DETROIT BUSINESS MAIN 09-01-08 A 1 CDB 8/29/2008 6:33 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 35 SEPTEMBER 1 – 7, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Golf resort Defense industry meeting Merit raises beat in Troy Sept. 15-17 builders The National Defense In- dustries Association, Michi- gan chapter, is holding a pony up conference Sept. 15-17 for defense contractors, sub- bosses’ predictions contractor firms, local gov- ernment officials and other own funds businesses interested in the defense industry. Survey finds optimism for ’09 LOOKING AHEAD The association hopes BY DANIEL DUGGAN up to 300 people will attend CRAIN’S DETROIT BUSINESS A study by the American Society of BY SHERRI BEGIN around the state, 266 respondents Employers shows that Michigan the fall business event, Developers are most comfort- CRAIN’S DETROIT BUSINESS projected their merit increase companies are projecting the which will include speak- able when they’re working on a budgets would following average merit increases ers, panel discussions and sure-shot development, using oth- Michigan employers were grow 3.19 per- for the coming year: Detroit networking at the er people’s money. more generous with merit pay in- cent for nonex- Marriott Troy. A four-person investment group creases in 2008 than they predict- empt employ- About 225 people attend- ed they would be last January, 3.3 percent from Shelby Township, building a ees, or those for nonexempt workers, or those ed last year’s inaugural $52 million residential community according to a new study from workers eligi- Constance Blair workers eligible for overtime. event, said , around two West Michigan golf the American Society of Employers. ble for over- president of Warren-based courses, is going in the opposite di- “Employers are doing every- time. Technol- defense contractor rection — building residential in a thing they can to stay in busi- They pro- ogy Ventures Inc. and a 3.4 percent down market and spending its own ness,” said ASE President Mary jected salaried, for salaried, or exempt employees. member of NDIA-Michi- Schroeder. money to do it. Schroeder or exempt em- gan’s board of directors. Ron Marino insists the project is “They need to continue to keep ployee bud- “A lot of defense dollars no gamble. employees as well, but they just gets, would increase 3.37 percent 3.7 percent come to and through “From day one, we knew this don’t have the budgets that this year, and those for officers for directors and executives. Michigan, and we would would allow them to give huge and executives would go up 3.51 would be a five-to-10-year project, About 9 percent of the Michigan like to see more of those but it was also bought at the right increases.” percent. dollars go to Michigan In a January survey of compa- respondents said they don’t plan companies to create Michi- to give any merit increases at all. See Builders, Page 30 nies in Southeast Michigan and See Raises, Page 28 gan jobs,” said Blair, who is conference chairwoman. Local defense companies taking part include Ster- ling Heights-based General Dynamics Land Systems and AM General L.L.C., makers of the military Humvee. New medical centers For more information on the “Building Your Toolkit for Government Business” event, see www.ndia- mich.org. may struggle for staff — Chad Halcom CitiMortgage is moving BY JAY GREENE to Pittsfield Township CRAIN’S DETROIT BUSINESS Help wanted Hospital industry folks like to say, “If CitiMortgage, a division Area hospital systems will open you build it they will come.” “They” usual- several new medical facilities in Citi- of New York-based ly are patients. But what if “they” are em- the coming year. The numbers Group of employees they will need: (NYSE: C) will move ployees? 470 employees out of its Given the dire shortage of health care Henry Ford Hospital Southfield office and into professionals in Michigan, health care ex- its Pittsfield Township of- perts are raising questions about where 1,600 fice. the required employees will be found to The move comes after a staff the two new hospitals, four new med- St. John review of employees in the ical centers and several other physician- two offices in an attempt to owned health care facilities slated to open Mark 1,400 be more efficient, said in Oakland County in the next two years. Rodgers , vice president of Experts say the search to hire the esti- William Beaumont Citi Con- public affairs for mated 3,000-4,000 employees to staff the fa- sumer Banking . cilities is expected to be challenging at best 650 There are currently 700 and nearly impossible at worst. employees in the Pittsfield Over the last several years, physician, McLaren Health Township office, Rodgers REBECCA COOK Joshua Barsaleau and Jennifer Bainbridge, both registered nurses, are new hires at nursing and professional allied health as- See This Just In, Page 2 St. John Providence Park Hospital. Barsaleau came from St. Joseph Mercy 70 Oakland in Pontiac, and Bainbridge from St. Joseph Mercy Hospital in Ann Arbor. See Hospitals, Page 28 Wineries savor ‘Green teams’ growth in tourism, sprout, NEWSPAPER Page 18 Page 11 DETROIT BUSINESS MAIN 09-01-08 A 2 CDB 8/29/2008 6:54 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS September 1, 2008 on the deal. Doshi moved from Livingston United Way starts trial building has been on the in the county and overseeing its THIS JUST IN leased space at 1607 E. Big Beaver market for more than a year, Ann Arbor and Ypsilanti commu- Road. campaign Thursday high energy prices made the nity centers. ■ From Page 1 — Daniel Duggan The Livingston County United Way building’s location more appeal- Williams, who has a 20-year ca- plans to kick off its annual cam- ing and helped prompt a recent reer with the Salvation Army, pre- said, though 60 jobs have been Cendrowski Corporate Advisors paign Thursday. sale, said Robert Pliska, managing viously was Genesee County com- eliminated as part of the efficien- The campaign, which runs director with Birmingham-based mander at the nonprofit’s Flint cy review. to open Chicago office through the end of October, will Sperry Van Ness/Property Invest- affiliate. He replaces Ralph Labbee The company has a lease for ment Advisors, who represented who led the center for the past two Bloomfield Hills-based fund four areas: basic needs, 113,000 square feet at the Galleria the seller. years before leaving to head the Cendrowski Corporate Advisors L.L.C., strengthening families, healthy Officentre building in Southfield The 500,000-square-foot build- Salvation Army’s Wichita, Kan., which advises companies on aging and early childhood pro- through 2014, according to the ing was sold to a group of in- affiliate. fraud deterrence and offers litiga- grams. Bethesda, Md.-based CoStar Group. vestors for $1.7 million, according — Sherri Begin tion support, opens a downtown The Livingston County United Rodgers said no decision has Chicago office this week. Presi- Way has not set a specific finan- to CoStar Group. The building at been made on what to do with the dent Harry Cendrowski said he de- cial goal for the last few years, 1200 E. McNichols Ave. was sold space, which will be vacant by the State ad campaign wins award cided to open the Chicago office af- said Executive Director Nancy by an equity group, an affiliate of end of the year. Michigan’s tourism campaign ter having trouble recruiting Rosso. Last year, the campaign Irvine, Calif.-based Sperry Van CitiMortgage will move into the has won more top awards from senior-level experts in forensic ac- brought in just under $1.4 mil- Ness. It was sold to a group of local Avis Farms South office park the Travel Industry Association of counting to move to the Detroit lion, she said. investors organized under the building constructed for the ABN America. area. The Chicago office will ini- — Sherri Begin name Highland Park Real Estate Amro Mortgage Group — which Citi The Pure Michigan campaign, tially be staffed with three or four L.L.C. acquired in 2007. created by the Birmingham office fraud experts. — Daniel Duggan — Daniel Duggan BorgWarner promotes exec of McCann Erickson, was honored — Tom Henderson Auburn Hills-based BorgWarner for the best state tourism radio Doshi buys Troy building Inc. (NYSE: BWA) has promoted Salvation Army makes advertising in the country. Pure Firm moves Birmingham office Hans-Peter Schmalzl to be the com- Michigan showcases the state’s Troy-based Doshi Associates has Washtenaw appointment Clark Hill P.L.C. has moved its pany’s chief technology officer. golf courses, beaches and other purchased a building and moved The Salvation Army of Washtenaw Birmingham office to 151 S. Old Schmalzl, 48, replaces Mark Per- attributes. The campaign won into expanded office space. County has named John Williams as Woodward, Suite 200, at the lick, recently retired after 10 awards last year from the Wash- The architectural firm opted to southeast corner of Maple Road, years at the powertrain compo- Washtenaw County coordinator, ington-based association. — Amy Lane occupy 24,000 square feet at 5755 where the firm occupies 37,699 nent and system supplier. heading the nonprofit’s programs Schmalzl joined BorgWarner Tur- New King Court in Troy and buy square feet. It’s an expansion of bo Systems in May 2000 and was the building. The other 35,000 nearly 80 percent over the previ- CORRECTIONS named vice president of technolo- square feet there is under a long- ous office at 255 S.