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www.crainsdetroit.com Vol. 24, No. 44 NOVEMBER 3 – 9, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Focus: HOPE names CEO Rest of state after two-year search Focus: HOPE has named Chairman William Jones Jr. as CEO, effective Jan. 1, 2009. Jones, retired COO of Chrysler Financial, had served on the nonprofit’s board for several years and became a starting to feel candidate for the position af- ter his retirement during the search process. His appointment ends a nearly two-year-long na- tional search that began af- ter former CEO Keith Cooley left the nonprofit in Febru- Detroit’s pain ary 2007 to become director of the Michigan Department of Labor and Economic Growth. Timothy Duperron, former Jobless rates jump in other areas COO, had served as interim CEO and chose not to be a BY AMY LANE But just as the rest of the nation has candidate for the position. CAPITOL CORRESPONDENT moved toward economic downturn and In a statement, Focus: jobless-rate increases as previously HOPE said Duperron will LANSING – The state appears to be seen in Michigan, the rest of Michigan stay on to assist with the catching up to the Detroit area … in is sharing unemployment increases leadership transition. economic weakness. that previously hit hard in Detroit. — Sherri Begin Welch Over the year and over the third “One thing that we saw over the quarter, the state’s jobless rate took NATHAN SKID/CRAIN’S DETROIT BUSINESS quarter … and really building some- Sam Saleh said it cost him nearly $700,000 to distance himself markedly bigger hikes upward than did what throughout ’08, is the state minus Silverdome sale postponed and his restaurant from the troubles of La Shish founder Talal the rate in the Detroit area. the Detroit area somewhat catching up A closing scheduled for Chahine. And even areas of the state that histor- to the Detroit area,” said Jim Rhein, la- last week on the $20 million ically have been generally stable, like the bor market analyst with the Michigan sale of the Pontiac Silver- Ann Arbor area and parts of west Michi- Department of Labor and Economic Growth. gan, saw significant increases. “A lot of the weakness in the Detroit See This Just In, Page 2 To be sure, the potential of a consoli- area had been going on earlier.” Hard work dation or merger involving Chrysler The Detroit area’s third-quarter job- L.L.C. and General Motors Corp. casts un- less rate was 8.8 percent, up somewhat certainty over future job losses in the erases stigma Detroit area. See Economy, Page 33 Ex-La Shish owner hits streets to Mexicantown welcome center, clear association to tainted founder BY NATHAN SKID market struggling to survive ELECTION NEWS ONLINE CRAIN’S DETROIT BUSINESS BY BILL SHEA Visit www.crainsdetroit.com Nothing could have prepared Sam Saleh, COO of Water- CRAIN’S DETROIT BUSINESS on election night and ford Township-based Mezzattar L.L.C., for the challenges he throughout the week for our would face after buying into the popular Middle Eastern Jordi Carbonell doesn’t have much compa- Web election report. We’ll restaurant franchise La Shish. ny these days. provide results and Saleh spent nearly $340,000 in 2004 to convert his Sheik business reaction on local He’s co-owner of Café con Leche, a culturally races of interest, the two restaurant, at 4189 Orchard Lake Road in West Bloomfield vibrant coffee and pastry shop inside the Mer- state ballot proposals, Township, into a La Shish franchise. cado, or market, that’s part of the troubled $17 university board changes Then he was forced to spend another $350,000 in an effort million Mexicantown International Welcome Cen- and more. to transform the restaurant and distance his business from ter project next to the Ambassador Bridge in- Crain’s reporter Bill Shea La Shish after its founder, Talal Chahine, was indicted for terchange construction site in southwest De- also will write a political tax evasion in May 2006. troit. blog starting Monday. If you Saleh said La Shish’s woes cost him nearly $700,000 in lost Carbonell’s café is the lone occupied space have suggestions for our sales due to his apparent affiliation with Chahine and the inside the 13,000-square-foot Mercado. There coverage or would like to cost of disassociating himself and his business from La are stalls or space for at least a dozen other sound off on your election Shish. BILL SHEA/CRAIN’S DETROIT BUSINESS businesses, but all are empty or are in the fi- opinions, write to “We lost 70 percent in sales during a one-month period, Jordi Carbonell at Café con Leche, nal stages of being emptied. [email protected] the lone occupied space in the See La Shish, Page 30 market. See Mexicantown, Page 32

Renovated Fort Shelby is CRAIN’S LISTS big on small meetings, Meeting facilities, Page 15

NEWSPAPER Page 11 Metro employers, Page 24 20081103-NEWS--0002-NAT-CCI-CD_--.qxp 10/31/2008 6:57 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS November 3, 2008

All of the project managers dend of $17 million to the ac- ing from his fourth trade mission Review team to examine DPS will be accredited by the U.S. counts of about 133,000 members to China. THIS JUST IN A review team appointed to ex- Green Building Council’s Leader- the week of Jan. 5, bringing the Local companies will have an amine the financial condition of ■ From Page 1 ship in Energy and Environmen- total of dividend disbursements opportunity to interact and forge Detroit Public Schools is asking the tal Design (LEED) program, join- to more than $50 million during relationships with the China- district to adopt a consent agree- dome was postponed and will not ing President Joe Vig, who was the last three years. based companies, Ficano said. ment requiring the district to be rescheduled until the buyer recently accredited. The minimum will be $50, with The China-based companies take urgent action to resolve its can prove financing is in place While the group will be a re- the amount growing based on a are in Wuxi, a city of 4.5 million budget deficit. for the purchase and develop- source for clients, Vig hopes to member’s loan totals and deposit people, which Ficano is visiting A news release issued Friday ment, said David Domzal, special push a green agenda, offering al- amounts. According to DFCU, for the second time during the by the Michigan Department of counsel for the city of Pontiac. ternatives to conventional build- this will be the largest dividend China trade delegation trip to Treasury said that if DPS officials Under a City Council resolu- ing materials and processes. distribution ever by a U.S. credit four cities Nov. 7-16. His group accept the consent agreement by tion, the closing was required to The 1,800-square-foot space is union. DFCU is the state’s also is touring Chongqing, Wednesday, they will have four take place by Nov. 1. Domzal said a temporary precursor to a largest credit union. Changchun and Beijing, with an weeks to adopt and begin to en- the closing was postponed so that standalone facility, he said, — Tom Henderson option to visit Chengdu. act a comprehensive deficit elim- more environmental testing can which would be LEED-certified. The Nov. 18 event at the Auto ination plan under terms set be done by the buyer, Silver Stallion — Daniel Duggan Salon, 16630 Southfield Road in Quicken works with Fortress forth by the review team. Development Corp., run by civil Allen Park, is scheduled to begin Livonia-based Quicken Loans If the district rejects the con- rights attorney H. Wallace Parker. at 9 a.m. Local companies inter- Inc. and New York-based Fortress sent agreement, challenges its va- Before another closing can be Law firm branches into China ested in participating may call Investment Group L.L.C. have lidity in court or fails to comply set, the council must approve the Miller, Canfield, Paddock and Laura Drain, (313) 224-5797, or formed a joint venture to help with its terms, a financial manag- Stone P.L.C. was scheduled to email [email protected]. date. But first, Parker must veri- Fortress implement a refinanc- er will be appointed to take open an office in Shanghai, Chi- Preregistration is required. fy that financing is in place. ing and loan modification pro- charge of the district’s finances. na, Nov. 1, after winning ap- — Robert Ankeny During several interviews with gram for residential mortgage — Amy Lane Crain’s, Parker has declined to proval and licensing from the holders, said Fortress President disclose how the project will be fi- Ministry of Justice of the People’s Pete Briger in a press release. nanced. He plans to use the struc- Republic of China. Fortress raises and invests in CORRECTION Miller Canfield principal ture as an entertainment venue private equity funds, hedge Thomas Appleman, a corporate Leo Burnett Detroit Inc. is no longer represented by the Detroit law and build an adjacent horse-rac- funds and publicly traded alter- and securities law attorney, will firm Nemeth Burwell P.C. in an ongoing federal age discrimination ing track. Parker did not return a native investment vehicles. lawsuit. A story on Page 45 in the Oct. 27 issue erroneously included lead the Shanghai office while — Tom Henderson phone message Friday request- continuing his U.S. practice. At- the firm as one of two defending the advertising agency. ing a comment. torney Weisun Rao is also in the A story on Page 11 of the Oct. 20 issue had an incorrect figure for an — Daniel Duggan office. Chinese firms seek local award to CieloMedSolutions L.L.C. from the state’s 21st Century Jobs — Robert Ankeny partners for networking Fund. The correct amount was $2 million. In addition, the story re- Vig plans LEED consulting office ferred to matching funds from Ann Arbor-based North Coast Technology Wayne County Executive Investors L.P. and Birmingham-based Seneca Partners Inc. While those Taylor-based J.S. Vig Construc- DFCU says dividend is a record Robert Ficano will host 12 China- companies say they are considering investments in Cielo, no commit- tion Co. is expanding with an Ann based companies seeking invest- ments have yet been made. The Michigan Economic Development Corp. Arbor office — to be home for a Dearborn-based DFCU Financial ment opportunities and business said the information about matching funds that it distributed to the new practice focused on green Federal Credit Union has an- partnerships in Wayne County press and posted on its Web site came from Cielo’s application. construction consulting. nounced it will distribute a divi- on Nov. 18, two days after return- 20081103-NEWS--0003-NAT-CCI-CD_-- 10/31/2008 6:39 PM Page 1

November 3, 2008 CRAIN’S DETROIT BUSINESS Page 3 Blues lean CRAIN’S INDEX Overseas slide: Falling international sales hurt manufacturers Masco, on Lansing Kaydon. Page 4. Jobs on the line: DTE, union help fund training center for much-needed Insurer: Pass bills, line workers. Page 16. PHOTOS BY NATHAN SKID/CRAIN’S DETROIT BUSINESS K-Dow coming: New Some of the new vehicle inventory awaiting buyers at Northland Chrysler. plastics, chemical losses mounting company weighing two sites in Southeast Michigan. Page 26. BY JAY GREENE CRAIN’S DETROIT BUSINESS Risky bet: Lions games have ad Blue Cross Blue Shield of Michigan is buyers jittery after putting a full-court press on state legisla- Dealer shakeout blackout. tors in this fall’s lame-duck session to con- Page 29. vince them of the dire financial situation Big Boy the state’s largest health insurer says it’s split: New facing. CEO sought The Blues want quick passage of four after abrupt departure bills to change the individual health insur- of Tony ance market that were originally approved Michaels. in October 2007 by the Michigan House. Page 30. may gain intensity Michaels As the economy sours in Michigan, fi- nancial losses are mounting in the individ- ual insurance market, said CFO Mark Bartlett. Blue Cross is GM-Chrysler merger, predicting $264 million These organizations appear in this in losses in 2009, up $60 week’s Crain’s Detroit Business: million from estimates bankruptcy could add earlier this year. Andries Law Firm ...... 3 “We are losing hun- Atheneum Suites Hotel ...... 11 dreds of millions of dol- to financial woes Bastone ...... 22 lars in the individual Big Boy Restaurants ...... 30 market, and the (bad) BY NANCY KAFFER Blue Cross Blue Shield ...... 3 economy will accelerate CRAIN’S DETROIT BUSINESS Braun Construction Group ...... 32 this rate,” Bartlett said. Café con Leche ...... 1 Bartlett As more companies lay Sales are falling. Costs are rising. Challenges are Chrysler L.L.C...... 21 off employees and small businesses drop mounting. Citizens State Bank ...... 3 group coverage to save money, Blue Cross In a year that’s been increasingly difficult for South- Consumers Energy Co...... 16 predicts up to a 10 percent enrollment gain east Michigan auto dealers, the months ahead will be Detroit Athletic Club ...... 12 in the individual market. significant in determining which dealers fail and Detroit Lions ...... 29 While revenue will grow, Bartlett said, which survive, industry experts say. Detroit Metro Visitors Bureau . . . . . 12 And a much-discussed General Motors Corp.-Chrysler Blue Cross’ losses will increase because Dietz Trott Sports ...... 29 L.L.C. merger could change the equation completely. many of those people have more costly Doubletree Fort Shelby ...... 11 State law protects dealers from franchise termina- conditions to treat because for-profit in- DTE Energy Co...... 16 tion without cause, said John Youngblood, an attorney surers have rejected them for medical un- Eagle Crest Resort ...... 12 with Detroit-based Abbot, Nicholson, Quilter, Esshaki & derwriting reasons. Ford Motor Co...... 21 Youngblood P.C. who represents auto dealers and the De- As the state-mandated insurer of last re- Freitag Event Design ...... 12 sort, Blue Cross must accept those appli- troit Auto Dealers Association, and a merger wouldn’t General Motors Corp...... 21 cants. change that. Golling Chrysler Jeep Dodge ...... 33 As an immediate solution, Blue Cross But with both automakers reporting quarterly losses, Kaydon Corp...... 4 officials want legislators to approve a there’s another option, Youngblood said: bankruptcy. K-Dow Petrochemicals ...... 26 package of bills that would fundamentally If either or both companies were to declare bankrupt- Marquee Investments ...... 32 alter the individual health market. cy before a merger, he said, bankruptcy protection Blue Cross also wants the Legislature to could trump franchise law, allowing the automakers Masco Corp...... 4 grant its for-profit workers’ compensation much more leeway in dealer reduction. McVety and Associates ...... 30 subsidiary — the Accident Fund Insurance Each of the Detroit 3 automakers has been working to Mexicantown Welcome Center . . . . . 1 Lawrence Houston (right), a floor manager at Co. of America — the unencumbered right reduce the number of dealers for years through consoli- Mexicantown Comm. Dev. Corp. . . 32 Northland Chrysler, chats with customer Eugene Mezzattar ...... 1 Taylor on the lot at the dealership. See Blue Cross, Page 31 See Dealers, Page 33 Mich. Dept. of Labor...... 33 Norton & Norton P.C...... 3 Rehmann Group ...... 33 Ricardo Inc...... 21 Southwest Detroit Business Assn. . 32 Star Lincoln Mercury ...... 33 The Inn at St. John’s ...... 14 Defendant to lawyers: Come to Bahamas Warren Bank ...... 32

Macomb County Circuit Judge Diane Druzinski attorney Scott Norton of Birmingham-based Nor- Former Olson Corp. ordered last week that John Olson, 63, formerly of ton & Norton P.C., who represents Citizens in the Grosse Pointe Farms, return to Southeast Michi- case. gan within 10 days for deposition in a lawsuit by “We didn’t really believe when we obtained the president offers to fly New Baltimore-based Citizens State Bank or pay at- order that he’d actually respond by offering to fly torneys’ travel costs to come to Olson. us. We thought it meant he’d get a deposition tak- BANKRUPTCIES ...... 4 His attorney has since offered to make him en here,” Norton said. BRIEFLY ...... 26 lawyers to give deposition “I think this speaks to what his real concern available Wednesday in Nassau, in the Bahamas. BUSINESS DIARY ...... 28 may be. Other people are looking for him, and if “That (date) is within the 10 days of the order’s CALENDAR ...... 27 BY CHAD HALCOM they knew exactly where he’d be in the U.S. on a requirement,” says a letter from Olson’s attorney, CAPITOL BRIEFINGS ...... 6 CRAIN’S DETROIT BUSINESS certain date for court deposition, they might be Henry Andries of West Bloomfield Township- there.” CLASSIFIED ADS...... 26 based The Andries Law Firm. “(But) the language of The president of the shuttered J.M. Olson Corp. in J.M. Olson closed its doors in Macomb County KEITH CRAIN ...... 8 the order is clear that John Olson is only responsi- St. Clair Shores has a choice to make. on May 9, and John Olson personally faces three LETTERS ...... 8 He can return to the United States for a court de- ble for paying for the flights of (three attorneys) lawsuits in Oakland and Macomb counties for al- MARY KRAMER...... 9 position this week or pay for attorneys and a bank and a representative of Citizens Bank.” legedly defaulting on bank loans totaling more OPINION ...... 8 executive to travel to the Bahamas and depose The plaintiffs’ attorneys differ with that inter- than $5.25 million. PEOPLE ...... 28 him there. pretation of the court order and likely will return In the Citizens case, the bank is suing Olson and So, he has offered to pick up the tab — or at least to court to ask Druzinski to clarify it or find Olson RUMBLINGS...... 34 a large share of it. in default on the lawsuit for failing to comply, said See Olson, Page 32 WEEK IN REVIEW ...... 34 20081103-NEWS--0004-NAT-CCI-CD_-- 10/31/2008 6:16 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS November 3, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Falling international sales hurt manufacturers Masco, Kaydon

BY CHAD HALCOM cents to 30 cents a share. nine months of 2008, compared CRAIN’S DETROIT BUSINESS Ann Arbor-based Kaydon Corp. with $55 million, or $1.71 a share, also saw sales begin to slide to- on revenue of $327.7 million for the Until recently, a weak U.S. dol- ward the end of the third quarter, same three quarters of 2007. lar and solid Asian and developing although third-quarter results Expected to report their third- markets were like a much-needed were generally flat. quarter earnings this week are vitamin shot to local nonautomo- Kaydon (NYSE: KDN) manufac- Bloomfield Hills-based TriMas Corp. tive manufacturers, who could off- tures bearings, filtration devices and Ann Arbor-based Tecumseh set any local economic troubles by and other components for the aero- Products Co., also heavy manufactur- building sales overseas. space, military and alternative-en- ers of nonautomotive equipment. But if a global recession has ar- ergy industries. TriMas reported international rived, the products they couldn’t “Dollar strengthening and the sales of roughly $300 million in sell here may not sell anywhere. general economic turmoil that ac- 2007 and has seen several quarters “Our sales celerated during the quarter had a of strong growth in international were down 6 greater impact on our results as customers for its U.S.-made prod- percent, from an the quarter progressed. We contin- ucts. TriMas is a diversified holder international ued to experience a shift in mix of industrial and consumer prod- perspective … away from our more profitable, uct manufacturers. (and) that’s par- short-order business,” Kaydon CEO Grant Beard declined to Sony’s Finest ticularly pro- CEO James O’Leary said in a state- comment on how recent global eco- nounced in the ment. “Export sales of machinery nomic trends affected the company “The XBR8 Series” United Kingdom products had a particularly sharp in advance of TriMas’ earnings re- The Sony® BRAVIA® for our plumb- drop relative to the prior year.” port. XBR®8-Series HDTV represents ing, cabinet and Wadhams Fears are mounting that the re- Sherry Lauderback, vice presi- the next step forward in HDTV window-related cent stock market tumble, fed by a dent of investor relations at Tri- technology, with a charges,” said Timothy Wadhams, banking crisis connected to the Mas, also would not comment on TRILUMINOS® RGB Dynamic president and CEO of Taylor-based U.S. housing market, will trigger a the company’s projections for 2008, LED backlight that utilizes Masco Corp., during a third-quarter global recession. but noted that manufacturing has clusters of red, green, and blue earnings conference call last week. Leaders of the Group of Eight seen effects already from a LEDs to produce breathtaking “The lower sales volume, along nations announced in mid-October strengthening U.S. dollar. images with enhanced color with (special adjustments, led) to a they are planning an emergency “A lot of companies were starting purity. This clustered arrange- decline in return on sales,” Wad- meeting, which could take place as to see an international slowdown, so ment also allows the XBR®8 to hams said. early as this month, to address in- the industry is noticing the dollar display deep blacks alongside Shares of Masco (NYSE: MAS) fell ternational strategies to avoid a fi- getting stronger again,” she said. bright whites, creating images briefly below $9.50 after the compa- nancial meltdown. Nevertheless, she added, the with startling depth and ny announced a decline of nearly 85 Shares of Kaydon reached a company still maintains a very exceptional shadow detail. percent in net income — $33 million, $6999 multiyear low of $22.84 after the positive long-term outlook for in- KDL-55XBR8 or 9 cents a share, on revenue of earnings release last week, which ternational sales markets. XBR models start at $1199 $2.53 billion, compared with $205 fell short of Wall Street expecta- “We’d like to see those markets million, or 56 cents per share, on tions, but also rebounded like Mas- eventually grow to reach close to 50 revenue of $3 billion in the year-ago co and had topped $30. It closed percent of total sales, but that’s quarter. Friday at $32.83. more of a long-term strategic goal,” 37670 W. 12 Mile Rd. Farmington Hills The share price climbed above NW Corner of Halsted Kaydon reported net income of she said. “It’s an aspiration.” $10.20 later in the week after Mas- 248.553.4100 $53.2 million, or $1.67 a share, on Chad Halcom: (313) 446-6796, co announced some corporate staff revenue of $390 million for the first [email protected] visit us at www.PaulsonsAV.com cuts. It closed Friday at $10.15. International net sales were down 11 percent in local currency rates for Masco, which also slashed its projections for the re- STREET TALK mainder of 2008. The manufactur- THIS WEEK’S STOCK TOTALS: 22 GAINERS, 11 LOSERS, 2 UNCHANGED er of home fixtures, furnishings and paint products originally CDB’S TOP PERFORMERS 10/31 10/24 PERCENT called for net income of 50 cents to CLOSE CLOSE CHANGE 65 cents per share for the year. It 1. American Axle $3.41 $1.96 73.98 now expects annual income of 25 2. Amerigon Inc. 4.70 3.09 52.10 3. Pulte Homes Inc. 10.95 8.50 28.82 4. Kaydon Corp. 32.83 27.16 20.88 5. Citizens Republic Bancorp Inc. 2.46 2.04 20.59 6. Borders Group Inc. 3.35 2.79 20.07 7. Credit Acceptance Corp. 14.99 12.55 19.44 BANKRUPTCIES 8. Caraco Pharmaceutical 9.85 8.49 16.02 The following businesses filed 9. Agree Realty Corp. 19.98 17.73 12.69 for Chapter 7 or 11 protection in 10. Energy Conversion Devices Inc. 33.48 30.49 9.81 U.S. Bankruptcy Court in Detroit Oct. CDB’S LOW PERFORMERS 10/31 10/24 PERCENT 24-30. Under Chapter 11, a compa- CLOSE CLOSE CHANGE ny files for reorganization. Chap- 1. General Motors Corp. $5.77 $5.95 -3.03 ter 7 involves total liquidation. 2. Asset Acceptance Capital Corp. 7.97 8.31 -4.09 Enter-Club Inc., 2290 Valley Drive, 3. FNBH Bancorp Inc. 4.25 4.50 -5.56 Ypsilanti, voluntary Chapter 7. As- 4. Rockwell Medical Technologies Inc. 2.54 2.75 -7.63 sets: $36,100; liabilities: $290,738. 5. Perceptron Inc. 4.23 4.60 -8.04 JMP Custom Heating & Cooling 6. Saga Communications Inc. 4.37 4.92 -11.18 Inc., 241 W. Hopkins Ave., Pontiac, voluntary Chapter 7. Assets: 7. Community Central Bank Corp. 2.60 3.01 -13.62 $186,556; liabilities: $1,840,685. 8. Lear Corp. 2.00 2.43 -17.70 Newburgh Investment Properties 9. Dearborn Bancorp Inc. 3.04 4.00 -24.00 L.L.C., P.O. Box 851107, Westland, 10. PSB Group Inc. 3.24 4.70 -31.06 voluntary Chapter 11. Assets: Source: Bloomberg News. From a list of publicly owned companies with headquarters $2,800,001; liabilities: $3,041,710. in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading at less than $5 are not included. — Compiled by Julie Dawso DBpageAD.qxd 10/23/2008 11:57 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS November 3, 2008

CRAIN’S SEEKS M&A AWARD NOMINEES Attorneys spar over Proposal 1 Involved in a merger, acquisition or expansion in 2008? LANSING — The Michigan Coalition for Fishman examined the law such environments would be You may be eligible for the second annual battle over Michi- Compassionate Care. at the request of members of considered public places, sub- Crain’s M&A Awards contest. gan’s medical mari- Capitol Attorneys differ the opposing Citizens Protecting ject to the law’s ban on smok- Crain’s Detroit Business and the Detroit juana ballot proposal Briefings over the proposed Michigan’s Kids coalition. ing marijuana in public places. chapter of the Association for Corporate Growth is honing in on legal law’s impact, such But Cotter last week told But hospitals and doctors will honor companies and individuals in the following categories: interpretations of as whether it pre- Crain’s that the reference to say that’s not clear. ■ language that doesn’t vents employers disciplinary action by a busi- The Michigan Health & Hospi- Best Deal of the Year: Under $100 million and $100 million or more. even appear on the from disciplining ness applies to a business tal Association has been the ■ 100-word description employees who use board or bureau, not an indi- largest contributor to the oppo- Dealmaker of the Year: M&A experts, lenders, CPAs, consultants and attorneys, going before voters. marijuana in accor- vidual business. nents’ campaign, giving among others, are eligible. An attorney at Dyke- dance with the law. Fishman said that’s not his $100,000 of the $125,500 that op- ■ Best Woman or Minority Enterprise Deal. ma Gossett P.L.L.C., a One section of the reading of the language. “I be- ponents have raised. ■ law firm that has done law says, in part, lieve that if an employer Other large contributions to Best Expansions. This Amy Lane is a new category and work for the coalition that “a qualifying looked at that and said it does- the opposing campaign include can include physical patient who has supporting Proposal n’t apply to me, I can almost as- $15,000 from Save Our Society plant expansions, new 1’s passage, last week weighed been issued and possesses a sure that they would be in From Drugs, a St. Petersburg, product lines, in with points that disputed op- registry identification card court,” he said. Fla.-based organization that diversification of client ponents’ claims, including im- shall not be subject to arrest, The National Federation of In- opposes medical marijuana le- base and other similar pacts on employers and work- prosecution, or penalty in any dependent Business-Michigan galization efforts, and $10,000 activities that lead to job places. manner, denied any right or added its voice to the debate from west Michigan business- creation and/or “Proposal 1 was carefully privilege, including but not last week, citing workplace man Dick DeVos, president of economic growth. Two drafted to provide limitations limited to civil penalty or dis- and liability issues that in- the Windquest Group Inc. and categories: Investments of less than $50 million and $50 million or more. and regulations while also al- ciplinary action by a business clude concern that the law former Republican gubernato- ■ lowing the use of marijuana by or occupational or professional would permit marijuana use in rial candidate. Lifetime Achievement: Senior-level executive who has been involved in significant a very small segment of the licensing board or bureau, for the workplace. The campaign supporting transactions and has made a significant the medical use of marijuana general population — those Cotter and Proposal 1 backers Proposal 1 is financed largely impact on the community. people suffering from debilitat- in accordance with this act,” say the law clearly states that it by the Washington, D.C.-based Applications for the M&A awards can be found provided that the patient ing medical conditions,” Dyke- does not require an employer to Marijuana Policy Project, a na- at www.crainsdetroit.com/nominate. The ma Gossett member Sandra meets other requirements un- accommodate the ingestion of tional marijuana policy reform deadline for entering is Jan. 9. Winners will be Cotter said in a memo. der the act. marijuana in the workplace or organization that has given announced at a strolling dinner to be At the heart of the issue is That wording is a reason to accommodate any employee more than $1.74 million in di- scheduled in March. the full, multipage text of the why attorney Steven Fishman, who is working under the influ- rect and in-kind contributions. The Detroit chapter of the Association for proposed legislative amend- partner and chairman of the ence of the drug. The campaign has received Corporate Growth is part of a global ment. The full language does- workplace law group at Bod- Cotter’s memo also coun- more than $1.76 million in total association of professionals involved in n’t appear on the Nov. 4 ballot man L.L.P. in Detroit, has said tered opponents’ contention contributions, including corporate growth, development and mergers but is available on the Michigan that the law specifically pro- that Proposal 1 could result in scores of small contributions and acquisitions. The local chapter was Department of State’s Web site hibits employers from taking patients smoking in hospital from individuals. formed in 1984 and has about 270 members. For more information, see chapters.acg.org/ and the Web site of the group disciplinary action, as Crain’s waiting rooms and doctor’s of- Amy Lane: (517) 371-5355, Detroit. supporting Proposal 1, the previously reported. fices. Cotter and others say [email protected] Did You Get the Message? 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Page 8 CRAIN’S DETROIT BUSINESS November 3, 2008 OPINION We need a plan, not political posturing

conomic development agencies and government offi- cials need a game plan to handle the prospect of even E more idled autoworkers and industrial facilities in the region. So it didn’t help last Friday when the Michigan Economic Development Corp. canceled a work session with area govern- ment and economic development leaders to discuss potential impacts of a General Motors-Chrysler matchup. But we understand why MEDC did that. A couple of elected officials, notably Warren Mayor Jim Fouts, had been all over the media on Thursday, saying the merger had to be stopped to save jobs. The work session be- came political, not pragmatic. With or without the merger, a lot of jobs are going away be- cause there is no business case to support them. The faster the governments and communities affected by a possible merger come up with a game plan, the better off our region will be. As painful as the job reductions will be, the Detroit 3 auto industry and the region have to realign to the realities of the global marketplace. There are more companies selling cars LETTERS now than there were a generation ago, and many of those new- er companies don’t have the legacy costs of Detroit’s 3. What this region needs most is a vision and plan for keep- Buying local is buying smart ing and attracting companies that create jobs. We need a kind of Marshall Plan that involves government, lenders, economic Editor: Crain’s Detroit Business High taxes hurt us all developers and others. We might also tap some of the brain- Shopping locally (Mary Kramer: welcomes letters to the editor. power held by the CEOs of Michigan’s most successful compa- “Good things happen when we buy Editor: All letters will be considered for nies outside the auto industry for their best ideas. local,” Oct. 6) is not just smart and I am shocked by the latest argu- publication, provided they are ments being presented that raising the right thing to do, it’s easy and signed and do not defame can help add to the renewed sense of taxes on businesses will be good individuals or organizations. for citizens. How can we have pride in our past and optimism for Letters may be edited for length A nonautomotive success story our future that’s beginning to take healthy communities if we don’t and clarity. have healthy businesses? hold across our city and region. Write: Editor, Crain’s Detroit And now for some good news. Detroit’s past is filled with The easiest promise to make is Business, 1155 Gratiot Ave., to promise to raise taxes on “big Last week’s purchase of Ann Arbor-based HealthMedia countless stories of great success Detroit, MI 48207-2997. and overcoming challenge, and business,” because it feels so cor- Inc. by New Jersey-based Johnson & Johnson was welcome E-mail: [email protected] our history tells us we always rupt and greedy. Those big busi- news for many reasons. nesses are the heartbeat of our come together with hopes of a economy and the fuel of the great First, the company and its 150 employees stay put in Michi- brighter tomorrow. own recently created uniquely De- American dream. The businesses gan. Second, the company was spun out of the University of When shopping locally, also re- troit items, including the new 2009 in Michigan are stressed right now Michigan, which licensed its technology. Finally, HealthMe- member our region’s outstanding Days of Detroit calendar and one of and at risk of contracting to a de- nonprofit museums, performance the area’s largest selections of dia, which offers online wellness and disease-management gree for which we are not pre- venues, galleries and zoos — many metro Detroit-themed books, programs, is a success story for venture-capital patience. At pared. To further tax these busi- of which operate excellent on-site prints and posters. least three venture funds invested in the company. And, as we I applaud Mary Kramer’s deci- nesses will only lead to more lost and online stores. We, too, need jobs and greater economic uncer- report in Rumblings on Page 34, those funds reported the sale your support. sion to buy locally. Let’s all make the effort and positively impact tainty for Michigan and Detroit. produced at least a 10-fold return on those investments. At the Detroit Historical Muse- Let’s face it, a good controversy um, we are pleased to feature local- both our local economy and our Michigan long has overlooked or underestimated the state of mind. sells newspapers and encourages nonautomotive companies in our state. ly made products from some of the people to tune in to the local broad- city’s iconic brands, such as Fay- Robert Bury Stories like these can help change the perception of our Executive director & CEO casts. For every corrupt business go, Sanders, Better Made and Ger- Detroit Historical Society state – both from within and from the outside. mack, as well as a selection of our Detroit See Letters, Page 9

KEITH CRAIN: Amid chaos, Cobo gets closer to reality Maybe it’s just the election sea- most sense to put most International Auto Second, Detroit gets more intro- such an overwhelming number of son, but it really looks like they, of your introductions in Show and is investing ductions of new cars, new proto- introductions, they can’t ignore the the politicians, just might get one place to keep the millions of dollars in types, show cars and all sorts of show. Almost 7,000 journalists show something accomplished with costs as low as possible. the facility to make it other premiers that those journal- up in Detroit in January from all Cobo Center. Unfortunately, they even more appealing to ists can write about in the next over the country and the world. No promises. In fact, anything don’t seem to be doing the press and to the weeks and months. Cobo Center desperately needs that might be agreed upon will be that. The Los Angeles public. The two feed on each other and renovation and expansion. It’s im- very fragile until it all gets carved Auto Show seems to Remember that the need each other. portant to invest some money to in concrete. continue to be in a large success of the motor Most foreign journalists can’t go protect the half a billion dollars of In a recession, you can’t help but consumer market that’s show in Detroit is due to two motor shows a month apart economic activity this show think that the automobile compa- constantly nipping at to two simple facts. in the U.S., so they pick the one brings to Southeast Michigan nies would be grateful for a single, the heels of Detroit. First, Detroit, as the es- that has the most introductions. every year. international motor show. The expansion of tablished international If most foreign journalists had If we want to keep that $500 mil- Sure, the United States has Cobo is critical to tell show, gets more auto- their choice, they’d make their one lion, it’s time to invest in Cobo. many shows around the country, the world that the city of Detroit is motive press than any other U.S. trip to Los Angeles instead of De- Our community and our citizens but it would seem to make the committed to this North American show by thousands. troit in January. But Detroit has deserve nothing less. 20081103-NEWS--0009-NAT-CCI-CD_-- 10/31/2008 12:35 PM Page 1

November 3, 2008 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Election rumors swirl around governor

Could the outcome of Tuesday’s first on Officially, Keenan Rustem credited Keenan for helping Granholm described Keenan as election have a special impact on crainsdetroit.com Oct. was Granholm’s legal to shape Granholm’s push to grow “the kind of guy who could think of Michigan? Rumors swirled last 30 and on Page 34 in this adviser. But he was also alternative energy as an emerging nine reasons not to do something week that Gov. Granholm is poised issue, the bill’s sponsor, her gatekeeper and economic sector in the state and instead of figuring out how to make for an appointment in an Obama term-limited Rep. Steve close adviser. In the gov- bringing in Stanley “Skip” Pruss to something work. He thought too administration. The rumor mills Bieda, D-Warren, said ernor’s press release an- oversee renewable energy and ener- much like a lawyer. He saw too put her everywhere from energy clarifying the process to nouncing the move, she gy-efficiency projects. many sides and only the risk.” secretary to a federal judgeship. fill such a vacancy was called him one of the That led to reorganizing a key Of course, all this speculation Fueling speculation was the in- just part of his desire for “most loyal and trusted state department this month into requires one tiny detail to come to troduction on Wednesday of a plan “good government.” advisers with whom the Michigan Department of Ener- fruition: Obama would have to win to amend the state constitution to Another event fuel- I’ve been associated.” gy, Labor and Economic Growth Tuesday. fill a vacancy in the office of lieu- ing speculation is the Bill Rustem of Public headed by Pruss. Mary Kramer is publisher of tenant governor. If Granholm did departure of Granholm Sector Consultants de- But to many who sought to offer Crain's Detroit Business. Catch her leave office, Lt. Gov. John Cherry aide Kelly Keenan, first reported scribed Keenan as an “under the Granholm advice or bend her ear take on business news at 6:50 a.m. would become the acting gover- by Crain’s Amy Lane on crainsde- radar adviser” who was “cautious on issues or projects, Keenan was Mondays on the Paul W. Smith show nor. But how his slot would be troit.com on Oct. 27. Keenan will and protective of her. He was help- often too cautious. on WJR AM 760 and in her blog at filled is murky. start his own consulting and legal ful to her, and he kept her out of A Democratic operative who had www.crainsdetroit.com/kramer. As Crain’s Amy Lane reported practice in Lansing. some things. She will miss that.” worked both for Ed McNamara and E-mail her at [email protected].

LETTERS CONTINUED ■ From Page 8

leader, there are thousands of hon- est, hard-working and generous leaders who are rarely mentioned. Our businesses are predominantly run by great Detroiters who give back in very significant ways. Our local businesses contribute millions of dollars to our communi- ties through their foundations, their support of individual employ- ee community involvement and their participation in large-scale fundraising. To imply that raising taxes on businesses because they ighly ranked. Again. are greedy and that the taxes will help the community is inconsistent with facts and history. I am supporting the presidential candidate who best understands that healthy businesses mean healthy communities. I have faith in the honor and integrity of busi- nesspeople in America, Michigan and Detroit. I have faith in the honor and integrity of John Mc- Cain. Patricia Poppe Bloomfield Township Satisfied with Shuman Editor: After reading the article about Shuman Chrysler Jeep (“No frills — and no Dodge,” Sept. 22), I hope that they are allowed to keep sell- Consistently ranked a Small Business Administration National Top 20 Lender, ing vehicles for Chrysler without a Dodge line at their dealership. Huntington is proud to announce that we recently ranked number one for lending As a consumer who has driven a the most money through SBA loans in Ohio, Indiana and Kentucky. We are equally Jeep for over 10 years, Shuman is the only place I will go to buy my proud of also making the most SBA loans in Ohio and West Virginia. next Jeep. Three Jeeps later, I still work with Cindy, the same rep I bought my first Jeep from. Walking into a dealership can be While being recognized for our achievements is always an honor, it pales in comparison intimidating, but not at Shuman. to the honor it is to have the trust of small businesses nationwide banking with us They make you feel at home. While buying my last Jeep for their fi nancial needs. there, an elderly man walked up to my sales rep and starting talking to her about his wife. Cindy knew him through years of working with this man. She truly enjoyed seeing this man, who was in for a service call but wanted to stop by and say hello. She excused herself for a minute and got up to give him a hug. She could tell he needed one, because he told her that his wife was sick. I have never seen 1-866-921-4990 | huntington.com that in a dealership before. Bob Shuman and his staff have exceeded the bar for customer ser- vice and sales for Chrysler. Small Business Administration ranking is based on the 2008 Coleman Report 500 for Top 50 7(a) Lenders by Number of Loans and Loan Volume. The Huntington National Bank is an Equal Housing Lender and Member FDIC. ,® Huntington® and A bank invested Terri O’Brien ® Northville in people are federally registered service marks of Huntington Bancshares Incorporated. ©2008 Huntington Bancshares Incorporated. DBpageAD.qxd 10/28/2008 3:41 PM Page 1

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November 3, 2008 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Who’s coming to Detroit?

Daniel Duggan The skinny on upcoming covers real estate meetings and conventions and hospitality. in Detroit, and Crain’s List Call (313) 446-0414 or of Largest Meeting write dduggan Facilities. Page 15. @crain.com. meetings & Conventions

Daniel Duggan Financing key for new Hyatt The city of Novi likes the idea of a Big on small meetings new hotel being built next to the Rock Financial Showplace. The Hyatt chain likes the idea, and committed its new Hyatt Place flag to Developers’ goal: Get small business groups to pick Fort Shelby the project. And Blair Bowman, co-owner of the privately funded convention center, is BY DANIEL DUGGAN confident enough in the project to CRAIN’S DETROIT BUSINESS move forward. The question now: How much will it hen the Fort Shelby Hotel first opened in 1917, the cost to get it financed? goal was to offer affordable accommodations for the Most investors now deem real es- W business traveler. tate projects to be risky, regardless of When developers set out recently to revamp the Detroit how risky the projects really are. As a hotel after it had been closed for 10 years, they tried to bring back to life many of the historic features. result, those who want to loan money They also will go after the same consumers as the first it- are asking for higher fees and interest eration: business travelers. rates. In this case, the specific angle is the small-meeting mar- T S ALL IN THE DETAILS “Risky” is rarely a word used for ket. The decision was based on the layout of the building, I ’ Bowman’s project. said Bill Aprill, director of sales and marketing for the Dou- Developers focused not only on restoring The Novi Expo Center was created bletree Guest Suites Fort Shelby/Detroit Downtown. much of the hotel’s historic features, but in the late 1990s by Bowman when he “The physical building lent itself to this type also on giving the bought and converted an old liquor dis- of product,” he said. “It’s per- 90-year-old hotel a tribution building. With enough momen- fectly designed for small more corporate tum, he developed a 320,000-square- meetings.” feel. The hotel, part of the $90 mil- foot facility, which opened in August lion redevelopment, will have 2005. And to help shoulder the cost, 20,000 square feet of meeting he picked up Rock Financial, part of space, but the largest single Quicken Loans Inc., to be the corpo- FORT SHELBY PHOTOS BY NATHAN SKID/CRAIN’S space is just 2,900 rate sponsor for the facility. square feet, which Furniture in “When we opened in 2005, the idea ABOUT THE FORT SHELBY would hold up to 300 peo- the meeting was always to have a Phase 2 with a ple. The other 18 rooms rooms will be Ⅲ Cost: $90 million redevelopment. Aprill hotel attached,” he said. “Our cus- Ⅲ range from 500 square feet actual office Location: Fort Street near Union to 1,000 square feet. desks and chairs, tomers have been asking for it for a Station With such small rooms, the design is config- not redistributed couple years.” Ⅲ banquet furniture. Developer: MCP Development ured for a setting in which a large group of people For $13 million to $15 million, the L.L.C. Principals in MCP are attend a lecture in a main room and then break 132-room hotel would be Hyatt Place’s Developer Emmett Moten Jr., out into individual rooms for specialized infor- entrance to the Detroit market with a Oakland County businessmen Eugene Curtis and Leo Phillips, with Rich mation. new “edgy business travel” line of ho- Curto of Chicago-based RSC and Aprill said the Fort Shelby, set to open Dec. 15, will com- tels. Associates. pete by offering the service and amenities aimed at As of two weeks ago, the project has Ⅲ Hotel operator: Hilton Hotels corporate meetings of roughly 150 people. earned site plan approval by the Novi Corp., owner of the Doubletree flag. The hotel will offer a more corporate City Council, and the deal with Hyatt Ⅲ Size: 204 hotel rooms. feel through its amentities and high- has been signed. The only component Ⅲ Lodging prices: Average weekday tech offerings. left is finding financing. rate of $189, weekend rate of $129. To compete with the new properties in town, such as the Fort Shelby, the But getting financing for hotels is Ⅲ Event prices: The average dinner COURTESY HERMAN MILLER is $30, and the typical wedding will Atheneum Suites Hotel and Conference Center in Greek- very, very hard, said Chuck Skelton, be $75 per person. town has embarked on a $3.5-million upgrade to the president of Ann Arbor-based Hospitali- 174 suites in the hotel, said Debora ty Advisors Consulting Group Inc. Mancini, director of sales and market- “Hotels are always risky to in- ing. Workers vestors,” he said. “You can sign a long- But the Atheneum is offering some- cleaned the hotel’s name term lease for an office building. But in thing the Fort Shelby can’t, she said: Ex- above the a hotel, you’re signing a new lease perienced staff and a longtime track- entrance. every night.” record of strong service. Bowman has several financing op- “Our people, our service, gives (customers) a reason not to leave,” she said. “Most of our tions lined up, he said, but the problem employees have been around for 10, 15 is that the cost of borrowing money years.” right now makes it hard to like the The Fort Shelby, though, is raising the deal. stakes in creature comforts. Furniture in the “Is this a case where we have to rec- meeting rooms, for example, is actual office ognize that this is a sign of the times, furniture with desks. The chairs, purchased The hotel’s banisters or do we wait until things readjust and from Zeeland-based Herman Miller Inc., are were restored. the freeze starts to thaw?” he said. the type of lightweight chairs with ad- Bowman says if he has to wait, he justable lumbar supports and armrests found in most of- will. fices. “It’s important that we’re not taking banquet furniture “I look at things long-term,” he said. and using it for the meetings,” Aprill said. “The capital markets will adjust and All 19 meeting rooms will have a 56-inch flat-screen come back. And I want to have a shovel New carpeting covers the hotel’s hallways. in the ground when they do.” See Fort Shelby, Page 12 20081103-NEWS--0012-NAT-CCI-CD_-- 10/31/2008 11:24 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS November 3, 2008

FOCUS:MEETINGS & CONVENTIONS

NATHAN SKID/CRAIN’S DETROIT BUSINESS A view of the Detroit River from the Doubletree Guest Suites Fort Shelby. Do you have Fort Shelby: an HR opening? New hotel Our Professional Placement service provides HR specialists for the short term or the long haul. You decide. targets small groups ■ From Page 11

television and a built-in audiovisu- al system to cut down on costs for HILTON PICKS OFF PICK users. In addition, the hotel’s meet- ing staff is located in the meeting Detroiters knew it as the Pick-Fort Shelby hotel. It’s now called the area, rather than at the front desk. Doubletree Guest Suites Fort The 203 guest rooms are de- Shelby. signed for business travelers, with So where’s the “Pick”? high-speed Internet available The hotel was operated as part of through wireless and wired con- the Albert Pick Hotels chain, owned (248) 353-4500 ASEONLINE.ORG nections. There also are plenty of by Albert Pick after he bought the plugs at the in-room desks. 
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 hotel in 1951. Hilton kept the Fort “The average business traveler Shelby portion of the name but not © 2007 ASE has three plug-in items now,” the name of another hotel Aprill said. “We have a lot of plugs company, said Bill Aprill, director of at desk-level for those people.” sales and marketing. Aprill said in-room safes have been designed to be large enough Right now, there is enough busi- to accommodate a laptop comput- ness to go around in the meeting er. business, said J.G. Ted Gillary, ex- There also will be meeting ecutive manager of the Detroit Ath- rooms on four of the 10 hotel floors. letic Club. While there are lots of On the 10th floor, there is a room new venues, the real key will be to with an executive suite, where a sustain quality over time, he said. Mileage Reimbursement Rates Continue To Rise CEO can have a small, exclusive “Overall, this is a market for meeting. high quality,” he said. 0DQDJH\RXUFRPSDQ\¶VEXVLQHVVPLOHVFRVWHIIHFWLYHO\ The hotel staff also has gone to There has been a lot more com- the length of being certified by the petition in Detroit’s small-meeting Vehicle Operating Expense Comparison International Association of Confer- venue market in recent years, Red: ,560LOHDJH5DWHGreen: ()06HGDQ)OHHW ence Centers. This certification has making prices and packages a lot $0.700 been given to only one other hotel more competitive, said Denny Fre- $0.650 in Southeast Michigan, the Eagle itag, owner and president of De- troit-based Freitag Event Design. $0.600 Crest Conference and Resort in Ypsi- lanti. “There are a lot of choices, but $0.550 Eagle Crest General Manager that’s good, and it makes my job a $0.500 Bruce Szcodronski said roughly 20 lot easier,” she said. An additional $0.450 percent of his business comes from hotel will make prices more com-

Cost Per Mile $0.400 people interested in the IACC cer- petitive and force existing venues tification. to try harder to impress con- $0.350 “It helps for people in the busi- sumers, Freitag said. $0.300 ness world,” he said. “Clients Comfort items, such as the 2004 2005 2007 07/2008 2010 know they won’t be coming to a chairs being used at the Double- banquet facility that’s turned into tree, don’t have as big of an impact JULY ,56UDLVHVPLOHDJHUHLPEXUVHPHQWUDWHDJDLQWRFHQWVSHUPLOH a classroom. They know there are as price and service; but when all There’s a better way to control costsUHODWHGWREXVLQHVVYHKLFOHXVDJH(QWHUSULVH certain standards.” things are equal, a comfy seat can )OHHW0DQDJHPHQWFDQKHOS\RXRUJDQL]HDQGUHGXFHH[SHQVHVWKURXJKDZRUNLQJ Going after small meetings is be a dealmaker. SDUWQHUVKLSWKDWHQVXUHV\RXUIXWXUHEXVLQHVVYHKLFOHQHHGVDUHDOZD\VPHW7KHUH¶V key for a hotel, making up roughly “When I’m planning a meeting, I QRQHHGWRVHWWOHIRUDFHQWVPLOHDJHUHLPEXUVHPHQWUDWH half the business, said Chris Baum keep in mind that these people will senior vice president for sales and be sitting for eight or nine hours,” :HZLOOKHOS\RXUEXVLQHVVWR marketing at the Detroit Metro Con- she said. “These people are expect- ‡,PSURYHFDVKÀRZE\WDNLQJDGYDQWDJHRIDYDULHW\RIÀH[LEOH vention & Visitors Bureau. ing to be uncomfortable.” IXQGLQJRSWLRQV With a good location — a few The Fort Shelby has signed 11 ‡%HWWHUPDQDJHIXHOFRVWVWKURXJKDXQLYHUVDOIXHOSURJUDP blocks from Cobo Center and in events, with 14 contracts pending. ‡5HGXFHOLDELOLW\H[SRVXUHDQGSRWHQWLDOFRYHUDJH the central business district — the Bookings for small meetings are LVVXHVE\HOLPLQDWLQJWKHQHHGWRWUDFNHPSOR\HH¶V Doubletree will have a strong usually done 30 days to 90 days in LQVXUDQFHFRYHUDJH chance for success, Baum said. advance. Since the hotel will open But, he said, it will face the same in December, now is the time to get Let us show you how easy it is to down economic conditions as oth- bookings going, Aprill said. KDYHDFRVWHIIHFWLYHHI¿FLHQWÀHHW er hotels not just in Detroit but “We’re in the heat of battle right across the country. now,” he said. “This is a competi- &RQWDFWIRUGHWDLOV “Nobody knows what kind of im- HQWHUSULVHÀHHWFRP pact this economic condition is go- tive market, so we’re out there ing to have,” he said. “The real pursuing everything we can find.” question, after Jan. 1, is: ‘Will they Daniel Duggan: (313) 446-0414, be traveling?’ ” [email protected] DBpageAD.qxd 10/16/2008 11:23 AM Page 1

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Page 14 CRAIN’S DETROIT BUSINESS November 3, 2008

FOCUS:MEETINGS & CONVENTIONS Event centers get aggressive We Are Pleased To Announce as businesses cut spending

that BY MIKE SCOTT snack items or electing to go with SPECIAL TO CRAIN’S DETROIT BUSINESS less pricey menu items. For The Inn at St. John’s, a strat- MBT HAS ACQUIRED Budget-conscious clients are egy during the downturn this year MBT HAS ACQUIRED causing local conference and event has been to market to businesses centers to develop more affordable in other Midwestern cities, such as packages or more aggressively Cleveland and Chicago. These The deposits Ofof court new prospects. businesses are increasingly look- Main Street Bank The market has ing at other venues, been relatively even in other states, In Plymouth and Northville, Michigan healthy for some to hold such events facilities until re- at a lesser cost, cent months, when Johnson said. MBT has assumed all deposits of Main Street Bank. an influx in can- “The (Detroit Metro cellations and cut- On Saturday October 11, all branches reopened as MBT. Convention & Visitors backs occurred, Bureau) has been a MBT is honored to have been a financial stronghold in Michigan for the past 150 years. said Tawnya John- big help to us, and We look forward to serving the Plymouth and Northville communities with son, director of we felt this was a sales and market- the same high caliber financial solutions that have made our name synonymous good strategy be- ing for The Inn at St. cause it prevents us with stability and strength for the past century and a half. John’s in Ply- from being totally mouth. The major- reliant on the De- ity of cutbacks ap- troit market,” John- pear to be for The Inn at St. John’s conference room. son said. business meetings UM’s Office of and corporate holi- Continuing Medical Education day parties, Johnson said. two weeks ago held a course in Ply- Both 2006 and 2007 were record mouth on handling child abuse years for the Plymouth facility, cases medically. It was attended by site of the former St. John Semi- more than 300 physicians, social nary. But rev- workers and law enforcement per- For further information about MBT, please visit www.mbandt.com or call 734-242-2205 MEMBER FDIC enue is expected sonnel. to be relatively Yet Schwartz and her staff are an- flat in 2008 and ticipating the attendance to such possibly de- events could decline by 10 percent crease in 2009. to 20 percent in 2009. During past “We’re guess- economic downturns, fewer poten- ing the demand tial attendees choose to travel long will be down, so distances for such events. it is going to “We haven’t seen a significant Johnson take more dili- drop in attendance at our semi- gence from our nars yet — but that could change if sales team to continue growing the some of the grants we have re- business,” Johnson said. “Meet- ceived from the pharmaceutical ings and conferences will be back, companies dry up as they cut back but right now things are slow.” their costs,” Schwartz said. Mary Schwartz, program coordi- Rock Financial Showplace han- nator for the Office of Continuing dles corporate events from 5 to Medical Education at the University 5,000 people in its 300,000-square- of Michigan, said that while her de- foot facility. In recent months, partment continues to hold numer- Bowen has noticed an influx of in- ous seminars and meetings ternal and external strategy meet- around Michigan, the solicitation ings, rather than traditional from state, national and even in- events, at the Novi facility. Compa- ternational destination sites has nies that operate in industries become overwhelming in recent such as green and alternative en- years, Schwartz said. ergy, biomedical and biofuel also “I’m inundated by (facilities) in have increased the amount of mon- California, Mexico and the ey they spend on events while oth- Caribbean, who want a piece of er industries have cut back. our spend,” said Schwartz, who es- “Even in this economy, we see timates that her group manages some opportunities,” Bowen said. eight to 12 large events per year “Customer service is paramount that attract mainly physicians. because (all event venues) are vy- It is a competitive market for ing for the same clients.” event planning facilities and ser- Johnson said companies also vices from a pricing standpoint can save money on their events by too, said John Bowen, executive working with planners to identify director of the Rock Financial Show- periods of the year that are less in place in Novi. Companies can ben- demand. Sunday and Monday ho- efit from packages that can include tel costs for Monday and Tuesday customized pricing, Bowen said. seminars, for example, are in less Even those businesses still hold- demand than later days in typical ing events are noticeably cutting weeks, and such attention can back on costs, Bowen said, particu- save meeting planners 5 percent larly the money spent on techno- to 20 percent in costs Johnson logical effects, including audiovi- said. sual aids and interactive “If you have your seminar on a presentations. Monday and Tuesday with a Sun- “Most of our repeat customers day night arrival, that could aren’t absolutely cutting events equate to some savings,” she said. out of their budget, but what they Eliminating themed events could are doing is making them simpler also save 10 percent to 25 percent and cutting out some of the on meeting costs because planners (frills),” Bowen said. This also in- won’t require extra printing, sig- cludes cutting back on food and nage and props, Johnson said. 20081103-NEWS--0015-NAT-CCI-CD_-- 10/30/2008 3:58 PM Page 1

November 3, 2008 CRAIN’S DETROIT BUSINESS Page 15

CRAIN'S LIST: LARGEST MEETING FACILITIES Ranked by total square feet of meeting space Convention Total Capacity of largest square feet meeting room Facility of Square feet theater/classroom Number of business up Address meeting of largest banquet/cocktail meeting Rank Phone, Web site Top executive space meeting space style rooms Amenities in ’08, may Cobo Center Tom Tuskey, 875,000 390,000 12,000/12,000 75 Free wireless Internet access, 2,200 on-site parking spots, 1. 1 Washington Blvd., Detroit 48226 director 12,000/12,000 concierge and business center, on-site catering, contractors drop in ’09 (313) 877-8777; www.cobocenter.com on-site to provide services to meetings and trade shows The Henry Ford Patricia 544,020 22,000 600/NA 80 Horse-drawn carriages, Model T rides, historic carousel, steam Despite this year’s may- 20900 Oakwood Blvd., Dearborn 48124 Mooradian, 800/5,000 locomotive, historic re-enactments, entertainment, tours, oral scandal resulting in a 2. (313) 982-6100; www.thehenryford.org president and CEO curators, audiovisual, fireworks, gardens and private courtyards with most venues, organic and local menus few lost conventions, 2008 available proved to be a good year Rock Financial Showplace/Diamond John Bowen, 240,500 215,000 6,000/6,000 16 2,500 square feet of pre-function space, 18-foot ceilings, for conventions in Detroit. Conference Center executive director 6,000/6,000 high-speed wireless Internet access, more than 2,500 parking But next year is expected to 3. 46100 Grand River Ave., Novi 48374 spaces be an “off year” for Mid- (248) 348-5600; www.rockfinancialshowplace.com west cities overall, said The Masonic of Detroit Greg Bellamy, 145,000 44,000 4,400/500 15 Full service catering, audiovisual capabilities, valet or Chris Baum, senior vice 500 Temple St., Detroit 48201 general manager 700/1,000 self-parking options president of sales and mar- 4. (313) 832-7100; www.themasonic.com and Steve Genther, operations keting for the Detroit manager Metro Convention & Visi- tors Bureau. Fox Theatre Dana Warg, 125,000 NA 4,800/200 1 Large auditorium space, close to Comerica Park and Ford Field 5. 2211 Woodward Ave., Detroit 48201 president 800/1,200 “Every once in a while, (313) 471-3200; www.olympiaentertainment.com conventions seem to head Detroit Science Center Aimee Lloyd, 110,000 B 5,458 230 C/40 5 Valet parking, three preferred caterers, onsite cafe, wheelchair to the two coasts, and that’s 6. 5020 John R St., Detroit 48202 special events 175/800 access, science store, traveling exhibits, three hands-on exhibit what is happening next (313) 577-8400; www.detroitsciencecenter.org coordinator laboratories, two demonstration stages, IMAX theater, year,” he said. planetarium, open amphitheater and stage Baum said this year Macomb Community College James Jacobs, 108,000 61,000 2,880/NA 20 Free parking and Internet, complete in-house catering services brought in an interesting 7. 14500 E. 12 Mile Road, Warren 48088 president 300/NA (586) 445-7999; www.macomb.edu mix of conventions, and considerable progress was Detroit Marriott at the Renaissance Bill Ninivaggi, 100,000 26 2,500/2,000 34 Restaurant, room service, sauna/steam room, wheelchair made in changing the im- Center general manager 2,200/3,000 access, Internet access, dinner, lunch, full breakfast, valet 8. Renaissance Center, Detroit 48243 parking, fitness center, new lobby, concierge lounge age of Detroit nationwide. (313) 568-8000; www.detroitmarriott.com Already, 2010 has substan- tial advanced bookings. MotorCity Casino Marian Ilitch, 67,000 11,890 2,220 D/2,220 9 Audiovisual, including video and teleconferencing 9. 2901 Grand River Ave., Detroit 48201 owner 1,500/1,379 capabilities; individualized HVAC meeting rooms; dedicated The bureau expects a to- (877) 777-0711; www.motorcitycasino.com meeting concierge; pre-function areas; wireless tal of 206 meetings and Hyatt Regency Dearborn Arif Hashmi, 62,531 17,700 1,800/1,100 37 Restaurant and lounge, room service, indoor pool, sauna/ conventions through the 10. 600 Town Center Drive, Dearborn 48126 general manager 1,200/3,800 whirlpool, fitness center, free parking, valet parking, breakfast, end of 2008, an increase of (313) 593-1234; www.dearbornhyatt.com lunch, dinner, high-speed Internet access, wheelchair access, 8.4 percent over 2007. To- business center, concierge's level tal attendance would be Washtenaw Farm Council Grounds Ly nn Rich, 55,000 5,600 0/NA 8 20 acres of parking, central public-address system, heated and 254,492, up 18 percent assistant manager 800/2,000 insulated, off-premises catering permitted, banquet facility, 5055 Ann Arbor Saline Road, Ann Arbor 48103 over 2007. The number 11. (734) 429-3145; www.washtenawfarmcouncil.org and Stan Poet, 400-foot track area with bleachers and sound system, 62 manager electrical campsites, dump station on grounds, DSL, ATM, can only includes the meetings provide local phone service to exhibitors on request and conventions handled Laurel Manor Banquet and Conference John DelSignore, 50,568 23,000 2,300/1,200 11 Wi-Fi facility, videoconferencing services, audiovisual directly through the bu- 12. Center; 39000 Schoolcraft Road, Livonia 48150 CEO 1,600/2,200 equipment and technicians to assist, more than 8 acres of reau. It does not include parking, digital marquee to advertise events (734) 462-0770; www.laurelmanor.com what member hotels may The Inn at St. John's Paul Wegert, 48,000 6,800 500/400 22 Complimentary wireless Internet, on-site catering and golf have booked. 13. 44045 Five Mile Road, Plymouth 48170 general manager 400/500 course, outdoor gardens and courtyard for cocktail receptions, “Meeting planners say to two restaurants, on-site boutique hotel (734) 414-0600; www.stjohnsgc.com me ‘I hear good things Burton Manor Banquet William Johnson, 44,000 35,000 4,000/1,900 8 On-site catering; trade-show decorating; continuous, about Detroit.’ The impor- and Conference Center CEO and owner 2,200/3,000 unobstructed meeting space; high-speed Internet access; tant thing is (our new im- public-address microphone/speaker system in all rooms; 14. 27777 Schoolcraft Road, Livonia 48150 age) is breaking through,” (734) 427-9110; www.burtonmanor.net advanced multimedia audiovisual equipment and technical support staff Baum said. “Meanwhile, Crystal Gardens Livingston Joseph Thomas, 33,000 12,000 1,300/700 5 Two-story lobby with grand staircase, in-house catering, Chicago is so expensive; it 15. 5768 E. Grand River Ave., Howell 48843 president 900/1,200 complete sound system, wheelchair access, off-site catering is pricing itself out of the (517) 545-1000; www.crystalgardenslivingston.com available market.” VisTaTech Center at Schoolcraft John Walsh, 31,720 7,471 600/399 13 Meeting spaces and classrooms for large and small groups, Judy Dufour, director of College executive director 400/400 advanced telecommunications technology throughout, on-site sales and marketing for the 16. 18600 Haggerty Road, Livonia 41852-2696 of development A/V and IT support, two computer labs, flexible furniture Detroit Marriott at the Re- (734) 462-4610; vistatech.schoolcraft.edu and governmental configurations, on-site catering services, instructional kitchens, relations American Harvest Restaurant naissance Center, said the Best Western Sterling Inn Banquet and Victor Martin, 30,465 15,095 2,200/1,076 12 Certified executive chef and in-house pastry chef, in-house hotel is using a bureau pro- Conference Center general manager 1,420/1,400 audiovisual department, automobile and large display exhibit gram called Let’s Meet in 17. 34911 Van Dyke Ave., Sterling Heights 48312 and president entry, wireless high-speed Internet access in all meeting rooms the D that encourages lo- (586) 979-1400; www.sterlinginn.com and lobby, full-service hotel adjoining with 246 guest rooms and suites, adjoining full-service restaurant cally-based companies to host meetings here. Ann Arbor Marriott Ypsilanti Tom Lamb, 30,000 8,992 1,000/500 27 On-site championship golf course, IACC-approved conference The hotel’s is connecting at Eagle Crest general manager 640/1,300 center, on-site audiovisual support, UN-style auditorium, 18. 1275 S. Huron St., Ypsilanti 48197 outdoor event areas available, wireless Internet access, indoor with the top officers of De- (734) 487-2000; www.annarbormarriott.com pool, tennis courts troit area-based companies who also are heads of na- MGM Grand Detroit Casino Lorenzo Creighton, 30,000 14,000 1,500/900 12 Hotel, complimentary valet, three signature restaurants, five 1777 Third Ave., Detroit 48226 COO and 1,000/1,200 cocktail lounges, complimentary high-speed wireless Internet, tional associations and 18. (313) 465-1777; www.mgmgranddetroit.com president concierge level, resort-style spa and salon, fitness center, planting the seeds for them 100,000 square feet of gaming space to get their association to Westin Book Cadillac Tim Freisen, 30,000 8,000 1,000/425 13 Westin Workout, indoor pool, spa, three restaurants, Motor meet in Detroit. 18. 1114 Washington Boulevard, Detroit 48226 general manager 650/1,000 Bar, valet parking, 24 hour in-room dining, business center Baum said Detroit has (313) 442-1600; westin.com/bookcadillac had an increase in Michi- This list of meeting facilities is an approximate compilation of the largest such facilities in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing, but the most comprehensive available. gan associations interest as Sports facilities not included. NA = not available. well. B Includes 80,000-square-foot addition “We’re pursuing Lansing C IMAX Theater capacity: 230. Planetarium capacity: 110 people like Washington, D Conference center also includes a 1,886-seat theater D.C., people. Many of LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH them live just 100 miles from here... and do not Convention calendar know how much has changed in the city.” SignificantSignificant conventionsconventions scheduledscheduled forfor thethe balancebalance ofof 20082008 andand forfor 2009,2009, byby organization,organization, monthmonth andand estimatedestimated attendance:attendance: Right now, the bureau is soliciting the Alcoholics 2008 2009 ■ Michigan Science Teachers ■ Gem and Lapidary ■ League for Innovation in ■ ■ Association, March: 2,500 Wholesalers Gem Show, the Community College, Anonymous convention for Michigan Association of Michigan Townships 2020. Detroit and Los Ange- Public School Academies, Association, January: 3,000 ■ Michigan DECA Career April, July, October: 14,000 October: 3,000 November: 1,200 ■ Development Conference, ■ American Communications les are finalists for a conven- Michigan Association of tion that would draw about ■ Michigan Engineering and Computer Users in Learning, March: 3,000 Network, September: 8,000 Science Youth Expo, March: 4,000 ■ Mary Kay Inc., 67,000 and bring $48 mil- November: 15,000 March: 2,000 lion into the economy. — Marti Benedetti Source: Detroit Metro Convention & Visitors Bureau 20081103-NEWS--0016-NAT-CCI-CD_-- 10/30/2008 3:58 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS November 3, 2008 DTE, union help fund center to train line workers

BY AMY LANE cludes about 120 Detroit Edison employees time annually. CAPITOL CORRESPONDENT and about 80 contract workers. He said officials are working on a curricu- Dow said Edison needs to hire 24 line work- lum for what could be a nine-week training LANSING — A regional training center to ers annually, as well as fill other areas hit by program in Westland, potentially involving lo- supply utilities with a needed source of over- retirements, such as operators of substations cal community colleges for some classes. head line workers and other trades is taking that distribute power within smaller geo- The operation will be housed at an existing shape in Westland, sponsored in part by DTE graphic areas. DTE training and development center used for Energy Co. and one of its unions. Fellow Michigan utility Consumers Energy overhead and underground electrical distribu- CRAIN’S SEEKS DIVERSITY The center is among four or five around the Co. sees a similar need. Over the next five tion lines training. country representing an effort by the Interna- years, the company predicts it will need to The 33-acre site includes buildings with of- SUCCESS STORIES tional Brotherhood of Electrical Workers, DTE, hire about 25 line workers annually, in addi- fice, classroom and industrial machine shop Have a case study on how Florida Power & Light Co., Tucson Electric Power tion to each year hiring about 10 people to fill training space; poles and equipment; and diversity initiatives have helped Co. and Kansas City Power & Light Co. other types of technical positions. roadways and a truck storage bay that are your bottom line or helped with The utilities and union have created a na- Jackson-based Consumers is working with used for commercial driver’s license training. recruiting new leaders? tional trust fund to support the centers, said educational partners such as Delta College in Dow declined to state DTE’s monetary contri- Crain’s Detroit Business, the Vince Dow, DTE vice president of distribution Saginaw, where a new electric line apprentice bution to the center, but he said the company Detroit Regional Chamber and the operations and co-chair of the trust fund. program in its first year produced eight new will license the building to the trust fund for fu- Michigan Roundtable for Diversity Through regional sites sponsored by each hires for Consumers. ture use and development. and Inclusion are launching a new utility, “we’re going to try to create and build the The utility also hopes to attract qualified Although Consumers Energy and its union awards program, the Innovation in Diversity Awards. utility workforce throughout workers who have lost their jobs in other indus- are not originators of the center, the center the country,” he said. tries, such as autoworkers who have good math will be open to Consumers and other regional It’s argued that a diverse workforce can approach problems more Jim Spellane, media di- and technical skills or who may have held elec- utilities that want to send people through the creatively or find new opportunities. rector with the Washington, trician, welding or boiler-making positions. program or hire its trainees, Dow said. He said We’re looking for companies that D.C.-based IBEW, said the “Given our economy, and given the chal- plans call for possibly 100 people going can provide measurable results on union views the joint effort lenges that many workers are facing right through the program in 2009, and increasing those fronts. Innovations can be in as “very important, and a now, in terms of continued and long-term em- participation in future years. the form of methods, services or great step forward.” ployment, this is a great opportunity,” said The Westland center and others would oper- processes that enhance productivity “This is something that Paulette Boggs, director of staffing and diver- ate on a fee-for-service basis. or improve workforce diversity. really has the potential to sity at Consumers Energy. State Sen. Buzz Thomas, D-Detroit, has Innovations that have been not only train new workers launched within the past two years Dow Dow said line work represents “probably one drafted a bill that would call on the state to put but to upgrade skills of ex- of the best-paying, nondegree jobs in the coun- towards the energy trades center between $2.5 will be considered. Winners will be isting workers as well,” he said. try. But you do have to work a lot of hours, have million and $5 million of this year’s $15 mil- honored at an April event and featured in the March 30 edition. What’s concerning utility and union offi- to climb utility poles in the rain and the wind lion in state general funds going into the No cials is the approaching retirements of large and the snow, and work with 8,000 volts in your Worker Left Behind program. See www.crainsdetroit.com /nominate for the nomination form. numbers of overhead line and other workers, hand. The program, operated through the Michigan Questions? Contact Jennette Smith, in Michigan and elsewhere. “So it’s not a job that everybody wants to do.” Department of Labor and Economic Growth, is de- assistant managing editor/Focus, At DTE’s Detroit Edison Co., about 30 percent Line workers make approximately $60,000 signed to help displaced workers get the training [email protected], (313) 446- of line workers are heading for retirement in annually in regular hours, Dow said, but be- they need for new careers. 1622. Nominations are due the next five years, Dow said. That number in- yond that might average 1,000 hours of over- Amy Lane: (517) 371-5355, [email protected] Dec. 22.

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November 3, 2008 CRAIN’S DETROIT BUSINESS Page 21

MIXED MEDIA

Madonna and Bond business Bastone brewmaster a winner, Page 22. Dean Harlow President Ricardo Inc.

Like at work, Dean Harlow wears many hats when it comes to media, but it’s no problem. “I like to juggle a lot of differ- ent balls,” says Harlow, presi- dent of Ricardo Inc., an engineer- ing firm in Van Buren Township. Lease, anyone? Staying in the know Harlow, 45, of West Bloom- The numbers don’t make as much sense now Buyer be wise field, can’t live without CNBC in Want more auto coverage? the morning. The Wall Street BY WENDY WARREN KEEBLER Chrysler saw itself as too extended un- We’ve posted the features below on Journal, Automotive News and CRAIN NEWS SERVICE der these conditions and got out of the www.crainsdetroit.com/ Business Week also keep him in leasing business. Ford Motor Co. and Gen- very automotive buyers guide of- wheels. They’re written by the know. For local happenings, eral Motors Corp. are de-emphasizing — if the experts at AutoWeek, a fers a story about buying versus he’ll turn to Crain’s Detroit Busi- not officially discontinuing — their leas- sister publication of Crain’s leasing, with tips to help the car ness, WJR 760 AM and WWJ 950 E ing programs by manipulating subven- Detroit Business. shopper decide which is better for him or AM. tion and money factors to make leasing her. You can look this stuff up anywhere, To soak up business theory, their vehicles less appealing than pur- and the bottom line is always ... well, the chasing them. he reads Execution: The Disci- bottom line: Which option The Asian and European pline of Getting Things Done by gives you the best vehicle for makers are doing basically Larry Bossidy. “Life’s a constant the least money? You can fig- Leasing is the same. Some, such as learning process,” he says. ure it out with a calculator. “ BMW, still use leasing to A more pressing question the gift that bump-start cars at launch. Satellites to songstresses is whether leasing makes For example, Hall said he’ll Once he gets his news fix, Har- any sense for anyone any- keeps on be watching how things un- low will listen to XM Satellite Ra- more. And we’re not alone fold with the new 7-Series, Buyers guide dio from his car, house or boat. in asking. Chrysler L.L.C. re- taking. which appears in a seg- In the market for a new car? He prefers jazz, top 40, dance and cently discontinued its leas- ” ment with a very high per- Browse our picks from ing programs. And other au- Jim Hall, 2953 Analytics centage of leases. AutoWeek’s 2009 Buyers ’80s music. Guide. For an even deeper tomakers are showing signs of heading To the consumer, this While on foot, his iPod comes means that for most cars, leasing just look, go to in that direction, as favorable purchas- in handy. His most recent down- doesn’t make as much sense as it once www.autoweek.com. ing deals are pushing leasing aside. loads were did. Some experts are referring to cheap For automakers, “leasing is the gift Lady Gaga’s and easy leasing as a bubble that’s about that keeps on taking,” said analyst Jim Fuel sippers “Just to burst. And some are drawing parallels Hall, managing director of 2953 Analytics to the subprime home-mortgage crisis. With the ever-fluctuating cost Dance,” in Birmingham. First, the automakers Unqualified homebuyers were lured into of fuel, Americans are Katy Per- take a hit as they lease vehicles for less purchasing homes beyond their means. looking for ways to save ry’s “I than they could get by selling them out- money at the pump. Check Vehicle leasing, likewise, made expen- Kissed a right. Then, with guaranteed buybacks, out the 10 most fuel-efficient sive vehicles seem more affordable — Girl” and they’re hit again when residual values vehicles in the United you could get “more car” by leasing it. go down, especially when lots of cars States. Fergie’s This is no longer true. To make up for come off lease at the same time, leading “Big Girls falling residual values, monthly lease to an oversupply at auction. And a third Don’t Cry.” payments have to rise significantly. Net effect hit can come when a certain segment — But Har- There are still what Hall calls “leases such as large SUVs — is doing poorly. The Internet has made it of necessity,” such as for vehicles whose low’s fa- The usual suspects — poor economic easier to shop for cars, but costs are tax-deductible business expens- the details still count. Read Pierce Brosnan: vorite artist conditions, credit worries, high gasoline es. “That’s a whole other story,” said this story before you test the Harlow’s favorite is Madonna. prices, slow vehicle sales — are causing Hall, and business owners may still find waters. James Bond. “I proba- residual values on leased vehicles to fall bly discovered her before the significantly. See Leasing, Page 22 masses,” he says as he thinks of his favorite songs: “Holiday,” “Borderline” and “Into the BUYING VS. LEASING: HOW THE NUMBERS STACK UP Groove.” “She always reinvents herself, and it’s fresh,” he says. How much money, if any, can you save by leasing? Cadillac, like most auto manufacturers, has an online tool to help you calculate your monthly payment for “It fits what I like.” buying or leasing. On the screen 2009 Cadillac Escalade Harlow owns every James 36-month finance 36-month lease Bond movie to hit theaters. To Estimated finance amount: $61,935 $61,935 him, Pierce Brosnan plays the best Bond. That his son, 2, shares Trade-in/down payment: $1,000 $1,000 a name with the actor is only a co- Security deposit: $0 $1,825 incidence. He made the choice be- cause of his family’s United King- Total due at signing: $0 $4,636* dom descent. Plus it means Estimated monthly payment: $1,960 $1,811 “rock,” and Harlow was looking for a name with only one syllable. *Includes first month’s payment — Jennifer Walz WIECK MEDIA Source: GMAC Financial Services 20081103-NEWS--0022-NAT-CCI-CD_-- 10/30/2008 3:55 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS November 3, 2008

BUSINESS LIVES Pilsner pride: Bastone brewmaster brings awards

When Rockne Van Meter began brewing beer in 2001, he had a BREWER’S CHOICE rudimentary operation of pulleys, glass jars and stock pots whirling Recommendations from Rockne Van Meter, of Bastone in Royal through his apartment — more of Oak: a mad scientist’s laboratory than a brewery. Van Meter never imagined that Dubbel he would one day enter his brews Vision into some of A smooth, the world’s Belgian-style largest compe- beer with Table titions, beat- subtle yet ing some of the distinct Talk world’s biggest hints of brands. dried raisins Last month, and dark Van Meter, 33, cherries. entered his “Every sip Münchner should have relative flavors.” Dunkel at the nation’s largest beer Nectar des contest, the Dieux Triple Great American Has mild fruity Nathan Skid Beer Festival in flavors, which Denver, Colo., give it a light an event that gathers 2,900 beers sweetness and from 420 breweries around the creamy texture. country. It took second place in its “It’s almost a category, edging out Michelob’s dessert in and AmberBock, which placed third. of itself, rather Earlier this year, Van Meter en- than a dessert tered his pilsner in the World Beer beer.” Cup and took third place, beating the Belgian Stella Artois. No small PHOTOS BY NATHAN SKID Rockne Van Meter, brewmaster at Bastone, began brewing in his apartment in 2001 and has since won awards for his Main Street feat for a man who started with a beers. five-gallon bucket and a hand mill. Pilsner Kevin Roger, head brewer of De- opment L.L.C., a restaurant design beer a year, compared to Bastone, ety of reasons,” Van Meter said. A crisp, troit Beer Co., at 1529 Broadway St. in and development company that which only sells about 700. But, “It’s really hands-on, open and German- Detroit, started home-brewing owns several brew Carlson said, “Bas- small, so I have to pay attention to style beer around the same time as Van Meter. pubs, including Bas- tone brings home the every detail, from cleanliness to that’s “His stylized beers are exactly tone, Grizzly Peak awards.” flavor and creativity.” somewhat what they are supposed to be, but Brewing Co. in Ann Once upon a time, Learning to brew beer to suit hoppy. “This one is very his seasonals are where he gets Arbor, and North Peak Van Meter was brew- customer tastes is a humbling ex- ing beer in five-gallon drinkable, creative,” Roger said. He manages Brewing Co. in Tra- perience, Van Meter said, but it’s to push the boundaries without batches, about enough which makes verse City, said he and helped him hone his craft. compromising tradition, and to fill a soda keg. Now, “You can have the best beer in it a great his partner, architect “that’s what makes him a great he’s dealing with hun- the world, but if people don’t come football drinking beer.” Greg Lobdell, were brewer.” dreds of gallons, per in the door and drink it, who Brews to go Van Meter became the brew highly impressed flavor, per style. With cares,” he said. “I learned really when they met Van Give Van Meter a day’s notice, and master for Bastone, 419 S. Main St., six mainstay and two quickly that I’m not as good as I he’ll have your favorite beer ready Meter. Royal Oak, in October 2005, and seasonal beers on Bas- thought.” for pickup. Kegs range from $35 to has since collected more than 30 “We said this guy tone’s tap, the amount Well, Van Meter was pretty $100. awards at competitions around the knows beer inside becomes staggering good, so good that Carlson decided world. He attributes his success to and out … his prod- when you stop to to hand him the reins. Join the club his passion for the brewing uct was No. 1 by far,” think that one man “Rockne definitely has creative Around 400 people have joined process, which he enjoys more Carlson said. brews it all — and it control over the beer,” Carlson Bastone’s beer club. The $50 The award-winning lifetime membership has perks like than drinking the final product. Carlson’s first ven- all has to be perfect. said. “For really talented brewers, Münchner Dunkel. $2 Tuesdays and 25 percent off Jon Carlson, partner of Ann Ar- ture was Grizzly “This is a challeng- that is important. We let him go off retail merchandise. bor-based 2Mission Design and Devel- Peak. It sells about 1,500 barrels of ing brewery to work in for a vari- and do his own thing.”

Leasing: The numbers don’t make as much sense now ■ From Page 21 leasing advantageous. Some of them are thinking twice, example, if you lease a $40,000 car for two to three years and though. the dealer figures it will only be worth $26,000 when the lease Deciding whether to lease or buy “depends on the afford- is up, $14,000 has to be captured in your monthly payments, ability of the monthly payments, depends on the circum- despite low mileage. stances, depends upon the usage, depends upon rebates and And what about those other car nuts who might consider incentives and your personal credit,” said Van Conway, using leasing to overextend themselves into an ultraexpen- president of Conway Mackenzie & Dunleavy, a Birmingham cri- sive exotic such as a Ferrari or a superluxury Bentley? These sis-management and turnaround consulting firm. days, as in the past, Hall said, most of those are still pur- If you manage to snag interest-free financing or other incen- chased outright — for cash. tives, buy the car. But if you only want to hang on to it for a cou- As you shop for a vehicle, you can also shop for a lease, of ple of years, and you’ll drive 12,000-15,000 miles annually, lease course. Even if you want to lease a Chrysler product, for in- and stick the depreciation with the dealer, Conway said. stance, there are independent financial institutions and leas- Conway actively leases cars for business, but he also owns a ing companies that will work with you. But again, you can 2007 GMC Yukon Denali, which he uses in the winter and for get out your calculator and do the math. It would be foolish sporting events. Generally, he tacks on about 7,000 miles a year. to do a lease that’s more expensive than a purchase, right? It’s better to own a low-mileage car than to lease, Conway Right. said, because the dealer assumes you’ll be driving more than Compiled by Wendy Warren Keebler, AutoWeek. Ava Tabb Some might consider leasing to put themselves into a Ferrari that and will boost rates to make up for the depreciation. For of Crain’s Detroit Business, contributed to this report. California, but most of those are still purchased. DBpageAD.qxd 9/25/2008 4:31 PM Page 1

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Page 24 CRAIN’S DETROIT BUSINESS November 3, 2008

CRAIN'S LIST: LARGEST METRO DETROIT EMPLOYERS Ranked by full-time employees

Company Metro Metro Michigan Michigan Worldwide Worldwide Address employees employees employees employees employees employees Rank Phone; Web site Top local executive Jan. 2008 Jan. 2007 2008 2007 2008 2007 Type of business Ford Motor Co. Alan Mulally 45,000 B 55,342 NA 57,326 229,000 283,000 C Automobile manufacturer 1. 1 American Road, Dearborn 48126 president and CEO (313) 322-3000; www.ford.com General Motors Corp. G. Richard Wagoner 40,142 41,861 59,524 62,599 265,885 280,414 Automobile manufacturer 2. 300 Renaissance Center, Detroit 48265 chairman and CEO (313) 556-5000; www.gm.com Chrysler L.L.C. Robert Nardelli 29,205 32,597 29,811 34,096 71,578 79,984 D Automotive manufacturer 3. 1000 Chrysler Drive, Auburn Hills 48326 chairman and CEO (800) 334-9200; www.chryslerllc.com University of Michigan Mary Sue Coleman 25,699 24,474 26,298 25,061 26,298 25,061 Public university and health care system 4. Ann Arbor 48109 president (734) 764-1817; www.umich.edu Henry Ford Health System Nancy Schlichting 16,542 15,139 16,611 15,143 16,663 15,212 Health care system 5. 1 Ford Place, Detroit 48202 president and CEO (800) 436-7936; www.henryford.com Beaumont Hospitals Kenneth Matzick 16,432 12,638 16,432 12,638 NA NA Hospital 6. 3601 W. 13 Mile Road, Royal Oak 48073 president and CEO (248) 898-5000; www.beaumonthospitals.com Detroit Public Schools Connie Calloway 15,904 17,329 E 15,904 17,329 E 15,904 17,329 F Public school system 7. 3011 W. Grand Blvd. Fisher Building, Detroit 48202 general superintendent (313) 873-3111; www.detroitk12.org U.S. Postal Service Kelly Sigmon and Nancy 15,701 15,385 NA NA NA NA Postal service 8. 1401 W. Fort St., Detroit 48216-9998 Rettinhouse (313) 226-8607; www.usps.gov district managers U.S. government NA 15,617 15,328 24,453 24,056 1,746,736 1,724,626 Federal government 9. 477 Michigan Ave., Detroit 48226 (800) 688-9889 City of Detroit Kenneth Cockrel Jr. 13,352 13,762 13,352 13,593 13,352 13,593 City government 2 Woodward Ave. Coleman A. Young Municipal mayor 10. Center, Detroit 48226; (313) 224-3700; www.ci.detroit.mi.us

This list of metro Detroit employers encompasses companies with headquarters in Livingston, Oakland, Wayne, Macomb or Washtenaw counties. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. This is not a complete listing but the most comprehensive available. Number of full-time employees may include full-time equivalents. NA = not available. B Crain's estimate. C Figures from Dec. 31, 2006. D As of June 2007. E Figures are FTE counts from the Center for Educational Performance and Information as of December 2006. F Figures are FTE counts from the Center for Educational Performance and Information as of December 2006 and December 2005. LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH

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Page 26 CRAIN’S DETROIT BUSINESS November 3, 2008 Two sites in region vie for new plastics, chemical firm

of the year, said David Winder, me- sent economic incentive proposals K-Dow eyes Visteon Village, Motorola Building dia relations leader for Dow Chem- to the team. ical Co. For Oakland, the building at No application on behalf of K- 37101 Corporate Drive is being con- BY DANIEL DUGGAN favorite, but Van Buren hasn’t “We’re hoping Dow has come before the Michigan sidered, said Maureen Donohue AND CHAD HALCOM been ruled out. that they’ll be a Economic Development Corp., which Krauss, Oakland County deputy CRAIN’S DETROIT BUSINESS Economic development officials new addition to would need time to vet the propos- director of economic development have been excited at the idea of Farmington al and submit it to MEGA before The office space search for a new and community affairs. finding space for K-Dow Petrochemi- Hills. It’s a per- its next meeting Nov. 25., said plastics and chemical firm in the Originally built for Motorola, cals, a joint venture of Midland- fect fit.” Bridget Beckman, public informa- region has been narrowed to two the long-term lease on the building based Dow Chemical Co. (NYSE: A decision on tion officer for MEDC. That was transferred to Continental Auto- sites: the Visteon Village property DOW) and Petrochemical Industries a site will be an- process can typically take several motive Systems after the auto sup- in Van Buren Township and the Co., a subsidiary of Kuwait Petrole- nounced imme- weeks, she said. A meeting is also plier bought Motorola’s electron- Motorola Building in Farmington um Corp., based in Kuwait City. diately after a scheduled for Dec. 16. Hills. “This is great for the state and Arbenowske request for tax Winder said the decision has ics division in 2006 and moved the Though no decision has been great for the region,” said Teri Ar- incentives is ap- been “narrowed” since July, but last of its employees to Auburn made, a source close to the deal benowske, economic development proved by the Michigan Economic no final decision has been reached. Hills in August 2007. said the Farmington Hills site is a coordinator for Farmington Hills. Growth Authority, likely by the end “We have notified a few land- In Wayne County, the group has lords in a couple of communities been interested in office space that we are no longer interested in that’s part of the 880,000-square- their properties,” he said. “But we foot Visteon Village complex in aren’t ready to refine anything fur- Van Buren Township, said Turkia MARKET PLACE ther in the search.” Mullin assistant Wayne County Two Ann Arbor sites were executive. toured by K-Dow but dismissed She said the village concept of ANNOUNCEMENTS & CONSTRUCTION two weeks ago, said Neil Warling, the site and the proximity to De- SERVICES CEO of Ann Arbor-based Bluestone troit Metro Airport make it a good Realty Advisors, representing both choice for K-Dow. BUSINESS SERVICES parcels. A source close to the negotia- WE SELL BUSINESSES The group toured the vacant for- tions said the Motorola site is a fa- Confidential & Professional Service. Specialize in mer headquarters of Flint Ink Corp. vorite, but added that no site Manufacturing, Distribution & Businesses-To- Business Service Industries. and buildings in the State Street should be ruled out until a deci- Confidential Business Sale, Inc. Executive Park, Warling said. He sion is made. www.ConfidentialBusinessSale.com said the group asked for 60,000 Winder declined to name the Detroit Metro Office 313-221-9378 6$1,7$5< ‡67250 6(:(56 ‡:$7(5 0$,16 ‡*5$',1* square feet with room to expand to sites being negotiated. CRISIS MANAGEMENT Corporate financing assitance, turnaround 0$66 (;&$9$7,21 ‡ 6,7( '(9(/230(17 another 60,000. Daniel Duggan: (313) 446-0414, management and operational analysis services Oakland County and Wayne [email protected] available for newly found companies ithrough $20 63(&,$/7< &21&5(7( '(02/,7,21 million in sales. www.genesisturnaround.com County officials have had meet- Chad Halcom: (313) 446-6796, or call 248-396-1208 ings with the K-Dow group and [email protected]

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FINANCING AVAILABLE For Small to Upper Mid-sized firms, private or public, in Tech, Med’l, Health & Service Ind.- confidentiality maintained. Contact: [email protected] GOLF BRIEFLY EXTREMEGOLF4 All of your golfing needs for less Forgotten Harvest raises $3.7M tion of cross-disciplinary teams to New Golf Balls, All brands, with your custom   aid clients in addressing problems logo/graphics imprinted. Additional items include: Forgotten Harvest has closed out triggered by dramatic fluctuation new, logo over-run balls, bags, accessories & more. 6WDUN5RDG/LYRQLD0, its $3.7 million capital campaign. in financial, credit and banking Call Jeffrey Miller at (216) 538-5474 or The campaign raised money to email: [email protected] )D[   circles. Dykema Gossett P.L.L.C. fund the acquisition and opera- launched its Financial Markets (48$/23325781,7<( 03/2<(5 tions of the food rescue’s new dis- Crisis Task Force, posting infor- LEGAL SERVICES tribution site and headquarters in mation at BUSINESSES FOR SALE OFFICE FURNITURE Oak Park. financialcrisislawyers.com some WE COLLECT MONEY JUDGMENTS! Lead gifts included $1 million weeks ago. Bodman L.L.P has a cri- Now Accepting Bids For North Oakland County MUST SELL, OFFICE CLOSED from the Battle Creek-based W.K. and Commercial/Consumer Bad Debts City Golf Course Restaurant. Seats 120, Liquor Desks $99, Chairs $39, Files $49, Partitions $50, sis team of 10 lawyers. Experts in Locating Assets License. Open Year Round. Full Service, ban- Lateral Files $99, Cubicles, Office Phone Systems Kellogg Foundation and $550,000 — Robert Ankeny Contingency Fee Basis quets, catering. $60K for FFE, Turnkey. Deadline Call (248) 548-6404 or (248) 474-3375. from the Carls Foundation in De- LAW OFFICES OF L.J. FRANK, P.C. Dec 7, Submit Business Plan to: M. Heater, 1753 troit. (248) 424-9777 or [email protected] Wickham, Royal Oak, MI 48073 collectionlaw-firm.com — Sherri Begin Welch American Laser adds 19 offices EQUIPMENT & Farmington Hills-based Ameri- BUSINESS & MERCHANDISE Kelly Law teams up with inData can Laser Centers L.L.C. has signed 19 new office locations in nine INVESTMENTS Troy-based Kelly Services Inc.’s le- TELECOMMUNICATIONS states since March as part of a na- BUSINESSES FOR SALE gal staffing business unit, Kelly tional expansion. LUCENT . . . AVAYA. . . PARTNER. . . Law Registry, said it is working The Southfield office of CB Existing Cash Advance Franchise For Sale MAGIX. . . VOIP. . .LEGEND . . . with Gilbert, Ariz.-based inData Great Location & Growth OpportunityIncludes MERLIN. . .SPIRIT Systems/Parts New/refurbished. Richard Ellis brokered the deals, Receivables, Lease Sec. Dep., Office Equip., Omnicall Equipment Corp. (248) 848-9282 Corp. to provide trial consulting which add to the 220 locations State License. $49,000 OBO. Call 734-283-5626 WE HAVE USED PHONES and courtroom presentation ser- across the United States. Nortel, Lucent, phone systems. Almost any new or vices across the U.S. used phone available. Expert installation available. — Daniel Duggan Call Us For Personalized Call (248)548-6404 Through the agreement, Kelly Service: (313) 446-6068 Law Registry will expand its legal staff to include the placement of in- Livonia’s Web site honored INDUSTRIAL EQUIPMENT CLOSING TIMES: Monday 3 p.m., Data trial consultants in the court- The city of Livonia’s Web site, one week prior to publication date. room for cases from discovery to Please call us for holiday closing times. Need More Space? www.ci.livonia.mi.us, has been final resolution at trial. named as the best municipal site FAX: (313) 446-1757 — Sherri Begin Welch in the state by Mi-GMIS, a state or- E-MAIL: [email protected] ganization of IT professionals. INTERNET: About 25 employees from vari- www.crainsdetroit.com/section/classifieds Law firms address financial crisis ous city departments are able to Confidential Reply Boxes Available Four of Detroit’s top law firms manage content on the site direct- PAYMENT: All classified ads must be are joining major law firms across ly, as opposed to passing informa- prepaid. Checks, money order or tion on to one manager or an off- Crain’s credit approval accepted. the country in addressing prob- Credit cards accepted. Starting at $1,895.00 lems caused by the current eco- site management firm. ARESCO, Inc. nomic climate and financial crisis. The organization praised the See site’s ease of use, quality of content Pontiac, MI aresco.org Dickinson Wright P.L.L.C. and Crainsdetroit.com/Section/Classifieds Miller, Canfield, Paddock and Stone and frequent updating. Toll Free 1-877-227-3726 for more classified advertisements P.L.C. both announced the forma- — Tom Henderson 20081103-NEWS--0027-NAT-CCI-CD_-- 10/31/2008 11:22 AM Page 1

November 3, 2008 CRAIN’S DETROIT BUSINESS Page 27 CALENDAR Detroit. With a Newsweek magazine Meeting of the Detroit Economic Club. Automotive News Green Car Confer- THURSDAY special election correspondent to be COMING EVENTS 11:30 a.m.-1:30 p.m. Nov. 13. Christo- ence. 8 a.m.-9 p.m. Nov. 13. Carlos NOV. 6 announced. Troy Marriott, Troy. $40 Energy Efficiency Seminar for Small pher Kearney, chairman, president and Tavares, executive vice president, Nis- members, $35 junior members, $20 Businesses. 8-11 a.m. Nov. 12. DTE En- CEO, SPX Corp. Troy Marriott, Troy. san Motor Co. Ltd. Also includes the The Sandwich Generation: Caring for students with ID, $45 others. Contact: ergy. The Engineering Society of De- $40 members, $50 guests of members, presentation of the first Automotive Me While Caring for Them. 8-10:30 (313) 872-7850. troit, Southfield. Free. Contact: $75 others. Contact: (313) 963-8547. News PACE Environmental Awards. a.m. Inforum. Laurel Felsenfeld, pro- www.my.dteenergy.com/ seminars. Diamond Center at Rock Financial fessional geriatric care manager, Ag- Showplace, Novi. Full-day: $675 for ing Answers L.L.C.; Carine Hails, at- MONDAY National Philanthropy Day Dinner. 5:30- Automotive News subscribers, $795 Inforum “Must Hear!” Economic Out- torney, Hails Law P.L.L.C.; and 8:30 p.m. Nov. 13. Association of others. $195 reception and dinner NOV. 10 look 2009 Luncheon. 11:30 a.m.- 1:15 Colleen Theuerkauf, financial adviser, Fundraising Professionals Greater De- only. Contact: (313) 446-0420. Raymond James & Associates. The Maverick Marketing Monday-”How to p.m. Nov. 13. Inforum, the Detroit Free troit Chapter and Crain’s Detroit Busi- Community House, Birmingham. $45 Stand Out From the Herd.” Noon-1:30 Press, and the Troy Chamber of Com- ness. Celebration of Detroit-area phil- members, $65 others. Contact: (877) p.m. The Detroit Regional Chamber. merce. Richard DeKaser, National anthropy, honoring Harris and Phoebe 16th Annual AdCon Educational Sym- 633-3500. Terri Langhans, COE (Chief of Every- City chief economist; Richard Dugas, Mainster, William Mitchell, Joan posium. 10 a.m.-4 p.m. Nov. 15. The thing), Blah Blah Blah Inc. The De- CEO, Pulte Homes; and Carla Walker- Gehrke, Paul W. Smith, Suburban Mo- Adcraft Club of Detroit. AdCon will of- troit Zoo, Ford Education Center, Roy- Miller, president and CEO, Walker- tors and David and Jennifer Fischer, fer relevant information on advertis- FRIDAY al Oak. $20 Detroit Regional Chamber Miller Energy Services. Moderator: Derrick Coleman Foundation, Nicholas ing industry careers to college stu- NOV. 7 members, $40 nonmembers, $65 for Tom Walsh, business columnist, the Beavan, Susan Davies Goepp, and a dents and entry-level advertising Maverick Marketing season pass Detroit Free Press. The Townsend Ho- hundred area Distinguished Volun- professionals. Chrysler Technology The Election Project: Newsweek’s Ex- (available for chamber members tel, Birmingham. $50 members, $65 teers. Hyatt Regency Dearborn. Seats Center, Auburn Hills. $15 in advance, clusive Report on the 2008 Election only). Contact: Kalisha Gaines, (313) others. Table of 10, $625. (Add $10 after start at $90 per person. Contact: Toni $20 at the door. Contact: www.ad- Campaign. Noon. The Adcraft Club of 596-0392. Nov. 9.). Contact: (313) 578-3230. Holmes, (248) 478-6076. craft.org. REAL ESTATE

APARTMENT BUILDINGS COMMERCIAL PROPERTIES AUCTIONS AUCTIONS STRIP MALL FOR SALE WANTED: APARTMENTS :LOGHUQHVV/DNH(VWDWH 12,000 sq. ft, 33% Occupied. Located in real estate auction 3XEOLF5HDO(VWDWH$XFWLRQ $UXVWLFODQHOHDGVWRWKLVSULYDWH 1975 OR NEWER Fowlerville, MI. Serious inquiries only. DFUHHVWDWHZLWKSHDFHIXOZRRGVDQGD Calll (248) 921-3368 or [email protected] 0LOIRUG V%HVW.HSW6HFUHW$YDLODEOHDW$XFWLRQ Nominal Opening Bid Starts at $250,000 VTIWKRPHEXLOWLQLQ 2SHQLQJ%LG RQHRI WKHPRVWZRQGHUIXOZRRGHG • 150 or more units OAKLAND VHWWLQJV2YHUORRNV:LOGHUQHVV/DNH • Detailed 12 month operational trailing cost, TOWNSHIP WANTED: NEIGHBORHOOD 2950 Cranbrook  EHGURRP  EDWK KRPH KDV previous year end operating statement and SHOPPING CENTERS Ridge Ct XQFRPSURPLVLQJ TXDOLW\ :DONRXW current rent roll needed Grand luxury URRPDQGNLWFKHQ*UHDWURRPZLWK estate with a GRXEOH ILHOG VWRQH ILUHSODFH 0DLQ • Unit breakdown with square footage and • 100,000 sq ft or greater private, gated %HWK5RVH%HWK 5RVH IORRU 0DVWHU ZLWK JUDQLWH FHUDPLF construction makeup entrance located MHWWHGWXEV1HZSROHEDUQZLWKVSDFH • Must have Anchor Tenant in a small enclave &$,$XFWLRQHHU&$, $XFWLRQHHU • Must have price reflective of today’smarket IRUFDUVZLWKKHDWHGZRUNVKRSDQG • Price must reflect vacancies and current near Wyndgate :LOGHUQHVV/DNH&W0LOIRUG0, ORIW+RWWXE3RRODQG3DWLR,I HYHU conditions Country Club. income Royal entry with a marble foyer, dual floating 2SHQ+RXVHV6DW1RYWK 1RYQG1RRQSP WKHUHZDVD´08676((µWKLVLVLW • Cash buyer • Aggressive cap on exsisting income wrought-iron staircases and a crystal chandelier, &ORVHWRIRUHDV\DFFHVV master suite with fireplace, walk-in closet and Send information to: • Cash buyer luxurious bath. Full finished basement with 2QVLWH6DW'HFWKDWDP 5RVH$XFWLRQ*URXS//& Grand Sakwa theatre room, gym and entertainment wet bar 3UHYLHZ 5HJLVWUDWLRQDWDP  P .O. Box 252018 Send information to: with wine cellar. Separate enclosed glass room 3ULYDWH6KRZLQJV$YDLODEOH8SRQ5HTXHVW 5RVH$XFWLRQ*URXSFRP West Bloomfield, MI 48325 Grand Sakwa with in-ground pool and full bathroom. 5BR 6BA c/o Nick Donofrio P.O. Box 252018 with 8,067+/- sf, built in 1997. Open house: 1-4pm Sun Oct 26th, Nov 2nd and 2 West Bloomfield, MI 48325 hours before sale. INVESTMENT PROPERTY RETAIL SPACE c/o Nick Donofrio Sells: 3:45pm, Tue., Nov. 4th Crain’s Classifieds Gets Results LYON TOWNSHIP/BANK OWNED williamsauction.com 800.801.8003 12-unit rental townhouse project available. Great Retail Opportunity MANY PROPERTIES AVAILABLE Get a great deal on this investment opportunity. FOR ONLINE BIDDING! Contact Karen Shepherd at 248-290-5300 ext. 311 in the most sought after AUCTIONS retail destination in Metro Detroit! 5% Buyer’s Premium May Apply OFFICE BUILDING - Expand your customer base - share this spacious building with real estate auction INDUSTRIAL PROPERTY Northpointe Office Building Michigan’s Premier Rug Retailer 2525 Telegraph, Bloomfield Hills, Mi Nominal Opening Bid Starts at $100,000 FOR LEASE 43223 Twelve Mile, Novi ALMA, MI Now Leasing: 83,700 sq. ft. (12 Oaks Mall perimeter) t

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3PBE 5,000-30,000 Sq Ft available This is your opportunity to own a Where Quality Tenants Find Exceptional Value 49 unit two story motel including Space is divisible / Brokers protected Executive Garage Parking indoor swimming pool. Located Catellus Group, LLC 810-695-7700 along commercial strip in Alma Lease-Investment Opportunity Small Spaces to Entire Floor Available with easy access from Highway 127. AVAILABLE NOW Outstanding Visibility-Great Corporate Image Inspections: 11-2pm Friday Oct 31st and Nov 7th and 2 hours 4,000 to 100,000 sq. ft. Costco Contact Edgar Hagopian before sale. Also 10,000 & 25,000 sq. ft. ep Tel gra h (248) 207-8737 Sells: 10am, Fri., Nov. 14th Free Standing Bldgs w/truckwells. Square Target 1 Mile from Metro Airport Site [email protected] williamsauction.com/79 866.778.1422 REA CONSTRUCTION Lk Rd MANY PROPERTIES AVAILABLE FOR ONLINE BIDDING! (734) 946-8730 RESIDENTIAL PROPERTY Northpointe lRd Also Heavy Industrial akn 5% Buyer’s Premium May Apply Fr n i Land Available John Poponea & Associates, Inc WANTED: DEVELOPED LOTS www.reaconstruction.net 248-706-1300248-706-1300 Fax: 706-1395 • 30 lot minimum with no maximum OFFICE SPACE • Developed Lots between 50’ to 80’ wide BANK ORDERED AUCTION with utilities at the site Call Us For Personalized Detroit Mid-Town Commercial Loft/Office Space • Wayne, Oakland, Macomb, and available at the Historic Clay School (Non- TWO DAY EVENT! Service: (313) 446-6068 Residential). Space available from 400 – 8,000 sq ft. Washtenaw Counties Over 30 Foreclosed Properties Throughout starting at $500/mo. All util. incl. Free Secured • Must have price reflective of today’s (313) 831.1870. Parking. market conditions Michigan Ɣ Including Detroit, Howell, CLOSING TIMES: Monday 3 p.m., one week prior to publication date. • Cash buyer Southfield, Fenton & Genoa RETAIL SPACE Please call us for holiday closing times. Send information to: Commercial & Residential Property Spread FAX: (313) 446-1757 FREE RETAIL SPACE- Bloomfield Hills. Grand Sakwa Throughout the State High Visibility on Telegraph. Available for Christmas P.O. Box 252018 E-MAIL: [email protected] Season. Pay Utilities Only. Up To 35,000 sq. ft. West Bloomfield, MI 48325 INTERNET: Call 248-332-4444 ext 221 c/o Nick Donofrio NOV. 18, 2008, DETROIT, MI www.crainsdetroit.com/section/classifieds NOV. 19, 2008, LANSING, MI Confidential Reply Boxes Available CRAIN’S CLASSIFIEDS WATERFRONT PROPERTY PAYMENT: All classified ads must be WORK! prepaid. Checks, money order or ON ORCHARD LAKE BID ONLINE NOW Crain’s credit approval accepted. To Place Your Ad Call 4 bedroom ranch, 3 1/2 baths on Credit cards accepted. 1.4 acres premium lot. 248-335-0104 The Redfield Group (313) 446-6068 www.5081commerce.com See or LARGE 1 ACRE LAKEFRONT LOTS - 15 min from Redfield Group.com (866) 673-9270 Crainsdetroit.com/Section/Classifieds Fax (313) 446-1757 Novi/Ann Arbor on all sports lake in Brighton. ALSO, for more classified advertisements 4100 sf new Lakefront home ready for move-in 90 days. Discounts Available.Call 810-220-8060 20081103-NEWS--0028-NAT-CCI-CD_-- 10/31/2008 11:46 AM Page 1

Page 28 CRAIN’S DETROIT BUSINESS November 3, 2008 PEOPLE BUSINESS DIARY CONSTRUCTION ment manager, CONTRACTS Pureti photocatalytic surface treat- Cygnus Systems ment products in Auburn Hills. It will David Bourgeois to vice president of Franklin CIO Services L.L.C., Bloom- IN THE SPOTLIGHT Inc., Taylor, from be the only North American location corporate development, Braun Con- field Hills, and Echlin Business Con- sales executive, where the green technology is formu- struction Group, Farmington Hills, Joseph A. Cutillo has been sulting, Royal Oak, have formed an al- Work Solutions lated and manufactured. Corrosion Flu- from vice president and director of liance. The professional services named president and CEO of Inc., Livonia. id Products Corp., Farmington, has ac- companies will work together to deliv- business development, Walbridge, Detroit- quired a 25,000-square-foot facility in er expanded offerings and services to Detroit. based Inland Pittsburgh and has contracted to have MANUFACTURING clients. Marcy Colbert to project engineer, Pipe Rehabili- its Cleveland facility expanded by 8,000 Contracting Resources Inc., Paul Swart to di- Skanska USA Building Inc., South- tation. square feet. The company has also con- Brighton, from project engineer, De- rector of ac- field, and Barton Malow, Southfield, tracted for overhead cranes and shop Maria Building Co., Novi. Cutillo, 42, counting and have been named construction man- equipment at three of its facilities. had been statutory report- ager and design builder for the Winkler Gale, Farmington Hills, has launched ing, TriMas William Beaumont Hospital project in CONSULTING president of acquirecontent.com, an online content Corp., Bloomfield Hills, from director Troy. Harley Ellis Devereaux will pro- West marketplace for the publisher. The site Stephen Grady of financial reporting. vide design services for the 558,000- Chester, provides content licensing, syndica- to director of or- square-foot, multi-phased project. It tion and content creation services to ganizational de- Ohio-based broke ground in 2007 with an expected MARKETING Web site owners, media outlets, pub- velopment, The Contech October 2010 completion date. Cutillo Kathy Mehall to lishers, database providers, Internet Rehmann Group, Drainage Solu- Troy, from orga- vice president of Energy Conversion Devices Inc., startups and other businesses. tions. Previously, he spent 10 Rochester Hills, and CertainTeed nizational devel- technology, Ur- Eberspaecher, Novi, has announced it Corp., Valley Force, Pa., have an- opment and years at Ingersoll-Rand Co., and ban Science, De- is expanding its joint venture pro- nounced a joint agreement to develop training leader, before that was with General troit, from vice gram with S.M. Auto Engineering Pvt. roofing-integrated photovoltatic prod- Romeo Engine Electric Co. He replaces former president and Ltd., Pune, India. The joint venture re- ucts for the residential market, com- Plant, Ford Mo- chief informa- cently opened a 53,800-square-foot fa- President and CEO Jeffrey Stark. bining ECD’s Uni-Solar cells with Cer- Grady tor Co., Romeo. tion officer of cility in Chakan, near Pune, and also Cutillo received his Bachelor tain-Teed roofing products. The corporate ser- is planning a development center. of Science degree in Mechanical vices, GMAC, companies expect the new products to ENTERTAINMENT 3CSI, Novi, an international vendor Engineering from Northeastern Detroit. Also, be available beginning in 2010. management organization, plans on Chuck Stevens to graphics designer, Mehall to SolidThinking Inc., an Italian industrial University. Sharif Farhat expanding its Detroit area office to Suburban Sports Group, Farmington vice president of expert analytical design and styling software company, meet demand of the outsourcing and Hills, from owner and graphic de- services, from expert witness. has signed Fisher/Unitech, Troy, as a procurement needs of the automotive signer, Hatchling L.L.C., Westland. Bank, Rochester Hills, from vice value-added reseller in the Midwest. president and manager, National industry and other regional business- NONPROFITS 3.7 Designs, Ann Arbor, designed and City Bank, Rochester. es. Web site: www.3CSI.com. FINANCE Susanna Heuerman to director, launched a micro-Web site for the city EDS Credit Union, Plano, Texas, has Lutheran Adoption Services, Detroit, of Howell about the city’s planned city Joan Cummins to treasury manage- opened a branch in the Northfield HEALTH CARE from manager, Catholic Social Ser- street improvement project. The site ment officer, The Private Bank-Michi- Point Marketplace at 5381 Crooks vices of Oakland County, Pontiac. is at www.howellstreets.org. gan, Bloomfield Hills, from vice pres- Alonzo Lewis to vice president, pedi- Road, Troy. Telephone: (248) 312-4646. ident, treasury management atrics service line, Beaumont Hospi- Linh Song to director, npServ program, DeMattia Group, Plymouth, has final- Web site: www.edscu.org. services, mBank, Birmingham. Also, tals, Royal Oak, from managing di- Nonprofit Enter- ized the architecture and construction Destination Media, Detroit, an- Sean Carty to managing director and rector, health care practice, Root prise at Work Inc., of the St. Clair County Community nounced its C-Store Network televi- general counsel, from vice president Learning Inc., Chicago. Ann Arbor, from Mental Health Authority’s regional fa- sion network for convenience stores and assistant general counsel, executive direc- cility in Port Huron. Interior Partner- has expanded to additional locations LaSalle Bank Midwest NA, Troy; and tor, Ethica, Silver ship Group Inc., a design-build con- INDUSTRY GROUPS in Los Angeles and has launched in John Westerheide to associate man- Spring, Md. struction management firm in Lisa Lasser to supervisor of interna- the San Diego and Phoenix markets. aging director, from vice president Clawson, has been selected for three tional business services, Automation and senior commercial lending offi- RETAIL area construction projects: An 8,000- cer, Fidelity, Birmingham. Alley, Troy, from supervisor of cus- square-foot office, conference center MOVES tomer relations. Also, Amy Young to Paul Black to Lindsey Luttinen to CFO, WorkLife Fi- vice president, and lobby renovation of the South- Austin Financial Group L.L.C., an em- nancial, Troy, from director of ac- supervisor of customer relations, field headquarters of automotive sup- ployee benefits firm that provides from administrative assistant. CFO, ABC Ware- counting, Integer USA, Alpharetta, house Group, plier Federal Mogul Corp.; the re- benefit solutions to private and pub- Ga. Black Pontiac, from design and renovation of the main licly traded companies, has moved to Timothy Wolber to vice president and INFO/TECHNOLOGY vice president, CFO, Big Boy Restau- entrance of the Rochester Hills North 40950 Woodward Ave., Suite 360, branch manager, Community Central Eric Winkler to new business develop- rants International, Warren. American headquarters of Fanuc Ro- Bloomfield Hills. Call: (248) 594-5550 botics; and construction of a 4,000- or (888) 277-0077. Web site: square-foot Barnes & Noble book- www.austinfg.com. store at Marygrove College in Detroit. Chase moved a branch from 13767 23 SmithGroup, Detroit, is providing con- Mile Road to 13436 23 Mile Road at sulting design, lab design and lab Schoenherr in Shelby Township. The planning services for the new Emerg- Detroit-based bank says the new ing Technologies Building at Purdue building offers more space and fea- University Calumet Campus, Ham- tures. Call (586) 532-0630. mond, Ind. Stout Systems of Ann Arbor has en- NAME CHANGES tered into an agreement with Guardian The YMCA Service Academy, a Detroit Industries, an Auburn Hills manufac- charter school, to the Detroit Service turer, to provide software and Web de- Learning Academy. velopment services for Guardian’s pro- prietary software tools. NEW SERVICES Chase Plastics, Clarkston, has re- tained The Quell Group, Troy, for mar- Wheretofindcare.com L.L.C., West- keting, public relations and design land, now offers a free clinic search. services. Those in need and without health in- surance can locate nearby free clinics NLM, Detroit, has expanded its rela- that provide basic medical care. Web tionship with shipment company Ex- site: www.wheretofindcare.com. press-1, Buchanan, to manage and ful- fill critical shipments. NGK Spark Plugs (U.S.A.) Inc., Wixom, Western Creative, a Redford Township has introduced the NTK Oxygen Sen- advertising agency, has signed an sors Salvage Sensor Recovery Pro- agency of record agreement with oral gram to all professional technicians. care company Remedent Inc. of El Se- This program offers professional tech- gundo, Calif. Western will produce nicians an option for disposing of re- commercials for Remedent’s iWhite placed sensors regardless of brand. tooth whitening products and redesign packaging for its Remesense brand. NEW SOFTWARE One Point Solutions, Highland Town- SecurStar, Novi, has released ship, has been chosen by Domino’s PhoneCrypt data encryption software Pizza, Ann Arbor, to enhance its cen- for mobile phones and smart phones. tralized data warehousing system. The software uses 4,096-bit military- Bannister & Co. Inc., a marketing grade encryption to protect conversa- communications firm based in Birm- tions and data files against eavesdrop- ingham, has been retained by archi- ping and interception. tectural firm Steven C. Flum Inc., De- troit, to generate clients responding to STARTUPS its urban design agenda. Madonna University has chartered the Inland Pipe Rehabilitation, a Michi- Madonna University Lions Club at the gan-based underground rehabilita- university’s Livonia campus. tion solutions provider, has retained Identity Marketing & Public Relations, Michigan Patient Advocacy Liaison Birmingham, to provide marketing P.L.L.C. or MI-PAL, Rochester, is a pa- and public relations support. tient advocacy and legal consulting firm specializing in nursing home care, Medicaid/Medicare law, and el- EXPANSIONS der law. Jamie Verdi, a lawyer spe- CSG, Rochester Hills, is launching the cializing in healthcare law, estab- North American production of its lished the firm. Call: (248) 410-4945. 20081103-NEWS--0029-NAT-CCI-CD_-- 10/31/2008 4:57 PM Page 1

November 3, 2008 CRAIN’S DETROIT BUSINESS Page 29 Blackout has ad buyers thinking Lions may be risky bet

BY BILL SHEA age 0.9 rating. with sponsor- The announced attendance for Furniture store Gardner-White CRAIN’S DETROIT BUSINESS Winnie had a premonition that ships. the blacked-out game was 54,312, bought the remaining 5,000 tickets game would be blacked out and “The advertis- although the stadium reportedly to ensure a sellout for the Sept. 14 Despite a winless record going chose to buy pregame ads for West ers are targeting appeared far emptier — not sur- into Sunday’s game at Chicago, the home opener against the Packers, Bloomfield-based Cauley Chevrolet the local NFL prising for a team that’s lost 14 of Detroit Lions are holding steady in but no one stepped up for the Oct. 26 on CBS affiliate WWJ-Ch. 62, which broadcast for its past 15 games and hasn’t had a television ratings, but last week- game. Corporate bulk purchases to also airs NFL games. specific reasons winning season since 2000. end’s blackout has some advertis- avoid blackouts aren’t uncommon. “I took a gamble knowing the — to reach a cer- The Lions, who raised ticket ing buyers jittery. The last Lions game to be game wasn’t going to be on,” he tain audience, a prices an average of 18 percent be- “I haven’t been trying to buy (Li- blacked out was Dec. 30, 2001, said. “I bought some last-minute certain demo- fore the season, have offered a va- ons games) much for people. against the Bears at the Pontiac inventory.” Dietz graphic,” he riety of ticket packages and can They’re just not interested,” said Silverdome (a 24-0 loss). The team Andy Winnie, owner of Plymouth- The threat of a blackout can dri- said. “You have to move your adver- likely rely on a sellout for the tra- has sold out every game since mov- based eBuy Media Inc. ve advertisers’ decisions for the tising message somewhere, or you ditional Thanksgiving Day game, Because the Lions failed to sell rest of the season, said Mike Dietz, don’t buy in advance. It hurts the ad- but no new ticket incentives have ing to Ford Field the following sea- out 64,500-seat Ford Field 72 hours president and director of Dietz Trott vertisers if they have time-sensitive been announced by the team since son, a streak of 51 games. before the Oct. 26 game against the Sports & Entertainment in Farming- messages, like a product on sale the blackout. Bill Shea: (313) 446-1626, Washington Redskins, NFL rules ton Hills, which helps companies next week or a grand opening.” The team declined to comment. [email protected] mandated the game not be shown within 75 miles of the stadium. That’s not what advertisers were looking for when buying air time on NFL Sundays, meaning Fox had to offer time during anoth- er game or during different pro- gramming. WJBK Vice President and Gen- eral Manager Jeff Murri declined to comment. A 30-second local commercial during a Lions game on WJBK costs between $5,000 and $7,000, lo- cal media buys say, and there are seven to eight minutes of local commercial time available during a typical three-hour broadcast. The same 30-second spot on a Sunday afternoon during non-NFL programming costs about $300. Lions games have averaged an 18 rating this season, according to New York-based audience-track- ing service Nielsen Media Research. Each ratings point represents 19,270 households in the Detroit market, and ad rates are based on audience numbers. The leaguewide average is a 9.9 for all Sunday afternoon games. WJBK’s non-NFL programming during the blackout drew an aver-

Tenants move into The Corners center in West Bloomfield Tenants planned to move in to- day to The Corners, a $2.5 million nonprofit center in West Bloom- field. The 39,000-square-foot center was founded by Dannel Schwartz, a rabbi at Temple Shir Shalom in West Bloom- field, with funds raised from indi- vidual donors and foundations. The center at 2075 Walnut Lake Road will provide educational, wellness, social, job training and recreational services. Tenants so far include Brighton Hospital, West Bloomfield Parks and Recreation, Madonna University, Men- tal Illness Needs Discussion Sessions, Asthma and Allergy Foundation of America and The Learning Center preschool. Space also will be available for public rental. Income from rentals will go toward construction costs. Rental space includes classrooms, dance and art rooms, a gymnasi- um and a multipurpose room that can seat 250 for dinner or 300 when set up like a lecture hall. — Sherri Begin Welch 20081103-NEWS--0030-NAT-CCI-CD_-- 10/31/2008 5:55 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS November 3, 2008

Think of me as a Big Boy looks for new CEO new security guard. after sudden departure

BY NATHAN SKID of a franchise. CRAIN’S DETROIT BUSINESS McVety said that regardless of circumstance, the pressures caused by underperforming franchises can Warren-based Big Boy Restaurants International L.L.C. create tension between franchisees and franchisors. continues its search for a new CEO after the sudden “Let’s say the franchisees are happy and making departure of Tony Michaels in September. money, then the CEO is a hero,” McVety said. Bob Liggett, president of Big Boy Restaurants, said “But if things are not going well, regardless of the the parting of the ways with the economy, operating practices or any extraneous cir- I may be small but you’ve CEO was due mostly to a difference cumstances, they can put pressure on the franchisor never seen security like this. of opinion over the future of the for a change.” business. Chuck Darany, 2008 Big Boy Franchisee of the It ended more like a long-term Year, was stunned by Michaels’ departure. When you need scheduled access control for your business, Logic friendship than a boardroom coup, “It was unexpected, but it’s a privately owned com- is your best option. It is a simple but powerful cylinder and key he said. pany and the owner can do whatever he wants, “It was like a marriage that takes that lets you decide who can enter right?” Darany said. off early, but at some point the peo- your business during specific times Darany also was surprised by the stoic reaction of ple look at each other and have a franchisees when Michaels’ departure was an- and days while providing strength major difference of opinion or Michaels nounced. He cited rumors that slow store growth was and protection from physical view,” Liggett said. “It got down to a situation where the reason. attacks. And, installation is we were just on a different page.” “I was surprised by the lack of uproar from the But Michaels said, “It wasn’t close to mutual.” quick and easy, for franchise community, considering the work Tony has Michaels is credited with saving the chain from your convenience. done for Big Boy,” Darany said. “But, I also under- bankruptcy in 2000 by closing a $24.8 million deal stand that this is Liggett’s company, not ours, so he with Liggett, who breathed new life and capital into must have had a reason that we are not privy to.” Call us today for a full security assessment. the company. McVety said fair or not, a lack of store growth can Liggett changed the name from Elias Bros. Restau- focus undesirable attention on the most visible figure rants Inc. to Big Boy Restaurants International and in the company, the CEO. worked with Michaels to improve food quality. “Sometimes that pressure gets so unbearable that “We had to redesign our stores and get the food to the owner or board takes the pressure off themselves where it should be in order to build trust with new by replacing the most visible person to the fran- franchisees,” Michaels said. chisees, the CEO” he said. “The buck stops there. Neither Liggett nor Michaels was willing to dis- You’re either the hero or the goat.” close details behind the split, but Liggett said at least Crain’s reported Big Boy Restaurants generated (&("*(*"%)%%™lll#gZY[dgYadX`#Xdb part of the decision had to do with the economy. revenue of $66.5 million last year, up from $65 million Jerry McVety, president of Farmington Hills-based in 2006. It has 588 Detroit-area employees and 1,252 consulting firm McVety and Associates L.L.C., said a worldwide. troubled economy can drastically alter the direction Nathan Skid: (313) 446-1654, [email protected]

La Shish: Hard work erases stigma ■ From Page 1 but I couldn’t just move away,” Saleh said. “I had to za because of the large demand for that cuisine. move on, re-brand, re-image and re-paint. I had to Goulson said the large Middle Eastern population take everything La Shish away.” and the popularity of the food creates a strong de- But even more detrimental to Saleh’s success in mand for it. But, he said, quality is what sells. heavily Jewish West Bloomfield Township was the “Sam’s got the tenacity as well as the veracity that U.S. government’s charge that Chahine funded people pick up really quickly,” Goulson said. “When Hezbollah, an anti-Israel group classified by the U.S. he tells people he is out to accomplish something, peo- government as a terrorist organization. ple believe him.” Longtime friend Bill Braun advised Saleh that he Saleh said all of his hard work and effort he expend- was guilty only by association and encouraged reach- ed reaching out to the community paid off in the end. ing out to the Jewish population. Last year, his 5,000-square-foot, 160-seat West Braun said this was extremely important because Bloomfield Township location generated about $1.7 — good or bad — word gets around quickly in the million in revenue. tight-knit community. It prompted Saleh to open a second location in May “A restaurant doesn’t have too many shots at the in Novi. Jewish community, so we went to The Jewish News Mezza offers its guests a wide variety of Mediter- and laid it all out on the table,” Braun said. “They ranean fare, including authentic options such as baba went through it with a fine-tooth comb, which clari- ghanoush, a char-grilled eggplant dip with tahini fied the situation.” (sesame paste), lemon juice and garlic as well as such Saleh also decided he needed to hit the streets in an entrées as grilled bone-in lamb chops. Average meal attempt to create a new Mezza Mediterranean Grill out of tabs, excluding alcohol, are around $20. the wreckage of his old restaurant and regain support Saleh and his partner, Bryon Stephens, a restaura- of the community. teur and franchisee from Kentucky, have recruited a He visited synagogues, mosques and churches to group committed to investing $3 million to open four assure the religious community he was not connected more locations throughout Southeast Michigan, an- to Chahine, a gutsy move that would yield positive re- other in Toledo, and one in Henderson, Nev. sults. The six new restaurants will begin opening next “I said, ‘Hey, I’m not at all like that guy,’ ” Saleh month, each employing about 50 workers. Saleh said said. “I understand where the religious community he is expecting the new venture to collectively gener- was coming from and I respect their opinion, ab- ate revenue of $8 million to $10 million. solutely.” Goulson said Saleh has demonstrated an ability to Braun said Saleh’s efforts were worthwhile, adding persevere through hardships. that Temple Israel even held a meeting of its congre- He said Saleh came to this country to work hard gation at Mezza, showing respect for Sam and his and now owns nine Big Boy franchises with a 10th on business. the way, as well as his expanding Mezza brand. George Goulson, a former franchising consultant “I think customers are more forgiving if the food is with Bloomfield Hills-based George S. Goulson L.L.C., good,” Goulson said. “And Sam is a veteran, his food said the Southeast Michigan market is strong enough is always good.” to support Mediterranean-style restaurants like Mez- Nathan Skid: (313) 446-1654, [email protected] 20081103-NEWS--0031-NAT-CCI-CD_-- 10/31/2008 6:37 PM Page 1

November 3, 2008 CRAIN’S DETROIT BUSINESS Page 31 Blue Cross: Insurer leans on Lansing to pass reform legislation ■ From Page 3 to use parent company reserves to pur- conference committee already have ex- ber, said Paul Duguay, deputy director of trol over market rates,” said the Aug. 12 let- chase other insurance companies and en- pressed support for the Blues bills, includ- the Michigan Association of Health Plans in ter to Blue Cross CEO Daniel Loepp. ter other lines of business. ing Corriveau. George has questioned the Lansing. Bartlett said a rating downgrade could “We are facing a very serious financial need for quick legislation. “We do not favor a pool, whether it is a negatively affect the financial health of the state in Michigan if the bills are not ap- The other members — Sens. Jason Allen, direct pool or an assessment called by an- Accident Fund because it could cost the proved before the end of the year,” said An- R-Traverse City, and Hansen Clark, D-De- other name,” Duguay said. “We also ques- company more to borrow or finance debt. drew Hetzel, vice president of corporate troit; and Reps. Virgil Smith, D-Detroit, tioned whether it is prudent to allow Blue By 2011, Blue Cross’s communications. and Richard Ball, R-Bennington Township Cross to have an automatic rate increase risk-based capital ratio In October 2007, four bills intended to in Shiawassee County — have voted for that is not subject to attorney general over- could dip below 450 per- change the individual health insurance many of the provisions Blue Cross wants. sight.” cent, which could cause it market and grant the Accident Fund addi- There are two provisions in particular The Coalition for Access and Affordability in to be in danger of losing tional statutory powers were approved by that Blue Cross wants the committee to ap- Michigan, a group of for-profit insurance its membership in the the Democrat-controlled prove as part of a negotiat- companies, also opposes the cherry-pick- Blue Cross Blue Shield Asso- House. ed bill package. ing assessment, said Steve Mitchell, the ciation, Bartlett said. The However, Sen. Tom We do not favor First, the bill would im- coalition’s spokesman. RBC ratio currently is 691 George, R-Kalamazoo, “ pose a “cherry-picking” CAAM contends Blue Cross is trying to percent, down from about chairman of the Senate a pool, whether it penalty, or tax, to carriers skirt its state mandate as the insurer of 880 in 2005, he said. RBC health policy committee, that reject individuals for last resort by having carriers subsidize Kluge measures the ratio of capi- held hearings on the bills in is a direct pool or medical underwriting rea- Blue Cross’ risk. tal (assets minus liabilities) to reserves. early 2008. The result was sons. The tax would range “We think the worst thing the Legisla- Jennifer Kluge, executive vice president compromise legislation op- an assessment from 1 percent to 2 percent, ture can do is bring up complex legislation of the Michigan Business and Professional Asso- posed by Blue Cross but ap- depending on the carrier’s involving insurance companies with the ciation in Lansing, said she supports the proved in May by the Re- called by another rejection rate. tremendous amount of turmoil in the in- Blues bill because it will help stabilize publican-controlled Senate. Funds collected by the dustry and the economy,” said Mitchell. prices in both the group and individual mar- In July, the Senate and name. state Office of Financial and In- “Blue Cross is having a very poor cash kets. House versions of the Blues ” surance Regulation would be year and is seeking a government bailout,” “I am concerned at how long this is tak- bills moved to a conference Paul Duguay, used to reduce future rate in- Mitchell said. ing. Small business cannot have this uncer- committee chaired by Rep. Michigan Association creases in Blue Cross’ com- But Bartlett said Blue Cross’s need has tainty with what is happening with the Marc Corriveau, D- of Health Plans munity-rated pool, said the increased for a high-risk insurance pool or economy and rising health care costs.” Northville. committee’s draft document. A community- some other mechanism that will give Blue In a recent survey, Kluge said, 28 percent Since early October, Corriveau has been rated pool requires insurers to charge peo- Cross relief from mounting losses in the in- of members said they might drop their meeting with organizations that oppose ple the same rate regardless of age or sex. dividual market. group coverage. “Some would go into the in- the Blues bills, including groups represent- Another major proposal would allow Blue Bartlett cited a letter from A.M. Best, an dividual market with the healthy going to ing consumers, unions, senior citizens, for- Cross to file and use rate increases for com- Oldwick, N.J.-based credit rating agency, the commercial and the unhealthy going to profit health insurers and HMOs. munity-rated plans that include medical in- which said continued underwriting losses Blue Cross just to be covered,” she said. Several officials of the opposition groups flation (about 10 percent) with graduated al- could lead to a rating downgrade. Blue Cross Felicia Wasson, AARP’s associate state di- told Crain’s Detroit Business that Cor- lowable increases of 3 percent, 5 percent, 7 currently has an A rating from A.M. Best. rector of government affairs, said there is riveau showed them highlights of the pro- percent and 8 percent in the first four respec- A.M. Best said Blue Cross posted under- time for Blue Cross to get its financial house posed bills and they immediately ex- tive years. The total percentage increase over writing profits of $105 million in 2005, $1 mil- in order without legislative changes. pressed concerns. four years could total 63 percent or more. lion in 2006, but suffered underwriting loss- “This is not time to do something as major “There is going to be a discussion about If Blue Cross limits rate increases to those es of $319 million in 2007. as this when at the end of the year every- the legislation after the election,” Cor- annual ceilings, the attorney general would “The earnings declined in all lines of busi- body is horse-trading and you have 45 peo- riveau said. “These are preliminary talks. be prohibited from challenging the rates. ness; however, the losses were mainly dri- ple who vote and walk away,” Wasson said. Nothing is decided.” Corriveau has asked the groups for writ- ven by the individual products, where (Blue Jay Greene: (313) 446-0325, However, five of the six members of the ten comments by the second week of Novem- Cross) still does not exercise sufficient con- [email protected]

Suzanne and Herbert Tyner have a heart for children. As parents and grandparents, they understand the importance of family. Fortunately, for the rest of us, that concern extends to our children as well. Their generous donation to equip the new Pediatric Emergency Center at Beaumont is a gift to our entire community and to our most precious citizens. “We are truly excited to have this opportunity to provide an environ- ment that comforts children who come to the emergency department sick and scared. This new center will be an exceptional facility.” said Mrs. Tyner. Their excitement mirrors our own. Because their gift allows Beaumont to offer children the very best options in pediatric medicine. We can’t think of anything more important than that. And all of us at Beaumont are very grateful.

A National Reputation. A Local Conscience. 20081103-NEWS--0032-NAT-CCI-CD_-- 10/31/2008 6:38 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS November 3, 2008 Mexicantown: Welcome center, market struggling to survive ■ From Page 1 While he says he’s hanging on fi- Shops are leaving finish what we need to do before the and to attract more Hispanic- nancially, and tries to be positive the Mexicantown snow flies this year. We’re going to based retail businesses. about the situation, Carbonell may Mercado because work our way through this. It’s not Randal Charlton, TechTown’s opt to find a better spot when his of a lack of an overnight thing.” executive director, has said he will lease reaches the one-year mark business. The The corporation’s lawyer, blame is falling on help Mexicantown get funding next month. Ruben Acosta of Detroit firm the market from nonprofits and state and fed- “I’m thinking of trying to find a owner’s financial Williams Acosta P.L.L.C., did not re- eral agencies. new location in the area,” he said and legal turn a message seeking comment. Neighborhood businesses and Friday morning, as a couple of problems, the The financial troubles, according community leaders acknowledge bridge employees in hard hats and to Espino, stem from a complex web economy and the welcome center and Mercado’s coveralls wandered in for coffee. nearby of financing for the project, which problems are a black eye, but they In a desire to move, he’s not construction. included federal and state tax cred- alone. its, corporate and individual dona- are optimistic. At least three other businesses tion and municipal money. “I can’t say that the hope is di- have left the Mercado this year, Car- BILL SHEA/CRAIN’S DETROIT BUSINESS She declined to say anyone was minished for (the project’s) poten- bonell said, and the culprits being at fault, but has referred to a series tial,” said Edith Castillo, deputy blamed are the market owner’s fi- The agency in question is the Fern Espino, chairwoman of the of paperwork “missteps” that put director of the 350-member South- nancial and legal problems, the stag- Mexicantown Community Develop- nonprofit development corpora- the project’s finances in disarray. west Detroit Business Association. nant economy and the nearby inter- ment Corp., which remains a defen- tion’s board of directors and own- The 42,000-square-foot welcome “We have full confidence in (the change construction project that dant in a federal lawsuit over the er of a Dearborn consulting busi- center, which includes a state of board) to restore and bring the has restricted access to the area. project’s construction bills. It laid ness, has been acting as president Michigan Welcome Center, DTE En- project to fruition. We all have a Sonia Longoria’s Felicidades Gift off its five full-time employees ear- in running the corporation’s day- ergy customer service center and vested interest in seeing that pro- Shop was one of those to leave this lier this year, including President to-day operations. She declined to office space, has remained 95 per- ject completed.” year. She occupied a spot in the Mer- Maria Elena Rodriguez in April, comment on what’s happening at cent complete for more than a Longoria, the gift shop owner, cado for just one year, opening in because of declining finances. the Mercado and welcome center year. It sits across Bagley Avenue hasn’t ruled out returning to the May 2007 before leaving for a loca- In May, Wayne County Circuit or the legal matters. from the Mercado. Mercado. tion near Springwells and Vernor. Court Judge John Murphy issued a Instead, she talks optimistically Espino declined to say how “I probably would go back into The Mercado building, Longoria consent judgment against the cor- about resolving the project’s woes. much money is needed to finish the building. I know it should said, was poorly constructed. The poration for nearly $60,000 in un- “We’re still working through our the project. work, and I believe that it will management wasn’t responsive. paid office furniture bills from attorneys, and hopefully we’re get- The corporation is working to work, but it’s going to take another “There were some internal prob- Royal Oak-based Interior Systems ting toward the end,” she said. “Call form what it calls strategic al- few years,” she said. “The building lems with the agency,” she said. Contract Group. me Pollyanna, but we hope we can liances that will help it raise mon- ey and attract tenants for both was a beautiful building … I felt it buildings, she said. was something that really would The corporation last month have worked out had all the cards signed a deal with TechTown, the fallen at the right times and in the Wayne State University-affiliated in- right places.” cubator and research park for Bill Shea: (313) 446-1626, emerging high-tech companies, to [email protected] provide support services for a Reporter Nancy Kaffer con- business incubator in the Mercado tributed to this story.

Olson: Come to Bahamas ■ From Page 3

Lorenzo Garrisi, members of Clin- itself,” and he would not confirm ton Township-based Marquee In- the travel details in the letter to op- vestments L.L.C., for defaulting on a posing counsel. construction mortgage loan of $1.1 The letter states that Olson will million for a residential develop- pay at least $1,600 or so for four ment proposal in Chesterfield round-trip tickets from Detroit to Township that never materialized. Nassau via Spirit Airlines to take Olson also faces a similar law- deposition on Wednesday. Norton suit by Warren Bank in Macomb contends the order also puts Olson County, involving a total of $4.1 on the hook for hotel and other million in defaulted construction necessary travel accommodations mortgage loans from 2003 and 2005 in the Bahamas. for a Macomb Township project. J.M. Olson Corp. also has been He faces another lawsuit in Oak- facing a lawsuit since April by land County for a personal loan Sterling, Va.-based Schnabel Foun- that refinanced a prior business dation Co. in the long-idled $52 mil- loan, and his former company also lion Petoskey Pointe condomini- DetroitÕs most exciting entertainment destination is also faces at least two lawsuits filed um hotel development proposal. earlier this year in Macomb and The subcontractor in the project DetroitÕs most innovative meeting and convention destination. Emmet counties. filed a lawsuit against Olson as gen- Before the litigation, J.M. Olson eral contractor along with develop- had seen several consecutive years er Lake Street Petoskey Associates State-of-the-art technology. 67,000 square feet of of staff cuts and declining revenue — L.L.C. in Emmet County to foreclose banquet space. Fine catering and elegant accommodations. from $200 million in 2004, when it on a construction lien for the site. had 73 employees, to $181 million in But Petoskey Mayor Dale Meyer DetroitÕs best meeting and conference facility has it all. 2005, $113 million in 2006 and $98 mil- said the developer will come before lion with just 50 employees in 2007. the City Council Monday night on a Contact 866.STAY.MCC or visit motorcitycasino.com Olson left the country, an- procedural matter in that case, and nounced plans to retire and closed claims it has lined up new financing the 38-year-old general contractor that will allow the project to move firm May 9. forward. Braun Construction is sup- Steve Braun, president of J.M. posed to continue that project in Ol- Olson for its last 18 months in op- son’s stead. eration, opened Braun Construction “If all goes well with the council, Group Inc. in Farmington Hills, the developer has indicated they’d which has most of Olson’s former be ready to go forward again with- staff and is continuing some of his in the next couple of weeks,” he construction projects by subcon- said. “But we’ll see how that goes. I MotorCity Casino Hotel and MotorCity Casino Hotel design tractor agreement. tend to the view that I’ll believe If you bet more than you can afford to lose, youÕve got a are trademarks of Detroit Entertainment, L.L.C. ©2008 Andries declined to comment that when I see it.” problem. Call 1-800-270-7117 for free, conÞdential help. Detroit Entertainment, L.L.C. All rights reserved. further on Olson’s offer, saying the Chad Halcom: (313) 446-6796, Druzinski “court order speaks for [email protected] 20081103-NEWS--0033-NAT-CCI-CD_-- 10/31/2008 6:11 PM Page 1

November 3, 2008 CRAIN’S DETROIT BUSINESS Page 33 Economy: Rest of state starting to feel Detroit’s pain www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] from 8.5 percent in the second quarter and a 0.7 fected not only in auto-related areas, but also in EXECUTIVE EDITOR Cindy Goodaker, (313) 446- percentage-point rise from an 8.1 percent rate a the office-furniture industry, Erickcek said. 0460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 446- year ago. The institute earlier this year predicted that 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette Michigan’s third-quarter unemployment combined employment in west Michigan’s six Smith, (313) 446-1622 or [email protected] rate of 8.6 percent was up from 7.9 percent in metropolitan areas would drop by 0.3 percent BUSINESS LIVES EDITOR Michelle Darwish, (313) the previous quarter and was a 1.3 percentage- in 2008, but it appears possible the region’s de- 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 point increase from the state’s year-ago rate of clines could be greater. or [email protected] 7.3 percent. Erickcek said a forecast 2.1 percent drop in GRAPHICS EDITOR Nancy Clark, (313) 446-1608 or [email protected] Also of note are September 2007-to-September the region’s goods-producing employment COPY EDITOR Vic Doucette, (313) 446-0410 2008 changes in the numbers of unemployed might be close to actuality, but “one of the or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or people in the Detroit metropolitan statistical things that we might have been overly opti- [email protected] area encompassing Wayne, Oakland, Macomb, mistic on was the growth in services, and WEB GENERAL MANAGER Alan Baker, (313) 446- 0416 or [email protected] Lapeer, Livingston and St. Clair counties, and thinking that services might be growing faster WEB EDITOR Christine Lasek, (313) 446-0473, [email protected] elsewhere. The figures reflect current COURTESY OF COLLEGE OF HUMAN MEDICINE than they have been.” WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) claimants of unemployment-insurance bene- Growth in education and health services is a Over the third quarter and over the year, 446-0403, [email protected] fits, as well as people who have exhausted their bright spot shared by west Michigan and the both Michigan and the Detroit area saw de- RESEARCH ASSISTANT Joanne Scharich, (313) 446-0419 benefits and people who have entered or re-en- Detroit area. Pictured above is the Secchia clines in service-sector employment. Service EDITORIAL SUPPORT Anita Duncan, (313) tered the workforce but haven’t found jobs. Center in Grand Rapids, future home of the MSU producing-jobs dropped by 0.6 percent 446-0329 College of Human Medicine. NEWSROOM (313) 446-0329, FAX (313) 446- Over the September-to-September period, the statewide from third-quarter 2007, and they 1687 TIP LINE (313) 446-6766 Detroit area’s unemployment ranks rose 6 per- dropped by 1.2 percent in metro Detroit over cent, compared with double-digit increases in REPORTERS UNEMPLOYMENT RATES the same period. Robert Ankeny: Covers the city of Detroit, Wayne every other major Michigan labor market, the Areas of the state that historically have been Within the sector, professional and business County government, and law. (313) 446-0404 or state and the U.S., which saw its unemploy- services employment was unchanged statewide [email protected]. generally stable are reporting some significant Ryan Beene: Covers auto suppliers, steel. (313) ment roster climb by 30.8 percent. increases in their jobless rates over the year and over the year but dropped 2.5 percent in the De- 446-0315 or [email protected] Michigan’s count of unemployed people rose troit area. Educational and health services Daniel Duggan: Covers real estate and hospitality. the third quarter. (313) 446-0414 or [email protected] by 16.7 percent from September 2007. The Ann 2008 2007 were the only service categories to post gains. Jay Greene: Covers health care, insurance and the Arbor MSA, consisting of Washtenaw County, Region 3Q 2Q 3Q The Ann Arbor area went against the grain environment. (313) 446-0325 or saw its unemployed ranks rise by 26.9 percent. [email protected]. Detroit MSA 8.8% 8.5% 8.1% of declines in the state and Detroit and posted a Chad Halcom: Covers education, non-automotive In the Grand Rapids MSA, encompassing 1 percent increase in service-producing jobs manufacturing, defense contracting and Oakland Ann Arbor MSA 6.6% 5.5% 5.2% and Macomb counties. (313) 446-6796 or Barry, Ionia, Kent and Newaygo counties, the over the year, with gains in educational and [email protected]. unemployed count rose by 26.1 percent; while Grand Rapids MSA 7.6% 6.4% 6.2% Tom Henderson: Covers banking, finance, health services, state government education, technology and biotechnology. (313) 446-0337 or the Holland MSA, consisting of Ottawa County, Holland MSA 7.4% 6.4% 5.7% and other areas. [email protected]. climbed 28 percent. Nancy Kaffer: Covers small business and retail. State 8.6% 7.9% 7.3% But the Ann Arbor area also stood out for a (313) 446-0412 or [email protected]. George Erickcek, senior regional analyst 15.9 percent decline in manufacturing employ- Bill Shea: Covers media, advertising and with the W.E. Upjohn Institute for Employment Re- Source: Michigan Dept. of Labor and Economic Growth marketing, entertainment, the business of sports, ment from a year ago. and transportation. (313) 446-1626 or search in Kalamazoo, said the numbers “really “That’s fairly significant,” said DLEG’s [email protected]. tion, the latter battered by downturns in residen- state that things have changed over the last 12 Rhein. “That’s pretty severe for the area.” Nathan Skid: Multimedia reporter. Also covers the tial building and the housing market; and mixed food industry. (313) 446-1654, [email protected]. months.” By comparison, Michigan manufacturing Sherri Begin Welch: Covers nonprofits and Erickcek’s most recent quarterly look at the service-sector performance, with growth in edu- employment dropped 5.6 percent over the year, services. (313) 446-1694 or [email protected] west Michigan economy, through 2008’s second cation and health services a bright spot shared by LANSING BUREAU while Detroit-area manufacturing dropped 8.9 Amy Lane: Covers business issues at the Capitol, quarter, cites trends familiar to Southeast Michi- west Michigan and the Detroit area. percent. telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or gan: job losses in manufacturing and construc- West Michigan manufacturing is being af- Amy Lane: (517) 371-5355, [email protected] 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Jeff Anderson, Terri Dealers: Engstrom, Matthew J. Langan, Tamara Rokowski, GM-Chrysler merger could add to woes Cathy Ross, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) ■ From Page 3 (323) 370-2477 CLASSIFIED ACCOUNT EXECUTIVE Greg Evangelista, 313-446-1655 solidation programs, encouraging “Business has been consistent said Curtrise Garner, public rela- MARKETING MANAGER Irma Clark stronger dealerships to acquire AUTO DEALER FACTS for the last three months,” Golling tions manager at Chrysler. EVENTS MANAGER Nicole LaPointe smaller businesses in overlapping said. “I’m pleased with where we Ford Motor Co. dealers numbered MARKETING PROJECTS MANAGER Jennifer Dunn All statistics are from the National MARKETING ARTIST Sylvia Kolaski service areas. are, but I would like us to be back Auto Dealers Association industry 4,056 at the end of 2007, but are now SALES SUPPORT Suzanne Janik, Andrea But some question how success- analysis for 2007. to where we were, when we had fewer than 3,900, said Marisa Beckham, YahNica Crawford the leasing.” CIRCULATION Candice Yopp, Manager. ful future consolidations might be. New car dealerships in Bradley, dealer communications “I think any consolidation of the About 85 percent of the store’s PRODUCTION MANAGER Wendy Kobylarz Michigan: 759 manager for the automaker. PRODUCTION SUPERVISOR Larry Williams, business had been leasing, he said. (313) 446-0301 franchises with one dealer buying Total Michigan sales: $24 Representatives of the Detroit 3 another dealer out is on hold,” said Now it’s about 40 percent. And new SUBSCRIPTIONS (313) 446-0450, billion say the automakers serve as (888) 909-9111 Hoot McInerney, owner of Star Lin- car sales have dropped, from about Percent of total retail sales in matchmakers, pairing would-be TO FIND A DATE A STORY WAS PUBLISHED: coln Mercury in Southfield. “That’s 500 cars a month to 250 to 300. (313) 446-0367 or e-mail the Crain Information state: 20.7 percent sellers with interested buyers in Center at [email protected]. the farthest thing from their mind Golling still offers leasing, but Estimated number of Michigan’s geographic proximity. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY right now … all they’re worrying new car dealership employees: said it’s not as attractive. CRAIN COMMUNICATIONS INC. about is, ‘Are we being sold and do 36,258 “We sold 25 new cars yesterday, General Motors Corp.’s consolida- CHAIRMAN Keith E. Crain tion efforts focus on grouping PRESIDENT Rance Crain we have the money to advertise.’ ” Average number of employees and 21 the day before that,” he SECRETARY Merrilee Crain In a down economy, few dealers at Michigan dealerships: 48 said. “We’re plodding along.” brands into channels — Pontiac, TREASURER Mary Kay Crain Buick and GMC; Chevrolet; Cadil- Executive Vice President/Operations are interested in selling, Young- Average weekly earnings of And he’s cut about a dozen posi- William A. Morrow blood said, and few dealers have Michigan dealership employees: tions. lac, Hummer and Saab; and Sat- Group Vice President/Technology, $1,007 Manufacturing, Circulation the money to buy. “It’s a very painful thing,” he urn. Chrysler is working to com- Robert C. Adams “In the last five years, a lot of Total annual dealership payroll said. “We started (cutting staff) bine Chrysler, Jeep and Dodge Vice President/Production & Manufacturing in Michigan: $1.89 billion Dave Kamis metro dealers put a lot of money about three months ago. When we dealerships, and in recent years, Corporate Director/Circulation into facilities at the manufactur- Total vehicles in operation: $8.1 were selling 500 cars a month, we Ford has permitted co-branded Patrick Sheposh million G.D. Crain Jr. Founder (1885-1973) ers’ request, which only drives up had 40 salespeople.” Ford-Lincoln-Mercury franchises, Mrs. G.D. Crain Jr. Chairman (1911-1996) overhead costs,” said Clifford Michigan new vehicle Then there’s real estate. registrations for 2007: 646,485 formerly forbidden. EDITORIAL & BUSINESS OFFICES: Holmyard, a principal with the Dealerships tend to sit on sub- “It’s a smaller, healthier dealer 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Source: National Auto Dealers Association 446-6000 Troy-based CPA and consulting stantial acreage, Youngblood said, network with more profitable deal- Cable address: TWX 248-221-5122 AUTNEW DET firm The Rehmann Group, who spe- designed to house thousands of cars Subscriptions $59 one year, $98 two years. Out of Dodge brand in 2003, consolidating ers with a higher throughput,” cializes in retail automotive deal- and zoned for commercial use. state, $79 one year, $138 for two years. Outside his brands in a new building. Garner said. “Dealers are focusing U.S.A., add $48 per year to out-of-state rate for ers. “It’s the worst of all evils — With the metro area’s real estate surface mail. Golling won’t say how much he on improving health of dealership, Reprints: For inquiries call the reprints department sales are down, costs have gone market flatlining, the prospect of spent on the new building. so it’s a win-win for the health of at: (800) 494-9051, Ext. 144 , or at up.” acquiring acres of unusable land [email protected] seller and buyer.” Take Bill Golling, president- “It was a substantial invest- isn’t terribly attractive, he said. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is ment, but one we were happy we Garner, Bradley and Susan published weekly except for a double issue the owner of Bloomfield Hills’ Golling “The only way we’ll see consoli- second week in August by Crain Communications made,” he said. “Though we’ll see Garontakos, manager of dealer Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Chrysler Jeep Dodge. Golling started dation is by attrition,” Youngblood Periodicals postage paid at Detroit, MI and additional as a Chrysler-Plymouth dealer, be- what happens in the next few said. communications for GM, say the mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation came a Chrysler-Plymouth-Jeep months.” As of September, 59 percent of consolidation programs have been Department, P.O. Box 07925, Detroit, MI 48207- dealer in 1998 through the consoli- Sales have plummeted since Chrysler’s 3,372 U.S. dealers were well-received. 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2008 by Crain dation program that preceded Pro- Chrysler Financial L.L.C.’s Aug. 1 ter- enrolled in Project Genesis, the au- Nancy Kaffer: (313) 446-0412, Communications Inc. All rights reserved. mination of its leasing program. Reproduction or use of editorial content in any ject Genesis and acquired the tomaker’s consolidation program, [email protected]. manner without permission is strictly prohibited. 20081103-NEWS--0034-NAT-CCI-CD_-- 10/31/2008 6:14 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS November 3, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 25-31

for a vote. Bieda’s resolution would Kilpatrick need to pass the House and Will Quicken Senate by two-thirds majori- ties and would then go be- begins four- fore voters in an upcoming general election. He is hav- rent or buy, ing a companion bill drafted month jail that would set up the same new process in state law. Bieda said he hopes to see sentence both measures taken up af- not build? ter the House returns to ses- wame Kilpatrick was sion in November. sent to jail for four ord around Detroit Barack Obama is elected pres- In past weeks and months, K months on Tuesday has it that Dan ident, she would be succeed- speculation has mounted for his part in a sex-and- W Gilbert will lease ed by Lt. Gov. John Cherry. that Granholm might leave text scandal. JOHN F. MARTIN space downtown rather than But how would Cherry’s for an appointed post, such Wayne County Circuit build a new headquarters replacement be chosen? as one involving energy, or a Court Judge David Groner for Quicken Loans Inc. and its A resolution introduced federal judgeship. Liz Boyd, ruled that Kilpatrick, 38, RISING STARS affiliated companies. in the state Capitol would Granholm’s press secretary, not be given an opportunity Crain’s honored the 18th class of 40 Under 40 awardees, Sources say Gilbert’s real set up a new process for in- said that “this is not the first for early release, the Asso- including Lauren Scarpace, senior associate, CB Richard Ellis, estate team has been asking stalling a lieutenant gover- time people have speculated ciated Press reported. But Thursday at Big Rock Chophouse/The Reserve in Birmingham. around for 250,000 square nor. The sponsor of the res- on the governor’s future, county sheriff’s spokesman feet of space to rent. That olution, state Rep. Steve and it won’t be the last. For John Roach said in a state- The deal also could result ahead of schedule, univer- amount of contiguous space Bieda, D-Warren, said his the governor’s part, she is fo- ment shortly after the sen- in a loss of 100,000 to 200,000 sity administrators an- leaves just a few options: resolution is not being in- cused on the job she has.” tence that Groner didn’t jobs at OEMs and suppliers, nounced Tuesday. 1001 Woodward, Comerica troduced because of specu- have the standing to order according to Kimberly Ro- Ⅲ The Ann Arbor Trans- Tower, Chase Tower or lation about Granholm. Baseball spin put on deal Kilpatrick not receive time driguez, principal of Grant portation Authority will serve some of the city’s older, un- There is no provision in the off for good behavior. Pros- Thornton’s automotive as the designated authority derused buildings. state constitution for replac- The World Series and the ecutor Kym Worthy agreed. practice. for a new $30 million Ann Landlords at all three ing the lieutenant governor. Tigers’ dismal season are a Kilpatrick, 38, pleaded Arbor-Howell commuter buildings either declined to State law provides for the distant memory, but that guilty to obstruction of jus- Justice OKs merger of rail service, the agency said comment or could not be Senate to pick an acting didn’t stop the baseball tice, admitting he lied Wednesday. reached. One source said a lieutenant governor from analogies last week after about an affair with his Delta-Northwest airlines Ⅲ The North Oakland Med- the same political party as chief of staff while testify- deal is imminent. the sale of Ann Arbor-based The Justice Department ical Centers in Pontiac the governor, but Michi- ing in a civil lawsuit in Gilbert’s real estate czar, HealthMedia Inc. to New Jer- has approved a merger be- closed Tuesday after a local gan’s attorney general has 2007. He also pleaded no Matt Cullen, president and sey-based Johnson & Johnson. tween Delta Air Lines and doctors’ group failed to deter- contest to assaulting a sher- COO, Rock Enterprises, said HealthMedia, which of- Northwest Airlines Corp, the come up with the financing mined iff’s detective. the company will announce fers online wellness and AP reported. Northwest is to purchase the financially that the In other related news: by year’s end its plans for disease management pro- Michigan’s largest air car- troubled hospital. Senate Ⅲ State Attorney General Ⅲ relocating its headquarters. grams, was founded in 1998 rier, with a hub in Detroit. Trinity Health, a 44-hos- does not Mike Cox’s office will review “We are still excited about with funding from Ann Ar- However, a federal law- pital system based in Novi, have the a complaint it received coming downtown, but no fi- bor-based Avalon suit seeks to block the deal. has sold $492 million in authority Wednesday requesting that nal decisions have been Investments. Subsequent Trial is set for Nov. 5 in San fixed-rate bonds in Michi- to ap- Detroit Mayor Ken Cockrel made,” he said. “Until we an- funding came from Ken- Francisco. gan and Idaho in one of the nounce, I have nothing to point a tucky-based Chrysalis Ven- Jr. be charged with perjury. few tax-exempt hospital say about any rumors.” person to tures L.L.C. and Ann Arbor- The complaint comes af- bond sales in the country. fill the Leasing or buying is con- based Arboretum Ventures. In ter Cockrel signed a sworn JOB CUTS Ⅲ Two defense contrac- Granholm vacancy sidered a smart move given all, the company raised statement that he had no Ⅲ Compuware Corp. an- tors with ties to the Detroit of lieutenant governor. record-low prices compared about $18 million in VC unpaid campaign fees when nounced the termination area — BAE Systems Inc. and Bieda’s measure is pat- with the cost of building money. It will remain in he filed Oct. 14 to run in Wednesday of 300 of its General Dynamics Land Sys- terned after the 25th amend- new. A possible snag: Leas- Ann Arbor. next year’s special mayoral 6,100 employees, most of tems — won bids in the next ment to the U.S. constitu- ing or buying could invali- Terms of the sale weren’t election. He actually owed them from its Detroit head- phase of development for tion, which allows the date the deal Gilbert made announced, but investors $42,000. quarters. the new Joint Light Tacti- country’s newly succeeding with the city giving him were chortling. “I can dis- Detroit political consul- Ⅲ Marathon Petroleum Co. cal Vehicle, the U.S. Depart- president to pick the veep. prime land for $1 per site, close we returned 10 times tant Adolph Mongo, a Kil- may hire fewer workers ment of Defense announced Under Bieda’s House said George Jackson Jr., pres- our investment. That’s a patrick supporter, filed the than planned for the $1.9 Wednesday. Joint Resolution OOO, if Ⅲ Plymouth-based Metal- ident of the Detroit Economic home run. A Curtis complaint, the Detroit Free billion expansion of its De- Michigan’s lieutenant gov- dyne Corp. has set a deadline Growth Corp. Granderson shot to deep Press reported. troit refinery, the company ernor succeeds or fills a va- right field,” said Tim Pe- said Thursday. The project of Nov. 26 to unload $392.2 cancy in the office of gover- tersen, a managing director was expected to create as million worth of bonds or it Bill paves way for nor, the new governor at Arboretum. Blue Cross employees sent many as 1,200 construction could file for Chapter 11 would then select a new The sale even returned bankruptcy protection. Lt. governor successor home after bomb threat jobs at its peak and be up Ⅲ lieutenant governor and $1.7 million to the University and running by December Ousted Eastern Michi- Some 3,000 employees at gan University President John If Gov. Jennifer Granholm submit that nomination to of Michigan, which had li- 2010. Marathon officials at- Blue Cross Blue Shield of Fallon may not proceed with opts for a new opportunity if the state Senate and House censed the technology. tributed the delay to falling Michigan were sent home a lawsuit against the uni- prices for crude oil, The De- Friday after a bomb threat versity over his dismissal, troit News reported. was phoned in to the De- a Washtenaw County judge troit office. Last week, Blue ruled. Cross announced it was be- ON THE MOVE Circuit Judge Archie We’ll have party politics and parties covered ginning the process of lay- Brown granted a request Robert Aronson, CEO of ing off 130 employees. No Thursday to dismiss Fal- It’s going to be a busy week. I say “World’s Largest House Party” on the Jewish Federation of Met- motive for the threat was lon’s lawsuit, brought after that, of course, as if there are Saturday. ropolitan Detroit for the past indicated. the EMU Board of Regents weeks that aren’t busy. Crain’s Givers and Shakers 20 years, plans to step down One of the most pivotal elections of columnist Julie Yolles has a fired him over the handling next fall but will remain as of the 2006 death of under- our times happens on Tuesday, preview of the 25 simultaneous CEO for the next year while and we are gearing up to cover the parties to boost Habitat’s 2008- Report: 7 Chrysler plants graduate student Laura stories you won’t see elsewhere. 2009 building campaign — go to will close after merger its board of directors seeks Dickinson. An appeal is be- We’ll have results and business www.crainsdetroit.com/givers to a successor, the agency said ing considered. reaction on local races, state ballot take a look. The merger of General Mo- in a statement. proposals, university board And in case you missed it, our 40 tors Corp. and Chrysler L.L.C. OBITUARIES changes and more. Under 40 winners were honored last would result in the closure OTHER NEWS Crain’s reporter Bill Shea will offer WEB WORLD week with a party. They represent a of as many as half of Jean Edith Richert, an ad- his unique insight in a political blog Alan Baker broad spectrum of talent in a Chrysler’s factories and the Ⅲ Oakland University re- vocate for people with dis- starting Monday. That and more will Web General Manager number of businesses, and they’ve elimination of all but seven cently crossed the $100 mil- abilities who co-founded be on our home page at all succeeded under the age of 40. core models, according to a lion milestone in its five- with her husband, Joseph, www.crainsdetroit.com. For a look at the ceremony honoring them and report released Thursday year capital campaign and Special Tree Rehabilitation Beyond politics, Habitat for Humanity of some of the sights and sounds of the evening, by Southfield-based Grant is on pace to reach its final System, died Oct. 23. She Oakland County is throwing its inaugural go to www.crainsdetroit.com/multimedia. Thornton L.P. $110 million goal a year was 74. DBpageAD.qxd 10/23/2008 4:09 PM Page 1

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