DETROIT BUSINESS MAIN 03-19-07 A 1 CDB 3/16/2007 7:07 PM Page 1

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http://www.crainsdetroit.com Vol. 23, No. 12 MARCH 19 – 25, 2007 $2 a copy; $59 a year

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Local partners buy Downtown rentals Galleria Officentre The Galleria Officentre in BLOOMBERG Southfield is back in the Carl Icahn enjoys going against the hands of local developers. tide. Southfield-based Nemer Property Group, the developer gain more attention of the 1 million-square-foot office complex built in 1983, and its partner, Uniprop, Icahn on Birmingham, bought the majority interest purchased Condos still in 2000 by Charlesbank Realty Fund of Boston for about $125 million. Nemer re- Lear: selling, but tained a minority interest. Larry Nemer, president of Nemer Property Group, de- investors clined to reveal the sale Company price for the latest deal. Occupancy is about 70 start to shift percent, according to CoStar positioned Group. Major tenants in- their gaze clude CitiMortgage, Xerox, well in Accenture and Centex Homes. BY JENNETTE SMITH — Jennette Smith industry AND ROBERT ANKENY CRAIN’S BUSINESS Fund to invest $400M BY BRENT SNAVELY When Jon Grabowski is trying in shopping centers CRAIN’S DETROIT BUSINESS to sell a condo- minium at the Book Cadillac de- A fund created by devel- Legendary value investor Carl opers Grand Sakwa Proper- velopment or the Watermark, the Icahn said Friday that he became east riverfront project led by Dave ties and Lormax Stern Devel- interested in Lear Corp. for the opment Co. plans to invest Bing, he has much better luck same reason he invests in most when the potential buyer already $400 million in shopping companies: Others lost confidence. lives in a downtown apartment. centers in , Ken- “If you look at my history, I’ve Often, a buyer will test the wa- tucky and Texas. done this all of my life. You buy ters in Detroit by renting an apart- According to a news re- companies that are not in favor,” ment for a year before committing lease, the Equity Alliance Icahn said in an interview with to a purchase through Grabowski, Fund, established last year Crain’s Detroit Business on Friday. president of Esquire Properties, or to buy and build shopping “You go against the emotion. You another broker. centers, is ahead of sched- go against the tide. You don’t go In parts of downtown, there’s a ule in its plans to acquire with the crowd, you go against it.” race among developers to get mid- $1 billion in real estate. On Feb. 9, Southfield-based Lear priced and luxury condos up to at- Daniel Stern, Equity Al- JOHN F. MARTIN (NYSE: LEA) announced that its tract prospects before demand liance partner, said other Jon Grabowski, president of Esquire Properties, and Gideon Pfeffer, buyer of a board of directors had voted to ac- wanes. But investors also are pay- acquisitions are being cept a $5.3 billion buyout agree- Book Cadillac condominium, inside the building under renovation. Pfeffer, 27, is a mortgage broker who rented downtown apartments for two years before ing more attention to the rental worked on in Tennessee, ment from New York-based Ameri- buying at Harbortown, and then at the Book Cadillac. See Rentals, Page 32 Kentucky, Florida, the Car- can Real Estate Partners L.P., a olinas and Texas. company affiliated with Icahn. The Southeast Michigan Icahn built his reputation in the projects so far include a 1980s as a corporate raider by tar- 320,000-square-foot develop- geting companies such as Texaco ment at Michigan Avenue Inc. and Trans World Airlines Inc. He and Beck Road, Canton has recently battled with New 6% service tax floated as SBT replacement Township; a 65,000-square- York-based TimeWarner Inc. and foot shopping center at Five Chicago-based Motorola Inc. BY AMY LANE the measure would raise an esti- group has been wary of the gross- Mile and Sheldon, North- Icahn said the idea for the buy- CAPITOL CORRESPONDENT mated $4.5 billion annually before receipts tax proposed by some be- ville Township; a 300,000- out proposal emerged in late Janu- tax credits and deductions and cause it could institute multiple square-foot Super Wal- ary during a dinner meeting in LANSING — Add another idea would eradicate the need for any layers of taxation on the way Mart-anchored center, New York with Lear Chairman to accelerating discussions on a other measure to replace Michi- dealers do business. Hartland Township; and a and CEO Bob Rossiter. At the time, replacement for Michigan’s sin- gan’s single-business tax. The For example, dealer-to-dealer 300,000-square-foot, depart- Icahn was already a major Lear in- gle-business tax: a 6 percent tax SBT currently raises about $1.9 vehicle trades, in which no mon- ment store-anchored pro- vestor. on all services, including busi- billion annually. ey is exchanged, might be count- ject at 23 Miles and Hayes, During the dinner, Rossiter told ness-to-business. One group intrigued by the 6 able as gross receipts and thus Macomb Township. Icahn how difficult it is for an au- No specific group claims own- percent services tax is the Michi- subject to tax, he said. “Every — Jennette Smith tomotive supplier to aggressively ership of the idea, but as ex- gan Automobile Dealers Association. time a vehicle moves, there would invest in its future without worry- See This Just In, Page 2 plained on a plain piece of paper Terry Burns, the association’s ex- See Icahn, Page 30 circulating around the Capitol, ecutive vice president, said the See Tax, Page 31

A talk with Comerica’s new The men behind the Michigan chief, Tigers’ talent, NEWSPAPER Page 18 Page 11 DETROIT BUSINESS MAIN 03-19-07 A 2 CDB 3/16/2007 6:09 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 19, 2007

while we can is an important first tion to investors who bought La- Medical Center, the health system George Ellenwood, Detroit Water and THIS JUST IN step,” Cullen said. son stock after the company an- announced Friday. Sewerage Department public-affairs Built in 1905, the office build- nounced record results for the The gift was made to honor the manager. ■ From Page 1 ing contained the lobby of the third quarter of 1999. St. John Hospital Guild and the Because of the late approval, Adams Theatre, added behind it Two other former Lason execu- Fontbonne Auxiliary, the hospi- the new rates will not take effect Dow Automotive president in 1917 on Elizabeth Street and tives, Chairman Gary Monroe and tal’s two volunteer service and until July 14, or be reflected in fundraising groups. The Bolls are connected to it by a tunnel. The CFO William Rauwerdink, also bills until after Aug. 1 , he said. Hamilton to leave Adams offered the full range of members of both. have pleaded guilty to similar Voting for the rate increases entertainment from vaudeville, Including the $5 million gift, Dow Automotive announced that criminal charges and are to be were Kwame Kenyatta, Monica silents, talkies, Cinerama and sentenced in April. the St. John capital campaign President George Hamilton is leav- Conyers, Sheila Cockrel, Alberta even adult movies before it was — Robert Ankeny committee has raised about $24.2 ing the company to lead a new Tinsley Talabi and Martha Reeves. coatings business for Dow Chemi- closed in 1988. Its marquee, in million of its $30 million goal. Council President Kenneth Cock- cal Co. Peter Sykes will replace danger of collapsing, was re- The campaign will support the WSU to break ground rel, Brenda Jones and JoAnn Watson him. moved in 1999. $163 million, 288,000-square-foot voted against the new rates. Bar- Hamilton, 51, has led Auburn Francis Grunow, Preservation at former Vernors site expansion of the St. John Hospi- Hills-based Dow since 2003. Wayne executive director, said tal and Medical Center in Detroit. bara-Rose Collins was absent. plans to Sykes, 46, most recently the organization “grudgingly sup- — Andrew Dietderich — Robert Ankeny worked as vice president of ports the proposal … provided re- break ground Wednesday on South University Village, a $36 Cranbrook seeks renovation bids Dow’s plastics business in the development happens quickly.” Water-rate increase OK’d Asia-Pacific region. He has been The commission is scheduled million mixed-use development Cranbrook Educational Communi- with Dow since 1981. to consider the request at a on the former site of the Vernors The Detroit City Council voted 5-3 ty said it is soliciting bids for a $6 Sykes will work from Tokyo, March 29 meeting at 5:30 p.m. in ginger ale plant. Friday to approve water rate in- million renovation and expan- but the company said its head- the City Council chambers, Cole- Prime Development Co. of Grand creases both for retail customers sion of the Cranbrook Kingswood quarters will stay in Auburn Hills. man A. Young Municipal Build- Rapids is serving as developer on in the city and for its wholesale Boys’ Middle School scheduled to the project which will include a — Automotive News ing, Detroit. billings to suburbs. begin in June. parking structure and Fifth Third — Robert Ankeny The split vote approval came af- DSA Architects L.L.C. in Berkley Bank as an anchor tenant, said ter two previous rejections of pro- is serving as the architect. Ilitch asks for OK to demolish Francene Wunder, director of cor- posed hikes, with the city’s in- The project, which includes a Former Lason COO gets porate and public affairs at WSU. most of Fine Arts Building crease 2 percentage points less 20,000-square-foot addition to The project is scheduled to be year and a day in prison than originally proposed. Ilitch Holdings Inc. has requested completed by the summer of 2008, house a new gymnasium, two The average rate increases for permission from the Detroit His- John Messinger, former presi- she said. practice courts and a 94-foot game combined water and sewer service toric District Commission to demol- dent and COO of Lason Inc., a — Sherri Begin court, should be completed by the ish most of the Fine Arts Build- Troy-based document- and data- are 3.9 percent for the suburbs and summer of 2008, Cranbrook said. ing at 44 W. Adams while management company, was sen- 7.4 percent for city customers, said — Sherri Begin preserving the building facade. tenced Friday to 12 months and Boll Foundation to donate Karen Cullen, Ilitch vice presi- one day in federal prison on his $5M to St. John Hospital dent for communications, said conviction for filing false reports CORRECTIONS architects from SmithGroup and and inflating company earnings. The John A. and Marlene L. Boll Ⅲ A March 12 People item said that Thomas Talboys had been named Preservation Wayne determined U.S. District Judge Arthur Foundation pledged $5 million to vice president of business development for Warren-based Noble Inter- that the entire building was not Tarnow also ordered Messinger, the $30 million campaign being national Ltd. Talboys left the company after Crain’s received the an- reusable. “Preserving the facade 49, to pay $20 million in restitu- conducted by St. John Hospital and nouncement, but before we printed the item.

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March 19, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Detroit mall may get J.C. Penney INDEX

General Growth plans to partner Store would anchor Shoppes at Gateway Park with the Washington-based National Retail Federation Foundation on a train- BY SHEENA HARRISON The letter is from Chicago-based firm J.C. Penney as the tenant. ing center to certify potential employ- CRAIN’S DETROIT BUSINESS General Growth Properties Inc., the na- “This validates the retail potential ees in retail skills such as customer tion’s second-largest retail real estate of the site and gives the project credi- service and management. It is hoped J.C. Penney Co. Inc. has signed a let- investment trust, which has agreed to bility and momentum,” Richardson the center would attract retailers by ter of intent to anchor The Shoppes at develop, lease and manage Gateway said in an e-mail to Crain’s last week. helping provide skilled workers. Gateway Park in Detroit — a sign that Park. Plans also include up to five na- “We will now work to attract other James Canning, Detroit’s deputy the developer could be gaining mo- tional “junior box” retailers, up to quality retailers to join the depart- press secretary, said the city is opti- mentum in its plans to develop the five restaurants and as many as 40 na- ment store anchor at the site.” mistic but is also being cautious be- 330,000-square-foot retail center. tional and local small retail shops. Brenda Romero, in the public-rela- cause a lease has not yet been signed. According to a letter forwarded to Schrott said Penney’s plans to tions department for J.C. Penney, “The letter of intent is definitely a Crain’s by Bernard Schrott, a Gate- open a Detroit store bode well for the said Friday, that it was premature to great first step,” Canning said. way Park investor, Plano, Texas- future of Gateway Park, which is confirm plans for a new store. “However a letter of intent does not Faster Cadence: based J.C. Penney intends to open a Purchase of C&A plants planned to open in March 2009. J.C. Penney’s letter of intent follows serve as the final agreement. There’s gives supplier more 100,000-square foot store at the cen- Lyneir Richardson, General a letter-writing campaign from local still some details to be worked out, building blocks. Page 10. ter, which is planned for the south- Growth’s vice president of urban business and community leaders or- but we’re definitely excited that this Rare opportunity: east corner of Eight Mile Road and land development, confirmed an an- ganized last year by General Growth process is moving forward.” Entrepreneurs look to Woodward Avenue near the Michigan chor has signed a letter of intent for to help persuade national retailers to Sheena Harrison: (313) 446-0325, inspire by honoring State Fairgrounds. Gateway Park, but would not con- look at the Gateway Park site. [email protected] everyday heroes. Page 28.

These organizations appear in this week’s Crain’s Detroit Business:

1001 Woodward L.L.C...... 32 Ajax Paving Industries Inc...... 29 American Axle & Manufacturing . . . 14 Arcelor Mittal ...... 4 AVL Powertrain Engineering Inc. . . . 29 2-year colleges target nursing Belfor Group USA ...... 28 Boys & Girls Clubs of SE Mich. . . . . 14 Cadence Innovation ...... 10 CB Richard Ellis ...... 24 City Year Detroit ...... 15 A SHORTAGE Want to offer degree; 4-year schools oppose Cobasys L.L.C...... 29 Collins & Aikman Corp...... 10 BY AMY LANE it from your BSN pool. The capacity demands for Comerica Inc...... 18 ...... 13 BY THE NUMBERS CAPITOL CORRESPONDENT BSN nurses cannot be met simply by the four-year Compuware Sports Arena ...... 16 (universities) alone,” he said. “We see it, frankly, as Cox, Hodgman & Giarmarco ...... 28 LANSING — Michigan’s community colleges CSM Worldwide ...... 10 part of a broader policy to help Dan’s Excavating Inc...... 29 are seeking legislation that would allow them to with the nursing issue in the D-DOT ...... 33 18,000 Detroit Belle Isle Grand Prix ...... 11 offer a bachelor’s degree in nursing, an idea al- state.” Detroit Ignition ...... 16 Estimated shortage of ready drawing concern from four-year schools. Gov. Jennifer Granholm, in Detroit Investment Fund ...... 32 The Michigan Community College Association her proposed fiscal 2008 budget, Detroit Lions Charities ...... 14 nurses in Michigan by 2015. Detroit Tigers ...... 11, 13 says allowing colleges to offer the degrees would called for a three-year initiative Downtown Detroit Partnership . . . . 11 provide increased access and affordability to to train more than 500 additional Erie SeaWolves ...... 12 students who want to pursue a bachelor of sci- nursing faculty and graduate Esquire Properties ...... 1 42,000 Facton Inc...... 29 ence in nursing, or BSN. That in turn would more than 3,000 additional nurs- Ferchill Group ...... 32 mean a greater supply of bachelor’s-trained es to combat a Michigan nursing ...... 13 Qualified applicants to baccalaureate and Fort Wayne Wizards ...... 12 nurses who could seek a master of science in shortage estimated to reach GCL Tigers ...... 12 graduate nursing programs turned away in Redman General Growth Properties Inc. . . . . 3 nursing degree, or MSN, and fill demand for 18,000 people by 2015 because of 2006 due to insufficient number of faculty, General Motors Corp...... 10 teaching faculty, said Michael Hansen, the as- retirements and defections to other professions. General Sports and Entertainment . 12 clinical sites, classroom space, budget But Barbara Redman, dean of the Wayne State Uni- Hantz Group ...... 16 constraints and other reasons. sociation’s president. Hendricks & Partners ...... 32 “Where do you get the MSN pool? You get See Nurses, Page 33 Ilitch Charities for Children ...... 14 J.C. Penney Co. Inc...... 3 ...... 13 Katherine Beebe & Associates . . . . 32 Kostal of America Inc...... 29 Lakeland Tigers ...... 12 Lear Corp...... 1 Mich. Assoc. of Home Builders . . . . . 6 Mich. Association of Realtors . . . . . 6 Mich. Business and Prof. Assoc. 24, 28 Mich. Comm. College Assoc...... 3 Moten Group ...... 32 Nathan, Neuman ...... 24 Entrepreneurial hotbeds NFL/Youth Education Town ...... 14 Noble International Ltd...... 4 Oakland Hills Country Club ...... 11 Oneonta Tigers ...... 12 Palace of Auburn Hills ...... 13 Study cites Ann Arbor, Auburn Hills, Troy, Wixom THE WINNERS Penske Corp...... 11 Pistons-Palace Foundation ...... 14 The University of Michigan-Dearborn plans to honor the top Plante & Moran P.L.L.C...... 10 BY SHERRI BEGIN “What we hope to do is build a body of local cities in attracting and retaining entrepreneurs at a Project Advantage Inc...... 24 CRAIN’S DETROIT BUSINESS knowledge that we can share with communi- March 22 ceremony on its campus. Rare Foundation ...... 28 ReMax Classic ...... 17 ties across the state so they can adopt these This year’s honorees and some of their best practices as Roxbury Group ...... 32 Ann Arbor, Auburn Hills, Troy and best practices themselves,” said Kim identified by the university’s inaugural study are: SEMCOG ...... 32 Wixom are local leaders in attracting and re- Schatzel, director of the Center for Innovation Shoppes at Gateway Park ...... 3 taining entrepreneurial companies, accord- Ⅲ Ann Arbor: Uses many public-private partnerships. Markets Skillman Foundation ...... 28 Research at the UM-Dearborn School of Man- Textron Inc...... 10 ing to a study due out this week from the Uni- itself nationally and provides high levels of support to agement. startups. Toledo Mud Hens ...... 11 versity of Michigan-Dearborn. UM-Dearborn ...... 3 The study focuses on best practices in en- Wayne State University ...... 3, 28 The university plans to post the best prac- trepreneur attraction and retention because Ⅲ Auburn Hills: Five percent of commercial parcels have West Michigan Whitecaps ...... 12 tices the cities employ in those efforts and received some sort of tax abatement, the highest proportion that is where job growth is, Schatzel said. Ac- BANKRUPTCIES ...... 29 other results of its inaugural Entrepreneur- among communities in the study. Has only residential and cording to the Department of Labor, small or BRIEFLY ...... 29 ial Cities Index, which looked at 14 cities in nonresidential zoning, giving it a broad degree of flexibility on entrepreneurial firms added 12.3 million jobs new projects. Also expedites development and permit BUSINESS DIARY ...... 23 Macomb, Oakland, Washtenaw and Wayne nationally in 2006, while large firms had job processes to meet company schedules. CALENDAR ...... 21 counties, on its Web site at www.umd. losses of 6.1 million, she said. Ⅲ CAPITOL BRIEFINGS ...... 6 umich.edu on Thursday. “Entrepreneurial firms are really the en- Troy: Works to develop relationships with resident and CLASSIFIED ADS...... 26 potential businesses, calling on them to identify their In September, UM-Dearborn plans to gine that drives job creation,” Schatzel said. DIVIDENDS...... 4 launch a link to the site so that other Michi- concerns and issues and to congratulate them on successes. EARNINGS ...... 4 “If we set a climate up to attract them, they’ll Worked with , gan cities can enter their own data to bench- Moody’s Investors Service Inc. Standard & Poor’s CHRISTOPHER CRAIN . . . . . 8 find it.” and Comerica Inc. to gain a better understanding of economic mark themselves against the best practices LETTERS ...... 8 A number of business schools around the conditions and how they can better assist companies. OPINION ...... 8 and to participate in upcoming studies. country have done studies assisting commu- Ⅲ Wixom: Gives initial site-plan approval in one planning OTHER VOICES ...... 9 It hopes to expand participation in next nities with economic development, “but nev- PEOPLE ...... 27 year’s study to 50 to 60 Michigan communi- commission meeting and complete approval can be granted in er of this magnitude and never one where one to six months. Offers free wireless service, which helps RUMBLINGS...... 34 ties and to name the top 10 employing best entrepreneurial firms that operate from a Web-based platform. SMALL BIZ SOLUTIONS . . . 24 practices in 2008. See Study, Page 33 WEEK IN REVIEW ...... 34 DETROIT BUSINESS MAIN 03-19-07 A 4 CDB 3/16/2007 5:35 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 19, 2007 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Noble swaps 40% stake EARNINGS Covansys Corp. Nasdaq: CVNS 4th Quarter Dec. 31 2006 2005 Revenue...... $116,859,000 $109,961,000 Net income...... $10,287,000 $9,623,000 for Arcelor Mittal unit Earnings per share ...... $.27 $.25 12 months Revenue...... $455,471,000 $434,120,000 Net income...... $35,920,000 $37,538,000 Earnings per share ...... $.95 $.99 in $300M merger deal Michigan Heritage Bancorp OTC: MHBC 4th Quarter Dec. 31 2006 2005 Revenue ...... $3,531,000 $3,325,000 BY BRENT SNAVELY structural solutions,” Noble Net income ...... ($414,000) $338,000 CRAIN’S DETROIT BUSINESS Chairman Robert Skandalaris said Earnings per share ...... ($.27) $.22 in a statement Friday. 12 months Noble International Ltd. (Nasdaq: If the deal is approved by Noble Revenue...... $14,150,000 $12,796,000 NOBL) said Friday that it has shareholders, it will give the com- Net income ...... $313,000 $1,071,000 Earnings per share ...... $.20 $.69 signed a share purchase agree- bined company 22 manufacturing ment that would give Arcelor Mittal, plants in the U.S., Canada, Aus- Origen Financial Inc. Nasdaq: ORGN the world’s largest steel producer, tralia, Europe, China and India. 4th Quarter Dec. 31 2006 2005 a nearly 40 percent stake in Noble Noble said it expects to close the Revenue...... $25,260,000 $20,296,000 in a deal worth about $300 million. deal this summer. Net income...... $2,033,000 $903,000 Earnings per share ...... $.08 $.04 Noble, in return, will acquire Arcelor Mittal became the Tailored Blank Arcelor, a $540 million 12 months world’s largest steel company last Revenue...... $92,082,000 $74,042,000 division of Luxembourg-based year when Rotterdam, Nether- Net income...... $6,971,000 ($2,659,000) Arcelor Mittal that makes laser- FREE SMALL-BUSINESS SOLUTIONS lands-based Mittal Steel Co. ac- Earnings per share ...... $.28 ($.11) welded blanks. quired Arcelor SA for about $32 bil- Noble plans to issue 9.3 million Rockwell Medical Tech. Nasdaq: RMTI Start-ups and Established Small Businesses: lion. shares of new common stock, at $18 4th Quarter Dec. 31 2006 2005 Noble’s purchase agreement Get experienced help solving those stubborn little a share, and will pay $131 million Revenue ...... $9,228,502 $6,456,152 also gives Noble an option to buy in cash and assumption of Tailored Net income ...... ($1,155,035) ($274,000) problems that just don’t seem to go away Powerlasers Ltd. in a separate trans- Earnings per share ...... ($.10) ($.03) Blank Arcelor debt. The compa- action if and when it is available 12 months affecting profitability and growth! nies had previously announced a Revenue...... $28,638,859 $27,694,955 orld SBA for sale. Powerlasers has plants in Real-W binding letter of intent on Oct. 27 to Net income ...... ($4,574,979) $76,808 Sponsored Concord, Ontario, and Pioneer, Earnings per share ...... ($.41) $.01 Advice! SCORE combine their businesses. Ohio, as well as a research and de- “Counselors to America’s Small Business!” During a conference call with Semco Energy Inc. NYSE: SEN analysts Friday, Noble CEO velopment center in Kitchener, Ontario. Powerlasers is part of 4th Quarter Sept. 30 2006 2005 313-226-7947 • www.scoredetroit.org Thomas Saeli Revenue...... $207,798,000 $230,599,000 said the acquisi- Canadian steel producer Dofasco Net income...... $6,490,000 $8,334,000 tion of Tailored Inc., which was acquired by Earnings per share:...... $.17 $.22 Blank Arcelor Arcelor Mittal last year. 12 months: The Powerlasers transaction is Revenue...... $640,501,000 $615,102,000 helps Noble Net income...... $7,661,000 $169,000 achieve two of subject to review by the U.S. Depart- Earnings per share ...... $.22 $.01 its strategic ment of Justice and a Dutch trust. goals: Expand- Still, Saeli is optimistic that the Somanetics Corp. Nasdaq: SMTS Powerlaser transaction could be Law Offices of ing geographi- 1st Quarter Feb. 28 2007 2006 cally and diver- completed this year. Revenue ...... $8,024,872 $5,753,715 Stephen M. Landau, P.C. sifying its Noble, which was scheduled to Net income...... $1,683,551 $988,287 Saeli Earnings per share ...... $.12 $.08 customer base. announce fourth-quarter and year- Solutions for Serious Litigation SM After the transaction is com- end earnings Friday, postponed plete, about 40 percent to 45 per- that announcement but said the IVIDENDS cent of Noble’s annual sales will results would be announced by the D end of this month. Company Amount Payable Record come from Europe. date date “A few years ago, Noble was Brent Snavely: (313) 446-0405, 2007 2007 contained to the North American [email protected] Borders Group Inc. $.11 4-25 4-4 market with about 16 million vehi- cles produced annually,” Saeli said. “After the TBA transaction …. we will be viewing our market STREET TALK potential as almost 70 million vehi- THIS WEEK’S STOCK TOTALS: 22 GAINERS, 57 LOSERS, 3 UNCHANGED cles produced annually each year.” 3/16 3/9 PERCENT CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE Noble has obtained a financing Lawsuit headed in the wrong direction? commitment from Paris-based BNP 1. Credit Acceptance Corp. $26.67 $23.44 13.78 Champion Enterprises Inc. 9.48 8.39 12.99 We specialize in turning cases around. Paribas, the world’s fifth-largest 2. bank, according to CNN’s 3. TRW Automotive Holdings Corp. 33.33 31.50 5.81 Money.com Web site, for the cash 4. Origen Financial Inc. 6.20 5.96 4.03 portion of the purchase price and 5. Veri-Tek International Corp. 6.15 5.95 3.36 • Phone calls not Delay is not your friend. working capital. 6. Borders Group Inc. 20.56 19.91 3.27 returned? Consider changing David Fallon, Noble’s CFO and 7. Compuware Corp. 9.37 9.14 2.52 attorneys now. executive vice president, said the 8. Michigan Community Bancorp 5.12 5.00 2.40 • Don’t know the financing from BNP Paribas in- 9. Energy Conversion Devices Inc. 33.04 32.49 1.69 status of your You owe it to yourself cludes an $80 million term loan 10. PSB Group Inc. 16.00 15.75 1.59 and a $40 million line of credit. case? CDB’S LOW PERFORMERS 3/16 3/9 PERCENT to visit our website for Warren-based Noble is one of CLOSE CLOSE CHANGE • Can’t get a specific information North America’s largest manufac- 1. Oxford Bank Corp. $47.58 $47.60 -0.04 straight answer? and to call today turers of laser-welded blanks for 2. Kaydon Corp. 41.13 41.16 -0.07 the automotive industry and is ex- 3. Domino's Pizza Inc. 31.30 31.35 -0.16 for a confidential • Feel like you’re pecting 2006 total sales of about 4. Saga Communications Inc. 9.77 9.79 -0.20 $600 million. Laser-welded blanks wasting your consultation. 5. Ramco-Gershenson Properties 34.63 34.72 -0.26 are different types of steel welded 6. Sun Communities Inc. 30.67 30.77 -0.33 money? together to form panels and tubes 7. DTE Energy Co. 46.31 46.48 -0.37 used for automotive doors and oth- www.slandau.com 8. Syntel Inc. 34.23 34.47 -0.70 er body parts. 9. Semco Energy Inc. 7.60 7.66 -0.78 Stephen M. Landau, PC, has 248.358.0870 “Signing the purchase agree- 10. Kelly Services Inc. 31.10 31.35 -0.80 ment with Arcelor Mittal marks decades of experience substituting 30100 Telegraph Road, Suite 428 Source: Bloomberg News. From a list of publicly owned companies with headquarters in all types of civil litigation in Bingham Farms, MI 48025-4564 an important milestone for Noble in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading federal and state courts. on its journey to becoming a global at less than $5 are not included. © 2007 Stephen M. Landau, P.C. supplier of advanced automotive ANpageAD2.qxd 2/13/200712:10PMPage1

© 2007 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved. Avery, Marks-A-Lot, the Crown Cap Design, and all other Avery brands are trademarks of, and used here under license from, Avery Dennison Corporation. DETROIT BUSINESS MAIN 03-19-07 A 6 CDB 3/16/2007 3:36 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS March 19, 2007 Some seek fast action on ‘pop-up’ tax-relief bill

LANSING — House Bill they own the home. “Our concern is that it creates an To that end, House Republicans report Monday that if the state 4440 is what Michigan Asso- Currently, under Michi- inequity in the market,” said today planned to unveil a compre- passes a tax reform and budget ciation of Realtors CEO Bill gan’s 1994 Proposal A Dawn Crandall, political affairs di- hensive property-tax reform plan. package that addresses the struc- Martin calls a “market school-finance reforms, rector for the Michigan Association Their proposal includes mea- tural budget imbalance in a timely mover.” the taxable value can rise of Home Builders. sures that would: manner, Michigan’s credit outlook ■ He said the bill, which dramatically at sale, to The association did secure a Create a “supercap” on prop- could be revised to stable. It is cur- would temporarily elimi- match the property’s as- measure in HB 4441 that exempts erty tax increases by limiting or rently AA with a negative outlook. nate the so-called “pop- sessed value. new homes from prohibiting in- up” in assessments that The House also passed the increase in the creases in the tax- Even so, however, the state faces occurs when property is HB 4441, which would in- transfer tax, an ex- able value of a remaining challenges “that will re- You either kill strain the rating from its previous- sold, could indeed boost CAPITOL BRIEFINGS crease the real estate emption that Cran- “ home when the the real estate market as transfer tax on home sales dall said could be home’s market val- ly high levels,” Wiemken said. Amy Lane it, or pass it House Speaker Andy Dil- during the period. Both used as a market- ue increases by less He said that Granholm’s pro- lon, D-Redford Township, and oth- bills are sponsored by Rep. Andy ing tool. quickly. than inflation. posed Michigan Business Tax, er champions of the measure con- Meisner, D-Ferndale. For other home ” ■ Require an as- which would use sales, income and tend. The Senate plans to consider the sales during the 18- Bill Martin, CEO, Michigan sessment notice to assets as a base for a tax to replace But Martin said lawmakers bills, but they may not see action month period, the Association of Realtors emphasize the Michigan’s single-business tax, change in assessed can’t afford to sit on the issue. until negotiations over the state’s transfer tax would “further widens and diversifies “You either kill it, or pass it current-year budget deficit are out rise from $3.75 to $4.25 on each $500 value and the taxpayer’s right to the base that should produce a quickly,” Martin said. “It clearly of the way. of property transferred. Proceeds appeal. ■ more stable and perhaps consis- has implications in the market- “Until the 2007 budget matter is from the increase would go to local Require voter approval of all place, and it can either drag the taken care of, you’re not going to governments, for use as funding communitywide special assess- tently growing revenue stream market down further, or it can see any movement out of the Sen- that supports public-safety opera- ments. and helps to keep tax rates compa- ■ start increasing activity quickly.” ate,” said Matt Marsden, press sec- tions. Specify that an independent rably lower.” The latter, he said, would occur retary to Senate Majority Leader House Republicans opposed the appraisal represents a property’s Granholm’s 2 percent tax on ser- if lawmakers debate the measure Mike Bishop, R-Rochester. legislative tie-bar between HBs value, leaving government to bear vices, proposed to take effect June the burden of proof with regard to for the next few months, causing He said Bishop and the Republi- 4440 and 4441, saying the transfer- 1 if passed by the Legislature, assessments. people that are contemplating buy- can caucus are interested in en- tax bill was a tax increase hidden ■ Reduce the amount of the pop- would help avoid additional bud- ing a home to hold off on their pur- couraging growth in the housing inside “otherwise legitimate re- up when property is sold and get cuts in 2007 if passed in a time- chase. market and the bills have merit. form efforts.” A tie-bar means that equalize tax rates across commu- ly manner, Wiemken said. The House last week passed HB But there are also outstanding both bills must be passed and nities. But he said that there “may also 4440, which would eliminate the questions that need to be ad- signed into law for either to take be some uncertainty regarding pop-up on the transfer of a princi- dressed, like “why 18 months, effect. pal residence from March 1, 2007, (and) what happens at the end of “If we’re going to offer relief, State’s credit rating how much money the state will ini- to Sept. 1, 2008. The bill would al- that period?” Marsden said. let’s offer some relief,” said Matt tially receive from its new revenue low residents who buy a house in In addition, Michigan home Resch, press secretary to House hinges on budget, taxes sources.” the next 18 months to inherit the builders say new-home sales Minority Leader Craig DeRoche, Standard & Poor’s Managing Di- Amy Lane: (517) 371-5355, seller’s taxable value for as long as would be put at a disadvantage. R-Novi. rector James Wiemken said in a [email protected]

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Page 8 CRAIN’S DETROIT BUSINESS March 19, 2007 OPINION Temporary ‘pop-up’ ban a needed boost ichigan’s cellar-of-the-nation jobless and economic growth rates have combined to create a hopeless, M “stuck in neutral” psychology across the state. That’s one reason we favor the bills passed by the state House last week that would, for 18 months, eliminate the so- called “pop-up” in taxable value that occurs when a home or condominium is sold. For most Michigan residents, their home is a primary asset. Sales are lagging in part because people who want to buy can’t sell the homes they’re in — and they are daunted by the prospect that their property taxes will soar under the terms of the 1994 Proposal A that changed public school funding in Michigan. Under that constitutional amendment, tax increases are limited each year, but when ownership of a property changes, the taxable value can increase to the assessed value. Local governments are concerned the plan would produce revenue losses not just in the short run, but over the entire time the buyers own the homes. But home sales are stagnant now, with no increase in tax revenue. The Senate should en- dorse this opportunity to jump-start the real estate market. It will create movement not only in home lending but in any number of service and retail outlets as people remodel and fur- LETTERS nish new homes. We could use a bit of stimulus in Michigan. The better nursing solution Fewer governments needed Michigan has a nursing shortage, and two-year community Editor: zoning; and provide fire and police Crain’s Detroit Business colleges think they could help with special legislation to allow “Vote yes on project,” your opin- protection, cemeteries, parks and welcomes letters to the editor. ion on Harvest Corners (Feb. 26), recreation facilities and programs, them to offer four-year nursing degrees. All letters will be considered for brings to mind a larger issue: We among others. Before the state Legislature acts to allow two-year colleges publication, provided they are need to have a conversation in Township officials who are elect- signed and do not defame to offer four-year degrees, it should make sure this plan will Michigan regarding changes in ed — such as the supervisor or actually resolve the problems in the nursing pipeline. individuals or organizations. the structure of government. Letters may be edited for length clerk — are the people who run the As Amy Lane reports on Page 3, a national study showed As many businesses in Michigan and clarity. daily operations, unlike cities and are reorganizing, restructuring, villages, where the norm is to hire nearly 43,000 qualified applicants were turned away nation- Write: Editor, Crain’s Detroit creating more efficient and effec- educated and experienced staff in wide from baccalaureate and graduate nursing programs in Business, 1155 Gratiot Ave., tive operations, why are we not the particular subject area. (I ac- 2006, with 71 percent of those surveyed citing insufficient num- Detroit, MI 48207-2997. looking for government to do the knowledge there are some very ber of faculty. Other factors were lack of clinical sites and same, especially when income and E-mail: [email protected] skilled and knowledgeable town- classroom space, budget constraints and other reasons. budgets are down and costs are ris- ship officers, especially where I Fans of expanding the four-year degrees to community col- ing? Why are we not demanding to do business in a day. Each town- live, but we need to recognize that leges say it would help create a larger pool of nurses available consolidation or better division of ship measures an average of 36 every four years they can be voted to pursue master’s degrees, the credential required to teach at responsibilities? Is it too political to square miles. But have they out- out of office. Imagine if every four the college level. But is there actually a shortage of master’s- even begin a conversation? (As an lived effectiveness? years your company’s top manage- aside, certainly Harvest Corners In Michigan we have 1,529 units ment could be tossed out.) level nurses? We suspect many choose not to teach because will increase the tax base, but most of government, of which 1,242 are Perhaps it’s time for charter they can earn more money in clinical or administrative roles. residential developments do not townships. State laws authorize townships to become cities, and Some Michigan hospitals and universities have created in- cover the costs to provide munici- townships to perform a wide vari- have county government assume novative programs to allow experienced nurses to teach on-site pal services.) ety of functions: Townships are re- the functions of nonchartered while they maintain their hospital jobs. Another way to expand Township government was es- quired to perform assessment ad- townships. tablished because of Thomas Jef- ministration, tax collection and It is understandable that Oak- programs is to offer bonuses to qualified nurses to teach. ferson’s concern for a resident’s elections administration. Town- land Township residents desire a Either would be faster and cost far less than creating a new ability to ride by horseback to the ships may choose to enact and en- infrastructure for four-year degrees at community colleges. government office and back home force ordinances; do planning and See Letters, Page 9

CHRISTOPHER CRAIN: Reclaiming a sport — and a city It’s hard to imagine, but they’ll and significant other bles and How We Can Although Dave Winfield is a to be convincing. He discusses the be playing baseball at Comerica that you’ll be taking and Must Solve Them. Hall-of-Famer, he might be best declining interest among the Park soon. Another Tigers season some summer after- Admittedly, I fall into known to the casual fan for his younger population, who look up to begin, but this time, it feels a lot noons to catch those the “renewed interest” heroics in game six of the 1992 to skateboarders and surfers in- different. Actually, the fact that I priceless matinees. category of fan. Even so, World Series. It was the same sce- stead of five-tool second basemen know the starting date proves Well, you wouldn’t I was greatly entertained nario that every kid has fantasized for their childhood heroes. While things are different this year. I’ve be alone. But maybe, by Winfield’s insights about in a back yard or an empty baseball has been struggling with even caught myself checking the just maybe, it’s been a into the game. It reads parking lot. Two men on base, labor contracts and steroids, the box sores to see how the team is while since you’ve fol- more like a manifesto, down by one, two men out, three NFL and NBA have replaced it as playing down in Lakeland. How lowed the sport closely. about what is wrong strange ... And no one wants to with the business of balls, two strikes, 11th inning — the de facto sports of most Ameri- If you’ve decided that last year’s sound like a Johnny- baseball and what you get the point. He wins the cans. World Series run was more than a come-lately, fresh-on- should be changed for game and the World Series in dra- Any book that offers a road map flash-in-a-pan, Cinderella story, the-bandwagon fan. So here’s a tip. baseball to achieve its potential, matic fashion at age 41. to reclamation of a once-grand en- perhaps you’ve bought season Pick up Dave Winfield’s new book, and reclaim its former title as Winfield has the credibility to tity should always be of interest to tickets, and informed your boss Dropping the Ball: Baseball’s Trou- America’s Pastime. be taken seriously, and the passion Detroiters. DETROIT BUSINESS MAIN 03-19-07 A 29 CDB 3/16/2007 6:10 PM Page 1

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 29 BRIEFLY Granholm: German battery packs for three hybrid ve- fast-growing markets, said John Authority has taken responsibility trict named for the near-east side hicles: the Saturn Vue and Aura Carroll, partnership executive di- for establishing and managing a African-American neighborhood. supplier likely to hire 80 Green Line models and the 2008 rector, as well to attract Indian Paradise Valley Business and En- Paradise Valley housed black busi- Gov. Jennifer Granholm on Chevrolet Malibu, due this fall. businesses to Southeast Michigan. tertainment District and is getting nesses including notable restau- Wednesday said that auto supplier Energy Conversion Devices has Those traveling to India include $10 million from the casino devel- rants and nightclubs, but was de- AVL Powertrain Engineering Inc. is hired UBS Investment Bank, while representatives from the Regional opment fund to do so. stroyed by urban renewal and likely to hire 80 workers to expand Chevron will be represented by Partnership, Stonebridge; Oakland On March 14, the Economic Devel- highway construction. its Michigan operations. Goldman, Sachs & Co. County Economic Development De- opment Corp. transferred $10 mil- The district has a working The jobs are in addition to 125 — Crain News Service partment; Global Services Resources lion authorized by the Detroit City group including representatives workers previously announced that L.L.C.; Acro Service Corp.; Butzel Council to the DDA, which owns from the Detroit City Planning Com- AVL would hire as part of a new Delegation heading to India Long; Virchow Krause & Co.; AsiaNA four Harmonie Park buildings be- mission, the Detroit Planning and De- $2.9 million engineering technical Supply Solutions L.L.C.; UPS and ing designated for the district. velopment Department and the De- center in Plymouth Township. A 13-person delegation from NetLink Software Group. Also on March 14, the DDA troit Economic Growth Commission, Granholm made the latest an- Southeast Michigan, led by the De- — Robert Ankeny board OK’d the $2 million pur- to develop programs as well as nouncement after meeting in Aus- troit Regional Economic Partnership, is chase of a 0.4-acre parking lot at physical sites to accomplish the tria with executives from AVL, as scheduled to visit India Wednesday- Detroit DDA gets $10M 1468-1496 Randolph St. to supple- goal, said Waymon Guillebeaux, part of an investment mission. Ear- April 1. to manage new district ment the district. vice president at the DEGC, which lier in the week, she announced The mission is to help Detroit- The City Council approved the staffs DDA projects. Michigan investments by Ger- area businesses expand into India’s Detroit’s Downtown Development entertainment and business dis- — Robert Ankeny many-based firms that included Kostal of America Inc. and Facton Inc. Kostal plans to relocate its Novi operations to Troy and expand in a $13.6 million investment that will create 203 jobs, while Facton plans to spend $1 million to open a North American office in Auburn Hills, creating 59 jobs. — Robert Ankeny 2 companies to pay $11.75M in federal dispute Ajax Paving Industries Inc. of Troy and Dan’s Excavating Inc. of Shelby Township have agreed to pay the U.S. government $11.75 million for falsely representing the amount of work performed by three disad- vantaged business enterprises on federally funded highway con- struction projects at Detroit Metro- politan Airport’s midfield terminal from 1998 to 2003. Neither company admitted the government’s contentions. Chris Peyerk, president of Dan’s Exca- vating, and James Jacob, CEO of Ajax Paving, said in a statement that both companies continue to be in good standing with the state and federal government and are cur- rently working on the federally funded Lodge Freeway reconstruc- tion in Detroit and Southfield. — Shawn Selby Cobasys hires investment banker Cobasys L.L.C., the leading North American producer of nickel-met- al batteries for hybrid vehicles, said Wednesday that it has hired MAKE DEPOSITS and an investment banker to “explore strategic alternatives.” MIND THE STORE — NOW THAT’S Typically, this means a compa- ny is looking for buyers and or ma- jor new investors. A company MULTITASKING. spokesman refused to comment further. The Orion Township company — a 50-50 joint venture between GET MORE DONE IN LESS T IME W I TH REMOTE DEPOSI T. Chevron Technology Ventures L.L.C. and Energy Conversion Devices Inc. Announcing the greatest time saver since Internet banking. Now there’s never a rush to — is growing. The company has landed contracts with General Mo- get to the bank before it closes; deposit checks 24/7, right from your desk. And funds tors Corp. to supply nickel-metal deposited by 8 p.m., ET, are available the next business day. Just scan your checks, validate the totals, then securely transmit the check images to National City for deposit. To learn more, visit NationalCity.com/remotedeposit or call 1-888-NCB-4BIZ (622-4249). BANKRUPTCIES The following business filed for Chap- ter 7 protection in U.S. Bankruptcy Court in Detroit March 9-15. Chapter 7 involves total liquidation. Vantage Industries L.L.C., 3720 Lapeer BUSINESS BANKING • PERSONAL BANKING • INVESTMENTS • MORTGAGE LOANS Road, Auburn Hills, involuntary Chapter 7. Assets and liabilities not available. — Compiled by Bowdeya Tweh Member FDIC • ©2007, National City Corporation® DETROIT BUSINESS MAIN 03-19-07 A 30 CDB 3/16/2007 7:11 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS March 19, 2007

GEOTECHNICAL Icahn: Lear positioned well in industry ■ ENVIRONMENTAL From Page 1 ing Wall Street. Rossiter’s desire to cut costs the than 35,000 companies worldwide. CONSTRUCTION Just last spring, in the wake of a right way, and said that dramatic Pzena said he will meet with Insti- YABBA ENGINEERING Chapter 11 bankruptcy filing by cost cuts or layoffs would be the tutional Shareholder Services as Toledo-based Dana Corp., Lear’s wrong thing for Lear to do. soon as Lear issues a proxy to its stock price sank as low as $15.60, Instead, Icahn said, Lear must shareholders that would enable or a market value of just over $1 cut costs by continuing to invest in them to sell their shares to Icahn billion. new products, technology and and his companies. DABBA DO At the time, numerous media re- plants. Pzena, who argues that Lear is ports included Lear on a short list Lear has struggled in recent on the cusp of a financial turn- of companies that could eventually years, mostly because its interiors around, said he has met with insti- be vulnerable for Chapter 11 bank- From topsoil to bedrock and every layer in between – the division was unprofitable. tutional shareholders controlling ruptcy, and customers and suppli- However, Lear fixed that prob- geotechnical, environmental and construction engineering experts about half of Lear’s shares and is ers were losing confidence in the lem by selling its European interi- heartened by their opposition. at G2 can’t wait to unearth your site’s possibilities. company. ors division to New York-based WL Lear stock has been trading just “Bob and I were talking about Ross & Co. L.L.C. and is also close to above Icahn’s $36-a-share offering his vision for the company, and he Troy, MI: 248.680.0400 completing an agreement to sell its price and closed Friday at $36.65. said it’s hard to maintain a long- North American interiors division However, Pzena was selling Brighton, MI: 810.224.4330 term focus in volatile and difficult to Ross. shares last fall when Lear’s stock Chicago, IL: 847.353.8740 market conditions, because if you That will leave Lear primarily was trading in the $20s around the www.g2consultinggroup.com stumble and the stock goes down building seats same time that Ic- even in the short term, your cus- and electron- ahn purchased tomers and suppliers start to wor- ics. ry,” Icahn said. “So then I suggest- Bob (Rossiter) about 8.7 million Lear hasn’t ed ‘Why don’t you think of taking “ shares for $200 mil- UNEARTHING POSSIBILITIES been alone in it private?’ And he said, ‘Let’s ex- and I were talking lion. its struggle to plore it.’ ” Pzena has said run a prof- Typically, companies fear Icahn about his vision for that while it has sold itable interiors and resist his investment offers. the company ... So some shares in re- But Icahn said he and Rossiter hit business. cent months it did so it off almost immediately last Southfield- then I suggested because it also ac- spring when he first began invest- based Collins & quired most of its ing in Lear. Aikman Corp. 'Why don't you Lear shares when “I think the management is pret- filed for Chap- the company’s stock ty good,” Icahn said. “I think his ter 11 bank- think of taking it was trading in the 2AYMOND*AMES vision is right on. … He is sort of a ruptcy in 2005, teens and typically visionary kind of guy and we got and the seg- private?' automatically sells !SSOCIATES along.” ment is widely ” shares in the compa- Rossiter, in an interview with regarded as Carl Icahn nies it invests in as ISPLEASEDTOANNOUNCEOUR Crain’s in February, said much the among the the share price in- same thing. most chal- creases. NEWLOCATION “Why would you fight a guy who lenged in the automotive industry. “The fact is that I bought it at $23 wants to invest in us and help in “In this case, I really don’t think a share and I believe that gave the IN$EARBORN what certainly it’s management’s fault that they company a lot of credibility,” Ic- are tumultuous face the problems that they do,” Ic- ahn said. “Since I bought in in Oc- times?” ahn said. tober the stock is up 45 percent. It Rossiter also With the interiors problem close is interesting that Pzena now says 4OWN#ENTER$RIVE\3UITE said in Febru- to being solved, Icahn sees a com- $36 is not enough. He had an oppor- ary that the pany with deep automotive roots tunity to buy a big block at $23 in $EARBORN -) time is right for and long-term potential. the same transaction with the Lear to become “They are in a business with big company that I entered into, and   \&AX   a privately held barriers to entry. People don’t re- turned it down.” company. alize that seats are not a commodi- When Lear accepted Icahn’s of- “In my per- Rossiter ty business. They are in a business sonal opinion, I fer the company said it would ac- that takes some cept alternative pro- 0LEASEVISITOUR7EBSITEFORUPDATESASWECONTINUETOGROW think a leveraged buyout is ab- skill,” Icahn said. solutely the right place for my posals for a 45-day RAYMONDJAMESCOM But critics have company to be at this time.” I decided it period. However, said that Icahn sees On Friday, Icahn also said this “ value in Lear because any alternative buy- would be the wrong time to change was important he’s offering to buy it er faces a $100 mil- Lear’s management structure. for less than the com- lion break-up fee. “They have a lot going on there. to keep the pany is worth. That 45-day period At this point, to change the man- expires next Mon- agement would be damaging,” he Icahn’s offer in- management day. said. “I decided it was important to cludes the assump- steady. keep the management steady.” tion of about $2.5 bil- ” Lear also is facing Icahn also said he likes lion in debt and an at least seven law- offer to buy out all Carl Icahn suits that challenge Lear shareholders for Icahn’s buyout offer. about $2.8 billion, or $36 per share. One lawsuit, filed in U.S. District Pzena Investment Management Court in Detroit, claims that Lear’s LLC , of New York, which controls management agreed to sell the about 10 percent of Lear’s stock, company for much less than it was has said that it believes Lear is worth and is in violation of the its Drive your business worth as much as $60 per share duties to properly mange its em- with the strength of and immediately announced its opposition to the deal in February. ployee retirement income security Last Thursday, Richard Pzena responsibilities. our experience told Crain’s sister publication Au- “We believe that the lawsuits tomotive News that he is pulling are without merit and intend to de- Find a fresh perspective from a group out all the stops to fight Icahn. fend against them vigorously,” of local, experienced business leaders. Pzena said that he plans to lobby Lear said in its annual report. consultant Institutional Shareholder Icahn declined to comment on Services to recommend against the the lawsuits. Instead, he’s looking $5.3 billion acquisition. at the future. Institutional Shareholder Ser- “The point that people are miss- vices, of Rockville, Md., is an influ- ing with this is over the long term, ential adviser to institutional in- I think it’s a great value,” Icahn vestors on proxy voting and said. “You buy them when nobody www.TABBoards.com governance issues. The company wants them.” has about 1,700 clients and makes Brent Snavely: (313) 446-0405; voting recommendations for more [email protected] DETROIT BUSINESS MAIN 03-19-07 A 31 CDB 3/16/2007 6:48 PM Page 1

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 31 Tax: 6 percent service tax floated as replacement for SBT ■ From Page 1 be a potential gross-receipts tax,” es would probably fare best under Burns said. the Senate plan because of the tax- TIMING IS EVERYTHING He said the auto dealers are payment choice it offers. among several business groups, He said the state needs to act on House and Senate leaders said last week that moving into Michigan, but has put it on hold because they whom he would not name, assessing an SBT replacement by June, to al- forward discussions on a replacement to Michigan’s don’t know what the tax is going to look like. They want the services-tax idea. “We review low adequate time for the Michigan single-business tax, set to expire at year-end, remains to have a little more certainty so that they can make every plan that is brought forward Department of Treasury and business a top priority. their decisions about how the economics of the because you never know which one to adjust. However, that still might mean an SBT replacement expansion will work.” might be the plan,” Burns said. “The sooner, the better, for busi- won’t be agreed upon until July, and that’s not soon House Speaker Andy Dillon, D-Redford Township, said he Proposals currently in legisla- ness,” Owens said. “But I’d rather enough for some. would like to move toward a framework in the next two tive form include: have a better plan later than a bad “You need to have this, this spring,” said June weeks, before the Legislature leaves for its two-week spring break, to work on proposals over the next two ■ Gov. Jennifer Granholm’s plan sooner. Summers Haas, a former Michigan revenue commissioner and partner in the Lansing office of law months and be done at the end of May. Michigan Business Tax, which “We don’t want a plan that we firm Honigman Miller Schwartz and Cohn L.L.P. “You go Senate Majority Leader Mike Bishop, R-Rochester, said the would use sales, income and assets have to complain about for the beyond June 1, it’s going to cause problems. business-tax debate has always been a top priority, but as a base and would also include next 30 years, like we did the sin- Businesses don’t know how to plan for what their tax resolving Michigan’s current-year budget deficit has had to personal-property tax credits for gle-business tax.” burdens or obligations are going to be for next year. come first. His timetable: By July, “at the very latest.” certain businesses. Amy Lane: (517) 371-5355, “I have a client in Ohio who is considering expanding — Amy Lane ■ The Michigan Chamber of Com- [email protected] merce-favored proposal to tax busi- nesses on business income and gross receipts, and provide a per- sonal-property tax credit for all businesses. ■ A Senate Republican plan that offers businesses a choice of paying a modified gross-receipts tax or a business-income tax. New industri- al personal property would be ex- empt from personal-property tax; “When it comes to managing your assets, recently acquired industrial and commercial property could receive a personal-property tax credit. we not only know what it takes, we’ve got it.” The Grand Rapids Area Chamber — William D. Johnston, President and Chairman of Commerce expects legislation to be introduced soon for its propos- al: A business-activities tax that that would be similar to a modified gross-receipts tax. The Grand Rapids plan would also eliminate Michigan’s personal-property tax. House Tax Policy Committee Chair Steve Bieda, D-Warren, plans this week to start holding twice-weekly committee meetings to accommodate ample hearings on the various proposals. The Michigan chamber and An- derson Economic Group L.L.C. last week released a review of Granholm’s plan, finding positive features like reliance on taxes with low rates and broad bases to raise revenue, as well as negatives like a tax on assets and the services tax. The chamber urged the Senate to pass its proposal embodied in Senate Bill 151, and the House to move forward with Granholm’s plan minus the assets tax and tax on services, to advance common elements in each of the proposals that could form a basis for resolv- ing the issue in a timely manner. For manufacturers, the biggest concern is Michigan’s personal- property tax. Chuck Hadden, vice president of government affairs for the Michigan Manufacturers Asso- ciation, said his group is assessing all the business-tax plans, and it’s not a simple matter. For example, Granholm’s pro- posal for a 2 percent tax on ser- vices “wipes out any savings on personal-property tax that we might have” under her Michigan Business Tax plan, Hadden said. And he said Senate Republicans’ measure to provide a 20 percent credit on recent purchases, and no Putting our extensive expertise to work your needs are in investment management, property tax on purchases going on your behalf, Greenleaf Trust uses a trust administration or retirement plan forward, would still be “a step back- wards” from 2005 legislation signed team approach to provide the highest management, please call Mark Jannott in December 2005 that provides a 15 level of proactive, supportive and accessible at 248.343.9000. We’ll give it everything percent single-business tax credit for the personal-property taxes paid service available anywhere. So whether we’ve got. Financial Security from Generation to Generation on all industrial property. Charlie Owens, director of the National Federation of Independent 122 concord road bloomfield hills, michigan 48304 www.greenleaftrust.com 248.343.9000 / 800.416.4555 Business-Michigan, said the NFIB’s analysis indicates small business- DETROIT BUSINESS MAIN 03-19-07 A 32 CDB 3/16/2007 5:02 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS March 19, 2007 Rentals: Condos are still selling, but investors shift their gaze ■ From Page 1 market with some condominium Downtown as the area from New conversion plans being put off be- MAJOR PROJECTS DOWNTOWN Center to the be- LOFTS PREPARE TO GO CONDO cause of stronger demand for tween the expressways, plus along apartments. Here are some of the major condominium and apartment projects recently East Jefferson Avenue. As some downtown Detroit completed or underway in and near downtown. Most apartment projects residential projects delay plans to Citywide, Detroit in 2006 led “The market here is going to dic- have the option to convert to condominiums after five years as part of convert from rentals to for-sale Southeast Michigan in permits for financing incentives, but are not required to. tate where developers spend their housing, one of downtown’s new residential units with 739. time,” he said. And while interest earliest prominent loft However, that was down from Condominiums Belleview: (Uniroyal site, 43 acres rates may push toward rentals, es- developments will be “going 1,056 permits the previous year, a west of Belle Isle Bridge ) Between pecially if the Federal Reserve condo” next year. Westin Book Cadillac Detroit: 67 1,000 and 2,000 residential units in 30 percent decline that mirrored were to make adjustments, there is will begin units atop hotel as part of a $180 four- to six-story buildings plus retail, Lofts at Woodward Center statewide trends, according to the still opportunity to develop more selling as condominiums starting million renovation at Washington a $121.4 million project proposed by Jan. 1 as part of a refinancing deal Southeast Michigan Council of Gov- Blvd. and Michigan Ave. Developer: Bettis/Betters. condos, Blaszkiewicz said. ernments. The Ferchill Group. Prices: Steven Johnson, COO of 1001 approved Thursday by the Detroit $279,500-$1.5 million. : Tower 300 Downtown Development Authority. One example of shifting atti- units converted to condos; about Woodward L.L.C., the development tudes toward condos and rentals The Griswold Capitol Park: 80 group that plans to convert 1001 Under the plan, the DDA is 225 sold. Towers 100 and 200, with replacing with a loan of $1.3 shows up in the planned sale of units at 150 Michigan Ave., above 555 apartment units, now for sale. Woodward into residential space, Riverfront Towers’ 100 and 200 parking garage being built for said that plans have been evolving. million what had been a 1999 land Condo prices: One-bedroom units contract of $1.8 million for sale of Towers, announced in February. renovated Book Cadillac. Developer: from $125,000, two-bedroom units While the plan calls for condo- Prices: three buildings to developers Mark Rohr, Hendricks & Partners The Roxbury Group. from $200,000-$250,000 and miniums starting at 1,100 square $200,000-$400,000; penthouses Restoration Woodward L.L.C. (David larger combined luxury units from associate partner, the listing bro- up to $750,000. feet and up, it may make sense to and Burt Farbman and Walbridge ker marketing $500,000-$600,000. include rentals, he said. : (Chene West) 112 Aldinger). Watermark : Plans for an the Riverfront riverfront condominium units and a The project started with plans to The three buildings on Woodward estimated 150 units on third to 23rd Towers’ 555 fitness center; $41 million; proposed convert the 13th floor up into con- just south of Grand Circus Park floors of former First Federal units for sale or by Spingarn Development L.L.C., dos. Gradually, redesigns have were converted to 61 loft recapitalization, headed by industrialist Dave Bing, on building, Woodward and Michigan moved toward more residential apartments. The deal also included said while the the site of the former Cemex Corp. Aves. Developer: 1001 Woodward and less office space. The current historic tax credits, which required Plans could include rentals as sales process is cement silo. Prices not yet decided. L.L.C. plan calls for Manhattan-style con- the units to be rentals for five well; pricing not yet decided. years and have now expired. just getting Globe Building renovation: 1801 dos from the third floor up, which started, it’s logi- Atwater St., 45 loft condominiums @Water (Atwater): 480 units, to means substantial engineering A new TCF Bank loan for $6.8 be built in phases; 43,000 square cal that a poten- and 20,000 square feet of retail changes for the building. The first million will be used to pay off a feet of retail; east of the $4.6 million tial buyer would planned. Developer: Mark Wilcox. two floors would house office and Comerica Bank , site of the mortgage plus $350,000 in Rohr buy the proper- Prices: $200,000s to the upper service retail space. $300,000s. former LaFarge Co. cement silo. Comerica Bank equity investment ties and keep Tower 200 a rental, at Developer: Belmar Development The group also has had conversa- and $150,000 in closing costs. The Ellington: 55 units on least initially. L.L.C. Prices: High $300,000s. tions with other developers about This leaves $1.7 million for The 300 Tower is in the midst of Woodward Ave. at Mack Ave. 967 to adding an equity partner on the 1,420 square feet. Developers: upgrades and soft costs a condominium conversion and Ram Apartments project, but so far nothing is signed. Development Co. of Michigan and associated with the conversion, the Riverfront Tower properties The Sterling Group. Prices: (Prices are monthly rent) Johnson added while there is no said Brian Holdwick, Detroit developed by Alfred Taubman and $170,000-$300,000. Broderick Tower: 127 apartments specific construction timetable, the Economic Growth Corp. vice Max Fisher also have received project should be complete during president of business Park Shelton: Conversion of 220 in redevelopment plan, Woodward about $15 million in upgrades. Ave. and Witherell St. Developers: the next few years. development. The DEGC staffs the hotel apartments to condominiums DDA. About 75 percent of the Tower at Woodward Ave. and Ferry St. Michael Higgins and Fred Beal. According to a fall 2006 housing The DDA loan is to be a second 300 units are sold. Tower 200 al- Developer: Walter Cohen, Park Prices: N/A study by Katherine Beebe & Associ- mortgage and is to be repaid ready has its Neighborhood Enter- Shelton Associates L.P.., Southfield. : 140 apartments at ates, there is demand for 1,700 ad- during 2009 with $35 per square prise Zone designation that would Studios from the low $100,000s, 76 W. Adams St., Grand Circus Park. ditional market-rate residential foot from the sale of each condo. give property-tax breaks to buy- one-bedroom units from $150,000s 582-square-foot studios to 1,180- units during the next five years. — Robert Ankeny ers, which will be valuable when and larger units up to the high square-foot, two-bedroom units, The pace since 2000 has been above the market is ripe, Rohr said. $300,000s. $735-$1,685. 400 units annually; 2006 was ex- said, about specific locations and On West Lafayette, rehabilita- Hotel St. Regis: 35 condos Pick-Fort Shelby: 63 “condo- pected to bring 470 units. about the general market. tion of the Pick-Fort Shelby into a adjoining 124 renovated hotel ready” apartments planned atop Stacy Fox of The Roxbury Group, “Folks want to know how for- Doubletree Suites Hotel has al- suites, W. Grand Blvd. at Cass Ave. Doubletree Suites hotel being now working on a new condomini- Developer: St. Regis Detroit Partners sale condos are going to do, and ready shelved the idea of condos rehabbed on W. Lafayette Blvd. at um complex called The Griswold L.L.C. including Herb Strather and First St. Pricing not yet decided. whether to invest now,” on the top floors — for now. Capitol Park, said she and partner Detroit 20/20 L.L.C., 15 Detroit Merchants Row: 157 units at Blaszkiewicz said. Instead, said developer Emmett area ministers. Prices: Low David DiRita believe demand for Moten Jr., CEO of The Moten Group 1247 Woodward Ave. including 650- condos will outstrip supply down- Traditionally, 98 percent of $200,000s. to 3,000-square-foot studios, one-, of Detroit, there will be 63 “condo- town for the near future. housing in the central business two- and three-bedroom units, $775- district had been rental, “but pro- ready” apartments above the 204 Likely mix of condominiums $2,720. “In the short term, the next hotel suites. three years or so, 1,000 units will jects now on the books or in the and rental Lofts at Woodward Center: 61 He said the 1,200- to 1,400-square- not be over-reaching,” Fox said. pipeline will change that,” he said. Chene East: 64 residential and units at 1448 Woodward, 734- foot apartments could be convert- The Griswold will have 80 condo The Midtown area of Detroit, 10,000 square feet of retail square-foot studios to 1,257-square- from south of the Wayne State Uni- ed in about five years. foot two-bedroom units, $795- units atop a 528- proposed by Pittsburgh-based versity campus and Cultural Cen- “It’s too early to do condos un- Bettis/Betters Development L.L.C. $1,330. (Converting to condos next space parking der current market conditions,” Prices not yet set. year, see story, this page.) garage being ter to the New Center area, has had Moten said. built to serve more diversity of product for Nationally, the condominium Downtown’s rental inventory buildings, is to become condomini- the Westin Book years, Blaszkiewicz said. conversion trend is over, with a includes newer developments like ums next year. (see story this page.) Cadillac Detroit Grabowski said depending on sharp decline throughout 2006 in the Kales Building and Merchant’s David Blaszkiewicz, president of and its condos. market conditions, some landlords the number of projects tracked by Row as well as large older develop- the Detroit Investment Fund, is cau- With river- in certain pockets of the city may data companies like New York City- ments such as Riverfront Towers tious, but said he thinks there is front projects decide to keep developments as based Real Capital Analytics. Metro and Millender Center. Hendricks still room for condo development. not expected to rentals for a longer period. “Rents will increase in the city,” Detroit has only had a few large ex- & Partners estimates downtown Created by Detroit Renaissance Fox be ready until amples of condominium conver- Detroit apartment occupancy at Inc. in 1995 as a source of private- 2009 or later, he said. “Longer-term real estate sions in recent years, but as the more than 93 percent. sector financing for a variety of Fox said, and rental buildings holders are going to take notice.” overall housing market has de- “We need that mix of condo own- businesses and startups in the city, such as Kales and Merchants Row Brian Holdwick, vice president clined, so has interest in launching ers and the rental pool,” Grabowski the investment fund three years still several years from “going con- for business development at the new conversion projects. said. Esquire, in fact, plans to open ago refocused on real estate ven- do” after history tax credits ex- Detroit Economic Growth Corp., sees Meanwhile, the rental market is a new Woodward Avenue office tures, especially residential pro- pire, condos will be in demand. no glut of housing, either rental or on the upswing. Dan Fasulo, associ- that will promote both for-sale jects. “With downtown getting better, for-sale, anytime soon downtown. ate at Real Capital Analytics, said housing and rentals. Besides acting The fund the holes filling in, it all adds to en- It’s not uncommon for an urban while there are always going to be as a selling agent, the company manages the thusiasm about living downtown,” core to have 7,000 to 10,000 condos properties that make sense for con- works as a consultant to developers Lower Wood- she said. “Since the Book sold 63 of and apartments, he said, noting versions, he’ s seeing deals nation- to determine direction for projects. ward gap financ- their 67 units, we’ll have the 68th that a recent study showed Min- ally where investors are giving up At the Book Cadillac, being devel- ing fund created condo on the market.” neapolis with 10,000 units. on condo sales and turning develop- oped by Cleveland-based Ferchill by Detroit Re- DiRita said that several hundred “Detroit now finally is seeing an ments back into apartments. Group, all but four units are sold. naissance in people have registered on The Gris- increasing demand for urban liv- In downtown Detroit, Grabows- Some recent downtown projects 2003 to take up wold Web site, with inquiries not ing.” he said. “More and more, ki called the rental market “low- were built with tax incentives for the slack be- only from Detroiters and suburban- young professionals and empty hanging fruit” with a steady sup- remaining apartments for a mini- Blaszkiewicz tween develop- ites, but also “from exurbia, like nesters want to be downtown.” ply of younger renters who can mum of five years before convert- ment costs and projected revenue Sanilac, Lapeer and Lenawee coun- Jennette Smith: (313) 446-0414, afford $1,200 a month rental pay- ing to condominiums. streams on rehabilitated down- ties, and as far away as Japan.” [email protected] ments but aren’t quite ready for Lofts at Woodward Center, 61 town buildings. And, inquiries continue to flow Robert Ankeny: (313) 446-0404, ownership. rental units in three converted Blaszkiewicz defines Greater into the DIF offices, Blaszkiewicz [email protected] DETROIT BUSINESS MAIN 03-19-07 A 33 CDB 3/16/2007 5:34 PM Page 1

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 33 Study: Nurses: 2-year colleges want degree www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or versity College of Nursing, ques- ested in since coming to the Legis- community colleges could offer [email protected] Cites cities ASSOCIATE PUBLISHER Christopher Crain, (313) tioned the need for community lature four years ago. applied bachelor’s degrees in se- 446-1645 or [email protected] ■ From Page 3 colleges to offer bachelor’s in “We continue to see a nursing lected fields to fill unmet regional EXECUTIVE EDITOR Cindy Goodaker, (313) 446- nursing when universities like shortage, and it will be compound- economic, employer or communi- 0460 or [email protected] they allow the next step to be tak- DEPUTY MANAGING EDITOR Michael Lee, (313) en with the creation of this Web Wayne State already have the ed in future years if we don’t have ty needs. 446-0416 or [email protected] ability to train new nurses. It’s the a mechanism in place to address “I think it’s worth taking a look ASSISTANT MANAGING EDITOR/FOCUS Michelle site,” said Arthur Kraft, dean of Martinez, (313) 446-1622 or the George L. Argyros School of funding to do so, that’s the issue, the issue. With that said, the first at whether the nursing shortage [email protected] she said. and probably most pressing issue falls into that category,” Cherry BUSINESS LIVES EDITOR Shawn Selby, (313) Business and Economics at Chap- 446-1654 or [email protected] man University in Orange, Calif., For example, she said WSU has is that we have to make sure that said. “I think it’s something that GRAPHICS EDITOR Nancy Clark, (313) 446-1608 state approval to admit as many we have qualified and certified merits examination.” or [email protected] and chairman of the Tampa- COPY EDITOR Vic Doucette, (313) 446-0410 based Association to Advance Colle- as 220 students this fall in its un- faculty,” he said. Hansen said not all community or [email protected] giate Schools of Business Interna- dergraduate program, but in prac- But Sak, who chairs the House colleges would DATA EDITOR Anne Marks, (313) 446-0418 or tice can only admit 160 students Appropriations Committee’s sub- probably want [email protected] tional. WEB EDITOR Dan Eizans, (313) 446-0473 or The UM-Dearborn study is because it doesn’t have the money committee on community col- to offer bache- [email protected] to hire needed faculty. leges, said he also understands the lor’s in nursing, WEB DESIGNER/PRODUCER Ai-Ting Huang, valuable because “it’s unbiased (313) 446-0403, [email protected] … and it comes up with some “The same thing could be said bachelor’s expansion is controver- and those inter- EDITORIAL SUPPORT Anita Duncan, (313) very interesting data points that for our master’s degree program sial. He said he plans to form a ested would 446-0329; Joanne Scharich, (313) 446-0419 and Ph.D. program,” Redman work group after the legislation is need to obtain NEWSROOM (313) 446-0329, FAX (313) 446- communities can act on and start 1687 TIP LINE (313) 446-6766 said. drafted and work with all parties, state and na- focusing on in a very deliberate REPORTERS way,” he said. “Why would you start up a including universities, “to see if tional accredi- whole new infrastructure when allowing the community colleges tation, hire fac- Robert Ankeny: Covers the city of Detroit, Wayne Given that Michigan cities will County government, and law. (313) 446-0404 or be able to benchmark and enter it’s already in place. We don’t be- this opportunity … would de- Cherry ulty, develop [email protected]. lieve this is necessary,” she said. crease the nursing shortage.” curriculum, Sherri Begin: Covers nonprofits and education. their data free of charge, “even (313) 446-1694 or [email protected] small towns could find somebody “We are accredited, have the in- Sak said he is also going to pro- and make other preparations. He Andrew Dietderich: Covers health care, frastructure, have the ability to mote collaboration between com- said once legislation is passed, it transportation, international business and to gather the data and compare biotech. (313) 446-0315 or the data on the Web site and take more students. … I think we munity colleges and universities could take three years for colleges [email protected]. have the capacity, so why not fund to increase student access, partic- to be ready to start offering the de- Sheena Harrison: Covers small business, retail draw some conclusions,” Kraft and nonautomotive manufacturing. (313) 446- said. us?” ularly an issue in rural areas. grees. 0325 or [email protected]. According to the American Asso- Lt. Gov. John Cherry, who The association’s interest in Tom Henderson: Covers banking, finance and Through reviews of public technology. (313) 446-0337 or records, the UM-Dearborn center ciation of Colleges of Nursing, U.S. chaired a commission that in 2004 legislation is part of a March 1 re- [email protected]. nursing schools turned away recommended ways to heighten port to the Legislature. The re- Bill Shea: Covers media, advertising and assembled an index to measure marketing, entertainment, the business of sports, entrepreneurial activity based more than 42,800 qualified appli- Michigan educational levels and port, from a work group of and Livingston and Washtenaw counties. (313) cants to baccalaureate and gradu- ensure a skilled workforce, said statewide nursing, health care, ed- 446-1626 or [email protected] on six factors for each communi- Jennette Smith: Covers real estate and ty: clustering or critical mass of ate nursing programs in 2006 due the state needs to examine “what ucation and regulatory organiza- hospitality. (313) 446-0414 or to insufficient number of faculty, are the bottlenecks in nursing ed- tions, calls for ways to expand [email protected]. an industry or industries, tax in- Brent Snavely: Covers auto suppliers, steel and clinical sites, classroom space, ucation, to what degree are the community colleges’ production restaurants. (313) 446-0405 or centives, economic growth in [email protected]. terms of commercial building ac- budget constraints and other rea- four years gearing up for that of registered nurses with associ- sons. right now, and to what degree will ate’s degrees. However, all organi- LANSING BUREAU tivity and property values, local Amy Lane: Covers business issues at the Capitol, State Rep. Michael Sak, D- they be able to meet demand.” zations in the work group did not telecommunications and utilities. (517) 371- policies such as the existence of a 5355, FAX (517) 371-2492, [email protected]. or downtown development authori- Grand Rapids, is drafting legisla- One recommendation by the endorse the colleges’ call for bac- 115 W. Allegan, Suite 220, Lansing 48933. Commission on Higher Education and ty and brownfield redevelopment tion that would allow community calaureate degree nursing-pro- ADVERTISING colleges to offer bachelor’s de- Economic Growth was that the state gram expansion. credits, the community’s crime ADVERTISING DIRECTOR Marla Downs, (313) rates and the education rates of grees in nursing, an issue in pass legislation that defines the Amy Lane: (517) 371-5355, 446-6032 or [email protected] which he said he has been inter- criteria and process by which [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) its residents. 393-0997 After it collected the data on NEW BUSINESS DEVELOPMENT MANAGER Cathy each city, the center asked the Ross, (313) 446-0307, [email protected] ADVERTISING SALES Jeff Anderson, Terri leaders in the top-10 cities select Engstrom, Matthew J. Langan, Tamara Rokowski, questions such as what the local Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) governments do to attract and (323) 370-2477 maintain entrepreneurial Meetings to examine mass-transit plan CLASSIFIED MANAGER Melissa McKay, (313) growth, what policies and inter- 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Christina nal procedures are critical to the BY ANDREW DIETDERICH mass transit systems, Jaranowski, (313) 446-1655 process, their views on the role of CRAIN’S DETROIT BUSINESS TRANSIT MEETINGS is called New Starts MARKETING DIRECTOR Michelle Minor partnerships in local economic and is administered by MARKETING ASSISTANT Jennifer Dunn MARKETING ARTIST Sylvia Kolaski development and how they mar- A mass-transit plan along four corridors leading to March 21, Guardian the Federal Transit Au- Building, 500 Griswold, SALES SUPPORT Suzanne Janik, Andrea keted their the heart of downtown Detroit from its borders and thority, a division of the Beckham, YahNica Crawford Detroit, mezzanine level, 11 community to along Eight Mile Road is scheduled to be the subject U.S. Department of CIRCULATION Candice Yopp, Manager. a.m.-2 p.m. PRODUCTION MANAGER Wendy Kobylarz prospective en- of four meetings planned this week. Transportation. March 21, Wayne State PRODUCTION SUPERVISOR Larry Williams, trepreneurial The meetings are being hosted by the Detroit Depart- Jeffrey Boothe, a (313) 446-0301 University, 495 Ferry, firms, Schatzel ment of Transportation. Attendees will have the chance SUBSCRIPTIONS (313) 446-0450, Detroit, McGregor Memorial partner at Washing- (888) 909-9111 said. to discuss different modes of transportation for the cor- Conference Center, 5-8 p.m. ton, D.C.-based law TO FIND A DATE A STORY WAS PUBLISHED: “There’s ridors, which were selected by the Detroit Transit Op- firm Holland+Knight, is (313) 446-0367 or e-mail the Crain Information March 22, University of Center at [email protected]. real value in tions for Growth Study Technical Committee. helping the city pre- Michigan-Dearborn, 19000 CRAIN’S DETROIT BUSINESS IS PUBLISHED BY the sharing of The committee meets monthly to provide guid- Hubbard, Dearborn, Fairlane pare its plans. CRAIN COMMUNICATIONS INC. knowledge and ance, discuss interim results and review drafts of Center, Room D in the Light rail is becom- CHAIRMAN Keith E. Crain experiences documents. It consists of representatives from 21 South Building, 5-8 p.m. PRESIDENT Rance Crain Shore ing the choice for pro- SECRETARY Merrilee Crain and the discus- governments and organizations, including Mayor March 24, Samaritan jects across the country TREASURER Mary Kay Crain sion of what works well,” said Kwame Kilpatrick, the cities of Dearborn, Hamtram- Center, 5555 Conner, from Phoenix, Ariz., to Executive Vice President/Operations Michael Shore, chief communi- ck and Highland Park and the Southeast Michigan Detroit, Carloyn Cheeks Norfolk, Va., he said. William A. Morrow Group Vice President/Technology, cations officer at the Michigan Council of Governments. The committee was assembled Kilpatrick Conference “There are a number Manufacturing, Circulation Economic Development Corp. by D-DOT. Center, 10 a.m.-1 p.m. of cities in the U.S. Robert C. Adams Vice President/Production & Manufacturing The leading cities in the study The Detroit Transit Options for Growth Study is a looking at light rail,” Dave Kamis “work economic development two-year study to gain public input and develop a Boothe said. “With the change in Congress, there will Corporate Director/Circulation Patrick Sheposh very, very aggressively,” he said. plan for a mass-transit system in the city of Detroit be a lot more cities looking at light rail because I think G.D. Crain Jr. Founder (1885-1973) “I think these communities ob- that is expected to conclude at the end of 2007 with a there will be pressure from Congress to open up or ex- Mrs. G.D. Crain Jr. Chairman (1911-1996) viously can show not only other recommended plan. pand the (New Starts) program.” EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) communities but economic de- The corridors in addition to Eight Mile are Wood- Minneapolis-based URS Corp., an engineering firm 446-6000 velopers how to go about the ward, Gratiot, Grand River and Michigan avenues. specializing in government projects, is the prime Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out business of economic develop- Methods of transportation being considered are bus consultant on the study. of state, $79 one year, $138 for two years. ment.” rapid transit, light-rail transit, street car and others Megan Owens, executive director of Transportation Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Looking at best practices on the such as heavy rail or monorail. Riders United, said her organization supports the plan. Reprints: For inquiries call the reprints department community level rather than the Her organization approaches transportation on a more at: (800) 494-9051, Ext. 144 , or at “The purpose of this planning program is to move [email protected] regional or state level “is particu- regional level, supportive of such initiatives including forward with initiating rapid transit in the area,” CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is larly good because that’s where said Norman White, director of the department of a rail line that stretches from Detroit to Ann Arbor. published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. something can be done about it,” transportation for the city of Detroit. “The focus is to “A good quality rapid-transit system will have Periodicals postage paid at Detroit, MI and said Ken Morse, managing direc- multiple pieces,” she said. “This plan fits really well additional mailing offices. POSTMASTER: Send get a minimum of 50 percent from the federal govern- address changes to CRAIN’S DETROIT BUSINESS, tor, MIT Entrepreneurship Center. ment. Most studies in the past weren’t designed for into what we hope to accomplish.” Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in “If you don’t measure it, you that reason. They were designed generally looking Owens said her organization would like to see Jef- U.S.A. can’t fix it,” he said. for local support. With this we’re following pre- ferson Avenue as a corridor being considered. Entire contents copyright 2007 by Crain Communications Inc. All rights reserved. Sherri Begin: (313) 446-1694, scribed federal methodology.” Andrew Dietderich: (313) 446-0315, adietderich@ Reproduction or use of editorial content in any [email protected] The program, which provides funding to build crain.com manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 03-19-07 A 34 CDB 3/16/2007 6:03 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS March 19, 2007 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 10-16

Thank Tigers for ruary 2006 to slightly less Theatre, though the sched- Kilpatrick than $29 million last ule hasn’t been finalized. tax-filing extension month; traffic difficulties Automation Alley and Al- Royal Oak caused by construction of tair Engineering Inc., both of There’s a new deadline for paying delinquent 2004 prop- promises to its new hotel and parking Troy, announced on Mon- erty taxes, Wayne County deck on Monroe may have day their collaboration to Treasurer Raymond Wojtowicz contributed to the decline. build a bus that is lighter, beef up law more fuel-efficient, envi- mulls sale of has announced: It’s April 3, thanks to the Detroit Tigers’ ON THE MOVE ronmentally friendlier and easier to maintain than ex- successful pennant cam- enforcement Jessica Harley to the paign last year. isting buses. new position of vice presi- Gleaners Community Property owners who’ve dent, acquisition and reten- city buildings failed to pay those delin- etroit Mayor Kwame Food Bank of Southeastern Kilpatrick used his tion marketing, Borders Inc., Michigan launched a cam- quent balances, including all Ann Arbor, from director roperty in the heart lot and part of the Farmer’s fees and penalties, by March D State of the City paign Wednesday to in- speech Tuesday night to ex- of promotions, Barnes & No- crease the number of meals of downtown Royal Market lot for redevelop- 31 normally would be at risk ble Inc., New York. P Oak owned by the ment. He said he wasn’t ad- of losing their property. hort Detroiters to help po- provided to residents in six lice address the city’s crime Warren Harris to CEO, counties by 10 million at a city could go on the block as vocating selling the With March 31 a Saturday Incat, Novi, remaining pres- planners weigh the possibil- Farmer’s Market. this year, the deadline moves problem that he said has its cost of $3.3 million in the roots in drug trafficking ident, effective April 1. He 2007-2008 fiscal year. ity of selling assets such as Ellison said he expects to April 2. replaces the retiring Ulrich the City Hall, police station preliminary findings on “However, in recogni- and street gangs. CMS Energy Corp. on The mayor received sev- Herter, who will remain in Wednesday said it has com- and a nearby parking lot. possible plans to come back tion of the huge volume of an advisory capacity. The idea of selling the before the City Commission crowds expected to be eral standing ovations as pleted the $130 million sale he addressed crime issues, Terri Pontremoli to artis- of a portfolio of its business- land was introduced first in in within two months. downtown for the Tigers tic and executive director, 2004 as a way to generate opening day at Comerica often in revival-meeting es in Argentina and north- style. And the applause was Detroit Jazz Festival, De- ern Michigan nonutility revenue for the city and up- Grand Prix preview Park, and the demand for troit, from managing direc- date city amenities. parking,” Wojtowicz said, repeated as he announced natural-gas assets. creation of Detroit Police De- tor. She replaced Frank Mal- The company’s CMS En- The Royal Oak City Commis- to roll into RenCen “we will accept payments fitano, who resigned in sion voted down pursuing received or postmarked partment rapid response terprises subsidiary sold its Race fans: Start your en- September. selling the land in Septem- Tuesday, April 3.” units to respond to priority interests to Lucid Energy ber 2005. gines and drive to the Down- 9-1-1 calls, and for augment- L.L.C. of Warren, whose fi- town Detroit Partnership an- ed patrols at hotspots such RIEFLY nancial partners include So- However, the idea was BITS & PIECES B reintroduced at a March 5 nual luncheon meeting as party stores, night clubs Sterling Group has pur- ciedad Argentina de Energia commission meeting by Ter- March 29 to see two Indy 500 Birmingham attorney and bars, where top-rank- chased Chase Tower, the for- S.A. ry Drinkwine, a member of champions and hear about Henry Baskin was honored ing police command offi- mer National Bank of Detroit Angels’ Place has the commission. this summer’s Detroit Belle Feb. 25 as a Silver Circle in- cers, from Chief Ella Bully- headquarters building, 611 brought in two gifts total- Jim Ellison, Royal Oak Isle Grand Prix. ductee of the National Acade- Cummings down, would be Woodward Ave. for an ing $1 million, bringing it mayor, said he Helio Castroneves (below), my of Television Arts and Sci- part of the patrols. undisclosed price from nearer the halfway mark of supports explor- two-time Indianapolis 500 ences Michigan Chapter. He said the department New York City-based JP its $6 million endowment ing a sale. champion, and Sam Hornish Former Detroit Red Wing also is deploying a special Morgan Chase & Co. campaign. The Clinton “The city Jr., 2006 500 champion, are Doug Brown and former De- response team where moni- Chase signed a 10-year Township-based Wayne and manager and the special guests for the troit Lion Allen Hughes will be toring of crime trends lease with renewal options Joan Webber Foundation and I have been noon meeting at the Detroit among those modeling shows high incidence of for eight floors totaling the late John Dinan Jr., talking pri- Marriott at the Renaissance clothing from Prodigy in robberies, shootings or nearly 215,000 square feet founder of Livonia-based vately about Center. Royal Oak and Hersh’s of drug dealing. and will retain its main- commercial real estate firm this for Downtown Detroit Part- West Bloomfield Township On the economic and de- floor bank branch and oc- J.D. Dinan Co., made gifts of some time nership Chairman for the American Lung Associ- velopment front, Kilpatrick cupy seven other floors, $500,000 each. and just Roger Penske will give a ation of Michigan’s “Don’t reported that his adminis- Dick Wade, president of waiting for presentation on the Aug 31- Hold Your Breath: A Fash- tration has made strides to Chase in Michigan, said in OBITUARIES Sept. 2 Detroit Belle Isle do away with a $300 million the right ionable Event for Men and an announcement. time to Grand Prix. Women” fundraiser at 6 budget deficit of two years Rofin-Sinar Laser GmbH, Henriette Feikens, wife come,” Ellison p.m. on March 30 at the ago through belt-tightening a German affiliate of Ply- of U.S. District Judge John said. “When we Radisson Bloomfield Hills. and tough labor negotia- mouth-based Rofin-Sinar Feikens, died March 13. She tions. He said the current was 91. put it on the Leading the event will be Technologies Inc. announced table a couple of philanthropist and civic year’s budget would end it had acquired 80 percent Joseph Hammond, for- years ago the leader Maggie Allesee. Entry balanced and that a $96 mil- of the stock of Germany- mer CEO of Farmington City Commission is $75. For more information, lion shortfall still lingering based m2k-laser GmbH. Hills-based Jervis B. Webb didn’t support the call Pamela Ayres at (248) would be wiped out as part Renaissance Media said Co., died March 1. He was idea. At the very 784-2000 or [email protected]. of a bond refinance plan March 8 that it was sus- 78. George Prybyla minimum I don’t Brogan & Partners Conver- he’d detail in his April 12 pending publication of Style , former believe in dismiss- gence Marketing, Birming- budget message to City Magazine after its April is- co-owner and operating Thunderbowl ing an idea before ham, has won three Telly Council. sue to focus on other publi- manager of Lanes in Allen Park, died of we ask the right awards for TV commercials. cations. congestive heart failure questions.” NEWSCOM One was for a spot on sec- The Detroit Institute of Casino revenue down March 12. He was 92. Drinkwine asked the city Tickets are $60. Reserva- ond-hand smoke produced Arts will close for final reno- Harold Ryan, a former manager to look at the pos- tions are required and can for the North Carolina Depart- almost 4 percent in Feb. vation and reinstallation of U.S. representative, state sibility of selling or leasing be made at www.downtown ment of Health and Human Ser- artwork May 28-Nov. 23. A Total revenue at De- senator and Wayne County City Hall, the police station, detroit.org. For more infor- vices, and the other two summer music and movie troit’s three casinos was Circuit Court judge, died of the Williams Street parking mation, call (313) 964-8500. were for Comcast Cable. down by nearly 4 percent in festival will take place at the Detroit Film congestive heart fail- February compared with ure March 8. He last February, when free- was 96. way closures and other con- struction hadn’t yet hin- More sports, business dered downtown access. MotorCity Casino L.L.C. Being a longtime sports fan, I’ve Business Journal reported revenue of always been fascinated by (sportsbusinessjournal.com) more than $39.2 million, transactions, branding and features headlines that cover compared with about $38 marketing of teams. This week’s everything from major team sales to million last year, while GRAND DONATION Focus (Pages 11-17) takes a look at lists that feature scout salaries. MGM Grand Detroit Casino how some of our local teams run Offers a free trial of the online L.L.C. led the decline, re- A. Alfred Taubman has donated “Le their business, but if you’re yearning edition. Cheval Majeur,” or “The Grand porting revenue of $36.8 for more sports biz, try a few of Finally, Howard Bloom’s Sports Horse,” a sculpture worth $2 million, million, 10.7 percent less these links. Business News to the Detroit Institute of Arts. Sports Business International (sportsbusinessnews.com) is a than its $41.2 million a year The DIA said in a release that it (sportsbusiness.com) is a monthly useful newsletter. Anchored in earlier, when traffic from would place the 1914 sculpture magazine based in the United Canada, the site covers ownership, Super Bowl XL may have by Raymond Duchamp-Villon Kingdom and covers everything from WEB WORLD marketing and every sport you can helped boost revenue. in the Josephine F. Ford trends to marketing ideas and Daniel Eizans think of. The blog Greektown Casino L.L.C. Sculpture Garden at the executive interviews. (sportsbiznews.blogspot.com/) is dropped 3.2 percent, from College for Creative On our side of the pond, The Sports excellent as well. nearly $30 million in Feb- Studies. DBpageAD.qxd 1/11/2007 5:12 PM Page 1

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