DETROIT BUSINESS MAIN 09-08-08 A 1 CDB 9/5/2008 6:09 PM Page 1
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www.crainsdetroit.com Vol. 24, No. 36 SEPTEMBER 8 – 14, 2008 $2 a copy; $59 a year
©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved After the plea deal THIS JUST IN Employers Troy development gets OK Developers have re- ceived the go-ahead for a hotel and retail project in may get bill Troy to be built at 5500 New King Court near the corner of Crooks Road and Corporate Drive. Called Troy Plaza, the de- for loans to velopment will include 172 rooms and 17,400 square feet of retail on the site of what is now a vacant build- ing. boost UI fund The developer is South- field-based Tinelle Properties BY AMY LANE L.L.C., which has built re- CAPITOL CORRESPONDENT tail centers and multifami- ly developments in Michi- LANSING – Over the past three years, Michi- gan, Florida and Arizona, gan has borrowed more than $1.6 billion from according to its Web site. the federal government to help pay benefits Tinelle principals Ron As- from its dwindling unemployment insurance mar and Frank Asmar did not REBECCA CO0K fund. return multiple phone Ken Cockrel Jr. gets the support of his wife, Kimberly, and his son, Kyle, during his news conference after Now, outstanding federal loans are likely to Mayor Kwame Kilpatrick accepted a plea deal. calls. trigger higher unemployment taxes on some The developers have not employers, starting in January. indicated how the project A state solvency tax, assessed on employers will be financed. They also whose employee-benefit claims exceed the tax- have not disclosed poten- es they paid, is likely to return in January to tial retail tenants or the help repay interest on the money the state has hospitality company that borrowed from the U.S. Department of Labor. Cockrel to lead, And in January 2010, a federal unemployment will be involved with the hotel project. The Troy City insurance tax paid by all Michigan employers Council gave a preliminary approval for the project on See Unemployment fund, Page 28 Aug. 25. Developers plan a high- end hotel with banquet fa- cilities, according to min- but for how long? utes of city meetings. The project will also include a ESD programs to parking garage and two Staff changes, special election are likely fast-food restaurants. — Daniel Duggan BY ROBERT ANKENY CRAIN’S DETROIT BUSINESS WEB EXTRA train and retain State lottery advertising Detroit City Council President Kenneth Cockrel Jr. has His legacy: Mayor Kwame contract extended some major leadership decisions to make during the two- Kilpatrick’s 80 months in office week transition leading up to his swearing in as mayor of brought notable achievements in Troy advertising agency Detroit on Sept. 19. addition to scandal: young engineers Simons Michelson Zieve Inc. But he doesn’t have an easy task, and his mayoral term ww.crainsdetroit.com/kilpatrick. has received a $17.5 mil- could be only eight months long. BY SHERRI BEGIN lion, one-year extension of That’s because the council most likely will call for spe- CRAIN’S DETROIT BUSINESS its contract with the Michi- cial elections — a primary in February and a general MORE ON MAYOR The Engineering Society of Detroit is talking to gan Bureau of State Lottery. runoff in May — to fill the mayoral vacancy. Key post: a number of local companies about providing The measure, approved Cockrel declined last week to name names as to who Business partial or full college scholarships and work- last week by the State Ad- might be replaced or appointed, because, “I am not the wonders about study programs in exchange for three years of ministrative Board, is the mayor yet. It’s Mayor Kilpatrick until Sept. 18.” George work after graduation. second of three one-year Cockrel, 42, did say he has not yet decided whether he’ll Jackson Jr. Durr Systems Inc., which has had a work- options under the con- run to keep the job. But that seems a foregone conclusion to Page 25. study/scholarship program for a decade, is tract. those closest to the Wayne State University journalism gradu- among them and has agreed to transfer man- The initial term of the ate who served two terms on the Wayne County Commission Reader comments: agement of the program to ESD for a fee and to contract ran from Septem- before becoming the youngest person ever elected to the Reaction to offer it as a template for other companies. ber 2005 through Septem- Detroit City Council in 1997. Kilpatrick the plea, The program is one of several the society ber 2007. The current ex- And if he does, it means he has to do battle in four elec- thoughts on the future. Page 26. plans to announce Wednesday as part of a year- tension brings the contract tions within the next 14 months, since regular elections for Judge Granholm? Hearing sparks long effort to attract and retain technical and total to $70 million through mayor and council are to be held in August and November talk of future judgeship for engineering talent in Michigan. September 2009. next year. governor. Page 27. “Our companies … are telling us there’s a — Amy Lane Some top city executives, those closest to Kilpatrick, On the news: Media mostly huge engineering shortage,” said Darlene See This Just In, Page 2 See Cockrel, Page 25 praised for coverage. Page 27. See ESD, Page 29
New plan would revive There’s a Maize former McLouth mill, and Blue building
NEWSPAPER Page 3 boom, Page 11 DETROIT BUSINESS MAIN 09-08-08 A 2 CDB 9/5/2008 6:06 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS September 8, 2008
gan Ave. in Ypsilanti through the member of the year, emerging Plans call for meeting with 22 com- Meadowbrook’s board as a THIS JUST IN fall of 2013. leader of the year, CEO of the panies in key industries that are nonexecutive chairman and as a Elizabeth Parkinson, managing year and legendary CEO. state business-attraction targets. consultant. His previous title was ■ From Page 1 director of marketing and public — Tom Henderson The trip schedule includes au- executive chairman. relations for Spark, said the loca- tomotive companies Toyota Motor — Jay Greene Plante & Moran opens Mexico tion, known as the Mack and Corp., Nissan Motor Co., Honda Mo- Mack Building, can house five to St. John opens Novi hospital tor Co. and Mazda Motor Corp., auto office in Monterrey 10 startup businesses as tenants Providence Park Hospital in Novi, supplier Aisin Seiki Co. Ltd., and al- Woodward restaurant parent Plante & Moran P.L.L.C., the plus “virtual tenants” who make the first new hospital to open in ternative-energy companies Eurus company files for Chapter 11 use of computers, storage space Energy Holdings Corp. and Automo- Southfield-based accounting and Southeast Michigan in 20 years, or conference rooms without tive Energy Supply Corp. The gover- Detroit-based DW Group L.L.C., consulting firm, has opened an of- opened its doors on Friday. The maintaining staff there. nor also plans to meet with Teru- parent company of The Woodward, fice in Monterrey, Mexico. hospital is owned by St. John Currently the Spark East incu- mo Medical Corp. a medical a restaurant located at 1040 Wood- “The high volume of cross-bor- Health in Warren. bator has obtained funding for its products manufacturer. ward Ave. on the first floor of the der activity between the United “I told the staff to enjoy the qui- Compuware headquarters build- first three years in operation. It et time now because we have a The Sept. 15-20 trip is States and Mexico makes the also has plans for a business ac- Granholm’s sixth overseas in- ing, filed for Chapter 11 bankrupt- opening of this office a natural big ER service, lots of surgery cy protection on Aug. 27. celerator and for networking and and more than 2,000 babies ex- vestment mission and her third move for us,” said managing part- educational programs for entre- visit to Japan. Crain’s first re- According to a petition signed pected per year. We will quickly ner Bill Hermann in a press re- preneurs in Ypsilanti. ported the trip last month. by owner William Cartwright, the fill up,” said Rob Casalou, Provi- lease. The company has worked Shamar Herron, formerly a re- — Amy Lane company owes its three largest dence Park’s president. with clients in Mexico for more search associate at the University of unsecured creditors — the Inter- The 100-bed hospital features a than 15 years. Michigan is manager of Spark East. nal Revenue Service, state Depart- Plante & Moran has more than — Chad Halcom design intended to create a heal- Meadowbrook founder to retire ment of Treasury and Downtown ing environment. The $229 mil- Detroit Woodward L.L.C. $315,000 — 1,600 employees in 17 offices in Merton Segal, founder of South- lion contemporary-designed hos- and claims $0 to $50,000 in assets. Shanghai, Michigan, Ohio and field-based Meadowbrook Insur- Automation Alley hosts gala pital emphasizes natural light Thomas Duncan is listed as DW Illinois. ance Group Inc., has retired from Troy-based Automation Alley, a and is contoured to the grade of Group resident agent according — Tom Henderson the company he started as a start- nonprofit technology-business or- the land, Casalou said. It also has to the Department of Labor and Eco- up local retail agency into a spe- ganization, holds its eighth annual a 60,000-square-foot emergency nomic Growth. cialty risk management insurer Spark East settles on location awards gala this Friday nightat department. DW Group filed for bankruptcy The Spark East incubator to fos- The Henry Ford in Dearborn. Next March, Henry Ford West with nearly $800 million in gross protection less than three years ter new business development in Registration begins at 6 p.m., Bloomfield Hospital will open in written premiums. after the opening of the restau- Ypsilanti will occupy a building followed by dinner, the an- Oakland County. Segal, 79, who will retire on rant in February 2006. starting Dec. 1, following a lease nouncement of awards, then net- — Jay Greene Sept. 30, will continue to serve on — Nathan Skid agreement signed last week. working and entertainment. Reg- Ann Arbor Spark, the nonprofit istration is closed. About 600 economic-development organiza- people are expected to attend. Granholm outlines Japan trip CORRECTION tion that already operates a Award categories are nonprofit Gov. Jennifer Granholm and state Ⅲ A story on Page 10 of the Aug. 25 edition misidentified the CEO of Spark Central incubator in Ann organization of the year, emerg- economic-development chief Jim Air America Logistics Co., who is Vicky Kyriaco-Wilson. Gail Major, Arbor, signed a five-year lease ing technology of the year, tech- Epolito announced the lineup of who was misidentified as CEO, is director of sales and marketing for agreement Tuesday to house nology company of the year, edu- companies they will visit during a the Detroit Riverside Hotel. Spark East at 211-215 W. Michi- cational program of the year, trip to Japan starting Sept. 15.
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September 8, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S New plan to revive McLouth INDEX
a marina and about 35 acres of green Making progress: NY investor involved; up to 500 jobs expected space, according to a Michigan Eco- Dispute between WSU, nomic Development Corp. memo. DMC over a $12 million payment nearly resolved. BY RYAN BEENE since 2003. The project could bring investment of several hundred mil- But the deal never closed, even as Page 6. the MEDC granted the project a $98 CRAIN’S DETROIT BUSINESS 500 jobs. lion dollars if it goes forward, said Mercury emissions: “They’ll get it done,” he said. Richard Barr, partner at Detroit- million tax capture in January 2006. Utilities say cost to cut The long-shuttered former “This one is going to work — too based Honigman Miller Schwartz and The Bloomfield Hills-based devel- output would hit $734 McLouth Steel Products Corp. mill in much money has been invested so Cohn L.L.P. Barr represents Wilkin- oper, Real Estate Interests Group Inc., million; manufacturers Trenton may see backed out as well. REI planned to group fears higher rates. far to walk away.” son in the negotiations. Page 22. new life if efforts Citing confidentiality agreements, Wilkinson, the owner of Detroit invest $25 million in the project. to revive the Brown wouldn’t say how much has Steel Co. L.L.C. who bought the former Reports came out soon after in Blood on the collar: Downriver plant White-collar automotive been invested through paying off McLouth assets out of bankruptcy in June 2006 that Israeli investor Boris jobs at suppliers, continue to make debts and due-diligence costs, but 1996, has had similar plans for the Bannai was interested in making the carmakers are being cut progress. said the sum is in the millions. site fall through in recent years. mill operational. But by October, he by the thousands. Trenton Mayor “We have made more progress on A seemingly promising plan was had backed out of the deal. Page 23. Gerald Brown this project in the last four months making progress in 2004-2006 to “I probably was overly confident, says a New York than we have in the last 40 months,” transform the property into the and I’ve learned not to be that way,” investor is work- said Michael Wilkinson, who owns “Bay Village of Trenton.” Brown said. But, this time, “people ing with the own- Brown the 200-acre site and the mill assets. The project would have included are spending, and money talks.” er to modernize He declined to name the investor. 2,400 residential units, 600,000 Ryan Beene: (313) 446-0315, the facility, which has sat vacant The project would involve a total square feet of commercial and retail, [email protected] State homeland
security to get Eyes for design: Two metro Detroit companies collaborate to make shopping an illuminating own VC fund; experience. Page 24. These organizations appear in this week’s Crain’s Detroit Business:
Agree Realty ...... 13 investors sought American Axle ...... 23 Ann Arbor Railroad ...... 14 Barton Malow Co...... 12 BY CHAD HALCOM Borders Group Inc...... 4 CRAIN’S DETROIT BUSINESS BorgWarner Inc...... 23 Center for Automotive Research . . . 23 Homeland security, a growth industry already Consumers Energy Co...... 22 courted by the state for investment, will soon get Coupled Products L.L.C...... 22 Dana Holding Corp...... 23 its own private and industry-specific venture Delphi Corp...... 23 capital fund in Michigan. Detroit Edison Co...... 22 The Michigan Homeland Security Resource Fund, a Detroit Lovely Cuts ...... 28 venture capital fund formally incorporated in Detroit Medical Center ...... 6 late July, is seeking investors for capital this Detroit Steel Co. L.L.C...... 3 Dionysia Properties L.L.C...... 3 week, and organizers hope to have $5 million by Durr Systems Inc...... 1 year’s end. Engineering Society of Detroit . . . . . 1 “There is a very big need. I think we can estab- Federated Capital Corp...... 14 NATHAN SKID/CRAIN’S DETROIT BUSINESS lish the demand (for capital),” said Stephen Pot- Green Oak Village Place ...... 13 Retailers are renting stalls at $320 a month in the 150,000 square feet dedicated to the Russell Bazaar. Dennis ter, president of Walled Lake- Hartland Towne Square ...... 13 Kefallinos, owner of the building, said about 85 percent of the stalls have been filled. Hartland 23 Retail Development . . 13 based Patriot Services Corp., Hayes Lemmerz International Inc. . . 4 who sits on the fund’s board of HKS Architects Inc...... 12 directors. Illuminating Concepts Inc...... 24 “Since the field (homeland Jaffee, Raitt, Heuer & Weiss P.C. . . 22 JGA Inc...... 24 security) is still relatively Bazaar adds to creative mix Lear Corp...... 23 new, most companies are in Lee & Associates ...... 12 critical stages of development Magician’s Ink ...... 28 — past a proof of concept, usu- Mando America Corp...... 22 ally, but not ready to meet pur- MDEQ ...... 22 at Russell Industrial Center MEDC ...... 6 Potter chase orders or enter into con- Michigan Manufacturers Assoc. . . . 22 tracts. You have to find a way Michigan Unemployment BY NANCY KAFFER The cavernous space has been divided into 150 to fill that gap between a new technology and Insurance Agency ...... 28 CRAIN’S DETROIT BUSINESS stalls, about 85 percent of which have been rent- commercialization.” Plante & Moran P.L.L.C...... 28 Ramco-Gershenson Properties . . . . 13 ed, said building owner Dennis Kefallinos, presi- Potter also sits on the board of the Lansing- When the Russell Bazaar opens this weekend, dent of Dionysia Properties L.L.C. His company Real Estate Interests Group Inc. . . . 3 based Michigan Homeland Security Consortium, a Russell Industrial Center ...... 3 the storied history of the Russell Industrial Center owns the Russell and a large number of proper- nonprofit founded in 2006 to help grow the home- Stardock Corp...... 28 will add a new chapter — and Detroit will get ties around the city, including such well-known University of Michigan ...... 11 land security industry in Michigan though net- more than 100 new retailers. businesses as Niki’s Pizza and Loco Bar & Grill in Walbridge-Aldinger Co...... 12 working, education and assistance connecting Designed in 1915 by legendary Detroit archi- Greektown, the River Park Lofts and the Lafayette Warner Norcross & Judd L.L.P. . . . . 22 Wayne State School of Medicine. . . . 6 tect Albert Kahn, the Russell building started life Lofts. firms with venture capital. as an automotive factory. Stalls go for $320 a month, said Bob Rossbach, a Two of the consortium board members, Potter Most recently, it’s become known as a good senior consultant with Mort Crim Communications and vice president Ray DeWinkle of Grand place to have a studio. More than half the build- Rapids-based The Right Place, also sit on the board Inc., which represents Dionysia. Kefallinos re- BANKRUPTCIES ...... 4 ing’s 130 tenants are artists, and many of the rest portedly purchased the property for $1 million in of the Resource Fund. The fund was a 2007 con- BUSINESS DIARY ...... 18 are architects, designers or other creative pro- 2004. cept by Keith Brophy, former board chairman of CALENDAR ...... 16 fessionals. Now, Rossbach said, the property is assessed the homeland security consortium and a former CLASSIFIED ADS...... 22 The Russell Bazaar occupies a mere 150,000 at $2.4 million. president of business development of Troy-based KEITH CRAIN ...... 8 square feet of the 2.2 million-square-foot industri- Kefallinos said the idea was to create the kind NuSoft Solutions Inc., acquired by New Jersey- LETTERS ...... 8 al complex, with room to expand to more than of marketplace that’s common in Europe. based RCM Technologies Inc. this year. MARY KRAMER...... 9 OPINION ...... 8 triple its current size. “When you think of Europe, you think of old East Grand Rapids-based Acuity Capital Partners PEOPLE ...... 17 Last week, the bazaar was abuzz with activity, towns, with little shops and narrow streets,” said L.P. has been hired as the fund manager. Acuity the drone of power tools and the smell of sawdust RUMBLINGS...... 30 WEEK IN REVIEW ...... 30 signaling work in progress. See Bazaar, Page 28 See Security, Page 29 DETROIT BUSINESS MAIN 09-08-08 A 4 CDB 9/5/2008 5:33 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS September 8, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Borders’ revamped Web site off to slow but hopeful start
BY NANCY KAFFER have hurt the bookseller’s bottom Fassler wrote that Borders’ sec- CRAIN’S DETROIT BUSINESS line, Jones has said — all invest- ond-quarter results suggest the ment with no payoff. But with the cost cuts have enough traction to In book retailing, few develop- site and the stores up and running, offset the sluggish economy, revis- ments were as hotly anticipated the site and the stores have begun ing his estimate of Borders’ 2008 this year as the relaunch of Borders to generate revenue. earnings per share loss from 27 Group Inc.’s e-commerce site. Jones has made commitments to cents to 16 cents and his 12-month Borders.com got off to a slow reducing the company’s costs, and price target from $5.50 to $7.25. start, but executives at the na- according to a report released by At market close Friday, Borders tion’s second-largest bookseller Goldman Sachs analyst Matt stock was trading at $7.48 per say they’ve only begun to tap the site’s retail potential. Fassler following the second-quar- share. For years, the Ann Arbor-based ter conference call, those efforts Nancy Kaffer: (313) 446-0412, bookseller’s online sales had been are starting to pay off. [email protected]. handled by Internet competitor amazon.com (NYSE: AMZN). Bor- ders (NYSE: BGP) had pledged to launch an in-house retail site by the end of the first quarter, May 3. Hayes Lemmerz slows 2Q losses Borders reported $7.4 million in sales from its retail Web site in its BY RYAN BEENE Those efforts have cut exposure second quarter ending Aug. 2. Rev- CRAIN’S DETROIT BUSINESS to U.S. market fluctuations. The enue was $758 million, down from company expects U.S. sales to Shares of Northville-based wheel $812 million. count for 13 percent of its sales in supplier Hayes Lemmerz International “I think the Web site made up its 2008 fiscal year, excluding sales Inc. rallied 16.86 percent before the about 1 percent of revenue,” said from a plant closed in the second markets opened Thursday after the 2008Impact Awards Michael Norris, a senior analyst at quarter, and two other plants it ex- company said it cut its net loss for Maryland-based market-research pects to close by the end of the Recognizing real estate that makes a difference in southeast Michigan its second quarter by nearly half. firm Simba Information. year. In 2004, 45 percent of sales Hayes Lemmerz (Nasdaq: HAYZ) But it’s important to keep the were in the U.S. New construction winner Redevelopment winner Special impact winner opened Thursday at $3.05 per share, numbers in perspective, Norris up from Wednesday’s close of $2.61, The company also has boosted Detroit East Riverfront Detroit Institute of Arts Whitdel Apartments said. “Barnes & Noble Inc., for all the before closing at $2.95. sales in Europe and South Ameri- DETROIT Master Plan Implementation DETROIT infrastructure built into their site, it The supplier posted a net loss of ca during the same period. and Renovation has never been more than 9 percent $47 million or 46 cents per share on “Our single largest customer to- DETROIT of their revenue,” he said. revenue of $563.5 million in its sec- day is based in the U.S., but 79 per- Barnes & Noble (NYSE: BKS), ond quarter ending July 31, com- cent of our business with that cus- Awards luncheon Borders’ chief competitor, is the pared with the same period a year tomer is in other regions,” COO September 18 s 11 am – 1:30 pm country’s largest bookseller. ago when it had a net loss of $87.1 Fred Bentley said in a statement. Oakland Hills CC s $65 The borders.com launch didn’t million or $1.10 per share on rev- The company’s stock ended mar- Registration/details at: www.crewdetroit.org go as smoothly as planned, said enue of $544.1 million. ket trading for the week at $3.06 Borders CEO George Jones in an “Our global footprint is paying per share, up 11 cents a share or Aug. 27 call with investors. dividends,” CEO, President and 3.73 percent. “We planned a soft launch period Presented by Sponsor Chairman Curtis Clawson said in Ryan Beene: (313) 446-0315, for the site to get any kinks or bugs Commercial Real Estate a conference call with analysts. [email protected] Women Detroit out before we began actually mar- keting the site and, frankly, this Advancing the success of women in real estate since 1986 process took us longer than we orig- inally planned,” Jones said. The full-court marketing press STREET TALK didn’t start until the end of July, near the end of Borders’ second THIS WEEK’S STOCK TOTALS: 24 GAINERS, 36 LOSERS, 8 UNCHANGED quarter, Jones said. CDB’S TOP PERFORMERS 9/05 8/29 PERCENT When Borders launches a mar- CLOSE CLOSE CHANGE keting effort, it has a powerful tool 1. Noble International Ltd. $7.56 $6.04 25.08 — its Borders Rewards database. 2. Am. Axle & Mfg. Holdings Inc. 5.95 5.10 16.67 More than 28 million people re- 3. Borders Group Inc. 7.48 6.55 14.20 ceive Borders’ promotional e-mails, 4. Meadowbrook Insurance Group 7.49 6.89 8.71 and Jones said a new feature allows 5. Universal Truckload Services Inc. 26.08 24.13 8.08 readers to click through to the re- 6. Amerigon Inc. 7.73 7.16 7.96 tail site to purchase books recom- 7. Comerica Inc. 30.15 27.93 7.95 mended in the e-mails. 8. Detrex Corp. 7.90 7.50 5.33 Investment in projects like the 9. Lear Corp. 13.62 13.07 4.21 site and Borders’ concept stores 10. Credit Acceptance Corp. 17.43 16.81 3.69 9/05 8/29 PERCENT CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE 1. Rofin-Sinar Technologies Inc. $36.62 $42.34 -13.51 2. Energy Conversion Devices Inc. 66.27 76.55 -13.43 BANKRUPTCIES 3. Agree Realty Corp. 24.93 28.78 -13.38 4. Somanetics Corp. 22.23 24.96 -10.94 The following businesses filed for 5. Valassis Communications Inc. 8.81 9.75 -9.64 Chapter 7 or 11 protection in U.S. Kelly Services Inc. 18.48 20.00 -7.60 Bankruptcy Court in Detroit Aug. 29 - 6. Sept. 4. Under Chapter 11, a company 7. TechTeam Global Inc. 8.24 8.90 -7.42 files for reorganization. Chapter 7 in- 8. Compuware Corp. 10.78 11.58 -6.91 volves total liquidation. 9. BorgWarner Inc. 39.00 41.52 -6.07 Michigan Head and Neck Institute 10. Kaydon Corp. 52.59 55.74 -5.65 P.C., 3665 Eleven Mile Road, Warren, voluntary Chapter 11. Assets: Source: Bloomberg News. From a list of publicly owned companies with headquarters $164,900; liabilities: $165,275. in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading at less than $5 are not included. —Compiled by Bernadine Stallings DBpageAD.qxd 5/8/2008 9:49 AM Page 1
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Blue Care Network of Michigan is a nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association. DETROIT BUSINESS MAIN 09-08-08 A 6 CDB 9/5/2008 4:05 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS September 8, 2008 WSU, DMC dispute nearly resolved MEDC to host event BY JAY GREENE The dispute, which created a cash cri- “in the last couple of months.” for venture capitalists CRAIN’S DETROIT BUSINESS sis at the medical school, has led to 26 lay- The negotiations also include talks offs at the school and another 80 in its about future of the 13 jointly sponsored The 15th annual conference of the National As- Over the past several months, talks to billing department. residency programs at DMC. sociation of Seed and Venture Funds will be held settle a $12 million payment dispute be- “On the double-payment issues, the de- Three years ago, five jointly sponsored Wednesday-Friday at the Detroit Marriott at the tween Detroit Medical Center and Wayne tails are still being worked out, but we programs, including orthopedic surgery Renaissance Center. State University School of Medicine have have reached a compromise position on and family medicine, were terminated at About 300 members, who generally invest in quietly borne fruit. that,” D’Arcy said. “We want to get the DMC and later reaccredited as sole-spon- startup and early stage companies, are expected Steven D’Arcy, money to the doctors.” sored programs by Wayne State. DMC to attend the event, which is hosted by the Michi- chairman of the DMC Over the past several months, D’Arcy also solely sponsors an orthopedic gan Economic Development Corp. board, told Crain’s De- said, the two boards have met to negoti- surgery program. The conference begins with registration at 4 troit Business in an in- ate the dispute with Dan Krichbaum, The 2006 agreement specified that ei- p.m. Wednesday, followed by an opening recep- terview that DMC has COO for Gov. Jennifer Granholm. ther institution may apply to make the tion and remarks by James Epolito, president increased monthly “Dan has helped us work through a lot following residencies sole-sponsored: and CEO of the MEDC. payments to Wayne of commercial issues related to payments emergency medicine, neurology, neuro- Concurrent sessions the next two days will cov- State for Medicaid and for services and interpretations of the surgery, ophthalmology, psychiatry, er such topics as how to grow companies from indigent care services, contracts. Wayne State has been willing anesthesiology and physical medicine seed to positive cash flow; best practices for turn- but did not specify by to compromise, and DMC management as and rehabilitation. ing university researchers into entrepreneurs; how much. D’Arcy well,” D’Arcy said. “Most of these things But only one residency may become the good and bad about finding and funding com- Officials for Wayne have been completely resolved.” sole-sponsored each year, starting July 1, panies outside the big venture markets on the State and DMC declined to provide addi- In mid-July, DMC paid Wayne State with Wayne State and DMC taking turns East and West coasts; investment opportunities in tional financial details of the enhanced $2.7 million to settle some of the unpaid each year. Wayne State, which had the clean tech; how to choose a regional venture capi- payments to Wayne State. Francine Wun- services provided by the medical school’s first turn, has not yet exercised its option. tal fund in which to invest; how states and cities der, Wayne State’s director of corporate University Physician Group. “We are not sure which way we will go can build regional entrepreneurial clusters; re-en- and public affairs, said the medical with the residency programs, but we D’Arcy said contract issues for each of gineering the Great Lakes entrepreneurial econo- school would not comment on the ongo- want to make sure the programs won’t be Wayne State’s 19 faculty practices, or de- my; and how to rescue a failing investment while ing negotiations. a casualty of any other disputes that may partments, need to be addressed one by limiting the loss of capital. Under a 2006 term sheet agreement that one. Each of the practices represents a come up,” D’Arcy said “We want the Speakers include national and state venture expires in 2010, DMC was supposed to pay medical specialty that includes, for exam- young doctors to know they can come to capitalists, including Tim Petersen of Ann Ar- Wayne State $1.6 million per month for ple, internal medicine, surgery and ob- WSU and DMC without being caught up bor-based Aboretum Ventures L.L.C.; Mary Camp- Medicaid and indigent care services pro- stetrics and gynecology. in any future dispute. We know there will bell of Ann Arbor-based EDF Ventures; Dan vided by Wayne State doctors. “We are not withholding the $1 million be disagreements with programs as big But on Feb. 1, DMC notified WSU it per month. Lots of numbers add up to as ours. We want to be insulated to pre- Gilbert, chairman of Livonia-based Quicken would begin to withhold $12 million in an- that, and we have been systematically re- vent that.” Loans Inc.; and Josh Linkner, founder and CEO of nual payments, or about $1 million per solving them one at a time,” he said. D’Arcy said he hopes that sometime Pleasant Ridge-based ePrize L.L.C. month. DMC officials said they were with- “When we agree, DMC resumes the pay- this fall a formal multiyear contract will For more information, or to register ($695 for holding payments over concerns that the ment (for the contract item).” be signed. nonmembers, $545 for members), go to payments might constitute violations of D’Arcy said the money started to flow Jay Greene: (313) 446-0325, www.nasvr.org and click on “register.” federal excessive compensation laws. to some of Wayne State’s practice groups [email protected] — Tom Henderson
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Page 8 CRAIN’S DETROIT BUSINESS September 8, 2008 OPINION Cockrel’s first task: Set proper priorities estoring public confidence in city government. Sound fiscal management that requires a balanced budget R and operations that don’t exceed income. Working closely with the business community and regional leaders who all have a stake in Detroit’s success. Ken Cockrel Jr. will have a full plate when he steps into the mayor’s office later this month. But if he focuses on those three agenda items, Detroit can move beyond the paralyzing scandal that has absorbed the region for nearly eight months. The hardest part will be setting priorities in a short win- dow. It’s likely a special election will occur early next year — ahead of the regular primary and general election in 2009. The good news is that regional, civic and nonprofit leader- ship are eager to see stability restored to Detroit government after the roller coaster of recent months. Cockrel made it clear last week he will consult broadly, from grassroots activists to top CEOs. That’s a start. Meanwhile, the outgoing mayor proved once again that everybody needs an editor. His farewell address to appointees Thursday afternoon showed again his charismatic skills — and his penchant for wanting the last mean word. LETTERS Last Thursday, his victim was Gov. Granholm. In March, during his State of the City address, he attacked his critics and the news media. Union strikes harm Michigan Granholm’s commitment to the administrative hearing on the mayor’s fate certainly accelerated the mayor’s plea deal. But Editor: the company, preserve as many the record is clear: This tragedy was of Kilpatrick’s own making. Crain’s Detroit Business The fact that a union leader jobs as possible, and hopefully welcomes letters to the editor. like Doug Buckler is oblivious to grow again in the future. All letters will be considered for Free trade and global competi- the reasons for the losses of thou- publication, provided they are tion certainly do create stress and ESD works to end ‘brain drain’ sands of jobs to the nonunion signed and do not defame hardship on many people. But South and lower-cost countries is individuals or organizations. The Engineering Society of Detroit is taking a big step by a great example of the problems Letters may be edited for length those problems are not solved by adopting one of its member company’s prescriptions for brain in Michigan (Other Voices: and clarity. making Michigan unattractive to employers. “Right to work is wrong for Write: Editor, Crain’s Detroit drain: Offer experience and scholarships to engineering students It’s true that in the last few Michigan,” Aug. 18). I haven’t met Business, 1155 Gratiot Ave., in exchange for a pledge to work for the sponsor company. years some unions have shown anyone in the manufacturing Detroit, MI 48207-2997. That formula, described on Page 1, has worked for Durr business who doesn’t know that increased knowledge of the eco- E-mail: [email protected] nomic situation and have started Systems Inc. The Plymouth-based company has identified few manufacturing companies to work together with employers high school graduates interested in engineering and helped are willing to invest in a state GM billions of dollars. So is it to save jobs. It may take a long with a history of strikes and mentor and support them in college. About half of the students such a surprise that Volkswagen time to get this message out and threats that have cost employers who entered the program now work for Durr. change our image. But certainly millions of dollars and forced decides to invest elsewhere? ESD hopes to replicate that success after raising $5 million to enacting a right-to-work law them out of business or out of the Unions have had many benefi- support and manage the program for companies interesting in cial aspects. A fundamental prob- would at least send a message that state. Why would anyone invest Michigan is open and receptive to attracting and retaining young technical and engineering talent. lem, though, is that when survival here, create jobs, and then risk new business, investment and and preserving jobs require hard ESD also plans to promote the technical talent base in having their employees shutting jobs. If the governor were serious decisions to reduce costs, union Southeast Michigan nationally and internationally by tapping them down and destroying their about improving the Michigan workers frequently opt to close the marketing expertise in member companies and media part- investments? That is not just our economy, she would be leading image, it happens all the time — plant and lose their jobs. It is very ners such as Crain’s and WWJ 950. this effort. most recently at American Axle costly for businesses to relocate. A Michael Egren This homegrown solution to a nagging problem deserves and General Motors’ Lansing nonunion company has more flex- Auburn Hills broad corporate and foundation support. plant. I recall those strikes cost ibility to make adjustments, save See Letters, Page 9
KEITH CRAIN: Our new mayor will need a good cause At this point, I’m not sure just election. ply a cloud of corruption everyone can quickly understand on the school district in spite of the how long our temporary mayor is I would like to see our whenever anyone is do- and to which they can relate. fact that there is no specific re- temporary. new mayor take on a ing business with the Our city, over the last decade, sponsibility for schools in the may- If the Detroit City Council, at a cause. I would love to see city of Detroit. through compliance and neglect, or’s office. The bully pulpit would cost of some millions of dollars, Ken Cockrel Jr. become Sure, the mayor has a has gained a well-earned reputa- have a profound impact on schools votes to hold a special election, the anti-corruption may- city to run, and that’s a tion of corruption. It simply is dif- along with everything else. then we could have an election ear- or. He should spend most full-time job. But if he ficult and costly to try and do busi- I hope he will consider this to be ly next year for a term of six of his efforts on rooting can stake out a slate of ness with far too many his crusade. He would instantly months. Otherwise, our temporary out any and all corrup- anti-corruption, he’ll departments of the city of Detroit. have the support of the community mayor will be in office until the tion that he can find in have a legacy that will If everyone realized that it’s a and put a very quick face on his ad- normal election next November. city government. last a long time and give new day in Detroit and the new ministration. My best guess is that they, the Detroit has gotten a him the credibility he mayor isn’t going to tolerate any It would have a profound impact Detroit City Council, will skip the reputation recently of be- and all of our city em- form of corruption, it would send a on the business community, and special election and Ken Cockrel ing filled with corruption. From ployees desperately need. signal throughout the community that might just be the most impor- Jr. will be the mayor of Detroit un- Cobo Center to too many depart- The most successful politicians and it would be a beacon of light. tant thing he could do for our city til the next regularly scheduled ments within the city, there is sim- usually pick a single theme that It would have a profound impact in these short months. DETROIT BUSINESS MAIN 09-08-08 A 9 CDB 9/4/2008 5:52 PM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: So what’s next for the city of Detroit? As tragic — and unnecessary — roots groups and “states- date who emerges from munity against business. Council and the school board. as the seven-month Kilpatrick dra- men”-like figures and a special election likely The group would need to recog- This is a great time for a broad- ma has been for Detroit’s image modern heroes? to be called next year. nize that businesses that provide based civic reform movement. and operations, the next act could What if these folks This is a critical time jobs in the city and pay taxes What a story it could be in a year be a show-stopper. agreed to set aside per- for Detroit. Nature ab- should have a voice — even if their or two from now when the nation- As a resident of the city — and a sonal and professional hors a vacuum, as the CEOs don’t live in the city. al media descend on Detroit to cov- voter — I’m hoping the Detroit’s agendas to focus on: saying goes, but this is Who can convene such a group? er a city transformed, with a new next chapter is a story of civic re- Ⅲ Identifying and elect- not the time for self-serv- I think some senior statesmen “clean government” agenda that newal, the kind that swept through ing quality candidates in ing public leadership. If could do it, people with impeccable has produced one of the most spec- American cities in the early 1900s 2009 for city offices whose enough people of influ- community credentials. tacular municipal comebacks of when voters rebelled against Tam- ethics and integrity are ence, from grassroots ac- Detroiters would likely embrace this new century. many Hall-type corruption and po- beyond reproach. tivists up to church, non- such an effort. In a poll conducted Mary Kramer is publisher of litical machine politics. Ⅲ Pursuing a charter profit and business the week of Aug. 11 on behalf of De- Crain's Detroit Business. Catch her What if that happened again? revision that would, at its core, fix leaders spoke as one voice about troit Renaissance Inc., more than take on business news at 6:50 a.m. What if a kind of “Committee of the problems uncovered in this what it will take to move the city for- 73 percent of city voters viewed Mondays on the Paul W. Smith show 100” emerged in Detroit that in- mayoral scandal as well as provid- ward, they might silence those who Kilpatrick unfavorably. But the on WJR AM 760 and in her blog at cluded leaders from local church- ing for council election by districts. are always eager to play city against even more voters were unhappy www.crainsdetroit.com/kramer. es, business, community-grass- Ⅲ Uniting behind a single candi- suburb, black against white, com- with the performance of City E-mail her at [email protected].
LETTERS CONTINUED Crain’s Book of Lists 2009 ■ From Page 8 Logistics help here already ant your ad to cover every dimension of Metro Detroit’s Editor: I read with interest Daniel Dug- business community? gan’s story about the advantages W Nothing reaches wider, higher and deeper that the Southeast Michigan region has for being a logistics hub and an than Crain’s Book of Lists. Our 2009 edition alternative for the more congested will put your ad in view of the largest and expensive Chicago area (“Re- gion has advantages for being logis- audience of Southeast Michigan business tics hub,” Aug. 25). I could not agree readers. And not just for a passing glance. with him more. We in the Detroit area can also capitalize on the addi- Readers typically refer to the Book of Lists tional costs and delays that are ex- many times throughout the year. perienced by companies when freight must move in and out of the very congested East Coast and West Coast air and sea ports by demon- strating that a Detroit area arrival or departure can be more cost effec- The D in Depth tive and timely for those involved. I was disappointed that he didn’t This helps you capture your customers’ include comments, or a position from any of the excellent logistics attention and focus them on your providers in the area, in favor of in- marketing message. cluding those from outside Detroit. I can assure you that while we al- Crain’s ways welcome new additions to our Book of Lists provides the most logistics community, as it is a posi- in-depth facts and figures on Southeast tive sign of growth for the area, we currently have a full complement of Michigan business. Many executives consider companies able to serve the logisti- it a buyer’s guide to area companies and cal needs of area manufacturers, importers, and exporters. service. Imagine the impression your ad can While I consider the Detroit make in this must-read, must-keep edition: Metro-Willow Run aerotropolis a good long-term project, we need to x 88% of readers are in top and middle recognize the current opportunities that deliver many of the same ad- management positions.* vantages that the proposed full- x More than two-thirds retain the Book of scale development may deliver in the future. I would prefer the cur- Lists for at least six months. rent capacities be better utilized be- x fore there is a concentrated effort to Over one-third retain the edition for divert traffic, business, and oppor- more than a year. tunities away from existing ser- vices. In the current economic envi- x 84% of readers consider the edition a ronment (whether you want to label valuable resource. it a depression, recession, or just an economic downturn), it is impor- x 83% are satisfied or very satisfied with it. tant to point out that there are many existing offerings of vacant x 88% would recommend the publication warehouse space, manufacturing to a business colleague. properties and available logistical services in the Detroit Metropolitan Be seen where Detroit’s business visionaries Airport area that can be capitalized upon to meet the needs of almost dig deep for insight. any manufacturer, importer, or ex- Advertise in Crain’s Book of Lists 2009. porter looking for these advantages. And there are excellent logistical *Wayne State University Market Research Report companies that would jump at the chance to help them do just that. Reserve your space in the 2009 Crain’s Book of Lists today. Cindy Allen President, Detroit Customs Brokers and Forwarders Call 313/446-6052. Or email [email protected]. Association Vice President Customs and Director of Compliance Issue Date: Dec. 29 | Closing Date: Oct. 29 Argents Air Express Ltd. Romulus DBpageAD.qxd 4/15/2008 11:58 AM Page 1 © 2008 Liberty Mutual Group.© 2008 Liberty
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September 8, 2008 CRAIN’S DETROIT BUSINESS Page 11
REPORTER’S NOTEBOOK No. 1 employers by county Washtenaw: Univ. of Michigan 25,004 Daniel Duggan covers real estate Livingston: Citizens Insurance 850 and hospitality. Call (313) Wayne: Ford Motor Co. 36,000 (est.) 446-0414 or write dduggan @crain.com. For complete lists, see Page 15. Washtenaw, LIvingston, wayne
Daniel Duggan Slicing the real estate pie Maize and Blue Brokers can slice and dice metro De- troit’s industrial real estate really fast using original-equipment manufacturers as a guide. The near-west side: Ford Motor Co. The I-75 corridor: Chrysler L.L.C. turf. And Detroit: General Motors Corp. Stephen M. Ross School of Business building boom Follow that rough logic for the I-275 corridor from Eight Mile Road to Michi- gan Avenue, including the area along I-96 west of Telegraph Road. UM spending more than $1B on construction Including sublease space, the total vacancy rate has remained stable at 11.1 at the end of the second quarter BY CHAD HALCOM of 2008, according to data from the CRAIN’S DETROIT BUSINESS Bethesda, Md.-based real estate re- he University of Michigan is rolling out search company CoStar Group. the orange — as in construction bar- Why? It’s considered neutral turf. T ricades — after raising most of the Foreign-based companies not inter- green for a $500 million capital campaign ested in being overshadowed by a to help fund several Ann Arbor campus major company are looking to places construction projects. like Plymouth, Canton Township and The university’s campus and nearby Novi. Logistics companies not interest- health center began the academic year ed in the airport area are also targets. with at least seven pending construction Without sublease space, the corridor projects totaling more than $1.2 billion. had an 8.8 percent vacancy rate at the Mosher-Jordan Residence Hall Four more projects totaling $122.6 million end of the second quarter, down con- reached completion this year. siderably from the second quarter in “We do have a lot going on,” said Sue 2007 at 11 percent. However, space MAIZE AND BLUEPRINTS Gott, university planner for UM Architec- up for sublease has jumped, from 0.2 ture Engineering and Construction, the de- Construction projects at the University of percent in second quarter 2007 to 2.3 partment that oversees Michigan and their completion dates: percent in 2008. the design and construc- Ⅲ Stephen M. Ross School of Business Absorption of space in 2008 was tion on buildings, utili- building, $145 million. Fall 2008. mostly positive compared with 2007. ties and infrastructure. Ⅲ Renovation of Mosher-Jordan “There was a while there where it “And it extends across Residence Hall and a new university felt like we were getting barraged by all of our operations.” center, with capacity to serve more than new space in the area every day,” said Henry Baier, associ- 500 students, $65.1 million. Complete. Tony Avendt, an associate vice presi- ate vice president of fa- Ⅲ Kellogg Eye Center expansion, $121 dent in the Southfield office of Grubb & cilities and operations million. 2010. Ellis who specializes in western Wayne at UM, said the surge of Ⅲ County. North Quad Residential and Academic Kellogg Eye Center construction projects is Complex, $175 million. 2010. Logistics companies and foreign- Gott a result of several local based auto suppliers have shown inter- Ⅲ C.S. Mott Children’s Hospital and economic factors converging. est in the area. Freeway access and Women’s Hospital replacement Medical campus improvements, most growing population density have been complex, $523 million. 2010. notably the replacement hospital complex other factors driving new deals, said Ⅲ Michigan Stadium, 400,000- for the C.S. Mott Children’s Hospital and Avendt. square-foot addition, $226 million. Women’s Hospital, are to meet increased de- Recent deals, according to CoStar 2010. mand for health care services and rejuve- data: nate the aging infrastructure at the exist- Not pictured: ■ Orlando-based pallet-maker CHEP ing hospital buildings. A Michigan Ⅲ Indoor practice facility for the USA took 64,000 square feet in Livo- Mott Children’s Hospital rendering Stadium expansion, he said, was partly a football team, $26.1 million. 2009. nia in June, with Grubb & Ellis and UGL business decision to grow ticket revenue Ⅲ Thompson Street parking structure Equis as brokers. by meeting a shift in demand for amenities addition, $15.7 million. 2009. North Quad rendering ■ In April, Memphis-based alu- at athletic events. minum and glass distributor and fabri- Residential projects, such as the North cator Vitro America Inc. took 104,000 Quad Residential and Academic Complex square feet in Westland, with Insite and a new dining hall, he said, are partly an Real Estate and Signature Associates attempt to offer more capacity and appeal- as brokers. ing housing options to undergraduate stu- ■ Jacksonville-based CEVA Logis- dents. The city of Ann Arbor previously has tics moved into 91,000 square feet in approached the university about what it Westland in August, with Insite as can do to help ease a tight local housing broker. market packed with off-campus housing, he ■ Spring Lake-based Bay Logistics said. renewed 455,000 square feet in Can- The construction and renovation draws ton Township in June. on several funding sources, including the Gary Sallen, a principal with South- capital campaign, which concludes at field-based Signature Associates, said year’s end. aggressive landlords help. “There haven’t been a lot of capital out- “You have several large, entrepre- lay projects approved for the state’s (col- neurial landlords on the west side who leges and universities) to build in the last spend the money to make sure build- few decades, and the support we do receive ings are in first-class condition,” he is generally small and episodic,” said said. “And once they have interest in Robert Groves, associate vice president of their buildings, these landlords are development at UM. “So Michigan has had able to negotiate very attractive deals.” See UM, Page 12 Michigan Stadium DETROIT BUSINESS MAIN 09-08-08 A 12 CDB 9/4/2008 10:41 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS September 8, 2008
FOCUS:WASHTENAW, LIVINGSTON, WAYNE UM: Work on new and renovated buildings worth more than $1B ■ From Page 11
to learn how to manage its own col- “Much of the new construction Cambridge, Mass. former Frieze Building. “The construction industry in lege renovation and construction, is redeveloping and making use of About $40 million of the Kellogg Construction began with the de- Michigan is being supported almost including reliance on private our existing space, and (one pro- project cost is funded by capital molition of Frieze, over a year ago, entirely by what I would call insti- funds.” ject) will connect with an historic campaign-related private dona- and is scheduled to wrap in sum- tutional development — building Private funds will account for library building and combine old tions, Groves said. mer 2010. One tower will house projects for colleges or museums, about $75 million of the $523 mil- and new facilities,” Gott said. Since its origins in 2001, the UM mainly dormitory-style living nonprofit organizations or church- lion cost for the C.S. Mott Chil- The remaining $30 million for the capital campaign has raised $462 space, and the other will house es,” he said. dren’s Hospital and Women’s Hos- Ross building comes from planned million as of late August toward its classroom and faculty office space Walbridge, for example, is in- pital replacement complex, which giving and other pre-existing donor goal of $500 million by year’s end for the university’s College of Lit- volved in at least two UM projects will feature a new nine-story inpa- arrangements falling outside the — although Groves said the $38 erature Science and Arts and the and a planned renovation of the tient building and 12-story equip- scope of the UM capital campaign, million gap is really a campuswide School of Information. Argonaut building for the College for ment building at the eastern end of Groves said, making Ross an entire- “bottom line” figure, since some Detroit-based Walbridge-Aldinger Creative Studies in Detroit. the University of Michigan Medical ly gift-funded project. component campaigns in individ- Co. is the building manager on the Several of the UM construction Center campus. Gilbane/Clark, the Ann Arbor ual colleges have exceeded their North Quad project; architectural projects also get their funding in Groves said that only about $50 joint-venture company created by fundraising goals and at least one firms Einhorn Yaffee Prescott and part from selling bonds. About $150 million of those funds have been Rhode Island-based Gilbane Building has more than $38 million to go. Robert A.M. Stern Architects were million of the Mott project funds raised thus far for that project, but Co. and Lansing-based Clark Con- Some funding for the Kellogg and the design team. will come from bonded debt and construction projects often get un- struction Co., is the construction Mott projects is coming out of the Jon Savoy, president of Lee & As- about $145 million in bonds will pay der way before private funding is manager on the project. New York- medical center’s revenues from pa- sociates commercial real estate for the stadium project, although fully in place. The Mott replace- based Kohn Pedersen Fox Associates tient care, and present or future services in Novi, said the steady Baier said some figures are still flu- ment project broke ground in 2006, is the project architect. ticket sales to football events will be work from UM and other institu- id based on ongoing fundraising. and construction is expected to Ross is the third UM building used to finance construction on the tions is good news during tough Chad Halcom: (313) 446-6796, conclude in late 2010. project in five years awarded to $226 million renovation and expan- times for real estate contractors. [email protected] Southfield-based Barton Malow Gilbane/Clark, said Chris Lovely, sion to Michigan Stadium. Co. is construction manager on the regional projects manager for The 400,000-square-foot addition Mott hospital project; HKS Archi- Gilbane Building in Chicago. The raises two masonry structures on tects Inc. in Farmington Hills is the company also completed the either side of the stadium — project architect. 478,000-square-foot UM Biomedical adding capacity for 83 new suites Capital campaign funds will also Science Research Building in 2006, and 3,000 new club seats. The pro- comprise $115 million of the esti- and expects to complete the Kel- ject increases the football venue’s mated $145 million for the new logg Eye Center expansion project seating capacity to above 108,000. 2008 Charity Golf Event Stephen M. Ross School of Business on the medical center campus. About $32 million in funding will building, expected to reach com- Lovely expects the Kellogg project come from private gifts, Groves The TriMas Foundation would like to thank the following sponsors for pletion in late October or early No- could wrap by the end of 2009, said. Construction is scheduled to their support in our Fifth Annual Charity Golf Event. The purpose of vember near Hill and Tappan though the university expects com- wrap in late 2010. Barton-Malow is our annual event is to raise money in support of local charities that streets on the Ann Arbor campus. pletion in 2010. the construction manager on the provide outreach to children. Faculty will move in during late The $121 million Kellogg Eye stadium project, with Kansas City- fall and classes will begin next se- Center expansion will add 222,000 based HNTB Architecture Inc. as pro- Gold+ Sponsor mester inside the new structure, square feet in a new tower attached ject architect. which replaces at least two other to the current eye center, and con- Steel has gone up for the North McDonald Hopkins structures in the Ross complex — struction began in late 2006. Joining Quad Residential and Academic the William A. Paton accounting Gilbane/Clark as building designer Complex, a $175 million project for Gold Sponsor building and a former executive is The Stubbins Associates of Massa- two connected towers along East education building. chusetts L.L.P. architectural firm in Huron Street, on the site of UM’s ACE USA Ernst & Young LLP Aon Risk Services Moscone Family Foundation Cahill Gordon & Reindel Penske Corporation DieTech North America Silver Sponsor
Aetna Inc. KPMG LLP BERCO Inc. McGraw Wentworth Butzel Long National City Bank Citizens Bank Northern Trust Bank Comerica Bank Plauche Maselli Parkerson LLP Deloitte T.A. Systems Build Stronger Duff & Phelps LLP The Sergei Federov Foundation Dykema Gossett W.Y. Campbell & Co. People Skills Honigman Miller Schwartz & Cohn Wachovia Securities LLC With five certification curriculums, Jackson Lewis LLP Woodward Emhardt Moriarty a host of public workshops, KeyBanc Capital Markets McNett & Henry LLP seminars, and custom training options, Bronze Sponsor our Learning and Advancement programs Allianz Global Corporate Miller Canfield Paddock build stronger, more & Specialty & Stone PLC effective people skills. Bank of America Pentastar Aviation LLC Beringea LLC PULSE Marketing Citation Corporation Reed Smith LLP Klein Wilson Smith and Syberg Inc. Kojaian Company Stout Risius Ross Inc. Special Thank You’s
Corvus International Michael Santini Greg Fisher Milliman Chris Forte North Brothers Lincoln Mercury David Iwan Pamela J. Newman Foundation Delta Dental Paul Gamba Diversified Property Solutions Richard Dumont (248) 353-4500 ASEONLINE.ORG James M. Durlacher T.E.A.M. Employee Assistance Patrick Jakeway /035)8&45&3/)*()8":4065)'*&-% .*$)*("/ Tracy McClure - Albrecht & Co. Jim and Lynda Panaretos
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September 8, 2008 CRAIN’S DETROIT BUSINESS Page 13
WASHTENAW, LIVINGSTON, WAYNE
Retail development boom There’s A Lot Behind This Logo... quiets down in Livingston FIDELITY
BY MIKE SCOTT SPECIAL TO CRAIN’S DETROIT BUSINESS Michigan Founded and Based Significant retail development continues in Livingston County, All Decisions Made Locally although the flow through the pipeline is beginning to taper off. Lasting Customer Relationships Hartland Township soon will be the home of a 650,000-square-foot Commitment to Community retail development called Hartland Towne Square and anchored by a Meijer store. The developer is www.fidbank.com Farmington Hills-based Ramco-Ger- shenson Properties Trust. A Wal-Mart Among the developments slated for Hartland Township is Hartland Towne store also will be built at a nearby Square, shown in this rendering. Serving you in EQUAL HOUSING 300,0000-square-foot project called LENDER Hartland Marketplace by Hartland 23 said. However, he also admits that Wayne • Oakland • Macomb • Washtenaw Retail Development Co. of West the flow of new projects is drying Bloomfield Township. up. Both projects are adjacent to an In Fowlerville, ground has bro- existing complex that includes ken on a 15,000-square-foot hard- both Target and Kroger stores. The ware store, and 12,000 square feet Kroger was a redevelopment that of mixed-use retail space will replaced an existing Farmer Jack break ground in the coming Food, Spirits... And All That Jazz! last year. Each development is months. near the intersection of U.S. 23 and A new St. Joseph Mercy Livingston Wednesday & Thursday - 4 PM to Midnight M-59. Hospital will be built in Marion The Meijer is scheduled to open Township along Pinckney Road Friday & Saturday - 4 PM to 2 AM in late summer 2009, with the oth- (D-19), with construction likely to Live Piano Set - 4 PM to 5:30 PM er stores expected to open by 2010. begin next year. That could result Live Jazz Sets at 6:00 PM & 8:30 PM That intersection also is expect- in additional developments being ed to include a Menards retail store built adjacent to the new hospital by 2010, said Joey Agree, executive location along the D-19 corridor vice president for one of the devel- south of I-96, real estate watchers opers on the site, Agree Realty in predict. Marion Township has ap- proved a site plan for a new 30,000- Farmington Hills. “It’s not the food alone that puts the The mini-development boom fol- square-foot office-medical build- Dirty Dog into that small, rarefied lows other recent Livingston ing. group of four-star dinner destinations. County investment such as the Existing retail space there also It’s the total package.” 2006 opening of the Greek Oak Vil- is being renovated, and it’s expect- lage Place in Green Oak Township, ed to include a grocery store. The – Sylvia Rector, Detroit Free Press opened near the Lee Road inter- site used to be the home of a Lans- change at U.S. 23. ing Community College satellite “There is nothing like it in Michigan” A number of small develop- branch. – Joe Muer ments are being built in nearby Kevin Brady, a Brighton-based Brighton, including a Walgreens partner with commercial real es- along Grand River Avenue near tate brokerage Lee & Associates, the Old 23 intersection, a Power- said recent population gains con- house Gym on Old 23, a Discount Tire tinue to drive interest in key inter- on Lee Road, Starbucks and Olga’s sections. Kitchen restaurants near down- Livingston County’s population town, and a TCF Bank branch on grew 35.7 percent from 1990-2000, West Grand River Avenue. according to the 2000 Census, and Two Asian restaurants, the more than 34,000 new residents Sagano Japanese Bistro on Main have moved into the county since Street and the Ti’s Asian Cuisine on 2000, a 22 percent increase, based Cross Street, also have been ap- on Southeast Michigan Council of proved and should begin construc- Governments figures. Dirty Dog Jazz Cafe Reservations Recommended tion soon, said Amy Cyphert, “Back in 2000-01, everyone want- 97 Kercheval / Grosse Pointe Farms 313-882-5299 / www.dirtydogjazz.com deputy planner for the city of ed a piece of Livingston County, Brighton. but since then values have come “What we have going for us here down and growth has slowed,” in Brighton is that we’ve become a Brady said. “I can tell you that the destination city for restaurants land adjacent to any freeway inter- and some specialty shops,” changes, though, remains a popu- Cyphert said. lar place for ongoing develop- Livingston County remains a ments.” candidate for future developments One such example is Latson because of its location halfway be- Road near I-96 in Genoa Township, tween Detroit and Lansing and its where a highway interchange is proximity to such nearby freeways expected to be built in 2010. A num- as I-96 and U.S. 23, Agree said. ber of possible developments have From the early 1990s through around 2004-05, Livingston County been discussed for that impending was among the fastest-growing ar- interchange, from medical facili- eas for new population in the state, ties to hotels and restaurants. helping to support rapid residen- SEMCOG projections estimate tial development, which has since that Livingston County will add tapered off. 32,000 people, or 17.66 percent, be- In Hartland Township alone, tween 2005 and 2035. Macomb that has prompted heavy retail de- County is predicted to be the next- velopment. There, 800,000 square highest growth area by percent- feet of retail space has been devel- age, with an 11.56 percent in- oped during the last year, Agree crease, or 95,958 people. DETROIT BUSINESS MAIN 09-08-08 A 14 CDB 9/4/2008 11:20 AM Page 1
Page 14 CRAIN’S DETROIT BUSINESS September 8, 2008
WASHTENAW, LIVINGSTON, WAYNE
“At Leonard & Company, decisions are made right here on site, not in a series of calls to New York. Negotiations, funding slow This kind of rapid response helps me stay focused on what’s most important — my clients.” commuter rail projects
— David Aquilina, Leonard & Company, Troy BY BILL SHEA tracks because of scheduling is- CRAIN’S DETROIT BUSINESS sues. Palombo expects a resolution in the coming months. The watchword for a pair of Several studies are under way At commuter rail projects that even- that will determine the cost of such Leonard & Company… tually would link Livingston and a line and how it should be funded, Washtenaw counties to Detroit is he said, and noted that up to $5 mil- waiting. lion already is in the bank from past …we listen to our brokers. And our brokers listen to their clients. As in waiting for negotiations federal earmarks. with railroad companies skittish The proposed rail service would Leonard & Company is Michigan’s largest independent brokerage firm. about sharing tracks with passen- tie into proposed light-rail service ger trains. And, waiting for funding. on Detroit’s Woodward Avenue, We are a regional investment firm with an entrepreneurial environment that very On the drawing board is a 48- and an Ann Arbor-Howell link in successful brokers want and need — a comfortable, stress-free atmosphere where they can mile passenger train service be- the planning stages. tween downtown Ann Arbor and experience independence, build their business, and best serve their clients. The north-south Ann Arbor- Detroit’s New Center, a project Howell service has a $30 million We provide the finest amenities and the latest in research and technology, with securities championed by the Southeast Michi- price tag, said Eli Cooper, trans- carried by one of North America’s largest financial institutions. gan Council of Governments. portation program manager for The goal is to have the com- Ann Arbor. Great Lakes Central Rail- muter line, to be operated by Am- road, owned by Farmington Hills- trak, running by fall 2010, said based Federated Capital Corp., leases Carmine Palombo, SEMCOG’s di- from the state the 30-plus miles of rector of transportation planning. track earmarked for the line and is “We are still negotiating with providing refurbished passenger the railroads for use of the tracks cars for the route. Talks remain 1450 West Long Lake RoaD s Suite 15 s Troy,MI4809 s 248-952-5858 and the costs associated with be- stalled with Howell-based Ann Ar- www.leonardandcompany.com ing able to run passenger and bor Railroad, which owns the last freight trains in the same right of key mile of track inside the city. Michigan: Corporate Headquarters — Troy. Birmingham. Grand Rapids. Grosse Pointe Farms. Sterling Heights. way,” he said. Not getting that final bit of track Colorado & New York The tracks are owned by Norfolk isn’t a deal breaker, but it is a ma- Southern, Conrail and Canadian Na- jor obstacle, Cooper said. Member FINRA, SIPC tional. Railroad freight companies Bill Shea: (313) 446-1626, traditionally are wary of sharing [email protected]
Where did this restaurateur find a recipe for success? In the pages of Crain’s.
How can I serve all the patrons at our 11 Andiamo locations at the same time? “I use Crain’s to talk with them. I can tell them about our specials, upcoming entertainment, and how we cater to corporate meetings. If you want to reach the area’s top business leaders and decision makers, Crain’s brings them to the table.” Joe Vicari CEO, President Andiamo Restaurant Group
If you’d like to beef up your ROI, Crain’s is the order of the day. To check out our menu of special reach & frequency packages call (313) 446-6052 or e-mail us at [email protected].
Get into what they’re into. DETROIT BUSINESS MAIN 09-08-08 A 15 CDB 9/4/2008 4:53 PM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 15 CRAIN'S LIST: WASHTENAW COUNTY'S CRAIN'S LIST: WAYNE COUNTY'S LARGEST LARGEST EMPLOYERS EMPLOYERS Ranked by full-time employees
Full-time Full-time Ranked by full-time employees Company employees employees Address Top local Wayne County Michigan/ Full-time Rank Phone; Web site executive Jan. 2008 Worldwide 2008 employees Full-time Company Washtenaw employees Ford Motor Co. Alan Mulally 36,000 B NA Address County Michigan/ 1. 1 American Road, Dearborn 48126 CEO and 42,309 229,000 Rank Phone; Web site Top local executive Jan. 2008/2007 Worldwide 2008 (313) 322-3000; www.ford.com president Mary Sue Coleman 25,004 NA Oakwood Healthcare Inc. Brian Connolly 7,459 7,462 University of Michigan 7,510 1. Ann Arbor 48109 president 23,785 NA 2. 1 Parklane Blvd., Suite 1000E, Dearborn 48126 CEO and 7,462 (734) 764-1817; www.umich.edu (313) 253-6000; www.oakwood.org president AutoAlliance International Inc. Gary Roe 3,508 NA NA Joseph Swedish 4,802 21,090 3. 1 International Drive, Flat Rock 48134 president and NA Trinity Health Corp. CEO 2. 27870 Cabot Drive, Novi 48377 president and CEO 4,800 43,548 (734) 782-7482; www.autoalliance.com (248) 489-5004; www.trinity-health.org Henry Ford Health System Nancy 3,463 16,611 3,208 4. 1 Ford Place, Detroit 48202 Schlichting 16,663 Alan Mulally 3,838 NA (800) 436-7936; www.henryford.com CEO and Ford Motor Co. president 3. 1 American Road, Dearborn 48126 CEO and president 4,023 229,000 (313) 322-3000; www.ford.com Johnson Controls Automotive Beda Bolzenius 3,000 B NA Experience president, 3,050 NA 5. automotive G. Richard Wagoner 3,264 59,524 49200 Halyard Drive, Plymouth 48170 experience General Motors Corp. (734) 254-5000; www.johnsoncontrols.com 4. 300 Renaissance Center, Detroit 48265 chairman and CEO 3,511 266,837 (313) 556-5000; www.gm.com Visteon Corp. Michael Johnston 2,700 C NA 6. 1 Village Center Drive, Van Buren Township 48111 executive 3,782 NA (800) 847-8366; www.visteon.com chairman Ann Arbor Public Schools Todd Roberts 3,200 B 3,200 B 2555 S. State St., Ann Arbor 48104 superintendent NA 3,200 B U.S. Steel - Great Lakes Works Fred Jauss 2,487 2,602 5. 2,432 (734) 994-2200; www.aaps.k12.mi.us 7. 100 Quality Drive, Ecorse 48229 general manager 50,000 (313) 749-2100; www.ussteel.com U.S. government NA 2,189 C 24,548 D U.S. Postal Service Nancy 2,329 9,956 D 2,433 6. 477 Michigan Ave., Detroit 48226 2,133 1,743,537 8. 1401 W. Fort St., Detroit 48216-9998 Rettinhouse NA (800) 688-9889 (313) 226-8607; www.usps.gov district manager General Motors Corp. G. Richard 2,153 59,524 2,431 Eastern Michigan University Donald Loppnow 1,937 NA 9. 300 Renaissance Center, Detroit 48265 Wagoner 266,837 7. 235 Warner, Ypsilanti 48197 executive vice 1,867 NA (313) 556-5000; www.gm.com chairman and (734) 487-1849; www.emich.edu president and provost CEO Dearborn Public Schools John Artis 2,119 D 2,119 D 2,346 State of Michigan Jennifer Granholm 1,628 48,420 10. 18700 Audette, Dearborn 48124 superintendent 2,119 D 8. Cadillac Place, Detroit 48202 governor 1,694 48,465 (313) 827-3020; www.dearbornschools.org (313) 456-4400; www.michigan.gov 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 = not available. Washtenaw County Robert Guenzel 1,383 NA B Crain's estimate. administrator 1,383 1,383 9. 220 N. Main St., Ann Arbor 48107-8645 C (734) 222-6800; www.eWashtenaw.org Does not include salaried employees leased to Automotive Components Holdings L.L.C. D FTE totals from the Center for Educational Performance and Information's December 2007 Registry of Educational Personnel summary. Borders Group Inc. George Jones 1,331 NA 10. 100 Phoenix Drive, Ann Arbor 48108 CEO and president 1,163 NA LIST RESEARCHED BY ANNE MARKS, JOANNE SCHARICH, CHRISTY SCHMITZ AND BERNADINE WILLIAMS (734) 477-1100; www.bordersgroupinc.com
IHA William Fileti 892 NA 11. 24 Frank Lloyd Wright Drive, P.O. Box 0446, CEO 882 NA Lobby J, Ann Arbor 48106-0446 CRAIN'S LIST: LIVINGSTON COUNTY'S (734) 747-6766; www.ihacares.com City of Ann Arbor Roger Fraser 803 NA 12. P.O. Box 8647, Ann Arbor 48107 city administrator 803 NA LARGEST EMPLOYERS (734) 994-2803; www.ci.ann-arbor.mi.us Ranked by full-time employees Chelsea Community Hospital Kathleen Griffiths 709 NA CEO 711 NA 13. 775 S. Main St., Chelsea 48118 Full-time (734) 475-1311; www.cch.org Full-time employees Company employees Michigan/ Anthony Earley Jr. 610 9,705 Address Top local Livingston County Worldwide DTE Energy Co. Rank 14. 2000 Second Ave., Detroit 48226 CEO and chairman 638 10,296 Phone; Web site executive Jan. 2008/2007 Jan. 2008 (313) 235-4000; www.dteenergy.com Citizens Insurance Co. of America Paul Mueller 850 NA 1. 645 W. Grand River Ave., Howell 48843 regional president 850 NA Ypsilanti Public Schools James Hawkins 591 B 591 B (517) 546-2160; www.allmerica.com superintendent 650 B 15. 1885 Packard Road, Ypsilanti 48197 591 B B (734) 714-1210; www.ypsd.org Howell Public School District W. Charles 848 848 2. 411 N. Highlander Way, Howell 48843 Breiner 836 C 848 B (517) 548-6200; howellschools.com superintendent Larry Whitworth 566 567 Washtenaw Community College B B 16. 4800 E. Huron River Drive, P.O. Box 1610, president 566 567 Brighton Area Schools James Craig 672 672 Ann Arbor 48106-1610 3. 125 S. Church St., Brighton 48116 superintendent 700 672 B (734) 973-3543; www.wccnet.edu (810) 299-4000; bas.k12.mi.us U.S. Postal Service Nancy Rettinhouse 535 9,956 Trinity Health Corp. Joseph Swedish 580 21,090 17. 1401 W. Fort St., Detroit 48216-9998 district manager 489 NA 4. 27870 Cabot Drive, Novi 48377 president and 624 43,548 (313) 226-8607; www.usps.gov (248) 489-5004; www.trinity-health.org CEO Hartland Consolidated Schools Janet Sifferman 571 B 571 B Saline Area Schools Scot Graden 531 B 531 B 5. 9525 Highland Road, Howell 48843 superintendent 565 571 B 18. 200 N. Ann Arbor St., Saline 48176 superintendent NA 531 B (810) 746-2100; hartland.k12.mi.us (734) 429-8000; www.salineschools.com Livingston County Robert Block 544 544 6. 304 E. Grand River, Suite 205, Howell 48843 county 536 544 Lincoln Consolidated Schools Lynn Cleary 524 B 524 B (517) 546-1010; co.livingston.mi.us administrator 19. 8970 Whittaker Road, Ypsilanti 48197 superintendent NA 524 B (734) 484-7000; lincoln.k12.mi.us Pinckney School District Dan Danosky 496 B 496 B 7. 2130 E. M-36, Pinckney 48169 superintendent 569 C 496 B (810) 225-3900; pcs.k12.mi.us Chrysler L.L.C. Robert Nardelli 497 29,811 20. 1000 Chrysler Drive, Auburn Hills 48326 chairman and CEO 547 71,578 State of Michigan Jennifer Granholm 446 48,420 (800) 334-9200; www.chryslerllc.com 8. Cadillac Place, Detroit 48202 governor 554 48,465 (313) 456-4400; www.michigan.gov B B This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by Fowlerville Community Schools Ed Alverson 329 329 superintendent B the companies. Number of full-time employees may include full-time equivalents. NA = not available. Bank of Amercia, 9. 735 N. Grand Ave., Fowlerville 48836 375 329 which Crain's believes would qualify for this list, did not provide 2008 figures and a reliable estimate could not be (517) 223-6000; scnc.fvl.k12.mi.us made. For 2007, LaSalle Bank, now Bank of America, reported 992 full-time employee, to Crain's. Visteon reported 715 Medilodge of Howell Inc. Jana Stuever 263 NA full-time employees in 2007. Visteon leases employees to Automotive Component Holdings. Counts for these employees 10. 1333 W. Grand River Ave., Howell 48843 administrator 270 NA were not reported in 2008, and a reliable estimate could not be made. (517) 548-1900 B FTE totals from the Center for Educational Performance and Information's December 2007 Registry of Educational Personnel summary. 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 = not available. C Figures from September 2007. B FTE totals from the Center for Educational Performance and Information's December 2007 Registry of Educational D As of September 2007. Personnel summary. LIST RESEARCHED BY ANNE MARKS, JOANNE SCHARICH AND BERNADINE WILLIAMS C Includes full- and part-time employees. LIST RESEARCHED BY ANNE MARKS, JOANNE SCHARICH, CHRISTY SCHMITZ AND BERNADINE WILLIAMS DETROIT BUSINESS MAIN 09-08-08 A 16 CDB 9/4/2008 2:49 PM Page 1
Page 16 CRAIN’S DETROIT BUSINESS September 8, 2008 CALENDAR TUESDAY others. Contact: (248) 582-8465. SEPT. 9 A New Paradigm for Public Broadcast- How to Get a Big Bang from a Small ing. 11:30 a.m.-1:30 p.m. Sept. 18. De- Marketing Budget. 5-7 p.m. Ann Arbor troit Economic Club. Paula Kerger, Spark. With: Sam Fine, Intermedia president and CEO, PBS. Detroit Mar- L.L.C.; Marcy Jennings, PWB Market- riott at the Renaissance Center. $40 ing Communications; and Derek members, $50 guests of members, $75 Mehraban, Ingenex Digital Market- nonmembers. Contact: (313) 963-8547. ing. Free. Spark Central, Ann Arbor. Contact: (734) 761-9317. Who Needs a Venture Capitalist? 5 p.m. Sept. 18. New Enterprise Forum. Cindy Douglas, director, program ad- WEDNESDAY ministration, Michigan Economic De- SEPT. 10 velopment Corp.; Francis Glorie, for- mer CEO, Irwin Magnetics and Engineering Society of Detroit Open independent finance/marketing con- House. 5:30-7:30 p.m. The Engineering sultant; Tony Grover, managing direc- Society of Detroit will showcase its tor, RPM Ventures; and Peter Wood- new facility and launch a series of ford, alternative investments division Michigan initiatives to help the re- administrator, investments bureau, gion. $15 for nonmembers, free for Department of Treasury, State of ESD members. ESD headquarters, Michigan. Free to members, $5 stu- Southfield. Contact: Linda LaPointe, (248) 353-0735, ext. 111. dents, $20 others. Spark Central, Ann Arbor. Contact: (734) 418-3388. Business Over Breakfast: The Aero- tropolis: Is the Detroit Region Ready Crain’s Detroit Business 2008 House to Take Flight? 7:30-9:30 a.m. Crain’s Party. 5-9:30 p.m. Sept. 18. Crain’s De- Detroit Business in partnership with troit Business, Michigan State Housing Detroit Renaissance and the Down- Development Authority, MGM Grand town Detroit Partnership. Doug Roth- Detroit, and other sponsors. Enjoy well, president, Detroit Renaissance; house visits and cocktail parties 5-6:30 John Rakolta Jr., p.m. at homes, lofts and condos chairman and throughout Detroit. Then please join us CEO, Walbridge for the afterglow event 7-9:30 p.m. at the Aldinger and co- MGM Grand Detroit. $80. Includes a chair, Aerotropo- year’s subscription to Crain’s Detroit lis Task Force; Business. Contact: (313) 446-0300. and Wayne Coun- ty Executive Adcraft Club of Detroit. 11:15 a.m. Robert Ficano. Sept. 19. Mini-concert with 2008 Fairlane Center American Idols David Cook and David North Building, Archuleta. Ford Conference & Event Dearborn. $45. Center, Dearborn. $40 members, $30 Contact: (313) 446- junior members (under 25), $45 others. Rothwell 0300. Contact: (313) 872-7850. Ann Arbor Area Chamber of Com- merce Impact 2008. 7:30 a.m.-1:30 Detroit Economic Club. 11:30 a.m.-1:30 p.m. University of Michigan, oth- p.m. Sept. 23. ers. Roger Fraser, Ann Arbor city John Engler, presi- administrator, Robert Guenzel, dent, National As- Washtenaw County administrator, sociation of Man- William Miller, superintendent, ufacturers. Cobo Washtenaw Intermediate School Center, Detroit. District, and Todd Roberts, superin- $40 members, $50 tendent, Ann Arbor Public guests of mem- Schools. Kensington Court Ann bers, $75 non- Arbor. $85. Contact: Lindsay Mc- members. Con- A SUMMIT FOR EVERYONE Carthy, (734) 214-0109. tact: (313) 963-8547. WHO LOVES A CITY. THURSDAY Engler How to Write a Business Plan: Your SEPT. 11 Roadmap to Success. 6-9 p.m., Sept 24. 2008 Detroit Regional Chamber Annu- Designed for new and existing business Be a part of the creative movement re-imagining Detroit. This three-day, world-class owners who do not currently have a al Report to Membership. 8-10 a.m. conference will present interactive topics and success models from the world’s most compelling Fox Theatre, Detroit. Free for all De- business plan. Eastern Michigan Uni- experts on: troit Regional Chamber members. versity Michigan Small Business & Contact: LaToya Elliott, (313) 596-0305. Technology Development Center, De- Developing entrepreneurship and talent Creating a vibrant community troit. $40. Contact: (313) 967-9295. Competing in a global economy Encouraging diversity Crain’s Detroit Business Family- Establishing green and sustainable communities COMING EVENTS Owned Business Forum. 5 p.m. Sept. The 2008 Millionaire Entrepreneur 25. Crain’s Detroit Business, Comerica Summit. Noon-6 p.m. Sept. 13. Inter- Bank, Honigman, Michigan Business FOR THE FIRST TIME ON STAGE TOGETHER – THE BIG CREATIVE THREE national Detroit Black Expo Inc., oth- & Professional Association and Motor ers. Speakers: Ken Harris, president City Casino Hotel. Paul Berhard, di- and CEO, International Detroit Black rector of the business transition plan- RICHARD FLORIDA Expo; Herb ning group, Plante & Moran P.L.L.C. author of Rise of the Creative Class Strather, Strather Motor City Casino, Detroit. $75. $90 af- and Associates; ter Sept. 12. Contact: (313) 446-0300. JOHN HOWKINS and Cleveland Gary, former NFL Detroit Economic Club. 1130 a.m.-1:30 author of The Creative Economy player. St, Regis p.m. Sept. 30. Matt Ferguson, presi- Hotel, Detroit. dent & CEO, careerbuilder.com. Troy PLUS, SPEAKERS FROM CHARLES LANDRY General admis- Marriott. $40 members, $50 guests of ALL OVER THE GLOBE The Creative City sion: $35; VIP Mil- author of members, $75 nonmembers Contact: lionaires Power CREATIVE Luncheon: $65. (313) 963-8547. October 13-15, 2008 | Detroit Marriott | Renaissance Center | $300 Contact: (313) 595- CITIES Un-Conference October 12, 2008 | $10 Strather 7143. Register at: www.creativecitiessummit.com CALENDAR GUIDELINES SUMMIT Career Knockouts: How to Spring More Calendar items can be found Back. 6 p.m. Sept. 17. Women in Com- on the Web at www.crainsdetroit. 2.0 munications of Detroit. Diana Ja- com. Please send news releases cokoes, owner of Jacokoes Communi- for Calendar to Joanne Scharich, cations; Mida Giragosian, managing Crain’s Detroit Business, 1155 partner, Lapides Publicity Gi- ragosian; Susan Scarlet, managing Gratiot Ave., Detroit, MI 48207- and public relations director, Gongos 2997, or e-mail jscharich@ Research; and Anne Doyle, president crain.com. You also may submit of Anne Doyle Strategies. Small Calendar items in the Calendar Plates, Royal Oak. $30 members, $40 section of crainsdetroit.com. DETROIT BUSINESS MAIN 09-08-08 A 17 CDB 9/4/2008 10:42 AM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 17 PEOPLE ARCHITECTURE beverage quality program, NSF Inter- national, Ann Arbor, from president, Russell Hinkle to IN THE SPOTLIGHT DunnWorks L.L.C., Atlanta. FOR SALE or LEASE project architect, FOR SALE or LEASE retail studio, Todd Audrey Williams- Hobbs+Black As- Sheppelman Burton to director sociates Inc., Ann has been of services for Arbor, from pro- named children and fam- ject architect, president of Air ilies in Southeast SmithGroup, De- International Michigan, Luther- troit. Also, Maria Thermal an Social Services Kook to project Systems (U.S.) of Michigan, De- manager, from Inc. in Auburn troit, from direc- project manager, Hills, a supplier tor of customer Kook Integrated Archi- of HVAC and operations and tecture, Ann Ar- Sheppelman powertrain contract services, bor; and cooling Williams-Burton Chantelle Mar- the Detroit Insti- shall to designer- systems to the automotive tute for Children, Detroit. documents industry. 5755 New King Court, Troy, Michigan leader, from de- Sheppelman, 45, replaces the SUPPLIERS • 15 Year Lease in Place for 35,226 SqFt sign-documents retiring Norman Golm. Stephen Van Oss, senior vice presi- with Credit For More Information, Please Call: leader, JPRA Ar- Sheppelman had been vice dent, CFO and chief administrative of- chitects, Farm- president and general manager ficer, Wesco Distribution Inc., Pitts- • 20,889 SqFt Available on the 2nd Floor ington Hills. 248.324.2000 responsible for the General Motors burgh, to the board of directors, • Outstanding User Purchase Opportunity Corp. global business unit at Van Cooper-Standard Holdings Inc. and • 8.19 Acre Site CONSULTING Buren Township-based Visteon Marshall Cooper-Standard Automotive Inc., • Expandable for up to an Additional Cindy Warner to Corp. Novi. 60,000 SqFt managing director, IT transformation He earned a bachelor’s degree in Mihai Dorobantu to engineering man- services practice, AlixPartners, South- engineering from the University of ager-truck group technology team, www.friedmanrealestate.com field, from senior vice president, glob- Illinois and an MBA from Stanford Eaton Corp., Southfield, from technol- al technology services, salesforce. University. com, San Francisco. ogy manager for controls, systems and Air International Thermal Systems solutions, Eaton Corp. Innovation EDUCATION is headquartered in Australia and Center, Eden Prairie, Minn. has locations in the U.S., China, Larry Erickson to Mexico, Canada, Japan and Paul and Helen Germany. Farago Chair of Transportation Jeffrey Raff to Design, College partner, Trott and for Creative Stud- Trott P.C., Farm- ies, Detroit, from ington Hills, re- chief designer, maining as super- Strategic Design vising attorney, Group, Ford Mo- litigation group. tor Co., Dearborn. Erickson MARKETING FINANCE Brad Fox to direc- Unyime Ekpenyong, Cathy Judge, tor of sales, Under- Steve VanSteenkiste and Amanda tone Networks, Ward to associate, Plante & Moran Raff Grosse Pointe, P.L.L.C., Southfield, from staff mem- from sales manager, AOL’s advertis- ber. ing.com, Southfield. Jason Olekszyk, David Rizik and Nick Jim Cain to vice Zuhlke to audit senior manager, president, strate- KPMG L.L.P., Detroit, from audit man- gic communica- ager. Also, Joe Dineen, Donald Klack- tions, The Quell ing and Jimmy Walker to advisory di- Group, Troy, from rector, from advisory manager; Brent vice president, Barker, Maggie Gregory, Chris Lilla, corporate commu- Katie Viviano and Jennifer Wallace to nications, audit manager, from audit senior as- Lehman Broth- sociate; Charlie Kohler and Andrew ers, New York, Muhn to tax manager, from tax senior N.Y. Also, Karie associate; Robert McCormick, Matt Hillman to cre- Riske, Kim Stafford and Annette Cain ative director, Weckerly to advisory manager, from new media, from advisory senior associate; Robert creative director, Bame Jr., Yen-Liang Cher, Clyde Dau- Catalyst Design, taj, Michael Deter, Steve DiMambro, Rochester. Jason D’Dilva, Steven Duffy, Mario Fani, Zeena Gatia, Rachael Joritz, Li NONPROFITS Lui, Sarah Lowe, Jennifer Lusa, Min Ma, Nicole Makowski, Matthew Mey- Ida Warshay to di- er, Kurtis Peters, Kimberly Petrylka, rector of develop- Michele VanWormer, Zsofia Vegh, ment, Visiting Nick Winkler and Huifang Zhu to audit Nurse Association senior associate, from audit associate; of Southeastern Alesha Berkholz, Eric Fischer, Mike Michigan, Oak Hillman Kammann, Erik Stuessy and Rob Tay- Park, from senior lor to tax senior associate, from tax as- development officer, Providence sociate; and Jola Adamczyk, Brooke Health Foundation, Southfield. Bauer, Nitin Chowdhry, Jonathan Christopher Dunn to general manager, Latella, Stephanie Ordway and Gerri Redmond to advisory senior associ- ate, from advisory associate. PEOPLE GUIDELINES INFO/TECHNOLOGY Announcements are limited to management positions. Nonprofit John Boyless to vice president of and industry group board orderzone.com and KPI Scorecard, appointments can be found at TrackSpeed L.L.C., Ann Arbor, from www.crainsdetroit.com. Send TrackSpeed vice president of opera- Introducing Remote Deposit for your business tions. submissions for People to Joanne Daniel Iannotti to vice president, Scharich, Crain’s Detroit Business, general counsel and corporate 1155 Gratiot Ave., Detroit, MI Talk about innovative. Announcing Remote Deposit, Flagstar’s newest secretary, Ecology Coatings Inc., 48207-2997, or send e-mail to Business Banking service. Now save drive time and gas money with Bloomfield Hills, from principal, [email protected]. Releases thegeneralcounsel.com, Grosse Pointe must contain the person’s name, this faster and easier way to make bank deposits. And it’s as safe and Woods. new title, company, city in which secure as it is efficient. Visit Flagstar.com and search keyword Treasury the person will work, former title, Management or call (800) 642-0039 for details. LAW former company (if not promoted Nicholas Gorga to partner, litigation from within) and former city in Get your business $100 just for getting started. Ask how. department, Honigman, Miller, which the person worked. Photos Schwartz and Cohn L.L.P., Detroit, are welcome, but we cannot Consistently ranked tops in customer satisfaction surveys. Member FDIC | (800) 642-0039 | www.flagstar.com from associate, Latham & Watkins guarantee they will be used. L.L.P., Chicago. DETROIT BUSINESS MAIN 09-08-08 A 18 CDB 9/4/2008 10:43 AM Page 1
Page 18 CRAIN’S DETROIT BUSINESS September 8, 2008 BUSINESS DIARY CONTRACTS ers: Advance Restaurant Supply, Dear- St., Suite 4301, Pittsburgh. Telephone: el, which expands upon the company’s marketing. Snap Shop virtual tours born; Cadillac Coffee, Madison (412) 577-2497. Web site: www.perform- original automatic shutdown timer are available for the entire Detroit Henderson Glass, Rochester Hills, an- Heights; Creao Design & Printing, env.com. for mobile electronics by adding more metropolitan area. Crystal Connor is nounced an automotive service agree- Berkley; PR Services Inc., Ann Arbor; user-friendly settings and diagnostic the studio’s owner and operator. Tele- ment with Auto-Lab Complete Car Care Chase, Detroit, has opened a branch Larson Insurance Solutions Agency, features. Web site: www.charge phone: (248) 249-7962. Web site: Centers, Plymouth. Auto-Lab will offer inside the Kroger store at 17447 Hag- Livonia; guard.com. www.snapshopstudio.com. its customers glass repair and replace- gerty Road, Northville. Telephone: and Valassis Sales & Marketing and ment services using Henderson Glass’ (248) 305-6580. redplum.com for traditional and on- technicians and products. SPX Service Solutions, Southfield, is STARTUPS OTHER line advertising and future direct opening a 230,000-square-foot distribu- Matakdesign L.L.C., Birmingham, is Baker College of Allen Park an- 3.7 Designs, Ann Arbor, has been re- mail. tained by MarketPhire, an online pub- tion and logistics facility in Romeoville, an interior-design firm that provides nounced its medical laboratory tech- Near Perfect Media L.L.C., a Farming- lication of Medford, Mass., to develop Ill. Commercial operation is expected to design services for commercial and nician associate degree program has ton Hills-based public-relations and its brand, identity, and social media begin in the fourth quarter. residential properties. Sally Matak been granted accreditation by the Na- brand-management firm, has been strategy. It also has been retained to Bar Louie Novi has opened at 44375 12 owns the firm. Telephone: (248) 742- tional Accrediting Agency for Clinical awarded all public relations and mar- develop an e-commerce Web site for Mile Road, Novi. The franchise of the 9107. Web site: www.matak.com. Laboratory Science. keting responsibilities for Dirty Dog KingPin Cooling, a custom computer- Chicago-based bar and restaurant Health Care Claims Consultants Triton Stormwater Solutions, a Jazz Café, Grosse Pointe Farms. case manufacturer based in Michigan. chain sells sandwiches, appetizers, L.L.C., 5861 Pentland Road, Bloomfield Brighton manufacturer of storm wa- , an Oak Park- Llamasoft Inc., Ann Arbor, and Ciber Azure Dynamics Corp. burgers, pizzas, small plates, and Hills, specializes in helping ter chambers, has been approved as a based developer of hybrid electric Inc., Greenwood Village, Colo., have drinks. Telephone: (248) 662-1100. individuals understand, manage carbon-neutral product through third- commercial vehicles and powertrains, party certification. formed an agreement to introduce a and resolve concerns related to their new suite of Ciber’s strategic and tac- has signed sales and service agree- MOVES insurance policies and medical bills. Life Smart Foods has reopened at tical analytical technology services to ments with Northside Ford in San An- Owner Kelley Smith has more than 45200 Northpointe Blvd., Utica. The DenteMax, a dental PPO network, 10 years of experience of health care the enterprise supply-chain market. tonio, Texas, and Carmenita Ford in organic foods retailer offers organic Los Angeles. moved its two offices to Riverside Cen- claims and provider experience. produce and groceries, a deli, coffee DesignHub Inc., Saline, designed and ter, 25925 Telegraph Road, No. 400, Telephone: (248) 763-5487. café, wheat- and gluten-free foods, and developed www.vinylife.com, the new Paragon Property Management Ser- Southfield. Telephone: (800) 752-1547. Web: www.healthcareclaimsconsul prepared food and bakery items. Own- Web site for , a Romu- vices Inc., a Farmington Hills-based Vinylife Hose Co. Web site: www.dentemax.com. tants.com. ers Frank and Carolyn Leonardi re- lus industrial and commercial hose commercial real estate firm, has been Pro-Literacy Detroit, a nonprofit offer- Action Impact, 25992 W. Eight Mile built after a fire two years ago. Tele- company. named leasing agent and property man- ager for The Corners-A Center for Well ing literacy training and services, to Road, Southfield, is an indoor shoot- phone: (586) 685-1061. Web: Pro Golf, a Farmington Hills-based re- Being, West Bloomfield Township. 2111 Woodward Ave., No. 410, Detroit. ing range and training center. It fea- www.lifesmartfoods.com. tailer, has retained Sussman Sikes, a Kraemer Design Group P.L.C., an ar- tures 14 computerized firing lanes, Southfield marketing and advertising EXPANSIONS chitecture and interior-design firm, classrooms, range safety officers, cer- firm. and Intramode L.L.C., a contemporary tified firearms instructors, and a re- , a Detroit-based law DIARY GUIDELINES The Building Owners and Managers Clark Hill P.L.C. hospitality and contract procurement tail firearms store. Training classes, firm, has opened an office at 1250 Eye Association of Metropolitan Detroit, a company, have both moved to 1420 memberships, and nonmember rates Send news releases for Business St. N.W., Suite 720, Washington, D.C. professional trade association whose Broadway, Detroit. are available. Telephone: (248) 799- Diary to Joanne Scharich, Crain’s Telephone: (202) 772-0909. 7300. Web site: nearly 400 members either own or Benefit Review Services Inc., from Detroit Business, 1155 Gratiot has opened at 1952 S. www.impactrange.com. manage commercial real estate or pro- Biggby Coffee Troy to 43370 Mound Road, Sterling Ave., Detroit, MI 48207-2997 or Telegraph Road in Bloomfield Hills. vide goods and services to the indus- Heights. Telephone: (800) 558-0540. Rush Legal Services, 25882 Orchard send e-mail to jscharich@crain. Siblings Rose Glendinning and Joe try, has contracted Creative Services Web site: www.benefitreview.com. Lake, No. L5A, Farmington Hills, is a com. Use any Business Diary item Co., a Madison Heights marketing and Glendinning own the franchise. The process-serving company that serves as a model for your release, and promotions firm, to develop a historic location is the 100th franchise of the Phillip Schmitt Jr. Attorney at Law, to legal documents throughout metro South Adams Square of Birmingham. look for the appropriate category. retrospective video marking the asso- East Lansing-based chain. Detroit and also files court docu- Without complete information, your ciation’s centennial. ments. Telephone: (248) 579-3313. Performance Environmental Services NEW PRODUCTS item will not run. Photos are Palm Palace L.L.C., a Dearborn-based Inc., a Wixom environmental, health The Snap Shop Studio, Ferndale, of- welcome, but we cannot guarantee restaurant chain, announced the fol- and safety consulting firm, has Ledco-Chargeguard, Plymouth, has in- fers panoramic virtual tours and full they will be used. lowing agreements with area suppli- opened its second office at 301 Grand troduced its Chargeguard Select mod- color 360-degree images for online BENEFITS THAT BENEFIT
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AUTOMOTIVE SYSTEMS DETROIT BUSINESS MAIN 09-08-08 A 21 CDB 9/4/2008 4:24 PM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 21 Local philanthropists to be honored for efforts
BY SHERRI BEGIN Fundraiser in recognition of service CRAIN’S DETROIT BUSINESS to St. John Hospital and Medical Center. Paul W. The Association of Fundraising Pro- Smith of WJR AM fessionals, Greater Detroit Chapter 760: The Neal plans to honor individuals and orga- Shine Award for nizations for the 23rd Annual Na- Media Commit- tional Philanthropy Day Awards be- ment to Philan- fore about 800 philanthropists, thropy, for rais- volunteers and nonprofit leaders ing more than $1 Nov. 13 at the Hyatt Regency Dearborn. million for De- Paula Brown, chief development troit area chil- officer of Starfish Family Services in Smith dren and for Inkster, is chairing this year’s event. promoting and The 2008 honorees are: hosting charita- Harris Main- ble events. ster, chairman Nicholas of the depart- Beaven: The ment of surgery Youth in Philan- at Botsford Hospi- thropy Award tal, and Phoebe in recognition of Mainster, Eng- volunteering at lish literature the Dearborn Ani- professor at mal Shelter, be- Wayne State Uni- Beaven ginning in 2003 Harris Mainster versity: The Max when he was M. Fisher just 12 years old. Award for Out- Susan Davies standing Philan- Goepp, vice presi- thropist for dent for univer- decades of local sity relations philanthropy and and service in executive direc- Third World tor of the Oakland countries, per- University Founda- forming lifesav- Davies Goepp tion: The Out- ing surgeries standing Phoebe Mainster and educating Fundraising Executive Award in young doctors recognition of her 20-year philan- and communi- thropic career and her service on ties. the boards of the Association of William Fundraising Professionals, Greater Mitchell, retired Detroit Chapter, and Certified Fund founder of MB As- Raising Executive International. sociates and Suburban Collection, Troy: The chairman of the Outstanding Corporation Award board of direc- for years of sponsorship and sup- tors of Starfish port of local charitable events and Mitchell Family Services: the volunteer hours donated by The George W. owners David and Jennifer Fischer. Romney Award Derrick Coleman Foundation in for Lifetime Detroit: The Outstanding Founda- Achievement in tion Award in recognition of its Volunteerism. commitment to the advancement Joan Gehrke, and development of Detroit’s youth. special projects The Association of Fundraising manager for PVS Professionals, Greater Detroit Chemicals CEO Chapter, also plans to honor an ad- Jim Nicholson, ditional 80 to 100 volunteers from United Way for nonprofit agencies throughout Gehrke Southeastern Southeast Michigan. Michigan board member and chair of Tickets are $90. For more infor- its 2-1-1 health and human services mation, call (248) 478-6076. hotline program: The Jewel Award Sherri Begin: (313) 446-1694, for Outstanding Volunteer [email protected]
S3 Entertainment starts subsidiary Troy-based S3 Entertainment agency, Identity Marketing & Public Group L.L.C. has launched a sub- Relations in Bingham Farms. sidiary aimed at cataloging metro The company is seeking vehi- Detroit vehicles for potential use cles at least 15 years old that could in television and movies. be rented or bought for film use. Cars For Movies L.L.C. was at the S3 was formed this summer by Woodward Dream Cruise with a film- Jeff Spilman, a Michigan native transportation expert that collabo- with experience as an entertain- rated on the Clint Eastwood film ment attorney in Los Angeles, to “Gran Torino” being shot now in provide infrastructure and sup- Detroit. They signed up 300 cars. port services to the film industry “The firm will be identifying, under Michigan’s new movie in- taking photos and creating an in- centives, which reimburse film- ventory of unique cars available makers up to 42 percent of quali- for films and television projects,” fied production expenses in the according to information provided state. by S3’s outside public-relations — Bill Shea DETROIT BUSINESS MAIN 09-08-08 A 22 CDB 9/4/2008 4:16 PM Page 1
Page 22 CRAIN’S DETROIT BUSINESS September 8, 2008 Price to cut mercury emissions: $734 million
DTE projects that it would cost A 2004 report estimates that Utilities, manufacturers group balk at draft rules $205 million to install mercury- coal-fired Michigan power plants specific control technology on the contribute between 1 percent and 3 BY AMY LANE ends Oct. 17, they face utility con- move to reduce its release into the 20 coal-fired generating units in its percent of all mercury deposited in CAPITOL CORRESPONDENT cerns and continuing opposition atmosphere, where it can deposit fleet. Such equipment removes the state. The rest comes from non- from the Michigan Manufacturers As- into bodies of water and accumu- mercury from the flue gas that’s power plant sources in Michigan, LANSING — Michigan’s two sociation, which late in fish, is important. generated when boilers burn coal mercury sources outside Michi- largest utilities may need to spend says the mea- When consumed, mercury can to produce electricity. gan, and natural sources in North some $734 million to install equip- sures will result cause harm to nervous and repro- There also would be $36.5 mil- America and elsewhere, said the ment to comply with proposed new in higher elec- ductive systems, including physi- lion in additional annual operat- report, which was prepared for state regulations to reduce mer- ing and maintenance, or O&M, ex- the Palo Alto, Calif.-based Electric tricity rates and cal and developmental disabilities cury emissions in Michigan. pense. Detroit Edison annual rates Power Research Institute. unquantified, in fetuses and young children. The draft rules would require would need to rise by $65 million to Still, Michigan coal-fired elec- negligible gain. “We need to take this step,” said the Detroit Edison Co. and Consumers cover the combined capital and tric utilities are the largest unreg- “It’s an expen- Robert McCann, Michigan Depart- Energy Co., as well as other owners ment of Environmental Quality public- O&M costs of complying with the ulated mercury emitters in the diture that is of Michigan coal-fired electric information officer. “The technol- state mercury rule, Rogers said. state, representing about 57 per- not justified in a plants, to generally reduce mer- ogy exists to do this.” That’s in addition to DTE’s costs cent of all emissions from non-nat- cost-benefit cury emissions by 90 percent by Johnston The regulations would put of existing and future controls to ural sources, according to a 2005 2015 — a directive initiated by analysis,” said Mike Johnston, the Michigan in the company of states reduce emissions of sulfur dioxide, report presented to the DEQ. Gov. Jennifer Granholm in 2006 as MMA’s director of regulatory af- like Illinois, which in December nitrogen oxide and particulate McCann said the DEQ does not a means to help protect residents fairs. “What’s the environmental 2006 approved a rule requiring matter — controls that Rogers said expect that a new federal rule will and the environment from the benefit to be gained by whatever that state’s coal-fired power plants DTE expects also will reduce mer- “be in stark opposition” to Michi- harmful effects of the pollutant. we spend?” to reduce mercury emissions 90 cury sufficiently at some units but gan’s rules, and Michigan utilities But as the rules move through a State officials say mercury’s percent by 2015. But regulations will not be installed at all plants. will benefit by having already 60-day public comment period that dangers are well-known and any vary, and neighboring states Indi- Consumers Energy estimates it moved forward. ana and Ohio adopted rules based will need to spend $529 million by The DEQ estimates annual on a less-stringent federal model 2015 to install mercury-specific statewide compliance costs could that earlier this year was struck controls on 12 utility units. Added range from $11.4 million to $498 down by the U.S. Court of Appeals. annual O&M costs would be $55 million. The regulations would ap- MARKET PLACE One concern of Michigan utili- million. Combined, the utility pro- ply to 59 coal-fired corporate- and ties is that the state is moving jects it will need $125 million in ad- municipal-owned electric units. ahead with regulations that could ditional annual revenue over the A public hearing is scheduled ANNOUNCEMENTS & MISCELLANEOUS conflict with what ultimately is en- life of the equipment. Oct. 2. After the comment period SERVICES acted at the federal level. Michigan Lou Pocalujka, senior environ- closes, the DEQ will review sug- mental planner at Consumers En- gested changes and edit the rules. Central Place Planning might then need to reopen its regu- FILE STORAGE Professionals, LLC lation and rule-making process, or ergy, said Michigan would see The rules go through an adminis- • Urban Planning Consultation maximum benefit in mercury re- trative process and ultimately to Large scale (MAXI) storage units. Great for RV’s, the state could leave its own rule • Urban Design duction through a national rule. A the Legislature’s Joint Committee on boats, cars, warehousing. 14 x 14 door, heated, 24/7 • GIS Mapping unchanged and utilities would face entry, secured. Buy/Lease - I-94 & 26 Mile Area two contradictory sets of require- main reason is that the vast major- Administrative Rules, before being 800-945-5816/www.stclairstoragecondos.com 866-546-2722 www.CP3Plan.com ments, said Bill Rogers, senior ity of mercury deposited in Michi- filed with the secretary of state. FINANCIAL SERVICES technological specialist at Detroit gan comes from sources other than Amy Lane: (517) 371-5355, BUSINESS & Edison parent DTE Energy Co. the state’s coal-fired utilities. [email protected] COMMERCIAL LENDING Real Estate Loans $200K-$25 Mill INVESTMENTS Bank Turndowns Welcome, Lines Of Credit, Hard Money/Fast Closings BUSINESSES FOR SALE Call David 248-594-0100 or 248-763-1438 FOR SALE -SIGN MANUFACTURING BUSINESS CAPITAL AVAILABLE With All Equipment and trucks. Located in Royal Oak Twp. If you have an opportunity that requires Call Carl at 586-295-0008 funding but does not fit traditional WOOD SHOP FOR SALE Material cost hikes bring lawsuits banking parameters - contact us. We do 30,000 sq ft, 25 yrs in business. Manufactures not fund senior/mezzanine debt or cabinets, molding, wood paneling and finishing. working capital. We focus on special Ideal for contractor. $500K. Call 989-239-3666 BY RYAN BEENE Coupled Products components would be forced to situations with investment size ranging NATURAL GROCERIES & VITAMIN STORE CRAIN’S DETROIT BUSINESS shut down if Coupled Products stopped the flow of $500K to $10 million. Total FOR SALE BY OWNER committed capital of $100 million. We Call 586-945-3226 parts, causing “irreparable” harm to Mando. have an in-house legal team, can think Like nearly all automotive suppliers, Coupled Prod- Coupled Products disputed Mando’s claims. "outside the box" and act quickly. EQUIPMENT & ucts L.L.C. has been dealing with rapidly increasing The company counterargued that the case was Please refer to www.etccapital.com MERCHANDISE costs of steel, fuel, copper, petroleum-based resin and “only about money since Mando can pay the price in- or call 248-560-0203 ext. 101 other raw materials. for more information. creases and pursue damages in (a) lawsuit.” OFFICE FURNITURE And like many suppliers, the Rochester Hills-based Andrews ruled that Mando’s claims of risk of ir- company recently found itself in court with one of its reparable injury if GM shut down because Coupled INDUSTRIAL SERVICES MUST SELL, OFFICE CLOSED customers over a price dispute. Desks $99, Chairs $39, Files $49, Partitions $50, Products stopped shipping was “of its own doing, as Lateral Files $99, Cubicles, Office Phone Systems Plymouth-based Mando America Corp. asked a Cir- (Coupled Products) is willing to continue to supply Call (248) 548-6404 or (248) 474-3375. Established manufacturer cuit Court judge in Oakland County on Aug. 12 to (Mando) — as long as it accepts price increases.” force Coupled Products to continue to ship parts after has open stamping TELECOMMUNICATIONS Many suppliers have wound up in court after say- it said it planned to stop shipments if a price increase ing they planned to stop shipping parts because cus- (to 2200 Tons), welding, for parts sold to Mando was not granted. LUCENT . . . AVAYA. . . PARTNER. . . tomers rejected requests for price increases. tapping, and assembly MAGIX. . . VOIP. . .LEGEND . . . Judge Steven Andrews refused the request, saying MERLIN. . .SPIRIT Systems/Parts New/refurbished. For example, Plymouth-based Johnson Controls Inc. the contracts between the companies were unenforce- capacity. Omnicall Equipment Corp. (248) 848-9282 has filed seven lawsuits against suppliers asking for able, and that Mando had to pay the increase. WE HAVE USED PHONES price increases since July 8. Let us be your problem solver! Nortel, Lucent, phone systems. Almost any new or The court found the contracts unenforceable be- used phone available. Expert installation available. Fredric Smith, an attorney at Warner Norcross & Judd Call (248)548-6404 cause they lacked quantities. “The quantity term re- Please Reply To: mains uncertain because Mando agrees to purchase L.L.P. who has represented tier-two suppliers in simi- only as many parts as it chooses to purchase … this is lar disputes, says parts buyers generally have a one- Box# 10052 CD Crain Communication Call Us For Personalized in-five chance of a judge approving a temporary re- 1155 Gratiot Avenue Detroit, MI 48207 Service: (313) 446-6068 no promise at all and renders the purchase orders un- enforceable,” the judge ruled. straining order or injunction forcing a selling supplier to continue shipping parts. CLOSING TIMES: Monday 3 p.m., “The prevailing issue here is that the parties This may come as welcome news to tier-two suppli- LEGAL SERVICES one week prior to publication date. should spend time negotiating the contracts, especial- Please call us for holiday closing times. ly the quantity terms, and shouldn’t always rely on ers grappling with raw-material prices that have sky- rocketed since January, but Smith isn’t so sure. WE COLLECT MONEY JUDGMENTS! FAX: (313) 446-1757 standard form contracts which are one-sided and may become unenforceable,” said Dave Poirier, an attor- “It’s good news, except it’s not the job of the court to and Commercial/Consumer Bad Debts E-MAIL: [email protected] regulate these contracts,” he said. “The reason that Experts in Locating Assets INTERNET: www.crainsdetroit.com/classifieds ney at Jaffe, Raitt, Heuer & Weiss P.C., who argued Cou- Contingency Fee Basis pled Products’ case. injunctions aren’t granted is because injunctions re- LAW OFFICES OF L.J. FRANK, P.C. Confidential Reply Boxes Available The blanket purchase order, lacking any specified quire irreparable injury, or injury that could not be (248) 424-9777 or [email protected] compensated in money damages, and this is entirely collectionlaw-firm.com quantity of parts to be sold or bought, is standard in PAYMENT: All classified ads must be the auto industry. In these contracts, nearly all power about the money.” prepaid. Checks, money order or is concentrated with buyers, enabling them to cancel Pricing disputes end up in court because nobody VIDEOCONFERENCE SERVICES Crain’s credit approval accepted. Credit cards accepted. contracts at will and only obligating them to buy what wants to shoulder the burden of very high raw-mater- Complete Videoconference Services they say they want to. ial cost, such as steel, which in some cases has dou- Job Interviews, Legal Depositions, Business Meetings See Crainsdetroit.com/Classifieds Also, part of Mando’s argument was that three Gen- bled since January, he said. Convenient Troy Location, 3 Rooms, 1-200 Capacity Midwest Video 248-583-3632 www.midwestvideo.com for more classified advertisements eral Motors Corp. plants relying on Mando parts using Ryan Beene: (313) 446-0315, [email protected] DETROIT BUSINESS MAIN 09-08-08 A 23 CDB 9/4/2008 2:26 PM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 23 Sales slump, globalization claim white-collar auto jobs
BY DAVID BARKHOLZ tomotive Research in Ann Arbor. get ahead of potential tougher North America, or about 20 per- AND ROBERT SHEREFKIN 2008 WHITE-COLLAR CUTS U.S. engineers are losing out as times. BorgWarner, which makes cent of its salaried North Ameri- CRAIN NEWS SERVICE Ford Motor Co. and General Motors turbochargers and engine and can workforce. Salaried job cuts announced this year in North America Corp. locate global platform engi- transmission management sys- A few weeks later, during its White-collar automotive jobs at neering for their midsize cars in tems, is experiencing flat revenue Aug. 8 earnings call, company ex- General Motors Corp.: 5,000 suppliers and carmakers are dis- Europe and subcompacts in Asia, in North America and increases in ecutives announced that 3,000 lay- appearing by the thousands. Ford Motor Co.: 2,000 Cole said. Europe and Asia. offs, including the 600 reported Salaried autoworkers, like their Chrysler L.L.C.: 1,400 Ideally, North American engi- “We have to make sure we’re earlier, would take place by year blue-collar counterparts, are being Delphi Corp.: 600 neers would pick up work from right-sized for the business that we end. Axle-maker Dana did not whacked by collapsing North Dana Corp.: 600 overseas for large cars and light have here,” said David Peterson, break out the number of salaried American vehicle sales and the trucks, he said. But those are the BorgWarner manager for global and hourly worker cuts. American Axle and consolidation of engineering into Manufacturing Holdings: 350 segments suffering the most now branding and media relations. A supplier vice president who fewer centers with global responsi- from a consumer shift to more Market conditions prompted asked not to be named said his em- BorgWarner Inc.: 220 bility. fuel-efficient small cars, Cole said. Troy-based Delphi to announce 600 ployer has been selective with Visteon Corp.: 600* Each of the Detroit 3 has an- Even Auburn Hills-based Borg- U.S. salaried job cuts in its elec- salaried cuts. The company cut nounced significant white-collar *Not including Visteon workers leased to Warner, one of the most profitable tronics and safety division cen- employees in departments sup- Automotive Components Holdings Corp. job cuts this year, totaling about of the parts suppliers, is cutting tered around operations in Koko- porting North American lines of 8,400 positions. Inc. and American Axle & Manufactur- 1,000 North American jobs, includ- mo, Ind., said Delphi’s corporate business but spared salaried em- Several large suppliers also are ing Holdings Inc. ing 220 salaried positions. affairs manager Lindsey Williams. ployees working on global plat- cutting salaried workers to deal But there’s more to the cuts than The company is not only re- Dana Holding Corp. in Toledo an- forms for the same products, the with the sales slump. They include just bad U.S. business, said Dave sponding to the North American nounced in late July that it would source said. Delphi Corp., Lear Corp., BorgWarner Cole, chairman of the Center for Au- sales environment but trying to lay off 600 salaried workers in From Automotive News REAL ESTATE
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Page 24 CRAIN’S DETROIT BUSINESS September 8, 2008 Local firms make shopping an illuminating experience
BY NANCY KAFFER design the United Kingdom-based They got the job. CRAIN’S DETROIT BUSINESS airline’s New York terminal had Unless you work in retail, or come out of the blue. commission lighting schemes for It was a rainy day in New York British Airways execs had large projects, you might not have City, and Ken Nisch and Ron Har- learned of JGA through an article heard of Illuminating Concepts or wood were running late. in a Japanese magazine, leaving frequent collaborator JGA. Nisch, chairman of Southfield- the men little time to prepare. Nei- But nationally, the two busi- based retail design consultancy ther Harwood nor Nisch was ex- nesses have led the pack in retail JGA Inc., and Harwood, president of actly sure what kind of selling design and lighting for the past 10 Farmington Hills-based lighting points would find a warm recep- years. design firm Illuminating Concepts tion with the airline. Nisch and Harwood have devel- Inc., were en route to John F. “We talked about who we were oped a close relationship, parlay- Kennedy International Airport, ready and what we did,” Nisch said. “We ing local successes into high-pro- to pitch a job to British Airways. made a pitch, and the guys got on a file projects around the world. The call to make a bid to re- plane.” Illuminating Concepts had $15 million in revenue during the last fiscal year, according to Nick Priest, director of business and marketing development, and JGA CAREER MOVES brought in $7.4 million in fiscal 2007, said marketing director Mar- cy Goldstein. SALES Advertise your JGA’s client list reads like a di- SALES PROS WANTED goods and services in verse who’s who of American re- Six-figure potential tail: Borders Group Inc.’s concept No Travel Required 1-800-679-4356 ext. 2024 Crain’s Detroit Business stores, The Hershey Co.’s store in New York City’s Times Square, GENERAL Diesel, Godiva Chocolatier, Neiman Marcus, Hot Topic and Origins. DATA RESEARCHER - AUTOMOTIVE NEWS Illuminating Concepts’ resume AUTOMOTIVE NEWS-The newspaper of the automotive industry, this tabloid newsweekly is must is no less impressive, dotted with reading for North American car and truck manufacturers, their franchised dealers, and original- names like Detroit’s Compuware equipment suppliers. More than 50 editorial employees all over the world provide news and analysis for the new vehicle business. Founded in 1925, it is the only 100 percent paid-subscription publica- and Guardian buildings, the Chi- tion in the industry. nese Museum of Film in Beijing, Description of duties and responsibilities: Comerica Park and Wembley Stadium • Gather and compile automotive industry statistics and information for publication District in London. • Maintain various Excel- and Access-based databases Harwood is a music aficionado • Assist reporters and editors with data research requests and electrical engineer. Nisch was Skills and experience required: quick to see the growing possibili- GLENN TRIEST Illuminating Concepts’ Ron Harwood (left) and JGA’s Ken Nisch collaborated on • Proficient with all aspects of PC operation ties for retail design. the design at the Borders store in Ann Arbor. The two frequently work together • Proficient in Microsoft XP, Excel, Word and Access “Ken had a vision of where re- • Basic knowledge of HTML on retail design and lighting projects. • Strong attention to detail tail needs to be,” Harwood said. • Strong numerical aptitude “He was ahead of the pack.” • Excellent oral and written communication skills ments, telling the Warner Bros. strength, he said. • Pagination experience a plus, Quark preferred Back in the 1980s, JGA and Illu- story while selling branded goods. “Ken runs a good ship creative- • Strong proofreading and organizational skills minating Concepts were strictly Now defunct, the stores im- ly,” Sway said. “Because at the end Crain Communications offers a competitive salary, a generous benefits package, profit sharing, and a local firms, building their relation- mersed customers in the experi- of the day, that’s what we’re talk- friendly work environment. This is a great time to join our organization -- a profitable, well establish- ship while working the developing ence not just of the goods sold in ing about.” ed publishing leader. Orchard Lake corridor in the west- the stores, but in the Warner Bros. Both JGA and Illuminating Con- To apply for this position please visit our website at www.crain.com and search under the em- ern suburbs. JGA was founded in experience. cepts have built extensive studios ployment section. 1971; Illuminating Concepts start- The sky was the limit, but the with sample products, resources ed 10 years later. store design had to be replicable in and designs under development. The area was booming, strip malls of radically different sizes, Along the way, there have been SALES centers and residential develop- from New York to London to Tokyo. a couple of other innovations. ments rivaling each other. That’s part of what’s kept the Harwood holds a patent on a EDITORIAL INTERN- CRAIN’S DETROIT BUSINESS The companies had performed companies’ talents in demand. streetlight with a built-in speaker, some international work — the The complicated designs JGA installed at Greenfield Village and CRAIN’S DETROIT BUSINESS--Detroit’s leading weekly business publication for upper-level ex- aforementioned British Airways develops must be unique but cus- in downtown Detroit, as well as ecutives and business owners. Coverage: industry rankings, auto supplier news, non-auto manufac- turing, health care, commercial and industrial real estate, technology, small business, finance and job came through in 1988 — but it tomizable to fit a variety of spaces other locations across the nation "executive life" issues. Registered users enjoy free daily, weekly and breaking news e-mails. wasn’t until 1994 that a contact from the sprawling regional malls and worldwide. The company also Job Responsibilities: Nisch and Harwood had made paid of the United States to the more has developed a program capable off. The companies were tapped to compact retail spaces of Tokyo. of controlling the audio, lighting • Reporting work on the Warner Bros. concept • Writing Illuminating Concepts’ work is and water components of a design • Research stores, then the cutting edge of a challenging in a different way. The remotely, in an integrated format. • Other associated tasks new model: experiential retail. company has brought together a “Focus Lighting and Illuminat- Job Requirements: Because Warner Bros.’ back- slate of experts that previously, ing Concepts have a very similar ground was cinema, not tradition- Priest said, had to be contracted in- approach to offering not only light- • Candidates must be committed, responsible and highly organized • Position demands attention to detail and ability to work independently al retail, the company was open to dependently, and offers integrated ing design but extensive lighting • Similar previous internship or college newspaper writing experience combined with Journalism a more radical interpretation of lighting, water and audio design. equipment supply. But there are major required • Proficient Internet and PC skills (Microsoft Office Suite) a must the retail experience. Post-Warner Bros., both compa- few companies who provide such a • Excellent written and verbal communication skills “We had a company that nies built international portfolios diverse range of high quality sys- thought in terms of what it costs to and were in demand across the tems as Illuminating Concepts,” Crain Communications offers a competitive salary, a generous benefits package, profit sharing, and make a movie,” Nisch said. “We’d world. A slate of top-drawer pro- said Paul Gregory, president of a friendly work environment. This is a great time to join our organization -- a profitable, well show them something crazy and Urban Outfitters Plan- Focus Lighting established publishing leader. jects followed: , New York-based . they’d say, ‘We’ve got to have et Hollywood, Mac Cosmetics, Tommy “They do water fixtures, video, au- To apply for this position please visit our website at www.crain.com and search under the something crazier.’ ” employment section. Hilfiger. dio and lighting, providing the The stores were geared toward “We compete and fight like whole package for the forward- kids, but had to fit in a high-end re- tigers in this business,” said Rus- thinking client.” tail environment, next to prestige sell Sway, CEO of Atlanta-based R. As the retail market has soft- stores like Cartier and Armani, Sway Associates and chairman of ened in the U.S., the companies Nisch said. the Retail Design Institute, the in- have found markets overseas. Because Warner Bros. had dustry organization. “The world’s not broke,” Nisch decades worth of products, there But in a highly competitive mar- said. “Especially parts that are were lots to choose from in design- ket, he said, JGA stands out. pumping oil out of the ground.” ing the stores. “Ken does a lot of one-on-one About 15 percent of JGA’s work “We didn’t have to invent the marketing with retail executives, this year has been overseas, Gold- content,” Harwood said. “We had which is an essential in this busi- stein said, up from a more typical 5 to invent the way we got the con- ness,” Sway said. “A lot of firms percent to 10 percent. tent to the customer, without a don’t understand that. They’ll send Next year, she said, the compa- video screen.” a project director when they should ny is on track to hit 25 percent. The result was stores that incor- be sending a senior vice president.” Nancy Kaffer: (313) 446-0412, porated cinematic and retail ele- Marketing isn’t JGA’s only [email protected]. DETROIT BUSINESS MAIN 09-08-08 A 25,26 CDB 9/5/2008 6:07 PM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 25
After the plea deal Hearing upheld; plea anticipates lawsuits THE PLEA AGREEMENT A list of the pleas entered by Detroit Mayor Two interesting legal points justice charges. Thomas also noted Conyers’ Kwame Kilpatrick in Wayne County Circuit may have gone somewhat unno- REPORTER’S NOTEBOOK erratic behavior as a council- Court on Thursday: ticed in the swirl of action sur- woman, which has included re- Robert Ankeny Ⅲ Guilty to obstruction of justice. He was Monica Conyers: More than ferring to Cockrel as “Shrek” rounding Thursday’s guilty writes about the accused of firing Detroit Deputy Police Chief pleas by Mayor Kwame Kil- city of Detroit, just bad behavior? and being involved in a dispute Gary Brown as part of an patrick and his resignation. over hotel accommodations at Wayne County Lorna Thomas, a longtime effort to illegally hamper a The Michigan Supreme Court is- government, and the Democratic National Con- city resident and president of criminal investigation and sued two rulings that effectively law. Call (313) vention in Denver which led to Lorna Thomas M.D. P.C., a derma- committing perjury to hide upheld the decisions by a Michi- 446-0404 police being called. the firing of Brown or a or write tology practice in the Fisher gan Court of Appeals panel and by “I’m not a psychiatrist, and relationship between the bankeny Building, said she is fairly confi- Wayne County Circuit Court Judge that’s not my specialty, so I mayor and former Chief of @crain.com dent Ken Cockrel Jr. can take on Robert Ziolkowski that it was le- wouldn’t put a label on her,” she Staff Christine Beatty. the new duties of the mayor’s of- said. “But I did go to medical gal for Gov. Jennifer Granholm Robert Ankeny Ⅲ Guilty to obstruction of to conduct a removal hearing on fice, but is concerned about the school, and I think I have tection against self-incrimina- justice. The count was Kilpatrick, as requested by the leadership vacuum he leaves on enough training and experience tion in civil actions, while still the Detroit City Council. amended from the original Detroit City Council. to judge that least an evaluation charge of perjury in court. Kilpatrick allowing a conviction in the Cockrel’s departure passes Both the mayor’s lawyers and might be in order.” He was accused of lying under oath in criminal case, the same as a the mantle of president to City Granholm had asked the August 2007 by saying he didn’t fire Brown, guilty plea would. Council President Pro Tem Supreme Court to step in. But It’s pretty standard proce- didn’t know Brown was investigating him or Monica Conyers, who Thomas Worthy to speak Sept. 19 its inaction effectively left in dure in such circumstances, a rumored party at the mayor’s official believes is not qualified for the Wayne County Prosecutor place the Appeals and Circuit residence and testifying falsely as to other the judge noted. Kym Worthy plans to deliver a court decisions, which establish post. circumstances surrounding the termination talk titled “In Pursuit of Jus- some new precedent regarding a “I just don’t think anyone un- of Brown. Mayor’s PR team active der the cloud of an FBI investiga- tice” to the Women Officials’ Net- Michigan governor’s authority Ⅲ No contest to one count of assaulting or tion should be council presi- work on Sept. 19. to consider misconduct allega- While not showing up on the obstructing a police officer in the dent, because there is far too Worthy is scheduled to ad- tions and removal of an elected record with formal appearances furtherance of his duties in connection with much power and influence in dress the organization during a official, said William Goodman, Thursday, spin-mistress Judy a July 24 incident involving two officers attorney for the Detroit City that position,” said Thomas, breakfast meeting held by the Smith and her top aides from organization at the Doyle Cen- trying to serve a subpoena to a close friend Council in connection with the mother of state Sen. Buzz Washington, D.C.-based Impact ter for Profes- of the mayor. mayoral mess that arose out of Thomas, D-Detroit. “A person in Strategies L.L.C. were notably sional Devel- As a result of the pleas, the mayor agrees the whistle-blower case and the that position should be so present in Groner’s packed opment in to: text-message scandal. squeaky clean you couldn’t even courtroom for the plea hearings. Bloomfield The second legal issue, a begin to level an accusation Ⅲ Tender his resignation immediately. It During the more than one Hills. small one, was explained briefly against them.” will become effective Sept. 18, with hour of meetings in chambers Breakfast at the Thursday hearings by Conyers, wife of prominent Kenneth Cockrel Jr. taking office the next between various prosecutors, begins at Wayne County Circuit Judge U.S. Rep. John Conyers, D-De- day. defense attorneys and the judge, 7:30 a.m. David Groner, when Kilpatrick Smith repeatedly was seen troit, has been named by a for- Ⅲ Serve four months in jail. Admission is pleaded “no contest” instead of whispering to defense lawyer mer aide as a target in an ongo- Ⅲ Serve five years of probation. $20 for mem- guilty to assaulting an officer Juan Mateo and shuttling in ing FBI investigation of possible Ⅲ Pay $1 million in restitution over the Worthy bers and $25 trying to serve subpoenas. and out of the side anteroom, as bribes, related with the city’s probationary period. Kilpatrick’s state for nonmembers. To reserve, call Groner, along with both pros- were her colleagues Marcus sewage sludge contract with pension will go toward restitution. (248) 335-7637 or visit ecutor and defense lawyers, said Reed and Chris Garrett. Houston-based Synagro Technolo- Ⅲ Not run for any elected office for five www.womenofficialsnetwork. the plea acknowledged the pos- Smith had accompanied Kil- gies Inc. But Conyers’ attorney, years. sibility that a civil lawsuit could patrick on March 25 at his ar- Steve Fishman, has said such al- org. Ⅲ Surrender his license to practice law. follow. The “no contest” plea is raignment on perjury, official legations should be viewed with Reporter Chad Halcom supposed to give Kilpatrick pro- misconduct and obstruction of skepticism. contributed to this column. — The Associated Press
Cockrel: How long will he be the mayor? Biz asks: What about Jackson? ■ From Page 1 One key post of interest to the Detroit business com- munity is that held by George Jackson Jr., president seem sure to go. ments in a 1977 anti-pollution case, has duct business “behind closed doors.” and CEO of the Detroit Economic Growth Corp., the city’s Sharon McPhail, general counsel for been trying to make long-range plans “That is not to say I’ll have a press con- quasi-public development corporation. Kilpatrick, also doesn’t expect to stay. for improvements and governance of ference every day,” Cockrel said in a Jackson, recruited from DTE Energy Co. by Kilpatrick Outside Gov. Granholm’s hearing Crain’s the vast water system. phone interview later with . in 2002, issued a press release shortly after Kilpatrick’s room Thursday, McPhail told reporters “It would make the judge nervous to “That would probably take away too guilty pleas Thursday, saying the DEGC “expects a that her future was uncertain. “I don’t leave the department without a director much time from the work and valuable smooth transition to the new admin- know. I’ve got a few calls. We’ll see,” she or deputy director for too long,” said one meetings with grassroots and business istration.” said. veteran city administration official, communities.” Detroit City Council President Ken City law department director John speaking on a promise of anonymity. He repeated his concern about get- Cockrel Jr., who will take over as Johnson and city Treasurer Jeffrey “You can’t do wholesale changes and ting “a better understanding of the true mayor after Kilpatrick leaves office, Beasley, a Florida A&M University frater- get rid of everybody,” the official said. financial state of the city.” said he has enjoyed working with nity brother of Kilpatrick, are not like- “To be successful for the short run, Cockrel said the City Council “does Jackson. “He brings a lot to the job, ly to be retained by Cockrel. he’ll need to keep some key people, and not have a clear picture right now be- and I have quite a bit of respect for Kilpatrick’s deputy mayor, Kandia only get rid of the usual suspects.” cause of the absence of a current Com- him. He said he wants to be working Milton, and his PR staff, headed by Those are believed to include many prehensive Annual Financial Report.” with me in the future, but I am reluc- press secretary Denise Tolliver and friends and relatives of Kilpatrick who The CAFR for the year ending June 30, tant to make any announcements Jackson deputy press secretary James Canning, were listed in a May 10 Detroit Free Press 2007, is now eight months late. about department heads until after also are expected to be casualties of the article that named 29 people with close “That impacts our ability to access (Sept.) 19th.” changeover. connections to the mayor, eight of his rel- revenue sharing, hampers our dealing Jackson said he was “grateful for the opportunity Former Deputy Mayor Anthony atives and two of Christine Beatty’s, Kil- with bond-rating agencies, and is impor- (Kilpatrick) gave me to be an instrumental part of the Adams, current interim head of the De- patrick’s former chief of staff who also tant on a host of different levels,” he said. greatest redevelopment of Detroit in the last 50 years. troit Water and Sewerage Department, faces perjury and obstruction of justice Although Kilpatrick continues as At his best, Kilpatrick could eloquently express a vision also is likely to be replaced. charges. mayor until Sept. 18, both he and Cock- for … Detroit, and when he did, he was a tremendous Getting permanent leadership for that Cockrel said he is reviewing a list of rel have said that both sides are taking salesman for the revival of our city.” controversial multimillion-dollar opera- appointees and feels “it can be shrunk a necessary steps for a smooth transition. Jackson said Kilpatrick gave DEGC a free hand to tion has to be high on Cockrel’s “to-do” little bit.” Some first steps in the transition oc- manage what has amounted to a $6 billion economic de- list. All personnel changes are works in cured almost automatically. velopment program. Both of DWSD’s top two professional progress, with reviews being done on a Before noon Thursday, after Kil- “As Kilpatrick leaves office, I hope … he can learn managers, director Victor Mercado and case-by-case basis, he said. patrick had pleaded guilty around 10:45 from his mistakes and redevelop his own life with the the longtime deputy director Gary Fuji- Cockrel vowed in a brief press con- a.m., steps were taken to set up an exec- same kind of resolve he had supporting the redevelop- ta, left earlier this year. ference last Thursday to “take specific utive protection (bodyguard) unit for ment of the city he loves,” Jackson said. “I have confi- U.S. District Judge John Feikens, steps” to have an open and transparent Cockrel as the new mayor. dence that the momentum we have gained will not who has had oversight of DWSD for operation, to meet with media and the Robert Ankeny: (313) 446-0404, change under a new administration.” more than 30 years under consent judg- community frequently rather than con- [email protected] — Robert Ankeny DETROIT BUSINESS MAIN 09-08-08 A 25,26 CDB 9/5/2008 5:33 PM Page 2
Page 26 CRAIN’S DETROIT BUSINESS September 8, 2008
After the plea deal Businesspeople: Cockrel must stress ethics,finances
hen City Council Presi- dent Ken Cockrel Jr. be- From crainsdetroit.com comes interim mayor W on Sept. 19, what should Re: The next mayor neighborhoods in the central his priorities be? city area. It should also bring According to businesspeople inter- The following is a sampling in representation from the viewed by Crain’s Detroit Business, of Web comments about what Arabic-speaking and Hispan- the priorities should be restoring Ken Cockrel Jr.’s priorities ic communities. This plan public confidence in city govern- should be as interim mayor: should then be published and ment, focusing on sound fiscal man- in-progress metrics toward Mayor Cockrel should agement and working with the busi- success reported. make ethical behavior and ac- ness community on redevelopment I would be open to serving projects, among others. countability for results the on such a committee to articu- priority of his administra- late a plan. tion. He can do this by ap- Donald Hart Restore confidence pointing the best people, President “Restoring confidence in having rather than the ‘best friends’ Move Communications an ethical and high-integrity admin- as Kilpatrick did. Mayor Ann Arbor istration is probably most impor- Cockrel should also throw his tant” for city government to do, said support behind the League of Doug Rothwell, president of Detroit Re- Women Voters initiative to The new mayor should con- naissance Inc. REBECCA COOK replace the totally at-large centrate on the following pri- Rothwell said, “that includes con- Restoring public confidence in government is a task the future mayor must complete. orities: City Council with council dis- Ⅲ tinuing a lot of the work that’s gone Restore political cohesion said the new administration should tricts. When everyone repre- Root out corruption in on downtown, but also expanding improve neighborhoods and encour- sents you, no one does. the city purchasing depart- that out to the neighborhoods.” Irv Reid, former president of Wayne age businesses to move downtown. Mayor Cockrel has a ment where business is Rothwell said the business com- State University, said Cockrel’s chal- unique opportunity to right steered to suppliers who are munity has been frustrated because lenge as the next mayor will be to re- Commit to honesty our collective ship. I hope he politically connected to City the scandal has “disrupted the mo- store political “cohesion” that is cru- acts swiftly. Hall but whose bids for city mentum we had” on redevelopment. cial for making economic progress. Debbie Lantzy-Talpos, Aetna’s Michi- Thomas Page contracts are not the most gan market head, said Cockrel can Member, Brush Park Citizens competitive among bidders. Look at city land bank Issues are clear help restore faith in government un- District Council Ⅲ Establish an effective, til a new mayor is elected by “com- Detroit comprehensive and transpar- Rich Homberg, president and general Foreclosed residential properties mitting to hon- ent ethics code for all city de- in Detroit are a growing problem manager of Detroit Public Television said esty, openness and Our new mayor needs to ad- partments and branches of that will need more attention from the new mayor integrity … every dress the corruption that ex- city government — including future administrations, said Bernie must focus on the single day.” ists within the city govern- City Council. This ethics code Glieberman, president and CEO of economy, educa- Lantzy-Talpos ment. Get rid of patronage must be formulated by getting Novi-based Crosswinds Communities tion and health added: “For the and nepotism and place high- input from the business com- Inc., which has developed several care. long run, we need ly qualified individuals in re- residential projects in Detroit. “The issues are a Mother Teresa of munity and church leaders. Lantzy-Talpos One solution for Cockrel is to look absolutely clear, politics. There sponsible positions. Ⅲ Restart the negotiations the work will be in- Gary Lockridge with stakeholders to get a deal at the city of Detroit’s land bank and Homberg should be no doubt that the mayor operate it as efficiently as Wayne credibly hard and has the people’s best interest at Federal-Mogul Corp. done to expand Cobo Center County’s, he said. the distractions, political noise and heart.” Manager, North American without delay. conflicts only get in our way,” Real Estate Start now!! Rebuild relationships Homberg said. Southfield Christopher Bolton Develop 100-day plan President Jon Barfield, chairman and president Van Conway, senior managing di- Mr. Cockrel’s focus should ISU/Bolton & Co. of the Livonia-based staffing and hu- Replace cronies rector with Conway MacKenzie & Dun- be on healing this community Bloomfield Hills man services firm Bryon Perry, a Detroit native and leavy, a turnaround firm in Birming- and ensuring that he builds a The Bartech Group head of BP Marketing Consultants in ham, said Cockrel should develop a good working relationship Inc., said Cockrel Ⅲ Get rid of wasteful, ineffi- Birmingham, said Cockrel should re- 100-day plan to implement short- with the council. He knows also should focus place Kilpatrick cronies. Kilpatrick cient city jobs by eliminating term changes. from his experiences there on rebuilding the has more than 100 appointees work- approximately 40 percent of “We use this concept when a com- that it is imperative for the strained relation- ing for the city. the city employees, but not po- pany is acquired and a new manage- mayor and the council to have ship between the “There are many who will step up lice or fire. ment team is installed and report a shared vision for this city to public and private to the plate,” Perry said. “Due to the Ⅲ Delineate distinct bound- Barfield weekly on the variances,” Conway move forward. sectors. Kilpatrick machine, many have been aries for City Council mem- said. As part of the plan, the city Lydia Meyers Cockrel should “implement pro- hesitant due to guilt by association.” bers so all parts of city are should develop five top economic ini- Independent Consultant investment tax strategies to expand fairly represented. tiatives that could include address- Detroit existing businesses and attract new Ⅲ Allow those who work in Highlight quality of life ing the budget shortfall. businesses to the city,” Barfield said. Detroit, paying city income To foster real estate investment, My hope is that the interim taxes, to vote for the mayor Cockrel should highlight quality-of- mayor and new permanent Push regional solutions Refocus business community and council members. This life issues that are critical to keeping mayor will focus more on the would be taxation with repre- Richard Blouse, CEO of the Detroit and expanding the number of resi- Dan Gilbert, chairman of Livonia- neighborhoods, i.e., demolish sentation, which we fought a Regional Chamber, said Cockrel dents living downtown, said Sue Mo- based Quicken Loans Inc., said Cockrel abandoned buildings and should find a regional solution for sey, president of the University Cultural can help to refocus the business com- homes, and (put) more visible war for in 1776. Cobo Hall, push for regional transit Center Association, a group which munity on major challenges facing police on the streets. Ⅲ Allow each council per- and balance the city budget. promotes development in the Mid- downtown. Joyce Bray son a maximum of one paid town area of Detroit. “We look forward to working with Executive Assistant staff member Building parking facilities, im- the new mayor, as well as City Coun- Restore government Wayne State University School Ⅲ Cut waste and inefficien- proving streets, focusing on green- cil and other community leaders on cy wherever it is found, save “Mayor Cockrel needs to restore of Business Administration way systems and enforcing the zon- Quicken Loans’ move to downtown money, outsource wherever the effective working of city govern- ing ordinances are small yet and other Detroit 2.0 initiatives.” I think he needs to focus on possible. ment at all levels,” said Steven D’Arcy, important issues, she said. Ⅲ partner in charge of global automo- a citywide plan that is devel- Sell all the municipal tive products at PricewaterhouseCoop- Persevere oped in collaboration with De- parking facilities at auction to the highest bidders so that ers in Detroit and chairman of Detroit Launch image campaign Christopher Ilitch, CEO of Ilitch Hold- troit Renaissance that will ar- these buildings start paying Medical Center. “This begins with Ed Deeb, president of the Michigan ings Inc., said Detroit is a caring com- ticulate where we want to be providing clear direction and leader- Business and Professional Association in munity that will overcome the last in five and 10 years. This plan property taxes and are no ship to each city department.” Warren, and Jennifer Kluge, execu- difficult days of the Kilpatrick ad- should focus on business de- longer taxpayer-subsidized Despite fallout from the Kilpatrick tive vice president, said Cockrel ministration. velopment, green space allo- burdens. scandal, D’Arcy said the leaders of should immediately mount a national “I am confident we can — and will cations, education turn- James N. Miller the city are resilient. “The city will image campaign that portrays Detroit — persevere and continuously im- around, recruitment of young President recover and our progress will contin- as the “diversity capital of the world.” prove to make this a better place for professionals to the loft hous- Miller Parking Co. L.L.C. ue,” he said. In a joint statement, Deeb and Kluge all,” Ilitch said. ing areas and cultivating Detroit DETROIT BUSINESS MAIN 09-08-08 A 27 CDB 9/5/2008 5:40 PM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 27
After the plea deal Hearings spark talk of Media coverage mostly praised
BY BILL SHEA story and it needed to be covered in a big CRAIN’S DETROIT BUSINESS way,” said Jeff Caponigro, president and CEO of Southfield-based Caponigro Public judgeship for Granholm Media coverage of Kwame Kilpatrick’s Relations Inc. tribulations last week drew mostly praise What stuck out in Caponigro’s mind was LANSING – The spotlight has faded from for her at the federal level, they would have from industry observers — and from the Gov. Jennifer Granholm’s hearing on re- paid attention to that, absolutely. They the almost-instant availability of news on- media itself. line, and he noted that the Internet levels moving Mayor Kwame Kilpatrick, but her know what’s going on in Detroit.” “It’s been thoroughly covered, and over- performance could serve her well in the fu- Rustem said he was struck by the playing field for broadcast and print covered, by media looking for extra an- media. “Radio and TV, and then a story ture, say Capitol observers. Granholm’s command of legal language and gles,” said Ben Burns, director of the jour- They say a state or federal judgeship concepts during the hearing. “She obviously next day in the paper, is clearly a thing of nalism program at Wayne State University the past,” he said. might not be a stretch for Granholm to con- knows what she’s doing in a courtroom.” since 1993 and former executive editor at sider in the wake of Bill Ballenger, editor of the Lansing-based Tom Nixon, a principal at Identity Market- The Detroit News. “When you get such a gi- her handling of the Inside Michigan Politics newsletter, said a ing & Public Relations L.L.C., Bingham ant story, you’re always going to get some hearing. Her legal cre- judgeship “is much more in keeping with her Farms, said Kilpatrick’s attacks on the me- Capitol overkill, such as parking on the lawn of the dentials and back- abilities. Intellectually, she’s a very bright dia stem from his attempts to play to sup- Manoogian Mansion.” Briefings ground include serv- person. I think people tend to think she’s fair- porters. What the coverage also illustrated, at ing as a federal minded and judicious in her temperament, “Was it a media circus? Kind of, but it’s prosecutor in Detroit, generally speaking, as a governor. least for the newspapers, is that they can because of the administration’s mishan- Wayne County corpo- “And this does seem to demonstrate that flex their muscles despites cutbacks, dling,” he said, adding that the mayor nev- ration counsel, and she does have judicial qualities.” Burns said. Both dailies have lost staff and er had a consistent message or media strat- Michigan attorney Also evident is that Granholm came out of resources to corporate belt-tightening in egy. general. the hearing better than she might have if the recent years, matching an industry trend. It wasn’t a cheap story to cover, for a For now, though, proceedings had run their course. “They showed that even in perilous cash-strapped industry. Granholm’s not talk- “I think she’s fortunate that they reached times, in terms of the daily newspaper pub- “News outlets spent a lot of money this Amy Lane ing future aspirations. the plea bargain when they did, and she did- lication business, they can still do an awful week,” said Matt Friedman, co-founder of “The governor is fo- n’t have to continue on with a hearing,” Bal- lot of good work,” Burns said. Farmington Hills-based public-relations cused on being governor and working to lenger said. “Whatever her verdict might Kilpatrick has lashed out against the me- agency Tanner Friedman. “Broadcasters move the state forward and to advance her have been, assuming it went against the may- dia in speeches and interviews, calling it gave up a lot of advertising for wall-to-wall agenda,” said Press Secretary Liz Boyd. or, that might have been contested in court, unfair and vendetta-driven. coverage. There was overtime and engi- At the hearing, Granholm was dedicated which could have been messy.” Paul Anger, Detroit Free Press vice presi- neering. This was an expensive week to de- to addressing “the challenge and the situa- Granholm “could have looked powerless dent and editor, dismissed the mayor’s liver the product to the customer.” tion that had been presented her,” Boyd and feckless after having gone through this” criticism of the coverage. The newspaper What impressed Friedman most was the said. and not have her decree upheld, Ballenger broke the story in January. handling of the myriad aspects of the Kil- “It was a little bit of uncharted waters, so said. “So I think she dodged a bullet there.” “I think we left that patrick drama. it was very important that that responsibili- The governor could get credit for moving behind a long time ago “Overall, the media in this town did an ty be carried out in an appropriate way and ahead with a hearing that may have influ- as it became completely extraordinary job covering what ended up that the mayor had an opportunity to ad- enced reaching a plea bargain, but she also clear our reporting was being a lot more complex series of stories dress the charges that had been levied may face resentment from Detroiters who fair and accurate, we than anybody expected. This is a story against him by city council,” Boyd said. view her as “intruding in Detroit’s affairs,” were civil and responsi- with a lot of things happening simultane- “The governor was so focused on doing Ballenger said. ble, and aggressive. We ously in a lot of different places.” her job, she wasn’t focused on interviewing Rustem said that if the hearing had pro- let the facts stand for Marla Drutz, general manager and vice for a job.” ceeded and Granholm had “made a decision themselves,” he said. “I president of Detroit NBC affiliate WDIV- Bill Rustem, president and CEO of non- either way, there were going to be people think it’s clear there’s Channel 4, said her entire newsroom was partisan Lansing think-tank Public Sector mad at her.” no vendetta here. It’s a on the story Wednesday and Thursday and Anger Consultants Inc., said Granholm’s “certainly He said Granholm now needs to show soli- case of the mayor get- that every station car and truck was gone capable” of a job in the state or federal judi- darity with incoming mayor and Detroit City ting himself in trouble.” when she got to work. ciary. Council President Ken Cockrel Jr., demon- However, Anger said: “We take no glee “The only thing in my mind that comes He and others said that if Barack Obama strating that they are partners in helping the in (Kilpatrick’s resignation). This is a close are the major national stories,” she wins in November, that could produce op- city move forward. tough time for Detroit. We’re in Detroit.” said, adding that the drama reminds her of portunities. Boyd said Granholm spoke with Cockrel Those who work in media relations President Nixon’s resignation in August But will anybody really remember her after Kilpatrick entered his guilty plea and closely watched the Kilpatrick coverage. 1974. brief but historic Kilpatrick hearing? resignation and “pledged the state’s coopera- “I was impressed with the comprehen- “We’re watching history right now,” she “The general populous won’t, the lawyer- tion and willingness to work with the city.” siveness of the coverage. I didn’t get a said. ing community will,” Rustem said. “Should She said the two may meet soon. sense it was sensationalized. Maybe I’m in Bill Shea: (313) 446-1626, Obama win, (and) that’s the determination Amy Lane: (517) 371-5355, [email protected] the minority on that, but this was a huge [email protected] Financing changes may squeeze cash flow of some Chrysler dealers
BY NANCY KAFFER and a graduated fee structure that hand, Holmyard said. thing to do. The fresher the inven- stocks 100-120 new cars in their in- CRAIN’S DETROIT BUSINESS will require dealers to pay extra “Most dealers have less than a tory, the easier it is to sell it, and ventory, it will cost somewhere charges for older, unsold vehicles, half-dozen cars of the prior model right now they’re giving us incen- from $50,000 to $75,000 more a year A month after Chrysler Financial starting Jan. 1. year in their inventory at the end tives to help us move inventory.” for every 1 percent increase.” L.L.C. terminated its lease pro- “In a nutshell, Chrysler Finan- of the year, so, again, that will not Tony Viviano, chairman of Ster- For most dealers, profits won’t gram, the waters haven’t quite cial is turning to financing dealer have that big of an effect on the ling Heights Dodge, said new dealers be impacted, Holmyard said — just smoothed for the metro area’s inventories in a way that’s very cash flow of a dealership,” he said. without a stable base would be cash flow. Chrysler L.L.C. dealers. similar to banks,” said Cliff Holm- That the new requirements more vulnerable to such changes. Hoot McInerney, owner of Area dealers report a slow Au- yard, a principal with The Rehmann don’t take effect until Jan. 1 should “This is to do with the wholesale, Southfield-based Star Lincoln-Mer- gust, mirroring the company’s 34 Group, a Troy-based CPA and con- give dealers room to maneuver, which is to do with our floorplan cury, said that additional costs can percent drop in sales reported last sulting firm specializing in retail Holmyard said. Chrysler also re- (vehicles in inventory), and a lot of play havoc with a dealer’s sales week. automotive dealers. cently announced dealer incen- banks won’t even look at you for strategy. But it’s unclear what impact Most banks, he said, require tives for older-inventory sales. that,” he said. “Chrysler had it at a McInerney said his dealership’s changes to the way the lending dealers to begin paying down in- Bill Golling, president-owner of very, very low rate, and I think they floorplan is self-financed. arm of the automaker handles its ventory older than 180 days. Bloomfield Hills-based Golling were losing money on it. It’s a ser- “That’s how you get one up on wholesale financing, coupled with “Most dealers who are good Chrysler Jeep Dodge, said he’s not vice they’re trying to give to the your competition,” he said. “Peo- fees for older inventory, could managers of inventory have a 60- alarmed by the news. The fees for dealers. … It’s going to cost us ple may sort of forget all that, but have on dealerships’ cash flow. or 90-days-and-out policy for used aging inventory, he said, have long maybe a quarter of a point, but say you’re down the street in a The changes are detailed in a vehicles — after more than 60 or 90 been on the books but are often un- what everybody’s doing is reducing brand-new building that costs Chrysler Financial memo signed days, it has to be taken to auction enforced. inventory. Take some of these $80,000 a month and my building is by CEO Tom Gilman dated Aug. 27 and wholesaled,” he said. “Having “The rates going up reflect the younger guys at some of these small paid off, I’ve got an $80,000 jump on and obtained by Automotive News, to pay them off after 180 days for increase in the cost of money, and places, this going to hurt them.” you. (Cars) all cost us the same, it’s a sister publication of Crain’s De- used cars will not have much of an that’s not anything uncommon,” Holmyard said that much de- what it costs you to sell the car. troit Business. effect on most dealers.” he said. “As far as older invento- pends on how much Chrysler Fi- That’s how we beat one another.” Included are a wholesale financ- And most dealers don’t keep ries, they’re looking to help us not nancial increases rates. Nancy Kaffer: (313) 446-0412, ing rate increase, effective Oct. 1, much new-but-aging inventory on have old cars, and that’s the right “For the typical dealer that [email protected]. DETROIT BUSINESS MAIN 09-08-08 A 28 CDB 9/5/2008 5:34 PM Page 1
Page 28 CRAIN’S DETROIT BUSINESS September 8, 2008 MBT bill drops sharply; game-maker to stay in state
BY CHAD HALCOM Tax, which MBT replaced. concerns in recent months, said ing the annual Penny Arcade Expo in CRAIN’S DETROIT BUSINESS “That’s still a huge change for us, the company was taking a very Seattle Aug. 29-31 to unveil and and we believe that’s not the final Also helping the conservative approach at first in promote “Demigod,” a GPG-creat- Plymouth Township-based PC figure. But it’s getting much bet- assessing its tax burden under ed game Stardock plans to distrib- gaming and software publisher ter,” he said. “And it’s into a range company is a tax MBT; the MEDC helped explain Stardock Corp. likely will remain in ute and market in February as a now where we’re not happy; but the tax to Stardock, she said. Michigan after some accounting incentive to expand third-party publisher. when you weigh it against the con- Bridget Beckman, public- changes and In June, Wardell said Stardock siderable expense of moving, there information officer for MEDC, con- talks with gov- its Plymouth offices. was considering moving to Red- ernment offi- isn’t as much incentive to leave.” firmed that MEDC has had recent mond to share space with a compa- cials helped low- The company recently switched percent of that comes through on- talks with Stardock, but she would ny it is in talks to acquire, unless it to Southfield-based Plante & Moran not elaborate on them. er a tax estimate line purchases and product down- could resolve the MBT issue by P.L.L.C. as its accounting firm and Also helping the company, from earlier this loads. this fall. He said last week that ac- held several consultations in the Mullin said, is a tax incentive to year. “In e-commerce, our servers are quisition is still under negotiation, last few months with the Michigan expand its Plymouth offices under Brad Wardell, here at our (headquarters) in Ply- and he could not confirm whether Economic Development Corp. and the mouth, so we were originally told the county’s Transforming Urban president and GPG is the target company. Wayne County executive’s office to interpret those transactions like Residential & Business Opportunities CEO of Star- Under the county incentives, dock, said last about incentives to grow its Michi- the buyer came here to visit a store program. Wardell said the compa- Wardell Stardock could obtain exemption week a “changed interpretation” gan presence and how to reduce or and made their purchase. But we ny is undertaking a 12,000-square- from local property taxes during of the company’s liability under offset its tax burden. don’t have a storefront,” he said. foot expansion to accommodate the new Michigan Business Tax One of the most pivotal changes, “Now we look at where the buyer growth and possibly some limited June-December next year if the ex- means the bill likely falls to some- Wardell said, is calculating the is located. And I’d estimate 1 per- relocation from a pending acquisi- pansion proceeds on schedule, fol- where around $10,000 for six portion of the company’s gross re- cent or less of revenue is e-com- tion. Stardock has 55 employees in lowed by payments to reimburse months. In early June, the compa- ceipts that are subject to MBT. merce from Michigan residents.” Michigan. up to 50 percent of its taxes for the ny was expecting to pay $168,000 Stardock predicts its revenue Assistant Wayne County Execu- Wardell and Chris Taylor, CEO following five years, Mullin said. for calendar year 2008, compared could approach $18 million this tive Turkia Mullin, who has of Redmond, Wash.-based Gas Pow- Chad Halcom: (313) 446-6796, to $1,200 under the Single Business calendar year and more than 40 worked with Stardock on its tax ered Games, appeared together dur- [email protected]
Unemployment fund: Higher taxes? Bazaar: Marketplace ■ From Page 1 is likely to automatically rise, to repay loan principal. 5.6 percent to 7.2 percent. to open at center The taxes are looming because the state appears to be During the same period, Michigan’s rate rose from 7.1 reaching the point where it can no longer readily repay percent to 8.5 percent. ■ From Page 3 federal loans out of the employer taxes it collects. Through July, initial benefit claims in Michigan are up The state repaid $165.8 million that it borrowed in 2006, about 9 percent over the same period last year. Kefallinos, who is a native of Zakynthos, a western Greek is- $637 million that it borrowed in 2007 and a large amount of Geskey said high unemployment and the number of peo- land. the $837.7 million borrowed in 2008. But a $255.3 million ple receiving benefits is a substantial factor in the trust For Marlon Campbell, owner of custom printing company outstanding loan balance remains, and the state may need fund’s condition, but he also said that previous tax reduc- Magician’s Ink, the bazaar is a good way to attract new to borrow even more money before the year ends. tions, including measures enacted in 2002, are having an clients. The recent spate of federal borrowing is the state’s first effect. The 2002 legislation lowered the taxable wage base Campbell sells customized T-shirts, mugs, hats and the since 1993 and was spurred by Michigan’s high unemploy- from the first $9,500 of an employee’s wages to the first like at a West Chicago Road storefront in Detroit and at the ment rate and other factors that result in the state paying $9,000. However, the law also increased the maximum Gibraltar Trade Center in Taylor. more in worker benefits than it’s collecting in employer weekly benefit from $300 to $362, among many provisions. “At a bazaar like this you’ll get people from everywhere,” taxes. Geskey said the cumulative effect of negative-balance he said. “People driving along I-75 might want to take a look. The Michigan Unemployment Insurance employers is also a factor in the trust fund’s falling bal- That’s how I get a lot of business from the Gibraltar Trade Trust Fund balance has dropped steadily ance. Those employers, which have paid less into the trust Center.” since 2000, when more than $3 billion fund than the fund has paid out to their workers, represent Campbell said he also plans to open a hot dog stand in the was available to pay benefits. In 2007, it a combined value of more than $4 billion. bazaar. ended the year with $2.8 million avail- Negative-balance employers make up about 34,000 of the Carol Bernert is another veteran of the Gibraltar Trade able. As of last week, it had $34.1 million approximately 223,000 Michigan employers that pay UI tax- Center, where she’s sold such snacks as roasted almonds in its coffers. es, and they are the ones that will be assessed the state sol- and Amish jerky for 15 years. She’s planning to open a De- “The unemployment compensation vency tax that’s likely in January. These employers can troit branch of her business, Circus Treats, in the bazaar. system is not in jeopardy. We will con- avoid the solvency tax by paying the amount of their nega- Bernert said she’s heard good things about the way Ke- tinue to make payments when due as tive balances, bringing their balances to zero. fallinos treated tenants and said that, as a Detroit resident, required. But we are kind of in a recur- Geskey The solvency tax is expected to annually generate she’d long wanted to do business in the city. ring situation with the federal government, to receive about $46 million and will be used to repay interest on The stall rental’s reasonable rates were attractive to loans to assist us in making benefit payments,” said the federal loans. Charvette Williams of Detroit Lovely Cuts. Stephen Geskey, director of the Michigan Unemployment In- In addition, if Michigan or any other state has an out- Williams, a stylist, said Detroit Lovely Cuts will operate surance Agency. standing loan balance for two consecutive years, there is in the bazaar as a full-service salon, offering hair cuts, mani- Nationally, the Department of Labor’s Office of Work- an automatic increase in the federal unemployment tax cures and pedicures as well as other standard salon services. force Security projects that states’ trust fund borrowing that all employers pay. That could po- “I know there will be constant traffic,” she said. from the federal government will increase over the next tentially affect Michigan employers in Kefallinos plans to add another 130 stalls before Christ- few years due to higher projected outlays. Projections call 2010, and the tax would continue to in- mas. And if all goes well, he’ll move into the upper story next for trust fund outlays to exceed revenue and interest in- crease each year the state has an out- year, with about 300 additional stalls. come by nearly $2.5 billion in the current fiscal year and standing federal loan balance. He’s also preparing to build out more of the center’s un- $4.9 billion in fiscal 2009. Those tax prospects don’t sit well with used space, adding 60 new working studios from 1,000 square On average, according to the DOL, states have trust business advocates like Charlie Owens, feet to 5,000 square feet. fund balances 40 percent lower than before the 2001 reces- director of the National Federation of Inde- Rents have historically ranged $1-$4 per square foot, with sion, in which seven states borrowed. The Federal Adviso- pendent Business-Michigan. lower cost per square foot for larger spaces, he said. ry Council on Unemployment Compensation recommends “Given our current economic situa- Kefallinos said he conceived the Russell Bazaar as a high- er-end product, a marketplace that could work hand-in-hand that states have one year’s worth of recession-level bene- Owens tion, this couldn’t come at a worse time,” fits in their trust funds; as of the end of 2007, two thirds of Owens said. with the artists the complex houses. the states fell below that level. He said “it is inappropriate to expect employers to pay in- “The idea is people who are in the building starting off can Michigan currently is the only state with outstanding creased taxes without corresponding reforms in the UI sys- bring items down and sell them before they’re dry,” he said. federal loans. tem,” such as instituting a “waiting week” before new un- But it’s unclear whether the current tenant mix will “We’ve had some unique challenges here, and chal- employment filers can draw their first checks, freezing achieve that goal. Only a few have expressed interest in the lenges that have been continuing for longer than a lot of benefits or tightening criteria by which workers qualify for bazaar, he said. us would like,”Geskey said. benefits. Kefallinos said he plans to aggressively monitor the mix, While Michigan’s unemployment rate has been the In 1982, as higher federal taxes kicked in to accelerate re- with an eye toward selecting tenants who fit in a higher-end highest in the nation since March 2006, some other large payment of federal loans at that time, the Legislature environment. But the jury’s still out among current tenants states have experienced notable increases over the past raised employer tax rates and created the solvency tax, but of the center, he said. year. From July 2007 to July 2008, Illinois’ jobless rate rose also tightened benefit eligibility requirements and made “Some tenants think it’s a good idea, some think it’s a bad from 5.1 percent to 7.3 percent, while Florida’s rate rose other benefit-related changes as part of a broad effort to re- idea,” he said. “At the end of the day, the people will tell (if from 4.1 percent to 6.1 percent, California’s rate climbed store trust fund solvency. it’s been a success).” from 5.4 percent to 7.3 percent, and Ohio’s rate rose from Amy Lane: (517) 371-5355, [email protected] Nancy Kaffer: (313) 446-0412, [email protected]. DETROIT BUSINESS MAIN 09-08-08 A 29 CDB 9/5/2008 5:35 PM Page 1
September 8, 2008 CRAIN’S DETROIT BUSINESS Page 29 ESD: Announces programs for young engineers www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Trudell, executive director of ESD. ployees today, he said. EXECUTIVE EDITOR Cindy Goodaker, (313) 446- “ESD is trying to do everything it can to “When they come out of school with a de- 0460 or [email protected] ON THE DRAWING BOARD MANAGING EDITOR Andy Chapelle, (313) 446- encourage young people to become engi- gree, they know us and we know them. … 0402 or [email protected] neers and to get them into Michigan compa- They hit the ground running,” he said. The Engineering Society of Detroit has scheduled a ASSISTANT MANAGING EDITOR/FOCUS Jennette number of events aimed at helping attract and retain Smith, (313) 446-1622 or [email protected] nies.” “We see a huge benefit to ourselves in BUSINESS LIVES EDITOR Michelle Darwish, (313) At the same time, the multidisciplinary terms of developing engineers, (and) we are engineering and technical talent in Michigan. For more 446-1621 or [email protected] information, visit www.esd.org. COPY DESK CHIEF Gary Piatek, (313) 446-0357 society is trying to assist engineers and sure other companies will see the same or [email protected] technical talent to find thing.” They include: GRAPHICS EDITOR Nancy Clark, (313) 446-1608 or [email protected] jobs, grow their careers ESD is planning other events to help at- Sept. 16-Oct. 28: “Leadership Michigan: Driving COPY EDITOR Vic Doucette, (313) 446-0410 and get the tools they tract and retain engineering and technical Business Success,” a six-week, leadership development or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or need to become or re- talent. (See box this page for more details.) and business acumen development series. Speakers [email protected] main marketable, she They include: include: Richard Sheridan, CEO of Menlo Innovations; WEB GENERAL MANAGER Alan Baker, (313) 446- 0416 or [email protected] said. A six-week leadership-development Gerard van Grinsven, president and CEO, Henry Ford West Bloomfield Hospital; Josh Linkner, CEO, ePrize WEB EDITOR Christine Lasek, (313) 446-0473, “We will be holding and business-acumen training series that [email protected] more programs to devel- L.L.C.; Stanford Ovshinsky, president and CEO, WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) runs Sept. 16- Oct. 28. Ovshinsky Innovation L.L.C.; and Mary Kramer, publisher, 446-0403, [email protected] op our engineers as lead- Expansion of its job bank and job fairs, RESEARCH ASSISTANT Joanne Scharich, (313) Crain’s Detroit Business. 446-0419 ers here in Michigan, do- through the addition of two annual events Oct. 13: First monthly meeting of about 20 Michigan EDITORIAL SUPPORT Anita Duncan, (313) Trudell ing more (public in the spring and fall, the first taking place 446-0329 technical associations to discuss actions they can take NEWSROOM (313) 446-0329, FAX (313) 446- relations) nationally and Oct. 27 at Rock Financial Showplace in 1687 TIP LINE (313) 446-6766 internationally to let people know we have to help turn around Michigan’s economy. Vladimir’s, Novi. Farmington Hills. REPORTERS technical talent in Michigan, and helping Monthly networking events. Oct. 23: 2009 Economic Forecast for Design and Robert Ankeny: Covers the city of Detroit, Wayne the engineers stay here by finding jobs,” Monthly meetings of about 20 Michi- County government, and law. (313) 446-0404 or Trudell said. Construction. Half-day event featuring David Littmann, [email protected]. gan engineering associations to discuss senior economist with the Mackinac Center for Public Ryan Beene: Covers auto suppliers, steel. (313) The society is in the process of hiring a 446-0315 or [email protected] ways they can help to turn around Michi- Policy, among others. Laurel Manor, Livonia. fundraising director to head a $5 million gan’s economy. Sherri Begin: Covers nonprofits and services. campaign over the next three years to fund Oct. 27 and March 2009: Annual job fairs, the first of (313) 446-1694 or [email protected] Development of a promotional kit to Daniel Duggan: Covers real estate and hospitality. the core initiatives behind the effort, she which is expected to draw more than 200 companies (313) 446-0414 or [email protected] highlight Michigan’s technical talent and said. and 1,500 job seekers to the Rock Financial Showplace Jay Greene: Covers health care, insurance and the national and international distribution of environment. (313) 446-0325 or ESD’s new degree sponsorship and tech- in Novi. [email protected]. it with assistance from top marketing exec- nical-talent development programs are de- Jan. 14: Future City Competition returns to engage Chad Halcom: Covers education, non-automotive utives at companies including DTE Energy manufacturing, defense contracting and Oakland signed to cultivate interest and support for middle school children in engineering by having them and Macomb counties. (313) 446-6796 or future engineers and to keep talent in Co., Next Energy, Ghafari Associates L.L.C., design cities of the future. Rock Financial Showplace, [email protected]. Lawrence Technological University, WWJ 950 Tom Henderson: Covers banking, finance, Michigan, she said. Novi. technology and biotechnology. (313) 446-0337 or and Crain’s Detroit Business. [email protected]. For the past 10 years, Plymouth-based May 6: Energy conference and exhibition. Hosted by Co-sponsorship of a three-day confer- Nancy Kaffer: Covers small business and retail. Durr has awarded scholarships of about the ESD and DTE Energy Co. at a location not yet (313) 446-0412 or [email protected]. $6,000 a year, internships, college course ence May 31-June 2 with the U.S. Green Build- announced, this event will focus on the needs of small Bill Shea: Covers media, advertising and ing Council aimed at helping to establish marketing, entertainment, the business of sports, guidance and mentoring to high school businesses to save energy and is expected to attract and transportation. (313) 446-1626 or graduates who show interest in engineer- Michigan as a hub for alternative energy more than 200 exhibitors and 1,500 attendees. [email protected]. by attracting hundreds of exhibitors and Nathan Skid: Multimedia reporter. Also covers the ing careers. About 20 to 30 students — or May 31-June 2: Greening the Heartland Regional food industry. (313) 446-1654, [email protected]. half those who have entered the program — thousands of attendees from across the U.S. Conference at Cobo Center. This three-day conference, LANSING BUREAU complete it and then go on to work for Durr More information on all of the society’s Amy Lane: Covers business issues at the Capitol, co-sponsored by ESD and the U.S. Green Building telecommunications and utilities. (517) 371- for three years, said President and CEO initiatives can be found at www.esd.org. Council, is expected to attract hundreds of exhibitors 5355, FAX (517) 371-2492, [email protected]. or David Meynell. Sherri Begin: (313) 446-1694, and thousands of attendees from across the U.S. 115 W. Allegan, Suite 220, Lansing 48933. About half of those remain as Durr em- [email protected] ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, Cathy Ross, Dale Smolinski CRAIN’S SEEKS BEST MANAGED NONPROFITS WESTERN ACCOUNTS Ellen Mazen (Los Angeles) Security: VC fund launched (323) 370-2477 This year has seen continued challenges in the nonprofit CLASSIFIED MANAGER Melissa McKay, (313) arena that have included changes in United Way funding in ■ From Page 3 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Greg addition to a weak economy. Evangelista, 313-446-1655 Therefore, this year’s Best Managed Nonprofit Contest will managing partner Dale Grogan, also a Gov. Jennifer Granholm and funded with EVENTS MANAGER Nicole LaPointe continue to look at nonprofits that have taken specific board member and fund manager of the $300 million of the state’s $57 billion pen- MARKETING PROJECTS MANAGER Jennifer Dunn steps to improve operations and delivery of services. MHSRF, said the investment fundraising sion fund assets. That program will be di- MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea We are looking at the is still in process, but he hopes the fund vided into a Growth Capital Fund and the Beckham, YahNica Crawford following categories: could reach a point where it can begin Michigan Opportunities Fund. It is geared to CIRCULATION Candice Yopp, Manager. Collaborations, including making investments within a month or so. PRODUCTION MANAGER Wendy Kobylarz attract businesses in health care, infor- PRODUCTION SUPERVISOR Larry Williams, mergers. The organizers are aiming for a $5 mil- mation technology and communications, (313) 446-0301 Finding ways to do more lion minimum and a stretch goal of $10 SUBSCRIPTIONS (313) 446-0450, auto suppliers and alternative energy, in (888) 909-9111 with less. million as originally proposed by Bro- addition to homeland security. TO FIND A DATE A STORY WAS PUBLISHED: Strategies for diversifying phy. Brophy is no longer on the MHSC (313) 446-0367 or e-mail the Crain Information Charles Rothstein, senior managing Center at [email protected]. funding. board, but he holds an advisory position partner in Farmington Hills-based ven- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Launches of new on the MHSRF board. ture-capital firm Beringea L.L.C. and a CRAIN COMMUNICATIONS INC. programs that help the organization better meet “The advantage we’re going to have is CHAIRMAN Keith E. Crain objectives. past board member of the Michigan Strate- PRESIDENT Rance Crain being dedicated specifically to one indus- gic Fund, said last week he was familiar SECRETARY Merrilee Crain Please focus on only one of the above in your application. TREASURER Mary Kay Crain try and offering not only startup funds, with the Michigan Homeland Security As always, documentation of results is important. Executive Vice President/Operations but expertise,” Grogan said. Resource Fund and believes it will occu- William A. Morrow Applications for the contest are due Sept. 17. Finalists in “This is not the kind of fund where Group Vice President/Technology, py a unique market space in Michigan. Manufacturing, Circulation this year’s contest will be interviewed in person by judges we’re looking at a technology firm one Robert C. Adams The Michigan Strategic Fund has au- the morning of Dec. 2. week and a golf course proposal the next Vice President/Production & Manufacturing thority to promote economic develop- Dave Kamis Applicants for the award must be a 501(c)(3) with and a health care service after that. This Corporate Director/Circulation headquarters in Wayne, Washtenaw, Oakland, Macomb or ment and create jobs through use of pri- is all homeland security companies, and Patrick Sheposh Livingston counties. vate-activity revenue bonds, creation of G.D. Crain Jr. Founder (1885-1973) we’re going to be able to spot synergies Mrs. G.D. Crain Jr. Chairman (1911-1996) Each application must include a completed entry form, a tool and die recovery zones and by acting copy of the nonprofit’s most recent audited financial between new firms and new applications. EDITORIAL & BUSINESS OFFICES: That will (have) value.” as a fiduciary agent to the state on some 1155 Gratiot Ave., Detroit MI 48207-2732; (313) statements and a copy of the nonprofit’s most recent IRS investment decisions. 446-6000 Form 990. Companies eligible for fund invest- Cable address: TWX 248-221-5122 AUTNEW DET ment must be startups or new business- Rothstein doesn’t expect Beringea to Subscriptions $59 one year, $98 two years. Out of Previous first-place winners are not eligible; neither are state, $79 one year, $138 for two years. Outside hospitals, HMOs, medical clinics, business and es, based in Michigan, with a proven overlap much with the new fund, howev- U.S.A., add $48 per year to out-of-state rate for er, since it targets startups and his com- surface mail. professional organizations, schools, churches or product or service that has not yet Reprints: For inquiries call the reprints department foundations. reached a commercial phase or any ven- pany invests mainly in small companies at: (800) 494-9051, Ext. 144 , or at [email protected] The winning nonprofits will be profiled in the Dec. 22 dor agreements or contracts, Potter and that have commercialized their products CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is issue, receive a cash award, a special “best-managed” Grogan said. already and are looking to grow. published weekly except for a double issue the logo from Crain’s for use in promotional material, and will Grogan said he expects the MHSRF “But it’s always great to have more second week in August by Crain Communications receive recognition at the Crain’s Newsmaker of the Year Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. will be able to make up to 20 investments, funding options available for venture Periodicals postage paid at Detroit, MI and additional lunch in February. mailing offices. POSTMASTER: Send address each valued between $250,000 and capital in Michigan, and the (new) fund For a copy of the application form, please send an e-mail changes to CRAIN’S DETROIT BUSINESS, Circulation will certainly further develop the entre- Department, P.O. Box 07925, Detroit, MI 48207- request to [email protected] or visit $500,000, once it reaches full funding. 9732. GST # 136760444. Printed in U.S.A. www.crainsdetroit.com/nominate. For more information, Homeland security industries are also preneurial ecosystem here,” he said. Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. call (313) 446-0329. an investment target of the Invest Michi- Chad Halcom: (313) 446-6796, chal- Reproduction or use of editorial content in any gan! Program, unveiled in late July by [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 09-08-08 A 30 CDB 9/5/2008 5:41 PM Page 1
Page 30 CRAIN’S DETROIT BUSINESS September 8, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG. 30-SEPT. 5
based law firm Gowling, part, over health care cov- close its 200 retail offices Lafleur, Henderson L.L.P. to Survey: Fix erage issues. Stojic de- and lay off about 5,000 em- New focus for help procure funding for the clined to divulge details. ployees as part of plan to re- second span. But in Novem- A total of 2,727 bargain- duce its mortgage lending ber 2006, Moroun’s company Detroit, make ing-unit employees repre- and servicing because of sued the law firm for breach sented by the UAW are em- the housing market down- of contract, breach of fidu- ployed by Blue Cross in turn, the Associated Press the Cattle ciary duty and legal mal- Bing the mayor Detroit, Lansing, South- reported. practice because the firm field and elsewhere in The majority of the lay- was also representing the etroit is on the wrong Michigan. offs are slated for GMAC’s city of Windsor. track and Detroit Blue Care Network, the mortgage lending division, Baron’s ball U.S. District Judge Nancy D businessman Dave HMO affiliate of Blue Residential Capital L.L.C., Cross, has a separate labor Edmunds dismissed the law- Bing should be its next may- and will reduce workforce ince its launch in carpet and paparazzi. contract. suit, saying the bridge com- or, according to an August at the unit by 60 percent, 2003, the American The idea is to help local Roger Kerson, the UAW’s pany consented to the dual survey of 600 randomly se- the company said. S Cancer Society Great businesspeople learn the ad- director of communica- representation. The Court of lected De- Lakes Division Inc.’s Cattle vantages Michigan’s tions, did not have an im- Appeals panel in August re- troit vot- Baron’s Ball has used growing film in- mediate comment. OTHER NEWS versed that ruling and sent ers from the tagline, “Where the dustry holds the 2005 the lawsuit back to federal State officials have Auto Barons Meet and to provide mayoral court in Detroit for trial. M&A found that anti-tax advo- the Cattle a net- election. Mickey Blashfield, CenTra cates gathered enough sig- Barons.” work- It was Plymouth-based Metal- governmental-relations di- natures to hold a November But this ing op- commis- dyne Corp. plans to sell its rector, said the lawsuit will recall election of Michigan year that portunity sioned by constant-velocity joint fac- resume with the bridge tagline is for entrepre- Detroit tory in Italy to Gotenborg, House Speaker Andy Dillon, gone, re- neurs and film in- company seeking “exten- Sweden-based supplier AB D-Redford Township, the Bing Renais- placed by dustry professionals. sive discovery” before it sance Inc. SKF. Associated Press reported. “Western Nights The event will feature goes to trial. and released Tuesday. Troy-based Kelly Ser- The election will proceed and City Lights.” celebrity chef food, music Some 80 percent of sur- vices Inc. on Tuesday said it unless Dillon wins an ap- “We got rid of that (origi- and other entertainment TechTown starting Faith- vey respondents said the has acquired Birmingham, peal in the federal courts. nal tagline) this year be- and film industry leaders. city is on the wrong track, England-based Toner Gra- U.S. District Court Judge cause we want all of the in- The event will be hosted Based Business Club just falling short of the 83.5 ham, which provides re- George Steeh has refused to dustries involved,” said Jill cruitment services for mid- by Jeffrey Spilman, managing Religious leaders in the percent responding the throw out part of a lawsuit Elder, executive director of partner of Ferndale-based same way for their view of dle-management and top accusing Northwest Airlines the Metro Detroit Area Service Detroit area will have the S3 Entertainment Group, the nation. executives in accounting Corp. and the Wayne County Center. opportunity to learn the which has been heavily in- In a head-to-head ballot and finance. Airport Authority, which runs The event is scheduled business side of managing volved with “Grand Tori- test, the survey shows Bing Troy-based Handleman Detroit Metropolitan Airport, for Saturday at the Michigan their congregations no,” the movie being filmed taking 77.5 percent of the Co. has announced the fi- State Fairgrounds. through TechTown’s Faith- of discriminating against locally by Clint Eastwood. vote and former Mayor nalization of the sale of its The society also added a Based Business Club. physically disabled passen- Panelists include Kwame Kilpatrick garnering Canadian music operations motorcycle and classic car TechTown, the 12-block gers at the airport, saying Spilman, Anthony Wenson, 15 percent of the survey re- to Amarillo, Texas-based rally dubbed the “Ride for community of entrepre- Tuesday that five plaintiffs CEO of the Michigan Film Of- spondents’ support. Bing Anderson Merchandisers L.P., Hope” to kick off its Cattle neurs and investors occu- can proceed with their suit fice and a surprise guest. won in the survey’s multi- the company that bought Baron’s Ball and golf outing. pying Wayne State Universi- alleging the airline violated For more information, candidate ballot tests as its United States music The August rally began ty’s research and the Americans with Dis- contact Cynthia Umphrey at well with 61.2 percent of po- business, placing Handle- at three metro Detroit start- technology park, will hold abilities Act, the Associat- 248-619-2591 or tential ballots cast. Wayne man a step closer to liqui- ing points and ended at free seminars focusing on ed Press reported. cynthia.umphrey@ County Sherriff Warren dation. Camp Dearborn in Milford. It marketing, legal, account- The state Department of kkue.com, or Jean Vollrath at Evans took 17.5 percent and was an attempt to attract in- ing, grants and informa- Education has told the De- [email protected]. Kilpatrick earned 13.8 per- OPENINGS/CLOSINGS terest from more families. tion-management systems. cent of the three-person bal- troit Public Schools to ap- See www.cbbdetroit.com Bridge suit back in court “Church leaders perform lot test. Glendale, Wis.-based point an independent certi- for details on the ball. many of the same functions Whoever leads the city Johnson Controls Inc., with fied public accountant to Grosse Pointe transporta- as entrepreneurs, and Tech- must focus on jobs, 33.8 per- its auto interiors operation oversee federal funds for Entrepreneurs group to tion billionaire Manuel Mo- Town can provide them the cent of Detroit voters sur- based in Plymouth, will re- low-income children after roun, who is no stranger to kind of business-develop- veyed said. Crime and structure globally, reduce an audit showed it misused host film-industry party lawsuits, has been granted ment skills that will help drugs ranked as the top jobs and shut down plants, millions of dollars. Also on Saturday is an another day in court by the their organizations run concern by 25.2 percent of with about half the changes The state says an audit event all about lights, cam- U.S. Sixth Circuit Court of Ap- smoothly and be more effec- those surveyed. due for its auto interiors shows the district misused eras and networking. The peals. tive,” said Ebony Johnson, as- Sharing the responsibili- business, Plastics News re- $53.6 million of the federal Entrepreneurs’ Organization is Moroun, owner of CenTra sistant director of Tech- ty in tackling the issues fac- ported. funds from 2004-2006. De- hosting an event in Warren Inc. and the Detroit Interna- Town’s business- ing the city is the Detroit JCI wants to meet with troit schools’ spokesman called the Glitz Premiere tional Bridge Co., which oper- development programs. City Council, whose perfor- workers and local officials Steve Wasko says the dis- Kick-off Party. ates the Ambassador The bimonthly meetings mance was ranked as “fair” before making any an- trict welcomes the state’s The Hollywood-themed Bridge, wants to build a sec- are open to pastors and oth- or “poor” by 85.2 percent, nouncements about where involvement. event is planned at Warren- ond span across the Detroit er leaders of small and mid- with 46.7 percent calling and how it will cut posi- based Stage 3 Productions River. sized churches 9-10:30 a.m. the council’s performance tions. It expects to release BITUARIES Inc., complete with a red He had hired the Ottawa- beginning Tuesday. “poor.” that information during an O A majority of voters said Oct. 14 meeting with ana- Jeffery Blaine, head of they would support chang- lysts. the last Detroit City Charter ing the city’s charter to Southfield-based auto Commission, died Aug. 29. elect council members by supplier Peterson Spring He was 59. district — 75.3 percent to said it plans to open a Robert Garelick, who op- When should you hire a staffing agency? 16.3 percent. 68,000-square-foot manufac- erated Garelick’s Gallery in turing plant in Queretaro, Detroit and Birmingham, If you run your own business, you Regardless of the product sold, Mexico, with completion UAW, Blues extend talks died Aug. 23. He was 94. know how hard it can be to find nothing really happens until scheduled for October. Vicki Levin, who worked good employees. someone performs the role of a At press time, the United Mark Chema, president for nearly three decades as So is it worth it to get some help in “closer” to finish the deal. Auto Workers and Blue Cross of the International Associa- the hiring process? Smith will tell you if you have what Blue Shield of Michigan had tion of Machinists and Aero- a science research officer This week in Small Talk, we’ll look it takes. extended labor contract space Workers Local 1628, for several agencies within at whether it makes financial sense For both the story and the blog, go talks a second time to mid- says Southfield-based auto the U.S. Department of Health for a small business to use a to www.crainsdetroit.com/ night last Friday after their parts-maker Lear Corp. has and Human Services, and was staffing agency to fill its smalltalk three-year contract expired told employees in the wife of U.S. Rep. Sander employment needs. Want to get a jump-start on all the at 12:01 a.m. Sept. 1, Helen Zanesville, Ohio, that the Levin, died of breast cancer While you’re there, check out our small-business stories in Small Stojic, Blue Cross’ media-re- company will shut down its Sept. 4. She was 74. Small Talk bloggers. Talk? Have our Small Talk e-mail lations director, said in a plant in the eastern Ohio Gerald Smith, president This month, Bob Smith from the sent directly to your inbox three statement to Crain’s. city next year, the Associat- and CEO of Detroit Youth Service Corps of Retired Executives WEB WORLD times a month. A source familiar with ed Press reported. Foundation, died from com- says every baseball team needs a Alan Baker Go to www.crainsdetroit.com/ the talks said the negotia- GMAC Financial Services plications of a brain tumor closer, and so do you. Web General Manager getemail to sign up. tions have been stymied, in said Wednesday it will Aug. 30. He was 67. DBpageAD.qxd 8/27/2008 3:50 PM Page 1
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