Snyder Not Yet on Board with M1

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www.crainsdetroit.com Vol. 28, No. 6 FEBRUARY 6 – 12, 2012 $2 a copy; $59 a year

Page 3 Small suppliers bear costs Snyder not yet on board with M1 of pricing investigation tions, said it’s untrue that Snyder One worry: Operating costs might derail RTA thinks M1 Rail is a distraction that Focus: Business Education potentially BY BILL SHEA the situation told Crain’s on the tion, including the governor, con- could harm the CRAIN’S DETROIT BUSINESS condition of anonymity that Sny- sider the M1 project to be a distrac- regional author- Biz schools, der is concerned that the investor tion that could jeopardize a plan ity effort or that biz skills: Gov. Rick Snyder is skeptical of a group known as M1 Rail cannot for a system of high-speed buses in he wants the private consortium’s ability to fi- build its 3.4-mile line between Hart metro Detroit, something pro- rail project to go Looking for nance, build and operate a street- Plaza and New Center on Wood- posed by Snyder in December, the away. a new kind car system in downtown Detroit as ward Avenue for the $125 million it sources said. However, Rus- budgeted, sources have told has advertised. One source said the administra- tem didn’t say of leader, Crain’s. But his administration is M1’s plan is to finance the sys- tion was so concerned that it pre- the governor is reluctant to make its worries pub- tem with private money from its ferred the M1 project simply go offering his out- Rustem Page 9 lic because the influential group wealthy members and with federal away. right support for has significant political support in tax breaks and eventually turn it Bill Rustem, Snyder’s strategy M1 Rail’s plan. Instead, he said the Washington. over to a regional transit authority. director, and Geralyn Lasher, the Crain’s Lists Two sources with knowledge of Key members of the administra- governor’s director of communica- See Rail, Page 24 Top meeting facilities, Page 16 Struggling with Danto gift seeds loan fund Top-paid professional athletes, Page 17 debt, Asterand Jewish entrepreneurs can tap interest-free money BY GARY ANGLEBRANDT a case-by-case basis.” This Just In CRAIN’S DETROIT BUSINESS Plans were in place to announce the gift — only the legal work remained — when Danto seeks buyers Marvin Danto often shared a story about how died Jan. 24 at the age of 95. Suzuki, dealership head a $200 loan given to his parents in 1932 saved the “We were waiting for the blessing of the fami- to trial in franchise dispute family. ly on how we were going to announce it,” Contor- Tissue bank in default The loan came from Hebrew Free Loan in er said. A meeting had been scheduled with U.S. District Judge Sean Bloomfield Hills, which provides interest-free Joanne, who is the eldest of Marvin’s three chil- Cox has ordered a trial to de- on loan for acquisition loans to members of the Jewish community dren, along with siblings James and Gail Danto. termine whether American when they can’t get loans from other sources. “She could not make the meeting that night be- Suzuki Motor Corp. acted in BY TOM HENDERSON Danto was 16 when his Russian and Polish im- cause her father had passed away.” good faith when it terminated CRAIN’S DETROIT BUSINESS migrant parents needed $200 to pay bills in the The bulk of Hebrew Free Loan’s existing lend- a Brighton dealership’s fran- depths of the Great Depression, said his daugh- ing goes to individuals for personal reasons, such chise for noncompliance with Asterand plc, TechTown’s largest ten- ter Joanne. as those who are suffering hard times and cannot Suzuki standards in Decem- ant and not so long ago the toast of the “My father never for- get loans otherwise. Business loans that are ber 2010. London Stock Exchange, has put itself up We want got about it. I heard made are usually about $25,000, Contorer said. The decision provides an for bids and may announce a buyer in the “ about it my whole life, The new funding, called the Marvin I. Danto opportunity for Consumers next week or two as it tries to get out (the funds) about how they saved Suzuki, a dba of Stephen Mich- from under a $9 million debt that threat- his life, about how they See Danto, Page 25 aels LLC, to prove that the ter- ens the company’s existence. to jump-start saved the family’s life,” mination violated Michigan Leslie Smith, TechTown’s president she said. Marvin Danto and CEO, said that she dealer law. But the judge ambition. In December, Danto, donated threw out its $6.9 million de- hopes the biotech com- ” founder of the Michi- $500,000 to mand for damages, saying it pany continues on as a Joanne Danto, gan Design Center, do- the Hebrew failed to provide evidence to tenant but that she has Hebrew Free Loan nated $500,000 to the Free Loan support its alleged economic a waiting list of compa- 501(c)(3) nonprofit. program in loss. Troy-based dealership nies to take the space Another $500,000 was given from the family’s December. lawyer Peter Albertins said should an eventual foundation, the Marvin and Betty Danto Family His family that ruling will be appealed. buyer move Asterand’s Foundation in Troy, after Danto’s death late last foundation gave another Suzuki spokesman Jeff Hol- operations elsewhere. month. $500,000 after Asterand is Tech- land said the company and its The focus for the Danto funds is on providing he died Jan. 24 lawyers would not comment. Town’s biggest tenant, a springboard for aspiring entrepreneurs with Smith at age 95. Albertins said Consumers occupying 12,930 good ideas. The money will go toward giving in- Suzuki is operating while the square feet or 9 percent of the total space terest-free loans of up to $100,000 to young Jews litigation continues, although of about 144,000 square feet. in Southeast Michigan who want to start a busi- Suzuki doesn’t allow it to buy In its last public statement Jan. 5, ness or build an existing one. new vehicles or parts and is- Asterand (LSE: ATD), a human-tissue “The spirit of the program is to cre- n’t reimbursing it for warran- bank that provides samples to re- ate Jewish businesses and keep ty work. searchers around the world, said it had young people here,” said Joanne As a result, it is doing non- received “strong interest from a number Danto, a member of Hebrew Free warranty service. of parties” and would cut off bids for the Loan’s advisory board. “We want — Crain News Service it to jump-start ambition.” See Asterand, Page 25 The loans will be given out over five years. David Contorer, executive director of Hebrew Free Loan, expects the nonprofit to make five to 10 loans a year. The only rule is that the business be at least 51 percent Jew- ish-owned, Contorer said. “We’re not going to focus on

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Page 2 CRAIN’S DETROIT BUSINESS February 6, 2012

MICHIGAN BRIEFS Gordon Food Service acquisition fabs where participants pontifi- cate, play Angry Birds on their brings new market: New England Feds’ pre-Super Bowl blitz sacks online piracy suspect cellphone or tune out.” Last October, Crain’s Michigan The report credits the growing Business reported that Grand One man may not have been watching the Super counterfeit merchandise. use of “Agile,” a software develop- Rapids-based Gordon Food Service Bowl on Sunday because the federal government The government said Quiroa netted at least ment approach involving daily was building a new headquarters to had charged him with letting thousands of others $13,000 from his websites by selling advertising. The short meetings marked by quick prepare for growth. Here it comes. watch live sporting and pay-per-view events online 16 websites seized provided pirated telecasts of pro- updates. A poll of more than 6,000 Last week, the Patriot Ledger in — albeit in violation of copyright laws. fessional football, basketball, hockey and wrestling, tech employees found that 78 per- Quincy, Mass., reported that Gor- Yonjo Quiroa, 28, of Comstock Park near Grand authorities said. cent held daily stand-up meetings. don had acquired the Perkins Rapids operated nine of 16 websites seized by the Quiroa was held without bail while his immigra- Another study, from 1998, found restaurant supply business. government, which alleged the sites illegally dis- tion status was under review. He faces up to five that standing meetings were about Taunton, Mass.-based Perkins, tributed copyrighted programs. years in prison. a third shorter than sitting meet- family-owned for 97 years, em- His arrest and website seizures coincided with The feds’ crackdown last Thursday occurred ings, and the quality of decision- ploys 635. The companies didn’t Operation Fake Sweep, which targets stores, flea mere hours after New England Patriots quarterback making was about the same. Shorter meetings, better deci- disclose the purchase price. markets and street vendors who sell counterfeit Na- Tom Brady told reporters gathered in Indianapolis sions. Shocking. For Gordon, it means a foothold tional Football League sportswear. for the Super Bowl that he watched last year’s game in New England, where it previ- The government seized at least $4.8 million in on an illegal site. Find business news from ously had little presence, the Patri- around the state at crainsdetroit ot Ledger reported. Gordon spokes- garden are expected to be formally record financial results for the Street Journal featured Atomic Ob- .com/crainsmichiganbusiness. woman Deb Abraham said the announced Feb. 15, Michigan Con- fourth quarter and 2011. ject and other companies that hold Sign up for Crain's Michigan Perkins name will remain for now struction News reported. “Gentex is, for lack of a better meetings while standing up. The Business e-newsletter at crains because it has valuable brand The Richard and Helen DeVos Japan- term, one of your local successes,” idea: Eliminate “long-winded con- detroit.com/emailsignup. awareness in this region. Gordon ese Garden will be on 8 acres near Brian Long of Seidman College of has no immediate plans to cut the the Lena Meijer Children’s Garden. Business at Grand Valley State Univer- Perkins workforce, Abraham said. sity, told The Holland Sentinel. CORRECTIONS Gordon currently employs about Ⅲ A box accompanying a story on Page 28 of the Jan. 30 edition incor- 1,800 full- and part-time workers in Mirror, mirror, time to holler: rectly stated that a “Fela!” musical event planned for Feb. 16 in the Mu- the Grand Rapids area and about Gentex tops a billion dollars A trend in meetings does away sic Hall tent is free. The event is for ticketholders for that night’s per- 12,000 in North America. with the chair man of the bored formance and is not open to the public. If you were uttering complete sen- Ⅲ Three items on the Crain’s lists of 2011 real estate deals had incorrect tences back in 1974, when Zeeland- When Crain’s Michigan Business information about the brokers consulted for the deals. On Page 18, the Meijer Gardens ready to grow based Gentex Corp. was founded, introduced Grand Rapids-based list should have indicated that Signature Associates represented the buyer with $20 million DeVos addition would you have said that someone Atomic Object Inc. last May, Presi- and seller on the sale of 2400 Green Road in Ann Arbor. On Page 21, the could sell $1 billion worth of car mir- dent Carl Erickson said maintain- list incorrectly included the lease of 67,000 square feet to Dickinson Wright The Frederik Meijer Gardens & rors? Last week, Gentex announced ing the corporate culture would be PLLC, a deal that was from 2010. Also, on Page 20, Colliers International was Sculpture Park is the second-leading that it had done just that, topping important as his software company incorrectly included as one of the brokers for leases with C-Mac Trans- tourist attraction in Michigan. $1 billion in annual revenue for the grew. They were looking for people portation LLC (286,784 square feet); CEVA Freight (225,000); Packaging Corp. of And it’s about to get bigger. Plans first time. The auto supplier made who stood out. And up. America (139,314); CEVA Logistics (137,740) and Schenker Inc. (120,000). for a $20 million-plus Japanese the announcement when it reported A story last week in The Wall 20120206-NEWS--0003-NAT-CCI-CD_-- 2/3/2012 5:33 PM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 3 Pricing probe Meetings and Conventions costs trickle to

small suppliers Improving Cobo Center The Detroit Science Center has two or three weeks left to raise enough funding to avoid liquidation of its property and sale of its building. fights to fill schedule, Page 13 Gathering records, reviewing Science center makes company policies drain cash Company index These organizations appear in this week’s Crain’s BY DUSTIN WALSH Detroit Business: American Furukawa ...... 21 CRAIN’S DETROIT BUSINESS Amherst Partners ...... 21 Even the chance of Arboretum Ventures ...... 25 The automotive supply base con- progress on bank debt “ Asterand ...... 1 tinues to be plagued dealing with an BBK ...... 7 by the largest an- Blue Cross Blue Shield of Michigan ...... 3 Deadline nears; donors interested titrust investigation investigation Brogan & Partners Convergence Marketing ...... 5 in U.S. history, creat- Burtek Enterprises ...... 7 Citizens Bank ...... 3 BY SHERRI WELCH may be able to negotiate those ing an unwelcome dis- where the supplier Cobo Center ...... 13 CRAIN’S DETROIT BUSINESS amounts down, sources say. traction for even the Come Play Detroit ...... 25 General Motors Co., Ford Motor smaller suppliers is completely Denso International America ...... 21 The Detroit Science Center is Co. and Penske Automotive Group down the chain. Detroit Children’s Museum ...... 22 getting encouraging signs for se- Inc. have either reportedly While big compa- innocent will be Detroit Chinese Business Association ...... 9 curing about half of the money it stepped up with cash or are re- nies are facing new Detroit Design & Exhibits ...... 22 needs to settle its debt with Citi- ceptive to assisting the science fines and reviewing costly. Detroit Marriott Renaissance Center ...... 13 Detroit Metro Convention & Visitors Bureau ...... 13 code of conduct policies, attorneys ” zens Bank of Flint, largely from center. Detroit Regional Convention Facility Authority . . . . 13 local corporations, sources say. Only Ford Motor Co. Fund has and investigators say lower-tiered James Gillette, IHS Automotive Inc. Detroit Science Center ...... 3 The center is courting private commented. In a statement is- suppliers also should audit their Detroit Science Center Design & Exhibits ...... 22 foundations sued to Crain’s Jan. 23, founda- procedures as the U.S. Department pletely innocent will be costly.” Detroit Tigers ...... 5 for the operat- tion President Jim Vella said the of Justice continues to its crack- It’s been costly for the big compa- Eastern Michigan University ...... 9, 11 Energy Innovation Business Council ...... 4 HEADS UP ing money it automaker and its foundation down on the industry. nies already. For Yazaki Corp., Denso Corp. and Furukawa Electric Co. Ltd., Foley & Lardner ...... 21 Report: Science needs to re- continue “to be a major support- For smaller, Hebrew Free Loan ...... 1 center warned a open the cen- er of the Detroit Science Cen- or lesser-known who have pleaded guilty to bid rig- Henry Ford Hospital ...... 24 year before ter once the ter.” SIDE EFFECT suppliers, the in- ging to the tune of $748 million in Hydra Professionals ...... 22 closing, Page 22 bank debt is Just weeks into his new role as Crime victims vestigations into fines, the investigation resulted in IHS Automotive ...... 3 resolved. chairman of the science center, fund: Price-fixing bid rigging and money loss. And when the dust set- Jewish Federation of Metropolitan Detroit ...... 25 Joyce Julius & Associates ...... 5 Though Citizens has been Tom Stephens, vice chairman fines give boost, price fixing like- tles, total fines for collusion could Page 21 Kresge Foundation ...... 24 working with the science center and chief technology officer for ly raise issues exceed $5 billion if all of the compa- Lawrence Technological University ...... 11 to the best of its ability, accord- General Motors and a 43-year vet- within their or- nies that have been tied to the in- Lear ...... 21 ing to sources, the center has just eran of the carmaker, is now ganizations they’ve never consid- vestigation so far are found guilty, M1 Rail ...... 1 two to three weeks left to raise leading the meetings with poten- ered, said James Gillette, director by local attorney estimates. Madonna University ...... 12 the remaining amount needed to tial funders. of automotive analysis for TRW Automotive Inc. is under in- Marcon Exhibits & Events ...... 22 vestigation for its involvement in Marvin and Betty Danto Family Foundation ...... 1 avoid liquidation of the center’s He’s outlining a plan that re- Northville-based IHS Automotive Inc. Matt Prentice Restaurant Group ...... 4 exhibits and fixtures and sale of turns the science center to its “Many suppliers, especially price-fixing schemes in its safety McGregor Fund ...... 22 its building. core business of operating the smaller and midsized ones, have systems and spent $13 million in Medical Network One ...... 23 The science center owes Citi- museum alone, and not its for- probably never thought of this as legal fees on the matter in its third Michigan Association of Chiropractors ...... 3 zens $4.8 million on a mortgage profit subsidiary, Eekstein’s Work- an issue in the past,” he said. “Even quarter last year. TRW declined to Michigan Design Center ...... 1 the chance of dealing with an inves- Michigan Lodging and Tourism Association ...... 15 tied to its 2001 expansion and $1 Michigan Podiatric Medical Association ...... 23 See Suppliers, Page 21 million on a line of credit. But it See Science center, Page 22 tigation where the supplier is com- Michigan Psychological Association ...... 3 Michigan State University ...... 9, 11 Northpointe Foot and Ankle ...... 23 Oakland Physicians Network Services ...... 23 Rehmann ...... 21 Simons Michelson Zieve ...... 5 South Main ...... 7 Blues open group incentive program to psychologists Special D Events ...... 14 Speyside Partners ...... 7 Transportation Riders United ...... 24 BY JAY GREENE costs. “Blue Cross is aware that there who are in the group incentive Travel Michigan ...... 15 CRAIN’S DETROIT BUSINESS So far, some 40 physician orga- are barriers to us joining a physi- program. TRW Automotive ...... 3 nizations with more than 15,000 cian organization. We are not high While chiropractors are eligible University of Detroit Mercy ...... 11 Psychologists will become the physicians are participating in the on their agenda to participate in the incentive pro- University of Michigan ...... 11 newest eligible members in July to program and are receiving bonus (physician orga- gram, Kristine Dowell, executive University of Michigan Ross School of Business . . . . 9 University of Michigan-Dearborn ...... 9 join a financial incentive quality incentive payments. nizations),” Post director of the Michigan Association Wayne State University ...... 9, 11, 24 improvement program sponsored But one of the requirements for said. of Chiropractors in Lansing, said Yazaki North America ...... 21 by Blue Cross Blue Shield of Michi- participation is joining a physi- Even if psy- she is unaware of any chiropractor gan, following podiatrists and chi- cian organization with a mini- chologists were who has been accepted into a ropractors who became eligible for mum of 75 physicians that in- invited to join a physician organization. Department index participation last year. cludes at least 50 primary care physician orga- “My understanding of the physi- Over the past seven years, Blue physicians. nization, Post cian organizations is that they BANKRUPTCIES ...... 24 Cross has been developing its “We don’t understand how psy- said, there are have very clear cut rules and re- BUSINESS DIARY ...... 18 physician group incentive pro- chologists can successfully partici- no assurances quirements, and chiropractors are Post CALENDAR ...... 20 gram, or PGIP, to reward physi- pate,” said Louis Post, a psycholo- that psycholo- not accepted,” Dowell said. JOB FRONT ...... 19 cians and other members of the gist in Lansing and chairman of gists, who are not physicians, “I personally have talked with CLASSIFIED ADS ...... 21 medical team who improve quality the insurance committee with the would receive financial bonus pay- high-level Blue Cross administra- KEITH CRAIN...... 6 and coordinate care to reduce Michigan Psychological Association. ments like some physicians do See Blue Cross, Page 23 LETTERS...... 6 MARY KRAMER ...... 6 Crain’s events The creative class OPINION ...... 6 Get a closer look at the businesses and people THIS WEEK @ Visit crainsdetroit.com/events PEOPLE ...... 19 for regular updates to the year’s in Detroit’s creative entrepreneur community at WWW.CRAINSDETROIT.COM calendar of Crain’s events. DetroitMakeItHere.com, powered by Crain’s. RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20120206-NEWS--0004-NAT-CCI-CD_-- 2/3/2012 4:38 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS February 6, 2012 Renewable energy biz forms trade association for advocacy Do the BY NANCY KAFFER Clemente served in the Michigan Clean energy made in Michigan CRAIN’S DETROIT BUSINESS House for six years. Before being has the potential to reach a global elected to the Legislature, he was market, he said, especially in Renewable energy companies president of the Southern Wayne countries like Brazil, Russia, India and component makers could have County Chamber of Commerce. and China, which have rapidly Right Thing a $6 billion impact on Michigan’s Because of the state’s manufac- growing middle classes. economy, says a new trade associa- turing capabilities, Michigan has a Other industry associations are tion devoted to advocating for ac- chance to position itself as “the re- focused on building awareness of celerating the growth of that sec- gion of choice” for makers of clean the sector. The energy council, tor within the state. energy devices and components, Clemente said, will concentrate on Ethos Week The Energy In- the study found, with the potential advocacy but also on building rela- novation Business to make Michigan “the hub of new tionships between energy compa- Council formally energy manufacturing.” nies, potential customers and out- March1-1 launches The clean, renewable energy side entities that can help spread Wednesday at sector includes solar, wind, ad- the word, like media companies. an event in vanced energy storage (batteries), The council, which is a 501(c)(6), Lansing. For- biomass and energy efficiency. has 15 members, including Mid- cob.emich.edu mer state law- The council will release the full land-based Dow Corning, Canton maker Ed study, done by Carnegie, Pa.-based Township-based Danotek Motion Clemente is its Hill Group Inc., as part of its Wednes- Technologies, Eaton Rapids-based president. A day launch. Astraeus Wind, Traverse City-based study commis- Clemente Clean, renewable energy also Heritage Sustainable Energy LLC and sioned by the group found that will see a boost as the auto indus- Ann Arbor-based FlexSys. even if the sector grows more slow- try moves toward the newest Cor- Clemente said he expects the or- ly than expected, Michigan can porate Average Fuel Economy ganization to be funded by a mix of still see a $3 billion impact, with standards, set to take effect in 2016. grants and dues. Dues will be about 15,585 jobs created. “That will be an innovative structured based on company size, “We’re going to give them the boom for the region,” Clemente and range from the hundreds to voice,” Clemente said. “We’ll help said, noting that companies that the thousands of dollars per year. with policy and advocacy.” make LED lights will see greater Nancy Kaffer: (313) 446-0412, Before taking the paid position use because they put less strain on [email protected]. Twitter: through the new nonprofit, batteries. @nancykaffer WJR’s Paul W. Smith EMU’s David Mielke Prentice plans restaurant expansion, in 5 courses

BY NATHAN SKID and another in West Bloomfield. such as Amish chicken served with CRAIN’S DETROIT BUSINESS Ⅲ A yet-to-be-named kosher Traverse City cherry-red wine mar- bistro is planned as a place that Or- malade and duck breast confit. En- Your Bank’s Restaurateur Matt Prentice said thodox Jews can go for lunch or din- trees will be priced around $30. last week he plans to open five ner. The bistro, which will be at Scott Griffin, president of the restaurants this spring and sum- Coolidge and 11 Mile roads in Southfield-based restaurant real mer, including a steakhouse fo- Berkley, will serve meat products. estate brokerage Griffin Properties Not Lending? cused on affordably priced steaks. It should be open in late June. Pren- Inc., said he has seen more interest The restaurants, to be opened tice said he is developing the menu in new restaurants this year. under the Matt Prentice Restaurant and pricing. “I have over 20 deals in the Group label, are: Also opening, as previously re- works right now for restaurants in Ⅲ Prime Flat ported by Crain’s, will be Gastrono- Southeast Michigan,” Griffin said. Iron Grill, a steak- my, an American bistro in the for- “Over the last two years, we would house serving mer Morton’s Steakhouse at One do 10 to 15 a year.” more affordable Town Square in Southfield. It’s ex- Nathan Skid: (313) 446-1654, cuts of meat — pected to open in April. [email protected]. Twitter: including short That menu will feature items @nateskid ribs, lamb shank and flat-iron steaks — priced at about $20. All the meat will be Prentice Chairman’s Reserve, a high-end brand of Springdale, Ariz.-based Tyson Foods Inc. The restaurant will be on Orchard Lake Road just north of 14 Mile Road in West ours are Bloomfield Township and is expect- . ed to open by the end of summer. Call for a free consultation. Ⅲ Morels, a reincarnation of the Loan amounts: $1,000,000.00 and above. one-time Prentice flagship, featur- ing a seasonal, Michigan-centric s Investment Real Estate s Equipment menu. Prentice said he is looking for an executive chef. Menu pric- s Owner Occupied Real Estate s Turnaround Consulting ing has not been finalized. Morels s Lines of Credit s Loan Modiﬁcations will be on Northwestern Highway s Accounts Receivable s Bank Workouts just south of 14 Mile and is slated to open next month. Ⅲ Deli Unique, which will be a deli by day and diner by night serving traditional American fare such as chicken pot pie and meat- loaf. The restaurant’s location has 800.509.3552 not yet been announced, but it is www.eclipsecapitalgroup.com expected to open this summer in 2207 Orchard Lake Road, Sylvan Lake, MI 48320 Milford. Prentice said it will be “Since 1997” moderately priced. He operates a Deli Unique in Bloomfield Hills 20120206-NEWS--0005-NAT-CCI-CD_-- 2/3/2012 4:34 PM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 5 Fielder of dreams: New slugger could knock ticket sales out of the ballpark

BY BILL SHEA son, who han- listenership. It would appear that CRAIN’S DETROIT BUSINESS TOP-PAID LIST dles the Tigers Fielder will have a positive impact account for on those, at least early in the sea- There are no early numbers yet, Pro athletes: See SMZ. “When son,” said Eric Wright, vice presi- but the Detroit Tigers could sell a who makes what, Page 17 the (Fielder) an- dent of research and product de- franchise record number of season nouncement velopment at Ann Arbor-based tickets this season. was made, we all talked and we Joyce Julius & Associates Inc., which That’s thanks turned it around in a day or two.” measures the impact of sponsor- to three factors: Fielder was scheduled to be fea- ships across all forms of media. The unexpected tured in a local-market Super Bowl “The Tigers coming off a play- signing of free- pregame TV spot for the Tigers on off appearance were already look- agent slugger WDIV-Channel 4, the NBC affiliate ing pretty good from a marketing Prince Fielder to airing the game in Detroit. standpoint. I would imagine the a nine-year, $214 A campaign touting single-game Fielder addition would help move million contract; tickets will launch in March, any remaining sponsorship inven- the well-stocked Michelson said. Fielder also will be tory for the upcoming season.” team coming off added to the team’s digital market- Having Fielder and other stars a year in which Fielder ing and other forms of advertising. locked up for big sums for several it fell just short The agency has handled market- years can keep the money coming of the World Series; and the local ing for the Tigers and Detroit Red in, he added. economic recovery. Wings — both are owned by the Il- “Long term, with stars such as Detroit’s peak number of full- (Justin) Verlander, Cabrera, and itch family — since 2005. season tickets sold was 27,000 in now Fielder just now entering into It’s unclear how much the 2008, when they traded for elite hit- their professional primes, it is logi- Tigers pay for SMZ’s services be- ter Miguel Cabrera, then with the cal to assume the franchise has the cause no one involved will talk Florida Marlins, according to pub- potential to be successful for a sus- lished reports. As the economy about it, but it was reported in 2000 tained period of time,” Wright said. soured, and the team finished in by Advertising Age that the team “Marketers may be inclined to fifth place, people slashed enter- paid Birmingham-based Brogan & pay a little more and commit to a tainment spending and the season- Partners Convergence Marketing an longer contract if the core the ticket base fell to 15,500 in 2009. estimated $2 million for one year Tigers have built appears to be a It dropped to just over 13,000 in of work — and that was before dig- winning combination for the long 2010 before recovering at slightly ital and social media were a factor. haul. As always, much will be de- more than 15,000 last season. Sta- Getting more fans in the seats will termined by what happens on the tistics for partial-season ticket open other revenue streams for the field this year.” sales weren’t available. Tigers, such as sponsorship deals. Bill Shea: (313) 446-1626, When news of the Fielder signing “Corporate sponsors love big at- [email protected]. Twitter: went public on Jan. 24, the Tigers tendance figures, viewership and @bill_shea19 ticket office handled calls until 8:30 p.m. Team management has said there’s been a frenzy of interest in season tickets, individual game tickets (not yet on sale), suite rentals and corporate sponsorships. No specifics have been disclosed. BUSINESS LITIGATION Some calls are inquiries about prices rather than purchases — yet. “Since season ticket sales are before the season starts, perceptions IS OUR BUSINESS are what matters. So if the fans in Detroit expect the Tigers to be much better, that could lead to a huge boost,” said David Berri, associate professor of applied eco- Don’t let a dispute disrupt your business. nomics at Southern Utah University At Sommers Schwartz, we make your business and president of the North American Association of Sports Economists. goals our top priority. “Clearly the economy plays a role here, as well. Since the automobile We respect your need to resolve a dispute industry has rebounded, we should quickly and efficiently so you can get back expect ticket sales to also go up.” to business. For the 2012 season, ticket packages for all 81 home games at 41,255- seat Comerica Park range from Alternative fee arrangements available. $1,053 for bleacher seats to $5,751 for spots near the on-deck circles. Team officials have said the Fielder deal has sparked even more fan interest than Cabrera’s arrival, based on the deluge of calls. The press conference alone had 15 television cameras set up and nearly 100 media personnel. Contact our office for a free consultation To capitalize on the fan enthusi- asm for Fielder, son of former Tiger Cecil Fielder, the team asked its advertising agency, Troy-based Simons Michelson Zieve, to quickly add the first baseman to its marketing campaign. Powerful Attorneys. Remarkable Results. Television footage and photos from the press conference an- KDDZ/> Θ /Ed>>dh> WZKWZdz >/d/'d/KE ͻ KEdZd /^Whd^ͻ WZK&^^/KE> D>WZd/ >/d/'d/KE nouncing Fielder’s signing have been added to the team’s current | | campaign of broadcast and print www.sommerspc.com 248-415-2234 1-888-884-3878 | 2000 Town Center, Suite 900, Southfield, MI 48075 advertising for season tickets. “We were able to turn that around ADVERTISING MATERIAL pretty quickly,” said Debbie Michel- 20120206-NEWS--0006-NAT-CCI-CD_-- 2/3/2012 5:19 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS February 6, 2012 OPINION MARY KRAMER LETTERS Detroit, Greece share A weighty, worthy Tax hikes a resistance streak look at Detroit no way to Does Detroit need pages. But actually, another book chroni- the design by art direc- cut deficit s Detroit Mayor Dave Bing and city unions continued cling its rise and fall in tor Lorraine Wild lets negotiations, we noticed a recent news report: photographs? Taubman’s sharp eye Editor: A “Greek politicians and media have reacted angrily in At 6 pounds, 6 and images stand on I am writing as a lifelong De- troit-area resident and business- recent days to Germany’s pressure, viewing it as a humiliat- ounces, “Detroit: 138 their own before you man who has subscribed to ing curb on national sovereignty.” Square Miles” answers ultimately check the that question with a re- index for details. Crain’s Detroit Business for many Sound familiar? sounding (and perhaps Because of the pro- years. I read Keith Crain’s column When you’re in the soup — and in danger of taking down a thudding) “yes.” ject, Taubman says she in the Dec. 12 issue titled “A sim- entities around you (as Greece could do with the rest of the Julie Reyes Taub- has become “obsessed” ple solution for the state’s deficit,” and I must say I was disappointed European Union) — it’s easy to throw stones at healthier man’s work, seven with Albert Kahn, who years in the making, designed many of the to read his idea of how to poten- neighbors. Just as Greeks are resisting German attempts to began when she and industrial landmarks of tially solve the state’s vexing fi- “help” Greece do what it seems unable to do for itself, Detroit her husband, retail mall magnate the early 20th century. She can rat- nancial problems, as he put it. politicians and professional protesters are resisting a state- Robert, joined artist Clinton tle off the attributes of the Packard His thoughts of raising the sales appointed emergency manager. The equation seems to be: Snider for Snider’s personal tour of plant (sealed sash windows, rein- tax on items purchased online or raising any type of taxes to solve a sovereignty = vote. Detroit that began forced concrete) with retiree on through the problem that has been around for The initial tab for the Greek bailout — $145 billion — may Dmytro Szylak’s shuttered Ford quite some time is the wrong way not be enough because Greece isn’t living up to conditions for backyard fantasia plant in Highland to go. It is peculiar for a business that help. Promises of laying off 30,000 public sector workers in Hamtramck. Park (the modern leader to float the idea of adding have so far resulted in under 1,000 staff cuts. And the country’s By the time the assembly line’s more taxes on a state that is clearly group stood on the birthplace) and on over-taxed, and this sends the pension system (not unlike Detroit’s) is unaffordable. fifth floor (“it was- to the Rouge plant wrong message to our state leaders. The only big difference between Detroit and Greece may n’t caved in then”) still at work build- The politicians we have in office be the number of zeroes in the debt. of the ruins of the ing trucks and get paid enough by the taxpayers Packard plant on cars. that they should be able to come Grand Boulevard, “You can learn up with another way to lower the A Julie Reyes Taubman self-portrait Biz students fear falling ethics Taubman said she more about our deficit other than making the was stunned by the scale of what industrial history here than any- hard-working public shell out she saw around her. “It was an where else,” she says. “Nobody more money from their pockets. So what worries college-level business students most? Be- emotional experience for every- has wrecked it.” Keith Crain’s idea of taxing is just sides finding a job, it appears that many worry that success in one,” Taubman said of the sprawl- When she started taking photos kicking the can down the road. their future field might require them to behave unethically. ing complex. “Bobby had tears at the Packard plant, she won- Patrick Fenton running down his face.” dered: “Why doesn’t everybody CEO The more than 2,000 students surveyed at 23 universities Fenton Development Group Though she’d never taken a seri- know about this?” The answer, of across the United States also see now how “lower ethical ous photo before, Taubman started course, is lots of people do know standards” can affect their own finances, including savings taking photos. Lots and lots of pho- about it, just not people Taubman ‘Truth’ is misleading tos. And along the way, she be- probably encountered in her so- and retirement funds. Editor: Wayne State University marketing professor Richard came a self-taught expert on 20th cial and business circles. century industrial history. That’s actually one big reason The comment made by “The Beltramini was part of the team that conducted the research, Her first book has some advan- the project is important. She is Truth” (“Snyder, State of the State,” Talk on the Web, Jan. 30) with results published in the Journal of Business Ethics. The tages: Her friend, author Elmore getting more people interested in about the calculation of unemploy- study follows similar research projects Beltramini worked Leonard, wrote the foreword. And Detroit. ment statistics based on the num- the book has been covered by Taubman, who grew up in Wash- on in 1984 and 1991. Concerns about ethics are higher now ber of unemployment claims is Vogue, the New Yorker and ington, D.C., the daughter of an en- than in the two prior student surveys. simply false. Women’s Wear Daily. But she gen- gineer-turned-beer-distributor, It seems like everyone has an It means business students today are absorbing the sober uinely seems just as excited about gives outsiders — and people who opinion about unemployment sta- lessons of Wall Street excesses that helped to drive the 2008 selling the book at Oak Park’s Book know Detroit mostly by its freeway tistics, as well as quite a few con- exits — a striking view. Some im- economic meltdown. Beat store as she is schlepping it to spiracy theories, but none of these ages are beautiful, some are sad, And closer to home — at least for Wayne State students — book parties in Manhattan. The people will take the least bit of time others inspiring. It’s simply an are lessons coming from the largest antitrust investigation book, with an initial press run of to visit www.bls.gov, where the Bu- 3,200 is into its second printing. amazing gift to her adopted home. in U.S. history (See story, Page 3), with the focus on bid rig- reau of Labor Statistics lays out its (List price is $65; Amazon has it for Mary Kramer is publisher of methodology for all to see. Not sur- ging and price fixing. less, but watch out for shipping Crain's Detroit Business. Catch her prisingly, that methodology is One unavoidable lesson for students is they perhaps charges based on weight!) take on business news at 6:10 a.m. thorough and reflects the changing should add a J.D. degree to their MBAs. Every supplier I initially was put off by the de- Mondays on the Paul W. Smith show dynamics of our economy. sign because it requires constant on WJR AM 760 and in her blog at caught up in this mess will be paying big bucks for legal Mark Maisonneuve referrals to back-of-the-book cap- www.crainsdetroit.com/kramer. CFA counsel. tions for the shots on the prior 450 E-mail her at [email protected]. Eastpointe KEITH CRAIN: Somebody isn’t getting a fair shake … us

I’ve been ranting and raving that Michigan is ig- in the Republican camp dates to get around to all the states, elections on the same date. about elections for quite a while, nored for weeks while to make Michigan’s pri- so they would ignore smaller I still haven’t figured out why and although everyone still is ig- the candidates for the mary on Feb. 28 actual- states with fewer convention dele- we don’t try to rectify our mis- noring me, I think it’s an issue that presidential election ly matter. gates. take. It’s not just Michigan that is long overdue. are duking it out every- But it’s pure luck that So why don’t they complain deserves a better shake during This country and our two politi- where else? Michigan will have about the same thing during a na- these primary campaigns: It’s cal parties need national primary This time around, the some influence on the tional election? Do the candidates every state that is farther down elections. big action is among Re- party’s eventual choice. spend all their time in the big the line following the first few. I have talked with a lot of folks publicans; during the Until recently, it looked states with the most votes in the Maybe there’s a legal challenge who are far deeper into this whole last election cycle, De- as though Michigan Re- Electoral College? Probably so, here. political process and still don’t mocrats were fighting publicans wouldn’t re- but that is the way the system is It seems to me that it would be have the slightest idea why Iowa and Michigan changed ally have a say in this set up. better for the candidates and make or South Carolina or Florida or its primary date to the important process. By the way, everyone talks a lot more sense for the voters. Nevada are more important than peril of all these politicians. The biggest objection to a na- about “Super Tuesday,” which is This is a change that makes delegates from Michigan. What is By the simple luck of the draw, tional primary that I hear is that it nothing more than a whole bunch sense and happens to be long over- so wrong with our political system there will still be plenty of intrigue would be impossible for candi- of states having their primary due. 20120206-NEWS--0007-NAT-CCI-CD_-- 2/3/2012 4:39 PM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 7 New owners plan to rebuild defense firm Burtek by diversifying

BY CHAD HALCOM how many employees continue at some of our other companies in tions in court by rival private eq- n’t communicate about its inten- CRAIN’S DETROIT BUSINESS the new company. ways that will help it expand itself uity bidder Speyside Partners LLC tions after the sale, and Burtek’s Other Michigan companies in into new commercial business. We and The South Main Co. LLC, a Troy- defense industry customers would A smaller, leaner Burtek Enterpris- Wynnchurch’s portfolio include see a connection with Fabco as a based vendor to Burtek, to inter- have been skittish about a buyer es Inc. will look to rebuild by diver- Heninges Automotive Inc. in Farm- supplier of components to the vene in the sale. who wouldn’t make the same as- sifying into other industries, pur- ington Hills, crash test dummies heavy vehicle industry, that could Jeffrey Stone, managing direc- surances Wynnchurch could. suing new military contracts and maker Humanetics Inc. in Plymouth help Fabco also secure some new tor for Ann Arbor-based Speyside, “This management team had the possibly rolling in business from and Android Industries LLC in Flint. military business.” said it was still willing to offer $9.9 incredible level of trust from the future acquisitions by Wynnchurch Theodore said Wynnchurch is ex- Theodore said the ownership also million for Burtek last week. customers, and … the pre-(sale) Capital Partners LP, which pur- ploring ways that Burtek can work is focused on helping Burtek land “They (BBK) didn’t seem to be communication between (Burtek chased it for $9 million last week. with California-based Fabco Auto- future defense contracts, and is con- motivated to maximize proceeds. and Speyside) gave me concern as The Rosemont, Ill., private equi- motive Corp., which it acquired last sidering future additions to its port- The banks were all covered ... but to what would happen to the com- ty firm with offices in Bloomfield fall, but it does not plan a merger. folio that would benefit Burtek. who really got harmed here was all pany post sale,” he said. “I also Hills closed on the acquisition “Our job now is to help it Wynnchurch originally offered the unsecured creditors,” he said. wanted to see jobs preserved. Thursday for the Chesterfield (Burtek) secure growth, and we do $14 million for Burtek two months “They are usually given a little That’s important for the communi- Township defense contractor, after expect to make some (future) ac- ago, but twice reduced the offer as more consideration during these ty, but it’s also good for business.” U.S. District Judge Victoria quisitions that also will help its Burtek lost some of its contracts transactions than what we just Chad Halcom: (313) 446-6796, Roberts approved the sale of the as- business,” he said. while negotiations were pending. saw.” [email protected]. Twitter: sets of Burtek Inc., which had been “Burtek can also cooperate with Roberts last week rejected mo- But Lefkowitz said Speyside did- @chadhalcom in receivership since October. The acquisition deal satisfies a committee of banks that held $13.9 million in combined debt notes on Burtek, led by Pittsburgh- based PNC Bank NA, which brought a lawsuit as its largest creditor to seek a receiver. Barry Lefkowitz, managing director of Southfield-based BBK Ltd. and court-appointed receiver for Burtek, said the company itself was able to generate positive cash flow during the receivership and supplement the Wynnchurch offer, so the banks were paid in full. Terry Theodore, partner at Wynnchurch in Bloomfield Hills, said the current management team remains in place and Burtek will continue to operate at its Chesterfield headquarters. Burtek had 214 employees and was projecting $45 million revenue for 2011 when it entered receivership, but Lefkowitz said the company saw employee attrition along with lost contract revenue prior to the sale. It was unclear exactly Crain names Providing working capital new HR chief to help GHAFARI reshape skylines

Margee Kaczmarek has been from the Midwest to the Middle East. hired as chief human resources officer for Crain Communications Inc. TM She replaces Laura Anger, who Opportunity at every step. left to become executive vice president of human resources at Troy-based A comprehensive export financing solution helped GHAFARI Associates grow in key expanding markets. As a Flagstar Bancorp Inc. leading architecture and engineering organization, GHAFARI operates worldwide. To help them, we coordinated Kaczmarek, a full breadth of global credit, trade services and foreign exchange solutions. Structuring a groundbreaking 44, most recently served as se- Export-Import Bank solution to expand working capital availability and reduce risks helped them continue nior vice president, human to build their business from Detroit to Abu Dhabi. resources at Kaczmarek Market Strategies in Livonia, a global marketing research and consulting firm. She Call 1.313.221.9394 or visit bankofamerica.com/businesssolutions also has served as a senior vice president, human resources, at En- tertainment Publications in Troy, and as regional human resources manager at Tenneco Automotive in Monroe. She has a bachelor’s degree in communications and a master’s in labor and industrial relations, The Marvin I. Danto Engineering Development Center, designed by Ghafari, is located on Wayne State University’s campus in Midtown Detroit.

both from Michigan State University. “ Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed She also serves on the board of di- globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment rectors for the new Master of Sci- banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of ence in market research program which are registered broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affi liates: Are Not FDIC Insured y May Lose y for Michigan State University Value Are Not Bank Guaranteed. ©2012 Bank of America Corporation ARM1N4G5 through the Eli Broad School of Business. DBpageAD.qxp 1/31/2012 3:54 PM Page 1

Home ﬁeld advantage It’s no surprise that more than two-thirds of Wayne State’s business graduates live in Metro Detroit. When our talented and highly skilled students study their options, they see Detroit as a land of great opportunity. Take Nicole Blaszczyk, who landed her dream job as marketing coordinator for the Detroit Tigers following graduation. She and others like her bring the expertise they’ve honed in our classrooms to the streets of the city, with sights set on the region’s economic recovery. Their efforts are bolstered by a worldwide network of Wayne State business graduates — more than 31,000 strong. School of Business Through innovative programs such as B Start for highly motivated students and access to global Administration internships in our own backyard, Wayne State puts business majors in position to hit it out of the park. Learn more about the WSU School of Business Administration at business.wayne.edu. 20120206-NEWS--0009-NAT-CCI-CD_-- 2/3/2012 11:51 AM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 9

NOTEBOOK International students part of talent pipeline Wooing international students Business education can help universities and colleges with their bottom lines. It’s also a long-term play for helping the region retain talent. For state universities, international student tuition can help defray funding cuts from recent state budget reductions. CEOs make the dean’s list At Michigan State University, the approximate cost for an in-state freshman year is $21,026, while the out-of-state student would pay Business schools $39,896 and the international student $44,827. Private schools typically charge flat tuition rates but turn to executives also consider recruiting international students a big priority. Besides the university revenue to stay competitive stream, the value of the BY DUSTIN WALSH international student’s business CRAIN’S DETROIT BUSINESS connections – or significant people in the student’s education path – he ability to think and act like a top-lev- should not be underestimated, el private sector executive is a quality educators say. T growing in demand for upper echelon “We tend to think of the financial leaders in higher education, according to a impact Chinese students have right recent study. now, but there’s a long-term And that is translating into a new kind impact,” said Peggy Blumenthal, of leader for a number of top posts at senior counselor to the president at Southeast Michigan institutions. Among the Institute of International their challenges and calls to action: chang- Education. (See story on Chinese ing MBA demographics, international ex- student enrollment growth, pansion and unparalleled budget con- Page 11.) straints. “It’s quite clear that when people As economic pressures rise, fueled by di- are educated abroad, they retain minished state funding, business schools links and affection for the place “must innovate, refocus and restructure or they were educated.” She said that risk falling behind their academic competi- many students will return to China tors,” said an October report by the and start their own companies, and Korn/Ferry Institute. their links to Michigan could pay off “The enterprise of business education in the future. has become increasingly more complex,” “Many students are from richer said Ken Kring, co-managing director of families, and parents actually want the global education practice at Los Ange- their children to stay after college les-based Korn/Ferry International Inc. and co- and expand their family’s author of the study. “Margins have de- businesses in the U.S.,” said creased and the challenges of filling Lyanne Yang, executive vice classrooms have increased.” president of the Detroit Chinese The front line of this evolution is in- Business Association, an creasingly headed by new CEO-like busi- organization that helps foster ness school deans. relationships between American For example, some universities cut out and Chinese companies. the administrator role and directly hired While international students are former CEOs. New York-based Pace Univer- not allowed to declare intent to stay sity hired former Viacom Entertainment CEO in the U.S. after they’ve received Neil Braun, and Boston University hired for- their education — and many do mer Quest Diagnostics CEO Kenneth Free- intend to return to their home man in 2010. countries — efforts are being made Universities across the country increas- in Michigan to retain immigrant ingly want leaders with organizational, strat- talent whenever possible. egy and management expertise, Kring said. Based on findings that “They really need to be enterprisewide immigrants file nearly half of managers with solid operational skills, (hu- Michigan’s international patents man resources) skills, and have multiple and are three times more likely to stakeholder skills,” he said. “Historically, start businesses, the University good deans just had to not infuriate the fac- Research Corridor received a ulty and raise money; now, they have to BOB CHASE $450,000 grant last June from the manage a whole movement with the staff Kim Schatzel, former University of Michigan-Dearborn business school dean and current provost and New Economy Initiative of Southeast vice president at Eastern Michigan University, says state funding cuts have forced business school and faculty toward cultivating a better edu- Michigan to create the Global deans to figure out how to do more with less. cation model.” Detroit International Student ceived $32 million less in state funding for downturn in late 2008. Retention Program. Locally, academic executives who are business-minded are being tapped — and the 2011-2012 academic year. The universi- The average number of applications for The retention program functions challenged — to put their expertise to the ty cut up to 200 jobs, in- two-year, full-time MBA programs declined as a central resource for employers, test. cluding 80 jobs in July, almost 10 percent in 2011, according to the students and universities to explain Kim Schatzel, former University of Michi- blaming the funding cuts. Graduate Management Admission Council. the immigration and cultural issues gan-Dearborn business school dean and cur- EMU saw a $17 million “Giant firms aren’t hiring hordes of peo- involved with applying for Michigan rent provost and vice president at Eastern cut. ple like they used to,” Davis-Blake said. jobs. Michigan University, said business school This means under- “It’s our (business school deans) job to “International students have deans now are forced to do more with less standing the needs of the work outside our silos and try to predict never had a resource like this,” because of cuts in state funding. business student and em- the jobs of the future in an era that’s finan- said Athena Trentin, director of the This year, funding to Michigan’s 15 pub- ployers, said Alison cially constrained.” retention program. “We’re trying to lic universities was cut by 15 percent, in ex- Davis-Blake, dean of the This forced business school deans to de- promote Michigan by saying, ‘this is change for keeping tuition increases under Ross School of Business at velop innovative and differentiated graduate a destination you want to be in.’ ” 7 percent. The result was a reduction in Davis-Blake University of Michigan. programs to a new student in a new econo- — Meghana Keshavan millions of dollars in funding. MBA enrollment is stagnant, and the hir- Wayne State University, for instance, re- ing of MBAs was stifled by the economic See Deans, Page 10 20120206-NEWS--0009,0010-NAT-CCI-CD_-- 2/3/2012 10:36 AM Page 2

Page 10 CRAIN’S DETROIT BUSINESS February 6, 2012 Focus: Business Education Deans: Execs on the list ■ From Page 9 my, she said. “The scope of operations has had to expand dramatically,” Historically, good Davis-Blake said. “In addition to “ our undergrad, MBA and doctoral deans just had to not programs; now, in addition to all that, there’s a proliferation of infuriate the faculty MBA programs.” Worldwide, more schools and and raise money; competitors are offering part-time, executive, evening and weekend now, they have to MBAs, she said. Executive education is a new fo- manage a whole cus because it’s less expensive to movement. offer than traditional graduate ” courses. Michigan State University Ken Kring, generated approximately $2.6 mil- Korn/Ferry International Inc. lion from custom executive education programs in 2010. UM declined to reveal specific tant skill.” revenue from its executive pro- The needs of employers and re- grams. ductions in funding have caused Margaret Williams, interim dean geographic boundaries to dimin- of Wayne State’s School of Business ish as well, the Korn/Ferry study Administration, said. said the new “Doing business globally has be- master’s busi- come a necessity for even small to ness student is midsized companies, so interna- “for a little bit tional knowledge and experience more of a just-in- is becoming a primary require- time delivery, ment of business leaders,” the not a long, full- study said. time plan of “That in turn is pushing busi- study.” Williams, ness schools to expand their offer- who has a doc- Williams ings into new parts of the world torate in organizational behavior, through joint ventures and other helped spearhead a new program arrangements, requiring deans set to roll out in the fall — a 13- who can lead these initiatives.” hour graduate certificate for non- (See related story on the boom of business graduates looking for a Chinese students, Page 11.) jump-start in business. The new Davis-Blake said business edu- certificate transfers toward WSU’s cation is about global business and part-time MBA program. global competition with interna- “There’s more importance (for tional schools, making enterprise business school deans) to focus on management key in the role of the environmental scanning,” she dean. said. “We can’t just put courses on “(Business school deans) need a the books and expect students to much better understanding of the take them. That may have been the business school landscape global- higher-ed model of the past, but we ly, and who our global competitors need to work hard to make sure are and where our students are the training is relevant to employ- coming from,” Davis-Blake said. ers more than ever.” “We’re operating and expanding The macroeconomic conditions in much more complex markets forcing tighter budgets as faculty than just Europe these days, and salaries continue to rise has forced we need to understand the mar- deans to navigate a shift in re- kets we’re serving.” sources that includes the use of For instance, UM’s Ross School non-tenured faculty, the study said. operates a specialized satellite In Michigan, the share of non- campus in India, The Center for tenured and non-tenure-track in- Global Resource Leverage: India. structors increased to 38 percent of Davis-Blake, who became dean instructors in 2009 from 29 percent in July, is an expert in organiza- in 1993, according to data compiled tional behavior and management. by the National Center for Education She earned a master’s in organiza- Statistics. More recent data was not tional behavior from Brigham available. Young University and a doctorate in At the state’s 15 public universi- organizational behavior from Stan- ties, non-tenured instructors rose ford University. to 61.4 percent of faculty in 2009 The elements of the new busi- from 56.4 percent in 2001. ness school, and its redefined Resource management is vital to dean, are not just the trend du the survival of today’s business jour, but inherent realities of the school, Schatzel said, a former en- times, Davis-Blake said. The result trepreneur, founding president is the closing of schools unwilling and COO and CEO of Livonia- or unable to change. based auto components manufac- “Business schools are heading turer ICM/Krebsoge. for a huge shakeout, and not all the “Part of what you do in busi- players will survive,” she said. ness, particularly at the CEO level, “When an industry is trans- is look for outstanding partners formed, there’s a point when the and understand that network; who transformation naturally reduces are your suppliers and vendors,” the players. There will be fewer she said. “Now, universities need people offering MBAs once we to extend their network of support. slice up the new market.” The need for (business school Dustin Walsh: (313) 446-6042, deans) to collaborate externally is [email protected]. Twitter: becoming an increasingly impor- @dustinpwalsh 20120206-NEWS--0011-NAT-CCI-CD_-- 2/3/2012 10:39 AM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 11 Focus: Business Education Michigan universities recruit Chinese McManus students to add diversity, revenue DISTINGUISHED BUSINESS LECTURE SERIES

BY MEGHANA KESHAVAN agent’s name or company. tive industry and recent growth in SPECIAL TO CRAIN’S DETROIT BUSINESS “There’s a lot of competition,” the state’s tech sector allow local she said. “It’s not just UD Mercy — universities to promote themselves Recruiting students from China it’s UCLA, it’s Northwestern — as major players in the global econ- is becoming big business. A num- everyone’s looking for internation- omy. SCHOOL OF BUSINESS ber of Michigan universities are al students. And China is the But much of the focus for Michi- Guest lecturer aiming to diversify their campuses hotbed for recruiting.” gan schools is to build partnerships Joe Vicari, President and CEO of — and their revenue — by market- The Lawrence Technological Univer- with universities in China, so that Andiamo Restaurant Group ing themselves to Chinese students. sity admissions office uses three re- students won’t need agents or ad- At Michigan State University, the cruiters that the university met vertising to know where to apply. The Business of Fine Dining number of Chinese undergrads has through agent conferences in Chi- Presidents, provosts and faculty grown from 41 in 2005 to 2,410 in na. During these events, university travel abroad to draw up articula- 6WGUFC[/CTEJŖRO 2011. admissions staff meet and inter- tion agreements with Chinese uni- Smaller institutions also report- view candidates in China to serve versities, to make an American ed- ed gains on a smaller scale. The Uni- as recruiters. ucation more accessible. Madonna University | Franciscan Center versity of Detroit Mercy in 2005 had “We want “You build relationships. You 36600 Schoolcraft Road, Livonia, MI 48150

just one student from China. In them to be credi- build name recognition. Once MADONNA UNIVERSITY PLEASE JOIN US FOR THIS INFORMATIVE, FREE LECTURE 2011, there were 124. ble, we want you’ve built a relationship in Chi- R.S.V.P. at 734-432-5356 or [email protected] “China really opens up a new them to promote na, the word spreads,” Kucera said. market for American universities,” our programs Students are then given the op- said Kevin Kucera, associate vice the way we want tion to spend their first year or two president for student affairs and them to, and we of college in China and finish their enrollment management at Eastern want them to un- degrees in America. Michigan University. “The fact that derstand what the economy in China is really type of student changing means that many fami- we’re looking lies now have the wherewithal to Kujawa for,” said Lisa afford U.S. tuitions.” Kujawa, assistant provost for en- EMU’s Chinese student body rollment management at LTU. grew from 93 in 2005 to 204 in 2011. “We’ve turned down several.” The University of Michigan has It’s more cost-effective for small- more than doubled its Chinese stu- er universities to use Chinese dent numbers, from 796 in 2005 to agents, said Peggy Blumenthal, se- 1,853 in 2011. nior counselor to the president at We Put the 11 in 2011 Wayne State University’s base of the IIE. Last year, LTU spent about Chinese students grew from 271 in $15,000 to send a single admissions 2005 to 335 in 2011. counselor to tour China, while The growth trend is consistent overseas recruiters tend to be paid among many universities in Michi- on commission based on recruit- gan and across the country. Busi- ment success, she said. ness, engineering and science are But these contract agents have a the leading fields of study. lukewarm reputation among stu- Chinese students contributed dents and universities, Blumenthal about $158 million to the Michigan said. economy, according to the Institute “Some agents operate very legiti- of International Education’s 2010 Open mately, others charge exorbitant Doors report. In 2011, the amount prices and ‘coach’ students on in- increased to about $185 million. terviews — that has (caused) a The report found that 26.2 per- backlash,” she said, as coaching cent of Michigan’s international can cost an additional $3,000 to students were from China, followed $4,000. “When admissions (coun- by 13.8 percent from India and 11.2 selors) see a third identical essay or percent from South Korea. hear the exact same statement for UM’s international student popu- the fifth time, they decrease the lation also showed Chinese stu- chance of a student getting in.” dents leading the lineup: Thirty- At Lawrence Tech, the admis- three percent of the group was from sions office created a video to play China, 15 percent from India and 13 during student recruitment trips in percent from South Korea. China. The video features Chinese MSU said its brand awareness students studying and socializing helps a great deal in China. so that when recruiters go to China “Chinese students are very “they can see people who look like brand-conscious, and ranking-con- them in an American university,” Huron Capital Closes 11 Transactions in 2011 scious, and MSU is very well Kujawa said. known in China,” said Patti Croom, EMU works with Hobsons Inc., a In 2011, Huron Capital completed 11 transactions with a total value exceeding associate director for international Cincinnati-based international re- $435 million. Our activities ran the gamut of platform acquisitions, add-ons admissions at MSU. This, she said, cruitment firm, to participate in is the largest contributor to the sky- Web-driven college fairs. Students and exits. With plenty of dry powder in our $350 million Fund III, we’re rocketing number of applicants in China video chat with EMU pro- looking forward to even more success in 2012. from China. fessors and admissions staff to Smaller Michigan schools with learn about curricula and student smaller budgets use different tac- life. tics to attract students, ranging There are also a number of orga- from paid contractual recruiters to nizations, such as the US-China Eco- advertising. nomic and Cultural Development Al- University of Detroit Mercy uses liance, that help bridge the gap a Michigan-based contractual between Chinese and American agent, who employs another 10 re- university systems. Through sum- cruiters in China, said Denise mer camps, exchange programs PLATFORM INVESTMENT CRITERIA CONTACT INFO Williams, vice president of enroll- and recruitment tours, regional ment and student affairs at UDM. universities are able to court the Revenues Up to $300 million Detroit Ofﬁce: 313.962.5800 Agents travel from school to right students to fit in their pro- EBITDA $5 million or more Toronto Ofﬁce: 416.234.0313 school throughout China, encour- grams. Equity per Deal $10 - $70 million www.huroncapital.com aging students to apply for the Detroit’s manufacturing legacy schools they’re paid to represent. puts many Michigan schools on the Williams did not disclose their map, Williams said. The automo- 20120206-NEWS--0012-NAT-CCI-CD_-- 2/3/2012 10:40 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS February 6, 2012 Focus: Business Education Madonna U reaches out to Haiti with online business program

BY MIKE SCOTT The first 16 students finished She felt that offering its residents fortunately, it is impossible to help made available through Madonna SPECIAL TO CRAIN’S DETROIT BUSINESS their first semester in early Janu- affordable, high-quality education young adults in tent homes who donors, and some through a part- ary, and the university hopes to of- would allow its are very poor, and the country also nership with Haiti Tec, an on-site Assistance in the wake of Haiti’s fer classes to an estimated 20 Hait- middle-class, has a (comparably) small but very educational system similar to the devastating earthquake in Janu- ian students, ages 21-28, per university-aged wealthy class that doesn’t need the American system of community ary 2010 has come through many semester. students to support. We want those in the mid- colleges, Kujawa said. sources, but one local university is It is considered one of the only build successful dle to have the chance to create However, more funding is likely bringing distance learning to higher education distance learn- careers in Haiti. successful businesses and have available through Haitian govern- Haitians who often have no other ing programs managed by a for- “Our focus is good careers working for the gov- mental programs as the program option for higher education. eign university in Haiti. the tiny middle ernment or organizations in shows success and Madonna ad- Madonna University in Livonia de- Madonna University’s presi- class that may Haiti.” ministrators develop long-term re- veloped the Haiti Education Lead- dent, Sister Rose Marie Kujawa, only represent The classes cover a wide range lationships with government offi- ership Program late last year as an created the program. She visited 5 percent or so of undergraduate business courses cials. Kujawa online business administration Haiti after the earthquake two of the popula- that lead to a Bachelor of Arts de- “We would love to have (em- program that benefits English- years ago and wanted to find a tion; but those students have no gree in business administration. ployers) and organizations pay speaking Haitians. way to help the nation rebuild. other options,” Kujawa said. “Un- Core funding for the program is internships for our students to help offset some of the costs of the program,” said Madonna associate professor Donald Conrad, who has taught business courses at Madonna for more than 10 years. University administrators also have met with the Haitian secretary and undersecretary of education to research other support possibilities. Students currently are asked to pay a fee that equates to about $100 a semester, Kujawa said. But many can’t afford that, and long-term payment plans are established to support their needs. “(HELP) is not a profit center for us,” Kujawa said. “We want to provide a chance for these students who can’t get that type of education where they are now.” To cover the costs of the program, the university had to hire some part-time help and redirect some of its internal resources. But the business course descriptions are similar to those offered to Michigan-based Madonna students. Nearly 80 candidates were considered for the first semester. Haitian students must be fluent in English and have specific math- ematical skills. They also need access to a computer with Internet service, and transportation to get to that com- -8´78-1)83&)'31) puter. Some of the classes are live online, and others use a course man- 8,)2)<8+6)%8-223:%836 agement system called Blackboard that allows students to participate in discussion groups, see assign- ments and take tests. 7YGGIWWJYP')3WXIPPYWXLI XLVSYKLSYXSYVJPI\MFPISRPMRI Graduate Business Haitian students will be re- EFMPMX]XSMRRSZEXIMWXLIWMRKPI ERHIZIRMRK1EWXIV´WTVSKVEQW quired to participate in an intern- Degree Programs ship or co-op placement facilitated QSWXGVMXMGEPWOMPPRIIHIHMR XLEXEPPS[]SYXSGSQTPIXI by Madonna at a multinational XSHE]´WFYWMRIWWGPMQEXI %X ]SYVHIKVIIER][LIVIERHKS M.B.A. – EVENING AND ONLINE company in Haiti, a non-govern- XLI9RMZIVWMX]SJ1MGLMKER IZIV][LIVI]SY[ERX SPECIALIZED MASTERS PROGRAMS mental organization or a Haitian- (IEVFSVR´W'SPPIKISJ&YWMRIWW based nonprofit governmental or- 17MR*MRERGI¯)ZIRMRKERH3RPMRI MRRSZEXMSRMWEZMXEPTEVXSJ &IEQSRKXLIPIEHIVWERHFIWX ganization. The co-op is an 17MR%GGSYRXMRK IZIV]XLMRK[IHS ERHNSMREKPSFEPRIX[SVOSJ important part of the degree, as RIEVP]EPYQRM)EVRER 8VEGOW*MRERGMEP%GGSYRXMRKERH8E\EXMSR the idea behind the entire project =SY´PPI\TIVMIRGIMXJMVWXLERH MRXIVREXMSREPP]VIGSKRM^IHERH 17MR-RJSVQEXMSR7]WXIQW¯3RPMRI3RP] is to help train and educate the XLVSYKLSYVFYWMRIWWVIWIEVGL VIWTIGXIHFYWMRIWWHIKVIIJVSQ DUAL M.S. IN ACCOUNTING AND next leaders of Haiti, university of- MRM0EFW XVEGOMRKMRRSZEXMSR´W XLI9RMZIVWMX]SJ1MGLMKER FINANCE ficials said. HELP reflects Madonna Univer- MQTEGXSRIGSRSQMG (IEVFSVRERHFIGSQISYV DUAL M.B.A. AND M.S. sity’s educational innovation and HIZIPSTQIRX =SY´PPWIIMX RI\XKVIEXMRRSZEXSV )RKMRIIVMRK compassion for people whose *MRERGI country has been devastated by ,IEPXL7IVZMGIW%HQMRMWXVEXMSR natural disaster, said Edward -RJSVQEXMSR7]WXIQW Blews Jr., president of the Associa- tion of Independent Colleges and Uni- Contact us. versities of Michigan. By offering COLLEGE this program, he said, Madonna is Let’s talk about your future. contributing in a very meaningful KVEHFYWMRIWW$YQHYQMGLIHY ® OF BUSINESS way to the long-term economic re- DEARBORN GSFYQHYQMGLIHYKVEH covery of Haiti. 313-593-5460 “Increasingly, our independent colleges are generating a positive global educational footprint,” Blews said. 20120206-NEWS--0013-NAT-CCI-CD_-- 2/3/2012 11:49 AM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 13

REPORTER’S NOTEBOOK

Sherri Welch FIVE-YEAR TOURISM PLAN writes about nonprofits and Michigan tourism conference services. to include economic Call (313) development focus, Page 15 446-1694 or write [email protected] Meetings and conventions Sherri Welch Medical events in Riney’s sights There are a host of new Putting Cobo center stage conferences headed to Detroit. And if Bob Riney has anything to say about it, major medical conferences could also be headed our way. Convention officials show off upgrades to fill venue’s menu Riney, who is president and COO of Henry Ford Health System, is the BY SHERRI WELCH new chairman for CRAIN’S DETROIT BUSINESS the Detroit Metro obo Center — and much of metro De- Convention & troit — breathed a sigh of relief in Jan- Visitors Bureau. C uary when the Detroit Auto Dealers Asso- During the ciation announced a deal to keep the North bureau’s annual American International Auto Show at the cen- meeting in late ter for at least another five years. January, Riney said he’s The show is a huge economic driver for Riney attended medical the region and a chance for both the car- conference after medical conference makers and region to shine for the nation- in cities like Chicago. al and international press. “Chicago is a great city, but it’s the But it also represents an opportunity to ‘same old, same old’ every time you sell another of the region’s assets: Cobo it- go for a conference,” he said. self. “The cars are the stars … but the auto “My commitment in this new role … is to get medical and bioscientific show showcases — better than any event meetings to Detroit.” we could have here — Cobo’s capabilities as a platform for a variety of events,” said How? Riney has honed his relationship and negotiation skills Thom Connors, regional vice president during his 33-year career at Henry and general manager of Cobo Center for Ford by working in nearly every one of West Conshohocken, Pa.-based SMG. the system’s business units. The Detroit Metro Conven- And he’s forged relationships with tion & Visitors Bureau and De- numerous national leaders as vice troit Marriott Renaissance chairman of the National Center for Center hosted meeting plan- Healthcare Leadership and a past ners, association execu- board member of the American tives, decision-makers for Society for Healthcare Human religious organizations, la- Resources Administration and the bor unions and social orga- American Hospital Association nizations and conven- Commission on Workforce. tions/meeting trade show Carla Connor-Penzabene, director of media for the black-tie sales for the bureau, and her team Connors Charity Preview. The idea are putting in place a plan for courting is to present Cobo, Detroit and the region medical meetings, said Renee at its finest. Monforton, director of Cobo and the Detroit Marriott this year communications. They plan to meet hosted about two dozen potential and ex- with Riney before the end of the isting clients for a “familiarization trip” month to seek his counsel on whether wrapped around the auto show Charity the groups they are pursuing are the Preview. Two out-of-town journalists were ones that make sense for Detroit. also part of the mix. Any new medical conferences coming “We had more people (for the trip) this to the region would join a number of year than last year,” Connors said. other events bound for Cobo. “There’s a great deal of interest.” The U.S. Department of Veterans The auto show “is one of the most im- Affairs plans to bring the National pressive shows staged in North Ameri- Veterans Small Business Conference ca,” given the investments made in siz- and Expo to Cobo in June. USA Gymnastics plans to bring the 2012 able exhibits and the work of display Acrobatic Gymnastics National houses evidenced in the exhibits, Con- Championships to Detroit July 21-25. nors said. “It gives us a chance to show off the And the 2012 Teams Conference and Expo, the world’s leading expo for things we’ll do for them when they come sports event organizers, is set for for their event,” from having the Detroit early October. Shoppe in the Cobo lobby to booking local COURTESY OF COBO CENTER jazz bands, solo pianists, gospel choirs and Planned upgrades at Cobo include a complete renovation of the lobby and meeting spaces, including a Also headed for Detroit: a Church of new food court. our Lord Jesus Christ event in 2013, other entertainers. And, it is hoped, the the 2014 conference of the show helps give Detroit and Cobo and edge Pentecostal Assemblies of the World over its biggest trade show competitors: The visitors bureau, which supported “When we bring people to Detroit, and Youmacon, an anime convention, Indianapolis, Nashville, Cincinnati, Cleve- the familiarization trip we’re selling the destination ... in con- which plans to host its event at Cobo land, Milwaukee, Minneapolis and effort, has not been able junction with a very coordinated, com- 2013-2015. Louisville, Connors said. to invite its own group mitted … team led by (the CVB),” Con- “It’s an ongoing process,” Cobo’s Marriott directly sells Cobo and mar- for the familiarization nors said. general manager Thom Connors said. kets it “because in some instances, we trip in the past few years Hotels, restaurants, transportation Cobo hosted a regional fencing need their space,” said Judy Booth, direc- because of budget con- providers and entertainment venues also competition for the U.S. Fencing tor of sales and marketing for the Detroit straints, said Larry step up to make sure the out-of-town plan- Association last March that drew more Marriott, in an email. Alexander, president ners and decision-makers get a chance to than 1,500 competitors from the U.S. “We need them for the space, and they and CEO of the CVB and see the best the city and region have to of- and Canada. “And they plan to come need us for the rooms. From there we can chairman of the Detroit fer. back,” Connors said. usually spin off overflow rooms to the oth- Regional Convention Facili- er hotels.” ty Authority. Alexander See Cobo, Page 14 20120206-NEWS--0013,0014-NAT-CCI-CD_-- 2/3/2012 10:42 AM Page 2

Page 14 CRAIN’S DETROIT BUSINESS February 6, 2012 Focus: Meetings and Conventions Cobo: Filling venue’s event menu ■ From Page 13 “We’ve got a great product to see,” Connors said. That includes everything from improvements in the convention center district — most notably the RiverWalk — new hotels, restaurants, clubs, the casinos, sporting events, the Detroit Institute of Arts to The Henry Ford in Dearborn and the contributions being made by the corporate community downtown. “People want to be where people are. The more activity in and around a convention center, the more attractive it will be,” Con- nors said. Bringing them back Cobo and the CVB aren’t just targeting new clients. They’re at- COURTESY OF COBO CENTER tempting to bring back clients who Cobo Center haven’t been here in a number of launched years, Connors said. Eatsville USA “We’re seeing a great deal of in- (left) in time terest from former clients — for last year’s specifically professional associa- North tion conventions, many of them American International with a tie to the auto industry.” Auto Show. The organizations are pointing Cobo also out such things as the change in partnered with Cobo’s ownership with the new De- the Andiamo troit Regional Convention Facility Au- Restaurant thority and its commitment to im- Group to open proving the building — as the Vu evidenced by the $299 million reno- restaurant (above) during vation currently under way and Cobo events. the change in Cobo management. When planners are interested, they’re given behind-the-scenes days of the auto show. utive director of the Arlington, tours of Cobo so they can see first- “Although those people are lo- Va.-based National Science Teachers hand the changes taking place. cal, in the future we’ll have the Association, which hosted a confer- Sports Law Experience “There’s no question that Cobo largest ballroom … in ence at Cobo in 2007, had fallen on hard times … that we Southeast Michigan, came in for this lost a lot of groups in the past that Connors said. year’s Charity Pre- no longer come because of deterio- I’d like to see In Your Corner. “And we’re inter- view at the invita- ration of the facility,” Alexander “ ested in booking lo- tion of the Marriott. said. what else cal special events, “I had heard that “Now that (we) have this plan galas and fundrais- Detroit was definite- for renovation and improvement, happens at ers.” ly a city that should we need to get the word out so we Carol Galle, presi- Cobo Center. … be looked at again,” can bring some of those conven- dent of Special D based on chatter tions back.” Events in Royal Oak, I think Detroit among meeting plan- The regional authority, which said she’s been keep- ners, Howard said. Alexander chairs, is working with ing her ear to the could be a good “It was nice to see the CVB and Cobo to develop a ground for updates that the downtown marketing strategy that it hopes to on Cobo’s renova- deal. was alive again — launch in March to communicate tions, on behalf of ” there were people all of the changes taking place, he clients. Delores Howard, roaming around af- said. The presentation National Science ter business hours, for ISES “presented a Teachers Association (and) it seemed like a Upgrades clear picture of how much more comfort- the space will be laid out and the able place to be in terms of safety.” Cobo already has made infra- capacities,” she said in an email. “I Howard said she was struck by structure improvements, such as was particularly the ease of traffic into Cobo’s the installation of energy-efficient impressed with grounds, the beautification lighting and a complete upgrade of the ballroom around the river, the center’s the heating system, Connors said. and atrium brighter lighting, visible green ef- It’s also expanded the exhibit spaces.” forts and the pride Cobo staff space. Special D seemed to take in their work. Other plans include enclosing manages many “I’d like to see what else happens the loading docks, a new atrium nonprofit gala at Cobo Center. … I think Detroit entrance at the Detroit River and dinners, break- could be a good deal, especially for Atwater, and the installation of a fasts and other educators,” she said, given that new, 38,000-square-foot ballroom. fundraisers, and flights, space costs and hotel room Galle Stephen P. Afendoulis Also planned is additional meet- Galle said there rates seem to be more affordable in ing room space set for 2013 in what is a definite need for a larger ball- Detroit than other markets. used to be Cobo Arena, as well as a room in metro Detroit. “We weren’t looking to (imme- complete renovation of the re- “To be honest, we have never diately) close deals; in many cas- mainder of the lobby and meeting been able to find the right fit for es, there are ongoing conversa- spaces, including a new food our clients at Cobo,” she said. “I’m tions,” Connors said. “We’re (just) court. hopeful this transformation will trying to get on their list for (re- Cobo, which has an annual mar- change that pattern.” quest for proposals) for future keting budget of about $200,000, Cobo is also getting promising dates.” hosted members of the Metro De- feedback from locals and out-of- Sherri Welch: (313) 446-1694, I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing troit Chapter of the International Spe- town planners. [email protected]. Twitter: cial Events Society during the public Delores Howard, assistant exec- @sherriwelch 20120206-NEWS--0015-NAT-CCI-CD_-- 2/3/2012 10:43 AM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 15 Focus: Meetings and Conventions Tourism industry to map 5-year plan; economic development an added focus

BY AMY LANE Patricia Mooradian, president SPECIAL TO CRAIN’S DETROIT BUSINESS of The Henry Ford in Dearborn and chairman of the travel commis- When hundreds of tourism in- sion, said holding the first major dustry representatives gather at a industrywide planning session at March conference in Grand the conference provides an impor- Rapids, they’ll do more than net- tant chance to voice input on the work. future shape of Michigan’s They’ll have a chance to help tourism industry. chart the next five-year strategy Overall, she said, the confer- for Michigan’s tourism industry — Yencich Nicholls ence is an opportunity “to inte- a strategic plan set to be completed grate and work together, and to by the end of the year that will en- share” as well as hear “the big pic- vision what the industry should be ture” and vision for the state and by 2017 and how that will differ We have the most tourism. from today. “ Zimmermann said that while “This is not the plan for Travel active people in the tourism has achieved more stable Michigan or the Michigan state promotional funding — re- Economic Development tourism ceiving $25 million in the current Corp., this is an industry plan,” said George Zim- industry in the fiscal year — there are new oppor- mermann, vice president tunities and challenges on the of Travel Michigan, the state gathered horizon. state’s tourism-marketing at the (Pure For example, international mar- arm. “We have the most ac- keting and tourism is an area of tive people in the tourism Michigan major interest to the industry and industry in the state gath- Travel Michigan. ered at the conference. So Governor’s An executive from a Washing- why wouldn’t we take advantage ton-based organization that of that time to do some plan Conference). So why recently formed to promote work?” increased international travel to That’s not all that will be differ- wouldn’t we take the United States is scheduled to ent at this year’s Pure Michigan give a presentation and speech at Governor’s Conference on advantage of that? the conference’s March 27 lun- Tourism, to be held March 25-27 at ” cheon. the Amway Grand Plaza Hotel. George Zimmermann, Brand USA Inc. is the first nation- For the first time, the event is be- Travel Michigan ally coordinated program to mar- ing marketed to the economic de- ket the U.S. abroad, and Zimmer- velopment community and will in- website that will contain informa- mann said there could be clude economic development- tion, explain the planning process opportunities for Travel Michigan and ways to get involved. focused breakout sessions on such and Brand USA to work together, topics as the merging of lodging MSU also will organize the such as in entering promising and real estate development and meetings around the state, in col- markets in Asia. He is a member of expanding the Pure Michigan laboration with the Michigan Trav- Brand USA’s marketing advisory brand. el Commission and Travel Michi- group. The added focus is both a reflec- gan, Nicholls said. She said MSU Beyond the new track at the con- tion of the Snyder administra- will compile input and draft the tion’s combining of business and plan. ference that will present informa- tourism marketing under the pop- Another inclusion to this year’s tion on the connection and correla- ular Pure Michigan brand, as well state tourism conference will be tion between tourism marketing as the fact that tourism is part of members of the Michigan chapter and development and other eco- broader economic development in of Meeting Professionals Internation- nomic development activity and many communities. al, which is holding an education results, the state is continuing to “We’ve long taken the position conference at the same time at the communicate the Pure Michigan that there’s an economic develop- Amway. brand for business and tourism ment component to tourism. Yencich said meeting planners marketing and looking at new op- Whether we’re talking about will join some tourism conference portunities. bringing entirely new businesses sessions and the opening night re- For example, it is considering in from other states, or simply ception, and he said it’s advanta- expanding Pure Michigan adver- growing existing businesses in geous for tourism industry mem- tising partnerships, in which Michigan, tourism fits hand in bers and meeting planners to tourism interests and the MEDC glove with economic develop- have the chance to talk and collab- jointly contribute funds, to in- ment,” said Steve Yencich, presi- orate. clude a business message, Zim- dent and CEO of the Michigan Lodg- Collaboration among the di- mermann said. “Initially our ing and Tourism Association. verse tourism industry was an ob- thought is, maybe tourism and The association produces the an- jective and result of the first 2007- business interests in the same nual conference in collaboration 2011 strategic plan. community join forces with us,” with Travel Michigan and Michi- For example, this year’s confer- he said. gan State University. ence will again feature awards for Other state tourism conference After the strategic planning ses- innovative tourism collaboration elements include a keynote speech sion at the conference, there will in such areas as marketing and pro- by travel journalist Peter Green- be additional meetings held motion, education and training, berg and MSU’s presentation of its around the state as well as online nontraditional partnerships, and annual tourism outlook, including opportunities for tourism industry tourism experience presentation. the industry’s performance in 2011 members “to provide input into The awards began in 2009; they and the forecast for the upcoming the development of goals, objec- will be presented by Gov. Rick tourism season. tives and strategies,” Snyder at the conference’s March Yencich said the conference is said Sarah Nicholls, associate 26 dinner, where Snyder will also expected to draw some 800 atten- professor in the MSU department speak. dees, including tourism represen- of geography and department of The Michigan Travel Commis- tatives, economic development community, agriculture, recre- sion oversaw implementation of professionals and meeting plan- ation and resource studies, in an the first strategic plan and is now ners. email. facilitating development of the Information is available at Nicholls said there will be a new plan. www.milodging.org/conference. 20120206-NEWS--0016-NAT-CCI-CD_-- 2/3/2012 11:27 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS February 6, 2012

CRAIN'S LIST: LARGEST MEETING FACILITIES Ranked by total square feet of meeting space Capacity of largest meeting room Facility Total Square feet theater/classroom Number of Address square feet of of largest banquet/cocktail meeting Rank Phone; website Top executive meeting space meeting space style rooms Amenities The Henry Ford Patricia Mooradian 544,020 22,000 600/200 20 Horse-drawn carriages, Model T rides, historic carousel, steam 20900 Oakwood Blvd., Dearborn 48124 president 600/5,000 locomotive, historic re-enactments, entertainment, tours, curators, 1. (313) 982-6001; www.thehenryford.org audiovisual, fireworks, gardens and private courtyards with most venues, organic and local menus available Ford Field Tom Lewand 375,000 100,000 65,000 B/500 24 Caterer, stadium tours, on-field activities, attached parking structure 2. 2000 Brush St., Detroit 48226 president 1,200 C/3,500 D (313) 262-2260; www.fordfield.com Emagine Novi Paul Glantz 350,000 NA 475/475 18 Movie theaters that have 10-18 screens with seating from 100-475, 3. 44425 W. 12 Mile Road, Novi 48377 founder and chairman 250/600 spacious lobbies for strolling dinners and cocktail parties (248) 468-2990; www.emagine-entertainment.com Emagine Canton Paul Glantz 350,000 NA 475/475 18 Movie theaters that have 10-18 screens with seating from 100-475, 3. 39535 Ford Road, Canton 48187 founder and chairman 250/600 spacious lobbies for strolling dinners and cocktail parties (734) 721-3456; www.emagine-entertainment.com Suburban Collection Showplace Blair Bowman 320,000 215,000 12,000/6,000 23 25,000 square feet of pre-function space, 18-foot ceilings, wireless 5. 46100 Grand River Ave., Novi 48374 owner 6,000/6,000 Internet access, more than 2,500 parking spaces (248) 348-5600; www.suburbancollectionshowplace.com The Masonic of Detroit Roger Sobran 200,000 19,500 4,404/650 35 Space for corporate functions with two theaters, ample break-out 6. 500 Temple St., Detroit 48201 president 1,144/1,144 rooms, two ballrooms, full-service catering, audiovisual capabilities and (313) 832-7100; www.themasonic.com valet or self-parking options Cobo Center Thom Connors 175,000 27,000 2,880/1,800 70 Free Wi-Fi, 2,200 on-site parking spots, concierge and business center, 7. 1 Washington Blvd., Detroit 48226 general manager 1,800/2,200 on-site catering, contractors on-site to provide services to meetings and (313) 877-8777; www.cobocenter.com trade shows Fox Theatre Tom Wilson 125,000 5,000 4,800/NA 1 Historic venue in the heart of Foxtown. Restored to its original splendor. 2211 Woodward Ave., Detroit 48201 president and CEO 700/1,000 Fox Grand Lobby offers dinner and cocktail reception space, and multi- 8. (313) 471-3333; www.OlympiaEntertainment.com levels can be used for strolling events. Stage and theater can accommodate close to 5,000 guests for private meetings and events Detroit Marriott Renaissance Center Ulrich Franzmann 100,000 25,801 2,100/1,200 35 Restaurant, room service, sauna/steam room, wheelchair access, 9. 400 Renaissance Drive, Detroit 48243 hotel manager 1,800/2,200 Internet access, dinner, lunch, full breakfast, valet parking, fitness (313) 568-8000; www.detroitmarriott.com center, new lobby, concierge lounge Star Lanes at Emagine Royal Oak Paul Glantz 80,000 NA 350/350 14 Two private party areas; one that can seat up to 250 and another for a 10. 200 N. Main St, Royal Oak 48307 founder and chairman 250/700 party of 50-60 people. All areas combined (including restaurant area) (248) 414-1000; www.emagine-entertainment.com can host up to 600 people on two levels

This list of meeting facilities is an approximate compilation of the largest such facilities in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Information is provided by the venue unless otherwise noted. It is not a complete listing but the most comprehensive available. NA = not available. B Using the stadium seating. C Up to 5,000 on the field. ■ An expanded version of this list can be purchased at crainsdetroit.com/lists. D Up to 7,500 on the field. LIST RESEARCHED BY BRIANNA REILLY Get in on the conversation You Deserve Unbiased Tenant Representation The Business of Being Nonproﬁ t

“They may not be set up to make Real Estate Strategy a proﬁt, but there’s still business strategy behind their operations.” Tenant Representation — A blog with insights and news on the nonproﬁts and philanthro- Buyer Representation pists supporting Metro Detroit written by Sherri Welch. Project Feasibility Whether leasing, buying or building, users of space have the Construction Oversight upper hand in today’s real estate market. Let our experienced Get there at Incentives team of real estate professionals uncover every option. crainsdetroit.com/blogs Lease Administration Follow me on Twitter @sherriwelch pmcresa.com 248.223.3500 20120206-NEWS--0017-NAT-CCI-CD_-- 2/3/2012 10:43 AM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: TOP-PAID PROFESSIONAL ATHLETES Prince Fielder will have his Ranked by salary as of current or most complete season day on the top-paid list The missing salary from this list is Prince Name, age (as of January 2011) Contract length Rank Fielder’s eye-popping nine-year, Team Salary Position Contract terms (years) Contract year range $214 million deal to play first base (and hit 1. Miguel Cabrera, 28 Detroit Tigers $20,000,000 first baseman $152,300,000 8 2008-2015 a lot of home runs) for the Detroit Tigers. That’s because this list is for the most 2. Carlos Guillen, 36 Detroit Tigers 13,000,000 second baseman 48,000,000 4 2008-2011 recently completed season, or current ongoing season. 3. Justin Verlander, 28 Detroit Tigers 12,850,000 starting pitcher 80,000,000 5 2010-2014 So Fielder’s gargantuan payday won’t 4. Victor Martinez, 33 Detroit Tigers 12,000,000 designated hitter 50,000,000 4 2011-2014 appear until 2013. Fielder, 27, will be paid $23 million in both 2012 and 2013 Detroit Pistons 11,600,000 guard 55,000,000 6 2009-2014 5. Ben Gordon, 28 and then $24 million in each of the final 6. Magglio Ordoñez, 37 Detroit Tigers 10,000,000 outfielder 10,000,000 1 2011 seven years of the contract. Athletes still on the list, but not on the 7. Matthew Stafford, 23 Detroit Lions 9,000,000 quarterback 72,000,000 6 2009-2014 Tigers: Magglio Ordoñez, who is a free agent, and the injury-plagued Carlos 8. Calvin Johnson, 26 Detroit Lions 8,800,000 wide receiver 55,500,000 6 2007-2012 Guillen, who has signed a minor-league 9. Rodney Stuckey, 25 Detroit Pistons 8,500,000 guard 25,500,000 4 2011-2014 contract with the Seattle Mariners. Injured Victor Martinez is out for the season. Detroit Red Wings 7,750,000 forward 73,000,000 13 2009-2021 10. Henrick Zetterberg, 31 Also likely to shake up the list next 11. Charlie Villanueva, 27 Detroit Pistons 7,540,000 forward 35,000,000 6 2009-2014 year is Calvin Johnson. The Detroit Lions wide receiver turned in a monster season Jose Valverde, 33 Detroit Tigers 7,000,000 relief pitcher 14,000,000 2 2010-2011 in 2011 and will get rewarded for it. 12. (with 2012 option) Johnson, 26, inked a six-year, 13. Pavel Datsyuk, 33 Detroit Red Wings 6,700,000 forward 46,900,000 8 2007-2014 $55.5 million contract with Detroit after the Lions made him the No. 2 draft pick 14. , 41 Detroit Red Wings 6,200,000 defenseman 6,200,000 2 2011-2012 Nicklas Lidstrom out of Georgia Tech in 2007. Slightly 14. Tayshaun Prince, 31 Detroit Pistons 6,200,000 forward 28,000,000 5 2011-2015 more than $27 million is guaranteed. This season, he was paid an $8.8 16. Joaquin Benoit, 34 Detroit Tigers 5,500,000 relief pitcher 16,500,000 3 2011-2013 million base salary along with a $2.3 million bonus and $1.4 million in other 16. Brandon Inge, 34 Detroit Tigers 5,500,000 third baseman 11,500,000 2 2011-2012 (with 2013 option) compensation. 18. Jeff Backus, 34 Detroit Lions 5,450,000 left tackle 38,000,000 6 2006-2011 Next year is the final year of his contract — he’ll get $14 million in base salary and 19. Jhonny Peralta, 29 Detroit Tigers 5,250,000 shortstop 11,250,000 2 2011-2012 $3.7 million in bonus/other money — (with 2013 option) before becoming a free agent in 2013. 19. John Franzen, 32 Detroit Red Wings 5,250,000 forward 43,500,000 12 2009-2020 The Lions are expected to try to sign him to a new deal or extension that This list of top-paid professional athletes is an approximate compilation of the highest paid athletes in Wayne, Oakland, Macomb, Livingston or Washtenaw counties. Information is gathered from keeps him in Detroit and pays him as one Capgeek.com, Shamsports.com, Spotrac.com, Baseball Prospectus/Cot’s Baseball Contracts. It is not a complete listing but the most comprehensive available. Actual revenue figures may vary. NA = of the league’s top receivers, probably not available. around Larry Fitzgerald’s eight-year, $120 LIST RESEARCHED BY BILL SHEA million with the Arizona Cardinals. — Bill Shea

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Page 18 CRAIN’S DETROIT BUSINESS February 6, 2012

BUSINESS DIARY ACQUISITIONS a definitive agreement to sell its sub- CONTRACTS the human therapeutics division of In- transmissions the preferred and ex- sidiary, Harvel Plastics Inc., Easton, trexon Corp., Germantown, Md., a syn- clusive transmission for all current BorgWarner Inc., Auburn Hills, an au- Magnetic Products Inc., Highland thetic biology company that uses its and future Hino conventional trucks tomotive supplier, has agreed to sell Pa. to Georg Fischer AG, Township, entered into an agreement proprietary technologies to provide in the United States. its tire pressure monitoring business Schaffhausen, Switzerland. with Tectronix Systems Inc., Vancou- control over cellular function, formed Hella Lighting Corp., Plymouth, was to Huf Electronics GmbH, Dusseldorf, Flagstar Bancorp, Troy, the holding ver, British Columbia, to build, mar- a global exclusive-channel collabora- chosen by Volkswagen AG, Wolfsburg, Germany. company for Flagstar Bank, an- ket and sell metal detectors for the tion through which Adeona intends to Germany, to supply lighting for the nounced the completion of the sale of forestry industry. Visteon Corp., Van Buren Township, develop and commercialize a DNA- 2012 Volkswagen Beetle. announced it reached a nonbinding its 22-branch Indiana retail bank fran- The U.S. Tacom Lifecycle Manage- based therapeutic using Intrexon’s Ul- chise to First Financial Bank N.A., a Diversified Restaurant Holdings Inc., deal to sell the majority of its global ment Command, Warren, has awarded traVector platform and RheoSwitch Southfield, signed a franchisee agree- wholly owned subsidiary of First Fi- interiors business to Yanfeng Visteon General Dynamics Land Systems, a Therapeutic System for the treatment ment for Bill Zellmer and Lonnie Grig- nancial Bancorp, Cincinnati, Ohio. Automotive Trim Systems Co., a Chi- business unit of General Dynamics, of pulmonary arterial hypertension. gs to open a Bagger Dave’s in Cape Gi- nese joint venture of Visteon and Magna International Inc., Troy, an- Sterling Heights, a $395 million con- Qualitech, Bingham Farms, a technol- rardeau, Mo. Huayu Automotive Systems Co. tract for work under the Egyptian nounced that its subsidiary, Cosma In- ogy integrator and software reseller, MWW Automotive Group, Howell, a tank co-production program. Ultimation Inc., Roseville, a machin- ternational, Brampton, Ontario, Cana- was selected by Mode Development global design, engineering and manu- ery and equipment supplier, has been da, has closed a transaction with Landry & Newman Architecture PC, Inc., Sterling Heights, a property man- facturing firm, has been selected as a acquired by Jacqueline Canny who ThyssenKrupp Automotive Systems Birmingham, was chosen by Trinity agement and development company, key supplier for the production and also takes over as CEO of the compa- GmbH, Essen, Germany, to acquire Health as the architect for its new cor- to upgrade its computer network. delivery of three key Mazda MX-5 ny. Ultimation’s name has changed to ThyssenKrupp Automotive Systems In- porate headquarters in Livonia. Hino Trucks, Novi, and Allison Trans- parts to Mazda North America, Irvine, Ultimation Industries LLC. dustrial Do Brasil Ltda., São Bernardo Adeona Pharmaceuticals Inc., Ann mission Inc., Indianapolis, Ind., signed Calif. Detrex Corp., Southfield, entered into do Campo, Brazil. Arbor, a developer of medicines, and an agreement that will make Allison Amerigon Inc., Northville, a global developer and marketer of thermal management technologies, was chosen by Kia Motors, Seoul, South Korea, to provide its proprietary heated and ventilated seat system to be offered as a front-seat option in the midsize Kia Optima being sold in China. MacKellar Associates Inc., Rochester Hills, signed an agreement with Hoosier Molded Products Inc., South Bend, Ind., to represent Hoosier in the Our names have changed. Midwest for custom injection-molding technologies. Oasis Consumer Healthcare LLC., Our commitment hasn’t. Cleveland, Ohio, a manufacturer of over-the-counter medicines, has selected W.B. Doner & Co., Southfield, as its agency of record. ImageSoft Inc., Southfield, was chosen by Ottawa County, Mich., to provide TrueFiling, a unified e-filing ser- POH Regional Medical Center is now Mount Clemens Regional Medical Center is now vice for all the county’s courts. Technical Writing Solutions LLC, Rochester Hills, was selected by Mit- subishi Motors R&D of America Inc., Ann Arbor, to provide a technical writing training session for the technical staff at its Ann Arbor engineering facility, and locations in Cyprus, Calif., and outside Washington D.C. EXPANSIONS Hella Lighting Corp., Plymouth, plans to open a product development center and expand its manufacturing facilities in Guadalajara, Mexico. Website: www.hella.com. > Oakland County’s first verified level II trauma center > Macomb County’s only verified trauma center Chipotle Mexican Grill Inc., Denver, > Minimally invasive robotic surgery > Leading-edge cardiovascular care Colo., opened a new location at 84 N. Adams Road, space A84, Rochester > State-of-the-art surgery center > World-class cancer care Hills. Telephone: (248) 402-0047. Web- site: www.chipotle.com. > Comprehensive orthopedic services > Accredited chest pain center MOVES > Advanced cancer and cardiovascular care > State-of-the-art robotic surgery Malace & Associates Inc., from 2180 Livernois Road to 5700 Crooks Road, Suite 112, Troy. Telephone: (248) 720- 2500. Website: www.malacehr.com. The Accounting Office Inc., a small- business accounting firm, moved from 186 E. Main St., Suite 200, to 175 Cadycentre, Suite 300, Northville. Telephone: (248) 449-9600. Website: www.accountingofficeinc.com. TheraMatrix Physical Therapy moved from 22133 Gratiot Ave. to 23411 Gra- tiot Ave., Eastpointe. Telephone: (586) Our new names reflect our bond with one of Michigan’s largest health 776-0080. Website: www. theramatrix.com. care systems—McLaren Health Care. Now, more than ever, you can count on us for the same exceptional health care services, as well as the same NEW PRODUCTS Federal-Mogul Corp., Southfield, in- commitment to building healthier individuals and stronger communities. troduced NovaLens, a next-generation lamp for vehicle interior lighting. Website: www.federalmogul.com. DIARY GUIDELINES Send news releases for Business Diary to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or send e-mail to cdbdepartments@ crain.com. Use any Business Diary 50 N. Perry St., Pontiac, MI 48342 | (248) 338 5000 | mclaren.org/oakland item as a model for your release, and look for the appropriate 1000 Harrington Blvd., Mount Clemens, MI 48043 | (586) 493 8000 | mclaren.org/macomb category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 20120206-NEWS--0019-NAT-CCI-CD_-- 2/3/2012 10:47 AM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 19 Job Front PEOPLE CONSTRUCTION Andrew Foerg to IN THE SPOTLIGHT senior project Detroit-based DMC Children’s manager, PM En- Hospital of Michigan has promoted vironmental Inc., Chad Grant to Berkley, from se- COO. nior project manager, The Mannik Grant, 37, had & Smith Group been vice Inc., Canton president of Township. DMC’s Cardiovascular HEALTH CARE Institute and of Foerg cardiology Nancy Kay Graeb- services. He ner to president started at DMC and CEO, Chelsea in 1995 as a Grant Possible is everything. Community Hospi- nuclear tal, Chelsea, from medicine technologist. Today, more than ever, global competition and corporate streamlining require innovative executive vice president of Grant replaces Shawn Levitt, who thinking and leadership abilities. Continuing your education can be key to ensuring your success. From global recently was named senior vice physician strate- leadership to health information technology management, Lawrence Technological University offers innovative president and chief nursing officer. gy and services, business degrees and fast-track certificate programs to prepare you for the jobs of the future. Bon Secours St. Grant, a member of the Crain’s Francis Health Detroit Business 40 under 40 012 012 012 class of 2011, earned a Explore over 100 undergraduate, master’s, and doctoral 2 2 2 System Inc., AMERICA’S BEST BEST COLLEGES MILITARY Graebner Greenville, S.C. bachelor’s degree in science from programs in Colleges of Architecture and Design, UNIVERSITIES in the Midwest FRIENDLY Arts and Sciences, Engineering, and Management. U.S. News & Princeton SCHOOL Siena Heights University in Adrian World Report® Review® G.I. Jobs® INFORMATION TECHNOLOGY and a master’s degree in health services administration from Meri Glade to chief compliance officer Central Michigan University. Waive your application fee at www.LTU.edu/applyfree and general counsel, FordDirect, Dear- born, from general counsel, Pacific DMC Children’s Hospital of Ventures Law Group, San Francisco, Michigan is one of eight hospitals Calif. Also, Ryan operated by the Detroit Medical Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 Soffa to senior Center. 800.225.5588 | [email protected] | www.LTU.edu vice president of product develop- MARKETING ment, from vice Liza Mondro to president of prod- manager of client uct development; services, RBD Cre- and Fadi Aoude to ative LLC, Detroit, senior vice presi- from production dent of technolo- manager, Four- gy, from vice president of tech- Sight Creative Soffa nology. Group, Plymouth. LAW SERVICES Stanford Berenbaum to vice president Colin Bruley to ac- Mondro and general counsel, Ilitch Holdings count manager, Inc., Detroit, from CEO, Water Intelli- Rapid Global Business Solutions Inc., gence PLC, Palm Springs, Calif. Madison Heights, from account repre- sentative. Also, Sri Potluri to informa- Just Getting LAST Week’s News? MANUFACTURING tion-technology staffing manager, from senior information-technology John Daugherty to Midwest/eastern zone manager for global product sales, recruiter. Jervis B. Webb Co., Farmington Hills, Bruce Campbell to executive director, from contract worker, Ford Motor Co., Miss Dig System Inc., Auburn Hills, Chicago. from president, Conex Inc., Flint. Get Your

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Page 20 CRAIN’S DETROIT BUSINESS February 6, 2012 NINE EXCITING INNINGS NINE EXCITING REASONS TO ORDER CALENDAR 2012 TIGERS SEASON TICKETS site: www.detroitchamber.com. tact: (248) 644-1700, ext. 24; email: SALUTE 2011 NEWSMAKERS [email protected]; website: www. Justin Verlander – AL MVP and 2011 Cy Young bbcc.com. Join Crain’s Is Nonprofit Experience a Fast Lane or Detroit Detour? 5:30-8 p.m. Inforum Center for Startup Weekend Detroit 4. 6-11 p.m. Business in Leadership. With Kathy Oswald, senior Feb. 17; 9 a.m-11 p.m. Feb. 18; 9 a.m.-9 Miguel Cabrera – 2011 Batting Champ saluting its vice president and chief human resources officer, Henry Ford Health Sys- p.m. Feb. 19. Detroit Venture Partners, 2011 Google, others. With Jason Raznick, edi- tem; others. Henry Ford Health System Newsmakers of tor and co-founder, Benzinga, others. the Year 11:30 Allan D. Gilmour Center for Learning, Jose Valverde – 49/49 Saves Madison Theatre Building, Detroit. $99, a.m.-2 p.m. Detroit. $55 Inforum members, $70 non- students $50. Contact: (586) 876-2688; Feb. 23 at the members. Contact: (877) 633-3500; web- email: [email protected]; web- Westin Book site: www.inforummichigan.org. site: www.detroit.startupweekend.org. Alex Avila – 2011 Silver Slugger Cadillac in Detroit. Chehab Detroit Economic Club. 9-11 a.m. Feb. Saad Chehab, 23. With Bruce Katz, vice president and CEO of COMING EVENTS director, Metropolitan Policy Plan, The Delmon Young – 5 Postseason Home Runs Chrysler/ Twitter for Business (Beginner). 6-9 p.m. Brookings Institution; Jim Nicholson, Lancia brands Feb. 15. Michigan Small Business & president and CEO, PVS Chemicals for Chrysler Technology Development Center, oth- Inc.; and Doug Rothwell, president and Group LLC, and ers. Salina Washington, president and CEO, Business Leaders for Michigan. Jhonny Peralta – 2011 All-Star Sue Mosey, CEO, Miyan Media. Intermediate class $45 DEC members, $55 guests of mem- president of Feb. 22; advanced class Feb. 29. Oak- bers, $75 nonmembers. Contact: (313) Midtown land County Business Center, Water- 963-8547; email: [email protected]; Detroit Inc., ford Township. $40. Contact: (248) 858- Doug Fister – 8-1 • 1.79 ERA website: www.econclub.org. will be honored 0783; email: [email protected]; at the website: www.oakgov.com. The Business of Networking. 7:30- Mosey luncheon for 10:30 a.m. Feb. 29. Inforum. With Jen- their achievements. Birmingham Bloomfield Chamber Gov- nifer Maxson, practice group leader, Tickets range from $60 to $85. ernment Forecast. 7:30-9:30 a.m. Feb. 17. coach and consultant, Varnum Con- For more information and to Clark Hill, others. With Gov. Rick Sny- sulting. Rehmann, Troy. $50 Inforum register, visit der. The Townsend Hotel, Birmingham. members, $75 nonmembers. Contact: Prince Fielder – 3-Time All-Star & 2-Time Silver Slugger www.crainsdetroit.com/events. $40 members in advance, $50 nonmem- (877) 633-3500; website: www.inforum Rehmann LLC is the title sponsor. bers, $290 corporate table of eight. Con- michigan.org. WEDNESDAY 2012 SEASON TICKETS ON SALE NOW AS LOW AS $220 FEB. 8 Corporate Responsibility Summit Outstanding benefits include: Entrepreneur-you. 8 a.m.-3 p.m. Walsh • Opening Day tickets • Postseason ticket priority • Free food vouchers College, Michigan Women’s Founda- tion, Inforum, Huntington Bank, oth- • Discounted parking • And more ers. For women with a passion for en- 313-471-BALL (2255) trepreneurship. With Wendy Achatz, The AIAG Corporate Responsibility Summit owner and founder, Achatz Hand- brings together leading automotive executives, Benefits apply to select packages made Pie Co.; others. Walsh College, Troy. $25, $15 for Walsh students. Con- policy makers, and decision-makers to examine tact: (248) 823-1392; email: vital information on the issues we face today, [email protected]; website: tomorrow and beyond. www.thewalshinstitute.com/eyou. Topics range from conflict minerals to THURSDAY environmental and water sustainability, the connection between communications and FEB. 9 corporate responsibility, and global working Talent Townhall. 11:30 a.m.-1:30 p.m. conditions to ethical business practices. Auburn Hills Chamber of Commerce, Baker College, others. With Amy Cell, senior vice president of talent en- Today, hancement and workforce develop- Tomorrow Tuesday & Wednesday, March 6 - 7 ment, Michigan Economic Develop- MSU Management Education Center ment Corp.; others. Crowne Plaza, and Beyond 811 W. Square Lake Road | Troy, MI 48098 Auburn Hills. $32 chamber members and guests, $40 nonmembers. Contact: (248) 853-7862; email: rjay@auburn hillschamber.com; website: www. Reserve Your Seat Today auburnhillschamber.com. Register by calling 248.358.3003 The Catalyst for Peak Performance™ or online at www.aiag.org FRIDAY FEB. 10 Workplace Diversity Forum - Women in Leadership Summit. 10:30 a.m.-3 p.m. Oakland County Employment Diversi- ty Council, Michigan Works! Oakland. With Michigan Secretary of State Ruth Johnson, Helaine Zack, Oakland County Commissioner, District 22 and employee assistance manager, Beaumont Health System; Debra Ehrmann, chair- person, Oakland Coalition of Hispanic Service Agencies; Nipa Shah, president, Jenesys Group LLC; and Dr. Soraya Orady, president and founder, the Islam- ic Education and Resources Network ILearn. Auburn Hills Marriott Pontiac at Centerpoint, Pontiac. $50. Contact: (248) 796-4566; email: [email protected]; website: www.ocedc.net.

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February 6, 2012 CRAIN’S DETROIT BUSINESS Page 21 Suppliers: Probe costs trickle down REAL ESTATE ■ From Page 3 comment on this story. New York- INDUSTRIAL PROPERTY OFFICE SPACE based Morgan Stanley Research PRIME OFFICE SPACE speculated that at least 80 suppli- Warehouse Space Available ers are involved in the current in- Price-fixing fines fill up Dearborn Livonia - 8,000 sq. ft. for lease,1st floor of free standing building with private parking vestigations. Bill Kowalski, direc- 93,000 sq. ft. Warehouse tor of investigations for Rehmann lot and easy freeway access. 2nd floor 12 Truck Wells occupied by CPA firm. Available now. LLC’s Troy office for former FBI agent specializing in white-collar federal crime victim fund Call (313) 506-0534 Call 734-427-2030 or [email protected] crime, said lower-tiered suppliers have already been dragged into an BY CHAD HALCOM capped at $705 million in annual AVAILABLE NOW WAREHOUSE STORAGE SPACE expensive distraction due to exist- CRAIN’S DETROIT BUSINESS distributions since fiscal 2010. De- ing business with the larger sup- Taylor/Romulus Area — 4,000 to 80,000 sq. ft. posits were just under $1.75 billion Wyoming, MI 96 units pliers under investigation. The U.S. Department of Justice in fiscal 2009, the most recent year Ideal for logistics company, 100% occupancy “The legal cost of compliance crackdown on Southeast Michi- for which records were immediate- manufacturing or warehousing. 10% cap based on financials Asking $2.4m with the DOJ is the document re- gan auto suppliers alleging price ly available, compared with Yvon Rea 734-946-8730 tention,” he said. “There are lower fixing over much of the last $896 million in 2008. Call Income Property Org. level suppliers that have to save decade could singlehandedly put Compensation allocations out 248-932-0300 every communication — memo, a special federal program to bene- of the fund are for state programs email, text, etc. — which is a very fit crime victims in the black for that assist victims and survivors expensive duty.” MARKET Call Us For Personalized most of the current one. of crime, including medical and Service: (313) 446-6068 Gillette said suppliers should Tokyo-based Yazaki Corp., which funeral expenses, mental health take a number of steps. They should bases its U.S. subsidiary Yazaki counseling, loss of wages or other PLACE CLOSING TIMES: Monday 3 p.m., engage legal counsel to determine North America in Canton Township, expenses. Assistance allocations one week prior to publication date. rules; develop a training program and Kariya, Japan-based Denso from the fund are for state pro- Please call us for holiday closing times. for employees with potential con- Corp., which houses its Denso Inter- grams that offer services to crime ANNOUNCEMENTS & FAX: (313) 446-1757 tact with customers or competitors national America Inc. subsidiary in victims, which can include trans- SERVICES E-MAIL: [email protected] — including engineering, purchas- Southfield, have agreed to pay portation to court, short-term INTERNET: DELIVERY SERVICES www.crainsdetroit.com/section/classifieds ing and executive staff; and conduct $470 million and $78 million respec- child care services, temporary Confidential Reply Boxes Available role-playing exercises and testing to tively for their alleged roles when housing and training for law en- ensure employees understand the Local Trucking/Warehousing they enter guilty pleas in court un- forcement personnel that provide 1 Pallet - Truck Loads PAYMENT: All classified ads must be do’s and don’ts of communicating “Where You Get Your Buck$ Worth” Same Day - Next Day prepaid. Checks, money order or der an agreement with the Justice victim assistance. Crain’s credit approval accepted. with customers and competitors. Canadian Consolidations Department’s antitrust division. Grants from the allocation are Credit cards accepted. “When employees are training, Storage Trailers Taken together with a $200 mil- applied for and administered Trailer Parking they aren’t generating revenue, www.mrtransportation.com See lion fine under the November through designated state agencies. but this is absolutely necessary,” [email protected] Crainsdetroit.com/Section/Classifieds guilty plea of Furukawa Electric Co. In Michigan, that’s the Michigan De- 734-946-7031 for more classified advertisements he said. Ltd., which has its American Fu- partment of Community Health. Mel Stephens, vice president of rukawa Inc. subsidiary headquar- Besides compensation and assis- communications for Lear Corp., said ters in Plymouth, the auto suppli- tance grants, the fund can also communications over the issue ers will more than fund the entire make additional discretionary allo- have picked up, but no new compli- JOB FRONT budget this fiscal year of the fed- cations to Native American tribes ance training has been conducted eral Crime Victims Fund. or to an antiterrorism emergency at its Southfield headquarters and The fund, established in 1984 to reserve to benefit victims of the 9- TECHNICAL MANUFACTURING the supplier has not revealed addi- fund state, federal and tribal pro- 11 terror attacks, but these are sub- tional legal costs to the U.S. Securi- grams such as victim-witness co- ject to caps and annual limitations. Network Consulting Engineer Seeking National Sales Person ties and Exchange Commission. ordinators, counseling services, Special engineered workholding company based in Lear is currently under an- Fines imposed or expected to be Cisco Systems, Inc. is accepting resumes the Federal Victim Notification imposed by antitrust prosecu- for the following positions in Southfield, MI: Oakland County seeking national sales person. Must titrust investigation by the Euro- have strong mechanical engineering background, be System and programs to improve tions this year total $886 million Network Consulting Engineer (Ref#: pean Commission. Stephens main- SOU1): Responsible for the support and highly self motivated, strong closer. tains that Lear has not investigations into child abuse after the Yazaki and Denso fines delivery of Advanced Services to company’s Excellent earning potential, company car, medical participated in any illegal activity. and neglect, collects the funds — including $791.2 million from major accounts. and dental benefits. from antitrust division prosecu- automotive supplier and after- Sheldon Stone, partner at Birm- Please mail resumes with reference Please send resumes to [email protected]. tions in federal courts. market cases. That’s compared number to Cisco Systems, Inc., Attn: ingham-based advisory firm Seeking Plant Manager Amherst Partners LLC, told Crain’s It also derives revenue from for- with $379 million total fines in fis- J51W, 170 W. Tasman Drive, Mail Stop: SJC 5/1/4, San Jose, CA 95134. No last October that the downturn feited bail bonds, penalties on “col- cal 2011, when the obligation cap Must be very responsible and highly motivated. CNC phone calls please. Must be legally boring MILL operator. Minimum 10 years experience, caused a sharp increase in fraud lateral profits” of crime, special as- was also $705 million. authorized to work in the U.S. without sessments collected through local But Justice Department offi- strong programming ability, powerful leader. Must be and most times it involved private- sponsorship. EOE. experienced in lean manufacturing and quoting U.S. Attorneys’ offices and federal cials said last week that not all ly held suppliers without proper www.cisco.com machining opportunities. Must assist in planning and compliance programs in place. district courts plus the Federal Bu- fines imposed are collected in the processing complex parts. Excellent earning poten- Under the DOJ’s corporate sen- reau of Prisons, and some private same fiscal year or in one lump tial, medical and dental benefits. tencing guidelines established in gifts and bequests from nonprofits. sum, depending on the arrange- Crain’s Classifieds Gets Results Please send resumes to [email protected]. the 1990s, a company adhering to Michigan had a 2011 federal al- ments individual companies an “effective corporate compliance location of just under $13.2 million reach with the government. program” is eligible to receive le- out of the $428.1 million in total as- Last week J.P. Morgan North Amer- POSITIONS AVAILABLE niency in cases such as this, said a sistance allocations to states from ican Equity Research forecast that Southeast Michigan lawyer close the Crime Victims Fund, accord- the prosecutions would likely in- to the case, who spoke to Crain’s ing to Justice Department data. crease over the coming months on the condition of anonymity. That’s about commensurate and the as-yet-uncharged Autoliv “(An effective compliance pro- with its 3.1 percent share of the Inc. and Livonia-based TRW Automo- gram) doesn’t necessarily mean it U.S. population in 2010. But the tive Holdings Corp. could ultimately OPEN POSITIONS ARE will prevent or even detect every state only received $1.1 million in pay fines of $700 million and $400 violation, but the fact that you’re compensation payments from the million respectively. talking to employees and have an fund, out of $180.9 million in total Stockholm-based Autoliv has effective program will reduce your payments — less than one-fourth its North American headquarters sentence,” he said. its proportional share. in Auburn Hills. Adding complexity to the issue While revenue can vary widely Chad Halcom: (313) 446-6796, FREE TO POST is overseas expansion led by au- with federal prosecutions from [email protected]. Twitter: tomakers’ new expectation of glob- year to year, the fund has been @chadhalcom al suppliers, Kowalski said. Anti- trust rules are different in every ness ethics policies to provide to and asked to remain unnamed. country, and companies focused their employees, said Mark Aiello, “Certain suppliers are probably on expansion need to recognize in- partner and co-chairman of the reading this right now, saying, ternational legal issues. law firm’s auto practice. ‘I’m little, they won’t come after “You can’t get a meeting with an “As these cases are becoming me’ or ‘we don’t have direct con- individual in certain countries in more publicized, we’re seeing a lot tact with competitors,’ ” he said. Europe without paying,” he said. of outreach down the supply chain “This is a big industry in a small “But you’ve got to make sure what and we’re communicating with a town, and if you don’t think your you’re doing doesn’t constitute a lot of suppliers’ marketing and people are running into each other bribe or break national or interna- sales departments,” he said. and talking business, you’re com- |JOB FRONT tional law.” The misconception of small sup- pletely fooling yourself.” Foley & Lardner LLP in Detroit has pliers saying “it can’t happen to Dustin Walsh: (313) 446-6042, crainsdetroit.com/jobfront seen a sharp increase in suppliers me” is over, said a source who is [email protected]. Twitter: seeking code of conduct and busi- close to the current investigations @dustinpwalsh 20120206-NEWS--0022-NAT-CCI-CD_-- 2/3/2012 4:49 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS February 6, 2012 Science center: Making progress ■ From Page 3 shop LLC, which did business as De- troit Design & Exhibits and Detroit Science Center Design & Exhibits. That’s a strategy that was sug- Report raised red flags gested to the center by local turnaround firm Hydra Professionals LLC a year before the science center’s closure for lack of operating cash. a year before closing Business on Need growth capital? When businesses (See accompanying story.) face the up-and-down demands of The subsidiary and one of the BY SHERRI WELCH the rise? growth, purchasing goods, or even to make first exhibits it created, “Acciden- CRAIN’S DETROIT BUSINESS payroll, Crestmark’s service and tal Mummies of Guanajuato,” are We offered the innovative solutions can be the answer. blamed for draining cash from the A report issued by a local turn- “ science center’s core operations, around firm a year before the De- management and Providing accounts receivable financing and which compounded other cash troit Science Center’s closure ad- asset-based lending to small- and mid-sized flow issues, ultimately leading to vised, among other things, that board a plan ... but businesses nationwide for over 15 years. its closure last September and the the center cut its ties with its layoff of about 130 employees. mummies exhibit and its for-prof- unfortunately, it Call me today for more information. The science center can now it exhibit-building subsidiary to “candidly tell you what happened help stem cash flow issues. fell on deaf ears. and the plan they have going for- But the science center elected ” Scott Frederick ward,” one source said. Two things to continue to operate the sub- Keith Francis, Hydra Professionals LLC 248.267.1630 | [email protected] led the science center to its current sidiary until it shut down late troubles: over-investment in the last September. pected to be another blockbuster, subsidiary, which didn’t generate And it sent its “Accidental fell far short of attendance projec- the revenue former management Mummies of Guanajuato” exhibit tions, leaving the science center had hoped it would, and poor inter- to Dallas from late May through with $1.2 million in unrecovered nal financial accounting. early September of last year — af- costs, the report said. The science center’s new plan ter litigation around the exhibit And former CFO Robert Seed- calls for about $4 million to reopen was resolved — for what proved stadt left the science center in the museum alone and get it to be another unsuccessful show- May 2010, leaving it without fi- through this year. Future opera- ing with low attendance. nancial leadership for five tions would be bolstered by about “Detroit Science Center execu- months, the report found. $2.5 million in annual giving that tives reviewed the consulting re- “Implementing a strategy to typically comes to the museum port and adopted the appropriate expand the (center) into exhibit FULL SERVICE ASSEMBLY each year, sources say. next steps based on the informa- building and traveling exhibit The plan does not include re- tion available at the time, with the production without adequate TOOLING SYSTEMS opening the exhibit-building sub- intention of building a more vi- capital has proven unsuccess- sidiary. And it doesn’t include any able science center,” said Shelly ful,” the report said. funding for the Detroit Children’s Otenbaker, a trustee of the science Although there was potential Museum, which is largely funded center and senior vice president at for the subsidiary to break even CONTINGENT WORKFORCE with federal dollars and, as of last Eisbrenner Public Relations in Royal or to generate cash to subsidize week, is no longer the science cen- Oak, in an email. the operations of the science cen- SERVICES ter’s responsibility. “As these actions were imple- ter, as planned, “this has not yet Detroit Public Schools, which mented, a number of unforeseen been proven as project expenses owns the children’s museum, last circumstances took place that have been in excess of project week ended the 10-year operating played a part in reaching the De- donor funding source for the ma- agreement it entered with the De- troit Science Center’s current sit- jority of projects,” the report said. troit Science Center in 2010. uation.” The report made recommenda- 29401 Stephenson Highway Private foundations are closely The center’s management and tions for how the science center Madison Heights, MI 48071 watching the situation to deter- board needed to take immediate might extricate itself from the le- mine if they should offer the sci- actions to address a $1 million gal issues that embroiled the 248 548 6010 ence center new operating sup- cash burn in the ensuing 90 days mummies exhibit in 2010, forcing www.gonzalez-group.com port. from the Hydra report to insulate it into storage for about eight “The Science Center has stayed the science center from legal is- months. A company that con- in touch with the foundation com- sues stemming from the mummy trolled the U.S. rights to the exhib- AEROSPACE | DEFENSE | AUTOMOTIVE munity, providing us with updates exhibit and stop the cash drain of it filed a lawsuit that accused the about what is happening and try- the subsidiary, said Keith Francis, exhibit’s touring company of ing to gauge the interest and abili- managing director of Farmington falling far behind in payments. ty of the foundation community to Hills-based Hydra Professionals LLC, The case was settled in a confiden- consider some operating support which authored the report. tial agreement in January 2011. to help them reopen,” said Kate In addition to recommending The report also suggested an Markel, program director at the cutting ties with the mummies ex- orderly sale of the mummies ex- Detroit-based McGregor Fund. hibit and ending its subsidiary op- hibit. The science center did cut “I think there’s a lot of goodwill erations, Hydra advised the cen- ties with the exhibit last year, but Professional Jet Management toward the mission of the museum ter to look at ways to create more not until after it had sent the ex- and widespread recognition of the brand awareness to increase at- hibit to Texas. need to have the museum reopen.” tendance, work with secured and Bob Gardella, president of Can- McGregor is a longstanding sup- unsecured creditors and to find a ton Township-based Marcon Ex- porter of the science center, hav- “white knight investor,” he said. hibits & Events Inc., who invested ing made operating grants of about “We offered the management over $1 million in the exhibit and $100,000 on average each year, she and board a plan to accomplish served for a time on the Detroit said. this, but unfortunately, it fell on Science Center’s board of trustees, But the foundation is unable to deaf ears.” now owns the rights to the exhibit. consider a new operating grant un- Issued in early October 2010, Hydra also suggested, among til a 2009 grant of $300,000 that was the report found that the science other things: the science center spent on something other than its center was on solid financial foot- work with Citizens Bank to renego- Experience the difference. designated project is replaced, ing in 2007, following the success- tiate its debt, seek a naming rights matched and directed to fund the ful exhibition “Our Body: The sponsor for the center and possi- All inclusive management at an affordable ﬁ xed cost. upgrade of the science center’s Universe Within.” It had $1.7 mil- bly the Detroit Children’s Muse- planetarium to full-dome video, as lion in cash at the end of that year um, renegotiate vendor contracts, •Forming partnerships now initially designated, Markel said. and hadn’t yet tapped its $1 mil- cultivate more individual donors •Small, midsize and large cabin jets Still, McGregor feels “strongly lion line of credit. and develop a brand awareness that their mission continues to be But the center burned through campaign by asking corporations •Reduce your total operating cost very important to the community, both the cash and the credit line such as utilities and Citizens to •Maximize your aircraft efﬁ ciency and it’s critical they find a way to between 2008 and 2010 with the distribute promotional pieces for while enhancing your aircraft reopen and resume serving and ed- launch of its exhibit-building sub- the science center with their appearance, performance & value www.skywayavjets.comwww skywayavjets com ucating the public,” she said. sidiary and subsequent projects mailed bills and statements. Sherri Welch: (313) 446-1694, to build a number of exhibits. Sherri Welch: (313) 446-1694, Call today for more information, Geoff Sherman 1.248.568.0979 [email protected]. Twitter: To compound matters, the [email protected]. Twitter: @sherriwelch mummies exhibit, which was ex- @sherriwelch 20120206-NEWS--0023-NAT-CCI-CD_-- 2/3/2012 5:12 PM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 23 Blue Cross: Group program expands ShowShow Them Them What What ■ From Page 3 YouYou StandStand For For tors over the past four years, and membership. “We would welcome provider reimbursement from sub- they are very aware of this dis- them. I have never heard anything scriber premiums to fund its criminatory situation,” Dowell negative from other physician or- physician group incentive pro- BBB Accreditation is a commitment said. “We have not received any of ganizations at the PGIP meetings gram. Over the past five years, the assistance or direction from about their participation,” Ma- Blue Cross has paid more than $75 to fairness and honesty that lets Blue Cross that the medical com- tuszewski said. million in bonus payments to 40 munity has received in this “I am absolutely excited about physician organizations and thou- consumers know you are a business process.” the opportunity (to add psycholo- sands of physicians who are in David Share, M.D., Blue Cross gists) because there needs to be an PGIP and have improved quality they can trust - a business that senior associate medical director integration of primary and behav- and patient safety. honors its promises and embodies of quality, said several leaders of ioral health specialists. It needs to Dowell said that Blue Cross also physician organizations have ex- happen immediately for patient reduces chiropractors’ reimburse- confidence they deserve. pressed interest in adding psychol- care needs,” she said. ment to help pay the PGIP bonuses ogists and other newly incentive- One reason to add psychologists to other doctors. Your customers start with eligible providers. to the group incentive program is “The issue is quite clear, all chi- Last summer, Blue Cross invit- to improve communication with ropractors who treat Blue Cross bbb.org. ed all physician specialists to join. primary care physicians, who in- patients contribute to this (PGIP There are now about 8,100 medical creasingly are seeing and treating bonus pool) fund, but no chiro- Shouldn’t you? specialists who participate in the large numbers of patients with un- practor has ever been eligible to group incentive program, includ- complicated depression and anxi- take part in it. It really is taxation ing cardiologists, pulmonologists, ety, Share said. without representation,” Dowell endocrinologists, psychiatrists “One of our goals is to encour- said. and immunologists. age them to increase the collabora- While psychologists and other “We have a small number of tion and coordi- providers have had their rates re- (224) podiatrists and chiropractors nation between duced for various procedures over who have joined,” Share said. primary care, the last several years, Share said “PGIP is framed around the idea to psychiatry and the amount of money that Blue create common information sys- psychology to Cross uses for PGIP’s financial tems and care coordination have them work bonus payments to providers is processes.” less in silos and not the reason. Share acknowledged that podia- more together,” Share acknowledged that some ® trists, chiropractors and psycholo- Share said. office-visit reimbursement rates gists have not historically collabo- Over the next have been cut for psychologists, Start With Trust rated with allopathic and year, Share said but that has been tied to reduc- osteopathic physicians or joined Share Blue Cross will tions in the physician pay formula physician organizations. implement a number of behavioral under Medicare. In 2011, Share Better Business Bureau “This is new territory for them,” health initiatives to further pro- said the Blue Cross board decided Serving Eastern Michigan and the Upper Peninsula Share said. “PGIP offers opportu- mote care coordination. to no longer give providers across- Call 248-223-9400 to learn more nities to improve the systems to Rodger Prong, executive direc- the-board fee increases each year. collaborate and improve between tor of Waterford-based Oakland Until last year, providers received or go to bbb.org physicians.” Physicians Network Services, said about an average annual 1.5 per- Jeffery Frederick, a podiatrist the physician organization has ac- cent annual rate increase. and chairman of the insurance cepted podiatrists and recently re- Future reimbursement increas- committee with the Michigan Podi- ceived an application from a chiro- es will be tied to meeting various atric Medical Association, said podi- practor to join. performance, quality and adminis- atrists are supportive of Blue Of Oakland Physicians’ 425 pri- trative goals within PGIP, Share Cross efforts to reward providers mary care and specialty physi- said. for care coordination and improv- cians, some 350 physicians, includ- For example, Share said: “If you ing quality. ing 80 primary care physicians, are in PGIP, building a medical But Frederick said Blue Cross are part of the group incentive pro- home capability, and achieving hasn’t done a good job in providing gram. good results, you can get increases education about how podiatrists “We haven’t included psycholo- in office visit fees of 10 percent to can easily join physician organiza- gists” yet, Prong said. “We do have 20 percent. This fosters more atten- tions. in our bylaws the provisions to tion to relationship-based care.” “Even if I want to join, how do I take on ancillaries as associates by Last year, Post said a survey the do that? What are the steps neces- contract if needed for creation of psychology association conducted sary to be part of the program? complete care options.” found that Blue Cross cut psychol- Blue Cross needs to do more to let But the inclusion of psycholo- ogists’ rates 14.45 percent to 18.04 me know,” said Frederick, who gists into the group incentive pro- percent from 2008 to 2011. The cuts practices at Northpointe Foot and An- gram has raised a long-simmering varied depending on rural or ur- kle in Berkley. dispute the psychologists have ban practice location. Ewa Matuszewski, CEO of Med- with the Blues over payment rate “All insurers have been reduc- What IF your law firm ical Network One, a Rochester-based cuts, said Post. ing rates, but we focus on Blue physician organization, said Blue Psychologists believe that over Cross because it can amount to 40 provided Insight for the Cross’ inclusion of all specialty the past several years, reimburse- percent to 50 percent of insurance challenges at hand and physicians and other providers ment rate cuts that some have in- revenue,” Post said. will help PGIP and further im- curred are tied to Blue Cross’ deci- Post said the association will Foresight for the issues prove care coordination. sion to reduce the total amount of continue to meet with Blue Cross on the horizon? Matuszewski said the 700-physi- money available to providers to officials to discuss reimbursement cian organization has added sever- pay for PGIP bonus payments to issues and PGIP participation. al psychologists over the past sev- physician organizations, Post said. Jay Greene: (313) 446-0325, eral years, but no podiatrists or In 2011, Blue Cross earmarked [email protected]. Twitter: chiropractors have applied for 4.2 percent of total professional @jaybgreene Hear big ideas at Idea: Detroit conference

Crain’s second Idea: Detroit con- The event will be at the Fox The- Carl J. Grassi Stephen M. Gross ference, presented with Advertis- atre from 8 a.m. to 5 p.m. President Detroit Managing Member ing Age, is coming up March 7. Business leaders, entrepre- McDonald Hopkins PLC The event brings out provoca- neurs, advertising professionals 39533 Woodward Ave., Suite 318 tive thinking and workable busi- Inc.; and Erik Qualman, author of So- and social entrepreneurs are en- ness ideas on reinventing the city. cialnomics. couraged to attend. Registration Bloomfield Hills, MI 48304 • 248.646.5070 Keynote speakers are Mike Jbara, Other speakers include: The information can be found at crains- president and CEO of New York- Rev. Barry Randolph of the Church of detroit.com/events. The cost to at- based music label WEA Corp.; Rob the Messiah, Corktown investors tend is $85 to $125, depending on af- www.mcdonaldhopkins.com Weisberg, chief marketing officer Angel Gambino and Scott Griffin, and filiations and whether attendees Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach of Cambridge, Mass.-based Zipcar Kiva Detroit founder Rishi Jaitly. are Crain’s subscribers. 20120206-NEWS--0024-NAT-CCI-CD_-- 2/3/2012 5:13 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS February 6, 2012

BANKRUPTCIES Rail: Governor not yet on board with M1 Rail plan The following businesses filed for ■ From Page 1 Chapter 7 or 11 protection in U.S. governor has questions about the That worry is acute because this merged with the fears that if M1 was absorbed by Bankruptcy Court in Detroit Jan. 27-Feb. 2. Under Chapter 11, a com- project — ones shared by federal of- is a presidential election year, and regional system the regional authority — a move pany files for reorganization. ficials — that must be answered, Snyder’s staff is feeling pressure to of rapid-transit that would require a unanimous Chapter 7 involves total liquida- and he is concentrating on the re- expedite the regional authority so buses. Cullen board vote and then a referendum tion. gional bus plan only. that President Barack Obama can told Crain’s pre- in Wayne, Oakland, Macomb and The David 6 Family Ltd. Partner- A fear is that if the regional pro- announce funding before the elec- viously that M1 Washtenaw counties, as the re- ship, 300 E. Long Lake Road, Suite posal collapses — as so many simi- tion, the sources said. perceives the gional authority bill is currently 200, Bloomfield Hills, voluntary lar plans have over the past 40 Snyder’s staff has worked with April 6 deadline written — it would siphon needed Chapter 11. Assets: $1,550,223; lia- bilities: $302,989.71. years — blame will be laid at the lawmakers to craft bills, intro- as informal — a operation funding away from the governor’s feet, the sources said. duced two weeks ago, that would remark that pri- bus system. set up a regional authority for the Cullen vately irritated Cullen has estimated M1’s annu- bus system. The worry is that M1’s Snyder and his al operating costs at about $4 mil- system could siphon operating staff, one anonymous source said. lion. The annual operating cost for Exceptional Leadership. funds from the buses — or prove to Cullen was taken aback by the the bus routes is predicted to be as be an obstacle to getting the votes suggestion that the governor want- much as $22.5 million. Delivered. to pass the legislation. ed the M1 project to end. Under the regional authority A detailed list of questions on “That’s not what the governor bills as introduced, the 10-member how the project will be financed, told me. I’m really surprised. That authority would have to vote designed, built and operated was just doesn’t make any sense,” he unanimously to take over any sent last month to M1 Rail CEO said. “They’ve assured us some- transit system other than the high- Matt Cullen by Peter Rogoff, head thing totally different than that. speed bus system. Then there of the Federal Transit Administration. We’re working on all kinds of would have to be a general referen- Answers to those questions are things with them.” dum on the ballot in the authori- expected to determine whether M1 After talking with Crain’s, ty’s four counties on whether it will move ahead or be mothballed. Cullen called Rustem, who then is- should take over the system and “They’re tough questions, and sued the denial that Snyder want- provide operating funding for it. they need to be answered,” Rustem ed M1 out of the picture. There is skepticism that voters said. “What we’re waiting on is the outside Detroit would want to ap- answers to those questions.” Deep pockets prove the regional authority’s ab- Michigan’s Premier Retained The U.S. Department of Transporta- sorbing M1 and then paying for it. tion declined to comment on any Cullen represents M1 Rail’s lead- A recent EPIC-MRA poll commis- Executive Search Firm aspect of the situation because a ership and financial backers: sioned by the Detroit Free Press 90-day period for M1 to submit Penske Corp. founder Roger Penske, and WXYZ-Channel 7 found 58 per- plans has not ended. Crain’s has who is chairman of the project; Pe- cent of respondents supporting the requested a copy of the questions, ter Karmanos Jr., founder of De- bus plan, but only 40 percent were which are known to cover funding troit-based Compuware Corp.; the Il- willing to pay a new tax to fund it. itch family, owners of the Detroit LLC and operations. They were not asked about M1 The city of Detroit also contin- Tigers, Red Wings and Little Caesar Rail. International Executive Search ues to sit on the sidelines. Mayor Enterprises Inc.; and Quicken Loans For its initial operating funding, Tel: +1.248.645.1551 • www.huntergroup.com Dave Bing’s office has said the M1 Inc./Rock Financial founder Dan Cullen said, M1 plans to rely on and regional transit authority is- Gilbert, the project’s co-chairman. state legislation approved in 2008 sues are matters to be solved by The four have committed $3 mil- that authorized formation of a Lansing and Washington. lion each for the display advertis- nonprofit street railway company ing rights to a station along the to run the rail line. route. Henry Ford Hospital and Wayne Those bills also permit MDOT to The background State University also have commit- set up tax zones for the rail route The proposed regional authority ted $3 million each for a station. and establish an annual state ap- — its authorizing legislation is be- The Troy-based Kresge Foundation propriation of up to $8 million to ing debated in both chambers of the has pledged $35 million, part of fund the system — a law the ad- state Legislature — would oversee which has been spent. ministration thinks may not be a proposed $500 million, 110-mile Gilbert, whose business empire constitutional and possibly wor- rapid-transit regional bus system is headquartered in downtown De- thy of investigation by state Attor- with 23 stops that would operate troit and who has bought nine ney General Bill Schuette. much like a rail line, using special- buildings there, is said to be the The FTA had awarded a $25 mil- ized, trainlike buses with dedicated chief advocate for M1 Rail. He’s lion stimulus grant to the city’s lanes. They would run along Gra- also the state campaign finance co- rail project, but in December, U.S. tiot, Woodward and Michigan av- chairman for Republican presi- Transportation Secretary Ray La- enues and M-59 and would connect dential front-runner Mitt Romney. Hood reallocated that money to the to Ann Arbor and Detroit Metropoli- That relationship adds a biparti- regional bus plan. He has subse- tan Airport in Romulus. san layer of complexity for Snyder, quently said M1 could apply for an- Funding would come from bond also a Republican. other $25 million grant in the sales and license plate fees. Publicly coming to the project’s newest round of federal transit That plan, proposed by Snyder aid when Bing and Snyder ended stimulus funding — a process that with backing from Bing and the the larger rail project were Democ- doesn’t guarantee funding and in- federal government, replaced a rats: U.S. Sens. Carl Levin and Deb- volves a lengthy approval process. $528 million, 9.3-mile light rail pro- bie Stabenow, Wayne County Exec- Transit watchers say skepticism ject on Woodward Avenue. utive Robert Ficano and U.S. Reps. isn’t unusual but expressed frus- M1’s plan since 2007 was to build John Conyers and Hansen Clarke of tration. the 3.4-mile line. But in 2009, it be- Detroit and Gary Peters of Bloom- “I’m not surprised. I don’t know gan to merge with the city’s bigger field Township. Such a who’s-who why (M1) is distracting. We can do plan. makes it impolitic for the governor all of these things at the same Uncommon In December, Bing announced to publicly criticize M1 Rail. time,” said Marie Donigan, a for- Creative, Conservative Thinking. Remarkable Solutions. that the cash-strapped city was end- “It’s politics as usual, only more mer Royal Oak state representa- ing the light rail project in favor of so at a more intense level with tive who does private sector tran- the governor’s cheaper bus plan. more important people than usual sit advocacy and consulting. But M1 said it would forge ahead and more money involved than or- There is room and a need for M1 We work with our clients and their advisors to: with its original 3.4-mile plan. dinary,” said Bill Ballenger, editor and the new bus system, said Local, state and federal officials, of the Lansing-based Inside Michi- Megan Owens, executive director Reduce estate and income tax Enhance fixed income including both of Michigan’s U.S. gan Politics newsletter. of Transportation Riders United, a De- yields Solve family and business issues Improve senators, met with Bing and M1’s “He’s got his own ideas about troit-based mass transit advocacy existing life insurance policies. key backers to work out a deal to transportation, and this thing (M1) group. keep light rail alive. is going off in its own direction. It “I’m not sure (the new bus sys- On Jan. 6, they jointly an- may alienate many of his own allies tem) can handle the number of nounced that M1 would continue on this and other issues and cause people coming out of Tigers games rail planning, and Snyder and oth- him negative press, perhaps, if he or after the fireworks or whatever ers announced the 90-day time comes out in a way that looks con- event there might be,” she said. “I frame for M1 to submit plans for troversial. He doesn’t want that.” really hope this doesn’t get lost in how its system would be funded, the political process.” BIRMINGHAM, MICHIGAN 248.731.9500 built and operated. Financial worries Bill Shea: (313) 446-1626, WWW.SCHECHTERWEALTH.COM The 90 days would end April 6. If [email protected]. Twitter: the project goes ahead, it would be The Snyder administration @bill_shea19 20120206-NEWS--0025-NAT-CCI-CD_-- 2/3/2012 5:13 PM Page 1

February 6, 2012 CRAIN’S DETROIT BUSINESS Page 25 Asterand: Company struggles with debt, seeks sale www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] company on Jan. 17. should stay where they are. The July 29. compared to a net loss of $1.5 mil- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- The company said then that it rent is affordable here and talent is On Aug. 31, John Stchur, the lion in the first half of 2010. Ex- 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- hoped to have a purchase offer in affordable. But I wouldn’t be a good CFO who was honored by Crain’s cluding interest payments of 1622 or [email protected] place by mid-February, but “there manager without having a contin- in 2009 as the CFO of the year for a $1.7 million for the BioSeek deal, DEPUTY MANAGING EDITOR Daniel Duggan, (313) is no guarantee that an offer will gency plan in place,” she said. public company with revenue un- the loss was $600,000. Under rules 446-0414 or [email protected] SENIOR EDITOR Bob Allen, (313) 446-0344 or be made, or even proposed.”Mean- “We have a waiting list of more der $1 billion, resigned. In the re- of the London Stock Exchange, the [email protected] while, the company continues sup- than 40 companies who want to lease about his departure, Aster- company only reports earnings WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] plying tissue samples to re- move in, and I have a need for and said Stchur was responsible every six months. COPY DESK CHIEF Gary Piatek, (313) 446-0357 or searchers and expanding its newer shared lab space by tenants, which for the acquisition of biotech com- Revenue was actually up 36 per- [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) business of drug discovery and en- is something I’ve been thinking of pany BioSeek LLC, a deal that led to cent, from $8.7 million to $11.9 mil- 446-1608 or [email protected] vironmental analysis. developing, anyway.” Asterand’s current woes. lion. DATA EDITOR Brianna Reilly, (313) 446-0418, According to Shannon Richey, One of Asterand’s biggest and Asterand bought BioSeek, a The company has had some good [email protected] WEB DEVELOPER Steve Williams, (313) 446- the company’s marketing director, earliest investors is Arboretum Ven- small company in San Francisco, news recently, which has driven 6059, [email protected] both Jack Davis, the chairman and tures LLC, an Ann Arbor-based ven- in February 2010 in a deal financed up its share price. It hit a low of WEB EDITOR Gary Anglebrandt, (313) 446-1621, [email protected] interim CEO, and Alan Fishman, ture capital firm that invested in by a loan from Silicon Valley Bank about 2.2 cents on Nov. 28, and EDITORIAL SUPPORT Robertta Reiff (313) 446- the interim CFO, have been pro- the company in 2003. Arboretum and loan notes with BioSeek share- opened Friday at about 12.6 cents. 0419, YahNica Crawford, (313) 446-0329 hibited by the London Stock Ex- has been the most successful local holders. NEWSROOM (313) 446-0329, FAX (313) 446- On Nov. 30, BioSeek said it had 1687 TIP LINE (313) 446-6766 change, where the stock is listed, VC firm in recent years, with high- Also on Aug. 31, Asterand said it achieved a research milestone in a REPORTERS from commenting about bids. ly profitable returns to its in- had reduced its outlook for the three-year drug-discovery collabo- Daniel Duggan, deputy managing editor: Covers They also are prohibited from vestors from the sale of such Ann year because of declining sales re- ration with Ono Pharmaceutical Co real estate. (313) 446-0414 or [email protected] commenting about minimum bid Arbor-based portfolio companies lated to tissue-supply issues and Ltd., which would trigger additional Jay Greene, senior reporter: Covers health care, insurance and the environment. (313) 446-0325 or requirements or company options as HandyLab Inc., HealthMedia Inc. that it would need to find further but unspecified research funding. [email protected] if no bids come in. and Accuri Cytometers Inc. funding to keep in compliance Last Tuesday, Asterand said it Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland Previously, the company said it Managing director Tim Pe- with those loans. had got a phase two funding com- and Macomb counties. (313) 446-6796 or had enough capital to continue op- tersen said he was prohibited from Asterand announced on Oct. 24 mitment for BioSeek of $696,000 [email protected] Tom Henderson: Covers banking, finance, erations into early 2012. As of June commenting about the company that it had been notified by Silicon from the U.S. Environmental Protec- technology and biotechnology. (313) 446-0337 or 30, it had cash on hand of $4.7 mil- because of stock exchange rules. Valley Bank and BioSeek note- tion Agency [email protected] to analyze the toxicity Nancy Kaffer: Covers small business, the city of lion. The company employs about Asterand was the top performer holders that it was in default and of environmental chemicals on hu- Detroit and Wayne County government. (313) 446- 0412 or [email protected] 90, most of them in Detroit, and the in the London Stock Exchange in had 120 days to rectify the situa- man health. Bill Shea, enterprise editor: Covers media, rest in Royston, England. 2008, based on its share price in- tion. It also said it had tried unsuc- Asterand was founded 12 years advertising and marketing, the business of sports, and transportation. (313) 446-1626 or “They are our longest-standing crease for the year of 150 percent. cessfully to refinance the debt and ago by Randal Charlton, who later [email protected] tenant, they’ve been here since we Even so, as a penny stock, it didn’t had hired Daniel Stewart & Co plc, became executive director at Tech- Nathan Skid, multimedia editor. Also covers the food industry and entertainment. (313) 446-1654, opened,” Smith said. “They are an offer a meaningful exit for Aster- an investment bank in London, Town before retiring earlier this [email protected] iconic part of our history and, be- and or another of its VC investors, and Covington Associates LLC, an in- year. It went public through a re- Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or yond that, they are an important Apjohn Ventures of Kalamazoo. vestment bank in Boston, to pur- verse merger in 2006. [email protected] company. Martyn Coombs, who had been sue a sale. Tom Henderson: (313) 446-0337, Dustin Walsh: Covers auto suppliers, steel, higher education and Livingston and Washtenaw “Whoever buys them, we can put Asterand’s CEO since March 2007, In the first half of 2011, Asterand [email protected]. Twitter: counties. (313) 446-6042 or [email protected] up a good argument that they resigned from the company on reported a net loss of $2.3 million, @tomhenderson2 ADVERTISING ADVERTISING DIRECTOR Marla Wise, (313) 446- 6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 SENIOR ACCOUNT EXECUTIVES: Matthew J. Langan,Tamara Rokowski Danto: ADVERTISING SALES Christine Galasso, Lori Gift seeds loan fund for entrepreneurs Tournay Liggett, Dale Smolinski ■ CLASSIFIED SALES (313)-446-0351 From Page 1 MARKETING DIRECTOR Jeff Kapuscinski EVENTS DIRECTOR Nicole LaPointe Small Business Loan Program, such as acupuncture, he said. still runs the design center, which trepreneurs. EVENTS COORDINATOR Kacey Anderson will allow Hebrew Free Loan to “We have in this community, houses showrooms for interior de- Score helped Jacobs become eli- SENIOR PRODUCER FOR DIGITAL/ONLINE make larger loans. The larger the we’re blessed with many bright sign and furniture manufacturers. gible for the loan, which he used PRODUCTS Pierrette Dagg MARKETING ARTIST Sylvia Kolaski loan, the more resources the appli- business minds, folks who are “He was hard-working, an hon- for marketing and to build his or- SALES SUPPORT Suzanne Janik, YahNica Crawford cant will have to bring to the table. themselves entrepreneurs and all est businessman and believed in ganization’s website. AUDIENCE DEVELOPMENT MANAGER Candice Yopp “I don’t visualize Hebrew Free the professional handlers,” he giving back to the community. He “It means so much to people like MARKETING COORDINATOR Jenny Griffith Loan writing a $100,000 check to said. was always very optimistic and myself and others who are just try- PRODUCTION MANAGER Wendy Kobylarz somebody who has no other finan- Hebrew Free Loan was estab- felt we could do whatever we set ing to get started. Not only the PRODUCTION SUPERVISOR Larry Williams cial partnerships,” Joanne said. lished in 1895 and came out of a Eu- our minds to doing,” James said. money, but they make themselves CUSTOMER SERVICE One example of a loan? A young ropean Jewish tradition of sup- Hebrew Free Loan has been available for mentorships,” Jacobs MAIN NUMBER: Call (877) 824-9374 or write [email protected] person who might want to start a porting the local community. It is more active in recent years. The said. SUBSCRIPTIONS $59 one year, $98 two years. business in Midtown. now a member agency of the Jewish nonprofit made 350 loans, a total Jordan Wolfe is Jacobs’ room- Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state “I could see young people who Federation of Metropolitan Detroit. value of $1,019,200, in its fiscal 2011 mate at a communal house in Mid- rate for surface mail. Call (313) 446-0450 or want to go to that area and start a Joanne said the idea to direct year that ended last May. In 2001, it town that the Jewish Federation (877) 824-9374. SINGLE COPIES: (877) 824-9374 business. That would be a great the money toward small-business made 137 loans for a total value of and Oakland, Calif.-based Moishe REPRINTS: (800) 290-5460, ext. 125; fit,” she said. loans made sense because of her fa- $374,000. The organization has a House established last year using (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com The organization will vet appli- ther’s well-known role as a suc- default rate of less than 2 percent, rent subsidies for six young Jew- TO FIND A DATE A STORY WAS PUBLISHED: cants by looking at business plans, cessful businessman in the com- Contorer said. ish professionals. (313) 446-0367 or e-mail [email protected] taxes, cosigners and other indica- munity. Justin Jacobs is a past recipient They have worked together on CRAIN’S DETROIT BUSINESS IS PUBLISHED BY tors. The goal is for the money to “We hope it will stimulate a lot of Hebrew Free projects related to supporting CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain help people invest in their growing of entrepreneurship in the Detroit Loan money. He young professionals and business- PRESIDENT Rance Crain businesses, not just do business as metropolitan area that would, in borrowed people in the Detroit area, includ- SECRETARY Merrilee Crain usual, Contorer said. turn, be an impetus for young peo- $15,000 to sup- ing Detroit Harmonie, a nonprofit TREASURER Mary Kay Crain Executive Vice President/Operations “If you have an idea and you ple not to leave if they felt there port ComePlay- that seeks to break down racial William A. Morrow Group Vice President/Technology, want to launch something, great. was that opportunity here,” she Detroit, an orga- barriers and support social entre- Manufacturing, Circulation You’ve got an existing business said. nization he preneurship. The organization Robert C. Adams Vice President/Production & Manufacturing and you want to expand it to a new Danto fought in Europe in established as this month is holding a contest to Dave Kamis location, creating jobs? Great. You World War II, attaining the rank of an L3C to en- give a total of $50,000 to 11 social Chief Information Officer have a business and your boiler is captain in the U.S. Army. courage more entrepreneurs. Both were winners Paul Dalpiaz Chief Human Resources Officer broken? I don’t think we’re the He then made his career in the young people to of Crain’s 20 in their 20s award last Jacobs Margee Kaczmarek right fit for you. Somebody calls us furniture and home interiors busi- live, work and year. Director of Audience Development Operations Michelle Roth about legal assistance, a pending ness, establishing the Michigan play in Detroit. ComePlayDetroit Wolfe said he doesn’t see a large G.D. Crain Jr. Founder (1885-1973) lawsuit, that’s not what we’re talk- Design Center in Troy in 1975. He holds recreational and social number of loans being made, but Mrs. G.D. Crain Jr. Chairman (1911-1996) ing about with this business loan followed that up in 1982 with the events in the city, such as a kick- the ones that are made will make a EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) here,” Contorer said. 775,000-square-foot Design Center of ball game on Belle Isle last sum- difference. 446-6000 Hebrew Free Loan will assign at the Americas in Dania Beach, Fla. mer that attempted to break the “If you can make five to 10 loans Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 least one mentor to each loan re- He also ran the real estate in- Guinness Book of World Records a year, it moves the needle a little is published weekly, except for a special issue the cipient, Contorer said. The men- vestment business Danto Invest- entry for the most participants. bit in the Jewish community,” third week of August, and no issue the third week of December by Crain Communications Inc. at tors will provide legal, financial ment Co. (The 1,800 participants were about said Wolfe, who also does consult- 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and and other types of business guid- The family foundation’s past 450 shy of the record.) ing work for the federation’s Com- additional mailing offices. POSTMASTER: Send ance. Entrepreneurs can also pro- philanthropy includes a gift to the Jacobs said before Hebrew Free munityNext program to attract address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, vide strategic assistance to each University of Michigan’s A. Alfred Loan gave him any money, it first and retain young professionals in MI 48207-9732. GST # 136760444. Printed in other. A person who wants to open Taubman Medical Research Insti- put him in touch with Score, a Michigan. U.S.A. Entire contents copyright 2012 by Crain a massage business might be tute to support breast and ovarian group that connects experienced Gary Anglebrandt: (313) 446- Communications Inc. All rights reserved. paired with someone who already cancer research in its Emerging former business executives, often 0473, [email protected]. Reproduction or use of editorial content in any manner without permission is strictly prohibited. runs a similar type of business, Scholars program. His son, James, retired, with less-experienced en- Twitter: @anglebrandt 20120206-NEWS--0026-NAT-CCI-CD_-- 2/3/2012 5:44 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS February 6, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 28-F3B. 3

and New York Giants fans. more in Royal Oak over the a year. Using impulse radar, Season ticket next two months as part of a Although Michigan is SME determined the struc- regional expansion. The buzzing about a looming Blockbuster tural integrity of the con- company leased more than showdown over right-to- crete — a service offered by prices for Lions 300,000 square feet of manu- work legislation — and on only a handful of companies facturing space in the Arse- Wednesday neighboring In- nationwide, President to rise 8 percent nal Industrial District, formerly diana became the first brewing in Mark Kramer said. the Detroit Arsenal Tank Plant. right-to-work state in the “We can use this as a Quicken Loans Inc. industrialized Midwest — marketing piece or tangible on average founder Dan Gilbert an- Gov. Rick Snyder’s office has example to show our clients nounced the acquisition of only reiterated his state- we can identify structural Detroit Lions season yet another building in the ment that he considers oth- the Madison? problems in a noninvasive tickets will increase, city of Detroit: The former er, less controversial issues way, without spending a lot D on average, nearly Federal Reserve Building more of a priority. hen Dan Gilbert Ren Cen is in the red of money,” Kramer said. 8 percent for the 2012 sea- at 160 W. Fort St. The va- The state plans to and Josh Linkner son, averaging $72.04 a cant building reportedly is launch the Pure Michigan W took over the The Renaissance Center game, up from $66.71 last owned by investors from Venture Match to invest in in red? Detroit gets ESPN radio Madison Theatre Building year. A single-game suite the Seattle area, and was early-stage technology com- Yes, but it’s not red ink. last year, the goal was to fill Detroit now has ESPN rental starts at $2,880 and listed for $5 million. panies. The Michigan Eco- The bands of red light encir- it with new businesses with Radio full time. increases to $11,250, accord- nomic Development Corp. and cling the office towers this big ideas. WCAR 1090 AM, which ing to DetroitLions.com. Michigan Strategic Fund will month are part of the Ameri- They certainly got one in had been all-talk radio, Nothing was said about in- COURTS hold a public hearing Tues- can Heart Association’s “Go Exxodus Pictures LLC, a switched to a sports format dividual game tickets day on the proposed fund, Red for Women” cardiac Warren-based Asset 4-year-old film production and began airing ESPN which plans to provide a care promotion. Acceptance Capital Corp., business that has a super- Radio’s syndicated national minimum investment of The AHA’s Go Red for one of the nation’s largest natural thriller called shows on Wednesday. ON THE MOVE buyers of consumer debt, $350,000 and a maximum of “Jinn” in post-production Women luncheon will be The weekday schedule Melinda Conway Calla- will pay a $2.5 million civil $500,000 to companies that at Warner Brothers. The Feb. 17 at the MGM Grand De- starts with “Mike & Mike In han has been named presi- fine to settle deception al- already have secured movie does not yet have a troit, with health screenings the Morning” 6-10 a.m., “The dent of the legations, AP reported. $700,000 to $3 million of in- distributor. The movie is in the morning. Herd With Colin Cowherd” 10 Crittenton The Federal Trade Commis- vestment funding from oth- about supernatural beings Co-chairs this year are a.m.-1 p.m., and “The Scott Hospital sion said the company er sources. Companies from Arabic folklore. Paula Silver of Quicken Loans Van Pelt Show” 1-4 p.m. Medical Cen- agreed to the penalty and must have their outside in- Exxodus co-founder Ajmal and Deborah Ann Greenman- The station also will air ter Founda- to changes in the way it vestment before applying “A.J.” Zaheer Ahmad wrote Arlin of Toyota Motor Engi- national play-by-play of Ma- tion in collects debt. for state funding. and directed the movie. neering & Manufacturing jor League Baseball and Na- Rochester Blue Cross Blue Shield of Wayne State University’s Ahmad first got the idea North America Inc. tional Basketball Association Hills, effec- Michigan has filed a motion board of governors ap- of a movie about the Jinn Throughout the month, games. There will be local tive Feb. 13. in U.S. District Court in De- proved a proposal to tough- when he was 9 years old and everything from the Campus sports content, including Callahan troit to dismiss a lawsuit en admission requirements had listened to more than a Martius skating rink to the Callahan news and score updates had been by Hartford, Conn.-based that could reduce enroll- few threats from his Indian- lights atop the Penobscot every 20 minutes. president of the Presbyterian Aetna Inc. that alleges some ment by 5 percent. Incom- born parents that the Jinn will join the RenCen. WCAR is owned by Villages of Michigan Founda- of its hospital contracts ing freshmen in 2013 will be would come for him if he Luncheon tickets are Southfield-based Birach tion in Southfield. She suc- are anti-competitive and evaluated on their entire didn’t eat his vegetables. He $175; for details see Detroit Broadcasting Corp. ceeds Katy Olsen, who will increase health care costs, academic record, along said many non-Western cul- GoRedForWomen.org. remain with Crittenton as at least to Aetna’s policy- with an essay, instead of tures already have some donor development coordi- holders. the current policy of using form of Jinn in their lore, ITS IECES Local firm scores B & P nator. Henry Ford Health Sys- a student’s grade point av- making for fertile pop-cul- Dana Suggitt of Spalding Charles “Chip” McClure, tem in Detroit has agreed to erage and ACT score for de- ture ground. Super Bowl work DeDecker Associates Inc., Meritor Inc.’s chairman, pay a $70,000 fine to family termining admissions. The The movie is written to Plymouth-based Soil and Rochester Hills, has been president and CEO, has members who alleged that new guidelines will create be the first of a trilogy, and Materials Engineers Inc. had a named the American Society been named to the DTE Ener- staff at Henry Ford’s 45 jobs over the next three the company hopes it will key behind-the-scenes role of Civil Engineers Southeast gy Co. board of directors. Kingswood Hospital in Fern- years, the university said. become a franchise that in- in Sunday’s Super Bowl XLVI. Michigan branch Young dale failed to provide effec- The board that over- cludes a TV series, mer- sees Detroit Metropolitan Air- In 2009, the firm was Civil Engineer of the Year. tive communication to a chandise and a video game. port will refund nearly $14 hired to help renovate the Comstock-based Bell’s COMPANY NEWS patient who is their rela- Dominic Rains, who has million to the venue’s 13 Georgia Street pedestrian Brewery Inc. has inked a deal Eau Claire, Wis.-based tive and is deaf, said Bar- appeared on the TV series airlines because revenue mall that surrounds Lucas to be the title sponsor for Menard Inc. is seeking a re- bara McQuade, U.S. attorney “General Hospital” and outpaced expenses in 2011. Detroit’s Bayview Yacht zoning of property at 12701 for the Eastern District of “FlashForward,” is the lead Oil Stadium, home of the Indi- Any budget deficit is con- Club’s annual race to Mack- Middlebelt Road in Livonia Michigan in Detroit. actor. Ray Park, who played anapolis Colts. tractually made up by the for its first metro Detroit Darth Maul in “Star Wars: Indianapolis city plan- inac Island through 2014. airlines that use Metro, and store. A public hearing on Episode I – The Phantom ners and the design team at The 88th Bell’s Beer Bayview THER NEWS they in turn lean on the au- the matter is scheduled for O Menace,” and Serinda Swan, SME were concerned that Mackinac Race is set for July thority to further trim Feb. 14 at Livonia City Hall. The House Tax Policy who is in the A&E Television sidewalks could collapse 14. Bell’s replaced Pure costs. Conversely, any bud- Bloomfield Hills-based Committee is considering Networks show “Breakout under the weight of thou- Michigan, the title sponsor of get surplus is funded to the PulteGroup Inc. reported its legislation that would re- Kings,” also play lead roles. sands of New England Patriots the past two races. airlines. first quarterly profit since peal the so-called inventory Figures released by June 2010 as the company tax on houses constructed the Michigan Department of incurred lower write- by homebuilders but not Technology, Management and downs, increased prices yet occupied. House Bill Budget show that the num- and cut costs. Net income 4134, introduced by Rep. ber of 18- to 24-year-olds was $13.8 million, or 4 cents Margaret O’Brien, R-Portage, leaving the state dropped in a share, compared with a would eliminate the tax on net loss of $165.4 million, or the house itself and instead 2009-10 — to 4.5 percent — BEST FROM THE BLOGS from 5 percent in 2008-09. 44 cents, a year earlier, the tax the property based only READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS company said. on the value of the land the For those aged 18-19, the Palace Sports & Enter- structure sits on. The rate dropped from 5.5 per- Tax capital gains, not labor Prentice: The return of Morels tainment LLC may slash the house would go on the tax cent in 2008-09 to 4 percent number of suites of The rolls once it is bought or oc- in 2009-10. Also, about The reincarnated … 116,000 people relocated to Those doing M&A Morels restaurant will Palace of Auburn Hills to 80 cupied. have“ really interesting be a lot like the skyboxes from 178, the The Detroit Institute of Michigan in 2010, but jobs. If they do them original, highlighting Sports Business Journal re- Arts is seeking to get Wayne, 178,000 left. That compares right, they get well all the ingredients ported, by converting suite Oakland and Macomb coun- with 117,000 arriving and rewarded. … And they’d that Michigan has to space on the penthouse lev- ties this year to authorize a 206,000 moving out in 2009. continue doing those offer. rewarding, interesting el into social media gather- tax to help maintain the mu- jobs if their tax rate got ing sites, a restaurant and a seum’s operations, The De- OBITUARIES bumped. sports hall of fame. troit News reported. The Comau Inc., the South- funding model would be sim- Jeff Murri, longtime ” field-based U.S. subsidiary of ilar to how the Detroit Zoo general manager and vice Reporter Tom Henderson’s blog about accounting, Reporter Nathan Skid’s Detroit-area restaurant blog Fiat-owned Comau S.p.A., gets support. The newspaper president of Detroit Fox affil- banking, venture capital and high tech can be found can be found at www.crainsdetroit.com/skid reported the tax would cost iate WJBK-Channel 2, died at www.crainsdetroit.com/henderson could add up to 200 jobs in Warren and as many or owners of $200,000 homes $20 Feb. 2. He was 50. DBpageAD.qxp 2/2/2012 3:52 PM Page 1

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