Auto Bankruptcies Could Weaken Defense “So That’S a Big Increase,” the Plant Employs Nearly Temkin Said

20090608-NEWS--0001-NAT-CCI-CD_-- 6/5/2009 6:40 PM Page 1

www.crainsdetroit.com Vol. 25, No. 23 JUNE 8 – 14, 2009 $2 a copy; $59 a year

Page 3 MORE SMALL-BIZ LOANS The number of U.S. Small Google’s growth in Ann Arbor Business Administration 7(a) dips; few see it as sign of loans is on the rise again in Toolmakers’ new tack Michigan, although still trailing trouble numbers from one year ago: Inside Firms’ goal: Advance wind-turbine technology Troy law firm launches 168 177 173 188 162 BY RYAN BEENE rent-free tech incubator, AND AMY LANE BIG CHALLENGE TO BUILD Page 4 CRAIN’S DETROIT BUSINESS Two Michigan firms are work- 2008 70 43 82 102 102 Ex-Boyden players help DHR ing to launch a new wind-turbine component manufacturing ven- 2009 Jan. Feb. Mar. Apr. May expand into Michigan, ture that is a high priority for the Source: SBA state and could advance the indus- Page 5 try’s technology. The venture, spearheaded by Career Quarterly Sterling Heights-based MAG Indus- SBA lending trial Automation Systems L.L.C. and Recruiting via social media, Dowding Machining Inc. from Eaton Rapids, would have two main func- Page 12 tions: design and manufacture A wind-turbine rotor (above) with 49-meter blades dwarfs workers near its jumps in May state-of-the-art machine tools to hub. A joint venture between two Michigan companies — one in Sterling make massive wind-turbine com- Heights — aims to make blades like this out of carbon fiber. A few details: ponents with reduced time and A basic machine tool used to make dies has between three and five Loan guarantee cost, and build a new generation of axes (or angles of contact) and can be as big as a small bedroom. A machine to build turbine blades would essentially be a current machine wind turbine blades out of carbon 1 tool on steroids: the length of 1 /2 football fields and with 55 axes. fiber. raised, fee axed “The strategic goal is to drive The fully automated machine — not yet built — would lay carbon fiber strands around a mold, apply resins for rigidity and adhesives to make the BY NANCY KAFFER the cost of wind energy down to finished product lighter and stronger than current blades, but likely more CRAIN’S DETROIT BUSINESS the same level as carbon (based expensive. fuel),” said Roger Cope, president After a dismal six months, of MAG’s strategic business devel- the number of U.S. Small Busi- opment group and one of the ven- But there are obstacles. So far, specially designed machine tool- ness Administration-backed loans ture’s principals. “And right now, the principals have been unable to ing. is moving up — and SBA Dis- they’re very far apart.” secure financing. And the machine But after pursuing venture capi- trict Director Richard Temkin The endgame? To be the first to that would produce the blades, al- tal, bank and mezzanine funding, is hopeful the trend will contin- This Just In apply advanced, automotive-style though designed, has not been Cope says no one is willing to pony ue. manufacturing processes and ad- built to scale and tested. up. In May, the Sterling Heights gets help vanced materials to wind-turbine “We feel like we have the an- “It’s just a complete disaster,” SBA backed in effort to save auto plant components manufacturing. swers, and it’s an American an- he said. 102 loans The hope is that the venture, if swer and it’s a Michigan answer,” Still, state and company officials through its The city of Sterling successful, would attract original- said Jeff Metts, president of Dowd- are exploring financing for the 7(a) program, Heights, the Michigan Eco- equipment manufacturers in the ing Machining. ventures from a variety of sources. a marked nomic Development Corp. and wind industry and suppliers to set Cope says about $135 million is change from the Center for Automotive Re- up operations in Michigan. needed to fund a first plant and See Wind, Page 18 the first six search will collaborate on an months of its effort to save the Sterling fiscal year, Temkin Heights Assembly Plant after when the the successor company to SBA backed an average of 65 Chrysler L.L.C. emerges from such loans a month. Chapter 11 bankruptcy. Auto bankruptcies could weaken defense “So that’s a big increase,” The plant employs nearly Temkin said. 1,400 workers near Van Dyke National Defense Industrial Associa- contracts carry over to the new April’s numbers mirrored Avenue and Metropolitan Suppliers serve tion Michigan chapter could be au- companies that emerge from bank- May’s, with 102 loans made Parkway and produces the tomotive suppli- ruptcy, the question now becomes through the 7(a) program. The Chrysler Sebring and Dodge ers or how many defense contractors’ SBA backed 13 loans through Avenger. The bankrupt au- both industries manufacturers POWER MOVE suppliers may be lost. its 504 program in April and 19 tomaker recently invested in other industry Kenneth Dalto, president of in May, the largest number of BY CHAD HALCOM Up to $20M: more than $300 million in up- segments that re- Farmington Hills-based Kenneth J. loans made in a month since CRAIN’S DETROIT BUSINESS State utilities grades at the production site. cently diversi- to pursue Dalto Associates and consultant to July 2008. It is one of at least eight Bankruptcy restructuring and fied into the de- payments from the automotive supplier industry, While those numbers are up, plants companywide that supplier consolidation for General fense industry, GM, Page 4 said he expects to see significant lending is still down year over Chrysler attorneys have said Motors Corp. and Chrysler L.L.C. said Paul Curtis, defense fallout from the GM and year. In May 2008, the SBA will not transfer as assets to could disrupt the supply chains of NDIA-Michigan president. Chrysler restructuring. backed 162 7(a) loans, Temkin the new company, under the some defense contractors — par- As of this spring, NDIA-Michi- “Within a year or two after this said. terms of a sale approved last ticularly makers of trucks and gan has 2,016 individual members (restructuring) is complete, proba- SBA-backed lending ground week at U.S. Bankruptcy Court smaller vehicles, local industry from at least 70 different compa- bly a third or more of all compa- to a halt at the beginning of its in New York. leaders and analysts said. nies. That’s compared with around nies in the manufacturing supply fiscal year in October, with a 66 See This Just In, Page 2 Up to half of the companies rep- 1,600 people from 35-40 different chain are either going to be gone percent drop in the number of resented in the membership of the companies two years ago, Curtis — as in out of business — or loans made, just 81 that month, estimated. they’re going to be severely under- compared to 240 in October Most of the new members are capitalized,” he said. “That would 2007. suppliers, manufacturers, service have to affect the defense industry Temkin said he sees signs the industries and specialty compa- to some degree, because there are upward trend will continue. nies that recently branched out serious crossovers.” “The provisions of the Amer- into defense work, he said. For their part, Sterling Heights- ican Recovery and Reinvest- But since at least a portion of the based General Dynamics Land Sys- ment Act that SBA implement- 1,400-plus GM suppliers and hun- tems and BAE Systems, which is ed in the middle of March, I dreds more doing business with think, have made a significant NEWSPAPER Chrysler likely won’t see their See Defense, Page 19 See SBA, Page 21 20090608-NEWS--0002-NAT-CCI-CD_-- 6/5/2009 5:59 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 8, 2009

Scout, a small unmanned ground with established metro Detroit CORRECTIONS May 25 issue. THIS JUST IN vehicle, at the Camp Grayling Na- entrepreneurs. Attendees also According to sales figures from tional Guard base in Grayling. will have the opportunity to reg- Ⅲ There were several inaccura- General Motors Corp., the volume ■ From Page 1 The Scout finished a 64-kilome- ister in one of the many entrepre- cies in an article on the No of vehicles sold in 2008 at Jeffer- ter (40-mile), 12-hour test of Adap- neurial support programs offered Worker Left Behind program on son Chevrolet Co. was 353; Dick Luke Bonner, economic develop- tive Materials’ 150-watt fuel cell, through TechTown. Page M31 of the June 1 issue. Morris Chevrolet Inc., 451; Michael ment manager for Sterling which was powered by standard TechTown received a grant The article stated that the pro- Chevrolet Inc., 519; John Bowman Heights, said the three agencies propane. The Scout held a consis- from the New Economy Initiative for gram would be a casualty of state Chevrolet, 620; Holiday Chevrolet, and the governor’s office will tent pace of just more than five Southeast Michigan for up to $5 budget cuts. The program has, in- 573; and LaFontaine Chevrolet, 859. make a proposal for the plant to kilometers an hour. million over the next three years deed, lost $7.8 million in state Representatives from Dalgleish find a buyer after the Center for The fuel cell consumed three 8- to launch the Kauffman Founda- funds, but state funding accounts Cadillac Inc., Lunghamer GMC and Automotive Research completes ounce canisters of propane. A tion’s FastTrac program. The ini- for less than 5 percent of the pro- Underwood Chevrolet-Pontiac Buick some needed research, probably typical battery pack for the iRo- tiative is committed to create 400 gram’s budget, with the remain- also said their Cross-Sell num- within three weeks or so. bot delivers about 40 minutes of new companies in metro Detroit. der coming from federal sources. bers were inaccurate. Dalgleish The group proposal would continuous power. To register for the event, go to The article also incorrectly stat- said it sold 420 units, and Lung- come before Fiat Group SpA, or an- — Tom Henderson www.techtownwsu.org. ed the source of the program’s hamer said it sold 474. Figures for other prospective buyer if the au- — Dustin Walsh federal funding. The program is Underwood were not available. tomaker refuses to save the plant. TechTown to host workshop funded by the Workforce Invest- In addition, the list should not The sale of the new Chrysler Group Dime owners file Chapter 11 ment Act, Trade Adjustment As- have said Laethem Buick-Pontiac L.L.C. to Fiat was approved by an event for entrepreneurs sistance Act, and several other GMC has a location in Center appeals court Friday, but was The limited liability company federal programs, and the July Line. (See letter, Page 7.) The Ewing Marion Kauffman stayed until today to allow for a that owns the Dime Building at cuts will come from the Work- Also, sales figures used in the list Foundation’s FastTrac entrepre- possible emergency appeal to the 719 Griswold Ave. in Detroit has force Investment Act’s Dislocat- should have been attributed to neur training program is hosting U.S. Supreme Court. filed for Chapter 11. The 320,000- ed Worker program. The cuts Jeffrey Buick in Roseville, not for a free entrepreneurial workshop “If unsuccessful in securing square-foot building is roughly will amount to $56 million, not the entire Jeffrey Automotive Group. event, “FastTrac to the Future,” Fiat’s investment in the plant, we half occupied, according to 57 percent as stated in the story. A story accompanying the list on June 24 at the Community would certainly work with Ster- Bethesda, Md.-based CoStar Group. The state is locating new funding also was in error by indicating Arts Auditorium on Wayne State ling Heights to attract another oc- There are more than 20 tenants in sources for the program in the that General Motors will close University’s campus. cupant,” said Bridget Beckman, hope of replacing most of those dealerships based only on sales The TechTown event will fea- the building, according to CoStar. public information officer for the losses. On June 2, the U.S. Depart- volume. The OEM will be using ture workshops focused on differ- Waad Nadhir, the registered MEDC. agent of Griswold Properties L.L.C., ment of Labor announced that criteria based on a dealership’s — Chad Halcom ent aspects of startups. Work- Michigan will receive $49.9 mil- profitability, capitalization, shops called “curbside con- is also CEO of Detroit-based Bosc Equities L.L.C., a development and lion more in Trade Adjustment sales effectiveness and cus- sulting” also will be available, in- Assistance funding, and a por- tomer-satisfaction scores. Ann Arbor firm’s fuel cell sets cluding topics on logistics, med- property management company Ⅲ that will continue to operate. tion of those funds will be used A story on Page 3 of the June ical technology, clean and alter- for No Worker Left Behind. record with military robot El Segundo, Calif-based Wells 1 Crain’s incorrectly stated the native technologies. The daylong Ⅲ Cross-Sell dealership data pro- Fargo Bank N.A. is owed $19.1 mil- distance between structural Ann Arbor-based Adaptive Ma- event also will showcase best vided at least nine erroneous columns in a movie studio pro- lion in secured debt, according to terials Inc., which is developing practices in entrepreneurship. numbers for vehicles sold in ject planned to be built in Ponti- bankruptcy filings. There also is small solid oxide fuel cells for use The event is designed to let 2008 that were included on a list ac. The distance will be 260 feet $4.5 million in unsecured debt. by the military in the field, has would-be entrepreneurs discuss of 20 low-volume GM dealers in Building A and 215 feet in — Daniel Duggan set a new record for an iRobot their ideas and business plans that appeared on Page 10 of the Building B.

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June 8, 2009 CRAIN’S DETROIT BUSINESS Page 3

Focus: Meetings Ann Arbor Google’s growth dips and Conventions

cations and public affairs. Few worried about high-tech firm’s future Google got a 20-year Single Business Tax abatement from Michigan Economic Development BY BILL SHEA place the departed Grady Burnett to head the Corp., estimated to be worth $38 million, in re- CRAIN’S DETROIT BUSINESS local office, has about 250 employees in Ann Ar- turn for the creation of 1,000 jobs over five bor. years. Google Inc. arrived in Ann Arbor three years As Crain’s was the first to report last week, Failure to reach the hiring target means ago with promises of 1,000 new jobs within five Burnett left to become head of global sales for Google will earn less of the incentive, which years and immediately became a crown jewel social media giant Facebook.com, which is be- provides the tax relief incrementally by year in Michigan’s burgeoning high-tech sector. ginning a major advertising revenue push. based on how many people the company has It remains such, but the global economic cri- Google’s headcount is not likely to change hired. sis has slowed the company’s growth and hir- much any time soon. Google still is making significant money, but ing, including locally. “We’ve always grown the head count as busi- in the first quarter saw its first revenue decline The Mountain View, Calif.-based online ness needs it, and right now that’s what the since the company went public in 2004, and it Hotels ramp up discounts to search engine behemoth, which last week ap- business requires there,” said Jake Parrillo, pointed company veteran Mike Miller to re- Google’s Midwest manager of global communi- See Google, Page 17 lure scarce meetings, Page 9.

Company index These organizations appear in this week’s Crain’s Car dealer Detroit Business: Abbott Nicholson ...... 21 Ann Arbor Area Chamber of Commerce ...... 17 Arvin Meritor ...... 19 BAE Systems ...... 1 closings: Best Western Sterling Inn ...... 11 Center for Automotive Research ...... 13 Chrysler ...... 1 Citizens First Bancorp ...... 21 CORE Partners ...... 20 NATHAN SKID/CRAIN’S DETROIT BUSINESS ‘Immoral,’ CMS Energy ...... 4 Space in downtown Royal Oak is going vacant, including in the two buildings in the Detroit Automobile Dealers Assn...... 21 foreground (above) and one at Fourth and Detroit Marriott Renaissance Center ...... 10 Main streets (right). Detroit Metro Convention and Visitors Bureau . . . . . 9 ‘slow death’ Diversified Industrial Staffing ...... 12 Downtown Detroit Hotel Association ...... 11 BY DANIEL DUGGAN DTE Energy ...... 4 CRAIN’S DETROIT BUSINESS Freitag Event Design ...... 9 General Dynamics Land Systems ...... 1 If anyone has a view of the dif- General Motors ...... 1 ferent approaches Chrysler L.L.C. Google ...... 3 and General Motors Corp. are taking Henry Ford Community College ...... 14 to eliminate dealerships, it’s Holiday Automotive Group ...... 21 Colleen McDonald. Holiday Chevrolet ...... 3 On May 14, McDonald was noti- Down Hospitality Advisors Consulting Group ...... 9 fied that her two Chrysler dealer- Huntington Real Estate Group ...... 3 ships in Taylor and Livonia are Kenneth Dalto Associates ...... 1 scheduled for termination as part Lear ...... 17 of the automaker’s bankruptcy. Leftos.com ...... 4 The next day, she received a let- Lochmoor Chrysler Jeep ...... 21 ter from GM in- MAG Industrial Automation Systems ...... 1 dicating her McKinley ...... 12 NATHAN SKID/CRAIN’S DETROIT BUSINESS only other re- Meade Automotive ...... 21 town? maining dealer- Metro Detroit Chevrolet Dealers Assn...... 21 ship, Holiday Mich. Dept. of Environmental Quality ...... 17 Vacancies rise, rents fall as Royal Oak business district feels recession Chevrolet in Mich. Small Business and Technology Development Farmington Center ...... 14 MotorCity Casino Hotel ...... 11 BY CHAD HALCOM 2009 and office space vacancies visibility of where you see the va- Hills, was not on NextEnergy ...... 18 CRAIN’S DETROIT BUSINESS grew from about 18 percent to 32 cancies,” she said. the list of dealer- percent, ac- “Office was always traditional- ships to be North Woodward Tech Incubator ...... 4 Even downtown Royal Oak cording to ly the highest, with a bit of a gap transferred to Ritz-Carlton ...... 9 R.L. Polk ...... 12 can’t keep recession at bay forev- DEEPER LOOK CoStar. from the others, so that our va- the “new GM.” McDonald Schostak Bros...... 20 er. The city’s cancy rate was an average of that She opted to Ins and outs: Somerset Inn ...... 11 Experts say signs of the falter- Turnover in Royal Downtown De- voluntarily ter- higher figure with low figures in STAY SILENT? Special D Events ...... 9 ing regional economy are show- Oak, Page 20 minate her velopment Au- the other categories. But recently, Tomkiw Dalton ...... 20 ing up in the business district’s Streamlining: thority, howev- that’s a lot more evened out.” Chevy dealer- GM dealer list: Some want to Tourism Economic Development Council ...... 11 Easing the way ship, taking the retail vacancies, rental rates and er, reports The DDA generally breaks the keep it secret, Troy Chamber Hospitality Committee ...... 11 tenant mix. for businesses, vacancy is company’s offer Page 20 district’s tenant mix into four cat- Page 21 UM Institute for Labor and Industrial Relations . . . 13 Information from real estate less when egories: office space, retail, to buy back her Land swap: One W Industries ...... 19 database CoStar Group shows re- problem solved, measured in restaurant/food, and specialty inventory, Walsh College ...... 12 tail vacancies in the city’s central Page 20 addresses. services such as barbers and sa- rather than wait for the “wind- Woodward Gateway ...... 20 business district grew to more DDA Down- lons. The 15 percent figure is actu- down agreement” being offered in Young Basile Hanlon MacFarlane & Helmholdt . . . . 4 than 30 percent of available space town Manager ally an average of the first three which dealers can accept a lump in the first three months of 2009, Stephanie McIntyre said the sectors, with virtually zero va- sum and operate until October 2010. compared with 18 percent or so of downtown authority district’s cancies among the 20 or so ad- “If I had to choose one or the oth- Department index space in first-quarter 2005. overall vacancy rate is averaging dress for service tenants. er, I’d probably choose what GM is Office vacancies also surged, around 15 percent of the 460 or so “It’s definitely a challenge doing,” she said. “For (Chrysler) to BANKRUPTCIES ...... 4 kill a 30-year business in two from 5 percent or so in early 2005 business addresses in the district right now. And maybe worse this BUSINESS DIARY ...... 16 to nearly 25 percent of square for 2009 to date, compared with 12 year than in the previous one,” weeks is criminal, illegal, immoral footage in early 2009. percent or so four years earlier. said Donald Nahat, president of and flat-out wrong.” CALENDAR ...... 6 That outperforms the city of But, she said, the tenant mix is def- Royal Oak-based commercial real But, she said, for GM to expect CAPITOL BRIEFINGS...... 17 Royal Oak as a whole, where re- initely changing. estate broker Huntington Real Es- that a company can operate until CAREERWORKS ...... 14 tail vacancies grew from 25 per- “The vacancy rate hasn’t tate Group Ltd. the end of the year — while CLASSIFIED ADS ...... 16 cent to 34 percent from 2005 to changed as much as location and See Royal Oak, Page 20 See Dealers, Page 21 KEITH CRAIN...... 6 LETTERS...... 7 Hiring teens General Motors bankruptcy OPINION ...... 6 THIS WEEK @ Seasonal labor presents some The effects of GM's bankruptcy are being felt by PEOPLE ...... 15 other Detroit-area businesses. Read continuing HR challenges for small business. RUMBLINGS ...... 22 WWW.CRAINSDETROIT.COM Tips on dealing with them in Wednesday's Small Talk. coverage at www.crainsdetroit.com/gm. WEEK ON THE WEB ...... 22 20090608-NEWS--0004-NAT-CCI-CD_-- 6/5/2009 4:19 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 8, 2009 Troy patent law firm launches rent-free tech incubator

BY TOM HENDERSON the firm, with the possibility of ex- he said. “I’m professional service providers. Michigan.” CRAIN’S DETROIT BUSINESS panding as needed. motivated to “It’s nice to have another incu- Basile and his father, Andrew The firm also has an office run contribute bator in the market, especially if Basile Sr., who helped found the Young Basile Hanlon MacFarlane & by Basile in Palo Alto, Calif., in Sil- something to it’s free,” said Skip Simms, Spark’s firm and is still active, have a Helmholdt P.C., a Troy-based patent icon Valley. But the space here Detroit’s tech managing director of business ac- small investment fund named for a law firm, has created a small, rent- will be for Michigan companies. community.” celeration. “It’s a great offer. Be- main street in Silicon Valley, Cow- free technology incubator on site “Working in Silicon Valley and Basile said yond space, they’re offering coun- per Street Capital. Basile said that and has landed its first tenant. living in Michigan, I’m very fo- the incubator, at seling and advice, which is a nice while the goal of the incubator was Andrew Basile Jr. said there is cused on what makes Silicon Val- the southwest bonus.” not to find companies to invest in room for four or five technology ley a successful tech center and corner of Serving on the board of direc- from that fund, it could be an op- startups in the 1,200 square feet at Detroit an aspiring tech center,” Coolidge and Basile tors is Basile; Frank Germack, an tion down the road. West Big Beaver asset manager at J.P. Morgan and He said incubator companies will roads and called the North Wood- owner of the Detroit-based Germa- not be required to sign equity over real estate ward Tech Incubator, is for compa- ck Pistachio Co.; and Kevin Prokop, in exchange for the space, but that nies at the earliest, or pre-seed, a co-founder in 2007 — along with the firm would like the option to in- auctions stage that have yet to garner any Dan Gilbert, chairman of Quicken vest in companies as they grow. significant investment capital. Loans Inc. — of Livonia-based Rock- “This is not a business develop- 90+ Detroit Area Homes Selling Jun 15th - 23rd He said he based that decision bridge Growth Equity L.L.C., a private ment plan for our law firm. This is on talks with officials at Troy- equity company. Advisers include not profit driven,” said Basile. "3&""6$5*0/4 based Automation Alley and Ann Ar- Jim Croce, former CEO of Detroit- “The goal would be if the entrepre- AUBURN HILLS LINCOLN PARK bor Spark. based NextEnergy, and Terry Cross, neurs succeed, to plow any profits BLOOMFIELD TWP LIVONIA CHESTERFIELD MADISON HEIGHTS Incubators such as Spark Central a local angel investor, entrepre- we get back into making the incu- CLINTON TWP MARYSVILLE CLINTON TWP MELVINDALE in Ann Arbor, Spark East in Ypsi- neur-in-residence at Wayne State bator self-sustaining.” COMMERCE TWP MILAN lanti and TechTown in Detroit University and former Silicon Val- Zach Lipson, 23, co-founder of DAVISBURG MOUNT CLEMENS DEARBORN PONTIAC charge rent that, even though sub- ley entrepreneur who was one of Leftos.com, a Web site in beta test- DECKERVILLE REDFORD sidized below market rates, is still the early investors in Google. ing, moved into office space last 1JDLFSJOH3E #MPPNGJFME5XQ DETROIT ROMULUS EAST CHINA SAINT CLAIR SHORES too expensive for most startups. “I did business with a lot of law week. Leftos stands for lessons for Nominal Opening Bid: $100,000 EASTPOINTE SOUTHFIELD BLOOMFIELD TWP, MI t1JDLFSJOH3E ECORSE TAYLOR “We felt the need was to go to the firms in San Francisco and I never the opposite sex and is a free site Sprawling estate in Franklin Woods. Large FARMINGTON HILLS TRENTON home with many recent updates and multiple FERNDALE WARREN very bottom of the food chain and heard of any of them having incu- designed to improve dialogue be- living areas. Tile and hardwood floors FLAT ROCK WATERFORD help companies that are not quite bator space. It’s a neat deal,” Cross tween men and women. throughout, nice kitchen with double wall oven, GARDEN CITY WAYNE and a private backyard with a pool. 6BR 2.5BA, GROSSE POINTE PARK WESTLAND ready for the bigger incubators,” said. Basile met Lipson, a 2007 gradu- 7,030+/- sf. Built in 1961 on .69+/- ac. HARPER WOODS WHITE LAKE Open house: 1-4pm Sun Jun 7th, 14th and 2 LAPEER WIXOM he said. “I’ve known Andy for 20 years,” ate of the Eli Broad College of Busi- hours before sale. LEONARD YPSILANTI “There’s a recognized national said Prokop, a member of the ness at Michigan State University, at Sells: 4:45pm, Mon, Jun 15th LEXINGTON problem in relation to commercial- Crain’s 40 under 40 class of 2006. the TechNow ’09 conference in Roy- Detroit Commercial Investment Visit Our Website For izing early stage companies. Very “What got me excited quite frankly al Oak in April, which Lipson Complete Details Opportunities Also Available few angel investors or venture cap- was the opportunity to support en- helped organize. williamsauction.com/detroitoffice 5% Buyer’s Premium italists are willing to invest in ear- trepreneurs in Michigan. In to- “I was on the bubble about May Apply 800.801.8003 ly stage companies, so this is much day’s economy, you can’t have whether to go ahead with the incu- needed,” said Randal Charlton, ex- enough groups like this.” bator, but when I went to TechNow ecutive director at TechTown. Prokop said a long-term goal I was blown away. There must williamsauction.com “We’ll be happy to collaborate would be to grow companies to the have been 1,000 people there. I had with them.” point that they are ready for insti- no idea there were that many ea- Basile said tenants will get free tutional investment. ger tech people here,” he said. use of local phone, fax and Internet “We’re always looking for in- Entrepreneurs can apply at and a receptionist. They also will vestment opportunities,” he said www.northwoodward.org. get free advice from local industry of Rockbridge, “and we certainly Tom Henderson: (313) 446-0337, experts and discounted fees from have a bias for doing things in [email protected] Utilities to pursue up to $20M from GM

BY AMY LANE said Jeff Holyfield, CMS director of respond to falling sales and other CAPITOL CORRESPONDENT news and information. factors and help it weather the eco- The company also plans to pur- nomic downturn. LANSING — Michigan’s two sue recovery of the write-offs in The Detroit 3 and tier-one sup- largest energy companies may bankruptcy court. pliers represent 12 percent of De- take hits as a result of General Mo- CMS has estimated that an auto troit Edison’s overall sales but tors Corp.’s bankruptcy filing. sector-wide bankruptcy, affecting only about 6 percent of its net in- In the bankruptcy proceedings, not only automakers but also some come. DTE Energy Co. plans where possi- 175 large and small suppliers, Simons said DTE is “analyzing ble to pursue $15 million to $20 might cause the company to take a million in claims primarily for what operational changes GM $15 million to $30 million write-off, might have to make under bank- electricity supplied by Detroit Edi- based on the stage of the electricity ruptcy” and it’s difficult to predict son Co. billing cycle and what is owed to the impact on DTE. He said DTE The claims represent outstand- Consumers at the time. will work with GM “to provide the ing bills plus usage that hadn’t yet GM is Consumers Energy’s been billed at the time the au- largest auto-related customer and energy that it needs to meet its op- tomaker filed for bankruptcy, said Detroit Edison’s largest customer. erational and production require- Scott Simons, senior specialist, ex- Detroit Edison already had pro- ments.” ternal communications for DTE. jected a 6 percent sales decline this Separately, DTE is pursuing Jackson-based CMS Energy Corp. year that assumed at least one of some $6 million to $12 million in estimates it may need to take a $3.8 the Detroit 3 auto companies receivables related to Chrysler million to $7.5 million write-off would go through bankruptcy. L.L.C.’s bankruptcy. against revenue for what GM may Overall, DTE has been cutting Amy Lane: (517) 371-5355, owe utility Consumers Energy Co., costs throughout its operations to [email protected]

BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protec- untary Chapter 11. Assets: $0.00; liabilities: $23,764,098. tion in U.S. Bankruptcy Court in Detroit May 29-June 4. Un- Griswold Properties L.L.C., 719 Griswold No. 280, Detroit, der Chapter 11, a company files for reorganization. Chapter voluntary Chapter 11. Assets: $0.00; liabilities: $7,741,819. 7 involves total liquidation. Miller Park Townhome Condominiums L.L.C., 255 E. Brown Colossae L.L.C., 719 Griswold No. 280, Detroit, voluntary St. Suite 120, Birmingham, voluntary Chapter 11. Assets Chapter 11. Assets: $0.00; liabilities: $17,813,649. and liabilities not available. Griswold Building L.L.C., 719 Griswold No. 280, Detroit, vol- — Dustin Walsh 20090608-NEWS--0005-NAT-CCI-CD_-- 6/5/2009 4:18 PM Page 1

June 8, 2009 CRAIN’S DETROIT BUSINESS Page 5 Former Boyden players help Lawyers sued over lapsed lacrosse patent

BY CHAD HALCOM their 1998-2007 operation of Artz & of the liability. DHR launch Michigan expansion CRAIN’S DETROIT BUSINESS Artz, and after the merger with John McSorley, partner at Dickinson. Garan Lucow Miller P.C. in Detroit A Warren manufacturer of BY SHERRI BEGIN WELCH The issue came to light when and attorney for Dickinson, said lacrosse equipment is calling a CRAIN’S DETROIT BUSINESS Warrior was embroiled in litiga- the firm intends to argue it is not DHR hires Carr proverbial bad stick check on the tion with rival sports equipment liable for attorney-client relation- With several former employees law firm of Dickinson Wright maker SPX L.L.C. of Baltimore ships or actions of attorneys at a of Boyden Executive Search’s Michi- for sports group P.L.L.C. and two of its intellectual from 2004 until last year. Oppos- predecessor firm. Dickinson has- property lawyers. gan office in tow, Chicago-based DHR International also intends ing attorneys in that case discov- n’t yet filed a formal response. DHR International is expanding Warrior Sports Inc. seeks damages ered that Warrior’s attorneys had The Artzes are represented by to expand its searches for colle- of $33 million against the firm and DHR’s presence in the state and giate and professional sports or- missed a renewal fee on the Theresa Asoklis of Southfield- subsidizing the operation until member-shareholders John A. patent, which lapsed Oct. 29, 2004, based Collins Einhorn Farrell & ganizations from the Michigan Artz and John S. Artz in a lawsuit Michigan’s economy rebounds. office — and to that end has according to Warrior’s lawsuit. Ulanoff P.C. “We believe in the area, … the filed last week at U.S. District Court “As a direct and proximate re- Asoklis said the Artzes have hired former University of Michi- in Detroit. At issue is Warrior’s people … and the businesses of gan head foot- sult … all but a small fraction of contended in past court proceed- Michigan, and we’re willing to in- “scooped lacrosse head” patent the infringement alleged against ings that the patent fee went un- ball coach that the Artzes, father and son, al- vest,” said David Hoffmann, CEO Lloyd Carr, STX … was wiped out,” the law- paid through “unavoidable error” of DHR. legedly allowed to lapse before the suit contends. because of misinformation or an now an execu- erstwhile Artz & Artz P.C. merged The privately held company — tive vice presi- All sides agree that the fee oversight by a former employee. which claims to be the fifth-largest with Dickinson Wright in 2007. omission occurred long before The woman was “suffering in si- dent in DHR’s The company founder and pres- executive search firm in the coun- sports prac- Warrior was a Dickinson client, lence” from illness at the time and try, with revenue of “more than ident, Dave Morrow, has held a but Andrew Kochanowski, part- has since died. tice group. patent on the product since the $100 million” and a presence in Asia DHR had ner and shareholder at Southfield- Asoklis said Warrior won rein- and Europe — had many expansion mid-1990s, and Warrior has been based Sommers Schwartz P.C., statement of the patent last month. put together a an Artz client beginning at Brooks sites from which to choose when it sports prac- which represents Warrior, main- Chad Halcom: (313) 446-6796, Carr Kushman P.C., continuing through picked Michigan, Hoffmann said. tice group be- tains the firm still shoulders part [email protected] “We absolutely believe … the fore the beginning of the year auto industry will recover, and we with Merritt Norvell, former IBM think there are other viable indus- Corp. executive and former direc- tries in Michigan that have been tor of intercollegiate athletics at somewhat overlooked by the fact Michigan State University in Lans- that no other top national executive ing, and Pat Richter, former di- search firm has an office there.” rector of athletics at the Universi- DHR will invest “whatever it ty of Wisconsin. takes for us to be successful” in Along with Carr, it’s added to Michigan, Hoffman said. “We the group this year Gerry DiNar- think this is a unique opportunity do, former Louisiana State Univer- for us, and we’re seizing that op- sity and Indiana University football portunity.” head coach, and Val Belmonte, He projects the Michigan office former vice president, athletic will grow to $2 million to $3 mil- marketing and external rela- lion in annual revenue. tions at Hamden, Conn.-based Doug Allen, who had been manag- Quinnipiac University. ing director and The sports practice conducts president of Sulli- searches for both collegiate and van & Associates professional sports, recruiting in Birmingham athletic directors, head coaches when it operated and other executives. as a Boyden li- Carr “is one of the most cele- censee, left the brated and successful coaches in firm in mid-May the history of the NCAA,” said to join DHR as DHR CEO David Hoffmann. “His managing direc- character, integrity and leader- Allen tor of its new ship qualities are, in our opin- Michigan office. ion, second to none in the sports Three others left Boyden with world.” him: managing directors Jeff — Sherri Begin Welch Evans and Cynthia “Cyd” Kinney and Barb Swan, a partial owner and research director. The split was friendly, he said. That left only Damian Zikakis at “I think we just had different the Boyden office in Birmingham, views of what the future might look who now is operating it as a direct like. … I wanted to continue in an employee of a Boyden licensee in entrepreneurial vein and rebuild New York. Boyden’s business in Michigan.” Dennis Sullivan, the retired Allen had known Hoffmann founder of the local business and since 1989, when DHR did a search 28-year veteran of executive for him while he was an executive search, serves as an external ad- with the former conglomerate Tri- viser on business development, nova Corp. in Mt. Clemens. Real Estate Strategy Off Course? and Renee Brenner, a former Boy- Hoffman had put together a few den associate who’d been laid off remote practitioners in Michigan To stay on par in today’s economic climate requires Lease Renegotiation in March, is rejoining Zikakis as but seized the opportunity to bring senior associate, he said. Allen, Evans, Kinney and Swan on a solid real estate strategy. Plante Moran CRESA Tenant Representation At the beginning of this year, board. is an independent, fully integrated, real estate business out of Boyden’s local of- “DHR wants to invest in Michi- Incentives fice dropped by more than 50 per- gan — they are paying for every- consulting ﬁrm that will act as your unbiased advisor. cent, Zikakis said, after the compa- thing in Michigan right now to ex- Sale Leaseback ny posted close to $2 million in 2008. pand their capabilities at a time Contact us today to lower your real estate costs. To counter the declines, the when Michigan needs it most,” (248)223-3500 pmcresa.com Project Feasibility managing directors took a 10 per- Allen said. cent pay cut, laid off five other em- “Few people are willing to do ployees between January and that.” Lease Administration March, reduced health insurance DHR’s Michigan office will not coverage and cut the work week to focus solely on the automotive sec- Buyer Representation four days, said Allen. tor but will build on the searches “Eventually, it became apparent it’s already done for other indus- Project Management that we might not be able to sur- tries including universities, vive as a free-standing entity,” health care, life sciences and alter- Zikakis said. The three other man- native energy, Allen said. aging directors decided to join Sherri Begin Welch: (313) 446- DHR May 15. 1694, [email protected] 20090608-NEWS--0006-NAT-CCI-CD_-- 6/5/2009 5:22 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS June 8, 2009 OPINION 2005 2008 Project Upshot Project Recommendations Upshot The Michigan Chamber of In the first year, the process was credited 2007 state Preliminary ideas have touched on Final report Commerce and the Michigan with a new mindset among some state legislation shifts in education funding, Medicaid is due Oct. 1. Time to act Association of Realtors spent lawmakers, small changes in the 2006 creates the changes, methods to reduce prisoner $700,000 on consulting budget and a new process for setting Commission populations and save corrections costs, outheast Michigan is services to help state state spending priorities. Those included on restructuring state revenue sharing, so hungry for integrity government come up with tying funding to performance and agreed- Government analyzing state employee health care structural budget changes, using upon priorities. Although some vestiges Efficiency, a benefits and potential changes, state S and accountability that a process outlined in the widely may have lingered, the discipline required public/private efficiencies and personnel practices, after just three months on the read book The Price of to execute the book’s process appears to group. information technology and purchasing. job, Robert Bobb is a rock star. Government. have waned. The emergency financial Project manager for the Detroit Public 2006 Citizens Research Council of Michigan, in conjunction with the W.E. Upjohn Schools didn’t take a year to Institute, issues Michigan’s Fiscal Future report that quantifies the long-term study the problems. He assem- Project Upshot costs of Michigan’s structural deficit. bled a team he could trust, met The Grand Rapids Area Chamber of Commerce began a The Legislature Findings Recommendations Upshot stakeholders, studied the num- focus on Medicaid reform and cost containment as a and way to help structurally fix Michigan’s budget. The administration CRC, which began working Report wasn’t Elevated discussions of bers and started to act. chamber has cited Medicaid reform as one way the have yet to tackle on the issue in 2001, prescriptive, but structural deficit problems, Some schools will close. He state could find savings to lessen businesses’ tax major Medicaid found that nearly every did present ideas most notably in corrections, burden. reforms. area of the state budget to reduce the an area where lawmakers has fired or laid off adminis- faces spending pressure structural deficit, and the administration have trators and line workers. He is increases that outpace such as worked with the Council of outsourcing operations. He’s projected revenue growth. restructuring State Governments to 2007 Without substantive policy Michigan’s sales analyze the state prison reviewing all real estate deals. changes, structural and income taxes population and system and He launched financial investi- Project Recommendations Upshot deficits would grow to $6 and tackling look at strategies to reduce gations that have led to crimi- Gov. Jennifer Included tax restructuring to Granholm billion in the general fund reforms that recidivism and increase and $3.6 billion in the reduce spending public safety, as well as nal charges against current Granholm appointed a increase revenue, spending recommended a high-powered advisory cuts, examination of areas services tax, a School Aid Fund by 2017. on health care policy options to reduce and former school employees. panel headed by such as rising expenses of hastily and and corrections. corrections costs. He’s not trying to please former Govs. William public-employee benefits, as somewhat sloppily everyone. He’s curbing a deficit Milliken and James well as reform of how public constructed Blanchard that did services are delivered. version of which Project Upshot that, if not checked, will bring intensive study over a Others echoed some Price of was passed after Detroit Renaissance Inc. issues a report prepared by Recommendations the district to its knees. three-week period in Government themes: weeks of Public Sector Consultants Inc. that lays out are sitting on a Where’s Michigan’s emer- January to review the requiring measures of wrangling. The tax government reforms that in 10 years could produce shelf, says Public state’s situation and performance and sharing of was wildly $800 million in annual savings. The report focused on Sector. gency financial manager? Bud- offer services by local unpopular and was corrections, Medicaid, teacher retirement benefits and get cuts alone won’t solve this recommendations on governments and school ultimately repealed state employee health benefits. state’s problems. Structural how to avoid chronic districts. The report also and replaced with budget shortfalls. The noted that the sales tax an also-unpopular change must come. report was to serve as covers 20 percent less of surcharge on the Project Upshot As the adjacent summary a backdrop to the the Michigan economy than Michigan Business Detroit Regional Chamber Increased legislative discussion; no specific shows, Michigan has plenty of governor’s State of it once did, and that Tax that is still calls for an overhaul of the reforms yet passed. Separately, fiscal 2010 the State and budget services, a growing share of being debated. reports showing what needs to state corrections system budget recommendations from the governor addresses in the economy, were not Michigan’s income that would save more than and the House have included inmate be done. We just don’t have February. taxed. tax also increased. $800 million annually. reductions, and the Michigan Department of leaders with the political will Chamber suggests cost Corrections is continuing actions to control to do the job. savings could be applied prison population. The department on Friday Project Recommendations toward reducing the nearly announced a finalized list of closings this year State House Speaker Andy The Center Extending the sales tax to services; enacting a graduated 22 percent surcharge on the that includes five prison camps and three Dillon, Senate Majority Leader for Michigan income tax; broadening the base and lowering the rate of Michigan Business Tax. prisons. Mike Bishop, their most trust- released a state business taxes; considering tax increases on beer and report soft drinks; reducing corrections spending and reforming ed aides and Gov. Jennifer outlining corrections policies; developing a scorecard assessing the 2009 Granholm or Lt. Gov. John spending and performance of local schools and governments; requiring Cherry should lock themselves tax reforms greater consolidation and service sharing in schools and to fix the governments; and examining public sector pay, benefits and Project in a room and emerge only af- state’s staffing levels and adjusting them based on statewide and Lt. Gov. John Cherry heads effort to restructure state government, potentially ter they have agreed on a list of finances. national benchmarking. reducing the number of departments from 18 to 8. short-term and long-term reme- Progress to date Upshot dies to the state’s massive Upshot Seven core functions of state government have been Town hall meetings structural deficit. Recommendations have not been given broad consideration. identified: 1) Public safety; 2) education; 3) public are planned this It’s time to act boldly. If systems including transportation, utilities, water and summer for public Chrysler L.L.C. and General waste management, information technology and public input on what a Project Recommendations recreation; 4) promoting the health and well-being of streamlined state Motors Corp. can transform The Council of Michigan Were not publicly released, but one citizens; 5) environmental stewardship; 6) economic government should business operations in a few Foundations paid consulting firm result was the 2009 launch of a new opportunity and prosperity; and 7) efficient and look like. short months, the state should A.T. Kearney Inc. $170,000 to state Web portal, the Michigan effective government operation, decision-making and report on steps the state could take Business One Stop, aimed at making delivery of services. be able to match them. to better interact with business. it easier to do business in Michigan.

ISTOCKPHOTO.COM KEITH CRAIN: Let’s not forget what was said and promised Late last month at the annual don’t live up to their ex- The school district has issuing rhetoric forever and yet or in Detroit, and with the help of Detroit Regional Chamber get-to- pectations or their a budget, and he’s mak- never seem to be able to get any- the president of the City Council gether on Mackinac Island, there promises. I have heard ing the cuts that will thing done. It’s an inability to and hopefully a new slate of can- were a lot of good speakers and too many wonderful get the schools within reach consensus within member- didates for City Council, we’ll see some very honest and challeng- promises over the their budget. He’s clos- ship or too many folks with some a change in the ability to govern. ing speeches. decades and seen nothing schools, firing inef- sort of oar in the water who don’t We’ve got too many organiza- But now everyone’s back in ing to follow up on many fective teachers and want to alienate their clients, tions in this area that are all trying town, back to their day jobs, and of these lofty ideals. principals and, yes, friends or customers. to do similar jobs. We should take all too often nothing gets done be- I can’t help but be even seeking indict- That time has passed. a look at the results, and if they tween now and the conference very impressed with ments for people who It’s time to either get moving or haven’t got anything done, then next year. the interim head of the thought that the school perhaps get out of business and disband. The fewer the better. We’ve got a lot of high-powered Detroit Public Schools, Robert budget was a private trough that let others take over. Making mis- Our organizations need to be groups in this city, and if you hap- Bobb. He isn’t looking for publici- they could dip into whenever takes would be preferable to sit- accountable, effective and trans- pen to look at their objectives, ty. He understands what has to be they wanted. ting on your hands and waiting parent. The time for talk is over. you can’t help but be impressed. done and he is very quietly, Contrast that with organiza- for everyone to agree. Let’s see some action, or go away The trouble is that they simply quickly and effectively doing it. tions in this city that have been We’ve got ourselves a new may- and don’t bother us. 20090608-NEWS--0007-NAT-CCI-CD_-- 6/5/2009 5:05 PM Page 1

C t June 8, 2009 CRAIN’S DETROIT BUSINESS Page 7 M o w LETTERS E

Laethem dealership “For many potential homebuy- Clinton are the true perpetrators on Michigan’s budget, we need to taxed; when we make a phone call ers, the lack of cash available to ac- of greed by taking a noble idea and know that the Legislature is elimi- to another country, we are not really is alive and well cumulate the required down pay- administering it in an egregiously nating vital services to children, taxed. Taxing international calls would add $22 million in revenue. Editor: ment and closing costs is the major poor fashion. the elderly and the disabled. These As General Motors, Ford and impediment to purchasing a home. I am not a law professor — but cuts should not be our first option. These are just two of many Chrysler have struggled to prove Other households do not have suf- Mr. Mogk is, and he needs to tell We need to look at closing tax loop- senseless loopholes that could be their viability to customers, ficient available income to make the rest of the story. holes as well. closed without harming anyone, lenders and the government, there the monthly payments on mort- Dean Aldo For example, when we buy a soft and at the same time would pre- gages financed at market interest Pier Group Packaging L.L.C. drink at a restaurant, we are serve life-saving programs for the has been an unfortunate tendency Troy among pundits and the media to rates for standard loan terms. Fi- taxed; when we buy a soft drink elderly, services for the mentally paint the darkest possible picture nancing strategies, fueled by the from a vending machine, we are ill, programs for vulnerable chil- of our industry. Far too often their creativity and resources of the pri- State should close not taxed. Why? Taxing vending dren and our public safety system. vate and public sectors, should ad- data is taken out of context, or just machine purchases would net the Why are we not looking at these dress both of these financial barri- tax loopholes first plain wrong. state $25 million annually. options? ers to homeownership.” The truth is that many domestic Editor: Similarly, when we make a Robert Deneweth Former Presidents Carter and phone call within the U.S., we are Beverly Hills brands and vehicle lines are very In reference to various articles competitive, and the dealers that sell them are among the most successful small businesses in the country. That includes Ray Laethem Buick Pontiac GMC Inc., NationalCity.com/CashFlow which Crain’s mistakenly listed as one of the 20 lowest-volume Detroit-area GM dealerships in its May 24 issue. Our dealership is not in Center Line — it’s on the Detroit-Grosse Pointe border and has been since 1980 — and we re- tailed four times more new vehicles last year than you reported. That makes us one of the largest GM dealers in Michigan. I’m sure it was an honest mis- take. But you should know that we’ve had to reassure many of our Make sure longtime customers that we’re open for business, we’re far more successful than Crain’s reporting would have one think, and we are dedicated to helping General Mo- tors move from viability to true your cash flow prosperity. Jeff Laethem President Ray Laethem Buick-Pontiac-GMC Detroit Editor’s note: See correction on Page 2. is headed in Carter, Clinton share blame for meltdown Editor: the right direction. Regarding the May 18 Other Voices by John Mogk, “Wall Street greed brought down Detroit,” I find it interesting that there was no mention of the efforts by the Jimmy Carter and Bill Clinton administrations to increase home ownership in this country through deregulation allowing individuals who could not afford or did not have the credit scores to qualify for mortgages, cars loans and cred- No matter what goals you’ve set for your business, meeting them would be impossible it cards. without effective cash flow. At National City, we can help improve yours, by taking a close The administrations of Carter and Clinton were the enablers that look at how your business operates, and developing customized cash flow solutions. allowed this greed to flourish. With help from our business banking experts, we can help you collect receivables faster, Carter’s creation of the Commu- make payments more efficiently, and ensure access to credit when needed. nity Reinvestment Act and Clin- ton’s expansion of the CRA are directly related to why we are in this To learn more about how we can help you improve your cash flow, stop by any National City economic meltdown. branch, visit NationalCity.com/CashFlow, or call 1-866-874-3675. Furthermore, the Clinton-era document titled “The National Homeownership Strategy: Part- ners in the American Dream” ar- gues for creative measures to promote homeownership. This strategy began in 1994 when Clin- ton directed then-Housing and Ur- ban Development Secretary Henry Cisneros to create a plan. National City Bank, Member FDIC The following is an excerpt from ©2009 The PNC Financial Services Group, Inc. Credit products are subject to an approved credit application. 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June 8, 2009 CRAIN’S DETROIT BUSINESS Page 9

REPORTER’S NOTEBOOK

Daniel Duggan PULLING TOGETHER covers retail, Hoteliers unite efforts to real estate and hospitality. attract business in hard times, Call (313) Page 11 446-0414 or write dduggan @crain.com. meetings and conventions

ISTOCKPHOTO.COM Daniel Duggan Efforts push car reputation When it comes to the idea that Detroit should defend its role as the automotive capital, most of the noise revolves around the controversy over expanding Cobo Center in Detroit. Preserving the North American International Auto Show is considered a priority by most regional leaders. But behind the auto show, several other moves are being made to preserve this region’s reputation as the motor capital of the nation. One initiative comes from the Detroit Metro Convention and Visitors Bureau. The bureau is funded by a surcharge on hotel stays and has a mission to promote tourism and conventions. Add to that mission the promotion of the automotive industry. Chris Baum, senior vice president Unfilled hotels go all out of sales and marketing, said the organization has been focusing on a concept of “auto tourism.” Subtle and not-so-subtle moves are being made to attract and beef up events designed with a two-prong strategy, he said. First, attract tourists to the region. for business meetings Second, show the world that the image of Detroit 3 executives being hauled in front of Congress for a verbal shellacking is an incorrect image. Challenge of discounts This week Hot Rod magazine brings its Hot Rod Power Tour back to metro Detroit after an 11-year hiatus. The is to book scarce events event is estimated to make a $1 million impact on the area, according to the sharp pencils at East Lansing-based without losing money Anderson Economic Group. Baum points to the event as exactly BY DANIEL DUGGAN “Once a competitor drops what the bureau is trying to do. It’s CRAIN’S DETROIT BUSINESS their rates, then a hotel says, bringing at least 3,500 cars to the ‘I have to do it, too,’ ” said region on a Midwest tour of their hot arriott International Inc. Chuck Skelton of Ann Arbor- rods (filling up hotels), but also hotels in the area are of- putting Detroit on the map for an based Hospitality Advisors Con- M fering those who hold sulting Group Inc. “They’re dis- event that shows off the heritage of corporate meetings a 2 per- the automobile. counting, discounting, cent discount discounting, Message to America: Think about off their total hot rods, not bankruptcy. throwing in bill. all sorts of The television show “Monster Everyone’s NATHAN SKID/CRAIN’S DETROIT BUSINESS Starwood gimmes — Garage” will soon start filming “ Chris Bylott (left), on assignment from Manhattan-based Ernst and Hotels & Re- trying to everyone’s Young, works at the Detroit Marriott Renaissance Center. Corporate episodes for a 13-show series sorts World- “Monster Garage Motor City” to air trying to get a travel and meeting business can account for 75 percent or more of a wide Inc. this fall on the Discovery Channel, get a slice slice of a hotel’s revenue, one hospitality consultant says. hotels have Baum said. shrinking been offer- of a pie.” “So now, the name of the put together an event for the Later this summer, tours will be ing 4 per- given of the garage — where In Michi- game is to sell rooms. If they Society of Automotive Engineers. cent off. mechanics will turn small cars into shrinking gan, corporate can give away a meeting space It was dragsters, cars into lawn mowers and And Global events repre- and capture the room nights, scaled down whatever other crazy things they come Hyatt Corp. pie. sent roughly that’s still OK for the hotels.” and moved up with for that show. is offering ” 15 percent to In the past year, the dis- from Cobo 6 percent. Chuck Skelton, Hospitality It’s part of a series of events this 18 percent of counts and incentives have Center last Advisors Consulting Group Inc. summer called “Autopalooza August” A sort of revenue for been a lot more prevalent, year to the (www.autopalooza.org). The events peer pressure hotels, with said Carol Galle, president Ritz-Carlton include the Woodward Dream Cruise, is contributing to growing corporate travel — also down and CEO of Royal Oak-based in Dear- the Meadow Brook Concours price discounts, added perks in volume — representing an- Special D Events Inc. born. d’Elegance, NASCAR Sprint Cup at the and eased-up cancellation fees other 60 percent, Skelton said. “Venues are much more re- “In the Michigan International Speedway, and at hotels and meeting venues. “Hotels here but (also) all ceptive to negotiations right past, I Freitag the Rock Stars, Cars and Guitars II Hotel executives and ana- over the country are looking now,” she said. “Meetings are wouldn’t exhibit at The Henry Ford in Dearborn. lysts say that while the dis- at their numbers right now a lot more affordable than have even asked about the “It’s important that we have these counting is prompting new and trying to figure out what’s they were a year ago.” Ritz-Carlton because it would- kinds of events to showcase the real business, it’s also hurting off,” he said. “It’s corporate Denny Freitag, president n’t be on a budget most clients know-how that we have here in the profits as companies keep meetings. As a whole, it’s and owner of Detroit-based region,” Baum said. “Detroit is still hoping for a turnaround. down. Freitag Event Design, recently See Hotels, Page 10 the automotive capital of the world, and we need to show it.” 20090608-NEWS--0010-NAT-CCI-CD_-- 6/4/2009 2:48 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS June 8, 2009 Focus: Meetings and Conventions Hotels: Challenge of discounts is to book events and avoid a loss ■ From Page 9 could afford,” she said. “It was ac- she said. “Parking might be an im- tually one of the cheapest deals of portant aspect at one property but COMING SOON the hotels we looked at.” not another.” In addition to a lower price, she In many of the national incen- From Baptists to Boy Scouts, the Detroit area is playing host to a wide variety of trade shows, meetings and said, special ser- tives, a point is conventions. According to the Metro Detroit Convention and Visitors Bureau calendar, upcoming meetings and expected attendees include: vices such as tak- DUELLING DEALS made that hotels ing the front doors will ease the fees of- This year Links Inc. annual national area off the hinges — ten associated with conference, June 2010: 7,000 Air & Waste Management WEB EXTRA which hotels would cancellations. American Mensa Ltd.’s annual normally charge 2 percent Likewise, MotorCi- Association’s annual technical For a list of the largest conventions conference, June: 3,000 and events being held in metro gathering, June 2010: 1,600 for — were free. Marriott International ty Casino in Detroit National Association of Pastoral Detroit Economic Club’s national Detroit in 2009, visit The hotel, as a Inc. discount on total bills tries to be competi- Musicians national convention, July summit, June: 3,000 www.crainsdetroit.com/list. A bonus, put enough for corporate meetings tive in rates, but be- PDF of the list may be downloaded 2010: 4,000 discounted money ing flexible with National Baptist Convention USA for free. General Council of The toward the event to commitments is the Inc.’s national congress, June: Assemblies of God national youth allow for a cocktail 4 percent most important as- 55,000 Beyond 2009 convention, July 2010: 11,000 event. pect right now, said Starwood Hotels & Boy Scouts of America’s “Top Michigan DECA career Progressive National Baptist “They waived all Resorts Worldwide Inc. Randy Villareal, Hands” conference, August: 1,000 development conference, March Convention, August 2010: 12,000 kinds of fees,” she discount vice president of ho- National Funeral Directors and 2010: 3,000 SAE International convergence said. “They bent tel operations. Morticians Association Inc.’s National Association of Fleet meeting, October 2010: 10,000 over backwards His sales strategy national convention and Administrators, April 2010: 2,500 Michigan Council of Square & and did things that 6 percent is to relax cancella- exposition, August: 1,500 Michigan Credit Union League’s Round Dance Clubs national weren’t even in the tion fees and attri- League for Innovation in the annual meeting and expo, May convention, June 2011: 10,000 contract.” Global Hyatt Corp. tion charges — the Community College’s information 2010: 1,000 discount American Federation of Teachers Galle, who plans contractual obliga- technology conference, October: Coalition of Black Trade biennial convention, July 2012: corporate events, Note: Specific incentives vary tion to pay for un- 3,000 Unionists annual convention, May, 3,000 said the discounts at all hotels. used hotel rooms. Michigan Association of Non- 2010: 3,000 Blacks in Government annual vary for all of her “Your company Public Schools educational UAW constitutional convention, national training conference, clients. doesn’t know if it will be in busi- conference, October: 6,000 June 2010: 2,775 August 2012: 5,000 Likewise, sales directors say ness in the near future,” he said. they have a large toolbox of incen- “But if it is in business still, you’ll tives to throw at clients. And in the be having their meeting. The key “When Atlanta, Orlando and att has been in place since Janu- opened in Detroit in the past two current climate, many such tools to getting them to sign is to be con- Chicago are hurting, all of a sud- ary, he said, and the company com- years, with the amount of local are being used. fident about the commitment. den, we’re no longer the value des- mitted to extend it until mid-2010. business shrinking. Bethesda, Md.-based Marriott of- “If their accounts drop, they tination,” she said. “We’ve never “When this year began, we saw Local incentives might guaran- fers a 2 percent incentive on the need to feel like they’re not on the competed with Chicago on value the deficits, where 2009 and 2010 tee some business, but hotels master bill for an event, but there hook for a lot of fees.” before.” were going,” Vonderheide said. aren’t full. are many other specific things that But with national-level incen- Some properties may keep the “We talk to customers all the time, According to the Henderson- can be offered, said Wendy Hoek- tives, the Detroit area now has to incentives around for a while. we have task forces to study this, ville, Tenn.-based research firm water, regional vice president of fight harder than ever to draw A flat discount is a powerful and we looked at what will drive STR, the Detroit market was 55 per- marketing and e-commerce for a business to the area, said Judy Du- message, said Gus Vonderheide, decisions today. cent occupied in 2008, and the city 16-state territory that includes Four, director of sales and market- vice president of sales for Chicago- “It comes back to the budget. The of Detroit was 52.4 percent occu- Michigan. ing at the Detroit Marriott Renais- based Hyatt. economy is dri- pied. Hotels’ “It’s based on what they need,” sance Center. The 6 percent incentive for Hy- ving a lot of deci- break-even sions, and when point is we started looking At some point, around 50 per- at packages, “ cent to 65 per- we wanted you’re taking cent, Skelton to address on business said. cancella- Corporate tions, and only for the events and Host Your Next Wild Event when we travel contin- looked at sake of taking ue to make up numbers, 6 40 percent to at the Detroit Zoo! percent was on business. 50 percent of right.” ” revenue for He said Tony Mira, Ritz-Carlton the Ritz-Carl- that rather than ton in Dear- start at 4 percent and work up to 6 born, said General Manager Tony percent, Hyatt wanted to make the Mira. With individual travel cut best offer up front. back, more marketing efforts go to Vonderheide said the incentives corporate clients. He said the hotel are working. has offered incentives in targeted “We’ve seen more interest, more ways, as with the SAE event. requests for proposals and more But his hotel, like others, has its business in the books,” he said. limits. But Skelton said, “There has to “You can only go so low,” he be new demand from other parts of said. “At some point, you’re taking the country,” he said. “We’re eaton business only for the sake of ing ourselves.” taking on business. You have to The Southeast Michigan market make a profit.” If you’re searching for a wild new adventure, then you’ve come to the right place. has been difficult for hotels, to say Daniel Duggan: (313) 446-0414, the least, he said. Five hotels have [email protected] Whether it is a corporate picnic, cocktail reception, meeting or any other occasion, the Zoo has a variety of venues to set your event apart from the herd. Make your next event memorable by holding it at the Detroit Zoo. www.detroitzoo.org The Zoo’s exclusive caterer, Dining in the Wild, provides catering services for all functions.

For more information or to check on available dates, please contact the Detroit Zoo’s Sales Manager at (248) 541-5717 ext. 3305 or email [email protected]. 20090608-NEWS--0011-NAT-CCI-CD_-- 6/4/2009 3:54 PM Page 1

June 8, 2009 CRAIN’S DETROIT BUSINESS Page 11 Focus: Meetings and Conventions

CRAIN’S SEEKS BEST-MANAGED NONPROFITS FOR AWARDS ‘Like a business militia’ This year’s Best-Managed Nonprofit Contest will focus on ways nonprofits are meeting the Hoteliers band together in pursuit of customers during tough times challenges of the economy. It is better for applications to focus BY DANIEL DUGGAN about six months and is working attendees had a discussion on the room-nights, we can’t do it on strong execution of a single CRAIN’S DETROIT BUSINESS on strategies to go after industries benefits of the film industry and alone,” she said. “If we don’t initiative than to list several less- that will bring business to De- decided to work out a strategy to have other properties involved, developed efforts. As always, In an effort to work together troit, such as ensure more hotel business we’ll lose that piece of business. documentation is important. against the down economy, hotel filmmaking. comes to Troy. The idea of a Troy We need to make sure we are a Applications are due Aug. 10. Finalists will be interviewed in executives have been forming ho- They also work “restaurant week” was discussed, united front.” person by judges Nov. 3. tel committees and associations together on site along with its impact on the The visitors bureau has played Applicants must be a 501(c)(3) in Southeast Michigan communi- visits by deci- restaurants and hotels. a role in the formation of the Ster- ties. with headquarters in Wayne, sion-makers There is value to each region ling Heights committee and is Washtenaw, Oakland, Macomb or The city of Detroit formed such from large con- banding together, said Jim working with Dearborn and the Livingston counties. Each a committee six months ago, ventions. Townsend, executive director of properties near the airport, by application must include a while Sterling Heights will hold The group is the Tourism Economic Development bringing hotel executives togeth- completed entry form, a copy of its first meeting this week, and working on Council, a division of the Detroit er with local chambers of com- the most recent audited financial committees are being planned in ways to collabo- Metro Convention and Visitors Bu- merce to get things started, said statements and a copy of the most Villareal Dearborn and near Detroit Metro- rate on the cost reau. Michael O’Callaghan, COO for the recent IRS Form 990. politan Airport. of shuttles to transport hotel Hotels can pool their marketing bureau. Previous first-place winners are not Though the hotels are careful guests from the airport and to en- dollars for more high-priced ad- A committee of hotel execu- eligible; neither are hospitals, HMOs, medical clinics, business not to disclose any competitive in- tertainment destinations in town. vertising packages benefiting tives promoting a city in difficult and professional organizations, formation, executives say the Hotel groups have patterned their city, he said. times is nothing new nationally, schools, churches or foundations. committee meetings are useful themselves after the Troy Chamber “You can have hoteliers work- said Villareal, who ran the Millen- Winning nonprofits will be profiled ways to promote specific regions Hospitality Committee, a group ing together on strategies to tell nium Biltmore Hotel in Los Angeles in the Nov. 16 issue, receive a and discuss ways to secure multi- formed by the Troy Chamber of the story about their part of during and after the 1992 riots. special “best-managed” logo from hotel events. Commerce in 1989. town,” Townsend said. “There’s At that time the hotel commu- Crain’s for use in promotional “We’re like a business militia “A lot of people don’t under- value in that.” nity was recovering from the ri- material and will be recognized at of sorts,” said Randy Villareal, stand how competitors can come Susan Bullotta, director of sales ots and the hotel committee was a the Crain’s Newsmaker of the Year vice president of hotel operations together and meet on common and marketing at the Best Western strong voice on the needs of the lunch early next year. at the MotorCity Casino Hotel. “We ground, but we do and it’s been Sterling Inn in Sterling Heights, hotel industry, Villareal said. For application form, please e-mail come together in times of chaos great,” said Duane Swanson, di- said the new Sterling Heights “It’s common in most cities, [email protected] or visit and go back to till our own fields rector of operations for the Som- committee will help the Macomb like we did in L.A., to come to- www.crainsdetroit.com /nonprofitcontest. For information, in good times.” erset Inn in Troy and a member of hotels go after large sports tour- gether in times like this,” he said. e-mail Executive Editor Cindy Villareal is the chairman of the the committee since its incep- naments and events. “We’re all in this together.” Goodaker at [email protected] Downtown Detroit Hotel Association, tion. “If we bid on a bowling tourna- Daniel Duggan: (313) 446-0414, or call (313) 446-0460. which has been in existence for At a recent Troy meeting, the ment and they need a thousand [email protected] 20090608-NEWS--0012-NAT-CCI-CD_-- 6/4/2009 4:49 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS June 8, 2009

CONVERSATION WITH Quarterly A Crain’s Quarterlies: 2nd Mondays NEXT UP A closer look at issues and topics July 13: Policy Update important to Southeast Michigan Aug. 10: readers. Jobs/Economy

Renea Butler, Real Estate One Inc.

Human resource departments are I would say social being asked to offer more “ outplacement for employees who networks are the main way have lost their jobs in the struggling economy, often with shrinking we advertise and generate budgets. Renea Butler is vice president of E-ffective? all of our candidates. administration and human resources ” at Real Estate One Inc. in Southfield Jay Marshall, R.L. Polk & Co. and vice president of public relations for the Human Resources Association Businesses find recruiting via of Greater Detroit. Butler, a 30-year HR veteran, spoke with Crain’s reporter Ryan Beene social media works, often for free about how the economy has affected HR services. BY BILL SHEA CRAIN’S DETROIT BUSINESS How have career guidance services provided by companies changed he rise of social media — during the downturn? Employers in think Facebook, Twitter, general are trying to provide more T LinkedIn and YouTube — has information and more services to caught the attention of the busi- employees because they recognize ness community, which increas- the need for education and training. ingly is using the outlets as on- Particularly as companies line recruiting tools. downsize, they’re offering Instead of tedious hourly up- outplacement services, which would assist an employee with dates about the grindingly dull résumé writing, interviewing minutiae of mundane lives, techniques and helping them find metro Detroit companies and job jobs. I certainly think there are seekers have discovered that so- more of those services being cial media allows a focused, cost- provided to employees today. effective way of bolstering, and in some cases supplanting, tradi- was hired in December Have certain services been reduced tional print, broadcast and on- as marketing manager for Troy- or rolled back more than others as based Walsh College, thanks to a company budgets have shrunk? line recruiting. There are going to be organizations Even the Central Intelligence connection on that have fewer resources to offer. Agency and National Security LinkedIn.com, Resources that companies would Agency are using Facebook to re- a networking be using (as budgets shrink) would cruit. site that con- be things like using a third-party U.S. Web-based recruiting has nects people administrator to help assist with grown into a $522 million indus- professionally benefits and employee assistance try, and it’s predicted to grow at and academi- plans employees are offered, at a a rate of 8 percent a year, based Michigan University. cally relatively low cost to the employer. on 2008 Forrester Research data, About 25 percent of Karen Andrews, “I didn’t We outsource some of the HR reported Cobizmag.com, an on- Farmington Hills-based the firm’s chief want to be lost within an organization and we turn line Colorado business maga- design agency Eview 360’s job in- development officer. in the millions to EAPs (employee assistance zine. terviewees come from social me- “The candidates we’ve seen of people look- Meller plans) for employees to use for That includes traditional job dia contacts, CEO Melissa Cen- come though (social media con- ing out there.” counseling purposes, legal Web sites, but it’s harder to tra said. nections) are exactly what we’re She made a connection with questions, personal financial quantify the use of purely social “You can reach a great deal of looking for,” she said. someone at Walsh on LinkedIn, situations. The EAP has a lot of networking sites, which typical- people through social network- The company is adding short and hers was the first résumé for resources available to help. In some ly are free. ing, and you can also gain a lot video interviews with current the job (of hundreds) that wasn’t cases, people are doing away with Southfield-based automotive more referrals that way,” she employees to McKinley’s social posted yet. She was able to build their entire human resources data analysts R.L. Polk & Co. has said. “In addition, the word media pages to show prospective a rapport through social media department. an interactive career portal about the company hiring candidates what it’s like to work with the recruiter and eventual- What types of career services should (polk.standoutjobs.com) that spreads rapidly, which generates there. ly landed the position. companies be providing, even in an links to more than 50 social net- unsolicited inquiries. Instead of “We want it to be an authentic Meller cautioned that being environment of cuts? I know that in works. incurring the cost of placing an feel of what it’s like to work with first and being savvy with social our organization, we have people “We also ad, you can use your network to us,” Andrews said. The spots are networking is helpful, but being with such long tenure that they use Twitter, spread the word and help you being made with a $200 Flip digi- qualified for the job is more im- haven’t written a résumé in years. Facebook and identify top talent.” tal video camera. portant. They need job resources, direction MySpace to Unlike recruiting-specific The companies using social “LinkedIn got me there, but it to job fairs or online resources such broadcast our online resources, such as media to recruit are as varied as was a combination of factors as Monster.com or CareerBuilder. opportunities. Monster.com and those who use it for play. that got me the job at Walsh,” Employers should be helping people I would say so- CareerBuilder.com, most social For example, Troy-based Diver- she said. to make the transition, and it cial networks networking sites are free. They sified Industrial Staffing Inc. has Others remain comfortable doesn’t always mean that they have are the main can be set up in minutes and are been posting job openings on so- with traditional job-search to give them big buyout packages. way we adver- relatively easy because they’re cial media Web sites for the past methods. They can assist them … by doing Marshall tise and gener- designed for general use. month. The company is a head- Farmington resident and cer- some online training or holding McKinley Inc. seminars with mock interviews. ate all of our candidates,” said Ann Arbor-based , hunter for clients seeking to fill tified public accountant Dave Jay Marshall, Polk’s manager of a national real estate firm, has skilled jobs, such as machinists Schneider is looking for a job as talent acquisition. hired 150 people this year and ex- and welders, in the construction, a staff or senior accountant, or The company’s use of social pects to hire 150 more. Much of manufacturing and logistics in- being an assistant controller. He If you know someone media for recruiting recently the recruiting will be done dustries. doesn’t use social media. interesting in auto suppliers, steel helped it become a winner in the through the firm’s various on- Those looking for jobs are in- “I guess I am not familiar with industry or higher biennial Arbor Awards for Ex- line tools, including Facebook. creasingly turning to their social how the social networking education Ryan cellence for innovative or best McKinley began using social networking in addition to tradi- works,” he said. “I think ac- Beene should resources in human resources networking outlets to recruit in tional online recruiting sites. counting jobs are found using interview, call (313) management, sponsored by February and has discovered “With this job search, I didn’t the traditional approach; howev- 446-0315 or write Northville-based human re- that the yield ratio of inquiries want at all to look on Monster er, I could be mistaken.” [email protected]. sources consulting firm The Ar- to actual interviews is extremely and HotJobs and all the popular Bill Shea: (313) 446-1626, bor Consulting Group and Eastern high, about 75 percent, said sites,” said Brenda Meller, who [email protected] 20090608-NEWS--0013-NAT-CCI-CD_-- 6/4/2009 4:25 PM Page 1

June 8, 2009 CRAIN’S DETROIT BUSINESS Page 13

Career Quarterly World Famous Trademark- Future autoworkers will need broader skills WorldClassOpportunity BY RYAN BEENE More than 24,000 hourly produc- Chrysler, GM and the supply base, CRAIN’S DETROIT BUSINESS tion workers were projected to be “you could see a lot of jobs” return- Ever Dream of Owning hired at the Detroit 3 through 2016, ing when demand picks up. While the automotive industry fueled by increased attrition from The key issue is when that will your own business? is going through very tough times, buyouts and retiring baby boomers. be, which nobody knows for sure. industry observers say hiring will While the impact to these figures Donald Grimes, an economist The 7-Eleven Franchise System* offers eventually in- from the latest with the University of Michigan’s In- individuals to operate their own ready-to- crease and new round of plant stitute for Labor and Industrial Rela- operate neighborhood convenience store workers must be What we’re looking closures at tions, says automotive firms could under the auspice of a world famous ready. “ General Motors increase hiring in the future, but it trademark. We take an active role in the New hires at ... is a Corp. and won’t be for at least five years and franchisee’s business because our at automakers Chrysler L.L.C. is those hired will have knowledge in success is predicated on their success. and suppliers two-year unclear, the re- specialized subjects such as alter- will need ad- quirements of native energy. But as an overall Contact us today vanced skill community any new hire sector, the industry will not hire a to see if you qualify: sets and would remain large number of workers. strong educa- college degree the same. Suppliers that survive their cur- Call 630-366-3328 tional back- Production rent revenue glut would be in a po- grounds in en- to even work workers will sition to win more business, which Or visit us at gineering and need high lit- could also boost staffing. www.7-Eleven.com technical on the line. eracy, math “The ones that are surviving fields as produc- ” and computer will probably be hiring because tion work in fac- David Cole, skills to oper- they’re going to be getting a bigger tories becomes Center for Automotive Research ate high-tech piece of the business,” Grimes * Moderate financial resources and business experience are required to franchise a store more technology- automation said. based and multidisciplinary. used on assembly lines, as well as Ryan Beene: (313) 446-0315, “The sustainable jobs that are strong communication skills for [email protected] going to remain are going to be work that will become increasing- very competency-based,” said Kim ly team-based, the study found. Korth, president of automotive The study projected that nearly analysis and forecasting firm IRN 5,000 engineering and technical Inc. in Grand Rapids. “They’re go- workers would be hired through ing to be in program management, 2011, and more than 8,800 by 2016. higher-level manufacturing capa- One automaker said the most de- bilities — that’s what’s likely to sirable engineers are “systems survive in Michigan in particular.” thinkers,” or those that are able to David Cole, chairman of the manage overall systems in power- Ann Arbor-based Center for Automo- train or electronics in cars and tive Research, agrees. trucks. “What we’re looking at as a mini- Engineers with experience in mum skill-level requirement is a such alternative powertrains as two-year community college degree diesel, fuel cell and hybrid-electric Expands International Capabilities with the to even work on the line,” Cole said. systems and energy management “So we’ve got the potential for sig- technologies are also in high de- Addition of Two Leading Business Professionals nificant jobs but a significant up- mand. skilling and upped education re- Electrical engineers also are like- Wim van Acker Bryan A. Becker quirement for those workers.” ly to be needed. As the study point- A CAR study released in 2008, ed out, automakers and suppliers Wim is a recruiting expert who Bryan joined The Hunter Group called “Beyond the Big Leave: The lack the ideal amount for the con- has built high performance following a notable career in Future of Automotive Human Re- stantly growing number of electron- management teams for a variety public accounting and executive sources,” surveyed human- ic systems and features in vehicles. of companies. Wim’s consulting search. He joined Ernst & Young resources executives at the Detroit Automakers and suppliers alike career took him throughout the and rose to the ranks of assurance 3, foreign automakers and many have cut employment to the bone world, with engagements in partner, managing a variety of tier-one suppliers including Conti- to survive the market downturn Europe, South America and client industries and maintaining nental AG, Cooper-Standard Automo- and eventually will have to in- North America. Wim has other leadership roles within the tive Inc., Denso International America crease hiring when demand re- extensive experience in the Engineered Products firm. Upon retiring from Ernst & Young, Bryan joined the Inc., and Johnson Controls Inc. The sumes. industry, the Integrated Logistics sector, the Energy executive search profession, building on the executive study found that even as auto in- “Even if you think we’re going and Waste Management sectors, especially with placement skills he gained from placing executive talent dustry jobs in all areas of the busi- to be in a 12 million or 14 million ness decrease over the next decade, (vehicle sales) world going for- regard to renewable energy sources, and the with clients and developing and mentoring staff. Member the industry is still expected to ward … they really do not have an Automotive Industry. He is fluent in six languages. of the Michigan Association of Certified Public Accountants. hire more than 45,000 new workers ability to execute their business [email protected] [email protected] across all areas through 2016. models with the amount of staff As a caveat, Cole said the eco- they have right now,” Korth said. nomic crisis and turmoil at au- “So at some point they’re going to The Hunter Group... tomakers and suppliers would have to start adding jobs back.” your executive push the hiring projections out a Cole said the industry is at a de- few years, but the demographics of pression level of sales right now, recruitment partner the study would remain close to and depending on the structural the same. changes happening now at world-wide.

NOMINATION DEADLINE DRAWING NEAR Do you know a woman who is poised to make a difference in her company or industry in the next year? Or one who had an innovative idea or developed an innovative practice? If so, she could be a candidate for Crain’s Detroit Business’ “Women to Watch,” which will be published Sept. 7. The Hunter Group, L to R: Ellen Stamy, Sherry Muir Irwin, James M. Lionas, We’re looking for businesswomen of accomplishment at all Wim van Acker, and Bryan A. Becker, CPA. career stages. Nominations should focus on a specific current activity, rather than career accomplishment over an The Hunter Group develops innovative search solutions for forward LLC extended period of time. thinking, dynamic organizations in a variety of industries, International Executive Search Nominations are due June 15. To nominate, visit from health care and high tech to alternative Governor's Place • 33 Bloomfield Hills Parkway • Suite 242 www.crainsdetroit.com/nominate. energy, professional services and Bloomfield Hills, MI 48304, U.S.A. For questions about the criteria, contact Executive Editor Cindy Goodaker at Tel: +1.248.645.1551 (313) 446-0460 or at [email protected]. For help with the forms, manufacturing. contact Kim Winkler at (313) 446-1652 or [email protected]. www.huntergroup.com 20090608-NEWS--0014-NAT-CCI-CD_-- 6/4/2009 4:24 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS June 8, 2009

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

Help for EMPLOYMENT CALENDAR Companies have trouble HFCC seeks adjunct faculty To register, go to www. employmentguide.com, click on job seekers Henry Ford Community College is job fairs and scroll down the list filling some positions seeking well-qualified individu- to find this fair. Then, click on it als for part-time teaching oppor- for details and to register. areerWorks is a weekly tunities in anatomy and physiol- Companies are having a hard of the industry. At the same time, time hiring for some positions engineering companies are hav- collection of advertis- ogy, chemistry and general How to start a business C ing, news and informa- biology. A recruitment fair will despite growing unemployment, ing a hard time replacing re- said Melanie Holmes, a vice pres- tirees. tion geared toward readers in be held 3-6 p.m. June 15 at the Ad- The Michigan Small Business and ministrative Service and Confer- ident with staffing company Man- And in some instances, Ameri- career transition or looking Technology Development Center is ence Center. Use south entrance. power Inc., which surveyed em- cans just aren’t as willing to per- for new jobs. presenting a workshop 6-9 A minimum of a master’s de- p.m. June 18 at Oakland Coun- ployers on hard-to-fill jobs. form certain tasks, Holmes said. Included in our coverage: gree in biology or chemistry is ty’s executive office building, That’s due to a combination of The list of positions employers “CareerTransition,” high- required. Applicants should 2100 Pontiac Lake Road, Wa- factors. Some industries face said they had the most difficulty lighting a person who has bring copies of their résumés and terford Township. surging demand. In health care, finding someone for included: made a successful leap from unofficial transcripts. Before at- Topics include how to make aging baby boomers are over- Engineers, nurses, skilled and one profession to another; a tending the fair, applicants smart decisions to move for- whelming the field, while there’s manual trades, teachers, sales calendar of job- and training- should complete an online appli- ward, entrepreneurial skills, a shortage of qualified nurses to representatives, technicians, related events; and news sto- cation at http://jobs.hfcc.edu/ business feasibility and busi- teach nursing students, Holmes short-haul drivers, IT staff, la- said. In other fields, such as engi- borers, machinist/machine oper- ries affecting the job market. account_login.asp. ness formation. Cost is $30 per person. Reg- neering, new “green” energy ini- ators. CareerWorks is also online. tiatives are expanding the scope The Associated Press On our Web site, at ister online at Back to work job fair www.oakgov.com/ www.crainsdetroit.com/ Fox 2 News and Employment- careerworks, you can post an Guide.com have combined efforts anonymous résumé and at- to bring together job seekers CAREER CALENDAR GUIDELINES tract employers. You can with companies seeking workers scan the newest jobs from our Hosting a job fair, holding a CareerTransition at a Putting America Back to seminar on starting a business area or all of Michigan. You Work job fair 9 a.m.-1:30 p.m. or résumé writing, or helping job can set up e-mail alerts so June 17 at Lawrence Technologi- seekers in some other way? Name: Thomas Persinger, 39. whenever a job that interests cal University, 21000 W. 10 Mile E-mail announcements to Gary Education: Associate’s degree in general you is posted, you’ll know Road, Southfield, in the Buell Piatek at [email protected] or studies from Macomb Community College, about it. Management Building. Major Jeff Johnston at nursing assistant certificate from American [email protected]. Events Employers can post jobs or companies participating include Red Cross and a phlebotomy certificate from should be focused on helping a MedRight Inc. He’s currently pursuing an as- search résumés for talent AT&T Solutions, Beaumont job seeker find employment and sociate’s degree in nursing at MCC. they seek. Hospitals, Colonial Life Insurance, be open to the public or to Flagstar Bank, Home Depot, Radio alumni of a college. Past career: Checking fixture engineer for Disney and others. 10 years at Stellar Engineering Inc. in Warren. New career: Home health aide and phlebotomist for Optimal Care Inc. in Bingham Farms. Thomas Persinger Why he decided to make the switch: “Due to Former career: the economy and reduction of manpower CAREER MOVES Checking fixture throughout the automotive industry, I was engineer laid off. I have always had an interest in ADMINISTRATIVE New career: working with individuals to help them Home health aide maintain their health status and indepen- Wanted: Marketing Sales Assistant and phlebotomist dence. Discussions with my family and sis- Supports sales and interactive executives. ter — who is a registered nurse — helped solidify my decision to pursue a career in Duties: Preparing marketing/business development materials; the medical field.” Scarborough and Arbitron research; maintain content, sales and How he made the transition: “It’s still a marketing for core digital products; basic administrative tasks; work in progress. Optimal Care Inc. took a support/facilitation for outside events chance on me. Their leadership and nurs- Qualifications: Strong organization; experience with Internet ing staff helped me gain experience work- marketing and/or PR; impeccable written/oral communication skills; ing in people’s homes and provided me with continued training to help refine my solid math; attention to detail; meet deadlines under pressure; MS skills. They’ve also helped in supporting Office proficient; able to work in team or independently and guiding me to gain the education I will Send resume and cover letter to [email protected] and need to become an outstanding R.N.” [email protected]. No telephone calls please. Obstacles overcome: “I have had to endure Greater Media Detroit is an Equal Opportunity Employer all the difficulties that go along with loss of income. Going from an automotive-based career to one in health care is a major TECHNICAL Call Us For Personalized change and daily learning experience for me. Good communication has been the key Lawrence Tech’s Engineering Entrepreneur in Residence will foster an entrepreneurial Service: (313) 446-6068 mindset among students and faculty, develop an engaged network of area entrepreneurs to to making my patients, who may be more assist in University efforts, advise start-ups and aspiring entrepreneurs, and pursue addi- familiar with female caregivers, more com- tional funding for entrepreneurship programs from individuals, corporations, foundations CLOSING TIMES: Monday 3 p.m., and government agencies. Applicant must have a minimum of a 5-year proven record of ac- one week prior to publication date. fortable and willing to accept my help.” complishment as an entrepreneur and leader with experience in successfully starting and Please call us for holiday closing times. Advice for others: “Don’t settle. Sometimes growing a technology-based company. Must have an engineering or technology back- ground and have been involved in engineered product development, intellectual property FAX: (313) 446-1757 people think they are stuck where they are, creation and technology transfer. Must have the ability to teach college level courses to en- E-MAIL: [email protected] but through hard work and determination, gineering students and have an earned Bachelor’s degree (B.A., B.S.) A graduate degree is that doesn’t have to be the case. Find some- preferred. Send resume and cover letter to Mark Brucki, University Advancement Office, INTERNET: Lawrence Technological University, 21000 West Ten Mile Road, Southfield, Michigan www.crainsdetroit.com/section/classifieds thing you enjoy. Even if the stress is over- 48075 or by email at [email protected]. Confidential Reply Boxes Available whelming for a year or two, it will pay off tenfold when you finally achieve your PAYMENT: All classified ads must be prepaid. Checks, money order or goal.” Crain’s credit approval accepted. If you have made a similar change in your CRAIN’S MARKET PLACE WORKS! Credit cards accepted. career, or know someone who has made an To Place Your Ad Call See interesting transition, contact Andy Crainsdetroit.com/Section/Classifieds Chapelle, managing editor at Crain’s Detroit (313) 446-6068 or Fax (313) 446-1757 for more classified advertisements Business at [email protected]. 20090608-NEWS--0015-NAT-CCI-CD_-- 6/4/2009 4:49 PM Page 1

June 8, 2009 CRAIN’S DETROIT BUSINESS Page 15

PEOPLE ARCHITECTURE independent director, GMAC Financial tor of litigation, Masco Corp., Taylor. president of Deloitte, Detroit; Joseph Services, Detroit; also Michael Car- IN THE SPOTLIGHT Paquette Jr., retired chairman of Peco penter, principal of Southgate Alter- MARKETING Energy, Philadelphia; Philip Lochner native Investments, New York, N.Y.; Dexter-based ReCellular, a Jr., director of Clarcor Inc., Franklin, Scott Lange to executive creative di- collector and processor of used Tenn.; Michael Monahan, president of and Mayree Clark, director of Stanford rector, Wunderman-Team Detroit, De- cell phones, has hired Stephen Monahan Enterprises L.L.C., Bloom- Management Co., Menlo Park, Calif., troit, from creative director, Organic field Hills; Percy Pierre, vice president both named independent directors. Manning, 57, as CEO. Manning replaces Inc., Detroit. and professor emeritus of Michigan founder Chuck State University, East Lansing; Ken- neth Way, retired chairman of Lear Newman, who NONPROFIT Corp., Southfield; and John Yasinsky, will remain retired chairman and CEO of Omnova chairman. Patrick Lindsey to Solutions Inc., Fairlawn, Ohio. Manning most director of gov- Gerwing Weingartz recently served ernment affairs as senior vice and external com- Jeff Gerwing to director of operations, munications, Fo- PEOPLE GUIDELINES president for SmithGroup Inc., Detroit, from co- cus: HOPE, De- business leader of lighting design studio; also, troit, from senior Announcements are limited to development Michael Weingartz to director of me- manager of state management positions. Nonprofit and field chanical, electrical and plumbing en- Manning relations, and industry group board McGregor Lechner services Chrysler L.L.C., appointments can be found at gineering, from director of mechani- operations at Milpitas, Calif.-based cal engineering. Lindsey Auburn Hills. www.crainsdetroit.com. Send Richard McGregor to vice president Solectron Global Services, which submissions to Departments, was a post-manufacturing services SERVICES CONSULTING and partner, Guy Hurley Blaser & Crain’s Detroit Business, 1155 Heuer L.L.C., Troy, from branch vice division of Solectron Corp. prior to The following were re-elected to the Gratiot Ave., Detroit, MI 48207- Donald Kaylor to manager of environ- president, CNA Insurance Co. Farm- its 2007 acquisition by Singapore- board of directors, CMS Energy Corp., 2997, or send e-mail to mental assessment, Testing Engineers ington Hills; also, Mike Lechner to based Flextronics International. Jackson: Kenneth Whipple, chairman [email protected]. & Consultants Inc., Troy, from regional vice president and partner, from He has a bachelor’s degree in of CMS Energy Corp. and Consumers Releases must contain the person’s Energy Co.; David Joos, president and geologist, Professional Service Indus- bond manager. economics and finance from the name, new title, company, city in CEO of CMS Energy Corp. and CEO of tries Inc., Auburn Hills. University of Nebraska and is a CPA. which the person will work, former Consumers Energy Co.; Merribel HEALTH CARE title, former company (if not FINANCIAL Ayres, president of Lighthouse Con- Thomas Saeli, director for Advance LAW sulting Group L.L.C., Washington, promoted from within) and former Franklin Hobbs, adviser for One Equi- Capital Management Inc., Southfield, Richard Hurford to shareholder, Ogle- D.C.; Jon Barfield, chairman and presi- city in which the person worked. ty Partners L.L.C., New York, N.Y., appointed to board of directors, Oak- tree, Deakins, Nash, Smoak & Stewart dent of The Bartech Group Inc., De- Photos are welcome, but we cannot named nonexecutive chairman and wood Healthcare Inc., Dearborn. P.L.L.C., Bloomfield Hills, from direc- troit; Richard Gabrys, retired vice guarantee they will be used.

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Offer is accurate as of date of publication and subject to change without notice. You must open a new Huntington Merchant Services account and link it to a Huntington business checking account to be eligible. Offer is subject to approval of the merchant services account and cannot be combined with any other Huntington Merchant Services offers. $200 will be credited after the third month/statement cycle after Merchant Services is linked to a Huntington checking account to offset processing fees. Bank reserves the right to limit number of $200 Merchant Service promotional credits per business entity and/or by business tax identiﬁcation number. Member FDIC. ,® Huntington® and A bank invested in people® are federally registered service marks of Huntington Bancshares Incorporated. ©2009 Huntington Bancshares Incorporated. 20090608-NEWS--0016-NAT-CCI-CD_-- 6/4/2009 2:47 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS June 8, 2009

CALENDAR BUSINESS DIARY

ACQUISITIONS L.L.C. of Plymouth. P2R will provide TUESDAY THURSDAY Cerion with a range of integrated RAIN S OF THE EAR Atlas Oil Co., Taylor, will acquire 33 JUNE 9 JUNE 11 C ’ CFO Y communications, corporate position- retail gas stations/convenience ing and strategic public-relations ser- CEO Outlook. 8:30-10 a.m. Detroit Re- CFO Executive Summit 2009. 11:30 AWARDS THURSDAY IN DEARBORN stores in Chicago and the surround- vices in support of the company’s gional Chamber; Blue Cross Blue a.m.-5:30 p.m. Arzika L.L.C.; Join Crain’s Detroit Business as ing suburbs from BP Products North business development and marketing Shield of Michigan. With Tom Rehmann. An exploration of issues af- we honor the top CFOs in the America Inc., Houston, bringing At- initiatives. fecting the financial and economic las’ total BP station count to 113 in Lewand, president, Detroit Lions. De- region on Thursday at The Henry Win Schuler’s Foods, Marshall, has world, and networking with local and the Chicagoland/northwest Indiana troit Regional Chamber offices. Free Ford in Dearborn. named Berline, Bloomfield Hills, as its national CFOs and senior-level finan- for members. Contact (313) 596-0343. region. With this purchase, Atlas agency of record. Berline will be in- cial executives. Crain’s Detroit Busi- The winners will be selected from will now distribute more than 300 volved with the marketing of Win ness 2009 CFO of the Year awards will among 12 finalists, including million gallons of fuel annually for Schuler’s current product line as well Investepreneur Roundtable. 4-6 p.m. follow the summit. Ford Conference financial officers from public, BP, making it one of BP’s largest dis- as the launch of future products. Birmingham Bloomfield Chamber of and Event Center, Dearborn. Free to private and nonprofit companies. tributors. Commerce. Learn how to expand your delegates, includes admission to CFO Event sponsors include Arzika, EXPANSIONS business to support Michigan’s grow- of the Year ceremony. Contact: (248) Rehmann, Marsh and Clark Hill. CALL FOR NOMINATIONS ing film industry. With Rick Galdi, 910-4588. Registration and networking begin Top Driver, Lansing, a driving school, president, Great Lakes Angels, Bloom- Detroit Free Press and Metropolitan has opened a branch at 6765 Orchard field Hills; Alexander James, vice pres- at 5 p.m., with the program Affairs Coalition, Detroit, are seeking NAWBO Greater Detroit Annual Meet- starting at 5:30 p.m. and a Lake Road in West Bloomfield Town- ident, development and acquisitions, nominations for the “Shining Light ship. Telephone: (800) 374-8373. ing and Luncheon. 11 a.m.-1:30 p.m. strolling dinner in the Henry Ford Regional Cooperation Awards,” to Dean River Productions, Culver City, Celebrate the end of a great year and Calif.; and Jonathan Rayos, executive Museum at 6:30 p.m. Please recognize people who have made im- the winners of our chapter awards enter through the Imax Theater portant contributions to regional co- NEW PRODUCTS producer and CEO, Filmemerge, Lans- while welcoming the 2009-2010 board ing. Townsend Hotel, Birmingham. entrance. operation, progress and understand- Link Engineering Co., Plymouth, has of directors. Ramada Plaza Hotel, released a new portable data acquisi- $65 members, $85 nonmembers. Con- Admission is $60. Register at ing in metropolitan Detroit. Troy. $30 members, $40 guests. Con- Nominations are open to the public tion system, the Model 3802, which is tact: (248) 644-1700. tact: (313) 961-4748. www.regonline.com/cfoawards or call (313) 446-0300. and should be submitted by June 30. the next generation of the Link Com- Criteria and nomination forms can be pact Data Acquisition System. Tele- found at www.shininglightawards. phone: (734) 453-0800. Clay Ford Jr., executive chairman, com. Telephone: (248) 336-8623. WEDNESDAY Ford Motor Co.; Steven Ballmer, CEO, BrassCraft Manufacturing Co., Novi, COMING EVENTS Microsoft Corp.; others. Detroit Mar- has revised its decorative plumbing JUNE 10 The National Sum- riott Renaissance Center. $600 mem- CONTRACTS products and accessories, bringing mit. June 15-17. bers, $695 nonmembers, one-day tick- MedHub Inc., Ann Arbor, has signed wholesalers a variety of finish op- The New Face of Public Relations. Detroit Economic ets also available. Contact: (866) a contract with The University of tions for the company’s water stops, 11:45 a.m.-1 p.m. Ingenex Digital Mar- Club. A national 432-6625. Iowa Hospitals and Clinics to deploy connectors, faucet and toilet supply keting, Lunch Ann Arbor Marketing. conversation en- its enterprise residency management kits, escutcheons, cover tubes and A free weekly meeting where about 70 gaging prominent many other kitchen and bath compo- CEO Roundtable. 9 a.m.-noon. June system across all residency and fel- marketing and business professionals leaders and par- lowship programs, graduate medical nents. BrassCraft has extended the 16. Service Corps of Retired Execu- come together to network and learn ticipants on is- education and hospital finance. The availability of its polished nickel fin- tives. Seminar for the chief officers of about marketing. With Tonja Deegan, sues of vital im- MedHub system is an integrated ish to cover a broader range of plumb- existing companies to participate in Airfoil Public Relations. Conor portance to Web-based suite of modules devel- ing products. Web site: www.brass O’Neill’s, Ann Arbor. Free; lunch is America’s future networking with a panel of non-com- oped to improve communication, in- craft.com. discounted to $10 for Lunch Ann Ar- in a global econo- peting peers and SCORE counselors formation work flow and reporting Assay Designs Inc., Ann Arbor, a bor Marketing. Contact: (734) 272-4698. Ford my. With: William who face similar challenges in run- for physician training and residency provider of immunoassay kits, anti- ning their businesses. Bloomfield program accreditation. The system bodies, and reagents to the life-sci- Township Library. $150; registration also manages and documents daily ence and translational research mar- required. Contact: (313) 226-7947. resident and fellow activity required kets, has announced the release of the to drive Medicare reimbursement first commercially available multi- Tooling up for Wind Power and affiliated institutional billing. plex assay dedicated to the analysis of MARKET PLACE Generation. 8 a.m.-3 p.m. June 17. Au- Cornerstone Building Group, Troy, a heat shock proteins and molecular tomation Alley; Sterling Heights general contractor and construction chaperones, the MultiBead Chamber of Commerce. A conference management company, has been HSP/Chaperone 8-Plex Kit. Web site: www.assaydesigns.com. ANNOUNCEMENTS & EQUIPMENT & for metal-cutting companies that awarded a contract for a 4,300-square- SERVICES MERCHANDISE want to enter the growing wind ener- foot bank branch for J.P. Morgan gy sector. Presenters include NextEn- Chase at the corner of Southfield NEW SERVICES BUSINESS SERVICES OFFICE FURNITURE ergy, Great Lakes Wind Network, and Road and Webster, in Southfield. Weir Manuel Realtors, Birmingham, others. Registration is required. Con- Interior Partnership Group Inc., Claw- announced the new version of its Web RENT A CONTROLLER THE OFFICE FURNITURE WAREHOUSE tinental breakfast and lunch includ- son, a design-build construction man- site at www.weirmanuel.com. I can make your business financially IS NOW OPEN IN TROY! successful at minimum cost. Quality new and used furniture at warehouse ed. Seco Tools Inc., Troy. Free. Con- agement firm, has been selected for BorgWarner, Auburn Hills, has [email protected] prices. 1100 E. Maple Road, west of I-75. tact: (248) 528-5478. several area construction projects: launched a Web site at www.cool Monday - Friday, 9:30 - 5:00. 248-585-5400 Complete renovation of resident logic.borgwarner.com to educate MUST SELL, OFFICE CLOSED rooms at the Medilodge of Taylor and truck fleet owners about the Cool Log- WE SELL BUSINESSES Desks $99, Chairs $39, Files $49, Partitions $50, Third Thursday Networking Event. 4-6 p.m. June 18. City of Southfield, Engi- Sterling Heights skilled nursing facil- ic variable speed fan drives. Confidential & Professional Service. Lateral Files $99, Cubicles, Office Phone Systems Call (248) 548-6404 or (248) 474-3375. neering Society of Detroit, Southfield ities of the Medilodge Group; design The Michigan Association of Certified Specialize in Manufacturing, Distribution & Area Chamber of Commerce. Month- and renovation of the Southfield re- Public Accountants, Troy, has Business -To-Business Service Industries. gional office of Comcast; construction launched a Web page highlighting ad- Confidential Business Sale, Inc. ly networking event provides net- Call Us For Personalized working for area professionals. No of the Nancy A. Geschke Writing Cen- ditional resources that the organiza- www.ConfidentialBusinessSale.com ter and renovation of the lower level tion has made available to help its Detroit Metro Office 313-221-9378 RSVP, no membership. Fishbones Service: (313) 446-6068 Restaurant, Southfield. Free. Contact: of the liberal arts building at Mary- members get through current eco- (248) 796-4161. grove College in Detroit. nomic challenges. To access the Eco- FINANCIAL SERVICES CLOSING TIMES: Monday 3 p.m., Beal Inc., Ann Arbor, a demolition nomic Crisis Resource Center, go to www.michcpa.org and click on Pro- one week prior to publication date. contracting firm, has secured con- fessional Resources. Unsecured Bus. Line of Credit Please call us for holiday closing times. 2009 Engineering Society of Detroit tracts in 16 public school buildings Annual Awards Dinner. 6-9:30 p.m. Aesthetic Plastic Surgery and Laser $100,000 FAX: (313) 446-1757 throughout Southeast Michigan. The Up to Unsecured June 25. Awards ceremony for the projects are in Ypsilanti, Canton Center, Farmington Hills, is offering E-MAIL: [email protected] Low Interest Rate brightest and best in Michigan’s engi- Township, St. Clair Shores, Kalama- new treatments for sun-damaged skin INTERNET: neering community. Henry Ford Mu- zoo, Davison, Fenton, Flat Rock and with a combination of laser treat- Other Financing Available: www.crainsdetroit.com/section/classifieds seum, Dearborn. $125 ESD members, Marysville. ments and skin-care products. Tele- • $150 nonmembers, table for 10 $1,125. phone: (248) 855-6030. Asset Based Commercial Confidential Reply Boxes Available ZyGem Corp. Ltd., Solana Beach, • Accounts Receivable Contact: (248) 353-0735, ext. 152. DocVelocity, Troy, a paperless pro- PAYMENT: All classified ads must be Calif., has entered into an agreement • with Rubicon Genomics Inc., Ann Ar- cessing service for mortgage bankers

Hard Money Lending prepaid. Checks, money order or and brokers, recently announced the • SBA (Acquisition & Expansion ( Crain’s credit approval accepted. ALENDAR GUIDELINES bor, to incorporate ZyGem’s ad- C vanced enzymatic nucleic acid ex- release of DocVelocity 2.0, which in- • Credit cards accepted. cludes numerous enhancements to Note Purchase Financing If you want to ensure listing online traction technology into Rubicon’s make paperless processing easier and and be considered for print pre-analytical platform products de- Phone: (248) 687-1042 [email protected] See faster for users while providing tools publication in Crain’s Detroit signed to significantly improve the Crainsdetroit.com/Section/Classifieds for better compliance. Telephone: JNH INVESTMENTS LLC Business, please use the online performance of DNA and RNA ana- for more classified advertisements (877) 362-8356. Web site: www.doc calendar listings section of lytical instruments. The agreement, velocity.com. www.crainsdetroit.com. Here’s which will initially focus on diagnos- how to submit your events: tic single-cell whole genome amplifi- From the Crain’s home page, click cation kits, has the potential to be ex- DIARY GUIDELINES “Detroit Events” in the red bar panded to include products for near the top of the page. Then, broader research and diagnostic ap- Send news releases for Business click “Submit Your Entries” from plications. Diary to Departments, Crain’s the drop-down menu that will Amerigon Inc., Northville, a developer Detroit Business, 1155 Gratiot appear and you’ll be taken to our and marketer of products based on ad- Ave., Detroit, MI 48207-2997 or online submission form. Fill out vanced thermoelectric technologies, send e-mail to cdbdepartments@ the form as instructed, and then announced that its proprietary heat- crain.com. Use any Business Diary click the “Submit event” button at ed and ventilated seat system will be item as a model for your release, the bottom of the page. That’s all offered as an option for the front seats and look for the appropriate there is to it. of the 2010 Kia Mohave and 2010 Kia category. Without complete Borrego midsize sport-utility vehi- information, your item will not run. More Calendar items can be cles. found on the Web at Photos are welcome, but we cannot P2R Associates, Livonia, has been se- guarantee they will be used. www.crainsdetroit.com. lected as agency of record for Cerion 20090608-NEWS--0017-NAT-CCI-CD_-- 6/5/2009 6:25 PM Page 1

June 8, 2009 CRAIN’S DETROIT BUSINESS Page 17 DEQ gets good marks on permitting

LANSING — A new process. 77 percent of respondents said they Chester said that “if there’s one share survey data with them. survey gives the Michi- The compiled results were satisfied with their DEQ ex- area where we could across the Meanwhile in the state Senate gan Department of Environ- Capitol for all permits showed perience, 84 percent said staff board do a better job, it’s that out- last week, the Senate Economic mental Quality good Briefings about 74 percent of re- members were professional and reach and educating and inform- Development and Regulatory Re- marks for state permit- spondents were satisfied courteous, and just over 70 percent ing the public why we do things.” form Committee approved legisla- ting — an area often in with their permit experi- said DEQ staff had processed their Overall, he said the survey’s in- tion that would allow private engi- the sights of business. ence, 84 percent viewed application in a timely manner. formation is valuable and provides neers to review DEQ permits and The survey, conducted DEQ staff as professional “That suggests to me that that’s “real data, something that’s been require the DEQ to process those for the DEQ by Michigan and courteous and 71 very good, but there’s still oppor- lacking.” permits promptly. Supporters of State University’s state percent said their permit tunity for improvement,” said It also gives the DEQ grist to re- the measure include the Michigan and local government was processed in a time- DEQ Director Steven Chester. but criticisms and proposed leg- Chamber of Commerce. program, reports “a high ly manner. About 15 percent said they did islative changes to its programs. Chester said his view is that al- level of satisfaction” Some results for indi- not think the wetland permit ap- At a session at the recent Detroit lowing professional engineers who with the quality of the Amy Lane vidual permit areas plication processing was timely. Regional Chamber Mackinac Policy are being paid by the applicant to DEQ’s process for evalu- showed room for im- The survey also found “a fairly Conference, House Speaker Andy do a review “is a terrible idea. ating and issuing permits. The sur- provement, such as critical dunes strong correlation” between respon- Dillon, D-Redford Township, criti- They clearly are not a neutral, im- vey covered the DEQ’s 16 major and floodplains permits. dents’ evaluation of their interac- cized the DEQ for making business partial reviewer.” permitting areas and was sent to In wetlands permits — an area tion with DEQ staff and the permit- wait undue amounts of time for businesses, homeowners and oth- currently under discussion to turn ting process and the perceived permits and said “we cannot allow Short take ers who had gone through a permit over to the federal government — fairness of the regulation at hand. the bureaucracy to slow down progress in this state.” Sam Singh, former mayor of East Added Senate Minority Leader Lansing and former president and Mike Prusi, D-Ishpeming: “If the CEO of the Michigan Nonprofit Asso- DEQ can’t issue permits, get rid of ciation, is now senior policy con- them.” sultant with Lansing-based re- Lear Corp. races for a restructuring solution search firm Public Policy Associates. Chester said he’s asked to meet with Dillon and Prusi to discuss Amy Lane: (517) 371-5355, BY RYAN BEENE the hurdles may force us to do it in court,” he said. their concerns but also plans to [email protected] CRAIN’S DETROIT BUSINESS Lear faces a June 30 deadline to revamp its capital structure or it could be forced into Chapter 11 bank- A hedge fund, auto supplier or car company could ruptcy. The Southfield-based auto supplier skipped a play a big role in Lear Corp.’s future over the next $38 million bond interest payment due June 1. Doing so month as it races to revamp its capital structure or triggered a 30-day grace period, after which its bond- face a potential Chapter 11 bankruptcy. REAL ESTATE holders could force the company into bankruptcy. CFO Matt Simoncini said the world’s second- largest seat maker is talking with “strategic and fi- Under the terms of a credit default waiver, which AUCTIONS INDUSTRIAL PROPERTY nancial investors about trying to help us rework our also expires June 30, the company was not allowed to capital structure.” Such investors include other auto service the interest on its bonds. The company has been operating under a waiver after defaulting in March. (%,$/. 3)4% /0%.(/53%3 AVAILABLE NOW suppliers, automakers and hedge funds, he said. Lear also has begun dialogue with bondholders, dis- Lear has pursued “multiple paths” to rework its capi- 0- 4,000 to 100,000 sq. ft. cussing potential recoveries. tal structure with its lending group following the de- 0- Also 10,000 & 25,000 sq. ft. “We want to take advantage of the fact that the debt fault, but the company has yet to come to a solution. Free Standing Bldgs w/truckwells. Just like auto suppliers need to reduce their pro- !UCTIONSaturday, June 27 at 11am 1 Mile from Metro Airport is at a discount right now on the marketplace,” Si- moncini said. “We are trying to bring new money in duction capacity to match lower industry car and (Registration at 10am) REA CONSTRUCTION that would allow us to take some of the debt out, take truck production volumes, Lear needs to make its $ETROIT´S0REMIER!DDRESS (734) 946-8730 advantage of the discount, whether we make the in- capital structure match the drop in supplier revenues Also Heavy Industrial terest payment or not.” affecting every company, Simoncini says. Woodbridge Estates Land Available Reaching an out-of-court solution is Lear’s goal, but “You need to take debt capacity out because you Min. Bid From $60,000 Orig. List Price $285,000 www.reaconstruction.net whether the company will be able to do that has not can’t service your debt at revenue numbers that are Only 4 Units Left! been determined, Simoncini said. 40 percent lower.” “We’d prefer to do it out of court, but the reality is Ryan Beene: (313) 446-0315 or [email protected] -)2!#,%3 $%42/)4 -) South of Canfield 2 Blocks West of Lodge Fwy. The Most Significant New Community in Detroit. Pontiac, Michigan Located in Mid Town at Wayne State University and DMC. Warehouse Space for Lease Almost free! • Rates as low as 17¢ a month gross Google: Growth in Ann Arbor slides • Warehousing or Manufacturing • 5,000 to 200,000 sq.ft. for lease ■ From Page 3 • Interior Truck wells and grade level doors has fewer employees today than it which came from advertising. the Ann Arbor Area Chamber of Com- 2/:')%4:%..!4)/.!,#)49-/24'!'% • Sprinklered and heated building did at the start of the year. “Google is a money machine, merce. “The issue for this region is 4(%2%7),,"%!#,!33)#-/4/7.$%42/)4 • Short term leases for temporary storage The decline can be attributed to but there’s no way their previous not so much Google needing 1,000 !24)34/. 3)4%&/2!-%%4!.$'2%%4 313-835-2485 the general slowdown across most 2/3%!5#4)/.'2/50 ,,# growth rate could be sustained,” people, but is this a place Google- BETH ROSE, CAI AUCTIONEER Best deal in town! forms of advertising by companies said David Fry, CEO of Ann Arbor- like companies want to come and 2009 Michigan State Auctioneer's Champion of every size. based Fry Inc., an e-commerce ser- set up and develop company net- WWW2OSE!UCTION'ROUPCOM INVESTMENT PROPERTY Ann Arbor is one of a handful of vice provider. “It’s still the center works.” field offices that work in Google’s of the universe of (online search The politicians echoed similar AUCTIONS PRICE REDUCED AdWords division, the pay-per-click engines).” sentiments. LYON TOWNSHIP/BANK OWNED search term-based advertising 12-unit rental townhouse project available. He noted that Microsoft Corp.’s in- “I don’t think anyone can be too AUCTION Get a great deal on this investment opportunity. that’s the company’s primary troduction of a rival search en- disappointed at Google,” said Ann Contact Karen Shepherd at 248-290-5300 ext. 311 source of revenue. The unit, which gine, Bing.com, has received posi- Arbor Mayor John Hieftje. “I’d be 42 NEW CONDOS PROPERTY MANAGEMENT also does sales and support for tive press and reviews since its very surprised if there are many small to midsize business users of unveiling last week, but thinks companies growing right now.” Finished & Unﬁnished Downtown Romeo Property Tour Thursday June 11, 2009 1-7 pm AdWords, operates out of the Google will answer the challenge. The city’s lone incentive to lure McKinley Towne Centre on East Min Bids From $35K! Retail and Office space available “Google might have to respond Google was 400 free parking sponsored by the Romeo DDA, Romeo, Liberty Street at Division Street. Michigan www.romeodda.org to that and they will,” he said, spaces, Hieftje said, and a silver PLUS COMM. & RES. LOTS & LAND In January, Google trimmed its or call 586-752-1170 for more details adding that the company continu- lining to the slower growth is that Sunday, June 14 recruiting staff by 100 and closed ally releases new products and will the company hasn’t needed all RESIDENTIAL PROPERTY three engineering offices, but the release 18 new cell phones as part those spaces. Ann Arbor operations were unaf- NRC.com/902 Chateaufort Place, co-op townhouses, locat- of its new cell service this year. Google, which was co-founded in 800.747.3342, x902 ed in a park setting just blocks away from fected. Overall, Google has nearly downtown Detroit. Units include 3 bedrooms, 60 fewer employees, but still more The Ann Arbor business com- 1998 by University of Michigan gradu- Windham Realty Group, Inc. MI LIC BRK; LIC #6505248455 floor-to ceiling windows, a full basement, and munity is less concerned about ate Larry Page, still has a UM fla- a courtyard. Thriving and diverse, community. than 20,000 in total. Walk to the Eastern Market and Greektown. Net income the first three Google’s hiring than the attrac- vor atop the Ann Arbor office: The CRAIN’S MARKET PLACE Call 313-587-0373 months of this year was $1.42 bil- tiveness of the local environment recently departed Burnett is a WORK! lion on revenue of $5.51 billion, an for such companies. Michigan graduate, and his re- CRAIN’S CLASSIFIEDS increase of 8 percent profit and 6 “I’m not going to get concerned placement, Miller, is also a Maize To Place Your Ad Call WORK! percent revenue growth over the about the fact Google is getting a and Blue alum (and Grosse Pointe (313) 446-6068 To Place Your Ad Call same quarter of 2008. new leader or they have 250 em- native). or (313) 446-6068 or Google’s full-year 2008 revenue ployees and not 300,” said Jesse Bill Shea: (313) 446-1626, Fax (313) 446-1757 Fax (313) 446-1757 was $21.7 billion, almost all of Bernstein, president and CEO of [email protected] 20090608-NEWS--0018-NAT-CCI-CD_-- 6/5/2009 6:38 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS June 8, 2009 Wind: Firms say they have a key to state’s green-energy future ■ From Page 1 One is money earmarked for and grants, but declined to identi- nents. used by about 75 percent of that than an ideal greenfield plant, state energy programs under the fy specific programs and “We’re just going to take this market. would be capable of producing federal stimulus legislation, the amounts. technology and put it over into a “By stepping away from basical- 1,000 blades per year. American Recovery and Reinvest- One potential source could be a new field,” Metts said. ly 70-year-old technology … which The plant currently manufac- ment Act. The state proposes to pot of $93 million in federal stimu- For example, a turbine’s hub — is the way that they’re building tures MAG machine tools, but take $15 million of the $82 million lus money announced by the U.S. a 40,000-pound spherical compo- these blades now, we’re going to Cope said it could be reconfigured. it is receiving for energy programs Department of Energy for improve- nent more than 10 feet tall to take this technology to the ab- “It’s perfect for us because we through ARRA to seek funding ments in wind turbine reliability which turbine blades are attached solute leading edge of current air- own it, we could make it available, proposals from companies that and improvements in turbine ar- — currently takes about 24 hours foil technology,” Cope said. we’ve got skilled people there, and have the capacity to apply ad- chitecture. Solicitations for pro- to machine. A prototype machin- Transferring the technology to their capabilities are perfect,” he vanced manufacturing technolo- posals are expected to go out by ing system designed by MAG and manufacture turbine blades — sig- said. gies and techniques to wind tur- month’s end for the funding, Dowding could reduce the build nificantly larger in scale — would DLEG’s Pruss said the bine and solar panel which includes grants and loan time to less than four hours, Metts not be an impossible challenge, be- MAG/Dowding collaboration pre- manufacturing, said Stanley guarantees. says. cause the engineering and safety sents an opportunity for Michigan “Skip” Pruss, director of the Michi- “These guys at the MEDC are re- Advanced machine tools also requirements of aerospace manu- to prominently jump ahead in the gan Department of Energy, Labor and ally wonderful,” Cope said. “They are being developed by Dowding facturing are much more stringent development and production of Economic Growth. have bent over backwards to help and MAG to build blades using than what it would take to make wind energy products. He said the state hopes to issue us with this.” carbon fiber, a plastic composite turbine blades, “It’s the obvi- the request for proposals within 30 MAG is a global machine tool- that uses carbon filaments instead Cope and Metts ous next step to days, and he expects MAG and ing manufacturer serving the air- of glass and is lighter than alu- said. We’re going to apply advanced Dowding will respond. A bill au- craft, automotive and industrial minum and stronger than steel Such a machine “ manufacturing thorizing expenditure of the state products industries. Dowding Ma- pound-for-pound. would essentially take this ... to the technologies and energy program money passed the chining launched in 2007 as a Practically all turbine blades be a current ma- techniques to tur- Legislature last week. spin-off of Dowding Industries currently are built by hand using a chine tool on absolute leading bine component The state money would need to Inc. to machine wind turbine com- combination of fiberglass, light- steroids. A basic manufacturing,” be complemented “by a lot of feder- ponents. The company has since weight woods such as balsa, and machine tool used edge of current Pruss said. al dollars” that would enable partnered with MAG as its sole sometimes carbon fiber. to make dies has “We’re highly plants to be retooled and tooling tooling supplier, and now they’re MAG currently makes machines between three airfoil confident that if machinery to be fabricated, Pruss jointly developing specialized hy- to build aircraft fuselage compo- and five axes and we can only solve said. brid machine tooling that they nents and airfoils, such as wings can be roughly technology. some of the finan- He said potential federal say would cut the time required to and tail fins, using carbon fiber. the size of a small ” cial questions sources include loan guarantees manufacture wind turbine compo- Cope says the components are bedroom. Such a Roger Cope, MAG Industrial that this can hap- machine can cut Automation Systems L.L.C. pen, and that this metal to form dies can happen first in the world, in used to build vehicle components Michigan.” or curved body panels. Gov. Jennifer Granholm’s alter- Instead of cutting metal, the tur- native-energy strategy includes bine blade-making machine would targeting the large assembly be much longer than a football plants of wind industry original- field, including the end zones, and equipment manufacturers, and use 55 axes to lay carbon fiber fila- supply chain and component man- ments to create a mesh over a mold ufacturing is a major step toward of the blade with precision down to that, Pruss said. thousandths of an inch, apply “We critically need, and we des- resins and adhesives to make the perately want, an OEM … and this finished product using only au- is a huge play to make it happen,” Meetings. tomation. he said. Carbon fiber blades would be Dan Radomski, vice president of stronger, lighter and more durable industry services at Detroit’s Nex- than current turbine blades — but tEnergy, said the venture is “an ex- carbon fiber is expensive. ample of manufacturing intelli- Cope noted that the full life-cy- gence making major cle cost of the blades must be con- improvements in the infrastruc- sidered. “If our blades last 25 years and a ture for a growing market, like fiberglass blade lasts seven, can wind turbines.” you afford to pay three times as He said that “the custom equip- much?” he said. ment they’re building for both the Metts and Cope say they also hubs and the blades is unlike any- plan to reduce costs by integrating thing that’s out there right now.” Conventions. the entire supply chain within the DTE Energy Co., which is moving company. They’re talking to car- into major wind development, has bon fiber suppliers, resin suppli- talked with the companies. DTE’s ers, utilities and turbine manufac- Detroit Edison Co. has acquired turers such as General Electric. easements on more than 55,000 “The idea is to get everybody in- acres in the Thumb area, where it volved in this in the beginning so expects to start building wind tur- that everyone will be able to con- bines in 2011. tribute to a solution that satisfies The company expects to install the whole supply chain,” Cope as many as 125 turbines by 2015 said. “We think this is going to and could have as many as 280 tur- work.” bines in the Thumb by 2029. Metts and Cope were in South DTE officials involved with re- Carolina on Friday to meet with newable energy see the Unconventional meetings. General Electric to discuss their MAG/Dowding idea as having concept and potentially lend a ro- “real potential,” said Scott Si- mons, senior specialist, external From well-appointed boardrooms, to high-tech meeting facilities, to Sound Board, our 1,800-seat, tor blade design to advance the machine tool system design and communications at DTE. state-of-the-art theater, we make every presentation more memorable. engineering process. “What interests us is the fact “We’re going to do this with a that we’re always interested in bet- manufacturing partner so we can ter, stronger, lighter and cheaper,” basically be involved in the manu- in terms of wind turbine compo- facturing to see what fixes we need nents, Simons said. “But at the to put in, the changes and im- same time, one of the things we’re provements on the fly, rather than also looking at is proven reliabili- For more information call 866.STAY.MCC or visit MotorCityCasino.com getting it filtered through a cus- ty, so that’s what they’ll have to tomer,” Cope said. undertake.” MotorCity Casino Hotel and MotorCity Casino Hotel design A potential first location for the Ryan Beene: (313) 446-0315, are trademarks of Detroit Entertainment, L.L.C. ©2009 company would be at a current [email protected] Detroit Entertainment, L.L.C. All rights reserved. MAG plant in Port Huron. Scope Amy Lane: (517) 371-5355, says the plant, although smaller [email protected] 20090608-NEWS--0019-NAT-CCI-CD_-- 6/5/2009 6:37 PM Page 1

June 8, 2009 CRAIN’S DETROIT BUSINESS Page 19 Defense: Tied to autos ■ From Page 1 consolidating the Heavy Brigade In fact, BAE is a slightly larger Combat Team division of its U.S. consumer of its CVS products than Combat Systems in Sterling GM, according to an industry re- Heights, both said they expect support the company prepared last ply chain fallout to be minimal. year. ArvinMeritor contributes BAE media relations manager components to the Family of Medi- Steve Field said the company’s seum Tactical Vehicles fleet of mili- nior supply chain managers report tary trucks, a group of defense con- “things look good” in terms of few tracts awarded by Tacom. intersections with its own supply GM and Chrysler together ac- chain, but it will continue to moni- counted for about 15 percent of the o][`Yf_]\]n]jql`af_afgmjjgegmjj]\]ka_f]\dgmf_]lggmjj]fgnYl]\\afaf_jgge company can easily use other straddling the Yf\hjanYl]\afaf_khY[]$[ge]]ph]ja]f[]l`]YeZaYf[]g^gmjf]o\ [gjoal` sources. two industries, l`]kYe]_j]Ylkl]YcqgmÌn]YdoYqkdgn]\& GDLS was formerly Chrysler De- particularly if fense before Falls Church, Va.-based they did not Ljgqt*,0&*.1&0,*,t/--O&:a_:]Yn]jJ\& General Dynamics bought it in 1982. push aggressive- Virtually all steel used in the de- ly enough to ex- fense industry production of Mine pand their de- Dalto Resistant Ambush Protected vehi- fense cles came from the U.S. operations component in years past. of ArcelorMittal S.A., said Loren A “golden opportunity” existed Thompson, COO of Arlington, Va.- during the closing years of the based The Lexington Institute and a de- Bush administration that may fense industry analyst. have passed with the change of ad- Thompson expects to submit an ministrations and defense priori- industry article for publication ties, he said — those who started shortly on the importance of diversifying only recently may be strong domestic manufacturing to too late to survive the loss of auto- U.S. national security. He con- motive contracts. tends that allowing manufacturers But Curtis insists the opportuni- to implode could entangle the De- ties to diversity continue. partment of Defense with foreign “It’s going to be getting tougher, companies that acquire the compa- probably, but there are still plenty nies’ assets. of new opportunities there,” he “There’s a reason why the compa- said. “With the (Joint Light Tacti- ny that makes the Humvee is called cal Vehicle) coming, MRAP AM General,” he said, referring to (ATVs) and other opportunities, its previous ownership by the for- there will continue to be contracts mer American Motors Corp. “But awarded and plenty of supplier Washington hasn’t been managed need.” or represented well by people of in- But Ed Walker, president and dustry for decades. It’s run mainly CEO of W Industries in Detroit, said by lawyers and people who don’t re- his company is fortunate to have ally understand this point.” diversified into defense five years He adds, however, that he ex- ago. W Industries, with 400 em- pects defense contractors will see ployees and $82 million in revenue less impact on tanks or other last year, makes shipping contain- treaded vehicles than on military er systems to transport automo- trucks and wheeled vehicles, tive components between suppli- which use domestic automotive ers and OEMs, as well as components. Echoing that point structural components of MRAPs was Arthur Sirilla, associate direc- and other defense vehicles. tor of operations for the Tacom Today, he estimates the automo- Contracting Center at the U.S. Army tive sector comprises 15 percent of Tacom Life Cycle Management Com- all sales, compared with 35 percent mand in Warren. defense. Ford is his sole automo- “It’s kind of going to depend on tive customer today, so he faces no which products and commodities exposure from the bankruptcies. we buy,” he said. “For tanks and “I think we were very fortunate treaded combat vehicles, there’s to have moved over to defense probably not going to be as much when we did, because it’s a very overlap.” different climate now. A whole lot Troy-based automotive supplier of automotive suppliers knocking ArvinMeritor Inc. appeared to derive on a lot of prime contractors’ slightly more than 3 percent or doors, that means the prime (de- $150 million of its roughly $4.8 bil- fense contractors) have more con- lion annual sales in its Commer- trol over prices,” he said. “It’s still cial Vehicle Systems division. It a good market, but there’s a new employs 525 of its roughly 17,000 kind of pressure on it.” employees on military vehicle sys- Chad Halcom: (313) 446-6796, tems — just over 3 percent. [email protected] 20090608-NEWS--0020-NAT-CCI-CD_-- 6/5/2009 4:20 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 8, 2009 Land swap key to ending Cities work to attract small biz Royal Oak project impasse Officials review ‘hoops’ and master plans

A development saga that spans in 2008 completed a land parcel BY NANCY KAFFER tion for offices but a mixed-use at- times we have to retrain them.” nearly two decades in Royal Oak swap with Woodward Gateway CRAIN’S DETROIT BUSINESS mosphere so there’s more of a 24- And cultivating a small-busi- could conclude this month when L.L.C., the landowner that will hour life,” said Mark Miller, Troy ness community gives Troy a construction begins on a new L.A. lease the land to L.A. Fitness af- In Royal Oak, it can take nine city planner. “And also so we’re more diverse tax base, Miller said. Fitness health club planned near ter the club is complete and open months to pull a permit. But the not putting all our eggs in one bas- “Obviously our tax revenues the corner of Woodward and in December, said Duczynski and actual process takes about two ket.” have decreased dramatically,” he Washington avenues. DDA downtown manager weeks, said interim City Manager Troy is involved in a massive said. “A lot of the Big Beaver corri- Stephen Duczynski, vice presi- Stephanie McIntyre. Donald Johnson. overhaul of its master plan, de- dor was basically office … the dent and director of development The land between Main Street That’s dead time a task force signed at creating more mixed-use Kmart headquarters left, (General and construction for Livonia- and Washington Avenue, known aimed at business attraction is try- areas through zoning flexibility. Motors Corp.) used to have quite a based Schostak Bros. & Co., said as Gateway Plaza, was previous- ing to cut. The city hired a San Diego-based few office facilities in the city, like the developer broke ground on ly home to a car dealership and Composed of members of the lo- municipal consultancy to review the Saturn headquarters and On- the health club site Jan. 15 and is was later the site of several scut- cal business community and a its planning, building and engi- Star. If we create a mixed-use envi- nearly finished with the parking tled development plans going Royal Oak-dwelling process con- neering department processes. ronment, we’re less likely to lose lot and building pad for the struc- back at least to the early 1990s. It sultant, the task force has taken a “They provided us recommen- (occupants) and have so many va- ture, at a site adjacent to became controversial in 2007 deep dive into the intersection of dations and identified our good cancies like what happened.” Schostak’s original building loca- when Schostak scrapped its own business and bureaucracy. points, but also if we want to be Royal Oak plans to start meeting tion. mixed-use hotel and retail devel- “We have a mission statement to cutting edge, how to go,” Miller with business owners before the Construction could begin in opment plans at the site in favor review … what steps, hoops and said. “We took a close look at our- permitting and approval process early June on a two-story, 45,000- of a single-story L.A. Fitness cen- circles do business people have to selves and confirmed that we’re begins, Johnson said. A lot of the square-foot structure with the ter. jump through at City Hall to open pretty good, fast in our reviews, dead time in Royal Oak’s permit- gym above a ground-level cov- The swap stems that contro- a business,” said Andrey Tomkiw, but if we want to be great, where ting process comes from forms ered parking garage. versy by allowing the health club partner at Royal Oak-based law we need to improve.” that aren’t properly filled out. The California-based health to be built on former city proper- firm Tomkiw Dalton P.L.C., and a The city is focused on making “We send it back because it was- member of the task force. “Stream- club chain is taking bids for a ty across Washington. fast, fair, consistent decisions with n’t done right by the customer,” he line what’s there and see if some general contractor for that phase Woodward Gateway’s presi- regard to regulations and building said. “So we’re looking at what can processes are still required.” of development, Duczynski said dent is David Schostak, who is permits, he said, but it also asks we do to help them do it right the Royal Oak isn’t the only city late last month. also co-president of Schostak business owners to meet with city first time. If we can make those that wants to become more attrac- “They will start construction Bros. officials before starting the per- kinds of changes in the process — tive to small business. With the re- after we transfer the (construc- The DDA in return received a mitting process, a measure that’s communication, extra meetings cession in full swing and vacancy tion) site to them, with their own similar-sized parcel along the proven particularly helpful with up front — we help them under- rates rising across the region, the small-business owners. stand the process and what we’re contractor,” he said. “Ultimately north service drive of I-696 be- ability to attract small businesses they lease the site when it’s fin- tween Main Street and Wood- “One of the things that happens trying to do without short-circuit- has become a key ingredient in with small-business owners is ing the inspection process. ished, but L.A. Fitness just ward Avenue and will meet soon any city’s commercial mix. wants their building to be built to discuss possible uses for it, they’re not experts in redoing “We’re trying to make this so “We have the Somerset businesses and developments,” he people will see Royal Oak as a good according to their set specifica- McIntyre said. Collection, we have the Big Beaver tions.” A meeting date on that issue said. “So we need to spend time place to do business.” corridor. … Big Beaver needs to with small-business people to ex- Nancy Kaffer: (313) 446-0412, Royal Oak city officials and the has not been set. change from being not only a loca- plain what needs to be done. Some- [email protected]. Downtown Development Authority — Chad Halcom

Royal Oak: Vacancies rise, rents fall as city feels recession’s effect ■ From Page 3 “But I’m hopeful. There are still Two of his three properties hundreds of thousands of square ROYAL OAK TURNOVER house invitations maker Write Im- feet just sitting on the market in pressions and period clothiers Lost & Southfield or other parts of Oakland Moving in Moving out Found Vintage Inc. He is asking $15 County, and we’re not seeing that.” Opening or relocating since Jan. 1: Closing or leaving since Jan. 1: per square foot to lease the third, a Giving up hope after many years Howard & Howard Attorneys P.L.L.C. (from Bloomfield Hills), The Daily Tribune, 210 E. Third St. Moved. former UPS Store that consolidated downtown is Kathleen Klein, for- 450 Fourth St. The Lotus Import Co., 419 S. Washington Ave. with another location in 2007. mer owner and president of The Lo- La Feast, Middle Eastern cuisine, 315 S. Main St. Closed. “I’m more committed to getting tus Import Co. on South Washington What Crepe L.L.C., dessert bar/café, 317 S. Washington Ave. Albano’s Café, 315 S. Main St. Closed. strictly retail because I think it’s Avenue, which closed March 31. Wow Smile Express, teeth whitening service, 317 E. Fourth St. Sprout–A Neighborhood Kids’ Store, 619 S. the best fit in that area and it’s im- Klein, who bought the long-run- Vita Mend, holistic health/nutrition store, 419 S. Washington Washington Ave. Closed. portant to keep that component up ning business in 2000 and now Ave. (opening soon) Small Plates, 310 S. Main St. Closed. for the downtown to stay viable,” works as a community affairs offi- he said. “If I were to get interest cer in the environmental industry, vacant space along Third Street, end of Washington Street. Even retailers who haven’t actual- from a light restaurant, it would said plunging consumer confi- and has had at least two discus- Both also reported an uptick in ly seen a downturn yet are manag- have to be an in-and-out thing for dence mixed with a surge in com- sions with area law firms about tenant reductions or renegotia- ing to cut costs on (leases) anyway. the time being, from a company petitive products made in China moving into the former offices of tions on existing leases since the It’s that kind of (real estate) mar- that’s waiting on a permanent lo- slashed into her sales. The Daily Tribune, which have U.S. economy sank into a reces- ket,” Banks said. “The downtown cation later.” Lotus sold women’s clothing, ex- been vacant since January. sion in the second half of 2008. is still an active area in Southeast Nahat said tenant renegotiation otic jewelry and home furnishings The Tribune has been steadily Nahat said he has handled four Michigan, but it has changed.” and lease reduction rates are accel- based on folk art. consolidating employees from its such deals in the past year, com- Bill Harrison, a Royal Oak DDA erating mainly on the fringes of “We really looked at every op- Third Street offices into The Ma- pared with none in a seller’s mar- board member and owner of three downtown, while core occupancy tion. If we had possibly moved into comb Daily building in Mt. ket three or four years ago. Banks downtown buildings, said he feels and rental rates remain more sta- half the size or space, or a cheaper Clemens since 2006. Both daily said tenant lease renegotiations he can wait out the current eco- ble. location, could we have contin- newspapers are owned by bank- are up 75 percent in 2009 over 2008, nomic downturn in order to get a The latest retail casualty in Roy- ued?” she said. rupt Journal-Register Corp. Nahat is but he did not give specific figures. stable, long-term tenant in his va- al Oak is Sprout–A Neighborhood “But the equation of it just did- also a principal of Corp One, which According to Costar data, rental cant space. Kids Store, which opened in 2006 n’t work. If I went to smaller space, owns the Tribune Center building. rates on office space for the central “In this market you get calls and closed May 13. Co-owner Lau- I would have half the inventory to Nahat and Eric Banks, executive business district climbed from from fingernail places and sellers ren Slutsky said the decision was sell, and that would affect the cus- principal and partner of Royal Oak- about $21 per square foot in 2005 to a of very low-cost knickknack prod- not an economic one, and she be- tomer needs. And at the same based real estate consultants CORE peak of around $25 per square foot ucts or crafts,” he said. lieves the district is still viable for time, I couldn’t get the rent or the Partners L.L.C., said downtown lease in 2007. They were down again to “You also get startups who may the right kinds of businesses. costs to cut completely in half.” rates are more or less steady. $19.28 per square foot in early 2009. have a good business plan but “I know there are some retailers Royal Oak has always had retail They range from about $35 per Retail has followed a more want to commit maybe to just a really feeling the economy right and office turnover, and building square foot at the core of down- steady downward trend, from $25 year or two on the lease. I’m look- now,” she said. “But then Royal owners said tenant interest re- town near Main and Third streets, per square foot on average in early ing for someone not only with a Oak has always been a market mains high. to about $10-$11 per square foot at 2005 to $21.05 per square foot today. good business plan but well-capi- with some steady turnover.” Nahat said he courted a south- the fringes of the district along “Retailers who are looking at talized and stable enough for a Chad Halcom: (313) 446-6796, western barbecue grill to lease a Lincoln Avenue or the southern revenue declines are cutting costs. longer lease commitment.” [email protected] 20090608-NEWS--0021-NAT-CCI-CD_-- 6/5/2009 4:19 PM Page 1

June 8, 2009 CRAIN’S DETROIT BUSINESS Page 21

Dealers: Closure orders called ‘immoral,’ ‘slow death’ www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] promising not to buy any new in- “He’s saying, ‘How do I get rid of EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] ventory — is impossible. these dogs?’ ” he said. “It’s essen- MANAGING EDITOR Andy Chapelle, (313) 446- “If you go that route, you’re go- tially distressed merchandise now. 0402 or [email protected] ing to be hemorrhaging for that Many GM dealers want to And then, how does he keep his ASSISTANT MANAGING EDITOR/FOCUS Jennette Smith, (313) 446-1622 or [email protected] time,” she said. “You take that employees?” BUSINESS LIVES EDITOR Michelle Darwish, (313) lump sum, it might sound like a lot Weller also said GM seems to be 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 of money, but it’s going to be hard basing dealer payouts on the or [email protected] to make it last. Not to mention all keep closure list a secret amount of inventory dealers have ASSISTANT NEWS EDITOR Jeff Johnston, (313) your people are going to quit.” on hand. 446-1608 or [email protected] Many in the local car dealer eas. DATA EDITOR Anne Marks, (313) 446-0418 or McDonald is president of Farm- He said he knows of a dealer in [email protected] ington Hills-based Holiday Automo- community are hoping the list of After Rockefeller directly de- the Thumb area set to receive WEB GENERAL MANAGER Alan Baker, (313) 446- General Motors Corp. dealers that manded he hand over the list, 0416 or [email protected] tive Group, which ranked 19th in $35,000, a dealer in the Flint area to WEB EDITOR Christine Lasek, (313) 446-0473, the latest Crain’s list of largest are being shut down will remain Henderson said, “Yes, sir.” receive $65,000 and a dealer in the [email protected] auto dealers, with an estimated secret. Once the dealers are identi- Detroit area to receive $300,000. WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) That may not be an option, fied, it will be difficult to sell the 446-0403, [email protected] $138.2 million in 2008 revenue. Automotive News, sister publica- EDITORIAL SUPPORT Robertta Reiff (313) 446- With her two Chrysler dealer- however. remaining cars or keep employ- tion of Crain’s Detroit Business, re- 0419, YahNica Crawford, (313) 446-0329 During a U.S. Senate hearing ees, said Barron Meade, presi- NEWSROOM (313) 446-0329, FAX (313) 446- ships among the 14 locally that must ported that payouts can be as 1687 TIP LINE (313) 446-6766 Wednesday, Sen. Jay Rocke- dent of Detroit-based Meade Au- close by June 9, she filed an objec- much as $1 million. REPORTERS feller, D-W.Va., asked GM CEO tomotive Inc. and the Detroit tion in bankruptcy court, along with “So this is considered to be a Ryan Beene: Covers auto suppliers, steel, higher nine other local Chrysler dealers Fritz Henderson repeatedly Automobile Dealers Association. stipend to help the dealers wind education. (313) 446-0315 or [email protected] Daniel Duggan: Covers retail, real estate and slated for termination. whether he will release the list “Privacy is of the utmost im- down their operations and get rid of dealers. portance,” he said. “Once people hospitality. (313) 446-0414 or Arguments on the objection of some distressed merchandise,” [email protected] were heard Thursday and are set “We have not been public know a dealer got that letter, it’s Weller said. Jay Greene: Covers health care, insurance and the with the list because we want to going to be tough to get anything environment. (313) 446-0325 or to continue Tuesday, the Associat- Barron Meade, president of De- [email protected]. ed Press reported, indicating it is give them 12 to 15 months to fig- done.” troit-based Meade Automotive Inc. Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland unclear how the judge will rule ure out their business without Even if the list does not come and the Detroit Automobile Dealers As- all this hanging over them,” out now, Meade said it will soon and Macomb counties. (313) 446-6796 or and what impact the dealers’ ob- sociation, said the GM approach at [email protected]. jections will have on the Chrysler Henderson said. be apparent what dealerships the very least gives options. Tom Henderson: Covers banking, finance, Rockefeller and other sena- are winding down or closing. technology and biotechnology. (313) 446-0337 or bankruptcy case. “They do have some options to [email protected]. August Russo, owner of tors wanted the list so they “I think you’ll be able to see keep operating through the con- Nancy Kaffer: Covers small business, the city of Lochmoor Chrysler Jeep in Detroit, could determine whether some the terminations sooner rather tract period or close up shop as Detroit, Wayne County government. (313) 446- areas of the country will lose than later,” he said. 0412 or [email protected]. said the objection is a symbolic soon as possible.” Bill Shea: Covers media, advertising and move of which he chooses not to be more dealerships than other ar- — Daniel Duggan As the dust settles and dealer- marketing, entertainment, the business of sports, and transportation. (313) 446-1626 or part. ships are terminated, many long- [email protected]. “I thought about it,” he said. have to close our doors,’ ” Russo the company’s expectations. standing family-owned companies Nathan Skid: Multimedia reporter. Also covers the food industry. (313) 446-1654, [email protected]. “But it’s just pissing in the wind. said. “So we stepped up … bought Last week, roughly 250 more will come to an end. Sherri Begin Welch: Covers nonprofits and You’re taking on the ‘Old those cars. Now I’m stuck with 200 dealers were notified. McDonald, for example, worked services. (313) 446-1694 or [email protected] Chrysler.’ So what’s the judge go- cars and I’m losing $1,000, $1,500 per The deal isn’t so much a soft her way up through her father’s LANSING BUREAU ing to say to you? car. That’s the landing as it is a “slow death,” said Chevrolet dealership before be- Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- ‘Here’s a hundred worst taste in my Robert Weller, an attorney at the coming president in 1995. 5355, FAX (517) 371-2492, [email protected]. or bucks.’ That’s a Now I’m stuck mouth, and in Detroit office of Abbott Nicholson She went on to be the first fe- 115 W. Allegan, Suite 220, Lansing 48933. moral victory “ every dealer’s P.C. who specializes in represent- male president of the Metro Detroit ADVERTISING mouth, right now.” ing dealerships. and nothing with 200 cars and Chevrolet Dealers Association in 2001 ADVERTISING DIRECTOR Marla Downs, (313) more. I decided to GM executives Weller has been privy to the con- and was named to Crain’s list of 446-6032 or [email protected] have compared tracts GM has sent dealers and SALES INQUIRIES: (313) 446-6052; FAX (313) stay out of it.” I’m losing $1,000, Most Influential Women in 2007. 393-0997 Most galling to their approach to said that while the dealers will re- It has taken a few weeks for the ADVERTISING SALES Jeff Anderson, Matthew J. Chrysler’s as be- ceive some money, they only get 25 Langan, Lori Tournay Liggett, Tamara Rokowski, Russo is that $1,500 per car. news to sink in, she said. Kimberly Ronan, Dale Smolinski Chrysler has ” ing a “more order- percent, with the rest coming She hopes to operate a used car WESTERN ACCOUNTS Ellen Mazen (Los Angeles) spent the past August Russo, ly process.” when they sell all their inventory company, but said the person in (323) 370-2477 CLASSIFIED SALES SUPERVISOR Terri Engstrom, three months Lochmoor Chrysler Jeep The local deal- and get their tax clearances. charge of used car sales for her has (313)-446-0351 asking dealers to ers who have been “It’s pretty draconian,” he said resigned to find more stable work. MARKETING MANAGER Irma Clark notified are unknown at this point, of the offer. “They have to give up EVENTS MANAGER Nicole LaPointe purchase additional inventory. Asked if she thinks her sacri- MARKETING ARTIST Sylvia Kolaski Russo said he never would have though GM CEO Fritz Henderson everything and then agree not to fices will help the companies, she SALES SUPPORT Suzanne Janik, YahNica purchased as many cars as he had indicated during a U.S. Senate sue them.” wasn’t sure. Crawford Weller said he knows a dealer CIRCULATION Candice Yopp, Manager. if they would have told him that hearing Wednesday that he might “Time will tell if this all works,” SALES, MARKETING INTERN Kim Winkler he’d be closed down. make it public. (See related story.) who was given the wind-down she said. For everyone’s sake, I PRODUCTION MANAGER Wendy Kobylarz “I will always remember — al- On May 14 and 15, 1,124 GM deal- agreement and has 100 cars left, 30 hope it all works.” PRODUCTION SUPERVISOR Larry Williams, (313) 446-0301 ways remember — Jim Press saying ers were notified that their opera- of which are models that will be Daniel Duggan: (313) 446-0414, CUSTOMER SERVICE ‘buy these cars, if you don’t, we’ll tions were not performing up to difficult to sell. [email protected] MAIN NUMBER: Call (888) 909-9111 or write [email protected] SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or (888) 909-9111. SINGLE COPIES: (888) 909-9111. REPRINTS: (800) 290-5460, ext. 125; (717) 399- SBA: Guarantee, elimination of fee push up loans 1900, ext. 125; or ashley.zander@theygsgroup .com. ■ From Page 1 TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected]. difference in our lending activity,” cent of a 7(a) businesses … we “The 90 percent guarantee was CRAIN’S DETROIT BUSINESS IS PUBLISHED BY he said. “If you compare the activi- loan. know that has some very significant,” Campbell said. CRAIN COMMUNICATIONS INC. ty before mid-March, we averaged A larger (The 90 percent substance to it,” he “And the interest rates are ex- CHAIRMAN Keith E. Crain 15 loans a week. Since that time, SBA guaran- “ said. tremely competitive.” PRESIDENT Rance Crain SECRETARY Merrilee Crain the average has been 24 loans a tee — and the guarantee) will “When a Low interest rates, coupled with TREASURER Mary Kay Crain week, up 60 percent.” elimination of bank the elimination of borrowers’ fees, Executive Vice President/Operations William A. Morrow Key SBA-related provisions of borrower fees go a long way in makes a increase cash flow, he said. Group Vice President/Technology, the ARRA, commonly called the — creates a loan, it Temkin said the ARRA also al- Manufacturing, Circulation making an Robert C. Adams stimulus package, allowed the greater sense tradition- lows the SBA to develop a loan pro- Vice President/Production & Manufacturing SBA to raise the percentage of of confidence ally gram to help broker dealers who Dave Kamis impact in Corporate Director/Circulation loans it guarantees to 90 percent when making wants to buy loans on the secondary market. Patrick Sheposh and eliminate borrower fees. the loan, be able to “The U.S. Department of Treasury G.D. Crain Jr. Founder (1885-1973) “That’s significant, it’s huge,” Campbell Southeast sell that will commit up to $15 billion in Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: said Marshall Campbell, president said, but also Michigan. loan. Troubled Asset Relief Program 1155 Gratiot Ave., Detroit MI 48207-2732; (313) and CEO of Port Huron-based Citi- gives a bank Michigan loans funds to further unfreeze the 446-6000 ” Cable address: TWX 248-221-5122 AUTNEW DET zens First Bancorp, the first bank in more options. weren’t looked at in small-business lending market by Marshall Campbell, CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Southeast Michigan to make a loan As the sec- favor by investors. purchasing (loans on the sec- is published weekly except for a double issue the Citizens First Bancorp third week of January, and a double issue the under the new provisions. “It will ondary credit But with the SBA 90 ondary market),” he said. fourth week of August by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. go a long way, I think, in making an market froze, it became impossible percent guarantee, the bank has to “That’s still under development. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address impact in Southeast Michigan, for banks to sell the non-SBA- only take a 10 percent risk.” … The economy seems to be im- changes to CRAIN’S DETROIT BUSINESS, Circulation Michigan in general, and overall, backed parts of loans, Campbell The 90 percent guarantee makes proving a little bit. ... So we’re a lit- Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. the economy in the country.” said. the loan easier to sell, but also tle bit optimistic.” Entire contents copyright 2008 by Crain Before the change, the SBA “The rest of the country has more attractive for banks to keep, Nancy Kaffer: (313) 446-0412, nkaf- Communications Inc. All rights reserved. Reproduction or use of editorial content in any guaranteed 75 percent to 85 per- blackballed or redlined Michigan Campbell said. [email protected] manner without permission is strictly prohibited. 20090608-NEWS--0022-NAT-CCI-CD_-- 6/5/2009 6:01 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS June 8, 2009 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 30-JUNE 5

DSO offers free tickets Blue Shield of Michigan’s in- ment of Corrections says Penske inks dividual health insurance Kwame Kilpatrick was three Jackson rated to workers in auto industry rate hike proposals and days late and $3,500 short in The Detroit Symphony Or- make recommendations on May on his $6,000 restitu- chestra is offering up to tentative deal Oct. 1. Insurance Commis- tion payment ordered as 1,200 free seats for its June sioner Ken Ross will make part of the criminal case 13 annual fundraising con- the final decision on the fil- that drove the former De- world’s worst cert to current or former to buy Saturn ing on Nov. 6. troit mayor from office, the automotive industry work- The insurer, which plans AP reported. Failing to oger Penske has ers — from car makers to to cut 1,000 jobs this year, make full payments could signed a memoran- suppliers and dealerships. awarded bonuses to about lead to Kilpatrick, who now R dum of understand- 4,000 employees for reach- lives in the Dallas area, be- The concert is part of the – and best ing with General Motors ing performance goals last ing found in violation of his DSO’s largest annual Corp. that would give his year, the AP reported. probation. etroit got its fair show, saying it wasn’t the fundraiser, “A Midsummer dealership chain, Penske Ⅲ The Ford Foundation has Ⅲ Former Kmart Corp. share of national appropriate venue for a con- Night’s Dream,” which in- Automotive given a three-year, $1 mil- Chairman and CEO Joseph D press last week, some versation about economic cludes a pre-concert recep- Group, Sat- lion grant to the Detroit Sym- Antonini is being sued by from an unexpected place. development. tion, dinner and dancing af- urn’s 350 phony Orchestra to help it ex- five banks accusing him of MSNBC personality Keith At Crain’s Friday press ter the concert, for ticket dealer- pand its donor base. defaulting on more than Olbermann featured Detroit time, the Conservancy had prices ranging from $250 to ships, the Ⅲ The Community Founda- $2.3 million in loans and Economic Growth Corp. Presi- obtained a restraining or- $5,000. compa- tion for Southeast Michigan promissory notes. Antoni- dent and CEO George Jack- der to halt demolition of Led by DSO music direc- nies said made surprise grants total- ni’s wife, Kathleen, and two son not Tiger Stadium, which had tor Leonard Slatkin, the Friday. ing $625,000 to 25 local non- of his businesses, JEA Auto- once but started Friday afternoon. concert will feature an ar- Penske, profits in recognition of its motive Group and JEA Enter- twice on ray of works with Shake- who 25th anniversary. prises, are co-defendants in his show spearean connections and wants to Ⅲ The Detroit Economic the lawsuits filed in Oakland — first on Comerica makes list of superstar mezzo-soprano Penske close the Club’s National Summit County Circuit Court. June 2 as Frederica von Stade. veggie-friendly ballparks deal in the third quarter, June 15-17 has added Fritz Also, Charles Conaway, one of the As of Friday, about 700 of said he expects to offer all Henderson, president and former head of Kmart world’s Nothing says “baseball” the free tickets had been the dealers new franchise CEO of General Motors Corp., Corp., was found liable in a worst quite like vegetarian sushi, claimed, said Elizabeth agreements and will retain to its list of speakers, which civil fraud trial in a case people, a meatless hotdogs and veg- Twork, director of public all 13,000 Saturn employees includes Aneesh Chopra, filed by the U.S. Securities regular etable stir-fry. relations for the DSO. for the immediate term. chief technology officer of and Exchange Commission Jackson segment Those culinary offerings To reserve free, automo- Neither Penske nor GM the United States; Gary for misleading investors on Olbermann’s show. have earned Comerica Park tive industry tickets for the would say how much Locke, secretary of the U.S. about company finances be- The reason? Tiger Stadium. the No. 7 spot in the annual 7 p.m. concert, call the DSO Penske is paying. Department of Commerce; fore its bankruptcy filing in As head of the DEGC, Jack- rankings of the nation’s top box office at (313) 576-5111. and CEOs of Chrysler L.L.C., 2002. The penalty phase has son has drawn fire for a De- 10 vegetarian-friendly ball- Ford Motor Co. and Citigroup. yet to begin. troit Economic Development parks by the People for the Tweaked Cobo bill could Ⅲ The $35 million Richard Ⅲ Bingham Farms-based Corp. board decision to fin- Ethical Treatment of Animals. BITS AND PIECES give Bing veto power J. Mazurek Medical Education Burton-Katzman Development ish the razing of the 97-year- “While the great city of Ⅲ Arvin Meritor Inc. on May Commons at Wayne State Uni- Co. has been named devel- old stadium, begun last year. Detroit is struggling through Legislation that would 30 was honored by the Michi- versity opened Friday. oper of the $146 million Uni- By Thursday, Jackson’s some tough times right now, enable the Detroit City Coun- gan Committee for Employer Ⅲ David Sowerby, chief ty Studios project on 104 reputation with Olbermann things are looking up for cil to revisit a plan to ex- Support of the Guard and Re- portfolio manager in the acres in Allen Park, which had risen. On that night’s vegetarian and health-con- pand Detroit’s Cobo Center serve with the Pro Patria Bloomfield Hills office of will include a media studio broadcast, Olbermann scious Tigers fans,” PETA As- has cleared the state Senate award for its backing of em- Loomis Sayles L.L.C., said and retail and residential named Jackson one of the sistant Director Dan Shan- and is en route to the ployees serving in the there is potential that development, and is expect- world’s best people — if non said in a statement. House, where Rep. Bert Guard and Reserve. Michigan companies could ed to employ 3,000 skilled Jackson would halt the de- (Which doesn’t explain why Johnson, D-Detroit, said he The Troy-based company see between 20 percent and workers and 83 managers. molition of the structure the carnivorous Boston Red plans to tweak the bill to paid the difference between 30 percent growth in earn- Ⅲ Jerry Campbell, owner and allow the Old Tiger Stadi- Sox, whose Fenway Park did- give Detroit Mayor Dave military pay and the em- ings in the first quarter of of Pinnacle Race Course in um Conservancy additional n’t make the list, swept the Bing the right to veto the ployees’ base salaries and 2010. Wayne County’s Huron time to develop the site. first-place Tigers last week) council’s vote, should it re- allowed benefits to continue Ⅲ Robert Bobb, emer- Township, said there’s no Olbermann also said he’d First on the list was Citi- ject the transfer of Cobo to during deployment. During chance he’ll finish the $142 have Jackson on his show to zens Bank Park in Philadel- a regional authority. gency financial manager the last five years, 74 em- million track if the state discuss economic develop- phia. The only other Ameri- for Detroit Public Schools, ployees have taken military goes through with its plan ment in Detroit, contingent can League stadiums listed cut 181 curriculum and in- to eliminate 101 days of live on the continued existence were Chicago’s U.S. Cellular leave and 41 received pay ON THE MOVE struction department staff racing at the state’s five of Tiger Stadium — or Field (No. 8) and Baltimore’s differentials. Ⅲ Gail Torreano is step- and four assistant superin- tracks for the rest of fiscal what’s left of it, at any rate. Camden Yards (No. 9). The company also will ping down as AT&T’s Michi- tendents. The Detroit News 2009 in an effort to cut state Robert Rossbach of Mort The full list is at represent Michigan in the gan presi- and the Detroit Free Press expenses. Crim Communications Inc., PETA.org. national competition for the dent to reported Thursday the con- Ⅲ Virchow Krause & Co. who handles some media re- The organization said Secretary of Defense Em- become tracts of seven district ex- L.L.P., which has a business lations for the DEGC, said nothing about the use of ployer Support Freedom senior ecutives will not be re- Friday that it was unlikely cow-hide baseballs and Award, announced in late vice presi- newed, and the schools’ unit in Southfield, has en- Jackson would appear on the gloves. June or early July. dent with police chief has been fired. tered an agreement to be- the com- Bobb also said a lack of come the exclusive U.S. pany in checks and balances and branded firm in the Baker Dallas. Jim accountability in spending Tilly International network. Murray, led to $1.7 million paid un- It will operate as Baker Tilly vice presi- necessarily in sales tax by Virchow Krause L.L.P. Torreano dent of the tax-exempt district. Ⅲ Valassis Communica- BEST FROM THE BLOGS government affairs, will be Ⅲ Yardley, Pa.-based tions Inc. (NYSE: VCI) has interim president. Journal-Register Co., bank- been told by the New York READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ Daniel Cherrin, who had rupt owner of The Oakland Stock Exchange that it meets been communications di- Press and The Macomb Dai- listing eligibility require- Google’s overdue ‘correction’ Renaissance zone a real deal? rector and press secretary ly, has signed an agreement ments. The company was for the city of Detroit, has to sell the Lapeer County warned Feb. 20 it was near- Now that Facebook It’s news that returned to North Coast Press and several smaller ing the delisting threshold. has“ poached Grady should“ surprise no one: Strategies and the Cherrin Michigan newspapers to Burnett from Google’s A deal to offer GM a tax- Law Group, both in Detroit, Lapeer-based Jams Media AdWords operation in free renaissance zone as president. OBITUARIES Ann Arbor, what feels to keep its Inc. for an undisclosed sum like revisionist spin is headquarters in the before July 31. Ⅲ Robert Alkema, former under way from the Renaissance Center THER NEWS Ⅲ Atlas Oil Co. could add president and CEO of AAA search engine may not be the sure O up to 40 new jobs, including Michigan in Dearborn, died giant. thing for all players that Ⅲ Musette Michael, a for- up to 10 at its Taylor head- of lung cancer May 27. He it first appeared. mer assistant attorney gen- quarters, after it acquires was 82. ” eral who lives in Lansing, 33 gas stations in the Chica- Ⅲ Clyde Cleveland, a long- Reporter Bill Shea’s blog on sports, the media, Reporter Amy Lane’s blog on utilities and state” has been appointed Michi- time Detroit City Council government issues affecting business can be found go area from BP North Ameri- transportation and marketing can be found gan’s independent hearing at www.crainsdetroit.com/shea at www.crainsdetroit.com/lane ca Inc. later this month. member, died of heart fail- officer to review Blue Cross Ⅲ The Michigan Depart- ure June 3. He was 75. DBpageAD.qxd 6/1/2009 3:48 PM Page 1

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