DETROIT BUSINESS MAIN 08-27-07 A 1 CDB 8/24/2007 6:01 PM Page 1

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http://www.crainsdetroit.com Vol. 23, No. 35 AUGUST 27 – SEPTEMBER 2, 2007 $2 a copy; $59 a year

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Volkswagen of America China scare a boost may take HQ out of state Volkswagen of America is seriously considering mov- ing both of its brands from Auburn Hills to a new head- quarters outside Michigan. VW would move to an for NSF’s testing area where its sales are stronger, and would shed some employees from its money-losing Volkswagen Fear of recalls increases business locally of America unit, according to a source in Germany. BY CHAD HALCOM national news. The search is “very seri- Stanford Ovshinsky CRAIN’S DETROIT BUSINESS NSF has clients and facilities in nine countries. Its ous,” and part of the parent prices range from as little as $35 for a lead test on a company’s push to turn Product safety recalls linked to Chinese supplier single-sample product to $20,000 or so for a full audit around the U.S. business, companies have spurred many Michigan businesses of a client’s production and supply chain in sectors the source said. The VW Inventor to have their own products tested professionally and like dietary supplement products. group lost $1.1 billion in to do more of their own internal inventory checks. NSF recently completed a $23 million expansion to 2005 in North America and That’s good news for NSF International Inc., a non- double its laboratory space in Ann Arbor, and Bester- $795 million in 2006. Ovshinsky profit product safety and certification facility in Ann The move would be tied to Arbor. velt said the additional capacity is coming in handy a restructuring of Volkswa- Phones are ringing steadily for NSF’s services, said with the surge in demand. gen of America by new CEO Lori Bestervelt, senior vice president and chief tech- Even though NSF also has a facility in Shanghai Stefan Jacoby, who assumes working on nical officer at the testing lab. that tests products Chinese manufacturers plan to ex- his job Sept. 1. A decision is Bestervelt estimates NSF is averaging five contacts port to the U.S., Bestervelt said it is Ann Arbor that is likely within months, ac- per week from companies seeking to become clients shouldering most of the new demand. cording to the source. — compared with one or two such contacts per week “The increase in testing requests has been coming Volkswagen would move ‘bigger game’ three months ago, before the Chinese recalls became See NSF, Page 19 its Audi and VW brands from Auburn Hills, where it BY TOM HENDERSON employs more than 1,500 CRAIN’S DETROIT BUSINESS workers. The company On Thursday, Stanford probably would trim jobs, Ovshinsky announced his re- the source said. tirement, effective Aug. 31, as The relocation is being or- chief scientist from Energy Con- chestrated by Germany and version Devices Inc., the compa- a small group Jacoby has Race restoration ny he and his wife, Iris, found- sent to the United States to ed in Detroit at the corner of assess and energize restruc- McNichols and Schaefer on turing efforts. Jan. 1, 1960. Penske puts passion Volkswagen of America is Even the company’s original looking at a number of cities name, Energy Conversion Labora- into improvements on both coasts. Audi’s sales tories, must have seemed par- are bigger on the West ticularly odd, even indecipher- Coast, while the VW brand able, then. What kind of energy at Belle Isle is split between both. Vir- would you be converting and ginia also has been men- into what? BY CURT CAVIN tioned as a possible head- A photo from that first year CRAIN NEWS SERVICE REAL FAST FACTS quarters site. shows Ovshinsky at a black- The decision to relocate is Roger Penske is passionate The Detroit Belle Isle Grand Prix board, diagramming a process is two races: The American Le not tied to the building of a to break a hydrogen molecule about motor sports, business and Mans Series race on Saturday is U.S. factory. loose from water. Forty-seven his adopted home- the Detroit Sports Car Challenge; “There are no concrete years later, freeing hydrogen CASINO’S town of Detroit, so The IndyCar Series race on Sunday plans to mix relocation with from its bonds is at the heart of imagine his enthu- is the Detroit Indy Grand Prix. a factory. There are misun- the alternative fuels movement. NEW LOOK siasm when talking The race is on the 2.1-mile Belle derstandings that do not But ECD didn’t stop there. It about Belle Isle, the Isle road course. make sense,” a Volkswagen Photos of public park he is and its subsidiaries have restoration The Le Mans race will be on the spokesman in Germany said. branched out far and wide. work at helping to restore. Speed Channel at 3:15 p.m. Corporate executives Rochester Hills-based ECD landmark, Penske sat re- Saturday. have said if the dollar stays (Nasdaq: ENER) has licensing Page 20. cently in front of a The IndyCar race will be on ABC weak, VW would have to agreements with companies broadsheet pam- affiliate WXYZ-Channel 7 at 3:30 p.m. Sunday. Radio coverage is on consider manufacturing in around the world for a wide ar- phlet that outlines virtually every WRIF 101.1 FM. the United States. A ray of technologies; Orion detail of the park’s renovation: Remaining grandstand tickets spokesman said, “A possible Township-based Cobasys L.L.C., 600,000 square feet of new con- factory is far, far away.” LAT PHOTOGRAPHIC crete, sculpted trees, a refurbished are available online at a joint venture with Chevron detroitgp.com or ticketmaster.com, — From Automotive News Corp., supplies nickel-metal hy- Roger Penske’s efforts have resulted casino building, landscaping, in many permanent modifications to or by calling (866) 464-PRIX or See This Just In, Page 2 TicketMaster at (248) 645-6666. See Ovshinsky, Page 18 Belle Isle. See Penske, Page 20

Two companies take CRAIN’S LIST different approach to Leading capital campaigns, NEWSPAPER making more pies, Page 3 Page 14 DETROIT BUSINESS MAIN 08-27-07 A 2 CDB 8/24/2007 6:24 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS August 27, 2007

housed in a building adjoining Matrix System Automotive Finishes. man Corp., a Collins & Aikman The restaurant group said it was THIS JUST IN the Detroit Science Center. Huron’s managing director, spokesman said Friday. a mutual decision. On Tuesday, the Detroit Board of Brian Demkowicz, said the price Only six plants total will re- — Daniel Duggan ■ From Page 1 Zoning Appeals is scheduled to was between $10 million and $40 main open at Collins & Aikman weigh a zoning request that million. by the end of August, said David Crain’s names new Web editor Shore Mortgage to hire 150 would allow construction. He said Zolatone has revenue Youngman, vice president of com- Thompson Foundation, also of less than $25 million and fewer munications. The company, Crain’s Detroit Business has Shore Mortgage, a Birmingham- the charter holder for University than 10 employees. Some of those which is shutting completely un- named Kevin Hill as Web editor. based mortgage lender, plans to Preparatory Academy K-12 school jobs, yet to be determined, will be der Chapter 11 bankruptcy pro- In this role, add 150 new jobs at four locations in Detroit, plans a math-and-sci- transferred to Walled Lake by the tection, is talking with a number he’ll help the within about six months, includ- ence middle school and a new end of the year. of undisclosed potential buyers Crain’s Web ing underwriters, account execu- charter high school in the city. — Tom Henderson for the assets, he said. team maintain tives and loan officers. The Science Center’s zoning re- — David Barkholz and improve All positions are at the compa- quest for land it now uses for ny’s lending offices in Birming- Battenberg hearing set www.crains parking would permit a 56,700- ham, Roseville, Taylor and Can- Taylor, St. Regis announce split detroit.com square-foot addition to its cur- The first substantive hearing ton Township. The company and create new rent building to house the school. in the civil case against J.T. Bat- Ownership of the newly re- seeks traditional mortgage pro- Web features. Grand Valley State University has tenberg III and other former Delphi opened St. Regis Hotel in Detroit fessional experience but is also Hill, 23, authorized a charter for both Corp. executives is scheduled for has parted ways with restaura- focused on bilingual candidates Hill joins Crain’s Thompson schools, but the high Oct. 5 in Detroit. teur Frank Taylor’s Southern Hos- and those with an information- from the Wayne-based Journal school needs a location. The U.S. Securities and Exchange pitality Restaurant Group L.L.C., technology background. Newspapers, where he was a re- The foundation hopes to open Commission has accused Batten- both parties confirmed last week. President Robert Rahal said porter for The Plymouth Journal the middle school next year and berg and six others of using ac- In the original plan, Taylor’s Shore is expanding largely be- and The Canton Eagle and also the high school in 2010. counting improprieties to artifi- group would have managed the cause of a focus on government- cially boost Delphi’s earnings 5,000-square-foot restaurant, La developed Journal Newspapers assistance lending like FHA — Chad Halcom and cash flow earlier this decade. Musique. Fadi Achour, general Online, which serves the group’s loans, which is proving more sta- The court will hear motions to manager of the hotel, said owner- eight publications. ble. Rahal said the company’s Huron Capital buys L.A. firm dismiss the charges filed by five ship decided three months ago Hill is a Westland native and “long-term prospect” is to fill all defendants. Battenberg is not that outside management of the Detroit resident. He graduated the new positions by late winter Detroit-based Huron Capital Part- among those asking for a dis- restaurant would not be needed. from Western Michigan University. or early spring, though a majori- ners L.L.C. planned to announce missal. His attorney, Michael Pat- ty of the hires should take place today its latest in a string of ac- tillo Jr. of the Washington, D.C., before year’s end. quisitions, Los Angeles-based Zo- law firm Baker Botts L.L.P., de- CORRECTION — Chad Halcom latone Automotive. Zolatone, which makes coat- clined to comment. Ⅲ A story on Page 13 of the Aug. 13 issue should have said RTT USA Inc. ings for sale to collision and body — Automotive News is the name of the American division of Munich-based Realtime Tech- Zoning board to discuss math, shops, will be folded into one of nology AG. An incorrect name was given. Huron’s portfolio companies, Ⅲ The Aug. 20 profile of the accounting firm of Virchow Krause & Co. science charter school Boston-based Quest Specialty C&A deal falls apart L.L.P. should have said that the former employer of partner Regina A math-and-science charter Chemicals Inc., and will be man- Cadence Innovation L.L.C.’s deal Staudacher was Axiom Custom Business Solutions L.L.L.P.of Englewood, middle school proposed by the aged by Quest’s automotive after- has fallen through to buy nine Colo. Thompson Foundation may be market unit, Walled Lake-based plastics plants from Collins & Aik-

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August 27, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Brokers fill former C&A space INDEX

Grassroots effort: Tax breaks help fuel deals DETAILS OF THE DEALS Tourism industry seeks $30M in annual funding. Brokers have found tenants for 319,000 square feet of space over four Page 7. BY DANIEL DUGGAN executive vice president for brokerage buildings formerly leased by Collins & Aikman Corp. CRAIN’S DETROIT BUSINESS services with Friedman Real Estate Learning: Event will teach small firms about Group. His brokerage leased 35,000 5755 New King Court government contracts. In a series of commercial real estate square feet in one building and helped The deal: LMS North America leased 35,000 square feet it plans to Page 10. deals, six brokerages have nearly filled sell two others. occupy in September. The building, C&A’s first headquarters, has been the 340,000 square feet of Troy office Collins & Aikman moved to Troy in mostly vacant since 2002. Broker is Friedman Real Estate Group. space left vacant af- 2000 and expanded to a three-building ter the bankruptcy of headquarters in 2002. 150, 250, 350 Stephenson Highway auto supplier Collins The company filed Chapter 11 bank- Collins & Aikman left the complex for smaller quarters in Southfield in & Aikman Corp. ruptcy in May 2005 and vacated all its May 2006, a year after filing Chapter 11 bankruptcy. Brokers say the Troy space in March 2006 for a much The deals: high vacancy rates in smaller space in Southfield, said David 150: Valeo SA leased 103,000 square feet and moves in next month. Troy made for some Youngman, vice president of communi- Brokers are Friedman Real Estate Group, L. Mason Capitani. good deals — made cations for Collins & Aikman. Reviving tired sweeter in some cas- 250: Troy-based Chimes Inc. bought the 105,000-square-foot building In the last quarter, the former Collins and moves in this month. Brokers are Grubb & Ellis, Mission Capital campaigns: Nonprofits es by government & Aikman space at 5755 New King use new techniques to Partners. breathe life into capital subsidies. Court has been mostly leased with an Lipton 350: Kostal Inc. bought the 76,000-square-foot building and moves in campaigns. Page 11. “It’s nice to see October move-in planned. that there’s that kind of interest in next month. Brokers are Signature Group, Farbman Group. those buildings,” said Mitchell Lipton, See Space, Page 17 Source: Crain’s research These organizations appear in this week’s Crain’s Detroit Business:

21st Century Jobs Fund ...... 7 Achatz Handmade Pie Co...... 3 Automation Alley ...... 10 CB Richard Ellis ...... 17 QuatRx preps Chimes Inc...... 3, 17 Cobasys L.L.C...... 1 Collins & Aikman Corp...... 3 Comerica Inc...... 11 Common Ground Sanctuary...... 13 for IPO or Detroit Institute of Arts...... 11 Downtown Detroit Partnership . . . . 20 Dura Automotive Systems Inc...... 4 EDF Ventures ...... 21 Energy Conversion Devices ...... 1 acquisition Energy Conversion Laboratories . . . . 1 Farbman Group ...... 17 Friedman Real Estate Group ...... 3 BY TOM HENDERSON General Dynamics Land Systems. . . 10 Grand Traverse Pie Co...... 21 CRAIN’S DETROIT BUSINESS Greektown Casino L.L.C...... 6 Grubb & Ellis ...... 3, 17 Ann Arbor-based QuatRx Pharmaceuticals Hollywood Market...... 21 Co., which has raised more venture capital Key Management Services ...... 17 than any company in Michigan since the Kostal Inc...... 3, 17 National Venture Capital Association began Lawrence Technological University . 13 keeping records in 1980, says it plans to go Lear Corp...... 4 LMS North America ...... 3 public or be sold by the end of next year. LMS...... 17 PHOTOS BY HEATHER ROUSSEAU President and CEO Robert Zerbe said the Increased demand has prompted Achatz Handmade Pie Co. to move to a larger facility. Krista Shoobridge (from left), Loyola High School ...... 13 $44 million the company raised in May will McCann Erickson ...... 7 Dave Lookoiso, and Jo Ann Austin make cherry pies at the current location. fund operations until MEDC...... 10, 17 then, but that investors Michigan Department of Agriculture . 7 do not want to do anoth- MMBDC...... 10 Michigan VC Association ...... 21 er venture capital round, Mission Capital Partners ...... 3 which would dilute their Nino Salvaggio ...... 3 equity. Noreen Keating ...... 12 The company has NSF International Inc...... 1 A bigger slice Ovonyx Inc...... 18 raised $116.6 million Penske Corp...... 20 from a variety of ven- Penske Racing ...... 20 ture-capital firms since Plante & Moran P.L.L.C...... 13 Achatz Handmade Pie Co. aims to grow, retain quality Zerbe it was founded in Decem- QuatRx Pharmaceuticals Co...... 3 ber 2000 to develop drugs Regional General Contracting. . . . . 20 BY DANIEL DUGGAN I’m going to to fight endocrine, metabolic and cardio- Remington Group ...... 11, 12 Royal Oak Industries ...... 11 CRAIN’S DETROIT BUSINESS start putting vascular diseases. The most recent was the INSIDE Salvation Army ...... 13 potassium second-largest single round of VC money St. John Health System...... 13 When Achatz Handmade Pie Co. Grand Traverse sorbate into ever invested in a state company, accord- St. John Providence Park Hospital. . 11 starts baking pies this week in Pie Co. tries franchise strategy the pies.” ing to the NVCA. State of Mich. Retirement System. . 21 its new Chesterfield Township to expand. The com- On Wednesday, the company announced Technology Ventures Inc...... 10 facility, it opens a new chapter Page 21. pany got its it has enrolled the last of the 827 subjects The Colton Group ...... 13 for the company. The Social Ventures Network of start after for ongoing Phase III FDA clinical trials of Southeast Michigan ...... 13 But with the move from a pole Wendy and its first drug, Ophena, an estrogen-free United Solar Ovonic L.L.C...... 18 barn into a Dave Achatz closed Achatz Family therapy to treat sexual dysfunction and University of Michigan ...... 12 19,000-square- Restaurant in Arcadia. Three vaginal atrophy in post-menopausal Volkswagen of America...... 1 foot bakery, years after they sold the restau- women. Westborn Market ...... 21 Wilson Technologies Inc...... 21 the company rant — and vowed to stay out of The trials, to test safety and efficacy, be- faces the chal- food service — they started the gan a year ago with patients being treated lenge of how pie-making business in their Ar- RECIPE FOR SUCCESS for 12 weeks. Trial data is expected to be to keep the cadia kitchen. Achatz Handmade Pie Co. has seen available by the end of the year. BANKRUPTCIES ...... 6 personal In its first year, 1993, the com- notable growth in revenue since it If those results mirror the success of BUSINESS DIARY ...... 16 touch that’s pany had revenue of $25,000. began in 1993. smaller Phase II trials, a second round of CALENDAR ...... 17 Revenue for 2006 was $3.85 mil- CAPITOL BRIEFINGS ...... 7 made it suc- 1993 $25,000 Phase III studies will begin next year, with CLASSIFIED ADS...... 15 Wendy Achatz cessful when lion, with the goal of $4 million company executives hoping to have Food 1994 $100,000 KEITH CRAIN ...... 8 it’s producing 15,000 pies a week. this year. and Drug Administration approval and be on LETTERS ...... 8 “We’re still going to be a hand- While pies were sold from a 1995 $250,000 the market in 2010. OPINION ...... 8 made pie company, not a ma- table at flea markets in the be- “I think there will be multiple opportuni- OTHER VOICES ...... 9 chine-made pie company,” co- ginning, they’re now being sold 1999 $1 million ties for QuatRx after the release of data,” PEOPLE ...... 17 owner Wendy Achatz said. “And in local Nino Salvaggio and Kroger 2006 $3.85 million said Peter Heron, managing partner of Fra- RUMBLINGS...... 22 just because we’re moving to a zier Healthcare Ventures, which is co-head- WEEK IN REVIEW ...... 22 Source: Achatz Handmade Pie Co. bigger facility doesn’t mean that See Achatz, Page 21 See QuatRx, Page 21 DETROIT BUSINESS MAIN 08-27-07 A 4 CDB 8/24/2007 5:34 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS August 27, 2007 twelve-25 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES life without limits 30 designer lofts only 1 city Creditors criticize Dura plan

BY BRENT SNAVELY will be challenging concerning val- of stock valued at between $140 CRAIN’S DETROIT BUSINESS ue (of the company) and subordi- million and $160 million to one nation,” of a group of bondholders, group of bondholders in exchange Several of Dura Automotive Sys- Ashmead said. for 39 percent to 43 percent owner- tems Inc.’s creditors argue the com- U.S. Bank Trust is part of Min- ship in the company. pany’s reorganization plan filed neapolis-based U.S. Bancorp. and is a Pacificor has agreed to under- last Wednesday unfairly compen- trustee for a group of bondholders. write 100 percent of that offering. sates one group of bondholders Dura officials and Roger Hig- Dura also plans to convert debts over another. gins, partner with Kirkland & Ellis owed to some bondholders into Creditors also argue that Dura L.L.P. in Chicago and lead attorney newly issued stock that will repre- rushed to offer new stock to a pre- for Dura, declined to comment. sent between 57 percent and 61 per- ferred group of bondholders with- But during an Aug. 15 hearing in cent of the reorganized company. out searching for other buyers, U.S. Bankruptcy Court in Delaware, Craig Wolfe, of the New York and effectively transfers control of Higgins said Dura’s planned equi- City offices of Kelley, Drye & Warren the company to Santa Barbara- ty rights offering is supported by L.L.P., who represents HSBC Bank based hedge-fund manager Pacifi- Dura’s creditors committee, the USA, a trustee for bondholders, cor L.L.C. for less than what the preferred group of bondholders told the court he is concerned company is worth. and a committee of lien holders. Dura rushed to complete its plan of twelve-25.com John Ashmead partner with “We do not believe that this is a reorganization because its bank- New York City-based Seward & disguised sale,” Higgins said dur- ruptcy financing agreement ex- Kissel L.L.P., who represents U.S. ing the hearing. pires in December. Bank Trust National Association, said Dura (Pink Sheets: DRRAQ) is Dura filed for Chapter 11 protec- Dura’s plan wipes out about $550 publicly traded, but would become tion last October and had 2006 total million in bonds held by mostly a private company under the pro- sales of about $2.1 billion. small, individual investors. posed reorganization plan. Brent Snavely: (313) 446-0405, “This plan has issues that we Dura seeks to offer new shares [email protected] Lear stock slides in wake of failed buyout

BY BRENT SNAVELY Rossiter would a statement e-mailed to Crain’s. CRAIN’S DETROIT BUSINESS assume Del- “While it is premature to project Grosso’s duties. potential successors several years Lear Corp.’s (NYSE: LEA) stock Lear was ac- out, we expect to consider all po- opened at $36.80 on July 16, the day quired in 1988 by tential candidates when Bob de- the company announced that a Rossiter, Ken cides to retire.” proposed $2.9 billion buyout offer Way and James He also said the stock drop isn’t from Carl Icahn was defeated by Vandenberghe, a result of just the failed buyout. shareholders. Since then, the stock vice chairman “While it is impossible to pre- has fallen more than $7 a share to and CFO. Way dict with any degree of certainty $29.19. DelGrosso retired a few why a stock goes up or down in a So does Pzena Investment Manage- years ago, but given period, recent declines are ment L.L.C., the investment firm Rossiter wants to remain and take not isolated to Lear; market condi- that led the fight to defeat Icahn’s more direct control of the company. tions have adversely impacted bid, regret its efforts? “Bob has indicated he plans to shares of most automotive compa- “If you looked at (the stock stay three more years or as long as nies,” Vandenberghe said. price) day to day, you would drive necessary to ensure Lear is on sol- Brent Snavely: (313) 446-0405, yourself insane,” said Bill Lipsey, id ground,” Vandenberghe said in [email protected] managing principal for Pzena. “And the fact that the market is taking it down only makes it more attractive.” STREET TALK Icahn offered to purchase South- field-based Lear for $37.25 a share, THIS WEEK’S STOCK TOTALS: 41 GAINERS, 31 LOSERS, 6 UNCHANGED but Pzena argued that the seat and 8/24 8/17 PERCENT All of the securities having been sold, this announcement appears as a matter of record only. electronics supplier could be CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE worth as much as $60 a share. May 17, 2007 1. Asset Acceptance Capital Corp. $10.89 $9.53 14.27 And Pzena’s argument clearly 2. Somanetics Corp. 19.01 16.72 13.70 carried the day. On Aug. 8, Lear dis- US$ 121,000,000 3. Michigan Heritage Bancorp Inc. 9.00 8.00 12.50 closed Aug. 8 that holders of 55 per- 4. Perceptron Inc. 10.19 9.29 9.69 cent of its shares voted against the 5. BorgWarner Inc. 82.84 77.50 6.89 offer while 31 percent voted for it. Borders Group Inc. 15.80 14.79 6.83 Lipsey also says Lear beat Wall 6. Street’s expectations when it re- 7. Semco Energy Inc. 7.51 7.13 5.33 8. Champion Enterprises Inc. 11.24 10.70 5.05 TriMas Corporation ported net income of $173.5 mil- lion, or $2.22 a share. 9. Ramco-Gershenson Properties. 31.97 30.57 4.58 “The price they agreed to sell to 10. FNBH Bancorp Inc. 20.00 19.25 3.90 11,000,000 Shares Ichan was unreasonably low,” 8/24 8/17 PERCENT Primary Offering CDB’S LOW PERFORMERS Lipsey said. CLOSE CLOSE CHANGE But Lipsey stopped short of say- 1. Visteon Corp. $5.50 $6.41 -14.20 ing whether or not Pzena is buying 2. North Pointe Holdings Corp. 9.65 11.00 -12.27

Joint Bookrunners more shares of Lear at its new, 3. Community Central Bank Corp. 7.88 8.86 -11.06 lower price and also declined to 4. Universal Truckload Services Inc. 19.42 21.11 -8.01 comment on the recent sudden de- 5. Amerigon Inc. 17.20 18.67 -7.87 parture of President and COO Dou- 6. Clarkston Financial Corp. 11.50 12.25 -6.12 glas DelGrosso. Co-Arrangers 7. Saga Communications Inc. 7.83 8.15 -3.93 DelGrosso had been in line to be- 8. Flagstar Bancorp Inc. 12.18 12.62 -3.49 come CEO following Icahn’s acqui- 9. Valassis Communications Inc. 9.75 10.08 -3.27 sition of Lear. 10. Credit Acceptance Corp. 25.48 26.31 -3.16 But on Aug. 14, Lear announced Source: Bloomberg News. From a list of publicly owned companies with headquarters that DelGrosso, long viewed as the in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading heir apparent at Lear, was leaving at less than $5 are not included. and said Chairman and CEO Bob DBpageAD.qxd 8/15/2007 11:04 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS August 27, 2007 Granholm, Patterson support slot machines at racetracks

BY AMY LANE ditional revenue for state govern- need to cement a fiscal 2008 bud- Joe Garcia, general counsel of tracks in the past year. “It’s not CAPITOL CORRESPONDENT ment.” get. the Michigan Racing Association, like we’re breaking new ground,” Patterson said Friday that raci- Michigan racetracks are propos- said the idea is “put on the table as he said. LANSING — A proposal to allow nos “would mean jobs” to the com- ing a measure that would allow a potential source of new revenues No details were available on the slot machines at Michigan race- munities with racetracks and them to have slot machines. In tan- … that could help resolve the im- number of slots being proposed or tracks has the interest of Gov. Jen- “would mean revenue to a cash- dem, others in Lansing are sug- passe” over the impending 2008 the specific amount of potential nifer Granholm and the support of strapped state.” gesting it be tied to a reduction in state budget and what new rev- revenue the state might receive. Oakland County Executive L. He said he doesn’t have a role in Michigan’s income tax or a small- enue and cuts are needed to craft a Two-thirds of the House and Brooks Patterson, as Michigan moving the proposal forward but er income-tax increase than law- balanced spending plan. Senate would need to approve such looks at new revenue sources to is “a vocal supporter.” makers might otherwise enact as a “No one wants to vote for a tax a legislative measure to put it on help solve its budget problems. A state House committee aired budget solution. increase, no one wants to vote for the ballot. “We’d have to see the specific the issue last week, but no legisla- If approved by the Legislature, cuts, so then the question be- Roger Martin, spokesman for proposal, but the governor has tion has yet been introduced nor the racino measure would go on comes, how do you fund what is Greektown Casino L.L.C., said the supported racinos in the past,” has a formal proposal publicly the ballot for voter approval. In ad- necessary?” he said. proposal “amounts to a hollow said Liz Boyd, Granholm’s press emerged. Still, the idea generated a dition, each community where the Garcia said New York, Florida, promise that no one can keep.” secretary. She said the governor buzz as lawmakers face the Oct. 1 gambling would take place would Pennsylvania and Indiana have He said neither the Legislature “has said all along that we need ad- start of the new fiscal year and the need to vote its approval. authorized slots at their race- nor the ballot proposal’s statewide passage would guarantee local ap- proval, and “this isn’t a guarantee ©2006 Authorized Mercedes-Benz Dealers of any tax rollback,” either. Under Proposal 1 of 2004, any state actions to expand gambling opportunities require a statewide vote as well as voter approval in Weatherproof your family. any municipality in which the ex- pansion would take place. That 2004 ballot initiative pitted horse racing, educational and The complete line of Mercedes-Benz SUVs. business interests against other businesses, Detroit casino and American Indian casino backers. Matt Marsden, press secretary for Senate Majority Leader Mike Bishop, R-Rochester, said Bishop has been “briefed on the racino is- sue, but currently there’s no for- mal plan in place to pursue racinos as the option for fixing Michigan’s problems. “As he’s said consistently, all options are on the table as we move forward, and we’re currently spending our time focused on cuts in the 2008 budgets to find the greatest level of savings we can be- fore any discussions of revenue move forward,” Marsden said. He said Bishop “is certainly open to anything that’s going to help avoid having to increase peo- ple’s taxes.” But there’s still “a lot to be looked at” in the racino issue, not the least of which is how much revenue racinos could produce. Greg Bird, press secretary for House Speaker Andy Dillon, D- Redford Township, said Dillon is “looking at a number of options to help balance the budget.” But raci- nos were not included in a propos- al that Dillon sent Bishop, Bird said.

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The Mercedes-Benz TM standard 4MATIC 4-wheel drive to help protect you in the harshest of driving conditions. The following businesses filed R-Class, G-Class, M-Class, GL-Class Like the ML350 with a 5-star crash safety rating,* the 6-passenger R350 with seven for Chapter 7 or 11 protection in With Standard 4MATIC 4-Wheel Drive climate control sensors, the legendary G 500 and the 7-passenger GL450 with unit-body U.S. Bankruptcy Court in Detroit Aug. construction for a smooth, sedan-like ride. Think of it as one family looking out for another. 17-23. Under Chapter 11, a compa- ny files a reorganization plan. Chapter 7 involves total liquida- tion. After Hours Limousine Inc., 34121 Special Rates available to DCX employees Riviera, Fraser, voluntary Chap- ter 7. Assets and liabilities not Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester available. 36600 N. Woodward Ave. 39500 Grand River Ave. 595 S. Rochester Rd. O.E.M./Erie Inc., 30801 Barrington (248) 644-8400 (866) 524-9094 (248) 652-3800 St., Madison Heights, voluntary Chapter 7. Assets and liabilities not available. 2007 models shown with optional equipment. G-Class additionally equipped with standard manual locking differentials. Model Year 2007 G-Class available early November 2006. *Government star ratings are part of the National Highway Traffic Safety Administration’s (NHTSA’s) New Car Assessment Program (www.safercar.gov). For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com. — Compiled by Aaron Harris DETROIT BUSINESS MAIN 08-27-07 A 7 CDB 8/24/2007 4:37 PM Page 1

August 27, 2007 CRAIN’S DETROIT BUSINESS Page 7 Tourism industry seeks $30M in annual funding

LANSING — Bill in and promotion of the state firm Governmental Consultant Ser- hand, Michigan’s tourism is very critical to our econ- vices Inc., has been named execu- businesses are ramping omy,” he said. Bird said the tive director of the Michigan Opto- up a grassroots effort to speaker’s office plans to metric Association. She fills a role convince lawmakers to look at “a number of op- previously held by association ex- provide annual promo- tions” on the funding issue. ecutive vice president Bill Dansby, tional funding. House Appropriations who retired. Last week’s introduc- Chairman George Cushing- George Stojic, former director tion of a bill that would berry, D-Detroit, has float- of the Michigan Public Service Com- WILSHIRE PLAZA NORTH WILSHIRE PLAZA WEST CRYSTAL GLEN earmark $30 million an- ed ideas that include a mission’s operations and wholesale 900 Wilshire Dr. Troy, MI 1050 Wilshire Dr. Troy, MI 39555 Orchard Hill Pl. Novi, MI nually in state sales taxes rental-car tax to generate markets division, has become di- *From 1,000 to 12,000 SF* *From 900 to 20,000 SF* *From 850 to 23,500 SF* to fund tourism market- CAPITOL BRIEFINGS more promotional funding. rector of planning and strategic de- ing will be followed by e- Amy Lane The sales-tax proposal velopment at the Lansing Board of For More Information, Please Call: mails, phone calls, letters comes at a time when state Water & Light. Susan Devon, former 248.324.2000 and other legislative contacts to sales-tax revenue has been strug- director of the PSC’s regulated en- pass a measure backers say will gling. The Senate Fiscal Agency’s ergy division, has become the keep Michigan’s tourism promo- latest monthly revenue report Board of Water & Light’s CFO. At tion competitive with other states. shows sales-tax collections in fis- the Lansing utility, both join for- Senate Bill cal 2007 trailing last year’s level by mer PSC Chairman Peter Lark, now www.friedmanrealestate.com 690, sponsored 1.6 percent. July sales-tax revenue the BWL’s general manager. by Jason Allen, posted an increase over last July, Amy Lane: (517) 371-5355, R-Traverse City, but it was only the third time in [email protected] is supported by the last nine months that sales-tax a coalition of collections did so, according to the Michigan report. tourism busi- The coalition says every $1 ness interests spent on tourism promotion gener- that seek to ates $2 to $3 in new sales-tax rev- boost Travel Allen enue. And it points to the state’s Michigan adver- current Pure Michigan campaign tising spending from the $5.7 mil- as indication of what adequate lion in general-fund money that’s promotional spending can mean. been spent in past years. State officials announced last Last year and this year, Michigan week that the campaign has been tourism promotion has benefited named the top state tourism ad from an influx of money from the campaign in the country by the state’s 21st Century Jobs Fund. The al- Travel Industry Association of America. location gave tourism an additional The campaign also took top honors $15 million over the two years, on from the association for the best top of the general-fund money. state tourism TV commercial. But with the one-time boost end- The Birmingham office of ing, the Tourism Improving Michi- McCann Erickson developed the gan’s Economy coalition is pushing Pure Michigan campaign, which to sustain and increase the budget showcases the state’s golf courses, for tourism advertising. And back- beaches, natural beauty and other ers hail not just from traditional attributes. northern tourism climes but from The state has said that the cam- around the state, underscoring the paign has driven substantial in- issue’s importance to urban as creases in volume at its tourism well as rural areas. Web site, which also has the most Joining Allen in co-sponsoring traffic to any state tourism Web the bill are Sens. Buzz Thomas, D- site in the country, according to Detroit; Hansen Clarke, D-Detroit; tracking company Hitwise. and Jim Barcia, D-Bay City. “It’s not a partisan issue. There’s tourism dollars being spent Comings & goings "O
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Page 8 CRAIN’S DETROIT BUSINESS August 27, 2007 OPINION Raise spending for ‘Pure Michigan’ ads tate Sen. Jason Allen has a great idea. The Traverse City Republican is proposing that S lawmakers set aside $30 million from state income-tax collections to pay for expanding the state’s “Pure Michigan” advertising campaign. (See Capitol Briefings, Page 7.) That would be a significant increase from the current $5.7 million, which Allen says is low — 42nd among the 50 states. (Gov. Jen- nifer Granholm’s boost to $15 million in spending for two years expires this year.) Tourism officials boast that for every $1 invested in promo- tion, the state gets $2 to $3 in new sales-tax revenue within months. So Allen’s S.B. 690 will more than pay for itself. The “Pure Michigan” campaign was named best state tourism campaign in the U.S. by the Travel Industry Associa- tion of America. And as Amy Lane reports on Page 7, Web site traffic on Michigan’s site is setting records, which officials at- tribute to the Pure Michigan campaign. This is not the time to cut back on the campaign or the mo- mentum it is building. Lawmakers might be persuaded this is the right tactic if supporters define specific ways to track whether the invest- LETTERS ment is paying off, perhaps by charting year-to-year tax collec- tion from a sample of tourism-related businesses. Regardless, this is a no-brainer. The Legislature and gover- nor should embrace this investment strategy. State tax increase harmful

Editor: the state would be boasting a $15.7 Crain’s Detroit Business In the Aug. 6 issue, Keith Crain billion surplus instead of a $1.8 bil- welcomes letters to the editor. NSF helped by China scare had an excellent column question- lion deficit. As it is, each year the All letters will be considered for ing the inability of the Michigan state lays claim to an ever larger Suddenly, “Made in America” is sounding pretty good. publication, provided they are Legislature to cut costs while signed and do not defame percentage of its taxpayers’ in- The recent spate of much-publicized safety concerns with Michigan’s businesses and fami- individuals or organizations. come. food products and toys made in China has made American lies are forced by the state’s trou- Letters may be edited for length Ⅲ This outrageous increase in consumers more conscious of fine-print product labels. bled economy to cut costs at every and clarity. state spending does not include the turn (“Politicians can learn much many billions of unfunded liabili- It’s a huge opportunity for Detroit area companies to pro- Write: Editor, Crain’s Detroit from the people”). ties (for the pensions and retiree- mote the origins and safety standards of their products. Business, 1155 Gratiot Ave., Interestingly, Crain’s column Detroit, MI 48207-2997. medical benefits for public em- But even companies that use “Made in America” as a sell- was followed by a column by Mary ployees) currently on the books E-mail: [email protected] ing point sometimes outsource components from China. Kramer that appeared to give her ($23 billion just for the Michigan So companies in the U.S. and China are clamoring for the imprimatur to a 9 cents-per-gallon Public School Employees Retire- seal-of-approval from nonprofit product safety and testing state gasoline tax increase to pay Ⅲ The cost to run the state has ment System) that must be paid by for infrastructure improvements gone from $18.3 billion in the 1990 future generations of Michigan company NSF International Inc. in Ann Arbor. — a tax increase of $450 million fiscal year to $45.1 billion in the taxpayers. As Chad Halcom reports on Page 1, the phones at NSF are per year (“A gas tax can help main- 2006 fiscal year — an increase of Ⅲ Michigan has 83 counties, 533 ringing because of the China scares. Chinese companies already tain state bridges”). 146.4 percent for an average annu- cities or incorporated villages, and have tapped NSF services through its facility in Shanghai. Another tax increase of any al increase of 5.8 percent. At the 1,242 townships. It also has 57 in- Given the Chinese penchant for continuous improvement, kind for any purpose will not serve same time, the local Consumer termediate school districts and 553 Michigan. Despite Gov. Jennifer Price Index (for Midwest urban K-12 school districts that average a their desire to avoid a trade war and their hopes for making a Granholm’s protestations to the consumers) has increased by 49.7 mere 3,200 students per district good showing as host to the summer Olympic games in Beijing contrary, Michigan’s government percent for an average annual in- (versus, for example, Maryland’s next year, the government will attack this problem fiercely. is so bloated with bureaucratic crease of 2.6 percent. Had our 35,100 students per K-12 district). Chinese remedies may make American executives and regula- overspending it almost defies com- state’s overseers increased costs at Where are the state programs to tors shudder: One Chinese regulator was executed in the wake prehension. Consider just the fol- the rate of inflation, Michigan’s encourage consolidations among lowing: budget would be $27.6 billion and of a scandal involving taking bribes while licensing drugs. See Letters, Page 9

KEITH CRAIN: Now we have become the ‘beer’ state Everyone realizes that our gov- and expenses is enor- everybody, they’ll be do- But through it all, one revenue beer. Does that mean that they are ernor seems to have certain con- mous. Somehow, every- ing their job. stream seems immune. God forbid afraid that a united and vocal stituencies to whom she is behold- one seems to think that But now it has gotten we raise the tax on beer. group of voters might actually have en. It appears she doesn’t think it’s the magic bullet is to to the point of being I have to admit right up front that some impact on their decision? prudent to disturb the relationship find some new tax or tax- ridiculous. The gover- I am not much of a beer drinker, so Then I suggest that we rally the these constituencies have with the es that will allow our nor and Legislature are any tax large or small wouldn’t im- “beer vote” to march on Lansing. governor’s office. state government to con- trying to raise money pact me. But I am amazed at this les- Are they willing to lobby on behalf Whether anyone wants to admit tinue to live in a style to with all sorts of sordid son in civics in our state. of other tax increases? it, our state has two things going which it is accustomed. schemes. We’ll raise the Our governor and Legislature It raises some interesting possi- against it: We are as close to being It’s going to be tough tax on cigarettes and are willing to trade income tax in- bilities. If the government is afraid in a depression as we can be, but to cut a program or spe- cigars, put a couple of creases for slot machines at race of the beer drinker, we should try we’ll call it a recession; we are in a cific budget without of- extra bucks against al- tracks. But no one is even suggest- to discover other groups that put crisis of state government, but no fending some special in- cohol, raise our sales ing that a tax increase on beer such fear into the hearts of legisla- one in Lansing cares to admit the terest. Heck, everybody tax, and try and find might be worth discussing. tors. seriousness of our predicament. has a special interest or two. In this any potential revenue stream to I am told Lansing is afraid of the Democracy in action. Isn’t it The shortfall between revenue crisis, if Lansing offends just about maintain government programs. public uproar over a higher tax on wonderful? DETROIT BUSINESS MAIN 08-27-07 A 17 CDB 8/24/2007 3:26 PM Page 1

August 27, 2007 CRAIN’S DETROIT BUSINESS Page 17 PEOPLE CALENDAR BIOTECHNOLOGY Also, Steve Blow to vice president, of Detroit Regional Development Com- from account supervisor. COMING EVENTS mittee. Detroit City Council President George Dunbar, president, CEO and a IN THE SPOTLIGHT Detroit Economic Club. Noon Sept. 6. Kenneth Cockrel Jr. $35 members, $50 director of Aastrom Biosciences, Ann Jay Kargula to CEO, Smith-Winchester Ron Gettelfinger, president, Interna- others. Detroit Golf Club. Contact: Arbor; and Daniel Calvo, president EPrize L.L.C. wants to build a better Inc., Southfield, from executive vice Leslie Smith, (248) 353-0735, ext. 4152. and CEO of Assay Designs Inc., Ann mousetrap, so president, creative services. Also, tional Union, United Auto Workers. Arbor; to the board of directors of Ac- it appointed Frank Morisette to COO, from presi- Masonic Temple, Detroit. $40 members, $50 guests of members, $65 others. Con- curi Cytometers, Ann Arbor. Jeffrey Ershler dent, operations; and Michael Ladd to Lifeline Awards. 5:30-9 p.m. Sept. 26. to make sure president, from executive vice presi- tact: (313) 963-8547. Wayne State University College of CONSTRUCTION that happens. dent, client services. Nursing. Nancy Schlichting, president Harris Katzman to senior project su- Ershler, 37, Kristin Goza to senior art director, Detroit Economic Club. Noon Sept. 12. and CEO of Henry Ford Health Sys- perintendent, Oliver/Hatcher Con- has been Curve Detroit, Pontiac, from art direc- Harnessing Global Intellectual Capital tem, and the late Rachel Boone Keith, struction, Novi, from project superin- named vice tor. to Create Corporate Value. With Ra- physician, philanthropist and commu- tendent, Butcher & Baecker president, Kelly Scattergood to director of sales man Roy, chairman and CEO, Quatrro nity leader, will be commemorated. Construction, Rochester Hills. mousetrap, at strategies, The Kirkwood Group, Ann BPO Solutions (pty) Ltd. Townsend Ho- Detroit Yacht Club. $125. Contact: Mary Hollens, (313) 577-6967. Nicole DeSalvio to director of market- the Pleasant Arbor, from executive vice president tel, Birmingham. $40 members, $50 ing, DeSalvio Group Inc., Clinton Ridge-based of sales and marketing, Home guests of members, $75 others. Contact: Township, from administrative assis- Ershler interactive- Builders Advantage, Livonia. (313) 963-8547. Jeffrey Gitomer’s tant. promotions company. He and his Little Black Book team are responsible for finding a NONPROFITS of Connections: CONSULTING better way for everything the Ideas Before Dawn. 7:30 a.m. Sept. 12. How to get From company does, including Gary Guetschow to Downtown Detroit Partnership, Check- “Who You Know” Michael Albritton to director, AlixPart- CFO, The Guid- er Sedan, LaSalle Bank, Comerica ners, Southfield, from principal, increasing efficiency and revenue, to “Who Knows and measuring operational ance Center, Bank, Michigan Association of Certi- You.” 7-11 a.m. PRTM Management Consultants, Southgate, from Waltham, Mass. performance. fied Public Accountants and Crain’s De- Oct. 12. Michigan accounting offi- troit Business. Retail Opportunities for Retailers Associa- James Gouin to senior managing di- Before joining ePrize, Ershler was cer. Detroit. With Stanley Eichelbaum, pres- tion and Crain’s rector, corporate finance segment, FTI planning and asset manager at Honeywell International in ident of Planning Developments Inc. Detroit Business. Consulting Inc., Detroit, from vice RETAIL Jeffrey Gitomer, president, CFO, strategy & business Clearwater, Fla. and Marketing Developments Inc. De- troit Athletic Club. $30. Contact: (313) Gitomer author and development, international opera- Ershler earned a bachelor’s degree Jamie Chapman crainsdetroit.com 566-8250. tions, Ford Motor Co., Dearborn. in history from Columbia University to associate exec- weekly sales columnist. The Ritz-Carl- Laurie Harbour-Felax to managing di- in New York, and an MBA from the utive director, ton, Dearborn. $99. $89 each for groups rector, operational strategy & perfor- University of Michigan. Guetschow American Cancer Regional Development Breakfast. 7:30-9 of 10 or more. Contact: www.gitomer mance improvement group, Stout Ri- Society, Southfield, from Relay for a.m. Sept. 25. The Engineering Society .com/dearborn. sius Ross, Farmington Hills, from INFO/TECHNOLOGY Life specialist. president and founder, Harbour-Felax Bob Meaux to Group, Troy. Anne Kohnke sales manager, Meda to vice pres- Mercedes-Benz of ident of informa- EDUCATION St. Clair Shores, tion technology, St. Clair Shores, Henry Tanaka to dean of academic and Divdat Inc., Fern- Space: Troy spots filled student services, Auburn Hills cam- dale, from direc- from used car pus, Oakland Community College, tor of information manager, Shu- ■ From Page 3 Bloomfield Hills, from interim dean. technology and man Chrysler- operations, Park Jeep, Walled Two buildings in the three- at 5755 New King Court. Troy will ENVIRONMENTAL West Gallery, Lake. building complex on Stephenson also give LMS a tax abatement of Sean Paulsen to associate, Golder As- Southfield. Mary Vandewiele Highway at 14 Mile Road have $30,500 over 10 years. sociates Inc., Wixom, remaining as Jeremy Wilkinson Meaux to affiliate pro- been sold to tenants and one has The LMS deal is the most recent Meda geosciences group leader and senior to managing con- gram director been fully leased. leasing transaction. project geologist. sultant, UltraLevel Inc., Detroit, from and minority owner, Better Health Absorption of such large blocks Stores, Novi, from director of market- Collins & Aikman grew out of senior technical consultant, MTM of space has been rare in Troy, ing, Meer Dental, Canton Township. the building on New King Court in FINANCE Technologies, Troy. Also, Ronald with conditions landlords and Fromme to senior project manager, 2002 when it moved to the three- Doug Swiatkowski to director of edu- leasing representatives describe from senior network architect/pro- SERVICES building complex at 150, 250 and cation, training and development, as “brutal.” Troy office space is 25 Burns & Wilcox, Farmington Hills, ject manager, Inacomp Technical Ser- Darron Markwood to marketing coor- 350 Stephenson Highway, said percent vacant, according to sec- from training and development man- vices Inc., Eastpointe. dinator, Huffmaster Crisis Manage- Youngman. ager, Raytheon Professional Services, ment, Troy, from marketing manager, ond-quarter figures by CB Richard Since that move, the 60,000- Troy. LAW Lease Corp., Troy. Ellis. square-foot building has had at David Kurlandsky to senior attorney, Erna Laza to administrator, The Vil- But brokers say it’s that compe- HEALTH CARE intellectual property practice group, lage of Westland Senior Living Com- tition that drove owners to make most 10,000 square feet occupied, Richard Smith to Butzel Long, Ann Arbor, from senior munity, Westland, from adult foster competitive deals. Lipton said. service chief, ob- corporate counsel, Pfizer Inc., Ann care facility administrator, O&D In- The 105,000-square-foot building “It’s great that you have a com- Arbor. stetrics and gyne- vestments L.L.C., Sterling Heights. at 250 Stephenson Highway, for ex- pany expanding in this market, cology, Henry Alicia Skillman to director of the fair ample, was once appraised at $14 where there’s been so much attri- Ford Hospital, De- housing unit of the civil law group, Le- SUPPLIERS troit, remaining gal Aid and Defender Association Inc., million and sold for roughly $6 tion,” Lipton said. Larry Beard to vice president, merg- as obstetrician Detroit, from staff attorney, civil law million to Troy-based Chimes Inc., a Finding the space ended a and gynecologist, group. ers, acquisitions and business devel- source close to the deal said. opment, Cooper- Standard Automotive search that spanned Troy, Auburn Henry Ford Med- Daniel Henry to member, intellectual The 76,000-square-foot building ical Group. Inc., Novi, from president, global fluid Hills and Rochester Hills said Rick property practice group, Honigman at 350 Stephenson Highway was Edwin Tuller to di- systems division. Also, Michael Ver- Comiskey, a consultant with Key Miller Schwartz and Cohn L.L.P., sold to Germany-based Kostal for rector of health Bloomfield Hills, from associate, intel- wilst to president, global fluid systems Management Services who handles division, from vice president, strategy roughly $7 million, well below the Smith performance mea- lectual property law practice, Rader, the facility management for LMS surements, Health Alliance Plan, De- and business development. cost to develop a similar building, Fishman & Grauer, Bloomfield Hills. and worked with Friedman on the troit, from director of quality develop- Andrew Goldberg to shareholder, a source said. lease. ment, Care Choices, Farmington Kemp Klein Law Firm, Troy, from part- TELECOMMUNICATIONS “Those buildings are good deals, Hills. Also, Vince Ferri to vice presi- ner, Lipson, Neilson, Cole, Seltzer & Patrick Paterno to regional director of but not for an investor who wants The building is in a good loca- dent of business affiliations and sup- Garin, P.C., Bloomfield Hills. communications, Michigan Region, tion, he said, and with a 35,000- port, from director of application de- to buy them and hold them,” said Comcast, Southfield, from manager of velopment, business configuration Randall Book, a senior vice presi- square-foot lease LMS will get its MANUFACTURING media relations, Leader Dogs for the team and medical and business infor- name on the building. Blind, Rochester. dent with the Southfield office of matics; Toni Frawley to director of cor- David Jaffe to gen- Grubb & Ellis, which represented “And it was very competitive in eral counsel and porate product development, from the buyer for 250 Stephenson High- terms of leasing,” he said. market research manager; and Anita secretary, Landino to director of advertising and Guardian Indus- PEOPLE GUIDELINES way. “It’s a good deal for a user.” The bad news is LMS is moving communications, from interim lead. tries Corp., Government incentives also from its smaller office at 1050 Announcements are limited to Auburn Hills, helped get the deals done. management positions. Nonprofit Wilshire Drive, leaving space HOSPITALITY from associate Kostal will get a $5 million state general counsel. and industry group board there vacant. Scott Stinebaugh to director of sales tax credit over 10 years from the Charles Pryde to appointments can be found at Other space soon to be left va- and marketing, Westin Book Cadillac Michigan Economic Development national accounts www.crainsdetroit.com. Send cant is Kostal’s current space in , Detroit, from director of sales Hotel manager, The submissions for People to Joanne Corp., the MEDC announced in and marketing, Novi. Home Depot, Scharich, Crain’s Detroit Business, March. “This shows that there is depth Westin Detroit Jaffe BrassCraft, Novi, 1155 Gratiot Ave., Detroit, MI In addition, the city of Troy will Metropolitan Air- to the market and there are credit from channel manager. 48207-2997, or send e-mail to contribute a tax abatement of port hotel, Romu- tenants doing business in the Jai Shah to vice president-strategic [email protected]. Releases $105,000 over 12 years, said Brian lus. Also, Denise area,” said Andy Farbman, co- Bednarczyk to di- planning/group vice president, win- must contain the person’s name, Murphy, Troy’s assistant city dow operating divisions, Masco Corp., rector of sales and new title, company, city in which manager and director of economic president and CEO of the Farbman marketing, West- Taylor, from vice president for strate- the person will work, former title, Group, which represented owners gic planning. development. in Detroit Metro- former company (if not promoted at 350 Stephenson Highway. “But from within) and former city in The MEDC also is giving a tax politan Airport, the bad news is, you have a compa- from director of MARKETING which the person worked. Photos credit of $686,000 over seven years ny leaving the west side.” group sales, West- Shelly (Havard) Otenbaker to senior are welcome, but we cannot to the new North American office of Belgium-based LMS. That com- Daniel Duggan: (313) 446-0414, Bednarczyk in Detroit Metro- vice president, Eisbrenner Public Re- guarantee they will be used. politan Airport. lations, Troy, from vice president. pany is leasing 35,000 square feet [email protected] DETROIT BUSINESS MAIN 08-27-07 A 18 CDB 8/24/2007 6:00 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS August 27, 2007 Ovshinsky: Rebuilding ■ From Page 1 dride batteries for General Motors’ You’ve certainly had an interesting hybrid cars. Subsidiary United So- life. You didn’t go to college but have lar Ovonic L.L.C., Auburn Hills, is written hundreds of articles that have building a plant in Greenville to been published in scholarly journals. make flexible solar panels for The PBS program “Nova” profiled you housing and commercial construc- in 1987. Time named you “A Hero for tion; and Rochester Hills-based the Planet” in 1999. Last year, The Ovonyx Inc., a joint venture with In- Economist called you “the Edison of tel Corp., is developing nonsilicon- our age.” Will you be working on an based computer memory that Ed autobiography? Doller, chief technology officer of I don’t believe in that. A woman Intel’s flash memory group, de- named Lillian Hoddeson, a prize- scribed to a trade journal in March winning historian and a physicist “as pretty close to Nirvana.” at the University of Illinois, is writing Iris died at 79 last August, hav- the scientific history of my life. ing lived long enough to see her And Helmut Fritzsche, the former and Stan’s vision achieve critical head of the physics department at mass. In an interview Friday from the University of Chicago, is compil- his Bloomfield Hills office, Ovshin- ing my scientific papers from the sky, 84, who stepped down as ECD early 1990s on. That’s my third president in March, made it clear compilation. It’s supposed to be that while he might be retiring out by my 85th birthday on Nov. from his company, he wasn’t retir- 24, but I doubt if they’ll have it ing from the world of science. done in time. The company and its sub- sidiaries, he said, need to focus When you founded the company, more than ever on near-term you and Iris said you wanted to processes to improve profits and change the world. You seem to have fi- complete what has been a long nally reached some critical mass. Did slow transition from research to you think it would take nearly 50 commercial success. He needs, he years? said, to focus on big-picture, long- I told Iris before she died, “We’re term projects that will continue to going to change the world,” and change the world. she said: “No, Stan, we have changed the world.” All over the Why did you decide to retire? The world, people are using our stuff. announcement said you would contin- ue to consult for ECD and advise The critics have pretty vocal over Ovonyx on its computer-memory tech- the years. They said ECD might have nology. Why not just stay on as chief done great research but it wasn’t scientist? much of a public company. It lost mon- The things I want to do now are ey every year. Any thoughts? not something a growing company The things I fought against the can do. It needs to meet the prof- critics for are what’s making mon- itability standards Wall Street ey, now. If I’d have listened to puts out there. I built a culture them, these things wouldn’t have there I’d like to protect, and I be- seen the light of day. You don’t run lieve sincerely the company is go- a company for 48 years and not be ing to do a great job. I hope so. I a realist. You listen to informed still own a lot of stock. opinion, not uninformed criticism. But now I want to really go after I’ve done everything I said I was my passion. I don’t want to be com- going to do. I turned out to be a petitive with them. I don’t want to pretty good businessman. be a distraction. I want to work on You were married to Iris for more stuff they won’t be working on. I’m than 50 years and her business part- going to be after bigger game. ner for more than 40. How have you I’m an industry builder. Now’s coped since her death? the time to build new industries It’s been the toughest. It’s beyond for the future. The battle has been description. I failed at trying to han- won (at ECD). I want to do the or- dle it. It’s going to be with me all my der-of-magnitude things I’ve done life. I failed at living alone. I could- my whole life, and then turn them n’t eat. I couldn’t sleep. I could work into products for the real world. and that was about it. I was as in- How do you physically go about tensely in love with her from the that? Will you have access to a lab? first moment I saw her until the Will you do physical research? minute she died. This is a way to I will certainly want access to keep going. If it was just a matter of laboratories, not a lab. I’ll certain- being active, I’d retire. ly do R&D, not on the next genera- She died very suddenly. What hap- tion of things, but on generations pened, if you don’t mind my asking? downstream for the building of I had a bacteria that had at- new industries. If we don’t build tacked my heart. I went in for a hip new industries based on science operation and got an infection that and technology, what’s going to threatened my life. Iris wanted me happen? Look at Detroit. It’s a tragedy. I want to help build indus- to start building up my strength. tries that are going to hire people. We were swimming in our little The world’s at a crucial point lake. She was in the shallow end it’s never been at before, and we and I was out in the middle and she have to answer the big questions. said to Lillian (Hoddeson), “I’m They are answerable, and I intend worried about Stan out there,” and to answer them. I want to do big that was the last thing she said. things in energy and information. The next thing we saw, she was I will do R&D, and I will do li- floating. We think it was a heart at- censing as it’s required. I’ll be con- tack, but I didn’t have them do an sulting all over the world. I’m leav- autopsy. There was no point. I’m ing next week to give a talk in trying now to build something Switzerland, then I’m off to Italy, over that chasm of unhappiness then back home, then I’m going to that gives me some satisfaction. Taiwan and Japan, then maybe Tom Henderson: (313) 446-0337, Mexico. [email protected] DETROIT BUSINESS MAIN 08-27-07 A 19 CDB 8/24/2007 4:36 PM Page 1

August 27, 2007 CRAIN’S DETROIT BUSINESS Page 19 NSF: China scare provides a boost for nonprofit’s testing business ■ From Page 1 in from U.S. companies, and the re- have recalled more than 3.25 mil- In Chesterfield Township, Lionel This (testing) was just an added dards. quest is largely for tests to be done lion toys and other products for Trains has been conducting local precaution.” Wal-Mart was reviewing its sup- here in the U.S.,” she said. “We’re children on their own or in cooper- tests of its warehoused inventory, Pet food retailers were also grap- ply of Chicken Jerky Strips from finding the clients feel more com- ation with the U.S. Consumer Prod- even though the company has had pling with a smaller scare last Import-Pingyang Pet Product Co. and fortable with results of a U.S. test ucts Safety Commission, all due to no product complaints, Lionel week after it was revealed Wal-Mart Chicken Jerky from Shanghai Be- on overseas (made) products.” excessive levels of lead in paint or CEO Jerry Calabrese said. The Stores Inc. pulled two brands of dog stro Trading, but Solway said Pet Bestervelt said demand is up for new tests have not found cause for in components manufactured in treats in July for testing after cus- Supplies Plus doesn’t stock the af- tests for toxins at the Ann Arbor concern. fected brands. China. tomer concerns that the Chinese facility, which Lionel has outsourced most pro- “This doesn’t appear to be any- Hardest hit have been RC2 Corp. products may have sickened their can handle duction to Asia since 2001, but Cal- pets. thing like the melamine-related re- pharmacologi- in Illinois and California-based abrese said many large retail Harvey Solway, president and call in March, which was much cal products, Mattel Inc. with over 1 million chains that carry Lionel products more widespread,” he said. “This CEO of Farmington Hills-based Pet food and water units apiece. already test the safety of toy prod- appears to be more localized, and products, and Other product recalls tied to ucts before they go on display. Supplies Plus Inc., said his company we’re confident (Pet Supplies Plus) manufactured China have included tires, tooth- “We still did our own testing, gathered statements from manu- isn’t affected.” goods. paste and oral-hygiene products, just to be sure,” he said. “But we facturers and suppliers that its in- Chad Halcom: (313) 446-6796, NSF’s joint and pet food. trust our manufacturers in Asia. ventory meets U.S. safety stan- [email protected] venture in Bestervelt Shanghai, she said, is mostly handling tests of pet food products for melamine, a tox- in that was found in limited doses in U.S. store inventories, as well as diethyl glycol, a toxin that has turned up in some toothpastes and oral-hygiene products. “I couldn’t exactly look at re- sults for every single product we’ve tested, (but) more seem to be coming up safe than not,” she said. “There haven’t been recalls (based on) our tests. Usually our clients can end up dealing with it inter- nally because we’re generally looking at inventory that hasn’t reached retailers yet.” NSF not only tests finished prod- ucts but conducts audits of compo- nents and raw materials along the supply chain. Test and audit re- sults can take days or weeks to complete. Testing isn’t cheap but is an ef- fective way to safeguard against even more expensive recalls or le- gal exposure, said Hal Stratton, an attorney at the Washington of- fice of Detroit- based Dykema Gossett P.L.L.C. and chairman of the U.S. Con- sumer Product Safety Commis- sion from 2002 to Stratton 2006. “Any busi- ness involved in some way with unsafe products — the retailer, the manufacturer, the distributor, the supplier, the importer — they are treated as equally responsible un- der the law,” he said. But, in cases of offshoring or im- ported products, American compa- nies often end up shouldering a greater share of the total liability because their overseas partners are beyond the reach of U.S. agen- cies and courts. In 2004, under Stratton’s tenure at the safety commission, four im- porter companies had to recall 150 million toy jewelry products made in India and sold in vending ma- chines. No retailers or local manu- facturers could be tied to that case, Stratton said. “This doesn’t mean there’s greater risk in offshoring. When you get into offshoring you’re not just sending your production out into some black hole,” he said. “These companies usually know well who they’re doing business with, and can make sure they do the proper testing.” Since late May, 13 companies DETROIT BUSINESS MAIN 08-27-07 A 20 CDB 8/24/2007 5:34 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS August 27, 2007 Penske selective about his event choices

loaned for the Super Bowl and roughly a half-dozen are as- is a public-private venture that plans and coordinates pro- Projects seen as ones signed for the Grand Prix. jects aimed at the betterment of the city. It set up Detroit Belle “Despite being lean, with the right people, we have a cou- Isle Grand Prix L.L.C. to manage the races. ple meetings and we move forward,” Denker said. “We don’t About $8 million is being spent on upgrades to the race- that will better Detroit have committees. No pre-meetings. We don’t have time for course and the 982-acre island for the Grand Prix, which those things. We make it happen.” moved from downtown to the island in 1992. About $6 mil- BY BILL SHEA Denker himself is such an example: “It lion is coming from sponsorship money CRAIN’S DETROIT BUSINESS may mean working several hours into the and the rest through a loan and line of cred- evening to make sure it happens,” he said We don’t have it, Denker said. Sponsors include major au- Automotive entrepreneur Roger Penske has been hailed of ensuring his Penske and his race roles “ tomotive names like Corvette, Firestone and for his chairmanship of Super Bowl XL at Ford Field and for both are handled. committees. No pre- Bosch, and others such as Comerica Bank, reviving the Detroit Belle Isle Grand Prix, but has no plans to Last Sunday, for instance, he said he MotorCity Casino and Compuware. make such efforts a regular part of his corporate universe. spent seven hours walking the 2.1-mile meetings. We don’t The race has guaranteed $100,000 in cash Penske is chairman of Bloomfield Hills-based Penske Belle Island race course with Penske at his this year for the improvement and preser- Corp., a $16.6 billion company whose holdings include trans- side. Penske is known for being involved have time for those vation of the island, and all net proceeds portation, auto sales, truck leasing and motor sports ele- with the smallest details or projects, and from the race will go to the same fund. ments. Last year, it was announced he was leading the effort things. We make it The race had just six months from getting to bring back the Grand Prix, idle since 2001, over this Labor was making improvement suggestions dur- its city approvals to the starting flag to raise Day weekend as part of a five-year deal. ing their walk. happen. sponsorship money. Ann Lang, who works “We have no plans for an event management organiza- “In any business we have, he’s got his ” with Penske as president and CEO of the tion,” said Bud Denker, a Penske senior vice president who fingerprints on it and he wants to know Bud Denker, Penske Corp. downtown partnership, isn’t surprised the is chairman of the Grand Prix. what’s going on. He wants to add value,” fund-raising goal was reached so quickly. Penske, who couldn’t be reached for comment, shouldn’t Denker said. “He’s meticulous in the way be viewed as someone readily available to manage or revi- he wants things to look. He wants things clean. This is a “I’d almost call it the Penske respect. He’s so highly re- talize moribund events, Denker said. Instead, he’ll take on huge undertaking for us.” garded, people will do things for him that they might not do projects that are of interest to him and will better Detroit. Thus far, it appears the public is interested in the under- for anyone else,” she said. “His motives are beyond re- “Who knows what else is in Roger’s mind for what he taking. Denker said more than 44,000 tickets had been sold proach. He only wants the best for the city.” wants to do in the future?” Denker asked, adding that he as of Friday, leaving about 4,000 remaining, and he expected Planning for next year will begin shortly after this year’s doesn’t know whether Penske has been approached about those to be gone by the time of the races. races, said Merrill Cain, public and community relations di- any future projects. The Grand Prix, which includes both American Le Mans rector for the Grand Prix. In the meantime, Penske has been willing to leverage his and IndyCar cars, is being organized and promoted by the “We’ve kinda thought ahead about what additions we company’s assets to make sure the Grand Prix comes off as Downtown Detroit Partnership, of which Penske is chairman, want to do,” he said, but declined to go into detail. well as the Super Bowl. About a dozen Penske staffers were but many key personnel are from Penske. The partnership Bill Shea: (313) 446-1626, [email protected]

Penske: Passion for city POLISHING A LANDMARK Part of the $8 million in capital investments on Belle ■ From Page 1 Isle by the organizers of the Detroit Belle Isle Grand Prix has been spent polishing the island’s nearly century-old brick facades on the new concrete Penske, a former racer of consider- casino. walls, a new children’s play- able skill, believes he has opened The Albert Kahn-designed casino, which opened in ground. And those are just the per- those up, too, particularly the first, 1908 but is now used for events and meetings, got a manent modifications that will be third and seventh turns, and even $110,000 cleanup that included painting, replacement in place when the IndyCar Series made adjustments after Penske Rac- fixtures, flooring and general upkeep. Regional General and the American Le Mans Series ing driver Helio Castroneves tested Contracting in Plymouth oversaw the work. hit town on Labor Day weekend. there July 25. Castroneves won the The two-story casino is near the island’s entrance, east There will be corporate chalets, final two CART races on the 2.346- of the Scott Fountain. It replaced a casino built in 1887. some of the classiest advertising mile (now 2.125) temporary circuit More photos of the casino can be viewed at displays seen in the sport and the in 2000 and 2001. www.crainsdetroit.com. same Penske class that benefited The new concrete will cover spec- — Bill Shea the 2006 Super Bowl at nearby tator and sponsor areas that used to Ford Field. become mud bogs at the first sign of “I’m giving everything I can to moisture. Franchitti remembers help the city,” he said. seeing people covered in filth and It bears noting that Penske did- knows it wasn’t always the best n’t make that last statement to pad place for corporate hospitality. a reporter’s notebook. Rather, he Of course, Penske wrote the book said it to IndyCar drivers Dario on entertaining clients, and he has Franchitti, the Indianapolis 500 made sure spiffy areas are found winner, and Danica Patrick when easily. Tents and chalets will be col- he asked them to attend fundrais- or-coded and lined with white pick- ers for the Belle Isle project, which et fences. Seventy shuttle buses will has a “multiyear” deal with the provide transportation. ALMS and a five-year contract Plus, 250 dead trees have been with the Indy Racing League with an removed, and Penske’s group will Improvements to the Belle Isle Casino are visible in the main lobby (upper right) and exterior column and facade option for a four-year extension. raise tree foliage to 14 feet off the (lower right and left). The view from the casino (above) reveals the landscape. It didn’t take much convincing ground to give people clear views for Franchitti, Patrick and others of the Detroit River on either side. to jump onboard. They took one And as for the racing, Castro- look at Penske’s eyes and plans neves said it should be an improve- during an informal presentation ment over years past. and knew that his effort and moti- “The course is similar to what I vation are genuine. remember, but there’s a new sur- “That’s great,” Franchitti said face, new concrete, and the corners at least four times to no one in par- are wider, which should make for ticular as Penske spoke. more exciting racing,” he said. Turning to a reporter in Penske predicts the ALMS race Penske’s motor home, Franchitti — with different car classes featur- said, “It’s pretty awesome, isn’t it? ing racers running at larger speed It was a pretty good place to race differentials than the Indy cars — before, but it’s going to be really will benefit from the course adjust- good now.” ments, too. The wider backstretch Franchitti raced on the track five figures to allow for some on-track times in CART, winning in 1999. He fighting. remembers how tight the back- “This should really be terrific,” stretch was and how blind some of he said. “I can’t wait.” the corners were. They aren’t now. From AutoWeek PHOTOS BY HEATHER ROUSSEAU DETROIT BUSINESS MAIN 08-27-07 A 21 CDB 8/24/2007 4:38 PM Page 1

August 27, 2007 CRAIN’S DETROIT BUSINESS Page 21 QuatRx: Company preps for IPO or acquisition www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or quartered in Palo Alto, Calif., and Seattle. Fra- A fourth compound, Asord, a treatment for The money, said Zerbe, will finish Phase III [email protected] ASSOCIATE PUBLISHER Christopher Crain, (313) zier and TL Ventures of Wayne, Pa., each invest- psoriasis, was recently licensed to Pennsylvania- studies of Ophena, finish Phase II studies and 446-1645 or [email protected] ed $1.5 million to launch QuatRx in 2000. Both based CollaGenex Pharmaceuticals Inc. (Nasdaq: begin Phase III studies of fispemifene and fin- EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] have been part of each round of fundraising CGPI) for development and commercialization. ish Phase I studies of QRX-431. MANAGING EDITOR Andy Chapelle, (313) 446- since then. QuatRx is in pre-clinical development of two None of QuatRx’s investors are Michigan- 0402 or [email protected] WEB GENERAL MANAGER Michael Lee, (313) Peter Reikes is managing director in charge compounds to treat endocrine disorders in based VC firms. 446-0416 or [email protected] of health care investments for the New York women. Mary Campbell, president of the Michigan Ven- ASSISTANT MANAGING EDITOR/FOCUS Jennette City-based investment banking firm of Cowen & The company has 53 employees, including 30 ture Capital Association and co-founder and gener- Smith, (313) 446-1622 or [email protected] BUSINESS LIVES EDITOR Shawn Selby, (313) Co. L.L.C., which was going to be one of the un- at a research facility in Turku, Finland, ac- al partner of Ann Arbor-based EDF Ventures, the 446-1654 or [email protected] derwriters of an IPO last year. QuatRx filed quired when QuatRx bought Hormos Medical state’s oldest VC firm, blamed bad timing for the GRAPHICS EDITOR Nancy Clark, (313) 446-1608 with the U.S. Securities and Exchange Commission Corp. in 2005. lack of an investment by her firm. or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 in February, then withdrew the filing in July The founding QuatRx team are former execu- “We met with them in the very early going, but or [email protected] after the market for biotech IPOs cooled off. tives at Parke-Davis and Co. in Ann Arbor who we were just raising our third DATA EDITOR Anne Marks, (313) 446-0418 or [email protected] “They are starting to attract a lot of attention left the company after it was sold to Pfizer Inc. in fund and we didn’t have any WEB EDITOR Kevin Hill, (313) 446-0473 or because of the results of their clinical trials. It 2000. They include Zerbe, who previously had money to invest. Afterwards, [email protected] WEB DESIGNER/PRODUCER Ai-Ting Huang, is a company that we were quite enthusiastic been managing director of Eli Lilly’s research they needed more money than (313) 446-0403, [email protected] about last year, and they’ve made substantial center in England and a senior vice president at we could afford,” said Camp- EDITORIAL SUPPORT Anita Duncan, (313) progress since then, so it’s hard to imagine not Parke-Davis; COO Christopher Nicholas, who bell. 446-0329; Joanne Scharich, (313) 446-0419 NEWSROOM (313) 446-0329, FAX (313) 446- being more excited today. Their story is was vice president of global marketing at “I follow them from afar, 1687 TIP LINE (313) 446-6766 stronger today than it was,” Reikes said. Parke-Davis; and chief science officer Stuart and I’ve heard only positive REPORTERS Reikes said his company currently has no in- Dombey, a vice president of research. things about them and their Brent Snavely, senior reporter: Covers auto strategy. They’re very highly suppliers, steel and restaurants. (313) 446-0405 volvement with QuatRx but would like to be in- Last year’s aborted IPO led to May’s $44 mil- or [email protected]. volved with an IPO or in helping find a buyer. lion round of venture capital. It was led by Ven- Campbell regarded,” said Campbell. “I Robert Ankeny: Covers the city of Detroit, Wayne was excited for them when County government, and law. (313) 446-0404 or “That would be up to them, but we certainly rock, co-located in New York City and Menlo [email protected]. would be very interested in continuing our re- Park., Calif., a first-time investor, and included they brought in Venrock, which is one of the Sherri Begin: Covers nonprofits and education. lationship with them. They’re working in areas 14 VC firms. Another new investor was Catella oldest institutional investors on the planet. (313) 446-1694 or [email protected] Andrew Dietderich: Covers health care, that clearly have very large unmet needs.” Healthcare, a VC firm in Sweden. Venrock has just raised a new fund and they transportation, international business and State of Michigan Retirement System have a lot of dry powder left, and if they like biotech. (313) 446-0315 or Zerbe said the company is working to be pre- The in- [email protected]. pared for either a sale or initial public offering. vested for the third time, through its position Michigan, that might be good for others of us. Daniel Duggan: Covers real estate and hospitality. “We are working with banks to position our- as the primary limited partner in Chicago- “Quite frankly, it’s easier to get an investor (313) 446-0414 or [email protected] Chad Halcom: Covers services, environment and selves for when the market is right, but we based Stockwell Capital L.L.C. Its Stockwell Capital interested in Ann Arbor if they’re already com- Oakland and Macomb counties. (313) 446-6796 have no specific timeline,” he said. And, “Big Fund I has invested $486 million in 39 companies ing here, anyway. I can’t tell you how impor- or [email protected]. tant QuatRx is as a lightning rod.” Sheena Harrison: Covers small business, retail Pharma is always interested in companies with and a total of $2.3 million in QuatRx. and nonautomotive manufacturing. (313) 446- good compounds. There’s nothing imminent, “For a company of this size, their roster of Venrock was founded by Laurance Rocke- 0325 or [email protected]. feller, the fourth of the six children of John D. Tom Henderson: Covers banking, finance and but we’ve had discussions.” venture capital investors is a Who’s Who,” said technology. (313) 446-0337 or QuatRx is in Phase II studies of fispemifene, Tom Hufnagel, a principal in Stockwell. Rockefeller, in 1969. It has invested $1.9 billion in [email protected]. 400 companies that have resulted in 122 IPOs and Bill Shea: Covers media, advertising and a drug for men that stimulates production of Other prominent investors in the last round marketing, entertainment, the business of sports, testosterone, and is in Phase I studies of a com- included Baltimore-based T. Rowe Price, Menlo 111 mergers or acquisitions. Companies it helped and Livingston and Washtenaw counties. (313) 446-1626 or [email protected] pound known for now as QRX-431, which low- Park, Calif.-based InterWest Partners and San launch include Apple Computer Inc. and Intel Corp. Tom Henderson: (313) 446-0337, thenderson LANSING BUREAU ers low-density lipoprotein, or LDL, the so- Francisco-based Thomas Weisel Healthcare Ven- Amy Lane: Covers business issues at the Capitol, called bad cholesterol, and treats obesity. ture Partners L.P. @crain.com telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) Achatz: 393-0997 Bigger slice Bakery chain tries franchise ADVERTISING SALES Jeff Anderson, Terri Engstrom, Matthew J. Langan, Tamara Rokowski, ■ From Page 3 Cathy Ross, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) stores in addition to Whole Foods stores have also done well, (323) 370-2477 CLASSIFIED MANAGER Melissa McKay, (313) stores in Michigan, Ohio and Illi- Achatz said. strategy to expand 446-1692 nois. The company also has retail “Should we open 50 more little MARKETING DIRECTOR Michelle Minor stores in Armada, Troy, Oxford, stores and franchise them, or EVENTS MANAGER Nicole Wiedling BY CHAD HALCOM Chicago and Indianapolis could MARKETING ASSISTANT Jennifer Dunn Shelby Township and Sterling crack into the frozen-pie market CRAIN’S DETROIT BUSINESS each support more. MARKETING ARTIST Sylvia Kolaski Heights. with 2,400 Kroger stores across The Parents are also consider- SALES SUPPORT Suzanne Janik, Andrea “Those first few years, we were the nation?” she said. “We still Beckham, YahNica Crawford Grand Traverse Pie Co. hopes to do ing locations in Farmington Hills CIRCULATION Candice Yopp, Manager. more than doubling in size every haven’t decided.” with pie what Panera Bread Co. and West Bloomfield Township. PRODUCTION MANAGER Wendy Kobylarz year,” she said. “Over the last The growth of Achatz brings does with bread: make it the signa- Parent said the store will have PRODUCTION SUPERVISOR Larry Williams, five years, growth has slowed to challenges many mom-and-pop (313) 446-0301 ture food for a chain of bakery capacity to produce 700 to 1,800 SUBSCRIPTIONS (313) 446-0450, double-digits.” businesses face when they ex- cafés nationwide. pies a day and will take over pro- (888) 909-9111 Achatz credits success to care pand: maintaining quality and TO FIND A DATE A STORY WAS PUBLISHED: That concept was a fast sell to duction of the pies Grand Traverse (313) 446-0367 or e-mail the Crain Information she’s put into the pies. The crusts consistency of product, said Dar- John Parent, owner of a new fran- Pie sells at nearby grocers. Center at [email protected]. are crimped by hand, rather than ren Tristano, executive vice pres- chise café opening in Troy. After their start in 1996, Busley CRAIN’S DETROIT BUSINESS IS PUBLISHED BY by a machine. Fruit and butter ident with Technomic, a food in- CRAIN COMMUNICATIONS INC. “My wife and I had a meal at the and his wife, Denise, for years op- CHAIRMAN Keith E. Crain come from local producers. dustry consulting firm based in location in Petoskey, and we hadn’t erated the Traverse City store and PRESIDENT Rance Crain She refuses to change those Chicago. heard of (the stores) before,” Parent developed wholesale connections SECRETARY Merrilee Crain standards. “The biggest pitfall is that they said. “The owner there came out to grocers such as Troy-based Holly- TREASURER Mary Kay Crain Executive Vice President/Operations “I go to the grocery stores and grow so fast, they’re unable to and talked with us, asking how the wood Market or Westborn Market in William A. Morrow read the ingredients of pies,” she maintain the level of quality,” he meal was; we got to talking about Dearborn. Around 2003, Busley Group Vice President/Technology, Manufacturing, Circulation said. “You read that list and it’s said. “As you add people, it’s the place and by the time I was leav- said, the company shifted to the Robert C. Adams gross. Chemicals like that don’t hard to train them to put in the ing, I was on the phone finding out café franchise strategy. Vice President/Production & Manufacturing belong in the food chain.” care that an owner would.” more about franchises.” Dave Kamis The company will have nine Corporate Director/Circulation Yet, moving to the new facility Examples of companies that A Traverse City-based pie mak- franchises and three corporate Patrick Sheposh means broadening every aspect slipped, he said, are Subway or er and bakery chain, Grand Tra- stores in Michigan, plus a fran- G.D. Crain Jr. Founder (1885-1973) of the business. Weekly pie pro- Burger King, which lost quality as verse Pie will have its third De- chise that opened this month in Mrs. G.D. Crain Jr. Chairman (1911-1996) duction will go from an average they expanded. troit area franchise when the EDITORIAL & BUSINESS OFFICES: Terre Haute, Ind. The Detroit sub- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) of 5,000 to 15,000, with the ability “A good example of keeping Parent café opens in October. Bak- urbs mark the company’s first for- 446-6000 to crank it up to 25,000 during the that quality level up is Cheese- eries in Sterling Heights and Ann Cable address: TWX 248-221-5122 AUTNEW DET ay into a major population center. Subscriptions $59 one year, $98 two years. Out holidays. cake Factory,” he said. “They Arbor opened within the past year, Franchise fees to open a Grand of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state The next question for the have facilities on the East Coast and a fourth site in Plymouth is Traverse Pie store are $25,000, and rate for surface mail. Achatz family is what to do with and the West Coast; they’re mass coming next spring. the company advises franchisees Reprints: For inquiries call the reprints department at: (800) 494-9051, Ext. 144 , or at all the pies being produced. producing but have that quality.” The site is part of an agreement to have total investment capital of [email protected] They can freeze pies and send A positive for Achatz, Tristano for five franchise locations in Oak- $400,000-500,000. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the them to grocery stores to be said, is being organic. land County over five years. Par- Roughly $1 million in company second week in August by Crain Communications cooked and sold. National inter- “Natural and organic is on Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. ent also owns Clawson-based secu- revenue comes from the Traverse Periodicals postage paid at Detroit, MI and est is growing, Achatz said, with trend right now,” he said. “People rity software company Wilson City store; Busley said with fran- additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, offers from Kroger to distribute to hear about problems with food Technologies Inc. chises and wholesale distribution Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in 2,400 stores around the country, coming from China, and they like Grand Traverse Pie President the company is on pace to make U.S.A. as well as from the Florida chain food that’s grown locally.” Michael Busley figures the Detroit $15 million revenue for 2007. Entire contents copyright 2007 by Crain Communications Inc. All rights reserved. of Publix grocery stores. Daniel Duggan: (313) 446-0414, market is solid enough for at least Chad Halcom: (313) 446-6796, Reproduction or use of editorial content in any However, the company’s retail [email protected] 10 stores, while other cities such as [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 08-27-07 A 22 CDB 8/24/2007 6:24 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS August 27, 2007 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG. 18-24

National Association of Invest- Granholm said Tuesday. the new wing, and Taubman ment Clubs for more than 30 Fieger, partner On Thursday, Granholm said it expects to sign two years. He died of congestive said German engineering other restaurants. No dancing heart failure. He was indicted on and development company buried in Great Lakes Na- EDAG Engineering and Design OTHER NEWS tional Cemetery, Holly. AG plans to spend $7 million Bob Whiting, manager of campaign- to expand its operations in The Sault Ste. Marie Tribe around the sales and convention show Auburn Hills and Troy, of Chippewa Indians reaf- services at Cobo, said Little- adding 140 jobs. firmed a decision to oust ton was “a sergeant until finance charges tribal chairman Aaron Pay- the end, as he had been in ment as chairman of the the Army. We knew him as New stores coming to eoffrey Fieger and Ver- Greektown Casino Board of Di- ornery, but lovable.” ‘Ultra’ issue non Johnson Twelve Oaks Mall rectors by a 7-3 vote on Tues- , both at- day, although he retains a G torneys and officers Three retailers plan to ow “ultra” is an “ul- agent, did not return calls Talking the talk makes seat on the casino board. of Southfield-based Fieger, make their Michigan debut tralounge?” for comment last week. Michigan Bureau of State big difference Fieger, Kenney & Johnson at the new, 97,000-square- H That question P.C., were indicted Tuesday Lottery official Tom Weber foot wing of Twelve Oaks could be answered for two Stuttgart-based Prion was named acting lottery Cobo ‘iconic personality’ by a federal grand jury in Mall in Novi when it opens area night spots this fall GbmH, a German communi- commissioner, filling a post Detroit on charges they vio- Sept. 28, according to mall when a federal trademark cations and information- dies at 89 lated campaign laws during owner Taubman Centers Inc. vacated by Commissioner infringement lawsuit pend- technology firm, decided to the 2004 presidential race, They are Metropark, an Gary Peters on Aug. 10. ing for almost 16 months Cobo Center lost an iconic locate its North American conspiring to make more apparel and accessories Weber has been the lot- goes to a summary judg- figure when Leon “Sarge” Lit- headquarters office, Prion than $125,000 in illegal cam- store that features live mu- tery’s deputy commissioner ment hearing before U.S. tleton, died Aug. 19 at 89. USA Inc., in Novi this year in paign contributions to the sic, art and fashion perfor- of marketing since January District Judge Marianne Littleton was dockmaster large part to the German flu- 2004 presidential campaign mances; aerie by American 2001. Battani in Detroit. at Cobo, ramrodding trucks ency of the Detroit Regional of North Carolina Sen. John Eagle, which sells lingerie Detroit-based Corner- Posh Entertainment Inc., that delivered displays to Economic Partnership’s Dean Edwards. and sleepwear; and Moon- stone Schools said it had which operated Posh Night- the many Johnson. Fieger, 56, and Johnson, struck Chocolate Cafe. reached a $1.2 million schol- club & Ultralounge in Fern- shows there Eshan Shariff, 45, are accused of making A 165,000-square-foot arship fundraising goal dale, sued Eton Street Restau- for nearly four Prion business false statements and ob- Nordstrom will anchor the thanks to its “Be a Tiger For rant Inc., operating Big Rock decades. development Even after struction of justice, a U.S. wing. Kids” promotion with the Chop House in Birmingham, manager in the Department of Justice state- Detroit Tigers. Cornerstone with Gotrocks Ultra Lounge on losing a leg to U.S., said his medical com- ment said Friday. sold more than 13,000 tickets its second floor. boss, managing Neither Fieger nor John- Gas rate changes OK’d to Tuesday’s game against Posh alleged in its May 1, plications sev- partner Christo- son was immediately avail- The Michigan Public Ser- the Cleveland Indians. 2006, complaint that it was eral years ago, pher Frim, com- able for comment, but vice Commission on Tuesday The state’s “Pure first to bring the “Ultra- Littleton con- mented that Fieger will be represented approved a $49.8 million Michigan” tourism advertis- lounge” concept to the De- tinued to di- with Johnson’s by high profile criminal de- natural gas rate increase ing campaign, developed by troit area in December 2003 rect traffic for efforts “it took fense attorney Gerry Spence, for Consumers Energy Co., the Birmingham office of and registered it as a ser- complicated only one week of The Spence Law Firm in compared with the $88 mil- McCann Erickson, has been vice mark with the state on events like the when elsewhere Jackson, Wyoming. lion increase originally re- named the top state cam- June 7, 2004. North American it would have “Mr. Fieger will absolute- quested. paign of its type in the coun- They accuse Eton Street’s International easily been two ly tell the court that he is The initial request includ- try by the Travel Industry Asso- Gotrocks of marketing itself Auto Show, us- Littleton was considered a or three not guilty,” Spence said. ed $9.3 million in proposed ciation of America and also as an Ultralounge and in- ing a golf cart dedicated worker. months,” to According to his Web spending on an energy effi- took top honors from the as- fringing on the Posh regis- to get around. hire local lawyers and ac- Tom Tuskey, Cobo Center site, Spence has never lost a ciency program, an aspect sociation for the best state tered style under a variety of countants, and lease office criminal case and hasn’t director, called Littleton the PSC did not adopt in tourism TV commercial. federal and state laws. space. lost a civil case since 1969. “an iconic personality at Tuesday’s order and plans The new $5 bill will be Eton’s lawyers, Troy- When they learned that The Justice Department Cobo,” and said “there was to rule on in the future. digitally unveiled at 9 a.m. based Vandeveer Garzia P.C., Johnson, a senior director of statement says that “unbe- In a news release, the Sept. 20 at www.money in asking the court to dis- no one more dedicated to global business development knownst to Senator Ed- commission said the in- factory.gov/newmoney. It’s miss the lawsuit, claim that the notion that ‘the show at the partnership who was wards’ campaign” Fieger crease reflects rising operat- the first such digital unveil- “ultralounge” is a generic must go on.’ raised in Germany, could ac- and Johnson had more than ing costs and will translate ing in U.S. history. term, not entitled to trade- “In Leon’s words, ‘the tually “speak their lan- 60 “straw donors” make mark protection. show must go in, and it’s guage,” it cinched the deal, to an approximate $2.36-a- The Southeastern contributions of $2,000 each month increase for a typical Try Googling the term gotta be done right, and my Shariff said. Michigan chapter of the — then the maximum al- residential customer. and you’ll get about 716,000 way is probably the best “Sometimes in finance American Red Cross has lowable per donor — but The commission also ap- hits for one of the three way to do it,’ ” Tuskey said. and accounting, terms are opened a training center for the money was actually proved a settlement with forms of “ultralounge,” ei- Littleton had worked at difficult to translate,” he nursing assistants in De- paid by the law firm rather Michigan Consolidated Gas ther as one word, two words said, “and his ability to troit’s Palms office building. Cobo since 1968. than the named donors. Co., authorizing MichCon to or hyphenated. speak German was a big Oakland County Cir- Littleton, of Clawson, Other names mentioned sell excess natural gas from There’s even an “ul- was an independent con- help.” Prion, has 100 em- cuit Judge Denise Langford as part of a Fieger defense one of its storage fields and tralounge” in Ann Arbor: tractor who worked for ployees worldwide, in Ger- Morris dismissed a breach of team include Harvard deliver other gas to cus- The Habitat Ultralounge at We- Cobo convention contrac- many, Switzerland, France contract lawsuit filed by criminal law professor Alan tomers at a discount. As a ber’s Restaurant. tors. A U.S. Army veteran and India, provides consult- Julie Roehm against Wal-Mart Dershowitz and former State result, the utility expects a Aubrey Tobin, West of both World War II and ing in the transportation Stores Inc. after it fired her as Bar of Michigan president typical residential cus- Bloomfield Township-based the Korean conflict, he had and engine manufacturing senior vice president in De- Tom Cranmer of Miller, Can- tomer to pay $45 less over Posh attorney and registered run the mail room for the industries. field, Paddock and Stone plc cember. Morris ruled the course of the 2007-08 in Detroit. Roehm, a former Daimler- heating season, compared Chrysler executive, should with the 2006-07 season. file in Arkansas, where Wal- Granholm announces jobs Mart is based and she lives. from European trip Fairlane: Saks Off 5th to The Mall at Partridge Ovshinsky ahead of the times Creek, a new shopping cen- Gov. Jennifer Granholm on close, expansion planned Stanford Ovshinsky, for whom the featured in the documentary “Who ter being developed by term “genius” is applied liberally and Killed the Electric Car?” Monday announced that Saks Off 5th, a division of Taubman Centers Inc., will seriously, retired last week from his (tinyurl.com/n94yu) released last Swedish firm Trelleborg Auto- Saks Fifth Avenue offering dis- hold a job fair 9 a.m.-6 p.m. chief scientist position and board year. motive plans to invest $10.2 count merchandise will August 28 and 9 a.m.-2 p.m. membership at the company he Late last year, the Wall Street Journal million in a new technical close its store at Fairlane August 29 at the Macomb founded, Rochester Hills-based profiled his life and work center in Northville Town- Town Center by year-end, ac- Cultural Center in Clinton Energy Conversion Devices. (tinyurl.com/27nw6g), including his ship that will employ 32. cording to a statement Township in hopes of fill- The breadth of the 84-year-old long personal and professional The center will be used Thursday from the mall’s ing about 1,000 positions. Ovshinsky’s work is astonishing. partnership with his wife, biochemist for advanced engineering Rechargeable nickel-metal-hydride Iris Ovshinsky. owner, Taubman Centers Inc. and product development. Taubman said the site batteries. Hydrogen fuel cells. The important quote? “We wanted to OBITUARIES Also, Swedish industrial will be demolished to make Computer memory. Solar-power start new industries and solve serious products. A search of patents on the WEB WORLD societal problems.” As that vision is equipment manufacturer room for a 25,000-square-foot William Bostick, former U.S. Patent & Trademark Office Web Michael Lee being borne out today with the push Atlas Copco A.B. plans to add dining and entertainment administrator and secre- site turns up 349 hits to create new sources of energy, it’s clear they 30 jobs in engineering, sales wing to open by fall 2008. tary at the Detroit Institute (tinyurl.com/ys5389). were ahead of their time, but that time has and marketing at its opera- P.F. Chang’s China Bistro has of Arts, died of heart failure His later titles include “movie star”; he was arrived. tions in Auburn Hills, committed to a location at Aug. 14. He was 94. DBpageAD.qxd 8/1/2007 6:57 PM Page 1

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