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®

www.crainsdetroit.com Vol. 28, No. 10 MARCH 5 – 11, 2012 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 When film credits dried up, What’s behind Beaumont NEI crafts recruiting new chiefs? Cut! so did Raleigh’s payments Sale of Barden building brings estate closure closer

NATHAN SKID/CRAIN’S DETROIT BUSINESS program to Focus: Innovations boost tech Grants to top $30M; Midtown a target BY CHAD HALCOM tax credits, Raleigh Michigan could CRAIN’S DETROIT BUSINESS continue to operate for five more years BY TOM HENDERSON CRAIN’S DETROIT BUSINESS aleigh Michigan Studios opened without returning another dime. Michigan Motion Picture Studios LLC The New Economy Initiative has embarked on an under a marquee of co-owners , which owns and operates Raleigh Stu- ambitious 10-year program called the Regional Inno- R with names almost as vation Network to boost high-tech development and Breast cancer ultrasound renowned in Michigan as the Holly- dios Detroit in Pontiac, is co-owned job creation in Southeast Michigan, with a particu- lar emphasis on Detroit’s Mid- wood stars and directors they hoped by its CEO, Linden Nelson; John tech nears marketplace, Rakolta, CEO of Detroit-based Wal- town. to attract. NEI Executive Director David bridge Aldinger Co. Page 11 But the studio in Pontiac likely will , which built the stu- Egner said the initiative — de- miss a second consecutive bond pay- dio; A. Alfred Taubman, founder of signed to connect the dots of in- Bloomfield Hills-based Taubman Cen- novation, from the riverfront to Crain’s lists: IP law firms, ment to investors in August unless it Ann Arbor and East Lansing — ters Inc.; and William Morris Endeavor En- biotech firms, Pages 17-18 lands another big-budget film pro- will make at least $30 million in tertainment, duction lease soon or the state eases headed by co-CEO Ari grants to an array of organiza- Emanuel, brother to Chicago Mayor tions. its cap on film and digital media pro- “This is at least a 10-year This Just In duction incentives. See Raleigh, Page 24 strategy,” he said. “The assets Egner That means a second we have here, if strung together, can create one of the most innov- Agencies target public payout by the Michigan WINNERS ative, creative hubs in the coun- corruption with task force State Employees Retirement try.” Grants: Projects System Organizations getting ap- that received A host of federal and local , which guaranteed NEI funding, agencies announced last most of the bonds and al- proved for grants so far include Page 23 the Innovation Institute at Henry week a new task force target- ready covered most of the ing public corruption. Ford, TechTown, NextEnergy, the The multiagency task studio’s $630,000 interest technology transfer office at Wayne State University force includes representa- payment to bondholders and Midtown Detroit Inc., all in Detroit; and the Michigan Life Science and Innovation Center, a tech in- tives of the FBI, the state at- last month. torney general, the U.S. Inter- NATHAN SKID/CRAIN’S DETROIT BUSINESS cubator in Plymouth Township that is a joint ven- Still, under an unusual nal Revenue Service’s Raleigh Michigan Studios in Pontiac includes 170,000 See NEI, Page 23 Criminal Investigation Divi- provision tied to federal square feet of studio and mill space for film work. sion, the U.S. Department of Housing and Urban Develop- ment’s Office of the Inspector General, the U.S. Environmen- tal Protection Agency’s Crimi- Biz partners keep plates full developing restaurants, beers nal Investigation Division, the U.S. Department of Trans- BY NATHAN SKID about $2.5 million to renovate, in- portation’s Office of the In- CRAIN’S DETROIT BUSINESS cluding a 3,400-square-foot expan- spector General, the Michigan sion. The more than 8,000-square- State Police and the Detroit Po- By the time construction begins foot restaurant is expected to open lice Department. this spring on the expansive Jolly by the end of the year. A release issued last week Pumpkin Café and Brewery in down- And that’s just the beginning for by the FBI said public cor- town Royal Oak, Greg Lobdell and Carlson and Lobdell, co-founders ruption is the FBI Detroit Di- Jon Carlson will be knee-deep into of Ann Arbor-based 2 Mission De- vision’s highest criminal pri- their next set of projects. sign and Development LLC. ority. The 270-seat Jolly Pumpkin, lo- They also are working on four — Nancy Kaffer cated in a former Citizens Bank other restaurant projects. In Ann branch at 218 S. Main St., will cost Arbor, they are expanding The Blue Tractor Cook Shop and opening a cocktail lounge in its basement called Mash while relocating Café Ha- bana and renaming it Lana Habana. In Royal Oak, Carlson and Lob- dell are refiguring the layout of the Bastone complex, which now en- compasses four dissimilar venues. BOB CHASE Greg Lobdell (left) and Jon Carlson of 2 Mission Design and Development LLC By year’s end, 2 Mission will oc- NEWSPAPER have five restaurant projects under way, including expanding The Blue Tractor See Partners, Page 25 Cook Shop (pictured) in Ann Arbor. 20120305-NEWS--0002-NAT-CCI-CD_-- 3/2/2012 4:57 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 5, 2012

MICHIGAN BRIEFS Region along I-69 becomes downtown casino told developers last week that the project could in- state’s third ‘aerotropolis’ zone For Gentex, rearview rule farther away than it seemed crease crime and problem gam- If Next Michigan Development Corp. bling and suck money from other doesn’t ring a bell, try “aerotropo- The next innovation that Zeeland-based Gentex percent on shipment growth of up to 14 percent over businesses. Bill Martines of Lans- lis.” That’s the term popularized by Corp. may want to pursue is a rearview mirror with three to four years, said David Leiker, a Robert W. ing Futures LLC, which is develop- the state’s first Next Michigan De- a backup camera and a crystal ball, to see oncoming Baird & Co. analyst, in December. ing the project, told them he’ll see velopment Corp.: the Detroit Region detours in the bureaucracy. Gentex reported $1.02 billion in revenue in the that negative comment and raise Aerotropolis around Detroit Metropol- Last week, Transportation Secretary Ray LaHood year that ended Sept. 30. them “instances all across the itan and Willow Run airports. A sec- delayed a requirement that all cars and light trucks President Obama listed the proposed rule as one country where there’s a positive ond was approved for the Lansing sold in the U.S. have rearview cameras. It is the sec- of the five most expensive pending U.S. regulations effect on the community.” area around that region’s airport. ond time that the rule has been delayed. in a letter sent to House Republicans last summer. Also last week, the Lansing Last week, the I-69 International One obvious beneficiary of the proposal would be Requiring backup cameras would add $58 to $203 State Journal published a list of in- Trade Corridor became the state’s Gentex, which makes rearview mirrors that in- to the cost of a vehicle, depending on the model and vestors that includes investors in third and largest you-know-what. clude camera displays. That may explain why the whether it already has a video screen, the National the now-idle Pinnacle Race Course These entities can offer businesses company’s stock took a hit after the delay was an- Highway Traffic Safety Administration has said. Back- in Romulus: Jack Krasula, presi- tax breaks and other incentives to nounced. over accidents cause 292 U.S. deaths annually, most dent of Southfield-based Trustinus locate near major transportation Gentex could see revenue growth of as much as 20 often killing children and the elderly. LLC; Jerry Campbell, former chair- facilities, such as airports or ship- man of Citizens Republic Bancorp; ping ports. The I-69 corridor spans and Robert Liggett Jr., chairman Liveris was wondering how this Google Inc.’s super-high-speed and engineering companies. of Warren-based Big Boy Restau- Genesee, Lapeer, St. Clair and Shi- justifies opposition to Dow’s spon- broadband fiber network. But last Steven Webster, Prima Civitas awassee counties and includes rants International LLC. Martines sorship of this summer’s Olympic week, community and business board chairman and CEO, said the also is president of the Southfield- Flint’s Bishop International Airport Games in London. The head of the leaders, including the Prima Civitas community is “exquisitely close” and the Blue Water Bridge in Port based Internet promotions compa- Indian Olympic Association has said Foundation, announced a plan to to having all of the fiber-optic ca- ny All Day Interactive LLC. Huron. he would protest to the Internation- bring the region broadband ser- bles in place for the first phase. al Olympic Committee and the vice that’s 100 times faster than Find business news from Dow acquires Olympic sponsorship British government, contending what’s available to most homes around the state at crainsdetroit Dow is “linked with the deaths of and businesses. Lansing Casino investors also .com/crainsmichiganbusiness. criticism in buying Union Carbide thousands of Indians.” Liveris The Lansing State Journal re- were behind Pinnacle Race Course Sign up for Crain's Michigan On Dec. 3, 1984, an accident at called that logic “beyond belief.” ported that the first area to receive the Union Carbide pesticide plant re- He added that “because we are a the revved-up broadband would be A small but committed group of Business e-newsletter at crains leased methyl isocyanate gas into healthy company with deep pock- a corridor extending from down- opponents of Lansing’s proposed detroit.com/emailsignup. the streets of Bhopal, India, killing ets, … people want a second bite of town Lansing to Michigan State Uni- an estimated 3,800 people on the the cherry.” versity, the Capital Region Interna- spot. In 2001, 16 years after the ac- tional Airport “aerotropolis” (see CORRECTION cident and a decade after Union Lansing-area groups plan regional previous item), the University Corpo- Ⅲ A story on Page 1 in the Feb. 13 issue, “McLaren’s Plan B if CON is Carbide paid a $470 million settle- broadband that’s 100 times faster rate Research Park near the MSU rejected: Legislators,” should have said that Doctors’ Hospital of Michi- ment, Midland-based Dow Chemical campus, and areas in south Lans- gan in Pontiac is the closest to a proposed McLaren Health Care hospital Co. bought Union Carbide. Two years ago, the Lansing area ing. This area has a significant in Independence Township at 9.2 miles away. Last week, Dow CEO Andrew lost out on becoming a test site for number of technology, health care 20120305-NEWS--0003-NAT-CCI-CD_-- 3/2/2012 6:25 PM Page 1

March 5, 2012 CRAIN’S DETROIT BUSINESS Page 3

Inside Beaumont recruits for new chiefs Lawsuit proceeds over loans by Flagstar Bank, Page 4

hospital’s medical administrative Bill unlikely to defuse tension System cites new med school, health care reform arm that includes physician lead- ership recruiting, said Beaumont between real estate agents, BY JAY GREENE has several reasons for recruiting appraisers, Page 10 CRAIN’S DETROIT BUSINESS a new breed of clinical leaders. The plan ... is to look for The system seeks to have the new Beaumont Health System is replac- “ leaders in place this year. ing or hiring as many as seven chairs and physician leaders to “Many chiefs arrived in the physician department chiefs in ob- 1980s. They have been very pro- stetrics/gynecology, surgery, radi- take the departments ductive, built up the departments Company index ation oncology, emergency medi- and led Beaumont to where it is cine, pediatrics, psychiatry and to the next level. now,” said Wood, a cancer surgeon These companies have significant mention in this neurology. ” hired last December from Universi- week’s Crain’s Detroit Business: Several physicians for the three- David Wood, M.D., Beaumont Physician Partners ty of Michigan Health System in Ann 2 Mission ...... 1 hospital system based in Royal Arbor. ApoLife ...... 16 Oak tell Crain’s that the turnover class last August with 50 students. teach, publish and do research — “Since a number have reached Arboretum Ventures ...... 11 was prompted by Beaumont’s deci- “We are a teaching hospital (in less on the clinical side. They have retirement age, the plan going for- sion to hire medical department Royal Oak) that is moving toward other people to do that. They are ward with the medical school is to Barden Cos...... 3 leaders who have strong academic more of an academic medical cen- trying to become more of a system look for chairs and physician lead- Barron Rosenberg Mayoras & Mayoras ...... 22 and research backgrounds. The ter model,” said one Beaumont than three independent hospitals. ers to take the departments to the Baskin Law Firm ...... 21 new hires are expected to provide physician, who asked not to be The old model doesn’t work any- next level with health care reform, Beaumont Cancer Center ...... 25 greater expertise to the Oakland identified. more under health care reform.” value-based payments and put Beaumont Health System ...... 3 University William Beaumont School Another Beaumont physician David Wood, M.D., president of BioLumix ...... 15 of Medicine, which opened its first said: “They want physicians who Beaumont Physician Partners, the See Beaumont, Page 25 Blue Tractor Cook Shop ...... 1 Café Habana ...... 1 Charter One Bank ...... 19 Delphinus Medical Technologies ...... 11 Flagstar Bank ...... 4 Barden building sale brings estate closure closer Grand Valley State University ...... 3 Griffin Properties ...... 25 Y HERRI ELCH en Gate casino majority owners Derek and Greg B S W Henry Ford Health System ...... 23 CRAIN’S DETROIT BUSINESS Stevens. Terms of the Fitzgeralds deal were not disclosed, but Barden had licensed the name for Jolly Pumpkin Cafe and Brewery ...... 1 With the recent sale of its downtown Detroit the 640-room Fitz Casino and Hotel, and that Mash ...... 1 headquarters, Barden Cos. Inc. is close to wind- was not included in the sale of the casino, ac- Michigan Association of Realtors ...... 10 ing down operations. cording to a report in the Las Vegas Review- Michigan Economic Development ...... 23 But it’s still unclear who will benefit from Journal. Michigan Life Science and Innovation Center . . . . . 1 the sale of the business as- Majestic Star had two riverboat casinos in Michigan Motion Picture Studios ...... 1 sets that remained after Don Gary, Ind., plus hotels with 806 rooms. It also Michigan State University ...... 23 Barden’s death: his widow, had casinos in Tunica, Miss., and Black Hawk, Bella Marshall; his children, Colo. An investment fund managed by Min- Michigan Technological Institute ...... 11 Don Jr. and Alana; or some- nesota-based Wayzata Investment Partners LLC is Midtown Detroit ...... 23 one else. now the largest owner of the reorganized casi- Monk ...... 25 In February, Grand Valley COSTAR GROUP no company, the Review-Journal reported. Mort Meisner Associates ...... 21 State University acquired the Grand Valley State University bought the former When Majestic Star began operating a river- Nanocerox ...... 13 three-story building at 163 Barden Cos. Inc. headquarters on Madison Avenue in boat casino in Gary in 1996, Barden became the New Detroit ...... 6 Madison Ave., with its view Detroit near Comerica Park. first African-American casino owner in the of Comerica Park, for $3 mil- New Economy Initiative ...... 1 Barden U.S.; in 2001 he became the first African-Ameri- lion from Barden Cos.’ Way- ucation programs for teachers. can to own a casino in Las Vegas. NextEnergy ...... 23 cor Development Co. The Grand Rapids-based The sale follows the transfer in December of Barden entered the casino business after sell- Oakland University ...... 3 university plans to use the 1908 building as a Barden Cos.’ Majestic Star LLC casino holdings ing his interest in Detroit-based Barden Cablevi- Quicken Loans ...... 6 base for oversight and support of the 24 charter to its largest creditors as part of a bankruptcy sion to Comcast for $100 million in 1994. Raleigh Michigan Studios ...... 1 schools it has authorized in metro Detroit and reorganization and the late October sale of the S3 Entertainment Group ...... 24 for student-teacher training and continuing ed- Fitzgeralds Casino and Hotel in Las Vegas to Gold- See Barden, Page 22 Spider9 ...... 14 Sue Marx Films ...... 24 Talmer Bancorp ...... 4 Tanner Friedman ...... 21 Turnover of longtime talent a win-lose for local TV TechTown ...... 23 University of Michigan ...... 23 tract was up within the next 12 Vinotecca ...... 25 Departures lower salaries but rattle stations’ images months. Wayne State University ...... 23 Another financial decision Western Michigan University ...... 11 BY BILL SHEA That’s the combined estimated al retirement age, some on-air per- looms for the station: The contract WXYZ-Channel 7 ...... 3 CRAIN’S DETROIT BUSINESS base pay of anchor Robbie Tim- sonalities are leaving because for anchor Diana Lewis, a fixture mons, meteorologist Jerry Hodak their contracts are being renewed at WXYZ since 1977, is up in Sep- Last week’s retirement of sports and Shane, who announced his re- at lower pay rates. tember. Her current deal is be- anchor Don Shane is the latest in a tirement Wednesday. Ed Fernandez, WXYZ’s general lieved to be worth between series of depar- Even so, the retirements are manager and vice president, said $800,000 and $1 million annually tures of long- only a mixed blessing and reflect a the station’s bottom line wasn’t a on a two- or three-year contract. time on-air tal- wider trend across the broadcast factor in Shane, Hodak and Tim- Anchor Erik Smith, who had ent from ABC industry: Veteran on-air TV news mons calling it quits. been with the station since 1962, Department index affiliate WXYZ- talent is leaving stations, taking “In all their cases, finances had didn’t have his contract renewed Channel 7 over brand equity built over many nothing to do with it,” he said. in 2010. He was believed to have BANKRUPTCIES ...... 4 the past 18 years with them but also provid- “Jerry and Robbie were well past been paid at least $200,000 annual- CALENDAR ...... 19 months, taking ing salary relief for news outlets retirement age. Don said he wants ly. Smith couldn’t be reached for JOB FRONT ...... 20 what industry under financial pressure fueled by to (retire) because he can, to spend comment. CLASSIFIED ADS ...... 21 insiders say is the loss of viewers and advertising time with his family. It happened Hodak, 69, announced in July more than dollars to cable, the Internet and to be coincidental, the timing.” 2010 that he was retiring from KEITH CRAIN...... 8 Shane $1.3 million in social media. Fernandez declined to discuss WXYZ in September of that year. LETTERS...... 8 salaries off the Southfield station’s While a generation of older tele- contract details or negotiations, MARY KRAMER ...... 9 books. vision talent is reaching its natur- but he did note that Shane’s con- See TV, Page 21 OPINION ...... 8 PEOPLE ...... 20 RUMBLINGS ...... 26 Crain’s Small Business Association of Michigan event Contract Opportunities WEEK ON THE WEB ...... 26 THIS WEEK @ Head to Grand Rapids on March 20 for a Crain’s Second A new feature in Wednesday’s Crain’s Michigan Stage Workshop on economic gardening, held with Business e-newsletter highlights state contracts WWW.CRAINSDETROIT.COM SBAM, crainsdetroit.com/events coming up for bids, crainsdetroit.com/crainsemails 20120305-NEWS--0004-NAT-CCI-CD_-- 3/2/2012 4:59 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 5, 2012 IP Experience Suit over Flagstar Bank loans proceeds In Your Corner. BY TOM HENDERSON Ross Jr. owns 8 percent of Assured On Feb. 24, the U.S. govern- CRAIN’S DETROIT BUSINESS Guaranty’s parent company, ment announced that it had Bermuda-based Assured Guaran- reached a $133 million settlement A federal judge has denied a ty Ltd. with Flagstar to end a lawsuit motion by Flagstar Bank to dis- Coincidentally, also last week, that alleged the bank’s mortgage miss a lawsuit alleging that the another Michigan bank, Troy- unit had been involved in fraudu- Troy-based bank breached a se- based Talmer Bancorp Inc., an- lent lending practices. ries of contracts insuring nearly nounced a commitment of $174 The bank admitted to making $1 billion in loans in securities million in equity capital from cur- false claims that caused the Feder- backed by home equity loans. rent investors, including Ross’ al Housing Administration to accept New York-based Assured Guar- W.L. Ross & Co LLC of New York loans for insurance that were in- anty Municipal Corp. alleged that City. eligible, resulting in losses by the the loans, made in 2005 and 2006, Flagstar is Michigan’s biggest U.S. Department of Housing and Ur- were riddled with fraud and mis- bank, with more than $13 billion ban Development. representation. The suit, filed in in assets. It’s part of a series of suits by April, seeks at least $82.4 million Since 2009, Flagstar has been the federal government through in damages and is similar to a se- raising capital, cleaning up its bal- the U.S. District Attorney’s office ries of suits filed by the U.S. gov- ance sheet and revamping its top in New York. ernment. roster of executives. New York-based Citibank NA On Feb. 15, Judge Jed Rakoff of It has announced plans to add was the third suit, which was U.S. District Court in New York bank branches and expand its both filed and settled on Feb. 15 heard oral arguments over commercial lending business, for $158.3 million Flagstar’s motion seeking a sum- among other plans. In May, the district attorney mary judgment. It has 113 branches in Michigan. sued Germany-based Deutsche But Rakoff denied that motion The topic of insurance for bank Bank AG based on $386 million of Wednesday and said he would is- loans has been a hot topic after a insurance claims, and in Novem- sue an opinion explaining his de- series of suits filed against banks ber, Houston-based Allied Home cision “in due course.” — including Flagstar — by U.S. Mortgage Capital Corp. was sued Both parties were instructed to District Attorney of New York based on $834 million in claims. Tim Eagle join him in a conference call to- Preet Bharara and several other Daniel Duggan contributed to day to schedule a trial. federal government entities. this report. New York financier Wilbur

First Tier Ranking in Litigation - BANKRUPTCIES Intellectual Property The following businesses filed for I Metro Detroit I Grand Rapids I Kalamazoo I Grand Haven I Lansing Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Feb. 24–March 1. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation.

His and Herz LLC, dba Sole Sisters, 400 Waymarket Drive, Ann Arbor, voluntary Chapter 7. Assets: $12,200; liabilities: $311,328.69. Vanilla Woodward LLC, 55 E. Long Lake Road, Troy, voluntary Chapter 11. Assets: $1.1 million; liabilities: $1.15 million. 2012 GLK350 — Meghana Keshavan 4MATIC 30 mo./10K Lease $ 36600 Woodward Ave 419 mo. Bloomfield Hills, MI 48304 NOMINATE ENTREPRENEURS 248-644-8400 FOR CRAIN’S SALUTE Plus tax, title, plates. Tier 1 credit. $4603 due at signing. The deadline to nominate someone for Crain’s Salute to Entrepreneurs awards program has been moved to April 30. Crain’s is seeking nominations for entrepreneurs who deserve to be recognized for their innovation, problem- solving ability or sheer relentlessness. Anyone is welcome to nominate an entrepreneur, including entrepreneurs themselves. The awards are broken out by five revenue categories according to size. There is also a category for social entrepreneurs and one for “intrapreneurs,” or people within companies who have demonstrated an entrepreneurial spirit to help the company grow. Award winners will be recognized in the June 18 edition. Go to crainsdetroit.com /nominate for more information on the categories and the requirements to make a nomination. Questions? Contact Gary Anglebrandt, Web editor, at [email protected] or (313) 446-1621. DBpageAD.qxp 2/14/2012 2:54 PM Page 1

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CRAIN’S DETROIT BUSINESS ShowShow Them Them What What Gilbert a keynoter The Engineering Society of Detroit YouYou StandStand For For at Idea: Detroit Engineering & Technology

Plans by Quicken Loans Inc. BBB Accreditation is a commitment founder Dan Gilbert to revitalize the city Job Fair to fairness and honesty that lets and bring a new consumers know you are a business generation of companies down- they can trust - a business that town are among the hottest topics March 12, 2012 in the region. 2 p.m. – 7 p.m. honors its promises and embodies Gilbert is ex- pected to address Suburban Collection Showplace, Novi confidence they deserve. those topics Wednesday as a Your customers start with keynote speaker Hundreds of Opportunities; at Crain’s Idea: bbb.org. Detroit Confer- Major Michigan Companies; Proven Results ence at the Fox Shouldn’t you? Theatre. His commit- Yes, engineering and technical jobs do exist in Michigan. And we Gilbert ment to Detroit, have them for you—all under one roof and for one day only. the idea of creat- ing a dynamic urban core and the push to bring more businesses to Recognized as the premier recruitment fair for engineers, the city are some of the likely top- scientists & tech professionals, the job fair will: ics, said Paula Silver, Quicken t

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Grow your career or start a new one Park and Campus Martius Park ® during the past year, making him Visit www.esd.org today for more information or to register. the largest nongovernment land- Start With Trust lord in the central business dis- trict behind General Motors Co. The conference, presented with Better Business Bureau Crain’s affiliate publication Adver- Serving Eastern Michigan and the Upper Peninsula tising Age, will showcase provoca- Call 248-223-9400 to learn more tive thinking and workable busi- ness ideas on reinventing the city. or go to bbb.org The other keynote speakers are Mike Jbara, president and CEO of New York-based music label WEA Corp.; Rob Weisberg, chief market- ing officer of Cambridge, Mass.- based Zipcar Inc.; and Erik Qualman, author of Socialnomics. Panel speakers include the Rev. Barry Randolph of the Church of the Your Bank’s Messiah, Corktown investors Angel Gambino and Scott Griffin, Kiva Detroit founder Rishi Jaitly and Joe Faris, co- founder of Fashion in Detroit. Not Lending? Call (313) 446-0300 to register for the event. Registrations also can be made at the door. The cost is $85 to $125, depend- ing on affiliations and whether at- tendees are Crain’s subscribers. More information can be found at www.crainsdetroit.com/events.

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Page 8 CRAIN’S DETROIT BUSINESS March 5, 2012 OPINION LETTERS Studio’s risk lands Learn from world history Editor: thankful to politicians who protect Crain’s Detroit Business In response to Joe Vig (“Other the standard of living and safety welcomes letters to the editor. regulations that we have taken so Voices: How we’re killing our own All letters will be considered for democracy,” Feb. 27), why should publication, provided they are long to put in place. on state retirees we be any different than the signed and do not defame We do not underestimate the Greeks or the Romans? individuals or organizations. contributions of academia in ad- The Greeks failed because they vances in production, safety and, t looks like owners of the now-vacant film production stu- Letters may be edited for length lacked a centralized government: and clarity. yes, management techniques their dio in Pontiac may stick it to the State of Michigan Retire- studies put in place. Each city-state went its own way Write: Editor, Crain’s Detroit ment System. Right-wing radio notwithstand- I (local government control). The Business, 1155 Gratiot Ave., As we report on Page 1, Raleigh Michigan Studios paid only Romans failed for the opposite rea- Detroit, MI 48207-2997. ing, history seems to indicate that son: Their emperors wanted to unity need not rely on an entrepre- $210,000 of a $630,000 interest payment on $18 million in bonds Email: [email protected] control the whole world and make neurial dictatorship. that was due in February. The retirement system guaranteed everyone a Roman citizen (nation Larry Giroux the bonds, which is why it’s on the hook. Another payment is building). Director of training Entrepreneurs don’t United Association due in August, and unless the state — or maybe Gov. Rick Sny- I don’t think the answer is less Pipefitter’s Local Union No. 636, Detroit der — renews support for more-generous film tax credits, the government or more government. succeed in a vacuum owners likely will skip that payment, too. The answer is responsible govern- Editor: Why not local talent? Think of it as a game of high-stakes poker: The wealthy ment. Bob Sibley from White Lake I believe the way to get it is to Township made a couple of inter- names behind Raleigh — A. Alfred Taubman, John Rakolta Jr. Editor: have term limits (a maximum of esting points in his letter, “Unions Your story on the Museum of and company CEO Linden Nelson — seem to be holding bond eight years would be my recom- drive divisiveness” (Feb. 20). His Contemporary Art Detroit’s major payments hostage in exchange for higher state incentives to mendation for any elected offi- main point is clear: “The positive renovation (“MOCAD plans for produce films. cial). answers we need for Michigan’s new look, has $450,000,” Feb. 27) Yes, the state changed its policy since Raleigh opened. But We have the right to change the economic growth will not come was incomplete. system. At present, the only ones from politicians, or academia, but the investors, who also include co-CEO Ari Emanuel, brother While the renovation is good for whom it is working are those instead from entrepreneurs.” He news for Midtown, it is not such to Chicago Mayor Rahm Emanuel, are experienced enough to in office. Like the Greeks and Ro- goes on to point out that our only good news for the image of De- have seen that as a risk to the project. mans, our leaders are more inter- answers lie with those who take troit. There is no explanation why Adding insult to injury is the fact that the retirement sys- ested in protecting their privileges monetary risks. MOCAD went to New York to en- tem can’t go after the studio owners for reimbursement on than protecting our desire “to I suppose it was the unions, gage architectural firms to do the form a more perfect union, estab- politicians and academics that delinquent payments until 2017. That’s because the bonds planning and design, thus giving lish justice, ensure domestic tran- caused the high number of bank- them the opportunity to exploit were used to create eligibility for federal tax credits that pre- quility, provide for the common ruptcies, without any bad manage- their commissions on their Web vent the pension fund from taking action against defaulting defense, promote the general wel- ment decisions. pages. borrowers for seven years from the project’s start in 2010. The fare, and secure the blessings of In my trade, we appreciate get- Detroit certainly has architects pension fund doesn’t get the credits, either. liberty to ourselves and our pos- ting a paycheck every week and and designers of equal if not the risks our contractors take to This is a year in which many voters are sensitive about terity.” greater talent who could do the It is up to “we the people” to make that happen. Our contrac- job. Somehow, we always find a wealth and rules and who seems to always come out on top. make democracy work — and his- tors appreciate the fact that we way to shoot ourselves in the foot. And the lesson from Raleigh could well be: Rich people can tory reminds us that it takes work. risk our health and life to create Lois Cohn create businesses that, if they fail, will still leave them rich. John Keeler the wealth that they are then able Avern Cohn It’s for other people — state retirees, for example — to pay the Livonia to manage and share. We are Detroit economic piper. Maybe that’s why rich investors manage to stay rich. Pension billions too tempting TALK ON THE WEB From www.crainsdetroit.com Pension board trustees overseeing retirement fund assets Re: Ficano touts record in speech member their lack of support for for retired city of Detroit workers are “shocked, shocked” to Reader responses to stories and Someone who turns a blind eye, blogs that appeared on Crain’s the regional design community learn of alleged kickbacks. or otherwise does not know what website. Comments may be and the local economy if they jump They shouldn’t be. After all, pension board operations have is going on in his own administra- edited for length and clarity. on the zoo’s and DIA’s bandwagon no ethics policies — and there are more than $3 billion in as- tion, should not be occupying the of- looking for a regional millage for financial support. sets that need to be invested. fice of Wayne County executive. York is the place to go for good de- sign, if they had to look that far RobertArch The outright kickbacks Kwame Kilpatrick’s former city The people of Wayne County have a long memory. away for design firms for their treasurer is accused of seeking have yet to be proven in Richard Cooper project. If that is the case, I think Re: $2M federal transit grant court, but they would be another example of public officials we should all boycott them and go to How many millions of dollars the Museum of Modern Art in New treating their offices as licenses to enhance their own net Re: MOCAD plans for new look and years of committee studies, worth. York if we want to view good Apparently MOCAD thinks New works of art. Let’s hope others re- See Talk, Page 9 KEITH CRAIN: Packard demolition sad but necessary I noticed a small story last week then, considering it had across the landscape of when we are talking about our ably would love to have available that the owner of the old Packard been abandoned for a Detroit for several hometown icons. But it’s impor- large parcels of land for construc- automobile plant in Detroit has couple of decades. I re- miles. tant to realize that all too often we tion of new manufacturing plants plans to tear it down. member walking into It wasn’t that long wait way too long to understand that could offer jobs to unem- All 3 million square feet of con- what was once the presi- ago that everyone was that they’ve got to go. ployed Detroiters. crete and steel will fall under dent’s office and wish- up in arms against tear- Right now, without any emo- I think, like so many friends, we wrecking balls and sledgeham- ing that the walls could ing down the old Briggs tion, we have to get on with the job have to mourn the loss of some of mers in coming months. I assume talk. field where the Detroit of tearing down and removing our great monuments. But once we a project like this will require a lot Detroit is losing an- Tigers as well as the Li- buildings and houses that are shed a tear, let’s not waste time more than a couple of months. It other great landmark. ons played for many nothing more than rat traps in De- worrying about yesterday. We could easily take a year or more. I remember when years. troit. We still have millions of dol- need to rebuild our city for the fu- It’s not a place that many people they blew up Hudson’s The same went for lars of federal money available to ture. have ever been, but I once had the downtown. People made Ford Auditorium and, eliminate this blight. It is wonderful to remember our opportunity to get a tour long after a party of it, but the dust from the even earlier, Olympia, home of the It doesn’t matter what we do favorite brands and buildings. But the plant had closed. collapse of the vacant department Red Wings for quite a while. with the reclaimed land. The De- as with everything else, it’s time to It was in remarkable condition store became a dust cloud that ran We all hate change. Particularly troit Economic Growth Corp. prob- think about tomorrow. 20120305-NEWS--0009-NAT-CCI-CD_-- 3/2/2012 11:38 AM Page 1

March 5, 2012 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Don’t ignore our problems – or heroes

It’s hard to watch local TV news- African American His- young people to start ered to capture short videos of network is likely to grow. casts. The reports too predictably tory last week as 10 and understand busi- black men talking about them- It’s easy to overlook everyday lead the news with stories of the black men were hon- nesses, showing young selves, their lives and what they people making a difference in latest mayhem visited on children ored with the first black men how to be- did to help their communities in cities like Detroit. But as Shorters in Detroit — another baby killed, “Black Men Engage- come better fathers. small and large ways. told the audience last week: “We’re another child shot by stupid thugs ment” awards. (I’m new- “This is not doing The result: More than 1,000 not going to ignore the trouble in in their teens. ly appointed to an advi- something nice, patting black men — business owners, col- our cities. We’re just going to stop (Suburbs aren’t immune from sory committee for John people on the back,” lege students, dance instructors, ignoring these guys. It takes men violence against children. A Ma- S. and James L. Knight said Knight’s Trabian event managers, barbers, pastors, like these to make men like these.” comb County woman, upset over Foundation projects in Shorters. “This is about firefighters and scores of others — And it’s clearly a process worth re- toilet-training mishaps, was con- Detroit.) the choices you have, are featured on the website, peating. victed last week of killing her step- The program, created the opportunities you www.BMEchallenge.org. Mary Kramer is publisher of daughter.) by the Knight Founda- can make. You’ve got to Detroit City Councilman James Crain's Detroit Business. Catch her Shootings, disregard for life, tion and the Open Society Founda- tell these stories.” Tate suggested that somehow take on business news at 6:10 a.m. atrocious and criminal parenting. tions, will split $200,000 in grants And the BME project has sto- those 1,000 men be tapped for a Mondays on the Paul W. Smith show This is part of our reality. And in among the 10 men to propel the ries. Video crews from the project kind of summit. That may happen, on WJR AM 760 and in her blog at Detroit, violence and bad schools work they were already doing: roamed the city last year, attend- but meanwhile, the 10 award win- www.crainsdetroit.com/kramer. have spurred many to leave who teaching kids to read, helping ing events where Detroiters gath- ners are connected now, and their E-mail her at [email protected]. can afford to leave. And that means people without means and education are left behind. Yet it was hard to feel hopeless at the Charles H. Wright Museum of

TALK CONTINUED A LOAN WITH ■ From Page 8 task forces, presentations and promises will it take to learn our lesson? SMART isn’t smart. … Tell Lansing and local government to unshackle the free market and you’ll be surprised at how quickly two good things happen: much better service for customers and much lower cost for taxpayers. rocwen

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(This is a case of) no recourse for the individual, a slap on the wrist of the lender, and probably no one at Flagstar held accountable for crimi- nal activity. john md

Re: Regional tax for DIA I opposed the zoo tax and will op- pose the DIA tax. I have nothing against either institution, but why can’t they charge the users an ade- quate fee to fund their operations, or cut their expenditures to meet their revenue? RobertArch

Other museums use the finan- cial value of their collections in supporting their operations, and the DIA’s collection — which is worth many, many billions of dollars — can support its operations, too. Mark White 20120305-NEWS--0010-NAT-CCI-CD_-- 3/2/2012 11:05 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS March 5, 2012 20I2 DETROIT TIGERS Appraisal bill would add oversight

BY MIKE TURNER liable for the misdeeds of agents are filling. The intent is to protect INDIVIDUAL SPECIAL TO CRAIN’S DETROIT BUSINESS who work for them, said O’Brien, appraisers from being pressured to who’s also a Realtor. value properties high enough to en- LANSING — A bill before the “It allows for a level of account- sure sales go through, a common state House Banking and Finan- ability,” she said. “If the (appraisal complaint during the real estate TICKETS cial Services Committee would management company) knows they boom of the 1990s and early 2000s. regulate a segment of the appraisal are going to be on the hook, then Now, however, some members of ON SALE NOW industry that has gained in stature (they are) going to be more aware of the industry contend many ap- because of financial industry re- who they send out where.” praisals are undervaluing proper- form — although it’s expected to The bill is backed by the Michi- ties, causing deals to fall apart. have limited impact on tensions gan Association of Realtors and Kathie Feldpausch, senior vice between real estate agents and ap- the Michigan Bankers Association. president of operations for the Re- praisers over home valuations. “It’s at least a first step in clean- altors’ association, said among the House Bill 4975, sponsored by ing up some of the practices that complaints are that appraisers of- Rep. Margaret O’Brien, R-Portage, have driven values down,” Ward ten are assigned to markets they would define, regulate and set said. “It’s not going to take care of are unfamiliar with; that they lack penalties for appraisal manage- every situation, but it will address access to a region’s multiple listing ment companies, businesses that some of the things.” service, which contains the most act as go-betweens for appraisers For example, Ward said the leg- extensive property data, and in- and lenders. Loan officers are pro- islation makes appraisers more ac- stead rely on limited public hibited from dealing directly with countable and helps ensure at least records such as deeds that may not appraisers, so lenders contact the some level of competency. contain enough information to ade- management companies, which as- Ken Chitester, spokesman for quately evaluate a house; and that sign jobs to appraisers. the Chicago-based Appraisal Insti- they face deadlines that don’t allow THRILLING MATCHUPS AND THE NEWEST TIGER, The bill, introduced in Septem- tute, said 30 states now have laws for thorough analysis. ber, is expected to receive commit- regulating appraisal management There are also tensions between PRINCE FIELDER tee approval and move before the companies. appraisal management companies entire House this month, said “Generally speaking, we at the and appraisers over fees. Brad Ward, director of public poli- Appraisal Institute strongly sup- In general, however, lower prop- cy and legal affairs for the Michigan port these measures,” he said. erty evaluations are simply an ac- Association of Realtors. Jeff Schurman, former execu- curate reflection of the market- The federal Dodd-Frank Wall tive director of the Title and Ap- place and have little to do with how Street Reform and Consumer Pro- praisal Vendor Management Associa- the appraisal industry is regulated, tection Act of 2010 requires state tion, a Wexford, Pa.-based Chitester said. (866) 66-TIGER regulation of appraisal manage- organization that represents ap- The Michigan Association of Re- ment companies. praisal management companies, altors in 2010 bought its own ap- The bill would place the compa- said the industry doesn’t object to praisal management company, nies under Department of Licens- regulation of its members. Midwest Appraisal Management TIGERS BOX OFFICE ing and Regulatory Affairs over- However, it is advocating for a Group Inc. of Kalamazoo. sight and require them to pay an single, federal system rather than The intent was to create a gold (NO OUTLET SALES) annual registration fee of $250. state-by-state oversight. standard for how a management The bill would also require ap- Federal banking reform has company should operate, Feld- praisal management companies to boosted the importance of ap- pausch said, adding that the com- hire only licensed appraisers and praisal management companies by pany is careful to “preserve the retain any liabilities arising from requiring a “firewall” between ap- arm’s-length” arrangement be- an appraisal. That’s similar to the praisers and lenders — a position tween appraisers and real estate way realty companies can be held appraisal management companies agents.

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March 5, 2012 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Tom Henderson covers banking, CRAIN’S LISTS finance, Intellectual property law firms, technology and biotech firms, Pages 17, 18 biotechnology. Call (313) 446-0337 or write thenderson @crain.com. innovations Tom Henderson URC not alone in driving tech The University Research Corridor is something some university types love to hate, or at least dislike. In 1999, Michigan approved legislation creating what was then called the Michigan Life Sciences Corridor, to boost research at Michigan State University, Wayne State University and the University of Michigan. In 2006, it morphed into the URC. The name may have changed, but one constant was the disdain felt by other university presidents at being left out. I remember the look on his face when I asked John Dunn, the president at Western Michigan University, about the URC a couple of years ago. It was great the state wanted to fund early-stage technology, but Dunn wondered why it would pick winners and losers. WMU may have been overlooked in Lansing, but it hasn’t been overlooked by investors. Since 2003, there have been more than three dozen successful life science startups in the Kalamazoo area, many with WMU affiliations. Company’s 3-D The Kalamazoo area boasts Southwest Michigan First, one of the breast cancer top economic development organizations in the state; the Southwest Michigan Innovation ultrasound nears Center, a tech incubator; more than 200 life science companies; and a strong network of angel investors. marketplace BOB CHASE Officials at Michigan Technological CEO William Greenway says human trials of Delphinus Medical Technologies’ breast cancer University in Houghton were annoyed, BY TOM HENDERSON ultrasound machine, shown in prototype, will begin soon at Barbara Ann Karmanos Cancer Institute. too, at being ignored by Lansing. In CRAIN’S DETROIT BUSINESS 2010, to commemorate its 60th “Delphinus” is Latin for dolphin. in sight of the medical marketplace after birthday, the National Science elphinus Medical Technologies Inc. has With Delphinus technology, a woman more than $19 million in R&D spending. Foundation compiled a list of its top 60 at last neared the end of its long and lies face down on a platform that has a About $6 million of that was from pri- scientific discoveries or advances. One was the Center for Wireless Integrated D costly journey toward commercial- hole cut in it for the breast. The breast is vate donors and the rest from a variety Microsystems, a 10-year project ization. immersed in warm water and surround- of state and national funding sources, involving Michigan Tech, MSU and UM After more than 12 years and nearly ed by an ultrasound ring that sends including the National Institutes of Health, that resulted in a wide range of sensor- $30 million in R&D grants and venture sound waves through the tissue. the National Cancer Institute, the Michigan based devices and spinoff companies. capital funding, there is light at the end Ultrasound technology researchers Economic Development Corp. and the Su- A new $2.4 million grant from the of the tunnel in the form of revenue it and their financial backers say such ex- san G. Komen Breast Cancer Foundation. Michigan Economic Development Corp. hopes to begin generating at the end of ams can potentially reduce the percent- In July 2010, the Michigan Economic perhaps better acknowledges the this year or early next year from a de- age of false positives and unnecessary fol- Growth Authority granted Delphinus a breadth of university research in the vice that uses 3-D ultra- low-ups. They also eliminate the risk of state tax credit of nearly $780,000 over state. The grant creates a Tech ORE INNOVATORS sound images to detect radiation in traditional mammography five years to expand in Michigan. The Transfer Talent Network and includes M breast cancer more accu- — and the pain and discomfort women grant said Delphinus was expected to UM, MSU, WSU, Michigan Tech, WMU, Nanocerox: rately than traditional experience by having their breasts com- create 109 direct jobs and 536 indirect Grand Valley State University and Maker of ceramic mammography. pressed during the procedure. jobs. It currently occupies 5,000 square Oakland University. The goal? To powders gets help Plymouth Township- The market opportunity for Delphi- feet and employs 19. It also uses about 30 increase the supply of seasoned to grow, Page 13 based Delphinus is a for- nus got a huge boost in 2009 when the engineering consultants. entrepreneurs to help startups evolve Spider9: Tech profit spinoff from the U.S. Preventive Services Task Force rec- The company, officially launched in into for-profit companies. monitors power Barbara Ann Karmanos ommended against annual mammogram November 2009, garnered nine patents That will be done through a database systems, Page 14 Cancer Institute. Its in- screenings for women 40-49 because of for its technology while still in R&D at that will include alumni who might be BioLumix: Quick vestors and executives the risks associated with false positives. Karmanos. It has applied for five more willing to help with time or funding; test results boost say it’s on track to win Greenway said the installation of the patents since being spun out. consultants, mentors and business- business, Page 15 approval from the U.S. device at Karmanos will trigger a sec- Joining in the first round of venture coaching volunteers; information on ApoLife: Yeast vs. Food and Drug Administra- ond venture capital funding round later capital were Ann Arbor-based Arboretum economic-development programs; and cancer, Page 16 tion to begin selling its this year. Ventures LLC, Ann Arbor-based North Coast access to investors. devices late this year. “We’re looking at a $15 million Technology Investors LLC and Farmington “Talent really moves technology According to company CEO William round,” he said. “A big piece of it will go Hills-based Beringea LLC. Beringea’s in- forward in the marketplace,” said Ken Greenway, the company will install its into sales and marketing. And we’ll use vestment came from the state’s $185 mil- Nisbet, executive director of the UM first commercial machine at Karmanos some of it to add features and functions.” lion Invest Michigan Growth Capital tech transfer office. in April to begin human trials, with In May 2010, Delphinus got its first VC Fund it co-manages with Credit Suisse. His office will also provide schools FDA approval to follow should those tri- round of $8 million, which allowed it to Last November, Delphinus’ co- with advice learned over the years. als go as expected. Karmanos won’t pay spin off from Karmanos, where a rudi- founders, Neb Duric and Peter Littrup, Last year alone, UM spun out 11 for the machine but will use it to gener- mentary prototype machine had been M.D., were honored as innovators of the startups — including setting up ate data for the FDA. built and tested. It became a tenant of year at the seventh annual MichBio Expo postdoctoral programs that encourage The approval process is quicker for a the Michigan Life Science and Innovation in Grand Rapids. startup activity and establishing device such as Delphinus’ because it Center, a tech incubator in Plymouth Based on comments from Paul Mc- mentor-in-residence programs. doesn’t involve invasive or dangerous Township that is a joint venture of Creadie — a managing director at Ar- procedures. Ultrasound technology is Wayne County and Ann Arbor Spark. well understood and considered safe. That funding finally put the company See Cancer, Page 12 20120305-NEWS--0012-NAT-CCI-CD_-- 3/2/2012 10:05 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS March 5, 2012 Focus: Innovations Cancer: New technology ■ From Page 11 boretum, which was the lead in- are at most risk. Sales to the market vestor in the first round — raising a could begin late in 2013, he said. second round shouldn’t be a chal- Greenway said the eventual plan lenge. is to be acquired by a large imaging “They’ve done a great job in the OEM, which is when the investors last 18 months of developing a will make their return. commercial version of the device. “We’ve been in fairly detailed dis- I’m extremely pleased with their cussions with some already that I progress,” said McCreadie, who can’t name,” he said. “It wouldn’t be serves on Delphinus’ board. unusual for one of them to take a “They’ve really improved on the stake in our B round and ultimately foundational prototype. They ca- buy the company.” pabilities they added make it Greenway previously worked for faster, with better image resolu- New York-based General Electric Co., tion. It’s really exciting.” and Massachusetts-based Hologic When Delphinus got its first Inc., (Nasdaq: HIOLX), both major round of funding, its milestone manufacturers of medical imaging goals called for it to have a com- devices. mercial version of a device in- Andy Smith, physicist and vice stalled at Karmanos in January. In president for imaging science at Ho- the world of medical-device com- logic, said his company and others mercialization, being just three that have marketed ultrasound months behind original projec- equipment for breast cancer detec- tions is good news. tion use hand-held devices that re- “They’re a few months behind quired a trained technician to inter- where they hoped to be, but these pret. Delphinus’ technology uses things often are more complicated software to interpret the images au- than conceived of,” said McCread- tomatically, which has the potential ie. “The issues were worrisome. It to make diagnoses quicker, more was just a matter of working with accurately and without the need for vendors to get the system finished a trained technician. and put together.” Smith said there are several Components such as circuit emerging high-tech alternatives to boards and transducers are built what he called the current gold stan- in Ohio and Oregon. dard of traditional mammography. Milestone goals also called for A year ago, Hologic obtained FDA Delphinus to build up its senior approval to sell what it calls a to- management team and technical mosythesis, which used X-rays to staff, and McCreadie says it has produce a 3D image that he says done that, too, particularly by give better accuracy and fewer false adding John Dahler as CFO. Previ- positives than traditional mammog- ously, Dahler was CFO at Accuri Cy- raphy. tometers Inc., a University of Michi- And he said there are systems gan spinoff that was sold to New that use magnetic resonance imag- Jersey-based Becton, Dickinson and ing, but they are very expensive Co. last February for $205 million. and tests are time consuming, Greenway said his machines which will limit their market pene- will list for about $400,000. He tration. hopes to sell 10-12 next year. UM’s Comprehensive Cancer Center “Ultimately, the market is quite is also working on an ultrasound large,” he said. “In five or six years, device in conjunction with General we certainly think we’ll be selling Electric Global Research and is in the hundreds of systems a year.” ninth year of a $13-year, $10 million The first application will be to de- NIH grant. After the grant expires, tect existing cancers. A second mar- UM will decide whether to spin off a ket, which will require more testing for-profit company. and further FDA approval, will be Tom Henderson: (313) 446-0337, in the screening market, to analyze [email protected]. Twitter: breast tissue to see which women @tomhenderson2

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March 5, 2012 CRAIN’S DETROIT BUSINESS Page 13 Focus: Innovations Powder power: Nanocerox grows with help of national partners

BY TOM HENDERSON scintillators, which are used in department and began recruiting commercialization partner. CRAIN’S DETROIT BUSINESS high-energy radiographic imaging engineering technicians and Nanocerox produces the very best devices and in radiation detectors. comptroller Kim Kochan, who had nanopowders in the world, so it Nanocerox Inc., a little company They can be used at airports and at been CFO at HandyLab Inc., an Ann makes sense for us to help them in Pittsfield Township, has two border crossings to detect illegal Arbor-based medical device com- convert their powders into optical mighty partners in its efforts to di- nuclear materials. pany that was sold for $275 million products for purchase. They’re versify and grow: a national labo- Scientists at Lawrence Liver- in 2009 to New Jersey-based Becton, poised to take advantage of what ratory that is considered one of the more are now helping Nanocerox Dickinson and Co. could be a very big market with no world’s best research facilities, expand its business by becoming Kelly said he expects revenue to U.S. competitors,” she said. and the U.S. Air Force. not just a supplier of powders to its hit $2.8 million this year. Cherepy said she has been try- A spinoff from the University of manufacturing customers, but by Gray Swanson Nerine Cherepy, a research sci- ing to get officials at the European Michigan, Nanocerox supplies using its powders to make prod- entist at Lawrence Livermore, be- Organization for Nuclear Research in Lawrence Livermore National Labora- ucts. By mid-year, the company the company in 2002, took over gan research with ceramic oxide Switzerland interested in ceramic- tory in Livermore, Calif., with ce- hopes to be making small ceramic management and changed the powders in 2005, having bought a oxide crystals because of their im- ramic oxide powders that — be- discs used in the commercial laser name to reflect what it does. small furnace from a supplier in proved qualities. The organization, cause of their tiny nanoscale market and pieces of transparent And what it does is use high-tech Switzerland that allowed her to known as CERN, is the largest par- dimensions — can be made into ex- armor that can be tiled to make furnaces to heat rare earth metals make a few grams a day. ticle physics lab in the world and tremely hard crystals with useful fighter aircraft windows more im- to 900 degrees centigrade, produc- “Our very first batch made beau- includes the Large Hadron Collid- optical properties. pervious. ing powders with a diameter of tiful transparent ceramics, but we er, a mammoth underground parti- The transparent ceramics are In August, Nanocerox, which from 20 nanometers to 75. A human couldn’t ramp up our production,” cle accelerator. used in the lenses of the guidance employs 18, won a $2.5 million hair is about 100,000 nanometers she said. Some colleagues had Massachusetts-based Raytheon systems of drone airplanes and the grant from the Air Force to help it wide. heard about Nanocerox, and she Co. is also helping Nanocerox as it nose cones of missiles. They have scale up production to meet the Last April, Gray and Swanson placed a small order to see if it tries to ramp up production, ac- the potential to be used to detect ra- needs of an undisclosed missile brought in Michael Kelly as presi- could augment what she was mak- cording to Rick Gentilman, an en- diation, provide for better imaging system. dent and CEO to continue the job ing. “Little by little, the relation- gineering fellow in advanced tech- in medical imaging devices, tough- Nanocerox, which has four they’d started. By then, they’d ship has grown. We ordered larger nology at Raytheon. en up military armor and even patents, was founded in 1996 as TAL grown revenue from about $150,000 and larger batches, and now we’re Nanocerox has been a subcon- make paint more durable. Materials Inc. by Richard Laine, a when they bought the company to getting batches of many kilo- tractor to Raytheon on a four-year, “This is truly an enabling tech- professor in UM’s Department of about $2.5 million, and had diversi- grams.” $15 million contract from the U.S. nology. It has a very bright future,” Materials Science and Engineer- fied it from a total reliance on gov- As Nanocerox has helped Defense Advanced Research Projects said Steve Payne, associate pro- ing. ernment funding to a 50-50 mix of Lawrence Livermore with its pro- Agency to design nanocomposite gram leader at Lawrence Liver- It began to morph from what was government grants and contracts, jects for the U.S. Department of materials that make better, more. He said Nanocerox’s technol- basically an R&D company exist- and private sector sales. Homeland Security, the Department of stronger windows for automated ogy allows crystals to be grown ing on government grants to a com- Kelly — former president and Defense and the Department of Ener- guidance systems on such things much faster and in various shapes. mercial enterprise when two veter- CEO at Allied PhotoChemical Inc., a gy, now it’s time for the national as nose cones and drone airplanes. Lawrence Livermore’s focus has an venture capitalists in Ann Warren-based maker of coatings lab to help Nanocerox. Tom Henderson: (313) 446-0337, been to use Nanocerox’s powders Arbor, Peter Gray and Steve Swan- and paintings — upgraded and ex- Lawrence makes prototype prod- [email protected]. Twitter: in developing transparent ceramic son of Arbor Partners, invested in panded Nanocerox’s production ucts and materials, “but we need a @tomhenderson2

;5 20120305-NEWS--0014-NAT-CCI-CD_-- 3/2/2012 10:01 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 5, 2012 Focus: Innovations Spider9’s technology helps customers keep the power flowing

BY TOM HENDERSON tal firm in Chicago, to ramp up tential. crazy when one bad panel or one Moorehead said Earl Energy will CRAIN’S DETROIT BUSINESS commercialization; and, through “He brought Glynne in, and we bad battery cell has a cascading ef- be a small-volume customer at first, the Michigan Economic Development just got out of the way. We said, fect on system performance. as Spider9 begins to roll out prod- A year ago, Ken Nisbet, execu- Corp., in November got $1 million in ‘Great! Get going,’ ” said Nesbit, re- At the heart of Spider9’s system ucts. Moorehead expects to become tive director of the tech transfer of- various state incentives and a $5 ferring to Glynne Townsend, a vet- is a sensing and monitoring mod- a high-volume purchaser if the fice at the University of Michigan, million, low-interest loan from eran of Massachusetts-based A123 ule that tracks voltage, amps and technology works as intended. He thought a technology centered Huntington Bank. Systems Inc., who had just started a temperature and can detect panels said he will also provide guidance around power managment that had It also hit a real estate milestone: consulting firm. or individual battery cells as they on pricing. recently been developed at the engi- It built out 7,000 square feet of space Townsend liked the technology, are going bad so they can be re- Townsend also said he has two neering school might have some in a former Ford Motor Co. valve fac- too, and put his consulting busi- placed or attended to. In case of fail- other major industry customers he commercial promise. tory in downtown Northville that is ness on hold to ure, power can bypass those failed can’t disclose. Once the technology He figured that by now, early in on the National Register of Historic become CEO. parts so the system can continue to gets the expected validation later 2012, if things came together, it Places and moved into its new digs Park is COO, operate. this year, Townsend said Spider9 might be the basis of a company be- in January. It employs nine and and joining The “Spider” part of the business will need a B round of venture capi- ing nurtured in the technology in- uses another 16 contractors to de- them are two name comes from the web-like con- tal funding to ramp up manufactur- cubator at the school’s North Cam- velop software to monitor and con- other veterans of nections the company uses to link ing and marketing. pus Research Complex. trol electrical systems. the battery and solar panels in the field. The “9” The company is awaiting final He thought wrong. Not about the Late in February, Spider9 began power-genera- comes from research that shows approval from the Historical Soci- potential, but about the pace of receiving the first shipment of tion industries: that a number attached to a name ety in Northville to install a 1,000- progress. A company was formed products from vendors in Holland: David Smith, makes it easier to remember. all right, but it didn’t need any in- racks about 5½ feet tall and 4 feet who had worked Martin Dober, MEDC senior vice panel, 85-kilowatt solar array on Townsend cubation. wide that house battery cells to with Park at Ex- president for entrepreneurship and the roof of its historic building. Spider9 Inc., which makes control help power commercial businesses. ide, as chief technology officer; and innovation, said Spider9 is expect- The array, which will be hidden systems for power generation The packs can reduce electricity us- Bill Beckman, who had worked at ed to be a “ a great asset in the re- from view from the street, will equipment for commercial build- age at peak billing times and even Johnson Controls, as CFO. The com- newable energy and entrepreneur- serve both as a test bed for prospec- ings and for solar arrays on feed excess power back into the bination of promising technology ial community” in Michigan. tive customers and to provide pow- rooftops and in the field, has grid to generate revenue or reduce and experienced leadership got the “We’re very excited about the po- er to the building. leapfrogged from interesting con- utility costs. state on board as well. tential of using the Spider9 technol- The company has begun generat- cept to a charge-ahead for-profit A three-rack system can produce The problem Spider9 solves for ogy to reduce the size, mass and ing a small amount of cash flow, company. It now has major funding 72 kilowatts of electricity. For now, large arrays of solar panels in the cost of our energy management sys- mostly from engineering services, and is lining up large customers. the company will use the racks and field, or large connections of bat- tems,” said Doug Moorehead, presi- but projects a rapid increase as The company, which has li- their control systems as proof of tery cells to power a commercial dent of Virginia-based Earl Energy work picks up. censed three patents from the engi- concept for would-be customers. building, is analogous to solving LLC, which supplies off-grid energy “In five years, we think we’ll neering school, found an angel in- Last year, David Park, a veteran the problem of what happens when generation and management sys- have revenue in the $250 million vestor in Holland, Mich. to provide of five startups and one of Spider9’s one bulb on a Christmas tree goes tems to the U.S. military. Moore- range,” Townsend said. seed funding; landed a seven-figure four co-founders, was helping the out. Just as it drives homeowners head was formerly a systems man- Tom Henderson: (313) 446-0337, investment last September from Ad- tech transfer office evaluate tech- nuts to try to find the bad bulb, it ager at A123, where he worked with [email protected]. Twitter: vanced Equities Inc., a venture capi- nologies for their commercial po- drives managers of power systems Townsend. @tomhenderson2

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March 5, 2012 CRAIN’S DETROIT BUSINESS Page 15 Focus: Innovations BioLumix tests help companies keep products free of bacteria Do the BY TOM HENDERSON Hall, quality manager at Premier Re- CRAIN’S DETROIT BUSINESS search Labs LLC, a Texas-based mak- er of dietary supplements and vita- Mike Uckele — CEO of Blissfield- mins. Right Thing based Uckele Health and Nutrition “When you get a false positive, it Inc., a fast-growing maker of vita- puts a wrench into the whole mins and nutritional supplements process,” said Hall, who has been for people and animals — got a far using BioLumix for three years. faster return on his investment “You have to go in and make sure Ethos Week than he ever imagined when he be- you don’t have a problem. With Bi- came the first customer for Ann Ar- Gideon Eden Ruth Eden oLumix, we don’t have that prob- bor-based BioLumix Inc. three years lem anymore.” March1-1 ago. mated testing equipment to the nu- She said BioLumix has cut the BioLumix sells an automated traceutical, pharmaceutical and time from testing individual sam- system for detecting a wide array of cosmetic industries. Nutraceuti- ples from five to seven days to 24 contaminants, including E. coli, cals are food products with pur- hours for most contaminants and cob.emich.edu salmonella, staphylococcus, col- ported health and medical benefits. 48 hours for yeast and mold. iform bacteria and mold. She is president, he is CEO. The “Another thing about their sys- The technology, which has been two met when they were doctoral tem is it’s just so simple. You don’t granted five patents and has one students at Technion Israel Institute have to be a biochemist,” she said. pending, is based on monitoring of Technology. They moved to the Jim Paul is director of plant op- changes in a liquid medium in U.S. in 1980, he to take a research erations for All American Pharmaceu- which target organisms grow. If or- position at the Massachusetts Insti- tical Corp. of Billings, Mont. His ganisms are present in a sample, tute of Technology, she to take a job firm does all of its testing in house, they will begin growing in the at the U.S. Army’s Natick Research and replacing petri dishes with an medium, known as a reagent, and Development Command in New automated system has led to sav- which changes its color and fluo- Jersey. ings of money and time. rescence as they grow. An optical Later, they moved to Michigan to He said his company still has to sensor monitors the changes. take jobs at Detroit-based Difco Lab- use the old system for some things The day Uckele got his first sys- oratories Inc., a maker of microbio- BioLumix doesn’t currently offer tem, his company, which has been logical supplies that subsequently tests for, but he will switch as those WJR’s Paul W. Smith on the Inc. 500 list of fastest-grow- was bought by New Jersey-based tests become available. ing private U.S. companies for Becton, Dickinson and Co. In 2006, Current revenue for BioLumix, EMU’s David Mielke three years, had just received a they decided to start their own which began generating income in large shipment of a product that company. 2009, is about $2.5 million and grow- would be incorporated into a sup- “I was introduced to Ruth and ing rapidly, according to Gideon plement for human use. Gideon by a mutual friend when Eden. A major driver of growth will The supplier had certified that they were forming the company,” be the recent focus by the U.S. Food the product had tested clean, but said Uckele. and Drug Administration to make sure when Uckele ran it through the Bi- He said working with BioLumix the nutraceutical industry docu- oLumix system, it tested positive has allowed his company to work ments testing on its products. for E. coli. more efficiently. Before buying Bi- To date, the company has been “We called the company, and it oLumix equipment, his company funded by a few angel investors and insisted the product was clean. We sent samples out to independent the Edens. The company, which is didn’t know; we thought maybe the labs for testing, which was expen- profitable, has outgrown its space BioLumix equipment wasn’t work- sive and time consuming. on the west side of Ann Arbor and is looking for a larger facility. It ing right. So we sent it out to an in- “When you do that, you test few- currently employs 13 and is hiring dependent lab. Sure enough, it test- er things,” he said. microbiologists and help for the ed positive for E. coli,” he said. Traditional testing involves shipping department. Uckele said he is such a fan of Bi- growing cultures in a petri dish. In “We just hired a shipping super- oLumix that he lets the company addition to time and expense, it’s a visor,” Gideon Eden said. use him in promotional materials. process that lends itself to false pos- Eden said they are trying to de- Spouses Ruth and Gideon Eden itives, which can bring a needless cide whether to have slower founded BioLumix to provide auto- halt to production, said Andrea growth funded internally or to ap- proach the VC community to fund larger growth. Now, BioLumix farms out manu- facturing of its optical sensor to an INTELLECTUAL PROPERTY ATTORNEYS Israeli company and has a vendor

in Ontario supply the plastic vials. The vials and the reagents that fill

them are the key to profitability, creating a recurring revenue stream, Eden said. They are not just “ Arcadio Ramirez, a technology business consultant based in Ann “patent lawyers, but Arbor with the Michigan Small Busi- ness & Technology Development Cen- ter, is trying to connect the Edens to our trusted advisors. state programs that could help them bring their manufacturing ei- ther in house or to a Michigan firm. JAMES SCAPA, CEO Altair Engineering “I’m trying to get them some money,” he said. “There’s some grant support for tooling they might be able to get. YOUNG BASILE. Advisors to the world’s most innovative companies. They have a very cool business... They don’t make much money on their machinery, but the sale of reagents is like an annuity. ANN ARBOR TROY SILICON VALLEY Tom Henderson: (313) 446-0337, • • [email protected]. Twitter: WWW.YOUNGBASILE.COM @tomhenderson2 20120305-NEWS--0016-NAT-CCI-CD_-- 3/2/2012 10:00 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 5, 2012 Focus: Innovations Yeast-based technology to fight cancer; revenue expected to rise sharply

BY TOM HENDERSON CRAIN’S DETROIT BUSINESS The same yeast Presented by Art Van Furniture ApoLife Inc. had a beery start. “ Now based in the Michi- used to make Eleanor Josaitis opened the door of opportunity for thousands off gan Life Science and Inno- vation Center tech incuba- beer and wine people throughout the region. Let’s show our enduring love and tor in Plymouth appreciation as we join hands to launch the Eleanor M. Josaitis Township, the biotech can be Fund for Focus: HOPE. firm traces its roots to a Stroh Brewery Co. sub- genetically 6:30 p.m. sidiary called StrohTech engineered to Saturday, March 10, 2012 that developed yeast- based technology compa- make cancer Detroit Marriott Renaissance Hotel nies. Tickets: $250 each After StrohTech moved to drugs. Durham, N.C., in 1994, ApoLife ” founder and CEO Nalini Motwani Nalini Motwani, ApoLife Inc. Purchase tickets at www.focushope.edu or licensed some of the technology by calling 313.494.4371 and began her own company. Originally the company was received a federal stimulus grant looking for a way to slow the rate of $200,000 to pursue development Eleanor M. Josaitis Fund for Focus: HOPE of apoptosis, or cell death, in the of another antibody to treat body by regulating levels of nitric clostridium difficile, an intestinal oxide, a naturally occurring bacteria that commonly occurs in chemical in the body that can hospitals. speed up the rate at which cells ApoLife hopes its technology, die. which is protected by two patents, But funding was hard to come one granted in 2002 and the other by, she said, and she morphed the in 2005, and has two others pend- company into one that would con- ing, will be a platform technology tinue to pursue yeast-based sci- to produce a wide range of drug ence. therapies. Today, ApoLife, which has four ApoLife does some contract re- employees, is on the verge of search, which helps pay the bills, sharply growing its revenue, is but the real profit will be in execut- generating large research grants ing license agreements with big and is signing up big pharmaceuti- pharma. cal companies to license technolo- To that end, it has hired Martina gy that promises to reduce the Molsbergen, a specialist in negoti- time and cost of bringing drugs to ating licensing agreements who market. Motwani says has negotiated deals “The same yeast used to make worth $3.6 billion over the last sev- beer and wine can be genetically en years, as vice president of li- engineered to make cancer drugs,” censing and business develop- said Motwani. ment. In September 2010, ApoLife got a Motwani said ApoLife now has phase one Small Business Innova- agreements with two companies tion Research grant of $300,000 she is prohibited from naming be- from the National Cancer Institute to cause of nondisclosure agree- make a yeast-based generic ver- ments. She said three other li- sion of a drug called Campath, censees are in negotiations and which is now made by Genzyme could be in place by June. Corp. using ovary cells from Chi- If, following trials, any of its nese hamsters and is about to drugs are approved for market, come off patent. ApoLife’s pharmaceutical part- The company has applied for a ners would be responsible for phase two grant of $2.5 million. manufacturing and marketing. “We’ll know by July,” said Mot- Motwani said licensing agree- wani. ments typically pay upfront fees To date, the company has re- and annual research fees of ceived $2.6 million in a variety of $50,000, with much larger fees as grants. drugs proceed into U.S. Food and ApoLife has shown that it can Drug Administration trials — $5 mil- cut the production time to produce lion for phase one safety trials, $10 stable cell lines from as much as million for phase two human trials 30 weeks using animal cells to four and $20 million for larger phase weeks using genetically engi- three trials. neered yeast cells. Between contract research and The advantage isn’t just in time, licensing deals, revenue could be it’s in the cost savings of being as high as $5.3 million this year, up able to build much smaller produc- substantially from $750,000 last tion facilities to turn out the same year, Motwani said. amount of product. She said she hopes to use those Campath is an antibody that licensing agreements to raise a $5 treats multiple sclerosis, a market million round of venture capital estimated, according to BioWorld next year to accelerate develop- Today, at $14 billion, and chronic ment. lymphocytic leukemia, a market Tom Henderson: (313) 446-0337, estimated at up to $2 billion. [email protected]. Twitter: In November 2010, the company @tomhenderson2 20120305-NEWS--0017-NAT-CCI-CD_-- 3/2/2012 10:06 AM Page 1

March 5, 2012 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: INTELLECTUAL PROPERTY FIRMS Ranked by number of intellectual property lawyers

Local Total Local Total intellectual number of intellectual number of property local property local Firm lawyers lawyers Firm lawyers lawyers Address Jan. 2012/ Jan. 2012/ Address Jan. 2012/ Jan. 2012/ Rank Rank Phone; website Top local executive(s) 2011 2011 Phone; website Top local executive(s) 2011 2011 Harness, Dickey & Pierce PLC executive committee 69 69 Brinks Hofer Gilson & Lione PC Steven Oberholtzer 13 13 74 74 524 S. Main St., Suite 200, Ann Arbor 48104-2921 managing partner Ann 17 15 1. 5445 Corporate Drive, Suite 200, Troy 48098 11. Arbor office (248) 641-1600; www.hdp.com (734) 302-6000; www.usebrinks.com Brooks Kushman PC James Kushman 62 62 Miller, Canfield, Paddock and Stone PLC Michael Hartmann 12 182 2. 1000 Town Center, 22nd floor, Southfield 48075 chairman and CEO 64 64 12. 150 W. Jefferson Ave., Suite 2500, Detroit 48226-4415 CEO 14 203 (248) 358-4400; www.brookskushman.com Mark Cantor (313) 963-6420; www.millercanfield.com president Dickinson Wright PLLC William Burgess 32 163 Quinn Law Group PLLC Christopher Quinn 12 12 3. 500 Woodward Ave., Suite 4000, Detroit 48226 CEO 26 174 12. 39555 Orchard Hill Place, Suite 520, Novi 48375 president 15 15 (313) 223-3500; www.dickinsonwright.com (248) 380-9300; www.quinnlawgroup.com

Howard & Howard Attorneys PLLC Mark Davis 28 67 Cantor Colburn LLP Karl Barr 12 12 4. 450 W. Fourth St., Royal Oak 48067 CEO and president 28 69 12. 201 W. Big Beaver Road, Suite 1101, Troy 48084 Scott McBain 11 10 (248) 645-1483; www.howardandhoward.com (248) 524-2300; www.cantorcolburn.com partners Rader, Fishman & Grauer PLLC management 26 26 5. 39533 Woodward Ave, Suite 140, Bloomfield Hills committee 26 26 Bodman PLC Ralph McDowell 9 131 48034 15. Sixth floor at Ford Field, 1901 St. Antoine St., Detroit chairman 9 133 (248) 594-0600; www.raderfishman.com 48226 (313) 259-7777; www.bodmanlaw.com Honigman Miller Schwartz and Cohn LLP David Foltyn 25 186 6. 2290 First National Building, 660 Woodward Ave., CEO and chairman 22 184 Dobrusin & Thennisch PC Eric Dobrusin 8 8 Detroit 48226-3506 16. 29 W. Lawrence, Suite 210, Pontiac 48342-2813 president and 7 7 (313) 465-7000; www.honigman.com (248) 292-2920; www.patentco.com shareholder Young, Basile, Hanlon & MacFarlane PC Andrew Basile Jr. 20 20 chairman of the board 17 20 Butzel Long PC Justin Klimko 6 108 3001 W. Big Beaver Road, Suite 624, Troy 48084 president and 8 117 7. (248) 649-3333; www.youngbasile.com Andrew Basile Sr. 17. 150 W. Jefferson Ave., Suite 100, Detroit 48226 managing partner/ (313) 225-7000; www.butzel.com managing shareholder president Gifford, Krass, Sprinkle, Douglas Sprinkle 18 18 Dykema Gossett PLLC Peter Kellett 6 135 president 18 19 17. 400 Renaissance Center, Detroit 48243 chairman and CEO 10 154 8. Anderson & Citkowski PC (313) 568-6800; www.dykema.com 2701 Troy Center Drive, Suite 330, Troy 48007-7021 (248) 647-6000; www.patlaw.com Jaffe, Raitt, Heuer & Weiss PC Richard Zussman 5 98 Reising Ethington PC William Francis 18 18 19. 27777 Franklin Road, Suite 2500, Southfield 48034-8214 managing partner 5 103 8. 755 W. Big Beaver Road, Suite 1850, Troy 48084 attorney and 18 18 (248) 351-3000; www.jaffelaw.com (248) 689-3500; www.reising.com shareholder

Theodore Olds III 15 15 Dierker & Associates PC Julia Dierker 5 5 Carlson, Gaskey & Olds PC president 4 4 10. 400 W. Maple Road, Suite 350, Birmingham 48009 CEO and president 16 16 19. 3331 W. Big Beaver Road, Suite 109, Troy 48084 (248) 988-8360; www.cgolaw.com (248) 649-9900; www.troypatent.com

This list is an approximate compilation of intellectual property firms in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the firms. Firms with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available.

LIST RESEARCHED BY BRIANNA REILLY ■ An expanded version of this list can be purchased at crainsdetroit.com/lists.

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Page 18 CRAIN’S DETROIT BUSINESS March 5, 2012

CRAIN'S LIST: LARGEST BIOTECH COMPANIES Ranked by 2011 revenue

Full-time Company Revenue Revenue local Address ($000,000) ($000,000) Percent employees Rank Phone; website Top local executive 2011 2010 change January 2012 Type of business InfuSystem Holdings Inc. Sean McDevitt $54.6 $47.2 15.7% NA Supplier of infusion services to oncologists and other 1. 31700 Research Park Drive, Madison Heights 48071-4627 chairman and CEO outpatient treatment settings (800) 962-9656; www.infusystem.com

Rockwell Medical Technologies Inc. Robert Chioini 49.0 59.6 -17.7 122 Fully integrated biopharmaceutical company targeting 2. 30142 Wixom Road, Wixom 48393 founder, chairman, CEO and end-stage renal disease and chronic kidney disease with (248) 960-9009; www.rockwellmed.com president innovative products for the treatment of iron deficiency and secondary hyperparathyroidism. Lumigen Inc. Sumon Rashid 42.9 47.0 -8.6 42 Developer and manufacturer of detection chemistries for 3. 22900 W. Eight Mile Road, Southfield 48033 director of operations high-sensitivity testing in clinical diagnostics and life (248) 351-5600; www.lumigen.com science research

Ash Stevens Inc. Stephen Munk 24.0 23.4 2.6 74 Makes active pharmaceutical ingredients; develops 4. 18655 Krause St., Riverview 48193 president and CEO processes, analytical methods, and manufactures such (734) 282-3370; www.ashstevens.com ingredients post-FDA approval

Asterand plc Jack Davis 23.3 B 21.3 9.3 NA Supplier of high-quality, well-characterized human tissue 5. Tech One Suite 501, 440 Burroughs, Detroit 48202-3420 chairman and interim CEO and human tissue-based research services to drug (313) 263-0960; www.asterand.com discovery scientists

BD Accuri Cytometers Vincent Forlenza 21.5 NA NA NA Scientific instruments 6. 173 Parkland Plaza, Ann Arbor 48103 president and CEO, Becton, (734) 994-8000; www.accuricytometers.com Dickinson and Co.

Neocutis Inc. Mark Lemko 19.0 15.0 26.7 NA Human cellular technology focused on skin care, anti- 7. 101 W. Big Beaver Road, Columbia Center II, Suite 845, president aging, women's health and wound healing Troy 48064 (313) 664-7546; www.neocutis.com Custom Biogenic Systems John Brothers 9.0 8.0 12.5 38 Design, develop and manufacture life science equipment 8. 150 Shafer Drive, Romeo 48065 president and CEO (586) 331-2600; www.custombiogenics.com

Clean Air Technology Inc. Jeffrey Waller 6.9 6.2 11.3 22 Design, manufacture and install clean rooms, dry rooms, 9. 41105 Capital, Canton Township 48187 president and controlled environments (800) 459-6320; www.cleanairtechnology.com

Innovative BioTherapies Inc. H. David Humes 3.6 4.3 -15.7 NA Utilizes stem cell and nonfabricated membrane 10. 401 W. Morgan Road, Ann Arbor 48108 president and chief science officer technologies to develop a bioartificial implantable kidney (734) 213-8350; innbio.com and other organs

This list of leading biotech companies is an approximate compilation of the largest companies involved in the research and development or manufacture of products designed to improve the health and well-being of humans. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. B Crain's estimate. ■ An expanded version of this list can be purchased at crainsdetroit.com/lists. LIST RESEARCHED BY BRIANNA REILLY Get in on the conversation

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March 5, 2012 CRAIN’S DETROIT BUSINESS Page 19

CALENDAR MEET AARON... AT KP - WE’RE A TEAM. WHEN Charter One CEO: Build on state’s bones WE PARTNER WITH YOU ON A PROJECT - YOU BECOME AN EQUAL As a veteran Michigan Chairman & CEO, in shaping Michigan’s economic future? business executive, San- Whirlpool Corp., to high- Small business is the driver of PART OF THE TEAM. WE WORK dra Pierce, president and level executives with the economy, not just in Michigan CEO of Charter One Bank Michigan ties from Ama- but across the country. Entrepre- TOGETHER TO ENSURE A QUALITY in Michigan, has seen the zon and Google. neurship generally starts off as an PRODUCT IS DELIVERED ON TIME state’s economy boom To register for the sum- incubator, becomes a small busi- and bust. mit or see the agenda: ness. Some of them take off and be- AND ON BUDGET. IT ALL STARTS Through it all, she has www.businessleaders- come midsize or large companies. IN OUR SALES & ESTIMATING maintained her optimism, formichigan.com/events. So small business is what we need she says. And now, armed Admission is $100 and in- in this country and in this state to DEPARTMENT. AS OUR CHIEF with a economic turn- cludes breakfast, lunch grow jobs, because it really ac- ESTIMATOR, AARON SNYDER around plan developed by and a light reception. counts for so many of our jobs. And Business Leaders of Michi- Pierce talked with entrepreneurship is all part of that. IS THE BEGINNING OF YOUR gan, of which she is a Crain’s about entrepre- How can we foster entrepreneurism PARTNERSHIP WITH KERKSTRA member, Pierce is among Sandra Pierce, neurship and the state’s in Michigan? the local leaders touting Charter One Bank economy. Innovation is creativity and ap- PRECAST. HE WORKS DILIGENTLY assets on which Michigan in Michigan What have you seen in plying it to a positive outcome. If can rebuild its economy, your own business that you believe Harvard research, and TO COORDINATE PRICING, 3D Those six pillars — engineering makes you optimistic about the future I do, 80 percent of innovation can MODELS AND SUBCONTRACTORS talent, geographic location, higher of the state? be taught or learned. Only 20 per- education, natural resources, the I’m in the financial services in- cent, according to Harvard, is in- TO ENSURE YOUR PROJECT STARTS automotive industry and health dustry. In order for this industry nate. There’s this myth that you OUT RIGHT. JOIN AARON AND THE and medical expertise — will be and my organization to prosper, have to be born as an innovator. discussed at BLM’s Michigan CEO the community and the businesses That’s just not true. We had it 100 REST OF OUR TEAM ON YOUR NEXT Summit, slated for March 15 at the that reside in this community years ago. We put the world on PROJECT! Westin Book Cadillac Hotel in need to prosper. I’m optimistic, be- wheels 100 years ago. This state downtown Detroit. cause when I look at the new can get that again because we have Pierce will serve as one of more Michigan, and I look at us coming the bones to do that. We have the than a dozen panelists and speak- out of what has been probably the foundational assets to do it. We ers who will share strategies for worst economic times in my life- just have to take the fear away — building the state’s economic fu- time, maybe in our history in this that’s the biggest obstacle — and ture. Notable speakers range from state, we’re seeing light, we’re see- give people the confidence that we William Clay Ford, executive chair- ing companies reinvest again. can do this again. man of Ford Motor Co., to Jeff Fettig, What role will entrepreneurism play — Mike Turner 800.434.5830 - WWW.KERKSTRA.COM TUESDAY rummichigan.org. ETHOS WEEK MARCH 12-16 AT MARCH 6 Sustainability in Financial Literacy: Detroit Economic Club. 11:30 a.m.-1:30 EASTERN MICHIGAN UNIVERSITY Consumer Protection, Regulatory Re- form and You. 7:30-10 a.m. March 15. p.m. With Fred Hochberg, chairman Crain’s Detroit Business, WJR AM and president, Export-Import Bank of Crain’s Detroit Business, University of 760 and others are sponsoring the Michigan-Dearborn. With Dennis the U.S. Dearborn Inn. $45 DEC mem- sixth annual Ethos Week at the bers, $55 guests, $75 nonmembers. Koons, president and CEO, Michigan Contact: (313) 963-8547; email: Eastern Michigan University College Bankers Association; others. Univer- info@econclub,org; website: of Business, 300 W. Michigan Ave., sity of Michigan-Dearborn. $35 for www.econclub.org. Ypsilanti, March 12-16. current CDB subscribers, $30 groups Events will include a live broadcast of 10 or more/UM-Dearborn students from the College of Business of the and faculty, $60 nonsubscribers, $59.50 Paul W. Smith includes one-year subscription to THURSDAY Crain’s. Contact: Kacey Anderson, MARCH 8 show Monday, 5:30-9 a.m.; (313) 446-0300; email: [email protected]; website: The Voices of Fox Sports Detroit. 11:30 discussions on www.crainsdetroit.com/events. For a.m.-1:30 p.m. Adcraft Club of Detroit ethics in sponsorships, contact Marla Wise at and Fox Sports Detroit. With Mario technology with (313) 446-6052 or [email protected]. Impemba, Rod Allen, George Blaha, Jack LaRue, Greg Kelser, Ken Daniels and Mickey senior vice Redmond. Tiger Club at Comerica president, Launch Meeting for SI Detroit. 5-8 p.m. Park, Detroit. $35 members, $45 non- Thomson March 19. Networking event for area members, $25 junior members and Reuters Tax & software and Internet entrepreneurs. students. Contact: Clarence Young, Accounting, Panel discussion on building an infor- (313) 872-7850; email: cyoung@ad- Smith mation-technology sector in metro De- craft.org; website: www.accraft.org. Tuesday, 5:30- 6:30 p.m.; discussions on ethics in troit from the perspective of venture advisory services with Andrew capitalists. With Mike Flanagan, capi- MONDAY Malec, managing director, Gordon tal markets team leader, Michigan Advisors PC, Wednesday, 11:30 Economic Development Corp.; Ted MARCH 12 a.m.-12:30 p.m.; and discussions Serbinski, vice president, Detroit Ven- ture Partners; Emily Doerr, manager of . 11:30 a.m.-1:30 on ethics in finance by Jonathan Detroit Economic Club small-business programs, Detroit Re- p.m. With Mary Sue Coleman, presi- Citrin, CEO, CitrinGroup, Thursday, gional Chamber; others. Majestic dent, University of Michigan; and An- 11:30 a.m.-12:30 p.m. The ethos drew Liveris, chairman and CEO, Dow luncheon, Friday, 12:30-2:30 p.m., Café, Detroit. Free; registration re- Chemical Co. Westin Book Cadillac, will feature a keynote speech by quired at www.sidetroit.com. Detroit. $45 DEC members, $55 guests; Anton Valukas, chairman of $75 nonmembers. Contact: (313) 963- Chicago-based Jenner and Block, on Detroit Economic Club. 11:30 a.m.-1:30 8547; email: [email protected]; web- ethos and the Lehman Bros. p.m. March 20. With Angela Ahrendts, site: www.econclub.org. bankruptcy. CEO, Burberry. Townsend Hotel, For a complete schedule of events Birmingham. $45 DEC members, $55 Building a Brand on a Budget. 11:30 and prices: www.cob.emich.edu. guests of members, $75 nonmembers. a.m.-1:30 p.m. Detroit Regional Cham- Contact: (313) 963-8547; email: ber. With Eric Brown, founder, Urbane America; others. Glen Oaks Country [email protected]; website: Apartments. Emagine Royal Oak. $25 Club, Farmington Hills. $25 members, www.econclub.org. chamber members, $40 nonmembers. $45 nonmembers by March 12. Con- Contact: Marianne Alabastro, (313) tact: (877) 894-2754; email: agcdetroit@ Mobile Moves Michigan: How Wire- comcast.net; website: www.acg.org/ 596-0479; email: malabast@de- less Impacts Michigan’s Economy. detroit. troitchamber.com; website: www.de- Public portion, 7-9:30 a.m. Keynote troitchamber.com. address, 8:30 a.m. March 28. Mobile A Conversation With Mary Barra. 11:30 Technology Association of Michigan. a.m.-1:30 p.m. March 14. Inforum. Keynote speaker Steve Wozniak, co- COMING EVENTS With Mary Barra, senior vice presi- founder of Apple Inc. Q&A session. Commercial and ABL Lending to Mid- dent of global product development, Macomb Community College Sports & dle Market Companies. 7-9 a.m. March General Motors Co. Detroit Marriott Expo Center, Warren. $99 for MTAM 13. Association for Corporate Growth Renaissance Center. $50 members, $65 members; $149 nonmembers in ad- Detroit. With Marshall Kleven, senior nonmembers. Contact: James Melton, vance; $179 at the door. Registration vice president, business banking and (313) 578-3244; email: jmelton@info- and information at www.mobile- global commercial banking, Bank of rummichigan.org; website: www.info- movesmichigan.com. 20120305-NEWS--0020-NAT-CCI-CD_-- 3/2/2012 10:11 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS March 5, 2012

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE Today, more than ever, global competition, new technologies, and corporate EDUCATION streamlining require innovative thinking Phyllis Curtis- IN THE SPOTLIGHT Tweed to dean of Ann Arbor-based Domino’s Pizza and leaderships abilities. Continuing academic and stu- has named Kevin Vasconi dent services, Or- your education can be key to your chard Ridge cam- executive vice president and success. From biomedical and robotics pus, Oakland Community Col- chief engineering to health information lege, Farmington information Hills, from faculty officer. technology management, Lawrence member and ad- Vasconi, 51, Technological University offers ministrator, City had been chief Curtis-Tweed University of New information innovative degrees and fast track York’s Medgar officer and vice Evers College, certificate programs to prepare you president of Brooklyn, N.Y. engineering at for the jobs of the future. Tara Miceli to di- Stanley Black rector, The Walsh Vasconi & Decker- Institute, Troy, Stanley Security Solutions in from campus 2012 2012 2012 Indianapolis. president and re- AMERICA’S BEST BEST COLLEGES MILITARY He replaces Christopher FRIENDLY gional director of UNIVERSITIES in the Midwest McGlothlin, who has left the U.S. News & Princeton SCHOOL admissions, World Report® Review® G.I. Jobs® Corinthian Col- company. leges Inc., South- Vasconi earned a Bachelor of Waive your application fee at Miceli field. Science degree in technology from www.ltu.edu/applyfree Purdue University. FINANCE from vice president, engineering tech- Kortney Dailey nology services, Comerica Bank, De- Wallace to manag- troit. ing director, Possible is everything. KPMG LLP, De- HEALTH CARE troit, from direc- Mildred Matlock to COO, DMC Detroit Explore over 100 undergraduate, master’s, and doctoral programs in Colleges of tor. Architecture and Design, Arts and Sciences, Engineering, and Management. Tamika Hall to di- Receiving Hospital, Detroit, from vice rector of opera- president of professional services. tions, Sigma In- vestment INFORMATION TECHNOLOGY Counselors Inc., Tom Keuten to vice president, Detroit Wallace Southfield, from office, Sogeti USA, Farmington Hills, operations manager. Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 from director of professional services, 800.225.5588 | [email protected] | www.LTU.edu Carl Sorboro to principal, Rehmann Method Park, Novi. LLC, Troy, remaining director of oper- Ronald Redmer to ations. Also, Joan Payne to principal, remaining CFO. chief information officer, NDeX, Joe Vitale to global automotive sector Farmington Hills, leader for Deloitte Touche Tohmatsu Ltd., Deloitte Consulting LLP, Detroit, from IT software remaining principal and central re- manager. gion automotive sector leader. Also, Chuck Ciuni to the automotive sector NONPROFITS practice, remaining partner, Deloitte Nancy Skula to de- Tax LLP, Detroit. velopment man- Paul Orlando to chief information offi- ager, St. Vincent cer, Shore Financial Services Inc., Redmer and Sarah Fisher Birmingham, from senior vice presi- Center, Detroit, from grant writer and dent, Flagstar Bank, Troy. Also, Bill nonprofit consultant, The Write Van Nort to chief technology officer Source, Detroit.

What are the key trends in the market indicating? Is now the time for your business to begin reinvesting Mark Davidoff, Are we on the or are the risks Michigan Managing still too high? Partner, Deloitte LLP road to recovery WE’LL DISCUSS: or the precipice of a • Key economic indicators double-dip recession? • Potential impacts of the 2012 election season • Economic forecast over the next 5 years March 13|Noon – 1 p.m. EST Carl Steidtmann, • Specifi c actions Chief economist, To learn more, please visit businesses can take Deloitte Services LP www.crainsdetroit.com/crainsevents in the face of FREE to Crain’s readers uncertainty 20120305-NEWS--0021-NAT-CCI-CD_-- 3/2/2012 6:24 PM Page 1

March 5, 2012 CRAIN’S DETROIT BUSINESS Page 21 TV: Departures of veterans a win-lose for local television ■ From Page 3

He’d been a meteorologist at the af- ly,” said Mort Meisner, owner of to do something else,” he said. you.” That’s the position Fernandez filiate since 1977, apart from a Huntington Woods-based Mort Hodak echoed those thoughts. Local station management is finds himself in lately. brief stint at Detroit’s WJBK-TV Meisner Associates, a placement “The demand is for doing more stuck having to make cuts it does- “There is a tremendous amount Channel 2 in the 1990s, and was re- service for TV news industry. with less. They’re shooting more n’t want to make, Friedman said. of equity and value that, when peo- placed at Channel 7 by Dave “Someone like Don Shane, they of their own video and editing it. “Anybody running a TV station ple who have been here a long time Rexroth. could hire someone for probably In the past, they would have pho- would love to be able to keep their walk out the door, goes with “In my career, I haven’t seen half his salary, and they’ll be very, tographers and editors helping long-tenured talent on the air be- them,” he said. anything quite like this,” Hodak very good.” them, and producers,” he said. cause they’re so ingrained in the Bill Shea: (313) 446-1626, said. “The stations want to go with “They’re becoming one-man community and so associated with [email protected]. Twitter: younger, less-expensive people. bands. It puts more pressure on the station’s brand,” he said. @bill_shea19 There’s just no mystery to it.” A numbers game A message was left for Tim- WXYZ — it operates out of a mons, who retired in October to Southfield building known as run the Michigan chapter of a Broadcast House — is owned by M thoroughbred race horse rescue Cincinnati-based E.W. Scripps Co., ARKET organization. She had been with REAL ESTATE which has 19 television affiliates the station since 1982 after starting and 13 newspapers. PLACE her career in 1972 with Lansing- Scripps saw fourth-quarter net CONDOS VACANT LAND Jackson’s WILX-TV Channel 10. income fall to 75 percent to $6.3 TELECOMMUNICATIONS She co-anchored WXYZ’s noon FOR LEASE FOR SALE million on revenue of $197 million, Two bedroom condo overlooking Detroit river WE BUY USED TELEPHONE EQUIPMENT and 5 p.m. newscasts a decline it blamed Wyandotte; fully furnished, includes all utilities Clinton Township. $1400/month. 1 yr lease required. 248-249-5592 with JoAnne Purtan. on lack of political PICK UP ON SITE - PROMPT PAYMENT 2.48 Acres FOR SALE or build to suite. 248-225-3957/[email protected] INDUSTRIAL PROPERTY Diana Lewis now co- People are advertising between Vacant land,200ln ft frontage on Groesbeck Hwy. anchors the 5 p.m. October and Decem- “ Call Us For Personalized AVAILABLE NOW N/16 Mile Rd. 35,000 + Views Daily news, and Vic Faust still getting ber compared to 2010. Contact: [email protected] co-anchors at noon. WXYZ’s financials Service: (313) 446-6068 Taylor/Romulus Area — 4,000 to 80,000 sq. ft. Shane, 59, who re- paid obscenely, were not made avail- CLOSING TIMES: Monday 3 p.m., Ideal for logistics company, Call or email today for information tires in March but able. one week prior to publication date. manufacturing or warehousing. on a custom advertising plan! just not Please call us for holiday closing times. did his last sports- Scripps’ television Yvon Rea 734-946-8730 [email protected] cast on Wednesday segment revenue FAX: (313) 446-1757 313.446.6068 E-MAIL: [email protected] night, joined the sta- obnoxiously. ” dropped 16 percent to INTERNET: tion in 1989. He start- $84.7 million, but the www.crainsdetroit.com/section/classifieds VACANT LAND Mort Meisner, ed his TV career in company’s 2012 ex- Confidential Reply Boxes Available Mort Meisner Associates INDUSTRIAL LAND FOR SALE 1974. Tom Leyden is pectation is that TV PAYMENT: All classified ads must be the interim sports di- revenue will increase prepaid. Checks, money order or Crain’s credit approval accepted. 20.37 ACRES, LOTZ RD., CANTON rector for the station until a per- $100 million — thanks to the acqui- Credit cards accepted. OFFERED VIA SEALED BID AUCTION manent replacement is found, Fer- sition of nine television stations See **BIDS DUE MARCH 23, 2012** nandez said. from The McGraw-Hill Cos. — to $450 Crainsdetroit.com/Section/Classifieds million for the year. for more classified advertisements VISIT AUTONATIONSITES.COM FOR INFORMATION ‘A transient place’ Local television station revenue as a whole across the U.S. is ex- Entertainment industry lawyer pected to grow to $20 billion this Henry Baskin, who is president of year compared to $18 million in The Baskin Law Firm in Birming- JOB FRONT 2011, according to a forecast by ham, said the financial realities Chantilly, Va.-based broadcast in- have been harsh on veteran TV dustry analysts BIA/Kelsey. It had MANAGEMENT TECHNICAL news talent. dropped to $15.8 billion in 2009. Vice President for ITC Holdings Corp., in Novi, MI. “You either take a severe reduc- Political advertising is expected Senior Vice President of Operations Duties: Assume business unit resp. for ITCTransmission & METC operating subsidiaries, tion, or you don’t get renewed,” to fuel the increase. inc. strategic direction, plan, report, operate, & financial performance. Travel req 10% - 20%. said Baskin, who represents nu- Increases in profit also are com- A growing nationwide rehabilitation company based in the Req: Bach in Bus, Math or Eng; 10 yrs exp in regulatory affairs pos in regulated electric utility merous TV news clients, including Detroit area seeks an experienced individual to join our dynamic transmission co; 3 yrs super. exp inc., lead utility coalitions or workgroups; exp with: work & ing, at least in part, from smaller Executive Leadership Team. This position will be an integral develop relationships w/ customers, regulators, communities, gov’t officials, legislators, & Hodak for more than 30 years and salaries. member of the team that provides the operational, strategic stakeholders in electric transmission industry, inc advocacy, lobbying, media relations, & and analytical focus to support our growth. Responsibilities delivering industry presentations; transmission rate design, revenue distribution, cost Shane at times in the past. Television revenue — which is include leadership and hands-on oversight of day-to-day operations to ensure that all aspects perform as intended. allocation, & tariff terms & conditions of service; acquiring of transmission sys & discrete Detroit is no longer a destina- linked to viewership ratings — transmission assets, inc securing necessary fed & state reg approvals; state & fed reg tion of on-air talent, Baskin said, Qualifications include a degree in Healthcare/Business processes, inc exp w/ regulatory proceedings, review of regulatory filings & financial has been strained by competition Administration or related field, and a thorough experience disclosures, provide expert testimony, process discovery questions, mgmt of regulatory and stations here are cutting for viewers from cable and the In- with healthcare management. Previous sales and exposure cases, direct work of outside resources, & formulate regulatory strategies; negotiate complex salaries like every other market with RFPs is preferred. Other qualifications include utility issues, inc contracts, operations, tariff provisions, pricing, asset sales agmt., cust. ternet, said Matt Friedman, a me- strong written and verbal communication, leadership, agmt, & lawsuit stlmnts. Exp can be acq’d concurrently. except for the very largest. And the interpersonal, motivation, presentation, organization, sales, dia observer, local TV veteran time management, and team and computer skills. Further View full duties & apply: www.itctransco.com. EOE. new talent is likely to be young and co-founder of Farmington qualifications include strong knowledge of both the healthcare industry and its key issues. Must be comfortable within an POSITIONS AVAILABLE and inexpensive, he added. Hills-based public relations firm innovative entrepreneurial work environment. “It is the worst time in the mar- Tanner Friedman. We offer an attractive compensation and comprehensive ket that I’ve ever seen, and that benefit package. Forward your cover letter, resume and salary “Corporations still put pressure expectations to: [email protected] goes back to 1968,” he said. “This on local stations to send profits to used to be a destination for broad- headquarters,” he said. REFERRERS: EARN A casters. We were in the top five or That pressure to make money in six, revenue-wise. It no longer is. an atmosphere of lower ratings It’s a transient place. Every other and less advertising means station The Crain’s reader: market is doing the same thing, ex- managers have to make cuts — 26.5% influence the cept New York, Chicago and Los and the big paychecks for veteran purchase of office/industrial Angeles.” on-air talent are obvious targets. and commercial space. Detroit is the 11th largest televi- “What we’re seeing in Detroit Help them find you by CASH BONUS sion market. mirrors what we’re seeing around advertising in Crain’s Real In a 2009 salary survey by the the country in local television: Estate section. up to $4,000 when a hire is made Washington, D.C.-based Radio Tele- When the contracts are up, they’re 313.446.6068 • FAX: 313.446.1757 vision Digital News Association, an either not renewed or anchors are E-Mail: [email protected] electronic news media trade retiring,” he said. “What we’re see- group, the maximum salary for a ing much more of is a generation sports anchor and weathercaster of the highest-paid talent at TV sta- was $350,000, and a news anchor tions retiring in their 60s when topped out at $600,000. their contracts are up.” Hodak was believed to have And because stations have to been paid $500,000 annually, with scrap and claw for audience and Timmons and Shane each at revenue, the business sometimes $300,000. isn’t as enjoyable for longtime |JOB FRONT “Salaries are coming down dra- staffers, Friedman said. matically. People are still getting “They’re not having as much fun crainsdetroit.com/jobfront paid obscenely, just not obnoxious- as they used to have. They can go on 20120305-NEWS--0022-NAT-CCI-CD_-- 3/2/2012 6:13 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS March 5, 2012 Barden: Estate closer to closure ■ From Page 3 Barden Cos. ranked No. 49 on cessitate settling the estate Crain’s Private 200 list for 2011, through the court, said Mayoras, with $385 million in 2010 revenue. The whole estate who co-authored Trial and Heirs: Its casino holdings were its largest “ Famous Fortune Fights! assets. still has a gag order Barden’s siblings reportedly The transfer and sale of Majestic have been involved in the probate Star and Fitz Casino and Hotel on it per the Barden court proceedings involving his es- leaves Barden Cos. with the minor- tate and trust. According to the De- ity share Barden retained in the family request. troit News report, his heirs said dur- Rivers Casino in Pittsburgh. Barden ” ing an October hearing that an Ohio Patrice Green, Green Group sold 75 percent of the casino in auto broker’s $100,000 offer for Bar- 2008, during its development, to den’s 2006 Bentley was too low. Holdings Acquisition Co. LP, a joint ary, following accusations that The fact that the Barden estate venture of Chicago billionaire Neil they had drained nearly $243,000 and trust court cases are now Bluhm’s Walton Street Capital LLC from the estate with unnecessary closed could mean the fighting is and High Pitt Gaming LP. fees. done, or that the family is fighting Barden Cos. also reported to A Detroit News report from late in another forum, such as through Crain’s residential and commer- October states that Barden’s will, binding or non-binding arbitra- cial real estate development and which is on file with probate court tion or mediation, Mayoras said. entertainment holdings. It’s un- but not available to the public, was But there is at least one other clear what those specific assets are executed in September 2010. Ac- probate case involving the Barden and what has become of them. cording to the report, an attorney family currently open. The assets and proceeds from for Alana Marshall Barden, Bar- In December, Alana Marshall the sale of assets appear to now be den’s college-aged daughter, said Barden petitioned the court part of the Don H. Barden Trust, she believed her father was men- through her attorney to replace which was named as the sole hold- tally incompetent and that his will Sherman as trustee on the irrevo- ing company and sole manager of should be declared invalid. cable trust her father set up for her Barden Nevada Gaming LLC in docu- A trust doesn’t typically have to in 1994. ments filed in late October with go through probate court, Mayoras She nominated Shirley Kaigler, the Nevada Gaming Commission. said last week. a partner at Jaffe Raitt Heuer & Michelle Sherman, vice presi- “That’s a big advantage of hav- Weiss PC, the firm where her attor- dent and CFO of the Barden Cos., ing a trust: You keep it private, ney, Elizabeth Luckenbach, also declined to comment on Barden outside of court,” he said. works. The court approved Bar- Cos.’ divestitures and remaining But problems such as beneficia- den’s petition in mid-December. assets. ries fighting over whether the Don Barden’s siblings are listed Calls placed to John Chase Jr., trust is a valid document or as interested parties on Marshall trustee of Barden’s estate, and to whether it is being administered Barden’s trust case. Marshall’s attorneys were not re- properly, or the presence of am- Sherri Welch: (313) 446-1694, turned. biguous or contradictory language [email protected]. Twitter: And GVSU declined to comment in the trust document, would ne- @sherriwelch beyond confirming that it closed on the property Feb. 15 and stating its reported plans for the site. “The whole estate still has a gag order on it per the Barden family request,” said Patrice Green, pres- ident and owner of the Green Group The Engineering Society of Detroit and publicist for Marshall. Marshall, former Wayne County Engineering & Technology COO, and her husband were in the midst of a divorce when he died. and The divorce was dismissed by Wayne County Circuit Court last May Job Fair after Barden’s death. Marshall continues to live at the SURVEY Barden home near the Detroit Golf Club in Detroit, Green said. EXHIBITORS WANTED A prenuptial agreement signed in 1998 between the two stated that Looking at Current March 12, 2012 Marshall would get half of Bar- den’s estate in the event of his 2 p.m. – 7 p.m. death. But if the two were in the Suburban Collection Showplace, Novi process of a divorce and Barden Business Issues died before a divorce judgment was reached, Marshall would get If you have job openings and looking to recruit the best $1 million. talent in Michigan, then The Engineering Society of The prenup sets the base amount that Marshall could get, Detroit (ESD), Engineering & Technology Job Fair. Andy Mayoras, a probate attorney with Barron Rosenberg Mayoras & Recognized as the premier recruitment fair for engineers, Mayoras PC in Troy, told Crain’s scientists & tech professionals, the event: last May. But she could get more t Draws the best pool of qualified candidates from his estate, depending on what Receives wide media exposure is in his will, Mayoras said. t Wayne County Probate Court t Produces proven results cases involving Barden’s estate and a trust he created before his Visit www.esd.org today or call Leslie Smith, CMP, at death have closed, but they remain 248-353-0735, ext. 152 or [email protected] sealed from the public. and reserve your space. Chase, the trustee of Barden’s Full survey results can be found at estate, did not return calls seeking comment. honigman.com He previously served as co- trustee of the estate of the late civil This is the 19th in a jointly-sponsored series on critical issues. rights icon Rosa Parks. He and fel- low Detroit probate and estate planning attorney Melvin Jeffer- son Jr. were removed as trustees of the Parks estate in early Febru- 20120305-NEWS--0023-NAT-CCI-CD_-- 3/2/2012 6:11 PM Page 1

March 5, 2012 CRAIN’S DETROIT BUSINESS Page 23 NEI: Tech grants to focus on Midtown ■ From Page 1 ture between Wayne County and The decision for how to fund the Ann Arbor Spark. NEI-FUNDED PROJECTS work beyond the next three years In addition, NEI will make a will evolve over the next 12-18 The New Economy Initiative has grant, yet to be determined, that launched the Regional Innovation months, he said. “It’s a decision will create what is called the High Network to boost high-tech that will be made by the funders. Tech Accelerator inside TechTown, development and job creation in There were 10 already committed; a move designed to get TechTown Southeast Michigan. The network my sense is the next round of fund- back to its original mission of in- will make at least $30 million in ing could have more and/or differ- cubating emerging tech compa- grants, including the following: ent funders.” nies. TechTown, Detroit $2 million Determining the level of grant Just 15 percent of TechTown’s Henry Ford Health support needed and how to im- 250 tenants are high tech compa- System Innovation prove economic development is a nies. The need to fill the building Institute, Detroit $1.5 million task the NEI hired Mark Cotic- and increase revenue drove the Midtown Detroit chia to help with. He had a hand shift in focus, as well as a previous Inc. – Real Estate in the growth of Pittsburgh’s NEI grant in conjunction with the Strategy, Detroit $1.4 million highly successful life sciences Missouri-based Kauffman Founda- NextEnergy, Detroit $1 million corridor in the 1990s. Then, in 10 tion to boost retail and lifestyle Wayne State years as head of tech transfer at business in Detroit. University – Tech Case Western Reserve University in Transfer Office, Egner said rededicating tech in- Cleveland, the university spun off Detroit $870,000 cubator space at TechTown will 29 companies that attracted more Michigan Life Science encourage collaboration between than $200 million in venture capi- the Innovation Institute at Henry and Innovation Center, Ann Arbor $850,000 tal. Ford and medical spinoffs from the Bizdom U, Detroit $750,000 He has spent the last year as- Detroit Medical Center. sessing the area’s anchor institu- College for Creative The NEI will support companies tions such as TechTown, NextEn- inside the High Tech Accelerator Studies/Detroit Creative Corridor ergy and DMC. The Henry Ford with a new $5 million fund called Center, Detroit $675,000 Health System and WSU, he said, the Captive Equity Fund, making eq- Detroit Economic can be compared to Cleveland uity investments up to $250,000 in Growth Corp., Detroit $488,257 Clinic and Case Western. startups. AutoHarvest, “In the Midtown area, you have TechTown, itself, has already Ann Arbor $475,000 untapped potential with respect to been awarded $2 million to sup- Sustainable Water high-tech economic development,” port ongoing operations and sup- Works, Detroit $440,000 he said. “I saw the assets here and port services for entrepreneurs. Southwest Solutions – said, ‘If you put the right programs The $1.4 million approved for Neighborhood in place and you get people work- Midtown Detroit will launch a real Collaborative, Detroit $335,000 ing in collaboration, you can’t just estate subsidiary to focus on devel- Inforum, Detroit $250,000 equal what’s happened in Pitts- opment in the immediate neigh- Detroit Microenterprise burgh and in Cleveland, you can borhood around TechTown. As Fund, Detroit $150,000 surpass it. one of the state’s designated The Henry Ford, “There are more opportunities SmartZones, taxes can be captured Dearborn $100,000 for tech transfer from hospitals for development in the zone. than there are from universities,” But many of the current tenants said Coticchia. “Docs come up in the zone are nonprofits, and from the 21st Century Jobs Fund in with ideas to solve the problems of many of the vacant parcels are conjunction with NEI grants. today. It’s much more fertile owned by Wayne State University. No MEDC grants have been ground.” Egner said WSU is amenable to made yet, but the grants could Egner said the DMC will also be getting some of its parcels into the eventually total something ap- a grant recipient, but the size and private sector for tax-generating, proaching $20 million, said Martin purpose have yet to be deter- for-profit business. Dober, the MEDC’s senior vice mined. Leslie Smith, TechTown’s presi- president for entrepreneurship JumpStart Inc., a nonprofit based dent and CEO, said creating 2,000 and innovation. in Cleveland that focuses on eco- square feet of space for a tech incu- The MEDC has made grants or nomic development, also served as bator won’t be a problem, even investments totaling $12 million in a consultant to the NEI to assess though the building is at full ca- the past year to organizations now the region’s strengths. pacity with a lengthy waiting list. being targeted by the NEI. Ron Gardhouse, NextEnergy’s ONE HU She said she has about half of a “We’ve been working with G ND IN R CEO and president, said the $1 mil- T E A D U.S. Housing and Urban Development them on their strategy to ensure R Y B E

lion approved for his nonprofit E A L grant of $4.1 million for building that the grants are productive,” R

E S improvements left and can knock he said. will help pay for the $2 million C 100 out walls and reconfigure space on The MEDC has helped NEI in- needed to start a project that could the first floor to carve out the re- clude milestones in the grants, validate a component of the smart quired space. which must be hit to allow funding grid known as vehicle-to-grid elec- The NEI was formed in 2008 as a for years two and three. trification, where energy stored in $100 million initiative by 10 re- Egner said that many of the batteries of parked cars can be fed gional and national foundations grants, so far, cover the first year for a fee back into the grid when to boost economic activity in of what is planned to be a three- needed. Southeast Michigan. They were year cycle. Egner said he hopes to eventual- the Detroit-based Community Foun- NEI will also launch a third ly get formal participation in the dation for Southeast Michigan, fund, size to be determined, to Regional Innovation Network Southfield-based Max M. and Mar- loan money to help healthy com- from the University of Michigan and jorie S. Fisher Foundation, New panies grow, with traditional Michigan State University. York-based Ford Foundation, De- bank lending still hard to come “I’ve met with Mary Sue Cole- troit-based Hudson-Webber Founda- by. man and Lou Anna Simon and tion, Battle Creek-based W.K. Kel- Egner said three years of grants, both were very supportive and logg Foundation, Miami-based John which could end up totaling open to further discussion about S. and James L. Knight Foundation, $35 million, plus overhead expens- both universities could fit in,” he Troy-based Kresge Foundation, De- es and paying consultants, will de- said, referring to the respective troit-based McGregor Fund, Flint- plete the remaining $40 million of presidents at UM and MSU. based Charles Stewart Mott Founda- NEI’s $100 million. “Both said they would love to be tion and Detroit-based Skillman It will need more equity and closely tied in. I couldn’t be more Foundation. more capital in the form of venture pleased by how receptive they Egner is also president and CEO funds, microloans, mezzanine debt were. Both want to help bring tal- of the Hudson-Webber Founda- financing, real estate assistance ent from their respective universi- 00 tion. and subsidy funds. ties into the city, and I think we’ll SAVE $100 OFF Executives at the Michigan Eco- “The Innovation Network will see something formalize over the nomic Development Corp. spent two need funding beyond the next next 18 months.” months planning the Regional In- three years. We just don’t know Tom Henderson: (313) 446-0337, novation Network with Egner. yet if the New Economy Initiative [email protected]. Twitter: The MEDC will coordinate will be the vehicle to provide that @tomhenderson2. Sherri Welch grants or investments of its own funding,” Egner said. contributed to this report. 20120305-NEWS--0024-NAT-CCI-CD_-- 3/2/2012 6:48 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS March 5, 2012 Raleigh: When film credits dried up, so did studio’s payments ■ From Page 1 Rahm Emanuel. other than this blank check for up Department of Treasury, which acts development officer of the Michi- ing family court disputes in a fo- Those names helped the studio to 42 percent of the cost of any pro- as fiduciary for the state pensions. gan Magnet Fund, said the reason rum for participants and viewers. raise $18 million in a sale of private ject,” she said. So far, the studio covered the for the requirement is straightfor- If the show is picked up by a tele- activity bonds for the project “This new approach adopted first two interest payments on the ward: Without it, the tax credits vision network, Spilman said, he through the Oakland County Econom- (last February) is kind of leveling guaranteed bond notes last year. would be lost if the investment — hopes to shoot subsequent episodes ic Development Corp. But the bond- the playing field for businesses to But it failed to cover part of the in this case Raleigh — were liqui- on a set at Raleigh in Pontiac. holders, the state pension plan and excel and help Michigan thrive, re- third scheduled interest payment dated or repaid creditors too early. “There’s no business model like institutional investors are all gardless of their particular indus- Feb. 1, so the retirement system The New Markets Tax Credit pro- before for filming in Michigan,” he bound not to take any action if the try. He is sticking to that objective made $420,000 of the scheduled gram also has a goal of creating “pa- said. studio is in default on outside in- and is looking to give that a chance $630,000 payment. tient capital” and giving enterpris- “Midsize to large budget films vestments totaling $48 million un- to work.” No payments have been made to- es in stressed areas time to succeed. are generally not coming here any- til July 2017 at the soonest. ward the $1.4 million interest owed “The tax credit is not contingent more because the environment is Nelson said last week he was in to date on the $10 million in bonds on the business being (immediate- too competitive. Instead we have a meetings to court the production Falling short held by the studio owners. ly) successful,” Bogdan said. “It’s crop of our own home-grown film- company of a new movie to film on “Oz” had a Michigan budget of Those bonds are unsecured and contingent on the money staying makers doing stuff on ultra-low location in Michigan, which he de- more than $104.8 million, accord- can’t be paid until the guaranteed invested.” budgets. And that’s good, but it clined to name. ing to records prepared by the notes have been paid, said Robert The seven-year forbearance takes the larger, unionized films Nelson is also hosting a tour to Michigan Film Office, an agency of Schwartz, member at Detroit- clause for the bonds is a “highly that pay people $25-$30 per hour showcase the studio to members of the Michigan Economic Development based Clark Hill plc and bond coun- unusual” provision for bondhold- within the industry to make the the Urban Land Institute Michigan Corp. sel for the Oakland County EDC. ers and bond insurers to live by, business model sustainable.” chapter in Detroit on March 20. How much of that went to The co-owners of the studio pro- said Gina Torielli, professor and Eight film and digital media pro- Raleigh Michigan has housed Raleigh is unclear. The studio re- jected revenue of $230.4 million director of the graduate tax pro- duction companies have applica- just one film project in Pontiac ceived rental revenue of about $3.2 over its first 10 years, according to gram at Thomas M. Cooley Law tions pending before the state for that qualified for state film incen- million, according to an annual re- the Michigan Department of Trea- School in Ann Arbor. various incentives, worth a com- tives since it opened in early 2011 port completed by the Film Office sury, which in 2010 reviewed the Torielli and Frank Aiello, an as- bined $13 million of the $25 million — “Oz, the Great and Powerful,” a Thursday. But Raleigh may also project and approved the state re- sociate Cooley professor and for- that the Film Office expects to allo- prequel to the classic “Wizard of have received a portion of another tirement system’s guarantee. mer banking attorney at Bodman cate by the end of fiscal 2012, said Oz,” which wrapped production in nearly $18 million spent on food, That’s an average of $23 million plc, both said they could not recall film office director Carrie Jones. December under director Sam Rai- equipment and material rentals in projected revenue per year, al- any municipal bond or any other At 40 percent of project cost, that mi for a 2013 release. and other services though lower revenue was antici- bond deal that included a provi- means the projects have a combined And while it is courting other Regardless, Raleigh has made pated for the first three, according sion like it. budget of just over $30 million. film projects, a source familiar $1.47 million in three payments to to a report submitted to Treasury “I’ve never seen something like The Film Office approved 24 pro- with the studio business said it is bondholders since Feb. 1, 2011, ac- by Deloitte LLP in late 2009. that before,” Torielli said. jects in 2011 for film incentives, unlikely to make interest payments cording to state officials and But even so, the estimate as- Douglas Drake of Lansing, seven of which have yet to be due Aug. 1 unless the state changes records obtained under the Michi- sumed a 50 percent occupancy rate chairman of the nine-member filmed in 2012, including “Domes- course on incentive restrictions gan Freedom of Information Act in the first year for the studio’s state retirement system board, tic Justice.” That’s compared to 66 adopted in February 2011. from the Oakland EDC. 300,000 square feet of office space said the pension funds’ portfolio is projects the office approved in “It really all depends on the The county agency agreed in — separate from the 170,000 square “incredibly well-diversified” and 2010, including “Oz.” state of Michigan and whether or 2010 to issue three series of private feet in studio and mill space — covering Raleigh Studios will not Sue Marx, documentary film- not they’re going to honor their activity bonds totaling $28 million, which is nearly empty. endanger pensions. maker and president of Birming- commitment, made in 2008, to sup- with Michigan Motion Picture Stu- The retirement system had ham-based Sue Marx Films Inc., and port the film industry,” the source dios as the private borrower, to more than $10 billion in assets in Marcia Fishman, executive direc- said. “The studio was built based help finance the studio project. ‘Unusual’ investor terms late 2010. Drake and Stanton said tor of the Screen Actors Guild chap- on that commitment. (If) the state The first series for $18 million In addition to the bonds, the stu- the board does not make invest- ters in Detroit and Philadelphia, pulls their commitment and their was guaranteed by the state pen- dio project financing also included ment decisions and relies on Trea- both said theater contracts and funding to a level that’s unsustain- sion plan; the other two series to- another $5 million put up collec- sury as its fiduciary. production business have dimin- able, the bond payment will not be taling $10 million are subordinate tively by the studio owners, plus “I am uncomfortable with these ished greatly in the state in the made in August.” bonds bought by the Michigan Mo- another $30 million loaned by U.S. kinds of investments. Historically past year. Nelson declined to comment on tion Pictures co-owners them- Bancorp, which is the trustee of the over the years there have been all Marx said she is not surprised to the status of bond payments. Gov. selves and/or their immediate bonds. kinds of these things that have hear that studios like Raleigh may Rick Snyder’s press secretary, families, with no guarantees. U.S. Bancorp created the Michi- gone bad,” Drake said. “These re- have suffered from the change. Sara Wurfel, said the governor’s In return for guaranteeing the gan Motion Picture Studios Investment ally need to be the rare exception.” “We’re competing with some proposed fiscal 2013 budget re- first series of bonds, the retirement Fund to hold its $30 million invest- Rebecca Sorensen, senior vice other states that have been doing leased in February also continues system was to receive a 2.5 percent ment plus the $28 million in bonds. president and wealth adviser at this longer, and doing it better. It to cap state film reimbursement annual credit enhancement fee in U.S. Bancorp, Fifth Third Bank, UBS Financial Services Inc. in Birm- was just a budding industry here, incentives at $25 million, just as it quarterly installments. The fee Stonehenge Partners Inc. and the ingham and one of two board mem- that was moving along wonderful- has done for this budget year. was estimated to generate about Michigan Magnet Fund each created bers of the Oakland County Eco- ly well before (the cap),” Marx “(Snyder) believes the film and $450,000 a year for the retirement Community Development Enter- nomic Development Corp. who said. entertainment industry does have system if payments came in on prises to collect seven-year, 39 per- voted against the bond deal, said The 2008 legislation that created value in Michigan but needed to time, said Terry Stanton, commu- cent federal New Market Tax Cred- she was “saddened and disappoint- the film tax credit had broad bipar- have another way to be supported, nications director for the Michigan its awarded to investments in ed” to see Raleigh Michigan miss a tisan support, the source familiar projects in distressed areas. payment on the bonds. with Raleigh noted, winning the Those tax credits were assigned But she also said the bond pro- vote of almost every Republican to the investment fund, and U.S. posal had unconventional terms lawmaker in the state House and Bancorp uses the credits. In ex- that were part of the reason she Senate. change, Fifth Third, Stonehenge voted against it. “As a result of that initiative and Michigan Magnet are paid loan that they took on, any reasonable origination and management fees. person could have concluded that U.S. Bancorp declined to com- Not alone there was so much bipartisan sup- ment to Crain’s. Other studios and production port that this was going to be a Using the tax credits requires a companies are feeling the same nice 10-year plan, and they would “forbearance” agreement against pain, after relying on the original review it at the end of 10 years,” collecting from a borrower in de- Michigan film incentives law as the source said. “It didn’t last – it fault over the seven years of the adopted in early 2008. was eviscerated before the studio credits. In Raleigh’s case, that’s Jeff Spilman, managing partner was even opened.” Business on Need growth capital? When businesses seven years from July 2010. The of Ferndale-based S3 Entertainment Since “Oz” wrapped, the studio’s face the up-and-down demands of bonds also have the requirement Group, said he let go of a staff of near- pipeline is dry, the source said. the rise? growth, purchasing goods, or even to make because they’re part of the invest- ly 30 within weeks after the cap “Hopefully there are some pro- payroll, Crestmark’s service and ment fund that creates eligibility went into place last February, and posals, but the well has been for innovative solutions can be the answer. for the credits. he recently renegotiated his lease Michigan so poisoned, out in Hol- That means U.S. Bancorp would terms with his landlord so that he is lywood, that nobody’s quite sure Providing asset-based lending/lines of credit have to wait until July 2017 to re- only using about 1,500 square feet what the future’s going to bring,” to small- and mid-sized businesses coup any delinquent payments on for his own office, of the 20,000 the source said. “People don’t nationwide for over 15 years. the $30 million loan, but that square feet that S3 used to occupy. come and spend that kind of mon- would be mitigated in part by hav- The rest is expected to be sublet ey with the uncertainty that there Call me today for more information. ing the benefit of the tax credits. for storage or warehousing space is.” Bondholders and the state re- to another tenant. Chad Halcom: (313) 446-6796, tirement system aren’t so lucky. S3 obtained an incentive last [email protected]. Twitter: Matt Dekutoski They don’t have tax credits and year to produce a pilot episode of @chadhalcom www.crestmark.com 248.267.1647 | [email protected] would have to wait until 2017 to the proposed “Domestic Justice,” Staff writer Nancy Kaffer and OVER $200,000,000 PROVIDED TO NEW CLIENTS IN 2011 take action. featuring Wayne County Circuit Mike Turner contributed to this re- Albert Bogdan, chief business Court Judge Vonda Evans resolv- port. 20120305-NEWS--0025-NAT-CCI-CD_-- 3/2/2012 4:58 PM Page 1

March 5, 2012 CRAIN’S DETROIT BUSINESS Page 25 Partners: Pair has full plate of developments www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] cupy nine properties housing 15 restaurants and beer labels, Carl- the restaurants, I don’t see where with different atmospheres; North EXECUTIVE EDITOR Cindy Goodaker, (313) 446- restaurants throughout Michigan son and Lobdell own a vineyard in there is a big downside,” he said. Peak is a woodsy-decorated brew- 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- — a total of 100,000 square feet of Northern Michigan, where they But both Carlson and Lobdell pub while Kilkenny is an Irish 1622 or [email protected] restaurant space. are developing a wine label called admit their first foray into multi- pub. DEPUTY MANAGING EDITOR Daniel Duggan, (313) The business partners also are Bonafide Wine, which sells Riesling, unit concepts in 2003 could very The two restaurants have a few 446-0414 or [email protected] SENIOR EDITOR Bob Allen, (313) 446-0344 or building a large-scale brewing fa- Pinot Noir and Chardonnay wine. well have ended in failure. duplicate menu items such as Gor- [email protected] cility at a yet-to-be-disclosed for- Last year, the company sold about Lobdell said the Bastone com- gonzola ale dip ($8.50) and the WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- 8158 or [email protected] mer auto plant site in Washtenaw 7,500 cases. plex was profitable but difficult to haystack pastrami sandwich COPY DESK CHIEF Gary Piatek, (313) 446-0357 or County. Carlson and Lobdell also are cre- run because of the divergent types ($9.95). Entrees at North Peak av- [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) Carlson and Lobdell own three ating a line of Michigan-sourced of cuisine. That’s why the partners erage $17.95, while the most expen- 446-1608 or [email protected] separate craft beer labels: Traverse spirits called Civilized Spirits, in- are now pushing to group similar sive entree at Kilkenny is the herb- DATA EDITOR Brianna Reilly, (313) 446-0418, City-based North Peak Brewing cluding vodka made from cherries, restaurants together. roasted chicken, at $13.95. [email protected] WEB DEVELOPER Steve Williams, (313) 446- Co.,which sells its beer in 12-ounce rum made from sugar beets and The 17,000-square-foot Bastone Steve Wagenheim, founder of St. 6059, [email protected] six-packs throughout Michigan and gin made from hops. complex, which occupies the Louis Park, Minn.-based Granite WEB EDITOR Gary Anglebrandt, (313) 446-1621, [email protected] Ohio; Dexter-based Jolly Pumpkin Ar- “2012 will be the busiest year we northeast corner of Main and Fifth City Food and Brewery Inc., said the EDITORIAL SUPPORT Robertta Reiff (313) 446- tisan Ales,sold in 750-milliliter bot- have ever had,” Carlson said. “It’s streets, includes Bastone, Café Ha- success of brewpubs like Jolly 0419, YahNica Crawford, (313) 446-0329 tles in all 50 states; and Ann Arbor- manically busy, but I think we will bana, Vinotecca and a basement Pumpkin and Bastone led his com- NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 based Grizzly Peak, a high-alcohol settle into a nice, steady growth in bar called Commune. pany to build a 9,800-square-foot REPORTERS beer label still under development. 2013.” To maximize space, Lobdell and Granite City brewpub on Big Daniel Duggan, deputy managing editor: Covers Carlson said the company is Carlson are moving the Royal Oak Beaver Road in Troy. real estate. (313) 446-0414 or [email protected] building the manufacturing facili- Café Habana to another undis- “We would rather go into a mar- Jay Greene, senior reporter: Covers health care, Pub pairings insurance and the environment. (313) 446-0325 or ty because it is having a hard time closed location in downtown Royal ket that has already accepted craft [email protected] meeting demand for its North The restaurants remain the Oak to make room for Monk, a Bel- beer products,” Wagenheim said. Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland Peak and Jolly Pumpkin beers. backbone for all of the 2 Mission gian restaurant with menu items The 330-seat restaurant is the and Macomb counties. (313) 446-6796 or “We grew by about 150 percent in endeavors; beer, wine and spirits such as steamed mussels and 28th in the company and is expect- [email protected] Tom Henderson: Covers banking, finance, 2011, and we are physically out of sales accounted for just $2.5 mil- pommes frites, a complement to the ed to open by the end of March. technology and biotechnology. (313) 446-0337 or room; we have orders lined up that lion of total revenue in 2011. fare currently sold in Bastone. In Ann Arbor, Lobdell and Carl- [email protected] Nancy Kaffer: Covers small business, the city of we cannot fulfill,” Carlson said. Over the years, Lobdell and The partners are also applying son are building a bar called Mash Detroit and Wayne County government. (313) 446- 0412 or [email protected] Carlson have succeeded by placing the complementary concept at a beneath the landmark Blue Trac- Bill Shea, enterprise editor: Covers media, multiple restaurant formats in a Traverse City property and else- tor that will serve craft beers and advertising and marketing, the business of sports, Craft beer works and transportation. (313) 446-1626 or single property. Several of their where around the state. In 2006, the mixed drinks. [email protected] The company is looking to spend most profitable restaurants are in pair purchased the Bowers Harbor Café Habana, meanwhile, is Nathan Skid, multimedia editor. Also covers the food industry and entertainment. (313) 446-1654, about $3.5 million to convert the multi-restaurant buildings. Inn in Traverse City on the Old Mis- moving into an 8,000-square-foot [email protected] former plant into a brew house “The restaurants that function sion Peninsula for $2.2 million. In space at Main and Liberty streets Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or and bottling facility, which will in- the best in one space are similar in 2009, they opened the Jolly Pump- in downtown Ann Arbor. The [email protected] crease its brewing capacity with concept,” Carlson said. kin in the site of the casual restau- new space will house Lana Ha- Dustin Walsh: Covers auto suppliers, steel, higher education and Livingston and Washtenaw the ability to brew up to 70,000 bar- Scott Griffin, president of South- rant on the historic site, The Bow- bana on the first floor and Café counties. (313) 446-6042 or [email protected] rels of beer a year. field-based restaurant real-estate ery. In 2010, they closed Bowers Habana in the basement. Lana ADVERTISING “Jolly Pumpkin is only meeting brokerage firm Griffin Properties Harbor Inn and opened Mission Habana will have a modern ADVERTISING DIRECTOR Marla Wise, (313) 446- 20 percent of its orders world- Inc., said efficiency is one of the Table, a restaurant where most of Cuban menu. 6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) wide,” Carlson said. “This expan- major benefits of having multiple the ingredients are locally sourced. “I don’t know where we got the 393-0997 sion will help us meet the demand restaurants in one space. In 2006, 2 Mission also opened idea to put more than one restau- SENIOR ACCOUNT EXECUTIVES: Matthew J. for our product.” “The only operating issue that Kilkenny’s Irish Public House, a 7,000- rant in one space,” Carlson said. Langan,Tamara Rokowski ADVERTISING SALES Christine Galasso, Lori The facility should be opera- may arise is appropriating your square-foot pub, beneath North “I think we thought it sounded Tournay Liggett, Dale Smolinski tional in about six months. cost to each concept,” Griffin said. Peak Brewing Co. in downtown Tra- fun, that you could go into a loca- CLASSIFIED SALES (313)-446-0351 MARKETING DIRECTOR Jeff Kapuscinski Total revenue for 2 Mission LLC “If you share a fridge, stove and verse City. tion (and) rather than eat and EVENTS DIRECTOR Nicole LaPointe reached $29 million in 2011, up oven — it can be hard to get a han- walk away, you could stay and EVENTS COORDINATOR Kacey Anderson from $26 million in 2010, and Carl- dle on item cost.” have a fully different experi- SENIOR PRODUCER FOR DIGITAL/ONLINE More strategic planning PRODUCTS Pierrette Dagg son expects that number to reach Griffin said he currently has a ence.” MARKETING ARTIST Sylvia Kolaski $33 million in 2012 and $36 million restaurateur looking to put two Carlson said North Peak and Nathan Skid: (313) 446-1654, SALES SUPPORT Suzanne Janik, YahNica Crawford in 2013. restaurants in one space. “If you Kilkenny work well together be- [email protected]. Twitter: AUDIENCE DEVELOPMENT MANAGER Candice Yopp In addition to the cadre of have the same operator running cause they serve similar fare even @NateSkid MARKETING COORDINATOR Jenny Griffith PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams CUSTOMER SERVICE MAIN NUMBER: Call (877) 824-9374 or write [email protected] SUBSCRIPTIONS $59 one year, $98 two years. Beaumont: Recruiting new department chairs Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or ■ From Page 3 (877) 824-9374. SINGLE COPIES: (877) 824-9374 those structures in place that will M.D., emergency medicine; and Al- ical staff. Most understand what is replacing Ernest Krug, M.D., who REPRINTS: (800) 290-5460, ext. 125; allow the departments to grow varo Martinez, happening because of the medical has retired, as director of clinical (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com even more,” Wood said. M.D., radiation school and health care reform.” bioethics. TO FIND A DATE A STORY WAS PUBLISHED: Most of the department chair po- oncology. The Until a search for permanent Wood said the transition to a (313) 446-0367 or e-mail [email protected] sitions have been posted, Wood physicians could chairs is completed, Beaumont has systemwide approach in clinical CRAIN’S DETROIT BUSINESS IS PUBLISHED BY said. Job requirements for most not be reached appointed John Robertson, M.D., departments at the three hospitals CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain department chairs now include for comment. as interim chairman of radiation will increase quality, reduce costs PRESIDENT Rance Crain teaching, education, research and While Beau- oncology and Alan Koffron, M.D., and allow for unified planning. SECRETARY Merrilee Crain oversight of clinical departments mont says Mar- as interim chairman of surgery. “The departments can share re- TREASURER Mary Kay Crain Executive Vice President/Operations across Beaumont’s three hospitals. tinez resigned, Wood said chairs of two of the sources, share cases, common buy- William A. Morrow “It takes a different skill set than Michael Pitt, an departments, psychiatry and neu- ing to get best prices, share best Group Vice President/Technology, Manufacturing, Circulation in the past when we didn’t have a attorney with rology, are newly created posi- practices across all hospitals,” Robert C. Adams Martinez Vice President/Production & Manufacturing medical school and operated more Royal Oak- tions that will help Beaumont ex- Wood said. “Wherever a patient Dave Kamis as independent hospitals,” he said. based Pitt McGehee Palmer Rivers & pand its community focus to an goes, they can expect the same pro- Chief Information Officer The outgoing clinical depart- Golden P.C. who is representing academic teaching and research tocols, not separate ones.” Paul Dalpiaz Chief Human Resources Officer ment heads, which include Jeffrey Martinez, told Crain’s that Beau- model. The psychiatry chair will Wood said Beaumont will be of- Margee Kaczmarek Maisels, M.D., chairman of the pe- mont “severed its relationship” be a systemwide position. fering fair market value salaries Director of Audience Development Operations diatrics department, have re- with Martinez last fall after he dis- The neurology chair initially for the new chairs. Beaumont de- Michelle Roth G.D. Crain Jr. Founder (1885-1973) signed or retired for various rea- agreed on the future direction of will be for the Royal Oak hospital clined to specify compensation Mrs. G.D. Crain Jr. Chairman (1911-1996) sons, Wood said. the oncology program. and later evolve into a systemwide amounts. EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) “I am stepping down after 26 Martinez, now with 21st Century position, Wood said. “Some primary care physicians 446-6000 years when they find a replace- Oncology of Michigan and Michigan Beaumont also is creating a are upset because the new chairs Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 ment. It is time to let somebody Healthcare Professionals, Southfield, health system chair for surgery will make a lot of money,” one is published weekly, except for a special issue the else do this,” Maisels said. “I will was chairman of radiation oncolo- who will help standardize supply Beaumont physician said. “They third week of August, and no issue the third week of December by Crain Communications Inc. at stay on in the department, teach gy for 27 years. He came to the U.S. purchasing, and work with sur- want to be a great academic med- 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and and do research.” after graduating from medical geons to create best practices, ical center. But they will never be additional mailing offices. POSTMASTER: Send At least three other former school in Bogota, Colombia. Wood said. a Mayo or Cleveland Clinic. The address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, chairs were asked to resign, said “With the exception of Alvaro, At the director level, Beaumont market is too competitive and the MI 48207-9732. GST # 136760444. Printed in several Beaumont physicians who there aren’t a lot of objections is seeking to hire a medical direc- demographics are changing.” U.S.A. Entire contents copyright 2012 by Crain asked not to be named. from the chairs,” said one of the tor for the newly created Beaumont Jay Greene: (313) 446-0325, Communications Inc. All rights reserved. They are Stanley Berry, M.D., ob- Beaumont physicians. “There isn’t Cancer Center, said Wood, who is [email protected]. Twitter: Reproduction or use of editorial content in any manner without permission is strictly prohibited. stetrics and gynecology; Jedd Roe, a big insurrection from the med- interim director. Beaumont also is @jaybgreene 20120305-NEWS--0026-NAT-CCI-CD_-- 3/2/2012 6:14 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS March 5, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 25-MARCH 2

state residents — and you America in Canton Town- treasurer and college fra- don’t even have to be a CEO Report: Wayne ship, formally pleaded ternity brother of Kil- to participate. guilty in U.S. District Court patrick’s, could face 20 Faris gets The business roundtable in Detroit for its involve- years in prison on conspir- group launched an online County faces ment in the global price-fix- acy and extortion charges sweepstakes last week, offer- ing and bid-rigging conspir- related to more than $200 ing $1,000 in prizes to resi- acy. The Tokyo-based million in investments he second try at dents who “upload a photo, smaller deficit company agreed to pay the approved for Detroit’s Gen- film a short video, or enter a U.S. government $470 mil- eral Retirement System and written submission (200 ayne County has lion — the second largest the Police and Fire Retire- words or less) describing an across-the- federal fine ever imposed ment System. their vision for the New W board deficit of on a single company. Ⅲ Macomb County Execu- denim launch Michigan.” $154 million for the fiscal Ⅲ The University of Michi- tive Mark Hackel said his of- Doug Rothwell, CEO and year ending Sept. 30, ac- gan Health System in Ann fice filed a lawsuit against ocal fashion designer Troy-based John Bailey & Asso- president of the group, called cording to a report by Audi- Arbor and Novi-based Trini- the Macomb County Board of Joe Faris plans to ciates, the firm’s president, it a fun way to engage Michi- tor General Willie Mayo. ty Health-Michigan have Commissioners to challenge a L launch a denim Jeff Lambert, calls the move gan residents in thinking That’s $99 million less than signed an affiliation agree- contracting policy passed brand this month with an exciting development for about the state’s future — the deficit in the previous ment that is expected to ex- last month that limits his ex- Denise Ilitch, co-creator of the 15 local employees. and, of course, educating res- fiscal year, and a general pand patient care, reduce ecutive capabilities, saying Ambassador Magazine. He wasn’t ready to dis- idents about the business fund deficit of $45 million is costs and improve the coor- the board’s new policy ig- Ilitch and close the specific location group’s updated state turn- expected for fiscal 2012. dination and quality of nores what’s written in the Faris this yet, however, noting that around plan and “New The report also said a care. The agreement ap- Macomb County charter year are the several locations are under Michigan” strategy, unveiled turnover in the county’s plies statewide to Trinity’s and the separation of pow- lead orga- consideration. last month. management and budget of- 12 hospitals, UM’s three ers it created. nizers of Here’s one hint: The folks The deadline to enter is fice have contributed to hospitals and more than a Fashion in with the Detroit Opera House midnight April 20. Details problems with cash fore- dozen outpatient centers. Detroit, a confirmed that they have a and entry instructions are at casts, and the county’s Ⅲ The Oakland Integrated OTHER NEWS March 10 potential deal in the works to Facebook.com/michiganturn- practice of using restricted Healthcare Network has Ⅲ Quicken Loans Inc. is move a company from the Faris showcase of aroundplan. funds to pay general fund agreed to take over man- looking to fill 1,400 jobs, local fash- suburbs into the 8,500- expenses is prohibited. agement of the family medi- with most positions slated ion talent at MotorCity Casi- square-foot space they have cine center at Doctors’ Hospi- for downtown Detroit. vacant on Broadway Av- Political TV spending hits no Hotel — which is owned ON THE MOVE tal of Michigan in Pontiac About 300 positions are in by Ilitch’s mother, Marian. enue. So, either that’s the $7.5 million in state and plans this month to ap- technology, but jobs also The new denim brand deal, or we’ll have another Ⅲ Hatch Detroit has hired ply to expand the clinic. are open for underwriters will be launched at the one to write about in the Total presidential cam- Vittoria Katanski as its first and other mortgage proces- show, Faris said. near future. paign TV advertising executive director. She will sors and in marketing, hu- It’ll be his second recent statewide hit $7.5 million remain marketing director COURTS man resources, accounting attempt at a denim line. Sole Sisters stores each during the first quarter, and for the Southwest Detroit Ⅲ Judge William Collette and finance. In November, Faris and $3.5 million of that was in the Business Association. of Ingham County Circuit Ⅲ UAW President Bob Sterling Heights-based TD In- have own financial footing Detroit market, the Michigan Ⅲ Tom LaSorda, former Court, who compelled a re- King said a coalition of Campaign Finance Network re- dustrial Coverings Inc. amica- The company that owns CEO of view team to hold public unions will push for an ported last week. bly parted ways after the the Ann Arbor Sole Sisters Chrysler meetings on Detroit’s fi- amendment to the Michi- Mitt Romney, the narrow “Motor City Denim by Joe boutique is filing for Chap- Group, has nances, has ordered its 10 gan Constitution that bars winner in Tuesday’s Repub- Faris” line of casual wear ter 7 bankruptcy protection, been pro- members to appear before so-called right-to-work leg- lican primary, spent $1.4 ran into troubles, including but that won’t affect the oth- moted to him in court after the team islation outlawing con- million, of which $706,000 sewing equipment problems er Sole Sisters stores. CEO of the put together a five-member tracts that require employ- was in Detroit. The pro- and marketing difficulties. It While the boutiques financially subcommittee to keep some ees to join unions. Romney super PAC Restore had been launched in July. share the same name, each troubled of its talks private. Ⅲ The city of Detroit is Our Future added another TD Industrial Coverings, is independently owned un- Anaheim, Ⅲ The Michigan Depart- still on track to run out of $1.9 million in statewide TV which owns the line, plans der a license agreement, Calif.-based ment of Treasury has appealed cash by the end of April, ac- spending, with $707,000 LaSorda to continue to use the Motor said founder Nichole Sterling, Fisker Auto- a Michigan Tax Tribunal ruling cording to a forecast posted done locally. City Denim Co. name for its who is also operator of the motive Inc. He had been vice on the tax treatment of tele- at www.detroitmi.gov, with Republican challenger new apparel division. Royal Oak Sole Sisters. chairman. Co-founder and vision broadcast revenue just $76 million cash on Rick Santorum spent just un- There are stores in CEO Henrik Fisker will be- from Detroit Pistons basket- hand at the end of January, der $1 million in Michigan, Rochester and Detroit as come executive chairman. ball games. The appeal according to the report. with $430,000 coming in De- PR agency branch coming well. “The rest of the Sole Ⅲ General Motors Co. said stems from the team’s Au- Ⅲ The Detroit Symphony troit. The pro-Santorum Red Sisters are here and not go- Linda Marshall, who took gust 2008 appeal to the tri- Orchestra and Kid Rock are downtown from Troy White and Blue Fund super ing anywhere,” she said. over as bunal regarding Treasury’s hoping to raise $1 million The Troy office of Lambert, PAC spent $1.1 million president of inclusion of net broadcast for the DSO by performing Edwards & Associates will be statewide and $564,000 in De- its Detroit- revenue in the basketball together May 12 at the Fox moving to a new downtown Contest offers cash troit. based On- company’s Single Business Theatre. Rock and his band Detroit location in the near for ‘new Michigan’ look President Obama and his al- Star LLC Tax base for the tax years are donating their services. future. lied Priorities USA Action super telecommu- ending June 30, 2002, Ⅲ The Salvation Army of Roughly two and a half Business Leaders for Michi- PAC spent a combined nications through June 30, 2004. Metro Detroit’s annual Bed years since the Grand Rapids gan wants to know what “the $764,000 in Michigan in the business in Ⅲ Former franchisee and Bread Club Radiothon firm acquired the formerly New Michigan” looks like to first quarter. February David Abbo has to pay raised more than $1.7 mil- 2011, has Marshall $487,000 in legal fees to Wire- lion Feb 24. left the less Toyz Inc. — two years af- Ⅲ Dominic Cristini, who company to pursue other ter a jury awarded him claims ownership of the interests. Terry Inch, On- more than $200,000 from the Packard plant through Biore- Star’s director of sales, Southfield-based company. source Inc., says he is await- marketing and business Judge Shalina Kumar of ing permits to demolish BEST FROM THE BLOGS planning, will oversee the Oakland County Circuit Court most or all of what remains READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS company in the interim. overturned the verdict a of the plant. Ⅲ WADL-Channel 38’s new- year ago, ruling that the Ⅲ The FBI has formed a Snyder fears for defense jobs Garden City Hospital for sale? ly hired news director, Matt original trial judge had task force of federal, state Stevens, was fired when he erred in his instructions to and local officials to uncov- While politicians It appears two showed up for his first day the jury. er and prosecute public cor- clamor“ to maintain straight“ years of of work last week, the De- Ⅲ Former Detroit Mayor ruption in the Detroit area. weapons systems and financial losses, troit Free Press reported. Kwame Kilpatrick has been bases that provide local expected cuts in Stevens had been hired by ordered to pay $500 each jobs, military insiders Medicare payments and consultant Kevin O’Brien, month toward his restitu- OBITUARIES say the reality is that the need to become part who was terminated Feb. 23 tion to the state, up from Ⅲ Leo Catallo, former vice evolving defense needs of a larger organization by CEO Kevin Adell. mean painful cuts are as health care reform $160, beginning April 1. He president of Wheel Truing necessary. creeps closer has owes Detroit about $860,000 Tool Co. in Detroit, died Feb. changed the picture. of $1 million in restitution 24. He was 96. ” COMPANY NEWS as part of a plea deal to Ⅲ Don Housey, an attor- ” Ⅲ criminal charges in 2008. ney who also owned Mitch’s Reporter Bill Shea’s “For Immediate Release” blog on Reporter Jay Greene’s blog about health care, Japanese auto supplier the media, transportation and marketing can be found insurance and the environment can be found at Yazaki Corp., which bases its Separately, Jeffrey Bar in Detroit, died Feb. 16. at www.crainsdetroit.com/shea www.crainsdetroit.com/greene U.S. subsidiary Yazaki North Beasley, an ex-Detroit city He was 70. DBpageAD.qxp 2/28/2012 11:23 AM Page 1

Untitled-1 1 2/27/2012 4:41:19 PM DBpageAD.qxp 2/22/2012 10:41 AM Page 1

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