DETROIT BUSINESS MAIN 04-28-08 A 1 CDB 4/25/2008 6:00 PM Page 1

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www.crainsdetroit.com Vol. 24, No. 17 APRIL 28 – MAY 4, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN State college construction $30M VC funding bill passes House Several big higher-edu- cation construction pro- jects are working their way through the state Legisla- ture for state funding ap- proval. fund coming The state House voted 58- 45 last week to pass a bill designating capital outlay projects statewide, includ- ing 41 projects for Michi- gan’s colleges and univer- sities. The bill now goes to the Senate. to OU Inc. Among the projects de- tailed in the bill are: $36 million for renovation and improvements at the Sci- Growth companies targeted NATHAN SKID/CRAIN’S DETROIT BUSINESS ence Building and the MDEQ’s George Shaffner expects to hear plenty of discussion about jobs and the Computer Information Sci- environment at a hearing on a proposed oil refinery expansion in southwest Detroit. BY TOM HENDERSON orandum of ence Building at University CRAIN’S DETROIT BUSINESS understand- of Michigan-Dearborn; a $15 ing, so con- million renovation to the Venture capitalist Ian Bund, verting that Science Building at Henry founder and chairman of Ann into a contract Ford Community College; a Arbor-based Plymouth Manage- won’t be diffi- $57 million addition and 2 cities, ment Co., has agreed to base his cult,” said modernization to the Pray- new $30 million fund at Oakland Mark Horne, Harrold building at Eastern University’s SmartZone business CEO of Ply- Michigan University; a $180 incubator, OU Inc. mouth Man- The OU Board of Trustees au- million biomedical re- Bund agement. “We search building at Wayne thorized the university to enter should have it State University; a $15 mil- into an agreement with Ply- done in the next few weeks. lion public-safety complex $3 billion mouth Management on April 15. at Schoolcraft College; $61.2 “We’ve signed a lengthy mem- See Fund, Page 24 million for a new human Dearborn, Detroit share plans to health building at Oakland University; and a new biolo- gy building at UM’s Ann improve steel, oil, auto plants by 2010 Arbor campus for $175 mil- lion. Some nonprofits pay their BY CHAD HALCOM “We’ve seen a lot of interest in More than $108 million CRAIN’S DETROIT BUSINESS the jobs that will be generated. is also identified for pro- That seems to be the biggest con- jects at Oakland Community A three-square-mile area in cern in the region,” he said. “At College, Macomb Community southwest Detroit and south Dear- the hearings, you get a more mixed board membersthousands College, Washtenaw Commu- born could see more than $3 billion turnout because of the activist nity College and Wayne Coun- in improvements to industrial presence. Unions will support the BY JONATHAN EPPLEY ty Community College landmarks by the time construc- project for jobs, and the (environ- SPECIAL TO CRAIN’S DETROIT BUSINESS District. tion wraps up in 2009-10. mental groups) seem to be against THE LATEST ON The project requests call Topping the list is Marathon Pe- any refinery expansion.” Most nonprofit organizations ask direc- NONPROFIT PAY for varying state funding, troleum Co. L.L.C.’s Detroit Heavy The Sierra Club has previously tors to serve without compensation. But a ■ but the bill allocates only a Oil Upgrade Project between Fort voiced opposition to the project. Crain’s survey of 2006 tax returns for more Promoting from within can save money, help nominal amount to each Street and Oakwood Boulevard Meanwhile, Dearborn-based Sev- than 200 nonprofits found a number that focus. project for now. If the legis- east of Schaefer Road in southwest erstal North America Inc., a sub- pay them — sometimes thousands of dol- ■ Bonuses are on the lation is passed, each af- Detroit. sidiary of Russian steel giant OAO lars over the course of a year. rise. fected college or university It’s a $1.9 billion proposal to ex- SeverStal, expects to ramp up the It isn’t usual. While none of the board ■ Total compensation would have up to three pand production capacity at last two of its six modernization members for the social service nonprofit for the best-paid execs. years to return to Lansing Michigan’s only oil refinery. The projects totaling more than $1 bil- organizations included in Crain’s com- Focus report begins on and seek funding for up to project will be the subject of a pub- lion in the coming months at the pensation research are paid for board Page 11. 50 percent of the total pro- lic hearing Wednesday by the former Rouge Steel Inc. facilities in services, directors of some foundations, ject cost. Michigan Department of Environmen- southeastern Dearborn. hospitals and a handful of specialized The state has not passed tal Quality at the Kemeny Center Just north of the Severstal site nonprofits are. The Troy-based Kresge capital outlay projects leg- gymnasium in Detroit. along Miller Road in Dearborn, Foundation, for example, paid a total of islation for Michigan’s col- DEQ division manager George state officials say, Ford Motor Co. $365,000 to 12 board members in 2006, leges and universities Shaffner at the Detroit facility said Top-paid: could begin collecting this year on making it the most expensive board Joseph since 2005. he will attend that hearing and ex- a tax credit for converting the for- among the organizations Crain’s re- Swedish, — Chad Halcom pects a fair amount of discussion mer Dearborn Glass Plant into its viewed. Trinity See This Just In, Page 2 about jobs and the environmental Health impact. See Cities, Page 25 See Nonprofits, Page 25

Boat sales, slip rentals MDOT spending $11.5 million down across area, state, to ease traffic congestion, NEWSPAPER Page 3 Page 3 DETROIT BUSINESS MAIN 04-28-08 A 2 CDB 4/25/2008 5:58 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS April 28, 2008

foot building has been leased and the Mexican degree, students can ward the end of the first quarter when they are about to leave the THIS JUST IN the Charter One lease leaves only take about one-third of their re- aboard Navy surface ships. roadway, risk colliding with an- one vacant retail space. quirements at UDM Law School “It’s an extremely lightweight other vehicle during a lane ■ From Page 1 — Daniel Duggan from Spanish-speaking instruc- product with a very strong chas- change, or are in danger of collid- tors, he said. “This is good for De- sis, which is one reason why (the ing with the vehicle ahead. It State VC fund OKs investment troit too, bringing together Navy) liked the design,” said Nan- uses information gathered by UDM to offer joint law degree strengths of our region and defin- cy Block-Tomlinson, vice president video and radar sensors, plus a The board of the Michigan Strate- program with Mexican school ing it as a real international gate- of business development for Rave global positioning system. gic Fund approved on Wednesday way,” Gordon said. Computer. About $25.2 million in funding The University of Detroit Mercy an investment of $10 million by the — Robert Ankeny Discussions are under way on comes from the U.S. Department of School of Law is offering a new state’s 21st Century Investment Fund options to renew or expand the Transportation, with the remain- joint-degree program called The in the Chicago-based Midwest Mez- contract for similar servers ing $7.1 million from the partici- North American Lawyer Multiple RGIS buys British software firm zanine Fund IV L.P. aboard additional Navy vessels, pating companies and public Degree Program to give students It was the first investment Auburn Hills-based RGIS L.L.C. Block-Tomlinson said. agencies. The first phase focused from the fund in a mezzanine an educational background to announced Friday that it has pur- — Chad Halcom on product development and the fund, which loans companies qualify for law practice in the U.S., chased U.K.-based PDSRS, the de- second phase focuses on testing. money to help them grow. Previ- Mexico and Canada, UDM Law veloper of StorPlanner, a soft- — Chad Halcom ous investments from the fund, School Dean Mark Gordon said. ware that helps retailers better Funding approved to develop which has committed up to near- Formal signing of agreements use store space. system to prevent car crashes ly $69 million of its $109 million, between UDM and officials of In- RGIS, founded in 1958, claims Beene joins Crain’s staff had gone to venture capital and stituto Tecnológico y de Estudios Su- to be the largest provider of retail The University of Michigan Trans- Ryan Beene has joined Crain’s private equity companies. periores de Monterrey, a leading and inventory solutions in the portation Research Institute has re- Detroit Business as the reporter Since 1992, Midwest Mezzanine private law school in Mexico, is world, with 40,000 employees in ceived federal funding approval covering auto has invested more than $41 mil- scheduled Tuesday. 400 offices worldwide. for an innovation meant to help suppliers and lion in eight Michigan-based A juris doctor from UDM and a — Tom Henderson prevent car crashes. steel. companies from its funds. licenciado en derecho degree from UM is in the second phase of a Beene, 23, — Tom Henderson Mexico are earned in five years, Rave fulfills Navy contract project to design and test a video- joins Crain’s three in Detroit and two in Mexi- and radar-powered warning and from sister co. Fluency in Spanish is required, Sterling Heights-based Rave prevention system. publication One Kennedy Square filling up Gordon said. UMD Law School al- Computer Association Inc. fulfilled Phase one recently concluded Automotive One of the two remaining retail ready has a joint program with a $500,000 contract for computer and the institute received ap- News, where spaces in the One Kennedy Square University of Windsor School of Law, system servers aboard 61 anti- proval for phase two of the Inte- he was a gradu- building in downtown Detroit has providing students with both the mining surface vessels for the grated Vehicle-Based Safety Sys- Beene ate intern re- been leased to Charter One N.A. U.S. and Canadian (L.L.B.) law de- U.S. Navy. tem. The institute is developing porting breaking news and enter- The bank will move to the grees in three years, “a North The contract, awarded last Oc- and testing the $32.3 million pro- prise stories about suppliers, 5,200-square-foot retail space fac- American Law Degree, a NAFTA tober, was for the company’s gram along with Visteon Corp., manufacturers, dealers, orga- ing Campus Martius from its Trifecta,” Gordon said. The Cana- Rugged 1U Aluminum Short Eaton Corp., Honda R & D Americas nized labor and other topics for space at 1001 Woodward Ave. dian joint program has graduated Depth Server, an ultralight com- Inc., Cognex Corp., International print and the Web. The building at 777 Woodward about 75 students in the past three puter server weighing less than Truck and Engine Corp., Con-way He is a graduate of Michigan Ave. was developed by South- years and now has about 125 en- 15 pounds and using four process- Freight, Battelle and the Michigan State University. field-based Redico. Nearly all the rolled, Gordon said. ing cores with Intel processors. Department of Transportation. He can be reached at (313) 446- office space in the 240,000-square- Even without working toward Deployment was completed to- The system warns drivers 0315 or [email protected]. DETROIT BUSINESS MAIN 04-28-08 A 3 CDB 4/25/2008 6:00 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S More highway messages coming INDEX

structure work for the message signs Taking Stock: Taubman Co. makes gains amid Traffic boards, cameras part of national trend began in early 2007, and the entire slump, expects growth in project is scheduled to finish by the Asia. Page 4. BY BILL SHEA tion’s congestion-busting efforts. The 13 new black, billboard-like end of this year. Crane crews were Detroiter Online: New CRAIN’S DETROIT BUSINESS They’re also part of a national trend units, called dynamic message signs, installing signs on I-94 over the past Detroit chamber Web site toward what’s called intelligent are from Brookings, S.D.-based Dak- few weeks. aims to link area Thirteen massive new electronic transportation systems, which rely tronics Inc., an electronic sign manu- The new signs average about two entrepreneurs. Page 6. message boards sprouting alongside on communication and other tech- facturer that also provided the tem- tons each and are 29 feet wide and 8 No quick fix: National the major highways in metro Detroit nologies to manage traffic and high- porary display screens inside Ford feet tall. They use LED technology to City Bank is faced with more problems than lack are more than springtime compan- way safety instead of, or in conjunc- Field for the recent NCAA basketball display messages, an upgrade over of cash. Page 7. ions to the orange barrel blossoms. tion with, new construction. tournament. the boards currently hung from The permanent boards, along with “You can’t build your way out con- The signs are going up along I-94 overpasses or on posts in the region, 32 new traffic cameras, are part of an gestion,” said Rob Morosi, MDOT’s between Detroit and Port Huron, I-96 which are 15 years old. Some of those $11.5 million project to boost the communications representative for between Detroit and Novi and on I-69 Michigan Department of Transporta- metro Detroit. between Port Huron and Flint. Infra- See Signs, Page 23

Window to the future: Exatec expects to see growth through its polycarbonate auto Lawsuit between windows. Page 20. Blues bills: Senate panel to vote on four controversial bills; Gail Duncan, committee chair may trim provisions. Page 22.

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

AAA Michigan ...... 24 Blue Cross Blue Shield Foundation 25 Crittenton Hospital ...... 15 settled for $1M Dearborn Chamber of Commerce . 25 Detroit Regional Chamber ...... 6 BY NANCY KAFFER Detroiter Online ...... 6 CRAIN’S DETROIT BUSINESS Eight Mile Boulevard Association . . 6 Emerald City Harbor Inc...... 3 The former owner of a now-defunct Ford Exatec L.L.C...... 20 dealership has settled a lawsuit with Ford Mo- Ford Motor Credit ...... 3 tor Credit. Henry Ford Health System ...... 15 Gail Duncan and her husband, Shashi Tej- Harbor Hill Marina ...... 24 Honigman Miller ...... 15 Paul, have agreed to pay the lending agency $1 ITC Holdings Corp...... 6 million, which will settle Ford Credit’s out- Jefferson Beach Marina ...... 24 standing financial claims against Duncan, Jerome-Duncan Ford ...... 3 who as dealer principal of Jerome-Duncan Ford Kean’s Marina ...... 24 filed for Chapter 11 protection in 2005. Kresge Foundation ...... 1 After liquidation and foreclosure of the deal- KS Credit Education Solutions . . . 20 Marathon Petroleum Co. L.L.C. . . . . 1 ership’s Sterling Heights property, Duncan NATHAN SKID/CRAIN’S DETROIT BUSINESS Media Genesis Inc...... 6 Mark Mathes, president of Emerald City Harbor in St. Clair Shores, and other area boat sellers are trying to weather still owed Ford Credit a dis- Michigan Boating Industry Assoc. . 24 a perfect storm of turbulent economic conditions. puted amount of money, Michigan Dept. of Env. Quality . . . . 1 once estimated at roughly $9 Michigan Dept. of Transportation . 3 million, according to a pre- Michigan Nonprofit Assoc...... 25 vious report in Automotive Michigan State University Recreational Marine Research Center ...... 3 News. National City Corp...... 7 Attorneys for Gail Dun- NSF International ...... 25 can said the amount of Dun- Oakland University ...... 1 Rough waters can’s debt was confidential Oakwood Healthcare System . . . . 15 as part of the settlement OU Inc...... 1 agreement. Meredith Plante & Moran P.L.L.C...... 21 Platinum Yacht Sales ...... 24 Libbey, public-affairs man- Duncan Plymouth Management Co...... 1 Boat sales, slip rentals down across state ager for Ford Credit, de- Severstal North America Inc...... 1 clined to provide a figure, saying the number Skillman Foundation ...... 25 BY NANCY KAFFER engines, boat trailers and some other aftermarket was in dispute. Southeast Michigan Council of Governments ...... 23 CRAIN’S DETROIT BUSINESS accessories have dropped from $584 million in 2003 That judgment contains the disposition of a St. John Health ...... 15 to $495 million in 2006, the most recent year for second, more complicated case. In 2006, Gail Three years ago, Mark Mathes was accustomed St. Joseph Mercy Oakland Hospital . 15 which such statistics were available, according to Duncan sued Ford Credit, alleging the lending The Henry Ford ...... 11 to seeing boats in 85 percent to 90 Jim Petru, co-director of Michi- agency had worked to put her out of business, Tanner Friedman ...... 6 percent of the 600 slips at Emerald gan State University’s Recreation- clearing the playing field for a handful of new Trinity Health ...... 15 City Harbor Inc. al Marine Research Center. The dealerships with corporate backing, according UM Transportation Research These days, occupancy hovers 19,512 MSU center doesn’t collect sail- to the suit. Institute ...... 23 around 70 percent, and the story boat sales figures because not “They made a decision to change dealers,” Wayne State University Law School. 20 Drop in boat registrations in William Beaumont Hospitals . . . . .15 on new boat sales is even more Southeast Michigan between all states require sailboat regis- Gail Duncan said. “They made a decision to dismal. December 2004 and April 2008 trations. say ‘We don’t want you anymore.’ ” Mathes, president of Emerald That’s a much greater decline According to Duncan’s Chapter 11 reorgani- City Harbor in St. Clair Shores, than other Great Lakes states. zation plan, as previously reported in Automo- said that new boat sales have de- 62,384 During the same period, Ohio tive News, the proceeds from that lawsuit could BUSINESS DIARY ...... 19 clined by 30 percent to 40 percent Drop in boat registrations sales declined by only about $1 go to settle outstanding post-bankruptcy CALENDAR ...... 17 in the past three years. statewide between million, Illinois sales have fluc- claims. CLASSIFIED ADS...... 18 “And it continues to deterio- December 2004 and April 2008 tuated but have a net $21 mil- Libbey wrote in an e-mail that Ford’s com- EARNINGS ...... 4 rate,” he said. “I think we’re lion increase, and in Wisconsin, ments would be limited, adding that the au- KEITH CRAIN ...... 8 faced with a lot of problems all at sales have increased from $441 tomaker prefers to resolve dealer issues with- one time. It’s almost the perfect storm when people million in 2003 to $473 million in 2006, Petru said. out the need for litigation. LETTERS ...... 8 think about home equities in combination the And boat registrations, renewed every three That suit was deemed to have no cause for MARY KRAMER...... 9 with job market; all together it has damaged the years for existing permit holders, are down just action in the judgment, entered April 3 in the OPINION ...... 8 watercraft market.” over 6 percent since 2004 — from 1,001,505 at the U.S. Bankruptcy Court’s Eastern District of Michi- PEOPLE ...... 18 Mathes isn’t the only Michigan boat seller who’s end of 2004 to 939,121 as of April 1, according to sta- gan, Southern Division. bailing water. RUMBLINGS...... 26 Statewide, sales of new powerboats, outboard See Boating, Page 24 See Ford, Page 24 WEEK IN REVIEW ...... 26 DETROIT BUSINESS MAIN 04-28-08 A 4 CDB 4/25/2008 5:21 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS April 28, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES is pleased to offer Taubman Co. makes gains amid slump, expects growth in Asia

BY NANCY KAFFER remainder of the year. Taubman “This is a long-term strategic CRAIN’S DETROIT BUSINESS stock closed at $56.91 on Friday, commitment to the markets of down $1.14 from Thursday. Asia,” she said. “I think over next Despite concerns about Michi- Taubman’s newest local devel- 20 to 30 years it will be one of great- Arcus Centre gan’s gloomy retail outlook, Taub- opment, Partridge Creek, is more est growth opportunities the world man Co. Chairman Robert Taub- than 90 percent occupied, Taub- has ever seen.” Full 140,350 square foot Corporate Headquarters building man says he’s cautiously optimis- man said last week during a con- Over the past 10 years, Baker Available for immediate occupancy tic, confident in his company’s ference call with investors and an- said, Taubman has opened 10 pro- Naming rights ability to weather the economy alysts. The project is on target for a jects and hopes to maintain that 28,000 square foot floor plates and hopeful about ongoing devel- 10 percent return on Taubman’s pace — which could mean as many xÊÃ̜ÀÞÊLՈ`ˆ˜}ÊUʈ} ÊۈÈLˆˆÌÞÊvÀœ“Ê ÀœœŽÃÊ,œ>`Êi݈Ìʜ˜Ê‡Çx opment projects. $155 million investment by 2009, as five new Asian projects over the "˜‡ÃˆÌiʓ>˜>}i“i˜ÌÊUÊ À>“>̈VÊvՏ‡ iˆ} ÌÊ>ÌÀˆÕ“ʏœLLÞ The Bloomfield Hills-based real according to analysts. next seven to 10 years. Տ‡ÃiÀۈViÊV>viÌiÀˆ> estate investment trust owns 23 “Ten percent is our target for de- “If we continue to develop new shopping centers, including Novi’s velopment projects,” said Barbara projects in the U.S. and continue to For leasing information, please contact: Twelve Oaks, Clinton Township’s Baker, vice president of investor prune assets in the U.S. from time Partridge Creek and Great Lakes >ÀŽÊ œˆ˜ÃÊÓ{n°Îx£°ÓäÓ£ relations. “When we originally de- to time, we could reach a point Crossing in Auburn Hills. cided to go forward at Partridge where 15 to 20 percent of our net é ,i˜ iÊ iÊ-«i`iÀÊÓ{n°™ÎÈ°Èn£™ Taubman (NYSE: TCO) last Creek, our expected return was 9.5 operating income comes from Asia www.cbre.com/detroit week released its first-quarter percent. Leasing went so well we in six or seven years,” she said. earnings, reporting funds from op- increased it to 10 percent.” The company recently refi- Redefining Baluster Park as a Destination Not an Address erations of $54.7 million on rev- Taubman has a number of other nanced two properties, Baker said, enue of $157 million during the projects under way: Oyster Bay, a pushing maturities back to 2010. www.emmesco.com | 5750 New King St., Troy, MI 48098 quarter ending March 31, com- $146 million investment in Long Is- The real estate investment pared with funds from operations land that’s been the subject of ex- trust’s debt sheet is strong, accord- of $53.9 during the same quarter tensive litigation; a mixed-use pro- ing to a report from Citi analyst last year. ject in north Atlanta with 1.4 Michael Bilerman, but the compa- Funds from operations per million square feet of retail, ny is rated sell/speculative (3S). share were 68 cents, up from 65 900,000 square feet of office space, While the company’s 2006 sales cents the year before. Funds from residential units and hotel rooms; productivity was well above the operations are a key measure of and two Asian developments — U.S. mall average — $539 per profitability for REITs, calculated Studio City in Macau and New Song- square foot, according to Biler- by adding depreciation and amor- do City in South Korea. man’s report — Taubman’s rent tization expenses to earnings. The Asian developments have growth has lagged peers. The company is projecting 4.5 huge potential, Taubman said. All of the REITs Citi covers are percent to 5 percent growth for the “(New Songdo City) is the equiv- rated “high risk” or “speculative,” alent of when the Vanderbilts cre- based on concerns about REIT val- ated Grand Central Station above uation, Bilerman wrote, but in ground and put the railroad under- Taubman’s case, the control of the ground,” Taubman said during Taubman family spurs some con- last week’s conference call. “If you cerns. EARNINGS think of that kind of location in the In a previous takeover battle, it center of Seoul, this thing is that seemed the Taubman family “may Champion Enterprises NYSE: CHB kind of an opportunity.” not always seek to maximize value 1st Quarter March 31 2008 2007 Baker said that Asian projects for shareholders,” the report said. Revenue ...... $296,698,000 $259,797,000 will play a growing role in Taub- Nancy Kaffer: (313) 446-0412, Net income ...... ($20,484,000) ($7,246,000) Earnings per share ...... ($.26) ($.09) man’s development lineup. [email protected] Citizens Republic Bancorp Nasdaq:CRBC 1st Quarter May 31 2008 2007 Revenue ...... $218,042,000 $236,106,000 STREET TALK Net income ...... $11,127,000 $31,492,000 Earnings per share ...... $.15 $.41 THIS WEEK’S STOCK TOTALS: 31 GAINERS, 32 LOSERS, 12 UNCHANGED Dearborn Bancorp Inc. Nasdaq:DEAR CDB’S TOP PERFORMERS 04/25 04/18 PERCENT 1st Quarter March 31 2008 2007 CLOSE CLOSE CHANGE Revenue ...... $16,410,000 $17,916,000 1. Credit Acceptance Corp. $19.56 $16.61 17.76 Net income ...... $676,000 $1,618,000 Earnings per share ...... $.08 $.18 2. Syntel Inc. 31.92 28.61 11.57 3. Kelly Services Inc. 21.73 20.17 7.73 Flagstar Bancorp Inc. NYSE:FBC 4. Kaydon Corp. 48.65 45.32 7.35 1st Quarter March 31 2008 2007 5. FNBH Bancorp Inc. 12.50 11.75 6.38 Revenue ...... $263,527,000 $260,036,000 Net income ...... ($10,599,000) $7,759,000 6. General Motors Corp. 21.38 20.13 6.21 Earnings per share ...... ($.17) $.12 7. Borders Group Inc. 6.33 6.00 5.50 Pulte Homes NYSE: PHM 8. ArvinMeritor Inc. 13.43 13.00 3.31 9. Meadowbrook Insurance Group Inc. 8.52 8.26 3.15 1st Quarter March 31 2008 2007 Revenue ...... $1,448,819,000$1,871,433,000 10. Dearborn Bancorp Inc. 6.86 6.68 2.70 Net income ...... ($696,144,000)($85,672,000) 04/25 04/18 PERCENT Earnings per share ...... ($2.75) ($.34) CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE Taubman Co. NYSE: TCO 1. Clarkston Financial Corp. $4.00 $6.00 -33.33 1st Quarter March 31 2008 2007 2. Citizens Republic Bancorp Inc. 8.56 10.95 -21.83 Revenue ...... $157,417,000 $145,026,000 3. Perceptron Inc. 9.95 11.13 -10.60 †FFO ...... $54,756,000 $53,919,000 4. PSB Group Inc. 6.60 7.20 -8.33 ††Earnings per share ...... $.68 $.65 ...... 5. American Axle & Manufacturing 20.96 22.75 -7.87 †- Funds from operations are a key measure of 6. Flagstar Bancorp Inc. 6.34 6.87 -7.72 profitability for a real estate investment trust 7. Pulte Homes Inc. 13.69 14.82 -7.63 †† - Funds from operations per diluted share 8. Lear Corp. 25.95 27.80 -6.66 Syntel Inc. Nasdaq: SYNT 9. Rofin-Sinar Technologies Inc. 44.94 47.54 -5.47 10. Amerigon Inc. 14.01 14.78 -5.21 1st Quarter March 31 2008 2007 Revenue ...... $98,514,000 $75,430,000 Source: Bloomberg News. From a list of publicly owned companies with headquarters Net income ...... $20,434,000 $15,376,000 in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading Earnings per share ...... $.49 $.37 at less than $5 are not included. DBpageAD.qxd 4/9/2008 9:45 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS April 28, 2008 New Detroit chamber Web site Group expects blooms to follow 8 Mile tree trim

BY NATHAN SKID about the improvement that could aims to link area entrepreneurs CRAIN’S DETROIT BUSINESS occur when the trees are replaced. “It would take years or decades BY ROBERT ANKENY mation about events and other articles; offer mem- Stretches of Eight Mile Road of lobbying for me to get flowering may be synonymous with lots of CRAIN’S DETROIT BUSINESS ber-to-member discounts on goods and services; and trees,” Salisbury said. “We see this share best practices and expertise. Other features al- things, but flowering trees and as an enormous chance to improve When Detroiter Online, an expanded electronic ver- low users to give and receive advice in discussion fo- perennial gardens are rarely the Eight Mile among them. sion of the Detroit Regional Chamber’s award-winning rums and to post job opportunities. corridor.” This could change as Novi-based business publication, goes public on May 1, viewers The in-house chamber team that developed the site ITC has been ITC Holdings Corp. employs its vege- and users will find it far removed from a typical was led by Hans Erickson, senior vice president of in- granted permis- chamber of commerce newsletter. tation management system, which formation technology; Megan Spanitz, senior director sion to trim the Utilizing Web 2.0 technology, the site aims to pro- calls for zero tolerance of power of marketing; and Lisa Platt, assistant art director. trees along vide entrepreneurs with social and professional net- outages caused by contact with Troy-based Media Genesis Inc., a Web site develop- Eight Mile but is working like that offered by such popular sites as trees. ment company, served as consultant. not authorized LinkedIn.com and Technorati.com, said chamber COO The utility company is working Matt Friedman, a partner in Tanner Friedman to begin cutting Tammy Carnrike. with the Eight Mile Boulevard Associ- Strategic Communications of Farmington Hills and yet. Before it “The goal of Detroiter Online is to provide an in- ation; V8, a collaborative of non- can start, it who chairs the chamber’s public-relations commit- Salisbury clusive, Internet-based platform to connect the re- profits from Detroit and Warren; must reach an tee, said his group advised the staff on the future of gion’s small-business community,” Carnrike said. and the Michigan Department of agreement with residents at a the Detroiter, both print and online. “The new Web site combines technology, resources Transportation to deal with trees town hall meeting that will take “They listened to members,” Friedman said. “Vol- and networking to help small and medium business- that have overgrown their wel- place sometime in May. Cheryl unteer advice is not always taken, and it was pretty es grow.” come along a 20-mile stretch of Eberwein, senior communications unusual to have so many different representatives Located at www.detroiteronline.com, the site has Eight Mile between Grand River specialist at ITC, said the utility is been used internally for several months and is in fi- of the communications community come together Avenue and I-94. working with the community to nal testing stages, with more than 200 beta users on this.” The trees along the route are develop a plan if the trees must be since an April 10 rollout meeting. Friedman, who has used the site in its trial status, threatening to disrupt ITC trans- felled. The chamber will launch an aggressive advertis- said Detroit Online will provide a forum for compa- mission towers that are a major “We are working … to develop ing and grassroots campaign to the general business nies of all sizes to share information. part of the power grid for South- plans to install perennial gardens, public starting next month, Carnrike said. There is “It gives the entrepreneur equal access to the east Michigan. Of immediate con- shrubs and arboretums among no charge for using the site, and chamber member- same kind of PR tools that the Fortune 500 compa- cern to the utility is a stretch be- other things,” Eberwein said. ship isn’t necessary, she said. nies have.” tween Mound and Hoover roads. The Federal Energy Regulatory “It’s a simple registration and verification That’s important, he said, “because traditionally, But the tree cutting may have an Commission requires local trans- process, like Yahoo or Google,” Carnrike said. business media, for obvious reasons, gives more at- upside. mission companies to develop a Of the chamber’s 23,000 members, some 85 percent tention to big companies and that leaves entrepre- Tami Salisbury, executive direc- vegetation management program to 90 percent have 100 employees or fewer, she said, neurs and small companies frustrated about how to tor of the Eight Mile Boulevard As- or face fines up to $1 million a day. highlighting the need for this kind of interactive site. communicate about their businesses.” sociation, understands the need Nathan Skid: (313) 446-1654; Detroiter Online will let users upload news, infor- Robert Ankeny: (313) 446-0404, [email protected] for tree removal and is optimistic [email protected] DETROIT BUSINESS MAIN 04-28-08 A 7 CDB 4/25/2008 5:41 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 7 $7B infusion hasn’t fixed National City’s problems

The heightened interest in harder for plaintiffs to prove that Shareholders file lawsuits over stock price shareholder litigation comes in it was the actions of the executives the wake of securities class-action or the company that caused the BY JAY MILLER suits against Enron Corp. and World- loss of stock value.” CRAIN NEWS SERVICE Com Inc. earlier in this decade that LaCroix estimates that one- It doesn’t surprise me, given the won shareholders and their third of these shareholder lawsuits A $7 billion capital infusion has “ lawyers billions of dollars. are dismissed outright before a tri- removed one distraction from the magnitude of the share price drop, that Often, these suits are instigated al is scheduled. shoulders of the officers and direc- by attorneys specializing in class- “But those that survive motions tors of National City Corp., but it has- (National City) attracted the attention action litigation who see an oppor- to dismiss usually settle,” he said, n’t made a litany of lawsuits against tunity for settlements that include noting that fewer than 20 cases since a bank holding company that re- of plaintiffs’ lawyers. substantial legal fees. As a result, 1995, out of several thousand filed, mains saddled with hordes of ” lawyer Web sites and press releas- have gone through a jury trial. shaky, housing-related loans go Kevin LaCroix, attorney es in recent months have sought The amounts of settlements away. shareholders to serve as plaintiffs. vary widely. A study released in National City executives still lawyers as well. Employees through diluted even more. “Schatz Nobel Izard Announces In- March by Cornerstone Research, a must contend with more than a their company pension plans had Under the plan announced last vestigation of National City Sav- Washington, D.C., consultancy dozen lawsuits charging them with significant National City holdings week, a group of institutional in- ings and Investment Plans” an- that focuses on the economic costing shareholders millions of that now will provide them with vestors led by private-equity firm nounces the Web site of Schatz analysis of litigation and regulato- dollars by failing to disclose fully much smaller nest eggs. Corsair Capital L.L.C. of New York Nobel Izard P.C. of Hartford, Conn. ry proceedings, found the median the problems the company faced. The volume of lawsuits against would invest $7 billion to prop up “It doesn’t surprise me, given the settlement in a securities class-ac- Lawyers who watch these cases the company should not be sur- the ailing company in exchange magnitude of the share price drop, tion case was $9 million; the say it’s impossible to calculate the prising. Shareholders have for an approximate 70 percent that (National City) attracted the at- amount was higher when there potential financial impact of the ac- watched their investments in Na- stake in National City. tention of plaintiffs’ lawyers,” were related shareholder deriva- tions but that it’s safe to say the cas- tional City waste away as the com- The batch of shareholder law- LaCroix said. “These are the kinds tive actions. es will be a distraction — possibly a pany’s bottom line was hammered suits against National City is part of circumstances where you could Because corporate executives costly one — for several years. by the billions of dollars of sub- of a wave of litigation against fi- predict there would be a lawsuit.” and board directors are heavily in- The lawsuits have been filed prime mortgages and high-risk nancial firms that dove too deeply National City officials declined sured against claims stemming since the first of the year in U.S. home-equity loans on its books. into the subprime mortgage lend- to comment for this story. from the performance of their du- District Court in Cleveland. Essen- Over the past 12 months, the stock ing business. Still, whether shareholders or ties, only the largest nine- or 10- tially, they charge the company’s fell more than 80 percent from a Kevin LaCroix, a Beachwood, lawyers see a penny from National digit settlements would affect a leaders with diminishing the val- high of nearly $38 a share to $6.30 a Ohio, attorney and consultant on City will depend on the ability of company’s bottom line. ue of the shareholders’ invest- share Thursday. directors’ and officers’ insurance, their claims to survive a compli- “But certainly they’ve got the ments and crippling the company Now, with the eventual issuance has compiled a list of 76 active cas- cated legal process that kills many potential to be distracting,” said financially. of 1.4 billion shares of new com- es filed against subprime lenders cases before they can get to trial. Bailey, the Columbus attorney. “It And it isn’t just regular share- mon stock under the capital infu- nationally, 36 of which were filed “There are a lot of hurdles be- takes the time of senior manage- holders who are suing National sion plan, existing stockholders in 2008. He is not involved in any of fore a payday,” LaCroix said. “The ment and the board.” City, its employees are hiring will see the value of their holdings the lawsuits against National City. courts and Congress have made it From Crain’s Cleveland Business FINALLY, YOU HAVE A CHOICE

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Page 8 CRAIN’S DETROIT BUSINESS April 28, 2008 OPINION County executive is right for Macomb acomb needs a county executive form of government. Macomb County voters have a chance on May 6 to M tune up the county for the 21st century. Respected po- litical leaders, from Sheriff Mark Hackel to former county board chairs Nancy White and Patrick Johnson, support the change. Hackel has been rumored to be one of the leading con- tenders for the job if voters approve the new form of govern- ment. But he and other leaders speak from experience. With 26 commissioners serving as both legislative and ex- ecutive managers of the county, the county is slow to act on current economic challenges — and opportunities. Last month, the pro-executive county government veterans mentioned above issued a press release that said the current system may have worked when the county was smaller. To- day, they said in a joint statement, “the buck stops nowhere.” The anti-tax forces in Macomb are strong; they tell voters that a county executive will add another layer of government and force a tax increase. But voters need only to look at neigh- boring Oakland and Wayne counties to see how a strong, cen- tral leader can better lead the county of 840,000 residents. LETTERS The County Commission can remain a legislative body, but the single executive can act more quickly to manage the coun- ty and offer creative ideas to build the county’s economy. Macomb County residents — and businesses — deserve a Give credit for good works government with a strong, central and elected leader. Editor: a lender’s license and to re-enter Crain’s Detroit Business On April 16, World Alliance Fi- that market later this year. welcomes letters to the editor. nancial Corp. held a press confer- I have always had great respect All letters will be considered for Nonprofit pay data vital ence and reception to honor its for Crain’s, and I am puzzled by publication, provided they are the negative attention brought to commitment to the city of Troy signed and do not defame our company as we celebrate job Top executives of publicly held companies are accustomed and to donate $5,000 to the Boys & individuals or organizations. to having their salary and compensation published for share- Girls Club of Troy. Gov. Jennifer Letters may be edited for length creation and corporate citizen- ship. Many of our competitors are holders, employees and the general public to see. Granholm, Troy Mayor Louise and clarity. laying off by the hundreds. Schilling and Doug Smith, Oak- Write: Editor, Crain’s Detroit Nonprofit executives aren’t as accustomed to that scrutiny. I believe Crain’s needs to give land County director of economic Business, 1155 Gratiot Ave., But the information is public because the organizations they credit where it’s due and not im- development and community af- Detroit, MI 48207-2997. work for enjoy nonprofit, tax-exempt status. They are, in a pose negative stigmas on compa- fairs, spoke at the event and joined E-mail: [email protected] broad sense, part of a public trust. in celebrating our success. World nies that are working to improve the community and create jobs. This year, for the third time, Crain’s publishes its list of the Alliance has brought 123 new jobs cense and that we will seek new li- David Peskin to the Troy area in less than a top-compensated nonprofit executives. censing later this year. This state- CEO Perhaps in the general public, there may be a certain year and has committed to contin- World Alliance Financial ued job growth. ment is only partially true. Troy “wow” factor of examining salaries. But the budgets of these Your This Just In item of April The company has been able to organizations (particularly in health care), the scope of re- 21, “Lender hits 1st tax-break tar- work with the Commonwealth of Much support for Gilda’s sponsibilities and the importance to the region of strong non- get,” did not cover any of the posi- Massachusetts to address its con- Editor: profits require that they carefully benchmark themselves to tive events happening at our com- cerns and, as a result, has been I’m writing in response to the attract and retain strong leadership and management talent. pany. The only item covered in successful in having the cease- April 21 article “Unchecked Pas- Business executives serving on nonprofit boards can use your paper was the fact that we and-desist order lifted. No admin- sion.” While there are many inac- istrative penalty has been paid in curacies, our major concern is the the information to benchmark their organizations. And non- had previously faced an issue in Massachusetts. Your article states connection with the lifting of the disservice to individuals, local profit executives can use the data to make a case to their own that we resolved the issue by sur- order. The company will work businesses, corporations and ma- boards on their own relative value to the organizations. rendering our mortgage broker li- with the commonwealth to obtain See Letters, Page 9

KEITH CRAIN: It’s time for us all to rethink Michigan Let’s face it. The Detroit Three, are doing — developing I think we are well-sit- tween Ann Arbor and Detroit for state line, we have hundreds of formerly known as the Big Three, strong businesses all uated for a huge spurt in computers and computer sciences. great places to entice tourists, es- have seen dramatic declines in mar- around the world to re- the health care industry. The auto industry is still the largest pecially as short jaunts by car may ket share ever since the oil embargo place lost U.S. business. Whether you’re talking user of computers in the world, make more sense than a costlier of the early ’70s. In those days, there But we have a lot of about a manufacturer with something like five computers airplane ticket. were four producers in the U.S. sell- folks in Michigan who like Stryker Corp. in in every car. But the world needs We can put our heads in the sand ing alongside Volkswagen and that grew up with the auto Kalamazoo or one of the computing and bright people who and hope that everything will re- was about it. Today there are 20 business and who don’t many hospitals and hos- can apply computing power to turn to the way it was, but some manufacturers and importers vy- want to move to China pital chains around the every facet of our lives. There is changes are permanent. There will ing for every sale. or Russia. So, what’s a state, health care as a nothing but growth in this field. never be another Hudson’s, and There isn’t anything the Detroit fellow to do? segment of the gross na- And we probably shouldn’t ever don’t plan on seeing another Tigers Three can do to recreate the “good Take a hard look at tional product is growing forget the simple fact that we have game at Briggs Stadium. old days,” much less regain their what’s going on in as we all grow older. become one of the premier tourist We have to always say the glass previous strength and glory. The Michigan and see if there are some And let’s not forget that we have attractions in the Midwest. From is half-full. Otherwise it gets pretty smart thing for them is what they real growth industries. created a whole cottage industry be- the Upper Peninsula to the Indiana gray all year round. DETROIT BUSINESS MAIN 04-28-08 A 9 CDB 4/24/2008 6:59 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Will biz suffer if Dems win Oakland majority? Brooks Patterson has done well for the county party or- Democrats gain a ma- patron, it did feel like I was in a bit the whole evening was intended to as county executive in Oakland ganization to help raise jority, they’ll set a so- of a time warp. For starters, all of allow roasters a chance to get back County. His pro-business ap- cash for Republican cial activist agenda: the eight scheduled roasters were at the glib Patterson, whose wit is proach to county government per- commission candi- More human service white men. At last minute, a legendary in this region. meates how the county is run, but dates. programs or rules like woman was substituted for one of Patterson’s many supporters un- it also is the bedrock of programs Why are Republicans the proposed — but not the eight males. doubtedly enjoyed the roast and he has launched to help existing slipping in this long- adopted — ban on trans The room was mostly white. party. But behind it all was serious businesses grow — and find more time bastion of the fats in restaurants in And mostly over 50. (As the cele- business. Patterson himself seems that want to move to Oakland GOP? I’m not a political the county. brant of a recent “double-nickel” invincible in running again for County. analyst, but I’m sure Patterson long has birthday, I was among the county executive. But if he loses the But that pro-business agenda some of Wayne Coun- battled right-wing ele- youngest people there.) Republican majority on the com- could be shaken if the delicate 13- ty’s population loss has ments in his party and Finally, the tone of the evening’s mission, his pro-business agenda 12 Republican majority on the been Oakland County’s pushed to keep moder- remarks — at least the first hour may become harder to pursue. Oakland County Commission gain. Also, term-limited ate Republicans from — seemed to scream “stag party,” Mary Kramer is publisher of shifts this fall. Just four years ago, state lawmakers from both parties opting for Democratic candidates. even though dozens of women Crain's Detroit Business. Catch her the margin was 15-10. — with name recognition — seem So how does the current party were in the seated dinner crowd at take on business news at 6:50 a.m. The high stakes are one reason to be showing up on county com- structure look? the Royal Park Hotel in Rochester. Mondays on the Paul W. Smith show Brooks agreed to be “roasted” mission ballots. When I stopped by the roast I wasn’t offended by the lan- on WJR AM 760. E-mail her at Wednesday night at a fundraiser Republicans worry that if the event briefly as a guest of a paying guage. Just surprised. Granted, [email protected].

LETTERS CONTINUED ■ From Page 8 In celebration of National Volunteer Week, jor foundations that have support- Wayne State University School of Business Administration ed Gilda’s Club Metro Detroit. The extends a heartfelt tone of the article implies that only the Radner family is providing fi- nancial assistance to Gilda’s Club Metro Detroit. Thank You If the reporter had looked at our records, she would have seen that we had thousands of donors in 2007 to all members of its Board of Visitors for their guidance and support. — the largest of whom was not re- lated to the Radners. Therese Boldt Marina A. Houghton Florine Mark Robert Riney Michael Radner is greatly re- President President President and CEO Executive Vice President spected at Gilda’s Club Metro De- McShane Professional Wolinski & Company, The WW Group, Inc and COO troit. He has the full support of our Search, LLC C.P.A., P.C. Henry Ford Health System board. We are very proud to have Daniel G. McNicholl him involved in our organization. David J. Breen George Johnson Chief Strategy Officer, Paul Schmidt We would like to thank all of our Market Managing Partner Managing Director Information Systems & Controller (Retired) supporters for standing beside us of Greater Michigan George Johnson & Services General Motors as we fulfill our mission of provid- Practice Company General Motors Corporation ing emotional and social support PricewaterhouseCoopers, Corporation to men, women and children im- Austin A. Kanter Charles G. Schultz LLP pacted by cancer so that “no one President Osman R. Minkara President should have to face cancer alone.” Terry Cross Kanter and Associates Managing Principal National City Vendor Joseph Perry Principal CIG Corp. Finance, LLC Executive Director Sharafat Khan Gilda’s Club Metro Detroit Windward Associates, LLC Royal Oak Principal Bernard Moray Peter A. Schweitzer Lin Cummins Deloitte Consulting, LLP Chairman and CEO Chairman Emeritus Don’t hurt fundraising Senior Vice President, Gorman’s Gallery, Inc. J. Walter Thompson John Kill Editor: Communications Company Senior Vice President David E. Morris I read with some curiosity your ArvinMeritor, Inc. April 21 article “Unchecked Pas- of Global Marketing, Managing Director Stephen Strome sion.” I tried to find a thread, a Paul W. Czamanske Innovation and Business Oracle Capital Partners, Chairman and CEO theme, a purpose and couldn’t. At President and CEO Development LLC (Retired) first I thought you were writing Compass Group, Ltd. Visteon Corporation Handleman Company about the heart and soul of Gilda’s Martin Mulloy Club, Michael Radner. Then it Tarik Daoud John Kolon Vice President of Labor Jane Sydlowski sounded like you were saying too President Executive Vice President Relations President much support could be a bad thing Al Long Ford Simons Michelson Zieve, Ford Motor Company AMI Strategies (quite strange). Inc. Then you wrote about a years- Anthony P. Frabotta Sandra E. Pierce Susan Telang old incident for which charges Chairman Mary Kramer President and Chief Partner weren’t substantiated and that did UHY, LLP Publisher Executive Officer Plante & Moran, PLLC not result in a lawsuit, but which Crain’s Detroit Business Charter One Bank – Richard Gabrys John E. Utley was written about in a manner Michigan and Indiana that implied more than the actual Chairman Paolo Maccario Chairman events. The alleged “threat” of a Mears Investments, LLC President and CEO Ronald Pniewski X-Rite, Inc. lawsuit; would that be similar to Meridian Technologies, Executive Director, Global Paul A. Glantz James H. Vandenberghe my saying I might sue Crain’s for a Inc. Product Development President and CEO Vice Chairman libelous article and based on my General Motors statement other media could use Proctor Financial, Inc. Lear Corporation that statement in articles about Corporation your incompetence? How unfair Elliott S. Hall Roger E. Winkelman that would be. Member Attorney and Consultant Then it sounded like you were Dykema Gossett State Office of trying to say there is something Administrative Hearings dysfunctional in the board of di- rectors because it can’t seem to hire a CEO that can keep the job. Finally, I concluded that a dis- gruntled former CEO had fed you a line that resulted in your story. There are many organizations that offer some type of cancer sup- port; there is only one that offers See Letters, Page 10 DETROIT BUSINESS MAIN 04-28-08 A 10 CDB 4/24/2008 4:50 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS April 28, 2008

LETTERS CONTINUED ■ From Page 9 20-plus clubhouses. complete coverage through their involving the mayor and his top thing noble or courageous about If the world was filled with people auto insurance policy. aide (Week in Review: “Kilpatrick this kind of behavior is to, once the type of community and caring like Michael Radner, it would be a Again, McKinney’s assertion judge won’t recuse himself from again, place the emphasis in the support that is the hallmark of Gil- much better place. Thanks for re- that people should not choose to case,” April 21). Much of this spec- wrong place: on the physical char- da’s Club Metro Detroit. Fundrais- minding me to include a donation acteristics instead of the capabili- ing is the key to existence. Your ar- coordinate their policies because ulation borders on excuses, deflec- in his honor to Gilda’s Club Metro ties of the candidate. ticle may harm the efforts to raise it is a windfall to insurers is inac- tions and hollow fiction. Detroit in my giving plan this year. Ron Clark the desperately needed financial curate and misleading. Allowing Kym Worthy’s reason for dis- Jackie Schmidt insurance companies to provide missing all of the judges cannot be President support. Seattle, Wash. Blackburn Automation Products Craig Strain lower rates to policyholders who tolerated or defended. Livonia Gilda’s Club Volunteer choose not to duplicate their cov- Her ill-sought motion reinforces Farmington Hills Assertions rebutted erage benefits policyholders. the false notion that justice cannot Missed opportunity Editor: The biggest inaccuracy is McKin- be rendered in Detroit. It attacks Editor: Radner story insulting As a representative of the state’s ney’s claim that if you are cata- the stewardship of the chief justice Imagine my dismay at a Focus Editor: largest property-casualty insur- strophically injured you will “ex- of the court and weakens the part- section on diversity (April 14) that In your April 21 issue, you, to ance trade association, I have to haust your health coverage.” It is nership between the prosecutor’s ignores disabled or handicapped my disappointment, featured a respond to factual inaccuracies not true that drivers who become office and the courts. The spectacle people. To tell your readers to go to slightly insulting article regarding and scare tactics presented by a severely injured in auto accidents damages the entire criminal jus- your Web site to read about “the Michael Radner. representative of the Coalition and choose to coordinate their bene- tice system and threatens the advantages of hiring people with For seven years and counting I Protecting Auto No-Fault in a re- fits could run out of medical bene- prospect of justice for all of us. disabilities” is more of an insult have admired Radner without cent Crain’s article, “Auto insur- fits for their injuries. If a policy is She could elevate the operation than if you didn’t bother to report reservation. He gives tremendously ers’ coordinated benefits policies coordinated, it means that the of our criminal justice system by anything. Aren’t we good enough of his money, time and energy to under fire.” (April 14) health insurer pays first and then withdrawing her motion now. to use some printed paper on? Gilda’s Club, an amazing free can- In the article, CPAN spokesper- the auto insurer will pay for contin- Greg Thrasher I think Crain’s should apologize cer-support community that helps son Kevin McKinney alleges that ued treatment or some services not Director to the only diversity group that is thousands across the country. He policyholders who choose to coor- covered by the health insurance Plane Ideas Birmingham not a matter of birth. I earned my anguishes over every penny spent dinate auto insurance with other policy. Michigan law requires auto disability serving in the U.S. mili- on himself while at the same time health insurance benefits are over- insurance to provide unlimited, tary. I also find it unconscionable generously donating funds to Gil- paying for their auto insurance. Where’s the value? lifetime benefits, whether the poli- that you would not point out that da’s Club. He also helps with what- That is not true. Editor: cy is coordinated or not. federal and state laws state that ever is needed, from taking out the In fact, our companies’ review of Could you please explain to me Pete Kuhnmuench service-disabled veteran-owned trash at the local clubhouse to dis- claims data shows that many poli- Executive Director the inherent value of recruiting a businesses are a recognized diver- rupting his life for a few days to vis- cyholders are actually underpay- Insurance Institute of Michigan transgender (“Eaton Corp. helped sity group and so many major cor- it distant cities for grand openings. ing for coordinated benefits cover- Lansing transgender employee,” April 14)? porations must include them in His (and Joanna Bull’s) visit to age. Many people elect to While Audrey Hopkins may be a their diversity programs. Crain’s Seattle in 2001 was critical in get- coordinate their auto insurance Motion without merit fine employee, it is in spite of the had an opportunity to be a leading ting our clubhouse open. We were policies and receive a discount Editor: fact that she is confused about her inspired by his warmth, “Radner without checking to ensure that There have been a number of sexual identity, not because of it. media voice for the diversity com- humor,” and heartfelt honesty to their health insurance provides opinions on the nature of the What you suggest as “diversity” munity; it’s too bad you blew it. join the Gilda’s Club family, give coverage for auto accident in- Wayne County prosecutor’s mo- has nothing to do with introducing Keith King President and CEO generously, and get our clubhouse juries. Those people who are sub- tion to recuse the entire 36th Dis- innovative ideas to improve busi- Keith King & Associates L.L.C. open. He did the same for the other sequently injured are provided trict Court in the criminal matter ness. To suggest that there is some- Detroit DETROIT BUSINESS MAIN 04-28-08 A 11 CDB 4/24/2008 6:43 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Credit crunch

Sherri Begin writes Beaumont, other about nonprofits hospitals scrambling to and education. refinance costly bonds. Call (313) 446-1694 Page 15. or write [email protected] finance Sherri Begin Scrutiny grows Special report: for nonprofits Nonprofit pay We’ve spent the past several Nonprofits may not have to break months combing through 990 forms down their key executives’ reported and conducting additional research compensation, benefits and expenses to gather nonprofit salary, benefits now, but soon many will have no and bonus information. choice. Our research and reporting Several of the 57 nonprofits Crain’s identified trends in turnover, salary looked at closely to identify trends in and bonuses offered to the region’s nonprofit CEO compensation didn’t major nonprofit leaders. provide breakouts of the compensation packages they provided their top executives on their Form 990 ONUSES filings for calendar or fiscal 2006 in B time for publication. They’re on the rise, especially Others refused to provide additional among top health care executives, information, citing organizational policy. Page 14. Those refusals come at a time when nonprofit transparency is front OW MUCH DID THEY MAKE and center for the U.S. Senate Finance H ? Committee, the U.S. House Ways and Total compensation for top Means Committee and the Internal nonprofit executives, Page 14. Revenue Service. That increased scrutiny late last Community arts year yielded new tax forms for & culture nonprofits that will greatly increase the amount of information they must Graham Beal report publicly. Detroit Institute Nonprofits operating on a calendar of Arts year will have to file them for 2008. $500,137 Those operating on a fiscal year will Following have to file them for fiscal years ending in 2009. Business Small and midsize nonprofits may still be able to file 990-EZ for 2008 organizations and 2009 to give them time to get Nancy Berg familiar with the new requirements Society of and to get their record keeping and Manufacturing systems in place, said Erin Skene- Engineers the leader Pratt, director of public policy at the Michigan Nonprofit Association. $443,129 Nonprofits filing on a calendar year already should be collecting certain Foundations Nonprofits find replacing CEOs from types of information, said Sue Perlin, Ira Strumwasser partner and industry group leader for the not-for-profit services group at Blue Cross Blue within could save money on salaries Plante & Moran P.L.L.C. Shield of Michigan While the forms have raised the Foundation threshold for reporting of and training, help focus compensation for executives and key $247,917 employees of nonprofits to $100,000 from $50,000, it will require much BY SHERRI BEGIN tential to; it is about preserving institutional more detail from nonprofits that pay Health care CRAIN’S DETROIT BUSINESS knowledge and the benefits of homegrown talent. $150,000 or more in total Joseph Swedish compensation to officers, trustees bout three years before Steve Hamp sig- Trinity Health and key employees and from naled his intentions to step down as CEO of Rapid turnover nonprofits that pay continuing Corp. A The Henry Ford, its board of trustees began “There is a discussion and concern about who is compensation of $10,000 or more to $2,068,733 identifying internal successor candidates. going to be taking over at area nonprofits,” said people who formerly held top “We believed The Henry Ford was on an appro- positions. Sue Perlin, partner and industry group leader for priate trajectory,” said George Francis III, a mem- the not-for-profit services group Those nonprofits will be required to ber of the nominating committee on The Henry file the new Schedule J, which at Plante & Moran P.L.L.C. in requires breakouts of base pay, Other Ford’s board and retired senior vice president and Southfield. “If the transition is- chief administrative officer of Blue Cross Blue Shield bonuses, descriptions of benefits Ken Baker n’t planned, there can be disrup- provided, disclosure of fringe benefits of Michigan. Altarum tion which can affect the organi- such as first-class or charter air travel, “It follows if the board is comfortable with the Institute zation internally and externally. travel for companions, housing trajectory, then you best stay inside the organiza- “Unplanned leadership transi- allowance or residence for personal $1,061,452 tion.” tions can make employees dis- use, discretionary spending accounts, The board identified people it felt were assets to tracted and take them off mis- and other factors. the organization and began providing them with sion, (and) funders typically The schedule will also ask about coaches and mentors from within the organization, don’t like to see disruption in the the methods nonprofits use to Perlin working with consultant RHR International. organization.” establish compensation and whether When Hamp announced his intentions to step the organizations required HOW TO BUY EXPANDED LIST A third of the largest 57 nonprofits on Crain’s substantiation of expenses before down in the fall of 2005, the board had two internal 2006 list of the top-paid nonprofit CEOs hired a new reimbursement, as well as for Download our nonprofit executives lined up as candidates to succeed him. top executive during the past three years. disclosure of nontaxable benefits compensation data on more than It took less than two weeks for the institution to Nineteen of the organizations had turnover at such as mileage reimbursement for 200 Michigan organizations in an name then-COO Patricia Mooradian as its new the top between 2005 and the end of 2007. personal vehicles. Instructions for the Excel spreadsheet for $49. It's CEO. About half of those nonprofits with CEO form — released in mid-April in draft especially useful for nonprofit board With high turnover among Southeast Michi- turnovers as of 2006 hired a successor for the CEO and open to comments at www.irs.gov members or nonprofit executives gan’s top nonprofit executives during the past few spot from outside, more evidence that succession until June — include 27 pages of who can use it to learn about years and more expected in the next few years, explanation about the compensation plans might be needed, experts say. compensation trends. See such succession plans are key, experts say. More and more nonprofits are turning to exter- information required, leaving much less www.crainsdetroit.com/lists room for guesswork and omissions. The benefit of the plans is not primarily about saving money on salaries, although it has the po- See Following, Page 12 DETROIT BUSINESS MAIN 04-28-08 A 12 CDB 4/24/2008 5:17 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS April 28, 2008

FOCUS:FINANCE Following: Internal candidates often best ■ From Page 11

nal — even national —searches to agers when you hire internally, identify successor CEOs because said Ron Lilek, vice president of Want to give your employees something to many have failed to groom inter- human resources at William Beau- really flip over? With more than 150 rides, nal candidates for the positions mont Hospital. shows and attractions, a day at Cedar Point or had difficulties doing so, said The health system formalized a Ed Steinhoff, a principal at hu- succession plan program from the is the answer. And, no matter what program man-resources health system CEO to departmen- you choose, you’ll save with our special consulting firm tal managers about four years ago group rates. Mercer in De- to counter an increased number of troit. anticipated retirements. Check out our Good Any Day Program and “They are “Just by looking at all of our ex- provide them with tickets that can be used all finding more ecs and their ages, (we) noticed we qualified people had some vulnerability,” Lilek season long. Or, you can schedule a Group outside their or- said. Event and bring the entire company out for a ganization,” he Beaumont’s board of directors day, and even treat them to a delightful picnic. said. instituted a mandatory retirement You give us the date and we’ll make the rest Steinhoff That can have age of 65 for top executives — re- a compounding taining the right to grant excep- happen, hassle-free. Whether you want to effect on compensation, Steinhoff tions. cover the cost or pass along a discount to your said. Nonprofits typically have to “That was a way to assure a employees, the bottom line is, we’ll customize offer executives from other parts smooth transition from (one) se- an event that will work for you. Sandusky, Ohio of the country higher compensa- nior leader to another,” Lilek said. tion to draw them to metro Detroit. The health system began formal- Five of the 10 nonprofits on izing the succession planning it Go to cpgroupfun.com or call 1-800 - 448 -2428 for more details. Crain’s list with CEO turnover as had used informally in the top lay- of 2006 paid their new CEOs more er of management for 20 or 30 that year then their former top ex- years, he said, using tests to assess ecutives earned in 2004, and three skills and interviewing supervi- of them hired outside CEOs. Top sors to identify talent in each area among them was the Detroit Sym- of the health system and its hospi- phony Orchestra. tals. Its president and executive di- It identified those ready to move NEW FORFOR 2008 2008 rector, Anne Parsons, joined the up immediately, if needed, and be- DSO in the summer of 2004 after gan putting in place individual de- serving as general manager of the velopment plans for those who New York City Ballet. She and Emil could move up with one to five Kang, former DSO president and years of coaching. executive director, worked only a Beaumont had groomed CEO part of that year. Ken Matzick as one of its internal But her reported compensation candidates with top leadership po- for 2006 was 44 percent higher than tential, well in advance of Ted Kang’s reported compensation of Wasson’s announcement in Janu- $246,274 in 2004, which reflected a 4 ary 2005 that he planned to retire, percent increase over his 2003 re- Lilek said. By Feb. 1 of that year, ported compensation. The DSO the health system’s board had didn’t return calls seeking com- named Matzick as Wasson’s suc- ment. cessor. “Our passion for client service The Henry Ford also counted Probably 80 percent of the time, among those paying their new the system prefers to hire leader- can lift your spirits, too”. CEOs more money, even though it ship successors internally, Lilek did hire from within. said. Choosing an internal candidate “When you have an internal wasn’t a move designed to reduce candidate who succeeds (another The Henry Ford’s compensation executive or manager), there’s a costs, said Francis. very smooth transition process — Mooradian earned $240,000 in re- they understand the system’s plan, ported compensation in 2006, 42 the local marketplace and have Passion for serving our clients, technical percent more than Hamp had been actively involved in the lead- expertise, and partner involvement have earned just two years earlier. ership of the hospital to this “If you lowball or fail to pay point,” said Lilek. Mark Stutman been the hallmark of Grant Thornton LLP Managing Partner -Tax competitively, somebody will Internal talent at area nonprof- in the U.S. for more than 80 years. Plus, you come in and lure or buy your tal- its may have a great deal of exper- get the benefit of Grant Thornton ent away from you,” Francis said. tise in fundraising or advocacy and institutional memory, which International member firms in 112 countries can be very helpful in continuing around the world. Give Paul Wolber, Benefits of developing talent to build an organization, said Managing Partner a call at 248.213.4207 or The largest benefit of hiring Erin Skene-Pratt, director of pub- www.GrantThornton.com from within using a succession lic policy at the Michigan Nonprofit contact us at . plan is continuity with a capital Association. Find out how it feels to work with people “C,” Francis said. “We recommend that organiza- Hiring internal candidates and tions have leadership transition who love what they do! putting in place programs to plans in place before the executive groom internal talent gives a non- leaves,” she said. profit continuity in approaches, “However, because of Michi- policies, procedures, people and gan’s economy, a lot of times pro- philosophies, Francis said. fessional development dollars are Inside-track programs give em- the first to go.” ployees a sense that they can grow Are there any disadvantages to with the organization, which en- nonprofits grooming internal can- Audit • Tax • Advisory courages them to be more produc- didates? www.GrantThornton.com tive in their current roles and in- “I don’t think so,” Francis said. creases employee retention, he “You can always make a decision said. to look outside.” There’s a reduced learning Sherri Begin: (313) 446-1694, curve for new executives and man- [email protected] DETROIT BUSINESS MAIN 04-28-08 A 13 CDB 4/24/2008 6:44 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 13

FOCUS:FINANCE Health care nonprofits “I wish I had made the move to Leonard & Company sooner. In this work environment, I have the research, technology, amenities, and freedom necessary for me to best meet the lead trend in bonuses financial needs of my clients.” — Bill Turner, Leonard & Company, Troy BY SHERRI BEGIN CRAIN’S DETROIT BUSINESS

Nonprofits continued to use per- formance-based bonuses as incen- $238,663 Median 2006 base pay based tives for top executives in 2006, re- on Crain’s research of 32 At inforcing a trend that emerged Detroit-area nonprofits Leonard & Company… most noticeably in 2004. While many local nonprofits in- clude annual, performance-based bonuses as part of their compensa- 11 percent …we listen to our brokers. And our brokers listen to their clients. tion packages, those in the health Median two-year raise in base care segment increasingly include pay Leonard & Company is Michigan’s largest independent brokerage firm. longer-term bonuses to reward performance and to retain key ex- We are a regional investment firm with an entrepreneurial environment that very ecutives. payment of long-term benefits of successful brokers want and need — a comfortable, stress-free atmosphere where they can Of the 45 largest area nonprofits $253,000, boosting her to the top- that provided Crain’s with a paid slot among business organi- experience independence, build their business, and best serve their clients. breakout of compensation for zation nonprofits. their top executives, 27 gave their Nancy Schlichting, president and We provide the finest amenities and the latest in research and technology, with securities executives bonuses in 2006. CEO of Henry Ford Health System, was carried by RBC Capital Markets, one of North America’s largest financial institutions. That compares with 25 nonprof- the highest paid nonprofit executive its on the list awarding bonuses to among organizations that provided their top executives in 2004. a compensation breakout. She re- “The trends in 2006 were really a ceived base pay of $905,594, a bonus continuation of what we saw in the of $476,889, a $165,000 retention plan 2004 data,” said Ed Steinhoff, prin- payout and $198,483 in retirement cipal with Detroit-based human re- program benefits. source consulting firm Mercer. Deferred compensation and sup- 7EST,ONG,AKE2OADs3UITEs4ROY -) There was in 2006 and still is to- plemental retirement plan pay- WWWLEONARDANDCOMPANYCOM day more of an interest in looking outs, both of which provide cash at incentive compensation as a payments after a specified number -ICHIGAN "IRMINGHAM 'RAND2APIDS 'ROSSE0OINTE&ARMS 3TERLING(EIGHTS4ROY #OLORADO.EW9ORK way to measure executive perfor- of years and can be used to retain © copyright 2008, Leonard & Company mance, he said. key executives, began emerging Health care nonprofits are lead- more in 2006, Cotter said. ing the trend. Nationally, about 80 Bonuses are an important piece percent of hospitals and heath sys- of nonprofit compensation packages tems have incentive programs, and offer flexibility, analysts say. said Tim Cotter, managing direc- When organizations opt to add a tor of Sullivan, Cotter and Associates bonus on top of base pay, it can Inc. in Detroit. help reward performance and help Nonprofits in the health care retain executives. They are also a segment are competing with for- way to “catch up” retiring profit companies more than some founders and executive directors, of the other nonprofit segments, said Al Candrilli, a partner at Steinhoff said. Avon, Ohio-based Organizational “They are ahead of the curve in Consulting Group L.L.C. annual bonuses and in some cases One way to catch them up is to de- long-term incentives based on sign bonus programs that are per- longer-term organizational perfor- formance-based, Candrilli said. mance,” he said. Probably 10 percent of hospitals If it determines it should offer a nationwide have programs that fo- pay increase, a nonprofit could cus on organizational perfor- give a lump sum payout or a signif- mance, typically over three- to icant increase in base pay to better five-year periods, Cotter said. position the executive for retire- Outside of the health care seg- ment, Candrilli said. ment, longer-term bonuses are “al- Steinhoff doesn’t believe that most unheard of,” he said. bonuses are raising total nonprofit On Crain’s list there was one ex- executive compensation over the ception: Nancy Berg, general man- long haul. ager of the Society of Manufacturing Sherri Begin: (313) 446-1694, sbe- Engineers, received a lump-sum [email protected]

CRAIN’S SEEKS RISING STAR ENTREPRENEURS Crain’s Detroit Business in its Oct. entrepreneurship. These people 20th issue will publish a are applying the spirit of “Salute to entrepreneurship to their Entrepreneurship.” These jobs; social entrepreneurs awards, launched in and intrepreneurs (people at partnership with EO, will large companies who find a recognize problem-solving way to run with and business acumen entrepreneurial ideas.) among entrepreneurs and See small businesses. The crainsdetroit.com/nominate award categories are: Up to for the nomination form. $1 million in revenue; $1 million Nominations are due by July 25. to $5 million in revenue; $5 Questions? Contact Jennette million to $10 million in revenue; Smith at [email protected] or $10 million to $100 million in (313) 446-1622 or Jennifer Dunn revenue; student entrepreneurs; at [email protected] or (313) 446- nonprofit/government 6786. DETROIT BUSINESS MAIN 04-28-08 A 14 CDB 4/24/2008 6:58 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS April 28, 2008

FOCUS:FINANCE Top-paid nonprofit executives This list was compiled by reviewing Form 990s and through additional research. Total compensation includes: base salary; annual, long-term and retention bonuses; supplemental executive retirement plan and deferred compensation payouts and benefits. Community arts and culture Total compensation Base salary % Top executive/organization 2006 2004 2006 2004 change Graham Beal, Detroit Institute of Arts $500,136 $486,654 $303,000 $303,000 NC Anne Parsons, Detroit Symphony Orchestra❶ $429,252 $270,923 NP $246,274 NA Steven Antoniotti, Detroit Educational Television Foundation❷ $357,640 $332,506 NP $257,500 NA David DiChiera, Michigan Opera Theatre❸ $332,914 $295,788 $263,172 $242,350 8.6% Shirley Stancato, New Detroit Inc. $297,986 $262,686 NP NP NA Ron Kagan, Detroit Zoo $260,119 $250,988 $212,019 $179,385 18.2% Patricia Mooradian, The Henry Ford❹ $251,949 $177,311 $240,000 $168,461 42.5% Aaron Dworkin, Sphinx Organization $223,854 $140,544 $145,000 $115,200 25.9% Faye Alexander Nelson, Detroit Riverfront Conservancy Inc. $214,800 $187,200 $192,600 NA NA ❶Joined in 2006. 2004 numbers for Emil Kang. ❷ Resigned 2007. ❸ Reflects 27 pay periods rather than 26. ❹ Re- placed Steve Hamp in 2005. 2004 numbers are for Hamp. Business organizations Total compensation Base salary % Top executive/organization 2006 2004 2006 2004 change Nancy Berg, Society of Manufacturing Engineers❶ $443,129 $282,366 $127,551 $233,148 -45.3% Doug Rothwell, Detroit Renaissance Inc.❷ $409,498 $381,094 NP $300,000 NA Richard Blouse, Detroit Regional Chamber $265,722 $482,256 NP $360,000 NA Terry Barclay, Inforum $156,076 $113,500 NP $113,500 NA FREE Beth Chappell, Economic Club of Detroit❸ $150,000 $152,410 $150,000 $150,000 NC Tips & Tricks ❶Incudes $253,000 for long-term benefits payout. ❷ Joined in 2005. ❸ Base pay, no bonus, same from 2003-2006. class when you purchase your Fundraising foundations BlackBerry smartphone from Total compensation Base salary % the BlackBerry® Store Top executive/organization 2006 2004 2006 2004 change from Wireless Giant! W. Clark Durant, Cornerstone Schools/New Common School❶ $448,859 $466,353 $396,080 $430,137 -7.9% Glen Smiley, St. John Health Foundation❷ $396,629 $221,645 $277,510 NA NA Carla O’Malley Oakwood Healthcare System Foundation $364,905 $291,941 NP NA NA Margaret Cooney-Casey, The Beaumont Foundation $328,573 $314,425 $215,540 $232,458 NA ® TM Susan Burns Wayne State University Foundation❸ $218,195 $235,541 $181,303 NA NA BlackBerry Pearl 8130 ❶ Paid through each organization. ❷ Resigned from foundation in 2007. ❸ Replaced Meredith Gibbs, 2004 numbers re- flect Gibbs. Smartphone Other Total compensation Base salary % Top executive/organization 2006 2004 2006 2004 change • BlackBerry® Desktop Software v4.3 Ken Baker, Altarum Institute $1,061,452 $433,200 $323,833 $312,000 3.8% • Broadband Access Connect capable Kevan Lawlor, NSF International $663,576 $575,549 NP $262,859 NA • Integrated Email, Phone, SMS, & Browser Jane McNamara, Greenpath Inc. $517,553 $358,762 $330,005 $267,995 23.1% Richard Holthaus, National Association of Investors Corp❶ $385,652 $401,631 $347,454 $304,693 14.0% • Media Player with microSD™ memory support ❶ Holthaus retired in 2007. • Bluetooth® Wireless Technology Grantmaking foundations Total compensation Base salary % • Up to 10 business and/or personal email accounts Top executive/organization 2006 2004 2006 2004 change • VZ Navigatorsm Capable Robert Aronson, United Jewish Foundation/Jewish Federation❶ $394,388 $310,204 $270,940 $209,974 29.0% Mariam Noland, Community Foundation for Southeast Michigan❷ $335,972 $324,885 $283,027 $258,709 9.4% • 35–key backlit QWERTY Keyboard Carol Goss, The Skillman Foundation $318,075 $248,779 $267,000 $230,000 16.1% David Egner, Hudson-Webber Foundation $264,281 $233,663 $199,765 $177,911 12.3% C. David Campbell, McGregor Fund $252,440 $240,209 $215,031 $196,723 9.3% $ 99 Ira Strumwasser, Blue Cross Blue Shield of Michigan Foundation $247,917 $257,066 $138,808 $129,769 6.9% 99. Richard Rapson, The Kresge Foundation❸ $220,302 $657,862 $210,000 $505,015 -58.4% ❶ Paid half through each organization. ❷ Total compensation includes $20,343 that Noland contributed. ❸ Replaced $299.99 2-year price, plus $100.00 in-store rebate, John Marshall III; 2004 figures for Marshall. plus $100.00 mail-in rebate with new line activation, two year agreement & BlackBerry data plan Health care Total compensation Base salary % Top executive/organization 2006 2004 2006 2004 change Joseph Swedish, Trinity Health - Michigan❶ $2,068,733 $1,790,773 $1,086,286 $757,680 43.4% Nancy Schlichting, Henry Ford Health System $1,894,371 $1,438,429 $905,594 $752,890 20.3% Kenneth Matzick, William Beaumont Hospital❷ $1,693,332 $1,193,104 $673,539 $742,274 9.3% World’s First ❸ Gerald Fitzgerald, Oakwood Healthcare Inc. $1,545,195 $4,436,984 NP $551,515 NA ® Elliot Joseph, St. John Health $1,112,003 $908,209 $678,786 $579,136 17.2% Authorized BlackBerry Store Daniel Loepp, Blue Cross Blue Shield of Michigan❹ $990,351 $2,121,736 $570,523 $826,315 31.0% Now Open in Farmington Hills Francine Parker, Health Alliance Plan❺ $856,219 $504,628 $484,315 NA NA Michael Duggan, Detroit Medical Center $855,446 $566,164 $647,904 NP NA Gerson Cooper, Botsford Health Care (dba of Zieger Health Care)❻ $719,790 $637,242 $520,521 $497,000 4.7% 31380 Orchard Lake Rd, Farmington Hills, MI 48334 Kevin Seitz, Blue Care Network of Michigan $678,845 $628,580 $357,808 $304,615 17.5% ❶ Replaced Judith Pelham in 2005. 2004 numbers for Pelham. ❷ Replaced Ted Wasson in 2005; 2004 numbers for (Southeast corner of Orchard Lake Rd & 14 Mile Rd) Wasson. ❸ 2006 includes base and bonus. ❹ Replaced Richard Whitmer in 2006; 2004 numbers are for Whitmer. ❺ Resigned March 2008.❻ Paid through Botsford Hospital. 248·855·5777 Social services Total compensation Base salary % Top executive/organization 2006 2004 2006 2004 change *Our Surcharges (incl. Fed. Univ. Svc. of 11.3% of interstate & int’l telecom charges (varies quarterly), 7¢ Regulatory & 70¢ Administrative/line/mo., & others by Robert Wollack, Wolverine Human Services $409,517 $392,822 $268,237 $266,136 0.8% area) are not taxes (details: 1-888-684-1888); gov’t taxes & our surcharges could add 4% - 35% to your bill.Activation fee/line: $35 ($25 for secondary Family Reid Thebault, YMCA of Metropolitan Detroit $384,274 $373,112 $238,663 $214,579 11.2% SharePlan lines w/ 2 yr Agmts) IMPORTANT CONSUMER INFORMATION: Subject to Customer Agmt, Calling Plan, [rebate form] & credit approval. Up to $175 early termination fee, [up to] 45¢/min after allowance & $1.99/MB (incl. Mobile Web ads). Offers & coverage, varying by service, not available everywhere. Network Roger Myers, Presbyterian Villages of Michigan $295,522 $267,342 $222,865 $200,147 11.4% details & coverage maps at vzw.com. Nights 9:01 pm – 5:59 am M-F. Limited time offer, if applicable. Rebate takes up to 6 wks. ©2008 Verizon Wireless. Jon Rutherford, Metro Emergency Services Inc. $291,800 $288,486 NP $275,000 NA ® ® ® ® ©2008 Research In Motion Limited. All rights reserved. BlackBerry , RIM , Research In Motion , SureType and related trademarks, names and logos are the John Cocciolone, property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. Easter Seals Michigan Inc. $264,101 $190,628 $148,625 NA NA William Hansen, Leader Dogs for the Blind❶ $260,631 $202,328 $195,556 NA NA Delois Caldwell, Goodwill Industries of Greater Detroit❷ $257,705 $239,555 $213,469 $192,938 10.6% Mark Stutrud, Lutheran Social Services of Michigan $247,316 $226,915 $199,440 $190,574 4.6% ❶ Hansen retired in 2007. ❷ Caldwell retired March 2008. NA: Not available, NC: No change, NP: Not provided. DETROIT BUSINESS MAIN 04-28-08 A 15 CDB 4/24/2008 4:51 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 15

FOCUS:FINANCE Local hospitals flee auction-rate bond market

BY JAY GREENE partner with Honigman Miller Schwartz and percent of its total, at a 2 percent to 3 percent the risk of the auction-rate market,” said CRAIN’S DETROIT BUSINESS Cohn L.L.P. in Detroit. rate, he said. James Connelly, Henry Ford’s CFO. Hospitals were protected because when in- Over the next few weeks, Beaumont plans Like Henry Ford, Oakwood was con- Several large Detroit-area hospitals are vestors didn’t bid, the hospitals’ investment to purchase the rest of its auction-rate bonds cerned about volatility in the auction-rate scrambling to refinance once-trendy types bankers bought the bonds, Lockman said. “to drive our costs down,” he said. market and stuck with more traditional of variable rate bonds — called auction-rate But starting earlier this year, investors Herrick plans to convert the bonds into debt financing, said CFO Doug Welday. securities — after interest rates surged as began shying away from bidding on the auc- variable- or fixed-rate bonds, depending on Most of Oakwood’s $400 million in bonds are much as 10 percentage points or more in the tion-rate bonds. Hit by heavy losses from the prevailing rates, he said. “I have started fixed-rate debt instruments. wake of a credit crunch caused by the sub- subprime mortgage defaults, the banks did- to get a little more comfortable now,” Her- But to spread out principal payments, prime mortgage crisis. n’t have the cash to buy the bonds. rick said. “By fall we will be completely re- Lockman said some hospitals and large The higher interest rates are costing some Over nearly two decades, just 13 auctions structured and have this under control.” health care systems diversified their debt nonprofit hospitals thousands of dollars in didn’t place offerings. However, in late 2007, At Trinity, James Bosscher, the system’s portfolios between fixed, variable-rate and extra bond payments. In some cases, hospi- 31 auctions failed, said Moody’s Investors Ser- vice president of treasury, said the group auction-rate bonds. tals may delay capital expenditures as cash vices. By February, 111 auctions had failed acted quickly when its $600 million in auc- “Hospitals may have wanted to even out and reserves are diverted to pay increased and hospital officials began to worry. tion-rate bonds surged to 12 percent from their payments by having different types of bond interest costs. “We have around $344 million in auction- about 3 percent. debt structure,” he said. “They may take Local hospitals hit by the auction-rate rate securities, and that debt has been im- “We immediately worked with Merrill risks involved in short-term debt because bond meltdown include the three hospitals pacted by the subprime,” said Beaumont Lynch to restructure the securities to bring they believe the market may perform better owned by William Beaumont Hospitals in Roy- CFO Dennis Herrick. In down the rate to an average of 2.25 percent,” in some times. They may hedge those risks al Oak, the six hospitals of St. John Health in February, Beaumont’s said Bosscher. He added that the new inter- by looking at long-term debt.” Warren, and the 40 hospitals of Trinity Health auction-rate bonds failed, est rates are lower than the original bonds. in Novi. Trinity owns St. Joseph Mercy Oak- triggering default rates “We actually came out ahead,” he said. But now, with the auction-rate market in land Hospital in Pontiac. that spiked the bonds to 12 While the bonds are still variable auction- shambles, some hospitals are using short- St. John is affected because its parent or- percent from about 2 per- rate securities, Bosscher said the bonds are term, variable-rate bond financing strate- ganization, St. Louis-based Ascension Health, cent, he said. Interest fixed for nine months. “We issue debt each gies, often backed by bank letters of credit, has sold $727 million in auction-rate securi- rates at other hospitals, year in the fall and will incorporate this auc- bond insurance or both, Lockman said. ties. To cut its rising interest payments, As- he said, increased to 20 tion rate into our financing plan,” he said. To ease possible charges of market manip- cension refinanced the securities into vari- percent. At least three other area hospitals have ulation of bond interest rates, the Internal able-rate demand obligations. Herrick Over the past two not issued auction-rate securities, including Revenue Service and the Securities and Ex- Since the late 1990s, when auction-rate se- months, as Herrick sought to refinance, the Detroit-based Henry Ford Health System, Crit- change Commission recently advised hospi- curities first emerged as a strategy for tax- higher interest rates increased Beaumont’s tenton Hospital and Medical Center in tals that, in some cases, they may bid on exempt hospital financings, investors were costs as much as $10,000 per week. Rochester and the four hospitals of Oakwood their own bonds as a short-term solution, plentiful and hospitals saved thousands of “It cost us maybe $100,000,” Herrick said. Healthcare System in Dearborn. Lockman said. dollars selling the low-interest bonds in So far, Beaumont has bought back $53 mil- “We considered it, but we felt we had as Jay Greene: (313) 446-0325, weekly auctions, said Stuart Lockman, a lion of its auction-rate bonds, or about 40 good or better pricing for our bonds without [email protected]

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Page 16 CRAIN’S DETROIT BUSINESS April 28, 2008 CRAIN'S LIST: LARGEST U.S.-OWNED CRAIN'S LIST: LARGEST FOREIGN-OWNED DIVISIONS, SUBSIDIARIES AND AFFILIATES DIVISIONS, SUBSIDIARIES AND AFFILIATES Ranked by 2007 revenue Ranked by 2007 revenue

Company Company Address Revenue Revenue Address Revenue Revenue Phone; Web site Parent ($000,000) ($000,000) Rank Phone, Web site Parent ($000,000) ($000,000) Top local executive company 2007 2006 Rank Top executive company 2007 2006 Johnson Controls Automotive Experience Johnson Controls $17,552.0 $18,274.0 Robert Bosch L.L.C. Subsidiary $6,200.0 $5,800.0 49200 Halyard Drive, Plymouth 48170 Inc. 1. 38000 Hills Tech Drive, Farmington Hills 48331 Robert Bosch Gmbh 1. (734) 254-5000; www.johnsoncontrols.com Milwaukee (248) 876-5000; www.boschus.com Stuttgart, Germany Beda Bolzenius, president, automotive experience Peter Marks, chairman, president and CEO GKN Driveline North America Inc. Division 4,056.5 B 3,926.0 B 2. 3300 University Drive, Auburn Hills 48326 GKN plc General Dynamics Land Systems General Dynamics 4,000.0 3,043.0 (248) 377-1200; www.gknplc.com Worcestershire, 38500 Mound Road, Sterling Heights 48310 Corp. Philippe Cabassol, managing director-Americas England (586) 825-4000; www.gdls.com Falls Church, Va. 2. David Heebner Continental Automotive Systems C Division 4,000.0 2,000.0 1 Continental Drive, Auburn Hills 48326 Continental AG 3. (248) 393-5300; www.conti-online.com Hannover, Germany William Kozyra, member of the executive board Con-way Freight Inc. Con-way Inc. 2,900.0 2,865.0 Continental AG, president and CEO, Automotive Systems 110 Parkland Plaza, Ann Arbor 48103 San Mateo, Calif. division, North America (734) 769-0203; www.con-way.com/freight Affiliate 3,200.0 3,180.0 3. John Labrie, president ThyssenKrupp Materials NA Inc. 4. 22355 W. 11 Mile Road, Southfield 48033 ThyssenKrupp AG (248) 233-5600; www.tkmna.thyssenkrupp.com Duesseldorf, Joachim Limberg, chairman and CEO Germany DuPont Automotive E.I. du Pont de 2,800.0 4,902.0 Yazaki North America Inc. Subsidiary 3,061.2 3,643.5 950 Stephenson Highway, Troy 48007 Nemours & Co. 5. 6801 Haggerty Road, Canton Township 48187 Yazaki Corp. (248) 583-8000; www.automotive.dupont.com Wilmington, Del. (734) 983-1000; www.yazaki-na.com Tokyo 4. Marty McQuade, vice president and general manager George Perry, president TK Holdings Inc. Subsidiary 2,083.0 2,169.0 6. 2500 Takata Drive, Auburn Hills 48326 Takata Corp. St. John Health Ascension Health 1,821.5 1,730.6 (248) 373-8040; www.takata.com Tokyo 28000 Dequindre Road, Warren 48092 St. Louis Timothy Healy, executive vice president (888) 440-7325; www.stjohn.org 5. Patricia Maryland, president and CEO Metaldyne Corp. Subsidiary 1,863.0 1,849.0 7. 47603 Halyard Drive, Plymouth 48170 Asahi Tec Corp. (734) 207-6200; www.metaldyne.com Shizuoka, Japan Thomas Amato, chairman and CEO Dow Automotive Dow Chemical Co. 1,735.0 1,490.0 Subsidiary D 1,711.2 Midland Valeo Inc. 1,860.6 1250 Harmon Road, Auburn Hills 48326 8. 150 Stephenson, Troy 48083 Valeo S.A., France 6. (248) 391-6300; www.dowautomotive.com (248) 619-8300; www.valeo.com Peter Sykes, president Lawrence Lyng, group vice president, North America Aisin World Corp. of America Subsidiary 1,827.0 1,783.0 9. 46501 Commerce Center Drive, Plymouth 48170 Aisin Seiki Co. Ltd. U.S. Steel - Great Lakes Works U.S. Steel Corp. 1,611.0 B 1,600.0 (734) 453-5551; www.aisinworld.com Kariya, Aichi, Japan 100 Quality Drive, Ecorse 48229 Pittsburgh Don Whitsitt, president (313) 749-2100; www.ussteel.com 7. Fred Jauss, general manager CalsonicKansei North America Inc. Subsidiary 1,794.5 1,480.0 10. 27000 Hills Tech Court, Farmington Hills 48331 CalsonicKansei (248) 848-4800; www.calsonic.com Corp. Kiyoto Shinohara, president Tokyo, Japan Foamex 516.4 429.0 Foamex Automotive Products Group Division 1,228.0 1,170.0 28700 Cabot Drive, Suite 500, Novi 48377 International Inc. Toyoda Gosei North America Corp. (248) 553-1010; www.foamex.com Linwood, Pa. 11. 1400 Stephenson Highway, Troy 48083 Toyoda Gosei Co., 8. Donald Phillips, executive vice president automotive (248) 280-2100; www.toyodagosei.com Ltd. products division Yuzo Saito, president Aichi, Japan Freudenberg-NOK General Partnership General partnership 1,000.0 1,000.0 E 47690 E. Anchor Court, Plymouth 48170 Freudenberg & National City - Southeast Michigan National City Corp. 465.3 452.8 12. Co./NOK Corp. Cleveland (734) 451-0020; www.freudenberg-nok.com 755 W. Big Beaver Road, Troy 48084 Mohsen Sohi, CEO and president Weinheim, (888) 622-4932; nationalcity.com Germany/Tokyo 9. David Boyle, president, Michigan NTN Bearing Corp. of America Subsidiary 1,000.0 982.0 12. 39255 W. 12 Mile Road, Farmington Hills 48331-2975 NTN Corp. (248) 324-4700; www.ntnamerica.com Osaka, Japan SKD Automotive Group National Material 401.0 C 358.8 Angelo Desantis, vice president automotive group 1450 W. Long Lake, Troy 48098 L.P. Elk Grove Village, Logicalis Inc. Subsidiary 900.0 769.0 (248) 267-9670; www.skdautomotive.com Datatec Ltd. 10. John Chen, CEO, COO and president Ill. 1750 S. Telegraph Road, Suite 300 14. Bloomfield Hills 48302 Johannesburg, South (866) 456-4422; www.us.logicalis.com Africa Terry Flood, CFO Gale, a Cengage Learning Co. D Cengage Learning 312.0 B 325.0 Behr America Inc. Subsidiary 862.0 837.0 27500 Drake Road, Farmington Hills 48331 Stamford, Conn. 15. 2700 Daley Drive, Troy 48083 Behr GmbH and 11. (248) 699-4253; www.gale.com (248) 743-3700; www.behrgroup.com Co. KG Patrick Sommers, president Frank Mueller, CEO and president Stuttgart, Germany Hella Corporate Center USA Inc. Subsidiary 649.0 637.0 43811 Plymouth Oaks Blvd., Plymouth 48170 Hella HG Hueck & Campbell-Ewald Interpublic Group 239.0 B 230.0 B 16. (734) 414-0900; www.hella.com Co. 30400 Van Dyke Ave., Warren 48093 of Cos. Martin Tischer, Hella Corporate Center USA Inc. & Hella Lippstadt, Germany (586) 574-3400; www.campbell-ewald.com New York City Electronics Corp. 12. Anthony Hopp, chairman and CEO Inergy Automotive Systems, NAO Affiliate 543.0 552.0 17. 2710 Bellingham, Suite 400, Troy 48083 Inergy Automotive (248) 743-5700; www.inergyautomotive.com Systems Paris Entertainment Publications Inc. IAC/Interactive 182.7 196.8 Mark Sullivan, CEO and president 1414 E. Maple Road, Troy 48083 Group Subsidiary 500.0 385.0 New York City Brose North America Inc. 13. (248) 404-1000; www.entertainment.com 18. 3933 Automation Ave., Auburn Hills 48326 Brose Fahrzeugteile MaryAnn Rivers, CEO and president (248) 339-4000; www.brose.com GmbH & Co. KG Jan Kowal, president Coburg, Germany Skanska USA Building Inc. Subsidiary 486.0 464.5 TCF National Bank Michigan TCF National Bank 176.2 154.2 26100 American Drive, Suite 200 Skanska AB 17440 College Parkway, Livonia 48152 Wayzata, Minn. 19. Southfield 48034-2367 Stockholm, Sweden (734) 542-2900; www.tcfbank.com (248) 351-8300; www.skanska.com 14. Robert Grant, president, Michigan George Fadool, co-COO Omron Automotive Electronics Inc. Affiliate 360.0 315.0 29185 Cabot Drive, Novi 48377 Omron Corp. MPC Inc. - Automotive Division MPC Inc. 167.0 168.3 20. (248) 893-0200; www.omronauto.com Automoitve Walworth, Wis. Mike VanGendt, president Electronic 29200 Northwestern Highway, Southfield 48034 Components Co. (248) 799-8949; www.mpc-inc.com Komaki, Japan 15. Jim Brost, president This list contains information about Detroit-based divisions, affiliates, units and subsidiaries of foreign-owned companies whose headquarters are outside Wayne, Oakland, Macomb, Washtenaw and Livingston counties. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the This list contains information about Detroit-based divisions, affiliates, units and subsidiaries of U.S.-owned companies companies. NA means not available. Volkswagen of America Inc., No. 1 on last year's list, is in the process of moving whose headquarters are outside Wayne, Oakland, Macomb, Washtenaw and Livingston counties. This is not a its headquarters to Herndon, Va. LaSalle Bank Midwest N.A., No. 16 on last year's list, was acquired by North complete listing but the most comprehensive available. Unless otherwise noted, the companies provided the Carolina-based Bank of America in October 2007. Bank of America does not have a local division headquarters. information. NA means not available. B Revenue was converted from pounds as of Dec. 31. B Crain's estimate. C Continental acquired Siemen's VDO in December 2007. Figures include Siemen's 2007 sales. C From Automotive News. D From Automotive News. Figure represents North American OEM part sales. D In July 2007, Thomson Learning, parent company of Thomson Gale, was sold to private-equity and venture-capital E Company estimate. firms Apax Partners and Omers Capital Partners, to become a subsidiary of portfolio company Cengage Learning. LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH DETROIT BUSINESS MAIN 04-28-08 A 17 CDB 4/24/2008 4:53 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 17 CALENDAR TUESDAY President Ken Cockrel, Jr.; Macomb Commerce Annual Dinner. 6-11:30 p.m. County Commission Chair William May 10. With Norman Mineta, vice EET S HONOREES FOR BREAKFAST AY APRIL 29 Crouchman; and Mary Kramer, publish- chairman of Hill & Knowlton and for- M ‘20 ’ M 7 er, Crain’s Detroit Business. Detroit mer U.S. Secre- Breakfast with Robert Ficano. 7:30-9:15 Four current and former 20 in their Michelle Darwish will moderate a Marriott at the Renaissance Center, De- tary of Trans- a.m. Engineering Society of Detroit. 20s honorees will be the featured discussion on how Detroit can troit. $50 members, $88 others. Contact: portation. Ethnic Detroit Golf Club. $35 members, $50 speakers at Crain’s Business over nurture its young talent pool. others. Contact: (248) 353-0735. (313) 366-3388. attire or black tie Breakfast event on May 7. optional. Royal The breakfast is 7:30-9:30 a.m. at They are: Why Rising Health Costs Impact You. Park Hotel, the Renaissance Club in the 200 ■ THURSDAY 11:30 a.m. May 9. Inforum annual Rochester. $150. Austin Black, Realtor, Max tower of the Renaissance Center, meeting. Cathy Tripp, Watson Wyatt Contact: (248) 844- Broock Realtors, and president, Detroit. MAY 1 Worldwide national leader of con- 4100. City Living Detroit. Tickets are $45. The registration sumerism; Nick Barr, professor of eco- Capitalizing on Digital Content. 8-9:30 ■ Eric “Dusty” Duistermars, senior deadline is May 2. nomics, London School of Economics; associate, UGL Equis Corp. a.m. Adcraft Club of Detroit and 313 Michigan: First in To register, visit Nancy Schlichting, CEO, Henry Ford ■ Digital. Jim Helberg, media director, Mineta Challenges, First Phillip Cooley, co-owner, Slows www.crainsdetroit.com/events. Chrysler L.L.C; Mary Carpenter, presi- Health System, and Kate Kohn- Parrott, group director, Chrysler in Solutions. 11:30 a.m.-1:30 p.m. May Bar BQ. Questions? Call (313) 446-0300. dent, strategy and operations, GM ■ Jeanette Pierce, director of Planworks; Caroline Little, CEO, Corp. Troy Marriott. $50 members, $70 12. Detroit Economic Club. U.S. Sen. The presenting sponsor is Checker Washington Post Newsweek Interac- others. Contact (877) 633-3500. Debbie Stabenow. Dearborn Inn. $40 information, Inside Detroit. Sedan; platinum sponsor is The tive; Denise Warren, senior vice presi- members, $50 guests of members, $75 Crain’s Business Lives Editor Advanced Strategies Group Inc. dent, chief advertising officer, The Asian Pacific American Chamber of others. Contact: (313) 963-8547. New York Times; and Matthew Gold- berg, senior vice president strategy and operations, the Wall Street Jour- nal Digital Network. Townsend Hotel, Birmingham. $28 members, $15 stu- dents, $23 Junior Adcraft members, $33 others. Contact: (313) 872-7850. aeromexico.com 1 800 237 6639 (aeromex) MONDAY MAY 5 A New Vision for the Future of Trans- portation Projects in America. 11:30 a.m.-1:30 p.m. Detroit Economic Club. Mary Peters, Secretary, U.S. Depart- ment of Transportation. Burton Manor, Livonia. $40 members, $50 guests of members, $75 others. Con- tact: (313) 963-8547.

2008 National Brownfields Confer- ence. Today-May 7. Environmental Protection Agency, International City/County Management Associa- tion, ASTI Environmental, others. Cobo Hall, Detroit. Free to register. Contact: www.brownfields2008.org/. COMING EVENTS ESD/DTE Energy Conference & Exhibi- tion. 7:30 a.m.-3:30 p.m. May 6. Engi- neering Society of Detroit, DTE Ener- gy. There will be three tracks of educational session, an afternoon ex- ecutive session with CEOs of Michi- gan’s major companies, and more than 100 exhibitors. Rock Financial Introducing service to Mexico Showplace, Novi. $65 ESD members, $85 others. Contact: Tim Walker, (248) 353-0735, ext. 4115.

The Privilege of Making a Difference. with emphasis on the word “service.” 11:30 a.m.-1 p.m. May 8. Detroit Eco- nomic Club. Baroness Caroline Cox, Mexico’s largest airline is pleased to announce its new Detroit–Monterrey–Mexico City service*. CEO, Humanitarian Aid Relief Trust, and deputy speaker, Britain’s House of Lords. Marriott at Centerpoint, • Conduct business in Monterrey and Mexico City with punctual morning flights Pontiac. $40 members, $50 guests of • Once in Monterrey, connect to major cities with direct flights to Chihuahua, Hermosillo, Leon, members, $75 others. Contact: (313) Guadalajara and many others 963-8547. • Fly with the only airline in Mexico that travels to Central America, South America, Europe and Asia Pre-Business Research. 9 a.m.-12:30 • Enjoy unsurpassed hospitality with AeroMexico, where all beverages and delicious meals p.m. May 8. The Entrepreneur’s are complimentary for business and coach passengers Source, Oakland County’s Business Center, market resource department, and research librarian. Free, but pre- Detroit - Monterrey registration is required. Contact: (248) 858-0783. Departure Arrival Detroit 8:30 a.m. Monterrey 11:15 a.m. Eight Mile Boulevard Association Lead- ership Luncheon. 11 a.m.-1 p.m. May 9. Monterrey - Mexico City Michigan Gov. Jennifer Granholm; Wayne County Executive Robert Fi- Departure Arrival cano; Oakland County Executive L. Monterrey 12:30 p.m. Mexico City 2:00 p.m. Brooks Patterson; Detroit City Council

CALENDAR GUIDELINES Founding member of SkyTeam Alliance More Calendar items can be found on the Web at www.crainsdetroit. com. Please send news releases for Calendar to Joanne Scharich, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997, or e-mail jscharich@ *Flight Schedule: Monday, Wednesday and Friday. crain.com. You also may submit Some flights operated by AeroMexico Connect. Calendar items in the Calendar section of crainsdetroit.com. DETROIT BUSINESS MAIN 04-28-08 A 18 CDB 4/24/2008 5:14 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS April 28, 2008 PEOPLE BIOTECHNOLOGY Flagstar Bancorp and Flagstar Bank, Also, Kathleen Carollo to vice presi- ton Hills, from associate, Thomas A. dent, account supervisor, from vice Duke Co., Farm- to head of regulatory Troy. Mark Ammann IN THE SPOTLIGHT president, account supervisor, Team ington Hills. affairs, United BioSource Corp., Ann Detroit, Dearborn; David Colucci and Arbor, from global head of regulatory Audrey HEALTH CARE Joseph Pellerito Jennifer Grasso to vice president, as- affairs, Pfizer Corp., Ann Arbor. Also, Olmstead has and Mark Schafer Daniel Bonbrisco to associate vice sociate creative to senior director, regu- been named to principal, Lee LaVonne Lang president of medical affairs, DMC director, from as- latory affairs, from regulatory lead for vice president & Associates of Sinai-Grace Hospital, from chief med- sociate creative dermatologic drugs, Pfizer, Ann Ar- and chief Michigan, Novi, ical officer, Botsford Hospital, Farm- director; David bor. development from senior asso- ington Hills. Also, Mukarram Siddiqui Spencer to vice ciate. officer at Troy- to section chief of cardiovascular ser- president, associ- ENTERTAINMENT based Walsh vices, continuing as medical director ate director inter- SERVICES Nadia Mekled to director of sales and College. of electrophysiology. active media, marketing, the Compuware Arena and She replaces from associate di- Pellerito Bill Van Huis to the Plymouth Whalers, Plymouth, Rhonda LAW rector interactive chief revenue offi- from sales manager, Toll Brothers, Johnson. media; and Darin cer, American Laser Centers, Farm- Olmstead Thomas Bishoff to leader, automotive Ann Arbor. Olmstead, 50, Swan to vice pres- ington Hills, from chief revenue offi- industry team, Dykema Gossett ident, senior digi- cer, La Petite Academy Inc., Chicago. had been senior director of major P.L.L.C., Detroit, from member. Also, Spencer tal account plan- Blaine Mallat to COO and vice presi- FINANCE and principal gifts at Henry Ford Gerald Lievois to leader, automotive ner, from account supervisor, BBDO, dent enterprise operations and prod- AnnMarie Bach Health System in Detroit. industry team, Bloomfield Hills, from Troy. uct development, Jawood, Troy, from member. and Kandice Kubit She has a bachelor of science Sarah McKinney to account manager, director of operations. to associate, degree in communications and Lynn Gandhi to partner, state and local Smith-Winchester Inc., Southfield, Jennifer Tong to director, restaurant Plante & Moran English from Oakland University. tax practice group, Honigman Miller from account manager, Kass Media, food safety division, NSF P.L.L.C., South- Schwartz and Cohn L.L.P., Detroit, Ann Arbor. Also, Adrian Astrakhan to International, Ann Arbor, from health field, from staff unteer services and manager of the from principal, litigation department, vice president, senior copywriter, and safety regulatory affairs consul- member. Southeast Michigan Corporate Volun- Miller, Canfield, Paddock and Stone from senior copywriter. tant, the National Restaurant Associa- teer Council, United Way of South- P.L.C., Detroit. Gary Nustad to di- Chuck Voydanoff to president and tion, Washington, D.C. eastern Michigan, Detroit. Carole BenEzra to partner, Jaffe Raitt rector, Michigan owner, PPC Design, Novi, from opera- Michelle Kronner to senior business Robin Naudi to senior vice president Heuer & Weiss P.C., Southfield, from tions manager. Financial Compa- development manager, DPM Consult- and senior lender, First National associate. nies Inc., South- ing Services Inc., Troy, from business , Howell, from vice president and Kubit field, from vice Bank MEDIA development manager. team lender of business banking, Fifth president, private client adviser, Fifth MARKETING Doug Podell to director of rock pro- Third Bank, Southfield. Third Bank, Southfield. Thomas Bogner to vice president, gramming, WRIF-FM 101.1 and WCSX STEEL William Pickard, chairman and CEO, 94.7 FM, Greater Media Inc., Detroit, Patricia McCann to vice president and manager project management, Camp- David Rintoul to general manager of Global Automotive Alliance L.L.C., Royal Oak, remaining program direc- national civic affairs manager, Comer- bell-Ewald, Warren, from operations Great Lakes Works, United States ica Inc., Detroit, from director of vol- Detroit, to the boards of directors of tor of WRIF-FM 101.1. manager, Minacs, Farmington Hills. Steel Corp., Ecorse and River Rouge, Todd Rankin to vice president of mid- from general manager of Granite City west sales, Gas Station TV, Oak Park, Works, Granite City, Ill. from regional brand sales director, Readers Digest, Troy. TELECOMMUNICATIONS MARKET PLACE Monica Morgan Victor Mack to director of retail sales, to associate pub- Verizon Wireless, Southfield, from di- lisher, Who’s Who rector of business sales, Great Plains ANNOUNCEMENTS & FINANCIAL SERVICES TRAVEL SERVICES in Black Detroit, region, Minneapolis. SERVICES Detroit, continu- CAPITAL AVAILABLE TURN YOUR FREQUENT FLYER MILES INTO CASH ing as photogra- Buying All Airline Miles/Awards/Vouchers. pher and photo- EOPLE GUIDELINES BUSINESS SERVICES We are a flexible source of funding that American Express and all credit card points, P Starwood and hotel points. - Local 800-266-7290 journalist, may be what your opportunity needs to Monica Morgan Announcements are limited to Are Your Employees Ready For reach the next level. While we do not fund VIDEOCONFERENCE SERVICES Photography management positions. Nonprofit Work? senior/mezzanine debt or start ups, we Morgan L.L.C., Detroit. and industry group board Virtual Pro-Literacy U Can Help! have a team in place that can help tailor a Complete Videoconference Services creative capital investment to meet your Job Interviews, Legal Depositions, Business Meetings appointments can be found at Virtual Pro-Literacy University needs. Investment size ranges from $1 Convenient Troy Location, 3 Rooms, 1-200 Capacity NONPROFITS www.crainsdetroit.com. Send uses cutting edge, Midwest Video 248-583-3632 www.midwestvideo.com web-based technology powered by Aztec Soft- million to $20 million. Total committed Maurice Huey to community relations submissions for People to Joanne capital of $100 million. ware to target workforce literacy and job prepara- BUSINESS & manager, Lutheran Social Services of Scharich, Crain’s Detroit Business, tion. Our exciting, interactive learning system Please contact us via our website: Michigan, Detroit, from associate ex- 1155 Gratiot Ave., Detroit, MI gives your employees everything they need to INVESTMENTS build a successful career foundation through www.etccapital.com ecutive director, the American Can- 48207-2997, or send e-mail to client customizable training packages. Your BUSINESSES FOR SALE cer Society, Detroit branch. [email protected]. Releases employees get direct access to our certified Shamar Herron to Michigan Innova- must contain the person’s name, learning system 24/7, 365 days a year, to upgrade Successful Auto Appearance/Coating/Detailing tion Equipment Depot and Spark East new title, company, city in which LEGAL SERVICES - IMMIGRATION their job skills and increase their productivity. Shop. Profitable to Original Owner Since 1968. Incubator manager, Ann Arbor Spark, the person will work, former title, For a Free Demo, Owner retiring. Transitional Training. East Side Location. Call Mr. Stevens 313-886-1763 Ypsilanti, from research associate, former company (if not promoted Contact Pro-Literacy Detroit Today! N. Peter Antone University of Michigan, Ann Arbor. (313) 872-7720 AV-rated Immigration Attorney from within) and former city in which the person worked. Photos Adjunct Professor Immigration Law at MSU EQUIPMENT & REAL ESTATE are welcome, but we cannot CONSTRUCTION Antone, Casagrande & Adwers, P.C. MERCHANDISE 31555 W. 14 Mile Road, Suite 100 Samuel Oh to associate director, New- guarantee they will be used. CONTRACTOR Farmington Hills, MI 48334 OFFICE FURNITURE mark Knight Frank-Detroit, Farming- With Many Years Experience, Can Do All Your Phone (248) 406-4100, www.antone.com Commercial Or Residential Needs From MUST SELL, OFFICE CLOSED Demolition To Structural To Finished Work. Desks $99, Chairs $39, Files $49, Partitions $50, Call 313-530-4293 Lateral Files $99, Cubicles, Office Phone Systems MISCELLANEOUS Call (248) 548-6404 or (248) 474-3375. INDUSTRIAL SERVICES 3 MONTH LOANS ON WORTHWHILE JEWELRY TELECOMMUNICATIONS WANTED: HEALTH CARE HEROES Warehousing - Short Term Storage - Taylor MI Jason Silver Metro area / Cross Border Trucking Lew Silver Diamond Brokers LUCENT . . . AVAYA. . . PARTNER. . . Crain’s Detroit Business is seeking development of a new procedure, Freight Brokerage -Truckload & Partials 9 Mile at Greenfield MAGIX. . . VOIP. . .LEGEND . . . nominations for Health Care device or service that can save www.MRTRANSPORTATION.COM 734-946-7031 248-559-5323 MERLIN. . .SPIRIT Systems/Parts New/refurbished. Omnicall Equipment Corp. (248) 848-9282 Heroes, a special report on health lives or improve quality of life. care leaders that will WE HAVE USED PHONES ■ Physician: Honors a Nortel, Lucent, phone systems. Almost any new or run in the Aug. 11 physician whose used phone available. Expert installation available. issue. Call (248)548-6404 performance is The program will considered honor top-notch exemplary. Call Us For Personalized medical innovators Service: (313) 446-6068 and patient ■ Allied health: advocates — the inspiring Honors an individual from nursing CLOSING TIMES: Monday 3 p.m., professionals who bring new or allied health fields deemed one week prior to publication date. meaning to the word dedication exemplary by patients and peers. Please call us for holiday closing times. through their efforts to save lives or A panel of health care judges will improve access to care. FAX: (313) 446-1757 choose the winners. Nomination E-MAIL: [email protected] Our winners are chosen in four forms are available at categories: INTERNET: www.crainsdetroit.com/classifieds www.crainsdetroit.com/nominate. ■ Corporate achievement in health The deadline is May 19. Confidential Reply Boxes Available care: Honors a company that has For more information on the created an innovative health program, contact Jennette Smith, PAYMENT: All classified ads must be benefits plan or that has solved a assistant managing editor/Focus, prepaid. Checks, money order or problem in health care Crain’s credit approval accepted. at [email protected] or (313) 446- Credit cards accepted. administration. 1622. For technical questions on ■ Advancements in health care: the form, contact Jennifer Dunn at See Crainsdetroit.com/Classifieds Honors a company or individual (313) 446-6786 or for more classified advertisements responsible for a discovery or for [email protected]. DETROIT BUSINESS MAIN 04-28-08 A 19 CDB 4/24/2008 4:56 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 19 BUSINESS DIARY CONTRACTS Ricardo Inc. has established a Battery turer of custom automation systems, expanded its ValCool line of cutting been awarded Gold Status as a Vera Systems Development Center at its from Ann Arbor to 709 James L. Hart and grinding fluids, cleaners, special- Bradley dealer. The Michigan Department of Trans- Van Buren Township headquarters. Parkway, Ypsilanti, 48197. Telephone: ty fluids, additives and accessories portation, Lansing, awarded G2 Con- Ensure Technologies, Ypsilanti, an- (734) 879-2210. with six new coolants and fluids. sulting Group, Troy, an extension to Encore Energy Systems, a Brighton nounced its XyLoc network security its contract to provide geotechnical commercializer of geothermal heat ex- Civil & Environmental Consultants product has added capability to sup- services to six MDOT technical ser- changer systems, announced plans to Inc., a Pittsburgh-based engineering NEW SERVICES port authentication and network secu- vice centers in Oakland, Wayne, Ma- expand in the Caribbean. Under the and environmental services firm, has Communicore Visual Comm- rity products from DigitalPersona, Redwood City, Calif. comb, and St. Clair counties. terms of the proposal, holding compa- relocated its Detroit-area office to unications, a Birmingham video pro- 28345 Beck Road, Suite 200, Wixom, Clearzoning, Lathrup Village, an- ny Modern Technology Corp. will pro- duction and post-production studio, 48393. Web site: www.cecinc.com. nounced the Bloomfield Township vide grant funding sourced through announced the opening of a fifth Avid Board of Trustees voted for the com- Caribbean and South American gov- Adrenaline edit suite. Web site: DIARY GUIDELINES munity to become the first Platinum ernment organizations interested in NAME CHANGES www.communicore.cc. Clearzoning community in Michigan. promoting the use of energy efficient Express Personnel Services, Troy, to Margot’s Euro Spa, Birmingham, has Send news releases for Business The township’s new zoning code will technologies in the region. Express Employment Professionals. allied with Marlene Mansour to pro- Diary to Joanne Scharich, Crain’s be available online and in print. vide new laser cosmetic services. Detroit Business, 1155 Gratiot Your Useful Products L.L.C., Com- GROUNDBREAKINGS NEW PRODUCTS Ave., Detroit, MI 48207-2997 or send e-mail to jscharich@crain. merce Township, has announced its Culver’s, a Prairie du Sac, Wis.-based Fixtureworks, Fraser, now features a OTHER Spray Close Spray Extender for spray com. Use any Business Diary item fast casual restaurant chain, has bro- line of stainless steel adjustable cam Golf Digest Planner, Farmington, has cans is now nationally available as a model for your release, and ken ground at M-25 and Dutton Road in levers from Kipp. developed a Web site, www.GolfEvent through Amazon.com and Do it Best look for the appropriate category. Lake Orion. Rockford Construction is Guide.com, that allows golf event or- Hardware. It is also carried by Meijer, Forkardt North America, a Troy sup- Without complete information, your the general contractor for the project. ganizers to list their events online and Pro-Hardware and English Gardens. plier of precision work-holding prod- item will not run. Photos are ucts, has added the V-Change quick- promote them to potential players and welcome, but we cannot guarantee Ultraform Industries Inc., a Romeo pro- MOVES change jaw system to its line. sponsors. ducer of energy-efficient light fix- they will be used. tures, has entered a manufacturing Creative Automation Inc., a manufac- Valenite L.L.C., Madison Heights, has Crown House of Gifts, Ann Arbor, has agreement with Alumalight of Troy. Rand Construction Engineering Inc., a Brighton-based design and build con- struction firm, has been awarded a contract by Dick Scott Motor Mall to build an addition to its dealership in REAL ESTATE Fowlerville. Oneida Solutions Group, a Romulus- AUCTIONS INVESTMENT PROPERTY OFFICE SPACE based Native American-owned reloca- tion and installation company, an- Subdivision For Sale-Clarkston Area Private Office Space In Downtown Franklin nounced a new partnership with Absolute Auction - Milford, MI 47 Lots, Clarkston Schools, Beautiful Ready for your law firm, accounting firm, or other Relocation America, a relocation man- Call 313-530-4293 business. 1,200 square feet includes two offices with balconies, conference room, kitchenette, reception agement company. Hickory Valley Estates Auction on-site Sat May 18th at 11am LUXURY PROPERTY Preview & Registration at 10am desk, and supply closet. Call 248-865-9150 Mark Rebner, a nationally certified Bloomfield Hills "A" Office -- Window office(s) massage therapist in Berkley, has 8 Lots - Each Selling to highest bidder! Attention Investors~Must Sell available in existing law firm suite; optional secretarial teamed with Michigan Chiropractic 23 to 96E to Kensington exit, to Stobart to Hickory Valley station; includes library/conference room and kitchen; Center, West Bloomfield Township, to 3.5 mil Estate on 25 acres with private optional use of internet, fax, copier and scanner - 248-645-1450 offer therapeutic massage, cran- Call 877-696-7653 for a flyer! lake, 1 mile from St. Clair River, Built iosacral work, and other treatments. 2005 Custom Stone & Brick, One of a A secluded country development consisting of 8 wooded, rolling lots. EACH IN Kind! 9000 sq. ft., 5 bed/8 bath/gym/4 PROPERTY MANAGEMENT Broder & Sachse Real Estate Services EXCESS OF 2 ACRES! Most lots have walk-out. Get out of the tension zone! Minutes car attached, so much more. Inc., Birmingham, was awarded a con- from Kensington Park, Proud Lake, Highland State Recreation Area and the quaint shops LOW LOW TAXES! Professional Property Management tract to manage and lease three apart- and restaurants of Milford. One of Michigans prestigious builders selling remaining lots, Owner willing to lease for 2 years. ment buildings in Detroit owned by will build to suit. This exclusive subdivision consists Rose Auction Group, LLC MAKE OFFER. 586-716-0502 Condominiums/Lofts and Commercial Cadle Co. of Grassy Meadows, W.Va. of only 16 lots with homes that reflect only the bethroseauction.com Rated #1 in Service Huron-Clinton Metroparks, a regional very best. Plan on attending this incredible auction! Beth Rose, CAI Auctioneer park system in Wayne, Oakland, Ma- MISCELLANEOUS The Highlander Group, Inc comb, Washtenaw and Livingston AUCTIONS INDUSTRIAL PROPERTY Private investors with $ to lend for commercial 248.681.7883 counties, has named Berline, Bloom- a real estate projects. Call to discuss your project. field Hills, its new agency of record. Exquisite Birmingham Colonial at Pontiac, Michigan 877-361-5857 George W. Auch Co., a Pontiac general WATERFRONT PROPERTY Absolute Auction OFFICE BUILDING contractor and construction manager, May 6, 2008 at 5 p.m. Warehousing or has awarded Soil and Materials Engi- A Great Reason to Live in Michigan! Preview at 4 p.m. Manufacturing Come home to your new custom home (your plans or neers Inc., Plymouth, a contract to 5,000 to 200,000 sq.ft. Real Estate Advisors - Call us ours). Enjoy water sports and stunning sunsets. provide construction materials ser- In Brighton at HiltonPointeEstates.com vices for the construction of a medical for lease Buckingham Office Park office building for Clarkston Medical Interior Truck wells 29105-29240 Buckingham Group at the McLaren Health Care Vil- and grade level doors f67 1 block North of lage at Clarkston in Independence Schoolcraft, in Livonia 1817 Winthrop Birmingham, MI 48009 below market rates Township. Immediate Occupancy Now Leasing Community Care Services of Lincoln Features include: Over 2900 square feet of Now Leasing beautifully renovated living space in premier Park has selected Diane Martin Enter- Prime Medical & Birmingham neighborhood near Quarton 313-835-2485 prises, Farmington Hills, as its pub- General Office School. 4 bedroom, 2½ bath. Sells to highest Best deal in town! lic-relations firm of record for 2008- Suites

2009. bidder! a Enjoy lakefront strolls down the lighted ▪ 1,000 - 14,000 sq. ft. sidewalk on the prestigious Odenfront. This Bush Seyferth Kethledge & Paige ▪ Build to suit P.L.L.C., a Troy law firm, has chosen five bedroom, two bath, 2860 sq. ft. turnkey ▪ Private Entrances home with fireplace is located on the base of Tanner Friedman, Farmington Hills, FOR SALE or LEASE ▪ Large Parking lot the Inland Waterway with 100’ of Crooked to provide strategic branding, public- Premier Industrial Space ▪ Onsite Maintenance Lake frontage to enjoy water skiing and relations and marketing communica- Mark R. Elliott, J.D. fishing from your dock. Landscaped yard tions counsel and services. 248-643-4300 President with perennials, waterscape, and fenced in Valassis, Livonia, has chosen Tele At- www.elliottandcompanyauctions.com area on lakeside. Located just minutes from las of Lebanon, N.H., for digital map Erwin Tonch, CCIM Petoskey, Harbor Springs, Nub’s Nob, data for its marketing services. COMMERCIAL PROPERTIES TONCH Properties Boyne Highlands, golf courses, and Applied Manufacturing Technologies snowmobile trail. Perfect up north getaway www.tonch.com (734) 522-1200 or place to entertain guests. Call Linda Inc., Orion Township, will provide DOWNTOWN FERNDALE MULTI-USE BUILDING For sale or lease. 4,950 sq. ft. Office/Warehouse, 18400 Telegraph Rd • Brownstown, MI Jakeway, Associate Broker, Coldwell contracted implementation support Retail or Restaurant. Loading dock, private parking. Banker Northern Lakes, Alanson, MI, 49706. •92,000 SqFt Available for Shafi Inc.’s Reliabot 2-D and 3-D Vi- Call 248-388-3333 Motivated seller will look at all offers. sion Guided Robotics software prod- •Distribution Facility in Excellent Condition East Side Medical 231-548-9336. ucts. INDUSTRIAL PROPERTY •25 Truck Wells Up to 11,500 SqFt next to Henry Ford Macomb Hospital. $13.50 psf Gross, EXPANSIONS Leasing 4 Units - 12,000, 24,000, 50,000 & 106,000 •25’ to 32’ Ceiling Heights short term leases accepted. Call Us For Personalized s.f. @ Burt Indust’l Pk. (I-96/Telegraph), Very Clean, •Close Proximity to I-75 Thomson Healthcare, Ann Arbor, has Dry, Well-Maint., Docks, Truck Pkg, EZ Freeway Central Medical Service: (313) 446-6068 •85 Trailer Parking Spaces been selected by Iasis Healthcare Access. (248) 356 - 5466 Up to 32,500 SqFt Southfield, L.L.C., Franklin, Tenn., to complete For More Info Please Contact: CLOSING TIMES: Monday 3 p.m., 12 Mile/Northwestern one week prior to publication date. medical staff development planning AVAILABLE NOW Greg Hornby Lease, purchase, joint venture opportunities. Please call us for holiday closing times. for eight of its 16 acute care hospitals. [email protected] 248.324.2000 34975 W Twelve Mile Rd Kohl’s Department Stores has opened 4,000 to 100,000 sq. ft. Farmington Hills, MI 48331 West Side Medical FAX: (313) 446-1757 a new store at 47250 Michigan Ave., Also 10,000 & 25,000 sq. ft. www.friedmanrealestate.com Up to 93,000 SqFt Novi, E-MAIL: [email protected] Canton Township. Free Standing Bldgs w/truckwells. 12 Mile/Meadowbrook. Sale, lease, joint ven- INTERNET: www.crainsdetroit.com/classifieds 1 Mile from Metro Airport INVESTMENT PROPERTY ture. Full medical buildouts, immediate occu- Rice Bowl Fresh Asian Kitchen pancy, discount lease rates. Confidential Reply Boxes Available Restaurants Inc. has opened its third REA CONSTRUCTION Detroit location in the Millender Cen- LYON TOWNSHIP/BANK OWNED Please Contact Robert Moon PAYMENT: All classified ads must be (734) 946-8730 12-unit rental townhouse project available. prepaid. Checks, money order or ter. Telephone: (313) 963-3200. Get a great deal on this investment opportunity. 248.324.2000 Also Heavy Industrial Crain’s credit approval accepted. Delta Concrete & Industrial Contract- Contact Herb Lawson at 248-290-5300 ext. 302 Credit cards accepted. ing Inc., Chesterfield Township, has Land Available 8 ACRES FOR SALE opened a location at 2616 Commerce www.reaconstruction.net Zoned for 79 units senior citizen apartments. See Crainsdetroit.com/Classifieds Circle, Irondale, Ala. Web site: Waterford. Best Location. www.friedmanrealestate.com for more classified advertisements 313-530-4293 www.deltaconcrete.com. DETROIT BUSINESS MAIN 04-28-08 A 20 CDB 4/24/2008 4:56 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS April 28, 2008 Exatec sees growth through polycarbonate auto windows

BY RHODA MIEL ably could replace glass in quarter- business case for polycarbonate, CRAIN NEWS SERVICE panel windows, rear windows and said Greg Adams, vice president sunroofs. and general manager for Sabic IP’s After 10 years of tests and stud- The firm has created ways to automotive business unit. A flat ies, polycarbonate windows may add rear window defrosters and to piece of standard auto glass is finally be ready for their break- develop prototype windows for cheaper than polycarbonate. The through in the North American tailgates with two colors and inte- selling point comes as carmakers auto market. grated connections for taillight as- and suppliers realize what they John Madej, president of poly- semblies, wiring, interior trim and can do with those parts. carbonate glazing company Exatec other parts. Integrated antennas printed di- L.L.C., believes there is evi- European automakers have be- rectly on the plastic can replace ex- dence to back up gun to embrace the potential of ternal antennas. Electrolumines- his optimism. In polycarbonate, which allows them cent film built into a skylight in 2004 and 2005, to lower the weight of their cars Madej’s test vehicle — a Jeep Lib- the company re- while adding function. erty with prototype plastic win- ceived orders Now the company thinks the dows throughout — provides mood for 70 prototypes time is ripe for the North Ameri- lighting in the back of the vehicle. from automak- can auto industry to begin moving Tailgates ready for assembly with ers and their to plastic as well. In September, integrated connectors allow car- Exatec revamped its operation to makers to cut production costs. Madej suppliers. In 2006 and allow it to build parts up to 50 per- Those possibilities, as well as 2007, the Wixom-based technology PHOTO COURTESY OF EXATEC L.L.C. cent bigger than its previous pro- developing the ability to make the Exatec developed a robotic assembly program for defrosters in polycarbonate totypes — big enough for large plastic resistant to weather and company created 430 prototypes. rear windows. “This isn’t just an idea,” Madej polycarbonate roofs — and boosted scratches, were developed within said during a Feb. 29 open house at develop weather- and scratch-re- ing its plasma coating and weath- its line-speed abilities by 25 per- Exatec to make polycarbonate a vi- Exatec in Wixom to show off the sistance technology for polycar- erizing systems to auto suppliers. cent so it could provide large-scale able alternative for automakers. operations to members of the me- bonate products so the auto indus- The firm also won approval production tests. “Glass has been around in the dia, students and customers. “This try could begin using the material from the National Highway Traffic Replacing glass with plastic can auto industry for more than a hun- is an idea that’s been thought in place of glass. Now a subsidiary Safety Administration to use poly- reduce a car’s overall weight by up dred years,” Madej said. “They through. The solutions have been of Pittsfield, Mass.-based Sabic In- carbonate in all nonmoving car to 40 pounds, depending on the car. have to develop the same level of developed.” novative Plastics, the company has windows except the front wind- But a strict one-for-one glass re- confidence with polycarbonate.” Exatec was launched in 1998 to 42 employees and has begun licens- shield. That means plastic conceiv- placement will not make a full From Plastics News CAREER MOVES Wayne State legal clinic helps FINANCE REAL ESTATE

CONTROLLER Property Manager Ann Arbor based securities broker/dealer Diversified development company is seek- firm looking for a full time ing a personable, skilled real estate sales- entrepreneurs with startup basics accountant/controller. Position requires an person or broker to work full time on com- mercial projects on both the United States individual (CPA preferred) with 5 or more mainland and Hawaii. Applicant must years of accounting experience to handle have a minimum of five years related expe- BY NANCY KAFFER capacity, she said. get hands-on experience with financial preparation, reporting, and regu- rience in sales, leasing and third party man- CRAIN’S DETROIT BUSINESS Roach arrived at Wayne State in Michigan law,” said third-year stu- latory compliance. Upon hire applicant agement. required to obtain securities licenses. 2006 with the goal of getting the dent Parizad Joshi. Job requirements would include: tenant re- Michelle Butler knew she’d need tention and remerchandising, experience in clinic up and running as soon as Along with partner Joe Weiler, a Please fax resumes to 734 205-3771 or preparing budgets, financial reports, lease legal advice to transition her possible in response to the commu- third-year master of law student, contact HR at 734 663-1611. abstracts and reconciliations, solicit and ac- home-based apparel business to a quire third party management portfolio. nity’s need for free legal resources she’s written an operating agree- storefront. Additional job specifications will be dis- for small nonprofit and for-profit ment for a for-profit company and But legal advice is expensive, cussed with applicant. startups. drafted bylaws for a nonprofit, MANAGEMENT and Butler — who’s still working Please submit your cover letter, resume and “Our goal is not to compete with guiding it through the process of salary requirements to: to open her northwest Detroit the private bar,” Roach said. “We attaining tax-free status. Architectural Project Manager storefront — had limited re- The Nelson Companies Inc. want to offer an alternative to There’s no charge for the clinic’s For Texas! 6960 Orchard Lake Road, Suite 200 sources. West Bloomfield, Michigan 48322 first-stage legal fees of $200 an legal services, but clients must pay Licensed architect needed for Project That’s where Wayne State Univer- Attn: Human Resources hour or more to get established any filing fees associated with Mngr position. Fast-paced/demanding sity’s Small Business Law Clinic came position; requires extensive exp. in draw- or [email protected] and run a business.” business the clinic transacts. ing, client service and vendor relations. in. Must be able to monitor/oversee project Only those resumes with interest will be The services the clinic offers are Most clients, Roach said, are contacted. “Did I have the right documents & ensure timely completion. 10+ yrs exp. basic and don’t extend to litiga- able to resolve their legal needs for this business as far as insur- w/Arch/Eng or construction firm reqd. tion. Most, Roach said, are early within the span of the semester. Excellent comp/bene pckg. ance, (liability from) lawsuits, things of that nature that I was formation work. Kevin Butts of KS Credit Educa- See www.pbk.com. Reply to CRAIN’S EXECUTIVE “Should I form a limited liabili- tion Solutions L.L.C. had been in [email protected]. concerned about, anything that RECRUITER WORKS! had to do with legal aspects of ty corporation, an S-corp, sole pro- business for about four years starting a business,” she said. prietorship?” she said, ticking off when he contacted the clinic. Students from the Wayne State some basic questions business “We were obviously growing University Law School helped Butler owners might ask. “We would help and we were shifting from a part- draft an operating agreement and establish a legal entity for them nership to an L.L.C.,” he said. reviewed lease documents for her and file papers with the state, pre- Having the L.L.C. designation, building, she said, as well as apply pare any corporate governance he said, added credibility to his for a trademark for her store materials.” business when pursuing larger name, Turning Headz Apparel. When Roach says small, she clients. Butler is one of about 28 entre- means it. The businesses the clin- “It was an invaluable service,” preneurs the clinic has helped ic sees tend to have five or fewer Butts said. since opening in January 2007, employees, and many are owner- Wayne State, Roach said, is fo- said Dana Roach, clinical assistant or owner-and-spouse operated. cused on growing the region’s professor of law at Wayne State. Business owners must apply to small-business economy. The clinic can help eight clients the clinic, Roach said, and are “The Michigan economy has in a 13-week semester, but with 30 paired with a two-member student been ailing for a while, and part of applicants for the current semes- team. Each team works with a for- the reason is lack of diversity,” she ter alone, Roach said there’s an profit and nonprofit business. said. “Small businesses create the even greater need for startup legal Most of the clinic’s clients are in most new jobs, and creative entre- services than her students are able Detroit. preneurs need the resources to to deliver. Students say working with the successfully create new jobs.” Next semester, another profes- clinic is an invaluable experience. Nancy Kaffer: (313) 446-0412, sor will join the clinic, doubling its “It’s a wonderful opportunity to [email protected] DETROIT BUSINESS MAIN 04-28-08 A 21 CDB 4/25/2008 5:18 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 21 Michigan middle-market execs not as optimistic as peers in Ohio, Ill.

BY TOM HENDERSON sponse in one category: abundance Just 21.7 percent of Michigan re- CRAIN’S DETROIT BUSINESS of engineering talent. In Michigan, spondents said access to water was MICHIGAN LAGS IN OPTIMISM 24.5 percent agreed it was a a strength, compared to 30.3 per- A survey of owners and execu- strength, compared to 21.8 percent cent in Ohio and 34.6 percent in A survey of executives of middle- agreed, compared with 23.1 tives of middle-market companies in Illinois and 17.4 percent in Ohio. Illinois. Tourism was seen as a market companies in Michigan, percent in Illinois and just 9.1 in Michigan, Illinois and Ohio by The number of categories that strength by 16.7 percent in Illinois, Illinois and Ohio by Southfield- percent in Michigan. Southfield-based Plante & Moran got more than a 50 percent re- 7 percent in Michigan and 4.6 per- based accounting firm Plante & On whether the tax structure P.L.L.C., which was to be released sponse as perceived strengths cent in Ohio. Moran P.L.L.C. found that was an asset: 24.4 percent in today, found enough good news it were seven in Illinois, four in Ohio Hermann said he thought the re- Michigan respondents appear to Illinois agreed, compared with is titled Recognizing Optimism in and two in Michigan. The two that sults reflect weariness with the be less optimistic than their peers 14.7 percent in Ohio and just 6.3 Uncertain Times. got more than 50 percent response state economy. on several issues. percent in Michigan. But across a broad range of cate- in Michigan were the availability “People in Michigan are a bit Here are three examples of how On whether the strong work gories, Michigan respondents were of a skilled workforce and for a worn down. It’s been a tough two Michigan veered from the rest of ethic of workers was an asset: less optimistic than their peers. strong local work ethic. or three years. … They’re not feel- the group: 74.4 percent in Illinois agreed, “It’s not even close to all doom Hermann said two results sur- ing as positive as they should,” he On whether supportive compared with 72.5 percent in and gloom,” said Bill Hermann, prised him: Michigan respondents said. government was an asset: 23.9 Ohio and 51.7 percent in Plante & Moran’s managing part- didn’t perceive either tourism or Tom Henderson: (313) 446-0337, percent of respondents in Ohio Michigan. ner. “Two-thirds said they were access to water as strengths. [email protected] optimistic, compared to 55 percent last year. When you see that kind of response, it gets your attention. You ask ‘Why?’ There’s a pretty healthy middle-market economy.” More than two-thirds said they were very or somewhat optimistic about the future of their compa- nies. In Plante & Moran’s first Midwest study in the fall of 2006, >CB:3AA4C3:7<G=C@B/<9 that figure was 55.9 percent. Broken down by state, the num- bers for optimism were 67 percent /<2;=@3;=<3G7<G=C@E/::3B of respondents in Ohio, 70 in Illi- nois and 66 in Michigan. Across the region, executives 5C/@/4=@B6316/::3<535=B= in Ohio and 51.7 in Michigan. 7

Page 22 CRAIN’S DETROIT BUSINESS April 28, 2008 Senate panel chief may trim Blues bills provisions

BY JAY GREENE for consumers who are dropped by market bills from Blue Cross and said David Crosby, president of the lion, that would be considered an CRAIN’S DETROIT BUSINESS insurers and cannot find afford- groups representing consumers, Michigan Association of Health Plans. emergency” in which the Senate able insurance. labor, small businesses, senior cit- “This state is looking at change and Legislature should take imme- The Senate Health Policy Committee Allow Blue Cross to gain rate izens, the disabled, competing in- without any comprehensive re- diate action. is expected Wednesday to vote on hikes more quickly with retrospec- surance companies and HMOs. view. The individual market is George wants a three-year study four controversial bills that seek to tive review by the attorney gener- Except for Blue Cross and its al- sound. … Blue Cross is not in dis- on the individual market in lieu of reduce premium rates and expand al and the Office of Insurance and Fi- lies, most groups oppose the indi- tress. Why do it?” a high-risk insurance pool, which access in the individual health in- nancial Regulation. vidual market reform bills, H.B. In the hearing last Thursday, surance market and give a for-profit Blue Cross said is essential to in- Embark on a three-year study 5282 and 5283. George pressed Blue Cross execu- clude in legislation. workers’ compensation insurance to determine the growth and prob- “Does (the proposed legislation) tives about the current size of the subsidiary of Blue Cross Blue Shield “There is no need for a high-risk lems with access and affordability make health care more affordable? individual market and anticipated pool that would give Blue Cross re- of Michigan the of the state’s individual insurance Our analysis says that it does not,” growth over the next five years. right to enter lief for (selling) individual poli- market. said Tameshia Bridges, senior pol- Blue Cross has said that the in- cies. This makes no sense,” said other insurance Sherry Sophia, George’s chief of icy analyst with Health Care for dividual market accounts for 6 per- Crosby, who also is president of lines. staff, said he will offer opportuni- Health Care Workers of Michigan, a cent of total policies written in 200,000-member HealthPlus of Michi- But in re- ties for other senators to offer coalition that represents 100,000 Michigan, or about 400,000, but is gan, a nonprofit HMO based in sponse to testi- amendments or additions to his health care workers. expected to grow to 25 percent over Flint. mony the past proposed legislation. Bridges said the Senate should the next five years. Mark Cook, the Blues’ vice presi- two weeks, Sen. “He is more interested in areas reject the House bills. She ex- At the hearing, Paul Austin, the Tom George, R- of agreement but is not sure we pressed limited support for the Blues’ chief actuary, said the 25 dent of legislative affairs, said he Kalamazoo, who can do that,” she said. substitutes advanced by George, percent figure includes the state’s understands why commercial in- George chairs the com- Through chief of staff Norm Sar- and also with H.B. 5284, which growing numbers of uninsured, surers do not want a high-risk pool. mittee, said last week that he may ri, Sen. Jason Allen, R-Traverse deals with the Blues’ Accident Fund which is estimated at about 1.2 “I understand their motiva- drastically reduce the number of City, who has his own substitute Insurance Co. of America. million. tion,” he said. “It is in their busi- provisions in the proposed legisla- legislation, said he is committed to Allen’s substitute bills are sup- Without the uninsured, Austin ness interests to fight against it. tive package. championing a high-risk insur- ported by the Blues and two small- said, the individual market may Aetna and United Healthcare are While Blue Cross opposes elimi- ance pool, which the Blues support business groups, the Small Business grow to 10 percent or 12 percent. bigger than Blue Cross (on a na- nating major portions of the pro- and contend is essential to provide Association of Michigan and the “If the growth in the individual tional basis). Their motivation is posed legislation approved last Oc- access to those people with serious Michigan Business & Professional As- market is from 400,000 to 500,000, to not want to cover these high- tober in the House, George said he and costly medical conditions. sociation. that is one thing that maybe you risk individuals.” is inclined to push for the following: Last week, George’s committee “Most states do an exhaustive study,” said George. “But if you Jay Greene: (313) 446-0325, Focus on stronger protections heard testimony on the individual study before passing legislation,” are talking about growth to 2.5 mil- [email protected] UM biotech spin-off to get $2 million Bankruptcy court to review Jomar Building’s cash assets

BY ROBERT ANKENY for biodegradable implant polymers CRAIN’S DETROIT BUSINESS U.S. Bankruptcy Court Judge Walter Shapero has sched- BY TOM HENDERSON Hollister, an associate professor of surgery and a professor uled a May 29 hearing on the status of cash assets for De- CRAIN’S DETROIT BUSINESS of biomedical engineering and mechanical engineering at troit-based Jomar Building Co. Inc., which filed a voluntary UM; Dr. Steven Feinberg, an associate professor and oral Chapter 11 bankruptcy petition April 2. Wisconsin-based Venture Investors L.L.C. will announce this and maxillofacial surgeon at UM; Dr. Frank LaMarca, an as- The top 20 creditors listed by Jomar in its filing for week that it has agreed to invest $2 million in Tissue Regener- sistant professor in the department of neurosurgery and a bankruptcy protection are owed more than $2 million, ation Systems Inc., a biotech spin-off from the University of spinal surgeon at UM; and William Murphy, an assistant including $660,000 to the U.S. Internal Revenue Service, Michigan that makes biodegradable polymers for spinal im- professor of biomedical engineering at the University of $322,600 to Comerica Bank, and almost $266,000 to three plants and facial reconstruction. Wisconsin, whose coating technology promotes bone Detroit law firms whose claims the builder shows as The deal is a poster child for the state’s two thrusts at in- growth. “disputed.” vesting in emerging high-tech — the $109 million 21st Centu- Prior to the deal with Venture Investors, the company President and CEO of Jomar is Odell Jones III, a long- ry Investment Fund and the $95 million Venture Michigan Fund. had raised about $500,000 in university and foundation When those funds were announced in 2006, officials with time Detroit businessman and builder who in 2006 was grants and investments by the founders. chairman of the Greater Detroit Chapter of the Associated the Michigan Economic Development Corp. said that invest- Adox, the acting CEO, already has hired one Ph.D., General Contractors. ments would not be restricted to Michigan venture-capital Rachel Schek, and has made an offer to another. Both got Jomar was involved in a joint venture with St. Louis- and private-equity companies. They said they wanted to their doctorates at UM, had left the state to take jobs and based Alberici Constructors USA for work on the Book broaden the capital available to local companies by invest- wanted to come back. Schek had worked on the technology Cadillac restoration while a subsidiary of Kimberly-Clark ing in large out-of-state investment companies, too, but that as one of Hollister’s students. Corp. Historic Hospitality Investments L.L.C., was the devel- those companies would be required to open local offices and Adox is looking at several Ann Arbor locations to open of- oper on the project. Jomar and Alberici dropped out in hire people to run them. fice and lab space. Currently the company uses UM facili- December 2003, and Historic Hospitality withdrew from A modest number of jobs would be created immediately. ties. the project in January 2004. And, the theory went, those offices would be staffed by peo- Paul Weiss, a managing director in Venture Investor’s ple familiar with local entrepreneurs and tech-transfer offi- Madison office, said the big market opportunity is a Jones is seeking to reorganize his company under cials at universities who could efficiently vet investment op- biodegradable scaffolding that fosters bone growth that will bankruptcy court protection, Jomar attorney Robert portunities that would quickly lead to new companies and address problems with the titanium implants that now dom- Reed said. He declined further comment and neither he more new jobs. inate the market. nor Jones called Crain’s back before deadline Friday. In January 2007, the state announced that Venture In- “Titanium is incredibly strong, so other bone around it Last Thursday, Shapero ordered Fifth Third Bank to vestors was one of two companies, along with Nth Power of becomes weaker than the implant. It creates degenerative turn over all Jomar funds it held on deposit “by issuing a San Francisco, to get the first funding from the Venture problems,” he said. stop payment order of the check issued to the IRS and Michigan Fund, an undisclosed amount believed to match The polymer is combined with Murphy’s coating. The immediately issuing a replacement check” for $124,563. the $10 million Venture Investors got in March 2007 from the hope is that by the time the polymer scaffolding, or cage, is Shapero’s order said he would determine at the May 21st Century Investment Fund for the firm’s fourth and absorbed by the body after a year, new bone will have taken 29 hearing “whether any sanctions will be assessed largest fund of $117 million. its place. against Fifth Third Bank, and, if so, the amount, for any Venture Investors had a successful track record of invest- The $2 million will fund further clinical tests on spinal willful violation” of the judge’s earlier order and refusal ing in early stage spin-offs, primarily at the University of Wis- implants in pigs. If those tests mirror the good results of pre- to turn over assets to the bankruptcy estate. consin. It hired Jim Adox to open the Ann Arbor office, hav- liminary animal tests so far, Venture Investors will be Phone calls for comment from Fifth Third Bank and to ing co-invested with him when he was a partner at Ann ready to raise a larger second round of funding, possibly in the assistant U.S. attorney representing the IRS were not Arbor-based EDF Ventures. One successful deal was in a UM partnership with other venture capitalists. returned Friday. spin-off called IntraLase Corp., which moved to California in “We think by then we’ll be pretty far down the path to- The Office of the U.S. Trustee for Bankruptcy said no cred- 1998 and went public in 2004. ward commercialization,” said Weiss. itors committee has yet been formed. At the time, Adox was consulting with Tissue Regenera- Venture Investor’s first investment in Michigan was in Chapter 11 of the Bankruptcy Code provides for reor- tion, having been asked by the tech-transfer office at UM to March 2007 when it invested $750,000 in another UM spin- ganization of a corporation or partnership, with the evaluate the commercial possibilities of a biodegradable off, Ann Arbor-based Incept BioSystems Inc., which makes debtor proposing a plan of reorganization to keep its polymer that could serve as a scaffolding for growing tissue. microfluidic devices for the in vitro fertilization industry. business alive and pay creditors over time. The company was co-founded in January 2006 by Scott Tom Henderson: (313) 446-0337, [email protected] Robert Ankeny: (313) 446-0404, [email protected] DETROIT BUSINESS MAIN 04-28-08 A 23 CDB 4/25/2008 5:18 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 23 Signs: More traffic boards, cameras part of national trend ■ From Page 3 will eventually come down. Sweatman predicted it would Transportation’s Research and Innov- The signs will carry messages cost $10 billion to eventually de- ative Technology Administration. about traffic conditions, construc- Federal spending on deploying ITS ploy the vehicle-based systems. The conflict is that limited fund- tion, weather warnings and acci- The federal government will spend ing forces municipalities to choose dents. technology to all 50 states was $650 million $110 million this year on intelli- between projects such as new “We’re transferring to a better gent transportation system work, lanes and other physical improve- technology,” said Michelle from 1998 to 2005. About $28 million of but only for research and develop- ments and the less visible intelli- Mueller, the MDOT transportation ment. gent transportation system infra- engineer for the project. “It’s more that went to Michigan. Federal spending on deployment structure, Sweatman said. robust.” of ITS technology to all 50 states “A lot of jurisdictions have a de- MDOT is upgrading its ability to pull it all together to provide wire- and braking monitors and other in- amounted to $650 million from cision to make: Put money into ITS use its equipment by switching to less communication between the ternal sensors. The goal is to reduce 1998 to 2005, but Congress chose or build another lane,” he said. ethernet connections, which will vehicle and infrastructure,” he accidents by using information not to reauthorize new deployment “People don’t necessarily see the speed up and modernize its com- said. broadcast by the vehicles and col- funds. About $28 million of that benefit because they don’t see munications systems. There are The vehicle systems, called vehi- lected by computers that would al- was allocated for Michigan, said what’s being done.” currently 180 cameras and 65 mes- cle infrastructure integration, in- ter timing on traffic signals or other Paul Feenstra, director of public Bill Shea: (313) 446-1626, sage boards for the 865 miles of clude anti-collision systems, speed measures to prevent crashes. affairs for the U.S. Department of [email protected] roads that MDOT manages in metro Detroit. The signs, cameras and traffic sensors are monitored and con- trolled at an MDOT facility on De- troit’s Howard Street. The Michi- gan State Police also staffs the facility, watching for accidents on the wall of video monitors. Traffic- related 911 calls also come into the center. Local news media also have ac- cess to the cameras for traffic re- ports. The project is being paid for with Federal Highway Administration funds specifically earmarked for traffic congestion mitigation, with the goal of reducing emissions to improve air quality. The signs and cameras are con- sidered intelligent transportation system technology, which quali- fied MDOT for the congestion fund money. Federal funds specifically for intelligent transportation sys- tem infrastructure were halted in 2005. Transportation insiders say there’s not enough money to build, expand or improve Michigan roads as they need to be, but intel- ligent transportation systems tech- nology helps. “Additional communication and coordination for traffic operations allows us to use whatever capacity we do have in a more efficient and effective way,” said Carmine C2N-FT-TPS4 MT-1000C TPMC-8X TPS-4000L Palombo, director of transporta- 3.6” FlipTop Touchpanel MiniTouch 1000 Handheld Isys i/O™ 8.4” Isys 10.4” Wall Mount tion planning for the Southeast Control Center Wireless Touchpanel WiFi Touchpanel Touchpanel Michigan Council of Governments, a regional planning agency that em- At AVI-SPL, we carry the high-quality, cutting-edge audio video phasizes transportation issues. Palombo sits on the board of the equipment you need to enhance communication and improve Michigan chapter of the Intelligent Transportation Society of America, a productivity. With more than 40 years of experience and the latest nonprofit trade group that’s been ® advocating advanced technologies technologies, like our full line of hard-working Crestron touchpanel for road systems since 1991. Mem- control systems, we can help you make a statement before saying bers include governments, au- Thursday, May 29 8:00am – 4:30pm tomakers, technology companies, Find out more at avispl.com/events/ a single word. universities and transit groups. An ITS trade show and confer- ence, sponsored by the Michigan ITS chapter and MDOT, is sched- Whether it’s your boardroom, conference room or training facilities, uled for next month in Novi. “Michigan DOT has been a look to AVI-SPL for integrated audio video solutions that will leader among these systems na- tionally,” said Peter Sweatman, di- capture your audience’s imagination and streamline the exchange rector of the University of Michigan Transportation Research Institute in of information. Ann Arbor and president of the Michigan ITS chapter. Automakers — including the 248.669.4286 • www.avispl.com Detroit 3, several foreign manufac- turers and MDOT — are testing ve- 2605 East Oakley Park Rd. hicle-based sensor systems on I-96 and I-275 near Novi that would Walled Lake, MI 48390 work in conjunction with other technology, Sweatman said. “Now we’re seeing a big effort to DETROIT BUSINESS MAIN 04-28-08 A 24 CDB 4/25/2008 5:17 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS April 28, 2008 Boating: New boat sales, slip rentals drop across the state ■ From Page 3 tistics from Secretary of State Terri Lynn out around $2,900. The looming threat to boating, Mahoney Land’s office. MICHIGAN BOATING FACTS Mike Litt, the new owner of Detroit’s said, is the price of energy. With fewer boats on the water, the insur- Kean’s Marina, on the Detroit River, said re- Costs at the pump are creeping up, and ance industry also is feeling the crunch. Michigan exempts the following watercraft cently that his 340 slips, starting around marina gas prices tend to exceed auto fuel from registration: “Boat policies are down more than 5 per- $1,700 a season, were about 65 percent rent- by at least 50 cents a gallon, industry profes- cent this year,” said Nancy Cain, public re- Ⅲ Watercraft 16 feet or less, propelled by ed, and he’s looking for an occupancy rate sionals say. That doesn’t necessarily bode ill oars or paddles and not used for rental or AAA Michigan lations director of . commercial purposes. above 80 percent by the start of summer. for marina owners. Some marinas don’t sell AAA doesn’t release dollar amounts, she In past years, he said, the marina’s occu- gas, and for many, like Mathes, gas sales are Ⅲ Nonmotorized canoes and kayaks not said. used for rental or commercial purposes, pancy rates have ranged between 80 percent a small percentage of business income. “My perception is that recreational boat- rafts, surfboards, sailboards and swim floats, and 100 percent. Boats average about a mile per gallon, ing is in one of the most difficult situations regardless of length. “We didn’t buy this business because it’s Mathes said, with boat tanks ranging widely in terms of the economic climate as it has Ⅲ Watercraft registered in another state and a marina,” said Litt, who bought the busi- in size. been in a long time,” said Ed Mahoney, the used only temporarily in Michigan. ness in January. “We looked at nine or 10 These days, Mahoney said, fuel accounts Marine Research Center’s other co-director. businesses in Southeast Michigan, and it for about one-third of the expenses of the av- “In 2001, the industry started to recover, Sales of new powerboats, new outboard was the best business we looked at.” erage boat trip. His organization didn’t but we had issues with consumer confi- motors and some aftermarket accessories Semo Post, general manager of Jefferson track such figures in past years, but he says dence. Then we had credit issues, and there in Michigan: Beach Marina in St. Clair Shores, said his fa- that’s a significant increase. have been a series of economic issues that 2006: $495 million cility’s roughly 800 slips are about half rent- Some industry professionals say rising have repressed (the economy) when we 2005: $525 million ed, and he expects 70 percent to 80 percent fuel prices will likely change most boaters’ thought there was going to be a recovery.” 2004: $526 million occupancy by mid-May. use patterns, not drive them out of the wa- But is Michigan’s boating industry scut- That marina recently changed hands. ter. Mathes notes that unlike other recre- 2003: $584 million tled? Post has served as general manager for less ational vehicle users, Michigan boat owners There’s some good news. With new boat Source: Jim Petru of the Michigan State University than a year and said he couldn’t provide in- can travel short distances and reach open sales declining, the used boat market has re- Recreational Marine Research Center and the National formation about past years’ occupancy water. mained strong, industry insiders say. Marine Manufacturers Association. rates. “Maybe this isn’t the year you take that “Everybody wants a deal right now,” said This year, a slip at Jefferson Beach starts long cruise up to Mackinac Island,” said Greg Ricardi, owner of Platinum Yacht Sales said, has come primarily from small-boat at $840 and goes up to $6,000. Post said rates Van Snider, president of the Livonia-based on St. Clair Shores’ Nautical Mile. Platinum owners. Large-boat owners still need an an- were slightly lower than last year’s. Michigan Boating Industry Association. “People is a brokerage company that deals strictly in chorage to call home. At Harbor Hill Marina in Detroit on the De- are being conservative in their use of fuel used boats. “If people have a choice to store in their troit River, CFO Jack Robson said he expects and may not spend as much time out on the Local sales are up 15 percent over the first garages or maybe trailer their boats, they 80 percent of Harbor Hill Marina’s 370 slips to water … but most people are not going to let quarter of 2007, said Ricardi, who also said will do so to save money,” he said. “For the be rented by May 1, priced from $1,500 to the price stand in the way of something they some boat owners have lowered prices to bigger boats, our well occupancy rate is sta- $5,500. truly enjoy.” sell quickly. ble.” “We have been fuller, but we’re still pretty Nancy Kaffer: (313) 446-0412, The decline in marina business, Mathes Slips at Emerald City start at $800 and top happy,” he said. [email protected].

Ford: Lawsuit settled for $1M Fund: OU Inc. gets $30M ■ From Page 3 ■ From Page 1

It’s one of the last details in the convoluted le- Richard’s wife and Gail’s mother, and that “You read the headlines and they’re million to $5 million and to loan the gal drama that has attended the closure of the Richard Duncan would remain a consultant to all bad, but we’re seeing a lot of great fund $300,000 in formation expenses. Sterling Heights dealership, once among the the dealership. opportunities for deals right now.” Plymouth Management announced dealerships with the highest in sales volume in Bankruptcy for Jerome-Duncan followed close Bund was recruited to Michigan last year that it would launch a second the nation. on the heels of a 2005 Ford Motor Credit audit from Hawaii in 1976 by Herbert Doan. fund, called Plymouth Venture Partners Gail Duncan’s legal troubles began in 2003 that found the dealership in default. Doan, who died in 2006, was the for- Fund II L.P. In July, Plymouth Manage- when her father and one-time partner, dealer- In the business of vehicle sales, dealers pay mer chairman of The Dow Chemical Co. ment got a $75,000 loan from the Ann ship founder Richard Duncan, filed suit in Ma- automakers once a car is sold. If a dealer doesn’t and the Dow Foundation and was con- Arbor-based Michigan Venture Capital comb County Circuit Court against Gail Duncan have cash on hand to pay for sold vehicles, the sidered by many the godfather of VC Association, as part of the state’s 21st and TejPaul. business is deemed out of trust, in automotive in Michigan. Century Jobs Fund, to help defray start- Richard Duncan’s suit alleged that Gail Dun- Bund founded Plymouth Manage- up costs for the new fund. parlance. can and TejPaul, who is also known as S.K. Paul, ment in 2003. While there and at pre- Plymouth Venture Partners Fund I L.P. Libbey said such audits are routine. Gail Dun- had mismanaged the business, using Jerome- decessor companies, he has helped has raised about $20 million and has can said that the condition was temporary, Duncan funds to finance other investments, in- take 34 companies public. made 23 investments. cluding four metro Detroit import dealerships caused by the rising amount of vehicle rebates He is also co-founder of Innovation Horne said fundraising will begin and a handful of nonautomotive California prop- and a lag time between vehicle sale and receipt Capital Ltd., an Australian investment in earnest now that an agreement has erties. of rebate funds from Ford’s promotions division. firm that brings Aussie technology to been reached with OU. Gail Duncan said her father didn’t like the di- “It was only about a day and a half worth of U.S. markets. “Ian’s out there today. He’s calling rection she and TejPaul were taking Jerome- business,” Gail Duncan said. “Someone over at Bund’s new VC fund at OU will in- on three investors,” said Horne last Duncan in and didn’t want to let go of the busi- Ford Credit got antsy about the lackadaisical vest in growing Michigan companies, Thursday. “We have some soft commit- ness. way these things were happening.” including OU Inc. tenants that are ments, but we wanted to hold off until “My dad and I saw different approaches on Gail Duncan also maintains that two letters generating revenue and ready to we got approval from the trustees. taking the business into the future,” she said. written by Richard Duncan to Ford Motor Co. re- make the transition from on-campus We’ll be signing up investors now.” “He’s definitely an authoritative person — he garding his lawsuit against her that were en- startups to off-campus stand-alone He said Plymouth decided to focus wants things my way or the highway.” tered into court evidence as part of that suit companies. The incubator will pro- on growth-stage companies rather than Gail Duncan said she thought her father were instrumental in triggering the audit. vide staffing and back-office support. startups in the second fund because would be pleased when the import dealerships “It was startling,” she said. Plymouth Management will pay for there is less risk of failure and a short- started showing profits. Hauck said the letters were a courtesy, writ- at least the equivalent of one full-time er time to realizing a return on invest- Attorney Mark Hauck of Dykema Gossett PLLC, ten by Richard Duncan so that Ford wouldn’t staff person to run an office at the OU ment via a sale or a public offering. to whom Richard Duncan deferred questions, learn about the lawsuit through the media. incubator. Horne said having a VC firm serv- said Gail Duncan and TejPaul had violated an In 2004, the dealership had retail sales of more As the fund invests in area compa- ing that niche provides a natural pro- agreement made when Gail Duncan became ma- than $243 million, according to court records. nies, OU hopes to leverage those in- gression for companies that are grad- jority shareholder of the dealership in 1993. But by fall of 2005, the dealership was losing vestments into student internships, uating from the incubator. And the A Macomb County court found in Richard post-graduation employment and re- incubator will be able to attract more $800,000 a month, as reported in Automotive Duncan’s favor, awarding him $4 million and search contracts for professors, ac- companies when they realize there’s a News. finding that Gail Duncan’s purchase of the for- cording to David Spencer, the incuba- path available for them as they grow. The dealership was reportedly sold in 2006 to eign dealerships violated a noncompete agree- tor’s executive director. “We are excited about the opportu- ment and constituted shareholder oppression. Troy’s Suburban Collection for $14.8 million. The tentative agreement calls for nity to provide support to the invest- Gail Duncan is appealing that verdict, accord- In the e-mailed statement, Libbey wrote that the fund to invest between $500,000 ment fund,” said Spencer. “Capital is ing to attorney Michael Gibbons of Bloomfield the court’s verdict gives Ford Credit the right to and $2 million in either debt or equity critical for early-stage companies who Hills-based Beier Howlett P.C. file liens against Duncan and TejPaul’s proper- in growth companies. Those compa- are accelerating into growth-stage de- The jury was barred by the judge from consid- ties in Michigan and California and said the nies are defined as having revenue velopment.” ering a number of other allegations in the suit court has appointed a limited receiver to oversee and approaching the point where they He said the incubator has nine com- that Hauck said were part of an oral agreement efforts to sell or refinance the properties to pay are cash-flow positive. panies in residence and is affiliated between Gail and Richard Duncan — that the the judgment. The school and Plymouth Manage- with five other off-campus companies. dealership would maintain a contract with an Nancy Kaffer: (313) 446-0412, ment are seeking a lead investor in Tom Henderson: (313) 446-0337, then- insurance company owned by Barbara Duncan, [email protected]. the fund to make a commitment of $2 [email protected] DETROIT BUSINESS MAIN 04-28-08 A 25 CDB 4/25/2008 6:06 PM Page 1

April 28, 2008 CRAIN’S DETROIT BUSINESS Page 25

Cities: Detroit, Dearborn to improve plants www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- New Model Quality Center, which of modifications that we think Ford funded the renovations in 0460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 446- opened last December in the his- would be satisfactory,” he said. part through a $208 million invest- 0402 or [email protected] toric Ford Rouge Center. “But it’s still subject to any other ment dedicated to the Rouge Cen- ASSISTANT MANAGING EDITOR/FOCUS Jennette Marathon is hoping to obtain an concerns that may come up during ter’s Dearborn Truck Plant and to Smith, (313) 446-1622 or [email protected] BUSINESS LIVES EDITOR Michelle Darwish, (313) air quality permit from MDEQ for the public comment and public the 2009 Ford F-150 product launch. 446-1621 or [email protected] its refinery project and begin con- hearing process that we may have Angie Kozleski, manufacturing COPY DESK CHIEF Gary Piatek, (313) 446-0357 or [email protected] struction by the end of the second to consider.” communications manager for Ford, GRAPHICS EDITOR Nancy Clark, (313) 446-1608 quarter, said communications Meanwhile, Dearborn will see declined to reveal an exact total but or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 manager Chris Fox. the completion of $1.01 billion did say that a past figure of $2 bil- or [email protected] If all goes well and construction worth of investment to modernize lion for improvements to the center DATA EDITOR Anne Marks, (313) 446-0418 or [email protected] begins on time, the refinery expan- the Severstal North America plant going back to 2000 is “inclusive” of WEB GENERAL MANAGER Alan Baker, (313) 446- sion could be completed by the by some time in 2009, said compa- the Quality Center project. 0416 or [email protected] WEB EDITOR Kevin Hill, (313) 446-0473 or fourth quarter of 2010. Much of the ny communications director The MEDC reports that Ford re- [email protected] expansion will be devoted to refin- Katya Pruett. ceived a tax credit in 2006 for fu- WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) ing heavier Canadian crude oil Four of six modernization pro- ture investment in the property, 446-0403, [email protected] RESEARCH ASSISTANT Joanne Scharich, (313) from regions like Athabasca Oil jects at the plant are now com- including the Quality Center, but 446-0419 Sands Project in Alberta, where plete, Pruett said, and a $32 million the “first year of eligibility is 2008 EDITORIAL SUPPORT Anita Duncan, (313) 446-0329 Marathon has a 20 percent owner- project to upgrade the plant’s hot (and) Ford has not yet collected on NEWSROOM (313) 446-0329, FAX (313) 446- ship stake. strip mill reheat furnace reached this credit.” 1687 TIP LINE (313) 446-6766 Shaffner said the addition of a completion in January. Bridget Beckman, MEDC public REPORTERS coke plant will enable the refinery But the two remaining projects information officer, said the state Robert Ankeny: Covers the city of Detroit, Wayne County government, and law. (313) 446-0404 or to process oil from the Canadian will involve the largest investment expects to get a report from Ford in [email protected]. tar sands. The process is now more PHOTO COURTESY OF SEVERSTAL NA by Severstal, at a combined $600 the latter half of the year on its Ryan Beene: Covers auto suppliers, steel. (313) economically viable as a source of million. growth and investment and 446-0315 or [email protected] A newly rebuilt blast furnace at Sherri Begin: Covers nonprofits and services. gasoline because of higher crude Severstal’s facilities. They include a new coupled whether it has met the benchmark (313) 446-1694 or [email protected] prices. Daniel Duggan: Covers real estate and hospitality. pickle line and tandem cold rolling to obtain that credit. (313) 446-0414 or [email protected] “It’s a very strategic opportuni- mill — which uncoils and cleans Jennifer Giering, president of Jay Greene: Covers health care, insurance and the $3 BILLION INVESTMENT environment. (313) 446-0325 or ty for Michigan and the Detroit re- steel in acid baths and prepares it the Dearborn Chamber of Commerce, [email protected]. gion,” he said. “That oil reserve in Industrial sites in southwest for cold rolling — and a new hot- said it was unlikely recent invest- Chad Halcom: Covers education, non-automotive manufacturing, defense contracting and Oakland Canada is around 179 billion bar- Detroit and south Dearborn could dipped galvanizing line to provide ments by Ford or Severstal would and Macomb counties. (313) 446-6796 or rels.” see more than $3 billion in about 500,000 tons of steel sheets lead to long-term job growth or [email protected]. redevelopment by 2009-10. Tom Henderson: Covers banking, finance, Canada ranks No. 2 in the world for automotive applications. new industries cropping up in technology and biotechnology. (313) 446-0337 or in oil reserves, behind Saudi Ara- Pruett said it is still being deter- south Dearborn, but the city has [email protected]. Marathon Petroleum Co. L.L.C.’s bia. mined how modernization will af- grown in recent years and the re- Nancy Kaffer: Covers small business and retail. Detroit Heavy Oil Upgrade Project (313) 446-0412 or [email protected]. The expansion project will in- fect the number of jobs at the Dear- tained jobs stabilize that growth. Bill Shea: Covers media, advertising and Ⅲ Project: The project will expand marketing, entertainment, the business of sports, crease Marathon’s processing ca- born plant, but the Michigan “We look at ways to retain tradi- production capacity at Michigan’s and transportation. (313) 446-1626 or [email protected]. pacity from about 102,000 barrels only oil refinery. Economic Development Corp. project- tional (manufacturing) jobs, to en- of crude per day to 115,000 barrels, ed in 2005 that some $45 million in courage entrepreneurship, build Nathan Skid: Multimedia reporter. Also covers Ⅲ Estimated cost: $1.9 billion. theh food industry. (313) 446-1654, which translates to more than state and local tax incentives for the appeal of our university (Univer- [email protected]. Ⅲ Completion date: Targeted by 400,000 gallons of fuel per day. the expansion would help the com- sity of Michigan-Dearborn) and his- LANSING BUREAU fourth quarter of 2010. Amy Lane: Covers business issues at the Capitol, Marathon also plans to add about pany retain more than 2,000 jobs. toric neighborhoods,” she said. telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or 60 full-time employees and 75 full- Severstal North America Inc. “Our ultimate success will be “But as a city, we also look at ways 115 W. Allegan, Suite 220, Lansing 48933. time permanent contractors as Ⅲ Project: Modernization projects based on (being) able to retain and to modernize and offer new ameni- ADVERTISING part of the expansion, with about at the former Rouge Steel Inc. attract the very best people. We ties.” ADVERTISING DIRECTOR Marla Downs, (313) 800 temporary construction jobs facilities in southeastern Dearborn. need world-class people to operate Dearborn’s population grew 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) over the duration of the project. Ⅲ Estimated cost: $1 billion. world-class equipment,” said a more than 2 percent since 2000 to 393-0997 Paul Schleusener, senior engi- Ⅲ Severstal statement about the top 100,000 sometime in 2006, ac- ADVERTISING SALES Jeff Anderson, Terri Completion date: Sometime in Engstrom, Matthew J. Langan, Tamara Rokowski, neer specialist at MDEQ, said 2009. modernization. cording to data from the Southeast Cathy Ross, Dale Smolinski Marathon’s permit application Severstal’s plant property takes Michigan Council of Governments. WESTERN ACCOUNTS Ellen Mazen (Los Angeles) Ford Motor Co. New Model Quality (323) 370-2477 could be approved 25-30 days after up much of the southern half of the “When gas is $3.50 a gallon, who CLASSIFIED MANAGER Melissa McKay, (313) the public hearing if the request Center former Rouge complex grounds, wants to drive anywhere?” she said. 446-1692 Ⅲ Project: Conversion of the former CLASSIFIED ACCOUNT EXECUTIVE Greg follows the typical approval where the automaker established “We’re finding at least some peo- Evangelista, 313-446-1655 process. Dearborn Glass Plant into a the separate Rouge Steel Inc. in the ple who have moved out to a MARKETING DIRECTOR Michelle Minor The company submitted a re- vehicle-testing and employee- 1980s. On the remaining Ford Northville or Plymouth before are EVENTS MANAGER Nicole LaPointe training facility for the F-150 vised application for the permit in grounds, the automaker has wanting to move back now. They MARKETING ASSISTANT Jennifer Dunn product line. MARKETING ARTIST Sylvia Kolaski March, with changes involving the opened its New Model Quality stay closer to work, maybe closer Ⅲ Estimated cost: Partly funded by SALES SUPPORT Suzanne Janik, Andrea control of refinery flares and car- Center for testing and employee to the grandkids or their friends, Beckham, YahNica Crawford $208 million Ford investment. bon monoxide emissions. training related to the launch of its and keep their expenses down.” CIRCULATION Candice Yopp, Manager. Ⅲ Completion date: Opened PRODUCTION MANAGER Wendy Kobylarz “They’ve proposed and submit- new F-150 pickup model starting in Chad Halcom: (313) 446-6796, December 2007. PRODUCTION SUPERVISOR Larry Williams, ted an application with a number 2009. [email protected] (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information Center at [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. Nonprofits: Some pay board members thousands CHAIRMAN Keith E. Crain PRESIDENT Rance Crain SECRETARY Merrilee Crain ■ From Page 1 TREASURER Mary Kay Crain Executive Vice President/Operations “We are more like a corporation-run board,” cation organization NSF International pays board bringing her earnings to $65,000. Of the nearly William A. Morrow Group Vice President/Technology, said Amy Coleman, vice president of finance. members between $25,500 and $26,880 for two to 60 organizations included in Crain’s nonprofit Manufacturing, Circulation Coleman said expectations of board mem- three hours of service per week, according to salary report, Bauder received the most com- Robert C. Adams Vice President/Production & Manufacturing bers “are similar to a business culture, where Form 990 filings with the Internal Revenue Ser- pensation of any board member. Dave Kamis compensation of board members is common.” vice. Trustee Charles Depew earned $40,288 as But Bauder, as well as the rest of the Skill- Corporate Director/Circulation Patrick Sheposh Nonprofit board pay can the board’s chair. man trustees, has the option to receive compen- G.D. Crain Jr. Founder (1885-1973) sometimes be justified, said Anna Schmitt-Reichert, director of corporate sation or to donate the money to a nonprofit of Mrs. G.D. Crain Jr. Chairman (1911-1996) Kyle Caldwell, president and communications, said NSF seeks trustees with her choice, according to Hanson. EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) CEO of the Lansing-based skills similar to those found in boards of direc- Trustees Lizabeth Ardisana, Ralph Babb, Ed- 446-6000 Michigan Nonprofit Association. tors in the for-profit sector. sel Ford II and Robert Taubman opted not to re- Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out of “It’s not an automatic, but “NSF compensates its board in order to at- ceive compensation for sitting on the board. state, $79 one year, $138 for two years. Outside sometimes boards do need to tract prospective board members who have the The remaining six trustees received between U.S.A., add $48 per year to out-of-state rate for surface mail. compensate board members skills and experience required to provide guid- $7,500 and $40,000 for serving, making the total Reprints: For inquiries call the reprints department depending on the expecta- ance to (the organization),” she said in an e- amount paid to the board $204,000, according to at: (800) 494-9051, Ext. 144 , or at tions they have of board mem- mailed response. the foundation’s 2006 tax return. [email protected] CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Caldwell bers,” Caldwell said. Compen- Another organization that compensates Other nonprofit organizations that compen- published weekly except for a double issue the second week in August by Crain Communications sation of board members board members is the Detroit-based Skillman sate board members are the Altarum Institute, Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. “should be a policy the board reviews every year Foundation. Skillman trustees receive $1,500 per Oakwood Healthcare Inc., Trinity Health Corp., and Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address to make sure it’s still relevant.” board meeting as well as a $5,000 retainer for National Association of Investors Corp. changes to CRAIN’S DETROIT BUSINESS, Circulation “The nonprofits understand (the trustees’) the year, according to communications direc- Blue Cross Blue Shield of Michigan Foundation Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. time is valuable,” he said. “They’re serving on tor Bill Hanson. trustees receive between $10,750 and $22,955 to Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. the board to bring value to their nonprofit.” Trustee Lillian Bauder received an extra serve on the board, according to Form 990 fil- Reproduction or use of editorial content in any Ann Arbor-based product safety and certifi- $25,000 for serving as the board’s chair in 2006, ings from 2006. manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 04-28-08 A 26 CDB 4/25/2008 6:02 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS April 28, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF APRIL 19-25

tion reports with the elec- fice of the State Employer, ef- Crain named to Michigan State Senate tions bureau, the Associat- fective May 19. She had Drew’s Journalism Hall of Fame ed Press reported. been deputy director for the Some business and com- Michigan Department of Labor Crain Communication Inc. munity leaders have been and Economic Growth. Chairman Keith Crain and approves tax four others were inducted contributing to such a fund Sunday into the Michigan to help underwrite Kil- OTHER NEWS departure Journalism Hall of Fame at breaks for patrick’s legal expenses. the Kellogg Center on the Wayne County Circuit Attorney General campus of Michigan State Judge Robert Columbo Jr. on Michael Cox sent a fax on University. business Friday released dozens of Thursday night to Dan Crain was pages of e-mail messages Loepp, president and CEO of rocks WRIF he state Senate on “honored between lawyers represent- Blue Cross, asking him to t might not be panic in In the meantime, the for his Tuesday approved ing Kilpatrick and former explain by June 2 whether Detroit, but very likely morning show has been re- leadership T tax breaks for small- city police officers who the company violated state I there’s at least nervous- billed “Mike in the Morn- and and medium-sized compa- filed the suit working out fi- laws by purchasing a for- ness at WRIF 101.1 FM. ing.” Lane, meanwhile, fearless nies, the Associated Press integrity nal details of the $8.4 mil- profit insurance company Detroit morning talk ra- continues to develop a reported. and lion settlement in the De- for one of its subsidiaries. Under the measure spon- dio’s ratings behemoth concept for a new syndi- courage in troit whistle-blowers’ case, Cleveland chef Michael “Drew & Mike” was a cash cated show, an afternoon insisting sored by Sen. Nancy Cassis, the Associated Press re- Symon’s new restaurant, cow for WRIF owner Greater drive-time program in his publica- R-Novi, businesses whose ported. “Michael Symon’s Roast,” Media Inc., reportedly ac- which he pairs with Jim tions cover owners or officers make up Crain will open on the ground counting for up to 85 per- McBride. their to $250,000 would qualify floor of the Book-Cadillac Ho- cent of the annual revenue, Will Lane’s yet-to-be- industry with hard-hitting, for a 1.8 percent adjusted Michigan may get VW plant tel in October. in-depth articles, often estimated most recently at named show air here? No business income tax as an Volkswagen AG said Richard Anderson, CEO $19.9 million in 2006. one will say, but radio insid- breaking news both in alternative to the Michigan print and online,” Wednesday it has narrowed of Delta Air Lines Inc., which But show co-founder Drew ers doubt it would be on Business Tax. The thresh- according to a news its list of states competing seeks to acquire Northwest old is now $180,000. Lane is gone after 16 years WRIF. A logical spot might release. for a potential U.S. produc- Airlines Corp., said that do- in what some say is one of be competitor WKRK 97.1 FM, The bill also would ex- Detroit-based Crain tion facility to Alabama, mestic airlines need to pand a credit aimed at help- the city’s more public radio owned by CBS Radio and now Communications Michigan and Tennessee, raise fares by 15 percent to divorces since Dick Purtan airing mostly sports talk. publishes more than 30 ing fast-growing business- the Associated Press re- 20 percent to break even at left WXYZ 1270 AM and col- weekly titles, including es. Companies could claim ported, and will make its fi- current fuel prices. laborator Tom Ryan in 1978. DSO to be led by robot Crain’s Detroit Business, the entrepreneurial credit nal decision this summer. Centex Corp. said Co-host Mike Clark and Automotive News and equaling 100 percent of If it decides to open a Wednesday it plans to pull Advertising Age. other on-air personalities Thomas Wilkins will step their MBT liability instead plant, the company expects out of the Detroit area. The remain and have said they aside briefly from conduct- Joining Crain in this year’s of only the portion of their to start building cars with- company, which has built class were: plan to carry on the show. ing the Detroit Symphony Or- MBT liability attributable in two years and produce 4,400 homes here since 2001, to increased employment. Station management re- chestra May 13 to allow a Tim Skubick, veteran between 100,000 and 150,000 will complete work on sold political reporter in To qualify, businesses mains mostly silent. new conductor on stage — vehicles annually with a homes that are in the Lansing and host of the would need to hire eight “This is every radio sta- the humanoid robot Asimo. capacity of 250,000. The process of being built and tion’s worst nightmare. The DSO is hoping Hon- weekly “Off the Record” workers and invest $500,000 public affairs program on company says the first ve- continue the sale of homes. This is a big deal,” said Dick da’s Advanced Step in Inno- down from the 20 workers public television. hicle would likely be a re- The trial of attorney Kernen, a 50-year veteran of vative Mobility and its con- and $1.25 million invest- Norm Sinclair, longtime placement for the Passat. Geoffrey Fieger and his part- the local radio industry and ducting of the orchestra as ment currently required. Detroit News and WJBK-TV ner Ven Johnson began The bills have been sent vice president of industry it performs “Impossible 2 reporter and a 2003 Thursday, the Associated to the state House. Contract approved for relations at Southfield- Dream” to open a concert finalist for the Pulitzer Press reported. They are ac- Specs Howard School Yo Yo based with renowned cellist Prize Gold Medal for Public Tiger Stadium demolition cused of making $127,000 in of Broadcast Arts. Ma will draw attention to Service. American Axle tells illegal contributions to John its nationally acclaimed On Tuesday, the Detroit Greater Media brass last Richard Mayer, retired Edwards’ 2004 presidential youth music programs. Economic Development Corp. week accepted the resigna- illustrator and art director suppliers to get ready campaign. for the Detroit Free Press approved a demolition con- tion Lane tendered Dec. 3 American Axle & Manufac- Organizers of a $371 while on leave since Sep- and cover artist for Ward’s tract for Tiger Stadium Marriott gets new logo Automotive. turing Holdings Inc. told its with MCM Management Corp. million project to build a tember to tend to an ailing suppliers Friday to prepare light-rail line along Wood- The Detroit Marriott at the Roberta Applegate, first of Bloomfield Hills and De- girlfriend. It was the on-air to resume production, Auto- ward Avenue from down- Renaissance Center has a full-time female Capitol troit-based Farrow Group Inc. watercooler topic on WRIF motive News reported. town Detroit to the State new logo in an effort to dis- reporter for the Associated Unclear is whether the and garnered much ink Press during the 1940s. Fairgrounds began meeting tinguish its brand. The American Axle corporate lower level of the long-va- from the Detroit Free Press Monday with the backers of company added a swooping The late Charles Hughes, communications manager cant stadium from dugout and The Detroit News. founding editor of the a privately funded plan silhouette of the Renais- Renee Rogers said the notice to dugout will be preserved, Tom Baker, WRIF’s inter- Detroit Athletic Club News, with similar goals. Norman sance Center to the back- was a “routine letter” sent with the Old Tiger Stadium im general manager, de- was honored with a White, the city of Detroit’s ground of its existing Mar- to remind suppliers to be Conservancy still vowing to clined to comment directly, special recognition award. CFO, said Monday he’ll riott logo. ready once production re- raise about $369,000 to save instead saying the station sumes. She said “it’s not an the playing field and the meet with unnamed busi- was more concerned with women to be honored by indication of anything be- Michigan Avenue- ness leaders who want to the death of general sales BITS & PIECES the Michigan Women’s Foun- yond that.” Cochrane Street corner. spend $103 million to con- manager Bob Kozaitis, who U.S. District Judge dation’s annual Women of Work could start next struct a light rail line. was killed in a traffic acci- Denise Page Hood, Arab Amer- Achievement and Courage Giles will hear mayor’s case month, said Scott Veldhuis, BAE Systems expects to dent Tuesday morning. ican and Chaldean Council Awards Celebration. The project manager of the De- hire 460 people and invest “We lost a colleague this President and CEO Haifa Southeast Michigan dinner Mayer Morganroth, lawyer troit Economic Growth Corp. $58.4 million in an expan- week, and we’re all think- Fakhouri and activist Bea is Thursday at the Rock Fi- for Christine Beatty, said that staffs the EDC. He said sion for its land and arma- ing about that,” Baker said. Sacks are among the nancial Showplace in Novi. Thursday 36th District Court Detroit City Council has ments operating group in Judge Ronald Giles will hear the final say on whether the Sterling Heights after ob- the perjury case against her entire stadium is razed. taining tax credits of $22.1 and Detroit Mayor Kwame The demolition partner- million over 14 years Tues- Kilpatrick, the Associated ship will tear down and re- day from the Michigan Eco- You can profit from our online nonprofit coverage Press reported. move the entire stadium ex- nomic Growth Authority. Morganroth said that cept the “corner” at no cost, Our special report on nonprofit listings from the Michigan Nonprofit Chief Judge Marylin Atkins in exchange for the right to OBITUARIES compensation starts on Page 1 of Association. You can sign up for the has denied a prosecutor’s sell the scrap metals, esti- this issue, but it continues on Page free newsletter at motion to disqualify Giles. mated to be worth at least Christy Bradford, former 11 and on the Web. www.crainsdetroit.com/getemail. Giles has contributed $300 $1 million. managing editor of The De- There’s an expanded version of the During the week, you can always to a Kilpatrick campaign. However, the companies troit News, died of a pul- report available for purchase at our check www.crainsdetroit.com/ Prosecutor Kym Worthy will pay the DEGC $300,000 monary embolism April 24. online data center. At nonprofits for the latest nonprofit said she will appeal the de- if allowed to tear the whole She was 65. www.crainsdetroit.com/lists, you can stories, lists, jobs and events and cision. Also: Sandra Harville, who find information about more than 200 peruse our photo galleries from the stadium down. had owned the Detroit Brew organizations in Michigan. charity scene with reports by A bill before the Senate Campaign and Election Over- Factory in Harper Woods As we do in print, Crain’s follows Business Lives columnist Julie Yolles. nonprofits closely on the Web. Every Are we missing anything? Take a look sight Committee Wednesday ON THE MOVE and the Park Winery in Thursday, we also round up the most WEB WORLD at this week’s special report and our would require legal defense Grosse Pointe Park, died of pertinent items in our Nonprofit Kevin Hill coverage online, then send feedback funds to file statements of Sharon Bommarito will pancreatic cancer April 17. Newsletter. This e-mail also includes job to [email protected]. organization and contribu- become director for the Of- She was 60. DETROIT BUSINESS MAIN 04-28-08 A 27 CDB 4/25/2008 1:56 PM Page 1 DBpageAD.qxd 4/25/2008 11:13 AM Page 1

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