DETROIT BUSINESS MAIN 03-19-07 A 1 CDB 3/16/2007 7:07 PM Page 1
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©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 DETROIT BUSINESS Fund to invest $400M BY BRENT SNAVELY When Jon Grabowski is trying in shopping centers CRAIN’S DETROIT BUSINESS to sell a downtown Detroit 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 Michigan, 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. Wayne State University 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 Comerica Park ...... 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 Ford Field ...... 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 Joe Louis Arena ...... 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 IS PLEASED TO ANNOUNCE OUR Crain’s in February, said much the among the the share price in- same thing. most chal- creases. NEW LOCATION “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