Foundations, City at Brink of Plan to Shrink Detroit

20100125-NEWS--0001-NAT-CCI-CD_-- 1/22/20106:21PMPage1 ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved torpedo 2009M&A,Page11. Bailouts, creditcrunch ‘Our focuswasonsurvival’: our impact?And,howdowe do weaccelerateandbroaden ways toengagebusinesses. new curricularofferingsand munity resourcestotarget student andbusinesscom- group willbuildonWalsh’s veloped, Langesaid,butthe the project. cently appointeddirectorof said ing Michiganbusinesses, the greatestimpactingrow- and opportunitieswillhave points” wherenewresources ing tofindthe“tipping local businessleaderswork- Walsh facultymembersand ject, thegroupwillconsistof business growthinMichigan. a programtohelpaccelerate Pages 14-15 Mergers andacquisitions, departments, Page6 Privatize building Firm’s pitchtogovernments: stands oncandidates way forcorporate,nonprofit Supreme Courtrulingclears prevent diseases,cutcosts Study callsonbiztohelp for sale? down –areonlythestrong Sales ofsmallbusinesses ‘tipping points’forgrowth Walsh programtoseek

NEWSPAPER www.crainsdetroit.com Vol.26,No.4 This JustIn Crain’s Finance Extra Inside Page 3 “The realquestionishow Details arestillbeingde- Called thePantheraPro- Walsh College Michelle Lange See ThisJustIn,Page2 List is developing , there- Detroit MayorDaveBingaccepts ment inkeyneighborhoods—if the citybyconsolidatinginvest- passes theprinciplesofshrinking lines ofalanduseplanthatencom- could havethebroad-brushout- Foundations, cityatbrinkofplantoshrink Detroit one ofthem,rep says But estatetaxisn’t reasons has her Davidson possibly sellthe estate taxes.Herspokesman, week. say?” shetoldreporterslast about themashewas. owned bysomeoneenthusiastic preference isthatthePistonsare among otherassetsfromherlate strong, considered Franchise Sellable: signs, Some seeearly Joint arena: Page 28 in charge? Guardian: I NSIDE In fourtosixmonths,Detroit Karen Davidson’sdecisionto But there’salsothequestionof “It’s Bill’sbaby.WhatcanI CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B Page 28 Page 29 Y B Who’s N Y ANCY B ILL Detroit Pistons hers, andher terest andnot husband’s in- team washer it’s becausethe publicly that why. question of the inevitable tate, hasraised $1 billiones- husband’s S K HEA AFFER She’s said , Forbes Pistons guardBenGordoninaction. Pistons at$480million. series oftrustsdesigned den forheirs. to reducethetaxbur- trusts andmethods also otherformsof falls. Thereare er potentialpit- dies buthasoth- the spouse the taxuntil which defers duction, ed maritalde- for anunlimit- tax lawsallow owe any. that shedoesn’t Marx Layne&Co. Hills PRandmarketingagency Michael LayneofFarmington JANUARY 25–31,2010 of thisyear. land useissuesinthefirstquarter had plannedtobeginstudying secretary, addingthatthemayor Edward Cardenas,Bing’spress the foundationcommunity, said cussions with preliminary dis- gaged in ficials areen- ministration of- priorities. Ad- one ofhistop ing thecityis gust thatresiz- Crain’s a plan. dation tofundthecreationofsuch an offerfromametroDetroitfoun- Even withacomplex Federal estate Bing told magazine hasvaluedthe COURTESY OFTHEDETROITPISTONS last Au- , saidonFriday Rapson on WednesdayatthePalaceofAuburnHills. Owner KarenDavidsonwatchestheDetroitPistons there’s eventuallyataxbillto children namedintheestate, to shieldherandthetwoadult $300 millionto$400million. pay —potentiallytothetuneof Davidson inheritedproperties DUANE BURLESON/THEASSOCIATEDPRESS what kindsofresourcesmight with theadministrationabout is One ofthethingswearetalking schools withoutalanduseplan. … comes huge,becauseyoucan’t site think aboutsitingschools be- land usestrategy.Whereyou comes important,becauseit’sa sudden howyoudolightrailbe- the city,”Rapsonsaid.“Soallofa a setofstrategiestoreconfigure very clearthathewantstopursue long-term strategies. is crucialtodevelopingviable fund theplan.Andalanduseplan Foundation president oftheTroy-based yond debate,saidRipRapson, but notcash,soshe’sselling A thirdpossibilityisthat the teamandrealestatehold- “I thinkthemayorhasbeen That thecitymustshrinkisbe- ings forliquidity. to knowbecause For now,it’simpossible specifics ofthetrusts Bill Davidson,who died atage86on See Pistons,Page28 , whichhasofferedto filed inOakland estate. March 13,wases- County Probate tions aboutthe Court arenot timated by ment onques- declined tocom- public. Layne Kresge cil onDisabilityandRehabilitation president ofthe bilitation specialist.Healsois renowned bioengineerandreha- Al-Turaiki, whoisaworld- in everystepthisproject,”said Brighton andwanttoinvolvethem Health Care Saudi CareforRehabilitationand Mohammed Al-Turaiki,CEOof 12-step treatmentapproach,said cess rate,clinicalcaremodeland because ofitsexpertise,highsuc- providers inEuropeandtheU.S. and largeraddictiontreatment chosen overothermorefamous al search,BrightonHospitalwas ment hospitalinRiyadh. building a250-bedaddictiontreat- Saudi Arabiancompanythatis term managementcontractwitha tent tobegindiscussionsonalong- Hospital Al-Turaiki Hospital Brighton contract with Saudis seek St. JohnHealthSystem “We aresoimpressedwith After anine-monthinternation- more complicatedthanthat.” in about24hours.Thisismuch cluster activities,wecoulddo that concentrate resourcesorwherewe we needisadrawingofwhere are strategies,”Rapsonsaid.“Ifall plan. developing anincrediblycomplex ning experts—justthefirststepin of localandoutsideurbanplan- would assembleacombinedteam cepts theoffer,foundation track.” and highlyprofessionalized they needtoputthatonaveryfast The firstfourtosixmonths “There arestrategies,andthere Rapson saidthatifthecityac- CRAIN’S DETROITBUSINESS B has signedaletterofin- Y in Riyadh. J AY Islamic WorldCoun- See Landuse,Page29 $2 acopy;$59year G Bertin-Epp See Saudis,Page26 REENE ’s Brighton . ® 20100125-NEWS--0002-NAT-CCI-CD_-- 1/22/2010 6:09 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 25, 2010

ture Capital Association. That was a portunity Forum on Feb. 23. P.C. to relinquish $500,000 and the has invested $3 million in a Mass- THIS JUST IN decline of 37 percent in dollars The 8 a.m.-12:30 p.m forum is use of his surname, according to a achusetts developer of nanotech- and a decline of 30 percent in the geared toward businesses in con- lawsuit filed Friday at Oakland nology products for solid state ■ From Page 1 number of deals. struction, landscaping and main- County Circuit Court against the lighting and displays. California was No. 1, with $8.9 tenance. firm and Managing Partner J. Dou- QD Vision Inc., in Watertown, grow Michigan business and jobs billion invested in 1,137 deals. It will offer opportunities to glas Peters and Partner David Chris- Mass., said the funding from Ann in second-stage companies?” — Tom Henderson learn about doing business with tensen. Arbor-based DTE Energy Ventures Lange said. the authority. For details, visit Charfoos, 73, left the firm in will support the company’s mar- The Panthera Project will seek www.MetroAirport.com. September to co-found a new ket expansion of nanomaterials to best practices that support such Okla. firm buys Titan Benefits — Nancy Kaffer firm, an association of counsel enable energy efficiency gains. growth areas as entrepreneur- Tulsa, Okla.-based Benefits based in the Penobscot Building. — Amy Lane ship and second-stage companies Technologies L.L.C., a benefits en- State’s construction backlog Charfoos & Christensen part- from universities and other rollment and dependent-verifica- ners have told Crain’s in the past Friendship Circle among leaders groups throughout the country to tion company, has acquired Titan more than 5 months, group says they would keep the firm name in see if they can be implemented Benefits Communications Inc. in reference to Charfoos’ late father, in Facebook nonprofit contest here. Royal Oak for an undisclosed Michigan has enough commer- Samuel Charfoos. The elder Char- As of late last week, a West Prior to joining Walsh, Lange amount. cial construction projects in the foos left the practice of law in 1978 Bloomfield Township-based non- was president of Silvertree Market- Titan had been facing capital pipeline to support 5.47 months of and died in 1995, according to the profit, Friendship Circle, was ing L.L.C., specializing in services challenges and needed new tech- work, according to the November lawsuit. Peters and Christensen among the top five finalists in a for growth companies, nonprof- nology and other resources, said figures released by the Washing- could not be reached for comment Facebook contest sponsored by J.P. its, and education. Lange also has David Brenner, owner and presi- ton, D.C.-based Associated Building Friday. Morgan Chase. held positions at General Motors dent of Titan. and Contractors. Michigan showed “If they are still using the name There are five Michigan non- and was managing consultant at Brenner now serves as divi- a year-over-year increase com- from his father, that’s news to Mr. profits in the contest, among 100 consulting firm The Zyman Group. sional president of the local office, pared to a 5.05 backlog in 2008. Charfoos, based on the records finalists, vying for a $1 million —Ryan Beene which is operating as Benefits The backlog figure is slightly we’re presenting in this case,” grant. Technologies. below the national average of 5.8. said attorney Marvin Shwedel of Friendship Circle, which pro- Titan employed 15 people and The figure is based on reporting Franklin-based Faintuck Shwedel & Michigan 19th in VC investments vides a village where special had gross sales of about $7.5 mil- from trades. Nationally, the Wolfram, who represents Char- needs youth can get real-world Investing in portfolio compa- lion last year, Brenner said, de- strongest sector is infrastruc- foos. experience, ranked No. 4 in votes nies by venture capital firms declining to give net revenue. ture, said ABC Chief Economist Charfoos alleges breach of con- cast as of Thursday. Others in the clined in 2009 in the U.S. and in Benefits Technologies now has Anirban Basu. tract and unjust enrichment in top 100: Mosaic Youth, Detroit; Michigan. more than 100 employees and pro- — Daniel Duggan the lawsuit. The complaint also Passlove Charity Foundation, Oke- Michigan ranked 19th among jected revenue of more than $25 alleges the firm has an unpaid mos; Sikhcess, West Bloomfield; states, with $130.6 million invest- million in 2010, he said. balance on an ongoing agreement and Hand by Hand Education Founda- ed in 33 companies, compared to — Sherri Welch Lawrence Charfoos sues former to pay Charfoos 25 percent in case its ranking of No. 15 in 2008, with referral fees. tion, Canton Township. Friday $251 million invested in 45 deals. firm over fees, use of name — Chad Halcom was the last day to vote. Nationally, $17.7 billion was in- Airport authority hosts Chase planned to announce the Attorney Lawrence Charfoos of vested in 2,795 deals in 2009, the $1 million winner Saturday and to forum for small businesses Detroit startup law firm Charfoos, lowest dollar total since 1997, ac- DTE unit invests $3M in nanotech award $100,000 each to the next Giovan & Birach L.L.P. wants his for- cording to a report by Pricewater- The Wayne County Airport Authori- top vote-getters. mer firm of Charfoos & Christensen A subsidiary of DTE Energy Co. houseCoopers and the National Ven- ty is holding a Small Business Op- — Sherri Welch Where’s the PANELISTS INCLUDE: John Balbach IS PLEASED TO HOST Technology Business Consultant Small Business Technology & Money? Development Center

Gregory S. Buck We’ll ask – and answer – President important questions: Leonard Capital Markets I Are lenders pulling back from Michigan? I What financing options do Brian Demkowicz, A forum for Michigan companies have? Managing Partner, How can Michigan create more? Huron Capital Partners LLC second-stage companies I How have some states created partnerships among that want to grow banks to make more loans? Mike Semanco, President, Wednesday Feb. 24 Hennessey Capital 7:30 - 10:30 a.m. PRESENTING SPONSOR MSU Management Education Center, Troy Rebecca Smith, President Eastern Michigan, Tickets: $50 each, Huntington Bank $45 each for groups of 5+ LOCATION SPONSOR $60 at the door NOT PICTURED To register please visit Paul Brown Manager www.regonline.com/2010secondstage1 Capital Markets Development please call 313-446-0300 with For sponsorship opportunities, contact Marla Downs at Michigan Economic Development Corp. questions and group reservations. 313.446.6052 or [email protected] 20100125-NEWS--0003-NAT-CCI-CD_-- 1/22/2010 6:20 PM Page 1

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 3 Sales of small businesses down Inside

Asking price, revenue up; median sale price slides BUSINESS SALE NUMBERS BizBuySell.com released the strong are for sale, said Mike Han- from $139,500 in 2008 to $127,500 BY NANCY KAFFER following 4Q 2009 sales figures on CRAIN’S DETROIT BUSINESS delsman, general manager of this year. Detroit’s small businesses: BizBuySell. “If I was asked to read between Ⅲ 16 Detroit businesses were Lycera drug research The average asking price for De- In 2009, 16 businesses in the De- the lines, I would say that busi- reported sold in 4Q 2009, troit-area small businesses for sale troit area were reported sold by nesses that are not doing well are compared to 28 in 2008. and development to stay in the fourth quarter of 2009 was BizBuySell.com, he said, com- not for sale,” Handelsman said. Ⅲ The median asking price rose to in Michigan. up, as was the revenue the busi- pared with 28 in 2008. The median “Businesses are struggling, and $159,450, from $152,500 in 2008. nesses were reporting, according asking price rose, from $152,500 in most businesses that are strug- Ⅲ Revenue reported by companies Q&A with execs, Page 4. to data collected by online listing 2008 to $159,450, and the amount of gling are not focused on exiting. for sale rose to $344,175, from service BizBuySell.com. revenue reported by companies for They’re focused on surviving. $287,790 in 2008. That’s not necessarily a good sale was up as well, from $287,790 Those who have revenue declines Ⅲ Median sale prices fell to sign — with a lower transactional in 2008 to $344,175 in 2009. $127,500, from $139,500 in 2008. Company index volume, it seems that only the But the median sale price fell, See Biz sales, Page 27 These organizations appear in this week’s Crain’s Detroit Business: Agree Realty ...... 6 Amherst Partners ...... 11 ArtServe Michigan ...... 25 Study: Better disease prevention programs needed Barron, Rosenberg, Mayoras & Mayoras ...... 28 Beringea ...... 16 Brighton Hospital ...... 1 Employers urged LEADING ILLNESSES Carlisle/Wortman Associates ...... 6 Center for Healthcare Research ...... 3 Among Michigan’s top 10 hospital discharges, There is a lot of health Clark Hill ...... 13 here are some that rank higher than national “ to help cut costs averages: care spending Cultural Alliance of Southeastern Michigan ...... 10 Percentage of total Detroit Neighborhood Forum ...... 29 BY JAY GREENE for things that hospital discharges Detroit Pistons ...... 1 CRAIN’S DETROIT BUSINESS Condition Michigan U.S. are clearly Detroit-Wayne County Stadium Authority ...... 28 A new study indicates that Michigan’s em- 2. Congestive heart failure 2.9 2.6 Dykema Gossett ...... 26 ployers and health care providers could do a 4. Coronary artery disease 2.9 2.4 preventable. Ford Foundation ...... 10 better job offering prevention and early detec- 5. Degenerative joint disease 2.6 2.1 ” Giarmarco Mullins Horton ...... 28 tion programs to reduce the state population’s 7. Mood disorders 2.2 2.0 Marianne Udow-Phillips, Guardian Industries ...... 28 higher-than-average numbers of hospital dis- 8. Irregular heartbeat 2.1 1.9 Center for Healthcare Honigman Miller Schwartz & Cohn ...... 26 charges for cardiovascular disease, depression Source: Center for Healthcare Research and Research and Transformation Huron Capital Partners ...... 12 and back disorders, according to Ann Arbor- Transformation Hydra Professionals ...... 13 based Center for Healthcare Research and Transfor- up Michigan’s health care KPMG ...... 17 mation. costs. In one of the first reviews of its kind in the “No. 1 in spending on hospital care is on “We have known for some Kresge Foundation ...... 1 nation on the cost of disease, the center ranked heart disease. We know a lot of heart disease is while that chronic illness is a Lycera ...... 4 the top 10 most frequent hospital discharges by caused by smoking and obesity. There is a lot driver of costs. This repre- Macomb County Chamber of Commerce ...... 9 diagnosis, gender and charges in Michigan and we can do to prevent cardiac admissions sents a significant change McKenna Associates ...... 6 compared those to national averages. through prevention,” Udow-Phillips said. where before we believed Michigan Campaign Finance Network ...... 26 The study is the second in a series of six issue Heart disease accounted for over $143 billion acute illness drove costs,” Michigan Chamber of Commerce ...... 3 briefs. The first brief, released in December, in health care spending in the U.S. and $4.2 bil- Simmer said. Michigan Council for Arts & Cultural Affairs . . . . . 25 showed that Michigan’s personal health spend- lion in Michigan in 2007, the center said. Total Udow-Phillips said the Michigan Manufacturers Association ...... 3 ing has been growing at a slower pace over the study could encourage em- health spending in the U.S. amounted to $2.2 Simmer Michigan Motion Picture Studios ...... 25 past 10 years than the U.S. average. trillion. ployers to reduce health care Michigan Nonprofit Association ...... 10 “There is a lot of health care spending for Dr. Tom Simmer, a center board member and costs by promoting employee assistance pro- things that are clearly preventable or where chief medical officer with Blue Cross Blue Shield grams and possibly adding wellness programs Oakland County Economic Development ...... 25 early intervention could make a difference,” of Michigan, said the study will help bring Palace Sports & Entertainment ...... 28 said center Director Marianne Udow-Phillips. awareness to chronic diseases that are driving See Prevention, Page 27 Performance Network Theatre ...... 10 Pricewaterhouse-Coopers ...... 11 Pulte Homes ...... 11 Renaissance Venture Capital Fund ...... 16 Royal Oak Business Brokers ...... 27 Towers Watson & Co...... 11 Biz, nonprofits can be bigger players in candidate ads United Solar Ovonic ...... 9 Universal Truckload Services ...... 16 BY CHAD HALCOM sion in Michigan law. business community if we can for ads produced by a candidate’s University of Michigan ...... 29 CRAIN’S DETROIT BUSINESS The ruling allows businesses speak directly into the elections of campaign committee or coordinat- Walsh College ...... 1 and nonprofits, such as the MMA, candidates who can bring job-cre- ing their messages with the cam- W.Y. Campbell ...... 12 Corporations and nonprofits to participate di- ating ideas and reforms to Michi- paign itself. could spend more money, send rectly in politi- gan. We are very interested in But businesses and corporations Zuma Coffee House ...... 22 more forceful election messages cal election learning more details,” he said. can now make “corporate indepen- and even help new political candi- races by making The high court’s 5-4 decision dent expenditures” to support or dates emerge as contenders for “independent overturns its own ruling in a 1990 oppose candidates on their own. Department index public office, in the wake of a new corporate ex- case brought by the Michigan Cham- “You’ll probably see the most BANKRUPTCIES ...... 25 U.S. Supreme Court ruling that eases penditures” ber of Commerce, which sought to spending like that from nonprofits restrictions on corporate spending with “express back a candidate for the Legisla- that are ideological, or small busi- BUSINESS DIARY ...... 24 in election campaigns. advocacy” for or ture in the 1980s. nesses — say, retailers in a shop- CALENDAR ...... 24 Mike Johnston, vice president of against a candi- The Supreme Court upheld the ping center who take a hit from CAPITOL BRIEFINGS...... 25 government affairs at the Michigan date. constitutionality of Michigan’s street construction and blame Johnston CAREERWORKS ...... 22 Manufacturers Association , said his Such expens- law in that case, but the majority their mayor or city council,” said CLASSIFIED ADS ...... 22 Lansing-based organization al- es were previously barred by a opinion last week overturned that Bob LaBrant, senior vice president ready has sought advice from its 1976 state campaign finance law. ruling. and general counsel at the Michi- KEITH CRAIN...... 8 attorneys at Detroit-based Clark Hill “We absolutely would consider The new ruling effectively gan Chamber. “Other companies OPINION ...... 8 plc about Citizens United v. Feder- doing that,” Johnston said. means corporations still can’t give may have other concerns.” OTHER VOICES ...... 8 al Elections Commission, which “It would be in the interests of “coordinated” support to a candi- PEOPLE ...... 23 strikes down a decades-old provi- improving the economy and the date, such as making media buys See Ads, Page 26 RUMBLINGS ...... 30 WEEK ON THE WEB ...... 30 Attention Ad Talent Tweet! THIS WEEK @ The deadline for Crain's marketing campaign 3,500 people are already getting instant updates from contest is Feb. 15. Win ad space in CDB or Ad CDB. Join their ranks and follow us on WWW.CRAINSDETROIT.COM Age. Details: www.crainsdetroit.com/adtalent Twitter! twitter.com/crainsdetroit 20100125-NEWS--0004-NAT-CCI-CD_-- 1/22/2010 6:02 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 25, 2010 Lycera CEO says drug R&D to stay in Michigan Go Green. BY TOM HENDERSON CRAIN’S DETROIT BUSINESS Yo u Last April, when capital mar- “ Green. kets were mostly closed, Plymouth locate where Township-based Lycera Corp. an- Learn how you can reduce building nounced that it had closed on a Se- you have the RSHUDWLQJFRVWVREWDLQ¿QDQFLQJ ries A venture capital round of IRUJUHHQUHWUR¿WVDQGLPSURYH $36 million. greatest That held up as the largest VC your workplace at our investment in the state in 2009 and chance to Project Green Institute one of the largest in state history. in Ann Arbor or online at JSVig.com. It wasn’t just the size of the round have that was impressive, but the brand- name national VCs that joined in on success. Contact Joe Vig to it — Arch Venture Partners, a Chica- ” schedule a consultation. go-based firm with almost $1.5 bil- NATHAN SKID/CRAIN’S DETROIT BUSINESS William Sibold, [email protected] lion under management; Clarus Ven- Chief Science Officer Gary Glick (left) and new CEO Lycera Corp. 313.477.1060 William Sibold at Lycera Corp. labs in Plymouth Township. www.jsvig.com tures, a Cambridge, Mass.-based firm with $1.2 billion; InterWest Part- get on with the process of drug discov- think startup, you picture kids just ners L.L.C. of Menlo Park, Calif., ery. out of school who want to do some- which has $2.8 billion; and Ann Ar- Glick: I’ve had to do pretty much thing. This was a seasoned team bor-based EDF Ventures, the state’s everything. This will allow me to that knew what to do and, more oldest VC firm, which provided focus on the science. important, what not to do. It was seed capital to help launch the com- great science and great people. But pany in 2006. Explain large molecule, small molecule, and the market advantages of it wasn’t just the people here. It • • This month, the company, a was the investors and the board of Commercial Residential Retail spinoff from the University of Michi- creating small-molecule drugs. Glick: Small molecules you can fit directors. It was an incredibly so- gan that is in animal trials for phisticated board that is second to small-molecule drugs to treat such into a pill. With large molecules, like proteins, you can’t. They can be none of any venture-backed com- autoimmune disorders as lupus, pany in the country. rheumatoid arthritis and psoria- 50 to 100 times bigger and they have • • There aren’t a lot of $36 million Architectural Glass Ornamental Glass sis, announced it had hired its first to be injected or infused. • • rounds out there, anywhere. In Back Painted Glass Decorative Glass CEO, William Sibold, previously a Sibold: I’ve been in large-molecule • one of the most difficult fundrais- Tub & Shower Enclosures Stair & Patio senior vice president at Biogen Idec markets for the last 10 years, and Railings • Bathroom & Kitchen Sinks • ing times, in the spring of 2009, Inc. (Nasdaq: BIIB), a large Cam- when you ask a patient, “Are you Faucets • Countertops • Water Walls • that Gary was able to attract Grade bridge, Mass.-based pharmaceuti- happy with your medication?” they Glass Flooring • Glass Tiles • Windows • A investors with big funds helped cal company where Sibold over- will say, “Yes, but I’d be happier if it Curtain Wall • Cabinet Inserts • Marker me make up my mind obviously. saw its $2.5 billion U.S. market. was in a pill.” These are diseases Boards • Tables • Mirrors • Closet Doors • And these are huge drug markets. Sibold, who has helped develop that don’t have oral options, yet. Partition Walls • Room Dividers • Stairs • The unmet need is tremendous. and market three drugs in his ca- Back Splashes • Doors What was the genesis for the com- It’s a fascinating space. reer that surpassed $1 billion in pany? At some point, obviously, you sales, also replaced company thought, “Hey, this research we’re do- What are the milestones you need founder Gary Glick, a professor of ing on campus could be a business.” to hit with your first round of funding? organic chemistry at UM, as presi- Glick: We were doing research on Glick: We plan for that round to We do service work for all glass dent. autoimmune diseases in the mid- fund us for three-plus years, which products mentioned above and Sibold, the one-time captain of 1990s, and it became clear that we certainly hope will get us into correlating hardware the Yale University varsity tennis there was a potential to create new clinical human trials and to give us significant proof of concept. • FREE Estimates & Design Consultations team, and Glick, who remains as treatments. I published a paper in Lycera’s chief science officer, sat the Journal of Clinical Investiga- We’ve got two programs we’re • Specializing in Custom Installations down with Crain’s at the compa- tion in 2002, and venture capital- working on. The first is our origi- 313.928.0428 nal, which is how to manipulate • SHOP online @ trainorglass.com/retail ny’s headquarters in the Michigan ists and investors started calling. Life Science and Innovation Center, a the energy in the cells that create 7420 Allen Road Allen Park, MI. 48101 former Pfizer research facility, to But you held off taking on in- problems. The second program is discuss the company. vestors? something we licensed from New Glick: There was a big medical York University, which is a pathway The company announced it is mov- need to find drugs to specifically that silences the inflammation in ing its headquarters to Cambridge. fight diseases while leaving the autoimmune diseases. What does that entail? rest of the immune system intact. Sibold: We’re in the process of We were testing lupus in mice, and You’ll need a Series B round to fin- opening up a headquarters there. then psoriasis and arthritis. We ish trials, then. It makes sense for me to be there to knew the small molecules worked, Sibold: We’re excited about ulti- be close to investors and to find the but we didn’t know how. From mately doing a Series B round. kind of development people we’re 2002 to 2006 we had to figure out That will mean we’re progressing coffee!! going to need. You locate where how and what was going on. When to the point where we have to fund you have the greatest chance to we figured it out, it made sense to pretty significant, large trials. opportunity!! have success. But it will be a small find investors. If things go well, how long before office, two or three people to start. you have your FDA approvals and have I’m spending a lot of time here, and Bill, you were head of a big team at a publicly traded company. What did you product in the marketplace? I will continue to spend a lot of my Sibold: Six to eight years. The interested?? time here. like about Lycera enough to jump ship? Sibold: I was doing a search. I company is proceeding as planned. Will there be any pressure from in- wanted to be in a small startup. I The speed at which the company franchise?? vestors to move the whole company wanted to be in a small company has done things so far is amazing. east, eventually? where I could help drive the cul- I’ve been at companies where pro- Sibold: This is where we’ll have ture. I was in a meeting with Jeff grams have sat for years with very most of our people and do most of Leiden (a managing director at little progress. our hiring. It’s where we’ll do our Contact us at Clarus and a board member at Lyc- Short-term, what do you need to do? research. We can’t replicate this fa- era), and he asked me if I would Sibold: We need to hire for some (517) 913-1987 or cility anywhere. There is no better meet with Gary. The thing that im- key positions. We need to hire peo- place in the U.S. we could be, with [email protected] pressed me was Gary flew in from ple with development experience the access to researchers and all the Detroit to meet me in quick order, as we bring products into the clin- drug development professionals. and we had good chemistry. ic. We need a chief medical officer. The reason we’ll be able to grow to Glick: I knew after 10 minutes We’ve got 15 employees, now, and profitability will be the talent we’ll Bill was who I wanted. we’ll probably hire five more this www.biggby.com be able to find in Michigan. Sibold: Gary convinced me to year. Gary, I assume you’re happy to put come to Michigan to meet every- Tom Henderson: (313) 446-0337, your science hat back on full time and one. What sealed the deal is, you [email protected] DBpageAD.qxd 11/2/2009 3:12 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS January 25, 2010 Carlisle/Wortman teams with Colo. firm to privatize services

BY DANIEL DUGGAN based Safebuilt Inc. to market priva- opment growth that was beyond “And we can take as many of ernments are looking for ways to CRAIN’S DETROIT BUSINESS tized government services such as their capacity,” said Carlisle, pres- those employees as we need and save money and also because the building code inspections and en- ident of the firm. “This is the other put them in any state at any time, state has a strong set of building The trickle of projects in the lo- forcement. end of the spectrum, but it’s an es- adjusting to what our clients codes and an eagerness to have cal construction pipeline has He expects to sential service that we can offer.” need,” he said. them enforced. meant a lot less business for most need to add an- A small number of local firms of- Carlisle/Wortman offers a range Privatizing a local building de- planning consultants, but one Ann other seven em- fer building department services, of government planning and con- partment makes sense when there Arbor firm sees the situation as a ployees to his and Carlisle hopes that by involv- sulting services, while Safebuilt has is not enough work to justify keep- chance for growth. roster of 20 in ing a large national firm, he can of- the niche of offering only building ing a staff of full-time inspectors With a smaller amount of work the next year fer better technology, depth of ex- department services. Under the on the payroll, Carlisle said. available for local building depart- and forecasts a perience and a larger number of arrangement between the compa- With a smaller amount of con- ments, Richard Carlisle expects 25 percent in- employees. nies, Carlisle will take advantage of struction work, some communities more local governments to hire crease in the Safebuilt has 63 employees and Safebuilt’s national resources and might need inspectors for only two private firms as a way to cut costs firm’s $2 million represents 130 municipalities Safebuilt will take advantage of days in one week, but then have and gain efficiency. gross revenue. through its 20 offices in eight Carlisle Wortman’s local presence. twice as much work the next week. Carlisle To that end, Ann Arbor-based “In the good states, with plans to open an office McCurdie said Michigan has all Carlisle’s firm can allocate in- Carlisle/Wortman Associates L.L.C. times, we were being called in to in Michigan, said president Mike the elements for growth in priva- spectors to a community when will work with Loveland, Colo.- help communities deal with devel- McCurdie. tized services because local gov- needed, but not have to pay people to be there when there is no work. As a result, he said he can cut costs by 30 percent to 50 percent. In the city of Riverview, Carlisle Wortman took over the building department in February. Overall department costs have been reduced THE TIME IS NOW, from $374,000 in the 2007-08 fiscal year to $185,000 in 2009-10, according to a memo prepared for the city. But there can also be added costs to developers. Joey Agree, president of Farm- THE FIRM IS ington Hills-based Agree Realty, has been involved with retail develop- ments in Michigan and the rest of the country. DOEREN MAYHEW Having worked with local governments that use outsourced building departments, Agree said that while he has had good experiences working with knowledgeable consultants, in some cases With the economy showing signs of wide range of businesses and industries. there are increased costs when private firms pass lots of fees on to the recovery, you need an accounting firm We have guided our clients through the developer. that will help you plan effectively as you depression, recessions, and economic “It can become a more expensive process when third-party consul- move forward – past your short-term restructurings – helping them remain tants become involved. There is a obstacles and on to financial success. competitive and emerge successful. Call balance between efficient opera- For 77 years Doeren Mayhew has been the professionals at Doeren Mayhew tion of a building department and costs,” he said. “Unanticipated successfully serving the professional today and make a change for the better costs can thwart development and needs of individuals, institutions, and – better service, better responsiveness, serve as a disincentive for new projects.” privately held companies, representing a better ideas, better value. Agree said a private building department can save a local government lots of money if it’s over- whelmed or understaffed. But the key is that the fees passed on to developers should be public information and comparable to fees municipalities typically employ. McCurdie said it’s crucial for a private firm to keep the balance between making a profit and offering a service to a community. He said it’s important for all of the fees to be negotiated and approved by the local government. Other local firms are making a push into the privatized building department work, such as Northville-based McKenna Associ- ates, which is handling work for Garden City. “Offering this service is an excellent way for our firm to use its expertise and talent in a new category of service,” said President Phil McKenna. “We’re actively seeking this work, and we’re expecting to do more of it.” Having worked with the public sector during the recession of the 1980s, Carlisle said he’s never seen a public revenue situation so dire. “Local governments are going to

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Page 8 CRAIN’S DETROIT BUSINESS January 25, 2010 OPINION OTHER VOICES Health care debate Mac and cheese, Michigan style Paralysis: A state of helpless actionable plan. Two: the total fail- join in and a solid belief in their fu- stoppage, inactivity or inability to ure of some elected leaders to un- ture. act. derstand their responsibility to In Michigan, we are sadly stuck Defeatism: The attitude, policy shape, foster and sustain an excit- with too much paralysis of action or conduct of a person who admits, ing brand image for this state. and a self-fulfilling defeatist atti- should target waste expects or no On the first issue, many elected tude. Both mind-sets produce a longer resists officials view the debate and the predictable outcome if allowed to ow that a massive federal overhaul of the health care in- defeat, as be- pandering to their most loyal con- flourish. Playing victim seems to dustry is uncertain, it’s time to reset the conversation. cause of a con- stituents as their primary — at be some of our leaders’ version of N Congressional Democrats focused on access and cov- viction that fur- times only — responsibility. Posi- Michigan macaroni and cheese: erage for the uninsured and guarantees that for-profit insurers ther struggle or tional politics is nothing new, but comfort food that makes you tem- couldn’t drop people with expensive claims or conditions. effort is futile; states that have moved forward porarily feel good but does nothing pessimistic res- have leaders who work through di- to improve your health. Maybe it’s time now to focus on reducing waste and costs. ignation. vergent views to actions that best All of us, business leaders and The Ann Arbor health information division of business in- Michigan is meet urgent short-term needs with elected officials alike, must accept formation giant Thomson Reuters released a white paper last in a state of the balance of the best long-term our role in shaping the culture of Robert Riney October that pegged “waste” in the U.S. health care system at paralysis; de- direction for the state. In golf, it’s Michigan and provide leadership $700 billion. featism has become public policy called hitting the sweet spot. that encourages all stakeholders to here. On the second issue, successful not only embrace current reality Waste is defined as “health care spending that can be elimi- Hasn’t been much fun in Michi- business leaders know they must but to enthusiastically participate nated without reducing the quality of care.” The Thomson gan lately, has it? The drastic re- confront business reality with in a move forward. Our state has Reuters report also refers to misuse, overuse and fraud. duction in state revenues and the transparency and ensure that all the resources and talent to In this computer-dominated age, medical billing still gobbles realization that there is no short- their organization does not fall thrive again but must have a up about one-fourth of the budget of the average U.S. hospital. term fix to this shortfall has forced victim to a delusional sense of its healthy culture that believes that elected officials and business lead- own strengths. Equally, smart there are better days ahead. Tackling this one item would have a huge national benefit. ers to confront difficult choices. leaders lead their enterprise with If you are a leader who is not But an even bigger culprit is unwarranted use of medical That’s the good news — now for an optimistic and energizing willing to move past the “ain’t it tests and treatments. Thomson Reuters pegs that as 40 percent the bad. strategic direction that creates a awful” phase, it is time for you to of the $700 billion. One: our political leaders’ in- partnership, a sense of engage- get out of the way. Robert Riney is COO of Henry Isn’t squeezing the cost out of the system something every- ability to “close the deal” and ment that makes employees and channel vigorous debate into an stakeholders feel a real desire to Ford Health System. one — business, labor, hospitals, insurers, Republicans and Democrats — agrees upon? If Congress and President Barack Obama “reset” the health care debate, the Thomson Reuters report is a good place to start. Let Bobb control academics TALK ON THE WEB From www.crainsdetroit.com Last year, Detroit Public Schools posted the worst math cations are committed to staying Re: Karen Davidson to sell Pistons? Reader responses to stories and scores ever in the history of a national test. As if we needed an- Now if we can only get Ford to around long enough to see sparks of blogs that appeared on Crain’s other sign past leadership in the schools had failed the city’s sell the Lions. economic recovery and the efforts of Web site. Comments may be children. DirtDog Mr. Bobb as regards our schools. edited for length and clarity. Chris Conn But opponents of change — and foes of emergency financial I have a feeling Bill Davidson is manager Robert Bobb — still object to allowing him the kind of rolling over in his grave right now. This experience that though different, control over the district’s academic program that he has had is sad; the Davidsons have been Re: Economists: Big drop in ’11: the quality of life in southeastern Michi- for nearly a year over its finances. That gives him too much great for basketball in Michigan. We should be using the federal TheTruth gan is exceptional, as are the opportu- stimulus money to spark new business control, they told lawmakers last week. nities to make a lasting improve- Reminds me of the Steve Miller creation in the state, not to plug Instead of heeding that chorus, lawmakers need to listen ment to the community we live in. holes in the structural budget. Band song “Take the Money and Run.” 72427 instead to the SOS that the district’s test scores, dropout rates jg48386 Orpheus The city has so much to offer ... a and other key metrics provide. Academics and finances are en- I think Mrs. Davidson … came to twined. Bobb and his team have earned the right to roll out large theater district, cultural cen- Re: There’s more to open book the wise conclusion that she is not ter and beautiful waterfront, plus their academic plan. the individual who should run this em- wonderful housing, great places to than simply opening books: The new teachers’ contract with DPS that Bobb’s team pire. eat and groups to join like Fusion, What you read in this article is crafted with the Detroit Federation of Teachers has remark- Timothy Dinan etc. The D is a great place to visit and genuine stuff. It works. It takes able opportunities for shared governance at the school build- live. some leadership discipline to do it Re: Newcomer ‘discovers’ Detroit: bhoughton01 ing level. If Bobb is allowed to focus on academics and the bud- — a major commitment to educa- I, too, am a newcomer to Detroit. tion, information sharing and par- get, the district has a chance to get on the right track. Having lived in Milan, Paris, Re: Assignment Detroit reporting: ticipation. When you do it right, it Detroit can’t have an economic future in the 21st century Greenwich and (eight other places It’s encouraging to hear that pays big dividends. without a population that is literate, educated and able to work. around the world), I can say from Time magazine and its other publi- Mr. Biz

KEITH CRAIN: This ridiculous rule needs to be changed As we all know in Detroit, we troit as the world’s Mo- Because of some sna- receive a visa before he can come. quire a journalist to apply for a have just finished a wonderful run tor City. fus at the U.S. embassy If he is a tourist, then he doesn’t visa from a country that doesn’t re- of the North American Interna- Crain Communica- in Munich, he hadn’t need a visa. quire anyone else to have a visa is tional Auto Show. tions Inc., the parent of gotten his visa; and These are antiquated rules and silly. It was a great success, and we all this newspaper, also when he inquired, they should be thrown out as quickly as In a country that believes in look forward to another event next happens to publish a told him it was too late. possible. I would hope that U.S. freedom of speech, this is discrimi- year with some very important im- German-language publi- The advertising direc- Sens. Levin and Stabenow as well nation of the worst kind. provements for Cobo Center. cation, tor from the same publi- as many of our congressional rep- If we expect to encourage jour- During this exciting week, the Automobilwoche, for the cation didn’t need a resentatives will take up this nalists from around the world to show had what is now known as automobile industry in visa and arrived un- cause and make sure that we can fly to Detroit to cover our show, press preview days. Well over Germany. scathed. eliminate this requirement imme- then we should at least allow them 5,000 journalists from all over the Our editor, a well-re- It is ridiculous that a diately. the same rights as the rest of the world descended on Detroit to spected and longtime citizen from Germany, In a country that would allow a citizens from their country. cover the show and give our city employee of Crain, coming to Detroit as a terrorist to fly into Detroit without We have to change this rule and mention around the world, once needed to apply for a visa to enter journalist to write about our auto baggage and with a bomb strapped we have to change it now. I hope again continuing to establish De- the country for this show. show, is required to apply for and to his body, the idea that we re- our representatives are listening. 20100125-NEWS--0009-NAT-CCI-CD_-- 1/21/2010 4:53 PM Page 1

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 9 Macomb forecast predicts modest job growth for 2010

BY DUSTIN WALSH to see a sharp increase in jobs.” facturers have learned to become currently hold only a 40 percent growth. SPECIAL TO CRAIN’S DETROIT BUSINESS MichiganWorks agencies assisted leaner and more efficient, Jacobs market share of U.S. light vehicle “We need to look at the people 117,000 people in Macomb County said. And manufacturing is still sales, according to Crain’s sister who have survived,” he said. Macomb County will see modest last year, Jacobs said. the lifeblood of Macomb County, publication Automotive News. “Look at these second-stage firms job growth in 2010 as the state con- However, Jacobs said that busi- he said. “We need to focus on our positioned for growth and how tinues in the last leg of its reces- ness expansion will still be rela- Downsizing in the local automo- strengths,” he said. “Manufactur- well we can sustain and grow these sion, according to the latest Ma- tively slow because of the lack of tive industry has positioned Ford ing is still a part of this state and companies here.” comb County Economic Forecast available credit. Michigan saw a Motor Co. and General Motors Co. for Macomb County.” Investment dollars are limited released last week. 74 percent decline in loans from the future, he said, expecting GM In addition, the supplier base in Macomb County, Shore said. Macomb Community College Presi- 2007 through 2009, he said. to break even this year for the first and the growing segment of sec- Making investment in second- dent Jim Jacobs told a crowd of “The lack of credit is a major time since 2005. ond-stage companies that have en- stage companies is less risky than nearly 350 at Zu- barrier in our future growth,” he However, impact on the state dured the economic downturn are investing in startups. carro’s Country said. “We have to have expansion and Macomb County will depend the strength of the county’s busi- “Resources are tight,” she said. House on Jan. 20 of credit and more opportunities on whether domestic automakers ness sectors, Jacobs said. Second- “We always want to spur the en- in Chesterfield from the financial sector.” recover some of the market share stage companies have 10 to 100 em- trepreneurial spirit, but it makes Township that Michigan-based manufacturing they lost in 2008. ployees with revenue of $1 million more sense to spend resources on the county could will stabilize, he predicted. Manu- GM, Ford and Chrysler Group L.L.C. to $100 million, with room for second-stage development.” see the beginning of economic recovery by June. He expects Jacobs county job growth in the fourth quarter with the addition of 15,000 to 20,000 new jobs. “My assessment is hopeful,” Ja- cobs said. “I believe we’ve finally hit bottom in Macomb County.” The economic recession led Ma- comb to its worst economic growth figures in its history last year, Ja- cobs said, as the county lost nearly half of its manufacturing jobs over the past decade. However, he sees new growth companies in the defense industry, expecting metro Detroit to land $5.7 billion in defense contracts in 2010 — $134 million to filter through Macomb Community College’s Procure- ment Technical Assistance Center. Jacobs also expects Warren’s U.S. Army Tank and Automotive Re- search, Development and Engineering Center and the U.S. Army Tank-Auto- motive and Armaments Command to create 600 jobs this year. Grace Shore, CEO of the Macomb County Chamber of Commerce, said Macomb County businesses are expecting a very slow growth this year, as Jacobs noted. “I was glad to hear affirmation of what I’ve been hearing from our businesses,” she said. “I think the worst is over, but we’re not going

United Solar Ovonic wins tax credit for plant upgrade Rochester Hills-based Energy Conversion Devices Inc. (Nasdaq: ENER) reported last Thursday that its United Solar Ovonic L.L.C. subsidiary has received $13.3 million in a manufacturing investment tax credit as part of the feder- MADE IN MICHIGAN al stimulus program. The credit will support United Solar’s plan to invest $42 million in an Auburn Hills facility to upgrade equipment used to make flexible solar roofing materials. It is estimated that the project will create about 600 jobs in the state and will lower the company’s cost of producing the materials and increase output. “We are very appreciative of the Obama administration’s efforts to A better partnership. | wnj.com support American clean technology through the stimulus program,” SOUTHFIELD | STERLING HEIGHTS | GRAND RAPIDS | HOLLAND | LANSING | MUSKEGON said EDC President and CEO Mark Morelli in a press release. — Tom Henderson 20100125-NEWS--0010-NAT-CCI-CD_-- 1/21/2010 4:36 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS January 25, 2010 $2M effort aims to help arts groups collaborate, cut costs

BY SHERRI WELCH York-based Ford Foundation — are profit Association are leading the ing operationally. see are similar to other segments,” CRAIN’S DETROIT BUSINESS putting $2 million behind an effort three-year effort. “We know that the economic sit- Kuhn said. “This will lead to an to help more than 30 local arts and “Two of the strengths this re- uation of our state is not a tempo- entirely different way of doing Local and national foundations cultural groups explore areas they gion can draw upon as we reinvent rary downturn (but) … a restruc- business.” have for years nudged nonprofits can collaborate in their operations ourselves are our arts and cultural turing of our economy,” said Maud Over 30 arts and cultural groups to look for ways they can operate and to implement four to six of sector and our long tradition of Lyon, executive director of the are part of the discussions, Lyon together to cut costs. those ideas by 2012. creativity,” said Alice Carle, pro- Cultural Alliance. said, with some participating in Now two of them — the Troy- The Cultural Alliance of Southeast- gram director at Kresge, in an e- The association “is trying to more than one concept group. based Kresge Foundation and New ern Michigan and the Michigan Non- mail. help our members navigate so that The groups are looking at how “However, the area’s arts and at the end of it, they’ll be here do- they can work together in areas cultural sector is also struggling to ing even better work and financial- such as financial and operations adapt to the new economic reali- ly sound,” she said. management, centralized adminis- ty.” “If we can help our members op- tration of certain functions such as The Strategic Alliances Project erate more efficiently on that back- human resources, print produc- “will help to provide the tools and house side, they can contribute tion, program ad sales and volun- support necessary to allow orga- more of the money they have to- teer recruitment and coordina- nizations to explore and imple- wards their mission.” tion, sharing facilities, ment cost savings and to poten- When the Cultural Alliance in- industrywide marketing efforts tially consolidate infrastructure,” troduced its members to the pro- such as establishing a cultural cal- she said. gram last fall, it urged them to iso- endar Web site that sells tickets to The project, which began last late everything in their budget events, and at how some could fall, will end in 2012 with four to that directly correlates to their work together to build audiences. six areas where two or more arts mission, Lyon said. “This is to look at the question and cultural groups are collaborat- Everything else — backroom of long-term sustainability for the operations, insurance, human re- arts in Michigan,” said Carla Mi- sources, accounting, running facil- larch, executive director Perfor- ities “is what this project is de- mance Network Theatre, one of sev- signed to help (them) handle,” she eral participants in a professional said. theater group exploring ways they The Cultural Alliance has hired can work together. three man- Following agers to facili- declines in tate discus- funding sions among If we can help our from the do- the 20 concept “ mestic au- groups, re- members operate more tomakers search and and other consultation efficiently on that corporations from legal, fi- backhouse over the past nancial and couple of technical ex- side, they years, the perts to help state in Oc- explore the can tober cut concepts and funding to help those 20 contribute arts groups groups come to just under up with a more of the $2.3 million business plan from $7.9 for how money they million in they’d work 2009 for the together and have towards their Michigan what re- Council for sources mission. Arts and Cul- they’d need to ” tural Affairs do so, by the Maud Lyon, grants pro- end of June. Cultural Alliance of Southeastern Michigan gram. At that Perfor- point a sub- mance Net- committee of work The- an expert panel, convened by MNA atre last year trimmed its budget to offer guidance and feedback to by $200,000 to $750,000 by cutting the concept groups throughout the salaries 5 percent to 20 percent, process, will pick the top four to one of its 11 staff positions, health six concepts. Those groups will re- care benefits and one of its seven ceive funding to implement their shows, Milarch said. collaborative ideas. “The real issue is being able to MNA, which is serving as fidu- find sustainable business models ciary for the $2 million in funding, where if we get a cut to our budget Buildings Spoiling Your Business? brings expertise in forging non- … we’re not reeling,” she said. profit partnerships, as well as “Oftentimes, the barriers for Aligning real estate assets to your changing business Lease Renegotiation technical experts to help explore these kinds of long-term collabo- the concepts, Lyon said. rations are people don’t have the plans is crucial in this economy. Plante Moran CRESA Tenant Representation “This is looked at as a pilot that time and the money to invest if will create a real estate strategy that adds to your could be replicated not only in there’s no guaranteed outcome.” Incentives other regions with arts groups but By providing management and bottom line. Since we do not represent buildings or (also) with other subsectors of technical assistance with funding Sale Leaseback nonprofits such as human service to explore the collaborations and landlords, our unbiased approach will focus solely on and community development or- later to fund them, the Strategic your success. (248)223-3500 pmcresa.com Project Feasibility ganizations,” said Kelley Kuhn, Alliance Project is a “fantastic director, management support model—one I hope other groups Lease Administration and capacity building services for may find a way to follow,” Milarch MNA. said. While the main focus of the pro- “The idea is this is not about Buyer Representation ject is helping arts and cultural making organizations merge or groups work together, there are lose their identity,” Lyon said. Project Management concept groups that could invite “It’s about helping them to oper- other nonprofit participants as ate efficiently in very specific op- well, she said. erational functions, and as quickly “Working through a pilot for as possible.” lessons learned is critical because Sherri Welch: (313) 446-1694, issues that arts and culture will [email protected] 20100125-NEWS--0011-NAT-CCI-CD_-- 1/21/2010 5:25 PM Page 1

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Extra CRAIN’S LISTS Sherri Begin Welch Top office and industrial writes about nonprofits and leases, plus commercial real services. estate sales, Pages 18-21 Call (313) 446-1694 or write [email protected]

Sherri Begin Welch Towers Watson merging offices Dollars Towers Watson & Co., which began operating as a merged business Jan. 1, plans to merge its two Southfield offices by June. Employees and operations will move into what was the local Watson Wyatt office on Northwestern Highway. The company has five years many, deals remaining on that lease, said Phil Ullom, managing consultant for Towers Watson’s Michigan operations. Conversely, the lease at the former Towers Perrin office in the Town Centre runs out in June, said Ullom, who was managing consultant for few Watson Wyatt’s Michigan operations before the merger.

Patty Smallsreed, who had been ISTOCKPHOTO.COM head of Towers Perrin’s Michigan division, is still with the company, but her position has not been finalized, Ullom said. All of the company’s appointments Bailouts, credit crunch torpedo 2009 M&A at the most senior and middle levels of the company have yet to be BY RYAN BEENE early ’09, regardless of what your reason finalized, he said. CRAIN’S DETROIT BUSINESS was for selling, no one would show up (to “We really don’t know how the (Auto industry firms) buy),” said Scott Eisenberg, managing di- organizational structure is going to et’s take a moment to say thank you to “ rector at Birmingham-based Amherst shape itself at the local levels,” Ullom Pulte Homes Inc. had better things Partners L.L.C. “It’s kind of like you said. L The Bloomfield Hills-based home- throw a party and no one shows.” The next round of selections is builder’s acquisition of Dallas-based Cen- to spend our time But local M&A experts broadly agree scheduled to be completed by late tex Corp., which made it the largest home- the market is improving, with signs of February or early March. builder in the U.S., was one of the few on than M&A — increased momentum as 2009 drew to a “There are still management bright spots in a deal market mostly close. positions to be determined at both the marked by distress. our focus was on That’s a good thing, because 2009 was divisional and local office levels.” Banks hoarded cash to prop up survival. a disaster. The all-stock, $3.5 billion merger of IN 2010 balance sheets, keeping capital ” Stamford, Conn.-based Towers, Perrin, out of investment funds while Paul McCarthy, Forster & Crosby Inc. and Arlington, Foreign companies cut costs — and jobs Fear factor buyers: PricewaterhouseCoopers L.L.C. Va.-based Watson Wyatt Worldwide — to the bone in a world where The fallout from the meltdown of Lehman Expect budgeting for the next two weeks, Inc. closed in the fourth quarter of last more local Bros. and other lending institutions carried year. deals, much less the next two quarters, decades, two automakers and dozens of over into 2009. Banks hoarded cash to pro- The merged company, Towers Page 12 was borderline futile. suppliers filing for bankruptcy and many tect what capital they had rather than Watson (NYSE, Nasdaq: TW), is Most companies were preoc- smaller firms liquidating. But that dis- putting it to work in the M&A market. expected to post annual revenue of cupied with survival, and lenders with tress drove much of the local deal activity. “The world was ending, there was a fear more than $3 billion. About $78 preserving capital. Nationally, the story was the same. factor, financing wasn’t there, banks were million of that is from the combined “Especially in the first half of the year, McCarthy said 134 automotive deals to- tipping left and right,” Eisenberg said. Michigan operations, the company frankly, (auto industry firms) had better taling $83.1 billion were done nationally in “When Lehman fell over, the whole finan- said. things to spend our time on than M&A – 2009, citing data from PWC’s Automotive cial community got rocked, and when you Towers Watson employs 14,000 our focus was on survival and ‘do we have M&A Insights report scheduled for release asked lenders what their priority was in people around the world. About 243 of the cash to run this business next year?’ ” in February. ’09, it was to preserve capital.” them are in Michigan, most in said Paul McCarthy, a director of Pricewa- But $70.2 billion of that total came di- Cash flow lending and senior debt — the Southfield, but about a dozen or so terhouse-Coopers’ transaction services rectly from the government, which if ex- bread-and-butter of the M&A world — was people operate from a Grand Rapids strategy group in Detroit. cluded “you have a deal market that was next to nonexistent for much of the first office. Hardest hit was automotive, with car not all that active,” he said. “Everyone is still on board,” Ullom sales plummeting to the lowest levels in “What we found was that in late ’08 and See Deals, Page 12 said. “In any merger like this there may be job consolidations, but we just don’t know yet.” The deal creates the world’s largest 2009 M&A by the numbers. For full list, see Pages 14, 15 human resources company out of two rivals. “We have without question much $80.9 $76.4 $67.8 $4.3 $1.3 $275 deeper bench strength, resources and a wider range of expertise than either company had alone in three billion billion 46 billion billion billion million segments: benefits, talent and Total value of Previous high The number of Value of deals Value of deals What Pulte What Becton, rewards, and risk and financial local deals in in 1998, when local deals in in which the U.S. not related to Homes Inc. paid Dickinson & Co. services,” Ullom said. 2009, the largest there were 152 2009, the government took local for Centex Corp. paid for HandyLab “There were few markets where we since Crain’s deals and smallest since equity. bankruptcies or to become the Inc. The sale had roughly the same market share,” began tracking in Daimler-Benz AG Crain’s began government largest U.S. netted the he said. 1996. bought Chrysler tracking. bailout money. homebuilder. University of “There’s really a very strong market for about Michigan’s share in most markets for us now.” $40 billion. student-run Wolverine Venture Fund $2 million. 20100125-NEWS--0012-NAT-CCI-CD_-- 1/21/2010 5:26 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 25, 2010 Finance Extra: Big Deals of 2009 Deals: M&A experts cautiously optimistic about this year ■ From Page 11 half of 2009. By preserving capital, son, Roesler said, and it wasn’t un- largely the entire capital structure Need to sell to the bone, taking acquisitions off lenders left the deal-financing cup- til the second quarter that banks ourselves,” he said. the table in moves that sacrificed board bare, relegating potential even began to work with some Demkowicz said even though “A lot of the activity was driven growth to ride out the economy. buyers to the sidelines. customers, “not for making acqui- credit conditions are improving, by companies that were in a need- Distress sales made up much of “I think you had, beginning in sitions … but we’re talking about Huron had to provide 80 percent of to-sell mode,” Eisenberg said. “Ei- the local M&A activity last year. the second quarter and through the survival and continuance.” the financing for two recent deals, ther the lenders were forcing it, cus- “More often than not, when the end of third quarter of ’08, you had a The lack of capital strained rather than the more typical 40 tomers were forcing it, or the market as a whole is distressed continuous reduction of the cash many private equity firms. Brian percent to 50 percent. company was in financial trouble. like this, you’re seeing upon entry flow lending that we were all accus- Demkowicz, managing director of “Where on the one hand, particu- There was a need to sell, as opposed into bankruptcy the size of debts is tomed to,” said Clifton Roesler, Detroit-based Huron Capital Partners larly in the later half of 2009, you to someone saying ‘I’m going to sell such that it often requires a transi- managing director at Detroit-based L.L.C., said to get deals done, his saw strategic buyers reaching out and cash out in a big way.’ You did- See next page investment bank W.Y. Campbell & Co. firm frequently had to bankroll and picking up assets that were at- n’t have any of that in ’09.” “And in the fourth quarter, the spig- most of a transaction. tractive to them,” Roesler said. “In Companies also went on the de- ot had just turned off.” “W had resigned ourselves that the first part of the year, you didn’t, fensive. Like banks, businesses There was no lending during the in order to get transactions com- because everyone was essentially moved to protect cash. Firms cur- first quarter of 2009, for any rea- pleted we were going to put in hoarding every last ounce of cash.” tailed capital spending and cut costs More local deals expected from foreign buyers As transactions gain momentum in 2010, as local M&A insiders expect, foreign buyers are likely to play a more active role. Such buyers, especially from emerging markets such as Chi- na, are increasingly looking to U.S. companies as a resource to gain a foothold in North Ameri- ca, new customers and access to intellectual property. Kevin Marsh, vice president of W.Y. Campbell & Co., said opportunities with overseas buyers helped to keep the Detroit- based investment firm busy. In July, the company closed a $110 million deal to sell Delphi Automotive L.L.P.’s global brake and suspension manufacturing business to China-based Beijing- West Industries Co. Ltd., a joint venture between the Beijing municipal government, Chi- nese auto supplier Tempo Inter- national Group and a third Chi- nese firm. In December, W.Y. Campbell Who is Rehmann? secured a $33 million credit line $0LFKLJDQEDVHGÀUPRI&3$VEXVLQHVV for Plymouth-based Prestolite FRQVXOWDQWVDQGÀQDQFLDODGYLVRUVIRFXVHGRQ\RXUVXFFHVV Electric Holdings Inc. from a Chi- 2XUSURIHVVLRQDOVLQ6RXWKHDVW0LFKLJDQVHUYHFOLHQWV nese investment fund. DFURVVDPXOWLWXGHRISUDFWLFHDUHDVIURPSULYDWHO\KHOG Scott Eisenberg, managing di- EXVLQHVVHVWRSXEOLFO\WUDGHGFRPSDQLHVIURPLQGLYLGXDOV rector at Amherst Part- WRPXOWLQDWLRQDORUJDQL]DWLRQV ners L.L.C., said he is What makes us different?2XUSURDFWLYHFOLHQWIRFXVHG working with One team. DSSURDFKWRGHOLYHULQJEXVLQHVVZLVGRP:LWKRQHFDOO several for- WR5HKPDQQ\RX·OOJDLQDFFHVVWRDKDQGSLFNHGWHDPRI eign buyers SURIHVVLRQDOVZLWKWKHULJKWH[SHUWLVHWRDGGUHVV\RXU looking at au- WRSSULRULWLHV tomotive and One focus. industrial

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra: Big Deals of 2009

From previous page quarter was at an apex of unavail- for activity gaining momentum. izes in automotive able credit, and now is swinging While he said he’s not as bullish M&A, said deals tion of the business to somebody toward a market in which deals about 2010 as some, he noted that We are certainly are back on the else,” said Robert Gordon, leader can get done. every month since the fourth “ radar screens of of Detroit-based Clark Hill P.L.C.’s “As we see economic improve- quarter has shown improving eco- seeing the market management at corporate restructuring and bank- ment, you’ll see better cash flow; nomic indicators compared to the suppliers and au- ruptcy practice. and when access to credit im- prior year. pick up. tomakers. “The companies are so signifi- proves, you’ll see people interest- “For the first time, companies ” “We have seen, cantly underwater it’s very hard ed in more M&A activity,” he said. can actually plan a little bit and Brian Demkowicz, as the year has pro- for there to be a true standalone Huron Capital’s Demkowicz have at least some confidence that Huron Capital Partners L.L.C. gressed, a return to reorganization.” says business is clearly on the if they have a budget for the year a more normalized The frequent result is the sale of rise. they have a good chance at achiev- “More recently, there’s certain- M&A market to where we’re see- business units or whole business- “Just in the last 60 days we ing it,” he said. ly been some of what I would call ing deals done for strategic rea- es to new owners. closed two deals and expect to Asset-based lending began to re- more ‘old days’ types of transac- sons, not just distressed situations During a recession, bankruptcy close another one,” he said. “We turn in the second and third quar- tions, where there was consider- or disposals,” he said. “When we becomes a common forum for are certainly seeing the market ters, and now, cash-flow lending is able interest and high multiples were talking to management, M&A activity, where companies pick up and people’s appetitive to slowly becoming more available to paid, increasingly towards the end M&A is back on the agenda and its shift their focus from trying to jump back in pick up.” strong companies looking to make of the year,” said Kevin Marsh, part of a broader growth strategy.” generate optimal returns for equi- Demkowicz credits a clearer more strategic deals, rather than vice president at W.Y. Campbell. Ryan Beene: (313) 446-0315, ty holders to creating the best so- economic outlook as a main driver opportunistic bargains. Even McCarthy, who special- [email protected] lution for all creditors, said William Wildern, CEO of Farm- ington Hills-based turnaround and restructuring firm Hydra Pro- fessionals L.L.C. “When you’re not within the When your next transaction is just too important, call Dykema. zone of insolvency, you act in a manner to increase the value of the shares so you look for mergers, acquisitions, divestitures – opportunities to shift your business to create value,” he said. “When you get into the zone of in- ITC Holdings Corp. John Hancock Trust Rockwell Medical solvency, you have a fiduciary duty to shift that focus to benefit and Its Affiliates Over 1 Billion Dollars Technologies, Inc. all creditors.” Strategic Development Projects Combinations of mutual funds Registered Direct Public Offering The lack of available credit last year made buyers scarce. Those 2009 2009 October 2009 who did step up to the plate were often motivated more by the opportunities to buy businesses at very low prices. For example, startup industrial holding company Revstone Indus- tries, through local affiliate Cerion L.L.C., went on a buying spree in Cloverland Electric Michigan Municipal 2009, buying bankrupt suppliers Contech L.L.C., Precision Parts Inter- Cooperative Bond Authority national Inc. and Intermet Corp., all Execution of definitive $892,970,000 for depressed values. agreement subject Revenue Notes Contech, which posted $220 mil- to regulatory approvals lion in 2008 revenue, was acquired 2009 August 2009 for $30 million; about $19 million was enough to buy PPI, which posts about $190 million in annual revenue, and Intermet was acquired for $13 million while the company posted $310 million in annual revenue, according to bankruptcy court documents. Bankruptcy deals like these, while taking up much of the M&A Edco Group, Inc. Constellation Energy Asterand plc market, were less pervasive than Acquisition of Solcom Inc. Projects & Services Acquisition of BioSeek, Inc. many expected. Seeing low recov- Group, Inc. eries from the flood of bankruptcy February 2009 November 2009 sales that came to market in the Energy Services Project (closing pending) first quarter, especially in the December 2009 auto supply chain, banks holding senior debt in troubled companies opted to hold on to loans that they might otherwise have called. “The result of those auctions was so bad that the banks essentially stopped taking those assets to market, so they adopted a wait- Compuware Corporation Citizens Republic and-see approach,” Roesler said. $80,000,000 Bancorp, Inc. “Ultimately, I think the banks Sale of certain assets to Micro Focus Holdings Limited $210,000,000 still have a large inventory of Exchange offers of common May 2009 loans in companies that they are stock for the company's publicly unwilling to support on a long- $295,000,000 traded debt securities term basis, and as a result we will Acquisition of Gomez, Inc. September 2009 see more transactions as the lend- November 2009 ing markets slowly warm up.” Swinging to health M&A experts across the board agree that the economy has bot- tomed, the worst of the credit cri- sis has passed and prospects for an improved M&A market this year California | Illinois | Michigan | Texas | Washington, D.C. are high. © 2010 Dykema Gossett PLLC Hydra Professionals’ Wildern www.dykema.com likened the credit markets to a pendulum that during the first 20100125-NEWS--0014-NAT-CCI-CD_-- 1/21/2010 4:52 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 25, 2010 CRAIN'S LIST: MERGERS & ACQUISITIONS

Annual Value of revenue Date transaction Rank Acquirer name Target Acquirer advisers Target advisers ($000,000) effective Description ($000,000) General Motors Co. (U.S. Assets of former General Evercore $98.0 July After filing for Chapter 11 bankruptcy on June 1, General Motors sold $46,800.0 Government, UAW VEBA Motors Corp. (estimate) its best assets to a new company owned by the U.S. government (60 healthcare trust, Canadian percent), the UAW VEBA healthcare trust, 17.5 percent, the Canadian government) government (12 percent) and GM bondholders(10 percent). The U.S. 1. government recieved the stake in return for providing $50 billion to the company during the Chapter 11 reorganization, in addition to the $19.4 billion in loans the government issued GM starting in Dec. 2008. The Canadian government gave GM $9.5 billion in assistance. United States of America GMAC, Detroit Corrs Chambers Westgarth Wachtell Lipton Rosen & $18,395.0 Various The U.S. owns 56 percent of GMAC; Cerberus Capital Management $16,300.0 Katz; Lazard L.L.C.; Morgan retains 15 percent; third-party investors, 12 percent; GM, 10 percent 2. Stanley; Sullivan & and a GM affiliate 7 percent. GMAC declared its first quarterly stock Cromwell dividend of $129 million on preferred stock issued to the government payable Feb. 15. Chrysler Group L.L.C. Assets of Chrysler L.L.C., Cassels Brock & Blackwell Chiomenti Studio Legale; $47,600 June Chrysler L.L.C. and Fiat formed a global alliance as part of Chrysler's $4,700.0 Auburn Hills L.L.P.; Davies Ward Phillips Freshfields Bruckhaus (2008) Chapter 11 bankruptcy proceedings. The initial terms of the deal gave & Vinebuerg L.L.P.; Deringer; Hogan & Hartson Fiat a 20 percent stake in the new Chrysler, now called Chrysler 3. McKenna Long & Aldridge L.L.P.; Jones Day; McCarthy Group L.L.C., with the UAW's VEBA healthcare trust owning the 68 L.L.P.; Sullivan & Cromwell; Tetrault; Citi; Greenhill & percent of Chrysler Group's equity and the U.S. and Canadian Lazard L.L.C.; Rothschild; Co.; J.P. Morgan; Covington governments owning 10 percent and 2 percent, respectively. UBS & Burling Delphi Creditors (DIP Lenders; Substantially all assets of Blake Dawson; Davis Polk & Skadden Arps Slate Meagher October Debtor-in-possession lenders agreed to forgive $3.5 billion in debt in $4,350.0 Elliot Associates LP; Silverpoint Delphi Corp., Troy Wardwell; Dechert; Jones & Flom; Rothschild exchange for ownership. GM agreed to assume control of five plants Capital L.P.; Motors Liquidation Day; Weil Gotshal & with UAW representation and Delphi's Saginaw-based global steering 4. Co.) Manges L.L.P.; Willkie Farr business. GM also agreed to assume $1 billion in debt, waive & Gallagher; Evercore $2 billion in claims and invest $1.75 billion. Partners Inc.; Greenhill & Co. Motors Liquidation Co. Steering business, Delphi Alix Partners Skadden, Arps; FTI $2,100.0 Pending Deal includes assumption of $190 million in debt; GM will pay $250 $2,800.0 5. Corp., Troy Consulting; Rothschild million to Delphi when the sale closes.

Pulte Homes Inc., Bloomfield Hills Centex Corp., Dallas Citigroup, Banc of America Goldman Sachs; Wachtell, April Made Pulte the largest U.S. homebuilder with combined revenue at $1,300.0 6. Securities; Merrill Lynch; J.P. Lipton the time of the acquisition of $11.6 billion. Deal was in stock. Morgan; Sidney Austin

General Dynamics Corp., Falls Axletech International Inc., Latham & Watkins L.L.P. December Sold by Carlyle Group. Value is estimated. $700.0 7. Church, Va. Troy

MD Investors Corp. Assets of Metaldyne Corp., Kirkland & Ellis Lazard L.L.C. $650.0 October Assets bought from bankruptcy by group of term lenders led by The $550.0 Plymouth Carlyle Group and Solus Alternative Asset Management L.P. Reorganized company operates as Metaldyne L.L.C. Purchase price is 8. $40 million cash plus assumption of $8.5 million in debt. MD investors also forgave more than $440 million in secured term debt in the deal. Value is estimated. Faurecia S.A., France Emcon Technologies L.L.C., Cleary Gottlieb Steen & Morgan Lewis & Bockius; $3,500.0 Pending Faurecia announced the acquisition of Emcon in November. It plans $507.5 Troy Hamilton; BNP Paribas J.P. Morgan to combine Emcon with its exhaust systems business to form Faurecia 9. Group Emissions Control Technologies, which is expected to post global revenue of about $7.7 billion annually, making it the largest supplier of emissions technologies in the world. MP Thrift Investments L.P., New Flagstar Bancorp Inc., Troy Sullivan & Cromwell; Kutak Rock; Skadden Arps June Sold 80 percent stake to affiliate of MatlinPatterson Global Advisors $350.0 10. York Sandler O'Neill & Partners Slate Meagher & Flom; L.L.C. Deal dependent on Flagstar getting TARP money from the Keefe Bruyette & Woods federal government. Deal done in a series of four purchases.

Compuware Corp., Detroit Gomez Inc., Lexington, Dykema Gossett; internal; Cooley Godward Kronish November Acquired company is a Web application experience management $295.0 11. Mass. Updata Advisors Inc. company.

Becton, Dickinson & Co., New HandyLab Inc., Ann Arbor Ropes & Gray L.L.P. Jaffe Raitt Heuer & Weiss; November HandyLab makes sensor-based medical devices for rapid disease $275.0 12. Jersey Goldman Sachs & Co. diagnosis; will remain in Ann Arbor.

Wind Point Partners, Detroit Hearthside Food Solutions Kaye Scholer; KPMG April Acquired company is a contract manufacture and packager that $260.0 13. L.L.C., Grand Rapids serves other large North American food manufacturers. Employs 1,200. Value is estimated.

Auto Club Insurance Association, Meemic Insurance Co., FBR Capital Markets & Co. Bank of America Merrill April Purchased from GMAC Financial Services, which paid $327 million $217.5 Dearborn Meemic Insurance Services Lynch; Foley & Lardner for the company in 2005. Purchased company employed 130. Will 14. Corp., Auburn Hills continue to operate under the Meemic name. Total revenue will be about $1.8 billion after the deal. OM Group Inc., Cleveland EaglePicher Technologies Jones Day Gibson Dunn & Crutcher; $125.0 December Acquired company is in Joplin, Mo., and specializes in making $201.0 subsidiary of EaglePicher Lazard L.L.C. batteries and battery management systems for the defense, aerospace 15. Corp., Dearborn and medical industries. Deal value is $171 million in cash and $30 million in assumed liabilities. Lochpe-Maxion S.A., Brazil Wheel-making business of Arnold & Porter; Barbosa J.P. Morgan September Acquired business has manufacturing facilities in Limeira, Brazil, and $180.0 ArvinMeritor Inc., Troy Mussnich & Arago; Skadden San Luis Potosi, Mexico. ArvinMeritor wanted to focus on its core 16. Arps Slate Meagher & Flom business of parts and systems for truck, trailer and specialty OEM manufacturers. Sichuan Tengzhong Heavy Hummer unit of General Shearman & Sterlin L.L.P.; Citicorp Pending GM announced in June it signed a memorandum of understanding to $150.0 17. Industrial Machinery Co. Ltd., Motors Co., Detroit CITIC Securities Co.; Credit sell the Hummer brand; deal still awaiting approval of Chinese China Suisse government.

Patriarch Partners L.L.C., New Dura Automotive Systems Jones Day Lazard Freres & Co.; $1,750.0 Pending Plans to roll Dura into its Global Automotive Systems group, which $125.0 York Inc., Rochester Hills Kirkland & Ellis including Dura, is expected to post more than $2 billion in annual 18. revenue. Dura makes a wide variety of components, including doors, parking brakes and pedals, cable systems, exterior trim and other specialty metal products. BeijingWest Industries Co. Ltd. Ride dynamics and brake Squire Sanders & Dempsey W.Y. Campbell; Skadden $540.0 July Acquired from bankruptcy. When announced, the deal was the $100.0 business units of Delphi L.L.P.; Honigman Miller Arps largest between a Chinese-based supplier and a U.S.-based auto Corp., Troy Schwartz and Cohn L.L.P. supplier. BeijingWest is a joint venture established to purchase 19. Delphi assets by the Beijing municipal government, Chinese auto supplier Tempo International Group, and a third Chinese firm, Tempo's Canton Township affiliate, Tempo Industry Ltd. Micro Focus Holdings Ltd., Assets from Quality Kirkland & Ellis Dykema Gossett; internal; May Assets included development, sales and customer support teams $80.0 Newbury, England Solutions product line of Update Advisors Inc. totaling about 330 employees and some technologies as part of 20. Compuware Corp., Detroit Compuware's decision to focus on core technologies with higher profit margins. Magna International Inc., Cadence Innovation L.L.C.'s Rothschild; Squire Sanders April Sale was $60.58 million Canadian; converted to U.S. dollars as of $58.0 21. Mississauga, Ontario operations in the Czech & Dempsey L.L.P. Jan. 20, 2010. Republic, Troy

Inland Industrial Services Group Speed Industrial Services, Jaffe Raitt Heuer & Weiss Kean, Miller $30.0 August $52.8 22. L.L.C., Detroit Baton Rouge, La.

HHI Holdings Inc., New York Assets of FormTech Proskauer Rose; Genner & Strobl & Sharp P.C.; Potter October HHI bought FormTech out of Chapter 11 bankruptcy. The company $50.0 23. Industries L.L.C., Royal Oak Black Anderson & Corroon L.L.P. is now known as HHI-FormTech.

Source: Company submissions, Crain's research and Bloomberg News. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. The list does not include all 2009 transactions; only transactions valued at $10 million or more are included. Continued on Page 15 20100125-NEWS--0015-NAT-CCI-CD_-- 1/21/2010 5:35 PM Page 1

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 15 CRAIN'S LIST: MERGERS & ACQUISITIONS Continued from Page 14

Annual Value of revenue Date transaction Rank Acquirer name Target Acquirer advisers Target advisers ($000,000) effective Description ($000,000) DCP Midstream Partners L.P., Natural gas assets in Internal Internal November Subsidiary of DTE Energy Co. sold gas gathering and treating services $45.1 Denver northern Michigan of for natural gas produced in Antrim shale formation. 24. MichCon Pipeline Co., Detroit

Dental Network of America, Oak DenteMax subsidiary of Blue June DenteMax owns one of the nation’s largest independent dental PPO $45.0 Brook, Ill. Cross Blue Shield of networks with more than 91,000 dentists, serving more than 5 million 25. Michigan, Detroit members nationwide. The Blues sold DenteMax for a net gain of $28.1 million.

Flex-N-Gate Corp., Urbana, Ill. Bumper systems business of Pepper Hamilton Foley & Lardner L.L.P. July Deal includes four Meridian plants in Grand Rapids, Fowlerville, $43.0 Meridian Automotive Ionia; and Angola, Ind. 26. Systems Inc., Allen Park

BorgWarner Inc., Rochester Hills Beru AG, Germany Internal $588.5 in September BWA purchased the remaining shares of Beru AG in Germany. The $34.0 2008 company made its initial purchase of about 70 percent of Beru in 27. (converted 2004. BorgWarner acquired the remaining shares between 2004 and from Euros) closed the transaction in 2009.

Cerion L.L.C., Southfield Contech L.L.C., Portage Advanced Manufacturing W.Y. Campbell $220.0 August Acquired Contech's castings business through a bankruptcy sale. $30.0 28. Group L.L.C.

Fillpoint Inc., Mechnicville, N.Y. Handleman Co., Troy W.Y. Campbell, Pepper $220.0 February Company liquidated. The last assets disposed of were Crave $24.0 Hamilton Entertainment Group, a video game distributor and publisher and 29. Reps L.L.C., a national in-store merchandiser.

Huron Capital Partners L.L.C., Landes Trucking Inc., Honigman Miller Schwarts Brown, Hay & Stephens December Made through Huron Fund III L.P. and platform company Cardinal $20.0 Detroit Jacksonville, Ill. and Cohn; Plante & Moran Agri-Logistics Inc. Terms were not disclosed; $20 million value 30. represents the amount of money Huron committed to close the transaction.

Cerion L.L.C., Southfield Precision Parts International Advanced Manufacturing Alvarez & Marcel; Pepper $190.0 March Cerion acquired PPI through a bankruptcy sale. $19.0 31. Inc., Rochester Hills Group L.L.C. Hamilton

Fisker Automotive Inc., Irvine, GM Assembly Plant Pending Fisker purchased GM's vehicle assembly plant in Wilmington, Del., $18.0 32. Calif. to build plug-in electric vehicles.

Autoliv Inc., Stockholm Delphi's North American Alston & Bird L.L.P. Butzel Long; internal $125.0 December Deal transfers steering wheel, seatbelt and airbag books of business in $17.0 airbag, seatbelt and steering North America to Autoliv, which has offices in Southfield and Auburn 33. wheel assets Hills.

Bienes Turgon SA de CV Delphi's exhaust business, Skadden Arps Slate Meagher January Sold out of bankruptcy. $17.0 Troy & Flom; Lincoln 33. International L.L.C.

Energy Conversion Devices Inc., Solar Integrated CreditSuisse; Covington & Thomas Weisel Partners; August Solar Integrated makes a wide variety of components used in $16.3 Rochester Hills Technologies Inc., Los Burling Greentech; Jones Day photovoltaic systems that are installed in industrial and commercial 35. Angeles construction projects for electrical generation.

Huron Capital Partners L.L.C., Maple Leaf Automotive Inc., Honigman Miller; Crowe Gowling LeFleur Henderson $25.0+ October Acquired company makes aftermarket automotive repair products. $15.0 36. Detroit Mississauga, Ontario Horwath Value given as more than $15 million; exact figure not disclosed.

BlackEagle Partners L.L.C., Regional operations centers Honigman Miller Schwartz None $185.0 October Bought with Building Industry Partners L.L.C., Dallas. Holding $15.0 Bloomfield Hills in Wisconsin, New York and and Cohn L.L.P.; Alvarez & company called US LBM Holdings L.L.C. was created to operate the 36. Connecticut of Stock Marsal acquisitions and serve as a platform for future ones. Deal was Building Supply L.L.C., confirmed at more than $15 million; likely to be much more. Green Bay, Wisc. Asterand plc, Detroit BioSeek Inc., San Francisco Dykema Gossett; Bird and Wilson, Sonsini $3.2 Pending Initial payment of $1 million plus up to $13 million payable in 2011 $14.0 Bird; Cenkos if sales-growth targets are hit. BioSeek makes assays based on human 38. cells. Sold by consortium of owners.

Cerion L.L.C., Southfield Intermet Corp., Ft. Worth, $310.0 July Acquired the business of the former Troy-based company through a $13.0 39. Texas bankruptcy sale.

Mitsubishi Steel Manufacturing Co. Meritor Suspension Systems Baker & McKenzie; Blake Cassels & Graydon October Sale of business was part of Troy-based ArvinMeritor's piece-by-piece $13.0 39. Ltd., Tokyo Co. Inc., Hopkinsville, Ky. Mitsubishi UFJ Financial L.L.P. sale of its Light Vehicle Systems division.

Superior Capital L.L.C., Detroit National Archive Publishing Dickinson Wright; Sprock McDonald Hopkins L.L.C.; $30.0 August Sold by National City Bank, which had foreclosed on a loan and had $12.5 Co., Ann Arbor Capital Advisory; PM Bodman L.L.P. taken possession. Company publishes customized higher-education 41. Environmental; Grant course materials and provides microfilm services. Value is estimated Thornton as between $10 million and $15 million.

Sun Capital Partners Inc., Boca Fuel systems and hose $211.0 March Sun Capital purchased the operations following Fluid Routing $11.0 Raton, Fl. extrusion operations of Fluid Solutions' Chapter 11 bankruptcy. 42. Routing Solutions Automotive L.L.C., Rochester Hills Rockbridge Growth Equity L.L.C., Ready Financial Inc., Boise Honigman Miller Schwartz None December Acquired company is a direct-to-consumer financial services $10.0 Livonia and Cohn L.L.P. company. Value given as more than $10 million; exact figure not 43. disclosed.

Circle K, Akron, Ohio Certain assets of Armada Oil W.Y. Campbell September Sold a geographic area of gas stations. $10.0 43. & Gas, Melvindale

Akebono Brake Industry Co. Ltd., Foundation brake business of $580.0 September Deal includes Bosch assets to manufacture corner modules, drum $10.0 Tokyo The Bosch Group, brakes, disc brakes, brake calipers and other components. The deal 43. Farmington Hills affects about 1,600 Bosch employees worldwide, including about 110 at Robert Bosch L.L.C. in Farmington Hills.

Huron Capital Partners L.L.C., Additional equity in Ross Goldberg Kohn; Plante & August Deal also included a recapitalization; value is estimated at more than $10.0 43. Detroit Education L.L.C., St. Clair Moran $10 million.

Source: Company submissions, Crain's research and Bloomberg News. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. The list does not include all 2009 transactions; only transactions valued at $10 million or more are included. 20100125-NEWS--0016-NAT-CCI-CD_-- 1/21/2010 4:44 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 25, 2010 Finance Extra: Big Deals of 2009 Stabenow: Senate won’t hike taxes on VC, equity-firm profits

BY TOM HENDERSON was language by U.S. Rep. Sander members agree on. at the expense of others,” said income. A lot of service providers CRAIN’S DETROIT BUSINESS Levin, D-Royal Oak, to change the “You never know, but I serious- Chris Rizik, CEO and fund manag- invest their time on unsure re- tax rate for private equity firms, ly doubt it,” she said. er of the $40 million Renaissance sults, whether it’s a broker who If Sen. Debbie Stabenow, D-Mich., hedge funds and venture capitalists. The House passed its version by Venture Capital Fund, which invests puts a house on the market and it is right, the U.S. Senate will have a The Senate will take up its ver- a 241-181 vote on Dec. 8, with in venture capital firms. sits there a year, or a waitress who late Christmas sion of the tax bill after health care Michigan’s delegation splitting 8-7 “This was intended for the pri- sets all the tables and then waits to present for those is settled. in favor. Democrats were for the vate equity world, but it picked up a see who shows up.” running venture A rule of thumb for VC and PE bill, Republicans against it. broader class of investors,” he said. Mark Heeson, president of the capital and pri- firms is that they get 2 percent of a Local venture capitalists say if “There are only a couple of thou- Washington-based National Venture vate equity fund up front for such things as the tax rate is changed, it will stifle sand venture capitalists in the coun- Capital Association, said venture firms. salaries and office expenses. They an industry that has had recent try, so it wouldn’t be a big money- capitalists generally take a much Stabenow is pay the ordinary income rate on traction growing what traditional- maker for the government. To take more active hands-on role in run- predicting the salaries. They also pay 20 percent ly has been a very small presence aim at us is peculiar and overreach- ning portfolio companies than oth- Senate will not of the eventual profits, which are in Michigan. ing, especially at a time when we’re er classes of fund managers and go along with a taxed as capital gains, which Local VC firms crowed about trying to advance new technologies shouldn’t face tax changes aimed bill that passed Levin would like to change. their return on investment, for ex- and grow new companies.” at the hedge-fund and private-equi- Stabenow the U.S. House in “I don’t think it’s going to be ample, on the sale of Ann Arbor- Under the house version, those ty industries. December that would more than part of the Senate bill,” Stabenow, based HealthMedia Inc. in 2008 for who invest money in funds would “Everything revolves around double the tax rate on profits made a member of the finance commit- something well north of $100 mil- continue to have their profits jobs right now,” he said, “and by venture capital and private eq- tee that will first take up the bill, lion, and the sale last year of Ann charged at the capital gains rate. we’re one of the few industries out uity firms, from the capital-gains told Crain’s. “While members of Arbor-based HandyLab Inc. for Those running them would not. there right now that can say it is rate of 15 percent to the ordinary- the committee have brought it up, $275 million. “This is a basic issue of fair- creating jobs. And we’re creating income rate of 35 percent. it won’t be part of any bill we “I think the financial meltdown ness,” Levin said. “If you put your exactly the kinds of jobs that The change was part of the Tax pass.” of a year ago made some people own money at risk, you get taxed everyone says we need, clean tech, Extenders Act, which extends and Stabenow said she doubted the look at the financial world general- at the capital gains rate. If you put life sciences and IT.” defines about $31 billion in tax cuts tax change would remain in the fi- ly and punish some people they other peoples’ money at risk, your Tom Henderson: (313) 446-0337, and credits through 2010. Included nal bill that that House and Senate thought were making a quick buck profit should be taxed as ordinary [email protected] Ex-MEDC president plans VC fund Steadfast CFO kept Detroit

BY TOM HENDERSON Three targets he has lined up as he said he will remain in the state CRAIN’S DETROIT BUSINESS possible portfolio companies are and launch his fund whether he companies he first met on over- takes one of those jobs or not. from ‘termination event’ As president and CEO of the seas trips with the MEDC, two in “I’ve lived here 36 years. I Michigan Economic Development Jordan and one in Israel looking want to stay in Michigan. ... I’m BY NANCY KAFFER “We still had cash flow issues, we Corp., James Epolito oversaw to open U.S. operations. not interested in incubating a CRAIN’S DETROIT BUSINESS still had a budget we had to submit, state investment funds and pro- And he wants to be a landlord. company and growing it and we still had a budget elimination jects that He owns the former YMCA having it move to the east or In January 2009, the city of Detroit plan we had to put together, and all helped local building in downtown Lansing west coasts.” came close to financial disaster. that was being done with the con- venture capi- and plans to operate it as an in- “Jim oversaw the most pro- Detroit’s credit rating was down- cern in back of our minds that all tal and private cubator to house at least some of gressive economic development graded by all the major ratings agen- stars had to be in alignment to pull equity firms his portfolio companies. He said authority in the U.S. He is a ball cies — which could have trigger a this off,” Harris said. do their deals. he is in negotiations with three of fire,” said Charles Rothstein, “termination event” in an interest Harris and the city’s attorneys, in- Now he would-be tenants to lease space. co-founder and senior managing rate swap agreement on some city cluding Allen Bass, of counsel at De- wants to be the He has not invested in them. director of Farmington Hills- pension obligation certificates. troit-based Lewis & Munday P.C., quick- dealmaker. “We’re finalizing term sheets based Beringea L.L.C., the state’s In a termination event, the eight ly agreed that with the city’s revenue Epolito is with them, and I’m trying to help largest VC firm. counterparties to the swap could sharing and property and income finishing a them on the venture side to get “Raising a fund takes a lot of have called for an immediate taxes already used as collateral for Epolito business plan some money,” he said. things, particularly resiliency $400 million payment, money the short-term borrowing, casino rev- and hopes to raise a venture capi- Epolito left the MEDC to be- and persistence, and Jim has cash-strapped city didn’t have. enue was the only option. tal fund of $25 million to $50 mil- come president of Okemos-based plenty of both. Rothstein also Working against the clock with But persuading the counterparties lion that would invest in early- Delta Dental of Michigan. Admit- worked with Epolito as a member limited resources, the city’s legal and to take the deal was another matter. stage health care and health care ting it wasn’t a good fit, Epolito, of the boards of the Michigan financial team — led by then-CFO “We knew that the counterparties IT companies. 54, left the company Jan. 6. Strategic Fund and the Venture Joseph Harris — restructured the were bargaining very hard, and we “I’ve wanted to do this for a Epolito said he is being re- Michigan Fund. agreement, pledging casino tax rev- had no idea … if they were going to long time, and I think it’s a good cruited for an upper manage- Epolito is also on the board of enue as collateral take us to court until we reached an time to do it. The whole health ment position “by a couple of in- the National Association of Seed & and increasing the agreement in principle,” Harris care market is going to explode surance companies to come in Venture Funds and helped recruit city’s payment by said. “They were playing hardball, and I want to be part of it,” he and fix them, but I can’t give you that group to Detroit in 2008 for 1.5 percent. and we weren’t willing to accept all said. many details.” its annual convention. If there’s such a of the conditions.” Epolito wants to be an interna- He said one was based in Michi- Tom Henderson: (313) 446-0337, thing as a feat of Had the counterparties taken the tional wheeler and dealer, too. gan and one outside the state, but [email protected] heroic accounting, city to court, there would have been this is it — some- no question about the outcome, Har- thing New York- ris said. based magazine “The judge would in fact agree that The Bond Buyer we owed the $400 million,” he said. Harris Universal Truckload buys three freight companies recognized when it “The question would be, how would gave the city its nontraditional pub- the city pay the $400 million? Would BY BILL SHEA modal, truckload, and less-than- impact to be accretive to earnings lic finance award for 2009, the first we tax the residents for the $400 mil- CRAIN’S DETROIT BUSINESS truckload transportation work. until the second half of the year,” time the newspaper has made the lion and pay them all at once? Would Cavalry will operate as a sub- President and CEO Don Cochran award to a deal that involved restruc- it be paid over years? Would we have Warren-based Universal Truck- sidiary of Universal Truckload. said in the statement. turing rather than new securities. to issue bonds?” load Services Inc. (Nasdaq: UACL) Ⅲ Texarkana, Texas-based TSD The acquisitions are the latest Harris had joined the city as CFO But Harris didn’t back down, Bass said Jan. 14 it had acquired three Transportation, which does for-hire by Universal, which in July during the short-lived administra- said. transportation companies. The freight services. TSD will be inte- bought DeSoto, Texas-based tion of Interim Mayor Ken Cockrel “The counterparties had to under- logistics company said it bought: grated into the operations of heavy-hauling trucking compa- Jr., who took over after former May- stand these critical points: The deal Ⅲ Chicago-based D. Kratt Inter- Louisiana Transportation Inc., a sub- ny Pacer Transport Inc. and two of or Kwame Kilpatrick stepped down we were putting on the table was the national Inc., a full-service inter- sidiary of Universal Truckload. its subsidiaries for $2 million. in September 2008. Harris was re- best deal they could expect, it was national freight forwarding and Universal didn’t reveal terms Universal, which reported placed when Cockrel lost a special foolish to talk about bankruptcy or customs house brokerage firm. but said in a statement the ac- nearly $760 million full-year rev- election to now-Mayor Dave Bing in trying to push the city into bank- It will operate as part of Univer- quistions were not expected to enue for 2008, is owned by May 2009, and Cockrel returned to ruptcy, and that $400 million was sal Logistics Inc., a subsidiary of have a material effect on the Manuel Moroun, who also owns his seat on the Detroit City Council. not in the books,” Bass said. “If Joe Universal Truckload. company’s financials this year. the Ambassador Bridge through As a new CFO, Harris was jug- Harris had wavered, we all would Ⅲ Nashville, Tenn.-based Caval- “They should add about $35 his Detroit International Bridge Co. gling multiple financial emergen- have been lost.” ry Transportation L.L.C. and Cavalry million in annual revenue in 2010; Bill Shea: (313) 446-1626, cies when notice of the potential ter- Nancy Kaffer: (313) 446-0412, nkaf- Logistics L.L.C., which do inter- however, we do not expect their [email protected] mination event arrived. [email protected] 20100125-NEWS--0017-NAT-CCI-CD_-- 1/21/2010 4:37 PM Page 1

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 17 Finance Extra: Big Deals of 2009 Technology to be key in auto-related M&As, survey says

pay for feature upgrades even on Ford increase market share in Eu- Potential for new products becomes top priority lower-segment cars. rope and the United States, said “Product innovation has over- KPMG’s Silberg. BY LINDSAY CHAPPELL “New technology is primarily gy, especially in electronics. taken product quality in the indus- The KPMG survey also captures CRAIN’S DETROIT BUSINESS driven in the powertrain,” Silberg “We’re seeing a reversal of that try’s sense of urgency,” she said. a shift in attitude toward Ford. said. “Manufacturers are working now. General Motors, Nissan, Ford, “That’s partly because the au- One year ago, executives were As the auto industry emerges on hybrids, electrics, clean diesels, Toyota and the Germans are all say- tomakers have improved their asked which automakers would from two straight years of punish- natural-gas vehicles, fuel cells and ing that these new systems are quality so much over the past capture additional market share ing results, its leaders are reciting solar cells. core technologies.” decade. But we’re also seeing an over the coming five years. At the a new mantra: technology. “In many cases, those technolo- Meter said other technologies opportunity coming up for manu- time, only 13 percent listed Ford Auto executives around the gies are being developed in house. also are stirring the industry. Ve- facturers to improve their market among the gainers. In this year’s world say new vehicle technolo- In past years, automakers showed hicle electronics, such as Ford’s share and also their cost picture survey, 29 percent said they expect gies will dominate the industry for that they were willing to rely on voice-response Sync system, have through product innovation.” Ford to gain share. several years. suppliers for a lot of new technolo- signaled that buyers are willing to Such innovation has helped From Automotive News They also say product technologies will be a key influence in the next wave of corporate mergers and acquisitions. The second-most important motivator behind M&As will be how such pairings improve the ability to deliver technology, according to KPMG’s 11th annual survey of 200 senior executives, released earlier this month. KPMG found that 85 percent of those surveyed think new technologies will be the most important issue facing the global auto industry for the next 12 months. Select 2009 Transactions The No. 2 issue: developing new products to go with the new technologies. The survey, conducted last fall, is not necessarily an indicator of what will happen. But it does indicate what occupies the minds of global decision makers as the industry tries to shake off the recession. The increased buzz over technology this year is noteworthy because it eclipses two of the industry’s great management obsessions of the past two decades: cutting costs and improving quality. “In the recent past, the hot button was cost reduction,” said Gary Silberg, KPMG’s national automotive industry leader. “We’ve wit- nessed a lot of rationalization across the industry — the shutting of plants, lower parts costs, the push for better efficiency and reduced head count. “But that hunkering-down men- tality is changing. The emphasis going forward is on getting new products to market.” Finances, of course, remain a Lundberg & Associates concern during this recession. Survey respondents said the most has sold a stake in important factors in mergers and acquisitions will be debt and bank- eTitle, Inc. ruptcy, which were not among the

top three considerations in last to year’s survey. Betsy Meter, KPMG’s automotive industry audit leader, said ex- Backman Title Services pectations about merger and acquisition activity last year were not realized in 2009 because of the crash in capital markets. There simply was no financing for deals Investment Banking Services: Industry Specializations: Please contact: last year. • Mergers and Acquisitions • Business Services Meter said the survey indicates Phil Gilbert that as the economy comes back, • Sales and Divestitures • Healthcare Services 248.223.3326 some companies will be making up for lost time — especially given the • Capital Transaction Planning • Industrials [email protected] financially vulnerable position of • Fairness Opinions • Life Sciences Matt Jamison some acquisition targets. She said companies appear to be • International Transaction • Plastics and Packaging 248.223.3368 more focused now on picking part- Advisory [email protected] ners based on their technological promise rather than gains in cost savings or access to new customers. Alternative vehicle power sys- Detroit • Chicago • pmcf.com tems are central to that focus on technology and getting products to market. 20100125-NEWS--0018-NAT-CCI-CD_-- 1/21/2010 4:35 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 25, 2010 Finance Extra: Big Deals 2009 CRAIN'S LIST: INDUSTRIAL LEASES Ranked by square feet

Rank Building Asking rate Owner Tenant Broker Square feet 1. 24400-24500 Glendale, Redford Township B $3.50 Pinnacle Commerce Center Technicolor of Michigan Signature Associates 393,940

2. 17950 Dix-Toledo, Brownstown Township $3.95 Ashley Capital Comprehensive Logistics Grubb & Ellis, CB Richard Ellis 390,659

3. 36663 Van Born Road, Romulus $3.95 Ashley Capital Bay Logistics Signature Associates 345,351

4. 20501 Pennsylvania, Brownstown Township $3.50 Ashley Capital The Butcher Engineering Enterprises Ltd. none 334,358

5. 13600 Fullerton, Detroit $3.85 Ashley Capital Progressive Distribution Centers CB Richard Ellis 316,356

6. 39000 Seven Mile Road, Livonia $5.50 Sterling Group A123 Systems Signature Associates, Grubb & Ellis 291,000

7. 38100 Ecorse Road, Romulus $4.60 C Welsh Cos. A123 Systems Grubb & Ellis 287,000

8. 42050-42200 Executive Drive, Harrison Township $4.67 C Blankenburg Co. L.L.C. AMP Innovative Technologies L. Mason Capitani 221,977 9. 19881 Brownstown Center Drive, Brownstown $3.95 Ashley Capital Lear Corp. CB Richard Ellis 215,382 Township 10. 41873 Ecorse Road, Belleville $4.25 Ashley Capital Excel Inc. Grubb & Ellis 187,876

11. 32500 Van Born Road, Wayne $4.79 Metro Commerce Center L.L.C. Computer Sciences Corp. Jones Lang LaSalle, NAI Farbman 185,000

12. 41580-41610 Joy Road, Plymouth Township B $4.65 Falcon Center Properties L.L.C. Plastipak Packaging Inc. Signature Associates 175,483

13. 6307 W. Fort St., Detroit B $3.50 Fort Street Business Park Progressive Distribution Systems Signature Associates 170,000

6401 W. Fort St., Detroit $2.92 C Arvin Meritor Inc. Ohio Module Manufacturing Co. Plante & Moran Cresa, CB Richard 167,410 14. Ellis 15. 20001 Brownstown Center Drive, Brownstown $3.95 Ashley Capital General Motors Co. Grubb & Ellis, Jones Lang LaSalle 166,144 Township 16. 12800 Oakland Park Drive, Highland Park $3.05 C Stewart Frankel Development Co. Magna Seating North America Colliers International 150,000

17. 41775 Ecorse Road, Belleville $4.25 Ashley Capital AEL Span L.L.C. none 146,255

18. 10725 Harrison, Romulus $4.65 J.B. Management Cardinal Health Colliers International 136,500

1400 Rochester Road, Troy $3.50 Bostick Enterprises Axletech International L.L.C. Signature Associates, Colliers 135,219 19. International 20. 21439 Hoover Road, Warren $4.67 C NL Ventures VI Hoover L.L.C. Giffin Inc. Grubb & Ellis 120,000

21. 36501 Van Born Road, Romulus $4.15 Ashley Capital Bay Logistics Signature Associates 119,626

22. 1100 E. Mandoline Ave., Madison Heights $4.67 C First Industrial Realty Trust Product Development Grubb & Ellis 117,903

23. 27501 Hildebrandt Road, Romulus $4.60 C Distriplex Metro One Nippon Express Colliers International 115,000

24. 51400 Bellestri Court, Shelby Township $4.67 C C & Son L.L.C. Models & Tools Inc. Grubb & Ellis, Kwekel Co. 114,995

25. 9000 General Drive, Plymouth Township B $5.25 Falcon Center 2 L.L.C. Absopure Water Co. Signature Associates 110,000

26. 28100 Plymouth Road, Livonia $3.95 Ashley Capital NYX Inc. none 108,868

27. 31750 Enterprise Drive, Livonia B $3.99 DJS Holdings Inc., GE Capital Realty KRC Inc. Grubb & Ellis 107,545

28. 14239 Frazho, Warren $4.50 Ashley Capital Lipari Foods Grubb & Ellis 106,000

29. 41133 Van Born Road, Romulus B $4.85 BPW Exchange Owens & Minor Signature Associates 105,840

30. 26980 Trolley Drive, Taylor B $3.25 First Industrial Realty Trust Angstrom-USA Signature Associates 102,400

31. 31220 Oak Creek Drive, Wixom B $4.60 U.S. Real Property L.L.C. SABIC Innovative Plastics L.L.C. Signature Associates 99,760

32. 18640 Dix-Toledo Road, Brownstown Township $4.50 Ashley Capital Transfreight L.L.C. CB Richard Ellis 96,882

33. 6700 E.14 Mile Road, Warren $3.95 Lenakona Development Michigan Portable Storage Grubb & Ellis 90,000

14275 Frazho Road, Warren $4.15 Ashley Capital Yanfeng Visteon Jinqiao Automotive Trim Systems Grubb & Ellis, CB Richard Ellis 80,768 34. Co. 35. 1100 E. Mandoline, Madison Heights $5.75 First Industrial Realty Trust Design Fabrications Inc. Signature Associates, CB Richard Ellis 78,013

36. 11101 Metro Airport Center Drive, Romulus B $5.25 IAC Detroit-MAC II Expeditors International Signature Associates 70,993

37. 1120 John A. Papalas Drive, Lincoln Park $5.25 First Industrial Realty Trust NES Real Estate Management Inc. Signature Associates 65,010

38. 6333 Lynch Road, Detroit $3.50 Lynch Road Business Park Waste Management of Michigan Inc. Signature Associates 63,300

39. 5775 Brighton Pines Court, Howell $5.61 C 5775 Brighton Pines Court L.L.C. CRW Plastics Plante & Moran Cresa 61,535

40. 13600 Fullerton St., Detroit $3.00 Ashley Capital Uncle Ray's L.L.C. Signature Associates 60,841

41. 36501 Van Born Road, Romulus $3.50 Ashley Capital United States Postal Service Signature Associates 59,984

42. 1935-1955 Enterprise Drive, Rochester Hills B $7.50 First Industrial Realty Trust Magna Electronics Inc. Signature Associates 53,400

43. 41873 Ecorse Road, Belleville $4.25 Ashley Capital LaGasse Inc. Jones Lang LaSalle 52,794

14903 Pilot Drive, Plymouth Township $5.81 C Demco 32 L.L.C. Hayden-McNeil Plante & Moran Cresa, Signature 50,740 44. Associates 45. 32500-32501 Van Born Road, Wayne B $5.00 C Metro Commerce Center L.L.C. Childers Print and Graphics Group Inc. Signature Associates, NAI Farbman 50,000

46. 2871 Research Drive, Rochester Hills $5.39 C First Industrial Realty Trust Coastal Fabricating L.L.C. Signature Associates 49,500

47. 6515 Cobb Drive, Sterling Heights B $4.67 C First Industrial Realty Trust Transpak Inc. none 47,600

48. 32505 Industrial Drive, Madison Heights $4.67 C First Industrial Realty Trust Powertrain Integration L.L.C. Grubb & Ellis 47,000

49. 1100 E. Mandoline Ave., Madison Heights B $4.67 C First Industrial Realty Trust Xerox Corp. Jones Lang LaSalle 41,300

50. 29149-29165 Airport Drive, Romulus B $4.60 C First Industrial Realty Trust Excel Inc. Grubb & Ellis 33,400

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 19 Finance Extra: Big Deals of 2009 CRAIN'S LIST: OFFICE LEASES Ranked by square feet

Square Rank Building Asking rate Owner Tenant Broker feet 1. 1 Village Center, Van Buren Township $22.50 B Visteon Corp. General Electric CB Richard Ellis, Jones Lang LaSalle 242,228 2. Dearborn Town Center, Dearborn $20.72 B Dearborn Schaefer Office Co. L.L.C. Oakwood Healthcare Inc Redico L.L.C. 103,106 3. Renaissance Center Tower 500, Detroit C $23.00 General Motors EDS Hines 97,239 4. 200 Galleria Officentre, Southfield C $19.50 Galleria Properties L.L.C. Global Crossing Telecommunications Inc Signature Associates 91,680 5. 18000 W. Nine Mile Road, Southfield $14.20 B Franklin Street Properties IBM Grubb & Ellis, Jones Lang LaSalle 83,209 6. 750 Stephenson Highway, Troy $17.50 EA&S Investments L.L.C. Beaumont Core Partners 80,000 7. 23777 Southfield Road, Southfield $14.20 B Schoolhouse Finance L.L.C. Edison Oakland Public School Academy Friedman Real Estate Group 78,000 8. 211 W. Fort St., Detroit $19.50 211 Fort Washington Associates L.L.C. General Services Administration Jones Lang LaSalle, Klugman Commercial Properties 74,387 9. 25510 W. 11 Mile, Southfield C $15.00 Griffin Capital Auto Club Services Signature Associates, Transwestern Co. 66,195 10. 100 Galleria Officentre, Southfield $13.47 Citigroup North America Inc The LOGS Group L.L.C Grubb & Ellis, Steinco Inc. 61,794 11. Renaissance Center Tower 400, Detroit D $23.00 General Motors Co. Urban Science Newmark Knight Frank, Hines 59,820 12. 1000 Town Center, Southfield D $21.61 Blackstone Group Microsoft Corp. Jones Lang LaSalle 57,364 13. 901 Wilshire, Troy $19.50 Summit Properties Care Tech Solutions Plante Moran CRESA 57,000 14. Raleigh Officentre, Southfield $20.47 Kojaian Management Corp. Sedgwick Claims Management CB Richard Ellis 56,878 15. 2500 Green Road, Ann Arbor $21.00 Green Road Investments ForeSee Results Core Partners 55,000 16. 51111 Woodward Ave., Pontiac $14.95 Northbay Drywall Inc. Trust State of Michigan Jones Lang LaSalle, Hayman Co. 47,200 17. 26911-26957 Northwestern Highway, Southfield $17.50 Phoenix Asset Management United HealthCare Services Signature Associates, Jones Lang LaSalle 46,903 18. 38900 Hills Tech Drive, Farmington Hills $23.80 B FCBII L.P. North American Lighting Inc. Newmark Knight Frank 45,043 19. 5210 S. State Road, Ann Arbor $15.00 S & N Development L.L.C. Xoran Technologies Bluestone Realty Advisors 45,000 20. 2285 Franklin Road, Bloomfield Hills C $16.95 Ambrose Properties L.L.C. Macquarie Holdings Grubb & Ellis 43,689 21. 8625/8655 Greenfield Road, Detroit $17.25 B Apollo Holdings L.L.C. State of Michigan Jones Lang LaSalle 43,433 22. 5607 New King St., Troy C $16.81 Gateway Lewis L.L.C. Henry Ford Health Systems CB Richard Ellis 41,503 23. 977 E. 14 Mile Road, Troy $18.38 B Investment Grade Loans L.L.C. Hanson's Window and Construction Inc. L. Mason Capitani, Signature Associates 40,000 24. 1633 Fairlane Circle, Allen Park $13.23 B Ford Land Oakwood Home Services NAI Farbman 38,560 25. 12220 E. 13 Mile Road, Warren C $21.18 B Milford Singer & Co. Campbell-Ewald Jones Lang LaSalle 38,500

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Page 20 CRAIN’S DETROIT BUSINESS January 25, 2010 Finance Extra: Big Deals of 2009 CRAIN'S LIST: OFFICE LEASES Ranked by square feet

Continued from Page 19 Square Rank Building Asking rate Owner Tenant Broker feet 26. 2025 Concept Drive, Warren $5.50 Crown Enterprises ManTech Telecommunications Signature Associates 38,087 27. 2230 Mall Drive E., Waterford $18.86 B Summit North Investments Oakland Schools Core Partners 36,603 28. 17501 Michigan Ave., Dearborn C $20.72 B Ford Land United Airlines Jones Lang LaSalle 35,800 29. 4729 Conner, Detroit $17.25 B Conner-Chene Properties State of Michigan Jones Lang LaSalle 34,100 30. 1168 Oak Valley Drive, Ann Arbor C $14.00 Valley Ranch Business Park 4/5 L.L.C. Rovi Corp. Signature Associates 33,600 31. 26261 Evergreen Road, Southfield $21.54 B Evergreen Atrium L.L.C. Apollo Group Newmark Knight Frank 33,248 32. 2120 Austin Drive, Rochester Hills $6.35 General Development Saturn Electronics & Engineering Signature Associates 33,124 33. 300 E. Big Beaver, Troy $15.45 Osprey-Troy Officentre L.L.C. Dialogue Marketing Friedman Real Estate Group 32,199 34. 26355 Michigan Ave., Inkster $17.81 B Boji Group State of Michigan Jones Lang LaSalle 32,100 35. 50 W. Big Beaver Road, Troy $21.00 Liberty Investments L.L.C. Micro Focus Inc. Thomas A. Duke & Assoc., CB Richard Ellis 32,009 36. 25637 Ecorse Road, Taylor $14.88 B Provisions State of Michigan Jones Lang LaSalle 31,000 37. Seven Mile Crossing, Livonia $22.50 Kojaian Management Corp. Workforce Software Signature Associates 30,108 38. 12140 Joseph Campau St., Hamtramck $17.81 B Boji Group State of Michigan Jones Lang LaSalle 30,000 39. 2401 Walton Boulevard, Auburn Hills $11.00 Opdyke Walton Development Co. L.L.C. Easter Seals - Michigan Inc. Signature Associates, Colliers International 29,230 40. 24251 Acacia, Redford Township $17.81 B Gershman Properties L.L.C. SEIU Member Action Service Center Jones Lang LaSalle 28,941 41. 777 E. Eisenhower, Ann Arbor $25.00 Transwestern Co. Thomson Reuters Healthcare Cushman & Wakefield, Transwestern Co. 28,481 42. 17411 Grand River Ave., Detroit $17.25 B Provisions State of Michigan Jones Lang LaSalle 28,100 43. 20000 Victor Parkway, Livonia $22.00 Realty Development Co. L.L.C. InfoTronics Signature Associates, Grubb & Ellis 26,500 44. 25650 W. 11 Mile Road, Southfield $15.00 Griffin Capital Auto Club Services Signature Associates, Transwestern Co. 26,471 45. 1660 Opdyke Road, Auburn Hills $7.50 The Levine Group Inc Bourns Inc. Signature Associates, Skyline Properties 25,712 46. 500 Woodward Ave., Detroit C $24.50 i-Star Financial Bank of America Jones Lang LaSalle 25,506 1650 Research Drive, Troy $16.95 Troy Industrial L.L.C. Dayco Products L.L.C. Signature Associates, Paragon Corporate Realty 25,124 47. Services 48. 500 Woodward Ave., Detroit $24.50 i-Star Financial Merrill Lynch Signature Associates, Jones Lang LaSalle 25,068 34505 W.12 Mile Road, Farmington Hills $23.80 B Arboretum Properties Phase II Priority Health Managed Benefits Inc. Newmark Knight Frank, Waters Tenant 24,564 49. Representation L.L.C. 50. 30400 Telegraph Road, Bingham Farms $16.95 Burton-Katzman Arden Cos. Signature Associates, Colliers International 24,436

List is based on information from CoStar Group Inc., Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been omitted. Some leases were omitted because of a lack of complete information. B CoStar submarket average. C Lease renewal. LIST RESEARCHED BY DANIEL DUGGAN Mission Secret! Can you keep a Secret? We can. Our Trade Secret, Non- Compete and Unfair Competition Practice attorneys are on a mission to help your business Watch our live webcast safeguard its from your computer! trade secrets. In fact, we have Safeguarding Your a three-step Market Share and process to Trade Secrets secure your Don’t be tomorrow’s headline regarding the loss company’s of your company’s assets assets. Thursday We are on a January 28, 2010 mission to keep your trade Noon to 1:00 p.m. EST EXCELLENCE secrets a secret. Call 1.800.847.6424 to RSVP by design Attorneys on a Mission® Your mission is our mission. We never lose sight of it.

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January 25, 2010 CRAIN’S DETROIT BUSINESS Page 21 Finance Extra: Big Deals of 2009

CRAIN'S LIST: LOCAL SALES Ranked by price Other sales

Square feet deals of note number of Price Rank Building Buyer Seller Broker/advisers units ($000,000) Several noteworthy real estate sales from 2009 University of Michigan Pfizer Inc. Jones Lang LaSalle 177 acres $108.0 1. 2800 Plymouth Road, Ann Arbor were under $3 million: 2. 8301 Enterprise Drive, 16630 Southfield City of Allen Park Danou Enterprises Inc. Signature Associates 525,000 and $24.8 950 Stephenson Road, Allen Park 50 acres Highway, Troy: The 72,000-square-foot build- 3. Former Kmart HQ - 3100 W Big Beaver, Troy Forbes/Frankel Troy Ventures Blackstone Group CB Richard Ellis 906,000 $18.0 ing was sold by the DuPont Co. for $2.2 mil- 1301 W. Long Lake, Troy Soverign Partners, New York Transwestern Co. Transwestern 170,000 $12.3 4. lion, after being marketed for more than a year, to In- 5. 26090 23 Mile Road, Chesterfield Township Chesterfield Real Esate Cadence Innovation L. Mason Capitani 714,000 $10.0 dus Properties L.L.C. Bro- 6. 160 E. Congress, Detroit 160 Parking L.L.C. Bank of America NAI Farbman 308,280 $7.2 kers: CB Richard Ellis, Core Partners L.L.C. 7. 151 Lafayette, Mt. Clemens Metro International Trade Services Russo Properties Signature Associates 674,432 $7.0 Pontiac Silverdome: Under contract to be sold 8. 6041-6199 Haggerty Road, West Bloomfield West Bloomfield Shoppes L.L.C. Seligman & Assoicates Beale Group 58,000 $6.1 for $585,000, it was built in 1975 for $55.7 million. 333 Maynard St., Ann Arbor Arthur Fritz Jr. Lorne J. Daniel & Associates NA 30,000 $5.5 9. It is to be sold by Pontiac to Triple Properties Inc., 10. Riverside Center, 25925 Telegraph, Southfield Farbman Acquisitions L.L.C. MEPT Riverside CB Richard Ellis, NAI Farbman 194,386 $5.0 Toronto. Broker: CB 10. 300 N. Zeeb Road, Ann Arbor Zeeb Road Holdings L.L.C. National Archive Publishing NA 165,000 $5.0 Richard Ellis. Lear Corp. buildings, 12. Farmington Hills Corporate Campus, Farmington Greenpath Kojaian Management Corp. Signature Associates 10.56 acres $3.7 B Dearborn: Three build- Hills ings, totaling 450,000 13. 5500 Crooks, Troy Park Avenue Investment Advisors, Lodgian Inc., Atlanta Jones Lang LaSalle 191 rooms $3.0 square feet, were sold by New York Lear to a local doctor for List is based on information from CoStar Group Inc., Real Capital Analytics, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in less than $2 million, or a transaction, but in some cases brokers may have been omitted. only $4 per square foot. B Crain's estimate. Broker: Signature Associ- LIST RESEARCHED BY DANIEL DUGGAN ates.

Detroit January 2010 Pittsburgh Toronto

Huron Finishes a Strong 2009

Huron Capital Partners ended 2009 with a robust fourth quarter after acquiring Landes Trucking, Inc. through its new platform company, Cardinal Agri-Logistics. Landes is a leading provider of transportation and logistics services to agricultural processing companies and food manufacturers. The company transports a variety of bulk vegetable oils, tropical oils, and syrups to food manufacturing plants throughout the Midwest. Huron Capital recapitalized the business in partnership with the existing management team to position the company for future growth.

HURON CAPITAL PARTNERS LLC

PLATFORM INVESTMENT CRITERIA TRANSACTION TYPES

Revenues $20 million to $200 million Buyouts Buy & Build EBITDA $3 million to $20 million Recapitalizations Growth Initiatives Equity per Deal $10 million to $70 million Family Successions Corporate Spin-offs

www.huroncapital.com 500 Griswold Street, Suite 2700 I Detroit, Michigan 48226 I Tel: 313.962.5800 225 Ross Street, 5th Floor I Pittsburgh, Pennsylvania 15219 I Tel: 412.201.7040 100 King Street West, 37th Floor I Toronto, Ontario M5X 1C9 I Tel: 416.234.0313 20100125-NEWS--0022-NAT-CCI-CD_-- 1/21/2010 4:18 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 25, 2010

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

EMPLOYMENT CALENDAR Help for Walsh College hosts pay $15 for the career fair and Resolution Consortium, is holding The workshop will be held from game. Cost is $25 after Friday. a free workshop for those who 6-8 p.m. Wednesday at the college job search workshop Cost for the fair, game and the want to meet instructors and learn at 18600 Haggerty Road in Livonia. job seekers Walsh College is offering a free Q&A is $25. There is a $5 discount more about Schoolcraft’s conflict For more information about the for Michigan Jobs and Career workshop on job search strate- resolution certificate training pro- workshop, contact Lauren Mur- Portal and Michigan Works ap- phy at (734) 462-4448 or lmur- areerWorks is a weekly gies Feb. 23 from 1-4:30 p.m. in gram and the career employment plicants. Additional game tickets [email protected]. collection of advertis- Room 199 at the Troy campus, outlook. are available for $20. Deadline to C ing, news and informa- 3838 Livernois. order is Feb. 12. tion geared toward readers in Topics include résumés and For more information or to career transition or looking cover letters, business careers, register, contact Cassie Wilkin- for new jobs. interviewing, networking and son at (248) 371-2030 or cwilkin- Included in our coverage: using LinkedIn. [email protected]. CareerTransition “CareerTransition,” high- For more information and to Registration also available lighting a person who has register, go to www.walshcol- through the Michigan Jobs and Name: Richard Spicko, 46. made a successful leap from lege.edu/takecharge. Career Portal at www.michi- Education: Bachelor’s degree from Lawrence gan.gov/careers. one profession to another; a Technological University. calendar of job- and training- Career fair and a Pistons game Last career: Spicko spent 10 years at Ann Ar- bor-based ProQuest, an information and tech- related events; and news sto- The Detroit Pistons 10th annual Learn about conflict resolution nology company where he served as a software ries affecting the job market. Career Fair brings together indus- certificate, jobs outlook engineer. Before that, he spent two years work- CareerWorks is also online. try leaders in pro sports, college ing for Dexter-based Creative Solutions in the On our Web site, at athletics, minor leagues, sports Schoolcraft College, in conjunc- tion with the Alternative Dispute same capacity. Most recently, Spicko split his www.crainsdetroit.com/ marketing companies, broad- time between freelance Web building and sell- careerworks, you can post an casting organizations and more. Representatives from more than ing real estate. anonymous résumé and at- CAREER CALENDAR GUIDELINES New career: Owner of Zuma Coffee House in tract employers. You can 30 sports and entertainment or- Richard Spicko ganizations will be at the fair, to Birmingham. Spicko works behind the scenes scan the newest jobs from our Hosting a job fair, holding a Former career: be held from 1-5 p.m. Feb 16 at the handling purchasing, accounting, and market- seminar on starting a business Software engineer area or all of Michigan. You Palace of Auburn Hills. or résumé writing, or helping job ing strategy at the coffee shop and café. New career: can set up e-mail alerts so Attendees also may sit in on an seekers in some other way? Why did you decide to change careers: “I have Coffee shop owner whenever a job that interests executive panel question-and-an- E-mail announcements to Gary always had an entrepreneurial spirit. I always you is posted, you’ll know swer session from 11:30 a.m.-12:30 Piatek at [email protected] or fancied the idea of starting a company. Things about it. p.m. and enjoy a Pistons game at Jeff Johnston at were so tumultuous in the software and IT in- [email protected]. Events dustries that my wife and I felt it mitigated the Employers can post jobs or 7:30 p.m. should be focused on helping a search résumés for talent Register before Friday and job seeker find employment and risk of starting our own business. The combi- they seek. submit a one-page résumé to be be open to the public or to nation of the depressed economic climate and placed in a résumé book for all alumni of a college. the tough corporate climate was just as risky the attending organizations, and as starting our own business. “It used to seem scary to open a business, but all the risk in staying where we were was just as great. “We also recently adopted two children from CAREER MOVES Guatemala and realized the corporate life was- n’t too great for raising kids.” How you made the transition: Spicko and his FINANCE MANAGEMENT MANAGEMENT wife, Lisa, shopped for businesses before decid- CEO Wanted for Credit Card Processing Company ing to open a coffee shop. Spicko said he was Seeking experienced professional with Chief Executive Officer Executive Director – Temple Beth El drawn to the coffee shop idea because he liked strong market and operational knowledge. The Women’s Caring Program is a 501©(3) Michigan Bloomfield Hills [email protected] the feel and community aspect and found one public foundation that provides quality childcare and Reporting to the Board of Trustees, the Executive for sale in what he considers a perfect location Director is responsible for the management and early childhood education to disadvantaged children operations of the Temple and its Cemetery. In this in downtown Birmingham, next to the Palladi- Call or email today for information through its signature program, ChildCare role, the Executive Director is the secular interface um theater. Commitment. The CEO will provide overall between the Temple and the Congregation. The on a custom advertising plan! ideal candidate has excellent interpersonal skills “With us both being in the corporate world leadership for organizational development, oversight with demonstrated skills in supervising for so long with no kids, we were able to save a maintenance and administrative staffs and in the and fundraising. Fundraising and management development, implementation and management of nest egg that wasn’t all devastated by the stock [email protected] experience necessary. For additional information and systems and processes. market. 313.446.6068 full job description, please visit In this role, the "Executive Director” works closely “We decided we had what we needed to make www.WomensCaringProgram.org. with Clergy, and the directors of the Religious and a run of it for a couple of years, so after some Nursery Schools to ensure cohesive relations and to provide quality service in areas such as human due diligence, we took over the location. It was resources, administration and maintenance, about as smooth a jump as it could be, being supervises the operations and maintenance of the Temple’s Cemeteries, supervises the how big of a change it was.” administration of the Temple including such Obstacles overcome: “The biggest obstacle for functions as finance, information technology, human resources, public relations, risk me to overcome was the learning curve. This is management and member services, and my first time in the food industry and owning a supervises maintenance of the Temple’s buildings and grounds. business,” Spicko said. Although Spicko had limited experience in the restaurant industry, Salary and benefits commensurate with experience. Send resumes to George Stern at he reached out to other small-business owners [email protected]. for advice. “I guess just overcoming the fear of the un- known was the hardest challenge.” Call Us For Personalized Advice for others: “Make sure you have the Service: (313) 446-6068 money to lose. I hate to be cliché, but hope for the best, plan for the worst and be prepared for FAX: (313) 446-1757 things to not work out. Look at the statistics E-MAIL: [email protected] and understand your risk.” INTERNET: If you have made a similar change in your www.crainsdetroit.com/section/classifieds career or know of someone who has made an in- See teresting career transition, contact Andy Crainsdetroit.com/Section/Classifieds Chapelle, managing editor at Crain’s Detroit for more classified advertisements Business, at [email protected]. 20100125-NEWS--0023-NAT-CCI-CD_-- 1/21/2010 4:17 PM Page 1

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 23

PEOPLE EDUCATION leader of pharmaceutical litigation, REAL ESTATE SERVICES N THE SPOTLIGHT Dykema Gossett P.L.L.C., Detroit, re- Anita Schnars to director of training I maining member. Harry Cohn to director of leasing and Robert Kenefick to new account ser- and organizational development, East- Farmington Hills-based Level One new business development, Broder & ern Michigan University, Ypsilanti, vices manager, Re-Source Partners Bank has named David Walker Sachse Real Estate Services Inc., from global training and development Asset Management Inc., Clinton executive vice Birmingham, from vice president and manager, Federal-Mogul Corp., South- president and Township, from project manager, field. CFO. He’ll be director of retail brokerage, Friedman responsible for Real Estate Group L.L.C., Farmington Sprint Nextel Corp., Farmington FINANCE all treasury, Hills. Hills. David Stephens to accounting, senior strategy finance, consultant, North- investments, asset/liability ern Trust Bank, management Ortiz Plemmons Grosse Pointe IT, real estate Farms, from pres- and bank Francis Ortiz and James Plemmons to Are your clients ident and CEO, St. Walker security. practice department manager, Dickin- John Hospital and Walker, 49, had been group vice son Wright P.L.L.C., Detroit, remain- Medical Center, president of GMAC in Detroit. ing attorney; also, Cynthia Moore to high strung? Warren. He replaces Dan Davis, who practice department manager, Bloom- Let us entertain them. Stephens Jeffrey Phillips to accepted a position in Florida. field Hills, remaining attorney. principal, He has a bachelor’s degree in Michael Donnelly to vice president of Rehmann Finan- applied mathematics/economics board of directors, Fraser Trebilcock Complimentary concierge planning. cial Group L.L.C., from Brown University and an MBA Davis & Dunlap P.C., Lansing, remain- Entertainment, events, meetings and more. Troy, from senior with distinction from the University ing managing shareholder, Detroit. manager. of Michigan. Jacob Drouillard to partner, Honigman R. Austin Marks to Level One Bank operates branches Miller Schwartz and Cohn L.L.P., De- manager, in Farmington Hills, Novi and troit, from associate attorney, Win- Cendrowski Cor- Wixom. ston & Strawn L.L.P., Chicago. the porate Advisors L.L.C., Bloomfield wald Cos., Birmingham, from vice NONPROFITS cultural Hills, from senior president of risk management, Alliant Phillips associate. Insurance Services Inc., Birmingham. Cheryl concierge Beauchamp to Theodore Nittis to risk management a program of the cultural alliance program director, counselor and senior consultant, Os- HEALTH CARE of southeastern michigan, Special Dreams a 501(c)(3) organization Denise Bajer to Farm Inc., New administrative di- Baltimore, from PEOPLE GUIDELINES rector of emer- AmeriCorps Vista gency depart- Announcements are limited to member, ment, DMC Lenawee Commu- www.theculturalconcierge.org management positions. Nonprofit Sinai-Grace Hospi- and industry group board nity Foundation, 248.766.5599 [email protected] tal, Detroit, from Beauchamp Tecumseh. appointments can be found at emergency de- www.crainsdetroit.com. Send partment nurse submissions to Departments, manager, Henry Crain’s Detroit Business, 1155 Bajer Ford Macomb Gratiot Ave., Detroit, MI 48207- Hospital, Warren. 2997, or send e-mail to [email protected]. LAW Releases must contain the person’s Steven Sallen to name, new title, company, city in president and which the person will work, former CEO, Maddin, title, former company (if not Hauser, Roth & promoted from within) and former Heller P.C., South- city in which the person worked. field, from share- Photos are welcome, but we cannot holder. guarantee they will be used. Kevin Zielke to Sallen practice group 20100125-NEWS--0024-NAT-CCI-CD_-- 1/21/2010 4:15 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS January 25, 2010

BUSINESS DIARY CALENDAR

CONTRACTS ist, was contracted by the Dwyer EXPANSIONS Group, Waco, Texas, to develop a new TUESDAY Sunset Malibu, Malibu, Calif., an ad- ServPro of Dearborn Heights MEET CRAIN’S 2009 site analysis report, a Web-based ap- diction recovery rehabilitation com- North/East Garden City, Dearborn JAN. 26 plication for the Mr. Rooter franchise pany, has selected advertising agency Heights, a franchise of ServPro Indus- NEWSMAKERS OF THE YEAR network. Homeownership and Housing Finance Western Creative Inc., Redford Town- tries Inc., Gallatin, Tenn., has opened in America. 11:30 a.m.-1:30 p.m. Detroit Blue Cross Blue Shield of Michigan, Crain’s Detroit ship, as its agency of record. for business offering fire and water Economic Club. With Ed Haldeman, Business will 118 Interactive Design, Oak Park, a Detroit, has added the University of cleanup and restoration services. CEO, Freddie Mac. Westin Hotel, Michigan Health System, Ann Arbor, honor our global digital agency, has joined with Telephone: (313) 228-5134. Southfield. $45 members; $55 guests; 2009 Webar, Argentina; Digiworks, Mexico to its network of Medicare Plus Blue $75 nonmembers. Contact: (313) 963- PPO providers. Newsmakers of City; and The Big Canvas, Australia MOVES 8547; e-mail: [email protected]; the Year — Web site: www.econclub.org. and Singapore, to form the 118 Inter- Frank Rewold and Son, Rochester, has North American Bancard, an electron- Detroit Mayor active Design Global Partner Agency been awarded the contract to act as ic transaction processing company, Dave Bing and Network. The four companies will construction manager for Southfield- from Chicago Road to 250 Stephenson N3 Lunch & Learn Forum. 11:30 a.m.-1 Robert Bobb, partner to produce regional and global based Presbyterian Villages of Michi- Highway, Troy. Web site: www. p.m. Southfield Area Young Profes- emergency digital solutions for their clients. Web gan on The Village of East Harbor nabancard.com. sionals Committee; Southfield Cham- financial site: www.118interactivedesign.com. Chapel. Avripas Construction Manage- ber of Commerce N3 Committee. With Bing manager of AutoBeat Group Inc., Bloomfield Hills; ment Co., Rochester, is providing pro- NEW PRODUCTS Brenda Lawrence, mayor, City of Detroit Public Michigan Security Network, Royal ject management. Southfield. A place for young profes- Mist Innovations Inc., Detroit, a devel- Schools — on Oak; On-Site Specialty Cleaning and Utica Steel Inc., Chesterfield Town- sionals to network with peers. Com- oper of network monitoring devices Feb. 10 from Restoration, Fraser; and Studio 2 Den- ship, has been awarded the structural fort Suites of Southfield. $17, includes and security products, has unveiled noon-1:30 p.m. tal Design, Kentwood, have retained steel package by Walbridge Aldinger lunch. Contact: (248) 557-6661; e-mail: MISTonDemand II, which provides [email protected]; Web site: at the The Quell Group, Troy, to provide com- Co., Detroit, for the new University of Renaissance munications and marketing services. access via smart phone or PDA. Web www.southfieldchamber.com/n3. Michigan Law School academic build- site: www.mistinnovations.com. Ballroom of the Servant Systems, Ann Arbor, a fran- ing and the Hutchins Hall Law School Priced Right Print, Royal Oak, an on- Detroit Marriott chise software development special- commons addition in Ann Arbor. Electric Vehicles, the Smart Grid and Renaissance line commercial printer, has added You. 5-8 p.m. Marketing and Sales Ex- door hangers, posters and booklets to Center. Both ecutives of Detroit. With Keith Cooley, men are its products. Web site: president and CEO, NextEnergy. Met- www.pricedrightprint.com. working to ropolitan Hotel, Troy. $45 members, Bobb transform the $60 nonmembers, $360 member’s table TRW Automotive Holdings Corp., city in very difficult times. MARKET PLACE Livonia, announced its next-genera- of eight, $480 nonmember’s table. Con- tion airbag control unit. Production tact: (248) 643-6590; Web site: Tickets are $65 each, $60 for will start with two major vehicle www.msedetroit.org. groups of 10 or more, and $75 at ANNOUNCEMENTS & FOOD SERVICE manufacturers in 2012. Web site: the door. SERVICES www.trw.com. To register, visit Looking to buy!!! Mobiata, Ann Arbor, a provider of www.crainsdetroit.com/ WEDNESDAY crainsevents. For questions and BUILDING MAINTENANCE New or used (mint-condition) mobile travel applications, announced the availability of an An- group reservations, call (313) 446- 12 cash registers and 12 scales needed JAN. 27 droid version of its FlightTrack mo- 0300. for produce center. bile application. Web site: Membership Maximizer. 5:30-7:30 p.m. Call 586-574-3000 -- ask for www.mobiata.com. Detroit Regional Chamber of Com- of Retired Executives, Detroit. Learn Sam or Mo. Fax: 586-574-9118 Mango Languages, Farmington Hills, merce. An orientation outlining how to do the research and planning chamber services, programs and ben- has launched Mango Basic, a begin- required to start a successful efits. Blue Care Network of Michigan, ner language learning program. Web business. Included are discussions Southfield. Free for Basic members with experienced business people. Crain’s Classifieds Gets Results site: www.mangolanguages.com. and above. Contact: (866) 627-5463; e- Southfield Public Library. $45. Con- mail: [email protected]; tact: (313) 226-7947; e-mail: detscore@ NEW SERVICES Web site: www.detroitchamber.com. sbcglobal.net; Web site: www.scorede ProGreen Properties Inc., Birming- troit.org. ham, has launched a Web site: Online Digital Magazines and Cata- REAL ESTATE www.progreenproperties.com. logs. 11:30 a.m.-1 p.m. Lunch Ann Ar- Social Media for Business. 7:30-9:30 EHealthSource.com, Bloomfield Hills, bor Marketing. With Jeff Kalman, iPa- a.m. Feb. 10. Commercial Real Estate has launched an online shopping site per. Conor O’Neill’s, Ann Arbor. Women Detroit; Palmer Commercial INVESTMENT PROPERTY OFFICE SPACE dedicated to over-the-counter medica- Suggested donation $3; lunch dis- Services. With: David Benjamin, Sales tions approved for Flexible Spending counted to $10 for LA2M. Contact: Matrix. Radisson Inn Hotel, Bloom- Property 20 cents on the dollar Professional Office Space for Lease - Southfield Account or Health Savings Account (734) 272-4698; e-mail: [email protected]; field Hills. $35 members, $50 nonmem- Web site: www.la2m.org. bers. Contact: (785) 832-1808; e-mail • Residential lots, 100’ wide, 11 for $165,000, 400 - 11,000 sq ft claims. Web site: www.ehealth Washington Township, water and sewer. source.com. [email protected]; Web Central location, close to expressways site: www.crewdetroit.org. • Fast food site on I-94, south of 21 Mile, The New Economy Initiative, Detroit, How to Write a Successful Business Move-in Incentives easy off/on, $550,000,1.25 acres. launched a new Web site: www. Plan. 8:30 a.m.-12:30 p.m. Service • Waterford, 50,000 sq ft bldg, $8 sq ft, 4% 248-424-8632 neweconomyinitiative.org. Corps of Retired Executives Detroit. Member Mixer: Fully Loaded. 5-7 p.m. Feb. 17. Macomb County Chamber. financing. $2,425/month with $20,000 down. [email protected] Hennessey Capital L.L.C., Huntington Learn what is required for a business plan for the marketing, management Anton Art Center, Mt. Clemens. Free • Condo lots, Chesterfield, try $2,000 (120) Woods, a specialty finance company and financial sections. Southfield for members. Contact: (586) 493-7600; • Mac/Ray front row condo with enclosed providing working capital to small Public Library. $45. Contact: (313) 226- e-mail: cynthia@macombcounty- heated 80’ slip, $290,000. and midsized businesses, launched a 7947; e-mail: [email protected]; chamber.com; Web site: www.macom- Bill McMachen -- [email protected] FOR LEASE new Web site: www.hennesseycap. Courtyard Office Park Web site: www.scoredetroit.org. bcountychamber.com. 586-915-4441 com. Lee & Associates STARTUPS The Importance of Your 30-Second Commercial. 4:30-6:30 p.m. Feb. 17. INDUSTRIAL PROPERTY Divorce Strategies Inc., a divorce fi- FRIDAY Automation Alley. This session will nancial and tax analysis firm, at 31313 JAN. 29 focus on creating your introduction $12.50/PSF Northwestern Highway, Suite 223, that you use when you are meeting Farmington Hills. Telephone: (248) Practice Issues Forum. 8:30 a.m.-12:30 new people. Automation Alley, Troy. 28200-28336 Franklin Rd • Southfield, MI 737-3303. p.m. Michigan Association of Certified $25 Automation Alley members, $50 • Availabilities from 892 - 17,750 SqFt 367,000 SQ. FT. AVAILABLE Health and Healing Chiropractic at Public Accountants. With: David Boyle, nonmembers. Contact: (800) 427-5100; • Highly Accessible to I-696, Northwestern e-mail: [email protected]; Easily Accessible Low Rates Rail On-site Mgmt 226 Walnut Blvd., Suite B, Rochester. president, Detroit and Northern Ohio, Highway and Telegraph Road Web site: www.automationalley.com. Exterior Storage www.waretechindustrialpark.com Telephone: (248) 656-6957. National City; David Girodat, president CATELLUS GROUP, LLC 810-695-7700 • Tenant Controlled Utilities/HVAC and CEO, Eastern Michigan, Fifth Sweet and Savory Bakery, 289 Main • Motivated Owner with Aggressive Rates Third Bank; Sandra Pierce, president • Proven Management St., Milford. Telephone: (248) 685-9400. and CEO, Michigan, Midwest regional CALENDAR GUIDELINES For More Info Please Contact: Web site: www.sweetandsavory executive, Charter One; and AVAILABLE NOW Dan Verderbar Rebecca If you want to ensure listing online 248.324.2000 bakery.com. Smith, regional president, Huntington 4,000 to 100,000 sq. ft. [email protected] and be considered for print Todd Hawley Big Hug L.L.C., Bloomfield Hills, an e- National Bank. Westin Hotel, South- publication in Crain’s Detroit Also 10,000 & 25,000 sq. ft. [email protected] commerce remembrance gifts compa- field. MACPA Members $149, registrant Business, please use the online Free Standing Bldgs w/truckwells. 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Oakland County Business appear and you’ll be taken to our send e-mail to cdbdepartments@ Center; The Entrepreneur’s Source. A Details at: business preplanning workshop. Oak- online submission form. Fill out crain.com. Use any Business Diary the form as instructed, and then Troy -- Sale or Lease land County Executive Office Build- anchorbaywaterfront.com item as a model for your release, click the “Submit event” button at and look for the appropriate ing, Waterford Township. Free, pre- 67,700 Sq. ft. Mfg. or Whse. registration required. Contact: (248) the bottom of the page. That’s all category. Without complete $1.95/Sq. ft. Lease Rate Advertise your 858-0783; Web site: www.oakgov.com. there is to it. Possible Seller Financing information, your item will not run. More Calendar items can be found Products and Services in Photos are welcome, but we cannot on the Web at Broker/Owner (248) 705-0835 Crain’s Detroit Business guarantee they will be used. 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January 25, 2010 CRAIN’S DETROIT BUSINESS Page 25 Funding cuts prompt arts-grant changes

LANSING – After see- gram providing funds for schools pay for the transportation $1.7 billion in the upcoming 2011 were referred to the Senate Com- ing its funding slashed operational support and costs of field trips to designated fiscal year, the outlook isn’t good merce & Tourism Committee, by more than 70 percent Capitol projects. council-affiliated arts and cultural for rebuilding general-fund sup- chaired by Jason Allen, R-Tra- in this year’s state bud- Briefings Under the Program for organizations. port for the arts grants. verse City. get, the Michigan Council Operational and Project This year’s total funding for the Latvis said that while ArtServe for Arts and Cultural Affairs Support, grants are School Bus Fast Grants is $60,000, will continue to advocate for in- is moving ahead with available to help organi- triple last year’s amount. Grants of creased funding and fight against Short takes new priorities. zations with operating up to $500 are available. any further cuts, the group is plac- The number of electricity cus- The $2.15 million that costs such as salaries, Bracey said that besides providing a high focus on the November tomers in Michigan that generate the council has available marketing, equipment ing an educational experience for elections and informing candi- their own power and supply their for grants this year, out and space rental, and students, arts and cultural venues dates about the significance and utility increased from 53 to 137 of a total $2.25 million supplies, as well as with benefit from field trips that had economic importance of arts and during the 12 months ended June state appropriation that projects. been on the decline. culture to the state. 30, 2009, with wind energy installa- Amy Lane includes some $839,000 in Applicants for operat- ■ Continuing to work with orga- “We’re not saying that arts and tions being the most prevalent, ac- National Endowment for the Arts ing grants fall under a tiered sys- nizations that provide additional culture, that we’re going to turn cording to a Michigan Public Service money, compares with $7.6 million tem in which their last operating services and assistance: the Michi- around the state budget or the Commission report. in grant awards the council made budget determines the size of the gan Humanities Council, advocacy state for that matter, but we’re one State Sen. Gretchen Whitmer, D- in fiscal 2009. grant they can request. The range group ArtServe Michigan, and Min- of the eggs in the basket,” he said. East Lansing, is dropping out of And last year’s amount wasn’t tops at $20,000 and goes down to neapolis-based Arts Midwest, an as- the race for the Democratic attor- even one-third of what the council $5,000. sociation that encompasses nine ney general nomination. Democ- had nearly a decade ago. In fiscal For projects, funding requests Midwest state arts agencies. Panel gets aerotropolis bills rats still seeking the nomination 2001, before state funding started must be a minimum of $5,000 and Mike Latvis, director of public Bills supporting the aerotropolis are Genesee County Prosecutor to drop, the council gave out near- can be no more than $7,500. In both policy at ArtServe, said he can ap- concept in Wayne County have David Leyton and Wayne State Univer- ly $26 million in grants. operating and projects grants, re- preciate “how hard it was to try to been introduced in the Senate, sity Governor Richard Bernstein, a “You ask yourself the question, cipients must provide at least an decide how to divvy up just north joining a package that passed the Farmington Hills attorney. when you’ve gone from a matter of equal cash match. of $2 million.” The state council state House in December. Ann Arbor businessman Rick $26 million statewide, down to ■ Allocating about $500,000, “made the best of it,” he said. Senate Bills 1079-1084 embody Snyder says he has raised $3.2 mil- $2 million, what do you do to re- some 36 percent less than last year, “Their goal was to spread this tax incentive zones and other mea- lion in his bid to win the GOP pri- main viable … and remain a stew- to continue a mini-grant program money as far as they could, to en- sures that passed the House, in mary for governor. ard for arts and culture in Michi- in which the council disperses sure that the impact of arts and House Bills 5346-5351. Amy Lane: (517) 371-5355, gan,” said John Bracey, executive money to 19 regional agencies culture in Michigan doesn’t suffer. Both bipartisan bill packages [email protected] director of the council. around Michigan. The agencies of- And I think that they did a good “We have a little bit of money, fer grants of up to $4,000 to non- job of that.” and we’re going to try to do the ab- profit organizations, schools and Latvis said the outreach that the solute best we can.” municipalities to support a variety council did, asking organizations For the current year, that in- of arts and cultural programs. what they needed, was a good cludes: “It’s an incredibly important move as was not charging grant Asking arts and cultural orga- program to us and our mission,” application fees this year. nizations what they need the most Bracey said. At present, given Michigan’s We understand that one and allocating the majority of its ■ Reinstating a program, begun continuing budget straits and a po- grant money toward a new pro- last year as a pilot, that helps tential shortfall of more than size does not ﬁ t all.

Pontiac film studio project clears hurdles We know this much is true: small clients become big BY CHAD HALCOM CEO of Birmingham-based real es- approve project plans or bonds to clients and big clients still have small needs. CRAIN’S DETROIT BUSINESS tate company Nelson Ventures, ac- finance them are generally unani- cording to a project plan submitted mous, but the board has disagreed A group of local investors would to the Oakland EDC. occasionally on a project’s merit So we approach every opportunity - large or small - as if finance a film production and Nelson Ventures CFO Steve before, said EDC assistant secre- our reputation is on the line. Because it is. training facility in Pontiac in part Lemberg said the bond sale, if ap- tary Mary Langhauser, who is also with $23 million to $28 million in proved, would raise either $23 mil- financial services supervisor for bonds issued through the Oakland Contact Jones Lang LaSalle today. We’re the one lion or $28 million toward the the county. County Economic Development Corp. company that ﬁts all your real estate needs. $60 million total project cost, de- Sorenson afterward would say under a project plan that cleared pending on how much funding the only that she was “uncomfortable two regulatory hurdles last week. company can raise elsewhere. with the nature” of the proposal as The Oakland EDC board of di- The rest of the project financing submitted by Nelson and Lemberg, For real estate services: rectors voted 7-2, with one member would come from partner equity in but did not elaborate on her rea- abstaining and one absent, to ap- the project, along with $11 million sons for refusal. Smith left the James C. Becker Ronald J. Gantner, CPA prove the project plan for Michigan in state film incentives, as well as meeting before he could be inter- Market Director Executive Vice President Motion Picture Studios L.L.C. to con- some new market tax credits or in- viewed and a phone number for + 1 313 967 4100 + 1 313 967 4105 vert one of the buildings of the Gen- frastructure funds available him was not available. eral Motors Co. Pontiac Centerpoint through the city of Pontiac, ac- The project collaborators expect campus into the studio. The plan cording to Lemberg and project the studio to generate 500 con- also gained unanimous approval www.us.joneslanglasalle.com/detroit plan records. struction jobs in development, and from the Pontiac City Council the © 2010 Jones Lang LaSalle IP, Inc. All rights reserved. “We should be in a position to more than 3,000 new direct jobs next day. break ground by late next month, upon completion. The plan must still go before the if all of these procedural steps can Chad Halcom: (313) 446-6796, Oakland County Board of Commission- be completed in time,” Lemberg [email protected] ers’ Planning and Building Commit- said. tee, and the full board, for approval Oakland EDC board members before the EDC can authorize a sale Rebecca Sorenson and Peter Smith of bonds for the project. The Oak- voted against the project plan last land EDC board tentatively expects week; Dennis King, who is also BANKRUPTCIES to consider the bond sale Feb. 3, un- CEO of Detroit-based Harley Ellis less the county board review Deveraux, abstained since his com- The following businesses filed process meets some delays. pany is in contention to become for Chapter 7 or 11 protection in Formerly Motown Motion the project architect. U.S. Bankruptcy Court in Detroit Jan. Pictures, Michigan Motion Picture Some $18 million of the project 15-21. Under Chapter 11, a compa- Studios is the buyer in a land con- bonds would be secured by the ny files for reorganization. Chap- tract deal closed last summer to ac- State of Michigan Employees Retire- ter 7 involves total liquidation. quire a 368,400-square- foot build- ment System, while up to $10 mil- Kitabe L.L.C., 19259 Silver Spring ing from GM. lion in bonds would be sold strictly Drive, Apt. 202, Northville, volun- Collaborators on the project in- “to persons … related by blood or tary Chapter 11. Assets: $21,500; li- clude Hollywood-based Raleigh Stu- marriage (to) the four studio prin- abilities: $81,349. dios, A. Alfred Taubman and the cipals,” according to a memoran- Waynecian L.L.C., 14207 Rick Taubman family, Walbridge dum on the project by OCEDC at- Road, Shelby Township, voluntary Aldinger CEO John Rakolta, William torney Robert Schwartz of Chapter 11. Assets: $170,200; liabil- Morris Endeavor Entertainment L.L.C. Detroit-based Butzel Long P.C. ities: $227,145. and a trust for Linden Nelson, Board decisions for the EDC to — Dustin Walsh 20100125-NEWS--0026-NAT-CCI-CD_-- 1/22/2010 6:03 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS January 25, 2010 Saudis: Partnering with Brighton ■ From Page 1 Al-Turaiki said the management hired to conduct a feasibility and contract with Brighton would cov- valuation report on the project that Got er consulting, management, re- Brighton’s 12-step is nearly complete, Al-Turaiki said. cruiting, technology transfer and “ One factor that led Al-Turaiki to clinical services. protocol is very choose Brighton is its proprietary “We were attracted by their com- easily adapted to chemical dependency health Ethos? prehensive approach because it is record. The CDHR system was de- not just medical with them; it in- veloped with Medical Communica- cludes spiritual attention,” Al-Tu- Islam. tion Systems, Old Bridge, N.J., 4th Annual raiki said. “Brighton’s 12-step proto- ” Bertin-Epp said. Mohammed Al-Turaiki, Saudi Care col is very easily adapted to Islam.” Brighton developed the specialty for Rehabilitation and Health Care EMU Ethos Week Made famous by Alcoholics Anony- electronic medical record system March 15-19 mous, the 12-step approach used by Construction on the $60 million, four years ago and has been using it Capstone Lunch March 19: Brighton includes a commitment 291,000-square-foot facility — to be the past three years, said Richard I EMU Student Center by people to stop drinking. Some of named Saudi Care Brighton Hospital Kramer, president of the Brighton I $35 general public the steps call for people to admit — is expected to begin in April af- National Addiction Foundation, the I $5 EMU students that alcohol has taken over their ter Brighton officials review the fundraising arm of the hospital. lives and that only a higher power hospital’s architectural and design “We will develop the Saudi ver- can restore their balance, acknowl- plans, Al-Turaiki said. sion of the health record,” Kramer edge that drinking is wrong and ask The addiction-treatment center said. God for forgiveness. will feature 230 general inpatient Over the past decade, the num- For ticket information, Denise Bertin-Epp, Brighton’s beds, 20 intensive care beds and an bers of Saudis and Muslims in the Keynote Speaker, Robert Bobb, president and chief nursing officer, emergency department. The hospi- Gulf region who have become ad- Emergency Financial Manager, call 734.487.4140 or visit cob.emich.edu Detroit Public Schools said signing the letter of intent with tal’s 43 clinics will range from psy- dicted to illicit drugs, narcotics and Saudi Care is just the first step in chiatric to addiction, general med- alcohol has tripled, Al-Turaiki said. the due diligence process that is ex- icine, cardiology, pediatric, dental “It has become a serious prob- pected to take about six months. and nutrition. lem,” Al-Turaiki said. “The de- “At this point it sounds doable. Al-Turaiki said the hospital will mand for a facility like we are We will go over to Saudi Arabia in open during the first half of 2012. building is very great.” a few months to make sure it is During 2011, Brighton executives The center also will treat condi- mutually beneficial,” Bertin-Epp are expected to help his company tions including obsessive compul- NATURAL GAS / PROPANE HEATERS said. “This would mean an oppor- recruit and hire physicians, nurs- sive and sleep disorders, phobias, tunity to extend our expertise to es, researchers and administra- depression and autism, he said. A countries that need additional tors to staff the facility, he said. pediatric clinic will treat adolescent care.” The hospital project has received psychological and organic condi- If the management contract is approval from Saudi Crown Prince tions that include cerebral palsy signed, Bertin-Epp said Brighton Sultan and will be financed by a 50 and epilepsy, he said. would have to hire additional peo- percent investment of the Saudi “We plan to serve the Islamic ple to help with the project. government, Al-Turaiki said. The world, not just Saudi Arabia,” Al- “In the short term, we would remaining costs will be financed by Turaiki said. “Brighton is our need maybe a dozen people at the a variety of international banks and strategic partner and will help us leadership level,” she said. “We private investors that could include build (five other) similar facilities.” first want to make sure it is signed, Brighton Hospital, he said. Jay Greene: (313) 446-0325, Portable Heaters (Natural or LP Gas) from 16,000 sealed and delivered.” Accounting firm KPMG has been [email protected] to 4,000,000 BTU’s are available for sale or rent. Also in stock are Ground Thawers and Fans. Ads: *Lift Truck Fuel* *Temporary Heat* Business can be bigger player ■ From Page 3 LaBrant, who was also part of the oil, Wall Street banks, health in- pleted in late 2007 attacking the original Michigan case and attend- surance companies and the other candidacy of then-Sen. Hillary 7200 Inkster Rd. Phone: (313)292-9100 ed the Supreme Court’s oral argu- powerful interests that marshal Clinton in Democratic primaries. P.O.Box 35 Fax: (313) 292-5950 ments last fall, said he expects the their power every day in Washing- Lower courts had found the ads Taylor, MI 48180-0035 www.propaneservices.net chamber will begin to adopt a mix ton to drown out the voices of violated a provision in the Mc- of candidate advertising buys al- everyday Americans.” Cain-Feingold Bipartisan Cam- lowed by the new ruling along with Kyle Caldwell, president and paign Reform Act of 2002. traditional “issue ads” that advoca- CEO of the Michigan Nonprofit Asso- But the Supreme Court asked cy groups relied on for years to ciation, said last fall for local attorneys to make steer clear of the former state law. 501c(3) nonprof- new legal arguments revisiting the These are ads that political par- its are still Michigan Chamber case. ties or other nonprofits create to barred from po- Detroit-based Dykema Gossett shed light on an election issue litical messag- P.L.L.C. and Honigman Miller without using “express advocacy” ing under sepa- Schwartz and Cohn L.L.P. presented OUTGROWN language calling for voters to sup- rate laws, but an amicus brief and arguments on port or oppose the candidate. that trade and behalf of the Michigan Chamber. YOUR LOOK? An example is the “Sleeping professional or- Rich Robinson, executive direc- Judge” ad by the Michigan Democra- ganizations or tor of the nonpartisan Michigan tic Party in 2008 about then-Justice political advoca- Campaign Finance Network, said he Caldwell Clifford Taylor, who lost his Michi- cy groups can does not see a significant impact gan Supreme Court seat to Diane now pursue greater fundraising on state election campaigns be- Hathaway. and advertising to advance their cause issue ads already offered The new ruling would have al- messages under the court ruling. corporations a way to participate lowed that ad to call for voting for “The landscape is going to in elections, and the sponsoring Hathaway, or to defeat Taylor, change for these nonprofits and for organizations can aggregate con- LaBrant said. the campaign season in terms of tributions from corporations, Johnston said the MMA could go both access to communication and whose identities aren’t disclosed. a step beyond its past measures, to public officials,” he said. Robinson said the original 1990 such as a billboard advertising “I don’t think all this change is ruling in the Austin v. Michigan campaign last year that opposed going to happen tomorrow — we Chamber of Commerce case “has the proposed Employee Free still need some further clarifica- been effectively circumvented for Choice Act in Congress, to back tion of the law pretty soon. (But) a good long time.” specific candidates who take posi- by the time of the primary elec- “I don’t think there’s a corporations on EFCA. tions, this could mean a different tion in Michigan that doesn’t LaBrant also said he expected kind of campaigning.” know how to get in the game, if the ruling to generate new levels of At issue in the latest case were they want,” he said. MARKETING • PR • DESIGN • NEW MEDIA national spending on top-ticket advertisement spots promoting Chad Halcom: (313) 446-6796, identitypr.com federal elections in Washington. nonprofit conservative group Citi- [email protected] President Obama has called the zens United’s release of “Hillary: State Capitol correspondent Amy new ruling “a major victory for big The Movie,” a documentary com- Lane contributed to this report. 20100125-NEWS--0027-NAT-CCI-CD_-- 1/22/2010 6:04 PM Page 1

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 27 Prevention: Better programs sought ■ From Page 3 to their insurance coverage op- charges in 2007, ranking number “This is an area we are looking tions for workers. nine on the top 10 list in Michigan, at to initiate programs for im- Simmer said companies can use the center said. Back disorders ac- provement,” Simmer said. “We are the report to “intelligently raise counted for 1.6 percent of all dis- doing everything we can to im- questions with insurers with charges nationally. prove prenatal care. There may be health care delivery organizations “Back surgery is a top 10 admis- an opportunity to look at various as to what efforts are under way to sion in Michigan. A lot of people forms of treatment for infertility, affect these main cost drivers.” are getting back surgery who which sometimes led to under- While hospitals and doctors in would do just as well without weight infants.” Michigan have taken steps to im- surgery,” Udow-Phillips said. “We Udow-Phillips said one of the prove quality and reduce costs, need to have patients more in- more surprising findings of the Simmer said providers are chal- volved in these decisions.” study was that the generic form of lenged because smoking rates and In 2007, total hospital spending Vicodin was the most frequently obesity are higher in Michigan on back disorders alone was al- prescribed drug nationally and in than nationally. most $26 billion in the U.S. and Michigan. “Other states are moving more $819 million in Michigan. Alternative behavioral strate- quickly to lower smoking preva- While the center found that gies to treat pain could be less cost- lence than Michigan,” he said. Michigan’s hospital charges are ly and just as effective as medica- “Smoking and obesity are lifestyle lower than national averages, the tion, she said. factors that lead to a range of dis- higher use of technology and possi- “We have a researcher (at the Uni- eases, some of which can be pre- ble overuse of such surgical ser- versity of Michigan) who is convinced ventable.” vices as angioplasty and back cognitive behavioral therapy can be The center found that in Michi- surgery could be driving up costs an alternative pain treatment in gan more women, 16,000, are hospi- unnecessarily, Udow-Phillips said. some cases,” Udow-Phillips said. talized for mood disorders than “We are doing more surgical in- To see an electronic copy of the men, Udow-Phillips said. tervention in Michigan,” she said. report, visit www.chrt.org. Females in Michigan accounted Angioplasty procedures, which Jay Greene: (313) 446-0325, for 57 percent of total mood disor- are used to open narrowed or [email protected] der discharges, compared with 43 clogged blood vessels of the heart, percent for men, the center said. could be higher in Michigan be- “We don’t know why and are cause of the availability of ser- looking into it,” she said. “We do vices, said Udow-Phillips. know the data shows that the inci- “We have lots of cardiac pro- dence of depression in women is grams, lots of surgeons, and the higher. … There is post-partum de- practice patterns that have been pression.” developed in the community over Udow-Phillips said employers time to do more of them,” she 2010 DETROIT TIGERS could develop better systems to said. identify workers who exhibit signs Another driver of high medical SEASON TICKET PACKAGES of depression or mood disorders. costs is care for premature infant “Employers will want to encour- births. The average charge for low age people to be diagnosed for de- birth weight or premature birth is pression to keep them out of the 14 times higher than that for a ON SALE NOW! hospital,” she said. healthy infant birth: $119,389 per In Michigan, back disorders also discharge compared with $7,182, accounted for 2.1 percent of dis- the center said.

Biz sales: t Full Season, 41-game, 27-game and Prices slide 15-game packages available ■ From Page 3 t Plans to ﬁt every schedule are not likely to be selling.” there are fewer businesses for sale Royal Oak-based business bro- in Michigan per capita than practi- ker Jay Houghton of Royal Oak Busi- cally any other state in the coun- ness Brokers concurred. try,” he said. “It was astonishing “There are to me.” very few really Another factor depressing the profitable busi- sale of businesses, both Handels- t Save up to 35% over single game prices nesses for sale, man and Houghton said, is lack of and the ones access to capital for potential buy- t Opening Day tickets that are prof- ers. itable are over- “There’s high supply and high t Free food vouchers priced,” he said. demand, which means there t Private season ticketholder entrance “(A buyer) is not should be a high volume of trans- going to buy an actions,” Handelsman said. “But t Discounted parking options unprofitable there’s no capital, so small-busi- Houghton business.” ness buyers can’t get access to tAnd much more! Nationally, Handelsman said, the funding, and the only way they can number of businesses reported to buy a businesses is by raising Justin Verlander BizBuySell as sold was down 28 per- their own capital and seller financ- 2009 MLB Strikeout Leader cent, and the median sale price was ing. Both are hard to do.” down 15.8 percent. Median revenue Houghton said that the business and cash flow were also down. market could be helped with an in- “The big picture across the flux of U.S. Small Business Adminis- country is that businesses are tration-backed financing geared to- struggling,” he said. “As we get a ward the sale of businesses. broader sample set, most business- With many businesses strug- es are seeing declining revenue gling and financing hard to come and declining cash flow compared by, Houghton said, “That means to 2008.” there’s a lot of small-business own- And fewer business are for sale ers that are going to be disappear- in Michigan, said Houghton, who ing. I’ve told a lot of business own- created an index for the favorabili- ers they’re better off liquidating … ty of selling or buying a business sometimes the liquidation value is based on data for 40 states by actually higher than the business culling online listing services. as a going concern, because as a “On a per capita basis, if you going concern it’s losing money.” take the number of businesses and Nancy Kaffer: (313) 446-0412, *Restrictions apply. divide it by the adult population, [email protected]. 20100125-NEWS--0028,0029-NAT-CCI-CD_-- 1/22/2010 5:55 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS January 25, 2010 Detroit Pistons on the block? Stadium authority Pistons: Davidson has her reasons for selling could oversee ■ From Page 1 Forbes to be worth $2.1 billion. He left the National Basketball Associa- development tion franchise, Palace Sports & En- Davidson family owns Guardian, board runs it tertainment and his real money- maker, Auburn Hills-based BY RYAN BEENE Davidson had been planning “So I think they’re going have of a joint arena Guardian Industries Inc., to his wid- AND BILL SHEA succession since at least 2007. another difficult year ahead,” he ow and his two adult children CRAIN’S DETROIT BUSINESS He told Crain’s in an interview said. If a rumored joint Detroit Pistons- through various trusts. at the time that the estimated Eckert noted, though, that Detroit Red Wings arena becomes a What critics call the “death After chairman and majority $5.4 billion glass, automotive and Guardian has been active in con- reality in downtown Detroit, its tax” is 45 percent of the total tax- owner Bill Davidson died in construction manufacturing gi- taining costs, and while earnings birth could follow the path of the able estate, with certain exemp- March 2009, leadership of ant would remain may be down, the city’s last two sports venues: Com- tions. Settling such a large estate Auburn Hills-based Guardian In- family owned, and cost controls likely erica Park and Ford Field. can take years, especially if there dustries Corp. was transferred to a an employee stock I think are mitigating loss- That means construction and is a complex series of trusts, as in board of directors consisting of ownership plan “ es. development would go through the this case. longtime company executives. was not in the they’re going to “Probably the Detroit-Wayne County Stadium Author- The will reportedly was signed Ownership remains split be- works at that point. valuation they ity, a five-member public board a week before Davidson died. tween his widow, Karen, and his Guardian Indus- have a difficult could attract if they that oversees the ownership of the “Estate taxes are generally due two adult children. tries ranks as the were looking to sell football and baseball stadiums. nine months after date of death, Davidson’s rescue of the com- third-largest pri- year ahead. the business two to The authority owns the stadi- except when at least 35 percent of pany from bankruptcy in 1957 vately held compa- three years ago was ums and leases them to the county, ” the estate is comprised of closely and his subsequent chairman- ny in the region Glenn Eckert, much higher than which then subleases them to the held businesses — presumably, ship, which included worldwide with an estimated Moody’s Investors Service the value it would team. the Pistons and Palace companies expansion and taking the firm $5.4 billion in 2008 attract today, but William Wolfson, chairman of would qualify for this,” said An- private again in 1985, fueled his revenue, behind only what was longer term, it’s a reasonably the board and interim corporation drew Mayoras, who specializes in fortune — valued by Forbes at then Chrysler L.L.C. and Penske well-positioned company in the council for the county, said he has- estate issues $5.5 billion in 2008 but down to Corp. business that they’re in and n’t had any talks about a new sta- for Troy-based $2.1 billion last year amid the Its main product is automotive longer-term will fare reasonably dium in about a year. Barron, Rosen- auto industry downturn. glass, but its construction glass well, but right now, there are just “There have been some very pre- berg, Mayoras & As part of Davidson’s succes- and building-products business- a lot of headwinds,” Eckert said. liminary, very general telephone Mayoras P.C. sion planning, Guardian Glass es also saw major revenue drops Eckert said that while the com- conversations a year ago,” he said. and who has Group President Russell Ebeid during the recession. pany is privately held, a signifi- The authority meets twice a some familiari- was named board chairman. “Both those businesses have cant decrease in value is not un- year, he said. ty with the On the board are: suffered quite a bit over the last reasonable as both The Red Wings won’t comment, Davidson es- Ⅲ Duane Faulkner, president 18 months, revenues are down business-valuation multiples and but a joint arena makes sense, tate situation. of Guardian Building Products Group quite sharply from peak levels, cash flows have decreased signifi- Tom Wilson, president of Auburn “Then, you can Ⅲ Robert Gorlin, vice presi- not surprisingly,” said Glenn cantly over the past few years. Hills-based Palace Sports & Enter- Mayoras stretch out the dent of Guardian Industries Eckert, who analyzes Guardian’s “I think the multiples have con- tainment, told Crain’s Thursday. payments for up to 14 years, but Ⅲ Jeffrey Knight, Guardian In- debt as a vice president in the tracted by two or three turns, at “An arena for both parties is the interest is charged and other con- dustries CFO corporate finance group of least, from where they were, and logical thing and best thing for ditions apply.” Ⅲ Peter Walters, group vice Moody’s Investors Service. the EBITDA the business throws everybody — the fans, the teams Karen Davidson confirmed last president of Guardian Industries While the automotive glass off went from several hundred and the owners,” Wilson said. “ … week that she’s exploring selling While equity remains with the business has probably already million dollars to a very low num- If we were together, we’d sell a lot the team her husband bought for family, the board is responsible hit the bottom of the downturn, ber right now,” Eckert said. more suites.” $7 million in 1974. Palace Sports, for “setting overall direction and Guardian’s building-products “So if someone were to value Still, details remain far off. which manages the Palace of overseeing the ongoing opera- business likely will decline an- the business from the current “We’re not anywhere near to Auburn Hills and other venues, tion of the company,” in addition other 10 percent to 19 percent run rate, it would be quite low.” having those conversations,” he could be sold separately, she said. to its responsibilities for day-to- over the course of 2010, based on Ryan Beene: (313) 446-0315, said, noting that any deal is sub- Tax laws exempt the first $3.5 day operations, according to a the pace of new private-sector, [email protected] ject to the wishes of whoever million of an estate, but that’s a company statement issued about nonresidential commercial con- Bill Shea: (313) 446-1626, might own the team in the future. fraction of the Davidson situa- the succession last April. struction, Eckert said. [email protected] How any new arena is developed tion. and funded will be up to the team “It’s a little hard to speculate of an Israeli company her hus- using, but she’s been pictured at A minor-league baseball team or teams, Wolfson said. on how much of his fortune will band did business with, that fur- Pistons games recently with pow- owned by Palace Sports — the “The stadium authority is a ve- go to taxes, because it depends on ther muddle the picture. erful figures such as shopping North Carolina-based Asheville hicle available to assist,” he said. how many charitable trusts he The tax situation and legal en- mall developer Alfred Taubman Tourists, the Class-A Colorado Rock- “There are many models that has. Certainly, one would imag- tanglements over the estate aren’t and U.S. Circuit Judge Damon ies affiliate— is also for sale. could be used.” ine it’s at least $300 million to expected to prevent a sale of the Keith. Karen Davidson told the Wall Sports industry insiders have $400 million,” said Mayoras, who Pistons, provided the estate How much cash Davidson could Street Journal that she put her estimated a new arena would cost recently co-authored the book trustees, John Aaron and Eric raise through a sale depends on 10,000-square-foot, eight-bedroom at least $300 million, and financing “Trial & Heirs: Famous Fortune Garber, concur. It’s believed that the buyer and the market. vacation home in Snowmass Vil- likely would be a combination of Fights!” all parties, in fact, agree a sale is “They do have a glaring need lage, Colo., on the market for $47 private money, loans and tax dol- Former Pistons minority own- needed. for liquidity,” Mayoras said. “It’s million on Dec. 29. lars — the same formula used for er Oscar Feldman, who was Bill Even though the process of set- an economic issue, as well. The The home was bought by Bill Ford Field and Comerica Park. Davidson’s lifelong friend and at- tling such a large estate is com- Pistons and Palace are not as Davidson for $8.25 million in 1996 The new $321 million home of the torney, last week told Crain’s that plex and requires Internal Revenue valuable as they once were. They from Wall Street trader Boyd Jef- Pittsburgh Penguins is scheduled to his death “brought on myriad Service valuations on assets, that have to sell something.” feries. open in August. The 18,087-seat Con- problems” that have Karen David- doesn’t mean the franchise can’t Several industry sources have Karen Davidson has the con- Sol Energy Center will be owned by son, the other minority owners be sold. valued Palace Sports at about $750 trolling ownership of the Pistons; the Sports and Exhibition Authority of and the estate trustees willing to “The value of the estate doesn’t million, and Forbes estimates the minority stakes are held by Ethan Pittsburgh and Allegheny County. sell the team. have to be completed before the Pistons to be the centerpiece, with Davidson, Warren Coville, Bud Construction costs were fi- He didn’t elaborate on the sale of any assets in the estate,” a value of $480 million. Gerson, Dorothy Gerson and nanced through gambling taxes specifics other than to say some of said Julius Giarmarco, executive However, the team has strug- William Wetsman. and $10 million from the state, $5.5 them are related to the economy. committee partner at Giarmarco gled this season, and the reces- There is precedent for families million from the stadium authori- Complicating matters — and Mullins Horton PC in Troy. “But sion and subsequent credit forced to sell pro sports teams af- ty and $15.5 million from the team possibly further fueling a desire you wouldn’t want (the sale) to be crunch make financing such pur- ter an owner’s death: The Miami in addition to its $4.2 million annu- to shed assets for cash — is the too inconsistent with estate tax chases difficult (See accompany- Dolphins were sold in 1990 to satis- al payment over 30 years. possibility of the Tampa Bay Light- return.” ing story). fy the estate tax bill after owner Wayne County Executive Robert ning hockey franchise returning That means owners can’t tell Davidson has made other Joe Robbie died. Ficano said last year he’s had some to the estate because the current the IRS a team is worth one price moves recently that increase her In 2008, Bill Davidson said his talks with Red Wings owners about owners, who bought the team but sell it for a lot more. liquidity. plan was to keep the Pistons in his an arena — they’re in talks with the from Bill Davidson in 2008 for The IRS declined to comment In October, she sold the Detroit family. city to renew a lease at Joe Louis $200 million, are in danger of de- on the Davidson situation or com- Shock women’s basketball fran- “If Bill were alive, the team Arena but are believed to want a faulting on the note — which is ment generally on the rules for chise to an investment group that would not be sold. His death new venue — but declined to dis- held by Palace Sports because the settling large estates. moved the team to Tulsa, Okla. brought on myriad problems,” cuss details of those conversations. buyers couldn’t find other lend- Karen Davidson is represented Terms of that deal were not dis- Feldman said. “I loved it as much Detroit and Phoenix are the only ing. by Birmingham-based Williams, closed. The decision to sell the as Bill did. It’s been a big part of two cities to have separate venues There are also two legal claims Williams, Rattner & Plunkett P.C. Shock began under Bill Davidson, both Bill’s life and my life.” for four major league sports teams. made against the estate, including It’s unclear what other formal who bought the expansion team Bill Shea: (313) 446-1626, — Bill Shea one by Karen Davidson on behalf or informal advisers she may be for $10 million in 1998. [email protected] 20100125-NEWS--0028,0029-NAT-CCI-CD_-- 1/22/2010 6:17 PM Page 2

January 25, 2010 CRAIN’S DETROIT BUSINESS Page 29 Land use: Shared www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Pistons considered to be EXECUTIVE EDITOR Cindy Goodaker, (313) 446- priorities seen as key 0460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 446- ■ From Page 1 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette would be what Rapson called a sort of talked and not talked.” Smith, (313) 446-1622 or [email protected] strong, sellable franchise BUSINESS LIVES EDITOR Michelle Darwish, (313) fairly traditional planning In an e-mail to Crain’s, Green 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 process. called the collaboration between or [email protected] Y ILL HEA lotte Bobcats, Golden State Warriors B B S “What’s the intermediate-term the city and the philanthropic ASSISTANT NEWS EDITOR Jeff Johnston, (313) CRAIN’S DETROIT BUSINESS and Memphis Grizzlies. strategy, how much relocation 446-1608 or [email protected] community unprecedented. DATA EDITOR Anne Marks, (313) 446-0418 or The Pistons, however, are con- are we talking about, if any, do we “(It) offers all parties involved [email protected] If the Detroit Pistons end up on sidered a more lucrative fran- do buyouts, grandfather people in an opportunity to help reshape WEB EDITOR Christine Lasek, (313) 446-0473, the market, they will sell — even chise financially and from a van- [email protected] — you can do this so many differ- Detroit,” he said. “Only through a WEB DEVELOPER Steve Williams, (313) 446- in a poor economic climate with ity standpoint. ent ways that moving too quickly cooperative effort, where all 6059, [email protected] tight credit markets — and prob- “I don’t think it has quite the EDITORIAL SUPPORT Robertta Reiff (313) 446- is shooting yourself in the foot,” stakeholders concur and support 0419, YahNica Crawford, (313) 446-0329 ably sell faster than other teams brand cachet that the Celtics or he said. a plan, can we achieve our goals.” NEWSROOM (313) 446-0329, FAX (313) 446- on the market. 1687 TIP LINE (313) 446-6766 Lakers do, but it’s right there in “In the second six to eight Developing a coherent voice “If (owner Karen Davidson) the top five,” Fort said. “It’s dif- REPORTERS months, you would start going and set of shared priorities could puts it up for sale, there will be a ferent than buying the Hornets Ryan Beene: Covers auto suppliers, steel, higher about this process of community pay off for the city in terms of at- education and Livingston and Washtenaw buyer. NBA franchises are very or Warriors.” counties. (313) 446-0315 or [email protected] engagement, introduce some of tracting federal dollars and funds solid,” said Rodney There are also Daniel Duggan: Covers retail, real estate and those tools (to enable consolida- from national foundations, Rap- hospitality. (313) 446-0414 or Fort, professor of two NBA sales tion). Then you have a longer son said. [email protected] sports management pending. Jay Greene: Covers health care, insurance and the phase, five, 10, 15 years while “I think we have an unprece- at the University of The most The Washington environment. (313) 446-0325 or “ some things take hold.” dented opportunity on the philan- [email protected]. Michigan. “The most Wizards and their Chad Halcom: Covers law, non-automotive Community engagement is key, thropic side to get not only local likely scenario is likely scenario Verizon Center manufacturing, defense contracting and Oakland as is developing a strategy for re- foundations but national founda- and Macomb counties. (313) 446-6796 or that someone in home are being ap- [email protected]. is that someone purposing land. tions to work off of the same Michigan will buy praised for sale to Tom Henderson: Covers banking, finance, “How do you take land that’s page,” he said. technology and biotechnology. (313) 446-0337 or the Pistons and Ted Leonsis, owner in Michigan essentially unproductive and put “Once you begin opening the [email protected]. leave them in the of the NHL’s Wash- Nancy Kaffer: Covers small business, the city of it into productive use, whether conversation about the future of Detroit, Wayne County government. (313) 446- Palace.” ington Capitals. Wiz- will buy the it’s urban farming, reforestation. Detroit to national organizations, 0412 or [email protected]. The buyer could ards owner Abe Bill Shea: Covers media, advertising and ... Then there’s a whole set of you start talking about fairly sig- be an individual or Pollin died Nov. 24. marketing, entertainment, the business of sports, Pistons and questions about how do you con- nificant sums of money. If you and transportation. (313) 446-1626 or consortium of in- Both teams play [email protected]. centrate investment,” Rapson vestors who want a at the Verizon Cen- add up the amount of grant mon- Nathan Skid: Multimedia reporter. Also covers the leave them in food industry. (313) 446-1654, [email protected]. team to add to their ter, and Leonsis and said. ey intended to be spent in the city Most major foundations target of Detroit annually by people sit- Sherri Begin Welch: Covers nonprofits and revenue growth, the Palace. his Lincoln Holdings services. (313) 446-1694 or [email protected] investment in a ting at that table Fort said. ” investment group LANSING BUREAU handful of neigh- Amy Lane: Covers business issues at the Capitol, “Sports teams are Rodney Fort, already own 44 per- (at last week’s borhoods, as do telecommunications and utilities. (517) 371- just another ele- University of Michigan cent of the basket- meeting), it is 5355, FAX (517) 371-2492, [email protected]. or The question 115 W. Allegan, Suite 220, Lansing 48933. ment in the owner’s ball team. the city and pri- “ well over $100 wealth-generating portfolio,” he The other sale is the New Jersey vate grant-mak- we’re beginning to million a year.” ADVERTISING said. Nets, a majority stake of which is ing institutions. And other ADVERTISING DIRECTOR Marla Downs, (313) The Detroit channels of 446-6032 or [email protected] Some notable Michigan indi- being sold to Russian billionaire grapple with ... is SALES INQUIRIES: (313) 446-6052; FAX (313) viduals who are wealthy and in- Mikhail Prokhorov’s Onexim Neighborhood Fo- funding may 393-0997 rum was started open for Detroit. ADVERTISING SALES Jeff Anderson, Matthew J. volved in sports already have Sports and Entertainment Holdings how we match up Langan, Lori Tournay Liggett, Tamara Rokowski, said they’re not interested: Quick- for at least $200 million by cur- about two years “There is Kimberly Ronan, Cheryl Rothe, Dale Smolinski ago, Rapson said, the kind of such a high level CLASSIFIED SALES (313)-446-0351 en Loans/Rock Financial founder rent owner Bruce Ratner and his MARKETING MANAGER Irma Clark Dan Gilbert, who already owns Forest City Ratner Cos. The deal is for funders, in- of interest in MULTIMEDIA MANAGER Alan Baker, (313) 446- the Cleveland Cavaliers; Penske expected to include a stake in the cluding city of priorities Washington 0416 or [email protected] Detroit officials, about how to EVENTS MANAGER Nicole LaPointe Corp. founder Roger Penske; and Barclays Center arena proposed MARKETING ARTIST Sylvia Kolaski Compuware Corp. founder and for Brooklyn’s Atlantic Yards de- to talk strategy. foundations are work with De- SALES SUPPORT Suzanne Janik, YahNica Crawford CEO Peter Karmanos. velopment. “The first troit, to the ex- CIRCULATION Candice Yopp, Manager. meetings of the pursuing with the tent that the MARKETING COORDINATOR Kim Winkler Possible buyers include media Two other NBA teams recently PRODUCTION MANAGER Wendy Kobylarz Neighborhood mayor’s admin- companies, Fort said, noting that have completed sales: city’s priorities. PRODUCTION SUPERVISOR Larry Williams, several such companies, such as Ⅲ The Seattle SuperSonics sold Forum were ex- ” istration and the (313) 446-0450 Philadelphia-based Comcast for $340 million in 2006 to Profes- plicitly to say philanthropic CUSTOMER SERVICE Rip Rapson, Corp., already have pro sports sional Basketball Club L.L.C., led by how can we align sector can speak Kresge Foundation MAIN NUMBER: Call (888) 909-9111 or write teams and regional sports net- Clay Bennett, CEO of Oklahoma that work,” he with a unified [email protected] SUBSCRIPTIONS $59 one year, $98 two years. works as moneymakers. City’s Dorchester Capital Corp. The said. “It’s just voice, I think it Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state “Sports are a big deal in build- team subsequently was moved to crazy. We all fund in neighbor- is more likely we can have a con- rate for surface mail. Call (313) 446-0450 or ing larger-scale media,” he said. Oklahoma City, where it was re- hoods, — private, public, nonprof- versation with the federal govern- (888) 909-9111. it, banks — how can we align so ment,” he said. SINGLE COPIES: (888) 909-9111. Another possibility is a person named the Thunder. REPRINTS: (800) 290-5460, ext. 125; (717) 399- or company that’s involved in Ⅲ Dan Gilbert was lead in- that funding stacks up?” “I strongly believe that in the 1900, ext. 125; or ashley.zander@theygsgroup .com. what Fort called “related product vestor in the 2005 purchase of the The city must take the lead, next two to four months we will TO FIND A DATE A STORY WAS PUBLISHED: sales” — such as Nike Inc. founder Cleveland Cavaliers for $375 mil- Rapson said. figure out a way to have a much (313) 446-0367 or e-mail [email protected]. Phil Knight. lion. “The mayor has a different elevated conversation with the CRAIN’S DETROIT BUSINESS IS PUBLISHED BY “It’ll be a nationally competi- There has been little talk that frame; he is sensitive, and we are city of Detroit and the federal gov- CRAIN COMMUNICATIONS INC. sensitive that at the end of the day ernment.” CHAIRMAN Keith E. Crain tive activity,” Fort said. the Pistons would leave Detroit. PRESIDENT Rance Crain The team is valued at $479 mil- Las Vegas, Baltimore and Lon- the agenda is his, not ours, so we Rapson said that at a meeting SECRETARY Merrilee Crain lion by Forbes, mainly because it don have been mentioned in re- have been very reluctant to do with Melody Barnes, director of TREASURER Mary Kay Crain Executive Vice President/Operations owns the 22,076-seat Palace of cent years as possible future anything other than say let’s try President Barack Obama’s Do- William A. Morrow Auburn Hills. NBA cities, or have shown an in- to bring those two bodies of prior- mestic Policy Council, the federal Group Vice President/Technology, Manufacturing, Circulation The team gets the suite, park- terest in getting a team. ities together,” he said. government has signaled an in- Robert C. Adams ing and concession revenue, Saul Green, group executive for terest in making funds available Vice President/Production & Manufacturing Potential owners are unique in Dave Kamis along with a cut of the many con- their goals for the team, Fort safety in Bing’s office, attended to Detroit through existing pro- Chief Information Officer certs and events held at the said, so nothing is off the table. the Neighborhood Forum last grams. Paul Dalpiaz Corporate Circulation/Audience Development venue, built in 1988 with $70 mil- “The Palace is sound and it’s Tuesday with Darchelle Strick- “If you get us all in a room in a Director lion in private money by former nice, but that might not be a best land Love, in charge of special hard-headed way, over a number Kathy Henry G.D. Crain Jr. Founder (1885-1973) owner Bill Davidson. place a new owner would want the projects for the administration. of difficult working sessions, we Mrs. G.D. Crain Jr. Chairman (1911-1996) None of that means owner team. They may want them in “Mayor Bing’s articulated pri- could figure out a way the federal EDITORIAL & BUSINESS OFFICES: Karen Davidson, who inherited 1155 Gratiot Ave., Detroit MI 48207-2732; (313) closer to downtown,” he said. orities and priorities of the foun- government could be helpful,” he 446-6000 the team when her husband died “What the buyer wants to do with dation community are coming to- said. Cable address: TWX 248-221-5122 AUTNEW DET at age 86 in March, might get that the team is a matter of what they gether to shape a single set of The takeaway from the meeting CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the much for the franchise. think is the future highest value.” priorities,” Rapson said. with Barnes, Rapson said, was third week of January, a special issue the fourth week of August, and no issue the third week of NBA team values fell 3 percent There has been speculation that “The question we’re beginning “you guys have to be on the same December by Crain Communications Inc. at 1155 last year to an average of $363 the owners of the Detroit Red Wings to grapple with in more concrete page. There has to be coherent, Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing million, the first drop in the 11 are interested in building a joint terms (at Tuesday’s meeting) is disciplined message coming out offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation years that Forbes has estimated arena with the Pistons in down- how we match up the kind of pri- of Detroit. At the end of the day, I Department, P.O. Box 07925, Detroit, MI 48207- franchise valuations. town Detroit, but so far they have orities foundations are pursuing think that’s what Tuesday was 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2010 by Crain Three other NBA teams are re- declined to talk about it. with the city’s priorities. … This about.” Communications Inc. All rights reserved. portedly on the market but Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any is a greater alignment between Nancy Kaffer: (313) 446-0412, manner without permission is strictly prohibited. haven’t found buyers: the Char- [email protected] two realms that have, in the past, [email protected]. 20100125-NEWS--0030-NAT-CCI-CD_-- 1/22/2010 5:52 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS January 25, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 16-22

companies/2010. the Pentagon to remove of investors to sell all of its Metro Detroit them from serial numbers operations and emerge Will Joos be Show highlights local green, of equipment already de- from Chapter 11 bankrupt- ployed in combat. cy. The transaction is sub- housing effort home sales up The family-owned com- ject to approval by the pany, majority-owned by bankruptcy court, but it is Discovery Communications’ Stephen Bindon, son of supported by a group of biz group’s Planet Green channel has 19.3% in 2009 founder Glyn Bindon, came Champion’s current taken an interest in Detroit under criticism earlier in lenders. A March 18 closing revitalization, showcasing he number of resi- the week for the practice. is planned for the deal. the green, affordable homes dential real estate Comerica Inc. (NYSE: Around 600 General Mo- being developed by Farming- T units sold in foreclo- CMA) reported a net loss of tors and Chrysler dealers out new chairman? ton Hills-based Community 1st sure and non-foreclosure in $29 million for the fourth of the roughly 2,800 whose Development, a joint venture Oakland, Wayne, Macomb quarter, compared to $20 franchises were revoked here’s no official The UM system agreed to between Lewis/Klein Proper- and Livingston counties in million for the fourth quar- last year have asked for ar- word yet on who will pay the $7,000 shipping ties and R&H Development. 2009 showed a combined inter of 2008. For the year, it bitration hearings in an ef- T succeed David Bran- charge for a 40-foot container A 1,400-square-foot home crease of 19.3 percent to reported net income of $17 fort to get their franchises don as chairman of statewide of supplies bound for Haiti was featured on the “Reno- 55,100 in 2009 compared to million, compared to $213 back, the Associated Press CEO group Business Leaders this past weekend, said vation Nation” television se- 46,200 in 2008. million in 2008. reported. for Michigan, but talk is circu- Josephine Jabara, World Med- ries, selected for being the The median price for That will fuel a round of lating that CMS Energy Corp. ical Relief community rela- first green, affordable home non-foreclosure sales 300 layoffs. It’s uncertain President and CEO Dave Joos tions director. available in the city of De- showed a strong increase how many of those will be COURTS is in the track. The agency supplies most- troit and the first dwelling toward the end of the year, in Michigan. The former MGM Grand Joos is one of five vice ly nongovernment organiza- for Community 1st’s Alter but still ended lower than Also, Comerica Bank an- Casino complex in down- chairs the organization has tions with supplies. It also Commons neighborhood in 2008, according to year-end nounced it will close six town Detroit is among sev- said it will look to first in fill- collects water, clothing and the Jefferson Chalmers area. figures released by the branches in Southeast en buildings under consid- ing the spot Brandon is va- other necessities. The show aired last week, Farmington Hills-based Michigan in April: at Nine eration for a consolidation cating as he leaves Domino’s but will air again on Feb. 16 MLS Realcomp II Ltd. Mile and Schoenherr in of Wayne County Circuit Court Pizza Inc. to become University at 6 p.m. and Feb. 17 at 10 a.m. The only price increase Warren; Cherry Hill and Rebranding nears for space, the Detroit Free of Michigan athletic director. was in the city of Detroit, Inkster in Dearborn Press reported. The other vice chairs are National City branches PBS looks at the future of with a 32 percent year-over- Heights; Pelham and Outer Ford Motor Co. Executive year increase to $15,400 Other buildings under There is evidence of sign Drive in Dearborn; Liver- Chairman William Clay Ford transportation in Detroit from $11,600 in 2008. nois and Clarita in Detroit; consideration are the for- work at local National City mer State of Michigan Jr.; Jeff Fettig, chairman and Meanwhile, the Motor and branches in Carleton branches, but a name building, 1001 Woodward, CEO of Benton Harbor-based City’s transportation woes and Lapeer. change isn’t imminent. ON THE MOVE and the Chase Building. Whirlpool Corp.; Michael Jan- are also fodder for national Redford Township- According to Fred Solomon, Call- dernoa, former chairman of interest A look at metro De- New based advertising agency vice president of corporate ing ex-De- Allegan-based Perrigo Co. and troit’s transportation and in- Detroit Inc. Western Creative has signed communications for Pitts- troit May- principal in Bridge Street Cap- frastructure will be featured has named a deal to develop a brand burgh-based PNC Financial or Kwame ital Partners L.L.C. in Grand in a new PBS special called William awareness retail campaign Services Group, the holding Kilpatrick’s Rapids; and Jim Nicholson, “Blueprint America: Beyond Taubman, for Cambridge, Mass.-based company for PNC Bank, all conduct CEO of Detroit-based PVS the Motor City.” COO of JBI Inc.’s line of eco-friendly 247 NatCity branches in reprehen- Chemicals Inc. It will air at 10 p.m. Feb. 8 Taubman cleaning products. Terms Michigan, including 129 in sible, Both Joos and Kirsten on WTVS-Channel 56. It also Centers were not disclosed. metro Detroit, will open on Wayne Ussery, Business Leaders’ di- will broadcast nationwide Inc., chair- Since the enclosed April 12 with new names. County Cir- rector of communications, on PBS affiliates. man, suc- Summit Place Mall in Water- PNC bought troubled Na- Taubman Kilpatrick cuit Court said no decision is made. A private reception and ceeding ford Township closed in tional City in 2008. Judge David Groner told Kil- Ussery said it’s a decision screening are scheduled for Walbridge Aldinger CEO John September, two of the three patrick that he must pay the board will make in mid- Wednesday at the Detroit Pub- Rakolta. remaining anchor retailers about $320,000 – including February. Quicken, Plante & Moran lic Library’s main branch, The Detroit Economic — Macy’s and J.C. Penney — all or portions of a loan and sponsored by the station and Growth Corp. has hired Mark have announced their clos- make best-employers list gifts after his conviction the Kresge Foundation. Denson as a business attrac- ings as well. Sears is the Hospitals contributing and an income tax return – Quicken Loans, Livonia, The foundation has com- tion manager focusing on lone operating retailer. in the next 90 days, and medical supplies for Haiti and Plante & Moran, South- mitted $35 million in the pri- commercial, office and re- Harbortown Market on complete his $1 million field, made the top 100 rank- vately funded M1 light rail tail development. Jefferson Avenue in De- Local hospitals continue to restitution within four ings for Fortune magazine’s project. Denson has worked with troit has reopened after a answer the call for assistance years. latest edition of Best Compa- the Detroit Regional Econom- fire in June. for earthquake-struck Haiti. The special is part of PBS’ Over the past two weeks, nies to Work For. “Blueprint America” televi- ic Partnership, the Livonia Chrysler Group L.L.C. is OTHER NEWS Plante & Moran, ranked sion, radio and online initia- Economic Development Part- speeding up payments for Detroit-based World Medical Michigan State Universi- 66th, is making its 12th ap- tive. The TV specials are nership, the Detroit Entrepre- some engineering, design Relief has been collecting ty and WJR AM 760 will ex- supplies from hospitals, in- pearance on the list while produced by Newark, N.J.- neurship Institute and the and development work. tend their current contract, cluding the University of Michi- Quicken, ranked 29th, has based Thirteen/WNET, and One Stop Capital Shop of De- That and other new policies making the Detroit station gan Health System, Detroit appeared seven times. See funded by the New York troit. will apply mainly to parts the flagship for Spartan Medical Center and William http://money.cnn.com City-based private nonprofit Ford Land has named Chrysler will buy for com- Beaumont Hospitals. /magazines/fortune/best- Rockefeller Foundation. Donna Inch its new chair- pact and midsize cars based football and basketball man and CEO, replacing on a Fiat platform, Automo- through 2020, the AP re- Phil Horlock, who an- tive News reported. ported. nounced his retirement in Ann Arbor-based Con- The University of Michi- December. Inch was for- way Freight Inc. said it has gan regents approved $20 merly finance director for re-engineered its shipping million in renovations to the Ford customer service network to cut transit times Crisler Arena and gave EST FROM THE LOGS division. to 460 U.S. locations. unanimous support to the B B Credit counseling non- hiring of Domino’s CEO READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS COMPANY NEWS profit Greenpath Inc. has David Brandon as Michigan’s been given approval by the next athletic director dur- Tax man has no favorites The Big 4 and Lady Gaga Fenner, Melstrom & city of Farmington Hills to ing their meeting Thurs- Dooling P.L.C., a CPA and build a 100,000-square-foot day, AP reported. The tax man cometh, Right now, you’re tax consulting firm that headquarters near the even“ on benefits that probably“ wondering how had been in Auburn Hills, Farmington Hills Corpo- help the jobless. I’m going to fit Oakland cut the ribbon Thursday at rate Campus off Halsted OBITUARIES Michigan’s County Executive L. its new headquarters in Road. Unemployment Insurance Brooks Patterson and Birmingham. The 10.5-acre site was Louis Elias, worldwide Agency has begun Lady Gaga into the franchisor of the Big Boy mailing year-end Wixom-based firearm sold by Bloomfield Hills- same blog post. Well, I restaurant chain with his statements to anybody don’t have to — Carol sightings maker Trijicon Inc. based Kojaian Management brothers John and Fred, who received Cain did it for me. has volunteered to stop Corp. for $3.7 million. unemployment benefits putting Biblical references Southfield-based Signature died Jan. 14. He was 93. in 2009. ” on products it supplies to Associates was the broker. Joe Machiorlatti, owner Reporter Amy Lane’s blog on utilities” and state Reporter Nancy Kaffer’s blog on the city of Detroit the U.S. Marine Corps and Troy-based Champion of Mr. Joe’s Bar in South- government issues affecting business can be found and small business can be found Army and will provide 100 Enterprises Inc. has signed a field, died Jan. 18 of a heart at www.crainsdetroit.com/lane at www.crainsdetroit.com/kaffer free modification kits for letter of intent with a group attack. He was 75. DBpageAD.qxd 1/18/2010 2:31 PM Page 1

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ighest ranked. Again.

Consistently ranked a Small Business Administration (SBA) National Top 20 Lender, Huntington is proud to announce that we recently ranked #1 for making the most SBA loans in Michigan.

While being nationally recognized for our achievements is always an honor, it pales in comparison to the honor it is to have the trust of small businesses nationwide working with us for their ﬁ nancial needs.

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Small Business Administration ranking is based on the 2009 Coleman Report 500 for Top 50 7(a) Lenders by Number of Loans and Loan Volume. Member FDIC. ®, Huntington® and A bank invested in people.® are federally registered service marks of Huntington Bancshares Incorporated. ©2009 Huntington Bancshares Incorporated.