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This issue in two sections (section 1) Vol. 22, No. 23 JUNE 5 – 11, 2006 $1.50 a copy; $59 a year

©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved THIS JUST IN 2006 Detroit Regional Chamber Mackinac Policy Conference Couple gives MSU medical college scouts SE Michigan sites The Michigan State Univer- sity College of Osteopathic Medicine plans to establish a satellite campus in Southeast Michigan and Beaumont begin classes there as early as July 2007. The Detroit Medical Center, Macomb Community College, Oakland Community College, Providence Hospital and the University of Detroit Mercy $15M gift have offered spots on their campuses, he said. Having a local campus would help meet broad de- Donation to fund research mand from metro Detroit, allow the college to in- BY SHERRI BEGIN crease diversity in its pro- CRAIN’S DETROIT BUSINESS INSIDE gram and allow clinical faculty from the Detroit Can Michigan — and by extension, Southeast Michigan Former Chateau Land Develop- area to get more involved ment Co. partner J. Peter Ministrel- in the program, said — find what it takes to compete in a modern economy? li and his wife, Florine, have do- William Stampel, dean of nated stock valued at $15 million to the college. William Beaumont Hospital to fund The college has 800 un- That was the focus of the Detroit Regional Chamber’s cardiac and urological research. dergraduate medical stu- The Royal Oak hospital plans to dents in East Lansing and Mackinac Policy Conference last week. It’s also the announce the gift Thursday. at 23 partner hospitals “The easy part of my life was across the state, 14 of them question Crain’s Detroit Business examines making money,” said Ministrelli, J. Peter and Florine Ministrelli who is in his early 80s. “The hard See This Just In, Page 2 ■ Other donations by the Ministrellis, from several angles in this issue. part is giving money to the right Page 33. people. ■ Applebaum donation funds training Here are the highlights: “I’m so impressed with all of the center, Page M-21. people on the staff who work (at MACKINAC BLOG ATTACK Beaumont) that I want to be a part search under the Ministrelli Pro- While the panelists were ■ The state’s of that operation,” he said. gram for Urology Research & Edu- pontificating, our guest bloggers biotech potential is The bulk of the couple’s gift, $11 cation. were giving crainsdetroit.com million, will fund urological re- See Donation, Page 33 readers some ear-to-the-ground more than just talk, reporting from the Detroit Regional Chamber’s Mackinac but more needs to Policy Conference. be done to achieve Some choice tidbits: it. A special report Michael Brennan on Mackinac $150M Southfield project Island: “It might be the only begins on place in America that a UPS package is delivered by horse.” Michael Long, Velcura Therapeutics Page 13. Mary Kramer on a certain New ■ York Times columnist: “Why Survey says: Michigan’s large-company already drawing buyers does Thomas Friedman hate GM?” culture discourages entrepreneurship and Marcie Brogan on, well, her the region should do more to encourage BY ANJALI FLUKER 11th floor,” said John McCorry, a mission: “Why we come to this CRAIN’S DETROIT BUSINESS professional hunter and owner of conference year after year: To innovation. Page M-1, following Page 18. Tanzania-based Traditional Tanzanian schmooze with our clients. To When John and LeAnne McCorry Safaris. His wife, LeAnne, is presi- decided to buy a top-floor unit in a interface and reinforce how ■ Many things matter, but talent matters dent of Southfield-based Aon Risk much we value them. For new Southfield residential and re- Services Inc. of Michigan. example, at lunch today I most. First step in recruitment? Overhaul tail development, the sales office “We were able to pick up what we offered to pre-chew Roman wasn’t even ready to accept de- how higher ed is funded. Page M-5. thought was the best unit, with the Kulich’s food.” posits. It’s not too late to get a feel for The McCorrys, who bought a best view and the two best parking what conference attendees Full conference coverage begins on Page 23. nearly 1,600-square-foot unit in the spots,” John McCorry said. were talking about. Go to 10 Ten development on 10 Mile Road The McCorrys’ unit is one of www.crainsdetroit.com and Online coverage can be found at crainsdetroit.com and four that had sold before the devel- scroll down to our Mackinac west of Evergreen Road, said they blog center. While you’re there, includes reports from our volunteer bloggers. noticed prices have since gone up. opment’s grand opening Saturday check out our news coverage “We were first in line. … We just and Sunday. The $150 million pro- under “Breaking News.” happened to get the best unit on the ject, which features 368 residential floor, with a northwest view on the See Development, Page 32

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June 5, 2006 CRAIN’S DETROIT BUSINESS Page 1 CRAIN’S NAIC probe ends in referral INDEX

If either the IRS or SEC believe there is reason Senate panel asks IRS, SEC for review for further investigation, “we will be happy to co- operate with them.” BY SHERRI BEGIN Gerber, press secretary for NAIC is pleased the investigation is being re- CRAIN’S DETROIT BUSINESS Grassley, R-Iowa. ferred to “professionals who are responsible for “That may involve some knowing the nonprofit tax law,” said Eric The U.S. Senate Finance Committee last week end- things specific to NAIC or that Vaughn, an independent Washington lobbyist Slowing down: Pulte Corp. ed its two-year investigation into the National Asso- may involve general enforce- hired by NAIC to represent its interests in the in- lowers its earnings ciation of Investors Corp. ment of certain practices by vestigation. “We’re extremely confident that the estimate as orders drop. Page 4. Citing conflicts of interest between its nonprofit NAIC and hundreds of other IRS will review the tax-exempt status of NAIC and and for-profit entities and overcompensation of similarly situated groups,” she find it in excellent compliance.” Walking along: Big Beaver road plan employees, the committee referred its findings to said. NAIC has worked with the SEC on investor edu- encourages foot traffic. the Internal Revenue Service and Securities and Ex- “Unfortunately, some parts cation programs for decades, Vaughn said. “We Page 6. change Commission for further review. Holthaus of the committee’s letter have nothing to hide; these are our friends.” Rebuilding: Southwest The committee wants the IRS and SEC to be demonstrate a continued misunderstanding of The committee’s investigation into NAIC was Solutions takes over aware of committee chairman Sen. Charles Grass- some aspects of NAIC’s operations and finances,” part of a larger review of nonprofit governance housing-loan nonprofit. Page 11. ley’s findings on Madison Heights-based NAIC said NAIC CEO and President Richard Holthaus and reform, Gerber said. “But it’s one of many ex- and to take action or not, as it sees fit, said Jill in a letter on NAIC’s Web site. See NAIC, Page 31 These organizations appear in this week’s Crain’s Detroit Business:

Aastrom Biosciences Inc. . . 14, 16, 34 Ann Arbor Spark ...... 13 Aon Risk Services Inc...... Cover Asimco ...... 27 Asterand plc ...... 13, 16 ASTI Environmental ...... 24 Automation Alley ...... 13 AZD Associates ...... 32 Schoolcraft pushes biotech center Beaumont Hospital ...... Cover, 13 Berry Moorman P.C...... 31 Birchler Arroyo Associates Inc...... 6 biotech education approach based on feedback Blue Cross Blue Shield ...... 23 from local employers, industry groups such as the Burton-Katzman Development Co. . . 6 College plans $12.5M complex in Livonia Chateau Land Development . . . . Cover Michigan Association for Clinical Chesapeake Group Inc...... 6 Engineering and policy direc- Clark Hill plc ...... 31 BY SHERRI BEGIN Those emerging areas in- tives from the state, said Marty Core Technology Alliance ...... 13 CRAIN’S DETROIT BUSINESS clude nanotechnology, foren- Delphi Corp...... 13, 15 BIOTECH Heator, Schoolcraft’s market- sic technology, epidemiology, Detroit Auto Dealers Association . . 28 ing director. Detroit Neigh. Housing Services . . . 11 Schoolcraft College plans to break ground this POTENTIAL genetic science, cellular and A 2004 state report, “Health Detroit Regional Chamber . . . 1, 23-30 fall on a $12.5 million biomedical technology cen- molecular biology and bio- Detroit/Wayne Port Authority . . . . 29 It’s there, but Care Workforce Development ter on its Livonia campus. state needs to do mathematics. Diversified Natural Products . . . . . 17 in Michigan,” predicted a DSA Architects L.L.C...... 34 The state’s capital outlay bill, passed in mid- more to uncover it. The center is expected to in- shortage of more than 50,000 DTE Energy Co...... 25 May, included $5 million of that. Schoolcraft will Special report, clude four laboratories, and Energy Conversion Devices Inc. . . . 33 workers across all health care pay for the rest with private donations and pro- Page 13. 40 classrooms and group dis- Esperion Therapeutics Inc...... 14 related and technical occupa- Focus: Hope ...... 29 cussion areas. Jeffress ceeds from land lease agreements on its campus. tions in Michigan by 2015. George W. Auch Co...... 34 “It’s all about anticipating the future rather Gibbs Planning Group ...... 32 The 48,000-square-foot center, which should be The state’s 21st Century Jobs Fund, a $2 billion completed by fall 2008, will include existing educa- than reacting to the present,” Jeffress said. Great Northern Consulting ...... 32 bond proposal introduced by Gov. Jennifer Grissim Metz Andriese ...... 6 tion programs in areas such as anatomy and physi- “There’s nothing you’re going to be able to do Granholm in May 2005 as a plan for creating thou- Hudson-Webber Foundation ...... 25 John Bailey & Associates ...... 24 ology and new courses in occupational areas “that without a math and science background.” sands of jobs, calls for investing in four technolo- Schoolcraft’s administrators and faculty have Kirco Development Corp...... 6 haven’t yet gotten their legs” but will figure in the Lawrence Tech ...... 15 future job market, President Conway Jeffress said. built the case for the new building and strong See Biotech, Page 34 Live Nation ...... 1 McCann Erickson Worldwide . . . . . 23 MEDC ...... 24 Mich. Health & Hospital Assoc. . . . 26 Mich. Venture Capital Assoc...... 13 MichBio ...... 13, 34 Michigan Biotechnology Institute . . 14 Michigan State University ...... 17 NAIAS ...... 28 NAIC ...... 1 NextEnergy Center ...... 28 Nolan Realty Investments ...... 32 A headline act North Coast Ventures ...... 14 Oakland Community College . . . . . 34 Oakwood Healthcare Inc...... 26 Olympia Entertainment ...... 35 Live Nation works to build regional concert profile Palace Sports ...... 35 Pentastar Aviation ...... 25 Pfizer Inc...... 14, 34 ProQuest Co...... 17 BY BRENT SNAVELY Dave Matthews Band at DTE Energy Music The- Pulte Homes Inc...... 4 CRAIN’S DETROIT BUSINESS atre. QuatRx Pharmaceuticals Inc...... 14 “We are really sort of a behind-the-scenes en- Renaissance Strategies ...... 29 Live Nation Inc., a division of Clear Schoolcraft College ...... 1 tity that does all of the logistical work of pro- Seger-Elvekrog ...... 31 Channel Communications Inc. until last ducing the event and bring- Southwest Solutions ...... 11 December, is about to become more ing quality entertainment to TechTown ...... 28 visible both in Southeast Michigan Traditional Tanzanian Safaris . . . Cover town,” said Dave Clark, vice Troy DDA ...... 6 and across the nation. president of marketing for United Solar Ovonic L.L.C...... 26 Beverly Hills, Calif.-based Live Live Nation’s Farmington University of Michigan ...... 34 Nation (NYSE: LYV) is the na- Velcura Therapeutics Inc...... 15 Hills-based north central di- VetGen ...... 15 tion’s largest concert promoter vision. Wayne State University . . . 14, 16, 25 with about $2.9 billion in 2005 But that low-key mentality Weiss Properties L.L.C...... 6 sales. Its north central division, has changed. By the middle of based in Farmington Hills, is the this month Live Nation will BANKRUPTCIES ...... 6 most influential concert promot- unveil a new Web site that CLASSIFIED ADS...... 20 er in the state. Clark will serve as a hub of enter- DIVIDENDS...... 4 About 30 employees in that of- tainment information and for ticket sales to EARNINGS ...... 4 fice promote shows at about 90 Live Nation venues. KEITH CRAIN ...... 8 venues across the state and Plus, the “Live Nation event” tagline will be LETTERS...... 9 OPINION ...... 8 also oversee the Indianapolis included more frequently on broadcast com- market. OTHER VOICES ...... 9 mercials for events and the logo will be includ- RUMBLINGS...... 36 So whether music fans ed on concert print ads whenever possible, WEEK IN REVIEW ...... 36 know it or not, they will be at- Clark said. Live Nation also plans to staff tending Live Nation events kiosks at its concerts with information about CALENDAR NEWSCOM when they go to shows ranging upcoming Live Nation concerts and events. For a list of current events, visit Dave Matthews Band’s concert at DTE Energy Theatre this summer is among from U.K. rock band Snow Pa- www.crainsdetroit.com. many events promoted by Live Nation Inc. trol at Clutch Cargo’s to the See Live Nation, Page 35 DETROIT BUSINESS MAIN 06-05-06 A 2 CDB 6/2/2006 5:40 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 5, 2006

terms, but the buildings last sold line Industries Inc. leased 225,000 In addition, Trinkle said the resentative for the company. THIS JUST IN in 1998 for $33.5 million. The com- square feet at a Liberty Property company has approval from Ro- — Sheena Harrison plex likely traded for somewhere Trust-owned building in Romulus mulus to build an additional ■ From Cover between $70 and $80 a square foot in an expansion of its local opera- 165,000-square-foot speculative Five from Raymond & Prokop or roughly $36 million to $40 mil- tions. building. Timing for that project in metro Detroit. It had planned lion this time around based on Mundelein, Ill.-based Medline, will depend on leasing, because it land new positions to pick a site for its new campus good condition and healthy occu- which supplies products to hospi- is a build-to-suit project. Five attorneys who were for- by March, “but we got a lot more pancy, said Dennis Dilworth, of- tals, nursing homes and other — Jennette Smith merly partners in Raymond & interest than we thought we fice broker at Colliers International customers, signed a lease for the Prokop P.C. have joined Butzel Long would from colleges and universi- in Southfield. Occupancy is 6505 Cogswell Road building in P.C. and will be based in the ties, hospital systems and county around 80 percent. the Liberty Ecorse Industrial De- Florida company buys Bloomfield Hills office. governments all wanting us to lo- — Jennette Smith velopment. This distribution cen- local Harley dealerships Southfield-based Raymond cate there,” Stampel said. ter will fill more than half of the Prokop is being dissolved and the The city of Pontiac and several 425,000-square-foot building that Fort Myers, Fla.-based Motor- 60-year-old law firm is expected to private developers also have of- Strength Capital acquires was started in the fall on a specu- sports Management Inc. has acquired close its doors this month. fered building leases and proper- Those joining Butzel are: R. Pe- building-products maker lative basis, said Joe Trinkle, American Harley-Davidson/Buell of ties. Stampel has visited 14 poten- vice president and city manager ter Prokop, Robert Schwartz, W. Birmingham-based private-eq- Ann Arbor and Brighton Harley- tial sites. of Malvern, Pa.-based Liberty’s Patrick Dreisig, Sean Cook and Geof- uity firm Strength Capital Partners Davidson/Buell. Terms of the deal He said the university should Michigan region, based in South- frey Gallinger, Butzel Chairman has acquired the Knox, Ind. oper- have a site picked by the end of field. were not disclosed. Philip Kessler said in an an- the summer. ations of Barber & Ross Co. Terms According to CoStar Group, Med- Motorsports Management nouncement. — Sherri Begin of the deal were not disclosed. line has a 140,000-square-foot dis- owns and operates seven other Another Raymond Prokop Winchester, Va.-based Barber & tribution center in Van Buren Harley-Davidson dealerships na- partner, Mark Malven, has joined Ross makes wood and vinyl win- tionwide. The sales took place Dykema Gossett P.L.L.C. as head of Farbman buys office dows, doors and trim products, Township, which it will move out about two weeks ago, and Motor- their technology practice, Dyke- and the Indiana plant generated of and into the Liberty space. complex in Bingham Farms sports took over management of ma chairman and CEO Rex about $20 million in 2005 revenue. Liberty and other developers the dealerships Thursday, ac- Schlaybaugh said. The Bingham Office Center, a The acquisition is the third for have been active in the airport cording to a public-relations rep- — Robert Ankeny complex of three connected build- Strength Capital’s SCP Fund II. area. Liberty’s other transactions ings in Bingham Farms, has been In a statement last week, include the 2005 acquisition of the acquired by Southfield-based Strength Capital said it’s looking Van Buren Commerce Center and CORRECTIONS Farbman Group. to invest in additional window, more than $500,000 in improve- ■ The Crain’s Private 200 list in the May 29 issue contained an incor- Andy Farbman, Farbman co- door and building products com- ments to the two-building pack- president and CEO, said the com- rect figure for the number of employees of No. 84 National Logistics panies with annual revenue of age totaling 400,000 square feet. pany acquired the buildings Management. The correct figure is 198. $15 million to $150 million. The buildings were purchased for which total 522,000 square feet ■ An editorial on Page 8 of the May 29 issue incorrectly stated that a — Sheena Harrison $17.4 million. last Thursday. The four-story In the Liberty Ecorse park, the ballot proposal to guarantee annual increases in education funding buildings were owned by Bingham company recently completed a would be a state constitutional amendment. Center Associates L.L.C., of which Medical supply company moving 25,000-square-foot expansion for ■ A Week in Review item on Page 23 of the May 29 edition should New York City-based Colonnade Plastech Engineered Products Inc., have said that the fee charged limousine operators at Detroit Metro- Properties L.L.C. is a partner. to larger space in Romulus bringing Plastech’s total leased politan Airport has been raised from $3 a trip to $10 a trip, not from $3 a Farbman declined to reveal Medical supply company Med- space there to 275,000 square feet. day to $10 a trip.

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Page 4 CRAIN’S DETROIT BUSINESS June 5, 2006 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Pulte cuts earnings forecast, blames interest rates, slow sales

BY JENNETTE SMITH terest rates, Pulte said. said the company remains positive CRAIN’S DETROIT BUSINESS Analysts said they don’t expect on the long-term conditions for the earnings to rebound in the near industry. Rising interest rates and other term. Pulte’s stock price closed Demand for U.S. housing is flag- factors have halted the national Friday at $31.33, down from a six- ging at the height of what is usual- housing boom, leading Bloomfield month average of $38.69. ly the busiest time of year for real Hills-based Pulte Homes Inc. to cut “We continue to view the hous- estate sales. Home-loan applica- its 2006 earnings forecast. ing sector as unattractive for in- tions fell last week to the lowest April and May new-home orders vestment at this time based on con- level in four years, the Mortgage dropped 29 percent compared to a tinued deterioration in demand Bankers Association said. The aver- year earlier, Pulte said Friday. trends, coupled with meaningful age rate for a 30-year fixed mort- Metro Detroit’s home sales market inventory overhang that seems had already cooled but as recently gage was 6.6 percent last week, a poised to pressure homebuilder four-year high, according to mort- as April other regions of the coun- profits for the foreseeable future,” try had recorded increased sales. gage buyer Freddie Mac. said a Friday research report from Pulte said orders in the first two Pulte earnings will be $4.70 to $5 Raymond James & Associates. a share this months of the quarter fell to 6,477 Stephen East, Susquehanna Finan- year, down from from 9,128 in the same period a cial Group homebuilding analyst, the company’s year earlier. The company expects said Pulte trades at a premium previous fore- to sell 44,000 to 46,000 homes this compared to other homebuilders, cast of $6 to year, compared with 45,630 in 2005. so its stock price is expected to GEOTECHNICAL $6.25, Pulte For the year, Pulte had been ex- come down. East downgraded Pulte (NYSE: PHM) pected to earn $5.59 a share, ac- to a negative rating on Friday. ENVIRONMENTAL said in a state- cording to the average estimate of YOUR DIRT “I don’t see the whole group ex- ment. Pulte 11 analysts surveyed by Thomson panding valuation until the Fed CONSTRUCTION earned $5.68 a Financial. For the second quarter, gets out of the way,” he said. ENGINEERING share in 2005, Dugas Pulte’s Del Webb-branded homes the average estimate of 15 analysts and the decline would be its first for retirement-age buyers are ex- had been $1.09, according to Thom- IS OUR in nine years. pected to perform better than tra- son. Pulte, which hadn’t issued a The No. 1 homebuilder by stock- ditional homes because that seg- forecast for the quarter, said in the market value had been optimistic ment of buyer is less affected by statement it expects to earn 85 about its outlook even as rising job trends and interest rate fluctu- cents to 95 cents a share. OBSESSION mortgage rates ended a five-year The company said it would an- ations, East said. U.S. housing boom. Pulte, which East said he’d like to see Pulte nounce second-quarter results on All of us at G2 share a single-minded obsession with unearthing sells homes in most parts of the July 26. country, on April 26 predicted a continue to pursue new communi- every obstacle and opportunity on your site – from topsoil to bedrock. Shares of Pulte have fallen 16 “soft landing” for the market and ties in the right locations and per- percent this year, compared with So leave the dirty work to us. It’s what we live for. said its per-share net would rise 5 haps shift more decision-making the 22 percent decline by the Stan- percent to 10 percent in 2006. Now, to the local level. While every re- dard & Poor’s Supercomposite profit may fall as much as 17 per- gion in the U.S. is slow; there are Troy, MI: 248.680.0400 Homebuilding Index. cent. pockets of strength in places such Brighton, MI: 810.224.4330 Bloomberg News contributed to “Current demand varies by as Texas and the Carolinas. Chicago, IL: 847.353.8740 this story. market, but overall it continues to Pulte’s other assets include a Jennette Smith: (313) 446-0414, www.g2consultinggroup.com transition after an extended peri- good brand name and extensive od of stronger sales,” Pulte CEO land holdings, East said. Dugas [email protected] Richard Dugas said in the statement. UNEARTHING POSSIBILITIES Pulte reported declines of more than 21 percent in all of its regions STREET TALK in the preliminary data released Friday. The Northeast was the THIS WEEK’S STOCK TOTALS: 47 GAINERS, 27 LOSERS, 7 UNCHANGED weakest, with a 41 percent decline. Orders are falling because of an in- CDB’S TOP PERFORMERS 6/2 5/25 PERCENT crease in homes on the market, CLOSE CLOSE CHANGE more cancellations and rising in- 1. Catuity Inc. $5.57 $4.49 24.05% 2. Saga Communications Inc. 10.34 9.65 7.15 3. Johnson Controls Inc. 89.12 83.36 6.91 4. Energy Conversion Devices Inc. 42.68 40.19 6.20 5. Rofin-Sinar Technologies Inc. 57.77 54.52 5.96 6. Universal Truckload Services Inc. 33.27 31.42 5.89 EARNINGS 7. Rockwell Medical Technologies Inc. 7.04 6.65 5.87 8. North Pointe Holdings Corp. 10.99 10.40 5.67 Borders Group Inc. NYSE: BGP 9. Kelly Services Inc. 28.02 26.65 5.14 1st Quarter April 29 2006 2005 10. ArvinMeritor Inc. 17.35 16.57 4.71 Revenue ...... $860,000,000 $857,300,000 6/2 5/25 PERCENT Net loss ...... ($18,900,000) ($5,300,000) CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE Earnings per share ...... ($.29) ($.07) 1. Champion Enterprises Inc. $11.48 $13.03 -11.90% University Bancorp Inc. Nasdaq: UNIB 2. Pulte Homes Inc. 31.33 33.42 -6.25 1st Quarter March 31 2006 2005 3. General Motors Corp. 26.49 27.90 -5.05 Revenue...... $1,964,037 $1,833,874 4. Caraco Pharmaceutical 10.56 11.08 -4.69 Net income ...... $14,687 $163,865 5. Lear Corp. 23.10 24.04 -3.91 Earnings per share ...... $.00 $.04 6. Origen Financial Inc. 6.37 6.60 -3.49 7. ProQuest Co. 11.72 12.14 -3.46 8. Agree Realty Corp. 30.49 31.58 -3.45 DIVIDENDS 9. Noble International Ltd. 15.55 16.10 -3.42 Company Amount Payable Record 10. American Axle 17.56 18.04 -2.66 date date Source: Bloomberg News. From a list of publicly owned companies with headquarters 2006 2006 in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading at less than $5 are not included. Syntel Inc...... $.06 7-14 6-30 DBpageAD.qxd 5/22/2006 4:09 PM Page 1 DETROIT BUSINESS MAIN 06-05-06 A 6 CDB 6/2/2006 2:58 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS June 5, 2006 Big Beaver Road plan seeks to encourage foot traffic

BY ANJALI FLUKER needed to make the corridor more market analysis. The $130,000 cor- on both ends of the corridor, while or people attending conventions to CRAIN’S DETROIT BUSINESS of a “world-class boulevard,” said ridor study was expected to en- major landscaping, road improve- safely cross over the busy boule- Rodney Arroyo, vice president of hance the city’s first master land- ments and redevelopment could vard, Arroyo said. Large public areas, high-rise Birchler Arroyo. use plan overhaul since the 1970s, take place in the area of the Civic The Chesapeake Group’s market buildings set closer to the road and The DDA soon hopes to execute officials said. Center and Somerset Collection. analysis determined that the corri- “service lanes” parallel to the main some ideas identified in the study, Although the study focused on Parking lots fronting Big Beaver dor has the potential to capture road to encourage foot traffic are said Alan Kiriluk, chairman of the DDA district, suggestions were also could be redeveloped into more than 10,000 residential units among recommendations to en- Troy-based Kirco Development Corp. included for the entire corridor in taller buildings, which could in- in the next 25 years, along with hance the Big Beaver corridor by 650,000 square feet of new retail community-planning consulting and chairman of the Troy DDA. the city. The corridor was divided clude residential, retail, office and The DDA is expected to discuss the into “districts,” which could high- even parking structures, he said. during the next 10 years, Arroyo firm Birchler Arroyo Associates Inc. said. The additional housing also presentation at its June 21 meeting. light areas such as an entertain- The plan also included other fea- Lathrup Village-based Birchler could generate demand for 800,000 Birchler Arroyo’s partners on ment district as a destination, and tures to encourage more of a walk- Arroyo presented its plan Thurs- to 1 million square feet of office the corridor study were North- its state-designated SmartZone to able district. One example was day to the Troy Downtown Develop- and R&D space during the next 10 ville-based landscape architecture attract research and development building a pedestrian bridge over ment Authority. It outlined the re- years, he said. firm Grissim Metz Andriese Associ- facilities. Big Beaver from the Troy Marriott sults of a study done highlighting Once implemented, the plan the existing assets of Big Beaver ates and Baltimore-based Chesa- Traditional residential districts to the Promenade entertainment could generate up to 28,000 new Road and identifying features peake Group Inc., which conducted could remain relatively untouched district, to allow residents, visitors permanent jobs, Arroyo said. Some ideas introduced in this plan already are included in new developments. One is the Monarch, a two-tower, 165-unit condominium project with 10,000 square feet of ground- floor retail space being developed by Palatine, Ill.-based Joseph Freed & Associates and Warrenville, Ill.- based Neumann Homes. Sales on those homes, which are expected to range from $400,000 to $2 mil- #ONGRATULATIONS lion, are expected to begin in late July, said Brian Pritchard, director of residential operations for TOTHE%XECUTIVE-"! Joseph Freed. Burton-Katzman Development Co., which had city approval to develop the 300,000-square-foot Sterling #LASSOF Corporate Center office project, is expected to reformat the develop- 2AGHUNATH2!BBURI -ITCHEL'(ONORE 2-ICHAEL0ETERSON 4HROUGHOUTTHEPASTMONTHS THEFOLLOWING ment into a mixed-use project, said Doug Smith, Troy’s real estate and #HRISTINE,!LANIZ "ENAUD)*ACOB $ALE20ETTIT ORGANIZATIONSHAVESUPPORTEDTHEMEMBERSOFTHE development director. No formal #LASSOF4HE%XECUTIVE-"!EXPERIENCEALLOWS #HRISTOPHER-!LFARO -ICHAEL&*AROUCHE -ARK(2EITZEL plans have been submitted, Smith FORAUNIQUEPARTNERSHIPBETWEENTHE"ROAD3CHOOL said. .IRANJAN!UDIMOOLAM .ICOLE0*OHNSON 2ICHARD22OBINSON Harvey Weiss, partner at West ANDTHENOMINATINGORGANIZATIONS4HISEXPERIENCE Bloomfield Township-based Weiss 3IMON"AROI !NNAMALAI+AILAINATHAN -ICHAEL!2OSNER ENHANCESLEARNING KNOWLEDGESHARING ANDINNOVATION Properties L.L.C., is expanding a re- 4HANKYOUFORYOURCONTINUEDSPONSORSHIP tail center on Crooks Road north of !NTHONY0"EDRICKY 4IMOTHY2+RAUS -ICHAEL*2OWLEY Big Beaver and said the plan has !LEXANDER*"OGOEVICH 7ILSON#,EE .ICOLE03CHULZ -#OMPANY influenced his decision. !LCOA7HEEL0RODUCTS “The new building is designed ,AWRENCE%"ROOKES -ARGARET!,EWIS 3URYA03INGH so that we can have additional sto- !RVIN-ERITOR )NC ries over it and to the west,” said 4AMMY,#APONE +ATHERINE,-ARGOLES 3HAWN,3MITH !TTAINABLE2ESULTS#ONSULTING'ROUP Weiss, who also is a member of the *AMES-#ONLON 2ISHI-EHRA !LLEN-3TARR "ORDERS'ROUP )NC DDA. Weiss added he’s consider- #AMPBELL %WALD!DVERTISING ing a mix of uses for the next stage ,ISA!#URLEY +EVIN$-ITCHELL 3COTT$3TEWART #ARE4ECH3OLUTIONS of his development, which is still in the planning stages. #ATADE6INOS %DWARD+$ALLWEIN 2EINHARD-OEBIUS $ANIEL #ATALIN-4IMOFEI Anjali Fluker: (313) 446-6796, #)"%2 )NC 0ATRICK*$AVISON *R 3TEPHEN--ORAN 'REGORY47EBER [email protected] #ONTINENTAL4EVES )NC ,A6ERNE'%UBANKS %MIL*.UNEZA -ARTHA!7OODS $AIMLER#HRYSLER#ORPORATION #HRISTOPHER3'ODFREY 2ALF/STMANN *AROSLAW-:AHEL %LECTRONIC$ATA3YSTEMS &ORD-OTOR#OMPANY ANKRUPTCIES '%&ANUC!UTOMATION!MERICAS )NC BANKRUPTCIES 7ECONGRATULATETHE#LASSOF THEIRFAMILIES ANDTHEIRNOMINATING 'ENERAL-OTORS#ORPORATION The following businesses filed for ORGANIZATIONSONTHISSIGNIFICANTACCOMPLISHMENT4HESEINDIVIDUALS Chapter 7 or 11 protection in U.S. (OLCIM53 )NC Bankruptcy Court in Detroit May 26- FROMTHESTGRADUATINGCLASSOFTHE%XECUTIVE-"!PROGRAMJOIN )NTELSAT'LOBAL3ERVICE#ORPORATION June 1. Under Chapter 11, a company *ONES,ANG,A3ALLE files for a reorganization plan that the OVER %XECUTIVE-"!ALUMNIOF-35S%LI"ROAD'RADUATE3CHOOL court must approve. Chapter 7 in- +ARMANN4ECHNICAL$EVELOPMENT ,,# OF-ANAGEMENT volves total liquidation. ,EAR#ORPORATION Advanced Fuel Systems Inc., 34900 -ARRIOTT)NTERNATIONAL Forest St., Wayne, voluntary Chapter 4HE%XECUTIVE-"! 7. Assets: $246,963.70; liabilities: -C.ARY!GENCY $764,138.22. 4HE%LI"ROAD'RADUATE3CHOOLOF-ANAGEMENT -ERRILL,YNCH McDonald, McDonald & Co., 7492 Hol- -ETRO0#3-ICHIGAN )NC burn Trail, West Bloomfield Town- -ANAGEMENT%DUCATION#ENTER ship, voluntary Chapter 7. Assets and .3&)NTERNATIONAL liabilities not available. 7EST3QUARE,AKE2OAD 4ROY -) /PTIMAL#!% )NC Jeffrey Cole, DO, P.L.L.C., 6678 0ENTASTAR!VIATION ,,# Jonathon Drive, Troy, voluntary Chapter 7. Assets: $23,729; liabilities: 0ONTIAC3CHOOL$ISTRICT $305,878.24. 6ISITUSATWWWBUSMSUEDUEMBAORCONTACTUSAT 0RICEWATERHOUSE#OOPERS ,,0 Detroit Advantage Academy, 11000 W. 3EARS 2OEBUCKAND#OMPANY McNichols, Suite B9, Detroit, volun- OREMBA BUSMSUEDU tary Chapter 7. Assets and liabilities 3YSTEMSAND0EOPLE )NC not available. 456!MERICA )NC Imperial House, 34701 Groesbeck !CCEPTINGAPPLICATIONSNOWFORTHE%XECUTIVE-"!#LASS 7ASHINGTON%DUCATION!SSOCIATION Highway, Clinton Township, voluntary Chapter 11. Assets and liabilities OFCLASSESBEGIN!UGUST 7ORLD"ANK not available. — Compiled by Katie Maurer DBpageAD.qxd 3/2/2006 12:01 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS June 5, 2006 OPINION Bring talent to state by changing spending ow best to jump-start Michigan’s economy? Michigan Future Inc., a nonprofit Ann Arbor think H tank, has some ideas in a report released this week. (See story, Page M-5.) They could be the right recipe for rebuilding Michigan by giving it a competitive edge to set it apart from other regions in the country. The report’s premise is that Michigan needs to attract and retain talent more than it needs to change tax policy. So it proposes some revolutionary changes in the way higher education is funded. Instead of the Legislature allocating dollars to specific universities, Michigan Future proposes awarding grants or loans directly to students who can use them at any el- igible institution in the state. The report also recommends that state universities work to attract the best and brightest not just from within Michigan but from around the world. Out-of-state students would be eli- gible for loans that could become grants if they stayed to work in Michigan for three to five years after graduation. The report also proposes that the state create a pool of dollars that could be used as local matches for federal research funds, arguing that bringing more research dollars to state LETTERS universities is a better bet than picking “industries of the future” to invest in through special investment funds. The report, which can be found at www.michiganfuture.org, Penske not only key to cleanup has other recommendations, including a recommendation that the single-business tax be replaced by a corporate flat tax. Editor: the elected leaders in Lansing It’s a thoughtful report that deserves a thorough airing by Crain’s Detroit Business I read with interest the article, have missed a “gimme” putt. And, policy-makers in Lansing. welcomes letters to the editor. “Penske, Bing to lead Detroit re- All letters will be considered for they’ve been missing this particu- building,” (May 8), and must say publication, provided they are lar gimme for too many years now. I’m glad that Roger Penske has designed and do not defame Tourism groups and the Michi- cided to stay committed to a bet- individuals or organizations. gan Chamber of Commerce have Our actions speak loudly Write: Editor, Crain’s Detroit provided the governor and Legis- ter, cleaner downtown Detroit. Business, 1155 Gratiot Ave., lature with plenty of information And speaking of talent, the recruitment and retention of Roger Penske did a yeoman’s job Detroit, MI 48207-2997. in how he handled Super Bowl XL. about the state of our industry talent was expected to be a major topic of conversation at the E-mail: [email protected] There’s no doubt in my mind (dead last among states in Message boards: Share your Detroit Regional Chamber’s Mackinac Policy Conference. that with him at the helm of this hotel/motel occupancy and declin- Although the conference has sometimes been described as views in our online community. downtown cleanup effort down- forums.crainsdetroit.com. ing receipts from state parks and a place where good ideas go to die, that is less a fault of the con- town Detroit will shine. As to license fees for hunting, fishing, ference itself than of the resolve of those who attend. Dave Bing and his cleaning up the boating and snowmobiling). We’re hopeful — and we believe not foolishly so — that this neighborhoods, we’ll have to wait We can’t afford not We also know from studies con- and see. I wish him nothing but ducted by the Tourism Resource year might be different. to promote tourism Center at Michigan State Univer- There are a number of efforts underway that have as their success. The people will have to buy into it and have an active role. sity and Longwoods International Editor: goal specific actions instead of reports. Detroit Renaissance and But this can’t be a one-time ef- that for each dollar spent on Your opinion, “Tourism boost- the Detroit Regional Chamber are mounting two of them; both fort. There will have to be con- tourism promotion, enough eco- ers must make the case” (May 1) want to develop specific economic goals that can be acted upon, stant involvement, and there nomic activity is generated to re- skips past the fundamental issue and both want to form coalitions with others to see them through. should also be public service an- turn more than $3 to federal, state regarding proper funding for and local governments. We have often thought that economic rebirth is less a matter nouncements to remind people to tourism promotion. Michigan desperately needs to of grand schemes than an accumulation of completed projects continue to work to keep the neighborhoods clean. By failing to provide Travel create new jobs. Growing our and executed ideas. Let’s hope that the lesson taken away from Thomas Wilson Jr. Michigan with adequate funding tourism industry is pragmatic eco- this year’s conference is to get out there and get something done. Detroit to compete for tourism customers, See Letters, Page 9

KEITH CRAIN: We need everybody for this pit crew

He did it again. few feet by less than sev- there was nothing left volved with a city that owes a willing to do a lot of the heavy lift- Roger Penske’s team and driver en-hundredths of a sec- untouched and nothing great deal to him. It will be great ing, then it will be impossible to won the Indianapolis 500 over ond. And that’s after 500 ignored. fun and there will be a lot of satis- get done what needs to be done. Memorial Day weekend. It was for miles. Last week, for the faction to watch “the Captain” go The Indianapolis 500 is a perfect the 14th time. It was a remarkable 14th time, Roger’s car to work in his city. example of teamwork that paid off. Last January Roger Penske won feat for Penske, some- entered the winners cir- There is plenty to do in this city, That’s what we need in our town. the Super Bowl. one who lives and cle because, as always, and there are plenty of other ladies We’ve got to get Mayor Kwame The events have a lot in com- works in the Detroit he made sure that his and gentlemen that we hope will Kilpatrick and the City Council as mon. area and calls it home. team left nothing un- become part of the city’s team. involved together as any racing Someone once said that the first It was a team effort touched or ignored. But most importantly, we’re go- automobile race was held 10 min- and those of us who We can be proud of ing to have to get Detroiters to help team. It’s going to take a lot of utes after the second car was built. were involved with the the record accomplish- themselves. No one can do all the sweat and some tears, but it can be No one knows who won. Super Bowl knew then ment that Roger Penske work without having the support done. But once again there were mil- and know now that the Super Bowl made at the Brickyard last week. of every resident in our communi- The Indy 500 starts with a parade lions of eyes on the Indianapolis was a team effort as well. But it And Detroit can consider itself ty. They can help, but they can’t do lap and a mile. Our journey in De- 500 as Sam Hornish won in the last had a captain that made sure that proud that he has agreed to stay in- all the work. If the residents aren’t troit should be the same. DETROIT BUSINESS MAIN 06-05-06 A 29 CDB 6/2/2006 3:11 PM Page 1

June 5, 2006 CRAIN’S DETROIT BUSINESS Page 29

2006 Detroit Regional Chamber Mackinac Policy Conference Cobo: Expansion proposal would add tech space to center ■ From Page 28 million and $25 million, Bell said. pen. There’s one reason why it and with their money.” patrick would be willing to cede wireless Oakland County, you just “And Focus: Hope has several can: The future of Michigan de- The Detroit Regional Chamber management of the center to a re- go out and do it. If you say you’re hundreds of thousands of (square) pends on it. And the leadership is was one of the early members of the gional authority “to get a buy-in going to eliminate the SBT, you just feet of unutilized space that can be now in place to move it forward.” coalition, which has not yet been from everybody.” go out and do it. You figure out a used,” Croce said. “The idea of new Bob Thibodeau Jr., co-chairman registered as a legal entity, said Miller made a reference to past way. We’re got to build a bigger bricks and mortar? I’ll have to see of next year’s auto show, said: Charles Chambers, chancellor at opposition by Oakland County Ex- Cobo. Let’s just go out and do it.” the numbers and see if they make “We’re behind what’s happening Lawrence Technological University, one ecutive L. Brooks Patterson to help After the panel, Miller said the sense. Anything that will bring in today. We think by moving for- of four panelists who spoke Thurs- pay for an expanded Cobo. Detroit/Wayne County Port Authority more R&D dollars to the state and ward with this concept, we can day about the Cobo expansion. “Brooks can say, ‘I support an ex- could sell the bonds to finance the expand Cobo is a plus, but I don’t have a 12-month-a-year facility. Derrick Miller, Detroit’s chief panded Cobo but how are we going Cobo expansion. see how these two issues will be We’re looking for a lot of people to information officer and another to pay for it?’ Brooks, I love you, but Tom Henderson: (313) 446-0337, melded together in a single project.” join this coalition, with their ideas panelist, said Mayor Kwame Kil- if you say you’re going to have a [email protected] Others were more upbeat. “As far as something having an impact on the city of Detroit or Southeast Michigan, the future of Cobo Center may be as important as anything we’ll hear about on the island,” Knollenberg said. “It’s an idea to make Cobo Center the hub of the new economy at the same time it keeps the auto show in Detroit. “I represent Novi. We have our - #!2% 4HERIGHTANSWERSFORALLYOURHEALTHPLANNEEDS own expo center. My constituents don’t want to raise taxes. But I’m willing to pay for this study,” said DeRoche, who said he had been against an expanded Cobo. He said a larger convention center didn’t make sense to him because there wouldn’t be enough events each year to justify the cost. But he said this plan is worth pursuing: “It’s one of the brightest ideas I’ve ever seen in a long time, in terms of regional and state coop- eration.” “We organized the process and brought it together to begin to build a coalition,” said Paul Wel- day of the Novi-based Renaissance Strategies consulting firm. He said he was hired by DADA following an editorial by Nolan Finley in The Detroit News in March. “The idea just caught fire,” Wel- day said. “This isn’t Orlando North. This isn’t Las Vegas East. It’s a realistic facility to economi- cally meet our needs. … There are a lot of reasons why this can’t hap-

Chamber adds position to work on small-business issues The Detroit Regional Chamber has expanded its staff by naming a director of small-business initiatives during its annual policy conference at Mackinac Island. Jon Kreger, 31, has been named director of small-business initiatives, a new position. Kreger will work with the chambers’ Small Business Advisory Council in developing solutions to help 7HATSAlVE LETTERWORDFORACOMPANYTHATOFFERSACOMPLETEHEALTHCARESOLUTIONFOR small businesses make money, YOUREMPLOYEES )TS- #!2%/URCOMPLETELINEOFPRODUCTSINCLUDES(-/ 0/3 save money and grow. 00/ ANDOURNEW(EALTH3AVINGS!CCOUNT(3! PLANS )MAGINEmEXIBLEPLANSWITH Also, Kreger will advocate for LESSHASSLEANDLESSPAPERWORK9OUREMPLOYEESWILLHAVEACCESSTOEXTENSIVEPROVIDER other issues of importance raised NETWORKS!NDYOULLHAVEONLYONEPHONECALLTOMAKEFORANSWERSTOALLYOURQUESTIONS by the council including access to 4OlNDOUTWHATMAKES- #!2%THERIGHTANSWERFORYOURCOMPANY TALKTOYOUR capital, reducing health care costs and tax and regulatory reform. AGENT ORCALL- #!2%AT OR 9OUCANALSOEMAILUSAT Kreger had been communica- QUOTES MCAREORGORVISITUSONLINEATMCAREORG tions director with AT&T Michigan, where he handled media relations for the company’s public-affairs - #!2%00/ISAPRODUCTOFTHE-ICHIGAN(EALTH)NSURANCE#OMPANY AWHOLLYOWNEDSUBSIDIARYOF- #!2% initiatives in the state. He also served as the chamber director of grass roots advocacy from Decem- -ORECHOICES/NESOURCE ber 2000 to January 2005. — Andrew Dietderich DETROIT BUSINESS MAIN 06-05-06 A 30 CDB 6/2/2006 5:42 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS June 5, 2006

2006 Detroit Regional Chamber Mackinac Policy Conference :5,1./()5(( /LIHLVXQSUHGLFWDEOH:ULQNOHVKDSSHQ Hertel ready to take $W0DVRQ0F%ULGHZHVPRRWKRXW\RXU LQVXUDQFHDQGILQDQFLDO VWUDWHJLHVZULQNOHV on ‘transit czar’ job ZLWKWDLORUHG BY AMY LANE established, effectively killing the SODQVDQGH[SHUW CAPITOL CORRESPONDENT entity. But area leaders still want to move ahead. FXVWRPHUVHUYLFH MACKINAC ISLAND — When “DARTA is gone, but we’re still John Hertel was 9 years old, his going to go in this direction,” White parents took him and his brothers said on Friday at the Detroit Region- on their last ride on a Detroit street- al Chamber’s Mackinac Policy Confer- 0DVRQ0F%ULGH car. ence. LURQVRXW “It made a very big impression As Southeast Michigan’s “transit on me, that this was leaving,” Her- czar,” Hertel’s salary still is being WKHZULQNOHV tel said. And in subsequent years negotiated, but could be paid out of he watched as mass transit devel- federal grants cleared for DARTA. oped around the country, but not in Hertel said he needs to create a his hometown. regional transportation plan and Now, he has a chance to change will work with groups including De- that. troit Renaissance Inc. and the Detroit The Regional Transit Coordinating Regional Chamber, which have re- Council, made up of Detroit Mayor gional examination and planning Kwame Kilpatrick, initiatives under Wayne County Ex- way. He said he will WWWMASONMCBRIDECOM WWWMASONMCBRIDECAPITALADVISORSCOM ecutive Robert Fi- Nothing’s on look at a host of cano, Oakland funding sources for 3ECURITIESAND!SSET-ANAGEMENT/FFEREDTHROUGH County Executive “ ,INSCO0RIVATE,EDGER,0, -EMBER.!3$3)0# the table, but a system. -ASON -C"RIDE )NCISNOTAFFILIATEDWITH,INSCO0RIVATE,EDGER L. Brooks Patterson “Nothing’s on the and Macomb Coun- everything’s on table, but every- ty Commission thing’s on the 7EST"IG"EAVER2OADs0/"OXs4ROY -ICHIGANs&AX s Chairwoman Nan- the table. table,” Hertel said. cy White, has ” He said his fa- tapped Hertel to John Hertel vorite aspect of the lead the region’s ef- state fair job was to fort on mass transit. bring together various people, pro- “He can bring groups together jects and goals, and he’ll have that and come up with a solution to is- chance again in his transit post. sues. He has the contacts in Lans- Liz Boyd, press secretary to Gov. ing and Washington that he can do Jennifer Granholm, said Hertel has the job,” said White, who chairs the “done a fabulous job” at the fair. transportation council. “He is a She said the governor’s office will consensus-builder.” move as quickly as possible to find Hertel will step down this sum- a replacement. mer from his 12½-year job as gener- Hertel said he first talked to al manager of the Michigan State Fair Granholm about the possibility of to take what he said could be a moving to a transit post last sum- three-year post to research, plan mer with DARTA. He said the de- and seek funding for a metro De- tails of his new position will be fi- troit mass-transit system. nalized in the next two to three The former state lawmaker was weeks, and he’ll start this summer chairman of the Macomb County on his mission to fill metro De- commission when the now-defunct troit’s mass-transit void. Detroit Area Regional Transportation “I think it’s one of the most sig- Authority was conceived. He said nificant things lacking in South- that in DARTA’s recent search for a east Michigan, but one of the quick- CEO, he was the leading choice. est ways we could change in reality The Michigan Supreme Court in and simultaneously change our im- May declined to hear an appeal of a age,” Hertel said. 2005 Michigan Court of Appeals ruling Amy Lane: (517) 371-5355, alane@ that found DARTA was not legally crain.com Detroit offering improvement grants

Detroit’s Office of Neighborhood RFPs and applications for the Commercial Revitalization is seeking programs are available at the proposals from community organi- ONCR office, 65 Cadillac Square, zations to be designated as Suite 2300 in downtown Detroit. “Re$tore Detroit!” and “ReFresh Application materials also are Detroit!” districts. available at www.ci.detroit.mi.us/ Re$tore Detroit! districts may mayor/oncr. receive grants to hire commercial Question-and-answer sessions revitalization professionals, pro- are scheduled June 12 at the ONCR mote and market the commercial office, with a ReFresh Detroit! ses- district and train staff and volun- sion at 9:30 a.m. and a Re$tore De- teers, and for one-to-one façade troit! session at 10:30 a.m. matching grants. Deadline for filing proposals is 4 ReFresh Detroit! districts re- p.m. July 14. To register for the ceive one-to-one matching grants sessions, call the ONCR office at for façade and exterior structure (313) 224-ONCR. rehabilitation. — Robert Ankeny DETROIT BUSINESS MAIN 06-05-06 A 31 CDB 6/2/2006 5:11 PM Page 1

June 5, 2006 CRAIN’S DETROIT BUSINESS Page 31 NAIC: Probe ends in referral to IRS, SEC ■ From Page 1 V>ìV iÝViiVi amples Sen. Grassley has run like a for-profit corporation than a across of a nonprofit blurring the charity,” Grassley said. line between what’s appropriate Meanwhile, Oakland County Pro- for a nonprofit and what is more bate Court Judge Barry Grant has appropriate for a traditional for- ruled NAIC is part of a nonprofit profit business.” charitable trust, and as such it is Grassley’s concerns include subject to the overlapping board members be- court’s jurisdic- tween NAIC’s nonprofit and for- tion. profit entities such as the NAIC Ralph Seger, Growth Fund Inc., overcompensa- 84, chairman tion of employees and an attempt emeritus of to stifle a whistleblower who ques- Bloomfield tioned expenses, Gerber said. Hills-based In a Wednesday letter sent to money-manage- NAIC, Grassley said he appreci- ment firm Seger- ates NAIC’s efforts to institute gov- Seger Elvekrog Inc., ernance and compensation sued the trust in February 2005, changes. “However, it is troubling claiming he was voted off its board that these changes would not have of trustees for questioning, among ->À> >À >À` À>` 6>iÞ -Ì>Ìi 1ÛiÀÃÌÞ Ã «Ài«>À} ÃÌÕìÌÃ i occurred but for the Senate Fi- other things, fees paid to vendors. 6-1 i`V> -ViVi >À ÜÌ ->À> >À >À` Ì Li Ì i iÝÌ }iiÀ>Ì v i>ìÀÃ >` Û>ÌÀÃ° nance Committee’s investigation In a ruling issued last week, ÀÃ iÃÌÀÞ >` 7ÀÌ} of NAIC.” Grant said that Seger had been re- VVi«Ìi` Ì i`V> ÃV Ì½Ã Ì i ` v i>À} iÝ«iÀiVi ÞÕ½` iÝ«iVÌ vÀ > Ã> NAIC was asked by its board of moved from the board appropri- >Ì / i 1ÛiÀÃÌÞ v V }> «ÀÛ>Ìi Vi}i q ÜÌ Ì i «À}À>Ã] v>VÌiÃ] >` ÀiÃÕÀViÃ Þ trustees two years before the com- ately and does not have standing to >Û>>Li vÀ > >À ÕÛiÀÃÌÞ° À Ài vÀ>Ì] VÌ>VÌ ÕÀ ºÌ½Ã VÀi`Li Ì >Ì ÕìÀ}À>`Õ>Ìi mittee’s investigation to update its bring a lawsuit against NAIC or `ÃÃÃ "vvVi >Ì nää® Ç{näÓ{È À ÛÃÌ ÜÜÜ°}ÛÃÕ°i`Õ° corporate governance procedures the trust. ÃÌÕìÌÃ iÀi }iÌ Ì ÜÀ ÜÌ and align them with the Sarbanes- “We’re disappointed, but we’re ÃÕV } Þ ì}Àii` «ÀviÃÃÀÃ° / iÞ Ã«Ài i LiV>ÕÃi Ì iÞ Oxley Act, Vaughn said. The 2002 gratified on the rest of the judge’s Ài>Þ Ûi Ì Ìi>V °» law was enacted to improve the ac- decision,” said Donald Carney Jr., curacy and reliability of corporate a partner at Berry Moorman P.C., disclosures. which represented Seger in the Grassley pointed out other con- case. WWWGVSUEDU cerns in the letter, including As a current trustee, Warren NAIC’s practice of not bidding out Alexander, who joined the case contracts for outsourced services. initially filed by Seger, can still ar- NAIC’s claim that it does not bid gue to enforce the terms of the those out because it requires a trust and question its operation, very high level of expertise and Grant said. service specific to its needs “is “We now have probate court ju- troubling because the majority of risdiction, so the question of NAIC’s initial and founding trustee compensation and what trustees remained active in NAIC they pay their attorneys and oth- after it became tax-exempt, and it ers are all subject to the court,” appears that they rely on long- said Thomas Sweeney, partner at standing relationships for key ser- Clark Hill plc in Detroit, which rep- vices,” Grassley said. resents Alexander in the case. "Astounding" Vaughn said that current law Grant ruled that NAIC and the does not require nonprofits to bid National Association of Invest- out contracts. “What the NAIC is ment Clubs Trust are considered being told by (the committee) and part of the same charitable trust, others is you should do that to whose beneficiaries include its in- make the best use of tax benefit vestment club, individual and cor- dollars,” he said. “We agree com- porate members. But he denied pletely, but you don’t bid out a con- Alexander’s motion that those ben- tract that has been performing eficiaries be entitled to retain sep- well for the organization just to arate counsel at the expense of Thomas V. Byrne save money. If that were required, NAIC, the trust, or both. Operations Manager however, we would do it.” “The proper party to represent Modern Food Management Systems, Inc. When the National Association of the interests of the beneficiaries of Investment Clubs Trust formed in the trust and NAIC is the Michi- 1951, the IRS denied it tax-exempt gan attorney general,” Grant said status but granted it in 1998 to in the court filing. NAIC. Since its primary source of Grant’s ruling on Seger vali- “When we started our business we had Ford trucks. revenue is still from membership dates NAIC’s contention that he We got off to a good start . . . then, we bought the dues, product sales and advertis- was removed from its board prop- competition's trucks. Those trucks weren't designed ing revenue and its activities erly, said John Moscatelli, senior as well as our Ford's were and it was much more haven’t changed since its found- vice president and COO of Marl- ing, “this raises questions about ton, N.J.-based Anne Klein & Associ- difficult to load and unload our vending machines. the IRS’ rationale in granting ates Inc., a public-relations firm Now we're back to Fords. Astounding, the difference. NAIC tax exemption” in 1998, representing NAIC. They're more versatile. Plus, Ford trucks are more Grassley said in the letter. The attorney general’s office is reliable. They last longer and don't break down as often. On the compensation side, reviewing both the judge’s deci- Grassley’s letter said that NAIC sion and the findings of the Senate And, Tom Meagher at Taylor Ford is the best salesmen eliminated Holthaus’ country-club Finance Committee, said Nate Bai- BOLDMOVES membership and automobile lease. ley, a spokesman for the Michigan we've ever had. He takes good care of us. But other directors continue to re- Attorney General’s office. When we need a truck we find Tom." ceive company cars, entertain- “Our folks are looking at it ment expense accounts and mem- closely to determine what the next berships to organizations such as appropriate step is and what role Call Tom Meagher the Detroit Athletic Club. this office should play,” he said. 313-216-1603 “Such benefits indicate that Sherri Begin: (313) 446-1694, NAIC thinks and operates more [email protected] DETROIT BUSINESS MAIN 06-05-06 A 32 CDB 6/2/2006 3:57 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS June 5, 2006 Development: Location draws early interest ■ From Cover units, 80,000 square feet of retail

and open public space, is scheduled to begin construction in July. Rd. reen

Lahser Rd. Lahser 696 erg

The main feature of the project is Telegraph Rd. Ev its two 11-story towers, with retail Rd. Southfield space on the ground floor. 10 Mile Rd. “A great portion of the people are ● interested in this project because of the location,” said Robert Church- 10 Ten development9 Mile Rd. field, project director of Texas- 10 based developer Nolan Realty Invest- ments L.L.C., which is managing and 8 Mile Rd. developing 10 Ten. The project is named for its location on 10 Mile and the Lodge Freeway, or M-10. Southfield William Bowman, a principal of the project and president of Ann Arbor-based Great Northern Consult- tion to start. That is when more re- ing Group Ltd., worked with Nolan tailers will approach them for po- on the project. The architect is AZD tential space and they can “pick Associates in Bloomfield Hills. and choose,” he said. Bowman said the early buyers Bowman said meetings were were a surprise, since he and the held last week with a local restau- developers didn’t plan to sell be- rateur interested in 5,000 square fore last Saturday. After those feet in the first tower, which has sales, the units were repriced, 35,000 square feet of retail space. with premiums being added to cer- The developers also are seeking a tain floors and units, he said, so fine-dining restaurant to occupy some units went down and some an 8,000-square-foot standalone went up. building between the towers. “But we had some people who “Every day, people I talk to are were very insistent about wanting saying, ‘Please build a restaurant to (buy early),” Bowman said. “We there,’ ” Bowman said. “They’re didn’t see it as a bad deal.” begging us to build a restaurant. Bowman said the project’s “And people are scratching biggest draw could be its mix of their heads to do things at night. uses in a centrally located area. We hear from the Westin that they LeAnne McCorry said the lure would love to be able to tell people of a short drive there’s a great restaurant and a to work — her martini bar down the street.” offices are locat- The Southfield area is a vastly ed in the nearby underserved retail market, which Southfield Town means 10 Ten could be incredibly Center — was successful if it’s done correctly, among the rea- said Robert Gibbs, founder of Birm- sons she and her ingham-based Gibbs Planning Group. husband were With a “careful blend” of stores, interested in homes and community uses, the moving from LeAnne McCorry project could draw not only resi- Little Box - Big Returns their home in dents, but retail-seekers from sur- northern Oakland County. rounding communities, Gibbs said. “I love my house, I love the “There’s really no walkable area neighborhood; I’m just tired of the in that region,” Gibbs said. “South- drive,” she said. field is a large city and those resi- The residential aspect also is un- dents are yearning for that. usual, combining the towers in the “But (it) gets down to tiny de- front of the development with tails — where do you park, visibili- shorter buildings set back on the ty from the highway, and when 24-acre property for those not inter- people walk from the parking lot to ested in the high-rise lifestyle, the restaurant, do they walk by Bowman said. The four short resi- shops or blank walls, and are they dential buildings flank a 14,000- open at night? … I’m glad to see square-foot, two-story clubhouse, they’re working on it. It’s a good he said. direction to go in.” “We realized there was a big Prices on the homes — which de- market if we did something inter- velopers are calling “lofts” and esting,” Bowman said. “The city, at “penthouses” — range from the the same time, said it wanted to see low $200,000s to the low $600,000s a really neat urban village, which for each of the 108 individual resi- is unusual, because you don’t usu- Restaurants don’t have to be big to be a big deal. Our 800 square foot modular buildings require just half an dential units in the first high-rise. ally find a lot of cities that say they acre for success. And acres can be expensive. Small buildings are easy to operate. And drive-thru is our Buyers also can combine units, life. No empty dining rooms here. Just two lanes with lots of cars. The perfect business model for today’s want more density. The city of busy consumer and franchise owner. Bowman said. Southfield embraced the idea of Sales on residential units in the density to get a neater project.” Oh, and if you haven’t heard, Checkers® and Rally’s® is Hot Again.* And is America’s Best Drive-thru.** And second tower and the other resi- When first introduced more than is the Official Burger of NASCAR®. And has an award-winning management team.*** So, you should check dential units should begin once two years ago, the project was sig- out our little box. And see if becoming a Checkers/Rally’s franchisee is right for you. building permits are secured, nificantly smaller, with about 160 Churchfield said. The entire pro- condos, a small amount of retail ject should be built in five years, space and a price tag of about $35 depending on sales, he said. million. By buying up surrounding The towers fronting 10 Mile land and buildings, the project Road are expected to include ser- grew to its 24-acre size today, Bow- OFFICIAL DRIVE-THRU vice-oriented retailers on the first man said. The last property acqui- floor, such as a deli, dry cleaner sition was the Capital Mortgage Call our Franchising Department at 888-913-9135 or visit our web site at and florist. building on 10 Mile, which closed www.checkers.com to learn more. Churchfield said there has been last September, he said. ©2006 Checkers Drive-In Restaurants, Inc. NASCAR® is a registered trademark of the National Association of Stock Car Auto Racing, Inc. *Checkers named “Hot Again” by Nation’s Restaurant News, May 2005. **Rally’s named “Best Drive-thru in America” by QSR Magazine, October 2005. ***American Business Awards 2004 and 2005. a lot of interest in retail space, but Anjali Fluker: (313) 446-6796, they’re holding off for construc- [email protected] DETROIT BUSINESS MAIN 06-05-06 A 33 CDB 6/2/2006 2:51 PM Page 1

June 5, 2006 CRAIN’S DETROIT BUSINESS Page 33

Donation: Couple gives $15M to Beaumont A HISTORY OF GIVING Other major gifts from J. Peter and ■ From Cover Florine Ministrelli: For the past 10 years, the Min- nate the need for more costly, inva- er facial deformities. he now deals in luxury home con- 2004: $500,000 to Cornerstone istrellis have helped pay for a sive and potentially risky medical “If they continue to make struction through several compa- Schools in Detroit Beaumont program to educate procedures. The new cardiac re- progress and achieve what they nies: Ministrelli Development Co., 2002: $5 million to St. Mary’s physicians from foreign countries search donation follows a $5 mil- have in the past in the future, Ministrelli-Painted Cove Inc. and Min- Church for the Benedictine Order for in urological diagnosis and treat- lion gift in 2001 from the Ministrel- there’ll be more donations on my istrelli Construction Co. Inc. the Cloister Nuns, Massachusetts ments. The Ministrellis were “so lis for the Florine and J. Peter part,” Ministrelli said. A native Detroiter, Ministrelli 2002: $2 million to the impressed with the humanitarian Ministrelli Women’s Heart Center Ministrelli and his partners ex- also retains a home in West Bloom- Intermediate Jesuit School in Palm panded Chateau Land Develop- Springs, Calif. impact of their gift that they of- and an endowed chair in cardiolo- field Township and continues to ment, a private Clinton Township- fered more funding to further the gy at Beaumont. conduct business in the state. 2001: $5 million to William work,” said Ananias Diokno, based developer and manager of Beaumont Hospital in Royal Oak to The couple’s earliest donations Ministrelli said he leases out in- chairman of the department of manufactured-housing communi- establish the Ministrelli Women’s to the hospital date to the early dustrial buildings in Troy and is urology at Beaumont. ties, to 36 states through multiple Heart Center. 1990s, when they began helping negotiating the purchase of almost Their most recent donation will mergers before taking it public in 2001: $5 million to the pay to send a team of doctors to 600 acres in Mt. Pleasant for con- allow the hospital to bring in fel- 1993. Archdiocese of Detroit to help fund lows from developing countries South America to perform facial He sold his interest in the late struction of two golf courses. the Pope John Paul II Cultural and train them in advanced uro- reconstructive surgeries for chil- 1990s and bought a second home Sherri Begin: (313) 446-1694, Center in Washington. logical care so they can take that dren born with cleft palates or oth- near Palm Springs, Calif., where [email protected] expertise back to their home countries, he said. The money also will support and expand research in general urological health, women’s urological health and men’s related health issues such as prostate cancer research and treatment by helping to fund supportive research fellows 7ORKINGTOGETHER and other staff, experts from other countries and the purchase of advanced technologies for research purposes. MAGNIFIESTHEIMPACT Beaumont has done urological research with National Institutes of Health grants for more than a decade, said Margaret Cooney ANDVALUEOFINDIVIDUAL Casey, president of the Beaumont Foundation. “Because we have a national reputation in this kind of re- IDEASANDEFFORTS search we continue to get grants and gifts like Peter’s.” Another $4 million will fund the Ministrelli Advanced Cardiac Re- search Imaging Center.The center will be one of only a few in the country to conduct advanced research in magnetic resonance imaging and computerized tomog- raphy of the heart. The center will conduct digital scanning of the heart in order to complete nonin- vasive diagnosis of heart conditions, Casey said. The research should yield faster and more precise diagnoses of heart diseases and reduce or elimi-

Energy Conversion Devices licenses battery to China-based company Rochester Hills-based Energy Conversion Devices Inc. entered into an agreement May 25 to license its nickel metal hydride battery tech- 7HENYOURESERIOUSABOUTINTELLECTUALPROPERTYLAW nology to a China-based company. Energy Conversion Devices (Nasdaq: ENER) said the patent license agreement was signed with !S ONE OF THE LARGEST FIRMS IN THE 5NITED L&K Battery Technology Co. Ltd. Under terms, L&K Battery has a 3TATESDEDICATEDEXCLUSIVELYTOINTELLECTUAL royalty-bearing, nonexclusive PROPERTY "RINKSHASGROWNANDEVOLVEDWITH right to make, use and sell nickel metal hydride batters for con- THECOMPANIESANDTECHNOLOGIESTHATSHAPE sumer nonpropulsion applications. Length and financial details THEWAYWELIVEANDWORK7ITHATTORNEYS weren’t disclosed. MOSTWITHTECHNICALORSCIENTIFICDEGREES "RINKS L&K was founded in 2000. Its fac- tory is located in Guandong HASTHEINSIGHTANDSKILLTOPARTNERWITHYOUR province. The company produces COMPANYONITSNEXTGENERATIONOF INTELLECTUAL batteries of multiple chemistries and manufactures a variety of PROPERTYCHALLENGES USEBRINKSCOM nickel metal hydride batteries for portable electronic devices. — Andrew Dietderich DETROIT BUSINESS MAIN 06-05-06 A 34 CDB 6/2/2006 1:41 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS June 5, 2006 Schoolcraft: $12.5M Livonia building to be biomedical center ■ From Page 1 gies: life sciences, alternative en- ring to a four-year school, he said. … and four-year schools with par- from the building’s roof and filter ergy, advanced technology, and ABOUT SCHOOLCRAFT’SPLAN “Those programs, especially sci- ticular interests,” Jeffress said. it back into the soil to nurture homeland security and defense. ence, are really running out of “It’s all about branding — like plants. DSA Architects L.L.C. in What it is: A 48,000-square-foot “The new building will enable room to grow,” Heator said. “If any other corporation, you are Berkley is the project’s architect, biomedical education center. Schoolcraft to respond to the de- we’re going to enroll more people concerned about how people per- and George W. Auch Co. in Pontiac What it will house: Existing mand for health care workers and ceive your quality.” will be construction manager. education programs in areas such in those areas, we’re going to need Like the programs it will house, Oakland Community College also to educate people to work in the as anatomy and physiology and more space.” life-science field,” Heator said. new courses in occupational areas The new center will allow the new, “green” center is likely to sees opportunity in the biomedical The number of students enrolled that will figure in the future job Schoolcraft to accommodate an- attract interest from some poten- field. It recently modernized all of in credit programs at Schoolcraft market. Possibilities include other 3,500 students in math and tial students, Heator said. As a the labs on its Farmington Hills has increased from 13,788 in 2000- nanotechnology, forensic science courses and certificate or condition for state-funding, it campus and added a classroom at a 01 to 15,568 in 2004-05, he said. technology, epidemiology, genetic degree programs. must attain a Leadership in Ener- cost of $5.9 million to launch a About a fifth of those students science, cellular and molecular “When you start thinking strategy and Environmental Design cer- biotechnology degree program as already are in math and science biology and biomathematics. gically about your enrollment, tification for green buildings. early as fall 2007, said George Cart- certificate or associate’s degree Price tag: $12.5 million. then you want to shape that so that Such features will include exterior sonis, communications director. programs, or taking courses in Estimated completion: Fall 2008. the programs you have at the col- sun shades to cool the building and The college plans to hire a faculty those areas to prepare for transfer- lege attract students … employers a rain garden to capture water member to assist in teaching the program. The college is still completing a job-market analysis for biomedical technician careers but already it has concluded there is a huge market for them in Washtenaw Coun- Oakland Community College ty, he said. Pfizer Inc. and Aastrom Biosciences Inc.are among the local Get ANYWHERE from here... employers that will be looking for technicians, Cartsonis said. Job opportunities for technicians at the University of Michigan also continue to grow, said Karl Bates, U-M’s director of life sciences communications. Take a look at the many ways In the last five years, U-M has added more than 1 million square OCC can help you reach your educational goals... feet of lab space for biomedical research at its Ann Arbor campus. N Transfer programs in business, liberal arts and science that will transfer to the university of “For every person who holds a your choice. doctorate in biotechnology, you need nine technicians to support N Career degrees and certificates that prepare you for immediate employment in 130 fields, their work,” Cartsonis said. including advanced technologies and high-demand health professions. OCC’s degree would qualify N holders as technicians in fields Thousands of classes from which to choose each semester. such as biopharmaceuticals, envi- N Five convenient campuses throughout Oakland County – Auburn Hills, Farmington Hills, ronmental monitoring, ecology and molecular imaging. Royal Oak, Southfield and Waterford. OCC’s projection for the number N Small classes, highly qualified faculty. of technical support jobs in the biotech industry may be a little N Affordable tuition – one-third to one-half of what you pay at public universities. high, said Stephen Rapundalo, interim executive director of Mich- Bio, the state’s life-science trade as- For further information call 248.341.2200 sociation. or visit our Website at www.oaklandcc.edu Rapundalo, who spent 25 years as a research scientist before becoming an Ann Arbor City Council member and taking the MichBio position, believes each doctorate- holding researcher likely creates about four to six technical support positions. “I think there’s a real strong de- sire on the parts of large companies like Pfizer and smaller biotech companies to have a reliable and sustainable skilled workforce,” he said. When faced with the need to cut its Ann Arbor workforce, Pfizer has focused on its advanced scien- tists or the uppermost ranks of its employees, he said. “What they really wanted to keep was the lower- level technical staff, and they continue to look to fill those positions.” Rapundalo said he is beginning to see other signs of increased demand for technical support employees, but he expects much greater demand in the years to come as the number of related businesses increase in Washtenaw and Oakland counties and the OCC is an affirmative action/equal opportunity institution. Grand Rapids area. Sherri Begin: (313) 446-1694, [email protected] DETROIT BUSINESS MAIN 06-05-06 A 35 CDB 6/2/2006 11:39 AM Page 1

June 5, 2006 CRAIN’S DETROIT BUSINESS Page 35

Live Nation: Promoter builds regional profile www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] The goal is to create a brand as political debates and corporate ASSOCIATE PUBLISHER Christopher Crain, identity that signifies quality en- events. (313) 446-1645 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- tertainment so that people unfa- “Concerts are really only about 0460 or [email protected] miliar with a particular band will a third of our revenue stream,” MANAGING EDITOR Jeff Karoub, (313) 446- 0402 or [email protected] have faith that the event is worth Nieporte said. “Live Nation hav- ASSISTANT MANAGING EDITOR Michael Lee, attending based on Live Nation’s ing a monopoly on it does make it (313) 446-0416 or [email protected] SPECIAL SECTIONS EDITOR Shawn Selby, (313) involvement, Clark said. more difficult. But we are basical- 446-1654 or [email protected] Locally, Live Nation was forged ly still getting shows.” GRAPHICS EDITOR Nancy Clark, (313) 446- when SFX Entertainment Inc. ac- In most major markets Live Na- 1608 or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 quired Cellar Door Productions in tion has even more clout than it or [email protected] 1998, Ritual Inc. and Prism Produc- does in Southeast Michigan be- DATA EDITOR Anne Marks, (313) 446-0418 or tions Inc. in 2000 and Cleveland- [email protected] cause the company also owns or WEB EDITOR Dan Eizans, (313) 446-0473 or based Belkin Productions in 2001. operates about 119 venues, includ- [email protected] SFX Entertainment, meanwhile, ing 37 amphitheaters. WEB DESIGNER/PRODUCER Eileen Huang, (313) 446-0403, [email protected] was bought by San Antonio-based But in Detroit, DTE Energy Mu- EDITORIAL SUPPORT Anita Duncan, (313) Clear Channel in 2000. sic Theatre is the top-grossing con- 446-0329; Joanne Scharich, (313) 446-0419 NEWSROOM (313) 446-0329, FAX (313) 446- Through the purchase of Ritual, cert venue, and it is owned by 1687 TIP LINE (313) 446-6766 the company also became the own- Auburn Hills-based Palace Sports REPORTERS er of St. Andrews Hall in Detroit and and Entertainment. Robert Ankeny: Covers the city of Detroit, Wayne Clutch Cargo’s in Pontiac, al- In fact, DTE Energy has been the County government, and law. (313) 446-0404 or though Clutch Cargo’s was later most-attended amphitheater for 15 [email protected]. Sherri Begin: Covers nonprofits and education. sold. Also, about three years ago, consecutive years and was listed (313) 446-1694 or [email protected] Live Nation became the tenant and Last year’s 89X Birthday Bash drew more than 10,000 people. as the fourth-highest drawing con- Andrew Dietderich: Covers innovation and workforce. (313) 446-0315 or operator of the State Theatre. cert venue in the world of any type [email protected]. Although the name of the com- in 2005, according to the year-end Anjali Fluker: Covers Macomb and Oakland DETROIT ROCKS ON counties, services and environment. (313) 446- pany has changed often, Live Na- lists of Pollstar magazine, an en- 6796 or [email protected]. tion has been led by the same local Live Nation is looking for creative ways to produce fun concerts and tertainment trade publication. Sheena Harrison: Covers small business, retail festivals. The following are two examples. and nonautomotive manufacturing. (313) 446- group for years. That includes Jeff Corey, director of public re- 0325 or [email protected]. Clark; Rick Franks, president of lations for Palace Sports, said the Tom Henderson: Covers banking, finance and 89X Birthday Bash technology. (313) 446-0337 or the division; and Perry LaVoisne, consolidation of the concert pro- [email protected]. vice president of booking. motion industry has benefits. Michelle Martinez: Covers health care, What: Last year’s 89X event was held in downtown Detroit between the transportation and international business. (313) But as a part of Clear Channel “It’s a good thing because it is 446-1622 or [email protected]. State Theatre, which is operated by Live Nation, and the Fox Theatre, for the less-profitable entertainment the same people but they have a Jennette Smith: Covers real estate and the first time. It drew more than 10,000. Live Nation’s visibility at this event hospitality. (313) 446-0414 or division took a back seat to Clear national scope now, whereas these [email protected]. will be muted because its primary purpose is to promote 89X, whose call Brent Snavely: Covers auto suppliers, steel and Channel’s radio and television di- letters are CIMX FM. people, when we worked with restaurants and entertainment. (313) 446-0405 visions. In addition to booking them before, it was regional,” or [email protected]. Partner: Olympia Entertainment Inc. concerts, Live Nation also pro- Corey said. LANSING BUREAU When: June 18. Amy Lane: Covers business issues at the motes theatrical productions and Even so, Corey said Palace Capitol, telecommunications and utilities. (517) Who: 10 bands on 3 stages. Sports books and promotes about 371-5355, FAX (517) 371-2492, motor sports events. [email protected]. or 115 W. Allegan, Suite 220, Gary Bongiovanni, editor in 30 percent of the concerts at The Lansing 48933. chief of trade publication Pollstar, Vans Warped Tour Palace and about 65 percent of its ADVERTISING in a year-end report on the concert What: A high-profile, daylong national festival that drew about 30,000 last own events at its outdoor venues, ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] industry, wrote: “The world’s year to the Pontiac Silverdome. The city of Detroit is allowing Olympia and and also works with other concert promoters, such as AEG Live. SALES INQUIRIES: (313) 446-6052; FAX (313) biggest concert promoter can now Live Nation to close Woodward Avenue from just north of the Hockeytown 393-0997 Despite Live Nation’s size, suc- sharpen its focus and function Café south to Elizabeth Street to accommodate four outdoor stages. NEW BUSINESS DEVELOPMENT MANAGER without the baggage of being tied When: July 29 cess in today’s concert environ- Cathy Ross, (313) 446-0307, [email protected] to the world’s largest radio station ment is far from a sure thing, ac- ADVERTISING SALES Jeff Anderson, Terri Who: About three dozen cutting-edge bands and musicians. Engstrom, Matthew J. Langan, Shawn owner.” cording to industry veterans. McCracken, Tamara Rokowski, Dale Smolinski Bongiovanni believes Live Na- That’s because even as revenue WESTERN ACCOUNTS Ellen Mazen (Los Hodgman & Giarmarco. Novak is Nation are teaming up to host a Angeles) (323) 370-2477 tion’s size and clout and its re- from concerts in North America CLASSIFIED MANAGER Melissa McKay, (313) newed attention to providing val- also the former general counsel for daylong concert for alternative continues to rise, the increase is 446-1692 the now-defunct Brass Ring Produc- rock radio station CIMX 88.7 FM, CLASSIFIED ACCOUNT EXECUTIVE Rebekah ue to concertgoers is actually due to higher ticket prices. Total Cook, (313) 446-1655 helping to bring down concert tick- tions Ltd., which once held an ex- commonly known as 89X FM, attendance is declining, according MARKETING DIRECTOR Mary Ann Short et prices after nearly 15 years of in- clusive promotion and booking called the 89X Birthday Bash on to Pollstar, and profit margins are MARKETING ASSISTANT Jennifer Dunn dustry-wide price increases. contract at the Fox. June 18. Plus, on July 29, the two typically about 3 percent, accord- MARKETING ARTIST Sylvia Kolaski companies will produce another SALES SUPPORT Suzanne Janik, Andrea Indeed, Clark said there are a For many local venue owners, ing to Novak. Beckham, YahNica Crawford number of concerts at DTE Energy such as Detroit-based Olympia En- daylong festival called Vans Warped Typically, the CIRCULATION Candice Yopp, Manager. Music this year offering lawn seats tertainment Inc., Live Nation is both Tour. Both events will take place in promoter pays PRODUCTION MANAGER Wendy Kobylarz downtown Detroit between the PRODUCTION SUPERVISOR Larry Williams, for $10 or $20. a partner and, in a sense, a com- guarantees, or (313) 446-0301 For its part, Live Nation is look- petitor. Fox Theatre and the State Theatre. up-front fees, to SUBSCRIPTIONS (313) 446-0450, Olympia Entertainment, which While Olympia works closely (888) 909-9111 ing to boost its own profits by ex- bands based on TO FIND A DATE A STORY WAS PUBLISHED: panding into additional revenue is part of Ilitch Holdings Inc., owns with Live Nation, a few others, expected ticket (313) 446-0367 or e-mail the Crain Information Center at [email protected]. lines, such as sponsorship dollars, or operates the Fox Theatre, Joe such as the Emerald Theatre in Mt. sales. If fewer Clemens, do not. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY food and beverage sales, merchan- Louis Arena, Comerica Park, Cobo Are- than the antici- CRAIN COMMUNICATIONS INC. dise and digital programming. na, City Theatre and operates the Joe Nieporte, co-owner of the pated amount of CHAIRMAN Keith E. Crain PRESIDENT Rance Crain Live Nation reported a $130.1 concert business for the Masonic Emerald, worked at the State The- Daiza tickets are sold, atre from 1994-2000 and booked the promoter SECRETARY Merrilee Crain million loss for 2005, but rebound- Temple Theatre. Olympia competes TREASURER Mary Kay Crain ed in the first quarter of this year with other venues to which Live shows through Cellar Door. So, may lose money on the show. Executive Vice President/Operations with net income of $1.1 million. Nation offers concerts and events when he and partners purchased “I used to be a promoter. I would William A. Morrow Group Vice President/Technology, One example: Live Nation an- and also controls some of the same the Emerald he thought he could never get into the promotion busi- Manufacturing, Circulation nounced a deal in January with revenue streams, such as parking, use his relationships with Cellar ness today because to get into the Robert C. Adams Vice President/Production & Manufacturing rock band Korn and record label food and beverages, that Live Na- Door to book talent. promotion business you need a na- Dave Kamis EMI Group plc. In return for invest- tion is aiming for. But then Cellar Door was pur- tional strategy,” said Amir Daiza, Corporate Director/Circulation chased by SFX and SFX saw the former owner of Ritual. Patrick Sheposh ing a reported $3 million, Live Na- “We do book some shows of our G.D. Crain Jr. Founder (1885-1973) tion will get 6 percent of the band’s own,” said Sarah Gladfelter, direc- Emerald as a competitor with St. While Daiza repurchased Clutch Mrs. G.D. Crain Jr. Chairman (1911-1996) box office, licensing, publishing, tor of booking Andrews. Cargo’s last year and promotes a EDITORIAL & BUSINESS OFFICES: “It was, in their words, a conflict few of the venue’s concerts on his 1155 Gratiot Ave., Detroit MI 48207-2732; merchandise for Olympia. (313) 446-6000 and CD sales ac- “We need to of interest,” Nieporte said. “So I own, he speaks highly of both Live Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out cording to trade work with had to do it by myself, which I did, Nation’s local management team of state, $79 one year, $138 for two years. and I did it with some success, but and its new national strategy. Outside U.S.A., add $48 per year to out-of-state publication Bill- everybody in rate for surface mail. board. the market to then it grew to be more difficult.” “It was good that they broke Reprints: For inquiries call the reprints Today, Nieporte still books some away from Clear Channel because department at: (800) 494-9051, Ext. 144 , or at “My observa- keep our busi- [email protected] of his own shows but primarily they have their own agenda now,” tion on the ness success- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 whole rebrand- ful.” books shows through Live Na- Daiza said. “They understand is published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. ing is it’s intend- Gladfelter de- tion’s largest competitor, Los An- what they need to do to work into Periodicals postage paid at Detroit, MI and geles-based AEG Live, which is a this market. The thing is … they additional mailing offices. POSTMASTER: Send ed to reinvigo- Gladfelter clined to esti- address changes to CRAIN’S DETROIT BUSINESS, Novak rate the concert mate how many wholly owned subsidiary of The An- want everybody to be successful, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in market and ... they are doing a lot shows Olympia books and pro- schutz Corp. because it is going to help them in U.S.A. motes without Live Nation. In addition to about 24 concerts the long run.” Entire contents copyright 2006 by Crain of innovative things,” said Mike Communications Inc. All rights reserved. Novak, entertainment attorney This summer, for the second a year, the Emerald also is a night- Brent Snavely: (313) 446-0405; Reproduction or use of editorial content in any and member of Troy-based Cox, year in a row, Olympia and Live club and hosts other events such [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 06-05-06 A 36 CDB 6/2/2006 5:59 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS June 5, 2006 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 27-JUNE 2

The makeover show fea- who became president and purportedly for poor sales tures cars considered Toyota Center CEO in April 2005. results, after the sales staff Big 5 talk trash junkers that are picked off ■ Terry Huch to director of voted 10-5 to unionize May the SoCal streets and are investor relations, ArvinMer- 17, the Detroit Free Press re- overhauled into customized to start York itor Inc., Troy, from manag- ported. vehicles. er of international investor ■ The University of Michi- and taxes at This year’s season fea- relations, Ford Motor Co., gan has been awarded a tures the transformation of Twp. building in Dearborn. Huch replaces four-year, $1.5 million grant 16 vehicles. The first episode Ken Andrysiak, who is now from Maryland-based of the show’s new season is director of capital markets. Howard Hughes Medical Insti- Mackinac confab set to air 10 p.m. June 15. December ■ Douglas Grimm to vice tute to develop innovative president and general man- methods of teaching biolo- onstruction on a new ager, Ford North America gy to undergraduates. rea political leaders dustries Inc. hopes to inspire Michigan’s little Sweden? Toyota Motor Corp. re- customer business group, ■ Delphi Corp. reported jousted Friday on loyalty for domestic au- C search and develop- Ikea rolled out the Visteon Corp., Troy, from losses of $192 million in A Mackinac Island on tomakers by offering its em- ment center in York Town- salmon, meatballs and vice president of commer- April, up from $56 million trash, taxes and the upcom- ployees $1,000 toward the ship is slated to begin in Poäng chairs for the media cial operations, Metaldyne in March. The Troy-based ing governor’s race. down payment on new Gen- December, a company exec- last week during a tour of Corp., Plymouth. He as- auto supplier, in bankrupt- On the latter, Oakland eral Motors Corp. vehicles. utive said Thursday. County Executive L. Brooks The company makes au- its Canton Township store, Toyota Technical Center USA sumes those duties from cy since Oct. 8, blamed the John Kill, senior vice presi- mounting losses on reduced Patterson said the state “is a tomated robotic equipment which opens Wednesday. Inc. has received several $40 billion business” that for car assembly and other The 311,000-square-foot dent and president, North sales to General Motors Corp. bids to demolish the former ■ needs the guiding hand of a production automation, and blue and yellow store fea- Ypsilanti Psychiatric Hospital America customer group, U.S. District Judge businessperson, referring began offering the incentive tures Ikea staples such as which sits on the site, and who has been handling Arthur Tarnow set a hear- to Republican west Michi- two weeks ago to its staff of model homes and furnish- them on an interim basis. ing for today to consider a the company expects to se- ■ gan businessman Dick De- about 70. The offer applies ings for small businesses. A lect a contractor for the pro- Revathy Ashok stepped request from 40 small lim- Vos. But Detroit Mayor to all new GM purchases or model bookstore is even ject in the next few weeks, down Thursday as CFO of ousine companies for a tem- Kwame Kilpatrick, in support leases through Dec. 31, decorated with stacks of the Senior Executive Adminis- Troy-based Syntel Inc., porary restraining order to of Gov. Jennifer Granholm, President Arno Rabin said. novel Seabiscuit, Swedish- trator Bruce Brownlee said. which specializes in infor- suspend the Wayne County said running the state re- “GM is one of our prima- language edition. Demolition and remedia- mation-technology out- Airport Authority’s new policy quires more intricate work. ry customers here, so we The Canton Township tion of the 690-acre site is sourcing. Arvind Godbole, that prohibits them from “This is not a startup want to do things to promote store marks Ikea’s 28th in expected to last through De- corporate controller, has leaving their vehicles to business,” Kilpatrick said. business activity for GM,” the U.S. and the first in cember. Toyota expects assumed CFO responsibili- pickup passengers at Detroit Kilpatrick and Patterson said Rabin, whose company Michigan. Its restaurant construction of the $150 ties. A global search has be- Metro Airport. The policy, were among the “Big Five” had sales of $17 million to seats 300 and the store also million, 400,000-square-foot gun for a CFO replacement. adopted by airport manage- ■ panel at the Detroit Regional $20 million last year. has a supervised children’s technical center to be com- Marina Williams to chief ment last month, also hikes Lear Corp. Chamber’s Mackinac Policy So far, about six employ- play area. plete by summer or fall diversity officer, , the fee Metro collects from Conference. Other panel ees have taken the offer. 2008, Brownlee said. Southfield, from platform limo operators from $3 per members were Wayne The Michigan Economic manager for the Chevy trip to $10 per trip. Lamborghinis on tap HHR integration program. ■ Providence, R.I.-based County Executive Robert Fi- Matrix System lands prime Growth Authority approved a cano, Macomb County Com- Local car buyers in the $5 million single-business- She assumes duties former- Textron Inc. (NYSE: TXT) an- mission Chair Nancy White MTV customizing gig market for a new Lam- tax credit in May for the ly performed by Jim Com- nounced plans Thursday to and Windsor Mayor Eddie project, which will be used er, former president of sell its Troy-based fasten- Matrix System Automotive borghini Murcielago no Francis. for the demolition and re- North American Joint Ven- ing systems division to Plat- Finishes Inc. of Walled Lake longer have to travel out of Democrats cited con- mediation. The state had tures and Diversity, who re- inum Equity, a Los Angeles- has been busy helping MTV state for their dream car. cerns over potential rev- previously approved an in- tired from Lear last year to based investment firm, for trick out rides in Southern Italian carmaker Automo- enue loss and the elimina- centive package of more establish Comer Holdings $630 million in cash. California. bili Lamborghini opened Lam- ■ tion of tax credits as than $38.9 million to secure L.L.C., a certified minority Pall Corp., which filters, The local manufacturer borghini Troy at the Suburban politicians debate a replace- the expansion, which is ex- business enterprise. separates and purifies fluids and distributor of automo- Collection on Wednesday. pected to create 400 jobs. for life-sciences and indus- ment for Michigan’s single- tive refinish paint products The dealership is the only Toyota has planned to de- trial companies, plans to lay business tax. But Patterson, was selected by MTV Net- authorized Lamborghini BRIEFLY who led the ballot drive to velop the state-owned site off 300 manufacturing em- works Co. as the primary dealer to operate in Michi- ■ Dura Automotive Systems eliminate the SBT at the since at least 2004, but a le- ployees from its Ann Arbor paint supplier for the net- gan in more than 11 years Inc. (Nasdaq: DRRA) said it end of 2007, said a $500 mil- gal battle with West Bloom- plant during the next year. work’s entire 2006-2007 sea- and is one of only 23 in the will close its Brantford, On- ■ Swedish clothing re- lion tax cut is something field Township-based DPG son of “Pimp My Ride.” country. tario plant, affecting about tailer H&M opened its flag- the state can afford. York L.L.C. delayed the pro- 120 employees. ship Michigan store Friday, Coming soon is a word on ject’s progress. ■ The Detroit Area Busi- a 17,000-square-foot location a new Detroit police head- DPG had offered $25.2 ness Activity Index, produced at Lakeside Mall in Sterling quarters. Kilpatrick said the million for the site, but the by Comerica Bank, fell four Heights. H&M told Crain’s Michigan’ Central Depot State Administrative Board approved an agreement in points in April to 106, the Friday that it plans to open train station is too large and April 2005 for Toyota to buy lowest for the index since stores at Twelve Oaks Mall costly for the city’s needs. A the site for $11 million. In June 2003. The index mea- in Novi and Fairlane Town new site has been selected January, the Michigan sures eight different areas Center in Dearborn. and an announcement is Supreme Court killed a law- of activity and is seasonally ■ Detroit-based Health Al- likely in the next month. suit by DPG that claimed adjusted and corrected for liance Plan announced Fri- the state had unfairly inflation. The base year of day that it is launching its Supplier offers workers passed over its bid when 1996 equals 100. first broad-reaching indi- the State Administrative ■ The Detroit Zoological vidual health insurance $1K for GM down payments Board agreed to allow Toy- Society, the nonprofit product beginning, Solo, a fundraising arm of the De- Sterling Heights-based NEWSCOM ota to buy the land for the PPO, or preferred provider auto supplier Hi-Tech Tool In- The Lamborghini Murcielago lower price. troit Zoo, took over operat- organization, the Detroit ing the zoo Tuesday, The Free Press reported. ON THE MOVE Detroit News reported. ■ Swedish furniture re- OBITUARIES ■ Robert Swanson to direc- tailer Ikea is scheduled to tor, Department of Labor and open its first Michigan loca- ■ C.R. (Bob) Coy, retired More Mack, please! Economic Growth, Lansing, tion in Canton Township president of the Teamsters Can’t get enough from the island of issue. from acting director. He re- on Wednesday. Michigan Joint Council 43, places David Hollister, who ■ Detroit City Council on died of complications from horses and expensive hotels? Neither Maybe you’re hoping for an can we. That’s why we’ve created left earlier this year to run Wednesday voted 8-0 to ease a stroke May 27. He was 76. alternative view on Mackinac. Did you Prima Civitas, a Lansing- the ban on using hand-held ■ Tom Holzer, retired own- special sections on crainsdetroit.com miss an evening of cocktails on the dedicated solely to the coverage of area regional economic- cell phones when driving, er of Tom Holzer Ford in Grand Hotel’s veranda this year? Our the Detroit Regional Chamber’s development organization. making it a secondary vio- Farmington Hills, died of hand-picked bloggers, like Duncan ■ Mackinac Policy Conference. Gene Michalski to execu- lation, meaning that police complications of a stroke Campbell of M3 Strategies and If you haven’t had the chance to see tive vice president and COO, can’t pull over motorists May 19. He was 76. Marcie Brogan of Brogan & Partners ■ our expanded Web coverage, click on Beaumont Hospitals, Troy and solely for using them, The Larry Horn, co-owner of “Mackinac Conference” under the Convergence Marketing, have you Royal Oak, from senior vice Detroit News reported. the West Bloomfield Town- “News Resources” tab on the left covered. Some posts even have president and hospital direc- ■ Four salespeople from ship branch of Keller Williams navigation bar to catch up on stories WEB WORLD pictures. If we got you any closer, tor, Troy. He replaces for- Don Massey Cadillac in Ply- Realty, died of a heart attack that may not have made this week’s Daniel Eizans you’d be smelling the fudge. mer COO Kenneth Matzick, mouth were fired May 25, May 26. He was 44. 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