20090720-NEWS--0001-NAT-CCI-CD_-- 7/17/20096:03PMPage1 ©Entire contentscopyright2009byCrainCommunicationsInc.Allrightsreserved are heldby the council.Thosepositions mission, anadvisorybodyto and theCityPlanningCom- Development Department istration’s Planningand clude theheadsofadmin- troit CityCouncil,andin- mayor ofDetroitandtheDe- bers areappointedbythe has helditsfirstmeeting. Land BankAuthority the creationof Detroit CityCouncil tax credits. cally eligibleforbrownfield the landbankareautomati- Parcels funneledthrough bilitate derelictproperties. buy, sell,demolishorreha- ability tocleartitlesand gives alocallandbankthe verted properties.Statelaw to speedupthesaleoftax-re- Marcell Todd, find theirniches,Page15 Spy biz,threeothers feeling thepinch?Page4 Are high-endrestaurants will bemusictoyoungears Boosters hopeartsdeals gains; what’s thesecret? Hospital turnslossesto getting offtheground Land bankauthority

NEWSPAPER www.crainsdetroit.com Vol.25,No.28 Small BusinessMonthly This JustIn Inside Page 3 The board’ssevenmem- Almost oneyearafterthe Land banksaredesigned See ThisJustIn,Page2 Warren Palmer respectively. , thatbody approved Detroit and assets ofcastingsproducer sion PartsInternationalInc. of fineblankingandmetalstampingfirm tech L.L.C. new manufacturercomingtolifethroughac- cast-metal componentsectoris auto partsmanufacturersinthestamped-and Dillon pool plandrawsbizbacking Dillon’s health insurance makers Cerion buysbankruptmetal-parts new autosupplier Acquisitions drive providers. surers, physicians,hospitalsandother ating deeperdiscountswithhealthplans,in- state cangenerategreatersavingsbynegoti- in thestatehealthprogram,Dillonsaid school districts. include localgovernments,universitiesand Michigan businessesandotherorganiza- Page 24 jog memories, Revstone may Cerion and Name behind Hofmeister: T By increasingthenumberofcoveredlives Several representativesofSoutheast Rising fromtheashesofthreebankrupt EPRINCIPAL HE , almostalltheassetsandoperations CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B B Y Y R J health benefitprogramto pand thestate’semployee introduce legislationtoex- ployee purchasingpool. creating alargepublicem- to cuthealthcarecostsby lon, D-RedfordTownship, House SpeakerAndyDil- last weekbyMichigan support foraplanoffered tions areexpressingearly component businessof acquired thedie-castmetal Ky., havesinceDecember tone IndustriesL.L.C. and parentcompany $1 billioninrevenue. pable ofgeneratingnearly quisitions thatcouldbeca- AY YAN Dillon saidhewillsoon Plymouth-based Cerion G B REENE EENE and, onJuly14,the Intermet Corp. Cerion L.L.C. of Paris, JULY 20–26,2009 Preci- Revs- Con- , a sector runit.” ance. Wewillgoouttobidand lettheprivate ment-run systemorreplacing privateinsur- lon said.“Wearenottalking aboutagovern- not goingtoforcepeoplerollintoit,”Dil- costs arelowerthanthestateplan,we surance, hesaid. pay lowerout-of-pocketcostsforhealthin- However, low-incomepublicworkerswould more healthcarecoststopublicworkers. in thepublicandprivatesectorthatshifts save additionalmoneybycontinuingatrend because oftheircontracts,officialssaid. harder toincorporateunionsintostatepools had lowlevelsofunionmembership.Itis cities thatjoinedthepool. increase, comparedwith8percentforthose the state’spoolfaceda13percentaverage 5 percent.Massachusettscitiesthatdidn’tjoin states havereportedsavingsof2percentto Source: NationalConferenceonStateLegislatures,Denver municipalities, universitiesandschooldistricts. run healthinsurancepoolthatincludes About 23stateshavesometypeofgovernment- S North Carolina,Wisconsin,Delaware,California. operations throughouttheU.S.andMexico were abletopickupatleast20manufacturing failed toreorganizeandemergeintact. tween August2008andJanuary2009 suppliers filedforChapter11bankruptcybe- companies’ bankruptcycases. July 31,2008,accordingtorecordsfromthe about $310millioninthe12monthsending last year,andIntermetpostedrevenueof enue of$141millionfromJanuarytoOctober enue of$156.7millionin2008.PPIpostedrev- and theMidwest. executing automotivedealsinmetroDetroit Kentucky industrialistwithatrackrecordof Dillon saidhisplancansave $700million “Some (public)plansarerunwell.Ifyour Dillon acknowledgedthatheexpectedto AEISRNEPOOLS INSURANCE TATE Union vs.non-union States withhighestparticipation Potential savingswithpooledplans For about$43million,RevstoneandCerion Each ofthemetalstampingsandcastings Contech’s castingsbusinessgeneratedrev- Revstone isheadedbyGeorgeHofmeister,a : Moststateswithpools See Insurance,Page24 See Cerion,Page24 : Georgia, : Some tant tobuyticketsforateamthreeyearsremoved fans’ disposableincomeandmakingthemhesi- pecially harshinmetroDetroit—vaporizing quent nationaleconomicplungethat’sbeenes- team’s last-placefinishin2008andthesubse- et revenuesofarthisseason. roughly translatesinto$8.9millionlessintick- same numberofhomegames. last season’s39,761throughthe Comerica Parkcomparedto through 40gamesat41,255-seat eraging 30,875pergame week’s All-Starbreakwasav- a money-losingendeavor. the WorldSeries—evenifit’s spend evenmoretoreturn the team’sowneriswillingto team’s long-termfinancialhealth. has baseballinsidersspeculatingaboutthe something theteamsaiditwaspreparedforbut tendance that’soff22percentfromlastyear, large-market payrollwithmidsizemarketat- now atfullcount? Are teamfinances still spending sales fall,Ilitch Tigers’ ticket 094-93,7 11,235,007** 3,202,645* 11 8 3,047,139 30,875 9 ** ThroughAll-Starbreak 2,595,937 39,538 48-39 * Franchiserecordattendance 13 2,024,485 37,619 74-88 2009 21 1,917,004 32,048 88-74 2008 22 25,306 1,368,245 95-67 2007 23,962 27 71-91 2006 72-90 2005 17,103 2004 43-119 2003 most lossesin2003: League BaseballAmericanrecordfor Comerica ParksinceDetroitsettheMajor Here’s alookatattendance41,255-seat A on OpeningDay2009. Detroit TigersfanswaittogetintoComericaPark The fandrop-offisattributedtoboththe At anaverageticketpriceof$25.15,that Attendance throughlast And tothedelightoffans,ifnoteconomists, The division-leading H BALLPARK THE T eodprgm rankTotal pergame Record CRAIN’S DETROITBUSINESS B NATHAN SKID/CRAIN’SDETROITBUSINESS vrg MLB Average Y B ILL S Detroit Tigers HEA $2 acopy;$59year See Tigers,Page25 /extra detroit.com www.crains on themound, Dave Rozema Shea faces Bill atthebat: W BEXTRA EB have a ® 20090720-NEWS--0002-NAT-CCI-CD_-- 7/17/2009 6:10 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS July 20, 2009

named Shrawan Tiwari as its first Hotels’ ex-owner back Openings remain the U.S. House Transportation THIS JUST IN president. Committee on Friday. Tiwari has served as executive in bankruptcy court for Israel trade mission The funding for the transit cen- ■ From Page 1 manager at Pat Engineering in A former owner of the Hotel St. Up to 10 businesses can partici- ter is part of a $76 billion trans- Doha since its inception in 2002 Regis in Detroit and the Plaza Hotel pate in an October trade mission portation appropriations bill that The group met July 15, but and will continue in that role as in Southfield is back in federal to Israel through Troy-based Au- cleared a subcommittee vote earli- board member Deborah Younger, well as serving as North American bankruptcy court for tax liens tomation Alley. Registration for the er in the week and the full commit- executive director of Detroit LISC, president. against another hotel company he Oct. 23-29 mission closes Sept. 4. tee vote Friday. The bill proceeds said the authority has ground- The local subsidiary identifies owns. Stops on the trade visit include to the House floor Thursday. work to complete before the land partners, products and services Remo Polselli, 53, of Bloomfield Haifa, Tel-Aviv and Jerusalem. Some $5 million in funding has bank can get to work. for engineering and consulting Hills is the owner of Oakland Targeted industry segments in- been proposed in a Senate version Younger said the authority is projects in India, Kuwait, Qatar County-based Waterfront Hotel Ven- clude aerospace, defense and of the appropriations bill, but that in the process of selecting an at- and South Korea, in areas includ- tures L.L.C., which bought the St. homeland security, life sciences, bill is idle, as the House appropria- torney to write its articles of in- ing green construction, telecom, Clair Inn in St. Clair County in IT, nanotechnology and renewable tions bill usually advances first, corporation and has engaged the IT and security. 1997 and filed Chapter 11 reorgani- energy. said Dan Beattie, director of gov- Flint-based Genesee Institute, a In the month since it opened, zation this week at U.S. Bankruptcy — Chad Halcom ernment relations at the Washing- nationally recognized land bank- the local office has signed joint- Court in Detroit. ton office of Detroit-based Clark ing assistance organization, to venture agreements with nearly Polselli was released from a fed- Hill P.L.C. Beattie represents Troy develop the authority’s bylaws. two dozen local companies to do eral prison in 2004 after complet- Transit center halfway to goal and Birmingham in their push Younger said she hopes the land business in the Middle East ing a sentence for three federal tax for federal funds. bank can begin adding properties and/or India, Vice President Carol The law firm is acting as pro- violations involving the Plaza Ho- Proponents of a $7 million re- to its inventory by year’s end. Spellman said. ject manager for the cities’ tran- tel in the 1990s; he claims $5.3 mil- gional mass transit center near Other board members are — Sherri Begin Welch sit proposal. The two cities al- lion in liabilities including a $4.8 the Troy-Birmingham border Steve Ogden, vice president, The ready have pledged up to $1.6 million lien by the Internal Revenue were closer to reaching the Sterling Group; contractor Glenn million in municipal funds to Service. Stephen Moore, public in- halfway point in funding after an Wash; Marsha Bruhn, former plan- Home improvement firm match any federal contribution. formation officer for the IRS crim- allocation of $1.3 million cleared ning commission director; and to host sales job seekers inal investigations division in De- — Chad Halcom consultant Savarior Moss. Shelby Township-based 1st troit, said the lien appears to The authority’s next meeting Choice Home Improvement Inc., a combine his criminal judgment CORRECTIONS is set for Aug. 6 at 2 p.m. at the manufacturer and installer of cus- with some possible interest, fees Planning and Development De- Ⅲ A story on Page 20 of the July 13 edition incorrectly stated the num- tom vinyl-clad windows, doors, or other IRS judgments. partment. ber of members in Oakland University’s police officer and dispatcher siding and other products is hav- Attorney Morris Lefkowitz of — Nancy Kaffer union. The correct number is 18. ing an in-house job fair next Mon- Southfield, who represents Water- Ⅲ A story on Page 22 of the July 13 issue misidentified the employer of Engineering subsidiary link day at its offices along 23 Mile front Hotel in the bankruptcy case, one of the panelists scheduled to speak at a program for job seekers in Road east of Dequindre Road. The declined to comment. the marketing and advertising fields. Gary Erickson is partner at Exec- to Mideast, Indian business company is to add eight-10 sales Other creditors include the city utive Search Partners L.L.C. in Farmington Hills. of St. Clair for $36,000, Hallandale, Doha, Qatar-based Pat Engineer- positions offering more than Ⅲ The headline of a story on Page 3 of the June 29 issue incorrectly re- $70,000 per year, said President Fla.-based TransCapital Bank for ferred to a letter of interest from the Wayne and Joan Webber Foundation ing Enterprises Co. W.L.L. has estab- $380,000, and St. Clair-based St. lished a North American sub- Steve Noble. 1st Choice sells to as a pledge. The story also reported the Salvation Army Eastern Michigan homeowners. Clair Inn L.L.C. for $53,165 Division raised $3 million toward its match requirement of $48 million sidiary, Pat Engineering Enterprises — Chad Halcom USA, in Madison Heights and — Chad Halcom by mid-April. It should have said the organization raised $2.6 million.

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July 20, 2009 CRAIN’S DETROIT BUSINESS Page 3 Partnership puts hospital on mend Focus: Real Estate Real estate brokers Doctors, McLaren reopen Pontiac facility as a for-profit find success by BY JAY GREENE gional Medical Center, were fiercely physical therapist with McLaren June were unavailable. thinking outside the CRAIN’S DETROIT BUSINESS competing for patients. in 1998. He rose through the ad- “It has been a team concept, retail box, Page 9 But a group of 42 physicians in ministrative working with physicians and em- When Doctors’ Hospital of Michi- Pontiac and at Flint-based McLaren ranks to become ployees, to have achieved what we gan in Pontiac opened in Novem- Health Care Corp. was willing to in- vice president of have done,” said Sevillian, 39, a na- Not all are happy with new ber, not everyone believed the vest $7.5 million to reopen the hos- operations in tive of Flint who played wide re- state’s only for-profit hospital pital in a unique partnership they 2006 for ceiver at Vanderbilt University in rules governing appraisers would become successful. believed would become a new prof- McLaren’s Nashville in the early 1990s. It had lost tens of millions of dol- itable business model. Lapeer Regional Unlike the state’s other 146 hos- and brokers, Page 11 lars over a dozen years and $2 mil- The turnaround started slowly. Medical Center. pitals, Doctors’ Hospital operates lion a month from August to Octo- From November through Febru- In April and under a unique ownership model ber last year as North Oakland ary, Doctors’ Hospital cut monthly May, Sevillian — the acute-care facility is the Company index Medical Center before it closed on losses from $900,000 to $299,000, said the hospital only hospital in the country owned Sevillian Oct. 28, the city of Pontiac had said CEO Clarence Sevillian Jr. showed profits by a group of doctors and a non- These organizations appear in this week’s Crain’s more than 16 percent unemploy- By March, Doctors’ Hospital of $359,000 and $330,000, respective- profit health care system. Detroit Business: ment, and two other hospitals, St. posted its first profit — $51,000, ly. Gross monthly revenue topped Andiamo Restaurant Group ...... 4 Joseph Mercy Oakland and POH Re- said Sevillian, who started out as a $10 million, he said. Financials for See Hospital, Page 21 Assets International ...... 15 Baldwin Commons ...... 9 Bernard Financial Group ...... 10 Big Beaver Tavern ...... 4 Botsford Hospital ...... 21 Butcher & Packer Supply ...... 16 Cerion ...... 1 History buff: Community Foundation for Southeast Michigan . . . 23 Consumers Energy ...... 15 Cook, Pray, Rexroth & Associates ...... 11 CORE Partners ...... 9 Ageless arts? Crittenton Hospital Medical Center ...... 21 Do the math Cultural Alliance of Southeastern Michigan ...... 23 Delphi ...... 4 Groups look to draw Detroit Chamber Woods & Strings ...... 3 Detroit Economic Growth ...... 3 young professionals on buildings Detroit Edison ...... 15 Detroit Institute of Arts ...... 3 Detroit Medical Center ...... 21 with discount tickets Formula tests Detroit Renaissance ...... 24 Detroit Symphony Orchestra ...... 3 BY GABE NELSON Detroit Tigers ...... 1 SPECIAL TO CRAIN’S DETROIT BUSINESS rehab viability Doctors Hospital of Michigan...... 3 Energy Optimization ...... 15 When Natalie Bruno looks into BY NANCY KAFFER EPrize ...... 9 the audience at a Detroit Chamber CRAIN’S DETROIT BUSINESS Grace Christian Church ...... 9 Winds and Strings concert, she sees Grubb & Ellis ...... 10 Richard Hosey is a numbers gray hair. Harper Associates ...... 16 guy, a senior vice president and se- The group’s core patrons are Henry Ford West Bloomfield Hospital ...... 21 nior originator for tax credit in- aging, said Bruno, director of de- Howard Babcock and Associates ...... 11 vestments based in Bank of velopment for the group and its Identity Marketing and Public Relations ...... 17 America’s Detroit office. partner orga- J.C. Beal Construction ...... 22 He’s also a Kirco Development ...... 9 nizations COURTESY OF JOHN GRIGAITIS historic preser- LaKritz-Weber ...... 9 SAVING OPERA Eisenhower A discount Michigan Opera Theatre ticket program called Access, begun vation guy, Lormax Stern Development ...... 9 Breathing room: Dance Ensem- last fall for students and new patrons, includes networking receptions at whose résumé Marwil and Associates ...... 24 Banks lower bond ble and the opera events. includes stints Matt Prentice Restaurant Group ...... 4 payments for Great Lakes Michigan Opera at prominent McLaren Health Group ...... 3 Chamber Music Theatre, Page 23 “Do we think that they’re going nity for an encore. historic preser- Metro-West Appraisal Co...... 11 Festival. to be hooked immediately? No, The DSO and MOT started pro- vation and real Michigan Education Association ...... 24 Although not necessarily. But this is grams last fall estate compa- Michigan Opera Theatre ...... 23 the three organizations had where our real mission aimed at students nies in New Or- Mpro...... 21 steady ticket sales over the past Oakbrook Appraisals ...... 11 comes in. We’re trying to and young profes- leans and Balti- few seasons and saw their com- Original Equipment Suppliers Association ...... 24 create an entire experience sionals. more. Hosey bined revenue climb slightly to P2R Associates ...... 24 for them,” she said. The DSO’s 37/11 And when Detroit’s historic $1.4 million in 2008, Bruno said Plante & Moran ...... 24 The slow econo- club, named after buildings are slated for demoli- she’s keeping a close eye on the This Quicken Loans ...... 9 my has brought the address of the tion, Hosey thinks it’s a waste. age of the groups’ patrons. story Ramco-Gershenson Properties Trust ...... 10 challenges center Max M. Fisher Music When the Lafayette Building — “The audience right now, to be originally appeared on Seldom Blues ...... 4 stage for fine arts Center at 3711 Wood- the latest historic building to quite frank, is going to die off,” Detroit Make it Here Shops at Sterling Ponds ...... 9 institutions. Phil- ward Ave., offers $11 make the city’s demo list — was she said. (www.detroitmakeithere Spy King ...... 15 anthropic support tickets to certain per- still in play, the native Detroiter That’s one reason Bruno and is dwindling, ticket .com), a Web site for formances for people St. John Health System ...... 21 wanted to prove that it could be re- St. Joseph Mercy Oakland ...... 3 colleagues have organized the De- sales are down, and area creatives powered under 37 years old. habilitated, the economic climate Summit Place Mall ...... 9 troit Passport to the Arts pro- meanwhile, audi- by Crain’s and The MOT program, notwithstanding. Trinity Health ...... 21 gram, which will offer discount ences are aging. sponsored by Detroit called Access, offers Detroit Economic Growth Corp. offi- University of Michigan Hospitals and Health Centers 21 tickets to presentations at local In response, Renaissance Inc. If you $20 tickets to students cials have said rehabilitation of Western Creative ...... 17 arts venues, including the Detroit seek creative talent or metro Detroit arts and new patrons for the Lafayette isn’t financially vi- Symphony Orchestra, the Michigan services, you can find institutions are one performance of able, an assertion to which Hosey Opera Theatre and the Detroit Insti- more than 1,000 courting young each production. Tick- objects. Department index tute of Arts. people and 2,000 professionals with et prices for new pa- “The markets are really frozen Bruno, also the Passport pro- companies on the site. BANKRUPTCIES ...... 25 such perks as dis- trons, however, rise up and projects are hard to do, but gram’s lead organizer, described count tickets, free with each visit. in terms of the viability of the BUSINESS DIARY ...... 20 the program as an effort to reach food and after-parties. The Passport to the Arts pack- building, I think it’s definitely vi- CAREERWORKS ...... 18 out to young professionals now, In those young patrons, who age, which goes on sale in mid- able,” he said. CLASSIFIED ADS ...... 20 rather than expecting them to might become tomorrow’s sea- August, will cost $89 — a fraction So he ran some numbers. transform into avid arts support- son-ticket subscribers and phil- KEITH CRAIN...... 6 ers once they grow older. anthropists, they see the opportu- See Arts, Page 23 See History, Page 22 LETTERS...... 7 OPINION ...... 6 OTHER VOICES ...... 7 Voter guide How-to video PEOPLE ...... 19 Profiles and videos for more than 100 Check several news sites a day to get the headlines? Save THIS WEEK @ RUMBLINGS ...... 26 candidates for Detroit City Council. time and organize all those stories. To see how to set up an WWW.CRAINSDETROIT.COM www.crainsdetroit.com/election RSS reader, go to www.crainsdetroit.com/multimedia SMALL BIZ SOLUTIONS...... 17 WEEK ON THE WEB ...... 26 20090720-NEWS--0004-NAT-CCI-CD_-- 7/17/2009 5:17 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS July 20, 2009 High-end restaurants revamp A partner menus, prices in bid to fill seats

BY NATHAN SKID closed its Southfield restaurant on “We are talking tens of thou- CRAIN’S DETROIT BUSINESS June 26, though remaining open in sands of dollars in sales increase you can trust Troy, Matt Prentice, president of over the same week for the previ- When Mark Larco opened Lar- Matt Prentice Restaurant Group, re- ous year,” he said. While promo- co’s Italian Chophouse in Troy in acted swiftly to ensure his nearby tions alone may be enough to 1990, life was good. Shiraz, in Bingham Farms, stayed hedge losses over a short period, In today’s economy, you need a partner Businesses near his Big Beaver healthy. other restaurateurs say it’s not Road location were booming. Busi- “When Morton’s closed, I enough. that understands the value of real estate. ness executives were busy enter- thought ‘Oh my God, the business Joe Vicari, president of The Andi- taining clients. Fine dining flour- zone is dead,’ ” Prentice said. “The amo Restaurant Group, said main- We’re your partner for expert advice that ished. viable companies in taining strong marketing is vital improves performance, reduces costs, manages Those days are the area are moving to remaining afloat in a down risk and boosts productivity. now a distant memo- Things were out and hotels are economy. ry. “ closing.” “When economic times are On July 3, Larco so bad I saw a Prentice decided good, branding is not as important said goodbye to his to tweak Shiraz’s as it is when it’s bad,” Vicari said. once-proud Italian need for drastic promotional offer- “You have to maintain a presence eatery. Ten days lat- ings. and create brand awareness to er, at the same ad- change. Prior to Morton’s make sure people know what you dress, he was cele- ” closing, Prentice ex- are doing.” James C. Becker brating the grand Mark Larco, Big Beaver Tavern panded his restau- The Andiamo Restaurant Group Market Director opening of his new rant group’s fre- generated about $45 million in rev- +1 313 967 4100 www.us.joneslanglasalle.com Big Beaver Tavern. quent-diner program to include all enue last year and spends roughly “It just seemed to me that this is customers. Before, it had cost $1.2 million on promotions and an- © 2009 Jones Lang LaSalle IP, Inc. All rights reserved. what the public wants, so the $19.95 to join. That added thou- other $1 million on advertising. transformation would be good for sands of e-mail addresses to his “Independent restaurateurs me,” he said. list, generating hundreds of thou- who don’t think they need to ad- Larco said business started to sands of dollars in sales for the vertise are sadly mistaken, Vicari drop precipitously about two years group. said. “I think if you went to ask ago. Offering coupons and dis- The program offers customers a them next year, they might not be counts increased volume but did- 25 percent discount at any of his around.” n’t help his profitability. fine-dining restaurants. Volume is also down at least 25 “It was like someone just turned But after Morton’s closing, percent at Detroit’s Seldom Blues. off the faucet. Sales declined 35 Prentice went a step further by Bill Young, general manager at percent in 2009 after a 20 percent adding a buy-one-get-one-free pro- Seldom Blues, said the jazz restau- decline in 2008,” Larco said. motion for dinner through Labor rant is using a multiple pronged “Things were so bad I saw a need Day at Shiraz, Northern Lakes attack to stem the loss. for a drastic change.” Seafood in Bloomfield Hills, No.VI It is offering free valet parking, Larco invested $250,000 in the Chophouse in Novi and Coach In- has formed a promotional partner- restaurant conversion. He in- signia in Detroit. The same offer ship with the Detroit Marriott Re- stalled 20 televisions and changed applies to lunch at Shiraz and naissance Center, and has added the seating, look and feel of the Northern Lakes. more affordable items to the menu. restaurant to appeal to an entirely Prentice said sales at Shiraz for “We have to find ways to fill the different type of customer. the first promotional week of 2009 void left by the economy, so Sel- But instead of scrapping the en- were 48 percent higher than those dom Blues and the Detroit Mar- tire menu, Larco did keep the most from the same period a year earlier. riott are offering a dinner for two popular items from the chophouse. But regardless of its short-term at Seldom Blues and a stay at the “Under this new umbrella restau- benefit, Prentice was hesitant to Marriott for $199, Young said. “We rant, I can still sell our filet mignon lengthen the promotion. have sold hundreds of these pack- and other high-end entrees while “I don’t know if I am doing the ages since March. We are averag- appealing to guests who just want a right thing, but you have to find a ing 70 to 80 of these a month” $6.99 burger,” Larco said. way to put people in seats,” he Vicari, Prentice, Larco and Larco is not alone. Many of the said. Young all agreed on one point. area’s high-end restaurants are Prentice was unwilling to give None are expecting the economy to making over menus, prices or an exact figure but said there has get better anytime soon. marketing programs. been a dramatic jump in sales at Nate Skid: (313) 446-1654, When Morton’s the Steakhouse Shiraz since the promotions began. [email protected] World Famous Trademark- WorldClassOpportunity Delphi sheds most U.S. plants, will focus on electronics

BY DAVID BARKHOLZ Williams says annual sales of the view Delphi’s exit plan is sched- Ever Dream of Owning CRAIN NEWS SERVICE new Delphi are expected to be less uled for Thursday in U.S. Bankrupt- than $10 billion, down from cy Court in New York. your own business? Nearly four years after entering $22.59 billion in 2005. The supplier was spun off from Chapter 11, Troy-based Delphi Corp. Jockeying for ownership of the GM in 1999. The 7-Eleven Franchise System* offers is poised to emerge from bankrupt- new Delphi has come down to two Delphi’s core products are individuals to operate their own ready-to- cy without most of its U.S. plants groups: telematics, engine management, operate neighborhood convenience store and commodity products and with Ⅲ under the auspice of a world famous Parnassus Holdings II, an affiliate occupant protection, wiring and a tight focus on electronics. trademark. We take an active role in the of Platinum Equity of Beverly Hills, connections, power products and Former parent General Motors franchisee’s business because our Calif., has made a $3.6 billion offer controls, climate control systems Co. is facilitating much of Delphi’s success is predicated on their success. for the surviving assets of Delphi. and consumer electronics. exit from U.S. production. To en- Under that proposal, Platinum With much of Delphi’s U.S. pro- sure a supply of parts, GM plans to Contact us today would put in $500 million in cash duction returning to GM, sales to take back five UAW-represented and stock. The deal also would in- its onetime parent likely will be a to see if you qualify: U.S. plants as well as Delphi’s glob- clude $2.5 billion from General Mo- fraction of the $5.56 billion in 2008. al steering business. tors and $600 million in Delphi cash. When the supplier emerges from Call 630-366-3328 Delphi will be left with just four Ⅲ Delphi’s debtor-in-possession bankruptcy, fewer than 10,000 of Or visit us at of the 41 U.S. plants it had when fil- bankruptcy lenders are exploring a Delphi’s nearly 120,000 employees ing for Chapter 11 in October 2005. credit bid that would forgive about worldwide will be in the U.S. That www.7-Eleven.com Only 1,500 hourly U.S. employees $3.3 billion in loans made to the compares with more than 50,000 will remain, compared with 33,000 supplier in exchange for equity. U.S. employees out of 184,000 when the company sought bank- An auction to determine owner- worldwide when Delphi entered ship was postponed Friday and Chapter 11. * Moderate financial resources and business experience are required to franchise a store ruptcy protection. Company spokesman Lindsey moved to Tuesday. A hearing to re- From Automotive News DBpageAD.qxd 6/22/2009 9:45 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS July 20, 2009 OPINION: DETROIT PRIMARY ELECTION etroit voters have primary. With more than 160 candidates WTVS-Channel 56 and the University of a once-in-a-gener- On the same ballot, voters will on the ballot, Crain’s did not con- Michigan-Dearborn. WEB EXTRA D ation opportuni- begin to determine who will shape duct interviews with all candidates. We also reviewed the selections of political action committees and Interactive ballot, ty in August to select a new charter for the city. Instead, we invited candidates to links to MiVote new leadership for the city. Without question, the entire re- submit information to reporter Nan- other media to identify candidates Project videos At least three City Council gion, especially its business com- cy Kaffer, and we reviewed choices who showed up on more than one and more, incumbents are not running; at munity, is affected by Detroit’s through a remarkable online tool list. (See “endorsements,” below left.) www.crains least three newcomers will be politics and its economic fortunes. created by the nonprofit voter in- The non-incumbent candidates detroit.com/ elected in November. But We all have a stake in the August formation Web site publius.org and we selected to profile below are election the first step is selecting primary and November general MiVote Project videos created by De- worthy of voter consideration as 18 candidates in the Aug. 4 election. troit’s public television station, well as business support.

Charles Pugh: Detroiters ENDORSEMENTS CITY COUNCIL probably know Pugh best from his days as a reporter, anchor Detroit Regional Chamber Gary Brown: A career police and weekend host at WJBK-TV2. Council Charter Comm. officer, Brown catapulted into the The longtime reporter left his Jai-Lee Dearing Jenice Mitchell Ford spotlight when he filed a whistle- post earlier this year to run for blower lawsuit against the city of the council. Gary Brown Sarah Lile Brown Donaldson Hall Jenkins Pugh Spivey Fred Elliott Hall Jonathan Kinloch Detroit, the Detroit Police Depart- Pugh says his time as a re- ment and former Mayor Kwame porter has given him a street-lev- Saunteel Jenkins Patty Fedewa Kilpatrick after his 2003 firing. He out the region. curement processes” that would el view of the challenges Detroit Charles Pugh Jeffrey Hunt and former colleague Harold He supports a regional trans- eliminate the “pay to play” envi- faces and the ability to read and Ken Cockrel Jr. Kenneth Harris Nelthrope won a settlement of portation plan and campaigns on ronment. digest complicated documents re- John Eddings more than $8 million. ways to make Detroit safer and to Hall also calls for regional co- lated to city governance — such Cara Blount Notably absent from his coun- reduce blight through demolition operation that serves “Detroit’s as the budget. Ken Coleman cil campaign documents are ref- of abandoned homes. best interests and is mutually The city will have to cut pay for Lisa Walinske erences to the subsequent text- He believes the city should ex- beneficial for the region.” workers, reorganize depart- Andrew Linn message scandal that rocked periment in “restorative justice,” Saunteel Jenkins: Jenkins is a ments, divest itself of some assets Detroit. Instead, Brown has cho- which requires criminals to ac- social worker whose political ca- and return to core functions, sen to point to his service in the cept personal responsibility for reer began under the tutelage of Pugh says. AFL-CIO U.S. Marine Corps and his 26-year harming victims. late Detroit City Council Presi- Andre Spivey: Spivey is an or- Council Charter Comm. history with the Detroit Police Donaldson also favors election dent Maryann Mahaffey. dained minister in the African Saunteel Jenkins Doyle O’Connor Department. of council members by district. Jenkins says her six years in Methodist Episcopal Church, Brenda Jones Rosemary Robinson Brown defended his support Fred Elliott Hall: With an MBA Mahaffey’s office, ending as the currently serving as pastor of St. Mohammed Okdie Marlene Norris from Detroit’s business commu- in finance from Wayne State Uni- chief of staff, have given her an Paul A.M.E. Church in Detroit, Joann Watson Reggie Fluker nity in a recent opinion piece in versity, Hall founded Novatech understanding of the city’s bud- which has developed housing on the Michigan Chronicle, saying Computer Services Co. in 1989 and get, ordinances and charter man- Detroit’s near east side. Charles Pugh Ken Coleman Detroit’s leaders should be able acquired H&P Protective Services, dates. Spivey has served on the De- Dalton Roberson Elena Herrada to work with the business com- a security company, in 2005. He She’s also had corporate expe- troit School Board Transition Team Gary Brown Arthur Divers munity and that a candidate who serves on the boards of several rience as a business-development as an appointee of Gov. Jennifer Ken Cockrel Jr. John Eddings had attracted business backing area nonprofits. director for Platform Learning, a Granholm, and currently serves on Jai-Lee Dearing Teola Hunter was getting it right. He pledges to bring “strategic New York-based national educa- the Wayne County Economic Devel- Kenneth Donaldson: The asso- thinking and mature, dignified tion company. opment Corp. and the Wayne County Mildred Gaddis, WCHB-AM 1200 ciate director of the Black United leadership” to the council, while Jenkins currently serves as di- Brownfield Redevelopment Fund of Michigan, Donaldson has providing “effective oversight of rector of a Detroit-based sub- Authority, appointed by Wayne Council Charter Comm. worked with nonprofits through- the city’s contracting and pro- stance-abuse treatment program. County Executive Robert Ficano. Leland McRae Freman Hendrix John Bennett Teola Hunter David Costa Ken Coleman or Coleman Young and assistant must change. Advocates reform- Andrew Thomas Linn: An ur- Andre Spivey Jonathan Kinloch CHARTER COMMISSION director of the Civic Center De- ing the city’s electoral system to ban planner at Zachary and Associ- Saunteel Jenkins partment. Favors council by dis- elect members of the Detroit City ates and small business owner, Ken Coleman: Has worked in trict, an independent city attorney Council by district. Linn is a sixth generation Detroi- the Legislature and for the Detroit to run the city’s Law Department, A community activist and di- ter. Linn wants to streamline the Fannie Lou Hamer PAC City Council. Says the city charter and the provision of penalties for rector of the oral history project charter and include city council- Council Charter Comm. sets the path for the council to fol- officials who violate the charter. for the organization Fronteras by-district elections. Gary Brown Ken Coleman low. Kenneth Harris: Founder and Norteñas, Herrada said her expe- Jenice Mitchell Ford: Serves as Saunteel Jenkins Kenneth Harris Coleman, who also has served CEO of International Detroit Black rience as a labor negotiator and senior counsel, specializing in Raphael Johnson Elena Herrada as editor of the Michigan Chroni- Expo Inc., an economic empower- activist enables her to dissect a commercial litigation, in the De- cle Brenda Jones Teola Hunter , said he’s familiar with the ment agency with more than 7,500 complicated document such as troit offices of law firm Foley & Lard- charter in depth and believes that members statewide. Supports ex- the charter. Charles Pugh John Johnson ner L.L.P. Also serves as vice chair the revision commission should ploring council by district, investi- Jonathan Kinloch: Member of of the Detroit Board of Ethics. Andre Spivey Jenice Mitchell Ford address the question of council gating term limits for the city’s the Detroit Library Commission and Says she would like to clear up Alberta Tinsley-Talabi by districts. elected officials, reviewing checks also has served on the Detroit Pub- vague language regarding re- JoAnn Watson John Eddings: Has served as and balances between the mayor lic Schools board. Supports elect- moval of elected officials. Says an Brian White ombudsman for the city of Detroit and city council and strengthen- ing City Council members by dis- effective council-by-district sys- and Macomb County, and has ing the city’s ethical guidelines. trict, reducing the size of the tem would require a comprehen- The Michigan Chronicle and Detroit worked for the city in capacities Elena Herrada: Says the city of council and instituting term lim- sive plan, and that she would like Renaissance Inc. had not announced including deputy director of hu- Detroit is too big — and that for its. Also supports a more rigor- to change the way the Detroit City endorsements as of press time. man resources under former May- the city to shrink, the charter ous independent board of ethics. Council’s president is selected. KEITH CRAIN: Getting a message from the deceased It was very weird. A year ago, I ership hadn’t been in have any idea how im- to lower sales, not raise them. mer will have new owners and bought a new vehicle. Last week, I business last year, I portant the local dealer I have always felt that fewer continue to supply dealers with got a message from my salesman never would have is to the sales mix and dealers means more profitable products.) congratulating me on my first an- bought the car. I saw it the image in the com- dealerships, but it’s up to the deal- But watch what happens now. niversary and offering to help me when I was driving munity. ership to decide if they are making We’re going to see more canceled with anything I might need. home. And if that’s not bad enough money to stay in business dealers in Southeast Michigan fill The weird part is that the dealer- If the dealer hadn’t enough, the “new” or should they sell out. It simply their empty dealerships with ship is dead. A Chrysler Jeep deal- been on that corner, it Chrysler sent me a doesn’t cost the factory anything brands from Asia and Europe. er, it was killed during the blood would have been one press release last week to have too many dealers; it costs Their market share will increase, bath a few months ago. Today, it’s fewer sale for the old that reported those 900 the dealers. and Chrysler’s and GM’s will go barely staying alive selling used Chrysler Corp. My dealers cost Chrysler Sure, when General Motors down even further. cars until it can get a new fran- guess is there will be $2.9 billion. Ridiculous. stops selling Saab, Saturn, Hum- There will be fewer Little chise from somebody else. even fewer sales now They even tried to in- mer and Pontiac, Detroit will lose League teams and Mite Hockey This dealership was in the that the franchise has clude the cost of prod- some good dealers. Obviously, teams now that there are fewer au- neighborhood for decades. The re- been pulled from that dealer. I uct development and lost sales. they need products to continue. (It tomobile dealers. And that’s a ally funny thing is that if the deal- don’t think that car companies Closing those dealerships is going looks like Saab, Saturn and Hum- shame. 20090720-NEWS--0007-NAT-CCI-CD_-- 7/17/2009 4:55 PM Page 1

July 20, 2009 CRAIN’S DETROIT BUSINESS Page 7 OTHER VOICES: College is key to reviving state’s economy

If we are to lead Michi- the state and federal gov- This year, Eastern Michigan gic, avoiding the trap of trying to project was powered by a partner- gan toward a revitalized ernment. How? Keep tu- University expanded capacity in be all things to all people. ship that includes the state, city, economy, we must pro- ition increases low, oper- its bachelor of science in nursing Third, we can’t just say we’re county, two townships, business vide the opportunity and ate efficiently, fund program by more than 100 stu- collaborative and entrepreneurial. leaders, the academic community, means for each qualified higher education as a pri- dents. A recent grant from Michi- We have to prove it. As we’ve seen the Michigan Economic Develop- student to earn a college ority, and make increased gan’s Department of Community throughout this state, universities ment Corp. and the Michigan degree. financial aid accessible Health is supporting a new fast- have become engaged partners in Small Business and Technology A recent report by and easier to understand. track nurse educator program that economic development. Washte- Development Center. Nine tenants Michigan Future found Second, higher educa- will put more master’s prepared naw County is home to two public are already in place and working the U.S. has lost 3.7 mil- tion must be focused on nurse educators in the classroom, universities, private colleges, a at the incubator. Plus, EMU will lion jobs in manufactur- Susan Martin the intersection of core increasing capacity for nursing strong community college and a invest $179 million in capital pro- ing-related areas during this reces- strengths and Michigan’s needs. students. EMU will launch a new business community that all rep- jects over the next three years. sion, jobs that don’t require a Here’s an example: There is a doctoral program in nursing edu- resent an attractive magnet of re- We all have a stake in building a college degree. The nation gained shortage of registered nurses and cation to increase the supply of sources for economic develop- renewed and stronger Michigan. jobs requiring a higher level of ed- nurse educators in the state. faculty needed to expand nursing ment. When we work together, we Let’s work together to put Michi- ucation and training. Michigan’s demand for registered programs. fuel new business opportunity. Re- gan back to work. Here are three essential steps nurses in 2010 is projected to ex- With finite resources, it is essen- cently, we helped launch the Spark Susan Martin is president of for success: ceed supply by 7,000 nurses. tial that our institutions be strate- East incubator in Ypsilanti. The Eastern Michigan University. First, higher education must be made affordable and accessible by schools working in concert with

LETTERS Solution? Follow the law Editor: More advanced. More luxurious. The Michigan Tax Tribunal would not be swamped with prop- erty tax cases if the county or city And amazingly, more affordable. assessors who valued properties valued them at 50 percent of fair market value, according to state law. (“Tax tribunal: Raise fees. Ap- peals cost would more than dou- ble,” July 13.) The main reason the tax tri- bunal is overloaded is because the assessors are assessing property higher than fair market value, which is against state law. So the problem is caused by a govern- ment agency and burdens another government agency. The solution by government is to raise fees or taxes on the people who are being cheated by the government. So, we are raising fees to make it more difficult for property owners to be fairly treated by the govern- ment. I get it. David Van Maele Rochester Hills

Nonprofits aren’t islands Editor: One way nonprofits can rein- vent themselves, as Mary Kramer urged in her June 15 column, is simply to work together. My wife and I recently attended an excellent performance at the Detroit Repertory Theatre of a play centered on a Polish survivor Over 130 channels of SIRIUS. of Auschwitz. Available in all E-Class vehicles. A few weeks previously, we viewed an emotionally stirring ex- hibit of photos of Jewish ghettos in Introducing the all-new 2010 E-Class Sedan— a luxury vehicle with an impressive array of Poland in the 1930s at the Detroit THE ALL-NEW Institute of Arts. 2010 E-CLASS advances at an equally impressive price. A car so revolutionary it can alert you when you’re Maybe I missed it, but I’m un- STARTING AT aware of any attempt by those two driving drowsy, correct you if you’re veering from your lane and even apply its own brakes, Detroit cultural institutions to $ * if necessary, should you become distracted. See your authorized Mercedes-Benz dealer for a cross-market their offerings, de- 48,600 spite the obvious commonality of test drive today. This is the new E-Class. This is Mercedes-Benz. MBUSA.com/e-class theme and potential audiences. Oh, and isn’t there supposedly a Holocaust museum somewhere in metro Detroit? Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester Detroit’s diverse array of visual, performing and musical arts insti- 36600 N. Woodward Ave. 39500 Grand River Ave. 595 S. Rochester Rd. tutions would do well to get out of (248) 644-8400 (888) 863-6342 (248) 652-3800 their silos and explore working to- www.bloomfield-hills.mercedescenter.com www.mercedesbenzofnovi.com www.mbrochester.com gether. Jim Treece *MSRP for a 2010 E350 Sport Sedan excludes all options, taxes, title, regis., transportation charge and dealer prep. 2010 E350 Sport Sedan shown at $55,670 includes optional Capri Blue metallic paint and Premium 2 Package. Options, Detroit model availability and actual dealer price may vary. See dealer for details. ©2009 SIRIUS XM Radio Inc. ©2009 Authorized Mercedes-Benz Dealers For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com. DBpageAD.qxd 7/14/2009 11:08 AM Page 1

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July 20, 2009 CRAIN’S DETROIT BUSINESS Page 9

REPORTER’S NOTEBOOK

Bill Shea writes about media, advertising and marketing, APPRAISAL RULES CHANGE entertainment, the business of sports and Guidelines remove mortgage brokers transportation. Call from hiring appraisers, Page 11 (313) 446-1626 or write bshea@ crain.com real estate

Bill Shea Economy trims moves to Detroit The crummy economy has taken its Thinking outside toll on some of the area’s most anticipated real estate announcements. Two years ago, Livonia-based Quicken Loans Inc. said it was bringing 4,000 employees to Detroit and planned to build a new headquarters downtown. At the time, Quicken founder Dan Gilbert said he was looking at the site the box of the old Statler Hotel in Grand Circus Park and the old Hudson’s site on Woodward next to Compuware Corp. Instead, Quicken said two weeks ago it will postpone the building of a headquarters and instead move about 1,700 employees early next year into 240,000 square feet of the Compuware To brokers, LIFE AFTER CLOSING Building at Campus Martius. The online mortgage giant is Area real estate brokers are honing the art of finding tenants for empty retail space. But more challenges are expected to lease four floors in the on the horizon with another recent round of retail bankruptcies of retailers Circuit City, Linens ’N Things and 18-story, six-year-old building. creative reuse Steve and Barry’s. Here are five examples of reinvented retail space: The move requires only the approval of tax incentives by the Michigan Economic Growth Authority, expected is watchword at this point to be a formality. Quicken is calling the move an interim one and says it still plans one for ex-stores day to build a headquarters building in downtown Detroit. BY DANIEL DUGGAN The company will move all the CRAIN’S DETROIT BUSINESS employees at its current headquarters When the sports clothing in Livonia when it takes over the ▲ Medicine: A closed 8,500-square-foot Murray’s Compuware space. The Livonia lease store Steve and Barry’s closed its Auto Parts store near Summit Place Mall in expires at the end of 2010. retail outlets around the coun- Waterford Township gave California-based DaVita Inc. ▲ Religion: A closed 110,000-square-foot HQ store About 1,000 employees will not try last year, it left behind 21 the chance to open a kidney dialysis center. The in the Shops at Sterling Ponds in Sterling Heights make the move downtown, including vacant spaces in Michigan. lease was signed in April. became home to Grace Christian Church in 2007. those in two buildings in Farmington One 36,000-square-foot space Growing retailers: A vacant Comp USA space at Hills. Quicken may exercise its option near Waterford Township’s Baldwin Commons in Orion Township let discount to renew those leases when they run Summit Place Mall was put on shoe retailer DSW secure a big-box location close to out. the market to be released. Great Lakes Crossing last year. DSW had been But with the local real estate looking in the area, but space near the freeway had Quicken’s decision has a trickle- been in short supply. down effect. Other real estate market struggling, the leasing team working on the property Food: Ann Arbor-based Borders Group Inc. investment has been pegged to ▲ Education: A closed 36,000-square-foot Steve announced in January that it is closing its store at needed to get creative. Quicken’s move. and Barry’s near Summit Place Mall was leased in Detroit’s Campus Martius. Eastern Market Corp. is Pleasant Ridge-based ePrize L.L.C., Instead of housing a new re- April by the Oakland Intermediate School District. considering use of half the space as a farm stand. the online promotions and tail user, the space was leased in April by the Oakland Interme- sweepstakes company in which Gilbert ISTOCKPHOTO.COM invested $32 million, has long said it diate School District to handle plans to follow Quicken downtown. some of its outreach opera- Now, that move has been put off for tions. ness centers, maybe bigger dis- and discount retailers can get a two to three years. Eric Banks, principal with counters like Goodwill or Salva- good deal in the less-desired CEO Josh Linkner said he still has Royal Oak-based Core Partners tion Army taking some of those spaces. You’ll see medical that much time left on the lease at his L.L.C., said the real-estate firm kinds of spaces,” said Tony Still, creativity has “ company’s current 46,000-square-foot realized a creative reuse was Schmitt, vice president with driven a lot of deals in uses, fitness home, a former brewery east of the best route, rather than Southfield-based LaKritz-Weber the area. One leasing Woodward near I-696. looking for mid-box retailers. & Co., a real estate firm special- challenge appears to centers, maybe Linkner said ePrize hasn’t even “There are a lot of other or- izing in retail. have taken a cue from bigger discounters looked at sites and needs to consider ganizations and businesses The metro Detroit retail va- a higher power. a myriad of details, such as tax that can make use of the space cancy rate continues to in- In 2006, an HQ store like Goodwill or implications, before making a move. and visibility in a location like crease slightly, according to closed its doors, leav- Like Quicken, the company also has this,” he said. Bethesda, MD.-based CoStar ing a vacant 110,000- Salvation seen job cuts related to the economy. Steve and Barry’s is just one Group. square-foot space in EPrize has put any move on the retail bankruptcy example, and The current rate is 11.5 per- the Shops at Sterling Army. back burner; it was never as much of the bankruptcies aren’t only in cent, compared with 11 percent Ponds in Sterling Heights. ” in the first quarter. Between At the time, Grace Christian a priority for the company as it was for Michigan. Tony Schmitt, Lakritz-Weber & Co. Gilbert. But with the problem grow- 2006 and 2008, the rate hovered Church was looking for a new The company now has 275 ing, local landlords and leasing between 10.3 and 10.6 percent. location and found the space employees and offices in Atlanta, brokers in recent years have If a retailer is in a well-locat- appealing. By 2007, it moved Crossing mall, said Chris Chicago, Dallas New York and Los found new and inventive ways ed corridor and closes its doors the congregation into the for- Brochert, a partner with Lor- Angeles. to fill the vacant retail spaces as a result of corporate bank- mer retail space. max Stern Development Co. Lor- The company did about $40 million left in the rubble of retailer ruptcy, it can create a chain re- At Baldwin Commons shop- max developed Baldwin Com- in revenue last year, and Linkner bankruptcies and other clos- action of other stores moving ping center in Orion Town- mons in a joint-venture with called the first quarter of 2009 ings. The leasing challenges af- up the food chain, Schmitt ship, a vacant Comp USA store- Troy-based Kirco Development “fantastic” while the second was fect small-, mid- and big-box said. front proved a good place for Corp. “soft” while expecting to turn a profit. sites. Retailers on the grow can Columbus-based DSW to locate “You’ll see medical uses, fit- move to well-located spaces a new store near Great Lakes See Box, Page 10 20090720-NEWS--0010-NAT-CCI-CD_-- 7/17/2009 11:46 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS July 20, 2009 Focus: Real Estate Little relief predicted soon for mature real estate debt

BY GABE NELSON size of our economy. That’s just SPECIAL TO CRAIN’S DETROIT BUSINESS not a situation that attracts capi- tal,” he said. The mad scramble to raise cash Nationwide, real estate in- and refinance mature commercial vestors also are working furiously real estate debt will continue to be a to raise cash, according to a recent struggle for investors during at survey of more than 40 real estate least the next year, experts predict. money managers by Ernst & Young It’s going to be especially hard L.L.P. of New York. 9@>>\kfeYfXi[Xk ]c\og\ibj%Zfd% Box: Brokers get creative ■ From Page 9 Several years ago, DSW likely Foresight has been the best anti- would have built a new store, but in dote, though, Sullivan said. Ram- October it took this existing space. co-Gershenson centers are all in “Because we aren’t building a areas with strong demographics lot of new space and there isn’t a where retailers want to be located. lot of competing space, a lot of this “And we have an average of two ( )'#'''=c\oGf`ekjhlXc`Ô\j]filgkfX+''k`Zb\kmXcl\% will be leased,” he said. “If we were and a half anchors per center,” he L%J%9Xeb=c\oG\ibjKiXm\cI\nXi[jM`jXJ`^eXkli\ZXi[`j`jjl\[YpL%J%9XebEXk`feXc8jjfZ`Xk`feE;% K_\=c\oG\ibjM`jXgif^iXd`jefkX]Ôc`Xk\[n`k_#jgfejfi\[fi\e[fij\[YpEfik_n\jk8`ic`e\j#ž still building, you’d have even said. “That way, if we lose one an- ;\ckX8`iC`e\jfik_\Nfic[G\ibjžgif^iXd% more problems on your hand.” chor, we’ve still got another in Farmington Hills-based real es- place to bring others. We’re not tate trust Ramco-Gershenson Proper- held captive, and that helps us.” ties Trust owns 89 shopping centers In addition, since Southeast across the country and has been Michigan’s real estate market faced with dozens of retail vacan- slowed before the rest of the coun- cies resulting from retailer bank- try, the area isn’t overbuilt with re- ruptcy, said Mike Sullivan, senior tail like other areas, Brochert said. vice president of asset manage- “The important part is that what ment. is happening in Michigan right now The key to filling the spaces is to is happening all over the country,” find up-and-coming retailers look- he said. “But we’re in better shape. ing to grow. We have less retail space per capita Filling many of the vacant than most metro areas. spaces are retailers such as Hobby “This space will all be filled.” Lobby, GolfSmith and L.A. Fitness, Daniel Duggan: (313) 446-0414, brokers said. [email protected] 20090720-NEWS--0011-NAT-CCI-CD_-- 7/17/2009 10:38 AM Page 1

July 20, 2009 CRAIN’S DETROIT BUSINESS Page 11 Focus: Real Estate Not all happy with new work rules governing appraisers, brokers

BY DANIEL DUGGAN won’t do it for that fee.” ciation, the trade association for out of 21 offices in 10 states, the happy with the solution, many are CRAIN’S DETROIT BUSINESS The problem, say appraisers, is appraisal management companies, changes aren’t debilitating, said happy that fraud in the industry that a management company can insists appraisal management President Donald Rousseau. was finally recognized and action is For years, the dirty secret in the shop a low price around until there companies can bring efficiency to “If a management company is ac- being taken. residential appraisal industry was is a taker. Babcock and others in the market. A large management cepting a fee of $400 and trying to Garber said his group has advo- the cozy relationship between ap- the industry worry that appraisals company, covering many states, pay us $200, we just won’t work for cated that the state and federal gov- praisers and mortgage brokers. will be left to small firms willing to can bring an appraiser into its them because we are as big as we ernment dedicate more funds to in- Often, a mortgage broker intent work for discounted rates or large pool and offer clients they never are,” he said. vestigating fraudulent appraisals. on getting a loan approved would firms that can work on volume. would have found on their own, But in some cases, a management “Our industry and the others that subtly — or not-so-subtly — tell an “It’s costing the borrower the Schurman said. company will offer more volume in relate to us all take a look back … appraiser what a home needed to same amount, but the appraisers In addition, a management com- exchange for a 5 percent or even a and there were large parts of the be valued at. If the appraiser felt are now getting less for doing the pany pays the appraiser regardless 10 percent discount. The appraiser real estate industry that were un- the value was too high for a sale or same job,” said Kevin Sulak, owner of whether the transaction closes. doing the work will get the same regulated. It was the wild, wild refinancing deal to get approved, of Oakbrook Appraisals in Saline. For an appraisal company con- rate, but the corporation will take West,” he said. “But now, we’ve the appraiser would risk losing fu- But Jeff Schurman, executive di- sidered to be large, such as Troy- the loss, while getting more ac- transferred the problems.” ture referral business. rector of the Pittsburgh-based Title based Metro-West Appraisal Co. counts and making up the money. Daniel Duggan: (313) 446-0414, Deals made with a wink and a Appraisal Vendor Management Asso- L.L.C., with 100 appraisers working While many appraisers are not [email protected] nod were overlooked, contributing to cases of overvalued properties. “It was blatant fraud, but no- body cared,” said Craig Hufnagel, an appraiser in the Troy office of Cook, Pray, Rexroth & Associ- ates L.L.C., who has been hired in the past to in- vestigate bad ap- praisals. To counteract the problem, a Hufnagel set of national guidelines is starting to take hold — but it now has appraisers such as Hufnagel worried about their stream of business referrals. On May 1, the Home Valuation Code of Conduct — for all loans sold to Fannie Mae or Freddie Mac — went into effect. Among the provi- sions is that mortgage brokers can no longer hire appraisers; rather, the appraisers must be hired by an intermediary or by the lender. While Fannie Mae and Freddie Mac don’t purchase all of the resi- dential loans originated by mort- gage brokers, they are big enough players that the changes are con- sidered national policy. “They’re throwing out the cozy In your home. In your business. relationships with bad apprais- ers,” Hufnagel said. “But they’re also throwing out the good rela- Save energy. Save money. tionships with good appraisers.” The changes are having the biggest impact on one- or two-per- There’s more to saving energy than just turning off the lights or adjusting the thermostat. son firms, said Bill Garber, director of government and external rela- Whether it’s for your home or your business, DTE Energy can show you the way with tions for the Chicago-based Ap- praisal Institute, a trade association. energy audits, incentives, rebates and other programs that will help you use less energy, His group estimates a 50 percent to 60 percent decrease in revenue save more money, and even help the environment. for some firms. The larger banks have separate departments that Fannie Mae and Freddie Mac deem “compliant” Visit YourEnergySavings.com to find out how you can with the new rules. But many of the lenders need to hire appraisal save energy and save money. management companies, which then hire the appraisers. The management companies are now putting unreasonable time constraints on appraisers and ac- cepting, in some cases, half the fee that’s supposed to go to the ap- praiser, Garber said. “Asking an appraiser to turn around a job in 24 hours for $150 is unreasonable,” he said, noting that market rate for an appraisal is $350 to $400 and that a complex ap- praisal can take up to a week. Howard Babcock, president of Howard Babcock and Associates in The Power of Your Community e =DTE® Bloomfield Hills, said he has been offered appraisal work from man- agement companies at 65 percent under the market rate for the job. “I turned it down,” he said. “I 20090720-NEWS--0012-NAT-CCI-CD_-- 7/17/2009 11:13 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS July 20, 2009

CRAIN'S LIST: LARGEST HOME BUILDERS Building permits By 2008 permits issued in Southeast Michigan by county Permits are down between Company Number of Number of 12 percent and 63 percent from Address Southeast Michigan rentals Permit value Phone; Website permits issued included in 2008 2007 to 2008: Rank Top executive 2008/2007 total 2008 ($000,000) Major projects/communities built Kensington Realty Advisors 320 320 $38.0 The Courtyards, UM North campus, Ann Arbor Wayne, -26.8% 100 North Riverside Plaza, Suite 2300, Chicago 60606 NA 1,071 1. (312) 993-7800; www.kra-net.com Jim Smith, managing principal 784 Pulte Homes Inc. B 259 0 52.6 Arcadia Ridge, Northville; Creekside Village, Ypsilanti; 100 Bloomfield Hills Parkway, Bloomfield Hills 48304 398 Hills at Indianwood, Lake Orion; Pinehurst, Lyon Oakland, -36% 2. (248) 647-2750; www.pulte.com Township; Liberty Park, Novi Richard Dugas, CEO and president 1,018 Centex Homes B 167 0 30.3 NA 652 100 Galleria Officentre, Suite 200, Southfield 48034-4780 373 3. (248) 233-8300; www.centexhomes.com Washtenaw, -11.9% Lombardo Cos. 128 24 17.5 The Woods of Forest Ridge, Howell; Partridge Creek 725 6303 26 Mile Road, Washington Township 48094 215 C Village, Clinton Township; Thornton Farms, Dexter; 4. (586) 781-7900; www.lombardocompanies.com Gloede Park, Macomb Township 639 Anthony Lombardo, president Erickson Communities 100 100 9.5 Fox Run retirement community, Novi Macomb, -63.2% NA 41000 13 Mile Road, Novi 48377 1,324 5. (800) 573-2285; www.ericksonliving.com Rick Grindrod, CEO 487 NRP Contractors 93 93 6.6 Preston Pointe, Brownstown D 5309 Transportation Blvd., Cleveland, Ohio 44125 45 Livingston, -58.3% 6. (216) 475-8900; www.nrpgroup.com John Leonard, vice president 509 2007 2008 Sunrise Senior Living 78 78 12.0 Sunrise of Bloomfield Hills, Bloomfield Hills 212 7902 Westpark Drive, McLean, Va. 22102 NA 7. (703) 273-7500; www.sunriseseniorliving.com Mark Ordan, CEO Pinnacle Homes 55 55 11.5 Heritage Pointe, Chelsea; Greenbriar, Commerce 28800 Orchard Lake Road, Suite 200, Farmington Hills 48334 27 Township; Kirkway Estates, Northville; Country Club Top municipalities 8. (248) 539-9333; www.pinnaclebuilt.com Village of Rochester Hills, Rochester Hills Steve Friedman, founder; Howard Fingeroot, managing partner; and John Ranked by number of permits DePorre, president pulled: Burton-Share Management Co. Inc. 48 44 E 3.7 Hubbard Communities, Detroit 30100 Telegraph Road, Suite 366, Bingham Farms 48025 NA 9. (248) 647-8811; www.burton-katzman.com Municipality Permits Peter Burton, president Ann Arbor 377 Damone Group L.L.C. 46 46 2.5 Senior housing communities Detroit 256 850 Stephenson Highway, Troy 48083 NA 10. (248) 583-6020; www.thedamonegroup.com Novi 205 Michael J. Damone, president Macomb Twp. 124 Toll Bros. Inc. 43 0 13.4 Northville Hills Golf Club, Northville; Steeplechase of 2733 Meadowbrook Road, Suite 200, Novi 48377 76 Northville, Northville; Arbor Hills, Superior Township; Lyon Twp. 96 11. Bluffs at Lakes of Milford, Milford; Island Lake of Novi, (248) 347-5000; www.tollbrothers.com Shelby Twp. 89 Keith Anderson, group president Novi Plymouth Twp., city 89 Palazzolo Bros. E 41 NA 6.2 Rivers Edge at Cherry Hill, Canton Township; Tall Oaks, 5995 19 Mile Road, Sterling Heights 48314 NA Clinton Township; Mill River, Lyon Township Washington Twp. 85 12. (586) 739-9126; www.palazzolobrothers.com Sebastian Palazzolo, CEO Canton Twp. 72 Hunter Pasteur Homes E 39 NA 12.7 Knightsbridge Gate in Novi and Lyon Ridge in South Lyon Northville Twp., city 66 32255 Northwestern Highway, Suite 180, Farmington Hills 48334 45 13. (248) 539-5511; www.visithphomes.com Randy Wertheimer, president Lions Gate Development Co. 32 32 0.9 Lion's Gate, Davison Township Top builders 1251 Main Gate Drive, Davison Township 48423 NA 14. (810) 653-2800; www.lionsgateusa.com Ranked by value of permits:

Robertson Bros. Co. 25 0 2.9 The Hamptons Collection, Canton; Brownstones at the Builder Value 6905 Telegraph, Suite 200, Bloomfield Hills 48301 NA Park, Grosse Pointe Park; The Ellington Lofts, Detroit; 15. (248) 644-3460; www.robertson-brothers.com Saddlebrook of Plymouth, Plymouth Pulte $52,634,000 James Clarke, president and Paul Robertson Jr., CEO and chairman T.H. Marsh $38,000,000 Granger Construction Co. 24 24 2.1 Maple Village, Bloomfield Township; Canterbury-on-the- Centex $30,258,000 6267 Aurelius Road, Lansing 48911 106 lake, Waterford Township 16. (517) 393-1670; www.grangerconstruction.com Lombardo $17,539,000 Glenn Granger, president Toll Bros. $13,444,000 Michaelangelo Construction Co. 24 0 2.7 Washington Pointe, Washington Township 15360 23 Mile Road, Macomb 48044 48 16. (586) 532-0716; www.michaelangelohomes.com Michael Angelo, president and owner Livonia Builders Inc. 24 0 3.3 Single-family homes, Westland and Canton Township Homebuilder 4952 Dewitt Road, Canton 48188 36 * 16. (734) 397-9140 market share Lidia Veri, president Centex Sterling Construction Corp. 23 0 1.7 Woodbridge Estates, Detroit; Heritage Place at Magnolia, F 7.0% The Guardian Building 500 Griswold Ave. 10th Floor , Detroit 58 Detroit; Lakeside Towers, Sterling Heights Pulte 19. 48226-3213 Lombardo 10.9% (313) 963-1212; construction.thesterlinggrp.com 4.3% Larry Swank, CEO Breault Construction 22 0 2.8 NA 4902 Dewitt Road, Canton Township 48188 NA 20. (734) 397-5100 Other 73.7% Pinnacle 2.3% This list of home builders is an approximate compilation of the largest builders and developers with permits issued in Wayne, Oakland, Macomb, Washtenaw, Livingston, Genesee, Lapeer, St. Clair and Monroe counties. The Southeast Michigan permits issued and permit value were obtained from Housing Consultants Inc. unless otherwise noted. Toll Bros. B Pulte Homes is in the process of acquiring Centex. The deal is expected to close third quarter 2009. 1.8% C Total permits include 36 rentals. D Total permits include 45 rentals. *Based on builders with permits issued E Company provided information. in Wayne, Oakland, Macomb, Washtenaw, F Total permits include 55 rentals. Livingston, Genesee, Lapeer, St. Clair LIST RESEARCHED BY ANNE MARKS and Monroe counties. Rentals not included. Source: Housing Consultants Inc. DBpageAD.qxd 7/15/2009 3:33 PM Page 1

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July 20, 2009 CRAIN’S DETROIT BUSINESS Page 15

Monthly FIXING INTERNET REPUTATIONS How to manage, repair online identities, Small Biz Solutions, Page 17

REPORTER’S NOTEBOOK

Nancy Kaffer covers small business and Detroit and A niche for success Wayne County government. Call (313) 446-0412 or write nkaffer @crain.com Business owners make a go of surprising specialties

Nancy Kaffer ne of the keys to a suc- longer existed. spy gear, finding butlers or help- cessful small business is Small-business reporter Nan- ing to make sausage. O carving out a niche — cy Kaffer found four examples of Profiles of Fritz Blohm, Roger Energy rebates sometimes one that’s unusual. odd jobs and the business owners Felsner, Ben Schwartz and Michael Imagine jobs that few have heard who hold them. It turns out it is Zwick appear on this page and are for biz, too of or that many thought no possible to make a living selling Page 16.

Small-business owners who want to go green can be put off by the sometimes hefty price tags that When heirs aren’t apparent, We have accompany energy-efficient or “ environmentally friendly upgrades. attorneys call in search team churches, schools, A new statewide energy-efficiency program offers Michigan residents here was a homeless man “Some people go missing be- business owners, rebates and other financial in San Jose who’d inherit- cause they want to be missing,” incentives, but small-business T ed $40,000. And there was he said. “We have some cases husbands, wives owners may be unaware that a house painter who didn’t where we’ll have to find some- businesses are eligible for the know he had a $1.8 million trust one with a very, very common (as customers). program’s incentives too, said Jim fund. name — though ” Muir of Farmington Hills-based Finding miss- we have had Roger Felsner, Spy King Energy Optimization Inc. ing heirs is some success (holding camera pen) More education is needed to get what South- with finding a the word out, Muir said. field-based As- ‘Mary Smith.’ ” “If you take an old refrigerator in a sets International The more in- residential section, the expectation is does. formation, the NATHAN SKID/CDB that you will buy a new one that’s Since 2001, better — but if more efficient. The expectation is the company finding the heir similar in business.” has tripled in was easy, As- The Detroit Edison Co., Michigan size and rev- sets Interna- Supplier for spies builds Consolidated Gas Co. and Consumers enue, with 16 tional probably Energy Co. are offering business employees and wouldn’t get customers “custom” and $1.4 million in the job. on their suspicious minds “prescriptive” programs. sales in 2008, “It’s a case Prescriptive programs offer preset said Michael where any in- eel like someone’s watching getting big. Then we have the rebates for upgrading common-use Zwick, compa- formation you? Feel like you should nanny cams, the spy cameras, items such as lighting, heating and ny president. about a person F be watching someone? that’s been popular since we’ve cooling systems, and motors and “We definite- can help us, but Then Roger been in business. Then we have drives. ly find enough we can work Felsner’s your Roger Felsner bug detection, for people who Custom programs involve larger to keep us all with a lot less man. think somebody planted some NATHAN SKID/CDB Owner overhauls and would require before busy,” he said. Michael Zwick than the aver- Roger and Spy King kind of listening device in their and after engineering analyses. Cases are typ- age person,” he his wife, Lathrup Village home or office.” Rebates would be determined by the ically referred President, Assets International said. Heather, have The company does not provide energy savings. by attorneys or Southfield Skepticism, owned Lathrup Village-based Spy surveillance services or do detec- “If you go from one lighting program other profes- Zwick said, is King for 12 years. It specializes in tive work. to another, you don’t need sionals, Zwick said. Assets In- the company’s biggest obstacle. all manner of gadgets for cloak- Spy King’s sales have suffered preapproval,” Muir said. ternational’s fee is a percentage “We understand that if we and-dagger detective work — or as Michigan’s economy has wors- The rebate system for upgrading to of the missing heir’s bequest, a were to get a call saying, ‘We suspicious spouses. ened, Felsner said. energy-efficient lighting, he said, is fee that can be authorized by a have something for you, sign It was a fluke, he said. “The first year or so, we didn’t designed to cover 20 percent to 40 judge probating the will, an at- this contract,’ we’d be suspicious “I was in the Army, I was feel the bad economy,” he said. percent of the cost. torney for the estate or some too,” he said. “But we have done ready to retire, and I thought I “With the auto industry the way had a great job lined up when I it is, and the Michigan unemploy- “Which is pretty good,” he said. other personal representative of a lot in this area to gain people’s “That brings it from three- to four-year the deceased. confidence. We have a licensed came to Michigan,” he said. “But ment rate at 15 percent, now it’s payback to two years, and that brings Assets International locates private investigator that is bond- I got to Michigan and the job was hitting us, too. Some business it a lot closer to (the) realm of the missing heir in 94 percent of ed, we’re a member of the Better gone, and I met a guy who was owners have theft going on, but investment.” cases, Zwick said. Business Bureau, we have profes- going to open a spy shop.” they don’t think it’s worth spend- “Every case is different,” he sional genealogists, we have two No two customers are alike, ing $1,000 to put in a camera sys- For more details, see Felsner said. tem.” www.consumersenergy.com. Click on said. “Some cases are a matter attorneys on staff and we have “energy efficiency programs for of locating someone simply by an office in Southfield where “(It’s) anyone that has a suspi- Spy King has a Web site, but business.” Or visit DTE’s using proprietary databases. … we’re willing to meet with people cion that there’s a problem,” he Felsner stopped online sales www.yourenergysavings.com. In other cases we go out to do re- to show we’re not a boiler room said. “We have churches, about three years ago, turned off search, like walking through a operation.” schools, business owners, hus- by the potential for online theft. Muir encouraged small-business cemetery looking for tomb- It’s a research-heavy profes- bands, wives ...” Felsner, who hopes to match owners participating in the programs While customers are differ- last year’s sales with between to share knowledge. stones or who might be related sion, Zwick said. to whom, or looking at records “We don’t have the type of busi- ent, they’re looking for the same $500,000 and $750,000 in revenue “Little guys can’t hire consultants,” in courthouses around the coun- ness where we’re staking out things. by year’s end, also said it’s hard he said. “They should look to help one try.” someone’s home at 2 a.m. or going “Surveillance cameras, cam- to keep profits up as the price of another. If one goes through the The company also works in- on some kind of ‘French Connec- eras for homes or businesses is electronics goes down with tech- process, you should look to help a ternationally. tion’-style chase through the a lot of what we do,” he said. nological advances. friend take advantage of it.” Sometimes searching for peo- city,” he said. “We have a lot of “Vehicle tracking — you want “The prices come down. So we ple can be a hard slog. what we call ‘library geeks’ here.” to track cars or trucks — that’s try to sell more.” 20090720-NEWS--0016-NAT-CCI-CD_-- 7/17/2009 10:35 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS July 20, 2009 Small Business Monthly Butcher supply adapts as market segment gets leaner hen Fritz Blohm’s family he said. “Being the third generation percent is retail, from walk-in cus- bought Butcher & Packer doing this business, I grew up in it, tomers, catalog or Internet sales. W Supply Co. in 1951, there and I expanded outside Detroit to In addition to industrial supplies, were seven butcher supply compa- other places in the United States.” the store sells do-it-yourself brining nies in Detroit’s Eastern Market Blohm installed computers be- or sausage kits, and also blends cus- area. fore such advances were business tom spices for industrial or person- Fritz Blohm Today, de rigueur. al use in meat processing. Butcher & “I started putting in a computer The butcher supply market has President and CEO Butcher & Packer Packer is system and things of that nature changed, but so have consumer Supply Co. the last man back in the early 1980s,” he said. tastes, Blohm said. Detroit standing. “Now, everybody has computers, “You always stay on top of these The com- but back then there weren’t that trends in foods and flavors, what pany has adapted with the times many people that had them. We people want,” he said. and has a niche in supplying in- had interoffice e-mail in 1981, 1982 Modern Americans crave a dustrial supplies and unique … that’s basically what’s given me more complex palette of flavors — spices for meat processing. ability to keep track of things. And and also eat less red meat, he said. “The whole industry has I don’t have to outsource it.” “They want something to stimu- changed,” Blohm said. “The East- Another resource is the compa- late their mouths. You have chick- ern Market area used to be a mar- ny’s human capital. en, it’s basically a tasteless piece of ket where the local slaughterhous- NATHAN SKID/CRAIN’S DETROIT BUSINESS “It’s a business where you really meat. You have more and more es and butchers were, there was Third-generation owner Fritz Blohm credits expertise and technology with the have to grow into it,” he said. marinated meat products in the Eastern Market and Western Mar- survival of Butcher & Packer Supply Co. as similar businesses disappeared. “Everyone in it’s been in the meat grocery store than we’ve have ever ket, and there were a lot of animals industry or food industry for had. … Right now on my desk I processed locally. They needed packers — and suppliers for same Ask Blohm how Butcher & Pack- years.” have a Mediterranean flavor, a places that would supply ingredi- — shrank as advances in refrigera- er survived, and he’ll give two an- Today, about 70 percent of tequila-lime flavor, apricot flavor, ents like spices and twines to tion made it possible for fewer swers: expertise and technology. Butcher & Packer’s more than $5 praline pecan flavor … you get into process the meat.” companies to distribute meat in a “I basically kept up with technol- million in annual revenue comes all these things because people The number of butchers and wider area. ogy and kept on moving forward,” from industrial sales. About 30 want them.” Weak economy or not, butlers, personal chefs in demand arper Associates used to spe- agers, executive assistants for mal wear and a silver salver, the oc- There’s a fine line to walk.” them and to make sure the cooking cialize in placing employ- both the office and residence,” he cupation is still in demand, Estate management is about 25 meets or exceeds expectations,” he H ees in the hospitality trades said. Schwartz said. percent of Harper’s business, said. “Also, individuals in that lev- — hotels, clubs, resorts. Ben Schwartz If you’re “It’s always difficult to find pro- Schwartz said. el want to make About 15 years ago, President President not quite sure fessionally trained individuals,” he The company sure someone Ben Schwartz said, the company Harper Associates what a “house said. “A lot of people who would also places em- It’s always been knows how to started receiving customer re- Farmington Hills manager” is, like to do this work don’t have the ployees in health “ keep a clean quests for personal chefs. think butler demeanor, personality or class and care professions, hard to find good kitchen.” “We got involved in placing per- or majordomo. While modern but- polish. And there are times when sales and in non- Clients pay a sonal chefs, placing house man- lers don’t come equipped with for- employers are very demanding. residential hospi- people. Right now, one-time place- tality positions. ment fee: a per- The vetting we have quite a few centage of the em- process is thor- ployee’s salary. ough. Like a tradi- openings. Jobs listed on tional employ- ” the Harper Web ment agency, Ben Schwartz, Harper Associates site range from a Harper serves as house manager/ an interface between the applicant and client, checking background private chef for $90,000 to $100,000 and references. at homes in Michigan and Florida “We like to interview everyone to a private chef with some au pair we represent in our office so we functions for $40,000 to $50,000. can make sure they have the ap- Schwartz said that despite the propriate overall presentation,” he economy, demand for estate man- said. agement professionals has re- The résumé is passed along to mained high — the folks Harper the client, and in the case of, say, a serves have remained insulated personal chef, the company sets up from the vagaries of the economy. a tasting. “It’s always been hard to find “They may do a trial run, cook- good people,” he said. “Right now, ing one or two days for the family, we have quite a few openings for to see if there’s chemistry between talented estate professionals.”

NATHAN SKID/CRAIN’S DETROIT BUSINESS Harper Associates President Ben Schwartz poses with a chef figure in the office that represents part of his business: supplying clients with personal chefs. 20090720-NEWS--0017-NAT-CCI-CD_-- 7/17/2009 10:34 AM Page 1

July 20, 2009 CRAIN’S DETROIT BUSINESS Page 17 Small Business Monthly Companies should check image online There’s an old sales adage called “the rule of 200,” says Mark Young, GUARD YOUR GOOD NAME chairman of Redford Township- Online tools to monitor reputation: based advertising and marketing agency Western Creative Inc. www.socialmention.com: “It’s like Google, but for social “The rule of 200 is based on the networking,” said Brandon idea that the average wedding and Chesnutt, Identity Public Relations. average fu- Google Alerts: The free service neral had allows users to set up automated Small Biz about 200 at- alerts based on keyword searches. Solutions tendees,” he Users can search news sources said. “In the and blogs. old world of Blog searches: Google “will go marketing, if through any site on a blog you had a bad template,” said Chesnutt. “That’s relationship a service a lot of companies with a cus- probably don’t use but should.” perfection tomer, you www.namechk.com: Allows could damage users to check the availability of a by design Nancy Kaffer yourself with username across more than a hundred social networking sites. 200 people, Companies can ensure that the because that was the sphere of in- brand name hasn’t been hijacked, fluence of most people.” Chesnutt said, and can check In the Internet age, old rules name availability to develop a don’t apply anymore. One disgrun- consistent identity across social tled employee or customer can fire media platforms. off a string of negative reviews and comments, leaving a befuddled business owner with a bad online happy in Livonia, I’m so sorry to CALL US TODAY AND EXPLORE YOUR DESIGN OPTIONS rap viewable by hundreds or thou- you hear had a bad experience with sands of potential customers. our business. We take this type of 248 855 7040 “Search engines have become thing very seriously, would you DavisInteriorDesign.com the gateway for any company, re- please contact me directly so we gardless of whether you’re B-to-B can get this resolved.’ ” or B-to-C,” said Brandon Chesnutt, Customer service is the new PR, an account executive at Bingham Chesnutt says. Farms-based Identity Marketing and “If you have a negative reputa- Public Relations, who works in social tion in that sphere, it’s going to media. “The first place people look come up,” he said. “Smart compa- is online, and that means search re- nies are paying attention. Even if sults are just as important as any they’re not actively participating other brand work you do.” online, they’re paying attention to A company should consider its what bloggers and social media online identity from an internal are saying.” and external perspective, he said. Another concern is what Ches- “A lot of employees are on these nutt calls “brand-jacking” — when (social) networks and could be in- someone from outside the company advertently talking about their registers a domain name or user companies,” Chesnutt said. “It’s name on a social networking site in the smart for an organization to set the guise of a company representa- up some guidelines for how staff tive. and executives operate online.” When an imposter recently Such a policy should include opened a faux account on the mi- cans as well as can’ts, he said. croblogging site Twitter.com, posting But even a well-meaning, sup- as a representative of oil giant Exxon portive employee can dilute the Mobil, “It makes them look like they voice of the company’s brand, weren’t paying attention to they’re Chesnutt said — so it’s a good idea own brand,” Chesnutt said. to outline who can speak for the And checking such things once company online. isn’t enough, Young said. To monitor reputation outside “There needs to be a regiment- the company, the first step is a ed, disciplined process within simple Internet search. every company to go back and “The first thing you need to do is retest or re-examine all of those (search) your company name on sources, because everything in the the major search engines and find world of the Web is instant,” he out what’s there,” Young said. said. “You may need to look at it “Then you need to search your every day, every week or every own name plus ‘complaint’ or month.” ‘scam.’ You might go Google your Large companies might have own name and say, ‘Oh there’s full-time staffers to monitor blogs nothing out there about me,’ then and social media or hire “reputa- Google with ‘complaint’ or ‘scam’ tion managers,” Young said. and find 300 items.” For small businesses, several Also search for the review sites free online resources duplicate for your industry, he said. functions of paid subscription ser- “Review sites matter — con- vices used by big businesses. sumers really pay attention to re- “From Google alerts to persistent view sites,” Young said.” searches, to tools that allow you to If you’ve received negative re- monitor various social networks … views on a site, it’s best to ad- the tools are out there ...” he said. dress them. “Just because it’s new technology, “Most review sites have a way reputation is still the most impor- for the business management to log tant thing.” on and address the complaint as the Nancy Kaffer: (313) 446-0412, manager,” Young said. “ ‘Dear Un- [email protected] 20090720-NEWS--0018-NAT-CCI-CD_-- 7/17/2009 11:41 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS July 20, 2009

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

CareerTransition EMPLOYMENT CALENDAR Learn to write a business plan more information, contact Steven Name: Linda Angell, 56. State University when an administrator Hughes, program director of the The Michigan Small Business and Education: Bachelor’s degree in psy- suggested she try to commercialize her executive MBA program, at Technology Development Center is chology from the University of Kansas, and expertise on driver distraction. Angell se- [email protected] or presenting a workshop on writing master’s and doctoral degrees in experi- cured entrepreneurial training and re- contact Automation Alley’s re- a business plan, from 6-9 p.m. mental psychology from the University of sources from the SmartStart program at source center at (800) 427-5100 or Thursday at Oakland County’s ex- Colorado. Wayne State University’s business incu- [email protected]. ecutive office building (41 West), Past career: She spent 27 years as a hu- bator, TechTown. She also took part-time For information on Davenport 2100 Pontiac Lake Road, Waterford man factors specialist at General Motors jobs with the Wayne State University Med- University, visit Township. Corp. Angell most recently worked at the ical School and the Virginia Tech Transporta- www.davenport.edu. Workshop participants will company’s Warren Technical Center on tion Institute while developing the new learn what elements are found projects to prevent driver distraction and business. commonly in effective plans and Other events crashes. Obstacles overcome: “I knew very little will work on developing plans for New career: Founder of Touchstone Evalu- about starting or running a business. I Ⅲ A free job fair is scheduled for Linda Angell their own businesses. ations Inc., a startup research firm that needed to learn about it in order to do it, 9 a.m. to 1 p.m. Friday at Double- Assistance in the process and in- Former career: tests consumer electronics such as cell and TechTown’s SmartStart program is tree Hotel Dearborn, 5801 South- formation on resources will be Human factors phones and navigation devices to deter- helping me overcome the knowledge and field. Scheduled companies in- specialist at GM provided. mine whether they distract drivers. The skills gap that I have.” Angell initially clude MiTel wireless, Aflac Cost is $40 and includes a busi- New career: company hopes to sell its analysis ser- struggled to juggle the demands of two insurance and Regent Financial Founder of startup ness plan guidebook. Register on- vices to companies such as J.D. Power and part-time jobs with efforts to grow her Group. research firm line at www.oakgov.com/peds Associates and Consumers Union, publisher new venture. She also had to become ac- For information, call (641) 715- /calendar and click on the date or of Consumer Reports, as well as to manu- customed to a tighter budget and strug- 3900 ext. 50832# or go to www.michi- call (248) 858-0783. facturers of portable electronic devices. gled to find time for family life and re- ganexpoexperts.com or www.oak- The company also is developing its test- sponsibilities. One big obstacle remains: landcountynan.com. Sponsored by ing system as a means of diagnosing finding her first customers. “It is often Davenport University- the Oakland County chapter of the Alzheimer’s disease, because the condi- necessary to evolve your business con- National Action Network and tion makes people more prone to distrac- cept so that it matches market opportuni- Automation Alley open house set MichiganExpoExperts.com. tion, Angell said. ty, and we are currently in the process of Automation Alley, in partnership Ⅲ Global Recruiting Solutions is Why she decided to change careers: With updating our business concept to im- with Davenport University, will host hosting a Diversity Career Fair the future of her career at GM uncertain, prove revenue opportunities.” an open house 4-7 p.m. Tuesday at from 9 a.m. to 2 p.m. July 28 at the Angell decided to strike out on her own Advice for others: “Be ready to ask for Automation Alley’s headquarters, Embassy Suites hotel, 28100 as an entrepreneur. When she turned 55 help and be open to accepting it as you 2675 Bellingham, Troy, to discuss Franklin Road in Southfield. in 2008, becoming eligible for GM’s early make a change.” When taking advantage a 25 percent discount that is of- Participating organizations in- retirement package, Angell took the of- of business incubators such as Tech- fered to all Automation Alley clude the FBI, Quicken Loans, Wad- fer. “I saw that I had an opportunity,” she Town, “use the fun and excitement of members to DU’s many degree of- dell & Reed Financial Advisers, Auto said. “I could retire early and initiate a change to power you through the chal- ferings. Owners Insurance and Sears Corp. career change for myself to pursue some lenges you will face.” There is no cost to attend, and For information, call (678) 319- longstanding interests — and, in doing If you have made a similar change in registration is not required. For 4307. so, perhaps also do something positive to- your career, or know someone who has ward helping others in the midst of this made an interesting career transition, con- change.” tact Andy Chapelle, managing editor at How she made the transition: Angell was Crain’s Detroit Business at performing research funded by Wayne [email protected].

WSU event targets Unprecedented challenges. CAREER MOVES entrepreneurs A free event to learn about oppor- Unique needs. tunities for creating innovative FRANCHISE OPPORTUNITIES REAL ESTATE companies is being held Saturday at Distinctive solutions. the McGregor Memorial Confer- Great Franchise Real Estate Sales Associate Opportunity for We are seeking a determined, dedicated and ence Center at Wayne State University. Golf Enthusiasts ambitious self-starter with good work habits to lease re- FastTrac to the Future is a pro- Prime markets now available in SE Michigan. tail shopping centers in Troy and Canton. You need to gram created by the New Economy Join a recognized leader in the retail golf have a pleasant phone manner and professional ap- Initiative and the Kauffman Founda- pearance, and should be able to work independently. %DOXVWHU3DUN³7UR\0LFKLJDQ·VSUHPLHURIÀFH industry. tion to provide a jump-start to en- You also need strong oral and written skills, computer SDUN³KDVDYDULHW\RI WHPSRUDU\RIÀFHVXLWHV Contact Frank Hutton - 248-994-0553 trepreneurship through mentor- www.progolfamerica.com proficiency and the ability to travel. DYDLODEOHIRUORFDODQGRXWRIWRZQÀUPVKHOSLQJ The position requires a minimum of five years related ing, training and resources. Advertise your experience in retail leasing. The ideal candidate will The featured speaker is Chris Chrysler and GM restructure and prepare have a strong ability to negotiate and make decisions. Gardner, owner and CEO of Gard- for a viable future. goods and services in Commission based pay structure. ner Rich L.L.C. The author of The Please e-mail your resume to New York Times No. 1 bestselling Crain’s Detroit Business [email protected] book The Pursuit of Happyness, which was turned into a movie 3UHEXLOWVXLWHVLQHLJKWRI WKHÀQHVWRIÀFHEXLOGLQJVLQ7UR\ starring Will Smith, will address the keys to overcoming obstacles Move-in ready | All terms and sizes available and breaking cycles. Attentive on-site management Each participant will be able to Outstanding location close to area amenities and highways attend four sessions and can choose Convenient access to Detroit Metro airport from 12 topics. Some session topics include intellectual property, prof- iting from social media, introduc- FOR LEASING INFORMATION, PLEASE CONTACT: tion to helpful organizations such Mark Collins 248.351.2021 ‡ Paul Beitz 248.320.6831 ‡ Jeffrey B. Bell 248.351.2074 as TechTown and Ann Arbor Spark, www.cbre.com/detroit and a pitch-and-comment session. The event runs from 7:30 a.m. to 6 p.m. To register, follow instruc- tions at http://wayne.edu/fast- trac/. Contact: Taniqua Carter, 1(:.,1*67752<0,‡:::%$/867(53$5.&20 (313) 483-0392 or taniqua.fasttrac @techtownwsu.org. 20090720-NEWS--0019-NAT-CCI-CD_-- 7/17/2009 11:10 AM Page 1

July 20, 2009 CRAIN’S DETROIT BUSINESS Page 19

PEOPLE ADVERTISING president, Amerisure Mutual Insur- manager, NSF International Strategic ance Co., Farmington Hills, from Stacey Gizinski to vice president and IN THE SPOTLIGHT Registrations Inc., Ann Arbor, from principal, UHY L.L.P., Troy. business development manager, Veri- executive producer, McCann-Erickson Marygrove College in Detroit has USA Inc., Birmingham, from senior Kendra Pond to fy Inc., Connersville, Ind. producer; also Michael Limbert to vice named Darrin Rankin to the new CFO, Invescor president and creative director, from position of vice Ltd., Farmington SUPPLIERS associate creative director; Jennifer president for Hills, from con- Russell to vice president, remaining student affairs troller, Atwell- Juergen Luft to engineering manager traffic manager; and Susan Stallings and enrollment Hicks L.L.C., Ann of North American technical center, to vice president and creative direc- management. Arbor. Pierburg Inc., Auburn Hills, from ad- tor, from associate creative director. Rankin, 44, Joseph Salvia, con- vanced engineering manager. sultant for Bravo had been vice Smith Partridge ENGINEERING 36 L.L.C., High- president for Roger Smith, managing partner, enrollment land, and Lynn Steven Willobee Torossian, presi- Garan Lucow Miller P.C., Troy, and EOPLE GUIDELINES to community de- services and Pond dent of DMC Dennis Partridge, partner, Detroit; P velopment man- student affairs Huron Valley-Sinai Hospital, Com- elected to firm’s executive committee. Rankin at Clark Atlanta Announcements are limited to ager, Soil and Ma- merce, appointed to board of directors, Jonathan Engman, shareholder, Fab- terials Engineers University, Atlanta. management positions. Nonprofit Huron Valley State Bank, Milford. rizio & Brook P.C., Troy, appointed and industry group board Inc., Plymouth, He earned a bachelor of arts Jeff Reese to di- vice chairman of real property com- appointments can be found at from senior pro- degree in pre-law/sociology from mittee, Oakland County Bar Associa- rector of internal www.crainsdetroit.com. Send ject professional, Loyola University in New Orleans, a audit, Asset Ac- tion, Bloomfield Hills. NTH Consultants master of science degree in higher ceptance Capital submissions to Departments, Ltd., Lansing. education administration from Corp., Warren, NONPROFITS Crain’s Detroit Business, 1155 Russell Sykes to , and a Ph.D. in from manager, Gratiot Ave., Detroit, MI 48207- Syracuse University , president, Ricmar Inc., senior vice presi- Grant Thornton Richard Nodel 2997, or send e-mail to Willobee higher education administration Southfield, to president, Jewish Com- dent, SmithGroup with an emphasis on urban higher L.L.P., Chicago. [email protected]. Inc., Detroit, from office director. munity Relations Council, Bloomfield Releases must contain the person’s education from Jackson State Hills. University in Mississippi. LAW name, new title, company, city in FINANCE which the person will work, former Marygrove is an independent Dennis Schultz to SERVICES Gordon Krater to managing partner, title, former company (if not Catholic liberal arts college. Reese member, Dawda, Plante & Moran P.L.L.C., Southfield, Mann, Mulcahy & Doug Brown to managing director, promoted from within) and former from managing partner of industry from corporate controller of internal Sadler P.L.C., Bloomfield Hills, from Veritas Global L.L.C., Bloomfield Hills, city in which the person worked. specializations group. reporting, Affinia Group Inc., Ann Ar- member, Butzel Long P.C., Detroit; from senior vice president, Mara Cap- Photos are welcome, but we cannot Michelle Wright to controller senior bor. also Richard Hewlett to member, from ital L.L.C., New York. guarantee they will be used. vice president, TCF Bank, Livonia, Angela McBride to internal audit vice member, Butzel Long P.C., Detroit. Jeff Carr to business development

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Page 20 CRAIN’S DETROIT BUSINESS July 20, 2009

BUSINESS DIARY CONTRACTS Hills, and Johnson Refrigerated Truck components, plus an optional Adap- duce extra high voltage 765 kilovolt Tanner Friedman, Royal Oak, has been Bodies, Rice Lake, Wis. — will enable tive Highbeam Assist, controlled by a circuit breakers and 765 kilovolt pow- hired by the Specs Howard School of Akamai Technologies Inc., Cambridge, the organization to rescue 850,000 ad- camera developed by Continental. er transformers. Broadcast Arts, Southfield, to provide Mass., and Fry Inc., Ann Arbor, an e- ditional pounds of fresh food annually public relations and marketing sup- commerce provider, announced that St. Louis Rams have selected ZF Friedrichshafen, Northville, a man- at a 30 percent fuel savings. AstroTurf, Raleigh, N.C., for a new syn- ufacturer of vehicle driveline and port to promote the opening of its new Fry will become a reseller of Akamai’s training facility, “Specs Howard on The Linux Box, Ann Arbor, a profes- thetic practice field at Rams Park. The chassis technology, and ISE Corp., Dynamic Site Accelerator, which is Location,” at the Grace & Wild Studio sional services organization specializ- joint construction effort between Gen- Poway, Calif., a designer and manu- designed to increase site performance, Center motion picture production ing in open-source technology and the eral Sports Venue L.L.C., Rochester, improve page response times and ac- facturer of hybrid propulsion systems complex in Farmington Hills. celerate the delivery of content and Linux platform, has appointed Fein- AstroTurf and Munie Greencare Pro- and components for heavy-duty vehi- transactions for e-commerce. tuch Communications, New York, as fessionals, Caseyville, Ill., will leave cles, say they will collaborate on de- AspenTech Consulting Group Inc., Ply- mouth, a customer relationship man- agency of record. the field ready in time for the start of velopment and supply of a line of par- Forgotten Harvest, Oak Park, metro agement and contact management training camp in late July. allel-electric hybrid drive systems and Detroit’s only mobile food rescue or- Continental Corp., Auburn Hills, an company, has joined the Business Im- components for the North American ganization, has taken delivery of its international automotive supplier, ITC Holdings Corp., Novi, Mitsubishi provement Team, Bloomfield Hills, a first hybrid truck. The Class 7 Freight- announced that it is contributing a Electric Corp., Tokyo, and Mitsubishi vehicle markets. ZF and ISE have consortium of independent consulting liner — donated by Daimler Trucks variety of components and systems to Electric Power Products Inc., Warren- signed a memorandum of understand- firms. North America, Portland, Ore., Daim- the new Mercedes E-Class vehicles, dale, Pa., are expanding their existing ing that outlines plans for an intended Paradox Interactive, New York, has ler Financial Services, Farmington including airbag, brake and chassis business alliance to develop and pro- strategic partnership. adopted Plymouth-based Stardock’s Game Object Obfuscation to protect Paradox PC game titles from piracy, beginning with the Paradox title “Majesty 2” and continuing on with other titles for both retail and elec- MARKET PLACE REAL ESTATE tronic software sales. NEW PRODUCTS ANNOUNCEMENTS& BUSINESS SERVICES AUCTIONS Altair Engineering, Troy, a global SERVICES provider of technologies and services Attention Businesses OPEN HOUSES: for managing computer-intensive Detroit MI. Attention: Ric-Man Detroit, Inc. is Newly formed private equity group looking for July 26th and August 2nd from 12-3PM workloads, has released PBS Grid- soliciting cost proposals from qualified Works 10.1 for workload scheduling. DHB/DBB/MBE/WBE Subcontractors/Vendors businesses who need a minimum # # investment of $3 million. # # certified with the City of Detroit for the DWS 876 & Auction Irish Hills - Web site: www.pbsgridworks.com. Must show growth and job creation. 877 Projects. Bid due date is July 29, 2009. Projects # # Schreiner ProTech, Southfield, intro- consist of rehabilitation/lining of existing circular and Evans Lake Advanced Business Capital 800-511-0597 duced its miniature double-sided adhe- non-circular storm sewers, sanitary sewers and water Sunday August 9th at 1PM # 1205 Lemm Lane # main lines, 8" thru 120’ diameter. All disciplines of # # sive parts especially designed for very work specific to rehabilitation/lining including resto- Preview & Registration at Noon # Tipton, Michigan # small assembly components. Web site: ration of existing sewer and water main systems are WE SELL BUSINESSES available for solicitation. Those interested in providing www.schreinerprotech.com. any of the services required are encouraged to con- Confidential & Professional Service. Hey! We're Going to the Lake! The Michigan Association of Certified tact us prior to July 20, 2009 at; Specialize in Manufacturing, Distribution & Public Accountants, Troy, in partner- Ric-Man Detroit, Inc Business -To-Business Service Industries. ship with Hospice of Michigan, De- 1001 Woodward Ave. Suite 400 Confidential Business Sale, Inc. troit, has created a resource guide, Detroit, MI. 48226 www.ConfidentialBusinessSale.com Phone: 313-833-2242 Fax: 313-964-8356 “Financial Affairs: At the End of Detroit Metro Office 313-221-9378 Life.” The guide is designed to help counsel families of patients under the BUSINESS & care of Hospice of Michigan on how to INVESTMENTS attend to the end-of-life financial is- sues and responsibilities. Web site: BUSINESS OPPORTUNITIES Swim and Fish in your own backyard. Spectacular newly built home. 3500 +/- sq ft. Once www.michcpa.org. in a rare while will a truly magnificent home such as this to be available for auction. Built Trusted Advisors without compromise. Gourmet Kitchen w/red birch cabinets and granite counters, 2-story NEW SERVICES Revenue Sharing vaulted Great Room with fireplace overlooking Lake. Elegant Master suite and bath, private Harvest Michigan, Madison Heights, living space above garage with 2 beds and bath for guest, 4 car garage, generator, 3/4 acre a Michigan-farmed and produced An established (11 years) and principled Professional Employer Organization (PEO), which provides lot built in 2005. A home to be experienced in, an investment in yourself. products provider, now offers home Human Resource Management services on an outsourced basis to the small and mid-sized busi- delivery to the Detroit area through ness sector, is seeking to institute an integrated alliance to promote a reciprocal trade relationship ROSE AUCTION GROUP, LLC Suburban Home Delivery Services, with Insurance Brokers, CPAs, Management Consultants, and various B2B Sales Professio- BETH ROSE, CAI AUCTIONEER Madison Heights. Web site: www. nals. This PEO has created a successful and unique footprint that has contributed to high client 2009 Michigan State Auctioneer's Champion harvestmichigan.com. retention. The ultimate goal of this arrangement is to complement your existing business service 877.696.7653 www.RoseAuctionGroup.com AAA, Dearborn, has launched a new se- offerings and leverage areas of mutually beneficial interests. nior safety and mobility Web site that ¾ Compensation will be paid monthly on a 100% residual basis; APARTMENT BUILDINGS APARTMENT BUILDINGS provides families of older drivers with ¾ Confidentiality of current client base and commissions safeguarded; information related to senior mobility ¾ Opportunity to broaden existing service offering; challenges and tools to help extend safe ¾ Publicize and endorse business partners to foster and develop ancillary revenue sources driving and assist in discussions about S transitioning from driver to passenger. Interested parties please contact business principle, David Otto, at [email protected] to schedule a FOR SALE FOR ALE Village Square Apartments Maple Glen Apartments Web site: www.aaaseniors.com. meeting to further discuss this opportunity. Baker College, Auburn Hills, is offering FRANCHISE OPPORTUNITIES several new programs this fall, includ- ing a legal studies bachelor’s degree; an LPN-to-RN associate degree; a 911 telecommunications certificate; and a coffee!! certificate, associate and bachelor’s de- 17150 Meyers Rd • Detroit, MI 2143 Winslow Drive • Columbus, OH gree in criminal justice. Telephone: opportunity!! •Lender Sale •Lender Sale - 706 Units (248) 340-0600. Web site: www.baker.edu •190 Units •All Reasonable Offers Considered interested?? •$2,660,000 or $14,000 Per Unit •$6,354,000 or $9,000 Per Unit STARTUPS •67% Occupied •Value Add Opportunity Rush Communique, an event-planning •Property Being Sold “As Is” •Property Being Sold “As Is” marketing firm, has opened at 25882 franchise?? •All Available Due Diligence Provided •All Available Due Diligence Provided Prior to Orchard Lake Road, Suite 211, Farm- Call Kate Blackford (517) 482-8145 Prior to Bid Deadline Bid Deadline ington Hills. Telephone: (248) 579-3313. For More Info Please Contact: 248.324.2000 For More Info Please Contact: 248.324.2000 Light Support Services L.L.C., an emer- or [email protected] Rich Deptula Barry Swatsenbarg gency information database provider, [email protected] [email protected] has opened a Web-based company in Barry Swatsenbarg 34975 W Twelve Mile Rd Rich Deptula 34975 W Twelve Mile Rd www.biggby.com [email protected] Farmington Hills, MI 48331 [email protected] Farmington Hills, MI 48331 Commerce Township. Telephone: www.friedmanrealestate.com www.friedmanrealestate.com (888) 666-1952. Web site: www.light BUSINESSES FOR SALE BUSINESSES FOR SALE supportservices.com. COMMERCIAL PROPERTIES COMMERCIAL PROPERTIES Mobile Truck Repair Business Prototype and Short Run Turn Key, 100+ Fleet Accounts, Service Vehicles, Bankruptcy sale of commercial building “Special” DOWNTOWN “Fifty Cents” Stamping Company For Sale Tools & Equipment, $400K Neg. in Detroit 3300 E. Jefferson, Detroit (behind Chase Bank) 30 Years in Business. Clinton Twp. Business Reply To [email protected] 14410 Meyers Rd, includes cell tower lease. 27,000 SF. Commercial/Warehouse DIARY GUIDELINES with building and all necessary equipment to Current offer: $140,000. Sale date: July 30, 2009. Price: $0.50 PSF, NNN, First Year make prototype and small quantity stampings. INVESTMENT OPPORTUNITIES More information: Tracy M. Clark, Esq. 248-352-4700 Call: Chris Monsour 248-948-0107 Send news releases for Business Automotive and non-automotive. Owner Diary to Departments, Crain’s would like to retire. Call for all details. Wanted: Retired/Active Supermarket GM NO BROKERS. CALL 586-463-4000. Either interested in investing and/or Detroit Business, 1155 Gratiot working as a consultant. SE Michigan Ave., Detroit, MI 48207-2997 or EQUIPMENT & email to: [email protected] send e-mail to cdbdepartments@ crain.com. Use any Business Diary MERCHANDISE CRAIN’S CLASSIFIEDS item as a model for your release, WORK! and look for the appropriate OFFICE FURNITURE To Place Your Ad Call category. Without complete information, your item will not run. MUST SELL, OFFICE CLOSED (313) 446-6068 Desks $99, Chairs $39, Files $49, Partitions $50, or Photos are welcome, but we cannot Lateral Files $99, Cubicles, Office Phone Systems Fax (313) 446-1757 guarantee they will be used. Call (248) 548-6404 or (248) 474-3375. 20090720-NEWS--0021-NAT-CCI-CD_-- 7/17/2009 5:05 PM Page 1

July 20, 2009 CRAIN’S DETROIT BUSINESS Page 21 Hospital: Turning around ■ Area hospitals join statewide From Page 3 It also is the only for-profit hos- chases) by joining McLaren,” pital in Michigan. Sevillian said. This amounts to 65 Purchased out of bankruptcy for percent of purchases, he said. $7 million, the hospital is 60 per- Doctors’ Hospital also has been effort to reduce readmissions cent owned by 42 physicians, 35 able to negotiate more favorable percent owned by McLaren and 5 contracts with health insurers and BY JAY GREENE CEO of Mpro. hospitals are St. John Hospital and percent not yet allocated, said Dr. vendors as part of the McLaren CRAIN’S DETROIT BUSINESS One way hospitals can reduce Medical Center, Detroit; St. John Anil Kumar, a urol- chain and through readmissions is through more ef- Macomb-Oakland Hospital, Warren; ogist and chairman shrewd business Thirteen hospitals in South- fective discharge planning that Providence Hospital Medical Center, of the hospital Physicians are tactics. east Michigan and 14 others involves clearer communication Southfield; Providence Park Hospi- board. “ For example, Ku- statewide have signed up for a with patients. It also involves tal, Novi; and St. John River District Eventually, Ku- more involved in mar said the hospi- three-year study to reduce costly closer coordination with other Hospital, East China Township. mar said, it is ex- tal advised some of hospital readmissions, according providers, including primary Other hospitals in the study pected that employ- the hospital than its orthopedic im- to the Michigan Health and Hospital care physicians, home health are University of Michigan Hospitals ees and vendors will plant vendors that it Association and Mpro, a Farming- agencies and nursing homes. and Health Centers, Ann Arbor; be offered owner- ever before. wanted steep dis- ton Hills-based quality-improve- “This pro- Henry Ford Hospital, Detroit; Bots- ship stakes. ” counts. ment organization. ject is about re- ford Hospital, Farmington Hills; Funded by a $1 million grant “The model was Dr. Anil Kumar, “I am on the staff moving silos of and Crittenton Hospital Medical from the Commonwealth Fund, the created to provide Doctors’ Hospital of Michigan of Detroit Medical care so that dif- Center, Rochester Hills. health care as need- Center. We told our national project — first reported ferent types of “Michigan hospitals realize ed to the community and to be vendors we would not pay more about in the April 27 Crain’s De- facilities and that the recovery process has highly cost effective,” Kumar said. than DMC pays. They came down troit Business — has a goal to re- practitioners only just begun when patients “Physicians are more involved in on their price,” Kumar said. duce readmission rates by 30 per- communicate leave our facilities and return to the hospital than ever before. Our But the biggest cultural change cent. Hospitals in Washington effectively and their lives,” Spencer Johnson, employees and (Sevillian) have that helped reduce patient care ex- and Massachusetts are partici- work together president of the hospital associa- done a tremendous job so far.” penses has been the greater in- pating in similar projects. with patients tion, said in a statement. Yellan When North Oakland closed on volvement of physicians and em- Nearly 20 percent of Medicare and their fami- “How patients transition from Oct. 28 for three days, the hospital ployees in the operation of the patients are readmitted to hospi- lies to ensure treatment, follow- hospital care to their home or had already defaulted on $38.5 mil- hospital, Kumar said. tals within 30 days and 33 percent up visits, and appropriate man- long-term care facilities is the key lion in bonds issued by the Pontiac “I’ve been here 17 years and am are readmitted within 90 days, agement of care,” Yellan said. to the effectiveness of their treat- Hospital Finance Authority. on (the medical staffs) of … other costing Medicare $17 billion dol- Two Southeast Michigan ment,” Johnson said. “By identi- Bondholders received approxi- hospitals,” Kumar said. “To get lars in 2004 alone, according a health systems participating in fying and working to reduce mately $3 million as part of the things done, we would have to study in the April 1 New England the study are Detroit Medical Cen- avoidable rehospitalizations, bankruptcy agreement, and the fight with administrations. This Journal of Medicine. ter and St. John Health System in Michigan hospitals will benefit city of Pontiac forgave the debt model does away with that. “The collaboration is unique in Warren. not only our patients and commu- owed it. “The key to success in an insti- its communitywide approach to DMC’s hospitals are Sinai-Grace nities, but other states will be able By Nov. 7, the new ownership tution is to have total involvement find solutions to improve patient Hospital, Detroit Receiving Hospital, to learn from this initiative.” group had finalized the sale at U.S. with doctors.” care and safety across all health Harper University Hospital and Jay Greene: (313) 446-0325, Bankruptcy Court in Detroit. Using a new multi-disciplinary settings,” said Robert Yellan, Hutzel Women’s Hospital. St. John’s [email protected] McLaren paid $5 million and the rounding process, physicians, doctors contributed $2.5 million, nurses and allied health practi- with $500,000 going toward opera- tioners work as a team to improve tional costs, Sevillian said. patient care and reduce length of Jack Weiner, CEO of St. Joseph stays. Sevillian also makes Mercy Oakland in rounds. REAL ESTATE Pontiac, who As a result, Sevillian said doc- last year called tors and nurses have been able to AUCTIONS INDUSTRIAL PROPERTY WATERFRONT PROPERTY for Doctors’ reduce length of stays to four and a Hospital to re- half days from six. main closed, Another way Doctors’ Hospital Pontiac, Michigan SPECTACULAR CANADIAN said he still be- has cut expenses and boosted pri- Warehouse Space for Lease PROPERTY ON LAKE SUPERIOR lieves Pontiac mary care services is through the has too many use of its 18-physician family prac- Almost free! hospitals. tice residency program, Kumar • Rates as low as 17¢ a month gross “We are at 65 said. • Warehousing or Manufacturing percent occu- Weiner Emergency physicians have • 5,000 to 200,000 sq.ft. for lease pancy (based on licensed beds), and been trained to educate patients on • Interior Truck wells and grade level doors you have POH and Doctors’ Hospi- appropriate use of the ER and refer • Sprinklered and heated building • Short term leases for temporary storage Imagine the possibility of this 75 acre, one and a tal at 20 percent (licensed) occupan- non-urgent patients to the family half mile waterfront property on Lake Superior and cy,” Weiner said. “There is a cost medicine clinic, Kumar said. 313-835-2485 the Chippewa River. Just 30 minutes North of Sault associated with this and patients, “We have seen a 16 percent vol- Ste. Marie, Ontario. This is an exceptional retreat or Best deal in town! development property. Some of Canada’s best fishing payers and businesses pay.” ume increase to our family medi- and abundant wildlife. Totally fenced and gated. Sevillian said Doctors’ Hospital cine clinic in the last year,” Sevil- RETAIL SPACE Can be bought in three individual parcels starting at staffs its facility based on its “aver- lian said. $300,000 or all three parcels can bought for age daily census of 65 patients.” So while the hospital has a $975,000. One parcel has a “new” two bedroom Great Retail Opportunity guest house, complete with large garage. The hospital employs 500 full-time higher mix of Medicaid patients, Miles of roads and trails. Well, electricity and phone. equivalent employees, down from up 2 percentage points to 16 per- in the most sought after Land Contract available to qualified buyers. 900 last year. cent of total admissions, uncom- retail destination in Metro Detroit! By Owner, call Weiner said that since Doctors’ pensated care is 2 percentage - Expand your customer base - 231-537-0017 Hospital has reopened and Henry points down to 17 percent this share this spacious building with INDUSTRIAL PROPERTY Ford West Bloomfield Hospital year, Sevillian said. Michigan’s Premier Rug Retailer Million Dollar View! opened last year, St. Joseph Mercy “Uncompensated care was one AVAILABLE NOW FOR LEASE hasn’t seen any decline in patient of our major problems,” Kumar admissions. said. “We are doing a better job in 4,000 to 100,000 sq. ft. 43235 Twelve Mile, Novi Kumar said St. Joseph Mercy is helping patients receive more ap- Also 10,000 & 25,000 sq. ft. (12 Oaks Mall perimeter) a “hard competitor” that focuses propriate care.” Free Standing Bldgs w/truckwells. 9,000 Sq Ft available on tertiary care services. While Doctors’ Hospital com- 1 Mile from Metro Airport Brokers protected Over the next year, the hospital petes with St. Joseph Mercy Oak- REA CONSTRUCTION wants to expand its oncology and land, which is owned by 44-hospital (734) 946-8730 2 Story home sits high above private, clean, radiation oncology programs, in- Trinity Health in Novi, the hospital Also Heavy Industrial all sports Long Lake in Hartland, MI. This cluding nuclear medicine, Kumar also has an unusual relationship Land Available incredible home offers 4 fireplaces, 4 BR, said. It also plans to enhance its with POH Regional Medical Center. 3.5 baths, gourmet kitchen, w/o basement, urology, cardiology, neurosurgery McLaren purchased POH Re- www.reaconstruction.net Contact Ed at 3 car garage. The entire house is outfitted and orthopedics programs. gional in 2007 and turned around with handmade doors, woodwork and One of the keys to Doctors’ Hos- the osteopathic hospital within a Call Us For Personalized (248) 763-0305 cabinetry. Attention to detail sets this home Service: (313) 446-6068 pital turnaround has been the abil- year, Sevillian said. apart from others. $1,050,000 ity to access McLaren’s cost-cut- “We try not to go after the same FAX: (313) 446-1757 INDUSTRIAL PROPERTY E-MAIL: [email protected] “A true one of.” ting national supply and service patient population” as POH, Sevil- INTERNET: www.hartlandhouse.shutterfly.com www.crainsdetroit.com/section/classifieds contracts. lian said. Troy- 67,000 sq. ft. Mfg. or Warehouse See Call Bob 248-486-8888 “We have saved in excess of half Jay Greene: (313) 446-0325, Three truckwells. Bus duct. Air lines. Crainsdetroit.com/Section/Classifieds Seller Financing Available. Priced right. or 734-812-2737 a million dollars (in supply pur- [email protected] for more classified advertisements Owner/broker 248-705-0835 20090720-NEWS--0022-NAT-CCI-CD_-- 7/17/2009 5:02 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS July 20, 2009 History: Preservationist has formula for rehab plans ■ From Page 3 “It was something to show the market would bear. ciary of the new state historic tax Brian Holdwick, DEGC vice guys in this city that it does work,” He compared those costs — an credit, at the enhanced size,” said president of business development Hosey said. “So I ran the numbers, estimated $60 million to rehab the Hosey, ticking off elements of the and finance, said Hosey has good I thought it worked and I thought Lafayette, $50 million with a de- formula. ideas but that the lending market it was viable.” ferred developer fee — to the “That’s a state historic credit at is still a problem. What he devised was a formula available arsenal of state and fed- $11.5 million which would gener- “He’s mostly trying to leverage he says can work to convert many eral tax credits and tools, includ- ate about $8 million in net funding new market tax credits to bridge of Detroit’s historic buildings — ing a larger state historic tax into the deal … a federal historic these gaps, and hopefully it does, pre-1936, significant architecture, credit made available this year tax credit that I would have on the but the key problem now isn’t the a good story — into residential and a U.S. Department of Housing low side at $12.5 million, a brown- ability to get tax credits, it’s first po- rental units, even in a moribund and Urban Development loan insur- fields state credit that would come sition financing,” Holdwick said. lending climate that’s required ance program designed to help in at $6 million, and a $19.5 million The DEGC routinely uses such ever-more-complicated layers of fi- private industry construct or re- HUD 221(d)(4) loan.” tools, he said. nancing to get deals done. habilitate moderate-income The U.S. Federal Housing Adminis- “They’re all good tools. (Hosey)

NATHAN SKID/CDB Hosey’s calculations figure rental housing. tration has become one of the coun- brings new energy to trying to ag- The Lafayette Building in Detroit has gross size, average size of units “The big assumption in the pro- try’s most viable lenders, he said, gressively market those tools and been a focal point for preservationists. and rents at a rate the current ject is that we would be the benefi- but it can be a long process. trying to solve the gaps, but it’s not something different and new,” Holdwick said. “He’s trying to put a whole bunch of layers of financing to- gether that are needed to do these projects, and he brings a tremen- dous amount of energy, but I haven’t seen any of these projects get over the finish line, either, in recent months. But that doesn’t mean we won’t keep trying.” Developer Fred Beal’s experience with the 91-year-old Broderick Tow- er bears out Hosey’s theorem. “Traditionally, it was difficult to put HUD (products) together with tax credit scenarios like new mar- ket tax credits,” said Beal, president of J.C. Beal Construction Inc., based in ME Detroit and Ann Arbor. “But right now, the developer that’s going to get something done is very likely to be doing it with HUD.” Beal’s Broderick, a 34-story neo- classical/Chicago school/Beaux MICHIGAN’S BANK. Citizens Bankers have been Arts skyscraper in Detroit’s Grand Circus Park, stalled when the cred- guiding Michigan businesses for over 138 years. it market dried up. Beal said he’d started to assem- We’re a Michigan company who understands this ble financing for the project using economy and the challenges your business is facing. the 221(d) program, but then-low appraisal value put a crimp in the works. WE BELIEVE IN OUR STATE. The deposits made by “Today, knowing all the things we know about tax credit and new our clients are reinvested right here in Michigan. market tax credits, that same loan We use these funds to make loans that help local would work,” he said. “But we’d have to start all over to get it.” businesses weather the storm, and give them the The Broderick has received a federal tax credit worth 20 percent support they need to grow. of the cost of the $55 million pro- ject and a $2 million state tax cred- it that can double or triple under To learn more about how Citizens can help the new state guideline — and that your business, visit a Citizens Bank branch means the project may be on track to close this summer. near you, call 1-800-946-2264, or go online to Hosey admits his formula isn’t a magic bullet. Historic tax credits CITIZENSBANKING.COM/BUSINESS aren’t always a sure thing, and city support or social lending could be required to leverage the historic tax equity credit. But, he said, he’d like to see the city’s historic buildings recognized as economic development tools. “I understand (the DEGC) has seen a lot of (deals) fall apart,” Hosey said. “I’ve seen a lot of things fall apart in this market, but I want to get a project done and off the ground. Even with things falling apart, I want to help them see that things are possible, and see what we’ve been able to do in cities around the country. “I think Detroit is a prime spot for things to happen, and even in these hard economic times, we have what need to go forward with this.” Nancy Kaffer: (313) 446-0412, [email protected]. 20090720-NEWS--0023-NAT-CCI-CD_-- 7/17/2009 5:02 PM Page 1

July 20, 2009 CRAIN’S DETROIT BUSINESS Page 23 Arts: Eyeing new patrons Banks give struggling opera theater a break ■ From Page 3 BY SHERRI BEGIN WELCH Aside from the time it took to moves that included three layoffs, of the face value of the six tickets. CRAIN’S DETROIT BUSINESS provide detailed financial informa- schedule reductions to half time Although the target audience is tion to the banks, the negotiations for some staff, salary cuts for the young, sales are not restricted by For one day, After reporting a loss on its tax were “a matter of having banks no remaining 45 employees and can- age. forms the past few years tied to longer represented on our boards cellation of one of its productions. Maureen Kickham, director of declining corporate support, the understand the role we play in the The loss of corporate support marketing services for Detroit Michigan Opera Theatre has secured revitalization of our community, from General Motors Corp., Chrysler donations some breathing room on its bond Chamber Winds the quality of life ... and making L.L.C. and others has added up to and Strings and payments. this a place people would want to about $800,000 this year alone. its partner orga- MOT recently amended its come to,” DiChiera said. MOT ended fiscal 2009 on June 30 nizations, said go further agreements with a four-bank con- The MOT remains in debt for with total revenue of about organizers in- sortium to lower its annual bond $18 million on the opera house $13.5 million and a $2 million loss, tend to sell as The Community Foundation for payments from $2.5 million to and parking structure. DiChiera said. many as 200 Southeast Michigan last week an- $1.3 million for the next 18 months. Its first bond issue for the opera In 2007, MOT reported total rev- packages for the nounced a $1 million online giv- The consortium members are house was in 1999 for $13 million. enue of $13.9 million on its tax program’s inau- ing challenge to help members J.P. Morgan Chase Bank, Comerica About $3.3 million is owed on that form and a loss of $2.4 million. gural season. of the Cultural Alliance of South- Inc., Bank of America and National loan, DiChiera said. In 2004, MOT That followed losses of $2.2 mil- During the eastern Michigan leverage anoth- City Bank, now a part of the PNC Fi- took a second bond for $15 million lion in fiscal 2006 and a loss of Kickham first year, each er nancial Services Group Inc. to build a parking center. About $2.1 million in fiscal 2005. of the six participating arts insti- $2 million. “It took us 11 months, but I $13.3 million is owed on that bond, “Let’s hope by the end of this pe- tutions will sell the discounted Every dollar donated to one of think everybody began to realize bringing the total to $16.6 million riod, this (next) 18 months, the tickets and contribute money to the Cultural Alliance’s 89 mem- losing one of the major culture in- and $1.4 million in penalties. economy will begin to turn around the program’s $42,800 budget. That bers through the Community stitutions in the city would be a MOT hadn’t missed any bond so we can be able to come up with a budget also depends on funding Foundation’s Web site at real negative for this communi- payments, DiChiera said, but in better solution,” he said. the program is seeking from phil- www.cfsem.org after 10 a.m. on ty,” said David DiChiera, found- the face of declining corporate sup- Sherri Begin Welch: (313) 446- anthropic organizations, Kickham Aug. 18 will leverage a matching ing general manager of MOT. port, it was forced to make other 1694, [email protected] said. 50 cents to support their opera- Ross Binnie, the DSO’s vice tions. president of audience develop- Each participating Cultural ment, described programs aimed Alliance member can garner a at young professionals as smart in- maximum of $200,000 in match- vestments for Detroit-area arts in- ing funds from the Community stitutions. Foundation. “I can’t expect younger people, The online arts and cultural with all the things going on in giving challenge will end once their lives, to subscribe, but this is the $1 million matching fund is a way to increase their participa- exhausted, or no later than Sept. tion,” he said. 18. The organizers of the program For more information, visit said each Passport package perfor- www.cfsem.org. mance will include a special event — Sherri Begin Welch geared toward young profession- als. from ticket sales. Maud Lyon, executive director Last season, the MOT saw corpo- of the Cultural Alliance of Southeast- rate donations and sponsorships ern Michigan, said the new Detroit- plummet by 80 percent, said Re- area programs react to changes in bekah Johnson, communications audience preferences. coordinator. Today’s younger arts patrons Ticket sales have declined be- would rather sample a wide vari- cause of the slow economy, and pa- ety of experiences than invest in a trons are more likely to buy indi- single subscription. And events vidual tickets at the box office such as the after-parties satisfy a than buy a full-season subscrip- desire to mix socializing and net- tion. working with entertainment, Lyon The MOT’s opera ticket sales said. dropped during the 2008-2009 sea- The DSO kicked off its 37/11 pro- son, though sales of dance tickets gram after a November concert rose. with a party featuring free food, a Opera subscription sales fell 23 cash bar, and a performance by De- percent and single-ticket sales troit rock band Silverghost. were down 6 percent from the Word spread quickly. 2007-2008 season, while dance sub- The program has grown to in- scription sales rose 3 percent and clude 3,000 members through single-ticket sales climbed 38 per- word of mouth, social media and cent. advertising on the DSO’s Web The DSO’s overall attendance site. The orchestra sells about 100 dropped to 200,000 during the 2008- discount tickets per week, Binnie 2009 season, down from high-water said. marks of 233,000 during the 2005- The Passport program has se- 2006 season and 258,000 during the Buildings Spoiling Your Business? cured advertising through each of 2000-2001 season. Ticket sales for its partner groups, Kickham said. classical performances, the or- Aligning real estate assets to your changing business Lease Renegotiation The MOT has pledged to include chestra’s bread and butter, dipped inserts in its programs, the DIA’s from $4.4 million during the 2006- plans is crucial in this economy. Plante Moran CRESA Tenant Representation Detroit Film Theatre will screen ad- 2007 season to $4.12 million the will create a real estate strategy that adds to your vertisements before film previews, next season, and then to $3.85 mil- Incentives and Wayne State University will send lion during the 2008-2009 season. bottom line. Since we do not represent buildings or e-mails to students, staff and alum- Binnie said the DSO hopes to- landlords, our unbiased approach will focus solely on Sale Leaseback ni on behalf of the university’s day’s discount-ticket buyers will Hilberry Theatre. become tomorrow’s subscribers, your success. (248)223-3500 pmcresa.com Project Feasibility Organizers hope to reach 100,000 but the orchestra is keeping a close people, Kickham said. eye on the age of its patrons these Lease Administration Although discount tickets of- days to make sure those new pa- fered through these programs sell trons materialize. Buyer Representation for a fraction of face value, they The last time the orchestra com- missioned a demographics study fill seats and provide a small infu- Project Management sion of cash. in 2000, the average audience Lyon said that’s important be- member was 54 years old. cause declines in philanthropic The orchestra plans to commis- support, particularly from the sion another study by the time the auto industry, have pressured arts 2009-2010 season starts in Septem- institutions to emphasize revenue ber. 20090720-NEWS--0024-NAT-CCI-CD_-- 7/17/2009 6:02 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS July 20, 2009 Cerion: New Industrialist Hofmeister has history of building by buying supplier BY RYAN BEENE In 1991, Hofmeister founded EWI coTech Inc. and another from ITT L.L.C. after Hofmeister’s resigna- CRAIN’S DETROIT BUSINESS Inc. in suburban Cleveland, which Automotive. tion from the firm in January ■ From Page 1 through a series of acquisitions Hofmeister was also the princi- 2004, just one year after FGH was Cerion L.L.C. and parent compa- grew to post $109 million in 1994, pal of ACI’s parent company, Ken- formed. and assume supply contracts with ny Revstone Industries L.L.C. may and expected to generate $250 mil- tucky-based American Commercial “We decided it was best to end automakers General Motors Co., be unfamiliar names in Detroit, lion in 1995. Holdings Inc. Another ACH divi- this relationship, primarily be- Ford Motor Co., Chrysler Group L.L.C., but the name of the man behind it During that time, the company sion, American Commercial Steel cause the three partners simply Toyota, Honda and BMW, as well as all will likely jog a few memories. acquired then-major prototype Inc., was formed in late 1997 after had irreconcilable differences in large tier-one suppliers such as George Hofmeister is the prin- parts manufacturing Hogan Group acquiring Harper Steel Service Cen- our philosophy and approach to American Axle & Manufacturing Hold- cipal of Revstone, and based on in Fraser for $40 million and a ter Inc. in Warren. At the time, performing buyout transactions ings Inc., Delphi Corp., Continental Au- Crain’s reports from 1994 to 2008, commercial truck cab stamping Crain’s sister publication Auto- and operating our companies,” tomotive Systems Inc., Dana Corp., he has a history of doing deals operation in Orrville, Ohio, from motive News reported the overall Fuhrman said in a press release TRW Automotive Holdings Inc., Borg- similar to the assembling of Ceri- GM/Volvo, adding $85 million in holding company was expected to announcing the restructuring. Warner Inc. and many others, ac- on, almost entirely in metal-com- annual sales to EWI’s books. post revenue of $400 million in Fuhrman declined to comment cording to bankruptcy court docu- ponents manufacturing. But the company was in Chap- 1998. for this story. ments. His most recent venture before ter 11 bankruptcy by 1996. Then in 2003, Hofmeister joined The falling out of Hofmeister, Cerion also gained four plants in the formation of Cerion is Ken- A separate series of deals over- Dan Fuhrman, a former vice pres- Gruits and Fuhrman resulted in a Michigan and one in Mexico when tucky-based MW Universal Inc.,a seen by Hofmeister from 1995 to ident of strategic planning at series of contentious, bitter law- it acquired Inkster-based Hillsdale holding company that operates 10 1997 led to recognition as finalist in then-MascoTech, and William suits in the Oakland County Circuit Automotive from EaglePicher Corp. different companies serving a va- Ernst & Young L.L.P.’s Entrepreneur Gruits, who held a position simi- Court and U.S. District Court in the in December, renaming the com- riety of industries. of the Year awards in 1997 for his lar to Fuhrman at GE Capital L.L.C., Eastern District of Michigan between pany Metavation. Hillsdale posted MW’s Web site says Hofmeister work as chairman and CEO of to form FGH Capital L.L.C., a private Hofmeister on one side, and Gruits revenue of about $100 million in has “over 35 years experience in American Commercial Industries Inc., equity firm in Rochester. and Fuhrman on the other. 2007, according to a press release the management of metals manu- which made stamped metal parts The firm completed a few deals, A few months later, Hofmeister about the deal. facturing companies incorporat- and assemblies for the auto indus- buying Soberay Machine & Equip- appeared again on the Detroit According to a June press re- ing more than 100 individual com- try and was based in Troy. ment Inc. in Akron, Ohio, and buyout scene when he bid for, and lease announcing Cerion’s selec- panies with corporate revenues The company was a patchwork Trans Industries of Indiana Inc. in acquired, auto parts maker AEC tion of Livonia-based P2R Associ- exceeding $3 billion total.” of several acquisitions, including Marion Ind., both with 2002 rev- Holding Corp. out of bankruptcy ates as the company’s public The Web site also lists Cerion the engineering and prototype enue of less than $10 million. with a $12 million bid. relations firm, Cerion was official- CEO Dave Doster as MW’s chief firm Carron & Co. in Inkster, two But FGH disbanded in 2004 and Ryan Beene: (313) 446-0315, ly formed following the Hillsdale executive. stamping businesses from Mas- Fuhrman started Allegent Capital [email protected] acquisition. In the release, Cerion was de- the market the company is enter- have squeezed the sector for much Cerion and Revstone were able growing rapidly through acquisi- scribed as a “privately held Ameri- ing is rough-and-tumble. of the decade, Fitzgerald said. to acquire the desirable assets of tion can be seen with such compa- can manufacturing company fo- “The casting sector has experi- Buying the firms out of bank- Contech, Intermet and PPI without nies as Noble International Ltd. and cused on acquiring and operating enced a large number of failures ruptcy may give the new owners the burden of excessive liabilities Lear Corp. small and medium-sized precision over the last five years,” said Craig an edge their predecessors lacked. and debts. The acquisitions also Both used acquisitions to vault component manufacturing opera- Fitzgerald, a partner and automo- “They’re bargains, and that were a fraction of the likely cost a themselves up in the auto supplier tions to serve automotive and oth- tive supplier consultant at South- means continuity of the operations. few years ago. hierarchies but took on significant er manufacturing industries in the field-based Plante & Moran P.L.L.C. There will be some consolidation, For instance, Contech was sold debt in the process. When revenue U.S.” “That’s been the rule, rather than and certainly these guys can afford by its former parent SPX Corp. in plummeted along with car and Cerion CEO Dave Doster de- the exception.” to close operations and consolidate 2007 to Marathon Automotive Group truck production volumes, the clined to comment for this story High, often volatile prices for and keep the good parts running L.L.C. for $147 million. Cerion companies could not service their through spokesman Gordon Cole, raw materials such as steel, excess and run them at a higher efficien- picked up Contech’s castings divi- debt, went into default and eventu- president of P2R Associates. capacity, low volumes, price pres- cy,” said Neil De Koker, president sion, roughly half the business, for ally filed for bankruptcy. While details about the compa- sures and sourcing from low-cost of the Troy-based Original Equipment $13.5 million. Ryan Beene: (313) 446-0315, ny are sketchy, one thing is clear: countries such as India and China Suppliers Association. The potential fate of a company [email protected] Insurance: Dillon’s health pool plan draws business backing ■ From Page 1 to $900 million annually in re- “We said we’ve got to look at any purchasing,” he said. 5 percent, with office visit co-pays Mike Boulus, executive director duced health benefit costs by and all proposals that could help Marwil said his employee bene- increasing to $15 from $10 and of the Presidents Council, State Uni- combining the state’s 50,000 em- lower the cost of government in fits firm has been working with pharmacy co-pays rising to $20 versities of Michigan, said one con- ployees and 45,000 retirees with Michigan without sacrificing the more than 35 municipalities the from $10 for brand name drugs. A cern about joining a state-run pool 350,000 public employees in other things that matter most to us, in- past several years to lower their $50 co-pay was added for emer- is losing control over benefit plan governmental subdivisions. cluding quality health care for health care costs. gency department use. Employees decisions. Several groups already have ex- public employees,” said Megan “We have saved them 15 percent who select an HMO now pay 5 per- “When you have one system like pressed interest or support for Dil- Brown, the governor’s deputy over their old packages through cent for co-insurance. this (Dillon’s plan), our overall lon’s plan, including Detroit Renais- press secretary. creative administration, not cut- About 23 states have implement- concern is that you lose control of sance Inc., the Detroit Regional Michigan Attorney General ting health benefits,” Marwil said. ed some type of government-run your ability to control costs and Chamber, the Michigan Association of Mike Cox said Dillon’s plan “holds “There are lots of things that can health insurance pool, said Richard your fate,” he said. School Administrators, the Small Busi- great promise.” Earlier this year, be done in the public sector to low- Kaukchi, health program director Michael Batterbee, Small Busi- ness Association of Michigan and Cox recommended the state use a er their bottom line costs without with the National Conference on State ness Association of Michigan direc- Michigan Association of School Boards. similar pooling mechanism to con- going through a government-spon- Legislatures in Denver. tor of government relations, called “We are supportive of the con- tain costs. sored plan and pool.” “Some states only have a few Dillon’s plan a “step in the right di- cept of pooling of health insur- Opposing Dillon’s plan is the Michigan offers two types of thousand people outside of state rection.” ance,” said Doug Rothwell, presi- Michigan Education Association, health plans that union and non- government in the pool, and five or “We’ve been talking about gov- dent of Detroit Renaissance. which represents teachers. union state employees can select. six states have large numbers of ernment reform and government “Michigan public employees have “Why on earth would anyone be- About 70 percent of the state’s participation,” Kaukchi said. restructuring for quite a while to health care benefits that are richer lieve the state could run anything 50,000 employees are represented States with high participation make the budget more stable,” he than the average benefits package efficiently when it can’t even pass by unions in collective bargaining rates include Georgia, North Car- said. offered in the public sector and far a balanced budget?” Doug Pratt, agreements. olina, Wisconsin, Delaware and Sarah Hubbard, vice president richer than that enjoyed by pri- MEA’s director of communica- Employees can choose either a California, he said. of government relations with the vate sector workers.” tions, said in a statement. preferred provider organization “Those states have low levels of Detroit Regional Chamber, said in- A 2008 study by Detroit Renais- Pratt said public school employ- administered through Blue Cross union membership,” Kaukchi vestigating the possibility of form- sance concluded that Michigan ees are already part of health in- Blue Shield of Michigan or several said. “It is harder to incorporate ing a state pool is a step in the employees’ family health coverage surance pools. He said forming a HMO plans, said Matt Fedorchuk, unions into state pools because of right direction. costs are 23 percent higher than larger pool would increase admin- compensation director with the their contracts.” “It saves significant money at the the national average. istrative costs and wipe out addi- Michigan Civil Service Commission. Kaukchi said some states have state level. We’ve been calling for Rothwell also said Dillon’s plan tional savings. Some 65 percent of employees par- reported savings of 2 percent to 5 out-of-the-box reforms, and Speaker could help reduce the need for fur- Bruce Marwil, president of ticipate in the PPO plan. percent by using pooling arrange- Dillon is stepping up to the plate,” ther layoffs in state government and Farmington Hills-based Marwil and Last year, Fedorchuk said the ments. Hubbard said. “We really haven’t may eventually help to cut taxes. Associates, also said he is skeptical state increased co-insurance and “It is hard to put numbers on seen anything this big since the re- A spokesman for Gov. Jennifer that enough local governments or co-payments for both plans in an it,” he said. “Massachusetts said form discussions started.” Granholm said she is open to look- school districts would join the effort to reduce rising health care those cities that didn’t join faced a Jay Greene: (313) 446-0325, ing at various proposals to cut the state-sponsored insurance pool. costs. 13 percent average increase com- [email protected]. Sherri Welch budget deficit. The state is facing a “There is only so much you can For example, PPO co-insurance pared with 8 percent for those that and Nancy Kaffer contributed to $1.8 billion deficit in fiscal 2010. do to reduce costs through volume rates increased to 10 percent from joined the pool.” this story. 20090720-NEWS--0025-NAT-CCI-CD_-- 7/17/2009 5:01 PM Page 1

July 20, 2009 CRAIN’S DETROIT BUSINESS Page 25

Tigers: Ticket sales fall, owner Ilitch still spending www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] from the Fall Classic. which have drawn praise from EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] Season ticket sales dropped to PROMOTING REVENUE baseball Commissioner Bud Selig MANAGING EDITOR Andy Chapelle, (313) 446- 15,000 this season from 27,000 a — but Ilitch also gambled by raising 0402 or [email protected] The Detroit Tigers have a number of promotions designed to generate ASSISTANT MANAGING EDITOR/FOCUS Jennette year ago. revenue both for the team and its nonprofit charity, the Detroit Tigers prices between $2 and $7 on some Smith, (313) 446-1622 or [email protected] “The attendance decline is out of Foundation. tickets for certain “premium” BUSINESS LIVES EDITOR Michelle Darwish, (313) step with the rest of the league. At- games against popular opponents. 446-1621 or [email protected] The team won’t say how much money the promotions make, and none are COPY DESK CHIEF Gary Piatek, (313) 446-0357 tendance is down about 5 percent financial blockbusters. But the theory is that enough small streams can Season ticket-holders also saw a or [email protected] leaguewide, so the Tigers’ 20 per- price increase, although the hike ASSISTANT NEWS EDITOR Jeff Johnston, (313) trickle into a larger cash flow — especially important for a team spending a 446-1608 or [email protected] cent decline is not good,” said J.C. lot in a financially depressed market. was light years away from the DATA EDITOR Anne Marks, (313) 446-0418 or Bradbury, an economist and asso- Here are some of the promotions, each of which includes benefits such as $2,500 the New York Yankees were [email protected] WEB GENERAL MANAGER Alan Baker, (313) 446- ciate professor at Kennesaw State tickets, dinner, photos, clothing, etc. charging for the best seats for a sin- 0416 or [email protected] University near Atlanta. He’s the au- Deliver the ball to the pitcher’s mound ($1,500) gle game. WEB EDITOR Christine Lasek, (313) 446-0473, thor of The Baseball Economist The team also has developed vari- [email protected] Deliver the lineup card to the umpire ($1,500) WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) and operates the baseball site Press box fantasy ($1,500) ous promotions to raise money, 446-0403, [email protected] Sabernomics.com. such as fantasy camps and pack- EDITORIAL SUPPORT Robertta Reiff (313) 446- Participate with the grounds crew ($1,250) 0419, YahNica Crawford, (313) 446-0329 The Tigers said they were braced ages that allow fans to take the ball Watch batting practice ($1,000) NEWSROOM (313) 446-0329, FAX (313) 446- for fewer fans this year, and noted to the mound or watch batting prac- 1687 TIP LINE (313) 446-6766 that 2008’s record-setting atten- Parent-child catch in the outfield ($750) tice, deals ranging from a few hun- REPORTERS dance was a bit of an anomaly fu- Scoreboard message ($55) dred dollars to several thousand. Ryan Beene: Covers auto suppliers, steel, higher eled by high-profile off-season play- Three-day fantasy camp weekend ($1,350) (See box at left.) education. (313) 446-0315 or [email protected] Daniel Duggan: Covers retail, real estate and er signings. They probably rank Fantasy batting practice under the lights ($249) The looming question is: If the hospitality. (313) 446-0414 or where they should out of Major 8-day fantasy camp in Florida ($3,450) team is losing money, what is Il- [email protected] Jay Greene: Covers health care, insurance and the League Baseball’s 30 teams: 11th itch’s threshold for tolerating losses environment. (313) 446-0325 or overall, fourth in the American TIGERS PAYROLL before he orders a drawdown? [email protected]. League and first in their division. “There are some questions as to Chad Halcom: Covers law, non-automotive Here’s how Detroit’s annual player payroll manufacturing, defense contracting and Oakland The team is also quick to point whether things are solid and and Macomb counties. (313) 446-6796 or out that it’s on pace for its third or has changed over several whether the Tigers are financially [email protected]. seasons: Tom Henderson: Covers banking, finance, fourth best season attendance sound in the long haul,” said Maury technology and biotechnology. (313) 446-0337 or ever, ahead of the 1968 and 1984 $49.1 $46.8 $69 $82.6 $95 $137.6 $115 Brown, president of Portland, Ore.- [email protected]. World Series years. based Business of Sports Network, Nancy Kaffer: Covers small business, the city of million million million million million million million Detroit, Wayne County government. (313) 446- The attendance decline, which which includes a Web site devoted 0412 or [email protected]. has slowed as the team continues to 2003 2004 2005 2006 2007 2008 2009 to the economics of baseball. “If he’s Bill Shea: Covers media, advertising and Source: USA Today salary database marketing, entertainment, the business of sports, win and local weather improves, infusing it with his own personal and transportation. (313) 446-1626 or means fewer dollars are coming in income, that’s not sustainable.” [email protected]. for a team with baseball’s fifth fountain as the company lurched gle pot, and the money is distrib- But don’t look for a fire sale, Zim- Nathan Skid: Multimedia reporter. Also covers the toward bankruptcy in the spring, uted evenly among all the teams. food industry. (313) 446-1654, [email protected]. most-expensive player payroll — balist said. Instead, the Tigers Sherri Begin Welch: Covers nonprofits and something that may not matter if idling a prime advertising spot re- That means some teams lose would likely pursue a “less aggres- services. (313) 446-1694 or [email protected] the owner is willing to dig deeper to portedly worth up to $2 million money on the deal and others take sive” payroll strategy rather than LANSING BUREAU fund trades for premium players. over three seasons. in tens of millions. Last year, dumping talent — unless they keep Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- The trade deadline is July 31. Ilitch kept the GM logo on the teams paid $400 million into the winning, in which case Ilitch likely 5355, FAX (517) 371-2492, [email protected]. or fountain and added Chrysler L.L.C. pot, but baseball won’t say which would keep subsidizing the team 115 W. Allegan, Suite 220, Lansing 48933. Losing money? and Ford Motor Co. logos, all for teams received a net gain or loss from his own pocket. ADVERTISING free, as a show of support for the when the money was distributed. The Tigers won’t discuss their Continuing to win should help ADVERTISING DIRECTOR Marla Downs, (313) automakers. Baseball also contributes a por- the team financially, as could 446-6032 or [email protected] finances, so it’s unclear if the team “His standing in the community tion of its revenue from its nation- SALES INQUIRIES: (313) 446-6052; FAX (313) is making money or if owner Mike adding a player through trades, 393-0997 is important to him,” Zimbalist al television contracts, and that said Bradbury, The Baseball Econo- ADVERTISING SALES Jeff Anderson, Matthew J. Ilitch’s other business enterprises said. “It’s kind of like the Japanese money is allocated to teams based Langan, Lori Tournay Liggett, Tamara Rokowski, — such as his Little Caesars pizza mist author. Kimberly Ronan, Dale Smolinski model to use your sports team to on revenue. “Adding a good player to an al- CLASSIFIED SALES (313)-446-0351 chain — are subsidizing the $115 promote your other business.” Some, such as Bill Ferris, who MARKETING MANAGER Irma Clark million player payroll. ready-good team could be the Ilitch — Forbe’s 301st richest has run DetroitTigersWeblog.com smarter financial move than cut- EVENTS MANAGER Nicole LaPointe And that doesn’t include the American at a net worth of $1.3 bil- since 2001, think Ilitch plans to MARKETING ARTIST Sylvia Kolaski front office and other personnel, ting payroll and incurring losses. If SALES SUPPORT Suzanne Janik, YahNica lion and himself a former minor- maintain aggressive spending for the Tigers make it to the post-sea- Crawford including manager Jim Leyland’s CIRCULATION Candice Yopp, Manager. league ballplayer — bought the the foreseeable future. son then they will receive a portion $4 million annual contract or the team in 1992 for $82 million from “The thing I find encouraging, SALES, MARKETING INTERN Kim Winkler $2 million that team President, of post-season gate revenue (40 per- PRODUCTION MANAGER Wendy Kobylarz Michigan’s other pizza baron, in their draft in June, they went af- cent for mandatory games and 100 PRODUCTION SUPERVISOR Larry Williams, CEO and General Manager Dave Domino’s founder Tom Monaghan. ter guys that will be hard to sign (313) 446-0301 Dombrowski is paid yearly. percent for ‘if necessary’ games) Forbes estimates the franchise val- and require bonuses,” he said. “It that could add to the team’s cof- CUSTOMER SERVICE Economic news Web site ue today at $371 million. makes me think the (financial) sit- Forbes.com, which tracks pro fers.” MAIN NUMBER: Call (888) 909-9111 or write The Tigers draw their revenue uation isn’t dire.” But trades have a problematic [email protected] sports finances, reported that the SUBSCRIPTIONS $59 one year, $98 two years. from several sources: ticket sales, The Tigers look extremely stable side because of the credit market Out of state, $79 one year, $138 for two years. Tigers had minus $26.3 million in concessions, merchandise, corpo- compared to the Texas Rangers. Outside U.S.A., add $48 per year to out-of-state these days, and can reveal some- rate for surface mail. Call (313) 446-0450 or operating income last season on rate sponsorships, local broadcast Team owners Tom Hicks’ Hicks (888) 909-9111. revenue of $186 million. Gate re- thing about the team’s finances. deals and revenue sharing. Sports Group recently defaulted on “Even if the owner sees a busi- SINGLE COPIES: (888) 909-9111. ceipts were $75 million. REPRINTS: (800) 290-5460, ext. 125; (717) 399- The Tigers also get $2.2 million more than $500 million in loans, and ness opportunity that will pay off 1900, ext. 125; or ashley.zander@theygsgroup “With his payroll and attendance .com. annually until 2028 as part of the baseball has made $15 million avail- down the road (like acquiring an and loss of corporate sponsorships, TO FIND A DATE A STORY WAS PUBLISHED: naming-rights deal for Comerica able to ensure the team maintains (313) 446-0367 or e-mail [email protected]. I think he’s losing money,” said An- All-Star veteran) unless he has cash Park. payroll and day-to-day operations. on hand, he may not be able to make drew Zimbalist, professor of eco- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY nomics at Smith College in Massa- the deal,” Bradbury said. CRAIN COMMUNICATIONS INC. Baseball socialism Long haul CHAIRMAN Keith E. Crain chusetts and author of several “If (Ilitch) is talking about pursu- ing such a player, then he probably PRESIDENT Rance Crain books on the business of baseball. Baseball since 1997 has had a The Tigers say they have been SECRETARY Merrilee Crain The biggest example of corpo- revenue-sharing agreement as putting an emphasis on making feels that his cash situation is good TREASURER Mary Kay Crain part of its overall labor agreement tickets and games attractive to cost- enough to make such a deal.” Executive Vice President/Operations rate cutbacks came when General William A. Morrow Motors Corp. ended its sponsorship that requires all teams to pay 31 conscious fans — there are deals for Bill Shea: (313) 446-1626, Group Vice President/Technology, percent of local revenue into a sin- $5 tickets, $5 parking and $5 meals, [email protected] Manufacturing, Circulation of the Comerica Park center-field Robert C. Adams Vice President/Production & Manufacturing Dave Kamis Corporate Director/Circulation Patrick Sheposh G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: BANKRUPTCIES 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 The following businesses filed for ties not available. dba Optimal Care Inc. and Optimal ties not available. Cable address: TWX 248-221-5122 AUTNEW DET Chapter 7 or 11 protection in U.S. Dialysis Care, Optimal Care Dialysis First of America Auto Inc., 7524 Maple Victory Outreach – Detroit, P.O. Box CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Bankruptcy Court in Detroit July 10- Center MD, dba Medical Care Optimal, is published weekly, except for the first week of St., Dearborn, voluntary Chapter 7. 09334, Detroit, voluntary Chapter 11. 16. Under Chapter 11, a company files 18600 James Couzens, Detroit, volun- July, the fifth week of August, the fourth week of Assets and liabilities not available. Assets and liabilities not available. November, the third week of December and a for reorganization. Chapter 7 involves tary Chapter 7. Assets and liabilities special issue the fourth week of August by Crain total liquidation. Grayon Industrial Inc., 39255 Country not available. Waterfront Hotel Ventures L.L.C., Communications Inc. at 1155 Gratiot Ave., Detroit Club Drive, Farmington Hills, volun- MI 48207-2732. Periodicals postage paid at Detroit, Aladdin Jewelers Inc., dba Mirage Jew- Physical Therapy and Fitness L.L.C., 40800 Woodward Ave., Bloomfield MI and additional mailing offices. POSTMASTER: tary Chapter 7. Assets: $84,221; liabili- Send address changes to CRAIN’S DETROIT elers, 9701 Joseph Campau, Hamtram- 30200 Schoenherr Road, Warren, vol- Hills, voluntary Chapter 11. Assets: ties: $1,502,371. BUSINESS, Circulation Department, P.O. Box ck, voluntary Chapter 11. Assets: untary Chapter 11. Assets and liabili- $250,000; liabilities: $5,269,165. 07925, Detroit, MI 48207-9732. GST # M Mullins Inc., 7505 Canton Center 136760444. Printed in U.S.A. $219,300; liabilities: $270,030. ties not available. William and Michelle Mullins L.L.C., Entire contents copyright 2009 by Crain Beginners Inn Day Care Center Inc., Road, Canton, voluntary Chapter 11. Renaissance Physical Therapy L.L.C., 7515 Canton Center Road, Canton, vol- Communications Inc. All rights reserved. Assets and liabilities not available. Reproduction or use of editorial content in any 7505 Canton Center Road, Canton, vol- 30020 Schoenherr Road, Warren, vol- untary Chapter 11. Assets and liabili- manner without permission is strictly prohibited. untary Chapter 11. Assets and liabili- Optimal Care Dialysis Inc., formerly untary Chapter 11. Assets and liabili- ties not available. 20090720-NEWS--0026-NAT-CCI-CD_-- 7/17/2009 6:17 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS July 20, 2009 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JULY 11-17 related to his car getting a parking boot in a fire lane at President Barack Oba- ported. a grocery store. Reports: GM ma, speaking at Macomb Ann Arbor-based Aas- Fundraiser Linden, who owns Aspen’s Community College on Tues- trom Biosciences Inc. (Nas- Crystal Palace dinner the- to open battery day, unveiled a $12 billion daq: ASTM) announced ater building, was arrested plan to help community Tuesday that it has been July 4. plant near Detroit colleges. granted another extension “Police claim Nelson tried by the Nasdaq Stock Ex- brings Bing change, until at least Oct. 1, to flee the scene of the alter- eneral Motors Co. will to comply with the require- cation when they arrived,” build battery packs ON THE MOVE ment that member stocks the Aspen Daily News report- G for the Chevrolet Volt Edward Cardenas, for- trade for at least $1 a share ed July 10. “They arrested electric car at a facility in mer communications direc- or face delisting. cha-ching him for failing to obey a law- Brownstown Township tor for U.S. Rep. Candice Walbridge Aldinger Co., ful order and resisting arrest that is expected to employ Miller, R-Harrison Town- a Detroit-based construc- wo hours of mingling, marks by Bing and newly or interfering with an inves- at least 100 people to assem- ship, has been named De- tion services company, has $250,000 in campaign appointed Detroit Police De- tigation.” Once Nelson was ble the packs from Korean- troit Mayor Dave Bing’s received Silver LEED certi- T contributions. partment Chief Warren Evans. brought to the county jail, made batteries by a sub- press sec- fication for its headquar- That’s the estimated take Bing let attendees know his arresting officers decid- sidiary of LG Chem of South retary. ters office at 777 Woodward from a fundraiser held at De- “their support is part of ed he should be charged only Korea. Bruce Ave. troit’s The Roostertail for De- moving Detroit forward,” with disorderly conduct, the A source told The Associ- Hill has Oakland County Exec- troit Mayor Dave Bing, said Russell said. Daily News said. ated Press that GM will in- been ap- utive L. Brooks Patterson is Cliff Russell, a representative “This was a parking issue. vest $43 million in an exist- pointed seeking pay cuts totaling 5 of the Bing campaign. I wish I had had more pa- ing building. The Volt will president percent over two years The former Detroit Piston- Same sector, new view tience,” Nelson told Crain’s be built at GM’s Detroit- and CEO from county employees to turned-businessman, elect- When Jim Croce left De- on Friday. “It was non-con- Hamtramck factory. at Health- help balance the county’s ed in a May special election, troit-based NextEnergy last frontational. I think this is a Plus of budget for 2010-2012, The will face five opponents in July after nearly five years non-issue.” Hill Michigan Detroit News reported. an Aug. 4 primary. as president and CEO, he Richard Nedlin, deputy dis- Federal Warrior-Dickinson after six months as interim The Michigan Economic The event last Monday, said he was eager to get back trict attorney for Colorado’s president and CEO. case tossed; Artzes settle Development Corp. has ap- chaired by Jim Thrower, a to the private sector, as pres- Pitkin County, said the case proached the Obama ad- former Detroit Lion who’s ident and COO of Wixom- hasn’t reached him yet, but U.S. District Court Judge OTHER NEWS ministration for as much as now the owner of several based Lipten Co., an energy- the penalty for disorderly Gerald Rosen tossed out the The Michigan Depart- $2 billion in federal aid to McDonald’s restaurants in services firm. conduct convictions typical- jurisdiction arguments of ment of Transportation said it help auto suppliers and oth- Detroit, drew about 500 at- NextEnergy is a nonprof- ly carries a short probation Detroit-based Dickinson awarded an emergency er manufacturers that are tendees, Russell said. it incubator and business term and public service Wright P.L.L.C. and Warren $84,000 contract to Shelby struggling in the tight cred- The event’s list of co- accelerator for alternative- rather than jail time. sports equipment maker Township-based Posen Con- it market, the Free Press re- chairs was dotted with energy. Before taking the Nelson, CEO of Celebration Warrior Sports Inc. in a patent struction Inc. to remove the ported. names of prominent Detroit top job there, Croce had Centers of America, is among malpractice lawsuit — charred remains of the Nine Farmington Hills- businesspeople: John Adamo been vice president of busi- the investors in a $75 million along with the case itself. Mile Road overpass and the based Chrysler Financial, the Jr., CEO of Adamo Demolition ness development of DTE En- plan to build a 200,000- Warrior had sought dam- debris from I-75 after a fuel former financing arm of au- Co.; DTE Energy Co. CEO An- ergy Co.’s energy technology square-foot movie studio at ages of $33 million against tanker truck explosion. tomaker Chrysler L.L.C., said thony Earley Jr.; Bing Group group. General Motors Co.’s Pontiac Dickinson and member at- Today’s launch of Tuesday that it has repaid CEO Kirk Lewis; Blue Cross The lure of the nonprofit Centerpoint complex. torneys John A. Artz and John AnnArbor.com, the online in full its $1.5 billion in gov- Blue Shield of Michigan CEO sector apparently proved ir- S. Artz for a “scooped news and social network- ernment loans, the AP re- Daniel Loepp; developer Em- resistible, though. This lacrosse head” patent that ing site replacing the clos- ported. met Moten; PVS Chemicals month, Croce joined the BITS & PIECES the Artzes allegedly al- ing Ann Arbor News, has lowed to lapse. Detroit-based Caraco Inc. President James B. Nevada Institute for Renewable John E. Enkemann Jr., se- been stalled by technical Court records state the Pharmaceutical Laboratories Nicholson; and a slew of at- Energy Commercialization, an- nior vice president at Albert problems until July 24. Artzes reached a tentative Ltd. and its parent compa- torneys from firms includ- other nonprofit energy-tech- Kahn Associates Inc., was ap- Southfield-based auto settlement separately with ny, Sun Pharmaceutical In- ing Butzel Long P.C., Honig- nology accelerator, as its pointed chairman of the Ar- supplier Lear Corp. filed a Warrior, on June 15. dustries Ltd., likely will wait man Miller Schwartz and Cohn president and CEO. chitec- motion in U.S. Bankruptcy until at least 2012 to launch L.L.P., Clark Hill P.L.C. and If Croce is back in the tural Court Thursday seeking a generic version of depres- Miller, Canfield, Paddock and same sector, at least it’s with Registra- permission to create a spe- Sam Riddle indicted in sion and anxiety drug Stone P.L.C. — including a nice view. His new outfit is tion Ex- cial incentive plan for 29 Lexapro — but it could Thrower’s daughter, Joni based in Incline Village, amina- public corruption probes executives “instrumental have several other prod- Thrower, an associate at near Lake Tahoe. tion to the success” of Lear’s re- A federal grand jury has ucts on the market much Miller Canfield who is serv- Commit- structuring efforts. The indicted political consul- sooner under an agreement ing on Bing’s pro bono turn- tee for company would pay 29 top Car booted, CEO busted tant Sam Riddle in an inves- to resolve litigation over around team. the Na- employees bonuses total- tigation into public corrup- Lexapro. Guests were offered two Linden Nelson, local entre- tional ing $20.6 million or more if tion in Detroit and An executive order ticket options — a strolling preneur turned real estate Council of Enkemann the company meets certain Southfield. signed last week by Gov. dinner for $250 a head, or developer, got himself in Architectural Registration benchmarks. Riddle was arraigned Jennifer Granholm eliminates the strolling dinner plus en- some hot water over the July Boards. Enkemann will over- A Delaware bankrupt- Thursday and Magistrate the Michigan Department of trée to an earlier photo re- 4 weekend when he was ar- see the writing of the ARE cy judge Thursday denied a Judge Mona Majzoub en- History, Arts and Libraries — ception for $1,000. rested by police in Aspen, exam, required to become a request by Van Buren tered not-guilty pleas for and about $2 million in as- The evening included re- Colo., for an alleged blow-up licensed architect. him. Riddle is a former aide Township-based auto parts supplier Visteon Corp. to ap- sociated costs from the 2010 to Monica Conyers, who budget. pleaded guilty to taking prove severance and reten- tion plans for its nonunion Farmington Hills-based bribes while serving on the Energy Conversion Devices Inc. Detroit City Council. employees, the AP reported. World Alliance Financial (Nasdaq: Ener) announced He also is charged in a Corp. will close its Michi- Monday an agreement to sell separate corruption case in gan headquarters in Troy Orion Township-based BEST FROM THE BLOGS Southfield. Former state effective Sept. 5 and lay off Cobasys L.L.C. to a new South READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Rep. Mary Waters is charged 62 employees, according to Korean company, SB with conspiracy to commit a notice filed with the state LiMotive Co. Ltd. Neither side scores No time like the present bribery in the Southfield Department of Energy, Labor case. A not-guilty plea was and Economic Growth. A patent malpractice Imagine the impact entered for her. Southfield Henry Ford Hospital, the OBITUARIES case“ over a scooped philanthropists“ could Councilman William Latti- flagship hospital of Detroit- Alex Allen, a retired lacrosse head was have if they funded their more also faces charges. based Henry Ford Health Sys- 36th District Court judge, tossed out of court. family foundations now tem, unveiled the final re- died of complications from rather than waiting to ” leave the full amount in BRIGHT SPOTS sults of a $32 million lung cancer July 9. He was their estates. expansion Wednesday. 74. Three Michigan pro- Former General Motors Bill Reedy, who had ” jects were awarded nearly Corp. Chairman and CEO owned two Detroit bars $2 million in grants last Rick Wagoner, 56, will retire and was an assistant to for- week from the U.S. Depart- Aug. 1 with a pension and mer Detroit City Council- Reporter Chad Halcom’s blog on the legal business Reporter Sherri Begin Welch’s blog ment of Energy to support benefits package the au- man Jack Kelley, died of can be found at www.crainsdetroit.com/halcom about Southeast Michigan nonprofits can be found wind energy projects, the tomaker valued at more pancreatic cancer July 12. at www.crainsdetroit.com/welch AP reported. than $10 million, the AP re- He was 72. DBpageAD.qxd 7/8/2009 9:17 AM Page 1

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