DETROIT BUSINESS MAIN 01-01-07 A 1 CDB 12/29/2006 5:00 PM Page 1

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http://www.crainsdetroit.com Vol. 23, No. 1 JANUARY 1 – 7, 2007 $2 a copy; $59 a year

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved needs entrepreneurs, OTHER TOP THIS JUST IN NEWSMAKERS For profiles, see Acquisitions Deal lets limo drivers and he’s put Pages 6-7: in airport terminal A lawsuit filed by 40 serious members of the New Balti- more-based Great Lakes Lim- money into ousine Association against the Wayne County Airport Au- likely over thority was dismissed after getting them Talal Chahine the parties reached a settle- ment that allows autho- rized drivers to meet cus- started. tomers inside the terminal. The suit was filed June 2 That’s why and dismissed Nov. 29 in for Questor U.S. District Court in Detroit. The suit was filed after Dan Gilbert Mary Sue Coleman the authority announced Dan Gilbert, new rules in May that No new fund for buyout firm /Rock Financial Inc. would have not allowed car is Crain’s services to greet passen- BY TOM HENDERSON gers in the luggage claim CRAIN’S DETROIT BUSINESS area inside the McNamara Questor Management Co. L.L.C., the pri- and Smith terminals. Michael Duggan vate-equity firm co-founded by turn- Limo and luxury-sedan 2006 around specialist Jay Alix, has decided drivers argued that the not to raise a third investment fund, rules amounted to unfair which likely means it will wind down its protection for Detroit- affairs and go out of business, according based Checker Sedan, which to co-managing principal Lawrence Ra- took over the airport con- Alix tract from Taylor-based Newsmaker maekers. Metro Cars on July 1, be- Jennifer Granholm Ramaekers said the firm’s board of di- cause customers could find rectors, while considering whether to their vehicles only after an raise money for a new fund, decided last inconvenient trek to the month that the growth of private-equity airport garage. and hedge-fund capital looking for invest- The authority also more of the Year ments nationwide has driven the price of than tripled fees charged deal-making too high. car services for each pick- “There’s a lot of money in the market- BY TOM HENDERSON George Jackson Jr. place chasing deals. The multiples at up, from $3 to $10. AND SHEENA HARRISON See Questor, Page 21 Ramaekers Under terms of the set- CRAIN’S DETROIT BUSINESS tlement, authorized dri- vers of reserved/pre- In , they thank Dan Gilbert for offering up the arranged luxury sedans, $60 million it took in July to keep LeBron James, Michael limousines and other com- Jordan’s heir apparent as the high-flying telegenic super- star of the National Basketball Association, a member of the See This Just In, Page 2 for three more years. Stanford Ovshinsky NAIAS spotlight In Southeast , we EE THE EWSMAKER have far grander things for S N which to thank Gilbert, the OF THE YEAR founder and chairman of Rock shines on design Financial/Quicken Loans Inc. When: Feb. 14. And far many more reasons Where: Detroit Marriott BY JENNETTE SMITH for naming him Crain’s News- Renaissance Center. L. Brooks Patterson CRAIN’S DETROIT BUSINESS maker of the Year for 2006. 2007 Tickets: $40 for Inforum The artistic side of the automotive members; $50 for others. No one is doing more than AUTO SHOW business is getting more canvas at the Reservations: Gilbert to foster entrepreneur- Ⅲ ship in Southeast Michigan, a 2007 North American International Auto Press days: Jan www.inforummichigan.org. 7-9. Industry For more information, call region that has been hit hard Show. Design has long been king at the auto preview: Jan. 10- (313) 578-3230. by plant closings, a string of 11. Charity preview: BREAKING NEWS headline-making bankruptcy show, from the theatrical displays that Jan. 12. Public serve as a backdrop to new models to the FROM ANYWHERE filings by major auto suppliers, and layoffs and buyouts in Sandra Pierce show: Jan. 13-21. the tens of thousands by Ford Motor Co. and General Motors rock star status of some leading auto de- Ⅲ 45 new models signers. Exhibit creators and show orga- As we work to bring you news in Corp. are to be unveiled nizers say this year the emphasis on de- the most convenient formats Gilbert says you can’t solve the problems of the present at the show at possible, we’re going mobile. sign will ratchet up, and there will be Cobo Center. by looking back. You have to figure out a new future. And Catch up on breaking news plenty of inspiration for those who want that, he says, means creating a culture of entrepreneur- For more from any Web-ready phone to harness creative talent. information on the using Crain’s Mobile at ship. Because engineering advances have show, see crainsdetroit.com/mobile. See Gilbert, Page 6 Bob Rossiter See Auto Show, Page 22 www.naias.com.

Second homes up north 2006: A year offer a snow place to go, of hits, misses

NEWSPAPER Page 11 Page 18 DETROIT BUSINESS MAIN 01-01-07 A 2 CDB 12/29/2006 6:25 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 1, 2007

Goodyear Tire & Rubber Co. a-year production plant by June nies and CEO Thomas Itin, al- Township building official THIS JUST IN — Brent Snavely and begin producing the renew- leged he was fired for not comply- Chuck Earl said the building able fuel biodiesel by early July, ing with requests to present fi- would complement the other ■ From Page 1 Tower sells plant to Woodbridge said CEO Terry Nosan. Eventual- nancial information to lenders in large Ashley buildings with ma- ly, the plant is slated to produce a way he believed materially mis- jor tenants in Brownstown. Other mercial vehicles are allowed to Novi-based Tower Automotive 80 million gallons annually. leading or false. tenants in Brownstown include greet and assist arriving cus- Inc. said Friday in a document Nosan added he believes there Ajay said that it has filed an ap- Ford Motor Co., Transfreight L.L.C. tomers in the specified baggage filed with the U.S. Securities and is room for expansion to produce peal with the state court and an- and Bekins Distribution. claim areas of all terminals. So- Exchange Commission that it sold a other renewable fuels in the fu- nounced that Pro Golf President —Daniel Voros, Jennette Smith liciting arriving passengers is suspension assembly plant in ture. and COO Brian Donnelly resigned. prohibited. Delta Township for $20 million on BioFuels Industries principals — Bowdeya Tweh Meridian leaves Chapter 11 Further, all vehicle-for-hire Dec. 22. are Nosan, CFO Michael drivers must park in the desig- The plant was purchased by Horowitz; general counsel Allen Park-based Meridian Auto- nated ground transportation ar- Mississauga, Ontario-based Bradley Schram, a principal of Ashley Capital to build motive Systems Inc. officially eas and obtain specific creden- Woodbridge Group. Woodbridge, in Bloomfield Hills law firm Hertz $8 million building emerged from Chapter 11 bank- tials from the airport’s ground a statement on its Web site, said Schram & Saretsky P.C.; and COO ruptcy on Friday. transportation office prior to en- the Lansing area plant assembles Timothy VerVaecke. Ashley Capital plans to build an The automotive plastics suppli- tering the terminals. front horizontal modules, rear — Anjali Fluker additional $8 million, 400,000- er filed for Chapter 11 bankrupt- — Andrew Dietderich suspension modules and power square-foot speculative building cy in April 2005 in U.S. Bankruptcy trains for General Motors Corp. at its Brownstown Business Cen- Court in , citing price in- Auto group plans Production is scheduled to re- Ajay, Pro Golf file Chapter 11 ter in Brownstown Township. creases for steel and plastic, pric- membership drive sume this month. An October $1.3 million jury Ken Bowen, Ashley vice presi- ing pressures from its customers About 250 employees work at award to former Ajay Sports Inc. dent, said Ashley’s plan would be and the declining market share of A new automotive industry as- the plant, said Joe Kirik, senior CFO Ronald Silberstein for for a building No. 6 as part of the its customers. sociation dedicated to the devel- vice president of public-relations wrongful termination forced the company’s 10-building develop- The company’s plan of reorgani- opment and retention of the auto- firm Quell Group and spokesman Farmington Hills-based company ment in Brownstown. Construc- zation was approved Dec. 6. In a motive industry in Michigan for Tower. to file for Chapter 11 protection in tion on the project would start in statement Friday, the company plans to announce a membership Novi-based Tower filed for a Detroit bankruptcy court the spring and finish in the fall. said it has secured $167 million in drive this Thursday at Chapter 11 bankruptcy in New Wednesday, according to a com- The contractor is Novi-based Oliv- exit financing from Deutsche Bank. NextEnergy’s offices in Detroit. York in February, 2005. Tower re- pany statement. er/Hatcher Construction. — Brent Snavely Originally incorporated as the ceived court approval Aug. 10 to Ajay owns a majority share of Michigan Automotive Industry Asso- sell the plant. the holding company Pro Golf In- ciation Inc., the association has — Brent Snavely ternational Inc., which owns the CORRECTIONS adopted the name MichAuto. store franchisor Pro Golf of Ameri- Ⅲ A story on Page 11 of the Dec. 18 issue should have said that Matt Membership is open to any BioFuels breaks ground for plant ca Inc. and has a majority stake Cullen, general manager of economic development and enterprise business, organization or college West Bloomfield Township- in Progolf.com Inc. Pro Golf sells services for General Motors Corp., is a member of Mosaic Youth The- that has a significant interest or based BioFuels Industries Group golf equipment and sporting atre’s board of directors rather than its board chair. Robert Riney, presence in Michigan’s automo- L.L.C. broke ground last week on goods in the U.S., Canada, Puerto senior vice president and COO of Henry Ford Health System is tive industry. Founding mem- its new $20 million biofuels plant Rico and Ireland. chairman of Mosaic’s board. bers of MichAuto are Warner Nor- in Adrian. Silberstein’s suit, filed in 2004 Ⅲ A rumbling on Page 22 in the Dec. 18 issue should have said that cross & Judd, R.L. Polk & Co., BioFuels Industries is expected in Oakland County Circuit Court the advertising agency JWT Detroit is based in Detroit. Deloitte & Touche USA L.L.P. and to complete the 20 million-gallon- against Ajay, the Pro Golf compa-

women&minority vendors are invıted to learn about our new store project at Partridge Creek Fashion Park

WEDNESDAY, JANUARY 24, 2007, 9:00 A.M.–1:00 P.M., THE HYATT REGENCY DEARBORN STEARNS KNIGHT ROOM, 600 TOWN CENTER DRIVE, DEARBORN, MICHIGAN TO R.S.V.P. OR FOR SPECIAL ACCOMMODATIONS INQUIRIES, CALL 206.373.4383 We’re seeking: • Certified women and minority subcontractors and suppliers in construction trades for the interior and exterior portions of the project. • Contractors or vendors who provide construction supplies or materials. (Architectural and design service opportunities are not available.) To be considered, your company must: • Be licensed and bondable. • Demonstrate private sector experience. Nordstrom construction policy prohibits joint ventures or construction managers. To answer questions on the procedures used to select vendors for the bidding process or for more information, contact Barbara Valdez, Supplier Diversity Program Director, Nordstrom, Inc., Seattle, , 206.373.4382 or Christine Young, Supplier Diversity Program Manager, Nordstrom, Inc., Seattle, Washington, 206.373.4383.

Nordstrom, Inc. is one of the nation’s leading fashion specialty retailers, with 157 U.S. stores located in 27 states. Founded in 1901 as a shoe store in Seattle, today the company operates 99 Nordstrom stores, 50 Nordstrom Racks, five Façonnable boutiques, one free-standing shoe store, and two clearance stores. Additionally, Nordstrom serves customers through its online presence at nordstrom.com and through its catalogs. Nordstrom, Inc. is publicly traded on the NYSE under the symbol JWN. Nordstrom is an Equal Opportunity Employer committed to providing a diverse environment. DETROIT BUSINESS MAIN 01-01-07 A 3 CDB 12/29/2006 5:01 PM Page 1

January 1, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Health care costs set to jump INDEX

Michael Nixon, president and Bigger increase expected in ’07, survey says COO of Allied Group, said the aver- age increase his company is quoting BY ANDREW DIETDERICH Michigan. up at night will be, ‘If cost growth in is in the 9 percent-to-12 percent CRAIN’S DETROIT BUSINESS The amount spent on active em- health benefits has stopped slowing, range. However, he warned that the ployees is expected to in- will it now start to acceler- figures include some cases where Health care costs in Southeast crease from an average ate?’” said Jeff Nielson, prin- rates have gone down and some Joint savings: Michigan are expected to rise be- where rates increased as much as 30 Partnership saves of $7,976 per employee to 6.1% cipal with Mercer Health & tween 5.5 percent and 12 percent in percent. Detroit $5.2M in about $8,375 this year, What employers Benefits Detroit office. building expenses. 2007 compared with 3.5 percent last taking the Southfield-based Plante & Moran according to the report. Southeast Michigan health Page 5. year. Mercer survey P.L.L.C. released results of a survey That’s according to the Mercer The expected increase expect health care costs are expected to in- Dec. 19 in which 100 executives from Year-end stocks: Local marks the end of a three- care costs per crease slightly less than the companies stay even with Health & Benefits’ 2006 National Sur- the Midwest took part. In the survey, growth in S&P 500. vey of Employer-sponsored Health year period in which em- employee to overall increases in the rest of 82.4 percent said they felt that the Page 4. Plans and an executive in the Royal ployers succeeded in re- increase for the U.S. rising cost of health care is a weak- 2007. These organizations appear in this Oak office of Allied Group Insurance ducing the rate of growth According to the Mercer ness to doing business in the Great week’s Crain’s Detroit Business: Services Inc. in health benefit costs as survey, employers expect the Lakes region. The survey included responses cost-shifting to employees slows. total cost per employee for 2007 to in- ACS Health Care ...... 11 from 48 employers in Southeast “The question keeping employers crease 6.1 percent. See Health care, Page 22 Allied Digital Technologies Inc. . . . 13 Allied Film & Video ...... 13 Allied Group Insurance ...... 3 Bizdom U...... 6 Camelot Ventures L.L.C...... 6 Capital Grille ...... 14 Charter One ...... 7 ■ Citizens Bank ...... 13 UAW negotiations Ford library, Cobo Center ...... 20 College for Creative Studies ...... 22 Collins & Aikman Corp...... 20 ■ Compuware Corp...... 6 Federal funding Crust Pizza + Wine Bar ...... 14 DEGC ...... 7 museum Delphi Corp...... 20 ■ Casino construction Detroit Institute of Arts ...... 13 Detroit Medical Center ...... 6 Detroit Red Wings ...... 20 ■ Developers Diversified Realty . . . . 14 Downtown development Dickinson Wright ...... 20 prepares for Domino’s Pizza Inc...... 6 Energy Conversion Devices Inc. . . . . 7 ■ Auto industry changes ePrize L.L.C...... 6 Exhibit Enterprises ...... 22 Exhibit Works ...... 22 L.L.C...... 6 new interest Federal-Mogul Corp...... 20 Ford Motor Co...... 1 BY BILL SHEA Ford Presidential Library ...... 3 CRAIN’S DETROIT BUSINESS Galeana Automotive ...... 22 Gallagher Benefit Services ...... 22 President Ford’s death on Dec. 26 has kept Elaine General Dynamics ...... 20 Didier busy and will keep her occupied for some time. General Motors Corp...... 1, 20 George P. Johnson ...... 22 The director of the Gerald R. Ford Presidential Library Global Electric Motorcars L.L.C. . . . 12 and Museum since January 2005, Didier had been Google Inc...... 6 preparing for months for the death of the 93-year-old Greektown Casino ...... 20 former president. She’d overseen significant content H.B. Stubbs ...... 22 upgrades to the library and museum Web sites and Harper University Hospital ...... 6 Hines Limited Partnership ...... 5 had worked with the national me- Hines-Porcher ...... 5 dia as they made their own cover- Inc...... 6 age preparations in advance. Johnson Controls ...... 22 “It’s like the death of a loved one; La Shish Restaurants Inc...... 6 Lear Corp...... 7 you’re never completely ready,” MEDC ...... 11 she said. “We’re well-prepared. Will Menlo Innovations ...... 22 there be curveballs? Sure.” Mercer Health & Benefits ...... 3 Ford’s death is expected to trans- Metaldyne Corp...... 20 MGM Grand Detroit ...... 20 late into donations to the library’s Michigan State University . . . . . 6, 20 and museum’s collections, more MotorCity Casino ...... 20 visitors and increased scholarship NAIAS ...... 1 Didier into his time in the White House, Nemeth Burwell ...... 11 said Didier, the former dean of the Kresge Library at Oakland University ...... 3 Oakwood Healthcare Inc...... 6 Oakland University. She predicts an “awakening of in 2007 One Equity Partners ...... 12 awareness” into Ford’s presidency. Porcher Real Estate ...... 5 “We will be growing as a result of this,” she said. Questor Management Co...... 1 BY BRENT SNAVELY “There will be some additional materials (donated).” Quicken Loans/Rock Financial . . . 20 CRAIN’S DETROIT BUSINESS Rains Group ...... 22 She expects now to receive more of the president’s Right Management Consultants . . . 12 The future of the automotive industry in personal items from the family, papers from the Rock Financial/Quicken Loans . . . . 1 Southeast Michigan will be hanging in the White House and transcripts and recordings of con- Rosie O’Grady’s ...... 14 TEAM Inc...... 22 1. Stakes balance later this year when the lead negoti- versations between Ford and contemporary historic figures. United Auto Workers ...... 3, 20 ating teams of the United Auto Workers and the University of Michigan ...... 3, 6, 20 domestic automakers sit down to hammer out “We’ve had some out-of-the-blue offerings,” she Wayne State University ...... 6, 20 new four-year labor agreements. said, noting the recent donation of the actual final BANKRUPTCIES ...... 22 high for region as Every four years the UAW and the Big teletype message Ford sent to the U.S. commander BRIEFLY ...... 17 Three renegotiate their master labor con- overseeing the evacuation of the U.S. embassy in Saigon in April 1975. BUSINESS DIARY ...... 17 tracts. The current agreements expire in Sep- CLASSIFIED ADS...... 16 Currently, the library has 23 million pages of docu- tember and, industry observers say, the KEITH CRAIN ...... 8 ments, 325,000 photos and 6,500 hours of audio and Big Three, UAW stakes are higher than ever due to the finan- LETTERS ...... 8 cial distress of the North American automo- video material related to Ford. MARY KRAMER...... 9 tive industry combined with the declining Interest in Ford from academics, those who knew OPINION ...... 8 ranks of union membership. him and the public had been growing as his health PEOPLE ...... 10 sit down to talk The automakers need a contract that helps continued to fail, she said, noting that one new biogra- RUMBLINGS...... 23 WEEK IN REVIEW ...... 23 them operate profitably while their market phy is near completion and another is in the works share continues to decline and the United from veteran journalist Bob Woodward. Auto Workers is seeking to preserve jobs Didier, a Plymouth resident, held a variety of ad- CALENDAR ministrative positions at the University of Michigan For a list of current with good wages and benefits. events, visit www.crainsdetroit.com. See Talks, Page 20 See Museum, Page 22 DETROIT BUSINESS MAIN 01-01-07 A 4 CDB 12/29/2006 5:35 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 1, 2007 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES STOCK BRIEFS State stocks track S&P 500 in Firm offers $4.7B for Delphi C&A plans to sell assets, close Highland Capital Management Southfield-based automotive- L.P., Delphi Corp.’s second-largest interior supplier Collins & Aikman shareholder, has offered $4.7 bil- Corp. on Dec. 22 filed a revised 2006; health care drives growth lion to recapitalize the auto parts plan in U.S. Bankruptcy Court in giant, The re- Detroit that reflects a decision to ported Dec. 21. close and sell its assets rather BY SHEENA HARRISON That compares with an earlier than emerge from Chapter 11 as a CRAIN’S DETROIT BUSINESS offer of as much as $3.4 billion stand-alone company. 2007 STOCK RESULTS made by an investment group led On Nov. 14, the company an- While the state remains in an For complete results, see www.crainsdetroit.com. by Cerberus Capital Management nounced that it was for sale. Be- economic slump compared to the L.P. and Appaloosa Management L.P. fore that, it was pursuing a “dual- 12/29/06 12/30/05 PERCENT rest of the country, Michigan pub- CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE Delphi is expected to exit Chap- track” reorganization plan that lic companies managed to perform ter 11 protection sometime in 2007 considered both a sale and emer- on par with Standard & Poor’s 500 1. United American Healthcare Corp. $8.38 $2.40 249.17 as a leaner, mostly overseas com- gence as a stand-alone company. Index in 2006. 2. Credit Acceptance Corp. 33.33 16.10 107.02 pany with an emphasis on the Collins & Aikman filed for bank- Stock analysts say the results 3. Detrex Corp. 8.65 4.55 90.11 growing automotive-electronics ruptcy in May 2005. show that Michigan could be on 4. Meadowbrook Insurance Group 9.89 5.84 69.35 sector. Secured creditors and those hold- track to perform “reasonably 5. Covansys Corp. 22.95 13.61 68.63 — Crain News Service ing administrative and priority well” in 2007. CDB’S LOW PERFORMERS 12/29/06 12/30/05 PERCENT claims will get back all the money “If you can assume the stock CLOSE CLOSE CHANGE they are owed, Bloomberg News re- Tower to get $250M infusion market is a reasonable gauge for 1. ProQuest Co. $10.45 $27.91 -62.56 ported, while shareholders will get economic activity, you can assume Bankrupt Novi-based auto sup- 2. Valassis Communications Inc. 14.50 29.07 -50.12 nothing, according to the plan. It re- in 2007 we may see marginal im- plier Tower Automotive Inc. said 3. Handleman Co. 6.77 12.42 -45.49 mains unclear if other creditors, provement in Michigan business Dec. 20 that three of its signifi- such as suppliers and unsecured 4. Champion Enterprises Inc. 9.36 13.62 -31.28 conditions,” said David Sowerby, cant bondholders will underwrite bondholders, will get anything. 5. North Pointe Holdings Corp. 10.60 15.37 -31.03 portfolio manager and chief equity a $250 million equity rights offer- Collins & Aikman has 45 North Source: Bloomberg News. From a list of publicly owned companies with headquarters analyst for Bloomfield Hills-based in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trad- ing that will be the backbone of American plants and 12,000 em- Loomis Sayles & Co. ing at less than $5 are not included. its reorganization plan. ployees. The average stock price for Tower said it has filed a com- — Bill Shea mitment letter and restructuring Michigan public companies in- is growing,” Johnson said. nies, with a 45.25 percent decline in term sheet with the U.S. Bankrupt- HORT TAKES creased by about 14.5 percent in Not surprisingly, some of the stock price in the last year. Handle- cy Court for the Southern District of S 2006, compared with 14.1 percent state’s biggest losers came from the man said it was hurt by startup . Ⅲ DTE Energy Co. (NYSE: DTE) for the S&P 500. still-slumping automotive industry. costs from a new greeting-card busi- The three bondholders are has proposed to state regulators a Among the Southeast Michigan Dura Automotive Systems Inc., which ness in the U.K. and a continued in- Strategic Value Partners L.L.C., renewable-energy program in companies helping to drive the filed for bankruptcy in October, saw dustrywide slump in music sales. Wayzata Investment Partners L.L.C., which customers can add electric- growth was United American Health- its stock price drop by nearly 78 per- Still, Sowerby said businesses in and Stark Investments. Collective- ity generated from alternative care Corp. (Nasdaq: UAHC), a De- cent to 50 cents on Dec. 28, down from the state have performed rather well ly, they own in excess of $225 mil- sources to their supply of power. troit-based health maintenance or- $2.24 at the end of last year. despite the sagging economy, and he lion of unsecured claims against Ⅲ David Harbert has been ganization and management Also near the bottom of the list expects the average Michigan com- Tower. named interim vice president and company. United American stock was Livonia-based coupon-maker pany could see a 10 percent to 12 per- The deal must be approved by CFO of Rochester Hills-based Dura closed at $8.53 on Dec. 28, com- Valassis Communications Corp., whose cent gain in earnings during 2007. the bankruptcy court and meet Automotive Systems Inc. (Nasdaq: pared with $2.40 at the end of 2005. stock price fell by 50 percent after it He said he’s particularly encour- conditions and deadlines in the DRRA), replacing Keith Marchi- The company is best known in went to court to back out of a merg- aged by price growth in the last restructuring plan. ando, who will remain with the Michigan for having operated Omni- er agreement with direct-mail giant quarter of 2006 — when Michigan The senior secured debt would company through February. Har- Care Health Plan, whose assets were Advo Inc. of Windsor, Conn. The stocks grew by about 9 percent. be refinanced and paid in full and bert is a partner with Tatum CFO sold out of state receivership to companies dropped their lawsuits “I’d rather see momentum build- all allowed administrative and pri- Partners L.L.P., an Atlanta-based Coventry Health of Michigan in Octo- after they worked out a new $1.2 bil- ing into the following year rather ority claims would be paid in full, consulting firm that specializes in ber 2004. United American said last lion merger deal in December. than staggering into the next according to a statement issued by corporate turnarounds and pro- month it had raised $6.5 million Troy-based music and entertain- year,” Sowerby said. Tower. Unsecured creditors as a vides interim CFOs to companies. through the sale of 1 million newly ment distributor Handleman Co. also Sheena Harrison: (313) 446-0325, group would be entitled to certain Ⅲ Roger Cregg, executive vice issued shares of its common stock. fell into the bottom 10 public compa- [email protected] cash and warrants, with eligible president and CFO of Bloomfield United American said in Octo- unsecured creditors being able to Hills-based Pulte Homes Inc., and ber that its sole subsidiary was participate in the rights offering. T. Kevin DeNicola, 52, senior vice certified to manage a Medicare Ad- — Bill Shea president and CFO of Houston- vantage contract in . STREET TALK based Lyondell Chemical Co. have That contract that has generated THIS WEEK’S STOCK TOTALS: 52 GAINERS, 24 LOSERS, 4 UNCHANGED Advo, Valassis reach deal been named to the board of De- optimism about United Ameri- Comerica Inc. troit-based (NYSE: can’s prospects, said Jeff Lambert 12/29 12/21 PERCENT Livonia-based Valassis Commu- CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE CMA) They replace Roger Frid- president of Grand Rapids-based nications Inc., the nation’s No. 2 holm, president of St. Clair Group, investor-relations firm Lambert, 1. Origen Financial Inc. $6.85 $5.56 23.20 coupon company, has worked out a private investment company, Edwards & Associates Inc. 2. Caraco Pharmaceutical 14.00 12.78 9.55 a new, $1.2 billion merger agree- and Gail Warden, president emer- “UAHC is benefiting, from a 3. Community Central Bank Corp. 12.00 11.15 7.62 ment with direct-mail giant Advo itus of Henry Ford Health System. stock-price perspective, from people 4. ProQuest Co. 10.45 9.75 7.18 Inc. of Windsor, Conn. Ⅲ Keshav Murugesh was named looking into the future of what they 5. Veri-Tek International Corp. 5.42 5.08 6.69 Valassis will buy all of Advo’s president of Syntel Inc. (Nasdaq: can achieve,” said Lambert, whose 6. North Pointe Holdings Corp. 10.60 10.09 5.06 outstanding stock at $33 a share SYNT) in Troy, and will remain company represents United Ameri- 7. Credit Acceptance Corp. 33.33 31.80 4.81 and assume approximately $125 COO. He replaces Bharat Desai, can. “It’s both ‘What have you done million in Advo debt, which is ex- who remains chairman and CEO. 8. Asset Acceptance Capital Corp. 16.82 16.07 4.67 pected to be refinanced. The origi- Ⅲ Southfield-based First Mer- for me lately?’ and ‘What can you 9. TechTeam Global Inc. 11.25 10.75 4.65 nal merger deal was for $1.3 bil- cury Financial Corp. (NYSE: FMR), achieve for me in the future?’ ” 10. Visteon Corp. 8.48 8.14 4.18 lion, with Valassis (NYSE: VCI) which went public in October, Other health care firms con- 12/29 12/21 PERCENT CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE paying $37 a share of Advo (NYSE: was added Dec. 15 to the Russell tributed to overall stock price AD) stock. 2000, Russell 3000 and Russell Mi- growth, including Wixom-based 1. Valassis Communications Inc. $14.50 $14.66 -1.09 The companies were in crocap indexes. Rockwell Medical Technologies Inc., 2. Dearborn Bancorp Inc. 19.00 19.28 -1.45 Delaware’s Chancery Court, where Ⅲ Flint-based Citizens Banking which increased by 58.8 percent, 3. Oxford Bank Corp. 48.15 48.90 -1.53 Valassis was trying to back out of Corp. (Nasdaq: CBCF) announced and Detroit-based Caraco Pharma- 4. Compuware Corp. 8.33 8.46 -1.54 the merger it announced in Au- the sale Dec. 18 of seven of its ceutical Laboratories Ltd., which 5. Citizens Banking Corp. 26.50 27.04 -2.00 gust because it accused Advo of de- branches in Flint, Flushing and grew by 48.8 percent. 6. Republic Bancorp Inc. 13.46 13.77 -2.25 ceiving it over its finances. Advo Davison to -based First Place Dana Johnson, senior vice presi- 7. Amerigon Inc. 9.66 9.99 -3.30 countersued to enforce the deal. Financial Corp. (Nasdaq: FPFC). dent and chief economist at Comeri- 8. Federal Screw Works 13.00 13.50 -3.70 The new deal, expected to close First Place gets the branches, ca Bank, said those companies like- 9. Energy Conversion Devices Inc. 33.98 35.73 -4.90 in the first quarter of 2007, is sole- about $155 million to $160 million ly have benefited from health care 10. United American Healthcare Corp. 8.38 9.02 -7.10 ly contingent on Advo sharehold- in cash and about $30 million in becoming one of Michigan’s Source: Bloomberg News. From a list of publicly owned companies with headquarters ers approving the deal. No date loans, in exchange for assuming strongest industries. in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading has been set for that vote. about $210 million in liabilities in “That is a sector that’s resilient, at less than $5 are not included. — Bill Shea the form of deposits. not highly cyclical, where demand DETROIT BUSINESS MAIN 01-01-07 A 5 CDB 12/29/2006 4:30 PM Page 1

January 1, 2007 CRAIN’S DETROIT BUSINESS Page 5 Partnership saves Detroit $5.2M in office expenses

BY ROBERT ANKENY Limited Partnership Inc. and Porcher well as about 30 courtrooms and city supervisors.” He credits engi- ceived a U.S. Environmental Protection CRAIN’S DETROIT BUSINESS Real Estate Management Inc., started headquarters for the Wayne County neering manager Mike Pietryka Agency Energy Star for efficiency. Nov. 1, 2005. The joint venture gets Circuit Court. with some of the work that has led Kennedy also rebid major con- The Detroit-Wayne County Joint an annual fee of $300,000. The building authority, which to improvements and savings. tracts in seven areas, including se- Building Authority, contracting with The challenge, said Michael uses city employees for janitorial “Our first step was to take meth- curity. He replaced private guards a private company joint venture, Kennedy, joint venture property and engineering work, was hit by ods used at other Hines-managed with Wayne County sheriff’s has cut expenses to run the 50- manager for what many still call layoffs, with 110 positions cut to 50 properties and apply them to deputies to handle entrance year-old Coleman Young Municipal the City-County Building, was to in the past three years, said Grego- staffing at the municipal center,” he screens at the metal detector sta- Center from $15 million to an esti- take an aging building with limit- ry McDuffee, the building authori- said. A firm schedule of task fre- tions. “They’re more official and mated $9.8 million annually. ed staff, make it cleaner, safer and ty’s on-site general manager. quency set chores such as office more efficient,” he said. One major savings that came in better-run while saving money. “Hines-Porcher successfully in- trash cleanup, repainting and such New contracts for landscaping, the first year of Hines-Porcher joint Both Wayne County and the city tegrated with the government to be done daily, weekly or monthly. snow removal, the auditorium pub- venture management was an esti- of Detroit have tight budgets and structure, and has shown us how A big factor in the utilities sav- lic address system and elevator mated $1.5 million drop in utility need all the savings they can get. to use skilled tradespeople proper- ings came with the decision to heat maintenance also improved service costs. The building houses most major ly,” McDuffee said. and cool the building only during while cutting costs, he said. The authority’s contract with the city departments, including offices Kennedy said the management operating hours, instead of 24/7, Robert Ankeny: (313) 446-0404, joint venture, composed of Hines for the mayor and City Council, as change was “consultative with Kennedy said. The building has re- [email protected]

Dearborn mayoral vote Feb. 27 BY ROBERT ANKENY CRAIN’S DETROIT BUSINESS

Dearborn voters face a Feb. 27 winner-take-all mayoral election with 16 hopefuls already circulat- ing petitions to become candi- dates. At least three “name” candi- dates are already preparing to be in the race for the $131,133-a-year job. City Council President John (Jack) O’Reilly, 58, is serving a fifth consecutive term on council and has been mayor pro tem since Guido’s death. An attorney, O’Reil- ly is executive director of the Southeast Michigan Community Al- liance. His father John O’Reilly Sr. was mayor of Dearborn from 1978 to 1985. Abed Hammoud, 41 this month, is an assistant Wayne County prosecutor. He is a Lebanese im- migrant who ran unsuccessfully against Guido in November 2001, the last time the late mayor was challenged. The third prominent candidate is Maureen Keane-Doran, wife of re- A LAW FIRM UNLIKE ANY OTHER tired Ford Motor Land Development Corp. chief Wayne Doran. Keane- Doran is a former city official who headed the Service Department in the Orville Hubbard administra- tion and was a confidante of Hub- bard. She ran unsuccessfully for mayor against O’Reilly Sr. Among the other 13 potential candidates circulating petitions so far are Lauren Scarpace, 28, a com- mercial real estate adviser, and Tarik Salmaci, 34, former profes- sional boxer who is now a real es- tate salesman. The special election is made nec- Uncommon Name. Uncommon Approach. Uncommon Value.™ essary by the death Dec. 5 of veter- an Mayor Michael Guido, who had served nearly 21 years. The top At Dykema, we’re different from the rest. We've been doing things vote-getter in the Feb. 27 election will serve the balance of Guido’s unlike any other law firm for more than a century by helping clients unexpired term, with the next elec- achieve strategic business results. Dykema — uncommon value. tion coming in 2009. There is a Jan. 9 deadline for fil- ing the 100 to 200 petition signa- tures required to get on the ballot. | | Michigan | Washington, D.C. www.dykema.com Withdrawal deadline is Jan. 12 for dropouts, City Clerk Kathleen Buda said. Robert Ankeny: (313) 446-0404; © 2006 Dykema Gossett PLLC [email protected] DETROIT BUSINESS MAIN 01-01-07 A 6,7 CDB 12/29/2006 2:09 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS January 1, 2007

2006 Newsmakers of the Year Talal Chahine dismiss three charges because she played a mi- nor role, Assistant U.S. Attorney Kenneth Chad- Gilbert: Founder, owner Newsmaker well said in December. She is to be sentenced La Shish Restaurants Inc. ■ From Page 1 April 11 and faces between 30 months and 37 Dearborn months in prison and fines of up to $250,000. As he told Crain’s in October: “You Gilbert would consolidate his three lend- More than a year after the Internal Revenue But it was the Hezbollah links that attracted have to have a creation-of-wealth mind- ing centers in Livonia and Troy into a Service raided the headquarters of La Shish the most attention. set. People forget that wealth is created headquarters, a la Pe- Restaurants Inc. and the home of founder Talal In a May detention hearing, the U.S. attorney’s in the head, not something printed by ter Karmanos Jr. of Compuware Corp., who Chahine, the public learned why. office alleged El Aouar was a flight risk because the government that gets distributed publicly and repeatedly urged Gilbert to In May, a grand jury Chahine was a speaker at a fundraising event in every year.” join him downtown. (See story, Page 20.) charged Chahine and his for- Lebanon, along with Muhammed Hussein Fadlal- Gilbert didn’t just talk about it. In No- In January, Gilbert and partner mer wife, Elfat El Aouar, with lah, the spiritual leader of Hezbollah; had spon- vember he announced that he had David Katzman, a Quicken Loans four counts of tax evasion. sored 40 Lebanese orphans of “martyrs;” and be- formed and funded Bizdom U. an entre- vice chairman, through their Camelot The U.S. government also cause he and El Aouar had posed for pictures at a preneurial academy that starts this Ventures L.L.C., were lead investors in a linked Chahine to Hezbollah, Hezbollah outpost in Lebanon. month in rented space at Wayne State $32 million equity investment in Pleas- the Shiite group considered a Chahine, in an e-mail to Crain’s in October, University, with $10 million. ant Ridge-based ePrize L.L.C., the fast- terrorist organization by the said he doesn’t “support, condone or promote A two-year program to teach entre- growing Internet-based promotion and U.S. — a link he denies. terrorism of any kind by any person, religious preneurship to area residents so they marketing company. Founder and CEO Chahine founded La Shish in 1989, expanded can start businesses in the city of De- Josh Linkner said he would use the cash organization or political party, including it to 14 restaurants and became a prominent troit — Gilbert will pay for students to to fund growth and possible acquisitions. Hezbollah. I unconditionally disavow, con- member of the local Lebanese community. live at The Towers, WSU’s newest resi- Linkner projects ePrize’s 2006 rev- demn and despise acts of terrorism.” dence hall, and will provide them meals enue at $40 million, up from $29 million But according to the government, Chahine In May, Chahine told Crain’s he hoped to re- and lend them a laptop and Blackberry in 2005. “I don’t mean to downplay the and El Aouar, a former La Shish financial offi- turn to the U.S. by the end of June, but has not — Bizdom U. will also fund some star- money, but more important for us has cer, kept two sets of books. Together, they failed done so and is believed to be in Lebanon. tups with investments ranging from been his advice and help. His experi- to pay taxes on $20 million of restaurant sales “He has fled the country and to my knowl- $25,000 to $500,000, with the academy re- ence has helped us immensely,” he said. over a five-year period and, with interest and edge has no intent of ever returning, and his taining an equity position in the suc- Linkner said Gilbert attends all-day penalties, owe more than $20 million. purpose in fleeing the country was to avoid cessful businesses in order to provide board meetings and often brings Rock El Aouar pleaded guilty to one charge of tax prosecution,” Chadwell said in December. seed money for more startups. executives to ePrize headquarters for evasion in December. The government agreed to — Brent Snavely Gilbert told Crain’s in an interview brainstorming sessions. over the Christmas holidays that he “He’s extraordinary, and that’s not a started Bizdom U because “I was born word I use lightly. ... He’s one of those in Detroit and I’ve lived in metro De- big-picture guys who can manage the Mary Sue Coleman again in the run-up to and aftermath of the No- troit my whole life. I just feel that if process and the details of running a vember election, in which voters approved Pro- President someone in my position can effect posi- business. A lot of big-picture guys can’t posal 2. It prohibits public entities from using University of Michigan tive change, financially and otherwise, think their way out of a box,” said race or gender preferences in hiring, contract- you have an obligation to do so. Linkner. “We never talk revenue fig- Ann Arbor ing and university admissions. “I get very excited about influencing ures. He always talks about how to University of Michigan President Mary Sue When it passed in November, she directed people to get closer to their potential. grow the business and create some- Coleman made news locally and nationally last the university’s top lawyers to explore all legal The only way out — and I mean the only thing special.” year in two fights: One for an Internet-search options. Coleman in late November announced way out — for the city of Detroit is to David Brandon, the CEO of Ann Ar- giant to establish a major local presence and the formation of “Diversity Blueprints,” a cam- have wealth-making entrepreneurial bor-based Domino’s Pizza Inc., served on one against the passage of a state affirmative- puswide committee to identify ways to main- companies,” said Gilbert, who founded the Rock Financial board of directors in action ban. tain diversity at UM. Rock Financial in 1985 as a 22-year-old the early to mid-1990s, before it was sold Three years before Google Then, in mid-December under Coleman’s di- first-year law student at Wayne State. to Intuit Inc. in 1999 for about $370 mil- Inc. announced its plans to rection, UM’s attorneys joined with those at Among Gilbert’s other 2006 activities: lion in stock. Gilbert and a small group move its AdWords division — Michigan State University and Wayne State Univer- In September, Camelot launched of investors bought the company back and 1,000 jobs — to the Ann sity in filing a joint motion in federal court to Livonia-based Fathead L.L.C. after as- in 2002 for about $130 million. Arbor area, Coleman visited seek a short-term delay in implementing Pro- suming the licensing agreements of a “If you go to Webster’s and look up ‘en- Larry Page, Google co- posal 2 in order to complete the current year’s company with the same name that had trepreneur,’ you see a picture of Dan,” founder and president and a admissions and financial aid cycles. gone defunct in June. Fathead sells, said Brandon. “He’s a bold thinker, he UM alumnus, at the compa- On Dec. 19, the three universities obtained a through the Internet, life-sized vinyl looks at the big picture, and he gets it ny’s California headquarters. Coleman further court-ordered delay until July 1. The universi- wall graphics of professional sports right most of the time. When he gets it stoked his interest in Ann Arbor at a gradua- ties won’t be able to request further delays, the stars, logos of pro and college teams, wrong, he really gets it wrong, but he tion ceremony for UM’s School of Engineering. court ordered, but they could ask the state in “Star Wars” characters and NASCAR doesn’t care, because he’s a dreamer.” In 2005, Coleman announced Google’s agree- the future to clarify the universities’ rights and vehicles. The company has 35 employ- Jay Farner is a Quicken vice presi- ment with UM to digitize 7 million volumes responsibilities under the new amendment. ees, with projected revenue of about $25 dent in charge of mortgage production from the university’s libraries. UM said it had no plans to initiate additional million for the year ending Aug. 31. in all 50 states, overseeing all 1,800 In July, Google announced it would move its legal actions on the proposal “at this time” but In October, the Rock Financial Junior mortgage bankers in the company’s second-largest division to Ann Arbor after con- added that in the future it will defend any chal- Achievement Park opened in downtown four loan centers. sidering Boston and several other locations. lenges to its interpretation of the proposal. Detroit, thanks in large part to nearly He joined Rock in 1996 after getting She put her powers of persuasion to work — Sherri Begin $1 million in funding from Rock. his finance degree from Michigan State Thanks also to corporate sponsors, the University. The plan, he said, was to work 10,000 middle school students a year a year, make some money, then go back with the Wayne State University Physicians Group, who are expected to learn about the to school to get his MBA. He never left. Michael Duggan upping the ante of ongoing contract negotiations business world there will be able to vis- “I remember in 1997 or so, Dan calling CEO between DMC and the WSU physicians. it a realistic mall inside the 12,500- me into his office and saying, ‘What do Detroit Medical Center square-foot facility, complete with you know about this Internet thing?’ ” It was reported in September that the DMC’s “Wallflower” doesn’t appear to be in the vo- 68 residency programs and the DMC and WSU mock offices or storefronts for Rock, Up till then, Rock had been a phone- cabulary of Detroit Medical Center CEO Michael School of Medicine’s futures were at risk if the Pulte Homes, General Motors, Comerica, based business. Duggan, and it showed in 2006. sides couldn’t settle their contract dispute. AAA, Allstate, Humana of Michigan, DTE, “Not much,” was his answer. Togeth- From aggressively pursuing new physicians Duggan cited the medical school’s affiliation AT&T and the Somerset Collection. er they took a crash course, figuring out and expanding the hospital’s reach, to tough with Dearborn-based Oakwood Healthcare Inc. Despite a meltdown in the local what they’d need to run a mortgage negotiations with represen- and startup of a Troy-based medical center as a housing market and a slowdown nation- business online. tatives of the Wayne State Uni- ally, Quicken Loans, which operates un- By 1999, Rock was big enough in the versity School of Medicine, sign that the school wasn’t as committed to the der the Rock name in Michigan, contin- sector for Intuit to come calling. Duggan and the DMC did DMC as the DMC was to the school. ued humming along. According to “Working with Dan was a life-chang- anything but shrink from the The squabble caught the attention of the Ac- National Mortgage News, it has been the ing event,” said Farner. “He identifies spotlight in 2006. creditation Council for Graduate Medical Education, nation’s largest online mortgage lender people who have potential, and he does In September, he pitched which evaluates and accredits all medical resi- for more than two years and is the 12th- what he can to unlock it. Dan doesn’t the DMC board’s finance dency programs in the U.S. largest lender overall. look at you like, ‘Hey, do you have 10 committee on a $123 million, The sides had been renegotiating their old Quicken closed about $18 billion in years of experience or an incredible ré- 25-bed heart hospital within Harper University contract after it was extended March 31 until loans in 2006, up from $16 billion in 2005, sumé or an Ivy League education?’ He Hospital that would centralize the system’s car- Dec. 31 for several years. But the possibility of and it projects $20 billion for 2007. The wants to know if you want to work hard diac services. a mass shutdown of shared residency programs company continues to hire more than 200 and get ahead. He loves people who, as And in February the DMC reported it had a eventually prompted Gov. Jennifer Granholm employees a month, with a count at year- he says, ‘go deep.’ ” $13 million end-of-year profit on $1.9 billion in to referee 11th-hour negotiations. end of nearly 3,900, most of them in He can change lives, but can he revenue for 2005, a more than fivefold increase In late November, the DMC and physicians Southeast Michigan. Quicken expects change Detroit? He’ll try. in net income from the previous year. group announced that they had agreed to a 3½- 2006 revenue to be about $750 million, up Tom Henderson: (313) 446-0337, “It’s about changing expectations,” Duggan year, $76 million-a-year agreement preserving from $554 million in 2005. [email protected] told Crain’s at the time. the long-standing relationship between the in- And during the year, there was a Sheena Harrison: (313) 446-0325, Proof came in July when he told Crain’s that stitution and their shared residency programs. will-he-or-won’t-he buzz over whether [email protected] the DMC would be OK without its affiliation — Andrew Dietderich DETROIT BUSINESS MAIN 01-01-07 A 6,7 CDB 12/29/2006 2:09 PM Page 2

January 1, 2007 CRAIN’S DETROIT BUSINESS Page 7

2006 Newsmakers of the Year Jennifer Granholm homeland security and defense, L. Brooks Patterson his Repeal SBT campaign was a Bob Rossiter and alternative energy. surprise even to supporters. Ulti- Governor Granholm acknowledged the Oakland County Executive mately, he raised $921,440 and spent Chairman and CEO State of Michigan state had more work to do. But L. Brooks Patterson’s six-month $918,490. Contributors included Re- Lear Corp. Gov. Jennifer Granholm she said her economic plan, crusade to repeal the state’s single- publican gubernatorial candidate Southfield pulled off a victory in November which included accelerating business tax drew critics, but the Dick DeVos, Plymouth philan- Shortly after Toledo-based in a hard-fought battle for four public-infrastructure projects, Oakland County executive never- thropist Robert Thompson, Plasti- Dana Corp. filed for Chapter 11 more years in office. matching qualified workers theless delivered a quick victory. pak Packaging Inc., Kojaian Ventures bankruptcy in March, South- Granholm prevailed in the with jobs and retraining others, In his State of the County address L.L.C., and Waste Management Inc. field-based Lear Corp. went face of a weak state economy was what Michigan needed. in February, Patterson announced Early in the campaign, a bill sim- through a run of seemingly bad and job losses, and a deep-pock- On Nov. 7, a majority of he would champion a petition drive ilar to Patterson’s proposal was ve- news and Lear Chairman and eted opponent who highlighted Michigan voters agreed, elect- to raise $800,000 in three months to toed by Gov. Jennifer Granholm, CEO Bob Rossiter found himself those issues in his campaign. ing Granholm by a 56 percent-42 end the tax two years earlier than its who said she wouldn’t support it in the middle of speculation that Republican percent margin. scheduled expira- without a tax to replace the rev- the company would be among West Michi- Three weeks after the elec- tion. enue. But the August legislative ap- the next round of suppliers to go gan business- tion, Granholm unveiled a busi- Within the proval was not subject to veto. belly-up. man Dick De- ness-tax proposal that she said first month, Pat- “When the damnable SBT is gone In a matter of weeks, Lear lost Vos spent would give Michigan the lowest terson an- and there is a fair corporate tax in its its CFO to Raytheon Co., lost its $41.6 million, rate in the country. nounced he had place, businesses will expand, jobs president of corporate develop- compared Her $2.5 billion plan would re- collected $615,000 will be created, new businesses will ment to Noble with place Michigan’s $1.9 billion sin- in pledges and locate here, and those businesses International Granholm’s gle-business tax, cut personal- $185,000 in loan that are about to pull up stakes will Ltd. and had to $14.6 million. property taxes on industrial and guarantees. State lawmakers in Au- remain,” Patterson said during his disclose a mi- But as DeVos argued that commercial property by some gust voted to end the tax on Dec. 31, February address. “From all those nor restate- Granholm in four years had $619 million and rely more heav- 2007. new businesses and new jobs, new ment of earn- failed to turn Michigan’s econo- ily on a business’ profits. Patterson’s past successes are revenues will begin to flow immedi- ings. my around, Granholm coun- Granholm pushed the Legis- well-known: In 1999, he created the ately to the state treasury.” Investors tered. Case in point: the state’s lature to pass a business-tax re- This year, watch Patterson try to were getting high-tech industry consortium Au- 21st Century Jobs Fund, a $1 bil- placement and her proposed snag support for his own Cobo Cen- nervous that Lear’s plan to cre- tomation Alley, which now boasts lion effort to target emerging $4,000 Merit Award scholarship ter plan, competing with an estimat- ate an interiors joint venture sectors and industries. before they finished work for nearly 700 companies. He also ed $1 billion proposal by Wayne with New York financier Wilbur In the fall, the state made its the year. But lawmakers passed spearheaded Emerging Sectors, the County Executive Robert Ficano. Ross was sputtering. Ross want- first round of awards from the only the scholarship, leaving county’s push to identify, attract Patterson said he would unveil al- ed to combine Lear’s interiors di- fund, for proposals in life sci- the business-tax debate to re- and retain industries of the future. ternatives in this year’s State of the vision with Collins & Aikman ences, advanced automotive ma- sume this year. Still, the speed with which Pat- County address. Corp.’s North American opera- terials and manufacturing, — Amy Lane terson was able to land support for — Anjali Fluker tions, but Collins & Aikman later decided against it. “Right after Dana, everybody is asking who’s next,” Rossiter George Jackson Jr. million facade-improvement Sandra Pierce ask: ‘What can we do to help the said in March. “It’s not us.” program, a $20 million gap- community where we live and By the fall, Rossiter had deliv- President President and CEO, work?’ ” Pierce told Crain’s at the financing program to spur resi- Michigan and ered on promises made to Wall Detroit Economic Growth Corp. time of the ePrize deal. “We can’t be Street a year earlier. In October, dential redevelopment and side- Charter One Bank Detroit Mayor Kwame Kil- walk and streetscape improve- a healthy bank if our community is- Lear announced the completion Detroit patrick sometimes refers to ments. n’t healthy. What is Michigan’s No. of the formation of an interiors George Jackson as “my little He and his staff also assisted It was a headline-making year for 1 need? No one would disagree that company with Ross in Europe. general.” Culminating with sig- Cleveland-based Ferchill Group in Sandra Pierce and Charter One. the No. 1 economic issue is jobs.” In that deal, Lear contributed nificant ma- getting started on its $170 mil- In February, Pierce and Michi- In May, the bank also announced most of its European interior jor projects lion-plus redevelopment of the gan Gov. Jen- it was launching the Charter One business to International Automo- in 2006, the Book Cadillac Hotel and moved nifer Granholm Housing Bank, a $250 million initia- tive Components Group, a joint ven- announced a former DTE ahead on getting a major resi- tive to fund low-interest loans to ture with Ross’ private equity Energy Corp. jobs-creation, be- dential and retail complex for nonprofit developers of affordable fund, W.L. Ross & Co. L.L.C., and executive has low- prime $200 the former Uniroyal site on East housing. The rate during construc- Franklin Mutual Advisers L.L.C., an commanded million loan pro- Jefferson at Belle Isle. tion is 5 percent and is fixed at a rate investment advisory firm. In ex- the city’s re- Roger Penske, chairman and gram for compa- tied to prime, with a cap of 7 percent, nies willing to change, Lear received a one- development CEO of Penske Corp. and chair- for the life of the loan. commit to jobs in third equity interest in the new campaign for the last five years. man of the XL Host To date, five loans have closed for the state. company. Among these was the launch Committee, credits Jackson for a total of $19.1 million to build 232 of the long-awaited redevelop- For every employee a company Then, on Dec. 1, Lear reached being the go-to guy for getting units of affordable housing. a definitive agreement with Ross ment of the east riverfront fol- promised to hire during the next In October, for the second year in things done. to transfer its North American lowing final negotiations to re- three years, it could get $40,000 at 4.99 a row, the bank was named the No. The DEGC is a private, non- interior business and $25 million move cement silos. Agreements percent from Charter One for the life 1 Small Business Administration profit corporation that gives of cash to another joint venture, have been reached with develop- of the loan. In May, the first loan of $6 lender in Michigan in both num- technical, financial and develop- International Automotive Compo- ers for apartment, condomini- ment assistance to businesses million was made to Sterling bers of loans and dollar volume for nents Group North America L.L.C. um and retail complexes on the and the city. It staffs city devel- Heights-based US Farathane Corp. In the year that ended Sept. 29. Getting that deal done was silo sites and on land once con- opment agencies, such as the July, the bank closed on a $10 million The bank made 940 loans totaling important because the financial sidered for casino development Downtown Development Authority. loan to Pleasant Ridge-based Internet $45.4 million. Troy-based National outlook for Lear’s interiors di- east of the Renaissance Center. Jackson, formerly director of marketing company ePrize L.L.C. City Bank, Michigan, made the sec- Jackson and his DEGC staff customer marketing at DTE, Since then, four other loans have ond most loans, 476; Ann Arbor- vision was bleak. For the first also completed the Lower Wood- spent 26 years there before being been made totalling $15 million, with based Republic Bancorp Inc., was sec- nine months of the year, Lear ward Initiative leading up to Su- hired by Kilpatrick in 2002. 10 more loans in the pipeline. ond in volume at $41.4 million. said the division had sales of per Bowl XL, which included a $12 — Robert Ankeny “When we come to a market, we — Tom Henderson about $2 billion and “significant losses.” Still, challenges remain. Lear’s main customers, the Big Stanford Ovshinsky L.L.C. and Ovonyx Inc. — gained trac- Cobasys would provide the battery cember, investment firm Merriman Three, continue to lose market tion in their respective markets. system for GM’s 2007 Saturn Aura Investment Services said in a note share. Plus, Lear is still con- Co-founder Energy Conversion Devices Green Line midsize sedan, expect- that IBM Corp. could be the next nected to one of the most talked Energy Conversion Devices Inc. about deals that didn’t happen broke ground in Greenville this ed to be available in the spring. major licensee. Rochester Hills in 2006: the sale of Collins & year for its third solar-panel plant. The company announced new li- Ovshinsky, 84, who has met Stanford Ovshinsky has been on United Solar, censing agreements for its technol- Aikman’s North American op- presidents and prime ministers erations. a nearly five-decade mission to im- which makes ogy, most in the Asia-Pacific re- from around the world, lost his gion. And it was chosen by the Collins & Aikman, in bank- prove the world using science. flexible panels wife and business partner, Iris, And when you look over the 46- that convert Michigan Economic Development ruptcy since 2005, shifted gears when she died at 79 in August. But year history of Energy Conversion sunlight to ener- Corp. as an example of technology in November and announced one statement she made to him Devices Inc., the Rochester Hills- gy, has a six- success stories in the state. the entire company is for sale. shortly before her death has stuck based company he co-founded with month backlog Ovonyx, a joint venture with In- So what’s next? In 2007, watch his late wife, Iris, 2006 may stand of orders. tel Inc. in which ECD owns 39 per- with him. to see if Ross is finally able to out as the year the world started to Cobasys land- cent, is developing a new kind of “We used to say, ‘We can change combine Lear’s interior divi- catch up with him. ed a contract in January to pro- memory chip. There have been re- the world,’ ” Ovshinsky said. “Iris, sion with Collins & Aikman’s That’s because three of the 800- vide its battery systems for a hy- ports that Samsung, which licenses before she died, said, ‘Stan, we are North American operations, or employee company’s subsidiaries brid line of the Saturn Vue. In Ovonyx’s technology, could begin changing the world.’ ” if a competing bidder prevails. — United Solar Ovonic L.L.C., Cobasys December, it was announced mass production this year. In De- — Andrew Dietderich — Brent Snavely DETROIT BUSINESS MAIN 01-01-07 A 8 CDB 12/29/2006 2:10 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 1, 2007 OPINION You’re not standing still; neither are we he new year is always a time for new beginnings, and it’s no different here at Crain’s Detroit Business. T Our resolution for 2007 is this: To do an even better job of covering the ideas and actions that can improve our re- gional and state economy. You’re going to see more about co- operative efforts such as One D, as well as a sharper focus on entrepreneurs, people building companies and industries here. And we’ll do that while continuing to provide the industry- specific breaking-news coverage that has been Crain’s hall- mark for more than 20 years. We’re also adding some new special features this year and improving some old ones. Those changes include: Business Lives, which appears the first Monday of each month, is the new name of the former Executive Life. We’re adding more advice about careers and managing and balanc- ing home and work life. Restaurants and housing will still be important areas, too. Plus we’re adding a regular monthly fea- ture, Mixed Media, a look at what businesspeople read, listen to and watch for information and entertainment. (See Page 11.) On March 19, we’ll publish “Building a new economy: The Crain’s guide to private equity, angel investing and ven- LETTERS ture capital.” This first-of-its-kind special issue will examine who the players are, how much they have available to invest, and what they’re doing to help jump-start startups or retool es- tablished companies. Transplant proposals unwise This summer, we’ll recognize Woodward Avenue’s 200th Editor: birthday with a special supplement that zeroes in on business- Crain’s Detroit Business New tax is a bad step I wanted to point out something es along this important commercial corridor. welcomes letters to the editor. Editor: you did not include in your Dec. 11 All letters will be considered for Cool Places to Work, which recognizes metro Detroit’s I am disappointed by Keith article, “Hospitals push to expand publication, provided they are most employee-friendly workplaces, returns Sept. 3. transplants.” signed and do not defame Crain’s Dec. 4 column, “A good We also will recognize business achievement in various My first experience in bone- individuals or organizations. first step on business taxes.” forms: immigrant success stories in American Dreamers on marrow transplants was as a clini- Letters may be edited for length There is absolutely no good first and clarity. step on any new tax. March 26; 20 in their 20s, April 30; top CFOs, May 28; top sales- cal coordinator for bone-marrow transplants at Henry Ford Hospi- Write: Editor, Crain’s Detroit Why do we have to have any people in Power Sellers, July 9; Health Care Heroes, Aug. 6; 40 tal, where I worked for four years. Business, 1155 Gratiot Ave., new tax? Detroit, MI 48207-2997. Under 40, Sept. 24; and Detroit’s Most Influential Women, Oct. 8. Then, I went over to Oakwood Michigan’s single-business tax Nomination details for all of these programs will appear on Hospital and started the program E-mail: [email protected] was finally, after a long struggle, our Web site, www.crainsdetroit.com. Click on “Surveys and there. These hospitals trying to ob- removed. The primary reason it forms” on the left-hand navigation bar. tain a Certificate of Need do not gram to keep up with the Joneses. was removed was due to its severe understand what it takes to start a Hopefully, the state will study burden on Michigan businesses. You’ll see video news features and Webinars added to our One burden removed, and an- program, and I am not sure if they this aspect before handing giving Web site, as well as interactive lists, more photos and special other to take its place. Now that is are committed to make a program CON approval to any Tom, Dick Web-only content. Our daily e-mails, delivered free of charge, successful. progressive thinking. and Harry that wants a program. have a new look and special Web-only content, too. To sign up, In order to succeed, a team of Let’s say that there will be no go to www.crainsdetroit.com and click on “register for e-mail trained physicians and nurses I would not let my family or new taxes. What happens now? friends anywhere near these insti- alerts.” And you can access a wireless version of our site on with a tremendous amount of sup- Well, some firms, ours included, tutions for a bone-marrow trans- may have some revenue left over your PDA or cell phone, at www.crainsdetroit.com/mobile. port staff needs to be in place to just begin the process. Neither in- plant. Cancer treatment, yes. Just at year’s end. One of the first If you have comments or suggestions for coverage, please e- stitution has established this and not a bone-marrow transplant. things we would do would be to mail them to Executive Editor Cindy Goodaker at cgoodaker@ should not be allowed to just start Steven Hutchings look to spend it on things we need. crain.com. a bone-marrow transplant pro- Brownstown Township See Letters, Page 9

KEITH CRAIN: Let’s just hope the best come forward

With the announcement last state to state trying to state to state in search dates, and, of course, the myriad nation, not including Michigan. week of former Sen. John Ed- woo as many party dele- of delegates. pundits and consultants. In fact, we should consider, if wards’ campaign for the U.S. presi- gates as you can with Our system seems Somehow I think it is probably that is the way the game is played dency almost two years ahead of campaigning and then open primarily to pro- wishful thinking on my part to now, changing our schedule to be- the election, and many months be- show up at the national fessional politicians. hope that we might be able to see come one of the first states to have fore any of the primaries, it looks convention with the That’s why, I guess, we some fresh, highly intelligent and a primary election or party cau- like the race has begun. nomination in your keep hearing the same knowledgeable person emerge cus. There doesn’t seem to be It would seem very difficult pocket. names. Politicians from all this confusion and burst much reason for us to hold them these days for anyone who doesn’t It isn’t a system that seem quite happy to into the national consciousness. when the results are already have a couple of years to toss into seems designed to en- spend the time re- Instead, it looks for all the world known by the time we go to the the task to make a commitment to courage the best possi- quired. as if we’ll have half a dozen well- polls. run for the presidency. ble candidates to run. I It also gives the news recognized professional politi- Our Legislature should make The way our system works, as have a hard time imag- channels plenty to talk cians vying for our interest and that change. Then at least we’ll near as I can tell, you have to ining Dwight Eisenhower spend- about and lots of people to inter- initially vying for the support of a have some small voice in the spend that much time going from ing a couple of years going from view, including potential candi- few voters in key states around the process. DETROIT BUSINESS MAIN 01-01-07 A 17 CDB 12/29/2006 2:11 PM Page 1

January 1, 2007 CRAIN’S DETROIT BUSINESS Page 17 BUSINESS DIARY BRIEFLY ACQUISITIONS ed a readership survey by mail for the let, call (800) 882-5720, Ext. 8374. Kilpatrick unveils neighborhood largest tenant, General Motors Ann Arbor Business Review and Oak- Janeeva Inc., an Ann Arbor software Corp., vacated the eight-story, land Business Review. company specializing in outsourcing MOVES revitalization plan 200,000-square foot building Wagner Design of Ann Arbor has been relationship-management software, The Office of Jean M. Stenger, CPA, Detroit Mayor Kwame Kil- about four years ago. Southfield- has acquired Vantage Technologies named by Mackinac State Historic plc, from Canton Township to 9401 based Colliers International was the Parks as one of its agencies of record. patrick and industrialist Dave from Vantage Partners, a Boston- General Drive, Suite 101, Plymouth. broker for former owner Marty Qualitech, Bingham Farms, was se- Bing on Dec. 19 announced the based software company. Terms were Telephone: (734) 254-0574. Web: Goldman and had listed the build- not disclosed. lected by Oakwood Healthcare Inc., www.jeanstengercpa.com. first phase of a three-pronged ing’s price at $6.5 million and the Dearborn, to provide, install and train Clor Studios, a commercial photogra- neighborhood rejuvenation effort CALLS FOR ENTRIES employees on the Skyline Property phy and commercial and fine art for the city, called the “Next De- lease rate at $10.50 a square foot. Management System. — Jennette Smith, Anjali Fluker The Greater Romeo Washington studio, from Auburn Hills to 400 Wa- troit Neighborhood Initiative.” Chamber of Commerce is calling upon The Marketing Source, a Livonia ad- ter St., Suite 203, Rochester. Tele- Two areas are slated for full- artists to design a new logo for the vertising, marketing and public-rela- phone: (248) 609-2401. Web site: tions agency, has been named agency scale redevelopment because of Bacall signs 3 for Oak Park center chamber. Artists of all ages are wel- www.clorstudios.com. of record for , extreme blight and abandoned come to design a two-color logo that AP Home Services Walled Lake, and for homes and stores. These — Farmington Hills-based Bacall includes all of the communities in Grabill Windows NEW PROGRAMS and Doors, Algonac. The Marketing Development L.L.C. has signed northwest Macomb County. The prize Brightmoor, from Grand River to Source has also been selected to create Wayne County Community College Starbucks, T-Mobile and FedEx for the winning logo is a $100 U.S. Sav- Schoolcraft between Evergreen a new Web site for Two Lakes Building District and Wayne State University ings Bond. Prizes for the first and sec- and Telegraph, and Northend, Kinko’s as tenants for Greenfield Corp., a Southfield builder specializ- announced WayneDirect, a new part- ond runner-up will be awarded. Dead- Square in Oak Park. ing in Northern Michigan homes. nership between the two Detroit- from East Grand Boulevard to line: Jan. 19. For more information, based schools. WayneDirect is de- Webb between Woodward and I- The shopping center of more call (586) 752-4436. Orange Egg Advertising Inc., Ann Ar- signed to offer early admission to than 35,000 square feet is on the bor, has been contracted by the Music 75 — will require a complete WSU to WCCCD students who desig- overhaul with new land-use plan- site of the former Mel Farr Ford at CONTRACTS Hall Center for the Performing Arts, nate WSU as the university where Detroit as its advertising agency of ning, the mayor’s study showed. 10 Mile and Greenfield roads. The The Greater Detroit Area Health Coun- they will complete their bachelor’s de- record. grees and meets transfer admission Also slated for such revitaliza- three stores will take about 7,100 cil has awarded a second-year imple- McGraw Wentworth, Troy, has been requirements. square feet, said Eddie Bacall, mentation agreement to Thomas tion are: Grand River-Greenfield, retained by Avfuel Corp., an aviation from Schoolcraft to Fenkell be- managing member for Bacall De- Group Inc., Detroit and Dallas, for its fuel and services company headquar- Save Lives Save Dollars health care NEW SOFTWARE tween Greenfield and Schaefer; velopment. tered in Ann Arbor, to manage health — Anjali Fluker initiative, which aims to achieve 100 benefits for its 160 employees. Gene Codes Corp., Ann Arbor, has and Osborn Community, be- percent adherence to select clinical launched version 4.7 of Sequencher, John Bailey & Associates Inc. Public tween Eight and Seven Mile guidelines and produce savings of its DNA sequence assembly and roads, from Van Dyke to Gratiot. $500 million over three years, or re- Relations, Troy, has added the follow- analysis program. Parajan to seek library rezoning ing new clients: DuPont Automotive, Two other neighborhoods — duce the rate of increase in health VIA, Troy, has released its Manage- Troy-based Parajan Investments care expenditures by 1 percent to 3 Troy; Spalding DeDecker Associates the Bagley community, from Six Inc., Detroit, Rochester Hills and ment Dashboard software product L.L.C. is expected to appear before percent in Southeast Michigan. that allows manufacturers to view Mile to Eight Mile between Liv- Trenton; and SoftTech Solutions ernois and ; and East the Madison Heights City Coun- Altair Engineering Inc., Troy, an- L.L.C., Auburn Hills. real-time plant floor data. nounced Changchun Railway Vehicle English Village, from Mack to cil on Jan. 8 to request the rezon- Co. of Changchun City, China, has se- Blaze Construction, a Detroit-based ing of a nearly 1-acre site that contractor, has awarded Soulliere PATENTS Harper from Cadieux to East lected Altair HyperWorks CAE tech- was a former city library branch. , Troy, has se- Outer Drive — have been chosen nology to support the development of Decorative Stone, a Macomb Town- LifTrac Monitoring L.L.C. cured patent approval for a medical for reinforcement. The city had asked for a mini- high-speed passenger rail transport ship-based brick paver contractor, a and emergency alert notification de- mum bid of $318,000 for the now- systems. contract to supply and install granite The project is co-chaired by pavers in the walkways surrounding vice that combines and offers the lat- closed 4,081-square-foot building, Golden Limousine Inc., Ann Arbor, Bing, president and CEO of The MGM Grand Detroit Casino. est available wireless technology. said Jim Schafer, community de- was chosen by ball- and roller-bearing Bing Group, and Walt Watkins, re- velopment director. Parajan has manufacturer NSK Corp., Ann Arbor, EXPANSIONS STARTUPS tired banker and former city as its exclusive ground-transportation chief development officer. proposed using the property for provider for corporate travel. Caboodle Cartridge of Farmington Your Business Greeting Cards, Com- Some partners in the Neighbor- office space and may move some imX Solutions, Royal Oak, announced Hills has opened at 29602 Orchard merce Township, provides personal- of its operations to the site. ized greeting card mailings for busi- hoods Initiative include the Skill- the Lottery is to distribute Lake Road, Farmington Hills. The — Anjali Fluker, Sheena Harrison new store is a franchisee of a Califor- nesses and individuals. Susan man Foundation, Detroit LISC, the imX Solutions’ promotional, educa- Knight Foundation, the Kresge Founda- tional and secured research cards nia-based chain specializing in re- Schultz, a former international busi- through designated independent re- filled inkjet and toner cartridges. ness consultant, is the owner. Web tion, Community Foundation for South- site: www.yourbusinessgreeting Majority leader names staff tailers this fall. The cards are being Telephone: (248) 539-5820. east Michigan, Detroit Public Schools cards.com. used to help launch the Colorado Lot- Prototech Laser Inc., an industrial and Gov. Granholm’s Cities of Matt Miner has been tapped to tery’s newest online game, Match- laser-cutting and metal-fabricating Reveal Inspection, Westland, uses Promise initiative, Kilpatrick said. continue as chief of staff for Sen- high-tech equipment to help Play. manufacturer with plants in Clinton — Robert Ankeny ate Majority Leader-elect Mike Douglas Communications Group Township and Chesterfield Township, homeowners, Realtors, contractors, and commercial property owners find Bishop, R-Rochester, a post Miner L.L.C., Royal Oak, has been chosen by has added 6,000 square feet of manu- water leaks and energy losses. Tele- has held during Bishop’s Senate Morningside Group, Chicago, to pro- facturing space. phone: (734) 405-2444. Web site: 2 Visteon plants sold, term. Cami Pendell, director of vide public-relations services for www.revealinspection.com. SkyLofts MarketSquare in Royal Oak GROUNDBREAKINGS no deal for others the office of the president for Blue All American Business Centers, 13854 and Liberty Lofts in Ann Arbor. Whitehall Real Estate Interests, Farm- Cross and Blue Shield of Michigan, Lakeside Circle, Sterling Heights, of- Novi-based Cooper-Standard Au- Broder & Sachse Real Estate Services ington Hills, and Hotel Investment has been named Bishop’s legisla- fers executive offices and services for , Birmingham, has been named Services, Troy, have broken ground tomotive has agreed to buy Ford Mo- tive director. Carmel Roberts, gen- Inc. new businesses. Benefits include a for a Staybridge Suites Hotel at Grand tor Co.’s fuel rail operation in El property manager for Nottingham shared secretary/receptionist, office eral counsel and senior vice presi- River Avenue and Beck Road in Novi. Jarudo, Mexico, one of two former Knolls, an 84-unit apartment complex equipment, conference room and dent of government affairs for the The 108-room, all-suites hotel is to at 4535 Turner St., Trenton. kitchen privileges, security and mag- Visteon Corp. parts-making plants Michigan Association of Insurance open in fall 2007. SmithGroup Inc., Detroit, designed the netic key access. Telephone: (586) 932- that Ford has agreed to sell. Also, Agents, will be Bishop’s director of $23 million Kohrman Hall renovation 1888. Flex-N-Gate Corp. JOINT VENTURES , of Urbana, Ill., policy and communications. underway at Western Michigan Uni- Fidelity Commercial Services L.L.C., has agreed to buy Ford’s fascia versity, Kalamazoo. The renovation is — Amy Lane Abear & Gaggos P.C., a law practice at 32100 Telegraph Road, Suite 215, Bing- and fuel tank operations in Milan. to be completed in September. 31000 Telegraph Road, Suite 270, Bing- ham Farms, specializes in title ser- The deal is subject to a new labor Integral Vision Inc., Wixom, received ham Farms, has been formed by the vices for commercial transactions. Fi- agreement with the UAW. Sowerby to speak at Ideas an order for a SharpEye inspection law firm of Abear & Associates P.C. delity Commercial Services is aligned system from Liquavista BV, a Nether- and William Gaggos, attorney at law with Title Connect L.L.C., a title insur- Van Buren Township-based Before Dawn Jan. 10 lands-based company. and CPA. Telephone: (248) 647-1500. ance agency in Farmington Hills and Visteon said Dec. 19 talks have GKN Driveline Torque Technology, Grant, Millman & Johnson P.C., Bingham Farms. Telephone: (248) 642- ended without a deal to sell drive- “Opportunities in 2007 for Lo- Auburn Hills, has developed a version certified public accountants and 1155. train plants in Europe and Brazil cal Business and The Capital of its high-performance helical limit- business consultants, 30180 Orchard to British parts supplier GKN plc. Markets” is the topic of the Jan. ed-slip differential for Renault’s new Lake Road, Suite 300, Farmington OTHER — Crain News Service 10 Ideas Before Dawn breakfast. limited-edition Megane F1 Team-R26. Hills, is the combination of the prac- Detroit-based Comerica Bank has be- The speaker will be David tices of Grant, Millman & Johnson Attendance on Demand Inc., a Farm- gun piloting a voice-guidance ATM Sowerby, vice president and ington Hills Web-hosted employee P.C., and Richard Edgar, CPA. Tele- machine for the visually impaired at Pontiac building auctioned portfolio manager for Loomis, time and attendance service, has been phone: (248) 626-5252. Web site: its Rochester Road branch in selected by Mimi’s Cookies dba Great www.grantmillman.com. Rochester Hills. The Ottawa Tower office build- Sayles & Co. L.P. American Cookies of Wilmington, ing in Pontiac was bought at auc- The Downtown Detroit Partner- N.C., to monitor and track employee LITERATURE tion the week of Dec. 15 for about ship and Crain’s Detroit Business time and attendance from any com- Automation Alley, Troy, announced it $411,000 plus about $850,000 in are the speaker series’ present- puter with Internet access. Atten- is launching X-ology Magazine, a new back taxes by Grand Rapids- ing sponsors. Other sponsors in- dance on Demand distributor Labor DIARY GUIDELINES technology and lifestyle magazine for clude Checker Sedan, LaSalle Bank, Strategy of Greensboro, N.C. manages Send news releases for Business based Markland Development Co., the region’s tech-savvy consumers. said broker Michael Dudash of the Michigan Association of Certi- the installation. The new quarterly magazine is to be- Diary to Joanne Scharich, Crain’s Awecomm Web Strategies, Troy, has gin in January, with each issue focus- Detroit Business, 1155 Gratiot Livonia-based Creative Commer- fied Public Accountants and Spald- agreed to create HireItDoneRadio. ing on a particular sector of the re- Ave., Detroit, MI 48207-2997 or cial Real Estate Inc. ing DeDecker Associates Inc. com, a Web site for the “Hire It Done!” gion’s technology industry. The send e-mail to jscharich@crain. The first tenant is required to The 8 a.m.-9:30 a.m. meeting is radio show hosted by Adam Helfman. premier issue is to focus on the life- com. Use any Business Diary item lease a minimum of about 20,000 at the Detroit Athletic Club, 241 Power Marketing, Ann Arbor, com- sciences industry. as a model for your release, and square feet, Dudash said. Mark- Madison Ave., Detroit. Cost is pleted two survey projects for local Visiting Nurse Association of South- look for the appropriate category. land is expected to offer leases for $30. Register at www.downtown businesses: The First Thought Survey east Michigan, Oak Park, has updated Without complete information, your as low as $4.95 per square foot. partnership.org by Friday. For for Ann Arbor Radio, was a telephone its free Consumer’s Guide to Home item will not run. Photos are survey measuring overall awareness Health Care. The booklet contains in- welcome, but we cannot guarantee The Ottawa Tower, next to the more information, call (313) 964- of local businesses in several cate- formation on home health care and they will be used. Phoenix Plaza parking garage, had 8500. gories. Power Marketing also complet- Medicaid fraud. To receive the book- been on the market since its — Joanne Scharich DETROIT BUSINESS MAIN 01-01-07 A 18 CDB 12/29/2006 2:13 PM Page 1 Page2006 18 YearCRAIN’S DETROIT BUSINESS in revJanuary 1, 2007 Super success In the money Chancery Court, where Valassis was Detroit developer Dwight Be- trying to back out of the merger it lyue announced in March @water Detroit scored as host of Febru- Two Ann Arbor-based announced in August because it ac- Lofts, a $119.6 million complex of ary’s Super Bowl XL, but the long- life-sciences companies cused Advo of deceiving it over its 480 luxury condominiums east of term win for the city could be the secured some big-time finances. Advo countersued to en- the Renaissance Center. efforts it spawned and people it venture capital in 2006: force the deal, calling Valassis’ The Detroit Economic Develop- propelled. Cerenis Therapeutics move “buyer’s remorse.” The com- ment Corp. in December approved a Hot off his run as Super Bowl Inc. in November an- panies agreed to have the cased dis- development agreement for a $58 Host Committee chairman, Roger nounced it would receive missed with prejudice. The new million, 112-unit residential com- Penske was tapped in May to be $53.5 million from U.S., deal, expected to close in the first plex east of the St. Aubin marina chairman of the Downtown Detroit French, Swedish, Ger- quarter of 2007, is contingent on on the former site of the Cemex ce- Partnership and Penske announced man and Japanese firms Advo shareholder approval. No ment plant. The developer is he would to help bring its choles- date has been scheduled for that Springarn L.L.C., whose principals seek pri- terol-fighting drugs to vote. The new company will operate include Dave Bing, chairman and vate-sector market. It was likely the PEOPLE WE LOST under the Valassis name. CEO of The Bing Group. funding for largest VC investment in For a list of Michael Coleman, general Pittsburgh-based Bettis/Bet- a downtown state history, and fol- prominent local manager of WDET 101.9 FM, re- ters Development L.L.C. plans to cleanup ini- lowed Cerenis’ first ven- people who died in signed in December after a 17- transform the 43-acre former tiative. ture investment of $30.5 2006, see “This month tenure that included plead- Uniroyal site Mayor million in July. week’s Crain’s” at ing no contest to an embezzlement near the Belle Kwame Kil- NanoBio Corp. in Au- www.crainsdetroit. charge. Coleman was charged with Isle Bridge into patrick, com. gust received $30 million felony embezzlement over accusa- more than 1,000 Penske and from a Washington pri- tions he took money, plane tickets condos, town the partner- vate-equity firm, at the and meals during his two years as homes and ship in October announced the re- time the second-largest deputy director at Ann Arbor-based apartments. Bet- turn of a Grand Prix race to Belle investment during the Michigan Public Media, his job before tis/Betters, Isle in 2007 for the first time since past 10 years for a state coming to WDET. In June, he plead- whose partners 2001. biotech company. ed to a reduced misdemeanor are Pittsburgh After a dress rehearsal in 2005 charge and was fined $3,500, given businessman and as the main event before the Bettis two years’ probation and 50 hours C.J. Betters and Super Bowl, the Motown Winter Here’s to your health of community service. retired Pittsburgh Steelers player Blast announced in December it Health care systems The state’s Office of Financial Jerome Bettis, also plan a $25 mil- would return for an encore — with announced plans to ex- and Insurance Services revoked the lion riverfront housing develop- a new name — in 2007. Detroit’s Win- pand in 2006, including: license of World Wide Financial Ser- ment on the 1.7-acre site of the for- ter Blast is planned for Feb. 9-11. William Beaumont vices Inc. and imposed fines against mer Holnan Inc. cement silo. Hospitals, which filed for NEWSCOM the Southfield-based insurance Tiger tales state approval in Sep- Magglio Ordoñez rounds the bases after hitting a firm. World Wide, which did busi- Jobs on the line tember for a $141 million home run to seal the Detroit Tigers’ American ness as LoanGiant.com, admitted to The Detroit Tigers’ fairy-tale expansion of its Troy League pennant. numerous violations of state law. Germany-based ThyssenKrupp season was good for the fans — and campus that includes a tute to help fund an addition, up- During the course of two years AG began closing plants and selling the franchise’s value. The team’s seven-story critical-care tower and grades, a new in-clinic pharmacy and six trials, U.S. District Judges off divisions of ThyssenKrupp Budd trip to the pennant boosted the an expanded emergency depart- and increased prostate research. John Feikens and Nancy Edmunds Co. in 2006. In October, the company team’s value to an estimated $365 ment. Beaumont also met in No- Former Chateau Land Develop- ordered more than $1.2 billion in announced plans to sell the biggest million, up more than 53 percent vember with Independence Town- ment Co. partner J. Peter Ministrel- restitution payments in the sen- portion, its body and chassis divi- since a 2004 post-season calcula- ship officials to discuss a 192-bed li and his wife, Florine, gave stock tencing of former MCA Financial sion. The company plans to main- tion by Forbes. Patrick Anderson, medical campus. valued at $15 million to William Corp. executives, the largest case of tain its office in Troy with about a principal in Lansing-based eco- Flint-based McLaren Health Care Beaumont Hospital to fund cardiac business fraud in state history. two dozen employees. nomic and business consultant An- Corp. in July finished the purchase and urological research. The Detroit Medical Center and Leo Burnett Detroit in July lost derson Economic Group L.L.C., re- of Mt. Clemens General Hospital. The The Riley Foundation, the family Wayne State University School of Medi- the $225 million Cadillac ad ac- leased a study in November with $3.1 billion system also received foundation of television-wiring en- cine in December received full ac- count, which it held since 1936, to the new franchise value. state approval the same month to trepreneur George Riley, gave $5 creditation of their 68 joint residen- Boston-based Modernista. By Sep- Detroit leaders announced in build a $17.7 million surgery center, million to Detroit Public Television to cy programs for two years following tember, the Troy-based agency had June a $40 million-$70 million plan a key part of its plan for a $600 mil- launch a $22 million campaign. a review by a national group and whittled itself down to about 200 to build shops and homes where lion health care village in Indepen- A. Alfred Taubman gave $3 the signing of a long-awaited con- employees from about 280. Tiger Stadium stands, preserving dence Township. The project re- million to Wayne State University to tract in November. The two sides, Southfield-based Lear Corp., the old ballfield as a public park. ceived conceptual site-plan-review long at odds over physician pay and help construction of the Damon J. Auburn Hills-based Borg Warner No developers have been selected, approval in November from the exclusivity agreements, reached a Keith Center for Civil Rights. Inc. and Visteon Corp. were among but firms seeking to township’s Planning Board. three-year deal that calls for the bid on dismantling the the local automotive suppliers in DMC to pay WSU $76 million a year the fall to retrench in the wake of stadium toured the site Cases and controversies for faculty and residency services in December. Philanthropy Big Three production cutbacks. and reimbursement for care that Several announced layoffs in an- The holidays might be a time for Elfat El Aouar, former wife of doctors provide uninsured and un- ticipation or response to cuts in giving, but gifts to educational and La Shish Restaurants Inc. founder Ta- derinsured DMC patients. Left turn North American auto production. health institutions knew no season lal Chahine, pleaded guilty in U.S. Dearborn-based DFCU Financial Dura Automotive Systems Inc. in It was the Year of last year. District Court in Detroit in December Credit Union in April voluntarily October became the eighth major the Donkey, no Among to one count of aiding and abetting withdrew its application to convert U.S. auto supplier to file for bank- doubt, with Gov. the ma- tax evasion. El Aouar and Chahine from a credit union to a mutual sav- Jennifer were indicted by a grand jury in ruptcy. In all, more than 36 suppli- jor be- ings bank. The conversion, first re- ers have sought protection from Granholm win- quests of May on four counts of tax evasion ported in Decem- ning another for failing to pay taxes on $20 mil- creditors since 1999. Rochester 2006: ber 2005, would Hills-based Dura has been hit by term and her The lion of restaurant sales. Chahine have been the party taking rising raw-material costs, particu- late left the U.S. in September 2005 for largest in the control of the Lebanon, according to a motion larly for steel, as well as cuts in Josephine country. state House of Representatives. filed by the U.S. government in Au- North American auto production. Ford gave That mirrored the national picture, gust, and hasn’t returned. $50 million to where Democrats now have the Livonia-based Valassis Commu- Rolling on Changing hands, leadership of both the U.S. House the College for nications Inc., the nation’s No. 2 the river and Senate, and the state’s delega- Creative coupon company, in December joining hands tion, including U.S. Reps. John Studies. worked out a $1.2 billion merger Development Detroit kept ownership but Belyue Dingell and John Conyers and The Karmanos family agreement with direct-mail giant and redevelop- handed over management respon- U.S. Sen. Carl Levin, assume gave $25 million to the Bar- Advo Inc. of Windsor, Conn. The ment on the Detroit riverfront con- sibility for the Detroit Zoological In- more powerful roles. bara Ann Karmanos Cancer Insti- companies were in Delaware’s tinued throughout 2006: stitute, the Detroit Historical Muse- DETROIT BUSINESS MAIN 01-01-07 A 19 CDB 12/29/2006 2:14 PM Page 1 eviewJanuary 1, 2007 CRAIN’S DETROIT BUSINESS Page 19 ums and Eastern Mar- vate the Book Cadillac Hotel and a ket. deal was reached in June to finance Bud Brian in the $180 million project through 17 June sold Highland sources of funding. Park-based market- BASF Corp. plans a $150 million ing and distribu- project to move research and devel- tion services com- opment, administrative and manu- pany Budco to an facturing to Wyandotte from Wis- investor group led consin, aided by more than $20 by Toronto business- million in state tax credits ap- man Perry Miele. proved in October. The project is ex- Virchow Krause & pected to create 175 jobs. Co. L.L.P. announced last year? Take our quiz. in April a merger Take the 2006 newsCrain’s quiz Bold plans with Farmington Hills accounting firm How well do you remember what you read in Wayne Kleiman, Carney & County Execu- 1. Racing legend turned entrepreneur Roger Penske did not do tive Robert Fi- Greenbaum P.C., mak- the following this year: ing it one of the 10 cano in Decem- Helped secure the return of the Grand Prix to Detroit. largest accounting A. ber announced firms in the state and B. Found no job, including picking up trash, too small as Super Bowl XL Host Committee chairman. his plan to ex- 13th-largest in the U.S. C. Wrote a letter to help persuade a national retailer to locate in The Shoppes at Gateway Park in Detroit, pand Cobo Cen- a proposed 325,000-square-foot retail center near the Michigan State Fairground in Detroit. ter based on revenue. at a cost of nearly $1 bil- The Federal Re- D. Confirmed his interest in buying Delphi Steering from Delphi Corp. lion. The pro- serve Bank’s board of E. Rejected offer to coach Lions, saying, “Even my power has its limits.” posal would governors in December Ficano add 270,000 approved the proposed 2. La Shish owner Talal Chahine said he left for Lebanon square feet of exhibition space merger announced in before the feds indicted him on tax-evasion charges because he: by demolishing Cobo Arena, July between Flint-based A. Wanted to find some new recipes. and connect the complex to the Citizens Banking Corp. and B. Sought to help clear his son’s name in a murder. Marriott Hotel via a moving Ann Arbor-based Repub- C. Needed some peace and quiet away from his troubles. walkway, with total construc- lic Bancorp Inc. The new D. Figured La Shish Mideast was the next logical location after covering all the tion costs estimated at $425 Flint-based entity will be compass points of Southeast Michigan. million. The proposal envi- called Citizens Republic sions financing to come from Bancorp Inc. the surtax on hotel rooms and Plymouth-based Met- 3. “Evil ” is: A. Ambivalent graffiti spotted in a GM restroom next to a liquor set when Cobo was last aldyne Corp. agreed in Sep- caricature of Kirk Kerkorian. expanded in the 1980s. Due to tember to be acquired by B. A St. Clair Shores ad agency and marketing and consulting firm expire in 2015, Ficano’s plan Japan-based Asahi Tec Corp. that went into limbo after two of its founders jumped ship. extends it for another 35 for $1.2 billion. Metaldyne C. Sing it: “800-333-R-O-C-K!” years. He said he would con- said it expects to close the D. An “avatar” developed by Leo Burnett Detroit in the Second Life tinue to meet with top gov- transaction by Jan. 15. virtual that hawks Pontiacs in the real world. ernment and business lead- San Francisco-based ers to promote the plan and private-equity firm Hellman 4. In a pre-election interview, Gov. Jennifer Granholm said answer objections from & Friedman L.L.C. in August which of the following excites her? such officials as Oakland made an investment in A. Taxes. County Executive L. Southfield-based turnaround B. Alternative energy. Brooks Patterson and De- firm AlixPartners L.L.C. Details C. China. troit City Council Presi- weren’t released, but Alix- D. Helping Dick DeVos remake Michigan — in the private sector. dent Kenneth Cockrel. Partners said the private-eq- TechTown, along uity firm and the managing di- 5. Match the executive with the exit, entrance or re-entrance. with Wayne State Universi- rectors and employees A. Left company after being named a president and COO ty, Henry Ford Health Sys- 1. Richard Blouse a month earlier; hired in October to be CEO combined will own a majority of another firm. tem and General Motors share. Corp., is shopping a mas- B. Announced retirement in May and plans to lead a local Italy-based Luxottica Group 2. Terence Adderley startup. Decided in August to remain in current position and ter plan for a $1.3 billion, S.p.A. agreed to acquire South- postponed retirement until 2008. 43-acre, multiuse re- field-based D.O.C Optics Corp. for C. Left helm of one college to lead another. newal project south of Tommi White Detroit’s New Center. about $90 million. D.O.C Presi- 3. D. Company chairman and CEO deemed medically incapacitated dent and CEO Richard Golden 4. Keith Pretty after a “cardiac incident” in February and interim leader named. Returns in The partners, all major said he and his brother, Randal, DWIGHT CENDROWSKI May as nonexecutive chairman; resumes chairmanship in August. land-owners in the who is a co-owner, would not re- area, said in December main with the company but they want to develop could be hired as consultants. Answers: 1. E; 2. B; 3. B (though partial credit for C); 4. A; 5. 1-B; 2-D; 3-A; 4-C the project in four phas- es over 10 years. It would The Goldens continue to own the include retail and office 19-store Selective Eyewear Elements space, faculty and student housing, chain. a train station and a theater. Southfield-based Schostak University of Detroit Mercy in With a $1 billion government Bros. & Co. Inc. said in April it left year lease and continues to scout December said it would spend research project stalled in 2005, the regional mall business and out a permanent location. $25.5 million to move the UDM Coming attractions Michigan State University is trying an- spent about $125 million acquir- Bloomfield Park broke ground in Dental School and Clinic from its ing retail strip centers to diversi- Google Inc. said in December it December, announcing more than Outer Drive campus in Detroit to other route to upgrade its rare iso- fy its holdings and expand its will take over 80,000 square feet of 20 tenants for its first phase, includ- the former Kindred Hospital-Metro tope research capabilities: a request business. the newly redeveloped McKinley ing H&M, Banana Republic, Bath & Detroit site near downtown. The for $520 million in federal grants. UnitedAuto Group Inc. an- Towne Center on Division Street in Body Works and Hyde Park Steak- school is expected to move in Janu- The smaller project would help the nounced in June it would be the Ann Arbor beginning in March for house. Developer Craig Schubiner ary 2008, and bring 120 employees school improve its production of the exclusive distributor for Daimler- its AdWords unit. Plans are to hire redeemed the mortgage in Septem- and 400 employees to the Core City subatomic materials, which could Chrysler AG’s new SmartForTwo 1,000 employees in the next five ber for the mixed-use project and neighborhood. have implications in areas includ- and set up a subsidiary in Bloom- years. The company, which said in brought in two investment groups Detroit’s Downtown Develop- ing nuclear weapons and reactors, field Hills to distribute and market July it was putting AdWords in to provide capital construction and ment Authority in May approved an astronomical observations, medical the minicar. Washtenaw County, signed a four- expertise. agreement to redevelop and reno- imaging and cancer treatments. DETROIT BUSINESS MAIN 01-01-07 A 20 CDB 12/29/2006 5:06 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 1, 2007 2. A shopping list for the new congressional majority

It’s common for the electorate to mittees, to exert Institutes of Health, whose list of op the new vehicles should be se- on Iraq, and U.S. Sen. Carl Levin’s rail against federal pork-barrel their newfound hopefuls includes Wayne State Uni- lected in late 2007 or early 2008. expected return to the chairman- spending, such as the infamous influence on versity, the University of Michigan and “It could definitely help us with ship of the Senate Armed Services “bridge to nowhere” in . several propos- MSU. If selected, they could be some research money to the major Committee could help bring more But such spending often is miracu- als, including: among 60 institutions to share $500 universities, es- military contracts to Michigan lously transformed into “economic Michigan million annually once the program pecially with firms. development” when lawmakers State University’s is fully operating in 2012. The NIH Dingell running bring that bacon home. request for $520 is favoring institutions that can The state likely will remain a technology and By whichever name, Southeast million in feder- prove they are focusing on broad re- energy,” said donor state, he said, which means Michigan could find more of it in al grants to up- search aimed at getting new treat- John Lind- it pays more in taxes than it re- the months ahead as the state dele- Dingell grade its rare ments more quickly to patients. ceives in federal spending — about gation assumes more powerful isotope research Sterling Heights-based General strom, editor of 88 cents on each dollar. But the roles. Expect lawmakers such as facility, which could have implica- Dynamics Land Systems’ push for as Gongwer News power shift in Washington could U.S. Rep. John Dingell, who re- tions in many areas, including nu- much as $15 billion from a military Service, a Lans- turns after more than a decade to clear weapons and reactors, astro- program to develop a replacement ing-based daily tip the scales a little closer to pari- Levin chair the House Committee on En- nomical observations, medical vehicle for some of the 150,000 political report- ty, which itself could mean “sever- ergy and Commerce, one of the imaging and cancer treatment. Humvees now used by U.S. forces. ing service. But Lindstrom said al hundred million dollars more in most powerful congressional com- New funding from the National Contractors to research and devel- Washington’s short-term focus is transportation funding.” 3. Betting 4. Game-changing developments?

Several potential development Avenue, the former J.L. Hudson’s A proposal for expanding outstanding (which will cost the projects that could change the department store location; and Cobo Center put forward by Wayne region $140 million if paid over on the face of downtown Detroit bear the property on Grand Circus the full term), plus an additional County Executive Robert Ficano watching in 2007: Park between Washington Boule- $233 million to be disbursed to may have some legs despite the The city is trying to entice vard and Bagley Street. Both are naysayers. counties as the return of over-col- Dan Gilbert, chairman and owned by the city. While the total amount of the lected liquor taxes. great race founder of Livonia-based Quicken Still, Gilbert and company re- An early 2007 announcement proposal, $968 million, seems Loans/Rock Financial Inc., to move main cagey: Elizabeth Jones, vice is expected from Ilitch Holdings daunting at first, Ficano’s aides One hot race to watch in 2007 its headquarters downtown. president of communications for President and say the actual new costs for con- won’t be the return of the Grand Detroit Economic Growth Corp. Quicken Loans/Rock Financial, CEO Chris Il- struction total about $425 million, Prix to Belle Isle, but the race be- President George Jackson Jr. has said the company is exploring itch on tween two permanent casino pro- some powerful allies in this effort. various alternatives and loca- plus another $180 million for an whether there jects on the near west side of down- Mike Ilitch, chairman of Ilitch tions, and “it will be some time endowment to create revenue for should be ma- annual operating costs. Some town. Holdings Inc., whose holdings in- before any decision is made.” jor renovations economists estimate the North MGM Grand Detroit L.L.C., owned clude Little Caesar Enterprises Inc., “Quicken Loans has three years and upgrades American International Auto by MGM Mirage of Las Vegas, will the Detroit Tigers and Detroit Red remaining on the lease of our cur- at Joe Louis Show has an economic impact of be finishing an entirely new cam- Wings; and Peter Karmanos Jr., rent headquarters space in Livo- Arena, or $500 million on the region every pus consisting of a casino, 400- CEO of Compuware Corp., have nia, which includes an option to whether steps year. should be tak- room hotel and parking deck been urging Gilbert to join them. extend,” said Elizabeth Jones, Ilitch Sites being promoted by Jack- Quicken Loans/Rock Financial The money already slated to be en to build a northeast of Michigan Avenue and son include the land above the vice president for communica- spent includes $110 million to pay new home for the Red Wings. the Lodge Freeway. It plans a Premier Garage on Woodward tions. off Cobo expansion bonds now — Robert Ankeny grand opening in the fourth quar- ter of 2007. Just up the freeway at Grand River Avenue, MotorCity Casino L.L.C., owned by Little Caesars Corp. matriarch Marian Ilitch, plans to 5. Times of upheaval for auto sector open its expanded gambling area on Grand River and Brooklyn in Don’t expect the pace of change Motors Corp. holder. had more to do with asbestos liti- the first quarter of 2007, with com- in the local automotive industry Delphi has said that in order to The company also announced gation than the factors that are pletion of its 400-room hotel and to slow in 2007. be financially stable it must modi- that Chairman and CEO Steve hurting most of the North Ameri- new parking deck by the fourth In fact, auto insiders are braced fy its U.S. labor agreements and Miller would step down as CEO to- can automotive industry. A hear- quarter. for what could be an even more conclude its negotiations with GM day and be succeeded by Presi- ing on the company’s plan of reor- Meanwhile, Greektown Casino turbulent year for mergers and ac- to obtain financial support for the dent and COO Rodney O’Neal. ganization is scheduled for Feb. 2 L.L.C. will be trying to figure out quisitions, financial woes and legacy and labor costs that Delphi O’Neal is expected to be president in U.S. Bankruptcy Court in how to compete with its two big bankruptcies of tier-two suppli- currently carries. and CEO when Delphi emerges Delaware. ers. Plus, the United Auto Workers A private-equity group led by from bankruptcy. sisters across town. Due to prob- Collins & Aikman Corp., which is scheduled to renegotiate its Appaloosa Management L.P. and Plymouth-based Metaldyne lems acquiring needed property, filed for bankruptcy in 2005, filed master contracts with the Big Cerebrus Capital Management L.P. Corp. is expected to wrap up its Greektown, owned 90 percent by a revised bankruptcy plan in De- Three (See story, Page 3). agreed in December to invest up $1.2 billion agreement to be ac- the Sault Ste. Marie Tribe of Chippe- More specifically, watch for the to $3.4 billion in Delphi. Under quired by Shizuoka, Japan-based cember that calls for sale of the wa Indians, has reported to the following in 2007: terms of the deal, the group could Asahi Tec this month. company’s assets and closure. In Michigan Gaming Control Board that Troy-based Delphi Corp. seeks end up with between 30 percent After five years in Chapter 11 December, the Southfield-based its new hotel and casino expansion to exit Chapter 11 bankruptcy by and 70 percent of a reorganized bankruptcy, Southfield-based Fed- company announced it had select- is running about nine months late, the middle of the year. Delphi, Delphi. A rival offer the same eral-Mogul Corp. is planning to ed a lead bidder for its carpeting with completion not expected until which filed for bankruptcy protec- week for $4.7 billion came from emerge as a profitable company and soft-trim unit, but that sale late 2008. tion in October 2005, is still in Highland Capital Management L.P., by April. must still be completed. — Robert Ankeny talks with the UAW and General Delphi’s second-largest share- Federal-Mogul’s bankruptcy — Brent Snavely Talks: Stakes high for region in UAW-Big Three negotiations ■ From Page 3 The UAW is also in the midst of troit’s three casinos expire in 2007. fect on Southeast Michigan.” “The negotiations are going to ed since its peak of 1.5 million in contract talks with Delphi Corp. Del- “I think we’re already seeing Perry, who does not represent be vital and will arguably deter- 1979, due to market share losses of phi has been in Chapter 11 bank- what’s at stake for Southeast the UAW or any of the automak- mine the size and profitability of the Big Three and the movement of ruptcy since October 2005 and has Michigan,” said James Perry, a la- ers, said both must find a way to the U.S. auto industry for three, manufacturing capacity overseas. threatened to ask a judge to give it bor and employment-law specialist construct an agreement that al- four, five years and maybe forev- The union had average member- permission to reject its existing and member of Dickinson Wright lows the automakers to deal with er,” said Gerald Meyers, adjunct UAW contract if an agreement P.L.L.C. “Look around. Look at at least some of the issues that are professor of management and or- ship of about 598,000 in 2005, and cannot be reached. property values … as these compa- contributing to labor costs that are ganizations at the University of that’s likely to soon dip below Plus, UAW agreements with sev- nies become smaller factors in the much higher than their global ri- Michigan. 500,000, if it hasn’t already, accord- eral large suppliers as well as De- U.S. and the world, it has a huge ef- vals. UAW membership has plummet- See Talks, Page 21 DETROIT BUSINESS MAIN 01-01-07 A 21 CDB 12/29/2006 4:19 PM Page 1

January 1, 2007 CRAIN’S DETROIT BUSINESS Page 21 Questor: Buyout firm will not launch new fund www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] which companies are selling are to decide to leave the firm early Francisco-based private-equity aerospace deals in the next year ASSOCIATE PUBLISHER Christopher Crain, (313) now higher than in the past. The this year. firm, Hellman & Friedman L.L.C., and likely will be funded by past in- 446-1645 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- turnaround business is risky, any- In August, Janitz told Crain’s to AlixPartners’ 78 managing di- vestors in 0460 or [email protected] way. It was felt that the risk of that Questor would launch a third rectors and more than 400 other Questor funds, MANAGING EDITOR Jeff Karoub, (313) 446-0402 or [email protected] dealing with troubled companies, fund after finding buyers for five employees. Alix remains as co- he said. DEPUTY MANAGING EDITOR Michael Lee, (313) now, isn’t worth the price,” he of its six portfolio companies. The chairman of AlixPartners. “Kevin has 446-0416 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Michelle said. company’s first fund of $300 mil- “I don’t think there’s any ques- moved the idea Martinez, (313) 446-1622 or Barring a change of mind, that lion, Questor Partners Fund I L.P., tion there’s a lot of money chasing quite far along, [email protected] BUSINESS LIVES EDITOR Shawn Selby, (313) will mean the demise of the state’s was raised in 1995. The $865 mil- deals, and it’s going to be harder to and others are 446-1654 or [email protected] second-largest private-equity com- lion Questor Partners Fund II L.P., get returns than it was a few years studying it,” he GRAPHICS EDITOR Nancy Clark, (313) 446-1608 pany. The Southfield-based firm raised in 1999, is almost fully in- ago,” said John said. or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 has nearly $1.2 billion under man- vested. Donnelly, man- In March, an or [email protected] agement. Wind Point Partners, co- The two funds made 20 acquisi- aging partner of industry DATA EDITOR Anne Marks, (313) 446-0418 or Prokop [email protected] headquartered in Southfield and tions with combined revenue of Donnelly Penman newsletter, Buy- WEB EDITORS Dan Eizans, (313) 446-0473 or [email protected]; Roxanne Rives, (313) 446- Chicago, has about $2 billion un- about $7 billion. Questor currently & Partners, a outs, named a Questor deal as na- 6078 or [email protected] der management. employs 21. Grosse Pointe- tional turnaround of the year for WEB DESIGNER/PRODUCER Ai-Ting Huang, Questor, founded in Ramaekers based invest- 2005. Questor bought California- (313) 446-0403, [email protected] EDITORIAL SUPPORT Anita Duncan, (313) 1995 by Alix and New Questor will said as com- ment banking based GeoLogistics Corp. in 2001 for 446-0329; Joanne Scharich, (313) 446-0419 York investment panies are firm. $65.5 million when it was on the NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 banker Dan Lufkin of continue to manage sold, staffing Ramaekers verge of bankruptcy and had debt Donaldson, Lufkin & Jen- REPORTERS will decrease, Donnelly was with Alix- of $90 million. In September 2005, rette Inc., will contin- though no Partners, then it was sold for $454 million to Robert Ankeny: Covers the city of Detroit, Wayne the six companies County government, and law. (313) 446-0404 or ue to manage the six timetable for called Jay Alix & Associates, in the Kuwait-based PWC Logistics. [email protected]. companies left in its their depar- early 1980s. In the early 1990s, he Ramaekers said that he would- Sherri Begin: Covers nonprofits and education. left in its portfolio, (313) 446-1694 or [email protected] portfolio, build their ture has been led the turnaround of National Car n’t be surprised if current Questor Andrew Dietderich: Covers health care, revenue and, eventu- build their revenue, set. Rental, which was sold by General employees and principals start transportation, international business and biotech. (313) 446-0315 or ally, look for compa- One of the Motors Corp. in 1995 for about $1.5 their own funds or join other pri- [email protected]. nies to buy them. and, eventually, current port- billion. He retired from the compa- vate-equity firms. Sheena Harrison: Covers small business, retail and nonautomotive manufacturing. (313) 446- “My job is to im- folio compa- ny in 2000. “No one has mentioned they’re 0325 or [email protected]. prove their perfor- look for companies nies is South- When Kevin Prokop, a director going off and doing their own Tom Henderson: Covers banking, finance and technology. (313) 446-0337 or mance and ultimately gate-based at Questor, was named in Septem- funds, and I won’t speculate. But [email protected]. harvest them for our to buy them. ASC Inc., ber as a member of the Crain’s 2006 these are talented individuals and Bill Shea: Covers media, advertising and marketing, and Livingston and Washtenaw investors,” said bought from class of 40 Under 40, he said he you’d expect some of them to join counties. (313) 446-1626 or [email protected] Jennette Smith: Covers real estate and Ramaekers, who came out of re- the estate of Heinz Prechter in would use a third fund for a other firms or to start their own hospitality. (313) 446-0414 or tirement in December to replace 2002. planned series of deals in the aero- funds,” said Ramaekers. [email protected]. Brent Snavely: Covers auto suppliers, steel and John Janitz. “They will definitely Alix, the other co-managing space machining industry. The In 2005, three Questor principals restaurants and entertainment. (313) 446-0405 not be sold on a timetable. Deals principal, was unavailable for plan, he said, was to make two or — Garrett Kanehann, Jason Runco or [email protected]. will be done when they make comment last week. three deals a year over the next and Michael Madden — left to LANSING BUREAU Amy Lane: Covers business issues at the Capitol, sense. When all the companies are In August, it was announced four years to build a company with form a own private-equity firm telecommunications and utilities. (517) 371- sold, over the next year or two, that Alix had sold “a considerable more than $300 million in revenue. targeting troubled or turnaround 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. Questor will no longer have a rea- equity stake” in his Southfield- Prokop wasn’t available for companies, Bloomfield Hills-based son to exist, but there’s a lot of based turnaround consulting firm, comment last week. BlackEagle Partners L.L.C., which is ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) work to be done.” AlixPartners L.L.C., which shares the Ramaekers said work will pro- raising a first fund of $250 million. 446-6032 or [email protected] The board’s decision to wind 24th floor of the 2000 Town Center ceed on that set of deals, but not Tom Henderson: (313) 446-0337, SALES INQUIRIES: (313) 446-6052; FAX (313) down operations prompted Janitz building with Questor, to a San with Questor participation. Any [email protected] 393-0997 NEW BUSINESS DEVELOPMENT MANAGER Cathy Ross, (313) 446-0307, [email protected] ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Shawn McCracken, Tamara Rokowski, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) (323) 370-2477 Talks: CLASSIFIED MANAGER Melissa McKay, (313) Negotiations could have far-reaching effects 446-1692 CLASSIFIED ACCOUNT EXECUTIVE Christina ■ From Page 20 Jaranowski, (313) 446-1655 MARKETING DIRECTOR Michelle Minor ing to a story in BusinessWeek in “I think that’s a strikeable is- will likely persist,” he said. er deductibles for UAW members MARKETING ASSISTANT Jennifer Dunn December. sue,” Meyers said. “I think the Sowerby predicts deals will be who seek treatment from the bet- MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea Plus, as many as 95,000 UAW UAW will walk if it’s faced with reached after much bluster. ter performing health care Beckham, YahNica Crawford members could leave their employ- eliminating the Jobs Bank.” “You have to read through the providers. CIRCULATION Candice Yopp, Manager. ers, and active union membership, Layoffs, strikes or slowdowns rhetoric that will no doubt be front- The 2003 agreements with do- PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, over the next several months due to have an immediate impact on hun- page news in the summertime. But mestic automakers preserved full (313) 446-0301 job cuts at a number of auto compa- dreds of local automotive suppliers, the net outcome will be favorable employer-paid health care, with no SUBSCRIPTIONS (313) 446-0450, nies, as well as buyout and early re- and would quickly resonate for both sides,” he said. “If it doesn’t premiums or increased de- (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: tirement packages offered by Ford through the local economy, said happen, the perception for Detroit ductibles. (313) 446-0367 or e-mail the Crain Information Motor Co., General Motors Corp. and Richard Blouse, president and CEO will not be positive.” The co-pay for generic prescrip- Center at [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Delphi, BusinessWeek said. of the Detroit Regional Chamber. The contract talks may also in- tion drugs under the 2003 agree- CRAIN COMMUNICATIONS INC. For that reason, Perry said, the “The auto industry is still the fluence how many other compa- ments is $5, while the co-pay for CHAIRMAN Keith E. Crain UAW will likely try to negotiate big industry in Michigan, and any nies structure wage and benefit brand-name drugs will rise to $10 PRESIDENT Rance Crain SECRETARY Merrilee Crain guarantees that would ensure impact is felt by all businesses,” he plans with their employees, said for UAW employees of the domes- TREASURER Mary Kay Crain UAW membership, such as said. “The evidence of that is our Peter Pratt, senior vice president tic automakers. Executive Vice President/Operations promises not to close plants or cut economy. Look for health policy at Lansing-based If the new contracts provide in- William A. Morrow Group Vice President/Technology, production plans. at the housing Public Sector Consultants Inc. centives for members to go to high- Manufacturing, Circulation “I think the biggest single prob- market here. It’s “I think that this next year is go- er-performing health care Robert C. Adams Vice President/Production & Manufacturing lem that they both face, and that dreadful. We ing to be a really providers Pratt believes it will set Dave Kamis they haven’t been successful in feel it more here crucial year be- a precedent that many other em- Corporate Director/Circulation Patrick Sheposh dealing with, is arresting their because of our cause I think ployers will follow. G.D. Crain Jr. Founder (1885-1973) slide in market share,” Perry said. connection to that you are go- Even so, the influence of UAW Mrs. G.D. Crain Jr. Chairman (1911-1996) One of the most controversial is- the auto indus- ing to see the au- contracts is less than it was the EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) sues that the automakers will like- try.” tos and UAW 1960s, Perry said. 446-6000 ly want to deal with when talks be- David Sower- look at maybe Back then, if the UAW negotiat- Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out gin in July is the Jobs Bank. On Sowerby by, portfolio more innova- ed an additional paid holiday, the of state, $79 one year, $138 for two years. Nov. 29 “CBS Marketwatch” report- manager and tions in plan whole country moved to quickly Outside U.S.A., add $48 per year to out-of-state rate for surface mail. ed that GM is already discussing chief market analyst for Bloom- benefits than adopt a similar provision. Reprints: For inquiries call the reprints department the Jobs Bank with the UAW. field Hills-based investment firm you have in the Today, Perry said, with the au- at: (800) 494-9051, Ext. 144 , or at Pratt [email protected] Both Ford and GM pay for a Jobs Loomis Sayles & Co. L.P., called the past,” Pratt said. tomakers suffering from the bur- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Bank of idled workers that gives contract talks the most important For example, Pratt said he be- den of costs generated by the Jobs published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. near-full benefits and wages to in the past 30 years. He said the re- lieves the automakers are likely to Bank and pension obligations, Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send UAW employees who have been gion’s economic growth has push for greater incentives for their labor agreements aren’t fol- address changes to CRAIN’S DETROIT BUSINESS, laid off due to production cuts and slowed 25 percent-30 percent dur- UAW members to seek medical as- lowed to the same degree. Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in plant closures. ing the past five years become of sistance from hospitals and groups Brent Snavely: (313) 446-0405, U.S.A. However, UAW President Ron the domestic auto industry’s woes. of doctors with the best perfor- [email protected] Entire contents copyright 2007 by Crain Communications Inc. All rights reserved. Gettelfinger has vowed to preserve “If there’s not a positive out- mance records. Likely incentives Reporter Bill Shea contributed to Reproduction or use of editorial content in any the Jobs Bank. come, then that slower growth rate could include lower co-pays or low- this story. manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 01-01-07 A 22 CDB 12/29/2006 4:30 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 1, 2007 Beyond the big automakers BANKRUPTCIES The following businesses filed for 64155 Van Dyke, No. 142, Romeo, The North American International Auto Show means dif- lead-acid batteries. Chapter 7 or 11 protection in U.S. voluntary Chapter 7. Assets and ferent things to the companies and organizations that “This is really the stage where we introduce our new Bankruptcy Court in Detroit Dec. liabilities not available. exhibit or sponsor hospitality events. products,” said Debra Lacey, communications manager 16-28. Under Chapter 11, a com- Property Property L.L.C., 33330 W. Chinese automaker Changfeng Motors will use its for Johnson Controls Automotive. pany files a reorganization plan Eight Mile Road, Farmington, 2007 Detroit debut to gather information for its business One product Johnson Controls plans to unveil is a that the court must approve. voluntary Chapter 11. Assets: Chapter 7 involves total liquida- $1,200,000; liabilities: $4,482,000. strategy for a U.S. rollout. thin front-row seat that increases the amount of legroom tion. Livonia-based Exhibit Works is designing the for rear-seat passengers. Another product, called Mobile Ajay Sports Inc., Pro Golf Interna- Concepts In Laminate Inc., 20962 tional Inc., Pro Golf of America Changfeng exhibit, which will in- Device Gateway, is a software system that helps con- Van Born, Dearborn Heights, vol- Inc., Pro Golf.com Inc., 37735 En- clude five vehicles, sumer electronics such as MP3 players work with a vehi- untary Chapter 7. Assets: $2,750; terprise Court, Suite 600, Farm- “What they are trying to do is ECONOMIC cle’s communication system. liabilities: $637,698.16. ington, voluntary Chapter 11. As- test the waters, get a feel for Amer- Johnson Controls doesn’t have a display on the show Tango Branded Entertainment sets and liabilities not available. ican consumers,” said Jerry Kern, IMPACT floor. Instead, the company displays products for media L.L.C., 20750 Civic Center Drive, Hawkins Equipment Co. Inc., 747 Suite 300, Southfield, voluntary Orchard Lake Road, Pontiac, vol- vice president of global sales for The 2007 and automotive representatives on the second floor. Exhibit Works. The company also The Michigan Economic Development Corp. views the Chapter 11. Assets and liabilities untary Chapter 7. Assets: show’s economic not available. $40,849.25; liabilities: $401,067.86. wants to talk with industry lead- impact is auto show as a huge opportunity to showcase the state’s ers about joint ventures and other estimated at $540 automotive research and development expertise and po- Fleet Information Services Inc., — Compiled by Bowdeya Tweh possibilities, Kern said. “The Chi- million-$550 tential to lead alternative energy technology develop- nese are modeling themselves af- million, according ment. Ann Arbor-based Adaptive Materials, Detroit-based ter Hyundai and Kia.” to David Sowerby, NextEnergy, Orion Township-based Cobasys and other com- For auto suppliers, the game portfolio manager panies will be highlighted in an expanded MEDC exhibit. at the auto show is to exhibit new and chief market “Because we are the host state we have a great oppor- analyst at Loomis, Health care: technology to automakers and the tunity to highlight Michigan,” said MEDC President Survey Sayles & Co. media rather than the general James Epolito. The MEDC will have 15 days to make the public. Johnson Controls Inc.’s Auto- case to industry leaders and visitors about Michigan’s motive Group, for example, plans to feature about a half- skilled work force, universities, venture-capital re- predicts higher costs dozen new technological developments in the areas of sources and other assets, Epolito said. seating and electronics interiors as well as hybrid and — Jennette Smith, Brent Snavely ■ From Page 3 “A lot of it has to do with “That is an oversimplification our aging population,” said of it.” Kent Sharkey, CEO of Troy- Steve Gaynor, superinten- based Total Employee Assistance dent of Bloomfield Hills Schools, Auto Show: Spotlight is on design & Management Inc. “And with knows how variables can af- that corresponds an increase fect health care costs. ■ From Page 1 in health care usage.” Many of the district’s more Gordon Rains, chairman of made many car brands equally reliable, “it’s understood “To me, it’s almost as though you’re in the fashion than 1,000 employees receive Bingham Farms-based The that the big differentiating factor is design,” said Imre world,” said Carl Galeana, co-chairman of the auto show discounts on deductibles for Rains Group, said the aging Molnar, dean of the College for Creative Studies. A design- and vice president of Galeana Automotive Group. “Auto de- taking a simple blood test. The population wants the best er who exemplifies the trend is CCS signers are like clothing designers. Wrapping yourself test serves two purposes: it alum Ralph Gilles, who designed the inside a car is no different than putting on a dress.” health care possible. That in- saves employees money and popular Chrysler 300. Gilles is vice The level of theatrics used with auto displays and cludes use of the latest and finds any early stage prob- president of Jeep/truck and compo- events seems to go in cycles. Scott Stubbs, president and greatest technology. lems, which are much less ex- nent design for Chrysler Group. CEO of Warren-based exhibit company H.B Stubbs said “And that population uses pensive to treat than when the system probably more For the 2007 show, CCS has expand- auto shows in the ’50s and ’60s featured plenty of the- they’re in their later stages. than they should,” Rains said. ed its exhibit space on the show’s low- atrics but that faded away in the ’70s and ’80s. It reap- “We would rather have a The Rains Group is an em- er level, which includes a display of peared in the late 1990s and continues today, with more healthier employee by invest- ployee group-benefits consult- student work. The college also is in- high-tech features as part of the production. ing up-front and saving big ing and brokerage firm owned volved with annual events and awards In general, it takes more than ever to truly impress jour- time versus far down the road by Itasca, Ill.-based Gallagher such as EyesOnDesign and the Au- nalists or show-goers, Stubbs said. That applies whether when there are major expens- toWeek Design Forum. Gilles showcasing a vehicle’s new highly efficient engine or pro- Benefit Services Inc. es,” Gaynor said. “We celebrate the high achievers proving it’s a valid viding a new kind of interactive element at an exhibit. Allied’s Nixon said other But Richard Sheridan, pres- career — sketching motor cars,” Molnar said. “It’s a real “There are new technologies, and it’s our job to stay factors weigh into health care ident and CEO of Ann Arbor- dream job if you have that passion.” on top of them. The younger generation is overexposed rates, as well. For example, de- Robert Albitz, senior vice president of worldwide cre- to some of them,” Stubbs said. mographics such as age, gen- based Menlo Innovations L.L.C., ative for Auburn Hills- Yet while exhibit ar- der, family composition and said there is little option other based The George P. Johnson chitecture and lighting geographic location figure than to provide the best possi- Co., said the company are important, the best into the equation. ble care. works closely with auto approach may not be to Other factors include the “There’s no silver bullet to designers behind the vehi- go all-out with Las Vegas- availability of new treatments reduce health care costs,” he cles in developing displays style glitz, said Anthony and government influences said. “Especially when you’re for auto shows. In recent Zorrilla, vice president of such as state mandates that trying to recruit and maintain years, this interaction has creative for Livonia- shift cost to private insurers. the best possible employees included higher-level de- based Exhibit Works. “There is a misconception you can.” sign staff, often at the vice “I don’t think people that rate increases are a result Andrew Dietderich: (313) 446- president level. need to be hit in the head of inflation,” Nixon said. 0315, [email protected] “It’s very important to PHOTO COURTESY OF THE GEORGE P. JOHNSON CO. with big bright lights,” make sure we are working An LED “ribbon” stretches across the General Motors exhibit, Zorrilla said. “I think closely with the design designed and fabricated by The George P. Johnson Co. you have to be a lot more teams to give us input, to subtle.” strive for harmony,” he said. For the Los Angeles Auto Show, Exhibit Works worked One of the design elements meant to give client Gener- closely with Mazda North America design director Franz Museum: New interest al Motors Corp.’s new exhibit and vehicle lineup more piz- Von Holzhausen on a display with flowing curves for a ■ zazz in this year’s show is a LED “ribbon” that stretches Mazda concept called the Nagare. That display will have a From Page 3 nearly 650 feet, Albitz said. different look in Detroit, with Exhibit Works working as from 1977 to 1999 and is a for- The museum is in Grand “LED technology is becoming more and more of an art a fabricator for London-based Imagination Group. mer president of the Michigan Rapids, the city where Ford form with the layering effect and juxtaposition” of high- The growing prominence of designers and the recogni- Library Association. She said she grew up and represented in and low-resolution elements, he said. A Saab exhibit tion of their importance is one reason design studio staffs “stumbled onto” the museum Congress. Both opened in 1981. with another combination of LED technology is best de- have so far not been on the cutting block at major au- and library job, which became The library and museum are scribed as a digital watercolor painting because of some tomakers, said CCS’ Molnar. In fact, GM hired 14 of CCS’s available when former direc- closed, but have condolence transparent layers. Meanwhile, a Saturn Aura display most recent graduates. tor Dennis Daellenbach decid- books in their lobbies available will showcase the car with an X-ray-like view that “tells Salaries for beginning auto designers with the right cre- ed to retire. for the public to sign. the story without elaborate cut-aways,” Albitz said. dentials and skills are around $60,000 to $80,000 a year “It was just too good of an op- In the coming days, Didier Other exhibit makers, similarly, are working on dis- while higher-level design executives can make six figures, portunity not to take,” she said. will continue to handle media plays that will present vehicles with a high-design feel. Molnar said. It’s competitive, though; of about 100 stu- “I just became fascinated.” “We continue to see elevation changes. You’ll see vehi- dents accepted in the automotive design program at CCS, Didier, who has a staff of 11, requests and prepare for the cles floating,” said Derek Gentile, president and CEO of only 20 are asked back for the second year. oversees the only presidential president’s funeral services. Rochester Hills-based Exhibit Enterprises Inc. “The public “These big downturns and layoffs haven’t hurt our library and museum that are Ford is scheduled to be buried is always interested in seeing a vehicle in a way it placement,” Molnar said. “Design studios are working not in the same location. The li- Wednesday on the museum wouldn’t be seen on the street.” harder than ever and consider themselves understaffed.” brary is on the campus of grounds. Meanwhile, during new vehicle unveilings, celebrity Reporter Bill Shea contributed to this story. Ford’s alma mater, the Univer- Bill Shea: (313) 446-1626, designers are often part of elaborately staged events. Jennette Smith: (313) 446-0414, [email protected] sity of Michigan in Ann Arbor. [email protected] DETROIT BUSINESS MAIN 01-01-07 A 23 CDB 12/29/2006 6:00 PM Page 1

January 1, 2007 CRAIN’S DETROIT BUSINESS Page 23 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEKS OF DEC. 16-29

to two years to start build- RIEFLY renamed Twelve Mile Cross- ing (providing time to sell About 200 jobs B ing at Fountain Walk. WKRK an existing home), or could Delphi Corp. said Friday North Pointe Holdings Corp. view the offer as an invest- that it lost $226 million on announced Dec. 21 that it is being assessed a ment, said David Steuer, to be lost in revenue of $1.3 billion in pretax charge of $1.4 mil- member of Turnberry L.L.C. November, steeper than the lion, about $913,000 after shakeup spurs and president of Farming- $54 million loss on revenue state in LaSalle taxes, to help bail out ton Hills-based Steuer & As- of $1.5 billion the company sociates claims against defunct . reported for October. insurers. On Dec. 15, New York- cutback Trinity Health has sold its sports rumors Online map has views of based Fitch Ratings Ltd. Care Choices HMO, Care Choic- roy-based LaSalle downgraded Detroit Public ongtime sports radio opening of Detroit’s perma- ‘old’ Detroit es PPO and Preferred Choices Bank Midwest N.A. will Schools’ limited tax gener- talk show “Parker nent casinos in 2007 has PPO plans to Grand Rapids- Wanna see what down- cut jobs as part of a al obligation rating to a L and the Man” was re- stepped up with MGM Grand T based Priority Health, pending town Detroit looked like in directive by its parent com- noninvestment grade of portedly canceled Thursday Detroit Casino L.L.C. leasing regulatory approval. 1976, or 1949? pany, Netherlands-based BB+ from BBB-. by WKRK 97.1 FM, a move space near the Renaissance The Arab American Na- Naviciti L.L.C., a Detroit- ABN Amro Bank N.V., for all Lotus Bancorp Inc. an- that may her- Center tional Museum in Dearborn based interactive mapping North American operations nounced Dec. 18 that it had ald the CBS for an has received a $2 million and digital design firm, has to cut staffing by 5 percent. reached its minimum target Radio Inc. sta- employ- grant from the New York an online interactive map That will mean a loss of of $11 million in an initial tion’s effort ment City-based Ford Foundation of Detroit as it appeared in fewer than 200 jobs for public offering begun Sept. to begin and and designation as an affili- 1976. LaSalle Bank Midwest, said 28. It will continue raising simulcasting training ate of the Smithsonian Institu- Visible at www.detroit Rob Darmanin, vice presi- money toward its targeted Detroit Red center. tion in Washington. 1976.naviciti.com, the map dent and director of corpo- maximum of $16 million. Wings games. The Northwest Airlines Corp. Rob Parker and Mark Wilson features aerial photography rate relations. A federal court on Dec. The Detroit casino has is in discussions with Mesa- and 3-dimensional render- Most of the cuts are ex- 19 authorized a delay in im- Free Press also reported on signed a one-year lease on ba Airlines to acquire the re- ings plus hundreds of pho- pected to take place by plementation of Proposal 2 its Web site that the station 25,000 square feet of offices gional carrier. Also, the pi- tographs and historic details midyear. until July 1, 2007, for the lots union at Northwest has has let go Michelle Mc- plus garage space at 600 of individual downtown Kormick, co-host of “Motor Woodbridge and plans to University of Michigan, Michi- sold 20 percent of its bank- buildings, some of which gan State University and ruptcy claim in the compa- City Middays.” The report move in February or March, have since been demolished. Strategic Staffing says was based on a blog item on said Charles Mady, CEO of De- Wayne State University to al- ny’s Chapter 11 case, result- “This is, effectively, a no to DPS contracts low the three to complete ing in about $150 million the Web site of Mc- troit-based Exclusive Realty highly detailed electronic Kormick’s former partner L.L.C. Strategic Staffing Solutions their current funding and that the union can distrib- time capsule,” Naviciti admissions cycles. ute to its members. The in Detroit, Gregg Henson MGM Grand Detroit me- founder and CEO Tony Smith Inc. on Dec 18 rejected two (www.gregghenson.com). dia adviser Bob Berg, of De- Detroit Public Schools con- Great Lakes Health Plan ground workers union has said. said the Oakwood Healthcare asked a judge to let it sell 20 Messages left Friday for troit-based Berg Muirhead & The company plans to tracts that it was awarded WKRK general manager Associates, said the center the previous week to pro- System has joined it as a percent of its bankruptcy add data from other historic service provider. claim and pass the money Kevin Murphy and program will be used to hire and eras, including the 1700s, vide information-technolo- director Craig Schwab were train the more than 1,000 gy services over five years DriveSol Worldwide Inc. to its members, the Detroit 1800s, and at the turn of the said it has bought the as- Free Press reported. not returned. The station’s new employees that MGM 20th century, Smith said. The Board of Education Web site on Friday after- expects for the new 400- on Dec. 14 selected Detroit- sets of Canton, Ohio-based The Pick-Fort Shelby Ho- tel noon still featured “Parker room hotel, plus restau- based VisionIT to continue Timken Co.’s Global Steer- on West Lafayette in De- troit could reopen as a Hilton and the Man” and Mc- rants, retail shops and ex- State’s tourism Web site with its original five-year, ing Business. Doubletree with 204 suites by Kormick as part of the “Mo- panded gambling space in $9.8 million contract. That The Ann Arbor Township draws 10 million visits the end of 2007, developer tor City Middays” crew. its permanent complex, be- was the largest portion of Planning Commission and Emmett Moten said. The Red Wings and Detroit tween Michigan Avenue The state’s new Pure the $58 million the board Ann Arbor Township Board of Joseph Freed & Associ- Tigers are both owned by Il- and Grand River, east of the Michigan campaign has awarded to VisionIT and Trustees on Dec. 18 ap- ates said it has bought 3 itch Holdings Inc. The Tigers Lodge Freeway, scheduled helped drive a record four other minority firms proved the site plan for a acres adjacent to The contract with WXYT 1270 AM to open later this year. amount of traffic to the earlier this year. $40 million, 257-acre resi- Monarch residential and re- has expired, and the Wings MGM currently employs Michigan’s tourism Web The deal with one of dential development by Sil- tail high-rise in Troy, to al- contract with the same sta- more than 2,300 in its tempo- site, Travel Michigan officials those five firms was re- verman Development Co. at low the developers to recon- tion will expire at the end of rary casino south of Michi- said last week. scinded Dec. 14, while the Pontiac Trail and Nixon Road. figure the project. this season. WXYT is a sis- gan Avenue between the The site for the first time owner of another firm is in- The Michigan Economic WDIV-Channel 4’s Ruth ter CBS Radio station to Lodge and Third Avenue. hit the 10 million mark for stead expected to be hired WKRK. Development Corp. approved Spencer will become the Real estate sources said user sessions, up some 41.9 by the district. “We have not signed a $4 million in single-busi- solo anchor of the NBC af- MGM may consider using at percent in 2005. And that The contract previously deal,” said John Hahn, the should translate to new ness-tax credits over six filiate’s new 4 p.m. news- least a portion of that build- was held by Compuware Red Wings’ senior director business for Michigan’s years for Colorado-based cast set to premiere Jan. 8. ing for an employment and Corp., which along with The Michigan Office of of communications. “We’ve tourism industry; a previ- mortgage processor Lender- training center after the per- Strategic Staffing filed Financial and Insurance Ser- been talking, negotiating ous survey of Web visitors Live Network Inc. to expand manent complex opens. protests against the bidding vices on Dec. 22 approved for quite some time.” showed that 67 percent operations to Troy, creat- the sale of M-Care by the Uni- Karen Cullen, vice presi- traveled to Michigan after process and results, saying ing 847 jobs in the state. versity of Michigan to Blue dent of corporate communi- Developer tries new visiting the www. they were flawed. The University of Michi- Cross Blue Shield of Michigan cations at Ilitch Holdings, sales stroke michigan.org Web site. gan has received a $1 mil- said talks are under way N THE MOVE lion donation from Apptis and its Blue Care Network. O The deal also received ap- with other radio companies How about a tee time Inc. Vice Chairman Ranvir BITS & PIECES proval from the state attor- besides CBS. with that title insurance? SMART General Man- Trehan and his wife, ney general on Friday. WKRK currently broad- Real estate developers Conway, MacKenzie & ager Dan Adarsh, to encourage col- casts Detroit Lions games. continue to be creative Dunleavy, Birmingham, was Dirks has laborations between the Cancelling the 7-11 p.m. about finding sales during named one of the nation’s been university and India. OBITUARIES tough times. At one subdi- Outstanding Turnaround elected to A group headed by De- talk show that featured Fred Campbell, founder vision on the Indianwood Firms for 2006 from Turn- a one- troit developer and casino hosts Rob Parker, a Detroit of Campbell Development Co. Golf & Country Club in Orion arounds & Workouts maga- year operator Don Barden has News columnist, and Mark in Southfield, died Dec. 25. Township known as Turn- zine won a license to build a Wilson, a former WJBK-Chan- term as He was 103. berry, the developers are of- Tribute, Farmington casino in Pittsburgh. nel 2 sportscaster, potential- president Maureen DuFour, re- fering home sites for sale Hills, said that it will con- The Huntington Woods ly clears out the time slot of the tired director of volunteer with a pile of incentives: no tinue to serve lunch after City Commission approved for games. Washing- services for Bon Secours money down, no payments the holidays because of Dirks putting a millage proposal WKRK reportedly was to ton-based Hospital, died Dec. 18. She for two years and no mem- high demand. Tribute be- before voters on Feb. 27 begin its Red Wings’ broad- Community Transportation As- was 88. casts on New Year’s Eve, but bership fee to join the coun- gan serving lunch in De- dedicated to preserving the sociation of America. Harry Gersell, retired se- both Hahn and Cullen said try club. This waived fee is cember for the first time Rackham Golf Course. Peter Leger to president nior vice president of store they were unaware of such more than a $15,000 value. since it opened in 1996. HHT Devco L.L.C., which and CEO of Warren-based operations for Winkelman plans. The sites start at $110,000 James Burkhart, vice owns Novi’s Fountain and are in an area with mil- president of global market- MSX International Inc., from Walk, unveiled a redevelop- Stores Inc., died of heart fail- lion-dollar homes. Other ing, Federal-Mogul Corp., CEO of Miami-based VinPlus ment plan, which includes ure Dec. 15. He was 93. MGM signs lease for speculative models are for Southfield, has been honored L.L.C. He replaces Robert adding road extensions and Kathryn Parish, founder training center sale from the mid-$300,000s. by Northwood University for his Netolicka, who is expected razing and reconfiguring of the Doll Hospital and Toy The idea with the lot sales contributions to automotive to stay in an advisory role the north half of the shop- Soldier Shop in Berkley, died The race toward the is that buyers could wait up aftermarket education. until retirement. ping center, which has been Dec. 22. She was 95. DBpageAD.qxd 12/29/2006 3:52 PM Page 1

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