wants the CON regulations re- Beaumont has CON approval to vised to make it more convenient conduct kidney and liver trans- for patients and to hold down plants and may seek approval to health care costs. conduct pancreas transplants. If “We already have the pieces in the regulations are changed, Beau- place here, and the additional fi- mont might seek approval for nancial impact would be mini- heart-lung and liver transplants, mal,” Akhtar said. Beaumont has Akhtar said. three bone marrow transplant spe- Dennis McCafferty, director of cialists, lab and imaging technolo- health policy with the Novi-based gy and a dedicated nursing staff, Economic Alliance of Michigan, said he said. additional transplant capacity in “We already diagnose the pa- Michigan is not needed. tient and start the treatment, but However, McCafferty said the then we need to send patients to to- alliance could support expanding tally different teams of doctors, the number of hospitals offering who do the entire testing again,” bone marrow transplants to the Akhtar said. “There is a duplica- western side of the state. tion of services and costs.” “There should be a minimum Akhtar said the cost of bone volume to ensure staff is well- marrow transplant services has equipped and experienced,” Mc- dropped considerably since the Cafferty said. “When too many regulations went into effect 23 places are doing it, patients take a years ago. higher risk.” “Technology has evolved and But Matzick said there are no more people are candidates,” studies that link higher volume Akhtar said. “Used to be just 55 with better outcomes for bone years or younger were recommend- marrow transplants. ed. Now there is no age limit.” “The most compelling argument For patients using their own we believe, however, is that pa- bone marrow, the cost for a trans- tients are being negatively impact- plant could be $75,000, he said. If a ed if they are forced to leave their donor is required, the cost could be existing physician and hospital,” $150,000 to $250,000, he said. he said. “The CON Commission Akhtar said Beaumont could has not studied increased health conduct at least 40 to 50 bone mar- care costs or impacts on the pa- row transplants a year. In 2007, the tients of these transfers.” three bone marrow transplant hos- Jay Greene: (313) 446-0325, pitals performed 536 transplants, a [email protected] 20090112-NEWS--0018,0019-NAT-CCI-CD_-- 1/9/2009 3:01 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 12, 2009

The business of the auto show CCS students Auto suppliers maintain get main floor presence; some cut back BY RYAN BEENE CRAIN’S DETROIT BUSINESS

For the first time, students from Detroit’s College for Creative Studies will show their concept vehicle de- as others go for flash signs on the same floor as the latest creations from Lamborghini and General Motors Corp. at this week’s BY RYAN BEENE Denso plans to display some of its new North American International Auto CRAIN’S DETROIT BUSINESS technologies like an in-vehicle camera Show. that recognizes traffic signs and other Auto suppliers at the North American In- Early last week, the CCS display road features to aid safe driving, a 12.3 ternational Auto Show are maintaining a was moved to the main show floor inch display that replaces a traditional similar presence to years past, even as instead of staying in Cobo Center’s instrument cluster featuring built-in automakers slash their show marketing lower level. night vision and different driver-selected budgets. “It gives CCS a great deal more display modes, hybrid electric power- Four out of the nine auto show supplier exposure, and I think it highlights train components and other technologies. sponsors are local tier-one suppliers, one the fact that going forward, as the Other suppliers with a presence at the short of last year’s group. auto industry tries to recover from auto show are Greenville, S.C.-based And while suppliers tend to keep a low- the economic challenges that it’s Michelin North America Inc., Pittsburgh- key presence at the show and let vehicles facing right now, that design is go- based PPG Industries Inc. and Sirius XM Ra- have the spotlight, some are looking to ing to play a very important role,” dio. raise their profile. said Richard Rogers, president of While Northville-based ZF Group North Johnson Controls Inc. planned to make a CCS. America Operations is still a “Premier splash Sunday at the show’s first press Students will display their de- Sponsor” of this year’s auto show, the conference. signs of projects sponsored by Ford company has scaled back its presence The company was expected to unveil Motor Co., Hyundai Motor Co., Ameri- from last year. its “re3” concept plug-in hybrid electric can Honda Motor Co., the American The company had a hospitality suite in small car, loaded with examples of JCI’s Iron & Steel Institute and the Ameri- Cobo Center’s Ambassador Ballroom latest technology in seating systems, in- can Chemistry Council. overlooking the Detroit River. formation displays, human-machine in- While the student projects all But budget cutbacks, scheduling issues terfaces and sustainable materials and have different requirements set by that are keeping many of the company’s seating foam made from natural sub- their sponsors “they’re always German executives overseas, and cus- stances. long-range research-oriented pro- tomer layoffs have forced cancellation of JCI will also have a second press con- jects,” Rogers said. “It’s always the suite that displayed ZF Group prod- looking out ahead to address ma- ference Tuesday, focused on sustainable ucts and served guests German beer and jor issues that the industry is go- vehicle components and business up- gourmet coffee, ending a seven-year tra- ing to be facing in the future.” dates. The press conferences will be held dition. Those issues are fuel efficiency, in a large meeting room on Cobo Center’s “Budget is obviously the biggest thing. environmental friendliness and second floor, which will also house JCI We were looking at our end numbers for using advanced materials. Public product displays. North America and the region and taking exposure is one benefit of the auto Denso International America Inc., the a big hit, so we wanted to reduce that,” show, but perhaps the biggest as- Southfield-based North American head- said Bryan Johnson, director of corpo- set is the ability for students to net- quarters for its Japanese parent compa- rate affairs and communications for ZF work with those in the industry. ny, is the only supplier to have a display Group. “We do rely on industry for sup- booth on the main show floor. “Another reason was our customers port of the program,” he said. “So “It’s just a way to increase our brand were shifting their personnel so much to be able to make those connec- recognition,” said Bridgette Larose. “It’s that at certain times we didn’t know tions at the show is very valuable a good opportunity to showcase our tech- whom our contacts were going to be the nologies to the auto industry and to con- next day. So, to go and invite a bunch of for us.” NAIAS Ryan Beene: (313) 446-0315, Denso International is the only supplier to have a display booth on sumers and hopefully it will increase our [email protected] the main show floor. awareness.” See Suppliers, Page 19 Display designers get creative with smaller budgets

BY RYAN BEENE Gentile says his company has seen its au- CRAIN’S DETROIT BUSINESS tomotive clients reduce spending by 40 percent to 60 percent from an average display Local auto show display builders have had cost of $1.5 million to $2 million per vehicle to go outside the traditional realms of dis- brand. play building to create captivating displays EEI has used a higher concentration of on a shoestring for the 2009 North American In- lighter-weight materials, modular-based ternational Auto Show. display systems for easier setup and installa- As automakers have reduced their auto tion and more off-the-shelf offices for less- show display budgets by 30 percent to 60 per- costly fabrication. cent, event marketing companies that build EEI built the display for BMW and Mini, the eye-popping displays on the floor of Cobo which cut 50 percent of its auto show budget. Center have used new techniques, materials So the second story and some overhead light- and experiences gleaned from non-automo- ing elements were nixed, and the overall tive clients. footprint was reduced. “Our benefit is that we are diversified into “By and large, the general public is still other service areas outside of auto shows going to have a very exciting experience,” into other areas that are more event market- Gentile said. “From our perspective, (it’s) ing oriented,” said Derek Gentile, CEO of ‘value engineering’ in what we did produce Rochester Hills-based EEI Global. so that it’s less costly to install and pro- “We’ve been applying those event market- duce.” ing principles to everything we do, because Scott Stubbs, CEO of Warren-based H.B. it is different than the tried-and-true way of Stubbs Cos., says the most efficient cost re- doing auto shows. We’ve learned how to do a NATHAN SKID/CRAIN’S DETROIT BUSINESS whole lot more with a lot less budget.” See Display, Page 19 EEI Global built the display for Mini at this year’s auto show. 20090112-NEWS--0019-NAT-CCI-CD_-- 1/9/2009 5:17 PM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 19

The business of the auto show

AUTO SHOW FACTS Key dates: Press Preview. Jan. 11-13. Event planners see late rush of bookings Open only to members of the media. Industry Preview. Jan. 14-15. BY DANIEL DUGGAN year, had paid all their bills, and found that ny’s bottom line looks like. Open to automotive industry CRAIN’S DETROIT BUSINESS they had money left over for a nice auto show Events that are being professionals. party. held, however, are scaled Charity Preview. Jan. 16. When companies started canceling parties “But you’re also getting a really good vibe down compared to what’s Proceeds benefit Michigan’s earlier this year, Denny Freitag worried that for the show now,” she said. “The show floor is typically done in conjunc- children’s charities. this week would be drastically slower than full, the media attendance will be high, so tion with the North American Public Show. Jan. 17-25 usual for her event-planning business. there’s a lot of interest.” International Auto Show, Two parties she was planning, in fact, were While he’s seen a small uptick in business, which kicks off with the Entertainment: Classic rock canceled. Jerome Raska is preparing black-tie Charity Preview stalwarts the Doobie Brothers will So it’s almost a surprise his event planning and floral on Jan. 16. perform during the Charity that she’s so busy this week After the major design company for some last- Galle And in a bittersweet Preview Jan. 16; teen sensations after two different clients minute requests this week. twist, finding a venue at the the Jonas Brothers will play at Joe showed up — on Jan. 2 “ Louis Arena Jan. 18. events like “It’s all going to be last- last minute isn’t as difficult it would normally — asking for a last- minute,” said Raska, presi- be. Take an eco-ride: You can ride minute Charity Pre- dent of Detroit-based Blumz ... “The prime spots are taken, but there are a in some of the newest green view party. GM Style by JRDesigns Inc. “So we’ll be lot of venues that normally have a Charity vehicles on the road and some “It looks like its go- headed for showrooms of the prepared.” Preview event and are open right now,” he ing to be a good show went away, future in Cobo Center’s Michigan While the Townsend Hotel in said, citing the Museum of Contemporary Art De- for me after all,” said Hall. Sponsored by the Michigan we never Birmingham had projected a sign and the Detroit Science Center. Freitag, owner and Economic Development Corp., significantly lower volume of Forte said his clients are asking for creativi- the EcoXperience is a 70,000- president of Detroit- thought hotel stays this year, requests ty instead of lavish spending. square-foot track surrounded by a based Freitag Event De- for rooms has jumped in the landscape that includes trees and sign. parties One party he is throwing will have a movie a waterfall in Cobo’s basement. Freitag isn’t alone. last few weeks, said Tracy theme, with candy and popcorn being served See student work: Detroit’s Others in the hospitality would come back. Fashing, director of sales and in a clever layout. An eclectic selection of College for Creative Studies will industry are seeing a last- marketing. high-end beers will be served rather than hav- have a display on the main floor minute push for events. But it’s starting to “It has outgrown what we ing a full bar service. featuring design work produced John Forte, president and were anticipating,” she said. The cost will be $30-$50 per person, he said, by students. Student projects will CEO of the Troy-based cater- roll in. In general, the planning cy- compared to $150 per person for a full-service include concept-car designs and ing company Forte Belanger, ” cle for events has been much dinner event with wine and an open bar. some results of a CCS class shorter this year due to the project to design a light rail got a request on Tuesday to John Forte, Forte Belanger Forte said three or four of his clients also system for Detroit. cater a 300-person event. economic uncertainty, said are scaling down for reasons beyond their bal- Carol Galle, president of Royal Oak -based Spe- Auto show coverage: Be sure “After the major events like GM Style went ance sheets. They’ve gone for less elaborate to check out away, we never thought parties would come cial D Events Inc. events out of respect for companies that are in www.crainsdetroit.com all week back,” he said. “But it’s starting to roll in.” “A lot of companies don’t know what their trouble. for North American International Driving the last-minute push is greater de- budgets will be beyond 60 days in some cases,” “They told me that they just don’t feel it’s Auto Show commentary, musings mand than first expected, and companies that she said. “So they have to plan in chunks, and the right thing to do in this environment,” and observations by Crain’s found they didn’t fare as badly as they origi- can’t commit to large expenses long-term.” Forte said. reporters Bill Shea and Ryan nally thought they would. Some of her events even have a “Plan A” Daniel Duggan: (313) 446-0414, Beene. Freitag’s two clients reached the end of the and a “Plan B” depending on what the compa- [email protected]

Suppliers: Return Displays: Designers get creative with budgets ■ From Page 18 ■ From Page 18

people to the event two months ahead of time, they ductions come through changes in design and construction. might not even have a job in two months. … It’s very Displays that are more lightweight are easier to assemble, re- targeted, but when the target keeps moving, it’s hard ducing the number of hours needed to set up a display and to decide where it is.” trimming labor costs. Also missing is International Automotive Components “But it really gets down to physical properties – spending Group North America, the Dearborn-based interiors less,” he said. supplier assembled from assets of Southfield-based Stubbs’ automotive customers have reduced their spending Lear Corp. and the now-defunct Collins & Aikman Corp. anywhere from 30 percent to 50 percent over the past 12 Last year, IAC CEO Jim Kam- months. But he says the cuts have had a counterintuitive ef- sickas led a group of industry ex- fect in boosting his bottom line. ecutives and journalists on a tour “We’ve been able to reallocate our workforce and reallocate of the show floor, pointing out ve- our capital into other markets and areas of event marketing,” hicles with a high concentration which are “significantly” more profitable than auto shows, of IAC products. Stubbs said. “For most who joined us, it was “Automotive programs, because they’re so large, they’re a first chance to see what IAC does very price competitive, so the pricing is very aggressive for and in which vehicles the compa- what we do in terms of design, build and logistics, so when ny’s products appear,” David those (automaker) budgets go away, the impact was positive Ladd, executive director of mar- Kamsickas for us because we were able to take those lost dollars and rein- NAIAS keting and communications at vest in other markets.” Workers construct part of a display for the auto show. Many design IAC, said in an e-mail. Stubbs says his company can use some of the working capi- companies are using lighter materials to make them easier to At the time, IAC was a fairly new interiors suppli- tal usually slated for auto shows and put it into projects for his assemble. er, and Ladd says the show was a chance to increase health care, technology and other event marketing customers. ciency and alternative powertrain technologies such as hy- familiarity of the company and its senior manage- “That’s happening right now at CES,” he said, referencing brid electric vehicles — to help spur a more immediate inter- ment with the media and industry officials. last week’s Consumer Electronics Show in Las Vegas. “We’ve est and hopefully boost sales. Ladd emphasized the show is about the cars, but seen a huge amount of growth for our company in these tech- “Because of the reduced budget, we’ve had to narrow down the days before the public arrives are important for nology shows. We’re doing five times more design and produc- and focus more on just those salient critical messages that GM the industry. tion here in technology shows than in automotive.” needs to get out,” he said. “I believe most of (the supplier community) sees It’s not just the Detroit auto show that is seeing a toned- Auto show budgets have been shrinking for roughly the NAIAS Industry Days as a meeting destination for down atmosphere, Gentile says. past 12 months, Stubbs says, which harkens back to auto many key stakeholders, including investors, ana- “All auto shows across the country are being reduced in shows of yesteryear. lysts, trade media and, of course, our customers,” scope, and while Detroit is following suit, it still remains the “We’re really returning the way the car show used to be Ladd said in the e-mail. North American International Auto Show, the most impor- back in the old days, where you lay a car on the carpet and you “Our interior designers love to attend the show to tant show of the year and it puts Detroit right in the global have some simple I.D. towers and a unifying element in the study ever-changing design trends. This includes spotlight,” he said. center of the display area, and that’s it,” he said. studying the public’s reaction to new concept cars — For 2009, that spotlight will be more focused. “The shows really became elaborate in late ’80s and early ’90s in particular their interiors.” Gentile says the General Motors Powertrain display his — we’re going back to the ’60s and ’70s.” Ryan Beene: (313) 446-0315, [email protected] company built will be focused on timely attributes — fuel effi- Ryan Beene: (313) 446-0315, [email protected] 20090112-NEWS--0020-NAT-CCI-CD_-- 1/9/2009 4:23 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 12, 2009 Labor: First up in Congress may be Employee Free Choice Act ■ From Page 3

EFCA and (other laws) would to invoke a blind vote or secret bal- a union organization; but she said side wants if they can’t move along guished in the Senate Finance make it easier and provide addi- lot election overseen by the Nation- individual employees also suffer in time,” she said. Committee since it was co-spon- tional incentives to organize.” al Labor Relations Board. If a majori- fallout of their own from EFCA. Miller Canfield has scheduled a sored by Obama and Sen. Richard Union members accounted for ty approves authorization, the “In most cases, we expect em- series of conferences on the act for Durbin in 2007. 12.1 percent of the total U.S. work- employees are officially unionized. ployers would be aware that orga- clients and other interested compa- That legislation would provide force in 2007, a The EFCA proposes to eliminate nizing is going on,” she said. nies, including three more this companies a credit of 1 percent of slight increase the employee election phase — if a “The issue here for the employers week in Ann Arbor, Detroit and all taxable income if they commit to from 12.0 per- majority of employees sign the is, if the union doesn’t have to clear Lansing. maintain or increase U.S. employ- cent in 2006 ac- cards, a union is in place. a blind vote then maybe some em- ment levels, pay all workers more cording to the “Employers have had an oppor- ployees who didn’t really want the than $7.80 per federal Bureau of tunity for advocacy in the current union may not get a chance to say Respect Act hour and pro- Labor Statistics. process, and to make their case to so with any privacy.” The proposed Respect Act, also vide health in- However, recent employees about what was in Collective bargaining must also pending in the Senate, could come surance to at decades have everyone’s best interest,” said begin almost immediately under as a “follow-up punch” to EFCA if least 60 percent seen the United Stanley Pitts, partner in the Labor EFCA, and if the company and em- enacted early in the year, Nemeth of their workers. Auto Workers and Employment Group at Detroit- ployees have unresolved issues af- said. The bill proposes to narrow But Patricia Fishman membership based Honigman Miller Schwartz and ter 90 days they go before a media- the definition of “supervisor” un- Nemeth, drop from a record 1.5 million in Cohn L.L.P. tor. If the mediator cannot fashion der the National Labor Relations founder and 1979 to less than 465,000 at the end “But with this law, organizers an agreement between the parties Act, so that many employees who managing part- of 2007. Unions as a whole account could get to bypass any chance for within another 90 days, the re- currently don’t have the power to Nemeth ner of Nemeth for just 7.5 percent of the private advocacy, which doesn’t help em- maining issues go before an arbi- organize could do so. Burwell, P.C. in sector workforce. ployees make the best-informed trator for a binding decision. The Respect Act could affect up Detroit, predicts the Patriot Em- Steven Fishman, chairman of the decision. The company could even “The bargaining process now is to 8 million employees nationwide, ployers Act is unlikely to gain Workplace Law Group at Bodman find out a union organization is often its own union-avoidance in terms of whether they count as much legislative momentum or at- L.L.P. in Detroit, which has largely under consideration only after it’s technique for management, on a “supervisors” or “employees” for tract attention from her clients finance and automotive clients, already happened.” first contract,” said Leonard Page, purposes of organization and col- this year. said the legislation provides unions As with other recent labor law former NLRB General Counsel in lective bargaining. an “undemocratic” way to reverse changes, Honigman is going on- 1999-2001 and now of counsel to “Some of our clients are nursing those trends, rather than appeal to line to counsel clients on how to re- Klimist, McKnight Sale McClow & home and elderly care communi- Family Medical Leave Act the employee as a customer. spond and prepare. Pitts said the Canzano P.C. in Southfield. “This ties, where maybe LPNs (licensed Starting Friday, regulatory “Rather than try to become group sponsored three recent We- (EFCA) is unique in that a third practical nurse) might be organized changes to the federal Family Med- more competitive as institutions binars on law changes. Another party might not only provide in- into collective bargaining units but ical Leave Act expand various no- in regaining their market share, Webinar is scheduled Feb. 5, and centive to negotiate, but even end RNs are not because they can as- tification requirements for both with the employee as a kind of cus- Pitts estimated up to 200 clients deciding the terms of a contract.” sign duties to them,” she said. “This employer and employee and ex- tomer, these laws are a way to en- may take part. Beverly Hall Burns, principal at change in the law could lead to ad- tend the time frame for employers trench them even further as more Kim Pendrick, associate princi- the Labor and Employment Law ditional bargaining units within to give notice to employees about preferred (institutions),” he said. pal in the labor-employment group group of Miller Canfield Paddock and the same company.” whether a leave qualifies under at Detroit-based Kitch Drutchas Stone P.L.C. in Detroit, said first- FMLA. Honigman hosted a Webi- Wagner Valitutti & Sherbrook P.C., es- time labor contracts can be diffi- nar to inform clients on details of Employee Free Choice Act timated more than half the em- cult to forge and the new laws give Patriot Employers Act the FMLA changes, and Nemeth Under current law, organizers of ployer clients in that group’s prac- both management and labor little Possibly more palatable to some said her firm had issued notifica- a proposed collective bargaining tice are unionized already. room to resolve disputes. Southeast Michigan employers, tions to clients. unit must obtain enough employee Pendrick doubted employers “The parties are going to be Burns said, would be the Patriot Chad Halcom: (313) 446-6796, signatures on authorization cards would be completely surprised by forced to take a settlement neither Employers Act, which has lan- [email protected]

Inauguration: Detroit, state leaders get chance to rub shoulders ■ From Page 1

for with money left over from with folks at the Obama inaugura- medicine have a role in the upcom- ing Obama from around the world. fundraising for 2008 Democratic Na- OTHERS WHO’VE BEEN INVITED tion, meet with other mayors from ing federal stimulus legislation, as Nails said the venue’s capacity tional Convention activities. around the country and network well as the overall health care re- is 1,000; she expects more than 800 Foley & Lardner L.L.P. will enter- Ⅲ Jennifer Granholm, governor with members of Congress to dis- form debate,” Philip Van Hulle, di- to attend. tain clients in style, said George Ⅲ John Cherry, lieutenant governor cuss securing funding for the city of rector of publications at Wayne A black tie inaugural bash will Ash, Detroit-based chair of the Ⅲ JoAnn Watson, Detroit city Detroit, and (Obama’s) economic State University School of Medicine, be held Jan. 20, said Tonette firm’s regulated industries depart- councilwoman stimulus package,” Cherrin said. said on behalf of the physicians Bryant-Carter, senior development and its government and pub- Ⅲ Paul Hillegonds, DTE Energy Co. The mayor isn’t the only Michi- group in a statement to Crain’s. ment associate at Detroit’s Charles lic affairs practice. The firm has senior vice president ganian who plans to make the trip “The WSU Physicians Group H. Wright Museum of African Ameri- blocks of hotel rooms at D.C.’s his- Ⅲ Herbert Smitherman, Wayne a busman’s holiday. will make sure that this perspec- can History. toric Willard Hotel, once patronized State University assistant dean of “While the event will no doubt tive is well-represented at the up- “Our venue was booked for this by Charles Dickens, Mark Twain, community and urban health be exhilarating, for Michigan ad- coming presidential inauguration. event last year before we knew P.T. Barnum and Buffalo Bill. Ⅲ Doug Skrzyniarz, WSU senior vocates this is a working opportu- While the high costs have forced what would happen,” Bryant- “We’re hosting key clients at the director of external affairs nity to set the stage for our advoca- some in the group to seek lodging Carter said. Willard, which is located on Penn- Ⅲ Robert Riney,Henry Ford Health cy on behalf of Michigan hospitals with friends and family, they have But a Northville business, sylvania Avenue,” he said. “We System executive vice president and the patients they serve, to pos- still decided to make the journey Sweety Pies Bakery and Catering Inc., have a corner suite so we can and COO itively influence those debates,” for this historic event.” contacted the museum and offered watch the (inaugural) parade as it Ⅲ Kimberlydawn Wisdom, M.D, the MHA’s Spencer wrote in a There are home-front options to take the lead in hosting an off- goes down Pennsylvania Avenue Henry Ford Health System vice statement to Crain’s. for Detroiters who aren’t making site party. president, community health, on Tuesday, and we’ve also Detroit City Council President Pro the trip to Washington, D.C. Proceeds will go to the museum. education and wellness, and arranged to have TVs in the suite surgeon general, state of Michigan Tem JoAnn Watson isn’t planning Pontiac’s Crofoot Ballroom will be The event was originally sched- so those that don’t have tickets can to attend any parties, but said the site of a celebration hosted by uled for Detroit’s Flat 151, but or- Ⅲ Marilyn French Hubbard, Henry watch the swearing-in.” Ford Health System corporate vice she’ll use the trip to meet with law- the Oakland County Links, the lo- ganizers are searching for a new Three Foley & Lardner partners, president of community makers from around the country cal chapter of an international ser- venue that can accommodate the including Nicole Lamb-Hale, man- partnerships and chief diversity and advocate for Detroit. vice organization largely com- roughly 400 people who have pur- aging partner of the Detroit office, officer “My party will be bringing posed of African-American chased tickets to the party, Bryant- were key Obama supporters, Ash Ⅲ Candy Collins-Adams, Henry Ford home some bacon,” she said. women, said Alicia Nails, a mem- Carter said. said. Health System director of volunteer Watson, who said Detroit City ber of the group’s event publicity “As a historical museum we had Monday morning, the firm will services and community affairs Council President Monica Cony- committee. to do something,” she said. “This host a diversity celebration honor- ers has promised her a ticket to the “We are going to have food sta- is why we exist. We are a museum ing Martin Luther King Jr. and of Mayors’ winter meeting, said inauguration, said the trip is a gift tions that reflect Obama’s life ex- of African-American history and recognizing the Foley & Lardner press secretary Daniel Cherrin. from her daughter, an ardent Oba- perience, with Hawaiian-themed, this is a historical event happen- partners’ — two of whom are The conference ends the day be- ma supporter. Chicago-themed food and Asian- ing.” African-American; all three are fore the inauguration. The Wayne State University themed food,” she said. Crain’s reporters Jay Greene and women — contributions to Oba- The city will fund the mayor’s Physicians Group also hopes to The venue will be decorated, she Amy Lane contributed to this re- ma’s campaign, he said. trip, he said. use the inauguration to urge said, with trinkets and memorabilia port. Cockrel will arrive in Washing- “The mayor is primarily going to health care reform. from the campaign, as well as news- Nancy Kaffer: (313) 446-0412, ton Jan. 16 for the U.S. Conference Washington to network and meet “It is imperative that academic papers and magazine covers featur- [email protected]. 20090112-NEWS--0021-NAT-CCI-CD_-- 1/9/2009 4:20 PM Page 1

January 12, 2009 CRAIN’S DETROIT BUSINESS Page 21

Sports: Low costs help teams in tough economy www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- The National Football League and The Bucks, who play at Ponti- spend money, and someone like 0460 or [email protected] NBA recently laid off employees CASUALTY LIST ac’s 1,600-seat Ultimate Soccer Are- Karmanos has deeper pockets MANAGING EDITOR Andy Chapelle, (313) 446- and the Arena Football League last nas and are an unpaid mix of col- than the typical small-team owner. 0402 or [email protected] Examples of how the economic ASSISTANT MANAGING EDITOR/FOCUS Jennette month suspended its 2009 season be- lege and professional players, have Jeff “J.R.” Rose, whose primary Smith, (313) 446-1622 or [email protected] cause of the economy. Detroit’s auto downturn has affected pro sports a $150,000 annual budget, Duggan business is Novi-based bus and BUSINESS LIVES EDITOR Michelle Darwish, (313) industry woes have translated into locally: said. The team is a lower minor limo company J.R. Charter Service 446-1621 or [email protected] Ⅲ The 16-team Arena Football COPY DESK CHIEF Gary Piatek, (313) 446-0357 thousands of lost jobs and left the league affiliate of the Crew. L.L.C., reached his tolerance for or [email protected] League, which has a team in city’s major league teams freezing The Bucks draw nearly a full losses with his Detroit Demolition of DATA EDITOR Anne Marks, (313) 446-0418 or Grand Rapids, said on Dec. 12 it [email protected] or reducing ticket prices and com- house for their games, Duggan the semi-pro Independent Women’s was suspending its 2009 season WEB GENERAL MANAGER Alan Baker, (313) 446- ing up with new incentives for fans. because of “the current said, but the season ended just be- Football League. 0416 or [email protected] That doesn’t mean smaller fore the financial crisis erupted in Rose bought the team two years WEB EDITOR Christine Lasek, (313) 446-0473, unprecedented economic climate.” [email protected] teams can’t make it, however. The league, launched in 1987, August. He doesn’t yet know how ago but sold it last year because of WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) Key to survival for any team is to included NFL team owners, former the economy will affect the team. the $175,000 cost to put on a season 446-0403, [email protected] players and rock star Jon Bon Jovi EDITORIAL SUPPORT Robertta Reiff (313) 446- have a deep-pockets owner commit- “We’re going to find out real playing at Livonia’s Franklin High 0419, YahNica Crawford, (313) 446-0329 ted to the team, Caponigro said. among its investors. soon,” he said. He paid $25,000 for School. NEWSROOM (313) 446-0329, FAX (313) 446- “That’s really the impetus it Ⅲ The eight-team Continental the team in 1995 and moved it to De- Since being founded in 2002, the 1687 TIP LINE (313) 446-6766 would need, a real champion at the Indoor Football League’s two troit from Saginaw five years ago, Demolition has won four champi- REPORTERS helm of these sports franchises.” Michigan teams, Flint and and added that he’s willing to take onships and has won more than 70 Ryan Beene: Covers auto suppliers, steel, higher education. (313) 446-0315 or [email protected] The strategy for a committed mi- Kalamazoo, are on economic- continued losses on it because he games while losing just five. induced hiatus this year. The Daniel Duggan: Covers retail, real estate and nor-league owner to follow is sim- CIFL’s teams in Battle Creek, enjoys ownership. Their winning ways and the cu- hospitality. (313) 446-0414 or ple, Caponigro said: “They typical- “If we can almost break even riosity of a successful women’s [email protected] Saginaw and Port Huron either Jay Greene: Covers health care, insurance and the ly have a small but loyal fan base. failed or switched leagues since with the Bucks, I’m a happy guy,” football team translated into a core environment. (313) 446-0325 or In order to grow that, they need to the league was founded as the he said. fan base that floats between 500 [email protected]. create a team personality to at- Great Lakes Indoor Football Metro Detroit’s other pro soccer and 1,000 fans, and earned the Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland tract people that normally would- League in 2006. team is weathering the storm, too. team a local cable deal in 2007. and Macomb counties. (313) 446-6796 or n’t go. You also need to win.” Ⅲ The much-hyped All American John Hantz, owner of the Detroit Winning wasn’t enough to make [email protected]. One minor-league casualty of the Football League that was to have Ignition which the team profitable, so Rose sold the Tom Henderson: Covers banking, finance, a team at Ford Field and spent $30 technology and biotechnology. (313) 446-0337 or economy has been the effort to build plays at 3,500- team last year to Al Seder, whose [email protected]. a $9.5 million Frontier League base- million on startup costs called it seat Compuware Metro Detroit Sports Group also owns Nancy Kaffer: Covers small business, the city of ball stadium in Waterford Town- quits in March because the Sports Arena in a longtime local men’s semi-pro Detroit, Wayne County government. (313) 446- subprime mortgage crisis 0412 or [email protected]. ship. The plan is still on track, said evaporated the league founder’s Plymouth Town- football team, the Detroit Diesels. Bill Shea: Covers media, advertising and Rob Hilliard, managing partner of ship, had to “It takes a certain mindset to run marketing, entertainment, the business of sports, funding. and transportation. (313) 446-1626 or investors Base- scramble to find this sort of operation,” Seder said. [email protected]. ball Heroes of bor office to raise the remainder. a league when “You’ve got to know the little nu- Nathan Skid: Multimedia reporter. Also covers the Oakland County “It’s a struggle and you have to be Major Indoor Soc- ances to know how to make it work, food industry. (313) 446-1654, [email protected]. L.L.C., but back- cer League folded unless you have deep pockets.” Sherri Begin Welch: Covers nonprofits and more creative in giving local busi- services. (313) 446-1694 or [email protected] ers have been last year. The Ig- He plans to reduce the Demoli- ness their money’s worth. There’s a Hantz LANSING BUREAU forced to seek challenge on the advertising side nition landed in tion’s operations to $40,000, raised Amy Lane: Covers business issues at the Capitol, equity financing the four-team Xtreme Soccer League. mainly through fundraisers, tick- telecommunications and utilities. (517) 371- because of recession,” Hilliard said. 5355, FAX (517) 371-2492, [email protected]. or rather than “Times are tough and if the busi- Hantz, who paid $1.5 million for ets and local sponsorships. 115 W. Allegan, Suite 220, Lansing 48933. bank financing. the team three years ago, said a Typically absent in the minors ness is getting a good return on in- ADVERTISING “The debt side vestment, they’re going to keep in typical season costs between $1.5 are corporate dollars, which are of the capital million and $2.5 million and that drying up at the major league level ADVERTISING DIRECTOR Marla Downs, (313) Hilliard place their (investment) package. If 446-6032 or [email protected] markets is horri- they’re struggling, it could be a vic- he’s close to breaking even. because of the economic crisis, and SALES INQUIRIES: (313) 446-6052; FAX (313) ble. It doesn’t matter if the rate is “To me, within $200,000 or break- lucrative television deals. 393-0997 tim.” ADVERTISING SALES Jeff Anderson, Matthew J. zero percent if the banks aren’t Others are investing in local mi- even, I consider it a success.” Small teams rely not on Anheuser- Langan, Tamara Rokowski, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) lending,” he said. nor league sports, as well. The league’s 10-game season, five Busch and Visa, but on laundromats, (323) 370-2477 Owners also couldn’t get a land Dan Duggan, who co-owns the fewer than MISL, has helped keep car dealers and mom-and-pop CLASSIFIED SALES SUPERVISOR Terri Engstrom, deal done for the 4,000-seat stadi- expenses down, Hantz said. stores, all of whom are affected by 313-446-0351 Michigan Bucks soccer team in Pon- MARKETING MANAGER Irma Clark um until late summer, it forced the tiac, is meeting with investors Compuware’s other tenant is the the economy and may be less likely EVENTS MANAGER Nicole LaPointe stadium opening back a year, over the next 90 days as part of a $7 Plymouth to spend on local sponsorships. MARKETING ARTIST Sylvia Kolaski Hilliard said. Whalers of the Carter’s Panthers have local SALES SUPPORT Suzanne Janik, YahNica million plan to launch a top-tier Crawford The team, which eventually will Detroit affiliate of the Columbus Ontario Hockey sponsors that donate goods and CIRCULATION Candice Yopp, Manager. be called the Oakland County Sliders, Crew of Major League Soccer. League. The services, or cash anywhere from SALES, MARKETING INTERN Kim Winkler will play this year at Eastern Michi- That translates into a $2 million Whalers are $2,500 to $10,000, he said. PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, gan University’s 1,300-seat baseball investment to start the team, owned by Com- He also relies on volunteers. (313) 446-0301 stadium, and then move into the Di- puware Corp. “Everybody can get involved and which could be moved from Eu- CUSTOMER SERVICE amond at the Summit stadium, next to rope, and to build a $5 million founder Peter it’s a lot of work,” Carter said. “A lot the Summit Place Mall in 2010, Karmanos Jr., of people donate their time because MAIN NUMBER: Call (888) 909-9111 or write 5,000-seat outdoor stadium. [email protected] Hilliard said. “I’m willing to do that because who also owns they want to be involved. That’s one SUBSCRIPTIONS $59 one year, $98 two years. Investors already have sunk $4 the NHL’s Caroli- of the reasons minor leagues sur- Out of state, $79 one year, $138 for two years. it’s not about making money,” said Karmanos Outside U.S.A., add $48 per year to out-of-state million into the project, and hired na Hurricanes. vive.” rate for surface mail. Call (313) 446-0450 or Duggan, who is president of sales (888) 909-9111. Leonard Capital Markets of Troy and for Health-Mor Inc. in suburban Most minor league teams last as Bill Shea: (313) 446-1626, SINGLE COPIES: (888) 909-9111 or contact Dickinson Wright P.L.L.C.’s Ann Ar- Cleveland. long as their owners are willing to [email protected] Karen Boykin, [email protected]. REPRINTS: Call (800) 494-9051, Ext. 144 , or write [email protected]. TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected].

CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain Barometer: Small-biz survey finds dismal outlook PRESIDENT Rance Crain SECRETARY Merrilee Crain ■ From Page 3 TREASURER Mary Kay Crain Executive Vice President/Operations William A. Morrow need us at all for child care during ber, we would have filled all those Hiring expectations, the survey emerging business division of Troy- Group Vice President/Technology, Manufacturing, Circulation the day. And if, like a lot of con- spots up. That didn’t happen this found, also are at historical lows, based Cambridge Employee Benefits, a Robert C. Adams sumers, they feel like they can’t year.” with just one in five small-busi- subdivision of Cambridge Consulting Vice President/Production & Manufacturing spend money because they don’t The percentage of business own- ness owners reporting plans to in- Group. “Everybody has felt the Dave Kamis Corporate Director/Circulation know where their next dollar is ers who gave a negative rating to crease staff in the year ahead. downturn now. Before it was manu- Patrick Sheposh coming from, they say they’re go- access to credit soared to 48 per- That’s a 12 percentage point facturing, now it’s everyone.” G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) ing to skip preschool.” cent, an 18 point increase over the drop since the last barometer re- Miserencino said that means EDITORIAL & BUSINESS OFFICES: Grubb wouldn’t discuss enroll- July report, and more than three port was released in July, and the employers have fewer workers to 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 ment figures, but said the center times the historical average of 15 lowest level in the barometer’s 15- insure — and smaller deals for Cable address: TWX 248-221-5122 AUTNEW DET has dropped below its licensed ca- percent. Twenty-six percent of re- year history. And just one in three Cambridge. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the pacity of 120. spondents rated access to credit small-business owners expect em- “People have laid off employees third week of January, and a double issue the “Through the summer we were positively. ployee wages to increase in the or downsized, and we now insure fourth week of August by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. pretty much even with previous The barometer weights survey next year, compared to a historical fewer employees in total,” he said. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address years,” he said. “We have children responses based on business size average of 48 percent. “The clients are there, but they’re changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- who have been here for the kinder- and industry. SBAM, a Lansing- “I insure all types of clients from smaller. In total we did all right, 9732. GST # 136760444. Printed in U.S.A. garten readiness program who left based business advocacy group, lawyers to car dealers to manufac- but it’s a tough environment.” Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. to go to kindergarten, and usually has roughly 5,000 members turing companies,” said Gerard Nancy Kaffer: (313) 446-0412, Reproduction or use of editorial content in any by end of October or mid-Novem- statewide. Miserencino, president of the [email protected]. manner without permission is strictly prohibited. 20090112-NEWS--0022-NAT-CCI-CD_-- 1/9/2009 6:03 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 12, 2009 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 3-9

executive director of the general manager. Veteran reporter retires Patterson, Michigan Thanksgiving Parade Ann Arbor-based Uni- Foundation, plans to leave versity Bancorp Inc. (Nasdaq: Troy chamber Reporter Robert Ankeny the organizations Feb. 4 to UNIB) said Monday it will has retired from Crain’s Cherry make work as general manager of file with the Securities and Detroit Business after a the Mountain Winery in Exchange Commission today dozen years here. Saratoga, Calif. to voluntarily delist from Bob moves to run Rob Parker, sports fights blues the Nasdaq Capital Market. joined columnist for The Detroit ArvinMeritor Inc. plans Crain’s News, resigned Jan. 2, the to cut the base salaries of its in the for governor newspaper said. He had executives by 10 percent be- wake of been criticized for a ques- ginning Friday. the 1995 t. Gov. John Cherry and with pep rally tion posed to then- Detroit Li- Plymouth-based Metal- newspa- Oakland County Exec- ons Coach Rod Marinelli: hat does it take to first dividend Wednesday L utive L. Brooks Patter- dyne Corp. said Thursday it per “On a light note, do you get us all out of a when Derby shocked world is trimming benefits for its strike. son are taking steps toward wish your daughter would W possible depres- champion Manchester United He had running for governor. salaried employees, includ- have married a better de- sion? A federal bailout, with 1-0 on a 30th-minute goal in ing a forced two-week vaca- worked Cherry announced fensive coordinator?” labor concessions? front of 30,000 fans at Der- for near- Thursday he has formed a tion “purchase” during the How about a marching by’s Pride Park Stadium. Ankeny Ron Marshall to CEO, first quarter. The company ly 26 years committee to seek the office Borders Group Inc. band with a fight song? The upset came in the , Ann Ar- also reduced employee trav- as an editor and reporter next year. Granholm can’t bor. Marshall founded Min- You’ll find the latter at a semifinals of the single- el, ended merit-based raises for The Detroit News. run because of term limits. nesota-based Wildridge Capi- “Business Pep Rally” sched- elimination Carling Cup for 2009 and suspended Bob spent most of his Patterson planned to an- tal Management three years uled as part of the Troy Cham- tournament. nounce over the weekend 401(k) matching and retire- career covering courts ago. He replaces George ber of Commerce’s annual Derby County and Man- that he also would explore a ment contributions. and knows everyone — al- Jones, who left to pursue meeting Tuesday at Walsh chester meet again Jan. 20 run for the office. Dow Chemical Co. said most literally — in the le- other interests. College. But tell the French at Manchester’s 76,000-seat Other possible Republican Tuesday it will pursue legal gal community here as Mark Bierley is now CFO Horn section to stay home Old Trafford stadium for candidates include Secre- action against Kuwaiti- well as in the city of De- and executive vice presi- — event music is recorded. the second leg of the semifi- tary of State Terri Lynn Land, troit and also Dearborn, dent; he replaces Ed Wilhelm. owned Petrochemical Indus- More than 150 people had nal matchup. Appleby owns his longtime home. That Attorney General Mike Cox, Anne Kubek has been named tries Co., which pulled out of registered for the rally Fri- Rochester-based General knowledge he shared with Domino’s CEO David executive vice president, a joint-venture last month, day, bringing attendance al- Sports & Entertainment L.L.C. our staff, as well as ques- Brandon, U.S. Reps. Pete Hoek- merchandising and market- the AP reported. most to capacity. The cham- tionable limericks and stra, Mike Rogers and Candice ing, and replaces Rob Gruen. Detroit Mayor Ken Cock- ber’s board and staff will atrocious puns. Miller and Oakland County BITS AND PIECES The Wayne County Com- rel Jr. has hired national polit- sport jerseys and even ex- Bob will continue to do Sheriff Mike Bouchard. mission elected District 15 ical consultants AKP&D Mes- pect to roll out thunder Forgotten Harvest will occasional projects for Candidates Cherry might Commissioner Edward Boike sage and Media, The Strategy sticks and pompoms to lead “rescue” leftovers from the Crain’s and can continue face for the Democratic Jr., D-Taylor, as chairman. Group, Anzalone-Liszt Research a cheer or two. auto show for the first time to be reached at banke- nomination include Ma- He replaces Jewel Ware, D- and Telephone Strategies Group The Chamber also ex- this year, as part of a larger [email protected]. comb County Sheriff Mark Detroit. to consult with his political pects to present its annual agreement with Aramark- Bob’s retirement has Hackel, Wayne County Ex- TechTeam Global Inc. has campaign, The Detroit News report, thank outgoing Cobo Center to collect sur- led to the following ecutive Robert Ficano, Flint named President and CEO reported. All were involved Chairman John Bailey, presi- plus food from Cobo. changes: Mayor Don Williamson and Gary Cotshott chairman. He in the Obama campaign. dent of public relations firm Haven, the Pontiac non- Nancy Kaffer takes former Michigan State foot- replaces Alok Mohan, who re- The Detroit Lions had no John Bailey & Associates Inc., profit focusing on domestic over city of Detroit cover- ball coach and current signed to devote more time comment on reports that and welcome incoming violence, will give its age; she will continue to trustee George Perles. to other interests. Mohan re- fired team president Matt Chairman Dave Grenville, se- “Heart of Haven Award” on cover small business. mains a board member. Millen hasn’t been paid the fi- nior vice president of Bank Jan. 22 to Gerry Barrons, for- Chad Halcom now cov- S&P: Detroit bonds junk nal $12 million he believes of America in Troy. mer executive director of ers the law beat and will the Women’s Economic continue to cover the de- Standard & Poor’s has NAIAS he’s owed for the final two Club (now Inforum) and co- fense industry, non-auto- downgraded its rating of and a half years of his con- Appleby scores in soccer Chrysler L.L.C. said it producer of “Passing the motive manufacturing Detroit’s bonds to junk sta- tract extension. would cut its budget for the Metro Detroit sports Torch,” a film about the and Oakland and Macomb tus, giving holders the right Clark Hill P.L.C. acquired North American International mogul Andy Appleby led a state’s women’s movement. counties. to claim $400 million, The Phoenix-based law firm Nor- Auto Show, eliminating its group of investors a year The Detroit Media Partner- Ryan Beene now cov- Detroit News reported. ling, Kolsrud, Sifferman & Davis Firehouse media hospitali- ago who spent $100 million ship and Vigilante Security, ers higher education and The action comes as the on Jan. 1. ty suite and eliminating to buy professional soccer’s Lathrup Village, will retraining and continues to city struggles to close a $300 Allen Park officials said elaborate car unveilings. lowly Derby County Football ceive corporate champion cover auto suppliers and million budget deficit. they were in negotiations Also, journalists and con- Club of England’s Premier for change awards. steel. Detroit Budget Director with an unnamed Holly- sumers at the auto show League, knowing the team’s Tickets are $50. For more Daniel Duggan adds re- Joe Harris said bond-holders wood studio executive inter- will be able to participate in historic last-place finish information, call (248) 334- tail to his real estate and have to be reasonable. No ested in building a $100 mil- a new ride-and-drive event meant relegation to a lower 1284, ext. 341, or send an e- hospitality coverage. one expects the city to come lion studio that would bring featuring green vehicles league. mail to hthomas@haven- up with $400 million quickly. 3,500 jobs to the city, the De- sponsored by the Michigan That investment paid its oakland.org. troit Free Press reported. Economic Development Corp. DFCU Financial Federal Flanagan recommends No cars or trucks made Credit Union deposited $17 by Nissan Motor Co. will be managers for DPS million into member ac- on display this week, the counts as a dividend based State Superintendent of company said Monday. Public Instruction Mike on 2007 performance. Local dealers were ex- See how auto show, small biz deal with downturn Flanagan on Wednesday rec- pected to show some Nissan A new charter school, a ommended emergency fi- All eyes in the automotive world experienced. and Infiniti vehicles after partnership between the Col- nancial manager candi- are on the Motor City this week as And for younger managers, a Nissan said it would not lege for Creative Studies and dates for Detroit Public the North American International recession of this depth may be a have exhibits at the Detroit Henry Ford Learning Institute, Auto Show opens. This week, it’s Schools: Jack Martin, chair- totally new experience, since only and Chicago shows. will occupy part of the Arg- for the reporters. Next week, it’s two recessions have run longer man of Bloomfield Hills- onaut Building in Detroit’s for everyone else. than this one since the Great based CPA and consulting New Center, the schools said So what’s different about our old Depression. firm Martin, Arrington, Desai OTHER NEWS Friday. CCS unveiled last friend Cobo Center? How are the & Meyers P.C.; and Robert In this week’s Small Talk, guest Federal prosecutors summer a $145 million plan auto companies and their displays blogger Bob Smith from SCORE Bobb, CEO of Washington, dropped charges Friday to redevelop the building. changing to meet rough economic says forward-thinking owners and D.C.-based LAPA Group L.L.C. against former Collins & Aik- times? managers are putting together and former board of educa- man Corp. CEO David Stock- We sat down with one of the co- “Economic Endurance Plans” to tion president there. OBITUARIES man, who was accused of chairs of the show last week, then see them through their current Gov. Jennifer Granholm ap- plight. Patricia McDonald, 61, took a video walking tour. Watch WEB WORLD points the manager from overseeing a sweeping former president of the Na- our streaming video at Alan Baker Find out what you need to know to the recommendations; the fraud at the supplier before www.crainsdetroit.com/ jump-start your business future at tional Multiple Sclerosis Soci- Web General Manager appointment requires state it collapsed into bankrupt- multimedia. www.crainsdetroit.com/ ety, Michigan Chapter, died of Senate consent. cy, the AP reported. The newest numbers from the government smalltalk. General Dynamics Corp. lung cancer Jan. 4. show the economy shed a half-million jobs in And while you’re there, sign up for our thrice- ON THE MOVE said it has finished its acqui- Thomas Roach, 79, an the last month. For many small-business monthly Small Talk e-mails to keep you sition of Troy-based AxleTech Ann Arbor attorney and owners or managers, this may be the most informed about small-business news and Joan LeMahieu, presi- International Inc. AxleTech longtime University of Michi- severe economic time they’ve ever issues. It’s free and easy. dent of The Parade Co. and CEO Mary Petrovich becomes gan regent, died Dec. 23. DBpageAD.qxd 1/9/2009 2:38 PM Page 1 DBpageAD.qxd 12/29/2008 1:09 PM Page 1

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