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DETROIT BUSINESS MAIN 10-16-06 A 1 CDB 10/13/2006 6:08 PM Page 1

http://www.crainsdetroit.com Vol. 22, No. 42 OCTOBER 16 – 22, 2006 $1.50 a copy; $59 a year

THIS JUST IN Election 2006: The SBT Arts organizations merge The Lansing-based Michi- gan Association of Communi- ty Arts Agencies on Oct. 1 merged into Southfield- So who based ArtServe Michigan, the Consensus is elusive organizations said Friday. The merger is not expected to affect employees, said Donna Edwards, Art- pays SBT? Serve education and communications director. Barbara Kratchman, who was president and CEO of on retooling taxes Impact isn’t ArtServe, is serving as interim president of the combined organization operat- evenly spread ing under the same name. Individuals REPLACING $1.9 BILLION? BY AMY LANE She plans to retire once Art- Asked how they would replace the revenue lost from the single CAPITOL CORRESPONDENT Serve’s board of directors shouldn’t take business tax, survey respondents said they would favor: has identified a permanent LANSING — Michigan businesses president through a nation- hit, survey says clearly detest the state’s $1.9 billion al search, Edwards said. 55.5% 15.2% single-business tax. Debbie Mikula, who had A A tax that would But just over half been executive director of BY AMY LANE replacement generate more of them actually pay INSIDE the association, now is vice CAPITOL CORRESPONDENT tax that revenue than it. ■ Will state president and COO of Art- neither the SBT. And when it LANSING — When it comes to increases meet deadline Serve and will be consid- comes time to replacing Michigan’s $1.9 billion nor for a tax ered as a finalist for presi- reshuffle business- single-business tax, many tax pro- decreases proposal? dent, Edwards said. tax burden and allo- fessionals and the battling guber- overall 29.3% Page 6. — Sherri Begin cate a new replace- ■ natorial candidates agree on one state Lack of revenue. A replacement tax ment tax among personal- point: Individuals should not pay that generates less Michigan indus- property tax a Airport Authority takes more sales or income tax to lighten revenue than the SBT. tries, the issue of boon steps for ADA compliance businesses’ tax load. winners and losers elsewhere. But opinions diverge on the is- Page 36. Wayne County Airport is paramount. The sue of whether Michigan should Authority has agreed to This story is part of a series of surveys co-sponsored by Crain’s Detroit “It’s a killer. No cut business taxes overall. And make several changes to Business and Honigman Miller Schwartz and Cohn L.L.P. on key Michigan matter what new idea you come up that’s just one illustration of the comply with the Ameri- business issues. Full results are available under the “Features” heading with, and you could list all the good complex and high-stakes job cans with Disabilities Act, at www.crainsdetroit.com or www.honigman.com. characteristics that a tax should Michigan faces in overhauling its said Richard Bernstein, a have, and follow those, you’re still go- business-tax structure. Farmington Hills attorney. ing to have a bunch of winners and “It’s going to be difficult, … very For a transcript of a Crain’s roundtable on business taxes Bernstein in June threat- losers. And that makes this task very ened to sue the authority See Survey, Page 37 and a comparison of tax proposals, see www.crainsdetroit.com. See Tax, Page 36 on behalf of the Michigan Paralyzed Veterans of America for discriminating against disabled passengers. According to an Oct. 9 letter to Bernstein from Mary Lou Posa, vice presi- Turnaround job dent and associate general counsel for the authority, “immediate steps” taken by the authority include Challenge: Making Tigers’ overnight success last designating two employees as ADA coordinators, and BY JEFF NASH keep the Tigers on providing special-needs CRAIN NEWS SERVICE PITCHING top, both on the field services information on and off. the authority’s Web site. Steve Quinn’s looking at a fat pitch PROSPECTS “In baseball, right down the middle. The authority also agreed Tigers on cusp of there’s the baseball to undergo an ADA audit by For the first time in his seven years as endorsement operation and the an independent agency and CFO of the Detroit Tigers, Quinn’s baseball deals, Page 34. business operation,” is considering the establish- club has reached the playoffs, and it said Quinn, who, be- ment of an independent ad- could yet win the World Series. fore joining the Tigers in 1997, was a pub- visory committee, another It’s a turnaround that industry experts lic accountant with Coopers & Lybrand, of Bernstein’s demands. said could add $50 million or more in rev- which is now part of PricewaterhouseCoop- — Michelle Martinez DWIGHT CENDROWSKI enue next year alone. ers. “And there’s a balancing act between Tigers CFO Steve Quinn has the big — if enjoyable — challenge of See This Just In, Page 2 But with winning comes a major chal- figuring out how to maximize returns for a resurgent Tigers team. lenge: How to use all that new cash to See Tigers, Page 34

CRAIN’S LISTS Business owners learn Staffing firms, Page 22 NEWSPAPER by the book, Page 11 Radio stations, Page 24 DETROIT BUSINESS MAIN 10-16-06 A 2 CDB 10/13/2006 6:10 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 16, 2006

Jury rules against plaintiffs liance in order to share an execu- lions of photos in the world- lion per year. THIS JUST IN tive director and collaborate on renowned Bettmann Archive into a Complete Quality Installation Ser- in condo design lawsuit programming and resources for digital database. vices received a one-year contract ■ From Page 1 A jury in U.S. District Court in their members, according to a The archive, begun by Otto with options for four one-year re- Detroit on Wednesday ruled statement released Friday. Bettmann in 1936 after he left newals. The contract means CQIS Rock sponsors JA program against Macomb County develop- Members of the AABA include Germany for New York City, is would manage GSA moves in six ers Michael Chirco and Dominic the Black Women Contracting Asso- considered the best collection of states: Michigan, Illinois, Indi- The dedication for the new 20th century historical images in ana, Minnesota, Ohio, and Wis- Moceri in their 2001 lawsuit ciation, the Booker T. Washington Rock Financial Junior Achievement the world, including iconic pho- consin. The GSA handles the real against Bernard Glieberman and Business Association, the Detroit Finance Park, in a renovated tos of the Beatles, Albert Ein- estate needs of federal agencies. his Novi-based Crosswinds Commu- Black Chamber of Commerce and building at 577 E. Larned, will stein, Rosa Parks, Marilyn Mon- John Green, CQIS president, nities Inc. the National Association of Black take place Thursday afternoon roe and the Kennedys. said the company will probably At issue were design plans on Automotive Suppliers. and include appearances by De- The archive is owned by Seat- add another 10 to 15 employees to 12-unit condominiums with at- The alliance’s chairman is troit Mayor Kwame Kilpatrick tle-based Corbis Corp., which was handle the work, beyond the con- tached garages at the ends and a William Brooks, who is chairman, and Rock Chairman Dan Gilbert. president and CEO Detroit-based founded in 1989 by Microsoft tractors hired for specific moves. floor plan that provided for a The Finance Park will offer United American Health Care Corp. founder Bill Gates. Green said the company won the high density of units. Moceri and four- to five-week programs for City Connect Detroit will provide Terms of the multiyear project work largely because of the soft- Chirco had sued for $17 million, middle school students, teaching office space and services such as were not announced. The goal is ware it developed that eliminates arguing that Glieberman, Charter them such things as how to open staffing and grant-writing for the to simplify the retrieval of images communications gaps at various Homes Inc. and American Heritage a bank account, how credit works collaborative for its first 60 to 90 by category, subject, date and stages of planning and executing Homes L.L.C. had replicated a de- and how to buy a home, insur- days, according to the statement. photographer. a move. The exact size of the con- sign for which Moceri and Chirco ance, car and so forth. The alliance’s first event will — Tom Henderson tract will depend how often the had exclusive rights. There will also be one-day ses- be a breakfast with Gov. Jennifer GSA hires CQIS for moves; it has Following a 10-day trial before sions where kids are given a fic- Granholm on Oct. 18, followed by set a maximum spending limit of Judge Denise Page Hood, the jury Relocation firm wins contract tional persona, including an oc- a breakfast with Dick DeVos on $32 million, Green said. cupation, spouse and children. found that Glieberman had not Oct. 24. Both events are free and A Belleville-based relocation- CQIS will also likely need to The kids must then create a real- infringed any copyrights. will be 7:30-9 a.m. at Second management company was add an additional office, probably istic budget, and in the course of Glieberman’s attorney Fred Ebenezer Church, 2760 E. Grand awarded a major contract by the somewhere in west Michigan or their day at the Finance Park, Elias of Elias & Elias P.C. in West Blvd. in Detroit. For more infor- General Services Administration the Chicago area, Green said. conduct 10 financial transactions Bloomfield Township said he mation, call (313) 887-6507. that could be worth up to $32 mil- — Jennette Smith at various on-site storefronts. would file to recover attorney — Sheena Harrison The storefronts are mock of- fees and costs. Chirco attorney fices or showrooms of Finance Stephen Wasinger of Royal Oak Park sponsors — Rock, Pulte did not return two phone calls Local firm to digitize CORRECTIONS Homes, General Motors, Comerica, and one e-mail Friday. Bettmann photo info ■ In a Page 3 story in the Oct. 9 issue, Eileen Martin was incorrectly AAA, Allstate, Humana of Michigan, — Robert Ankeny identified as chairman of Serenity Services’ board. She is chairman DTE, AT&T and the Somerset Collec- CompuPacific International Ltd., a of the Women’s Justice Center’s board of directors. tion. Rock contributed about $1 Black biz groups create alliance Plymouth-based IT firm, an- ■ A story on Page 6 of the Oct. 9 edition should have said that a Low- million toward construction of nounced Friday it has been er Woodward Housing Fund study showed 2005 median household, not the building and to sponsor its Four metro Detroit black busi- awarded the contract to convert individual, income in downtown Detroit was $19,800; tri-county anchor storefront. ness associations have formed 7.5 million index cards contain- median household income was $54,700. — Tom Henderson the African American Business Al- ing information about the mil- DETROIT BUSINESS MAIN 10-16-06 A 3 CDB 10/13/2006 6:07 PM Page 1

October 16, 2006 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Legal and political issues revolving FTC: Listing services around La Shish INDEX founder Talal Chahine have led Small Biz Solutions: two franchisees to Venture capital offers fuel for fast cut ties with his growth — but company. comes with strings attached. restrain competition Page 16. Inventory giant: La Shish Ownership change leads to acquisitions for Realcomp II, MiRealSource cited in MLS dispute RGIS. Page 26. Stem-cell debate: Panel franchisees BY JENNETTE SMITH ker to list the home but may pay a reduced commission at MichBio gathering says CRAIN’S DETROIT BUSINESS or no commission if the owner sells the property with- ban hurts state’s out further help. A traditional brokerage arrangement competitiveness. The Federal Trade Commission charged two area multi- is called an exclusive right to sell. Page 29. sever ties ple-listing services Thursday with illegally restraining Realcomp II said in a statement is- competition by limiting access to low-cost brokers. sued Sept. 18 that it would not revise These organizations appear in this week’s Crain’s Detroit Business: Realcomp II, which is owned by Realtor boards and its rules and organizational tenets associations, and MiRealSource, which is owned by real based on the FTC’s recommenda- Action Inventory Service Inc...... 26 from parent estate professionals, both face administrative com- tions. In September, Realcomp re- Altarum Institute ...... 27 plaints. These will be heard by an administrative law Ann Arbor IT Zone ...... 18 jected the FTC’s proposed rules Apjohn Ventures ...... 16 BY BRENT SNAVELY judge at the commission unless the charges are settled, changes, prompting Thursday’s Arboretum Ventures L.L.C...... 16 CRAIN’S DETROIT BUSINESS the FTC said. charges. Arrow Strategies L.L.C...... 15 The commission also announced consent agree- “The purpose of our MLS is to fa- AST Inc...... 26 Monthly sales at two La Shish fran- Asterand plc ...... 29 ments with five other groups in five other states. The cilitate the sale of properties be- Automation Alley ...... 15 chises plummeted by 40 percent or FTC said the groups including Farmington Hills-based Kage tween listing and selling agents and, Band of Angels ...... 27 more after the company’s owner, Ta- Realcomp had rules that blocked nontraditional, less- in turn, ensure compensation for both parties,” said Berry Moorman P.C...... 28 lal Chahine, was indicted for tax eva- Bretlin Home Mortgage ...... 27 than-full-service home listings from being transmitted Karen Kage, CEO of Realcomp II. Charlie’s La Shish ...... 3 sion in May and the U.S. government from the MLS to popular Web sites. Kage on Thursday reiterated that Realcomp’s board Charter One Bank N.A...... 29 disclosed in court documents that it DaimlerChrysler ...... 14 It also said Troy-based MiRealSource did not accept suspects that Talal Chahine has fund- Daniel Krug & Associates ...... 11 exclusive agency listings, in which a seller hires a bro- See MLS, Page 37 Detroit Regional Chamber . . . . 12, 15 ed Hezbollah, a group classified by Detroit Renaissance Club ...... 27 the U.S. government as a terrorist or- Detroit Tigers ...... 1 ganization. Detroit Water and Sewerage ...... 3 Both franchisees say the La Shish EBI Detroit Inc...... 27 Executive Search Partners L.L.C. . . 14 name was so tarnished by the Hezbol- Fifth Third Bank ...... 12 lah allegations that they needed to Ford Motor Co...... 14 make changes or face going out of General Motors Corp...... 13, 14 George S. Goulson L.L.C...... 35 business. They also have stopped pay- Gohs Inventory Service Inc...... 26 ing franchise fees. Water contract meetings Great Lakes Entre. Quest ...... 18 Samir Saleh opened his La Shish Great Lakes Technologies Group . . 14 restaurant at 4189 Orchard Lake Road Hager Pacific Properties ...... 27 Halo Group L.L.C...... 14 in West Bloomfield Township in May Honigman Miller ...... 1 2004. I*Logic ...... 13 “When I signed the franchise agree- Infor Global Solutions ...... 15 Kelly Services Inc...... 37 ment, it was the best day of my life,” La Casa Inn ...... 33 Saleh said. “Now, when I get out of it set between city, suburbs La Shish ...... 3 — that will be my best day.” LD3 Event Management L.L.C. . . . . 29 Saleh said sales at his restaurant Lighthouse of Oakland County . . . . 27 LogicaCMG plc ...... 14 dropped by 40 percent after the indict- Standardized pact sought; rates still a sticking point Marketing Associates L.L.C...... 15 ments were announced. Menawat & Co...... 13 He plans to rename his restaurant Mezza Mediterranean Grill ...... 3 BY TOM HENDERSON vided at a reasonable rate,” said Mich. Technological University . . . . 27 Mezza Mediterranean Grill and carry a Mich. Venture Capital Assoc...... 16 broader range of cuisine. CRAIN’S DETROIT BUSINESS Faas. “DWSD’s position is they MichBio ...... 29 Charlie Bazzi, 42, owner of the La want as little language on rates as Michigan Nonprofit Association . . 32 The Detroit Water and Sewerage Shish at 2370 Carpenter Road in Ann possible because they want maxi- Michigan Nurses Association . . . . . 27 Department will hold a series of six Midwest Accounting P.C...... 37 Arbor, also said sales have dropped mum flexibility. The suburbs want meetings with suburban water cus- MiRealSource ...... 3 dramatically. as much language on rates in the MOSES ...... 33 tomers from Oct. 24-27 to discuss “We were doing great until the in- model contract as possible. It’s go- Mt. Zion Church ...... 11 updates in a proposed model water National Assoc. of Investors Corp. . 28 dictment came out, and then we lost ing to take a while to get that one contract it hopes to have finished Noble International Ltd...... 4 half of our business overnight,” Bazzi resolved. Rates, as a political and as in the first quarter of 2007. Oakwood Healthcare Inc...... 27 said. “When that happened, (cus- a customer issue, is the most im- PricewaterhouseCoopers ...... 36 It would be the first standard tomers) stopped coming to our loca- portant issue.” Public Policy Associates Inc...... 6 contract in the often-contentious Pullman Industries Inc...... 4 tion. Some of them even knew this Previous meetings were held in relationship between the depart- June to discuss proposed contract Realcomp II ...... 3 was not a company store, but they RGIS Inventory Services Inc...... 26 ment and its 125 suburban cus- were concerned about the franchise language. At the time, officials esti- Sam Hodges & Associates L.L.C. . . 37 tomers. Until now, contract terms SBA ...... 11 fee.” mated the contract was 80 percent have varied, often greatly, from done. Based on input then, language Seger-Elvekrog Inc...... 28 Bazzi opened his 5,500-square-foot, Sensicore Inc...... 16 customer to customer. was added and tweaked, and they 175-seat restaurant on Feb. 6, 2005. He SET Enterprises Inc...... 4 Suburban and water department now say it is 90 percent done. Sunrise Senior Living ...... 26 changed the name of his restaurant to officials who have been part of the “It may have been 80 percent TEC Detroit ...... 14 Charlie’s La Shish in September. negotiations say they represent a WHAT’SONTAP completed, but the last 20 percent Telstar Properties ...... 27 Bazzi’s cousin, Sam Bazzi, was 21 Century 59 L.L.C...... 27 new era in cooperation, and that ■ might take twice as long. Getting overseeing strategic planning at La This would be the first standard University of Detroit Mercy ...... 13 the contract language to be dis- through this will take some time. University of Michigan ...... 29 Shish earlier this year but left the contract in the often-contentious cussed at the meetings later this relationship between the Detroit Originally they set a goal of having Wayne State University ...... 27 company in May. ZenaComp Inc...... 12 month is about 90 percent agreed department and its 125 suburban a contract done by Sept. 1. My opin- Now, Charlie Bazzi said, customers upon. customers. ion is they’ll be lucky to do it by are returning, but he said sales are BANKRUPTCIES ...... 6 One stumbling block is that ■ DWSD does not want to include next September,” said Doug Buch- still down about 25 percent from last BRIEFLY ...... 27 DWSD officials don’t want to in- specific rates; suburban officials holz, manager of operations and year. He declined to discuss annual BUSINESS DIARY ...... 25 clude specific rates in the contract. are adamant that rates be included. maintenance of the Oakland County CALENDAR ...... 18 sales but said he was forced to cut his Suburban officials are adamant Drain Commissioner’s Office. CAPITOL BRIEFINGS ...... 6 full- and part-time staff of about 100 that rates be included. Until now, chairs of the Tactical Advisory Agreement is close on contract CLASSIFIED ADS...... 30 down to about 60. specific rates have not been part of Committee, a group formed in 2003 length. Until now, contracts were KEITH CRAIN ...... 8 Charlie Bazzi said the restaurant is individual contracts. to help draft proposed contract lan- 30 years with automatic 10-year re- LETTERS ...... 8 MARY KRAMER...... 9 just barely able to pay staff and its “The 800-pound gorilla is rates, guage and address other issues. newals. The suburbs had started bills, and for several months he has OPINION ...... 8 and we haven’t addressed that, Gary Fujita, deputy director of the negotiations asking for five- or 10- PEOPLE ...... 19 foregone a salary. yet,” said Tim Faas, municipal ser- DWSD, is the sixth co-chair. year contracts; the DWSD wanted Charlie Bazzi’s building is owned RUMBLINGS...... 38 vices director for Canton Town- “Until now, the contracts have SMALL BIZ SOLUTIONS . . . 16 See La Shish, Page 35 ship. He is one of five suburban co- said only that water would be pro- See Water, Page 33 WEEK IN REVIEW ...... 38 DETROIT BUSINESS MAIN 10-16-06 A 4 CDB 10/13/2006 5:47 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 16, 2006 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Noble buys Pullman Industries, stock price takes a jump

BY BRENT SNAVELY “People who are following the sales to be between $400 million CRAIN’S DETROIT BUSINESS auto space, they see a story where and $415 million. Noble reduced its this company is going to be grow- earnings outlook for the year from Noble International Ltd. CEO ing faster than the industry,” between $1.11 a share and $1.16 a Thomas Saeli said he began pursu- Johnson said. “There is a great share to between 90 cents a share ing an acquisition of Pullman Indus- stock here, and a great story.” and 95 cents a share. tries Inc. shortly after he took Johnson’s hedge fund holds In order to help finance the Pull- charge of Noble in March. some Noble shares and may raise man acquisition, Noble said it has “After researching various pos- its investment stake at some point. entered into an agreement for a sibilities, we identified Pullman as He sees the acquisition of Pullman five-year credit facility incorporat- the industry leader in technology as a good move for Noble. ing a $70 million term loan and a and innovation and therefore our “The question is, how long does $40 million revolving line of credit. No. 1 candidate,” Saeli said Friday it take to bring them together?” Borrowings under this facility are during a conference call with in- Johnson said. “It could be a while being used to fund a portion of the vestors and analysts about the ac- before some of the synergies come acquisition. quisition announced last week. together.” Noble also said it has purchased “Fortunately for us, Pullman was Saeli said Noble expects Pull- Sumitomo Corp.’s and New York- receptive to our calls.” man will have 2006 annual sales of based Sumitomo Corp. of America’s Saeli, who was vice president of about $200 million. The company investment of preferred stock in mergers and acquisitions at South- operates four plants in the U.S., in- Warren-based SET Enterprises Inc. Ford & Earl Associates designed the WJR Studio in the field-based Lear Corp., became CEO cluding two plants in South for $2 million. GM Wintergarden in cooperation with Hines Interests LP of Noble on March 1 and had been Haven, a plant in Spring Lake, and Noble said its agreement to pur- a member of Warren-based No- a plant in Butler, Ind., as well as chase Sumitomo’s investment fol- ble’s board since 2002. two plants in Mexico. lows a comprehensive financial re- “We take great pride in the design of our new studio. …” Noble (Nasdaq: NOBL) makes With the acquisition of Pullman, structuring of SET that put in Mike Fezzey, WJR President and General Manager laser-welded blanks and tubes for the automotive industry. Its prod- Noble now operates 12 plants with place new bank financing and ucts are used by automakers and 2,050 employees and expects com- strengthened its balance sheet, re- suppliers in automobile body combined annual sales of about $690 sulting in a net worth in excess of ponents, such as doors, fenders, million in 2007. $25 million. body side panels and pillars. “Pullman, combined with No- While Noble continues to own 4 Noble said it paid $120 million to ble, allows us to become an instant percent of SET Enterprises, SET buy Troy-based Pullman, a manu- leader in the development of tubu- founder and CEO Sid Taylor now facturer of tubular steel products lar structural products,” Saeli owns 96 percent of the company. for the automotive industry. The said. Taylor said Comerica Inc. provid- purchase price includes the as- David Fallon, Noble’s CFO, said ed him with a loan that enabled DESIGN sumption of debt and represents a no plant closures and few job cuts him to buy Sumitomo’s 46 percent IN OV TIONS multiple of four times Pullman’s are envisioned. Greg Salchow, No- stake in SET Enterprises. N A projected 2007 earnings before in- ble’s director of investor relations, SET, with about 400 employees terest, taxes, depreciation and said Pullman will be run as a sub- and annual sales of about $200 mil- amortization of $30 million. sidiary of Noble and there are no lion, slits steel rolls into smaller The acquisition, announced af- plans to consolidate the compa- widths and stamps out steel blanks Projecting our clients’ visions nies’ two headquarters. for automotive customers. Architecture-Interiors-Marketing Communications-Signage-Exhibits ter the market closed on Thurs- day, drove up Noble’s stock 11.67 This year, without Pullman, No- Brent Snavely: (313) 446-0405, Contact: [email protected] | [248] 740-1754 percent Friday. Noble’s stock ble said it is expecting annual [email protected]. closed at $16.17 Friday, up $1.67 from its Thursday close of $14.50. Geoffrey Johnson, managing STREET TALK member of Minneapolis-based Catamount Capital Management and THIS WEEK’S STOCK TOTALS: 47 GAINERS, 24 LOSERS, 6 UNCHANGED portfolio manager of its hedge CDB’S TOP PERFORMERS 10/13 10/6 PERCENT GEOTECHNICAL funds, said Noble was poised for CLOSE CLOSE CHANGE growth even before its acquisition 1. Noble International Ltd. $16.17 $13.88 16.50 ENVIRONMENTAL of Pullman. 2. Champion Enterprises Inc. 7.99 7.24 10.36 CONSTRUCTION 3. Johnson Controls Inc. 82.47 75.35 9.45 ENGINEERING 4. Amerigon Inc. 9.23 8.56 7.83 5. United American Healthcare Corp. 8.05 7.48 7.62 Compuware predicts dip 6. Meadowbrook Insurance Group Inc. 11.97 11.17 7.16 PHASE IIS 7. TechTeam Global Inc. 8.62 8.05 7.08 in 3Q revenue, rise in earnings 8. Kelly Services Inc. 29.76 27.80 7.05 9. Detroit-based Compuware Corp. Lear Corp. 24.28 22.78 6.59 (Nasdaq: CPWR) announced pre- 10. General Motors Corp. 32.99 31.05 6.25 PHASCINATE US liminary results Thursday for the 10/13 10/6 PERCENT CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE second quarter of its fiscal year, G2 can’t wait to start digging for solutions to your most challenging which ended Sept. 30. The compa- 1. Compuware Corp. $7.70 $7.98 -3.51 NAIC Growth Fund Inc. 8.05 8.30 -3.01 environmental issues, from phenols to phosphorus. ny said it expects revenue to be 2. about $288 million, down from 3. Borders Group Inc. 19.84 20.44 -2.94 $292.6 million for the same quarter 4. Origen Financial Inc. 5.61 5.75 -2.44 a year ago. 5. Dearborn Bancorp Inc. 23.36 23.90 -2.26 Troy, MI: 248.680.0400 The company said it expected 6. Detrex Corp. 7.70 7.86 -2.04 Brighton, MI: 810.224.4330 earnings per share to be about 7 7. Semco Energy Inc. 5.44 5.54 -1.81 Chicago, IL: 847.353.8740 cents, compared to 6 cents for the 8. ProQuest Co. 13.03 13.26 -1.74 www.g2consultinggroup.com same quarter last year. 9. Oxford Bank Corp. 51.00 51.90 -1.73 The company said mainframe 10. Ford Motor Co. 8.17 8.31 -1.69 and European license sales were Source: Bloomberg News. From a list of publicly owned companies with headquarters lower than expected. Final results in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading UNEARTHING POSSIBILITIES will be announced on Oct. 26. at less than $5 are not included. — Tom Henderson DBpageAD.qxd 9/27/2006 12:41 PM Page 1 DETROIT BUSINESS MAIN 10-16-06 A 6 CDB 10/13/2006 4:38 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS October 16, 2006 Meeting Dec. 1 deadline in doubt for tax panel

LANSING — Last May, replace the SBT, said he not in session, return after the elec- with recommendations as a com- thinks any new tax should be prof- state House and Senate does not think the commit- tion for just a few days before leav- mittee, or individual members it-based, and in replacing the SBT, leaders set a Dec. 1 dead- tee will meet the Dec. 1 ing again for nearly two weeks. might introduce a proposal. the state also needs to look at the line for a new committee date. “And quite frankly … They return after Thanksgiving for Cassis said the committee has personal-property tax, said Sikke- to recommend a plan to re- there was no realistic pos- the rest of the session. had “a great deal of input” from ma press secretary Ari Adler. place Michigan’s single- sibility that that was going Sheen said that in December, chambers of commerce, individu- “Ken has said he would like to business tax. to take place,” he said. “we’ll have some hearings for als, economists and others. “And so see something accomplished this But there’s no unanimi- Sheen, R-Plainwell, said sure. But now, we want everybody with that information, you can be- year. I don’t know that the chance ty on whether the commit- that with attention fo- to look at the plans before we try to gin to … relate the questions of any is very high,” Adler said. “A lot of tee will meet that dead- cused on the election, two decide which plan we have.” proposal” to principles that would that is going to depend on the polit- line. And it appears tax-replacement plans re- But Sheen’s co-chair of the joint result in good tax policy, as pre- ical climate, which we won’t know increasingly likely that CAPITOL BRIEFINGS cently unveiled and others committee said her goal for a rec- sented in July by the state House until Nov. 8.” full business-tax restruc- Amy Lane in development, greater ommendation is still Dec. 1. and Senate Fiscal agencies (See re- turing debate will wait un- time is needed to study “The process by which that oc- lated story, Page 1), Cassis said. til the New Year. proposals and assess their impact. curs, I think, is going to be a major Outgoing Senate Majority State adds knowledge jobs Rep. Fulton Sheen, co-chair of (For summaries of the proposals, go point of discussion in November,” Leader Ken Sikkema, R-Wyoming, A new study finds Michigan has the Joint Committee on Economic to www.crainsdetroit.com.) said Sen. Nancy Cassis, R-Novi. She has ideas that he is working on for made progress toward building Growth that is studying options to Lawmakers, who currently are said it may be possible to come up a business-tax replacement. He high-paying, knowledge-based jobs that can help the state reduce its auto-industry reliance. The study by Lansing-based Pub- lic Policy Associates Inc. shows that Michigan has added 55,100 jobs in the past four years in “new economy” areas such as health care, business-support services and real estate. Gains in the sectors that generally require a two- or four- year college degree or significant technical training, and offer higher pay, represented 45 percent of total job gains during the period. While the increases weren’t enough to offset manufacturing job losses, the report says that Michigan’s economy “is showing positive signs of growth in a number of sectors that many observers would consider to be part of an emerging new economy.” But to nurture growth, Michigan needs to “substantially increase its public and private investment in education and infrastructure — will need to change its collective at- titude, and shift to a culture that values education and entrepreneur- ship much more heavily than we do today,” the report concludes. State government’s IT still No. 1 Michigan has retained a top ranking for the use of information technology to improve government. A national survey conducted by the Folsom, Calif.-based Center for Digital Government, with Government Technology magazine, ranks Michi- gan government No. 1 in the use of technology to serve citizens. Comings & goings Gary Post has been named deputy racing commissioner in the Michi- gan Office of Racing Commissioner. Post, a retired Michigan State Police officer who has been a consultant to the office, replaces James Bowes, who left the office earlier this year. Amy Lane: (517) 371-5355, [email protected]

BANKRUPTCIES

The following businesses filed for Chapter 11 protection in U.S. Bank- ruptcy Court in Detroit Oct. 6-12. Un- der Chapter 11 protection, a company files a reorganization plan that the court must approve. Fit Family Inc., 612 Lodge Drive, De- troit, voluntary Chapter 11. Assets: $89,679.95; liabilities: $363,746.40. Justin’s Music Inc., 14621 Fenkell, De- troit, voluntary Chapter 11. Assets and liabilities not available. — Compiled by Daniel Voros DBpageAD.qxd 10/6/2006 2:51 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS October 16, 2006 OPINION Broaden biz tax base; don’t race to bottom ust how much can a governor affect Michigan’s economy when the basic problem is the manufacturing base isn’t J selling cars like it used to? The governor can’t fix the domestic automotive industry. But the governor — and the Legislature — have a big role in making the state attractive for business investment with a replacement tax for the hated single-business tax. The devil is in the details. Some business groups, lawmakers and gubernatorial candidate Dick DeVos think the state can cut business taxes in the process. In fact, they want personal-property-tax elimination or cuts on the table, too. Others, including Lou Glazer, president of the nonpartisan Michigan Future Inc. in Ann Arbor, argue that low taxes won’t necessarily build a talent base for the state’s future. If Michi- gan suddenly had a $500 million windfall, Glazer asks, would business want it used totally for tax cuts? Or would it invest in some areas? Despite the notoriety of the single-business tax, only about 55 percent of Michigan businesses actually pay it. (See story, LETTERS Page 1.) Accountants, who arguably know the state tax structure better than some of their clients, favor a replacement tax that taxes a greater number of businesses but at a lower rate. Al- Dove season no help to economy most one-third of the CPAs responding to a Crain’s survey (see Editor: mourning doves. The birds are not story, Page 1) favor a tax that collects less revenue, and more Crain’s Detroit Business Your editorial on Proposal 3, the overpopulated. They are shot for than 40 percent favor eliminating the personal-property tax on welcomes letters to the editor. proposal to take away Michigan’s All letters will be considered for target practice, not for food. Doves machinery and equipment. 100-year tradition of protecting publication, provided they are do not damage property or crops. Two proposals — one from the Grand Rapids Area Cham- doves (“Weighing proposals on the signed and do not defame There are 40 game-bird species in ber of Commerce and the other from the Detroit Regional Nov. 7 ballot,” Oct. 9) claims, with- individuals or organizations. Michigan, and there’s no reason to out any evidence, that removing Write: Editor, Crain’s Detroit add doves. It has been Michigan’s Chamber — are intriguingly simple. (See www.crainsdetroit. Business, 1155 Gratiot Ave., the century-long protection for tradition to protect mourning Detroit, MI 48207-2997. com.) mourning doves will somehow doves since 1905, and there’s no E-mail: [email protected] We encourage policymakers to pursue a broader base for help Michigan’s economy. reason to change that now. Message boards: Share your the tax. With more companies paying in, while still protecting But a study I co-authored and re- Michigan citizens should vote views in our online community. No on Proposal 3. smaller enterprises, more money could be collected, even at a leased in June (available online at forums.crainsdetroit.com. www.NoOnProposal3.com) proves Donald Garlit lower tax rate. Canton Township otherwise. small-game licenses and, as Crain’s We caution policymakers not to base policy solely on the That report, based on evidence reported, the required $2 dove Proposal 2 would help desire to be one of the 10 states with the lowest business tax from the Michigan DNR and states stamp will go into trust funds, the burdens. Those states include Alabama, Arkansas, Missouri, with dove shooting seasons, con- cost of running the season would be spur businesses Georgia, Tennessee, Oklahoma and South Dakota. None of cluded that a dove season in Michi- gan will not attract new hunters to paid for with tax dollars from our Editor: those states likely would attract big investments from the likes the sport, that no new jobs will be already tight state budget. In times Why we should all vote Yes for of Google or pharmaceutical giant Pfizer Inc. Nor do they en- created, that the state will not sell like these, wouldn’t our tax dollars Proposal 2, the Michigan Civil joy the per capita income states like Massachusetts and Min- additional small-game hunting li- be better spent on improving edu- Rights Initiative. nesota enjoy as a result of their educated, higher-wage econo- censes, and that nonresidents will cation, health care or job creation, On Nov. 7, Proposal 2 will be on rather than allowing a few people my. not visit Michigan to pursue doves. the ballot, which would end all Moreover, a dove season could to shoot doves for target practice? Let’s figure out what kind of state Michigan wants to be, Michigan (not federal) race and jeopardize Michigan’s bird-watch- The lack of economic impact is gender preferences related to gov- what kind of investments are required to reach that vision and ing industry. And, as the DNR has just one more example of why then craft a tax code to get us there. said they expect to sell no new there’s no good reason to shoot See Letters, Page 9

KEITH CRAIN: Hard truths just aren’t on display

It’s just a few weeks until the to do with the economic governor has, regard- number of employees will be small- around the country, many of these election for Michigan’s governor, recovery of our state, less of who it is, there is er, and so must the government. employees live in Michigan. and the charges and counter- they are equally mis- little or nothing he or Detroit is going through that There is a huge trickle-down ef- charges are flying fast and furious. guided. she can do to change the same painful exercise today, real- fect. Every company touched by Like everyone else in our state, What got our state fortunes of our state. izing that a city of 800,000 can’t af- these two giants must downsize. I’ve been listening to the rhetoric. into trouble are the As our state economy ford the bureaucracy and services The cold, hard world doesn’t I can’t help but think how totally companies headquar- gets smaller due to cor- it had when it was nearly 2 mil- care what’s going on in Michigan, off the mark both candidates are in tered here with manu- porate downsizing, the lion. It’s a very painful realization, and it will take years for us to see terms of running the state. facturing plants in this business of government but a very necessary one. our gross state product rebound. When you’ve got a meltdown in state. What has hap- is going to have to get We are still an automotive econ- The governor isn’t going to make Michigan, it would be nice to think pened to these compa- smaller as well. We will omy, and as the domestic automo- a difference in the fate of the auto- that the governor, any governor, nies has nothing to do need, and more impor- bile industry resizes, the rest of mobile industry. The governor will was responsible. But that’s foolish, with the policies of our tantly will only be able to the community must downsize have to make tough decisions on to say the least. government, including the admin- afford, a smaller state government. along with them. As General Mo- cutting services. Neither candidate And if either candidate thinks istrations of past governors. Even if our gross state product in- tors and Ford retire, lay off and wants to discuss these sad facts of that they will really have anything I don’t care how much power the creases over the next decade, the fire thousands of employees life in Michigan. DETROIT BUSINESS MAIN 10-16-06 A 33 CDB 10/13/2006 6:09 PM Page 1

October 16, 2006 CRAIN’S DETROIT BUSINESS Page 33 Water: Meetings set between city, suburbs ■ From Page 3 50-year contracts. Faas said cur- “It’s a noble goal,” said Giber- rent talks have the length at 25-30 son. “They promise a certain pres- years. sure, and the suburbs promise a There is basic agreement that certain demand. That certainly communities will be required to makes the system work more effi- estimate future water needs so the ciently.” DWSD can plan for capital im- Once the model contract is ap- provements to the system. A com- proved, covering basic issues communities’ rate will depend on how mon to all communities, each com- close it comes to meeting its pro- munity will negotiate other issues jections. For its part, the DWSD will guar- specific to it. Individual negotia- antee pressure rates, of prime im- tions are expected to start in the portance to communities close to first half of 2007. Faas estimated it the city, where high pressure can could take as long as two years to cause pipes to rupture or leak, and get all 125 communities signed. communities farther out, where Tom Henderson: (313) 446-0337, pressure can be insufficient. [email protected]

La Casa to take new identity as Days Hotel The former La Casa Inn in Hazel haul of the first of nine floors in the Park, long known as a local eye- 100,000-square-foot hotel, he said. sore, was expected to make its de- Improvements still in the works but Saturday as what will soon be include renovations to the hotel known as Days Hotel-The Park. rooms, the building exterior and Owner Joe Keyes of Chicago, its 3-story parking garage, as well principal of Greenstone Enterprises as converting the top two floors of L.L.C., said the brand is part of the the building into 33 condomini- Days Inn hotel chain, but includes ums, pending approval, Keyes additional in-house amenities — said. The project should take at including a restaurant, conference least two years and cost about $1 rooms and meeting space. million by completion, he said. First-floor renovations have Keyes bought the hotel for an been completed and an Asian/Ital- undisclosed price earlier this year ian restaurant run by 30-year from Jerry Watha, president of De- restaurateur Ernesto Malazo is troit-based One Management Inc., now open for business. Pub 442 who acquired the property out of opened earlier this year, he said. A foreclosure, as previously report- public open house was scheduled ed by Crain’s. for Saturday, to display the over- — Anjali Fluker

Group to study improving state health care

An Oct. 20 event organized by system’s involvement in the na- Metropolitan Organizing Strategy En- tional “100,000 Lives Campaign,” abling Strength, or MOSES, aims to which Henry Ford said allowed it pinpoint first steps to improving to save more than 200 lives and $2.5 health care in the state. million annually by reducing MOSES, an organization of treatment-related infections Southeast Michigan churches, through the effort. synagogues and mosques, is host- Sahney, who also co-authored ing Vinod Sahney for the first of the book Reengineering Health two planned events this Friday at Care, was appointed senior vice Barth Hall in the Cathedral of the president and chief strategy officer Episcopal Church Center at 4800 for corporate strategy, planning Woodward Ave., Detroit. and business development for Blue Sahney, former senior vice pres- Cross Blue Shield of Massachusetts ident and chief project officer at in May. the Henry Ford Health System, led the — Michelle Martinez

Lotus Bancorp picks HQ site Lotus Bancorp Inc., now raising plans to open a temporary branch money through an initial public of- later this year at 45650 Grand Riv- fering to start a new Novi-based er Ave., just west of Taft Road. community bank, Lotus Bank, has The bank, which will target Novi- chosen a site for its headquarters area residents, and Indian and on the northeast corner of 12 Mile Asian business owners in South- Road and Dixon. east Michigan, has raised about 70 Pending completion of its IPO, percent of its minimum IPO target which began on Sept. 28, and site- of $11 million, said Rich Gurne, the plan approval, the bank hopes to bank’s executive vice president and start construction of the 4,500- chief loan officer. “It’s hard to square-foot building soon. It ex- gauge, but we hope to end up at $14 pects construction to take about million or $15 million.” nine months. Meanwhile, the bank — Tom Henderson DETROIT BUSINESS MAIN 10-16-06 A 34 CDB 10/13/2006 4:36 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 16, 2006 Big deals on deck for Tigers? Team on the cusp of endorsement bonanza, but not there yet

BY BILL SHEA they have to become familiar to of Dietz Trott Sports & Entertainment nior vice president of Palace Sports CRAIN’S DETROIT BUSINESS corporate America.” in Bingham Farms, who worked and Entertainment. The Tigers’ winning ways also seven years as an executive in the “I wouldn’t say it’s great com- Success as a team and success mean potential opportunities for Tigers’ front office. pared to New York, Los Angeles, individually is expected to trans- non-players like manager Jim Ley- Zumaya has a blazing fastball Chicago or Boston,” he said. “It relate into endorsement dividends land and general manager Dave that’s become the talk of baseball, flects where it sits. Clearly, people for the Detroit Tigers. Dombrowski. and he’s on a team that’s broken like Ben Wallace, Barry Sanders But not just yet. If the team wins the World Se- from the doldrums to capture na- and Steve Yzerman have done Players such as pitcher Joel Zu- ries, Leyland will especially be in tional attention. He’s parlayed that well.” maya — the rookie reliever with demand in a town like Detroit, into television commercials with In this area, a player can expect the 103 mph fastball — are capital- Caponigro said, because a city that Comcast Corp., making a connec- to earn between $500 to $5,000 for a izing now on the team ending its relies on the ailing auto industry tion between his fastball and the personal appearance, Dietz said. 19-year playoff drought by lending will be looking to hear from the cable giant’s high-speed Internet The price is driven by who the their names and likenesses to com- man who helped turn around a service. player is and what they’re asked to panies eager to have Tigers pitch perennial loser. There’s also a line of “Zumaya do. An Ivan Rodriguez commands their products. But overall, the “Guys like that, who have deliv- Zone” T-shirts sold by Fanatic U in more than a Vance Wilson. players don’t have widely recog- ered with the focus of the entire Garden City, a Detroit sports-ap- A regional advertising deal that nized deals. country on them, and so dramati- parel company that signed Zu- involves commercials and appear- Until the team — which by today cally in such a short period of maya to do appearances. The com- ances can expect to net a player may have earned a World Series NEWSCOM time, there’s definite worth there,” pany also has T-shirt deals with $10,000 to $75,000, he said, and na- Rookie reliever Joel Zumaya’s abilities pitchers Nate Robertson and Jason tional deals generally start at $1 berth — shows it’s a consistent as a fireballer could translate into Caponigro said. He estimated Ley- winner, and players gain expo- popularity as an endorser. land could earn between $20,000 Grilli and outfielders Magglio Or- million. sure, national endorsement deals and $50,000 for an hour speech — if doñez and Craig Monroe. “How (players) can turn that won’t rain down. ly, but they’ve taken a big step,” the team wins the title. Zumaya’s agent, Jim Kuzmich into top dollars, it’s all going to de- “If they can prove they’re not said John Caponigro, president of The players, however, stand to of Scottsdale, Ariz.-based Gaames, pend what a company wants them just one-time guys, that’s going to Bloomfield Hills-based Sports Man- benefit the most, and 21-year-old declined to reveal how much his to do,” Dietz said. “If these guys bode well for their endorsement agement Network Inc. “Before they Zumaya is doubly blessed, said client earns from endorsements. can win (the World Series), they’ll potentially. Maybe not immediate- can be a marketable personality, Mike Dietz, president and director He’s the agency’s lone Tiger, and be adding zeros to those deals.” Kuzmich said interest in his client Winning the World Series is a is on the rise. cash cow, and these Tigers can “I’ve seen an increased amount look to how members of the 1968 (of endorsement inquiries) now and 1984 championship teams are versus, say, a month into the sea- idolized as evidence: “Detroit em- son. He has more opportunities in braces their World Series champi- the Detroit area. Nationally, the ons for life, really,” Dietz said. jury’s still out on that,” he said. Appleby echoed those senti- Detroit is considered in the mid- ments: “Detroit companies love a dle of the pack as far as endorse- winner. That’s the essence of it. ment opportunities go, said Andy Companies want people to associ- Appleby, chairman and CEO of ate their product with a winner.” General Sports and Entertainment Bill Shea: (313) 446-1626, L.L.C. in Rochester and former se- [email protected]

Tigers: Big challenge is building on success Bastian Novi ■ From Page 1 TURNKEY 40000 Grand River Ave. having a fiscally responsible oper- to the playoffs was in 1987. ation and trying to win a World Se- “Getting into the playoffs raises Suite 300 ries.” the awareness of a sports proper- First priority for the Tigers: In- ty,” added Mark Wiche, an analyst Novi, MI 48375 crease the number of season ticket at Denver-based Bortz Media & (248)473-1500 holders from 10,000 to 20,000, Sports Group Inc. “And winning SOLUTIONS Quinn said, by marketing to fans drives sales.” during the off-season. Season tick- This season, the Tigers had an ets are all-important, he added, be- average game attendance of 32,049 cause the organization makes — a dramatic increase from just Bastian Grand Rapids money even if the stadium is half- 16,892 in 2003. The organization FOR empty in April and May. A larger had sales of $146 million in 2005, 751 D Kenmoor Ave. SE season-ticket base also drives de- and was valued at $292 million — mand for regular tickets. 22nd of 30 major-league teams in Grand Rapids, MI 49546 And unlike, say, professional 2005 — according to Forbes. football — which makes a lot of But there’s still plenty of room (616) 235-3775 money on national television for growth: The Tigers ranked broadcasts — most baseball teams only fifth in attendance for the MATERIAL derive the bulk of their profits from American League. Comerica Park, ticket sales, as well as parking and which opened in 2000, seats about the sale of food, beverages and mer- 40,000. (800)837-3760 chandise inside the ballpark. Quinn said the company wants It’s a doable goal, experts to follow the example of the Chica- www.bastiansolutions.com agreed. go White Sox. Attendance spiked to HANDLING “Winning is a big deal for a team 3 million this year from 2.3 million like Detroit that hasn’t won in a in 2005, the year after they won the long time,” said Marc Ganis, CEO World Series. of Sports Corp., a Chicago-based To do so, Quinn said the Tigers consulting firm. “They have a lot plan to continue to invest in the of unsold and undervalued inven- stadium. This year, the company SYSTEMS tory that they can market off this converted many of its luxury winning team.” suites that were up for renewal The Tigers last won the World into the Champions Club, a cli- Series in 1984. The team’s last trip See Tigers, Page 35 DETROIT BUSINESS MAIN 10-16-06 A 35 CDB 10/13/2006 5:35 PM Page 1

October 16, 2006 CRAIN’S DETROIT BUSINESS Page 35 La Shish: Franchisees sever ties ■ From Page 3 Comerica Securities announces the appointment of by Restaurant Properties-Pittsfield L.L.C., a company with the same mailing address as La Shish Restaurants CREDITOR SUES TALAL CHAHINE, FEDS Raymond A. Basile Inc., according to information from real estate data service CoStar Group Inc. Talal Chahine’s legal troubles became even more Vice President and Regional Sales Manager, Charlie Bazzi said he decided against completely complex Sept. 21 when Boca Raton, Fla.-based National Financial Corp. filed a lawsuit in U.S. District Comerica Securities Inc. removing the La Shish name from his restaurant be- Court in Detroit against Chahine, Aya Realty L.L.C. and cause he didn’t want to raise the risk of being sued by the U.S. government. La Shish Restaurants. Saleh said he leases his restau- In its complaint, National Financial says Talal Chahine Through Comerica Bank's full-service brokerage subsidiary, Comerica rant from a company that has no ties to La Shish. has defaulted on a $1 million loan for a mortgage Securities, Ray manages a team of professionals who provide George Goulson, a franchising consultant with signed Feb. 6, 2004, for a building at 13500 Rotunda personalized investment solutions to help you meet your financial Bloomfield Hills-based George S. Goulson L.L.C., said Drive in Dearborn near the headquarters of La Shish Bazzi probably has a better chance of regaining its Restaurants Inc. needs. From college funding and retirement savings to financial customer base because of its Ann Arbor location. Talal Chahine bought the 30,300-square-foot building for planning, the professionals at Comerica Securities can work with you But in heavily Jewish West Bloomfield Township, $1.5 million in 2004 with a $500,000 down payment, to answer your questions and explore your options. Our financial according to real estate data service . Saleh may face a longer road, even with a name Co-Star Group professionals have strong credentials and serve in the role of change, and may need to conduct a local mailing cam- According to National Financial, Talal Chahine and Aya paign to re-introduce the restaurant to its customers. Realty still owe $678,372 and have not paid the facilitator, advocate and direct link to the entire spectrum of financial “(Saleh) almost has to proclaim that he is on the minimum monthly payment of $18,871 since May. services offered at Comerica. They work with a team of specialists to side of the West so that the marketplace there feels National Financial said in its complaint that it wants to deliver the essential components to help you meet your goals. comfortable with him,” Goulson said. foreclose on the property but is being blocked by the La Shish Restaurants owns 12 restaurants, but no in- U.S. government, which has filed an affidavit of interest 36440 Woodward Ave., Bloomfield Hills formation was available on how business has been af- on the property. fected. Assistant U.S. Attorney Kenneth Chadwell said the 248-647-7906 or 800-370-1203 Acting CEO Ali Chahine, Talal Chahine’s brother, government is not attempting to get in the way of lenders who have a legitimate priority and interest in did not return more than a half-dozen messages and Talal Chahine’s property. was not at the company’s headquarters when a Crain’s “If they had a mortgage that preceded our interest, reporter stopped by last Monday. Talal Chahine also then yeah, they could have priority, but I am not familiar did not return two messages left on a mobile phone of a with the specifics of that property,” Chadwell said. Chahine family member who was in Lebanon in July. National Financial argues that its mortgage predates It does appear the company has 150 fewer employees the U.S. government’s filing of its affidavit of interest than it did in the spring. In an interview with Crain’s in by 17 months. May, Talal Chahine said La Shish employed 700. In a — Brent Snavely statement issued Sept. 9, purportedly from Talal Chahine and e-mailed to Crain’s last week from La Shish is scheduled for Nov. 21. Restaurants, he said there were 550 employees. The The allegations of Talal Chahine’s ties to Hezbollah www.comerica.com statement dealt solely with the Hezbollah allegations. appear in a court filing related to El Aouar’s deten- “Neither I, as owner of La Shish, nor its 550 employ- tion hearing in May. Securities offered by Comerica Securities are NOT FDIC insured; are ees support, condone or promote terrorism of any kind In that document, the U.S. Attorney’s office alleged not deposits or obligations of, or guaranteed by Comerica Bank or any of its by any person, religious organization or political party, affiliates; and involve risk including the possible loss of principal. Comerica El Aouar was a flight risk because Talal Chahine was including Hezbollah,” it said. “I unconditionally dis- Securities is a broker/dealer, member NASD/SIPC, and a subsidiary of a keynote speaker at a fundraising event in Lebanon, avow, condemn and despise acts of terrorism.” Comerica Bank. along with Muhammed Hussein Fadlallah, the spiritu- Talal Chahine was indicted in May in U.S. District Court in Detroit on four counts of tax evasion for failing al leader of Hezbollah; had sponsored 40 Lebanese or- to pay taxes on $20 million of restaurant sales over a phans of “martyrs;” and because he and El Aouar had five-year period and now, with interest and penalties, posed for pictures at a Hezbollah outpost in Lebanon. owes more than $20 million. Talal Chahine left the U.S. Last spring, Saleh and a partner tried to purchase La in September 2005 for Lebanon, according to a motion Shish’s restaurants, but Saleh said he has not spoken filed by the U.S. government in August, and hasn’t re- with Talal Chahine since May. “The government will not allow the sale to be trans- 2007 turned. A Lebanese community organizer told Crain’s that ferred until he comes to the country and does what he is Talal Chahine does not plan to return as long as his al- supposed to do,” Saleh said. Do you think your business inate a sm leged connection to Hezbollah is an issue. While it is difficult to know how La Shish will fare om all in the future, Kenneth Chadwell, an assistant U.S. At- or another business might N bu Elfat El Aouar, a former vice president of finance s in for La Shish who married Talal Chahine in 2000, was torney for the Eastern District of Michigan, said the qualify for a Michigan e s also indicted on four counts of tax evasion. El Aouar best way for Talal Chahine to preserve the value of s Celebrates Small Business a was released in May, is currently under house arrest the company and its employees’ jobs would be to re- n Award? d and is no longer married to Talal Chahine, according turn to the U.S., face the charges and pay his taxes. i t to a motion filed by her attorney in August. Her trial Brent Snavely: (313) 446-0405, [email protected] c o

General nominations are b

e c

due by November 15, 2006. o m

Nominations for Michigan e

Tigers: t

Winning can breed challenges h

50 Companies to Watch are e

■ From Page 34 n

due November 3 with e

mate-controlled area that includes parking, drinks the first year,” said Jamil Satchu, a sports consultant t

applications due November b

and food. Other seating concepts are in the works, at management consulting firm A.T. Kearney. “If they g

15, 2006. h i Quinn said, and the company is looking at installing don’t increase their payroll, it will be a quick blip.” t

“ribbon” boards, expensive digital signs that carry ads. Quinn said the Tigers don’t plan on repeating Flori- . The second, and many say more challenging, prob- da’s mistake. “Our goal is to drive that local revenue lem that comes with success, is keeping a winning and keep that on-field product as strong as we can For nomination criteria visit michigancelebrates.biz or visit team together. make it,” he said. any National City branch in Michigan for more information. “As our players continue to gain seniority in the Andrew Zimbalist, an economics professor at Smith College Major League Baseball league, and are eligible for arbitration, we certainly and consultant, said the U.S. Small Business Administration – Michigan want to retain them,” Quinn said. “We want to sign average ballclub spends 54 percent of sales on salaries. Small Business Association of Michigan those players. We also want to compete in the free- If sales increase $50 million next year for the Tigers, Michigan Economic Development Corporation agent market.” Zimbalist said, payroll should go up about $25 million. Michigan Small Business & Technology Development Center Free agents often don’t come cheap. Last year, the Luckily, much of the current Tiger lineup is too Edward Lowe Foundation (Michigan 50 Companies to Watch) Texas Rangers signed pitcher Kevin Millwood to a five- young for salary arbitration or is locked into multi- The above organizations wish to thank: year, $60 million deal, and the New York Yankees signed year contracts. For example, Magglio Ordoñez is Johnny Damon to a four-year $52 million contract. signed through 2009 and Ivan Rodriguez through 2007. And keeping key players is easier said than done. Newcomers Justin Verlander, Marcus Thames and Remember the Florida Marlins: After winning the Joel Zumaya are still within their first two years of World Series in 1997 under current Tigers manager playing in the majors. Players must play three years Jim Leyland, then-owner Wayne Huizenga sold off before they are eligible for salary arbitration. most of the players to cut costs. The following year, “Management is not going to have to fork out a lot the team lost 108 games, the worst record in the Na- next year to keep this team intact,” said Zimbalist. Join us April 12, 2007 tional League in almost three decades. Attendance “But within a couple of years, they’ll have to pay out michigancelebrates.biz dropped to 21,363 per game from 29,190. much larger bucks for this winning team, and at that “What we’ve found is that teams that don’t have a point this whole bubble can burst or it can continue.” Compliments of: high payroll and win, they will get a jump in sales for From Financial Week DETROIT BUSINESS MAIN 10-16-06 A 36,37 CDB 10/13/2006 4:42 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS October 16, 2006 Personal-property tax in the crosshairs

BY AMY LANE largely at helping Michigan manufacturers. nent of cost that is important, and to stay CAPITOL CORRESPONDENT TAXING ISSUE The legislation, which will cut taxes by abreast with others states,” Epolito said. about $600 million over the next four years, The Michigan Manufacturers Association has LANSING — When Ohio Lt. Gov. Bruce How surrounding states have dealt with personal-property taxes: included: pushed for personal-property-tax reform, Johnson sells his state to companies in ■ A single-business-tax credit for 100 per- and wants any replacement tax for that and ■ Ohio has eliminated the tax for new Michigan and elsewhere, he makes sure cent of personal-property taxes paid on the $1.9 billion SBT to occur in an orderly they know that if they bring in a new manu- machinery and equipment and is phasing out all personal-property tax by 2009, as property directly related to technology or transition and be broad-based, low-rate, and facturing plant, they won’t pay tax on ma- part of a 2005 tax reform that eliminates manufacturing jobs transferred to Michigan simple to understand, pay and administer. chinery and equipment they place into ser- Ohio’s “franchise” tax on corporate net in 2007 and 2008. Chuck Hadden, the association’s vice vice. income and replaces it with a “commercial ■ A 15 percent SBT credit for the person- president of government affairs, said “it’s The absence of personal-property tax is activities tax” on gross receipts. That tax is al-property taxes paid on industrial proper- very important to look regionally, first.” phasing in over five years. “the biggest seller,” said Johnson, also the ty. The tax credit is refundable, meaning He said that what surrounding states do ■ director of the Ohio Department of Develop- Indiana this spring capped its personal- that a business could receive the full credit matters because companies such as automo- property taxes at 2 percent of the assessed ment. “It’s a relatively large advantage.” even if it exceeds the SBT owed. tive suppliers, warehouse and distribution It’s also a factor for Michigan’s next gov- value, beginning with taxes assessed in 2009 that are payable in 2010. In 2002, The package also weights a company’s tax centers can locate just across Michigan’s ernor and lawmakers to heed, in crafting a Indiana did a larger tax restructuring that liability more heavily on where its sales are, borders yet still efficiently serve Michigan business-tax structure that will boost Michi- phased out its business-inventory tax and and less on property and payroll, and auto customers. gan’s competitiveness with its neighbors, eliminated a gross-receipts tax, leaving it suppliers Delphi Corp. and Visteon Corp. won And it’s not just what Michigan does the nation and the world. with a tax based on business income. continuation of a multimillion-dollar tax that’s important, but when. Regardless of what tax Michigan enacts to ■ Wisconsin exempts big-ticket items such break on sales to their former parent compa- Consultant Foster said businesses that replace the single-business tax, set to expire as machinery, equipment and computers nies. are evaluating and selecting sites want to from its personal-property tax. This year, it’s at the end of 2007, one key disparity between Granholm said at the time that the bills eliminate uncertainties, and Michigan’s tax Michigan and its neighbors is the $1.8 bil- changing its corporate income tax to weight a multistate company’s tax liability more send “a signal that manufacturing has a situation poses a problem. Gregory Burkart, lion tax on personal property. heavily, and eventually solely, on where its place in Michigan’s future.” State Treasurer a Southfield attorney who helps corporate To be sure, the personal-property tax, and sales are in comparison with property and Robert Kleine has floated the idea of a $600 clients select sites and obtain economic de- taxes overall, aren’t the only factors in busi- payroll factors. million to $700 million personal-property- velopment incentives and state aid, said ness decisions for locations and new invest- ■ Illinois eliminated its business personal- tax cut, applying to commercial and indus- Michigan needs to move promptly in the ment. Labor and energy costs, skilled work- property tax in 1979 but added a surcharge trial personal property. wake of lawmakers’ August repeal of the force, logistics and regulatory burden are onto its corporate income tax to make up Under the idea, the rate of any new over- SBT. central issues that influence the site-selec- the revenue, at the same time instituting all business tax that Michigan institutes “I think the longer it hangs in limbo … the smaller taxes on public utilities, small tion process. would need to be high enough to pay for the worse the perception for Michigan,” businesses and partnerships. But the personal-property tax is a tax tax cut, to avoid any overall reduction in Burkart said. He is of counsel to Cleveland- purely on the type of in-state activity that state revenue. based Squire, Sanders & Dempsey L.L.P. and although differing studies rank the state as states try to foster, said Greg Nowak, part- In last Tuesday’s gubernatorial debate, former vice president of global business de- below average, above average or roughly in ner in charge of state and local tax services Republican challenger Dick DeVos called velopment at the MEDC. the middle in terms of business taxes. for accounting firm PricewaterhouseCoopers for eliminating the personal-property tax The competition is watching. Ohio’s John- Executives who help businesses analyze L.L.P. in Detroit. “and the problem it causes for manufactur- son, who gets weekly reports on Michigan’s and select sites for locations and expansions “We shouldn’t tax what we want to en- ers in our state.” DeVos said that “half-mea- business-tax restructuring progress, said the say Michigan has a chance to enact bold courage,” Nowak said. “I do believe that sures” aren’t enough and that Michigan Buckeye State’s new tax structure and per- elimination of the personal-property tax is changes that send a significant tax-reform needs to deal with what is a key disparity be- sonal-property tax elimination isn’t what the most important factor in assessing a message and improve perception of its busi- tween it and neighboring states. gives Ohio its biggest leg up on Michigan. business climate because it’s only paid by ness climate. Jim Epolito, president and CEO of Michi- “Probably the most significant competi- companies that invest in the state.” “You can market things … but I think you gan Economic Development Corp., said he has tive advantage is that Michigan doesn’t Personal property taxed in Michigan in- have to demonstrate that you are making not had executives cite high taxes as a rea- know what it’s going to do,” Johnson said. cludes most business equipment, machin- significant improvements,” said Dan Foster, son for locating in a neighboring state and “Most businesses will reduce the tax issue to ery, furniture and fixtures, as well as elec- principal in the Ann Arbor office of Cleve- not in Michigan. But he said personal-prop- a relatively minor issue, as long as they get tric and gas transmission and distribution land-based Silverlode Consulting Corp. “I think erty-tax reform “has to be part of the equa- a sense of stability out of it. The biggest ad- equipment. Personal-property taxes are you have an opportunity here to really get tion” in creating Michigan’s next business- vantage that Ohio has on Michigan right based on the acquisition cost, adjusted by some attention.” tax structure. now … is instability.” depreciation. In December, Gov. Jennifer Granholm “The key is to stay competitive, and be- Amy Lane: (517) 371-5355, Michigan is perceived as a high-tax state, and lawmakers approved tax cuts aimed come more competitive. That is one compo- [email protected]

Tax: Small number of firms carry much of the SBT load ■ From Page 1

hard,” said Jay Wortey, senior economist at which is studying business-tax replacement a fairly stable revenue source. In fiscal 2006, the Senate Fiscal Agency. MANUFACTURERS PAY THE MOST plans, Wortley and Bean said the “best” tax the tax provided nearly 21 percent of Michi- Ironically, a broad base and low rate — would: gan’s $9.06 billion general fund. Certain industries pay more in SBT taxes characteristics currently being discussed ■ than others: Have a broad base and low rate. Gov. Jennifer Granholm wants a replace- for a replacement tax — were an idea behind ■ Be simple to administer, and equitable. ment tax to have a lower rate, broader base Percent Percent ■ the SBT. Enacted in 1975, the SBT replaced of filers of tax Have low compliance costs for business and be profit-sensitive. She does not want it seven other taxes, including a corporate in- and government. to reduce state revenue. Manufacturers 10.0% 30.1% ■ come tax, franchise fee and a local property Be a stable revenue source. Republican gubernatorial challenger ■ tax on inventories. Service 29.9% 24.3% Promote economic growth. Dick DeVos says the tax should have a broad But the tax has been criticized for its com- Retailers 23.4% 14.6% Michigan’s unique SBT is a “value-added” base and be centered on business profits and plexity, for coming due even in years when a levy designed to reflect a company’s total Finance, real gross receipts. In last Tuesday’s televised business might lose money, and for falling business activity. The SBT uses a compa- estate, insurance 11.1% 6.9% debate, DeVos said he would replace at least disproportionately on manufacturers. ny’s federal taxable income as a starting half the revenue the SBT generates. He has A joint July presentation by Wortley and Construction 10.5% 6.1% point, then adds in various costs, including said he would pay for a tax cut in part out of House Fiscal Agency Director Mitchell Bean Source: House and Senate Fiscal agencies; Michigan compensation paid to employees, interest $800 million in government savings and pro- shows 461 businesses, just 0.2 percent of all Dept. of Treasury and royalties, and depreciation. Michigan businesses, paying 34.6 percent of But the tax also contains myriad added gram reductions, without cutting essential SBT, the largest single share. tax, 30.1 percent. Service businesses, repre- credits and exemptions, many tied to eco- services. The 2000-2001 data, the most recent avail- senting 29.9 percent of SBT filers, paid the nomic development or aiding specific busi- But Granholm said in the debate that the able, show that 23.3 percent of Michigan second-highest share of the tax, 24.3 percent. ness sectors, such as a $350,000 gross-re- state will face problems in providing needed businesses did not file an SBT return, and Retailers paid 14.6 percent of the tax, while ceipts threshold below which a small services if the revenue is not replaced. “I’d an additional 21.3 percent filed but owed no finance, insurance and real estate firms business doesn’t have to file or pay the SBT. like to know how you’re going to fill that bil- tax. Some 55.5 percent of Michigan’s 193,861 paid 6.9 percent and construction business- Unlike the potential swings of a corporate lion-dollar hole, without hurting individu- businesses had a tax liability. es paid 6.1 percent. income tax levied on Michigan’s cyclical als,” she said. Manufacturers represented just 10 per- In their presentation to the Legislature’s auto industry and other elements of the Amy Lane: (517) 371-5355, cent of filers but paid the largest amount of Joint Committee on Economic Growth, manufacturing-rooted economy, the SBT is [email protected] DETROIT BUSINESS MAIN 10-16-06 A 36,37 CDB 10/13/2006 4:42 PM Page 2

October 16, 2006 CRAIN’S DETROIT BUSINESS Page 37

Survey: Replacing SBT far from a simple debate www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] try ing for the state, and business- dividuals, through the income tax ASSOCIATE PUBLISHER Christopher Crain, es in general, to replace $1.9 bil- or sales tax. (313) 446-1645 or [email protected] SBT REPLACEMENT MEETING SURVEY SAYS … EXECUTIVE EDITOR Cindy Goodaker, (313) 446- lion,” said Sam Hodges, owner of “You seem to see some unanimi- 0460 or [email protected] Troy tax-consulting firm Sam EC IN OVI Crain’s Detroit Business, in MANAGING EDITOR Jeff Karoub, (313) 446- D . 7 N ty of position on this issue. In tax- 0402 or [email protected] Hodges & Associates L.L.C. “It’s so conjunction with Honigman Miller Want to know more about possible Schwartz and Cohn L.L.P., surveyed es, that’s rare,” Haas said. “You ASSISTANT MANAGING EDITOR Michael Lee, important not to make a misstep (313) 446-0416 or [email protected] replacements for the single- members of the tax section of the have the tax professionals, as well on the tax, because that has to do business tax? SPECIAL SECTIONS EDITOR Shawn Selby, (313) Michigan Association of Certified as the politicians, agreeing that we 446-1654 or [email protected] with Michigan’s business land- Honigman Miller Schwartz and Public Accountants about what GRAPHICS EDITOR Nancy Clark, (313) 446- scape.” shouldn’t shift the tax burden to 1608 or [email protected] Cohn L.L.P. is sponsoring “The SBT type of business tax structure COPY EDITOR Vic Doucette, (313) 446-0410 Hodges is chairman of the busi- Replacement Tax: How Will It Affect should replace Michigan’s single- the individuals.” or [email protected] ness-tax restructuring subcommit- Your Business?” on Dec. 7 at the business tax, expiring at the end of In other survey results: DATA EDITOR Anne Marks, (313) 446-0418 or Hotel Baronette in Novi. 2007. ■ [email protected] tee of the Michigan Association of 97 percent of respondents said WEB EDITOR Dan Eizans, (313) 446-0473 or Certified Public Accountants, which Presenters will be Mark Hilpert, There were 728 respondents to it’s important to create a business- [email protected] June Summers Haas, Fred Frank the statewide online survey, WEB DESIGNER/PRODUCER Ai-Ting Huang, is not taking a position on specific tax structure that promotes invest- (313) 446-0403, [email protected] and Richard Barr, all of Honigman; conducted in September. restructuring proposals. ment and expansion in Michigan. EDITORIAL SUPPORT Anita Duncan, (313) Amy Lane, Capitol correspondent, 446-0329; Joanne Scharich, (313) 446-0419 Business-tax issues represented ■ But a statewide survey of the as- Crain’s Detroit Business; and Pat 71 percent said Michigan NEWSROOM (313) 446-0329, FAX (313) 446- more than half the practice of 29 1687 TIP LINE (313) 446-6766 sociation’s tax section, conducted Anderson, principal, Anderson percent of respondents, between a should broaden the base of compa- by Crain’s Detroit Business with Economic Group, East Lansing. quarter and half the practice of 28 nies paying business taxes. REPORTERS law firm Honigman Miller Schwartz Registration and a continental percent of respondents, and less ■ Robert Ankeny: Covers the city of Detroit, Wayne 70 percent said tax incentives County government, and law. (313) 446-0404 or and Cohn L.L.P., finds 55.5 percent of breakfast are at 7:30; than a quarter of the practice of 43 are important, and 71 percent said [email protected]. the tax professionals favoring a re- presentations are from 7:55 a.m. percent of respondents. Sherri Begin: Covers nonprofits and education. businesses that have received the (313) 446-1694 or [email protected] placement-tax structure that nei- to 9:30 a.m. The cost is $50; For questions or to RSVP contact incentives under the SBT should Andrew Dietderich: Covers biotechnology, ther increases nor decreases over- should reflect a tax burden com- innovation and workforce. (313) 446-0315 or Kathy Golba at (313) 465-7238 or be able to use those credits against [email protected]. all state revenue — a position petitive with neighboring Great Anjali Fluker: Covers Macomb and Oakland at [email protected]. any new tax. counties, services and environment. (313) 446- advocated by Gov. Jennifer Lakes states. Many tax advisers 6796 or [email protected]. also said Michigan doesn’t have to In terms of who should receive Sheena Harrison: Covers small business, retail Granholm. Tax professionals may view rev- be the lowest-tax state: Just 16.4 incentives, the largest number of and nonautomotive manufacturing. (313) 446- That’s a different sentiment enue neutrality as important, even 0325 or [email protected]. percent said Michigan should respondents, 39 percent, said the Tom Henderson: Covers banking, finance and than expressed in the general busi- necessary, if Michigan concur- technology. (313) 446-0337 or have the lowest tax burden of its tax breaks should go to companies ness community, where the Michi- rently tackles another nettlesome [email protected]. neighbors, while one-third said that add new jobs to Michigan lo- Michelle Martinez: Covers health care, gan Chamber of Commerce, Detroit tax on business: the $1.8 billion transportation and international business. (313) Regional Chamber and Grand Rapids Michigan should be among the 10 cations. Nearly 32 percent said in- 446-1622 or [email protected]. personal-property tax. Bill Shea: Covers media, advertising and Area Chamber of lowest states in the country. centives should go to companies marketing, and Livingston and Washtenaw The survey found considerable counties. (313) 446-1626 or [email protected] Commerce all ad- That latter group includes ac- making new investments. support, 42.4 percent, for eliminat- Jennette Smith: Covers real estate and vocate a tax cut, countant Gregory Randazzo, presi- Mike Orsini, vice president, tax, hospitality. (313) 446-0414 or ing the levy on machinery and [email protected]. as does Republi- dent of Midwest Accounting P.C. in at Kelly Services Inc. in Troy, said equipment. About 20 percent said Brent Snavely: Covers auto suppliers, steel and can gubernator- Clinton Township. that one thing “critical to develop- restaurants and entertainment. (313) 446-0405 the tax should be left as is, and an or [email protected]. ial contender “Why not be the lowest?” he ing the economy in Michigan is to equal number said the personal- LANSING BUREAU Dick DeVos. said. “Why wouldn’t you design have a tax structure that encour- Amy Lane: Covers business issues at the property tax should be revised. something that is better than Capitol, telecommunications and utilities. (517) June Sum- ages employment.” 371-5355, FAX (517) 371-2492, Some 16.8 percent said personal- everyone else?” [email protected]. or 115 W. Allegan, Suite 220, mers Haas, a He said that while a replace- Lansing 48933. property taxes should be cut. Randazzo said the SBT is a “hor- former Michi- ment tax should be broad-based ADVERTISING Haas “It’s a trade-off,” Haas said. “If rible tax” that has “no relationship gan revenue and low-rate, it’s also important ADVERTISING DIRECTOR Marla Downs, (313) commissioner and partner in you eliminate the property tax, it to how the company is doing. It’s a 446-6032 or [email protected] for incentives to be offered broadly Honigman Miller’s Lansing office, makes it much harder to cut the re- disincentive to invest, to grow.” He SALES INQUIRIES: (313) 446-6052; FAX (313) instead of selectively. 393-0997 said tax advisers are likely view- placement tax.” said a tax based on business in- In fact, the survey found little NEW BUSINESS DEVELOPMENT MANAGER ing the revenue issue “from a tax- Ohio recently eliminated its per- come might make a sense, and oth- Cathy Ross, (313) 446-0307, [email protected] support for giving incentives to ADVERTISING SALES Jeff Anderson, Terri policy viewpoint, what is good for sonal-property tax for new ma- er CPAs surveyed seem to agree. Engstrom, Matthew J. Langan, Shawn the state.” She said they may feel chinery and equipment and is Among characteristics in a new out-of-state companies coming to McCracken, Tamara Rokowski, Dale Smolinski Michigan for the first time, and WESTERN ACCOUNTS Ellen Mazen (Los that the best policy is to stay the phasing out all personal-property business-tax policy, the concept of Angeles) (323) 370-2477 course in terms of revenue. tax by 2009, as part of 2005 tax re- an adjusted business-income tax even less favor for giving tax CLASSIFIED MANAGER Melissa McKay, (313) breaks to companies that preserve 446-1692 The survey found 29.3 percent of form (See related story, Page 36). won significant favor over options CLASSIFIED ACCOUNT EXECUTIVE Christina respondents favor a replacement And survey respondents said that like a gross-receipts tax, net-worth Michigan jobs or are in targeted Jaranowski, (313) 446-1655 tax that generates less revenue overall, how Michigan stacks up tax or a sales tax on services. The industries such as technology or MARKETING ASSISTANT Jennifer Dunn MARKETING ARTIST Sylvia Kolaski than the SBT, while 15.2 percent against its neighbors is important. characteristic backed by the great- manufacturing. SALES SUPPORT Suzanne Janik, Andrea said the new tax should generate Nearly 47 percent said new est number of respondents: no Amy Lane: (517) 371-5355, Beckham, YahNica Crawford CIRCULATION Candice Yopp, Manager. more revenue. Michigan business-tax policy shift in business-tax burden to in- [email protected] PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information MLS: Center at [email protected]. FTC charges groups with restraint of trade CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. ■ From Page 3 CHAIRMAN Keith E. Crain PRESIDENT Rance Crain of governors and broker members oppose the “Brokers and their clients ought to be able to SECRETARY Merrilee Crain TREASURER Mary Kay Crain FTC changes. reach whatever sensible contracts they want,” Executive Vice President/Operations “Our view is we don’t agree with their posi- Our view is we don’t agree he said. William A. Morrow tion,” she said. “We’re not a utility.” “ Group Vice President/Technology, Virginia Bratt, MiRealSource CEO, said her Manufacturing, Circulation Robert C. Adams Kage said FTC’s changes would “entirely com- with their position. board has not had a chance to discuss possible promise the purpose of the MLS and the core ser- Vice President/Production & Manufacturing changes to its rules, but said it has excluded ex- Dave Kamis vice we provide to our Realtor participants who We’re not a utility. Corporate Director/Circulation clusive agency listings because these listing de- Patrick Sheposh pay us to represent their best interests.” Real- ” Karen Kage, CEO, value the role of brokers. Discount commis- G.D. Crain Jr. Founder (1885-1973) comp and MiRealSource have 20 days to respond Mrs. G.D. Crain Jr. Chairman (1911-1996) Realcomp II sion-structure brokers, however, can join the to the FTC’s charges and will be gathering infor- EDITORIAL & BUSINESS OFFICES: mation and evidence, Kage said. MLS, she said. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Kage said the rule changes demanded by the sent agreement with an organization in Austin, “Consumers are better served by hiring bro- Cable address: TWX 248-221-5122 AUTNEW DET FTC could “result in the sale of properties be- Texas, over the issue of discriminatory listing kers,” she said. “We are not harming the pub- Subscriptions $59 one year, $98 two years. Out feeds to popular Web sites. Sites such as of state, $79 one year, $138 for two years. tween buyers and sellers with no obligation to lic.” Outside U.S.A., add $48 per year to out-of-state Realtor.com have become a major tool for con- rate for surface mail. utilize or compensate broker members. … The Roach said even the National Association of Reprints: For inquiries call the reprints FTC complaint makes absolutely no sense, and sumers searching for home-listing data. department at: (800) 494-9051, Ext. 144 , or at Realtors has recommended that MLS services [email protected] we reject any proposal that would result in Besides the Michigan organizations, the lat- not prohibit exclusive agency listings, follow- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 such a scenario.” est group of investigated groups are in Col- is published weekly by Crain Communications Inc. ing a number of FTC cases from 1985 to 1995. Patrick Roach, deputy assistant director in orado, New Hampshire, New Jersey, Virginia at 1155 Gratiot Ave., Detroit MI 48207-2732. Administrative law judges are required to de- Periodicals postage paid at Detroit, MI and the FTC’s bureau of competition, said these and Wisconsin. These groups all agreed to additional mailing offices. POSTMASTER: Send cide cases like these within a year of the com- address changes to CRAIN’S DETROIT BUSINESS, complaints are not in any way about for-sale- change rules. Circulation Department, P.O. Box 07925, Detroit, plaint, although there are provisions for exten- MI 48207-9732. GST # 136760444. Printed in by-owner listings. Roach said that by not accepting exclusive U.S.A. Roach said the FTC has been looking at MLS agency listings or not passing all listings to sions, Roach said. Entire contents copyright 2006 by Crain Communications Inc. All rights reserved. organizations across the country in recent popular Web sites, MLS organizations create Jennette Smith: (313) 446-0414, Reproduction or use of editorial content in any months and during the summer reached a con- an unfair environment for consumers. [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 10-16-06 A 38 CDB 10/13/2006 6:23 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS October 16, 2006 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 7 - 13

ing The Classic golf course. ploring the possible sale of Inc., from board member. In 2001, the club added an- Detroit the Detroit Water and Sewer- He replaces John Albertine, First peek at other course, which Keith age Department, the Detroit who left to pursue other Gornick named The Trib- Free Press reported. business and public-policy ute in honor of his father; a schools to Lewand has submitted responsibilities. conference center; and the more than $155,000 in legal ■ Steve Schram to direc- Pontresina Restaurant. bills to U.S. District Judge tor, Michigan Public Media, Asian Village The three opened the rebid telecom John Feikens, the court over- Ann Arbor, from interim same week as the terrorist seer of the department. He director. attacks of Sept. 11. The re- also has met with many po- sort fell on hard times and contract litical and business leaders BRIEFLY restaurants was put on the market in to try and find a solution to 2002. An auction was held, etroit Public Schools the long-running battle be- ■ The Detroit Medical Cen- but none of the offers met isitors to the North lunch boxes. Superintendent tween Detroit, which owns ter said in a message to em- Gornick’s requirements. American International “We’ll serve Asian and D William Coleman the system and sets its ployees that its board had This auction has seven V Auto Show in Janu- French pastries and be said the school board would rates, and many suburban about two months ago ex- parcels with minimum ary may be among the first open for breakfast starting rebid the telecommunica- communities which feel the tended system President bids. The ski runs, the Clas- to get preview looks at Asian at 6 a.m.,” Snider said. tions portion of the dis- rates are excessive. and CEO Mike Duggan’s con- sic, the hotel and restau- Village of Detroit, but Crain’s Overall, most of the Village trict’s information-technol- Suburban communities tract through 2009. rants will have a minimum readers are among the first will be open from 11 a.m. to ogy contract. are represented on the De- ■ Greektown Casino L.L.C. bid of $1.9 million. to hear the name of its high- 11 p.m., he said. The district had awarded troit Board of Water Commis- reported nearly $29.3 mil- The Tribute has a mini- end restaurant: Fusia. Roseville-based GVC/Infor- sioners by Detroit mayoral lion revenue for September, mum bid of $1.5 Village CEO mation Solutions Group the appointees. up from its September 2005 million. Four James Snider told work as part of its overall The city has said it would total of $25.3 million, while parcels of lands are Crain’s Friday that $58 million IT contract. not sell the system, but MotorCity Casino L.L.C. had offered at mini- work is progress- Coleman said in an e- agrees there may be a need nearly $38.9 million rev- mum bids of either ing toward a De- mailed statement issued for regional cooperation in enue for September, com- $3,500 or $6,500 an cember comple- Tuesday that he recom- its operation. Feikens has pared with September acre. Finally, the tion of the food mended a new RFP for the said that he doesn’t want to 2005’s revenue of $33.9 mil- entire complex will multiplex, leaving telecommunications con- impose a solution, but theo- lion. MGM Grand Detroit Casi- be offered at a min- time to get city oc- tract because of allegations retically could order a sale. no L.L.C. had $41.6 million imum bid totaling cupancy certifi- of unfairness and influence revenue for the month, the high bid for the cates by Jan. 12. peddling. compared with $35.4 mil- previous six Dura bond payments due; Fusia is to be a In late July, incumbent lion for September 2005. parcels. 160-seat fine-din- IT provider Compuware Chapter 11 speculation ■ CMS Enterprises, a sub- ing Asian fusion Corp. (NYSE: CPWR) had Already the focus of sidiary of CMS Energy Corp., restaurant that BITS & PIECES appealed the Board of Edu- bankruptcy speculation, said it and St. Louis-based cation’s decision, citing ex- also will feature ■ Crime Stoppers troubled Rochester Hills- Peabody Energy Corp. would perience and pro bono ser- French cuisine. It Otsego Club will be auctioned Oct. 25. of Michigan at a based supplier Dura Automo- co-develop a new coal-fired also will include a vices it provided in tive Systems Inc. is on the Southern Illinois power Nov. 15 dinner will addition to the contract. sushi bar with tra- honor Roger Penske, chair- hook for $41 million in bond plant. CMS will invest $200 Otsego Club in Gaylord The Detroit Free Press re- debt payments by Nov. 1. million in the project. ditional offerings plus man and CEO, Penske Corp.; “some hybrids never before goes on auction block ported that Coleman recom- Of that, $17.25 million ■ The state Local Emer- David Egner, president and mended GVC seek consult- seen,” Snider said, as well was due Sunday. It was not gency Financial Assistance CEO, Hudson-Webber Founda- ing from a friend under as a bar and lounge. The 1,100-acre Otsego Club clear Friday whether Dura Loan Board has recommend- Hotel and Resort, a private tion; and Detroit Police investigation for allegedly The Village also will in- would make the payment. ed lifting the declaration of ski club and public golf re- Chief Ella Bully-Cummings for accepting illegal favors as a clude a quick-serve casual The company, which a financial emergency in sort in Gaylord — with two making metro Detroit a bet- school official in Dallas. makes driver and seating and carryout restaurant Hamtramck, in the wake of 18-hole courses, 27 ski runs ter place to live and work. controls, had negative cash that will seat 150 and be improved city finances and and five chairlifts, a 117- For more information, call flow in the second quarter. financial management. called the Asian Marketplace, Northwest, mechanics room hotel and two restau- (313) 922-5000. It also faces a round of ■ AlixPartners L.L.C., a which also will include ■ rants — goes up for auction Detroit Lion Eddie Drum- reach tentative settlement fourth-quarter production turnaround management shopping. on Oct. 25 at the Westin Hotel mond has agreed to serve as Northwest Airlines Corp. cuts at Ford Motor Co., its company with more than “When patrons walk in, at Metro Airport. Owner a spokesman for the Ameri- and its mechanics union largest customer, and at 500 employees in six U.S. of- they’ll get a card to swipe at Keith Gornick, 53, said he can Red Cross-Southeastern reached a tentative agree- General Motors Corp. fices and offices in Italy, the various food stations or wants to devote more time Michigan Chapter’s “Home ment to provide severance Standard & Poor’s analyst France, Japan, Germany to shop in the market gro- to his oil and gas explo- Team” campaign. pay to about 4,300 striking Martin King said Dura and the United Kingdom, cery store, or the dim sum ration business, Gaylord- ■ The Detroit Zoo’s Ford workers. might have enough cash announced Thursday that cart,” he said. When fin- based North Hawk Energy Education Center is ex- The Aircraft Mechanics Fra- available to make the pay- it has completed a deal sell- L.L.C. ished, the customer pre- , and to his family. hibiting through Nov. 30 ternal Association went on ments due to the recent sale ing a majority stake to its sents the card in order to The club was founded in of a plant in Germany. the wildlife and nature pho- strike Aug. 14, 2005, over more than 500 employees check out. The Marketplace 1939 and bought in 1955 by Dura also has a letter of tography of real estate de- $203 million in wage and and the San Francisco- Gornick’s father, Alan, the also will feature a 220-ca- benefit cuts. Northwest re- intent from a buyer inter- based private-equity firm of veloper Burton Farbman. Dura Automotive Sys- pacity area for banquets former general counsel at placed the workers with ested in Hellman & Friedman L.L.C. Ford Motor Co. and one of the Farbman is donating tems Rotenburg GmbH in and special evening events. outside vendors. ■ Metrobank will be re- Whiz Kids who are credited framed and unframed du- Rotenburg, Germany, and Also planned is the Kawai- Under the agreement, named Citizens First after a with rescuing the company plicate prints of the works has been talking to interest- ian Café, an Indonesian/ striking workers can accept transition period when it after World War II. on exhibit to the zoo for sale ed buyers for its plant in Polynesia coffee/teahouse layoff status — and be will be called Citizens First featuring house brands , Gornick turned what was to the public to benefit the Lage, Germany, said Cliff available for callback for up Your New Metrobank. Metro plus retail gift sets and tra- then just a ski club into a zoo. Order forms will be at Roesler, managing director to two years — and receive Bank was acquired by Citi- ditional Japanese bento or year-round resort by build- the exhibit. for W.Y. Campbell & Co., up to five weeks of layoff zens First Bankcorp Inc. in pay for every year of ser- Dura’s financial adviser for the sale of the German 2004. vice. Or they can leave and ■ ITC Holdings Corp. said it collect one week of sever- plants. Also on Friday, Dura’s had completed its $865 mil- ance pay for every year of lion acquisition of Michi- SBT, columns and more election audio service up to 10 years. The third-largest shareholder, Societe Generale of Paris, gan’s other major electrici- agreement is still subject to ty-transmission company, We added a few new features to candidates. Hear Gov. Jennifer member ratification. sold its 1.19 million shares crainsdetroit.com this week. Now you Granholm and challenger Dick DeVos Michigan Electric Transmis- Also, Northwest said it in the company, Bloomberg can read any of our columnists’ most talk about the importance of a sion Co. L.L.C. will add flights from De- News reported. recent 14 columns (Mary Kramer, revitalized Detroit. Visit ■ John Ferchill, the Cleve- troit to Dusseldorf and Keith Crain, Christopher Crain, crainsdetroit.com/election06 and land developer who is reno- Brussels next year, as well Sheena Harrison or Bob Allen) free of click on “audio” to listen in. ON THE MOVE vating the Book-Cadillac Ho- charge. We’ll be adding more as a flight to Amsterdam. And if the election doesn’t rev your ■ WXYZ-TV Ch. 7 news an- tel in Detroit, said his (including Tim Pulice’s “The Web engine, I know an expanded single- chor Frank Turner left the company has sold three Pulice” and Brent Snavely’s “Table business-tax roundtable will. See the condominiums there for Talk”) later this week. All of the writers transcripts from the Crain’s Detroit Sale of Detroit Water station to become a full- are featured on the left-hand Business and Honigman Miller Dept. being studied time pastor at God’s Amazing more than $1 million each, navigation bar under “Columns.” Schwartz and Cohn roundtable Grace Ministries. the Detroit Free Press re- We’ve also got more audio for you WEB WORLD discussion by clicking on “This F. Thomas Lewand, a court- ■ Donald Thomason to ported. The building is from this year’s gubernatorial Daniel Eizans Week’s Issue” on the home page. appointed attorney, is ex- chairman of Semco Energy scheduled to open in 2008. DBpageAD 2.qxd 10/9/2006 1:04 PM Page 1

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I’m all about Free Package Pickup. Running my shop is a lot easier when I’m actually in my shop.

You know those little signs that say “back in 15 minutes”? Not an option. I have my mail guy, Mr. Morris instead. On his daily stop, he picks up my packages, gets ’em out of my store, and gets ’em in the mail. Check it out. Go to usps.com/smallbiz