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www.crainsdetroit.com Vol. 27, No. 6 FEBRUARY 7 – 13, 2011 $2 a copy; $59 a year
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Page 3 Prentice: What went wrong Borders Chip maker’s expansion at out of pressure point over gas service balance Inside Doctors’ Hospital expected Expansion, e-commerce, to buy McLaren’s share, music CDs among missteps Page 5 BY DANIEL DUGGAN Crain’s List CRAIN’S DETROIT BUSINESS DUSTIN WALSH/CRAIN’S DETROIT BUSINESS With Ann Arbor bookseller Borders Senior living facilities, Two technology-laden demonstration vehicles at Visteon Corp. headquarters in Van Buren Township show Group Inc. expected to file bankruptcy as “we never stopped innovating,” said Tim Yerdon, vice president of global innovation and design. early as this week, industry watchers Page 12 point to a series of management prob- lems by a company that always fol- This Just In lowed and never led the industry. When its competitors were focused National weight loss chain Visteon charged for high-tech on superstores, Borders Group was still focused on mall stores. When breaks into Detroit market competition moved online, Bor- ders focused on bricks-and-mor- National weight loss fran- Supplier steers its future toward cockpit gadgets tar sales. chise Pounds and Inches Away When it started to expand, it went BY DUSTIN WALSH stopped innovating,” he said. “You can be the is entering the Detroit mar- too far too fast, moving to the United CRAIN’S DETROIT BUSINESS best company with the best balance sheet, but ket with a location in West Kingdom and Australia. It made a Bloomfield Township. if you don’t keep investing in your products, it Fresh off its 16-month bout in U.S. Bankruptcy will be a short-lived comeback.” push to sell CDs in its stores as the The St. Louis-based com- media format transitioned to digital. pany is opening the 1,000- Court, Visteon Corp. has emerged a stronger sup- Visteon stepped out of the shadows to show- plier poised to capitalize on high-growth tech- case its technologies at the Consumer Electron- And as Barnes & Noble Inc. and square-foot store in the Sims- Amazon.com worked on e-readers, bury Plaza on the northeast nology integration products. ics Show in Las Vegas last In October, the Van Buren month, before bringing its Borders Group worked on sell- corner of 14 Mile and Farm- ing books through its website. ington roads. Township-based supplier e- If you don’t keep two global-platform demon- merged from bankruptcy $2 stration vehicles back to its The track record is that of a The franchise owner for “ company trying merely to keep Michigan, Rebecca Brown, is billion lighter in debt and be- investing in your Van Buren Township com- gan trading publicly again last plex for a press event. up with the competition and never a licensed registered nurse lead, said Mike Souers, an industry and has been on the program month to little fanfare. Shares products, it will be In its test models, drivers were trading at $71.45 in Fri- and passengers are able to ac- analyst covering Borders for S&P for over a year. Equity Research. Pounds and Inches Away day mid-morning trading. a short-lived cess Internet radio, control Visteon has been position- ambient interior lighting and “They were always chasing has locations in Kentucky, rather than trying to figure out a Missouri, Texas and Leth- ing its product lineup to capi- comeback. integrate a gamut of electron- talize on the everyday driver’s ” ic devices — iPads, Androids, strong, long-term way to run a bridge, Alberta. business,” he said. The space was leased by increasing desire for technolo- Tim Yerson, Visteon Corp. etc. — from the driver’s or Farmington Hills-based Ger- gy in the digital world, creat- passenger’s seats. shenson Realty & Investment LLC, ing infotainment and in-dash systems based on “As a supplier, you’re trying to predict Stumbles with website global platforms and the mobile Web. three years out for a five-year model cycle,” which owns the plaza. The Standing out among the com- deal was brokered by South- This is possible because Visteon never Yerdon said. stopped spending on research throughout its The ability to control nearly every segment pany’s missteps has been its field-based Details in Retail. digital strategy. — Daniel Duggan bankruptcy, said Tim Yerdon, vice president of a car is a universal want and not just for of global innovation and design. “During the last 24 months, we never See Visteon, Page 15 See Borders, Page 18 Lewand removed from role ISTOCKPHOTO.COM in water department case A federal judge has re- moved Bodman PLC attorney Thomas Lewand from his posi- What snow day? Work goes on in the ‘virtual office’ tion as the court’s special master in a long-running BY NANCY KAFFER customers. come just that — no big deal. up and running with little to no case involving the Detroit Wa- CRAIN’S DETROIT BUSINESS Titled “SnO.M.G.,” the e-mail’s Last week’s 5 to 9 inches of local loss in productivity. ter and Sewerage Department. first image showed a snowy snowfall didn’t quite reach the At Netarx, which sells network The department has oper- Before the snow started to fall road, congested epic proportions predicted by infrastructure products and ser- last week, Auburn Hills-based Net- with traffic. In a some, but the anticipation of a vices, telecommuting on a snow See This Just In, Page 2 arx Inc. sent an e-mail blast to its second image, blizzard led many companies day was a natural fit. titled “N.B.D.,” to offer employees the option “We are a strong proponent of or “no big deal,” a of a “virtual workday,” en- what we call the ‘virtual office,’ ” man sits in a abled by tools like laptops, said April Wong, Netarx’s market- home office, video- cell phones, e-mail and Web ing manager. “Your workplace is conferencing with conferencing. more of an event and not a place. colleagues. And local com- Because of the technology tools we For many com- panies say put in place and help customers panies in metro that means put in place, you can work from Detroit, a day of they were NEWSPAPER heavy snowfall has be- able to stay See Snow, Page 18
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Page 2 CRAIN’S DETROIT BUSINESS February 7, 2011
LevelSet to develop branding, family home permits issued in all organizations withdrew their re- The lawsuit is still going for- THIS JUST IN of 2009, it lags historical figures. quest for an injunction last week ward. online strategies for Crittenton Association CEO Michael against the city of Troy in a law- Troy contends in pleadings ■ From Page 1 Crittenton Hospital Medical Cen- Stoskopf’s six-month forecast of suit over the privatization of its that the 20 percent it has kept — ter, Rochester Hills, has hired home permits shows a decline, building department. $140,607 over the first three ated under a federal consent de- Royal Oak-based LevelSet Solu- well below the level during the The homebuilders joined with months of the contract — does cree since 1977. U.S. District tions to build the hospital’s brand same period in 2010. the Associated Builders and Con- not cover the building support Judge John Feikens had oversight and create a comprehensive In- The 631 permits forecast to be is- tractors of Michigan and Michigan functions it still performs, and so of the case from its origination ternet marketing strategy. sued from January through June Plumbing and Mechanical Contrac- the city is not violating state law. until his retirement last year, The strategy will include is 24 percent below the 831 permits tors Association in a December — Chad Halcom when the case passed to Judge search engine optimization, so- issued during the same period in lawsuit, seeking an injunction to Sean Cox. cial media content and other on- 2010, Stoskopf calculated. lower Troy’s building fees and re- Luttman joins Frasco Caponigro Lewand, a member at Bodman, line marketing approaches. — Daniel Duggan turn excess fees it collected to an was appointed by Feikens in 2002; Formed in 2008, LevelSet escrow account since it out- Trusts and estates attorney Roy Cox’s order vacating the position works with clients to develop on- Community House CEO retires sourced most of its building de- Luttmann has left Troy-based Giar- of special master was dated Feb. 3. line interactive strategies geared partment functions last July. marco Mullins & Horton PC in Troy In his role as the court’s special to specific business objectives. The Community House in Birm- “We’re not against privatiza- to join Frasco Caponigro Wineman master, Lewand was paid $1.6 Goals are to develop customer ingham has launched a search for tion. We’re for it. But (Troy) is ba- & Scheible PC in Bloomfield Hills. million by the water department. loyalty and increase sales. a new CEO and president. sically taking its building fees Luttmann, 49, a member of the The appointment and resulting Planned spending was not dis- Shelley Roberts, CEO and presi- and co-opting a portion of them to Giarmarco board of directors for fees have been criticized in court closed in time for deadline, but it dent for the past 13 years, has re- help fund the rest of the city,” four years, moved in January to filings by Oakland County Water was described as a “six-figure” 12- tired to have “more personal time said Daniel MacLeish, president of start a new estate planning prac- Resources Commissioner John month contract beginning Feb. 1 to travel and enjoy other activi- Troy-based MacLeish Building Inc. tice as a partner in the Frasco McCulloch, who has asked Cox to — Jay Greene ties,” she said in a statement. and president of the Home Caponigro firm. create an interim regional au- Roberts plans to remain with Builders. “That’s against both the His practice has included es- thority to govern the system. Homebuilding permits rise the nonprofit until her successor Headlee (Amendment, to the tates planning work for former Court documents filed by Oak- is named. Michigan Constitution) and the CEO Tom Lasorda and current land County have noted that an in 2010, lag historic levels The Community House hopes state building code law.” Dodge Ram brand CEO Fred Diaz to have a new leader in place by investigation by Lewand ap- While the number of homebuild- At issue is a three-year con- at Chrysler Group LLC, Detroit Li- proved certain contracts later cit- April 1, said board Chairman Don- tract that went into effect in July ons linebacker Julian Peterson, De- ing permits in the region increased ald Kunz, who is chairman of the ed in a federal indictment alleg- between the city and Safe Built of troit Red Wings’ left wing Henrik in 2010 compared with 2009, the corporate and securities depart- ing corruption by disgraced Michigan Inc., which collects 80 Zetterberg and media personali- number of permits is expected to ment at Honigman Miller Schwartz former Detroit Mayor Kwame Kil- percent of Troy’s building depart- ties. He also administered the es- drop during the next six months. and Cohn LLP. patrick and associates. ment fees, or 75 percent if fees ex- tate for the family of the late De- In 2010, 1,860 permits were is- — Sherri Welch Earlier, Cox dissolved the sued in metro Detroit, according ceed $1 million. troit Pistons coach Chuck Daly. Southeast Michigan Consortium for to data from the Southeast Michigan The case was set for a show Frasco Caponigro practices Water Quality, a group of business Council of Governments that was an- Trade groups withdraw injunction cause hearing last week before corporate law, litigation, labor executives that advised the court alyzed by the Building Industry Asso- Oakland County Circuit Judge and employment, intellectual on oversight of the water system. ciation of Southeast Michigan. request, not lawsuit, against Troy Shalina Kumar, but the associa- property, real estate and sports (See story, Page 14.) Although that figure is signifi- The Michigan Association of tions instead withdrew their re- and entertainment law. — Nancy Kaffer cantly higher than the 1,025 single- Home Builders and two other trade quest for the injunction. — Chad Halcom Labor Experience In Your Corner. 6WDUW6DYLQJ 7RGD\ZLWK(QHUJ\ (IÀFLHQF\,QFHQWLYHV
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February 7, 2011 CRAIN’S DETROIT BUSINESS Page 3 State eyes bonds to pay UI debt Focus: Assisted Living
even so, it’s not expected to gener- ate enough money to fully pay Texas sets example; biz wants to hear more Michigan’s estimated $117 million BY AMY LANE to federal loans the state has need- into its unemployment trust fund, interest bill due Sept. 30. CAPITOL CORRESPONDENT ed to pay unemployment insur- which pays benefits. That solvency tax, assessed on ance benefits. The bond sale is among options about 54,500 “negative balance” LANSING – State officials are State Treasurer Andy Dillon last being discussed as Michigan — employers whose employee-bene- considering issuing $3.7 billion in week said he may recommend the like other states that have bor- fit claims exceed the UI taxes paid, bonds to pay off Michigan’s unem- state issue debt to pay off the $3.7 rowed federal money to pay bene- is on top of additional federal UI ployment insurance debt to the billion federal loan balance, the fits — this year must start paying taxes that began last year on all federal government. second-highest in the country after nearly 4.1 percent interest on the Michigan employers, to repay The move could give Michigan a California. debt. principal on the federal loans. lower interest rate and potentially Late last year, Texas completed An interest-related state solven- Those federal tax levels will con- With going tough, assisted reduce costs to businesses that a similar sale, issuing $2.1 billion cy tax of up to $67.50 per employee tinue to rise annually as long as living gets creative, Page 9 have faced escalating unemploy- in bonds that paid off its outstand- is kicking in this year on thou- ment insurance taxes. That’s due ing federal debt and put money sands of Michigan employers. But See Unemployment, Page 16
Company index Restaurants’ These organizations appear in this week’s Crain’s Detroit Business: American Society of Employers ...... 18 Angle Advisors ...... 15 loss was Berg Muirhead Associates ...... 18 Better Made Snack Foods ...... 3 BlackEagle Partners ...... 14 Bleznak Real Estate Investment Group ...... 11 Prentice’s, too Borders Group ...... 1 Brinks Hofer Gilson & Leone ...... 18 Cuts ‘should have Business Leaders for Michigan ...... 16 Campbell Grinder ...... 14 CB Richard Ellis ...... 17 been made sooner’ Community Central Bank ...... 4 BY NATHAN SKID Crittenton Hospital Medical Center ...... 5 Doctors Hospital of Michigan ...... 5 CRAIN’S DETROIT BUSINESS Edward Rose & Sons ...... 11 In 2009, Matt Prentice was facing Ford Land ...... 10 a mountain of debt he could not re- Fox Run ...... 9 pay and the prospect of closing his Glencoe Capital Michigan ...... 14 nine local restaurants. Henry Ford Health System ...... 5 Instead, he sold the restaurants’ Identity Marketing & Public Relations ...... 18 assets on Oct. 25 of that year to IHS Automotive Group ...... 15 longtime friend and attorney Stan- Johnson Controls ...... 15 ley Dickson Jr., a move that kept Kenneth J. Dalto Associates ...... 18 the restaurants open but set the Level One Bank ...... 4 stage for Prentice’s personal bank- ruptcy filing late last month. Michigan Assisted Living Association ...... 9 Michigan Bankers Association ...... 4 A combination of a lost lease in NATHAN SKID/CRAIN’S DETROIT BUSINESS a critical loca- Mark Winkelman, president of Better Made Snack Foods Inc., says potato sticks make up $17 million in sales. Michigan Chamber of Commerce ...... 16 tion, the eco- Michigan Commerce Bank ...... 4 nomic melt- Michigan Consolidated Gas ...... 3 down in late Michigan Department of Treasury ...... 16 2008, a loss of Michigan Opportunities Fund ...... 14 business popu- Better Made at pressure point Michigan Unemployment Insurance Agency ...... 16 lation and con- Miller Canfield Paddock & Stone ...... 16 struction on Netarx ...... 1 Telegraph Road Expansion site may hinge on impasse with MichCon Paramount Bank ...... 4 in Southfield Peoples State Bank ...... 4 Prentice contributed to BY NATHAN SKID private-label line of shoestring pressed, it releases the pressure. Plex Systems ...... 18 the Matt Prentice CRAIN’S DETROIT BUSINESS potato sticks, its most profitable The same process takes place as Prentice Restaurant Group ...... 3 Restaurant Group’s demise, Prentice and fastest-growing product. The customers tap into the gas Presbyterian Villages of Michigan ...... 9 said. Better Made Snack Foods Inc. is land needs to be close to the cur- pipeline. Rader Fishman & Grauer ...... 18 hitting a critical point in its 80- rent east-side manufacturing Wayne Fox, major-account But, although he made $1.8 mil- Redico ...... 11 lion in cuts in 2009 before the sale, year history. plant on French Road. manager for MichCon, said an Singh Senior Living ...... 9 Prentice said he also blames him- To keep all its manufacturing Schena said he has located a average household uses 0.5 psi, Sphinx Organization ...... 5 self for not reacting quickly and in the city of Detroit, it needs to parcel that would work well and compared with an average non- Trowbridge Restaurant Group ...... 17 strongly enough to the changing build a 50,000-square-foot ware- is beginning negotiations to pur- manufacturing business that conditions. house to store its private-label chase it. may use 1 or 2 psi. A large-scale United Methodist Retirement Communities ...... 10 “Cuts are hard to make, whether products. Ⅲ It needs higher-pressure nat- manufacturer may require up to Visteon ...... 1 it’s insurance cuts, pay cuts, But before it can break ground, ural gas service to increase manu- 5 psi. Waltonwood ...... 11 staffing cuts, they are all tough, it needs to increase the amount of facturing capability. Better Made Fox said it is common for a and ultimately they were made, natural gas pressure it receives President Mark Winkelman said company to require more pres- but they should have been made from Michigan Consolidated Gas that to run the additional cookers sure as it grows, and the utility sooner,” Prentice said. Co., the DTE Energy Co. subsidiary. required for the increased busi- tries to find a way to get the pres- Prentice’s Jan. 26 personal Mike Schena, Better Made COO, ness, the company needs gas pres- sure the customer needs. Chapter 7 filing in U.S. Bankruptcy said that if the company can’t sure of at least 5 pounds per “We run into this quite a bit Department index Court in Detroit showed $4.9 mil- grow in Detroit, it will look else- square inch instead of the 3 psi it when a large company puts in lion in liabilities and $256,555 in where. The Detroit expansion currently receives. specialized equipment,” Fox said. BUSINESS DIARY ...... 8 assets. According to the filing, at hinges on Better Made’s ability to Psi is based on the same princi- “A lot of the time, companies will CALENDAR ...... 8 least $2.95 million in debt is related work through two problems: ple as bike or car tire pressure. As talk to us before they purchase CLASSIFIED ADS ...... 14 Ⅲ It needs about an acre of land air is pumped into the tire, the KEITH CRAIN...... 6 See Prentice, Page 17 to build the warehouse to store its pressure rises. When the stem is See Better Made, Page 16 LETTERS...... 6 MARY KRAMER ...... 7 Crain's covers Michigan Crain's series on sustainability OPINION ...... 6 Get news from across the state THIS WEEK @ UM-Dearborn’s Sustainability in Health Care Management PEOPLE ...... 13 at crainsdetroit.com forum on Feb. 8 is part of a series that ends in March. Go to WWW.CRAINSDETROIT.COM /michiganbusiness crainsdetroit.com/crainsevents to learn more and register. RUMBLINGS ...... 19 WEEK ON THE WEB ...... 19 20110207-NEWS--0004-NAT-CCI-CD_-- 2/4/2011 6:22 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS February 7, 2011 Peoples State Bank falls closer to the edge of FDIC shutdown
BY TOM HENDERSON CRAIN’S DETROIT BUSINESS CAPITALIZATION RATIOS Peoples State Bank, beset by loan Here are tier-one ratios of equity capital to assets for area banks. According charge-offs and ongoing large loss- to the FDIC, a bank with a ratio under 2 percent is critically es, may be nearing the end of its 102- undercapitalized, between 2 percent and 4 percent is undercapitalized, between 4 percent and 6 percent is adequately capitalized and more than 6 year history. Founded in Hamtram- percent is well-capitalized. ck to serve the needs of the growing Dec. 31, Sept. 30, Dec. 31, Polish labor force in the auto indus- Bank 2010 2010 2009 try and now headquartered in Peoples State Bank -0.25% 1.78% 3.63% Madison Heights, the bank has de- pleted its equity capital, according Michigan Commerce Bank 1.15% 2.46% 3.96% to a report filed with the Federal De- Community Central Bank 1.67% 2.56% 5.67% posit Insurance Corp. Clarkston State Bank 2.26% 2.11% 1.72% Peoples Bank said in the call re- Oxford Bank 2.92% 2.52% 2.9% port, which banks are required to Fidelity Bank 3.95% 4.2% 4.81% file at the end of January for the First National Bank in Howell 4.03% 3.9% 4.25% quarter ended Dec. 31, that its equi- Bank of Ann Arbor 6.82% 6.88% 7.76% ty capital dropped from $17.4 mil- Citizens Bank 7.32% 8.1% 8.17% lion at the end of 2009 to minus Main Street Bank* 7.33% 7.94% 8.82% $1.2 million at the end of 2010. Bank of Michigan 7.67% 6.88% 7.11% Peoples’ negative equity gave it a tier-one capital ratio, a key metric Bank of Birmingham 8.15% 8.19% 9.43% eyed by state and federal regulators Shelby State Bank 9% 9.04% 9.51% that compares equity capital to as- First State Bank 9.07% 8.24% 8.37% THE MILLER LAW FIRM sets, of minus 0.25 percent. It stood United Bank & Trust 9.36% 8.31% 7.34% at 3.63 percent at the end of 2009 and University Bank 9.56% 7.26% 9.18% a professional corporation at 1.78 percent at the end of the third Huron Valley State Bank 9.57% 9.99% 11.18% quarter. Flagstar Bank 9.61% 9.12% 5.81% Anything below 2 percent is con- Crestmark Bank 9.90% 10.43% 10.41% sidered critically undercapitalized Chelsea State Bank 10.35% 10.43% 10% by the FDIC and places an institu- Ann Arbor State Bank 10.28% 10.54% 14.77% tion in danger of being placed in re- ceivership or being shut down if it Lotus Bank 11.19% 10.99% 13.49% can’t raise capital or shrink its as- Level One Bank 15.67% 10.91% 8.67% set base to get above the 2 percent First Michigan Bank 21.1% 14.37% 24.28% threshold within 90 days. *Formerly known as Nstar Community Bank, this Bingham Farms bank is not affiliated with Mt. Clemens-based Community the Main Street Bank in Northville that was shut down by regulators in 2008. Central Bank and Ann Arbor-based Source: FDIC Michigan Commerce Bank also filed quarterly reports that ranked them its semi-independent state commu- sent decree with the FDIC promis- Our firm specializes in litigation: as critically undercapitalized. nity banks into one bank under ing to improve operations. On Dec. • Complex Commercial and Business Michigan Commerce’s status was Michigan Commerce’s charter. 30 it was notified by the Nasdaq • Shareholder and Partnership temporary, though. On Jan. 28, its Michigan Commerce saw its eq- Stock Exchange that it risked being parent company, Lansing-based uity fall from $48.3 million at the delisted if it didn’t get the total val- • Automotive Supplier Capitol Bancorp Ltd., put $11 million end of 2009 to $11.7 million at the ue of its public shares above $1 mil- • Class Actions into the bank, raising its tier-one ra- end of 2010. The bank had $66.3 mil- lion by June 28. • Employment tio from 1.15 percent to 2.26 percent. lion in loan charge-offs during the Patrick Fehring, president and Peoples reported that it charged year and had a net loss of $21.4 mil- CEO of Level One, wouldn’t speak • Family Law and Probate Litigation off $12.6 million in bad loans in 2010, lion in the fourth quarter and a loss about any specific bank — his bank (248) 841-2200 with a fourth-quarter net loss of $9 of $73.6 million for the year. bought the assets of Michigan Her- 950 West University Drive, Suite 300 Community Central took itage Bank millerlawpc.com Rochester, Michigan 48307 million and a loss for the year of in Farmington Hills in $18.2 million. President and CEO $16.4 million in charge-offs during 2009 as well as Paramount’s assets Henry Thiemann did not return a the year. It reported a fourth-quar- and could be a bidder on other phone call asking for comment. ter loss of $5.4 million and a loss for failed banks — but said that low as- In August, the bank was ordered the year of $23.3 million. set ratios in themselves aren’t in- by regulators to either find in- Its equity plummeted from dicative of imminent closings. vestors willing to buy enough $34.9 million at the end of 2009 to “The best thing is to let banks try shares to get the bank adequately $8.6 million at the end of 2010. Its to work it out, and that’s what the capitalized or to find a buyer. On tier-one ratio fell from a relatively regulators are doing,” he said. Friday, its stock was trading at $.01 healthy 5.67 percent at the end of Dennis Koons, president of the a share, down from its yearly high 2009 to 1.67 percent at the end of Lansing-based Michigan Bankers As- of $1.50, making the first option im- 2010. Three months earlier, it had sociation, said that while communi- possible. been at 2.56 percent. ty banks continue to struggle and Detroit + = “Finding a buyer is going to be President and CEO Ray Colonius some may well be shut down, it’s tough. At this point, would-be buy- didn’t return a phone call Friday. remarkable how relatively few ers are probably waiting to bid on He replaced David Widlak, who banks have closed. an FDIC-assisted sale,” said one lo- went missing in September and was From 1988 to 2008, only two banks cal community banker who asked found a month later in what the Ma- in Michigan were closed by regula- not to be named, referring to bids comb County Sheriff’s Department and tors — Omnibank in River Rouge in regulators ask of potential buyers of county Medical Examiner Daniel 1998 and New Century Bank in Shelby growing with a strong (& fun!) the assets of shut-down banks. Buy- Spitz said was a likely suicide. Wid- Township in 2002. ing assets through that process al- lak was in the midst of planning a One area bank was closed in 2008, MI based company! lows banks to avoid taking on the stock offering. Main Street Bank in Northville. Four bad loans that would come with an On Thursday, the bank issued a were closed in 2009: Michigan Her- outright purchase. statement saying it faced being itage Bank in Farmington Hills, record sales growth! At 0.98 percent, Farmington placed into receivership if it didn’t Warren Bank, Home Federal Savings Hills-based Paramount Bank had the shore up its capital within 90 days. Bank in Detroit and Citizens State worst tier-one ratio of any bank in The news continues a precipitous Bank in New Baltimore. Citizens First waking up every morning! the quarter that ended Sept. 30. It decline for the bank. In June, Bauer- Bank of Port Huron, New Liberty Bank was shut down by regulators in De- Financial Inc., a Fort Lauderdale of Plymouth and Paramount Bank cember, and its assets and deposits agency that rates banks and credit were shut down last year. were bought by Farmington Hills- unions on their financial health Deposits at all banks, even the BIGGBY COFFEE Franchise Info based Level One Bank. each quarter, downgraded Commu- critically undercapitalized, are In April 2009, in response to de- nity Central from two stars to zero. FDIC-insured up to $250,000. www.biggby.com clines in revenue and net income, In November, the bank became Tom Henderson: (313) 446-0337, Capitol Bancorp combined nine of one of nine area banks to sign a con- [email protected] 20110207-NEWS--0005-NAT-CCI-CD_-- 2/4/2011 5:45 PM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 5
‘Idea: Detroit’ conference is 800-292-3831 indiantrails.com music to Sphinx creator’s ears
BY SHAWN WRIGHT “I was still a student when I NE HU O ND SPECIAL TO CRAIN’S DETROIT BUSINESS founded Sphinx and, while there NG R LOOKING FOR BRIGHT IDEAS I E T A D were tremendous resources at the R Y B E E In tandem with the Idea: Detroit A L R
Aaron Dworkin, founder and University of Michigan, I was not E S conference, the Big Ideas C 100 president of the Detroit-based Sphinx competition asks entrants to aware of any convening of social Organization, noticed 15 years ago submit their best ideas in the and other entrepreneurs where that there was an absence of black categories of arts and culture, ideas and innovative approaches and Latino classical musicians. entrepreneurship, education, could be raised, discussed and fur- While attending the University of environment and bringing people to thered,” Dworkin said in an e- Michigan in his live in Detroit. mail. “At this critical juncture in early 20s, Entrants must submit statements Detroit’s evolution, the new ideas Dworkin, a vio- of 200 words or fewer about a and innovation that arise from a linist, decided to problem, issue or opportunity and convening such as this could play do something how they would address it with a a pivotal role in moving the city solution, product or service. about the racial and the region forward.” Submissions should include lists disparity. He of who would contribute and how The conference, modeled after took his idea of the goals can be realized. Ad Age’s Idea conference held for creating a clas- The deadline for submissions is the past five years in Manhattan, sical music com- Feb. 25. As of Feb. 4, 50 will feature 14 speakers talking petition devoted nominations had already been about a specific product, innova- Dworkin to placing mi- submitted. tion or trend. Comfort and nority musicians in top orchestras Finalists will be notified by March 11 In addition to the speakers, and made it a reality. and invited to present at the March Crain’s is looking for the next crop Since Sphinx’s founding in 1996, 23 conference at the College for of innovative entrepreneurs for its t$IBSUFST Luxury Dworkin has established numer- Creative Studies’ A. Alfred Taubman “Big Ideas” contest, to be high- ous classical music education pro- Center for Design in Detroit. lighted during the March 23 con- t5PVST grams for minority children, both For more information about the ference (see accompanying box). in Detroit and in other large cities event or idea contest, visit “A conference like this cannot t4IVUUMFT www.crainsdetroit.com/2011ideas. 00 like New York. Sphinx has award- only serve as a catalyst to ignite $100 ed more than $1 million in prizes the efforts of those in the region, t$POWFOUJPO4FSWJDFT SAVE OFF and scholarships since 1998. where he will be a speaker, spon- but also provide visibility to those Dworkin will share his thoughts sored by Crain’s Detroit Business around the country about the val- t$PSQPSBUF&WFOUT and experiences at the first-ever and its New York-based sister pub- ue of investing in Detroit,” Contact Indian Trails for details. Must use this Idea: Detroit conference March 23, lication, Advertising Age. Dworkin said. t4DIFEVMFE4FSWJDF promotional code at time of booking: 2011CDB-FEB
Doctors’ Hospital expected to buy McLaren’s stake BY JAY GREENE looking for the money “to avoid Louisville-based American Hospital OPENS 53rd Annual CRAIN’S DETROIT BUSINESS the push McLaren is taking to Directory. Doctors’ lost $31.2 mil- SATURDAY (move Doctors’) into bankruptcy. lion in 2008. Doctors’ Hospital of Michigan in We are not willing to do that for a The 42 doctors own a 60 percent Feb. 12-20 Pontiac is expected this week to variety of reasons.” stake in Doctors’ Hospital, but the Detroit Cobo Center purchase the 35 percent stake that Kevin Tompkins, McLaren’s number of doctor investors is ex- Flint-based McLaren Health Care vice president of marketing, de- pected to increase if the deal is Corp. has in the for-profit physi- clined to comment Friday. consummated with McLaren, cian-owned hospital, according to Weiner said he was told the doc- Singhal said. Boat Show Yatinder Singhal, M.D., a psychia- tors approached several other hos- In 2008, the doctors and trist and chair of Doctors’ Hospital pital systems, including Detroit- McLaren purchased the shuttered board. based Henry Ford Health System and hospital formerly known as North “(The business relationship) did Crittenton Hospital Medical Center, Oakland Medical Center and Pontiac not work out and (McLaren) is try- Rochester Hills. Officials for those General Hospital. The hospital had ing to sell,” Singhal said. “The doc- two health care organizations lost $24 million from 2005-2007. tors are working hard to keep it were unavailable for comment Fri- The two leading physician in- open for the community and the day. vestors of Doctors’ Hospital are employees.” McLaren has long wanted to Anil Kumar, M.D., chair until two McLaren has approximately close 328-bed POH Regional Med- months ago, and Mahmood Khalid, $5 million invested in the hospital. ical Center, which is one of six hos- M.D. You’ve launched your career... Singhal said the 42 physician pitals it owns, and move the li- Kumar remains on the board shareholders of Doctors’ Hospital censed beds to a 79-acre medical and a shareholder. now it’s time to buy the boat! are negotiating a sale price that park it owns in Clarkston. In an interview last week, would be less than McLaren’s orig- One of its plans, reported last Khalid said he resigned from the inal investment. year by Crain’s, was to close POH Find the boat of your dreams and enjoy a well deserved taste of summer in the board six months ago because of Last fall, officials for Doctors’ and move some Doctors’ Hospital middle of Michigan’s winter. the ongoing difficulties the hospi- Hospital said they were exploring operations into POH, which would tal was facing. s (UNDREDS OF BOATS MOTORS AND ACCESSORIES sale, restructuring or capital in- make available at least 200 li- “It was taking too much of my s &AMILY FUN ENTERTAINMENT vestment from nearby hospitals or censed beds. time,” he said. physician shareholders. “McLaren has been very open NEW! Shark Encounters: Come see the exciting exhibit and fun shows He said he has been hired as a But if their efforts were to fail, that they are looking for a strate- including a shark tank with REAL sharks! radiologist at POH Regional. He CEO Clarence Sevillian II said Doc- gy to move POH,” Weiner said. 30-foot Phantom Time Bandit: tors’ Hospital, which is licensed for “That is why they got involved in declined to discuss the problems OFFSHORE RACING BOAT SPONSORED BY !NDY *OHN 336 beds, might be forced to close Doctors’ Hospital in the first surrounding Doctors’ Hospital. (ILLSTRAND CO #APTAINS OF THE 4IME "ANDIT CRAB lSHING VESSEL ON THE and lay off “all or a large portion of place.” “I am just a shareholder now TOP RATED CABLE 46 SHOW Deadliest Catch &EBRUARY and they don’t tell shareholders its (690) employees,” according to a While Sevillian said Doctors’ Be a Diver Tank: letter to the state Department of Ener- posted a profit for seven of the last anything,” Khalid said. #OMPLETE WITH A GALLON POOL CERTIlED INSTRUCTORS gy, Labor & Economic Growth. eight months of 2010, the hospital Over the past year, McLaren WILL GET YOU HOOKED ON DIVING &EBRUARY Jack Weiner, CEO of St. Joseph overall lost about $1 million for the and Doctors’ Hospital officials had Mercy Oakland, said he was ap- year. He said generating cash for discussed consolidating some ser- Save $2 – tickets and schedules at DetroitBoatShow.net proached by several physician capital improvement has been a vices between POH and Doctors’ FIND US ON shareholders of Doctors’ Hospital major problem. Hospital, but those talks did not re- FACEBOOK last month about acquiring In 2009, Doctors’ Hospital lost sult in any decisions. McLaren’s share for $3.5 million. $3.3 million on total revenue of Jay Greene: (313) 446-0325, Weiner said the doctors were $110.6 million, according to the [email protected] 20110207-NEWS--0006-NAT-CCI-CD_-- 2/4/2011 6:21 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS February 7, 2011 OPINION LETTERS Unregulated may be Moroun should submit report Editor: ting agency, saying it has no ob- Crain’s Detroit Business I am writing in response to Kei- welcomes letters to the editor. jection. th Crain’s Jan. 31 column asking All letters will be considered for The big obstacle is on the Wind- “Why not let Moroun build an ex- publication, provided they are sor side where the Canadians op- best for the Internet panded bridge?” pose the parallel Ambassador span signed and do not defame It would be more accurate for individuals or organizations. on the grounds that they want the s Nancy Kaffer reports on Page 1, last week’s storm your headline to pose the question Letters may be edited for length trucks off Huron Church Road, the may have supplied proof that thousands of people “When will Moroun seek the nec- and clarity. main street in Windsor. essary approvals from Canadian Maybe a possible compromise is could be hugely productive by working from home. Write: Editor, Crain’s Detroit A authorities?” for the Ambassador Bridge to pay And Internet providers reported huge surges in broadband use Business, 1155 Gratiot Ave., Allow me to explain. Detroit, MI 48207-2997. for a short extension of the Wind- Wednesday when so many workers stayed home. In December 2007, the Ambas- sor Essex Parkway from its cur- E-mail: [email protected] But what if employees were hobbled by their Web hookups sador Bridge Co. submitted its pre- rently planned end at the DRIC — cable, phone or wireless? What if data transfer speeds were liminary environmental impact Canadian plaza to the Canadian slowed or filtered because they were housed or sent by a com- statement to Canadian authorities bridge?” makes eminent good plaza of the Ambassador Bridge. for the building of a second bridge. That would take the trucks off the peting carrier? sense. Most of the respondents to After an initial review, the sub- the request for proposals for the local streets of Windsor. “Net neutrality” is the concept that everybody is equal on the mission was found to be signifi- Detroit River International Cross- If the DRIC were ever built, this Internet — from service providers and search engines to the cus- cantly deficient in that it did not ing said that even the bridge span extension of the parkway also tomers seeking access. Which means that companies like AT&T give any consideration to how the alone was not self-supporting with would place the two bridges on a or Comcast, which now owns NBC Universal, couldn’t charge expansion of the Canadian inspec- tolls, and that they would need on- level playing field to compete in tion plaza facilities resulting from customers more — or even block or slow access — if they wanted going subsidies — because poten- terms of equivalent connections to a twinned bridge would affect the tial traffic is insufficient to sup- Highway 401. to watch online programming from a competitor. existing area. port it. Cintra (Infraestructuras However, I doubt anything sen- Most people don’t give this a second thought, but net neu- The bridge company was in- S.A.U., Madrid, Spain) and Aecom- sible like this will happen as long trality is a huge issue in Washington, where the Federal Com- formed of this. Yet, more than three Meridiam’s responses suggested as Moroun owns the Ambassador munications Commission is busy trying to establish rules to years after it submitted the original they might be able to do the span Bridge. report, and despite several requests regulate the Internet. without subsidies. He and his people evoke such from the government of Canada, it Trouble is, the Canadian offer to visceral hatred on both sides of the And U.S. Rep. Fred Upton, the Michigan Republican who has yet to submit a revised environ- fund Michigan’s expenses is not river — some of it understandable now chairs the House Energy and Commerce Committee, mental impact statement. free money, as DRIC enthusiasts — that the bridge probably needs If and when the bridge company wants the FCC to back down on Internet rule-making. in Detroit constantly proclaim it to be sold to a new set of owners completes its environmental as- As more and more people hog bandwith by watching video is. The Canadians say they want and the Moroun political baggage sessment work, the environmental online, some service providers see opportunity by creating an arrangement under which their washed down the river. review process in Canada can get $550 million is “recouped” from Peter Samuel higher-priced “fast lanes.” And many folks want to keep it one- under way. tolls. The DRIC tolls are being Editor, Tollroads News price-fits-all. The government of Canada has stretched awfully thin. Frederick, Md. no interest in disadvantaging the From a consumer standpoint, it seems like a dial-up versus This financial fact is totally ig- Ambassador Bridge’s long-term broadband conundrum: If you want better access and greater nored in all the euphoria about Bridge column simplistic sustainability and has repeatedly speed, you pay more. Many businesses pay more for high- Gov. Rick Snyder’s conversion to said it would not block “twinning” Editor: speed connections that can handle enormous gobs of data. if that option were to receive the en- the DRIC. There is no full traffic Keith Crain’s column in the Jan. But the Internet has also had a huge benefit for small com- vironmental and other approvals and revenue study for the DRIC 31, “Why not let Moroun expand panies. With the right message, product and search-engine op- that it, like the Detroit River Inter- (just a traffic-only study). his bridge?” makes a simpleton’s Snyder has foolishly got himself argument that ignores critical and timization strategy, small companies can compete with much national Crossing, requires. onto the horns of a nasty dilemma. salient facts and is wrong on the larger ones in reaching customers. If providers start favoring DRIC has received all of its envi- ronmental assessment approvals. Since being installed as governor, private money vs. public money their biggest customers, that could be a problem. Until a similar process is complet- he has aroused huge expectations thesis. For now, though, this seems more theoretical than practi- ed for the Ambassador Bridge pro- that the DRIC will now be built, Important facts: cal. After all, the Internet has largely been unregulated. Maybe ject, it is misleading and inaccu- while having run on a campaign Ⅲ Canadians don’t want expan- it doesn’t need regulation now, either. rate to talk about “twinning” as if pledge not to put Michigan taxpay- sion in downtown Windsor and it were a real option. ers on the hook. have spent years planning and fi- If it’s an option that the Ambas- Either he breaks that tax pledge nancing their future infrastruc- sador Bridge is serious about, it and puts the taxpayers of Michigan ture needs to stimulate growth and Don’t be snowed by studies should provide the documentation firmly on the hook of subsidies, or use a new span south of the Am- necessary for the environmental he disappoints all those now so ec- bassador. Snowmageddon, Part 2: Because you can find a study to assessment process to proceed. static about his conversion to the Ⅲ Michigan and the U.S. need prove just about any point, IHS Global Insight, a Boston con- Roy Norton DRIC cause. It will be fascinating to Canadian support (they are our Consul General of Canada see how he handles this. sulting firm, projected that the storm had an impact of about Detroit partners; it is critical public infra- On opposition to the parallel $251 million a day in lost economic benefits. structure to both countries), so Ambassador span, the Michigan Moroun’s wishes to maintain his Who paid for the study? Cheering clouds facts Department of Transportation al- lucrative monopoly (whether with Not surprisingly, it was the American Highway Users Al- Editor: ways tells me it doesn’t oppose it public or private money) don’t liance, which supports steering more public dollars to road Keith Crain’s Jan. 31 column, and cites a formal letter to the maintenance. “Why not let Moroun expand his U.S. Coast Guard, the U.S. permit- See Letters, Page 7 KEITH CRAIN: Chrysler Super Bowl spot worth cheering I don’t know how many people quarter of the game. It high on a couple of tele- is a reality show about a pawnshop If you saw the commercial, you saw the Super Bowl on Sunday, was nothing short of vision shows that start- on Eight Mile in Detroit. would agree: It makes you feel but I’m sure the basic rule was fol- spectacular for the city ed running recently, It features a man, his son and proud to be living in this commu- lowed: The commercials generated of Detroit. one on broadcast the daughter who own this pawnshop nity. I am told that it took special as much interest among viewers I don’t know if they other on cable. and seem to be forever in conflict permission to run this two-minute as the game itself. were interested in sell- We all know about with their customers. If that’s not commercial during the Super Considering that a 30-second ing any Chrysler cars, “Detroit 1-8-7,” a police bad enough, they take great de- Bowl since they normally allow commercial costs around $3 mil- but I sure was over- drama on ABC that light in showcasing the worst only 90-second interruptions of the lion, this football game could gen- whelmed because the seems to revel in show- parts of our city. It is simply a hor- game. erate more revenue than any other spot was all about our ing the worst parts of rid show for our city. I am not sure what motivated single sporting event in the coun- city. It was the best Detroit. But that show Meanwhile, Chrysler didn’t stop the company to spend all that mon- try. piece of promotion and doesn’t hold a candle to with a 30-second spot. Its Super ey on a two-minute commercial for But I was particularly struck by marketing for our com- the worst piece of pro- Bowl commercial ran two minutes. the Super Bowl, but every single the Chrysler commercial that was munity that I have ever seen. motion for Detroit I have ever It’s a great story for Chrysler, but one of us living here can be very scheduled to run during the third I have to admit that I’m not very seen. “Hardcore Pawn,” on truTV, it’s an even better story for Detroit. proud and pleased that they did. 20110207-NEWS--0007-NAT-CCI-CD_-- 2/4/2011 11:05 AM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Let’s tug coupon pioneers’ metro Detroit ties
Groupon is the latest darling of ting with this dynamic, been acquired and thing” for this state. or and celebrate a valued col- the Internet age. early 40s duo. moved to Chicago. So how about tapping Keywell league. CFOs typically don’t get a And the two guys who put that Crain’s Chicago Busi- But overall, the two and Lefkosky? Maybe their fund lot of limelight — unless the com- company on the dot-com map hap- ness reported Jan. 31 University of Michigan will invest in promising Detroit pany’s balance sheet goes south in pen to hail from the Detroit area. that their Lightbank in- grads have done well companies, too. a big way. Eric Lefkofsky and Brad Key- vestment fund was fuel- for themselves and If you’d like to nominate — or well invested the first million dol- ing hopes “that Chicago spectacularly well for apply — check out the application lars in Andrew Mason’s idea of can finally become Sili- their investors. Spotlight on CFOs form at www.crainsdetroit.com creating viral couponing. The rest con Prairie.” One of the more in- The search is on for top finan- /section/nominate. Also, more de- is history. Now Lefkofsky and Not everything these triguing projects Busi- cial talent in our region. Crain’s tails on Page 13. Keywell have at least $100 million guys have touched is ness Leaders for annual CFO of the Year event will to invest in other companies, golden: About the time Michigan is undertak- be June 15, but the hunt is on now Mary Kramer is publisher of making Chicago a hot spot for in- the dot-com bubble ing is creating a list of for nominees for that honor, in Crain's Detroit Business. Catch her vesting. burst, their online pro- successful entrepre- public and private companies and take on business news at 6:10 a.m. But both of these guys hail from motions company venture, Star- neurs and corporate chieftains nonprofit/government organiza- Mondays on the Paul W. Smith show metro Detroit; Lefkofsky has fami- belly, went belly up after it was who once hailed from Michigan. tions. on WJR AM 760 and in her blog at ly here; Keywell’s personal web- sold to Ha-Lo, a one-time Detroit- Many of them, says BLM chief This has proven to be a terrific www.crainsdetroit.com/kramer. site lists him as an active investor based promotions giant that had Doug Rothwell, want to “do some- way for C-suite executives to hon- E-mail her at [email protected]. in a local company, Archer Corpo- rate Services LLC, the marketing fulfillment company founded by former Detroit Mayor Dennis Archer’s son. So maybe Gov. Rick Snyder and University of Michigan President Mary Sue Coleman should be chat-
LETTERS CONTINUED ■ From Page 6
matter. The countries don’t re- port to “Matty” Moroun. Ⅲ The notion that there would be no need for public guarantees or investment in Moroun’s ex- pansion plans is incorrect. Con- sider the upgrades and toll booths he built on the Detroit side in violation of the agreed- upon plans with public money. Tony Infante Brighton
A hostile government Editor: Allowing or not allowing “Matty” Moroun to expand his Ambassador Bridge shouldn’t even be a matter for government discussion or examination. Kei- th Crain’s position on this mat- ter (“Why not let Moroun expand his bridge?” Jan. 31) is absolute- ly correct. Tragically, today we find gov- It’s time for your business to ernment at all levels becoming increasingly hostile to private enterprise regardless of its accomplish big things again. rhetoric. Washington’s actions, not its words, provide the evi- dence. Government today in- creasingly believes that it should control, if not own, an ever-increasing share of the economy and infringe upon everyone’s liberties. In the gov- ernment’s view, why shouldn’t the government collect those bridge tolls? Canada strongly espouses gov- ernment ownership of this Now’s the time to reinvest in your business’ future. bridge. Canada is further down The last few years haven’t been easy. It’s been work just to maintain the business you’ve built. the collectivist path than we are. The citizens in this country are It’s time to get back to growing it. Whether that means buying new equipment, improving your increasingly becoming aware of working capital, or reinforcing your overall finances, Fifth Third Business Bankers can help you big government’s ominous reach, and they don’t like it. take action to get your business moving forward with confidence. Stop in your local Fifth If private enterprise is unable Third Banking Center, call 1-866-534-7249, or visit 53.com, and let’s get your business moving. or unwilling to undertake the needed project, then government has a legitimate reason to fill the void. That’s not the case here. Loans subject to credit review and approval. Fifth Third Bank, Member FDIC. Equal Housing Lender. Joseph Majcher Orchard Lake 20110207-NEWS--0008-NAT-CCI-CD_-- 2/4/2011 11:04 AM Page 1
Page 8 CRAIN’S DETROIT BUSINESS February 7, 2011 Mission A+ BUSINESS DIARY ACQUISITIONS Rockbridge Growth Equity LLC, Livo- ductors using its epoxy pipe lining nia, led the acquisition of Connect Would you give your American Axle & Manufacturing Hold- process. America LLC, Broomall, Pa. Falcon In- ings Inc., Detroit, has assumed full SolidThinking Inc., Troy, a global con- law firm an A+? vestment Advisors LLC, Boston, Mass., ownership of the cept design and styling software com- AAM Sona Axle Pri- partnered with Rockbridge in the ac- vate Limited Joint Venture, Pantnagar, pany, signed the following new clients: It could happen. quisition, providing subordinated Axio, Cardiff by the Sea, Calif., a lug- India, from Sona Koyo Limited, debt and preferred equity financing. The attorneys at McDonald Hopkins Haryana, India. gage company; Best SpA, Cerreto D’Esi, Ken Gross, Connect America’s Italy, a manufacturer of kitchen hoods; are on a mission to earn the highest Altair Engineering Inc., Troy, a provider founder and CEO, will continue to be a , New York, a luxury of simulation technology and engineer- Bottega Veneta grades from every client. substantial owner in the company and fashion designer; Educa Borras SA, ing services, acquired Acusim Software will continue as CEO. Barcelona, Spain, a manufacturer of ® Inc., Mountain View, Calif. Attorneys on a Mission family games and puzzles; HaroDesign Conifer Holdings Inc., Southfield, ac- CONTRACTS Inc., Cardiff by the Sea, Calif., a design Your mission is our mission. quired Mid-Continent Insurance Co. Beaumont Hospitals, Royal Oak, con- firm; Hintegra srl, Conselve, Italy, a We never lose sight of it. Inc., Somerset, Pa., from the Fetterolf tracted Jones Lang LaSalle, Chicago, to store display design firm; Luidia Inc., Group Inc., Somerset, Pa. provide all of Beaumont’s health care San Carlos, Calif., a global provider of IAC Group, Dearborn, an auto supplier, facility services including facility man- idea-capturing systems; Maped, An- acquired the automotive assets of New agement, construction program man- necy, France, a manufacturer of art Delhi-based Multivac India Private Limit- agement, utility operations, energy and supplies and accessories; Oneida Ltd., ed, a tier-one supplier of automotive in- sustainability services, property man- Oneida, N.Y., a design, sourcing and ® A business advisory and advocacy law firm terior systems and components to the agement, biomedical equipment main- distribution company for stainless- 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 automotive market in India. tenance and service management, lease steel and silver-plated flatware; administration, portfolio strategy and Carl J. Grassi Stephen M. Gross Magna Seating, an operating unit of Pelikan, Feusisberg, Switzerland, a President Detroit Managing Member Magna International, Troy, acquired real estate transaction services. manufacturer of fine writing instru- automotive seat supplier Pabsa SA, Plumbing Professors, Canton Town- ment products; Safilo Group SpA, Pado- Chicago • Cleveland • Columbus • Detroit • West Palm Beach Buenos Aires, Argentina. The new en- ship, a plumbing and sewer repair va, Italy, a manufacturer of sunglasses tity will operate as Magna Seating Ar- company, has been contracted by the and optical frames; and Spartech, Clay- www.mcdonaldhopkins.com gentina. state of Ohio to re-line rain water con- ton, Mo., a producer of plastic products.
CALENDAR TUESDAY FEB. 8 SEE RICK SNYDER, NEWSMAKER UM-Dearborn Sustainability in Health OF THE YEAR, ON FEB. 14 Care Management. 7:30-10 a.m. Crain’s Detroit Business salutes Crain’s Detroit Business. With William Alvin, president and CEO, Health Al- Gov. Rick Snyder, 2010 liance Plan and senior vice president, Newsmaker of Henry Ford Health System; Vernice the Year, Feb. Davis Anthony, president and CEO, 14, 11:30 Greater Detroit Area Health Council; a.m.-2 p.m., at and others. University of Michigan- Joe Louis Dearborn. $35, $30 each for groups of Arena. 10 or more and UM faculty and stu- His election dents, $50 at the door. Contact: (313) and his action- 446-0300; e-mail: oriented plans [email protected]; website: www.crainsdetroit.com. led to his selection; he Snyder wants the Fresh Perspectives on Assertive vs. state budget to Aggressive Behavior. 6-8 p.m. The be done no later than July 1 and a Michigan Council of Women in Tech- new business-tax system to start nology. With Delores Cephus, presi- six months later. dent and principal consultant, Consol- idated Professional Services. The Tickets are $75 at the door; Epitec Group, Southfield. Free for advance tickets are $60 each, MCWT members, $20 nonmembers, $5 $55 for groups of 10 or more and students. Contact: (248) 654-3697; e- $50 for members of Inforum or the mail: [email protected]; website: Detroit Economic Club. Call (313) mcwt.cuveventreg.com. 446-0300 for discounted tickets; for more information, e-mail [email protected] or visit WEDNESDAY www.crainsdetroit.com. FEB. 9 Women & Money — Overcoming the COMING EVENTS Challenge. 5:30-8:30 p.m. Executive Women International Detroit–Wind- State of the Industry Dinner Section sor Chapter. With Robin Thompson, Meeting. 5:30-8:30 p.m. Feb. 15. SAE money coach, WXYZ Channel 7. Detroit Section. With David Cole, Masonic Temple, Detroit. $45. chairman emeritus, Center for Auto- Contact: (734) 462-8557; e-mail: motive Research; Neil De Koker, presi- ewidetroitwindsor.org; website: dent and CEO, Original Equipment Lease Dragging You Down? ewidetroitwindsor.org. Suppliers Association; Lonnie Miller, vice president, marketing and indus- try analysis, R.L. Polk & Co.; Jason Whether you currently lease 3,000 square feet or Lease Renegotiation ABWA Novi Oaks Monthly Meeting. 6- Stein, editor, Automotive News; and 8:30 p.m. The Novi Oaks Charter David Schutt, CEO, SAE Internation- Chapter of the American Business own twenty-five locations, Plante Moran CRESA Tenant Representation al. San Marino Club, Troy. $40 mem- Women’s Association. With Maureen bers, $55 nonmembers, $15 students, Krauss, director of economic develop- is an independent, fully integrated, real estate $400 table of 10. Contact: (248) 324-4445; Incentives ment and community affairs, Oakland e-mail: [email protected]; web- consulting firm that will act as your unbiased advisor. County. DoubleTree Hotel, Novi. $16. site: www.sae-detroit.org. Sale Leaseback Contact: (734) 634-8383; e-mail: Contact us today to lower your real estate costs. [email protected]; web- site: www.abwa-novi.org. The Detroit Opportunity. 11:30 a.m.-1:30 (248)223-3500 pmcresa.com Project Feasibility p.m. Feb. 16. With Jill Ferrari, director of community development, Wayne Lease Administration THURSDAY County Economic Development FEB. 10 Growth Engine; Mark Denson, busi- ness attraction manager, Detroit Eco- Buyer Representation Ann Arbor Ad Club Addy Awards. 7-9 nomic Growth Corp.; Matt Clayson, di- p.m. ULitho; AnnArbor.com; rector, Detroit Creative Corridor Project Management re:group; The Lindsay Exhibit Group; Initiative; and Rachele Downs, imme- Hile Design; RJ Conlin; Design Hub; diate past president, Crew Detroit. Move Communications; Bandoni Cre- Doubletree Guest Suites Fort Shelby ative; Steve Kuzma Photography. Live Detroit. $35 members, $40 nonmem- at PJ’s, Ann Arbor. $30, $25 students. bers, add $10 after Feb. 9. Contact: Contact: (734) 645-7490; e-mail: (785) 832-1808; e-mail: [email protected]; website: [email protected]; web- www.a2ac.org. site: www.crewdetroit.org. 20110207-NEWS--0009-NAT-CCI-CD_-- 2/4/2011 11:03 AM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 9
A CONVERSATION WITH
Brenda Roberts, Michigan Assisted Living Association assisted living
Brenda Roberts is director of quality assurance and education at the Livonia-based Michigan Assisted Living Association, which provides advocacy and education for assisted living providers. She spoke with reporter Sherri Welch about trends in assisted living. How have assisted living services changed in the past five to 10 years? The whole concept of aging in place — people are coming to us at a more advanced age. The trend is that folks are waiting until they are older and more frail until they seek assisted living … and saying to providers this is the last move they want to make. So our assisted living agencies are working much more closely with home health care and hospice agencies to make that one move a reality. Are there more partnerships forming around assisted living communities? Why? Absolutely. It’s centered around keeping people in their apartment or assisted living community or their residence. Assisted living homes with smaller campuses (in particular are) bringing in supportive services so people can stay in that home for life. JOHN SOBCZAK Executive Director Mike McCormick of Fox Run in Novi says the depressed housing market leaves many seniors needing Those services include home health a boost to get into assisted living. care, skilled services, rehab services, post-hospital services, hospice agencies and pharmacies. Any other trends in assisted living? We’re not institutionalizing people anymore. We’ve learned seniors are vital and have the ability to continue to Nursing the business model give and to gain from the community. The operators are … tailoring their community engagement opportunities In tough economy, assisted living sector gets creative, eases prices to individual interests. One woman who came in used to get flowers from the BY MARTI BENEDETTI quires a $99,000 entrance de- tance. money is not going to last funeral home and rearrange them for SPECIAL TO posit, refundable when the res- Often, a senior living com- through retirement, and sell- homebound seniors. The assisted living CRAIN’S DETROIT BUSINESS ident moves out or dies; the de- munity offers both, along with ing their home is hard, so they community she lives in never did that sposit is paid back 30 days after skilled nursing, which in- put off moving for one more before. Now, other ladies come down still-lagging real estate somebody else moves in. volves a more expensive, high- year,” he said. and help her with the flower arranging, market and competition Additionally, residents pay er level of medical care. Often, community-based sup- and when someone is homebound or A among Detroit-area assist- an average of $6,000 a month, West Bloomfield-based Singh port resources can help keep sick in their apartments, they deliver ed living facilities have created flowers. with the specific costs varying Senior Living, owners and man- people in their homes longer monetary incentives and more widely depending on the level agers of Waltonwood centers, with use of home health care Are the assisted living centers choices for potential residents of care needed. has seven properties in Michi- professionals and telemedi- increasingly leveraging more types of and their caretakers. Assisted living refers specifi- gan and one in North Carolina. cine, said Thom Hosinski, COO funding ? Assisted living has been Local assisted living center cally to centers that provide a Earl Parker, vice president of of Southfield-based Presbyterian traditionally a private-pay industry. executives said the business place to live with medical care, senior living for Singh, agreed Villages of Michigan and vice Only those people with resources had model is being affected by local meals and activities. It is not customer perceptions and re- president and executive direc- been able to access that as an and national trends: The tough the same as independent liv- quirements are changing. tor of its Village of Redford option. Now there are waiver economy and the glut of homes ing, which is for those who “The economy is giving peo- property. programs that take traditional for sale have made it challeng- need little or no medical assis- ple more of a fear that their “Because of health care re- Medicaid dollars that paid for nursing ing for some seniors to sell home care and (pay) for other options form and rising costs, we will their homes at a price they see this more,” he said. such as assisted living services and think is fair. home- and community-based health But when seniors are ready, Adjusting to the market has Senior residents go high-tech care and social services. People still they also increasingly expect required creativity and, in living in their own homes may face a Technology is changing the Roberts, director of quality as- housing operators to be flexible waiver waiting list to get assisted some cases, discounts. game with assisted living resi- surance and education for the and offer a high level of care. living services in their own home. But Mike McCormick, executive dents’ entertainment offer- Michigan Assisted Living Associ- Waltonwood does not re- if they are in a nursing home, the director of the Fox Run commu- ings and safety measures. ation, a trade association for quire an entrance fee and money is readily available to help you nity in Novi, said residents are While they still might pass nonprofit and for-profit assist- charges, on average, $4,000 a transition out to another setting. It’s middle to upper-middle in- the time with bridge or bingo, ed living centers. And cam- month for assisted living. Be- providing the choice they want, and at come, and the center has been assisted living residents also eras in the hallways of assist- cause the Detroit market is the same time it saves the state affected by seniors selling their are playing Wii Fitness and Wii ed living centers help staff competitive, the center is offer- money. homes for less than what they Bowling, video games and log- keep track of residents. ing rent reduction incentives expected — or not being able to ging time on their computers. Telemedicine includes elec- on some of its properties, de- sell at all. So it has an on- “IPads are great for them tronic medical devices that pending on location, Parker premises real estate agent to and easier to use than com- help seniors live easier. It said. If you know help prospective customers sell puters,” said Thom Hosinski, could be a mechanism to re- Presbyterian Villages of someone interesting their house. Additionally, de- Presbyterian Villages of Michi- mind seniors to take their Michigan, meanwhile, does not in nonprofits or pending on the location of the gan COO and vice president medicine and dispense the ap- charge an entrance fee. Its services Sherri living unit, the center will and executive director of its propriate amount of pills, or a monthly costs, which include Welch should shave a couple of hundred dol- Village of Redford property. device worn by seniors that interview, call (313) medical help, meals and activi- lars off the monthly fee for one 446-1694 or write Seniors also are Skyping as allows them to signal for help ties, average $2,500. It has 25 [email protected] to three years. a way to keep in touch with if they are in distress. centers in Michigan with vari- Fox Run, owned by Balti- their families, said Brenda — Marti Benedetti more-based Erickson Living, re- See Assisted living, Page 10 20110207-NEWS--0010-NAT-CCI-CD_-- 2/4/2011 11:00 AM Page 1
Page 10 CRAIN’S DETROIT BUSINESS February 7, 2011 Focus: Assisted Living Assisted living: Success requires added biz care ■ From Page 9
ous cost structures and services. Hosinski said residents coming into assisted living are older and The major more frail, and have fewer “ assets than they had a few influences for years ago. “They need a higher the changes in level of care,” he said. this field are the The average age of resi- dents in assisted living fa- adult children cilities in 2009 was 86.9 years old. Seventy-four — baby percent are female, ac- cording to a report by the boomers — who American Association of Homes and Services for the Aging, the American have high Senior Housing Association, the As- sisted Living Federation of America, expectations. the National Center for Assisted Liv- ” ing and the National Investment Cen- Joanne Robinson, ter for the Seniors Housing and Care Presbyterian Villages of Michigan Industry. Ten years ago, the average age System’s Center for Senior Inde- was 80. pendence. “The amount of care and the The center provides both onsite type of amenities are more expan- and offsite care and services to sive than ever before,” said those who are nursing home-eligi- Joanne Robinson, senior vice pres- ble but prefer to age in their own ident of operations at Presbyterian home and community. Those ser- Villages of Michigan. vices could include not only “The major influences for the health care but assistance with changes in this field are the adult bathing and access to hair ap- children — baby boomers — who pointments and social functions at have high expectations,” Robinson the center, or even help doing the said. laundry at home. Erickson and Ford Land also de- “We’re able to keep (seniors) veloped the Henry Ford Village out of a nursing home by provid- center in Dearborn, which pro- ing those services, which the state vides a full continuum of care. has said ultimately improves Henry Ford Village is owned by a one’s quality of life and reduces nonprofit board. In December, its the cost of health care,” said John management company changed Polanski, president and CEO for from Erickson Living to Des community care services at Hen- Moines-based Life Care Services ry Ford. A BRIGHTER FUTURE LLC. The project is also mindful of FOR COMMERCIAL FACILITIES Henry Ford Village is reviewing the cost burden to seniors and its cost structure for assisted liv- their families. ing and expects changes in the United Methodist Retirement Com- In its sixth year, the Nichols Green Facilities coming year, said Adam Sterling, munities won funding from the Conference will offer a full day of education on center sales director. Michigan State Housing Development YOU FIRST Currently, it charges a $99,000 Authority for the affordable assist- IHDWXUHVEHQHßWVDQGFRVWPDQDJHPHQWRIJUHHQ refundable entrance fee. Its range ed living component of the project Save the Date: March 30, 2011 EXLOGLQJVDVZHOODVGLVSOD\SURGXFWVIRUJUHHQ of fees for assisted living is $3,892 as the second of five pilot sites se- FOHDQLQJDQGIDFLOLWLHVPDLQWHQDQFH3DUWLFLSDQWV to $5,863 a month depending on the lected for state funding, following 8QLYHUVLW\RI0LFKLJDQ'HDUERUQ amount of care a resident needs. another built by Genesis Nonprofit Fairlane Center FDQH[SHFWNH\QRWHVSHDNHUVDQGGLVFXVVLRQVRQD The average rate is $5,253, mean- Housing Corp. in Grand Rapids. YDULHW\RIZRUNVKRSWRSLFVLQFOXGLQJFDVHVWXGLHV ing most residents need a good Monthly lease rates haven’t yet deal of care. been set, Presbyterian Villages RI/(('EXLOGLQJVDQGVWUDWHJLHVIRUPDLQWDLQLQJ Brenda Roberts, director of said, but they will be subsidized in DKLJKSHUIRUPDQFHKHDOWK\IDFLOLW\ quality assurance and education exchange for the MSDHA funding. for the Michigan Assisted Living As- Centers that offer a range of sociation, a trade association for care — while providing a home- nonprofit and for-profit assisted like atmosphere — are in demand, living centers, said despite the McCormick said. Fox Run has on- pressure on operators because of site physicians, a bank, store, the state’s economy, the industry restaurants and a 250-seat perfor- in Michigan is generally healthy. mance art center. Overall occupancy levels are Its social outlets are extensive. stable, although she has seen a “The real problem for seniors is slowing of the development of new when it is seven degrees outside facilities. Some Michigan opera- and they can’t leave their homes tors are building in other states in and they begin to feel isolated. the interim (See story, Page 11) or They can talk on the phone, but are working on creative collabora- that has its limitations. Socializa- tions to leverage incentives and tion opportunities are underesti- credits. mated, but paramount,” Mc- A new $35 million senior com- Cormick said. munity that Presbyterian Vil- “What technology doesn’t bring lages is developing near Detroit’s is human contact,” Hosinski said. east riverfront will include not “Assisted living provides rela- 1LFKROV&RUSRUDWH2IßFHV/(('(%*ROG only independent living, residen- tionships and meaningful activi- tial nursing home units and af- ties.” 1LFKROVZZZHQLFKROVFRP fordable assisted living, but also a Sherri Welch contributed to this second site for Henry Ford Health story. 20110207-NEWS--0011-NAT-CCI-CD_-- 2/4/2011 11:02 AM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 11 Focus: Assisted Living ShowShow Them Them What What Apartment developers turn YouYou StandStand For For
BBB Accreditation is a commitment to senior housing to add work to fairness and honesty that lets Bleznak Real Estate In- BY DANIEL DUGGAN Arbor-based consumers know you are a business vestment Group. CRAIN’S DETROIT BUSINESS Bleznak entered the senior they can trust - a business that After 90 years of developing housing sector in the early 1990s apartments and establishing one when his firm took over an exist- honors its promises and embodies of the largest portfolios in the ing senior housing business. After confidence they deserve. country, the Edward Rose & Sons 10 years in the business, his firm real estate company is moving in a developed a portfolio of five Ma- different direction. comb County senior housing de- Your customers start with The Farmington Hills-based velopments before selling the en- bbb.org. apartment developer is taking its Rose Watchowski tire business to Chicago-based experience into the senior housing Walton Street Capital LLC in 2007. Shouldn’t you? sector with a project set to start Ecumen, which has 5,000 units Bleznak has been acquiring construction in Tennessee. under management in Minnesota, apartment complexes, adding to The move, said CEO Warren Idaho, North Dakota and Nebras- his 2,500-unit portfolio, but he’s Rose, is a way to keep the compa- ka, is teaming up with Edward been looking to re-enter the senior ny’s construction pipeline busy at Rose & Sons in a joint-venture en- housing market. a time when there is less demand tity for the Tennessee project. “We’ve been looking at senior to build apartment buildings. With half of Ecumen’s portfolio housing, and it’s just like getting “As we look at business opportu- managed on behalf of other compa- involved with apartments in a nities, the apartment market is not nies, Wollschlager said operating a sense,” he said. “You come in at at a point where new development senior housing operation isn’t as the right cost basis, purchase as- is necessary,” Rose said. easy as developers often think it is. sets through loans or from banks And Rose isn’t the one only with Knowing how to operate a senior — strategically, that’s the way to that idea. housing operation means having a get the right valuation. Other developers are entering very clear grasp on regulatory is- “There are hard parts of that ® the senior housing sector for de- sues, such as if and when a patient business,” he said. “But if you’re Start With Trust velopment and acquisitions or re- needs to be transferred from inde- in it for the right reasons, it be- lying on senior housing divisions pendent living to assisted living. comes part of you. There’s more to keep their companies busy. “I wish I had a nickel for every currency than money when you’re project that’s come to us after a de- working with the families, helping Better Business Bureau In the case of West Bloomfield- Serving Eastern Michigan and the Upper Peninula based Singh Development LLC, the veloper got in over their head,” people get to a position to not have firm’s senior housing division, said Wollschlager. to worry about their loved ones. Call 248-223-9400 to learn more Waltonwood, is the only division ac- It’s that dynamic that prompted “I don’t get that from other parts tively building a project, said Mike Rose to form a joint venture as a of the real estate business.” or go to bbb.org Kahm, vice president of develop- way to enter the market, he said. Daniel Duggan: (313) 446-0414, ment for Singh. “We spent a year investigating [email protected] The company currently is build- this,” he said. “We wanted to part- ing a 174-unit complex in Cary, ner with a quality company in the N.C. “We see a logical need for se- sector to help us develop this busi- nior housing, demographically,” ness line.” he said. “That population will con- At Singh, the senior housing tinue to grow for 20 years, includ- sector was built without a partner, ing in Michigan.” over the course of more than 20 Similarly, Redico LLC, a South- years, Kahm said. field-based development company, In 1989, the development compa- made a move into the senior hous- ny opened its first senior housing ing market in 2008 by forming a facility in Rochester Hills near joint venture to take an ownership Walton and Adams roads — source stake in 18 senior housing facili- of the Waltonwood name for the se- ties from American House senior nior housing division of the firm. housing, along with the 750-person Since then, the division has de- operating company. veloped six other projects in Michi- Redico CEO Dale Watchowski, gan and is now building an indepen- also CEO of American House, said dent care, assisted living and the key to the deal was access to memory care facility in Cary, N.C. the operating company. Without It is the only construction project the ability to operate a senior under way for the company. housing development with the Kahm said Singh has honed the right staff, the project is destined skill of running senior housing. plan a perfect to fail, he said. “The management side is vastly different than an apartment pro- ’ “That’s why it’s a high barrier to valentine s entry,” he said. “Unless you are in ject,” he said. “It’s like a four-star the industry, you are destined to hotel with a medical facility on top.” dinner for this special fail.” Apartment developers need to Through the two companies, understand the regulatory side, Redico plans to start construction Kahm said. soon on an American House senior “It’s all licensed. There are strin- day. housing development in Dearborn gent standards that must be met,” as part of a mixed-use development he said. Redico developed. The company is In addition, there are staffing also using the operational expertise challenges. While an apartment of American House to consult with can be run by a small management banks and lenders on foreclosed fa- staff, a senior housing facility is cilities in Michigan and the Mid- more like a small company. west, Watchowski said, declining to “After we’re done building,” he name specific properties. said, “we’ll add 100 people to the Extended hours Valentine’s Day weekend. Dana Wollschlager, director of payroll.” real estate development for Shore- Once the landscape of running Troy | 248.269.8424 | 755 W. Big Beaver Rd. view, Minn.-based Ecumen, also an operation is learned, the indus- said senior housing management try presents a reliable, profitable experience is the component many and rewarding business line, said traditional developers lack. Mitchell Bleznak, president of Ann 20110207-NEWS--0012-NAT-CCI-CD_-- 2/4/2011 11:10 AM Page 1
Page 12 CRAIN’S DETROIT BUSINESS February 7, 2011
CRAIN'S LIST: LARGEST SENIOR-LIVING FACILITIES Ranked by number of senior-living units
Facility Total number Address of senior-living Monthly rental rate Average/ Rank Phone; website Top executive units range minimum age Amenities Henry Ford Village Stan Clouse 953 $821 78 All-season pool, fitness and wellness center, on-site Comerica Bank branch, medical center, 15101 Ford Road, Dearborn 48126 executive director 62 convenience store, restaurants and cafe, landscaped grounds, 24-hour security, local 1. (313) 584-1000; www.henryfordvillage.com transportation, computer lab, billiards/game room, music and craft rooms, performing arts venue, multifaith chapel Fox Run Michael McCormick 800 $1,525-$2,628 80 All-season pool, fitness and wellness center, on-site Comerica Bank branch, medical center, 2. 41000 W. 13 Mile Road, Novi 48377 executive director 62 convenience store, restaurant and cafe, landscaped grounds, 24-hour security, computer (248) 668-8600; www.ericksoncommunities.com labs, billiards/game room, music room, craft room, performing arts theater, worship center The Baptist Manor Elizabeth Goleski 546 NA NA On-site doctors office, 24-hour security, independent living, assisted living, and subsidized 3. 30301 W. 13 Mile Road, Farmington Hills 48334 executive director housing (248) 626-6100; www.thebaptistmanor.org Fountains of Franklin Cathy Lubanski 347 $1,600-$3,800 65 One- and two-bedroom residences, kitchenette, housekeeping, quest accommodations, 4. 28301 Franklin Road, Southfield 48034 administrator 52 B scheduled local transportation, fitness and social programs, others (248) 353-2810; www.watermarkcommunities.com Chelsea Retirement Community John Thouhauer 275 NA NA Health promotion and exercise programs; security; transportation service; 24-hour care; 5. 805 W. Middle St., Chelsea 48118 CEO and president social and recreational programs; utilities; assistance with laundry, dressing and bathing; (734) 475-8633; www.umrc.com housekeeping The Village of Redford Thomas Hosinski 268 starts at $995 80 Resident computer labs, social events, performing arts and crafts rooms, libraries, fitness Senior Living Community vice president and 55 centers, private dining rooms, game room, mini-theater, sundry stores, salon/barber shops, 6. 25330 W. Six Mile Road, Redford Township 48240 executive director courtyard with fountain, chapel, walking trails (313) 531-6874; www.pvm.org Lisa Maxwell administrator Glacier Hills Senior Living Community Ray Rabidoux 220 NA NA Fine dining, concierge service, gift shop, beauty salon/barbershop, library, interfaith chapel, 7. 1200 Earhart Road, Ann Arbor 48105 president and CEO 62 wellness center, housekeeping and laundry, and comprehensive life enrichment programs (734) 769-6410; www.glacierhills.org Waltonwood Twelve Oaks Steven Tyshka 219 Varies NA One- and two-bedroom apartment homes, fully equipped kitchens, patio/balcony, bath with 27475 Huron Circle, Novi 48377 director of operations, shower stall cushioned bench and hand rails, 24-hour emergency call system, continental 8. (248) 735-1500; www.SinghSeniorLiving.com Michigan Waltonwood breakfast and dinner reviewed by a dietitian, housekeeping, fitness room, transportation Communities available, others The Village of Oakland Woods Heike Scott 216 NA NA Wellness program, nurse on-site two days a week, senior nutrition site, full-time social Senior Living Community administrator 62 worker, washer/dryer hookup, scheduled weekly shopping trips, mini-bus, wellness center, 9. 420 S. Opdyke Road, Pontiac 48341 individual patio or front porch, private entrances, others (248) 334-4379; pvm.org The Heritage of Southfield Rochelle Rothwell 215 $1,795-$4,025 84 Respite available; short-term stays; speech, physical and occupational therapy 10. 25800 W. 11 Mile Road, Southfield 48034 Reneker 62 (248) 727-2000; www.brookdaleliving.com executive director
This list encompasses senior-living complexes in Livingston, Macomb, Oakland, Washtenaw and Wayne counties that include independent living and licensed and unlicensed assisted living that include customized levels of assistance and services to senior residents. It is not a complete list, but it is the most comprehensive available. B Dependent on individual assessment. LIST RESEARCHED BY ANNE MARKS AND PATRICE BUSHART
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TITLE SPONSOR PREMIER SPONSORS MAJOR SPONSORS SUPPORTING SPONSORS EXCLUSIVE LOCATION SPONSORS MEDIA SPONSOR 20110207-NEWS--0013-NAT-CCI-CD_-- 2/4/2011 10:57 AM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 13
PEOPLE ARCHITECTURE HEALTH CARE Frank Petersmark to chief informa- Margaret Adrain IN THE SPOTLIGHT tion officer advocate, X by 2, Farming- to vice president Kathleen McCann has been named ton Hills, from chief information offi- of marketing, Ar- to the new position of president of bor Hospice, Ann cer and vice president, Amerisure Romulus-based Arbor, from vice Mutual Insurance Co., Farmington vehicle Hills. president of mar- keting, Visiting transporter Nurse Associa- United Road EDUCATION tion of Southeast Services Inc., Michigan, Oak which delivers Debbie Dingell, Park; and Dan and stores president, D2 Layman to direc- vehicles for Strategies LLC, tor of sales, from auto dealers, Dearborn, to Adrain director of auction houses, chairwoman, provider rela- Wayne State Uni- group buyers tions, Hospice of and individuals. versity board of McCann Lansing, Lans- McCann, 51, governors, De- ing. troit. Also, Tina assumes day-to-day operation of the Abbott, secretary- company as CEO Mike Wysocki treasurer, Michi- LAW concentrates on strategic issues. gan AFL-CIO, Joseph Doerr to McCann had been senior vice Dingell Lansing, to vice- member, Dykema president of Detroit-based Soave chair; Rick Nork, Gossett PLLC, Enterprises Inc. She began working vice president for Birmingham, with Soave in 1990 as vice president finance and busi- from associate. and controller of waste operations for ness operations, Layman Steven Bonasso its City Management Corp. treasurer and to name partner, Corbet, Shaw, Essad, McCann, a CPA, is a graduate of CFO of the uni- Tucciarone & Bonasso PLLC, from Eastern Michigan University. She is versity, to board partner. officer; and Julie involved in community organizations and serves on the boards of Miller, secretary REAL ESTATE of the university HomeBancorp Inc., Inland Pipe and senior execu- Jill Fraeyman to marketing director, Rehabilitation LLC, Inland Industrial tive assistant to Village of Rochester Hills, Rochester Services LLC and St. John the president, to Hills, from founder and director, The Providence Health System, others. Abbott board officer. Great Michigan Race, Rochester.
WHO ARE THE TOP CFOS? CFOs are often the unsung heroes of organizations’ senior management teams. These leaders grapple with budget pressure and increased red tape, and contribute to strategic planning in new ways. Crain’s Detroit Business is seeking nominations for its fourth annual CFO awards to give recognition to these financial leaders. Winners and finalists will be recognized at a June event. Nominations must be received at www.crainsdetroit.com/nominate. by Feb. 11. To be eligible, nominees must be CFOs or hold an equivalent job. Judges will select winners based on excellence in financial or other corporate operational management. Nominees will be considered for public companies, private companies and nonprofits. Questions? Contact Jennette Smith, deputy managing editor, at You Deserve: Thoughtful Philanthropic Planning (313) 446-1622 or [email protected]. Find us at PMFA.com.
CALL FOR 40S NOMINATIONS Crain’s Detroit Business is seeking nominations for the 2011 class of UPCOMING BREAKFAST ROUNDTABLE: 40 under 40, which recognizes young February 15 achievers based on factors such as Ready to Retire? Considerations for Passing Down the Family Business financial impact and civic and community leadership. All roundtables will be held from 7:30-8:30 a.m. at 27400 Northwestern Hwy., Southfield, MI 48034. Winners will be profiled in the Oct. 3 roundtables.pmfa.com issue, and Crain’s Visit to register. Seating is limited. will celebrate their achievements at a late October awards event. Nominees must be under age 40 as of Oct. 3, 2011. For sponsorship, call (313) 446-6052. Nominations must be received by April 8. Visit INVESTMENT MANAGEMENT I *TRUST SERVICES www.crainsdetroit.com/nominate *INSURANCE SERVICES I *TAX PLANNING to fill out the online form. ESTATE PLANNING WEALTH MANAGEMENT Questions? Contact Jennette I Smith, deputy managing editor, at BUSINESS TRANSITION I PHILANTHROPIC PLANNING [email protected] or (313) 446- QHHGTGFVJTQWIJCHſNKCVGUQH2/(# 1622. 20110207-NEWS--0014-NAT-CCI-CD_-- 2/4/2011 12:19 PM Page 1
Page 14 CRAIN’S DETROIT BUSINESS February 7, 2011 Campbell Grinder investment ends Glencoe’s yearlong deal drought
BY TOM HENDERSON ter the meeting, Main told Crain’s: at the Bloomfield Hills-based pri- CRAIN’S DETROIT BUSINESS “They’ve stepped it up. I’m not as vate equity firm of BlackEagle Part- disappointed as I was before.” ners LLC, agreed that doing deals in Glencoe Capital Michigan LLC is Glencoe’s most recent deal was 2009-10 required more time and ef- expected to announce today that it an investment in January 2010 in fort. has made an investment for a ma- Saline-based Flatout Inc., a maker “A lot of companies came on the jority share of Campbell Grinder Co. of flat bread and other food items. market last year and they were of Spring Lake, a maker of preci- Glencoe made three invest- marketed by investment bankers as sion grinding machines and filtra- ments in 2009 — in Grand Rapids- the cream of the crop, as the sur- tion systems, ending a one-year based American Education Group, in vivors of the recession. But there deal drought that had brought crit- Madison Heights-based Moosejaw were a lot of situations where if you icism from Greg Main when he Mountaineering and Backcountry scratched the surface a bit, you saw was president and CEO of the Travel Inc. and in Fort Worth, a lot of due diligence issues. Michigan Economic Development Texas-based Novo I, a manager of “We saw a lot of deals that Corp. customer service operations for seemed interesting and we said, Jason Duzan, Glencoe’s manag- businesses, which opened a call ‘Okay, let’s take a better look,’ and ing director, center in Holland in July and now we found a lot of issues. You had to said he plans to employs 175 in the state. be a lot more careful.” use Campbell Ironically, given the subsequent Duzan said that, including the Grinder as a criticism of Glencoe by Main and money spent on five portfolio com- platform compa- others in the local private equity panies, the fund is about 60 per- ny to fold in fu- and venture capital community, cent committed. ture acquisi- Glencoe was honored last March “I think they’ve done a good job tions. by the Association for Corporate in doing leveraged buyouts, con- The deal is Growth and Crain’s as dealmaker of sidering there’s been no ‘L,’ ” said from the the year for 2009, and its invest- Jason Brown, MEDC’s vice presi- $150 million Duzan ment in Moosejaw was a finalist dent of capital markets, referring Michigan Oppor- for best small deal. to the lack of financing available to tunities Fund that Birmingham- Duzan said the criticism ignores help private equity firms get deals MARKET PLACE based Glencoe has managed since the reality of M&A work during done. “I’m very pleased they’ve got 2008 as part of the state’s $335 mil- and after the recession. 60 percent committed, but more is ANNOUNCEMENTS & BUSINESS & lion InvestMichigan program. “You don’t want to deploy capi- better,” he sad. SERVICES INVESTMENTS Terms were not announced, but tal just to deploy capital. You want Duzan said Glencoe has several Duzan said the deal falls into Glen- to deploy it well,” he said. “All of deals in the pipeline, none likely to coe’s parameters of investing be- BUSINESS SERVICES BUSINESSES FOR SALE our investments are doing as well close this quarter. tween $7 million and $20 million in as expected or better.” Tom Henderson: (313) 446-0337, Great Small Business Opportunity - Successful companies with revenue between Mike Monroe, a vice president [email protected] Looking for More Revenue? corp. computer products supplier retiring. Low $15 million and $75 million. Sever- overhead, excellent working hrs. Contact Robert J. Craig, JBP, Inc. 248-851-2770 or cell 248-981-4440. al trade websites estimate Camp- bell Grinder revenue at $20 mil- FOR SALE lion. It employs 78. LANDMARK AUBURN HILLS “It’s a highly engineered busi- Creative Marketing Consultants RESTAURANT ness and a good business that we Christopher Designs www.HartnettAssociates.com Real estate and business available, expect to grow through acquisi- including FF&E and liquor licence. tions and new products,” said Contact Bryan Weiss (248) 750-1700 or Crisscut [email protected] Duzan. “It’s got a big backlog of or- FINANCIAL SERVICES Ludwig & Seeley ders and has a good year ahead.” ADAMS FINANCIAL SERVICES In September, Main, who had Working capital BUSINESS OPPORTUNITIES pointedly criticized Glencoe and No credit scoring -- No minimum time in business other recipients of state funds for Business lines of credit All types of business loans will be considered TAXI BUSINESS FOR SALE IN DETROIT not investing the money fast Please Call 248-643-7418 Well established taxi company with 15 enough, was briefed by Duzan on cabs licensed in Detroit and other cities for sale. Good building and garage. potential deals in the pipeline. Af- LEGAL SERVICES Daily positive cash flow. If interested, please email your contact Antone, Casagrande & Adwers, P.C. information to [email protected]. AV-rated Immigration Law Firm I will contact you to discuss. Dedicated to business, employment and Judge disbands Detroit family immigration matters. Call or email today for information on a custom advertising plan! Farmington Hills, MI 48334 water advisory body Phone (248) 406-4100, www.antone.com [email protected] 313.446.6068 A federal judge has dissolved a group of business executives that was advising the court on its over- sight of the Detroit water system. U.S. District Judge Sean Cox is- REAL ESTATE sued an order Thursday breaking up the Southeast Michigan Consor- INDUSTRIAL PROPERTY INDUSTRIAL PROPERTY tium for Water Quality. District Judge John Feikens AVAILABLE NOW Troy -- Sale or Lease oversaw the Detroit water and sewer department for three 67,700 Sq. Ft. Mfg. or Whse. decades in a pollution case and 4,000 to 100,000 sq. ft. Primary Power • 3 Truckwells formed the consortium in 2003 to Also 10,000 & 25,000 sq. ft. $1.95/Sq. Ft. Lease Rate Possible Seller Financing provide a regional forum for dis- Free Standing Bldgs w/truckwells. cussing the system. Broker/Owner (248) 705-0835 Cox took over the case involving 1 Mile from Metro Airport Detroit’s water system after the Call Us For Personalized now-93-year-old Feikens stepped REA CONSTRUCTION Service: (313) 446-6068 down for health reasons. (734) 946-8730 FAX: (313) 446-1757 Detroit’s water system serves E-MAIL: [email protected] about 4.2 million Southeast Michi- Also Heavy Industrial INTERNET: gan residents, and its management Land Available www.crainsdetroit.com/section/classifieds and contracting system has been See criticized by Oakland County Wa- www.reaconstruction.net Crainsdetroit.com/Section/Classifieds ter Resources Commissioner John for more classified advertisements McCulloch and others. — The Associated Press 20110207-NEWS--0015-NAT-CCI-CD_-- 2/4/2011 6:38 PM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 15 Visteon: Supplier steers its future toward cockpit gadgets ■ From Page 1 high-end models like BMW and for the unit. Co. in 2000 and subsequent inheri- benefits. Mercedez-Benz anymore, he said. “Us, or Visteon, have to have the tance of high labor costs. “Despite its problems, Visteon Visteon’s demonstration cars It’s not about being flexible platforms because that’s Visteon didn’t turn an annual has a strong electronics business are based on subcompact and com- “ what the OEMs or consumers profit until 2009, too late as the and I would generally be bullish pact models — small engine, more fancier or more want,” he said. “That’s why we of- supplier couldn’t avoid bankrupt- about Visteon,” said Cliff Roesler, economical cars — from Europe ten have a laundry list of systems cy in the same year. managing director of Birming- and India, where Visteon already interesting than the together. It’s not about being fanci- It fended off a $1.25 billion ham-based advisory firm Angle Ad- has a large presence. er or more interesting than the takeover bid by JCI during its visors LLC. “JCI was interested for Currently, 80 percent of Vis- competitors; it’s about competitors; it’s about selling bankruptcy struggles and success- reason.” teon’s business comes from Eu- more cars.” fully emerged, despite battles with Dustin Walsh: (313) 446-6042, rope and Asia, where small cars selling more cars. Dressler said he projects contin- bondholders and Ford over retiree [email protected] dominate, with the remaining 20 ” ued growth in the product lines, percent spread among North and Brian Dressler, Continental AG especially in emerging markets. South America. “Electronics is go- JCI also unveiled its new interi- ing to grow like mad in the coming be well-positioned (for growth).” ors and electronics concept at the years,” said Paul Haelterman, A proposed mandate by the U.S. North American International Auto managing director of Novi-based Department of Transportation to Show earlier this month. It un- IHS Automotive Group LLC. “The make rear-view park-assist cam- veiled its “connected center question is whether suppliers can eras standard in U.S. vehicles by stack,” which is a fully integrated effectively integrate their electron- 2014 offers suppliers an opportuni- display containing voice-recogni- ics into their interior components ty to push more electronic sys- tion, smart phone connectivity, In- and make sure they are the chosen tems, Haelterman said. ternet radio and navigation. supplier for the whole system. “That (standard rear-view cam- “Our goal is to create connectivi- Everyone’s vying for turf.” eras) is going to force carmakers to ty solutions for matching the vehi- Visteon’s electronic segment — put a screen in the cockpit, which cle’s lifecycle to the fast-changing instrument panels, infotainment in turn allows suppliers to get rid consumer electronics industry,” systems (digital media, naviga- of standard HVAC, radio controls, Jeff DeBest, global vice president tion, etc. displays), HVAC controls etc.,” he said. “They will be able to and general manager of electronics, and mobile device integration — just download software down the told reporters at the show. generated revenue of $1.6 billion road, so this really becomes an en- JCI’s automotive experience through the first three quarters of abler.” business unit had a strong first 2010, ending Sept. 30 — its last When GM bundled its navigation quarter with revenue increasing quarterly statement before exiting system with the rear-view system by 12 percent to $4.6 billion, com- bankruptcy on Oct. 1 — an in- screen on its full-sized SUVs a few pared with $4.1 billion last year. crease of $232 million from the years ago, adoption of the naviga- The increase is credited to higher first three quarters of 2009. tion systems shot up to 60 percent production and launches of new The electronics segment account- from only five percent, he said. interiors programs with increased ed for 28 percent of Visteon’s rev- Visteon will see strong competi- electronics.In the supplier’s first enue during the first three quar- tion in the electronics market quarter earnings conference call, ters, or approximately $5.7 billion. from suppliers with stronger bal- CEO Stephen Roelle told investors Visteon’s “Growth Market Pro- ance sheets, including Continental that JCI will invest in future tech- ject” car, which was done in part- AG, Robert Bosch GmbH and Mil- nologies and innovations across nership with 3M Automotive, shows waukee-based Johnson Controls Inc., its business sectors, especially in off how the supplier is integrating which has its automotive experi- emerging markets like China and technology for India’s growing ence headquarters in Plymouth. India. middle class. Hanover, Germany-based Conti- The amount of electronics in Annual car sales are projected nental AG’s interiors division, cars has been growing. The dollar to increase up to 5 million vehicles with its infotainment and connec- value of electronics has grown by 2015 and more than 9 million by tivity business unit in Deer Park, from $1354 a car in 1995 to $2,191 a 2020, according to the Society of In- Ill., generated revenue of $5.7 bil- car in 2010, according to data com- dian Automobile Manufacturers. Vis- lion in 2009. The supplier also dis- piled by Boston-based Strategy Ana- teon hopes, like its competitors, to played its new interiors electron- lytics, respectively. capitalize on India’s growth, Yer- ics technologies at CES this year, The automotive electronics mar- don said. including Internet radio, mobile ket is projected to increase to The name of the game is cram- Web applications and multimedia $258 billion in 2017, up from $157 ming as much useful technology displays. billion in 2010, according to Strate- into the cabin. Suppliers are offering up so gy Analytics. Do the “We’ve spent the last four or five many multimedia options be- The focus on technology integra- years moving to global platforms,” cause that’s what the consumers tion is a new chapter in Visteon’s Yerdon said. “As small cars make want, said Brian Dressler, vice troubled track record turning prof- their way into North America, we’ll president of strategy and portfolio its since its spinoff from Ford Motor Right Thing Farmington Hills Ethos Week spa to offer skin, medical treatments March 14 -18 A pair of nurses and a marketing executive have teamed up to start a cob.emich.edu new spa in Farmington Hills. The Ordained Beauty Medical Spa will hold a grand opening this week, with the 1,500-square-foot space to open at 31870 Northwest- ern Highway. in Farmington Hills. Owners are Reneesha Parrish- Nnaji and Diane Henderson Parrish, registered nurses, along with Leisa Traylor, who has done commercial marketing for Chrysler Group LLC and Warner Bros. studios, according to a press release. Ordained Beauty will offer a range of medical treatments in- WJR’s Paul W. Smith volving skin treatment, laser hair removal and Botox. EMU’s David Mielke — Daniel Duggan 20110207-NEWS--0016-NAT-CCI-CD_-- 2/4/2011 5:43 PM Page 1
Page 16 CRAIN’S DETROIT BUSINESS February 7, 2011 THE EXCITEMENT IS BUILDING ... Unemployment: Bonds to pay debt? ■ From Page 3 Michigan has an outstanding loan sess a surcharge on employers. balance. A key question is whether the “So every year, the impact on em- The longer you surcharge equals the taxes that ployers is going to get greater. And “ employers would have paid on the that may be the most compelling wait to do something, federal borrowing, thus enabling reason why the state may want to the state to repay the bonds as try to do something now,” said the higher the rates quickly as possible, or if the as- Chris Dembowski, principal in the sessment is set at a lower rate with Lansing office of law firm Miller, are going to be on bond repayment stretched for a Canfield, Paddock and Stone PLC. longer period, Dembowski said. “The longer you wait to do some- state employers. He said state competitiveness, thing, the higher the rates are going ” in the eyes of business, can become to be on state employers.” Chris Dembowski, a consideration. “If there’s a way Dembowski was part of a group Miller, Canfield, Paddock to try to keep those unemployment that first looked at the UI bonding and Stone PLC costs reasonable, it makes for a idea for the state in 1991, examin- i.e. the length of time for repay- better business climate.” ing issues that included legislation ment and the amount of the tax to Under Texas’ bond sale, repay- that would be needed. He has had a be levied. Over time, businesses ment through employer taxes is role in establishing financing pro- would save.” spread over 10 years. The difference grams for various state authorities Dillon initially mentioned the between the 4.1 percent interest and has participated as bond coun- possibility last Monday during a rate that Texas would have been sel or underwriters’ counsel for fi- presentation on the state’s fiscal charged on the federal loans and the nancings undertaken by the state, condition at a summit sponsored average 2.76 percent interest rate on school districts, municipalities by statewide CEO group Business its bonds will save about $111 mil- and public authorities. Leaders for Michigan. lion over 10 years, according to the Miller Canfield currently has Kelly Chesney, vice president of Texas Workforce Commission. not been retained by anybody in marketing and communications for If Texas had not issued the regard to the possibility of issuing Business Leaders, said the state’s bonds, employers would have bonds, he said. UI debt obligation “is clearly a big faced higher UI taxes to pay princi- As to the climate for issuing the issue that the business community pal and interest on the borrowing. bonds, Dembowski said the fact is concerned about, and we would The federal stimulus law includ- that Texas “was able to do a financ- need to hear more about Treasurer ed a temporary interest waiver for ing was a good indicator for Michi- Dillon’s proposal” and his ideas for states borrowing money, but that gan that there is a market out addressing the problem, as well as waiver expired at the end of 2010 there for this type of security.” other options. and Congress did not pass an ex- But it is interest-rate sensitive The Michigan Chamber of Com- tension. — the higher interest rates climb merce has been looking at the idea of Officials in Michigan and other Call 313-471-BALL (2255) for that type of obligation, the less bonding to eliminate or significant- states continue to seek a waiver of feasible it might be for the state be- ly pay down the state’s debt as part at least the interest. cause of the narrowed spread be- of a comprehensive review it is do- If Michigan does not issue bonds tween the rate on the bonds and ing of the state unemployment sys- and the current solvency tax re- the interest rate being charged on tem and ways to restore solvency. mains in place, it won’t generate the federal borrowing. The cost benefit of bonding “is enough to pay the interest bill. By selling bonds, Michigan still to be determined,” said Wendy The tax is estimated to produce would pay its federal debt and em- Block, the chamber’s director of $45 million by Sept. 30, when the ployers would no longer face their health policy and human resources. $117 million interest payment is current levies to pay principal and “We’re definitely intrigued, and due. interest on the federal borrowing. we definitely think that it’s an idea Stephen Geskey, director of the However, the new debt would be re- worth reviewing,” she said. Michigan Unemployment Insurance paid by a tax on employers, details Block added the UI system “as a Agency, said last month that the of which have not been revealed. whole needs to be reviewed and re- state has an additional $20 million Asked how the plan would lower forms need to happen” to make the it can allocate from an unemploy- employers’ costs, Michigan Depart- system solvent and ensure benefits ment penalty and interest account, ment of Treasury public information are available to unemployed work- but that leaves a $52 million short- officer Terry Stanton said in an e- ers when they need them. fall to make up. mail that “issuance of bonds would Legislation would be needed to Amy Lane: (517) 371-5355, provide for additional flexibility, authorize the bond sale and to as- [email protected] Better Made: Gas holds up plans ■ From Page 3 new equipment.” most affordable option could not manufacture of Better Made’s But Fox said MichCon does not guarantee five psi consistently. potato chips will remain at its loca- pay for the costs incurred when a “Better Made was concerned tion, regardless of where the ex- single company requires changes about the possibility of not seeing pansion goes. In fact, Schena said to a pipeline. guaranteed pressure at five psi, so it can increase its potato chip pro- “Customers creating a demand we never priced that option out,” duction by up to 30 percent with its on our system where we have to Fox said. current equipment. make modifications, those costs Schena said the company plans to “We have no desire to leave, but are borne by the customer in invest $6.2 million in the warehouse I am not going to spend over $6 mil- need,” Fox said. and upgrades to the plant, but he lion to retool a plant and then not The problem, Winkelman said, said the price of adding gas pres- have the gas to run it,” he said. is that MichCon is asking the com- sure is making him reconsider. Since 2005, Better Made has in- pany to pay a minimum of $100,000 “What good is it to buy new ma- creased sales 62 percent. Most of to tap into the high-pressure gas chines to increase production and that is from an increase in private- line beneath Gratiot Avenue. then not be able to turn on our cook- label sales, which account for about Schena said the price includes ers and be able to meet that de- 20 percent of total revenue, which the cost of tearing up and repaving mand?” he asked. “It’s throwing hit $65 million last year. roads, laying the new pipe and con- good money after bad. It’s a better Schena said the lack of interest in necting the pipeline to the plant. business decision to find a new loca- potato sticks by other large-scale Winkelman said the company is tion where the potential to grow is manufacturers like Dallas-based willing to pay for connecting but limitless.” Frito Lay North America Inc. created an not for the street repairs because it Schena says Better Made can opportunity for Better Made. could easily find pressure in other move production and the proposed Winkelman said the potato cities without the added costs. warehouse anywhere as long as stick production accounts for $17 Fox said MichCon provided Bet- there is good transportation. The million worth of business. ter Made with several options to company has a secondary location Nathan Skid: (313) 446-1654, avoid costly street repairs, but the in mind, he said. Schena said the [email protected] 20110207-NEWS--0017-NAT-CCI-CD_-- 2/4/2011 6:49 PM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 17
Officials mull challenge to increase degree-holders www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain BY SHERRI WELCH degree, based on data from the U.S. working locally to increase degree But just a 1 percentage point in- PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] CRAIN’S DETROIT BUSINESS Census Bureau’s American Commu- attainment by local residents crease in the number of degree- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- nity Survey, said Bridget Marquis, through various efforts, said Greg holders in a region would yield a 0460 or [email protected] Metro Detroit could be in the run- program director at CEOs for Cities. Handel, senior director, workforce “huge increase in the amount of DEPUTY MANAGING EDITOR Jennette Smith, ning for a $1 million national mar- “This prize is centered on talent development at the Detroit Region- income in that community, in the (313) 446-1622 or [email protected] SENIOR EDITOR Bob Allen, (313) 446-0344 or keting campaign promoting its fo- development, not talent reten- al Chamber. amount of taxes paid and ultimate- [email protected] cus on a highly educated workforce tion,” she said, acknowledging “It’s fair to say we have been ly, in economic vitality.” COPY DESK CHIEF Gary Piatek, (313) 446-0357 — provided the region accepts a that graduates from local educa- working towards this goal and un- The prize winner will get $1 mil- or [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) challenge to increase the number of tional institutions could choose to derstand the importance of it. Now lion worth of advertising “saying 446-1608 or [email protected] degrees it produces at local colleges, move to other cities. the question is: Do we align with this community is committed to a DATA EDITOR Anne Marks, (313) 446-0418 or universities and community col- CEOs for Cities expects that the competition?” highly educated workforce and is [email protected] leges over the next three years. many of the strategies metro areas The chamber plans to talk with successful at producing it,” Moses WEB DEVELOPER Steve Williams, (313) 446- 6059, [email protected] CEOs for Cities on Jan. 31 opened will use to increase the number of the other groups working toward said. WEB EDITOR Gary Anglebrandt, (313) 446-1621, registration for the national Tal- degrees they produce will center higher degree attainment rates to The Indianapolis-based Lumina [email protected] ent Dividend Prize contest, which on re-enrolling adults with some see if they believe the competition Foundation for Education is con- EDITORIAL SUPPORT Robertta Reiff (313) 446- springs from the group’s so-called college but no degree, Marquis is a good idea, Handel said. tributing another $420,000 to ad- 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- “talent dividend.” said, noting that those people are Interested regions have until minister the competition over the 1687 TIP LINE (313) 446-6766 The Chicago-based nonprofit, a likely to remain in the metro areas May 1 to register for the competi- next three years. REPORTERS network of businesses, nonprofits where they now work. tion, with rankings of the number About 108 metro statistical areas Daniel Duggan: Covers retail, real estate and and mayors dedicated to building The economic benefit of increas- of degrees produced by local col- have populations of 500,000 or hospitality. (313) 446-0414 or [email protected] and sustaining the next generation ing the number of people with de- leges, universities and community more or are the largest city in Jay Greene, senior reporter: Covers health care, insurance and the environment. (313) 446-0325 of great American cities, estimates grees across the country’s 51 largest colleges, per capita, in each region their state, making them eligible or [email protected]. that increasing the number of peo- metros won’t change if they move posted on the competition website for the prize. As of the middle of Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland ple with four-year college degrees in between the metro areas, Marquis at http://ceosforcities.org/talent/ last week, Milwaukee and Mem- and Macomb counties. (313) 446-6796 or the largest 51 metro areas in the said. each September and the winning re- phis had entered. [email protected]. Tom Henderson: Covers banking, finance, U.S. by just 1 percentage point “But I do think cities and metros gion announced in September 2014. Talent is critical to the success of technology and biotechnology. (313) 446-0337 or would yield another $124 billion in need to be concerned about talent Many communities will bend a city, Marquis said. “As opposed to [email protected]. Nancy Kaffer: Covers small business, the city of personal income across the regions. retention, as well.” over backwards to get a new stadi- rewarding places that can attract or Detroit, Wayne County government. (313) 446- The competition measures Representatives from Data Driven um built or to provide tax incen- retain talent, this prize is about re- 0412 or [email protected]. Bill Shea, enterprise editor: Covers media, strictly the number of degrees Detroit, the Detroit Regional Chamber, tives to keep a factory or business, warding places that develop talent.” advertising and marketing, the business of sports, and transportation. (313) 446-1626 or granted in each region and not the Hudson-Webber Foundation, Kresge said William Moses, a member of Flagship and private institutions [email protected]. percentage of population that Foundation, Michigan College Access the advisory board for the contest with high completion rates will Nathan Skid: Multimedia reporter. Also covers the food industry and entertainment. (313) 446-1654, holds a degree. Network, Skillman Foundation and Uni- and program director for educa- likely play less of a role in winning [email protected]. The three years the contest cov- versity of Michigan-Dearborn have tion at the Troy-based Kresge the prize than institutions with low- Sherri Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] ers is not long enough to measure been a part of CEOs for Cities’ tal- Foundation — which is contribut- er completion rates, Marquis said. Dustin Walsh: Covers auto suppliers, steel, higher educational attainment or the per- ent dividend conversation for about ing a $1 million grant to help fund Sherri Welch: (313) 446-1694, education and Livingston and Washtenaw counties. (313) 446-6042 or [email protected] centage of the population holding a the past year and have already been the competition. [email protected] LANSING BUREAU Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) Prentice: Restaurants’ loss was Prentice’s, too 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) ■ From Page 3 393-0997 ADVERTISING SALES Christine Galasso, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, to the Prentice Group, as well as 2009 interview. “We saw a 20 per- president of Chicago-based food in- Cheryl Rothe, Dale Smolinski some portion of $1.5 million owed LIABILITIES AND ASSETS cent dip overnight in gross sales.” dustry research and consulting CLASSIFIED SALES (313)-446-0351 in state and federal taxes. (See ac- In an effort to offset the loss in MARKETING MANAGER Irma Clark Matt Prentice’s Jan. 26 Chapter 7 firm Technomic Inc., said indepen- companying box.) event sales in early 2009, Prentice MULTIMEDIA MANAGER Alan Baker, (313) 446- personal bankruptcy filing shows dent operators of several restau- 0416 or [email protected] Prentice said the biggest single he owes $4.9 million in liabilities began offering steep discounts at rants often are vulnerable to eco- EVENTS MANAGER Nicole LaPointe contributor to the Prentice and $256,555 in assets. the restaurants, including his flag- nomic pressures because they MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford Group’s downfall was the No. VI Some of the liabilities: ship Coach Insignia, but the short don’t have the capital necessary to Chophouse’s unexpected move out term boost did little to negate the CIRCULATION Candice Yopp, Manager. $1 million in federal taxes and withstand a long-term depression MARKETING COORDINATOR Kim Winkler of the Hotel Baronette in Novi in $500,000 in state taxes. long term effect of the recession. in sales. PRODUCTION MANAGER Wendy Kobylarz May 2009 after the hotel’s rebrand- “We were down anywhere from “Multi-concept operators like PRODUCTION SUPERVISOR Larry Williams A $325,325 home mortgage CUSTOMER SERVICE ing to Marriott International Inc. from Saxon Mortgage in Fort Worth, 5 percent to 25 percent in fine din- Prentice Group are in a much At the time of the move, it was Texas. ing,” he said in the 2009 interview. more difficult position,” Tristano MAIN NUMBER: Call (877) 824-9374 or write Prentice’s most profitable restau- “The day of the outrageous holiday [email protected] Unsecured creditors that include said. “Because when you’re in a SUBSCRIPTIONS $59 one year, $98 two years. rant, with annual sales reaching party is over. It’s just not cool any- Out of state, $79 one year, $138 for two years. Chase Bank, $1.3 million; U.S. higher-end position on the inde- Outside U.S.A., add $48 per year to out-of-state as high as $5 million. The restau- Bank Trust, $1.1 million; real more.” pendent side, you have a higher rate for surface mail. Call (313) 446-0450 or rant is now at 27000 Sheraton Dri- A decade ago, he says, sales at (877) 824-9374. estate company Burton Share Inc., cost — rent, quality of food — and SINGLE COPIES: (877) 824-9374. ve, only a quarter-mile away, but $500,000; Lipson Neilson Cole the banquet center in the Bloom- if you’re not driving more cus- REPRINTS: (800) 290-5460, ext. 125; (717) 505- business suffered. Seltzer Garin P.C., $100,000; and field Hills Radisson Kingsley Hotel tomers there, you start going into 9701, ext. 125; or ashley.zander@theygsgroup “That was a million-dollar hit Yatooma & Associates, $11,500. would reach $350,000 in the month .com. debt and trying to make ends TO FIND A DATE A STORY WAS PUBLISHED: for the company and myself,” Prentice’s assets include his of December. In comparison, total meet.” (313) 446-0367 or e-mail [email protected]. Prentice said. “It created an arteri- home, worth $250,000, and sales in 2010 reached $120,000. Prentice said sales are slowly re- $6,550 in personal belongings. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY al hemorrhage that no bandage Dave Long, a retail broker in the bounding at the remaining seven CRAIN COMMUNICATIONS INC. was big enough to cover. Southfield office of CB Richard Ellis, CHAIRMAN Keith E. Crain restaurants and the state of the “It’s going to be a while before timental reasons, but in hindsight said the restaurant portion of the PRESIDENT Rance Crain company is strong. SECRETARY Merrilee Crain we get back to the Baronette Hotel we should have closed (Morels and retail industry has been hit hard TREASURER Mary Kay Crain Dickson, president of Trowbridge levels.” Shiraz) for good at the same time,” by the combination of a smaller of- Executive Vice President/Operations Restaurant Group, said all the William A. Morrow Prentice said sales at the steak- he said. “We knew the restaurant fice-oriented workforce as well as restaurants are profitable and Group Vice President/Technology, house are slowly climbing; they to- wasn’t going to improve because of the economical workers who buy Manufacturing, Circulation Coach Insignia had a strong Janu- Robert C. Adams taled $3 million in 2010, but only af- the shape of real estate in South- lunch and eat at their desks. ary due to the resurgence of major Vice President/Production & Manufacturing ter it lost money in 2009. field, but we hoped we could drive In Southfield, for example, Dave Kamis auto show parties. Chief Information Officer The chain’s troubles, though, banquet sales to get though the re- there was 30.3 million square feet In fact, no employees have been Paul Dalpiaz started earlier. cession.” of office space occupied in the Corporate Circulation/Audience Development Prentice closed Morels and At one time, corporate dining middle of 2006, which dropped to a laid off under Trowbridge. Director Prentice stressed that his per- Kathy Henry Shiraz, both at 30100 Telegraph and events once made up a large low of 28.8 million in the third G.D. Crain Jr. Founder (1885-1973) Road in Bingham Farms, in July percentage of sales for the Prentice quarter of 2010, according to data sonal bankruptcy has nothing to Mrs. G.D. Crain Jr. Chairman (1911-1996) do with the health of Trowbridge. EDITORIAL & BUSINESS OFFICES: 2006, but shortly afterward decided Group, but many of its customers, from Washington, D.C.-based 1155 Gratiot Ave., Detroit MI 48207-2732; (313) to reopen Shiraz, thinking the clo- companies like General Motors Co., CoStar Group. “People hear that word and they 446-6000 get anxious, but a great example of Cable address: TWX 248-221-5122 AUTNEW DET sure of Morels would boost its went from spending lavishly on Factoring the 10 percent of office CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 sales. events to holding company space that most brokers consider how this process can help is Gen- is published weekly, except for a special issue the third week of January, a special issue the fourth But the loss of business popula- potlucks as they dealt with the to be leased out but not occupied, eral Motors,” he said. “The whole week of August, and no issue the third week of idea of reorganization whether December by Crain Communications Inc. at 1155 tion in Southfield, lengthy con- dwindling budgets. Southfield lost close to 4.3 million Gratiot Ave., Detroit MI 48207-2732. Periodicals struction on Telegraph Road cou- Prentice says banquet sales and square feet of occupied space. you use the b-word or not is to get postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to pled with the recession ensured holiday parties plummeted from That means a loss of 17,300 em- things straight to fight for another CRAIN’S DETROIT BUSINESS, Circulation day.” Department, P.O. Box 07925, Detroit, MI 48207- Shiraz’s demise in December, the summer of 2008 through the be- ployees based on the average of 250 9732. GST # 136760444. Printed in U.S.A. along with Tavern on 13 in Beverly ginning of 2010. square feet per employee. Nathan Skid: (313) 446-1654, Entire contents copyright 2011 by Crain Communications Inc. All rights reserved. Hills. “Hundreds of thousands of dol- “That’s a lot of bodies that aren’t [email protected] Reproduction or use of editorial content in any “I decided to reopen Shiraz two lars in holiday parties were lost there,” Long said. Daniel Duggan helped report this manner without permission is strictly prohibited. weeks after closing mainly for sen- due to cancellations,” he said in a Darren Tristano, executive vice story. 20110207-NEWS--0018-NAT-CCI-CD_-- 2/4/2011 6:20 PM Page 1
Page 18 CRAIN’S DETROIT BUSINESS February 7, 2011 Borders: E-commerce, expansion, CD sales among missteps ■ From Page 1 In 1998, Borders launched an e- the company lacked the cash to de- meanwhile, still has 168 mall loca- turned out to be a bust. the broader needs of its core cus- commerce site — three years after velop the program, said Souers. tions under Waldenbooks or Bor- Investors and analysts said An- tomers by selling wine glasses and Amazon.com launched and one “Borders was running out of ders Express. tonini was ignoring the core retail food to accompany cookbooks, for year after Barnes & Noble.com. money and lacked the financial The problem with mall stores, operations of Kmart by spending example. But after just three years of try- flexibility to embark on an e-read- said Wahlstrom, is their size. time with the diversified specialty “It is an interesting potential ing to make a go of online sales, er program,” he said. “A B. Dalton store, at 5,000 or retailers. Under pressure, Antoni- strategy, but we will see if they have Borders gave up. In 2001, it entered Meanwhile, Barnes & Noble 7,000 square feet, only has room to ni spun off OfficeMax, Sports Au- the time and resources to effective- a joint venture with Amazon.com made a move to combine its college sell best-sellers or trinkets,” he thority and Borders as public com- ly make that happen,” he said. to develop a website to be operated book sales operation with its over- said. “The best-sellers are dis- panies in 1994. Builders Square Most analysts say the financial by Amazon with a portion of rev- all book sales business, rather counted heavily, so it becomes a was sold in 1997. problems at Borders don’t signal enue to be shared with Borders. than having two separate busi- loss leader. You don’t want to dri- Under Kmart’s ownership, Bor- an end to the sale of paper books, “That was just a jackass move,” nesses, said Peter Wahlstrom a se- ve traffic to the malls, not to men- ders was in a well-funded growth but are rather an indication the in- said Michael Norris, a senior ana- nior analyst in the investment tion doing it at a negative margin.” mode. It grew to 88 Borders super- dustry is getting smaller. lyst specializing in bookselling for management division of Chicago- In the superstores, Wahlstrom stores and 1,050 Waldenbooks Norris, of Simba, said people in Rockville, M.D.-based Simba Infor- based Morningstar Inc. said, the discounted best-sellers stores by 1995, with 37 more stores the industry hope Borders will get mation. “What that did was add 1 or 2 only represent 3 percent to 5 per- in the pipeline. back to a position of strength. “I can see where it made sense percent growth for the company,” cent of sales, with the higher-mar- After Borders went public in “The publishing industry needs on a spreadsheet, to give up the ex- Wahlstrom said. “So all of a sud- gin books making up more of the 1995, its expansion continued. a lot of retailers out there commit- pense of running a site and just re- den it had cash to invest in the sales. In 1998, Borders created a super- ted to the product,” he said. “The ceive a portion of the profits. But Nook and its online operations.” And also hurting the Borders re- store in London. Stores later entire industry will be weaker the problem is that they created a The early investment by Barnes tail operations was a heavy push opened in Australia, New Zeeland with them gone.” disconnect between their online & Noble puts it in a stronger posi- to sell music, such as CDs, said and other countries. Even as the industry goes more operation and their bricks-and- tion than the Borders strategy, Souers. “It’s a classic retailer mistake to and more digital, there will always mortar operation.” which was not launched until De- “They chased CDs for a long overexpand,” said Souers. “Retail- be a love affair with words printed An ideal retail scenario involves cember 2009, Wahlstrom said. time,” he said. “They invested a lot ers do this often. There are a lot of on paper and bound together, said an online presence connected to For its e-reader program, Bor- of money in that, even as the for- better ways to use their capital.” John King, owner of Detroit-based the physical stores, he said. ders sells readers made by Toron- mat was really turning to electron- The company’s footprint is at John K. King Used & Rare Books. “They weren’t able to make to-based Kobo Inc. that come pre- ic rather than CDs.” the heart of its bankruptcy strate- He said customers who own e- sales online feed the retail stores,” loaded with Borders’ desktop gy, according to reports by readers have come in to buy paper Norris said. application. Overexpansion Bloomberg News Service last week copies of books they are reading It wasn’t until 2008 that Borders about the speculated bankruptcy. digitally. took over its online sales operation Slow to leave the mall Borders went from being an op- Borders plans to close 150 to 200 “People still want to come in, again, by then missing out on eration owned by Tom and Louis stores of the 674 as part of the hold a book, feel it, sniff it,” he said. years of opportunities to make the Borders hasn’t just lagged in the Borders into a large corporation process, the stories said. But watching the downfall of a operation profitable, he said. digital world, said Wahlstrom, it’s by a roundabout way. company that’s part of the “indus- lagged in the bricks-and-mortar In 1992, the company piqued the trial complex” of bookstores has a world as well. interest of Troy-based Kmart Corp. Future of the book sense of poetic justice. Hurt by the economy Early competitors in U.S. malls CEO Joe Antonini at a time when The company has made good “I don’t know where they went And while Borders was busy were Waldenbooks and B. Dalton, he was bent on purchasing so- moves in the past few years with wrong, but there is some justice at building up its own e-commerce owned by Borders and Barnes & called specialty retailers. its brick-and-mortar stores, said work here,” he said. “They took a site, its competitors were busy Noble, respectively. Along with Builders Square Inc., Neil Stern, senior partner with lot of independent stores down working on e-reader strategies. Barnes & Noble embarked on a Sports Authority Inc. and OfficeMax Chicago-based retail strategy firm over the years. This is kind of like At a time when Borders should strategy to shut down its mall Inc., he bought the 21-store Borders McMillanDoolittle LLP. nature taking care of things.” have been working on its e-reader stores much earlier on and closed chain, the latter for $125 million. Borders plans to make its stores Daniel Duggan: (313) 446-0414, program, the economy slowed and its last stores this year. Borders, The specialty experiment more lifestyle-driven, catering to [email protected] Snow: Come snow or whatever, work goes on in ‘virtual office’ ■ From Page 1 anywhere with a VPN (virtual pri- workday for the first time in its “For us, it allows us to really not home and turned on the computer, management support staff is more vate network), Web conferencing history. miss a beat,” said Bob Berg, part- you would have worked for those dependent on working at our office and video conferencing, and it “We had a meeting on Tuesday ner at Detroit-based Berg Muirhead five hours.” building — which is related to our doesn’t affect productivity at all.” and brainstormed about potential and Associates Inc. Kenneth Dal- … interpretation of labor laws, not About 75 percent of the compa- issues that could arise. Because “Between the Internet and cell to, president of due to technology limitations.” ny’s 125 employees based in we’re in the customer service are- phones and all that, we’ve had a the Farmington While regular telecommuting Auburn Hills worked from home na, we wanted to make sure clients couple of conference calls that Hills-based works for some companies, many Wednesday, Wong said, compared had no interruption of service, so were supposed to take place that turnaround and say it’s not likely to become the to roughly 10 percent on a normal we put together an e-mail that went ahead as usual. Five, or par- business con- norm. workday. said: ‘Have your desk phone for- ticularly 10 years ago, we wouldn’t sulting firm Ken- Most of Auburn Hills-based Plex More and more, companies that warded to your cell phone, bring have been able to do that.” neth J. Dalto Asso- Systems Inc.’s 167 employees worked want to attract top talent must of- your laptops home, make sure you Berg recalls the heavy snow- ciates Inc., from home Wednesday at the urg- fer options like telecommuting in have access to the database, and storm of 1978, when he was work- estimates that ing of the company’s CEO, Mark inclement weather, said Mary Cor- that’s how we’ll operate,’ ” she ing for former Gov. Bill Milliken. Nixon with less than Symonds, said Taya Johnston, Plex rado, president and CEO of the said. “Why risk the safety of staff “I had a National Guard vehicle one-third of his 14-member staff Systems’ director of human re- Southfield-based American Society driving two hours to the office?” pick me up at the house so I could working in the office Wednesday, sources. of Employers. Anticipating a slow day, Corrado get to work,” he said. “That night, the team was at about 75 percent of Plex makes operations manage- “You have to said employees were advised to we had an armored personnel car- its normal productivity “because ment software for manufacturers. do this kind of take home projects to work on and rier that had picked him up that so much of our work is communi- Johnston said because employ- stuff these days, stay in contact by phone and e-mail. day and taken him to the capital. cation and presentation and analy- ees are able to use the company’s if you want to be “We had said this is an experi- There was a big diesel armored sis. And that’s a huge increase network remotely, business con- an employer of ment, and how did it work out? personnel carrier coming down over years ago,” he said. “A snow tinued as usual last week. While choice,” she Many people said it was the most my street in Lansing.” day isn’t really an off day any- there are benefits from employee said. “If you ex- productive we have been in a long Berg said his firm offered its em- more.” teams working together in the of- pect your em- time, because they didn’t have the ployees the option of working from The Ann Arbor offices of Brinks fice, they are offered the option of ployees to drive interruptions they had in the of- home and taking a compensation Hofer Gilson and Lione and Rader working from home on other occa- in when we’re fice,” she said. day at a later date, or taking Fishman & Grauer PLLC in Bloom- sions, such as when a child is sick. supposed to get It seems employers’ comfort lev- Wednesday as a paid holiday. field Hills both were closed “In my personal opinion, you all this snow, Corrado el with employees working from All seven employees, he said, Wednesday because of the weath- could do it one day here and there, and you have the technology? You home has increased in recent worked Wednesday. er. But both law firms said more but over time there is something can’t be an employer of choice and years, Corrado said. For Tom Nixon, co-founder of than half their employees were that’s lost by not having people to- expect employees to turn up in “I think this is the first time, en Bingham Farms-based Identity Mar- telecommuting from home or else- gether and collaborating,” Nixon that kind of weather. masse, companies did this,” she keting & Public Relations, it’s a matter where Wednesday. said. “I wouldn’t say it’s the way of “I think employers are using it said, adding that more sophisticat- of common sense to let employees “All of our attorneys work re- the future, but for a day here and to show they are an employee- ed weather prediction technology work from home in inclement motely at home, while traveling there, it makes sense.” friendly organization.” likely played a role in the large weather: “If it took you three hours and, regrettably, while on vaca- Crain’s reporter Chad Halcom And ASE is following the trend, number of metro Detroit compa- to get in and two to get home, to my tion,” said Steve Oberholtzer, man- contributed to this story. Corrado said. Last week, the 109- nies that allowed employees to mind, that’s five hours of lost pro- aging partner of Brinks Hofer’s Nancy Kaffer: (313) 446-0412, year-old organization had a virtual work from home. ductivity,” he said. “If you had been Ann Arbor office. But “our non- [email protected] 20110207-NEWS--0019-NAT-CCI-CD_-- 2/4/2011 6:20 PM Page 1
February 7, 2011 CRAIN’S DETROIT BUSINESS Page 19 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 29-FEB. 4
2 Detroiters tabbed Schostak Brothers & Co. Inc., months of delays have been PulteGroup’s has been the party’s fi- described as moves to for Europe study trip nance director since the maintain liquidity. Give a hug, 2008 election. Tonya Allen, a vice presi- loss widens; Gov. Rick Snyder dent at Detroit’s Skillman OTHER NEWS Foundation, named to the Michigan Gam- ing Control Board for a four- and Brian The Detroit Yacht Club stability seen year term Northville resi- get a hug, Balasia, will be placed on the Nation- dent Robert Anthony, a CEO of De- al Register of Historic Places ulteGroup Inc.’s retired senior partner at troit-based on or around March 1, fourth-quarter loss Pricewaterhouse Coopers LLP. when the U.S. Department of Digerati Inc., P widened, as the are among Interior gives it the official set a record homebuilder’s results were listing, AP reported. 44 fellows dragged down by hefty COMPANY NEWS selected by Oakland County will etroit needs a hug. A the six killed by a gunman charges and a decline in Ally Financial, the for- revive a once-scuttled wire- really big hug. Jan. 8. Allen the Wash- closings and new orders. ington, mer GMAC Financial less Internet access initia- D Thankfully, Inside Solomon, who has a home But the Bloomfield Hills- Services, is pursuing more tive, open a new business D.C.-based Detroit is here to help. in Tucson, will equip stu- based company said Friday new-car business with deal- incubator for alternative- German Mar- The nonprofit organiza- dents from Prince Elemen- that the housing market is ers other than its primary energy companies and add shall Fund of tion, which operates the tary School with cameras to showing signs of stabiliz- clients Chrysler Group LLC neighboring Macomb the United Downtown Welcome Center photograph “My Hope for ing, with encouraging Jan- and General Motors Co. Tar- County into the regional States to and is a fierce Detroit boost- America.” uary buyer traffic and sales geted areas for new busi- economic development visit Eu- er, is attempting to get in A panel will select one trends. ness include used cars, sub- partnership it formed two rope for the Guinness World photo by each child to be PulteGroup lost $165.4 prime and leasing, years ago, County Execu- several Records book for the largest made into greeting cards million or 44 cents per Automotive News reported. tive L. Brooks Patterson an- group hug. that will be sold to raise Balasia weeks this share for the period that Auburn Hills-based nounced at his annual State The hug is set for Satur- money. The cards will be year. The ended Dec. 31, compared Syncreon, an industrial lo- of the County address. day during the annual Mo- sold at Lexusoftucson.com, trip is to expose members to with a loss of $116.9 million gistics and supply chain Detroit-based Metro town Winter Blast. the sponsor of the cost of Europe’s changing and or 31 cents a year earlier. management company, has Services Organization LLC can Detroit huggers will gath- creating them. All proceeds growing nations. The quarter included acquired Compuspar in sue for more than $1.75 mil- er at 7 p.m. in Campus Mar- will go to the Green and re- Balasia departs later with $196 million in land-related Barcelona, Spain. Terms of lion in service payments tius. To beat the record set lated funds. month and plans to study charges and costs related to the deal were undisclosed. from the city of Detroit for by Transylvania two years how countries support the PulteGroup’s restructur- The Crest Automotive work at Cobo Center, even ago, 10,000 people must hug. Loving Detroit from growth of small businesses ing, paying down debt and Group has acquired the 50- though owner Karl Kado had Inside Detroit notes that and the commercialization other financing amend- year-old Bob Thibodeau Ford bribed the facility’s man- the hug is not limited to De- 30,000 feet of new technologies. ments completed in the dealership in Center Line, agement, the Michigan Court troiters; Detroiters-at-heart Allen leaves in June and quarter. The February issue of At- bringing Crest’s portfolio of Appeals has ruled. The are also welcome to join the plans to focus on the “peo- Revenue dropped 32 per- lanta-based Delta Air Lines to four dealerships. Bob Thi- two lawsuits return to mass embrace. ple quotient” of economic cent to $1.19 billion from Inc.’s in-flight magazine, bodeau Jr. said the deal Wayne County for further In advance of the group transformation, such as tal- $1.73 billion but still sur- made sense because his two proceedings. hug, Detroit huggers can Delta Sky, features a 40-page passed Wall Street’s expec- promotional story — with ent development and re- daughters are not interest- A fourth-quarter sur- purchase “I Hug Strangers gional cultural changes, for tation of $1.13 billion. ed in taking on the busi- vey of 75 top executives in the D” buttons at a vari- plenty of local advertising — about metro Detroit, its post-industrial cities like ness. conducted by Business Lead- ety of downtown locations Detroit. Ann Arbor-based Al- ers for Michigan found that including the Inside Detroit economy, history, culture, ON THE MOVE sports and future. tarum Institute has acquired 33 percent think Michi- Downtown Welcome Cen- Andrew Ridgeway, for- Featured were mini-in- Palladian Partners Inc., a gan’s economy will im- ter, Slow’s Bar BQ, the Hard BITS & PIECES mer general manager of Va- terviews with the usual cast Maryland-based science, prove over the next six Rock Café, Vivio’s Food and leo Thermal Systems in of movers and shakers: Dave Edwards Brothers Inc. medical and public health months, compared with 10 Spirits and the Cass Café. North America and a for- Bing, Cynthia Pasky, Dan and Malloy Inc., both of Ann communications company percent who held that be- To learn more, call (313) mer executive at General Gilbert, Peter Karmanos, Edsel Arbor, were among 18 com- that serves government lief in the third quarter. 962-4590, email info@insid- Motors Co., has taken over Ford II, Jeff Daniels and Nancy panies nationwide to re- agencies and private com- The U.S. Small Business edetroit.org or visit as president of the Schlichting. And, of course, ceive a “Best of the Best” panies. Terms of the deal Administration launched a tinyurl.com/IHugStrangers Northville-based power- Mitch Albom. designation in Printing Indus- were not released. new federal contracting InTheD. train engineering services No Phil Cooley Q-and-A, tries of America’s Best Work- Warren-based St. John program targeting small supplier IAV Automotive Engi- however. place in the Americas 2010 Providence Health System businesses owned by neering Inc. He succeeds Photographer to help Among the advertisers: competition. has completed the sale of women. Eligible businesses Utz-Jens Beister, who left the Detroit Medical Center, Gwen Daubenmeyer, an shuttered Riverview Hospital must be certified as small in June 2010. Tucson picture hope Oakland County, MGM associate broker and team and its St. John Senior Com- and woman-owned by SBA Troy-based Champion Birmingham-based Grand Detroit, Ann Arbor, leader at Bloomfield Hills- munity to DRSN Inc., in- standards. Visit Enterprises Holdings LLC has celebrity photojournalist Henry Ford Health System, based Re/Max in the Hills, vestors who plan to develop www.sba.gov/wosb for named John Lawless III, pres- Linda Solomon is launching a Westin Book Cadillac, Mo- has been named Certified a chain of nursing homes more information or to ac- ident of Wixom-based Head- fundraiser to benefit the torCity Hotel Casino, The Hen- Distressed Property Expert and senior centers in cess the instructions, appli- waters Construction Materials memorial fund for Christina- ry Ford, Detroit Regional of the Year by the Austin, Southeast Michigan. The cations and database. Inc., its new CEO, succeed- Taylor Green, the Tucson, Chamber and Strategic Texas-based Distressed Prop- purchase price was not dis- A study by a Rutgers ing William Griffiths, who re- Ariz., third-grader among Staffing Solutions. erty Institute LLC. closed. University associate profes- signed in June. Farmington Hills- sor contradicts Gov. Rick Susan based Jervis B. Webb Co. Snyder’s contention that Martin, pres- would absorb the U.S. sub- public workers’ pay and ident of sidiary of the British air- benefits are out of line with Eastern port baggage-handling sys- the private sector, contend- Michigan tems company Logan ing that state workers in University, Teleflex, under a deal an- Michigan make about BEST FROM THE BLOGS has been nounced by Webb’s parent 7 percent less in pay and READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS named to company, Daifuku Co. Ltd. benefits annually than the St. Terms were not disclosed. their private counterparts, Joseph Mercy Is orchestra industry in trouble? Council not top of crime heap Martin Detroit-based OnStar while local government Health Sys- LLC said that more than workers make about the The fundamental tem board of 1,600 retailers will carry the same, The Associated question in the When it comes to City Council members directors. aftermarket version of its Press reported. orchestra industry is “ whether the economic being indicted for and The system beginning this Gov. Rick Snyder an- troubles are part of a convicted of crimes, Michigan Re- spring. It will retail for $299, nounced that he’ll put out fundamental shift or a Detroit’s not really a publican Par- not including installation his budget plan on Feb. 17. temporary cycle. standout. ty elected and a monthly service plan. He said he wants to base ” Robert As it negotiated for a the budget on the outcomes Schostak of $550 million line of credit, the state wants to achieve. Bloomfield Ann Arbor-based Borders John Conyers, D-Detroit, Schostak Township Group Inc. announced that it ranking member of the Reporter Sherri Begin Welch’s blog Reporter Nancy Kaffer’s blog on the city of Detroit as party chairman. would delay January pay- House Judiciary Committee, about Southeast Michigan nonprofits can be found and small business can be found Schostak, co-chairman and ments to some of its land- said he will seek a 25th con- at www.crainsdetroit.com/welch at www.crainsdetroit.com/kaffer CEO of Livonia-based lords and vendors. The two gressional term. DBpageAD.qxp 2/4/2011 12:11 PM Page 1