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Page 3 Investment State budget relies on Blues membership funding assumptions team may Marygrove expands sports, sees enrollment expand, too off 6% amid layoffs seek Pistons Inside Some small companies BLUE CROSS MEMBERSHIP UPS, DOWNS Appleby: ‘We would Want to give an intern an Blue Cross Blue Shield of Michigan is losing jump to other insurers members overall while posting a slight increase award? See Mary Kramer’s in the number of individual members: definitely take a look’ column, Page 7; story, BY JAY GREENE Individual: Individual: BY BILL SHEA Page 8 CRAIN’S DETROIT BUSINESS 562,000 571,000 (+1.6%) CRAIN’S DETROIT BUSINESS Group: Group: Blue Cross Blue Shield of Michigan lost 236,000 4.14 million 3.89 million (-6%) The Detroit Pistons may become the target Focus: Law members in 2009, the single largest decline of of an investment consortium that includes policyholders in the past 10 years. Total: Total: the owners of three U.S. pro sports franchis- 4.69 million 4.46 million Top verdicts, settlements Primarily due to the poor economy and lay- es and is publicly front- offs in the auto industry, total membership in 2008 2009 ed by a Rochester busi- of 2009, Blue Cross group accounts dropped 6 percent, Source: Blue Cross Blue Shield of Michigan nessman. bringing membership in groups and individual “It’s something that Pages 11-16 products to 4.46 million, down from 4.69 million Sixty percent of the losses were in self-funded we would definitely in 2008, said Ken Dallafior, Blue Cross’ senior companies, and 40 percent were in the small- take a look at,” said vice president for group sales and corporate group market of companies less than 100 em- Andy Appleby, chair- marketing. ployees, Dallafior said. man and CEO of mar- “We had anticipated significant membership “Some small groups went out of business or keting and manage- losses because of the difficult economic times,” no longer offered coverage,” he said. “(Those ment firm General Sports Dallafior said. “Most of the in-group losses are employees) either went to the individual poli- and Entertainment L.L.C. due to shrinking workforces cies or went uninsured.” Appleby, who was Wilson in the automotive sectors.” In addition to the poor previously an executive During the fourth quarter We had anticipated economy, Mike Krause, for the company that ARENA EFFORT of 2009, Michigan’s unem- “ president of Krause Benefits manages the Pistons, is ployment rate climbed to significant in Farmington Hills, said an investor and chair- Ilitch move: Hiring 14.2 percent from 9.5 per- Blue Cross also has lost man of Derby County F.C. Tom Wilson seen cent in the same period of small-group members be- as step toward new Crain’s Lists membership Ltd., an English profes- Red Wings venue, 2008. Southeast Michigan’s cause other insurers have sional soccer team (and Page 28 Largest Asian-owned, unemployment rate in- losses because offered lower prices. its 33,597-seat Pride creased to 15.7 percent “Blue Cross is not price Park Stadium) that he Hispanic-owned and Native from 9.9 percent during the of the difficult competitive. In terms of co-owns with a group that bought the team American-owned same periods. cost of products, Blue for $100 million in January 2008. Dallafior said Blue Cross economic Cross has the most expen- The group wants to buy a team in one of businesses, Pages 20-21 is projecting additional sive products in Michigan,” the U.S. major leagues, for $200 million to membership losses this times. Krause said. “I have written $300 million, within the next 12 months, Ap- year, although in smaller ” This Just In numbers. Ken Dallafior, Blue Cross See Blue Cross, Page 26 See Pistons, Page 28 State board OKs forms for casino petition drives The Board of State Can- Plans for college prep high schools get $13M kickoff vassers on Friday approved petition forms for two groups seeking casinos to move for- BY SHERRI WELCH logg Foundation and three metro dation commitments, Michigan $38 million to open 28 additional, ward with drives to put the CRAIN’S DETROIT BUSINESS Detroit foundations — the Skillman Future has begun making grants college-prep high schools by 2018. Foundation, Kresge Foundation and to open the first of “Whenever measures on Michigan’s No- Four Michigan foundations vember ballot. McGregor Fund — have committed seven new high we talk about have committed $13 million to initial funding. schools over the talent in One measure, proposed by open the first of 35 new college This is Hazel Park-based Racing to “The impetus next three years. “ Southeast preparatory high schools planned for this was the Those schools Michigan, Save Michigan, would allow for metro Detroit over the next a growth the Michigan Gaming Control foundations … will commit to we’re always eight years. wanting to do graduating 85 per- strategy talking about Board to issue licenses to up Ann Arbor think tank Michigan to eight new Michigan casi- this to scale … cent of their stu- bringing in Future Inc. is heading up an effort to rather than do- dents, having for our new talent. … nos, five of which would be at provide startup funds and techni- horse racetracks that in 2009 ing one school at 85 percent of those We rarely talk cal assistance to the new high a time like they go on to college and region. about grow- See This Just In, Page 2 schools. had been do- helping 85 percent ” ing our own,” said The Battle Creek-based W.K. Kel- ing,” said Michi- of those college stu- Tonya Allen, Skillman Foundation Tonya Allen, vice Glazer gan Future Pres- dents stay in president of pro- ident Lou Glazer. school and earn their degrees. gram at Skillman and chairwoman The foundations felt it was time Michigan Future and a new of the Michigan Future Schools to take what the community had high school governing council — governing council. “This is a learned from starting a variety of composed of representatives from growth strategy for our region — high schools — such as University Michigan Future Schools’ initial we have to prepare young people Prep in Detroit and University High funders, Ford Motor Co. Fund, Detroit to be competitive in the new econo- School in Ferndale — and do some- Parent Network, Cranbrook Schools my.”

NEWSPAPER thing big, Glazer said. and Nataki Talibah Schoolhouse of With $13 million in initial foun- Detroit — hope to raise another See High schools, Page 27 20100301-NEWS--0002-NAT-CCI-CD_-- 2/26/2010 6:28 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS March 1, 2010

Oak location in March with a new Hotel saves liquor license its appeal of Edwards’ Feb. 1 deci- THIS JUST IN The way it was: 1991 store at 32808 Woodward Ave., sion that the company has three south of 14 Mile. Last Monday, the Rochester weeks to submit a plan and ■ From Page 1 Throughout our 25th-anniversary The opening of the store marks City Council set a March public timetable to remove the struc- year, Crain’s will use this space the Aurora, Ill.-based chain’s hearing to recommend the Royal tures. conducted live racing with pari- to look at interesting items from fourth store in metro Detroit and Park Hotel in Rochester lose its Bridge owner Manuel Moroun mutuel wagering. past issues. its 49th location nationwide. liquor license, citing that the wants to build a new, larger span The new casinos would be sub- It is the company’s second Roy- high-end hotel had not paid its adjacent to the 81-year-old Am- ject to a wagering tax of 30 percent It’s superior in selection, al Oak store, with the first near 11 $110,000 tax bill for 2008. bassador Bridge and the construc- of their adjusted gross receipts, “ Mile and Main Street. Four days later, on Friday, the tion ruled illegal was part of that the petition language states. and the people — Daniel Duggan hotel paid its taxes. Rochester project. Under the proposal, 75 percent City Manager Jaymes Vettraino said MDOT filed suit in October of the tax revenue would be paid were so dog- the public hearing will still be saying that Detroit owns the land to the state for deposit into a fund Sen. Thomas lends support to held, but the only reason to hold it on which the structures were that would be used for purposes goned nice. was the tax issue, which is no built, and that Moroun’s projects such as education, job training metropark plan for fairgrounds longer valid. were illegal and not in accor- A phone message was left Fri- and economic development. Not syrupy sweet, but State Sen. Buzz Thomas, D-De- dance with the $230 million Am- day for Jay Haratsis, general man- Twenty percent of the tax rev- troit, is expressing tentative sup- bassador Gateway project that ager of the hotel, but the call was enue would be paid to the state informative and helpful. port for a proposal that would con- added new ramps and connec- not returned in time for deadline. for distribution to counties, ” tinue the Michigan State Fair under tions to the bridge and adjoining — Daniel Duggan based on population. The remain- Bob Young, the Huron-Clinton Metropolitan Au- highways. der would go toward county and Wal-Mart shopper thority. — Bill Shea local governments where the The authority’s board of com- From a July 1, 1991, article about Legal battle over Ambassador casino is located. missioners voted last week to ex- The second group, called Michi- Wal-Mart’s growth in Michigan TV shops added to Art Van stores plore signing a long-term lease Bridge structures continues gan Is Yours, proposes to authorize markets. Young was interviewed at with the state for the fair- Warren-based furniture retail- up to seven casinos. Locations the newly opened store in Port The Detroit International Bridge grounds, creating a metropark at er Art Van Furniture has made a would be at Detroit Metropolitan Air- Huron. It was one of the first Co. on Feb. 19 sought from the locations where Wal-Mart, Target the site and continuing the state deal with a California-based com- port and in Detroit, Romulus, Michigan Court of Appeals a stay and Troy-based Kmart faced off. fair. pany to sell TVs in the 31 furni- Lansing, Flint, Benton Harbor pending appeal of Wayne County The commissioners asked find- ture stores around the state. and Muskegon. Circuit Judge Prentice Edwards’ ings to be prepared in 60 days. In March, Paul’s TV will open The petition form states that ruling that said the new duty-free Michigan’s constitution and re- small stores within five stores: casinos would pay a wagering tax In a letter to constituents, store, toll booths and fuel pumps quire 380,126 valid signatures to Warren, Lakeside, Westland, Roy- of up to 19 percent on their adjust- Thomas — in whose district the at the Ambassador Bridge were go on the ballot. al Oak and Taylor. ed gross receipts. fairgrounds are located — said built illegally and must be torn The deadline for backers to sub- The remaining 26 stores will be Revenue would go toward the he’s watching the issue closely. down. mit signatures is July 5. completed by September, the com- Michigan Promise scholarship But the senator cautioned that The court hasn’t ruled on the — Amy Lane pany said. program, K-12 education, Pure any plan to create a metropark at stay and no action has been sched- Paul’s TV is expected to hire Michigan tourism campaign, and the fairgrounds must have fund- uled, said Leslie Jenkins, the court’s Oberweis Ice Cream adds store 150 new employees as part of the local and county governments ing, and said that funding must public information assistant. sales team for the state. housing casinos. Oberweis Ice Cream and Dairy not come from a tax increase. The bridge company asked for Both measures would amend Stores will open its second Royal — Nancy Kaffer the stay at the same time it filed — Daniel Duggan

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March 1, 2010 CRAIN’S DETROIT BUSINESS Page 3 State budget seeks federal help Inside cian’s tax and the consumer ser- Concern is finding a long-term solution vices tax “are three things out there that need BY AMY LANE money isn’t forthcoming there will would help the state draw down to happen, in or- CAPITOL CORRESPONDENT be more cuts to Medicaid provider more federal money for its der to salvage reimbursements or patient ser- strained Medicaid program. services.” LANSING — There are lots of vices. Those three measures are major But beyond Michigan eyes on Washington right It’s just one of the assumptions components of how Michigan the items’ mer- now, on the lookout for a key chunk Gov. Jennifer Granholm used to would close an otherwise $1.5 bil- its, or their United Way plans to help of the state’s proposed budget. base her proposed budget on. lion budget gap in the fiscal year chances of being The approximately $514 million Extending Michigan’s sales tax that starts Oct. 1. passed, is the schools feed more kids, the state would receive if Congress to consumer services would help To some, they are a necessity. question of how far they and oth- extends a higher matching rate for the state avoid what might other- Sharon Parks, president and Parks Page 17. Medicaid is of keen interest to wise be a $255 per-pupil cut in K-12 CEO of the Michigan League for Hu- er proposals in Michigan health and human ser- education, and a controversial tax man Services, said the federal Med- the governor’s budget go toward vices groups, who worry that if the on physicians’ gross receipts icaid match funding, the physi- See Budget, Page 29 Company index These organizations appear in this week’s Crain’s Detroit Business: Ackerman Ackerman & Dynkowski ...... 14 Blue Cross Blue Shield of Michigan ...... 1 Bridgewater Interiors ...... 15 Business System Solutions ...... 8 Marygrove to build center for new sports Butzel Long ...... 11 Center for Oral & Facial Surgery ...... 14 Chrysler ...... 12 women’s volleyball, adding 60 stu- Citizens Research Council of Michigan ...... 29 Smaller schools East side of Marygrove campus dent athletes in the fall 2009 semes- CMS Energy ...... 26 ter. Men’s and women’s golf pro- Detroit Economic Development ...... 3 grams are being developed. Detroit Economic Growth ...... 28 Planned golf McNichols Road Detroit Edison ...... 16 use athletics Marygrove competes in the Na- practice facility Detroit Edison Public School Academy ...... 27 tional Association of Intercollegiate Detroit Pistons ...... 1 to win students Athletics. Detroit Public Schools ...... 27 “We understood that in this day Detroit Red Wings ...... 28 BY RYAN BEENE and age many high school stu- Detroit Regional Chamber ...... 8 Detroit Tigers ...... 28 CRAIN’S DETROIT BUSINESS dents, transfer students, like the idea of continuing to play their Dickinson Wright ...... 11 Marygrove College plans to break Doeren Mayhew ...... 18 sport of choice while they are fo- Dykema Gossett ...... 12 ground this month on a 10-acre cused on getting their college edu- Eight Mile Style ...... 16 outdoor athletic development on Planned cation. And we made a commit- EnGenius ...... 13 its Detroit campus at 8425 W. Mc- soccer field ment as a college that we would EPrize ...... 4 Nichols Road. and track work to expand those opportuni- Estate Development ...... 15 The site — to include a running ties,” Fike said. Fisher Dynamics ...... 15 track, soccer field and golf practice Ford Motor ...... 13 Greenlawn Ave. Fike also credited new academic General Sports & Entertainment ...... 1 facility — will be the cornerstone programs — forensic science, Grubb & Ellis ...... 29 of Marygrove’s expanding inter- COURTESY OF GUNN LEVINE ASSOCIATES INC. dance, criminal justice and a Haggerty Corridor Partners ...... 14 collegiate athletic program and Marygrove College plans to use the 10-acre site marked by the dotted lines to health degree that leads to an ac- Ilitch Holdings ...... 28 highlights the college’s recent expand its athletic offerings as shown in this rendering. celerated nursing program — with Jaffe, Raitt, Heuer & Weiss ...... 12 Johnson Controls ...... 15 growth. fostering the enrollment growth. Marygrove’s enrollment of on- Krause Benefits ...... 1 “We’re up the highest we’ve cently has been the college’s ex- “It’s important to understand Kresge Foundation ...... 1 campus undergraduate students been in 15 years in on-campus (en- panding intercollegiate athletics that Marygrove’s growth is really MachineTools.com ...... 4 hit more than 1,300 in the 2010 win- rollment), and we’ve seen a 25 per- program. a holistic and integrated strategy Mantese Honigman Rossman & Williamson ...... 13 ter semester, up 10 percent from cent growth in on-campus under- Marygrove launched five new that’s bringing more students to Marygrove College ...... 3 the same period last year and up 25 grads just since four years ago,” athletics teams in 2009 — men’s Detroit,” Fike said. McGregor Fund ...... 1 percent since 2006, said Marygrove Fike said. and women’s soccer, men’s and Michigan Dept. of Transportation ...... 14 Michigan Economic Growth Authority ...... 25 President David Fike. Helping to spur that growth re- women’s cross country, and See Marygrove, Page 27 Michigan Future ...... 1 Michigan League for Human Services ...... 3 Miller, Canfield, Paddock & Stone ...... 11 Morganroth & Morganroth ...... 13 O’Keefe & Associates Consulting ...... 12 Palace Sports & Entertainment ...... 28 Plante & Moran ...... 18 I-94 industrial park: An idea whose time is past? ProQuest ...... 13 Rehman Financial ...... 18 Robert Gittleman Law Firm ...... 14

BY NANCY KAFFER VanDyke Secrest, Wardle, Lynch, Hampton, Truex & Morley . 15 8 Detroit Skillman Foundation ...... 1 CRAIN’S DETROIT BUSINESS Conant City Airport Smith Sivertson & Zahn ...... 14 Mt. Elliott Mt. Let’s call a 4-H club and say, ‘Plant some Over the past 10 years, Detroit’s Soble Rowe Krichbaum ...... 12 Caniff Huber “ Economic Development Corp. has The Miller Law Firm ...... 13 corn.’ There is no one coming to an I-94 United Way for Southeastern Michigan ...... 17 spent $8.6 million acquiring prop- Holbrook St. Cyril St. Aubin Valassis Communications ...... 11 erty to form an industrial park on industrial park. W.K. Kellogg Foundation ...... 1 the city’s east side. I-94 Industrial ” Park Today, the EDC controls about 75 Conrad Mallett Jr., DMC Sinai-Grace Hospital 90 percent of the land at the 189- 94 Department index acre site, home to just a few ten- Warren E. Grand Blvd. president of DMC Sinai-Grace Hospi- successes at the site but ques- ants occupying about 10 percent of tal, told fellow board members and tioned whether more would come. BANKRUPTCIES ...... 16 the available land. Detroit Detroit Economic Growth Corp. offi- Palmer asked DEGC staff to pre- BUSINESS DIARY ...... 24 With an intensive acquisition Gratiot cials at a meeting last week. “It’s pare a report on the status of the CALENDAR ...... 24 10 Mack process ahead — about 130 private- time to throw in the towel and say, project for the EDC’s next meeting. CAPITOL BRIEFINGS...... 26 ly owned parcels remain at the site CDB ‘It was a hell of an idea, but it’s not The EDC pays roughly $30,000 a CAREERWORKS ...... 22 — an EDC board member is asking working out.’ ” year to maintain the site, said CLASSIFIED ADS ...... 24 “We ought to begin to recognize Board Chairman Warren DEGC CFO Glen Long, spending for a course change, suggesting KEITH CRAIN...... 6 that the 1999 plan to assemble an that some of our best ideas are 10 Palmer, director of the city’s Plan- about $48,000 in 2009 because of an LETTERS...... 6 industrial park may be outdated in years old and reassess them,” EDC ning and Development Depart- MARY KRAMER ...... 7 2010 Detroit. board member Conrad Mallett Jr., ment, said there have been some See Industrial park, Page 29 OPINION ...... 6 OTHER VOICES ...... 6 PEOPLE ...... 23 We want to know! Estate tax law RUMBLINGS ...... 30 THIS WEEK @ Has Crain’s made a difference This Wednesday, talk to the experts about in your career? Tell us about it changes. Sign up for the Tax Estate Planning SMALL BIZ SOLUTIONS...... 6 WWW.CRAINSDETROIT.COM at crainsdetroit.com/yourstory Webinar: crainsdetroit.com/webinar STAGE TWO SOLUTIONS ...... 4 WEEK ON THE WEB ...... 30 20100301-NEWS--0004-NAT-CCI-CD_-- 2/26/2010 5:11 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS March 1, 2010

StageTwo Strategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly $1 million-$50 million and about 10- For more second-stage coverage, go feature that analyzes a recent 100 employees. Such firms provided to crainsdetroit.com/secondstage. business decision by a second-stage 35.7 percent of Michigan jobs in To sign up for the twice-monthly e- company. These companies are led 2007, more than any other company newsletter, go to crainsdetroit.com by growth-focused entrepreneurs with category. Crain’s is focusing on /getemail. The Second Stage print 1,000 BONUS Points, market-ready products or services. these poised-for-growth companies section will appear in Crain’s on the Every Night. They generally have revenue of because of their enormous impact. third Monday of each month. That’s earning at Bonus Speed. MACHINETOOLS.COM Location: Virtual company with nication with each other and or- Expert opinion: Gil Gordon, pres- staff in West Bloomfield, Grand ganization, we’d lose the consis- ident of Monmouth Junction, Rapids, Chicago, Topeka, Kan., tency of our customer service,” he N.J., Gil Gordon Associates and a and as far away as Mexico, Ar- said. telecommunications consultant, gentina, China and India. Solution: Car- said the most important aspect to Description: MachineTools.com is lin hired a pro- consider with a virtual company a Web site designed for the buying, grammer to de- is the concept of a shared culture. selling and trading of machinery. sign a content “You have to create that social Users can post want ads, view up- management glue that’s necessary to keep em- coming auctions, read industry system that ployees attached when they are news and share advice. In addition gives employ- all over the globe,” he said. “A to English, the site is also available ees access to op- telecommuter that’s never been in four languages — English, Span- erational infor- into an office is essentially a con- ish, German and Chinese — with mation, such as tractor. The company is just a Register at CandlewoodSuites.com/1000bonus more on the way. The company customer data, name and a paycheck and not Carlin and book at 1-877-512-8796. also plans to expand to several oth- from one hub. much else.” er regions — Brazil, France, Italy, The company also uses online Gordon recommends flying all Russia and Japan — this year. project management software employees to a central location at CEO: Stuart Carlin. Basecamp to manage day-to-day least twice a year. Whether the Founded: 1999. documentation, such as business time is spent bowling or on com- Employees: 20. reports, time cards and contracts. pany training, it doesn’t matter as Revenue: $2.75 million in 2009, Skype handles the company’s long as bonds are made, he said. projected $3.5 million in 2010. phone and video conference “It’s important to remind em- Problem to be solved: Operating needs, and quarterly meetings ployees who they work for and as a virtual company meant that and training sessions are done why they are working so hard,” face-to-face contact with the com- through videoconferencing ser- he said. “Companies that do well pany’s 20 employees would be vice GoToMeeting.com. have some sort of built-in booster nearly impossible. Stuart Carlin, The entire MachineTools.com shot like this.” the company’s CEO and founder, team meets once a year in one of Also, make sure to remember Must be a Priority Club® Rewards member and must register member number in advance to participate in this promotion. needed to ensure customer needs its telecommuters’ home city. the “social” in social media is be- To register or to obtain a list of participating airlines, complete offer details and Priority Club Rewards Membership Terms and Conditions, visit www.CandlewoodSuites.com/1000bonus or call 1-877-512-8796. could be met regardless of where Last year the group came to Car- ing used. Encourage employees to © 2010 InterContinental Hotels Group. All rights reserved. Most hotels are independently owned and/or operated. employees were stationed. Work- lin’s home in West Bloomfield, keep each other updated on their ing virtually also poses a problem where they held a meeting and at- personal lives as well. with training, consistency and ac- tended a Detroit Tigers game. “The same technology you’re countability, Carlin said. “The host employee chooses using to do work is also great for Considerations: Maintaining what we all do,” he said. “It’s creating your community and good customer service is critical. great for us all to get together and company culture,” he said. “I worry that if we lose commu- get to know each other.” — Dustin Walsh

If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entre- preneurship editor at Crain’s Detroit Business, at [email protected].

Linkner sees 3-D, games in ePrize’s future BY BILL SHEA much time to that side of the busi- tied to a promotion. CRAIN’S DETROIT BUSINESS ness (as CEO).” EPrize also will expand its use of A search firm was hired to find a metrics and analytics for its Josh Linkner is a jazz musician replacement, and Matt Wise, CEO clients and their promotion cam- in his off hours, and he sees his of Chicago-based online marketing paigns, he said. new role as ePrize L.L.C.’s chief idea services firm Q Interactive L.L.C., Linkner declined to discuss rev- guy as a natural progression of was hired. As CEO, he will handle enue specifics but said revenue that. day-to-day operations of the com- was down in 2009 after a decade of “Leadership pany, which is headquartered in a growth. The company, which has is improvising, 46,000-square-foot former brewery about 250 employees and offices in like jazz, creat- east of Woodward near I-696. Atlanta, Chicago, Dallas, Los An- ing,” he said. Since its inception, ePrize has geles and New York, had revenue “That’s who I launched more than 6,000 interac- of $40 million in 2008. am at my core. tive promotion and loyalty cam- “Most marketing companies Your role be- paigns for such companies as Gen- took a little bit of a hit,” he said, comes more like eral Motors Co., The Coca-Cola Co., adding that ePrize forecasts rev- a symphony Yahoo, Procter & Gamble Co., The enue growth for 2010. conductor, or- Walt Disney Co. and AT&T. Linkner noted that his decision chestrating.” Linkner EPrize deploys 30 to 50 new pro- to step back is not unprecedented, Linkner, 39, announced on Feb. grams each month. Linkner thinks noting that founders of eBay, 8 that he was stepping down as the company can do more and dif- Google, Yahoo and Microsoft Corp. all CEO of the Pleasant Ridge-based ferent stuff. stepped away from day-to-day con- online promotions and sweep- “I decided to make a change in trol. stakes company he founded in 1999 my focus. I love the innovation side, “That model has been a proven to focus on new ideas, strategies coming up with new ideas,” he said. one,” he said. and business relationships. He re- Some of the areas Linkner will The change is also a time for re- mains chairman of the board. steer the company into include so- flection. “This is completely my deci- cial media, 3-D virtual worlds, “It is a little weird, for sure, and sion,” he said. “I’m going to be fo- games, mobile marketing and something I considered deeply,” cused on innovation, and cutting what he calls “engagement mar- Linkner said. edge products and services for the keting,” in which campaigns en- Bill Shea: (313) 446-1626, future. I wasn’t able to devote as gage consumers but may not be [email protected] DBpageAD.qxd 11/2/2009 3:12 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS March 1, 2010 OPINION OTHER VOICES Transit authority’s Diverse boards good for biz Actions taken by federal Goldman Sachs that found nies with more diverse boards, in regulators can have a big closing the gap between particular those with a higher pro- impact on how America male and female employ- portion of women directors, per- does business. That could ment rates could boost U.S. form better as measured by key fi- be the case with U.S. Secu- GDP by as much as 9 per- nancial metrics including return arrival overdue rities and Exchange Com- cent, European zone GDP on equity, return on sales and re- mission regulations that by 13 percent and Japanese turn on invested capital,” ION outheast Michigan has tried for a truly regional public took effect yesterday. GDP by 16 percent. president Rona Wells wrote. transit system 23 times in recent decades. State law- The new disclosure In September 2008, a re- Yet, data compiled by Eastern S makers are poised to decide whether 24 is a charm. rules, adopted by the SEC port published by McKin- Michigan University for Inforum’s A three-bill package under review by the House Intergov- last December, require Terry Barclay sey & Co. provided solid research arm, Inforum Center for public companies to make evidence that the gender Leadership, last year showed that ernmental and Regional Affairs Committee would create a new disclosures to shareholders gap at U.S. companies is much women on the boards of Michigan new Southeast Michigan regional transit authority that could about many things. Most notably more than just an image or public- public companies do not come apply for and manage federal transit dollars. from Inforum’s perspective, com- relations problem. McKinsey re- close to matching the percentage The authority would execute a long-term regional transit panies now will be required to pro- searchers wrote that gender diver- of women in the workforce. Simi- plan that calls for a mix of light rail and rapid bus transit to vide information about the role di- sity “can have real implications lar studies in other parts of the versity plays in considering and for company performance.” For country show the same trend. improved feeder-line service. A five-member board, with ap- selecting board candidates. We that reason, McKinsey found, lead- It’s past time for corporate lead- pointees from the governor, Detroit, and Wayne, Oakland and think that is a good thing. ing companies such as J.P. Mor- ers to recognize that women — Macomb counties, would operate on a straight majority — vs. Why should shareholders care gan Chase have taken proactive who represent the majority of unanimous — vote structure. about that? There is growing evi- steps to move more women to the their customers and about half of But so far, Detroit isn’t on board. In a formal statement, De- dence that diversity in corporate top of their organizations. the U.S. employed workforce — troit’s CFO Norm White told Crain’s last week: “The mayor leadership measurably impacts In a comment letter to the SEC should have a much stronger pres- long-term profitability, especially about the new rules, the InterOrga- ence on corporate boards. If the categorically agrees there should be a regional transit system. when putting women into deci- nization Network — a national net- SEC’s new rules help nudge corpo- However, these bills fall short of that goal.” sion-making positions. work of the 14 largest professional rate America toward that goal, Specifically, through a spokesman, the city objects that the In its recent “Groundbreakers” women’s organizations, of which then corporations and their share- legislation does not maintain the 65/35 percent funding formu- report, accounting and consulting Inforum is part — cited a “growing holders will almost certainly be la that favors Detroit’s bus system over the suburban system firm Ernst & Young brought togeth- body of research (that) places board better off because of it. er research that makes the case for diversity squarely within the realm Terry Barclay is president and when it comes to distributing state dollars within the region. more women business leaders. For of solid business strategy. CEO of Inforum and Inforum Cen- The legislation, in fact, has no funding formula because that instance, the report cites data from “Studies now show that compa- ter for Leadership. would be one purpose of the authority. Detroit’s concerns are understandable; the mayor is under fire for cutting bus service now and the city wants to ensure its funding levels for its not-very-good service aren’t decimated. Yet a regional authority could relieve much of Detroit’s fi- KEITH CRAIN LETTERS nancial burdens if suburban SMART buses took over mainline thoroughfare service, allowing Detroit to improve its feeder- line service. That’s a key reason to have an authority: to deter- Correcting mine how best to use all of the transit assets within the region. They’re still coming What would help relieve Detroit’s anxieties and make this authority reality is to include in legislation a solid proposal confusion for expanded transit funding. Whether that’s a penny gas tax to downtown events or even fees collected on driver’s licenses in the region is up to One of the largest town and enjoyed the on stem cells the Legislature. weekend shows in our opportunities that our Southeast Michigan needs a single, regional voice for tran- Editor: city ended last night at city has presented. I would like to correct a sit as it seeks increasingly competitive federal transit dollars. Cobo Center. Let’s not kid our- statement made by Larry Backers of the authority hope to get the regional authority cre- The Michigan Hot selves, Cobo Center still Giroux in a Feb. 22 letter. He ated before Congress votes on a reauthorization bill for federal Rod Association, along needs a great deal of stated that “there is no excuse transit funding. with longtime promoter work. Just because they to use an aborted embryo for Bob Larivee, once again put a couple of Band- (stem cell) research to build up We hope someone is thinking of the actual residents and held Autorama at Cobo. Aids on it for the North riders of transit as they determine whether this region will re- false hopes.” And once again, there American International Embryonic stem cells are not will have been tens of Auto Show in January main the only major metro area without a comprehensive re- aborted. They are derived from thousands of people who doesn’t mean that it gional transit system. eggs that have been fertilized braved the weather to still isn’t in dire need of Whatever the obstacles, this is a time for people to act like outside of the body. come downtown to enjoy an annual lots more investment to make it They were to be used for in- leaders and let go of whatever past frictions exist. A regional car show in the middle of winter. competitive with other cities. vitro fertilization in women transit authority is long overdue. Let’s get this done. Just in case you think this is a We don’t need nor could we af- who could not get pregnant by Editor’s note: Crain’s Publisher Mary Kramer spoke in favor Detroit-only event, the Larivees ford a multimillion-square-foot ex- natural means. hold more than 100 car shows all hibition hall like Las Vegas or Or- of the bills at a hearing last week in her capacity as co-chair of a The fertilized egg is frozen at transit committee created by the Metropolitan Affairs Coalition over the country. Detroit happens lando. But we do need to upgrade to host the granddaddy of them all. our facility with a large infusion of five days of age, in what is and the Southeast Michigan Council of Governments. But like everything else in this capital to make it more efficient for called the blastocyst stage, and world, content is king. People tell exhibitors to set up and to attract kept this way until it can be im- me all the time that no one’s going even larger audiences to our events. planted into a woman. Wrong time for automatic raise to head downtown in Detroit. Autorama is a perfect example The blastocyst at this point They’re wrong. of a great show that has attracted is no bigger than the dot at the Not all of the state’s budget problems are easily solved, but Whether it’s health care at the thousands of people to Cobo every end of this sentence. there’s at least one quick action the Legislature can take to help. Detroit Medical Center or Henry year for more than 50 years. But The eggs that will not be An automatic pay raise of 3 percent is scheduled to kick in Ford Hospital, sporting events at that show, like all the shows that used for future implantation for unionized state employees on Oct. 1 if not rejected by a two- our three stadiums or simply din- present at Cobo, deserve a first- will either be destroyed, or thirds vote of each house of the Legislature by April 12. ing in one of our many restau- rate facility with high quality and they can be donated for re- search purposes with the in- Rejecting the raise seems like a no-brainer. The Michigan rants, if the event has some great reasonable labor rates. appeal, folks will come. Recently, the contractor who formed consent of the donors. Civil Service Commission already has rescinded the same in- I think our downtown gets a bad had the electrical contract for Adult stem cells are derived crease for nonunion workers. And employees of cash-strapped rap all too often. Not enough peo- Cobo pleaded guilty to paying hun- from tissue in living cells. employers throughout the state have had their wages frozen or ple stop to realize that millions of dreds of thousands in bribes to get They have the potential for cut. The state is in the same position, and the Legislature people come downtown for all the contract since it was so lucra- cell-based regenerative thera- needs to make the same kind of hard decision. sorts of exciting events and loca- tive. That has got to stop. pies, but they are limited to dif- tions. Just think of all the visitors People are coming downtown ferentiating into cell types of This should not be a partisan issue. It’s a budget issue. The to our museums every year. for exciting events. Let’s make their tissue of origin. state can’t afford the increases and needs to act accordingly, just I may have a jaded point of view sure that the facilities are first- as thousands of private employers in Michigan already have. since I’ve always worked down- rate as well. See Letters, Page 7 20100301-NEWS--0007-NAT-CCI-CD_-- 2/26/2010 5:54 PM Page 1

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Contest promotes value of internships

I was a college intern. tern program, which is two things bear repeat- MEDC President and CEO Greg urged. (That sounds like a title for a funded by federal work- ing here. Main said a similar program in Not only would the company Grade B movie — or maybe an ex- force and foundation First, Gov. which he was involved in Okla- benefit, but the company’s ability pose of the Clinton White House.) dollars. Granholm has pro- homa increased angel investment to reach out to banks or special- But like many in journalism, in- posed altering the in- nearly tenfold in a couple of years. ized financing opportunities ternships were critical to landing come tax credit that’s Surely this is an idea that de- would improve enormously. a job in my chosen field more than Help for second-stage available to angel in- serves support. You can find more on our cover- 35 years ago. companies vestors. The state cur- The second point made by sever- age of the financing ideas at That’s one reason I’m passion- rently offers a 50 per- al panelists was the need for grow- www.crainsdetroit.com ate about InternInMichigan.com, a Last week, Crain’s cent credit when the ing companies, $1 million a year in /secondstage. project that links employers with held its first event for investment matures; revenue or more, for capable fi- potential interns from around the second-stage compa- Granholm proposes nancial talent. Mary Kramer is publisher of state. nies. “Where’s the Mon- changing it to a 25 per- If entrepreneurs made a single Crain’s Detroit Business. Catch her More than 9,000 students have ey” was a forum on fi- cent credit up front. If investment this year, it could be to take on business news at 6:10 a.m. enrolled, but more employers are nancing for entrepreneurial such a credit were created, it could upgrade the management talent in Mondays on the Paul W. Smith show needed to make the match. companies. easily boost the amount of private their companies with an expertise on WJR AM 760 and in her blog at Internships are a great “try-be- Attendees learned a lot about po- capital available to companies that in finance. www.crainsdetroit.com/kramer. fore-you-buy” opportunity for em- tential sources of financing, but want to grow. “Get a good CFO,” our panelists E-mail her at [email protected]. ployers as well as a chance for col- lege-age talent to test their wings. The Detroit Regional Chamber’s Greg Handel calls it a “test drive” for employers. Now, Crain’s and the chamber are looking for nominees of both outstanding interns (see the de- tails on Page 8 and at crainsde- troit.com/nominate) and employ- ers who offer best-practice-worthy internships other employers can learn from. We’re looking for an Intern of the Year and an Employer of the Year in both for-profit and non- profit categories. The deadline for entry is April 9. The winners in both categories will be recognized at the cham- ber’s Mackinac Policy Confer- ence in June. And the winning in- tern will receive an iPad from Crain’s. The contest is open to any intern or employer in Southeast Michi- gan — not just those who were matched by the InternInMichi- gan.com Web site. Full disclosure: I serve on an ad- visory panel for the chamber’s in-

LETTERS CONTINUED ■ From Page 6

But embryonic stem cells have the capability of becoming all cell types in the human body. This could make it possible to treat or cure cancers, a vast num- ber of neurological diseases, spinal injuries and many other disorders. If this were you or a family member, wouldn’t you want to be offered the hope that there is a pos- sibility to relieve pain and suffer- ing from an incurable disease or SERVING MICHIGAN injury? Abe Slaim, D.O. Bloomfield Hills

Crain’s Detroit Business welcomes letters to the editor. All letters will be considered for publication, provided they are signed and do not defame individuals or organizations. Letters may be edited for length and clarity. Write: Editor, Crain’s Detroit A better partnership. | wnj.com Business, 1155 Gratiot Ave., SOUTHFIELD | STERLING HEIGHTS | GRAND RAPIDS | HOLLAND | LANSING | MUSKEGON Detroit, MI 48207-2997. E-mail: [email protected] 20100301-NEWS--0008-NAT-CCI-CD_-- 2/26/2010 5:19 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS March 1, 2010 When diversifying, look to specialize; start in own field

BY NANCY KAFFER State University’s depart- times are not doing well, you con- CRAIN’S DETROIT BUSINESS ment of professional and centrate on repairing old cars. So Small Biz executive development, no matter what happens, you have Irene Grabowski of Solutions but there’s a fine line to the market covered one way or the Dearborn-based Business walk. other. A person selling new shoes System Solutions L.L.C. Some businesses may is in a world of trouble when the worked as a contractor be missing moneymak- economy goes down the tubes, be- to the Detroit 3 for years, ing opportunities be- cause people are going to go out focusing on her special- cause of overspecializa- and have their old shoes resoled. ty, internal audit train- tion, while others may They should get involved in re- ing. be casting too wide a net. pairing shoes.” In 2007, jobs started to “I often tell my stu- That doesn’t mean retail store Nancy Kaffer dry up. dents they’re too generic owners need to learn how to fix a “Every year, you’re and that they should spe- roof, or that lawyers should learn taking a pay cut,” she said. cialize,” he said. “The more you how to snake a drain. So in 2008, Grabowski went back specialize, the more you appear to For an accountant, King said, to school, learning standard audit- be an expert, and the more you ap- that strategy might mean taking ing procedures for a range of pear to be an expert, the more you forensic accounting contracts with fields: medical, aerospace and en- can charge.” a bankruptcy court when business vironmental, and started dabbling But there’s a caveat. in military and defense protocols. is slow. “In terms of niche businesses, A business owner whose base is In 2009, she quit consulting and the niche has to be growing or ex- too broad should find a growth sec- launched her own business. panding,” he said. “If a niche is, tor within the industry. Expanding her knowledge out- like, selling typewriters, right now For the average janitorial ser- side automotive opened profes- you’re in suck city.” vice, it’s a tough field, King said. sional doors, she said, giving her Small-business owners who Mission Night Light! “Everyone with a mop and a the opportunity to get a lot more want to diversify should begin, he work. said, by looking at opportunities to bucket is your competition,” he Now, Grabowski still does inter- diversify within their current said. “I have one student … all she What are the nal audit training but also offers a fields. does is clean up at crime scenes. broader range of services to sever- “Not only should you diversify Another one, all he does is use a business issues that al industries. but diversify within your own in- special machine that cleans “Now I implement entire busi- dustry — look at something coun- garbage chutes in high-rises.” keep you up at night? ness systems for companies or fix tercyclical,” he said, like a compo- Another student cleans only gas what they have to work on their re- nent of the industry that’s still in station bathrooms. strained budgets,” she said. demand in an economic downturn. “You’re staying in the same Our attorneys are on a mission to shed In 2008, she made about $28,000. “There’s a very easy answer to business,” he said. “You’re not light on those issues and help identify In 2009, Grabowski grossed all this: People should not only sell opening a pizza restaurant in insightful legal solutions that work for $150,000. new stuff but also repair stuff,” Shreveport, La., but you’re focus- Diversification can be a smart King said. ing on a specific aspect of the busi- you and your business. move for businesses large and “The easiest example is the car ness.” small, said Ed King, director of business. You sell new cars when Nancy Kaffer: (313) 446-0412, As your legal counselor and business small-business services in Wayne times are doing well, and when [email protected] advocate, we are committed to illuminating the most pressing challenges in this difficult economy. Nominations sought for top interns, employers Attorneys on a Mission® Your mission is our mission. BY MICHELLE DARWISH leave to find opportunity. CRAIN’S DETROIT BUSINESS HOW TO NOMINATE Handel suspects that it’s just not We never lose sight of it. easy for employers and interns to To nominate an Intern or Employer What’s the best way to promote connect. the benefits of internships? of the Year, go to crainsdetroit.com/nominate. The By logging into InternInMichi- Recognize the region’s top in- deadline is April 9. Internships gan.com and creating profiles, stu- tern and those employers that pro- must have occurred between dents can search and apply for in- vide the best opportunities. January 2009 and May 2010. If ternships. Employers can create A business advisory and advocacy law firm Today Crain’s Detroit Business, you have questions about the organizational profiles, post in- working with the Detroit Regional process, contact Michelle Darwish ternships and recruit college grad- Carl J. Grassi, President Chamber’s InternInMichigan.com, at (313) 446-1621 or [email protected] uates. 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 will kick off its Intern and Employ- Since the site’s launch, more er of the Year contest. 248.646.5070 than 10,600 Michigan college and Crain’s, which has a long tradi- have defined programs that offer university students and 890 em- tion of recognizing local talent and Stephen M. Gross, Detroit Managing Member interns genuine opportunities to ployers have registered. Those em- employers through such recogni- learn and grow. ployers have posted about 530 in- tion programs as “20 in their 20s,” Chicago • Cleveland • Columbus • Detroit • West Palm Beach Nominees need not have worked ternships — 147 of which are now “40 under 40” and “Cool Places to through InternInMichigan.com. open. The chamber estimates that www.mcdonaldhopkins.com Work,” will select one model in- Launched in April 2009, the site about 67 percent of those posted tern and a for-profit and nonprofit connects students graduating from are filled by registered interns, employer as winners. Michigan colleges and universi- All three will receive a paid trip though it’s hard to be certain be- ties with internships at Michigan to the chamber’s 2010 Mackinac cause employers aren’t required to companies. It was developed Policy Conference, June 2-5, cour- report results. tesy of InternInMichigan.com, and among the Detroit chamber and Even the chamber has bumped be recognized in Crain’s and the the West Michigan Strategic Alliance, up its number of interns in the The Detroiter, the chamber’s mem- along with Michigan’s higher edu- past year, from an annual average ber publication. cation community. of five to as many as 10 — and The Intern of the Year will also The intent is to keep young talent they’re not just doing busy work, receive an Apple iPad, courtesy of in the state by helping line up in- Handel said. Crain’s. ternships that could turn into jobs. “This is your chance to test dri- Not every internship ends in a Surprisingly, employers still ve potential employees,” he said. job offer, but the selected intern say it’s hard to find good talent, “We need to look at internships as would have treated the experience said Greg Handel, senior director an important part of development, as a real audition, not just as satis- of workforce development for the not a laborious exercise.” fying a credit requirement. chamber. At the same time, young Michelle Darwish: (313) 446-1621; Selected employers likely will professionals feel they need to [email protected] DBpageAD.qxd 2/23/2010 3:03 PM Page 1 DBpageAD.qxd 2/18/2010 12:38 PM Page 1

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March 1, 2010 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Chad Halcom covers law, manufacturing and defense. Call (313) 446-6796 or write chalcom @crain.com. Law

Chad Halcom Detroit firms Top verdicts and settlements of 2009 he big cases of 2009 for News America Marketing and And a 13-year-old case involving This selection of large verdicts, likely to climb metro Detroit attorneys and Livonia-based Valassis Inc. abuses of women inmates at settlements and ongoing litigation Bloodletting in the nation’s T judges ranged from liability Also last year, auto suppliers Michigan prisons reached its is the result of law reporter Chad financial centers means Detroit’s top and contract disputes to bellwether battled with Chrysler L.L.C., and conclusion: a $100 million Halcom’s efforts combing through law firms will likely climb up The fraud claims. Ford Motor Co. and investors settlement. lawsuits and submissions from law American Lawyer list of 200 largest The largest case by dollar value fought for damages based on In environmental case highlights, firms and case parties. Profiles law firms, either by doing well or doing was the $500 million settlement financial deception at Ann Arbor- fumes from a Lenox Township begin on this page and continue less badly than their competition. between coupon company rivals based ProQuest. landfill had residents crying foul. through Page 16. Dykema Gossett P.L.L.C. reports 2009 revenue of $175.8 million, up from $169.8 million in 2008. Lawyer headcount increased from 332 to 351, and profits per equity partner Valassis Communications Inc. v. News America Inc. et al climbed 9 percent. CEO Rex Schlaybaugh said energy, bankruptcy and restructuring, intellectual property and practices representing pharmaceutical companies helped drive growth. Valassis victory But he acknowledged the firm, which now has its largest office in Chicago at more than 110 attorneys, fared better elsewhere than in Coupon giant clips rival News America over competitive practices Southeast Michigan. “Texas and Illinois were relatively Beyond the jaw-dropping sums of any future violations alleged by ei- & Hartson L.L.P. in Los Angeles and Ⅲ Venue: Wayne County stronger areas, (but) had assets for money, the competitive practices ther company and to make advisory lead counsel for News America in Circuit Court, Judge our clients like IP and litigation dispute between Livonia-based recommendations to the court. the case, declined to comment. Michael Sapala; U.S. practices that were strong everywhere Valassis Communications Inc. and The panel would consist of a The settlement came just before a District Court, Detroit, and spread throughout the firm.” New York-based rival News America Valassis nominee, a News America second trial was set to begin in Judge Arthur Tarnow; Dickinson Wright P.L.L.C. saw Marketing Inc., a unit of News Corp., nominee and a third member to be Tarnow’s court last month. Valas- Los Angeles County revenue climb from $100.5 million to could lead to new rules of play with- appointed by the sis, which was seeking $1 billion in Superior Court, Judge $105.8 million. The 260-lawyer firm Anthony Mohr in the coupon industry. court at the oth- damages, won the jury verdict in Ⅲ made the Am Law 200 for the first The Valassis case generated both ers’ suggestion. July for $300 million before Wayne Case filed: January time last year at No. 198, and should 2006; later split into the largest verdict of 2009 ($300 mil- “The hope is County Circuit Judge Michael three courts climb in the 2010 list since some lion against News America on July that there will be Sapala for unfair competition and larger firms lost revenue or merged. Ⅲ Verdict: $300 million, 24) and the largest settlement of a quick and effec- tortious interference with business July 23, 2009 Both revenue and profits grew in 2010 to date ($500 million, an- tive response to practices. Tortious interference is 2009, CEO Bill Burgess said. The firm Ⅲ Settlement: $500 nounced Jan. 30). address any issue intentional conduct, usually in vio- million, Jan. 30, 2010 acquired a Nashville office by merger But Crain’s will count both to- of tying and lation of civil law, that disrupts a with Stuart Estes & Donnell, and a Ⅲ Plaintiff: Valassis gether here, since the case dominat- bundling or an- company’s contractual relation- small Phoenix office through hires. Communications Inc. ed 2009 headlines and could bring a titrust violations ships or business practices. Miller, Canfield, Paddock and Stone Curtner Ⅲ Lead counsel: new level of scrutiny to both compa- like those re- Valassis alleged that News Ameri- Gregory Curtner, P.L.C. reported revenue declined to nies’ practices. solved in this case, if they should ca coerced client companies to par- $143 million in 2009, compared with partner, Miller, Canfield, Attorneys for both companies come up again,” said Gregory Curt- ticipate in its freestanding insert, or $146 million in 2008. Profits, and Paddock and Stone held a status conference at U.S. Dis- ner, principal at Miller, Canfield, Pad- FSI, newspaper products in markets profits per partner, were nearly flat, P.L.C., Ann Arbor. Co- counsel: said CEO Michael Hartmann. trict Court in Detroit in mid-Febru- dock and Stone P.L.C. and lead coun- where Valassis tends to dominate. Anthony ary on a proposed order that will sel for Valassis. News America customers who Rusciano, Plunkett Hartmann said the firm fared well in create a three-member expert an- Richard Stone, partner at Hogan did not oblige or take FSI business Cooney P.C., Bloomfield bankruptcy and commercial titrust panel to review the com- away from Valassis allegedly Hills; and David foreclosures, but lost automotive panies’ future competitive could face “penalty pricing” Mendelson, president of litigation amid the reorganizations of the Law Offices of David Chrysler and General Motors. practices as needed. or even exclusion from in- Mendelson P.C., Valassis and News America store advertising, according Hartmann and CEO Philip Kessler of Birmingham also will enter into a 10-year to Valassis. Butzel Long P.C. said it’s possible Ⅲ Defendants: News they fared well by comparison, since deal to use Valassis’ shared News America had made America, subsidiaries many large law firms saw revenue mail services — another con- similar allegations of anticom- News America declines. The legal services sector dition of the settlement. petitive practices Marketing In-Store lost 45,000 jobs in 2009, according The companies against Valassis. Services Inc., News to the Bureau of Labor Statistics. had yet to agree The Wayne Coun- America FSI Inc. Kessler said Butzel lost more on the language ty verdict was un- Ⅲ Lead counsel: Richard Stone, partner, attorneys than it gained last year and of a court order der appeal, but the for Judge Arthur settlement resolved Hogan & Hartson L.L.P., numbered around 220 by January. He Los Angeles. Co- said 2009 was “marked with Tarnow to sign to both the federal and create the panel. state court matters, counsel: David Ettinger challenges” but “if revenue is down, it and Herschel Fink, did not drop dramatically.” But the compa- along with a sepa- partners, Honigman Honigman Miller Schwartz and Cohn nies propose to rate civil case at Los Miller Schwartz and Cohn L.L.P. also saw 2009 revenue and split the costs for Angeles County Supe- L.L.P., Detroit profits per partner improve over 2008, three antitrust ex- ISTOCKPHOTO.COM rior Court. CEO David Foltyn said in an e-mail. perts to examine — Chad Halcom American Lawyer placed firm revenue at $145 million in 2008, but Foltyn has said the firm does not disclose financial data. Wings’ Fedorov Parties clear air M-5 land case settled Johnson Controls Eminem Foltyn said IP, commercial law, bankruptcy and reorganization were scores judgment in landfill odor case for $18.7M recovers surcharges downloads strong, as real estate continued to struggle. The firm grew its IP practice Inmates await ProQuest settles Award hits cap in Developer wins $2.2M costly for through hires and tallied more than

IGHLIGHTS Apple $15 million in legal fees from GM harassment award over false reports missed-cancer case over blocked drain alone during its Chapter 11. H 12 13 14 15 16 20100301-NEWS--0012-NAT-CCI-CD_-- 2/26/2010 11:26 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS March 1, 2010 Focus: Law

Sergei Fedorov v. Joseph Zada, Venue: Wayne County Circuit Court, Judge Kathleen McDonald Tracy Neal et al v. Michigan Department of Corrections Zada Enterprises L.L.C. et al Case filed: July 23, 2009 Default judgment: $60.1 million, Aug. 28, 2009 Inmate abuse Plaintiff: Sergei Fedorov, former Detroit Red Wings center Investment fraud Lead counsel: Peter Alter, litigation group, Jaffe, Raitt, Heuer & Weiss As many as 900 women could Venue: Washtenaw County P.C., Southfield have to wait until October 2014 for Circuit Court, Judge Timothy Former Detroit Red Wings center Defendants: Zada Enterprises L.L.C., Grosse Pointe Shores, and the full payout on a combined Connors Sergei Fedorov won a quick de- president Joseph Zada; Xandarius L.L.C. of Wellington, Fla.; and $100 million settlement to a class- Case filed: 1996, 2003 fault judgment against former fi- Xandarius L.L.C. of Grosse Pointe Shores action lawsuit alleging a pattern of Settlement: $100 million, July nancial adviser Joseph Zada and Lead counsel: Benjamin Aloia, president, Aloia & Associates P.C., Mt. sexual abuse to female inmates at 15, 2009 his company Clemens Michigan prisons. Plaintiffs: Tracy Neal, Nicole for $60.1 mil- The lawsuit involved inmates Anderson and more than a dozen lion, but collec- him and trick him into believing other matters at Southfield-based mostly at the now-closed Robert other named plaintiffs, on behalf of tion could take that the entrusted assets were in- Jaffe, Raitt, Heuer & Weiss P.C., said Scott Correctional Facility in Ply- a class of inmates who were a while. vested and earning a return — Zada has other investors seeking mouth, but also at the also-closed victims of sexual assault, neither of which were true,” the to collect on his assets. Fedorov, 40, Western Wayne Correction Facili- harassment or privacy rights lawsuit states. Bloomfield Hills-based O’Keefe playing most re- ty in Plymouth Township and oth- violations by prison staff between cently with the Wayne County Circuit Judge & Associates Consulting L.L.C. is March 1993 and July 2009 er corrections facilities in Oak- Washington Capi- Kathleen McDonald entered a court-appointed receiver of land and Branch counties. Lead counsel: Deborah LaBelle, tals and for judgment of more than $60.1 mil- Zada’s assets, charged with locat- solo practitioner, Ann Arbor, and The case continued for 13 years, team Russia at lion against Zada and his various ing, preserving and liquidating Richard Soble, partner, Soble Rowe on behalf of Alter the Olympic businesses in August after Zada them to satisfy investors. Krichbaum L.L.P., Ann Arbor women who al- Games in Vancouver, alleges in a and his attorney could not set “I am optimistic about our abil- Defendants: Michigan leged abuses by lawsuit that Zada of Grosse Pointe aside a past entry of default. Zada ity to make some recovery as as- Department of Corrections, former corrections staff Shores defrauded him out of in March agreed but failed to pay sets become available,” Alter MDOC Directors Kenneth McGinnis dating to early $43 million under the guise of in- Fedorov $60 million by late April, said. “But it is a process.” and William Overton, and more 1993. than 25 employees including vestment from 1998 to early 2009. according to the July lawsuit. The time limit for an appeal A state settle- prison wardens, administrators, “Zada actually paid out a mini- Peter Alter, lead counsel for Fe- has lapsed. ment in July guards and others mal ‘return’ to Fedorov to deceive dorov and his attorney in some — Chad Halcom covered two sets Lead counsel: John Thurber, of plaintiffs who assistant state attorney general won verdicts at Soble separate trials marked to resolve sexual inter- in 2008 valued at more than $40 course claims, $11 million is for million with interest, plus all of claims of groping or inappropriate the plaintiffs whose cases had yet cross-gender pat-downs, and to go to trial. $5 million is to resolve claims of Under the terms of the settle- sexual harassment or inappropri- ment, 10 plaintiff attorneys who ate viewing of nude inmates. represented the women will di- The settlement and allocation vide around $28.6 million, and plan do not specify exactly how nearly $15.9 million is earmarked many inmates will be eligible to for the 18 women who won dam- participate. But Richard Soble, ages in the previous two trials. partner at Ann Arbor-based Soble One group of those women will re- Rowe Krichbaum L.L.P. and co-coun- ceive 67 percent of trial damages, sel in the case, has said he believes and the second group will receive up to 900 women had submitted 65 percent. claims as of last August. Another $37 million is ear- — Chad Halcom

Chrysler L.L.C. v. Hutchinson F.T.S. Michigan State University Auto supplier contract A jury at Oakland County Cir- Venue: Oakland County Circuit cuit Court returned the largest civ- Court, Judge Steven Andrews College of Law il award in county history to Case filed: January 2007 Chrysler L.L.C. last year for contract Verdict: $47.7 million, April 10, violations after the manufacturer 2009 was involved in a recall of its 2005 Plaintiff: Chrysler L.L.C. minivans due to leaks in lines for Lead counsel: James Feeney, THE MICHIGAN STATE UNIVERSITY COLLEGE OF LAW is a the rear heater and air condition- Dykema Gossett P.L.L.C., Detroit er. progressive law school with a proud reputation for excellence. Defendant: Hutchinson F.T.S., A verdict of $47.7 million was re- Troy An MSU legal education is increasingly recognized by employers Spring 2009 graduates who took turned against Hutchinson F.T.S., Lead counsel: Thomas Kilbane, throughout the nation and abroad. Our graduates benefit from a which had supplied the parts in Squire, Sanders & Dempsey L.L.P., the Michigan Bar examination for question. Cleveland well-developed clinical program, an array of dual-degree programs, Offset against a judgment in and a menu of electives that allow students to earn certificates and the first time in July celebrated a Hutchinson’s favor for develop areas of concentration. MSU Law graduates are known for $29 million for unpaid ac- being practice-ready attorneys and accomplished scholars. . passage rate of 95 percent (before counts, Chrysler will receive The jury nearly $20 million. “ The MSU Law faculty is composed of first-rate scholars who appeals), which was the highest Finding in Chrysler’s fa- enforced that offer an exciting learning environment and demonstrate a strong vor, Judge Steven Andrews contract that commitment to teaching. They strive to ensure that all students passage rate among law schools cited the reasonableness of Chrysler’s behavior. are provided with the tools to succeed in any legal environment. in Michigan, and well above the Attorney for the plaintiff the parties Our faculty hails from the ranks of established and accomplished James Feeney, member- attorneys, widely respected scholars, and the most promising state’s 88 percent average. shareholder of Dykema Gos- had made. newly credentialed faculty candidates. sett P.L.L.C., said that “our position Nothing could be was that Hutchinson and Chrysler We invite you to discover how the MSU College of Law’s had agreed in making the contract fairer in our system curriculum and facilities provide students with a rich and that they would share the financial rewarding legal education. consequences of any breach of of justice warranty of a Hutchinson-sup- ” plied part on an 80 percent-20 per- James Feeney, cent basis. The jury found a breach Dykema Gossett P.L.L.C. and awarded Chrysler exactly Visit law.msu.edu for more information. 80 percent of Chrysler’s total dam- that contract that the parties had ages, which was $47 million-plus. made. Nothing could be fairer in It was extremely gratifying to our system of justice.” Chrysler that the jury enforced — Brett Callwood 20100301-NEWS--0013-NAT-CCI-CD_-- 2/26/2010 11:29 AM Page 1

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 13 Focus: Law

EnGenius Inc. v. Ford Motor Co. ProQuest Co. securities ligitation Ⅲ Venue: U.S. District Court, Detroit, Judge Avern Cohn Ⅲ Case filed: February 2006 Breach of contract Earnings dispute Ⅲ Settlement: $20 million, March 19, 2009 Ⅲ Plaintiffs: Industry City Associates Employee Pension Plan Trust Money An award of $22.6 million was Ⅲ Venue: Wayne County Circuit The former ProQuest Co. and its Purchase, Sales Marketing Group MPP, several individual investors made against Ford Motor Co. over a past management in March set- Court, Detroit, Judge Michael Ⅲ Lead counsel: E. Powell Miller and David Fink, partners, The Miller Law Firm breached contract with Livonia- Sapala tled a proposed class-action case P.C., Rochester; Joel Strauss of Kaplan Fox & Kilsheimer L.L.P., New York; based EnGenius Inc., Ford’s long- Ⅲ Case filed: Sept. 5, 2003 on behalf of institutional and in- and Marc Topaz of Schiffrin, Barroway Topaz & Kessler L.L.P., Radnor, Pa. time software engineering suppli- Ⅲ Judgment: $22.6 million, Jan. 9, dividual investors who claimed Ⅲ Defendants: ProQuest Co.; CEOs James Roemer and Alan Aldworth; er. 2009 losses after the company dis- CFO Kevin Gregory; and Scott Hirth, vice president of finance at the EnGenius was part of a team in Ⅲ Plaintiff: EnGenius Inc. closed it had misreported its company’s ProQuest Information and Learning Co. subsidiary the late 1990s re- and EnGenius-EU Ltd. earnings for several years. Ⅲ Lead counsel: Laurie Silman and Michael Faris, partners, Latham & sponsible for Ⅲ Lead counsel: Jeffrey Brought as securities litigation Watkins L.L.P., Washington and Chicago, for ProQuest; George Donnini and maintaining Morganroth, Morganroth and in 2006, the lawsuit proposed to David DuMouchel, shareholders, Butzel Long P.C., Detroit, for Hirth Ford’s end-of- Morganroth P.L.L.C., Birmingham create a class of investors who line test system. Ⅲ Defendant: Ford Motor Co. bought stock between February from the New York Stock Exchange This system Ⅲ Lead counsel: Kathleen Lang, 2001 and December 2006 in Pro- and closed the sale of its informa- tests each vehi- Dickinson Wright P.L.L.C., Detroit Quest, which was later delisted tion and learning division for cle part individ- and dismantled as a company. $222 million to Maryland-based ually at the It is alleged that Ford then fell “It really stood to represent Cambridge Information Group. CIG plant before a behind with payments due to bud- thousands of investors,” said E. turned the unit into a privately vehicle is get issues, but when pushed to pay Powell Miller, president of The held subsidiary, ProQuest L.L.C. Morganroth shipped. attempted to put EnGenius out of Miller Law Firm P.C. in Rochester The original ProQuest, concen- Ford wanted to update its sys- business by canceling other con- and co-lead counsel for investors. trating mainly on K-12 education tem, and EnGenius won the bid to tracts. Shares of ProQuest (NYSE: materials, became Dallas-based design, build and maintain a new If EnGenius ceased to exist, Ford PQE) fell more than 40 percent in Miller Fink Voyager Learning Co. Voyager settled system. would own the rights to the testing value, from $29.41 in February the lawsuit for $20 million along An arbitration panel agreed on a system. 2006 to $15.20 in April 2006, after affecting earnings. with the past managers in March breach of contract judgment Ford was also found to be liable the company reported that an ac- The investors claimed false re- and is now a part of Cambium Learn- against Ford. for tortious interference. counting review had uncovered porting about earnings during the ing Group Inc. (Nasdaq: ABCD). The plaintiff claimed that Ford Attorney for the plaintiff Jeffrey that revenue was overstated and investment period, knowledge and ProQuest L.L.C., specializing repeatedly changed the launch Morganroth said EnGenius own- that royalty accounts payable had consent by company principals in electronic and microform in- priorities after a written agree- ers “were pleased with the award. been understated in prior years and violations of the federal Secu- formation products and services, ment had been completed, but They didn’t get every penny that for its ProQuest Information and rities Exchange Act of 1934. remains in Ann Arbor. that EnGenius continued to do they asked for … but it was a satis- Learning subsidiary, negatively In 2007 ProQuest was delisted — Chad Halcom what it could to make its customer factory award.” happy. — Brett Callwood

Hellebuyck et al v. Pine Tree Acres Inc., Waste Management Inc. Landfill odor

The price tag on an “intolerable Ⅲ Venue: Macomb County Circuit … sickening odor” was nearly Court, Judge Donald Miller $19 million for Houston-based Ⅲ Case filed: Aug. 18, 2009 Waste Management Inc. — but most Ⅲ Settlement: $18.76 million of that is dedicated to corrective according to plaintiffs, $3 million action at the Lenox Township- according to defendants; Dec. 14, based Pine Tree Acres Landfill. 2009 Thirteen plaintiffs, including Ⅲ Plaintiffs: Frank Hellebuyck, April Frank Hellebuyck, owner of New Heiler, Jeffrey and Marnie Ickes, Haven-based H&B Auto Electric Inc., Jack Domanski, Dennis Dorgosch, filed a proposed class-action law- Dreanna and Joseph Fileccia, Don suit in August on behalf of hun- and Shelly Vavro dreds of resi- Ⅲ Lead counsel: David Honigman, dents and partner, Mantese Honigman business own- Rossman and Williamson P.C., Troy ers with proper- Ⅲ Defendants: Pine Tree Acres ty near the land- Inc., Waste Management Inc., fill on 29 Mile Waste Management of Michigan Road. Ⅲ Lead counsel: Steven Berry, At issue was partner, Berry Johnston Sztykiel & an alleged re- Hunt P.C., Zeeland cent increase in “blowing debris, case evaluation before Macomb Honigman dust and odor” County Circuit Judge Donald from the 840-acre landfill. Miller when the parties reached Neighbors sued for nuisance, the settlement Dec. 14 for negligence and violations of the $18.76 million. The case was for- Michigan Environmental Protec- mally dismissed last month. tion Act. The settlement includes a “com- They claim land values suffered mitment to pursue in good faith” after processing equipment at an estimated $15 million in plant Pine Tree could no longer keep up improvements that will boost with gaseous emissions. Pine Tree Acres’ ability to con- “The waste disposal site’s nox- vert landfill gas into electrical ious emissions became really bad power. … about four or five years ago,” But Tom Horton, vice president said David Honigman, partner at of Midwest public affairs at Waste Troy-based Mantese Honigman Management, said that proposed Rossman & Williamson P.C. and lead expansion is subject to getting a attorney for the neighbors. power purchase agreement from a “(There was an) inability of the utility company for the enhanced existing plant and equipment to power output. process the growing volume of Exclusive of the waste-to-energy waste and the changing character plant expansion, Waste Manage- of the waste stream. As a result (of ment estimates its obligation in- the settlement), Waste Manage- cludes around $2.2 million in other ment agreed to dramatically in- plant improvements and $750,000 crease the capacity of the site to to the plaintiffs and their attor- process emissions.” neys. The lawsuit was proceeding to — Chad Halcom 20100301-NEWS--0014,0015-NAT-CCI-CD_-- 2/26/2010 11:24 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 1, 2010 Focus: Law

Michigan Dept. of Transportation v. Ⅲ Venue: Oakland County Circuit Haggerty Corridor Partners L.P. et al Court, Judge Rae Lee Chabot Ⅲ Case filed: December 1995 Ⅲ Settled: $18.7 million, January Grand Rapids Auburn Hills Condemnation case 2009 Ⅲ Plaintiff: Michigan Department Open House Open House The owners of land taken by con- of Transportation demnation for the M-5 Haggerty Ⅲ Lead counsel: Patrick Isom, THURSDAY, THURSDAY, extension project received MARCH 4 MARCH 11 assistant Michigan attorney general $18.7 million in January 2009 un- Ⅲ Defendants: Haggerty Corridor der a settlement to end 13 years of Partners L.P., President Neil Sosin, litigation with the Michigan Depart- trustee Paul Yeger

GRAND RAPIDS AUBURN HILLS ment of Transportation. Ⅲ Lead counsel: Alan Ackerman, Haggerty Corridor Partners L.P. lost managing partner, Ackerman LANSING ANN ARBOR 51 acres of a vacant 335-acre tract of Ackerman & Dynkowski P.C., land in West Bloomfield Township Bloomfield Hills for the Haggerty project but got the ࿞ rest of the land rezoned from resi- Hills-based Ackerman Ackerman & Lansing Ann Arbor dential to commercial use in 1998 Dynkowski P.C., based on the land’s Open House Open House and eventually highest and best use in 1995. built an office An Oakland County jury award- THURSDAY, THURSDAY, park. ed $14.9 million in damages, but the MARCH 18 MARCH 25 The landown- case went through lengthy appeals ers and MDOT on whether it was improper to in- clashed for years form the jury that the property was on which zoning rezoned after the dispute began. use should have The state Court of Appeals and determined the Michigan Supreme Court sided with value of the land. MDOT, remanding the case to Oak- MDOT in 1995 land County for a new trial. The Ackerman Come to a Cooley Open House in March. estimated the parties in December 2008 entered May, September, and January value around $2.7 million, including into a consent judgment to dismiss Cooley Law School starts classes in with your damages incurred to the remaining the case, pursuant to a settlement choice of four campuses across Michigan - in Lansing,Auburn Hills, Grand Rapids, land, and later lowered the value to for $18.7 million, which Ackerman and Ann Arbor. Find out more about Cooley’s excellent program at cooley.edu. $1.4 million. The landowners sought said was paid in January 2009. $18 million through Bloomfield Cooley Law School. Right time, right here, right for you. — Chad Halcom

Thomas M. Cooley Law School is committed to a fair and objective admissions policy. Subject to space limitations, Cooley offers the opportunity for legal education to all qualified applicants. Cooley abides by all federal and state laws against discrimination. In addition, Cooley abides by American Bar Association Standard 211(a), which provides that “a law school shall foster and maintain equality of opportunity in legal education, including employment of faculty and staff, without discrimination or segregation on the basis of race, color, religion, national origin, gender, sexual wledge. skills. ethics. skills. wledge. orientation, age or disability.” Herta Hopton, BCBS of Michigan v. Ⅲ Venue: Oakland County Circuit cooley.edu Court, Judge Steven Andrews

kno John Sivertson, Center for Oral and ICG.0110.002.AD Ⅲ Case filed: August 2007, January Facial Surgery, Warren Vallerand et al. 2008 (combined) Ⅲ Verdict: $15 million, $525,000 Dental malpractice paid; Aug. 27, 2009 Ⅲ Plaintiff: Herta Hopton, Blue Retired Michigan State Police Cross Blue Shield of Michigan Trooper Herta Hopton and Blue Ⅲ Lead counsel: Robert Gittleman, Cross Blue Shield of Michigan received manager, Robert Gittleman Law a $15 million verdict on paper in a Firm P.L.C., Orchard Lake pair of lawsuits alleging her dentist, Ⅲ Defendant: Center for Oral & periodontist and Facial Surgery, oral surgeon Dr. oral surgeon Warren Vallerand failed to diag- Ⅲ Lead counsel: Craig Nemier, communicate. nose cancer in partner, Nemier, Matthieu, Nash & her mouth de- Johnson, P.C., Farmington Hills collaborate. spite repeated visits. Oral & Facial Surgery in Novi and Because state oral surgeon Warren Vallerand — law caps non- the largest known dental malprac- economic dam- Event Information tice award in the country. Gittleman ages in medical But under a 1994 law, Hopton March 25, 2010 malpractice, a separate negotiation could not have received more than Detroit, MI during jury deliberations capped about $420,000 for non-economic Join AVI-SPL, the largest global integrator of AV systems and services, Sheraton Detroit Novi the payout at $525,000. damages. Her economic damages FREE for our AVI-SPL University event in Detroit! Hopton said two lesions were were slightly more than $400,000. At AVI-SPL University, you’ll: misdiagnosed before the cancer was Based on the verdict, Hopton Register Today! finally found. Hopton’s dentist set- and Blue Cross netted the maxi- Online s#ONNECTWITHTODAYSCUTTING EDGE!6MANUFACTURERSANDCERTIlEDPROFESSIONALS tled before the second jury trial in mum $500,000 from ProAssurance www.avispl.com/events s$ISCOVERTHELATESTINNOVATIONSFORVIDEOCONFERENCINGANDTELEPRESENCE August 2009, and the jury awarded Corp. as professional liability in- By Phone s!TTENDINFORMATIONALSEMINARSANDEARN!)!#%5S no damages against periodontist surer for Vallerand and the Center Toll free (877) 440-6205 John Sivertson and Brighton-based in Novi, plus the minimum $25,000 s2ECEIVECOMPLIMENTARYBREAKFASTANDLUNCH ANDFANTASTICDOORPRIZES Smith Sivertson & Zahn P.L.L.C. from OMS National Insurance Co. for For more information, visit www.avispl.com/events or call (877) 440-6205. Jurors awarded more than Smith Sivertson. $15 million against the Center for — Chad Halcom

Suzette Zeidan et al v. City of Roseville, Thomas Mulhern Police crash SDB600 Series NXD-435P The city of Roseville is not ap- bone fractures and other injuries Dual-Touch 4.3” Modero Portrait pealing a judgment of nearly to Suzette Zeidan, who now re- Interactive Whiteboard Wall/Flush Mount Touch Panel $6.1 million for injuries to a St. quires the aid of a walker. With the SDB600, two students can touch or Portrait configuration allows Modero Touch Panel Clair Shores passenger in a vehi- Mulhern claimed he was dis- write simultaneously to complete collaborative functionality in a vertical format. cle struck by a police officer in De- tracted by another vehicle when classroom exercises. cember 2007. he ran a red light and struck the Suzette Zeidan, 83, was in the Zeidans nearly head-on, according passenger seat when a police car to the lawsuit and court testimony. Detroit Offi ce driven by Lt. Thomas Mulhern Jurors in April awarded 2605 E. Oakley Park Road, Walled Lake, MI 48390 struck the vehicle as her husband $3.5 million for suffering from the (248) 669-4286 www.avispl.com | 800.282.6733 turned left at 13 Mile and Utica time of the crash, plus $300,000 per roads. The collision caused multiple See Crash, Page 15 20100301-NEWS--0014,0015-NAT-CCI-CD_-- 2/26/2010 11:47 AM Page 2

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 15 Focus: Law Estate Development Co. v. Oakland County Road Commission Flooded lots Professor Alan Schenk

A developer with six large lots Ⅲ Venue: Oakland County Circuit planned for development off Or- Court, Judge Steven Andrews chard Lake’s Mirror Lake was Ⅲ Case filed: March 26, 2004 awarded $2.2 million after the Road Ⅲ Verdict: $2.2 million, March 18, Commission for 2009 Oakland County, Ⅲ Plaintiff: Estate Development during a road Co., Orion Township construction Ⅲ Lead attorney: Michael Crow, project on Ponti- Secrest, Wardle, Lynch, Hampton ac Trail, blocked Truex and Morley P.C., Farmington the drain serv- Hills ing the lake and Ⅲ Defendant: Road Commission caused it to for Oakland County. Third-party flood. defendant: Thompson-McCully Co. In the lawsuit, Ⅲ Lead attorney: Steven Potter, Crow Estate Develop- Potter, DeAgostino, O’Dea & ment said it repeatedly asked the Patterson, Auburn Hills Wayne Law. road commission to clear the pipe Ⅲ Attorney for third party: Mary and relieve the floodwaters, but Massaron Ross, Plunkett Cooney Expert faculty leading the way. the requests were ignored. P.C. Estate Development’s proposed development on six to eight acres contractor Thompson-McCully, which around Mirror Lake, which previ- sued subcontractors. The jury said ÊÊÊÊUÊ6ˆLÀ>˜Ìʏi}>ÊVœ““Õ˜ˆÌÞ
ÀiÊޜÕʈ˜ÌiÀiÃÌi`ʈ˜ÊVœ˜Ìˆ˜Õˆ˜}ÊޜÕÀÊ ously was approved by the village the road commission and Thomp- ÊÊÊÊUÊ ÝVˆÌˆ˜}ÊÕÀL>˜Êi˜ÛˆÀœ˜“i˜Ì i}>Êi`ÕV>̈œ˜ÊÌ ÀœÕ} Ê7>ޘiÊ>ܽÃÊ of Orchard Lake, was subsequent- son-McCully were responsible; the ° °Ê«Àœ}À>“¶Ê œ˜Ì>VÌÊÕÃÊ̜`>ÞÊ>ÌÊ ly destroyed by the flooding. case is next to be reviewed by the ÊÊÊÊUʘÌiÀ˜>̈œ˜>ÞÊÀiVœ}˜ˆâi`Êv>VՏÌÞ The jury found in favor of the Michigan Court of Appeals. ÊÊÊÊUÊ"ÕÌÃÌ>˜`ˆ˜}Ê«À>V̈̈œ˜iÀà “«Àœ}À>“JÜ>ޘi°i`ÕʜÀʭΣήÊxÇLJ plaintiff. The road commission sued — Brett Callwood ÊÊÊÊUÊ ÝVii˜ÌÊ՘ˆÛiÀÈÌÞÊÀiÜÕÀVià äännÊvœÀʓœÀiʈ˜vœÀ“>̈œ˜°

Johnson Controls Inc., Bridgewater Interiors L.L.C. v. Fisher & Co. Inc., dba Fisher Dynamics Supply chain litigation ÊÊÊÊÊÊÊÊÊÊÊÊÊUÊÊÊÊ
 Ê ,ÊÊÊÊUÊÊÊÊlaw.wayne.edu Johnson Controls Inc. recovered Ⅲ Venue: Macomb County Circuit more than $3.7 million under a Ma- Court, Judge Matthew Switalski comb County judgment in the law- Ⅲ Case filed: April 30, 2008 suit it brought, along with Detroit- Ⅲ Judgment: $3.7 million pursuant based Bridgewater Interiors L.L.C., to July 2009 court ruling. Sept. 25, against St. Clair Shores-based Fish- 2009 er Dynamics over surcharges tied to Ⅲ Plaintiffs: Johnson Controls Inc., soaring steel prices in early 2008. Bridgewater Interiors L.L.C. The tier-one suppliers got a tem- Ⅲ Lead counsel: E. Powell Miller, porary restraining order and sued The Miller Law Firm P.C., for breach of contract, common-law Rochester, for JCI; David Griem, of conversion and for claim and deliv- counsel, Jaffe Raitt Heuer & Weiss ery after Fisher began imposing sur- P.C., Southfield, for Bridgewater charges to absorb higher steel costs Ⅲ Defendants: Fisher Dynamics and threatened to stop shipping Ⅲ Lead counsel: Fredric Smith, parts for seat assemblies. Conver- partner, Warner Norcross & Judd sion is the taking or holding of as- L.L.P., Southfield sets without consent of the owner. During litigation, JCI paid more ceived nearly $1.4 million from its than $2.9 million worth of sur- OEM buyers tied to materials costs charges and placed another $2 mil- and had failed to turn over a key lion in escrow. The tier-one suppli- exhibit to Fisher before trial. ers allege Fisher was not allowed to An August court order in the raise prices for material costs, un- case authorized JCI to recover the der an agreement dating from 1998. $2 million paid into escrow but de- Judge Switalski found in July af- ducted the $1.4 million from a pri- ter a trial that the surcharges or $3 million or so that was paid di- breached the contract and JCI was rectly to Fisher — for a net entitled to recover them — but also judgment of about $3.7 million. found that JCI had already re- — Chad Halcom Crash: Cruiser struck car ■ From Page 14

year over eight years based on ac- Ⅲ Venue: Macomb County Circuit tuarial projections for her life ex- Court, Judge Mark Switalski pectancy. St. Paul, Minn.-based Ⅲ Case filed: Feb. 7, 2008 The Travelers In- Ⅲ Judgment: $6.1 million, May surance Cos. Inc. 2009 is the city’s in- Ⅲ Plaintiffs: Suzette Zeidan, 83, of surer. St. Clair Shores; husband-driver With other Sam Zeidan was dismissed before costs added in, trial. the court en- Ⅲ Lead counsel: Ven Johnson, tered a final partner, Fieger, Fieger, Kenney, judgment of Johnson & Giroux P.C., Southfield nearly $6.1 mil- Ⅲ Defendants: City of Roseville, lion in late May. police Lt. Thomas Mulhern Johnson The city later Ⅲ Lead counsel: Timothy brought a motion for new trial but Tomlinson, partner, York Dolan & withdrew that request in August. Tomlinson P.C., Clinton Township — Chad Halcom 20100301-NEWS--0016-NAT-CCI-CD_-- 2/26/2010 12:14 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 1, 2010 Focus: Law

Eight Mile Style L.L.C. et al Venue: U.S. District Court, Detroit, Judge Anna Diggs Taylor v. Apple Computer Inc. et al Case filed: July 30, 2007 CONFUSED ABOUT Settled: Oct. 2, 2009 Settlement: Undisclosed but estimated at more than $2 million. Alleged SOCIAL MEDIA? Download dispute revenue of downloads at trial was $2.58 million. Eight Mile Style L.L.C., the Fern- Plaintiffs: Eight Mile Style L.L.C. and copyright manager Martin Affiliated dale record label of rapper Em- L.L.C., both of Ferndale. inem, settled before completing a Lead attorneys: Richard Busch, partner, King & Ballow, Nashville; co- federal court trial in its lawsuit counsel Howard Hertz and Jay Yasso, partners, Hertz Schram P.C., over iTunes downloads of 93 Em- Bloomfield Hills inem recordings. Defendants: Apple Computer Inc., Cupertino, Calif.; Aftermath The record la- Entertainment, Santa Monica, Calif. bel brought suit Lead counsel: Kelly Klaus, partner, Munger Tolles & Olson L.L.P., Los in 2007, alleging Angeles; co-counsel Daniel Quick, partner, Dickinson Wright P.L.L.C., Bloomfield Hills that a licensing agreement for closed due to a confidentiality The record label had claimed those record- agreement, but Eight Mile Style Apple did not have proper licens- ings did not al- lead attorney Richard Busch of ing to release the Eminem tracks, low record label Nashville-based King & Ballow said and sought damages including a Aftermath Enter- the case was “resolved to the satis- portion of iTunes sales traditional- tainment or par- faction of both parties.” ly distributed to recording artists. ent company Eight Mile Style and copyright Eight Mile Style had estimated Busch Universal Music manager Martin Affiliated sued for before trial that Apple earned up Group to make a separate agree- to $2.58 million on iTunes down- MARKETING PR DESIGN NEW MEDIA copyright infringement, unfair ‡ ‡ ‡ ment allowing sales via Apple’s loads of various Eminem record- identitypr.com competition practices under state popular iTunes software and on- and federal law, violations of the ings. Legal sources said that claim line store. Michigan Consumer Protection Act would likely net a settlement After four days of trial testimo- and tortious interference — volun- worth $2 million or more, and an ny, the companies entered a settle- tary conduct not covered under con- agreement to pay the artist’s label ment Oct. 2. Terms were undis- tract law that disrupts another com- a cut from future downloads. pany’s lawful business practices. — Brett Callwood

Attorney General, Michigan Public Service Commission v. Detroit Edison Co., Constellation NewEnergy Inc. et al Utility rate increase ® Best Lawyers The Michigan Supreme Court in Venue: Michigan Supreme Court May found that Detroit Edison Co. Case filed: 2003 at MPSC could not impose a rate increase to Decision: $63.8 million-per-year, consumers in connection with par- 40-year increase rejected by 5-2 has recognized ent company DTE Energy Co.’s costs court majority, May 1, 2009 to acquire MCN Energy Group Inc. Plaintiffs: Michigan Public Service E. Powell Miller several years ago. Commission, office of state attorney The utility company went to the general Michigan Court of Appeals after the Lead counsel: Albert Ernst and as Best Lawyers' Michigan Public Service Commission Gary Gordon, member-shareholders, denied its request to levy a rate in- Dykema Gossett P.L.L.C., Lansing; "Bet-the-Company" crease to recover $590 million, plus Assistant Attorney General Donald interest, of the nearly $900 million Erikson DTE had paid above the market Defendants: Detroit Edison Co., Litigator of the Year value of MCN in the 1999 purchase. Constellation NewEnergy Inc., et al Edison has sought for at least Lead counsel: William Fahey, for the Detroit Area. seven years to impose the in- partner, Fahey Schultz Burzych crease, valued at $63.8 million for Rhodes P.L.C., Okemos last year, according to past testi- mony from Daniel Brudzynski, ney general that allowed Edison to vice president of regulatory affairs impose a cost increase to cover en- at DTE. ergy transmission costs. In 2007, the appeals court re- That ruling set a precedent as versed the MPSC, but last May the the first time the high court had Supreme Court reversed the lower addressed the mechanism Edison court, upholding the MPSC’s deci- had used as the basis for cost re- sion to deny the rate increase. covery, according to member- The attorney general’s office shareholder Gary Gordon at Dyke- lost on a separate portion of case: ma Gossett P.L.L.C., who The Supreme Court upheld an represented the MPSC. MPSC ruling opposed by the attor- — Chad Halcom

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March 1, 2010 CRAIN’S DETROIT BUSINESS Page 17 United Way plans program to help schools feed more kids is for schools to establish that BY SHERRI WELCH teachers to offer free meal pro- Bill Sullivan, CRAIN’S DETROIT BUSINESS grams at the start of the school director of the breakfast program at the beginning day, rather than before it, also pre- 2-1-1 health and of class,” for all students, Levin The United Way for Southeastern sents challenges at some schools, human services said. Michigan plans to launch a pilot Sullivan said. hot line for The work is fraught with issues, program in March to embed “food “Schools ask where they would United Way, said Levin said. navigators” in school districts in get money to staff the (free) meals, the food “Any time you make a change in Wayne, Oakland and Macomb keep the lights on, or bus the stu- navigators a school building, there’s going to progam will help counties to make free and reduced- dents home,” he said. be a little resistance; you’re going to to permanently cost meals more accessible to have to change the way people do The money to develop and run change the needy students. free meal programs at schools is their jobs, such as janitors and the The program also hopes to in- system of reimbursable from the U.S. Depart- feeding cafeteria folks. crease the number of students reg- ment of Agriculture, he said. students. Hazel “It takes a little bit of getting used istering for existing programs. “But throwing money at the Park’s Webster to, but in the end everyone thinks The state of Michigan requires problem isn’t the answer. I think Elementary the effort is worth it because kids districts with needy students to of- it’s about introducing new ways of participates in a benefit so much,” Levin said. fer free and reduced-cost lunch pro- lunch program. (schools) doing business,” Sulli- DUSTIN WALSH/CRAIN’S DETROIT BUSINESS United Way’s food navigator ap- grams and to offer breakfast pro- van said. proach is laudable, she said. grams if more than 20 percent of Enter the food navigators. the tri-county area are eligible and of schools in Michigan provide a “The schools really need help in students enrolled qualify for the United Way plans to hire four most are receiving free lunch, Sul- breakfast program. these tight times. This is a wonder- programs. people to serve as food navigators livan said. But less than a third of “But the problem is it’s harder ful public-private partnership.” But no such mandate exists for by March and another six by the them are getting free breakfast. for kids to participate in breakfast FRAC is also working with Unit- making after-school snacks, sup- end of the year, Sullivan said. The Research shows that offering than in lunch because … the buses ed Way to encourage more schools pers and summer meals available to breakfast to all students in low-in- would have to get there on time,” in low-income areas offering after- students, said Bill Sullivan, direc- navigators will help set up free come districts at the beginning of Levin said. school snacks, supper and summer tor of the 2-1-1 health and human meal programs at schools that ex- school day decreases tardiness and There are also other barriers to meal programs. services hot line for United Way. press readiness to put them in absenteeism and improves perfor- participation, she said. “There are other organizations Offering other free meals “is at place, Sullivan said. mance, said Madeleine Levin, se- “Kids that walk to school in De- like health departments and YMCA the will of the school or district. They also will be called on to nior policy analyst at the Food Re- troit may want to hang out in the and YWCA that can do the pro- Schools are relying on their own as- help willing schools and districts search and Action Center, a school yard with their friends grams in the summer with (fewer) sessment of need and their capacity shift their breakfasts to the begin- Washington, D.C.-based nonprofit rather than eating breakfast...What hurdles.” to provide those programs,” he said. ning of the school day, rather than working with United Way. we have been promoting with Unit- Sherri Welch: (313) 446-1694, Parents often are unaware of before it, so more children get fed. According to FRAC, 81.5 percent ed Way in Southeastern Michigan [email protected] free meal programs, and for some, “We want to help so that kids illiteracy prevents them from fill- who are hungry can be fed. We ing out applications to enroll their think the food navigators will help children in the programs. schools achieve this, and by doing Union rules and unwillingness so … permanently (change) the among some administrators and system.”About 290,000 children in Food navigator program part of larger effort to close hunger gap

BY SHERRI WELCH Southeastern Michigan and Oak CRAIN’S DETROIT BUSINESS Park-based Forgotten Harvest dis- tribute another 6 percent of the to- United Way for Southeastern Michi- tal emergency food coming into gan’s food navigator program is the region — about 45 million part of a three-pronged approach pounds per year at last count. to meet the rising need for food in “Clearly our strategies are a depressed economy. around the best ways to eliminate United Way is using a report the gap,” said United Way Presi- completed last summer by Min- dent and CEO Michael Brennan. neapolis-based McKinsey & Co. as a Bank of America recently made a guide. $400,000 grant to United Way to The report, funded by the W.K. help fund its efforts to improve ac- Kellogg Foundation and the Kresge cess to benefits. Foundation, projects that by 2013 The Michigan Association of Unit- one in four people living in South- ed Ways is developing a Web site — east Michigan won’t have enough supported with a $275,000 grant In here, it’s more than a game. food. It also identified a current from the DTE Foundation — to serve gap of about 120 million meals and as a portal for eligible Michigan projected demand would outpace residents to apply for benefits and supply by about 300 million meals reduce the amount of public bene- by 2013. fits currently left on the table, It’s an experience. Based on the report’s recom- Brennan said. mendations, United Way is fo- Aligning with another study cused on three goals: Multiple Season Ticket Packages Ⅲ recommendation, United Way last Increasing the number of peo- year designated $600,000 over available for the first time ever! ple registered for public benefits. three years to develop additional Ⅲ Increasing the capacity of the client choice pantries, which look Packages starting at 10 games local nonprofit food distribution and operate much the same as a system. grocery store and offer longer Experience Tigers baseball in first-class fashion in a Ⅲ Advocating policy changes hours of operation. plush, prestigious atmosphere rich with exclusive benefits: that will make more people eligi- United Way also is overseeing ble for benefits. grants targeted to the pantry net- t Game tickets and reserved seats t One VIP parking pass for every Currently, about half of the work for purchasing food and im- t All-you-can-eat dinner and four seats purchased emergency food coming into the proving access to it, Brennan said. dessert buffet including t Large private bar with a complete region is through public programs The agency is also chairing a lo- non-alcoholic beverages selection of beer, wine and spirits such as free lunches, food stamps cal board that’s overseeing more and the Women Infants and Chil- than $2 million in federal funds dren program. Friends and rela- from the Emergency Food and Shel- tives of those in need contribute ter Program to support local efforts another quarter of emergency food to feed and house needy people. Call 313-471-2222 assistance. Sherri Welch: (313) 446-1694, or email [email protected] Gleaners Community Food Bank of [email protected] 20100301-NEWS--0018-NAT-CCI-CD_-- 2/26/2010 11:27 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 1, 2010 Tax Experience Downturn good for expanding accounting firms In Your Corner. BY TOM HENDERSON area firm with 840 employees as of go operations through acquisi- CRAIN’S DETROIT BUSINESS the beginning of the year, said it’s tions. a good time to expand through ac- “We’re looking at a couple of The economic downturn is pro- quisition, and his firm expects to mergers there. We’re talking to viding opportunities for expansion do so, as well. people all the time,” he said. for at least a few local accounting “There are more opportunities Krater said the company also ex- firms. out there with the downturn,” said pects to expand into Kentucky and Doeren Mayhew, a Troy-based ac- Krater. He said Plante & Moran Tennessee to serve its Japanese- counting and consulting firm, has added 50 employees through an ac- based auto parts suppliers. kicked off an expansion campaign quisition in Cincinnati last July Tom Henderson: (313) 446-0337, with the purchase of Troy-based and is looking to expand its Chica- [email protected] R.W. Frickel Co., a seven-person firm with $2.5 million in revenue that focuses on the construction industry. “It adds 50 contractors to our portfolio. It’s a really nice addition to one of our key niche areas,” said Mark Crawford, Doeren’s man- aging director. Crawford Doeren also fo- cuses on the construction industry. Crawford said Doeren, which be- gan the year as the eighth-largest Marla Carew Tax Attorney accounting firm in Southeast [email protected] Michigan, with 200 employees, plans on “at least two more acquisi- tions and perhaps several” of small local firms this year and to an- nounce a major expansion out of state in the next couple of months. He declined to name the city, but said it would fit in with plans an- nounced last year to expand into the Southwest or Southeast. 866-4VARNUM www.varnumlaw.com Doeren opened up a two-person I Novi (Metro Detroit) I Grand Rapids I Kalamazoo I Grand Haven I Lansing office in Houston last November. Crawford said Doeren had rev- enue of about $36 million last year. He said he wanted to add $4 mil- lion in revenue through internal growth this year and $12 million through acquisitions. Keeping it real... “We’re about 75th in size in the U.S. now. Our goal is to get to about the 50-60 range. We don’t keeping it want to get any bigger than that,” he said. He said that while the recession has lowered the price of doing Michigan deals, the chief driver behind ac- quisitions is the need for small firms such as Frickel to be able to add resources and a wider range of services for their existing clients, or risk losing them. “It’s harder for small firms to keep up,” he said. Crawford said that while Doeren wants to grow its geographic foot- I learned about InternInMichigan.com print, “from my parents. I wanted an internship “We’re firmly committed to Michi- in the health industry before going gan. We’re doing mergers here and to law school. The internship I found growing our practice here. We’re going to remain headquartered through the site allowed me to test here.” Got run a possible profession. Another accounting and con- Kylie Angileri, a graduate of Denison University, sulting firm, Saginaw-based found her health policy internship through” Rehmann, whose Troy office is the InternInMichigan.com seventh-largest in Southeast Ethos? Michigan with 224 employees, kicked off a geographical expan- To find quality interns, post sion in January, when its Rehmann 4th Annual your internship opportunities Financial business unit acquired EMU Ethos Week at InternInMichigan.com Dawson Wealth Management, a Cleveland-based firm with $1.4 bil- March 15-19 lion under management. Capstone Lunch March 19: Rehmann Financial made a sec- I EMU Student Center Real people. ond Cleveland-area acquisition in I $35 general public February, of Cotter Advisory Group I $5 EMU students L.L.C., a boutique firm with $200 Real opportunities. million under management, and has memoranda of understanding Real to acquire a third Cleveland firm connections. and three in southern Florida. Keynote Speaker, Robert Bobb, For ticket information, Gordon Krater, managing part- Emergency Financial Manager, call 734.487.4140 or visit cob.emich.edu ner for Southfield-based Plante & Detroit Public Schools Moran P.L.L.C., the second-largest DBpageAD.qxd 2/8/2010 11:07 AM Page 1

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Page 20 CRAIN’S DETROIT BUSINESS March 1, 2010

CRAIN'S LIST: LARGEST ASIAN-OWNED BUSINESSES Ranked by 2009 revenue

Company Revenue Revenue Local Local Percent Address ($000,000) ($000,000) Percent employees employees Asian- Rank Phone; Web site Majority owner 2009 2008 change Jan. 2010 Jan. 2009 owned Type of business NYX Inc. Chain Sandhu $180.0 $232.0 -22.4% 1,100 1,100 NA Plastic injection molding 1. 36800 Plymouth Road, Livonia 48150 CEO (734) 462-2385; www.nyxinc.com

Saturn Electronics & Engineering Inc. Wally Tsuha 141.6 151.0 -6.2 114 124 100 Manufacturing 2. 2120 Austin Ave., Rochester Hills 48309 chairman and CEO (248) 853-5724; www.saturnee.com

HTC Global Services Inc. Madhava Reddy 111.0 85.0 30.6 260 240 100 Application development and maintenance, business 3. 3270 W. Big Beaver Road, Troy 48084 president and CEO process management, document and content management (248) 786-2500; www.htcinc.com and PMO services

Acro Service Corp. Ron Shahani 102.0 105.0 -2.9 850 868 100 Staff augmentation (information-technology, engineering, 4. 39209 Six Mile Road, Suite 250, Livonia 48152 president, chairman and office support, industrial, other), outsourcing and IT and (734) 591-1100; www.acrocorp.com CEO engineering consulting

KC Integrated Services L.L.C. Kenyon Calender 79.0 79.0 0.0 330 330 100 Logistics and truckload transportation 5. 25840 Sherwood, Warren 48091 CEO (800) 476-6317; www.kcintegrated.com

Synova Inc. Raj Vattikuti 65.5 92.0 -28.8 652 NA 100 Information-technology consulting and IT staffing 6. 1000 Town Center, Suite 700, Southfield 48075 chairman and CEO (248) 281-2500; www.synovainc.com

Saturn Electronics Corp. Nagji Sutariya 21.4 26.0 -17.7 155 155 100 Printed circuit board manufacturer 7. 28450 Northline Road, Romulus 48174 president (734) 941-8100; www.saturnelectronics.com

Roy Smith Co. Peter Wong 20.0 20.0 0.0 NA 22 100 Solution provider for industrial gases, welding robotics, 8. 14650 Dequindre, Detroit 48212-1597 president consumables, welding engineering and consultation and (313) 883-6969; www.rscmain.com uniform and fire resistant garments

Ebinger Manufacturing/ Janny Lu 19.7 24.7 -20.4 18 21 100 Manufacturing and master distribution 9. Jets Manufacturing Co. president and CEO 7869 Kensington Court, Brighton 48116 (248) 486-8880; www.ebinger-mfg.com Rapid Global Business Solutions Inc. Bati Devi 18.5 15.4 20.1 295 210 100 Engineering design, staff augmentation, vendor 10. 31791 Sherman Ave., Madison Heights 48071 management services, payroll (248) 589-1135; www.rgbsi.com

This list of Asian-owned businesses is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA means not available. LIST RESEARCHED BY ANNE MARKS

Urban Land Institute Ductz sweeps into carpet, upholstery cleaning to showcase properties The Urban Land Institute Detroit District Council will host a Metro BY SHERRI WELCH work to allow franchisees to in- allow them even more contacts Its management teams fly in to Marketplace deal-making event CRAIN’S DETROIT BUSINESS crease their revenue,” Rotche with homeowners to really share evaluate the projects and then said. “But … it’s taken on a life of our (indoor air quality) exper- staffs them with franchisees from March 24 at Oakland University. Less than a year after launch- its own.” tise,” Rotche said. across the country. The event, held with Southeast Michigan Council of Governments and ing a commercial hood-cleaning After initially offering Hoodz Like Ductz with its decision to In January, Ductz and its fran- the Michigan Suburbs Alliance, will business, Ductz International L.L.C. franchises to its Ductz fran- enter the carpet and upholstery chisees worked on four major pro- feature speakers Paul Tait, SEM- is entering the residential carpet chisees, the Ann Arbor-based cleaning business, Troy-based jects: one of the Hershey buildings COG; Greg Erne, Redico L.L.C.; Sue and upholstery market. company opened them up to Modernistic also was responding in Pennsylvania, a Santa Barbara Mosey, University Cultural Center As- President and Founder John everyone. to customer requests when it be- courthouse, a city transit building sociation; Bill Phillips, The Windham Rotche expects the new Total Care Overnight, Hoodz has become gan offering duct cleaning to resi- in Milwaukee and the Coleman A. Group; and Eric Schertzing, chair carpet and up- the nation’s largest kitchen ex- dential customers three months Young Municipal Center in De- of the Ingham County Land Bank. Fol- holstery clean- haust-cleaning company and one ago. troit. lowing will be 90 minutes for munic- ing service line, of the fastest-growing franchisees Since Modernistic launched the In March, Ductz will begin an- the popularity in America, serving major restau- business in October, “we’re very ipalities, schools and nonprofits to other major cleaning project at showcase properties for investors. of the compa- rant chains across the U.S., busy with it,” said Bob McDonald, the National Aeronautics and Space ny’s recently Rotche said. president, who has been in carpet Details: http://detroit.uli.org. Administration campus in Cape — Nancy Kaffer launched Hoodz Rotche and the company see the and upholstery cleaning for over Canaveral, Fla., Rotche said. commercial same opportunity with carpet and 35 years. Last year, the Ductz’s National hood-cleaning upholstery cleaning. “Because we serve so many Service Team projects brought in franchises, and Ductz plans to roll out the new customers every day — 2,000 in about $3 million of its $17 million large, national Total Care line in March so it can metro Detroit a month and 5,000 Ann Arbor wants Google network Rotche in revenue, he said. duct-cleaning improve indoor air quality from across the state — it’s just a nat- Even Ductz’s namesake brand The city of Ann Arbor and the projects to increase the compa- the ground up, Rotche said. ural if we talk to these customers has continued to grow. University of Michigan are working ny’s revenue to between $25 mil- “Historically, we’ve grown our and ask if they’ve had their ducts Last year, it sold 40 new Ductz on a proposal to be one of the first lion and $30 million this year, up business as B-to-B — we’d net- cleaned.” franchises, giving it 178 territo- communities to install Google’s from $17 million in 2009. work with contractors and get re- Modernistic closed 2009 almost ries across the country, said new ultra-fast broadband network. “In franchising, diversification ferrals,” he said. flat at $6.5 million in revenue, Mc- Rotche. Google announced Feb. 10 its is key,” said Rotche. Now, to increase its brand Donald said. Ductz recently purchased its planned “experiment” to build and “It’s the role and obligation of recognition with consumers, He’s projecting the company’s test a new type of high-speed broad- Ann Arbor headquarters build- the franchisor to ensure the suc- Ductz plans to launch a $250,000 duct-cleaning business — which band technology in communities ing for an undisclosed amount cess of your franchisees … by pro- television, radio and print adver- he says will never be core like its around the country. The network “to continue our investment into viding them with opportunities to tising campaign. carpet and upholstery business — would be about 100 times faster the franchise space,” Rotche increase their revenue.” Rotche said he expects Total will bring in about $300,000 in the than most broadband currently said. The company’s new Hoodz fran- Care to do $4.5 million in con- first year. available. Google is seeking propos- chise “is everything we hoped it sumer sales after its launch, “That’s 5 percent of our sales. It plans early this year to invest als from municipal governments. would be and 10 times more,” based on conservative estimates It’s not much, but it’s growth,” he up to $500,000 to build a commer- Ann Arbor Mayor John Hieftje Rotche said. that about half of Ductz fran- said. “Carpet-upholstery and duct cial kitchen at its headquarters said the city is working on a plan Since last May, when it chisees will offer the new service. cleaning both go hand in hand as that will be used to not only to that would provide the network for launched the commercial hood- Ductz International will receive far as indoor air quality.” feed its trainees who travel to Ann Arbor’s central business dis- cleaning business, Ductz has sold a royalty from every cleaning Since its early days, Ductz has Ann Arbor from around the coun- trict, the university and possibly 69 Hoodz franchises, and it ex- done. relied on large projects across the try but also to train its new Hoodz city residents. pects to award another eight this “What’s great for the fran- country to help buoy its fran- franchisees. The proposals must be submit- month. chisees is there is a very strong chisees’ revenue during periods Sherri Welch: (313)446-1694, ted to Google by March 26. “We looked at Hoodz as repeat repeat business, and it’s going to of low revenue in local markets. [email protected]. — Ryan Beene 20100301-NEWS--0021-NAT-CCI-CD_-- 2/26/2010 11:51 AM Page 1

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 21

Spotlight on minority-owned businesses

Ranked by revenue, these Hispanic-owned businesses Native American-owned businesses Top-five totals Hispanic-owned and Native Here’s combined revenue of the top five American-owned businesses Elder Automotive 1991 $46 million Rush Trucking 1999 $90 million Hispanic-owned and Native American- were among the top 10 when Group (formerly Today $296.7 million Corp. Today $80 million owned companies then and now. (Not all they first appeared on Crain’s Troy Ford) companies at left were represented.): lists and are also among the top-ranked today. The Gonzalez Design Group 1991 $14.4 million Systrand 1999 $45.7 million Hispanic-owned businesses Hispanic-owned business list (formerly Gonzalez Today $85 million Manufacturing Today $20 million 1991 $294.1 million first appeared in 1991, and Design Engineering) Corp. the Native American-owned Today $922.5 million business list first ran in Aztec Manufacturing 1999. 1991 $6.8 million Native American-owned businesses Corp. Today $19 million 1999 $213.6 million Today $129.4 million

CRAIN'S LIST: LARGEST NATIVE AMERICAN-OWNED BUSINESSES Ranked by 2009 revenue

Percent Company Revenue Revenue Local Native- Address ($000,000) ($000,000) Percent employees American Rank Phone; Web site Majority owner 2009 2008 change Jan. 2010 owned Type of business Rush Trucking Corp. Andra Rush $80.0 $90.0 -11.1% 198 100% Motor carrier 1. 35160 E. Michigan Ave., Wayne 48184 president (734) 641-1700; www.rushtrucking.com Arrow Strategies Jeff Styers 21.7 18.3 18.3 202 51 Staffing 2. 30300 Telegraph Road, Suite 117 president and Bingham Farms 48025 owner (248) 502-2500; www.arrowstrategies.com Systrand Manufacturing Corp. Sharon Cannarsa 20.0 B 28.5 -29.8 130 100 Precision machining and assembly of automotive 3. 19050 Allen Road, Brownstown Township 48183 president and CEO products (734) 479-8100; www.systrand.com Human Capital Staffing L.L.C. Mary Oxendine 5.4 9.6 -44.0 228 100 Staffing services and human resources 4. 6001 Adams Road, Suite 208, Bloomfield Hills 48304 Adams (248) 593-1950; www.hcsteam.com president R.B. Construction Co. Russell Beaver 2.3 1.9 22.8 3 100 Construction services 5. 6489 Metro Parkway, Sterling Heights 48312 president and CEO (586) 264-9478; www.rb-construction.com

This list of Native American-owned businesses is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available. B Crain's estimate. LIST RESEARCHED BY ANNE MARKS

CRAIN'S LIST: LARGEST HISPANIC-OWNED BUSINESSES Ranked by 2009 revenue

Company Revenue Revenue Local Percent Address ($000,000) ($000,000) Percent employees Hispanic- Rank Phone; Web site Majority owner 2009 2008 change Jan. 2010 owned Type of business The Diez Group Gerald Diez $350.0 $525.0 -33.3% 240 100% Steel sales, processing, stamping and assembly 1. 8111 Tireman Ave., Dearborn 48126 chairman and CEO (313) 491-1200; www.thediezgroup.com

Elder Automotive Group Irma Elder 296.7 500.1 -40.7 408 100 Automobile dealerships 2. 777 John R Road, Troy 48083 CEO (248) 585-4000; www.elderautomotivegroup.com

VisionIT David Segura 101.0 102.0 -1.0 485 100 IT consulting, managed services, staffing, vendor 3. 3031 W. Grand Blvd., Suite 695, Detroit 48202 CEO management (877) 768-7222; www.visionit.com

The Ideal Group Inc. Frank Venegas Jr. 89.8 164.0 -45.2 178 100 Construction services, manufacturing, 4. 2525 Clark St., Detroit 48209 chairman and CEO technologies and integrated supply management (313) 849-0000; www.weareideal.com

Gonzalez Design Group Gary Gonzalez 85.0 68.0 25.0 420 100 Design engineering, staffing, manufacturing 5. 29401 Stephenson Highway, Madison Heights 48071 CEO technologies, integrated marketing, production (248) 548-6010; www.gonzalez-group.com systems, containers, welding systems, assembly systems, printed circuitboard assemblies PMA Consultants L.L.C. Gui Ponce de Leon 36.5 39.0 -6.4 48 100 Construction consulting. Program, project and 6. 1 Woodward Ave., Detroit 48226 managing principal and construction management and experts in dispute (313) 963-8863; www.pmaconsultants.com CEO avoidance and resolution

Marisa Industries Inc. Jesse Lopez 35.0 62.0 -43.5 250 100 Stamped metal products 7. 1426 Pacific Drive, Auburn Hills 48326 president and CEO (586) 754-3000; www.marisaind.com

Industrial Control Repair Inc. Paul Gutierrez 22.3 31.7 -29.7 107 61 Electronic and mechanical repair of industrial 8. 28601 Lorna Ave., Warren 48092 chairman and CEO equipment (586) 751-3335; www.industrialcontrolrepair.com

ASG Renaissance L.L.C. Lizabeth Ardisana 21.3 21.6 -1.4 205 51 Marketing communications, public relations, 9. 22226 Garrison, Dearborn 48124 CEO staffing, performance management and diversity (313) 565-4700; www.asgren.com services

Aztec Manufacturing Corp. Francis Lopez 19.0 21.6 -12.1 47 70 Automotive manufacturer of machine castings, 10. 15378 Oakwood Drive, Romulus 48174 chairman forging and aluminum (734) 942-7433; www.aztecmfgcorp.com

This list of Hispanic-owned businesses is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available. LIST RESEARCHED BY ANNE MARKS 20100301-NEWS--0022-NAT-CCI-CD_-- 2/26/2010 10:31 AM Page 1

Page 22 CRAIN’S DETROIT BUSINESS March 1, 2010

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

Help for Job-hunting GM workers find strength in numbers job seekers Local group forms to share skills, leads and moral support

areerWorks is a BY DUSTIN WALSH But on October 2008, after nearly nearly 23 years. al outplacement service, they’re C weekly collection of SPECIAL TO CRAIN’S DETROIT BUSINESS 24 years with the company, Can- She said the group provides her supporting many people and advertising, news nello accepted a buyout. with a one-stop location for her you’re just another unemployed and information geared to- During the past two years in the “I had never been on my own job-search needs — support, assis- worker,” she said. “This group of- automotive industry, thousands of ward readers in career tran- before,” she said. “I hadn’t even tance and structure. fers personal support.” offices have gone dark, name plac- sition or looking for new updated my résumé in nine or 10 “Everyone shares information Perkins also said that making ards have been years.” with each other,” she said. “Two every member accountable with jobs. stripped CareerWorks is also on- Cannello, heads are better than one, and we weekly updates on the job search from cubi- who had been a all bring in a lot of different re- provides everyone with a sense of line. The group cles and lo- “ manager in sources.” accomplishment and structure. On our Web site, at gin aliases was raising GM’s global lo- Therese Marie Boldt, career “When you see what you’ve www.crainsdetroit.com/ have been gistics divi- coach and author of Yes! You Can done and what you’re going to do, careerworks, you can post an erased everyone to a sion, quickly Land a Job (Even) in a Crummy it allows you to know why you’re anonymous résumé and at- from com- realized that Economy, said job support groups doing this,” she said. “Run the tract employers. You can puter sys- higher level. finding a job can help you manage your search group like a meeting and set an tems. scan the newest jobs from ” required a set much better than doing it alone. agenda, make sure everyone stays The lay- our area or all of Michigan. Amy Cannello, GM Job of skills she “People in these groups find op- accountable.” offs have Search Team didn’t have. portunities they wouldn’t have Set goals often and set goals that You can set up e-mail alerts left hordes so whenever a job that in- “I’m not a ever come across on their own,” are attainable, she said. of managers, engi- salesperson and didn’t know how she said. “More negative is going to hap- terests you is posted, you’ll neers and other professionals to sell myself,” she said. “Net- The GM search team also dou- pen than positive (in a job know about it. looking for work — some not hav- working was not easy for me.” bles as a therapy group among search),” she said. “Be account- Employers can post jobs ing been in the job market for She began reaching out to other like-minded peers, able for the stuff or search résumés for talent decades. laid-off GM workers for support. Cannello said. you can control, they seek. Amy Cannello was in that posi- “I talked to them about what I “The group like contacting tion. She began working for Gener- did and what I was going to do,” could re- People in these 10 companies or al Motors Corp. right out of college. she said. “We sent out e-mails to ally em- “ connect with each other and quickly became a pathize groups find five people in cross-function job-search team.” with your opportunities your network.” The group, now called the GM situation, The group Job Search Team, began meeting and it al- they wouldn’t topped out at 20 at a local Starbucks to discuss best lowed us and moved to practices, job research and lead to vent, have ever come Cannello’s development, she said. The too,” she home, then to a group’s participants each had dif- said. across on their conference ferent skill sets, allowing each to “And room at the concentrate on specific areas to everyone celebrat- own. Rochester Com- help the group. ed if someone land- ” munity House, “Some were good at research; I ed somewhere.” Therese Marie Boldt, career coach where the now- concentrated on generating best Boldt said that 16-member practices,” she said. “The group it’s important to keep the group fo- group meets every Tuesday. was raising everyone to a higher cused on best practices for future There have been successes, and level.” placement, not wallowing in the others are expanding their skill The group members also help past. sets. Cannello landed a job last each other prepare for job inter- “This is about sharing and sup- fall as chief strategist for Patux- views with practice sessions, she porting, not to get together and ent, Md.-based Naval Air Systems said, and job postings are e-mailed commiserate,” she said. Command, and Perkins has en- to members to keep them updated Keeping the support group rolled in advanced Microsoft Ex- on what jobs are available. small is important to keeping the cel courses. Debbie Perkins, of Troy, joined group personal, Perkins said. The “People are starting to get posi- the group after losing her job at group is holding its number of tions,” Perkins said. “There’s def- the GM Tech Center in Warren members to its current 16. initely a light at the end of the last April. She worked for GM for “When you’re using a tradition- tunnel.

CAREER EMPLOYMENT CALENDAR MOVES ESD hosts spring job fair Film tech program formed The Engineering Society of Detroit Applications are being accepted GENERAL is hosting its “Spring Engineering for a new yearlong film production and Technology Job Fair” on technician training program for March 8, 2-7 p.m., at Rock Finan- Detroit residents. cial Showplace in Novi. The program is funded by a The expo is for engineers of all $438,000 U.S. Department of Labor disciplines, trained technicians grant that pays for student costs. and students. The curriculum will be devel- The $15 fee includes a one-year oped by the Wayne County Communi- membership to the ESD for new ty College District in collaboration members, and an opportunity to with the International Alliance of network with employers. Theatrical and Stage Employees and Attendees are encouraged to en- the Michigan Film Office. AGD ter their résumés into the free ESD To apply: www.detroitmi.gov/ Job Bank at jobs.esd.org. Departments/DetroitWorkforce For more information or to reg- DevelopmentDepartment/tabid/81 ister, visit www.esd.org. /Default.aspx. 20100301-NEWS--0023-NAT-CCI-CD_-- 2/26/2010 10:30 AM Page 1

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 23

PEOPLE AUTOMOTIVE John Grant to U.S. board of direc- N THE SPOTLIGHT Callen Vickers, senior director of pur- tors, Deloitte Tax I chasing, Nissan North America Inc., L.L.P., Detroit, re- Freedom House, a Detroit-based Farmington Hills, to board of direc- maining partner. nonprofit that provides services for tors, Automotive Industry Action Michael McGuna- political refugees, has named Group, Southfield. gle to marketing Deborah director, THI Drennan EDUCATION Corp., Ann Arbor, executive Troy Glover to edu- from marketing director. cation planner, manager, Origen Drennan, 53, Fanning/Howey Financial Inc., program Grant Southfield. Associaties Inc., director for the Novi, from vice Gary Cortner to agency since executive manag- president of ur- 2006, had ing director, First ban schools, De- served as Michigan Bank, interim Jong Inc., Dublin, Troy, from presi- Ohio. dent and manag- Drennan director, ing director, The succeeding FINANCE PrivateBank, Pegg Roberts, who resigned for Glover Grosse Pointe. personal reasons in January 2009, Wayne Boucher to said Pamela Marcil, vice chair of first vice president, Leonard & Co. LAW Freedom House and director of Inc., Sterling Heights, from first vice public relations for the Detroit president, Oppenheimer & Co. Inc., Cortner Shusheng Wang Institute of Arts. Port Huron. to co-director of international busi- Drennan, who was educated in religious studies and pastoral ministry certification, has more than 30 years of nonprofit Commercial • Residential • Retail experience. Before joining Freedom House, she was coordinator of intake and outreach services at Women ARISE and transitional housing program director and community relations- intake coordinator at the Coalition on Temporary Shelter, both in Detroit. •Kitchen •Shower & Bath ness, Miller, Canfield, Paddock and Stone P.L.C., Troy, from senior attor- •Glass Fencing & Handrails ney, Butzel Long P.C., Detroit. •Landscape Glass •Partition Walls •Mirrors •Green Ideas •Online Store coffee!! FREE estimates & consultations

7420 Allen Rd | Allen Park MI opportunity!! Koval Brouwer Susan Koval to partner, Nemeth Bur- 313.928.0428 well P.C., Detroit, from senior attor- interested?? ney; also, Deborah Brouwer to partner, Trainorglass.com/retail from senior attorney. Stanley Pitts, franchise?? partner in the la- bor and employ- ment department, Honigman Miller Schwartz and Contact us at Cohn L.L.P., De- troit, to State Bar (517) 913-1987 or of Michigan, Dis- trict H Character [email protected] and Fitness Com- mittee, Lansing. Pitts . MARKETING www.biggby.com Go Green Douglas Stone to director of shopper marketing, Mars Advertising Co. Inc., Southfield, from senior executive, . Stone & Simons Advertising Inc., Green Southfield. Learn how you can reduce building MANUFACTURING RSHUDWLQJFRVWVREWDLQ¿QDQFLQJ Jim Pletcher to vice president of IRUJUHHQUHWUR¿WVDQGLPSURYH wholesale sales, Brass-Craft Manufac- your workplace at our turing Co., Novi, from senior director. Project Green Institute SERVICES in Ann Arbor or online at JSVig.com. Rhonda Powell to executive director, Macomb County Rotating Emergency Shelter Team, Roseville, from associ- Contact Joe Vig to ate director, South Oakland Shelter, schedule a consultation. Birmingham. [email protected] Doug Decaire to general manager, 313.477.1060 Xpedx, Detroit, from regional sales www.jsvig.com manager, Wausau Paper Co., Wausau, Wis. 20100301-NEWS--0024-NAT-CCI-CD_-- 2/26/2010 11:34 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS March 1, 2010

NATURAL GAS / PROPANE HEATERS CALENDAR WEDNESDAY mail: [email protected]; Web CELEBRATE M&A AWARD site: www.esc-detroit.org. MARCH 3 How to Brand Your Business Using So- WINNERS MARCH 18 Detroit Economic Club. 11:30 a.m.-1:30 cial Media. 11:30 a.m.-1 p.m. Lunch p.m. March 10. With Michael McCal- Crain’s Detroit Business, in lister, president and CEO, Humana, Ann Arbor Marketing. With David Ki- association with the Association ley, vice president of content, brand Townsend Hotel, Birmingham. $45 for Corporate Growth-Detroit members; $55 guests of members; $75 development, Icon Creative Technolo- Chapter, presents the third annual gies. Conor O’Neill’s, Ann Arbor. $3 nonmembers. Contact: (313) 963-8547; Crain’s M&A Awards 5-9 p.m. Web site: www.econclub.org. Portable Heaters (Natural or LP Gas) from 16,000 donation suggested; lunch includes March 18 at Big Rock tip, drink and meal for $10. Contact: Chophouse/The Reserve, 325 S. to 4,000,000 BTU’s are available for sale or rent. (734) 272-4698; [email protected]; Web Managing the Public Conversation: Eton St., Birmingham. Also in stock are Ground Thawers and Fans. site: la2m.org. Comment Moderation at Awards will be given out to honor AnnArbor.com. 11:45 a.m.-1 p.m. March companies and executives in the 10. Lunch Ann Arbor Marketing. THURSDAY following four categories: Best With Edward Vielmetti, lead blogger at MARCH 4 Deal of the Year, Deal Maker of AnnArbor.com. Conor O’Neill’s, Ann *Lift Truck Fuel* *Temporary Heat* the Year, Expansions, and Lifetime Arbor. $3 suggested donation; lunch Industry Cocktails: Finance, Legal and Achievement. $10. Contact: (734) 272-4698; e-mail: HR. 4:30-6 p.m. Detroit Regional Cham- Tickets are $60 each, $50 ACG [email protected]; Web site: la2m.org. ber. For those employed in the fi- members and groups of 10 or nance, legal and human resources in- more, $70 at the door. ACG Detroit Economic Club. 11:30 a.m.-1:30 7200 Inkster Rd. Phone: (313)292-9100 dustries. Lucky Strike, Novi. Free for members and groups should call p.m. March 11. With Dan Gilbert, P.O.Box 35 Fax: (313) 292-5950 members Business Builder and above. (313) 446-0300 to register. chairman and founder, Quicken Contact: (313) 596-0392; e-mail: Taylor, MI 48180-0035 www.propaneservices.net For more information, visit Loans. Westin Book Cadillac, Detroit. [email protected]; Web $45 members; $55 guests of members; site: www.detroitchamber.com. www.crainsdetroit.com. To $75 nonmembers. Contact: (313) 963- register, visit www.regonline.com/ 8547; Web site: www.econclub.org. builder/site/Default.aspx?eventid= Women and Leadership in the Work- 796821. place Symposium and Awards. 7:30 Social Media Boot Camp. 8 a.m.- a.m.-noon. Michigan Business and cussing search engines and paid cam- 5 p.m. March 11 and 8 a.m.-noon March Professional As- paigns. Detroit Zoo, Royal Oak. $20 12. American Marketing Association sociation. With chamber members Business Builder Detroit Chapter. With Toby Bloomberg Faye Alexander and above; $30 Basic members; $40 of divamarketingblog.com; Dave Evans, Nelson, president nonmembers. Contact: (313) 596-0392; author of Social Media Marketing: An 800-292-3831 and CEO, Detroit e-mail:[email protected]; Hour a Day; and Dana Vanden Heuvel, Riverfront Con- Web site: www.detroitchamber.com. founder, BlogSavant. Davenport Uni- servancy; others. versity, Livonia. $700 AMA members, indiantrails.com Fairlane Club, $960 nonmembers. Contact: (800) 262- Dearborn. $65 Best Practices from the Best-Man- 1150; Web site: www.marketingpower. members; $75 aged Nonprofits Seminar. 2-5 p.m. com. March 8. Crain’s Detroit Business; nonmembers. DTE Energy Foundation; Lawrence Contact: (734) 667- Technological University. With James Detroit 2.0 6-8 p.m. March 11. Market- Nelson 2005; Web site: Nicholson, president and CEO, PVS ing and Sales Executives of Detroit. www.michbusiness.org. Chemicals Inc.; Rich Homberg, presi- With Matt Cullen, president and COO, ONE HU G ND dent and general manager, Detroit Rock Ventures L.L.C. Management IN R T E A D Public Television. Network reception Education Center, Troy. $45 MSE R Y B E COMING EVENTS E A at 5 p.m. Buell Management Building, member; $60 nonmember; $360 mem- L R

E S C 100 Maverick Marketing Mondays. Noon- LTU campus, Southfield. $45 seminar ber table of eight; $480 nonmember 1:30 p.m. March 8. With Catherine and reception; $30 seminar; $20 recep- table of eight. Contact: (248) 643-6590; Juon, co-founder, Pure Visibility, dis- tion. Contact: (248) 395-2840, ext. 25; e- Web site: www.msedetroit.org. REAL ESTATE BUSINESS DIARY ANNOUNCEMENTS INDUSTRIAL PROPERTY ACQUISITIONS • Cash Investors • Chi Solutions Inc., Ann Arbor, a diag- Buy foreclosed homes from nostic consulting company, owned by $15,000 - $25,000 and rent them. Carilion Clinic, Roanoke, Va., an- In 2-5 years, sell the homes for 467,000 SQ. FT. AVAILABLE nounced that Chi will be acquired by double your investment. current management. Bill McMachen Easily Accessible  Low Rates  Rail  On-site Mgmt billmcmachen@comcast.net  Inovo Technologies Inc., Ann Arbor, Exterior Storage www.waretechindustrialpark.com Comfort and 586-915-4441 CATELLUS GROUP, LLC 810-695-7700 an innovation services company, has acquired Daso Consulting, St. Joseph. AUCTIONS t
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4FSWJDF RouteOne L.L.C., Farmington Hills, $FUHV]RQHG&ZLWKD6T)WVWHHO has completed integration with inde- FRPPHUFLDOEXLOGLQJZLWKODUJHSDUNLQJORW pendent subprime lender Nationwide PLQXWHVIURP866HOOLQJ$EVROXWHRYHU Acceptance Corp., Irving, Texas. Deal- /RFDWHGRQ*UDQG%ODQF5GLQ6ZDUW]&UHHNZLWK ers in markets served by Nationwide *UDQG%ODQFMXVWGRZQWKHURDG may now process credit applications /LNHFRPPHUFLDO"$OVRRIILQJDDFUHSDUFHORQWKHLQWHUVHFWLRQRI 'RUW+Z\ electronically to Nationwide through DQG:*UDQG%ODQF,1*UDQG%ODQF PLQXWHVIURP*HQHV\V+RVSLWDO3HUIHFWIRU the RouteOne platform. PHGLFDOXVH=RQHG2IILFH6HUYLFH5HDG\6HOOLQJ$EVROXWHRYHU²WKLVORZ Servant Systems, Ann Arbor, was SULFHLVLQFUHGLEOH3DVWRIIHURI 0LOOLRQ commissioned by Domino’s Pizza Switzerland, Zurich, to install the /LNHWR%XLOG"7KLV$FUHSDUFHOLVSUDFWLFDOO\RQWKHFRUQHURI 'RUW+Z\DQG: *UDQG%ODQFRII ,UDPS3HUIHFWIRU\RXUGUHDPKRPHEXLOGHURUJHWLWUH]RQHGDQG Domino’s franchise office system. JR FRPPHUFLDO 0DVWHU 3ODQQHG &RPPHUFLDO  PLQXWHV IURP *HQHV\V +RVSLWDO 6HOOLQJ$EVROXWHRYHU,QFOXGHVDGXSOH[0RQWhO\5HQWVWRWDO NEW PRODUCTS $OORI WKLVODQGLVVHOOLQJRQ0DUFKWK%HWKHUHDQGGRQ·W PLVVWKLVJUHDWRSSRUWXQLW\ St. Claire Inc., Farmington Hills, a WRRZQVRPHRI WKHEHVWODQGDWXQEHOLHYDEOHSULFHV&DOOWRGD\ IRUDEURFKXUHRUYLVLW technical communications company, XVRQOLQH has launched Sign Builder Desktop 5RVH$XFWLRQ*URXS//& Edition, new software for the creation %HWK5RVH of safety, industrial and general-pur- &$,$XFWLRQHHU  pose messages. Web site: 06$$&KDPSLRQ 5RVH$XFWLRQ*URXSFRP www.stclaire.com. 5HJLVWHUHG$XFWLRQHHU 20100301-NEWS--0025-NAT-CCI-CD_-- 2/26/2010 5:15 PM Page 1

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 25 IT center tops list of MEGA grants Southfield expansion promises to create up to 700 jobs

BY AMY LANE L.L.C. to open a factory in Auburn The company expects to create CAPITOL CORRESPONDENT Hills, where it will manufacture 275 jobs and was awarded a hybrid-electric vehicle power- $3.2 million state tax credit. LANSING – The state last week trains and retrofit vehicle fleets ■ A $3.7 million technical center granted some $25.5 million in tax with the systems. The project is ex- in Auburn Hills, by Katcon USA Inc. credits or other assistance to com- pected to create 305 jobs. The technical center will handle panies planning nearly $134 mil- The MEGA board approved an worldwide research and develop- lion in investment in Southeast $8.4 million tax credit for the pro- ment for the supplier of catalytic Michigan. ject, and the city of Auburn Hills converters and vehicle exhaust Heading the list in projected job has granted a $242,500 tax abate- systems. The project is expected to creation was a Colorado-based in- ment. create 35 jobs and is aided by a formation technology company ■ A $31.1 million investment by $534,633 state tax credit. that is planning to expand in a subsidiary of South Korea-based ■ A proposal to capture $58,500 Southfield and ultimately create Techno SemiChem Co. Ltd. to locate in state and local taxes to support a up to 700 jobs. its new North American headquar- $26.5 million expansion and Ciber Inc., which provides IT out- ters in Northville Township, creat- brownfield redevelopment by NWS sourcing and consulting services, ing 279 jobs. Michigan Inc., in Brownstown plans to establish an $8 million At the headquarters, TSC Michi- Township. U.S. development center in South- gan Inc. plans to conduct research The state-authorized distributor field. and development and pilot-produc- of wine and liquor plans to rede- The board of the Michigan Eco- tion efforts to produce electrolytes velop vacant land next to its cur- nomic Growth Authority granted for advanced lithium-ion battery rent location, to expand warehous- Ciber a $10.1 million state tax cred- cells. The project is aided by a ing and office operations and it, and the city of Southfield has $3.2 million MEGA tax credit. create 10 jobs. approved a $1.2 million tax abate- ■ A $13.3 million Chesterfield Amy Lane: (517) 371-5355, ment in support of the project, the Township project by Plano, Texas- [email protected] state announced. based Advanced Integrated Tooling Other Southeast Michigan pro- Solutions L.L.C. to produce custom jects that received MEGA board equipment, machines and tooling assistance were: to be used in the manufacture and ■ A $51.3 million project by assembly of commercial, business startup automotive supplier ALTe and military aircraft.

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Page 26 CRAIN’S DETROIT BUSINESS March 1, 2010 Blue Cross: Layoffs hurt Gieleghem: Tighter budgets, growth plans for Macomb ■ From Page 1 BY CHAD HALCOM Heights will also host a three- or union concessions this year, CRAIN’S DETROIT BUSINESS member staff of Automation Alley tentatively approved a plan to one medical group policy for Blue Industries and Pulte Homes. New experts, including primary Alley seek $18.8 million in cost cuts for Cross in the last two years, and that member groups and growth in ex- Macomb County Commission defense-auto- the 2011 budget Wednesday at its is because the group had major isting groups accounted for 80,000 Chairman Paul Gieleghem talked motive consul- budget committee meeting. health problems.” new members, he said. tighter government budgets and tant John Bedz, The full board on Thursday Dallafior said some group mem- In the individual market, Blue structural change amid falling to help star- also approved the outline for bers have left Blue Cross to seek Cross increased membership property values at his State of the tups and local cuts, along with a proposal to pay policies with other insurers. 1.6 percent in 2009 to 571,000 mem- County address Thursday — but businesses up to $50,000 toward the new spe- He said Blue Cross has been try- bers. The gains were primarily left room for growth in economic land contracts. cialist in the Planning and Eco- ing to cut health care cost increas- driven by increases in Medicare development efforts. “Businesses, nomic Development Department. es that range from 5 percent to supplemental policies and those Gieleghem, delivering his last or govern- Commissioners Ed Bruley and 12 percent per year nationally. In- who migrated from group policies, address as board chairman to an ments — we all Brian Brdak said the staffer will creases for groups are lower in said Helen Stojic, Blue Cross’ cor- audience at MacRay Harbor Inc. in reach a point be an employee of MSU, which Southeast Michigan and range in porate affairs director. Harrison Township, said the Gieleghem in our budget contributes another $50,000 and the 6 percent to 8 percent range, Despite the overall membership county will split the cost with process, no matter how complex, pay’s the employee’s legacy depending on coverage. losses, Blue Cross reversed finan- Michigan State University for a new (where) we can’t just cut our way costs. “We are working closely with our cial losses of $46.8 million for the employee in its Planning and out of this. We must find the The county has asked the local customers to bend the trend and first six months of 2009 by posting Economic Development Depart- means to grow our way out,” communities of St. Clair Shores, help them with solutions that will a slight profit of $582,972 in the ment devoted entirely to boating, Gieleghem said. Harrison Township, New Balti- actually address the costs by ad- third quarter ended Sept. 30, ac- water quality and marine recre- The county, which expects to more and Chesterfield Township dressing health, productivity, well- cording to the state Office of Finan- ational tourism. face a $23.4 million budget short- to help defray its own share of the ness of employees,” Dallafior said. cial and Insurance Regulation. The county’s defense- and fall amid falling property values, cost with $5,000 apiece. One of the biggest departing ac- Financial results for 2009 are ex- homeland security-themed busi- rising employee health care costs Chad Halcom: (313) 446-6796, counts was the state Department of pected to be released today, Stojic ness incubator in Sterling and a possible sunset of some pri- [email protected] Corrections, which accounted for said. 50,000 members, Dallafior said. Stojic declined to comment on But “we had success stories in whether Blue Cross will post a new business,” Dallafior said. profit or a loss for 2009. For example, new customers in- But in fiscal 2008 ended Dec. 31, cluded Dana Corp., Art Van Furniture, Blue Cross lost $145 million on to- Belle Tire and Mercy Memorial in tal revenue of $21.2 billion. It was Democrats seek increase in Monroe. the first time in 19 years that Blue Krause said the discounts Blue Cross could not contribute profits Cross is able to wring out of hospi- to its subscriber reserves, accord- tals and doctors helps keep costs ing Blue Cross’ 2008 annual report. renewable energy standard lower for employers that self-fund During the third quarter of 2009, health-care expenses. Blue Cross reported a net under- House Democrats are moving 30 percent standard by “keeping rates afford- “Blue Cross probably has the best writing loss of $210.6 million com- forward plans to increase the 2025. able for customers.” prices in the state for their adminis- pared with losses for the same pe- amount of electricity that Michi- House Bill 5906, spon- Capitol trative services contracts,” Krause riod in 2008 of $50.5 million. gan utilities must get from re- sored by Dan Scripps, Briefings Bills would let said. “They are price competitive in However, Blue Cross made up newable sources. D-Leland and House the large self-funded accounts. Com- for the underwriting losses with Bills introduced last week Bill 5907, sponsored by local taxes buy land panies that have multistate loca- net investment gain of $228.9 mil- would build on the current re- Pam Byrnes, D-Chelsea, Bills that would allow tions have to go with (national) com- lion in the third quarter 2009 com- quirement that 10 percent of util- were hailed by environ- municipalities and mercial carriers or Blue Cross.” pared with $158.8 million for the ities’ electricity come from re- mental groups and oth- their brownfield rede- Blue Cross also increased mem- same period in 2008. newable sources by 2015 and er interests who said velopment authorities bers in existing groups, including Jay Greene: (313) 446-0325, establish a 20 percent renewable the legislation would to use tax increment Penske Automotive Group, Guardian [email protected] portfolio standard by 2020 and a help Michigan compete revenues to assemble for jobs-producing in- Amy Lane and acquire land are vestment by renewable- moving forward in the Don’t Miss the Area’s PREMIER HR Conference energy companies. Legislature. “Raising Michigan’s renew- Municipalities and authorities able energy standard will help Conference Sponsors could generally use local tax dol- make our state a leader in one of lars, but not state school operat- the fastest-growing sectors in to- ing taxes, to purchase and clear ti- day’s economy,” said Gayle tle for properties for economic Miller, legislative director of the development purposes. The bills Michigan chapter of the Sierra are designed to provide an ability Club, in a news release. similar to that given to land But CMS Energy Corp. and DTE banks. Energy Co. say Michigan’s current House Bill 5566, sponsored by standard, enacted in 2008 law, Robert Jones, D-Kalamazoo, last needs time to work. week passed the House in a 100-7 Both companies are moving vote, while Senate Bill 492, spon- ahead with substantial invest- sored by Tom George, R-Kalama- ments in such areas as wind en- zoo, was approved by a Senate ergy. committee. “Our position on that legisla- tion is that we are opposed to the bills that are being proposed,” Short takes said Len Singer, senior special- ist, external communications at Ⅲ The state Senate passed bills DTE. that would eliminate retirement “We believe that it’s prema- health care benefits for lawmak- ture at this point to be expanding ers and other state officials elect- on the renewable portfolio stan- ed on or after Nov. 1. dard, until we better understand Current law provides for law- A full day of innovative HR solutions featuring Keynote Speakers our ability to achieve the 10 per- makers, after six years of service, Chester Elton and Gerard Van Grinsven, and eight insightful cent goal by 2015, particularly to qualify for free lifetime health considering the revenue con- care benefits upon reaching age Breakout Sessions.You don’t want to miss it! straints ... in the 2008 legisla- 55. tion.” Ⅲ Former state representative Member $185; Non-Member $215 Jeff Holyfield, director of news and Garden City Mayor Jim Plakas DEADLINE FOR REGISTRATION: MARCH 12, 2010 and information at CMS, said has been appointed to the Michi- “the existing standard was set af- gan Gaming Control Board by Gov. March 17, 2010 ter nearly two years of discus- Jennifer Granholm. sion, analysis and debate, and it’s Prior to Plakas’ appointment, Rock Financial Showplace working.” the five-seat board had just three Novi, Michigan He said the 10 percent was a members, preventing the issue of level arrived at that balanced any new gaming licenses — the need to encourage renewable which under Michigan law re- For more information and to register, visit www.ASEonline.org energy development, with quires four votes. 20100301-NEWS--0027-NAT-CCI-CD_-- 2/26/2010 6:27 PM Page 1

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 27 High schools: Plans get $13M kickoff ■ From Page 1 Entertaining Part of the plan for the Michigan Academy’s commitment to gradu- Future Schools or “high school ac- ate 90 percent of its students and a group? celerator” project is to launch it Students should be have 90 percent of graduates go on nationally after it takes root in De- “ to college. We’ve got the ticket. troit “so that national thought able to graduate and Michigan Future Schools also leaders understand there’s inno- will have dedicated counselors Complimentary vation in Detroit, or that we’re fer- go straight into helping its graduates stay in col- concierge planning. tile for investment and fertile for lege. Entertainment, events, meetings and more. reform,” Allen said. college-level courses. Just as the Michigan Future Michigan Future has committed Schools governing council will the first grant of $850,000 to Detroit That is the bar we hold its high schools to the student the Edison Public School Academy in De- would like to set. achievement goals, University cultural troit — led by Superintendent ” Prep’s primary supporter, philan- Ralph Bland — to expand its suc- thropist Robert Thompson, holds concierge cessful kindergarten through Ralph Bland, Detroit Edison its nonprofit operator New Urban eighth-grade offerings into a high Public School Academy Learning accountable, said New Ur- a program of the cultural alliance of southeastern michigan, school set to open this fall. ban Schools CEO Doug Ross. a 501(c)(3) organization Bland is working with the Engi- Michiganfuture.org/schools. Michigan Future Schools and neering Society of Detroit to design It will provide average grants of New Urban Learning “share exact- the new high school and its cur- about $800,000 to cover a year of ly the same mission,” he said. riculum. planning and three years of opera- “The only thing that matters is www.theculturalconcierge.org “Too much has been said about tion for new college-prep high graduating college-ready children 248.767.6731 [email protected] high schools being able to gradu- schools — not previously estab- and sending them off to college.” ate students, but those students lished, failing ones — whether Michigan Future Schools aligns Support arts and culture in 2010. still need remedial help,” Bland they are traditional public, char- with a broader citywide education said. ter, private or parochial. plan under development since last “Students should be able to The new high schools won’t be year by the collaborative Excellent graduate and go straight into col- required to locate in the city of De- Schools Detroit. lege-level courses. That is the bar troit, Glazer said. But they will Michigan Future, the four foun- we would like to set.” have to be located east of Tele- dations and New Urban Learning Michigan Future Schools also graph Road and south of 12 Mile are among its members. has made a $50,000 planning grant Road to be easily accessible to stu- One of the key strategies of the to the Detroit Public Schools to de- dents from Detroit. citywide education plan, expected velop a proposal for a new science- More than anything else, Michi- to be released March 11, calls for and medicine-themed high school gan Future Schools will be vetting the creation of 70 new college prep that would open in 2011, Glazer for passion, commitment and com- high schools in Detroit, said said. petence in the educators who are William Hanson, director of com- Michigan Future plans to fund going to lead the new high schools, munications and technology at two other high schools in 2011 and Glazer said. Skillman. is taking applications through Achievement requirements are Sherri Welch: (313) 446-1694, April 1 at its Web site, www. similar to University Preparatory [email protected]

Marygrove: Athletics draw students ■ From Page 3

Fike said by expanding course lion budget before 2005 that was in the perceptions about golf as a and athletic offerings, Marygrove the red. sport that has traditionally not has been able to attract students “It’s been a great model for us, provided a lot of access to urban from areas beyond its traditional and we’re glad that other small pri- youth. This program — both the market that has predominantly vate colleges are replicating this,” partnership with Midnight Golf been Southeast Michigan. Docking said. and the program being here at a Adrian College President Jeffery Ed Blews, president of the Asso- college in Detroit that serves ur- Docking said his ciation of Independent Colleges and ban youth — is bucking that college experi- Universities of Michigan, said a num- trend.” enced similar ber independent colleges have ex- Ryan Beene: (313) 446-0315, results after it panded athletic offerings in recent [email protected] launched a new years, both intercollegiate and in- intercollegiate tramural athletics. men’s ice hock- He said the primary factor draw- ey team about ing students to smaller indepen- five years ago. dent colleges is still academics, but CRAIN’S CALLS FOR Since creat- athletics do add another dimen- ing the hockey sion to a college. UNDER 40 NOMINATIONS program, Adri- Docking “Offering students a variety of Crain’s Detroit Business is seeking an College has ballooned from athletic opportunities — intercol- nominations for the 2010 class of about 850 students to more than legiate and everything in between 40 under 40, which 1,600 this year, with an average — it does become an additional recognizes young achievers based on freshmen class of about 500 com- draw for students to the campus,” factors such as pared with the average of about he said. financial impact and 260 prior to the hockey program. Marygrove will be sharing the civic and community Docking estimates that last year golf practice facility with Midnight leadership. about 150 freshmen enrolled in the Golf, a Detroit-based youth devel- Winners will be profiled college who are involved in men’s opment and college readiness pro- in the Oct. 4 issue, hockey, women’s hockey, two gram that works with 140 students and Crain’s will flights of ACHA club hockey and per year, mostly seniors in the De- celebrate their achievements at an women’s synchronized ice skating. troit Public Schools, to develop golf Oct. 28 awards event. The hockey team was the center and life skills. To be eligible, nominees must be of a business plan to grow the col- Midnight Golf will use Mary- under age 40 as of Oct. 4, 2009. lege. grove’s new two-sided driving For sponsorship opportunities, With launching the program, range, putting green, sand traps please call (313) 446-6052. the college built a $6.5 million ice and four short-distance practice Nominations must be received by arena funded by gifts; and because holes twice weekly, saving the April 5. Visit www.crainsdetroit.com/nominate of higher tuition and room-and- high school program the trip to a to fill out the online form. board revenue from the increased driving range in Southfield. Questions? Contact Jennette student influx, the college’s budget “That’s what we love about this Smith, assistant managing editor, is now about $48 million and is in facility,” Fike said. at [email protected] or (313) the black, compared to a $23 mil- “It confronts head-on many of 446-1622. 20100301-NEWS--0028-NAT-CCI-CD_-- 2/26/2010 5:16 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS March 1, 2010 Ilitches’ hiring of Wilson points toward arena effort

BY BILL SHEA Chris Ilitch, chuckling. He is presi- that’s critical of public investment the Ilitches to Detroit’s future and CRAIN’S DETROIT BUSINESS dent of Detroit-based Ilitch Holdings in stadiums. redevelopment is well known,” Inc., which oversees the various The Palace was built entirely said Mark Rosentraub, a professor Last week, the Ilitch sports and companies that make up the busi- with private money by majority of sports management at the Uni- entertainment empire announced ness, sports and entertainment owner Bill Davidson, whose death versity of Michigan. “If an arena two major hirings: Johnny Damon empire assembled by his parents, last March set in motion Wilson’s could be built that anchored a new to play left field for the Detroit Little Caesar Enterprises Inc. decision to leave Palace Sports. downtown neighborhood, as was Tigers and Tom Wilson to be lead founders Mike and Marian Ilitch. This time, it’s likely that a new done in Columbus, Washington new business ventures — which Evidence suggests that the Il- Red Wings arena would involve D.C., Los Angeles, and that is be- collectively saw revenue of $2.1 bil- itches are tacitly signaling their some level of public financing — a ing planned for Edmonton, this lion last year. intentions behind closed doors, al- dicey political proposition in a fi- could be the exact sort of shot in Damon’s job is to get the Tigers though they say no decisions have nancially stricken city and reces- the arm the city needs.” back to the World Series, but Wil- been reached. sion-mired metro Speculation is son may have the greater chal- Chris Ilitch said he’s briefed all region, and with that a new hockey lenge. of the new City Council members banks loathe to (An arena) arena would be Through a to-be-named new en- about the company and its plans — lend money. “ built on Ilitch- tity, he will command the Ilitch including some discussion of the A new hockey could be the exact owned land in the family’s likely effort to finance and Red Wings’ venue situation. venue is expected Foxtown area or construct a new downtown arena DAVE REGINEK/COURTESY OF ILITCH HOLDINGS Detroit Mayor Dave Bing’s of- to cost $300 million sort of shot in the between Grand for the Detroit Red Wings, one possi- Tom Wilson fields questions Tuesday fice confirmed that he has been to $400 million. River and Cass bly built jointly with his former at a press conference about his new briefed on the arena situation. Wil- The Pittsburgh Pen- south of I-75. position with the Ilitch sports empire. arm the city employer, Auburn Hills-based son said Bing — who played for the guins, who edged Chris Ilitch ac- Palace Sports & Entertainment and Pistons from 1966 to 1975 as part of the Red Wings in needs. knowledged that the Detroit Pistons. grades — cost figures floated range a Hall of Fame basketball career — the Stanley Cup fi- ” the family has ac- Almost all of the questions dur- from $10 million to $150 million for has been a friend for more than 20 nals last June, Mark Rosentraub, quired land but ing the press conference introduc- a total facelift. years. open next season University of Michigan declined to say if ing Wilson on Tuesday were a The Ilitches’ Olympia Entertain- Wayne County Executive Bob at the $321 million, enough has been variation on one theme: Does his ment venue management business Ficano confirmed previously that 18,087-seat Consol Energy Center gathered to build a new arena. hiring signal the Ilitches’ inten- has been negotiating a new lease he’s had talks with the Ilitches after 48 years at Mellon Arena. Navigating the politics of De- tion to build a replacement for with the city through its quasi- about a new arena and financing. Consol has 66 suites. troit and Wayne County also will city-owned Joe Louis Arena, public Detroit Economic Growth Corp. If the Ilitches finalize a decision The Ilitches could choose to fol- be quite different than dealing where the Wings have played since A new lease, for a shorter term, to build a new facility, alone or low their previous venue path: with the Auburn Hills City Coun- 1979? likely would contain language that with the Pistons, Wilson will enter Comerica Park, home to the Mike cil, Wilson admitted. The Ilitches declined to renew allows the team an easy exit. a political landscape quite differ- Ilitch-owned Tigers, opened in “It’s a new experience for me,” the current lease last June, trig- The Ilitches won’t comment ent from anything he’s experi- April 2000 at a cost of $300 million he said. In coming days and weeks, gering the talks for a new agree- specifically on either the lease or a enced. He has orchestrated an are- financed by Ilitch, the city, Wayne he’ll meet with the Ilitches to pri- ment. However, they’ve said new facility, or on speculation that na, however. County and corporate investors. Il- oritize more than 60 ideas and ini- they’re also performing due dili- the Red Wings could play tem- He drew up on a paper napkin the itch paid $185 million of the cost of tiatives, he said. gence on possible construction of a porarily at the Palace of Auburn basic concept of the multi-con- the stadium, owned by the Detroit- Andy Appleby, a former senior new arena, and they’ve acquired Hills or even Ford Field. course Palace of Auburn Hills, with Wayne County Stadium Authority and vice president at Palace Sports un- land in the city to that end. It’s also Three messages left for DEGC its 180 suites both atop and at mi- subleased to the team. der Wilson and now owner of a believed that at least preliminary President George Jackson were dlevel, and then oversaw its $90 mil- Forbes.com valued the Red sports marketing firm in plans exist on paper for a new not returned. lion birth in 1988. That success, and Wings at $337 million in Novem- Rochester that might be interested venue. Wilson has been given the au- his subsequent stewardship of ber, fourth in the 30-team National in buying the Pistons, said the Il- Justification for new sports and thority over the lease negotiations, Palace Sports and its other venues, Hockey League. The financial news itches hired the right guy. entertainment arenas is that they so he can lead the talks himself or earned him praise within the indus- site also put a $1.4 billion worth on “Tom makes the Ilitch organiza- can generate new revenue streams continue to have Dana Warg and try and got him his new job. Mike Ilitch, who bought the Wings tion better and even more strong to from modern luxury suites, corpo- others continue to head the discus- “I’ve assumed all along that the for $8 million in 1982 from former pull something off like (building a rate sponsorships and naming sions. Ilitches will at least try for a new owner Bruce Norris. new arena),” he said. “Tom is a rights deals. There’s also little ar- If the Red Wings and the city facility — you can’t get it if you Sports industry watchers think wonderfully talented guy and really gument that Joe Louis, built by the don’t reach a new deal by June 1, don’t ask, right? — so Wilson’s hir- Wilson is the right choice for an one of the very best executives in city for $57 million to keep the when the current lease expires, ing is just more evidence for what I arena effort. sports. He was the father of modern- Wings from following the Pistons the hockey team isn’t expected to already expected,” said Neil de- “Tom Wilson has the experience day sports team marketing.” and Detroit Lions to the suburbs, is be turned out into the street. Mause, author of Field of Schemes to ensure that an arena project is Bill Shea: (313) 446-1626, aging and needs repairs and up- “Do I look worried?” asked and a Web site of the same name successful, and the commitment of [email protected]

Pistons: Investment consortium may seek to purchase team ■ From Page 1 pleby said. He cautioned that it’s managing partner of Predators mond Jaxx minor-league baseball for less than the Forbes estimate. Appleby worked at Palace still very early and a list of poten- Holdings L.L.C., which owns hock- team in Jackson, Tenn., and also is Tom Wilson, who left Palace Sports from 1986 to 1998, leaving as tial teams is still being assembled ey’s Nashville Predators. His money managing director and president Sports after 32 years to join De- a senior vice president to found for consideration. comes from the 2007 sale of med- of Calgary-based Prairie Merchant troit-based Ilitch Holdings Inc. last General Sports. The investment group is known ical waste handler Commodore Med- Corp., which invests in energy, week, said previously that a half- General to include these deep-pocket ical Services, which he founded. agriculture, real estate, sports and dozen groups had expressed inter- Sports special- names: Ⅲ Bill Luby, founding partner of entertainment industries. est in the Pistons. He didn’t identi- izes in consult- Ⅲ Jeff Mallett, who made his for- New York-based private equity firm It’s believed there are at least fy any of them. ing, team man- tune as president and COO of Ya- Seaport Capital, which invests in me- two or three more investors in the The Ilitch organization, which agement, hoo Inc. from 1995 to 2002 and is dia, communications and business- Derby County consortium, which includes the Detroit Red Wings and marketing, principal owner of the San Francis- and information-services compa- would likely be the same group the Detroit Tigers, has declined to sponsorships co Giants among numerous invest- nies. One of the investments is in that would bid on the Pistons. Ap- speculate on rumors it might be in- and has synthet- ments. He became principal in- Mandalay Baseball Properties L.L.C., pleby declined to discuss the other terested in buying the Pistons or ic turf and nam- vestor in the Derby County which owns several minor-league investors, but they have been in- cooperating with the team on ing-rights divi- Appleby franchise in March 2009 and is an baseball teams, including the Detroit dentified by the British press in building a joint arena downtown. sions. investor in the new Major League Tigers’ Double-A affiliate the Erie coverage of Derby County. Chris Ilitch, president of Ilitch “After owning a major league Soccer expansion team that begins SeaWolves. He’s a former managing Karen Davidson inherited the Holdings, also did not rule out any team for over two years now, I’m play next year in Vancouver. director at Chase Capital. Pistons when her husband, of the deals. more cautious,” he said. “That Ⅲ Tom Ricketts, co-owner and Ⅲ Jeff Martinovich, chairman and Guardian Industries Inc. Chairman Appleby previously was inter- doesn’t mean I haven’t loved every chairman of the Chicago Cubs, CEO of Newport News, Va.-based Bill Davidson, died last March. ested in buying the St. Louis Blues minute of owning that team.” which his family bought in Octo- wealth management consultants She said in January that she’s in- and in bringing a minor-league He said that if given the chance ber for $845 million. He’s CEO of MICG Investment Management L.L.C. terested in selling the team, valued baseball team to suburban Detroit, he would still have bought Derby Chicago investment bank Incapital Ⅲ W. Brett Wilson, co-founder of by Forbes.com at $480 million, with deals that didn’t bear fruit. His County, which has struggled on L.L.C. and sits on the board of TD Canada’s FirstEnergy Capital Corp., a or separately from Palace Sports & company did own the Fort Wayne the field but regularly draws Ameritrade Holding Corp. brokerage firm in the oil and gas Entertainment, the venue manage- Wizards, a Class A minor-league crowds of more than 30,000. Ⅲ Dave Freeman, founder and sector. He’s retired from the firm ment company. baseball affiliate of the San Diego “We’ve learned a lot,” he said. CEO of Nashville-based invest- but remains non-executive chair- Sports industry insiders have Padres, for several seasons until Bill Shea: (313) 446-1626, ment firm 36 Venture Capital and man. He owns the West Tenn Dia- said they expect the Pistons to sell selling the team in 2006. [email protected] 20100301-NEWS--0029-NAT-CCI-CD_-- 2/26/2010 6:23 PM Page 1

March 1, 2010 CRAIN’S DETROIT BUSINESS Page 29 Budget: Concern is federal help not long-term fix www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- dealing with the state’s chronic health care sector,” Citizens Re- clude changes in school employee Association, officials are talking to 0460 or [email protected] imbalance between spending and search said. pension benefits, correctional poli- the state’s congressional delega- MANAGING EDITOR Andy Chapelle, (313) 446- 0402 or [email protected] revenue. “Increasing health care costs cy steps that would reduce prison tion and working with their na- ASSISTANT MANAGING EDITOR/FOCUS Jennette In an analysis released last are driving much of the spending populations and state employee-re- tional organization to lobby for Smith, (313) 446-1622 or [email protected] ENTREPRENEURSHIP EDITOR Michelle Darwish, week, the nonpartisan Citizens Re- pressures facing the state, in both lated savings from areas that in- passage of the FMAP extension. (313) 446-1621 or [email protected] search Council of Michigan said that the general and school aid fund clude requiring employees to pick Absent the federal money that is COPY DESK CHIEF Gary Piatek, (313) 446-0357 while some of Granholm’s propos- budgets. While adding services to up more of the cost of retirement essential to Granholm’s Medicaid or [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) als “grapple with aspects” of a the tax base will increase the benefits. budget, the group is worried there 446-1608 or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or structural deficit problem, other growth rate of Michigan’s sales However, “the clearest example could be further cuts to Medicaid [email protected] solutions “are instead aimed at tax, the resultant rate will likely to of a short-term budget fix” that providers’ reimbursements or re- WEB EDITOR Christine Lasek, (313) 446-0473, short-term balance.” continue to trail the growth in does not address underlying struc- ductions in Medicaid eligibility or [email protected] WEB DEVELOPER Steve Williams, (313) 446- But it’s also not realistic to ex- state health care costs,” the coun- tural problems, is the federal Med- optional services that could de- 6059, [email protected] pect one year’s budget to eliminate cil said. icaid assumption, Citizens Re- crease Medicaid patients’ access to EDITORIAL SUPPORT Robertta Reiff (313) 446- 0419, YahNica Crawford, (313) 446-0329 a problem that’s existed for more Granholm proposed the tax on search said. primary care physicians and send NEWSROOM (313) 446-0329, FAX (313) 446- than a decade, said Craig Thiel, consumer services as a way to In the state general fund, nearly them to emergency rooms. 1687 TIP LINE (313) 446-6766 the council’s director of state af- modernize what she said is an out- half of a projected $1.09 billion Granholm’s general fund budget REPORTERS also relies on an additional Ryan Beene: Covers auto suppliers, steel, higher fairs. dated tax structure and provide a funding gap would be closed if the education and Livingston and Washtenaw The council said that while stable source of funding for K-12 federal government grants an ad- $133 million in savings that would counties. (313) 446-0315 or [email protected] Granholm’s fiscal 2011 budget con- education. ditional six months of the en- come from a 3 percent physician Daniel Duggan: Covers retail, real estate and hospitality. (313) 446-0414 or tains some elements that “are mer- But the tax, which faces signifi- hanced federal match for Medic- tax — an issue that faces an uphill [email protected] itorious from the vantage point of cant business opposition, is also aid, or FMAP, assistance. battle in the Legislature. Jay Greene: Covers health care, insurance and the environment. (313) 446-0325 or providing long-term stability to the main assumption to address a The federal stimulus package al- The Michigan State Medical Soci- [email protected]. the state budget, many have expe- School Aid Fund budget shortfall ready provides for about $208 mil- ety and the Michigan Osteopathic As- Chad Halcom: Covers law, non-automotive sociation oppose the proposal and manufacturing, defense contracting and Oakland rienced strong opposition because that will require further cuts in ed- lion in enhanced FMAP to states and Macomb counties. (313) 446-6796 or they entail increasing taxes or cut- ucation equating to a $255 per- for one quarter of fiscal 2011. are urging lawmakers to reject an [email protected]. ting services.” pupil reduction. Citizens Research said that the estimated $300 million tax that Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or Overall, the organization gives Kerry Birmingham, media rela- “chief problem associated with this they said would harm the state’s [email protected]. Granholm’s budget a mixed re- tions specialist at the Michigan Edu- (FMAP) assumption is to postpone, health care system and lead fewer Nancy Kaffer: Covers small business, the city of Detroit, Wayne County government. (313) 446- view for addressing the state’s cation Association, said lowering until fiscal year 2012, crafting struc- doctors to practice in Michigan. 0412 or [email protected]. structural budget deficit. the sales tax rate to 5.5 percent and tural solutions totaling $700 million State Budget Director Bob Bill Shea: Covers media, advertising and marketing, entertainment, the business of sports, For example, the council points expanding it to services is “a good in one of the state’s largest general Emerson has said the tax would and transportation. (313) 446-1626 or out her proposal to extend Michi- first step” toward providing stable fund budget items.” bring in $527 million in additional [email protected]. gan’s sales tax to consumer ser- funding for schools. She said The nation’s governors and a federal money for Medicaid, and Nathan Skid: Multimedia reporter. Also covers the food industry. (313) 446-1654, [email protected]. vices would bring in revenue to K- schools cannot take “another host of interest groups are urging would increase state reimburse- Sherri Begin Welch: Covers nonprofits and 12 schools from the state’s round of really devastating cuts.” Congress to extend the assistance, ment rates to Medicaid physicians services. (313) 446-1694 or [email protected] fastest-growing segment of the Beyond the services tax, other with many states like Michigan in- by 80 percent and bring reimburse- LANSING BUREAU Amy Lane: Covers business issues at the Capitol, economy. budget components that Citizens cluding the FMAP extension in ments up to Medicare levels. telecommunications and utilities. (517) 371- However, Granholm’s proposal Research said take aim at Michi- their budgets. Amy Lane: (517) 371-5355, 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. excludes “the rapidly growing gan’s structural challenges in- At the Michigan Health & Hospital [email protected] ADVERTISING

ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Jeff Anderson, Matthew J. HEALTH CARE HEROES Langan, Lori Tournay Liggett, Tamara Rokowski, Industrial park: Is plan out of date? Kimberly Ronan, Cheryl Rothe, Dale Smolinski Crain’s Detroit Business is CLASSIFIED SALES (313)-446-0351 ■ From Page 3 seeking nominations for Health MARKETING MANAGER Irma Clark Care MULTIMEDIA MANAGER Alan Baker, (313) 446- extensive cleanup to remove 1,500 the properties but said that negoti- fice of Grubb & Ellis, said of the pro- 0416 or [email protected] Heroes, a EVENTS MANAGER Nicole LaPointe tires, furniture, boats and other ations are a better way to obtain ject. “They rolled it out as a renais- special MARKETING ARTIST Sylvia Kolaski trash that had been illegally land. sance zone, the economic incen- report on SALES SUPPORT Suzanne Janik, YahNica Crawford dumped on the property. Eminent domain hasn’t served tives were there, the automotive health CIRCULATION Candice Yopp, Manager. The EDC has spent $18.9 million the project well in the past. By the industry was stable, and there was care professionals that will run MARKETING COORDINATOR Kim Winkler in the Aug. 9 issue. PRODUCTION MANAGER Wendy Kobylarz over the past 10 years at the site, mid-2000s, the city had acquired healthy demand for space in the PRODUCTION SUPERVISOR Larry Williams, including property acquisition about 60 percent of the land at the urban area. Well, fast forward to The program will honor top-notch (313) 446-0450 costs, of a budgeted $37 million, site, Goodwin said, but an error in today. Because of huge amounts of medical innovators and patient CUSTOMER SERVICE advocates — the inspiring Long said. the process meant property own- vacancy and a significantly differ- MAIN NUMBER: Call (888) 909-9111 or write Just north of I-94, bounded by ers had to be renotified that the ent automotive industry, the de- leaders who bring new meaning [email protected] to the word “dedication” through SUBSCRIPTIONS $59 one year, $98 two years. Mt. Elliott to the west, Miller to the parcels were subject to tax rever- mand for space just isn’t there Out of state, $79 one year, $138 for two years. their efforts to save lives or Outside U.S.A., add $48 per year to out-of-state south, Huber and Winfield to the sion. That took about a year and a right now.” improve access to care. rate for surface mail. Call (313) 446-0450 or north and St. Cyril to the east, the half. Labes said that industrial va- (888) 909-9111. Winners will be chosen in five SINGLE COPIES: (888) 909-9111. site was targeted for development And state laws have changed, re- cancy rates are the highest they’ve categories: REPRINTS: (800) 290-5460, ext. 125; (717) 399- as an industrial park in the 1990s, stricting the circumstances in been in his 23-year career and that 1900, ext. 125; or ashley.zander@theygsgroup Ⅲ Corporate achievement in .com. said Malik Goodwin, director of which municipalities can use emi- rental rates and sales prices are at health care — Honors a TO FIND A DATE A STORY WAS PUBLISHED: project management at the DEGC, nent domain. a 23-year low. company which has created an (313) 446-0367 or e-mail [email protected]. which provides support services to Acquisition of the remaining “Right now, it’s at the point innovative health benefits plan CRAIN’S DETROIT BUSINESS IS PUBLISHED BY the EDC and handles property ac- parcels, which Goodwin said he where you couldn’t even give the or has solved a problem in CRAIN COMMUNICATIONS INC. quisition for the site. has targeted for completion this land for free to a developer and health care administration. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain The site is inside a renaissance year, will allow the EDC and they could afford to spec a build- Ⅲ Advancements in health care SECRETARY Merrilee Crain zone, set to expire in 2017, which DEGC to market the site more ef- ing,” he said. “Today’s rents are so — Honors a company or TREASURER Mary Kay Crain individual responsible for a Executive Vice President/Operations eliminates many taxes for busi- fectively. low that it can’t justify the costs of William A. Morrow nesses within the project bound- “Without full control, we cannot new construction, even excluding discovery or for developing a Group Vice President/Technology, aries. assemble the sizeable parcels of the cost of the land.” new procedure, device or Manufacturing, Circulation service that can save lives or Robert C. Adams Long said that the recent pur- land we need to market that area Labes said that it’s possible the Vice President/Production & Manufacturing improve quality of life. Dave Kamis chase of the old Cooper School, lo- to users who might be looking for market will rebound, but said he Ⅲ Physician — Honors a Chief Information Officer cated in the project area, is a sign larger tracts of land,” he said. can’t predict when that will occur. Paul Dalpiaz physician whose performance is Corporate Circulation/Audience Development of progress. But roughly 130 pri- “We’re talking about end-users Mallett pointed to the abun- considered exemplary. Director vately owned parcels scattered that, for the most part, would not dance of vacant land in Detroit — a Kathy Henry Ⅲ Allied health — Honors an G.D. Crain Jr. Founder (1885-1973) across the site must still be ac- have as tough a time if they were survey recently completed by Data individual from nursing or allied Mrs. G.D. Crain Jr. Chairman (1911-1996) quired, a process Goodwin said is scouting suburban locations. But Driven Detroit found that one in health fields deemed exemplary EDITORIAL & BUSINESS OFFICES: complicated. in the city, that’s really the num- three lots in the city is vacant or by patients and peers. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 The private parcels, Goodwin ber-one thing that’s keeping us occupied by an abandoned home Ⅲ Trustee — Honors leadership Cable address: TWX 248-221-5122 AUTNEW DET said, are 30-by-100-foot former resi- from being competitive, and it’s — the condition of the industrial and distinguished service by a CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the dential lots. stymieing our marketing strate- real estate market and Mayor health care trustee. third week of January, a special issue the fourth “If you can imagine having a gy.” Dave Bing’s mandate that the city week of August, and no issue the third week of A panel of health care judges December by Crain Communications Inc. at 1155 120-acre parcel that’s ready to go As property acquisition has must shrink to survive. will choose the winners. Visit Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing and we’ve got a 30-by-100-foot lot in lagged, the industrial real estate “Let’s call a 4-H club and say, www.crainsdetroit.com/nominat offices. POSTMASTER: Send address changes to the middle of it, you can imagine market has changed. ‘Plant some corn,’ ” Mallett said. e to submit a nomination. The CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- the level of frustration,” he said. “Ten years ago it was an excel- “There is no one coming to an I-94 deadline is May 10. Questions? 9732. GST # 136760444. Printed in U.S.A. Goodwin said last year that the lent idea, an excellent concept and industrial park.” Contact Jennette Smith at Entire contents copyright 2010 by Crain (313) 446-1622 or Communications Inc. All rights reserved. Detroit City Council approved the very viable,” Dan Labes, a senior Nancy Kaffer: (313) 446-0412, Reproduction or use of editorial content in any [email protected]. manner without permission is strictly prohibited. use of eminent domain to acquire vice president at the Southfield of- [email protected]. 20100301-NEWS--0030-NAT-CCI-CD_-- 2/26/2010 6:31 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS March 1, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 20-26

also said the ex-mayor re- COMPANY NEWS ny, leader of the NAACP’s mains a Covisint employee. Suppliers’ Detroit chapter, withdrew On Friday, the arrest war- Ⅲ Miramar, Fla.-based from con- Prentice, rant was put on hold by the Spirit Airlines has an- tention to Michigan Court of Appeals. offices nounced it will begin sea- become sonal service — May 21- chair of the At what address will Nov. 10 — between Detroit national Vicari vie for searched in and Atlantic City. organiza- the address be held? Ⅲ Farmington Hills- tion after based AAM I L.L.C. has pur- he was not Troy Mayor Louise antitrust probe chased the headquarters of re-elected Schilling has canceled her the Handleman Co., which is Anthony to his seat Seldom Blues Thursday State of the City enso Corp. in South- liquidating. The $3 million on the board. Roslyn Brock, a address. field, Yazaki North sale was brokered by Farm- Maryland health care exec- att Prentice, CEO sic fish house.” The annual speech was D America Inc. in Can- ington Hills-based Friedman utive who spent 10 years in of Bingham Real estate sources said set to be held at the city’s ton, and Tokai Rika Group Real Estate Group, which health programs with the M Farms-based Matt other restaurateurs are community center — one of North America in Plymouth represented both the buyer W.K. Kellogg Foundation in Prentice Restaurant Group, looking at the space but no several city facilities threat- were searched by FBI and the seller. Battle Creek, was elected to and Joe Vicari, CEO of War- deal is imminent; GM is re- ened to be closed after a agents from the Detroit succeed Julian Bond. failed tax increase vote last ren-based Andiamo Restau- viewing options. field office Tuesday in con- Ⅲ The NCAA has accused Tuesday. rant Group, are both eyeing nection with an interna- ELECTIONS the University of Michigan of Hmmm ... perhaps the the former Seldom Blues tional antitrust investiga- Ⅲ Troy officials say the five potentially major rules Burgers won’t do? city is looking for a new lo- space in tion. A spokesperson with city will close its library, violations under coach Rich cation for the event? the Renais- Is a lavish lifestyle help- the U.S. Department of Jus- nature center, community Rodriguez, who will never- tice wouldn’t elaborate on sance Cen- ful, even crucial, if you’re center and museum and lay theless be back for a third ter. trying to sell software for the investigation. Denso Winning Futures looking off 47 police officers after season, AP reported. The Prentice Covisint, the Compuware said the search was not re- voters Tuesday rejected a allegations include failing said he and Corp. business unit that has for everyday heroes lated to the Toyota recall five-year, 1.9-mill tax in- to “promote an atmosphere investigations. Vicari each employed Kwame Kilpatrick Nonprofit Winning Futures crease, the Associated On Thursday, a European of compliance within the have a good for more than a year? is taking nominations for Press reported. chance of That’s what the ex-may- office of Southfield-based football program” and not Prentice its annual “Rare Everyday Voters in nearby Bloom- Lear Corp. was searched by making sure players were taking over or’s attorney, Daniel Hajji, Hero” awards. field Township approved a officials in connection with following NCAA rules, par- the space because they al- claimed in filings with an In its eleventh year, the 10-year, 1.3-mill public the widening international ticularly those limiting the ready have successful Re- appeals court last week. program honors Michigan safety millage. Voters in investigation. Lear declined time spent on practice and naissance Center restau- Hajji said Kilpatrick’s adults doing extraordinary the Chippewa Valley to specify the information football-related activities. rants. ability to make court-or- work in both their personal School District approved contained in the documents. UM has 90 days to respond. “It’s obviously prime dered restitution was im- and professional lives. an $89 million bond, while Ⅲ The Detroit Public space, and I’m sure other pacted by what he needs to Winning Futures is tak- Berkley residents rejected Schools is outsourcing bus people are interested, but I spend on would-be clients, ing nominations through a $168 million school bond. ON THE MOVE service for more than 22,300 would imagine Joe and I that they weren’t the types April 15 at www.winningfu- Ⅲ Macomb County Sher- students at an expected sav- would have an inside track,” you could take out for a tures.org under the “Rare Ⅲ John Cocciolone, presi- iff Mark Hackel announced ings of $49 million over five Prentice said. burger. Everyday Hero” tab. dent and CEO of Easter his candidacy to become Vicari said he is consid- Bill McGraw, the former The organization plans to Seals of Michigan Inc., has Macomb County’s first years, emergency financial ering splitting the space in Free Press reporter now di- host an awards ceremony in left the agency for undis- county executive. manager Robert Bobb said half and opening two con- rector of media relations at July. closed reasons. COO Brent The other officially an- Tuesday, AP reported. cepts. One would be Rojo Compuware, told Crain’s Wirth has been named act- nounced candidate is Antho- Ⅲ In his State of the Mexican Bistro; he wouldn’t that Compuware’s “policy ing CEO. ny Marrocco, county public County address Tuesday, divulge the other. on reimbursement is just BITS & PIECES Ⅲ Ken Matzick, CEO of works commissioner. Wayne County Executive “I am looking at some- like most other companies’ ■ Royal Oak-based William Ⅲ U.S. Rep. John Dingell, Robert Ficano touted $2 bil- thing that will be a big sur- Philanthropist and life — legitimate business ex- Beaumont D-Dearborn, announced he lion in new investment in prise to Detroit if it comes balance speaker Malaak penses are reimbursed.” Hospitals plans to run for re-election. the county, and said he is through,” Vicari said. Compton-Rock (wife of come- Karmanos told Paul W. since 2005 launching an effort to make Prentice said he has a dian Chris Rock) is the Smith on his WJR morning and an em- Wayne County a center for meeting with building own- keynote speaker at the Jack- show, after he hired Kil- ployee of LANSING autism research and treat- er General Motors today to ets for Jobs Inc. Red Carpet patrick last February, that the three- Ⅲ State Rep. Mark Mead- ment, and renewed his discuss the possibility of a Gala on March 25 at the he told him “if another shoe hospital ows, D-East Lansing, has commitment to creating an fish house in the space but Charles H. Wright Museum of drops, you understand you system for added a reduction in the “aerotropolis.” said it will not be a reitera- are not working here.” African American History. The Matzick 41 years, gross receipts tax in the Ⅲ A survey released by tion of Bloomfield Hills’ Apparently the Michigan nonprofit Jackets for Jobs has an- Michigan Business Tax base the Detroit Data Collaborative Northern Lakes Seafood Co. Department of Corrections’ re- Inc. provides career skills nounced he will retire on to his earlier proposal to says 23 percent of 343,849 “If the city had the sec- quest last week for a bench training and professional May 31, his 67th birthday. lower Michigan’s sales and residential parcels in the ond coming of Joe Muer’s, I warrant for Kilpatrick’s ar- clothing to economically dis- Gene Michalski, Beaumont’s use tax rates to 5 percent city are unimproved or think it would be extremely rest on probation violations advantaged individuals. For executive vice president and extend them to con- dangerous open lots. Ten successful,” Prentice said. did not meet the falling- more information or tickets, and COO, has been named sumer services, while elim- percent of residential units “Every great city has a clas- shoe standard. McGraw see www.jacketsforjobs.org. new CEO, effective June 1. inating the nearly 22 per- are vacant or possibly va- Ⅲ Steve Wilson, lead in- cent surcharge on the MBT. cant. But only a fraction of vestigative reporter at De- the city’s occupied housing troit’s OTHER NEWS is in poor or worse condi- WXYZ- tion. The survey can be Channel 7, Ⅲ U.S. Magistrate Judge found at detroitparcel announced Steven Pepe ordered former survey.org. BEST FROM THE BLOGS that his Kmart CEO Charles Conaway Ⅲ The Salvation Army East- to pay more than $10 mil- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS contract ern Michigan Division has re- wasn’t re- lion for misleading in- ceived word from the state vestors before the retail newed. that its donors will no Noticed among rapper’s gear Restaurateur helping Haiti chain filed for bankruptcy For more longer be able to take the Wilson protection in 2002, but de- details, Michigan food and shelter Bruce Egnater, who George Gjekaj, nied a request that would read Bill Shea’s blog at tax credit since it is pri- makes“ some of the most owner“ of Georgios Pizza have prevented Conaway well-respected tube and Pasta in downtown www.crainsdetroit marily a religious organi- from serving as an officer amps in the world, is a Rochester, is putting zation. The group said it .com/shea. or director at another pub- metro Detroit business up 5 percent of his was working to regain the Ⅲ Delphi Automotive L.L.P. lic company, AP reported. owner. … He’s got an profit ... to help CFO John Sheehan plans to tax credit. off-the-shelf line that’s suffering children in Ⅲ The Detroit Tigers said sold in major retail Haiti. leave the Troy-based sup- they’re adding eight more chains. And, apparently, plier to be the CFO at Pitts- promotional giveaways OBITUARIES he has the respect of ” burgh-area pharmaceutical and special events, totaling one Jay-Z. company Mylan Inc. on 31, for the upcoming sea- Ⅲ Kelvin Scott, director of Reporter Nancy Kaffer’s blog on the city of Detroit Reporter Nathan Skid’s Detroit-area restaurant blog April 1, where he will over- son to lure fans to Comerica the Michigan Department of and small business can be found ” can be found at www.crainsdetroit.com/skid see the company’s global fi- Civil Rights, died Feb. 20 of at www.crainsdetroit.com/kaffer Park. nance operations. Ⅲ The Rev. Wendell Antho- cancer. He was 47. DBpageAD.qxd 2/19/2010 10:24 AM Page 1

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