20090629-NEWS--0001-NAT-CCI-CD_-- 6/26/2009 6:21 PM Page 1

®

www.crainsdetroit.com Vol. 25, No. 26 JUNE 29 – JULY 12, 2009 $2 a copy; $59 a year

©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved

Page 3 Where did plans for Detroit Kroc Center go wrong? Detroit, Ontario ‘angels’ unite New anti-foreclosure law requiring loan modification New public company hopes to raise $20M in seed money may increase lender jobs BY TOM HENDERSON The company has started the navigate the rules of the stock ex- economic times, it may well find a CRAIN’S DETROIT BUSINESS process of being listed on the ven- change. group of interested investors.” ture exchange Nouveau’s founders think it is Nouveau’s founders hope their Inside The pool of investment money of the Toronto the first public company in the cross-border alliance will be repli- available to local startups and HOW IT WORKS Stock Ex- U.S. or Canada to facilitate angel cated in the Toronto-Niagara Hendrix and young high-tech companies is Canada’s way: A change and investing, and so does Jim Jaffe, Falls-Buffalo and Seattle-Vancou- Bing team about to get larger. different approach hopes to be president and CEO of the National ver regions. Detroit-based Great Lakes Angels to public funding, trading by the Association of Seed and Venture Angel investors, generally of probe Detroit has joined forces with angel Page 21 end of the Funds. high net worth, usually fund very problems, groups in Toronto and London, year. It grew “There are some angel groups early-stage companies and are Ontario, and with the University of out of a meeting the Great Lakes that have formed private funds termed angels because they help Page 4 Windsor to form Nouveau Angel Capi- Angels held last June at the Grosse that operate like mutual funds, but keep companies alive until they tal Corp., which hopes to raise $20 Pointe home of Canadian Consul I’m not aware of any public compa- grow to the point where they can Credit crunch forces CDCs million to invest in early-stage General Robert Noble, whose staff nies doing this,” he said. “The con- get funding from venture-capital- companies in Southeast Michigan was instrumental in getting the cept is exciting and unusual. My to scale back, Page 13 and southwestern Ontario. parties together and helping them guess is that even in these difficult See Angels, Page 21 Leadership Detroit asks alumni to help tackle regional issues, Page 18 State’s wind energy biz gets big lift Budget bill would cut Medicaid reimbursement. $100 million GE investment Capitol Briefings, GOING WITH THE WIND Investment by General Electric Co. in high-tech manufacturing and clean Page 19 energy R&D brings North America’s largest wind-turbine manufacturer to key to building supply chain Southeast Michigan, adding to a series of recent investments by companies involved in wind energy: BY DANIEL DUGGAN Specialists in the wind energy ‘Holiday edition’ AND RYAN BEENE field say Michigan still lags other Ⅲ Turbines: Global Wind Systems Inc., Novi. Assembles turbines, CRAIN’S DETROIT BUSINESS states, especially those with wind blades and towers. Danotek Motion Technologies L.L.C., Plymouth. Special online issue coming energy OEM operations. Produces generators for use in turbines. With General Electric Co. making But a research and development This week’s print edition of a $100 million investment in Van facility from GE is a major build- Crain’s Detroit Business will Buren Township, the region will ing block, said Wallace Hopp, a Ⅲ Blades: A potential venture cover the weeks of June 29 have the largest wind turbine and July 6, and a special supply chain expert and professor between MAG Industrial Automation manufacturer in North America digital “holiday edition” will be of manufacturing, operations and Systems L.L.C., Sterling Heights, available online beginning the as a presence. management at the University of and Dowding Machining Inc., Eaton evening of July 4. The digital The proposed facility marks an- Michigan’s Ross School of Business. Rapids. Would also build machine issue will be in a format that other key component of Southeast “The modern world of the sup- tools for manufacturing turbine readers can print for portability Michigan’s growing wind energy ply chain is that the suppliers, par- components. and will resemble the print supply chain, which now includes ticularly the top-tier suppliers, edition, including advertising. companies that plan to specialize aren’t just material providers, If you are a paid subscriber in manufacturing of blades, tur- they’re also co-developers,” he Ⅲ Towers: Ventower (formerly Great who is already registered on bines, generators and towers in ad- said. lakes Towers L.L.C.), Monroe our Web site, you don’t need dition to the tools needed to manu- ISTOCKPHOTO.COM to do anything more. You will facture the components. See Wind, Page 18 automatically receive an e-mail link. Paid subscribers who have not registered can go to crainsdetroit.com/digitaledition to get set up. At the same time, you’ll be able to subscribe to our free daily, weekly and specialty e-mail Wings’ quest for new lease a step to new arena? newsletters. For more information about how to do BY BILL SHEA tenants won’t talk about it. itch bought the Tigers for $82 mil- A new hockey venue is estimat- this, see the advertisement on CRAIN’S DETROIT BUSINESS Neither will the city. lion in 1992, and the team was ed to cost $300 million to $400 mil- Page 12. Coy is a polite way of character- worth $200 million in 2000, accord- lion. The Pittsburgh Penguins, who Paid subscribers with Perhaps Detroit’s worst-kept se- izing the public face put on the ne- ing to Forbes.com. Today, it’s val- just vanquished the Red Wings in questions or who want cret is the Red Wings’ desire for a gotiations over city-owned Joe ued at $371 million. the Stanley Cup finals, move next assistance in the process may new hockey arena. Louis Arena and the master lease New stadiums, with numerous season into the $321 million Consol call (888) 909-9111 for help. The team’s owners, Mike and held by the Ilitches. modern suites and naming rights Energy Center after 48 years at Marian Ilitch, and their lieu- To get a sense of the prevailing deal, offer revenue streams that Mellon Arena — a fact not lost on winds, however, all one has to do old facilities cannot. the Wings. is look from Joe Louis across town So what’s good for the Tigers is The team, bought for $8 million to Comerica Park, where Mike Il- certainly good for the Red Wings, by the Ilitches in 1982 from former itch’s Detroit Tigers play. The stadi- says conventional wisdom. After owner Bruce Norris, is worth $303 um opened in April 2000 at a cost of all, hockey insiders say 30-year-old million today, according to Forbes. $300 million financed by Ilitch, the Joe Louis would require $150 mil- Joe Louis was built by the city for city, Wayne County and corporate lion in renovations to get it within $30.3 million in 1979 and financed investors. sniffing distance of the revenue- with municipal bonds.

NEWSPAPER The new venue had a positive ef- generators that dot the National fect on the team’s bottom line: Il- Hockey League. See Arena, Page 18 20090629-NEWS--0002-NAT-CCI-CD_-- 6/26/2009 5:48 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 29, 2009

House Bill 4183, sponsored by able use. Hison as chairman in 2010. now occupies the former head- THIS JUST IN Richard Ball, R-Laingsburg, and — Nancy Kaffer Hison has served on the Shores quarters of bus components mak- House Bill 4476, sponsored by City Council since 1984, and has er Transpec Worldwide Inc. Parsons Brinckerhoff wins Kathy Angerer, D-Dundee, GM to end Auburn Hills lease been mayor since 2004. He is a The incubator’s first two ten- $3M highway contract amend insurance laws to require A hearing is set for Tuesday for member of SEMCOG’s executive ants — Lighthouse Molding Inc. and coverage in group policies for the General Motors Corp. to terminate committee and a past chair of the GeoTech L.L.C. — acquired leases The Michigan Department of diagnosis and treatment of a 43,000-square-foot lease in SEMCOG Finance and Budget within the past several weeks to Transportation awarded Detroit- autism spectrum disorder. Auburn Hills as part of a move to Committee. occupy nearly 4,000 square feet based Parsons Brinckerhoff the The bills, passed last week, have end 41 leases around the country. The SEMCOG General Assem- between them at the new site. $3 million design contract for the been referred to the Senate Eco- The lease is held by GMAC L.L.C. bly also made one addition to its Spencer said the incubator reconstruction of the I-69 and I-94 nomic Development and Regulato- at 900 North Squirrel in Auburn annual slate of officers: Schoolcraft should move out of the former interchange as part of the ry Reform Committee, chaired by Hills, according to a schedule of College Trustee Joan Gebhardt. Venture Industries building by $533 million new Blue Water Alan Sanborn, R-Richmond. leases to be terminated, filed in — Chad Halcom the end of the month. Bridge plaza in Port Huron. — Amy Lane bankruptcy court. Ron Lamparter, president and The project involves four miles The building is owned by owner of Transpec, recently sold Macomb-OU biz incubator the business to a buyer who relo- of roadway and eight bridges. Changes to U.S. SBA loan Johns Creek, Ga.-based Piedmont Work is scheduled to begin in Office Realty Trust. The 120,000- gets new home, tenants cated the work out of state; but he 2011 and be finished in 2012. program to help small biz square-foot building is 17.8 per- still owns the building where it The Macomb-Oakland University was located and is lending it for The company also built and fi- Changes to the U.S. Small Busi- cent vacant with GMAC in place, nanced the Detroit-Windsor Tunnel dropping to 54 percent, according Incubator for defense and home- incubator use, Spencer and ness Administration’s 504 Certified land security businesses has new Cassin both said. in 1928 and designed Detroit’s Development Co. loan program to information from Bethesda, $18.3 million Rosa Parks Transit M.D.-based CoStar Group. digs and new tenants and should OU, the county and Sterling should help small businesses vacate this week the former Ven- Heights late last year sought and Center, under construction now at seeking to expand. — Daniel Duggan Cass and Michigan avenues. ture Industries site on 15 Mile Road obtained a Michigan SmartZone They will be able to refinance where it opened last fall. business accelerator district desig- The plaza project, which has existing loans used to purchase SEMCOG elects officers been nearly as controversial in David Spencer, executive direc- nation within the city, to include real estate and other fixed assets, The Southeast Michigan Council St. Clair County as the Detroit tor of SmartZone development at the incubator. Cassin said the new according to a statement released of Governments general assembly River crossing projects in De- OU Inc., the university’s on-campus location on Sterling Ponds Court last week by the SBA. elected St. Clair Shores Mayor troit, is aimed at reducing bor- business incubator, and Director north of 14 Mile still falls within The changes, authorized in the Robert Hison as chairman at the der congestion, improving secu- Stephen Cassin of the Macomb the SmartZone district. American Recovery and Rein- organization’s annual meeting rity and replacing aging County Planning and Economic A grand opening ceremony at vestment Act of 2009 — common- late last week. infrastructure. Development Department, both the new location is planned July 20. ly referred to as “the stimulus Hison, 64, succeeds Mary — Bill Shea confirmed last week the incubator — Chad Halcom package” — will allow small busi- Blackmon. Blackmon is secretary nesses to restructure eligible of the Wayne County Regional Edu- Bills requiring autism debt. cational Service Agency and presi- CORRECTION coverage pass House The SBA’s 504 loan program is dent of the Detroit Water and Sewer- Ⅲ A story on Page E15 of the June 22 edition incorrectly listed the 2008 for the purchase of business real age Board of Water Commissioners. stock award value and total compensation for Michael Tierney, CEO of Bills requiring health insur- estate or fixed assets such as Clinton Township supervisor PSB Group Inc. The figures were taken from PSB’s original proxy state- ance companies to cover treat- heavy equipment or machinery. Robert Cannon was elected first vice ment, which contained a typographical error that has been corrected ments for autism have passed the Expansion of current develop- chairman during the annual meet- by the company. Tierney’s actual stock award for 2008 was $57,335 and state House. ment projects is also an accept- ing. He will immediately succeed his total compensation was $356,592.

Engineer a Brighter Future

Lawrence Technological University is leading the way toward a safer world with the development of innovative materials designed for defense, homeland security, and infrastructure applications. From protecting soldiers to strengthening bridges, Lawrence Tech students are committed to using cutting-edge technology to create a brighter future.

Visit ltu.edu/applyfree to have your application fee waived! What if They Threw

Explore over 20 master’s and doctoral programs in architecture, business administration, communication, computer science, a Traffic Jam . . . information systems, interior design, engineering (civil, mechanical, electrical, and computer), and science.

Lawrence Technological University 21000 West Ten Mile Road, Southfield, MI 48075-1058 800.CALL.LTU [email protected] ltu.edu AND NOBODY CAME?

Vanpooling Green. Simple. Sustainable.

1.800.Van.Ride www.MichiVan.com/GREEN 20090629-NEWS--0003-NAT-CCI-CD_-- 6/26/2009 6:29 PM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 3

HOUSING STATS FOR THE REGION Focus: Defense Industry In May, 13,891 homes in Michigan were involved in foreclosure, according to RealtyTrac Inc. of Rejected $48M pledge Irvine, Calif. State laws taking effect July 5 could drive down foreclosures and change the landscape for lenders. Here’s a sampling of regional housing vital signs: Foreclosures in April Ⅲ Macomb County: 605 sent Kroc center awry Ⅲ Oakland County: 870 Economy driving more Ⅲ Wayne County: 1,521 Source: Default Research Inc. of Mount In the end, even $5M gift companies into defense Pleasant contracting, Page 9 Southeast Michigan home sales* eluded local Salvation Army Ⅲ Foreclosure: 3,586 Ⅲ Non-foreclosure: 2,369 BY SHERRI BEGIN WELCH An anonymous Salvation Company index Source: MLS RealComp II Ltd. of CRAIN’S DETROIT BUSINESS Army donor agreed to open doors Farmington Hills to other potential donors. These organizations appear in this week’s Crain’s The Salvation Army Eastern “We anticipated that 80 per- A rendering shows the canceled Detroit Business: Median home sale prices* Michigan Division came close to se- cent of the loan could be (paid off) Detroit Kroc Center. See the full image at www.crainsdetroit.com. ArvinMeritor ...... 9 Ⅲ Foreclosure: $26,400 curing matching funds for the by that effort,” Harvey said. “The Automation Alley ...... 9 Ⅲ Non-foreclosure: $110,000 now-defunct $98 million Detroit goal was to pay it off as quickly as ROCKY ROAD Bagley Housing Authority ...... 13 Ⅲ Kroc Center project, but in the possible, over a five-year period.” BAE Systems U.S. Combat Systems ...... 9 Overall: $50,000 Ⅲ Source: MLS RealComp II Ltd. of end the commitment didn’t mate- Harvey, who’d been serving as 2003: Joan Kroc estate leaves Beztak Cos...... 4 Farmington Hills rialize and the army was unable a part-time fundraising consul- $1.5 billion to the Salvation Army Biotechnology Business Consultants ...... 10 network to build and endow * Lapeer, Livingston, Macomb, Oakland, to raise matching money for even tant and internal head of the centers across the country. Bolton Conductive Systems ...... 9 St. Clair and Wayne counties a downscaled Kroc project. Kroc campaign for the Eastern Coalition for Fair and Efficient Government ...... 19 By April it became clear the Michigan Division, left in the fall Ⅲ 2005: Salvation Army Eastern Michigan Division wins $50 million Community Development Advocates of Detroit . . . . 13 army was spending as much of 2007 after his contract was not Kroc grant to build a 100,000- Communities by Beztak ...... 4 money on fundraising as it was renewed. square-foot center on Detroit’s Default Research ...... 21 actually raising for the project. Officials of the Salvation Army east side, launches five-year Detroit Red Wings ...... 1 Foreclosure And that was the death knell USA Central Territory met with campaign to raise $48 million in Detroit Regional Chamber ...... 18 for $50 million in funding from representatives from the Webber matching funds. Fifth Third Bank ...... 21 the estate of Joan Kroc to fund a Foundation but did not approve Ⅲ 2007: The Wayne and Joan General Dynamics Land Systems ...... 9 100,000-square-foot center on De- the proposal because it “was not Webber Foundation signals some General Electric ...... 1 picture soon troit’s east side. a viable deal,” said Col. Carol interest in fronting the $48 million General Sports and Entertainment ...... 18 Wayne Webber, who sold his Seiler, territorial coordinator for until it can be raised and paid back, Grace & Wild ...... 14 Houston-based heavy highway strategic mission planning. Seil- a proposal later turned down. Grandmont Rosedale Development ...... 13 construction company, W.W. Web- er added that one of the biggest is- Ⅲ Fall 2007: Early fundraising Great Lakes Angels ...... 1 leaders leave the Salvation Army to change ber L.L.C., in 2005, and his wife, sues was the transfer of owner- Harvey Hohauser & Associates ...... 18 and campaign. Joan, offered to front the full $48 ship. Ⅲ Ilitch holdings ...... 18 million match until the money The Clinton Township-based November 2008: Salvation Army Lanzen Fabricating ...... 9 Loan modification could be raised. Webber Foundation declined to USA Central Territory gives Eastern Michigan Division until April to LoanMod.com ...... 3 In a June 2007 letter to the for- comment. secure a lead gift of $5 million or Local Initiatives Support ...... 13 may add lender jobs, mer internal head of the Kroc The division more. MAG Industrial Automation Systems ...... 18 campaign, Col. Clarence Harvey, followed up Ⅲ April 17: USA Central Territory Michigan Bankers Association ...... 21 help homeowners the Wayne and Joan Webber Founda- with the Web- pulls its grant commitment from Michigan Department of Community Health ...... 19 tion said the Webbers might be in- bers after the the Eastern Michigan Division after Michigan Health & Hospital Association ...... 19 BY DANIEL DUGGAN terested in assuming the obliga- deal fell apart, it raises only $3 million. Eastern Miller Canfield Paddock and Stone ...... 4 CRAIN’S DETROIT BUSINESS tion of building the Kroc center but they were Michigan Division said it plans to MLS RealComp II ...... 21 and leasing it to the Salvation no longer in- build a $6 million, 20,000-30,000- Nouveau Angel Capital ...... 1 Companies in the residential Army for the cost of construction terested in sup- square-foot community center on Oakland University ...... 21 real estate industry are gearing up not covered by the Kroc money. porting the Detroit’s east side in lieu of the Olympia Entertainment ...... 18 for changes in the foreclosure Kroc center. Any remaining portion owed project, said Ⅲ Phrixus Pharmaceuticals ...... 19 process to take effect next month. on the loan would have been for- Lt. Col. Nor- Tuesday: The Save Our Kroc R. Cushman & Associates ...... 9 Many hope that the law will given in the event of the Web- Marshall man Marshall, Coalition plans to bus 150 residents to USA Central Territory Redmond Law Firm ...... 21 push more homeowners to seek bers’ deaths. The foundation was commander of the Eastern Michi- Rock Tops ...... 20 help from their lenders before it is headquarters in Des Plaines, Ill., to willing to work with the Salva- gan Division. protest the loss of the $50 million Sabre-Tec ...... 9 too late by requiring lenders to of- tion Army to meet its needs, the grant. Salvation Army Eastern Michigan Division ...... 3 fer loan modifications to people letter said. See Kroc, Page 20 Small Business Association of Michigan ...... 19 with a steady income. Southwest Solutions ...... 13 For Moose Scheib, chairman Specs Howard School of Broadcast Arts ...... 14 and CEO of loan modification com- TechTown ...... 21 pany LoanMod.com in Dearborn, Trott & Trott ...... 21 the law presents an opportunity to University of Western Ontario ...... 21 work with more consumers. He is VC role sticking point for new SBIR funding University of Windsor ...... 1 also pursuing lenders for work to U.S. Army Tacom Life Cycle Management Command 9 contact homeowners on their be- BY NANCY KAFFER wouldn’t need SBIR funds if the tics are available, 99 of 551 Michi- Warren/Conner Development Coalition ...... 20 half. CRAIN’S DETROIT BUSINESS often-unproven technology gan SBIR proposals were funded, Wayne State University ...... 21 “This is a huge opportunity for they’re peddling could attract according to the Ohio-based non- W Industries ...... 9 us,” he said. The federal government’s Small venture capital. profit State Science and Technology Warren/Conner Development ...... 13 Gov. Jennifer Granholm signed Business Innovation Research fund On the other side, proponents Institute. Wayne and Joan Webber Foundation ...... 3 the set of three laws May 20. It is big — worth $2.5 billion in the of the change say that VC backing SBIR expired last year, but the Weir Manuel Realtors ...... 21 takes effect July 5. past fiscal year. doesn’t equal carte blanche, and U.S. Senate and House couldn’t Under the laws, a lender must But some small-business advo- that companies who’ve attracted agree on the terms of reauthoriza- send a homeowner a notice of de- cates say changes to the fund that outside funds shouldn’t be penal- tion — VC figured large in that de- Department index fault and give 14 days to contact a would confer eligibility for SBIR ized for it. bate — and issued a one-year ex- credit counselor. If the homeown- grants or contracts on a wider SBIR is a federal fund set aside tension, which expires July 31. BANKRUPTCIES ...... 19 er responds, he or she is given 90 range of companies with venture- for 11 federal agencies to allocate It’s the House SBIR reautho- BUSINESS DIARY ...... 16 days to work out a loan modifica- capital backing could funnel dol- to tech-oriented small-business rization bills that would widen CALENDAR ...... 17 tion with the lender. Currently, a lars away from small businesses owners. That’s 2.5 percent of the the threshold for VC-backed CAPITOL BRIEFINGS...... 19 homeowner can lose the title to a that rely on SBIR to bring tech government’s research and devel- firms, but the Senate has a com- CAREERWORKS ...... 14 home in five weeks. products to market. opment money. peting version of SBIR reautho- CLASSIFIED ADS ...... 16 If a loan modification arrange- The argument goes like this: In fiscal 2006-07, the most re- rization sans VC provisions, said KEITH CRAIN...... 6 See Foreclosure, Page 21 Small, tech-oriented companies cent year for which such statis- See SBIR, Page 19 LETTERS...... 6 MARY KRAMER ...... 7 Inside baseball On the calendar OPINION ...... 6 See what’s happening this week on THIS WEEK @ From the Tigers on Twitter to the latest about the corner PEOPLE ...... 15 of Michigan and Trumbull, reporter Bill Shea’s blog will Crain’s events calendar www.crains WWW.CRAINSDETROIT.COM keep you up to date: www.crainsdetroit.com/shea detroit.com/section/events RUMBLINGS ...... 22 WEEK ON THE WEB ...... 22 20090629-NEWS--0004-NAT-CCI-CD_-- 6/26/2009 4:24 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 29, 2009

GEOTECHNICAL YOUR DIRT ENVIRONMENTAL Depth of Detroit’s problems CONSTRUCTION IS OUR ENGINEERING ‘an awakening’ to Bing team

BY NANCY KAFFER counsel at Clark Hill plc and former strategy in the city’s purchasing OBSESSION CRAIN’S DETROIT BUSINESS president of Ilitch Holdings Inc. department. The turnaround team’s third co- “We just introduced Six Sigma, Fifty days into a 100-day mis- chair, retired Ford Motor Co. execu- and if there’s a strong interest, we All of us at G2 share a single-minded obsession with unearthing sion, members of Detroit Mayor tive Joe Walsh, was traveling and have a volunteer willing to help every obstacle and opportunity on your site – from topsoil to bedrock. Dave Bing’s crisis turnaround not available for comment, accord- share those tools and processes,” So leave the dirty work to us. It’s what we live for. team say they’re digging deep into ing to Meagan Pitts, Bing’s deputy she said. Detroit’s troubled finances and press secretary. Hendrix said he expects more systems — with grim findings. Bing, who won his seat in a May recommendations in the next 50 Troy, MI: 248.680.0400 In a city plagued with problems, special election, sparked contro- days. Brighton, MI: 810.224.4330 the financial situation is the worst versy during the campaign when “We are just coming to that place Chicago, IL: 847.353.8740 of the lot, say two of the team’s news broke that he planned to use where enough conversation has www.g2consultinggroup.com three co-chairs. a pro bono turnaround team to been had with the city side that “We are cash-strapped, that’s help right the listing city. Some these volunteers are now begin- the bottom line,” said co-chair Fre- critics deemed the plan unwanted ning to amass recommendations,” man Hendrix, a former Detroit outside intervention. he said. “We have reached a point Individual where recommendations have be- UNEARTHING POSSIBILITIES deputy mayor. “The city is team members gun to be brought forward and or- cash-strapped for The city is cash- contacted by ganized in such a way that they can money to run “ Crain’s deferred be offered up to the mayor and his itself and to strapped for comment to the administration for consideration.” provide day- co-chairs. By the end of the hundred days, to-day basic money to “The teams Ilitch said, the team expects to services, so as they have have a detailed list of recommen- we have cer- run itself been organized dations. tainly devel- have sort of Detroit City Council member Big Beaver Area Office Suites For Lease oped a sense and to fanned out JoAnn Watson said she’s pleased WELL BELOW BIG BEAVER OFFICE RENTAL RATES!!! of urgency across key de- with the team thus far. among our- provide partments and “I give them high marks,” she selves within divisions said. “It’s a climate that has lent it- this 100-day peri- day-to-day through city self to a lot of two-way situations od.” government and a lot of openness to sugges- Detroit’s deficit basic services. and are work- tion.” is projected at $280 ” ing in a consul- Detroit City Council member million, and re- Freman Hendrix, tant’s role,” Sheila Cockrel said she’s studied cent reports have Detroit crisis turnaround team Hendrix said. reports on the transitions between said that the city improperly used “They’re talking to staff-level former mayors from Roman tax revenue meant for other enti- folks, asking questions about state Gribbs, who served from 1970 to ties to pay its bills. of the city’s IT systems, budget 1974, to current City Council Presi- For Hendrix, who served under processes, finance issues and so dent Ken Cockrel Jr., who served KIRTS OFFICE PARK - EAST KIRTS OFFICE PARK - WEST former Mayor Dennis Archer, a forth … there’s no real template for as the city’s interim mayor for 800-830 Kirts, Troy, MI 1172-1282 Kirts, Troy, MI worm’s eye view of Detroit’s finan- this work we’re doing. This is not about six months. Suites From 2,588 to 15,523 SF Suites From 1,199 to 30,000 SF cial situation has been a rude like any other transition process.” “What is fascinating to look at is awakening. The team has swelled to about that the big picture issues remain • 8 Single Story Buildings from 12,500 SqFt For More Information, Please Call: to 35,000 SqFt “It’s tough,” he said. “It’s been 40, Ilitch said. the same over the entire era,” she • Building Signage Available 248.324.2000 an awakening, the extent to which An initial 26-person list of team said. • Easy Access to I-75/Big Beaver Corridor systems and processes have been members skewed heavily toward “I think this is a group of really • Conveniently Located in the Heart of Troy neglected, not attended to, left to attorneys, with 11 attorneys from talented, serious individuals who • Ample and Convenient Parking drift. It’s an unfortunate but not Detroit-based Miller, Canfield, Pad- are on this crisis management surprising state of affairs. But it’s dock and Stone P.L.C. comprising team, and I think there’s a sense of www.friedmanrealestate.com a lot more acute than I think many the majority of the group. seriousness about making a real of us really anticipated.” The team has worked a cumula- contribution on the part of the peo- “Challenging” is the word co- tive 476 hours in the past 50 days, ple I’ve talked to on and around chair Denise Ilitch uses. Ilitch said, averaging about 15 this team. … I just hope they go far “That we are a ‘crisis’ team says hours per volunteer. enough to create an opportunity it all,” said Ilitch, owner and pub- One example Ilitch offered of a for the city to re-engineer itself.” lisher of Ambassador magazine, team suggestion was the use of the Nancy Kaffer: (313) 446-0412, World Famous Trademark- owner of Denise Ilitch Designs, of Six Sigma business management [email protected] WorldClassOpportunity Ever Dream of Owning Floodplain complicates base redevelopment your own business? BY CHAD HALCOM redeveloped are: the northeast cor- government entity, said Lt. Col. CRAIN’S DETROIT BUSINESS ner of the base including the for- Mac Crawford, land and facilities The 7-Eleven Franchise System* offers mer U.S. Army Garrison, the coordinator at Selfridge. individuals to operate their own ready-to- Costs aren’t all that might rise on southeast corner with historic offi- The redevelopment is still pro- operate neighborhood convenience store a proposed redevelopment of por- cer quarters and a golf course, and ceeding with just a few added costs. under the auspice of a world famous tions of Selfridge Air National Guard the southwest corner that houses Among them, Beztak expects it will trademark. We take an active role in the Base in Harrison Township — the some government agencies such as have to add fill material in several franchisee’s business because our elevation of the development itself the U.S. Border Patrol. The Army of- areas to elevate proposed buildings success is predicated on their success. will have to climb because of unex- ficially vacated the property last at least one foot above the flood- pected flooding considerations. fall under a 2005 military base plain for insurance purposes. Contact us today Development originally was ex- alignment and downsizing plan. “Some portions of it we expect to to see if you qualify: pected to be under way earlier this U.S. Air Force officials later have ready for use much sooner year, when Communities by Beztak learned a study by the Federal (than others),” Salomon said. “The Call 630-366-3328 L.L.C., one of the Beztak Cos. in Emergency Management Agency golf course is already there, and the Farmington Hills, first won a con- placed nearly all of the northeast child development center can just Or visit us at tract in late 2007 to redevelop more corner property and a portion of as easily be used by a private ten- www.7-Eleven.com than 700 acres in three locations of the southeast property below the ant. We’ve already talked to a well- base property for civilian use, said 100-year floodplain, complicating known day care provider about Beztak Executive Vice President lending and insurance issues for that.” Bob Salomon. the private developer that hadn’t Chad Halcom: (313) 446-6796, * Moderate financial resources and business experience are required to franchise a store The three areas of the base to be been a concern for the self-insured [email protected] DBpageAD.qxd 6/24/2009 4:25 PM Page 1

Call 866-501-DOCS for a physician referral

They’re more than just cardiovascular doctors in your area. They’re some of the best in the nation.

A nationally recognized cardiovascular care program takes great leadership and passion. And at St. John Health System you’ll find both. Our outstanding heart team—led by these experienced physicians—consistently ranks among the best in the nation. When it comes to your heart health, choose our experienced team. You’ll find them practicing at the only healthcare system in the area with three Cardiovascular Centers of Excellence. For more information about our Cardiovascular Centers of Excellence located at St. John Hospital & Medical Center, Providence Hospital, and St. John Macomb-Oakland Hospital, visit stjohn.org.

Sanjay Batra, M.D. Shukri David, M.D. Lingareddy Devireddy, M.D. Gary Goodman, M.D. Thomas LaLonde, M.D. James Martin, M.D. Chief of Cardiac Surgery Chief of Cardiology Chief of Cardiology Chief of Cardiac Surgery Chief of Cardiology Chief of Cardiac Surgery St. John Hospital & Medical Center Providence Hospital St. John Macomb-Oakland Hospital Providence Hospital St. John Hospital & Medical Center St. John Macomb-Oakland Hospital

A PASSION for HEALING

ST. JOHN HEALTH SYSTEM CARDIOVASCULAR CENTERS OF EXCELLENCE ST. JOHN HOSPITAL & MEDICAL CENTER s PROVIDENCE HOSPITAL s ST. JOHN MACOMB-OAKLAND HOSPITAL 20090629-NEWS--0006-NAT-CCI-CD_-- 6/26/2009 5:09 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS June 29, 2009 OPINION LETTERS Mayor should act Be reliable, even when crashing Editor: article by Sherri Begin Welch and Crain’s Detroit Business Nancy Kaffer’s June 14 article, a column by Mary Kramer in the welcomes letters to the editor. “Crash and Learn,” sparked what I June 14 issue. Both writers under- All letters will be considered for believe small businesses can and publication, provided they are line the importance of nonprofits should learn from big business: signed and do not defame re-evaluating services and encour- boldly, openly, soon Plan to practice reliability, even individuals or organizations. age those who rely on large special while crashing. Letters may be edited for length events to look for ways to signifi- he lessons of corporate turnarounds are clear: Act fast. Here’s a case in point: We provid- and clarity. cantly reduce costs. They suggest ed services to both C-4 Communica- that this is a good time for non- Write: Editor, Crain’s Detroit Identify and attack the fundamental issues that created tions, a smaller company, and Gen- profit leaders to re-create their or- Business, 1155 Gratiot Ave., T the crisis in the first place and resolve them as soon as eral Motors Corp., a larger-than-life ganizations, much like for-profit Detroit, MI 48207-2997. possible. Replace management team members who don’t fit the company, before their recent crash- corporations are doing by rein- E-mail: [email protected] new vision. For the long term, change the culture. es. Both are great companies, and venting their companies. Speed has not been the operative word in the still-young ad- both entities took the same ap- As a longtime fundraising pro- proach to plan in advance for their tive way to strengthen a compa- fessional, some of the greatest joy I ministration of Detroit Mayor Dave Bing. But as Nancy Kaffer orderly reorganizations. However, ny’s integrity and relationships. have experienced in my work has reports on Page 4, Bing’s transition team is shooting at deliver- to date, C-4 Communications has How well a business deals with been hearing people talk about the ing a blueprint late this summer — within 100 days of Bing’s not been able to settle payment for these challenges and maintains satisfaction they receive from see- May election. our services, whereas General Mo- strong supplier relationships and ing the impact of their gifts. This reliability is more important than Our advice: Speed, urgency, bold strokes and constant com- tors made it a top priority to pay happens when we engage donors suppliers prior to reorganizing, us ever for the startup business to in long-term personal relation- munication to outline the vision and direction are what De- included. In doing so, GM meticu- practice, and should be deeply ships with our institutions and troit needs. lously planned to protect one of its imbedded in its culture in order to our leaders. Special-event For a case study, simply look at what Robert Bobb has done most valuable assets, its suppliers. succeed for the long run. fundraising is not the way to ac- in less than four months as the emergency financial manager There is no doubt that large and John Forte complish this. small entities alike are faced with CEO, Forte Belanger Fundraising executives know for Detroit Public Schools. Bobb’s status as the governor’s ap- Troy the same set of unknown chal- that the majority of giving has al- pointee has its advantages. He can act independently on any- lenges and are extremely vulnera- ways been derived from individu- thing involving dollars — which is just about everything. ble in today’s economic climate. Target the individual als. More than $307 billion was giv- Mayor Bing has more complications. Crashing has become all too com- Editor: en to philanthropic causes last He must deal with Detroit’s crazy-quilt of sometimes com- mon today, and it should be Corporate sponsorships for non- peting special interests: city employee unions, City Council, viewed and approached as a posi- profit events were the focus of an See Letters, Page 7 political factions, vendors, grassroots groups and, lest they be forgotten, the businesses and residents who actually pay the taxes to make the city run. Detroit’s internal problems are well documented; Kaffer’s story includes Council member Sheila Cockrel’s comment that TALK ON THE WEB the issues remain consistent from one mayoral transition re- port to the next. From www.crainsdetroit.com In grading this new administration, we offer the worst marks Re: Using stimulus cash to limit tuition Reader responses to stories and Re: Fuel economy and automakers for its communication. Communication is inconsistent and con- How does putting money into offset- blogs that appeared on Crain’s Consumer attitudes can change fusing. Case in point: In late May, the mayor’s press office issued ting tuition cost create jobs in the Web site. Comments may be fast, and Detroit’s fixation on power a statement quoting city CFO Norm White about how M1 Rail, state of Michigan? edited for length and clarity. and size, among other things, led to the privately funded light-rail project proposed for Woodward Ron Smith the situation it is currently in. Anonymous Avenue, would seriously jeopardize the city’s own federal fund- Is that really what the taxpayers Re: Conyers snarled in bribes probe ing for transit if it broke ground this year. Since it was the may- expected those funds to be used for? The D.C. gravy train just keeps Once again, a citizenry gets the Re: Detroit pay-to-play ordinance or’s press office, Crain’s assumed it came from the mayor. government it deserves. … We de- getting longer and longer. Enacting this law is like shut- Later, a mayoral press aide told Crain’s the statement serve the mess because we tolerate Anonymous ting the barn door after the barn should have indicated it was the view of White, who had previ- the mess. burned down. There is no way to ously run the city’s bus system. So does the mayor agree? Last Anonymous force ethical behavior other than to week, M1 Rail planners and city officials, including White, told Re: Mary Kramer on nonprofits instill negative incentives for Crain’s there’s no conflict on funding and that the city sup- We … can no longer afford the luxu- Re: Keith Crain on rooting out crooks those who get caught. Timothy Dinan ports M1 Rail. Huh? ry of elaborate fundraisers, nor can I hope that Crain’s will take the we continue to compete when col- lead in pursuing the corrupt busi- This proposed law also does noth- The stakes for this mayor and his transition team are high. ness practices in municipal govern- ing to address “consulting” arrange- laborative strategies promise to be This region wants and needs Mayor Bing to succeed. ment and agencies like Detroit Eco- ments wherein a prospective con- much more sustainable, and in- As the transition team completes its work, the mayor nomic Growth Corp. I’d be tractor is required to hire the deed necessary. should be communicating directly to city residents and to the interested in seeing the details of services of a firm, operated by the Anne Osmer, region how his campaign promises will translate into long- their demolition contracts and a father of a city official, in order to Community Relations Manager, full accounting of the finances. win contracts. term change. Community Housing Network Anonymous Peter Rockwell KEITH CRAIN: Be aware, you can’t own the auto show By all indications, it looks good tend and display at a nese brands that are chance to continue the NAIAS at cess and exit and be the right size. that the bill to fund some urgently show in the U.S., not to planning to sell in the Cobo. But don’t be surprised if our A million square feet should needed refurbishments at Cobo mention Detroit. U.S. show up for an ear- show, along with many other give us the right size for any num- Center is on its way to Southeast For 20 years, after De- ly preview of their vehi- American shows, will have far ber of shows. And we just might be Michigan. troit laid the ground- cles. fewer exhibitors than previously. the envy of facilities that are larg- It will still have to get the bless- work for the show, exec- This year, interna- That’s not a reflection on our er and more costly to maintain. ing of Detroit’s government, and utives from car tional motor shows are show; it’s a reflection of the diffi- Three cheers for everyone who then it looks like there will be companies from all over taking it on the chin. So cult financial times for automo- didn’t give up on Cobo and NAIAS. some money available for some the world — Asia, Eu- are domestic shows as bile manufacturers all over the But we still have to nurture the modest expansion and repair. rope and North Ameri- well. The Tokyo Motor world. show and all the companies that Let’s just all understand that the ca — showed up and Show, which used to be We have a great chance to make are participating. But who knows? creation of the North American In- had displays at the huge, is held every two the NAIAS the catalyst for all sorts Maybe next year we’ll be seeing ternational Auto Show isn’t some- show. years, and this year no of other shows. But it’s going to re- Fiat along with Chrysler. And Tata thing you can own. You might own It never attracted car company non-Japanese brand will be ex- quire that Cobo is in top-notch con- might show up with Jaguar and the name, but the show itself is de- displays from companies that did- hibiting. The foreign makers don’t dition. It doesn’t have to be the Land Rover. There could be more pendent on the desire of car compa- n’t sell vehicles in the U.S., howev- have the money. biggest; it just has to have very companies next year. Let’s all keep nies from around the world to at- er. Lately we’ve seen some Chi- I’m excited that we’ve got a good competitive labor rates, easy ac- our fingers crossed. 20090629-NEWS--0007-NAT-CCI-CD_-- 6/26/2009 4:37 PM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Turn focus to second-stage companies Last week, one of the country’s nomic gardening” (ver- “Small businesses Web site, youreconomy.org, that gin markets and other companies biggest companies announced an sus “economic hunt- want counseling. They pulls together business data from that seem to be weathering Michi- investment in Southeast Michi- ing”): Identify “resi- need customers and all 50 states. It trains people who gan’s economic storms. gan. It was a big story and wel- dent” entrepreneurial money,” said Lange, work in economic development But when I asked where in come news. (See story, Page 1.) companies based in a who headed an entre- and nonprofits on “peer learning.” Michigan “economic gardening” is Our state is accustomed to big given community that preneurship program And, in a handful of states in- being practiced, the Lowe folks employers making big job an- seem to grow and add at a university in Ore- cluding Michigan, Lowe helps to said they had advocates in other nouncements. Only lately, those jobs quickly, then fig- gon before joining the stage annual “Companies to states, but nobody in Michigan announcements have been job ure out how to help foundation. Watch” events that celebrate fast- was really focused on second-stage cuts, not additions. them grow bigger and But the leaders of growing second-stage companies. companies. So can Michigan dig its way out faster any way you can. second-stage compa- Winning entrepreneurs are invit- Maybe it’s time to start. of our economic hole by attracting “The story is second- nies would rather learn ed to the Lowe farm, where they new companies that bring jobs stage and resident companies,” from other entrepreneurs. And to learn from peers and have the Mary Kramer is publisher of alone? foundation executive director grow faster, Lange thinks they chance to walk the trails of the Crain's Detroit Business. Catch her The Edward Lowe Foundation Mark Lange told me when I visited need the kind of highly sophisti- Lowe property and maybe find take on business news at 6:50 a.m. in southwestern Michigan doesn’t the 2,600-acre Lowe Foundation cated market research many small new answers to nagging problems. Mondays on the Paul W. Smith show think so. farm. Second stage is defined as 10- companies can’t afford. This year’s “class” included life- on WJR AM 760 and in her blog at It subscribes to a theory of eco- 99 employees and $1 million to $50 To support its theories, the sciences companies, auto suppli- www.crainsdetroit.com/kramer. nomic development called “eco- million in revenue. Lowe Foundation created a free ers who had found new, high-mar- E-mail her at [email protected].

LETTERS CONTINUED ■ From Page 6 year. Nearly $252 billion, or 82 per- cent, came from individuals. Cor- porate giving was $14.5 billion, only 5 percent of total giving. While this is not new information, many organizations continue to conduct special events as their pri- mary source of philanthropic rev- NEED TO enue. Nonprofits, both large and small, need to move beyond special RAISE CAPITAL? events and re-align their invest- ment in fundraising programs that seek major gifts from individuals. Major gifts fundraising will pro- vide as much as 75 to 80 percent of fundraising revenues for an orga- WE CAN OFFER A nization with an ROI of as much as 400 percent or more, whereas, most special events produce an WEALTH OF IDEAS. ROI of 100 percent or less. Conducting an effective major gifts program requires discipline and a systems approach to fundrais- ing to identify, engage, solicit and steward major donors. It requires that fundraisers set goals for each prospective donor and assign vol- unteer and staff advocates to ensure PNC Corporate & Institutional Banking. that appropriate actions are taken to “move” the prospective donor to- A leading provider to the middle market. ward making a major gift. Organizations must make a commitment to integrate giving Today’s uncertain economy has made it difficult for middle market companies to obtain with specific program needs. Ma- jor gifts donors want to make an the capital needed to grow. But with PNC on their side, our clients gain the fi nancial impact on an organization, their resources of one of America’s best banks. In fact, PNC is the #1 syndicator of middle programs, and their clients. Be- cause securing major gifts can market loans in the United States.* We understand that every situation is different, and take time, many organizations we use that knowledge to find the smartest, most relevant solutions. So whether you place the development of major gift programs on the back burner. want to establish or expand a revolving line of credit, or refinance long-term debt, we can This is a short-sighted approach to fundraising that is analogous to help. Or if you’re looking to unlock the value of assets through leasing or asset-based the automotive companies’ slow lending, we can help there too. With a strong balance sheet and plenty of fresh ideas, movement toward retooling to pro- duce more energy-efficient cars. we’re helping our clients raise capital every day. How can we help you? We’re ready to get By focusing on major gifts, in two started. To learn more, visit pnc.com. to three years, nonprofits can be- gin realizing great results with a phenomenal ROI. In this challenging economy, nonprofits should re-evaluate their fundraising programs to fo- cus on major gift fundraising, since this produces the biggest re- wards. All other programs should be viewed as a means of getting to major gifts. By pursuing a system- atic and disciplined approach to major gifts, nonprofits will benefit their own organizations and the *PNC was named by Loan Pricing Corp. as the #1 syndicator of middle market loan transactions in the United States for 2008. PNC is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”). Lending products and services and FDIC-insured bank deposit products are provided by PNC Bank, National Association, larger community as well. PNC Bank, Delaware and National City Bank, which are subsidiaries of PNC and Members FDIC. Equipment financing and leasing products are provided by PNC Equipment Giuseppe Rizza Finance, LLC, a wholly owned subsidiary of PNC Bank, National Association, and by National City Commercial Capital Company, LLC, a subsidiary of National City Bank. Vice President, Campaigns Services such as the syndication of loans, public finance advisory services and securities underwriting, sales and trading are provided by PNC through its subsidiaries, Beaumont Foundation PNC Capital Markets LLC, and NatCity Investments Inc., registered broker-dealers and members of FINRA and SIPC. Lending and leasing products and services, as well as certain other banking products and services, require credit approval. ©2009 The PNC Financial Services Group, Inc. All rights reserved. Royal Oak DBpageAD.qxd 6/24/2009 3:56 PM Page 1

Pure performance Absolute precision

Chrono-Matic A tribute to the first ever selfwinding chronograph (1969), bearing the Breitling WWW.BREITLING.COM signature. Officially chronometer-certified by the COSC. 20090629-NEWS--0009-NAT-CCI-CD_-- 6/26/2009 11:09 AM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 9

REPORTER’S NOTEBOOK TOP AMERICAN DEFENSE CONTRACTORS The five largest U.S.-based defense contractors, in 2008 revenue: Chad Halcom covers law, 1. Boeing Co.: $60.9 billion manufacturing 2. United Technologies: $58.7 billion and defense. Call 3. Lockheed Martin: $42.7 billion (313) 446-6796 4. Northrop Grumman: $33.9 billion or write chalcom 5. General Dynamics: $29.3 billion @crain.com. Sources: Frost & Sullivan, Thomson Reuters defense industry Chad Halcom Vehicle contract spreads benefits The rising contract value of the all- terrain Mine Resistant Ambush Protected All-Terrain Vehicle, or M- Wooing defense work ATV, should buoy several local companies — regardless of who steers. The Pentagon’s Joint Requirement More suitors heat up market; contractors leery Oversight Council revealed earlier this BY CHAD HALCOM let their defense components drop by the month that the M-ATV program would CRAIN’S DETROIT BUSINESS wayside,” said John Bedz, defense-automo- call for 5,244 vehicles in the tive consultant for Troy-based Automation Al- production award. That’s up from the We tell ompetition for defense contracts is ley. “ estimated 2,080 vehicles given to growing faster than the market itself, contractors late last year and likely “There’s some understandable leeriness businesses they C but local experts among defense contractors about picking raises the contract value from nearly say serious suitors $3 billion to well above $5 billion. GETTING STARTED up these companies. That’s why we tell need to look at the have a leg up on businesses they need to look at the indus- The production phase is expected to those plugging a rev- The basics: How to industry for the begin this week on the M-ATV, an off- try for the long term.” enue hole left by the get into defense The Office of Small Business Programs at road vehicle variant of the economic downturn. contracting, Page 10 long term. conventional MRAPs that were heavily the U.S. Army Tacom Life Cycle Management Breaking into the deployed in Iraq and wrapped up Command in Warren has received 800 ” market is much like starting a relationship production last year. The M-ATV is queries from companies about small-busi- John Bedz, Automation Alley lighter and better suited to the rugged — the best advice is to be flexible, and don’t ness opportunities at Tacom over the first nies who are looking at government work off-road terrain of Afghanistan than fear long-term commitment. eight months of fiscal 2009 that began Oct. 1, for the very first time, be they in automo- conventional MRAPs. “When times are tough, engineering com- compared with 970 for all of fiscal 2008 and tive or anywhere,” said John Madden, asso- panies or automotive suppliers tend to turn 761 in fiscal 2007. Well-positioned on M-ATV work is ciate director of the small-business office. Troy-based ., a to defense as a measure to offset “There has been a large increase in calls ArvinMeritor Inc But available contract dollars are flat or supplier on four of the project’s five losses. But as soon as their old con- we’re getting from compa- falling. Last year, small businesses won competing bidders. Chris Kete, vice tracts pick up again, they tend to president of specialty products at about $3 billion of Tacom’s total $30 billion ArvinMeritor, said much of the in contracts. Madden’s office expects to see engineering and development work on about the same percentage of $28 billion or M-ATV is done in Michigan, but so in contracts this year. assembly work is expected to be done The trend is not unique to Tacom. Busi- in North Carolina. ness use of the Macomb Regional Procure- “There’s also a supply base out there ment Technical Assistance Center in Warren for our portion of the work, and a great is accelerating. The center deal if not a majority of that work would had 106 new firms enroll in be done in Michigan,” he said. training programs to pur- ArvinMeritor supplies suspension, sue contract work during braking or other systems to bidders the first quarter, up from Force Dynamics Inc., the joint venture 75 in fourth-quarter 2008. of Sterling Heights-based General Statewide, the program’s Dynamics Land Systems and Ladson, 11 PTAC offices saw new S.C.-based Force Protection Inc.; BAE Systems’ U.S. Combat Systems division See Defense, Page 10 in Sterling Heights and Santa Clara, Calif.; BAE’s Global Tactical Systems BAE Systems’ U.S. Combat Systems division in Sealy, Texas; and Illinois- division in Sterling Heights built and based Navistar International Corp. tested this prototype of the M-ATV, All four companies and Wisconsin- designed with the dangers and rugged based Oshkosh Corp. won preliminary terrain of Afghanistan in mind. contracts in April to submit prototypes COURTESY OF BAE SYSTEMS for testing on the M-ATV, sometimes called “MRAP light,” awarded through MAJOR SYSTEMS U.S. Army Tacom Life Cycle Management Command in Warren. Here are some of the production contracts under development as “major systems” in the U.S. Army Tacom Life Cycle Management Command’s Procurement Network in Warren. Some projects are awaiting bids from prime defense contractors, while others have competing bids or even awards Also supplying multiple bidders is but may need suppliers or subcontractors as contracts are managed or carried out: Demmer Corp., Lansing, which has done capsule fabrication work for M-ATV Family of Medium Tactical Vehicles Bridge Erection Boat M1061A1 Trailer Force Dynamics and BAE U.S. Combat Ⅲ Solicitation: Dec. 8, 2008 Ⅲ Solicitation: Feb. 27 Ⅲ Solicitation: June 9 Ⅲ Solicitation: May 12 Systems. Ⅲ Branches: Army and Ⅲ Branch: Army Ⅲ Branch: Army Ⅲ Branch: Army “If we win the production award, we Marine Corps expect much of the work to be in Ⅲ Product: Competitive rebidding on 12 truck Ⅲ Product: Helps to assemble and Ⅲ Product: Five-ton, four- Ⅲ Product: Mine Resistant systems and two models of truck trailers, to maneuver floating rafts and wheel flatbed trailer that Michigan, in terms of final systems Ambush Protected All-Terrain follow on a past production contract awarded bridges, and provides temporary attaches to other wheeled integration, because of the capsule Vehicle (shown above). to BAE Systems. anchorage. ground vehicles and location work already being done in Ⅲ Initial awards for typically carries mounted Michigan,” said BAE media relations Status: Ⅲ Status: Proposals were due May 27; bid Ⅲ Status: Proposals due July 24. prototype development and award expected by end of July. The timeline is Two bid awards expected later in the weapons or small vehicles. manager Steve Field. testing went to five bidders subject to change. At least two bidders, BAE year for a research and development Ⅲ Status: Proposals Other local BAE suppliers on M-ATV April 30. Production award and Oshkosh Corp., are competing. period up to 22 months. Production requested in May, due included R. Cushman & Associates expected by this week. Ⅲ Quantity: 12,400 vehicles, 10,900 trailers. phase will follow. Oct. 1. Inc., Livonia, for the transmission and Ⅲ Quantity: Minimum 372, Ⅲ Duration: Starting late 2010 through Ⅲ Quantity: 444 units projected. Ⅲ Quantity: 125 to 645 Lanzen Fabricating Inc., Roseville, on maximum 10,000. Likely 2014. BAE Systems received a “bridge” Ⅲ Duration: Six-year production. trailers. body components. Local suppliers to target volume 5,000. contract for interim production and delivery Ⅲ Estimated value: Two contracts Ⅲ Duration: Five-year the GDLS joint-venture included Bolton Ⅲ Duration: Urgent-needs through next year, until competitive rebuy for production. Conductive Systems L.L.C., Walled worth up to $4 million for R&D timetable; full production of a new generation of vehicles can be phase. Total production-phase Ⅲ Estimated value: Lake, for wire harnesses; and Sabre- units to be complete and completed. contract could be more than $1.5 million to ., Chesterfield Township, and Tec Inc deployed by year’s end. Ⅲ Estimated value: Likely $3 billion- $110 million, based on unit costs $6.5 million, based on W Industries Inc., Detroit, both for Ⅲ Estimated value: More $4.5 billion, based on volume and value of of past similar military contract unit prices in past military metal components. than $5 billion. current $3.7 billion bridge contract. awards. contracts. 20090629-NEWS--0010-NAT-CCI-CD_-- 6/26/2009 11:23 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS June 29, 2009 Focus: Defense Industry

Basic training for contractors contractor registration. The PTACs also guide potential Defense: Newcomers heat up market Procurement Technical Assis- contractors through building a tance Centers, or PTACs, are good business record in the federal On- ■ From Page 9 first stops for small and midsize line Representations and Certifica- companies increase from 453 to Madden notes that there are get to the production phase the sup- businesses looking to break into tions application process, required 724. opportunities for small business- pliers are already locked in,” he the defense industry, said Beth for soliciting the federal govern- Meanwhile, contracts awarded es to supply one of Tacom’s “ma- said. Cryderman-Moss, director of the ment, and a bid-match service that to companies using PTAC centers jor systems” projects that tend to New opportunities may be afoot. Macomb Regional PTAC, and John send e-mails or other notices of de- hit $269 million for the six months get awarded to large contractors. On July 27, the U.S. Army Tank-Au- Madden, associate director of the fense contracts that fit a particular ended March 31 compared with The all-terrain version of the tomotive Research Development and small-business office at the U.S. company’s skill sets. $378.9 million in the same period Mine Resistant Ambush Protect- Engineering Center in Warren is ex- Army Tacom Life Cycle Management Madden also recommended the in 2008, but still ahead of $117 mil- ed vehicle contract, which should pected to release research topics Command in Warren. Michigan chapter of the National lion in the same period in 2007. be in the production phase by that will be eligible for the federal The centers offer training on Defense Industrial Association for Co-funded by the federal De- July 1, is an example. Small Business Innovation Research how to get started, including how networking for companies to meet fense Logistics Agency and the But Madden advises getting in- program, which accounts for more to obtain a Commercial and Gov- the larger prime defense contrac- Michigan Economic Development volved early. than $1.2 billion in defense funding ernment Entity code through the tors, which look for suppliers and Corp., PTAC centers help connect “It’s better to get involved and for small businesses nationwide. Defense Logistics Information Ser- account for much of the local businesses with government ac- inquire sooner, when those pro- It’s the first Department of Defense vice in Battle Creek, and help with NDIA’s board of directors. quisition and procurement pro- jects are under development,” he quarterly solicitation this year in the Department of Defense central — Chad Halcom grams and defense contractors. said. “By the time those contracts which TARDEC will participate, but the topics have been under de- velopment since last year, Bedz said. Research in defense is less policy- prone than it is for other federal agencies, but Bedz has seen a greater focus on researching “incre- mental improvement” to ground ve- hicle fuel efficiency — particularly Who in the world since the JP8 diesel fuel blend that most military vehicles use is much costlier than it was three years ago, is Baker Tilly? and “up-armoring” vehicles to re- sist improvised explosive devices and other enemy assaults in Iraq has added thousands of pounds to their weight. For over 75 years, you’ve known us as Virchow Krause, one of the “For the government the … im- portant priority is survivability country’s strongest accounting and advisory firms. Now, we’re and protection (of soldiers), with energy as a secondary concern,” he changing our name to Baker Tilly, cementing our commitment said. “But then, it isn’t safe to keep having to run a fuel truck alongside to Baker Tilly International—the world’s 8th largest network of a military convoy either.” Competition is stiff. Michigan accounting firms, with a presence in more than 110 countries— ranked 16th among states in fiscal 2008, with 34 defense grants award- ? further enhancing our ability to help clients around the globe. ed to business for Phase I SBIR re- search, out of 337 business propos- als. That’s compared with 56 research awards out of 342 propos- We’ve always taken great pride in the ways we connect with als in fiscal 2007, to rank 11th. Local businesses are trying, how- and deliver for our clients. This will never change. At Virchow ever, to improve their success rate. Lisa Kurek, managing partner at Krause, and now at Baker Tilly, we understand what clients Biotechnology Business Consultants Services L.L.C., Ann Arbor, estimates need in order to do business in this changing world. that attendance has nearly tripled— from six to 12 partici- pants to 20-30 — in two years for the assistance programs her compa- So, where can we take you? ny offers to help companies apply for SBIR or Small Business Tech- nology Transfer (STTR ) grants. The DoD is the largest compo- nent of the 11 federal agencies par- ticipating in the SBIR program, Kurek said, accounting for $1.2 bil- lion of its $2.5 billion total funding. So changes to SBIR and STTR in Congress, she said, will likely have the greatest impact on the defense industry. The company claims an award rate of 40 percent or better for its participants, versus a national av- erage of 10 to 20 percent. But like Bedz, she said defense work calls for commitment — com- panies can expect a six- to nine- month turnaround from the time a company begins exploring grant opportunities or receives a re- search topic before an award. Beth Cryderman-Moss, director of the Macomb Regional PTAC, said nine months to a year is a common turnaround time for companies seeking a return on registering as defense contractors or becoming

© 2009 Baker Tilly Virchow Krause, LLP Connect with us: bakertilly.com part of a defense supply chain. Chad Halcom: (313) 446-6796, [email protected] DBpageAD.qxd 6/22/2009 9:45 AM Page 1

GET UP TO 6 MONTHS OF 'PS
B
MJNJUFE
UJNF
ZPV
DBO
HFU
VQ
UP

NPOUIT
PG
#VTJOFTT
$MBTT
*OUFSOFU
GPS
GSFF
XIFO
ZPV
PSEFS
#VTJOFTT
$MBTT
7PJDF
XJUI
B
BUSINESS CLASS INTERNET ZFBS
BHSFFNFOU
*UT
QIPOF
TFSWJDF
XJUI
BEWBODFE
CVTJOFTT
GFBUVSFT
BOE
TVQFSGBTU
*OUFSOFU
UISPXO
JO
GPS
GSFF
*UT
OPU
TNBMM
CVTJOFTT
JUT
GBTU
CVTJOFTT

t
'BTUFS
UIBO
5
BOE
%4-
t
*ODMVEFT
.JDSPTPGU®
0VUMPPL
FNBJM
BOE
4IBSF1PJOU FREE t

'VMMZ
GFBUVSFE
QIPOF
TFSWJDF
UIBUT
SBUFE

JO
DBMM
DMBSJUZ t
EBZ
TBUJTGBDUJPO
HVBSBOUFF

800-391-3000 | business.comcast.com/freeinternet

Offer ends September 7, 2009. Restrictions apply. New Business Class customers only. Early termination fees apply. Free 6 months of Internet service depends on number of Voice lines. Must have one full-featured Voice line. Equipment, installation, taxes and the Regulatory Recovery Fee or other applicable charges (e.g., international calling or per-call charges) extra. Call clarity claim based upon independent study performed by Keynote dated November 2008, Wave 6 study. Call for restrictions and complete details. Comcast © 2009. All rights reserved. DBpageAD.qxd 6/19/2009 4:12 PM Page 1 20090629-NEWS--0013-NAT-CCI-CD_-- 6/26/2009 11:10 AM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 13 Credit crunch forces CDCs to scale back, rethink

BY NANCY KAFFER cy in Southwest’s multifamily cant land reuse, community orga- borhoods — and what role CDCs to make these decisions before CRAIN’S DETROIT BUSINESS buildings was 78 percent — a drop nizing and jobs and economic de- will play in that shift. they are made for us.” he attributes to falling suburban velopment. “How do we find areas that are The group expects to have a Community development corpo- rental rates. Now it’s up to 92 per- The task force will examine less dense and move people fairly strategy by year’s end. rations pour millions of dollars cent. strategies to shrink the city to cre- and humanely to areas that are Nancy Kaffer: (313) 446-0412, into Detroit’s neighborhoods and Warren/Conner Development Corp. ate new density in viable neigh- more dense?” she said. “We need [email protected] commercial districts each year. President Maggie DeSantis is reti- And as the credit market has cent to say how much of her orga- frozen, these non- nization’s com- profit entities mercial real have been left sit- We’re holding estate is languish- ting on properties “ ing on the mar- they can’t move. lots of ket, noting that Now, CDC lead- Warren/Con- ers say they’re in property ner’s total in- the midst of a sea ventory of change in how we can’t owned or man- neighborhood de- aged property is velopment hap- move. ... 245,000 square pens in Detroit. feet. The guiding A lot. “We’re hold- principle of ” ing lots of prop- neighborhood sta- Maggie DeSantis, erty we can’t bilization at the Warren/Conner Development Corp. move. ... A lot,” core of many com- she said. munity development corporations’ Cash flow has tightened at War- work has been simple: Demolish ren/Conner, she said. blighted structures and use state A recent sale was made with the or federal tax credits to assist in benefit of incentives from Wayne new construction. County and Detroit LISC, which K?<FECP>8D<@EKFNE6 Then, attract responsible home- funds CDCs, she said. But without buyers or commercial tenants. such benefits, sales just aren’t hap- Boost property values until pening. EFK8EPDFI<% growth in the market gains mo- The lack of financing cuts both mentum and for-profit developers ways: Warren/Conner’s develop- begin constructing market-rate ment work has slowed or stalled. housing and commercial develop- “We can access grants, which ments. makes it a little easier,” DeSantis That’s the recipe the Bagley Hous- said. “But you can’t grant-fund a ing Authority followed for more than whole shopping center.” 10 years. CDC funding is generally pegged Since 1995, the community de- to specific projects, Loacano said. velopment corporation had demol- “There are two things a CDC ished blighted structures in its needs: projects and operating sup- CXk\cp#Y`^X`ic`e\j_Xm\Y\\eXjb`e^d\kf[fXcfk]fik_\d% =`ijkk_\pnXekd\kfjkXik one-square-mile service area in port,” he said. fm\iYpZfdgc\k`e^Xe\nZi\[`kZXi[Xggc`ZXk`fe]fiXZXi[k_Xk@ZXelj\Xkc\jjk_Xe_Xc]Xj Southwest Detroit, building 83 It’s a catch-22. Taking on more dXepgcXZ\jnfic[n`[\Xj@ZXelj\dpM`jXž ZXi[%8e[k_\d`c\j @\Xie6@ËdclZbp`]@ZXelj\ new single-family homes and re- projects means the CDC could be habbing 12 town homes. k_\d]fiÕ`^_kj@nXek#Xe[X`ic`e\jZXeZ_Xi^\lgkf(,']fiÈ]i\\Ék`Zb\kj`]@Yffbk_\dkff burdened with unsellable proper- The average neighborhood cXk\%@Ëdk`i\[f][`jZfm\i`e^dpi\nXi[j_Xm\Y\Zfd\dfi\[`]ÔZlckkflj\ÇX^X`e% ties. But without operating sup- home price — $8,000 in 1997 — sky- port, the organization may cease to JD rocketed. Bagley’s new homes N`k_k_\=c\oG\ibj KiXm\cI\nXi[jM`jXJ`^eXkli\ž ZXi[#@ZXealjkXZk`mXk\k_\ZXi[@i\Z\`m\`e function. were selling for roughly $116,000, Grandmont Rosedale Development k_\dX`cXe[lj\`k\m\ipn_\i\@lj\[dpNfic[G\ibjžM`jXZXi[% DpXlkfdXk`ZgXpd\ekjZfek`el\ condos for $89,000. Most sold while JD Corp. built three new houses last n`k_flk`ek\iilgk`fe#Xe[@\Xie[flYc\=c\oGf`ekj fe^Xj#^ifZ\i`\jfiX`ic`e\gliZ_Xj\jÇ still under construction. year, said Executive Director Tom Then, in 2007, the housing mar- n_`Z_\m\i@jg\e[k_\dfjkfe\XZ_dfek_%N_\e@i\[\\ddp=c\oGf`ekj#@_Xm\dpZ_f`Z\f] ( ket started to crash. And the Goddeeris. dfi\k_Xe(,'X`ic`e\j#n`k_ifle[$ki`gk`Zb\kjjkXik`e^Xkaljk)'#'''=c\oGf`ekj% K_\i\Xi\ef phones at Bagley stopped ringing. “We did sell one of the three last YcXZbflk[Xk\j#ZXgXZ`kpZfekifcjfii\[\dgk`fe]\\j%@Xcjf^\klgkfX)'X`ic`e\XccfnXeZ\ “People stopped walking August and have had a lot of inter- est in the other two, but we’re hav- @ZXelj\]fiXnXi[kiXm\c\og\ej\jc`b\YX^^X^\]\\jfiXe`e$Õ`^_kd\Xc#Xe[@ZXe\m\e\Xie through our doors,” said then-di- ]i\hl\ekÕp\id`c\j]fidpXnXi[Õ`^_k%Gclj#k_\ rector Daniel Loacano. ing a difficult time finding people As the mortgage market dried who can obtain mortgages to buy i\nXi[ Z_f`Z\j ^f Y\pfe[ kiXm\c kf fgk`fej c`b\ up, Bagley was left with six homes the homes,” he said. d\iZ_Xe[`j\# Z\ik`ÔZXk\j ]fi _fk\c jkXpj Xe[ ZXi it couldn’t sell, and Loacano Goddeeris said Grandmont i\ekXcj#\m\eZXj_YXZb% watched as Bagley’s operating dropped the new home prices from budget withered. About two-thirds $110,000 to $84,000 and started of- @] pflËi\ X Zlii\ek Nfic[G\ibj M`jX ZXi[d\dY\i# of its $600,000 annual budget had fering hefty down payment pur- chase assistance. k_\i\Ëjefe\\[kf Xggcp%AljkXZk`mXk\pfli=c\oG\ibj come from property sales. M`jXZXi[n_\e`kXii`m\jXe[pflËi\fepflinXpkf Earlier this year, Bagley Hous- “We’re hoping this is too good a ing closed its doors, merging some deal to pass up, but we still need to e\nkiXm\ci\nXi[j%@]pflËi\efkXNfic[G\ibjM`jX functions with the larger, better- find that qualified buyer,” he said. ZXi[d\dY\i#m`j`kÕ\og\ibj%ZfdkfXggcpfec`e\% funded CDC Southwest Solutions — Last week, Goddeeris said, a itself experiencing market-related prospective buyer signed an agree- troubles. ment to buy one of the homes. It’s hard to track exactly how Bagley recently found buyers many development dollars flow for three of the homes at discount- >\kfeYfXi[Xk ]c\og\ibj%Zfd% through the city’s dozens of CDCs ed prices, Loacano said. each year. Originally priced at $112,000 to Detroit’s Local Initiatives Support $116,000, the houses now sell for Corp., the local arm of a national about $80,000. Rehabilitated con- umbrella organization that funds dos sold for $89,000 two years ago CDCs and nonprofits, has invested — they’re $45,000 to $50,000 today. $135 million in neighborhood revi- Community Development Advo- talization and has leveraged $888 cates of Detroit, the trade associa- million in Detroit since 1990, in- tion for CDCs, has assembled a vesting $30 million in 2008 alone. task force to develop recommenda- Tim Thorland, Southwest’s ex- tions for the future of the city’s ecutive director, said he’s seeing CDCs and neighborhoods, said De- ( some rebound in occupancy rates Santis, a member of the task force. )'#'''=c\oGf`ekjhlXc`Ô\j]filgkfX+''k`Zb\kmXcl\% at the apartment buildings his or- The task force has narrowed in K_\Nfic[G\ibjM`jXZXi[Xe[k_\L%J%9Xeb=c\oG\ibjKiXm\cI\nXi[jM`jXJ`^eXkli\ZXi[Xi\`jjl\[YpL%J%9XebEXk`feXc8jjfZ`Xk`feE;% K_\=c\oG\ibjM`jXgif^iXd`jefkX]Ôc`Xk\[n`k_#jgfejfi\[fi\e[fij\[YpEfik_n\jk8`ic`e\j#ž;\ckX8`iC`e\jfik_\Nfic[G\ibjgif^iXd% ganization owns. on three strategies for community At the start of the year, occupan- development, DeSantis said: va- 20090629-NEWS--0014-NAT-CCI-CD_-- 6/26/2009 11:11 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS June 29, 2009

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

Help for Specs Howard to hold film-training workshops BY BILL SHEA film, video and television produc- vanced editing workshop on Fi- of film industry tenants. Work- CRAIN’S DETROIT BUSINESS tion facilities. nal Cut Pro software starting July shop students will have access to job seekers Such workshops have been 13. The classes are limited to 20 the wide range of equipment Two of metro Detroit’s estab- springing up locally in the wake students and range in price from available at the site. areerWorks is a weekly lished entertainment industry en- of Michigan last year establishing about $2,500 to $4,000. “The opportunity to train them collection of advertis- tities are working together to help some of the nation’s deepest film “With all the industry coming for a new industry is a boon and it fill the demand for trained per- C ing, news and informa- production incentives, which into Michigan, they’re going to is a valuable and necessary ele- sonnel in the burgeoning Michi- tion geared toward readers in have attracted a slew of movie need crew,” said Lisa Zahodne, ment of having these people come gan film industry. projects. president and COO at Specs in from out of state,” said Grace & career transition or looking Southfield-based Specs Howard The broadcast school and pro- Howard. The school has hired 10 Wild founder Steven Grace. for new jobs. School of Broadcast Arts is leasing duction house have been around new adjunct faculty to run the For more information, go to Included in our coverage: space for new film and editing for decades, and the new work- workshops. www.specshoward.edu and click “CareerTransition,” high- workshops from Farmington shops are accredited by the state. The workshops will be at the on Workshops or call (866) 61- lighting a person who has Hills-based Grace & Wild Inc., There will be an eight-week six-acre Studio Center production SPECS. made a successful leap from which has the state’s lone film film production workshop start- lot, which includes Grace & Wild Bill Shea: (313) 446-1626, one profession to another; a processing lab and significant ing July 21 and a seven-week ad- and its subsidiary and a number [email protected] calendar of job- and training- related events; and news sto- ries affecting the job market. CareerWorks is also online. Expo will offer look at film industry opportunities On our Web site, at CareerTransition www.crainsdetroit.com/ CBS Radio Detroit presents the production, indie films, script careerworks, you can post an “Michigan Makes Movies Expo” writing and becoming a crew 10 a.m. to 6 p.m. July 12 at the member. Hear from casting direc- Name: Greg Ohl, 47. anonymous résumé and at- Education: A bachelor’s degree from Lehigh tract employers. You can Rock Financial Showplace. tors, receive acting lessons from The event will include a por- Hollywood character actor David University, master’s and doctoral degrees in me- scan the newest jobs from our tion in which attendees can meet Dean Bottrell and more. chanical engineering from the University of area or all of Michigan. You and receive information from a For more information, includ- Michigan. can set up e-mail alerts so variety of professionals and com- ing a list of speakers, and to buy Past career: More than 25 years as an automo- whenever a job that interests panies involved in Michigan’s advance tickets at $20 each, go to tive engineer for Chrysler L.L.C. He spent 12 you is posted, you’ll know film industry. www.michiganmakesmovies.com years as manager of the engine controls devel- about it. There will be more than 30 ses- (ages 16 and older). Tickets also opment group. Employers can post jobs or sions throughout the day that will will be available for $25 at the New career: Leading the development of elec- tronic controls and software at Ann Arbor- search résumés for talent include topics such as “How do I door. Parking is $5 per vehicle. based Adaptive Materials Inc., which designs they seek. become an extra?” and “How do I Sponsored by Lawrence Techno- get my child into films?” as well logical University and the Center for Greg Ohl propane-powered fuel cells that can provide as cinematography, TV and film Film Studies. Former career: portable electric power for military applica- Automotive tions, such as unmanned ground vehicles, as engineer well as for leisure or emergency power applica- New career: tions. Leading the Why he decided to change careers: “My interest development of in the alternative-energy space, and fuel cells CAREER MOVES electronic controls in particular, dates back to my time as a gradu- and software ate student. Michigan’s strong commitment to REAL ESTATE POSITIONS SOUGHT the growth of this industry played an impor- tant part in my decision. Finally, Chrysler’s U. S. CENSUS BUREAU voluntary termination incentive program offer NEEDS EXPERIENCED MANAGERS! in November 2008 provided the last little push I needed to go for it.” FULL TIME TEMPORARY POSITIONS How he made the transition: “Virtually all of METRO DETROIT LOCAL CENSUS OFFICES my work experience has been with a large cor- ANNUAL SALARY $38,000 - $59,400 poration. I knew that I needed help in making VIEW POSTINGS AT www.census.gov/detroit the transition to the small-business communi- NOW HIRING COMMERCIAL REAL ESTATE PROFESSIONALS CALL 1 866 861-2010 ty, where I was most likely to find growing al- TO SCHEDULE TEST ternative-energy companies. I enrolled in a Friedman Real Estate Group, Inc. is looking for experienced real estate The U.S. Census Bureau is an Equal Opportunity Employer program called Shifting Gears, developed for brokerage professionals to join our team in Farmington Hills, Michigan. Ann Arbor Spark. That program helped me un- derstand the kind of company I wanted to work Now in our 22nd year, we have earned a reputation for being aggressive, for, it helped me understand the small-busi- driven, and creative in our approach to handling the real estate needs Call Us For Personalized ness owner’s perspective much better, and it of our clients. We’ve worked hard to position our company for success during these economic times, and we are meeting the challenge head on. Service: (313) 446-6068 provided the networking opportunities that ul- Deep integration with our property management and construction divisions timately led to my position at Adaptive Materi- allows us to provide outstanding service to our growing list of clients. CLOSING TIMES: Monday 3 p.m., als.” one week prior to publication date. Obstacles overcome: “Being willing to stick Our business is becoming ever more complex and we are looking for Please call us for holiday closing times. with my plan. Turning down other opportuni- sharp, professional individuals to join our team. Candidates must have ties in the current economic climate was very a four (4) year college degree, must have an active Michigan real estate FAX: (313) 446-1757 difficult, but I wanted to stay in Michigan and I salesperson or associate broker’s license, and must possess at least three E-MAIL: [email protected] wanted to work in the alternative-energy (3) years of commercial real estate experience. INTERNET: space, so I waited until the right opportunity www.crainsdetroit.com/section/classifieds developed. I’m very glad I did, as I’m now Please Submit Resume with subject line of working for Adaptive Materials, the premier “CRE Broker” to [email protected] Confidential Reply Boxes Available fuel cell company in the world. … In the end, Friedman Real Estate Group Inc. is an Equal Opportunity Employer things worked out really well.” PAYMENT: All classified ads must be www.friedmanrealestate.com Advice for others: “Figure out your passion, prepaid. Checks, money order or make a plan to get there, execute your plan and Crain’s credit approval accepted. stick with it.” CRAIN’S CAREER MOVES WORKS! Credit cards accepted. If you have made a similar change in your ca- reer, or know someone who has made an inter- To Place Your Ad Call See esting career transition, contact Andy Chapelle, Crainsdetroit.com/Section/Classifieds managing editor at Crain’s Detroit Business at (313) 446-6068 or Fax (313) 446-1757 for more classified advertisements [email protected]. 20090629-NEWS--0015-NAT-CCI-CD_-- 6/26/2009 11:13 AM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 15

PEOPLE FINANCE Kim Thompson to Gary Wolfson to and COO, Easy Online Solutions Ltd., executive direc- executive vice Farmington Hills, from managing Barb Cristea to di- N THE SPOTLIGHT I president and member, Corey D. Silverstein rector, finance tor, Glacier Hills Yoshiki “Steve” chief creative offi- P.L.L.C., Bingham Farms. and operations, Care and Rehabil- cer, SMZ Advertis- Agency Business Sekiguchi, 55, itation Center, Steven Price to principal, P.M. Environ- ing, Troy, from Solutions L.L.C., has been Ann Arbor, from mental Inc., Berkley, from due dili- executive vice Farmington Hills, appointed nursing home ad- gence manager. president and cre- from financial au- president and ministrator, Oke- ative director, Jim Bitterle to managing partner, Edu- dit manager, CEO of mos Health and W.B. Doner and cational Data Services Inc., Dearborn, Amerisure Insur- automotive Rehabilitation Co., Southfield. from general manager, Gibson Guitar ance, Farmington supplier Denso Center, Okemos. Corp., Nashville. Hills. International Thompson Wolfson NONPROFIT James Bess to America in LAW David Fike, president, Marygrove Col- Cristea president and Southfield. CEO, Oxford Bank Corp., Oxford, from Mark Kopson, lege, Detroit, to board of directors, Sekiguchi PEOPLE GUIDELINES president and CEO, North Country Sekiguchi will partner, Plunkett Michigan Nonprofit Association, Lans- Bank and Trust, Manistique. remain a managing director of Cooney P.C., ing. Also, Jennifer Goulet, president, Announcements are limited to Kariya, Japan-based Denso Corp. reappointed to ArtServe Michigan Inc., Wixom, and management positions. Nonprofit HEALTH CARE and replaces Haruya “Harry” vice-chair of pay- Bill Liebold, president, The Liebold and industry group board ors, plans and Group L.L.C., Royal Oak, to the board appointments can be found at Jerome Espy to Maruyama, who will return to of directors. Japan to head the global sales and managed care www.crainsdetroit.com. Send press secretary, practice group, Detroit Medical business development submissions to Departments, American Health RETAIL Crain’s Detroit Business, 1155 Center, Detroit, department, the Toyota sales Lawyers Associa- from vice presi- Arthur Keeney to senior vice presi- Gratiot Ave., Detroit, MI 48207- department, the Chubu sales tion, Washington, dent, , Ann Arbor, dent of communi- Borders Group Inc. 2997, or send e-mail to department and the Hiroshima D.C. from vice president, Harold Friedman cations, Comcast Kopson [email protected]. branch office. Inc., Butler, Pa. Corp. Releases must contain the person’s Sekiguchi also will serve as MARKETING Diane Charles to director of corpo- Deborah Leblanc name, new title, company, city in chairman of the board of directors rate communications, Art Van Furni- to vice president Chris Day to senior vice president, which the person will work, former ture Inc., Warren, from program di- of patient care ser- for the North American Denso Campbell-Ewald Co., Warren, from title, former company (if not Group. rector and local program manager, Espy vices, Detroit Re- vice president, On The Edge Promo- promoted from within) and former ceiving Hospital He earned a bachelor’s degree in tions, San Antonio. Also, Whitney WXYZ-TV, Detroit. city in which the person worked. and University Health Center, Detroit, Drake to senior vice president from Photos are welcome, but we cannot law from Gakushuin University in SERVICES from chief nursing officer, Ingham Re- Tokyo. external relations manager, Procter & guarantee they will be used. gional Medical Center, Lansing. Gamble, Cincinnati. Corey Silverstein to general counsel 20090629-NEWS--0016-NAT-CCI-CD_-- 6/26/2009 11:15 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS June 29, 2009

BUSINESS DIARY CONTRACTS sell 15 Balance Hybrid Electric shuttle full suite of clinical applications. figured version of its IT portfolio man- D and P Leasing L.L.C., Detroit, is now buses equipped with Azure’s special- agement solution, Changepoint. Web- Plante Moran Cresa, Southfield, a Energy Conversion Devices Inc., offering a shared office option at 705 S. ized drive train to Minnesota-based site: www.compuware.com. commercial real estate advisory firm, Rochester Hills, announced that it has Main St. in Plymouth. Offices range Metro Mobility, the public transit ser- was engaged by Cornerstone Commu- extended its supply agreement with from 100 square feet to 15,000 square vice for Minneapolis/St. Paul region. nity Financial, Auburn Hills, to act as EnergyPeak, Pittsburgh, Pa. Energy- NEW SERVICES feet. Telephone: (313) 259-3458, ext. 124. owner representative for the credit Hennessey Capital L.L.C., Huntington Peak expects to purchase up to 12 Jaffe Raitt Heuer and Weiss P.C., union’s headquarters expansion and Woods, a specialty finance company megawatts of Uni-Solar laminates Southfield, has formed an immigra- renovation project in Auburn Hills. providing working capital to small from ECD through the end of 2011. tion practice group. DIARY GUIDELINES and midsize businesses, has complet- Azure Dynamics Corp., Oak Park, an- Aaron’s Restoration, Sterling Heights, ed a financing transaction with Glen- Send news releases for Business nounced that Blue Cross Blue Shield of NEW PRODUCTS announced the addition of Aaron’s dale, Ariz.-based Spectra Financial Diary to Departments, Crain’s Tennessee, Chattanooga, will use Home Improvement, a general con- Azure Dynamics Series CitiBus to con- Services L.L.C. TriMas Corp., Bloomfield Hills, a man- Detroit Business, 1155 Gratiot ufacturer of engineered and applied tractor. Telephone: (888) 442-2766. Web nect its employees at its corporate Oakland Physician Network Services, site: www.ahiexperts.com. Ave., Detroit, MI 48207-2997 or headquarters to other destinations in Waterford Township, an independent products, announced that its Mono- send e-mail to cdbdepartments@ gram Aerospace Fasteners, Los Ange- downtown Chattanooga. Elsewhere in physician organization, has selected OTHER crain.com. Use any Business Diary Tennessee, Azure announced two Bal- My One Health Information Exchange, les, business unit has developed the item as a model for your release, ance Hybrid Electric orders from the Bingham Farms, to electronically con- capability to produce seven types of ti- The Automotive Public Relations and look for the appropriate Nashville Metropolitan Transit Authority nect their members to the health care tanium screws used by large, commer- Council, Troy, has relaunched with a category. Without complete for its “Access Ride” program. Also, community. This collaborative solu- cial airframe manufacturers. Tele- new identity and logo designed by The information, your item will not run. Azure, Monticello, Minn.-based tion provides OPNS member physi- phone: (323) 722-4760. Quell Group, Troy, which donated its Photos are welcome, but we cannot Hoglund Bus and New Paris, Ind.-based cians a high-value, low-risk method to Compuware Corp., Detroit, is now of- time for the project. Web site: guarantee they will be used. Turtle Top Bus have reached a deal to securely communicate and access a fering the Agile Accelerator, a precon- www.autopr.org. REAL ESTATE

INVESTMENT PROPERTY INDUSTRIAL PROPERTY INDUSTRIAL PROPERTY COMMERCIAL PROPERTIES RETAIL SPACE PRICE REDUCED AVAILABLE NOW LYON TOWNSHIP/BANK OWNED Pontiac, Michigan Great Retail Opportunity 12-unit rental townhouse project available. 4,000 to 100,000 sq. ft. FOR SALE in the most sought after Get a great deal on this investment opportunity. Meadows of Catalpa Contact Karen Shepherd at 248-290-5300 ext. 311 Also 10,000 & 25,000 sq. ft. Warehouse Space for Lease retail destination in Metro Detroit! OFFICE SPACE Free Standing Bldgs w/truckwells. Almost free! - Expand your customer base - 1 Mile from Metro Airport • Rates as low as 17¢ a month gross share this spacious building with SOUTHFIELD OFFICE SPACE • Warehousing or Manufacturing Single office with full window wall available in REA CONSTRUCTION Michigan’s Premier Rug Retailer private, recently remodeled building. Great (734) 946-8730 • 5,000 to 200,000 sq.ft. for lease FOR LEASE location to all expressways. 248-353-8830 • Interior Truck wells and grade level doors Also Heavy Industrial 43235 Twelve Mile, Novi INDUSTRIAL PROPERTY Land Available • Sprinklered and heated building 4001 Indian Runn Dr. • Dayton, OH • Short term leases for temporary storage (12 Oaks Mall perimeter) www.reaconstruction.net •Lender Sale 313-835-2485 •323 Units 9,000 Sq Ft available •$9,500,000 or $29,411 Per Unit Brokers protected WATERFRONT PROPERTY Best deal in town! •More than 85% Occupied Off I-75  Grand Blanc  Low Lease Rates  Low Expenses •Received $1.5M in Renovations in 2008 On-site Mgmt  Exterior Pad Site Available Now Leasing 83,700 sq. ft. 48 Acres with 250 feet of Lake Frontage •All Available Due Diligence Provided Prior Investment/Hunting/Equestrian/Estate/Develop COMMERCIAL PROPERTIES to Bid Deadline Catellus Group, LLC (810) 695-7700 50 Min from Detroit (Linden, MI) No motors lake For More Info Please Contact: www.waretechindustrialpark.com $299,000- Reduced by 79K- (810)444-3510 248.324.2000 Barry Swatsenbarg [email protected] AUCTIONS: COMMUNITY PROPERTY FOR SALE Rich Deptula 34975 W Twelve Mile Rd Contact Ed at Lenox Square [email protected] Farmington Hills, MI 48331 www.friedmanrealestate.com (248) 763-0305

DEVELOPMENT PROPERTY

66751-66901 Gratiot Ave • Richmond, MI United States Bankruptcy Court •REO Asset •Stable, Long-Term Tenancy In Place Real Estate Sale •75% Occupied •10%+ CAP on In Place NOI •Asking Price $3,500,000 or $37/SqFt The following real estate for sale by order of the United States Bankruptcy Court: •93,904 SqFt Retail Opportunity • Grosse Ile - vacant lot 13 on Macomb Street - business district - multiple uses For More Info Please Contact: 248.324.2000 Rich Deptula • Highland - 2.53 acres - 340 Harvey Lake Rd - corner lot on M-59 Highland Road AUCTIONS [email protected] frontage - approximately 3000 sq. ft. building - adjacent to Highland Lakes Barry Swatsenbarg 34975 W Twelve Mile Rd Recreation area - current use: day care center [email protected] Farmington Hills, MI 48331 OPEN HOUSES: • Ferndale - 3160 Hilton Road - near I-696 - 2 large bay doors - excellent frontage - July 26th and August 2nd from 12-3PM www.friedmanrealestate.com display windows - corner location - approximately 2400 sq. ft. building # # • Romulus - Prime Ecorse City Community Subdivision vacant parcels located in Auction # Irish Hills - # WATERFRONT PROPERTY the proposed Wayne County/Willow Run Aerotropolis - bounded by I-94, Middlebelt, Smith & Brandt roads - over 200 lots with expressway frontage # Evans Lake # EUROPEAN LAKEFRONT ELEGANCE Sunday August 9th at 1PM # # • Romulus - 25 vacant lots - Taylor Road Subdivision - many adjacent to each # 1205 Lemm Lane # WEST BLOOMFIELD, MICHIGAN other - zoned residential - at the intersection of Eureka & Inkster Roads Preview & Registration at Noon # Tipton, Michigan # • Romulus - vacant 22 acre - 2 adjacent parcels - Eureka & Cogswell Roads Hey! We're Going to the Lake! • Romulus - vacant 20 acre parcel - east of Merriman Road - south of Ecorse Road • Romulus - vacant 5 acre parcel - Eureka Road - south of Middlebelt Road • Romulus - vacant 1/2 acre parcel - Merriman Road - north of Smith Road • Romulus - 7221 Merriman Road - frontage with tear-down house • Romulus - 30953 Ecorse Road frontage - 1 acre corner parcel - 900 sq. ft. house

A private oasis on 3+ acres with 156' on an all "AS IS" & "WHERE IS" condition. Sale subject to Court approval. Addendum required. All measurements & information are estimates. sports lake. Grand great room, gourmet kitchen, 4 fireplaces, 7 bedrooms, 5.3 baths, sophisticat- ed library. Walkout to lush gardens, salt water ALL OFFERS CONSIDERED Swim and Fish in your own backyard. Spectacular newly built home. 3500 +/- sq ft. Once infinity pool with waterfall and fountains. Full service elevator, 10 car garage. This home Bill Moy, Trustee's Realtor in a rare while will a truly magnificent home such as this to be available for auction. Built offers elegance, luxury and casual living at its Remerica Signature without compromise. Gourmet Kitchen w/red birch cabinets and granite counters, 2-story very best. Voted one of the top 100 places to E-mail: [email protected] Office: 734-432-9700 - Cellular: 313-333-3240 vaulted Great Room with fireplace overlooking Lake. Elegant Master suite and bath, private live in the U.S. - Money Magazine $4,900.00. 33014 File Mile Road living space above garage with 2 beds and bath for guest, 4 car garage, generator, 3/4 acre Nancy Spector Livonia, MI 48154 www. .com lot built in 2005. A home to be experienced in, an investment in yourself. 248-752-1002 RemericaSignature Arlene Haber ROSE AUCTION GROUP, LLC 248-891-1705 BETH ROSE, CAI AUCTIONEER CRAIN’S CLASSIFIEDS WORK! To Place Your Ad Call (313) 446-6068 or Fax (313) 446-1757 877.696.7653 www.RoseAuctionGroup.com Crain’s Classifieds Gets Results 20090629-NEWS--0017-NAT-CCI-CD_-- 6/26/2009 4:38 PM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 17

CRAIN’S SEEKS BEST-MANAGED NONPROFITS Detroit-area nonprofits are used to person by judges Nov. 3. CALENDAR dealing with stress, but this year Applicants must be a 501(c)(3) with has brought more challenges than headquarters in Wayne, Brighton. $20. Contact: (810) 623-5839. Legal & Financial Basics for Small usual. Good Washtenaw, Oakland, Macomb or TUESDAY Business. 9 a.m.-noon. July 21. Oak- management JUNE 30 land County Business Center; Carter Livingston counties. ABWA Novi Picnic Meeting. 6:30-9 p.m. has never been and Affiliates P.C. CPA. Covers many Application must include an entry July 8. American Business Women’s more important. Networking Business Coalition of of the key legal and financial issues form, a copy of the nonprofit’s most Northern Macomb County. 8-9 a.m. Association. Novi-DoubleTree Hotel. Therefore, this faced by both new and existing small recent audited financial statements New businesses are welcome to join year’s Best- $16. Pre-registration is required by businesses in Michigan. Executive Of- and a copy of the nonprofit’s most this networking group that meets Managed July 2. Contact: (586) 306-1826. fice Building, Waterford Township. recent IRS Form 990. every Tuesday morning. Romeo Unit- Nonprofit Free. Contact: (248) 858-0783. Previous first-place winners are not ed Methodist Church. Free. Contact: Contest will eligible; neither are hospitals, (586) 336-1513. Rockin’ on the River. 5:30-8 p.m. July 9. focus on ways nonprofits meet the HMOs, medical clinics, business Detroit Regional Chamber. Network- Improving Collections. 8:30-10:30am. challenges of the economy. ing event at the Roostertail, Detroit. July 21. Hennessey Capital L.L.C.; and professional organizations, Survive & Thrive Series: Navigating Examples include, but are not schools, churches or foundations. Free for Business Builder and above. Walsh College Through Rough Seas. 8-10 a.m. Hen- limited to: Contact: (313) 596-0343. Business Leader- The winners will be profiled in the nessey Capital; TM Group. With Ran- Ⅲ Donor retention/recruitment Nov. 16 issue, receive a special dal Charlton, exec- ship Institute. strategies. “best-managed” logo from Crain’s utive director of How to Become a Government Con- With Mike Se- manco, president, Ⅲ Finding ways to do more with for use in promotional material, and TechTown, and tractor. 9 a.m.-noon. July 9. Procure- Hennessey Capi- less. will receive recognition at the Murray Percival ment Technical Assistance Center. tal, Huntington Ⅲ Collaborations/mergers/cost- Crain’s Newsmaker of the Year Jr., president of Find out what it takes to sell your sharing strategies. lunch early next year. Murray A. Perci- Woods; and Can- goods and services to the federal gov- dace Pavliscak It is better for applications to focus For a copy of the application form, val Co., dis- ernment and the state of Michigan. Sr., vice presi- on strong execution of a single please send an e-mail request to cussing what Schoolcraft College, Livonia. $40. Con- dent, Hennessey initiative than to list several less- ycrawford or visit steps they have @crain.com tact: (734) 462-4438. Capital. Walsh developed efforts. www.crainsdetroit.com/nonprofitco taken to combat Semanco the loss of sales College, Troy. $15. As always, documentation of results ntest. and revenue in re- Business Process Management Fo- Contact: (248) 823-1392. is important. For information about the contest, Charlton cent times. Au- rum-Tools for Improved Profitability. Applications for the contest are due e-mail Executive Editor Cindy tomation Alley, 1:30-3:30 p.m. July 10. Datamatics Aug. 10. Finalists in this year’s Goodaker at [email protected] Troy. $40 members, $60 nonmembers. Global Services Inc. An opportunity CALENDAR GUIDELINES contest will be interviewed in or call (313) 446-0460. Contact: (800) 427-5100. for executives to network and discuss If you want to ensure listing online best practices for business process and be considered for print WEDNESDAY management. Automation Alley, publication in Crain’s Detroit Troy. Free, refreshments provided. Business, please use the online JULY 1 Contact: (734) 525-2217. calendar listings section of MARKET PLACE Enhancing Your Marketing with Adobe www.crainsdetroit.com. Here’s how to submit your events: Flash and other Cool Tools. 11:30 a.m.- Business After Hours. 5-7:30 p.m. July From the Crain’s home page, click 1 p.m. Lunch Ann Arbor Marketing. 15. Birmingham Bloomfield Chamber ANNOUNCEMENTS & FRANCHISE OPPORTUNITIES “Detroit Events” in the red bar With Andy Ross of Andy Ross Design, Networking event. Crust Pizza & discussing interesting uses for Adobe near the top of the page. Then, SERVICES Franchisee Investor Wine Bar, Bloomfield Township. $10 Flash. Conor O’Neill’s, Ann Arbor. click “Submit Your Entries” from Local franchise is looking for investors for well known Chamber members, $20 others. Con- FINANCIAL SERVICES fast food franchise. Please contact [email protected] Free. Contact: (734) 272-4698. the drop-down menu that will tact: (248) 644-1700. appear and you’ll be taken to our Unsecured Bus. Line of Credit EQUIPMENT & online submission form. Fill out MERCHANDISE COMING EVENTS Marketing Your Business. 9 a.m.-noon. the form as instructed, and then Up to $100,000 Unsecured click the “Submit event” button at Connections Group for Entrepreneurs. July 15. Oakland County Business Low Interest Rate the bottom of the page. That’s all OFFICE FURNITURE Noon-1 p.m. July 6. InSights Group. Center. Business counselors can guide there is to it. The meeting will feature training and you through successful techniques Other Financing Available: THE OFFICE FURNITURE WAREHOUSE information on ways to capitalize on and marketing principles. Executive More Calendar items can be found • Asset Based Commercial IS NOW OPEN IN TROY! lead generation and supporting mar- Office Building, Waterford Township. on the Web at • Accounts Receivable Quality new and used furniture at warehouse prices. 1100 E. Maple Road, west of I-75. keting strategy. InSights Group, $40. Contact: (248) 858-0783. www.crainsdetroit.com.

• Hard Money Lending Monday - Friday, 9:30 - 5:00. 248-585-5400 • SBA (Acquisition & Expansion ( MUST SELL, OFFICE CLOSED Desks $99, Chairs $39, Files $49, Partitions $50, • Note Purchase Financing Lateral Files $99, Cubicles, Office Phone Systems Call (248) 548-6404 or (248) 474-3375. Phone: (248) 687-1042 [email protected] JNH INVESTMENTS LLC Call Us For Personalized Service: (313) 446-6068

BUSINESS & CLOSING TIMES: Monday 3 p.m., INVESTMENTS one week prior to publication date. PARTNERSHIP AVAILABLE Please call us for holiday closing times. BUSINESSES FOR SALE FAX: (313) 446-1757 E-MAIL: [email protected] Established retail business for sale. Owner retiring We invite you to experience the difference that after 25 successful years. Turn key operation. Price INTERNET: negotiable. Contact [email protected] www.crainsdetroit.com/section/classifieds private flight travel can make. Confidential Reply Boxes Available Prototype and Short Run PAYMENT: All classified ads must be Stamping Company For Sale prepaid. Checks, money order or 30 Years in Business. Clinton Twp. Business Crain’s credit approval accepted. UÊ œÊ >ÃÏiÊi˜ÌÀÞʏiÛiÊÊ with building and all necessary equipment to Credit cards accepted. make prototype and small quantity stampings. ÊÊÊ«>À̘iÀà ˆ«ÃÊ Automotive and non-automotive. Owner See would like to retire. Call for all details. Crainsdetroit.com/Section/Classifieds UÊœÜiÃÌʜ«iÀ>̈˜}ÊVœÃÌÃÊÊÊÊÊÊÊ NO BROKERS. CALL 586-463-4000. for more classified advertisements ÊÊʈ˜ÊÌ iʓ>ÀŽiÌÊ UÊ
VViÃÃÊ̜ʜÛiÀÊx]äääÊÊ ÊÊÊ1°-°Ê>ˆÀ«œÀÌÃÊ UÊ*ˆœÌÃÊޜÕʎ˜œÜÊ>˜`ÊÌÀÕÃÌÊ UÊ/À>ÛiÊœ˜ÊޜÕÀÊÃV i`Տi]ÊÊ ÊÊʘœÌÊÌ iÊ>ˆÀˆ˜i½ÃÊ UÊ->viÊ>˜`ÊÃiVÕÀi

American Jet Management >Ê ˆŽiÊ>ÌÊn£ä°ÓÎÓ°{{{ÎʜÀʈ“Ê>ÌÊÓ{n°nÈä°ÈÎÇn 20090629-NEWS--0018-NAT-CCI-CD_-- 6/26/2009 5:49 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS June 29, 2009 Arena: A step to a new Wings venue? Leadership Detroit asks ■ From Page 1 While little is said officially means the Ilitches give up a cap south of I-75. about Detroit’s hockey arena situ- on property taxes at Joe Louis, Building a publicly owned alumni to help tackle issues ation, the first major move was which limits them to $252,000 an- hockey arena and leasing it to the made last week that will likely nually. Without the cap, the taxes team carries political risks be- BY SHERRI BEGIN WELCH cus alumni to take specific actions trigger events that culminate in a would be about $1 million. While cause it would require tax dollars CRAIN’S DETROIT BUSINESS in addressing ongoing issues. new hockey arena. the city owns Joe Louis, the lease in economically tough times. The roundtable discussions are On Friday, Ilitch-owned Olympia called for the Ilitches to pay the Any hint of tax dollars being Leadership Detroit is hoping the “a great start … a combination of a Entertainment announced it wasn’t property taxes — something that spent on sports stadiums instant- celebration of its 30th anniversary reunion with a renewed purpose to renewing the Joe Louis master could continue under a new lease, ly draws criticism. will serve as a new call to action come together to move the region lease, and instead will pursue a or be changed. Neil deMause, author of Field of for its alumni. forward,” Weatherston said. new deal. Speculation is that the Il- Detroit gets a cut of tickets, con- Schemes that’s critical of public The Detroit Regional Chamber pro- Each class has maintained rela- itches want a short-term deal that cessions, corporate and suite investment in stadiums, thinks Il- gram is inviting alumni of the pro- tionships, but there has not been allows them time to work out plans sales at both venues, which would itch “has to figure he has a pretty gram for discussions on the re- before now a way for the classes to and financing for a new arena on have been lost if the lease was re- good shot at taxpayer help,” ac- gion’s issues followed by dinner at intermingle, compare ideas and land they’ve bought in the Fox- newed. New surcharges could be cording to comments from his Eastern Market on July 14. basically start working across the town area. negotiated under a new lease and Web site. A number of alumni will lead classes on ideas that can move The lease decision had another, at a new arena. That’s because Ilitch already discussions on how the group can things forward, he said. more immediate ripple effect: Be- The lease, first negotiated un- has one stadium financed pub- work to reshape the region. “My hope is that the opportunity cause the lease included language der then-Mayor Coleman Young licly, so the blueprint is there for They include: Rick Sperling, and ability to mix across the class- that gave the Ilitches sway over after the Detroit Lions and Detroit a new hockey arena. founder of the Mosaic Youth Theatre es in the roundtable discussions any changes to Cobo Arena, which Pistons left for the suburbs, has “If he renews, he loses $1 million of Detroit; Roger Myers, president will bring forth ideas that are ac- Olympia manages, the non-renew- drawn criticism, including from a year in tax breaks, but gains mil- and CEO of Presbyterian Villages of tionable in addressing some aspect al clears the way for a Cobo Center the Detroit City Council that it tilts lions more in concessions, suite Michigan; Paul Tait, executive di- of the overreaching problems that expansion and preserve the North too far in favor of the Red Wings. rentals, and ticket taxes that he no rector of Southeast Michigan Council are still here,” he said. American International Auto Show Olympia now has until that longer has to share with the city,” of Governments; Casandra Ulbrich, There are a lot of good plans in downtown. July 1, 2010, date to reach a new he wrote. “If he tries to move or de- director of corporate and founda- the region, said Dan Piepszowski, Olympia was required to notify Joe Louis deal with the Detroit mand renovations to Joe Louis, he tion relations, Wayne State Universi- senior director for community the city by Tuesday of its inten- Economic Growth Corp., which has gets a shot at a building with more ty; Michael Williams, president, Or- leadership development at the De- tions with the lease, which ex- been the city’s lead on the situa- revenue-generating options — chards Children’s Services and Mary troit Regional Chamber. pires on July 1, 2010. Otherwise, it tion. It also would be involved in though that would likely only Kramer, publisher of Crain’s De- “The question then is why aren’t renewed for 20 years. any new arena effort, and has de- make sense if he can get the city troit Business. these plans brought to scale and The non-renewal was “a neces- clined to talk about the situation. and county to help pay for it.” Many of the issues the Leader- why have they not been implement- sary step in the process as we con- Both Comerica Park and Ford Other criticism is more muted ship Detroit 30 class is tackling are ed in ways that have impact?” tinue to work together to develop Field, home of the National Football about the team involved. similar to those addressed by the Leadership Detroit brings to- a new lease,” Ilitch Holdings Inc. League’s Lions, are owned by the “A lot of stadiums have been early classes, said William Weath- gether a group of people from di- President and CEO Chris Ilitch Detroit-Wayne County Stadium Au- economic losers because they erston, vice president at Harvey Ho- verse backgrounds and industries, said in Friday’s statement. thority, a quasi-public board of city were subsidized by taxpayers and hauser & Associates in Troy, a grad- said Lynne Aldrich, partner at Andy Appleby, CEO of and county appointees, and are the extravagant claims of new uate of the program and a Pitts-Aldrich Associates in Grosse Rochester-based General Sports leased to the county and then sub- jobs were unjustified,” Patrick volunteer member of the 30th an- Pointe and graduate of the pro- and Entertainment L.L.C., called the leased to the teams. Anderson told Crain’s in March. niversary planning committee. gram’s sixth class in 1986. Ilitch’s decision a smart strategy. The authority and the DEGC, He’s principal and CEO of East Since its inception, 1,800 people Henry Ford Health System COO “It gives them the flexibility to partially financed both ballparks. Lansing-based Anderson Economic have participated in the program. Robert Riney, an immediate past delay the whole decision,” he Wayne County Executive Group and former deputy budget “Although each class has ad- chairman of the Leadership De- said. “They could do a short-term Robert Ficano said he’s been ap- director for the state. dressed those issues, more than troit trustees, said he sees opportu- lease of some kind, and I think proached by the Ilitches about fi- “But the Red Wings are a anything else, Leadership Detroit nity for the group to play a larger from that point you also have the nancing a new arena, but de- proven attraction, here in Michi- has been a training ground,” role in helping the region. idea of when this economy might clined to say any more about it. gan and in Canada. I think they’re which is a good thing, he said. “I think convening Leadership be coming back. Even if they have Speculation is that a new hock- going to be a draw for people to But he and other alumni seek to Detroit grads around that issue is decided to build a new arena, now ey arena would be built on Ilitch- come to Detroit for a long time.” identify what the program has ac- our next big opportunity.” isn’t the best time to do it.” owned land in the Foxtown area Bill Shea: (313) 446-1626, complished as a cumulative group Sherri Begin Welch: (313) 446- Not renewing the master lease or between Grand River and Cass [email protected] and whether there is a way to refo- 1694, [email protected] Wind: $100M investment by GE key to building supply chain ■ From Page 1 “(An OEM’s) suppliers are also “You’re going to see changes over Michigan still has a long way to region is substantial,” Kaplan said. sify and smaller firms open. developing their products with time as new models evolve, and go to catch up with the bigger play- According to Emerging Energy The state ranked 10th in a recent them, and so proximity to the R&D rolling those changes is going to be ers such as Texas, Iowa and Col- Research, GE represents a 44 per- report by the Pew Charitable Trust in center is pretty important, be- a lot easier in a supply base that is orado, where OEMs have estab- cent share of the market in North the number of clean-energy jobs cause what it allows these suppli- in close proximity,” Hopp said. lished operations, said Matt America, producing more than with 22,674 in 2007. While the state ers to do is collaborate with the po- Roger Cope, president of strate- Kaplan, a senior wind analyst at then next five largest OEMs com- lost 3.6 percent of jobs from 1998 to tential OEM in the development of gic business development at Ster- Cambridge-based Emerging Energy bined. 2007, according to the report, the those products.” ling Heights-based MAG Industrial Research. Denmark-based Vestas Wind Sys- state had a 10.7 percent increase in Hopp says research he has con- Automation Systems L.L.C., agrees But Michigan has some of the tems A/S is second in North Ameri- clean energy jobs. ducted shows that products devel- that GE’s facility will help the keys to a supply chain, namely ca with 15 percent followed by Ger- A recent report by the Michigan oped and manufactured when sup- state’s burgeoning wind turbine proximity to shipping routes and many-based Siemens AG with 11 Economic Development Corp. indi- pliers, R&D centers and industry. places in the Midwest appropriate percent. cated there are now 700 Michigan manufacturing operations are “It puts us front and center in for wind farms. Access to the man- The Midwest is poised for more manufacturers doing wind-related close to one another are more effi- terms of manufacturing and sup- ufacturing and supply base for the investment by OEMs, said Ed We- work. cient and better in the long-term. plying this growing industry and automotive industry will be a key ston, director of the Cleveland- But GE CEO Jeffrey Immelt “We all talk about ‘the world is living in the community, seeing as well, he said. based Great Lakes Wind Network, a hinted during Friday’s announce- flat’ and everything is being glob- the executives that make the deci- The wind energy supply chain wind energy supply chain network ment that more could be on the alized, but there’s still value in sions, that kind of familiarity will remains decentralized across the advisory group. way. face-to-face conversation and the be very beneficial,” he said. United States, he said. Some com- With the established electric “What we would point out is ability to have a spur-of-the-mo- Cope is leading MAG’s efforts to ponents such as blades and towers grids, access to wind and available that companies like GE never trav- ment meetings,” he said. form a new venture dedicated to tend to be manufactured close to manufacturing base, states such as el alone, we bring other suppliers, The physical scale of wind tur- making advanced machine tools the sites where they will be used. Ohio, Michigan and Illinois are and tend to bring other people bine components — turbine blades for wind turbine manufacturing as The turbines can be manufac- likely locations for more OEM in- with us,” he said. can be up to 90 meters long — well as manufacturing turbine tured farther away and shipped vestment. “At the end of the day, 1,100 or makes a dense network of suppli- blades out of carbon fiber with easily. “There’s a vacuum where the 1,200 jobs from GE would equal an- ers and manufacturers a benefit to Eaton Rapids-based Dowding Ma- Having GE in Michigan is also a loads are, the workers are and the other couple thousand jobs that wind turbine production, more so chining Inc. key component of a supply chain, OEMs aren’t,” said Weston, whose are suppliers and builders and than in automotive. “What this will do for what has he said, because the company is firm has created an online data- things like that — the net effect is Also, a nearby network of sup- traditionally been our automotive far and away the largest turbine base tracking all wind energy sup- going to be substantial.” pliers, manufacturers and R&D supply base, this will put them system manufacturer. plier activity in the country. Daniel Duggan: (313) 446-0414, centers is especially important for front and center with another po- “GE is the number-one manufac- Michigan continues to grow in [email protected] emerging industries because of the tential customer in a different field turer in the United States, so an in- terms of the number of jobs related Ryan Beene: (313) 446-0315, pace of change in such industries. and one that is growing,” he said. vestment by that company in any to wind energy as suppliers diver- [email protected] 20090629-NEWS--0019-NAT-CCI-CD_-- 6/26/2009 5:50 PM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 19 Budget bill would cut Medicaid reimbursement LANSING — Medic- cuts for fiscal year begin- percent tax on physicians. The State requires licensure A therapist also would have to aid providers would see ning Oct. 1 are “com- concept is similar to a self-assess- consult with the physician if a pa- their reimbursement Capitol pletely unacceptable” ment already placed on hospitals, of physical therapy assistants tient doesn’t show a reasonable re- rates drop 8 percent Briefings and the state should be nursing homes and Medicaid Michigan will now regulate sponse to treatment. from this year’s origi- using federal stimulus HMOs. physical therapist assistants, un- nal levels, under a fis- money for needed fund- The tax would be designed to der a bill signed Friday by Gov. Changes sought in arbitration law cal 2010 budget ap- ing, not provider rate re- leverage additional federal Medic- Jennifer Granholm. Officials from about 30 commu- proved by the Senate ductions. aid funds, bring Medicaid physi- Public Act 55, sponsored Sen. nities and additional organiza- last week. She said that to hospi- cians’ reimbursements up to Bruce Patterson, R-Canton, re- tions have joined to press for The rate cut in the tals, the 8 percent equates Medicare levels, and provide funds quires licensure of physical thera- changes to PA 312 of 1969, which Michigan Department of to a total $112 million loss to mitigate the 8 percent Medicaid pist assistants and makes other mandates binding arbitration for Community Health budget of funding — $32 million rate cuts. changes, which include requiring police and fire union contract dis- would produce state Amy Lane in state general funds and A similar tax was proposed by the Michigan Department of Commu- putes with communities. general fund savings of $80 million in federal the Granholm administration in nity Health to develop rules estab- The Coalition for Fair and Efficient $94.9 million. matching dollars. 2005 as part of the budget, and then lishing professional development Government is chaired by Taylor The budget is expected to head “We can’t sustain an 8 percent and now the Michigan State Medical requirements for both physical Mayor Cameron Priebe. Its pro- to a conference committee, where cut in this economy,” Latham said. Society views it as a bad idea. therapists and assistants. posals, in part, target a communi- the Senate version and a House She said hospitals’ uncompensated The bill, which cleared the Legis- ty’s ability to pay an award, such “We fundamentally oppose that. version containing no provider care “is growing by leaps and lature June 18, would increase as requiring arbitrators to consid- That’s not the solution to the Med- cuts will be reconciled over the bounds” and the funding reduc- physical therapists’ annual license er the five-year impact of an award summer. tions would lead hospitals to lay icaid problem,” said Richard fees from $50 to $90 and extend that on a community and allowing arbi- The proposed reduction would off staff and cut services. Smith, president of the medical so- fee to physical therapist assistants. trators, after an award is issued, to bring rates 8 percent below those Physicians also are concerned ciety and senior staff, obstetrics Additional provisions affecting consider an unforeseen event like in effect prior to a 4 percent execu- about the Senate-passed budget, and gynecology, in Henry Ford Med- physical therapists include the re- a plant closing. tive-order reduction approved in and not just because of the 8 per- ical Group. quirement that a therapist refer a The coalition plans to be active May. cent cut. He said physicians “are not even patient back to a prescribing doc- in the Capitol and in local commu- Lori Latham, vice president of The budget includes specifica- compensated for the level of care” tor if the therapist believes there nities and expects to launch a Web political and public affairs for the tions for a “quality assurance as- they already provide, and adding a are symptoms or conditions that site in July. Michigan Health & Hospital Associa- sessment program” that, if enact- tax would lead to fewer physicians require service beyond the thera- Amy Lane: (517) 371-5355, tion, said the proposed 8 percent ed, could provide for an up-to 2 participating in Medicaid. pists’ scope of practice. [email protected]

SBIR: Venture-capital role sticking point for new federal funding ■ From Page 3 Michael Batterbee, director of gov- over 10 years to 3.5 percent of the enabled the former University of that’s what SBIR is all about,” he all the SBIR grants work,” he said. ernment relations for the Small Busi- federal government’s R&D budget. Michigan professor to open the Ann said. “It’s translational, translating “You’re an academic and you want ness Association of Michigan, which Batterbee said he’d prefer to see Arbor Center for Developmental and basic science into practical solu- to translate what you’re doing into supports the Senate’s legislation. the program reauthorized rather Behavioral Pediatrics — agrees. tions for people.” a model that’s practical in the real SBIR has always mandated that than get another one-year extension “If you want to look at it from a Solomon is waiting to hear if he’ll world, and that’s what SBIR is all individuals own 51 percent or more — but only on the Senate’s terms. policy perspective, what we need receive a $2 million Phase II grant. about.” of recipient companies, said Lisa Most important, Kurek said, is much more of is to move from “Here I am, fundamentally an Nancy Kaffer: (313) 446-0412, nkaf- Kurek, managing partner of Ann that the program be reauthorized. bench research into action, and academic, but this is the way almost [email protected] Arbor-based Biotechnology Business “We need stronger legislative Consultants, a firm that helps small- support, we need stronger match- business owners apply for SBIR ing funds for it,” she said. “And we funding, through grants or con- need this program to continue.” tracts, under a contract with the “It’s paramount that this pro- Michigan Economic Development Corp. gram get refunded,” said Thomas A lack of oversight led to compa- Collet, chairman and co-founder of nies with greater than 49 percent Ann Arbor-based Phrixus Pharma- VC-backing receiving SBIR grants, ceuticals. “I would hate for the ven- which led to a period of pull-back on ture-capital discussion to create so SBIR awards to VC-backed compa- much discord that in the end SBIR nies, Kurek said. Venture capital doesn’t get extended.” was a sticking point in last year’s Collet, who has received SBIR congressional debate. Phase I and Phase II grants of Batterbee said SBAM’s position $900,000 and $2.5 million, acknowl- is that increased SBIR funding op- edges that for life sciences compa- portunities for VC-backed compa- nies, the costs of bringing new nies could edge the true small-busi- drugs to market mount quickly. But ness owner out of the SBIR mix. he doesn’t favor a wider threshold “That’s the biggest problem with for VC-backed companies in SBIR. the VC inclusion,” he said. “Right now there’s so little VC Other provisions in the Senate money around, I personally would bills that SBAM supports include a prefer that VC-backed companies reauthorization until 2023 — the are not allowed to compete,” he House bills require the program be said. “But it’s more important for reauthorized in two years — and a the program to get funded.” provision to stair-step an increase Rick Solomon — recipient of of the funds for the SBIR program $700,000 in SBIR Phase I grants that

BANKRUPTCIES The following businesses filed for L.L.C., 51410 Milano Drive, Macomb, Chapter 7 or 11 protection in U.S. voluntary chapter 7. Assets and liabil- Bankruptcy Court in Detroit May 29- ities not available. June 4. Under Chapter 11, a company Lideon Industries Inc., 21961 Avon files for reorganization. Chapter 7 in- Road, Oak Park, voluntary Chapter 7. volves total liquidation. Assets: $0; liabilities: $99,964. Caravan Technologies Inc., 3033 Tutto Tile International L.L.C., 15061 Bourke St., Detroit, voluntary Chap- Technology Drive, Utica, voluntary ter 11. Assets: $149,234; liabilities: Chapter 7. Assets and liabilities not $208,017. available. Landquest Communities of Arkansas — Gabe Nelson 20090629-NEWS--0020-NAT-CCI-CD_-- 6/26/2009 5:18 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 29, 2009 Lawyers: No real winners in Rock Tops judgments

BY CHAD HALCOM Township company and its former judgments were entered in March. of materials before it closed. Nor- tional City Bank. The bank also con- CRAIN’S DETROIT BUSINESS president, Robert Thiede. A fourth case, on behalf of Farm- man Yatooma, attorney for ducted the sale of Rock Tops’ assets. The company closed Dec. 19, al- ington Hills-based Dwyer Marble & GranQuartz and president of Birm- Thomas Lindahl, attorney for There were no real winners after legedly without informing employ- Stone Supply Inc., was settled after ingham-based Norman Yatooma & As- Rock Tops and member at McDon- three court judgments for nearly $1 ees or several vendors or cus- the company bought some of Rock sociates P.C., said his client also ald Hopkins L.L.C. in Bloomfield million and an out-of-court settle- tomers, giving rise to five lawsuits. Tops’ inventory at auction to sell, bought some equipment back at Hills, declined to comment. Megan ment in a fourth case against the The latest judgment brings the said Ronald Deneweth, attorney auction for “a nickel on the dollar” McKnight, attorney for National now-shuttered granite countertop total to $976,203 in three lawsuits: for Dwyer and partner at De- and then obtained a judgment for City and an associate at Seyburn maker Rock Tops Inc., attorneys said. one by Prospect Investments L.L.C., neweth Dugan & Parfitt P.C. in Troy. $202,413 against Rock Tops to dis- Kahn Ginn Bess & Serlin P.C., did not Macomb County Circuit Judge another by Tucker, Ga.-based “We weren’t made whole. We miss the case. It then lined up a new respond to two phone calls and an Peter Maceroni entered a default GranQuartz L.P., and one by Industri- weren’t even paid,” he said. buyer on the equipment. e-mail seeking comment last week. judgment earlier this month for al Trade & Technology L.L.C. of New The company was accused of fail- One lawsuit remains pending in Chad Halcom: (313) 446-6796, $296,576.01 against the Macomb Jersey and Ohio. The other two ing to pay Dwyer for $890,395 worth Macomb County, on behalf of Na- [email protected]

Kroc: Rejected $48 million pledge sent Detroit center off track ■ From Page 3 “My understanding is the clear- side in lieu of the Kroc center, er (Wayne Webber) became on the Thielke said. project, the less it was in his inter- The Eastern Michigan Division ests,” Marshall said. “He was not Kroc rules changed over time, by location now plans to use capital reserves interested in water parks and to fund the smaller community recreation … his interests were al- BY SHERRI BEGIN WELCH Air and Space Museum — and would become available. center on the east side. It will have coholic rehabilitation and other CRAIN’S DETROIT BUSINESS the Holland Performing Arts Cen- Central Territory, however, a gym, lounges for senior citizens, interests like that.” ter — gave Central Territory con- said bequests designated specifi- a dance studio, a large chapel/au- The Salvation Army USA Central fidence in the pledge, Seiler said. cally for the Kroc center could be But early campaign leaders Territory started out with hard and ditorium with a stage for perform- question whether the local divi- Heritage Services is managing included in match amounts from ing arts and worship, a dining fast fundraising rules for the sev- the fundraising and construction the beginning. The Chicago divi- sion followed through on the Web- en divisions it awarded Kroc cen- room and a commercial kitchen to bers’ offer, following the departure of the Omaha Kroc Center, which sion was to raise its $50 million provide meals from the site. ter grants. is expected to be completed this match by the fall of 2010 in order to of Harvey, former executive direc- But as the campaigns have The smaller center will replace tor of development Russ Russell fall. The group has raised nearly get $109.8 million from the Kroc es- the Harding Center and operate gone on, it’s made adjustments to the full $15 million, Seiler said. tate and to begin its site develop- and volunteer fundraising leader those rules and the timetables for with the aging center’s $400,000 an- Wayne Doran, who is retired “The full amount was pledged ment and construction. To date, nual budget and very minimal raising money, said Col. Carol by Heritage Services, but they do it’s raised just 33 percent of the full chairman of Ford Motor Land Devel- Seiler, territorial coordinator for membership revenue, Marshall opment Co. not own the building,” she said. match but 90 percent of its “first said. strategic mission planning for “We have the ownership of the phase” requirement, Seiler said. In April, Doran, who blamed in- the Army’s Central Territory. But the “20,000-square-foot Sal- ternal politics for his departure, building and the property … it “We broke their project into vation Army church” is not ac- “Each Kroc center community was not the same deal as what was three phases … so that if they did- said the Salvation Army had is a little different … but the over- ceptable, said Maggie DeSantis, “dropped the ball” on the campaign. being proposed for the Webber n’t make the total goal they president of the Warren/Conner De- all guiding principles and issues Foundation” to front the money would still have the standalone By April, roughly three years af- are the same,” she said. velopment Coalition, former mem- ter launching the Kroc campaign, for the Detroit Kroc center. center,” Seiler said. ber of the blue ribbon fundraising “As new issues came up, we The Chicago Division also was the Eastern Michigan Division had looked at them … (but) we ap- panel for the Kroc center and one raised just $3 million and failed to allowed to begin using Kroc of the leaders of the Save Our Kroc plied them to everyone.” Chicago funds beginning two years ago to meet an interim fundraising goal to Central Territory originally Center Coalition. secure one lead gift of $5 million. The Salvation Army Chicago Met- run programs in West Pullman, “What we want is a Kroc center required all Kroc center projects ropolitan Division is also proceed- the neighborhood where the Kroc Central Territory put the mile- to have most or all of their full … a huge, state-of-the-art transfor- stone target in place in November ing with construction without center will be located. mational center with massive pro- match in hand before beginning the full match in hand. Initially, Kroc money was to be to make sure fundraising was pro- gramming … (and) only a small construction. On June 10, the division an- tapped for programs only after gressing in step with site design piece of it as the church,” she said. nounced that it planned to begin centers were built. and program development, Seiler As originally envisioned, the site development of its Kroc cen- “What Chicago has been doing said. Kroc center would have housed an Omaha ter this fall and construction next is building relationships,” oper- It became clear the division was events hall, library, computer cen- In 2007, it allowed the Omaha year after raising just $16.4 mil- ating music camps, and Scouting spending about as much as it was ter, dance studio, child-care cen- Salvation Army in Nebraska to be- lion of the $50 million it needed to programs in the area targeted for bringing in for the Kroc center, said ter, senior citizen lounges, track, gin building on the strength of a raise in matching funds. the Kroc center, Seiler said, Maj. Todd Thielke, divisional secre- gymnasium and natatorium. pledge from a local nonprofit The amount raised to date in- speaking on behalf of the Chicago tary and Detroit city commander. “If they would have come to us civic group, Heritage Services, cludes lead gifts from two anony- division, which deferred com- “It was getting to the point and said, ‘we have to build a small- which said it would raise the $15 mous donors, one for $5 million ment to Central Territory. where we were not making enough er Kroc center, we can’t raise this million or cover it. and the other for $8 million. One “There is some Kroc money go- progress.” much money, but we still want to The group’s success in oversee- of the gifts was a bequest, some- ing to fund those programs right Central Territory offered the lo- build a Kroc center that included ing the fundraising, financing thing those involved in the De- now because they are developing cal division the chance to downsize recreation, education, fitness and and construction of several other troit campaign said could not be Kroc center programs,” Seiler the project and with it the match- performing arts programs,’ the major projects in the Omaha area included in endowment matches said. ing requirement to raise $12.5 mil- community would have been at the — including the Joslyn Art Muse- earlier in the campaigns because Sherri Begin Welch: (313) 446- lion rather than the $48 million the table,” DeSantis said. um, Durham Museum, Strategic it was unknown when the money 1694, [email protected] division proposed initially to pro- The decision to revoke the fund- duce more operating revenue and ing from the Eastern Michigan Di- fund larger construction. the project,” Curnow said. sible,” he said. budgets if they are a couple of vision for the Kroc center is irre- The division said it was looking Central Territory in April Central Territory officials said years out right now.” versible, Seiler said. at ways to downsize the project, in- turned down the Eastern Michi- they are not yet sure where the $50 According to the terms of Kroc’s But the coalition, made up of east cluding possibly cutting the size gan Division’s request to continue million pulled from Detroit will be will, half of the money must go to Detroit community groups, does back to 60,000 square feet, making raising money the next two years allocated. endowment for a Kroc center and not accept that. It plans on Tuesday use of shuttered city recreational under the terms of its original plan As of March, the Kroc money for the other half to construction. to take 150 youths and adults who centers in Detroit and/or partner- with an extension of about a year operating endowments had lost Since losing the Kroc center live or work on Detroit’s east side ing with Wayne County to include and more money for fundraising, about 14 percent of its value, but grant, the Eastern Michigan Divi- to the Central Territory’s head- the county’s aquatics center in the and pulled its commitment for $50 every Kroc center project “has its sion has given the land donated for quarters in Des Plaines, Ill., to Chandler Park area, where the million in Kroc money. own budget; we are not mixing the center at Conner and Frank- protest the decision in person. Kroc center would have been locat- “There’s a certain time when funds,” Seiler said. fort near Chandler Park back to Funding for the rally comes from ed, as part of the project. you have a responsibility to be fis- The endowment losses are unre- the city of Detroit and the Detroit donations from members of the But the plans didn’t meet the vi- cally prudent,” said Seiler. alized declines because the centers Housing Commission/ U.S. Depart- Save Our Kroc Center Coalition, sion for the massive new Kroc cen- About three years into the five- are not all operating right now, ment of Housing and Urban Develop- the Detroit Food & Fitness Collabo- ters, said Jeff Curnow, public and year campaign, the division had she said, adding the Salvation ment, said Thielke. rative of the W.K. Kellogg Foundation, corporate relations manager for used 95 percent of the funds bud- Army believes there will be some “Right now, we have no plans to the Detroit Housing Commission, the Salvation Army USA Central geted for the fundraising effort, recovery of lost value. build a center on that land,” he St. John Health System, the Detroit As- Territory. Thielke said. “In the meantime we’re being said. sociated Food & Petroleum Dealers As- “And our fundraising council in “That just shows we were striv- very conservative … holding peo- The division still is exploring sociation and others, the coalition Detroit said that even if they cut ing to make every effort to bring ple to their development (fundrais- where it will locate the $6 million, said in a release. (the match) back to $12.5 million … that $50 million into this commu- ing) budgets and asking them not 20,000- to 30,000-square-foot center Sherri Begin Welch: (313) 446- donors weren’t interested in doing nity and make the Kroc center pos- to spend the maximum of those now planned for Detroit’s east 1694, [email protected] 20090629-NEWS--0021-NAT-CCI-CD_-- 6/26/2009 6:14 PM Page 1

June 29, 2009 CRAIN’S DETROIT BUSINESS Page 21

Angels: Detroit, Windsor investors to unite efforts www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] sts or banks. put him in touch with Mark Mel- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] Nouveau’s potential listing drum, director of a tech incubator MANAGING EDITOR Andy Chapelle, (313) 446- comes via a Canadian investment Canadian process speeds public funding at the University of Windsor. 0402 or [email protected] vehicle called a capital pool com- Galdi also was introduced to ASSISTANT MANAGING EDITOR/FOCUS Jennette Canadian regulators allow $2 million. At that point, the CPC Smith, (313) 446-1622 or [email protected] pany. Because rules governing something called capital pool must make one investment, members of the Ontario invest- BUSINESS LIVES EDITOR Michelle Darwish, (313) CPCs require a Canadian head- ment community. Meldrum, Galdi, 446-1621 or [email protected] companies to be set up for com- which then allows it to be listed COPY DESK CHIEF Gary Piatek, (313) 446-0357 quarters, Nouveau will be based in panies to get public funding on the venture exchange and Mike Labiak, a private investor in or [email protected] the Odette School of Business at the much earlier than they would in raise $18 million more through Windsor, and Paul Maasland, a ASSISTANT NEWS EDITOR Jeff Johnston, (313) University of Windsor. member of angel groups in both 446-1608 or [email protected] a traditional initial public offer- the sale of public shares. DATA EDITOR Anne Marks, (313) 446-0418 or Rick Galdi, president of Great ing, permitting a newly created The traditional angel invest- London and Toronto, eventually [email protected] Lakes Angels, said Nouveau will pooled $200,000 of their own money WEB GENERAL MANAGER Alan Baker, (313) 446- company that has no assets other ment model involves individuals 0416 or [email protected] target companies affiliated with than cash and no commercial op- making relatively small invest- to start the CPC. WEB EDITOR Christine Lasek, (313) 446-0473, TechTown, the University of Wind- “We’ve all had frustrations with [email protected] erations to go public. ments of $25,000 or so in a few WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) sor and University of Western Ontario The first stage in a CPC is for companies that might take five these investment nights,” said 446-0403, [email protected] in London. The investment range founding members to raise at or 10 years to grow to the point at Meldrum. “Entrepreneurs come EDITORIAL SUPPORT Robertta Reiff (313) 446- will be $250,000 to $750,000 per com- out of them with great hope, but so 0419, YahNica Crawford, (313) 446-0329 least $100,000. Nouveau Angel Capi- which they can have what is NEWSROOM (313) 446-0329, FAX (313) 446- pany, well above what a company tal Corp.’s four founders — Great called a liquidity event — getting few deals get done. We thought 1687 TIP LINE (313) 446-6766 would generally expect to get in a Lakes Angels’ President Rick sold or going public — which, if there has to be a better way.” REPORTERS typical angel deal. Galdi; Mark Meldrum, director all goes well, returns a profit to “This changes the paradigm dra- Ryan Beene: Covers auto suppliers, steel, higher Concurrently, the Angels signed matically. This changes the land- education. (313) 446-0315 or [email protected] of a tech incubator at the Universi- the angel investors. Daniel Duggan: Covers retail, real estate and a contract in June to re-affiliate ty of Windsor; Paul Maasland, a The drawback to the typical scape for how angel investing gets hospitality. (313) 446-0414 or with TechTown after a stint at OU member of the Southwestern On- model is the individual angel has done,” said Galdi. “Once you have [email protected] Inc., the incubator at Oakland Uni- a venture-capital-sized checkbook, Jay Greene: Covers health care, insurance and the tario Angel Group in London, On- limited diversity in his or her port- environment. (313) 446-0325 or versity, and have opened an office tario, and the Maple Leaf Angels in folio and very little liquidity. The deals will come.” [email protected]. at the Wayne State University-affili- “We’re very excited about it,” Chad Halcom: Covers law, non-automotive Toronto; and Mike Labiak, a CPC model allows for that $25,000 manufacturing, defense contracting and Oakland ated incubator. Windsor investor — invested a to be spread over more companies, said Noble. “This is bringing Cana- and Macomb counties. (313) 446-6796 or “Upon our return, we made total of $200,000. giving greater diversity and to al- dian and American businesses, en- [email protected]. them aware that we weren’t com- trepreneurs and sources of fund- Tom Henderson: Covers banking, finance, The next step is to raise anoth- low the angel investor liquidity technology and biotechnology. (313) 446-0337 or ing back just to hang out, but that er $1.8 million, with at least 200 through the sale of shares. ing together for job and company [email protected]. it would be with an opportunity creation. When you can do some- Nancy Kaffer: Covers small business, the city of investors required for the total of — Tom Henderson Detroit, Wayne County government. (313) 446- that would bode well for Tech- thing like this in a unique and cre- 0412 or [email protected]. Town,” said Galdi. “We want to ative way, it’s very exciting.” Bill Shea: Covers media, advertising and find best-of-breed early-stage com- trepreneurship at Wayne State. A making and more fluid investing. David Brophy, an associate pro- marketing, entertainment, the business of sports, and transportation. (313) 446-1626 or panies that have had difficulty second conference is planned for His group holds monthly fessor of finance at the University of [email protected]. finding funding.” July 25, and if that fills up, a third evening meetings at which repre- Michigan and director of the Nathan Skid: Multimedia reporter. Also covers the food industry. (313) 446-1654, [email protected]. Companies targeted for invest- will be held in August. sentatives of two early-stage com- school’s Center for Venture Capital Sherri Begin Welch: Covers nonprofits and ment include current TechTown “I am absolutely delighted. Mon- panies make their pitches to and Private Equity, said greater liq- services. (313) 446-1694 or [email protected] tenants as well as new companies ey is the fuel that drives new eco- would-be investors, but deals are uidity “is the most important idea. LANSING BUREAU being formed by a TechTown-Kauff- nomic activity,” said Randal infrequent and the process is hap- That’s always been the bugaboo.” Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- man Foundation alliance, which Charlton, TechTown’s executive hazard. One unintended benefit for U.S. 5355, FAX (517) 371-2492, [email protected]. or hopes to create 400 new companies director. “This couldn’t have come Last June, Galdi was introduced investors, he said, will be access to 115 W. Allegan, Suite 220, Lansing 48933. in Southeast Michigan over the at a better time.” as president, succeeding founder Canadian research universities ADVERTISING

next three years. Last year, after being named David Weaver, at the meeting at and high-quality tech companies ADVERTISING DIRECTOR Marla Downs, (313) Last Wednesday, a capacity president of Great Lakes Angels, Noble’s home. they otherwise wouldn’t have 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) crowd of 500 would-be entrepre- Galdi told Crain’s he wanted to Subsequently, Galdi met with come across. 393-0997 neurs attended the alliance’s debut form a dedicated pool of money that Josy Parrotta-Marck, a trade com- Tom Henderson: (313) 446-0337, ADVERTISING SALES Jeff Anderson, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, event, an all-day conference on en- would allow for faster decision- missioner with the consulate, who [email protected] Kimberly Ronan, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 CLASSIFIED SALES SUPERVISOR Terri Engstrom, (313)-446-0351 MARKETING MANAGER Irma Clark Fifth Third program EVENTS MANAGER Nicole LaPointe Foreclosure: Picture soon to change MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica aims to head off ■ Crawford From Page 3 CIRCULATION Candice Yopp, Manager. ment of reducing equity and inter- foreclosures in the past year. zation opposes one of the law’s re- SALES, MARKETING INTERN Kim Winkler loan problems PRODUCTION MANAGER Wendy Kobylarz est rates can bring a borrower’s According to Irvine, Calif.-based quirements, which may push more PRODUCTION SUPERVISOR Larry Williams, loan to 38 percent or less of their in- RealtyTrac Inc., 13,891 Michigan foreclosure cases into court. (313) 446-0301 With Michigan’s unemploy- come, the lender must work with homes in May were either sold back If the lender doesn’t offer a modi- CUSTOMER SERVICE ment rate on the rise, Fifth Third the borrower. to the lender or subject to a notice fication, it must pursue a “judicial MAIN NUMBER: Call (888) 909-9111 or write Bank, Eastern Michigan will start [email protected] Farmington Hills-based Trott & of trustee sale. foreclosure,” which involves a a program to contact its loan SUBSCRIPTIONS $59 one year, $98 two years. Trott P.C., which often represents In April, there were 605 foreclo- lengthy court process, rather than a Out of state, $79 one year, $138 for two years. customers and educate them Outside U.S.A., add $48 per year to out-of-state lenders in foreclosure cases, ex- sure home listings in Macomb “foreclosure by advertisement,” in rate for surface mail. Call (313) 446-0450 or before there are loan problems. (888) 909-9111. pects more business as lenders County, 870 in Oakland and 1,521 in which the lender must publish no- The bank started a program SINGLE COPIES: (888) 909-9111. need help contacting borrowers Wayne, according to Mount Pleas- tice of foreclosure in a newspaper. REPRINTS: (800) 290-5460, ext. 125; (717) 399- called “You Have Options” in and setting up mediation sessions, ant-based Default Research Inc. “It’s more costly, more time-con- 1900, ext. 125; or ashley.zander@theygsgroup 2007 to reach out to customers .com. said president and managing part- In May, there were 3,586 foreclo- suming for these cases to go before TO FIND A DATE A STORY WAS PUBLISHED: who have loans headed toward ner David Trott. sure sales in metro Detroit com- a judge,” she said. (313) 446-0367 or e-mail [email protected]. foreclosure, said Jack Riley, se- Trott said his firm currently han- pared with 2,369 non-foreclosure “The banks don’t want the homes CRAIN’S DETROIT BUSINESS IS PUBLISHED BY nior vice president of market- dles loss mitigation for 75 lender sales, according to data from Farm- back,” Madziar said. “No bank CRAIN COMMUNICATIONS INC. ing. clients. ington Hills-based MLS RealComp II makes money on a foreclosure.” CHAIRMAN Keith E. Crain While the original program PRESIDENT Rance Crain “The changes are aimed at get- Ltd. The median price on a foreclo- Ralph Roberts, a Sterling Heights SECRETARY Merrilee Crain was aimed at certain cus- ting the lender and the borrower in sure sale was $26,400, compared Realtor who counsels homeowners TREASURER Mary Kay Crain tomers, the new program will Executive Vice President/Operations the room together,” he said. “This with $110,000 for a non-foreclosure on real estate, loan modifications William A. Morrow be aimed at all customers. will slow down foreclosures and sale, making the median price for and foreclosure, said the key to the Group Vice President/Technology, “We’re telling people that if Manufacturing, Circulation help with foreclosure avoidance.” total sales in the region $50,000. success of the new process will be Robert C. Adams you’re finding yourself facing Likewise, on the other side of the Even a small cut in foreclosure training given to the people the Vice President/Production & Manufacturing something you’ve never faced Dave Kamis table, Redmond Law Firm P.C. works filings will make a large impact on lenders offer homeowners for coun- Corporate Director/Circulation before, such as a layoff, a job in- with homeowners in the foreclo- the region’s residential market, seling. Patrick Sheposh terruption, loss of an income, sure process and expects to hire said Kelly Sweeney, president and He expects that finding loan mod- G.D. Crain Jr. Founder (1885-1973) come and see us before you fall Mrs. G.D. Crain Jr. Chairman (1911-1996) more employees to handle the cas- CEO of Birmingham-based Weir ification options for consumers will EDITORIAL & BUSINESS OFFICES: behind,” he said. es, said Nicholas Chapie, an associ- Manuel Realtors. remain difficult, however. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) In many cases, getting home- 446-6000 ate at the Bloomfield Hills-based “Foreclosed properties and “It’s still a lot harder to modify Cable address: TWX 248-221-5122 AUTNEW DET owners to talk to their lenders firm. (bank-owned) properties are going your loan and save your house than CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the about problem loans is difficult Overall, he expects the added for ridiculously low prices and it was for Wall Street to give you a third week of January, and a double issue the because they think they’re re- fourth week of August by Crain Communications counseling and communication in destabilizing the entire market,” he bad loan at the start,” he said. Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. ceiving collection calls, he said. the industry to have an impact. said. The bills send an important mes- Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address But in the past 90 days, he “There’s a lot of potential, and I While addressing foreclosure is sage to the banks, Roberts said: changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- said, enough attention has been can see foreclosure cut in half,” he an important goal, Gail Madziar, “They care about what is happen- 9732. GST # 136760444. Printed in U.S.A. paid to the topic of bad loans that said. vice president of membership and ing to people on Main Street.” Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. more people are responding. Michigan has consistently communications for the Michigan Daniel Duggan: (313) 446-0414, Reproduction or use of editorial content in any — Daniel Duggan ranked as one of the top states for Bankers Association, said her organi- [email protected] manner without permission is strictly prohibited. 20090629-NEWS--0022-NAT-CCI-CD_-- 6/26/2009 5:51 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS June 29, 2009 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 20-26

pursue other opportunities, get ahead of possible feder- by what he said was the the chamber said. al legislation, Rick Murdock, slow pace of investments by Lawmakers Ⅲ Bradley Lott, director of executive director of the venture-capital and private- the state Defense Contract Michigan Association of Baptists had equity firms that have re- Coordination Center since Health Plans, and Felicia ceived money from the approve Cobo mid-2007, will leave his post Wasson, associate state di- state-funded programs. June 30 to focus on his St. rector for government af- Glencoe’s timing was coin- Clair County-based consult- fairs with AARP Michigan, cidental. auto show bills a hot time at ing company. told an editorial board awmakers Friday meeting Tuesday with Cattle Baron’s Ball mooves passed another deal Crain’s Detroit Business. that aims to keep the OTHER NEWS to Oakland University L Ⅲ Some private and em- North American International Ⅲ Blue Cross Blue Shield of ployed physicians at William the Riverside The American Cancer Soci- Auto Show at its current Michigan has decided to pro- Beaumont Hospitals in Royal ety, Great Lakes Division is home in Detroit’s Cobo Cen- vide a $6 million grant to Oak have formed a new uring the National Glencoe Capital L.L.C. had to moving its seventh annual ter beyond 2010. the Michigan Health and Hos- physician group, called Beau- Baptist USA confer- open up a Michigan office Cattle Baron’s Ball Legislation approved by pital Association for re- mont Physician Organization, D ence in Detroit, the and get a staff in place, it fundraiser to a new date the House and Senate calls search to improve health and joined Medical Advantage Detroit Riverside Hotel — for- took it a little longer to get and new location, while for a nearly $300 million ex- care quality and patient Group, an East Lansing-based merly the Pontchartrain — the money flowing from its eliminating a major head- pansion of Cobo and the safety, and to reduce costs. physician management com- was the hottest hotel in half of the $300 million In- liner entertainer. creation of a regional au- Ⅲ The Engineering Society pany. town. vestMichigan program an- This year’s event, which thority to run and renovate of Detroit honored David Ⅲ The Detroit International Literally. nounced by Gov. Jennifer will take place Nov. 7 at the building. The five-mem- Skiven, a Bridge Co. has accused the After the air conditioning Granholm last July than it Oakland University’s ber authority, which would longtime Michigan Department of went out in the hotel, out-of- took the two firms manag- Shotwell Pavilion, still will make payments to Detroit General Transportation of trying to town Baptists were shuttled ing the other half of the feature live music, food, for leasing the facility, Motors delay the $230 million Am- all over, taking extra rooms money. midway games and an auc- would include representa- Corp. exec- bassador Bridge Gateway in other hotels. Some decid- But today, Glencoe is ex- tion. tives from the city, the gov- utive who Project as retribution for ed to stay in the hotel. pected to announce that it The venue change and ernor’s office and Wayne, helped its opposition to a new Two calls to management has closed on its first in- elimination of the headliner Oakland and Macomb start the bridge, which is partially at the hotel were not re- vestment from the $150 will allow a greater percent- counties. Engineer- an MDOT effort. turned. million Michigan Opportuni- age of revenue to go to can- Gov. Jennifer Granholm is ing Society Ⅲ President Barack Oba- ty Fund, a $10 million equi- cer research, said commu- expected to sign the bills. of Detroit ma will hold a town hall Skiven Michigan banks not on ty investment in Grand nications manager Kate Detroit has until Aug. 1 Institute, meeting in the Detroit area Rapids-based American Edu- Dietrich. to reject transferring Cobo with the society’s Horace on July 14, the AP report- FDIC cease-and-desist list cation Group, which is Ticket prices are not yet to the authority. If that hap- H. Rackham Humanitarian ed. building a national net- final but will be less than pens, a facility in Oakland Award on Thursday. Ⅲ Detroit’s Downtown De- The Federal Deposit Insur- work of private, prekinder- the $200 charged for the County — likely the Rock Fi- Ⅲ Michigan lawmakers velopment Authority voted ance Corp. released on Fri- garten-to-12th-grade event in previous years, she nancial Showplace in Novi — left for their two-week sum- Thursday to tear down the day the final tally of its ad- schools to meet the de- said. has an opportunity to host mer break Friday without 14-story Lafayette Building. ministrative orders for mands of special-needs stu- New this year is an after- the show. agreeing on a budget for the The vote follows a Detroit May, and it was good news dents. glow event for young pro- fiscal year that starts Oct. 1. City Council refusal earlier for Michigan banks. The other half of the In- fessionals at $75 per ticket, Ⅲ U.S. Marshals, acting on this week to give the build- The FDIC issued 20 cease- Monica Conyers pleads vestMichigan program, the with more food, music, net- a request by the Food and ing a historic designation. and-desist orders for U.S. $150 million Growth Capital working and a separate auc- guilty in Synagro probe Drug Administration, on Ⅲ A payroll audit at De- banks, which require them troit Public Schools uncov- Fund, is managed by Farm- tion. Detroit City Council Presi- Thursday seized more than to improve their banking ered 257 people who will be ington Hills-based Beringea dent Pro Tem Monica Cony- 30 generic drugs and ingre- practices or face takeover, investigated for possibly L.L.C. and New York-based ers pleaded guilty Friday to dients manufactured by De- and none were for banks in BITS & PIECES being “ghost employees,” Credit Suisse, which has conspiring to commit troit-based Caraco Pharma- Michigan. Four were for the Detroit Free Press re- been on the ground in the Ⅲ The Marketing and bribery for allegedly ac- ceutical Laboratories Ltd. banks in Georgia and three ported. state for three years, man- Sales Executive of Detroit cepting two payments from Ⅲ Oakland County Cir- in Florida. There were 257 un- aging the $95 million Ven- honored Christopher Ilitch, a Synagro Technologies offi- cuit Court Judge Nanci The FDIC ended cease- claimed paychecks and di- ture Michigan Fund and the president and CEO of Ilitch cial in late 2007. Grant ordered Republic Engi- and-desist orders against rect-deposit slips totaling $109 million 21st Century In- Holdings Inc., as the 2009 Ex- Now pressure is mount- neered Products Inc., a key two banks, satisfied with about $208,000 after all DPS vestment Fund, which has ecutive Leader June 25 at ing for Conyers to resign supplier of American Axle & their improved perfor- workers were told to pick invested $28.8 million in MotorCity Casino Hotel in her seat. Detroit’s City Manufacturing Holdings Inc., mance, and one was the up the paperwork by June seven state companies. Detroit. Charter says that a mem- to resume steel deliveries, Muskegon Commerce Bank. 12. The Glencoe announce- The event also recognized ber convicted of a felony is easing concerns that the Ⅲ A new Medicare Fraud ment comes a week after the MSED Platinum Award subject to forfeiture of of- auto parts maker would Strike Force in Detroit has Glencoe invests state VC Greg Main, president and recipients, sales and mar- fice proceedings. But the cease production. Republic secured indictments CEO of the Michigan Econom- keting professionals who charter is vague in defining halted its steel shipments funds in chain of schools against 53 people alleged to ic Development Corp., told have made exceptional those proceedings and their last month. have defrauded the govern- Given that Chicago-based Crain’s he was disappointed achievements. outcome. Ⅲ Secretary of State Terri ment by billing for services A report Friday by the Lynn Land said she won’t that were unnecessary or Detroit City Council’s Re- run for governor in 2010 never provided, mostly by search and Analysis Divi- and is backing Oakland providers of infusion thera- sion said a convicted offi- County Sheriff Michael py and physical therapy. cial is entitled to a public Bouchard for the job, the AP Ⅲ Detroit Public Library hearing, but the charter reported. Ⅲ State Rep. Alma Wheel- Commissioner Jonathan Kin- doesn’t spell out what such loch told the Detroit Free BEST FROM THE BLOGS a hearing might entail. er Smith of Salem Township Press that library staff has READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS said she will launch her De- mocratic gubernatorial learned that the city spent BRIGHT SPOTS campaign today at Washte- $6.2 million in property tax Tiger Stadium: Can’t let it go Rallying ‘round railways money since July 1 that Ⅲ naw Community College. In 2008, member agen- Ⅲ Eastern Michigan Univer- was supposed to go to the li- I've crossed the Bay More light-rail cies of the Economic Develop- sity plans to raise tuition brary, the AP reported. of“ Honduras in a skiff in projects“ are on tap to ment Coalition of Southeast and fees 3.8 percent in the 30-foot seas while the link suburbs to the city Michigan brought more than fall, raising to $8,377 annu- Rastafarian captain and Minneapolis to St. $1 billion in investment OBITUARIES smoked a spliff as big Paul. When the M1 Rail al tuition and fees for un- through 183 projects to the dergraduates who are Ⅲ Rosemary Blanton, own- as a cigar ... I've chased project is built on region, creating or retaining a spider monkey in the Woodward — and it links Michigan residents, the AP er of the now-closed Rose- 19,688 jobs, according to a re- Amazon ... and nothing to the rail that will soon reported. mary’s Fashions in Grosse I’ve ever done was nearly connect Detroit and Ann port on Detroit Renaissance Ⅲ Legislation to reform Pointe Woods, died June 11. as adventurous as the Arbor — will the Inc.’s Web site. the individual health insur- She was 84. spring day in 1959 when Southeast Michigan ance market, now in com- Ⅲ Sam Williams, founder at age 11 I rode the bus downtown by region catch the same transit bug? I think ON THE MOVE mittees in the state House and chairman of Walled myself for a doubleheader. it could. Lake-based aviation en- Ⅲ and Senate, is expected to Reporter Tom Henderson’s blog about” accounting, Publisher Mary” Kramer’s behind the scenes Jesse Bernstein, CEO undergo changes over the gine-maker Williams Interna- banking, venture capital and high tech can be found in Detroit business blog can be found Ann Arbor Area Chamber of summer with votes expect- tional Corp., died June 22. at www.crainsdetroit.com/henderson at www.crainsdetroit.com/kramer Commerce, has resigned to ed in September so as not to He was 88. DBpageAD.qxd 6/1/2009 3:48 PM Page 1

Cable bundle keep you tied to the office? We have an escape plan.

You can’t do all your business in the office. So stay productive where business takes you with AT&T wireless service on the nation’s fastest 3G network, High Speed Internet with access to over 20,000* AT&T Wi-Fi hotspots, plus local and long distance – all starting under $100 a month. It’s how AT&T takes you where Comcast can’t. And that’s how you can make your business Stretch.

Call a small business advisor at 1-877-367-4493 or visit att.com/AllForLessDetroit

All-For-Less, starting under Voice, High Speed Internet, Wireless, Access $ 00 to over 20,000 AT&T Wi-Fi Hotspots. 100 a month

Starting under $100/Mo. Offer excludes taxes, fees and other charges, which are extra. Offer requires customers subscribe to AT&T Business Local Calling Assurance,SM AT&T Business Unlimited CallingSM for long distance, AT&T High Speed Internet 1.5 Mbps (where available) and AT&T Nation GSM 450 wireless plan with combined billing for all services. Term commitments required. Early termination fees apply. Available to single location business customers with 1-4 local access lines. Offer expires 8/31/09. Advertised services, including 3G, not available in all areas. Wi-Fi Basic service not available with AT&T Worldnet service. *Based on non-municipal company owned and operated hotspots. An Internet-enabled device required. Other restrictions apply. See www.att.com/businesswifi for add’l details and locations. Offers may be modified or discontinued at any time without notice. Other conditions apply to all offers. Call or visit att.com/AllForLessDetroit for complete details.

©2009 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand. DBpageAD.qxd 6/26/2009 9:29 AM Page 1