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DETROIT BUSINESS MAIN 12-03-07 A 1 CDB 11/30/2007 6:38 PM Page 1

http://www.crainsdetroit.com Vol. 23, No. 49 DECEMBER 3 – 9, 2007 $2 a copy; $59 a year

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Group shoots for $5.5M House energy hearings near for NCAA tournament The local organizing for the coalition and partner in committee for the 2009 Bills plan new rules for rates, renewable energy Lansing public-relations firm Mar- NCAA Final Four men’s bas- tin Waymire Advocacy Communica- ketball games at Ford Field BY AMY LANE plants and other electricity gener- tomer Choice Coalition, a group of tions Inc. plans to raise $5.5 million CAPITOL CORRESPONDENT ation, and narrow the Michigan consumer interests, business However, other forces are push- by February to pay for the law that lets customers choose al- groups and alternative-electricity ing for action. on-site organizing and sup- LANSING — A battle over ternative-electricity suppliers. suppliers. DTE Energy Co. and CMS Energy port functions for the bas- Michigan’s energy future may be Accavitti’s hope: To have an en- The group supports continua- Corp. say they still need repeal or re- ketball games. about to heat up in the Capitol. ergy package through the House tion of Michigan’s electric-choice form of Michigan’s partially com- The money will be used House Energy & Technology and to the Senate by the time the law, as envisioned under a compet- petitive, partially regulated system to pay for volunteer ex- Committee Chair Frank Accavitti, Legislature breaks for the holi- ing Senate package of energy bills. that allows utility customers to penses, transportation, D-Eastpointe, plans to start hear- days. “We think this is an issue that move to alternate suppliers. housing and coordinating ings, possibly this week, on a pack- “Is that possible? I think so,” he deserves lengthy, serious consid- Jeff Holyfield, CMS director of ancillary events, such as age of bills that would set new said. eration by the Legislature. We news and information, said an NCAA coaches’ conven- standards for renewable sources of But the prospect of fast action on can’t see any reason why there preparatory work on CMS’ new tion and a fan event at energy and energy efficiency, alter a complex set of bills, legislatively should be any hurry to make these 800-megawatt coal-fired plant had Cobo Center. utility-rate structures, establish a linked so that all must pass for kind of changes in a hasty way,” to start for the more than $2 billion “Those are some of the new approval process for power each to take effect, alarms the Cus- said Dave Waymire, spokesman See Energy, Page 29 things that the (host) city is required to provide during the Final Four,” said Dave Beachnau, executive director of the Detroit Metro Sports Commission, which is part of the organizing com- Tigers lottery? mittee. Packages are expected to Vindication at range from $50,000 to MLB eases up, a See This Just In, Page 2 Valassis? bit, on gambling NEW CRAIN’S AWARDS BY BILL SHEA RECOGNIZE WORK M&A Advo purchase, first panned, now panning out CRAIN’S DETROIT BUSINESS Involved in a merger or Feeling like a little game of chance at acquisition in 2007? Comerica Park? You may be eligible for the first BY BILL SHEA or stock buyback Two kiosks at the stadium this past sea- Crain’s M&A Awards contest. CRAIN’S DETROIT BUSINESS loomed as Valassis saw son sold $5 scratch-off Michigan Lottery tick- Crain’s Detroit Business is its 2006 revenue drop 7.7 ets emblazoned with the working with the Detroit chapter Wall Street wanted Alan percent to $1 billion. Detroit Tigers logo. Prizes of the Association for Schultz’s head. What investors did- varied up to $100,000, and Corporate Growth to honor What it got, at least for n’t expect was the included team merchan- companies and individuals in one quarter, was evidence the following categories: Advo deal. dise and even season Schultz used that head to Reaction was nega- tickets. Best Deal of the Year – Three improve his company awards: Up to $25 million in tive and swift, even Legalized gambling, and outwit his critics. value; $25 million-$100 million; Schultz more so after Valassis once unthinkable in Schultz — chairman, and $100 million or more. discovered issues with relation to Major president and CEO of Livo- Dealmaker of the Year – M&A PROFILE Advo’s financials and sued League Baseball, has nia-based newspaper THE DEAL experts, lenders, CPAs, to halt the acquisition. The gradually gained lim- Name: Alan coupon maker Valassis Com- consultants and attorneys, How Valassis companies eventually ited acceptance in Schultz munications Inc. since 1998 — acquired Advo, among others, are eligible. agreed to trim $125 million the game as a source Age: 48 surprised investors and ana- Page 28. Lifetime Achievement – Senior- off the sale price and the of revenue. The Family: Wife, Eva; lysts with his decision in level executive who has been deal was finalized in March. A lottery ticket same Major League two grown sons. July 2006 to acquire Advo involved in significant A second quarter that saw Valas- with Detroit Tigers logo. Baseball that once transactions and made a Hometown: River Inc., a Connecticut-based direct-mail sis’ net income drop 50 percent fur- banned Willie Mays and Mickey Mantle for significant impact on the Rouge. giant, for what ended up being $1.2 bil- ther eviscerated its stock. In 2005, being associated with casinos has cautious- community. Education: lion. shares traded at more than $40, but ly embraced advertising and sponsorships Best Minority Enterprise Deal Bachelor’s Wall Street had expected Schultz by Aug. 6, the price reached a 52- from various legalized gambling outlets — Applications for the M&A awards degree in to do something since Valassis’ stock week low of $7.67. provided the casinos or lotteries don’t per- can be found at business and profits were sliding due to a administration in All the time, Schultz was preach- mit betting on games. www.crainsdetroit.com/ price war with its primary competi- finance and ing — perhaps pleading — patience. Betting at games and betting on games is nominate beginning Wednesday. tor, News America Marketing, a New The deadline for entering is Jan. accounting from Give it time, he said. Adding Advo’s the crucial difference. York City-based subsidiary of Ru- 10. Winners will be announced the University of direct-mail business — those ubiqui- But those who keep tabs on the business pert Murdoch’s News Corp. at a March 6 strolling dinner at Michigan. tous “Have You Seen Me?” mailers side of the game agree that baseball is more the Troy Marriott. Analysts thought a restructuring See Valassis, Page 28 See Lottery, Page 28

BUSINESS LIVES CRAIN’S LIST Splitting assets after a split, Largest hospital companies,

NEWSPAPER Page 17 Page 14 DETROIT BUSINESS MAIN 12-03-07 A 2 CDB 11/30/2007 6:39 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS December 3, 2007

quarters to Sunnyvale, Calif., building at 1441 E. Maple Road will be one of the talking points WHO ARE THE TOP CFOS? THIS JUST IN last year after receiving a ven- for $2.4 million, moving from a of an India visit in January by lo- ture-capital round of $10 million 7,200-square-foot building in cal business and civic leaders, co- CFOs are often the unsung ■ From Page 1 in 2005 from two Silicon Valley Madison Heights. The company sponsored by the Detroit Regional heroes of an organization’s senior VCs, Foundation Capital and Menlo will use more space than at its Chamber and the Detroit Regional management team. These leaders are grappling with budget $750,000. Bill Ryan, hired as execu- Ventures, but he and the design last building, but will be leasing Economic Partnership. tive director of the organizing staff of eight remained in Detroit. 17,000 square feet. pressure and increased red tape, Oakland County Executive L. and are contributing to strategic committee in August, said Gener- McCorquodale said he has al- Royal Oak-based CORE Partners Brooks Patterson will join Cham- planning in new ways. al Motors Corp. has committed to a ready made offers to some elec- represented both the buyer and ber President Richard Blouse Jr. Crain’s Detroit Business is $750,000 package, and he expects the seller, an investment group trical engineers and hopes to add and some of their staff visiting IT seeking nominations for its Ford Motor Co. and Chrysler L.L.C. with Southfield-based Ari-El Enter- five in Detroit in the next six businesses. second-annual to make commitments soon. months and as many as 15 over prises as managing partner. CFO awards to GM CEO Rick Wagoner, a for- the next two years. — Daniel Duggan Crain’s hires Web manager give mer Duke University basketball — Tom Henderson recognition to player, is chairman of the orga- Alan Baker has joined Crain’s these financial nizing committee’s executive Doner names executive Detroit Business as Web general leaders. committee. Ryan, whose Grand Fairlane Club sale closes Brett Groom has been promoted manager. Winners and Rapids-based The Ryan Marketing to the newly created position of Baker, 39, was executive pro- finalists will Fairlane Club Holdings L.L.C. re- be recognized Group has been a technical con- chief digital officer at Southfield- ducer and Web manager for cently closed on its purchase of at a June event. sultant to the NCAA for 16 years, based advertising agency W.B. WTOL.COM and WTOL-TV Channel The Fairlane Club, 5000 Fairlane To nominate someone, visit is handling day-to-day oversight. Doner & Co. 11 in Toledo, the CBS affiliate. Woods, Dearborn, from Ford Mo- www.crainsdetroit.com/nominate. Groom joined Doner in 2005 as That sta- The games are set for April 4 tor Land Development Corp. and Nominations must be received by and 6, 2009. senior vice president, director of tion’s Web site plans a $6 million renovation to Jan. 7. — Bill Shea multi-channel marketing. was named be started early next year. To be eligible, nominees must be In his new position, he’ll over- best in its class Terms were not disclosed. CFOs or hold an equivalent job. see Doner’s digital strategies, in 2003, 2004, The new owners of the 114,500- Judges will select winners based Mobius will use $10.2M grant come up with new digital offer- 2005, 2006 and square-foot social club are a pri- on excellence in financial or other ings and hire staff. The agency, 2007 by the to expand Detroit office vate group of investors led by corporate operational the largest independent ad com- Ohio Associated management. Nominees will be Michael McCorquodale, chief Nasser Beydoun, chairman of the pany in the U.S., does interactive Press Broad- considered from the following technology officer and founder of Dearborn-based American Arab work for more than 30 clients. casters. categories: public companies, Mobius Microsystems Inc., a Univer- Chamber of Commerce. The sale Groom previously worked at Baker has private companies, nonprofits sity of Michigan spin-off, told closed Nov. 16. Baker Young & Rubicam’s Seattle office. been in jour- and community service. Crain’s Friday that his company — Robert Ankeny He also worked for Sears, General nalism for 18 years, starting as a Questions? Contact Jennette has received $10.2 million in ven- reporter and photographer at Motors Corp., Kellogg’s and Smith, assistant managing ture-capital funding and will use WWNY-TV Channel 7 in Watertown, Media Genesis buys building Motorola. editor/Focus, at (313) 446-1622 the money to expand its down- N.Y. or [email protected] about the — Bill Shea town Detroit design center and A Web site development com- He has a bachelor’s degree in process. Contact Jennifer Dunn of bring its timing devices for regu- pany has purchased a 35,000- English writing from the State our marketing department at lating internal computer process- square-foot Troy office building Chamber India tour planned University of New York at Potsdam. (313) 446-6786 or es to market next year. as it expands the company. An Indian-themed business in- He can be reached (313) 446- [email protected] with any The company moved its head- Media Genesis purchased the cubator in Southeast Michigan 0416 or at [email protected]. technical questions about the form. DETROIT BUSINESS MAIN 12-03-07 A 3 CDB 11/30/2007 6:52 PM Page 1

December 3, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S GlobalHue to add 100 to staff INDEX Getting it: 12,000-square-foot New York office and Marian Restructuring to put 25 jobs in Southfield accounts for 48 percent of the firm’s Ilitch says business. the alHue chairman and Those operations are moving to a MotorCity BY BILL SHEA Casino is CRAIN’S DETROIT BUSINESS CEO Donald Coleman. 40,000-square-foot office in New York’s different OntheGrow “It allows us to re- financial district by the end of this year. because, Southfield-based multicultural adver- cruit the best talent to The company recently hired Linda De “We get On the Grow is a tising and marketing agency GlobalHue run these operations. Jesus-Cutler to run GlobalHue Latino. the beat feature that will of expects to hire 100 new staffers as part of We think it’s a better She comes from the New York-based His- appear in most Detroit.” a $4 million organizational restructur- panic marketing company The Bravo issues highlighting structure for the evo- Page 6. ing to be completed by Jan. 1. Group, where she was president and Ilitch growing companies, lution for our compa- Health COO. She’s a former Crain’s New York large and small. The firm is dividing itself into units ny.” care bandage: Industry Know of a company aimed specifically at African-American, The new units will Business “40 under 40” honoree. executives are trying to Hispanic, Asian and multicultural youth GlobalHue The reorganization is aimed to posi- stem the flow of bad debt you think Crain’s Coleman be called to shore up profits. should write about? segments. The restructuring includes 25 Latino, GlobalHue tion GlobalHue to take better advantage Page 11. Contact Managing new hires in Southfield with the remain- African-American, GlobalHue Asian and Pa- of the $3 trillion that the Selig Center for Economic Growth at the University of Geor- D Show crowd D-lighted: Editor Andrew der in New York. cific Islander and GlobalHue Next. Nearly 800 packed into Chapelle at “We want to be more in-depth in each The agency is especially looking to gia estimates will be the combined buy- the Max M. Fisher Music [email protected] of our cultural areas and delineate those bolster its Hispanic market share, which ing power of African-American, Hispan- Center for the first D Show, which celebrated areas to our potential clients,” said Glob- is mostly handled from the company’s See GlobalHue, Page 29 creativity and originality in Detroit. Page 23. These organizations appear in this week’s Crain’s Detroit Business:

1001 Woodward Office L.L.C...... 26 Adcraft Club of Detroit ...... 23, 30 Advo Inc...... 1 American Axle ...... 4 Second try for Guardian vote Angels’ Place ...... 24 Ascension Health ...... 12 Bar Louie ...... 20 Brain Injury Association of America. 11 Brookings Institution ...... 3 Foes on county commission still pushing to buy 1001 Woodward Business of Sports Network ...... 28 CMS Energy Corp...... 1 Critical Signal Technologies Inc. . . . 13 BY DANIEL DUGGAN Proponents of the Guardian Building deal say D Council...... 23 Deloitte & Touche L.L.P...... 28 CRAIN’S DETROIT BUSINESS the county needs to consolidate its many down- Detroit Entertainment L.L.C...... 6 town offices, but also needs an alternative home Detroit Institute of Arts...... 27 When Wayne County Executive Robert Ficano due to the expiration of its lease at 660 W. Ran- Detroit Metro Sports Commission . . . 1 announced plans in July to buy the Guardian Detroit Regional Chamber...... 3 dolph. The county will pay higher rent on Ran- Detroit Tigers ...... 1 Building in downtown Detroit, the deal seemed dolph after a temporary lease expires Jan. 1 and Dietz Trott Sports & Entertainment . 28 imminent. might have to move out. DMC Rehab. Institute of Michigan . 11 The Wayne County Commission approved a pur- DTE Energy Co...... 1 Ficano and his staff are toe-to-toe with Commis- Gallup Organization ...... 25 chase agreement in an 8-7 vote Aug. 30, but the sion Chair Jewel Ware over the Guardian Build- Gilda’s Club Metro Detroit ...... 19 deal has struggled since then. ing deal, and the commission is divided on the is- GlobalHue ...... 3 Thursday, the remaining Guardian Alarm Co...... 13 sue. Haven ...... 25 item in need of legislative ap- One group of commissioners tried to pass the Health Management Associates . . . 13 proval — $53 million in bonding bonding measure during a special meeting Ilitch Holdings Inc...... 6, 28 for the Guardian, a vacant Intl. Auto. Components Grp. NA Inc. 24 Wednesday, but fell just a vote short. Jaffe Raitt Heuer and Weiss P.C.. . . 18 building and a parking deck — Ware may not have the votes to defeat the bond- Long Point Capital Inc...... 24 comes before the commission ing measure, but she has publicly challenged Fi- Major League Baseball...... 1 for a second attempt. Mars Advertising Co. Inc...... 29, 30 cano’s deal and voted against it in August. Martin Waymire Advocacy Standing in the way of the “Speaking for myself and not other members of Communications Inc...... 1 purchase is a 290,000-square- the commission, we have to explore all of the op- McLaren Health Care Corp...... 11 foot building at 1001 Woodward. tions before we go head over heels for the Michigan Assoc. of Realtors ...... 18 Ficano Michigan Health & Hospital Assoc. . 11 Opponents question whether Guardian Building,” Ware said. 1001 Woodward Ave. Guardian Building Michigan Lottery ...... 1 the county should buy more space than it needs at Asked if she believes the county needs another Michigan Municipal League ...... 29 the Guardian Building, thus entering the real es- MotorCity Casino ...... 6 building, she said, “I haven’t seen any studies Natl. Kidney Foundation of Mich. . . 19 tate business by having to lease space. about that.” BATTLE OF THE BUILDINGS NCAA...... 1 An alternate proposal urges the county to con- She cited $44 million in savings that could come County debates whether bigger is better. For NextEnergy...... 23 sider 1001 Woodward, which could be fully occu- Oak. Cty. Dept. of Econ. Dev. & the specs, see Page 26. Community Affairs ...... 23 pied by the county. See Guardian, Page 26 Oakland Cty. Family Court...... 17 Restaurants-America ...... 20 Robert Bosch L.L.C...... 23 Scientific Games Inc...... 28 Seneca Partners L.L.C...... 13 Soma Intimates ...... 19 Somerset Collection ...... 19 Somerset Inn ...... 19 St. John Health...... 11 Strathmore Development Co...... 27 Taktix Solutions L.L.C...... 26 The Baskin Law Firm P.C...... 17 Great Lakes states mull compact TREA Corp...... 18 Trinity Health ...... 12 United Auto Workers ...... 4 BY CHAD HALCOM Wisconsin, Illinois, Pennsylvania, New York, issues that they (candidates) should hear.” United Way ...... 13 CRAIN’S DETROIT BUSINESS Minnesota and parts of Iowa, Kentucky, West Vir- John Austin, vice president of the State Board University of Michigan ...... 12, 27 UM Health System ...... 12 ginia and Missouri. of Education and a fellow at the Brookings Institu- Valassis Communications Inc...... 1 The Detroit Regional Chamber, in partnership “We want to review the re- tion, said he hopes up to 30 or 40 chambers or oth- Wayne County Commission ...... 3 with the Washington-based Brookings Institution, port and discuss it with Brook- er institutions take part. Wayne County Family Court...... 17 will host up to 40 chambers from throughout the ings, since their representa- Wolking said four chambers are selecting and BRIEFLY ...... 24 Midwest at a February conference in the Detroit tives will be there at the inviting the others to join the one- to two-day gath- area to build interstate unity on regional issues. BUSINESS DIARY ...... 21 meeting too,” said Ed Wolking ering, which is by invitation only. CALENDAR ...... 24 The gathering, planned for mid-February, is Jr., executive vice president of They are Detroit, the Chicagoland Chamber of CAPITOL BRIEFINGS ...... 7 part of an ongoing effort by Brookings to promote Detroit Regional Chamber, who Commerce, Toledo Regional Chamber of Commerce CLASSIFIED ADS...... 22 a regional economic-development compact of is helping coordinate the con- and the Greater Pittsburgh Chamber of Commerce. DIVIDENDS...... 4 states and to explore policy issues for the region ference. The meeting of chambers is one of several such EARNINGS ...... 4 that will affect next year’s presidential campaign. KEITH CRAIN ...... 8 Wolking “We also want to discuss and conferences Brookings has helped coordinate to Brookings has outlined common economic identify themes and messages advance the Great Lakes Economic Initiative, a set of LETTERS ...... 8 OPINION ...... 8 needs and policy objectives for a 12-state region to address with the 2008 presidential candidates to economic and policy recommendations based on OTHER VOICES ...... 9 dubbed the “Vital Center,” in a report of the same hear from chambers of commerce. Candidates the 2006 report. name it released last year. PEOPLE ...... 15 tend to address the individual states individually, Brookings took part in a similar gathering with RUMBLINGS...... 30 The region includes Michigan, Ohio, Indiana, and many of those states have the same regional See Compact, Page 29 WEEK IN REVIEW ...... 30 DETROIT BUSINESS MAIN 12-03-07 A 4 CDB 11/30/2007 5:24 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS December 3, 2007 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES

test drive Membership American Axle hopes to land $395*

*Restrictions apply, subject to availability, subject to change without notice. ‘me too’ deal with the UAW BY ROBERT SHEREFKIN Dauch. The automakers won ap- Lombard says a recently an- Where everyone wants to ski. CRAIN NEWS SERVICE proval for two-tier wages with low- nounced second buyout program er pay for some new employees. should help. As the Detroit 3 tout the benefits Dauch’s workers are covered by In the past, Dauch worked hard of their new, concessionary UAW a contract with terms inherited to cultivate good ties with the contracts, several supplier CEOs when GM sold its axle, prop shaft union. But any good will he built It’s true, we have been around since 1939, and we are the oldest private ski club in the are eager for “me too” deals with country. Just because we’ve been around a while doesn’t mean we don’t know how to and forging operations. The com- has evaporated because of what have fun. Here’s what we have been up to… the union. pany’s former GM employees earn appears to be a looming plant clo- We doubled our snowmaking capabilities. We purchased a Bombardier Bison with But getting agreement from the wages and benefits of $60 to $65 an sure — or two. Terrain Package and Zaugg 18 ft. Pipe Monster to improve our grooming on the slopes United Auto Workers may be difficult. hour, well above the pay of most In August, American Axle of- and in the parks. We have hired Planet Snow Design, the best in the world, to design and Take Detroit-based American supplier employees. fered buyouts for 650 build our Terrain Park and Superpipe. This is what Planet Snow Design has planned: Axle & Manufacturing Holdings Inc. In contrast, rival workers at its Gear, (NYSE: AXL). axle maker Dana Corp., Axle & Linkage plant • A beginner Terrain Park, including a 14 ft. pipe and rails. American Axle CEO Richard E. based in Toledo, plans A long labor in Buffalo, N.Y. The • Devote an entire run to an advanced Terrain Park with an 18 ft. pipe and rails. Dauch hopes a new UAW contract • A “natural terrain” run. to shed $100 million in company says part of will slash his labor costs. But the annual costs as a result battle could the plant will be union fears plant closings and is Also, we renovated all of our accommodations but you won’t be spending much time there. of its current bank- jeopardize idled. The union says not in a concessionary mood. The ruptcy protection. the plant will be shut- For a limited time, we are offering the Test Drive Membership for just $395 for current contract expires Feb. 25. Detroit 3 sales of production at tered when the cur- the family for the entire ski season. For more information call us toll free at The stakes are huge for Ameri- light trucks and SUVs rent contract expires. 800-752-5510 ext. 327, email us at [email protected] or visit us on the web at: can Axle — and its customers. have tumbled. As a re- the company’s Earlier this year, www.otsegoclub.com. A long labor battle could jeopar- sult, American Axle American Axle said it dize production at the company’s slipped into the red main would idle by year’s Otsego Club…for generations. main customers: General Motors last year for the first end some portion of Corp. and Chrysler L.L.C. GM ac- time. Losses in the customers. its production capaci- counts for 76 percent of American third and fourth quar- ty at that plant and Axle’s revenue, and Chrysler ac- ters left the company with a full- 800-752-5510 other plants supporting midsized, www.otsegoclub.com counts for about 10 percent. year loss of $222.5 million on sales of truck-based SUVs. Gaylord, MI When talks between the union $3.19 billion. Union sources say they think HOTEL & RESORT and American Axle broke down in “The impact was just too great the Buffalo plant’s fate was sealed February 2004, 6,500 UAW workers and the need to finally address la- when the company decided it walked off the job. Parts shortages bor issues too compelling,” said would build axles for the new immediately crimped output at credit analyst Shelly Lombard of Chevrolet Camaro at a new plant three GM truck assembly plants GimmeCredit Inc., of New York. UAW in Mexico. and at the plant that builds the local officials say Dauch has made Fred Dojka, president of Buffa- Hummer H2. his top priority the reduction of la- lo’s Local 424, says the company’s A day later, American Axle and bor costs at the five factories that he U.S. employees are competing the UAW reached a four-year acquired from GM in 1994. against “slave labor” wages agreement. American Axle is back in the abroad. His rhetoric hardly bodes Always Appropriate. Dauch’s current labor-cost dis- black this year because of its em- well for concessionary labor talks. advantage has prompted Ameri- ployee attrition programs. The “We were told,” he says, that the can Axle to tell Wall Street it can- company’s first buyout offer was North American plants “are the Always Appreciated. not make money in North accepted by 1,473 workers. mother ship of the corporation; the America, where it gets 69 percent American Axle’s stock price best quality and workforce. But of its revenues. Canada, Mexico closed at $23.12 on Friday. when push comes to shove, look and South America account for 27 American Axle says its U.S. op- who is being closed.” FOR STAFF FOR COLLEAGUES FOR CLIENTS percent. All other markets make erations are still not profitable. From Automotive News up the rest. American Axle spokeswoman Renee Rogers says the company is Make a really smart business decision right now working toward a more competi- STREET TALK and simplify your life at the same time. Give gift tive cost structure but declined to THIS WEEK’S STOCK TOTALS: 42 GAINERS, 26 LOSERS, 7 UNCHANGED discuss ongoing labor negotiations. Crain's Detroit Business The UAW’s concession to the 11/30 11/23 PERCENT subscriptions to , the CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE Detroit 3 must look promising to perfect gift for the business professionals 1. General Motors Corp. $29.83 $27.16 9.83 2. Clarkston Financial Corp. 10.55 9.70 8.76 in your life. 3. Rofin-Sinar Technologies Inc. 91.04 84.85 7.30 4. Comerica Inc. 45.78 43.09 6.24 5. Pulte Homes Inc. 10.22 9.63 6.13 EARNINGS 6. Borders Group Inc. 12.51 11.80 6.02 7. ITC Holdings Corp. 51.04 48.15 6.00 Give Crain’s $ * Borders Group Inc. NYSE: BGP 8. Community Central Bank Corp. 7.40 7.02 5.41 for only 59 3rd Quarter Nov. 3 2007 2006 9. Amerigon Inc. 18.28 17.40 5.06 Revenue ...... $813,600,000 $771,000,000 10. Ford Motor Co. 7.51 7.19 4.45 A savings of $72.95 off the newsstand rate. †Net income...... ($161,100,000)($39,100,000) Earnings per share ...... ($2.74) ($.64) 11/30 11/28 PERCENT 9 months CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE Revenue ...... $2,450,200,000 $2,329,200,000 1. TRW Automotive Holdings Corp. $22.45 $25.07 -10.45 †Net income...... ($222,100,000)($77,700,000) 2. Perceptron Inc. 11.34 12.63 -10.21 All additional $ * Earnings per share ...... ($3.78) ($1.28) 3. Federal Screw Works 11.00 12.00 -8.33 gifts are just 39 †- Borders third-quarter loss included a one-time 4. Valassis Communications Inc. 12.33 13.35 -7.64 charge of $116.5 million related to the sale of the A whopping $92.95 off the newsstand rate. company’s stores in the United Kingdom and Ireland. 5. Dearborn Bancorp Inc. 10.03 10.75 -6.70 6. Michigan Heritage Bancorp Inc. 7.15 7.60 -5.92 7. Noble International Ltd. 16.32 17.31 -5.72 DIVIDEND 8. Agree Realty Corp. 30.05 31.80 -5.50 9. Kelly Services Inc. 19.05 19.95 -4.51 Simply call us at 1-888-909-9111 10. Saga Communications Inc. 6.83 7.08 -3.53 Company Amount Payable Record to order your gift subscriptions today. Mention keycode 37GFTAD. date date Source: Bloomberg News. From a list of publicly owned companies with headquarters 2008 2007 in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading Community Central Bank...... 06 01-02 12-03 at less than $5 are not included. *OFFER VALID WITHIN MI ONLY. ALL NON-MI SUBSCRIPTIONS $79. ALL FOREIGN SUBSCRIPTIONS $127. DBpageAD.qxd 11/8/2007 12:32 PM Page 1

Wayne State University School of Social Work Making a difference through scholarship, research and service

PhD Anthony King, PhD Poco Kernsmith, Eileen Trzcinski, PhD Clinical Associate Professor Assistant Professor Professor Anna Maria Santiago Arlene Weisz, PhD PhD, Professor Researches the impact of Associate Professor An internationally known scholar community-based offender on topics of family and medical Studies the impact of housing, rehabilitation and re-entry Their research focuses on leave, family economic policy and social welfare and urban programs on offender recidivism domestic and dating violence effects of maternal employment development policies on families and successful community across the spectrum of youth, on child and adolescent and communities. reintegration. partners and families. development.

Faith Hopp, PhD Bart Miles, PhD Assistant Professor Antonio González- Assistant Professor Cheryl Waites, PhD Prendes, PhD Deborah Jozefowicz- Associate Dean Assistant Professor Simbeni, PhD Assistant Professor Both were selected as Hartford Research examines cognitive- Geriatric Social Work Faculty behavioral approaches to These researchers use mixed Scholars; their research focus mental health and addictions methods to study homeless youth is the aging population and treatment, with an emphasis on and issues related to the transition health. cultural dimensions of anger. to adulthood.

The Wayne State University School of Social Work conducts research that generates and disseminates knowledge to improve the lives of disadvantaged individuals, families and communities. Our faculty members conduct studies addressing some of the most challenging problems confronting areas from Detroit to sub-Saharan Africa on topics such as poverty, human rights, mental illness, criminal recidivism, stress and trauma, domestic violence and underachievement in school. We believe that when equipped with knowledge informed through research and practice, social workers are effectively positioned to ensure the well-being of individuals and communities. I am pleased to introduce these members of our outstanding faculty whose research and leadership are making a real difference in the lives of people in Detroit and around the world.

Phyllis I. Vroom, PhD Dean

wayne.edu DETROIT BUSINESS MAIN 12-03-07 A 6 CDB 11/30/2007 5:32 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS December 3, 2007

LOOKING FOR NOMINEES Marian Ilitch: ‘We get the beat of Detroit’ Do you know a 20-something who is someone to watch? Crain’s is looking for young professionals who are BY DANIEL DUGGAN arate it. We’ve been together a long time, making their mark in the region. We will publish our CRAIN’S DETROIT BUSINESS Mike and I, so we can take jabs at each 2008 class of 20 in their 20s in the March 31 other. I tell him I’ll leave baseball alone issue. Last week, MotorCity Casino began a as long as they don’t cross Woodward Unlike some other award new chapter with the opening of its 400- looking for money. in their programs, these entrepreneurs room hotel. The hotel opening has been delayed by al- and creative thinkers may not have As part of a $300 million improvement most a month. You’ve been faced with labor made their first million. However,

of the gaming complex, the project adds a Twenty 20s they should be living proof that negotiations, the hiring of a new vice presi- luxury hotel to the MotorCity mix. It in- there is work under way by young dent of hotel operations and a brief state people to counter the region’s brain drain. cludes 41 suites, high- shutdown at the end of September. What’s tech rooms that “re- Visit www.crainsdetroit.com/nominate for our online that been like at the top? form. Nominations must be received by Dec. 24. member” the room The state situation gave me more Questions? Contact Jennette Smith, (313) 446- temperature a cus- stress than anything. It was out of my tomer prefers, and at- 1622, [email protected] with questions about the control. I have to say, if I operated my tention to detail with process and Jennifer Dunn (313) 446-6786, business like that, people wouldn’t come [email protected], with technical questions about comfort — offering a back. But we’re still here, we love our the nomination form. menu of 15 pillows, for state and we hope that it gets itself example. squared away and we can move on. Behind the venture The hotel opening is one announcement of is Marian Ilitch, who Ilitch many. Is the idea to involve the city in the IS YOUR COMPANY CREATIVE? heads Detroit Entertain- ment L.L.C., a distinct corporate venture opening of each component? If so, Crain’s invites you to be part of its Creative Economy Inventory. This first-ever compilation will from Ilitch Holdings Inc., of which she is I’d like to think that, but it’s reality. We make the best of it. Each time we document local companies in vice-chairwoman and her husband, The MotorCity Casino hotel is part of a $300 have something new, we show it off. It’s a the following industries: Mike, is chairman. million improvement plan for the gaming advertising, architecture, lot like decorating a house. When you do During the grand opening, Marian Il- complex, and Marian Ilitch is behind the art/historic preservation, itch shared her thoughts on life at home a little at a time, you appreciate each venture. digital media, design, with two distinct companies, on the de- facet. What good are the chandeliers if you’re engineering, film/video lays of opening the hotel, and her role in In the hotel design, what’s the idea behind not comfortable? production, marketing, media, the casino design. the emphasis on comfort? How will MotorCity make itself different music production and public relations. What is it like for you at home, when you My experience at hotels goes back to than its competitors? have a company that has to stay separate when my kids played hockey. We were We get the beat of Detroit. This tells The inventory will be used to market the region’s creative from your husband’s? lucky they had sheets on the beds. I don’t you where we’re coming from. We all forget those days. So now, one of the economy and will be available It’s not difficult, it really isn’t. I don’t work here, live here. We’re all from here, on a new Web site for do any of the baseball stuff, it’s his bag, most exciting parts is picking the bed most of us. We like to feel we know our creatives to be launched by it’s over there. I go to the ball games, but linens. It sounds so minuscule in this customer base. What we like, they like. Crain’s early next year. I don’t go to the press conferences. He whole project, but have you ever stayed Daniel Duggan: (313) 446-0414; For more information and to fill out the survey, go to doesn’t go to mine either. It’s easy to sep- somewhere and not had a good rest? [email protected] www.crainsdetroit.com/creative. FINALLY, YOU HAVE A CHOICE

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December 3, 2007 CRAIN’S DETROIT BUSINESS Page 7 Mixed reviews for Krichbaum appointment

LANSING — Gov. Jen- “In the end, whether sulting firm A.T. Kearney Inc., stems be working with the administra- you run state government with nifer Granholm’s appoint- you are the CEO of a pri- in part from a recommendation tion to explore ways for govern- fewer resources in an effective ment of a COO to help her vate corporation or a pub- earlier this year by a Granholm- ment to become more innovative. govern is drawing mixed manner,” he said. lic corporation, the buck appointed fiscal advisory task Davidoff’s salary will continue reviews. stops with the CEO. It is force. to be paid by Deloitte, Boyd said. Paul Hillegonds, senior the governor who is the The Kearney report looks at She said the firm “has a robust Comings & goings vice president of corporate CEO of the public corpora- steps the state can take to improve practice in advising businesses Jack Minore, former state rep- affairs at DTE Energy Co. tion known as the state of and a former Republican the way it interacts with business. and organizations on innovation.” resentative, has become legislative Michigan.” The Council of Michigan Foundations, Rob Collier, president and CEO speaker of the Michigan director of the Michigan State AFL- Boyd said Krichbaum’s through grants received from sev- of the Council of Michigan Foun- House of Representatives, duties will include focus- CIO. He replaces Ken Fletcher, who CAPITOL BRIEFINGS eral Michigan foundations, paid dations, said Davidoff “brings a lot said Southeast Michigan ing on ways to further re- has been tapped to fill the long-va- nonprofit leader Daniel Amy Lane Kearney $170,000 for its work. of skill and a lot of talent.” David- form and streamline state In addition to Krichbaum’s ap- off’s upcoming work with the cant position of director of govern- Krichbaum brings skills government, including steps that pointment, Granholm announced state, and Krichbaum’s appointment affairs at the Michigan Nurses to the COO job that will help will result from a new study under last week that Mark Davidoff, a ment as COO, are both important Association. Granholm move forward her agen- review by the governor’s office. partner with Deloitte Financial Advi- steps, Collier said. Amy Lane: (517) 371-5355, da in her remaining three years in The report, by management con- office. sory Services L.L.P. in Detroit, would “Everyone’s looking at, how do [email protected] Hillegonds said Krichbaum, who is currently president and ©2007 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved. For a limited time only. Customer must sign Toshiba Financial Services Customer Acceptance form. Toshiba is not responsible CEO of the Michigan Roundtable for for inventory availability, delays in lease approval or other delays. Toshiba reserves the right to cancel or modify promotion without prior notice. This Promotion may NOT be combined with any other TFS Promotion. Diversity & Inclusion, has had to reinvent that organization, both in governance and financially. The Detroit-based organization works with business, university and government clients to eliminate dis- crimination and racism, and was once the Southeast Michigan chapter of the National Conference of Christians & Jews. Krichbaum has lessened the organization’s reliance on sponsorships, grants and contributions and made it “much more entrepreneurial,” with fees charged for many services, said Hillegonds, who serves on the roundtable’s board. In addition, Krichbaum’s “experience and personality are about bringing diverse people together to solve problems. And given the climate in Lansing, those are strengths that are not only necessary but are probably more than half the battle,” Hillegonds said. “If he has the resources available to him, I think he’ll be able to advance some of the ideas beyond paper, to execution.” Krichbaum declined a request Friday for an interview, and Liz Boyd, Granholm’s press secretary, said he would not be available to talk to reporters until he starts his new job on Dec. 10. He’ll serve as both COO and chief of staff to Granholm. In the latter position, he replaces Mary Lannoye, who left the administration in October. Krichbaum will be paid $136,000, as was Lannoye, according to Granholm’s office. Boyd said Granholm wanted someone as COO “who is very strong, had a world of experience, who knew the business community, and also is a proven leader.” He’ll oversee the operations of the executive office and the enactment of Granholm’s economic plan and FINANCE & IT priorities throughout state depart- ments. BECOME HEROES WITH ZERO But Rich Studley, executive vice president at the Michigan Chamber First, two opposing powers, finance and IT, were united with the perfect balance of Commerce, said it’s not clear why the position is necessary or 0% FINANCING of price and technology. Now they’re combining forces to bring good to the entire how a COO will make a difference. THROUGH TOSHIBA FINANCIAL office—with 0% financing through Toshiba Financial Services on 36-month “Our view is that this idea of a chief operating officer might be SERVICES ON ALL TOSHIBA MFPs equipment leases. Award-winning color, easy-to-use technology and now 0% somewhat helpful in the first year financing. No cape required. of a new administration, but Jen- nifer Granholm has now been governor for five years, and is well into her second term. And the challenges and the opportunities facing our state are basically the same, the challenges related to state government and our economy remain unchanged,” Studley said. TO LEARN MORE, CALL 877-338-8227 DETROIT BUSINESS MAIN 12-03-07 A 8 CDB 11/30/2007 3:41 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS December 3, 2007 OPINION Gov’s COO pick shows poor judgment he just doesn’t get it. Tapping an experienced nonprofit leader from De- S troit to be her COO will not solve the massive problems Gov. Jennifer Granholm has created for herself. Dan Krichbaum is a respected leader known for being a consensus builder. But when business executives begged the governor to appoint an experienced COO to help manage state government, Krichbaum is not who they had in mind. They wanted a turnaround specialist, or a corporate leader skilled in the political process. Someone who could help Granholm cut to the chase. Instead, she appointed someone whose experience is in building consensus and diversity. Those are good skills, but the state is in crisis. It needs action. Granholm needs someone to serve the same purpose Mike Duggan, now CEO of the Detroit Medical Center, served for the late County Executive Ed McNamara. Duggan was the desig- nated person to deliver bad news and execute unpopular decisions. That left McNamara free to be the consensus-builder “good guy.” And, whether or not you supported the McNamara administration, mostly the system worked. Again and again, Granholm has appointed study committees LETTERS and disregarded what they recommended because it would take tough decisions that would step on special-interest toes. Her approach to the state budget crisis has been one largely of telling the Legislature: You guys figure it out and bring me When a cut isn’t really a cut something I’d like. If not, back to the drawing board. Editor: skills, he took advantage of a gen- Crain’s Detroit Business Krichbaum has virtually no experience relevant to her I respect State Rep. Steve Toboc- erous state program that paid half goal of having him lead the charge to implement her economic welcomes letters to the editor. man for all the good work he does, All letters will be considered for the cost of truck-driving school. plan or streamline government. but his Nov. 19 letter, “Service tax: publication, provided they are The only effect of this well-inten- This latest action screams to business: This governor is in A lawmaker’s view,” explains signed and do not defame tioned program was to flood the over her head. some of the problem in Lansing. individuals or organizations. state with rookie drivers, causing First, he says that the general Letters may be edited for length trucking companies to demand six budget has been cut by 40 percent and clarity. months to a year experience just to in real terms since 2000. Write: Editor, Crain’s Detroit weed out the stack of applications. Development compact is wise The phrase “general fund” Business, 1155 Gratiot Ave., So he recently moved to Akron, caught my eye because anyone fa- Detroit, MI 48207-2997 where an entrepreneur had start- miliar with municipal accounting ed a company rehabilitating com- As Chad Halcom reports on Page 3, in February the Detroit E-mail: [email protected] Regional Chamber and the Brookings Institution will host a knows that there are an almost infi- mercial properties and needed nite number of accounts with hardworking bodies. meeting of up to 40 chambers of commerce from a 12-state re- which one can play a shell game. Second, Rep. Tobocman wants to In its goal to revive Michigan, gion. The purpose: to promote a regional economic-develop- Sure enough, according to pages E- ensure that Michigan retains “po- the complete focus of the Legisla- ment compact and discuss ways to push policy goals with pres- 31 and E-32 of the Executive Budget lice, fire, education, health care ture should be on creating a fertile idential candidates. for Fiscal Year 2007 as posted on the and universities that will lead our soil for the entrepreneurial spirit. economy into the 21st century.” The meeting is one of several such conferences Brookings state’s Web site, general fund ex- Everything else will follow. penditures have dropped in both But if history is a guide from 19th Mark Maisonneuve has helped coordinate to advance the Great Lakes Economic nominal and real terms from $9.4 century America to modern-day Eastpointe Initiative, a set of economic and policy recommendations billion in 2000 to a recommended Shanghai, those things follow, not based on a 2006 report Crain’s wrote about in July. $9.25 billion in 2007. However, gross lead, the entrepreneurs that create These are also creative Building coalitions is a painstaking and sometimes frus- expenditures have risen from $34.5 the opportunities, jobs, and tax Editor: trating process. This one seems to have broad commitments billion to $42.6 billion, or 3.04 per- revenue. What an exciting time in Michi- cent per year. That seems pretty flat My oldest son is an example. A gan! and an important champion in Brookings. relative to overall inflation, but it is high school graduate with no fur- We continue to hope for its success. definitely not a cut. ther education and no advanced See Letters, Page 9

KEITH CRAIN: Is it all just a lot of smoke and mirrors? I happened upon a disturbing will be a significant in- looks like that might not I don’t know how long it’s going tic thing. There is so much blame to piece of information last week that I crease in taxes. be the case after all. to take for the stark facts to emerge. go around that our politicians are guess was generally known by Is all this a bit screwy? And then we wonder Unless they want to chase everyone going to have to change or they will everyone except me. It would appear that why we can’t trust gov- out of state, elected officials need to be replaced in the next election. The state of Michigan budget for our government in Lans- ernment to tell us what’s realize they need to cut spending You can’t help but wonder what next year is going to increase by ing simply doesn’t listen really going on. and lower taxes. Our state economy it will take to send a strong mes- $600 million. to the residents of Michi- I’ll be the first to ad- is not growing, and families all over sage to Lansing that we expect flat That’s right, by $600 million. gan who have been quite mit that I don’t know the state are cutting expenses or or decreasing budgets for the fore- When Michigan companies are definite in their de- what’s really going on in packing up for greener pastures, seeable future. laying off thousands of employees, mands for cost-cutting, Lansing, but it’s also leaving our tax base even lower. I would be unhappy to learn the when families are cutting back with not increases. true that everyone I talk I don’t know what it’s going to budget had increased by $600, but their own expenses, our state gov- And somewhere I’ve to in our Capitol gives take for politicians to understand the idea that is has increased by ernment is increasing its spending been hearing legislators me a different answer. that we’re not going to let them live $600 million seems unbelievable. by a considerable amount. talking about how the budget has As the adage has it, figures don’t in a different world in Lansing. If it’s true, government is out of All that is going on while there been cut to the bare bones. Well, it lie, but liars can figure. It’s not a Republican or Democra- control. DETROIT BUSINESS MAIN 12-03-07 A 25 CDB 11/30/2007 5:28 PM Page 1

December 3, 2007 CRAIN’S DETROIT BUSINESS Page 25 Gallup’s training aims to make Haven a better place to work

BY SHERRI BEGIN CRAIN’S DETROIT BUSINESS “I think this can give Haven a way to Haven, the Pontiac-based nonprofit shelter, may not be Oakland (become) more productive.” County’s largest employer, but it still hopes to become an employer Randy Beck, Haven boardmember of choice. The domestic and sexual vio- In one year, Haven already has not to and share that with us, (and) lence shelter is a third of the way seen a lot of benefit from the we’ve seen an increase in staff par- through the three-year, “Q12” process, Morrison said. ticipation,” Morrison said. process the Washington, D.C.- “We’ve had several staff who Sherri Begin: (313) 446-1694, based Gallup Organization uses to were on the fence to leave, decide [email protected] help its global clients recruit and retain employees, while building an engaged workforce. The program emphasizes com- munication among peers, supervi- sors and employees; employee recognition at least once every seven days; establishing clear expec- tations for employees; listening to employee opinions; and encourag- ing employee development and friendships. Board member Randy Beck, a regional managing partner of Gallup in Southfield, secured Q12 consultation for Haven free of charge after hearing the nonprofit discussing how it could motivate its employees during a retreat. Haven “had a lot of people who hap is ... had a lot of passion for the mission, but they had no way to measure their effectiveness or employees’ level of engagement towards ... your Michigan-Based partner their goals,” Beck said. The Q12 process “will do that for HAP is more than just a card you carry. HAP is your partner, creating solutions that go them and help them find their most-productive and least-produc- beyond your health care needs.We design affordable health plans with you in mind. tive work groups,” he said. Motivating and engaging employees is a real concern for Health Care Plans Haven, said CEO Beth Morrison. All HAP plans offer: “Part of it is fear that there is a s&LEXIBLEANDCOMPREHENSIVEBENEFITS shrinking number of people enter- s%XTENSIVENETWORKOFTHELEADING s/NLINEHEALTHTOOLS ing the field of social services,” she doctors and hospitals s$ISEASEMANAGEMENT said. s0REVENTIVECARE “We’ve lost some good people. s(EALTHEDUCATIONANDWORKSITEWELLNESS Some have left to go into for-profit s0LUS EMERGENCYCOVERAGEWHEREVERYOUTRAVEL positions — human services, in PPO general, are lower paying than the 7ITHOUR00/ YOUGETTHEFLEXIBILITYTOSEEKCAREFROMPROVIDERSWITHINOROUTSIDEOFTHEPREFERREDNETWORK for-profit, corporate world.” WITHOUTREFERRALS4HISPOPULAR CONVENIENTPLANPROVIDESFREEDOMOFCHOICE ALARGENETWORKOFHOSPITALSAND Morrison estimates Haven has a physicians, emergency coverage wherever you go and preventive services – all at an affordable price. 20 percent annual turnover of its 65 employees spread across its Pontiac shelter, counseling offices New Individual Coverage in Bloomfield Hills and Farming- SOLO offers great individual health coverage. It’s perfect for entrepreneurs, college grads, early retirees or those ton, personal protection order of- BETWEENJOBS 'OONLINEANDTAKEALOOK fice in the Pontiac Circuit Court building and forensic examination SM office in Royal Oak. Value Plans There’s a lot of discussion about Want to save up to 30% off your current health care premiums? Many businesses today are turning to HAP’s impending employee shortages in Value PlansSMFORTHESAVINGS &INDOUTWHATTHOUSANDSOFPEOPLEALREADYKNOWABOUTTHEhVALUEvINTHESE the nonprofit industry, she said. plan designs. The Bridgespan Group’s 2006 report, “The Nonprofit Sector’s Leadership Deficit,” which sur- Medicare Advantage Plans veyed nonprofits with revenue of HAP’s Medicare Advantage plans offer employers and Medicare-eligible individuals solutions with: $250,000 or more, states those orga- s-EDICALANDPRESCRIPTIONDRUGCOVERAGEATANAFFORDABLEPRICE nizations will need to attract at s0REVENTIVECARE least 330,000 senior managers, and possibly as many as 640,000, over s%MERGENCYCOVERAGEWHEREVERYOUTRAVEL the next decade, depending on the s9OURCHOICEOFTHELEADINGDOCTORSANDHOSPITALS degree of consolidation and actual 9OULLENJOYAFFORDABILITYANDPEACEOFMINDATATIMEWHENYOUNEEDITMOST turnover rates. By 2016, the group projects the U.S. nonprofit industry will need almost 80,000 new senior-level managers each year. www.hap.org “I think this can give Haven a way to (become) more productive Alliance Health and Life Insurance Company is a health insurance subsidiary of Health Alliance Plan. PPO is a product of Alliance Health and Life Insurance Company and HAP Preferred, Inc., both are wholly and more efficient — it gives them owned subsidiaries of Health Alliance Plan. Individual health plans (SOLO) are offered through Alliance Health and Life Insurance Company, Inc. Health Alliance Plan and Alliance Health and Life Insurance an opportunity to reduce variation Company each have a Medicare contract with the federal government. in their culture,” Beck said. DETROIT BUSINESS MAIN 12-03-07 A 26 CDB 11/30/2007 6:43 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS December 3, 2007

BY THE NUMBERS: Guardian: Foes push for other building Guardian Building. 1001 Woodward. ■ From Page 3 Square feet: 750,000. Square feet: 290,000. Building price: $14.5 million. Building price: $6 million. from buying 1001 Woodward in- Ficano’s staff Quicken is taking all the spaces in Tenant and building improvements: Tenant and building improvements: stead of the Guardian Building, says the county town? That would cost us a lot of $19.4 million. $25.9 million to $31.1 million. based on an analysis by Detroit- would need to money.” Parking: $17 million for the First Parking: $3.5 million to lease 200 based Taktix Solutions L.L.C. buy the 750- Most of the remaining amount Street Parking Deck. spaces over 20 years or $21 million Some of the figures in the Taktix space parking to be saved comes from the cost of Add-on: $2 million for the Detroit to buy the entire 750 spaces. analysis are in dispute, largely on structure at- bonding. Savings and Loan building. Add-on: Infrastructure needed for the topic of parking. tached to the The county would be leasing the gutted building. Taxes: Must be paid on the 35 Larry Marantette, principal building to en- space in the Guardian Building to percent of the building not used by Taxes: Fully government-occupied with Taktix, said up to 400 spaces sure its parking private companies, so 35 percent of the government, also bonds are building so it’s tax exempt. in an attached parking structure needs, adding more costly for that portion of the the bonds would be at 6.5 percent Pro: Propping up a failed building in can be rented to the owner of 1001 Marantette $21 million to building. a prime downtown location. interest, Marantette said, with the Woodward under terms of the the cost. Pro: Revenue can be gained from rest borrowed at the 5 percent rate Con: Building has been vacant and deed. He said it wouldn’t make “We have hundreds of employ- leasing of office and parking space. will be expensive to bring up to given to government entities. Con: Risky to be a landlord in office standards. Building is not sense to buy the parking structure ees to provide parking for,” said The 1001 Woodward building current real estate market. Parking available for sale yet and could take because it won’t be profitable, Turkia Mullin, assistant county would be fully occupied by the is four blocks away. 18 months to occupy. largely because so much parking executive. “What if rent gets county, so the full amount would Source: Crain’s research is available in downtown Detroit. jacked up by $100 per month when be borrowed at 5 percent. Revenue from the 55 percent-occupied Guardian Building also is an issue. All parties who had access to the revenue figures at the Guardian Building signed a confidentiality agreement and have declined to comment on the figures. Advisers for Ficano and Ware forecast very different figures for potential revenue. Marantette said that by 2011 the Guardian Building will not be making money if current lease rates and occupancy levels continue. Mullin said the county can consolidate more office space in the area to move into the Guardian Building if paying tenants leave. “Those buildings are making a couple million dollars a year right now,” she said. “But this county has over 5,000 employees, most of them working in buildings that are being leased. If we have to, we can move them out of those buildings and into a building we own. That makes a lot of sense.” Debate also hinges on the own- ership of 1001 Woodward. A land contract on 1001 Wood- ward was ordered forfeited by a District Court judge in October after the company that bought it in July 2004 failed to make payments totaling nearly $5.4 million in principal and interest. The company, 1001 Woodward Of- fice L.L.C., is controlled by Warren- NOW THE EASIEST based developer Lorenzo Cava- liere. Cavaliere’s company now has 90 WAY to DEPOSIT CHECKS is days to redeem the property by paying in full to the company set up by the Operating Engineers Local RIGHT FROM YOUR DESK. 324 Pension Trust Fund, which sold the building. If Cavaliere buys the building GET MORE DONE IN LESS TIME WITH REMOTE DEPOSIT. back, it is not clear whether it would be sold to the county. In ad- Announcing the greatest time saver since Internet banking. Now there’s never a rush to get to the dition, the deal could be tied up in court, and it could then require 18 bank before it closes; deposit checks 24/7, right from your desk. And funds deposited by 8 p.m., ET, months to rebuild the interior of are available the next business day. Just scan your checks, validate the totals, then securely transmit the building, which has been gutted, Mullin said. the check images to National City for deposit. To learn more, contact Michael Yue, Healthcare With the county paying rent at 660 W. Randolph, she said, time is 248-729-8463 NationalCity.com/remotedeposit Business Banking Officer, at or visit . short. Details of the savings aside, Commissioner Bernard Parker said the idea of saving $44 million should prompt more investigating. “With that type of savings, the administration owes us more analysis,” he said. BUSINESS BANKING • PERSONAL BANKING • INVESTMENTS • MORTGAGE LOANS Daniel Duggan: (313) 446-0414; [email protected] Robert Ankeny contributed to Member FDIC • ©2007, National City Corporation® this report. DETROIT BUSINESS MAIN 12-03-07 A 27 CDB 11/30/2007 6:40 PM Page 1

December 3, 2007 CRAIN’S DETROIT BUSINESS Page 27 DIA lands largest share of state arts-council grants

BY AMY LANE totaled: ety in Ann Arbor. A full list of 2008 grant recipi- is vital to the organizations. CAPITOL CORRESPONDENT ■ More than $2.7 million to orga- ■ $96,300 to organizations in Ma- ents is at www.michigan.gov/arts. “The value of and need for cultur- nizations in Wayne County. Major comb County. Three grants total- The council received 282 applica- al investment has never been LANSING – Southeast Michigan recipients include the DIA; the De- ing $57,800 went to The Art Center in tions requesting greater,” he said. “State support for arts and cultural organizations troit Symphony Orchestra, $404,000; Mt. Clemens, while other major re- nearly $13 mil- grantees and the public they serve have won nearly $4.2 million in the Edison Institute in Dearborn, cipients were Macomb Community lion in funding. has dropped precipitously from $27 state grants – more than half of the $389,000; and the Michigan Opera College in Mt. Clemens, $17,100; The $7.6 million million in 2001 to $7.66 million to- $7.6 million awarded last week by Theatre in Detroit, $298,800. and the Warren Symphony Society in awarded for fis- day. That jeopardizes the quality of the Michigan Council for Arts and Cul- ■ $748,500 to Oakland County or- Warren, $13,500. cal 2008 is down life of all state residents. tural Affairs. ganizations, including $389,000 to ■ $24,900 in Livingston County, from the fiscal “Culture counts. It spurs attrac- The largest recipient, both in the Detroit Zoological Society in Roy- all to the city of Howell. 2007 award total tion and retention of talent and pri- the region and the state, is the De- al Oak and $98,000 to the Cranbrook The annual state grants support of $10 million, re- vate investment. It creates jobs. It troit Institute of Arts, approved for a Educational Community in Bloom- major Michigan institutions as flecting a reduc- excites student achievement. It $1.1 million grant. In all, the coun- field Hills. well as funding for projects and ac- Ruff tion in legislative gives communities and individuals cil awarded 248 grants, spread ■ $544,700 to Washtenaw County tivities including arts education, appropriation. a stronger sense of self worth.” among 49 counties. organizations, led by a $206,700 capital improvement, plays, ex- In a news release, council chair- Amy Lane: (517) 371-5355, In Southeast Michigan, grants grant to the University Musical Soci- hibits, concerts and performances. man Craig Ruff said state support [email protected]

Developer begins mixed-use project on Ann Arbor parcel

BY DANIEL DUGGAN CRAIN’S DETROIT BUSINESS

Scott Chappelle isn’t scared off by a risky real estate market. Instead, he says, there are underserved markets that other developers are missing: medical office and high-end residential rental. He started construction of a $172 million mixed-use development in Ann Arbor last week on a seven- acre parcel near Broadway and Maiden Lane. The Lower Town development will bring medical offices, retail and apartments to an area near the Uni- versity of Michigan medical campus. “There is really very little supporting retail and medical office available near the medical campus,” said Chappelle, president of Investing in... the East Lansing-based Strathmore Development Co., which is develop- ing the project. “It’s been an un- Southeast Michigan’s future. derserved market.” Plans include 138,000 square feet Detroit Edison is planning more than $600 million in upgrades to Southeast of retail space, 153,000 square feet Michigan’s electrical system. Work has already begun. Once completed, it will of general and medical office space provide improved reliability for years to come. We’ll be: and a 760-car parking structure. Chappelle said the commercial • Repairing or replacing hundreds of transformers, fuses, lightning arresters and portion is 72 percent pre-leased, other pieces of equipment. but he declined to name tenants and cited confidentiality clauses • Trimming thousands of trees to reduce power outages. and tenants’ wishes to make their • Replacing or reconductoring miles of overhead power lines. own announcements. Categorically, he said, the devel- • Inspecting thousands of utility poles to identify and correct potential problems. opment will include two restau- • Rebalancing Southeast Michigan’s electrical system to prevent overloaded rants, medical office users, a finan- electrical circuits. cial institution, a real estate company and a high-end coffee and This is all a part of our ongoing commitment to deliver the energy our pastry shop. customers need, when they need it — today, tomorrow and into the future. The development also will include 185 rental residential units. Given the current market condi- For information on Detroit Edison programs, products and services, tions, Chappelle said, apartments are a smarter play than for-sale call 800.477.4747. condos. “The one market we believe to be underserved is upscale residen- or visit my.dteenergy.com. tial rental,” he said. “These will be the nicest units in the area.” The project has received a $4.5 million Michigan Business Tax credit and a $700,000 grant and $300,000 loan from the Michigan De- partment of Environmental Quality. It The Power of Your Community e=DTE® is expected to be completed in fourth quarter 2009. Daniel Duggan: (313) 446-0414; [email protected] DETROIT BUSINESS MAIN 12-03-07 A 28 CDB 11/30/2007 5:23 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS December 3, 2007 Valassis: Once panned Advo deal is now panning out ■ From Page 1

are Advo products — made sense for Valas- dication for Schultz, a former Deloitte & pressure would come quickly. sis in the long-run, he said, especially be- Touche senior accountant in Detroit before “You get pressure from your investors, cause the coupon business was mired in a VALASSIS moving to Valassis in 1984. board of directors, employees,” he said. price war that killed profits. Ⅲ The combined Valassis-Advo has 15,000 “I certainly feel this last quarter was a lit- “You’re wearing that acquisition; you’re the Those were his arguments. Not many advertisers worldwide, including 96 of the tle bit of vindication for us that this acquisi- one that drove it. At the end of the day, were buying them. top 100 advertisers in the United States, tion did make sense,” Schultz said. “The you’re going to be responsible for results.” “People were attacking Al, and he took the and 7,500 employees covering operations problem with investors, Wall Street these The greatest pressure came from hedge blows. He took a lot of punishment from in- in 22 states and nine countries. About days, for the most part they’re short-term funds, according to Schultz. vestors,” said Ed Atorino, managing director 1,200 employees are in Livonia. oriented. They don’t care a whole lot for “They tended to be pretty aggressive. Not and media analyst for The Benchmark Co. Ⅲ Valassis sued Advo last summer to get buying. We warned it would take 18 months necessarily in a negative way, but encourag- L.L.C., based in New York. He’s followed out of what was then a $1.3 billion deal, for everything to play out after a period of ing us to do what we needed to do to make Valassis since it went public in 1992. claiming that Advo misrepresented its long- adjustment. Some of our investors were not changes quickly,” he said. “I’ve never seen anything like it — a real term financial health. Advo countersued to real excited about that.” Schultz’s nearly 10 years of running Advo enforce the July 2006 agreement, charging grilling by analysts, investors, hedge fund that Valassis’ court action amounted to Valassis’ stock jumped 21 percent on the have been marked by change. Prior to the guys. There are a lot of people who thought, buyer’s remorse. The two companies news of the third-quarter numbers, and has Advo deal, he shepherded changes that in- ‘This guy’s gotta go.’ ” settled Dec. 19, 2006, and the acquisition been hovering at $12 to $13 per share since. cluded rolling out 18 products and services The second-quarter numbers may have was completed March 2. Stability at Valassis is important to its to diversify from the struggling slick Sun- been the nadir, Atorino said. Ⅲ Valassis paid $1.2 billion, or $33.02 a clients. day newspaper inserts the company has “That’s when Al really got tremendous share, for Advo and assumed refinancing of “We were gratified to hear about Valassis’ been known for since George Valassis start- negative pressure from Wall Street and any- $125 million in debt from the company. To recent success. We have enjoyed and look ed the firm in 1970 in Oak Park. one who cared,” he said. “Al really had no finance the deal, Valassis used an $870 forward to continuing our long and mutual- Schultz’s tenure has continued practices defense at that time, but he never wavered.” million senior secured credit facility from a ly beneficial relationship with them,” Caryn started under Brandon that has seen the Behind-the-scenes meetings with jittery variety of lenders, $540 million in senior Manning, vice president of advertising for company recognized for its “best place to notes due in 2015, and cash. and angry institutional investors saw Schultz the Detroit Media Partnership L.P., said in a work” practices by Fortune, Crain’s Detroit skillfully lay out the case for patience, Atori- Ⅲ Valassis filed a lawsuit against rival News statement. The DMP oversees the joint busi- Business, Working Mother and the Michigan America in January in the U.S. District Court no said, buying him time to integrate Advo’s ness and advertising operations of the The Business & Professional Association for the Eastern District of Michigan in . Among business within Valassis’ universe. Detroit, alleging antitrust regulation Detroit News and the Detroit Free Press. DMP the conveniences available at company of- “I don’t think I felt like I was done, but violations related to freestanding-inserts works both with Valassis and News Ameri- fices are a salon, doctor’s office and dry you feel like you’re skating on thin ice at pricing. The case is tentatively set for trial in ca, which together hold the entire market. cleaning. points in time,” Schultz said. February. The idea to buy Advo originated with Next year, which analysts say will better Then came the third quarter. Schultz a decade ago, he said, when current represent the true impact of the Advo deal, If Wall Street was surprised by the Advo cent of Valassis’ business. They used to ac- Domino’s Pizza Inc. CEO David Brandon, who will include new online products, more inte- deal, it may have been equally startled to see count for 95 percent of its profits. declined to comment for this story, was run- gration, a combined sales staff and a new a seismic turnaround in Valassis’ numbers. “(The Advo deal) was really critical for ning Valassis. brand name for Valassis and Advo products, Valassis (NYSE: VCI) reported revenue up us,” Schultz said. “The FSI has been great But a series of management changes at Schultz said. The Advo name will be retired. 144 percent to $607 million during the quar- for us historically; but if you look at the Advo kept the idea on the shelf until Scott “This could be a company that earns a lot of ter that ended Sept. 30. Net income was up price decline, it represents $200 million in Harding took over Advo two years ago. money in the next couple of years,” Atorino 148 percent, from $6.6 million in the quarter lost revenue to our company. The question I “We started to kick around the idea of, said. a year ago to $16.4 million. ask myself today, had we not diversified: ‘Should we put the companies together?’ ” As for Schultz himself, he said he has no Almost all of that is attributable to Advo Where would we be at today?” Schultz said. “My view was, the strategic ra- plans to leave. “It’s my intention to see this business. The coupons, distributed as free- And while a single quarter doesn’t mean tionale always existed. That never changed.” acquisition and integration through.” standing inserts, are now less than 10 per- all is yet well, it does provide a sense of vin- Once the deal went public, Schultz knew Bill Shea: (313) 446-1626, [email protected]

Lottery: MLB eases up a bit on gambling restrictions ■ From Page 1 tolerant of some forms of legalized gam- Since going on sale April 2, about $10 mil- in place that have to do with casinos,” bling, especially when there is money to be lion worth of the scratch-off Tigers lottery Matwick said, noting casinos are not per- made for teams and American culture has TIGER LOTTERY FACTS tickets have been sold, the state said, which mitted to show such things as playing cards come to increasingly accept casinos and lot- Ⅲ New York-based Scientific Games Inc. is about 10 percent higher than average $5 or slot machines in stadium advertising. teries. spent more than six years persuading tickets sales. Detroit Red Wings and Detroit MotorCity Casino is owned by Marian Il- “Baseball will continue to change the con- Major League Baseball to allow team logos Pistons scratch-offs have also been sold in itch, wife of Tigers owner Mike Ilitch. Base- figuration of its rules as their business prac- on state lottery scratch-off tickets. Other the past. ball forbids its team owners from having a tices shift and change. Their views on things lottery games from Scientific include The lottery reported fiscal year 2007 annu- stake in casinos, but the Ilitches say she was that may have been taboo in the past scratch-offs featuring Chevy, Dodge, Jeep, al sales of $2.3 billion. never an owner, and baseball agrees — a po- Lincoln, NASCAR, NBA, NHL, “American change,” said Maury Brown, president of Each team receives a cut of the money that sition with its share of critics, including ex- Idol,” Hershey’s and TV Guide. Portland, Ore.-based Business of Sports Net- Scientific Games paid MLB for the rights to Commissioner Fay Vincent. Ⅲ Point-of-sale and broadcast advertising the team logos. Neither MLB nor Scientific work, which includes a Web site devoted to for the Detroit Tigers instant game was Mike Dietz, president and director of Dietz the business side of baseball. “There’s defi- done by Troy-based ad agency Simons Games would say how much the deal is Trott Sports & Entertainment in Bingham nitely a softening of (prohibitions against le- Michelson Zieve Inc., which has done lottery worth, but it’s believed to be in the millions of Farms, spent 17 years with Ilitch Holdings Inc., galized gambling) in baseball.” work since 2005. dollars. Teams also got money from local which includes the Tigers and Red Wings. He New York-based lottery ticket maker Scien- marketing Scientific Games did in each mar- believes money from legal gambling is a nat- tific Games Inc. spent more than six years try- ket, Saferin said. ural source of revenue for sports leagues. ball Association and National Hockey Association ing to persuade baseball to sign a deal to allow Baseball reached a record $6 billion in rev- already had deals with Scientific Games. Susan Goodenow, Major team logos on state lottery scratch-offs, said enue last year, thanks in part to gambling-re- “The league decided this is a legitimate League Baseball’s vice Steve Saferin, vice president and president of lated advertising and sponsorships. way for teams to generate incremental rev- president of business pub- properties. The company has licensing deals “Everything costs more — to field a team, enue. It got easier the past three years be- lic relations, declined to with Ford Motor Co., Chrysler L.L.C. and a vari- to give fans what they want. There are a lot cause a lot of other people had embraced the comment on the lottery ety of popular culture icons such as the TV of bills to pay and a lot of reasons to be open- lottery category, including sports. It was dif- tickets. show “American Idol.” Rob Matwick, Tigers minded about new sources of revenue,” he ficult. They’ve come to the realization that “Lotteries now are in all but seven states vice president of commu- said. There’s only so many (sponsors) and so their position needs to be more finely tuned. and are viewed by a lot of people as a legiti- nications, said the team many are cutting back.” The real problem is sports betting. This is mate way to raise money for good causes,” has had an advertising re- So what does the future hold for baseball not sports betting.” Matwick he said. lationship with the lottery for several years, and legalized gambling? Commissioner Bud Selig wanted a unani- Finally, in 2006 the team owners unani- but the scratch-off promotion was through Business of Sports Network’s Brown mously approved a five-year deal. mous vote from the owners to OK the lottery Major League Baseball. thinks it will be driven by profits. The commissioner’s office and the team tickets deal, Saferin said. The approval from A veteran of more than 20 years in baseball, “Are we going to see video poker at the owners’ primary concern was the question owners was also to change MLB’s bylaws Matwick said he’s seen a shift in attitude ball park? I don’t know. In 20 years, it would- of permitting any form of gambling in con- that forbid team logos on lottery tickets. about some forms of gambling. n’t surprise me,” he said. “Baseball has got- nection with the game, Saferin said. The Scientific Games rolled out the MLB tick- “From an advertising and sponsorship ten wise and smart about how to extract rev- memory of Pete Rose’s lifetime banishment ets last year with a Boston Red Sox instant standpoint, it’s less restrictive than it used enue out of things other than baseball. It’s a in 1989 for betting on games while managing game. This year, 22 teams participated and to be,” he said. MotorCity Casino and MGM much more sophisticated league.” the Cincinnati Reds is still very much alive. Scientific Games printed about 175 million Grand Casino each advertise at Comerica And perhaps another sign of shifting atti- “A scratch-off lottery ticket is about as far tickets since games began. Park. That’s allowed because neither offers tudes: Baseball’s 2008 winter meeting will be from betting on teams as you could get,” The Tigers-themed scratch-off tickets were sports wagering. held in Las Vegas. Saferin said, noting that the National Basket- a success this year, lottery officials said. “There are still prohibitions that are still Bill Shea: (313) 446-1626, [email protected] DETROIT BUSINESS MAIN 12-03-07 A 29 CDB 11/30/2007 5:27 PM Page 1

December 3, 2007 CRAIN’S DETROIT BUSINESS Page 29 Energy: Hearings near in House; Blues plan changes www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] plant to begin operating in 2015. to obtain at least 10 percent of their these agreements: They are with other sources of supply. ASSOCIATE PUBLISHER Christopher Crain, (313) 446-1645 or [email protected] “We have to start now … with electricity from renewable sources facilities that are sited in locations The coalition’s Waymire said EXECUTIVE EDITOR Cindy Goodaker, (313) 446- optimism and hope that the Legis- by 2016. Providers unable to meet that rely on a competitive market new renewable power should be 0460 or [email protected] lature will act,” Holyfield said. the standard could purchase re- model,” he said. MANAGING EDITOR Andy Chapelle, (313) 446- compared to the cost of a new coal- 0402 or [email protected] DTE Energy is working on a fed- newable energy credits from other But Boyd said that “renewable fired plant, as Michigan moves ASSISTANT MANAGING EDITOR/FOCUS Jennette eral license application to construct Michigan electricity providers or portfolio standards have proven to ahead with power sources. Smith, (313) 446-1622 or [email protected] BUSINESS LIVES EDITOR Michelle Darwish, (313) and operate what could be a $3 bil- renewable energy suppliers. work around the nation, in every “Let’s let competition decide 446-1621 or [email protected] lion, 1,500-megawatt nuclear plant. More than two dozen states have kind of regulated and deregulated who fulfills Michigan’s future elec- COPY DESK CHIEF Gary Piatek, (313) 446-0357 Lorie Kessler, director of external enacted an RPS, and in Michigan environment. The governor’s ob- or [email protected] tric needs,” he said. GRAPHICS EDITOR Nancy Clark, (313) 446-1608 communications, said the company there’s support among business and jective is to assure that Michigan’s Some, though, say coal plants or [email protected] hopes to file the application with environmental communities for a energy producers provide the most shouldn’t be any immediate part of COPY EDITOR Vic Doucette, (313) 446-0410 the Nuclear Regulatory Commission in renewable standard. But there’s dis- reliable, cost-effective and sustain- or [email protected] Michigan’s energy solution. A DATA EDITOR Anne Marks, (313) 446-0418 or the fourth quarter of 2008. agreement over the amount that able power that provides long- coalition of environmental inter- [email protected] Gov. Jennifer Granholm wants should be required and if other en- term energy security.” WEB GENERAL MANAGER Alan Baker, (313) 446- ests, called Clean Energy Now, last 0416 or [email protected] the Legislature to pass a standard ergy measures, like changes to Accavitti said changes to the week launched a campaign to halt WEB EDITOR Kevin Hill, (313) 446-0473 or by year’s end that would require Michigan’s 2000 electric-choice law, choice law, Public Act 141, are new coal-fired power plants. [email protected] Michigan utilities and alternate should accompany an RPS. needed not just to give utilities the WEB DESIGNER/PRODUCER Ai-Ting Huang, The coalition said the state (313) 446-0403, [email protected] suppliers to obtain a certain per- Terry Harvill, vice president customer certainty they need to should issue no permits for coal EDITORIAL SUPPORT Anita Duncan, (313) 446-0329; Joanne Scharich, (313) 446-0419 centage of their power from renew- and director of retail energy policy build power plants, but also to plants until Michigan puts in place able sources. for Constellation Energy Resources build renewable projects, such as NEWSROOM (313) 446-0329, FAX (313) 446- programs to reduce statewide en- 1687 TIP LINE (313) 446-6766 Granholm, who is working to Inc., is among those urging the con- wind farms. ergy consumption by at least 1 per- REPORTERS build the alternative-energy indus- tinuation of electric choice. Con- “That’s why the 141 changes go cent a year, enacts an RPS requir- Brent Snavely, senior reporter: Covers auto try in Michigan, sees a renewable stellation Energy Resources is a hand-in-hand with the renewable suppliers, steel and restaurants. (313) 446-0405 ing 20 percent of renewables by or [email protected]. portfolio standard, or RPS, as an es- unit of Baltimore-based Constella- portfolio standard,” he said. 2020, and takes other environmen- Robert Ankeny: Covers the city of Detroit, Wayne sential first step to attracting that tion Energy Group Inc., whose busi- DTE Energy, for example, also is County government, and law. (313) 446-0404 or tally friendly steps. [email protected]. industry’s jobs and investment. ness lines include alternative-elec- laying groundwork for a 30,000-plus Sherri Begin: Covers nonprofits and education. Michigan utilities agree that re- (313) 446-1694 or [email protected] “Companies that are involved in tricity supply. acre wind development that could Andrew Dietderich: Covers health care, this type of investment are going In a letter sent last week to provide power to its Southeast newable resources, energy-effi- transportation, international business and ciency improvements and new biotech. (313) 446-0315 or to want to see a commitment from Granholm, Harvill said it would be Michigan customers and cost an es- [email protected]. technologies are important parts Daniel Duggan: Covers real estate and hospitality. states that there truly is a mar- more difficult for Michigan to timated $1.2 billion to $1.5 billion. (313) 446-0414 or [email protected] ket,” said Liz Boyd, Granholm’s meet renewable and alternative- Accavitti and others say electric of a comprehensive energy plan, Chad Halcom: Covers services, environment and but say there will still be a need for Oakland and Macomb counties. (313) 446-6796 press secretary. “Setting an ag- energy goals if the state retreated choice is a failed experiment that or [email protected]. additional plants. Sheena Harrison: Covers small business, retail gressive RPS sends a signal to from competition fostered by the benefits few business customers and nonautomotive manufacturing. (313) 446- those who are making investments electric-choice law. and no residential customers. Accavitti said the energy-bill 0325 or [email protected]. package is likely to include mea- Tom Henderson: Covers banking, finance and and creating jobs that there will be He said suppliers that compete Choice advocates argue that the technology. (313) 446-0337 or a market in this state, and that we with the incumbent utilities are 2000 law has helped hold down sures dealing with efficiency, [email protected]. Bill Shea: Covers media, advertising and as a state are committed to renew- leading forces in the development electricity rates, spurred indepen- changes in customer choice, a re- marketing, entertainment, the business of sports, view process to establish the need and Livingston and Washtenaw counties. (313) able energy. of renewable-energy resources. dent power producers to develop 446-1626 or [email protected] “We think it’s doable to have Constellation has a number of new plants and saved customers for each new power source, and LANSING BUREAU this done by the end of the year. changes in Michigan’s utility-rate Amy Lane: Covers business issues at the Capitol, agreements with developers of re- millions of dollars. telecommunications and utilities. (517) 371- Certainly that would be our goal, newable-energy operations across The Customer Choice Coalition structure in which commercial 5355, FAX (517) 371-2492, [email protected]. or because time is of the essence.” the country, including wind, solar, is seeking passage of Senate Bills and industrial customers pay 115 W. Allegan, Suite 220, Lansing 48933. A renewable portfolio standard biomass, geothermal and landfill 426-428, which are designed to en- higher rates to subsidize residen- ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) is among the bills Accavitti plans gas, Harvill said. courage more residential partici- tial customers. 446-6032 or [email protected] to address. The RPS bill is expect- “However, there is one common pation and set up a process for bid- Amy Lane: (517) 371-5355, SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ed to call for electricity providers attribute associated with all of ding on new power plants and [email protected] ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, Cathy Ross, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 CLASSIFIED MANAGER Melissa McKay, (313) 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Greg Compact: Meeting mulled GlobalHue: Evangelista, 313-446-1655 Changes MARKETING DIRECTOR Michelle Minor ■ From Page 3 EVENTS MANAGER Nicole Wiedling MARKETING ASSISTANT Jennifer Dunn MARKETING ARTIST Sylvia Kolaski venture-capital firms about invest- leased a follow-up report for Brook- put 25 jobs in Southfield SALES SUPPORT Suzanne Janik, Andrea ing in the Midwest a few weeks ago ings in September evaluating the Beckham, YahNica Crawford at the University of Michigan, and a CIRCULATION Candice Yopp, Manager. benefits of a $20 billion-plus state- ■ From Page 3 PRODUCTION MANAGER Wendy Kobylarz panel convened by Brookings is federal plan to clean up the Great ic and Asian consumers in the U.S. by 2011. PRODUCTION SUPERVISOR Larry Williams, working to draft a business plan to Lakes. Coalitions like the one Bar- (313) 446-0301 Marilyn Barnett, president and CEO of Southfield-based Mars Ad- SUBSCRIPTIONS (313) 446-0450, enhance regional venture capital in- nett is advocating could help lobby vertising Co. Inc., said she noticed the trend of increased advertising (888) 909-9111 vestment for release in April. for the necessary government fund- TO FIND A DATE A STORY WAS PUBLISHED: aimed at diverse groups about 10 years ago. (313) 446-0367 or e-mail the Crain Information Wolking said venture capital ing for that effort. “It’s a prudent thing to do,” she said. Center at [email protected]. would likely be among the cham- The cleanup of Great Lakes water- African-American work accounts for CRAIN’S DETROIT BUSINESS IS PUBLISHED BY bers’ talking points in February as CRAIN COMMUNICATIONS INC. ways would yield an $80 billion to African- about 46 percent of GlobalHue’s business CHAIRMAN Keith E. Crain well. $100 billion investment return in PRESIDENT Rance Crain Vicki Barnett, former mayor of while the remainder is Asian and other SECRETARY Merrilee Crain terms of tourism, rising land values American groups, Coleman said. GlobalHue Next TREASURER Mary Kay Crain Farmington Hills and immediate and new construction and develop- Executive Vice President/Operations past president of the Michigan Munici- will attempt to tap into multicultural William A. Morrow ment. work youth cultural trends and how they affect Group Vice President/Technology, pal League, has been coordinating ef- Barnett has dubbed her share of Manufacturing, Circulation forts between municipal govern- consumer and corporate behavior. Robert C. Adams the Brookings initiative the “North accounts for The company ranks eighth on Crain’s Vice President/Production & Manufacturing ment organizations in the 12-state Dave Kamis Coast Project” for the common region defined by Brookings. Detroit Business Nov. 19 list of the largest Corporate Director/Circulation freshwater boundaries most of the about 46 Patrick Sheposh Representatives from most of the advertising and marketing firms by 2006 G.D. Crain Jr. Founder (1885-1973) affected states share. states met with Barnett on Nov. 16 revenue with $84 million. Mrs. G.D. Crain Jr. Chairman (1911-1996) “It’s a jobs creation and retention percent of during the National League of Cities Its focus is advertising, media planning EDITORIAL & BUSINESS OFFICES: engine. It’s not just a nice thing to 1155 Gratiot Ave., Detroit MI 48207-2732; (313) conference in New Orleans. Almost GlobalHue’ s and buying, event marketing and public 446-6000 all support a regional compact to co- do for the environment,” Austin relations. Its client list includes Chrysler Cable address: TWX 248-221-5122 AUTNEW DET said. Subscriptions $59 one year, $98 two years. Out operate on issues like transporta- business. L.L.C., Chrysler Financial, Verizon, Wal-Mart, of state, $79 one year, $138 for two years. The 12-state region produces 38 Outside U.S.A., add $48 per year to out-of-state tion, education and venture capital. the U.S. Census Bureau, the U.S. Navy, the In- rate for surface mail. “Nobody’s saying no. Pretty much percent of the nation’s bachelor de- ternal Revenue Service and American Airlines. Reprints: For inquiries call the reprints department at: (800) 494-9051, Ext. 144 , or at everybody is putting their support gree recipients each year, and 37 After the restructuring is complete, GlobalHue will eventually [email protected] behind the concept,” Barnett said. percent of its advanced scientific look for more overseas clients, Coleman said. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the The states’ municipal organiza- and engineering degrees, Austin has “We want to capture more share domestically, but everything is second week in August by Crain Communications said. global these days,” he said. Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. tions will meet again at another con- Periodicals postage paid at Detroit, MI and ference in Washington next March, But he said it is typically a donor The company traces its roots to 2002, when Coleman and Associ- additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, and Barnett hopes to have a draft region for human capital and feder- ates Inc. combined a trio of agencies it had purchased into Global- Circulation Department, P.O. Box 07925, Detroit, MI version of a commitment to join the al transportation dollars to other Hue. 48207-9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2007 by Crain compact initiative ready for the oth- parts of the nation. Today, the company has about 300 employees and additional of- Communications Inc. All rights reserved. Reproduction or use of editorial content in any ers to review at that meeting. Chad Halcom: (313) 446-6796, chal- fices in New York and Los Angeles. manner without permission is strictly prohibited. Austin said economists also re- [email protected] Bill Shea: (313) 446-1626, [email protected] DETROIT BUSINESS MAIN 12-03-07 A 30 CDB 11/30/2007 6:26 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS December 3, 2007 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 26-DEC. 1

Webcast to show kidney one-time partner in the Free Press and The Detroit PrizeLogic to Southfield-based turn- News, to the Detroit RiverFront tumor removal surgery around firm Bahadur, Balan Conservancy to be used for Auto show & Kazerski Ltd., has been the Riverwalk project. A locally produced Web- cast will air this week show- hire 110, open sentenced to 18 months in Lawrence Technological casing Henry Ford Hospital’s prison for his role in a University on Thursday said world-renowned expertise 1980s fraud scheme involv- it will receive a $1 million Southfield ing former clothier and plansVIP car in urology surgery. federal appropriation to Henry Ford’s Vattikuti fashion maven Ilene Moses. build an environmental Urology Institute plans a live U.S. District Judge Patrick chamber for testing vehicle Webcast at 5 p.m. Thursday office Duggan also ordered Kazers- components for the military. of a robotic surgery: kidney ki to pay restitution of Azure Dynamics Corp., shopping fest tumor removal. cottsdale, Ariz.- nearly $15 million to Stan- which moved its headquar- based online promo- dard Federal Bank. he rich and famous The da Vinci robotic par- ters from Toronto to Oak who have a taste for Should Cerberus buy tial nephrectomy (removal S tions company Prize- Dearborn-based Park in October, an- T expensive and exotic of the tumor and only part Logic Inc. said Monday it Amerigon Inc. has named re- nounced Thursday that its cars will be offered a new Detroit? of the kidney) is a minimal- plans to hire 110 employees tired General Motors Corp. hybrid electric powertrain shopping experience at the Take our poll ly invasive procedure that for a sales and marketing Vice Chairman John Devine has successfully completed North American International preserves healthy renal tis- staff based in Southfield. to its board. He is replacing a durability test at a U.S. Auto Show next month. After With most of 2007 now in sue. In September, the Michi- John Clark, who plans to re- bus-testing facility in Al- our rear-view mirror, The Webcast is meant for gan Economic Growth Authori- tire Jan. 1, according to a media day is over and the Crain’s Detroit Business is toona, Pa. Azure’s buses press clears out Jan. 13, more than fans of channels ty awarded a 10-year, $1.9 press release. now will be eligible for fed- casting a backward glance million tax credit for a joint John Fontes, former as- Cobo Center, or at least a at some of the business like Discovery Health; the erally supported purchases venture between South- sistant coach of the Detroit part of it, will be turned stories that generated buzz hospital mailed letters to by public transportation field-based Mars Advertising Lions and brother of former into “The Gallery.” and raised eyebrows this about 25,000 physicians agencies. Co. Inc. and PrizeLogic to head coach Wayne Fontes, Luxury automakers Bent- year. We’d like to hear across the U.S. to make The University of Michi- create 150 jobs. PrizeLogic’s on Tuesday was announced ley Motors, Ferrari, Lamborghi- what you think. them aware of the Webcast, gan School of Art & Design new office is in Mars’ build- as head coach of Team Michi- ni, Maserati, Maybach and Each week, through Dec. Landis said. has received a $1 million 17, we’ll ask a new To watch, go to www. ing at 25200 Telegraph gan, the All American Football Rolls Royce will have design- gift from alumni Susan question. We will publish henryford.com. Road. League team that will begin ers and executives on hand Smucker Wagstaff and Reid at their displays to answer the results Jan. 7. PrizeLogic’s technology play at Ford Field in April. Wagstaff. questions from potential Today’s question: staff will remain in Scotts- Bruce Nyberg, vice BITS & PIECES On Thursday, Troy- customers. There also will Would it be a good or bad dale, but the headquarters chairman of the Detroit- based Delphi Corp. received be food and live music. thing if Cerberus bought the Muhannad Haimour, and client management will based Michigan Roundtable “This unique event was city of Detroit? Why? president and CEO of the move to Southfield. for Diversity & Inclusion, has approval from a U.S. Bank- designed for those individu- To weigh in, go to Haimour Group Inc., has been Former ePrize Inc. princi- been named interim CEO, ruptcy Court judge to sell als who favor high-end, lux- www.crainsdetroit.com/poll. named U.S. representative pal Keith Simmons has been replacing Daniel Krichbaum, its chassis business to a di- ury vehicles and wish to of the Iraqi Awakening named president and man- who was named COO of the vision of Livonia-based have a special preview of The company is hunting Council, a coalition of tribal aging partner. He is among state by Gov. Jennifer TRW Automotive Holdings the elite vehicles on dis- for franchisees in the state leaders in the Anbar investors who bought Granholm. (See Capitol Corp., the Detroit Free Press play,” said Carl Galeana, se- as part of a national expan- province of Iraq. Haimour PrizeLogic earlier this Briefings, Page 7.) A search reported. nior co-chairman of the De- sion. Group is a public-relations year. committee will look for a The Frankel Commercial- The company’s goal is to and consulting firm. permanent CEO. troit show. ization Fund, a venture-capi- About 200 invitations triple its franchise locations The Michigan Minority Kilpatrick supports steps tal fund managed by Univer- have gone out, organizers in the U.S. to 15,000 by 2020. Business Development Council THER NEWS sity of Michigan graduate has named Blue Cross Blue O said. Locally, the company to stop foreclosures students, has made its first Shield of Michigan the 2007 Automation Alley’s Great One company that won’t plans to open 77 restaurants Detroit Mayor Kwame Kil- investment, giving $85,000 Corporation of the Year in Lakes Interactive Marketing be there is Porsche. The in metro Detroit over the patrick said Tuesday he will Health Care. The Detroit- Association, better known as to Ann Arbor-based Arbor sports-car maker pulled out next several years, as well fight Detroit’s foreclosure based company said its GLIMA, has changed its Photonics, a university of the Detroit show this as 30 in Flint and 17 in Lans- crisis after a report re- business with minority sup- name to ConnecTech, and its spinoff with optical-fiber year, saying the show does- ing. leased the same day pro- pliers more than doubled eight regional chapters will technology that has several n’t make economic sense The company says it jected Southeast Michigan from $24 million in 2004 to now offer a standardized potential business uses. because Porsche doesn’t looks for franchisees with a would continue to see $50 million last year. dues structure and range of Arbor Photonics also will sell enough cars here. net worth of $1.5 million sharp losses in economic Easter Seals-Michigan Inc. services to members. A receive $115,000 from Ann and assets of at least output as part of the nation- has created an annual award ninth chapter in Grand Arbor-based RPM Ventures, $750,000. al foreclosure crisis. Dunkin looking for to recognize key supporters, Rapids has elected to sepa- which invests in university In addition, they or their The report ranked South- naming it for inaugural hon- rate from Automation Al- franchisees east Michigan seventh spinoffs and tech firms management team should orees John and Elizabeth Ker- ley and operate under the among the 361 metropolitan geared toward Midwest Canton, Mass.-based have restaurant or food-ser- sten. The Kerstens have name AimWest. areas with the largest loss of customers. Dunkin Brands Inc. believes vice experience. helped to raise nearly $9 mil- gross metropolitan product, New York City-based Gov. Jennifer there are market share op- Dunkin also looks for lion for Easter Seals over the and said the region is ex- hedge fund Pershing Square Granholm on Tuesday con- portunities to be found by franchisees willing to open past 20 years. John Kersten pected to have lost $3.2 bil- Capital Management L.P. now cluded a two-day California filling Michigan coffee and operate a minimum of is president and owner of lion in GMP growth by 2008. owns 17.1 percent of Borders economic-development mis- cups. five restaurants. Century 21 Town & Country. Kilpatrick said he would Group Inc.’s common stock, sion in which she pitched support a moratorium on up from 11.7 percent, ac- Michigan as an investment foreclosures in Michigan as cording to a Nov. 23 U.S. Se- choice for venture capital, he starts a plan to meet curities and Exchange Com- alternative energy, and oth- mission filing. with members of Wall er sectors. Our new Web project will showcase the creatives Street firms to focus on The 2008 North Ameri- loan modification and re- can International Auto Show Creativity abounds in Detroit. If sector. If you haven’t seen the sur- structuring. But he said the has added Canadian pop- OBITUARIES you need proof, you just have to vey or want to learn more about first step is to change the rock band Barenaked Ladies Roger Smith, former peek at the rapid-fire video mon- which industries we are targeting, perception that the crisis to its Jan. 18 Charity Pre- CEO of General Motors Corp., tages that were shown at the first- go to www.crainsdetroit.com/cre- affects only low-income view lineup at Cobo Center. died after ever D Show awards. ative. There you can also find more families. Tickets are $400. a brief ill- As Bob Ankeny writes on Page news about the effort, an audio clip Wixom-based Rockwell ness Nov. 23, the D Show was put on by the of Crain’s Publisher Mary Kramer Technologies Inc. (Nasdaq: 29. He Adcraft Club of Detroit’s D Council discussing the project and the text ON THE MOVE RMTI) said Thursday it was 82. and featured the best of the best in of a speech that Detroit Renais- Tom Bender to senior closed a $13 million private Mary advertising and marketing — ei- sance President Doug Rothwell vice president and general placement of its common Ryan, a ther produced in Detroit shops or gave in London last month at the manager of Braintree, shares. commu- for Detroit brands. WEB WORLD Creative Clusters Conference. Mass.-based Greater Media A 26-acre parcel of land nity ac- Interactive, from regional and 300,000-square-foot While creatives can get over- Kevin Hill The inventory will be one piece tivist and shadowed by the struggles of the of a new Web site launching early market manager for the building on the Detroit Riv- wife of Smith manufacturing sector, the D Show proved next year designed to showcase creatives three Greater Media Inc. ra- er once used as a Detroit Free former originality can thrive here. and network them together. dio stations in Detroit. He’ll Press printing plant has Michigan Supreme Court Here at Crain’s, we are working with the Keep checking www.crainsdetroit.com/ remain in the Detroit area. been sold by the Detroit Me- Justice James Ryan, died Detroit Renaissance Foundation to compile creative during the coming weeks as the Kenneth Kazerski of dia Partnership L.P., the joint following a stroke Nov. 3. an inventory of businesses in the creative project moves along. Grosse Pointe Woods, a venture which operates the She was 73. DBpageAD.qxd 11/28/2007 12:52 PM Page 1

Wayne State University School of Medicine Making a difference through research and teaching

Michael Diamond, MD Director of the Division of Reproductive Endocrinology; Kamran S. Moghissi Herbert Smitherman, Professor and Associate MD, MPH, FACP Zhou-Hua Pan, PhD Chair of the Department of Assistant Dean of Community Associate Professor, Obstetrics and Gynecology and Urban Health; Assistant Patricia LoRusso, DO Professor, Hematology Department of Anatomy Co-principal investigator in the Professor of Internal and Oncology and Cell Biology university’s planning for a Medicine Dr. Pan studies the way in which Clinical Translational Science Dr. Smitherman’s research focuses A long-time researcher with speciﬁc proteins found in nerve Award, Dr. Diamond has extensive primarily on health issues related Phase 0 and Phase I Clinical cell membranes function in experience in research study to underrepresented minority Trials, Dr. LoRusso has received transmitting electrochemical design, organization and populations and their access several grants from the National signals. implementation. to care. Institutes of Health.

Sonia Hassan, MD Director, Center for Advanced Obstetrical Care and Research, Perinatology Ray Bahado-Singh, MD Research Branch; Assistant Associate Chair, Barry Rosen, PhD Professor, Department of Department of Obstetrics Professor and Chair Obstetrics and Gynecology and Gynecology of Biochemistry and Dr. Hassan’s research focuses Dr. Bahado-Singh studies Molecular Biology on the role of the uterine cervix chromosomal and non- Dr. Rosen is an internationally in premature labor, cervical chromosomal adverse respected scientist whose insufficiency and labor at term; pregnancy outcomes and research into arsenic she published the first genome- premature rupture of the detoxification has made him wide evaluation of the uterine placenta. a leader in his field. cervix after term labor.

The Wayne State University School of Medicine continues to be a pioneer in scientific and clinical research that builds upon benchmarks in patient care. Our faculty members participate in worldwide research programs, pushing beyond traditional and accepted boundaries, creating an environment that provides today’s students a uniquely practical medical education. Based on their work, the school maintains a distinguished reputation for scientific study and discovery with proven and tangible health benefits for today’s world — and tomorrow’s. I am pleased to introduce seven of our faculty members whose research is transforming the practice of medicine and the care of patients here and around the world.

Robert M. Mentzer, Jr., MD Dean, School of Medicine and Senior Advisor to the President for Medical Affairs

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Join the Home Team.

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