20100920-NEWS--0001-NAT-CCI-CD_-- 9/17/20106:53PMPage1 ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved will gotowardtheMichigan Corp. gan EconomicDevelopment capital accessforthe said PaulBrown,managerof least $78milliontoMichigan, in obtainingcredit. culty smallbusinesseshave loans inMichigan. arm towardsmall-business will provideashotinthe lending billlastweekthat a $30billionsmall-business employers, Page14 Largest OaklandCounty Page 12 could dryupbizlending, Banks warnaccountingrules change orendMBT, Page4 Candidates saythey’ll income forfirsthalfofyear HMOs posthighernet Chrysler HQbuilding buys $225millionloanon What abargain:$60million to stateforsmall-bizloans Bill providesatleast$78M

NEWSPAPER www.crainsdetroit.com Vol.26,No.39 Crain’s Crain’s Second StageExtra This JustIn Inside Page 3 A portionofthefunding It isexpectedtoprovideat The billaddressesthediffi- The U.S.Senateapproved See ThisJustIn,Page2 List Michi- to brokerasale. finance andadvisoryteam,whichwashired around LaborDayto an undeterminednumberofotherbidders bids fortheteamweresubmittedbyGoresand will talkmuchaboutit. tion forthenewvirtualtourit attracting localandnationalatten- Detroit, buthecouldbethisfall. Ford House’s virtualtourgetsrealnational attention Private-equity baronhasMichiganties you’re notgoingtohavetherightstructurebegoodcustomers.” “I thinkitneedstobeafairdeal,”saidTomGoresofhisbidbuytheDetroitPistons.“Ifyouoverpay, .com/shea crainsdetroit Tom Gores, Blog: W Current teamownerKarenDavidsonhas A sourcefamiliarwiththesituationsaid The Tom Goresisn’tahouseholdnameinmetro BEXTRA EB shot for Delphi Pistons bidder CRAIN’S DETROITBUSINESS More on Edsel &EleanorFordHouse B Y S CRAIN’S DETROITBUSINESS HERRI B ther henoranyoneinvolved Detroit Pistons coming thenextownerof to havetheinsidetrackonbe- last yearandnowisrumored Holdings LLP based autosupplier Y He nearlyboughtTroy- B W ILL ELCH Citi PrivateBank S HEA for $3.6billion , althoughnei- SEPTEMBER is photographs, oralhistories,expert for publicviewing. the firsttimeone-of-a-kinditems museum —makesavailable for on aniPodTouchloanedfrom the phones orforviewingduringtours to iPhones,iPadsandsmart tent thatisavailablefordownload the estatewith60minutesofcon- which includesavirtualtourof tant virtualvisitors. put theestatewithinreachofdis- tours forgroundsvisitorsandto launched thissummertoenhance ’s sports Those includefamilyletters, The softwareapplication— Delphi 1968 andisaU.S.citizen. Grosse Ile. revenue of$11billionin2009. Platinum EquityLLC Ⅲ Ⅲ T Ⅲ Ⅲ Ⅲ Ⅲ his stylewouldbehands-on,butnottothe ed soon. son startsnextmonth,soadecisionisexpect- said shewantsasaledonebythetimesea- OM Born: Age: Residence: Company: MichiganStateUniversity College: Family: If hebecomesthePistons’owner,Goressaid 20 –26,2010 G ORES 46 Nazareth, Israel.CametoMichiganin Wife, Holly.Threechildren. Beverly Hills,Calif.-based Los Angeles;hasahousein , launchedin1995.Annual COURTESY OFPLATINUMEQUITYLLC EDSEL &ELEANORFORD HOUSE See TomGores,Page25 tor Co the sonof movies shotbyEdselFord, tate’s landscapingandhome interviews ontopicslikethees- . founder COURTESY OF Ford Mo- ing are cryingfoul.Theysaytheinsurers,includ- tor ofinsuranceservices. BeneSys Selinsky, directorofsalesandmarketingwith longer hasanyskininthegame,”saidSteve point wheretheemployeeno (health savingsaccount)toa funding anemployee’s then coverthedeductibleby high-deductible routeand bility forhealthcarecosts. ees bearlittleornoresponsi- is goingupbecauseemploy- usage ofhealthcareservices to coverthedeductibles. ing gapinsuranceorgivingworkerssubsidies health plansandthen“wrap”thebybuy- employers whoofferhigh-deductibleemployee are beginningtochargehigherpremiums strategy. Someemployersspend$4,800ayearor said employersareupsetwiththenewpricing $1,000 peremployee. containment optionthatcansavethem$500to Michigan use cost-cutting plan for employerswho Insurers raise rates ‘wrapping’ over Wrangling But employersandtheirinsuranceagents “Often, employersgothe The reason?Insurerssay Some healthinsurersinSoutheastMichigan Mike Krause,presidentof Priority Health , aTroy-basedthird-partyadministra- , aretakingawayanimportantcost- CRAIN’S DETROITBUSINESS B make anin-personsitevisitarich- dent ofthecarcompany. Henry Fordandlongtimepresi- Y The applicationisdesignedto J and AY er experience.Forexample, ago. since itslaunchsixweeks been downloaded800times film clipsandmore.It’s Ford familyletters,photos, lets tourvisitorscallup of aninteractiveappthat part Eleanor Fordestate— building attheEdsel& A smartphonedisplaysa G Blue CrossShieldof $2 acopy;$59year See FordHouse,Page22 REENE See Wrapping,Page21 Selinsky Krause Benefits ® , 20100920-NEWS--0002-NAT-CCI-CD_-- 9/17/2010 6:16 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 20, 2010

play a 1080p image or receive one Gaynor expects to double the rev- school will be revealed during THIS JUST IN The way it was: 2003 via an over-the-air broadcast an- enue of the Texas locations with- the Thursday press conference. tenna. in three years. — Dustin Walsh ■ From Page 1 Throughout our 25th-anniversary A 1080p television can display — Daniel Duggan year, Crain’s will use this space a signal with a minimum of 1080 Supplier Diversification Fund, to look at interesting items from pixels of vertical resolution. New office hires veteran broker which provides gap financing to past issues. Attorneys at Detroit-based Skillman-led coalition to unveil Chicago-based real estate com- suppliers seeking capital loans. Miller, Canfield, Paddock and Stone plans for new high school pany Advocate Commercial Real Es- The fund began last year with PLC, which represents both ABC tate Advisors LLC is expanding in It is obvi- The Detroit Edison Public School $26.3 million in funding, and Sony, sought to have the lat- the area with the hiring of veter- “ Academy will unveil its plan on $17.3 million of which already est version of the lawsuit dis- an commercial real estate broker ously not good Thursday to build a college prep has been doled out to companies missed in separate motions filed Sam Munaco and the opening of high school near Eastern Mar- like Chesterfield Township- news, but it is in June. But Borman last week an office in Southfield. ket. based Motor City Stamping Inc., denied that request on all Munaco has been named presi- The DEPSA Early College of which needed $2.4 million in gap manageable. grounds, and scheduled a trial dent for the Detroit-area office of Excellence charter school will be financing to qualify for a $5 mil- date next August. the firm, leaving his 20-year posi- ” the first new school funded by lion loan from Huntington Bank. Paula Angelo, Delphi Corp. Plaintiffs David Date of Michi- tion as a principal at Southfield- the Michigan Future Schools Initia- The bill requires the funding From an April 28, 2003, article gan and Elliott Handler of New based Signature Associates. He tive, a coalition led by the Skill- be leveraged at a 10-to-1 ratio, so about Standard & Poor’s reviewing York allege the televisions they said the move is an opportunity man Foundation. $78 million would support Delphi and three other auto parts- purchased cannot receive 1080p to fill the niche of firms that rep- The new school’s curriculum $780 million in loans throughout makers for a possible debt rating signals through any input source resent only tenants, rather than will serve ninth- through 12th- the state. cut over the companies’ unfunded except by an over-the-air anten- also doing leasing assignments graders, and will be designed The bill is expected to pass the pension and retiree medical na. for landlords. liabilities. Delphi shed many of with a heavy focus on science U.S. House this week, Brown The lawsuit alleges violations Advocate has been working on those obligations when it emerged and math. said. of consumer protection and war- deals in the Detroit market for from Chapter 11 bankruptcy in The building will feature — Dustin Walsh October 2009. ranty laws. seven years but has not had a lo- — Chad Halcom “green” engineering thanks to cal office, said CEO Craig Braham, the help of the Engineering Society representing tenants such as De- that their (the companies’) inter- Judge refuses to dismiss case of Detroit, Ralph Bland, DEPSA’s troit-based Clark Hill PLC and De- pretation of the phrase ‘1080p’ TNG buys Texas’ Salon Source superintendent said in a press re- troit-based Kitch Drutchas Wagner against ABC Warehouse, Sony carries the day” in dismissing a Farmington Hills-based beauty lease. It will also be part of the Valitutti & Sherbrook P.C. It is the lawsuit that alleges the compa- supply distributor TNG Worldwide Pontiac-based ABC Warehouse third phase of the Detroit De- company’s first office outside nies falsely overbilled the capa- has acquired a Texas-based beau- Inc. and San Diego, Calif.-based quindre Cut Greenway project. Chicago. bility of at least three high-defin- ty distributor for $6 million. Sony Electronics Inc. will need Further details on the new — Daniel Duggan more than their own definitions ition TV models in 2005-06. The acquisition of Salon Source of a type of high-definition televi- At issue in the 2007 lawsuit is brings store locations in Austin, sion to dismiss a prospective whether a television billed as Dallas, Ft. Worth and Houston. CORRECTIONS class-action lawsuit, a Detroit 1080 pixels has the ability to re- In addition, TNG has leased a Ⅲ A story published on Page 1 of the Sept. 13 edition misspelled the federal judge has ruled. ceive a 1080p signal through all of 30,000-square-foot distribution name of Eran Bashan, CEO of Ann Arbor-based Hygieia Inc. U.S. District Judge Paul Borman its input sources, such as from a center in the Dallas suburb of Ⅲ A Business Diary item published on Page 18 of the Sept. 13 edition found last week he could not high-definition DVD or Blu-Ray Coppell. incorrectly said that Fry Inc. is in Rochester Hills. The company is “conclude, as a matter of law, player, versus the ability to dis- TNG President and CEO Larry based in Ann Arbor. 20100920-NEWS--0003-NAT-CCI-CD_-- 9/17/2010 6:41 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 3 Investors buy loan for Chrysler HQ Meetings and Conventions $60M paid for $225M loan; local buyers in group

BY DANIEL DUGGAN sidiary of investment manage- leased by its New York-based pub- CRAIN’S DETROIT BUSINESS ment firm Och-Ziff Capital Manage- lic relations firm Abernathy MacGre- ment Group, according to Oakland gor Group. A group of local and national in- County property records. The deal was structured with 20 vestors is expecting to cash in on a The records indicate the loan percent of the funds coming from loan deal involving the Chrysler LLC amount was $225 million and held local investors, according to headquarters building in Auburn by Citigroup Global Markets Realty sources with knowledge of the Hills. Corp. until March, when it was deal. The local group was led by Details coming to light about the transferred to CHQ LLC, an entity David Friedman, president and quietly brokered deal indicate a incorporated in Delaware. The ar- CEO of Farmington Hills-based $225 million loan — which uses the ticles of incorporation for CHQ Friedman Real Estate Group. Small corporate meetings 4.4 million-square-foot building as were signed by Joel Frank, who is Amy Schiffman, Friedman di- collateral — was purchased for also CFO of Och-Ziff. rector of marketing and adminis- lag rise in hotel occupancy, $60 million, according to sources OZ Management and Och-Ziff do tration, declined to comment on Chrysler LLC owns its Auburn Hills Page 9 with knowledge of the deal. not comment on any investments the deal. headquarters, but a loan with the The loan buy was led by OZ Man- they may or may not be involved building as collateral has changed agement LP, a New York-based sub- with, according to a statement re- See Chrysler HQ, Page 25 hands. Company index These organizations appear in this week’s Crain’s Detroit Business: Albert Kahn Associates ...... 9 HMOs report Altair Engineering ...... 15 BeneSys ...... 1 Blue Care Network ...... 23 Blue Cross Blue Shield of Michigan ...... 1 income up in Boji Group ...... 3 CB Richard Ellis ...... 24 Chelten Benefits Group ...... 21 Citigroup Global Markets Realty ...... 3 1st half of ’10 Deloitte ...... 13 Detroit Institute of Arts ...... 22 Detroit Metro Convention & Visitors Bureau ...... 11 Enrollment rise Detroit Pistons ...... 1 Detroit Regional Convention Facility Authority . . . . . 9 part of the picture Detroit Science Center ...... 22 Doubletree Guest Suites Fort Shelby/Detroit . . . . . 10 Edsel & Eleanor Ford House ...... 1 BY JAY GREENE Fidelity Bank ...... 12 CRAIN’S DETROIT BUSINESS Friedman Real Estate Group ...... 3 Southeast Michigan’s 15 health Great Lakes Health Plan ...... 23 maintenance organizations posted GAV & Assoc...... 24 11.2 percent higher net income for Health Alliance Plan ...... 21 the first six months of 2010 com- Health Plan of Michigan ...... 3 pared with the same period in 2009. Hennessy Capital ...... 13 The boost in net income was HireGenics ...... 24 mostly stimulated by increases in Hotel Investment Services ...... 9 enrollment and revenue, accord- Ilumisys ...... 15 Inkster Police Department ...... 3 ing to the state Office of Financial ANDREW POTTER and Insurance Regulation. The Michigan Department of Human Services office in Inkster became the starting point for a four-building development Jones Lang LaSalle ...... 24 Nine HMO plans posted higher by Ron Boji that spans two city blocks. Krause Benefits ...... 1 net income, five plans posted lower Level One Bank ...... 24 profits and one Little Caesar Enterprises ...... 25 plan remained Loomis Sayles & Co...... 13 IN DETAIL the same com- Maddin, Hauser, Wartell, Roth & Heller ...... 25 pared with the From 1 building to 2 city blocks Michigan Bankers Association ...... 13 Comparison: Net income for same six months Och-Ziff Capital Management ...... 3 HMO plans in in 2009. Omni Care Health Plan ...... 23 Southeast Health Plan of Inkster development pieces fall together, fill gap OZ Management LP ...... 3 Michigan, Michigan, a De- Palace Sports & Entertainment ...... 25 Page 23 troit-based Med- BY DANIEL DUGGAN district office for the Department Park West Galleries ...... 20 Peninsula Capital Partners ...... 25 icaid HMO, post- CRAIN’S DETROIT BUSINESS of Human Services, a new facility ed $4.8 million There was a sense for the YWCA of Western Wayne Plante & Moran ...... 13 net income for After winning the development “ County, a new Inkster Police Depart- Priority Health ...... 23 the same period contract in 2008 to build an office of urgency by ment building combined with the Somerset Inn ...... 9 in 2009 and 2010. building for the Michigan Depart- 22nd District Court and a Michigan Special D Events ...... 10 Overall, the ment of Human Services in Inkster, everyone involved to Secretary of State office next to a Total Health Care ...... 23 commercial, Ron Boji started the process of de- restaurant. Valenti Capital Management ...... 25 Medicaid and veloping one building on Michi- see it completed. The $25 million, 7-acre site, is Westin ...... 9 Medicare HMO gan Avenue. ” bringing 92,500 square feet of new Young and Susser ...... 20 plans in metro- Two years later — through a Ron Boji, building space to Inkster. YWCA of Western Wayne County ...... 3 politan Detroit fortunate chain of events — Boji Boji Group To structure the deal, Boji en- increased net is preparing construction for the dured two years of tense moments Murdock income to Inkster Marketplace, which has especially in the environment at and small victories. $62.1 million in the first and sec- become a four-building develop- the time, that this would come to- Starting the process was the Department index ment spanning two city blocks gether like it has,” said Boji, pres- ond quarters of 2010, from state of Michigan’s decision in BANKRUPTCIES ...... 21 $55.8 million for the same six- with three office buildings and a ident of the Lansing-based Boji 2008 to award Boji the job of devel- BUSINESS DIARY ...... 16 month period in 2009. retail building. Group. “It’s been an amazing pro- oping a new human services Rick Murdock, executive direc- The development fills a vacan- ject, and there was a sense of ur- building. CALENDAR ...... 19 tor of the Michigan Association of cy created in the city with the gency by everyone involved to see During the city’s approval CAPITOL BRIEFINGS...... 4 closing of a car dealership in 2002. it completed.” CLASSIFIED ADS ...... 20 See HMOs, Page 23 Included in the project is a new See Inkster, Page 24 “I never would have thought, KEITH CRAIN...... 6 OPINION ...... 6 Guest blogger You still have time OTHER VOICES ...... 7 Register for Wednesday’s Crain’s THIS WEEK @ Dave Haviland helps solve the PEOPLE ...... 18 Rubik’s Cube that is second- Michigan Business event in the Bay Area. WWW.CRAINSDETROIT.COM stage business. Read more at crainsdetroit.com/haviland Get details at crainsdetroit.com/events RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20100920-NEWS--0004-NAT-CCI-CD_-- 9/17/2010 5:06 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 20, 2010 Candidates say they’ll change or end MBT GRAND RAPIDS — and increase efficiency approach that he’s seen discussed Michigan’s main busi- by crafting budgets based in Lansing, hitting on retirement ness tax is headed for a Capitol on priorities and perfor- one time, health care another time. shakeup or death, de- Briefings mance and not previous “Fundamentally, there’s a total pending on whom Michi- spending levels. compensation issue. Let’s try to gan elects as its next gov- Conference partici- put a solution in that’s going to ernor. pant Birgit Klohs, presi- last for 10-20 years,” he said. At the Grand Rapids dent and CEO of The Snyder also supports consolidat- Area Chamber of Com- Right Place Inc. economic ing services among jurisdictions. merce policy conference development organiza- In other areas: last week, the state’s two tion in Grand Rapids, ■ Neither candidate supports candidates for governor said that whatever the making Michigan a “right-to- outlined their plans. candidates’ business-tax work” state by enacting laws to Lansing Mayor Virg Amy Lane plans, she wants to see a prohibit unions from requiring Bernero would eliminate business tax that is sim- worker dues and membership as a the 21.99 percent surcharge on the ple, easy and fair. condition of employment. Michigan Business Tax and then The MBT, she said, “is the only ■ In economic development “work to re- tax of its kind that you cannot ex- strategy, Bernero said Michigan form” the plain to anybody.” needs both an attractive business WEB EXTRA MBT, develop- Doug Rothwell, president and climate that is not tax-prohibitive, Read Crain’s ing changes in CEO of Business Leaders for Michi- and to continue to target areas that Detroit Business concert with gan, said the tax-restructuring are emerging sectors, as well as Publisher Mary the business challenge Michigan faces is manufacturing. Kramer’s blogs community, he twofold: a structural deficit that is Snyder said Michigan does too from the Grand Rapids Area said at a West nearly 20 percent of its general- much chasing of out-of-state compa- Chamber of Michigan Policy fund budget, and “a desperate need nies with tax incentives and needs Commerce policy Forum question- to grow the economy.” to take care of its in-state business- conference, and-answer It will be difficult to reduce busi- es. He said targeting is not appro- including insights session moder- ness taxes without also tackling priate and government should not on labor issues ated by Crain’s the structural deficit, he said. pick “winners and losers.” and more, Detroit Busi- In terms of the budget, Bernero crainsdetroit.com ness Publisher pointed to his experience as Lans- /kramer Mary Kramer ing mayor as evidence he’s up to a Comings & goings and Grand tough budget task. ■ Daniel Cherrin, former presi- Rapids Press Editor Paul Keep. “I’ve been mayor of Lansing for dent of North Coast Strategies, a “I’m not going to do it from the five years, I’ve balanced five bud- Royal Oak-based public affairs and top down,” Bernero said. “I’m go- gets in a row with no tax increase. public relations firm, has become ing to work with the people who I cut $42 million in deficits over senior attorney and director of are directly affected.” five years,” Bernero said. marketing with Fraser Trebilcock But he didn’t offer specifics and Bernero said people “are not Davis & Dunlap PC, in the law firm’s said it was not wise to try to con- clamoring for a tax increase” so Lansing and Detroit offices. He is struct a new tax policy in the midst that the state can continue to oper- also a lobbyist and public relations of a campaign. ate the same way. He said govern- consultant with affiliated Fraser “I can’t tell you that we have an ment can be more efficient, and he Consulting LLC. exact prescription right now,” he also said that as mayor he was also ■ Paul Long, vice president for said. “I think we (the state) have able to work with unions to obtain public policy for the Michigan gotten into trouble in the past do- concessions, without layoffs. Catholic Conference, is becoming the ing things in haste.” Local governments and school conference’s president and CEO. Bernero did, however, pledge to districts also need to look at effi- He will replace Monica Kostielney, “never increase taxes on small ciencies, and the possibility of con- who retires in November. business. That’s where we need to solidating services, he said. ■ Mark Hornbeck, former chief be growing, that’s where we’re go- Snyder said in addition to his political writer for The Detroit ing to create jobs.” outcomes-based budgeting ap- News, recently became communi- Republican gubernatorial candi- proach, he would look at public-em- cations director for AARP Michigan. date and Ann Arbor businessman ployee compensation, but not in Amy Lane: (517) 371-5355, Rick Snyder plans to eliminate the what he described as a piecemeal [email protected] MBT entirely and replace it with a 6 percent corporate income tax that would apply to “C” corpora- tions, which have shareholders and are the most-common type of Self-Employed? business entity. Snyder said C corporations would benefit by no longer paying Affordable Insurance taxes on modified gross receipts, as is the case under the current MBT, and the new corporate in- come tax would not be paid by Life most individually owned business- es like sole proprietorships, LLCs Health and other smaller businesses. Snyder said that the MBT is Retirement “fundamentally unfair” and needs to be eliminated. “We need to Long-Term Care move from a job-killer tax environ- ment to a job-creation tax environ- ment,” he said. (800) 987-0290 To help cover the $1.5 billion tax cut he says would result, Snyder would look toward revamping state government’s budget system with a Zayti Agency process that is performance- and IIS000320 outcome-based. Snyder said such “value for money” budgeting would Call your local Insphere office for a FREE quote today! force the state to reduce spending DBpageAD.qxd 7/27/2010 9:48 AM Page 1 20100920-NEWS--0006-NAT-CCI-CD_-- 9/17/2010 5:07 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 20, 2010 OPINION Cheers for candidates’ talk of MBT reform everal news items came to our attention this week that seemed to call for cheers or jeers: S Cheers: Gubernatorial candidates Virg Bernero and Rick Snyder were at the Grand Rapids Area Chamber of Commerce policy conference last week and weighed in on the Michigan Business Tax. There’s good news for business: Both candidates favor do- ing at least some reform of the tax. As Amy Lane reports on Page 4, Bernero would eliminate the wildly unpopular 21.99 percent surcharge on the MBT and then would institute some kind of as-yet unspecified reform. Snyder would eliminate the tax altogether and replace it with a 6 percent corporate income tax on “C” corporations, the most common type of corporate entity. Both candidates, of course, would need to work effectively with the incoming Legislature to enact changes, but it’s good to know it’s a priority. As Birgit Klohs, president and CEO of The Right Place Inc. economic development organization in Grand Rapids, said: The MBT “is the only tax of its kind that you cannot explain to anybody.” Jeers: As predicted, Pure Michigan won’t have a fall ad- vertising campaign, the first time since 2005. The state’s bud- get woes are the culprit, but we can’t help but continue to feel TALK ON THE WEB the move is shortsighted. The campaign has been honored, widely recognized and effective. It’s the kind of program that From www.crainsdetroit.com deserves investment. three miles’ worth of turnarounds. Re: Business could help Reader responses to stories and Cheers: … How long is it going to take Luxury carmaker Porsche AG is set to return to ease DSO contract discord blogs that appeared on Crain’s the 2011 North American International Auto Show next year them to finish this (Rochester There is no doubt that it is im- Web site. Comments may be Road) project of a mile that they after a three-year hiatus. Others may soon follow, including portant to maintain the artistic edited for length and clarity. started in, I believe, April? Who’s Nissan and Infiniti. standards of the DSO, not only for running these projects? Jeers: The United Auto Workers called for a boycott of An- art’s sake but for the status of De- Re: Monica Conyers goes to prison Carol Marshall diamo restaurants this week based on complaints from some troit among U.S. cities. Musiclover I hope she will learn a valuable les- workers that the company withheld tips, among other viola- It’s an inspiration and a relief to son about taking political bribes, Re: Snyder, Bernero share stage tions. There are well-defined ways for workers to pursue com- see positive attitudes like Mary honesty in government and re- Are debates in Michigan really all plaints against employers — in this case there’s an ongoing Kramer’s, which at least urge a spect for her constituents. Barring that helpful when they are moderat- federal lawsuit — and a boycott seems disproportionate. resolution that will keep the DSO a that, I hope she stays in West Vir- ed by our local television news- ginia. readers … (asking) a bunch of per- The boycott so far also has seemed ineffective. Com- viable and respectable (musical) arts institution that our city so desper- Timothy Dinan sonal or “gotcha” questions? The menters on the story at www.crainsdetroit.com mostly ex- ately needs. Most likely this is only the tip of only insightful format would be a pressed their plans to dine more often at the company’s restau- horko the iceberg. More to follow. true debate with strict rules, nar- rants. This is a great article. Thank you, Car Nut rowly crafted questions provided Mary Kramer. Cheers: One of metro Detroit’s most old-school tourist to the candidates beforehand and Artslover moderated by a parliamentarian. attractions, the Edsel & Eleanor Ford House, is attracting Re: Patterson calls for tax break for businesses in construction zones TS Galloway national attention for its new virtual tour. As Sherri Welch Re: Mayor’s plan needs biz support Political debates are nothing reports on Page 1, the tour app is available for download to So, does the area between these I am affected by both the Tele- more than dual press conferences. iPhones, iPads and smart phones, or for viewing during neighborhoods or “settlements” graph Road and Rochester Road Politicians never answer the ques- become no-man’s land? Who will en- construction projects. It is ab- tours on an iPod Touch loaned from the museum and makes tions asked with any real details. sure safe passage from one neighbor- solutely ridiculous that Tele- Gerald Bricker available for the first time one-of-a-kind items for public hood to the next? graph’s construction can be com- viewing. Slim Pickins pleted in phases instead of closing See Talk, Page 7

KEITH CRAIN: Candidate debates are not among our rights

There is a lot of conversation home, but it’s fairly ob- smart, and I have no portunity to appeal to the folks who lic offices jockeying for position. these days about whether there vious to most of us. doubt he is that, there are planning to vote for you? This is going to be a very unusu- will be debates between the two Why would Rick Sny- will be no debates. Rick Snyder is smart to stay on al election. There are going to be a candidates for Michigan governor. der want to have a debate One of the cardinal message. If he could hide out for lot of surprises and upsets. We’ve Virg Bernero has been doing with his opponent when rules of marketing is the next six weeks, he’d be smart already seen a lot of upsets, and I everything in his power to try to he has not a thing to gain that when you are in the to try. am sure we’ll see a lot more. convince the voters of Michigan and everything to lose? No. 1 position with cus- Virg Bernero is just as smart to There can be all sorts of surpris- that they have a God-given right to I remember when tomers, you don’t let keep pushing for a debate. Even es in our state races in the next few view debates with his opponent. Gov. John Engler was up your competition get in- one is better than nothing. Sure, if weeks, but we’ll have to wait and On the other hand, Rick Snyder against Geoffrey Fieger, roads into your cus- he could, he’d love to have a half see. is finding it difficult to somehow and there were no de- tomer base. dozen debates. But he knows it’s But the one thing that seems get together with his opponent to bates. As I recall, Fieger The same rules apply not going to happen. fairly certain is that during this stage a few debates. lost by some huge margin. to politics. When you have a 24-per- This is marketing of the first de- campaign for governor, we’re not We can listen to all of the You can call this anything you centage-point lead, why would you gree, and it’s interesting to watch going to see any debates. Is anyone rhetoric until the cows come want, but if Snyder is politically want to give your opponent any op- the candidates for all of these pub- really surprised? 20100920-NEWS--0007-NAT-CCI-CD_-- 9/17/2010 5:08 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 7 OTHER VOICES: We’re on front lines of rebuilding Detroit The General Motors funding. The fund has de- magazine calls Solomon a “vision- leaders have stepped up to create a economy, has demonstrated social IPO may well be a symbol- ployed more than $500,000 ary of Detroit.” supportive infrastructure for en- entrepreneurship in designing ic awakening and rebuild- in the region in startups Oliver Baer, CEO of Clean Emis- trepreneurs in Detroit. Having some of the most creative tool kits. ing of Detroit. Other indi- that have the potential of sion Fuels, has launched a patent- lived the challenges, they chose to Leslie Smith gave up a cushy job cators point to the fact becoming anchor compa- ed fuel-blending system that has help create the next generation of in Lansing to be the general man- that the phoenix of the nies. These companies are attracted the attention of major entrepreneurs. ager at TechTown. Midwest has started to still nascent — but the en- fuel distribution companies. Oliv- Alan Gilmour, president of Entrepreneurs like Solomon, rise and regain its stride. trepreneurial drive is evi- er, who has named his son Diesel, Wayne State University, agreed to Baer and Hanson may seldom Quicken Loans has dent. works 5-9 as opposed to the 9-5 serve on the First Step Fund’s cross paths with Alan Gilmour or moved its headquarters to Antonella Solomon, co- work culture of yesteryear. committee, as did 10 of the leading Dan Gilbert. But these front-line downtown, but what’s founder of Launch Learn- Scott Hanson, founder of Ambiq business and investment experts soldiers should take comfort in the even more exciting is Dan Mahendra ing Group, aims to im- Micro, has developed the world’s of Southeast Michigan. Their only fact that while they are busy re- Gilbert’s nonprofit incu- Ramsinghani prove the pass rate of most energy-efficient microcon- motivation was to bring their busi- building Detroit, behind them bator, Bizdom U, which has insurance certifications with a dif- troller. Ambiq Micro recently won ness acumen to target the entre- stand some of the best hearts and spawned a dozen startups in the ferentiated learning tool set. In an a global business plan competi- preneurial grass-roots efforts. minds of the region. past two years. At TechTown, an- industry where a 50 percent pass tion, beating 11 teams from around David Egner, who leads the New Mahendra Ramsinghani is man- other incubator in the region, en- rate is standard, her students are the world. Economy Initiative’s $100 million aging director of the First Step trepreneurial activity brims over at more than 80 percent. Fortune Behind the scenes, the region’s effort to revitalize the regional Fund. to Tech Two — in a building that was a former Cadillac dealership. That’s because there is not much room available at Tech One. Since the First Step Fund, a mi- cro-investment fund, was launched about 90 days ago, more than 75 startups have applied for “My company helps businesses with their employee benefi ts including TALK CONTINUED benefi ts for retirees who qualify ■ From Page 6 for Medicare. We always start the Re: UAW calls for boycott of Andiamo restaurants to support workers conversation with Blue Care Network.” If the UAW thinks it’s going to rally the educated public, it is cor- — Ken Rauschert rect. I will be booking all my fu- ture lunch and dinner meetings at Partner, Lakeshore Employee Benefi ts Andiamo’s. The days of accepting and protecting mediocrity in the work- place are over. Stano I am going to schedule a large group dinner there now. Will the UAW ever get a clue, or does it need to lose what little is left of its member- ship first? Walt Every Andiamo location offers outstanding dining experiences, Blue Care Network has Medicare options with all of the waitstaff appearing to be very satisfied to be working you and your employees can trust. there. This boycott — intended to malign an excellent reputation — Blue Care Network’s BCN Advantage HMOSM plan has been chosen by many only reinforces my intentions to spend more of my discretionary income at individuals and businesses because of one fact: it’s an exceptional value from a their establishments. company they can trust. Louise Braun I am glad to hear the UAW is supporting the Andiamo workers. Outstanding service and access to quality care are what matter most to Medicare I will not go there until the boycott is beneficiaries. And that’s exactly what BCN Advantage provides — which is why Ken lifted. James Pita Rauschert of Lakeshore Employee Benefits believes so strongly in it.

Re: Hotel Baronette joins Marriott Whether you have a large group or a small one, BCN Advantage has a Medicare plan Two additional components that’s right for your business. Learn more by visiting us online, contacting your Blues would be interesting in helping as- sess the value of the report: rental representative or independent agent or calling Blue Care Network today. rates and population changes. J.T. Pedersen )*5(K]HU[HNL/46 CONTACT INFO: Re: Social media use by Michigan call 1-866-966-BLUE (2583) tourism gets high marks TTY users call 1-800-431-7944 I’m excited about it and I hope to (8 a.m. to 5 p.m., seven days a week) see some diverse entrepreneurs and their projects. There are many or contact your Blues representative Medicare and more throughout the city, not just in the or independent agent. pockets south of the boulevard. %OXH&DUH1HWZRUNRI0LFKLJDQLVDQRQSURILWFRUSRUDWLRQDQGLQGHSHQGHQW OLFHQVHHRIWKH%OXH&URVVDQG%OXH6KLHOG$VVRFLDWLRQ zuluqueen SM Re: Policy conference: Michigan faces MiBCN.com/medicare Leading Michigan to a healthier future. a ‘come-to-truth moment’ Michigan may do well to look at Health plan with a Medicare contract. Texas. Part-time legislature with- out term limits works. H5883_S_BCNALakeshore 0910 149809 20100920-NEWS--0008-NAT-CCI-CD_-- 9/17/2010 1:57 PM Page 1

UPCOMING PARTNER EVENTS

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Salute! to Healthcare in Southeastern Michigan Strolling Dinner and Awards Program. Bringing together the who’s who in healthcare to recognize outstanding healthcare leaders and organizations. Oct. 7 • 5:30 – 8 p.m • Detroit Institute of Arts Bay View Inn Perry Hotel To register, go to www.gdahc.org. Built in 1886, in the historic Built in 1899, in Petoskey’s landmark district of Bay View. Historic downtown Gaslight District. 2010 MSAE Association Law Symposium 31 guest rooms t 4 meeting rooms 79 guest rooms t 5 meeting rooms Sponsor: Foster Swift Collins & Smith PC 800-258-1886 800-737-1899 This executive level program is designed to update Stafford’s Perry Hotel and Bay View Inn you on the newest legal, financial and human in Petoskey resource changes that affect your organization. Nov. 17 • 8 a.m. – 5 p.m. Grand Rapids 185 miles Detroit The James B. Henry Center for Executive 243 miles Development – Lansing, Michigan Contact our Sales Department to book your meeting today at 231-348-6017. To register or for information visit www.msae.org. STAFFORDS.COM Visit crainsdetroit.com/events for information on Crain’s 2010 events 20100920-NEWS--0009-NAT-CCI-CD_-- 9/16/2010 4:59 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 9

A CONVERSATION WITH NEW PITCH FOR CONVENTIONS Visitors bureau spotlights economic diversity in its new ad campaign, “Detroit 3.0,” Page 11 Walt Watkins, Detroit Regional Convention Meetings and Conventions Facility Authority

In August, the Detroit Regional Convention Facility Authority approved three measures seen as being crucial to the Cobo Center becoming an independent body. The board voted to negotiate a Still rooms at contract with Pennsylvania-based SMG to manage the center. Detroit- based Albert Kahn Associates was picked as architect for renovations, and an $80 million credit line was approved with Wells Fargo Bank. Crain’s reporter Daniel Duggan spoke with Cobo authority interim CEO Walt Watkins about the significance of these steps. the inn Why did you pick SMG? This is one of the largest convention center operators in the world, working with roughly 200 facilities. But what made them really stand out is that Small corporate meetings lag rise in hotel occupancy they have been involved with situations similar to Cobo; with renovations starting, a need to BY DANIEL DUGGAN increase revenue and implement a CRAIN’S DETROIT BUSINESS marketing plan. We’re working to finalize a contract or local hotels, there’s been good with SMG and expect them to take news and bad news in business per- over operations from the interim F formance measures. team by Oct. 1. The good news? Occupancy at hotels is On the topic of renovations, what increasing, up nearly 20 percentage work will the Albert Kahn architects points above early 2009 numbers. do? So far, we have put in $3 million The bad news? Business travelers in short-term fixes and we have aren’t gathering at hotels for small corpo- approved another $6 million. Kahn rate meetings like they used to. will help us evaluate what other While the hospitality industry has improvements are needed, and the been relieved to see occupancy figures priority of the improvements. coming back to stronger levels, industry Is there an estimated cost of professionals say the meeting component improvements yet? We have an is just as crucial to profitability — or to estimated spend of $28 million, finding a return to profitability. with the possibility to spend up to There are some encouraging early indi- $40 million, depending on the cators being seen. results of the evaluation. “For a corporate hotel, you’re going to What are some of the bank on 30 to 40 percent of revenue com- improvements? ing from small business meetings,” said We plan to enclose the loading Ron Swanson, director of operations for dock, build a second ramp that can the Somerset Inn in Troy. “Without those be used to load and unload trucks, meetings, you’re looking at the loss of a a small expansion of one hall, pretty big part of the revenue.” improve the elevators and While no hotel has seen a large in- escalators and improve electrical crease in meetings, some are seeing early systems. We expect to have the full indicators. And many hope that the occu- list by the end of the calendar year. GLENN TRIEST pancy increase is the forecast of a meet- Jerry Tononi, general manager at the Westin hotel in Southfield, said he is encouraged that he Was it difficult to find a lending ing increase heading into the fall. now is getting calls from meeting planners. “For a while, there has been nothing, not even talk.” institution? Yes. Even though we Jerry Tononi, general manager of the have the benefit of a hotel and Westin hotel in Southfield — which re- cial aspects of the meeting will come to- “All the travel man- liquor tax, which is a predictable cently opened a 5,900-square-foot meeting gether, so there is still a guarded opti- revenue stream, it’s just not easy to and conference center in 2008 — said he agers we’ve been talk- mism out there.” get any kind of financing today. is getting calls now from planners who ing to have said they Another issue we have is that even are starting to talk about meetings. Tononi also added that if an increase in are seeing larger trav- though Cobo has been in existence “That’s actually an meetings comes, the ho- el budgets,” Wilson for a long time, we are essentially a encouraging sign,” he tels won’t know about it said. “With that, we new entity under the regional very far in advance. will see an increase in authority. said. “Because for a Without those while, there has been Meetings were typically meetings and corpo- So, the Wells deal was huge. We’ve “ nothing, not even talk.” booked more than a year rate travel. The faucets been approved in an $80 million meetings, (a But, unfortunately, or two in advance and are are being turned on transaction, payable over the now are being booked Wilson again.” course of two years. Of that money, the talk has not turned corporate hotel is) just several months in ad- Occupancy at hotels has been on a we will be refunding money that has to booked business in steady climb, according to data from Hen- already been spent and paying many cases, he said, as looking at the loss of vance. $20 million to the city. companies that would “The booking window dersonville, Tenn.-based hotel research typically fly vendors, a pretty big part of has shrunk to almost firm STR. If you know someone employees and consul- the revenue. nothing,” he said. The low point for the Detroit hotel mar- interesting in real tants to one location for Another leading indi- ket was in December 2008 and January estate, retail or a meeting are just as ” cator of an increase is 2009 when overall occupancy for the re- hospitality Daniel hesitant to make a com- Ron Swanson, Somerset Inn that travel managers are gion was 40 percent. Numbers for 2009 Duggan should mitment as they have seeing a boost in their peaked in June with 54.4 percent occu- interview, call (313) been for the past year and a half. budgets, said Ron Wilson, pancy before falling to 41.5 percent in De- 446-0414 or write “Our biggest difficulty is getting CEO of Troy-based Hotel Investment Ser- cember. dduggan through the contract phase,” Tononi said. vices, which oversees a portfolio of 12 ho- @crain.com. “They want to make sure that the finan- tels, 10 of which are in Michigan. See Rooms, Page 10 20100920-NEWS--0010-NAT-CCI-CD_-- 9/16/2010 4:24 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS September 20, 2010 Focus: Meetings and Conventions Rooms: Rates also down ■ From Page 9

In 2010, hotel occupancy has in- 2011,” he said. creased each month compared Corporate event work has been with the previous month, starting increasing, just not the scenario of with 44.5 percent in January and companies flying people to metro finishing in July with 61.5 per- Detroit for companywide meet- cent. ings, said Carol Galle, president of The glaring issue in the hotel re- Royal Oak-based Special D Events port, however, is the rental rates. Inc. Year to date, the average daily She said her corporate event rate for hotel rooms in metro De- business has shown dramatic in- troit, according to creases com- STR, is $75.10, com- pared with last pared with the 2009 We’re year and has average of “ been higher than $81.31 for the optimistic pre-recession lev- same period els for the past and $88.39 in there will be six months, she 2008. said. The down- increases “There was a turn has in 2011. lot of pent-up de- caused hotels ” mand, and we’re to decrease seeing a lot of Carol Galle, rates for per- things happen- Special D Events sonal and cor- ing right now,” porate travel, said she said. Robert Habeeb, president and COO She has organized several grand of Rosemont, Ill.-based First Hospi- opening events and other corpo- tality Group, which owns and oper- rate events this year. What she has ates a portfolio of hotels in the not seen, however, are the large Midwest, including the Hampton corporate meetings at hotels. Inn hotels in Ann Arbor and South- “But my sense is that those field. events are coming next,” Galle “There is still a perception said. among customers that everything The meetings will come back, is on sale,” he said. “So, while glob- said Shannon Dunavent, general ally there (have) been increases in manager of Doubletree Guest Suites demand every month since Decem- Fort Shelby/Detroit Downtown. And ber, rates aren’t increasing.” she’s adopted a strategy to be in Habeeb is seeing small corpo- the right position when things do rate meetings coming back in a come back. trickle as advanced bookings are The hotel has a full-time corpo- looking more promising. rate meeting sales staffer who has “But the larger meetings are go- kept contact with many of the cor- ing to require a lead time, so even porations in the region that might as we see the base of bookings in- host a meeting. crease, it will take a couple years “Having someone out there ded- before we’re back to where things icated to this market is crucial,” need to be,” he said. she said. Nationally, commercial travel “We’re optimistic there will be demand has increased 5 percent to increases in 2011. And when the 10 percent, said conference center customers start shopping around, industry consultant David Arnold, if you don’t get there first, some- CEO-East of Philadelphia-based one else will — because we all need Colliers PKF Consulting. the business.” “Overall, we don’t see signifi- Daniel Duggan: (313) 446-0414, cant corporate group growth until [email protected] 20100920-NEWS--0011-NAT-CCI-CD_-- 9/16/2010 4:25 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 11 Focus: Meetings and Conventions Convention bureau’s new campaign spotlights economic diversity

BY DANIEL DUGGAN need to hear that we are working cent marketing. The idea of pro- “We really comes to selling people or busi- CRAIN’S DETROIT BUSINESS on some pretty impressive stuff, moting the region’s diversifica- are changing nesses on metro Detroit, the stigma from intermodal transportation to tion stresses positive aspects that and evolving,” of bad news in the area has to be The pitch to convention plan- new green technology.” are often overlooked outside of he said. “To talk overcome as well. ners for coming to metro Detroit Baum said the bureau began Michigan, said John Bailey, man- about it is im- In the past it wasn’t as necessary will now include the region’s eco- nomic diversification. working on its new campaign long aging director of Grand Rapids- portant.” to tell people in other parts of the A new marketing campaign before Republican gubernatorial based Lambert, Edwards and Associ- Bailey, who is country that Detroit does other will be rolled out in early October candidate Rick Snyder started ates. part of the pub- things besides make cars, he said. as the Detroit Metro Convention & calling his campaign “Michigan Sectors such as medical technol- lic relations “We’ve always been more than Visitors Bureau meets with more 3.0.” ogy are growing and have been team for the automotive, it’s just that now we than a dozen planners in Wash- The bureau campaign will not successful for years, Bailey said, Bailey North American have to emphasize it,” Bailey ington, D.C. replace the brushed steel “D” and and automotive suppliers are find- International Auto Show, has repre- said. Called “De- related D branding campaign that ing ways to manufacture nonauto- sented other convention business- Daniel Duggan: (313) 446-0414, troit 3.0,” the has been central to the group’s re- motive products. es in the past. He said that when it [email protected] new campaign focuses on the region’s suc- cess in econom- ic diversifica- tion — part of a strategy to broaden the scope of indus- tries that can be courted to We the area for “ conventions, aren’t said Chris Baum, senior just vice president hoping to of sales and marketing for diversify the bureau. “The thing a five years lot of people don’t realize is from that we aren’t just hoping to now, diversify five years from we’re now, we’re do- ing it today,” doing it Baum said. “This cam- today. paign is about ” six industries Chris Baum, for the region Detroit Metro that are getting Convention & traction. Visitors Bureau “It’s a com- pelling story for the region, and it’s a reason for new conventions and meet- ings to come here.” The Detroit 3.0 campaign is to showcase the growing local im- pact from industries that include defense, medical research, urban farming, green technology, logis- tics through the aerotropolis pro- gram, entertainment and auto- motive. The bureau has been broaden- ing its reach by focusing internal sales staff on different industries, but now the group’s marketing will stress the diverse businesses of metro Detroit. Baum said that past conven- tion marketing campaigns have been based on new capital invest- ment in the region with hotels and the rise of the casino indus- try. As that story dried up, he said there has been a need for a new story that the bureau can use. Emphasizing that the automotive industry is improving at the same time other industries are growing shows a success story, Baum said. “It’s important for people with a cursory knowledge to hear about things other than the car industry,” Baum said. “They 20100920-NEWS--0012,0013-NAT-CCI-CD_-- 9/16/2010 5:01 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 20, 2010 Extra

beyond startup A CONVERSATION WITH The price Ed King, Wayne State University

Ed King, director of small-business services in Wayne State University’s department of professional and executive development, has a résumé that includes CPA credentials, a gig at PricewaterhouseCoopers L.L.P., the acquisition of an MBA and a stint as a of change carny. He talked to reporter Nancy Kaffer about growing a customer base. It’s the eternal question: How can a Proposed accounting rules could dry up capital for business, banks say business boost its sales? There are only three ways you can build up your sales: BY TOM HENDERSON You can get new customers, existing CRAIN’S DETROIT BUSINESS customers can buy more … or they can Every time I lose a buck as a result of an frequent the business more often. econd-stage companies think it’s “ Business owners typically get most tough getting financing now, but a artificial write-down, that hurts my ability excited about new customers, but if you S proposed accounting standard for put that same effort in terms of time how banks judge the value of commer- to lend by seven or eight bucks. and money into your old customers, you cial loans in their portfolios could make ” get a better return. Instead of $1 in obtaining financing even more difficult. Michael Ross, Fidelity Bank sales you get $5 in sales. Local community bankers say the rule, proposed May 26 by the Financial So let’s talk about that. How do you get a customer to spend more? You have to Accounting Standards Board, penalizes destined to rise. Zero percent leaves worth less. be somewhat imaginative. The classic them for the excesses of their far larg- nowhere to go but up. In theory, if the The proposed FASB change would re- is: “Do you want fries with that?” er Wall Street cousins, makes little Fed’s interest rate increased to 4 per- quire that dry cleaner’s loan and others sense and will reduce the amount of When the customer comes in, you cent or 5 percent, that 8 percent loan to to be judged as having less worth. That have to ask, “What else can we sell money they have available to lend to the dry cleaner would be harder to sell could result in reductions in assets, in- you? What add-ons do we have?” small and second-stage businesses. on the resale market, and therefore creased loan loss provisions, a need to FASB wants banks set more capital aside to re- How do you get customers to come to determine the resale main well capitalized by regu- back more often? If I took over your value of commercial latory standards and — the bot- business, the first thing I would do is loans in their portfolios, tom line for small businesses — look at your customer list and find the and change the value of less money available for lending. customers you haven’t seen in a year. those loans as interest rates The irony, says Michael Ross, I would get on the phone, send a letter rise and fall. In theory, if in- president and CEO of Fidelity and say: “Where have you been? We terest rates rise, the loans’ have a special going on — 20 percent Bank, is that such loans aren’t for resale value is less, and off. We have a new selection and sale, and even if the bank wanted should be accounted for on we’ve got to get you in here.” to sell them, there is no market quarterly statements. for them. The reason they are in Most business owners think their Banks say it’s a pointless customers don’t come back because the portfolio is the bank is hap- exercise, since the value they got a better price elsewhere. But if py making the spread between of those loans is in the you ask the customers, they don’t what it paid for money and come back because they felt neglected. cash they generate as what the dry cleaner is paying. they are paid off, and that Take the 20 percent of your customers It’s not like the mortgage there is no resale market who generate 80 percent of your sales business at its prime (or sub- for them. They say the and find out as much about them as prime), he said, when buyers you can. When is their birthday, proposed standard will lined up to purchase loans anniversary? How many teeth does their unfairly impact their bot- that banks were eager to sell. brother have? Throw a party, an event, tom lines and reduce the “We do mark-to-market ac- make those people feel special. funds they have to loan counting now on traded as- to small businesses. sets like bonds and trea- Any final words of wisdom? You’ve got Say, for example, Fi- suries in our portfolio, to be different from everybody else. delity Bank of Dearborn because there is a market for Maybe you’ve got to have a larger has loaned a neighbor- them. That makes sense,” selection, free installation, a money- hood dry cleaner said Ross. “FASB is looking back guarantee, a 20-year warranty ... $100,000 at 8 percent to any special thing you can give, for fair value on our loans, install new equip- because you cannot compete with but there isn’t one. There’s ment. Now, at a time Wal-Mart (on price). no way for fair value to be when the Federal Re- developed. serve is loaning mon- “Under this proposal, ey to banks at zero or you can have a fully per- Nancy Kaffer covers near zero percent, forming loan that you small business, that loan is in theory have to write down, and second-stage worth more on the that makes no sense. companies and resale market than Every time I lose a Detroit and Wayne if the rates were to buck as a result of an County suddenly rise. government. And rates are See Change, Page 13 ISTOCKPHOTO.COM 20100920-NEWS--0013-NAT-CCI-CD_-- 9/16/2010 5:16 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 13 Second Stage Extra Change: Proposed accounting rules could tighten biz lending ■ From Page 12 artificial write-down, that hurts is simply a result of FASB trying “Can it be done? Yes. Will it be So far, lobbying against the pro- market change. my ability to lend by seven or eight to come up with the best model to difficult? Yes.” posal has been an uphill battle. Terry McEvoy, an analyst with bucks,” he said. determine fair value of the loans. David Sowerby, chief market an- “We have called on a lot of con- New York-based Oppenheimer & Co. “How does this affect the local “As interest rates go up, the val- alyst in the Bloomfield Hills office gressman, and their attitude is Inc., is opposed to the proposed dry cleaner? It will raise his cost ue of a loan goes down,” he said. of Loomis Sayles & Co. L.P., said the they do not want to be seen as med- change. “Coming up with fair val- and lower his ability to get a loan.” Uhl said Deloitte was in the proposed FASB standard is well- dling in accounting standards af- ue will be one assumption based Since 1973, FASB has been the process of finishing its comment intentioned, but that the devil is in ter Enron,” said Dennis Angner, upon the next assumption based designated organization in the pri- letter to FASB and couldn’t com- the details. He favors some mark- president and CFO of Isabella Bank upon the next assumption. There’s vate sector that establishes finan- ment on the company’s position. to-market evaluation of loan port- Corp. in Mt. Pleasant and the no way for you and I to judge it, cial accounting practices, and its If FASB approves its proposed folios, “but with ceilings and Michigan representative on a com- and investors won’t place much standards are recognized as offi- change, Uhl said some of the hand- floors. There has to be some ac- mittee of the American Bankers As- value on it.” cial by the U.S. Securities and Ex- wringing will prove to be over- knowledgement of what’s the po- sociation that has been lobbying Nancy Kaffer contributed to this change Commission. wrought, though he acknowledged tential markdown price on a loan’s against the proposed change. report: (313) 446-0412, Banks and other interested par- that at the least the proposed valuation. In the end, you have to On Sept. 2, the Independent Com- [email protected] ties, such as accounting firms, have change will result in increased find something to value the under- munity Bankers of America joined Tom Henderson: (313) 446-0337, until the end of September to com- staffing and higher costs for banks. lying investment.” the ABA in opposing the mark-to- [email protected] ment on the proposed changes, which cover a broad range of con- cerns raised during the recent banking crisis, including deriva- tives embedded in financial instru- ments, the acquisition of distressed debt and the mark-to-market rule for judging the worth of loans, which is the proposal of most con- cern to local community bankers. FASB hasn’t said when it will announce the final language of its proposals. Public banks would need to apply changes in 2012. Non- public banks would have until 2013. While the proposed change should mean more business for ac- counting firms, it strikes Brian Pollice, who heads up the banking practice at Southfield-based Plante & Moran PLLC, as an overreaction by FASB. “It’s horrible,” said Pollice. “Bil- lions of dollars could be wiped off banks’ books. … This is one time when mark-to-market makes no sense. “If you have to mark down the value of a loan even if it is performing, you’ve indicated to the public that your bank has somehow suffered a loss, Koons when in fact the income from that loan is exactly what you wanted. It’s an artificial condition,” said Dennis Koons, president of the Lansing-based Michigan Bankers Association. “This is something that could re- duce capital, reduce income, in- crease the cost of FDIC insurance and increase regulatory scrutiny for struggling banks,” he said. “Could it be the difference in whether a struggling bank stays open or not? In a word, yes.” And anything that makes banks more reluctant to lend can have a negative impact on second-stage businesses, said Mike Semanco, president of Huntington Woods- based Hennessey Capital LLC. Semanco said that business ac- cess to financing, which shut down after the economic crash of 2008, has been steadily improving in re- cent months. Learn invaluable business basics with Business 360. His first instinct is to be wary of It’s like getting any measure that would restrict a mini-MBA. One- or two-session certificate workshops include Accounting small-business lending. for Non-Accountants. Problem Solving. Marketing Management. Economics. “We need to be in the mindset of creating opportunities, not putting Finance. Business Law. And more. No homework or exams. Sessions start Oct. 1. banks at more of a disadvantage,” Register by Sept. 27 and receive an executive portfolio. he said. 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Page 14 CRAIN’S DETROIT BUSINESS September 20, 2010

CRAIN'S LIST: OAKLAND COUNTY'S LARGEST EMPLOYERS Ranked by full-time employees

Full-time Company Full-time employees Full-time employees employees Worldwide Address in Oakland County in Oakland County Michigan employees Rank Phone; website Top local executive Jan. 2010 Jan. 2009 Jan. 2010 Jan. 2010 Type of business William Beaumont Hospitals Gene Michalski 13,083 13,694 14,495 NA Health care system 1. 3711 W. 13 Mile Road, Royal Oak 48073 president and CEO (248) 898-5000; www.beaumonthospitals.com General Motors Co. Ed Whitacre Jr. 8,843 8,200 B 41,828 215,000 Automobile manufacturer 2. 300 Renaissance Center, Detroit 48265 chairman and CEO (313) 556-5000; www.gm.com Chrysler Group LLC Sergio Marchionne 6,170 C 6,710 19,423 47,470 Automobile manufacturer 3. 1000 Chrysler Drive, Auburn Hills 48326 CEO (248) 576-5741; www.chryslerllc.com Trinity Health Corp. Joseph Swedish 4,554 4,153 21,847 44,920 Health care system 4. 27870 Cabot Drive, Novi 48377 president and CEO (248) 489-6000; www.trinity-health.org St. John Providence Health System D Patricia Maryland 4,345 4,396 12,995 12,995 Health care system 5. 28000 Dequindre Road, Warren 48092 president and CEO (866) 501-3627; www.stjohnprovidence.org Blue Cross Blue Shield of Michigan/Blue Care Network Daniel Loepp 3,588 3,959 6,992 6,992 Health care insurer 6. 600 E. Lafayette Blvd., Detroit 48226 president and CEO (313) 225-9000; www.bcbsm.com U.S. Postal Service Southeast Michigan District Karen Schenck 3,499 3,540 NA 597,286 Postal service 7. 2351 Bellingham Drive, Troy 48083-9000 district manager, customer (248) 524-6700; www.usps.gov service and sales Botsford Health Care Paul LaCasse 3,477 3,060 3,477 3,477 Health care system 8. 28050 Grand River Ave., Farmington Hills 48336 president and CEO (248) 471-8000; www.botsford.org Oakland County L. Brooks Patterson 3,416 3,416 3,416 3,416 Government 9. 2100 Pontiac Lake Road, Waterford Township 48328 county executive (248) 858-2581; www.oakgov.com Henry Ford Health System Nancy Schlichting 2,822 2,180 18,473 18,473 Health care system 10. 1 Ford Place, Detroit 48202 president and CEO (800) 436-7936; www.henryford.com

This list of Oakland County employers encompasses companies with headquarters in Livingston, Oakland, Wayne, Macomb or Washtenaw counties. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA means not available. B Crain's estimate as of September 2009. C Crain's estimate. D Changed name March 2010. LIST RESEARCHED BY ANNE MARKS

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September 20, 2010 CRAIN’S DETROIT BUSINESS Page 15 Headquarters purchase to keep Ilumisys in Troy

BY TOM HENDERSON tax credit to spur green manufactur- CRAIN’S DETROIT BUSINESS ing, part of $40 million awarded to local companies as part of a $2.3 bil- Ilumisys Inc., a low-volume maker lion pool of tax of LED lights that hopes to become credits called the an industry giant in the next few Recovery Act years, is expected to announce to- Advanced Ener- day that it has a new headquarters gy Manufactur- :KHQVFKPRR]LQJ building that will keep it in Troy. ing Tax Credit Ilumisys is a subsidiary of Altair that was con- Engineering Inc., a Troy-based engi- tained in the $787 neering firm with worldwide oper- billion federal ations. stimulus bill. WXUQVLQWRERR]LQJ Altair bought the 136,000-square- Ilumisys qual- Simon foot building on 8.9 acres at 164 In- ified because its dusco Court, just northwest of 14 LED lighting, which replaces fluo- Mile Road and Dequindre, about rescent lighting, is expected to cut three miles from Altair headquar- electricity use and hazardous waste. ters at Big Beaver Road and John R. In April 2009, the company ,W·VQRVXUSULVHWKDWHQWHUWDLQLQJLVJRRGIRUEXVLQHVV2UWKDWD'8, Following what is expected to be shared a U.S. Department of Energy a substantial rehabbing over the grant of more than $590,000 with LVYHU\EDGIRU\RXU52,-XVWDIHZGULQNVFDQSXWDQ\RQHRYHU next few months of the former post the National Center for Manufacturing WKHOLPLWFRVWLQJ\RXUFRPSDQ\WKRXVDQGVRIGROODUVLQOHJDODQG office building that had sat vacant Sciences to develop sustainable de- for at least two years, Ilumisys will sign and manufacturing strategies KHDOWKFDUHIHHV8QOLNHDFRUSRUDWHDFFRXQWZLWK7KH'HVLJQDWH take over about 27,000 square feet for LED-based lighting. ZKLFKFRVWVOHVVWKDQDIHZURXQGVZLWK\RXUFOLHQW and move in its R&D team and sev- Last October, the Michigan Solid- en employees. State Lighting Association was Altair will use some of the build- formed to promote the use of LED

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Page 16 CRAIN’S DETROIT BUSINESS September 20, 2010

BUSINESS DIARY ACQUISITIONS voltaics, has signed a deal to install a MOVES PowerTilt solar roof system at the EQ The Environmental Quality Co., , a purchasing services com- Daimler Truck and Bus North America DSSI LLC 800-292-3831 Wayne, acquired a hazardous-waste pany, from 26261 Evergreen Road to 40 bus factory, Mississauga, Ontario. facility from A Clean Environment, Oak Hollow St., Suite 225, Southfield. indiantrails.com Tulsa, Okla. The facility has been re- McGraw Wentworth, Troy, a group Telephone: (248) 208-8366. named EQ Oklahoma. benefit consulting and brokerage firm, has been retained by Vector Cooper Standard Automotive, Novi, CANtech Inc., Novi, to manage health NEW PRODUCTS has completed an agreement to sell its care benefits, employee communica- Federal-Mogul Corp., Southfield, an- thermostat business to Caltherm tions and compliance for employees nounced the availability of its two- Corp., Columbus, Ind., a manufacturer and retirees. McGraw Wentworth also piece oil ring design for direct-injec- of flow-control devices. has been retained by automotive sup- tion gasoline engines. The ring ONE HU G ND Dearborn Sausage Co. Inc., Dearborn, plier NSK Americas, Ann Arbor, to IN R reduces oil consumption and friction. T E A D and Thanasi Foods LLC, Boulder, manage health care benefits for em- R Y Website: www.federalmogul.com. B E E A Colo., have formed Macomb Smoked ployees and retirees. L R

E Stardock, Plymouth, independent S

C Meats LLC as a joint venture to pur- 100 Walbridge Brasfield and Gorrie, De- game developer and publisher, re- chase and manage the American troit, a joint venture of Detroit-based leased the PC fantasy strategy titled Foods Co. Inc. beef jerky and smoked Walbridge Aldinger Co. and Birming- “Elemental: War of Magic.” Website: sausage production facility, Macomb ham, Ala.-based Brasfield and Gorrie www.elementalgame.com. Township. LLC, received a $40.6 million contract Maynards Industries Inc., Southfield, a from the U.S. Naval Facilities Engi- NEW SERVICES liquidation, auction and appraisal neering Command, Washington, D.C., company, acquired the Twinsburg, to build an exchange center and park- McKenna Associates, Northville, Ohio, Stamping Plant from Chrysler ing deck in Bethesda, Md. a community planning firm, has Group LLC, Auburn Hills. Schonsheck Inc., Wixom, was awarded launched a municipal wireless infor- three design-build construction con- mation, review and expertise program CONTRACTS tracts. The firm will design and build to provide communities with techni- out the new InTouch Credit Union office cal advice on wireless issues. Tele- Group eX LLC, Royal Oak, an advertis- service center in Auburn Hills. It also phone: (888) 226-4326. Website: ing and marketing communications was awarded the design-build contract www.mcka.com. consortium, has added Royal Oak- for the 14,142-square-foot classroom ad- based Blochead Creative LLC, a brand- Flame Heating Cooling and Electrical, dition for Lutheran High South in Warren, now offers 24-hour emer- ing and marketing company, to its ros- Frenchtown Township. Schonsheck ter. gency service, seven days a week. also will design and build the expan- Telephone: (888) 234-2340. Comfort and Ingenex Digital Marketing, Ann Arbor, sion and renovations to Bill Snethkamp has been selected to design, develop Dodge auto dealership facilities in Washtenaw Literacy, Ann Arbor, a and launch a new website for Cranbrook Lansing. Telephone: (248) 669-8800. nonprofit organization devoted to end- t
$IBSUFST Institute of Science, Bloomfield Hills. Website: www.schonsheck.com. ing adult illiteracy, launched a web- Luxury OnSite ERT, Ann Arbor, sold a system site designed to better support the for tracking and monitoring personnel EXPANSIONS agency’s growing outreach efforts. t
5PVST and equipment at emergency events to Telephone: (734) 879-1320. Website: Domino’s Pizza, Ann Arbor, has www.washtenawliteracy.org. the Okeechobee County Fire and Res- opened its first franchise store in t
4IVUUMFT
cue Department, Okeechobee, Fla. 00 Bucharest, Romania, with the Radaci- OTHER Advanced Photonix, an Ann Arbor- ni Group. Website: www.dominos.com. $100 OFF t
$POWFOUJPO
4FSWJDFT SAVE based optical electronics manufactur- Dynamic Advisory Solutions, Troy, a fi- Inforum, Detroit, a network for er, has sold a T-Ray 4000 to the Center nancial management company, opened professional women, and Sphere t
$PSQPSBUF
&WFOUT for Research and Restoration of the a new office at 2020 Hogback Road, Trending, Waterford Township, a Contact Indian Trails for details. Must use this Museums of France, at the Louvre in Suite 10, Ann Arbor. Telephone: (734) consulting and forecasting firm, joint- promotional code at time of booking: CDB52sep Paris, for performing investigations 975-2385. Website: www.daspc.com. ly released “The New Mom,” the sec- t
4DIFEVMFE
4FSWJDF into art conservation and restoration ond installment of its four-part Frimo Inc., a division of the Frimo using terahertz technology. Group, Wixom, a provider of manufac- “Women in 2010” series of reports that United Solar, Rochester Hills, a manu- turing systems for high-quality plastic explore trends affecting women in the facturer of building rooftop photo- components, announced it is opening second decade of the 21st century. a new tech center within its North Telephone: (877) 633-3500. Website: American headquarters. www.inforummichigan.org. TK Holdings Inc., the North American subsidiary of Takata Corp., Auburn DIARY GUIDELINES Hills, launched construction of an 18,500-square-foot expansion to house Send news releases for Business enhanced automotive safety testing. Diary to Departments, Crain’s Atco Industries Inc., Sterling Heights, Detroit Business, 1155 Gratiot an automotive services provider, has Ave., Detroit, MI 48207-2997 or broken ground on a 180,000-square- send e-mail to cdbdepartments@ foot headquarters, expanding Atco’s crain.com. Use any Business Diary footprint to almost 400,000 square feet. item as a model for your release, EmploymentGroup, Battle Creek, and look for the appropriate a staffing and outsourced-services firm, category. Without complete has opened an office at 3075 E. Grand information, your item will not run. River Ave., Howell. Telephone: Photos are welcome, but we cannot (517) 552-0475. Website: www. guarantee they will be used. employmentgroup.com.

UM-Dearborn and Crain’s Detroit Business present Sustainability in Manufacturing Join us as we explore sustainable business practices, trends, best practices and possible pitfalls in the industry. Growth Capital. Financial Wisdom.® Trevor F. Lauer Breakfast and Discussion The current economic climate DTE Energy October 6, 2010 isn’t easy for entrepreneurs; but the 7:30 a.m.–10:00 a.m. Hennessey Capital team is committed to Paul M. Murray Herman Miller Fairlane Center North using our growth capital and financial Our Panelists Quad E wisdom to help businesses create positive Jean Redfield 19000 Hubbard Drive cash flow, despite challenging times. NextEnergy Dearborn, MI 48126 Let us put the Hennessey Factor Ann Marie Sastry, Ph. D. $35 per person to work for your company. Sakti3

Moderated by: Mary Kramer, 248.658.1100 Publisher of Crain’s Detroit Business HennesseyCap.com For more info or to register online, visit umd.umich.edu/sustainability_lecture DBpageAD.qxd 8/18/2010 4:56 PM Page 1

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Huntington Free Business Checking is limited to 200 transactions and $5,000 in-branch cash deposits per month, then excess transaction and cash deposit transaction fees apply. A “transaction” is any combination of checks paid, deposit tickets, deposited checks and ACH credits and debits. Award claim based on 2009 Business Banking Study. All excellence award selections were based on studies conducted by Greenwich Associates, a leading worldwide strategic consulting and research firm specializing in fi nancial services. Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia and Western PA. Source: U.S. SBA from October 1, 2007, through June 30, 2010. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.TM is a service mark of Huntington Bancshares Incorporated. ©2010 Huntington Bancshares Incorporated. 20100920-NEWS--0018-NAT-CCI-CD_-- 9/16/2010 3:58 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS September 20, 2010

PEOPLE coffee!! FINANCE SERVICES IN THE SPOTLIGHT Wendy Reedy to Paul Griffler to vice president of Birmingham-based Munder Capital principal, Clay- sales, Avanti Press Inc., Detroit, from opportunity!! Management, a money- ton & McKervey senior vice president of national management firm servicing PC, Southfield, sales, Recycled Paper Greetings, Re- individual and institutional from partner, ston, Va. interested?? investors, has named Edward Grant Thornton Goard to the new position of chief LLP, Detroit. SUPPLIERS investment Thomas Wiggins John Howaniec to president of PLM officer of the to senior manag- franchise?? Solutions, Tata Technologies, Novi, firm’s fixed- er, Rehmann Fi- Reedy income group. nancial Group from senior vice president America sales operations, MSC Software, Goard, 45, LLC, Troy, from manager. Cincinnati and Santa Ana, Calif. had been co- Donald Precour Contact us at chief to senior vice investment president of PEOPLE GUIDELINES (517) 913-1987 or officer. He mortgage sales, [email protected] joined Munder Fifth Third Bank, Announcements are limited to in 2007. Southfield, from management positions. Nonprofit He earned a state sales man- and industry group board Goard bachelor of ager, PNC Bank, appointments can be found at science degree in international Royal Oak. www.crainsdetroit.com. Send www.biggby.com finance from San Francisco State submissions to Departments, University. HEALTH CARE Crain’s Detroit Business, 1155 Precour Matt Walsh to vice Gratiot Ave., Detroit, MI 48207- ENERGY president of opera- 2997, or send e-mail to tions, Henry Ford Physician Network, [email protected]. Amiee Andrzejewski to director of hu- Detroit, from associate vice president Releases must contain the person’s man resources, Danotek Motion of purchaser initiatives, Health Al- name, new title, company, city in Technologies Inc., Canton Township, liance Plan, Detroit. which the person will work, former from vice president of human re- title, former company (if not sources, Grant Technical Services LAW promoted from within) and former LLC, Utica. Daniel Cherrin to director of market- city in which the person worked. Jennifer Baird to CEO, Accio Energy, ing, Fraser Trebilcock Davis & Dunlap Photos are welcome, but we cannot Ann Arbor, from president and CEO, PC, Detroit, from communications di- guarantee they will be used. Accuri Cytometers Inc., Ann Arbor. rector for the city of Detroit. 20100920-NEWS--0019-NAT-CCI-CD_-- 9/16/2010 3:53 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 19

CALENDAR

TUESDAY Meeting of the Detroit Economic Club. Studies, Detroit. $50 each (includes Inner Circle. 5:30-7:30 p.m. Oct. 5. Info- toms manager, General Motors Cana- 11:30 a.m.-1:30 p.m. Sept. 29. With: pre-party, afterglow and one-year sub- rum Center for Leadership and da; Brigit Matthiesen, special affairs SEPT. 21 Rodney O’Neal, president and CEO, scription to Crain’s Detroit Business), Crain’s Detroit Business. Honoring the adviser to the president for U.S. af- Delphi Corp. Townsend Hotel, Birm- $45 afterglow only. Contact: (313) 446- 2010 Crain’s Women to Watch hon- fairs, Canadian Manufacturers and . 9-11 a.m. IBS Doing Business in Ghana ingham. $45 members, $55 guests of 0300; e-mail: [email protected]; orees: Barbara Byrd-Bennett, chief Exporters Association; others. Dear- Global Consulting. With: , Lee Green members, $75 nonmembers. Contact: website: www.crainsdetroit.com. For academic and accountability auditor, born Inn. $1,995, registration at senior executive director, African (313) 963-8547; e-mail: info@econclub. sponsorship opportunities, contact Detroit Public Schools; Carol Goss, www.automotivelogisticsglobal.com/ Business Chamber of Commerce USA. org; website: www.econclub.org. Marla Downs at (313) 446-6052 or CEO, Skillman Foundation; others. 6/Registration; website: Columbia Center, Troy. Free. Contact: [email protected]. Townsend Hotel, Birmingham. Info- www.automotivelogisticsglobal.com. (248) 581-0140 ext. 721; e-mail: rum members $55, nonmembers $65. Crain’s 2010 Detroit House Party. 5:30- [email protected]; Contact: (877) 633-3500; website: 10:30 p.m. Sept. 29. Crain’s Detroit website: www.ibsglobalconsulting. Industry Coffee: Finance, Legal, HR & www.inforummichigan.org. Making Health Care Reform Work for com. Business; and MSHDA. Meet Detroit Accounting. 7:30-9 a.m. Oct. 1. Detroit Americans. 11:30 a.m.-1:30 p.m. Oct. 5. boosters and residents in one of 26 in- Regional Chamber. Networking Detroit Economic Club. With: Scott timate cocktail parties at Detroit’s Automotive Logistics Global 2010: De- for those in finance, legal, human re- Serota, president and CEO, Blue finest historic homes, lofts, condo- livering Flexible and Efficient Supply WEDNESDAY Cross Blue Shield Association. Cobo miniums and apartments. Then con- sources and accounting. Collaborative Chains. Oct. 4-6. Numerous work- Center, Detroit. $45 members, $55 SEPT. 22 vene at the College for Creative Stud- Group, Birmingham. Free to members shops, panels and speakers, including ies’ A. Alfred Taubman Center for the Business Builder and above. Contact: John Taylor, Wayne State University guests, $75 nonmembers. Contact: Detroit Regional Chamber Member- afterglow, cocktails, a strolling taste (313) 596-0479; e-mail: malabast@ associate professor of supply chain (313) 963-8547; e-mail: ship Maximizer. 5:30-7:30 p.m. An fare from 15 area restaurateurs and detroitchamber.com; website: management and director of supply [email protected]; website: informational session on the cham- Design in Detroit. College for Creative www.detroitchamber.com. chain programs; Paul Wetherup, cus- www.econclub.org. ber’s services, programs and benefits. Display Group, Detroit. Free for mem- bers Basic level and above. Contact: (866) 627-5463; website: www. detroitchamber.com.

Relationship Marketing through Inter- active and Social Promotion. 9-11 a.m. 3D3@G 0CA7<3AA 6/A / Lunch Ann Arbor Marketing. With: — Ryan Schram, senior vice president, AB=@GB3::CAG=C@A ePrize. Conor O’Neill’s, Ann Arbor. Suggested donation $3, lunch dis- µ;g ROR 8]V\ O\R VWa P`]bVS` 5O`g `O\ bVS counted to $10 for LA2M. Contact: PcaW\Saa eVS\ 7 eOa U`]eW\U c^ 7¸[ 8]V\ 8` 7 (734) 272-4698; e-mail: [email protected]; website: www.la2m.org. e]`YSR bVS`S ]\ eSSYS\Ra 7 Y\Se bVS PcaW\Saa e]cZR PS [W\S ]\S ROg O\R bVOb ROg Wa VS`S 7 Mexican Transportation and Logistics. 8:30 a.m.-4:30 p.m. World Trade Center \SSROZ]b]TVSZ^b`O\aWbW]\W\UbVSQ][^O\g/\R Detroit/Windsor Association. Learn the policies and procedures for ship- [OYW\U ac`S Wb¸a abWZZ ab`]\U eVS\ 7 ^Oaa Wb OZ]\U ping general commodity freight into b] [g a]\ 8]V\ 777¶ and out of Mexico. WTCDW, Allen Park. $350. Contact: (313) 388-2345, ext. 222; e-mail: [email protected]; web- site: www.wtcdw.com.

Crain’s Michigan Business-Bay Area. Noon-2 p.m. Crain’s Detroit Business. Topic: Michigan’s New Silicon Valley. With: Mary Lou Benecke, vice presi- dent of public affairs and corporate communications, Dow Corning Corp. Northwood University, Midland. $50, $45 each for groups of 10 or more, $60 at the door. Contact: (313) 446-0300; e- mail: [email protected]; website: www.crainsdetroit.com. For sponsor- ship opportunities, contact Marla Downs at (313) 446-6052 or [email protected]. THURSDAY SEPT. 23 NAWBO Greater Detroit 2010 Procure- ment Expo and General Motors Ride & Drive. 9 a.m.-2 p.m. Interact with in- dustry procurement executives, learn how to do business with large corpora- tions, hear from a panel of GM’s top fe- male executives, join a VIP reception with senior-level decision-makers, and test drive new GM vehicles to earn the GM employee discount. The MET Inn, Troy. $50 members, $60 non- members. Contact: (313) 961-4748; web- site: www.nawbogdc.org.

COMING EVENTS Renewables and Energy Efficiency Roadshow. 1-6 p.m. Sept. 28. German American Chamber of Commerce of the Midwest; others. To facilitate business partnerships between two of /b 4WTbV BVW`R 0O\Y SdS`g PcaW\Saa PO\YW\U `SZObW]\aVW^ PSUW\a the world’s leading countries in renewable energy and efficiency eWbV O Q]\dS`aObW]\ EVS`S g]c R] []ab ]T bVS bOZYW\U O\R eS technologies. NextEnergy, Detroit. $65 GACCoM members, $75 nonmembers. ZWabS\BVS\]\QSeSc\RS`abO\Rg]c`PcaW\SaaO\Rg]c`\SSRa Contact: (312) 644-2662; e-mail: eS USb b] e]`Y /\R Oa eS PcWZR g]c` ¿\O\QWOZ a]ZcbW]\a eS [email protected]; website:www. gaccom.org/roadshow. [OYSac`Sb]YSS^g]cW\d]ZdSR0SQOcaSacQQSaaW\PcaW\SaaWa `O`SZgOQVWSdSROZ]\S Health Care Reform Breakfast. 8-10 a.m. Sept. 28. Detroit Regional Cham- ber. Learn about the new federal :Sb¸aVOdSOQ]\dS`aObW]\Ab]^W\g]c`Z]QOZ4WTbVBVW`R0O\Y health care reform legislation. Detroit Regional Chamber headquarters. $10 QOZZcaOb&%%&" '%]`dWaWb#!Q][ members, $25 nonmembers. Contact: (866) 627-5463; website: www. detroitchamber.com. 4WTbVBVW`R0O\Y;S[PS`4271 20100920-NEWS--0020-NAT-CCI-CD_-- 9/16/2010 7:07 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS September 20, 2010 Park West, art registry CAREER MOVES choose to go back to court MANAGEMENT MANAGEMENT NON-PROFIT Board of Directors Vice-President and Secretary BY CHAD HALCOM the Park West at Sea subsidiary com- Bradford Academy, a public school of CRAIN’S DETROIT BUSINESS pany manages aboard cruise ships. to the Board of Regents of choice (charter school), is seeking Eastern Michigan University Neither side will appeal a The Zatkoff jury in April award- Director of Marketing and Recruitment interested applicants for appointment on Job 000738 the Board of Directors. Interested parties ed no damages to Park West in 12 Eastern Michigan University, a judge’s ruling that scrapped a should send a resume no later than claims and none in six of the seven metropolitan university serving over 20,000 Designs leading-edge marketing strategies that $500,000 jury verdict against Park students, seeks an experienced build knowledge, preference, utilization of all college September 30th to: West Galleries Inc. in favor of an counterclaims Fine Art Registry professional to serve as Vice-President facilities. Master’s Degree required; MBA desired. Bradford Academy and the other defendants had filed and Secretary to the Board of Regents of Six years professional experience in a significant ATTN: President Wilson Arizona art registry service, opt- Eastern Michigan University marketing management role required. Days/hours ing instead to await a new trial. against the dealer. But it awarded may vary; some travel. 24216 Garner St This position plans, coordinates and Southfield, MI. 48034 The Southfield art dealer and $500,000 against Park West on a facilitates the work of the Board of Regents For notice and online application, visit single count of violations of the of Eastern Michigan University to enable it www.Macomb.edu /Jobs Phoenix-based Global Fine Art Reg- Apply by 10-4-2010 istry LLC both had until last week to federal Lanham Act governing to effectively govern the University. EEO EMPLOYER appeal U.S. District Judge several aspects of trademark law. The Vice-President and Secretary provides leadership, counsel, facilitation and Michigan Relay Center 1.800.649.3777 Lawrence Zatkoff’s August order, Zatkoff last month denied Park administration of the Board’s meetings, (Voice and TDD) which threw out the verdict in fa- West’s request for a new judgment programs, communication and initiatives. in its favor as a matter of law, but he This individual oversees all operations and vor of Global Fine Art Registry staffing of the Board office, serves as a Call Us For Personalized and ordered a new trial. granted a new trial on claims except liaison between the Board and the Service: (313) 446-6068 Park West attorney Rodger for those regarding Hochman. President and the President’s Cabinet. Young, partner at Southfield-based The judge in his 53-page ruling The Vice-President and Secretary reports FAX: (313) 446-1757 directly to the Board of Regents, is a E-MAIL: [email protected] Young and Susser PC, briefly appealed cited “the sheer volume and nature member of the President’s Cabinet, and a portion of Zatkoff’s ruling that had of… prejudicial statements, ques- works in close concert with the President INTERNET: tions and answers” expressed by at- of the University. The Vice-President and www.crainsdetroit.com/section/classifieds preserved a small portion of the Secretary functions at the discretion of the April jury verdict pertaining to torneys and witnesses for Global Board of Regents. See Bruce Hochman, owner of Califor- Fine Art. Those included more than To learn more about the required Crainsdetroit.com/Section/Classifieds nia-based The Salvador Dali Art Gallery. 20 references to media reports, oth- qualifications for this position and EMU, as for more classified advertisements er lawsuits, reports of a criminal in- well as to apply for the position online, go But he said Thursday he expects to to: http://www.emich.edu/jobs/ Please withdraw that appeal, since the vestigation and other matters Za- reference Job Posting #: APBR1101 and dealer has settled with Hochman. tkoff ruled inadmissible. include a cover letter, a detailed resume outlining qualifications and related Young said he expects a new tri- A multi-district prospective work experience, and contact al on the dispute with Global Fine class-action lawsuit against Park information for at least three professional references. Materials that Art could begin early next year. West, a couple of the cruise compa- are faxed, E-mailed or sent by U. S. mail In a 2008 suit over online reports nies and other defendants awaits will NOT be considered. by the Phoenix registry, Park West trial at a federal court in Seattle and EMU is an Equal Opportunity, Affirmative had sought $46 million in damages combines buyers’ claims from Action Employer and Educator that is strongly committed to achieving excellence against the registry, CEO Teresa Michigan, Florida and Washington through cultural diversity. The University Franks and a contract writer. state. Also pending is a case in Oak- actively encourages applications from women, persons of color, and applicants Those articles focused mainly on land County Circuit Court filed by with disabilities, veterans, and members of buyers alleging fraud and viola- art buyers against Park West. other under represented groups. tions of several states’ consumer Chad Halcom: (313) 446-6796, protection laws in art auctions that [email protected] Call or email today for information on a custom advertising plan! [email protected] Finance Experience 313.446.6068 In Your Corner. MARKET PLACE ANNOUNCEMENTS & FINANCIAL SERVICES SERVICES FINANCIAL ADVISOR TRAINEE HEALTH & FITNESS Are you looking for a career change? Are you an educator, accountant, attorney, or banking professional with an entrepreneurial spirit? Do you enjoy working with customers? Get active and interactive at If so, please submit your resume for an invitation to attend an information session and learn about a career as a Merrill Lynch Financial Advisor Trainee. To apply, and view all of our job openings, please visit our website at aHealthierMichigan.org www.bankofamerica.com. Fall Career Night Schedule: SECURITY SERVICES September 28th, 2010 - Dearborn, MI Office - 5:30-7:00 p.m. Fairlane Plaza North, Suite 1100 Honeywell Authorized 290 Town Center Dr. Integrator Dearborn, MI 48126 313-594-9217 CARD ACCESS For an invitation, email: [email protected] VIDEO SURVEILLANCE SECURITY SYSTEMS October 13th, 2010 - Bloomfield Hills, MI Office - Luncheon- 11:00- 1:00 p.m. NETWORK INTEGRATION (Joint event for the Auburn Hills & Bloomfield Hills offices) 734-421-0077 Bloom-Wood Center www.securitydesigns.com 39577 Woodward Ave. Bloomfield Hills, MI 48304 248-645-7479 Call Us For Personalized For an invitation, email: [email protected] Michael Romaya Service: (313) 446-6068 October 20th, 2010 - Farmington Hills Office - 5:30-7:00 p.m. [email protected] Tri Atria Bldg., Suite 260 CLOSING TIMES: Monday 3 p.m., 32255 Northwestern Hwy. one week prior to publication date. Please call us for holiday closing times. Farmington Hills, MI 48334 248-737-6322 FAX: (313) 446-1757 For an invitation, email: [email protected] E-MAIL: [email protected] INTERNET: www.crainsdetroit.com/section/classifieds Confidential Reply Boxes Available PAYMENT: All classified ads must be prepaid. Checks, money order or Crain’s credit approval accepted. 866-4VARNUM www.varnumlaw.com Credit cards accepted. I Novi I Grand Rapids I Kalamazoo I Grand Haven I Lansing See Crainsdetroit.com/Section/Classifieds for more classified advertisements 20100920-NEWS--0021-NAT-CCI-CD_-- 9/17/2010 5:45 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 21 Wrapping: Insurers raise rates over employers’ cost-cutting plan ■ From Page 1 more on insurance premiums per in Beverly Hills, Calif. policy of $1,000, Blue Cross as- employee, with an estimated half WRAPPING A HEALTH CARE PLAN Jon Clement, vice president of sumes there will be reduced uti- of their employees spending less finance of Health Alliance Plan, said lization of 5 percent. “That doesn’t than $1,000 on medical costs, High-deductible health plans were in Beverly Hills, Calif.: employers have tried to wrap high materialize with a wrapped policy. created as a way to lower employer Add a health reimbursement Krause said. deductible plans to save money for It is more like 1 percent to 2 per- costs by making employees more account, health savings account or “You are transferring a lot of responsible for health care costs flexible spending plan that is 100 more than 20 years. cent,” he said. money to the in- through deductibles of up to $5,000. percent funded by an employer or “It doesn’t work,” Clement said. Selinsky said he understands surance compa- In a “wrapped” plan, employers jointly funded with the employee. “It is insurance company arbi- health insurers’ concerns about ny with little re- subsidize those costs. Here are Purchase gap insurance to cover trage. You split (risk) in two and unnecessary utilization. turn of benefit,” some of the ways to wrap a plan to fit the deductible amount. hope one of two parties saves mon- “If structured correctly and he said. “It with a high-deductible health care Fund employee deductible costs ey.” partnered with a strong wellness makes sense to plan, according to Dick Chelten, and hire a third-party administrator Clement said HAP decided five program and a lot of consumer ed- have higher de- president of Chelten Benefits Group to manage the claims. years ago to price its high-de- ucation on how to use the plan, the ductibles to dri- ductible plans to assume a higher wrap concept may work very well ve down premi- to help pay for additional mandat- of health care reform, and the utilization rate that would accom- and assist employers in keeping um costs and ed benefits under the reform bill, health insurers are working modate employer decisions to down costs.” then wrap a re- Selinsky said. against this,” said Dick Chelten, wrap their plans. Jay Greene: (313) 446-0325, Krause imbursement “Gap policies will be a big part president of Chelten Benefits Group Dunn said on a high-deductible [email protected] plan to cover the expenses of those in your company that do have higher expenses and need it.” Krause said insurers that charge more for wrapping poli- cies do a “disservice to the em- REAL ESTATE ployer.” Wrapping refers to when em- ANNOUNCEMENTS COMMERCIAL PROPERTIES WATERFRONT PROPERTY ployers increase their health plan deductible, which lowers premium Attention MOBILE HOME PARK -- MONROE COUNTY costs, and then reimburse employ- ON LAKE HURON Commercial Property Owners & ONE-OF-A-KIND ees for all, or a part, of their health (22) lots plus single fam rental home/laundry Open House Sunday expenses falling under the in- REO Managers bldg/paved roads. Good overhead lighting/all Sept. 26th 3:00-5:00 MATURE TENANTS. Gross $89,838. NET creased deductible. (See box Budget Time is here… CASH FLOW after expenses $62,474 prior to 4208 Gratiot Ave., Port Huron, MI 48060 above.) debt service. Owner of 30 yrs retiring. $650,000 $1,595,000 2010 Year-End Reconciliation less $150,000 Dn on L.C. by owner. This differs from the original 2011 New Budget Year Prep concept of high-deductible plans, DEAL DIRECT 734-673-7780 Elegance & Distinction on Gratiot Beach in Port 2010 Escalation True-up Huron. Experience the Extraordinary with spec- in which employees were responsi- or 734-675-8911 2011 Escalation Estimmates tacular architectural styling! 5 bedrooms, 5½ bathrooms, spectacular kitchen & a 3rd floor ble for deductibles of up to $5,000, observatory with Panoramic View of Lake Huron! Guest quarters, finished recreation room, — — — game room & 2nd kitchen. (5756sq.ft. plus 1782sq.ft. in lower level) Handsomely treed 75x300 but typically $1,000-$2,500, and so INDUSTRIAL PROPERTY had a financial incentive to elimi- Nationally trained 30-year lot. Boulder enhanced patio with attractive walkway to the beach. Commercial Real Estate veteran nate unnecessary care and seek INDUSTRIAL SPACE AVAILABLE JoAnn Wine, JoAnn Wine & Assoc. Inc. available on contract basis to assist 1-810-985-5080 or 810-650-3190 lower-cost, higher-quality treat- IN MACOMB TWP. ments. John Dunn, vice president with budget preparation and www.joannwine.com of middle- and small-group sales escalation billings. ** INCREDIBLE RATES ** for Blue Cross, said Blue Cross — — — HIGH-TECH OFFICE/INDUSTRIAL data shows that there is a 4 percent MI Commercial Real Estate LLC New development Finish to suit INDUSTRIAL PROPERTY MISCELLANEOUS to 8 percent difference in utiliza- Michael J. Irwin 2,860sf, 3,483sf & combine up to tion and expenses between those Licensed Real Estate Broker 10,449sf Apartment/Condo Development Wanted ———————————————— plans that are wrapped and those 313-770-3224 70,700sf CORPORATE IMAGE 110 to 525 units. Tri-county area. that are not. [email protected] Truck wells, crane footings, full AC Utilities metered. If numbers work, ———————————————— Rail - Easily Accessible - Low Rates He said Blue Cross in January Available: On-site Mgmt - Exterior Storage cash buyer waiting! will start charging employers that 55,700sf WITH HEAVY POWER 83,719 SF www.waretechindustrialpark.com Truck wells, crane footings CATELLUS GROUP, LLC Bill McMachen, [email protected] wrap between 4 percent and 8 per- ———————————————— 43,000 SF (810) 695-7700 586-915-4441 cent more to account for the ex- INVESTMENT PROPERTY ALSO BUILD TO SUIT AND pected higher utilization. INDUSTRIAL LAND AVAILABLE The move is partly an equity FLAT ROOF PROBLEMS? AVAILABLE NOW OFFICE BUILDING measure, Dunn said, because it is- Maintenance free 20 yr. guaranteed n’t fair to employers who don’t standing seam metal roof. No tear off FOR SALE necessary! Can go over almost any 4,000 to 100,000 sq. ft. wrap because they are “cross-sub- existing roof. All types of repairs. 45000 HELM STREET sidizing the groups that wrap and Solar electric roofing. PHONE 586-677-1111 Also 10,000 & 25,000 sq. ft. are creating inequity in the mar- 888-799-6918 www.quadratedevelopment.com Free Standing Bldgs w/truckwells. ketplace.” 1 Mile from Metro Airport Don Whitford, vice president of AUCTIONS sales with Priority Health, said the health plan earlier this year began REA CONSTRUCTION charging higher rates — 12 percent (734) 946-8730 to 18 percent more — for compa- nies that wrap their high-de- Also Heavy Industrial ductible health plans. Ironically, the federal Account- Land Available 258,000 SF IN METRO WEST, PLYMOUTH, MI able Care Act of 2010 suggests that www.reaconstruction.net SECURE YOUR CORPORATE HEADQUARTERS employers help fund employee’s WELL BELOW REPLACEMENT COST deductibles, up to a certain level, For more information: DENNIS GRIFFIN [email protected] OFFICE SPACE 248.353.5400

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Page 22 CRAIN’S DETROIT BUSINESS September 20, 2010 Ford House: Tour app gets attention ■ From Page 1 as visitors who walk the grounds come to the estate’s pool, they can look to the hand-held device to see Historical houses really have home movies of Edsel and “ Eleanor’s children splashing in to look at their business. No the pool or Eleanor sitting in the gardens. longer do visitors just want pretty The application also enables vis- itors to customize their visit to the rooms with red velvet ropes. Grosse Pointe estate with maps to ” navigate through the points of in- Kathleen Mullins, Ford House terest. “Historical houses really have family footage the public might galleries include video technology, to look at their business,” said not otherwise be able to see, it al- showcasing, for example, how arti- Ford House President Kathleen lows visitors to create their own facts might have been used by peo- Mullins. “No longer do visitors tour, Blanton said. ple of the time. just want pretty rooms with red Incorporating interactive tech- DIA visitors can also listen to an velvet ropes. nology into tours “is almost a pre- audio tour of exhibits — telling “With this technology, the visi- requisite for museums to have any “secrets” about the artwork or tor controls the experience” and hope of reaching younger audi- artist, said senior interpretive spe- can better relate to what they are ences,” he said. cialist Swarupa Anila. seeing, Mullins said. Similarly, most of the exhibits The DIA also offers a multime- Ford House, which is operating coming through the Detroit Science dia tour application for hand-held on a $5 million budget this year Center include an audio tour, as Nokia PDAs to allow visitors to spun from an $80 million endow- did the “Accidental Mummies of Diego Rivera’s “Detroit Industry” ment left by Eleanor Ford, invest- Guanajuato” national exhibit last mural to listen to commentary and ed $75,000 to develop the applica- year, said Kelly Fulford, vice presi- view photos and historical video tion with Boston-based Audissey dent of sales and marketing for the of Rivera working on the mural in Media. Motor Cities National Heritage center. the early 1930s, she said. Area awarded a $25,000 grant to the The “Leonardo da Vinci: Man, The DIA plans to transition the project, and another third of its Inventor, Genius” exhibition the application to an iPad by the end cost came from the house’s first science center hosted in fall 2008 of January, Anila said, and it is foray into fundraising, the Commu- offered both a video and audio tour looking at how it could use tech- nity Foundation for Southeast Michi- via an MP3 player, Fulford said. nology to let visitors plan their gan’s online arts challenge last But those tours are specific to that visit. year. exhibit. “We’re paying a lot of attention The new application also puts The same is true with much of to how our colleagues are using Ford House within reach of remote the technology that the Detroit Insti- technology to customize for their visitors and educators. tute of Arts included in its gallery institution.” Ford House recently aligned the reinstallations when it reopened Sherri Welch: (313) 446-1694, content in the new application the museum in fall 2007. About 10 [email protected] with K-12 curriculums for all 50 states, making it available to teachers to fit into their lesson plans. The new application has been downloaded for free from Apple’s online iTunes store by people worldwide over 800 times since its launch six weeks ago. Ford House had been hoping for 50 down- loads from iTunes the first year, “and in six weeks we’re at 800,” said Ann Fitzpatrick, vice president of communica- Fitzpatrick tions. “Our users are not just those who come through the gate … this technology has allowed us to ex- pand our (outreach) globally,” Metro Cars will handle all your transportation needs Mullins said. The New York Times recently re- From 1 to 56 passenger vehicles available ported the Ford House application as one of three new and free appli- cations developed for a specific arts institution and available on Metro Cars is the official and exclusive provider of sedan iTunes, alongside applications for service for the Detroit Metro Airport the Musee du Louvre in France and the Brooklyn Museum. Ford House’s application puts the museum in the company of other museum technology pio- neers, including J. Paul Getty Muse- um in Los Angeles, Los Angeles Mu- seum of the Holocaust, San Francisco Museum of Modern Art, Museum of Modern Art in New York and Muse- Metro Cars Powered by Propane um of Natural History in New York, said Dewey Blanton, director of strategic communications for the Washington, D.C.-based American Association of Museums. Not only does the application 800-456-1701 provide a forum for archived Ford 20100920-NEWS--0023-NAT-CCI-CD_-- 9/17/2010 6:21 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 23 HMOs: Income reported up in first half of 2010 Michigan Radio ■ From Page 3 Health Plans, said Medicaid HMO en- to air program rollment has increased about HMO NET INCOME 12 percent over the past 12 months. Net income for selected plans in Southeast Michigan for the first six months of 2010, compared with the same “You would expect to see growth period in 2009: by co-author of in premium income with the ex- Net income penses to lag depending on actual HMO 1Q/2Q 2010 1Q/2Q 2009 % change utilization by the new members,” Freakonomics Murdock said. Aetna Inc.* $12,500 $27,947 (55.2%) Blue Care Network* $28.7 million $19.5 million 47.2% “On the commercial side, over- The pop culture-meets-eco- all growth has been more in the BlueCaid of Michigan** $345,956 $89,987 284.5% nomics wry insight of cheating PPO market than HMOs,” Mur- Fidelis SecureCare*** $477,818 $543,928 (12.2%) sumo wrestlers and monkeys dock said. “We are still seeing net Great Lakes Health Plan** $112,669 $2.3 million (95.1%) using money is coming to a ra- income below 2 percent in most in- Health Alliance Plan* $10.9 million $10.5 million 3.8% dio near you. stances.” HealthPlus of Michigan** $3.9 million $2.7 million 44.4% Ann Arbor-based Michigan Blue Care Network, the health Health Plan of Michigan** $4.8 million $4.8 million 0% Radio this fall will carry plan subsidiary of Blue Cross Blue Midwest Health Plan** $4.0 million $2.8 million 42.9% Freakonomics Radio, a new bi- Shield of Michigan, posted a 47.2 per- Molina Healthcare** $2.1 million $2.8 million (25%) weekly broadcast by Stephen cent net income increase to OmniCare Health Plan** $1.2 million ($352,992) 440% Dubner, co-author of the best- $28.7 million. BlueCaid of Michigan, selling Freakonomics and Su- Priority Health* $53,108 $5.5 million (99%) the Blues’ Medicaid plan, in- perFreakonomics. Priority Health government** $3.9 million $3.8 million 2.6% creased net income 284.5 percent to The show will tackle eco- $345,956 during that same period. Pro Care Health Plan** $4,773 ($78,920) 106% nomic issues in the same Because of unexpected claims Total Health Care** $1.7 million $901,154 88.6% unique style as the books and last year, Priority Health, which also Total $62.2 million $55.8 million 11.2% Dubner’s New York Times operates a commercial/Medicare *Commercial, Medicare; **Medicaid; ***Medicare Freakonomics blog. plan and a Medicaid plan, saw its Source: Michigan Office of Financial and Insurance Regulation The show will air during the net income drop 99 percent for its Marketplace program, which commercial plan to $53,108 from more than in 2009. Community Health because of rate- $293.4 million. But its general ad- is on at 6:30 p.m. weekdays. $5.5 million for the same period in In 2009, total HMO enrollment setting errors and Medicaid pro- ministrative expenses doubled to The Freakonomics radio 2009. increased 4.5 percent to 2.5 mil- gram overspending. Last year, the $56 million from $28 million, one show will also include pod- Greg Hawkins, Priority’s CFO, lion. However, commercial enroll- state cut Medicaid HMO rates factor that cut into its earnings for casts, Web and live event pro- said the company’s $3.8 million in ment dipped 5 percent to 1.3 mil- 8 percent. the six-month period. gramming. The show will be- underwriting lion. Medicaid enrollment “I would predict net income for On the other hand, Omni Care come weekly in 2011. losses for the increased 14 percent to 1.2 million, Medicaid may be flat at the end of Health Plan, a Detroit-based Medic- Freakonomics co-author first six months 2010 Michigan according to the the year based on this trend,” Mur- aid HMO owned by Coventry Health Steven Levitt will be an occa- of 2010 were pri- Health Market Review, a report by dock said. Care, increased net income 440 per- sional guest on the podcasts. marily due to Allan Baumgarten, a Minneapolis- For example, Great Lakes Health cent to $1.2 million this year after Both authors will continue the unexpected based consultant. Plan, a Southfield-based Medicaid posting a loss of $352,992 for the Times blog, as well. claims expenses From a financial standpoint, HMO owned by United Healthcare, same period in 2009. New York Public Radio and “incurred but Baumgarten said, commercial and reported net income of $112,669 in Total Health Care, a Detroit-based Minneapolis-based American not reported” Medicaid HMOs are doing better in the first six months of 2010, a Medicaid HMO, also had a big first Public Media are producing the from the fourth Michigan than in most other states. 95.1 percent drop from $2.3 million six months by increasing net in- show. quarter of 2009. In 2009, HMOs in metropolitan net income it posted for the same come 88.6 percent to $1.7 million Hawkins Michigan Radio is the Univer- Priority also Detroit earned $195.7 million in period in 2009. from $901,154 for the same period sity of Michigan’s public radio posted $900,000 less in investment net income for an average 2 per- In the first six months of 2010, in 2009. service. income than the same period in cent profit margin, he said. Those Great Lakes increased revenue Jay Greene: (313) 446-0325, last year. numbers are down slightly from a 32 percent to $388.7 million from [email protected] — Bill Shea “For the most part, this was a 2.6 percent margin in 2008, he said. one-time adjustment related to Michigan’s Medicaid HMOs 2009,” Hawkins said. posted underwriting net income of On the other hand, revenue in- $97.4 million in 2009, slightly lower The Legacy of Leadership creased 25 percent to $810.4 million than $101.3 million in 2008. Under- from $648.9 million, mostly due to writing income does not include Priority adding 27,000 Medicare investment income, income tax or managed care members this year, other expenses. Hawkins said. Priority has about However, Michigan’s 14 Medic- 45,000 Medicare Advantage mem- aid HMOs are dealing this fall with NTINUES. bers. a 2.4 percent payment cut, which Overall, Priority had 480,000 will amount to about $50 million SM members at the end of the second less in revenue. The cuts were or- quarter this year, about 100,000 dered by the state Department of Jim Hilmer joins Comerica Securities to lead its Public Finance Group. Jazz up this year’s With over 21 years of financial industry experience, Jim Hilmer has joined the investment holiday party! banking team at Comerica Securities as Senior Managing Director of the Public Finance Group. As Senior Managing Director, Jim will head the Public Finance group, whose products include public and private offerings of general obligation bonds, private activity bonds, and revenue Our cultural places offer creative bonds nationally. spaces for your next event. Call today to discover (and help support) Jim began his career at Comerica Securities and served as the head of the Bond Advisory our region’s treasured cultural gems Group of W. Y. Campbell & Company for the past 15 years. through our one-stop service. His extensive experience and industry knowledge are valuable assets as Comerica Securities maintains its industry leadership position. the cultural Jim Hilmer7&ORT3Ts$ETROIT -)s concierge a program of the cultural alliance of southeastern michigan, Comerica Securities, Inc. a 501(c)(3) organization Member FINRA/SIPC

Find out more! www.theculturalconcierge.org Securities products and services are offered through Comerica Securities, Inc., which is a broker/dealer, federally Registered Investment Advisor, subsidiary of Comerica Bank and member FINRA/SIPC. Securities products are not insured by the FDIC or any government agency; are not deposits or other obligations of or 248.766.5599 [email protected] guaranteed by Comerica Bank or any of its affiliates; and are subject to investment risks, including possible loss of the principal invested. 20100920-NEWS--0024-NAT-CCI-CD_-- 9/17/2010 5:48 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS September 20, 2010

YOU WORK HARD EVERY DAY. Inkster: Development falls together WORK SMARTER BY THE MINUTE. ■ From Page 3 process, the city of Inkster urged Brownfield Redevelopment Au- him to include a retail component UNDER CONSTRUCTION thority because they are being in the project, a move to bolster built on the vacant Rosenau Honda The Lansing-based Boji Group’s Learn real-world business business development on Michi- original one-building project in dealership site. gan Avenue. 2008 has grown to a four-building The police and court building is strategies for success. Streamline With no tenants lined up, it was development spanning two city then using $8.5 million in Build your accounting systems, risky. blocks with three office buildings America Bonds, a program created generate more sales and learn “But, I thought, we’ll fill it,” Boji and a retail building. It includes: as a stimulus for construction in said. which the federal government sub- how to Facebook the right way. Later, the YWCA approached Michigan Department of Human sidizes 35 percent of the interest on Services district office him about finding a new building the bonds. Watch Business Education Minute Ⅲ 32,100 square feet for its Inkster operation — which The Detroit office of Jones Lang online today, a joint partnership of is next to the east side of the DHS Ⅲ Expected completion: Oct. 1 LaSalle represented DHS in the Crain’s Detroit Business site. Ⅲ Retaining 80 jobs in Inkster and lease, and the Southfield office of “It was a great idea, but there adding 49 jobs. CB Richard Ellis represented the sec- Multimedia Services and EMU. was no way they could come up YWCA of Western Wayne County retary of state. Farmington Hills- with the money for the building,” GAV & Assoc. – Dean David Mielke Ⅲ 12,500 square feet based is the architect, College of Business he said. and Boji Development Inc. is the con- Also looking for space at the Ⅲ Expected completion: March 2011 struction manager. time was the city’s court and po- Inkster City Manager Ann lice department. Ⅲ New building allows the group to expand its Head Start program. Capela said the project required crainsdetroit.com/emu In the development deal that some heavy lifting by the city as was pulled together, the police and Inkster Justice Center: Police well as Wayne County’s economic court agreed to leave their current department and 22nd District development team, which secured facility across town, then renovate Court the NSP money. the YWCA building for the new of- Ⅲ 45,000 square feet Capela said the collective effort fices. Ⅲ Expected completion: March of the city and Wayne County was The YWCA then sold its land 2012 driven by the need to build up and building to the police for Ⅲ Taking the existing YWCA Michigan Avenue and restore $875,000 and received a $750,000 building. business to a vacant patch of the grant. It expects to fill the shortfall city. Retail center on the $2.3 million building with a “Michigan Avenue is the first capital campaign, with Boji Ⅲ 6,700 square feet thing a visitor sees when they Big Beaver Area Office Suites For Lease fronting it the money in the mean- Ⅲ Expected completion: 2011 WELL BELOW BIG BEAVER OFFICE RENTAL RATES!!! come to Inkster,” she said. time. Ⅲ Fully leased to the Michigan “That had to be our focus. And Boji said he was then able to put Secretary of State and a local what we have now is a catalyst the secretary of state into the re- restaurant owner. for new development in Inkster tail space by pointing out the state partment of Housing and Urban De- and a bright spot on Michigan Av- can save money by being next to velopment. enue.” the DHS building to use the state’s The two projects also received Daniel Duggan: (313) 446-0414, network infrastructure. $1.2 million through Michigan’s [email protected] With the critical mass of offices, Boji found a restaurateur to sign a lease for the rest of the retail. Private funding has been arranged by Farmington Hills- KIRTS OFFICE PARK - EAST KIRTS OFFICE PARK - WEST based Level One Bank, but the pro- 800-830 Kirts, Troy, MI 1172-1282 Kirts, Troy, MI ject is heavily supported by public incentives. Suites From 2,229 to 15,523 SF Suites From 1,199 to 30,000 SF The DHS project and the YWCA • 8 Single Story Buildings For More Information, Please Call: are receiving $850,000 and • Building Signage Available 248.324.2000 $750,000, respectively, in grants • Easy Access to I-75/Big Beaver Corridor through the Neighborhood Stabi- • Conveniently Located in the Heart of Troy lization Program of the U.S. De- • Ample and Convenient Parking www.friedmanrealestate.com IT company bases new subsidiary in Rochester Hills (9,@6</,(+: Atlanta-based American CyberSys- Helping build your tems Inc., an information-technolo- ()6=,;/,9,:;& gy services company with more than $100 million in annual sales, business - one has spun off a new subsidiary, Hire- (WSH`LYZULLKLK Genics Inc., and is basing it in Rochester Hills. 0UX\PYLVUSPUL The subsidiary provides payroll, block at a time. workplace compliance and other workforce management services with about 1,000 contract employ- ees and 100 direct employees across the U.S., 10 of them in Michigan. HireGenics President Barry Ol- son was founder of Troy-based Chimes Inc., which subsequently operated as a part of Computer Hori- Check out the new How can we assist? zons Corp. before its sales in early P: 248.539.9900 2007. fosterswift.com E: [email protected] Joining him at HireGenics as ex- ecutive vice president, sales and MARKETING ‡ PR ‡ DESIGN ‡ NEW MEDIA marketing is Charles Halash, a for- identitypr.com/careers mer senior vice president at Chimes. Lansing | Farmington Hills | Grand Rapids | Detroit | Marquette | Holland — Sherri Welch 20100920-NEWS--0025-NAT-CCI-CD_-- 9/17/2010 6:23 PM Page 1

September 20, 2010 CRAIN’S DETROIT BUSINESS Page 25 Tom Gores: Pistons bidder has ties to Michigan www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or point of a Mark Cuban, the brashly profile considerably. said, noting that Gores wasn’t in- [email protected] Long-haul owner? EXECUTIVE EDITOR Cindy Goodaker, (313) 446- outspoken (and often-fined) owner “I’ve been a little worried about volved in the bidding that led to 0460 or [email protected] of the Dallas Mavericks. it. At the end of the day, I like do- Gores is a young-looking 46. He the recent $450 million sale of the MANAGING EDITOR Andy Chapelle, (313) 446- “I’m not looking to be a Mark ing the things that I do, taking care wears jeans with hip shirts and NBA’s Golden State Warriors. 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette Cuban. Let’s say active, but not of my own family and the Plat- jackets. He coaches his kids’ soc- Because the league is negotiat- Smith, (313) 446-1622 or [email protected] that active,” Gores said during a inum family,” Gores said. cer teams. He has his own website, ing a new collective bargaining ENTREPRENEURSHIP EDITOR Michelle Darwish TomGores.com. He’s on Facebook. Welsh, (313) 446-1621 or [email protected] telephone interview with Crain’s. agreement with its players, specu- COPY DESK CHIEF Gary Piatek, (313) 446-0357 So, just who is Tom Gores, and He Twitters, mostly about Plat- lation is that Gores may be inter- or [email protected] how did he get so rich? Delphi bid inum’s deals, but there’s a Tim ested in getting into the league ASSISTANT NEWS EDITOR Jeff Johnston, (313) Allen quote in there, too. 446-1608 or [email protected] The easiest answer is he’s a Gores probably is best known lo- now because he thinks the new la- DATA EDITOR Anne Marks, (313) 446-0418 or global private-equity baron esti- cally for a failed bid to buy bank- Far younger than the city’s oth- bor deal will benefit owners — al- [email protected] mated by Forbes to be the 147th- rupt Delphi. er team owners, Gores is believed most immediately driving up the WEB EDITOR Christine Lasek, (313) 446-0473, to be interested in the Pistons for [email protected] richest American with a $2.2 bil- Platinum spent three years value of the franchise. WEB DEVELOPER Steve Williams, (313) 446- the long term. 6059, [email protected] lion fortune built by shrewd deal working on the $3.6 billion deal Forbes values the franchise to- The Pistons probably are not a EDITORIAL SUPPORT Robertta Reiff (313) 446- making, which combined with with the federal government and day at $479 million. 0419, YahNica Crawford, (313) 446-0329 buy-fix-operate-sell prospect for deep Michigan roots has him inter- General Motors Co. to buy the dis- Under the current five-year deal NEWSROOM (313) 446-0329, FAX (313) 446- Gores, said Scott Reilly, president 1687 TIP LINE (313) 446-6766 ested in the local National Basket- tressed former GM parts unit. that expires in June, players get 57 ball Association franchise and its and chief investment officer of REPORTERS But lenders objected because percent of basketball-related rev- Auburn Hills-based management Peninsula Capital Partners LLC, a De- Daniel Duggan: Covers retail, real estate and they believed the company’s assets enue in salaries and benefits. That hospitality. (313) 446-0414 or company, Palace Sports & Entertain- troit-based private-equity firm were being undervalued — an was about $2.1 billion last year. [email protected] ment. with $1.2 billion under manage- The owners, who claimed a col- Jay Greene: Covers health care, insurance and the 11th-hour epiphany after looking ment in five funds. environment. (313) 446-0325 or Israeli-born Gores, whose fami- lective $370 million loss last year, [email protected]. closely at Gores’ bid. “There’s not an extensive histo- ly immigrated to Flint when he are expected to drive that percent- Chad Halcom: Covers law, non-automotive Delphi, which filed for bank- ry of PE guys using their managed manufacturing, defense contracting and Oakland was a toddler in 1968, graduated age down under the threat of a and Macomb counties. (313) 446-6796 or ruptcy in October 2005, eventually funds to buy sports teams,” he [email protected]. with a construction management lockout for the 2011-12 season. said. “In the relatively short hori- Tom Henderson: Covers banking, finance, degree from Michigan State Universi- was bought in October 2009 by GM technology and biotechnology. (313) 446-0337 or ty in 1986. He is chairman and CEO and creditors led by private-equity zon of a private-equity owner, typi- [email protected]. cally five years, that’s far shorter Nancy Kaffer: Covers small business, the city of of Beverly Hills, Calif.-based pri- firms Elliott Management Corp. in Michigan roots Detroit, Wayne County government. (313) 446- New York City and Greenwich, than most leagues want their own- 0412 or [email protected]. vate-equity investment firm Plat- Gores’ Michigan roots run deep. inum Equity LLC. Conn.-based Silver Point Capital LP. ers looking at.” Bill Shea: Covers media, advertising and Born in Nazareth, Israel, to marketing, entertainment, the business of sports, The company reported about “It was a big disappointment for Instead, Gores probably views it and transportation. (313) 446-1626 or a Lebanese mother and a Greek [email protected]. $11 billion in revenue last year as both an investment and some- me. We put our heart and soul into father who owned a construction Nathan Skid: Multimedia reporter. Also covers the from its portfolio of 30 companies, thing he enjoys — which is some- food industry. (313) 446-1654, [email protected]. it for about three years,” Gores company, Gores was raised many of which were troubled or in thing of a burgeoning trend among Sherri Begin Welch: Covers nonprofits and said. “(But) I sleep better at night a Christian and grew up working services. (313) 446-1694 or [email protected] distressed sectors when Platinum the newly rich created by private knowing we were a very positive in a Flint supermarket run by Dustin Walsh: Covers auto suppliers, steel, higher inserted its turnaround teams to equity, Reilly said. education and Livingston and Washtenaw influence on the situation. We Tom Joubran, who immigrated counties. (313) 446-6042 or [email protected] boost profitability. “There’s this whole crop of rela- woke (the creditors) up and they to Michigan in 1950 and helped LANSING BUREAU Since Gores launched it in 1995, tively newly minted high million- said, ‘Geez, we should have been the Gores family move here in Amy Lane: Covers business issues at the Capitol, Platinum has done about 100 deals aires or billionaires,” he said. telecommunications and utilities. (517) 371- the owner.’ ” 1968. 5355, FAX (517) 371-2492, [email protected]. or in 22 countries. Over the past five “You can make a lot of money on 115 W. Allegan, Suite 220, Lansing 48933. Gores is not only unafraid of the Gores maintains a home on years, the firm has averaged $8 bil- vanity purchases. There’s a trend ADVERTISING troubled auto industry, he’s will- Grosse Ile and spends part of the lion to $12 billion annually in rev- toward this hybrid corporate- year there. ADVERTISING DIRECTOR Marla Downs, (313) enue. ing to invest in daily newspapers, slash-personal ownership.” 446-6032 or [email protected] He remains high on Michigan SALES INQUIRIES: (313) 446-6052; FAX (313) Platinum, which has about 125 a sector plagued by plummeting One pro sports insider, who is for more than just his past. While 393-0997 employees and regional offices in advertising revenue that’s led to familiar with the situation and ADVERTISING SALES Christine Galasso, Matthew Boston, New York and London, bankruptcies and closures. agreed to speak only on condition unsuccessful in the Delphi bid, he J. Langan, Lori Tournay Liggett, Tamara Rokowski, did buy Cadillac-based recreation- Kimberly Ronan, Cheryl Rothe, Dale Smolinski looks at an average of 1,200 poten- Platinum bought the San Diego of anonymity, said Gores won’t CLASSIFIED SALES (313)-446-0351 al powerboat manufacturer Four tial deals annually and completes Union-Tribune for a reported buy the Pistons as a vanity play. MARKETING MANAGER Irma Clark maybe a dozen. Some are acquisi- $30 million from Copley Press in “If he doesn’t think he’s getting Winns LLC, which Gores picked up MULTIMEDIA MANAGER Alan Baker, (313) 446- a deal, he’s not buying. He looks at in January as part of a $70 million 0416 or [email protected] tions and some are divestitures. May 2009. EVENTS MANAGER Nicole LaPointe deal for the assets of bankrupt Most are successes. “We’re very happy with it,” he sports like he looks at anything MARKETING ARTIST Sylvia Kolaski “His reputation is stellar. He’s a said. “It’s been better than even ex- else, as a value proposition” the Minneapolis-based Genmar Hold- SALES SUPPORT Suzanne Janik, YahNica Crawford ings Inc. CIRCULATION Candice Yopp, Manager. tremendous tal- pected, maybe much better.” source said. Gores echoed those words. In February, the Michigan Eco- MARKETING COORDINATOR Kim Winkler ent and tremen- And the Pistons aren’t Gores’ PRODUCTION MANAGER Wendy Kobylarz “I think it needs to be a fair deal. nomic Growth Authority approved an dous operative. first pro sports bid. Platinum PRODUCTION SUPERVISOR Larry Williams We would not do any vanity play,” eight-year, $27.1 million state tax He’s an old-fash- signed a nonbinding agreement in CUSTOMER SERVICE he said. “If you overpay, you’re not credit to Platinum to aid in its in- ioned, hands-on October 2008 with the Arena Foot- MAIN NUMBER: Call (877) 824-9374 or write operator,” said going to have the right structure to vestment in Four Winns. Plans are [email protected] ball League to invest $100 million to be good to the customers. You have to add more than 2,000 new jobs at SUBSCRIPTIONS $59 one year, $98 two years. Sam Valenti III, buy 40 percent of the league, but Out of state, $79 one year, $138 for two years. chairman and to leave yourself room to invest to Four Winns in that time. Outside U.S.A., add $48 per year to out-of-state the firm pulled out when the due- rate for surface mail. Call (313) 446-0450 or CEO of Bloom- be good to the employees, the cus- He also owns Troy-based Acu- (877) 824-9374. diligence process revealed heavier field Hills-based tomers.” ment Global Technologies, a metal SINGLE COPIES: (877) 824-9374. than expected operating losses. REPRINTS: (800) 290-5460, ext. 125; (717) 505- Valenti Capital Little Caesar Enterprises Inc. co- fastener manufacturer Platinum 9701, ext. 125; or ashley.zander@theygsgroup Valenti Management. The AFL later suspended its founder Mike Ilitch, who owns the bought in 2006 for $630 million .com. 2009 season to reorganize and re- TO FIND A DATE A STORY WAS PUBLISHED: New York City-based Mergers & Detroit Tigers and Red Wings, has said from Textron Inc. (313) 446-0367 or e-mail [email protected]. Acquisitions Journal magazine turned this year as a scaled-down he wants to buy the team, and there “I grew up (in Michigan). I love league. are believed to be two groups of oth- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY had Gores on its cover in April as living in L.A.; but at the heart of it, CRAIN COMMUNICATIONS INC. its “Pro of the Year” for 2009. “They needed to consolidate the er investors interested in the team. I’m a Michigan man at the end of CHAIRMAN Keith E. Crain league. It wasn’t, at the end of the “I don’t think there are too the day,” he said. PRESIDENT Rance Crain While known now mainly in fi- SECRETARY Merrilee Crain nancial circles, becoming an NBA day, stable enough (for Plat- many other bidders here. It might Bill Shea: (313) 446-1626, TREASURER Mary Kay Crain inum),” he said. just be him and Ilitch,” the source [email protected] Executive Vice President/Operations owner would elevate Gores’ public William A. Morrow Group Vice President/Technology, Manufacturing, Circulation Robert C. Adams Vice President/Production & Manufacturing Dave Kamis Chief Information Officer Paul Dalpiaz Chrysler HQ: Investors buy $225M loan for $60M Corporate Circulation/Audience Development Director ■ From Page 3 Kathy Henry G.D. Crain Jr. Founder (1885-1973) The $60 million investment is to the Chrysler deal, said loan deals that they get a loan at a sometimes vestment firm also bought the Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: be repaid by Chrysler’s mortgage are typically structured where the deep discount and can either make building for $325 million, accord- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 payments over two years; the re- selling lender is willing to offer a a profit if the loan is paid off or end ing to past Crain’s reports. That Cable address: TWX 248-221-5122 AUTNEW DET maining payments are profit. discount as a way to speed the up with ownership of the real es- loan was later refinanced with Cit- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 The building continues to be process of cutting ties with a com- tate if the loan goes bad. igroup, which held it until the re- is published weekly, except for a special issue the third week of January, a special issue the fourth owned by Chrysler. There have pany or its real estate. Chrysler originally financed the cent sale. week of August, and no issue the third week of December by Crain Communications Inc. at 1155 been some loan sales in the area “Lenders have been making the $1 billion project itself when con- Michael Palese, of Chrysler’s Gratiot Ave., Detroit MI 48207-2732. Periodicals recently with more expected in the internal decision, for one reason struction started in 1990, then corporate communications office, postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to near future, said Steve Sallen, or another, that it is better to speed transferred ownership to a trust, confirmed the loan was sold, but CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- president of Southfield-based up the process and sell the note in leasing the building from the trust. “we do not know the ownership 9732. GST # 136760444. Printed in U.S.A. Maddin, Hauser, Wartell, Roth & order to achieve their goals,” When Cerberus Capital Manage- structure of the new lender.” Entire contents copyright 2010 by Crain Communications Inc. All rights reserved. Heller PC. Sallen said. ment LP took 80 percent ownership Daniel Duggan: (313) 446-0414, Reproduction or use of editorial content in any Sallen, who is not familiar with The upside to buyers, he said, is of Chrysler in August 2007, the in- [email protected] manner without permission is strictly prohibited. 20100920-NEWS--0026-NAT-CCI-CD_-- 9/17/2010 6:17 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 20, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 11-17

for the first time in 12 nanced by donations, cash a new contract, AP report- years, following the rocky GDLS wins and a tax-exempt bond is- ed. The board of regents is product launch of its latest sue, is expected to cost $65 expected to vote on the pro- Spark CEO software game, “Elemental: million. posed contract Tuesday. War of Magic,” CEO Brad $68.3 million Ⅲ Southfield-based Ⅲ Peter Karmanos Jr., co- Wardell has confirmed. TechTeam Global Inc. has founder and CEO of De- In an online forum post to amended its agreement troit-based software firm quiet about Elemental’s website, contract with Jacobs Engineering Compuware Corp., said he Wardell said poor initial Group Inc., lowering the pro- hopes to sell part of the Car- sales and critical reviews of terling Heights- posed sale price of olina Hurricanes and find the turn-based fantasy based General Dynam- TechTeam Government Solu- new partners this fall or by strategy game had derailed S ics Land Systems has tions Inc. to $43 million from early winter. MEDC talk plans for future game devel- received a $68.3 million $59 million. TechTeam’s Karmanos is believed to opment. fixed-fee contract for engi- stockholders are to vote on be seeking to sell at least ichael Finney’s started in April 2009 and ex- “Elemental’s revenue neering studies to identify the sale Sept. 28. the 49 percent stake that name has come up pires next March 31. was anticipated to provide improvements and main- Ⅲ The Hilton Garden Inn in had belonged to former M as a potential Snyder or Bernero might the revenue both for our tain readiness on its fleet of Novi has been placed under partner Thomas Thewes, choice of Michigan’s guber- recommend a candidate, main games team’s next Abrams main battle tanks. contract to be sold by Etkin who died in September natorial candidates to tap as but it’s up to the MEDC’s project as well as a second The U.S. Army Tacom Life White Novi LLC for $16.2 mil- 2008. the next state economic-de- executive committee to team. Unfortunately, that is Cycle Management Command lion to a Richmond, Va.- Ⅲ The Oakland County velopment make the hire. unlikely to happen, so in Warren awarded the sys- based real estate invest- Emerging Sectors program chief. we’ve had to start laying tems technical support con- ment subsidiary of Apple reported six deals in Au- But the Humor breaks out at forum people off,” Wardell wrote. tract to GDLS, which will REIT Nine Inc. gust for businesses to add Ann Arbor “You can imagine how complete the work by De- up to 411 local jobs and in- Spark presi- After a long day of listen- much it sucks for all of us to cember 2011 at its Macomb vest a combined $30.6 mil- dent and ing to policy experts, atten- lay off anyone. ... It would County headquarters. GOVERNOR’S RACE lion in targeted high- CEO would- dees at the West Michigan be great if we can bring as Ⅲ According to a poll re- growth industries. That’s n’t make Policy Forum in Grand many of these people back leased last week, Republi- compared with three deals any direct Rapids turned to political (as we can) over time.” ON THE MOVE can gubernatorial candi- to invest less than $5.6 mil- Finney comment to satire, served up by Mo Roc- The company had 60 em- Ⅲ Jennifer Baird, former date Rick Snyder was lion during July. Crain’s ca and P.J. O’Rourke. Rocca ployees, and estimated rev- CEO of Accuri Cytometers, leading Democrat Virg Ⅲ Lester Robinson, former about speculation that he had no Michigan roots to enue was $15.5 million in an Ann Ar- Bernero by 53 percent to 29 CEO of the Wayne County Air- could become head of the speak of, but O’Rourke the fiscal year ended June bor-based percent, with 15 percent un- port Authority, didn’t get the Michigan Economic Develop- could claim the next best 30. Layoffs included a group life sci- decided and the rest sup- job of general manager at ment Corp. thing: a four-generation of developers, designers ences com- porting minority-party can- Atlanta’s Hartsfield-Jackson An annarbor.com article auto heritage in Toledo, and salespeople. pany, has didates. International Airport. The job last week pointed to numer- where his family has sold The CEO attributes Ele- been ap- The poll was conducted went to Louis Miller, for- ous links between Spark Jeeps and General Motors ve- mental’s weak opening to pointed by Lansing-based EPIC- mer executive director and and Republican contender hicles. an insufficient vetting CEO of Ann MRA for the Detroit Free CEO of Tampa International and Ann Arbor business- O’Rourke faulted govern- process to spot code errors Arbor- Press and television sta- Airport. Robinson is report- man Rick Snyder and cited ment regulations, bad man- in the game prior to release, based Accio tions WXYZ-Channel 7, WJRT- edly one of four finalists for speculation about a Finney Baird agement and labor unions and “my own catastrophic Energy, an TV, WOOD-TV and WILX-TV. Miller’s Tampa job. role in the Snyder adminis- for pushing the American poor judgment in not objec- alternative-energy compa- Ⅲ The number of residen- tration. There are also ru- car industry to the abyss tively evaluating the core ny that is developing a new tial real estate sales in mors that the Democratic “since President Carter.” game play components” pri- technology that converts COURT NEWS metro Detroit decreased to candidate, Lansing Mayor The two humorists also or to the Aug. 24 launch. wind energy into electrical 4,221 in August compared Virg Bernero, is interested in Ⅲ Attorney General Mike chastised Grand Rapids for The company last week power without the use of with 4,785 in 2009, according Finney for the post. Cox has filed a lawsuit overstating its name. released an updated version turbines. Dawn White, Ac- to data from the Farmington Snyder helped found Ann against Blue Cross Blue “Surprisingly mild 1.08 of Elemental online. cio’s co-founder and former Hills-based MLS RealComp II Arbor Spark and wrote the Shield of Michigan and the rapids,” maybe, Rocca said. CEO, will be president and Ltd. Overall, the median sale business plan for the orga- Michigan Office of Financial O’Rourke said that after chief technology officer. price was up 16.7 percent to nization, Snyder’s cam- and Insurance Regulation living on the East Coast for BITS & PIECES Ⅲ Daniel McCormick has $70,000 compared with paign says, and it’s a model over a 66 percent premium nearly 40 years, he has con- been hired as interim presi- $60,000 a year ago. Snyder has held up on the Ⅲ Perry Mehta, president increase on some Blues cluded the greatest contri- Brighton Hospital Ⅲ Research spending at campaign trail. and CEO of Detroit-based dent of to customers who purchase bution of the Midwest is the University of Michigan Snyder spokesman Bill FutureNet Group LLC, was replace CEO Denise Bertin- Medigap insurance. “keeping the East Coast and grew during fiscal 2010 by Nowling called the talk “idle awarded the U.S. Small Busi- Epp, who is leaving at the The lawsuit charges that the West Coast apart.” 12 percent over the previ- speculation.” Bernero’s ness Administration’s Small end of the month to take a OFIR violated the Nonprof- ous year to $1.14 billion. camp didn’t respond to Minority Business Person leadership position at Guest it Health Care Corporation questions by press time. Poor video game sales of the Year award for a six- House in Lake Orion, hospi- Reform Act by approving Finney did not return an state region last month. tal officials said. the increase without pro- OBITUARIES e-mail and phone call. lead to Stardock layoffs Mehta received the award McCormick was interim viding 60-day notice. Greg Main, the current Plymouth Township- at the White House during CEO of the Hazelden Founda- Ⅲ Michigan Appeals Ⅲ Henry Dziuba, a long- president and CEO of based Stardock Corp. this the annual Minority Eco- tion, a Minneapolis-based Court Judge Peter O’Connell time professor and former MEDC, has a contract that month laid off employees nomic Development Week. addiction hospital. has issued a 30-page opin- dean at the University of De- ion calling the state’s med- troit School of Dentistry and a ical-marijuana law a com- practicing dentist in Dear- COMPANY NEWS plex maze and urged state born Heights until 1990, Ⅲ PulteGroup Inc. said it officials to set clear rules, died Tuesday. He was 92. has selected Whirlpool Corp. AP reported. Ⅲ Hilda Gage, former as its exclusive appliance chief judge in Oakland supplier, AP reported. Fi- County and later at the nancial terms of the agree- OTHER NEWS Michigan Court of Appeals, BEST FROM THE BLOGS Ⅲ ment were not released. It’s unlikely the state died Sept. 13. She was 71. READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ A123 Systems Inc. cele- Senate will vote this year She was the first woman brated the grand opening of on the enabling legislation to chair the National Con- Finding a sustainable path Safety net needs on the rise its Livonia lithium-ion au- for the $5.3 billion Detroit ference of State Trial tomotive battery plant with River International Crossing, Judges of the American Bar Mega cities — with Nonprofits already a stable of high-profile said Majority Leader Mike Association and the first to populations“ of 10 million facing“ historical levels speakers including Gov. Bishop, R-Rochester. He chair the Michigan Judicial or more — are growing of demand aren't Jennifer Granholm and a blamed the Michigan Depart- Tenure Commission. around the globe and seeing any slackening phone call from President ment of Transportation for Ⅲ Ron Kramer, 75, former cannot handle adding — residents’ requests Barack Obama. not providing lawmakers Detroit Lion and a nine-time for cash and food more private vehicles to Ⅲ Crittenton Hospital Med- with necessary information letter winner in three assistance from the city streets clogged with ical Center in Rochester Hills in the lame-duck session. If sports at the University of cars. state rose again during the second quarter. plans to launch a $20 million there’s no vote, the process Michigan, died Sept. 11. ” capital fundraising cam- would have to begin anew Ⅲ Buster “Buck” Mitchell, ” paign Nov. 7 to build a five- in 2011. owner of Buck’s Barber Publisher Mary Kramer’s behind the scenes Reporter Sherri Begin Welch’s blog story patient tower that it Ⅲ Eastern Michigan Univer- Shops in Dearborn Heights in Detroit business blog can be found about Southeast Michigan nonprofits can be found hopes to open by 2014. The sity faculty members have and Taylor, died Sept. 11. at www.crainsdetroit.com/kramer at www.crainsdetroit.com/welch project, which will be fi- approved by a vote of 265-18 He was 79. anpagead.qxp 9/17/2010 1:18 PM Page 1

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