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http://www.crainsdetroit.com Vol. 22, No. 40 OCTOBER 2 – 8, 2006 $1.50 a copy; $59 a year

©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved THIS JUST IN Grand Prix Redico buys former Compuware HQ Redico L.L.C. was in the process of closing Friday on the purchase of the for- return revs mer Compuware Corp. headquarters in Farmington Hills. Redico plans to lease a large portion of the building at 31440 Northwestern Hwy. to Trott & Trott P.C., a tourism push law firm focused on residential mortgage foreclo- sures, bankruptcy and related specialties. Trott & Events drive momentum Trott President and CEO REBECCA COOK David Trott confirmed the BY BRENT SNAVELY Workers at U.S. Steel’s Great Lakes Works plant in Ecorse walk through the building where CRAIN’S DETROIT BUSINESS deal late Friday. molten iron is converted to giant steel slabs that weigh 25 tons or more. The complex, built in As news leaked out Thursday that the Grand Prix 1987, includes the 190,000- would be returning to Detroit, six cruise ship representa- square-foot headquarters tives were meeting with the Detroit Metro Convention & Vis- and a more than 40,000- itors Bureau to showcase Detroit as a potential port for ad- square-foot annex with ditional Great Lakes ships to dock. health club, cafeteria and Although those executives have not yet made any deci- day-care center space. sions, the bureau said the timing of the Grand Prix an- Trott said the law firm nouncement was perfect. and affiliated businesses “This just demonstrates that there are positive, excit- plan to move in next spring ing things taking place and this is just another example and will use the annex. The of that,” said Michael O’Callaghan, executive vice presi- firm has an equity stake in dent and COO of the bureau. the deal as well, he said. This is the first group visit by cruise industry mem- “It’s a great building,” Trott said. Trott & Trott’s See Prix, Page 33 current headquarters is at 30400 Telegraph Road in New investment, recovering steel industry buoy Bingham Farms. The property was likely Great Lakes Works, but union, community disputes still loom to sell for less than $20 million, said Steve Morris, BY BRENT SNAVELY ■ Significantly re- principal at GVA Strategis in CRAIN’S DETROIT BUSINESS INSIDE duced the plant’s acci- Game plan Southfield. Previous nego- dent rate while in- ■ Efforts at Great tiations to sell the head- ince taking over Great Lakes Works creasing production three years ago, U.S. Steel Corp. has Lakes Works quarters had it valued at control, eliminate by more than 56 per- S breathed life into a steel plant that cent. Firms have too few tickets, about $23 million, he said. pollution. Dale Watchowski, presi- was slowly dying under the strained fi- Page 32. U.S. Steel also has dent and CEO of Redico, de- nances of its previous owner by increas- ■ Dearborn- completed a number too many ‘friends’ clined to comment. ing production and investing in plant re- based Kenwal of smaller projects, Compuware vacated the pairs. plans two such as pouring a Pittsburgh-based U.S. Steel acquired processing former headquarters for its concrete floor in one BY TOM HENDERSON the 1,100-acre Great Lakes Works in centers in the new $400 million down- of the steel plant’s AND BILL SHEA Ecorse and River Rouge, as well as other South. Page 32. town Detroit headquarters buildings and paint- CRAIN’S DETROIT BUSINESS in mid-2002. steelmaking assets previously owned by ing a number of walls. — Jennette Smith bankrupt National Steel Corp., in May 2003 It also has begun putting a new inventory “Tiger fever” is not a feline as part of a $1.1 billion deal. system in place. strain of Asian flu, but it is an Since then, Great “We took an idle facility, we re-estab- affliction that could manifest Wayne State doctors, DMC Lakes Works General lished the production of steel out of this itself this continue contract talks Manager Fred Jauss facility, we have steadily improved the ECONOMIC week in De- said, U.S. Steel has: productivity over the three-year period troit. ■ Eleventh-hour negotia- Decided earlier and currently are running at the highest HOMER By now, tions between Wayne State this month to begin a productivity levels that have ever been the Detroit Tigers University physicians and $30 million project to Potential achieved from a two-blast furnace opera- $71.1M know when and The Detroit Medical Center refurbish its hot strip tion (at Great Lakes Works),” Jauss said. boost to where they’re play- aimed at beating an Oct. 1 mill. Even so, differences with the union Detroit, ing in the post-sea- Ticket to game: contract update deadline ■ Spent about $64 and legal battles with the community re- Page 31. son. Last week, $35-$110; for the Accreditation Council million to install new however, the lack reschedule catered Jauss main. Other challenges also persist. U.S. lunch: $100; for Graduate Medical Educa- air filters and environ- of certainty was wreaking at least Steel continues to battle a class-action temp to cover work tion last week produced a mental equipment to comply with a Feb. lawsuit in U.S. District Court in Detroit minor planning havoc for those phones: $200; 14, 2005, consent order with the Michigan holding tickets for games one See This Just In, Page 2 Tigers in the Department of Environmental Quality. See Steel, Page 32 See Tigers, Page 33 playoffs: Priceless.

House Party brings many CRAIN’S LIST to Detroit neighborhoods, Largest business insurance

NEWSPAPER Page 3 agencies, Page 16 DETROIT BUSINESS MAIN 10-02-06 A 2 CDB 9/29/2006 6:54 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 2, 2006

offices in Chicago, Farmington New Detroit basketball team Martinez will direct Comeri- Gross managing principal and THIS JUST IN Hills, Cleveland and Washington ca’s Hispanic business and com- CEO, succeeding Thomas Ernst, that provides valuation and liti- to have tryouts this weekend munity outreach. She joined the who is continuing as chief strate- ■ From Page 1 gation advisory services and in- Detroit is getting another in- bank after 10 years at Ford Motor gy officer. Ernst has led the firm Co. vestment-banking services. carnation of an American Basket- , where she had been commu- since 1982. — Brent Snavely nity relations program manager joint letter assuring ongoing ball Association team this fall, with Gross also is president and and liaison of Hispanic communi- talks, but no contract. the Detroit Panthers, owned by for- founder of Cornerstone Advisory The two sides reported that ty relations. Oakland Commerce Bank CEO mer Lion NFL quarterback Char- Group and president of The Alterna- “good-faith negotiations between Martinez replaces Enrique lie Batch, planning to host 18 tive Board-Detroit, positions he will the parties are in progress and Carrillo, who left the bank in take VP job at Fifth Third games in the River Rouge High maintain. will continue until an agreement May to become group vice presi- School gymnasium. is reached,” Donna Dauphinais, Rob Naudi has joined South- dent at Bethesda, Md.-based Chevy Ernst will be focused on map- medical school Dean Robert field-based Fifth Third Bank Eastern Previous Detroit ABA teams Chase Bank. ping the firm’s expansion into Mentzer’s chief of staff, said in an Michigan after 11 months as presi- since the old ABA merged with — Tom Henderson new markets and services out- e-mailed statement. dent and CEO of Farmington the NBA in 1976 have included side of Southeast Michigan. Ford The council had demanded the Hills-based Oakland Commerce the championship Detroit Dogs Ford & Earl names CEO & Earl has practices including ar- update as part of a review that Bank, an affiliate of Lansing- coached by George Gervin in chitecture, interior design, mar- could shut down of Wayne State’s based Capitol Bancorp Ltd. 2000-2001, and more recently the Troy-based design firm Ford & keting, graphics and exhibits. 69 residency programs. Naudi will be vice president 2004-2006 Detroit Wheels. Earl Associates has named Tom — Jennette Smith — Michelle Martinez and leader of the bank’s western A Panthers free-agent tryout Oakland County small-business camp is scheduled for Friday, ORRECTIONS Grant Thornton to buy lending team, which focuses on Saturday and Sunday in the Wee- C unit from Stout Risius Ross companies with up to $10 million ber Gym at 1411 Coolidge, River ■ The photographer’s credit was omitted from the 40 Under 40 fea- of revenue. The bank has five Rouge. For information call ture in the Sept. 25 issue. The photos were taken by Glenn Triest. Chicago-based Grant Thornton small-business teams in South- Willie Donwell at (248) 645-2276. ■ An editorial on Page 8 of the Sept. 25 issue should have said that the L.L.P. is planning to announce to- east Michigan. The home schedule isn’t set yet Engineering Society of Detroit was a co-founder of the Da Vinci Awards day that it has acquired Stout “Being president of a small although a pair of home-and- with the Michigan chapter of the National Multiple Sclerosis Society. Risius Ross Inc.’s Farmington ■ bank was a great opportunity, but home games with the Benton Lisa Yarema’s last name was spelled incorrectly on Page 19 of the Hills-based Restructuring & Per- I’ve got a better fit at a bigger Harbor-St. Joseph Twin City Ballers Sept. 4 edition. formance Improvement Group. ■ bank,” said Naudi, who before shows up on the ABA schedule The name of Environmental Design + Construction magazine publisher Grant Thornton said in a me- joining Oakland Commerce was for Dec. 9 and Dec. 16. Ticket BNP Media was spelled incorrectly on Page 18 of the Sept. 25 edition. In dia advisory that it plans to form Diana Brown in small-business lending with prices are to be $10. the same story, ’s first name was spelled incorrectly. a new global automotive team ■ In a story on Page 21 of the Sept. 25 issue, Martin Manna should Troy-based LaSalle Bank Midwest. — Robert Ankeny that will be jointly led by Kimber- have been given the title of executive director of the Chaldean Amer- “Being president, I discovered ly Rodriguez, a principal of Grant ican Chamber of Commerce. The story also should have said that the over time it wasn’t what I en- Thornton L.L.P., and Nigel Rud- Comerica names new VP chamber is a separate entity from Interlink Media, The Chaldean News dock, a partner in Grant Thornton joyed. ” for Hispanic business affairs and the Chaldean Community Cultural Center. UK L.L.P.’s recovery and reorgani- Rick James, vice president of ■ An article on Page 1 of the Sept. 25 edition misstated an affiliation zation team and a leading expert bank performance for Capitol’s Comerica Inc. announced Fri- for Signature Associates. The real estate brokerage left the Oncor In- within the automotive sector. eastern division, is Oakland day afternoon that it had hired ternational network and is now an alliance member of Cushman and Stout Risius Ross Advisors L.L.C. Commerce’s interim president. Monica Martinez as vice presi- Wakefield. is a financial advisory firm with — Tom Henderson dent of Hispanic business affairs. DETROIT BUSINESS MAIN 10-02-06 A 3 CDB 9/29/2006 6:46 PM Page 1

October 2, 2006 CRAIN’S DETROIT BUSINESS Page 3 Oakland trip CRAIN’S to woo medical Execs put pen to INDEX Branching out: Comerica close to bringing in majority of revenue from firms starts to outside of Midwest. Page 11. Mourning after: Co- paper for project workers learn to cope show results when colleague dies. Page 19.

BY ANJALI FLUKER AND MICHELLE MARTINEZ Letter campaign CRAIN’S DETROIT BUSINESS Oakland County economic-develop- hopes to bring ment officials and William Beaumont Hospitals are starting to get inquiries from a joint effort at wooing medical- in big retailer device makers to the county. Cass Cafe: Midtown BY SHEENA HARRISON restaurant serves up food The county and Beaumont this with a side of art. summer had 18 meetings in Sweden, CRAIN’S DETROIT BUSINESS Page 21. known as a hotbed for the life-sci- A number of high-profile community leaders are These organizations appear in this ences industry, Deputy County Exec- lending their support in an effort to help attract an an- week’s Crain’s Detroit Business: utive Dennis Toffolo said. County offi- chor tenant for The Shoppes at Gate- cials supplied the business case, Adell Bros. Children’s Trust ...... 14 way Park in Detroit, a proposed Andiamo Restaurant Group ...... 20 using Beaumont Research Institute 325,000-square-foot retail center GATEWAY PROJECT Automation Alley ...... 28 Director David Felten to bolster its Beaumont Hospitals ...... 3 near the Michigan State Fairground in The Shoppes at Gateway Park in Detroit would be a Butzel Long P.C...... 14 case with its strong foundation of Detroit. 325,000-square-foot shopping center near the Michigan Caponigro Public Relations ...... 19 clinical study. Cass Café ...... 21 Executives such as Penske Corp. State Fairgrounds at the southeast corner of Eight Mile Since the trip, two Swedish med- Center for Automotive Research . . 28 and Downtown Detroit Partnership Road and Woodward Avenue. Charfoos & Christensen P.C...... 32 ical-device makers have followed up CJPS Enterprises L.L.C...... 3 Chairman Roger Penske; Heaster with the county, expressing interest “Knowing my involvement in Detroit and support- Comerica Inc...... 11, 33 Wheeler, executive director of the Community Central Bank Corp. . . . 13 in Beaumont’s clinical research, said Deloitte & Touche ...... 13, 33 National Association for the Advance- ing new business in Detroit, there’s no reason I would- Toffolo, who declined to name the Delphi Corp...... 3, 30 ment of Colored People in Detroit; and n’t support this initiative,” Penske told Crain’s in an Detroit Chamber ...... 6 companies. Detroit Diesel Corp...... 25 Penske Detroit Free Press Publisher David interview Friday. The county and hospital hope to re- Detroit Econ. Growth Corp...... 29 Hunke have written letters to help persuade a national Gov. Jennifer Granholm has spoken on the phone Detroit Free Press ...... 3 cruit more life-science companies as Detroit Tigers ...... 1 retailer to look at the site, according to copies received with a major retailer to convince the company to take part of the county’s Emerging Sectors Detroit/Wayne County Port Auth. . . 33 by Crain’s. See Gateway, Page 29 DMCVB ...... 1 program, launched in 2004 to help di- Doeren Mayhew & Co. P.C...... 13 versify the economy. Downtown Detroit Partnership . . 3, 33 Dura Automotive Systems ...... 4 The efforts likely will mean success Ernst & Young L.L.P...... 13 for the rest of the Detroit area as well, Fifth Third Bank ...... 33 Flagstar Bank ...... 13 if government, Gallagher Benefit Services ...... 16 businesses, entre- GE Healthcare ...... 31 General Growth Properties Inc. . . . 29 preneurs and scien- General Motors Corp...... 29 tists can similarly Great Lakes Works ...... 1 Greenleaf Trust ...... 13 collaborate, Michi- Detroit’s party HandyLab ...... 31 gan Economic Devel- Heller Machine Tools L.P...... 25 Hyman Lippitt P.C...... 14 opment Corp. CEO ITC Holdings Corp...... 4 Jim Epolito said. JGA Inc...... 29 Oakland County, Residents open Keller Williams West Bloomfield . . . 19 Kenwal Steel Corp...... 32 meanwhile, has a KPMG L.L.P...... 13 KWWIK Enterprises L.L.C...... 14 strong pitch, said Macomb Community College . . . . . 28 Epolito Jeff Jenkins, a part- homes to show off MAG Industrial Automation ...... 25 Matt Prentice Restaurant Group . . 28 ner with the manufacturing consult- MEDC ...... 3 ing practice with Plante & Moran Mesquite Creek Steakhouse . . . . . 20 living in the city Mich. Mortgage Brokers Assoc. . . . 11 P.L.L.C. in Southfield. Michigan Chamber ...... 6 Southeast Michigan has five large Michigan State Fairground ...... 3 Miller Canfield ...... 33 health care systems that can act as BY MICHELLE MARTINEZ Moceri Cos...... 30 testing ground and market base for AND TOM HENDERSON Guests at Crain’s Detroit House Party mingled Model D ...... 31 device manufacturers, pharmaceuti- MSHDA ...... 31 CRAIN’S DETROIT BUSINESS at a home on Boston Boulevard (below), which, Munder Capital Management . . . . 11 cal, chemical, biotechnology and oth- like other homes on the tour, featured intricate NAACP ...... 3 er health-care-related companies that Touring Pam Rodgers’ Shore- woodwork (left). Afterward, Matt Mullan, Lori NextEnergy ...... 28 Novi Expo Center Inc...... 14 locate here. And it boasts a large base pointe Village home was a light- Heinz, Brad Dick, Matt Didio and Angela Nucor Corp...... 32 of highly skilled automotive design- bulb moment for Timothy and Topacio-Didio met at GM Wintergarden (above). PEAC Mechanics ...... 19 Penske Corp...... 3 ers and engineers, skills that are Kristine Jahn. Plante & Moran P.L.L.C. . . . . 3, 13, 25 transferable to a medical device com- “I’ve never seen anything (new) PricewaterhouseCoopers ...... 13 PrivateBank of Michigan ...... 12 pany, he said. in Detroit,” Timothy Jahn said. Quicken Loans/Rock Financial . . . 29 The county already has attracted at “I’m really surprised,” he added, Rains Group ...... 16 pointing to the panoramic view of Rock Financial Showplace ...... 14 least one new business in this indus- SeverCorr L.L.C...... 32 try: former Delphi Medical Systems downtown, Belle Isle, Windsor, Severstal North America ...... 32 Peche island and Lake St. Clair Shoppes at Gateway Park ...... 3 Managing Director Christophe Sev- SME ...... 28 rain earlier this year left the Delphi from Rodgers’ patio. “The thing is, U.S. Steel Corp...... 1 nobody even knows this is here.” UHY Advisors MI Inc...... 33 Corp. spinoff to set up CJPS Enterprises United Way for SE Michigan ...... 31 L.L.C. in Bloomfield Hills. Jahn, an architect who lives in Valassis Communications Inc. . . . . 33 Macomb Township, and his wife Visteon Corp...... 4 Sevrain six years ago established Whitney, The ...... 20 his management-consulting practice were touring Rodgers’ home as part for medical device and life sciences of Crain’s House Party, a two-part BANKRUPTCIES ...... 13 manufacturing companies in Chica- event on Thursday that included 35 BRIEFLY ...... 10 go. But he moved his headquarters to homes across the city with one big CAPITOL BRIEFINGS ...... 6 Southeast Michigan because of the re- bash at the end at the Renaissance CLASSIFIED ADS...... 26 CHRISTOPHER CRAIN . . . . . 8 gion’s opportunities for growth in the Center’s Wintergarden. Crain’s initially expected about LETTERS ...... 8 health care industry, he said. MARY KRAMER...... 9 Dave Berge, managing director of 500 people to sign on to tour indi- OPINION ...... 8 Troy-based Delphi Medical, said the vidual homes to learn more about PHOTOS BY GLENN TRIEST RUMBLINGS...... 34 region’s highly skilled workforce was neighborhoods as diverse as Cork- WEEK IN REVIEW ...... 34 a major factor in winning him over to town, Sherwood Forest and Indian Village. But the tally had reached Inside the idea of growing the company’s ■ More coverage of Crain’s Detroit House Party at www.crainsdetroit.com. 900 when the event sold out three CALENDAR product breadth in metro Detroit. ■ Home owners help change Detroit’s image. Read Mary Kramer, Page 9. For a list of current weeks ago, with some registrants events, visit ■ Survey finds 73 percent have considered moving to Detroit, Page 31. www.crainsdetroit.com. See Oakland, Page 31 See Party, Page 30 DETROIT BUSINESS MAIN 10-02-06 A 4 CDB 9/29/2006 5:58 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 2, 2006 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES ITC to offer stock to help pay Visteon investors lose for $867M acquisition Novi-based ITC Holdings Corp. on Sept. 25 announced a public offering of nearly 6.7 million new shares of common stock to faith that company can help finance its $867 million acquisition of Michigan Electric Transmission Co. L.L.C. ITC, which operates South- find buyer for assets east Michigan’s transmission system, received approval the week of Sept. 18 from the Federal BY SHANNON HARRINGTON year profit forecasts to less than Energy Regulatory Commission to BLOOMBERG NEWS the $170 million to $200 million it buy Michigan Electric, the projected on Aug. 1. The maker of state’s other major transmission Visteon Corp. investors are losing instrument panels, door trim, company. ITC expects to com- confidence the second-largest U.S. headlights and air-conditioning plete the deal within a month. auto-parts maker will find a buyer systems became the fourth U.S. In addition to the sale of new for some of its assets as earnings auto-parts supplier to reduce its stock, ITC’s principal stock- decline, according to traders who expectations since Ford Motor Co., holder, International Transmis- bet on the creditworthiness of General Motors Corp. and Daimler- sion Holdings L.P., is selling more companies in the credit-default Chrysler AG’s Chrysler unit an- than 2.8 million shares of ITC swap market. nounced plans to build fewer vehi- stock it has held in the offering. The perceived risk of owning cles in the second half. — Amy Lane Visteon’s $1.15 billion in bonds TRW Automotive Holdings Corp., jumped in the past two weeks as BorgWarner Inc. and Lear Corp. have speculation about a sale of the Van also decreased their earnings fore- Dura sells German Köhler unit Buren Township-based company casts. Rochester Hills-based Dura faded. Credit-default swaps are fi- Visteon shares closed Friday at Automotive Systems Inc. has sold Dating was meant to be simple. nancial instruments based on $8.15. Dura Automotive Systems Köhler bonds and loans that are used to A purchase probably would help GmbH to an entity controlled by speculate on a company’s ability Visteon bondholders because Lippstadt, Germany-based Han-

My Executive Assistant to repay debt. Paris-based Valeo, Europe’s third- nover Finanz Group for an undis-

“convinced me to join It’s Just Lunch. Prices of credit-default swaps biggest car-parts manufacturer, closed price. based on Visteon debt had fallen to has a higher credit rating. Valeo’s Dura Köhler employs about The overall experience has been fun,“ their lowest in more than a year af- senior unsecured debt is rated 255 and has annual sales of about exciting and is a much better way to ter Debtwire reported on Aug. 17 Baa2 by Moody’s Investors Service, $58 million. It makes decorative meet people that fit my style. that Valeo SA would buy the compa- eight levels above Visteon, which stainless steel parts, including ny. The trade publication cited is rated Caa1. components and assemblies for two people familiar with the auc- Bonds rated below Baa3 by hinge and door reinforcements, tion it didn’t identify. Speculation Moody’s and BBB- by Standard & fuel systems, gear and steering waned the last week of September Poor’s are considered non-invest- assemblies and corrosion test- It’s Just Lunch!, who will you meet? as Debtwire on Sept. 22, citing in- ment grade. ing equipment. At It’s Just Lunch, we’re first date experts. We hand select our clients’ dates and make all vestors and an analyst it didn’t Visteon’s 7 percent notes due W.Y. Campbell & Co. served as the arrangements, so all you have to do is show up for lunch or drinks after work. Let us identify, reported that Valeo 2014 rose to 90.25 cents on the dol- financial adviser to Dura on the give your personal life the personalized attention it deserves. Give us a call today and let pulled out of the bidding for Vis- lar Sept. 28 from 89 cents a day ear- transaction. W.Y. Campbell us take care of all the arrangements. It’s Just Lunch, dating for busy professionals. teon (NYSE: VC). lier, according to Trace, the bond- Managing Director Cliff Roesler It’s Just Lunch Directors: “Once you take away that poten- price reporting system of the said Dura also has a letter of in- tial sale announcement, what NASD. The notes are down from tent from a buyer interested in you’re left with is the announce- 95.5 cents Sept. 13. The extra yield Dura Automotive Systems Roten- ment of third-quarter results, investors demand to own the burg GmbH in Rotenburg, Ger- which everyone knows are going bonds rather than similar-maturi- many. Campbell also has been to be weak,” said Kip Penniman, ty Treasuries has risen to 4.22 per- talking to interested buyers for Paula Angela Nancy PJ an analyst at high-yield research centage points from 3.07 percent- Dura’s plant in Lage, Germany. Komar Curtis Kirsch Osgood firm KDP Investment Advisors Inc. in age points. — Brent Snavely Detroit 248.273.1000 Ann Arbor 734.327.2700 www.itsjustlunchdetroitsuburbs.com Montpelier, Vt. Valeo CEO Thierry Morin this week said he was interested in STREET TALK buying parts of some suppliers, not entire companies, according to THIS WEEK’S STOCK TOTALS: 45 GAINERS, 26 LOSERS, 7 UNCHANGED a JPMorgan Securities Inc. research 9/29 9/22 PERCENT note. CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE Credit-default swaps based on 1. Michigan Community Bancorp Ltd. $5.70 $5.05 12.87 $10 million of Visteon bonds 2. Lear Corp. 20.70 18.38 12.62 jumped to a high of $485,000 on Energy Conversion Devices Inc. 37.04 33.37 11.00 Sept. 25 from $290,000 on Sept. 13, 3. General Motors Corp. 33.26 30.62 8.62 according to data compiled by 4. Credit Suisse Group. The cost nar- 5. Meadowbrook Insurance Group 11.26 10.40 8.28 rowed to $450,000 Thursday, data 6. Asset Acceptance Capital Corp. 16.25 15.07 7.83 compiled by Lehman Bros. Holdings 7. North Pointe Holdings Corp. 9.26 8.60 7.67 Inc. show, after Visteon on Thurs- 8. Rofin-Sinar Technologies Inc. 60.77 57.04 6.54 day announced plans to close a fac- 9. BorgWarner Inc. 57.17 53.76 6.34 tory and cut jobs. An increase in 10. American Axle & Mfg. Holdings 16.69 15.85 5.30 price indicates deterioration in CDB’S LOW PERFORMERS 9/29 9/22 PERCENT the perception of credit quality; a CLOSE CLOSE CHANGE decline suggests improvement. 1. Somanetics Corp. $19.96 $21.51 -7.21 The five-year contracts, con- 2. Visteon Corp. 8.15 8.61 -5.34 ceived to protect bondholders 3. Dearborn Bancorp Inc. 23.78 25.00 -4.88 against default, pay the buyer face 4. Caraco Pharmaceutical Labs Ltd. 10.16 10.64 -4.51 value in exchange for the notes 5. Universal Truckload Services Inc. 25.97 26.62 -2.44 should the company fail to meet its 6. Handleman Co. 7.59 7.75 -2.07 obligations on time. 7. Semco Energy Inc. 5.64 5.73 -1.57 The increase in the contracts 8. Champion Enterprises Inc. 6.90 7.01 -1.57 suggests that the probability of de- 9. Covansys Corp. 17.14 17.40 -1.49 fault rose to 33 percent, up from 22 10. Valassis Communications Inc. 17.65 17.83 -1.01 percent, according to a JPMorgan Source: Bloomberg News. From a list of publicly owned companies with headquarters valuation model on the Bloom- in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading berg. at less than $5 are not included. Visteon last week lowered full- DBpageAD.qxd 11/29/2005 11:01 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS October 2, 2006 Chamber backs reforms on petitions

LANSING — With bat- include on the petition a Initial challenges over language introduced by Rep. Kevin Elsen- tacted by opponents. tles still fresh over this 100-word explanation of clarity and then over petition-cir- heimer, R-Bellaire. Sarah Hubbard, vice president of year’s ballot-proposal the proposal and a state- culators’ statements arose with Additional recommendations ap- government relations at the Detroit campaigns, the Michigan ment of any fiscal impact the Michigan Civil Rights Initiative on proved at the chamber’s Sept. 21 Regional Chamber, saw the situation Chamber of Commerce is — issues now generally ad- this year’s ballot. board meeting include: such a zone would address. On a calling for reforms that dressed after all signa- The Michigan chamber has not ■ Requiring petition-manage- Saturday earlier this year in De- would place new require- tures have been gathered. taken a position on the MCRI but ment firms that collect signatures troit’s Eastern Market, signature ments on those who try to Bob LeBrant, the cham- was involved in challenging peti- to register with the Michigan De- gatherers for an education-funding amend state constitution ber’s general counsel and tions for the Stop OverSpending pro- partment of State. People paid to guarantee and the competing SOS or law through signature- senior vice president of posal or SOS, a constitutional gather signatures would also have proposal “were at each other’s gathering. political affairs, said such amendment to limit state spending to register and provide proof of throats,” Hubbard said. “They were Before circulating peti- CAPITOL BRIEFINGS requirements could pre- that failed to make the ballot. voter registration. yelling at the people who were sign- tions, an interest group Amy Lane clude some later petition The chamber’s recommenda- ■ Banning payment to circula- ing and at each other.” would need to have the challenges and would give tions are similar to some made tors on a per-signature basis. form of its petition approved by the petition signers a clear proposal earlier this year by Secretary of ■ Establishing a “noninterfer- Board of State Canvassers and the statement that is identical to what State Terri Lynn Land. A bill em- ence zone” in which petition circu- Wellness bills signed into law board would have to approve and they would see in the voting booth. bodying those measures has been lators and signers cannot be con- Two little-noticed bills signed into law Friday could pay big health care dividends for employers and employees. Senate Bills 848 and 849, spon- sored by Tom George, R-Portage, allow health insurers to offer wellness coverage, incentives and rebates to employers whose workers participate in wellness programs. Wellness coverage can include a rebate or reduction in premiums or reduced co-payments, coinsurance or deductibles, for participation in employer-offered wellness, maintenance or improvement programs. Rebates can be up to 10 percent of paid premiums. The bills do not stipulate what employers must do with premium savings, but it “would make a whole lot of sense for them to turn those dollars right back into programs for employees,” said Wendy Block, director of Business-efficient health policy and human resources for the state chamber. Extra $37M for jobs fund projects The board of the Michigan Strate- is now gic Fund on Wednesday approved $37 million in additional funding for projects that competed in the first round of awards from the state’s 21st Century Jobs Fund. cost-efficient. As Crainsdetroit.com reported Sept. 6, the state initially selected 61 projects to share $101.2 million. But Spend less, and get more productive, with AT&T’s The complete at the time, state officials said there were more highly recommended most feature-rich bundle of communications tools for small business bundle for under projects than the $100 million small business. For less than $95 a month, you’ll get award authorization. So the Strate- gic Economic Investment and Commer- unlimited local and nationwide calling, high-speed Internet cialization Board requested an addi- and Unified MessagingSM — a service that consolidates $ tional $36 million to fund those 24 95/month projects, which have not been pub- messages from your email, fax, office phone and wireless licly identified by the state, and $1.2 phone into a single mailbox. All consolidated onto a single An 18% savings million to fully fund six of the origi- for the first year nal 61 winning proposals. bill and backed by the complete and secure network The SEIC board is scheduled to of AT&T. To order, call your local AT&T small business meet Oct. 16 to finalize the awards. expert at 1-888-ATT-8339 or go to att.com/essential. MEDC seeks bids for campaign The Michigan Economic Develop- ment Corp. is seeking bids for a contract of up to $150,000 for an electronic-marketing campaign to promote Michigan as an innova- tive, attractive destination for young professionals. Bids are due by 2 p.m. Oct. 19. TV ad spending for governor race nears $26 million Spending for TV ads in Michi- gan’s gubernatorial race has att.com/essential reached nearly $26 million, including $11.6 million in the Detroit area, the nonpartisan Michigan Campaign $95 Bundle Offer — Available to businesses with 1–10 lines. Promotion requires one-year term. Rate specified is for first line only. Taxes and other charges extra. For Finance Network reported Thursday. details of additional charges, restrictions and requirements, call 888-288-1405 toll-free. Long Distance provided by AT&T Long Distance. AT&T Yahoo!® High Speed Internet Amy Lane: (517) 371-5355, alane@ Service Business Edition provided by AT&T Internet Services. AT&T Unified Messaging provided by AT&T Messaging. ©2006 AT&T Knowledge Ventures. All rights reserved. crain.com DBpageAD.qxd 9/7/2006 10:55 AM Page 1

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Health Dental Pharmacy Behavioral Health Long Term Care Disability Life

Page 8 CRAIN’S DETROIT BUSINESS October 2, 2006 OPINION U.S. Steel’s good work should be encouraged s U.S. Steel Corp. a hero or a villain? The Pittsburgh-based company acquired the bankrupt I Great Lakes Steel complex in Ecorse and River Rouge in 2003. In two years, it has spent or announced nearly $100 million in improvements, installed equipment to improve air quality to meet state orders, renegotiated labor agreements, began offering profit-sharing and started producing steel more produc- tively than ever before. But more steel production has meant mandatory overtime for many workers. And though the air quality is improving, some critics say the company took too long to fix the problem it inherited with its purchase. A federal class action lawsuit filed by residents and the cities of River Rouge and Ecorse is expected to go to trial in 2008. The picture isn’t perfect, but many workers in this region would welcome the overtime and applaud the steelmaker’s investments. The metro area shed 12,000 manufacturing jobs since early 2005, according to a recent state labor market report. Two aspects of the U.S. Steel story (see Page 1) are encour- aging. First, U.S. Steel’s renegotiated labor pact can be a model for how more contracts need to be written. Many job classifications were eliminated, leaving five broad grades with more flexibility LETTERS for management. More flexibility means more productivity. Overtime may not last forever; management says the complex is not staffed for its peak production as it was in the past. Mudslinging par for the course Second, the air-quality dispute led to the company’s investment of $200,000 to help improve a stretch of shoreline on the Editor: spend responsibly, and therefore Detroit River. The results (see Page 33) are dramatic. Crain’s Detroit Business Keith Crain’s commentary on welcomes letters to the editor. they won’t. The region is better off with U.S. Steel employing 2,300, but political mudslinging (“There is All letters will be considered for Mr. Crain, in consideration of jobs alone aren’t reason for the company to escape its environ- still plenty of time — and mud,” publication, provided they are these facts alone, I see no honor in mental issues. But more has been accomplished through nego- Sept. 11) seemed to infer that there signed and do not defame being a politician or voting for tiation than could perhaps be done by a judge’s order alone. is something good and honorable individuals or organizations. one, and that is why I stopped about being a politician. Let’s face Write: Editor, Crain’s Detroit Business, 1155 Gratiot Ave., plugging my nose in order to vote it: politics is a dirty business, and Detroit, MI 48207-2997. for the lesser of two evils. Evil is the more mud that gets slung, the Take us out to the ballgame E-mail: [email protected] evil no matter the degree, and my more the true nature of politicians Message boards: Share your morals dictate that I cannot vote is revealed to the public. By the time you read this edition, we’ll know if the Detroit views in our online community. in favor of evil. It makes no differ- Today, being a politician is all Tigers are entering the post season as the American League forums.crainsdetroit.com. ence, Democrat or Republican, about how much money they can Central Division winner or as a wild card team. which is voted into office, because appropriate (steal) from the tax- gressive ways to loot the treasury. once politicians get a taste of the Either way, the team is a winner. And so is Detroit. Detroit payer and give away to those who As I was writing this, the national has waited 19 years to see the home team in the playoffs. have not earned it and, at the same power they wield, they will only debt (www.brillig.com/debt_ And if the Tigers play every potential home playoff game, time, position themselves for their strive for more of it. they could pump nearly $72 million into the local economy — next election. Individual and cor- clock/) was $8,499,452,439,652, and it Let the mud fly, and maybe through buying food, drinks, souvenirs, entertainment and porate welfare in this country is continues to grow at about $1.75 bil- someday the voters will finally tickets. (As we reported Thursday on crainsdetroit.com and in a an epidemic, and giving away all lion a day. Each family in the U.S. recognize the hopelessness of the would have to come up with story on Page 33 of this issue.) But even if the team goes no fur- that money does not do one ounce situation. I hope that one day in $135,361 in order to pay off that debt. the very near future, the citizens ther, the report by East Lansing-based Anderson Economic of good for the taxpayers. Instead, those who receive this money only Logic dictates that if one runs of this country will say enough is Group says the boost this season of 7,500 fans a game on aver- look for ways to receive more of it out of money, they should stop enough and demand change. age meant $36.2 million more for the local economy over regu- and have no incentive for improv- spending, but this is not the case Michael Bates lar season home games. ing their situation. for governments. Politicians have Ferndale Bless you, boys. Each election results in more ag- no incentive or accountability to See Letters, Page 9

CHRISTOPHER CRAIN: Penske keeps his promise to Detroit

At Crain’s Newsmaker of the troit twice. Today, we fect. I remember the Isle, I was disappointed at first. But battle between Bobby Rahal and Year award lunch in February, are located across from finely tuned roar of the it has proven to be a great venue for Michael Andretti. Now, Rahal is a this year’s honoree pledged that Ford Field, but our first cars as they approached a race and with Penske’s leadership team owner and Andretti’s son, Mar- his support for Detroit would not office was on Jefferson and the smell of dis- could grow into a signature event co, is a promising rookie in the IRL. end with the Super Bowl. Avenue, just off the ser- tressed rubber as they for the city. The largest event of the You also might have heard of a new He has kept his promise. vice drive from I-375. made their turn onto year for IRL is the Indy 500. It is on driver named Danica Patrick — rea- Roger Penske announced that Before the Grand Prix East Congress. As a scale with the Super Bowl — some- son alone to bring the IRL to Detroit! the Indy Racing League will be re- moved to Belle Isle, the small business, we ben- thing this city can appreciate. The By the way, drivers Sam Hornish turning to Detroit next year. I, for race circuited the efited by the race’s Indy 500 attracts 200,000 fans for the Jr. and Helio Castroneves finished one, am thrilled. Some of my oldest streets of downtown, proximity to our office. big race and a million fans over the first and second in the champi- memories of this city are of the De- and the eastern end of We hosted customers week of events and races. Wouldn’t onship standings this year in the troit Grand Prix, and I can’t wait the race path passed di- and clients on the it be great if we could build an an- IRL. They have something in com- to make some new ones. rectly below our old of- rooftop for our annual nual event that would deliver that mon with each other. Can you guess In 30 years, Crain Communica- fice on Jefferson. Grand Prix party. type of economic horsepower? what it is? tions Inc. has moved offices in De- The view from the roof was per- When the race moved to Belle The last IRL race in Detroit was a They both work for Mr. Penske. DETROIT BUSINESS MAIN 10-02-06 A 29 CDB 9/29/2006 5:59 PM Page 1

October 2, 2006 CRAIN’S DETROIT BUSINESS Page 29 Gateway: Execs write letters to lure retailers to Detroit ■ From Page 3 a look at Gateway Park, Press Sec- said George Jackson Jr., president this year for the new headquarters tural design firm JGA Inc. retary Liz Boyd said. and CEO of the Detroit Economic of Quicken Loans/Rock Financial Inc. “If those two efforts aren’t being “This … project would mean Growth Corp. People are “People are very willing to do coupled together, it won’t be a par- hundreds of jobs in Detroit,” Boyd “ “Businesspeople who are this,” Jackson said of business and ticularly effective initiative,” said. making site location deci- very willing to political leaders offering support. Nisch said. Matthew Cullen, general manag- sions want to feel that the “You just have to be careful not to er of the economic development community wants them,” do this. You overuse it, so we use it selectively.” Still, Nisch said the community and enterprise said Jackson, who plans to just have to be The tactic is being used for the support can help retailers recog- services group write his own letter. “They Gateway Park project because ma- nize what he called “a great loca- at General Motors expect the community devel- careful not to jor national retailers are one of the tion from a retail standpoint.” Corp., also wrote opment guy to go after them, city’s main targets for business at- “I would think they’d be missing a letter of sup- but when they get the sense overuse it. traction, Jackson said. a big opportunity not to consider it port for Gate- that the community has a Letter-writing campaigns can be ” if there’s going to be the type of re- way Park. strong desire for them to be there, effective, but usually only if George Jackson Jr., development they’re talking about Cullen said it’s that can only be positive.” Detroit Economic Growth Corp. they’re coupled with economic in- part of GM’s Similar letter-writing and phone centives such as tax abatements, doing,” Nisch said. goal to encour- campaigns have been used to at- including when the city offered at said Ken Nisch, chairman of Sheena Harrison: (313) 446-0325, age develop- Cullen tract other businesses to the city, least two downtown sites earlier Southfield-based retail architec- [email protected] ment in Detroit and clear up misconceptions about doing business in the city. “From a GM perspective, we’ve made a significant commitment to the city and this region, and we be- Extremely lieve that a strong and vibrant city We’re Committed To of Detroit is critical,” Cullen said. Chicago-based General Growth Properties Inc., the nation’s second- Serving Our Community… largest retail real estate investment trust, has agreed to develop, lease and manage the proposed project at the southeast corner of Eight Mile Road and Woodward Avenue. Plans for the center include a 125,000-square-foot big-box store, four large retailers such as a book- store or electronics store, up to four full-service restaurants and more than 40,000 square feet of space for small retailers. Lyneir Richardson, vice president of urban land development for General Growth Properties, said it’s common for community leaders to express support for urban retail projects in their cities in hopes of allaying retailers’ con- cerns. He said that’s been important in Detroit, which has been portrayed negatively with the auto-industry downturn. “Clearly there’s unmet demand for retail services, but you’re deal- ing with this overriding concern about the auto industry that you wouldn’t have in other cities,” Richardson said. Richardson, who heads up Gen- Sundays 8/7c on ABC eral Growth’s other urban retail projects, said the company sees Gilliam Family, Builders and Bankers. Back row, from left to right: Anthony Lombardo, Lombardo Homes; Rick Merlini, American Heartland Homebuilders; Detroit as a “poster child” for ur- Mary Berckley, Fifth Third Bank; Bruce Balmas, Fifth Third Bank; Paul Irwin, Fifth Third Bank and David Girodat, Fifth Third Bank ban-development potential. Sup- port from community leaders can help retailers see Gateway Park in One Family At A Time. the same light, particularly when it comes to its ability to attract a Fifth Third Bank is proud to have helped the Gilliam Family range of shoppers. of Armada Township by paying off their existing mortgage for “The letter-writing and phone calls are letting retailers know their dream home built by American Heartland Homebuilder that there is a broad support and and Lombardo Homes. willingness to shop at the site, not only from Detroit but from adjoin- ing suburbs,” Richardson said. That’s what makes American Heartland Homebuilders, Richardson expects General Lombardo Homes and Fifth Third Bank unique.We’re committed to Growth will begin announcing ten- ants by the end of the year. making a difference in the lives of others, one family at a time. “We’re putting all of our resources behind making something Do you have Extreme Home Dreams? good happen,” he said. Gateway Park Investor Bernard Call Bruce Balmas at 800-782-8830 and ask about Schrott agreed that support from various community leaders has our mortgage products.* been helpful in trying to get the project off the ground. “I think that it shows the support of the community and the ad- ministration and the leadership of the city of Detroit,” Schrott said. Business and community lead- *Upon credit review and approval. Product subject to change. Fifth Third and Fifth Third Bank are registered service marks of Fifth Third Bancorp. ers can be crucial in the city’s ef- Member FDIC. Equal Housing Lender. forts to attract business to the city, DETROIT BUSINESS MAIN 10-02-06 A 30 CDB 9/29/2006 6:40 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS October 2, 2006 Party: Detroit residents open their houses to showcase city ■ From Page 3 from Detroit’s own neighborhoods Moceri said that his residential move into the city. ty to offer to what has been, so far, son families choose not to live in as well as event sponsors. development company had so far People like Bobbie Crawford, a tough group to attract: young, the city — is an issue that can be Jahn was one of a solid core of stuck to the suburbs because until who works in property develop- growing families. overcome, said Camille Simpson, a suburban attendees that regis- a few years ago, city development ment in Novi, but is eyeing a house At a house in Sherwood Forest, former school teacher and local tered surprise at Detroit’s “hidden was stagnant. on the east side as home. Or an impromptu group discussion real estate broker. gems,” and suggested that the tim- But not anymore. Michael Dinwiddie, a Cass Tech about the positive attributes of De- Detroit Renaissance High ing might be right for Detroit to “We have condos going up all alumnus who is now an associate troit’s neighborhoods and the gen- School as well as several top-notch cultivate a thriving residential around us,” said Richard Freitag, professor of dramatic writing at eral lack of awareness of those elementary schools “are excel- base. (See story, Page 31.) pointing around the neighbor- New York University. Dinwiddie re- neighborhoods broke out and last- lent,” she said. Dominic Moceri, partner at hood. “There’s a building over cently bought a Shorepointe Vil- ed about a half-hour. And, said another Sherwood Auburn Hills-based Moceri Cos., there with 35 units and another lage house to serve as a summer The home, owned by Laura Rod- Forest resident, raising children made it a point to visit 137 W. Willis, with 25 over there.” home until he retires. wan, is the childhood home of ac- to value diversity takes living in a three-story renovated house that New residential developments Those who already live in De- tor Robert Wagner and was the an area that has it. “That’s the was eight apartments at one point. are sprouting in nearly every cor- troit say they welcome the atten- subject of a feature story in Crain’s kind of thing you have to live and The house, estimated to be built ner of Detroit — each vying for the tion from retired sophisticates and Executive Life feature “Why I Live not just preach.” around 1913, is owned by Denise young professionals and empty young urban hipsters. But they in Detroit” published Sept. 4. The bottom line, said Lorna “Denny” and Richard Freitag. nesters who are most likely to quickly add that the city has plen- Public schools — the biggest rea- Thomas, a dermatologist and a ninth-genera- tion Detroiter who hosted a party at her Palmer Woods home, is that De- troit offers a sense of community like nowhere else. “I could have Thomas lived anywhere in the country,” Thomas said. “I chose to live here.” There’s still work to do, Detroit residents said. Detroit’s disparate communities need to work toward forging tighter bonds. And, said Mark Lock, a lifelong Detroiter ex- cept for a stint at college, it is in- cumbent on city residents to spread the positive word. “We are the ambassadors,” he said. Michelle Martinez: (313) 446-1622, [email protected] Tom Henderson: (313) 446-0337, [email protected]

Delphi loss narrows in August minus buyout charges Delphi Corp. narrowed its loss in August compared with July when excluding special charges for the cost of the company’s early retire- ment and buyout program. The auto supplier posted a net loss of $161 million, excluding a $372 million special charge, compared with a net loss of $350 million in July, excluding a $184 million charge. The numbers are unaudited and required monthly by the U.S. Bankruptcy Court. Delphi put its U.S. operations in Chapter 11 bankruptcy in October 2005. The performance was the best in several months. Cost-cutting measures and lower labor costs are gradually taking hold, said Delphi spokeswoman Claudia Piccinin. She cautioned that month-to- month comparisons can reflect wide earnings variations. Also, last week the bankruptcy court again postponed a hearing of a Delphi petition to terminate its labor agreement. The court has rescheduled a conference for Oct. 19 to discuss the situation with the parties. — Crain News Service DETROIT BUSINESS MAIN 10-02-06 A 31 CDB 9/29/2006 6:01 PM Page 1

October 2, 2006 CRAIN’S DETROIT BUSINESS Page 31 Survey: 73% say they’ve considered moving to Detroit

BY SHERRI BEGIN tion, cost of liv- ness to venture into the city. living, supplied Detroit pictures of CRAIN’S DETROIT BUSINESS ing and cultural “But if this city is going to grow, interesting cars, architecture and opportunities Detroit got high it’s not going to grow one person new developments for a video pre- Nearly three-quarters of the peo- were most im- per housing unit at a time. You’ve sentation at Crain’s House Party. ple who responded to an online portant to them marks in cultural got to bring families in … to create The organization strives to doc- survey last month from Model D in choosing a ument Detroit’s transformation and the United Way for Southeastern place to live. opportunities and diversity, density and a thriving and to provide guides to neighbor- Michigan have considered moving They gave De- city,” Metzger said. into the city of Detroit. sense of community. hoods, growth and investments in troit high marks Both Model D and United Way Model D, an electronic newslet- in cultural op- Currently in its first phase of re- said they planned to post the sur- the city. It sent its own team of ter and Web site dedicated to De- Metzger vitalization, the city is attracting vey results on their Web sites at writers and photographers to the troit development, sent the survey portunities, cost young single and married profes- House Party and plans to post a to its 24,000 newsletter subscribers of living, housing quality and www.modeldmedia.com and story and pictures on its Web site to gauge their perceptions of De- sense of community, he said. sionals without children and emp- www.uwsem.org early this week. troit; about 1,000 people responded. The city’s biggest weaknesses ty-nest baby boomers, Metzger Model D, which has been work- Tuesday, said Managing Editor The survey asked respondents were its lack of a sense of security, said. Lack of good schools and some ing with the Michigan State Housing Clare Pfeiffer Ramsey. questions about critical factors in public services, educational oppor- safety issues aren’t as important to and Development Authority to devel- Sherri Begin: (313) 446-1694, choosing a place to live and De- tunities and public transportation. them and don’t limit their willing- op a concept for promoting Detroit [email protected] troit’s strongest and weakest attributes. Kurt Metzger, director of research for the United Way, still was analyzing the data late last week, but he said that of the 618 respondents who didn’t currently Lissa Chartier, Citizens Banker. live in Detroit but lived in the region, 73 percent said they’ve con- 22 years experience and the clout sidered moving into the city. Respondents said that housing in our organization to make things quality, sense of safety and securi- happen for yours – Quickly. ty, sense of community connec-

Oakland: Trips show results ■ From Page 3

Ten years from now, Berge said, he’d like the lion’s share of the company’s medical devices to be developed in metro Detroit. Beaumont hopes other companies will feel the same way. The Royal Oak-based system two years ago rolled out its Tech- nology Usability Center to help device manufacturers speed products to market. For a fee, Beaumont clinicians, researchers and physicians will give advice on product development, test the use- fulness of devices and conduct longer-term clinical trials in its hospitals. The center is already vetting products for companies such as Delphi Medical, GE Healthcare and HandyLab, an Ann Arbor-based di- agnostic testing device maker. And it could help more, Felten said. Felten was hired about one year ago with the primary duty of in- creasing the number of licensing agreements, product-testing contracts and spinoff companies Beau- mont makes with pharmaceutical companies and medical-device THE BEST BUSINESS BANK IN MICHIGAN manufacturers. While Beaumont already is en- trenched in the county’s recruit- The highest compliment a Citizens Banker can receive is that he or she is “On the Ball.” Lissa Chartier ment plan, the involvement of other hospital systems would further and the team of Business Bankers at Citizens are the reason we are the Best Business Bank in Michigan. strengthen these efforts, said Mau- reen Krauss, Oakland County And they’re eager to prove it. Call Lissa today and put Citizens to work for you. deputy director of economic devel- Call Lissa at 248-324-8520. opment and community affairs. Anjali Fluker: (313) 446-6796, Let’s make it happen. [email protected] Michelle Martinez: (313) 446-1622, [email protected] DETROIT BUSINESS MAIN 10-02-06 A 32 CDB 9/29/2006 4:12 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS October 2, 2006 Steel: Great Lakes buoyed by investment Kenwal Steel ■ From Page 1 filed in November 2004 by residents and the U.S. District Judge Avern Cohn Feb. 27. cities of River Rouge and Ecorse. And, on “What U.S. Steel did was to buy this facility ramps up Sept. 12, an explosion rocked the company’s out of bankruptcy, and then take a long time iron-making plant on Zug Island and sent five to actually investigate and take corrective employees to the hospital. The accident, measures that were needed, and then enter Jauss said, is under investigation by the into a consent order and en- operations Michigan Occupational Safety and Health Admin- ter into compliance,” istration. Thompson said. Marc Barragan, president of United Steel- During a two-year peri- workers Local 1299, said the company has not od, Thompson said, nearby in South hired enough workers to meet increased pro- residents dealt with a met- duction demands. al-like dust from the plant BY BRENT SNAVELY “Our people are working far too much over- that frequently coated their CRAIN’S DETROIT BUSINESS time,” Barragan said. cars, homes, patios and lawns while U.S. Steel oper- Dearborn-based steel processor Annual production at Great Lakes Works U.S. Steel spent $200,000 to complete a ated the plant. Kenwal Steel Corp. is another compa- has increased from 1.9 million tons in 2003 to “supplemental” project to restore part of the Thompson 3 million tons in 2005, according to U.S. Steel’s Detroit River shoreline as part of its agreement U.S. Steel, in a response ny in the local steel industry that is most recent annual report. with the state of Michigan. Photos are before filed with the court, said that “At all times, on the move. Throughout the summer, Jauss said the (above) and after any activities undertaken by U.S. Steel in con- Since August, Kenwal has an- plant was producing about 300,000 tons of nection with its operations were lawful, were nounced plans to build two new steel steel per month. In fact, Jauss said the plant is within applicable legal limits, and/or permit- processing centers in the South. producing almost as much steel from two ted by law,” and also said that any dust that Kenwal also announced Sept. 19 blast furnaces as it once did while operating residents were exposed to did not result in that it has promoted Lawrence three blast furnaces. The plant’s production significant harm. Bogner to vice president of opera- capacity is about 3.6 to 3.8 million tons per Thompson said the parties are in the midst tions. Bogner was formally general year. of a discovery stage with a trial tentatively manager of Kenwal Pickling L.L.C. But to attain that level, Barragan said, the scheduled for 2008. The residents want to be Kenwal said Aug. 22 that it plans to build a 100,000-square-foot, $12 workweek for Great Lakes Works’ 2,300 em- compensated for living with the pollution and million steel service center in ployees has increased to an average of about the cities would like U.S. Steel to pay for ongo- Lebanon, Tenn., that will employ 56 hours, with some employees working far ing emissions monitoring, Thompson said. about 70. Construction began in Sep- more. U.S. Steel also is still at odds with Ecorse tember and plans call completion by “In many cases, our workers this summer and River Rouge over the amount of taxes it June. were forced to work seven-day-a-week, 12- believes it should pay. That dispute, which PHOTOS FROM NATIVESCAPE L.L.C. Kenwal also said Aug. 10 that it hour-a-day schedules,” Barragan said. began back in 2004, is still pending in front of plans to begin building a 210,000- Said Jauss, “I won’t say that it doesn’t hap- the Michigan Tax Tribunal. square-foot, $15 million distribution pen, but it doesn’t happen for years at a time.” IMPROVING U.S. STEEL Aside from those disputes, Jauss said U.S. facility near Columbus, Miss., that Still, Barragan acknowledges that U.S. Projects completed earlier this year Steel has worked hard to be a part of the com- U.S. Steel could open next June. That service Steel revived a plant that suffered from a lack at its Great Lakes Works steel plant as a munity and is involved in about a half-dozen center will be next to a SeverCorr of even routine maintenance for nearly three result of a consent order reached with the nonprofit activities, including The Salvation state of Michigan in February 2005: L.L.C. steel mill and Kenwal’s plans years as National Steel sank deeper into fi- Army. ■ Installed a new baghouse to control air- to begin construction there this nancial trouble and then into Chapter 11 “None of that kind of stuff was going on be- month. bankruptcy. pollution emissions from a blast furnace at the Zug Island River Rouge facility and made a fore under National Steel,” Jauss said. SeverCorr was formed in 2003 by Today, Barragan said, employees at Great number of upgrades to existing equipment to As for the future, Jauss said there are op- John Correnti, the former CEO of Lakes Works are earning extra money from improve control of air-pollution emissions at portunities for more production and opera- U.S. steel giant Nucor Corp., and is a the overtime and are getting profit-sharing its oxygen furnace. A baghouse is a filter tional improvements. joint venture between Correnti and checks that were unheard of before the pur- system that removes dust particles from The $30 million renovation of Great Lakes OAO SeverStal, parent company of chase. gases produced during steelmaking. Works hot strip is already under way. A hot Dearborn steelmaker Severstal North ■ “Our standard of living away from the job Agreed to conduct an ongoing strip mill takes 25-ton slabs of steel, reheats America Inc. comprehensive operation and maintenance is good,” Barragan said. “The standard of liv- The Mississippi project will give program. them and rolls them into coils. ing on the job is very low.” Since U.S. Steel bought Great Lakes Works, Kenwal its first presence in the When U.S. Steel purchased National Steel, ■ Agreed to spend $200,000 to complete a the company has benefited from the financial South and will employ about 80. it negotiated a new labor agreement with “supplemental” project to restore part of the recovery of the nation’s steel industry, which Kenwal officials were not avail- United Steelworkers that eliminated numer- Detroit River shoreline to a more natural state. ■ has been driven in part by global increase in able to talk last week about the com- ous job classifications, leaving five general la- Agreed to conduct air emission testing to demonstrate compliance with federal and demand and an industry consolidation. Both pany’s rapid expansion but Detroit- bor grades. state air regulations. factors have helped drive up prices. based Bassett & Bassett Inc., the That gave U.S. Steel greater flexibility to ■ Paid a $950,000 fine to the state. On July 25, U.S. Steel reported second-quar- company’s public-relations firm, deploy its workforce where it was needed and said the two projects will add about Source: Michigan Department of Environmental Quality ter net income of $404 million or $3.22 a share helped find ways to cut about 500 jobs. In re- $200 million to $300 million in annu- press releases and consent order. on revenue of $4.1 billion for the period end- turn, the company agreed to a profit-sharing al processing capacity. In 2005 Ken- ing June 30. That was up from net income of plan. clined from almost 1.6 in 2003 to 0.39 as of wal reported about $700 million in $256 million or $2.04 on sales of $3.7 billion for Barragan would like to see the steel plant Sept. 19. sales, according to the company’s hire as many as 200 more workers and said Even so, five employees were sent to a hos- the same period last year. U.S. Steel does not Web site. that the increase in overtime began taking its pital after the Sept. 12 explosion at the compa- break out results for the Great Lakes Works About 65 percent of Kenwal’s an- toll at the plant this summer as accidents be- ny’s iron works, Jauss said. One employee plant, but Crain’s estimates 2005 revenue at nual sales are from the automotive gan to rise. was held overnight for observation. The rest nearly $1.5 billion. industry, Jim DiGiacinto, Kenwal’s Jauss said he expects production will soon were evaluated and returned to work the In a research note published July 26, general manager said in an inter- drop, partly because of production cuts by same day, he said. Lehman Bros. analyst Peter Ward said raw-ma- view with Crain’s in August. some automotive customers and partly be- The accident occurred while workers were terial shortages over the next few years are Kenwal also serves the appliance, cause of plans to repair a blast furnace in De- rebuilding an iron trough. Molten metal that likely to result in continued high steel prices. furniture, mechanical products and cember. was unexpectedly exposed came in contact Ward also wrote that U.S. Steel has been store fixture industries. “The staffing of the plant is not built with water. successful in unlocking value from its acqui- This year, due to production cut- around the highest level of production, but is “We have put a number of process changes sition of National Steel’s assets. In addition to backs by the domestic Big Three au- built around something slightly less than in place to assure that kind of thing does not Great Lakes Works, the acquisition included tomakers, Kenwal expects its annual that,” Jauss said. “I fully expect that during happen again,” Jauss said. plants in Granite City, Ill., and Portage, Ind., sales to drop by about 2 percent, Bas- the fourth quarter, there will be drop-off from Emissions at Great Lakes Works have im- as well as operations in Minnesota. sett & Bassett said in a statement those higher (production) levels ... and that proved since U.S. Steel met its May 22 dead- In the short run, Jauss said, the production provided to Crain’s. will trickle down throughout the facility.” line under the consent order, according to cuts recently announced by the Big Three will DiGiacinto, in August, said the ex- Jauss, who was named plant manager in Robert McCann, press secretary for the affect Great Lakes Works. That’s because pansion into the South will give the August 2005, is proud of the plant’s record-set- Michigan Department of Environmental about 80 percent of the steel produced at company better access to automak- ting production and safety record. Quality. Great Lakes Works is for the automotive in- ers who are expanding in the South. “The most significant part of that, (produc- “It really is a good-news story,” McCann “It is part of an attempt on our dustry. tion improvement),” Jauss said, “is that we said. “Now we are left with a site that is both part to serve a growing customer But Great Lakes Works is in good shape are doing that significantly safer than was environmentally sound and economically vi- base that is drawing us that way,” over the long run because U.S. Steel is a sup- ever accomplished previously in the history able at the same time.” DiGiacinto said. of this facility.” But according to Jason Thompson, senior plier to all automakers, Jauss said. Kenwal distributes hot-rolled, Jauss said the plant’s recordable injury fre- trial lawyer at Charfoos & Christensen P.C. in “So if GM were to lose business to Toyota, it cold-rolled and a variety of coated- quency per 200,000 hours worked declined Detroit, U.S. Steel’s slow path to compliance wouldn’t quite have the impact on us that one steel products from processing cen- from more than 3 in 2003 to 1.9 through Sept. damaged the lives of nearby residents. might think,” Jauss said. ters in the Midwest and Canada. 19. Plus, employee days away from work due Thompson is the lead trial attorney in a Brent Snavely: (313) 446-0405, Brent Snavely: (313) 446-0405, to injury per 200,000 hours worked have de- lawsuit that was certified as a class action by [email protected] [email protected] DETROIT BUSINESS MAIN 10-02-06 A 33 CDB 9/29/2006 6:40 PM Page 1

October 2, 2006 CRAIN’S DETROIT BUSINESS Page 33

Tigers: Tickets are hot commodity at businesses www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] through three of the first round of Tom Dekar, vice chairman of De- them lined out the door,” he said of ASSOCIATE PUBLISHER Christopher Crain, the playoffs. loitte & Touche USA and regional (313) 446-1645 or [email protected] WORLD SERIES RUN COULD demand for playoff tickets. “Every- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Duke Grimshaw, marketing di- manager and principal of the body’s your best friend. I’ve got 0460 or [email protected] BRING BOOST MANAGING EDITOR Jeff Karoub, (313) 446- rector at Southfield-based UHY Advi- $71.1M north central region’s Detroit more friends than tickets. I have a 0402 or [email protected] sors MI Inc., a consulting and ac- Detroit could get a $71.1 million headquarters, said his firm shares multiple of 10 friends for every ASSISTANT MANAGING EDITOR Michael Lee, counting firm, said his firm has a suite with the law firm of Miller (313) 446-0416 or [email protected] economic booster shot if the ticket.” SPECIAL SECTIONS EDITOR Shawn Selby, (313) Canfield eight season tickets, four in the Detroit Tigers play every potential and has done so since He said the late notice on game 446-1654 or [email protected] first row behind the visitors’ home playoff game. Comerica Park opened. GRAPHICS EDITOR Nancy Clark, (313) 446- times won’t affect demand. 1608 or [email protected] dugout and four in the row behind That’s according to a report issued He said he has been with the “Being that you’ve got the best COPY EDITOR Vic Doucette, (313) 446-0410 them. Thursday by the Anderson firm 32 years and it has had season or [email protected] entertainment package in town, DATA EDITOR Anne Marks, (313) 446-0418 or “The seats are so spectacular. Economic Group, a private tickets every year. [email protected] You really feel you’re on the field,” economic consulting firm in East “We as a firm are very loyal,” he clients understand the short notice. WEB EDITOR Dan Eizans, (313) 446-0473 or said Grimshaw, who helps deter- Lansing. said when asked if there were ever We won’t get a lot of ‘no’s,’ ” he said. [email protected] WEB DESIGNER/PRODUCER Ai-Ting Huang, mine how they are doled out to the The Tigers, depending on whether any times in recent years when he It’ll be business as usual at the (313) 446-0403, [email protected] 19 partners and principals. He they finished as American League considered giving them up. U.S. District Court in Detroit, where EDITORIAL SUPPORT Anita Duncan, (313) 446-0329; Joanne Scharich, (313) 446-0419 said in years past, the seats Central Division champion or the In the regular season, each firm court administrator Dave Weaver AL wild card, could potentially play NEWSROOM (313) 446-0329, FAX (313) 446- weren’t always in demand by part- alternates games, but for the play- chuckled when asked if there was 1687 TIP LINE (313) 446-6766 11 post-season games at ners or clients, “but now you have Comerica Park. That includes up to offs, they will split the suite each any talk of lawyers trying to REPORTERS to fight people off. It requires some game. Suites normally have 18 reschedule because of the games. Robert Ankeny: Covers the city of Detroit, Wayne three first-round games and four County government, and law. (313) 446-0404 or negotiating skills, and you need to each for the AL Championship seats but that’s bumped up to 24 for “There’s been no discussion of [email protected]. know what prospects of the firm Series and World Series. the playoffs, he said. Sherri Begin: Covers nonprofits and education. anything like that. I can’t imagine (313) 446-1694 or [email protected] you want to get to know better. But The report’s economic impact is Deloitte also has eight seats in it,” he said. Andrew Dietderich: Covers biotechnology, you can’t please everyone.” the stands. innovation and workforce. (313) 446-0315 or based on a formula that calculates Livonia-based coupon company [email protected]. Wayne Mielke, vice president of estimated attendance and “This is the first year where we Valassis Communications Inc. doesn’t Anjali Fluker: Covers Macomb and Oakland corporate communications at Com- spending on parking, food, drinks, used all our tickets all year long,” counties, services and environment. (313) 446- have corporate tickets, said Sher- 6796 or [email protected]. erica Inc., said the bank distributes souvenirs, entertainment and he said. Sheena Harrison: Covers small business, retail tickets. ry Lauderback, the company’s di- and nonautomotive manufacturing. (313) 446- its 50 tickets internally through He said the firm has 130 part- 0325 or [email protected]. the heads of its various lines of The study estimates an impact of ners and directors in the Detroit rector of investor relations and Tom Henderson: Covers banking, finance and $3.9 million per first-round game, technology. (313) 446-0337 or business. They then distribute office and that a random selection communications. However, the [email protected]. them to key clients. $5.5 million for each ALCS game was made Friday of all of them coupon maker may set up a compa- Michelle Martinez: Covers health care, and $9.5 million for World Series transportation and international business. (313) “It’s been a bit of a logistical who wanted tickets. Each winning ny morale-building event around 446-1622 or [email protected]. games. nightmare. Do they win the Cen- partner gets one other ticket for a the Tigers’ post-season run. Bill Shea: Covers media, advertising and For comparison, the report marketing, and Livingston and Washtenaw tral (Division) or not? Do they have key client. Those who don’t have tickets counties. (313) 446-1626 or [email protected] estimated that Super Bowl XL at the best record or not?” he said of a “I throw my hat in the hopper Jennette Smith: Covers real estate and Ford Field in January generated can go to the Comerica Park park- hospitality. (313) 446-0414 or lack of dates and times. “But the $49.3 million. like everyone else,” Dekar said. ing lot free today for “Rally Mon- [email protected]. Brent Snavely: Covers auto suppliers, steel and city’s waited 19 years for this day. The report shows that the He said the lack of firm dates day” scheduled for 11 a.m. to 1 p.m. restaurants and entertainment. (313) 446-0405 or [email protected]. This is the seventh year the Tigers improved Tigers boosted could create conflicts with part- The event features appearances by have been in Comerica Park and ners who have engagements they LANSING BUREAU attendance by an average of 7,500 Ernie Harwell and former players, Amy Lane: Covers business issues at the this is seventh heaven for us.” can’t change: “We’ll just horse- fans per game this season, which including Al Kaline and Willie Capitol, telecommunications and utilities. (517) The Tigers will play Tuesday, translated into an estimated $36.2 trade them if the schedules don’t 371-5355, FAX (517) 371-2492, Horton, food, music, a musical per- [email protected]. or 115 W. Allegan, Suite 220, Wednesday and Friday this week, million impact over 81 regular- match. They’ll go fast.” Lansing 48933. but the times and which days are season home games. David Girodat, senior vice presi- formance by actor Jeff Daniels and ADVERTISING at home depend on if they’re the di- — Bill Shea dent at Southfield-based Fifth Third chances to win playoff tickets. ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] vision winner or wild card. As the Bank Eastern Michigan, is in charge Tom Henderson: (313) 446-0337, SALES INQUIRIES: (313) 446-6052; FAX (313) division winner, the Tigers would the wild card, it would open the of doling out 24 suite tickets and [email protected] 393-0997 face the Oakland Athletics and have postseason on the road against the four box seats. Bill Shea: (313) 446-1626, bshea@ NEW BUSINESS DEVELOPMENT MANAGER home-field advantage. If Detroit is New York Yankees. “I am the ticket master. I’ve got crain.com Cathy Ross, (313) 446-0307, [email protected] ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Shawn McCracken, Tamara Rokowski, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 CLASSIFIED MANAGER Melissa McKay, (313) 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Christina Prix: Jaranowski, (313) 446-1655 Return of racing revs up tourism pitch MARKETING ASSISTANT Jennifer Dunn ■ MARKETING ARTIST Sylvia Kolaski From Page 1 SALES SUPPORT Suzanne Janik, Andrea Beckham, YahNica Crawford bers, who have come together to American Le Mans racing series Barnhart said Indy Racing has In an interview with Crain’s, CIRCULATION Candice Yopp, Manager. inspect the Great Lakes cruise po- and the IndyCar Series race will be committed to a three-year contract Penske said it would cost more PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, tential. They’ll also visit the other held Sept. 2. and would not have added the race than $150 million to build a new (313) 446-0301 ports, including Toronto; Mack- “I know that we would not be if it wasn’t committed to making it racetrack to lure similar racing SUBSCRIPTIONS (313) 446-0450, (888) 909-9111 inac Island; Sault Ste. Marie; Port standing here but for the tenacious an annual event. events. Belle Isle, in contrast, al- TO FIND A DATE A STORY WAS PUBLISHED: Huron; Sarnia; Windsor; Toledo; effort of Roger Penske,” Kilpatrick “Detroit is recognized world- ready has much of the needed in- (313) 446-0367 or e-mail the Crain Information Center at [email protected]. and Duluth, Minn. said. “This is Motown, this is wide as the heart of the automo- frastructure. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY The visitors’ bureau is working where cars come from, this is tive industry and I can’t think of a “It’s the most efficient and low- CRAIN COMMUNICATIONS INC. with the Detroit/Wayne County Port where you have gotta have a race. better place to showcase our prod- cost way to do an event like this in CHAIRMAN Keith E. Crain Authority and area tourism and hos- … It’s time for us to have another uct,” Barnhart said. “Roger the city,” Penske said. PRESIDENT Rance Crain SECRETARY Merrilee Crain pitality organizations to showcase big-time event here in Detroit.” Penske’s involvement virtually Penske said the Downtown De- TREASURER Mary Kay Crain Detroit as a potential port for addi- Penske, chairman of the Down- guarantees and assures this event troit Partnership plans to estab- Executive Vice President/Operations tional Great Lakes cruise ships to town Detroit Partnership who also will be an improvement over pre- lish a separate nonprofit organiza- William A. Morrow Group Vice President/Technology, dock here when a new public dock was the Super Bowl XL Host Commit- vious races.” tion called Detroit Belle Isle Grand Manufacturing, Circulation and terminal are complete. tee chairman, said he began think- In the past, the race on Belle Isle Prix L.L.C. that will manage the Robert C. Adams Vice President/Production & Manufacturing O’Callaghan said the return of ing about attempting to bring rac- has received criticism for its sub- event. Plus, Penske said a mini- Dave Kamis the Grand Prix, as well as other ing back to Belle Isle shortly after par paddock, which is the infield mum of $100,000 from the race Corporate Director/Circulation Patrick Sheposh major recent events such as Super the Super Bowl and decided that area of the racetrack where race- would be donated to the Friends of G.D. Crain Jr. Founder (1885-1973) Bowl XL and the All-Star Game, his racing connections combined cars are parked. Penske said there Belle Isle, a voluntary organization Mrs. G.D. Crain Jr. Chairman (1911-1996) have generated momentum and with his experience working with are plans to create a permanent, that promotes the preservation of EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; make it easier to recruit other the city put him in a perfect posi- paved paddock area, as well as oth- Belle Isle. (313) 446-6000 tourism and sporting events. tion to land the event. er improvements to the western Also, only about two miles of the Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out Mayor Kwame Kilpatrick and “We learned a lot by hosting in- end of the island. more than five miles of perimeter of state, $79 one year, $138 for two years. the Downtown Detroit Partnership on ternational events — the Super Those improvements, Penske roadway on Belle Isle will be used Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Friday officially announced the re- Bowl, the Ryder Cup, the All-Star said, would cost the city about $1 for the race. Penske said the island Reprints: For inquiries call the reprints turn of auto racing on Belle Isle for Game — all of these things gave million to $1.5 million. will remain open during the event department at: (800) 494-9051, Ext. 144 , or at [email protected] the first time since 2001. the city tremendous momentum,” James Canning, Detroit’s to those who wish to use other CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 The Detroit Belle Isle Grand said Penske, owner of Penske Rac- deputy press secretary, said the parts of the island. is published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Prix is actually two separate races ing Inc. “But I think that as we look city already spends about $1 mil- One of Penske Racing’s drivers, Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send that will take place on Labor Day at these things, these are all one- lion or more on the island each Helio Castroneves, who was the address changes to CRAIN’S DETROIT BUSINESS, weekend in 2007 and could draw time events. We need to look at year and said, “We are confident winner of the last race held on Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in more than 100,000 attendees, said bookends for this city that are con- that the changes necessary to host Belle Isle, plans to compete next U.S.A. Brian Barnhart, president and tinuing not only for one year but Entire contents copyright 2006 by Crain the Grand Prix once again on Belle year. Communications Inc. All rights reserved. COO of the Indy Racing League. The would continue for many years to Isle will fit within our financial Brent Snavely: (313) 446-0405, Reproduction or use of editorial content in any Sept. 1, 2007, race will be part of the come.” constraints.” [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 10-02-06 A 34 CDB 9/29/2006 6:27 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 2, 2006 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 23-29

vious Dutch auctions, two Marshall; and Wayne Coun- furloughed today will be of which Foss did not par- Oakland County ty Commissioner Phillip Ca- followed by 70 more in mid- Owners change ticipate in — to reduce capi- vanagh to the board of direc- November, company tal on hand, which im- tors of the Wayne County spokeswoman Marge Sorge proves return on equity. women likely Land Bank Corp. said on Friday. Some could “We’re very comfortable ■ Pasquale Pistorio, re- be returned if Chrysler on 5 Post Bar with our capital position. tired president and CEO, sales rebound by year-end. We have more money than key to election STMicroelectronics; and ■ The Yardley, Pa.-based we need,” he said. George Schreiber Jr., presi- Journal Register Co. said “I think it’s a good sign ollege-educated dent and CEO, Semco Ener- Wednesday it plans to cut women between the locations that most of our sharehold- gy Inc.; to the board of di- 82 jobs and freeze wages in C ages of 40 and 50 in ers decided not to sell at rectors of Energy Conversion 2007 at its 67 Michigan pub- Oakland County and the ive Post Bar locations the Post Bar in the sale. Mt. $31.50,” Roberts said. “They Devices Inc. One appoint- lications, including The Oak- rest of Southeast Michigan have reportedly Clemens Property Partners thought it was a better opment is new, while the oth- land Press, Mt. Pleasant Morn- F changed hands, after acquired the building portunity to hold on to the will decide Michigan’s gu- er replaces Iris Ovishinsky, ing Sun, The Macomb Daily bernatorial race, said Ed having been bought by cur- through a right of first re- stock.” vice president, co-founder and The Daily Tribune of Roy- rent and former co-owners. fusal, said Jim Saad, also a Sarpolus, vice president of and board member, who al Oak. Steve and Jennifer Wheeler partner for Ira Township- polling agency EPIC-MRA. died Aug. 16. ■ The Detroit Regional — whose father, Pat, founded based Creative Development Ralph Roberts cheers Sarpolus, who spoke at ■ Jesse Bernstein to presi- Chamber on Wednesday said the bar in Detroit in 1978 — Group L.L.C. the Michigan Nonprofit Asso- Marlinga acquittal dent and CEO, Ann Arbor it would not endorse a gu- sold their stake in the metro ciation’s Nonprofit Day in Area Chamber of Commerce, Ralph Roberts was at a bernatorial candidate. Detroit bar and restaurant Lansing on Wednesday, from interim president. Credit Acceptance founder convention in New York on ■ A city of Detroit mora- chain. Four locations have said that same demograph- ■ Larry Smith, president of Wednesday when his mo- torium on accepting appli- gone to part-owner Mike scores big with buyback ic of women across the state Autometric Collision, to chair- bile phone started ringing cations for new gas stations McInerney, for an undis- also will have the strongest man of the Meadow Brook Credit Acceptance Corp. of- off the hook with friends has been extended to Sept. closed price. A fifth Post was impact on whether Propos- Concours d’Elegance. He re- fered to reward its share- and family telling him that 30, 2008, under an executive sold for $2.4 million to Mt. al 2 to ban affirmative ac- places the retiring Don holders this summer his name had been cleared. tion passes. order signed Wednesday by Clemens Property Partners Sommer, president of L.L.C., a new company made through a buyback of up to Roberts, a well-known “This is the group who Mayor Kwame Kilpatrick. American Arrow Corp. of ■ 3.5 million shares of stock Warren real estate broker, still have remnants of the Atlas Oil Co. on Tuesday up of four former part-own- Clawson. at a price between $28 and said it was “absolutely a issues of pro-choice, the announced it signed a sup- ers in the chain. ■ Joe Laymon, group vice $31.50 per share. “We’ve great feeling” to know that a glass ceiling and equal pay ply agreement with South Post Bars in Dearborn president of corporate hu- been very profitable over federal jury had acquitted for equal time and equal ex- Bend, Ind.-based retailer and East Lansing are under man resources and labor af- separate ownership. time, and this is a way of former Macomb County perience,” Sarpolus said. RMD Marketing L.L.C. to ex- giving back some money to fairs for Ford Motor Co., Steve Wheeler and McIn- Prosecutor Carl Marlinga of These women have been pand Atlas’ distribution op- shareholders,” said CEO stepped down last week as a erney declined to confirm bribery and fraud charges part of every issue for the erations in the Midwest. Brett Roberts. director of DTE Energy Co. in the sale, but real estate bro- stemming to 2004. Marlinga last 20 years and are the Romulus-based Atlas will It turns out most of Detroit to concentrate on ker Joe Sowerby said he was was accused of ones most likely to vote now be the sole supplier of the reward is going to Ford’s restructuring. told Wheeler divested his giving favorable against the Michigan Civil gasoline to and, in some a single shareholder — treatment to ownership in the chain. For- Rights Initiative, he said, cases, will own and market founder and Chairman two sexual-as- mer partner Jim Saad con- “Four years ago this is BRIEFLY the gasoline for 19 RMD- Donald Foss. Foss ten- sault cases in owned Marathon and Citgo firmed he heard the loca- (also) the group that provid- ■ Compuware Corp. (Nas- dered 19.5 million of 2001 and 2002 in tions in Auburn Hills, ed (Gov. Jennifer) Granholm service stations in Indiana the more than 20.5 mil- exchange for daq: CPWR) on Monday Detroit, Novi and Ferndale … a win with a small mar- United Physicians P.C. and Kentucky. lion shares offered, ac- campaign con- said ■ are now owned by McIner- gin in Oakland County.” General Motors Corp. an- cording to a Securities tributions from will use Covisint to built an ney. A Post employee, who online physician portal that nounced Friday that it will and Exchange Commis- Roberts. move a major chunk of its wished to remain anony- sion filing. Marlinga was White House taps Ghafari will let the group’s 1,700 Ralph Roberts corporate-ad account from mous, said the four are ex- Why offer so many? acquitted on members share patient in- pected to remain Post Bars for Lebanon aid effort formation electronically to McCann Erickson in Birm- Apparently, it ensured two counts of bribery, one ingham to sister agency with minor renovations. Yousif Ghafari, chairman avoid medical errors and most of the 3.5 million of wire fraud, one of mak- Deutsch of Los Angeles, Ad- The Mt. Clemens bar and of Dearborn-based Ghafari duplication of services. shares bought would be his. ing false statements to the vertising Age reported. restaurant on Aug. 17 Inc., and three other execu- ■ Kenwal Steel Corp. The company announced Federal Election Commission ■ Brenda Braceful, deputy closed its doors as a Post that based on the number of and one of exceeding cam- tives of U.S. companies an- Chairman and CEO Kenneth and reopened about a week nounced on Monday the for- Eisenberg and his wife, director of the Detroit Law shares tendered, all those paign contribution limits. Department, has been ac- later as Madison’s Mt. offering to sell would re- mation of the U.S.-Lebanon Frances, have donated $5 A jury set aside a first cused of misappropriating Clemens bar, said Saad, a de- ceive $31.50 a share but Partnership Fund to provide million to the University of round of charges in July $14,000 from a client when veloper and partner of Mt. would only be able to sell 2005, including allegations resources and infrastruc- Michigan. The gift, which she was in private practice, Clemens Property Partners. about 17 percent of what of mail fraud against ture repair to parts of will support the Frances the Detroit Free Press re- Saad, his brother Bryan they had offered. In Foss’ Roberts. Marlinga was rein- Lebanon damaged by war. and Kenneth Eisenberg In- ported. Saad, and Brett Armstrong case, that works out to 3.3 dicted last September. And Ghafari, who was born in stitute for Historical Stud- and Chuck Towner have million-plus shares, or though Roberts wasn’t Lebanon, was chosen by ies at UM, is the largest spent nearly $400,000 on about $104 million. charged, he said Wednes- President Bush to launch ever received by the uni- OBITUARIES renovations, he said. Madi- the donation campaign, versity’s Department of Treasurer Douglas Busk day’s verdict also clears his ■ Elaine Balasky, former son’s Mt. Clemens is set to name. which will complement the History. said the sale would reduce president of the Livingston open its kitchen with a new “I prayed every day that $230 million the president Also, UM on Tuesday an- Foss’ ownership from about County United Way, died of menu Thursday. 69.5 percent to about 65 per- this cloud over the top of pledged last month to aid nounced a $4 million gift complications from pneu- Sowerby, a partner at Mt. cent. He said the company’s my head would be taken rebuilding efforts. from the Switzerland-based monia Sept. 23. She was 69. Clemens-based Anton, Zorn & rationale for this auction away and if finally hap- The other executives are: Francois-Xavier Bagnoud ■ William Fulgenzi, 73, an Sowerby Inc., represented was the same for three pre- pened,” Roberts said. Craig Barrett, chairman, Intel Foundation, which brings Corp.; John Chambers, presi- the foundation’s support to orthopedic surgeon who dent and CEO, Cisco Sys- a total of $12.8 million and had been chief of staff at St. tems Inc.; and Ray Irani, will establish the Francois- Joseph Mercy Hospital in De- chairman, president and Xavier Bagnoud Flight Ve- troit and Bon Secours Hospi- CEO, Occidental Petroleum hicle Institute in the De- tal in Grosse Pointe, Corp. partment of Aerospace drowned Sept. 19. ■ Bless you, blogs — keeping tabs on the Tigers The fund’s Web site is Engineering. Natividad “Nati” Jenks, ■ I’m comfortable admitting I haven’t daily. He’s been doing it since 2001, www.lebanonpartnership. Milwaukee-based John- 66, former executive direc- always been a fan of Major League well before the Tigers were one of org. son Controls Inc. (NYSE: JCI) tor of the Asian American Baseball, but I’ve always liked the baseball’s top dogs. said Wednesday that it is Center for Justice, died of a Detroit Tigers. The past four seasons, Blessyouboys.com features postings N THE MOVE cutting 250 jobs at its tech- brain hemorrhage Aug. 27. thanks to fantasy baseball, I’ve in a similar vein with a little more O nical centers in Plymouth ■ Samuel Posner, who followed them tirelessly, through analysis from the authors. The blog ■ Steve Yzerman has be- and Holland in order to ad- founded a law firm in De- some of their worst seasons ever. features a variety of links to stories come a vice president for just to production cuts an- troit, died of congestive My relief came last week when they from around the league that have the Detroit Red Wings, after nounced recently by its cus- heart failure Sept. 25. He clinched a playoff spot. Here’s just a Detroit impact as well. spending 22 years as a play- tomers. was 90. few of the many sites I use to keep And if message boards are more your er with the team, 20 as its ■ Metaldyne Corp. is ex- ■ Pattie West, a founding an eye on those wearing the Olde style, chat it up at motowntigers.com captain. pected to begin the first of member of Creekside Com- English D. WEB WORLD where users interact and give some ■ George Barnes, founder, two rounds of layoffs today munity Development Corp. in lively debate via forums. Bill Ferris over at Daniel Eizans Heritage Optical Co.; at a plant in New Castle, Detroit, died of cancer Sept. Detroittigersweblog.com updates Go Tigers! Wayne County COO Bella Inc. The 87 employees to be 8. She was 64. DBpageAD.qxd 9/1/2006 12:46 PM Page 1

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SmallbusinessownersneedSmall business owners need to be a little tougher than most.

Make your life a little easier with our Free Small Business Checking account. You’ll get 500 free transactions per month,* with no minimum balance or monthly maintenance fee. Plus, we offer free online banking and Bill Pay. And you’ll also receive a $100 MasterCard® Gift Card.** For more information, call (800) 697-3300 or visit one of over 260 LaSalle Branch locations. More options. More convenience. More to get it done.

lasallebank.com

*An Excess Transaction Fee of $0.50 will be applied to each transaction over the monthly limit. Special Service Fees may apply. **Offer available until October 31, 2006 and is for new accounts only with funds not currently on deposit. $100 minimum deposit required to open account. $500 minimum deposit required to earn $100 Gift Card bonus. Bonus cannot be used as minimum deposit. Gift Card is limited to one new Free Small Business Checking account, may not be combined with any other offer, is not transferable, and may be considered income to you for tax purposes. Please see the LaSalle Bank Gift Card Promotion Agreement for complete details. MasterCard® is a registered trademark of MasterCard International Incorporated. LaSalle Bank Midwest N.A. Member FDIC. ©2006 LaSalle Bank Corporation.