20080105-NEWS--0001-NAT-CCI-CD_-- 12/31/20085:24PMPage1 ©Entire contentscopyright2009byCrainCommunicationsInc.Allrightsreserved 8 MileBusinessAssociation nouncement lastweekbythe months, accordingtoanan- their fundsinthenextfew or demolitionworkwith to beginacquisition,resale million. Thoseareasexpect will receivemorethan$69 and RoyalOaktownships and WarrenplusRedford Park, Livonia,Southfield Ferndale, HazelPark,Oak cities ofDetroit,Eastpointe, for resaleorredevelopment. bled propertiesatadiscount munities topurchasetrou- coming monthstoallowcom- will bedisbursedoverthe Urban Development U.S. DepartmentofHousingand allocated inthefallby $3.92 billionfederalpackage homes. abandoned orforeclosed property valuesbybuying coming yeartooffsetfalling lion infederalfundsforthe apply acollective$134mil- Mile Road,willreceiveand ties, including10alongEight ship, withsomecommuni- million forWaterfordTown- lion forDetroittojustover$2 range insizefrom$47.1mil- funds tobuyhouses 19 communitiesgetHUD

NEWSPAPER www.crainsdetroit.com Vol.25,No.1 This JustIn Inside Page 17 $3B defensecontract Local companiesscopeout Page 3 a nationalpresence Inland Pipeacquires Page 3 business playbook Detroit Lionsredo Along EightMile,the The fundsarepartofa Nineteen localcommuni- Allocations fromHUD See ThisJustIn,Page2 . Thefunds . town crowdandtherestof est andgreatestinfrontofahome- guered industrytoshowoffitslat- couldn’t bebetterforabelea- the entireindustry,timing ruptcy thatcouldhavecrippled them tonarrowlyavertabank- and lion rescueof U.S. TreasuryDepartment ed tohavethepressbuzzing. the automakersandbrandsexpect- Benz, Toyota Buick, Dodge,Ford,Honda,Mercedes- global orNorthAmericandebuts. than 50vehicleswillmaketheir san, Porsche,Rolls-Royce on automakersthatoptedoutof days Jan.11-13. kicks offatCoboCenterwithpress American InternationalAutoShow show mustgoon.The2009 is newmantra Economy, notglitz, leaner greener, NAIAS show. GM isexpectedtounveilattheauto one ofthreenewproductionvehicles The 2010BuickLaCrossesedanis com/extra www.crainsdetroit. at NAIAS,goto For moreoncars W And comingontheheelsof But showorganizerssaymore The preshownewshascentered These aretoughtimes,butthe BEXTRA EB Chrysler L.L.C. CRAIN’S DETROITBUSINESS AND B Y R R and ICK YAN General MotorsCorp. See NAIAS,Page21 Volvo K B RANZ EENE that enabled subishi, Nis- Rover, Mit- rari, Land namely money — marketing conserve the showto are among ’s $17.4bil- and Suzuki. North Fer- JANUARY 5–11,2009 Treasury avoiding state,somebankerssay figure easilysurpassedbyPuertoRico,whose TARP fundsinvestedsofargoingtostatebanks,a based zens RepublicBancorpInc. none inSoutheasternMichigan—Flint-based Two ofthemwereheadquarteredinMichiganand bursed to208banksnationwide. lion ofTARPmoneyhasbeendis- billion ofthefirstround$250bil- Treasury Website,atotalof$172.5 tions stillpending. of Jan.15forapprovingapplica- sweet. spective oflocalbankers,notso Program isshortand,fromtheper- part oftheTroubledAssetRelief funding fromthe gan-based banksthathavereceived proaching, asummaryofMichi- short endofTARP Michigan banksget That worksouttotwo-tenthsofonepercentthe As ofDec.29,accordingtothe The Treasuryhassetadeadline With thedeadlineforfederalapprovalfastap- Mary SueColeman Profiles on onHre ailLepKnMtikL.BrooksPatterson KenMatzick DanielLoepp John Hertel Independent BankCorp. otajb etajb pndahtl Spearheaded atransitplan. Opened ahotel. Kept a job. Lost ajob. Newsmakers CRAIN’S DETROITBUSINESS B h esae fteYa ilb none a.19 theYear willbeannounced Jan. NewsmakerThe of e eodfracptlcmag.Madeacomeback. Set arecord for acapital campaign. Y T U.S. Treasury OM Pages 6-7. H Kwame Kilpatrick Richard Dauch ENDERSON got $300millionandIonia- got $72million. as Year inReview, 32million $372 $172 billion Here’s what theydid: 208 banksnationwideinthe Of TARPfundsdistributedto Distributed totwoMichigan 2008 Popu- John Dingell Citi- first round banks gan asofJune30,its272trailingChase’s297. City hadthesecondmostbankbranchesinMichi- leaguered lion ofits$7.7billioninTARPmoneytobuythebe- included forthisstorybecauseGMACisnotatradi- L.L.C. Dec. 29thatDetroit-based lar Inc. Pages 12-13 of the Several areacommunitybankers,whoaskednot would receive$5billionbutthatmoneyisnot bank got$935million.(Itwasannouncedon National CityCorp. John Ferchill . The absurd, The . announced itwoulduse$5.2bil- based ey tobelimited. in thestatebasedonTARPmon- but analystsexpecttheirlending in Michiganhavebeenapproved gional banksthathavebranches Corp. land-based the offerof$84million—Mid- proved forfundingbutdeclined tional bank.) And inOctober,Pittsburgh- Many nationalandlargere- One otherstatebankwasap- Year PNC FinancialServicesGroup GMAC FinancialServices of Cleveland.National $2 acopy;$59year Chemical Financial See TARP,Page19 Dan Gilbert Page 14. ® 20080105-NEWS--0002-NAT-CCI-CD_-- 12/31/2008 4:55 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 5, 2009

Private-equity M&A deals off cated shows. will cater to seniors who are be- interceptor, but will save money THIS JUST IN Blair was paid upfront to gen- ginning to show signs of forget- on the refinancing because a 2.5 Mergers and acquisitions fi- erate that much advertising over fulness. percent interest surcharge will be ■ From Page 1 nanced by private equity plum- 18 months, but court records The 70,000-square-foot facility dropped. meted in the first 11 months of show Adell claims only $253,000 is owned by MetSun L.L.C., a joint The transaction still requires ties obtaining a share of funds al- 2008, according Thomson Reuters. in sales. venture between MetLife Inc., approvals from Detroit and the located to Wayne, Oakland, Ma- The number of deals financed WADL is unaffiliated with a New York, and Sunrise Senior Liv- Macomb Wastewater Disposal Dis- comb and Washtenaw counties. by private equity nationwide national network. ing, McLean, Va. trict and was part of a compromise Other recipient communities in- dropped by 24 percent from the — Bill Shea — Jay Greene reached Dec. 18 in the long-run- cluded Pontiac, Taylor, Clinton same period of 2007 to 1,383, with ning federal court case before U.S. Township, Canton Township, the deal value off by 75 percent, End of sewerage dispute to District Judge John Feikens over Dearborn, Sterling Heights and from $501.7 billion to $127.4 bil- Acord consolidates offices DWSD treatment plant pollution Lincoln Park. lion. save Macomb County $50M of the Detroit River. — Chad Halcom The total volume of M&A ac- Acord Holdings L.L.C. will con- — Robert Ankeny tivity in the U.S., regardless of solidate three of its offices into A settlement of disputes be- funding, fell by 22 percent, to one building in Rochester Hills, tween the Detroit Water & Sewer- Rehmann shortens name, has 8,190, with the value falling by 31 increasing its office size. age Department and the suburbs Shapiro named to board of acquisitions take effect percent, from $1.6 trillion to $1.1 The company manufactures will save Macomb County sewer Holocaust foundation trillion. State data was not avail- leather trim for the automotive customers an estimated $50 mil- Today, the Rehmann Group L.L.C. able. industry and is currently using lion over the next 30 years, Pub- Director Steven Spielberg’s Sur- will announce it has shortened its — Tom Henderson three buildings in Rochester lic Works Commissioner Anthony vivors of the Shoah Visual History name to Rehmann for branding Hills. It will move into the 70,000- Marrocco said. Foundation has named local real purposes and that, effective Jan. 1, Adell Broadcasting Corp. sues square-foot building at 2655 Prod- Marrocco said the savings estate developer Mickey Shapiro to it had affiliated itself with Nexia In- uct Drive in the TAN Industrial comes from Macomb buying con- its board of councilors. ternational, a London-based coali- N.Y. advertising sales firm Park, using more space. Colliers In- trol of 20 miles of sewer intercep- Spielberg created the founda- tion of auditors and consultants ternational, Southfield, was the tor from DWSD and sharing con- tion in 1994 to document the testi- with 620 offices in 97 countries. The parent company of Clin- trol of another 19 miles of Detroit monials of Holocaust survivors ton Township-based WADL-TV brokerage. Also on Jan. 1, two acquisitions — Daniel Duggan interceptor with Oakland Coun- and other eyewitnesses. announced earlier went into ef- Channel 38 has sued a New York ty. Shapiro, a principal at Lautrec fect, of MSW Group P.L.C. in Farm- City-based national broadcast Macomb County plans to sell Ltd. in Farmington Hills, was ington Hills and of Pridnia LaPres sales firm to recoup $1.5 million Bloomfield Hills getting new bonds for about $83 million to born in a displaced persons camp, P.L.L.C. of Muskegon. Chairman in what the station says is a pay off Detroit for the amount the son of Holocaust survivors. and CEO Steve Kelly said the addi- failed deal to deliver advertising. Sunrise assisted living center still owing for construction of the — Sherri Begin Welch tion of MSW’s revenue of $4.7 mil- The lawsuit, filed Dec. 5 in Ma- A 132-resident assisted living lion and Pridnia LaPres’ revenue comb County Circuit Court, seeks center that is specifically de- of $2 million will boost the return of the $1.5 million signed to treat seniors with early CORRECTION Adell Broadcasting Corp. said it Rehmann’s revenue to about $75 memory loss will open in Bloom- Ⅲ In a story on the struggles of state venture capitalists on Dec. 22, Peter paid in 2007 to Petry Media Corp. million. field Hills on Jan. 29. Farner, a general partner at Tgap Ventures in Kalamazoo, was quoted as The Saginaw-based firm em- subsidiary Blair Television Inc. While Sunrise Senior Living’s saying, “We’re not going to do anything until we see how this all shakes ploys more than 600, about 220 in The deal was part of the sta- Bloomfield Hills Terrace Club is not out.” He said he was paraphrasing a reaction he is getting from some Farmington Hills and Troy. tion’s shift to an urban format for people diagnosed with would-be investors and not speaking on behalf of the fund. He said Tgap — Tom Henderson centered around popular syndi- Alzheimer’s disease, the facility still hopes to close on a new $15 million round of funding by the end of the first quarter.

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January 5, 2009 CRAIN’S DETROIT BUSINESS Page 3 Novi’s biz growth beats odds On the Grow

Topouzian. Location, state tax breaks spur an uptick Topouzian will give a report to the City Council tonight on Novi’s BY CHAD HALCOM ager Clay Pearson. The total prop- St. John Health opened in Septem- progress toward its economic-de- CRAIN’S DETROIT BUSINESS erty tax base is roughly $3.6 bil- ber and which pays no local prop- velopment goals. lion, in a city that’s more than 60 erty taxes to Novi as a nonprofit “It seems to be holding pretty For a community far flung from percent residential. corporation. But Pearson credits steady,” he said. “We’re seeing the urban center, Novi has done “We’re thinking about an even Providence Park for attracting new retail, but that’s mostly part better than the odds might call for $1.4 (billion),” he said. “And much new medical office space and the of a steady turnover in retail that’s in commercial growth and eco- of that is new business. It’s not as 108-room Staybridge Suites Hotel, going on in many places, with just nomic attraction. much as we’ve added in some pre- which opened across Grand River a little growth in other areas.” Maylong Group finds path to In assessment numbers to be fi- vious years, but it’s one of the Avenue from the Providence med- Matthew Sosin, president of nalized later this month, city offi- stronger results you’ll see with all ical campus in February. Farmington Hills-based Northern growth in GPS sales, Page 17. cials currently expect Novi’s non- that’s going on in the whole re- The city hosts more than 1,600 Equities Group, said the company’s residential property valuation for gion, and the larger economy.” businesses, an estimated increase 400 or so acres in Novi’s Haggerty 2009 to increase by at least $50 mil- The increased tax base does not of 2 percent to 3 percent over a Corridor Corporate Park is proba- lion above the January 2008 valua- include the $229 million Providence year ago, according to Novi Eco- tion of $1.34 billion, said City Man- Park Hospital, which Warren-based nomic Development Manager Ara See Novi, Page 18 Company index These organizations appear in this week’s Crain’s Detroit Business: American Axle ...... 6 Ann Arbor State Bank ...... 15 Better Business Bureau ...... 15 Blue Cross Blue Shield ...... 7 Lions redo Pipeline to BorgWarner ...... 4 Chemical Financial ...... 1 Chrysler ...... 1 Citizens Republic Bancorp ...... 1 Citizens Research Council ...... 5 Cobo Center ...... 13 Community Central Bancorp ...... 19 growth Dearborn Bancorp ...... 19 biz playbook Detroit Auto Dealers Assn...... 21 Detroit Free Press ...... 13 Detroit Lions ...... 3 Acquisitions, new technology help Detroit Red Wings ...... 12 New offense changes biz, Detroit Water and Sewerage Dept...... 13 Flagstar Bancorp ...... 19 Inland Pipe gain a national presence Ford Motor ...... 1 marketing, football strategy General Dynamics Land Systems ...... 17 BY DANIEL DUGGAN nal pipe. General Motors ...... 1 CRAIN’S DETROIT BUSINESS The company has made three Giffels-Webster Engineers ...... 19 BY BILL SHEA both on and acquisitions of other companies Greektown Casino ...... 15 CRAIN’S DETROIT BUSINESS off the field. When governments talk about in the past 18 months, giving it a Health Care Assn. of Mich...... 16 He won’t talk Independent Bank Corp...... 1 Bob Raymond saw firsthand “infrastructure improvements,” national presence and the exclu- about all the Joe Cutillo’s ears perk up, espe- Inland Pipe Rehabilitation ...... 3 Detroit’s previous sports nadir sive rights to use new technolo- details, but he cially when it comes to the mas- Kus Ryan & Assoc...... 19 when the Detroit Tigers, for whom gies for underground pipe re- Lear Corp...... 4 said it’s a sive infrastructure plan being he was in charge of ticket sales, pair. Loomis Sayles & Co...... 4 comprehen- planned by President-elect lost an American League-record As a result, Inland now has of- Maylong Group ...... 17 sive business, Barack Obama. 119 games in 2003. fices in Atlanta, Jacksonville, Mich. State Univ...... 12 marketing “Typically, The team rebounded to recap- Knoxville, Houston and Los An- Mich. Credit Union League ...... 16 and football it’s roads, Mich. Health & Hospital Assn...... 16 ture Motown’s heart with a sur- geles. Raymond strategy that bridges, water MPRO ...... 16 prise World Series run two years Inland also has the exclusive will be un- and sewer,” he N. Amer. Int’l Auto Show ...... 1 ago. Raymond, seeking a new right to a process used mainly in veiled in stages over the coming said. “And New Liberty Bank ...... 19 challenge last year, found one Europe called Expanda, where Northern Equities Group ...... 3 months — and already has be- when it’s wa- premade metal coils are inserted Paramount Bancorp ...... 19 across Brush Street with the De- gun with coach Rod Marinelli’s ter and sewer, troit Lions as the team’s vice pres- firing last week, the promotion into a sewer pipe to repair it. Pinnacle Race Course ...... 12 we’re very in- So far, Inland has laid 1 mil- Prestolite Electric ...... 17 ident of business operations. of two front-office executives terested.” “Now all I see are Tigers hats and a freeze on ticket prices. lion feet of the product in Califor- Providence Park Hospital ...... 3 Cutillo is PSB Group ...... 19 and coats around town. That can nia. That product is part of a The objective is to win, yet president and Pulte Homes ...... 4 Cutillo “green suite” of products Inland happen here,” he said. winning isn’t a tradition for the CEO of Inland Quicken Loans ...... 6 To make it happen, he’s Lions, and victories are dear for has been rolling out, which also Pipe Rehabilitation L.L.C., a De- includes use of an adhesive that Quinn Law Group ...... 18 among those crafting a plan to a franchise that owns a single Staybridge Suites Hotel ...... 3 troit-based company that has is not harmful to the environ- resuscitate the winless Lions See Lions, Page 20 been growing at an aggressive The Detroit News ...... 13 ment. Univ. of Mich...... 6 pace by acquiring the rights to Revenue growth has been University State Bank ...... 15 new technologies to repair and free-flowing as well. Westin Book Cadillac ...... 12 replace underground water and In 2006, the company’s revenue William Beaumont Hospitals ...... 7 sewer pipes. was $31.8 million. It jumped to The key to the company’s suc- $78 million in 2006 and is just un- cess revolves around digging — der $110 million for 2008. that is, by not having to dig. “We’re expecting 25 percent Department index Through a process called growth for 2009,” Cutillo said. Cured In Place Pipe, Inland can To accommodate the new BANKRUPTCIES ...... 15 repair and replace underground growth, the company recently BRIEFLY ...... 15 pipes without digging the pipes moved to a new facility in Detroit BUSINESS DIARY ...... 10 up. Workers insert a rubber on Michigan Avenue near Clark CALENDAR ...... 10 sleeve coated with an adhesive Street. The building is a major CAPITOL BRIEFINGS...... 5 into a pipe and then inflate the expansion from its last head- sleeve with air. Once the sleeve CLASSIFIED ADS ...... 15 dries, it’s stronger than the origi- See Pipeline, Page 19 KEITH CRAIN...... 8 NATHAN SKID/CRAIN’S DETROIT BUSINESS LETTERS...... 8 MARY KRAMER ...... 9 2009 Book of Lists Newsmakers of the Year Breaking news OPINION ...... 8 THIS WEEK @ Get thousands of Meet all 10 on our Keep up on the latest PEOPLE ...... 11 business contacts in an interactive Web list. breaking business news. RUMBLINGS ...... 22 WWW.CRAINSDETROIT.COM easy Excel download. WEEK IN REVIEW...... 22 20080105-NEWS--0004-NAT-CCI-CD_-- 12/31/2008 5:26 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 5, 2009 BRIEFLY TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES State utilities get rate increases State regulators on Dec. 23 ap- proved an $83.6 million electric rate increase for Detroit Edison Co. Year unkind to local public companies and a $22.4 million natural-gas rate increase for Consumers Energy Co. BY RYAN BEENE percent of its value, but it still Detroit Edison (NYSE: DTE) had CRAIN’S DETROIT BUSINESS lost more than 50 percent. most recently requested a $284 mil- BorgWarner shares closed at YEAR-END STOCKS lion increase, while Consumers Metro Detroit public compa- $21.77 per share on Dec. 31, down Energy (NYSE: CMS) sought a 12/31/08 12/31/07 PERCENT nies felt more than their fair 55 percent since the end of 2007. 2008 PERFORMANCE CLOSE CLOSE CHANGE $91.1 million increase. share of this year’s economic Still, many of the area’s Integral Vision Inc. $0.16 $0.07 128.6 — Amy Lane and stock market malaise as biggest corporate names were Pulte Homes Inc. $10.93 $10.54 3.7 they performed well below the deep into negative territory. More cuts at Federal-Mogul Standard & Poor’s 500 Index. Shares of Borders Group Inc., Aastrom Biosciences Inc. $0.50 $0.52 -3.8 David Sowerby, chief market Visteon Corp., Valassis Communica- University Bancorp Inc. $1.90 $2.20 -13.6 Southfield-based Federal-Mogul analyst at Loomis Sayles & Co L.P. tions Inc., Domino’s Pizza Inc., Gen- DTE Energy Co. $35.67 $43.96 -18.9 Corp. (OTCBB: FDMLQ) said last in Bloomfield Hills, says for in- eral Motors Corp., Ford Motor Co., ITC Holdings Corp. $43.68 $56.42 -22.6 month it would cut 4,600 additional vestors, 2008 was like a bad date Penske Automotive Group Inc. and Compuware Corp. $6.75 $8.88 -24.0 jobs and was expanding the plan it — don’t call me again. many others were down at least Energy Conversion Devices Inc. $25.21 $33.65 -25.1 announced in September to close, “It’s not surprising that 50 percent from the end of 2007. Universal Truckload Services Inc. $14.16 $19.16 -26.1 consolidate and downsize compa- Michigan would be down even “Almost all companies have Somanetics Corp. $16.51 $23.65 -30.2 ny facilities. more in an extremely difficult been harmed by the national re- The restructuring is expected to year because our DNA has a cession, but Michigan has an on- Kelly Services Inc. $13.01 $18.66 -30.3 cost about $80 million through much larger share in consumer going burden,” said Dana John- Meadowbrook Insurance Grp. Inc. $6.44 $9.41 -31.6 2009, in addition to the $60 million cyclical stocks, which is primar- son, chief economist at Comerica Sun Communities Inc. $14.00 $21.07 -33.6 to $80 million in expected costs re- ily auto related,” Sowerby said. Bank. Credit Acceptance Corp. $13.70 $20.67 -33.7 lated to the company’s restructur- The average stock price for The heavy concentration of Eagle Capital Growth Fund Inc. $5.00 $7.57 -33.9 ing announced in September. metro Detroit public companies companies that rely on con- Kaydon Corp. $34.35 $54.54 -37.0 About 8,600 jobs are expected to dropped 59.3 percent in 2008, sumer spending, specifically au- Syntel Inc. $23.12 $37.72 -38.7 be eliminated in all. The new cuts compared with a 38.5 percent tomotive companies, makes the will begin in the first quarter. drop for the S&P 500. metro Detroit corporate land- Agree Realty Corp. $18.13 $30.10 -39.8 Federal-Mogul has not identi- The withering auto industry scape especially vulnerable dur- First Mercury Financial Corp. $14.26 $24.40 -41.6 fied sites slated for closure, consol- fueled the regional decline as ve- ing economic downturns. Rockwell Medical Tech. Inc. $4.19 $7.18 -41.6 idation or downsizing. hicle sales plummeted, automak- “It’s sort of a double whammy CMS Energy Corp. $10.11 $17.38 -41.8 — Ryan Beene ers slashed vehicle production — structural problems have United American Healthcare Corp. $1.45 $2.54 -42.9 and subsequent orders for vehi- been intensified by the cyclical Taubman Centers Inc. $25.46 $49.19 -48.2 cle parts and credit dried up. weakness in the national econo- Tecumseh stock issuance blocked Masco Corp. $11.13 $21.61 -48.5 Hardest hit were auto suppliers my,” Johnson said. Lenawee County Circuit Court with strong ties to the Detroit 3. But not every sector had as Enercorp Inc. $0.03 $0.05 -50.0 Judge Timothy Pickard on Dec. 23 Despite efforts to adjust its op- bad a year as automotive. Asset Acceptance Capital Corp. $5.11 $10.41 -50.9 signed a temporary restraining or- erations to match the market, “Outside of autos, most Michi- TechTeam Global Inc. $5.85 $12.60 -53.6 der stopping the Dec. 31 issuance shares of Southfield-based Lear gan companies were on par with BorgWarner Inc. $21.77 $48.41 -55.0 of 36 million new shares of Class A Corp. were obliterated, losing the tough year experienced in Penske Auto Group Inc. $7.68 $17.46 -56.0 stock for Ann Arbor-based Tecum- $26.25 or 95 percent since Dec. 31, the broader U.S. indexes,” Rofin-Sinar Technologies Inc. $20.58 $48.11 -57.2 seh Products Co. (NASD: TECUA) 2007 when shares were worth Sowerby said, adding financial, Tecumseh Products Co. $9.58 $23.41 -59.1 The company was issuing new $27.66. It closed at $1.41. technology and nonautomotive Detrex Corp. $3.20 $8.40 -61.9 shares to existing Class A and In the third quarter when car, industrials performed close to Class B shareholders to trigger a pickup truck and SUV produc- their counterparts nationwide. Bonal International Inc. $1.02 $2.75 -62.9 clause in its bylaws that would tion in North America dropped One possible bright spot was Community Central Bank Corp. $2.30 $6.21 -63.0 convert all shares into Class B vot- about 15 percent, production of Bloomfield Hills-based Pulte Domino's Pizza Inc. $4.71 $13.23 -64.4 ing stock and diminish the power the 15 vehicles with the highest Homes Inc., which closed Dec. 31 Caraco Pharm. Labs. Ltd. $5.92 $17.15 -65.5 of Todd Herrick, its ousted former concentration of Lear products at $10.93 per share up 39 cents or Ford Motor Co. $2.29 $6.73 -66.0 chairman and CEO. dropped 33 percent, the company 3.7 percent compared with the FNBH Bancorp Inc. $4.40 $13.50 -67.4 — Chad Halcom has said. end of 2007. Perceptron Inc. $3.40 $10.63 -68.0 The seat-maker relied on Gen- The company has been fo- Eternal Image heads to OTC eral Motors Corp. and Ford Motor cused on cash flow and cutting Ramco-Gershenson Prop. Trust $6.18 $21.37 -71.1 Co. for about 42 percent of its costs throughout the year as Saga Communications Inc. $1.65 $5.89 -72.0 The Securities and Exchange Com- 2007 sales and about the same new-home demand has sagged Oxford Bank Corp. $7.00 $26.15 -73.2 mission has approved a move from amount in 2008, according to and falling property values CruiseCam International Inc. $0.01 $0.05 -75.6 the Pink Sheets to the Over The company filings with the U.S. Se- caused the company to incur $1.2 ArvinMeritor Inc. $2.85 $11.73 -75.7 Counter Bulletin Board by Farming- curities and Exchange Commission. billion in write-downs through Dearborn Bancorp Inc. $1.66 $7.73 -78.5 ton Hills-based Eternal Image Inc. Through the third quarter, the first nine months of the year. Arotech Corp. $0.41 $2.11 -80.6 (OTC: ENTL). Lear posted a net loss of $1.7 mil- In November, Pulte said it Delphi Corp. $0.03 $0.14 -81.4 — Nancy Kaffer lion on revenue of $10.9 billion, would invest $10 million and compared with net income of bring 350 employees to Michigan TRW Automotive Holdings Corp. $3.60 $20.90 -82.8 Moody’s downgrades MSX $214.5 million on $12.1 billion in as it consolidated offices from 26 PSB Group Inc. $1.50 $8.75 -82.9 revenue during the same period states here, the same day it said Am. Axle & Mfg. Holdings Inc. $2.89 $18.62 -84.5 Moody’s Investors Service has in 2007. it would no longer issue its quar- Amerigon Inc. $3.26 $21.14 -84.6 downgraded MSX International Inc. The company has taken many terly dividend of 4 cents per Origen Financial Inc. $0.59 $3.89 -84.8 ratings outlook to negative from steps to bolster liquidity and cut share. The moves were part of Federal-Mogul Corp. $4.23 $29.50 -85.7 stable, in large part because of its costs in the last year, such as the company’s overall strategy Trimas Corp. $1.38 $10.59 -87.0 ties to the automotive market. cutting jobs, reducing or delay- to reduce costs and bolster cash Moody’s also downgraded the ing capital expenditures, draw- reserves, which totaled $1.2 bil- General Motors Corp. $3.20 $24.89 -87.1 Warren-based automotive staffing ing from its credit lines, even lion by the end of the third quar- Valassis Communications Inc. $1.32 $11.69 -88.7 firm’s corporate family rating to clearing the way with the SEC ter. The company had said it Flagstar Bancorp Inc. $0.71 $6.97 -89.8 Caa1 from B3 and its $205 million, on Dec. 23 to issue up to $500 mil- hoped to boost cash reserves to Hayes Lemmerz International Inc. $0.45 $4.57 -90.2 12.5 percent senior secured notes lion in new securities in 2009. $1.8 billion. Handleman Co. $0.16 $1.71 -90.6 due 2012 stemming from the oblig- But the markets haven’t re- While Pulte’s stock has seen Federal Screw Works $0.85 $10.35 -91.8 ations of various international sponded favorably, and Lear is some volatility, the company Visteon Corp. $0.35 $4.39 -92.0 subsidiaries to B3 from B2. by no means alone in its share outperformed the rest of the S&P Michigan Community Bancorp Ltd. $0.20 $3.05 -93.4 In a release, Moody’s said it price crash. American Axle & Man- 500 and an index of the five made the downgrades because of ufacturing Holdings Inc. shares homebuilders listed on the S&P Champion Enterprises Inc. $0.56 $9.42 -94.1 its concern over MSX’s decline in have shed $15.73 per share or 500. Lear Corp. $1.41 $27.66 -94.9 operating earnings, associated 84.5 percent since the end of 2007, But overall, 2008 was one of Borders Group Inc. $0.40 $10.65 -96.2 weakening in credit metrics, expo- when its stock was worth $18.62 the worst years on record for in- Clarkston Financial Corp. $0.25 $8.00 -96.9 sure to the automotive end-market per share. American Axle shares vestors. Noble International Ltd. $0.45 $16.31 -97.2 and concerns with the financial closed Dec. 31 at $2.89 per share. Sowerby said he has two part- Michigan Heritage Bancorp Inc. $0.13 $5.75 -97.7 condition of its largest customer, Of the 13 public auto suppliers ing words for 2008. Source: Bloomberg News. From a list of publicly owned companies with headquarters Ford Motor Co., which accounts for covered by Crain’s, only Auburn “Good riddance.” in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. nearly half of sales. Hills-based BorgWarner Inc. saw Ryan Beene: (313) 446-0315, — Sherri Begin Welch its stock price lose less than 70 [email protected] 20080105-NEWS--0005-NAT-CCI-CD_-- 12/31/2008 5:14 PM Page 1

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 5

Deficits, reserve Let Weight Watchers Help Your Employees Have a Healthy 2009 shortage hit the Be a Part of state budget NEW

LANSING — Lawmakers head crease is an example “of a revenue into 2009 facing dual budgetary response to Michigan’s budget Program challenges and state finances that deficits,” the tax won’t grow “at a have weakened in recent years, ac- rate sufficient to keep up with the cording to a new report from the growth in future state spending nonpartisan Citizens Re- pressures,” the council Better employee health leads to search Council of Michigan. said. a healthier bottom line - and The report highlights The report was to be Weight Watchers can help. elected officials’ task of Capitol posted today on the tackling both an ongoing, Briefings council’s Web site, structural imbalance be- www.crcmich.org. Our Workplace Wellness Initiative: tween spending pres- The council has pro- sures and revenue, and jected that without sub- s SAVESYOUMONEYONHEALTH the budgetary effects of stantive policy changes, care premiums the national recession. by fiscal 2017 structural s REDUCESABSENTEEISM State officials already deficits would grow to $6 expect the fiscal 2010 billion in the state’s gen- s INCREASESPRODUCTIVITY budget problem to be siz- eral fund and $3.6 billion able. For example, a Dec. Amy Lane in the SAF. 18 Senate Fiscal Agency re- port projects a $1.5 billion poten- Real estate transfer tax expands tial deficit for the year beginning Call: Sheryl Fellows, Oct. 1, including the carryover of a The Legislature has expanded Director of Corporate Communications & Marketing at 248.479.1356 $265.5 million projected deficit in Michigan’s state real estate transfer or e-mail: [email protected] the current year. Economists, ad- tax. ministration officials and fiscal Business entities and trusts that analysts will meet Friday at a rev- own real estate and that transfer a enue-estimating conference and controlling interest in their enti- 888-3-FLORINE | 888-3-florine.com ties will now pay the transfer tax if determine the latest projections ©2009 Weight Watchers International, Inc., owner of the WEIGHT WATCHERS registered trademarks. All rights reserved. the property they hold comprises for the current-year and fiscal 2010 90 percent or more of their assets’ budgets. fair market value. “It’s certainly not a secret that The change, sought by the Michi- the 2010 budget is going to be an- gan Department of Treasury and other challenging budget to put to- retroactive to Jan. 1, 2007, comes via gether,” said Leslee Fritz, director House Bill 6122, approved in the of communications in the state Legislature’s final day of 2008 ses- budget office. sion. A backdrop, however, is that the The bill in part targets the abili- state didn’t rebuild reserves that ty of limited-liability companies to would have helped it weather the transfer real estate they held by current recession, and the state’s selling L.L.C. membership inter- balance sheet and cash position ests. No tax was due because the ti- needs to be considered as policy- tle remained with the L.L.C. “Peo- makers look to fill both immediate ple were using L.L.C.s as a way of and structural budget holes, Citi- avoiding the tax, and this essen- zens Research says. tially has closed that loophole,” For example, the council points said Caleb Buhs, Treasury com- to year-end balances in the state’s munications representative. Trea- major funds — the general fund, sury did not have estimates on the School Aid Fund and budget stabi- bill’s revenue impact. lization fund — that have declined The bill is legislatively tied to over the past eight fiscal years, col- House Bill 5924, which also passed. lectively dropping some $3.3 billion The bill amends the Michigan from fiscal 2000 through fiscal 2007. Business Tax and excludes, from The school fund, or SAF, bor- rows from other state funds to pay the MBT’s gross-receipts base, immediate obligations because of commission payments that real-es- differences in the timing of tax col- tate brokers make to agents. lections and payments due schools. The borrowings are re- Comings & goings paid through the state’s issuance ■ of short-term general obligation Linda Parker, director of the bonds, but the “cash deficit high- Michigan Department of Civil Rights, lights a growing long-term weak- has been appointed to be a judge of ness in the SAF balance sheet,” the Wayne County Circuit Court. She Citizens Research says. replaces Cynthia Stephens, who was Fritz said “it shouldn’t be sur- appointed to the Michigan Court of Ap- prising to anybody that after eight peals. Parker’s replacement hasn’t years of auto restructuring and job been named. loss and economic challenge that ■ Jeremy Stephens, regional hu- the budget is in a tight spot and man-resources manager in Ply- that the state’s overall financial mouth for Bristol, Conn.-based health is not as strong as we would Barnes Group Inc., has been named like it to be.” state personnel director. He re- The report does cite improve- places acting state personnel di- ment in the state’s cash reserves rector Janet McClelland, chief because of the income-tax increase deputy of the Michigan Civil Service and Michigan Business Tax sur- Commission. charge approved in 2007. Amy Lane: (517) 371-5355, But while the income-tax in- [email protected]. 20080105-NEWS--0006,0007-NAT-CCI-CD_-- 12/31/20085:15PMPage1 I the trend forSoutheastMichiganat October bequest. pledged another$22millionin an gift of$22millionin2007and found theinstituteatUMwitha based chairman ofBloomfieldHills- bryos withinfederalguidelines. stem-cell researchondonatedem- took effectDec.19andallowsfor the passageofProposal2,which stem-cell research,inthewakeof gin collectingdonatedembryosfor also establishingprotocolstobe- man MedicalResearchInstitute close inJune. campus of25buildings. in January2007itwasclosingits years. Thedrugmakerannounced jobs atthesiteovernext10 move willleadtoabout2,000new tal cleanup.Colemanhassaidthe by theuniversityforenvironmen- million, with$12millionsetaside Inc. million-square-foot former nounced itwouldbuythe2- lapsed. vember afterfinancialmarketscol- vestments SeptemberthroughNo- school lostnearly$2billionofitsin- was roughly$7billion,butthe nance Committee ing practicestothe were askedtoexplaintheirspend- ments of$500millionormorethat versities nationwidewithendow- was among136collegesanduni- March, Coleman’sadministration school aswell.InFebruaryand their shareofcontroversyforthe Ann Arbor. campuswide buildingcampaignin million orsotowarda$500 to academicprogramsand$465 student aidprograms,$1.33billion million forscholarshipsandother born andFlint,includes$519 UM campusesinAnnArbor,Dear- ever raisedbyapublicuniversity. in 2005andwasthelargestamount University ofCaliforniaatLosAngeles of the$3.05billionraisedby launched in2000.Thatputitahead gan Differencecapitalcampaign, record $3.12billionintheMichi- President MarySueColeman. Page 6 Taubman, founderandformer The university’s The acquisitionisexpectedto In mid-Decembertheschoolan- The UMendowmentatthattime But largecashreservesbrought The campaigncoversallthree In November,UMreacheda University ofMichigan campus inAnnArborfor$108 defying thelargereconomic ry, earningdistinctionsand t wasayearofmakinghisto- Taubman CentersInc . Ann Arbor Michigan University of President, COLEMAN MARY SUE — A. AlfredTaub- U.S. SenateFi- Chad Halcom under . , helped Pfizer is VST S WV tained by UAW wasmade. competitive agreementwiththe plants tosupportfutureworkifa invest upto$200millioninthose in itsoriginalU.S.locationsand the companywantedtokeepwork General MotorsCorp. truck andSUVproductionat30 2008 aloneandcrippledpickup during thefirsttwoquartersof more than$400millioninlostsales ment incentivesandplantclosings. through voluntarybuyouts,retire- salaried workersintheU.S. hourly workersand300to350 workforce bymorethan2,100 American AxletocutitsUAW issue wasresolved. bonuses for2007untilthecontract The companyhadputaholdon leadership duringtheUAWtalks. $1.5 million2007salaryforhis million bonusinadditiontohis American AxlepaidDauchan$8.5 change Commission filed withthe company $300million. tory, andwasexpectedtosavethe $45 anhour,dependingonthefac- average hourlylaborrateto$30 agreement broughtthecompany’s bargaining agreementMay22.The UAW workersratifiedacollective Dauch didn’tbudge. to preserveworkers’pay,but er U.S.-basedsuppliers. $20- to$30-per-houraverageofoth- costs werefaroutoflinewiththe competitive. Hearguedhislabor and benefits,tobecomecost- per hour,includingwages the company’slaborcostsof$73.50 try-labor relationsclash. center oftheyear’sbiggestindus- Axle CEORichardDauchintothe day strikethatthrustAmerican in theU.S.wenttopicketlines. Manufacturing HoldingsInc. workers atfive post atAxleinonetothreeyears. planned tostepdownfromthe top overseas bytheendof2009. million intheU.S.and$352 company plannedtoinvest$103.3 tion But internalAxledocumentsob- During thestrike,Dauchsaid The strikecostAmericanAxle The agreementpavedthewayfor After theagreement,aform8-k A majorityofAmericanAxle’s The UAWfoughttoothandnail Dauch saidhewantedtohalve It wasthestartofabitter,87- In September,Dauchsaidhe Automotive News Auto Worker night Feb.25,3,650 hen theclockstruckmid- Crain’ U.S. SecuritiesandEx- American Axle& Detroit Holdings Inc. Manufacturing Axle & CEO, American DAUCH RICHARD s sisterpublica- Newsmakers -represented plants. 2008 — RyanBeene June 27said showed the plants United town University was 18,andservedfortwoyears. U.S. ArmyinOct.1944whenhe 1938 to1943,andthenjoinedthe side. the districtwasonDetroit’swest mocrat firstelectedin1932when father, apro-labor,NewDealDe- the seatvacatedbydeathofhis age 29inaspecialelectiontofill County. Arbor andsouthintoMonroe area fromDearbornwesttoAnn mography QualityStandardsAct. surance Program,andtheMam- Species Act,Children’sHealthIn- the CleanAirAct,Endangered ments, Dingelllistshissupportof of billsinCongress. times controllednearly40percent the panel’scloutsothatitsome- tions subcommittee.Hesoongrew and ofitsoversightinvestiga- the dent at until 1955. sistant WayneCountyprosecutor Law School chairman ofthefullcommittee gy andpowersubcommittee. and CommerceCommittee’sener- named chairmanoftheEnergy since 1975whenhewasfirst the voicehe’dhonedinCongress suring hecouldcontinuetouse Dingell “chairmanemeritus,”en- the Democratsdecidedtomake tougher environmentalstandards. dustry, includingvotesagainst his strongsupportoftheautoin- House Democraticcolleagueswith mocrat. Waxman, aliberalCaliforniaDe- merce Committee manship ofthe ousted fromhislongtimechair- in theU.S.House. will setanewrecordforlongevity term. Ifhecompleteshisterm,it of Representatives have served55yearsinthe 82 hewasre-elected.Dingellwill bad newsin2008. Dingell graduatedfrom Dingell wasaHousepagefrom He wonhisHouseseatin1955at Dingell’s districtincludesthe His wife,Debbie,isavicepresi- C Among hisproudestachieve- Democratic NationalCommittee Six yearslater,hebecame Recanting slightlyinDecember, Dingell hassometimesirritated The badnewswasDingell The goodnewswasthatatage RAIN General MotorsCorp some goodnewsand gell, D-Dearborn,made eteran U.S.Rep.JohnDin- ’ in 1952,andwasanas- S D ETROIT in 1949, Energy andCom- — Dearborn representative Democratic U.S. DINGELL JOHN by Rep.Henry at theendofthis Robert Ankeny B USINESS Georgetown George- . andon House . Washington Boulevard. degraded toaboarded-upmesson and musicianscongregatedhad great hotelwhereathletes,actors bol ofDetroit’sdownfall.Aonce- something inspiringtotalkabout. Ferchill’s triumphgaveDetroit downfalls andpoliticalscandals, told beating upthecityofDetroit,”he region. many residentsandleadersinthe the negativitythatcomesfrom leaders forthecity,railingagainst come partofthegroupcheer- Since becominginvolved,he’sbe- drew himtoinvestinthecity. of ComericaParkandFordField that startedwiththeconstruction Garden Inn Detroit, thefirstbeing chill’s secondhotelconquestin jects. and Clevelandwithsimilarpro- ing successinBuffalo,Pittsburgh restoring historicbuildings,find- tween publicandprivateentities. cluding 17layersoffinancingbe- ing twoyearstonegotiateandin- transactions inU.S.history,tak- most complicatedrealestate pen. no smallmeasuretomakeithap- the word“force,”becauseitwas from thebeginning—andstress driving forcebehindtheproject based the storyofcity’srebirth. for analtogetherdifferentstory— the buildinghasbecomeasymbol lounges andbreathtakinglobby, With itsplushballrooms,swanky rooms togreatfanfarein2008. Cadillac The $180million Enter JohnFerchill. In ayearfilledwithfinancial “The cityofDetroithastostop Ferchill hassaidthevibrancy The BookCadillacwasalsoFer- Ferchill hasmadeacareerof The projectstandsasoneofthe Ferchill, CEOoftheCleveland- Crain’s Ferchill Group building hadbecomeasym- 1984, theBookCadillac ince itwasshutteredin opened its455upscale on Gratiot. in a2006interview. Chicago Ferchill Group CEO, The FERCHILL JOHN — DanielDuggan , hasbeenthe Westin Book Hilton and group of Woodward Ave.inDetroitanda $10.5 billionlight-railsystemon of businessleaderspushingfora stead. for spacetoleaseinDetroit,in- layed andthatGilbertwaslooking the buildinglikelywouldbede- the storyearlyinmonththat of support ofthe$17.4billionbailout chos wholobbiedCongressfor headquarters, but town locationshewantedforhis in Novemberwhichoftwodown- state’s pensionsystem. lion investmentfundsfromthe program, madeupoftwo$150mil- advice tothenew would serveonacounciltolend Granholm announcedthatGilbert cember. loans, asuitQuickensettledinDe- million inallegedfraudulent fused tobuybackmorethan$4 Bank N.A. by SouthDakota-based the industry’stroubles. net lenderwasnotimmunefrom homes. paid andkeeppeopleintheir pitching hisplantogetmortgages the roundsofnationalmedia, asolutionthatworks.com andmade created aWebsitecalledwww. Livonia-based them toinvestors. bundling mortgagesandselling lending industry,whichinvolves dation ofmuchthemortgage- rocketing andthreatenedthefoun- 2008 thatsentforeclosuressky- the wakeofcreditcrunch lation. ternet blogging,gossipandspecu- new buildingandmuchmoreIn- many headlinesashisproposed dio andTV,creatingnearlyas Hall, hislongtimepitchmanonra- In December,heterminatedDavid 4,000 employeesfromthesuburbs. in downtownDetroitandrelocate sion tobuildanewheadquarters nounced along-anticipateddeci- L.L.C. Gilbert alsowaspartofagroup Gilbert wassupposedtodecide In July,MichiganGov.Jennifer In June,thecompanywassued And thecountry’slargestInter- Gilbert, thechairmanof However, thoseeventspaledin In Novemberthatyear,hean- General MotorsCorp. Detroit RenaissanceInc. low. act forDanGilberttofol- he endof2007wasahard Detroit RegionalChamber , whichallegedithadre- Quicken LoansInc. Livonia Inc. Quicken Loans Chairman, GILBERT DAN January 5,2009 — TomHenderson Invest Michigan! Crain’s and Wells Fargo broke Chrysler hon- , 20080105-NEWS--0006,0007-NAT-CCI-CD_-- 12/31/2008 5:15 PM Page 2

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 7 rsof the Year

JOHN DANIEL HERTEL LOEPP KEN CEO, Regional KWAME CEO, Blue MATZICK Transportation Cross Blue CEO, William L. BROOKS Coordinating KILPATRICK Shield of Beaumont PATTERSON Council Former mayor Michigan Hospitals Oakland County Detroit City of Detroit Detroit Royal Oak Executive

hen John Hertel looks he year 2008 got off to a s a former Lansing insider, en Matzick began 2008 with akland County Executive L. back over his long and promising start for De- Daniel Loepp, now CEO of a solid plan for William Brooks Patterson is a WTAKOvaried career — chair- troit’s then-mayor Kwame Blue Cross Blue Shield of Beaumont Hospitals. perennial firebrand, both man of two different county Kilpatrick. Michigan, must have been disap- The plan was to build a $160 mil- on regional collaboration issues boards, state senator, fairgrounds He was beginning the third year pointed that a handful of Republi- lion proton-beam therapy center and for challenging the economic boss, professor, horse breeder — of his second term and was ready can state legislators stymied Blue to treat difficult cancers, to em- status quo. Last year offered him among the highlights will likely be to announce a $150 million enter- Cross’ 14-month effort to pass two bark on a $204 million building several chances to speak out, and his current behind-the-scenes role tainment, retail and apartment de- bills to reform the individual project to expand its Royal Oak the region listened. as regional transit czar. velopment for a long-vacant down- health insurance market. and Troy hospitals, and for Beau- Patterson, 69, survived a 2008 re- Hertel got Oakland County Ex- town site. After a session that began Dec. mont to use its long-standing AA election challenge to his fifth term ecutive L. Brooks Patterson to not Now, that project is in limbo 18 and lasted into the wee hours of bond rating to borrow another from Southfield Mayor Brenda only get along with his Wayne and Kilpatrick has resigned … and Dec. 19, legislators failed to come $900 million to further its regional Lawrence even as Democrats swept County counterpart and verbal is in jail. up with a compromise on a contro- reach for patients. into other county offices, longtime sparring partner Robert Ficano, Though his first six years in of- versial set of bills to reform the in- Financial projections for Beau- Treasurer Pat Dohany lost his of- but he got them to agree on a $10.5 fice had ups and downs, Kilpatrick dividual market. mont also were rosy, despite the fice to challenger Andy Meisner, billion, 25-year regional mass had weathered most storms, in- The two bills, substitute House need to turn around a recently and Jessica Cooper became the first transit plan. cluding a tough re-election cam- Bills 5282 and 5283, died. Legisla- purchased third hospital in Democratic prosecutor since 1972. Patterson, not known as a cham- paign in 2005 where he had to tive leaders promised to address Grosse Pointe. Patterson even flirted with losing pion of regionalism, along with Fi- overcome reports of corruption, what many consider to be a bro- Matzick and Beaumont were his GOP majority on the county’s cano, the Detroit mayor and Ma- favoritism and nepotism. ken individual market in the 2009 riding high in the saddle. The 53- board of commissioners, until late- comb County commission His administration had worked session, which begins this month. year-old hospital had been one of night election returns restored the chairman, are Hertel’s bosses in out development agreements for It was a bitter defeat for Loepp, the region’s most profitable health 13-12 split. his position as CEO of the Regional Detroit’s permanent casinos, shep- Blue Cross’ CEO since July 2005, care institutions for more than 30 His fifth term secured, Patter- Transportation Coordinating Council’s herded a successful Super Bowl XL when he succeeded Richard Whit- years. son will likely be a pivotal player Detroit Regional Mass Transit ef- in 2006, helped bring back the mer, who retired after leading the But 2008 ended badly, as the on the long-contentious plans for fort. Grand Prix race on Belle Isle and company for 18 years. economy nosedived and bond mar- Cobo Center in Detroit. The Big 4, as they are known, negotiated contract and budget Earlier in his career, Loepp kets tightened. The Legislature in December agreed Dec. 8 on the plan — a mix- changes to work toward balancing served as chief of staff for Michi- In August, Beaumont’s bonds passed a bill to place Cobo’s renova- ture of improved and expanded city budgets. gan Speaker of the House Curtis were downgraded to A as rating tion and expansion under a five- bus service, light-rail and com- Then came Jan. 24, when the De- Hertel and director of communica- agencies questioned the hospital’s member board that must govern by muter trains over 406 miles in the troit Free Press published stories tion for Michigan Attorney Gener- weak balance sheet and its contin- unanimous vote, and Patterson has three counties — and Hertel is on its examination of more than al Frank Kelley. ued drop in profit margins. already said his appointee to the now working on a report to them 14,000 text messages Kilpatrick Detroit native and Wayne State And in a November news con- panel will resist or delay the expan- that will suggest a governance had exchanged with then-Chief of University-educated Loepp, who ference, Matzick did something no sion portion until the domestic au- plan and likely funding options. Staff Christine Beatty. went to Blue Cross in 2000 as vice Beaumont executive had ever tomotive industry recovers. Hertel also spent months shep- Those messages appeared to president of governmental affairs, done. During the fall, the county De- herding a privately funded ven- show that both Kilpatrick and passionately believes that Blue Matzick, who joined Beaumont partment of Economic Develop- ture to deploy a 3.4 mile light rail Beatty had lied under oath in de- Cross stands alone against a herd in 1969 and rose through the ranks ment and Community Affairs also loop with 12 stops along the positions and at a trial in the of hungry, for-profit health insur- to become CEO in 2005, announced made some of the initial calls on busiest stretch of Woodward Av- whistleblower lawsuit brought ers. the layoff of 165 employees and a developing a regional response enue in Detroit. against the city by fired Detroit He charges these insurers are $60 million cost-cutting and turn- strategy among government offi- The line is one of the key ele- police officers. “cherry-picking” healthy people around plan that could erase the cials, to handle a possible merger ments of the wider regional plan, The perjuries appeared to in- for coverage while sending the hospital’s first-ever projected or bankruptcy among the Detroit 3 but was developed independently clude not only denials about ac- sickest and costliest people to Blue deficit. automakers. Later, those strategy with Hertel as a sort of ringmaster. tions and decisions leading to de- Cross. As a result, he says, Blue Matzick also agreed to take a 10 talks came under state control. In secretive monthly meetings, motions and firings of police Cross is losing millions of dollars. percent pay cut along with other That office also continued its Hertel got the some of the city’s officers, but also about their own Loepp also has argued that top executives and employed doc- “101”-titled primer seminars with most notable billionaires, founda- sexual relationship. Michigan needs a wide range of tors. auto suppliers and tool-and-die tions, corporations and other in- Kilpatrick and Beatty first de- consumer protections that will Without the executive pay cuts, companies looking to diversify. stitutions to reach accord on the clared their innocence; both later benefit thousands of individuals, Matzick said, another 225 workers The initial “Alternative Energy $103 million line — where it would pleaded guilty. Kilpatrick started especially the sick, women and the would have been laid off. 101” conference in November 2007 run, the stops, how much it would serving his 120-day sentence on elderly. He also believes Blue While the building project in gave rise to conferences on med- cost, etc. Oct. 28, and Beatty was scheduled Cross needs regulatory reform to Royal Oak and Troy are going full ical devices and Michigan’s new And Hertel kept the plan quiet to begin hers on Jan. 5. shorten the time it now takes for speed ahead, Matzick also an- film incentives during 2008. until it was unveiled by Crain’s in The bright, charismatic young proposed rate increases to take ef- nounced the proton-beam center In April his Emerging Sectors February. mayor — who previously had dis- fect. groundbreaking would be delayed program, which aims to attract or About 75 percent of the funding tinguished himself in the state Commercial carriers and other until March. expand businesses in 10 key areas needed to build the Woodward line Legislature as House Democratic nonprofit health insurers, such as If the economy worsens and the of economic growth, reached has been committed, Hertel has leader — not only resigned his city Health Alliance Plan or Priority banks decline to lend money to roughly $1.2 billion by year’s end said, and the state Legislature post but also forfeited his license Health, do not have to go through a Beaumont and its partner, Bloom- for total investment by companies passed the necessary legislation to to practice law in Michigan for at public process as the Blues does to ington, Ind.-based Procure Treat- developing in Oakland County. set up the line’s nonprofit over- least five years. increase rates. ment Centers, Matzick said the pro- In May he called upon local gov- sight corporation and provided op- His sentence also includes a Look for the Blues to take anoth- ton-beam center could be put on ernment and the private sector to erational funding. five-year probation term during er crack at the legislative process indefinite hold. He did not rule out offer a four-day, 40-hour work- Hertel is now working to merge which he cannot run for public of- this year. further layoffs. week as a means of curbing em- the plan with a separate $374.5 mil- fice. — Jay Greene “Hospitals are no longer reces- ployees’ soaring gas costs. lion Woodward light rail plan de- — Robert Ankeny sion-proof,” Matzick said. By the fourth quarter, 544 coun- veloped by the Detroit Department — Jay Greene ty employees had moved to the of Transportation. That’s expected to four-day week, and other employ- be finalized early this year. ers joined the effort. — Bill Shea — Chad Halcom 20080105-NEWS--0008-NAT-CCI-CD_-- 12/31/2008 4:58 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 5, 2009 OPINION A few resolutions for a tough new year

ew beginnings can happen at any time, but the begin- ning of each year is, of course, the traditional time N for resolving to do better in the future. Here are some resolutions we wish some of those around us would make: For the newly created Cobo governing board: Play nicely. Although creation of the five-member regional board to oversee operations is a good idea, granting each indi- vidual member veto power is less so. The system is more likely to result in political blackmail and grandstanding among members than a good decision-making process. We need more collaboration, not less. For the state of Michigan: Lose weight – in the budget, that is. The state has operated in fiscal crisis mode for most of Gov. Jennifer Granholm’s six years in office. Michigan has a structural budget problem that will only worsen in the coming year now that our one-state recession has gone national. Both the governor and the Legislature need to get a grip and do their jobs. Don’t tinker, make real change. For Kwame Kilpatrick: Learn from the past, make amends and move on. What will the former mayor do when he emerges from prison early this year? Kilpatrick is a man of many gifts, and we hope he spends LETTERS time putting his hubris in check, apologizing to those he’s wronged and learning the art of doing good while doing well. A Kwame Kilpatrick who learns to be a better man would still Papers forgot the customers have a lot to contribute. Editor: In the meantime, I’m sure we’ll For City Councilwoman Monica Conyers: Crain’s Detroit Business I predict that the online experi- be reading next year how decreas- Read All I Really Need to Know I Learned in Kindergarten. welcomes letters to the editor. Conyers’ 2008 included describing her $81,000 compensation as ment of the Detroit Media Partner- All letters will be considered for es in revenue will cause the papers ship will not succeed and will ulti- to downsize their reporting staff “part-time” pay, referring to Ken Cockrel Jr. as “Shrek” and publication, provided they are mately spell the death of The signed and do not defame and start the downward spiral to- throwing a tantrum about hotel arrangements in Denver that Detroit News. (“Insiders: Shift to individuals or organizations. ward the closing of one of the pa- required police intervention. Clearly, a refresher course in online publishing by Detroit pa- Letters may be edited for length pers. grown-up behavior is in order. pers risky,” Dec. 22). and clarity. Roman Nestorowicz For the Detroit Lions: While the plan is bold and has Write: Editor, Crain’s Detroit Warren Restore the roar? Resolve to … win? OK, we’re stuck. Good some merits as many younger peo- Business, 1155 Gratiot Ave., ple do rely more on the Internet for Detroit, MI 48207-2997. A horrific blunder luck with the reorganization thing, though. Go Wings! information, this plan totally ig- E-mail: [email protected] Editor: For all of us in Southeast Michigan: nores the older and more loyal The proposal to stop seven-day Be of good cheer. 2008 was hard; 2009 may be no better. It’s base of readers. home delivery of The News and kept current subscribers happy. easy to feel helpless in the face of forces we can’t control, but The irony is there could have Free Press is another huge nail in But now with a hard transition, the fact is all of us have things we can control — it may be been a better plan to make this Detroit’s coffin. the papers stand to lose tens of small pieces of the economy or simply our reaction to the econ- transition. If the papers wanted to For years, metro Detroit has thousands of current readers, been the largest such area in the omy. If we focus, work hard, learn hard and support each oth- transition to an online product, they should have offered and pro- drastically reducing subscription world without a subway. Now we er, our region and our state can come out of these hard times moted an online offering at a dis- revenue. And when circulation can also have the distinction of be- strong and ready to capitalize on better times. Crain’s resolu- count to try to attract the younger numbers drop, ad rates will need ing the largest without seven-day tion is to help by doing the above to provide the news and in- readers they want. They could to drop. This will happen home delivery of any local paper. formation you need. have kept home delivery and in- overnight as soon as the transition A horrific blunder. Almost sui- Happy New Year to one and all! creased the price. This would have occurs. See Letters, Page 9

KEITH CRAIN: It’s time for New Year’s resolutions Most of us will be making a lot of country. liquor and tobacco, are how to do this for decades. Now troit this year while we go through the same resolutions this year that All of us are going to going to see lower con- our governments are going to have the expensive process of electing a we might have done in years gone have to understand that sumption and lower re- to do the same thing. temporary mayor for a few months by. for the foreseeable fu- ceipts. The Detroit casi- As difficult as it seems, govern- and a new mayor for four years. We’re going to quit smoking or ture, we’re going to nos are looking at lower ment is going to have to lower its Hopefully, the residents of Detroit lose weight or exercise more in the have less. revenue and less money spending by 10 to 20 percent. Just will understand how important New Year. All are good resolutions Our salaries are lower to the city, county and like the rest of us. It’s time for all of these elections are to our commu- but it’s time for us to understand and fewer meaning that state. The lottery is go- our elected officials to understand nity and we’ll see some turnout that our community might have to we’re going to have less ing to have smaller re- that government doesn’t automati- that is higher than the projected 15 start making some very important income tax. Our proper- ceipts. All forms of taxes cally get to spend more every year. percent. Citizens must understand resolutions as well. ty, whether it’s residen- are going to be less this In a recession, they have to that informed voting is a privilege We’re in the midst of a very tial or commercial, has a year. spend less, something that most and should act accordingly. healthy recession. Our community lower value and there- As individuals we’re politicians don’t know how to do. It’s going to be a tough year for has been in one for the last year or fore should have lower going to have less and And we’re going to have four most folks. Governments must act so but now it’s spread to the entire property taxes. Even the sin taxes, spend less. Families have known very important elections in De- that way as well. 20080105-NEWS--0009-NAT-CCI-CD_-- 12/31/2008 11:51 AM Page 1

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: We resolve to serve you better in 2009

This is the week for resolutions. making content easier [email protected] some nagging problems Michigan Business began publishing, we be- With so much economic uncer- to find. Other changes: faces and some ways to approach lieve our paper has helped to build tainty, our editors spent a lot of Jobs are definitely a Small business con- them. a community in Southeast Michi- time late last year looking at how big issue, so later this tinues to be a core cov- Jobs/Economy, which debuts gan. This year is going to be chal- we cover business news and what month we’ll debut a erage area for us. Feb. 9, will focus on the local econ- lenging for many of us in that com- we can do better this year to serve weekly page called About half our readers omy, with a specific focus on grow- munity. We hope our changes our readers, in print and online. If CareerWorks. If you’re hail from companies ing segments. Career Quarterly bring “news you can use” to you we’ve missed the mark or you looking for work, think- with fewer than 100 em- first appears on March 9 and will and your business. And now, with have a better idea, please take a ing about a transition ployees. Our expanded focus on finding jobs and career online tools, you can be part of the minute to write us at or looking for talent, Small Business Month- development at all stages. community in new ways and talk [email protected]. this page will be for ly section will run the Online, we’re adding more blogs to us and other readers. This week, you’ll see a few you. We’re especially third Monday of each by reporters and editors on our Mary Kramer is publisher of changes on Page 1 and Page 3, our looking for examples of month. staff. Beginning mid-January, the Crain's Detroit Business. Catch her primary news pages, intended to people who have made We are adding quar- new features on our Web site will take on business news at 6:50 a.m. make it easier for you to find sto- successful career transitions, so if terly sections built around special make it easier for readers to report Mondays on the Paul W. Smith show ries inside the paper. We will be you’ve done that in the past couple topical themes: Policy, Jobs/Econ- news of their own and comment on on WJR AM 760 and in her blog at tweaking the design of our Web of years and are willing to talk to a omy and Career. The first Policy our blogs and stories. www.crainsdetroit.com/kramer. site in 2009 for the same reason: reporter, please send us a note at section runs Jan. 12 with a look at Since 1985, when Crain’s Detroit E-mail her at [email protected].

LETTERS CONTINUED ■ From Page 8 cidal. And just at the wrong time. This is one subscriber who will immediately cancel the first week- day I miss a paper. Richard Rosenbaum Bloomfield Hills Schools must retool Editor: Keith Crain is correct in his Dec. 22 column, “Let’s get the best that money can buy,” that the next generation or two of Detroit citi- zens are now enrolled in Detroit Public Schools. Detroit desperate- ly needs a great public school sys- tem to harness the city’s creativi- ty, diversity and boundless opportunity. As a DPS teacher and co-founder of Detroit Children First, I would like to suggest a different strategy, a 21st century strategy of bringing education to the children in our city. Detroit Public Schools has an opportunity to transfer itself from a hierarchical, centralized, organi- zation functioning back in the ’50s into a decentralized, service-based organization that relentlessly pri- oritizes the requirements of its Who is Rehmann? $0LFKLJDQEDVHGÀUPRI&3$VEXVLQHVV students. FRQVXOWDQWVDQGÀQDQFLDODGYLVRUVIRFXVHGRQ\RXUVXFFHVV Detroit Public Schools must hy- 2XUSURIHVVLRQDOVLQ6RXWKHDVW0LFKLJDQVHUYHFOLHQWV brid itself just as our auto indus- DFURVVDPXOWLWXGHRISUDFWLFHDUHDVIURPSULYDWHO\KHOG tries have come to discover about themselves. Both entities clattered EXVLQHVVHVWRSXEOLFO\WUDGHGFRPSDQLHVIURPLQGLYLGXDOV along for decades, repeating past WRPXOWLQDWLRQDORUJDQL]DWLRQV practices that worked well for them once, but they never retooled What makes us different?2XUSURDFWLYHFOLHQWIRFXVHG for the future. Foreign companies DSSURDFKWRGHOLYHULQJEXVLQHVVZLVGRP:LWKRQHFDOO modeled for Detroit other options One team. WR5HKPDQQ\RX·OOJDLQDFFHVVWRDKDQGSLFNHGWHDPRI in auto engineering. SURIHVVLRQDOVZLWKWKHULJKWH[SHUWLVHWRDGGUHVV\RXU Unionized urban public school WRSSULRULWLHV academies are the educational United States hybrids moving chil- One focus.

Page 10 CRAIN’S DETROIT BUSINESS January 5, 2009

BUSINESS DIARY CALENDAR CALL FOR NOMINATIONS at Fraser Villa in Fraser; and general quotient determines the green index of Council of Michigan. Butzel Long, De- contractor for interior build-out of a roof. TUESDAY Detroit Young Professionals has troit. Members: $25 reception only, $100 Trinity Home Health Services corpo- reception and Auto Show preview. Oth- launched its inaugural Vanguard JAN. 6 rate offices in Livonia. ers: $35 reception only, $110 reception Awards, a peer recognition program to STARTUPS Excellence Without Exhaustion: Per- and Auto Show preview. RSVPs re- honor young trailblazers making a Natural Kids, Ypsilanti, is a new educa- sonal Growth & Energy Management. quested by Jan. 8. Business attire. Con- positive difference in Detroit and EXPANSIONS tion, advocacy and consulting business 8-10:30 a.m. Inforum. Beth Miakinin, tact: (313) 570-1632. shaping the renaissance of our region. J.R. Thompson Co., Farmington Hills, aimed at training schools and business- owner and president, E. Miakinin As- The group is seeking 10 honorees be- has opened an office in Marina del Rey, es how to create a more eco-friendly op- sociates L.L.C. The Community tween ages 20 and 40 who are to be Calif. erating environment. Natural Kids was House, Birmingham. $45 members, The State of the Auto Industry, 2009. honored Feb. 21. Deadline: Feb. 1. Storage Pros Self Storage, Farming- founded by Donna Doleman Lewis, a $65 others. Contact: (877) 633-3500. Noon Jan. 15. Adcraft Club of Detroit. Nominations are being taken at ton Hills, has opened Storage Pros health care and marketing executive. David Cole, chairman of the Center for www.detroityoungprofessionals.org/ Southfield, a 70,000-square-foot Telephone: (734) 883-9063. Web site: Automotive Research; and John McEl- vanguards. self-storage facility, at 28223 Tele- www.natural-kids.com. THURSDAY roy, host of “Autoline Detroit.” San Michigan Defense Trial Counsel, a Marino Club, Troy. $32 members, $27 graph Road in Southfield. Web sites: NewNorth L.L.C., Brighton, hopes to JAN. 8 Grand Ledge association of attorneys, www.thestorageprosonline.com and make its first acquisition in April for junior members (under age 25), $15 students with ID, $37 others. Contact: is seeking nominations of Michigan www.storageop.com. what CEO Jeff Steiner hopes will be a Pre-Business Research. 9 a.m.-12:30 (313) 872-7850. civil defense attorneys for its 2009 Ex- Palm Palace L.L.C. has opened at 2370 sustainable, Michigan-based turn- p.m. Oakland County Business Center. cellence in Defense Award. Deadline: Carpenter Road in Ann Arbor. The around company generating $500 mil- Presented by The Entrepreneur’s Jan. 14. Nomination packets are avail- Dearborn-headquartered Mediter- lion to $750 million in annual revenue Source, Oakland County’s Business 2009 North American International able at www.mdtc.org. ranean restaurant company acquired in five years. Steiner, a former vice Center, Market Research Department, Auto Show Luncheon. 11:30 a.m.-1:30 Charlie’s LaShish, an independent president at Johnson Controls Inc., and research librarian. Oakland Coun- p.m. Jan. 15. Celebrating the opening CONTRACTS restaurant owned by Charlie Bazzi. and partners are targeting manufac- ty Executive Office Building, Water- of the auto show. Motor City Casino, CareTech Solutions Inc., a Troy-based Web site: www.palmpalace.com. turing companies that generate $50 ford Township. Free. Pre-registration Detroit. Contact: (313) 963-8547. information technology and Web ser- million to $250 million in annual rev- required. Contact: (248) 858-0783. vices company serving hospitals and JOINT AGREEMENTS enue for acquisition. Positioning You and Your Business in health care systems, has signed a five- Axis Music Academy, Southfield, Can- COMING EVENTS This New Economy. 11:45 a.m.-1 p.m. year renewal agreement to continue ton Township and Macomb Township, OTHER Jan. 21. National Association of Ca- providing The Detroit Institute for is offering free music lessons to Motor City Connect Lunch at Vinology. reer Women. Children, Detroit, with information- Budco, Highland Park, has received 11 a.m.-1 p.m. Jan. 13. Motor City Con- new students who purchase music notice of recommendation for contin- Michael Finney, technology outsourcing services. nect. Top professionals who gather president and equipment at Guitar Center locations ued ISO 9001:2000 certification in com- ComSpec International Inc., a Bing- both online and offline to meet, under- CEO, Ann Arbor in Southfield, Allen Park, Roseville pliance with international quality ham Farms information-technology and Canton Township. Axis Music stand and connect with business lead- Spark. Weber’s standards. company, was awarded a contract Academy teaches students more than ers. Vinology, Ann Arbor. $20. Con- Inn, Ann Arbor. with Oak Hills Christian College, 10 instruments. Web site: www. NSF International Strategic Registra- tact: http://motorcityconnect.com. $20. Contact: (734) Benidji, Minn. axismusic.com. tions, Ann Arbor, has obtained Green- 439-2904. The Hocking Media Group, Troy, is to house Gas accreditation from the Amer- 2009 North American International ican National Standards Institute. handle all media planning and buying LITERATURE Auto Show Breakfast-Recession De- Recovery Starts for Belle Tire, an Allen Park-based tire Potestivo & Associates P.C., Bank of Ann Arbor and the Ann Arbor fense: Smart Vehicle Choices. 7-9 a.m. Here Career Re- and automotive service company. Rochester Hills, a legal services Art Center have announced the re- Jan. 14. Inforum, BASF, WWJ 950 AM, ception and Work- provider to the default-servicing in- Design Hub Inc., Saline, has written lease of a 2009 wall calendar featuring others. Gary Allgeier, director of finan- shop. 5-9 p.m. Jan. dustry, announces the firm’s appoint- Finney and designed new sales literature for a collection of art from 12 area artists cial services, Suburban Collection; 22. Detroit Renais- ment as the Lender Processing Ser- water treatment and bottled water who have exhibited at the center. Sue Cischke, se- sance, the Michigan Chamber of Com- company American Aqua Inc., Saline. vices’ Attorney Roundtable nior vice presi- merce, the Detroit Regional Chamber, representative for the American Legal Brogan & Partners Convergence Mar- MOVES dent, sustainabili- others. Career networking reception keting, Birmingham, has been named & Financial Network for 2009. ty, environment & for displaced workers with college de- agency of record for Covenant Health Steve and Janet Stockton and The Smart I.T. Services Inc., Sterling safety engineer- grees, not limited only to Lawrence Care of Saginaw. Brogan will provide Stockton Real Estate Group Inc. from Heights, became the first managed ing, Ford Motor Tech students and alumni. Designed to multimedia communications for ReMax Classic Novi to Keller Williams services provider in Michigan to be Co.; Rebecca provide employers and job-seekers a branding and service promotion for Commerce, 2900 Union Lake Road, accredited under the Managed Ser- Lindland, director face-to-face experience in a profession- the health care organization. Suite 100, Commerce Township. Tele- vices Accreditation Program by the of industry re- al, personal environment. Lawrence MSP Alliance. Pure Visibility, an Internet marketing phone: (248) 366-7200. search, Global In- Technological University, Southfield. firm based in Ann Arbor, is now an sights; Elizabeth Free. Contact: (248) 204-4100, or Urchin Software authorized consul- NEW SERVICES Lowery, vice pres- www.ltu.edu/recovery. DIARY GUIDELINES Cischke tant, allowing it to sell and support Dawda, Mann, Mulcahy & Sadler plc, a ident, environ- Urchin Software from Google. Bloomfield Hills law firm which ad- Send news releases for Business ment, energy and safety policy, Gener- CALENDAR GUIDELINES The Northwest Group, a Wixom design vises national and international auto- Diary to Joanne Scharich, Crain’s al Motors Corp: and Matt Roush, and advertising agency, has been cho- motive and manufacturing compa- Detroit Business, 1155 Gratiot technology editor, Great Lakes IT Re- More Calendar items can be found sen as agency of record by Rowe Inc., nies, has formed a distressed supplier Ave., Detroit, MI 48207-2997 or port, WWJ 950 AM. Detroit Marriott at on the Web at www.crainsdetroit. the Renaissance Center. $45 members, a Flint-based civil engineering compa- and customer group. Telephone: (248) send e-mail to jscharich@crain. com. Please send news releases ny. 642-3685. com. Use any Business Diary item $60 others. Add $10 after Jan. 11. Con- tact: (877) 633-3500. for Calendar to Joanne Scharich, The Monahan Co., Eastpointe, was se- Bruttell Roofing, Oak Park, has intro- as a model for your release, and Crain’s Detroit Business, 1155 lected for projects including: Con- duced the Bruttell “Sustainable Roof look for the appropriate category. Gratiot Ave., Detroit, MI 48207- struction manager for the Woodward Index.” The index is based on 11 major Without complete information, North American International Auto 2997, or e-mail jscharich@ Garden Theatre Block new office viability factors configured in a mathe- your item will not run. Photos are Show Industry Preview Cocktail Recep- crain.com. You also may submit building and renovation of the adja- matical matrix that provides an accu- welcome, but we cannot tion. 5-7 p.m. Jan. 14. Preview of the Calendar items in the Calendar cent building in Detroit; general con- rate measurement of the life cycle con- guarantee they will be used. Auto Show from noon-9 p.m. is option- section of crainsdetroit.com. tractor for addition to the Sanctuary dition of a roof. The sustainability al. The British-American Business

LETTERS ■ From Page 9 community and dignity to a long- With DPS’ student population fort to help children, focusing ex- lengthy formal ballot process. when their own interests are at term dysfunctional school system. having plunged to 94,054 in 2008 clusively on kids at DPS, while ig- Known as a “card check” law, stake, employer groups like the The time has come for all those from 157,003 in 2002, there are noring the tens of thousands of such a rule would help take away ABC are suddenly becoming the who want justice for our children some 62,949 fewer students at DPS children who attend public charter the ability of an employer to champions of workers’ rights. sitting in these buildings to finally than a mere six years ago. While schools in Detroit, seems unneces- threaten or coerce employees into One of the reasons unions have seize the day. Our children are de- some of those students have left sarily discriminatory. not joining or forming a union. seen a decline in membership over pending on us. the city or grown up, the majority Doug Dante The current requirement for for- the years has been the ability of Ann Crowley have shifted to charter schools. Detroit mal ballot elections allows employ- employers to delay ballot elections Detroit Children First Twelve thousand fewer children ers to delay unionization votes by for years and coerce employees to Detroit Pass ‘card check’ law attend DPS schools now than did employees. During delays, which avoid unionization. The Employee Shift to charter schools last year, and the pace of student Editor: can be years long, there is often Free Choice Act would turn the ta- departures is accelerating. Accept- The Employee Free Choice Act widespread abuse by employers, bles on that scenario, and, unfortu- Editor: will no doubt be brought before ing the inevitable, DPS has aban- who are able to threaten workers nately, that has the business com- Keith Crain, in his Dec. 22 col- Congress sometime early in the doned bus service to local neigh- with the loss of their jobs if they munity up in arms. umn, wrote: “I cannot imagine new Obama administration. borhoods with good charter vote in a union. My suggestion to the ABC and anyone would disagree with this: Organized labor’s overriding ar- schools. Employer groups like the Asso- other employer groups: Don’t fear The next generation or two of De- gument in promoting the act is With public charter schools fo- ciated Builders and Contractors a society with stronger unions. It troit’s citizens are now enrolled in cusing on elementary and middle that it would help to level the play- (“Union free choice isn’t free,” Let- seems to me this nation had some Detroit Public Schools.” schools, and with future plans to ing field in union organizing dri- ters, Nov. 30) take the opposite of our best years when workers I respectfully disagree. Only open more charter high schools, ves. The law, if passed, would re- stance. Their main argument had higher wages, decent pensions some of the next generation or two the future of DPS is written on the quire employers to allow a fast and against the act has been wrapped and more of a voice at work. of Detroit citizens are now en- wall. Families, given choice, are clean process for employees to in- up and twisted in the claim that Patrick Devlin rolled in DPS. Many of them in- fleeing, and DPS is already bank- dicate whether they want to form a workers’ rights are going to be in- Chief Elected Officer stead are enrolled in private and rupt in all but name. union in their workplace through fringed upon if the secret ballot is Michigan Building and Construction Trades Council public charter schools. While I strongly support any ef- the signing of cards, rather than a denied them. It’s interesting that Detroit 20080105-NEWS--0011-NAT-CCI-CD_-- 12/31/2008 4:32 PM Page 1

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 11

PEOPLE ARCHITECTURE dotte. Also, Angela He to manager, from senior auditor, Deloitte and Touche L.L.P., Detroit. IN THE SPOTLIGHT IN THE SPOTLIGHT Jeffrey Beard to managing director, Ex-Oakland County Prosecutor The Associated Food & Petroleum Huron Consulting Group, Detroit, from David Gorcyca, Dealers Inc. has named Auday director. 46, has joined Arabo to the Shelley Dickerson the staff of newly created to assistant vice Royal Oak- position of president and based law firm COO. branch manager, Flood, Lanctot Arabo, 32, Huron Valley & Connor previously State Bank, High- Vaughter Connolly P.L.L.C. as an served as land Township, attorney in the Dwight Vaughter president and Johnson Paone from assistant litigation group to CEO, Self Help CEO of the San Jeffrey Johnson, vice president/ of the small Addiction Rehabil- Diego-based Dominic Paone, branch manager, firm and will itation, Detroit, Neighborhood and Bruce Snyder Bank of America, Gorcyca handle criminal from vice presi- Market to senior associ- Waterford Town- defense cases. ate, Integrated Dickerson ship. dent of client ser- Arabo Association, Design Solutions, vices, Health The prosecutor of 12 years which represents independent Troy, from associ- GAMING Management Sys- decided not to seek re-election, retailers in the food and alcoholic ate. Also, Beth tems of America, and served his last day at the beverage industries in California, Jacob Miklojcik, casino gaming indus- Pinterpe to associ- prosecutor’s office Dec. 23. Nevada, Arizona and other try analyst, Lansing; Louis Glazier, Detroit. Also, ate, from project Western states. principal, Franklin Advisors L.L.C., Robert Connolly Flood, Lanctot & Connor was architect, and Farmington Hills; and Ted Gatzaros, Walker to COO, from vice founded six years ago and has 12 Arabo earned a bachelor’s degree Scott Smith to as- Detroit real estate developer and mi- president, Health attorneys in Royal Oak and Detroit, in political science at San Diego Snyder sociate, from de- nority shareholder in Greektown Management Systems of America, De- with a 60-40 split of criminal and State University and a law degree signer. Casino; to the management board of troit; and Thomas Walker to CFO, civil cases and a small family law from the California West School of Greektown Casino, Detroit. from financial analyst, the Detroit practice. Law. DISTRIBUTORS Academy of Arts and Sciences, De- Gorcyca cited the strain of public The Farmington Hills-based Laura Goik to cus- HEALTH CARE troit. life on his family as a factor in Associated Food & Petroleum tomer service Craig William Bohnhoff to chief med- deciding not to seek a fourth term. Dealers represents nearly 4,000 manager, Chase ical officer, Anesthesia Staffing Con- retailers, wholesalers, distributors Plastics, Clark- He is being succeeded by Jessica , Bingham Farms, from RETAIL and manufacturers in Michigan ston, from materi- sultants Inc. Cooper, Oakland County’s first president, Advanced Anesthesia Asso- als manager. Mike Ponkey to vice president of oper- female prosecutor and its first and Ohio. ciates, Saginaw. ations, Pet Supplies Plus, Farmington Democratic prosecutor in 36 years. — Sherri Begin Welch Hills, from district manager, south- EDUCATION INDUSTRY GROUPS eastern Michigan and Wisconsin. Dawn Markell to to executive director, director of acade- Christine Turner business development, mic advising, Ann Arbor Spark, Ann Arbor, from marketing Cleary University, Goik and sales consultant, Ann Arbor. Howell, from northern area coordinator, Washte- naw Community College, Ann Arbor. INFO/TECHNOLOGY Kimberley Payne ENGINEERING to business devel- opment manager, Charles Smith to , Royal senior planner, C/D/H Oak, from nation- Wade Trim, Tay- al sales manager lor, from director of financial ser- of planning, John- vices, financial son Hill Land markets, Ethics Studio, SalesPage Tech- Ann Arbor. nologies L.L.C., Richard Dionne to Kalamazoo. principal, Peter Payne Basso Associates, LAW Troy, from senior Smith associate. Also, Michael Donnelly, managing partner, Jessica Spak, Ronald Chapdelaine, Fraser Trebilcock Davis & Dunlap P.C., Joseph Seidl, Scott Peck and Stephen Detroit, re-elected to the firm’s board Bryk to associate, from project leader; of directors to serve as secretary. and Christopher Young, Christopher Mark Kopson to partner, Plunkett Kennedy and Daniel Yensch Jr. to pro- Cooney, Bloomfield Hills, from of coun- ject leader, from engineer/designer. sel. FINANCE MANUFACTURING Cézanne Carol Wright to Daniel Sikora to Dalí tax principal, The director of human Rehmann Group, resources, Seco Degas Troy and Farm- Tools Inc., Troy, ington Hills, from from manager of Gauguin CFO, American human resources Laser Centers, services, Volks- Magritte Farmington Hills. wagen Group of Eric Lambert to America, Auburn Matisse manager, George Hills. Johnson & Co. Modigliani CPA, Detroit, October 12, 2008 – January 18, 2009 Wright from principal, Sikora MARKETING Monet Lambert Associates P.L.L.C., Wyan- David Kanarowski to senior vice presi- dent, Communica Inc., Troy, from ex- Picasso Masterpiece after masterpiece after masterpiece. ecutive vice president, Lesinewicz As- See them now. PEOPLE GUIDELINES sociates, Perrysburg, Ohio. Renoir Announcements are limited to Marc Pasco to manager of client ser- For tickets visit www.dia.org or the DIA Box Office. vices, Hermanoff Public Relations, Rodin management positions. Nonprofit Farmington Hills, from account direc- Members receive FREE tickets. Join today! and industry group board tor, PCGCampbell, Dearborn. Van Gogh 313.833.7971 appointments can be found at www.crainsdetroit.com. Send NONPROFITS submissions for People to Joanne Scharich, Crain’s Detroit Business, Michelle Lynn Smith to director of de- velopment, Focus: HOPE, Detroit, FINAL DAYS 1155 Gratiot Ave., Detroit, MI from campaign director of donor ser- 48207-2997, or send e-mail to vices, United Way for Southeastern [email protected]. Releases Michigan, Detroit. must contain the person’s name, Barbara Spreitzer-Berent to vice presi- new title, company, city in which dent, health promotion and advocacy, the person will work, former title, Arthritis Foundation, Michigan Chap- This exhibition has been organized by the Cleveland former company (if not promoted ter, Troy, from associate vice presi- Museum of Art. In Detroit, the exhibition is proudly sponsored by Bank of America. Additional support has been from within) and former city in dent for programs. provided by the Michigan Council for Arts and Cultural Affairs and the City of Detroit. which the person worked. Photos Jeff Hewson to executive director, Amedeo Modigliani (Italian, 1884–1920). Portrait of a Woman (detail), c. 1917–18. Oil on canvas; 65 x 48.3 cm. The Cleveland Museum of Art, Gift of the Hanna Fund 1951.358. are welcome, but we cannot Great Lakes Christian Foundation, © The Cleveland Museum of Art. Vincent van Gogh (Dutch, 1853–90). The Poplars at Saint-Rémy (Les peupliers sur la Colline) (detail), 1889. Oil on fabric; 61.6 x 45.7 cm. The Cleveland Museum of Art, Bequest of Leonard C. Hanna Jr. 1958.32. © The Cleveland Museum of Art. Pierre Auguste Renoir (French, 1841–1919). Romaine Lacaux (detail), 1864. guarantee they will be used. Birmingham, from president, Colwell Oil on fabric; 81.3 x 65 cm. The Cleveland Museum of Art, Gift of the Hanna Fund 1942.1065. © The Cleveland Museum of Art. Sinclair, Royal Oak. 20080105-NEWS--0012,0013-NAT-CCI-CD_-- 12/31/2008 4:34 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 5, 2009

2008 Year in The economy goes bust stem-cell research proposals. In Oakland County, L. Brooks Patterson The dismal state of the economy dwarfed every other is- withstood a challenge from Southfield sue in Michigan in 2008. Mayor Brenda Lawrence to keep his coun- Detroit was first to feel the pain brought on by rising job- ty executive post, and the Oakland County less rates, home foreclosures, bankruptcies and high gas Commission kept its GOP majority. prices. Democrat Gary Peters defeated Republi- Then, Wall Street had to turn to the federal government can Joe Knollenberg for a seat in the 9th for a $700 billion handout, and the credit crunch hit. U.S. Congressional District. Weakness spread to parts of the state that historically In the Michigan Legislature, Democrats have been buffered from economic downtowns: the Ann Ar- added nine seats, giving them a 67-43 ma- Patterson bor area and parts of western Michigan. jority in the state House. Nationally, employers said they eliminated more than House Speaker Andy Dillon also staved off a recall at- 500,000 jobs in the month of November alone. tempt to win re-election. In a word, the year was grim. Lights, camera, action Michigan’s new film incentive law seems to be getting Hollywood’s attention. Signed into law in April, the package reimburses film- makers up to 42 percent on all production expenses accrued in Michigan. NEWSCOM In early June, Crain’s reported 22 film projects valued at Chris Chelios celebrates with the Stanley Cup at the victory $194 million were OK’d by the state treasurer. parade for the Detroit Red Wings in Detroit on June 7. By August, the four-month-old film incentive was credit- ed with generating at least 21,000 room-nights worth $2.4 We are Hockeytown million at local hotels. Our Detroit Red Wings celebrated their 11th Stanley Cup championship with a parade and rally in downtown De- MSU gets isotope beam facility troit in June. Scientists interested in studying the kinds of nuclear re- The Wings notched their championship with a 3-2 win The Italian Garden at the Westin Book Cadillac. actions that power the sun and stars soon will be heading to over the Pittsburgh Penguins in the National Hockey League East Lansing. finals. In December, Michigan State University edged out rival bid- In other sports news, it was a topsy-turvy world in 2008 Westin Book Cadillac restored der Argonne National Laboratory outside Chicago as the site of for Michigan’s two Big Ten football teams. After going 6-2 in the Big Ten and 9-3 overall, Michigan More than 700 well-wishers came out in October to wit- a new $550 million Facility for Rare Isotope Beams. The center will accelerate subatomic particles at high State University fans were smiling — and packing for a ness the unveiling of the $200 million historic renovation of speeds and then crash the resulting beams into targets. The Jan. 1 bowl game in Orlando. the Westin Book Cadillac hotel. research could lead to breakthroughs in medicine and na- The University of Michigan Wolverines, under first-year The hotel already has reported steady bookings for events tional defense. coach Rich Rodriguez, woke up with a hangover in No- and conventions, with some events confirmed as far ahead The new facility, on MSU’s campus, is expected to take vember after going 2-6 in the conference and 3-9 overall. as 2010. about a decade to design and build. With no bowl in sight, humble pie was on the menu at The refurbished hotel has 39,000 feet of functional space, It will host an international community of about 100 sci- the Victors Club. including its four main ballrooms and five smaller meeting entists and graduate students. And please, let’s just avoid any talk about the season rooms. the Detroit Lions had. The Italian Renaissance-style hotel closed in 1984 after 60 years as a premier accommodation. It was the tallest hotel Watch the ponies run had collected from the now-defunct Great Lakes Downs in in the world when built in 1924. Michigan has a new thoroughbred horse racing track in Muskegon. The restoration of the 33-story building, headed by the Wayne County’s Huron Township. Campbell’s $142 million facility opened July 19. Cleveland-based Ferchill Group, began in August 2006. Horseman Jerry Campbell, owner of one of Michigan’s The track’s inaugural season saw $10.3 million wagered largest horse stables and the retired chairman of Citizens Re- through Nov. 9, including 62 days of live racing that ended Detroit mayor gets jail time public Bancorp in Ann Arbor, fast-tracked construction on in November, according to the latest statistics from the the new Pinnacle Race Course to capture $6 million the state Michigan Office of Racing Commissioner. The city of Detroit’s text-messaging scandal reached an ugly climax on Oct. 28 when Mayor Kwame Kilpatrick was sentenced to four months in jail. Kilpatrick pleaded guilty to obstruction of justice and admitted he lied about an af- fair with his chief of staff, Christine Beat- ty, while testifying in a civil lawsuit in 2007. He also pleaded no contest to as- saulting a sheriff’s detective. Beatty later agreed to a 120-day sen- tence beginning Jan. 5 for lying under oath. The mayor got no kid-glove treatment from Wayne County Circuit Court Judge Kilpatrick David Groner, who ruled against giving Kilpatrick any opportunity for an early release. With Kilpatrick out of the Manoogian Mansion, more than a dozen would-be mayoral candidates queued up to be on the ballot for February’s special election. The election It was historic. In November, voters elected Barack Obama the 44th presi- dent of the United States and the nation’s first black com- mander-in-chief. With Michigan’s economic future at stake, business own- ers are looking to Obama for some help. COURTESY OF PINNACLE RACE COURSE Closer to home, Michigan passed medical marijuana and Pinnacle Race Course opened in July and saw $10.3 million wagered in its first season. 20080105-NEWS--0012,0013-NAT-CCI-CD_-- 12/31/2008 4:34 PM Page 2

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 13

NOTABLE DEATHS IN 2008 Ⅲ Jim Beal, longtime owner of J.C. Beal Construction in Ann Arbor, April 30, 87. Ⅲ Robert Blackwell, ex-Highland Park mayor and former Wayne County Commissioner, Dec. 16, 84. Ⅲ Jeffery Blaine, head of the last Detroit City Charter Commission, Aug. 29, 59. Ⅲ Richard Bochenek, who owned and operated Hogan’s restaurant in Bloomfield Hills, July 27, 78. Ⅲ Christian Bockhausen, executive vice president and chief n Review information officer of Compuware Corp., Dec. 16, 67. Ⅲ Terrance Boyle, former Recorder’s Court judge and husband of retired Michigan Supreme Court Justice Patricia Boyle, National City Bank acquired by PNC It could also house private businesses and startup compa- March 17, 69. nies seeking to commercialize technology and ideas created at Ⅲ George Brand Jr., former managing partner and the first The acquisition of National City Corp. by Pittsburgh-based UM. chairman of Detroit-based Butzel Long, June 25, 89. PNC Financial Services Group in October was expected to create Ann Arbor Mayor John Hieftje expressed concern over the Ⅲ Wally Bronner, founder of Bronner’s Christmas Wonderland the fifth-largest U.S. bank when the deal closed at the end of deal because the site will come off the city’s tax rolls as part in Frankenmuth, April 1, 81. the year. of the university. Ⅲ Sylvia Brown, 90, co-founder of the Children’s Leukemia With 272 branches in Michigan, National City had the sec- Foundation of Michigan, Nov. 30, 90. ond-highest number of branches in the state as of June 30, ac- Ⅲ Kimberly Cahill, former president of the State Bar of cording to the Federal Deposit Insurance Corp., behind Chase’s Water and sewerage deal reached Michigan, Jan. 21, 47. 297. A historic agreement was finally hammered out between Ⅲ Susan Cascade, former advertising director of Crain’s Its total deposits of $11.9 million ranked it No. 5 in deposit Detroit and Wayne, Oakland and Macomb Detroit Business, Feb. 26, 63. market share of 7.6 percent. Bank of America was No. 1 with county leaders on thorny issues involving Ⅲ Ouida Cash, founder and former CEO of Inkster-based $24.9 billion and market share of 15.8 percent. operations of the Detroit Water and Sewer- Starfish Family Services, Feb. 15, 59. The new bank will have deposits of $180 billion. age Department. Ⅲ Mary Helen Cavanagh, widow of former Detroit Mayor The agreement, reached after months of Jerome Cavanagh, May 27, 78. Cobo Center plan finally approved negotiations, would create a new way for Ⅲ John “Joe” Collins, ex-president of Wayne National Life the city and suburbs to resolve future dis- Insurance Co. in Detroit and Michigan’s youngest-ever After 10 years of negotiating, plans to renovate Cobo Center putes without going to court, said court- Democratic Party chairman, Jan. 1, 72. were finally approved by the state Legislature. appointed facilitator F. Thomas Lewand, Ⅲ Dr. Ronald Davis, ex-director of the Center for Health The bill, a compromise between the House and Senate, of Bodman L.L.P. Promotion and Disease Prevention at Henry Ford Health calls for a project cost of $279 million, rather than $288 mil- Lewand State officials are poised to seek $4 bil- System in Detroit, Nov. 6, 52. lion, because all construction materials for the job will be ex- lion in road and sewer construction funds Ⅲ Judy D’Eath, who helped form the Detroit River Regatta empt from state sales tax. from the Obama administration, including more than $1 mil- Association, May 20, 61. A five-member governing board will oversee Cobo opera- lion for projects that could be started in six months in the tri- Ⅲ Richard Durant, co-founder of Durant & Durant P.C. in tions. Each member will have individual veto powers over county area, Lewand said. Detroit, Jan. 17, 89. decisions in building and running Cobo. One member will be Ⅲ Tatum Eason, local talk-radio host, Jan. 27, 72. appointed by Detroit’s mayor, one by the governor and one Ⅲ George Edwards III, former Detroit city clerk, Feb. 28, 67. each will represent Wayne, Oakland and Macomb counties. Blue Cross bills die in Legislature Ⅲ William Fitzgerald, former Democratic state Senate majority The project will be funded by extending hotel and liquor Legislation sought by Blue Cross Blue Shield of Michigan to leader, Feb. 3, 65. taxes, and state cigarette tax revenue. modify the individual health insurance market died in the Ⅲ Al Fleming, former Automotive News industry editor and Michigan Legislature in late December. Unable to reach a com- longtime public-relations professional, July 19, 78. Merger creates world’s largest airline promise in a contentious battle to modify the market on behalf Ⅲ Betty Flores, who ran a medical practice and had been chief of Blue Cross, lawmakers failed to vote on the two bills. of staff at William Beaumont Hospital, both in Royal Oak, July Delta Air Lines Inc. and Northwest Airlines Corp. taxied down Bills not passed by the end of the year must be reintro- 26, 83. the runway together and into a $2.8 billion merger in Octo- duced once the new Legislature convenes in January. The Ⅲ Richard Francis, former commissioner of Michigan’s ber. The new airline will be called Delta and headquartered 110-member House will have 46 new members. The Senate Financial Institutions Bureau, Jan. 14, 75. in Atlanta. will have the same 38 members. Ⅲ Sam Frankel, developer and philanthropist, April 7, 94. Its 75,000 employees will serve customers in 66 countries Ⅲ Doug Fraser, former president of the United Auto Workers, and more than 375 cities across the globe, more than any oth- Feb 23, 91. er airline. Sell vino? Can’t ship it to Michigan Ⅲ William Giles, former executive editor of The Detroit News, The new airline will feature Delta food and flight atten- A bill that largely prevents out-of-state retailers from ship- Jan. 29, 80. dant uniforms, and Northwest’s jets will be painted in ping wine directly to Michigan customers, by limiting the Ⅲ Ned Harkness, former coach and general manager of the Delta’s colors. means of delivery for all shippers, in-state and out-of-state, Detroit Red Wings, Sept. 19, 89. Another big cleared the Michigan Legislature. Ⅲ Colin Hubbell, founder of The Hubbell Group, Aug. 21, 50. change at Detroit Businesses that hold beer and wine retail licenses could Metropolitan Ⅲ Adrian Kantrowitz, who performed the first heart transplant continue to do catering, but they, comparable out-of-state re- in the United States and founded Detroit-based research Airport is the tailers, brewpubs and microbrewers would have to deliver company L-VAD Technology Inc., Nov. 14, 90. new north termi- the beer or wine via their own employees and not a third-par- Ⅲ Ellen Mulry Keenan, co-founder of Lighthouse of Oakland nal, a $450 mil- ty delivery service, under House Bill 6644. The bill was on County, July 14, 88. lion, 824,000- the governor’s desk for signature as Crain’s went to press Ⅲ Scott King, CEO of Southfield-based Eaton Corp.’s square-foot New Year’s Eve. automotive group, June 11, 48. facility that re- Ⅲ Vicki Levin, former research officer for the U.S. Department places the Smith Read all about it … on the Web of Health and Human Services and wife of U.S. Rep. Sander VITO PALMISANO and Berry termi- Levin, Sept. 4, 74. The new north terminal at Metro. nals. The Detroit Free Press and The Detroit News, in an effort to Ⅲ H. Alexander McDonald, investment banker and former stanch their financial losses, will cease home delivery of member of the state House of Representatives, March 12, 87. Fewer Michigan residents, Census says their print editions four days a week, making content avail- Ⅲ James Metz, former Wayne County assistant prosecutor and able on subscription Web sites those days, and will eliminate associate counsel for the state Attorney Grievance Michigan was one of just two states that lost population upward of 190 non-newsroom jobs in the first quarter of 2009. Commission, July 1, 59. from 2007 to 2008, according to estimates from the U.S. Census The partnership that oversees joint business operations of Ⅲ Ken Morris, former director of United Auto Workers Region Bureau. the newspapers was unprofitable for the first time ever in 1B, May 27, 92. Rhode Island was the other state to lose population, the As- 2008, and losses are in the millions of dollars, said David Ⅲ John O’Reilly Sr., former mayor and police chief of Dearborn, sociated Press reported. Hunke, CEO of the Detroit Newspaper Partnership Inc., which is Feb. 6, 89. Leading in population growth was Utah, whose population 95 percent owned by Free Press owner Gannett Co. Inc. Ⅲ Ray Parker, founder of Detroit-based real estate company climbed by 2.5 percent from July 2007 to July 2008, knocking RFP Associates, July 12, 65. Nevada from its usual top spot as the nation’s fastest-grow- Ⅲ Elly Peterson, former chair of the state Republican Party, ing state. Arizona is the second-fastest, followed by Texas, Bush steps in with loans for Detroit 3 June 9, 94. North Carolina and Colorado. President George W. Bush approved on Dec. 19 an emer- Ⅲ Johnny Podres, former Detroit Tigers pitcher, Jan. 13, 75. gency bailout of the U.S. auto industry, offering $17.4 billion Ⅲ Will Robinson, longtime Detroit Pistons scout and the first UM to buy Pfizer campus in rescue loans in exchange for tough concessions from the black man to coach a Division I college basketball team, April deeply troubled carmakers and their workers. 28, 96. The University of Michigan announced plans to purchase Allowing the auto industry to collapse in the middle of Ⅲ Richard Rohr, former chairman of Detroit-based law firm the 2 million-square-foot former Pfizer Inc. campus in Ann Ar- what is already a severe recession “would worsen a weak job Bodman L.L.P., Aug, 27, 81. bor for $108 million. market and exacerbate the financial crisis,” Bush said. Local Ⅲ Robert Siefert, retired chairman and CEO of Kelsey-Hayes The acquisition is expected to close in June. The site in- business and political leaders praised the Bush administra- Co., May 30, 76. cludes 25 buildings on 177 acres along Plymouth Road. tion’s decision to lend General Motors Corp. and Chrysler L.L.C. Ⅲ Gerald Smith, president and CEO of Detroit Youth UM President Mary Sue Coleman said about 2,000 new jobs $17.4 billion in short-term government loans. Foundation, Aug. 30, 67. will be created at the site over the next 10 years. Gov. Jennifer Granholm also expressed her thanks. Ⅲ Nelson Westrin, first executive director of the Michigan The facility will be used by the University of Michigan Med- “The auto industry is the backbone of American manufac- Gaming Control Board, May 28, 61. ical School and other departments for research in fields like turing, and the ripple effects of bankruptcy would have Ⅲ Sophie Womack, vice president of medical affairs for DMC- biomedical sciences, health sciences, pharmaceutical, touched communities and families all across our nation,” Harper University Hospital and DMC-Hutzel Women’s Hospital, biotech, energy, nanotechnology and others. Granholm said in her statement. Feb. 17, 53. 20080105-NEWS--0014-NAT-CCI-CD_-- 12/31/2008 4:35 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 5, 2009

2008 The absurd

BY TOM HENDERSON Consider it a little help with the cocoon CRAIN’S DETROIT BUSINESS Last January, then-City Council Presi- dent Ken Cockrel Jr. interceded on behalf of ood riddance! George Hill, chairman and CEO of Diversified That’s about the best that can be Chemical Technologies of G said for 2008, a bad year by any ac- Detroit, in connection count. with a tax bill of $211,000 It began in January — when else would it that was overdue. In May, begin? — with the news that Mayor Kwame someone on behalf of Kilpatrick had lied under oath about an af- Cockrel, according to Hill fair with chief aide Christine Beatty, and it and the Detroit Free Press, ended with the Detroit Lions losing to the asked Hill to pay half of Green Bay Packers to become the first team to the $3,000 cost of a recep- go 0-16 in National Football League history. tion Cockrel hosted dur- In between, the subprime crisis continued ing the Mackinac Policy Cockrel unabated; the Detroit Tigers, considered a Conference. Hill was hap- lock for the World Series, stunk out Comeri- py to do so and described it as goodwill to- ca Park; the auto industry went into melt- ward a city in “metamorphosis, a caterpillar down and credit markets had seizures. turning into a butterfly.” Wall Street investment giants closed their doors or were sold for pennies on the dollar. Where’s the beef? TOM HENDRESON/CRAIN’S DETROIT BUSINESS Public banks saw their share prices plummet. Bruce McClellan thought he would make $300,000. He ended up cutting the lawn at the Nasdaq suspended rules meant to punish Cockrel’s chief of staff, John Clark, re- foreclosed house. those stocks that fell below a buck for fear of signed in June after the FBI allegedly video- Slam-dunked in Bloomfield Hills not having enough companies left to have a taped him accepting $2,000 from James In August, sources told Crain’s that former Detroit Pistons guard Lindsey Hunter was the market. And Bernard Madoff, the former Rosendall, an informant who worked at target of an FBI investigation of possible mortgage fraud involving the $1.25 million sale chairman of Nasdaq, admitted to a $50 billion Synagro Technologies, a waste-management of a Bloomfield Hills house to a straw buyer, Bruce McClellan of Waterford Township. Mc- Ponzi scheme that impoverished formerly company in Houston that got a big contract Clellan told the Feds he was told he would clear $300,000 after the house was resold at a wealthy Jewish families from coast to coast with the city of Detroit in 2007. FBI sources profit. That sale never occurred and the house went into foreclosure. While foreclosure and left charities around the country reeling. told the Free Press that City Council mem- played out, McClellan, a boiler operator for the Pontiac schools who never spent a night How bad was 2008? We know how bad it got bers were also targets of their corruption in the house, had to cut the lawn there all summer to avoid tickets from ordinance en- for the auto industry, its leaders subject to na- probe, reminiscent of a council probe in 2004 forcement officials. tional ridicule as they prostrated themselves that resulted in the indictment of Kay before Congress and the White House. It was Everett, who was taped asking a city con- so bad even Toyota Motor Corp. lost money. tractor for 17 pounds of sausage in exchange ty pokey on Oct. 28, Kilpatrick flashed his ed a suite for her and her husband, U.S. Rep. But nothing frames how bad 2008 was for her vote. French shirt cuffs, showing an affinity, still, John Conyers, and their two kids. The hotel than this from General Motors Corp.’s quarter- for the ones bearing the title of “Mayor.” said she had reserved a room for four with ly earnings report in November 2007 — ital- I want to honor Dr. King by not honoring Dr. two double beds. During the argument, a ics supplied by Crain’s — about how good King Spare some change? I’m not gonna lie to cancellation materialized, the move was no auto execs thought it was going to be. In July, the Michigan Supreme Court you. I ain’t gonna drink with the money. I ran longer required and police dispersed. “General Motors Corp. today announced ruled that a former Focus: HOPE employee out of gas and I need to get home its financial results for the third quarter of was not entitled to unemployment compen- In November, Detroit 3 CEOs went to Hey, you try finding good help 2007, marked by record global sales, further sation after refusing to attend a mandatory Washington to make the case they were so In December, the Free Press reported that improvement in its core automotive busi- event in honor of the Rev. Martin Luther broke they needed billions in bailout money the FBI was investigating Wayne County ness driven by solid financial performance King Jr. in 2002. The nonprofit organization to stay in business. Each arrived in his own commission boss Jewel Ware after an inter- in key growth markets around the world required all its employees to attend its annu- corporate jet, needing the solitude to prac- nal county audit suggested two county em- and improved liquidity.” al King Day celebration, which that year tice his hang-dog look on the flight there. ployees, both ex-convicts who were friends Sayeth Chairman and CEO Rick Wagoner was held in Dearborn. Patricia Brackett of Ware’s husband, Jesse Long-Bey, himself in paragraph two of the said she refused to attend because the histo- You can’t expect her to pack her own heat an ex-convict, were collecting county money ry of race relations in Dearborn was not in earnings release: “We Detroit City Council President Monica to work at Ware’s Red Rooster bar and grill keeping with King’s aspirations. She was continue to implement Conyers took two city cops with her in No- in Idlewild, long a vacation destination for the key elements of our docked two days’ pay, which she said caused those in the black community. depression that made her unable to work. vember to a National North American turn- League of Cities conference Bailout? No. Hand out? I’ll be there this around strategy, and in Orlando. “She is a That must be some, uh, garment weekend these initiatives are dri- woman ... you have to be During a heated televised debate in July ving steady improvement concerned for her safety,” Jim Bunning, the former Tiger All Star with her two rivals for the Democratic pri- in our financial results. ... said her media rep, Denise pitcher in the 1950s and now a cranky Re- Our record third-quarter mary, U.S. Rep. Carolyn Cheeks Kilpatrick, publican senator in Ken- the mayor’s mom, told Mary Waters “You Tolliver. Really? In 2006, Wagoner global sales are strong ev- Conyers made headlines tucky, led the fight to kill can’t even carry my bra.” a congressional bailout of idence that our commitment to great cars for punching out a Walled the auto industry, com- and trucks is being embraced by consumers Lake woman during a bar around the globe.” Competence? On the job? Now they tell us plaining that UAW mem- Conyers brawl, an act determined Some embrace! The Detroit Police Department’s crime lab bers made too much an by prosecutors to be self-defense. More from the year blessedly behind us: was shuttered in September after an audit hour, then got ready to fly by the Michigan State Police revealed an er- to Michigan and an ap- But you can expect her to get heat if she ror rate of 10 percent in ballistics tests and pearance in December at He can always get a job in New Orleans as a needs it fortune teller said many lab findings were hard to verify the Gibraltar Trade Center In February, mayoral aide DeDan Milton In April, after news of the alleged affair because notes, photographs and other docu- in Taylor, where he was Bunning filed a police report saying Conyers, then with his chief of staff had dominated the ments were “almost nonexistent in the case to collect $35 for each file records” and that lab workers weren’t president pro tem, threatened to shoot him baseball he signed, $45 for each poster and headlines for months, Kilpatrick told a given competency tests before being hired. after an argument at a city pension board $55 for each jersey or glove. Organizers told packed house from the pulpit of the Shrine meeting. David Clark, chair of the General him to stay in D.C. and canceled his appear- of the Black Madonna that “I will humbly Sharing the pain Retirement System, backed up Milton’s claim, ance. serve you till the day I die.” United Auto Workers members can feel bet- telling a reporter: “She ran at him. She told ter about their concessions Congress or- him she would get a gun if she had to and No, but a smarter dad might not have been Thank goodness they didn’t die in vain dered as part of the bailout package in De- that she has four brothers and they would a bad idea After a Detroit judge ruled in June that con- cember, knowing that in September, GM whoop his a— if she asked them.” At a press conference the week before the tents of a closed-door hearing about the may- managers, who previously got a new lease last loss of the Lions’ 0-16 season, Detroit News or’s text messages would remain secret for the vehicle every three months, were told they This is what happens when you don’t bring columnist Rob Parker asked head coach Rod time being, Kilpatrick said, “When you really could only get new cars every six months. your own cops Marinelli, whose son-in-law was the team’s think about it, from 1776 to 2008, men and A Denver cop on duty at a hotel during the defensive coordinator, if he wished his women of all ages, colors and creeds died in Make me an appointment in four months so Democratic National Convention in July daughter had married a better coach. this country for Kwame Kilpatrick and you to I can get the ‘ex’ sewn on called for backup during a beef with Con- Tom Henderson: (313) 446-0337, thender- have the right to have a fair trial.” At his sentencing to 120 days in the coun- yers over a hotel room. She said she expect- [email protected] 20080105-NEWS--0015-NAT-CCI-CD_-- 12/31/2008 4:36 PM Page 1

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 15 New Ann Arbor bank sees credit crunch as opportunity

BY TOM HENDERSON list.” January 2005. “We’ve been getting calls for around. We’ll all gain market CRAIN’S DETROIT BUSINESS The bank got approval for FDIC The new bank ended up being weeks on end from people wanting share. There will be plenty of busi- insurance in December. capitalized with $12 million. to come in and do business with ness for them to go get. Federal and state regulators are Broucek said he has hired 14 em- “The money was rolling in so us. “There will be expected to make a final inspec- ployees and hopes to have four fast at the end we could hardly “The big banks are pulling in a major shift to tion of the new Ann Arbor State Bank more hired by stop it,” joked Broucek. “That was their horns and some of the small community today. Approval to begin opera- the time the at a time when credit was disap- banks are, too. The number of banks. It’ll be tions is expected to be a formality, bank opens in pearing. If the market wasn’t so commercial lenders at Comerica, decades before and the bank plans to kick off busi- the former An- scared, we probably could have Chase and Bank of America is a frac- people forget ness with a week-long grand open- derson Paint Co. raised $25 million.” tion of what it was a year ago. You what big banks ing beginning Jan. 19. building in Broucek said he has hired four don’t need lenders if you’re not did to them. Officials at Ann Arbor State downtown Ann commercial lenders, all Ann Arbor lending.” Customers who Bank and at least one competitor Arbor, at 115 W. veterans, and projections are to “Bill Broucek’s going to be do- have been with say that with big banks sharply re- William. The have a portfolio of $60 million to ing a lot of lending,” said Don them for 30 ducing their commercial lending, building was $70 million in commercial loans by Mann, regulatory liaison for the Ranzini years and never it’s a good time to open a new com- completely ren- the end of 2010, this coming at a Lansing-based Michigan Association missed a payment are being cut munity bank in the city, recession Broucek ovated. time when established lenders of Community Bankers. “All the big loose. Right now, it’s Thanksgiv- or no. Last April, Broucek told Crain’s have been slashing their portfo- banks in Ann Arbor have cut back ing Day and Christmas Day all “I’m not in any way worried he had failed at retirement and lios, cutting off lines of credit and their commercial lending. If Com- rolled into one for community about it,” said chairman and CEO hoped to raise $9 million for a new paring their staffs. erica and National City used to have banks, and that’s an amazing thing Bill Broucek, speaking of the visit bank. In 1974, he founded Citizens “That amount of money will a total of 17 commercial bankers to say in Michigan in the middle of from officials from the Federal De- Trust Bank of Ann Arbor, which help a lot of businesses grow and there, they’re probably down to a recession.” posit Insurance Corp. and the state’s was later sold to Society Bank of prosper. There’s a ton of business two or three, now.” Peter Schork, who has worked Office of Financial and Insurance Reg- Cleveland. In 1995, he formed the out there. It’s an ideal time to be “All the big banks have stopped for Broucek for 20 years, including ulation. “It’s just on their check- Bank of Ann Arbor and retired in starting a bank,” said Broucek. lending and are calling in their seven as head of mortgage loans loans. Our loan demand is as and retail banking at the Bank of strong as it’s ever been in the his- Ann Arbor, is president and COO. tory of the bank. We had a loan Tim Marshall, who replaced committee meeting before Christ- Broucek as CEO at the Bank of mas and it lasted for three-and-a- Ann Arbor when he retired, was half hours,” said Stephen Ranzini, out of town and unavailable for BRIEFLY chairman and president of Ann comment. Better Business Bureau revamps the Ice, which closed in July. in the regionals advance to the na- Arbor-based University Bank. Ann Arbor will have five com- Karmanos finalized the agree- tional competition in the spring. “They’ll have good success,” he munity banks. The others are Unit- consumer rating system ment with Commerce Township- But under the rules of Detroit- said, referring to Ann Arbor State ed Bank & Trust and Ann Arbor Com- Bank. “I’m not concerned about merce Bank. The Better Business Bureau is based Askar Brands, operators of based FIRST in Michigan Inc., a new- someone else coming in. There’s Tom Henderson: (313) 446-0337, adopting a more sophisticated con- CJ’s Brewing Co., Papa Romano’s ly formed nonprofit organized to more than enough business to go [email protected] sumer-rating system. Pizza, Mr. Pita and Stucchi’s Ice govern Michigan’s portion of the Starting Dec. 29, the consumer- Cream, in October. event, the state will be divided into driven business-ratings service Karmanos also is the franchisee seven local districts with their changed its current “satisfacto- of the first co-branded Papa Ro- own contests, and those winners ry/unsatisfactory” options, adopt- mano’s Pizza and Mr. Pita restaurant will advance to a single statewide ing instead an A through F grad- which opened this summer in De- event in Ypsilanti in late March. CAREER MOVES ing system that takes 16 factors troit’s Campus Martius. Tom Lang, communications spe- into account, including the busi- CJ’s Brewing Co. offers micro- cialist for G-2 Communications and a ness’ overall complaint history, brewed beers and tavern food in- spokesman for FIRST in Michigan, FINANCE MANAGEMENT longevity and licensing, govern- cluding deep-dish pizza, burgers said the new approach in the state and jambalaya. means only Michigan schools can Seeking a high energy Treasury Manage- FINANCIAL TECHNICIAN ment actions against the business ment Sales Officer, CCM or CTP certif- United States District Court, Eastern District related to marketplace activities — Nathan Skid participate in the process — tradi- ication desired or within one year of of Michigan - EOE. This position is located in employment, 3 years Treasury Sales or and timely resolution of com- tionally, any school could partici- the Court Services Unit of the Clerk’s Office related experience, bachelor’s degree in plaints. pate in any regional competition and reports to the Financial Supervisor. The finance or accounting. Self-motivated Former Archer aide named employee is a member of a team that sup- The change comes in response to — and the national organization self-starter eager to sell and take respon- ports the financial operations of the Court, a BBB-commissioned survey as- will be watching the Michigan sibility beyond job description and con- visiting professor at UM maintains required accounting records, proc- sult and present to external and internal sessing consumer interest, she model this year for possible adop- esses Criminal Justice Act (CJA) vouchers Gloria Robinson, former Detroit audiences. Collaborates with related said. The BBB’s accreditation tion on a national level. and instructs appointed counsel and court- bank personnel and keeps abreast of in- Mayor Dennis Archer’s director of room deputy clerks/chamber staff on CJA process will stay the same. — Chad Halcom dustry developments and clients’ needs. planning and development, has guideline requirements. Required: A high Nancy Kaffer High caliber sales, communication, and — school diploma or equivalent with a minimum been appointed Sojourner Truth related business skills that anticipate of two years progressively responsible cleri- visiting professor at the University and address concerns and offer solutions cal or administrative experience that involved required to join our team. Equal Oppor- Greektown adds 3 to casino board of Michigan-Taubman College of Ar- the routine use of keyboard skills and knowl- chitecture and Urban Planning. tunity Employer. Greektown Casino L.L.C. has added edge of the rules, regulations, terminology, Robinson also served in the ad- Applicants may apply at www.tcfbank.com etc. of financial administration and/or ac- three members to its management ministration of former President BANKRUPTCIES under Career Opportunities or fax a resume to counting, including at least one year equiva- board: Lansing-based gaming ana- lent to work at the CL-24 level. Financial Bill Clinton as assistant to the secre- (734) 542-2975 or mail to: lyst Jake Miklojcik; Lou Glazier, prin- Technician Vacancy Announcement and in- tary for community empowerment The following businesses filed TCF Bank Human Resources structions for application can be found at cipal at Farmington Hills-based at the U.S. Department of Housing for Chapter 7 or 11 protection in 17440 College Parkway, 604-01-J http://www.mied.uscourts.gov Franklin Advisors L.L.C.; and Ted and Urban Development. She is cur- U.S. Bankruptcy Court in Detroit Livonia, MI 48152 Gatzaros, owner of Atheneum Suites rently COO for Detroit-based Her- Dec. 19-30. Under Chapter 11, a © 2008 TCF National Bank, Member FDIC Hotel, Fishbone’s Rhythm Kitchen itage Vision Plans Inc. As part of company files for reorganization. Café, and a minority shareholder Call Us For Personalized the visiting professor role, she will Chapter 7 involves total liquida- MANAGEMENT in Greektown Casino. The five- teach “Big-City Politics and Plan- tion. Service: (313) 446-6068 member casino management ning” at UM for winter semester Davenport-Ferguson Physician COURT SERVICES MANAGER board also includes Joe McCoy, cur- 2009. Group, P.L.L.C., 15565 Northland CLOSING TIMES: Monday 3 p.m., rent chairman of the Sault Ste. United States District Court, Eastern Dis- — Robert Ankeny Drive, Suite 204 East, Southfield, trict of Michigan - EOE. This position is lo- one week prior to publication date. Marie Tribe of Chippewa Indians, the voluntary Chapter 7. Assets: cated in the Court Services department in Please call us for holiday closing times. Detroit, Michigan. The Court Services Man- majority owner of the casino. A $19,171; liabilities: $230,138. fifth member has yet to be named. Michigan to serve as pilot for ager reports to the Deputy Court Adminis- FAX: (313) 446-1757 Lifelong Auto L.L.C., 4912 Mother trator and is responsible for providing ad- E-MAIL: [email protected] — Robert Ankeny reorganized robotics competition Teresa Drive, Ann Arbor, volun- ministrative services to judges’ chambers, tary Chapter 7. Assets and liabili- the Clerk’s Office, Probation Department INTERNET: and Pretrial Services Agency. The Court Michigan is serving as a one- ties not available. www.crainsdetroit.com/section/classifieds Karmanos opens 2nd restaurant state pilot program this academic Services Manager has responsibility for all Lumber & Millwork Inc., 3741 St. financial, procurement, space and facilities, Confidential Reply Boxes Available Budding restaurant franchisee year for a possible reorganization Aubin, Detroit, voluntary Chapter and security services provided to the Court. Requires Bachelor’s degree with a mini- Peter Karmanos Jr., more widely of the national FIRST Robotics Com- 7. Assets: $8,000; liabilities: PAYMENT: All classified ads must be known as president and CEO of petition. mum of 5 years of progressively responsi- prepaid. Checks, money order or $1,065,922. ble administrative experience, including at Detroit-based Compuware Corp., The state in past years has host- least 3 years in a position with executive Crain’s credit approval accepted. Pulmonary & Internal Medicine Credit cards accepted. opened his second restaurant, ed at least three of the 41 regional Specialists, P.C., 26699 W. 12 Mile level management experience. Must have bringing CJ’s Brewing Co. to the competitions nationwide as part of a strong background in finance and ac- Road, Suite 201 Southfield, volun- counting, budget administration. Court Compuware Arena in Plymouth. For Inspiration and Recognition of Sci- See tary Chapter 11. Assets: $318,000; Services Manager Vacancy Announcement Crainsdetroit.com/Section/Classifieds The 5,000-square-foot restaurant ence and Technology, or FIRST. Top liabilities: $1,780,905. and instructions for application can be seats 270. It replaces Ginopolis’ On performers and category winners found at http://www.mied.uscourts.gov. for more classified advertisements — Compiled By Julie Dawso 20080105-NEWS--0016-NAT-CCI-CD_-- 12/31/2008 4:37 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 5, 2009 MPRO helps hospitals, nursing homes improve quality, safety

BY JAY GREENE Sam Watson, senior vice presi- nosed with MRSA.” But national data released this cers during their stay. CRAIN’S DETROIT BUSINESS dent of patient safety and quality If patients are identified with month shows the number of hospi- “Hospitals are working very with the Michigan Health and Hospi- MRSA before admission, Yellan tal patients with pressure ulcers as hard to do a skin assessment when MPRO, a Farmington Hills-based tal Association, said MPRO’s work said, additional precautions, in- a primary diagnosis increased 27 a patient is admitted so they won’t company, is working with dozens with hospitals to reduce bacterial cluding taking percent to 45,500 be blamed,” Yellan said. of hospitals, nursing homes, physi- staph infections and pressure ul- antibiotics or re- in 2006 from Watson said MPRO is helping cian organizations and home cers, or bed sores, complements stricting access, 35,800 in 1993. health agencies in Southeast hospitals and nursing homes more the association’s ongoing work. can be taken to Anderson said Michigan to help improve quality, effectively assess patients for signs “The issue around MRSA … and prevent the 457,800 the increase in of pressure ulcers before they are safety and efficiency. spread of the in- Number of hospital patients in pressure ulcers pressure ulcers is very important transferred between facilities. Since August, MPRO has been fection. 2006 who had pressure ulcers in health care fa- work,” Watson said. “It leads to ex- “If a patient in a nursing home identifying and recruiting health Overall, the noted as a secondary diagnosis cilities is not a care organizations for several tensive stays for patients and addi- has an area of redness, it is impor- tional costs to the system.” quality of care in surprise because quality improvement projects it is Southeast Michi- the population is tant to communicate that to a hos- beginning under a new three-year To reduce MRSA infections, pital so steps can be taken to pre- MPRO is working with 22 hospi- gan is relatively 245,000 aging. contract with the Centers for good for hospi- “We are get- vent it from developing into a tals statewide, including 12 in Number of hospital patients in Medicare and Medicaid Services, said tals, but a num- 1993 with pressure ulcers ting more frail pressure ulcer,” Watson said. Southeast Michigan, said Diane Robert Yellan, MPRO’s CEO. ber of Detroit- individuals com- MPRO also has an incentive for Smith, MPRO’s patient safety pro- “Our focus is on health care fa- area nursing ing into nursing hospitals and nursing homes to ject manager. cilities that are most in need of im- homes have homes,” she improve. If they fail to improve, “It can be reduced by hand provement,” said Yellan, a former been identified by Medicare for said. “The typical age used to be in MPRO could lose its contract, Yel- hospital administrator at Detroit washing,” Smith said. improvement, Yellan said. their 70s. Now they are in their 80s lan said. Since last year, Watson said, the Medical Center. “Detroit facilities have a little with multiple chronic illnesses. “We have been rated the third hospital association has worked “We are working with a subset different population” than the rest When they do get a pressure ulcer, best in the country (out of 30),” Yel- of hospitals on surgical care im- with hospitals to double the rate of of the state,” said Patricia Ander- the ability to heal takes more lan said. “In many respects this is provement, heart failure, pressure hand washing among employees. son, vice president of reimburse- time.” the most challenging (contract) be- ulcers and reducing staph infec- While MRSA once was consid- ment services with the Health Care Overall, the number of patients cause the expectations from CMS tions (methicillin-resistant staphy- ered a hospital-acquired infection, Association of Michigan, which rep- who were admitted to hospitals for have been very significantly en- lococcus aureus), which are be- Yellan said it recently has become resents many of the state’s 429 other reasons and also had pres- coming more prevalent,” he said. a growing community-acquired in- hanced.” nursing homes. sure ulcers noted as a secondary Under its contract, MPRO is ex- MPRO also is working with 60 fection problem. “They have more Medicaid and diagnosis increased 86 percent to pected to show an 8 percent im- physician organizations, includ- “This presents new challenges a younger population of people in 457,800 in 2006 from 245,600 in 1993, provement rate for pressure ulcers ing 28 in Southeast Michigan, to for hospitals and health care facili- their 50s and 60s who have more said the federal Agency for Health- in hospitals and nursing homes. improve preventive care programs ties,” he said. “There are efforts to chronic mental illness. As they care Research and Quality. Those through the use of electronic med- identify patients who may have age, they develop health prob- stays cost $11 billion. Nursing homes are expected to ical records. been at a facility before and diag- lems,” Anderson said. “The technique to reduce pres- have a 20 percent improvement for Nancy Vecchioni, MPRO’s vice sure ulcers is not rocket science,” physical restraint measures. president of strategic initiatives, Yellan said. “It is getting the pa- “CMS’ ultimate aim is to improve said quality data shows the nurs- tient up, keeping them clean, tak- patient outcomes and patient care, ing homes already have begun to ing care of incontinence issues.” but there also is a financial compo- MARKET PLACE make improvements. Hospitals also have an incentive nent,” Yellan said. “By getting the “The numbers are coming to reduce pressure ulcers. In No- right care for each patient, you save down,” she said. “Staffing is a big vember, Medicare began a policy money in the system.” ANNOUNCEMENTS & LEGAL SERVICES - IMMIGRATION issue because there is a lot of not to pay hospitals for treatment Jay Greene: (313) 446-0325, SERVICES turnover in nursing homes.” if patients developed pressure ul- [email protected] Antone, Casagrande & Adwers, P.C. BUSINESS SERVICES AV-rated Immigration Law Firm Firm’s Principal is an Adjunct Immigration Law WE SELL BUSINESSES Professor at MSU REAL Farmington Hills, MI 48334 Confidential & Professional Service. Phone (248) 406-4100, www.antone.com Specialize in Manufacturing, Distribution & Business -To-Business Service Industries. ESTATE Confidential Business Sale, Inc. WAREHOUSE ORGANIZATION Credit Union League moves www.ConfidentialBusinessSale.com Detroit Metro Office 313-221-9378 Get your warehouse organized and operating COMMERCIAL PROPERTIES efficiently with the help of the professional space planners at www.Shelving.com. Our trained BIRMINGHAM space consultants will put your space to work. to Livonia, expands in Lansing Prime Retail Location Call today 800-637-9508 for a free assessment Woodward & 14 1/2 Mile 33634-33644 Woodward Economy got you down? BUSINESS & 4300 square feet-can split 60 feet of frontage Troubled business looking for a partner? BY CHAD HALCOM gerty Road has been vacant in re- Call 313-886-4700 Broker-Owner INVESTMENTS CRAIN’S DETROIT BUSINESS cent months, and Adams said the We provide lawyers, accountants, INDUSTRIAL PROPERTY managers and money. move from owner to tenant means BUSINESSES FOR SALE To reduce costs without job cuts, 313.259.3458 x124 considerable cost savings. JET’S PIZZA FRANCHISES IN NORTHERN OHIO the Michigan Credit Union League “It worked out to be a win-win to AVAILABLE NOW Three operating stores with future territorial has sold its headquarters building make the move, partly for us to 4,000 to 100,000 sq. ft. FOOD SERVICE agreement. Call 586-412-0010 in Plymouth to rent a smaller downsize and partly to strengthen Also 10,000 & 25,000 sq. ft. EQUIPMENT & space in neighboring Livonia, its LOSE WEIGHT our position and presence in Lans- Free Standing Bldgs w/truckwells. With Our 100% Fresh Gourmet Meals MERCHANDISE CEO confirmed. At the same time, ing,” he said. 1 Mile from Metro Airport it expanded in Lansing. “We would be losing the rent REA CONSTRUCTION • Prepared Locally By Top Chefs OFFICE FURNITURE David Adams, • Delivered To Your Door! from a tenant who had already (734) 946-8730 president and • Guaranteed Fresh Taste! MUST SELL, OFFICE CLOSED moved out starting in March 2009, Desks $99, Chairs $39, Files $49, Partitions $50, Also Heavy Industrial CEO of the cred- and we wanted to consolidate with- www.GourmetEverydayDelivery.com Lateral Files $99, Cubicles, Office Phone Systems Land Available Call (248) 548-6404 or (248) 474-3375. it union league, out (layoffs).” www.reaconstruction.net said the organi- The league completed the move LEGAL SERVICES zation’s 110 em- last month and moved into a ployees all re- 10,000-square-foot location in Lans- INVESTMENT PROPERTY EXECUTIVE SEPARATION PACKAGE REVIEW main employed ing in mid-December. The two LYON TOWNSHIP/BANK OWNED Separation package review by expert employment law specialist including potential after the sale of moves increase the Lansing staff 12-unit rental townhouse project available. Get a great deal on this investment opportunity. benefit enhancement or wrongful termination case evaluation its 54,474- from less than 10 to about 25, while Contact Karen Shepherd at 248-290-5300 ext. 311 Adams Office or telephone/internet appointments within 48 hours of call or email square-foot of- 65 employees will work in Livonia fice building in Plymouth to Detroit and 20 will telecommute. Flexible fee arrangements WATERFRONT PROPERTY Edison Credit Union, though some Adams estimates the move will Reviews conducted or supervised by 4 Senior Counsel listed in Best Employment trim about $500,000 from the LARGE 1 ACRE LAKEFRONT LOTS - 15 min from Lawyers of America and Super Lawyers with more than 100 years of combined em- employees will telecommute. Novi/Ann Arbor on all sports lake in Brighton. ALSO, ployment law experience handling employee issues involving every major employer DECU has arranged for the league’s operating budget, includ- 4100 sf new Lakefront home ready for move-in 90 days. Discounts Available.Call 810-220-8060 in Southeast Michigan. league to take over the remaining ing an anticipated loss of $250,000 48 Acres with 250 feet of Lake Frontage Pitt McGehee Palmer Rivers & Golden-117 W. Fourth St., Suite 200, two years of its lease on 15,000 per year in rent when the Ply- Hunting/Equestrian/Estate/Investment/Develop Royal Oak Mi, 48067. square feet in Livonia. mouth tenant’s lease expired. Beautiful, pristine, no motors lake, Linden, MI $392,000 -‘08 closing possible (810)444-3510 Call, email or fax Elaine Hesano for an appointment or more information at Terms of the sale were not dis- Grubb & Ellis Co., Southfield, rep- ON ORCHARD LAKE 248.398.9800, fax 248.398.9804, [email protected]. Please visit our website closed. More than one-quarter of resented the credit union league in 4 bedroom ranch, 3 1/2 baths on at www.pittlawpc.com the league’s office space on Hag- the transaction. 1.4 acres premium lot. 248-335-0104 www.5081commerce.com 20080105-NEWS--0017-NAT-CCI-CD_-- 12/31/2008 4:57 PM Page 1

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 17 Maylong Group finds path to grow GPS business BEST DEALS, DEALMAKERS Involved in a merger, acquisition or expansion in 2008? BY CHAD HALCOM to prove yourself to some of the re- You may be eligible for the CRAIN’S DETROIT BUSINESS tailers by performance and possi- second annual Crain’s M&A bly move to in-store sales.” Awards contest. David Valade believes it isn’t Valade and company CEO Ming too late to be entrepreneurial in Crain’s Detroit Business and the Wang met about six years ago, Detroit chapter of the Association personal navigation devices, even when both were pursuing MBA de- for Corporate Growth will honor if much larger competitors think grees in the Eli Broad College of Busi- companies the growth in global ness at Michigan State and demand is slowing. University. individuals The president of OntheGrow After traveling to in the Rochester Hills-based Wang’s native China following Maylong Group L.L.C. On the Grow is a in 2006, they incorpo- categories: expects a happy holi- feature that will Ⅲ Best Deal appear in most issues rated Maylong and be- day season for the gan producing GPS of the Year: highlighting growing Under company, which products in mid-2007. companies, large and $100 should finish 2008 small. Know of a The company made with sales of roughly million and company you think its first sales after a $100 million or more. $10 million compared Crain’s should write November 2007 debut Ⅲ Dealmaker of the Year: M&A with less than $1 mil- about? Contact on Home Shopping Net- experts, lenders, CPAs, lion in 2007. Managing Editor work, but Valade said consultants and attorneys, Andrew Chapelle at A vast majority of business began to among others, are eligible. Maylong’s sales were [email protected]. grow in earnest after Ⅲ Best Woman or Minority in the last half of the COURTESY OF MALONG GROUP Maylong shared space Enterprise Deal. year, he said, accelerating in the fi- with other Wiley-licensed technol- David Valade and Ming Wang began producing a line of GPS products in mid- Ⅲ nal quarter. 2007. They expect to have 2008 sales of $10 million. Best Expansions: This is a new ogy companies at the Consumer category and can include physical Maylong sells GPS devices with Electronics Show in Las Vegas in and Dell Inc., they are doing busi- of slant on Maylong, it’s just a view plant expansions, new product the brand of “GPS Navigation for January 2008. ness in a global arena.” of the market as a whole.” lines, diversification of client Dummies” under a licensing That appearance generated Valade said he hopes that, at Garmin reported sales of more base and other similar activities agreement with Wiley Publishing business contacts that eventually nearly 200,000 unit sales, the com- than $800 million in the third-quar- that lead to job creation and/or Inc., publishers of the Dummies led to the CVS deal and online re- pany might be large enough to ter 2008 and revenue growth of economic growth. Two book series, and a manufacturing tail agreements with Walgreen Co., rank on the NPD Group Inc. monthly about 19 percent compared to the categories: Investments of less agreement with YFI Inc. to make Best Buy Co. and Kohl’s Corp. list of top-10 unit-selling GPS man- year-ago quarter. That growth than $50 million and $50 million or more. the devices in Shenzhen, China. The company plans to be an ex- ufacturers in early 2009. rate, Gartner said, is somewhat The company sells the largest hibitor at the next CES show But Ted Gartner, senior manager slower than previous quarters. Ⅲ Lifetime Achievement: Senior- level executive who has been share of its devices through a re- Thursday through Sunday and to of Olathe, Kan.-based Garmin Ltd. Maylong has 10 employees han- involved in significant tail agreement with Woonsocket, sell its GPS software for some cel- which regularly ranks No. 1 on that dling sales and some shipping and distribution in Rochester Hills. transactions and has made a R.I.-based CVS Pharmacy Inc. CVS lular phones starting in 2009. list, said the market may not be significant impact on the Devices range from the FD-220, carries the GPS systems at 6,400 lo- Wang said the use of a Chinese growing fast enough for newcomers community. selling at CVS for $90, to the larger cations in North America. company for manufacturing sim- anymore. Applications for the M&A awards But Valade estimates that at ply follows the business model of “The growth rate is slowing FD-435, which can sell for $244. can be found at times up to 40 percent of all sales other makers of popular gadgets. down off of some rates that were un- Valade said the company will try www.crainsdetroit.com/ have come through online retailers. “This is a global economy, and sustainable from a couple of years in 2009 to branch out from conven- nominate. The deadline for “Since it’s a technological de- to be competitive you have to be ago. You can’t discount the effect of tional navigation devices to a phone entering is Jan. 9. Winners will be vice, a lot of the buyers are pretty able to leverage global economic the global economy,” he said. that can use its navigation soft- announced at a strolling dinner to technically savvy and likely to do assets,” he said. “When you look at “We see the kind of market in the ware, and will attempt to reach a be scheduled in March. researching and buying online,” the most competitive companies next year or so that the sort of third- new retail deal with Target Corp. The Detroit chapter of the he said. “And the nice thing about and some of our own potential cus- tier makers will be getting out of Chad Halcom: (313) 446-6796, Association for Corporate Growth online retail agreements is you get tomers, like Apple (Computer Inc.) (GPS devices). That’s not any kind [email protected] is part of a global association of professionals involved in corporate growth, development and mergers and acquisitions. The local chapter was formed in 1984 and has about 270 members. For more information, $3B military vehicle work draws lots of local interest see chapters.acg.org/detroit. WHO ARE THE TOP CFOS? BY CHAD HALCOM “It would be great to see more of L.L.C., as an MRAP-ATV contender. suggested an increased deploy- CRAIN’S DETROIT BUSINESS the production work go to Michi- The military in October awarded ment may be in the offing. CFOs are often the unsung gan companies this time, I think three bidders, including GDLS, Steve Field, manager of media heroes of an organization’s Southeast Michigan companies we could use it,” he said. “But contracts on the next phase of de- relations for BAE Systems, said senior management team. These are turning out in force to see if whether that’s possible on this velopment on JLTV; that project is the company will at least make an leaders are grappling with budget pressure and they can take part in the develop- rapid timetable (for production) on hold after two of the losing bid- MRAP-ATV offering from its ment, supply chain or production increased red might be pretty tough.” ders filed protests in November. Sealy, Tex.-based Mobility and tape, and are on a defense contract estimated to Curtis is also vice president of “We are going to make an offer- Protection Systems offices. The contributing be worth $3 billion when awarded government and defense opera- ing, but … we have not made that Ground Systems division, based in to strategic in the spring. tions for Plymouth-based Prestolite decision on (specifics), he said. Pennsylvania and opening the planning in Potential bidders have until Electric Inc., which made starter Primary contractors mostly Sterling Heights facility, is finaliz- new ways. Monday to submit a formal writ- components for conventional have concluded production of ing a decision on whether to make Crain’s ten proposal to the Joint Program MRAPs and was one of the compa- MRAPs, but on Dec. 8 the Army re- a second BAE offering, he said. Detroit Office on Mine Resistant Ambush nies at the MRAP-ATV conference. quested proposals for a lighter, off- “Right now we don’t know what Business is seeking nominations Protected All Terrain Vehicles, at MRAPs are vehicles with spe- road-capable MRAP for the moun- (we’ll offer),” he said. for its third-annual CFO awards the U.S. Army Tacom Life Cycle Man- cial armor features to counteract tainous regions of Afghanistan. Another BAE proposal on the to give recognition to these agement Command in Warren. financial leaders. Winners and improvised explosive devices. Up to five MRAP-ATV contracts JLTV program, in cooperation finalists will be recognized at a A pre-solicitation conference in They have been ordered since 2003 could be awarded by mid-April, with Maryland-based Lockheed June event. To nominate December on MRAP-ATVs drew for heavy and urgent deployment with production orders to follow in Martin Corp., is on the table for the someone, visit 139 participants from the U.S. and in Iraq, and to a lesser degree June. Production could range from MRAP-ATV contract. www.crainsdetroit.com/ Canada to Selfridge Air National Afghanistan. a minimum 372 up to a ceiling of Curtis said the similarities be- nominate. Nominations must be Guard Base in Harrison Township, Sterling Heights-based General 10,000 vehicles, but the “most prob- tween JLTVs and the MRAP-ATV received by Jan. 5. of which 70 were representatives Dynamics Land Systems, one of the able” quantity is for 2,080. Both or “MRAP light,” might give the To be eligible, nominees must be of defense primary contractors, prime contractors on conventional GDLS and BAE Systems, which ex- Michigan-based companies which CFOs or hold an equivalent job. automotive suppliers, engineering MRAP vehicles, also sent repre- pects to move into a former TRW have worked on the JLTV proposal Judges will select winners based and design firms or advanced man- sentatives to the December confer- Automotive plant in Sterling a leg up as an MRAP-ATV bidder. on excellence in financial or other ufacturers in Southeast Michigan. ence and expects to make a bid on Heights this year, predicted 2,000- But the JLTV is so early in its de- corporate operational management. Nominees will be But companies with the best MRAP-ATVs as well by next week, 3,000 vehicles. velopment, the region may be at a considered for public companies, shot of winning up to five MRAP- said Peter Keating, vice president At a cost estimate of $1 million disadvantage as well. private companies and ATV production contracts are of communications at GDLS. or so per MRAP-ATV unit, with “With the production on such a nonprofits. probably those who produced their Like other local contractors, government equipment additions fast timetable, the projects that go Questions? Contact Jennette predecessors, the conventional GDLS is weighing the possibility to each, the total fleet could be forward need to be tooled up and Smith, assistant managing MRAPs, said Paul Curtis, presi- of using its Joint Light Tactical worth up to $3 billion. U.S. troops ready,” he said. editor/Focus, at (313) 446-1622 dent of the National Defense Industri- Vehicle proposal in cooperation in Afghanistan currently number Chad Halcom: (313) 446-6796, or [email protected]. al Association’s Michigan chapter. with Indiana-based AM General about 31,000, but the Pentagon has [email protected] 20080105-NEWS--0018-NAT-CCI-CD_-- 12/31/2008 5:13 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 5, 2009 Novi: Location, tax breaks help city realize commercial growth ■ From Page 3

bly the company’s single most suc- of geographic center for the De- package was approved for $320 mil- supplier and subsidiary of Berg- cessful property in the region. troit area and (other outstate) com- lion for the proposed Pavilions of amo, Italy-based Brembo S.p.A., The 1.5 million square feet of of- munities,” he said. “There’s a lot I think the appeal Troy, but that project awaits the the company announced in No- fice park space developed thus far of retail and rental, and it’s really “ outcome of other state-incentive vember it would instead move its was at roughly 94 percent occupan- not in the back yard of any one of is it’s a kind of requests. headquarters, research and de- cy late in the year, he said. New the Big Three, so it’s a bit more in- Elsewhere in Southeast Michi- velopment into MetroWest Technol- tenants in 2008 in Sosin’s proper- dependent. And it seems to attract geographic center for gan, only Detroit and Ann Arbor ogy Park in Plymouth by mid-2009. ties included The Art Institute of a lot of outside automotive re- attracted more 2008 economic-de- Pearson and Topouzian both Michigan with 35,000 square feet of search and development compa- the Detroit area. velopment incentives, at 12 and 11 said the city is known for being space, and 50,000 square feet for nies and new technology.” ” respectively, among 79 total deals tougher than its neighbors about Harman Becker Automotive Systems, Novi’s six state-approved tax-in- Matthew Sosin, in five counties. allowing for local property-tax in one of six economic-attraction centive packages, expected to gen- Northern Equities Group And Novi went on to lose one of abatements as a tool to retain jobs deals approved for Novi in 2008 by erate a total of $110.9 million in its six gains — a June deal for or to assist in state economic-at- the Michigan Economic Growth Au- private business investment, puts deals for $73.85 million and Brembo North America to invest $47 traction packages. But for the thority. it in a three-way tie for most Oak- Auburn Hills at six deals for $77.1 million and consolidate its head- most part, that has not offset its “I think the appeal is it’s a kind land County deals, with Troy at six million. A seventh state-incentives quarters. A California-based auto more appealing attributes. “We do have a property-tax abatement policy, but it’s more stringent than many others,” Pearson said. “For one thing, as a city you don’t want to cut your own future income by delving too far into that. For another, there are training grants and other forms of assistance to offer that can be more tailored to a compa- ny’s specific needs.” Christopher Quinn, founder and president of intellectual-property law firm Quinn Law Group P.L.L.C., said he founded the firm in Novi in 2002 primarily because he was a city resident, but he is now ideally located for easy access to innova- tion companies in the Ann Arbor ere’s to you. area and Oakland County. From a sole practitioner firm six years ago, the company had grown to 11 lawyers in January. Quinn said it had a staff of 18 at year’s end. “Like many firms in this field, I’m doing my best to diversify out of state — I just came from Cali- fornia and will go to Boston next week,” he said. “But Novi is just a great location for getting quickly to the airport, the University (of Michigan), to Troy, wherever. “Not more than a handful of my clients are in the city, but I’m near almost everyone.” Chad Halcom: (313) 446-6796, [email protected]

LAST CALL FOR 20 IN THEIR 20S NOMINATIONS Do you know a 20-something Thank you, commercial banking customers for choosing Huntington. Our steadfast who is someone to watch? Crain’s is looking for young dedication to helping customers bank successfully has earned us four Greenwich professionals who are making their awards for excellence in commercial banking. After 142 years of service we’re mark in the proud to be leaders in our industry. But we’re even more proud to be working region. in their We will with commercial banking customers who are leaders in theirs. Helping you build publish successful businesses is not as much a job as an honor. our 2009 20s class of Twenty 20 in their 20s in the April 20 issue. These entrepreneurs and creative thinkers may not have made their first million, but they’re living proof that there is work under way by young people to counter the region’s brain drain. Visit crainsdetroit.com/nominate for our online form. 1-866-921-4990 | huntington.com Nominations must be received by Jan. 23. Contact Michelle Darwish at (313) 446-1621 or [email protected] with Greenwich Associates is a leading worldwide strategic consulting and research firm specializing in financial services. Excellence award selection was based upon the results of the 2008 Middle Market Business Banking Study conducted by Greenwich Associates. Banks selected for an award had to have a significantly different percentage of “excellent” ratings than the mean for all banks at a 90% confidence level. The Huntington National Bank is an Equal Housing Lender and Member FDIC. ,® Huntington® questions about the process. and A bank invested in people® are federally registered service marks of Huntington Bancshares Incorporated. ©2008 Huntington Bancshares Incorporated. 20080105-NEWS--0019-NAT-CCI-CD_-- 12/31/2008 5:23 PM Page 1

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 19 TARP: Michigan banks feel passed over ■ From Page 1

to be named because their applica- business in Michigan,” said David Inc. of Farmington Hills, $7.5 mil- tions for TARP funding are still Girodat, president and CEO of lion. pending, fear the Treasury is hesi- Fifth Third Bank, Eastern Michi- “I’m not frustrated with the tant to invest in state banks be- gan. “Like most other banks, we process. I didn’t expect to be on top cause of troubles in the auto indus- are selective with regard to certain of the list,” said Robert Krupka, try and the local economy, which distressed sectors. ... We are still president and CEO of New Liberty. has been in recession far longer pursuing qualified deals in Michi- “I find it really ironic that they than other states. gan.” really need banks like mine to “That’s a valid concern,” said “We are working closely with make loans at the street level, but Don Mann, regulatory liaison for our federal regulators to ensure we’ll be the last ones to see any the Lansing-based Michigan Associ- that Michigan institutions get benefit,” said one banker, who ation of Community Bankers and a their fair shake in the TARP appli- asked not to be named because his bank regulator for the state of cation process, and we have every application was still pending. “It Michigan from 1970 to 2002 in what indication that is the case,” said has you scratching your head. My is now called the Office of Financial Jason Moon, public information clients are small businesses and and Insurance Regulation. officer for OFIR. small businesses provide a big “Regulators aren’t going to talk “We think we’re getting hit chunk of the employment in this about it. What they’ll say is — and harder by the federal regulators country.” I know because I was a regulator than the rest of the country,” said “We’re small. They round num- — ‘we treat all our children the Michael Kus, managing member of bers like us off,” said another same, we apply the metrics fairly.’ the Auburn Hills law firm of Kus, banker. “Basically, Michigan is ir- The same old baloney. The truth is Ryan & Associates P.L.L.C., which relevant.” I don’t hold out much hope for our specializes in legal issues affecting “I’m afraid the Treasury is bi- community banks getting much community banks. “I hate to use ased toward big banks,” said a TARP money because of the auto the word ‘redline,’ but there is a third banker. “They’re happy to crisis. The regulators won’t say it feeling that Michigan has been let the little ones fail.” publicly. They’re saying it private- written off.” “It will be small banks that step ly, I know they are.” “We’re all hoping at some point forward and make loans in Michi- Mann said that national and re- they will unleash some money to gan to make the economy grow. gional banks that have received Michigan bankers,” said Kus, who Big banks aren’t making loans in TARP funding won’t lend much of estimated more than half of Michi- Michigan,” said Terry McEvoy, an it here, if any. He said they all gan’s 136 state chartered banks equity analyst who covers Mid- have sharply reduced the number have applied for TARP funding. west banks for Oppenheimer & Co. of commercial lenders and are cut- “The large institutions have ab- Inc. of New York. ting long-time commercial cus- solutely stopped lending in Michi- He said at least one major re- tomers loose, even some of those gan. It’s the community bankers gional bank in Michigan he de- with good credit. who will be making loans to small clined to name pays bounties to its “The big banks are all saying, businesses, and they’ll be ham- commercial bankers for cutting ‘Look at the auto industry. We’re strung if they don’t get TARP fund- customers loose and shrinking the pulling out,’ ” he said. ing.” portfolio. “That’s reflective of In December, the Associated Publicly traded banks had to ap- what is going on with big banks in Press contacted the 21 banks that ply for TARP money by Nov. 14. that market,” he said. had received at least $1 billion in Private banks had a deadline of McEvoy said that the $3 million TARP money to ask them their Dec. 8. Banks headquartered in a small bank in Michigan might be plans for the money and if any of it Southeast Michigan that have ap- hoping to get “is next to nothing had been spent, on what? None plied include Dearborn Bancorp Inc., when they’re talking about releas- provided specific answers. $28 million; Mt. Clemens-based ing the next $350 billion in bailout Scott Talley, a vice president of Community Central Bancorp Inc., money, but that can really effect communications for Comerica, $12.6 million; New Liberty Bank of positive change on Main Street. said that the bank will use its Plymouth, $2.8 million; Troy-based But community XYZ is not a prior- TARP funding in all its existing Flagstar Bancorp Inc., $260 million; ity.” markets, including Michigan. PSB Group Inc. of Madison Heights, Tom Henderson: (313) 446-0337, “Fifth Third Bank is open for $11 million; and Paramount Bancorp [email protected]

Pipeline: Inland Pipe grows nationally ■ From Page 3

quarters. The company is now in a land, Yothers said. named CEO in August. 50,000-square-foot building com- “That put them into the national Growth is also expected in sub- pared to its former 10,000 square limelight,” he said. stance as well. The company is feet. The underground pipe repair looking for new ways to work on The building was acquired and practices have become a hot com- water lines, which are in as poor of renovated for $1 million, Cutillo modity for municipalities looking a condition nationally as sewer said. Dan McCleary of CB Richard to fix aging infrastructure at a lines. Ellis was the broker in the transac- cheaper price, said Scott Ringler, “Potable water is the next fron- tion. an associate at Rochester Hills- tier,” he said. “There is very little In the next 12 months, Inland based Giffels-Webster Engineers Inc., investment or technology put into will hire 20 employees for the new who consults local governments replacing those lines.” facility, since it has space that will on engineering services. The future of the company, Cu- be used for manufacturing the Using a Cured In Place technolo- tillo said, is based on strong rela- sleeves inserted into sewer lines. gy can cost an average of $50 per tionships with clients and acquisi- In the past, the sleeves were either foot compared to $100 to $150 per tion of new technologies. purchased or shipped from Hous- foot to dig up the ground and re- “Our efforts now are looking at ton. place the lines, not to mention deal the emerging technologies There are only four or five ma- with the risk of digging up the around the world, but also look- jor players in the Cured In Place ground, Ringler said. ing at how we put them in our business, and Inland has moved “It’s a great process, especially portfolio,” he said. “Because at from being a regional company to in cities and when you need to go the end of the day, there are a lot a national company, said Jeff through back yards where there of contractors out there, but not a Yothers, director of Paoli, Ind.- are pools and trees,” he said. lot of solution providers, and based Inliner Technologies L.L.C. “There’s a ton of demand right that’s a tremendous attribute for Inland’s acquisition of RePipe now.” our growth compared to other Inc. in 2007 with its Houston head- Future growth will be into the companies.” quarters and California and Flori- Northeast and the Mid-Atlantic re- Daniel Duggan: (313) 446-0414, da offices was a major move for In- gions, said Cutillo, who was [email protected] 20080105-NEWS--0020-NAT-CCI-CD_-- 12/31/2008 4:59 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 5, 2009

Lions: Organization revamps its business playbook YES, THERE’S A BRIGHT SIDE ■ From Page 3 Losing has upsides, even in Detroit. The coaching dismissals and the playoff victory since 1957 and just winless season give the team 15 winning seasons in the past 50 opportunities to spark renewed years. BAD COMPANY interest among fans. The team says it’s deploying the Here are the other National Media speculation is in high gear plan to salvage the value of its tar- Football League teams that have and Internet message boards are nished brand image, restore hope had winless seasons: teeming with debates on a new among season ticket-holders and Cincinnati Reds: 0-8 in 1934 coach, and the 0-16 record improve what happens each Sun- Chicago Cardinals: 0-10 in assures the Detroit Lions of the day on the artificial turf at Ford 1943 No. 1 overall selection in April’s college draft (and another first- Field. Chicago/Pittsburgh merged But like so many schemes for so round pick, thanks to a trade last team: 0-10 in 1944 year with Dallas). many catastrophes in Detroit, Dallas Cowboys: 0-11-1 in 1960 there are more questions than an- For as bad as the Lions have Tampa Bay Buccaneers: 0-14 in been, the team hasn’t had the No. swers. And jaded Lions fans know 1976 1 overall pick since 1980. Detroit that while the National Football Baltimore Colts: 0-8-1 in strike- took Oklahoma running back Billy League is constructed to permit shortened 1982 season Sims that year, and he earned quick turnarounds — Miami was three Pro Bowl bids in his five 1-15 a year ago and is in the play- years with the Lions. offs this year — there’s no sure-fire — remains unclear. There’s a brewing consensus that formula for winning. “We’re in good shape salary cap- the Lions need to draft a wise. We have flexibility,” said quarterback to better operate an Tom Lewand, whose promotion NATHAN SKID/CRAIN’S DETROIT BUSINESS offense that has a legitimate star First steps Tom Lewand (left), the team’s new president, and Martin Mayhew, general in wide receiver Calvin Johnson. from COO to team president was manager, discuss organizational changes during a press conference last week. Cosmetic changes, such as mar- made in the same announcement Possibilities include University of Oklahoma passer (and Heisman keting efforts or even uniform as Marinelli’s firing. not as much as most. Forbes said. Trophy winner) Sam Bradford and changes, are possible and have Lewand and general manager “To the extent that attendance the University of Georgia’s Matt been successfully done in other Martin Mayhew both said last falls off, this will impact ticket rev- Brand recovery Stafford. NFL markets, but the team has de- week the team will not pursue enue if tickets are not sold, but will While the Lions fruitlessly labor Yet successful quarterbacks — clined to discuss them in detail. high-priced free agents and in- have a bigger impact on conces- the marquee players of the NFL — in the shadow of the Tigers, Red One change the team is happy to stead will rebuild the team sion revenue even if the tickets are have proven difficult for the Lions Wings and Pistons, they also bene- talk about is the freeze on season- through the draft while targeting sold due to no-shows,” Phillips to unearth. Greg Landry in 1971 ticket prices announced two days free agents who come with a small- said. fit from those teams’ success, was Detroit’s last Pro Bowl signal before the 31-21 loss at Green Bay er price tag. The Lions rank in the lower which has prevented a deeper loss caller, and the intervening years are littered with the likes of Chuck that cemented Detroit’s dubious That may be out of need as much third of merchandise sales on of brand value among fans and honor of being the first NFL team as philosophy. sponsors. Long, Andre Ware and Joey nflshop.com, the league said. The Harrington. to lose all its games since the Detroit reportedly paid more NFL declined to provide a specific But how much damage has been league moved to the 16-game than $15 million this season to done? “In order to win, you have to have rank, but it did say the team has a quarterback that you can identify schedule in 1978. players no longer on the roster — never been in the top 10 since mea- “There’s no definitive way to with, that has leadership, An announcement that single- the result of contract and draft de- surement began in the 1990s. say, ‘What’s the effect been?’ ” said charisma and that extra game ticket prices will be frozen cisions by Lewand’s predecessor, Financial news Web site Haynes Hendrickson, senior vice something that people rally or reduced is expected soon, Ray- Matt Millen, NFL insiders say. forbes.com valued the team at $917 president of Haddonfield, N.J.- behind,” said Eric Hipple, who mond said. That’s important be- The Lions’ 2008 payroll of $95 million, 24th among the NFL’s 32 based Turnkey Sports & Entertain- quarterbacked the Lions from cause it’s expected that there will million was $11 million smaller franchises. When Millen was ment Inc., which measures brand 1980-89. “It seems like we’re always trying to match up (a be a lot more single-game season than the year before and ranked hired, the team was valued at $423 effectiveness and values of pro quarterback) to a system, and it tickets available in 2009 because 26th of 32 teams, according to USA million, meaning the Lions’ value sports teams. of people not renewing season Today’s online NFL salary data- doesn’t fit what we’re trying to has grown 116 percent since the be- The team continues to sell cor- do.” tickets. base. ginning of his tenure. porate sponsorships and advertis- Fans who wanted to see the 2008 The 2009 salary cap, which is All draft and personnel decisions The league’s most valuable ers still buy time during broad- will be made by Martin Mayhew, team play needed to buy tickets — based on a complex formula dictat- team, the Dallas Cowboys, over the casts. Suite sale revenue was down who was promoted last week to because five of the team’s eight ed by league revenue and the play- same time grew 115 percent to $1.6 6 percent this season compared full-time general manager from home games failed to sell out be- ers’ collective-bargaining agree- billion from $743 million. with 2007, Raymond said, which he interim general manager. fore the league’s local television ment, is believed to be about $123 The team has disputed Forbes’ called encouraging because of the Mayhew, along with owner William blackout deadline. million. annual figures, but it declined to Clay Ford Sr. and team president The Lions have repeatedly de- ugly local economy. Yet even with a offer its own num- Tom Lewand, will also decide on a clined to say how many season half-empty stadi- While times are tough economi- new head coach in the coming bers. ticket-holders they have, but the um, the Lions are cally, the success of the other weeks. Ford, then box scores after the last few believed to have There are so teams has meant Detroit remains a — Bill Shea chairman of Ford games at Ford Field listed about plenty of cash to “ city fixated on sports, Hendrick- Motor Co., paid 49,000 paid attendance in a 65,000- pay players be- many elements to son said. If the other teams were $4.5 million for seat stadium that appeared far cause NFL teams all consistent losers, the interest the brand, but the team in 1964. emptier. benefit from rev- might fade and further erode the OOTHLESS TIMELINE A year ago, the team raised tick- enue sharing, The team is a sep- season-ticket base. T et prices. The average Lions ticket thanks to multi- winning is the arate entity from “As soon as the Lions turn it The Detroit Lions’ march to infamy any ownership now costs about $72, the same as billion-dollar tele- around, they’ll be just as passion- is littered with dubious statistics: biggest factor. stake in the car the average NFL ticket. And that vision deals. The ate for it,” Hendrickson said. “In Last victory: 24-20 over Kansas ” company. was after a 6-2 start collapsed into salary cap is de- that marketplace, fans retrench City on Dec. 23, 2007. That’s a Haynes Hendrickson, The team’s one- a 7-9 season. signed to level the and say ‘We’re gonna move for- stretch of 372 days as of the last Turnkey Sports Entertainment Inc. year growth from game of the 2008 regular season. The team plans new ticket pack- playing field for ward and get beyond this.’ Mar- 2006 to 2007 was Last winning season: 2000 (9-7) ages that involve multiple seats smaller-market kets with all poor performers, peo- and concession deals, Raymond teams — and that fifth-worst in the Record since 2000: 31-97 NFL, and the team’s operating in- ple might tune out sports a little said. has shielded the Lions from finan- bit.” Last division title: 1993 (NFC come, defined by Forbes as earn- Central) “That will serve as the founda- cial disaster. In a Turnkey marketing survey tion of our advertising and mar- “While winning or losing can ings before interest, taxes, depreci- Last playoff victory: Jan. 5, 1992, of 12,000 fans conducted in March keting campaign in 2009,” he said. have a material impact on revenue ation and amortization, was a 38-6 victory at the Pontiac in 47 U.S. and Canadian markets “We’re going to have to offer a lot streams, it is also somewhat mar- negative $3.5 million in 2007. In Silverdome over the Dallas Cowboys. and released Dec. 1, Ford ranked of extra value for our season tick- ket specific (i.e. some teams sell 2006, the operating revenue was Last championship: 1957 (A 59- last among North America’s 122 et-holders.” out regardless of performance) and negative $2 million. In 2005, it was 14 win over the Cleveland Browns) the presence of shared league rev- $16 million in the black. major-league owners. Last Pro Bowl quarterback: Greg enues provides some cushion,” Revenue in 2007 was $204 mil- The study’s metrics also indicat- Landry (1971) The money wrote Jeff Phillips, managing di- lion, 26th in the league, up from ed the Lions as a brand has suffered Last “winning” full-time head The Lions know cheaper tickets rector of Stout Risius Ross’ Wash- $189 million the year before. The somewhat, making the turnaround coach: A career winning won’t persuade many fans to come ington, D.C., office, in an e-mail to Super Bowl champion New York Gi- plan all the more important. percentage above .500: Joe back if the team continues to lose. Crain’s. The Southfield-based fi- ants’ 2007 revenue was $214 mil- “There are so many elements to Schmidt, who went 43-34-7 (.558) from 1967 to 1972. The surest tonic to the team’s woes nancial advisers do valuations of lion, Forbes said. the brand, but winning is the is to win games — something that sports teams and stadiums as part Detroit is among just 13 of the biggest factor,” he said. “They Coaches since 2000: Six (Bobby Ross, Gary Moeller*, Marty have an opportunity to make some will require a lot of new players. of their business. NFL’s 32 teams not worth at least $1 Mornhinweg, Steve Marriucci, Dick How much salary-cap room the Where losing hurts is tickets, billion. It’s also responsible for a significant differences in the Jauron* and Rod Marinelli). team will have to sign free agents merchandise sales, concessions, large portion of Ford Field’s $440 mindset of (the) fan base.” * Interim coach in the spring — already a chal- suite sales and sponsorships. million construction cost, which Bill Shea: (313) 446-1626, lenge because of the losing stigma Hence, the team makes money, but further affects the team’s finances, [email protected] 20080105-NEWS--0021-NAT-CCI-CD_-- 12/31/2008 5:06 PM Page 1

January 5, 2009 CRAIN’S DETROIT BUSINESS Page 21

NAIAS: Auto show taking straightforward approach www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] car-loving world. show will top the SLR Stirling MANAGING EDITOR Andy Chapelle, (313) 446- “I think timing for our show this Moss edition created by Mercedes- 0402 or [email protected] year is impeccable from the stand- Benz/McLaren. To replicate 1950s Organizers hope concerts ASSISTANT MANAGING EDITOR/FOCUS Jennette Smith, (313) 446-1622 or [email protected] point that so much has happened racing cars, the production SLR BUSINESS LIVES EDITOR Michelle Darwish, (313) 446-1621 or [email protected] in the last half-year in regards to Stirling Moss has neither a roof COPY DESK CHIEF Gary Piatek, (313) 446-0357 change and everything that’s go- nor a windshield. or [email protected] will spur preview ticket sales GRAPHICS EDITOR Nancy Clark, (313) 446-1608 ing on,” said Rod Alberts, execu- What follows is a rundown of or [email protected] tive director of the NAIAS. “I what the Detroit 3 plan. For a com- BY SHERRI BEGIN WELCH sold about 50 percent to 60 per- COPY EDITOR Vic Doucette, (313) 446-0410 think the stage we have set after pany-by-company rundown of sig- or [email protected] CRAIN’S DETROIT BUSINESS cent of the 15,000 tickets avail- DATA EDITOR Anne Marks, (313) 446-0418 or everything has occurred in the last nificant world debuts at the De- able. [email protected] year is an opportunity for manu- Two additional concerts may WEB GENERAL MANAGER Alan Baker, (313) 446- troit show, see That’s about two-thirds the 0416 or [email protected] facturers to put their best foot for- www.crainsdetroit.com. be just the ticket to increase at- amount of charity preview tick- WEB EDITOR Christine Lasek, (313) 446-0473, ward, to show where they’re head- tendance at the North American In- [email protected] ets typically sold by this time, Al- WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) ed.” ternational Auto Show charity pre- berts said. 446-0403, [email protected] Some automakers have reduced view. RESEARCH ASSISTANT Joanne Scharich, (313) Many of the ticket purchasers 446-0419 their budgets for the show, and the The next two weeks will tell, in past years were automotive EDITORIAL SUPPORT Anita Duncan, (313) displays will be less extravagant show organizers said late last 446-0329 suppliers or the car makers NEWSROOM (313) 446-0329, FAX (313) 446- than in years past. Instead, Alberts week. themselves, and they are still 1687 TIP LINE (313) 446-6766 and other show officials say the For the second year in a row, buying, he said. But they have REPORTERS tenor of the auto show will be busi- the NAIAS has added a concert — limited budgets now for charita- Ryan Beene: Covers auto suppliers, steel, higher ness-oriented and straightforward. by the Doobie Brothers this year ble events. education. (313) 446-0315 or [email protected] “That to me is kind of the — following the Jan. 16 charity Daniel Duggan: Covers retail, real estate and The 2010 Ford Mustang goes on sale “We truly have to get more hospitality. (313) 446-0414 or mantra of things to come,” Alberts preview for attendees of the [email protected] in the spring. companies willing to buy and in- said. “It’s not about extravagance fundraiser. Jay Greene: Covers health care, insurance and the vest in charity preview and more environment. (313) 446-0325 or now, its about taking what you New this year is an additional individuals and maybe a change [email protected]. Ford to unveil Taurus, Shelby GT500 Chad Halcom: Covers law, non-automotive have and doing the best you can concert by preteen heartthrobs on our demographics a bit,” he the Jonas Brothers, two days lat- manufacturing, defense contracting and Oakland with it and making it efficient and Ford marketers say the compa- said. To that end, NAIAS expect- and Macomb counties. (313) 446-6796 or in some ways economical, but en- er on Jan. 18, again for attendees [email protected]. ny will protect the budget for NA- ed by today to launch a Facebook joyable and able to fit your of the charity preview. Tom Henderson: Covers banking, finance, IAS in hopes of making a big page. technology and biotechnology. (313) 446-0337 or lifestyle.” “We’re just trying to find a [email protected]. splash among the Detroit 3. Ford It might not be this year that a Joe Serra, NAIAS senior co- way to give attendees more val- Nancy Kaffer: Covers the city of Detroit, Wayne will unveil one of its most impor- large number of the younger gen- County government. (313) 446-0412 or chairman, said he expects there to ue,” said Rod Alberts, executive [email protected]. tant products of the year: the re-en- erations turn out, but Alberts be a larger media presence at the director of the Detroit Auto Dealers Bill Shea: Covers media, advertising and gineered and restyled 2010 Taurus marketing, entertainment, the business of sports, show compared to last year. Association and the NAIAS. hopes for more of them to attend large sedan. in the next two to three years. and transportation. (313) 446-1626 or On average, about 6,000 media Styling changes for the next-gen- Charity preview is all about [email protected]. The 11 charities that directly Nathan Skid: Multimedia reporter. Also covers the members attend the Detroit auto eration Taurus are expected to be the kids and raising money for food industry. (313) 446-1654, [email protected]. benefit from the charity preview show. Serra says that as of last extensive. Ford’s goal: Make the the charities, “but we know in Sherri Begin Welch: Covers nonprofits and and the other dozen or more that services. (313) 446-1694 or [email protected] week, about 3,600 media members car lower and sleeker. this day and age everyone is receive allocations through the LANSING BUREAU have registered, up from about The company also will discuss checking more out before they Detroit Auto Dealers Association Amy Lane: Covers business issues at the Capitol, 3,500 at the same time last year. its electric-vehicle strategy for the write the check” for the $400 tick- telecommunications and utilities. (517) 371- Charitable Foundation are also try- 5355, FAX (517) 371-2492, [email protected]. or “We’re up in both domestic and coming decade and reveal the 2010 ets, he said. 115 W. Allegan, Suite 220, Lansing 48933. ing to reach new prospects for international (media),” he said, Mustang Shelby GT500, which will “The fact that we’ve got these ADVERTISING adding he expects final registra- go on sale this spring. cross-generational attractions. … the charity preview, said Tom Ri- ADVERTISING DIRECTOR Marla Downs, (313) tion totals to be higher than last I think it’s going to create addi- opelle, the Southfield-based state 446-6032 or [email protected] Ford will give some specifics SALES INQUIRIES: (313) 446-6052; FAX (313) year. “If you think about it, from about its electric-vehicle plan. In tional interest in getting people director of the March of Dimes and 393-0997 all the buzz and attention (on the to come down,” Alberts said. chair of a group representing the ADVERTISING SALES Jeff Anderson, Terri 2010, the company will launch an Engstrom, Matthew J. Langan, Tamara Rokowski, auto industry), it makes some electric van aimed at commercial The show’s 2009 senior co- charities benefiting from the pre- Cathy Ross, Dale Smolinski sense.” chairman, Joe Serra of Serra Auto- view. WESTERN ACCOUNTS Ellen Mazen (Los Angeles) fleets. The vehicle will be a version (323) 370-2477 During media preview days, the of the Transit Connect, the small- motive in Grand Blanc, last Fri- Sherri Begin Welch: (313) 446- CLASSIFIED ACCOUNT EXECUTIVE Greg horde of reporters descending on est member of Ford’s European day estimated the NAIAS had 1694, [email protected] Evangelista, 313-446-1655 Detroit will see about 50 model de- MARKETING MANAGER Irma Clark Transit van family, company in- EVENTS MANAGER Nicole LaPointe buts, about 85 percent of which siders say. A gasoline version of 21 mpg city, 30 mpg highway and is ger coupe. MARKETING PROJECTS MANAGER Jennifer Dunn will be international. the Transit Connect will go on sale estimated to go from 0 to 60 mph in Chrysler says the first produc- MARKETING ARTIST Sylvia Kolaski “We’re limited to the number of SALES SUPPORT Suzanne Janik, Andrea in the United States in 2009. 9.5 seconds. tion vehicle from its electric ef- Beckham, YahNica Crawford unveilings you can do, just be- Ford will provide details about forts will arrive in 2010, but it isn’t CIRCULATION Candice Yopp, Manager. cause you only have so much an electric sedan scheduled to go saying which one. PRODUCTION MANAGER Wendy Kobylarz Chrysler turns green with ENVI PRODUCTION SUPERVISOR Larry Williams, time,” Serra said. “The key is not on sale in 2011. That car may be (313) 446-0301 the quantity, but the quality of the based on the Ford Focus compact A year ago, Chrysler brought a Cadillac downsizes SRX CUSTOMER SERVICE introductions, and with 85 percent sedan. herd of steers to the Detroit auto MAIN NUMBER: Call (888) 909-9111 or write being international, I think that show to herald the global launch of If size matters, the redesigned [email protected] SUBSCRIPTIONS $59 one year, $98 two years. speaks volumes.” the 2009 Dodge Ram 1500 pickup. 2010 Cadillac SRX should hit the Out of state, $79 one year, $138 for two years. For the most part, technology Chevy: Right time for crossover Now Chrysler is fighting for sur- Outside U.S.A., add $48 per year to out-of-state sweet spot occupied by the highly rate for surface mail. Call (313) 446-0450 or will stir the talking. All eyes likely Chevrolet will tout 30-mpg fuel vival. It must show it has a plan for successful Lexus RX series. (888) 909-9111. will focus on the Toyota stand. De- a more fuel-efficient future. SINGLE COPIES: (888) 909-9111 or contact economy when the restyled, re-en- The new Cadillac crossover Karen Boykin, [email protected]. spite plummeting gasoline prices, Instead of livestock and horse- gineered 2010 Equinox crossover seats five, like the RX, and is a REPRINTS: Call (800) 494-9051, Ext. 144 , or the spotlight will be on the unveil- goes on sale next summer. power, Chrysler will show off the write [email protected]. mere four inches longer than TO FIND A DATE A STORY WAS PUBLISHED: ing of the next-generation Prius Ed Peper, General Motors’ latest versions of the electric vehi- (313) 446-0367 or e-mail [email protected]. Lexus’ No. 1 seller. The SRX also hybrid and, especially, a battery- North American vice president of cles it unveiled in September. has front-wheel drive, like the RX. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY powered subcompact that pre- Chevrolet, called the crossover Back then, there were three vehi- CRAIN COMMUNICATIONS INC. views Toyota’s upcoming global segments important “because the cles: the Chrysler EV, a gasoline- All-wheel drive is optional. CHAIRMAN Keith E. Crain city car. Once asked why the current gen- PRESIDENT Rance Crain market for both compact and mid- electric version of the Town & SECRETARY Merrilee Crain Toyota is not alone in showcas- size crossover vehicles has grown Country minivan; the Jeep EV, a eration SRX wasn’t successful, GM TREASURER Mary Kay Crain ing technology. Honda will unveil Executive Vice President/Operations steadily since 2003. Both of these gasoline-electric Wrangler; and Vice Chairman Bob Lutz blamed William A. Morrow a production hybrid sedan, the segments are forecast to continue the Dodge EV, an all-electric the vehicle’s size — it is too big Group Vice President/Technology, Manufacturing, Circulation 2009 Insight. Mercedes-Benz will their growth trends in the next few sports car. All are products of the and it seats seven. The 2010 SRX is Robert C. Adams introduce alternative powertrains years, and Equinox gives Chevy a company’s ENVI electric car unit. about five inches shorter than the Vice President/Production & Manufacturing and a concept that might be the Dave Kamis volume player in this very critical Chrysler will display at least 2009 model, and seating is reduced Corporate Director/Circulation next-generation B class. The market.” three vehicles. In contrast to GM’s Patrick Sheposh by two. G.D. Crain Jr. Founder (1885-1973) Chrysler, Dodge and Jeep brands strategy with the Chevrolet Volt, Through November, Chevrolet The SRX will be the first Cadil- Mrs. G.D. Crain Jr. Chairman (1911-1996) each will offer concepts that fea- had sold 61,700 Equinox units. In which is to design a new car for the EDITORIAL & BUSINESS OFFICES: lac in recent years without a V8 op- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) ture alternative powertrains. Ford 2007, 89,552 Equinoxes were sold, electric powertrain, Chrysler’s tion. The V8 fell victim to upcom- 446-6000 will be talking about electric-pow- down from 113,888 in 2006. plan is to save money by putting a Cable address: TWX 248-221-5122 AUTNEW DET ing fuel economy regulations and CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 ered vehicles. “We’re going right after the gasoline-electric powertrain in ex- is published weekly except for a double issue the But not all the talk will be about isting vehicles. unpredictable gasoline prices. third week of January, and a double issue the Honda CRV and Toyota RAV4,” fourth week of August by Crain Communications being green. Buick has redesigned Peper said at a press briefing last The exception may be Dodge. Ryan Beene: (313) 446-0315, Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional the LaCrosse sedan, Ford has rein- month. “That is what this vehicle The Dodge EV shown in Septem- [email protected] mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation vented the Taurus, and Cadillac was designed to do.” ber was a Lotus-derived electric Rick Kranz is product editor for Department, P.O. Box 07925, Detroit, MI 48207- has recast the SRX crossover. sports car. Look for the show ver- Automotive News. AN reporters 9732. GST # 136760444. Printed in U.S.A. Peper said fuel economy is the Entire contents copyright 2008 by Crain And for those who were born to top priority for crossover buyers. sion to have more Dodge styling Amy Wilson and Bradford Wernle Communications Inc. All rights reserved. be wild, nothing at the Detroit also contributed to this story. Reproduction or use of editorial content in any The Equinox gets an estimated cues and possibly be a four-passen- manner without permission is strictly prohibited. 20080105-NEWS--0022-NAT-CCI-CD_-- 12/31/2008 4:56 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 5, 2009 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEKS OF DEC.20-31

share in Michigan, it will $6.6 million in the expansion with the U.S. Department of run state PR operations out GMAC receives and create 275 direct jobs. Transportation that it was Bus biz gets of Chicago. ForeSee Results uses the seeking to delay startup of University of Michigan’s its planned Detroit-Shang- $5B bailout, American Customer Satis- hai nonstop from March 25 See TDs in 3-D at MJR faction Index to measure to June 3 and to delay a pro- boost from For $20, anyone who online customer satisfac- posed daily Seattle-Beijing wants to watch Thursday’s falls short on tion for its clients. service by a year from college football national March this year to March championship game in 3-D 2010, the AP reported. can do so at three local MJR capital goal Court reinstates DPS tax suit Detroit is now measur- inauguration Digital Cinemas. A lawsuit seeking re- ing radio listenership by he U.S. Treasury De- And yes, you’ll need to funds of millions in taxes portable, cellphone-size me- partment said it will wear special glasses to see paid to Detroit Public Schools ters rather than the tradi- arack Obama support- “Tour buses are the T give $5 billion to it, but the ones provided in 2002-2004 was reinstated tional diary method, ac- er Lamar Gray has safest and most economical GMAC Financial Services L.L.C., won’t be the funky red-and- Dec. 23 by the State Court of cording to Arbitron Inc. B more than one rea- way to go,” Gray said. “In the financing arm of General blue lenses from the 1950s. Appeals. The Federal Reserve son to be happy his candi- Detroit, the public doesn’t Motors Corp., in a move ex- Instead, they’re lightweight Briggs Tax Service L.L.C. Bank of Chicago and the date won. utilize that as much be- pected to stave off a bank- polarized glasses for use state’s Office of Financial and Gray, a commercial pho- cause everyone has their ruptcy protection filing at sued DPS, the Board of Educa- with digital high-definition Insurance Regulation an- tographer, operates a part- own transportation. the company but also limit- tion, city of Detroit and the time busi- But once they expe- ing GM’s control over it, the Wayne County Treasurer, nounced Dec. 22 that Farm- ness rience a ride on a Associated Press reported. charging an 18-mill non- ington Hills-based Michigan organiz- motor coach, you The government will homestead property tax Heritage Bank entered into a ing bus get repeat busi- then receive preferred levied for those years had ex- written agreement with reg- tours, ness.” shares that pay an 8 percent pired and was not approved ulators on Dec. 16 that re- South- Both men began dividend and warrants to by voters in a timely fashion. quires the bank to improve field- booking rooms purchase additional shares its internal policies and based more than a month in return for the money, the OU plans health, research hub shore up its balance sheet. Lamar’s before the election, department said. The University of Michi- Travel. and Gray said his Treasury also said it will Oakland University plans to gan-Dearborn School of Man- Bus Obama prices have fluctu- These specs will let you see football in a lend up to $1 billion to GM develop a hub for health agement has received a $2 travel has ated as hotel rates whole new way at MJR Digital Cinemas. so that the company can care and research at its million pledge from alumnus fallen off in recent years, he have increased. purchase additional equity Rochester Hills campus, Ed Elliott, a former partner in 3-D technology. said, but a slew of people ea- “This couldn’t have come that GMAC is planning to The Detroit News reported. the former Touche Ross & Co. The 8 p.m. game between ger to travel to Washington, at a better time for a lot of offer as part of its effort to The university plans to Warren-based Campbell- the University of Oklahoma and D.C., for Obama’s inaugura- people,” Tarver said. “With raise more capital. break ground this year on Ewald won the creative and the University of Florida will be the auto companies and the The company said Dec. 31 the first of three buildings to media planning and buying tion are providing a wind- shown at 80 MJR theaters. predicament that they’re it raised $21.2 billion in a host a new medical school, contract for San Antonio- fall for his business. Locally, the theaters are in, no one wants to spend debt-for-equity swap, but research and other pro- based financial services and “I’ve been to other inau- in Brighton, Sterling any money.” appears to remain shy of its grams. The as-yet-unnamed insurance giant USAA. gurations and rallies, I’ve Heights and Southgate. capital-raising goal needed research park will probably General Motors Corp. on taken unions and churches Tickets are on sale at to qualify to become a bank not be complete until 2014. Dec. 24 sued bankrupt sup- to D.C. for these types of BOA cuts PR staff to zero the theaters or at functions before, so it was holding company. Oakland County Execu- plier Cadence Innovation www.mjrtheatres.com. L.L.C. just an automatic thing,” he Bank of America has fin- tive L. Brooks Patterson said , for immediate access to specialized parts and said. ished downsizing its local the new facilities will mesh Kuwait scraps $17.4B well with the region’s goal equipment, arguing that a With just over a month press-relations team, reduc- The Henry Ford hosts of being seen as a health- delay would hamper the to go until the Jan. 20 inau- ing it to zero. Dec. 17 was K-Dow joint venture the last work day for long- premier of film care leader. launch of its new Chevrolet guration, Gray’s filled two The Kuwaiti government time PR ace Robert The Henry Ford in Dear- Camaro, disrupt assembly 50-passenger tour buses on Dec. 28 scrapped K-Dow Darmanin, who has been do- born will host the U.S. pre- N THE MOVE operations and cause it mil- with D.C.-bound Detroiters Petrochemicals, a $17.4 bil- O mier of “Journey to Mecca: lions of dollars in damages, willing to pay $425 each to ing PR for a succession of lion joint venture with Dow In the Footsteps of Ibn Bat- Joseph Doyle has been the AP reported. see the next president banks locally since 1992. Chemical scheduled for a tuta” beginning Friday at promoted to president of Fired Detroit Public sworn in, and is working Darmanin had been han- Jan. 1 start, after criticism its Imax theater. Livonia-based TCF Bank, Schools Superintendent Con- dling PR for Standard Feder- from lawmakers that could with another agency to The film follows Battuta’s Michigan, from executive nie Calloway has asked the al cum LaSalle cum BOA have led to a political crisis book a third. 1325 journey from Tangier to vice president and director Detroit Board of Education for since 2002 and was one of there, the AP reported. Greg Tarver of Detroit- Mecca across North Africa, of consumer lending. He re- a hearing to get her job those retained by BOA The collapsed deal may based TCA Travel Club, which the Middle East and the Ara- places Robert Grant, who left back, the AP reported. when its deal to buy LaSalle hinder efforts to improve the offers dues-paying members bian Peninsula and features to pursue other interests. The Walled Lake-based closed in October 2007. economy in the state, which low-cost vacations, said he’s the first-ever Imax aerial Michigan Star Clipper dinner Because the termination has the nation’s highest un- sold 104 spots for inaugura- footage of Mecca and ground THER NEWS train was to make its last occurred before the end of employment rate at 9.6 per- O tion-goers at $399 a pop. the year, Darmanin still access into the holy areas run New Year’s Eve, The De- cent. Detroit will be includ- Both men are hoping the qualifies for LaSalle’s buy- around the Grand Mosque, troit News reported. State officials in July had ed in the second phase of a inauguration trip leads to out terms. Although BOA is the most sacred site in the Is- A Wayne County Cir- said the state was getting a U.S. Small Business Adminis- future business. the largest bank by deposit lamic world. cuit Judge ruled Detroit headquarters building pro- tration initiative designed to Downtown Development Au- jected to eventually have up offer job training to small thority improperly evicted to 800 jobs. inner city businesses. the owners of the Rhino, a But the deal unraveled Small-business executives Harmonie Park nightclub when Kuwait’s government in the Emerging 200 initia- whose owners have alleged announced it was too risky tive participate in an inten- they were shaken down for Our e-mails will keep you in the know this year considering the global finan- sive and comprehensive pro- campaign contributions to cial crisis and low oil prices. gram, draw from each former Detroit Mayor Now that the fun and excitement of jump on Monday’s issue, Kuwait was to hold a $7.5 bil- other’s experiences and ex- Kwame Kilpatrick, The De- crainsdetroit.com e-mails give you New Year’s has died down, what is lion stake in the project, an pertise, develop connections troit News reported. your big resolution for the year? the inside information that you can with local capital providers, BAE Systems has closed act upon. investment criticized by Want to lose weight? Stop some in the country as a and complete a growth plan on the purchase of a former smoking? Call your crazy Aunt And they’re free. Sign up today at by the end of the program, waste of public funds. TRW Automotive Holdings Shirley more often? www.crainsdetroit.com/getemail. according to a statement re- Corp. plant in Sterling Those are all admirable things, but Are you a small-business owner? leased by the SBA. Heights and could have I would suggest adding one more. We have an e-mail report for that. ForeSee Results to lease New York-based Ashke- bulldozers there within Resolve to be more informed and Are you interested in the black-tie former Pfizer location nazy Acquisition Corp. an- weeks for an expansion. better-equipped to make the most charity scene? Got one for that, nounced Dec. 22 that it has of your business opportunities. too. Ann Arbor-based ForeSee closed on a deal to acquire OBITUARIES How, you say? Want to read stories of interest to Results has picked a site for Southfield’s Northland Cen- both sides of the state? We can Sign up now for crainsdetroit.com e- its expansion, leasing 40,000 ter from Jenkintown, Pa.- Dr. John Gilroy, former WEB WORLD accommodate you. mails. Whether it’s our daily e-mail square feet of space in a for- based Jager Management Inc. chairman of the neurology Alan Baker report that delivers the day’s All our e-mails are free, easy and mer Pfizer Inc. building on for an undisclosed price. department at William Beau- headlines for you every afternoon, Web General Manager help keep you “in the know.” Green Road in Ann Arbor. Northwest Airlines Corp. mont Hospital in Royal Oak, or our weekly e-mail report that gives you a See you online. ForSee plans to invest said in a December filing died Nov. 13. He was 83. DBpageAD.qxd 12/15/2008 11:29 AM Page 1 DBpageAD.qxd 12/12/2008 10:54 AM Page 1

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