20101129-NEWS--0001-NAT-CCI-CD_-- 11/24/20104:27PMPage1 ever, it’snotcleariftwolaw- merge withPlatinum.How- (Nasdaq: TEAM)plansto nounced Nov.1,TechTeam for $93.4million. Southfield-based TechTeam inum MergerSubInc fanini’s U.S.subsidiary, Sao Paulo,Brazil-basedSte- ward withplansforthesale. ing thecompaniescangofor- TechTeam GlobalInc., tion ofSouthfield-based tional HoldingsLtd. related to nation ofthewaitingperiod sion Page 14 Largest ITemployers, Pages 12-13 more midcareerjobs, Roundtable: Detroitneeds across globe,Page4 CEO seesopportunity Q&A: Tower International U.S. bizcross-bordercash Little-known programbrings Battenberg defense Next upinDelphicase: NEWSPAPER for TechTeam sale FTC waiveswaitingperiod Crain’s Crain’s This JustIn Inside Page 3 The Following thedealfirstan- The movepavesthewayfor has grantedearlytermi- Federal TradeCommis- See ThisJustIn,Page2 List Stefanini Interna- ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved www.crainsdetroit.com Vol.26,No.49 ’s acquisi- ., tobuy mean- Plat- Southeast Michigan’sinnovators, is developingaplantoconnect troit RiverInternationalCrossing lation toadvancetheproposed least, havebroughtvictory:Legis- get results. and behind-the-sceneslobbyingto on litigation,campaigndonations roun, whofordecadeshasrelied pearance isnewterritoryforMo- sador Bridge. ing roomonbehalfofhisAmbas- “Matty” Morounworkingthedin- prepared thisyeartoseeManuel but membersprobablywerenot scene ofplentydealmaking, LTU planstolinkentrepreneurswithproveninnovators Moroun doesboth,shapesbattleoverbordercrossing Building bridges, Manuel MorounsaysheknowswhatCanadawantsinaninternationalbridgedeal:“Detroit,”onCanada’sterms. Lawrence TechnologicalUniversity But thenewtactics,fornowat Even thismodestlypublicap- The CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B Detroit AthleticClub Y B burning bridges D Y USTIN B ILL S W HEA ALSH is the De- NOVEMBER 29–DECEMBER5,2010 son, Matthew,tocampaignfor He’s alsosenthiswife,Nora,and ries ofcourtfightsturnedsour. has grownmoreintenseandase- lic astheracetospanriver sonally lobbyforsupportinpub- been forcedtoseekalliesandper- thropy. engaging inhigh-profilephilan- life, rarelygrantinginterviewsor shunned publicityformostofhis the 83-year-oldMorounhas sit-down interviewwith more publicrole,duringarecent Matty Moroun,”hesaidofhis Legislature’s lame-ducksession. bridge projectwaskilledinthe early planningisunderway. ject wouldopenforbusiness, but the consortium. el ofserviceandmeetingspacefor physical spacetoprovidesomelev- sources. Thecenterwouldserveas linked systemofregionalre- from proveninnovatorsandtapa trepreneurs tolearnbestpractices and innovationcenter. business-to-business consortium porate leaders,bycreatinganew from entrepreneurstoC-suitecor- But overthepastyear,he’s Often describedasreclusive, “I don’tlikeit.Thisisanew Lawrence Techplanstocreate It’s notyetclearwhenthepro- The consortiumwouldallowen- Crain’s . tified monopolyonbridgetraffic claims hehasagovernment-sanc- from investorWarrenBuffett.He 1977 asa$30millionstockplay tion tothebridgeheboughtin and unfairgovernmentcompeti- U.S.-Canadian spanasunneeded eral governmentforsupport. reportedly turnedtotheU.S.fed- up inthespring,andCanadahas for DRICisexpectedtobepicked because theenablinglegislation was Pyrrhicremainstobeseen, ing andelsewhere. and behindcloseddoorsinLans- him (andagainstDRIC)inpublic DUSTIN WALSH/CRAIN’SDETROITBUSINESS boost cooperationbetweenentre- regional program.Thegoal is to ests andopportunitiesfora new sought toidentifytheneeds,inter- 14-month feasibilitystudy that recently completedthefirststep,a funding. ground —andpursueadditional corporate expertstogetitoffthe bators, governmentgroupsand plans toworkwithbusinessincu- tium andcenter.Theuniversity ing businessmodelfortheconsor- the leadershipstructureandwork- an advisoryteamthatwilldevelop Moroun opposesthe$5.3billion Whether hislegislativevictory The Southfield-baseduniversity See Moroun,Page20 ously nonphotosensitiveretinal into theretina,itconvertsprevi- that whenChop2istransplanted Wayne StateUniversityhasshown Research onsmallanimalsat rhodopsin-2, orChop2forshort. on agenecalledchannel- ergy throughphotosynthesis. direction toconvertthelighten- a pond,anditthenmovesinthat detect wherethesunisshiningon ine. Photosensitivecellsallowitto vironment thanonemightimag- ting on. founder, SeanAinsworth,arebet- roSense TherapeuticsLLC of what anAnnArbor-basedspinoff could helptheblindsee.That’s RetroSense TherapeuticsLLC. Sean Ainsworth,founderandCEOof yield genetherapyfortheblind,says green algae(inset,magnified)could The photosensitivepropertiesofblue- investor support up for tests,wins gears RetroSense may aidblind Algae gene WSU spinoff: That photosensitivityisbased Pond algaereactsmoretoitsen- A geneinblue-greenpondalgae Wayne StateUniversity TOM HENDERSON/CRAIN’SDETROITBUSINESS neurial stakeholders. from morethan1,200entrepre- merce $70,000 vey, partiallyfundedthrougha neurship NeedsAssessmentSur- $146,000 InnovationandEntrepre- development. nizations topromoteeconomic ments andbusinesssupportorga- search anddevelopmentdepart- venture capitalists,corporatere- preneurs, small-businessowners, Also behindtheideaisa CRAIN’S DETROITBUSINESS B Y T grant, whichincludedinput OM U.S. DepartmentofCom- See RetroSense,Page19 H $2 acopy;$59year ENDERSON See LTU,Page17 named and its Ret- ® 20101129-NEWS--0002-NAT-CCI-CD_-- 11/24/2010 4:13 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS November 29, 2010

Michael Duggan, president and ATTENTION, DEALMAKERS CRAIN’S SEEKS 20 IN THEIR The way it was: 2003 CEO, Detroit Medical Center; Stacy THIS JUST IN Involved in a merger or acquisition in Fox, principal, Roxbury Group; Al- 2010? You may be eligible for the 20S NOMINATIONS FOR 2011 lan Gilmour ■ From Page 1 Throughout our 25th-anniversary , interim president, third annual Crain’s M&A Awards. Do you know a 20-something who year, Crain’s will use this space Wayne State University; James Crain’s Detroit Business and the is someone to watch? to look at interesting items from Kokas, owner, Opus One; Robert Fi- suits filed in Oakland County Cir- Detroit chapter of the Association for Crain’s 20 in their 20s awards past issues. cano, Wayne County executive; cuit Court may delay the deal. Corporate Growth will honor program seeks young Platinum plans to purchase all Tim Nicholson, vice president, PVS companies and individuals in the professionals who are making outstanding shares of TechTeam Chemicals Inc.; Nancy Schlichting, following categories: their marks in the region. These Practicing president and CEO, Henry Ford Ⅲ Global for $8.35 per share, which “ Best Deal of the Year: Under entrepreneurs and creative represents a 24 percent premium law. … I’m Health System; and Bishop Edgar $100 million and $100 million or thinkers may not have made their more. Deals must have closed in over TechTeam’s average clos- Vann II, pastor, Second Ebenezer first million dollars, but they’re 2010. living proof that there is work ing stock price over the three- having so much Church. — Sherri Welch Ⅲ Dealmaker of the Year/buyer-seller. under way by young people to month period ended Nov. 1 and a counter the region’s brain drain. 17 percent premium over the fun, I want to do that for a Ⅲ Dealmaker of the Year/adviser: Winners will be profiled in Crain’s closing price of TechTeam’s Tickets still available M&A experts, lenders, CPAs, consultants and attorneys, among 20 in their 20 issue on May 2 stock on Monday, TechTeam good long time. others, are eligible. and honored at a spring awards said. ” for 4th annual D Show Ⅲ Lifetime Achievement: Senior-level event. Stefanini’s offer and with- Tickets for the fourth annual D Reginald Turner, executive who has been involved in Nominations must be received by Show, the Dec. 1 event celebrat- drawal rights are scheduled to Clark Hill PLC significant transactions and has Jan. 14. Visit expire on Dec. 10, unless extend- ing Detroit’s creative industry, made a significant impact on the www.crainsdetroit.com/nominate are still available. ed or earlier terminated. Addressing his plans for the future community. for more information. Filings with the U.S. Securities The event — which recognizes in an April 7, 2003, profile amid Applications for the awards can be Questions? Contact Jennette and Exchange Commission show speculation that he would pursue professional and student cre- found at www.crainsdetroit.com Smith, deputy managing editor, there are two separate share- elected office. Turner, a partner at ative works, primarily in adver- /nominate. The deadline for at [email protected] or holder lawsuits filed in Oakland Clark Hill, resigned last month tising — starts at 6 p.m. with entering is Jan. 14. Winners will be (313)446-1622. Circuit Court Nov. 10 and Nov. from the state Board of Education cocktails and a strolling dinner profiled in the Feb. 28 issue and 16 on the proposed sale. The cas- after seven years to devote more at the Max M. Fisher Music Cen- honored at an event in the spring. es allege that TechTeam’s board time to his family and law ter, followed by an afterglow at For questions concerning the members breached their fiducia- practice. 10 p.m. nomination process, contact Executive ry duties by agreeing to be ac- Most of the works are created Editor Cindy Goodaker at quired and/or that TechTeam here or for clients in metro De- [email protected] or (313) 446- and Stefanini aided and abetted rectors with several business troit. 0460. For help in using the nomination CORRECTION form, contact Marketing Coordinator those alleged breaches of duty. and community leaders. Entries are judged by a panel Ⅲ Kim Winkler at [email protected] or A story on Page 26 of the Nov. The private/public partner- of experts from elsewhere. — Sherri Welch (313) 446-1652. 22 edition misstated the amount ship, which includes both corpo- The awards event is a produc- of space for the former headquar- The Detroit chapter of the rate and civic leaders, has added tion of the D Council, the Adcraft Association for Corporate Growth is ters of International Automotive Downtown Detroit Partnership nine people to its board, bring- Club of Detroit committee that part of a global association of Components Group Inc. The story expands board of directors ing it to 37 directors. oversees the awards judging. professionals involved in corporate should have said the company The newly elected members For tickets or more informa- growth, development and mergers moved out of an 80,000-square- The Downtown Detroit Partner- are: George Corchis Jr., president tion, visit www.adcraft.org. and acquisitions. The local chapter foot headquarters building and ship has expanded its board of di- and CEO, MGM Grand Detroit; — Nathan Skid was formed in 1984. Details: into a 114,000-square-foot build- chapters.acg.org/detroit. ing.

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November 29, 2010 CRAIN’S DETROIT BUSINESS Page 3 Suppliers still lead earnings parade Best-Managed Nonprofits

Just one, Visteon Corp., had a worse Public companies mark 6th quarterly rise quarter, going from $38 million in net losses to a $140 million loss be- BY TOM HENDERSON pared with the same quarter last cause of reorganization and other A SLOW CLIMB CRAIN’S DETROIT BUSINESS year. post-retirement employee benefit For the fifth consecutive quar- Third quarter plan costs. Southeast Michigan’s public ter, the resurgence was led by auto combined net The pace of improvement for the income: companies continue to show re- suppliers, who continue to gener- auto supply sector has finally be- covery from the recession. ate profits and pile up cash. gun to slow, though. The gain of The quarter that ended Sept. 30 Nine auto suppliers combined $430 million quarter over quarter was the sixth consecutive quarter for net income of $806.5 million, follows previous quarterly gains of that they combined for an increase compared with combined income $1.4 billion, $1.7 billion, $6.5 billion $215M $121.5M in net income compared with the in the third quarter last year of and $1.3 billion, respectively. Collaborations recognized as $1.9B $1.1B same quarter the previous year. $376.5 million. Eight of them had The auto supply sector last lost 2010 2009 2010 2009 With 60 area public companies improved earnings, led by Johnson money in the second quarter last models of harmony, Page 8 59 companies, 60 companies, having reported their earnings by Controls Inc., which went from $300 year. not counting Ford including Ford Crain’s deadline Wednesday, 42 (70 million in net income in the third percent) improved earnings com- quarter last year to $449 million. See Earnings, Page 21 Company index These organizations appear in this week’s Crain’s Detroit Business: Alte ...... 3 Ex-Delphi Angle Advisors-Investment Banking ...... 21 ArtServe Michigan ...... 11 Birmingham-Bloomfield Symphony Orchestra ...... 9 Cerberus Capital Management ...... 4 execs bloody Citizens Republic Bancorp ...... 21 CMS Energy ...... 21 Comerica Bank ...... 21 Common Ground ...... 11 knuckles on Community Foundation for Southeast Michigan . . . . 9 Cultural Alliance of Southeastern Michigan ...... 9 Dearborn Bancorp ...... 21 Delphi ...... 3 GM in Round 1 Detroit Chamber Winds & Strings ...... 8 Detroit Film Theatre ...... 9 Detroit International Bridge ...... 20 Battenberg defense Detroit Regional Chamber ...... 17 Detroit Symphony Orchestra ...... 9 Detroit-Windsor Truck Ferry ...... 20 next into the ring DTE Energy ...... 21 EDF Ventures ...... 19 BY MIKE COLIAS Eisenhower Dance Ensemble ...... 8 CRAIN NEWS SERVICE Family Service Alliance for Southeastern Mich. . . . 10 During a tense September 2000 First Michigan Bank ...... 8 General Motors ...... 3 meeting on the 38th floor of General Great Lakes Chamber Music Festival ...... 8 Motors Corp. headquarters in De- Green Detroit Regional Center ...... 18 troit’s Renaissance Center, GM Hilberry Theatre ...... 9 purchasing czar Harold Kutner de- Honigman Miller Schwartz and Cohn ...... 12 livered a blunt message to Delphi Howard Schwartz Commercial Real Estate ...... 5 DUSTIN WALSH/CRAIN’S DETROIT BUSINESS Corp.’s top executives. ITC Holdings ...... 21 John Thomas, CEO of Alte LLC, says foreigners are investing in his electric powertrain company, motivated by a Months into a bitter standoff, Jaffe, Raitt, Heuer & Weiss ...... 5 program that gives them U.S. residency in exchange for their investments in new or existing U.S. businesses. Delphi’s top Johnson Controls ...... 3 brass continued Kresge Foundation ...... 9 to deny they Lawrence Technological University ...... 1 owed GM $250 Macomb Family Services ...... 10 million for re- Maddin, Hauser, Wartell, Roth & Heller ...... 5 calls involving Invest in biz, get a green card Michigan Department of Transportation ...... 20 faulty parts Michigan Opera Theatre ...... 9 made while Del- Michigan Unemployment Insurance Agency ...... 7 phi was still Visa program brings jobs, growth to metro Detroit Motor City Brass Band ...... 9 part of GM. Kut- North Coast Technology Investors ...... 19 ner threatened Oakland Family Services ...... 10 BY MARTI BENEDETTI create at least 10 full-time jobs Kutner to choke off new Pieris Capital ...... 17 AND DUSTIN WALSH over two years. ProMusica of Detroit ...... 9 business if the supplier didn’t CRAIN’S DETROIT BUSINESS The world is It has been getting more notice PulteGroup ...... 21 cave. “ lately, especially in states like Quantum Ventures of Michigan ...... 17 That’s the story that Delphi’s top An obscure federal visa pro- indeed flat. Michigan that have been hit hard- Rackham Symphony Choir ...... 9 attorney at the time, Logan Robin- gram called EB-5 has enabled in- ” est by the recession and are try- RetroSense Therapeutics ...... 1 son, relayed to jurors at former vestors from John Thomas, Alte LLC ing to generate economic invest- Rhode Solutions ...... 17 Delphi CEO J.T. Battenberg III’s South Korea ment and jobs. Starfish Family Services ...... 10 civil securities-fraud trial in De- NEW PROPOSAL and China to their immediate family in ex- Proponents and organizers say Tower Automotive ...... 4 troit. bring econom- change for $500,000 or more of in- they expect jobs related to EB-5 to University Cultural Center Association ...... 5 Robinson, the highest-ranking EB-6: Program United Bancorp ...... 21 would have ic growth and vestment into a new or existing accelerate in coming years as former Delphi official to testify so $250K threshold, jobs to metro U.S. business — like electric pow- awareness of the program builds Valenti Capital ...... 21 far, said Kutner warned him that Page 18 Detroit. ertrain upstart Alte. and there are more local success Visteon ...... 3 Robinson was “calling into jeop- One such “The world is indeed flat,” said stories. To date, California boasts ardy Delphi’s ability to do busi- investment through the employ- John Thomas, Alte CEO. “For- the most use of the program. ness with GM” if the lawyer didn’t ment-based fifth category visa eign investors aware of these op- Still, it is mostly underused. A Department index back down. program was made in October to portunities are pursuing them for January Washington Post article Kutner did not return calls seek- Auburn Hills-based electric pow- the return on investment they’re reported that the number of EB-5 BUSINESS DIARY ...... 16 ing comment. ertrain manufacturer Alte LLC. seeing in companies like ours.” visas each year falls far below the CALENDAR ...... 16 Through four weeks of testimo- EB-5 allows immigrant in- Congress created EB-5 in 1990 maximum 10,000 allowed, even CAPITOL BRIEFINGS...... 7 ny, a parade of former Delphi in- vestors to obtain legal U.S. resi- as a way to get immigrants to in- CLASSIFIED ADS ...... 16 See Delphi, Page 21 dency status for themselves and vest in new businesses that would See Visa, Page 18 KEITH CRAIN...... 6 OPINION ...... 6 In the know Business, economy, public policy OTHER VOICES ...... 6 Want to know what the reporters Read the latest news at THIS WEEK @ PEOPLE ...... 15 know? Read Crain's blogs: crainsdetroit.com/michiganbusiness. Sign up for the WWW.CRAINSDETROIT.COM crainsdetroit.com/blogs weekly e-newsletter at crainsdetroit.com/getemail. RUMBLINGS ...... 22 WEEK ON THE WEB ...... 22 20101129-NEWS--0004-NAT-CCI-CD_-- 11/24/2010 3:32 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS November 29, 2010 ‘Continue to expand smartly’ Is the slow recovery in line with folks. Yeah, was the valuation Back from brink, Tower’s strategy? The trajectory of short of what was on the cover the recovery is the hardest thing when it went? Yes. But here are Tower eyes globe for us in the industry to get our the real facts out there for the IPO minds around. Slow, steady im- market right now: They get done Livonia-based Tower International provement over several years is or they don’t. Many aren’t getting Inc. (NYSE: TOWR), a supplier of something the auto industry has- done and many aren’t even going automotive frames, chas- n’t seen before, but big forward. sis and body stampings, swings in either direc- For us, getting done on the first has staved off oblivion tion will bring with it dis- shot, the pricing was less impor- and is fresh off an initial locations. Yeah, profits tant. It’s a long-term play. The real public offering. improve quicker and issue is, what is the value of the The former Tower Auto- cash flow improves company going to be two or five motive Inc. filed for Chap- quicker if the bottom years from now? … (It) has nothing ter 11 bankruptcy in 2005 comes back, but this isn’t to do with a couple of dollars a because of declining auto- a bad way to manage it share at that time. Our owner, Cer- production volumes and through. I do feel cau- berus, cared less about that price rising steel prices. tiously optimistic. What at that time than whether impor- New York-based pri- we have now, we’re hap- tant, sophisticated marquee in- vate-equity firm Cerberus py to deal with. vestors like Fidelity, for example, Capital Management LP ac- determine us a company they are quired the company in a Despite low volumes in willing to invest in. When the an- $1 billion deal when Tow- Mark Malcolm, North America, the volumes swer comes back “yes,” a couple of er exited bankruptcy in Tower in the emerging BRIC coun- dollars a share to begin with is not Automotive Inc. July 2007. tries (Brazil, Russia, India, that terrible. It’s not the determi- CEO Mark Malcolm took China) are rising. What’s nant of success. the helm just in time for the indus- Tower’s global growth strategy? try’s global collapse in 2008, but he We’re looking to continue to ex- Do you think the IPO would have now views Tower as navigating to pand smartly. It’s not a bad situa- performed better if you had waited for higher ground with global expan- tion. We’re in a recovery mode for General Motor’s IPO? That’s possi- sion and a recovering market. the more mature markets of North ble. But again, the fact that we Tower’s customers include Volk- America and Europe, which are were able to do an IPO gave us swagen Group, Fiat S.p.A. and Ford still the bulk of our revenue, but some cash, which improves our Motor Co. we have this growing presence in liquidity and allows us to expand Tower on Nov. 12 reported a net those expanding markets, like more quickly in Brazil and China. loss of $13 million on revenue of Brazil and China, Also, it allows us $475 million during the third quar- where we primar- to buy down some ter. ily do our busi- What we saw of our debt. The Malcolm led Tower to an im- ness in the BRIC “ quicker that you proved, though not yet profitable, countries. Over a here was a really can do these status. The company raised period of time, things gives you $77 million in its October IPO. we’ll get the bene- good core that chance to Malcolm spoke with Crain’s au- fit of the recovery have more value tomotive supplier reporter Dustin in (North Ameri- engineering skill. one, two, five Walsh about global markets, man- ca) and Europe. ” years from now. I aging through crisis and the road Longer term, Mark Malcolm, think if you deter- ahead. we’re well-posi- Tower Automotive Inc. mine success tioned in those from the price You took over the role of CEO at higher-growth markets. Some- you got on the day of the IPO, Tower at a troubled time in 2007. thing I like about our business is you’re missing the fact that you What made you want to run the com- that by the nature of our product wouldn’t have those proceeds for a pany? What I saw here was actually — which is relatively heavy, rela- period of time and couldn’t exe- an opportunity. Yeah, it was a tively large and expensive to ship cute your strategy over a period of rocky time. It always is when you — we have to build it where we time. And (the) timing of getting come out of Chapter 11 bankrupt- sell. When we’re doing business in across that finish line is worth cy. But, what we saw here was a re- China, we’re not cross-shipping. much more than a couple dollars a ally good core engineering skill — We can literally grow where it is, share. which I knew in this sector, the and it’s not like we have to rob auto supply base, is really impor- from North America to grow in Have you received any indication tant. The team that had been in China or ship it over there. that Cerberus wants out? They in- place through the bankruptcy had vested in the business to make done really good work in terms of How well-positioned is Tower for money. They will determine when restructuring, in terms of plant growth in these markets? We have a they think it’s the right time. They closures. We saw pockets around starting position, particularly in have been terrific to make it the globe for Tower where there China, which can be a challenging through these three years in a were excellent operations. What market if you don’t have experi- tough business at a tough time. Give the gift of remained … because that prior ence. I like having a base to grow They really supported us through team had been so focused on what upon. Brazil is maybe less under- that time to allow us to get through arts and culture! restructuring had to be done, we stood, but certainly through the — which maybe surprised a lot of Wrap up your shopping with one call. thought it was eminently doable. Olympics that is going to be a good customers. But now we have third- steady grower and probably carry party investors of the highest qual- In 2008, the industry collapsed. on. As opposed to China, which ity, so who knows? They will de- Whether giving to clients, staff, family or How did you manage Tower through has really attracted the capacity cide when the time is right. friends—the region’s cultural organizations the downturn? In hindsight, it’s a and the industry’s efforts, when offer creative holiday gifts. Guided tours, crazy thing. If it had happened to all’s said and done Brazil may be a What is Tower’s five-year outlook? concert tickets and much more. me 15 years ago, it would have better place to do business. … It is- Our top line has grown at a com- been overwhelming. But, having n’t as sexy and as big, so it doesn’t pound annual rate of 10-plus per- three decades in the business and attract as much new investment. cent. We have not just an 18 per- the having seen as much as I’ve seen, I Those that are already there have cent position in China and Brazil, cultural knew we had the right things to do fewer competitors. And over a pe- but bigger than that. We’ll have ex- concierge a good job. I told my team not to riod of time, maybe 10 years from panded the type of customers that now, there will be more capacity a program of the cultural alliance spend any time worrying about we have, so that we’re not just en- of southeastern michigan, the economy or worrying about than demand in China. That’s just tirely automotive. We’ll be making a 501(c)(3) organization the volume out there. There’s the way the world works. good margins and free cash flow nothing we can do about it, so let’s that we can apply to further expan- focus on what we can do. Maybe it The IPO underperformed last sions or to a balance sheet that’s in Find out more! helped with the urgency and the month. Were you still happy with the a better position. I’m not against focus in that regard. What we got outcome? I was ecstatic. You have returning money to shareholders www.theculturalconcierge.org done we got done either quicker to understand that it’s a tough IPO over a period of time. 248.767.6731 [email protected] and/or better than if that crisis market. The people who came and Dustin Walsh: (313) 446-6042, hadn’t happened. invested in us were blue-chip [email protected] 20101129-NEWS--0005-NAT-CCI-CD_-- 11/24/2010 3:28 PM Page 1

November 29, 2010 CRAIN’S DETROIT BUSINESS Page 5 Broker’s filing rings up 26th local lawsuit over Farmer Jack

BY DANIEL DUGGAN Schwartz said he was not paid a each of the stores he was assigned. recent conference calls and in- left. However, she said, the broker CRAIN’S DETROIT BUSINESS commission for a lease signed with “I’m disappointed in how they vestor disclosures. hired by A&P, Schwartz, couldn’t Dearborn Heights-based English met their obligations to me and to But during an Oct. 22 conference find many new tenants after hours The flurry of lawsuits over for- Gardens Inc. on a Livonia site. landlords across the state,” he call, CEO Sam Martin referred to a and hours of work. mer Farmer Jack stores continues Nor was he compensated for the said. “The lawsuit speaks for it- “program” the company has in “Their own person couldn’t fill with a commercial real estate bro- time and expenses he was to be self.” place to “minimize any negative all these stores. How could the ker now suing the closed stores’ paid under the contract with A&P, A&P’s senior director of public cash flow related to dark stores.” landlords be expected to do it?” she parent company. he claims in the breach-of-contract relations, Lauren LaBruno, did Schwartz’s case is interesting in said. On the heels of landlords claim- suit. not respond to two e-mails and two the context of the landlord cases, She added that it speaks to ing they have not been paid rent In June, Schwartz said he got a phone messages requesting com- said Michelle Harrell, managing A&P’s business ethics that the since June, a lawsuit has been letter from A&P indicating that his ment on the case. shareholder in the complex litiga- company isn’t even paying the per- filed by Farmington Hills-based contract would be terminated ear- A&P’s attorney, Mark Krysins- tion group at Southfield-based son hired to help fix its problems. Howard Schwartz Commercial Real ly because the company did not in- ki, a partner at Southfield-based Maddin, Hauser, Wartell, Roth & “It’s like running someone over Estate LLC, claiming The Great At- tend to be involved with the real Jaffe, Raitt, Heuer & Weiss PC, also Heller PC, representing five cases with a car, then shooting the doc- lantic and Pacific Tea Co. Inc. has not estate. declined to comment. against A&P. tor that you hired to help the vic- paid the commissions or expenses Schwartz is seeking $631,000, A&P has not issued a public Harrell said A&P argues that the tim,” she said. the firm is owed. which he says he would have been comment on the case and has not landlords should have done more Daniel Duggan: (313) 446-0414, Schwartz’s filing is the 26th law- paid if he had found a tenant for disclosed the Detroit-area cases in to find tenants after Farmer Jack [email protected] suit by a local company against the Montvale, N.J.-based grocery store chain. In 2007, A&P decided to leave the region, vacating 66 stores. Twenty were either bought or leased by Kroger Co., and several others have been leased or subleased. A&P had been paying rent on 27 stores in metro Detroit that are un- der long-term leases, with some running beyond 2020, according to a list of stores the company re- leased in 2007. In June, the company sent a let- ter to the owners of those stores, indicating it intended to stop lease payments, triggering lawsuits by nearly all the landlords. In his complaint, filed Nov. 5 in Oakland County Circuit Court, Schwartz Commercial managing member Howard Schwartz said he was hired by A&P to find tenants for the portfolio of vacant Farmer Jack stores. He was to be paid a commission for each sublease deal and then a bonus for each store where the tenant took over the lease from A&P. UCCA to move office next year More flexible. More affordable. The University Cultural Center As- sociation plans to move its offices early next year to a newly con- More small business-friendly. structed building a block north of the Max M. Fisher Music Center on Woodward Avenue in Detroit and to hire nine employees by Febru- ary. UCCA plans to hire program managers, small-business and real estate development professionals and administrative staff — more than doubling its current staff of six to help in the administration of Running a small business is a big responsibility. Fortunately, we’re here to the $22 million investment from New York-based Living Cities and help with a whole range of new small business-friendly plan designs—HMO, other programs, said President Su- PPO and EPO. Not only are they more affordable, they’re extremely flexible. san Mosey. UCCA has signed a five-year You can virtually design your own plan. Many plan designs are even HSA lease for 3,500 square feet of space on the first floor of the newly con- compatible. Of course, they also include preventive care, our customizable structed building, part of George wellness programs, and access to over 18,000 doctors and the leading area Stewart’s Woodward Garden Block Development, Mosey said. hospitals. Contact your agent or call HAP today at (800) HAP-PLUS. Wayne State University Physician Group has leased the upper two floors, and UCCA will share space on the first floor with other ten- ants, she said. Currently, UCCA is operating in hap.org donated space on Cass Avenue in the David MacKenzie House, which is owned by Wayne State Uni- versity. — Sherri Welch 20101129-NEWS--0006-NAT-CCI-CD_-- 11/24/2010 3:34 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS November 29, 2010 OPINION OTHER VOICES Signs of recovery lead We must invest in early childhood Supporting families in the earli- Employers are sensitive to state est and most important years of and local taxes. More than $200 their children’s development helps million of the K-12 budget is spent our economy. because grades are repeated and list of local blessings By age 5, as much as 90 percent special education must cover pre- of a child’s intellectual and emo- ventable learning disabilities. s this editorial was being written just before the tional brain wiring has been set Eleven percent of Michigan Thanksgiving holiday, it seemed a good time to count for life. Early nurturing experi- kindergarteners repeat this grade, ences determine intelligence and at a cost of $100 million a year. An- A our local business-oriented blessings. Here are five behavior. When a young child’s other $200 million is spent on juve- things we’re thankful for: life is marked by poverty and de- Hillegonds Martina nile corrections that can be traced General Motors Co.’s successful IPO. What’s good for Gener- privation, the damage can be long to inadequate care and education al Motors sometimes is what’s good for the economy. lasting. ing daily reading to children in before kindergarten. Let’s face it: Detroit, Michigan and the auto industry have Michigan needs to build a their early years — that make a A business case can also be skilled and educated workforce to huge difference. made for strategic reform. A high- been through a lot over the past couple of years. The federal compete in the global economy. To As businesspeople, we see in- level consolidated state office of bailout of GM and Chrysler, followed by the Chapter 11 filing do that, all Michigan children vestment in early childhood as an early childhood could result in of GM’s predecessor, General Motors Corp., left a lot of the U.S. must arrive at school healthy and investment in economic develop- more efficient and accountable de- critical of two presidential administrations and of the domes- ready to succeed. ment. Young children are to livery of early childhood health tic industry’s management. But one-third of our infants and Michigan what research and de- and education services. toddlers are not fully immunized. velopment are to 21st-century cor- We have a tremendous opportu- But GM’s Nov. 18 IPO, the largest in U.S. history, raised An estimated 40,000 4-year-olds in porations: You must invest in both nity in 2011 to elevate the business about $23 billion and is expected to give a boost to the local Michigan qualify for but do not re- to maximize future results. case for early-childhood invest- economy and to suppliers. ceive publicly subsidized According to two highly regard- ment to a higher priority. The new There’s still a lot of ground to be covered — GM still owes preschool. A survey of kinder- ed economists at the Federal Re- governor and new Legislature can the federal government about $26.5 billion — but investor con- garten teachers found that, on av- serve Bank of Minneapolis, for score an early and crucial win by erage, 35 percent of the 150,000 every $1 invested in high-quality doing so. fidence in GM helps create more confidence in the Michigan Michigan children entering early care and education, we can Alyssa Martina is president and economy overall. kindergarten each year are not save $17 in welfare, criminal jus- publisher of Metro Parent Publish- A declining unemployment rate. The jobless rate is still very ready to learn. The teachers cite a tice and other social costs. The ing Group in Ferndale. Paul Hille- high at 12.8 percent, but it’s the first time it’s dropped below 13 lack of opportunity for children to benefits are immediate: Michigan gonds is senior vice president of cor- percent in 19 months. attend preschool as a primary fac- saved $1.1 billion last year alone porate affairs for DTE Energy Co. tor. And quality preschool is but because of school readiness efforts Both serve on the Children’s Lead- Common sense. It is way too early to speculate on the suc- one of several strategies — includ- since 1984. ership Council of Michigan. cess of the incoming administration of Gov.- elect Rick Snyder, but we can’t help but be heartened by his early appointments that show a commitment to populating his adviso- ry teams and administration with people who TALK ON THE WEB share his innovation-oriented politics. We’ll also be thankful if the carping stops about From www.crainsdetroit.com where Snyder plans to live and whether he is fines a great entrepreneur. This Re: Find governor a place in Detroit? Reader responses to stories and sufficiently Republican. team will make it, big time. Keith, your man-crush on Mr. blogs that appeared on Crain’s Snyder Miguel Cabrera. This may sound frivo- Terry Cross Snyder is showing. … Now you Web site. Comments may be lous, but Detroit is a sports town and the Detroit Tigers’ first want him to set up a little Camp edited for length and clarity. Re: M is for mending baseman is a future Hall of Famer in the peak years of his ca- David here in Detroit. Can you It is great that David Brandon reer. This is not a small thing. We’re a town whose most recent imagine the reaction if President Oba- ma had decided to stay in his lovely says he is “benchmarking” against baseball Hall of Fame player, Al Kaline, retired in 1974. Cabr- tors to think about what will be best the University of Florida and Ohio home in Chicago? for Michigan in a generation rather era also would have been the beth State University. Perhaps he what is best for the individual leg- should also be looking closer to 2010 season’s American islator in the next election cycle. League Most Valuable Player Re: DSO troubles endanger funds home. Michigan State University has TS Galloway been exceptionally successful in ath- if it had been the Tigers, in- Lowered expectations net low- A lot of independents and De- letic development under the tutelage Cabrera stead of the Texas Rangers and ered results. The numbers quoted in mocrats voted for Rick because of its modest current athletic director, Josh Hamilton, who went to the this article would not even fund the they want him to fix the economy Mark Hollis. miserable offer management has giv- and the budget deficit. … Most of Walt World Series. en musicians. these people are not at all interested The privilege of living in metro De- gold1849 in these special interest social issues. Re: Aetna layoffs in Southfield office troit and the state of Michigan. We have Rock Re: Snyder could face GOP They pulled out because they a long history of innovation that creat- were losing money in the Michigan ed one of the world’s largest industries. It’s lawmakers with social agenda Re: Who’s making it in Detroit? small group market and their rates time to stand proud and reclaim it. Rick Snyder’s greatest challenge Dawn White is a brilliant engi- were uncompetitive. will be getting term-limited legisla- neer and researcher. Jen Baird de- Benefits Advisor PHOTO COURTESY OF DETROIT TIGERS KEITH CRAIN: Next couple of weeks are very important Last weekend was the beginning going to start a trend. Companies are run- There is simply still too much based on confidence, and right of the Christmas shopping season. Retailers throughout ning very lean these uncertainty facing businesses in now the business community does- For whatever we want to say about Southeast Michigan are days, and most execu- Michigan and the rest of the na- n’t seem to have much confidence the lack of religious impact of the going to be relying on tives are very con- tion. in how the government is handling season, let us not forget the eco- this season and, for cerned about what next If we want to see some serious the U.S. economy. nomic implications. many, their entire year is going to bring as recovery, then business is going to If we want to see next year kick What happens during these year’s profit will be de- far as the economy is want to see stability. Whether big off into what can continue to be a weeks leading up to Christmas termined in the month concerned. business or small, it’s important to modest recovery, then we’re going means a great deal to the nation’s of December. Congress has still not understand what lies ahead for to need a strong retail Christmas economy and Southeast Michigan. It’s going to be tough addressed the problem more than just a month or two. season. We might be happier if everyone this year, I fear. of whether it is going to It’s going to be important what It’s still anybody’s guess as to decided that the appropriate gift Companies across the raise taxes on Jan. 1, this lame-duck Congress gets done what this season is going to end up this Christmas would be a car country are keeping a very tight and, if it doesn’t do anything, then in the next few weeks as to being in terms of retail sales. made by Detroit’s auto companies rein on costs, and that’s probably most parts of the country are going whether we will see lots of positive Maybe there is still time to per- and manufactured in a U.S. plant, going to include elimination of to face the prospect of going back retail sales. suade everyone to buy a car or but it’s not very likely that we are bonuses for many employees. into more of the recession. So much of retail business is truck. 20101129-NEWS--0007-NAT-CCI-CD_-- 11/24/2010 3:26 PM Page 1

November 29, 2010 CRAIN’S DETROIT BUSINESS Page 7 Clock ticks down on start of higher UI taxes LANSING — As the tential for one piece of with liability exemptions from ex- action is required of the purchasers. use other SBA loan-closing options new year approaches, the reforms that might isting contamination, and DNRE Richard Pasiak, district counsel that cost more time and money. there’s still no reprieve Capitol impact SBA lending to letters affirming a BEA have satis- with the SBA, said the SBA will also Richard Barr, partner in the en- in sight for thousands of Briefings purchasers of sites. fied a heavily used clause in SBA look at the extent of contamination vironmental law department at Michigan employers fac- The concern has to do lending procedures that allows a on the site and other factors, “but Honigman Miller Schwartz and Cohn ing higher unemploy- with state letters that are loan to proceed and close, said generally speaking, if we have that LLP said ramifications may go be- ment insurance taxes issued when baseline en- Michael Kulka, vice president and determination letter and the BEA is yond SBA lending. starting in January. vironmental assess- principal in the Berkley office of affirmed, it gives us a way to pro- “I expect that there will be some Coming due is an esti- ments, or BEAs, are PM Environmental Inc. ceed with a loan if there’s contami- lenders, particularly out of state mated $140 million inter- completed on a site, doc- The SBA requires that if there’s nation on the property.” lenders, who will evaluate how to est bill that the state needs umenting soil or ground- contamination on a property that’s He did not know how many determine if they’re satisfied with to pay on its federal unem- water contamination going to be used as collateral in a loans the SBA makes using the the environmental investigation of ployment borrowing. Amy Lane and other information. loan, the contamination must be BEA determination letter. the property, in the absence of the And unless Congress Purchasers currently cleaned up before the loan goes for- Kulka said the DNRE will no affirmative determination from extends an interest waiver for can request a DNRE determina- ward, unless one of several miti- longer perform BEA determina- the MDNRE that will no longer be Michigan and other states that have tion of whether a baseline assess- gating factors is met. tions under the brownfield law available,” Barr said. borrowed money, a state solvency ment is adequate. One of those factors is a govern- changes being considered, and said Amy Lane: (517) 371-5355, tax will kick in starting in January, A BEA provides purchasers ment letter stating that no further that means purchasers will need to [email protected] as Crain’s has previously reported. The tax of up to $67.50 per em- ployee will be assessed on about 54,500 “negative balance” employ- ers whose employee-benefit claims exceed the unemployment taxes they paid. Stephen Geskey, director of the Michigan Unemployment Insurance Agency, said he and others in Michigan, and other states, have been pressing Congress for an ex- tension of the waiver, but he didn’t know if it would be considered by Congress yet this year. Brownfield changes and SBA loans Changes to Michigan’s brown- field cleanup program are heading to final action in the Legislature. Overall, the long-negotiated pack- YOU GROW YOUR BUSINESS, age of environmental cleanup re- forms contains elements that busi- WE’LL GROW YOUR MONEY. ness officials say will provide more clarity in the cleanup process. That includes timeframes for SOUND GOOD? the Michigan Department of Natural Resources and Environment to act on cleanup plans submitted to the de- partment, a review board to which applicants can appeal, reports at- testing to the completion of a cleanup in compliance with the law, and DNRE public reporting on its performance administering HUNTINGTON BUSINESS PREMIER the cleanup program, said Doug Roberts Jr., director of environ- MONEY MARKET ACCOUNT mental and energy policy at the Michigan Chamber of Commerce. But an environmental consul- tant whose company’s work in- cludes projects assisted by U.S. Small Business Administration loans says he’s concerned about the po- 1.10% Detroit incinerator sold for $50 million with $20,000 minimum balance In a Nov. 16 sale valued at $50 million, a newly created joint venture of Connecticut-based Atlas Holdings LLC and Ohio-based Ther- mal Ventures LP will own the Greater Detroit Resource Recovery Authority A Huntington Business Premier Money Market Account offers the liquidity of a savings waste-to-energy plant along with account with the return of a CD. So you can grow your extra money and still maintain the steam energy loop it services and an operating company for five access to it. How cool is that? other local steam facilities. No date is set to reopen the waste plant, also known as the De- Visit huntington.com/biz_PMMA, call your Huntington Banker or 1-877-705-6972. troit incinerator. Detroit Renewable Energy LLC, which will be majority-owned by Atlas Holdings and co-owned by Thermal Ventures, will own sepa- Rate offer is accurate as of November 1, 2010. Minimum balance to open and earn advertised rate is $20,000.00. Different rates apply to different balance tiers. Rates may change at any time. When your balance falls into a particular rate tier, the entire rate subsidiary companies for the balance will earn the applicable rate in effect for that tier. Funds from existing Huntington accounts cannot be used to open the new account. Fees could reduce earnings on the account. An Early Account Closing Fee will apply to accounts closed within incinerator plant and the steam 180 days of opening. FDIC insured up to applicable limits. Public funds, brokers and fi nancial institutions not eligible for advertised rate. We reserve the right to limit acceptance of deposits greater than $25,000,000.00. energy loop. Member FDIC. ® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.™ is a service mark of Huntington Bancshares Incorporated. ©2010 Huntington Bancshares Incorporated. — Chad Halcom 20101129-NEWS--0008-NAT-CCI-CD_-- 11/24/2010 3:29 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS November 29, 2010 A CONVERSATION WITH Extra

David Provost, First Michigan Bank best-managed nonprofits

A year ago, Troy-based First Michigan Bank had a single branch. Today, it has 40 with the acquisition of the assets of two banks shut down by regulators, First Banking Center of Burlington, Wis., on Nov. 19, and Citizens First Bank of Port Huron, in April. The acquisitions were funded with $200 million in raised money — about Working harmoniously $50 million of which came from New York financier Wilbur Ross. David Provost, First Michigan’s chairman and CEO, talked with Crain’s reporter Tom Longtime collaborations have nonprofits playing in tune Henderson about the bank’s strategy. BY SHERRI WELCH On the new First Banking deal, you found CRAIN’S DETROIT BUSINESS THE FINALISTS out on Tuesday you’d be taking the bank over after the close of business Friday. any organizations view Family Service How did that work? The decision to Alliance: collaboration as a way to Successful close a bank is done at the last minute. M get through hard times. collaboration The FDIC gives the bank every chance But for Detroit Chamber Winds brings special to raise capital. The FDIC has an & Strings, collaboration with recognition, expectation that if you are the winning other nonprofits became an in- Page 10 bid, you’ll have a full integration team in trinsic part of its business place: a leadership team, a human model long before the econom- resources team, a property ic collapse. management team, a branch operation Earl The Southfield- team. We have hundreds of hours of Common prep time put into the process. A lot is Winner based nonprofit Ground: Merger invested on the if-come. has forged ongo- of service ing operational agencies When you closed on your fundraising, collaborations of 12 years ago Ross told Crain’s his company would varying degrees keeps bearing participate in future fundraising as with six other fruit, Page 11 needed to do more deals. Where are nonprofits since you in that process? If this bank (First 1992, and it ex- Banking Center) ends up needing 2010 pects to add two Rothschild $50 million, we’ll have $80 million to more organiza- $100 million left. If you figure on a ArtServe tions to the group on Jan. 1. capital ratio of 10 percent, that Michigan: allows us to buy about $1 billion in Those efforts are helping each Reshaped assets, whether that’s one bank or member build capacity and in- organization stresses arts two. We had a commitment of crease outreach and revenue. Detroit Chamber Winds’ ef- advocacy, $400 million from investors last Page 11 March, but we only needed forts are also attracting atten- $200 million of it. There’s nothing tion from funders interested in worse than having too much unused the multiplier effect of making capital. We won’t have any problem a grant to one nonprofit but Goulet raising more money. We’ve got helping several others. another $200 million ready to go. In another form of collabora- our own.” tion, Detroit Winds last fall Small nonprofits always How does the bid process work to take launched a joint ticket program, struggle with identifying staff over the assets of banks shut down by resources to fulfill their mis- the Federal Deposit Insurance Corp.? Passport to the Arts, with other sions, Okun said. Banks apply to be on a bid list. About performing arts groups in an ef- Collaboration “has enabled a month ahead of time, you’re asked fort to attract more young pa- whether you want to bid on a bank, trons. The program sold out in us to build enough critical and then you formulate a bid. You 2009 and again this year. mass that we can identify and don’t bid on every bank that comes Next year, Detroit Winds is retain an outstanding staff … along. taking that program a step fur- (which) is every bit as valuable ther through a cultural ex- in good times as in bad.” Regulators tell employees they’ve taken change with IndyHub, an Indi- over the bank. Do you go in, too, and anapolis nonprofit, which will NATHAN SKID/CRAIN’S DETROIT BUSINESS meet employees? I met with regulators Early collaboration bring its own “passport” hold- Detroit Chamber Winds & Strings executives Natalie Bruno (left) and in Wisconsin on Thursday to go over ers here for an Eisenhower Maureen Kickham “are integral to the success we’ve been having,” said After numerous program- everything. Friday, they go in first, and Maury Okun, Detroit Chamber Winds trombonist and executive director. matic collaborations, Detroit then I go in. I’m at headquarters, and Dance Ensemble performance Chamber Winds began combin- we’ve got one person at every branch. and take a group of metro De- ing backroom operations with It’s a very stressful situation for troiters there for one. For all of “We’ve always thought of Chamber Winds, the Great employees, and we want to put a face those reasons, Detroit Cham- collaboration as capacity- Lakes Chamber Music Festival Great Lakes Chamber Music to the name and reassure them. Banks ber Winds & Strings is Crain’s building,” said Maury Okun, and Eisenhower Dance. in that situation have been trying to 2010 Best-Managed Nonprofit. executive director of Detroit “None of us could do this on See Detroit Winds, Page 9 shrink to maintain capital ratios. When we come in, these employees have an opportunity to start growing again; to go on the offense again and stop playing defense. MEET THE JUDGES This year’s Crain’s Best-Managed Nonprofit Contest focused on successful collaborations, partnerships and mergers among area nonprofits. The winner, Detroit Chamber Winds & Strings, will be honored at Crain’s Newsmaker of the Year lunch next year and will receive a cash prize of $2,000: $1,000 from If you know someone Crain’s and $1,000 from Gary Dembs, president of the Non-Profit Personnel Network in Southfield. Dembs also served as a judge. The other judges were: interesting in banking, finance, technology Paul Good, community and Karla Hall, Gerald Lindman, senior Richard Martin, Mark Neithercut, principal, or biotechnology government relations manager, manager, corporate lecturer and director for vice president, Neithercut Philanthropy Advisors, Tom Henderson Detroit Zoological Society, Royal contributions; and the Center for Nonprofit advancement, Detroit and Chicago. Neithercut also should interview call Oak. Good has a long track record vice president and Management at Lawrence Lutheran Social is a past executive at the Community (313) 446-0337 or of nonprofit board experience and secretary, DTE Energy Technological University, Services of Foundation for Southeast Michigan write thenderson United Way volunteer service. Foundation, Detroit. Southfield. Michigan, Detroit. and The Kresge Foundation. @crain.com. Crain’s thanks the judges for the hours spent evaluating applications, and the nonprofit practice group at Plante & Moran PLLC in Southfield, led by partner Sue Perlin, for its financial analysis of the applicants. 20101129-NEWS--0009-NAT-CCI-CD_-- 11/24/2010 10:52 AM Page 1

November 29, 2010 CRAIN’S DETROIT BUSINESS Page 9 Finance Extra: Best-Managed Nonprofits Detroit Winds: Working in harmony ■ From Page 8 Festival in 1993. In 1996, it added Eisenhower Dance Ensemble and working with IndyHub, the Eisenhower Dance Ensemble. the Great Lakes Chamber Music founder of the passport program, Today, the three share Okun — Festival to the two newest members on a cultural exchange for next a trombone player for the Detroit and to Motor City Brass Band and year. Chamber Winds & Strings and the Rackham Symphony Choir. Detroit Chamber Winds’ efforts Michigan Opera Theatre’s orchestra To accommodate the expanded have caught the attention of sever- — as well as other staff, office collaboration, Detroit Chamber al funders. space, technology and administra- Winds has promoted its former di- The Community Foundation for tive services. rector of marketing services, Mau- Southeast Michigan in September Through the collaboration, the reen Kickham, to executive director 2009 made a $60,000 grant to fund combined annual operating bud- for the four newer collaboration an education/outreach coordina- get for the three nonprofits in- members. It also plans to hire a tor for the three initial sister orga- creased to $1.4 million in fiscal communications manager, a devel- nizations and to launch the Pass- 2010 ended July 31, up from about opment officer and two part-time port to the Arts program. $250,000 total for all employees — a de- The Troy-based Kresge Founda- three their first velopment and tion two months later followed that joint year in 1996. The marketing assis- with a $50,000 grant to fund the Detroit Chamber “ tant and a database work of Boston consultant Techni- Winds acts as fidu- collaboration has manager — by the cal Development Corp., which is ciary for all three, end of the year, looking at ways to optimize and ex- hiring staff, leasing allowed us to build Okun said. pand Detroit Chamber Winds’ office space and tak- Detroit Chamber business model in new areas and ing the lead on oth- organizations that Winds has been with new partners, Okun said. er business deci- providing develop- With collaboration, “the oppor- sions. After setting are robust ment services to tunities are endless,” Bruno said. goals for the year Rackham for the Sherri Welch: (313) 446-1694, and agreeing to the enough. past five years. [email protected] number of staff ” With only three hours needed to ac- Maury Okun, Detroit Chamber part-time employ- complish them, the Winds & Strings ees, “We do not other two organiza- have the staff … tions pay Detroit Chamber Winds a (or) expertise to write grants,” said monthly fee and participate in the Melissa Bunker, administrative hiring and evaluation of executive and marketing director. GET THE Our bonds and CDs aren’t generating staff. Detroit Chamber Winds is “so Together, Detroit Chamber entrenched in the community they CONVERSATION much income... what can we do Winds and Great Lakes Chamber know who is funding and what STARTED Music Festival have raised just un- types of programming they are without adding risk? der $1 million in endowment funds funding,” which has helped Rack- for the two organizations since 2001. ham secure new grant funding, “The collaboration has allowed she said. us to build organizations that are This year alone, that’s helped it robust enough that people will in- to increase its operating budget; vest in them for the long term,” it’s now $200,000, up from about Okun said. $150,000, Bunker said. Detroit Chamber Winds itself That money, in turn, has al- ended fiscal 2010 with an excess of lowed it to add educational and about $4,000, up from a slight loss other programs, she said. of $141 in fiscal 2009, due to endow- “They’ve also helped us identify ment losses, he said. Its total rev- new board members and trained enue for the year was $625,000, up (Rackham) on how to define the from $589,165 last year. roles of the board to maximize the board’s impact,” things the small organization couldn’t have done Adding other groups without assistance, Bunker said. Since 2003, Detroit Chamber Winds has extended development and marketing services to other Passport to the Arts nonprofits and currently provides Being a collaborative organiza- them to Rackham Symphony Choir, tion at its core has led Detroit Motor City Brass Band, the Cultural Chamber Winds to look for other Alliance of Southeastern Michigan collaborations, Bruno said. and the School of Transnational Led by Bruno, Detroit Chamber Law of Peking University, the one Winds in September 2009 launched non-arts partner it is assisting, Passport to the Arts, a program de- based on Okun’s personal relation- signed to attract young, midcareer ship with the dean. professionals — and future donors Detroit Chamber Winds tailors — to the arts. its fund-development and capaci- The program includes Great ty-building services to each orga- Lakes Chamber Music Festival and nization, said Natalie Bruno, vice the Eisenhower Dance Ensemble, president for development and as well as Detroit Symphony Orchestra, marketing. Michigan Opera Theatre, Detroit For example, it urged Motor Film Theatre and Hilberry Theatre. City Brass Band and Rackham With the purchase of one ticket For 70 years, Schechter has been designing creative and conservative Symphony Choir to create youth or “passport,” young patrons can education programs to broaden enjoy one performance at each strategies to solve many business and family challenges. Today we their community outreach and participating cultural institution, can consult with you and your advisors on ways to increase yields strengthen their annual appeal. followed by a social activity tied to Detroit Chamber Winds plans to that event. In its first year, the re- generated from your fixed income portfolio. bring the Birmingham-Bloomfield duced-price ticket program sold Symphony Orchestra and ProMusica out its first year at 300 tickets. This of Detroit Inc. into its arts organiza- year, the program — now open to Let’s talk about it. tion collaboration in January. people of any age — sold out again, It’s secured a $200,000 grant with 400 passports, Okun said. 248.731.9500 through the Michigan Nonprofit Asso- www.schechterwealth.com ciation to extend some of the market- Cultural exchange with Indy *Securities offered through NFP Securities, Inc., (NFPSI) a Broker/Dealer and Member FINRA/SIPC. Schechter Wealth Strategies is an affiliate of NFP Securities, ing, fundraising and administrative Inc. and a subsidiary of National Financial Partners Corp., the parent company of NFP Securities, Inc. Schechter Wealth Strategies and NFPSI do not offer legal services it’s provided for years to Detroit Chamber Winds is now or tax advice. Clients must consult with their tax and legal advisors. 20101129-NEWS--0010-NAT-CCI-CD_-- 11/24/2010 10:53 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS November 29, 2010 Finance Extra: Best-Managed Nonprofits Family Service recognized for breaking down agencies’ walls BY SHERRI WELCH ganizations and their respective ready to learn. That grant fol- CRAIN’S DETROIT BUSINESS counties, at a lower, shared cost. lowed a $1.5 million grant United Jointly licensing the electronic Way made two years ago to the al- For years, community mental medical record system and shar- liance to improve access to ser- health agencies belonging to the ing the cost of a systems adminis- vices for families in Wayne, Oak- Family Service Alliance for Southeast- trator is saving alliance members land and Macomb counties. ern Michigan competed for clients $300,000 collectively on implemen- More recently, Oakland Family and funding. tation and about $50,000 each on Services secured a $3 million, three- But eventually, the system administrator’s salary. year contract under a new program Finalist they concluded Before adopting the system, the to serve severely emotionally dis- that funding agencies wrote off 10 percent to turbed children in the county, shouldn’t dictate their work — the 15 percent of their claims each year thanks to assistance from Starfish. community should. because they couldn’t get the neces- The county was impressed with the For overcoming “turf wars,” tak- sary paperwork processed in time, shared electronic record system for ing cost out of the community men- Earl said. With the Web-based sys- tal health system and improving the alliance members and with Oak- client service, the Family Service tem, they’ve reduced their claim land Family tapping Starfish’s ex- Alliance was designated by the losses to less than 5 percent, he said. pertise, Earl said. judges as a “special recognition” fi- The group now is looking at pool- By turning to Oakland Family nalist in Crain’s 2010 Best-Managed ing health care, and Starfish and and Macomb Family Services for Nonprofit Contest. Oakland Family began sharing a help in diversifying to more pri- As the economy began to sputter full-time child psychiatrist this fall. vate-pay mental health clients from in 2005, the CEOs The agencies’ joint work and ge- government-pay clients, Starfish of Oakland Family ographic reach have helped attract expects to bring in about $200,000 in Services, Macomb new grants and contracts. new revenue its first year. Family Services United Way for Southeastern Michi- And as the trust among them in- Inc. and Detroit- gan awarded $960,000 for the year creases, the agencies learn from based Family Ser- to the alliance to help run its Early each other about all aspects of their vice Inc. began Learning Communities program, businesses, sharing best practices meeting month- which teaches early childhood de- and discovering unexpected areas ly for lunches to velopment to nonprofessional for improvement, Earl said. talk about issues caregivers with the goal of getting Sherri Welch: (313) 446-1694, and opportuni- more children entering school [email protected] Earl ties for collabo- ration, “a slow dance,” as Michael Earl, president and CEO of Oakland Family and managing partner of the alliance, calls it. But there was some urgency be- hind the dance. Foundations and regional groups called repeatedly for collab- oration, and all of the agencies faced funding pressures — a reali- ty that persists today. Three of the four agencies have finances that are stressed to some degree, and one, Family Service, has a going concern paragraph in the audit opinion on its fiscal 2009 financial statements. But the judges say the agencies are doing the right things, and their broad collaboration could be replic- able among not only other commu- nity mental health agencies, but also other subsets of nonprofits. “We had competed for decades, but it was necessary to change our model in the service of the commu- nities we serve ... (and based on) the belief that the nonprofit sector needs to take a lead in solving the issues the region faces,” Earl said. As the agencies lowered their guard, opportunities emerged for collaboration in their backroom op- erations, pooling purchases, shar- ing best practices and for standard- izing services in the interests of increasing the quality of the ser- vices they provided, he said. Deeply rooted in their communities, they decided against a merger. Last year, Inkster-based Starfish Family Services joined the alliance. Early on, the alliance pooled pur- chases of office equipment, shaving 15 percent off its combined costs. It also adopted a common Web- based client management system that has eliminated paper files and enabled standardized billing, pa- tient care documentation and sharing of data across the three or- 20101129-NEWS--0011-NAT-CCI-CD_-- 11/24/2010 10:54 AM Page 1

November 29, 2010 CRAIN’S DETROIT BUSINESS Page 11 Finance Extra: Best-Managed Nonprofits Restructuring Experience Service agencies’ merger still brings results In Your Corner. BY SHERRI WELCH think (mergers) are always that add an education/career focus to a CRAIN’S DETROIT BUSINESS easy,” said Tony Rothschild, Com- mentoring program for older mon Ground president and CEO. youths in Oakland County. Common Ground’s merger with “In order to And around 2000, it brought to- The Sanctuary 12 years ago helped survive, we gether a task force of 13 organiza- remove barriers for people seeking have to find tions to expand the pool of attorneys public mental ways to work to- providing volunteer services to low- health and crisis gether,” Roth- income victims of domestic violence Finalist intervention ser- schild said. in Oakland County and to expand vices in Oakland Bloomfield the legal services available to them. County and create a single door- Hills-based Com- The decade-old collaboration way to that help. mon Ground, op- still shows results today. Both agencies provided crisis in- erating on an an- In fiscal 2003, eight volunteer at- tervention, but Common Ground nual budget of torneys helped 176 clients at Com- served adults with mental illness, Rothschild $12.07 million, mon Ground’s weekly legal clinics. and The Sanctuary served youths. continuously looks for areas it can The task force has helped lower The merger under the Common align with other nonprofits, he said. barriers for clients and added an Ground name not only made the Most recently, the nonprofit has additional legal clinic at the Oak- joint organization’s service deliv- created task forces on runaways land County Law Library. ery more efficient, it also expand- and the homeless population in This year, more than 80 volun- ed its budget, strengthened its Oakland County and is working teer attorneys and law students board, provided opportunities for with numerous other organizations have served more than 1,000 people. shared best practices among em- to identify and fill service gaps. Gary Dembs, a judge for Crain’s ployees and saved $100,000 a year. In 2003, it collaborated with the Best-Managed Nonprofit contest, Employee satisfaction also is Pontiac-based Oakland Livingston Hu- chairs the Common Ground board. high — leaders from both organi- man Service Agency to provide coun- The other judges chose Common zations have remained since the seling and support to ex-inmates Ground as a finalist in independent merger 12 years ago. and their families. Three years ago, assessment without Dembs’ vote. Bob Mollhagen “With Sanctuary, we … instantly it collaborated with West Bloom- Sherri Welch: (313) 446-1694, were on the same track. But I don’t field-based Jewish Family Service to [email protected]

First Tier Ranking in Reshaped ArtServe stresses arts advocacy Reorganization Law BY SHERRI WELCH away from professional develop- Affairs to form the Michigan Youth Contact Bob Mollhagen at [email protected] CRAIN’S DETROIT BUSINESS ment and leadership support for Arts Leadership Roundtable, which N Novi N Grand Rapids N Kalamazoo N Grand Haven N Lansing arts educators after the merger. The last year developed an arts educa- Since its merger four years ago organization moved ahead in three tion policy agenda that outlines with the Michigan Association of areas: advocacy and public policy, the goal of ensuring pre-K-12 stu- Community Arts Agencies, ArtServe capacity-building for artists and dents have access to quality arts Michigan has be- arts and cultural education. come a strong groups, and It also collaborated with the Finalist voice for the arts strategic com- Kennedy Center Alliance for arts Edu- in Michigan. munications. cation Network to develop local, The two organizations merged “Arts educa- state and national resources and after realizing they had shared tion was a big information on how to effectively funding challenges, complemen- part of our work promote arts education in Michi- tary funding sources and comple- before the merg- gan’s schools. mentary sets of constituents. er, but we real- ArtServe, which had an operat- They combined their organiza- ized as we were ing budget of $949,600 in fiscal 2010 tions, moved to a central location Goulet reshaping to ad- ended Sept. 30, has developed an in Wixom — helping to cut opera- vocacy that we arts advocacy network that has tional costs in half — and down- didn’t have the capacity,” said Pres- tripled over the past two years to sized from 50 combined board ident Jennifer Goulet. 7,000 people today. members to about 30. ArtServe worked with the Michi- It engages that network to help ArtServe, a finalist in Crain’s gan Youth Arts Association, Inter- with efforts such as preserving Best-Managed Nonprofit contest for lochen Center for the Arts and the state funding for the arts. With the the second year in a row, shifted Michigan Council for Arts and Cultural assistance of its network of support- ers who contacted Gov. Jennifer Granholm’s office by phone, letter and e-mail, ArtServe was able to You Deserve: Expert Help With Succession Planning. preserve $2.3 million in state fund- Find us at PMFA.com. ing for the arts in fiscal 2010 after the governor proposed $8 million in cuts and an allocation of just $1 mil- lion in capital projects funding for arts and cultural groups. At the local level, ArtServe has UPCOMING BREAKFAST ROUNDTABLE: engaged its network to help in pre- serving funding for arts programs December 14 in more than 20 school districts The ABCs of Selecting a Professional Trustee facing reductions or elimination of arts programming because of state All roundtables will be held from 7:30-8:30 a.m. at budget cuts. 27400 Northwestern Hwy., Southfield, MI 48034. ArtServe also has polled state po- litical candidates to give arts sup- Visit roundtables.pmfa.com to register. porters a sense of the candidates’ Seating is limited. views on the arts and future sup- port of them, and is planning events to help educate elected officials. At the request of the Kresge Foundation, ArtServe developed and led professional practice op- INVESTMENT MANAGEMENT I *TRUST SERVICES portunities offered to the Kresge *INSURANCE SERVICES I *TAX PLANNING artist fellows in literary, perform- ESTATE PLANNING I WEALTH MANAGEMENT ing and visual arts in Wayne, Oak- BUSINESS TRANSITION I PHILANTHROPIC PLANNING land and Macomb counties. Sherri Welch: (313) 446-1694, QHHGTGFVJTQWIJCHſNKCVGUQH2/(# [email protected] 20101129-NEWS--0012-NAT-CCI-CD_-- 11/24/2010 11:54 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS November 29, 2010

AT THE TABLE “ I think the “ I came back Participants in October’s panel cost of entry is ... for the discussion on recruiting and retaining young professional really low. manufacturing talent in Southeast Michigan: ” Ⅲ Natalie Bruno: Director of Jeanette Pierce, network. development, Detroit Chamber Inside Detroit ” Winds and Strings, Detroit. Bruno Elizabeth Redmond, is from suburban Chicago and Powerleap Inc. moved to the Detroit area after college for a combination of reasons. Ⅲ Newcombe Clark: Vice president, associate director, Jones Lang LaSalle, Ann Arbor. Clark grew up in Ann Arbor and India and also has lived in Paris and Fukuoka, Japan. He lives in Ann Arbor and is working toward If you don’t an MBA. Detroit “ Ⅲ Nick Gorga: Partner, Honigman Availability “ have a ... Miller Schwartz and Cohn, Detroit. “ wants people Gorga chairs the firm’s pro bono of property vibrant middle and recruiting committees. Gorga who do grew up in Troy, lived in Chicago itself is class, you’re from 2002 to 2008 and returned things. for job and family reasons. something ” not going to Ⅲ Sean Mann: Program Natalie Bruno, coordinator for the Michigan unique. Detroit Chamber thrive. Municipal League and the lead of ” Winds and Strings ” the Let’s Save Michigan Shauna Nicholson, Chris Uhl, campaign, letssavemichigan.com, dedicated to persuading public Digital Mark Comerica Bank officials to develop good public policy. Mann grew up in Livonia, lived overseas for a few years after college and returned about five years ago because he felt that “there was no place in the Detroit good for startups, but world that my efforts and energies would be better put to use.” He lives in southwest Detroit. Ⅲ Brian Mooney: Project manager, J.C. Beal Construction Inc., Detroit, with a specialty in historic preservation. “There are needs more midcareer jobs few places in the world that have the architectural legacy that this n October, Crain’s Detroit Busi- Natalie Bruno: It took me longer The need for billionaires where quick and fast, and a couple city does,” he said. Mooney was ness and Honigman Miller than I would have thought to fall for of sources of billions, be it individu- born in Rosedale Park in Detroit, I Schwartz and Cohn LLP con- Detroit, and I started to look at go- Crain’s: Some of you have been als, be it entrepreneurs, be it gov- lived in Chicago for two years vened a panel of younger profes- ing elsewhere and thought, well, if saying that as much as you like it ernment, be it foundations, be it after college and lives in sionals working I’m going to make a career move, I here, ultimately you need to be able whatever, it has to come from Clawson. Ⅲ in Southeast probably have to make that jump to make a living at a certain level somewhere, because grassroots and Shauna Nicholson: Owner, Roundtable Michigan to dis- pretty soon. I was looking at Boston, and that might require a move. groundswells and cool culture are Digital Mark. Nicholson grew up in Newcombe Clark: In two years af- metro Detroit, spent several cuss how best to I was looking at San Francisco, but great, but they’re not a silver bullet. years traveling and met “a lot of recruit and retain their peers. what I felt in Detroit is that Detroit ter I finish my MBA, I’m going to Nicholson: The grassroots people people involved in cool things, but One conclusion to note: Al- wants people who do things. have a mountain of debt, so it’s now are the people who are going to they didn’t have the same kind of though all of the roundtable par- There are so many entrepreneur- the kind of thing where Detroit and make it happen. They’re the peo- backing and community that I’ve ticipants are vested in Southeast ial people here so that the doors are Ann Arbor have been very, very ple who are going to get their always felt in Detroit.” She lives Michigan and are active partici- open when new people are coming good to me, but unless there are op- hands dirty. in Birmingham. pants in community activities, in and trying to start things. portunities for me that mean I’m Pierce: You do have to find the Ⅲ Jeanette Pierce: Co-founder, several said they would be willing Crain’s: Elizabeth, what kind of not indentured for the rest of my money. It’s not just the warm fuzzy. Inside Detroit, a nonprofit that to move elsewhere if they can’t entrepreneurial climate do you life, I have to go. I don’t know Midtown has had $2 billion worth promotes Detroit as a preferred continue to find appropriate jobs see for green tech? where the next 30 years is going to of investment in the last 10 years, destination to live, work and play — especially as they approach Elizabeth Redmond: One of the be, but I’m worried that it’s not go- and you can notice every time you by educating people about the ing to be in the city I love. city’s history, culture and their peak earning years. main reasons why I came back to drive down Woodward, so that’s community. Pierce also helped Following is an edited tran- establish a company here is for the We’ve got a lot of great young grassroots, but it’s a CDC (Commu- start Leadership Next, the United script. In some cases, comments manufacturing network, and it’s people doing a lot of above-the- nity Development Corporation). Way for Southeastern Michigan’s have been reordered to preserve interesting to see, you know, as garage cool things, but we don’t emerging leaders group. Pierce is the conversational thread. my needs grow and as I’m learn- have a lot of (Facebook co-founder a Detroit native who grew up in ing what I will need, there’s a huge Mark) Zuckerbergs, and that’s When to stay, when to leave the Morning Side neighborhood. network of companies that I’m where the jobs come from. Crain’s: Some say the key to re- She lives downtown. The entrepreneurial climate working with in Ann Arbor right Crain’s: So wealth creation is im- cruitment and retention is jobs Ⅲ Elizabeth Redmond: President, Crain’s: Several of you have men- now that are fabricating stuff for portant. and restaurants. Powerleap Inc., an Ann Arbor tioned that a strength of Detroit me on a custom basis. Clark: You can’t do it without Pierce: I think it’s community. company looking for ways to over other cities is the availability Chris Uhl: My customer base is some billionaires. It’s just not pos- Portland, Oregon, has a really high create energy from human and sible. There hasn’t been a model vehicular “floor” traffic. Redmond of a support network. Does anyone largely privately held manufactur- unemployment rate, but people are grew up in Dexter and went to the want to elaborate on that? ing companies throughout the re- that’s proven out, so it’s either the moving to Portland. There’s a study University of Michigan, where she Shauna Nicholson: I think one of gion. I think there’s an immense government throwing money at it, that shows people are choosing created her company and then the cool things about Detroit is that depth of knowledge in those com- or it’s private individuals. place over jobs. They decide where moved to Chicago to try to make there’s so much area, so much panies. They’ve been here for gen- Ann Arbor’s got a lot of million- they want to go, and they go there, it grow. She moved back to Ann property. I have never paid for an erations, accumulated a lot of aires but not a lot of billionaires. and they either create a job or they Arbor about 18 months ago after office space. I’ve worked in co- wealth, done a lot of things. If we Detroit’s got a few billionaires, but find one when they get there. receiving a business accelerator working spaces with other entre- can find a way to connect them to they’re not really dumping their Clark: You touched on the two grant from Ann Arbor Spark. preneurs, and a lot of business own- these entrepreneurs, I think that’s money, and even then it’s filling things: They’re choosing a place, Ⅲ Chris Uhl: Vice president, ers are actually donating spaces. a powerful component we can up the Grand Canyon with a gar- and they’re choosing a few places. middle-market banking, Comerica In Birmingham, where I live, have in this region. den hose. So it’s just economically This is not a unique Detroit prob- Bank; chair, United Way’s not possible to move it forward as Leadership Next. The Grand there’s actually a place called Ur- We have manufacturing knowl- lem. Ninety percent of the country Rapids native moved here bane Space, which is basically a edge here that doesn’t exist any- quickly as we’d like to see it. is losing population to 10 percent because his wife is from here. “I bunch of sole entrepreneurs who where else in the world, and if we Uhl: If you don’t have a stable of the country. had this dissonance with living show up because it’s nice to work can work on some of these green and vibrant middle class, you’re Brian Mooney: This was a city here. I knew I loved it, but I with other people. I think avail- technologies and ideas like Shau- not going to thrive as a region, ei- that was on top of the world when thought there was something ability of property itself is some- na’s and connect them to the peo- ther. I’d argue that we don’t have it was built. A lot of that is really, wrong with me for loving it. But thing unique. ple that have been there and done those opportunities right now in really downtrodden at this point, when my daughter was born three- Jeanette Pierce: I think the cost that and can steer you around large amount. but pieces of that are there. There and-a-half years ago, I decided to of entry is really low. We have a some of the pitfalls of entrepre- Clark: To see change in a way are structures here that are ab- go all in and do what I could to we’d like to see it in our lifetime, really revitalize this region.” 3,500-square-foot space on Wood- neurship, I think that would be ward that was practically donated. something of unique value. the money’s got to come from some- See Next Page 20101129-NEWS--0012,0013-NAT-CCI-CD_-- 11/24/2010 11:28 AM Page 2 Xxxxxxxxxx

November 29, 2010 CRAIN’S DETROIT BUSINESS Page 13 “ Money’s got “ I was to come from greeted with somewhere open arms.” quick and Nick Gorga, fast. Honigman Miller ” Schwartz and Cohn Newcombe Clark, Jones Lang LaSalle “ I think “ It’s so much stability is cooler to find overrated.” something that Sean Mann, Michigan Municipal was lost and League rediscovered.” Brian Mooney, Photos by J.C. Beal Construction Inc. Nathan Skid/CDB

From Previous Page schools recruited to come here, mean, you cannot walk away from solutely phenomenal that have and when they came they were it without being inspired and been mothballed for 20-plus years. told about Northville, Novi, Troy. thinking that the ultimate way for I’d argue it’s so much cooler to We have to think about that be- me to give back to my city is by find something that was lost and is cause if you go to Chicago, you’re opening up a business and start- rediscovered than go to the Em- moving to the north side of Chicago. ing commerce and paying taxes. pire State Building and go, “Oh, Not a lot of young people right out of Pierce: One of the things we do is that’s awesome.” college move to Schaumburg. We try to connect the corporate, his- Nicholson: I hate to say it, but I do don’t do urban well enough. toric power base and grassroots cre- definitely feel like there’s a tipping atives. A lot of times, the two have point. I’m not positive that I will be no idea what the other is doing. here the rest of my life, to have chil- Sitting at the kids’ table Ninety-nine percent of the peo- dren here or anything like that. Crain’s: How much influence do ple who live in the region have no Clark: You have a sense of oppor- you think young professionals concept of what’s actually happen- tunity cost? have civically? ing. There are so many projects Nicholson: Yeah, there’s an op- Clark: I serve on boards that I’ve going on that it’s really difficult to portunity cost that I’ll be missing been on for seven, eight years, and keep up with, but we need to get out on if I don’t pursue the next I’m still the youngest by 15 years. I that word out there a little more. logical step in my career. You think there is tons of support for Mooney: Well, I would argue have to take that next step and say entrepreneurs. There’s a push for that’s what’s coming for Detroit. “OK, I’ve maxed out what I wanted the new economy, but try to bust Newcombe’s experiences are simi- to do with this. I’m ready to move through — try to sit at the adults’ lar to my experiences. I sit on sever- on to the next thing.” table in certain regards — and it’s al boards in suburban communities Uhl: I’m jumping on that band- harder. God forbid you have ques- that have that sort of good-old-boy wagon. I live in Berkley. I adore tions about what Spark does in Ann network that’s entrenched in that where I live. I have a great sense of Arbor. Don’t you dare touch it. generation’s politics. community. I’m in the city all the Ann Arbor is one of the only They’re in their city, and time with my family and love it cities in Michigan that doesn’t they’ve been there for 35 years. So here, too, but I’m 33. I have a young have an economic policy. We’ve as a young person, trying to get daughter and another on the way. got a great cheerleader, and Spark into that system and work through If I feel like I’m shorting myself does great work, but we don’t that system is very difficult. by staying here during my prime want to necessarily look at where In Detroit, I think it’s the re- earning years — say, 40-65 — then are we deficient. verse. I think we have somewhat of despite all that I do, I’m gone. So I think there is support, but a broken system. We’ve had some That’s why I’ve decided to try to it is very much the “kids’ table” serious issues in this city, and what make that push for the 10 years support, and I think the approach that’s done for young people is, it’s from 30 to 40 to see if I can tip it to to young professionals ends up like, “OK, we’ve screwed it up so a place I can stay. sometimes being, “Let’s throw a bad that maybe the next generation Sean Mann: I think stability is cocktail party.” will have some ideas that we should overrated. I think we’re coming Nick Gorga: I’ve had the exact op- listen to.” from a perspective of being (in) posite experience on boards. I think what’s happening in lit- early transition in your career, When I moved back here and start- tle pockets in the city isn’t making and if we’re trying to target that ed knocking on doors and getting millions of dollars yet, but I would group to move here, we’ve lost. I involved, especially doing the pro say in 10, 15 years, you’re going to think it’s the younger people right bono work, I was meeting every be looking at a population of peo- out of college, the ones that every representative or 501(c)(3) in the ple that were here at the begin- study shows are more mobile. Detroit area and asking how we ning of something that then just I started a soccer league in the could help. I was greeted with had a tipping effect. summer in the city that got way open arms, questions about how Nicholson: What I’m seeing in my too much attention, but it was ba- we do things in Chicago, how we own business is seeing both of sically built on the idea that in the could do things better here. those generations looking for a city of Detroit we don’t recognize Mann: The big institutions here medium in which they’re both the distinct neighborhoods that are lagging in their outreach to the comfortable communicating. It make it up, so all the teams were younger population, but the doesn’t always happen on a board based around neighborhoods. younger population is creating or in a nice office space. We ended up getting more than their own institutions. I think of A lot of times in my business it’s 300 people playing in the league. We Open City, which is like the young happening digitally, and in the digi- had 11 neighborhoods represented. chamber of commerce here. tal world I don’t know to be intimi- It turned out to be this amazing They’ve done more for business dated by you, because to me you community-building experience de- startups than the Detroit Regional look like the same screen name as veloping neighborhood pride. Chamber’s ever done, and that’s be- my 50 other friends and my 13-year- I had no fewer than six people cause it’s a group of young entrepre- old cousin, so it levels that playing come up to me and tell me they’re neurs who get together monthly. ground to the point where people moving into the city because of the They discuss the obstacles of are actually willing to put them- soccer league. They were these at- opening up a business here in the selves out there so they’re fostering torneys who were from East Coast city, and that’s a support group. I new relationships. 20101129-NEWS--0014-NAT-CCI-CD_-- 11/24/2010 10:55 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS November 29, 2010

CRAIN'S LIST: LARGEST INFORMATION TECHNOLOGY COMPANIES Ranked by 2009 revenue

Full-time Company Revenue Revenue local Address ($000,000) ($000,000) employees Rank Phone; website Top executive 2009 2008 Jan. 2010 Type of business Compuware Corp. Peter Karmanos Jr. $892.2 $1,090.5 NA Software and professional services 1. 1 Campus Martius, Detroit 48226 chairman and CEO (313) 227-7300; www.compuware.com

Syntel Inc. Bharat Desai $419.0 $410.4 80 IT outsourcing, knowledge process outsourcing, industry-specific services, 2. 525 E. Big Beaver Road, Suite 300, Troy 48083 chairman application development and management, e-business services, architecture (248) 619-2800; www.syntelinc.com consulting and support, IT infrastructure management, cloud computing, data warehousing and business intelligence, application testing, migration solutions TechTeam Global Inc. Gary Cotshott $211.2 $260.0 NA Information-technology outsourcing, government technology services, IT 3. 27335 W. 11 Mile Road, Southfield 48033 president and CEO consulting and systems integration, technical staffing and learning services (800) 522-4451; www.techteam.com

Strategic Staffing Solutions Inc. Cynthia Pasky $171.0 $160.0 250 Provides consulting and staff augmentation services, vendor management 4. 645 Griswold St., Suite 2900, Detroit 48226 president and CEO programs, executive search services, call center technology and an IT (313) 596-6900; www.strategicstaff.com development center to financial institutions, energy companies, telecommunications, government agencies, retail and health care industries. CareTech Solutions Inc. James Giordano $153.3 $139.2 677 Information-technology and Web products and services provider for U.S. 5. 901 Wilshire Drive, Suite 100, Troy 48084 president and CEO hospitals and health care systems (248) 823-0800; www.caretech.com

Altair Engineering Inc. James Scapa $139.0 $152.0 435 A global software and technology company focused on engineering simulation, 6. 1820 E. Big Beaver Road, Troy 48083 chairman and CEO advanced computing, enterprise analytics and product development (248) 614-2400; www.altair.com

Tata Technologies Warren Harris $134.4 $150.0 NA Product life-cycle management and product development IT services; 7. 41050 W. 11 Mile Road, Novi 48375-1302 president proprietary software and knowledge management software systems (248) 426-1482; www.tatatechnologies.com

HTC Global Services Inc. Madhava Reddy $111.0 $85.0 260 Application development and maintenance, business process management, 8. 3270 W. Big Beaver Road, Troy 48084 president and CEO document and content management, and PMO services (248) 786-2500; www.htcinc.com

Acro Service Corp. Ron Shahani $102.0 $105.0 850 Staff augmentation (IT, engineering, office support), outsourcing and IT and 9. 39209 Six Mile Road, Suite 250, Livonia 48152 president, chairman and engineering consulting (734) 591-1100; www.acrocorp.com CEO

VisionIT David Segura $101.0 $102.0 485 IT managed services, staffing and vendor management 10. 3031 W. Grand Blvd., Suite 695, Detroit 48202 CEO (877) 768-7222; www.visionit.com Christine Rice president

This list of leading Detroit-area computer companies is an approximate compilation of the leading such companies that research, design, manufacture or invent equipment or software, plus companies that provide sophisticated computer services such as systems design, programming and information retrieval. It is not a complete listing but the most comprehensive available and covers Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies based elsewhere are ranked by their revenue in the five-county area and not by total revenue. Unless noted, the companies provided the information. NA = not available. LIST RESEARCHED BY ANNE MARKS

It’s evening. It’s part-time. It’s Northwestern.

MASTER OF SCIENCE IN INFORMATION SYSTEMS

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November 29, 2010 CRAIN’S DETROIT BUSINESS Page 15

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

PEOPLE BIOTECHNOLOGY HEALTH CARE Ali Fattom to senior vice president of Lori Rund to vice president of product vaccine research and development, management and market intelligence, NanoBio Corp., Ann Arbor, from vice Health Alliance Plan, Detroit, from in- president of research and early devel- terim vice president of market devel- opment, Nabi Biopharmaceuticals, opment, Health Alliance Medical Rockville, Md. Plans, Urbana, Ill. EDUCATION HOSPITALITY Juliana Mosley to Bruce Dall to senior vice president of finance administration, MotorCity vice president of Casino Hotel, Detroit, from vice presi- student affairs dent of finance and property adminis- and enrollment tration, and remaining CFO; and Jen- management, ny Holaday to senior vice president of Marygrove Col- operations, from senior vice president lege, Detroit, of marketing. from vice presi- dent of student af- LAW fairs, Philander Smith College, David Gubbini to partner, Honig- Mosley Little Rock, Ark. man Miller Schwartz and FINANCE Cohn LLP, Detroit, Nick Philko to as- from senior coun- sistant vice presi- sel, Foley & Lard- dent of employee ner LLP, Detroit. benefits, Willis of Jessica Allmand Michigan Inc., to member, Daw- Farmington Hills, da, Mann, Mulc- from employee ahy & Sadler PLC, Bloomfield Hills, benefit producer, Gubbini from of counsel, 8I\ZQUWVa965. for all of 2011. Total Print and Digital Distribution – 4,::(.,& 100,000 50,000 digital editions delivered via e-mail I Crain’s Detroit Business online readers I Select Black tie Charity Preview attendees I Media I Automotive dealers in Metro Detroit 50,000 print distribution Includes: I Charity Preview attendees ISSUE DATE: Jan. 12, 2011 | AD CLOSE: Dec. 17, 2010 I Supplier Days For more information or to reserve space I General public MARKETING ‡ PR ‡ DESIGN ‡ NEW MEDIA call Marla Downs 313-446-6032 or identitypr.com I Special supplement polybagged with Crain’s e-mail [email protected] Detroit Business on Jan. 17 20101129-NEWS--0016-NAT-CCI-CD_-- 11/24/2010 11:33 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS November 29, 2010

BUSINESS DIARY ACQUISITIONS their contributions to their communi- device and deliver multiple systems ties and Michigan’s economy. Entries for evaluation. TriMas Corp., Bloomfield Hills, a man- must be submitted by midnight ufacturer of engineered and applied North American Bancard, Troy, an- Dec. 3. For more information, visit nounced its subsidiary Point & Pay, I MAGINE THE PLACES THEY WILL GO. products, acquired the stock of South Texas Bolt & Fitting Inc., Houston, www.nawbogdc.org/home.php. Haines City, Fla., has been chosen by Texas. STBF will be integrated into the Wisconsin County Treasurers’ As- Lamons, Houston, Texas, a TriMas CONTRACTS sociation, Eagle River, to be its new company, as part of the TriMas ener- Lawrence Technological University, provider of tax payment systems. gy segment. Southfield, and Grand Rapids Commu- Also, six Wisconsin counties have Altair Engineering Inc., a provider of nity College, Grand Rapids, signed an signed to participate in the Point & simulation technology and engineer- agreement that allows GRCC students Pay program. Point & Pay also signed ing services, has entered into an to transfer credits toward a bachelor’s an agreement with Opal Data Tech- agreement to acquire SimLab Corp., degree in architecture at Lawrence nologies, Providence, R.I., linking Santa Margarita, Calif. Tech. Point & Pay with Opal, a provider of fi- Carhartt, Dearborn, a manufacturer of nancial software and services to CALL FOR NOMINATIONS work clothes, was chosen by West Rhode Island municipalities. The National Association of Women Coast Customs, Corona, Calif., to pro- Business Owners Greater Detroit vide premium twill work clothes as EXPANSIONS Chapter, Southfield, is seeking nomi- the official uniform of WCC. Two Men and a Truck, Lansing, nations for the 17th annual Top 10 Advanced Photonix Inc., Ann Arbor, opened a new franchise location Michigan Business Women Awards, signed an agreement in principle with at 1250 Rankin Drive, Troy. Tele- to honor and recognize the achieve- In-Q-Tel, Arlington, Va., to engineer a phone: (248) 356-6683. Website: ments of women business owners and low-cost terahertz anomaly detection www.twomenandatruck.com.

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November 29, 2010 CRAIN’S DETROIT BUSINESS Page 17 LTU: Plan would link entrepreneurs with proven innovators ■ From Page 1 It revealed that Michigan’s en- identified in the study. vet ideas coming in as well.” The funding model could in- trepreneurial landscape remains “We want to be able to bring the Lawrence Tech and the study’s volve a membership fee or ser- fragmented, despite a renewed fo- We want to be able corporate innovators to the table stakeholders believe the new con- vices provided, Brucki said. cus on entrepreneurship since the “ to provide innovation best prac- sortium would create an attractive “We need to understand the sus- economic downturn. to bring the corporate tices and product-development business environment to which tainable financial business model “We need to be more collabora- best practices that the early-stage national and international compa- for the next five to 10 years with- tive in innovation,” said Mark innovators to the and second-stage companies nies could look for innovation. out ongoing grants,” he said. Brucki, executive director of eco- haven’t mastered yet,” Brucki Tammy Carnrike, Detroit Regional “We’re really piecing this together nomic development and govern- table. said. “Hopefully those relation- Chamber COO, said in an e-mailed right now, and we’re on to some- ment relations at Lawrence Tech ” ships will result in securing new statement that the study identifies thing, but this is the 30,000-foot and leader of the study. “There’s Mark Brucki, customers as well.” the value of public-private partner- stage right now, and we don’t have an opportunity here to supply Lawrence Technological University Pavan Muzumdar, engineering ships to grow small businesses. all the answers yet.” what’s missing.” entrepreneur in residence at “The chamber supports the Brucki said the initial center What’s missing is a method to currently have properly?” Lawrence Tech and managing di- study’s recommendation to pursue likely will be on Lawrence Tech’s connect the existing entrepreneur- The study also indentified po- rector of Madison Heights-based a B-to-B collaborative consortium campus but may move when the ial infrastructure to provide a tential steps associated with devel- private equity advisory firm Pieris to purposefully foster innovation consortium board eventually takes more effective support system, the oping a successful business envi- Capital LLC, said a consortium will and entrepreneurship to help us over leadership. Lawrence Tech study said. ronment, such as creating a allow early-stage entrepreneurs to move into the 21st century era of also intends to create a pilot group “We want to find a way to con- product-development pipeline be- take products to market more collaboration,” she said. to provide concrete results of a nect second-stage and early-stage tween entrepreneurs and corpo- quickly due to relationships forged The survey stakeholders also working consortium. companies with corporate innova- rate stakeholders as well as tech- with proven innovators. will reconvene next month to draft For a copy of the feasibility study, tors,” he said. “We’re looking for nology-sharing alliances. “A consortium might facilitate a white paper outlining a specific visit www.iereport.ltu.edu. Send how to help these companies do This collaboration would be the process faster,” he said. “Cre- framework for the center. The feedback to [email protected]. this effectively and efficiently uti- done through the creation of the ating a strategic partnership white paper will be completed by Dustin Walsh: (313) 446-6042, lizing existing resources.” business-to-business consortium, through the consortium will help the end of the year, Brucki said. [email protected] Even with an increase in federal grants and support from organiza- tions like Ann Arbor Spark and Tech- Town, the study’s participants iden- tified the need for more support in accessing capital, securing new cus- REAL ESTATE tomers, access to market data and assistance in product development, APARTMENT BUILDINGS COMMERCIAL PROPERTIES OFFICE SPACE RESIDENTIAL PROPERTY product launch and advocacy. Jaron Rothkop, managing part- WANTED: APARTMENTS WANTED: NEIGHBORHOOD Flint Township Office Building WANTED: DEVELOPED LOTS ner at Troy-based independent 1975 OR NEWER SHOPPING CENTERS R&D firm Rhode Solutions Inc. and • 30 lot minimum with no maximum • 50,000 sq ft or greater • Developed Lots between 50’ to 80’ wide survey participant, said his com- • 40 or more units • Must have Anchor Tenant with utilities at the site pany would benefit from under- • Detailed 12 month operational trailing cost, • Price must reflect vacancies and current standing more about the concerns previous year end operating statement and • Wayne, Oakland, Macomb, and income • Class A Office Building Washtenaw Counties of corporations’ use of indepen- current rent roll needed • Aggressive cap on exsisting income • I-69 / I-75 / US23 near Bishop Airport • Cash buyer dent firms like his. • Unit breakdown with square footage and • Cash buyer • Up to 20,000 Sq. Ft. Available - 300 car parking construction makeup • Fully Furnished with 100 pre-wired workstations Send information to: “I want solutions to existing Send information to: • Cash buyer • 800 kw backup generator Grand Sakwa problems,” he said. “Everyone Grand Sakwa • General Offices, Call Center, Data Center or P.O. Box 252018 Send information to: P.O. Box 252018 knows how to get to customers, but Medical Offices West Bloomfield, MI 48325 Grand Sakwa West Bloomfield, MI 48325 what do we have to offer them? Are P .O. Box 252018 248-496-3405 we addressing the problems we West Bloomfield, MI 48325 INDUSTRIAL PROPERTY AUCTIONS AUCTIONS Luxury Real Estate Auction Quantum Ventures WHITE EAGLE SUBDIVISION AUCTION NOTICE Rail - Easily Accessible - Low Rates Available: On-site Mgmt - Exterior Storage Plotted sub, fully approved for 83,719 SF www.waretechindustrialpark.com Auction on-site Sunday, December 12th at 1pm plans to expand residential development. CATELLUS GROUP, LLC 43,000 SF (810) 695-7700 71 units spread over 125 acres gross (108 acres Auburn Hills corporate develop- net) with finished underlying infrastructure ment and investment firm Quan- including new water treatment plant. tum Ventures of Michigan LLC ex- Ready for vertical development on north side of AVAILABLE NOW pects to launch a software White Lake Road, west of Eagle Road, application and hire a sales staff Highland Township, Oakland County. 4,000 to 100,000 sq. ft. early next year for portfolio com- For building restriction details, water system specs, Also 10,000 & 25,000 sq. ft. pany Printaforest LLC. bidding rules and additional information, contact: The company hopes to begin hir- Kenneth M. Schneider -- 313-237-0850 Free Standing Bldgs w/truckwells. ing a sales staff of up to 15 people RESERVE PRICE $390,000.00 1 Mile from Metro Airport starting in January or February, af- Free and clear of liens and interests. ter the software goes live at the uni- December 6, 2010 at 2:00 p.m., 3900 Penobscot REA CONSTRUCTION 32845 Whatley Rd., Franklin MI versities. It now has four employees. Building, 645 Griswold, Detroit, MI 48226 Garrett Morelock, president of (734) 946-8730 Preview and Registration at Noon the 3Sixty Group platform of com- ANNOUNCEMENTS panies at Quantum, said the com- Also Heavy Industrial Open House on Sunday, December 5th from Noon-3pm pany completed its software for Property Owners Land Available As featured on MTV Teen Cribs, the heart of this home offers beauty, the green advertising company a REO Advisors elegance, and entertainment to family and friends alike. At 9,961+/- sq. ft., few weeks ago and hopes to go live Nationally trained Commercial Real Estate veteran www.reaconstruction.net with over 30 years of experience available on an this residence features 6 en suite bedrooms with everything necessary to with the system at Michigan State "as needed" basis to provide: make visiting family and friends feel pampered and comfortable, 10 University and Eastern Michigan Uni- Due Diligence Reviews: bathrooms, bonus game room, and 4 car heated garage – where no expense versity within a few months. inspect, evaluate & report as been spared! Entertaining is effortless with this state-of-the-art gourmet Printaforest, founded by MSU Property Management: oversight & monitoring kitchen; you’ll never want to eat out again! At 3760+/- sq. ft., the basement graduate and company President Pontiac Warehouse for Lease is its own getaway with a 1950’s style diner with juke boxes and retro-style bar. Budgets: Best Deal in Town! Joseph Miller, was acquired by prepare/implement/monitor Indoor hockey and basketball court for sports fans, and a little girl’s dream Quantum Ventures earlier this Leases: with a private arts and crafts room equipped with painting counters and year. The company places opt-in review/abstract/prepare escalation built-in cabinets. Ready to relax? Head to your private movie theater where advertisements from participating Construction: the electric screen descends from the ceiling, and it’s showtime! The outdoor prepare RFP, obtain bids, oversee companies onto printouts for stu- sanctuary will take your breath away with a custom in-ground pool, pool dents and faculty from the univer- Mike Irwin -- 313-770-3224 • Warehousing, Machine/Die Storage, house with an outdoor kitchen and grill for entertaining, tennis court, private sities’ computers, then splits the MI_Commercial Real Estate LLC Manufacturing www.mi-commercial-llc.com golf course, and coy stocked pond. Don’t let Franklin’s best kept secret slip revenue with the universities. • M/59, Widetrack, and Woodward Area away! Call today for details! A portion of Printaforest adver- • 5,000 to 200,000 Sq. Ft Available with Offices, Short or Long Term tising revenue then goes to the Call or email today for information on a custom advertising plan! Leases Rose Auction Group, LLC nonprofit Nature Conservancy to • 8 Interior Truck Wells, 16 Ft. Ceiling 877.696.7653 or roseauctiongroup.com fund reforestation efforts. [email protected] Heights, Sprinklers, Heated, Buss Duct, — Chad Halcom 313.446.6068 and Air Lines. 248-496-3405 Beth Rose, CAI Auctioneer - #2801000078 20101129-NEWS--0018-NAT-CCI-CD_-- 11/24/2010 3:30 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS November 29, 2010 Visa: Program spurs jobs T hank You FROM ■ From Page 3 though the number of foreigners willing to invest $500,000 or more in EB-6 program proposed a U.S. business in exchange for a visa roughly tripled in the past fis- with $250K threshold cal year. The U.S. State Department MICHIGAN An additional type of visa is in reported the number of immigrants (investors and their immediate fam- the works for immigrant in- BUSINESS ily members) who obtained EB-5 vestors in U.S. businesses. visas jumped from 1,443 in fiscal U.S. Sens. John Kerry, D-Mass., Dick DeVos Joseph Welch Paul McKenney IN PARTNERSHIP WITH 2008 to 4,218 in the fiscal year that and Dick Lugar, R-Ind., intro- Grand Action ITC Holdings Varnum ended Sept. 30, 2009. duced the StartUp Visa Act of Alte, founded by former employ- 2010, aka the EB-6 visa bill (em- ees of Silicon Valley-based electric ployment-based sixth category carmaker Tesla Motors Inc., is the re- visa), in Congress earlier this Crain's Detroit Business would like to thank the cipient of $13.5 million in EB-5 fund- year. It would give immigrant en- trepreneurs who invest $250,000 attendees, panelists and sponsors of the Oct. 29 ing from the Green Detroit Regional Center, which collects the foreign in- or more in a business a path to event: "East meets West: What can business vestment dollars, as its first invest- permanent U.S. residency for the learn from each other?" A special thanks to the ment. The center will provide investors and their families. Grand Rapids Chamber of Commerce and Detroit $20 million to Alte in two phases, The bill is awaiting considera- tion in the Senate Judiciary Com- Regional Chamber for their support. Thomas said. Simon Ahn, principal at SMS In- mittee. When Congress resumes in January, the legislation will be PRESENTING SPONSOR vestment Group LLC and founder of Sandy Baruah Susan Woolner John Rakolta the Green Detroit Regional Center, reintroduced, according to an e- mail from Kerry press secretary Detroit Regional CBS Radio Walbridge said foreign investors are interest- Chamber ed in emerging technologies in the Whitney Smith. United States. For their investment, the entre- preneurs would receive a two- PLATINUM SPONSOR Thomas led the Michigan Techni- cal Center for Tesla. Tom LaSorda, year visa. After two years of being former Chrysler LLC president and in business and creating at least vice chairman, serves on Alte’s five full-time jobs, a green card board. would be approved, according to GOLD SPONSORS LOCATION SPONSOR The investment allows Alte to U.S. Citizenship and Immigration speed up hiring and create more Services. than 300 jobs by the end of 2011 as it Five EB visa categories already prepares to retrofit fleet vehicles exist. They range from EB-1, for with its electric drivetrain. As re- priority workers, to EB-5, re- served for those who invest Kevin Contat Denise Christy Marcie Palmer ported by Crain’s in February, the company plans to invest $51.3 mil- $500,000 or more in a business. Huntington Bank Humana Nichols lion in its Auburn Hills assembly — Marti Benedetti plant to manufacture the hybrid- electric vehicle powertrains. must be placed in escrow before The EB-5 funding also allows Alte submitting an application. to meet matching requirements for Steve Tobocman, former state a $64 million alternative energy representative and Democratic loan from the U.S. Department of En- house majority leader, wrote a ergy, which Alte has been pursuing Global Detroit study this year fund- for 23 months. A decision on the ed by the New Economy Initiative, the loan is expected soon, Thomas said. Detroit Regional Chamber and the “The EB-5 (funding) provides Skillman Foundation. Alte with momentum,” Ahn said. The study came up with recom- CREATING CLEAN AND HEALTHY “This also helps Alte get to market mended strategies, one being the FACILITIES THROUGH HAND HYGIENE much more quickly.” creation of an EB-5 investor region- Alte demonstrated its technology al center in Southeast Michigan. at the Ford Proving Grounds in “We brought all the counties and economic development groups in 385(//®*UHHQ&HUWLßHG,QVWDQW+DQG6DQLWL]HU Dearborn in early November to oth- er potential investors. the Detroit area and talked about Ý0HHWVWKH(FR/RJRæKDQGVDQLWL]HUVWDQGDUGIRU The Green Detroit Regional Cen- what EB-5 centers can do,” Toboc- Clean & Healthy Facilities HQYLURQPHQWDOOHDGHUVKLSDQGSURYHQSHUIRUPDQFH ter is one of four approved U.S. Citi- man said. “It can be an important tool for leveraging low-cost capital.” Safe Shipment of Products Ý$YDLODEOHLQERWKJHODQGIRDP zenship and Immigration Services centers in Michigan. There are Ben Melitz, executive director of Ý.LOOVRIPRVWFRPPRQJHUPV roughly 140 regional centers in the the nonprofit Macomb Cultural and Ý0DGHZLWKQDWXUDOO\UHQHZDEOHHWKDQROLQD country. The five EB-5 authorized Economic Partnership, wants to bring www.enichols.com UHDGLO\ELRGHJUDGDEOHIRUPXOD counties in the state are Wayne, a regional center to Macomb Coun- Lapeer, Livingston, Macomb, Oak- ty. “We have businesses that would land and St. Clair. like to expand in our county that Foreign investors, in turn, get can’t get loans,” he said. their hands on a U.S. visa, some- However, facing budget woes and thing that’s typically not for them- the November election, Macomb selves, Ahn said. County Commissioners voted down Ahn said most investors are look- instituting an EB-5 program in the ing for the green card to support county in September. their children’s college education, Meanwhile, Ahn said his firm is not their own. going to invest in other “green” During the recession, interest in Michigan projects — a wind turbine the program has accelerated, said company and a lithium-ion battery Maureen Krauss, director of eco- company — through the regional nomic development and communi- center this year. ty affairs for Oakland County. “We’re going to do at least Krauss said the county is aware $30 million to $40 million this year,” of the EB-5 program but has not he said. “I hope we can hit $50 mil- used it because of the costs involved lion next year.” in setting up a regional center. The Other investment firms can fund county would prefer to work with a projects through the Green Detroit center regionally. “We know it has Regional Center but will need Ahn’s worked successfully other places, ” approval. she said. “Cash is king, and nobody is will- Applicants apply to the USCIS for ing to invest in anything,” Ahn visa qualification by submitting im- said. “The only way to make these migration forms, personal financial companies work is EB-5 funding.” 1LFKROV‡:HVW5RDG:L[RP0,‡‡ZZZHQLFKROVFRP information, business plans, legal Dustin Walsh: (313) 446-6042, briefs and other documents. Funds [email protected] 20101129-NEWS--0019-NAT-CCI-CD_-- 11/24/2010 3:27 PM Page 1

November 29, 2010 CRAIN’S DETROIT BUSINESS Page 19

RetroSense: Algae gene may aid blind THE MILLER LAW FIRM ■ From Page 1 a professional corporation cells into photosensitive cells, al- Town that was created by the New ing Lipitor. lowing limited vision for animals Economy Initiative to support early- Novel approach or not, that had been blind. stage companies, has agreed to in- Ainsworth might have more trou- Ainsworth, company founder vest $50,000 in the company once it ble getting venture capital for gene and CEO, licensed the technology reaches $500,000 in fundraising on therapy than if he were in some- from WSU, based on work by re- its seed-round target of $700,000. thing more traditional, like medical searcher Zhuo-Hua Pan. He hopes Terry Cross, a local angel in- devices. There have been several that what has worked in animals vestor and business consultant, has high-profile examples of illness or eventually will work in humans. If agreed to advise the company on death during other gene-therapy so, it will bring partial black-and- fundraising and business strategies trials over the years. For another, white vision to those with such dis- as it continues to raise that seed- the time to market is often long and eases as retinitis pigmentosa and stage round. He was an early in- costly. macular degeneration. vestor in Google, executive-in-resi- “There is a huge opportunity if Our firm specializes in litigation: Ainsworth said the goal is for dence for entrepreneurship at WSU you get it right, but there are very, • Complex Commercial and Business people to be able to identify some- and interim CFO at another start- very, very few gene therapy compa- one sitting across the table from up, Ann Arbor-based InfoReady nies that have ever been licensed,” • Shareholder and Partnership them, for example, and to see well Corp., a spinoff of DGI Infotech Inc. said Lindsay Aspegren, partner in • Automotive Supplier enough to maneuver around a that collects information about new Ann Arbor-based North Coast Tech- • Class Actions home or office and out and about as grants from federal, state and phil- nology Investors LP. “It’s replete with pedestrians. anthropic sources and sends out opportunities, but there’s still a • Employment Currently, there are no drugs or alerts to university researchers and question of time to market and the • Family Law and Probate Litigation procedures approved by the U.S. units of government. capital intensity it will take. But (248) 841-2200 Food and Drug Administration to slow Dr. George Williams, a retinal gene therapy for congenital eye dis- 950 West University Drive, Suite 300 the progression of those diseases, surgeon and chairman of the de- eases does show promise.” millerlawpc.com Rochester, Michigan 48307 much less to improve or restore the partment of ophthalmology at Mary Campbell, managing part- vision of those affected. William Beaumont School of Medicine ner of the state’s oldest VC firm, There are at least six years of re- at Oakland University, has joined Ret- Ann Arbor-based EDF Ventures, said search and animal and human tests roSense’s advisory team as scientif- that while the field might still have before RetroSense can have any- ic adviser. a stigma for some investors, “I don’t thing on the market — it hopes to “Quite frankly, I talk to a lot of think the space is tainted. I think begin a larger round of small-ani- people about new retinal therapies. gene therapy holds tremendous mal studies early next year and be- Most aren’t unique and have five or promise. Over gin FDA Phase I tests in 2012 — but six competing teams working the last 20 years, it has recently gained traction on a against them,” said Williams. we’ve learned a variety of fronts: “The first thing that is appealing lot about what the most wonderful It signed a lease and moved is this is an unmet need. The second we didn’t know. into a small Ann Arbor office in late is that, to my knowledge, Ret- Yes, there’s still time of the year... October, going from a virtual to a roSense is the only group looking at a longer timeline real company. The lease includes this approach,” he said. “That it to market. And lunch time. an option to add space as needed, worked in mice is very impressive. there have been but for now the company will sub- The next hurdle is to make the leap disappointed in- vestors in the contract manufacturing and toxi- from rodents to humans, and Moth- Campbell Join us for lunch cology testing. The company has er Nature never gives up her se- past, but there during the holidays. three employees and is looking to crets easily. But there’s no reason to will be newly emerging investors hire a chief medical officer. think it isn’t doable. We know how who will come to gene therapy with December 6th–24th Early in November, the compa- to implant genes. There’s no reason a greater understanding and more ny was awarded a grant of $163,000 why it can’t work if they get the fi- enthusiasm.” Monday–Friday | 11:30am–2:00pm from the Qualifying Therapeutic nancial resources they need.” Neither Campbell nor Aspegren Discovery Project, a joint program “It’s primarily of interest be- are investors. of the National Institutes of Health and cause a great deal of work has al- Ainsworth said one argument in the Internal Revenue Service, which ready been done with pharmacolog- RetroSense’s favor is that animal Ainsworth said will allow the com- ical studies. There’s a good basis to and human trials will be shorter pany to begin manufacturing and see the potential in humans,” said and less costly than for typical FDA testing. Ted McGuire, who will help Ret- drug trials. In those trials, re- Also this month, Ann Arbor roSense with regulatory and safety searchers need larger trials to de- Spark agreed to provide consulting issues as it prepares for Phase I tri- termine how much better new Troy | 248.269.8424 | 755 West Big Beaver Road and other support services, which als in two years. He has 35 years of drugs might be than standard regi- under Spark’s business accelerator experience in large pharma, includ- mens. program are valued at up to $50,000. ing Parke-Davis and Pfizer Inc., and With Chop2, he said, the gene will The First Step Ventures fund, a $5 was involved in bringing several either work or it won’t. And it will million fund based in Detroit’s Tech- successful drugs to market, includ- work quickly or not at all. The company’s business plan calls for the company to reach $500 million in revenue five years after sales begin, though one exit strategy that could appeal to in- vestors is to sell the company to a large pharmaceutical company dur- ing FDA trials, provided it shows good results. “I’m a big believer in Sean Ainsworth. He’s a hardworking guy who has a ton of integrity,” said Cross. Ainsworth previously helped launch two University of Michi- gan biotech spinoffs: Compendia Bio- Science Inc. and GeneVivo LLC. Ann Arbor-based Compendia is still op- erating and profitable; GeneVivo, which hoped to grow designer re- search mice, went out of business af- ter the technology failed to live up to expectations. “I gave him credit when he shut GeneVivo down. It’s not an easy thing to do. When he did, I told him to keep in touch,” said Cross. “The science here is reasonable and ra- tional, but I like it as much for the jockey as for the horse.” Tom Henderson: (313) 446-0337, [email protected] 20101129-NEWS--0020-NAT-CCI-CD_-- 11/24/2010 3:25 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS November 29, 2010 Moroun: Bridge owner shapes battle over border crossing ■ From Page 1 in Detroit and is trying to twin his Being the poor kid among the built from Ontario’s Highway 401 Arab-American and that Gov. Jen- its members are less likely to sup- span, a project opposed by Canada. children of the city’s elite at Univer- to the DRIC site will siphon the lu- nifer Granholm is something of a port a taxpayer-funded bridge in- sity of Detroit Jesuit High School crative commercial traffic away proxy for Canadian interests, ob- stead of a privately financed span. made an imprint on him, Moroun from his bridge. servers say. “The Republican Party is the Uncivil war of words has said. They had everything, he “(The Ambassador Bridge) prob- “Some of the issues they’ve party of the private sector and Outside observers say Moroun’s had little, and he took the bus to ably will go bankrupt and some brought up haven’t served them in doesn’t like to see government get- blunt style of doing business fuels school while his classmates were federal judge will bang their gav- the debate,” said John Taylor, a ting involved any more than it has a chorus of public and private crit- chauffeured. el,” he said, accusing the Canadi- longtime observer and analyst of to,” Ballenger said. ics on both sides of the border, and Moroun didn’t get into medical ans of a regulatory taking of his the bridge situation and an associ- Less publicized are the pro- along with rhetoric by DRIC’s school after graduation from Notre bridge. ate professor of supply chain man- DRIC donations and lobbying in backers makes rational discussion Dame in 1949, so he went back to The bridge is believed to collect agement and director of supply Lansing. of the projects difficult. the family business. about $60 million annually from chain programs at Wayne State Uni- For example, the leadership of “Moroun certainly has a reputa- That’s where he created his em- tolls. The bridge company doesn’t versity. the Greater Detroit Building and Con- tion as a capitalist-ogre — as some- pire. His father took over a small comment on its finances. “There do seem to be very hard struction Trades Council strongly ad- one who will use his considerable trucking company called Central “Frankly, I don’t know what’s positions by the advocates. We need vocates for DRIC, and some of its financial resources to buy political Cartage and the son grew it into a going to happen,” he said. to let the facts and accurate forecasts member unions gave heavily in support, and who stretches the vast constellation “They’re taking dictate how this issue is resolved.” the past to outgoing U.S. Rep. Car- law,” said Peter Samuel, editor of today that in- away the roads.” The litany of litigation over var- olyn Cheeks Kilpatrick, the long- Maryland-based toll industry cludes numerous We need to let Moroun cites ious bridge-related topics also fu- time Detroit Democrat who has newsletter and website Toll Road haulers and an ar- “ U.S.-Canadian els criticism — including from the taken Moroun donations and ques- News and a critic of both Moroun’s ray of allied logis- the facts and treaties and agree- courts. tioned the need for DRIC. methods and of DRIC. “He’s an ex- tics businesses. ments that he says For example, on Nov. 8 U.S. Dis- Federal campaign records show traordinarily polarizing figure, His companies em- accurate forecasts give him a perpet- trict Court Judge Patrick Duggan donations to her in recent cycles probably the most polarizing fig- ploy about 7,000 ual monopoly on rejected an appeal by Moroun’s De- from the Laborers Union ($51,500), ure in tolling in America. people today. dictate how this bridge traffic in troit International Bridge Co. related Teamsters Union ($46,500) and Oper- “It would be much easier to Forbes esti- the Detroit-Wind- to an order by another judge to re- ating Engineers Union ($38,000) — all solve these problems if the bridge mates Moroun is issue is resolved. sor corridor. move new plaza structures built in part of the council. wasn’t owned by Moroun,” Samuel worth $1.6 billion, ” Others, includ- violation of a project agreement said. “He’s such a divisive, dis- a calculation John Taylor, ing the Canadian with the Michigan Department of Border war liked personality, it is going to be based largely on Wayne State University and Michigan gov- Transportation over the $230 million very difficult to get political sup- his known and ernments, dis- Ambassador Gateway project. In 1990, Moroun won a 10-year port for any deal with him.” public holdings. But Moroun owns agree. So do industry watchers. “The court has been flooded court battle with the Canadian fed- Samuel, who said Moroun’s much more than that, so a true es- “I’ve read the documents, and with motions filed by DIBC and eral government, which he said was claim of a legal monopoly on timate of his worth is unknown — Moroun has no basis for the claim parties scheming with DIBC to trying to gain control of the bridge bridge traffic is baseless, is among other than it’s likely much more he has a right to a perpetual mo- keep the action in federal court,” for itself. The Canadians settled and non-aligned observers who have than $1.6 billion. nopoly,” Samuel said. “He can’t Duggan wrote. “Considering this there was about a decade of peace, warned that the traffic estimates But while trucks made his for- sustain any claim of that kind in court’s more than 33 years as a ju- until the movement to build a new used to justify the need for the tune, it’s the 81-year-old Ambas- the courts. But the use of taxpayer dicial officer, DIBC may be enti- crossing began to build in 1999. DRIC bridge and to create toll rev- sador Bridge that Moroun sees as subsidies to put him out of busi- tled to its recognition as the party A second Ambassador Bridge enue estimates for it are deeply his crown jewel and the symbol of ness would be a travesty. That who has devised the most creative span originally was an option, but flawed and could leave taxpayers his legacy. seems to be the aim of some of his schemes and maneuvers to delay later was eliminated. Canada, on the hook for capital and opera- The span was built with private opponents, including some at compliance with a court order.” which didn’t build a new inter- tional costs — concerns used by money raised by New York banker MDOT.” change with the bridge like Michi- state lawmakers in recent months Joseph Bower. It opened in No- Gregg Ward owns the private De- Donation machinations gan did with the $230 million Gate- to stave off a vote on legislation to vember 1929 — when Moroun was troit-Windsor Truck Ferry, which dai- way project, doesn’t want heavy move forward on DRIC despite its 2 years old. ly transports goods (flammable, Moroun’s political donations at trucks on Windsor’s streets. support from the auto industry, Ironically, the Detroit mayor at corrosive, radioactive, explosive the state and federal level, running Instead, Canada wants a new business community and local the time, Republican John Smith, materials and oversize/over- into the hundreds of thousands of span between Windsor’s Brighton politicians. opposed private ownership of the weight trucks) restricted from the dollars, are a major source of criti- Beach area and Detroit’s industri- bridge. A local referendum on the other Detroit River crossings. cism and have fueled accusations al Delray neighborhood that will matter turned out 8-1 in favor of He said Moroun pursues his that GOP lawmakers oppose DRIC link Highway 401 and I-75 to boost Modest roots Bower’s privately owned project, own goals rather than the better- because of Moroun’s cash. trade and improve traffic. Moroun’s origins are humble, however. ment of the region, which all Critics point to the decision by Canada doesn’t want a new Am- and it’s been said they fuel his comes back to his style of doing outgoing state Senate Majority bassador Bridge span, even though irascibility in business: He was business. Leader Mike Bishop, R-Rochester, Moroun is funding it himself and born in June 1927 to parents of Competition or monopoly? “Moroun is not known for a earlier this month to punt the has built new approaches on either Lebanese descent and grew up It’s a doomsday scenario for the light touch,” Ward said. “His over- DRIC enabling legislation to 2011 side of the river. working for his father, Tufick, at Ambassador Bridge if the DRIC bearing and litigious ways reveal a as evidence of Moroun’s influence. The impasse degenerated into the family’s gas station on De- span is built, Moroun said. That’s desire for dominating power and Outside observers think such lawsuits. In Moroun’s mind, a de- troit’s east side. He worked menial because he believes the $1.5 billion control. In the end, arrogance will accusations are largely overstated cline in traffic since 1999 sapped tasks such as sweeping out buses. Windsor-Essex Parkway being be his ultimate downfall. Business or simply partisan rhetoric. any need for a second bridge, and speaks with a united voice that ad- “Sometimes I think local re- the continued effort to build DRIC ditional, competitive border infra- porters in Detroit exaggerate the is evidence to him that Canada structure is needed; Moroun, influence he buys,” Samuel said. wants him out of business. though, believes, like John D. “He seems to have made at least as And to hear Moroun talk about Rockefeller, that ‘competition is a many enemies as he has friends. it, some may wish him harm. Mission Outstanding! sin.’ ” Politicians he has supposedly “They’ve smeared me so much,” Others say he’s simply a good ‘bought’ are only bought up to a said Moroun. “I’ve even been Would you describe your businessman. point. The picture of them as total stopped (by his own employees) in law firm as outstanding? Oakland County Executive L. lackeys of Moroun is overdrawn. Windsor and told, ‘You shouldn’t Brooks Patterson, a Republican “Many of them, on my reading, be driving alone.’ I’m such a crimi- It could happen. who has come out in support of are sincerely and properly con- nal (to Canada).” DRIC, said Moroun is “winning cerned about the DRIC developing In the end, he’s confident DRIC The attorneys at McDonald Hopkins hands down” in the bridge compe- into a boondoggle for engineers, won’t be built. are on a mission to provide outstanding tition. He also voices admiration bankers and construction compa- “I don’t think they can build the legal services to every client. for him. nies, leaving the state and taxpay- bridge. Somewhere along the line, “Matty is a fierce competitor. He ers with a big loss maker and crip- the light will go on,” he said. ® Attorneys on a Mission wouldn’t be where he is in the pling debt to support.” Rumors floated this year that Your mission is our mission. business world unless he had that Bill Ballenger, longtime editor Canada had approached Moroun We never lose sight of it. competitive spirit. He uses every of Inside Michigan Politics, also be- on selling the Ambassador Bridge tool at his disposal,” Patterson lieves as bogus the narrative that — scuttlebutt quickly denied said. “I don’t have a problem with lawmakers are on the take for Mo- across the border but true accord- Matty. I like him personally. I re- roun. ing to Moroun. spect his tough business approach. “There are intellectual argu- Would he sell? A business advisory and advocacy law firm® We happen to disagree on this one. ments that can be made against “I have a price in mind, but I’m not going to join the crowd that having the DRIC built,” he said. would like to keep it to myself,” he 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 vilifies him. He’s doing what I “People can have opinions inde- said, then wondered aloud if legal- Carl J. Grassi Stephen M. Gross would do if I were him.” pendent of finance. There’s an at- ly he even could sell to Canada. President Detroit Managing Member Moroun and his lieutenants also tempt by supporters of DRIC to de- “I don’t know if I want to,” he Chicago • Cleveland • Columbus • Detroit • West Palm Beach have hurt themselves by accusa- monize anyone who doesn’t then adds. www.mcdonaldhopkins.com tions that Canada is discriminat- support the project.” Bill Shea: (313) 446-1626, ing against him because he’s an The GOP’s ideology also means [email protected] 20101129-NEWS--0021-NAT-CCI-CD_-- 11/24/2010 3:32 PM Page 1

November 29, 2010 CRAIN’S DETROIT BUSINESS Page 21 Earnings: Public companies see 6th quarterly rise www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or “Slow, consistent growth year sults of cost-cutting. We’re seeing ings clearly reflect the nature of [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- over year is the best thing that growth in the top line. We’re see- Michigan’s recovery — steady but 0460 or [email protected] could possibly happen. Let’s hope It’s amazing to see ing increases in capital expendi- not broad-based enough for cele- MANAGING EDITOR Andy Chapelle, (313) 446- things don’t get too superheat- “ tures, and we’re seeing increases bration. 0402 or [email protected] ed,” said Cliff Roesler, manag- the rebound in R&D spending.” About a third of the companies, DEPUTY MANAGING EDITOR Jennette Smith, (313) 446-1622 or [email protected] ing partner of Birmingham- “The third quarter was quite fa- 24, lost money in the quarter, COPY DESK CHIEF Gary Piatek, (313) 446-0357 based Angle Advisors-Investment of vorable. It continued to show a though some of them lost less than or [email protected] Banking LLC. strong rebound in industrials and a year earlier. ASSISTANT NEWS EDITOR Jeff Johnston, (313) Roesler said one can look at companies consumer cyclicals,” said David “The bigger companies are do- 446-1608 or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or auto sector earnings two ways Sowerby, chief market strategist ing quite a lot better, and profits [email protected] — that things had bottomed out for whom for the Bloomfield Hills office of are up a lot,” Johnson said. WEB DEVELOPER Steve Williams, (313) 446- so far down that gains were in- Loomis, Sayles & Co. L.P. He tracks “There’s a significant minority 6059, [email protected] survival was WEB EDITOR Gary Anglebrandt, (313) 446-1621, evitable, or that given how bad 75 public companies around the that are still not profitable, and [email protected] things got, “it’s amazing to see absolutely state. that speaks to a subdued recovery EDITORIAL SUPPORT Robertta Reiff (313) 446- the rebound of companies for He said that despite “a lagging and that some companies continue 0419, YahNica Crawford, (313) 446-0329 whom survival was absolutely not performance in the financials, I’ll to deal with suppressed demand. NEWSROOM (313) 446-0329, FAX (313) 446- not guaranteed. 1687 TIP LINE (313) 446-6766 guaranteed. I would fall into the grade the quarter an A-minus. It “It’s still significantly brighter ” REPORTERS latter camp,” he said. would be better if all cylinders than a year ago. The recovery is in Cliff Roesler, Angle Daniel Duggan: Covers retail, real estate and “There is ample evidence show- were firing.” place and there’s been a mild accel- hospitality. (313) 446-0414 or Advisors-Investment Banking LLC [email protected] ing the auto suppliers very quick- Bank stocks continued to be a eration in growth the second half Jay Greene: Covers health care, insurance and the ly, very dramatically cut their pairment and construction. Take drag. that will help corporations going environment. (313) 446-0325 or [email protected]. costs, changed their operating out that loss, and the remaining Ten reporting bank holding forward,” he said. Chad Halcom: Covers law, non-automotive models very rapidly and sur- companies had net income almost companies combined for a net loss Utility stocks were strong. CMS manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or vived,” Roesler said. triple that of a year ago. of $107.9 million, an improvement Energy Corp., DTE Energy Co. and ITC [email protected]. And the news for PulteGroup Tom Henderson: Covers banking, finance, “What was lacking for the over the $348.3 million in losses Holdings Corp. combined for net in- technology and biotechnology. (313) 446-0337 or longest time was a supplier willing wasn’t as bad as it seemed, either. they combined for last year. come of $335.4 million, up from [email protected]. Nancy Kaffer: Covers small business, the city of to walk away from loss-making The company’s operating perfor- Losers were led by Citizens Republic $255.8 million. CMS led the way, go- Detroit, Wayne County government. (313) 446- production,” he said. mance beat Wall Street estimates, Bancorp Inc., which went from a net ing from $67 million to $134 million. 0412 or [email protected]. Bill Shea: Covers media, advertising and The area’s 60 public companies coming in at a loss of 3 cents a loss of $62.2 million to a loss of Five of seven nonautomotive marketing, the business of sports, and combined for net income of share compared with Wall Street $67.9 million. manufacturing companies had im- transportation. (313) 446-1626 or [email protected]. $1.9 billion, compared with com- expectations of 5 cents. Three banks modestly squeaked proved quarters, as did four out of Nathan Skid: Multimedia reporter. Also covers the “It was a good quarter,” said food industry and entertainment. (313) 446-1654, bined net income of $1.1 billion for into the black — Dearborn Bancorp five real estate investment trusts, [email protected]. the same quarter last year. Sam Valenti III, chairman and Inc., Birmingham Bloomfield Banc- three of four nonbank financials Sherri Welch: Covers nonprofits and services. But the news was better than it CEO of Bloomfield Hills-based shares Inc., and United Bancorp Inc. and two of four life science compa- (313) 446-1694 or [email protected] Dustin Walsh: Covers auto suppliers, steel, higher seemed. Valenti Capital LLC. A year ago, all lost money. nies. education and Livingston and Washtenaw PulteGroup Inc. took $995 million “We’re seeing profits now for Dana Johnson, chief economist Tom Henderson: (313) 446-0337, counties. (313) 446-6042 or [email protected] LANSING BUREAU in charges related to goodwill im- the first time that aren’t the re- for Comerica Bank, said local earn- [email protected] Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] Delphi: Execs bloody knuckles on GM in 1st round SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Christine Galasso, Matthew ■ From Page 3 J. Langan, Lori Tournay Liggett, Tamara Rokowski, Cheryl Rothe, Dale Smolinski siders, attorneys and accountants chases from Delphi at the time of guise of warranty claims in an ef- pension matter. At the time, wit- CLASSIFIED SALES (313)-446-0351 has cast GM as a bare-knuckled ne- the spinoff, instead steering a larg- fort to pad its own profits. nesses have said, Delphi execu- MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- gotiator that set up Delphi for fail- er-than-forecast amount of business tives were concerned GM eventu- 0416 or [email protected] ure upon its 1999 spinoff from the to other suppliers, Robinson said. ally would demand to be EVENTS MANAGER Nicole LaPointe automaker. “Delphi was literally at the mer- ‘Extortion’ tactics reimbursed roughly $200 million MARKETING ARTIST Sylvia Kolaski The U.S. Securities and Exchange cy of GM,” Battenberg’s attorney, “This always was just a number for pension and health care costs SALES SUPPORT Suzanne Janik, YahNica Crawford CIRCULATION Candice Yopp, Manager. Commission has rested its case; the William Jeffress, told the court. GM was trying to achieve,” Robin- for thousands of workers who MARKETING COORDINATOR Kim Winkler defense case likely will take sever- During the summer of 2000, son testified. “At a certain point, it joined Delphi upon the spinoff but PRODUCTION MANAGER Wendy Kobylarz al weeks. three meetings between Batten- didn’t have anything to do with later flowed back to GM. PRODUCTION SUPERVISOR Larry Williams A 10-member berg and top GM executives led to warranty.” “Neither J.T. Battenberg nor CUSTOMER SERVICE jury eventually a deal in late September: Delphi With the jury out of the court- anyone else at Delphi believed that MAIN NUMBER: Call (877) 824-9374 or write [email protected] will decide agreed to pay $237 million to settle room, Deborah Kovsky-Apap, an Delphi owed GM $237 million for SUBSCRIPTIONS $59 one year, $98 two years. whether that warranty claims and “certain open attorney for Battenberg’s co-defen- those warranty claims,” attorney Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state pressured Bat- issues,” including spinoff-related dant, former Delphi Chief Ac- Jeffress told jurors. rate for surface mail. Call (313) 446-0450 or tenberg to cook pension and benefit costs that GM counting Officer Paul Free, even Nicholas Difazio, Delphi’s lead (877) 824-9374. SINGLE COPIES: (877) 824-9374. the books in or- was stuck with, but which should used the word “extortion” to de- outside auditor in 2000, said GM REPRINTS: (800) 290-5460, ext. 125; (717) 505- der to hit profit have been covered by Delphi. scribe GM’s tactics. was notorious a decade ago for de- 9701, ext. 125; or ashley.zander@theygsgroup .com. targets, as the How that $237 million payment The SEC says Battenberg should manding big payments from sup- TO FIND A DATE A STORY WAS PUBLISHED: SEC alleges. was accounted for on Delphi’s have known he’d be on the hook pliers and negotiating down. (313) 446-0367 or e-mail [email protected]. Battenberg Whatever the books lies at the heart of the gov- for pre-spinoff warranty claims: “GM asserted very large, puffed- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY jury concludes, the testimony so ernment’s case against Batten- the IPO filing that he signed says up claims ... and ultimately settled CRAIN COMMUNICATIONS INC. far offers a rare window into the berg. so. for very small amounts,” he told CHAIRMAN Keith E. Crain PRESIDENT Rance Crain intense friction between what was The SEC claims it all should SEC attorneys have said pres- jurors. SECRETARY Merrilee Crain then the world’s largest automak- have been recorded as warranty sure to hit earnings forecasts, TREASURER Mary Kay Crain er and supplier. It also spotlights expenses, and that the pension is- whether created by GM or not, Executive Vice President/Operations Pearce denies hardball William A. Morrow problems besetting Delphi as it sue was inserted at the last minute prodded Battenberg to cheat. Group Vice President/Technology, Manufacturing, Circulation sought firm footing as a new com- to blunt the damage to Delphi’s U.S. District Judge Avern Cohn Much of the criticism of GM was Robert C. Adams pany before stumbling into bank- bottom line. said whatever screws GM might rebutted by the only GM executive Vice President/Production & Manufacturing ruptcy in 2005. Delphi booked $202 million of have put to Delphi, either in struc- to testify so far, former Vice Chair- Dave Kamis Chief Information Officer the payment as a charge against turing the spinoff or afterwards, man Harry Pearce. Pearce, 68, now Paul Dalpiaz the value of its pension, thus keep- are irrelevant to the charges is chairman of MDU Resources Corporate Circulation/Audience Development ‘Life-or-death’ warranty dispute Director ing the payment out of its quarter- against Battenberg. Group Inc., an energy and infra- Kathy Henry GM’s warranty demand was the ly profit-and-loss statement and ar- “I don’t think how GM set up structure company in Bismarck, G.D. Crain Jr. Founder (1885-1973) biggest tension point, eliciting pal- tificially inflating its profits, the Delphi and whether it did it on the N.D. Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: pable ire from former Delphi offi- SEC says. cheap ... so that Delphi was born in Pearce said the $237 million was 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 cials even a decade later. Robinson Battenberg is charged with a malnourished state, is arguably a warranty payment resulting Cable address: TWX 248-221-5122 AUTNEW DET referred to it as a “life-or-death is- fraud for his role in the GM settle- relevant,” Cohn, 86, said last from a careful engineering review CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 sue” for Delphi. ment and for signing allegedly month with jurors out of the court- by both companies and “had noth- is published weekly, except for a special issue the third week of January, a special issue the fourth GM sent Delphi out the door fraudulent SEC disclosures. room. ing to do with GM earnings.” He week of August, and no issue the third week of December by Crain Communications Inc. at 1155 with a tidy $53 million reserve to GM, meanwhile, booked the en- “I’m not aware that, if you pay also denied GM ever yanked busi- Gratiot Ave., Detroit MI 48207-2732. Periodicals pay future warranty claims — tire $237 million as income. That blackmail, you can disguise it as ness from Delphi because of the postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to then a year later demanded up to allowed GM to meet its earnings another kind of payment.” warranty fight. CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- $800 million for faulty parts Delphi target — barely — that quarter, de- Defense attorneys said because “I wanted Delphi to be in good fi- 9732. GST # 136760444. Printed in U.S.A. supplied before it split from GM, fense attorneys said. Several wit- the warranty claim was flagrantly nancial position,” he said. “They Entire contents copyright 2010 by Crain Communications Inc. All rights reserved. witnesses have said. nesses, including Robinson and outsized, it only made sense that were GM’s largest supplier. We Reproduction or use of editorial content in any Meanwhile, GM was failing to lower-level managers, accused GM GM would open the final settle- cared about Delphi.” manner without permission is strictly prohibited. live up to its own targets for pur- of strong-arming Delphi under the ment to other issues, including the From Automotive News 20101129-NEWS--0022-NAT-CCI-CD_-- 11/24/2010 4:18 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS November 29, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 20-26

graduates of its Emerging 200 Initiative at Detroit’s Snyder backs TechTown incubator. CEOs VOLUNTEERS FIX UP FACADES Lawyer: ‘No and presidents of the De- troit-based businesses cele- Schostak to brated the completion of a six-month course that end- lead GOP way’ Widlak ed Nov. 1. Graduates included Mike Chaudhary, president of DMC ov.-elect Rick Snyder Construction; Vickie Lewis, said he is backing a Tender Care Daycare before. After. CEO and president of VMX G bid by Oakland County devloper Bobby shot himself International; Jasmine Holt, Schostak, the Michigan Repub- CEO of Abbeville Treats LLC; lican Party’s finance director, ttorney Todd Flood, Jason Dixon, CEO of Dixon Moosejaw brothers happy to become the next GOP who was hired by Medical Supply; Diana Geier, chairman, replacing Ron A the family of David with online fundraising site CFO of Eastern Michigan Dis- Weiser early next year, The Widlak to represent the fam- tributors Co.; Ronald Jones II, Jeff Wolfe, who founded Associated Press reported. ily in probate court and to the popular Madison COO of Empire Equipment & help solve the mystery of Snyder also said he want- Heights-based outerwear re- Supply Co.; Balaji Perfect Imaging before. After. the ed to use social media to tailer Moosejaw Mountaineer- Satyavarapu, CEO of iGrid banker’s reach state residents, and ing and Backcountry Travel Technologies Inc.; Ron McCall, The Eight Mile Boulevard Association, with the help of death, says Bloomberg News reported Inc. with his brother Robert managing partner of McCall about 80 employees of Mercedes-Benz Financial he is sure that he wanted to “phase Services USA’s information-technology department, Wolfe, said the new Web- Educational Services; Edna now that down” the state program spruced up two local business facades in early October. based company they are Bell, CEO of SERCH Services the case is that offers tax credits for The Mercedes-Benz Financial employees landscaped, working on now is showing Inc.; Lane Coleman, CEO of one of mur- movie production. painted and put up a fence at the Tender Care Daycare, promising results. Strike Group LLC; and Tarik der, not of at 12451 E. Eight Mile Road, Warren. The Wolfe brothers Lester, COO of Transcend suicide. The other business to receive a face lift was USA Perfect Technology. Flood Flood, a teamed with Hollywood ac- ON THE MOVE Imaging, at 21270 W. Eight Mile Road in Southfield, The initiative was an ef- former prosecutor now with tor Ed Norton and movie pro- The Troy-based Original which included landscaping, a paint job and new awning. the Royal Oak firm of Flood, ducer Shauna Robertson in fort by local organizations Equipment Suppliers Associa- Founded in April 1993, the Eight Mile Boulevard Lanctot, Connor & Stablein May to launch Crowdrise, an that include the Detroit Re- tion has Association is a nonprofit formed by 13 communities and three counties to revitalize and promote the Eight PLLC, told Crain’s that he, online fundraising commu- gional Chamber, the Detroit elected Bill Mile Road corridor between I-94 and I-275. his private investigators nity that uses a social net- Economic Growth Corp., the Kozyra, and a forensic psychiatrist working approach to attract Michigan Economic Develop- chairman, business is at before under- last week walked Widlak’s members who can create ment Corp., the Michigan Mi- CEO and Oak Park-based MJR taking export operations. route, retracing the path personal fundraising pages nority Business Development president of Digital Cinemas announced Ann Arbor Spark, Detroit the former CEO of Communi- and enlist friends to cham- Council and TechTown. TI Automo- it plans to build a new Economic Growth Develop- ty Central Bank took before pion and donate to causes SBA’s Emerging 200 pro- tive, as movie theater complex in ment Corp., Michigan Eco- he disappeared — from the they support. gram was started three chairman of Westland. The MJR West- nomic Development Corp. and bank’s headquarters in The site was the subject years ago in select U.S. Kozyra its board of land Grand Digital Cinema 16 Macomb, Oakland and downtown Mt. Clemens to of a New York Times article cities and two years ago in directors. will break ground at the Wayne counties have the spot on Lake St. Clair in that pointed to the near- Detroit. Its goal is to help Shelly Kemp has been end of March and is sched- signed a letter of intent to Harrison Township where record amount the New inner-city businesses grow appointed executive direc- uled to open in late October collaborate to attract and Widlak’s body was found York City Marathon and its and generate jobs. tor of the Greater Royal Oak or November 2011, creating more than 60 jobs. grow local business. floating Oct. 17. runners were raising for Chamber of Commerce after Troy-based First Michi- A poll of construction “No way he walked four charity, in part because of serving three months as in- gan Bank on Nov. 19 pur- firms by the Arlington, Va.- miles to that spot, put a gun their use of Crowdrise. BITS & PIECES terim executive director. chased the assets and loans based Associated Builders to the back of his head and Like Moosejaw, Three hospitals in of the Burlington, Wis.- and Contractors shows shot himself. Not to men- Crowdrise.com is relying Southeast Michigan are based First Banking Center, Michigan had a 5.37-month tion this was a guy with a on humor and quirkiness, COMPANY NEWS among five statewide that which was shut down after backlog of construction phobia of water,” said along with good-natured have been selected for Thom- Van Buren Township- the close of business that projects in September, Flood. competition, to connect son Reuters’ 50 Top Cardio- based Visteon Corp. is mak- day by the Federal Deposit In- down from the 6.33-month Flood said the Macomb with its members. vascular Hospitals for 2010 ing a “multimillion dollar” surance Corp. First Michigan backlog in August. Results County Sheriff’s Depart- because of their lower rates investment in its interiors assumed about $470 million mirror the national trend ment told him forensic re- of mortality and complica- and electronics production in deposits in 17 branches of less construction on the sults of the family handgun CEOs graduate from SBA tions and higher quality in Brazil, including injec- and about $510 million in drawing board. The de- found near Widlak’s body They weren’t sporting than comparable hospitals. tion molding operations, loans, subject to a loss-share crease is attributable large- could come back from the caps and gowns, but it was They are Providence Hospi- Crain’s sister publication agreement for troubled ly to a slowdown of projects crime lab this week. He said still graduation day earlier tal and Medical Center, Plastics News reported. loans with the FDIC. funded by the federal gov- he expects tests will show this month for 11 Detroit Southfield; St. Joseph Mercy Most of the funds will go to- The St. Louis-based ernment’s stimulus money. it’s the gun that killed Wid- small-business owners. Oakland, Pontiac; and St. ward expanding and mod- Panera Bread Foundation has 2-1-1 On the Go, which lak but won’t show who The U.S. Small Business Ad- John Macomb-Oakland Hospi- ernizing Visteon’s plant in converted a former Panera helps downtown Detroit’s pulled the trigger. ministration recognized the tal, Warren. Guarulhos, which makes Bread location in Dearborn homeless residents, will be instrument panels, con- into the charitable Panera able to continue to cruise soles and other interiors. Cares Café. The business city streets because of the Cerberus Capital Man- has no cash registers; Pan- creation of the $4 million agement LP is seeking buy- era encourages those who Roger Penske Detroit Fund. ers for auto lender Chrysler are hungry to choose some- The program is operated Financial, which the private- thing and, if able, to pay jointly by the Downtown De- BEST FROM THE BLOGS equity firm acquired as their fair share through do- troit Partnership and the Unit- part of its takeover of nation boxes. The café will ed Way of Southeast Michigan. READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Chrysler LLC in 2007, also offer the option of ex- n Macomb County Cir- Bloomberg News reported. changing a meal for an cuit Judge Diane Druzinski Back story of sale interesting Haiti on the mind of Salsa CEO T-Mobile USA Inc. has hour of volunteered time. has sentenced 42-year-old become the latest company A 13-building portfolio Ferndale-based Garden Scott Pionk of Clinton Town- belonging to First Fresh Salsa is to roll out a faster, fourth- OTHER NEWS ship, an ex-securities bro- Industrial Realty Trust undergoing the biggest generation wireless service ker who ran a $2 million in- was put up for sale growth spurt in the in metro Detroit. The U.S. Department of vestment scheme, to a four- recently, and while a company’s history. But Dearborn-based Inter- Commerce and the U.S. Small to 10-year prison sentence chunk of real estate that CEO Jack Aronson’s national Automotive Compo- Business Administration have after pleading no contest to large being sold at an concerned about more nents Group, the auto parts launched an online assess- three charges, AP reported. $8 million asking price is than salsa. He’s supplier owned by billion- ment to help small busi- State officials say interesting, the back story donated time and aire Wilbur Ross, has ac- nesses considering a move falling gas tax revenue will of the broker selling it is dollars to help the quired AMPRO Molding LLC, even more interesting. people of Haiti. into exporting. The six-step force the state into a project- a maker of components for assessment, at ed road repair budget of $626 Reporter Dan Duggan’s blog on commercial real estate Reporter Nathan Skid’s Detroit-area restaurant blog vehicle interiors, www.export.gov/begin, leads million for 2012, compared can be found at www.crainsdetroit.com/duggan can be found at www.crainsdetroit.com/skid Bloomberg News reported. to a score indicating the to $1.4 billion spent in 2010, Terms weren’t disclosed. level of readiness the small The Detroit News reported. DBpageAD.qxp 11/19/2010 2:37 PM Page 1

NOVEMBER 15, 2010 National Philanthropy Day CongratulationsVolunteers & Sponsors

2010 AWARDEES

Patricia K. Ghesquiere Robert B. Rosowski Michael Fezzey Susan E. Burns Emily Lisner George W. Romney Award Edmund T. Ahee Jewel Award Neal Shine Award Outstanding Fundraising Outstanding Youth for Lifetime Achievement for Outstanding Volunteer for Media Commitment Executive Award in Philanthropy Award in Volunteerism Fundraiser to Philanthropy

Leslie Devereaux Max M. Fisher Award for Outstanding Philanthropist Outstanding Corporation Award Outstanding Foundation Award

DISTINGUISHED VOLUNTEERS

The Adray Family – Henry Ford Community College Foundation Leila Matta – College for Creative Studies Angela Aufdemberge – Vista Maria Grosse Pointe Memorial Church – Presbyterian Villages of Michigan Foundation Michael & Debbie Berger – Henry Ford Health System Judy Miller – Japhet School Doris Blackson – Henry Ford Wyandotte Hospita Dennis M. Mitzel – Planned Giving Roundtable of Southeast Michigan Natalie Brothers – Presbyterian Villages of Michigan Foundation Leslie Murphy – United Way for Southeastern Michigan Zephry Brown – Lawrence Technological University Frank O'Donnell – Common Ground Susan Burkhardt – Henry Ford Health System Ralph Pearlman, MD – St. John Providence Heaoth System Foundations Annette Burns – Presbyterian Villages of Michigan Foundation Vivian R. Pickard – College for Creative Studies Carl & Juli Camden – Henry Ford Health System Michael C. Porter – University of Detroit Jesuit High School & Academy Tom and Carol Campau – St. John Providence Heaoth System Foundations Jo Ellen Rahaim – LEAVE A LEGACY, Southeast Michigan Mary Campbell – Society of St. Vincent de Paul Timothy & Shelley Reisen – Lutheran Social Services of Michigan Harry Cendrowski – Madonna University Ross Richardson – Henry Ford Health System Clara Chambers – Henry Ford Health System Derek Richmond – Lawrence Technological University Kathleen Chisholm McInerney Rose Hill Foundation Elizabeth Rubinstein – Henry Ford Health System Judy Christie – Common Ground Ann Schriber – The Arbor Hospice Foundation Ann Conrad – St. John Providence Health System Foundations William C. Schultz – Lawrence Technological University Diana Day, Lynn & J Ferron, Meg & Brady Ferrib – The Community House Sandra Schwartz – Jewish Federation of Metropolitan Detroit John DeCerchio & Michelle "Mickey Guisewite – Childern's Hospital of Michigan Bruce Silverman, DO – St. John Providence Heaoth System Foundations Barbara Dobb – Walsh College Sophie Sklar – Henry Ford Health System Nancy Jacobson – Jewish Federation of Metropolitan Detroit Alexa Stanard – Freedom House Bernard S. Kent Oakland University - John Dodge House Timothy and Laurie Wadhams – The Arbor Hospice Foundation Michael Kneale – Lutheran Social Services of Michigan Mary Williams – Vista Maria Brian – LaFerriere – Cranbrook Schools Horizons-Upward Bound Scott Wolffi s – The Salvation Army Kimberly Lapinski – Lawrence Technological University William C. Young – University of Detroit Mercy Eugene LoVasco – St. John Providence Heaoth System Foundations Linda Zabik – Woodward Avenue Action Association Peter Lucido – Henry Ford Health System Neal Zalenko – Walsh College

PRESENTING SPONSOR NEAL SINE AWARD FOR COMMITMENT SILVER SPONSORS Crain’s Detroit Business TO PHILANTHROPY SPONSOR Beaumont Hospitals Non-Profit Personnel Network - Lawrence Technological University YOUTH IN PHILANTHROPY Gary Dembs Wayne State University AWARD SPONSOR Children’s Hospital of Michigan PLATINUM SPONSORS BRONZE SPONSORS Foundation DTE Energy Foundation Cranbrook Schools Horizons-Upward Bound Henry Ford Health System Foundation Henry Ford Community College EDMUND T. AHEE JEWEL AWARD Lutheran Social Services FOR OUTSTANDING VOLUNTEER GOLD SPONSORS Presbyterian Villages of Michigan Foundation FUNDRAISER Oakland University Rose Hill Foundation Edmund T. Ahee Oakwood Healthcare Foundation The Salvation Army St. John Health System Foundation Walsh College DBpageAD.qxd 10/29/2010 10:35 AM Page 1

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