20100201-NEWS--0001-NAT-CCI-CD_-- 1/29/2010 5:51 PM Page 1

®

www.crainsdetroit.com Vol. 26, No. 5 FEBRUARY 1 – 7, 2010 $2 a copy; $59 a year

©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved New iPad may Page 3 ‘Be more of a business fuel ‘gold rush’ and less like a family’ for app makers Taking charge: Powermat Buzz called akin exceeds sales expectations Fraud the penalty for youth sports groups’ trust to iPhone’s debut BY BILL SHEA Some film industry projects BY SHERRI WELCH CRAIN’S BUSINESS CRAIN’S DETROIT BUSINESS in slow motion Consumer desire for Apple Inc.’s The former treasurer of the Ann new iPad multi-touch tablet com- Arbor Amateur Hockey Association, puter is expected to be driven in Inside who pleaded guilty last June to part by applications, potentially embezzling just under $1 million fueling new revenue streams for from the group, had a son in the metro Detroit’s Stage Two Strategies: New program years earlier. growing app de- Kimberly Knight likely attend- veloper commu- feature highlights problem- ed games with other parents, vol- nity. solving at second-stage unteered and helped raise funds “We definite- to support hockey scholarships ly are looking at companies, Page 4 for kids who could- it,” said Greg n’t otherwise afford Schwartz, BUDGETS to play. founder and Small Biz Solutions: Don’t How much That’s what made CEO of Moba- neglect company’s IT needs, money? A her crime hard to tech L.L.C., a vir- Schwartz look into grasp for other par- tual tenant in area youth ents — especially ANDREW POTTER the Ann Arbor Page 17 sports those on the associ- “You cut people slack, but you shouldn’t,” said Shirley Anderson, board Spark incubator VIDEO APP leagues’ president of the Ann Arbor Amateur Hockey Association. The association lost books, ation’s board. since May 2008. nearly $1 million to embezzling by its then-treasurer. ClickCast: Crain’s List Page 21 “I think the thing The company Rochester ad that was so striking has apps already agency helps to all of us was that … it was such ASIC FINANCIAL CONTROLS in development link clients, Detroit’s largest employers, a violation of trust,” said Presi- B for Apple’s customers, dent Shirley Anderson, who’s Nonprofits should have financial controls in place to guard against iPhone and has Page 20 Page 14 been a board member for about 28 embezzlement of funds and other types of fraud. Controls include: some on the years, since her own son played Transparency in all financial transactions. market for mobile smart-phone This Just In in the league. Requiring the signature of more than one person on checks. maker Ericsson; service “You cut people slack, but you Non-staff oversight of finances. providers T-Mobile, Sprint, Boost Mo- shouldn’t,” she said. “We needed bile, Orange, BlackBerry AppWorld Regular board reviews and audits of finances and tax filings. to be more of a business and less and independent mobile app stores R.L. Polk says it will move Independent reviews of financial procedures, controls and policies to like a family.” Handango, Movaya and MobiHand. provide strong financial safeguards. to Travelers Tower II The Ann Arbor Amateur “We think there will be a lot of Policies that encourage employees/board members to come forward Hockey Association — operating similarities with iPhone,” Automotive information as soon as possible with credible information on illegal practices or and marketing firm R.L. Polk this year on a budget of $546,000 violations of policies. Schwartz said, adding that he ex- pects some iPad apps to launch in & Co. has confirmed it will See Fraud, Page 21 move its headquarters to the as quickly as 90 days while others Travelers Tower complex in can take up to six months. Southfield. Mobatech is part of Apple’s app The 138,000-square-foot See App makers, Page 20 lease is the largest in South- field since 2006 and a boon Plan: DMC would sponsor residency programs for the 340,000-square-foot ABOUT THE IPAD Travelers Tower II building, BY JAY GREENE ployed by the DMC. contract negotiations. which has been vacant since Uses iPhone operating system. CRAIN’S DETROIT BUSINESS If the residency program trans- Crain’s confirmed the plan for now-defunct auto supplier Uses a multi-touch screen with fer plan is approved by the parent DMC to take over the residency Collins & Aikman left. The landscape and portrait modes. Top officials of Detroit Medical boards of DMC and Wayne State, programs with three sources fa- building was home to EDS be- Has a virtual keyboard and Center and Wayne State University which is expected in the next sev- miliar with the talks but who fore that. physical keyboard dock. School of Medicine are negotiating eral weeks, DMC would submit asked to remain anonymous. Polk is moving out of 16 GB of memory, 32 or 64 GB a plan to transfer sponsorship of an application for sole sponsor- “This will foster more coopera- 170,000 square feet in the of storage. 50 graduate medical education ship of the programs to the Chica- tion between DMC and Wayne First Center building two Wi-Fi equipped, Bluetooth capable. residency programs to the DMC, go-based Accreditation Council on State and help to increase (the miles away owned by Comes with iTunes, App Store. Crain’s has learned. Graduate Medical Education. numbers of residents in the pro- Malvern, Pa.-based Liberty Includes the iWorks suite of The two Detroit health care in- The residency program sole grams and efficiency of the pro- Property Trust. While the new productivity apps. stitutions currently co-sponsor sponsorship approval process grams),” said a Wayne State fac- the programs staffed by about 614 Doesn’t have a camera, non- See This Just In, Page 2 with the council could take three ulty member. Internet telephone capability, resident physicians who are em- to six months for DMC to com- “Dual-sponsored programs removable battery or removable plete. The council’s residency re- don’t work as well in this kind of storage and can’t run Adobe Flash view committee meets only three (declining government and com- animation. times a year. mercial reimbursement) envi- Cost: $499 to $829. Monthly Through spokespersons, DMC ronment,” the faculty member data charges are $14.99 to $29.99. CEO Mike Duggan and Dr. Va- said. “This model we are going to AT&T wireless data plans. lerie Parisi, Wayne State’s inter- try works well elsewhere and will Will become available in March im dean, declined to comment on work here.” (3G-equipped models in April). the future of the residency pro- Over the past 20 years, teach-

NEWSPAPER grams. However, they said progress is being made in the See DMC, Page 18 20100201-NEWS--0002-NAT-CCI-CD_-- 1/29/2010 5:31 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS February 1, 2010

Beaumont Hospital Troy It also garnered more grant profit economic development or- THIS JUST IN The way it was: 1995 dollars from area foundations ganization. pedestrian bridge opens and corporations, said Chief De- Fourteen biotechs ■ velopment Officer Russ Russell. From Page 1 Beaumont Hospital Troy has got a total of $102.2 million. Min- We’re always shipping — Sherri Welch opened its 600-foot pedestrian nesota was No. 1 with $199 mil- space is smaller, it is more effi- “ high-resolution graphic files bridge across Dequindre Road. lion invested in 23 companies, ciently designed to accommodate The bridge, which is part of a and Ohio was No. 2 with $105.4 the same number of employees, of 80-100MB. Care House to build new center $19.2 million expansion project, million invested in 40 companies. said Chairman, President and Care House of Oakland County We can send connects the hospital with Beau- Indiana companies got $76.3 mil- CEO Stephen Polk in a statement. plans to break ground on a $4 mil- mont’s new outpatient facility in lion, with Indiana at $38.9 mil- He also said the space has more a file that lion, 14,000-square-foot new home Sterling Heights. lion, Iowa at 36.8 million and Wis- convenient access for the firm’s in Pontiac this April. Construction costs for the consin at $16.2 million. OEM customers. size now in The organization, which serves bridge totaled approximately $9.5 Michigan was also No. 3 in 2008 Southfield-based Signature As- abused and neglected children, nine or 10 minutes. million. with $105 million, and sixth in sociates represented Polk, and the has raised just over $2 million of ” The 10-foot-wide climate-con- 2007 with $56.2 million. Southfield office of Grubb & Ellis the project’s estimated cost. trolled bridge is accessible from — Tom Henderson represented the landlord, Lehman Gary Wilson, It plans to build on land it re- the second level of the atriums in Brothers Holdings Inc., which is cently acquired on Woodward G.K. Wilson Associates Inc. the hospital and the outpatient currently being restructured in Avenue, just north of its current Jones Lang LaSalle’s Detroit head bankruptcy court. From a Jan. 16, 1995, article center. building, on the west side of about a new ISDN network for — Jay Greene Woodward on the former site of to lead Canadian expansion — Daniel Duggan telephone data transmission Ducky’s Bar. The head of Jones Lang LaSalle’s Care House said in a release Forgotten Harvest raises Detroit office has been promoted Web site runs contest that it has hired a joint venture of why someone should invest in it, to an expanded role heading up $3.1M in year-end campaign R.B. Construction Co. and Roncelli for best elevator pitch video stemming from the concept of all of the company’s Canadian Inc., both of Sterling Heights, to meeting someone in an elevator Oak Park-based food rescue business. A new Web site has launched a work as general contractor on the and having to deliver a message Forgotten Harvest’s year-end cam- platform for budding Michigan project. Jim Becker, who opened the De- quickly. paign far exceeded its projec- entrepreneurs to post video ele- It hopes to move into the new troit office in 1999, will lead Pitchcorner.com is a joint ef- tions, pulling in $3.1 million be- vator pitches to attract would-be building in the spring of 2011. -based Jones Lang fort of Rick Galdi, president of the tween November and the end of investors. — Sherri Welch LaSalle’s expansion in Canada. As part of the launch, Birming- Detroit-based Great Lakes Angels, January. Over the past 13 years, he has ham-based Pitchcorner.com has and Mike Brennan, editor of Grand Last year during the same peri- grown the firm’s presence in announced a contest that will Rapids-based MITechNews.com od, the agency raised $1.25 mil- Michigan third in Midwest Michigan, Ohio and Minnesota as award a total of $5,000 to the best Entrepreneurs can post a video lion. for VC investment in biotech the head of the Great Lakes re- five pitches, including $2,500 for for $9.95 a month. There is no reg- In its most recent campaign, gion. first place. istration fee and no minimum Forgotten Harvest used direct Michigan ranked third in the In addition to this new role, “Elevator pitch” is the term in amount of time a pitch must run. gift solicitation newspaper in- Midwest in the amount of ven- Becker will maintain his over- the entrepreneurial/investment Each pitch posted by March 31 serts, an expanded direct mail ture capital invested in biotech sight of the firm’s Detroit and community that refers to a 60- to will be automatically entered in campaign and its first-ever companies in 2009, according to a Cleveland offices. 90-second summation of what a the contest. telethon and radiothon to push report released Friday by Cleve- — Daniel Duggan new company has to offer and — Tom Henderson for more individual donations. land-based BioEnterprise, a non-

ONE source. ONE team. ONE mission.

“Pristine 48+/- Acre Lake” ONE MISSION MEANS MOMENTUM. ONE SOURCE MEANS SEVERSTAL. It’s time to build your upscale estate or development!

IMAGINE. INNOVATE. IMPLEMENT. Hidden from view and located in ideal Oakland County awaits this rare opportunity! Very unique and backs to state land on two sides. While Severstal is one of the oldest steel producers in the industry, with a history stretching back to Henry Ford, our focus is always on the future. That’s why we’ve teamed our North American facilities Consists of 117 +/- Acres with two access points. to provide customers with faster, easier and more streamlined access to our combined experience, Bargain Priced and Ready To Be Named! product offerings and resources. And, it’s why we will remain a worthy partner for years down the road. Inquire for additional details and your personal tour!

Severstal North America – headquarters and heritage in Dearborn, Michigan. Call 800-532-8857 or visit www.severstalna.com. Catherine Larive Tracy Lund ACHIEVE MORE TOGETHER. 248-534-2264 248-534-2138 www.catherinelarive.com www.tracylund.com

Information subject to changes without notice. Each office independently owned and operated. Courtesy of HVT Enterprises KW Clarkston Market 6510 Town Center Dr. #D, Clarkston, MI 48346 20100201-NEWS--0003-NAT-CCI-CD_-- 1/29/2010 5:31 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 3 Some film projects in slow motion Focus: Going Green companies have already booked Casting for incentives can drag out happy ending time at the location. S3 managing partner Jeff BY CHAD HALCOM “There have been a number of will recoup some of it through var- Spilman said S3 CRAIN’S DETROIT BUSINESS procedures to go through. It’s been ious reimbursements and tax cred- was likely able a long road over the past year its. to move faster The investors in Michigan Motion while we worked this out,” said Construction could begin later than others on Picture Studios L.L.C. could obtain Steven Lemberg, CFO of Michigan this month if the Oakland County leasing and up to $28 million in bond financing Motion Pictures and real estate Economic Development Corp. ap- opening a studio Environmental bills get for a movie production and train- company Nelson Ventures, Birming- proves a bond sale as expected on because the ing center in Pontiac on Wednes- ham. “The credit markets have not Wednesday. company has cautious reception from day — exactly a year after the pro- exactly come back to welcome us Meanwhile, Ferndale-based S3 sought no fi- business, Page 9 ject was first announced. with open arms.” Entertainment Group Inc. also an- nancing or ap- Why the long turnaround time? Lemberg said the partners will nounced about a year ago it was proval for incen- Size of the project, a possible put up all the money for the $60 scouting a location for a film stu- Spilman tives or credits. learning curve for some of its part- million Raleigh Studios Michigan dio and opened S3 Studios in Madi- Spilman said he and S3 partners Company index ners and the need for outside fi- project, on a 22 acre parcel of the son Heights last month. Larry August of Avalon Films Inc. in nancing or tax credits all could General Motors Co. Centerpoint Production work starts at the These organizations appear in this week’s Crain’s have played a role, observers say. Business Campus in Pontiac, and studio today, and six production See Film, Page 19 Detroit Business: Adaptive Materials ...... 13 Ann Arbor Amateur Hockey Assoc...... 1 Ann Arbor Spark ...... 1 Apple ...... 1 Bauer Power ...... 9 Powermat charges ahead of sales expectations Belmar Development Group ...... 5 Brogan & Partners Convergence Marketing ...... 20 BY DANIEL DUGGAN by Powermat Inc., a joint venture Coatings Specialist Group ...... 4 Conway MacKenzie ...... 18 CRAIN’S DETROIT BUSINESS created by Homedics Inc. co- HOW POWERMAT WORKS founder Ron Ferber and Ran Poli- Cooper-Standard Automotive ...... 18 Ⅲ What you do: Lay up to three Data Driven Detroit ...... 19 When a Commerce Township akine, founder and former CEO of devices on the Powermat to company launched its Powermat Magink Display Technologies. David B. Patton and Associates ...... 17 charge after you Delphi ...... 18 product near the end of last year, The headquarters for Powermat attach an adapter Detroit International Gateway Project ...... 17 company executives is in Commerce — either as a case had high expecta- Township, with 70 for an iPhone or Detroit Media Partnership ...... 20 tions for the future of employees and grow- Blackberry or as a ...... 1 Detroit Regional Chamber ...... 10 wireless power. Wireless ing. small plug-in DTE Energy ...... 9 They underesti- “ Harrison Meyer device for other cell charging is phones or MP3 Dynamic Edge ...... 17 mated demand. expects to hire more NATHAN SKID/CRAIN’S DETROIT BUSINESS players. Ecology Center ...... 10 Sales after three product develop- something that Ⅲ How it works: Magnetic induction transfers power from the pad to the Enlighten ...... 20 months beat internal ment, marketing and device. Ford Motor Co...... 9 expectations by five sales support em- consumers are Ⅲ Pro: Un-clutter your desk with one cord that can charge several devices Fry ...... 20 times, with more ployees this year. at once. Plus, it makes a cool sound when a device is placed on the mat. Gardenview Estates ...... 5 than 750,000 units Some employees are really excited Ⅲ Con: Most devices still need to have adapters plugged in before GoKnow ...... 20 sold, including acces- based in Chicago and charging, no different than using a wall plug and adapter. Harvard Development ...... 5 sories. New York. Research about. Ⅲ Retail cost: $99.99; adapters cost extra. Hayes Lemmerz International ...... 18 Beth Harrison ” and development is Homedics ...... 3 Meyer, vice president Beth Harrison Meyer, in Israel. Ignite Social Media ...... 20 of global marketing Powermat Inc. Sales through device and can retail for about $39. ny has created a “developer’s kit” Lear ...... 18 for Powermat Inc., now Christmas were The original Powermat, which can for OEMs so they can input specifi- Magink Display Technologies ...... 3 predicts 2010 revenue of $150 mil- choreographed through a major charge up to three devices, sells for cations that allow Powermat to MasTech ...... 12 lion domestically and $200 million advertising campaign and distrib- $99.99. quickly create a product that can Michigan League of Conservation Voters ...... 10 globally. ution through only Target and Best An international launch set for be integrated into a vehicle. Michigan Nonprofit Assoc...... 21 “This has been a resounding Buy stores, though a broader distri- this year will expand beyond the “With this system, we can cut Michigan Production Alliance ...... 19 success,” she said. “Wireless bution is planned this year. United Kingdom, Italy and Hong weeks or months off the develop- Michigan Professional Business Assoc...... 10 charging is something that con- “A natural location will be Kong where Powermat is being ment time,” she said. “The idea is Michigan State University ...... 11 sumers are really excited about.” places where cell phones are being marketed now. that we will adapt our technology Mobatech ...... 1 The Powermat, which charges activated,” Harrison Meyer said. Powermat also hopes to find its to their product, and we can bring Mobiata ...... 20 MP3 players and cell phones Also new this year is a smaller way into vehicles. Odette School of Business ...... 4 placed on the device, is produced Powermat that can charge a single Harrison Meyer said the compa- See Powermat, Page 21 Original Equipment Suppliers Assoc...... 18 Plunkett Cooney ...... 18 Powermat ...... 3 Southwest Solutions ...... 19 TechTown ...... 4 That’s All ...... 15 Neighborhood groups want role in smaller-city planning Transport Canada ...... 17 Travel Michigan ...... 5 BY NANCY KAFFER troit. A draft of the report was pre- Detroit neighborhoods. Turchan Technologies Group ...... 18 CRAIN’S DETROIT BUSINESS sented to members of CDAD at a Historically, they have built af- University of Windsor ...... 4 We need a meeting last week. fordable housing and funded Warren/Conner Development Coalition ...... 19 As the city of Detroit and the re- “ The report, which organizers neighborhood programs, and are Wayne State University ...... 4 gion’s foundation community be- different-looking say provides a “strategic frame- recognized as defenders of neigh- Windham Development ...... 5 gin an earnest discussion about work” for a less-populated city, borhood viability. WSU School of Medicine ...... 1 shrinking the city, community de- city. The goal is not identifies 11 possible land uses “This is a very different conver- velopment organizations are ask- ranging from high-density down- sation than we would have had a ing for a seat at the table. to re-create Detroit town to village hubs to “na- year ago,” said Tom Goddeeris, ex- Department index Crain’s reported last week that turescapes” and green thorough- ecutive director of the Grandmont the Troy-based Kresge Foundation 1950. fares. Rosedale Development Corp. and a BANKRUPTCIES ...... 21 has offered to fund the develop- ” And it marks a sea change for member of the CDAD task force BUSINESS DIARY ...... 16 Tom Goddeeris, CDAD task force ment of a land use plan for the city, members of the community devel- that produced the report. CALENDAR ...... 16 with the end goal of shrinking De- opment organizations. “There’s a growing consensus CAPITOL BRIEFINGS...... 5 Community development orga- that we need a different-looking troit, a 134 square mile city built cates of Detroit task force has spent CAREERWORKS ...... 15 for 2 million inhabitants that now the past 15 months focused on the nizations, or community develop- city. The goal is not to re-create De- CLASSIFIED ADS ...... 15 holds about 900,000. same goal — exploring possible ar- ment corporations, are chief dri- A Community Development Advo- eas of land use for a smaller De- vers of economic development in See Planning, Page 19 KEITH CRAIN...... 6 LETTERS...... 6 OPINION ...... 6 Get Health Care Extra Business, economy, public policy PEOPLE ...... 15 Read the latest news at crainsdetroit.com THIS WEEK @ Sign up to get the latest news delivered to RUMBLINGS ...... 22 your inbox on the first and third Monday of /michiganbusiness. Sign up for the new weekly WWW.CRAINSDETROIT.COM each month, crainsdetroit.com/getemail. e-newsletter at crainsdetroit.com/getemail. SMALL BIZ SOLUTIONS...... 17 WEEK ON THE WEB ...... 22 20100201-NEWS--0004-NAT-CCI-CD_-- 1/29/2010 4:47 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS February 1, 2010

“Development For Sale!” StageTwo Strategies A weekly look at problem-solving by second-stage companies. A great opportunity has presented itself in Dryden, MI! StageTwoStrategies is a weekly $50 million and about 10-100 For more second-stage coverage, go Proposed condo/multi-family 250 +/- Units. Open 63 +/- feature that analyzes a recent employees. Such firms provided to crainsdetroit.com/secondstage. business decision by a second- 35.7 percent of Michigan jobs in To sign up for the twice-monthly e- acre parcel and additional lots complete this package! stage company. These companies 2007, more than any other newsletter, go to Inquire! Priced below previous appraisal! are led by growth-focused company category. Crain’s is crainsdetroit.com/getemail. The entrepreneurs with market-ready focusing on these poised-for-growth Second Stage print section will products or services. They generally companies because of their appear in Crain’s on the third Visit: WWW.LLHOMEREALTY.COM have revenue of $1 million- enormous impact. Monday of each month.

COATINGS SPECIALIST GROUP L.L.C. Catherine Larive Tracy Lund Location: Rochester Hills shopped for radio and print , to inundate the Web with reviews 248-534-2264 248-534-2138 Description: The commercial but the cost would nearly elimi- and customer feedback with the coatings company manufactures nate its marketing budget for the aim of becoming a top result for environmentally friendly antimi- year. And the ads wouldn’t pro- Web searches on the terms H1N1, crobial products used in profes- vide customers with enough in- MRSA and antimicrobial, Brinich sional sports practice facilities sight into the said. and high-traffic commercial areas company’s Risks: Criticism. Users can such as the Detroit Lions’ practice product line, freely air any misgivings, Brinich facility in Allen Park, Oakland Uni- said Mike said. There’s also the risk that versity’s Student Recreation and Brinich, direc- negative reviews and comments Athletics Center, MGM Grand Hotel tor of commu- will become the most prevalent Information subject to changes without notice. Courtesy of HVT Enterprises and Casino and the Washington Red- nications. information on the Web. Keller Williams Clarkston Market Center 6510 Town Center #D, Clarkston MI 48346 skins training facility in Ashburn, Solution: And, since social media relies on Va. Launch a social the technologically savvy user, the CEO: Craig Andrews media cam- campaign will have its limitations. Founded: 2005 paign to intro- Expert opinion: Adrienne Employees: 13 Andrews duce its prod- Lenhoff, CEO of Southfield-based Revenue: $2.5 million in 2009, uct line to the masses. marketing firm Shazaaam! L.L.C., projects $10 million-$12 million in Employees attend sporting said using social networking tools NATURAL GAS / PROPANE HEATERS 2010. events every weekend to offer is a great way to introduce a new Problem to be solved: Coatings product samples to soccer moms, product. Specialist Group wants to enter the football coaches and general con- But Coatings Specialist needs retail market with its new line of sumers as part of the company’s to expand its exposure by culti- household antimicrobial products partnership with the National High vating relationships with the that protect surfaces and fabrics School Coaches Association. right bloggers, she said. for three months — considerably These recipients are then urged “Social media is where they are longer than most consumer an- to review the products on Twitter going to get the biggest bang for timicrobial products. But the kits and Coatings Specialist’s Face- their buck,” she said. “But they sell for $39.99 per kit, significantly book page. They can also ask ques- need to be looking at who the in- more than a can of Lysol, said CEO tions. fluential bloggers are that are Craig Andrews. “There’s an education process reaching moms and coaches in Portable Heaters (Natural or LP Gas) from 16,000 Using a $100,000-$250,000 market- to understand our products,” their target market.” to 4,000,000 BTU’s are available for sale or rent. ing budget — significantly smaller Brinich said. “Social media pro- “Mommy bloggers” are often than that of household product vides the best route for con- traditional journalists as well, Also in stock are Ground Thawers and Fans. conglomerates — the five-year-old sumers to really have an interac- Lenhoff said, and with the right company now needs to market its tive experience with us — connection, Coatings Specialist products’ benefits to already-satis- something traditional media could find itself featured in an in- fied consumers. couldn’t do.” fluential traditional media outlet. *Lift Truck Fuel* *Temporary Heat* Considerations: The company The company is also attempting — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Darwish, Second Stage editor at Crain’s Detroit Business, at [email protected]. 7200 Inkster Rd. Phone: (313)292-9100 P.O.Box 35 Fax: (313) 292-5950 Taylor, MI 48180-0035 www.propaneservices.net

S A Business beyond borders s s TechTown pencils deal with U of Windsor CONFUSED ABOUT BY TOM HENDERSON Ontario. Both cities have thriving Windsor spinoffs and other On- CRAIN’S DETROIT BUSINESS angel-investor and emerging-tech tario startups that want to expand communities. Cappola said she into the American market will SOCIAL MEDIA? TechTown and the University of plans to meet with Quebec officials take space at the Tech Two build- Windsor have signed memoranda of later this year. ing, which TechTown is expected understanding to promote cross- “We would like to develop a net- to start rehabbing as soon as pur- border business among startups in work of information-sharing pro- chase of the old Dalgleish Cadillac Ontario and Southeast Michigan. grams in Ontario and Quebec,” dealership is approved. That ap- The agreement is part of a thrust she said. “We’ll take it one step at a proval is expected soon. by Wayne State University’s Tech- time. We want to proceed in a fo- Conway said his university is Town to formalize relationships cused fashion to do these deals.” building a tech incubator that is with economic development offi- “TechTown can help Canadian scheduled to open in about 18 cials and investors in Ontario and companies get ready for the U.S. months, and companies from Quebec, said Nancy Cappola, di- market,” said Allan Conway, dean Southeast Michigan hoping for ac- rector of TechTown’s Soft Landing of the Odette School of Business at cess to the Canadian market will Center, which helps tenants from the University of Windsor. As part be offered space and services. abroad enter the U.S. market and of the joint venture, Conway has Conway said one strong cross- find such service providers as ac- funding to assign interns to work border service the business school countants and attorneys. with TechTown tenants, providing can provide is helping U.S. compa- The center houses about 30 tier- free services to American and nies with medical devices and ser- two and tier-three auto suppliers Canadian tenants in exchange for vices get quick feedback from On- from Mexico, an Israeli stem cell gaining experience in American tario health care providers on company and an Ontario clean- business practices. what works and what doesn’t and MARKETING ‡ PR ‡ DESIGN ‡ NEW MEDIA tech geothermal company. In turn, Wayne State business whether there is a good market for identitypr.com Cappola said she has begun school students will do internships them in Canada. talks with economic development in Windsor. Tom Henderson: (313) 446-0337, officials in Toronto and London, Conway said University of [email protected] 20100201-NEWS--0005-NAT-CCI-CD_-- 1/29/2010 4:24 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 5 Tourism ad buy deadline looms, funding in limbo

LANSING — The state But concerns have Government Solutions, a manage- is looking to boost its na- arisen over whether the ment and information technology tional tourism advertis- Capitol notes would be mar- consulting firm, to operate a pro- ing this summer, pump- Briefings ketable, given that the ject management office for the up- ing more money into state is borrowing grade. cable TV and running the against future revenue CSG’s duties include creating popular Pure Michigan increases. the main request for proposal that ads for a longer period. Zimmermann said the will be issued for the project, and There’s just one prob- administration is trying being responsible for ensuring the lem: Lawmakers still to resolve the issue. project meets state requirements haven’t approved a new “I think the intent is for time, cost, scope and quality. source of funding. And there; the question is, is Also involved in the contract, the ads need to be placed the vehicle passed by the which has a two-year extension op- Amy Lane soon. House financially feasi- tion, is Lansing-based technology Travel Michigan is up ble. And if not, how do consultant and integrator Dewpoint against an early February dead- we have to change it to make it fea- Inc. and Lathrup Village-based line to place a national cable TV sible.” Kunz, Leigh & Associates, a provider buy for ads it wants to start run- Meanwhile, Travel Michigan of software development, systems ning in early March. hopes to shift more ad money — if planning, project management and The state can’t proceed with the it materializes — toward national systems integration services. buy until officials know money is promotion and less into regional The state hopes to issue in Au- going to be available to pay the and in-state advertising. The ratio- gust the RFP for the up-to $90 mil- bills, and legislation that would nale is that regional and in-state lion upgrade, which will move provide funding remains in flux in markets get covered by the nation- Michigan from a largely main- the Legislature. al buy as well, Zimmermann said. frame system to a server-based “Obviously, we’re feeling a He said Travel Michigan would system designed to significantly sense of urgency,” said Travel like to spend $12.5 million on the improve UI administration. Michigan Vice President George national cable buy, up from the $10 The federally funded project Zimmermann. “We’re about 30 million spent last year on a first- could take three to five years to days out now from when we want ever national campaign. complete. to be on the air, and we’ve not Last year’s national ads ran bought one thing. We’ve not placed through June, but Zimmermann a single ad, either regionally or na- said Travel Michigan would like to Comings and goings tionally. run them this year into the fall, Christina Kuo, former legislative “The sand’s running through ending in September. The exten- director to state Rep. Ellen Cogen the hourglass.” sion would enable the state to run Lipton, D-Huntington Woods, has In December, the state House fall-themed ads as well as those become executive director of Com- passed by overwhelming margins that position Michigan as a sum- mon Cause Michigan. She replaces a three-bill package that would mer destination. Frank , who resigned to run provide state funding for tourism The state is adding at least two for a seat in the state House. and business marketing by captur- new Pure Michigan spots to its Amy Lane: (517) 371-5355, ing new tourism-generated sales lineup — an ad promoting culi- [email protected] and use tax revenue. nary tourism and one promoting The revenue would accumulate fishing. in a new fund — capped at $40 mil- lion — that would support the Pure Michigan ad campaign and UI computer contract awarded state business marketing efforts. The state has awarded a nearly To provide funds in the immedi- $6.5 million contract for work that Lobster lovers, come out of your shell! ate term, the bills propose that the will move forward a major up- new Michigan Promotion Fund grade of Michigan’s unemploy- could borrow money and issue ment insurance computer system. notes to provide sufficient revenue The State Administrative Board in to keep the state’s promotion January approved the three-year whole. contract for Chicago-based CSG

Builders group honors Gardenview Estates

BY NANCY KAFFER city was courting a new developer CRAIN’S DETROIT BUSINESS for the site. Last year, the city designated A mixed-use development at the Herman Gardens one of its target site of former Detroit public hous- neighborhoods for federal Neigh- ing project Herman Gardens is being borhood Stabilization Program honored by the Building Industry Asso- dollars. ciation of Southeast Michigan as its Principals in the residential por- residential development of the year. tion of the project are developers Gardenview Estates is a 139-acre William Phillips, vice president of mixed-use development with af- Bloomfield Hills-based Windham Introducing our Lobster Duo fordable housing including rental Development; Dwight Belyue, presi- units, senior citizen co-ops and dent of Detroit-based Belmar Devel- A broiled Cold Water Rock Lobster Tail served with your choice single-family homes. The develop- opment Group L.L.C.; and William of Lobster Ravioli or a Lobster & Shrimp Cake only $24.95. ment will also include a recreation Richardson, owner of Detroit- center, retail and parks. based Harvard Development Inc., Redevelopment of the public working together as Gardenview De- housing site has been a long time velopment Co. L.L.C. coming. Crain’s reported in 1996 The project is a joint effort of the when the housing project closed U.S. Department of Housing and Ur- that a $92 million redevelopment ban Development, the Detroit Housing would begin shortly, and was ex- Commission and the City of Detroit. pected to take about three years. The development will be honored & -61-2+,%1ˆ0-:32-%ˆ63',)78)6,-007 At that time, about 480 families Feb. 3 at an association luncheon. ;;;1-8',)007* -7,1 %6/)8 '31 lived in the 160-acre site. Nancy Kaffer: (313) 446-0412, Crain’s reported in 2003 that the [email protected] 20100201-NEWS--0006-NAT-CCI-CD_-- 1/29/2010 5:41 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS February 1, 2010 OPINION Having a good cause won’t prevent fraud ho would steal from a child’s nonprofit sports organi- zation? W Kimberly Knight, for one. As Sherri Welch reports on Page 1, Knight pleaded guilty last year to embezzling nearly $1 million from an Ann Arbor youth hockey group her son had played in years before. It’s the biggest swindle Welch found in her review of crimi- nal complaints statewide filed by youth sports groups. Most of the crimes result in thefts of $20,000 to $30,000. But for a nonprofit, that’s a tough hole to fill. And it’s an- other reminder that nonprofit leaders, including many busi- ness people serving in volunteer board roles, have to insist on such simple financial controls as requiring two signatures for every check. Normally “smart” business people sometimes give non- profits a pass, reasoning that everyone is working for the same worthy cause. That reasoning could prove to be a million-dollar mistake. Air concerns over film project Michigan’s big gamble on building a film industry may take a big step this week. A year after plans were announced to create a major pro- LETTERS duction and training center in Pontiac, private investors may have their financing completed. The package includes the sale of government-issued bonds. Say no to stem cell legislation Of three production studio projects (the others are in Allen Park and Madison Heights) the Pontiac project has the biggest Editor: holds the key to cures for these dis- On Jan. 20, 2010, the Michigan Crain’s Detroit Business eases and others. The passage of local marquee names as investors. (See story, Page 3.) Yet it welcomes letters to the editor. State Senate Health Policy Com- Proposal 2 provided hope for pa- All letters will be considered for still took a year to line up financing and tax credits to support mittee, led by Sen. Tom George, tients and their families and is publication, provided they are this project, estimated at $60 million. approved harmful legislation, Sen- bringing myriad new business to signed and do not defame ate Bills 647-652, that will severely Michigan. The investors in Michigan Motion Picture Studios L.L.C. individuals or organizations. want to sell at least $23 million in private activity bonds, with restrict stem cell research in Letters may be edited for length Tom George and Right to Life $18 million to be insured by a state employees’ pension fund. Michigan. and clarity. are trying to take away this hope. Sen. George, a Right to Life- I urge our legislators and lead- Write: Editor, Crain’s Detroit Nearly half of the remaining tab would be raised through vari- backed candidate for governor, ers in Michigan to put patients Business, 1155 Gratiot Ave., ous government tax credits. pushed these bills despite testimo- and discoveries before politics and Detroit, MI 48207-2997. The final vote on the bond sale through the Oakland Coun- ny by scientists, patients, attor- reject this attempt to impede cures E-mail: [email protected] ty Economic Development Corp. likely will come this week. neys, business people and voters and treatments that can save lives. The project plan will require an affirmative vote of the Oak- who proved these bills were un- Do not close the doors of re- necessary and so restrictive that completely disregarded the vote of search. Do not discourage new land County Board of Commissioners. they would have a chilling effect the people. They are choosing to business in the life-science arena They may first ask why two EDC members voted against on stem cell research in our state. play politics with life-saving re- in Michigan. Do not let the Right the proposal (See “Pontiac film studio project clears hurdles,” In 2008, Michigan voters spoke search that can cure and treat pa- to Life minority take away the Page 25, Jan. 25.) late last month without stating their reasons loud and clear when they voted yes tients with incurable diseases and hope of stem cell research. publicly. on Proposal 2 and lifted Michi- injuries. Sheri Mark, R.N., J.D. gan’s archaic restrictions on stem As a three-year breast cancer President, Michigan Citizens It’s important that if the project proceeds, any concerns or for Stem Cell Research and Cures cell research. Sen. George and the survivor who has lost two family Bloomfield Hills reservations from these two members be on the record and Health Policy Committee mem- members to the horrible disease of considered by the commissioners who have the ultimate vote. bers who voted for these bills have ALS, I believe stem cell research See Letters, Page 7 KEITH CRAIN: There is more to Detroit than just cars Twenty-five years ago this week, and car companies. ously, that is even nating to watch the city grow, The Internet wasn’t on the map, this headline was our motto as we There were plenty of truer today. struggle and expand into a real me- and cell phones were “car phones” launched the first issue of Crain’s places to go then — and That’s all we covered tropolis that covers even more — and rare. Health care was big Detroit Business. now — to find out about then and that’s what we than the original four counties we but not huge, and the business I wrote the first column for this the three car compa- do today. covered. community didn’t realize how im- publication 1,300 columns ago. I nies. We started covering “There is more to Detroit than portant it would be to become in- am pleased to be able to write a col- But nobody covered all sorts of local busi- just cars” has been our motto for volved with government. umn for today, as well. just the business of De- nesses that were never 25 years. “There is more to Detroit As Southeast Michigan begins Peter Brown, now publisher of troit. Even then, when reported on before. than just the city of Detroit” the long journey back to prosperi- Automotive News, was our first edi- you had two robust Retail, real estate, should be our other motto. ty, it will embrace emerging indus- tor of Crain’s, followed by Mary dailies, they were sim- health care, education When we first published, the au- tries as well as well-established Kramer, now publisher. ply too busy covering and, yes, government, tomobile industry ruled our com- ones. It was an exciting time for us. car companies, nation- were surprised that we munity and affected everything It’s been a fascinating quarter of Not many people in Detroit could al business news and were interested 25 that went on in the city. a century. understand why the city needed a pages of stock tables. They didn’t years ago. They aren’t surprised Today, we have a much smaller But as amazing as it’s been, we business paper that wasn’t even have the time, space or the inter- any longer. auto industry struggling to find its all know that the next 25 years will going to be reporting about cars est in local business news. Obvi- It has been great fun and fasci- place in the world. be even more exciting. 20100201-NEWS--0007-NAT-CCI-CD_-- 1/29/2010 4:23 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 7 OTHER VOICES: A bipartisan approach to fiscal stability

In a few weeks, the state will be- mand for services. reduce overall corporate, personal ate jobs and bolster the well-being gin its annual budgeting rite when We also recommended a “pay as income and or sales tax rates, simi- of its residents. the governor presents her pro- you go” budget process to ensure lar to what Republicans and De- It is up to us, as citizens, to re- posed budget. that any new spending commit- mocrats at the federal level were ward those leaders who provide While the specifics are far from ments can be paid for, and long- able to achieve with the Tax Re- such leadership. clear, we all expect more gloomy term fiscal forecasts to illuminate form Act of 1986. Jim Curran and Kevin Prokop news. the trajectory of the state’s budget. Our commission demonstrated were co-chairmen of the Legislative As co-chairmen of the Legisla- Finally, we recommended that that representatives from both Commission on Governmental Effi- tive Commission on Governmen- the Legislature examine the struc- sides of the aisle can find common ciency, a commission established as tal Efficiency, which has spent the Jim Curran Kevin Prokop ture of the state’s tax system, ground on most of the issues and part of the 2007 budget process. The past 18 months examining the which reflects an era when the craft a common sense approach to commissioners included representa- state’s structural issues, we can ernmental units by pooling health state’s economy looked very differ- reform. tives appointed by Majority Leader confirm what the governor’s bud- care plans across levels and units ent. In short, the path forward exists. Bishop and Speaker Dillon and the get is likely to highlight: The state of government. As an example, reducing even a It’s up to the leaders of the state Directors of the House and Senate has a massive structural budget is- Conducting a five-year work- portion of the $35 billion of annual to find similar common ground Fiscal Agencies, among others. The sue, driven by cost pressures, a force supply and demand forecast tax credits and loopholes could si- and make the tough decisions that commission’s full report can be revenue system that is out-of-step to better align the number of state multaneously reduce the size of will allow our state to once again found at http://council.legisla- with the economy, and spending personnel with the expected de- the structural budget deficit and begin investing in areas that cre- ture.mi.gov/lcge.html. priorities reflecting a different era. Our commission’s recommenda- tions chart a path through these difficult issues and toward real fis- cal reform. And they demonstrate that both Democrats and Republicans can CRAIN’S come together to craft common NEW ways for you to benefi t from

sense solutions to the state’s bud- get problems.

We achieved consensus in most areas by taking a holistic ap- Print EVENTS proach, looking broadly at the root causes of the issues and looking Online& for opportunities to take costs out @ “throughout the system.” We asked hard questions about which units of government should be doing what work and looking Crain’s for opportunities to achieve sav- Second Stage ings within — and among — the 1800 local units of government. E-newsletter NOW AVAILABLE EVENTS Our work focused on 10 areas. Second Stage quarterly Some ideas, including recommen- News, information and resources that can workshops tackle dations around higher education help you guide the growth of your company. and corrections, have already been opportunities and implemented in whole or in part. Crain’s Second Stage is designed to help challenges to business Other recommendations in- established business owners develop owners as well as clude: their companies. Restructuring local govern- peer-to-peer discussions ment revenue sharing to provide and idea sharing. local governments with visibility and certainty while also helping Crain’s print edition, e-newsletters and workshops offer: Print local governments achieve consol- Expertise from outside experts, your peers and Crain’s idation. award-winning journalism Watch for Second Stage Helping school districts Extra on the third Monday achieve savings by providing Best practices, tips, techniques “early out” incentives and addi- of the month in Crain’s tional latitude for district consoli- Profiles of growing companies and how they make decisions Detroit Business. dation. Evaluating opportunities to reduce benefits costs for all gov- Crain’s Michigan Business E-newsletter NOW AVAILABLE EVENTS LETTERS CONTINUED Crain’s Michigan Business ■ From Page 6 Crain’s Michigan Business builds community quarterly events offer and access to business news and information provocative discussions and Kudos for coverage from across the state. networking opportunities with Editor: key leaders throughout the Congrats on 25 years of provid- Aimed at civically engaged C-suite executives, ing the greater Detroit area with philanthropists, foundation executives, state. The first event occurs news and views on a timely and in- elected leaders and public-policy makers. on March 23 in Lansing. formative basis. I always look forward to Mon- Crain’s Michigan Business: day morning so I can review the Print Encourages a greater exchange of ideas, innovation and latest issue of Crain’s Detroit Crain’s Detroit Business Business online in anticipation of commerce across the state the paper copy arriving later that will have a special focus on Offers ways for leaders to network day. statewide policy issues six No other publication in our area times in 2010. carries the in-depth reporting that can be found in your publication. A 25-year anniversary is usually To advertise in Crain’s E-newsletters represented with silver. In my > Sign up for any of these e-newsletters at www.crainsdetroit.com/getemail. SIGN UP contact Marla Downs at 313.446.6032 opinion, one of the few “silver lin- > For event information & registration, go to www.crainsdetroit.com/events. ings” in our area is Crain’s Detroit or e-mail at [email protected] Business. NOW! > Subscribe at crainsdetroit.com/subscribe. Keep up the great work! Bill Kalmar Lake Orion DBpageAD.qxd 1/29/2010 3:03 PM Page 1 20100201-NEWS--0009-NAT-CCI-CD_-- 1/28/2010 4:06 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 9

A CONVERSATION WITH

Mark Bauer, Bauer Power Going Green

Mark Bauer is CEO of Bauer Power, a solar energy and wind power installation and consulting company founded in 2005. The company is based in Martin, north of Kalamazoo, with a Plymouth office open and an installation crew in the works for Supportive climate? Plymouth. Reporter Jay Greene interviewed Bauer about business opportunities in the renewable energy field in Southeast Michigan. Environmental bills get cautious reception from business What does Bauer Power do? We are installers who put in small and medium solar electric panels, water BY JAY GREENE heaters and small wind turbines for CRAIN’S DETROIT BUSINESS homeowners and businesses. We TE Energy Co. and Ford Motor Co. are provide consulting services to help people design a system or conduct an among several large Southeast Michi- D gan companies supporting, in part, fed- energy audit. We also put on free seminars to help people understand eral legislation to reduce greenhouse gas tax credits and how alternative energy emissions over the next 40 years through a ties into houses and businesses. market-based trading system. The climate bills would foster the sale Why did you open an office in and swap of pollution permits under a “cap Plymouth? There is a great amount of and trade” system that would allow compa- interest in renewable energy in nies to emit only a certain amount of pollu- Southeast Michigan. We see market tion. Credits must be purchased to allow opportunities. There are many small more pollution. companies around, but they don’t The bills would direct have electrical engineers on staff. NSIDE I proceeds from those sales There also is work in Lansing we will tap into. We opened an office in MasTech: to encourage the develop- Catching the wind, Illinois two years ago and are doing ment of solar, wind and Page 12 quite well everywhere. biomass industries na- Chicago Carbon tionally and in Michigan. What are some of your latest business Exchange: A But business leaders deals? We were just awarded a cap-and-trade told Crain’s they want experiment, contract to put in small wind turbines several changes made in Page 12 and solar panels in schools in a pilot the climate bills ap- NATHAN SKID/CRAIN’S DETROIT BUSINESS Adaptive program through the Energy Works proved in the U.S. House Green energy is a theme at DTE Energy Co. headquarters in Detroit, where Skiles Boyd (left), vice Michigan program. Materials: Power president of environmental management and resources, and Irene Dimitry, director of renewable last June and in a U.S. cells fuel growth, energy, work on projects including a wind farm in the Thumb. See story, Page 11. Has your business grown since Page 13 Senate environment Michigan approved its renewable committee last Novem- Read and make improvements before it reaches the energy law in 2007 that requires comment on Jay ber before they throw WHAT IS ‘CAP AND TRADE’? utilities to generate 10 percent of its their entire support be- Senate floor.” Greene’s blog at At the heart of federal climate change It is expected that the Sen- electricity from renewable sources by www.crainsdetroit hind the measures. 2015? Yes, we have grown in revenue legislation is a “cap and trade” system ate will take up climate legis- .com/blogs That’s because the designed to set limits that would help to 50 percent each year. The legislation lation again this spring after changes also mean high- reduce the greenhouse gases that power really created a demand in Michigan. er costs for energy companies and end Congress finishes its health plants, refineries and other factories emit. care reform bill and other users; it’s just not clear exactly how much. Under the market-based trade system, What are the financial incentives for priorities, said U.S. Sen. Deb- people to invest in solar and wind “We took a position that the House bill companies would need an annual permit for moved things along, and we supported it every ton of greenhouse gas they release bie Stabenow, D-Lansing. technology? There are federal tax Stabenow is on three of the credits, DTE Energy financial because it made good progress, but it needs into the atmosphere. Facilities that don’t use all of their permits could trade or sell five Senate committees — en- incentives and 50 percent significant improvements before this bill them to companies that produce more ergy and natural resources, depreciation on the equipment. For would be good for our customers in Michi- pollution than their permits allow. finance and agriculture — Stabenow example, a typical 10,000-watt gan and the Midwest,” said Skiles Boyd, system, about $60,000 of the total DTE’s vice president of environmental that are also expected to develop climate legislation. $90,000 estimated cost would be management and resources. “Unfortunately, the Senate environment “For us, (the climate legislation) has paid for by tax credits and incentives. DTE wants emissions deadlines extend- committee took it in the wrong direction,” three pieces: Jobs, getting off foreign oil de- For more information on incentives, ed and more generous incentives for tap- Boyd said. “There are other committees in visit the Database of State Incentives ping alternative energy sources. the Senate that (have the opportunity) to See Climate, Page 10 for Renewables and Efficiency at www.dsireusa.org Why should businesses consider CLIMATE BILLS COMPARED purchasing solar or wind power? If they Here are differences between the U.S. House and Senate climate-change bills: look at the cost of their operations, they can save money with alternative Targets to reduce greenhouse gas sold through auction. technologies, including solar, their annual energy costs by $40. energy. They put in better windows to wind, biomass and thermal. save on heat. They can save money House: 17 percent below 2005 Prices for pollution permits Requires 20 percent of electricity Natural gas metric ton levels by 2020, on electricity with solar or wind. With House: Price “collars” set lower to be generated from renewable House: Hope is that carbon- 42 percent by 2030 and energy. financial incentives, the return on 83 percent by 2050. and upper price limits to give capture technology will evolve to investment has been cut to about five Senate: 20 percent below 2005 companies more investment Senate: Similar provisions on reduce coal emissions. No years from nine years. levels by 2020, 42 percent by predictability. Range is $11 per funding, but would require only incentives. 2030 and 83 percent by 2050. ton to $28 per ton. 15 percent renewable energy goal Senate: Incentives to increase Senate: Price ceiling higher over by 2021. natural-gas production and Pollution permits time compared with House. Range encourage coal-fired power plants If you know someone is $7 to $21 per ton in 2012, to switch to natural gas, which interesting in House: All but 15 percent would Consumer costs be free in the early years of the rising each year at 6 percent The Congressional Budget Office produces half the carbon dioxide health care, above inflation. of coal. insurance or the program, giving time for industry to estimated that by 2020, under environment Jay comply with the timetable. By Alternative energy incentives either package, the average Nuclear power should interview, 2026, most of the free permits American household would pay call (313) 446-0325 would be sold. House: Would make available $175 more a year in energy costs. House: No provisions. or write jgreene Senate: Some 75 percent would $30 billion, through pollution The poorest households would Senate: Funding to train nuclear @crain.com initially be free, with 25 percent permit sales, for clean-energy receive rebates that would lower workers. Sources: House Bill H.R. 2454, the American Clean Energy and Security Act of 2009; Senate Bill 1733, the Clean Energy Jobs and American Power Act 20100201-NEWS--0010-NAT-CCI-CD_-- 1/28/2010 3:44 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS February 1, 2010 Focus: Going Green Climate: Biz considers green bills ■ From Page 9 pendency and tackling global Owens said an alternative to cap warming,” Stabenow said. and trade is to expand nuclear “Creating jobs is my No. 1 prior- power and carbon-reducing clean- ity. … We won’t pass anything that coal technology. doesn’t have a strong job-creation There are varying estimates on component.” the increased energy costs that would be a byproduct of cap and trade. Higher costs Household cost increase esti- Many stakeholders are con- mates range from $7 to $15 per cerned that the climate bills will household per month, according to Kluge Hubbard raise energy costs for companies the U.S. Congressional Budget Office. that are already struggling. The conservative Heritage Founda- sitions on the bills. “We will be opposed to any cap- tion estimates $150 per month in With the U.S. Chamber of Com- and-trade mechanism in any bill,” higher energy costs based on the merce, the National Association of said Charles Owens, director of the belief that the legislation would Manufacturers and the National Fed- Lansing-based National Federation of greatly alter the price structure of eration of Independent Businesses Independent Businesses. “What you the industry. firmly opposing the bills, one small- are doing is creating an artificial But proponents argue the bills business group in Southeast Michi- market and forcing people to trade could create incentives that could gan is supporting the concept. on it to do business. The net effect is create 37,000 to 42,000 net jobs in The Warren-based Michigan Pro- increased energy costs that are Michigan and increase the state’s fessional Business Association sup- passed through the energy compa- net gross domestic product by ports the bills if changes are made nies and businesses to consumers.” $2 billion over the next 10 years. to give businesses cost breaks and That’s according to a study on the more time to reduce carbon emis- climate bills co-authored by the sions. University of Illinois. “While we support green prac- Mike Langford, tices and sus- president of the Utility tainability, we Workers Union of Ameri- We will be feel the govern- ca, said the bills will “ ment needs to create jobs in opposed to provide addi- manufacturing tional funds to to weatherize any cap- cover the out- and retrofit of-pocket costs homes and busi- and-trade to convert our nesses. The energy sources UWUA, which mechanism or extend the also represents deadline of the workers in the in any compliance to nuclear, coal, so- lower the im- lar and wind in- bill. pact on small dustries, is a Wash- ” business,” said ington, D.C.-based Charles Owens, National Federation Jennifer Kluge, affiliate of the AFL-CIO. of Independent Businesses COO of the “The House bill MPBA. needs to take on the look that it is The Detroit Regional Chamber op- about job creation to help move it poses the House bill but could sup- along,” Langford said. port final legislation if the finan- But U.S. Rep. Mike Rogers, R- cial impact on businesses is Howell, said regulation of green- reduced, said Sarah Hubbard, the house gases will raise energy prices chamber’s vice president of gov- and further ernment relations. crimp the “The business communi- state’s econo- This policy ty is aware of issues of cli- my, raising un- “ mate change and it affects employment will ... spur them from a further. Mark social respon- Neisler, global the startup of sibility stand- climate change point,” Hub- specialist with a whole lot of bard said. the Ann Arbor- “We are inter- based Michigan companies ested in the League of Con- debate, but we servation Voters, in aren’t inter- said energy ested in being costs will rise Michigan. involved in but argued job ” something that has a nega- creation is Mark Neisler, Michigan League tive economic impact to the worth it. of Conservation Voters (business) community.” “With any Mike Shriberg, policy change, there is a little pain up director with the Ecology Center, an front, and some energy prices will Ann Arbor-based environmental increase, but we need to look 15 to group, said once prices for green- 20 years down the road,” Neisler house emissions are set by cap and said. “This policy will create a bet- trade, the market incentives will ter environment and spur the change and the alternative energy startup of a whole lot of companies industry will grow. in Michigan.” “This is a battle between the Langford said Congress must act new economy and old economy, aggressively to create incentives with the old economy supported by for U.S. businesses to compete in- the Chamber,” Shriberg said. ternationally. “All the wind tur- bines at a Texas wind farm were produced in China,” Langford An incentive-based system said. “It could have been done in Many support a cap-and-trade Michigan. We will lose work and system because it limits overall jobs unless we do something.” Business groups have mixed po- See next page 20100201-NEWS--0011-NAT-CCI-CD_-- 1/28/2010 3:57 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 11 Focus: Going Green

From previous page emissions of heat-trapping gases while allowing utilities, manufacturers and other emitters to trade Wind farm project pollution permits, or allowances; the capitalist sys- tem survives. Bills in the House and Senate would cut green- house gas emissions by 17 percent to 20 percent over part of alt energy . 2005 levels during the next decade and by more than Go Green 80 percent by 2050. David Skole, a professor of global change science . in the forestry department at Michigan State Universi- compliance for DTE Green ty, said cap and trade is the best way to reduce the con- sequences of global warming due to greenhouse gases. Learn how you can reduce building “Cap and trade is far Utility official expects RSHUDWLQJFRVWVREWDLQ¿QDQFLQJ better than the old 1970s- IRUJUHHQUHWUR¿WVDQGLPSURYH Each year style command and con- your workplace at our “ trol approach of forcing economic boost, jobs they are allowed everyone to reduce Project Green Institute emissions by the same BY JAY GREENE in Ann Arbor or online at JSVig.com. amount,” Skole said. less (pollution), CRAIN’S DETROIT BUSINESS Skole said the Reagan so this gives administration first en- Detroit-based DTE Energy Co. is leasing thousands Contact Joe Vig to schedule a consultation. visioned a cap and trade of acres of farmland in Huron County to develop a them incentives [email protected] system as part of the large wind farm by 2012. 313.477.1060 1990 Clean Air Act to re- “It is our plan to comply with (2007) Michigan www.jsvig.com to develop new duce sulfur emissions. (renewable energy) legislation and build a portfo- “Each year they are lio of 1,200 megawatts,” said Irene Dimitry, DTE’s technology. allowed less, so this director of renewable energy. “We are doing stud- ” gives them incentives to ies to determine the best David Skole, develop new technolo- spots” for high winds Michigan State University gy,” Skole said. and low environmental We have to Boyd said DTE needs more time to develop clean impacts. “ energy technologies. Half of the 1,200 competitively DTE wants Congress reduce greenhouse gas level megawatts, which can targets from 17 percent or 20 percent to no more than power about 400,000 bid, but it is 14 percent by 2020, he said. homes, will come from “At higher levels, there isn’t a lot we can do in that the DTE wind farms and our hope and coffee!! time frame. We would have to purchase credits, and the other half will come that would increase the cost of business,” Boyd said. from third-party devel- desire that we The only way DTE and other utility companies opers that will sell DTE opportunity!! could reduce emissions would be to use more natural their electricity, Dimit- can support gas to generate electricity, Boyd said. ry said. “Reducing supply of gas would increase prices of Wind turbines pro- the local interested?? heating fuel for consumers,” he said. duce about 30 percent of DTE wants the bills to extend the deadlines and cre- the capacity of tradition- folks. ate more generous offsets that would give them more al plants, primarily be- ” franchise?? credit for alternative energy generation. cause wind speeds vary. Irene Dimitry, Stabenow said she has introduced an amendment DTE plans to begin DTE Energy Co. that would expand the types of carbon offsets to give purchasing wind tur- electrical utilities more flexibility in meeting emis- bines this year and have them generating power Contact us at sions targets. in 2012. (517) 913-1987 or A carbon offset can be anything that reduces the The DTE-owned wind farm in Michigan’s amount of greenhouse gas emissions. It can include Thumb area will include about 280, 2-megawatt [email protected] planting trees or reducing farmland erosion. Skole wind turbines. Until Michigan develops a wind- said both bills require the Environmental Protection turbine manufacturing capability, DTE will pur- Agency and the U.S. Department of Agriculture to create a chase the equipment elsewhere, Dimitry said. protocol that measures offsets. DTE also has been counting on two pilot solar www.biggby.com Another issue that concerns DTE and other heavy projects to increase its renewable energy capaci- greenhouse-gas emitters is the danger that the prices ty, reduce fossil-fuel dependency and cut green- of carbon permits could escalate over time due to house gas emissions, such as carbon dioxide. trade speculators. In September, DTE began its SolarCurrents pro- Stabenow said it is important for Congress to set a gram, which provides financial assistance for cus- lower and upper limit on the price of pollution permits. tomers to buy solar-power systems and pays them Under the House proposal, companies that generate for energy produced. DTE pays for about 50 percent greenhouse gases above target levels would be re- of the costs of the renewable power systems. quired to pay a $13-per-ton tax on emissions. “We have 125 applicants with about 17 going Stabenow said funding for the renewable-energy through the whole process,” said Dimitry, adding projects will come from the sale of pollution permits. that 80 percent are homeowners. “Because of per- “The House bill uses proceeds from the sale of the mitting and zoning, you will see smaller turbines allowances to be put into different pots,” Skole said. in the metro Detroit area.” “Some of the money will go back to industry to invest Another solar project, which hasn’t been in renewable fuels, and some will go to businesses and launched, calls for DTE to work with its larger Got consumers to offset costs of higher energy.” business customers, including Ford Motor Co., to John Viera, Ford’s director of sustainable business develop larger solar-power projects. strategies, said Ford is concerned with provisions in Dimitry said renewable energy creation will the House bill that would require automakers to build boost the economy and add jobs. Ethos? a majority of their vehicles to run on a blend of gaso- “We hope there will be suppliers that will con- line, ethanol and methanol. tribute to the construction, and the local trades, elec- “We prefer a more general requirement that gives tricians and riggers will become involved,” Dimitry 4th Annual us flexibility and time to comply,” Viera said. said. “We have to competitively bid, but it is our EMU Ethos Week Ford also is a member of the three-year-old U.S. Cli- hope and desire that we can support the local folks.” mate Action Partnership that is promoting the idea that Jay Greene: (313) 446-0325, [email protected] March 15-19 climate legislation is needed. Other members include Capstone Lunch March 19: General Motors Co., General Electric and oil companies I EMU Student Center such as Shell and British Petroleum. “It is difficult as a business to invest and operate I $35 general public effectively when you have a variety of rules,” he “We are not concerned about the timetable on car- I $5 EMU students bon reduction, because we are well on our way to re- said. duce greenhouse emissions by 30 percent under 2006 Stabenow said the Obama administration will in- baseline,” Viera said. struct the EPA to set rules if Congress fails to act. Boyd hopes Congress will approve a bill this sum- mer. For ticket information, Alternative enforcement “It is difficult to set up a market-based system Keynote Speaker, Robert Bobb, Emergency Financial Manager, call 734.487.4140 or visit cob.emich.edu Viera said Ford prefers that Congress adopt a bill without Congress acting.” Detroit Public Schools rather than for states or the EPA to develop policies. Jay Greene: (313) 446-0325, [email protected] 20100201-NEWS--0012-NAT-CCI-CD_-- 1/28/2010 4:36 PM Page 1

Page 12 CRAIN’S DETROIT February 1, 2010 Tax Experience Focus: Going Green In Your Corner. MasTech expects to triple its residential wind turbine output

BY JAY GREENE But the downturn in the auto- CRAIN’S DETROIT BUSINESS mobile industry and an eye toward We could expand the future led MasTech to develop MasTech Inc., a Sterling Heights- “ an alternative-energy divi- based manufacturer of automotive our 20,000- sion, Holcomb said. equipment, has been growing with Two years ago, MasTech gusts of new business over the past square-foot operated a $10 million annu- year. al business, Holcomb said. Transformed in April 2009 from plant in “We are slowly coming a manufacturer of automotive ma- back, but we won’t be where terial-handling equipment, Mas- Sterling we were until next year,” Tech now operates a division that Holcomb said. builds small wind turbines for Heights. Last year, MasTech also homes and businesses at its plant ” signed a contract with Fre- in Manistee, said John Holcomb, John Holcomb, mont, Calif.-based Greenvolts to de- general manager of MasTech MasTech Wind velop two prototype wind turbine Wind. generators that will produce 50 MasTech Wind recently signed a megawatts and 100 megawatts of six-year supplier contract with power, Holcomb said. Reno, Nev.-based Mariah Power to Varnum Attorney “We expect to build 92 and be- Eric Nemeth manufacture the Windspire, a 30- yond that go up to 6,000 units by [email protected] foot-tall wind power plant for 2013,” he said. homes. MasTech also is negotiating The Windspire turbine produces with Greenvolts on a “tracker” about 2,000 kilowatt-hours of energy system that will move Greenvolts’ per year, which is about 20 percent giant commercial solar power pan- to 33 percent of the annual energy els to face . consumption of most U.S. homes. The contract could amount to “We have been building 65 to 100 $50 million in annual revenue, wind turbines per month, and we Holcomb said. expect by the middle of next year 866-4VARNUM www.varnumlaw.com “We will grow way beyond 300 to produce 250 to 300 per month, employees if we get this contract,” I I I I I Novi (Metro Detroit) Grand Rapids Kalamazoo Grand Haven Lansing which is the capacity of our plant,” he said. Holcomb said. Holcomb said the company ex- The demand for small wind tur- pects to grow at a faster rate if Con- bines nationally and in Michigan gress approves climate change leg- is expected to allow 46-employee COURTESY OF MASTECH INC. islation. MasTech Wind to hire another 250 MasTech Inc. says a six-year contract “It will triple our business,” he or more workers over the next five to manufacture the Windspire said. “There will be a little surge years, Holcomb said. residential turbine promises to expand immediately when the bill is ap- operations of MasTech Wind. 800-292-3831 “We could expand our 20,000- proved, and then there will be a square-foot plant in Sterling long and steady growth because indiantrails.com Heights,” Holcomb said. Of the 46 make robotic units and assembly we will need to build the infra- employees, 16 are based in Sterling systems for manufacturers and structure to increase production.” Heights. stacking columns for parts storage Jay Greene: (313) 446-0325, MasTech was founded in 1991 to and transportation. [email protected]

ONE HU G ND IN R T E A D R Y B E CRAIN’S CALLS FOR

E A

L R

E S C 100 Program participants: ‘UNDER 40’ NOMINATIONS Crain’s Detroit Business is seeking nominations for the 2010 class of Cap and trade can work 40 under 40, which To prepare for federal climate proach is effective because it al- recognizes change legislation and prove that a lows flexibility to emitters to in- young cap-and-trade program works, DTE vest in emission reductions or pur- achievers Energy Co., Ford Motor Co. and Michi- chase excess allowances, or based on gan State University are participating offsets,” said David Skole, a profes- factors such as in the Chicago Carbon Exchange, a sor of global change science in financial impact voluntary cap-and-trade program to MSU’s forestry department. and civic and community reduce greenhouse gases. MSU has a co-generation power leadership. “We think a bill will be ap- plant that emits 600,000 tons of Winners will be proved; and this is not only help- greenhouse gasses annually, Skole profiled in the Comfort and ing us to be prepared, but it is also said. Oct. 4 issue, and Crain’s will setting us on a greenhouse gas re- “We have reduced that amount celebrate their achievements at duction path,” said Skiles Boyd, by 12 percent in four years. We are an Oct. 28 awards event. t$IBSUFST DTE’s vice president of environ- on the right path,” Skole said. To be eligible, nominees must Luxury mental management. Overall, nearly two dozen carbon be under age 40 as of Oct. 4. t5PVST Other Michigan companies in exchange members have agreed to For sponsorship opportunities, the Chicago-based carbon ex- reduce greenhouse gas emissions please call (313) 446-6052. t4IVUUMFT change program include Dow Corn- to 4 percent below 2001 levels. Nominations must be received 00 ing Corp. in Midland and Steelcase Companies that can’t meet those by April 5. Visit Inc. in Grand Rapids. Other partic- guidelines purchase credits from www.crainsdetroit.com t$POWFOUJPO4FSWJDFT $100 OFF SAVE ipating companies with offices in those who have reduced their /nominate to fill out the online Michigan include DuPont, Interna- emissions. form. Questions? Contact t$PSQPSBUF&WFOUT Jennette Smith, assistant tional Paper Co., Eastman Kodak Co. “It is working very well. We managing editor, at Contact Indian Trails for details. Must use this and Rolls-Royce. have proven that a cap-and-trade t4DIFEVMFE4FSWJDF promotional code at time of booking: CDB52feb [email protected] or (313) “The Chicago Carbon Exchange system works,” Skole said. 446-1622. has proven that a market-based ap- — Jay Greene 20100201-NEWS--0013-NAT-CCI-CD_-- 1/28/2010 4:46 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 13 Focus: Going Green

Portable power cells fuel People you trust for results Adaptive Materials’ growth that matter

BY JAY GREENE CRAIN’S DETROIT BUSINESS Rely on Jones Lang LaSalle for advice to get the Sometimes a soldier needs to most from your real estate portfolio. charge. Adaptive Materials, an Ann Ar- bor-based alternative energy com- Our team of experts moves quickly with financial pany, is providing soldiers in the and professional services that meet your real field with extra charges in the estate needs. form of portable power fuel cells. Since 2000, Adaptive Materials has been selling flexible solid ox- ide fuel cells — that generate 25-250 watts of power — to the U.S. mili- James C. Becker Ronald J. Gantner, CPA tary and manufacturers of recre- Market Director Executive Vice President ational vehicles among others, + 1 313 967 4100 + 1 313 967 4105 said Michelle Crumm, its chief business officer. While not batteries, the fuel www.us.joneslanglasalle.com/detroit cells generate enough power to op- NATHAN SKID/CRAIN’S DETROIT BUSINESS © 2010 Jones Lang LaSalle IP, Inc. All rights reserved. erate a laptop, cell phone, surveil- Aaron and Michelle Crumm sell fuel cells from their company, Adaptive lance equipment or auxiliary pow- Materials, to the U.S. military. They say the commercial market is next. er on a recreational vehicle. The fuel systems use propane, butane “These bills could provide the and liquid-petroleum gas as a pow- These (climate) right incentives for people to er source. “ change their purchasing habits, “Our products fit a nice space bills could provide and it is a good way for govern- between AA batteries and a gener- ment to get involved and force ator,” said Crumm, who was a the right incentives changes for the better,” Crumm Crain’s Most Influential Women in said. “The incentives help con- 2007. She co-founded the company for people to change sumers purchase energy-saving with her husband, Aaron, who is products, and also offsets part of president. their purchasing the costs for businesses to invest In 2009, Adaptive Materials, in technology.” which employs 57, had revenue of habits. Additional funding especially $8 million. It has doubled in size ” helps smaller companies compete every year except last year, when Michelle Crumm, with multinational companies the economy flattened growth. Adaptive Materials such as General Electric Co. and Hon- “We already have enough con- eywell, Crumm said. tracts this year for about 50 per- “We have more market pull with “Our only advantage as a small cent growth,” Crumm said. “The RVs now,” she said. “Before, they company is speed,” she said. “We product is more mature and far- didn’t want to make changes, but will still grow and move our prod- ther along in the development now they are seeing the value (in uct forward; but when we do get path.” fuel cells).” the incentives, we have the path In December, Adaptive Materi- But Crumm said if Congress ap- and plans to move forward even als won a $3 million contract to proves a climate-change bill this faster.” provide 60-watt fuel cell systems to year, which contains billions of Over the years, Adaptive Mate- the U.S. Air Force. It also recently dollars of financial incentives and rials has attracted more than introduced a 250-watt fuel cell that tax credits for alternative energy $34 million in state and private in- can be used in RVs. business development, Michigan’s vestments. Crumm said the commercial alternative energy industry could Jay Greene: (313) 446-0325, market with RVs is set to open up. receive a big boost. [email protected]

BRIEFLY CRAIN’S SEEKS Southwest Solutions-led group and those with criminal records for TOP LEGAL VERDICTS jobs in green industries. Crain’s Detroit Business gets $4M in green jobs grants — Sherri Welch is compiling a report on The U.S. Department of Labor awarded big litigation from 2009 for the March 1 edition. a consortium led by Southwest Housing Green Gym called first for homeless Solutions in Detroit a $4 million grant to Editors and reporters will choose cases train 360 disadvantaged people for Cass Community Social Services has representing prominent green jobs over the next two years. opened what it says is the nation’s and important work The award is part of the $150 mil- first gym for homeless men, women performed by Southeast lion “Pathways Out of Poverty” pro- and children. The gym will include Michigan lawyers. gram authorized by the American Re- stationary bicycles that will generate Big money, big names and covery and Reinvestment Act of 2009. electricity to be directed into Cass local impact play a role in The Southwest Detroit Consortium for Community Social Services’ power the decision of which Green Jobs includes 10 other organiza- grid. cases show up on our list. tions: Ampro Construction, Detroit Work- Other equipment at the gym, locat- The report can also force Development, DTE Energy Co., Green- ed inside Cass’ warehouse on include significant ing of Detroit, Henry Ford Community Woodrow Wilson in Detroit, includes verdicts that were averted College, Michigan Laborers Training and two weight machines, boxing bags or reversed. Apprenticeship Institute, O’Brien Construc- and a treadmill. Please visit tion, Warm Training Center, United Auto Initially, access to the Green Gym will www.crainsdetroit.com Workers Local 600 and Urban Farming. be limited to the 240 men, women and /nominate for the link to the online form to Southwest and its partners will use children who live in Cass’ facilities, its nominate cases. the funding to train unemployed peo- 100 employees and volunteers. The deadline is Feb. 10. ple, high school dropouts, veterans — Sherri Welch 20100201-NEWS--0014-NAT-CCI-CD_-- 1/28/2010 5:04 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS February 1, 2010

SPOTLIGHT ON DETROIT’S TOP EMPLOYERS

Here are employee numbers through the years* of Detroit’s current top Detroit Public Schools City of Detroit Detroit Medical Center employers: Detroit Public Schools, the city of Detroit and Detroit Medical Center. In 1990, Chrysler Corp. was Detroit’s top employer, with 18,800 employees in the city. Crain's estimates Chrysler Group L.L.C. now has 4,150 workers in Detroit. *Crain’s began tracking Detroit’s largest 18,704 21,059 18,639 13,039 16,545 17,831 17,151 12,472 10,260 12,757 12,653 10,617 10,502 employers in 1989; 1995 was the first year of collecting data on city and DPS employees. 1995 2000 2005 2010 1995 2000 2005 2010 1990 1995 2000 2005 2010 CRAIN'S LIST: DETROIT'S LARGEST EMPLOYERS Ranked by full-time employees January 2010

Company Full-time employees in Full-time employees in Address Top local the city of Detroit Jan. the city of Detroit Jan. Michigan employees Jan. Worldwide employees Rank Phone; Web site executive 2010 2009 2010 Jan. 2010 Type of business Detroit Public Schools Teresa Gueyser 13,039 13,750 13,039 13,039 Public school system 1. 3011 W. Grand Blvd. Fisher Building, Detroit 48202 acting superintendent (313) 873-3111; www.detroitk12.org

City of Detroit 12,472 13,187 12,472 12,472 City government 2. 2 Woodward Ave. mayor Coleman A. Young Municipal Center, Detroit 48226 (313) 224-3700; www.ci.detroit.mi.us Detroit Medical Center Michael Duggan 10,502 10,479 11,820 11,820 Health care system 3. 3990 John R, Detroit 48201 president and CEO (313) 745-1250; www.dmc.org

Henry Ford Health System Nancy Schlichting 8,289 8,502 18,473 18,473 Health care system 4. 1 Ford Place, Detroit 48202 president and CEO (800) 436-7936; www.henryford.com

U.S. government NA 6,880 B 6,335 C NA NA Federal government 5. 477 Michigan Ave., Detroit 48226 (800) 688-9889

Wayne State University Jay Noren 5,152 5,019 5,152 5,152 Public university 6. 42 W. Warren, Detroit 48202 president and CEO (313) 577-3577; www.wayne.edu

State of Michigan Jennifer Granholm 4,740 D 4,910 D NA NA State government 7. Cadillac Place, Detroit 48202 governor (313) 456-4400; www.michigan.gov

Chrysler Group L.L.C. Sergio Marchionne 4,150 D 4,517 19,423 NA Automobile manufacturer 8. 1000 Chrysler Drive, Auburn Hills 48326 CEO (248) 576-5741; www.chryslerllc.com

U.S. Postal Service Nancy Rettinhouse 3,987 4,106 NA NA Postal service 9. 1401 W. Fort St., Detroit 48233-9998 district manager (313) 226-8607; www.usps.gov

St. John Health System Patricia Maryland 3,884 3,818 12,995 12,995 Health care system 10. 28000 Dequindre Road, Warren 48092 president and CEO (866) 501-3627; www.stjohn.org

General Motors Co. Ed Whitacre Jr. 3,740 4,652 E 41,828 215,000 Automobile manufacturer 11. 300 Renaissance Center, Detroit 48265 chairman and CEO (313) 556-5000; www.gm.com

DTE Energy Co. Anthony Earley Jr. 3,668 3,771 9,577 10,292 Energy and energy-technology 12. 1 Energy Plaza, Detroit 48226 CEO and chairman company (313) 235-4000; www.dteenergy.com

Wayne County Government Robert Ficano 3,409 3,674 4,147 4,147 County government 13. 500 Griswold Ave., Detroit 48226 county executive (313) 224-3930; www.waynecounty.com

MGM Grand Detroit Casino & Hotel Lorenzo Creighton 3,000 3,000 3,000 3,000 Entertainment 14. 1777 Third Ave., Detroit 48226 COO and president (313) 465-1777; www.mgmgranddetroit.com

Blue Cross Blue Shield of Michigan/ Daniel Loepp 2,457 3,082 6,992 6,992 Health care insurer 15. Blue Care Network president and CEO 600 E. Lafayette Blvd., Detroit 48226 (313) 225-9000; www.bcbsm.com MotorCity Casino Marian Ilitch 2,087 2,424 2,087 NA Casino, hotel, dining and 16. 2901 Grand River Ave., Detroit 48201 owner theater (877) 777-0711; www.motorcitycasino.com

Compuware Corp. Peter Karmanos Jr. 1,940 2,597 1,982 4,412 Software developer and 17. 1 Campus Martius, Detroit 48226 chairman and CEO provider of professional (313) 227-7300; www.compuware.com services

Greektown Casino-Hotel Clifford Vallier 1,793 1,800 1,793 1,793 Casino 18. 555 E. Lafayette Blvd., Detroit 48226 CEO (888) 771-4386; www.greektowncasino.com

Comerica Bank Thomas Ogden 1,552 1,706 5,526 8,940 Financial services provider 19. 500 Woodward Ave., Detroit 48226 Michigan market president (248) 371-5000; www.comerica.com

Deloitte L.L.P. Joe Angileri 903 983 1,052 169,000 Accounting and consulting 20. 600 Renaissance Center, Suite 900, Detroit 48243 managing partner, Michigan professional services firm (313) 396-3000; www.us.deloitte.com practice

This list of Detroit employers encompasses the cities of Detroit, Hamtramck and Highland Park. Employers with headquarters in Washtenaw, Oakland, Wayne, Macomb or Livingston counties are listed with their headquarter's address and top executive. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA = not available B As of September 2009. C As of September 2008. D Crain's estimate. E As of August 2008. LIST RESEARCHED BY ANNE MARKS 20100201-NEWS--0015-NAT-CCI-CD_-- 1/28/2010 3:43 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 15

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

PEOPLE EMPLOYMENT CALENDAR ARCHITECTURE InvestWise Financial L.L.C., Bloom- Web training classes offered ders, Wednesday and Thursday. IN THE SPOTLIGHT field Hills, from regional manager of Ⅲ Blogging 101, Feb. 10, 11 401(k) sales, Freedom One Financial Trademark Productions is offer- Ⅲ Internet Marketing 101, Feb. Birmingham-based Liberty Capital Group L.L.C., Clarkston. ing free Web training classes on has named 17, 18 Management Ina Donald Clayton, managing director, Wednesdays, 6-9 p.m., or Thurs- Fernandez to Clayton & McKervey P.C., Southfield, Ⅲ Web Development 101, Feb. the newly days, 3-6 p.m., in February at its appointed to board of directors, PFK offices at 316½ S. Main St., Royal 24, 25 created North America, Lawrenceville, Ga. position of Oak. To register and for more infor- Don Bolton to ex- mation, go to www.tmwebschool managing ecutive vice presi- The schedule: director. She is dent of lending for Ⅲ Preventing Website Blun- .com or call (248) 582-9210. responsible for Clarkston State asset Bank, Clarkston Jacobson Perkins management Financial Corp., Steve Jacobson to and growth in Waterford Town- principal and foundation and ship, from senior CareerTransition shareholder, HKS endowment vice president of Architects P.C., Fernandez assets. lending. Name: Karen Kogan Rosenzweig, 44. Northville, from Education: Bachelor’s degree in fashion mer- associate princi- Fernandez, 58, was most recently a senior investment manager at HEALTH CARE chandising and marketing from the University pal and senior Bolton vice president; Munder Capital Management in William Dennis to of Arizona in 1988 and law degree from Detroit also, Brian Birmingham. She has more than CFO and treasurer, United American College of Law in 1991. She’s a member of the Perkins to vice 20 years of investment experience Healthcare Corp., Detroit, from vice Michigan and Florida bar. president of financing and accounting, president and de- and is a recognized specialist in Last career: Attorney for 10 years in a juve- managing socially responsible Toyota Boshoku America Inc., Novi. sign director, nile and adult criminal law private practice. Thompson from design direc- investments. She also spent more than seven years with a lo- tor, ; and Michael Thomp- She earned a bachelor of science LAW son to associate, from project manag- cal firm representing insurance companies degree from the University of Joshua Fink to principal, Pear Sper- er. throughout the United States. Bombay and an MBA at what is ling Eggan & Daniels P.C., Ann Arbor, now University of Detroit Mercy. remaining attorney. New career: Creator of That’s All L.L.C., a greet- CONSULTING Karen Kogan ing card company whose mission is to cure Ben Chen to prin- director of The SERVICES Rosenzweig ovarian cancer while laughing out loud. Its cipal, Midwestern Panthera Project, Former career: Web site is www.thatsallgreetings.com. Rosen- Walsh College, Chad Epstein to operations manager, Consulting L.L.C., Attorney zweig also is a monthly columnist for My Metro Troy, from presi- Great Lakes Electronics Corp., War- Ann Arbor, re- You Magazine. maining manag- dent, Silvertree ren, from agent, GLP Insurance Ser- New career: Fin Founder of a er, Midwestern Marketing L.C., vices L.L.C., Farmington Hills. Why she decided to change careers: “My sister Software Solu- Beverly Hills. greeting card was diagnosed with ovarian cancer in October Nathan Conway to COO, Ward Willis- company tions L.L.C., Ann ton Oil Co., Bloomfield Hills, from cor- 2008. I spent a lot of time sleeping on the couch Arbor. FINANCE porate development manager. in her hospital room, and at night we would Ken Krausman to Michael Loria to president, Re.Source make up funny verses ending with ‘That’s all.’ EDUCATION vice president of Partners Asset Management, Clinton In January 2009, I lost my job as an attorney Lange Michelle Lange to qualified plans, Krausman Township, from vice president. and immediately started the company the next day. We were in stores two months later. We are now in 69 stores in 21 states and have been in business for 10 months. I’ve always been funny, and I wanted to express my creativity. I figured out a way to do this and donate a por- CAREER MOVES tion of all proceeds to a cause I care very much about.” FINANCE GENERAL How she made the transition: “I knew it was Call Us For Personalized time to move on, and when I lost my job as an CEO Wanted for Credit Card Processing Company Service: (313) 446-6068 Seeking experienced professional with attorney and my immediate response was that strong market and operational knowledge. it was a blessing. I was so happy to leave and be CLOSING TIMES: Monday 3 p.m., [email protected] able to create my own business. I learned the one week prior to publication date. business through the Internet, books and a Please call us for holiday closing times. longtime friend who owned a large stationery- Call or email today for information printing facility in Los Angeles. I also hired an FAX: (313) 446-1757 on a custom advertising plan! adviser from California who has been in the E-MAIL: [email protected] greeting card-gift industry for over 35 years. INTERNET: My family supported me 100 percent and be- www.crainsdetroit.com/section/classifieds [email protected] AGD lieved in my product … and of course, the Confidential Reply Boxes Available cause.” 313.446.6068 Obstacles overcome: “It’s been trial and error PAYMENT: All classified ads must be since the beginning. My neighbors and friends prepaid. Checks, money order or participated in focus groups, and every time Crain’s credit approval accepted. they laughed I knew I had a winner. I had to Credit cards accepted. prepare myself for possible rejection. I would See often wonder if people from all over the nation Crainsdetroit.com/Section/Classifieds would think the cards were as funny as I did. I also wanted to support our community, so I for more classified advertisements created a Michigan business, use a Michigan printing company and write for a local maga- zine.” Advice for others: “I bought a greeting card that said, ‘What would you attempt to do if you knew you could not fail?’ I bought eight of them, framed them, and put them all over my house and office. It gave me courage and made sense. If you’re truly working at something you love, enjoy, and believe in, the money will come without thinking about it.” If you have made a similar change in your ca- reer, or know someone who has made an inter- esting career transition, contact Andy Chapelle, managing editor at Crain’s Detroit Business, at [email protected] 20100201-NEWS--0016-NAT-CCI-CD_-- 1/28/2010 4:29 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS February 1, 2010

BUSINESS DIARY CALENDAR

CONTRACTS Commerce Township-based TUESDAY EARN FROM THE EST Lawrence Technological University, Rampboss-USA has released a FEB. 2 L B - Southfield, is expanding its collabora- new V3 display tive relationship with Shanghai Univer- platform Beyond Health Care Reform. 11:30 MANAGED NONPROFIT sity for Engineering Science. The uni- capable of a.m.-1:30 p.m. Inforum. With Jeff Gold- Crain’s Detroit Business, DTE versities have signed a preliminary holding smith, president, HealthFutures; Dr. Energy Foundation and Lawrence agreement to begin collaborating in vehicles Patricia Maryland, president and Technological University present graphics and imaging, interior design weighing CEO, St. John Health System; Nancy the sixth annual Best Practices Schlichting, president and CEO, Hen- and transportation design, three pro- up to from the Best-Managed Nonprofits ry Ford Health System; others. Ritz- grams in Lawrence Tech’s College of 12,000 Seminar March 8 in the Buell Architecture and Design. LTU also has Carlton, Dearborn. $45 Inforum mem- pounds and bers, $60 nonmembers. Contact: (313) Management Building on the LTU signed a preliminary agreement with with a campus in Southfield. Soochow University, Taipei, Taiwan, 578-3230; Web site: www.inforum wheelbase of up to michigan.org. The seminar begins at 2 p.m. and which has just established an architec- PHOTO COURTESY RAMPBOSS-USA 156 inches. Web site: ture school. includes a presentation by James www.rampbossusa.com Nicholson, president and CEO of The U.S. Army TACOM Life Cycle Man- PVS Chemicals Inc. Also appearing agement Command, Warren, has cases on all four-wheel Hobbs and Black Associates Inc., WEDNESDAY will be Rich awarded General Dynamics Land Sys- Ann Arbor, has been selected by Mid drive Ram trucks. FEB. 3 Homberg, tems, Sterling Heights, a business unit Michigan Community College, Mt. president and of General Dynamics, Falls Church, MidWest Transit Equip- Pleasant, to design a proposed expan- Should I Start My Own Business? 8:30- general Va., a contract to build 140 M1A1 Situa- ment, Kankakee, Ill., has been awarded sion to the MMCC Doan Center. a contract with Terre Haute Transit, 11 a.m. Service Corps of Retired Exec- manager of tional Awareness tanks for Iraq. Spring Design Inc., Fremont, Calif., Terre Haute, Ind., for two Azure utives Detroit. Learn what it takes to Detroit Public GlobalHue, Southfield, a marketing and Borders Group Inc., Ann Arbor, CitiBus vehicles by Azure Dynamics start and manage a business, why Television, and communications agency is the new have signed an agreement in princi- some businesses fail while others suc- Corp., Oak Park. members of agency of record for the Jeep brand, ple to feature the upcoming Borders ceed and what personal skills are re- the Detroit for Chrysler L.L.C., Auburn Hills. Ford Motor Co., Dearborn, selected eBook store powered by Kobo on the quired to start a business. Southfield Public BorgWarner Inc., Auburn Hills, has BorgWarner Inc., Auburn Hills, to pro- new dual display Alex eReader later Public Library. $10. Contact: (313) 226- Television been selected by Chrysler Group L.L.C., vide its gasoline turbocharger tech- this year. 7947; e-mail: [email protected]; board. DPTV Auburn Hills, to supply its Torque- nology for the company’s new four- Web site: www.scoredetroit.org. Homberg won the On-Demand and Part-Time transfer cylinder EcoBoost engine. EXPANSIONS Crain’s Best-Managed Nonprofit IHA, Ann Arbor, has opened a new Award in 2009. noninvasive cardiology service, IHA A networking reception featuring Cardiology Consultants, in IHA’s Mi- THURSDAY prominent nonprofit board leaders lan Medical Center. Web site: FEB. 4 follows at 5 p.m. www.ihacares.com. Registration is $45 for the seminar MARKET PLACE Educational Data Systems Inc., Dear- The State of the Economy and Auto In- born, a workforce development com- dustry. 8-9:30 a.m. Adcraft Club of De- and the reception, $30 for the pany has opened a new office in troit. With Phil LeBeau, CNBC auto seminar (including a snack) and BUSINESS & Call Us For Personalized Raleigh, N.C. Web site: www.eds and airline industry reporter. $20 for the networking reception INVESTMENTS Service: (313) 446-6068 isolutions.com. Townsend Hotel, Birmingham. $28 (including wine and appetizers). FAX: (313) 446-1757 Continental Services, Sterling Heights, members, $40 nonmembers, $25 ju- Online registration with a credit card BUSINESS OPPORTUNITIES E-MAIL: [email protected] has formed a new business unit, Conti- nior members (under age 25), $20 stu- is available at www.esc-detroit.org. INTERNET: nental Catering and Events, which will dents (with student ID). Contact: (313) More information is available at NDT Inspection Co www.crainsdetroit.com/section/classifieds . wishes to purchase/merge/or provide event planning and catering 872-7850; Web site: www.adcraft.org. (248) 395-2840, ext. 25, or at partner with radiography, ultrasonics, eddy current or See services throughout Southeast Michi- [email protected]. other testing services. Possess’ OEM, NADCAP Crainsdetroit.com/Section/Classifieds certifications. Objective, expand acceleration of gan. Web site: www.continentalca- for more classified advertisements growth. Harold (248) 362-8146 teringevents.com. ners, and successful community lead- Trademark Productions, Royal Oak, COMING EVENTS ers. With Carol Cain, senior producer has launched TM Web School, which Maverick Marketing Mondays. Noon- and host “Michigan Matters,” as mod- will offer training in all areas of Web 1:30 p.m. Feb. 8. Detroit Chamber. erator. Metropolitan Inn, Troy. $30 ad- development and online marketing With John Lichtenberg, chief market- mission and dinner, $60 admission, REAL ESTATE for small-business owners. Web site: one dinner ticket and exhibit table. ing officer, Walsh College. Detroit Zoo www.tmwebschool.com. Ford Education Center, Royal Oak. Contact: (313) 961-4748; Web site: $20 chamber members Business www.nawbogdc.com. COMMERCIAL PROPERTIES INVESTMENT PROPERTY Bright Side Dental, Sterling Heights, will open an office in Royal Oak in Builder and above, $30 Basic mem- bers, $40 nonmembers. Contact: (313) Property 20 cents on the dollar March 2010. Web site: www.bright Industry Cocktails. 4:30-6 p.m. Feb. 11. AUTO RELATED USES sidedental.com 596-0392; e-mail: kgaines@ Detroit Chamber. Attendees em- • Fast food site on I-94, south of 21 Mile, detroitchamber.com; Web site: ployed in the creative, PR, marketing — Canton on Michigan Ave. previously auto easy off/on, $550,000,1.25 acres. MOVES www.detroitchamber.com. and sales industries will have the op- • Waterford, 50,000 sq ft bldg, $8 sq ft, 4% portunity to network with peers and sales. For sale or lease. Counseling Associates, an outpatient financing. $2,425/month with $20,000 down. build stronger business relationships. — Dearborn Heights on busy Telegraph S. of mental health clinic, from Farming- Livingston Economic Club Luncheon Se- • Condo lots, Chesterfield, try $2,000 (120) Westin Southfield. Free for chamber ton Hills to 6960 Orchard Lake Road, ries. 11:30 a.m.-1 p.m. Feb. 9. With Carl Ford Rd. 3 bays. For sale or lease. • Mac/Ray front row condo with enclosed members Business Builder and Suite 100, West Bloomfield Township. Camden, president and CEO, Kelly Ser- — Garden City 31450 Ford Rd. 8,000 sq. ft. for heated 80’ slip, $290,000. above. Contact: (313) 596-0392; e-mail: Telephone: (248) 626-1500. Web site: vices Inc. Tickets must be purchased by [email protected]; Web sale or lease. Bill McMachen -- [email protected] www.counselingassociates.com. Feb. 5. Cleary University, Howell. $60. — Monroe - Former Ford Dealership 3 licenses 586-915-4441 Contact: (517) 548-3670, ext. 5505; e-mail: site: www.detroitchamber.com. Lee & Associates inc. dismantler/salvage. [email protected]; Web site: www.living NEW PRODUCTS stoneconomicclub.org. — Plymouth - $164,900. Repair or sales. State of the Industry Section Meeting. OFFICE BUILDING GuidePoint Systems, Madison 5:30-8:30 p.m. Feb. 16. SAE Detroit 1,980 sq. ft. Heights, has launched a new track- section. With Dr. David Cole, chair- St. Clair Shores Beauty Salon for Sale ing, safety and convenience applica- Crain’s 2009 Newsmakers of the Year. — Roseville - 29905 Little Mack, 3,682 sq. ft. Crain’s De- man, Center for Automotive Re- On Jefferson, near 12 Mile Road tion for users of Apple’s iPhone. Web Noon-1:30 p.m. Feb. 10. 40 car fenced lot in back $285,000, or lease troit Business search; Neil De Koker, president and Beautiful beauty salon and investment property site: www.guidepointsystems.com. will honor its 2009 $1,400 /mo. Excellent Price -- LaHood Realty 313.885.5950 Newsmakers of the Year: Detroit CEO, Original Equipment Suppliers Xcend Group, Brighton, has launched Mayor Dave Bing and Robert Bobb, Association; John McElroy, host of Call Van Esley Real Estate for details WAREHOUSE STORAGE SPACE MetriX Real-Time Dashboard, a emergency financial manager of De- “Autoline Detroit” and “Autoline Dai- 734-459-7570 browser-based application that pro- troit Public Schools. Renaissance ly”; and Jason Stein, editor, Automo- WAREHOUSE SPACE FOR LEASE vides a view into IT and business op- Ballroom, Detroit Marriott Renais- tive News. San Marino Club, Troy. $40 erational process metrics, regardless sance Center. $65, $60 for groups of 10 SAE members, $55 nonmembers, $15 of software vendor or type. Web site: INDUSTRIAL PROPERTY 9,000 to 30,000 sq ft., 24 ft ceilings or more, $75 at the door. Contact: (313) student members, $400 reserved table www.xcendgroup.com. of 10. Contact: (248) 324-4445; e-mail: Drive in doors, Truck docks. $2.00 sq ft/NNN 446-0300; Web site: www.crains Gomez, the Web performance divi- detroit.com/crainsevents. [email protected]; Web site: Centrally located off I-75/12 Mile Road sion of Compuware Corp., Detroit, has www.sae-detroit.org. launched the new Compuware Finan- Ernie -- 248-840-6081 CREW February Meeting: Social Me- cial Analysis Support Tool, which cal- Gold Award Banquet. 6-9 p.m. Feb. 18. 367,000 SQ. FT. AVAILABLE culates how much revenue is at risk dia for Business. 7:30-9:30 a.m. Feb. 10. Commercial Real Estate Women Engineering Society of Detroit; Blue    from slow Web page load times. Web Easily Accessible Low Rates Rail On-site Mgmt Call Us For Personalized Detroit; Palmer Commercial Services. Cross Blue Shield of Michigan; oth- Exterior Storage  www.waretechindustrialpark.com site: www.compuware.com/fastcalc. ers. Honoring the best engineers and CATELLUS GROUP, LLC 810-695-7700 Service: (313) 446-6068 Learn all the necessary tips, tools and strategies to begin implementing a so- scientists in Michigan. Rock Finan- CLOSING TIMES: Monday 3 p.m., DIARY GUIDELINES cial media plan. With David Benjamin, cial Showplace, Novi. $50 by Feb. 12, one week prior to publication date. Sales Matrix. Radisson Inn Hotel, $60 after Feb. 12, $450 for a table of 10. AVAILABLE NOW Please call us for holiday closing times. Send news releases for Business Bloomfield Hills. $35 CREW members, Contact (248) 353-0735, ext. 112; e-mail: 4,000 to 100,000 sq. ft. FAX: (313) 446-1757 Diary to Departments, Crain’s $50 nonmembers. Contact: (785) 832- [email protected]; Web site: Also 10,000 & 25,000 sq. ft. E-MAIL: [email protected] Detroit Business, 1155 Gratiot 1808; e-mail: crewdetroit@crewnet www.esd.org INTERNET: Ave., Detroit, MI 48207-2997 or work.com; Web site: www.crewde Free Standing Bldgs w/truckwells. www.crainsdetroit.com/section/classifieds troit.org. send e-mail to cdbdepartments@ Addy Awards Gala. 6:30-10 p.m. Feb. 19. 1 Mile from Metro Airport Confidential Reply Boxes Available crain.com. Use any Business Diary Ann Arbor Ad Club; others. A celebra- REA CONSTRUCTION PAYMENT: All classified ads must be item as a model for your release, Women Entrepreneurs’ Year of Em- tion of the brightest creative work of prepaid. Checks, money order or (734) 946-8730 Crain’s credit approval accepted. and look for the appropriate powerment: 30 Years of Power, the year, 1960s ad agency style. Rack- Also Heavy Industrial Credit cards accepted. category. Without complete Progress and Policy. 4-8:30 p.m. Feb. ham School of Graduate Studies, Ann Land Available information, your item will not run. 11. NAWBO. Featuring speed net- Arbor. $50 members, $60 nonmembers; See working and a leadership roundtable $25 students. Contact: (734) 449-8808; e- Crainsdetroit.com/Section/Classifieds Photos are welcome, but we www.reaconstruction.net cannot guarantee they will be used. of NAWBO past presidents, senior ex- mail: [email protected]; Web for more classified advertisements ecutive leaders from corporate part- site: www.a2ac.org. 20100201-NEWS--0017-NAT-CCI-CD_-- 1/29/2010 4:22 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 17 Neglected IT needs can come back with a byte

BY NANCY KAFFER That’s the biggest prob- small businesses don’t have criti- Patton, who currently uses Dy- or what services will be provided, CRAIN’S DETROIT BUSINESS lem. … Someone set it up cal patches from in- namic Edge for his company’s IT could be bad news. Small Biz and it’s the last thing on stalled, and therefore are suscepti- needs, said he’s worked with a With a plan in place, Patton feels Computer systems Solutions their mind until they ble” to viruses and malware. number of IT firms in the past and more confident about the security and security patches need the data.” But there’s a little more to it knows what to watch for. of his network, but he also has a aren’t the most exciting And once that hap- than just installing security patch- He said an IT service provider roadmap for what benchmarks part of small-business pens, it’s probably too es. who can’t or won’t explain prob- he’d like to hit for upgrades. ownership, said Bruce late. Most small businesses, McCully lems or goals in layman’s terms, Nancy Kaffer: (313) 446-0412, McCully, owner of Ann But there are some said, use some proprietary soft- won’t explain its pricing structure [email protected]. Arbor-based Dynamic simple steps a business ware, which may conflict with a Edge, a small-business- owner can take to make security update. oriented IT service sure the backup system Nancy Kaffer “When they apply those up- provider. is functioning properly, dates, it causes a conflict between “But if you’re not do- McCully said. the new security patch and the (ex- ing it, it can cause more grief than Step one is to designate a person isting) product,” he said. “What we Are your clients forgetting to send out your market- who will be responsible for back- recommend is that folks do patch- ing newsletter,” he said. ups. ing as soon as possible, but test on McCully said he sees several That person must check on one machine before rolling the high strung? common pitfalls in the computer backup success every time they patches out to all machines. And Let us entertain them. networks of small-business own- swap out the drive or tape. A back- we usually pick someone in the ac- ers that can be remedied even up log tracks how long it took and counting department,” who often without the assistance of a full-ser- how much data was stored. If time uses such software. Complimentary concierge planning. vice IT firm. or stored data has not changed or Another commonplace security Entertainment, events, meetings and more. “There’s some has decreased, that usually indi- issue is conflicting antivirus pro- discussion in cates that the backup device is fail- grams, he said. our company ing, McCully said. Perhaps a program came in- about whether McCully advises business own- stalled on the computers, then an- the most impor- ers to create a desktop file just to the other program was loaded at a lat- tant thing is test the system’s backup capabili- er date, then a third program was cultural backups or secu- ties. purchased even later. rity, but from Every month, he said, change concierge “So you have two or three an- my standpoint, the name of the file. a program of the cultural alliance if you don’t have “Call IT. Say, ‘I misplaced a file, tivirus programs on the comput- of southeastern michigan, the data to re- restore it to my desktop,’ ” he said. ers,” he said, “and they are fight- a 501(c)(3) organization McCully store, you’re re- “They should be able to do it. Keep ing with each other and disabling ally in a bad spot,” he said. “So track of how long it takes. If it each other, so you’re not up to number one is backups, number takes two days, that means when date, you’re not getting patches, two is security.” you have an emergency it’s going you think computers are secure, www.theculturalconcierge.org Many small businesses think to take two days to get your data but they’re wide open.” 248.766.5599 [email protected] they have a functional backup sys- back. That’s an indicator that you Dave Patton got lucky. tem in place, he said. have to modify your backup proce- When his law office’s computer “When we go out and do a prob- dures.” system crashed, he didn’t lose any lem prevention network audit and Security is also key, McCully data. But rebuilding the database ask, ‘Do you have backups?’ They said — and is neglected by many of Bloomfield Hills-based David D. say, ‘Of course we do, who would- business owners. Patton and Associates P.C. was a n’t have backups?’ ” he said. “So “Some folks think they have a painstaking job. we go and look and they have a firewall, a running computer and “It’s a very tedious, precise backup system and maybe a tape antivirus (protection) on their process,” he said, and one that Mission Michigan! or a hard drive they’re swapping computer so that makes it secure,” prompted Patton to become more out, but it stopped working six he said. “What we find when we do proactive about protecting the months ago and no one noticed. our network audits is that most business’ network. Advocates for your Canada pushes public-private partnership for DRIC Michigan business BY BILL SHEA new bridge to connect I-75 and Our attorneys are on a mission to identify CRAIN’S DETROIT BUSINESS Highway 401. insightful legal solutions that work for you We’re anxious to The DRIC study suggests a pri- and your business. Despite the tough Canada wants to use a public- vate company could operate the “ business environment today, we use private partnership form of con- see that the bridge, and the project partners a creative approach to develop struction, financing and operation are interested in using private fi- innovative strategies for for a proposed new Detroit River legislation comes nancing, as well. maneuvering through the most crossing, but alternatives are be- Butler estimated the bridge pro- ing discussed because Michigan through. ject would take 48 to 52 months to challenging economy. Our team serves as your legal still doesn’t have a law that per- ” finish, but couldn’t say when it counselor, business advocate and sounding board. We are mits such an arrangement. Mark Butler, might begin. The project has its the attorneys at McDonald Hopkins – committed to helping Legislation that would permit Transport Canada U.S. and Canadian environmental your Michigan business achieve its mission. the Michigan Department of Trans- the entire bridge or the U.S. feder- approvals, but MDOT must per- portation to enter into such part- al government somehow using its suade the Legislature by June to Attorneys on a Mission® nership projects was introduced public-private partnership law to allow it to proceed with its end of by Rep. Lee Gonzales in May, but construct the span and then dele- the project. Your mission is our mission. the bill remains in the Transporta- gate the project back to Michigan. The entire project has a $5 bil- We never lose sight of it. tion Committee. Canadian officials have been lion price tag, with the bridge it- A message and e-mail were left regularly meeting with MDOT to self at up to $1 billion. The remain- for Gonzales on Friday. discuss the project, including the der would be highway, ramp and “A P3 is a preferred option for status of the partnership legisla- plaza work, including the Wind- Canada,” said spokesman Mark tion. sor-Essex Parkway that is separate Butler, senior adviser for the “It’s always a topic of conversa- from DRIC and is purely a Canadi- A business advisory and advocacy law firm Windsor Gateway Project, which tion,” Butler said. “We’re anxious an effort. is Transport Canada’s half of the De- to see that the legislation comes The intent is to use tolls to repay 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 troit International Gateway Project. through.” tax-exempt bonds that would fi- 248.646.5070 • www.mcdonaldhopkins.com Canada has such laws, but MDOT, Transport Canada, On- nance construction. Stephen M. Gross Michigan must as well because the tario’s Transportation Ministry and And if no public-private partner- Detroit Managing Member bridge itself would be co-owned by the U.S. Federal Highway Administra- ship law happens? Chicago • Cleveland • Columbus • Detroit • West Palm Beach the two governments. tion are partnering on the Detroit “We would have to, excuse the “You can’t build half a bridge,” River International Crossing pro- pun, cross that bridge when we get Automotive • Business counseling • Business restructuring • Employee benefits Butler said. ject, which would link Detroit’s to it,” Butler said. Energy • Estate planning • Government advocacy • Healthcare Labor and employment • Litigation • Intellectual property • M & A • Real estate Without such a Michigan law, Delray neighborhood and Wind- Bill Shea: (313) 446-1626, Trade secret, non-compete and unfair competition • White collar crime options include Canada building sor’s Brighton Beach area with a [email protected] 20100201-NEWS--0018-NAT-CCI-CD_-- 1/29/2010 5:06 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS February 1, 2010 More large suppliers get exit DMC: Plan shifts joint residency program ■ From Page 1 ing hospitals and medical Parisi have been meeting almost loans; smaller firms struggle schools have begun to move weekly to discuss the future of away from co-sponsorship resi- the residency programs and clin- BY ROBERT SHEREFKIN behind companies seen as win- That has created a pipeline of dency models in an effort to ical and professional services CRAIN NEWS SERVICE ners, said Groustra, a partner with needy companies, some of which streamline decision-making and contracts. the turnaround firm Conway have cleansed their balance sheets improve operating efficiencies. The 50 dual-sponsored pro- After a wave of supplier bank- MacKenzie Inc. in Birmingham. and are now attractive candidates For example, as an academic grams include anesthesiology, ruptcies last year, workout spe- Those winning suppliers have for additional financing. medical center, the University of emergency medicine, internal cialists expect a surge of financing the technological capabilities and The money hasn’t always been Michigan Hospitals and Health Cen- medicine, cardiovascular dis- to support companies looking to financial stability that automak- there. Troy-based Delphi Corp. lan- ters in Ann Arbor sponsors 88 ease, neurology, neurosurgery, emerge from creditor protection ers desire. guished in bankruptcy for four residency programs with its af- ophthalmology, psychiatry, this year. Most bankruptcy exits are fi- years in part because of wrangling filiated medical school, provid- surgery, radiation oncology, Late last year, exit loans began nanced by investors who, in re- over who should pay how much to- ing faculty members to teach physical medicine and rehabili- to flow for some bankrupt suppli- turn, take an equity position in the ward its exit financing. The com- residents and to direct pro- tation. ers. Now more loans are being company, said Michael Fleming, a pany emerged from Chapter 11 in grams. After DMC and Wayne State arranged for several large suppli- partner with the law firm Plunkett October. The problems between DMC finish residency program negoti- ers, although negotiations with Cooney P.C., of Bloomfield Hills. Interiors supplier Lear Corp. in and Wayne State, which have ations, sources told Crain’s, they smaller ones face a rough road. Moreover, over the past year, Southfield followed in November shared a medical education rela- will start work on negotiating This doesn’t mean fewer suppliers the stock prices of suppliers have and Northville-based wheel maker tionship for more than 100 years, contracts with Wayne State’s 14 will file for bankruptcy, but those surged. That, in turn, has encour- Hayes Lemmerz International Inc. a began in the late 1990s, when clinical departments at DMC. going in may be able to get out aged investors to put money be- month later. DMC was racking up $462 mil- Each of the departments, or more easily now. hind strong suppliers, even those Now Novi-based Cooper-Standard lion in operating losses from 1998 practice plans, represents med- “Money is available now,” said in bankruptcy. Automotive Inc., a fluid-handling sup- to 2003. ical specialties including neurol- workout specialist John Groustra. The Troy-based Original Equip- plier which sought court protection Since 1998, when DMC hired ogy, internal medicine, surgery “There is pressure on the part of in- ment Suppliers Association counted in August, is seeking $350 million to the Hunter Group to recommend and obstetrics and gynecology. vestors in private-equity firms to do nearly 50 North American bank- $450 million in exit financing from actions to reverse a $140 million While DMC would administer some deals, to put money to work.” ruptcies last year among auto its current lenders, including pri- operating deficit, Wayne State the residency programs, a second The smart money is lining up parts suppliers. vate-equity groups, said a source fa- and DMC have engaged in vari- Wayne State faculty member, who miliar with the discussions. ous contract and strategic plan- also requested anonymity, said, Smaller parts makers still strug- ning disputes. “The academics won’t change. We gle to find exit financing. Joe Part of Duggan’s plan to re- will still provide the clinical ser- Bione, president of the Troy-based store DMC to profitability when vices at DMC for the residency restructuring company Whitehall he took over as CEO in January programs.” Group, said small companies are 2004 was to “put accountability But there is some concern marching to orderly liquidations. in the WSU contract” and “at- among Wayne State faculty Banks are not lending, and pri- tract private physicians back to about how the Medicare gradu- vate-equity sponsors do not find DMC,” according to testimony he ate medical education funding, small deals economical, he said. gave in June 2008 to the Michigan which is controlled by DMC, As a result, smaller suppliers Senate health policy committee. would be distributed to Wayne need other strategies. In February 2009, Wayne State State under the contracts. Take Dearborn-based Turchan and DMC settled a yearlong Under the current contract, Technologies Group Inc. According $12.3 million reimbursement dis- which expires June 30, DMC to court records, the suburban De- pute over Medicaid, indigent pays Wayne State about $82 mil- troit machining company, which care and professional service lion annually for teaching and employs advanced materials man- payments. The two organiza- clinical services. ufacturing, is set to emerge from tions continued to talk about a “There will be less money to Chapter 11 within 30 days by tap- contract renewal. Wayne State because of federal ping its own cash flow rather than Then, last summer, Dr. Robert funding and because DMC is outside financing, a rare arrange- Mentzer Jr. resigned as dean of willing to take on administrative ment today. the Wayne State medical school expenses on running the pro- Owner Manuel Turchan said the during tense negotiations that grams,” the faculty member said. company’s planned exit from would have transferred 10 of “Right now we get so much per bankruptcy is possible because of Wayne State’s clinical depart- resident for the services we pro- support from customers such as ments to DMC. He was replaced vide.” General Motors Co. by Parisi. Jay Greene: (313) 446-0325, From Automotive News Since that time, Duggan and [email protected]

Commercial • Residential • Retail BRIEFLY NAIAS attendance tops 2009’s Taubman to chair shopping tional program through the U.S. Department of Treasury. Final attendance at the 2010 centers’ main trade association Treasury’s nonprofit Community North American International Auto William Taubman, COO of Development Financial Institutions Architectural Glass • Ornamental Glass • Show was up from last year by Fund awarded a $1 million grant to about 65,000, organizers say, from Bloomfield Hills-based Taubman Back Painted Glass • Decorative Glass • Centers Inc., is expected to be provide loans and technical assis- Tub & Shower Enclosures • Stair & Patio roughly 650,000 in 2009 to 715,000 tance to nonprofit community de- this year. named chairman of the New York- Railings • Bathroom & Kitchen Sinks • based International Council of Shop- velopment organizations and • • • “Our loose goal was to get as Faucets Countertops Water Walls ping Centers for 2010-2011. small businesses. • • • close to 700,000 as we could, and ob- Glass Flooring Glass Tiles Windows Taubman was nominated by the About $550,000 of the grant is be- • • viously we surpassed that,” said Curtain Wall Cabinet Inserts Marker ICSC board but must be confirmed ing used to refinance the mortgage • • • • Sam Locricchio, managing direc- Boards Tables Mirrors Closet Doors formally in May. on an affordable housing project. • • • tor and head of the global automo- Partition Walls Room Dividers Stairs The group is considered the pri- The trust fund loan to Southwest • tive practice for John Bailey & Asso- Back Splashes Doors mary association for the shopping Housing will save the nonprofit ciates Inc. Public Relations in Troy. more than $26,000 a year, enabling Locricchio handles public rela- center industry. Taubman has been a board it to keep its rents affordable, the tions for the auto show. agency said. Though more countries were member since 2006. We do service work for all glass — Daniel Duggan The announcement is in con- products mentioned above and represented during this year’s me- junction with a visit to Detroit last dia days, fewer reporters were on correlating hardware week by Donna Gambrell, director hand, Locricchio said. Southwest Housing Solutions of the Community Development FREE About 5,000 reporters from 61 • Estimates & Design Consultations Financial Institutions Fund to at- countries attended the show this wins grant from Treasury tend an event hosted by the Michi- • Specializing in Custom Installations year, compared with 5,500 re- Detroit-based Southwest Housing 313.928.0428 gan Interfaith Trust Fund. • SHOP online @ trainorglass.com/retail porters from 48 countries in 2009. Solutions has received more than — Sherri Welch 7420 Allen Road Allen Park, MI. 48101 — Nancy Kaffer half of a new grant issued by a na- 20100201-NEWS--0019-NAT-CCI-CD_-- 1/29/2010 4:34 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 19 Planning: Neighborhood groups want role in remaking Detroit ■ From Page 3 troit 1950. That’s a huge mindset shift.” The perception, Goddeeris said, Demographer: Numbers key to shaping city’s future has been that CDOs would violently reject such a plan, not offer to work with the city and foundations. BY NANCY KAFFER years. Last year, he launched the efforts in Detroit.” dollars and grants from national Maggie DeSantis, president of CRAIN’S DETROIT BUSINESS Detroit Area Community Indicators Members of the community — foundations, Metzger said. the Warren/Con- System — a name Metzger is dis- from residents to nonprofits to All parties involved in the dis- Kurt Metzger knows how many carding in favor of Data Driven De- the city to philanthropic organi- cussion about resizing Detroit — ner Development city workers are Detroit resi- Coalition and a troit, or D3. zations — could update the sys- the city, the foundations and the dents, how the makeup of the east Metzger envisions the data tem, making it an evolving, up-to- nonprofit community — have said member of the side’s ethnic communities has CDAD board, clearinghouse — a work in date pool of information. that data-driven, transparent de- shifted over time, and which De- progress that he estimates will It’s something Detroit has nev- cisions are necessary to achieve said that the troit neighborhoods have suffered group has been cost roughly $500,000 — as an on- er had, say those involved in community buy-in. the greatest losses in population line neighborhood reporting sys- neighborhood work. Maggie DeSantis, president of invited to pre- and housing stock. sent the report tem, an exten- The system could be built into a the Warren/Conner Development For years, he’s been the metro sion of a parcel larger regional database that Coalition and a board member of to area founda- area’s go-to guy for meaningful tions and to the survey D3 un- would allow for the development Community Development Advocates DeSantis demographic analysis or sound- dertook last of detailed regional data, Metzger of Detroit, said accurate data is city’s Planning bite statistics. and Develop- year. said, and also be used to bench- crucial to implementation of a re- Now, with funding for the re- “Such a sys- mark the Detroit region with oth- cent CDAD draft plan for land ment Depart- named Data Driven Detroit and a ment. tem would be er parts of the country. uses in Detroit. mission to create a city-centric built from our Metzger got his start with the “What this document suggests “My sense is data clearinghouse, Metzger is that the city is parcel survey U.S. Census, serving in local and is that we use indicators (to deter- poised to be a key player in shap- work that regional posts in his native Ohio, mine land use),” she said. “Right eager to incorpo- ing Detroit’s future. rate all of this re- Metzger would be ex- moving to Detroit in 1975. now there’s no parcel mapping of As the city and its nonprofit panded to look Since then, he’s worked at commercial corridors, (no infor- ally good work and foundation community move that is being at residential, commercial and in- Wayne State University and the Unit- mation about) what is the level of toward developing a plan for re- dustrial parcels and structures,” ed Way of Southeastern Michigan be- community organization and in- done by CDAD, sizing the city, data is key. by all of these he said. fore starting D3. volvement in various neighbor- Rapson Without in-depth knowledge of “These would be layered with Collecting data, though he’s hoods. Some of this data is avail- other organiza- neighborhood characteristics, or tions in city of Detroit,” said Rip land value, land use, sales and done plenty of that, isn’t his fa- able, some is currently unusable, indicators, it isn’t possible to foreclosure data … overlaid by de- vorite part of the job. It’s using some is not gettable, some we Rapson, president of the Kresge make good decisions about long- Foundation. mographic, health, public safety the information to describe real don’t have yet, and some you can’t term land use. and additional information that people and real neighborhoods — get politically.” “But there needs to be a unified, In 2008, Metzger received about coherent, intentional way of com- would allow all parties — from and to see how applied data can ef- D3, she said, stands to be a valu- $1.8 million from the Troy-based block club to philanthropy — to fect positive change. able tool in collecting such infor- ing at the question of land use Kresge Foundation and the Detroit- planning, so this will fit almost understand what is on the ground With the data D3 can provide, mation. based Skillman Foundation to fund a and how we make an impact. the city can be much more com- Nancy Kaffer: (313) 446-0412, without question into the broader data clearinghouse for three efforts. But I think what the city is Such a structure would inform all petitive in the quest for federal [email protected]. embarked on is an effort to pull these multiple efforts, all of high That’s why it’s essential to com- which mix commercial and resi- guidepost once a land use plan is the task force attempted to define value, into a single process.” pile neighborhood benchmarks, or dential use in a walkable urban completed and neighborhood data the role a CDO could play in bol- It’s important for CDOs, which indicators, that quantify factors neighborhood, or which should re- is compiled. stering a commercial, mixed use, work closely with the city’s neigh- like the quality of a neighborhood’s turn to a natural state as public “There’s more meat to what residential, natural or industrial J borhoods, to take a role in defining housing stock, its population densi- parkland within the city, should we’re talking about than a land use neighborhood. the future of Detroit, he said. ty over time, infrastructure and in- be driven by data, DeSantis said. strategy,” he said. “We understand our roles will ■ DeSantis said the plan recog- volvement or engagement of a CDO The next step, she said, is to fi- DeSantis said that a key ques- change,” she said. But as the nizes that the city’s neighborhoods or neighborhood association. (See nalize the draft report. tion for CDAD was what role com- groups that work most closely are not homogeneous, that within related story above.) The framework, said Tim Thor- munity development organiza- with the city’s neighborhoods, “we each area may exist a range of via- And decisions about which land, executive director of South- tions would play in a smaller have to have a role.” bility and the potential for multi- neighborhoods should be encour- west Solutions and chair of the Detroit. Nancy Kaffer: (313) 446-0412, ple land uses. aged to grow as village hubs, CDAD board, could be used as a For each of the nine land uses, [email protected]

Film: Some projects in slow motion amid casting for incentives ■ From Page 3 Royal Oak and Hollywood produc- square-foot stage, 10,000 square space to production companies William Morris Endeavor and er Jeff Stern have funded the com- feet of furnished office space, post- will eventually have to develop a brother of White House Chief of pany’s growth in large part “out of production facilities, a screening It’s important to mix of customers, including com- Staff Rahm Emmanuel, is also one operations,” since relocating to room and other film production “ mercial production, to succeed. of the project backers. Michigan from Los Angeles in support at the Madison Heights lo- be able ... to “That’s just what it’s going to The partners expect to sell be- 2008. cation. mean to be a studio in Michi- tween $23 million to $28 million to “It’s still about money,” he said. By comparison, Raleigh Studios expand the gan. Raleigh is not going to be help fund the project, with $18 mil- “I’m not personally familiar with Michigan proposes at least seven entirely Hollywood-focused on lion of the bonds to be insured by all the details of the projects in sound stages in a 185,000-square- credits to large movies for wide release,” the State of Michigan Employees Re- Pontiac or (Unity Studios in) Allen foot building it will erect along he said. tirement System and the other Park, but my understanding is with renovating an existing commercial “There’s going to be a need to $5 million to $10 million in unse- that for projects of that size an is- 368,400-square-foot building in do television, corporate produc- cured bonds to be purchased di- sue tends to be lining up financ- Pontiac. and other tion work, commercials and rectly by the project backers or ing.” With 45-foot-high interior ceil- smaller projects as part of a suc- their immediate families. work. Adler Spilman said S3, which also han- ings and up to 90,000 square feet ” cessful business model. That’s Of the remaining $32 million, dles film equipment rental at its within a single sound stage under why it’s important to be able at Michigan Motion Pictures expects Mark Adler, Ferndale headquarters and some the Pontiac plan, the Raleigh site some point to expand the credits to to be reimbursed $3.8 million for Michigan Production Alliance financial assistance to production could conceivably handle much commercial and other work.” infrastructure improvements at companies through its Michigan bigger film projects. Mark Adler, director of the Partners in Michigan Motion the site through an allocation to Film Finance subsidiary, also has “In the short term, we probably Novi-based Michigan Production Al- Picture Studios include Holly- the city of Pontiac under the stayed small. won’t see as many of the “Red liance, a Novi-based trade group wood-based Raleigh Studios; A. Al- American Recovery and Reinvest- Many of the projects that pass Dawn” kind of productions com- that lobbies on behalf of the state’s fred Taubman and the Taubman ment Act. through its doors are modestly ing with $50 million or more bud- film industry, said the caps on family; Walbridge Aldinger CEO Another $11.1 million will come funded studio or independent pro- gets looking for a large-sized stu- compensation under Michigan’s John Rakolta; a trust for Nelson in Michigan film infrastructure jects, often with $5 million to dio and make lots of explosions,” incentives law could draw smaller Ventures’ CEO Linden Nelson; tax credits and $15.1 million from $10 million budgets, that can take Spilman said. productions at first, but in time it and William Morris Endeavor Enter- the federal New Market Tax Cred- full advantage of Michigan film in- “We wanted to make the size of could attract more and larger pro- tainment L.L.C., the company creat- its Program for investors in a com- centives since none of their direc- our studio suited to the size and jects like the “Red Dawn” remake ed last year by the merger of mercial or mixed-development tors or actors would exceed the $2 budgets of productions that can due out in November. William Morris Agency and En- project in low-income areas. million cap on the incentives. make the most of Michigan’s in- He also predicts Raleigh, S3 and deavor Entertainment. Chad Halcom: (313) 446-6796, S3 studios includes one 25,000- centive programs.” other local companies that lease Ari Emmanuel, co-CEO of [email protected] 20100201-NEWS--0020-NAT-CCI-CD_-- 1/29/2010 5:35 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS February 1, 2010 App makers: New iPad may fuel ‘gold rush’ for programmers ■ From Page 1 developer program and was get- ting access to the iPad’s app tech- nical documentation on Wednes- day, with personal accounting and calendar apps in mind. Friends in advertising Schwartz said Apple’s cachet in the technology device universe could help it build a market where Rochester agency backs video conferencing app that links clients, customers none currently exists for the iPad. “The buzz and buildup is similar BY BILL SHEA ClickCast — an ment and digital marketing pro- application from to iPhone,” he said. CRAIN’S DETROIT BUSINESS grams,” Glauberman said. Rochester-based After years of speculation, Cu- Ann Arbor-based Fry Inc., which The well-documented struggles ad agency Daniel provides e-commerce services pertino, Calif.-based Apple un- Brian & veiled the iPad in of the advertising industry have Associates — ranging from Web site develop- on Wednesday, creating a new prompted agencies to increasing- lets users take ment and promotion to online or- type of device for what it believes ly rely on the exploding universe part in live video der processing, is working on a is a market between laptops and of social media as a tool for clients conferences prototype of what it calls a shared the 75 million and iPods — with Facebook.com at the top of through social online shopping experience. the company has on the market. the list. networking site People would be able to let their “We think it’s going to be a One metro Detroit firm is using Facebook.com. Facebook friends know, in real whole other gold rush for develop- a new live video conference time, about something they’re ers as they build apps for the /text/chat application for Face- thinking of buying on a retailer’s iPad,” Scott Forstall, Apple senior book to lure new clients and en- Web site and could connect via a vice president of iPhone software, tice current customers to stay. live Web cam to talk about it told reporters Wednesday. Called ClickCast, the applica- while on the same page together, Stamford, Conn.-based market tion allows users to participate in said David Fry, the company’s research firm Gartner Inc. estimates the video conferencing by asking founder and CEO. that mobile app revenue will reach questions that are posted in a per- cession slammed the advertising “You could spend a million dol- Retailers and others that use so- $6.7 billion this year compared to son’s status update, which are industry, and DBA found itself lars in promotion and not get that cial media as a business tool still $4.2 billion in 2009 last year. By 2013, viewable by their network of pitching against 50 agencies for a many people to show up,” Cobb need to let consumers know it could hit $30 billion. friends. The update has a link single account rather than said. what’s going on, and that often More than 3 billion iPhone and back to the video-chat conference, against just a handful, Cobb decid- It’s not just the agencies turn- means traditional print and iPod Touch applications have been allowing those friends to join. ed to take action. ing to social media, but the clients broadcast advertising. downloaded from Apple’s App Store The goal is to use Facebook’s “We started thinking about are directly as well: Batavia, “Marketing of these things is in the past 18 months, the compa- core feature — a user’s network of what kind of apps we can develop Ohio-based Procter & Gamble Co., going to be a priority,” he said. ny said in a statement on Jan. 5. friends — to virally grow partici- that make us unique,” he said. the world’s biggest marketer with Launched as a social media por- More than 140,000 apps are pation in the live online event. “This is one of the niches we de- $9.7 billion in estimated ad spend- tal for college students in 2004, available from the store. The Web site claims more than 350 veloped. We wanted to integrate ing, recently opened a California Palo Alto, Calif.-based Facebook Apps — which include games, so- million active members and is the into social media in a new way.” office devoted to developing its quickly grew into the 350 million cial media, shopping, utilities and No. 2 most-visited site worldwide. So he hired what he calls tech- Facebook presence. active users it claims — a number more — are typically priced at The app is the brainchild of nologists to develop social media “It’s definitely the hot thing at that has marketers salivating. 99 cents, but many are free while Rochester-based advertising applications. the moment, and I don’t know if Total U.S. ad spending was others can cost more than $10. That agency Daniel Brian & Associates, The result was ClickCast, its just for the moment,” said $142 billion in 2008, the most re- means developers deal in volume. which has offices in Los Angeles, which DBA offers to clients as Steve Glauberman, CEO of Ann cent figures available in Advertis- Apple will use the same revenue and . The firm is in part of the agency’s services. Arbor-based Enlighten Inc., which ing Age’s 2010 annual ad spending model for iPad apps as it does for the the process of changing its name So far, it’s had several high-pro- develops Web sites and helps con- wrap-up. Of that, $9.7 billion was iPhone: It keeps 30 percent of all app to DBA. file deployments, including: duct online advertising cam- spent online. sales while the developer retains the Almost 20 percent of the Ⅲ The launch of the 2009 docu- paigns. “A lot of the realization But like its owners, advertisers other 70 percent. Apple doesn’t agency’s $8 million in annual mentary “The Cove,” about dol- now is to engage with consumers are still exploring ways to mone- charge developers for free apps. billings are now linked to social phin hunting in Japan. It used where consumers already are.” tize the site and its mammoth pop- Ben Kazez will be prospecting media and Web ClickCast to introduce the film’s Enlighten uses a wide variety of ulation. Insiders estimate the site for that app applications. director to online conservationist social media outlets for its clients was going to generate $550 million gold. Daniel Cobb, and dolphin advocate communi- and is heavily involved in Face- in revenue for itself last year — a He moved his 41, a Crain’s “40 ties — and more than 250,000 par- book applications for campaigns, fraction compared to the No. 1 on- tech-based start- under 40” hon- ticipated. The film reportedly is a such as the “In-Between Nation” line site, Inc., whose fourth- up Mobiata L.L.C. oree in 2004, semifinalist for the five Best Doc- for Bioré skincare products. quarter revenue alone was nearly from Northfield, founded the umentary entry slots at the Acad- Those campaigns are typically $5 billion. Minn., to Ann agency in 1992, emy Awards. part of a broader effort for Facebook is the second-most- Arbor last sum- and today its Ⅲ Austin, Texas-based grocer clients. visited Web site in the U.S. and mer and has cre- clients include Whole Foods Market used ClickCast “For several of our major globally, according to San Fran- Paramount Digi- to have the chain’s “Renegade clients, we are creating social me- cisco-based Alexa.com, a Web traf- ated mobile apps Cobb for the iPhone. tal Entertain- Lunch Lady” personality talk dia engagement plans and inte- fic measurement service owned Kazez Mobiata’s ment, Hungry Howie’s Pizza and Hen- about healthy foods at schools, an grating our approach to the plat- by online retail giant Amazon.com. apps include FlightTrack and ry Ford Health System. event the agency said drew more form within broader Bill Shea: (313) 446-1626, FlightTrack Pro, which track When the national economic re- than 80,000 online participants. customer-relationship manage- [email protected] flights worldwide, providing gate information, itineraries and de- the cell phone. The iPhone is still a a K-12 educational productivity lays. They retail at $4.99 and $9.99, cell phone,” he said. “The trend is apps company, Ann Arbor-based respectively, and have generated for fewer devices that do many ca- I think there will be a spurt of GoKnow. more than $1 million in revenue. pabilities at once.” “ “There is no need for what While specific apps were obvi- Device convergence also will app development. ... It is the they’re producing,” he said. “The ous for the hot smart phone mar- fuel device competition. hope is it creates a whole new mar- ket — the Apple 3G iPhone was the Hewlett-Packard Co. and Inc. developer community that will ket. My feeling is they’re wrong.” No. 1 U.S. mobile phone in sales be- are expected to introduce slate- But even if the iPad is Apple’s tween January and October, ac- style computers or tablet e-readers create the need (for the iPad). Edsel or New Coke, it will be a cording to a December report from on a Microsoft platform. ” boon for some time to app makers, The Nielson Co. — the iPad doesn’t Online retail giant Amazon.com Elliot Soloway, GoKnow who are expected to play an inte- have as clear a role. Application has announced it will open its Kin- iPad, said Rich Harshbarger, the There’s some concern that the gral role in the device’s success. developers like Kazez are brain- dle e-reader to application develop- vice president of consumer mar- high price point will discourage “I think there will be a spurt of storming what consumers and the ers. About 1.5 million Kindles are keting for the Detroit Media Partner- adoption,” said Jim Tobin, presi- app development. (Apple is) bet- business community will do with on the market, and Apple said it is ship that oversees the joint busi- dent of Ignite Social Media L.L.C., a ting that spurt will fuel the need. It the device. challenging Amazon with the ness functions of the newspapers. social networking consulting ser- is the developer community that “People still need to figure out iPad’s e-reader capability, which Some who engage in mobile de- vice that’s a subsidiary of Birm- will create the need,” said how they’ll integrate it in their targets books, magazines, newspa- vice marketing are cautious about ingham-based Brogan & Partners Soloway, whose classes have 50 lifestyle,” he said. “Why is this pers and other print media. the iPad because of its $499 to $829 Convergence Marketing. students. useful and how is it more powerful The and The price and the lack of an estab- Others are outright skeptics, “I see these kids doing absolute- than the iPhone and more portable Detroit News, which have deals to lished market. such as Elliot Soloway, professor ly amazing things,” he said. “They than the laptop?” provide their content to Amazon’s “I don’t think I’d change strate- of computer science and engineer- can create software in 48 hours A desire to have several devices Kindle and Mountain View, Calif.- gy for most clients based on the ing at the , and people will buy it in 48 hours.” in one might be the key, he said. based Plastic Logic’s QUE e-reader, tablet yet, not at least until I can who teaches a course on mobile Bill Shea: (313) 446-1626, “It’s a much newer concept than also plan to get content onto the see some adoption numbers. app development. He’s also CEO of [email protected] 20100201-NEWS--0021-NAT-CCI-CD_-- 1/29/2010 4:33 PM Page 1

February 1, 2010 CRAIN’S DETROIT BUSINESS Page 21 Powermat: Fraud: Youth leagues susceptible www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] — may be the latest example of a EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Charging 0460 or [email protected] youth sports association that fell YOUTH SPORTS BUDGETS MANAGING EDITOR Andy Chapelle, (313) 446- victim to embezzlement because 0402 or [email protected] Some youth sports organizations operate on budgets of $1.5 million or of lack of financial controls. ASSISTANT MANAGING EDITOR/FOCUS Jennette more, with substantial reserves. The liability any youth group or association Smith, (313) 446-1622 or [email protected] ahead of But it’s not alone. In the past BUSINESS LIVES EDITOR Michelle Darwish, (313) could face for lack of financial controls can be many times its budget size, three to four years, case after case 446-1621 or [email protected] said Michigan Nonprofit Association President Kyle Caldwell. Here are 2008 COPY DESK CHIEF Gary Piatek, (313) 446-0357 of embezzlement or theft has sur- financials from a sampling of local youth sports groups: or [email protected] faced at a number of youth sports ASSISTANT NEWS EDITOR Jeff Johnston, (313) forecasts Ⅲ Royal Oak Hockey Association: balances $1.35 million 446-1608 or [email protected] groups in the state. Total revenue $620,887, net Ⅲ Michigan Youth Basketball DATA EDITOR Anne Marks, (313) 446-0418 or ■ From Page 3 Ⅲ In 2006, the former commis- [email protected] assets/fund balances $46,484 Association: Total revenue WEB EDITOR Christine Lasek, (313) 446-0473, it to a lot of formats and plat- sioner of the Grand Blanc chapter Ⅲ Ann Arbor Amateur Hockey $63,870, net assets/fund [email protected] forms.” of the America Youth Soccer Organi- Association: Total revenue balances $3,594 WEB DEVELOPER Steve Williams, (313) 446- zation stole nearly $34,000 from 6059, [email protected] Powermat has competition. $848,592, net assets/fund Ⅲ Lac St. Clair Baseball & Softball EDITORIAL SUPPORT Robertta Reiff (313) 446- A similar product called My- fundraisers, registration fees and balances $5,507 Association: Total revenue 0419, YahNica Crawford, (313) 446-0329 uniform sales. NEWSROOM (313) 446-0329, FAX (313) 446- Grid is being distributed by Du- Ⅲ Kensington Valley Hockey $58,019, net assets/fund 1687 TIP LINE (313) 446-6766 Ⅲ The following year, the former racell, a subsidiary of Cincin- Association Inc.: Total revenue balances $5,293 REPORTERS treasurer of the Mount Morris Moun- nati-based Procter & Gamble Co. $1.66 million, net assets/fund Ⅲ Warren Jets Youth Football Inc.: Ryan Beene: Covers auto suppliers, steel, higher taineers Wrestling Club pleaded guilty balances $158,908 Total revenue $45,634, net education and Livingston and Washtenaw While the MyGrid is based on counties. (313) 446-0315 or [email protected] to attempted embezzlement and was Ⅲ assets/fund balances $87,039 different technology, it com- Michigan Youth Soccer League: Daniel Duggan: Covers retail, real estate and ordered to pay back $12,000. Total revenue $279,974, net petes with Powermat, said Kurt Ⅲ Birmingham Unified Youth hospitality. (313) 446-0414 or Ⅲ Between 2007 and 2008, the assets/fund balances $58,896 [email protected] Iverson, external relations Football Association: Total former treasurer of the Goodrich Ⅲ Rochester Youth Soccer League: revenue $73,521, net assets/fund Jay Greene: Covers health care, insurance and the manager for Duracell. environment. (313) 446-0325 or Athletic Boosters Club in Genesee Total revenue $628,474, net balances $14,045 [email protected]. The MyGrid is available at County embezzled $48,000 from the assets/fund balances $778,841 Ⅲ Romeo Junior Bulldogs Youth Chad Halcom: Covers law, non-automotive retail stores in California and manufacturing, defense contracting and Oakland club over a 12-month period. Ⅲ Michigan State Youth Soccer Football League Inc.: Total revenue and Macomb counties. (313) 446-6796 or on Amazon.com, he said, though Ⅲ During the same period, the Association: Total revenue $25,926, net assets/fund [email protected]. he would not release sales. Tom Henderson: Covers banking, finance, former president of the Allendale $1.79 million, net assets/fund balances $53,241 The technology and biotechnology. (313) 446-0337 or Township Youth Athletic Association [email protected]. technolo- Nancy Kaffer: Covers small business, the city of in Ottawa County, west of Grand loss of nearly $1.1 million. Its re- for a long period of time and they gy is at Detroit, Wayne County government. (313) 446- In the Rapids, embezzled $16,000 from the serves, following the embezzle- are in a position of trust, that’s just 0412 or [email protected]. such an “ organization. ment, were just $5,507. a bad business practice.” Bill Shea: Covers media, advertising and early marketing, entertainment, the business of sports, United The kicker here? When enrollment dropped to 525 The association now requires and transportation. (313) 446-1626 or stage it’s The league’s board of directors youths last year from 600 the year that all checks — regardless of [email protected]. hard to Nathan Skid: Multimedia reporter. Also covers the States, reportedly conducted a back- before and 700 in 2008 — and with amount — are signed by both the food industry. (313) 446-1654, [email protected]. say what ground check and found he had no reserves to serve as a buffer — board treasurer and another mem- Sherri Begin Welch: Covers nonprofits and platform Powermat two previous embezzlement con- the association couldn’t meet its ber of the executive committee. services. (313) 446-1694 or [email protected] will be LANSING BUREAU victions but hired him anyway. contractual payments with the And it’s sending board members the most Amy Lane: Covers business issues at the Capitol, is the Fraud and embezzlement are Ann Arbor Ice Cube rink and lost to Nonprofit Enterprise at Work in telecommunications and utilities. (517) 371- success- 5355, FAX (517) 371-2492, [email protected]. or taking place in amateur sports its long-term contract. Ann Arbor for board training. ful, he 115 W. Allegan, Suite 220, Lansing 48933. product leagues across the country, said It’s since recouped $50,000 from Fraud among nonprofits isn’t said. ADVERTISING Sally Johnson, its insurance com- relegated to just one segment. with the “This executive direc- pany. West Bloomfield-based nonprof- ADVERTISING DIRECTOR Marla Downs, (313) is a brand 446-6032 or [email protected] tor of the Stuart, That, with the it watchdog Gary Snyder compiled SALES INQUIRIES: (313) 446-6052; FAX (313) visibility. new cate- You can be a 393-0997 Fla.-based Nation- restitution $1.5 billion worth of fraud among ” gory; it’s “ ADVERTISING SALES Jeff Anderson, Matthew J. al Council of Youth paid so far by all U.S. nonprofits from published Langan, Lori Tournay Liggett, Tamara Rokowski, Rob Enderle, at a very $10,000 Kimberly Ronan, Cheryl Rothe, Dale Smolinski Sports, which rep- Knight, has al- reports across the country last Enderle Group early CLASSIFIED SALES (313)-446-0351 resents more lowed it to pay year for his a bimonthly e-newslet- MARKETING MANAGER Irma Clark stage,” operation than 185 groups the rink. But ter, “Nonprofit Imperative.” MULTIMEDIA MANAGER Alan Baker, (313) 446- Iverson said. “But as of now, 0416 or [email protected] serving 60 million and still the associa- That reflected a 50 percent in- we’re happy with the consumer EVENTS MANAGER Nicole LaPointe participants. tion is now op- crease over the examples he collect- MARKETING ARTIST Sylvia Kolaski interest we’ve seen.” “There’s proba- take on a erating on a ed in 2008, but is only a fraction of SALES SUPPORT Suzanne Janik, YahNica Crawford So far, Powermat is the lead- CIRCULATION Candice Yopp, Manager. bly a stronger lev- year-to-year all fraud that takes place among ing firm, said Rob Enderle, MARKETING COORDINATOR Kim Winkler el of family trust, $1 million contract with nonprofits, said Snyder. PRODUCTION MANAGER Wendy Kobylarz principal analyst in the Enderle therefore some- the Cube and A 2008 study done by four Uni- PRODUCTION SUPERVISOR Larry Williams, Group, a San Jose, Calif.-based (313) 446-0450 one may be more liability. was unable to pro- versity of Dayton professors estimat- technology consulting and ana- apt to think that ” vide any scholar- ed nonprofit fraud at about $40 bil- CUSTOMER SERVICE lyst firm. they’re going to Kyle Caldwell, ships this year, lion in 2006, based on estimates MAIN NUMBER: Call (888) 909-9111 or write “Right now, it’s the preemi- get away with it,” Michigan Nonprofit Association [email protected] Anderson said. from the Association of Certified SUBSCRIPTIONS $59 one year, $98 two years. nent product in the United she said. Knight, who averted jail time, is Fraud Examiners that all organiza- Out of state, $79 one year, $138 for two years. States,” he said. “In Europe, Outside U.S.A., add $48 per year to out-of-state Most crimes against youth sports repaying the association restitution tions — nonprofit, for-profit and rate for surface mail. Call (313) 446-0450 or (888) 909-9111. there are a few others floating organizations that Johnson is of $1,500 per month after an initial governmental — lose on average around, but in the United SINGLE COPIES: (888) 909-9111. aware of are in the $20,000-$30,000 lump sum payment of $75,000. between 5 percent and 6 percent of REPRINTS: (800) 290-5460, ext. 125; (717) 399- States, Powermat is the product range of embezzlement, she said. 1900, ext. 125; or ashley.zander@theygsgroup But the association isn’t satisfied. their revenue to fraud each year. .com. with the visibility.” “But that’s a lot of money for or- “I think we are going forward In a New York Times article TO FIND A DATE A STORY WAS PUBLISHED: Powermat’s standing above ganizations that don’t have huge with a civil suit to get restitution,” published in March 2008, Indepen- (313) 446-0367 or e-mail [email protected]. competitors is summed up by budgets,” Johnson said. Anderson said. “There is some dent Sector President Diana Aviv CRAIN’S DETROIT BUSINESS IS PUBLISHED BY the sales numbers, Harrison Some youth sports groups oper- consideration that there are other expressed uneasiness with that es- CRAIN COMMUNICATIONS INC. Meyer said. ate on shoestring budgets, but oth- CHAIRMAN Keith E. Crain assets available and she could pay timate, given that nonprofits were PRESIDENT Rance Crain “We’re confident we have the ers, like the Kensington Valley Hock- more back immediately.” being lumped into the same pot as SECRETARY Merrilee Crain best product and the best tech- ey Association Inc. in Brighton and The association has retained for-profits and governmental orga- TREASURER Mary Kay Crain Executive Vice President/Operations nology,” she said. “Ultimately, the Michigan State Youth Soccer As- Miller, Canfield, Paddock and Stone nizations, which could have high- William A. Morrow the consumer decides. They’ve sociation in Plymouth, each report- P.L.C. on a pro bono basis to repre- er instances of fraud. Group Vice President/Technology, Manufacturing, Circulation voted that they have confidence ed revenue of more than $1.6 mil- sent it in the matter, it said in its Regardless of the exact amount of Robert C. Adams in us.” lion in 2008, the year of their latest most recent newsletter. Vice President/Production & Manufacturing nonprofit fraud taking place, ex- Dave Kamis Daniel Duggan: (313) 446-0414, tax filings. Since the embezzlement, the as- perts agree it’s an issue that must Chief Information Officer [email protected] But the size of a nonprofit’s bud- sociation has put in place financial be addressed with tighter controls. Paul Dalpiaz get doesn’t dictate the size of prob- Corporate Circulation/Audience Development safeguards. Nonprofit boards, regardless of Director lems that can arise without due dili- It’s hired an outside accounting the organization’s budget size, have Kathy Henry gence, said Michigan Nonprofit G.D. Crain Jr. Founder (1885-1973) firm to do the bookkeeping, and new to look at many different ways to al- Mrs. G.D. Crain Jr. Chairman (1911-1996) Association President Kyle Caldwell. board treasurer Lindsay Aspegren, leviate risk, Caldwell said. EDITORIAL & BUSINESS OFFICES: “You can be a $10,000 operation co-founder and managing partner of 1155 Gratiot Ave., Detroit MI 48207-2732; (313) They should have transparency 446-6000 BANKRUPTCIES and still take on a $1 million liabil- Ann Arbor venture capital firm in all financial transactions, several Cable address: TWX 248-221-5122 AUTNEW DET ity.” Northcoast Technology Investors, will sets of eyes reviewing financials, CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the The following business filed for During 2007-08, the year after provide financial oversight and dis- regular board review of finances, Chapter 7 protection in U.S. Bank- third week of January, a special issue the fourth the Ann Arbor Amateur Hockey closure to the board and through a non-staff members reconciling the week of August, and no issue the third week of ruptcy Court in Detroit Jan. 22-28. Association discovered the fraud, December by Crain Communications Inc. at 1155 Chapter 7 involves total liquida- quarterly e-newsletter. books and regular audits, he said. Gratiot Ave., Detroit MI 48207-2732. Periodicals its enrollment and related fees postage paid at Detroit, MI and additional mailing tion. Knight was either treasurer or “For nonprofit boards, due dili- offices. POSTMASTER: Send address changes to were enough to keep it operating, an accountant for the association CRAIN’S DETROIT BUSINESS, Circulation The Neat Painters Inc., 4565 New- gence is their most important role, Department, P.O. Box 07925, Detroit, MI 48207- castle Drive, Clarkston, voluntary Anderson said. for a period of more than 10 years, regardless of their size,” Caldwell 9732. GST # 136760444. Printed in U.S.A. Chapter 7. Assets: $15,171; liabili- The association reported total Aspegren said. Entire contents copyright 2010 by Crain said. Communications Inc. All rights reserved. ties: $705,752. revenue of $848,592 for fiscal 2008 “For all nonprofits, when you Sherri Welch: (313) 446-1694, Reproduction or use of editorial content in any manner without permission is strictly prohibited. — Dustin Walsh ended June 30 and an operating have parties in the same position [email protected] 20100201-NEWS--0022-NAT-CCI-CD_-- 1/29/2010 6:15 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS February 1, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 23-29

laration’s Web site. professor. Public Schools under a new The group will focus on Karmanos Ⅲ Detroit Mayor Dave 10-year agreement. policy priorities: develop- Bing’s office has announced Ⅲ Wayne County Circuit Sale marks final Judge Robert Colombo Jr. dis- ing a sustainable source of the appointment of Tom Li- funding for the arts, devel- Cancer jana as group executive for missed ’s oping a Detroit land use finance under CFO Norman lawsuit against lawyer Mike strategy and advocating for White. He most recently Stefani over the disclosure of chapter in the an up-to-date public trans- Institute served as CFO for the Bing sexually explicit text mes- portation system. Group and COO of Arden Cos. sages, AP reported. Also, Albert Fields was made Ⅲ The Detroit Tigers will Nader wins Crain award appoints CEO group executive for plan- offer 2010 tickets at Comeri- Mobius story ning. ca Park that include all-you- Consumer advocate Ralph fter a 10-month Ⅲ Business Leaders for can-eat options. The tickets Nader received the 2010 Keith search, Gerold Bepler, Michigan are for seats in the upper he best-laid plans . . . mail and newspaper coupon Crain/Automotive News Life- A a thoracic oncologist, has hired suite level along the third T Mobius Microsystems giant Valassis Communica- time Achievement Award in a has been appointed CEO of former base line for $65-$75 and Inc. is no more. The tions Inc.’s lawsuit against presentation Tuesday dur- the Barbara Ann Karmanos ePrize exec- standing-room-only for $55- University of Michigan spinoff, competitor News America ing the Washington Auto Show. Cancer Institute in Detroit utive $65. which made silicon-based Inc. goes to trial in Detroit. The award is given annu- effective Matthew Ⅲ A survey of 70 top ex- devices to replace quartz- Jury selection begins ally to a public servant or today. Clayson as ecutives by statewide CEO crystal timing devices in Tuesday, and the trial is ex- citizen who has made pro- Bepler, director of group Business Leaders for computers, has been sold for pected to last at least six found contributions to the who was the Detroit Michigan finds 42 percent an undisclosed amount to weeks before U.S. District auto industry. director of Creative planning to increase hiring San Jose-based Integrated De- Judge Arthur Tarnow. Valas- “More than any other in- the Com- Clayson Corridor in Michigan over the next vice Technology Inc. sis in July obtained a dividual in North America, prehensive Center, effective Feb. 1. six months, an improve- Mobius was founded by $300 million verdict against Ralph Nader has been in- Lung Can- ment from the previous Michael McCorquodale in News America in a related strumental in saving lives,” cer Re- quarter’s survey, released 2004 and formerly head- case before Wayne County search Cen- OMPANY NEWS said Crain, Crain Communi- Bepler C in October, which reported quartered in Detroit. That Circuit Judge Michael ter at the cations chairman and the Ⅲ Troy-based Flagstar that 13 percent planned to year, the Michigan Economic Sapala; that is under appeal. Moffitt Cancer Center in editor-in-chief of Automo- Bancorp Inc. (NYSE: FBC) increase hiring. Development Corp. awarded Jurors in July found Tampa, Fla., will also serve tive News and Crain’s De- said it has raised $300 mil- Ⅲ State House lawmak- it a business tax credit of News America subsidiary as principal investigator of troit Business. lion through a previously ers are proposing an even- $4.3 million and said Mo- News America Marketing li- Karmanos’ National Cancer announced stock offering tual 8 cent increase in bius planned to invest able for both unfair compe- Institute Comprehensive Can- that ends Feb. 8. Michigan’s gas tax and a $12 million to grow its De- tition and tortious interfer- Dutch Leonard weighs in cer Center Support Grant. Ⅲ Detroit-based Com- 12 cent hike in the tax on troit headquarters. The pro- ence with business Bepler will take over for on J.D. Salinger’s influence puware Corp. (Nasdaq: diesel fuel as part of a pack- ject was expected to create practices. News America Ann Schwartz, who has been CPWR) reported third- age of transportation-fund- 1,594 jobs, 500 directly. took that case to the Michi- Detroit-based novelist El- interim CEO of Karmanos quarter net income of ing bills. But then the plans to grow gan Court of Appeals, which more “Dutch” Leonard talked since Dr. John Ruckdeschel $24.4 million, or 11 cents a Ⅲ Home prices in the in Michigan went awry. In has yet to review it, and the to Crain’s media reporter Bill left last summer. share, on revenue of Detroit area dropped by 2007, Mobius got a Series A companies also have litiga- Shea Friday about reclusive $229.9 million, compared to 0.7 percent from October to round of venture capital, tion in California. author J.D. Salinger’s death. net income of $35 million, November, according to the which required it to move its “I’ve read all his stuff. I ON THE MOVE or 14 cents, on revenue of national S&P/Case-Schiller headquarters to Silicon Val- loved it,” he said. “Why he Ⅲ Jeffrey $268.7 million in 2008. Home Price Index. ley. The Detroit location was Detroit Declaration group stopped writing, I’ll never Williams, Ⅲ Livonia-based Valassis Ⅲ A tentative date of closed and an Ann Arbor de- know. Maybe he didn’t.” seeks supporters online former Communications Inc. said it June 30 has been set for sign center opened. For the rest of Leonard’s CEO at will bring in-house the Greektown Casino Hotel’s But, McCorquodale, who A group of Detroiters is comments on Salinger, go to Ann Ar- management of its database exit from bankruptcy. will be the business manger promoting a shared vision www.crainsdetroit.com/blogs bor-based of 151 million addresses, Ⅲ The Detroit Financial of IDT’s new business unit, for the city’s future. HandyLab ending its relationship District has been added to said the Ann Arbor office Crafters of the Detroit De- claration are asking people BITS & PIECES Inc., is the with Princeton, N.J.-based the National Register of His- and its handful of employ- new CEO to commit to a focus on Ⅲ Lorraine Schultz, American List Counsel Inc. by toric Places, AP reported. ees will remain. All compa- at Arbor- transit, education, govern- founder and CEO of the Williams March 5. ny employees were retained based Ac- ment accountability and re- Women’s Automotive Associa- except CEO Ashok Dhawan. curi Cytometers Inc., replac- BITUARIES gional cooperation. tion International, is to be O ing co-founder and CEO The goal, according to the named the Barbara Cox An- GREEN TECH Ⅲ Gerald Atkin, who ran Jennifer Baird, who resigned. Valassis-News America Web site declaredetroit.word thony Automotive Woman Ⅲ Consumers Energy Co. is the Detroit office of McCann Ⅲ The Detroit Metro Con- press.com, is to play a role of the Year at the National moving ahead with two Erickson in the 1980s, died fight at federal court vention and Visitors Bureau in electing leaders who Automobile Dealers Associa- Michigan wind farms, one Dec. 1 of cancer. He was 73. has named Timothy The second act in one of share the group’s priorities. tion convention in Orlando in the Thumb’s Tuscola Ⅲ James Cline, former McCarthy, president of Soave the largest legal dramas in Last week, the movement on Feb. 14. Before founding and Huron Counties called Enterprises Transportation mayor of Royal Oak, died Michigan history opens had 1,200 signatories, 5,076 WAAI, Schultz was the ex- the Cross Winds Energy Park Group and Checker Cab, as Jan. 20 of complications Tuesday, when a federal fans on Facebook and more ecutive director of the Au- and the other in west its new chairman for 2010, from Alzheimer’s disease. portion of Livonia direct- than 15,000 hits on the dec- toLeather Guild of America. Michigan’s Mason County replacing Ilitch Holdings Inc. He was 95. CEO Christopher Ilitch. to be called Lake Winds Ener- Ⅲ Horace Gilmore, a for- Ⅲ Ilitch Holdings Inc. has gy Park. mer Wayne County judge brought on General Motors Ⅲ The Detroit Edison Co. and federal judge, died Jan. Co. public-relations veteran and a Traverse City-based 25. He was 91. Thomas Pyden as vice presi- wind power company have Ⅲ Theodore Napoleon Gra- dent of corporate communi- started operation of the Her- ham, longtime Detroit cations, replacing Karen itage Sustainable Energy physician, died Jan. 20. He BEST FROM THE BLOGS Cullen, who will move to a wind farm near Cadillac, was 80. which will supply electrici- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS senior advisory role with Ⅲ Manuel “Mike” Papista, ty to about 2,000 homes. the Ilitch companies. co-founder of law firm Lip- Ⅲ Rochester Hills-based Ⅲ Ann Arbor-based Bor- ton, Papista, & Garfinkle P.C. Foodies plan Midtown meat spot Dirty laundry in Charfoos case Energy Conversion Devices ders Group Inc. CEO Ron Mar- in downtown Detroit, died shall has resigned and will Inc. (Nasdaq: ENER) said Jan. 23. He was 79. Meet Will Branch If (Lawrence) be replaced in the interim that it and Enfinity Corp., a Ⅲ James Quello, former and“ Zack Klein, an Charfoos“ wants to air by Michael Edwards, execu- Belgium-based builder of general manager and vice unassuming pair out the laundry in court, tive vice president and solar energy projects, will considering their the firm will gladly go chief merchandising offi- collaborate on rooftop solar president at WJR AM 760 ambition to bring an there with him. That’s who later sat on the Federal old-world style the word from Charfoos cer. Marshall will be installations throughout named CEO of Great Atlantic Ontario in 2010. Communications Commission, charcuterie to & Christensen died of heart and kidney downtown Detroit. Managing Shareholder & Pacific Tea Co. J. Douglas Peters. Ⅲ Dr. Robert Mentzer Jr., THER NEWS disease Jan. 24. He was 95. ” former dean of the Wayne O Ⅲ Mary Ellen Riordan, first ” State University School of Ⅲ The Detroit Science Cen- female president of the De- Reporter Nathan Skid’s Detroit-area restaurant blog Reporter Chad Halcom’s blog on the legal business Medicine, has joined San ter is taking over the opera- troit Federation of Teachers, can be found at www.crainsdetroit.com/skid can be found at www.crainsdetroit.com/halcom Diego State University’s Bio- tion of the Detroit Children’s died Jan. 24 of heart fail- Science Center as a research Museum from the Detroit ure. She was 89. DBpageAD.qxd 1/26/2010 9:09 AM Page 1

YOU WORK ALL OVER. SHOULDN’T YOUR 3G? PUT YOUR BUSINESS ON THE MAP.

More small businesses choose Verizon Wireless than any other wireless carrier. Maybe it’s because of our map. The one that has the most 3G coverage in America. The one that makes for powerful, reliable solutions for your business. So you can be as productive on the road as you are anywhere else.

BUY ONE BLACKBERRY® AND GET ANOTHER FREE! Free phone must be of equal or lesser value. All phones require new 2-yr. activation on a voice plan with data pak $29.99 or higher.

BlackBerry Storm2™ Wi-Fi enabled, ultra responsive $179 99 $279.99 2-yr. price – $100 mail-in rebate debit card.

NEW! BlackBerry Tour™ BlackBerry Curve™ Fastest BlackBerry processor Wi-Fi enabled with with global capabilities support for popular apps $ 99 $ 99 99 49 $199.99 2-yr. price – $100 $149.99 2-yr. price – $100 mail-in rebate debit card. mail-in rebate debit card.

Let a Small Business Specialist find you the right smartphones at the right price.

Call 1.800.VZW.4BIZ Click verizonwireless.com/onthemap Visit a Verizon Wireless Communications Store

Activation fee/line: $35 ($25 for secondary Family SharePlan® lines w/ 2-yr. Agmts). IMPORTANT CONSUMER INFORMATION: Subject to your Major Account Agreement or Customer Agreement, Calling Plan, rebate form and credit approval. Up to $350 early termination fee/line and other charges. Device capabilities: Add’l charges & conditions apply. Offers and coverage, varying by service, not available everywhere. Network details and coverage maps at verizonwireless.com. While supplies last. Shipping charges may apply. Rebate debit card takes up to 6 weeks & expires in 12 months. Limited-time offer. Map doesn’t guarantee coverage, contains areas with no service, and generally predicts where rates & outdoor coverage apply. Equipment, topography and environment affect service. Small Business claim: Results based on an independent research study of 3,429 single-location firms with 1-49 employees using corporate-liable wireless service. Telephone interviews were conducted between 4Q08 and 3Q09 with the employee most knowledgeable of telecommunications service. © 2010 Verizon. 98718 DBpageAD.qxd 1/26/2010 12:36 PM Page 1

Need help putting the pieces together?

IRA

Investment 401(k) Charitable Management Planning

Disability

Exit Plan & Health Insurance

Long Term Care

Life Deferred Insurance Compensation Estate Plan Let our professionals help you take control of your financial future.

®

®

Plan. Prepare. Preserve. Protect. Helping you pass the torch to the next generation. Michigan · New York · Florida · California · Iowa 1-877-ASG-Ø-TAX (1-877-274-0829) www.AdvancedStrategiesGroup.com

Securities offered throughFirst Heartland Capital, Inc. Member FINRA, SIPC. Advisory services offered through Heartland Consultants, Inc. The Advanced Strategies Group, Inc. is not affiliated with First Heartland Capital.