Zug Island: More Than Next Wind Power Mayor at Stake Mecca? Donors Move from Filling $56M Backs Bid for Gaps to Guiding Development

20091026-NEWS--0001-NAT-CCI-CD_-- 10/23/2009 6:55 PM Page 1

www.crainsdetroit.com Vol. 25, No. 42 OCTOBER 26 – NOVEMBER 1, 2009 $2 a copy; $59 a year

©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Philanthropy Detroit Election Zug Island: More than next Wind power mayor at stake mecca? Donors move from filling $56M backs bid for gaps to guiding development. Focus, Pages 13-20 Vote seen as referendum on city’s future drivetrain facility BY NANCY KAFFER drop of a rapidly approaching Nov. 3 elec- Y OM ENDERSON CRAIN’S DETROIT BUSINESS tion that will seat a four-year, full-term may- B T H Foundation portfolio values or. AND RYAN BEENE back on the rise, Page 3 etroit Mayor Dave Bing took office in Challenger Tom Barrow, who took about CRAIN’S DETROIT BUSINESS May, campaigning on his acumen as a 10,000 ballots in the August primary to D political outsider and business leader, Keith Cooley, the CEO of NextEnergy, has put Bing’s roughly 68,000, has opposed the may- together a consortium of industry heavy- Inside a guy who could make the tough choices or on almost every point: criticizing Bing’s needed to right the listing ship of Detroit fi- weights and lined up about $56 million in cuts, his treatment of the unions and his matching-fund commitments Dan Gilbert spends $15.4M nances. interactions with regional Five months later, Bing has as it awaits word on a $45 mil- on chance at Ohio casino, leaders. lion U.S. Department of Energy laid off about 500 city work- Barrow’s campaign ers, presided over the grant to build an engineering Page 3 has worked to paint facility on Zug Island that creation of a regional Bing as an outsider, authority to manage would develop and test drive- a disinterested trains for what could easily Real estate firms defend Detroit’s Cobo Center, suburbanite who cut bus service, ter- be the world’s largest wind won’t protect De- turbine. profits in DPS deals, Page 3 minated union con- troit’s best inter- tracts, instituted a The facility would be ests. Barrow, in called NextWind and test pow- 10 percent wage contrast, has Cooley This Just In and benefit cut for ertrains that can generate 15- made much of 20 megawatts of energy. The nonunion work- his status as a Legislators approve more ers and is pushing world’s current most power- INSIDE lifelong Detroi- ful wind turbine, which is in MEGA program tax credits for the city’s ter, whose family L3C advice: Alt- largest labor Germany, generates seven energy business tree includes leg- megawatts, enough to power Legislation giving state of- unions to sign off on endary boxer Joe right for Detroit, ficials more Michigan Econom- similar reductions — about 1,800 U.S. households Page 6 ic Growth Authority tax credits all against the back- See Mayor, Page 32 for a year. The diameter of its that they can offer compa- rotors is 413 feet. Most commercial wind tur- nies this year is on its way to bines generate one to 2.5 megawatts. Gov. Jennifer Granholm for her “Clearly, we’ll have a chance to share knowl- signature, after getting final edge, share information, share expertise and approval last week. share history,” said Cooley of the consortium House Bill 4922, sponsored partners. by Rep. Ed Clemente, D-Lin- NATHAN SKID/CRAIN’S DETROIT BUSINESS Cooley said industry partners already on coln Park, provides an addi- board with $35 million in commitments include tional 85 yearly credits in MORE ELECTION COVERAGE WEB EXTRAS such major turbine manufacturers as Atlanta- 2009 that the MEGA board Where they stand: Bing Business perspective: Council and charter commission: Meet based GE Energy, Clipper Windpower Inc. of Califor- and Barrow tell Crain’s Business owners talk the candidates, www.crainsdetroit.com can award to general busi- See Wind, Page 32 nesses and to those solely re- about the issues, about what they need from Video: Bing, Barrow outline administrations, taining jobs. That’s on top of Pages 22-23 the city, Pages 24-26 www.crainsdetroit.com/multimedia the 400-credit cap that the state has reached. Most of the 85 credits would need to come from DAC, Forest Lake Country Club to vote on merger those previously approved by the board over the course The downtown athletic club and the subur- of the MEGA program but BY BILL SHEA CRAIN’S DETROIT BUSINESS ban country club on Oct. 21 signed a nonbind- never used by companies. ing letter of intent that would have the DAC In 2010 and beyond, the Members of the Detroit Athletic Club and Forest buy out the equity memberships of Forest MEGA program would have Lake County Club in Bloomfield Hills will vote Lake’s golf members. a 300 yearly credit cap, plus a later this year on what’s being billed as a pro- The deal — its legal mechanics are still being posed merger that would make the golf course a See This Just In, Page 2 worked out along with due diligence — would club-within-a-club for the DAC. give the DAC’s 2,410 resident members access to the country club’s dining and social options, but there would be premiums, still to be determined, for pool and tennis access and for golf. Forest Lake members would get access to the DAC, ranked within the industry as one of the elite private social and business clubs in the nation. COURTESY OF FOREST LAKE COUNTRY CLUB The deal’s organizers didn’t say how much Forest Lake Country Club, which opened in 1926 in Bloomfield Hills, has about 230 equity golf members the equity buy-out might cost. NEWSPAPER and capacity for roughly 100 such memberships for See Country club, Page 30 Detroit Athletic Club members. 20091026-NEWS--0002-NAT-CCI-CD_-- 10/23/2009 6:34 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 26, 2009

bid from the U.S. Army Tacom Life Lochmoor Automotive closes The Kmart portion is now a “Big Newspaper executives told the THIS JUST IN Cycle Management Command in K” store, because it does not have St. Petersburg, Fla.-based Poynter Warren to take over production on August Russo has closed his De- grocery. Institute for Media Studies that they ■ From Page 1 the family of medium tactical ve- troit auto dealership, the Lochmoor Other co-branded stores are in expect the Free Press and News, hicles in 2011, from current con- Automotive Group. Greensboro and Raleigh, N.C. which share business operations, possible 85 additional credits. The tractor BAE Systems. Formerly Lochmoor Chrysler Jeep, The three stores are being used to achieve positive cash flow by yearly credits refer to the total BAE and Warrenville, Ill.-based the company lost its franchise as prototypes. the end of 2010. number of years for which MEGA Navistar International Corp. filed when Chrysler Group L.L.C. emerged — Daniel Duggan — Bill Shea credits are granted. protests against the award to from bankruptcy. The dealership The bill requires the state, in Oshkosh, and BAE filed supple- closed permanently on Oct. 9. Free Press circulation drops Medical waste cost tops $500B determining the length and mental protest documents earlier In June, Russo announced that amount of a credit, to consider the this month. he was to be a local franchise to 7.5% on Sundays The U.S. health care industry BAE Global Tactical Systems sell Mahindra & Mahindra Ltd. wastes each year between $505 bil- project’s effects on other Michigan The Sunday Detroit Free Press President Dennis Morris said last trucks. He also has been selling lion to $850 billion from a combi- businesses in the same industry. lost 7.5 percent of its Sunday cir- week the Army placed too much used cars and Vespa scooters but nation of fraud, administrative in- The legislation also increases the culation over the six months end- weight on pricing versus produc- had to close, said David Lewis the efficiency, unnecessary or number of agreements that can be ing Sept. 30 compared to the same tion capacity and other factors general manager. redundant care, medical errors made for high-tech businesses. period a year ago, according to when it selected Oshkosh, whom The dealership was formed 30 and complications, and lack of HB 4922 is tied to other bills, Audit Bureau of Circulation num- Morris believes underbid BAE by years ago. care coordination, according to a also passed, that alter the MEGA bers to be released today. up to 10 percent on the $3 billion- The dealership was down to 24 new study by Ann Arbor-based program. Those bills, sponsored employees from the 80 it employed Sunday circulation is now plus contract. Thomson Reuters. by Sen. Nancy Cassis, R-Novi, in- before the Chrysler termination, 560,188. A year ago it was 605,369. Ann Stawski, vice president of The study, which is being re- clude measures that require annu- according to Crain’s sister publi- Some combined weekday cir- marketing at Oshkosh, said the leased today, is based on detailed al state reports to list the jobs cre- cation Automotive News. culation is down an average of 8.2 company would not comment on analysis of hospital financials, in- ated or retained in any year that a — Daniel Duggan, Dustin Walsh percent, with the five-day aver- Morris’ remarks or the FMTV bid surance claims and government credit is applied, the value of tax age 437,578 — which accounts for data, and a review existing litera- credits claimed and the total capi- protests while they are pending. the limited home delivery on Oshkosh and the Army are expect- ture, Thomson Reuters said. tal investment. Bloomfield Sears outlet opens some days. ed to respond in filings before the Key findings include: 37 percent — Amy Lane A Sears outlet store opened Oct. The circulation measurements General Accounting Office. is wasted on unnecessary treat- 2 in the Kmart store in Bloomfield are the first since the Free Press ment such as overuse of prescrip- Before the contract was award- Hills, one of three such arrange- and The Detroit News reduced Protests delay Oshkosh hiring ed, Oshkosh Defense President tion antibiotics and use of diagnos- ments in the country. home delivery days on March 30 tic lab tests; 22 percent is from Andy Hove had said winning FMTV Any decisions on Southeast The store, at 2101 S. Telegraph in an effort to staunch financial fraudulent Medicare claims and il- would generate up to 100-200 jobs. Michigan hires or suppliers for Road, was a Super K store until losses. They also don’t reflect a legal referral kickbacks. Stawski said hires are on hold Oshkosh Corp. subsidiary Oshkosh last year, when the grocery section Sunday price increase to $1.50 on —Jay Greene Defense are on hold at least until while the GAO makes its decision. was removed, said Kim Freely, man- Oct. 5. mid-December, one of its vice pres- The company will accept proposals ager for Hoffman Estates-based idents said last week, while the from suppliers wanting to take Sears Holding Corp. The space used CORRECTION part in FMTV but is not likely to government weighs two protests for grocery is now used for the Ⅲ A story on Page 29 of the Oct. 19 issue incorrectly stated the name of make decisions before the GAO’s against its winning bid on a fleet of Sears outlet store, she said, a client of attorney J. Douglas Peters. Peters represents Anthony Paint- decision. military trucks and trailers. though the Sears portion has ing Inc., which claims to be owed $162,000 by ownership of the Alden — Chad Halcom The company in August won the been given a separate entrance. Park Towers.

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October 26, 2009 CRAIN’S DETROIT BUSINESS Page 3 Gilbert spends $15M for casino Focus: Law center, so he should be considered a major part of the Ohio business Horsetracks fight Ohio ballot proposal community, said Jennifer Kulczy- BY DANIEL DUGGAN land, with Penn National owning The group has been running ads cki, senior communications man- CRAIN’S DETROIT BUSINESS casinos in Columbus and Toledo. taking aim at “Ohio money going ager for Livonia-based Rock Ven- Opposing the to Michigan,” as a reference to tures L.L.C. Dan Gilbert has spent $15.4 mil- initiative is a Gilbert’s Michigan residence and She also said it is ironic that two lion in a political shoot-out with a group called the his position as CEO of Livonia- out-of-state companies are accus- coalition of horse-racing venues Truth PAC, made based Quicken Loans Inc. ing him of being out of state. over the Issue 3 vote for casino up of contribu- Similarly, Truth PAC has been “His investments in Ohio are gambling in Ohio on Nov. 3. tions from the referencing former Detroit Mayor among the most visible in the Campaign finance reports filed Mountaineer Casi- Dennis Archer’s role as an adviser state,” she said. “He should be con- Furloughs useful cost-savers last week show half of the $31.7 no Racetrack in to the campaign as that of a “politi- sidered a businessman in both million pro-casino war chest in Chester, W.Va.; cal insider.” states.” – but be careful, Page 10 Ohio came from Gilbert and his af- Northfield Park “They say we should keep Ohio Kulczycki said Archer is an ad- filiated companies. Racetrack in gambling money in Ohio. But viser now but will be offered the Gilbert The balance was contributed by Northfield, who’s really getting the money?” chance to be a casino investor if Wyomissing, Pa.-based Penn Na- Ohio; and Jacobs Entertainment Inc., Truth PAC says in a television ad. the ballot issue succeeds. Company index tional Gaming Inc. owner of Colonial Downs horse Gilbert employs 2,000 people in Also a contributor to the pro- If Issue 3 is approved by Ohio racing track in New Kent, Va. Ohio through his various ven- casino group, Ohio Jobs and Growth These organizations appear in this week’s Crain’s voters, Gilbert will be able to own Truth PAC has raised $6 mil- tures, such as the Cleveland Cava- Detroit Business: casinos in Cincinnati and Cleve- lion. liers and a Quicken investment See Casino, Page 33 Adolph Mongo and Associates ...... 32 American Resource Training Systems ...... 25 Art Van Furniture ...... 18 Barris, Sott, Denn and Driker ...... 13 Bodman ...... 12 Butzel Long ...... 10 Chrysler Group ...... 12 Charter One Bank ...... 19 Real estate firms defend profits in DPS deals Community Foundation for Southeast Michigan . . . 14 Cranbrook Educational Community ...... 16 Detroit Athletic Club ...... 1 BY DANIEL DUGGAN vices. ISI used as a local broker De- Detroit Public Schools ...... 3 CRAIN’S DETROIT BUSINESS troit Property Acquisitions L.L.C., of Detroit Public Television ...... 13 Our six-month investigation shows a lack which the managing member is Diversified Chemical Technologies ...... 26 As Detroit Public Schools officials “ David Farbman, co-president of Farbman Group ...... 3 take on a handful of real estate of due diligence and inexplicable the Southfield-based Farbman Fisher Foundation ...... 3 firms on an accusation of taking Group. Focus:HOPE ...... 11 exorbitant profit, companies in- spending. Here’s how four of the nine De- Ford Motor ...... 12 volved say the deals were on the ” troit Property Acquisition deals Forest Lake Country Club ...... 1 up-and-up and approved by the Dianne Sobczak, Detroit Public Schools happened, according to deed trans- Fox Run Village ...... 4 school district. fers on file at the Wayne County Reg- General Linen and Uniform Service ...... 25 A Crain’s examination of public “We are not accusing anyone of partner with Marx Layne & Co. in ister of Deeds office: General Motors ...... 12 Heidelberg Project ...... 16 records and court files shows the anything right now,” he said. Farmington Hills, who represents Ⅲ Five parcels in the 400 block of paper trail on Henry Ford West Bloomfield Hospital ...... 17 “This is not a witch hunt, but in the company, said on behalf of the Selden Avenue north of Mack Avenue: Hope Medical Clinic ...... 16 three controver- some cases there are just too many company: “While we respect the Originally owned by Total Armored Hudson-Webber Foundation ...... 14 sial deals and missing documents.” job Mr. Bobb is doing, the compa- Car Service, the land was sold to Jewish Federation of Metropolitan Detroit ...... 31 the profit made Bobb and his team have consid- ny does not feel it is fair to be criti- Farbman in March 2002 for $1.1 John K. King Books ...... 26 by companies ered the deals an example of a loss cized over the deals it did with De- million. It was marked up 15 per- Kemp, Klein, Umphrey, Endelman & May ...... 12 involved. of internal control and now ques- troit Public Schools.” cent and sold to ISI for $1.265 mil- Knight Foundation ...... 14 Real estate tion the impact real estate deals lion that same day, then marked Kresge Foundation ...... 31 will continue to have on the district’s bottom line. up 5.2 percent and sold to Detroit Lawrence Technological University ...... 17 McGregor Fund ...... 13 be at the fore- “Our six-month investigation Cass Tech land Public Schools for $1.331 million. front of the in- Michigan Economic Development ...... 6 shows a lack of due diligence and The process for buying land to Ⅲ 9240 Hubbell: The property Miller, Canfield, Paddock and Stone ...... 10 vestigations by inexplicable spending,” said Di- build the Cass Tech High School was originally owned by Heritage Bobb Nemeth Burwell ...... 11 DPS emergency anne Sobczak, chief investigator was outlined during Bobb’s hear- Realvest Corp., of which Grosse New Economy Initiative of Southeastern Michigan . 13 financial manager Robert Bobb as for DPS. ing last week. Pointe Shores resident Tom Mon- NextEnergy ...... 1 his hearings on real estate deal- Three deals involve the South- The land acquisition was han- sour is the managing member. The Oakland University ...... 16 ings continue this week on Tues- field-based Farbman Group and its dled on behalf of DPS by Washing- Ogletree, Deakins, Nash, Smoak & Stewart ...... 10 day and Wednesday. affiliated companies. Mike Layne, ton, D.C.-based ISI Professional Ser- See DPS deals, Page 33 Recycle Here ...... 26 Skillman Foundation ...... 13 SpaceForm Welding Solutions ...... 29 Stonebridge Financial Partners ...... 13 St. Vincent de Paul Detroit ...... 16 Summit Commercial ...... 24 The Detroit Institute of Arts ...... 16 Foundations see portfolio values rebound with markets The Detroit Riverfront Conservancy ...... 16 The Fishman Group ...... 12 BY TOM HENDERSON Dow Jones Industrial Average and related eq- UAW ...... 12 University of Michigan ...... 16 CRAIN’S DETROIT BUSINESS uity markets have buoyed investments at most BACK IN BLACK Visteon ...... 11 endowments and philanthropic organizations. Here’s a look at average performance of Vulcanmasters Welding ...... 24 “It was fear and chaos a year ago,” said “Year to date, most clients are up 20 per- portfolios of reporting endowments and Wayne State University ...... 16 Melissa Cragg, chief investment officer for the cent,” said Paul Kenney, a partner in the De- foundations nationwide: William Beaumont Hospitals ...... 16 Max M. and Marjorie S. Fisher +17.2% troit office of Cambridge, Mass.-based NEPC One-year returns as of: Foundation, referring to the FOCUS SECTION L.L.C., a consulting firm that helps nonprofits, collapse of credit markets charities and endowments manage their invest- June Sept. Dec. March June Philanthropy: 30, 30, 31, 30, 30, and the sharp decline in ments, recommending outside money man- 2008 2008 2008 2009 2009 +3.8% portfolio values that fol- From filling gaps agers and monitoring performance. to guiding Sept. YTD Department index lowed. development, “Everyone is down over the last two years, -3.8% 30, returns Today, she and others Pages 13-20. but a number of our clients — if you look at per- 2009 as of BANKRUPTCIES ...... 4 who help nonprofits and formance through the 12 months ending Sept. Sept. CALENDAR ...... 33 -14.5% -16.6% 30, philanthropic organizations manage their 30 — are up.” 2009 CAPITOL BRIEFINGS...... 29 money are breathing much easier. The average performance of the portfolios of CAREERWORKS ...... 27 Panic over falling portfolios has been re- major endowments and foundations as tracked -25.8% -25.5% CLASSIFIED ADS ...... 28 placed by a sense of relief as a sharp rise in the Source: Independent Consultants Cooperative See Portfolio, Page 31 KEITH CRAIN...... 8 LETTERS...... 8 OPINION ...... 8 Health Care Summit Small Talk OTHER VOICES ...... 9 Miss the big event? Watch Paul Want to know what Tom Barrow or Dave Bing will THIS WEEK @ PEOPLE ...... 27 Keckley’s morning keynote address do for small business? See video responses at WWW.CRAINSDETROIT.COM at www.crainsdetroit.com/summit www.crainsdetroit.com/smalltalk RUMBLINGS ...... 34 WEEK ON THE WEB ...... 34 20091026-NEWS--0004-NAT-CCI-CD_-- 10/23/2009 5:28 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 26, 2009 Developer of Fox Run, Henry Ford Village seeks bankruptcy protection

BY GABE NELSON week in U.S. Bankruptcy Court in nior-living developments. Among affected by the restructuring facility from Novi Campus L.L.C., SPECIAL TO CRAIN’S DETROIT BUSINESS Texas, citing declining revenue them is Novi Campus L.L.C., which process,” he said in a statement fol- which would be sold to Redwood. caused by drops in sales and occu- owns Fox Run. lowing the court’s decision. “The The development was initially Novi retirement community Fox pancy at its 19 senior-living facili- The firm would also assume only thing that residents will notice slated to include 1,500 units in 14 Run Village may soon have a new ties nationwide. about $500 million of Erickson’s is the continuation of suspension of buildings, but some plans were owner with developer Erickson Re- In an effort to offload its construc- debt and commit $50 million for fu- construction of new buildings on sidetracked by the slow economy. tirement Communities L.L.C. in bank- tion business and focus on manag- ture development. their campuses until Erickson gets The company owed the most ruptcy, although Henry Ford Village ing its communities, Erickson has After selling its real estate hold- rid of its construction debt, until it money among unsecured creditors in Dearborn, also developed by Er- asked the bankruptcy court for per- ings, Erickson would continue to obtains a capital infusion from the is Braun Construction Group Inc. of ickson, would not change hands. mission to sell assets that include manage by contract the retirement new owner and until the national Farmington Hills, the general con- With a combined 1,664 units, the Fox Run development. homes it developed, including both economy improves to the point tractor for the Fox Run develop- Henry Ford Village and Fox Run The company has reached an Henry Ford Village and Fox Run. where it can resume construction.” ment. Erickson owes Braun $4.66 are the two largest senior-living fa- agreement with Hanover, Md.- Erickson was pushed into bank- In Erickson’s business model, million, according to a filing. cilities in Southeast Michigan, ac- based Redwood Capital Investments ruptcy last Monday when lenders independent nonprofits operate The first residents moved in af- cording to a 2008 Crain’s list. L.L.C., which would pay $100 mil- sought $16 million and froze bank the facilities by contract until the ter the first phase was completed Baltimore-based Erickson filed lion for seven Erickson subsidiary accounts containing about $20 mil- developments are complete, at in 2005. The second phase, which for Chapter 11 bankruptcy last companies that own unfinished se- lion in cash, according to an affi- which point the developments are started in 2006, was put on hold af- davit filed on Erickson’s behalf. sold to the nonprofits. Erickson re- ter the completion of the seventh The company, which had $2.7 mains the management company building last October, Tansill said. billion in assets and $3 billion in li- throughout the process. Erickson’s bankruptcy seems to abilities as of Sept. 30, had negoti- Tansill said the deposits paid by stem from a downturn in the mar- ated with lenders several times to residents are safe because they are ket for senior-living facilities. reduce the amount of cash it was paid to the nonprofits, which are Despite an increasing older pop- Nationally Recognized Substance Abuse required to keep on hand. not involved in the bankruptcy. At ulation, the economic slowdown With Erickson’s cash flow con- Fox Run, residents pay a $200,000 has resulted in decreased occupan- Residential Treatment Center strained, the company filed a mo- deposit and a monthly fee of $1,968, cy at many retirement homes, said I can help you to save a life today tion Wednesday seeking access to on average. Roger Myers, president and CEO cash collateral so it could pay day- The deposits are returned upon of Southfield-based Presbyterian Vil- to-day operating expenses, such as the death or move of the resident. lages of Michigan, in an interview CHIEF EXECUTIVE OUTREACH salaries and payments to vendors. Henry Ford Village, completed with Crain’s earlier this month. A shortage of cash “would have in 1999, is owned by Baltimore- Many seniors who expected devastating effects on the resi- based nonprofit Henry Ford Village their previous home to continue Just call me on my dents of the communities,” Erick- Inc., and will not be sold. appreciating in value can no personal cell phone (734)476-9931 son argued, “leaving many resi- But the bankruptcy raises ques- longer afford to switch homes. dents without food, medical tions about the future of Fox Run, Others are waiting for the real es- Denise Bertin-Epp supplies, and the health and sup- a three-phase development cur- tate market to rebound to get the President and Chief Nursing Officer, Brighton Hospital port services that they require.” rently in the second phase. best deal, said Myers, whose com- I Highest physician recognition by the American Society of Addiction Medicine (ASAM) The request was temporarily It is operated by Baltimore-based pany manages 23 retirement com- I Masters prepared and experienced therapists granted Thursday over objections nonprofit Fox Run Village Inc., led by munities in Michigan. I Highest percentage of addiction certified nurses in the USA (CARN) I Integrative therapies, including auricular detox acupuncture and yoga by lenders, which include PNC Executive Director Michael Mc- Gabe Nelson: (313) 446-0417, gnel- I First choice for executives, health professionals and attorneys Bank. A hearing revisiting the or- Cormick. The nonprofit leases the [email protected] der is slated for Thursday. www.brightonhospital.org Mel Tansill, an Erickson 800-523-8198 spokesman, said the cash collateral provides capital to manage its Confidential • Patient/family support • Intervention liaison • Evaluation facilities during bankruptcy. Admission • Advocacy/counsel • Referrals • Concierge services “Services to residents will not be SP1563 BANKRUPTCIES The following businesses filed for Dyke Road, Washington, voluntary Chapter 7 or 11 protection in U.S. Chapter 7. Assets: $9,084; liabilities: Bankruptcy Court in Detroit Oct. 16- $106,980. 22. Under Chapter 11, a company files Y & S Inc., 6855 Allen Road, Allen for reorganization. Chapter 7 involves Park, voluntary Chapter 7. Assets: total liquidation. $1,120; liabilities: $32,344. Market Street Holdings L.L.C. and Chateau Group Inc., 30555 Grand River Southfield & I-75 Real Estate L.L.C., Ave., Farmington Hills, voluntary 8700 Brandt St., Dearborn, voluntary Chapter 7. Assets and liabilities not Chapter 7. Assets and liabilities not available. available. TAJ Graphics Enterprises L.L.C., 211 Y.A.S. Group L.L.C., 30555 Grand River Walnut Blvd., Rochester, voluntary Ave., Farmington Hills, voluntary Chapter 11. Assets and liabilities not Chapter 7. Assets and liabilities not available. available. Rocky’s Party Shop Inc., 59380 Van Compiled by Gabe Nelson Commercial • Residential • Retail

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Page 6 CRAIN’S DETROIT BUSINESS October 26, 2009 L3C adviser: Detroit should turn to making alt-energy parts BY SHERRI BEGIN WELCH the second state to legalize such industry. Now it’s left with an im- L3C concepts that could reinforce plants — in Michigan. CRAIN’S DETROIT BUSINESS L3Cs, behind Vermont and the age problem, Lang said. Detroit’s would-be image as the al- Lang and more than 1,000 others Crow American Indian tribe of “If there’s a reason for Detroit to ternative-energy center of the na- are expected to attend the annual A national expert helping to cre- Montana. Seven states in all have continue to be tion: a year-round, urban farm in conference of Washington, D.C.- ate “for-profits with nonprofit legalized the new business enti- and to prosper Detroit that produces energy from based Independent Sector and the souls” across the U.S. is proposing ties, which by definition must again, you have its biowaste — something in which Grand Haven-based Council of several new companies to help have a socially beneficial purpose. to find other in- Southwest Solutions is interested — Michigan Foundations in Detroit, Michigan, including one to shift Just as Paris is the city of ro- dustries for and a “zero-carbon zone” in the Nov. 4-6. the state’s idle automotive suppli- mance and New York is known for which you can city. Independent Sector, a nonprofit, er capacity to parts production for its theater and financial districts, once again be Lang, who’s been to Michigan nonpartisan coalition of corpora- alternative-energy industries. most cities have an image, said the center of the several times, will return to Detroit tions, foundations and nonprofits, The concept is to take advantage Bob Lang, founder of L3C Advisors universe,” he in early November to court founda- collectively represents tens of of new, low-profit, limited liability in Cross River, N.Y., and CEO of said. tion support for the L3C concepts thousands of charitable groups companies — or L3Cs — which cre- the Mary Elizabeth & Gordon B. Man- Lang He believes al- and get input on possible leaders for across the country. It works to ate revenue streams through a nweiler Foundation, which invested ternative-energy parts production, one of them. It’s a new, low-profit strengthen nonprofits and the combination of public and private more than $250,000 to fund the pas- beginning with wind turbine business that would look to match work they do to advance the com- investment to feed a socially bene- sage of L3C legislation in Vermont. parts, could be Detroit’s new demand for wind turbine replace- mon good. ficial purpose. As anyone knows, Detroit was niche. ment parts with idle capacity — Sherri Begin Welch: (313) 446- In January, Michigan became synonymous with the automotive Lang also is proposing two other skilled tradesmen, machinery and 1694, [email protected]

State seeks allies in push for federal aid A SECOND OPINION for manufacturers

BY RYAN BEENE CRAIN’S DETROIT BUSINESS SAVED US Efforts to launch a federal effort to help small manufacturers diversify, modeled after a Michigan program targeted at auto suppliers, have been stalled by politics, says the state’s top economic develop- $10,000 ment official. Michigan Economic Development Corp. CEO Greg Main and Gov. Jennifer Granholm have been pushing since August for the Oba- ma administration to adopt a program modeled after the MEDC’s IS YOUR BUSINESS IN SERIOUS NEED OF A Supplier Diversification Fund, which uses $12 million from the CITIZENS BANK SECOND OPINION? How 21st Century Jobs Fund to leverage private bank loans to fund suppli- would you like to save $10,000* in one year as er diversification projects. Though limited, the Michigan this client did? A Citizens Banker will meet with program is one way for capital- starved auto suppliers to access fi- you for a one-on-one consultation to examine nancing that has been essentially cut off by traditional lenders. every aspect of your business and pinpoint ways “They tend to understand the you could be saving or making more money. You problem and have even found ways that they could be helpful, might be doing everything right, but wouldn’t it but haven’t decided that they should be helpful yet,” Main said. help to get a Second Opinion? “We have decided that this is not any longer a technical or policy issue, it is a political issue.” Main said he suspects the rea- To schedule your Citizens Bank Second Opinion, sons for the administration’s re- CALL 877-CITIZENS (877-248-4936) or visit us luctance are twofold: criticism about the bailouts in general and online at CITIZENSBANKING.COM/OPINION the fact that Michigan has thus far been alone in this effort. Now, Main and Granholm are talking to counterparts in other auto supplier-heavy states like Ohio and Indiana, as well as con- * Results may vary depending on your business situation. gressional delegations, to gain a broader support network that could step up pressure on Wash- ington for a loan program. The new strategy has been under way for about a month, Main said. Granholm and Main began their push for more resources to aid capital-starved suppliers in July meetings with Lawrence Summers, director of Obama’s Na- tional Economic Council, and Ron Bloom, head of Obama’s automotive task force. Main hopes the strategy will be more successful than those to date. Ryan Beene: (313) 446-0315, [email protected] DBpageAD.qxd 8/31/2009 4:04 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS October 26, 2009 OPINION LETTERS Bing is best choice Ready for Penske to take lead Editor: already, this state requires busi- Crain’s Detroit Business Having just finished reading the ness and labor to have to rally to welcomes letters to the editor. get action on building needed pow- Oct. 12 issue, I wholeheartedly All letters will be considered for support Keith Crain’s recommen- publication, provided they are er plants? What the heck is wrong for Detroit’s future dation (“OK, now he can run for signed and do not defame with these people in Lansing who the governor’s office”) that Roger individuals or organizations. are charged with these decisions? Penske consider becoming a can- Is the governor so naive that she ov. 3 is Detroit’s day of reckoning. Letters may be edited for length didate for Michigan’s next gover- and clarity. doesn’t understand what is going Voters will either endorse the politics of the past or on here? nor. Write: Editor, Crain’s Detroit entrust incumbent Dave Bing with steering Detroit Will it take thousands more peo- N Where do I send my donation? Business, 1155 Gratiot Ave., through historic and challenging times. Edsel Ford Detroit, MI 48207-2997. ple out of work and businesses to Grosse Pointe Farms shut down because they lose more The choice for business is clear: We support Dave Bing. E-mail: [email protected] contracts since they can’t perform His hard-headed realism is what Detroit automakers and deliver to customers because should have embraced 30 years ago — and are now paying the Penske has right stuff Coal good for state of power shortages that lead to price for not doing so. Editor: rolling outages? Bing pledges to pursue the recommendations of his turn- Regarding Keith Crain’s Oct. 12 Editor: The ridiculous idiocy known as The story “Biz, labor rally for around team of seasoned business volunteers. The city he in- column on Roger Penske (“OK, “global warming” has been discred- coal plants” in the Oct. 5 issue is ited by thousands of scientists who herits has a workforce of more than 13,000 — far more per capi- now he can run for governor’s office”): Great idea! I can think of heartening because business and at one time bought into the lunacy, ta than peer cities. It has 50 union bargaining units — a no one better; just the right brand labor have found something they so why are we still making deci- can agree on, and troubling because staggering number. Its budget deficit may be approaching $300 of character and competence. sions based on a discredited climate it takes this type of pressure to get million. With a footprint of 138 square miles, the city may have Joe Richert models? This continual bowing at our legislative leaders and bureau- three times the acreage land experts believe it needs to support President and CEO the altar of environmentalism by Special Tree Rehabilitation System crats to do what is needed and right. a population of 800,000. And spread across that massive land- Romulus As if things are not bad enough See Letters, Page 9 scape are 70,000 vacant structures and parcels. Bing’s opponent, Tom Barrow, casts Bing as a carpetbagger who is intent on selling Detroit’s “jewels.” Barrow opposes the recently created regional authority to run Cobo Center. That is the politics of the past. TALK ON THE WEB Barrow is angry. For the past decade he has battled to clear his name after a conviction for tax fraud and evasion he calls From www.crainsdetroit.com politically motivated. The fight, partially successful and still ers on both sides of the aisle actual- Re: Is DRIC support collapsing? Reader responses to stories and in litigation, has clearly left its scars. ly did something to fix the problem, as Maybe Gov. Granholm finally blogs that appeared on Crain’s Barrow has some good ideas, including one-man police pa- opposed to using federal funds as a realized that the more than $30 trols and tapping community groups and neighborhood lead- Web site. Comments may be Band-Aid? million dollars spent already on edited for length and clarity. Rob Roux ers to write their own blight tickets. the DRIC study was a complete But in order to build a future, Detroit must first recognize waste of tax dollars. reality. Barrow doesn’t. TheTruth Re: State law limits how much Re: Senate sends six budget bills Business owners (See Pages 24-26) ask for basics: Prompt governor can shift funds: to governor: The state should save its $2.5 mil- police response and visibility. Less bureaucracy and more ac- If she wants money to fund a pet Cutting even more funding to K- lion allocated to DRIC in its budget. 12 and higher education will rele- countability from city workers instead of what one owner de- cause, she could start by eliminating Joe Blog gate us to becoming the Mississippi the office of the first gentleman. scribe as ‘the Twilight Zone.’ A list of city inspection sched- of the Midwest. Motown Expat ules, fees and fines. A comprehensive list of requests for Re: Committee looks at taxing doctors: Cary Gersh proposals for products and services so companies can bid on I am a radiology resident in a Re: Stimulus saves or creates jobs: city work. program in Ohio, although I am a Re: Detroit Shock will move to Tulsa: We’re on track to lose more than But high on the list is ethical leadership. legal resident of Michigan and pay 230,000 jobs in the state of Michi- I wonder if the new owner will have The pay-to-play Kilpatrick era, name-calling and other Michigan state taxes. If this tax the team play 30 miles from Tulsa, as gan for 2009 and they have the au- passes the Senate, I will not work Bill Davidson did in “Detroit.” shameful public conduct of some City Council members and dacity to put out that the income back home. I will not live and work in Karen rooting out corruption in the Detroit Public Schools have cre- a state that taxes unfairly. redistribution plan from Washing- ated a vivid and lasting impression inside — and outside — of Youngmd ton will save maybe 19,500 jobs? our city. BNK12 Re: Women execs few in Michigan: This is a referendum on the city’s future. If Bing loses, we Perhaps attorneys should give back Women have been proven to be predict business investment will drop and businesses that are some of their profits to the people. I $3.7 billion divided by 19,500 jobs important contributors to busi- would not doubt that a 3 percent means we have only had to pay ness, and they have been held back here will vote with their feet. tax on gross revenue for attorneys $190,000 per job. in many places. But this article is a For some, this election will decide whether the city can be would substantially reduce the W.Dave great example for the support of to- saved. For others, it’s a decision on whether it’s worth sav- budget deficit. kenism in the workplace. ing. Adrian Sheremeta How about if our fearless lead- Auto Engineer KEITH CRAIN: Whatever happened to ethical behavior? Last week, Fortune magazine It is wrong for him to “czars” floating around I have become increasingly wary ings to a recap of problems at GM. published a “kiss and tell” story by take advantage of private Washington. of what passes as journalism ethics I have a feeling that most people Steven Rattner about his experi- meetings and private in- Regardless of what these days, as well as the ethics or will simply read the Rattner story ences as part of the U.S. auto task formation about people you think of General lack of ethics by government ap- and agree or disagree with the con- force, a post he resigned last sum- and companies and blast Motors and their past pointees. We should demand a high- tent without regard to the ethical mer. He followed up with a speech them in public. No jour- and present executives, er standard of conduct for both. considerations. and several interviews. nalist seems to have no- no one who was regulat- There is plenty of juicy gossip That’s too bad. I would only sug- Rattner resigned from the task ticed his complete lack of ing them and making de- about the fate of Mr. Rattner, his gest that the publishing company force a few weeks after it became ethics while they chase a cisions that determined potential illegal conduct with the had to be the ethical wall — easily public that he was being investi- juicy story. the life or death of the pension fund and his methods of breached by a story written by a gated in connection with an al- I am sure that he was corporation should be acquiring state government funds questionable character. leged kickback scheme at New never asked by the Oba- discussing the informa- for his company. It’s too bad that Rattner didn’t York’s state pension fund. ma administration to tion and the conversa- His Fortune article and subse- understand the impropriety of his Rattner’s article and his public sign a confidentiality tions that he had. quent media attention might redi- actions. It’s equally too bad For- statements are conduct unbecoming agreement, but that requirement It is just as bad for Fortune to rect interest news media might tune magazine became his co-con- any past or present federal official. might make sense with all the give him a platform. have from his own financial deal- spirator. 20091026-NEWS--0009-NAT-CCI-CD_-- 10/23/2009 10:43 AM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Family foundations: Know when to close

More family founda- pecially these small ones, likelihood that a foundation will that the economic impact of the gan has benefitted enormously tions should plan in ad- would benefit from estab- stray from the original vision and foundation is not separated in time from the long-term vision of the vance to shut their doors. lishing a “sunset date.” values of the founder(s). Too many from when the assets were accu- Kellogg, Mott, and Kresge families, This has nothing to do Today, most of us are family foundations fail to consider mulated. Many founders want to to name a few. But for those with with their performance or struggling to do more with what the foundation will be like af- give back to their community. A more modest wealth, a sunset date the current economy and less. By adopting a sunset ter the founder is gone. Yes, a foun- sunset date provides a more direct can increase impact as well as the everything to do with date, a family foundation dation can be a wonderful tool to link between the time and the founders’ sense of fulfillment. their long-term success. can maximize its impact keep your children, and even your place that the assets were earned. So the best advice for family According to 2008 fig- over a finite amount of grandchildren, working together How do you determine a sunset foundations: establish a sunset ures, there are 2,306 foun- time. Most family founda- to perpetuate the family’s charita- date? There is no easy rule, but 25 date, or consider alternatives for dations in Michigan; 80 Mark Neithercut tions limit their annual ble goals. But what about 50 years years to 50 years is often a useful setting up a foundation in the first percent of them family founda- grant-making to 5 percent of their or 100 years later? When a sunset life span for a small family founda- place (e.g. donor-advised fund). In tions. The Foundation Center re- assets, as required by the IRS. Yet, date is adopted, the founder enjoys tion. This allows the board to be other words, ride off into the sun- ports that 48 percent of family if a foundation focused 100 percent a much greater sense of fulfillment composed of people who knew the set before riding off track. foundations awarded less than of its assets on a finite period, say, by not only seeing the greater im- founder(s) and understand their Mark Neithercut is principal and $50,000 in grants in 2007 and 59 per- 25 years, it should have much pact, but by receiving the thanks values and vision. founder of Neithercut Philanthropy cent had less than $1 million in as- greater impact during that period. and praise that he or she deserves. Many large foundations are en- Advisors, with offices in Detroit and sets. Most family foundations, es- Sunset dates also reduce the Finally, sunsets dates ensure dowed in perpetuity, and Michi- Chicago.

LETTERS CONTINUED A NEW PERSPECTIVE ON FIXED INCOME ■ From Page 8 Democrats is endangering our economies and will lead to more GENERATE HIGHER and more unemployment if they are not confronted on this now. So a “good job” goes out to those who will protest the length of time FIXED INCOME YIELDS it takes to get permits for power plants. It’s about time. Jeffrey Scott Troy ‘Clunker’ flaws many Editor: I wanted to respond to your Aug. 17 article “Clunkers program could detour some charity car do- nations.” As an auto industry retiree, I have an opinion concern-

ing cash for clunkers. In my mind, TE it was a knee-jerk reaction to the national and local economic down-

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Page 10 CRAIN’S DETROIT BUSINESS October 26, 2009

REPORTER’S NOTEBOOK

Chad Halcom COST CONTROLS covers law, Employers seek legal advice on manufacturing and defense. Call performance issues, Page 12 (313) 446-6796 or write chalcom @crain.com. Law Chad Halcom Gender identity complaints rare Companies that are already conscientious about workplace diversity training are unlikely to be Tread carefully affected by a push to make a new protected class of workers for sexual orientation or gender identity. Michelle LeBeau, shareholder at the Bloomfield Hills office of Ogletree, Furloughs useful for cost-saving, but not without risks Deakins, Nash, Smoak & Stewart P.C., said she has assisted dozens of Long’s Bloomfield Hills of- “The more often it hap- companies with training on workplace BY CHAD HALCOM diversity and civil rights issues. She CRAIN’S DETROIT BUSINESS fice, who specializes in fur- pens, as you change the work COMPLICATING FACTORS suspects most of them already respond loughs in the firm’s labor and and the pay he complex legal land- employment practice group. schedule, Some legal pitfalls of furloughs to issues surrounding gay, lesbian, scape of employee fur- for employers include: bisexual and transgender workers much “The private sector faces the more it T loughs has driven new Employee classification: like other civil rights concerns. some greater exposure to it starts to work to law firms helping Salaried executive or But Michigan does not currently than the public sector be- look like administrative employees companies avoid violations of cause there’s an allowance you’re try- count sexual orientation or gender the Fair Labor Standards Act classified as “exempt” under identity among protected classes under for salaried ing to treat the federal Fair Labor and other laws. the state’s Elliott-Larsen Civil Rights govern- the exempt Standards Act can allege the Workplace furloughs and Act. The Legislature and Congress both ment work- employees company essentially treats have pending legislation to add such temporary shutdowns have ers to have like they’re them as hourly employees if classes to federal and state law. become an alternative for lo- their pay really their rate of pay varies too cal companies seeking to Trebilcock much with fluctuations in “It’s a new (proposed) obligation, and reduced hourly em- shore up labor costs without hours worked. whenever there’s a new obligation during fur- ployees,” said Chris Trebil- there’s a great deal of sensitivity and laying off more staff — but loughs.” cock, principal at Miller Can- Work off the clock: Also a violation of the Fair Labor awareness of it, and that leads to they are not without pitfalls. A federal field’s labor and employment Partner attorneys at major Standards Act, this can workplace training or advising (clients) report on practice. include work that nonexempt to accommodate or enforce the new firms such as Detroit-based judicial “Generally speaking, if you Butzel Long P.C., Dykema Gos- Patterson hourly workers accomplish in provisions,” she said. “After that, business of attach it to a complete pay pe- the office or from home by e- whether you see new claims (of sett P.L.L.C. and Miller, Can- the United States courts notes riod or institute change over mail or mobile devices during violations) might be a question of how field, Paddock and Stone P.L.C. that lawsuits under the labor a period like six months or a furlough days, or any hours comfortable people are with reporting.” all reported an uptick in fur- standards act for misclassifi- quarter, that works better, worked at a time when the The federal Employment Non- lough business. Each handled cation, off-the-clock work and and it’s how companies al- employer understands they are Discrimination Act, introduced over the furlough matters for about a other violations jumped to ready tend to look at their not being paid. summer, would amend federal civil dozen companies each in 7,310 cases in 2007 compared own accounting.” Unemployment insurance: If rights law to prohibit discrimination their firms’ employment with 4,207 the previous year, Other legal issues that a furlough lasts for at least against employees on the basis of practices over the past 12 and more than four times the arise from furloughs include one complete pay period, sexual orientation or gender identity, for months. That compares with some employers may have to 1,580 filings in 1995. But local hourly employees taking time determine whether portions of nonreligious civilian organizations with virtually none the preceding attorneys said almost none of “off the clock” to work from more than 15 employees. year. their workforce become their FLSA work involved home while on furlough, eligible for unemployment A 2007 version of the bill passed The lion’s share of that furloughs until the closing worker eligibility to collect compensation. the House in the most recent session work went into compliance weeks of 2008. unemployment during a fur- of Congress but died in the Senate. Floor pay rate: On rare with the federal Fair Labor Furloughing exempt em- lough and occasionally the occasions, truncated Acting Chairman Stuart Ishimaru of Standards Act provisions for ployees, cutting their loss of exemption status when workweeks or furloughs and the Equal Employment Opportunity “exempt” employees — those salaries accordingly, and pay cuts become too steep. proportional pay cuts — for Commission said last month the who draw a salary rather then reinstating them to a Patterson said he has example, one week off out of a Obama administration supports two-week pay period and an legislation protecting lesbian, gay, than collect hourly pay and full work schedule and full counseled more than a dozen have executive, administra- pay could leave an employer clients in the past year on accompanying 50 percent loss bisexual and transgender employees. of pay — may move employees tive, professional or some liable for lost pay, overtime, furloughs. A bill in the state House to include to a rate of pay temporarily LGBT employees in ELCRA was types of IT/computer jobs. attorney fees and damages Private-sector employer below the minimum $455 per introduced in February but has “That’s probably the if employees sue or chal- queries have come from week or $23,700 per year in remained idle in its Judiciary Committee biggest mine in the minefield lenge the practice before automotive suppliers pay allowed under law for for the past several months. of issues,” said Scott Patter- the U.S. Department of exempt employees. See Furloughs, Page 11 LeBeau said she has seen very little son, shareholder at Butzel Labor. litigation against local employers based on sexual orientation or gender identity in her practice, which includes about 80 percent litigation defending employers in labor and employment cases. The other 20 percent of her practice is largely compliance and regulatory work, often counseling local companies in developing training programs and creating workplace policies on issues such as workplace diversity. Most of those companies, she said, deal actively with complaints and foster an inclusive atmosphere for LGBT ISTOCKPHOTO.COM employees, though not as many have a specific training program or written policies in place for their workforce. “How many companies include that actively within their training programs for the employees would be really hard to say, because it’s harder to offer that kind of training without framing it around a legal authority,” she said. 20091026-NEWS--0011-NAT-CCI-CD_-- 10/23/2009 11:59 AM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 11 Focus: Law Furloughs: Useful, risky ■ From Page 10

trying to weather bankruptcy restructuring and related shutdowns over the summer for now- Generally, the less General Motors Co. and Chrysler “ Group L.L.C., he said, while public- often you change sector queries came mainly from municipal governments. your workforce Automotive suppliers explored furloughs in 2009 as a way to hours and pay, the shave payroll costs without los- ing a workforce that would keep better off you’ll be. them competitive. Dearborn- ” based International Automotive James Hermon, Components Group North America Dykema Gossett P.L.L.C. had at least one furlough in May, Auburn Hills-based BorgWarner Inc. announced temporary shut- budgets. downs starting last December to Trebilcock said he counseled coincide with OEM shutdowns, eight to 10 companies on fur- and Van Buren Township-based loughs in the past year, and the Visteon Corp. shortened its work- practice group worked with a week during January and had in- dozen or more companies, com- termittent furloughs for salaried pared with little or no furlough workers later in the year. business in 2008. James Fisher, director of cor- None of those matters has re- porate communications at Vis- sulted in litigation, he said, but teon, said the maker of automo- some companies that had consid- tive interiors, electronic ered furloughs later chose layoffs, components and lighting systems pay cuts or negotiated labor con- initiated the temporary layoff pol- cessions on benefits after hearing icy earlier in the year, before the of the legal issues. company filed for bankruptcy Occasionally, some employers protection in May. Since then it has implemented may cut pay so deeply that their the policy intermittently and employees fall below the mini- used it more frequently around mum $455 per week or $23,700 per the times of various OEM shut- year to be exempt under the downs. Fisher said he is unaware FLSA, but Trebilcock said that is of any litigation or regulatory is- rare. sues arising from the policy. “There’s no bright line, in “We were fully aware of the terms of a point where the De- regulations and laws when we im- partment or Labor does or does plemented the policy,” he said. not see a possible violation” on “And we have adhered to (the exemption issues, said James laws) fully.” Hermon, member-shareholder at Visteon has more than 2,500 Dykema in Detroit. “But general- U.S. employees, including about ly, the less often you change your 1,500 exempt or salaried workers. Don’t Run Out of Generator Fuel! workforce hours and pay, the bet- Nonprofits also have used fur- ter off you’ll be.” loughs to manage expenses. Patricia Nemeth, founder and William Jones, CEO of Focus: managing part- AN HOPE in Detroit, said the organi- AR TE ner of Nemeth zation already had made staff re- U E Burwell P.C. in G D ductions before imposing two Detroit, esti- weeklong furloughs on noncon- mates her firm GENERATOR secutive weeks during August. Focus: HOPE has about 220 em- has counseled ASSURANCE ployees. at least 50-75 “We faced a situation where we clients in the were already operating pretty last 12-18 F PLAN close to the bone and wouldn’t be months on wage able to reduce further without Nemeth and hour is- U sues, and it is likely the most ac- E Y having to elimi- L L nate some im- tive area of practice for the firm. SUPP portant ser- High interest in furloughs is vices,” he said. one reason for the increased busi- “Unfortunately, ness, she said, as well as local em- Generator Fuel When You Need It Most! we still needed ployers trying to contain over- to tighten our time and other labor costs by budget and attempting to classify some em- looked at other ployees salaried workers. approaches.” Patterson said most companies Jones The organiza- that consult with an attorney and tion also imposed a four-day check the law have no trouble workweek in June, July and Au- making a furlough plan that can gust except in programs that re- work — but most litigation and quire daily service, such as food regulation enforcement from the for senior citizens, along with a Department of Labor seems to fall 10 percent pay cut. The full work- on employers who forged plans on week has been restored, but the their own without considering pay cut remains in effect, Jones the law. said. So far, no legal issues have “It’s one of these things where emerged from the changes. Jones once the genie’s out of the bottle, said the organization has not it’s almost impossible to fix,” he To Learn More: scheduled another furlough — said. 800-878-2000 but he couldn’t rule one out in the Chad Halcom: (313) 446-6796, chal- coming year, depending on future [email protected] www.atlasoil.com/generator 20091026-NEWS--0012-NAT-CCI-CD_-- 10/23/2009 11:08 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 26, 2009 Focus: Law VEBA hires CIO, files federal proposals Law inquiries move

BY BARRY BURR assets. The fund will consist of di- cials and six independent mem- CRAIN NEWS SERVICE versified investments and securi- bers. ties of the auto companies. The three-member investment The new UAW voluntary em- GM and Chrysler have filed pro- committee consists of two indepen- from job cuts to other ployee beneficiary association posals with the U.S. Department of dent trustees: Olena Berg-Lacy, for- won’t officially open for business Labor’s Employee Benefits Security mer assistant secretary of the La- until Jan. 1. But the association, Administration seeking exemp- bor Department’s EBSA, and with more than $37 billion in as- tions under the Employee Retire- Robert Naftaly, retired president sets, is hiring staff and working on ment Income Security Act to con- and CEO of PPOM, an independent labor cost controls legal requirments of operation. tribute company securities to the operating subsidiary of Blue Cross Eric Henry, who resigned in Au- VEBA. The EBSA, which must ap- Blue Shield of Michigan. The third BY CHAD HALCOM higher and lower producers. gust as executive director and CIO prove the exemption, has opened a member will be UAW trustee CRAIN’S DETROIT BUSINESS Among the moves that further of the $15.6 billion Texas Municipal 45-day period for each proposal for Daniel Sherrick, director of the seem to reflect this trend toward Retirement System based in Austin, submission of public comments on union’s legal department. Employer inquiries to local labor performance, Fishman said, are will lead the VEBA’s investment the proposals. Michigan-based independent lawyers point toward a shift away the growth in client queries about staff as CIO. GM filed its proposal in Septem- board members include: David from further job cuts in favor of oth- creation of new employment poli- The VEBA is expected to be ber; Chrysler’s proposal was filed Baker Lewis, chairman and CEO of er kinds of labor cost controls. cies, discipline questions and drug based in Ann Arbor. earlier this month. law firm Lewis & Munday P.C., De- Employers are seeking advice testing in the workplace. The association was created The VEBA was created through troit; Marianne Udow-Phillips, di- on such topics as performance- Creation and administration of through agreements with General labor contracts with the three auto rector of the Center for Healthcare Re- based job cuts, labor concessions, policies, handbooks and benefits Motors Co., Ford Motor Co. and companies before GM and Chrysler search and Transformation; and furloughs and ways to prevent was the second-most popular topic Chrysler Group L.L.C. to shift the re- filed for bankruptcy protection this Edward Welch, professor emeritus, unionization. These gained inter- on Fishman’s survey of client mainder of their retiree medical year. Both companies emerged School of Labor and Industrial Re- est in terms of client requests queries, up from No. 6 the previous care obligations to the new trust. from their bankruptcies weeks lat- lations, Michigan State University. since late 2007. year. Layoffs, closings and unem- Ridgeway Partners L.L.C., with U.S. er under a bailout plan that gave The VEBA is searching for inde- By comparison, consultations ployment climbed to No. 4 as a offices in New York and Boston, the VEBA part ownership in the re- pendent trustee companies to over- with lawyers about layoffs, clos- client topic, compared with No. 5 was hired to assist in recruiting structured companies. Ford did not see the securities of GM and ings and unemployment remain the previous year and No. 6 in 2006; candidates for positions. file for bankruptcy protection. Chrysler, a primary condition of high but are not gaining momen- but that topic has fluctuated steadi- The VEBA is expected to rely on The VEBA has an 11-member the DOL exemptions, if granted. tum, attorneys said. ly between No. 4 and No. 6 since the external personnel in managing its board made up of five UAW offi- From Pensions & Investments. Wage and hour disputes, over- beginning of the decade. time and payroll issues within the Patricia Nemeth, founder and workforce have been the top topic of managing partner of Nemeth Bur- client calls and inquiries, according well P.C. in Detroit, also ranked cre- to partners at both Bodman L.L.P. ation and administration of em- and Nemeth Burwell P.C. in Detroit. ployment policies among the But Steven busiest fields of practice — an area Fishman, part- that sometimes moves cyclically ner and chair- with the economy but also shifts man of the with changes in the law. She said a workplace law few clients have even sought coun- group at Bod- sel on matters related to hiring new man, notes that employees, a first in some time. wage and hour “You always hear the negative issues have client needs first. It’s a while before been No. 1 every that turns around,” she said. “This year except one Fishman isn’t something I’ve heard a lot yet, going back to maybe from three employers or so 2002 — a trend he said reflects that in the past two months. But I had Michigan’s economy “never recov- heard nothing like that for most of ered from 9/11” and is often among the year before it.” the last of states to leave a reces- Substance abuse testing was in a sion. three-way tie for No. 6 in Fish- Fishman started the annual Sur- man’s list last year, compared with vey of Workplace Priorities and ninth place the previous year. It Trends in 1997, as president of was not even ranked as a category Bloomfield Hills-based The Fishman in 1999, when Michigan unemploy- Group P.C. Bodman hired on The ment had dipped below 4 percent. Fishman Group’s attorneys in July Mark Fillipp, partner and direc- 2008, and the latest survey reflects a tor at labor em- blended year of data before and af- ployment law at ter their absorption into the firm. Troy-based The survey tabulates only client Kemp, Klein, and prospective-client inquiries, Umphrey, Endel- and results do not necessarily re- man & May P.C., flect the areas of client retainers, lit- said his firm igation or counseling services. was also seeing Several changes in the top 10 top- a surge of new ics of client interest do not seem re- interest in drug cession-driven, Fishman said. testing and There seems to be a move from workplace poli- Fillipp layoffs toward “performance enhancing cuts” that keep staff levels cy on substance abuse. But he at- constant but replace underperform- tributes that more to the Michigan ing employees with better ones. Medical Marihuana Act, passed by “The Detroit area, particularly voters as a ballot proposal last No- in the automotive employers, has vember. already gone through a leaning- Client companies want to know out period, and further structured whether they need to adapt or re- cuts might risk a company becom- vise their zero-tolerance policies ing uncompetitive,” he said. “The for drugs in the workplace to com- focus now could be on workforce ply with the act, Fillipp said, and changes that improve efficiency he agrees the current state of the and performance.” law is unclear. An example of performance-en- Also climbing as a topic of inter- hancement related work would be est is the state of the law on union counseling employers on perfor- organization and labor contract ne- mance evaluations. An employer gotiation, Nemeth and Fishman might seek advice on how often to said. MICHIGAN s ILLINOIS s FLORIDA s NEW YORK s OHIO s CANADA s MEXICO s POLAND s CHINA do them or specific things to dis- Chad Halcom: (313) 446-6796, cuss with employees to identify [email protected] 20091026-NEWS--0013-NAT-CCI-CD_-- 10/23/2009 11:03 AM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 13

REPORTER’S NOTEBOOK

Sherri Begin Welch CRAIN’S LIST: LARGEST FOUNDATIONS writes about Ranked by 2008 assets, Page 20 nonprofits and services. Call (313) 446-1694 or write [email protected] philanthropy Sherri Begin Welch Estate tax limbo stalls planning Experts expect the Obama Beyond filling gaps administration to extend the current estate tax structure — pre-empting its scheduled one-year repeal in 2010. Philanthropy moves to guiding economic development That would be in line with the indications the president gave during BY SHERRI BEGIN WELCH the election campaign, but the one- CRAIN’S DETROIT BUSINESS year patch would still leave the estate planning world in limbo for 2011. ith its well-known troubles Estates valued at $3.5 million or less and lesser-known assets, are exempt from federal estate taxes W metro Detroit is the per- Mariam Noland, this year, with estates valued at more fect laboratory for economic president, Community facing a maximum tax of 45 percent. development work, say local Foundation for Based on phase-in provisions of the and international foundations Southeast 2001 Tax Act, the estate tax is working in the region. Michigan, scheduled to be repealed in 2010 “Detroit faces a lot of prob- stands in front and then come back in 2011 with a lems now, but we also think of University $1 million estate tax exemption and a there’s potential for real innova- Prep Science 55 percent maximum estate tax rate. tion and progress working with and Math High School under The tax plan Obama introduced while people in the region and other philanthropic construction in campaigning calls for locking in Detroit. The partners,” said permanently the 2009 rate of 45 WEB EXTRA foundation percent for estates valued at $3.5 Rick McGahey, provided a $1.5 million or more. Growing Detroit director of im- million grant to companies: NEI pact assess- aid in the $15 But whether that plan would include a partnerships for graduated rate structure for taxable entrepreneurship, ment and for- million project. estates was not made clear during www.crains mer program DUSTIN WALSH/CRAIN’S DETROIT BUSINESS the campaign. detroit.com officer in the The general feeling is that the New York- NEW ECONOMY INITIATIVE KEEPS PROJECTS GOING administration will freeze the estate based Ford Foundation’s econom- tax, said Tim Bearden, founder and ic development unit. The New Economy Initiative of Southeastern Michigan continues foundation-led economic managing partner of Stonebridge Ford Foundation offered one development work that has been under way for Financial Partners in Bingham Farms. of its largest-ever economic development grants — $25 million several years. Jointly funded projects include: But many people have been putting Detroit Neighborhood Fund: The W.K. Kellogg off their estate planning because of — to spur additional foundation investment in an initiative to Foundation in late 2005 made a grant of the federal estate tax limbo, he said. $10 million and the Ford Foundation $5 million to help restore Southeast Michi- “We have been recommending that the Community Foundation for Southeast Michigan gan to a leadership position in rather than putting (estate planning) to fund efforts to create stronger neighborhoods off, people should make an the global economy. extending north from the Detroit RiverWalk. arrangement with their attorney that The Battle Creek-based W.K. (Includes University Prep school, above.) would include a free update if a law Kellogg Foundation provided the Detroit RiverWalk: The Troy-based Kresge change has an impact on their plan match for the grant, and eight Foundation contributed $50 million to this within a specified time frame — i.e., others chipped in the differ- riverfront walkway, while Kellogg contributed $5 DUSTIN WALSH/CRAIN’S DETROIT BUSINESS 12 to 24 months,” Bearden said. ence between 2006 and early million, Hudson-Webber Foundation $2.5 million, Kresge Foundation President Rip Rapson stands in 2007 to establish the $100 mil- and the McGregor Fund and New York-based Ford Since the economic environment is front of the Arts League of Michigan in Detroit’s Foundation $2 million each. Harmonie Park. Kresge has provided grants to the tenuous and estate planning is lion New Economy Initiative of Southeastern Michigan, the Eastern Market: center totaling $75,000 over three years. discretionary, most lawyers will Kellogg and Kresge probably agree, he said. largest foundation-led economic development initiative have contributed $850,000 in 2008 to the Detroit Economic At speaking events this fall, John $4.5 million to fund Growth Corp. for improvements to the Harmonie in the country. Buckley, majority chief tax counsel, vendor shed Park area, including renovation of the famed Other funders were: the De- U.S. House Committee on Ways and renovations (left), Harmonie Club. In addition, the Arts League of troit-based Community Founda- Means, has indicated his expectation parking Michigan’s Virgil H. Carr Cultural Arts Center has for a one-year extension of the $3.5 tion for Southeast Michigan, improvements and received a yearly Kresge grant. (Photo, above) million exemption and 45 percent Southfield-based Max M. and other upgrades to Hudson-Webber Foundation has made grants to the country’s oldest rate in 2010. Health care reform, Marjorie S. Fisher Foundation, the Detroit Economic Growth Corp. for new business Detroit-based Hudson-Webber farmers’ market. attraction, to Goodwill Industries of Greater Detroit, however, is is taking first priority over topics like estate tax reform, said Foundation, Miami-based John S. Lower Woodward Gap Financing Fund: By the for retraining the unemployed and to work being spring of 2007, Kresge had granted $7 million done by Ann Arbor think tank Michigan Future on Robert Kass, partner, Barris, Sott, and James L. Knight Foundation, and Hudson-Webber $2.5 million to provide gap revitalizing the region. Denn and Driker P.L.L.C. in Detroit. Troy-based Kresge Foundation, McGregor Fund in Detroit, Flint- financing for residential development along a It’s also made grants for efforts such as the 15-by- With a $3.5 million exemption, the portion of Detroit’s Woodward Avenue. 15 initiative, an effort to bring 15,000 young, constituency for full repeal of the based Charles Stewart Mott Foun- dation and Skillman Foundation ShoreBank Enterprise Detroit: By the spring of educated people to greater downtown by 2015. estate tax will be greatly reduced and 2007, Ford Foundation had committed $8 million The Skillman Foundation in 2006 committed the momentum for repeal lost, said in Detroit. and the John S. and James L. Knight Foundation “I’ve been part of collabora- $100 million over 10 years to foster safe and Kass, also a member of the board of over $3.9 million in grants and low-cost loans to supportive environments for families in six Detroit directors of the Planned Giving tives, but at the (NEI) scale, spur new economic development in Detroit. neighborhoods. More than 65,000, or a third of Roundtable of Southeast Michigan, in and that quickly was amazing,” Independently funded projects include: Detroit’s children, live in the target neighborhoods. an e-mail. Harmonie Park: The Kresge Foundation granted — Sherri Begin Welch At the $3.5 million level, only about See Philanthropy, Page 14 15,000 estate tax returns will be filed this year, and of those, only perhaps half will pay estate tax, Kass said. MORE ON PHILANTHROPY “Thus, as a practical matter, for the Boards: The overlapping Capital campaigns: Outstanding givers: Web Extra vast majority of Americans, the $3.5 brain trust behind the top Educational institutions Association of Fundraising Foundation financials: Leveraging assets: million exemption is tantamount to grant-making foundations in fare among the best due to Professionals honors Michigan grant tallies and Foundations’ collaborative repeal of the estate tax,” he said. Michigan, Page 15 earlier start, Page 16 philanthropy leaders, assets for the foundations work in neighborhoods Page 18 most active in the state 20091026-NEWS--0014,0015-NAT-CCI-CD_-- 10/23/2009 11:21 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS October 26, 2009 Focus: Philanthropy Thank You for Your Support Philanthropy: New role ■ From Page 13 Lawrence Technological University gratefully acknowledges the said Kellogg Foundation Presi- mechanisms and bleak prospects dent Sterling Speirn. for business, foundations saw the generosity of the donors, board The New Economy need to get Foundation itself is not more heavily members, foundations, corporations, going to fix the Detroit- The conditions involved in and volunteers who generously area econo- “ targeted eco- my, said in southeastern nomic devel- invest in our students, the leaders David Egn- opment, Rap- er, execu- Michigan are son said. of the future. tive direc- The eco- tor of the perfect for nomic pic- New Econo- ture of South- my Initia- seeing what east Explore nearly 100 undergraduate, master’s, tive and Michigan — and doctoral programs in Colleges of president of works here and based on un- Architecture and Design, Arts and Sciences, the Hudson- Engineering, and Management. employment, Webber Foundation. In- then bringing it population stead, it’s making to scale. contraction Lawrence Technological University grants to stimulate the and real es- 21000 West Ten Mile Road economy, change the ” tate values — Southfield, MI 48075-1058 David Egner, ltu.edu culture and spark in- isn’t pretty. 800.CALL.LTU • [email protected] • New Economy Initiative novation. If successful, While the it is expected to be a nation’s un- case study in future foundation employment rate hit 9.8 percent in collaboration. September, Michigan’s rate re- “The conditions in southeast- mained the highest in the country ern Michigan are perfect for see- at 15.2 percent, according to the ing what works here and then U.S. Department of Labor Bureau of La- bringing it to scale, replicating it bor Statistics. Both Wayne and Ma- in a way that can impact the econ- comb county’s unemployment for omy in measurable ways,” he said. See next page So far, NEI has spent just under 99 women + YOU = $25 million in grants. Those have gone toward, among other projects, an effort to develop Detroit’s New Center as a global center for arts and design, to develop a system to place Crossover of b 25,000 students in internships BY SHERRI BEGIN WELCH Barbara Allushuski, Ann Arbor &ůŽƌŝŶĞDĂƌŬ͕&ĂƌŵŝŶŐƚŽŶ,ŝůůƐ while they attend college in CRAIN’S DETROIT BUSINESS sĞƌŶŝĐĞĂǀŝƐŶƚŚŽŶǇ͕tĞƐƚůŽŽŵĮĞůĚ <ƌŝƐƟŶDĐ>ĂƵŐŚůŝŶ͕ĞǀĞƌůǇ,ŝůůƐ Michigan in the hopes of keeping them in the state, to dƌƵĚǇƵŶĐŽŵďĞƌĐŚĞƌ͕ĞƚƌŽŝƚ dĞƌƌǇDĞƌƌŝƩ͕EŽǀŝ Community Foundation for South- accelerate research at Michi- Joan Binkow, Ann Arbor ŽŶŶŝĞ<͘DŝůůĞƌ͕'ƌĂŶĚZĂƉŝĚƐ east Michigan President Mariam gan’s public universities into Martha Rabaut Boonstra, South Lyon DĂƌũŽƌǇDŝůůĞƌ͕>ĂƚŚƌƵƉsŝůůĂŐĞ Noland first heard of a large philan- new 'ůŽƌŝĂ͘ƌŽŽŬƐ͕'ƌĂŶĚůĂŶĐ ĞďƌĂDŝŶƚŽŶ͕ĚĂ thropic-led economic development startups and to supporting pro- Evelyn Brown, Detroit <ĂƚŚůĞĞŶ^ƟƐŽDƵůůŝŶƐ͕'ƌŽƐƐĞWŽŝŶƚĞ^ŚŽƌĞƐ initiative in northeast Ohio during grams to jump-start entrepre- >ǇŶŶƵƌĚĞůů͕ĞƚƌŽŝƚ ZŚĞĂ͘EŽƌǁŽŽĚ͕ĞƚƌŽŝƚ a meeting of trustees for the John S. neurship and help auto suppliers Michelle Bush, Plymouth ĞůŝŶĞKďĞŝĚ͕'ƌŽƐƐĞWŽŝŶƚĞtŽŽĚƐ and James L. Knight Foundation. diversify. ŽďďŝĞƵƚůĞƌ͕'ƌĂŶĚZĂƉŝĚƐ <ĂƚŚǇKƐǁĂůĚ͕ůŽŽŵĮĞůĚ,ŝůůƐ The idea of foundations coming NEI has developed long-term DĂƌŐĞǇŝŶŐƚŽŶ͕'ƌĂŶĚZĂƉŝĚƐ Francine Parker, St. Clair Shores together to help metrics to gauge its progress, Carolyn J. Cassin, Grosse Pointe Farms sŝǀŝĂŶWŝĐŬĂƌĚ͕ůŽŽŵĮĞůĚ,ŝůůƐ spur economic things like business startups and Debbie Dingell, Dearborn DĂƌŝĂŶŶĞhĚŽǁͲWŚŝůůŝƉƐ͕ŶŶƌďŽƌ WEB EXTRA development was job creation, per-capita income :ĞĂŶŶƌŝŐŚƚ͕'ƌĂŶĚZĂƉŝĚƐ ^ĂŶĚƌĂ͘WŝĞƌĐĞ͕DŝůĨŽƌĚ Board member an enticing and educational attainment. >ŝŶĚĂ&ŽƌƚĞ͕ĞƚƌŽŝƚ <ĂƚŚůĞĞŶ^ƚĞǁĂƌƚWŽŶŝƚǌ͕,ŽůůĂŶĚ compensation: thought — if it Mary Fowlie, Birmingham Nancy Renick, Grosse Pointe Shores Practices mixed, could gain trac- >ŝƐĂDŽǁĞƌ'ĂŶĚĞůŽƚ͕'ƌŽƐƐĞWŽŝŶƚĞ&ĂƌŵƐ ŶĚƌĂZƵƐŚ͕tĂǇŶĞ www.crains No time for small steps detroit.com tion in northeast ^ƵǌĂŶŶĞ'ĞŚĂ͕'ƌĂŶĚZĂƉŝĚƐ DĂƌƚŚĂ^ĂĐŚƐ͕tĞƐƚůŽŽŵĮĞůĚ Ohio, certainly it Joan S. Gehrke, Grosse Pointe Nancy Salvia, Rochester NEI was created before the could work in ĞƚŚ'ŽĞďĞů͕'ƌĂŶĚZĂƉŝĚƐ Rosemary Sarri, Ann Arbor huge drop in the economy, but it metro Detroit, she thought. ^ƵƐĂŶĂǀŝĞƐ'ŽĞƉƉ͕ZŽĐŚĞƐƚĞƌ,ŝůůƐ ůŝǌĂďĞƚŚ^ĐŚŵŝĚƚ͕'ƌŽƐƐĞWŽŝŶƚĞ^ŚŽƌĞƐ was clear to everybody that some- It didn’t take her long to convince ŝŶĚǇ'ŽŽĚĂŬĞƌ͕ZŽǇĂůKĂŬ DĂƌǇ^ĞĞŐĞƌ͕ĂůĞĚŽŶŝĂ thing large in scope was needed, Community Foundation Chairman DĞĞŐĂŶ,ŽůůĂŶĚ͕'ƌĂŶĚZĂƉŝĚƐ WĂƚƌŝĐĞ>͘:͘^ŝŶĐůĂŝƌ͕ZŽĐŚĞƐƚĞƌ,ŝůůƐ said Mariam Noland, president of Alan Gilmour, retired vice chair- ŽƫĞ:ŽŚŶƐŽŶ͕'ƌĂŶĚ,ĂǀĞŶ EĂŶĐǇ^ŬŝŶŶĞƌ͕'ƌĂŶĚZĂƉŝĚƐ the Community Foundation for man of Ford Motor Co., and board ,ĞůĞŶ<Ăƚǌ͕ůŽŽŵĮĞůĚ,ŝůůƐ Nancy Smith, Grosse Pointe Park Southeast Michigan. member Paul Dimond, who is of DŝĐŚĞůůĞ<ůĂƐƐĞŶ͕ƌŝŐŚƚŽŶ ^ŚĂƌŽŶtĂůůĂĐĞ^ŶǇĚĞƌ͕ůŽŽŵĮĞůĚ,ŝůůƐ “Philanthropy alone couldn’t counsel at Miller, Canfield, Paddock tĂůůǇ<ůĞŝŶ͕ŚĂƌůĞǀŽŝǆ ĂƌŽůĞdŝďďŝƩƐ͕'ƌŽƐƐĞWŽŝŶƚĞ&ĂƌŵƐ fill the gaps we were starting to and Stone P.L.C. in Ann Arbor, chair- DĂƌǇ<ƌĂŵĞƌ͕ĞƚƌŽŝƚ Lorna Thomas, Detroit see in the needs of the communi- man of Ann Arbor-based national DĂƌǇdƌĞĚĞƌ>ĂŶŐ͕'ƌŽƐƐĞWŽŝŶƚĞ&ĂƌŵƐ ^ǇĚŶĞǇtĂůĚŽƌĨ͕ZŝĐŚůĂŶĚ ty.” real estate company McKinley Inc. DĂƌŝůǇŶ>ĂŶŬĨĞƌ͕ĂƐƚ'ƌĂŶĚZĂƉŝĚƐ ĂƌŽůǇŶŶtĂůƚŽŶ͕tĞƐƚůŽŽŵĮĞůĚ One of the reasons foundations and a former special assistant on Nicole M. Lewis, Detroit >ŽŝƐtĂƌĚĞŶ͕'ƌŽƐƐĞWŽŝŶƚĞ traditionally have been reluctant economic policy to former Presi- <ĂƌĞŶDĂŚĞƌ͕EŽƌƚŚǀŝůůĞ Phoebe B. Weinberg, Grosse Pointe Farms to get involved in economic devel- dent Bill Clinton, of the value in ^ƵƐĂŶDĂƌƟŶ͕zƉƐŝůĂŶƟ Tina Wheeler, Novi opment is because it typically is pulling together a major, founda- As of October 21, 2009 driven by the private sector, said tion-led economic development ini- Kresge President Rip Rapson. tiative for Southeast Michigan. Michigan women empowering women and girls “When you look at broad trends In 2006, they began calling on lo- of investment and capital, it’s cal and out-of-state foundations to to realize their dreams of self-suﬃciency and hard to know how a philanthropic request support, and the $100 mil- enterprise moves markets,” he lion New Economy Initiative of South- social equality resulting in a better society for all. said. eastern Michigan was born. Foundations have tended to fill Crossover among foundation in the gaps that the markets trustees may not be intentional, but leave, Rapson said. For example, it certainly doesn’t hurt when it &ŽƌĨƵƌƚŚĞƌŝŶĨŽƌŵĂƟŽŶĂďŽƵƚƚŚĞDŝĐŚŝŐĂŶtŽŵĞŶ͛Ɛ&ŽƵŶĚĂƟŽŶ͕ if traditional lending dries up, comes to idea-sharing, foundations ŽƌƚŽďĞĐŽŵĞĂPOWER OF 100 WOMEN ŵĞŵďĞƌ͕ foundations have helped with say. ƉůĞĂƐĞĐŽŶƚĂĐƚ>ŝƐĂDŽǁĞƌ'ĂŶĚĞůŽƚ͕ŝƌĞĐƚŽƌŽĨĞǀĞůŽƉŵĞŶƚ͕ funding for community develop- With 56 board members, the Com- ment. munity Foundation has more over- ϯϭϯ͘ϲϰϬ͘ϬϭϮϴĞǆƚĞŶƐŝŽŶϮϬϰŽƌůŐĂŶĚĞůŽƚΛŵŝǁĨ͘ŽƌŐ But with an even more severe lap than other foundations working breakdown of traditional market in Southeast Michigan. 20091026-NEWS--0014,0015-NAT-CCI-CD_-- 10/22/2009 5:30 PM Page 2

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 15 Focus: Philanthropy

From previous page capacity, the busiest U.S. trade funded community development Gund Foundation. NEI also began from funding “but also (through) border crossing, a fifth of the corporations, for example. talking with economic experts such catalyzing activity with other re- August was 18 percent, while Oak- world’s fresh water supply and But NEI “is as Bruce Katz, vice president and gional partners,” said Doug Stew- land reported 14.9, and Washte- North America’s third largest con- very targeted to founding director of the Metropoli- art, executive director of the Fish- naw 9.5 percent. centration of creatives crossing transform the tan Policy Program at the Brookings er Foundation. “NEI foundations The Southeastern Michigan Coun- sectors, including music, engi- (local) economy Institution, and benchmarking other aren’t simply collaborating ... and cil of Governments this summer esti- neering and architecture. … by looking at economic development efforts. putting together one set of criteria. mated that Detroit had a popula- Detroit is still one of the largest major things, in- The Southeast Michigan initia- There’s also a lot of partnership tion of about 830,000, down from cities in the country. But unlike cluding entre- tive spent nearly a year and a half with the nonprofit groups actually 1.8 million in the 1950s. some of its landlocked peers, it has preneurship crafting a strategy so that its doing the work, as opposed to fun- Meanwhile, real estate foreclo- an abundance of land, said Kel- and talent devel- grants would not “vanish without ders just making a decision and sures are chipping away at the lo- logg’s Speirn. The underused ar- opment and a trace,” Ford’s McGahey said. handing it down.” cal tax base. According to data ob- eas with vacant buildings present changing the Every foundation has its own Egner said as the work contin- Goss tained from the Detroit Office of opportunities for looking at how culture” to val- mission and requirements for grant ues, the NEI is even accelerating Foreclosure Prevention and Response Detroit shrinks or reconfigures its ue learning, work and innova- reports, yet the NEI funders have the payouts. in August, Detroit now has an esti- footprint. tion,” Goss said. willingly accepted a single report “There’s more opportunity and mated 78,000 vacant dwellings, up Economic development is not a from grantees. greater need,” he said. 32,000 in the past three years. core focus area for the Detroit- Foundations have a role to play Sherri Begin Welch: (313) 446- Regional county governments based McGregor Fund, “but we Tapping local, national leaders in economic development not only 1694, [email protected] are projecting Southeast Michi- wanted to participate in the NEI be- NEI is housed at the Community gan’s real estate market will lose cause it’s very important work. Foundation for Southeast Michigan. around $20 billion, or 10 percent, of Our board (felt) The initiative’s 20-member gov- its aggregate taxable value, in 2010. … it was impor- erning board is chaired by local But Southeast Michigan also tant that all of business and arts leader Steven has unparalleled assets, Egner the (largest) lo- Hamp and includes representatives PARTNERSHIP AVAILABLE said. There are opportunities to cal private fun- from all of its funders and other leverage those strengths into pro- ders step up if community and business leaders. grams that will improve the eco- others national- Hamp is principal of Hamp Advisors We invite you to experience the difference that nomic conditions in ways that can ly were being L.L.C. and former president of The private ﬂight travel can make. be measured, long-term. asked to,” said Henry Ford. The region’s assets include: President David NEI benchmarked the Fund for UÊ Ê >ÃÃiÊiÌÀÞÊiÛiÊÊ three tier-one research institu- Campbell. our Economic Future, a northeast- Campbell ÊÊÊ«>ÀÌiÀÃ «ÃÊ tions within 75 miles of each other, Skillman ern Ohio effort that has brought in UÊÜiÃÌÊ«iÀ>Ì}ÊVÃÌÃÊÊÊÊÊÊÊ the “greatest supply chain man- Foundation President Carol Goss more than $55 million from more ÊÊÊÊÌ iÊ>ÀiÌÊ agement program in the world,” said NEI’s leadership structure than 100 organizations, individuals UÊVViÃÃÊÌÊÛiÀÊx]äääÊÊ with 300,000 logistics jobs in the re- and targeted focus are unique. and foundations, including the ÊÊÊ1°-°Ê>À«ÀÌÃÊ gion, unparalleled manufacturing Some foundations have always Cleveland Foundation and the George UÊ*ÌÃÊÞÕÊÜÊ>`ÊÌÀÕÃÌÊ UÊ/À>ÛiÊÊÞÕÀÊÃV i`Õi]ÊÊ ÊÊÊÌÊÌ iÊ>Ài½ÃÊ UÊ->viÊ>`ÊÃiVÕÀi f board members helps diversify ideas American Jet Management >Ê iÊ>ÌÊn£ä°ÓÎÓ°{{{ÎÊÀÊÊ>ÌÊÓ{n°nÈä°ÈÎÇn gion,” Stewart said. “We wouldn’t FOUNDATION BOARD OVERLAP get the diversity of thinking to make this work.” Ⅲ Matthew Cullen: President and Hudson-Webber Sherri Begin Welch: (313) 446- COO, Rock Ventures L.L.C. Ⅲ Phillip William Fisher: Principal, 1694, [email protected] Foundation boards: Community The Fisher Group. Foundation Foundation, Hudson-Webber boards: Community Foundation, Foundation Fisher Foundation Ⅲ Anthony Earley Jr.: CEO, DTE Ⅲ Julie Fisher Cummings: Co- Energy Co. Foundation boards: founder and chairwoman, The Community Foundation, Hudson- Lovelight Foundation. Foundation Webber boards: Community Foundation, Ⅲ W. Frank Fountain: Former senior Fisher Foundation vice president of government affairs, Ⅲ David Baker Lewis: Chairman and then-DaimlerChrysler Corp.; CEO, Lewis & Munday. Foundation president, Daimler Chrysler Corp. boards: Community Foundation, Fund. Foundation boards: Community Skillman Foundation, Foundation, Hudson-Webber Ⅲ Eugene Miller: Former chairman, Ⅲ Alfred Glancy III: Chairman, Unico president and CEO of Comerica Inc. Investment Group L.L.C.; former Foundation boards: Community director, DTE Energy. Foundation Foundation, McGregor Fund boards: Community Foundation, Ⅲ James Nicholson: CEO, PVS Hudson-Webber Foundation Chemicals Inc. Foundation boards: Ⅲ Steven Hamp: Principal, Hamp Community Foundation, McGregor Advisors L.L.C.; former president of Fund The Henry Ford. Foundation boards: Ⅲ Mariam Noland: President, Kresge Foundation, Community Community Foundation for Foundation for Southeast Michigan Southeast Michigan. Foundation Ⅲ Joseph Hudson Jr.: Former boards: Community Foundation, president and CEO, Detroit Medical Knight Foundation Center; founding chairman of Ⅲ Reginald Turner: Member, Clark Community Foundation of Hill P.L.C. Foundation Boards: Southeast Michigan. Foundation Community Foundation, Hudson- boards: Community Foundation, Webber

“We’re looking for experience, omy Initiative. “I think when (over- civic leaders with a deep interest in lap) happens, it’s not by design, but The Kitch firm’s reputation for providing effective counsel and impressive client service philanthropy and a deep knowledge it certainly doesn’t hurt to cross- of the region,” Noland said. pollinate a little bit.” began in Detroit 40 years ago and continues today. Interested in knowing more? Please “That may be similar to what oth- Some overlap is healthy, be- contact Ron Wagner at 313.965.7900 or visit www.kitch.com for more information. er foundations are looking for.” cause board members can bring Not far behind is the Hudson-Web- ideas back from other organiza- ber Foundation, with six of its tions, said Doug Stewart, executive trustees sitting on boards of other director of the Max M. & Marjorie S. foundations working in the region. Fisher Foundation. But foundations “The people who are overlapped working in specific regions need to are … influential community lead- make sure that there are plenty of ers who understand how the com- places for a range of civic leaders Kitch Drutchas Wagner Valitutti & Sherbrook munity works,” said David Egner, to participate. A Professional Corporation president of Hudson-Webber and “If it were the same cast of 10, executive director of the New Econ- that wouldn’t be good for the re- 20091026-NEWS--0016,0017-NAT-CCI-CD_-- 10/22/2009 4:19 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS October 26, 2009 Focus: Philanthropy Some post-crash capital campaigns s

BY SHERRI BEGIN WELCH Wayne State University had raised CRAIN’S DETROIT BUSINESS over $892 million, including dona- tions of specialized equipment and Women take l Timing is everything. software for an engineering lab, Thanks to our more than 350 members who Several large fundraising cam- when it closed out its campaign late Women philanthropists are paigns to support educational insti- last year, far exceeding its $500 mil- playing increasingly important respond to community needs, catalyze solutions tutions closed out over the past lion target. roles in local fundraising efforts. year, having raised the bulk of Oakland University, which had The five largest gifts in Cran- to big challenges and leverage resources their goals before the local econo- raised just over $100 million of its brook Educational Community’s re- to make a big difference in Michigan. my really tanked last fall. $110 million goal a year ago, closed cently completed capital cam- Campaigns launched more re- out its campaign in April, a year paign came from women. cently by several other local organi- early, raising $1 million more than Cranbrook raised $181 million, zations have had its target. exceeding its $150 million target h For 37 years, CMF has been the leading TOP 10 mixed success. “We were very and closed the campaign out a o The University of lucky to have year earlier than planned, after A look at organization working to strengthen, promote Michigan closed out neared the goal launching it in 2002. the biggest its $2.5 billion com- y and increase philanthropy in Michigan. campaigns, prior to the eco- Maxine Frankel, chairman of opposite prehensive capital nomic turmoil,” the Cranbrook page campaign at the end said Susan Academy of Art of last year with more Davies Goepp, and the art mu- than $3.2 billion in vice president of seum’s board of hand, or 28 percent beyond its goal, university rela- governors, and michiganfoundations.org making it the most successful tions and execu- her husband, fundraising campaign in the Ann tive director of Stuart, made a p Goepp Arbor-based university’s history the Oakland Uni- $10 million gift. u and reportedly the largest amount versity Foundation. It was the w ever raised by a public university. “While none of us is immune largest since the p from the economic pressures, the institution’s w Frankel university provides research, edu- 1927 founding, p cation and service that have a posi- when Ellen Booth made a signifi- A tive impact on the community, cant, but undisclosed, gift. m which inspires many of our alumni Other large gifts in the cam- and donors to continue their sup- paign, which totaled another th port and investment in OU.” $25 million, came from Julie Fish- h Cranbrook Educational Community, er Cummings, co-founder and which set a goal to raise $150 mil- chairman, Lovelight Foundation in ci lion to fund new construction, reno- Ann Arbor, and her husband, Pe- le vation and preservation, endow- ter Cummings, Ram Development le ment and operations, had raised Inc. chairman; Susan Flint Coop- o $181.1 million when it ended its er, board member of the Cran- b campaign a year early. Detroit Public brook Institute of Science and the L. Television also wrapped up its daughter of Robert Flint, former ra $22 million drive over the past year. chairman and CEO of Flint Ink d Of the continuing campaigns, Corp.; local philanthropist Rose d many have seen a slowdown in mo- Shuey and Cranbrook Schools le mentum. trustee Virginia Fox, who is the v The Detroit Riverfront Conservancy granddaughter of Cranbrook L raised $2 million over the past year founders George and Ellen Booth. a toward its $140 million campaign, “These women have been long- S bringing its total to $102 million. standing supporters of (Cran- so The Detroit Institute of Arts raised brook) and were motivated at this b $16 million during the past year to- point in time to make transitional m ward its $180 million campaign gifts,” said Michael Hilliard, chief b goal, bringing the total raised to development officer. “It’s impor- H $131 million. tant to catch women’s interest be- p William Beaumont Hospitals raised cause estimates are that 70 per- $13 million during the past year to- cent of the wealth that changes tr 8[mXeZè^ k_\ :i\Xk`m\ Jgì`k1 ward its $170 million goal. hands in this country over next 10 h Fundraising also has been slow to 15 years will transfer to 8KiXej]fidXk`feXc:XdgX`ê]fi::JXe[;\kif`k for Hope Medical Clinic, which oper- women,” he said. p ates Hope Center in Ypsilanti, an Women are also playing a io emergency food distribution and greater role in giving at the Detroit D laundry facilities provider, said Pat Institute of Arts, said Beth Noble, a Tamblyn, campaign co-chair and Yp- vice president of development. K_\:fcc\^\ ]fi :i\Xk`m\Jkl[`\j ::J _Xji\èm\ek\[ >\e\iXc DfkfijË fi`^èXc silanti District president, Bank of Ann \e^è\\iè^ Xe[ i\j\XiZ_ Z\ek\i# n_\i\ k_\ Ô\c[ f] Xlkfdfk`m\ [\j`ê nXj Yfie# Arbor. XjXe \[lZXk`feXcZfdgc\o]fiZi\Xk`m`kp%K_\8%8c]i\[KXlYdXe:\ek\i ]fi;\j`ê<[lZXk`fe# Hope launched a $3 million cam- berg Project launched an effort to c paign in 2007 to expand the center so raise $5.5 million to renovate exist- m cfZXk\[ è;\kif`kËjE\n:\ek\i#`j Xe\e^è\ ]fi \Zfefd`Z[\m\cfgd\ek# _fljè^ le[\iîX[lXk\ it could move to Hope Center the ing homes and construct new ones in d Xe[îX[lXk\[\î\\gifîXdjè[\j`ê2X[\j`êi\j\XiZ_Z\ek\i2*''Y\[jf] jkl[\ek _fljè^2 dental and health care it provided to its Detroit neighborhood and to fund Zfddle`kp flki\XZ_ gifîXdj2 X Zfe]\i\eZ\ Z\ek\i2 [èè^ Zfddfej2 i\kX`c Xe[ ^Xcc\ip jgXZ\j2 the uninsured at greening of the le Xe[k_\?\eip=fi[8ZX[\dp1JZ_ffc ]fi:i\Xk`m\Jkl[`\j# Xe\nglYc`Z d`[[c\Xe[_`^_ jZ_ffc two other sites in area. p ]fZlj\[feXikXe[[\j`ê#fg\iXk\[Yp::JXe[k_\?\eip=fi[C\Xieè^ @ejk`klk\# Xe[ ]le[\[ the city. Last fall, De- th To date, the or- Fundraising has troit-based Matrix th Yp k_\ K_fdgjfe <[lZXk`feXc =fle[Xk`fe% @k Xcjf _Xj jgXZ\ ]fi Zi\Xk`m\ Yljè\jj\j% ganization has “ Human Services be- a raised $2.07 mil- definitely been a gan a $5 million K_\i\`jefk_è^c`b\`kXepn_\i\èk_\nfic[% lion, including a challenge. campaign for ren- th $400,000 chal- ” ovation of its cur- p K_\ :fcc\^\ _Xj cXleZ_\[ X ,, d`cc`fe ]le[iX`jè^ ZXdgX`ê kf jlggfik k_`j(+,d`cc`feè`k`Xk`m\% lenge grant from rent properties to the Troy-based Pat Tamblyn, and acquisition of K_Xebj kfk_\[fefij n_f_Xm\Xci\X[pZfeki`Ylk\[%K_\KXlYdXe:\ek\iËjXdY`k`flj Kresge Bank of Ann Arbor a new central of- sh m`j`feZXefecpY\XZ_`\m\[n`k_k_\g_`cXek_ifg`Zjlggfikf]k_\Zfddle`kp% Foundation. fice. s “Fundraising has definitely been “The clients we serve still need s =fi dfi\ è]fidXk`fe# m`j`k nnn%Zfcc\^\]fiZi\Xk`m\jkl[`\j%\[l# a challenge,” Tamblyn said, “al- our services, now more than ever,” te Zc`Zb KXlYdXe :\ek\i# fi ZXcc *(*%--+%.+.)% though being two-thirds of the way said Jennifer Dale, vice president of there is encouraging.” marketing and development. m In spite of the economy, a few Late last year, St. Vincent de Paul m nonprofits have launched new cam- Detroit launched a $27 million campaigns in the past year: The Heidel- paign. The organization hopes to s 20091026-NEWS--0016,0017-NAT-CCI-CD_-- 10/22/2009 5:26 PM Page 2

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 17 Focus: Philanthropy

CLOSER LOOK AT THE BIGGEST CAMPAIGNS s struggling Crain’s list of largest capital campaigns. A full version of this list is available at www.crainsdetroit.com/lists: Organization/Campaign Goal Raised so far Campaign start Targeted end Henry Ford Health System, Detroit/Henry Ford Health System Envision $250 million $124.8 million Jan. 2007 Dec. 2013 Detroit Institute of Arts, Detroit/Great Art, New Start $180 million $131 million Sep. 2005 2015 ke larger role Beaumont Hospitals, Royal Oak/Campaign for Beaumont Hospitals: $170 million $135 million 2005 2011 Always Learning, Always Discovering, Always Caring e The Henry Ford, Dearborn/The Inspiration Project: $155 million $149 million Oct. 2004 None set nt Campaign to Transform The Henry Ford Estimates are that Detroit Riverfront Conservancy, Detroit/East RiverWalk capital campaign $140 million $106 million 2003 2010 n- “ (tentative) e- 70 percent of the Lawrence Tech. University, Southfield/Capital campaign $75 million $42.7 million July 2006 July 2013 m- wealth that changes College for Creative Studies, Detroit/Cap. Campaign for Taubman Center $55 million $40 million Sep. 2008 Dec. 2010 Oakwood Healthcare Inc., Dearborn/Oakwood Pursuit of Excellence $50 million $20.6 million Jan. 2007 NA n, in Health and Healing et hands in this country Society of St. Vincent de Paul, Detroit/Capital Campaign $27 million $2.1 million Dec. 2008 2013 a er over the next 10 to 15 Eastern Michigan University/Capital campaign, name to be determined NA $30 million 2007 2013 years will transfer to of women.” Michael Hilliard, Cranbrook Educational Community In the absence of corporate support, the DIA approached individual philanthropists to help under- write the Richard Avedon fashion photography exhibition. Avedon was one of the first high-profile photographers to work with i- African American and multiracial models. m- A dozen local women philan- er thropists stepped up to bring the ex- h- hibition to the DIA. d Those women were Patty Black, n civic leader; Nicole Eisenberg, civic e- leader; Mary Anne Gargaro, civic nt leader; Renee Godin, president and p- owner, RGA Model Management; Bar- n- bara Gucfa, director, AlixPartners he L.L.P.; Karla Hall, manager, corpo- er rate contributions and vice presi- k dent and secretary, DTE Energy Foun- e dation; Lindsay Moroun, civic ls leader; Juliette Okotie-Eboh, senior he vice president, MGM Grand Detroit; k Linda Orlans, attorney, founder . and managing partner, ETitle; g- Sharon Madison-Polk, CEO, Madi- n- son & Madison International and DIA is board member; Lauren Rakolta, in al marketing at Detroit-based Wal- ef bridge Aldinger Co.; and Dawn Yuen r- Harvey, dentist in private pediatric e- practice in Grosse Pointe. r- The group collectively con- es tributed $75,000 to help fund the ex- 0 hibition. o Each also contributed their own private gift to bring “Avedon: Fash- a ion Photographs 1944-2000” to the it DIA. The exhibition opened Oct. 18 e, and runs through Jan. 17. — Sherri Begin Welch

to complete it by 2013 and has raised $2.1 st- million to date, said Roseann Royle, in development director. nd Escalating demand makes an excel- he lent case for support, said John Fike, president of Ypsilanti-based Philan- e- thropy Solutions L.L.C. and president of ix the Association of Fundraising Profession- e- als, Greater Detroit Chapter. on “Both Matrix and St. Vincent are in n- that position. They can appeal to the r- public with the need to fund services es to meet increased demand,” he said. of Many nonprofit groups have even of- shifted to fundraising for programs instead of starting capital campaigns, ed said local fundraising consultant Pe- ,” ter Remington. of “It’s not a campaign-friendly climate right now because of the econo- ul my,” he said. m- Sherri Begin Welch:(313) 446-1694, to [email protected] 20091026-NEWS--0018,0019-NAT-CCI-CD_-- 10/22/2009 4:32 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS October 26, 2009 Focus: Philanthropy Gala honors local leaders in philanthropy, volunteerism he 18th annual National Philanthropy Day gala cares as much as he does about Mark Inpatient Unit for Women’s higher education, responding to & Children’s Health. will honor seven individuals and organizations for emerging trends and staying fo- T their contributions to philanthropy and volun- cused on our agility as a technologi- teerism. cal university is a wonderful testa- The gala, hosted by the greater Detroit chapter of ment to his leadership,” said Lewis Walker, president of Lawrence the Association of Fundraising Professionals, begins at Technological University. 5:30 p.m. Nov. 12 at the Hyatt Regency Dearborn. See www.afpdetroit.org for more information. Profiles of the 2009 National Philanthropy Day LLOYD REUSS honorees begin at right. Chairman, Lawrence Technological University board of trustees Former president, General Motors Corp. George W. Romney Award for Lifetime Achievement in Volunteerism ART VAN ELSLANDER Founder and chairman Lloyd Reuss spent 36 years at Art Van Furniture Inc. Big Beaver Area Office Suites For Lease what is now General Motors Co., in- WELL BELOW BIG BEAVER OFFICE RENTAL RATES!!! Max M. Fisher Award for Outstanding cluding three years as president. Philanthropist But he is a technical person by trade, and his interest and com- FLORINE MARK Art Van Elslander’s ambitions mitment to giving back to society President and chair, the WW Group has translated into longtime ser- and insights about consumer be- Campaign chair, Henry Ford West havior helped him reach great suc- vice as a trustee for Southfield- Bloomfield Hospital based Lawrence Technological Uni- cess as a furniture retailer. Edmund T. Ahee Jewel Award for He and his company have given versity. Outstanding Volunteer Fundraiser Reuss has served as a trustee back to the community with ser- since 1978. He became chairman of vice projects and significant finan- Florine Mark has the philan- the board in 1994. cial contributions. thropy bug in her blood. As chairman, he has guided LTU Van Elslander is the owner of As a girl, she would collect mon- KIRTS OFFICE PARK - EAST KIRTS OFFICE PARK - WEST through the selection of two uni- Warren-based Art Van Furniture Inc., ey for charities with her grand- 800-830 Kirts, Troy, MI 1172-1282 Kirts, Troy, MI versity presidents, expanded acad- which operates 30 stores in 29 mother. emic programs and degree offer- cities with 2,500 associates. Suites From 2,588 to 15,523 SF Suites From 1,199 to 30,000 SF When she sold most of her ings as well as a transition to a It is the largest furniture store Weight Watchers franchise, she des- • 8 Single Story Buildings from 12,500 SqFt For More Information, Please Call: doctoral university. chain in Michigan and the eighth to 35,000 SqFt ignated $2 million to go to the Jew- Under his leadership, a compre- largest in the country based on • Building Signage Available 248.324.2000 ish Federation of Metropolitan hensive university strategic plan- sales volume. • Easy Access to I-75/Big Beaver Corridor Detroit. ning process was implemented, While the company celebrates its • Conveniently Located in the Heart of Troy These days, the founder of and the largest fundraising cam- 50th anniversary this year, Van Els- • Ample and Convenient Parking Farmington Hills-based WW Group paign in the university’s history lander is helping St. John Health Sys- is the volunteer campaign chair www.friedmanrealestate.com was completed. tem with a gift estimated at several for Henry Ford West Bloomfield Hospi- “The fact that Chairman Reuss million dollars to support the ex- tal. Henry Ford nomination mate- pansion of the neurosciences center rials said Mark is “inspiring, em- at Providence Park Hospital in Novi. powering and charismatic. The contribution creates the Van These traits continue to inspire Elslander Neurosciences Center. community support from a broad The gift will help Providence ac- range of individuals for the quire additional leading-edge tech- greater good.” nology and patient care enhance- Henry Ford said Mark’s involve- ments. ment in the HFHS Foundation, the Van Elslander and his family Henry Ford West Bloomfield Hospital have made other large pledges to board of trustees as well as the St. John in recent years for capital West Bloomfield Hospital Campaign projects in Detroit and Grosse provides important support. Pointe Woods. Mark has a unit named for her at the new hospital: the Florine See next page 20091026-NEWS--0018,0019-NAT-CCI-CD_-- 10/22/2009 4:18 PM Page 2

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 19 Focus: Philanthropy

From previous page Family YMCA in Detroit. improving the quality of life of chil- can provide through its adolescent YMCA of Metropolitan Detroit Charter One also created the dren, adolescents and adults with clinic. Outstanding Youth Family agencies, Catholic orga- Champions in Action program, an mental illness in Southeast Michi- In September 2008, the founda- in Philanthropy Award nizations and churches within the initiative designed to reward non- gan since its inception in 1976. tion provided nearly $7 million in Archdiocese of Detroit, the St. Vincent profit organizations with public The Detroit-based foundation grants to mental health service Joey Nicholas has cerebral pal- de Paul Society, Genesis Foundation, recognition for their work. seeks to advance the scope, quality agencies in Southeast Michigan, sy and has used a wheelchair for America’s Walk for Diabetes and oth- The bank provides incentives to and delivery of mental health ser- the largest of them supporting inte- most of his life. er organizations also have bene- employees to get involved with vices. gration of mental and physical This doesn’t get in the way of fited from Van Elslander’s com- philanthropy, as well. Ethel “Peggy” Flinn and her health care at a number of primary his strong community service. mitment to philanthropy. And, brother James Flinn Jr. created the care sites around the region. Seven years ago, he went to the furniture company is celebrat- foundation to provide lasting sup- The focus on integrated care is YMCA Camp Phoenix, an educa- ing its anniversary, in part, by port for programs to help people af- meant to help teens before their tional summer program for kids providing $1 million to Michigan THE ETHEL AND JAMES flicted with mental illness. problems balloon into more serious at risk. nonprofits devoted to children, The foundation has created part- psychiatric conditions. He has attended the camp each health and human services. FLINN FOUNDATION nerships with a number of South- year ever since, and curently east Michigan organizations. serves as a preschool room volun- Outstanding Foundation Award The Detroit Medical Center’s Chil- teer. dren’s Hospital received a $375,000 Nicholas, now 20, inspires kids The Ethel and James Flinn Founda- grant from the foundation this year JOEY NICHOLAS with stories about how he has tion has been an advocate for to expand the services the hospital Volunteer, YMCA Camp Phoenix, overcome his own obstacles.

GEORGE BLAHA Television and radio play-by-play announcer Detroit Pistons Neil Shine Award for Media Commitment to Philanthropy

George Blaha has worked for 33 years as the television and radio play-by-play voice of the Detroit Pistons. During the Pistons’ off-season, Blaha stays active as a Pistons am- bassador, making appearances at charitable and community events. His annual “High Hopes” golf Our Sincere Thanks outing for the Vista Maria home for abused young women in the metropolitan area has raised nearly As we reﬂect on the Community Foundation’s 25 years of accomplishments, we celebrate $1 million for the charity. He also is an honorary chairman the passion, generosity and commitment of thousands of individuals and organizations who of the annual golf outing for the St. Louis Regional Center for the Develop- have worked with us throughout the years. mentally Disabled and serves as spokesman and fundraiser for the We thank the nonproﬁt organizations, which have made a profound impact on our region. Michigan Anti-Cruelty Society, benefit- ing neglected and abused animals We thank the many foundations, corporations and individuals whose support of the in the city of Detroit. He is the longest tenured play- Community Foundation for Southeast Michigan has helped create a lasting legacy that by-play announcer in Michigan will continue to make a difference for generations to come. after the retirement of Detroit Tigers broadcaster Ernie Harwell. Blaha was inducted into the Michigan Sports Hall of Fame in 2008.

CHARTER ONE BANK Outstanding Corporation Award

Charter One Bank has been a leading supporter of programs to move families from poverty to sustainable independence. The bank, with its Michigan operations based in Detroit, has sup- ported the Starfish Family Services’ Family Support Program, which helps families work toward their goals in areas such as housing, employment and child care. Charter One also is involved in Follow us on Twitter @cfsem and the Inkster-based nonprofit’s com- join our Fan Page on Facebook. munity initiatives, which offer home ownership opportunities to www.cfsem.org Connecting those who care with causes that matter. low-income families. The bank offers volunteer and financial support to other organizations around the region. For example, it provided a startup grant for the Early Childhood Development Center at the Boll 20091026-NEWS--0020-NAT-CCI-CD_-- 10/22/2009 3:42 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS October 26, 2009

CRAIN'S LIST: LARGEST FOUNDATIONS Ranked by 2008 assets

Assets Foundation ($000,000) Type of Approximate Rank Address; phone Top executive 2008 foundation Purpose of foundation grant range Grant limitations The Kresge Foundation Rip Rapson $2,839.3 P Supports communities by building the capacities of $10,000 - Most interested in grant proposals that address health, 1. 3215 W. Big Beaver Road; Troy 48084 president and CEO nonprofit organizations $25,000,000 environment, arts and culture, others. For other criteria, (248) 643-9630 visit www.kresge.org Community Foundation Mariam Noland 533.0 CO To improve the quality of life in Southeast Michigan $5,000 - $1,000,000 No grants to sectarian religious programs, to individuals, president by building permanent endowment funds and or to cover deficits or other previously incurred 2. for Southeast Michigan making grants to support charitable projects and obligations 333 W. Fort St., Suite 2010; Detroit 48226-3134 institutions (313) 961-6675 United Jewish Foundation Scott Kaufman 516.3 CO The foundation owns, manages and invests Jewish Donor-advised fund Monies are distributed per recommendation of donors 3. P.O. Box 2030; Bloomfield Hills 48303 CEO communal assets. It allocates funds for community must be greater that and approved by grant distribution committee (248) 642-4260 needs and ensures that assets are available to $250 promote the continuity of the Jewish people The Skillman Foundation Carol Goss 434.5 P To help develop good schools and good NA Grantees must be 501(c)(3) nonprofit organizations 4. 100 Talon Centre Drive, Suite 100; Detroit president and CEO neighborhoods for children. Most grants are directed 48207 at six Detroit neighborhoods (313) 393-1185 Max M. & Marjorie S. Douglas Bitonti 208.4 P Providing for the needs and safeguarding the Jewish $100,000 to No grants to individuals. Accept proposals by invitation Stewart people, strengthening youth and families, HIV/AIDS- $1,000,000 only 5. Fisher Foundation executive director health, and education arts and culture. 2 Towne Square; Southfield 48076 (248) 415-1444 McGregor Fund C. David Campbell 186.9 P To relieve the misfortune and promote the well- $5,000 - $500,000 Giving primarily in the metropolitan Detroit area. No 6. 333 W. Fort St., Suite 2090; Detroit 48226 president being of mankind loans (313) 963-3495 Richard & Jane Richard Manoogian 163.0 P Support for higher education, culture and the arts NA Contributes only to preselected organizations 7. Manoogian Foundation president and CEO 21001 Van Born Road; Taylor 48180 (313) 274-8799 Herrick Foundation Todd Herrick 150.0 P Improve the general welfare of our society through $5,000 to None 8. 660 Woodward Ave.; Detroit 48226 president and treasurer support of education, medical and scientific research $1,000,000 (313) 465-7733 and social welfare charitable organizations. General Motors Foundation Position vacant B 135.6 CS Enhancing the quality of life in the communities NA Contributions are only made to organizations with 9. 300 Renaissance Center; Detroit 48265-3000 where General Motors Corp. does business verifiable IRS 501(c)(3) status (313) 665-0824 Hudson-Webber Foundation David Egner 130.3 P To improve the vitality and quality of life of the $5,000 - $5,000,000 No grants to individuals or for emergency funds, deficit 10. 333 W. Fort St., Suite 1310; Detroit 48226 president and CEO metropolitan Detroit community. Giving primarily financing, endowment funds, scholarships or (313) 963-7777 within the city of Detroit, with a particular interest in fellowships. No loans the revitalization of the urban core

This list of largest foundations is an approximate compilation of the largest such organizations in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the foundations. P = private foundation, CS = company-sponsored foundation, CO = community foundation, NA = not available. B Rob Gillum retired Oct. 1. LIST RESEARCHED BY ANNE MARKS AND PATRICE BUSHART For an expanded list and for a list of the largest nonprofits and capital campaigns, go to www.crainsdetroit.com/lists DBpageAD.qxd 10/19/2009 4:26 PM Page 1

ALWAYS BEAUMONT

The Beaumont Foundation thanks the many donors who have generously provided leadership gifts of $1 million and above to advance research, education and patient care at Beaumont Hospitals.

Marcia & Eugene Applebaum Surgical Learning Center William & Marie Carls Children’s Medical Center Shery L. & David B. Cotton, M.D. Family Birth Center Harry “Kirk” & Barbara Denler Leukemia Research Fund Thomas & Barbara Denomme Neuroscience Patient Care Center Erb Family Molecular and Genetics Laboratory Ghesquiere Family Center for Children’s Surgery David A. Hagelstein Oncology Services Fund Hough Family Center for Eating Disorders John A. Ingold, M.D., Distinguished Fellowship in Breast Surgery Edward Mardigian Family Surgery Center Ministrelli Center for Advanced Cardiovascular Imaging Florine & J. Peter Ministrelli Endowed Chair in Cardiovascular Research Florine & J. Peter Ministrelli Women’s Heart Center Ministrelli Cardiology Research Magnetic Resonance Imaging Fund J. Peter & Florine Ministrelli Urology Institute Ministrelli Program for Urology Research and Education (MPURE) J. Peter & Florine Ministrelli Distinguished Chair in Urology Dominic & Frances Moceri Heart Rhythm Research & Education Fund Harold & Marian Poling Neuroscience Center Polk Family Endowed Chair in Developmental-Behavioral Pediatrics Roncelli Family Orthopedic Center Rose Cancer Treatment Center Rose Family Adaptive Oncology Imaging Suite Debra Saber-Salisbury Memorial Garden Sandor H. Shoichet, M.D. and William M. Davidson Endowment for Excellence in Internal Medicine Education Elizabeth A. & G. John Stevens Center for Minimally Invasive Surgery Suzanne & Herbert Tyner Pediatric Emergency Center Vattikuti Digital Breast Diagnostic Center Barbara & Sam Williams Acute Cerebrovascular Center Marilyn & Walter Wolpin Comprehensive Breast Care Center

The Campaign for

WWWBEAUMONTHOSPITALSCOMs248-551-5330 Always learning. Always discovering. Always caring. Page22.qxp 10/22/2009 5:39 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS October 26, 2009 Detroit Election Tom Barrow on ... Challenger stresses public safety, small-business help, opposes regionalizing city’s assets Why he’s running for mayor got told ‘no’ the first time, they controlled — and financed by — re- went back and created a law, with gional or nonprofit entities. “If you don’t live in the city of the help of our naïve legislators in “The privatizing of power and Detroit, you don’t know what’s Detroit who don’t know our histo- light, I happen to have a disagree- happening on the streets, you’re in ry, and proceeded to encroach upon ment with that, because I know a bubble. … When you’re out in our constitutional rights as a home- they are deliberately not funding it. the streets, you ride the bus, walk- rule city, they provided for a veto of They are giving the ostensible ap- ing up and down the streets, peo- a negative vote should council vote pearance that it’s Detroit power and ple’s porches, barbershops and it down, because we had a mayor light letting your streetlights go night clubs, when your phone who was one of them, in my view, out, and that it’s Detroit power and bank is run- one of those who believe we should light not taking care of street lamps ning. … We get rid of Cobo Hall and give it to and all those sorts of things when WEB EXTRA did a statis- somebody else. it’s (Detroit) Edison (Co.). Edison’s A Barrow tical ran- “I believe that encroachment vi- putting in tie lines. It’s a huge book admin- dom sample olated our 10th Amendment of business, I understand that. It’s a istration … and it all rights, and it is a precursor to tak- huge book of business. would have shows what ing the water system. And so I re- “The (Detroit Institute of Arts), certain requirements for I’m feeling ject it. I think that if we don’t chal- that happened so long ago … department heads. in the lenge it, you’re going to take the frankly, I may have had a problem See the video, streets. water system, because that’s what with the DIA if I knew what I www.crainsdetroit “Cutting folks really want. And as I see know today at the time. .com/multimedia buses, (the them transfer pieces, substantial “I can’t speak of the zoo because I Bing admin- pieces of this water system, I know don’t know the facts, but before I istration) said, we’ve got to get that it is just a function of time. would transfer resources away within our means, and everyone “I would challenge it because I from the city and regionalize De- agrees with that, but Detroiters think it’s a violation of our 10th troit as some would have us do, I are incensed because they can’t Amendment rights. … If we don’t would have to be absolutely con- get to work, they can’t get to the do that, I think they’re going to take vinced of something before I would store. If you’re just seeing what the water system using the same just allow that to be taken away.” The (Detroit) News and the (Detroit NATHAN SKID/CRAIN’S DETROIT BUSINESS technology and particularly if they Free Press) are telling you or what have the same mayor. It won’t hap- but I can’t tell any more than you Regional cooperation you saw in the primary, I’m about Public safety pen under my administration.” can tell, because they’re not show- “(My rejection of regionaliza- to change that. You all may have “Public safety is the number-one ing records. tion of city assets) doesn’t mean I bought it, but I don’t because I issue confronting Detroit … but it’s “I’m all for making us live within Economic development want to play the city against the know what I’m seeing, and I’m complicated. You can’t just do this the confines of what we have avail- suburbs. I want to work with our about to beat the guy. “I happen to believe that De- in a vacuum, folks. … If a person able, but I’m all for us having full suburban brothers and sisters, but “I don’t think it’s quixotic. I troit’s going to grow, and it’s going can’t get to work, if the bus is gone, information and the knowledge to I think we’ve got to start dealing think the people are about to take to do it with small business. There what do you think they’re going to do it. If I’ve got to cut and freeze, my from a position of respect.” back their city.” are only so many big guys to go do? How are they going to make position is to freeze everything, ends meet? … They’ll start commit- around and they’re all taken. … stop it all, don’t move a step. Then We need to get young entrepre- Service delivery The budget ting crimes. If you don’t provide we could manage by cash flow.” people with the opportunity to get neurs … and provide them with “Here’s my plan: to empower “If you talk about something to and from work, to feed their fam- capital and the means to start people. I happen to believe there long enough, you can talk it into ilies, pay their car notes and funda- Cobo Center businesses easily. are houses and neighborhoods “We need to provide them with that are blighted, whose proper- existence. If you get a credible mental things, do you think they’re Barrow has said he opposed the capital, and that means I’ve got to ties are owned by developers and source to repeat it, it takes on its going to go without? Then you’ll sit deal crafted in the Legislature that go to my banks. I’m going to take a folks not within the community, own life. on the outside and look in and say, created a regional authority to run portion of my salary and put it in banks that have foreclosed and are “The last time I saw an audit re- ‘Oh, crime is so bad.’ Cobo Center, and says he’ll chal- the pot, I’m going to go to church- letting them atrophy. port, $80 million or $90 million was “I’m going to add more police of- lenge the legality of the authority if es … I’m saying, ‘Sell bonds, put in “I’m going to empower Detroi- our fund balance deficit … I find it ficers. How? ... I’m going to take a he’s elected. it in the pot.’ … I’m going to make ters. There are neighborhood incredulous that we can go from $80 piece of the money we’re wasting “We didn’t have a problem with some capital available. block clubs all over the city. … I’m million or $90 million to almost $350 (Editor’s note: Barrow says waste is Cobo Hall when Louis Miriani was “I don’t care who you are, if going to deputize them. If there million or $400 million in the gener- evidenced in departmental cost over- mayor, we didn’t have a problem you’re a small-business owner and are blighted houses in a neighbor- al fund. Here’s what my problem is: runs). We know we’ve overspent. … when Jerome Cavanagh was may- come to me with an accountant, a hood that’s run down, beat up, be- No one shows us anything. We all I would lease 150 one-man, two-man or, we didn’t have a problem when lawyer, a business plan, a formal low code (if an inspector is called talk it into existence. cars, little cars you see in Rochester Roman Gribbs was mayor or even structure and a five-year cash pro- and) if the inspector is not out “When I hear a guy who says that pull up behind you and the with Coleman Young … or Dennis jection as to how you’re going to there in 10 days, I’m going to depu- we’re going to run out of cash Oct. next thing you know, you’ve got a Archer. make this business work, and you tize you to write the ticket. 1 if we don’t take these draconian ticket. … With my one-man cars, “We got our problem when have some capital of your own, it’s “If there’s a house with over- cuts, then he comes back two you’ll get a cop in three minutes Kwame Kilpatrick came along and going to get you some access to the grown weeds, I’m going to hire a weeks later and says we’re not go- just like they do in Franklin.” the people who he stuck into place working capital. guy right there in the neighbor- ing to run out of money now, we’re are taking bribes and kickbacks “I want that fund to be as large as hood to cut the grass. … Every- good till February or March, but and all this money for doing sinis- Cuts it can be. I want it into the millions. body knows who cuts the grass, we’re $50 million short and your ter and nefarious things. I want it into the tens of millions. and if the grass isn’t cut people audit reports are late and they’re “I don’t think there’s anything I “That’s what caused people to Our police and fire pension funds, will say, ‘David, what are you do- holding back that kind of money, wouldn’t cut. There are some want to take Cobo Hall from us, they’re loaning money out all day ing … because I know you get paid then they say we’re going to cut things I think are fundamental to a with the ostensible appearance of, long to what in my view are specu- downtown.’ 1,300 people then they come back a unit of government: public safety is ‘We want to expand for the auto lative businesses with very little “I’m going to tell people the dif- week later and say we only need to fundamental, and I think it needs to show,’ knowing full well the auto chance of success. We could take a ference between ‘snitching’ and cut 381, that tells me, as a finance be funded at a higher level. industry was contracting. No fraction of that money and create ‘telling.’ ” person, that they don’t know “My position is quite clear that one’s trying to get in there. 150 or 200 small businesses that where they are. before I require people to change “Then they had to shift that ar- would hire Detroiters.” “Unless you can show me some- their lives I’ve got to have facts. gument when it came to be so Resizing Detroit thing … and why aren’t we show- You can’t manage an operation overtly illogical. They said, ‘Well, “When people talk about right- ing it to the unions, why aren’t we merely by cash flow. If I’m in a now we need to modernize it.’ I Privatizing or regionalizing sizing or downsizing, they’re talk- showing it to the people of Detroit? panic position where I’ve got to think everybody will agree there ing about running within your If we keep talking it and nobody’s manage by cash flow, I’ve got to are things we need to do that we of city services or assets means. The city’s never going to producing a document … I suggest show that to somebody. … I’m all didn’t do back when Cobo was A plan to decommission the city’s shrink. It’s always going to be to you that no business would prepared to make cuts. When I built, but Cobo Hall isn’t dilapidat- Mistersky Power Plant is currently Eight Mile, Telegraph and Alter. function on this basis. If you’ve talk to these union people, I make ed and rundown and decrepit. under way; city assets, such as Does that mean you have to de- got an interim financial state- it clear to them that, man, we may “How they did Cobo Hall was dis- Cobo Center, the Detroit Institute of stroy neighborhoods because ment, produce it.” have to deal with something here, turbing to me, because when they Arts and the Detroit Zoo, are now there’s five houses on this block?” 20091026-NEWS--0022,0023-NAT-CCI-CD_-- 10/23/2009 11:58 AM Page 2

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 23 Detroit Election Dave Bing on ... Incumbent focuses on restructuring government, cutting the deficit, fighting crime Restructuring them, quite frankly. They’re capa- The turnaround team’s report ble people that were in the Kil- Bing has launched a massive city patrick administration. Just be- “They said they thought there government restructuring effort cause they were there under his were $500 million to $600 million of aimed at reducing the number of leadership should not color them improvements in the recommen- city departments and consolidating as somebody that’s not competent, dations they put forward. We don’t services. Some measures, he says, not capable. I want the best people agree with that; number one, we’d will be implemented in the 2010-11 I can get, and I’m surrounding my- have to be perfect in execution, fiscal year. self with the best people I can get.” and that’s not a reality. “We’re going through the budget “I believe there’s a percentage of process as about 50 percent of the number we speak for On previous restructuring efforts they put out that’s achievable, but WEB EXTRA the 2010-11 Previous mayors have had re- it will be over a three- or four-year Bing wants fiscal year, structuring-oriented committees, time period, because we can’t do to attract and there but few, if any, recommendations all of that at once.” young are some have been implemented. Efforts in- talent to things we clude a committee, launched by the work in his Privatizing or regionalizing administration. See absolutely late Coleman Young, of which Bing the video, have to do. was a member. of city services or assets “It’s déjà vu all over again. I am www.crainsdetroit Zero-based “Needless to say, regionalism is .com/multimedia not going to allow the time that was budgeting is important. Transportation — invested by those 50 to 60 people a process there’s no doubt in my mind that who put in thousands of hours, I’m we’ve implemented and we will fol- we need to do that. I’m not such a not going to allow the intellectual low through on that. The toughest big proponent of privatizing and abilities they brought to the table to thing for us right now is to get a outsourcing, but I want to utilize go unwarranted. I will be utilizing full understanding of where our the skills, and pricing. It’s not just and implementing a lot of recom- revenue will be. It’s very difficult about can we get the lowest price, mendations they put forward. to get my arms around that. What it’s about value. The total value “A lot of their recommendations we’re going through right now stream is what’s important. Our NATHAN SKID/CRAIN’S DETROIT BUSINESS are joint recommendations be- with the labor negotiations, I don’t people need to understand inter- cause they worked very closely have a good handle on what our la- That’s why, once again, the sooner nally that they’ve got to be compet- Making cuts before an election with my internal leadership team. bor costs are going to be. So it will I can get my arms around my labor itive. They’re not guaranteed a job, We picked out what we thought we be some time before we can have a “I’m doing what I think has to costs, as soon as I can get my arms they’re not guaranteed work. could achieve in year one. It’s a liv- draft of the budget for 2010-11. … be done. If you’re so concerned around that and know what my They’ve got to be competitive, and ing document, something that as “I’m not prepared to say right about getting re-elected that you costs are, I’ll know what I need to if they bring the best value to the we move forward and as we imple- now which departments we are go- put off the things you know are do on a going-forward basis. The organization, then I would keep it ment recommendations, we will ing to consolidate and which we’ll right that need to be done, I think reality is that revenue is not going inside. But they need to under- add more on an annual basis.” eliminate.” you do the citizens a disservice. … to grow, and you can balance the stand there are people on the out- I’m doing what I think is right, budget in the short term through side that want the bus, and I have what needs to be done, and I’m reductions, but that’s short term. Why he wants to be mayor to compete.” Union negotiations marching down that road come If the city is going to survive and “I know that there’s a void in hell or high water. … thrive, we’ve got to change the en- Bing is currently negotiating leadership in this city, at the most “We’ve got too many employees; vironment, change some of the Detroit’s population and what the with the city’s largest labor unions crucial point in its history. We’re we can’t afford them. I came into processes we do in the city so that for wage and benefit concessions. going to either survive or fail next U.S. Census results will show Union leaders have said that Bing office, and the budget for this year we’re in a position for businesses based on leadership in this city. “There’s going to be a reduction hasn’t made financial information was a little over 13,000 employees. to grow and city to grow. That’s “And I think I can make a differ- in population, but we’re doing a lot that would justify the concessions There’s no way we can afford that not going to happen right away.” cost. So I looked at a 10 percent pay ence. What I achieved in my two of things right now in terms of get- available to them. cut across the board as well as careers, one as an athlete and one ting plans together to make sure “That’s not true at all. They have about a 10 percent reduction in the Municipal bankruptcy as businessperson. I feel really everyone is counted, because his- all the information, and they’ve had workforce. Today we’re close to good about that, but it’s hard for torically that hasn’t been the case. all the information. It’s a stalling “We’re nowhere close to that. … 500 layoffs. None of this makes me me to sit back on that success and (The city needs an accurate count) tactic, and it’s unnecessary. Every- We’re not talking about payless feel good, but it’s got to be done. see everybody around me bleed- politically and financially because body talks about fighting each oth- paydays at all, not talking about “Is the 10 percent reduction in ing, hurting and in pain. … of what it will do to the support er, that’s a fight none of us wins. bankruptcy, not talking about a fi- the workforce an absolute num- nancial manager coming in. I’m in “Maybe it’s my competitive ath- coming out of Washington, D.C. What we’ve got to do is have the ber? Maybe, maybe not. I don’t close contact with the governor on letic juices coming back to the I’m hoping for 800,000 to 850,000. mindset that we want to mitigate know, but the longer we continue a biweekly basis, my CFO is in forefront, but I think I can do it. “... We have some people in the situation we’re in as best we can down the road of trying to elongate close contact with the state Depart- But I can’t do it on my own.” elected positions talking about … the longer we string this along, the process with negotiations, it ment of Treasury. … There are no growing the city, and that’s an er- the worse of a financial position it could have a negative impact on surprises.” Crime roneous assumption. I think we puts the city in. The sooner we can how many employees get laid off.” have to fix our problems before we come to the table and come to agree- “You’ll see reports come out can retain what we have here and ments, the better it’s going to be for Small business pretty soon that there’s a reduc- go out and get people to come the city from a financial standpoint. This year’s operating shortfall The focus in the next four years, tion in crime. It’s short term, but here.” “... We’ve got 17 unions in the “Just with the Sept. 1 executive will be on small-business retention that’s good news that we need. city of Detroit with 50 bargaining order (mandating a 10 percent wage and small-business growth. “We are (implementing data-dri- Resizing Detroit units, with presidents who all get cut) for our salaried personnel, we There’s no doubt in my mind that’s ven policing and a switch to the paid by the city to negotiate against would have created an $11 million where the growth will be.” precinct model) as we speak. (Po- “There are conversations going the city. I guess I’m missing some- savings. Because we didn’t do it till lice Chief) Warren (Evans) be- on. … Once I’m in office for four thing. I don’t understand that, and Sept. 1, it’s about an $8 million posi- lieves in it, and they are important years, I think I can get away from it’s not something I’m going to con- tive impact. When we look at the Appointees changes. We have just graduated what I’m focusing on right now tinue to live with. … The big guys outstanding receivables, I think Bing, who campaigned as a 32 new police officers, and we just and look at Detroit in a larger per- haven’t come to the table yet, and I there’s some erroneous assump- change agent, has taken fire for the got large a grant from (the federal spective, a longer term. Today it’s guess they’re elongating the tions made. We’ve got $200 million number of holdover employees from Community Oriented Policing Ser- all about focusing on how to save process to see what happens in No- of outstanding receivables that date previous administrations, particu- vices) program that will allow us the city. vember. Maybe they’d have some- back 10 or 11 years, tell me why we larly CFO Norm White, who served to hire another 50 police officers. “Everything I’m hearing right body else who would be, in their haven’t written that off … I think under disgraced former Mayor “I didn’t make promises, but on now … there are about 70,000 mind, more reasonable toward we can get $3 million to $5 million. Kwame Kilpatrick, as did Chief Ad- the campaign trail, knowing what structures that are empty, and them. And if that were the case, we When asked if this fiscal year will ministrative Officer Charlie Beck- a high priority crime is, I said my there’s no way we’re going to deal failed, because if you don’t make add to the existing general fund ham, who also served under the late last cuts would be public safety, with that kind of blight short in the hard decisions now, I don’t deficit: Coleman Young. and as of now, I have not cut any the term. We don’t have money to think there’s a future.” “I’m fighting that right now. “I don’t think I need to defend police, any fire, any EMS techs.” tear down all of that short-term.” 20091026-NEWS--0024-NAT-CCI-CD_-- 10/23/2009 12:04 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS October 26, 2009 Detroit Election

and there’s a bill attached to that. They want ROGER PAPPAS to inspect the plumbing, there’s a bill at- Biz speaks up President tached to that,” he said. “They recently start- We’re all struggling, ... Vulcanmasters Welding Co. Inc. ed … commercial solid “ waste inspection pro- and $1,000 could be the rain’s posed a simple question Roger Pappas’ Vulcanmasters Welding Co. grams. There’s a fairly to business owners in Detroit: Inc. has been in Southwest Detroit for 20 hefty bill attached to that, difference between profit C What do you need from the years. to come down and say, and loss. city? While this question elicited a va- “A little bit more of a police presence ‘Yeah, you have a garbage ” riety of responses, answers shared would be nice,” he said. “We rarely see a po- can,’ there’s $250 attached lice car. ... It’s something that’s an ongoing to your tax bill.” troit? “The best part of doing business here some common themes. Public safety, problem here that needs to be addressed. Pappas said he’d like to is the central location to my customer base efficient service delivery, accountabil- Business is going to flounder until it is ad- see a regular, standard in- and proximity to expressways,” Pappas ity. But when we asked business own- dressed. People should feel comfortable lock- spection schedule — with said. “As my customer base started expand- Pappas ing, my ability to get on major freeways ers what they loved about doing busi- ing their business up for the weekend.” the stiffest bills sent to those who are in violation. within a few minutes is a major advantage, ness in Detroit, the lists were equally Pappas said he’s always enjoyed a good re- lationship with the city’s elected officials. “We’re all struggling here in Southwest as is the proximity to shipping, trucking long. But in recent months, inspection bills have Detroit, and $1,000 could be the difference be- and rail that takes place in Southwest De- Our interviews begin here and con- started to add up. tween profit and loss,” he said. troit.” tinue through Page 26. “They want to look at the air compressor, What do you love about doing business in De- — Nancy Kaffer

BEN SMITH NationalCity.com/CashFlow Principal Summit Commercial L.L.C.

If the new city government hopes to warm up Detroit’s business climate, some professional- ism would go far, said Ben Smith, a native Detroiter who co-founded a commercial real estate firm in Detroit this Make sure year. Smith said scandals in city government Smith have left a poor impression on potential investors, overshadowing your cash flow the benefits of doing business in Detroit. “Having arguments and fights with each other on television, I just don’t think that shows a good public image,” he said. is headed in Smith lives in the suburbs but has done business in Detroit for more than 10 years, managing real estate developments in the city for Southfield-based NAI Farbman and the Detroit Economic Growth Corp. He said he’s content with the the right direction. safety, amenities and proximity to downtown of the New Center area, where Summit Commercial’s offices are located, and tries to convince businesses that Detroit has a lot to offer. “Some clients — not all — have some stereotypes associated with the city, and they then tie those same stereotypes to folks that live in the city or run a business out of the city,” he said. In order to run a No matter what goals you’ve set for your business, meeting them would be impossible successful business, “it’s certainly without effective cash flow. At National City, we can help improve yours, by taking a close something you have to overcome.” What do you love about doing busi- look at how your business operates, and developing customized cash flow solutions. ness in Detroit? “There’s this innate With help from our business banking experts, we can help you collect receivables faster, loyalty to the city. You want to see it be successful. … I hope my work make payments more efficiently, and ensure access to credit when needed. in real estate will help change the landscape of the city and leave a To learn more about how we can help you improve your cash flow, stop by any National City positive impact.” — Gabe Nelson branch, visit NationalCity.com/CashFlow, or call 1-866-874-3675. “ Some clients — not all — have some stereotypes associated with National City Bank, Member FDIC ©2009 The PNC Financial Services Group, Inc. Credit products are subject to an approved credit application. the city.” 20091026-NEWS--0025-NAT-CCI-CD_-- 10/23/2009 12:18 PM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 25 Detroit Election IRENE SCHUMER concerned about other cities, but to learn the new standards,” she SHARON MCWHORTER other states.” said. Co-owner President McWhorter said the city’s bu- The city taxes on A true one-stop shop for busi- General Linen and Uniform Service American Resource reaucracy needs “ ness needs would improve things, Training Systems Inc. to be stream- personal property … she said. Irene Schumer, 86, joined Gener- lined. McWhorter also is concerned al Linen and Uniform Service in the As a business owner and the “We need to I don’t see why we about city taxes. 1970s. Husband Bill, 87 and a owner of an office building in De- be able to get “I’m a city resident and also do World War II troit, Sharon McWhorter has two things like should be penalized business in Detroit, and the city veteran, has different perspectives on business building perfor trying to do taxes on personal property … I worked in the ownership in Detroit. mits, things of don’t see why we should be penal- 90-year-old fami- “For my training company, one that nature, a business in the ized for trying to do business in ly-owned busi- big issue is having a consistent little faster,” she the city or even in the state,” she ness since 1948. way of learning about (requests for McWhorter said. “To have a city. said. The proposals), doing business with system where ” What do you love about doing busi- Schumers no the city,” she said. everyone knows what the other is ness in Detroit? “I love my cus- longer live in “I would love for local business- doing.” said, new strategies and methods tomers and also the pool that I can Detroit, and es to have the opportunity to bid And those mechanisms should come into play, and business own- pull from to get help when I need Irene Schumer on projects without them calling be standardized. With each may- ers are left struggling to catch up. it,” she said. Schumer was reluctant to people from other states — I’m not oral administration, McWhorter “There’s not enough time there — Nancy Kaffer be too vocal about municipal politics. But, she noted, owning a Detroit business that employs 140 “gives us some skin in the game.” “What I’d like to see is that we start to get Detroit on a sound basis,” she said. “We’ve been buffet- ed by all the scandal and that the city has not been run well. We’d like it to run like a good family business runs — you don’t spend more than you take in. And we hope there will be a change in the council.” Schumer said the city has to focus on reality. “We can’t long for what was, we have to make certain we can make do with what can be,” she said. “We feel like there’s a good future for Detroit. If we don’t have 2 million, let’s make it the best city of 900,000 we can be.” Part of that, she said, is encouraging small-business growth and development. “We would really like city government to understand maybe they can’t depend too much on the auto companies, but there are a lot of entrepreneurial people in this town and they ought to be friendly to them,” she said. That includes streamlining the city’s bureaucracy and offering help to business owners that want to open shop. “The ordinary things people have done that work — tax breaks for people that you hire, tax breaks

for people who you can train,” she SM said. FACT: Over 100,000 Healthy Blue Living members have lowered What do you love about doing business in Detroit? “This city has been their insurance costs by improving their health. good to us,” she said. “I can’t say we’re boosters because that does- n’t express it, we have tremendous affection and tremendous thank- We’re helping create healthier workplaces fulness to this place. … I think by rewarding employees who commit to healthy we’re going to find those things that could be, may be, hard, and it living with lower co-pays and deductibles. Our can seem easier to rely on things Healthy Blue LivingSM product is one of the many that are proven. But when we have to sink or swim, we’ll swim.” innovative ways we are improving the health of — Nancy Kaffer everyone in Michigan. And it’s one more example of how the Blues will be ready for whatever the future of health care brings. “ We feel like there’s a good future for Detroit. If we don’t have 2 million, let’s make it the best city of 900,000 we can be.” MiBCN.com/HealthyBlueLiving 20091026-NEWS--0026-NAT-CCI-CD_-- 10/23/2009 12:19 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS October 26, 2009 Detroit Election

a commercial development that at- fore: Why not let businesses open up GEORGE HILL tracts businesses that go to the JOHN KING (in an unused site) and not pay taxes CEO and Chairman There’s no suburbs, whether small business, Owner, John K. King Books for three or five years? They’re not Diversified Chemical Technologies Inc. “ small manufacturers like our- getting taxes for question that selves, we’re the guys who create John K. King’s mammoth book- vacant property George Hill’s Diversified Chemical the jobs.” store is in an old factory on West as it is.” Technologies Inc. has been in busi- incentives for Over the past 38 years, Hill said, Lafayette. He’s operated a busi- And the city ness for 38 years, during which he and his partner, company Presi- ness in Detroit must fix its im- time he’s business not only to dent Arnold Joseff, have seen all for 40 years and age, Walker said. stopped looking come into the city but the other businesses exit the says not much “We have to to the city for so- sprawling north end industrial has changed. really change lutions. stay in the city is a park where Diversified Chemical “They have in- the image, that’s “It’s difficult is located. stitutionalized the biggest What do you love about doing busi- indifference,” he thing,” he said. because you big issue. Walker come to not ex- ” ness in Detroit? “What keeps me said. “People who pect much,” he here is the people; this is such a Accountabili- come to Detroit for first time say, said. “Speaking to cut red tape would be a “real can-do city,” Hill said. “We have ty would help, ‘It’s not like I thought it was.’ People as someone who plus,” Hill said. been able to marshal a level of en- King said. are often impressed with the city of King loves the city, “There’s no question that incen- thusiasm and support in terms of “To have some Detroit. If the City Council and the Hill very often the tives for business not only to come the kind of people we’ve been able place to call when there’s some- mayor could actually help change response times on the things you’d into the city but stay in the city is a to attract — very high-tech people, thing wrong, or when they make a the image …” like to get done are so bureaucrati- big issue,” he said. “It’s difficult Ph.Ds and others. They like the mistake,” said King, a Detroit resi- Walker acknowledges that the cally snarled and time-consuming for a city that’s under siege finan- city, and we’re very comfortable dent. “When you need to get some- city needs to tackle some problems. that you just kind of find another cially like this one is, but there here. thing done, you’re fighting them “Crime is the big thing that kind way of getting things done.” needs to be some thought in the “All things considered, we like constantly. Instead of selling books, of deters some businesses,” he Streamlining city government city on commercial development. I the energy.” I’m trying to figure something out said. “I get good police response, and having an active ombudsman sincerely believe we’ve got to have — Nancy Kaffer on the phone for hours.” but I hear some other people say In the meantime, he said, there’s that is an issue.” frustration. What do you love about doing busi- “They say send a letter, you send ness in Detroit? “There’s a lot of op- a letter. Six months later, you call, portunity here,” he said. and they say ‘What letter?’ ” he — Nancy Kaffer said. “Or when you call … it says the voice mail box is full. There’s nobody that seems to take any re- sponsibility to help anybody. MATT NAIMI “The last time we had a problem, someone threatened to kill me Director, Recycle Here in the store,” he said. “I called the police, and they never came. They In Midtown, where Matt Naimi said they couldn’t find the build- lives and owns a neighborhood- ing” — easily visible from major based recycling company, police roads, with the name of his store have cracked blazoned across the top. down on drug “I filed a police complaint and it dealers. One came back that it’s not their fault main reason: A they couldn’t find the building,” he neighborhood said. “It’s like the ‘Twilight Zone,’ group is feeding and it’s worse than anything Rod them informa- Serling could come up with.” tion on suspect- What do you love about doing busi- ed dealers. ness in Detroit? “It’s a nice place But it took too from the standpoint of customers,” long for police to Naimi he said. “We have customers from heed the tips, homeless people who come in for Naimi said, and the structure of free books to William Safire. He city government is partly to blame. was a good customer.” At-large City Council members — Nancy Kaffer aren’t accountable for the problems affecting individual businesses and residents, he said. That’s why he supports a proposal to elect When you need to the council by districts, which ap- “ pears on the Nov. 3 ballot. get something done, “Make sure the lights work in you’re fighting (the your district,” he said, referring to There are no unimportant clients at UHY LLP. the responsibilities of City Council city) constantly. members. “If there’s an issue You’re thinking about hiring an accounting firm. And you’re nervous. that’s not being addressed, you’re ” not going to get elected.” At the first meeting, the top dogs will all be there. But after that, you’ll probably Naimi, who has lived and done be dealing with a very – junior – associate. business in the city since 1997, ran CHARLES WALKER for a spot on the council ballot dur- At UHY LLP, our philosophy is entirely different. Owner/licensed operator, Save-A-Lot ing this summer’s primary. When the votes were counted, he came in Our partners stay involved. For us, it’s not about how big your company is, it’s Charles Walker has owned the 52nd, with about 2,600 votes. about how big your ideas are. Save-A-Lot at Warren and Conner Naimi, who operates drop-off re- since 2003, when he rehabilitated a cycling sites around Detroit In fact, many of our biggest clients today, started out with nothing. And we’ve blighted former Wrigley’s store. through a contract with the city, enjoyed helping them grow. It’s a thrill for all of us. To thrive, he said, the city must said the new mayor and council attract a lot more business. should make it easier for small busi- So if you’re looking for proven financial wisdom and experience, why not give “They need to get some addition- nesses to navigate the bureaucracy. UHY LLP a call? You’ll be surprised how fast we call you back. Every time. al businesses in the city of Detroit “The red tape that you some- so we can feed off each other,” he times encounter in order to get said. “No doubt in the grocery things done makes Detroit very You have our undivided attention. business we’re underserved. Peo- cumbersome,” Naimi said. ple are shopping, but they’re shop- What do you love about doing busi- ping outside the city of Detroit.” ness in Detroit? “I’m a firm believer Detroit’s leaders should think in cities,” Naimi said. Between the creatively, Walker said, and use va- vibrant culture and commercial cant buildings and land as a tool. districts that stem from popula- “From tax incentives to get busi- tion density, he said, “I believe it’s ness to open up, to (having) a lot of the greatest invention man has Anthony Frabotta, Partner-in-Charge, MI-UHY LLP 586.254.1040 vacant buildings,” he said. “One created.” thing they were talking about be- — Gabe Nelson 20091026-NEWS--0027-NAT-CCI-CD_-- 10/23/2009 10:44 AM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 27

Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

PEOPLE EMPLOYMENT CALENDAR ARCHITECTURE Henry Ford Health System Work” job fair, 9 a.m.-1:30 p.m. Seminar on job hunting Barbara Owens to IN THE SPOTLIGHT Nov. 4 at Burton Manor, 27777 spotlights career opportunities Schoolcraft Road, Livonia. Global Consulting is holding a vice president of The Holocaust Memorial Center in business develop- seminar Wednesday on job hunt- Farmington Hills has named Henry Ford Health System is hold- Attendees may register to attend ment, Hamilton ing in today’s economy. Stephen ing a series of open houses Nov. 3-6 a seminar at 8:15 a.m. with career Anderson Associ- coach Therese Boldt. The event runs 4:30-7:30 p.m. at ates Inc., Detroit, Goldman to showcase current career oppor- Global Recruiters offices, 32985 from chief devel- director. tunities. Locations, times and For information and to register: opment officer, Goldman, 63, dates for the free events are as fol- www.employmentguide.com, click Hamilton Court, Suite 205, Farm- Museum of succeeds lows: on “Job Fairs,” click on the event ington Hills. $199. For information African American interim director Nov. 3 at Henry Ford Hospital, then click on “Pre-register.” and to register, call (248) 489-1900. History Inc., De- Guy Stern, who 2799 W. Grand Blvd., Detroit, sec- troit. had served in Owens that role since ond floor of the Education and Re- ENGINEERING December search Building, 11 a.m.-6 p.m. Scott Adamowski after the death Nov. 4 at Henry Ford Wyandotte to vice president Goldman of the center’s Hospital, 2333 Biddle, Wyandotte, and shareholder, founder, multipurpose Room A, noon-6 p.m. Conestoga-Rovers Charles Rosenzveig, and is Nov. 5 at Henry Ford West & Associates Inc., returning to his former role as Bloomfield Hospital, 6777 W. Maple Plymouth, from director of the center’s Road, West Bloomfield Township, associate. International Institute of the in the main atrium, noon-6 p.m. Righteous. Nov. 6 at Henry Ford Cottage FINANCE Goldman previously served as Hospital, 159 Kercheval Ave., Derek Robertson museum director and curator for to business devel- the Florida Holocaust Museum in Grosse Pointe Farms, in the main opment manager, St. Petersburg. lobby, 9 a.m.-3 p.m. Adamowski Falcon Group Inc., He also served as executive director Opportunities exist for: experi- Farmington Hills, from inventory of the Sherwin Miller Museum of enced nurses in various depart- manager, C&G Marketing Associates Jewish Art ments, lab technologists, pharma- L.L.C., Palm Beach Gardens, Fla. in Tulsa, Okla., and executive director of Temple Beth-El cists, physical and occupational Phillip Love Jr., in St. Petersburg, Fla. therapists, physician assistants and CEO of South Car- olina Farm Bu- Goldman earned a bachelor of arts more. reau Mutual In- degree in theater arts from To register, go to www.henry surance Co., West Brandeis University in Waltham, fordcareers.com and click the “Reg- Columbia, S.C., Mass., and a master’s in fine arts ister” button. More information is appointed to from Carnegie Mellon University in available at the same address. board of direc- Pittsburgh. tors, Amerisure Mutual Insurance Russ Russell to ‘Back to Work’ job fair set Co., Farmington chief develop- Hills. ment officer, For- Fox 2 News and Employment- Love Ronald Reed to gotten Harvest Guide.com are holding a free president and CEO, Michigan Commu- Inc., Oak Park, “Putting Americans Back to nity Bancorp Ltd., Sterling Heights, from vice presi- from executive vice president and di- dent of develop- rector, Lakeside Community Bank, ment, marketing Sterling Heights. and public rela- Marc Layne to business development tions, Goodwill executive of marketing and sales Industries of group, Grant Thornton L.L.P., South- Greater Detroit, field, from managing director, The Russell Detroit. Siegfried Group L.L.P., Detroit. SERVICES LAW Kimberly Ziomek James Rayis to partner, Asker Perl- to director of mar- muter P.L.C., Farmington Hills, from keting intelligence shareholder, Dickinson Wright service, RDA P.L.L.C., Bloomfield Hills. Group, Bloomfield Hills, from career MANUFACTURING adviser, Lee Hecht George Kargleder to vice president, Harrison L.L.C., Filter Engineering Corp., Sterling Southfield. Heights, from manager of filtration Mario Romero to sales and technical support, R.H. vice president of Creager Inc., Kenner, La. Ziomek operations, The Environmental MARKETING Quality Co., Wayne, from president and CEO, WOW Energies Inc., Sugar Land, John Reed to senior vice president of Texas. marketing consulting and business and product development, Jaffe Asso- ciates Inc., Detroit, from sales executive of strategic accounts for West, PEOPLE GUIDELINES Thomson Reuters, Detroit. Announcements are limited to Jeff Clare to senior vice president and management positions. Nonprofit associate director of strategic analyt- and industry group board ics, Campbell-Ewald Co., Warren, appointments can be found at from campaign manager, Draftfcb www.crainsdetroit.com. Send Inc., New York; also, Amy Cronin to senior vice president and associate di- submissions to Departments, rector of data analytics, from vice Crain’s Detroit Business, 1155 president and associate director of Gratiot Ave., Detroit, MI 48207- data analytics; and Dawn Price to se- 2997, or send e-mail to nior vice president and manager of fi- [email protected]. nancial analysis, from senior finan- Releases must contain the person’s cial analyst. name, new title, company, city in which the person will work, former NONPROFITS title, former company (if not Todd Rogers to director of in-home promoted from within) and former services, Lutheran Social Services of city in which the person worked. Michigan, Detroit, remaining presi- Photos are welcome, but we cannot dent, Kaltar Corp., Harrison Town- guarantee they will be used. ship. Page 28 CRAIN’S DETROIT BUSINESS October 26, 2009 REAL ESTATE

AUCTIONS COMMERCIAL PROPERTIES AUCTIONS

$EVROXWH$XFWLRQ&RPPHUFLDO%XLOGLQJV Royal Oak busy corner at light, site plan approved PUBLIC AUCTION %RWK6HOOLQJWR+LJKHVW%LGGHU%XLOGLQJVDUHDGMDFHQWWRHDFKRWKHU for 10,400 sf shopping center or medical office. By Order of U.S. Bankruptcy Court Two Commercial Buildings & Property 3UHYLHZ:HGQHVGD\1RYHPEHUWK WK1RRQ²SP Sell, land lease or joint venture with tenant. Wednesday, November 4, 2009 @ 12:00 Noon Location: 874-880 Bowers St., Birmingham, MI 48009 7HOHJUDSK5RDG 86 LaKritz-Weber & Company 248-353-9494 Just off Adams – Between Woodward 'HDUERUQ+HLJKWV0, Two Commercial Buildings w/ 7,352 SqFt, Zoned MU-3, Mixed Use, in the City of Birmingham. Good Access by way of Woodward Ave & Maple Rd to I-75 & I-696. These commercial buildings will be INDUSTRIAL PROPERTY 2QVLWH7KXUV1RYHPEHUWKDWSP offered in two Tracts via the multi-parcel method as follows: 3UHYLHZ 5HJLVWUDWLRQSP TR #1: 874 Bowers St - 2,520 SqFt, 1- Story Sterling Heights -- Industrial Building Commercial Building, free standing, Cold 7KLVVTXDUHIRRWEULFNEXLOGLQJZLWKIHHWRI IURQWDJHRQ7HOHJUDSK5RDG ** Free Rent AND Moving Costs ** Storage/Warehouse of masonry construction 86 DQG LV FXUUHQWO\ EHLQJ XVHG E\ 1DSD $XWR 3DUWV ZLWK DSSUR[LPDWHO\ built in 1968. Building has 50' frontage on VTXDUH IHHW RI UHWDLO DUHD LQ WKH IURQW RI WKH EXLOGLQJ ZLWK WZR UHVWURRPV DQG WKH 3,200 sq ft to 6,400 sq ft Bowers Street, a fenced lot & rear access. UHPDLQGHULVXVHGIRUZDUHKRXVHVWRUDJH7KHKXJHVWRUDJHDUHDKDVIRXURYHUKHDG GRRUVDQGDORDGLQJGRFNIRUHDV\GHOLYHULHV Easy access to M-59 and I-696 248-842-3336 TR #2: 880 Bowers St - 4,832 SqFt, Block 7HOHJUDSK5RDG 86 building constructed in 1977. 2-Story [email protected] Commercial Building; presently a paint & body 'HDUERUQ+HLJKWV0, shop. Building offers: Front Lobby, Body Shop/Service Area w/two OH doors, 4 Rooms, 1 2QVLWH7KXUV1RYHPEHUWKDWSP Industrial building in Warren for sale or lease BA, Upstairs Office w/BA & storage area. 3UHYLHZ 5HJLVWUDWLRQSP &DU3DUNLQJ/RW 19,872 sq. ft. with 3.1 acres and 440 ft. of Building has 50' frontage on Bowers Street. +LJKO\VRXJKWDIWHUORFDWLRQRQ 86 MXVW1RUWKRI )RUG5RDG3UHYLRXVO\XVHGDVD Groesbeck frontage. Lots of possibilities. Would Be sure to look these investment properties over. You set the price - buy one or both!! To view these properties, please call the Auction Company. Terms: 10% down day of sale; balance at closing. Purchaser must show Proof of Ability to Close on Sale. UHVWDXUDQWQLJKWFOXEKDOOWKHSDUNLQJORWZLOODFFRPPRGDWHFDUV/DUJHEDUDUHD consider trade for resort property of equal value. ZLWKWZREDUVDQGGDQFHIORRUZLWKDQHOHYDWHG'-VWDWLRQ.LWFKHQDUHDLVWLOHGZLWK Wendy Turner Lewis, Trustee Case #08-51838 $545,000.00 possible owner to help with financing. FHUDPLFWLOHIORRUVDQGKDVDZDONLQIUHH]HU5HVWURRPVKDYHEHHQHOHJDQWO\UHQRYDWHG WILSON AUCTION & REALTY CO., LTD. 7KHXVHVIRUWKLVVTXDUHIRRWEXLOGLQJDUHHQGOHVV 586-468-8411 Toll Free: 866-870-5500 5RVH$XFWLRQ*URXS//& %HWK5RVH Auctioneer: Wayne M. Wilson, CAI RU5RVH$XFWLRQ*URXSFRP &$,$XFWLRQHHU *Visit our Website for Complete Details* www.WilsonAuctionLtd.com

November 10 at 6PM Multi-Million Dollar Offering HIGHLAND PARK ([FOXVLYH$XFWLRQ3DOPHU:RRGV INDUSTRIAL SPACE 2QVLWH6XQ1RYWKDWSP FOR LEASE 3UHYLHZ 5HJLVWUDWLRQDWSP $2 Sq. Ft. + Utilities 6WUDWKFRQD'HWURLW Auction 34,000 Sq. Ft. By Order of US Bankruptcy Court Case #08-11973KG Warehouse Space & Large Heated Office with A/C 6XJJHVWHG2SHQLQJ%LG 5 — Commercial/Industrial Buildings 34’ High Bays 2ULJLQDOO\/LVWHGDW (Formerly Cadence Innovation) 60’ Column Spacing Large Overhead Door 2SHQ+RXVHV6XQ1RYVW 1RYWKIURP1RRQSP ᮣ 35135 Groesbeck Hwy, Clinton Twp, MI. *125,684 total sq. ft. 24/7 Security $KRPHWREHHQYLHG:DONLQWRWKHVWXQQLQJVODWHIORRUVWKDWOLQHWKHHQWU\DQG ᮣ 35207 Groesbeck Hwy, Clinton Twp, MI. *5,000 total sq. ft. Easy access to I-75 & OLEUDU\ZLWKEXLOWLQERRNVKHOYHVDQGUDGLR2IIHUVVTIWZLWKEHGURRPV ᮣ 34410 Commerce, Fraser, MI. *26,286 total sq. ft. Davison Fwy. DQGEDWKV(QMR\\RXUHYHQLQJVLQWKHVSDFLRXVOLYLQJURRPZLWKILUHSODFHDQG ᮣ 10230 Holly Rd., Grand Blanc, MI. *329,898 total sq. ft. 313-865-3154 ED\ZLQGRZV/RYHWRFRRN"7KHNLWFKHQLVDFKHI ·VGUHDP&XVWRPGHVLJQHGZLWK ᮣ Mon-Fri JUDQLWH FRXQWHUV 2IIHUV EXLOW LQ IUHH]HU DQG YHJHWDEOH GUDZHUV FXVWRP NQLIH 29 Superior, Hillsdale, MI. *129,310 total sq. ft. GUDZHUVWHDPHUZRNEXUQHUWZRRYHQVZDUPHUVLQNVVXE]HURUHIULJHUDWRUDQG VRPXFKPRUH7KHIRUPDOGLQLQJURRPIHDWXUHVXQLTXHOLJKWLQJDQGFKLQDFDELQHW AVAILABLE NOW ,QYLWH\RXUIDPLO\DQGIULHQGVDQGHQMR\WKHKRPHWKHDWHULQWKHIDPLO\URRPMXVW RII WKHODUJHFRPSRVLWHGHFN)LUVWIORRUPDVWHUVXLWHRIIHUVPLUURUHGGRXEOHFORVHWV 4,000 to 100,000 sq. ft. DQGPDVWHUEDWKZLWKJUDQLWHFRXQWHUVDQGGRXEOHVLQNV&OLPEWKHZLGHVWDLUFDVHWR Also 10,000 & 25,000 sq. ft. WKUHHEHGURRPVZLWKPDQ\EXLOWLQV)LQLVKHGEDVHPHQWRIIHUVDODUJHJDPHURRP Free Standing Bldgs w/truckwells. FHGDUZDONLQFORVHWDQGEDWKZLWKEXLOWLQKRWWXE+RPHLVORDGHGZLWKUHFHVVHG For a complete bidders packet contact: 1 Mile from Metro Airport WUDFNOLJKWLQJDQGGHVLJQHUZLQGRZWUHDWPHQWV&DOOWRGD\IRUDEURFKXUH Miedema Auctioneering, Inc. REA CONSTRUCTION 5RVH$XFWLRQ*URXS//& %HWK5RVH (734) 946-8730 &$,$XFWLRQHHU www.1800lastbid.com or 1-800-lastbid (527-8243) 0LFKLJDQ6WDWH Also Heavy Industrial URVHDXFWLRQJURXSFRP $XFWLRQHHU&KDPSLRQ Land Available AUCTIONS www.reaconstruction.net OFFICE SPACE Bank Auction Thursday, December 10, 2009 INVESTMENT PROPERTY UNIQUE OFFICE SPACE Embassy Suites Hotel Real Estate Drop Dead Deals 28100 Franklin Road (I-696) Gratiot & 24 Mile Road 1,271 ft. of frontage $49,000 MICHIGAN BUILDING Southfield, MI 48034 per acre. Macomb Twp. residential sub $12,500 per 220 BAGLEY, DETROIT, MI 48226 lot. Macomb Twp. condo sub $7,500 per site. (at Grand River, adjacent to Grand Circus Park) Notes secured by Real Estate Bill McMachen 586.915.4441 Mortgages The Michigan Building has NO DEBT of any kind, SUBSTANTIAL CASH RESERVES and Personal Guarantees Real Estate 20 cents on the dollar is a very, very financially stable 13-story office and retail building. Macomb Twp residential lots $14,000 each. For additional information contact: Pine Knob area residential sub 2-acre lots $50,000 • 85% occupied, owner managed. Howard P. Lee & Associates, Inc. each. 50,000 sf building M-59 and Airport Road • 2 minutes from I-75 and 3 minutes from the Lodge. 300 East Fourth Street $500,000 -- terms 25,000 down, 4% interest, 5-year/25-year. Royal Oak, MI. 48067 • On site covered parking (in the famous Michigan Theater parking garage) for tenants only. 248-399-4527 Bill McMachen 586.915.4441 (Abundant, reasonably priced adjacent parking for building visitors. [email protected] Lee & Associates or • HIGH SECURITY; 24-hour lobby guards; CCTV throughout. Dennis Harris Call Us For Personalized 39111 W. Six Mile Road • New computer-operated, zoned, steam heat system. Service: (313) 446-6068 Livonia, MI 48152 • All contractors are paid upon completion of services rendered (all of our contractors are 734-591-7210 CLOSING TIMES: Monday 3 p.m., therefore immediately responsive - no wait for A/C repairs, etc.) [email protected] one week prior to publication date. Please call us for holiday closing times. • Several smaller suites available now. FAX: (313) 446-1757 • Up to 40,000 sq. ft. - POSSIBLY available May, 2010. E-MAIL: [email protected] INTERNET: • Very competitive rates. Call or email today for information www.crainsdetroit.com/section/classifieds on a custom advertising plan! Confidential Reply Boxes Available • New state-of-the-art high speed elevators maintained under long-term contract with OTIS. PAYMENT: All classified ads must be prepaid. Checks, money order or • Over $1,000,000 of owner’s cash invested for building upgrades during past 6 years, Crain’s credit approval accepted. [email protected] Credit cards accepted. BROKERS PROTECTED See 313.446.6068 Crainsdetroit.com/Section/Classifieds Call Wendy at 313-963-5270 8:30 a.m. to 5:00 p.m. or for more classified advertisements email to: [email protected] 20091026-NEWS--0029-NAT-CCI-CD_-- 10/23/2009 5:46 PM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 29 Plan would tax services, lower sales tax LANSING — A new not as a measure to to form in support of comprehen- cates “people don’t think it’s wrong will participate in conversations on proposal to lower Michi- shore up the still-to-be- sive tax reform in the weeks and that certain services be taxed.” the plan should it move forward, gan’s sales tax and ex- Capitol inked fiscal 2010 budget months ahead.” But the group isn’t yet weighing but the group’s priority is to see pand it to services is edg- Briefings but to start the discus- The ideas in Meadow’s proposal in publicly on Meadows’ plan. structural reforms to address the ing onto the Capitol sion on Michigan rev- are among those that have floated Asked last week for comment, state’s budget problems “before we landscape, with House enue restructuring around Lansing in behind-the- President and CEO Doug Rothwell talk about raising taxes.” Speaker Andy Dillon say- that’s needed long term scenes business-community talks said he did “not wish to talk about He also said that while the ing he supports the direc- to avoid continual bud- on tax reform. any tax proposals until the budget chamber supports relief from the tion it takes. get crises and cuts. Business Leaders for Michigan, the is resolved.” nearly 22 percent surcharge on the The plan, introduced “It is part of the post- newly formed statewide CEO Meadows’ proposal would ex- MBT, trading “surcharge relief for last week by State Rep. budget world that we’re group, has voiced support for exempt business-to-business transac- a brand new service tax just isn’t a Mark Meadows, D-East trying to create, which tending Michigan’s sales tax to tions, services provided by nonprof- good deal.” Lansing, would lower hopefully includes sub- consumer services and lowering its, physician services and It was unclear late last week Amy Lane Michigan’s 6 cent sales stantial tax reform for the 6 percent rate to an undis- educational services. Meadows said how much money the proposal and use taxes to 5 cents and extend the state of Michigan. So we don’t closed level, with business-to-busi- the latter, by reference, would prob- would raise, but it is expected to them to services, raising money to have to deal with this year after ness services and some other ably exclude taxing high school and provide an additional $673 million help fund revenue sharing, K-12 year,” Meadows said. items excluded from tax. college athletic events, although in K-12 funding and $522.5 million education and repeal of the Michi- Dillon, D-Redford Township, At a Lansing news conference in professional sports and other forms for revenue sharing, as well as gan Business Tax surcharge. said in a statement that he is still September, David Brandon, chair- of entertainment would be taxed. funds that would go toward repeal- Meadows said he is putting forth reviewing the proposal but sup- man of the group and chairman and Brad Williams, director of gov- ing the MBT surcharge. the plan — House Joint Resolution ports its “general direction. I be- CEO of Domino’s Pizza Inc., said ernment relations for the Detroit Re- Amy Lane: (517) 371-5355, KK and House Bills 5527-5529 — lieve we will see a coalition begin polling the group has done indi- gional Chamber, said the chamber [email protected] Delphi spinoff SpaceForm leaves TechTown, forms joint venture

BY TOM HENDERSON censes for the technology and in 2006. DTI is a subsidiary unit of solutions to industry, instead of Piette originally joined Space- CRAIN’S DETROIT BUSINESS welding equipment to use it. Delphi Corp. that commercializes being a one-trick pony,” said Tom Form in 2006 as part of Wayne State Madison Heights-based Welding the parts giant’s large portfolio of Anderson, Automation Alley’s University’s Adam Fellowship pro- SpaceForm Inc., a spinoff from Solutions Inc. and SpaceForm have patents. chief scientist. gram, in a grant valued at $87,000. Troy-based Delphi Technologies Inc. merged to form new venture The former Delphi Corp. “We’re looking forward to He said he hopes to add seven or and until recently a research firm SpaceForm Welding Solutions Inc. emerged from Chapter 11 bank- working with the new venture as eight technicians before the end of being incubated to develop its nov- Welding Solutions’ parent com- ruptcy this month and is now it gains momentum, gains cus- the year. The company currently el welding technology at Detroit’s pany, Weldmation Inc., also based in called Delphi Holdings L.L.P. tomers and gains profitability, employs two. TechTown, has left the nest. Madison Heights, will be a 50 per- U.S. bankruptcy court gave ap- which will eventually allow it to Tom Henderson: (313) 446-0337, It has formed a 50-50 joint ven- cent owner. Shareholders in the proval to the merger in September. pay us back.” [email protected] ture with a major area welding other 50 percent include Delphi, The new entity is housed in about company that has transformed Automation Alley and the Michigan 7,000 square feet of Weldmation’s SpaceForm from being a research Economic Development Corp. 300,000-square-foot building on and development company trying Both Automation Alley and the Stephenson Highway. to commercialize its technology to MEDC were early funders when SpaceForm’s niche in the weld- a manufacturer offering both li- SpaceForm was spun out from DTI ing industry is something called deformation resistance welding, WITH MICHIGAN COLLEGES FOUNDATION which allows for welds on metals and shapes that previously could- n’t be welded — such as metal MARKET PLACE tubes joined to each other or to sheets of metal — and for metals of different thicknesses and grades of TELECOMMUNICATIONS ANNOUNCEMENTS & metal to be joined, as well. SERVICES Welding Solutions is a specialist We can help reduce your voice/data costs! in a patented process called Super- DELIVERY SERVICES Contingency guarantees no payment due ATI if MIG welding, a hybrid process savings are not achieved. TIME AUTO TRANSPORT that combines plasma arc welding s &OURTEENEXCEPTIONAL-ICHIGANCOLLEGESANDUNIVERSITIES 800-624-2021 We have completed cost recovery projects with something called metal-inert INTHELIBERALARTSTRADITION Special Back Haul Rates Off Lease throughout the US for over 1,000 companies saving gas welding. Internet Auction Sales over 100 million dollars. SpaceForm’s early progress was s &OCUSEDONSTUDYAREASTHATWILLDRIVE-ICHIGANS 33 Years Service Call: 248.515.0734 or visit www.auditbills.com funded with nearly $3.2 million in REVITALIZEDECONOMY Ship Snowbird Cars Worldwide grants from NASA’s Man on the $100,000 Insured Per Car s ,INKING-#&INSTITUTIONSANDPROGRAMSTOSTATEWIDE BUSINESS & Moon and Man to Mars programs. It recently was told it has won ORGANIZATIONSINHIGHIMPACTGROWTHAREAS FINANCIAL SERVICES INVESTMENTS another NASA grant of $500,000, s #REATINGANEWGENERATIONOF-ICHIGANLEADERSFORTHE said SpaceForm President Alain BUSINESSES FOR SALE STCENTURY SBA Loans, Commercial Lending, Piette, who will serve as president Purchase or Refinance Heavy sheet metal stamping business of the new entity. ADRIAN COLLEGE includes patented product. 50 presses, up Piette said that SpaceForm’s Industrial, Hospitality, Medical/Dental/Veterinarian to 500 tons. Tool and die build and repair. ALBION COLLEGE Practices, Gas Station, Auto Wash, etc. In business 84 years. Call 248.348.2829 current revenue is less than $1 mil- ALMA COLLEGE lion in licensing agreements to Gemstone Financial Group Inc. 800-908-0853 FRANCHISE OPPORTUNITIES ANDREWS UNIVERSITY www.gemstonefinancialgroup.com manufacturers in the transportation market. “It will be very feasi- AQUINAS COLLEGE CALVIN COLLEGE LEGAL SERVICES - IMMIGRATION Rare Franchise Opportunity ble to add a couple of million in After exponential growth, revenue over the next two or three HILLSDALE COLLEGE A School for the Mind years,” he said. HOPE COLLEGE Antone, Casagrande & Adwers, P.C. and Body is offering KALAMAZOO COLLEGE AV-rated Immigration Law Firm franchise opportunities “It has been a long road, to go Firm’s Principal is an Adjunct Immigration Law for qualified buyers. Our from a technology concept, to rais- MADONNA UNIVERSITY sought after educational Professor at MSU ing funds, to becoming a commer- MARYGROVE COLLEGE concept focuses on Farmington Hills, MI 48334 character development, nutrition and exercise. cial company,” said Piette. He said OLIVET COLLEGE Phone (248) 406-4100, www.antone.com SIENA HEIGHTS UNIVERSITY Call to explore the chance to be at the forefront of a the merger provides a map toward personal health and wellness program in early child- an eventual exit for its original SPRING ARBOR UNIVERSITY hood education in an exceptional and proven business shareholders. MISCELLANEOUS format. Piette said that as part of the www.schoolforthemindandbody.com deal approved by the bankruptcy ELECTRONIC ITEMS FOR SALE 248.814.7100 Brand New Apple Iphone 3G S 32GB $450. court, SpaceForm bought laborato- Blackberry 9630 TOUR $350. Sidekick LX 30 ry and other equipment from a Invest in the future of Michigan through Michigan Colleges 2009 $200. Nokia N97 32GB $400. PlayStation 3 Foundation 2009 “Moving Michigan Forward” Campaign 80GB $300. Samsung 541cd TV $800. Brand Advertise your Delphi facility in Vandalia, Ohio. New Canon 1DS Mark III Camera $1,000 (Buy 3 “We’re excited about it. It cre- #ALL ORDONATEATWWWMICHIGANCOLLEGESORG get 1 Free,Buy 5 get 2 Free) Products and Services in 1UESTIONS E MAIL DSNYDER MICHIGANCOLLEGESORG [email protected] ates a welding-solutions company 206.600.5422 Crain’s Detroit Business that can offer a broader range of 20091026-NEWS--0030-NAT-CCI-CD_-- 10/23/2009 6:07 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS October 26, 2009 Country club: DAC eyeing merger ■ From Page 1 The club-within-a-club proposal ?D=? 8H comes at a time when clubs are los- ing members because of the reces- Economy takes swing at golf sion and are looking for ways to retain members by expanding While Forest Lake Country Club options and cutting fees. said it is profitable as it prepares Both Forest Lake and the DAC, for a possible merger with the De- (E<< which say they are profitable detroit Athletic Club, the state’s golf spite recession-fueled membership industry is mirroring a national declines, are expected to retain decline. $ • All stadium seating Michigan has 829 golf courses J7D: • Digital sound & projection their own brand identities, but the 7H=;9EC8EII?EDI • Cocktails served country club may operate with the out of nearly 16,000 nationally, 7DOB • Private party rooms DAC name somehow involved. and an estimated 1.3 million 7JJ>;9ED9; • Private theatre rentals Expires 12/1/09 (CRP2009) Town hall-style membership golfers. Last year, the state saw meetings are being planned for one new course open and 10 shut ;cW]_d[9Wdjed ;cW]_d[Del_ ;cW]_d[MeeZ^Wl[d 9_d[cW>ebbomeeZ down, according to the Jupiter, Ford Road east of I-275 12 Mile Road 21720 Allen Road Dixie Hwy. in Birch Run both clubs to discuss the deal prior to member votes. The clubs e- Fla.-based National Golf mailed news of the proposed merg- Foundation. er to members over the weekend. No private Michigan golf clubs Both clubs’ executive boards opened or closed last year. unanimously approved the letter Nationally, 72 courses opened COURTESY OF FOREST LAKE COUNTRY CLUB in 2008 and 106 closed — the third A fairway at Forest Lake Country of intent. Club in Bloomfield Hills. IM;;FIJ7A;I8;=?DI''%'%&/ Forest Lake has 225 to 230 equity consecutive year in which clos- mmm$[cW]_d[#[dj[hjW_dc[dj$Yec golf members and has capacity for ings outnumbered new course roughly 100 such memberships openings. missioned by the Michigan Golf available for DAC members. Michigan ranks behind only Alliance, a coalition of several The country club’s current equi- Florida (1,064), California (935) golf industry trade groups in the ty golf memberships require a and Texas (835) in total number state. $15,000 initiation fee (up from a re- of golf courses. Forest Lake said it had more cent discount in the $5,000 to The state’s golf industry was than 100 golfers come out for the $10,000 range, but down from estimated in a 2006 survey at club’s final day of golf season, $45,000 a few years ago) and $550 $4.2 billion, based on direct, in- and that while membership is monthly dues. direct and induced economic im- down slightly, usage is up. DAC memberships start with a pact, according to a report com- — Bill Shea $2,500 entrance fee (discounted coffee!! earlier this year from $5,000) and cost $300 monthly for its largest Croskey and Brodie said they opportunity!! membership category but do not OTHER CLUBS were seeking ways to expand membership benefits amid a provide equity. The DAC dates to The Wisconsin Club, a social and changing private club landscape 1887, but opened its Albert Kahn- business club in downtown interested?? designed neo-Renaissance build- Milwaukee similar to the DAC, is in locally and nationally. ing in 1915. the process of leasing a private “Most of the city clubs are hold- Forest Lake, which opened in country club for 10 years with an ing their own, though revenue is franchise?? 1926, also has about 70 of its 150 so- option to buy. That deal, which down. They’re sort of in hunker- cial memberships available. Those begins Nov. 1, changes the name down mode,” said Susanne We- are not equity memberships. of Milwaukee’s Brynwood Country grzyn, president and CEO of the Club to the Wisconsin Club. Call Jobi Schaeffer The premiums for DAC resident Washington D.C.-based National member access to the country The 100-year-old Cleveland Club Association, a trade group for (517) 913-1987 or Athletic Club closed in 2007 and club’s pool, golf the private club industry. [email protected] the owner of the 15-story building Her organization estimates that course and ten- is being sued for failing to make private clubs — golf, country, tennis facilities are payments on a $2.5 million still unknown. mortgage. CAC Buildings Properties nis, yacht and city clubs such as www.biggby.com “We have to L.L.C. intended to renovate the the DAC — are a $13 billion indus- figure out what building into residential, office and try with about 300,000 employees. the demand is retail space, but is being sued by Twenty percent of U.S. country before we set New Jersey-based Waring clubs are in some danger of shut- prices,” said Investments Inc. ting down, said Frank Vain, presi- David Croskey, The Downtown Athletic Club in dent of St. Louis-based private the country Lower Manhattan, known for club consultants McMahon Group. Croskey annually awarding the Heisman club’s vice pres- That has golf and city clubs in Trophy to the nation’s top college talks. ident and president-elect. football player, was heavily damaged “We’re seeing a trend toward Charging premiums allows For- in the Sept. 11, 2001, terrorist est Lake to prevent the pool and attacks. It declared bankruptcy in discussion more than consumma- golf course from becoming deluged 2002 and never reopened. Its tion. It’s still the most difficult with new members. building was converted into a thing to pull off in the club field,” Seven current DAC members 45-story condo unit. he said. are also Forest Lake members. Merging allows the DAC and Go Green. A single board operating under talks, but it’s possible they could Forest Lake to explore cost-sav- one charter would oversee both return to strike similar arrange- ings, too. clubs: DAC’s current 18-member ments, giving DAC members mul- The clubs also share the same Green. board would be expanded to in- tiple golf options, Brodie said. hospitality workers union, Unite clude three permanent rotating Forest Lake is within a 10-mile Here Local 24, which is affiliated members from Forest Lakes’ radius of 1,100 DAC resident mem- with the Change to Win Federation Reduce your solar installation costs board, which would act as an over- ber families, said Cleary, a third- coalition of unions. The DAC has up to 85% by taking advantage sight committee for golf. generation DAC about 260 employees (some in oth- A single general manager would member and re- er unions) and the country club of limited time incentives and oversee both clubs. tired real estate has 50 to 60. A merger could allow tax credits. Talks between the clubs have industry veter- employee sharing. been under way for eight months. an who helped Forest Lake was not on the mar- DAC President Richard Brodie broker the deal. ket, but had been looking for some and board member Mark Cleary Executives time to forge relationships with said they assembled a list of 34 from both clubs other organizations, Croskey said. metro Detroit golf clubs for poten- stressed that the “People were not positively re- tial relationships and whittled it to organizations sponding to us, to our surprise,” 24, then 10. After talks with those are profitable. he said. 10 clubs, the list was reduced to Brodie “We have had If either membership votes Contact Joshua Brugeman to three before the preliminary deal some membership issues,” Brodie down the deal, organizers said schedule a consultation. was struck with Forest Lake. said. “But we will be profitable they would find out why and try to [email protected] Brodie and Cleary declined to this year and we will be profitable create a new deal. 734.864.0364 name any of the other clubs. in 2010. Both clubs are profitable Bill Shea: (313) 446-1626, www.jsvig.com The other two finalists broke off on their own.” [email protected] 20091026-NEWS--0031-NAT-CCI-CD_-- 10/23/2009 5:45 PM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 31 Portfolio: Foundations see values rebound along with markets ■ From Page 3 by the Independent Consultants Co- age on how much the public equi- an investment committee approv- operative, a Boston-based consor- ty portion of his portfolio has ing and overseeing investments. tium of independent investment Our investments gone up, “but it’s north of 20 per- All the public Normally it meets quarterly. consulting firms, is up year to date “ cent.” “ For much of the last year, it through the first nine months by recovered quite He cautioned that larger foun- stuff has rallied. met monthly over concerns gener- 17.2 percent. dations have more nonpublic in- ” ated by a sharply declining portfo- “Our investments recovered nicely. vestments than smaller founda- Robert Manilla, lio. quite nicely,” said Dorothy ” tions — such as venture-capital Kresge Foundation While it did some tweaking, its Benyas, CFO for the Bloomfield Dorothy Benyas, Jewish Federation funds, buyout funds, real estate philosophy remained “to invest for Hills-based Jewish Federation of of Metropolitan Detroit and oil and gas trusts — and that in the first quarter. the long-term.” Metropolitan Detroit. From the be- overall portfolio performance this “But all the public stuff has ral- These days, she said, the com- ginning of the year through Au- runs. We’re here to hit singles and year will be affected by whether lied,” he said. mittee is back to its quarterly gust, the federation’s balanced in- doubles.” write-downs on those investments Karen Leppanen, vice president schedule. vestment fund, which makes up Robert Manilla, vice president in 2008 were booked in the fourth of finance for the Detroit-based The portfolio was up 12.3 per- the bulk of its endowment of sever- and chief investment officer for quarter last year or the first quar- Community Foundation for Southeast cent as of the end of August. al million dollars, was up 15.5 per- the Troy-based Kresge Foundation, ter this year. Michigan, is another NEPC client. Tom Henderson: (313) 446-0337, cent. declined to put an exact percent- Kresge booked its write-downs Like other foundations, it also has [email protected] That is in sharp contrast to the fiscal year ending May 31, when it was off 20.8 percent. The federation, like many of NEPC’s clients, reduced its stake in equities a year ago and built up cash reserves over fears of liquidity and wanting to have money on hand to manage day-to-day business and be able to fund philanthropic missions. It was able to reduce cash and get back into equities in time to Fklsbovlroebâ< ride the rising market. Kenney said other investment trends, as clients reduced their equity positions, were to invest in corporate bonds — which were generating historically high yields — and to invest in double A- and triple A-rated mortgages, which were trading for 50 cents to 60 cents on the dollar. “Even factoring in defaults, you could make money, given the discount,” said Kenney, whose firm has 14 endowment and foundation clients locally with $2 billion in assets, said Kenney. Nationally, it has 95 such clients with $42 billion in assets. The Fisher foundation is up “in the low double digits,” said Cragg, a result of a decision to play it con- servatively as markets started to rebound earlier this year by main- taining a strong liquidity position. The foundation redeemed some of its hedge fund positions early last year when they showed early signs of struggling, which gave it a cash cushion to get through the worst of the market collapse. When most foundations were worried about liquidity, Cragg had the luxury of having plenty of cash on hand. The foundation’s financial position also was aided by the timing of Max Fisher’s death in 2005. By the time money from his estate began flowing into the foundation, markets were declining and Cragg didn’t have time to build up nearly Fksbpqlop qbka ql cl`rp lk lkb qefkd7 >ka qeolrde qfobibpp afp`fmifkb) tb âebob ql as much of an equity stake as she òb^qfkd tbîqe+ ?rq qebobÒp ^k bnrîiv pqo^qbdf` ^ppbq îil`^qflk qôdbqp ^ka _olâ would have if she had the money earlier. fjmloq^kqafjbkpflkqlilkd*qbojÛk^k`fî afsbopfÛ`^qflk^òlpp^ppbqì^ppbptfqesôvfkd “But that’s not to say we didn’t pb`rofqv7 mobpbosfkd tbîqe+ >q Dobbkib^c `loobi^qflkp+Fc fqplrkap`ljmif`^qba^kaqfjb lose money in the fourth quarter. Qorpq)tbj^hbfqlro_rpfkbppqlfkafsfarîiv `lkprjfkd) vlrÒob ofdeq+ FqÒp tev fksbpqlop We did,” she said. “Carrying that cash into this year served us well `lkpqor`q bsbov mloqclifl ql obÜb`q b^è tfqe ^sbo^db Ûk^k`fî âsfpbop in the first quarter. It didn’t serve ìfbkqÒp ^_fifqv ^ka tfiifkdkbpp ql ^pprjb fksôf^_ivofpb^kacîitfqeqeb us as well in the second and third quarters. But we decided it would ofph+Tbafsbabbmivfkqlbnrfqv^kîvpfp)^ka jôhbq)_rqoôbivd^fkdolrka+ be best to not be fully invested and %tfqe kl `lkÜf`qp lc fkqbobpq& ofdlolrpiv FqalbpkÒqe^sbql_bqe^qt^v+ have the upside of more liquidity. “Because we stayed liquid, we pr_gb`q fksbpqjbkqp ql ^ molmofbqôv ^ka @îi Jôh G^kklqq ^ka tbÒii didn’t keep up with some of the pqofkdbkq qtbisb mlfkq Ïm^pp lo c^fiÐ qbpq+ mriivlrqlp^cbqv+ Cfk^k`fîPb`rofqvcoljDbkbo^qflkqlDbkbo^qflk others this year. But we didn’t lose as much as the others last year. That’s fine with our board. We’re .//`lk`loaolâprfqb.-/_illjcfbiaefiip)jf150-1ttt+dobbkib^cqorpq+`lj/15+010+6---5--+1.3+1222 not in the business of hitting home 20091026-NEWS--0032-NAT-CCI-CD_-- 10/23/2009 6:08 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS October 26, 2009 Mayor: Many see Bing-Barrow choice as pivotal for Detroit ■ From Page 1

Louis, the kind of us-versus-them the late Mayor Coleman Young. In Barrow, you take the alternative of the most complex and difficult But Mongo said Barrow’s not of- message that’s produced results at 1989, Barrow lost to Young with 44 to Bing-ism … then he takes all things to understand.” fering better choices. the ballot box in the past. percent of the vote. these interest groups that are be- Without job creation, Rakolta Said Cockrel: “We have no alter- But political watchers say In 1993, the CPA was convicted ing dinged by Bing, takes up their said, the city offers residents de- native but to make profound and they’re not sure how the old of tax fraud and evasion and cause, and says it doesn’t have to spair, not hope. fundamental changes in the way rhetoric will fare in this election. served 18 months in prison. A U.S. be this way. This interloper, this “In my view, the transparency we conduct business, but also in And how Detroit decides could sig- Tax Court ruled in his favor, but a carpetbagger has come in, and is issue is getting city government to the community shared view of nal a change in the city’s politics, U.S. District Court denied Bar- trying to take things away from function properly,” he said. what the role of government is and on what wins Detroit votes. row’s request to overturn the con- you but I’m going to fight your “There are still power centers in the expectation one should have of But there’s more at stake. De- viction. fight.” the city that have not fully appreci- your elected officials and city gov- troit voters face a crossroads, “Tom Barrow had a lot of pro- But Detroiters may have soured ated what happened in the world, ernment. some say: a referendum on the gressive ideas over 20 years ago, on that kind of campaign rhetoric, what global competition has done “The historic model of govern- city’s philosophy of government — but then he had some issues,” said Ballenger said. for us. … We need to make our ment as the front- and its future. Adolph Mongo, of “I think people in Detroit realize economy competi- line safety net and “The future for Detroit-based po- that they have heard the refrains tive on the job site the end-of-the-road this city is truly Attempts to litical consulting from Barrow and people like him … and I think that If you’ve got to safety net and the going to be shaped “ firm Adolph Mongo going back a long time, and none of Dave Bing is the “ middle-of-the-road by how people vote appeal to emotion, and Associates Inc. it seems like it’s brought Detroit guy who under- cut, cut. But Dave safety net is un- in this election,” “Tom’s been stuck back from the abyss,” he said. “It stands all of that, sustainable in the said Detroit City to pit the people of in a freezer for a seems like Detroit’s in worse and he can do Bing isn’t selling it current climate. Councilwoman the city against the long time. You pull shape than it has been, and we something about right. Don’t act Our expectations Sheila Cockrel, him out and he’s need some major surgery done by it.” need to be driven who’s spent 16 mayor ... does not not fresh any- somebody who’s not afraid to take Bing may not like ‘I’m going to by the following years on the coun- more. He’s been in risks and chances.” have endeared values: What is the cil, and isn’t run- the freezer too Detroit needs a leader who is himself to Detroi- way to get the ning for re-elec- in any way, shape long, God bless transparent and ters during his do what I’m going highest level of tion. him.” focused on job tenure in office, service at the low- “I believe that or form address the Barrow’s mes- creation, said Mongo said, to do.’ est possible cost the attempts to ap- sage isn’t surpris- John Rakolta adding that some ” Adolph Mongo, for the greatest peal to emotion, to depths of the ing, said Bill Bal- Jr., chairman feel Bing’s busi- Adolph Mongo and Associates Inc. number of peo- pit the people of lenger, editor of and CEO of De- ness credibility crisis. ple?” the city against Lansing-based troit-based Wal- has been compro- ” If Bing loses, Ballenger said, the mayor because newsletter Inside bridge Aldinger, mised by the mayor’s recent an- Sheila Cockrel, making the broad institutional he was a resident Michigan Politics. who has made nouncement that he plans to sell Detroit City Council changes necessary to fix Detroit’s of Oakland Coun- “I think it’s en- campaign con- The Bing Group. budget becomes increasingly diffi- ty, does not in any way, shape or tirely predictable what Barrow is tributions to “I think if it was anyone else Rakolta cult. form address the depths of the cri- doing. What Bing is doing is not Bing. running against Dave Bing, he sis, the nature of the crisis or in necessarily predictable,” he said. “This election is about change. would be in trouble,” Mongo said. “Let’s put it this way: If Barrow any way speak to the kinds of “Bing could have taken it easy What kind of change does the city “The city is on the brink of finan- wins this election, this sends an in- skills and political courage needed and slow to the election — don’t need? It needs complete trans- cial collapse, but I don’t know if credible message,” Ballenger said. for a city at the crossroads.” ask people to make over-the-top parency on everything it does. I any one of them is the one to right “Whatever hope that remains Both candidates have limited sacrifices — but he hasn’t done think that’s what citizens deserve the ship. … If you’ve got to cut, cut. would be extinguished by a Bar- political experience. that.” and what the citizens want. What- But Dave Bing isn’t selling it right. row victory — that you cannot do Before winning his seat in the With Bing inhabiting the role of ever system we had in the past, Don’t act like ‘I’m going to do what the things that need to be done May special election triggered by the hard-nosed change agent, Bar- that’s not working,” he said. I’m going to do.’ Nobody’s talking without paying the ultimate penal- the departure of former Mayor row’s options are limited, Bal- “We say half of Detroit is unem- about bringing us some jobs, mak- ty as a politician, which is defeat. Kwame Kilpatrick, who pleaded lenger said. ployed. The official statistic is 30 ing it better. You can’t just cut, cut, You’d have somebody in there guilty to felony charges last year, “Barrow has taken what’s been percent, but we don’t believe that, cut. We’re not going to have any- that’s totally irresponsible, that’s a Bing — a former Detroit Piston and given him,” Ballenger said. “He so we argue if it’s 40 percent or 50 thing. demagogue, and the message that then-head of Detroit-based auto- starts off as an overwhelming un- percent, which doesn’t make any “Dave Bing has got to make it would send is: Detroit’s worse motive supplier The Bing Group — derdog, with handicaps — he’s a difference because it’s catastroph- some tough choices, and he either than you think, and you thought it had never held political office. convicted felon, he’s run and lost ic. Then the city becomes a power- needs to make them, or … I don’t was hopeless.” Barrow first entered politics in twice before — and he seemingly ful symbol in the complex issue of think he realized what he was get- Nancy Kaffer: (313) 446-0412, the 1980s, running twice against had nowhere to go but up. If you’re job creation. Creating jobs is one ting into.” [email protected].

Wind: $56M backs bid for Zug Island turbine drivetrain facility ■ From Page 1 nia, and Belgium-based Hansen tory in Golden, Colo.; and the Na- facturer, which we don’t have apart, it can be spectacular. It just Transmissions International NL and tional Renewable Energy Center in right now … that sets up the op- flies apart. No wonder people say, such engineering, testing and sup- Spain. If we bring in a portunity for Michigan suppliers ‘Not in my backyard.’ Manufactur- plier firms as Ricardo Inc. of Van Bu- Cooley told Crain’s he hopes to “ to diversify into those sectors.” ers claim they have 20-year life ren Township; AVL North America Inc. learn in mid-November if NextEn- turbine manufacturer, NextEnergy, the Detroit-based spans, and they break up in 18 of Plymouth; LMS of Troy, a busi- ergy wins the grant against com- nonprofit that aims to accelerate months, so you’ve got to be able to ness unit of Belgium-based LMS In- peting bids from organizations in ... that sets up the the state’s role in clean and alter- prove drivetrain reliability.” ternational NV; Munro & Associates Inc. at least six other states. nate energies, hired Albert Kahn In automotive testing facilities, of Troy; and Burke E. Porter Machin- “While we think we have the opportunity for Associates Inc., Detroit, to draw engines or powertrains are connect- ery Co. of Grand Rapids. best chance, in terms of having up plans for a 50,000-square-foot ed to dynamometers to test the en- State of Michigan commitments sent in the best proposal, you just Michigan suppliers. testing facility, which would ergy or power created, typically 100- total $19.2 million, including brown- never know,” he said. He said ” house two dynamometers, each 400 horsepower. NextWind’s would field remediation help from the De- Michigan’s 110-year history of Greg Main, MEDC capable of generating 10 be dynamometers on steroids. troit Economic Growth Corp., the Michi- drivetrain testing and develop- Cooley said he hopes the testing megawatts of power. The goal is for the facility to be gan Department of Environmental ment, its roster of partners and facility would spark development of In theory, Cooley said, they used by manufacturers around the Quality and Wayne County; infrastruc- matching funds that far exceeded an industrial park on the island. He could be coupled to test wind-tur- U.S. and the world to test drivetrain ture improvements by the Michigan the bid’s requirement of $29 mil- said it would make sense for wind- bine drivetrains capable of pro- components, such as gearboxes, Department of Transportation; access lion should help. turbine suppliers to manufacture ducing 20 megawatts of power, hubs, generators and controls. to bonding from the Michigan Depart- Cooley is ready to hit the ground prototypes in adjacent buildings. though 15 megawatts may be a The NextWind project dovetails ment of Energy, Labor and Economic running. He said funds should “We hope to attract suppliers more realistic target. with one of NextEnergy’s big Growth; and funding from the Michi- start flowing in January or Febru- and an OEM or two,” he said. “China is working on a 10 thrusts. Cooley said that over the gan Economic Development Corp. ary, and the project could be up “That’s an area that’s certainly in megawatt turbine. No one else is past two years, NextEnergy offi- Commitments from the University and running in 12-18 months. need of redevelopment.” doing anything approaching 20 cials have talked with more than of Michigan, Michigan State University, He said worldwide demand for Such a move — R&D attracting megawatts,” he said. 1,000 auto suppliers in Michigan Western Michigan University and 20 megawatt turbines could be in an OEM — is what’s needed to fos- “The key to wind-turbine scale- about getting into wind energy. NextEnergy total about $2 million. the tens of thousands over the ter a broader impact through cre- up is drivetrain reliability. It Tom Henderson: (313) 446-0337, Also on board are Sandia National coming decades: “That’s enough to ation of a supply chain, said Greg needs to last as long as you say it [email protected] Laboratories in Albuquerque, N.M., keep this area busy for decades.” Main, the MEDC’s CEO. will,” he said. “If you’ve never Ryan Beene: (313) 446-0315; the National Renewable Energy Labora- The DOE grant is for five years. “If we bring in a turbine manu- seen a wind turbine tear itself [email protected] 20091026-NEWS--0033-NAT-CCI-CD_-- 10/23/2009 6:33 PM Page 1

October 26, 2009 CRAIN’S DETROIT BUSINESS Page 33

CALENDAR Casino: Gilbert fights for Ohio votes www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] TUESDAY Committee, is the Southfield-based that time, Gilbert has been admit- sue 3 is approved by the voters on EXECUTIVE EDITOR Cindy Goodaker, (313) 446- OCT. 27 0460 or [email protected] Forbes Co., owner of the Somerset ted to the state bar of Michigan to Nov. 3,” Kulczycki said. MANAGING EDITOR Andy Chapelle, (313) 446- Detroit Economic Club. 11:30 a.m.-1:30 Collection in Troy, with a $43,000 practice law, approved by the Of- The guidelines for Ohio’s casi- 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette p.m. With James Rohr, chairman and contribution. fice of Thrift Supervision to sit on the no licensing will be crafted if the Smith, (313) 446-1622 or [email protected] CEO, PNC Financial Services Group. The Truth PAC opposition board of a publicly held savings ballot issue passes. BUSINESS LIVES EDITOR Michelle Darwish, (313) Westin Book Cadillac, Detroit. $45 group also has taken aim at and loan, and has taken his compa- In Michigan, a person with 446-1621 or [email protected] members, $55 guests, $75 nonmem- COPY DESK CHIEF Gary Piatek, (313) 446-0357 Gilbert’s 1981 gaming arrest, ny public and passed through all even a misdemeanor gaming vio- or [email protected] bers. Contact: (313) 963-8547. Web site: which was also raised in 2005 U.S. Securities and Exchange Commis- lation in his or her past would un- ASSISTANT NEWS EDITOR Jeff Johnston, (313) econclub.org. E-mail: jwayland@econ 446-1608 or [email protected] club.org. when he purchased the Cavaliers. sion requirements to do so. dergo “a lot of additional investi- DATA EDITOR Anne Marks, (313) 446-0418 or According to a 2005 Associated He also passed a rigorous back- gation and might not be [email protected] WEB GENERAL MANAGER Alan Baker, (313) 446- Should I Start My Own Business? 8:30- Press report, Gilbert was arrested ground check by the National Bas- considered suitable” by the Michi- 0416 or [email protected] 11 a.m. SCORE. Learn what it takes to with three other Michigan State ketball Association in 2005, she said. gan Gaming Control Board, said its WEB EDITOR Christine Lasek, (313) 446-0473, start and manage a business, why University students on charges of “Mr. Gilbert does not believe executive director Rick Kalm. [email protected] EDITORIAL SUPPORT Robertta Reiff (313) 446- some businesses fail while others suc- operating a bookmaking ring. He that there is any merit to this However, he said each case is 0419, YahNica Crawford, (313) 446-0329 ceed, and what personal skills are re- was accused of a felony charge, matter that was resolved nearly different and emphasized he is NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 quired to start a business. Southfield was fined and given three years of three decades ago, and believes not familiar with Gilbert’s situa- Public Library. $10. Contact: (313) 226- probation. After completing the that this will not in any way hin- tion. REPORTERS 7947. Web site: www.scoredetroit.org. Ryan Beene: Covers auto suppliers, steel, higher E-mail: [email protected]. sentence, the felony was dropped. der his ability to effectively own Daniel Duggan: (313) 446-0414, education and Livingston and Washtenaw Kulczycki points out that since and operate a casino in Ohio if Is- [email protected] counties. (313) 446-0315 or [email protected] Daniel Duggan: Covers retail, real estate and hospitality. (313) 446-0414 or [email protected] WEDNESDAY Jay Greene: Covers health care, insurance and the environment. (313) 446-0325 or OCT. 28 [email protected]. Chad Halcom: Covers law, non-automotive Business InSight 2009. 7:30 a.m.-3:30 DPS deals: manufacturing, defense contracting and Oakland p.m. Detroit Regional Chamber; Blue Firms defend profits and Macomb counties. (313) 446-6796 or Cross Blue Shield Blue Care Network [email protected]. of Michigan; Hennessey Capital. With ■ From Page 3 Tom Henderson: Covers banking, finance, Keith Farrazzi, author, Who’s Got Your technology and biotechnology. (313) 446-0337 or property was sold to American Ea- signed, said he confronted the [email protected]. Back; Mary Ellen Sheets, founder, Two Nancy Kaffer: Covers small business, the city of Men and a Truck; and Marianne gle Properties — of which Com- Farbman Group four years ago Detroit, Wayne County government. (313) 446- O’Brien Markowitz, Midwest regional merce Township resident Cor- I said to them, and attempted to renegotiate 0412 or [email protected]. administrator, U.S. Small Business nelis Arens is managing member “ some of the deals with Detroit Bill Shea: Covers media, advertising and Administration. The Henry Ford, marketing, entertainment, the business of sports, — for $175,000 on Feb. 28, 2002. ‘This was not a clean schools in light of the Fisher and transportation. (313) 446-1626 or Dearborn. $45 chamber members, $55 American Eagle then sold it to Building sale. [email protected]. basic and associate level members, $70 deal and everyone Nathan Skid: Multimedia reporter. Also covers the nonmembers. Contact: (866) 627-5463. Farbman for $420,000 for a 140 “I said to them, ‘This was not a food industry. (313) 446-1654, [email protected]. Web site: www.detroitchamber.com. percent profit. Farbman sold it clean deal and everyone knows Sherri Begin Welch: Covers nonprofits and the same day to ISI for $483,000. knows it.’ it,’ ” he said, adding that no rene- services. (313) 446-1694 or [email protected] Also that day, it was sold by ISI to ” gotiation was established. LANSING BUREAU Mark Schrupp, Detroit Public Schools Amy Lane: Covers business issues at the Capitol, DPS for $508,200. Layne said Schrupp was not telecommunications and utilities. (517) 371- THURSDAY Ⅲ 6150 Second Ave.: Jointly correct in stating that the Farb- 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. OCT. 29 owned by suburban investors sold land,” he said. man Group was representing the Margaret and Allen Campbell and school district when the Fisher ADVERTISING Crain’s 40 Under 40. 5-10 p.m. Honig- George and Jean Chirillo, the Building deal was signed. ADVERTISING DIRECTOR Marla Downs, (313) man Miller Schwartz and Cohn; Bre- property was sold on June 28, Fisher Building “The company did not act as 446-6032 or [email protected] itling; Plante Moran Cresa; WDET SALES INQUIRIES: (313) 446-6052; FAX (313) 101.9 FM; and others. A salute to the 2002, to Farbman for $185,500. Six The focus of Bobb’s hearing broker for Detroit Public Schools 393-0997 achievements of the 2009 class of 40 months later, it was sold to De- on Thursday was largely on the on the sale of the Fisher Building ADVERTISING SALES Jeff Anderson, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, under 40. Big Rock, Birmingham. $60, troit Public Schools for a 106 per- DPS move into the Fisher Build- condo,” he said. Kimberly Ronan, Dale Smolinski $50 each for groups of 10 or more. Con- cent profit at $381,282. ing. He also said the build-out cost CLASSIFIED SALES (313)-446-0351 tact: (313) 446-0300. Web site: Ⅲ 2520 Grand River Ave.: Pur- The deal was criticized by was based on the state-of-the-art MARKETING MANAGER Irma Clark www.crainsdetroit.com/events. EVENTS MANAGER Nicole LaPointe chased by “R. Williams” for Mark Schrupp, currently the ex- central data center that powers MARKETING ARTIST Sylvia Kolaski $60,000, the property was trans- ecutive director of DPS’ office of much of DPS’ IT needs. SALES SUPPORT Suzanne Janik, YahNica Crawford ferred to Michael Williams who physical plant operations and “The build-out was done to DPS CIRCULATION Candice Yopp, Manager. MARKETING COORDINATOR Kim Winkler COMING EVENTS sold it at an 817 percent profit to construction; he was also assis- specifications, was competitively PRODUCTION MANAGER Wendy Kobylarz Detroit Economic Club. 11:30 a.m.-1:30 Farbman for $550,000 on June 13, tant general counsel for the dis- bid, and was reviewed and ap- PRODUCTION SUPERVISOR Larry Williams, p.m. Nov. 2. With Joseph Welch, chair- 2002. Farbman sold it to ISI for trict from 2002 to 2005. proved by DPS Bond consultants (313) 446-0450 man, president and CEO, ITC Hold- $632,500 that day for a 15 percent Farbman Group inked the deal and construction experts,” Layne CUSTOMER SERVICE ings Corp. Detroit Marriott. $45 DEC profit, and it was then sold at a to sell five floors to DPS as an of- said. MAIN NUMBER: Call (888) 909-9111 or write members, $55 guests, $75 nonmem- [email protected] 5 percent markup to the school fice condo for $24.9 million along SUBSCRIPTIONS $59 one year, $98 two years. bers. Contact: (313) 963-8547. Web site: Out of state, $79 one year, $138 for two years. econclub.org. E-mail: jwayland@econ district for $665,000. with $17 million in build-out con- Outside U.S.A., add $48 per year to out-of-state During the deals, ISI used Farb- struction to be performed by Hunt- Warren Street warehouse rate for surface mail. Call (313) 446-0450 or club.org. (888) 909-9111. man as a broker and marked up ington Construction Co., a division Another real estate deal being SINGLE COPIES: (888) 909-9111. Crain’s Business Over Breakfast: The the land sales as a brokerage com- of the Farbman Group. examined by DPS is the district’s REPRINTS: (800) 290-5460, ext. 125; (717) 399- 1900, ext. 125; or ashley.zander@theygsgroup Creative Corridor Project. 7:30-9:30 mission, said Mort Taubman, a It was reported in 2001 that warehouse at 1425 E. Warren. .com. a.m. Nov. 3. Crain’s Detroit Business; partner with Washington, D.C.- Farbman bought both the Fisher The property started as a facili- TO FIND A DATE A STORY WAS PUBLISHED: MACPA; others. With Elijah Kafer, (313) 446-0367 or e-mail [email protected]. based Leser, Hunter, Taubman and Building and the Albert Kahn ty used by Thorn Apple Valley under founder, Catalyst Studios; Sharon Vasquez, dean, College of Fine, Per- Taubman L.L.C., which has repre- Building across the street for a 1998 mortgage for $170 million. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY forming and Communications Arts, sented ISI for many years. $31 million. On Aug. 22, 2000, under Chap- CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain Wayne State University; Sue Mosey, Taubman said ISI’s founder, A source with knowledge of the ter 11 bankruptcy protection, the PRESIDENT Rance Crain president, University Cultural Center Earl Jenkins, was eager to ex- Fisher Building’s financial infor- property was sold to Russell War- SECRETARY Merrilee Crain Association; others. Doubletree Guest pand the company to his home- mation said that in 2003, rent at ren L.L.C., an entity formed by TREASURER Mary Kay Crain Suites Fort Shelby, Detroit. $35. Regis- Executive Vice President/Operations tration deadline: Oct. 30. Contact: town of Detroit. As a minority- the building was $18 per square David Farbman. A court order William A. Morrow owned business, he said, it was foot and parking was $75 per states the property was sold to Group Vice President/Technology, (313) 446-0300. Web site: www.crains Manufacturing, Circulation detroit.com/events. advantageous for the school dis- space per month. Farbman for $1.13 million in a Robert C. Adams trict to have such a firm interact- On a 140,000-square-foot lease, competitive-bid liquidation sale. Vice President/Production & Manufacturing Dave Kamis Women’s Business Enterprise Certifi- ing with local residents. the annual lease cost would be In May 2002, Russell Warren Corporate Circulation/Audience Development cation Orientation. 9-11 a.m. Nov. 4. Even given the markups, he $3.16 million for parking and L.L.C. took out an $8.5 million Director Kathy Henry Michigan Women’s Business Council. said the firm lost money on the rent. A typical 10-year lease construction loan to build out the Learn about the benefits and process G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) of becoming a Women’s Business En- Detroit schools deals. would cost, in the end, $31.6 mil- property for DPS. The completed “There was a lot of gumshoe lion. building was sold to DPS for EDITORIAL & BUSINESS OFFICES: terprise. Oakland County Executive 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Office Building, Waterford Township. work done by everyone involved “They are seven years into $11.9 million on April 24, 2003. 446-6000 $25. Contact: (248) 858-0783. Web site: in that deal,” he said. “We had a their lease, and they have spent On the warehouse deal, like the Cable address: TWX 248-221-5122 AUTNEW DET www.oakgov.com. E-mail: CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 lot of properties to monitor. A lot $22 million, so they are almost other deals, Layne pointed to the is published weekly, except for the first week of [email protected]. July, the fifth week of August, the fourth week of of work to do. ahead, and they own the space,” fact that the school district re- November, the third week of December and a “In the end, it wasn’t a success- said the source, who worried viewed all the costs. special issue the fourth week of August by Crain Aerotropolis. 11:30 a.m.-1:30 p.m. Nov. Communications Inc. at 1155 Gratiot Ave., Detroit ful venture for us. The costs were about being called into Bobb’s “The construction costs were MI 48207-2732. Periodicals postage paid at Detroit, 4. Detroit chapter of Commercial Real MI and additional mailing offices. POSTMASTER: Estate Women, others. With Jim Beck- more than we anticipated.” hearings. reviewed and approved by De- Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box er, managing director, Jones Lang Layne said the deal was typical The source added that the troit Public Schools bond consul- 07925, Detroit, MI 48207-9732. GST # LaSalle; and Wayne County Executive for assembling large parcels of $17 million build-out would have tants,” he said. 136760444. Printed in U.S.A. Robert Ficano. Dearborn Country Entire contents copyright 2009 by Crain land. been spent regardless of whether Daniel Duggan: (313) 446-0414, Communications Inc. All rights reserved. Club, Dearborn. $45; $55 after Oct. 30. “As real estate developers of- the deal was a sale or lease. [email protected] Reproduction or use of editorial content in any Contact: (785) 832-1808. Web site: manner without permission is strictly prohibited. www.crewdetroit.org. E-mail: crewde ten do, (Detroit Property Acquisi- Schrupp, who did not review Ryan Beene contributed to this [email protected]. tions) optioned, assembled and the Fisher deal prior to it being report. 20091026-NEWS--0034-NAT-CCI-CD_-- 10/23/2009 6:44 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 26, 2009 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 17-23

pected to converge on the ing agency, revised the out- raised by 11 state compa- Hyatt Regency Dearborn this Hot startup look to negative from stable nies in the first quarter. week for the fifth annual for Blue Cross Blue Shield of Ⅲ Detroit City Council on Thousands Youmacon convention, said Michigan as the insurer Tuesday turned down a set- event organizer Morgan HandyLab sold faces mounting losses in tlement with the Greektown Kollin, owner of Troy-based the individual health insur- Casino Hotel that would Youmacon Enterprises. to N.J. company ance market. have allowed the casino to friend Pure The event, which runs A.M. Best, however, af- roll back its tax level and from Oct. 29 to Nov. 1, fea- firmed the financial also denied the restructur- tures contests, panels with nn Arbor-based strength rating of “A-” and ing plan for the casino’s voice actors and a masquer- HandyLab Inc., one of issuer credit rating of “a-” exit from bankruptcy. On A Michigan’s top- ade ball on Halloween. for Blue Cross and its affili- Monday, Novi-based casino Michigan Offbeat offerings include fundraising startup firms ated Blue Care Network, the investor Tom Celani with- interactive live-action ren- of the decade, making $46 company’s HMO. drew his plan to acquire s the drumbeat con- eye, largemouth and small- ditions of the “Mario Party” million, was sold to New Ⅲ Health Alliance Plan in Greektown through bank- tinues to find new mouth bass, and lake stur- series of video games and Jersey-based Becton, Dickin- Detroit is offering several ruptcy court. A state funding for geon. The $100,000 habitat is shogi, a Japanese variant of son & Co., a medical tech- new plans for businesses Ⅲ The Wayne State Univer- Michigan tourism promo- in the Trenton Channel of chess. nology firm. The deal is ex- with two to 50 employees. sity School of Business an- tion, there’s more evidence the Detroit River. The river Similar conventions are pected to close in the first They include a provision nounced that its Adams that the Pure Michigan cam- and Lake Erie are well held around the country for quarter of 2010. Financial that offers a refund for the Entrepreneurship Fellow- paign has a lot of fans. known as walleye hubs; the devotees of the culture sur- terms were not released. first co-pay to encourage ship program will help Ford Travel Michigan, the state’s fish habitat is part of many rounding Japanese anima- covered employees and Global Technologies L.L.C. tourism-marketing agency, efforts by riverfront stake- tion. The largest is the Ani- ON THE MOVE their dependents to see commercialize Ford Motor said last week that its Pure holders to promote conser- me Expo in Los Angeles, their primary care physi- Co.’s extensive patent port- Michigan Facebook page has vation, recreation and which attracted more than Ⅲ Jennifer Groomes, exec- cians. folio. made Michigan one of the tourism. 44,000 people this summer. utive director of the Greater Ⅲ Eastern Michigan Univer- top states for fans on the so- About 4,500 people attend- Romeo-Washington Chamber sity has broken ground for a of Commerce, will resign COMPANY NEWS cial media outlet, with the Seek a pleasant peninsula? ed last year’s Youmacon, $3.9 million indoor sports page recently passing the held at the same location. her position effective Oct. Ⅲ DTE Energy Co. (NYSE: practice facility for use by 20,000 mark. It might be on your purse For more information, 30 and close her Romeo DTE) said it expects 2009 its teams and the communi- The Pure Michigan cam- see www.youmacon.com. wedding and event consul- operating earnings to be ty, the AP reported. Jenna Kator loves three paign also has racked up an- tant business, Everything $523 million to $558 million, EMU also is planning an things: Michigan, handbags other award, this time from Events L.L.C., to relocate to up from a previous esti- estimated $80 million pro- and entrepreneurship. Af- the Michigan Golf Course Own- BITS & PIECES Hawaii. Membership direc- mate of $445 million to $505 ject that would renovate ter she was laid off from ers Association as an exam- Ⅲ tor Kelley Stephens will be- million. 87,500 square feet and build her advertising job (on The honorees at the ple of “Travel Michigan’s come interim director. On Wednesday, DTE’s an additional 170,000 an automotive-related Nov. 6 Walsh College Lead- unequalled commitment Ⅲ Douglass Diggs, former chairman and CEO, Anthony square feet on the east side account) in Jan- ership Awards Dinner are: to promoting travel to Detroit Earley Jr., said the nation’s of campus for five academ- uary, she Beth Chappell, president and our state and especial- planning electric utilities are ramp- ic units: art; communica- found a way CEO of the Detroit Econom- ly the excellent cam- and de- ing up efforts to work to- tions, media and theater to combine ic Club; Daniel Kelly, chair- paign featuring golf.” velop- gether to create the infra- arts; music and dance; engi- her pas- man of the board of Rose And a new poll of ment di- structure to support plug-in neering technology; and sions. Hill Center and retired vice Michigan residents, rector, electric vehicles. tech studies. Kator launched the chairman, Deloitte & Touche commissioned by the was ap- Ⅲ The New York-based The project is called the Livonia-based jenna kator L.L.P.; Richard DiBartolomeo, Michigan Lodging and Tourism pointed Northern Group lost control Integrated Arts, Communica- collection this summer. principal in charge, Association and conducted as the of the Cadillac Tower in De- tion and Applied Technology by Lansing-based Epic-MRA Each handbag design is Rehmann Group; N. Patricia first head troit on Monday when U.S. Village. Corp., has found 65 percent named after a Michigan city Kurtz, Walsh College trustee; of the District Judge Robert Cle- Ⅲ Glenn Blanton of West Diggs of residents surveyed be- — represented in the cur- Todd Hohauser, president city’s land appointed Michael Kalil, Bloomfield Township, who lieve Pure Michigan is an rent collection Adrian, and COO, Harvey Hohauser & new Land Bank Authority. COO for the Southfield- ran Cobo Center under ex- effective way to help im- Birmingham, Caledonia Associates. To register, see Ⅲ Bill Martin, University of based Farbman Group, as the Mayor Kwame Kilpatrick, prove Michigan’s economy. and Troy. Styles retail for www.secure.walshcollege. Michigan athletic director, financial monitor for the has received a one-year $79 or less. edu/leadershipawards. will retire on Sept. 4, 2010, 348,000-square-foot office prison sentence after plead- BASF project may lead to Her Web site went live Ⅲ The Association of Zoos the day of the first football building. ing guilty to obstruction of June 30, but the bulk of the and Aquariums has awarded game of the 2010 season and justice for taking a $15,000 net gains in Detroit River collection’s $20,000 in sales the 2009 North American the day the university will bribe from Cobo contractor rededicate Michigan Stadi- were made in September, Conservation Award to the OTHER NEWS Karl Kado, who also plead- There’s something fishy um following its massive Kator said. Detroit Zoo for its coordina- Ⅲ The state of Michi- ed guilty, the AP reported. at BASF Corp.’s Riverview renovation project. Ⅲ tion of a program to help gan’s Land Bank Fast Track Michigan Radio, the property — as in walleye. Ⅲ Mario Morrow, acting Authority plans to buy for public radio service of the The company, which has Japanese-animation fans save the endangered Great principal at Detroit’s Mum- $3.3 million the vacant Far- University of Michigan, said it substantial Downriver op- Lakes Piping Plover. This ford High School, has re- to hold court at Hyatt well Building in Detroit as surpassed its fall fundrais- erations, has completed year, 71 nesting pairs of the signed from his post and part of what could become ing goal of $712,000 by rais- construction on nearly one More than 5,000 fans of shorebirds were counted in will return to his job today a widespread redevelop- ing more than $850,000. acre of fish habitat for wall- Japanese animation are ex- the Great Lakes region. as director of communica- Ⅲ ment of the Capitol Park The Detroit Regional tions for the state Depart- district, the Detroit Free Chamber will hold its annu- ment of Energy, Labor and al small-business confer- Press reported. Economic Growth, the Detroit ence Wednesday from 7:30 Ⅲ A plan announced in Free Press reported. A re- a.m. to 3:30 p.m. at The Henry 2007 to redevelop part of placement was not immedi- Ford in Dearborn, offering Selfridge Air National Guard ately named. speed networking, panel Base for a hotel, housing discussions and a town hall and industrial buildings BEST FROM THE BLOGS meeting. Visit detroitcham- has been scrapped because READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS HEALTH CARE ber.com/insight. the base’s military mission Ⅲ Henry Ford Health Sys- has been expanded, The De- Communication saves money Talk about a bad economy tem, Detroit Medical Center’s troit News reported. OBITUARIES Sinai-Grace Hospital and Ⅲ Nine state companies Imagine freeing up The economy, how Nephron Associates, a South- raised $36.1 million of ven- Ⅲ Artie Fields, who owned billions“ in health care bad“ is it? The economy field-based physician ture capital in the third Artie Fields Productions in dollars just by getting is so bad ... that I got a group, have agreed to build quarter ended Sept. 30, led Southfield and composed doctors to pre-declined credit card the $1.8 million Northland many memorable commer- communicate more in the mail. by Farmington Hills-based Park Dialysis Center in cial jingles, died Oct. 14. He humanely with their Critical Signal Technologies patients. ” Southfield. The center will Inc., which raised $11.1 mil- was 87. be managed and staffed by lion, and Ann Arbor-based Ⅲ Soupy Sales, whose TV ” Greenfield Health Systems, a NanoBio Corp., which re- show began airing in De- division of Henry Ford, and ceived $10 million. troit in 1953 and who took is expected to open in the That compares with $25.8 20,000 pies to the face over Managing Editor Andy Chapelle’s blog on business in Reporter Bill Shea’s blog on sports, the media, summer. million raised by four state 5,000 live TV appearances the Ann Arbor area can be found at transportation and marketing can be found across a half-century, died www.crainsdetroit.com/chapelle at www.crainsdetroit.com/shea Ⅲ A.M. Best Co., an Old- companies in the second wick, N.J.-based credit rat- quarter and $19.9 million Thursday. He was 83. DBpageAD.qxd 10/12/2009 11:12 AM Page 1

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