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http://www.crainsdetroit.com Vol. 23, No. 44 OCTOBER 29 –NOVEMBER 4, 2007 $2 a copy; $59 a year

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Chrysler property for sale Compuware planning Chrysler L.L.C. is cleaning up its books, listing $23 million worth of industrial property in metro Detroit for sale. The five listings are vacant or soon-to-be vacant $1B Covisint IPO properties in Detroit, Ster- ling Heights and Windsor. Selling off unneeded property is one of the first Company to retain some ownership moves by a turnaround firm to pay down debt and BY TOM HENDERSON create liquidity, said Kevin CRAIN’S DETROIT BUSINESS Prokop, a former turn- THE COVISINT STORY around specialist at the Founded: By the Detroit 3 in a joint venture Compuware Corp. hopes to raise at least $1 billion in an ini- Southfield-based private-eq- in 2000. LEAH BOYD tial public offering of its Compuware Covisint subsidiary and uity firm Questor Manage- The Fort Street facility may lose mail- Purpose: Revolutionize through Web-based has hired Morgan Stanley, the New York-based investment ment Co. L.L.C. and co- sorting operations to Pontiac. procurement and online auctions the way banker, to study the IPO’s feasibility. founder with Dan Gilbert of parts were bought and sold in the auto Compuware already has conducted an a new Livonia-based pri- supply chain. Standard & Poor’s predicted internal study of the possible IPO of its suc- vate-equity group, Rock- $200 billion would flow through Covisint’s portals. cessful business unit and hopes to spin out Bridge Equity Partners L.L.C. Biggest loss the company in the next year, according to New York City-based Cer- Sold: To Compuware Corp. for $7.1 million in 2004. Company had offered too many Covisint President and COO Bob Paul. berus Capital Management services and foundered. Bob Paul was “The coolest thing coming out of this L.P. acquired Chrysler on promoted to president in 2003 and told to fix story is that in the next six to 12 months, Aug. 3. in mail move the company or kill it. He trimmed lines of we could have a high-tech IPO that does- The five properties were business, sold the rest. n’t come out of Silicon Valley,” Paul said. listed last week on the com- Revenue: $11.2 million annually when Paul Paul said Compuware would retain at mercial real estate Web sold. Had revenue of $19.6 million in the least a 50 percent share in the company. site Loopnet. The Southfield may be city’s first two quarters of Compuware’s current He said retaining some ownership would allow shareholders office of UGL Equis Corp. is fiscal year, on track to 65 percent growth to benefit from the revenue generated by the IPO while re- the broker. The company over last year. taining the possibility that Covisint’s performance in the fu- declined to comment. Employees: 224 and expected to grow by 15 percent-20 percent in the next year. For sale are: postmark See Covisint, Page 40 The Sterling Heights Vehicle Testing Center, BY CHAD HALCOM 155,000 square feet on 38 CRAIN’S DETROIT BUSINESS acres at 7150 Metro Park- way, Sterling Heights. List- Despite claims by an employee ed at $7 million, the center union, moving mail-sorting opera- is one of four operations tions from downtown Detroit to a named to close in this new regional facility in Pontiac in It’s in the wind year’s United Auto Workers 2008 wouldn’t disrupt next-day de- negotiations. livery of mail within the city, say A former full-size van U.S. Postal Service officials. DTE lays groundwork for more renewable energy sources plant at 3035 Pillette Road And it shouldn’t affect the opera- in Windsor. The 164-acre tions of large mailers, such as Blue BY AMY LANE sibility of a project that could property is listed at $13.5 Cross Blue Shield of Michigan or DTE CAPITOL CORRESPONDENT help it meet a brewing state stan- million. Energy Co., they added. dard to require utilities to obtain The former Winfield The Pontiac plant is scheduled LANSING — DTE Energy Co. is a percentage of their future pow- Foundry property south- to open early next year and is sup- laying groundwork for a 30,000- er generation from renewable west of Van Dyke and posed to consolidate some func- plus acre wind development that sources. Lynch roads in Detroit. tions of the Detroit district and the could provide power to its South- Such a standard is under dis- The 45-acre property is list- Southeast Michigan District of the east Michigan customers and cussion in the Capitol as part of a ed at $2 million. Postal Service, which also in- cost an estimated $1.2 billion to state strategy to meet long-term Vacant land on Mound cludes Oakland County. $1.5 billion. energy needs. ISTOCK PHOTO.COM/MARK EVANS Road near Outer Drive in The consolidation is expected to This is the largest wind-energy “Michigan started talking Detroit. The 7-acre proper- save the Postal Service about $4.3 project proposed in Michigan. about a renewable-portfolio stan- WIND POWER ty, currently used as a park- million a year in operating costs, Utilities, state officials and busi- dard in earnest about third quar- ing lot, is listed at $300,000. What: DTE has purchased said Nancy Rettinhouse, Detroit nesses increasingly are looking ter last year,” said Trevor Lauer, A 12,000-square-foot easements on some 30,000 acres district manager of postal opera- at renewable energy to power DTE vice president of marketing. in Michigan’s Thumb. former industrial building tions, by eliminating some em- part of Michigan’s future. “As we got involved in discus- at 14420 Plymouth Road, The goal: Turbines would likely ployee positions while maintain- DTE has purchased easements sions … we thought it would be a be built in clusters, forming four or Detroit, next to a current ing the same level of service. on some 30,000 acres in the very logical thing to start to pur- five separate wind farms in the Chrysler facility. The prop- Another casualty of the change Thumb area’s Huron, Tuscola chase easements.” region. Electricity produced would erty is listed at $190,000. would be the loss of a Detroit post- and Sanilac counties and has The 30,000 acres could accom- flow into Detroit Edison Co.’s — Daniel Duggan system, and the windmills would be mark in most mailings. erected towers that measure modate about 300 wind turbines See This Just In, Page 2 wind speed, as it studies the fea- part of the utility’s rate base. See Postal Service, Page 40 See Energy, Page 40

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Page 2 CRAIN’S DETROIT BUSINESS October 29, 2007

Mazur, CEO of Mid-America Asso- lion in the effort. for half of $1.2 billion in new THIS JUST IN ciates insurance company. — Sherri Begin business that the company has The Pontiac City Council will booked over the next several ■ From Page 1 continue meeting with develop- years. ers this week in an attempt to American Axle plans overseas “The way we did the business Stuart Frankel throws in award the contract. plants in India, Thailand with our traditional pick-up and — Daniel Duggan SUV products, our pond — our $9.4M bid for Silverdome American Axle & Manufacturing market size to fish in — was $7 Holdings Inc. said Friday it plans billion,” Rahangdale said. “The Troy-based developer Stuart Study: E-prescriptions reduce to open a manufacturing plant in Frankel Development Co. has way we are expanding our drive- India next year and is planning a line products, we are now fishing stepped forward as a bidder for medication errors plant in Thailand. the Pontiac Silverdome site. around in a $27 billion market.” The Southeast Michigan e-Pre- The company is evaluating — Brent Snavely The company plans a conven- scribing Initiative has released re- sites in India, said American tion and conference center on the search that indicates e-prescrib- Axle President and COO Yogen site, along with a mixed-use re- ing significantly reduces Rahangdale, and Thailand ranks DTE continues union talks search and industrial park and a medication errors. second in the world for produc- DTE Energy Co. and union elec- retail development. Frankel pro- The initiative is a coalition tion of pick-up trucks. poses a phased development, trical workers were continuing that includes: Blue Cross Blue The company declined to name negotiations at press time in the with 100,000 square feet devel- Shield of Michigan, Health Alliance the programs or customers it oped at a time, according to bid wake of DTE’s notice last week Plan, Henry Ford Medical Group, plans to serve with those plants. that it could terminate the work- documents released by the city of Medco Health Solutions Inc., CVS Detroit-based American Axle Pontiac. ers’ contract. Caremark Corp., General Motors (NYSE: AXL) also showcased a Workers earlier this month re- Also according to Pontiac doc- Corp., Ford Motors Co. and Chrysler group of products for all-wheel- uments, Frankel’s offer is $9.4 jected the three-year tentative L.L.C. drive passenger cars and million. electric contract agreement for Among other results, the re- crossover vehicles Friday during Company officials declined to the members of the Utility Workers search showed that nearly a a presentation at its technical Union of American Local 223, even comment on the project. third of a sample of 3.3 million e- LEAH BOYD There are now nine bidders for center in Rochester Hills. Those though the union’s negotiating prescriptions triggered a severe products are a big part of the committee had recommended Workers this month renovate one the Silverdome and the 127 acres or moderate drug interaction of the Book-Cadillac ballrooms. company’s planned revenue for ratification. around it. alert. An additional 100,000 the next several years. DTE has now exercised its op- Developer Samir Danou is the prompted medication allergy The products — which include tion to give a 45-day notice to ter- LOOK INSIDE THE BOOK only bidder in the current alerts to the prescribing physi- transmission components, minate the existing 2004 con- process who was also involved in cian. Get a sneak peek behind the torque transfer devices, transfer tract. the fruitless previous bidding The coalition said in a news re- construction of the Westin Book cases and axle joints — account — Amy Lane from 2002 to 2006. lease that, based on the success of Cadillac Detroit in a Crain’s Bright Also vying to buy the site is In- the initiative, it will continue en- Side Video. The $180 million hotel spire Vision L.L.C., Uptown Village rolling physicians in the plan in and condominium project at L.L.C., Raul Walters Properties and 2008. CORRECTIONS Michigan Avenue and Washington Boulevard is set to open next Slade Properties. Individuals bid- Since the program’s inception Ⅲ A story on Page 1 of the Oct. 22 issue should have said the Detroit re- October. Visit ding on the property are physi- in February 2005, the coalition tail center being developed by former Detroit Piston Derrick Coleman www.crainsdetroit.com/brightside cian Robert Thomas and Richard has invested more than $1 mil- is 14,000 square feet. to see the video.

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October 29, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S BorgWarner in a buying mood INDEX

holder equity of $2.2 billion, Borg- Strong sales free up cash for acquisitions Warner’s debt-to-equity ratio is just under 0.5, low for a manufacturing BY BRENT SNAVELY company operates and in each of its Warner’s manage- company. CRAIN’S DETROIT BUSINESS major product groups. ment team with Manganello and Adams told ana- BorgWarner makes transmission questions about lysts they reviewed a list of potential Auburn Hills-based BorgWarner components, clutch assemblies, acquisitions. acquisitions just two weeks ago. Inc. (NYSE: BWA), flush with cash torque transfer products and tur- “What’s going BorgWarner, they said, is talking to from several years of sales and earn- bochargers. Many of those products on is, we’ve got several companies and hoping one ings growth, is taking a serious look are experiencing an increase in glob- cash,” Chairman will agree to be acquired. at acquisition targets. al demand. and CEO Tim Man- “We are looking at acquisitions “There are a lot of possibilities out What’s more, BorgWarner holds ganello told from large to small,” Manganello said. there,” Robin Adams, BorgWarner’s strong global market position in Crain’s. “And I’d More coffee?: Starbucks executive vice president and CFO, many of those categories, especially Manganello like to think that “We have some very good, solid has opened 106 coffee said in a quarterly conference call turbochargers, where it commands we’re smart managers … and we are opportunities,” he said. “We believe shops in the metro area some parties might be interested. and plans more. | with Wall Street analysts Thursday. about 30 percent global market going to find the best use for that Page 19. During its third quarter ending share. cash.” We also remember that it takes a willing buyer and a willing seller.” Fresh food: Mike’s Fresh Sept. 30, BorgWarner’s sales grew in The company is doing so well that With total liabilities of $1.03 bil- Market has opened a every region of the world where the Wall Street analysts peppered Borg- lion as of Sept. 30 and total share- See BorgWarner, Page 41 second Detroit location. Page 19.

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

Arrow Uniform Co...... 37 Baker College ...... 14 Bartech Group Inc...... 38 MotorCity: Room to compete? Baseball Heroes of Oakland County L.P...... 3 Borders Group Inc...... 37 BorgWarner Inc...... 3 Newest casino to rely on local Central Michigan University ...... 17 Coat-It Inc...... 38 Comutech Corp...... 38 appeal to draw hotel guests Consumers Energy Co...... 40 MAKING THE Covisint L.L.C...... 40 Customer Choice Coalition ...... 40 BY DANIEL DUGGAN rollers — and who can do the best VISITORS HAPPY Davenport University...... 15 CRAIN’S DETROIT BUSINESS job of schmoozing them. Detroit Edison Co...... 40 Motor City Casino “Marketing a casino is totally Detroit Tigers ...... 3 When MotorCity Casino opens its offers the following different than marketing a hotel,” DTE Energy Co...... 1 luxury hotel next month, it not comforts: said Bill Callnin, chairman of Vir- Eastern Michigan University ...... 11 ■ only will bring 400 more rooms to ginia-based Cayuga Advisors, which Room automatically Ford Motor Co...... 11 Detroit, it will begin a new era of specializes in casino consulting. set to same temper- General Sport and ature as prior stays. hotel casino competition in Mo- “They’re not looking for a group Entertainment L.L.C...... 41 ■ town. to stay at the hotel for three or four Choice of a pillow Henry Ford Community College . 12, 17 from the “pillow library” While Detroit’s three casinos nights. They’re looking to offer Heritage Sustainable Energy L.L.C. . 40 have been going at it for years, Mo- based on texture, John Deere Wind Energy ...... 40 comps to individual players, be- materials and size. torCity and MGM Grand Detroit Casi- friend them, impress them, and get Kelly Services Inc...... 4 ■ 300-thread-count MGM Grand Detroit Casino L.L.C. . . . 3 no L.L.C. will be competing for hotel them to come back,” Callnin said. imported bed linens. Michigan Colleges Foundation . . . . 16 stays as well. In the gaming industry, gam- ■ 37-inch plasma TVs. Michigan State University...... 12 MGM will use its national pro- blers who spend thousands of dol- ■ Docking stations for Mike’s Fresh Market Inc...... 19 grams and management while Mo- lars during a visit are carefully iPods. MotorCity Casino ...... 3 torCity will rely on its local ap- cataloged in databases. Detailed NextEnergy...... 40 peal. information, such as game prefer- Oakland Schools ...... 11 Industry analysts and consul- ences, birthdays, restaurant pref- Oakland University ...... 14 tants expect battle lines to be Plastech Engineered Products Inc. . 18 drawn over the so-called high See MotorCity, Page 41 Powertrain Engineering and Manufacturing Alliance ...... 20 Schoolcraft Community College . . . 11 Sphinx Organization ...... 37 St. Andrew’s Society of Detroit . . . . 20 Starbucks Corp...... 19 Syntel Inc...... 40 The Cody Co...... 19 Pro baseball coming to Oakland County University of Detroit Mercy ...... 12 University of Michigan ...... 17 University of Michigan-Dearborn . . . 15 Vertical Lend Inc...... 39 partnership is led by Rob Hilliard, W3R Consulting ...... 38 3,944-seat stadium to house independent team owner of consulting firm Manhattan- Walsh College ...... 14 on-Rouge Communications in Water- Washtenaw Community College . . . 11 BY BILL SHEA ford Township; Tim Nick, owner of Wayne State University ...... 12 CRAIN’S DETROIT BUSINESS MORE MICHIGAN BASEBALL Heroes Bar-BQ and Brew in Water- Wolverine Power Cooperative . . . . . 40 ford Township; and the owners of the World Alliance Financial ...... 39 The Detroit Tigers plan to keep a In addition to the Detroit Tigers, the state is home to these professional Huttenlocher Group of Waterford in- WXYZ-Channel 7...... 37 weather eye on a new professional franchises: surance agency. baseball team taking up residence just Team League Class Affiliation The yet-unnamed team is expected 32 miles up I-75. Great Lakes Loons (Midland) Midwest Single-A Los Angeles Dodgers to play in the independent Frontier BANKRUPTCIES ...... 6 That’s close Lansing Lugnuts Midwest Single-A Toronto Blue Jays League, which is equivalent to Sin- BRIEFLY ...... 37 enough to draw the gle-A minor-league baseball. BUSINESS DIARY ...... 36 West Michigan Whitecaps Midwest Single-A Detroit Tigers CALENDAR ...... 33 big-league team’s The team’s acceptance is good (suburban Grand Rapids) CAPITOL BRIEFINGS ...... 6 notice, but the news because the Tigers did actively Kalamazoo Kings Frontier Rookie/Single-A Independent CLASSIFIED ADS...... 34 Tigers have no oppose a slightly larger venture to plans to oppose the equivalent EARNINGS ...... 38 bring a team to Troy three years ago. KEITH CRAIN ...... 8 venture, said Rob Traverse City Beach Bums Frontier Rookie/Single-A Independent The team sent letters to Troy City LETTERS ...... 8 Matwick, Tigers’ equivalent Council members and paid for a MARY KRAMER...... 9 vice president of phone campaign against the new OPINION ...... 8 Matwick communications. That’s good news for Baseball He- a stadium and to field a team by 2009 team. The council voted down a pro- PEOPLE ...... 36 “Certainly we’re aware it’s out roes of Oakland County L.P., which on land adjacent to the Summit Place RUMBLINGS...... 42 there,” he said. plans to spend $11.5 million to build Mall in Waterford Township. The See Baseball, Page 41 WEEK IN REVIEW ...... 42 DETROIT BUSINESS MAIN 10-29-07 A 4 CDB 10/26/2007 4:51 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 29, 2007 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Kelly Services stock slumps on news of 15% drop in net income

BY CHAD HALCOM ca and from $953,000 for restruc- tion, and some improvement in the CRAIN’S DETROIT BUSINESS turing in the United Kingdom. expense base” from restructuring, The cutbacks are expected to Camden said. “What you’ve seen is Shares of Troy-based Kelly Ser- produce savings for the company an upturn in the Americas busi- vices Inc. lingered in a slump like starting in the fourth quarter, ness (professional, technical and the temporary labor market na- though not enough to put the U.K. staffing alternatives), which tionwide last week — with a few segment back in the black. should contribute positively to op- signs that the fourth quarter looks “We lose a material amount of erating margins. Having said that, less bleak. money operating in the U.K.,” said I also carefully note that visibility Following a third-quarter earn- Kelly CFO William Gerber. “(But) is short right now as to what’s tak- ings release that showed net in- we make improvements in that ing place.” come was off 15 percent from one loss position starting in 2008.” Global revenue continued to year ago, Kelly’s stock price For the first nine months of the grow and offset a decline in de- slipped from $20.87 on Oct. 24 to year, Kelly reported net income of mand for North American com- around $20 Thursday morning, its $42.4 million, or $1.15 per share, on mercial staffing, Kelly’s largest lowest ebb since September. revenue of $4.2 billion; compared segment, which includes industry It then staged a small recovery with $39 million, or $1.08 per and light manufacturing. and closed at $20.18 Friday. share, on revenue of $4.1 billion for That sector saw a 5.7 percent The Troy-based staffing firm re- the first three quarters of 2006. The revenue decline while internation- ported net income of $15.1 million, fourth quarter is also expected to al commercial staffing revenue or 41 cents a share on revenue of produce a slight seasonal labor climbed 13.8 percent. $1.4 billion for the three months bump and a savings from restruc- In the professional-technical ending Sept. 30, compared with turing. market, Kelly revenue was up 1.6 $17.8 million, or 49 cents a share, Analysts as a group were giving percent in the Americas and on revenue of $1.3 billion for the Kelly a “neutral” or slight “under- climbed 40.4 percent overseas. year-ago quarter. perform” rating last week after the Camden predicted that the fu- Kelly (Nasdaq: KELYA) claimed earnings release, according to Ya- ture of Kelly is in building profes- flat global revenue and restructur- hoo Finance and nasdaq.com — but sional and technical segments for ing costs in the ailing United King- none gave the stock a “sell” rating, positions that require a college ed- dom and Americas commercial as a few have done in previous ucation, but Silber suggested that segments for the decline in its quarters. may be only a partial stabilizer. margins. Camden painted the earnings re- “All of staffing is a cyclical busi- But President and CEO Carl port as the product of a middling ness,” Silber said. “The commer- Camden contends the market is U.S. and global staffing economy cial segment just tends to be more not troubled or and a shrouded future forecast for cyclical than the others.” heading for a the company. Total Kelly revenue was up 2 downturn. The company reported seeing percent from one year ago for the “What we strong growth in Europe and in its quarter, and up 1.6 percent for the have typically professional, technical and support nine-month year-to-date period. seen — if there staffing segment; except for infor- Net income was down 15 percent is such a thing mation technology, where it has for the quarter but up 8.5 percent as typical (in a lagged behind some competitors. for the first nine months, com- downturn) — is “What you should be looking pared with the same period in 2006. customers for, if nothing else changes, is sta- Chad Halcom: (313) 446-6796, Camden shortening their bility in the commercial opera- [email protected] forward demand, canceling orders for temporary staffing. Those things aren’t happening,” he said. “What we’ve tried to carefully say is there are STREET TALK no signs of a downturn, nor do we see signs in the short run of any THIS WEEK’S STOCK TOTALS: 44 GAINERS, 26 LOSERS, 5 UNCHANGED tremendous uplift in demand.” CDB’S TOP PERFORMERS 10/26 10/19 PERCENT Analyst Jeff Silber of BMO Capi- CLOSE CLOSE CHANGE tal Markets in New York City 1. Compuware Corp. $9.79 $8.03 21.92 agreed the overall data in tempo- 2. Pulte Homes Inc. 15.30 13.67 11.92 rary labor points toward a “lull” 3. Meadowbrook Insurance Group 9.60 8.75 9.71 rather than the onset of a reces- 4. Amerigon Inc. 19.57 17.94 9.09 sion. Federal data indicates tempo- 5. Syntel Inc. 42.50 39.00 8.97 rary labor has been on a slow de- 6. Kaydon Corp. 55.30 51.15 8.11 cline for eight months. 7. Energy Conversion Devices Inc. 27.15 25.17 7.87 “These aren’t like the days in 8. Rockwell Medical Technologies. 6.65 6.19 7.43 2001-02, when staffing companies’ clients weren’t returning their 9. Universal Truckload Services Inc. 19.58 18.31 6.94 phone calls,” Silber said. “We’re 10. Lear Corp. 35.77 33.51 6.74 just not getting any new demand, 10/26 10/19 PERCENT CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE and new opportunities aren’t coming up. Things are muddling 1. PSB Group Inc. $12.40 $14.00 -11.42 along.” 2. Clarkston Financial Corp. 10.10 10.75 -6.05 Federal data from the Bureau of 3. Community Central Bank Corp. 7.10 7.47 -4.95 Labor Statistics indicates the na- 4. Ramco-Gershenson Properties 29.30 30.04 -2.46 tion’s total temporary labor force 5. TechTeam Global Inc. 12.70 12.99 -2.23 was 2,548,800 people in September, 6. Veri-Tek International Corp. 6.76 6.90 -2.03 a figure that has declined each 7. Somanetics Corp. 18.99 19.38 -2.01 month since hitting a peak of 8. Noble International Ltd. 19.04 19.40 -1.86 2,641,800 in January. 9. North Pointe Holdings Corp. 11.00 11.19 -1.70 The company contends it has 10. Michigan Heritage Bancorp Inc. 8.75 8.90 -1.69 seen improvement quarter by Source: Bloomberg News. From a list of publicly owned companies with headquarters quarter, and that the third quarter in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading took a hit from $1.5 million in re- at less than $5 are not included. structuring costs for North Ameri- DBpageAD.qxd 10/23/2007 4:21 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS October 29, 2007 Lawmakers mull delaying service tax

LANSING — There’s yet some $430 million in bud- service tax is repealed. However, lawmakers have limit- That’s an important signal to the another twist in the debate get cuts that are the final The percentage surcharge ed time to repeal the tax and enact a Legislature that we’re serious over Michigan’s new ser- part of a budget deal would be added to a company’s tax revenue replacement before Dec. 1. about this effort,” said Matt Resch, vice tax: Moving its start reached earlier this liability. The Michigan Manufactur- Hadden said his group is “will- a spokesman for the Ax the Tax Coali- date from Dec. 1 to Jan. 1 as month. ers Association is floating the MBT ing to live with pushing the date tion and vice president for media re- discussions continue over Business uproar over idea as it tries to bring other busi- off on implementation to Jan. 1, as lations at Sterling Corp., the Lansing its repeal. the new 6 percent service ness groups on board with the po- long as we don’t get caught up in firm hired to handle public rela- Some lawmakers are tax, enacted Oct. 1 as part tential revenue fix. politics. The clock is running ei- tions and coalition management. looking at the idea, which of the budget deal, has Chuck Hadden, vice president of ther way, and we need to get some- The still-growing coalition of would buy more time to pushed service-tax repeal government affairs, said that thing done.” trade associations, chambers of hash out a repeal of the tax onto legislative agendas. “every business group we’ve talked On a parallel track, work is un- commerce and employers hopes in and clear it off lawmakers’ CAPITOL BRIEFINGS As Crain’s reported last to does not like the service tax. derway to craft petition language the near-term to persuade lawmak- calendars this week as they Amy Lane week, some business Then it breaks down to: Is the ser- as service-tax opponents move ers to repeal the tax before it try to finalize Michigan’s groups are exploring a vice tax a better alternative than rapidly to launch a petition-sign- starts. If the Legislature doesn’t budget. surcharge on the new Michigan this surcharge could be? And it ing drive toward repeal. act, the coalition plans to place the Lawmakers have until days’ end Business Tax, or MBT, as a way to kind of depends how you fall in the “We’re hoping that we can start repeal on the ballot. on Oct. 31 to complete work on replace service-tax revenue if the MBT, more than anything else.” gathering signatures before Dec. 1. Law firm Dykema Gossett P.L.L.C. is working with the coalition on draft language for the repeal peti- tions, and meetings with legislative leaders continue, Resch said. He said the coalition is also planning events at the Capitol and in lawmakers’ districts to build grassroots support. One thing the coalition isn’t likely to do, is to advocate a specific source of revenue replacement. “It’s been widely agreed that a group as large as this, it will be Think big. very difficult to come to a consen- sus on revenue replacement,” Resch said. Instead, he said the coalition’s Choose Delta Dental. message will simply be: Repeal. ‘Talent caucus’ formed Biggest networks of participating dentists nationwide State lawmakers have formed a bipartisan internal group whose goal is to promote discussion of the Big savings importance of recruiting and retaining knowledge-based workers in Michigan. The legislative “talent caucus” Big smiles last week had as its first speaker Lou Glazer, president of Ann Ar- bor think tank Michigan Future Inc. Nobody protects you like Delta Dental. “The goal of the talent caucus is to develop and recommend strate- gies that will help identify, attract, www.deltadentalmi.com develop and retain a new class of workers to expedite Michigan’s recovery,” Sen. Gilda Jacobs, D- Huntington Woods, said in a news release. Other caucus co-chairs include Sen. Jason Allen, R-Traverse City, and Reps. Steve Tobocman, D-De- troit, Ed Clemente, D-Lincoln Park, and Bill Huizenga, R-Zeeland. Comings & goings ■ Dominick Pallone, former chief of staff for Rep. Marty Knollen- berg, R-Troy, has joined lobbying firm Midwest Strategy Group as a lobbyist. Amy Lane: (517) 371-5355, alane@ crain.com

BANKRUPTCIES The following businesses filed for Chapter 11 protection in U.S. Bank- ruptcy Court in Detroit Oct. 19-25. Un- der Chapter 11, a company files for re- organization. Daniel W. Williams & Sons Inc., 21721 Alger St., St. Clair Shores, voluntary Chapter 11. Assets and liabilities not available. Shepard Marine Construction Co. Inc., 30505 Beaconsfield St., Roseville, voluntary Chapter 11. Assets and liabilities not available. — Compiled by Jonathan Eppley DBpageAD.qxd 10/12/2007 1:16 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS October 29, 2007 OPINION Fix tuition funding ichigan’s cash crunch has put a dent in plans to increase the percentage of adult residents with two- M and four-year college degrees. Every dollar counts, but the idea floated last week by Gov. Granholm to kill tuition assistance for students attending private colleges in Michigan to help balance the budget midyear will certainly hurt her oft-stated goal of increasing the number of college grads. Regardless of whether the aid is cut, Michigan should side- step the whole debate over public vs. private and look at other states that have experimented with allowing state higher-education funding to follow the student to any of the accredited colleges and universities regardless of their charter. Supporters of that model insist it makes colleges more effi- cient because they have to compete more directly for students. This may be one of the more radical ideas in education funding, but it’s worth considering. Mail service must stay reliable Neither rain nor sleet may slow the U.S. Postal Service, but will moving the mail-sorting functions from the main postal facility in downtown Detroit to Pontiac kill the ability for next- day delivery of mail within the city? The postal service says no, but the union representing LETTERS workers is predicting problems. A newer, more modern sorting facility may actually be a big improvement, but it means we’ll probably lose “Detroit” as Beer tax will hurt state economy a postmark, even for mail dropped at the downtown facility. Editor: For one, higher taxes could put a The changes won’t take effect until next year, but mail de- Crain’s Detroit Business Keith Crain wrote in an Aug. 27 chill on beer sales. Economics tells livery is a critical function, and the postal service should welcomes letters to the editor. column (“Now we have become the All letters will be considered for us that when sales slow, profits make sure it’s communicating to key business groups about ‘beer’ state”) that a beer tax in- publication, provided they are dry up, which translates as less the consolidation and changes. crease wouldn’t impact him. That signed and do not defame growth and fewer jobs. Breweries may be true. Yet raising Michi- individuals or organizations. in Detroit and across Michigan gan’s already high beer tax will Letters may be edited for length will be hit hard. So will local fami- Tigers won’t fight new ball club hurt many businesses and harm and clarity. ly-owned distributors and retail- our state’s economy at a time Write: Editor, Crain’s Detroit ers across Metro Detroit and What a difference three years and a couple of winning sea- when Michigan can least afford it. Business, 1155 Gratiot Ave., throughout our state. Beer is a key component of Detroit, MI 48207-2997. The beer industry not only can’t sons makes. Michigan’s economy. Michigan is The Detroit Tigers have no official plans to try and squash E-mail: [email protected] expand, it has to shrink — and that home to more than 70 family- means layoffs. A struggling beer plans for a Frontier League baseball team in Waterford Town- owned distributors and nearly 90 industry can also hurt related in- microbreweries. Beer generates dustry is thriving in Michigan. ship. dustries, including those in small more than 34,000 jobs directly and The industry holds tremendous Three years ago, when sports entrepreneur Andy Appleby business, agriculture, construc- pumps nearly $2.2 billion into the potential to grow even more. tion, travel and manufacturing. tried to launch a minor-league team in Troy, the Tigers organi- state economy. Beer also pours But increasing the already high In 1990, when Congress last zation helped to quietly fund a lobbying effort that successful- more than $200 million in annual beer tax will hurt middle-class slammed consumers with a dou- ly killed the plan. taxes directly into the state’s cof- consumers, who already pay 41 percent in taxes for each glass of bling of the federal tax on beer, That was when the Tigers weren’t fielding a competitive fers, money that helps pay for schools, roads and public safety. beer — more than any other state about 60,000 people lost their jobs team. Remember those days? From the wide variety of im- in the Great Lakes region. Michi- nationwide, according to econom- Today, as Bill Shea reports on Page 3, the Tigers say they ports and brand-name beers deliv- gan’s beer tax is more than 300 per- ic firm DRI/McGraw-Hill. have no plans to oppose the team. Major League and Frontier ered by Michigan’s distributors to cent higher than Wisconsin’s. Michigan shouldn’t make the same mistake again. League teams co-exist in other cities, such as Chicago, Cincin- the custom ales and lagers pro- A higher beer tax would also duced and brewed in Michigan’s have a ripple effect across our A higher beer tax will send con- nati, St. Louis and Pittsburgh. many microbreweries, the beer in- economy. See Letters , Page 9

KEITH CRAIN: It’s time for us all to give until it hurts It’s that time of year when we all things are in Southeast profits. This is the one rely on this one campaign to sup- huge task in our community. As should be thankful. Michigan for a greater campaign every year port all their charitable activities. governments cut back, it’s going to I’m not talking about Thanks- number of folks than that all these organiza- In our company, we ask our em- be up to us, the private sector, to giving or Christmas. They will be ever. tions rely on to fund ployees just once a year to help take up the slack. here before we know it. Like our govern- their good works for the support a charitable cause. That’s And this year, because we’re all It’s the time of year for the annu- ments, we have much to next year. the United Way Campaign. lucky to have a job and be working al United Way Annual Campaign. do with a shrinking It’s tough out there. There was a time not too long (I hope), maybe you can raise your I’ll be up front and let you know base of givers. There have been too ago when we would be inundated individual contribution a bit this that I’m fortunate to be on the That’s why it’s impor- many layoffs and too with literally hundreds of charita- year. board of the United Way, so I may tant for the rest of us to many folks who have ble organization drives. United It’s that important. It’s for our have a little more insight into the give until it hurts. I left our state. And with Way was able to combine these community and there is no greater goings on and just how important don’t remember who all the heartbreak, there into one very important campaign. need today. this campaign is every year, but used that phrase, but is an even greater need Where I grew up, it was called Do what you can. But remem- more importantly this year. it’s a good one and very to give. the Community Chest. But it does- ber, give until it hurts. You would have to be living in a apt right now. United Way supports so many n’t matter what it was called then. You’ll be helping a lot of people cave not to understand how tough United Way helps so many non- worthwhile organizations that Today, the United Way performs a in our community. DETROIT BUSINESS MAIN 10-29-07 A 37 CDB 10/26/2007 4:37 PM Page 1

October 29, 2007 CRAIN’S DETROIT BUSINESS Page 37 BRIEFLY Sphinx’s orchestra to tour Monroe; Anthony Stamas, R-Mid- state in the House of Representa- Borders to open first and broadcast company and into a land; and Gretchen Whitmer, D- tives in Washington and bound- digital and cable company, said The Detroit-based Sphinx Organi- Lansing. aries of state legislative districts, U.S. Paperchase store Grace Gilchrist, vice president zation’s chamber orchestra plans “We want input from the indus- and helps determine the distribu- and general to launch its first major U.S. tour Borders Group Inc. plans to open try on such possible needs as tax tion of more than $200 billion in fed- its first stand-alone Paperchase manager of next fall. Channel 7, the incentives, funding, work force de- eral funds to states and localities. shop in the United States on Oct. 24 The orchestra is composed of top velopment, incubators and facili- — Robert Ankeny region’s South- in Boston. alumni of the annual Sphinx Com- ties, and what business and acade- field-based ABC Paperchase is a London-based petition for young black and Lati- mia deem necessary in order for affiliate. Scripps stationery retailer that has more no string players held in metro De- them to grow a successful life-sci- Arrow Uniform adding jobs has owned than 100 stores in the United King- troit. ences cluster,” Richardville said Taylor-based Arrow Uniform Co. WXYZ since dom. The new, 1,525-square-foot The tour will build on the suc- in a news release. will move all Cleveland-area uni- 1986. Paperchase shop will offer prod- cess and recognition Sphinx has — Tom Henderson form laundering operations to its Gilchrist said ucts such as greeting cards, gifts, garnered not only locally but also facility in Taylor by January — a the move is a re- gift wrap and diaries. Gilchrist through its performances at consolidation that will add a local action to Wall Carnegie Hall, said Founder and Detroit getting Census center eight-hour shift and increase the Ann Arbor-based Borders Street’s dissatisfaction with the President Aaron Dworkin in a Stroh River Place, at 300 River facility’s garment volume by 50 (NYSE: BGP) acquired Paperchase newspaper industry, which was af- news release. Place Drive, will house the 2010 Re- percent. Products Ltd. in 2004. The company fecting the growing cable and In- — Sherri Begin gional Census Center, announced Arrow President John Caputo since has placed Paperchase sec- ternet properties. the Detroit Regional Office of the made the consolidation announce- tions inside more than 300 Borders “It’s more of a response to the Biotech caucus formed U.S. Census Bureau. ment this week. The move is ex- superstores nationwide. punishment that publishing has Regional headquarters for the pected to add 30 local jobs; some Borders plans to open up to experienced on Wall Street, and eight stand-alone Paperchase A biotech legislative caucus has 2010 Census operation for the will be transfers from Cleveland we’ve got this astonishing success- stores in the United States by the been formed as an outgrowth of states of Michigan, Ohio and West and others will likely be new local ful electronic division,” she said, end of its fiscal 2008 (Feb. 2, 2009). the third annual MichBio Expo Virginia will open in the 31,000- hires. adding that no sale of either new The company has not released the that took place in Lansing Oct. 16 square-foot site in January 2008 The 246,000-square-foot Taylor company is expected. and 17. locations for those stores. and will employ about 160 people facility houses one of the largest Scripps intends to divide its The purpose is to bring the life- — Sheena Harrison during peak operations. industrial laundries in the world, newspaper and broadcast hold- sciences community closer to the After Census Day, April 1, 2010, the company says. It processes ings from its digital and cable legislative process, said Stephen the three-state operations of the 50,000 garments a week, and will Scripps split won’t affect WXYZ holdings by the second quarter Rapundalo, executive director of Detroit Region will employ 35,000 handle 75,000 garments weekly af- next year. One group will have its the statewide trade association to 40,000 temporary workers. The ter consolidation. Cincinnati, Ohio-based E.W. MichBio. Census Bureau will mail more Arrow Uniform has nearly 700 Scripps Co.’s announcement the 19 newspapers, 10 TV stations, Members include state Reps. than 130 million short-form ques- employees in uniform rental, sales week of Oct. 15 that it plans to split Scripps Howard News Service and William Huizenga, R-Zeeland; tionnaires to households in the and laundry and other services. itself into two public companies is- the United Media newspaper syndi- David Hildebrand, R-Lowell; United States, its trust territories The company will maintain other n’t expected to affect operations at cate under the current company Robert Jones, D-Kalamazoo; and and Puerto Rico. nonlaundry operations in Cleve- its metro Detroit TV station, WXYZ- name. That unit will have 7,100 Rebekah Warren, D-Ann Arbor; The Census count is used to de- land and plans to open a new ser- Channel 7. employees and estimated annual and state Sens. Tupac Hunter, D- termine the number of congres- vice center in that area. It will be “business as usual” revenue of $1.1 billion. Detroit; Randy Richardville, R- sional seats apportioned to each — Chad Halcom when Scripps splits into a print — Bill Shea DETROIT BUSINESS MAIN 10-29-07 A 38 CDB 10/26/2007 4:53 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS October 29, 2007 Minority-owned HHEALTHEALTH CARE CARE BRIEFS BRIEFS businesses win WSU names interim ob-gyn chair Prostate Cancer Foundation has issued a challenge to the University of MMBDC awards The Wayne State University School Michigan Center for Translational of Medicine has named Theodore Pathology to raise $1 million to sup- Jones interim chairman of the De- Livonia-based staffing firm port prostate cancer research. partment of Obstetrics and Gyne- If the UM center is successful, The Bartech Group Inc. received cology. the 2007 Minority Business the foundation will match the gift Jones replaces John Malone Jr., dollar for dollar. Enterprise Supplier of the Year who returned to the faculty for the Award from the Detroit-based The initial $2 million goal is the department earlier this month, ac- first phase of a $16 million cam- Michigan Minority Business Devel- cording to an internal WSU memo. opment Council paign that will fund development at its 24th-annu- The medical school would not al awards dinner Oct. 16. of a gene therapy. The therapy will comment on reports that Malone Bartech won for companies seek out cells that harbor prostate was removed as department chair- with annual sales greater than cancer. man for conflicts with Medical $50 million. The molecular structure of the School Dean Robert Mentzer Jr., Bartech Group is a 100 per- fused genes found in the majority and that six physicians resigned cent black-owned business, of prostate cancer tissue that’s from the department Monday. with most shares owned by the been analyzed by Arul Chin- Malone remains The Detroit Med- immediate and extended family naiyan, director of the UM Center ical Center’s chief of obstetrics and of Chairman and President Jon for Translational Pathology, gynecology. Barfield. points to gene fusion as the poten- — Sherri Begin Other winners were: tial cause of prostate cancer. The Ⅲ Coat-It Inc., a black-owned work by Chinnaiyan and other re- sealant and adhesives company UM Regents OK $32.7M searchers will build on this re- based in Detroit, in the $10 mil- search. lion-$50 million revenue catego- for health system projects Chinnaiyan was among the ry. The University of Michigan Board area’s top researchers profiled by Ⅲ W3R Consulting, a black- of Regents Thursday approved Crain’s in a May university re- owned IT consulting company $32.7 million in major medical search innovations report. based in Southfield, in the $1 imaging projects for the universi- — Sherri Begin million-$10 million revenue cat- ty’s health system. egory. The projects will be funded from Ⅲ Computech Corp., a Bing- University of Michigan Hospitals and House OKs limits on health ham Farms-based consulting Health Center reserves and are sub- insurance renewal hikes and software company, won ject to approval from the state’s this year’s Diamond Award for Certificate of Need committee, UM The state House on Wednesday exemplifying the spirit of mi- said in a release. approved a package of bills that in- nority entrepreneurs conduct- They include three new suites clude measures to limit the ing business with other minori- for minimally invasive brain surg- amount that health insurers can ty enterprises. Computech is an eries, two new CT scanners, one raise individual rates at renewal Asian-Indian-owned business. new MRI scanner and a breast- and allow the Accident Fund of Criteria for the awards in- imaging and biopsy area. Michigan entry into lines in addi- clude company growth and de- The regents also approved the tion to workers’ compensation. velopment, performance and design for new center to replace Blue Cross Blue Shield of Michigan community involvement. the Towsley Center for Children and hailed the passage of House Bills — Natasha Robinson combine the UM Children’s Center 5282-5285, which in part address for Working Families and Pound the growing individual health cov- House children’s center into a sin- erage market. gle site. In April, the board ap- The bills would alter rate filing proved an $8 million budget for the requirements for Blue Cross and 22,500-square-foot center which enact new rate scrutiny and limits was designed by Integrated Design on insurers. The legislation also Solutions L.L.C. in Troy. would require insurers to pay into — Sherri Begin a Blue Cross-administered pool that would offer coverage to people who have been turned down for in- UM offered $1M challenge grant surance. The Santa Monica, Calif.-based — Amy Lane

EARNINGS Compuware Corp. Nasdaq: CPWR Pulte Homes NYSE: PHM 2nd Quarter Sept. 30 2007 2006 3rd Quarter Sept. 30 2007 2006 Revenue ...... $301,971,000 $288,507,000 Revenue ...... $2,471,798,000 $3,563,959,000 Net income ...... $37,416,000 $24,809,000 Net income ...... ($787,871,000) $190,219,000 Earnings per share ...... $.13 $.07 Earnings per share ...... ($3.12) $.74 6 months 9 months Revenue ...... $581,360,000 $584,825,000 Revenue ...... $6,364,477,000 $9,885,502,000 Net income ...... $37,605,000 $54.130,000 Net income ...... ($1,381,094,000) $695,883,000 Earnings per share ...... $.13 $.15 Earnings per share ...... ($5.48) $2.69 Johnson Controls Inc. NYSE: JCI Syntel Inc. Nasdaq: SYNT 4th Quarter Sept 30 2007 2006 3rd Quarter Sept. 30 2007 2006 Revenue ...... $9,011,000,000 $8,150,000,000 Revenue ...... $87,885,000 $69,217,000 Net income ...... $466,000,000 $360,000,000 Earnings per share ...... $.77 $.61 Net income ...... $18,313,000 $14,531,000 12 months Earnings per share ...... $.44 $.35 9 months Revenue ...... $34,624,000,000 $32,235,000,000 Revenue ...... $243,672,000 $197,123,000 Net income ...... $1,252,000,000 $1,028,000,000 Net income ...... $46,952,000 $37,639,000 Earnings per share ...... $2.09 $1.74 Earnings per share ...... $1.14 $.92

Oxford Bank Corp. OTCBB: OXBC Universal Truckload 3rd Quarter Sept. 30 2007 2006 Services Inc. Nasdaq: UACL Revenue...... $7,760,000 $8,569,000 Net income ...... ($1,688,000) $829,000 3rd Quarter Sept. 29 2007 2006 Revenue ...... $171,776,000 $171,907,000 Earnings per share ...... ($1.45) $.65 9 months Net income ...... $5,131,000 $5,765,000 Earnings per share ...... $.32 $.36 Revenue ...... $24,141,000 $24,999,000 9 months Net income...... ($693,000) $2,840,000 Revenue ...... $508,831,000 $477,798,000 Earnings per share ...... ($.60) $2.22 Net income ...... $13,032,000 $15,723,000 DETROIT BUSINESS MAIN 10-29-07 A 39 CDB 10/26/2007 4:54 PM Page 1

October 29, 2007 CRAIN’S DETROIT BUSINESS Page 39 Reverse mortgage lender gets tax break, fights allegations

BY CHAD HALCOM tions of one individual who was Mortgage Division was part of First CRAIN’S DETROIT BUSINESS immediately terminated. Not one National Bank in Florida until Fifth You’ve got an estimated 20 million of our customers was defrauded as Third Bank acquired it in 2005. A reverse mortgage lender has “ a result of this individual’s actions, “In every market, like Michi- met one of its growth benchmarks people eligible for reverse mortgage and we look forward to resolving gan, we’re getting into it at the lev- by creating 100 jobs in just four the issue as soon as possible.” months, under a deal with the state lending, and the basic product is something el the market dictates,” he said. World Alliance Financial, pur- “But something like 80 percent of for $3.5 million in tax benefits. chased by New York-based KBC Fi- the lenders in this business were But even as Melville, N.Y.-based the customers are really only nancial Products in August as a sub- not in this business at all two or Vertical Lend Inc. continues its sidiary company, expects to have three years ago, so it really is start- growth in Troy and plans to add 60 beginning to hear about. $100 million in revenue nation- jobs in January, the company ” wide in 2008, Peskin said. ing to catch on.” grapples with allegations of decep- David Peskin, CEO, Vertical Lend Inc. Rob Wyatt, senior vice president Wyatt estimates that the num- tive business practices and use of that Vertical Lend collected fees comment about the practices of the Florida-based Reverse Mort- ber of reverse mortgage applica- unlicensed loan brokers in Massa- totaling $23,541 from loan borrow- there, but the company issued a gage Division of Fifth Third Bank, said tions for Fifth Third companywide chusetts. ers who never received forms and written statement on his behalf: Fifth Third is entering the reverse is roughly doubling every year. Vertical Lend, licensed to oper- disclosures about those payments. “The incident was an isolated mortgage market at a “more con- Chad Halcom: (313) 446-6796, ate in 33 states and in the process Peskin could not be reached for event that resulted from the ac- trolled growth rate.” The Reverse [email protected] of changing its name to World Al- liance Financial, obtained $3.5 million in tax incentives in April from the Michigan Economic Growth Au- thority to locate a national office in Troy and create hundreds of jobs. Last week, the company announced it had created 100 jobs since opening its Troy office in June. That qualifies the company for a $50,000 training grant through the Oakland County Depart- ment of Economic Development and Community Affairs, department Deputy Director Maureen Dono- hue Krauss said. But just two weeks before winning the local and state assistance for its move to Michigan, Vertical Lend received an order from the Massachusetts Division of Banks to cease its lending activity in that state, based on results of a January audit. A hearing is pending on the company’s Massachusetts license. Company President and CEO David Peskin said the Troy operation has been using the World Al- liance Financial name, and all branches and offices will convert to the new name by Dec. 1. He also said the Troy location will become a “national office,” like the company’s Long Island, N.Y., headquarters. The company has already begun interviewing for 60 more hires expected to take place in January. Reverse mortgage lending, available for home owners 62 and older, involves borrowing against existing equity in a home either one time or in payments, which do not have to be repaid until the bor- rower moves, sells the home or dies. After death, the estate must settle the debt with the lender as a lien holder on the property. “It’s a prime market to grow,” Peskin said. “You’ve got an estimated 20 million people (in the United States) eligible for reverse mortgage lending, and the basic product is something the customers are really only beginning to hear about. “And starting next year, 10,000 people every day will be turning 62 and joining the eligible ranks. Since a lot of companies are getting into the field right now, it’s becoming competitive, and that means these customers are going to have a lot of choices and plans with flexibility.” The Massachusetts Division of Banks issued a temporary cease- and-desist order against Peskin’s company April 3, and that order remains in effect this month, said Kim Haberlin, communications director for the Massachusetts Office of Consumer Affairs. The Division of Banks alleges DETROIT BUSINESS MAIN 10-29-07 A 40 CDB 10/26/2007 6:13 PM Page 1

Page 40 CRAIN’S DETROIT BUSINESS October 29, 2007 Energy: Renewable sources scouted Postal Service: Changes ■ From Page 1 ■ From Page 1 that would generate about 600 plants and saved customers mil- tween John Deere Wind Energy and “The postmark has no monetary The consolidation requires ap- megawatts of electricity, enough lions of dollars. Wolverine Power Cooperative. And value. You couldn’t sell it, but it proval in Washington, and would to power some 175,000 homes. Dave Waymire, spokesman for DTE in August announced an carries a sense of the city’s identi- eliminate roughly 160 positions in Lauer said the company is talk- the Customer Choice Coalition, said agreement with Traverse City- ty,” said Dwight Boudreaux Sr., Detroit sometime next year. ing to equipment manufacturers, no new energy investments based wind-power developer Her- president of the Detroit district lo- “... About half of the (160) posi- financing agencies, land owners, should go into a utility’s rate base itage Sustainable Energy L.L.C., cal of the American Postal Work- tions would be eliminated by then engineering firms, wind farm de- until they are competitively bid. which is building turbines on a ers’ Union. “We had a Super Bowl, just through not hiring,” Rettin- velopers and others. The coalition, which encom- 6,500-acre site near Cadillac. General Motors is here, Quicken house said. “The rest would be as- The turbines likely would be passes large- and small-business That project, and an operation Loans is considering moving here, signed transfers, so no one would built in clusters, forming four or groups, consumer interests and announced last week that will con- but we won’t have a postmark.” be laid off.” In a radio advertising campaign five wind farms on the Thumb alternative-electricity suppliers, vert cow manure to electricity, Boudreaux noted that no one that launched last week, the union property. Electricity produced supports Senate legislation that will supply power for DTE’s volun- can be laid off anyway, due to a claimed the consolidation would would flow into Detroit Edison would set up a process for bid- tary “Green Currents” program. long-standing labor agreement in mean job losses and needless de- Co.’s system, and the windmills ding on new plants. Participating Detroit Edison the Postal Service. But he said the lays, because mail would be would be part of the utility’s rate “We believe competition is the customers pay a surcharge for move to Pontiac would be a hard- trucked from Detroit to Pontiac base, just like other power plants. way to move forward on renew- green power that subsidizes Edi- ship for many employees because and back for local delivery. Customer rates would in- ables, as well as more traditional son’s renewable purchases. The of transportation. crease, but that doesn’t necessari- coal, nuclear or natural-gas pow- But local postal officials insist In Detroit, the proposal elimi- program helps build customer de- the change would cause no delays. ly mean higher customer electric- er generation,” Waymire said, mand that, in turn, fuels the devel- nates an operation on one of the ity bills, Lauer said. The utility “because competition is the only Next-day delivery would apply five floors of the mail processing opment of Michigan-based renew- for mail dropped off before 5 p.m. wants any renewable-portfolio way that we will know that able-energy supplies. facility on West Fort Street, which standard enacted by the state to Michigan is getting the lowest- at local post offices or the last pick- DTE’s program, launched in handles mainly outgoing mail, be accompanied by energy-effi- cost power. up time at any mailbox. May, has signed about 5,200 of De- sorting functions and some classes ciency measures that would help “As long as we have a competi- The 24-hour post office within troit Edison’s 2.2 million cus- of business mail. customers reduce their electrici- tive market, we would encourage the main postal facility on West tomers. Consumers Energy’s re- Major businesses and employers ty usage and result in bills that everybody to look at all alterna- Fort Street in downtown Detroit newables program, launched in in the city send outgoing mail are unchanged overall. tives. Right now, we have no idea would continue to offer next-day September 2005, has signed up through that facility, Rettinhouse Also entering into the Capitol whether their (DTE’s) proposed delivery for mail dropped off by 6 11,200 of the utility’s 1.8 million said, but most of the major down- debate and DTE’s wind farm con- wind farm is going to be more or p.m. or 7 p.m., Rettinhouse said. electric customers. town companies with large mail- siderations are changes to Michi- less expensive than one devel- “They’re presenting it as a pro- Dan Radomski, vice president posal, but a lot of times when gov- ings wouldn’t see a change. gan’s 2000 electric choice law. oped by any other company. But Joyce Hayes-Giles, senior vice The law allows Detroit Edison in the competitive market, we of industry services for NextEner- ernment talks about a proposal, gy, a Detroit nonprofit charged it’s really an enactment,” said president of customer service at and Consumers Energy Co. cus- don’t care. What we do object to is DTE Energy, said the company is tomers to choose alternative-elec- … that they build a wind farm with advancing Michigan’s alter- Alvin Samuels, production manag- native-energy industry, said the er for The Technicom Group Inc. in “taking an interest” in the Postal tricity suppliers. But the utilities and that customers then are Service proposal, but DTE pre- say Michigan’s partially regulat- forced to pay what Detroit Edison utilities are preparing for more Highland Park, a direct-mail ser- renewables in their portfolios. vices company. “It’s got some good sorts outgoing mail and should not ed system must change and that says is necessary.” see delays in its billing operation. they need customer certainty if Throughout the state, wind’s “Wind makes a lot of sense for points and some bad points.” “On a personal level, I’d hate to they are to build power plants potential is being examined or the state of Michigan,” he said, Technicom may see some bene- see these jobs leave the city of De- and make other investments. tapped. Consumers Energy, as but state policy, in the form of a fits from trucking direct mail to a troit or for any mail to lose that “We wouldn’t move forward part of its voluntary customer renewable-portfolio standard, or centralized location like Pontiac, city of Detroit cancellation post- with building all this wind with- “Green Generation” renewable- RPS, is key. but the company may have higher mark,” said Giles, who is also vice out fixing electric choice in the energy program, purchases elec- “Wind power, even though it’s fuel costs. Also, some mail clients president of the Detroit Public state,” Lauer said, in reference to tricity produced by two wind tur- very competitive with coal — for receive postal discounts when Schools Board of Education. “But the turbines. bines near Mackinaw City and major projects to find their way Technicom’s presorted mail is from a business standpoint, we’re But customers and others who has entered into contracts with into the state of Michigan, an RPS trucked to specific post offices fairly sure there won’t be much are fighting efforts to eliminate other wind-generation projects, really needs to be in place,” “But with consolidation, that choice say the 2000 law has including one in the Thumb. Radomski said. “An RPS will stim- could be a problem,” Samuels said. change. We advise our customers helped hold down electricity Construction is under way on a ulate the market in a big way.” “How much can they discount us if to pay in a timely fashion to ac- rates, spurred independent pow- $90 million wind farm in Huron Amy Lane: (517) 371-5355, alane now we’re shipping through all the count for mail delivery.” er producers to develop new County that is a joint venture be- @crain.com same points as the fully paid Chad Halcom: (313) 446-6796, mail?” [email protected]

Covisint: Compuware planning $1B IPO for subsidiary ■ From Page 1 ture would boost Compuware’s share price. processed through the company — was foundering. enterprises and named IBM and Oracle as major competitors. “We’ll get some outside advice. They may say, ‘Don’t do It was too scattered in its approach, Paul said, offering on- Covisint claims 270,000 users a month who conduct 10 mil- it,’ ” Paul said. “But there are a lot of variables that feel real- line auctions, inventory tracking, data messaging and other lion transactions or exchanges of information. Paul said 75 ly good.” Web services. percent of revenue currently is auto-related but the goal is When Covisint — which offers secure Web-based ex- Paul said he was told to dissolve the company or fix it. He to bring that down to 50 percent in the next few years as it di- change of data and business transactions to large compa- sold off its auction service, killed other business lines, and versifies its customer base. nies, government agencies and health care organizations — sold what remained to Detroit-based Compuware in 2004. Paul said the company will grow revenue by adding appli- was bought by Compuware in 2004, it had annual revenue of Paul instituted a subscription service, with monthly fees cations, growing its presence in foreign markets, adding $11.2 million. as low as $5,000 for small companies to more than $500,000 more industries to its current mix and, in the release of its Until recently, Compuware (Nasdaq: CPWR) didn’t break for its biggest customers. next platform next year, add a business-oriented version of out Covisint’s revenue in its quarterly earnings report. Paul Customers include General Motors Corp., Chrysler L.L.C., Ford Facebook or MySpace for the automotive community. said the subsidiary had revenue of about $9.5 million in the Motor Co., the state of Michigan, the U.S. Department of “Instead of social networking, we call it first quarter of Compuware’s fiscal year, which ended June Justice, Blue Cross Blue Shield of Michigan and the Bingham professional networking,” Paul said. He 30, and $10.1 million for the quarter that ended Sept. 30, up 40 Farms-based, 2,000-member United Physicians P.C. said it would be a free service that would percent from the same quarter last year. According to a September report by Massachusetts-based generate revenue from advertising. He said he expects revenue to continue to grow briskly — Forrester Research Inc., federated identity management — a “It’s an interesting model,” Jonathan “65 percent growth over the last fiscal year is attainable,” he general term for the Web-based IT services provided by Co- James, vice president of global marketing said. “We think we are at the beginning of a couple of emerg- visint and others to enable organizations to trust each oth- for Troy-based Syntel Inc., a provider of IT ing trends in the B2B space that makes that a low threshold er’s user authentication and give them access to data — is a services, said of Covisint. “From a 40,000- for growth.” largely untapped market. foot level, it makes a great deal of sense. Covisint has 224 employees, about 140 in Detroit and the Forrester predicts the market will double worldwide by The way technology changes so quickly, rest in China, Germany and Raleigh, N.C. Paul said the sub- 2009, with growth driven by the lower cost and ease of use of you don’t want to spend millions on Dell James sidiary has been adding employees at a 15 percent-20 percent going to an outsourced provider. servers.” rate a year. The Connecticut-based research firm of Gartner Inc. said Regarding the plan to create networking for auto execu- In 2003, Paul, then vice president of sales and marketing of the Covisint model is a more robust version of something tives and engineers, James said that while it seems far afield an independent Covisint L.L.C., was named to replace Bruce that flourished briefly but died in the dot-com bust, known from Covisint’s business, it’s important for subscription- Swift and become the fifth president since its founding in 2000. as application service providers, where companies that based service providers to figure out new revenue sources. The online purchasing exchange, much ballyhooed when it couldn’t afford their own software could pay a licensing fee “Is growth sustainable? If it isn’t, how do you increase was formed by the Detroit 3 to transform the way parts were to companies providing access to Web-based versions. revenue? Do you ratchet up prices or look for new sources?” bought in the auto supply chain — Standard & Poor’s Corp. esti- Gartner described this as an emerging market, gave it a James said. mated orders worth more than $200 billion would one day be benefit rating of moderate for small, medium-size and large Tom Henderson: (313) 446-0337, [email protected] DETROIT BUSINESS MAIN 10-29-07 A 41 CDB 10/26/2007 4:56 PM Page 1

October 29, 2007 CRAIN’S DETROIT BUSINESS Page 41 Baseball: Pro team coming to Oakland County www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or posal to enter negotiations to sell give approval for a minor-league Other details about the source of Bill Lee visited the proposed stadi- [email protected] ASSOCIATE PUBLISHER Christopher Crain, (313) public land for a proposed $17.5 team affiliated with Major League funding for the project haven’t um site in August, according to a 446-1645 or [email protected] million baseball stadium. Baseball to locate within 50 miles of been made public. statement issued by the partner- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Andy Appleby, chairman and Comerica Park but doesn’t have The Waterford Township team’s 0460 or [email protected] ship, and said the league is “anx- MANAGING EDITOR Andy Chapelle, (313) 446- CEO of General Sports and Entertain- any veto power over a Frontier 48 home games per season could 0402 or [email protected] ment L.L.C. in Rochester, led the ef- League team, which has no affilia- draw between 175,000 and 200,000 ious to work with the Waterford WEB GENERAL MANAGER Michael Lee, (313) group in bringing professional 446-0416 or [email protected] fort to bring a team to Troy. He de- tion with the major leagues. attendees annually, Hilliard said. ASSISTANT MANAGING EDITOR/FOCUS Jennette clined to comment. In the Troy situation, the team The Tigers drew more than 3 mil- baseball to Oakland County.” Smith, (313) 446-1622 or [email protected] BUSINESS LIVES EDITOR Shawn Selby, (313) This time, the distance and the used its clout to make its position lion people in 2007. Michigan is already home to two 446-1654 or [email protected] Tigers’ improved product on the known to political leaders. But in The starkest contrast might be other Frontier League teams, in GRAPHICS EDITOR Nancy Clark, (313) 446-1608 field reduce the potential of a Waterford Township, that option payroll. or [email protected] Kalamazoo and Traverse City. An- threat to the gate, Matwick said. is dulled because no public land is Frontier League teams are limit- COPY EDITOR Vic Doucette, (313) 446-0410 other is in the works for 2009 in or [email protected] And while the Tigers view the new involved, although site plan ap- ed to a player payroll of $60,000 for DATA EDITOR Anne Marks, (313) 446-0418 or Holland Township. [email protected] team as competition for the limit- proval eventually will be required the entire 24-man roster. The WEB EDITOR Kevin Hill, (313) 446-0473 or ed entertainment dollars in strug- from the township. Tigers spent $95 million on Hilliard has no interest in run- [email protected] The partnership said last month WEB DESIGNER/PRODUCER Ai-Ting Huang, gling Southeast Michigan, the salaries this season. ning afoul of the Tigers, and is (313) 446-0403, [email protected] more looming threats are the city’s that it will build a 3,944-seat stadi- Detroit wouldn’t be the first Ma- laudatory about the team while in- EDITORIAL SUPPORT Anita Duncan, (313) 446-0329; Joanne Scharich, (313) 446-0419 other sports teams and entertain- um — The Diamond at the Summit — jor League market to share space sisting his own venture is good for ment venues. on 10 acres at the corner of Sum- with a Frontier League team — NEWSROOM (313) 446-0329, FAX (313) 446- all involved because it generates 1687 TIP LINE (313) 446-6766 “We compete against the Red mit Drive and Mall Drive East. Chicago, Cincinnati, St. Louis and interest in the game. REPORTERS Wings, Lions and Pistons on the pro The group swung a $1.6 million Pittsburgh each has one within 50 Brent Snavely, senior reporter: Covers auto level for people’s discretionary in- deal for the land with Timana L.L.C., miles of its big-league team. Matwick agreed, with a twist. suppliers, steel and restaurants. (313) 446-0405 or [email protected]. come, against movies or anything a subsidiary of Los Angeles-based “Those franchises are among “It’s all baseball, and we want Robert Ankeny: Covers the city of Detroit, Wayne else a person might choose to Namco Capital Group and owner of the most successful in the Frontier County government, and law. (313) 446-0404 or fans to be thinking about base- [email protected]. spend their money on,” Matwick Summit Place Mall. Terms of the League,” Hilliard said. ball,” he said. “We just want fans Sherri Begin: Covers nonprofits and education. said. “This is a very competitive deal give Timana a 16 percent mi- The partnership will file its fran- (313) 446-1694 or [email protected] to think about the Tigers as their Andrew Dietderich: Covers health care, marketplace in sports.” nority ownership in the partner- chise application with the league transportation, international business and Even if the Tigers wanted to op- ship, said Hilliard, whose Ride the in early November and expects a first choice.” biotech. (313) 446-0315 or Bill Shea: (313) 446-1626, bshea@ [email protected]. pose the new team, options are Wave Indy Baseball L.L.C. is the pro- decision before the end of the year. Daniel Duggan: Covers real estate and hospitality. limited. The club would need to ject’s general partner. Frontier League Commissioner crain.com (313) 446-0414 or [email protected] Chad Halcom: Covers services, environment and Oakland and Macomb counties. (313) 446-6796 or [email protected]. Sheena Harrison: Covers small business, retail and nonautomotive manufacturing. (313) 446- 0325 or [email protected]. Tom Henderson: Covers banking, finance and technology. (313) 446-0337 or MotorCity: Local appeal BorgWarner: Strong [email protected]. Bill Shea: Covers media, advertising and ■ marketing, entertainment, the business of sports, From Page 3 and Livingston and Washtenaw counties. (313) erences and favorite shows are Wings games for a discount, Cohen 446-1626 or [email protected] sales free up cash LANSING BUREAU kept on file at the properties. said. But corporate attorneys are Amy Lane: Covers business issues at the Capitol, Accounts similar to an airline’s examining the legality of using ■ From Page 3 telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or frequent-flyer program are used in tickets to the Ilitch-managed Fox 115 W. Allegan, Suite 220, Lansing 48933. gaming to track gamblers and offer Theatre for gambling incentives. Adams said BorgWarner’s due economy and performance — key ADVERTISING promotions based on the amount MGM officials have said pub- diligence often takes longer than auto trends for which we believe ADVERTISING DIRECTOR Marla Downs, (313) of money spent. With MGM’s na- licly that the nature of competition the average deal because of the demand is growing, in part due 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) tional reach, it has a major advan- in Detroit will be friendly. All the type of companies it tries to ac- to ever more onerous regulatory 393-0997 tage in Detroit, said Callnin. properties, after all, have a com- quire. requirements,” Goldman Sachs ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, “MGM has that database of hun- mon goal of creating a new leisure “We are not buying assets that Group Inc. analyst Robert Barry Cathy Ross, Dale Smolinski dreds of thousands of gamblers, travel market in Detroit. are out there that are being mar- said in a research report issued WESTERN ACCOUNTS Ellen Mazen (Los Angeles) and they will be telling them, Chuck Skelton, president of Ann keted for a sale,” Adams said. (323) 370-2477 Friday. “Longer term, (Borg- CLASSIFIED MANAGER Melissa McKay, (313) ‘When you’re in the Midwest, Arbor-based Hospitality Advisors Even so, BorgWarner has made Warner’s) outlook is bolstered by 446-1692 make sure to Inc., said the casinos will be like several recent acquisitions. Its its aggressive development of MARKETING DIRECTOR Michelle Minor stop by our Wendy’s and McDonald’s, creating biggest deal was the acquisition of EVENTS MANAGER Nicole Wiedling products aimed at fast-growing MARKETING ASSISTANT Jennifer Dunn property in De- synergy for a similar product the majority share of Ludwigs- emerging markets.” MARKETING ARTIST Sylvia Kolaski troit,’ ” he said. while competing. burg, Germany-based electronics One of the products responsi- SALES SUPPORT Suzanne Janik, Andrea MotorCity “You’re overlaying casino hotels supplier Beru AG in 2005 for $554.8 Beckham, YahNica Crawford ble for the rapid growth is its CIRCULATION Candice Yopp, Manager. COO Rhonda in an area that has been 65 to 70-per- million. dual-clutch transmission tech- PRODUCTION MANAGER Wendy Kobylarz Cohen down- cent commercial travel-oriented,” And, on Sept. 30, 2006, Borg- nology. Dual-clutch transmis- PRODUCTION SUPERVISOR Larry Williams, played MGM’s he said. “So the casinos are looking Warner acquired the European (313) 446-0301 sions are essentially manual SUBSCRIPTIONS (313) 446-0450, databases, em- to create a significant amount of transmission and engine con- transmissions that offer the op- (888) 909-9111 phasizing her leisure travel for Detroit.” trols product lines from Eaton TO FIND A DATE A STORY WAS PUBLISHED: tion of driving in an automatic (313) 446-0367 or e-mail the Crain Information Cohen company’s local They have to create hundreds of Corp. for $63.7 million. mode. Center at [email protected]. ownership by thousands of room nights for In 2004, BorgWarner reported BorgWarner makes clutches CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Marian Ilitch as key to under- CRAIN COMMUNICATIONS INC. themselves each year, something total sales of $3.5 billion and and clutch control modules. standing Detroit. CHAIRMAN Keith E. Crain that didn’t exist before. earnings per share of $3.86. Earlier this month, BorgWarn- PRESIDENT Rance Crain “MGM has made a big deal MGM was the first to open its This year, the company’s sales er said it expects production of SECRETARY Merrilee Crain about bringing Las Vegas to De- TREASURER Mary Kay Crain hotel, Oct. 3. MotorCity announced have already exceeded $3.96 bil- its dual-clutch transmission troit,” she said. “MotorCity is last week that its Nov. 1 opening Executive Vice President/Operations lion, and the company is fore- modules to increase 500 percent William A. Morrow bringing Detroit to Detroit.” has been delayed by ongoing labor casting year-end earnings of in the next six years. By 2012- Group Vice President/Technology, She said the architecture and de- negotiations, the state government $4.73 to $4.83 a share. Manufacturing, Circulation sign of the hotel reflect the city’s in- 2013, BorgWarner projects it will Robert C. Adams shutdown, staff training and deliv- But while BorgWarner’s stock Vice President/Production & Manufacturing be producing 2.3 million dual- dustrial past in an effort to better ery of room furniture. It is expect- price has risen steadily over the Dave Kamis connect with regional customers. clutch transmissions per year. Corporate Director/Circulation ed to open mid-November. past 12 months from a 52-week Patrick Sheposh Today, suppliers produce few- While MotorCity can’t bring em- Greektown Casino L.L.C. is expect- low of $56.42 on Nov. 3 to more G.D. Crain Jr. Founder (1885-1973) ployees from Las Vegas for its ed to open its hotel next year. than $90 per share in recent er than 450,000 total dual-clutch Mrs. G.D. Crain Jr. Chairman (1911-1996) opening as MGM did, it can im- Being the first to open is not cru- weeks, the company did not get transmissions a year. EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) press people with ingenuity. cial, analysts say, because it will much of a stock price bounce On Oct. 24, BorgWarner an- 446-6000 The hotel will use technology to take years for the properties to sta- from its earnings announcement. nounced it is supplying Nissan Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out cater to repeat customers. Details bilize. Analysts predict enough That’s because the company’s with dual-clutch technology for of state, $79 one year, $138 for two years. such as the room temperature and the 2008 Nissan GT-R sports car, Outside U.S.A., add $48 per year to out-of-state gambling revenue for all three op- stock price already reflects much rate for surface mail. pillow selection — from the “pillow erations. of the company’s future growth, which debuted last week at the Reprints: For inquiries call the reprints department at: (800) 494-9051, Ext. 144 , or at menu” — will be saved in a data- Callnin said the first casino in according to a report issued Fri- Tokyo Motor Show. [email protected] base and recalled for a repeat user. Connecticut was making $1 billion day by Robert W. Baird & Co. ana- Manganello said the Nissan GT- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the Cohen also expects to have an ad- per year. When the second opera- lyst David Leiker. R will likely lead to additional busi- second week in August by Crain Communications vantage in offering packages that tion opened, most expected both to BorgWarner’s stock closed Fri- ness with Asian automakers. Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and will have stronger appeal to region- make $500 million. day at $97.96, up $3.31 from its “It’s going to be a halo product additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, al gamblers — sports tickets pack- “The truth was, they have both close Wednesday, the day before in terms of getting the attention Circulation Department, P.O. Box 07925, Detroit, leveled off at $1 billion a year,” he of the Japanese (automakers),” MI 48207-9732. GST # 136760444. Printed in aged with hotel stays, for example. it released earnings. U.S.A. MotorCity Casino cannot legally said. “(BorgWarner’s) products Manganello said. Entire contents copyright 2007 by Crain Communications Inc. All rights reserved. acquire tickets to Ilitch Holdings- Daniel Duggan: (313) 446-0414, marry technology to mechanical Brent Snavely: (313) 446-0405, Reproduction or use of editorial content in any owned Detroit Tigers and Detroit Red [email protected] parts to improve emissions, fuel [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 10-29-07 A 42 CDB 10/26/2007 6:14 PM Page 1

Page 42 CRAIN’S DETROIT BUSINESS October 29, 2007 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 20-26

Retailers Association, said Dome’s editorial content State closes College football will for now change monthly, but the free magazine eventually may become a on Northville worth more than weekly. Its stated mission is to give readers “a better un- derstanding of what’s going land sale Super Bowl on in Michigan when it comes to influencing and he state has closed a hank goodness for joint research occurring at making public policy,” in- $31.5 million deal to those Johnsonville UM, MSU and Wayne State cluding “the persuaders, T sell the Northville Psy- T Brats. University. The bigger study personalities, relationships chiatric Hospital site to REIS- The 15 home football is being used as a bench- and forces at work, be they Northville L.L.C., according to games of University of Michi- mark for progress by the in or far from Lansing.” a Wednesday statement by the Michigan Department of gan and Michigan State Uni- corridor. The magazine is pub- versity are worth $177 mil- “This was a component of Management and Budget. lished at www.dome CHRISTOPHER LARK lion to the state in direct our analysis. Football, we REIS is a joint venture of magazine.com. and indirect economic im- thought, was interesting. Bloomfield Hills-based Real HAT DO YOU THINK OF THAT pact, or more than triple We thought it would be Estate Interests Group Inc. W ? the value of Super Bowl XL at fun,” said Caroline Sallee, a BITS & PIECES and Livonia-based Schostak AT&T Inc. has donated “Young Woman and her Suitors,” the Ford Field in 2006. consultant for Anderson Bros. & Co. Inc. The develop- Alexander Calder sculpture once displayed outside its Ⅲ Detroit Institute of Arts That’s according to a new who worked on the study. ers won the 414-acre site in headquarters, to the Detroit Institute of Arts. It will be repainted study by Anderson Economic fans can take home a piece Northville Township dur- its original black and displayed in the spring. The DIA also got of the museum when it re- back its famous Auguste Rodin sculpture, “The Thinker,” from Group L.L.C., a Lansing- Lobbying magazine returns ing an auction in May 2005. the Frederick Meijer Gardens and Sculpture Park in Grand based economic and busi- opens Nov. 23. REIS wants the site for Rapids Wednesday. It had been displayed there during the ness consultant. After a 20-month hiatus, a The DIA Museum Shop an $800 million mixed-use DIA’s renovation, which continues until Nov. 23. Anderson’s methodology magazine on the Michigan will be selling, among other development, called High- didn’t include any penalty lobbying world has made a things, tables made from wood. Plans call for 42.2 unanimously to allow Fish- buying the building at 1001 for the Wolverines’ loss to return. the old exterior granite acres of retail space, med- bone’s owner Ted Gatzaros to Woodward instead of the Guardian Building for office Appalachian State University Now online and called walls of the museum. ical office space and retail, own 1 percent of Greektown or the Spartans’ stumble and 1,000 residential units. space, the Detroit Free Press Dome, the former Michigan As part of the museum’s Casino L.L.C. against Northwestern Univer- Lobbyist magazine is “big- reported. $158 million, six-year reno- Gatzaros and his wife, sity. And those involved say ger, better, broader, more Maria, owned 40 percent of Ⅲ Troy-based Delphi Corp. vation, the shop was ex- Macomb petition: Change the study has nothing to do frequent and less expen- the casino before it was gained bankruptcy court ap- panded and relocated to the with the Big Ten confer- sive,” editor and publisher exec, government built along with partners proval Thursday to sell its ence’s nasty standoff with Tom Scott said. Farnsworth Street en- Jim Papas Viola Papas interiors and closure sys- A ballot committee of Ma- and . cable providers over its Scott, whose other occu- trance. comb County business, la- But all four had to sell after tems business to Inteva Prod- new television network. pation is vice president of Items from the museum bor and political interests the gaming board said the ucts L.L.C., which is owned Super Bowl XL was shop also will be available public affairs and commu- submitted a petition Mon- applicants didn’t meet li- by New York industrialist worth $56 million Michigan nications for the at www.dia.org. day with 35,072 signatures censing requirements. Ira Rennert, for $106 million, statewide, according to An- calling for a restructured The casino’s majority barring a higher offer at auc- derson. For the Big Ten government and a new coun- owners, the Sault Ste. Marie tion, Bloomberg News re- comparison, the group re- ty executive. Tribe of Chippewa Indians, ported. vised a previous study it Charter = County Executive, will transfer the 1 percent Ⅲ had done on the National The city of Detroit has which had six months to col- stake to satisfy a debt to Football League title game’s proposed selling 92 parks it lect 29,000 signatures from Gatzaros stemming from impact on metro Detroit, to says are underused and registered county voters, his $260 million sale of the reflect a statewide impact. could be redeveloped, with turned in its petition to casino to the tribe. While the Super Bowl the proceeds used to im- County Clerk Carmella drew 70,000 fans, the MSU prove other city parks, the Sabaugh. The clerk has 30 and UM games this year OTHER NEWS Detroit Free Press reported. days to authenticate the sig- will attract 1.37 million Ⅲ Ⅲ Unions representing natures and determine Detroit-based Gleaners employees of MGM Grand De- fans. And of the $177 mil- whether the group has met Community Food Bank of lion, $88.7 million is in di- its threshold. Southeastern Michigan on troit Casino reached an rect impact, such as tickets, Grace Shore, co-treasurer Monday launched a cam- agreement with manage- parking, concessions, and of Charter and CEO-COO of paign to raise $1 million by ment Thursday night. food and drinks before and Thanksgiving. Ⅲ Fifty-six percent of the Macomb County Chamber Ⅲ after the games, according GLENN TRIEST of Commerce, said the group The U.S. Department of Chrysler L.L.C. workers rep- to the study. hopes to have a charter Labor said Tuesday that resented by the United Auto The study is part of a CELEBRATING 40 WINNERS question on the election bal- Troy-based Delphi Corp. Workers had approved man- larger project commis- lot in May. cheated its workers out of $3 agement’s contract offer by Steve Tapper of Tapper’s Jewelry, Soojin Kwon Koh, director of sioned by the University Re- William Crouchman, chair million by not properly re- press time Friday, with search Corridor, a group admissions and financial aid at UM’s Ross School of Business, paying them for money lost and at the 40 under 40 reception Tuesday at Rock of the Macomb County Board workers at assembly and formed to heighten visibili- Suk Koh due to an investment mis- Financial Showplace in Novi. Soojin was a 40 under 40 winner. of Commissioners, said the stamping plants in ty of the individual and take in a retirement plan, county is still weighing a Belvidere, Ill., scheduled to the Detroit Free Press report- proposal for an “optional- complete voting Saturday, ed. The department has filed unified” county executive Automotive News reported. appointment — a position an unsecured claim for the defined by state law instead money against Delphi. of by county charter — as an Ⅲ The September unem- OBITUARIES See top wheels and look on the Bright Side alternative to the charter ployment rate for the De- Ⅲ troit area was 7.7 percent, Stanley Marx, former Your test drive isn’t over yet. In . Scott Stinebaugh, director of ballot. He also said the Char- Detroit compared with 7.9 percent owner of Industrial Smelting addition to our Executive Wheels sales and marketing for the hotel, ter group’s initiative, if suc- in August and 7.2 percent a Co. in Detroit and husband vehicle guide and package of stories discusses the challenges of renovating cessful, would call for at of filmmaker Sue Marx, that begins on Page 25, we have lots year ago, according to data the Detroit landmark, its importance to least five elections: one for died Oct. 21. He was 83. more cars on our Web site. There are the city and the anticipation over its released Thursday by the the ballot question, then a Ⅲ Doris Mosher, former five more picks in each of the seven 2008 opening, evidenced by 60 of the primary and a general elec- Michigan Department of Labor categories, to be exact, selected by chairwoman of the Oakland 67 permanent residences there already tion for new county commis- and Economic Growth. Crain’s staff based on reviews from being sold. Community College Founda- sioners and for a new county Ann Arbor area unem- sister publication AutoWeek. Zoom We also have added new slideshows ployment was 5.1 percent in tion and wife of founding over to executive. www.crainsdetroit.com/ for recent Crain’s events that honored September, compared with college board Chairman wheels to see if your favorite made it George Mosher, died Oct. into the top 10. our Most Influential Women and 40 5 percent in August and 4.7 selections. And there’s Board lets Gatzaros own percent a year ago. 17. She was 83. While you’re visiting our Web site, WEB WORLD under 40 more special content planned in Ⅲ Wayne County Com- Ⅲ John Sheridan, partner make sure to watch the latest in our Kevin Hill 1% of Greektown Casino Bright Side Video series. “Saving the November, including our executive missioners Bernard Parker at the law firm of Heritier Book Cadillac” takes you inside the epic guide and corporate gift guide, so keep on The Michigan Gaming Con- and Philip Cavanagh have Nance & Sheridan in Troy, restoration effort at the Westin Book Cadillac clicking! trol Board on Monday voted asked the county to explore died Oct. 13. He was 52. DBpageAD.qxd 10/24/2007 11:25 AM Page 1

Wayne State University School of Business Administration Making a difference through research, teaching and leadership

Abhijit Biswas, PhD Hugh Cannon, PhD Kmart Endowed Chair and Adcraft/Simons-Michelson Professor of Marketing Professor of Advertising Richard Osborn, DBA Toni Somers, PhD Selected by the Journal of Distinguished University Professor of Information Conducts research into media Business Research for the 2007 Professor of Management Systems Management planning theory, the theory of Michel Laroche Outstanding marketing simulation, game Research interests include Research focuses on Associate Editor Award for development and the role international alliances, contextual manufacturing strategy, exceptional mentoring of of marketing in economic leadership and strategic co- manufacturing management authors submitting papers for development. evolution. and information systems. publication review.

Arik Ragowsky, PhD Sudip Datta, PhD Associate Professor of T. Norris Hitchman Endowed Information Systems Chair and Professor and Manufacturing; Alan Reinstein, DBA, CPA of Finance Director, Center for George R. Husband Research interests include mergers Information Systems and Professor of Accounting and acquisitions, divestiture, Manufacturing Research focuses on the way debt structure, insider trading, Developed a model to assist in which CPAs and others executive compensation and manufacturing companies in apply accounting and auditing investment banking. Ranked by better planning and use of standards; also studies the the Journal of Finance among the enterprise resource planning analysis, detection and world’s top 1 percent of ﬁnance systems. prevention of fraud. researchers.

The Wayne State University School of Business Administration, Michigan’s only urban business school, has been preparing students for meaningful and productive careers since its founding in 1946. The school is dedicated to excellence in business education and research, and maintains its high standards by continuously analyzing and adapting to the needs of a dynamic, globally competitive marketplace. Recently, the School of Business Administration was selected for the annual Princeton Review listing of the nation’s best business schools. I am proud to introduce seven outstanding faculty members whose innovative research and superlative teaching are making signiﬁcant contributions toward revitalizing Michigan’s economy.

David Williams, PhD Dean

busadm.wayne.edu DBpageAD.qxd 10/12/2007 3:03 PM Page 1

OUR FREE SMALL BUSINESS CHECKING ACCOUNT COMES WITH A SIGNED PORTRAIT OF BENJAMIN FRANKLIN.

Now when you open a Free Small Business Checking Account, we’ll give $100 BONUS you $100.* You’ll also see how easy banking can be with 500 free monthly transactions,** no minimum monthly balance, free online banking and bill pay, and a business debit card for quick and easy purchases. Plus, access to a large branch network and more than 18,500 ATMs along your way. Wherever you are. To open your account, simply stop by your nearest LaSalle Bank branch. Or, for more details call (800) 697-3300 or visit lasallebank.com.

* The minimum deposit to open a Free Small Business Checking account and earn the $100 cash bonus is $1,000. Bonus will not be considered part of the minimum opening deposit. To be eligible for the Bonus, you are required to sign up for a LaSalle Business Debit Card at the time of account opening and enroll in Online Banking for Business within 30 days of account opening. You are also required to make a purchase with your new Business Debit Card within 60 days of account opening. Bonus will be credited to your Free Small Business Checking Account within 120 days of account opening provided the stated requirements have been met. Offer available for a limited time and is for new business accounts only with funds not currently on deposit. Bonus is limited to one per customer, may not be combined with any other offer, is not transferable, and may be considered income to you for tax purposes. ** An Excess Transaction Fee of $0.50 will be applied to each transaction over the monthly limit. Special Service Fees may apply. Account access available at all ATMs owned and operated by LaSalle Bank and Bank of America. Access at Bank of America ATMs is limited to cash withdrawals. LaSalle Bank N.A., LaSalle Bank Midwest N.A. Members FDIC. ©2007 LaSalle Bank Corporation.