DETROIT BUSINESS MAIN 06-19-06 A 1 CDB 6/16/2006 6:59 PM Page 1

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http://www.crainsdetroit.com Vol. 22, No. 25 JUNE 19 – 25, 2006 $1.50 a copy; $59 a year

©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved THIS JUST IN Masonic Temple may Renovate Joe or build rink? get partner, manager The site of Tiger Stadium has been The Masonic Temple Asso- Wings likely to decide by year’s end, Ilitch says mentioned as a possible site for a ciation is in talks with a lo- new stadium, but plans announced BY BRENT SNAVELY ing company for the Detroit Athletic Club June 9. cal group of private in- by the city on Friday have elimi- AND ROBERT ANKENY the Red Wings, Ilitch also addressed the future vestors who are interested nated that from discussion. (See CRAIN’S DETROIT BUSINESS said he’d like to of the Red Wings in a meeting with in either becoming a part- story, Page 5.) make a decision Crain’s in May. ner or manager of the com- Another much-discussed site is With the Stanley Cup finals by year-end on “We’re going down two paths at plex, said Bill Betz, the as- an area of west of Woodward Av- drawing to a close, the owners of whether renova- once,” Ilitch said in May. “We’re sociation’s president. enue behind the Fox Theatre, where the Detroit Red Wings have their at- tion or building looking at the rehabilitation of the “The developers or the the Ilitches already own land. tention fixed on another clock that a new stadium Joe and at the same time we are investors at this time is winding down — the lease at Joe is the best op- looking at a new arena and we are Ilitch downplayed that possibili- would like to remain Louis Arena. tion. talking to the city about that.” ty, saying, “I don’t think that land anonymous,” Betz said. The time remaining: Three Ilitch Ilitch con- George Jackson, president of the behind the Fox even makes sense “But I can tell you this: years. firmed that the Red Wings are Detroit Economic Growth Corp. said at this point.” (See story, Page 33.) They are very well-heeled, And Chris Ilitch, president and evaluating their options following that it is up to the Ilitches to decide very well-known in the CEO of Ilitch Holdings Inc., the hold- a speech to the Executives Club at which option they wish to pursue. See Wings, Page 33 community.” Betz anticipates that the investment group will sign a letter spelling out a due Greg Goetchius, diligence process within global noise, the next week or so. vibration and Suppliers The Masonic Temple, at harshness director 500 Temple Ave. in Detroit, for Material Sciences Corp., includes two theaters, mul- stands in a tiple ballrooms, a drill hall chamber with fuel up to and a 14-story office tower. sound-deadening The association began wedges on all looking for a real estate surfaces and management partner earli- below the grated fill demand er this year in the wake of floor. Material the departure of the build- Sciences Corp. is See This Just In, Page 2 one of three companies that have collaborated for ethanol to build the LAST CALL FOR Application BY ANJALI FLUKER Research Center CRAIN’S DETROIT BUSINESS HEALTH CARE HEROES where the chamber is located. RKA Petroleum Cos. anticipated a Crain’s Detroit Business is surge in demand for the renewable seeking nominations for Health Care Heroes, a special section fuel ethanol in the coming year, so Sept 4. Winners will be named the fuel distributor devoted more in the following categories: than $1.5 million to expand capaci- ■ Corporate achievement in ty at its terminal in Romulus. At least four more ethanol pro- health care: Honors a company REBECCA COOK that has created an innovative duction plants are set to open in health benefits plan or that has Michigan by mid-2007, which solved a problem in health care means supply could catch up to the administration. national demand for ethanol. That ■ Advancements in health would make E85 — a blend of 85 care: Honors a company or A quiet collaboration percent ethanol and 15 percent individual responsible for a gasoline usable only in cars with discovery or for development of and other products they test in the flexible-fuel engines — more readi- a new procedure, device or BY SHEENA HARRISON service that can save lives or Joint effort CRAIN’S DETROIT BUSINESS chambers. ly available and cost-effective for improve quality of life. The center also allows the compa- service-station retailers in South- The sound-absorbing chambers at ■ Physician: Honors a nies to collaborate on projects and east Michigan. One ethanol plant, physician whose performance is brings noise- the Application Research Center in share customers, something they be- Michigan Ethanol L.L.C., already op- considered exemplary. Canton Township are so quiet, the si- lieve will turn into innovations and erates in Caro, east of Saginaw. ■ Allied health: Honors an lence itself is almost deafening. increased sales for each of the firms. The increase in production is individual from nursing or allied testing center Three companies — Material Sci- “You have to have great products partly what drove RKA to build a health fields deemed exemplary ences Corp., Brüel & Kjær and Link Engi- and a great customer base,” said Gre- second tank to hold more than 2 by patients and peers. to Canton neering Co. — have spent about $15 gory Goetchius, global NVH director million gallons of ethanol, which A panel of health care judges million to develop the 65,000-square- for MSC. “This three-way facilitates will bring its storage capacity to will choose the winners. that.” nearly 4 million gallons by next Nomination forms are available foot center, which is scheduled to The center is owned by MSC, which month, said RKA Vice President at www.crainsdetroit.com. Click Township open Tuesday. They say that sort of is based in Elk Grove, Ill., and report- Keith Albertie. “Health Care Heroes” under silence helps them to reduce noise, vi- About $200,000 also went toward Crain Events. The deadline is bration and harshness (NVH) in auto- ed sales of $286.6 million globally in June 21. motive components, appliance parts See ARC, Page 30 See Ethanol, Page 32

Focus CRAINRAIN’SS SMALLMALL BUSINESSUSINESS AWARDSWARDS NEWSPAPER C ’ S B A Seven companies are honored, Page 11; List of largest SBA loan providers, Page 15. DETROIT BUSINESS MAIN 06-19-06 A 2 CDB 6/16/2006 6:55 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 19, 2006

S&P: Suppliers deteriorating the company’s former headquar- 80 percent petroleum diesel. The Verizon to hire 130 THIS JUST IN ters in Troy. county purchases about 700,000 The financial outlook for North The works, valued at more gallons of diesel fuel each year. Verizon Wireless plans to hire ■ From Page 1 American auto suppliers during than $1 million, include a 15th Biodiesel is mostly produced 130 people in Southeast Michigan the second half of the year is dete- century Chinese Ming Dynasty from soybeans, but can also be by the end of this summer, in re- ing’s two largest tenants, groups riorating, ratings agency Stan- watercolor on silk and a Picasso made from oils such as used sponse to current and projected affiliated with the Masons, which dard & Poor’s said Friday. The tapestry. The art will be sold at restaurant grease. Biodiesel will business growth. The company is moved out. New York City agency blamed six showings a month through run in nearly any diesel engine seeking job applicants for 100 po- Betz said the association has continuing production cuts by September, with each month rep- without any engine modifica- sitions at the company’s South- run the temple since it opened in General Motors Corp. and Ford Mo- resenting a different genre: oils tions and burns cleaner than reg- field call center and 30 positions 1926 but said the association does tor Co. — particularly for light and watercolors, posters and ular diesel fuel. in retail locations in Wayne, Oak- not have expertise in real estate trucks and SUVs. prints, photography, and tapes- — Anjali Fluker land and Macomb counties. management. “Although the numerous busi- try, sculptures and executive fur- Job openings include customer Betz also said neither the build- ness challenges facing auto sup- niture. service representatives and su- ing nor the Masonic Temple Theatre pliers have neither intensified Kmart Holding Corp. acquired DTE may buy CMS nuke plant pervisors, assistant store man- are in imminent danger of clos- nor diminished during the past Sears, Roebuck and Co. in March As CMS Energy Corp. nears the agers, and retail sales representa- few months, most suppliers have ing. “Wicked” finished a more 2005. Kmart, now a subsidiary of close of bidding for its west tives and supervisors. not been able to overcome these than two-week run in the theater Hoffman Estates, Ill.-based Sears Michigan nuclear power plant, — Amy Lane challenges,” the report said. Sunday. Holdings Corp., sold Kmart’s for- it’s possible one offer could come “Companies in the sector are in- — Brent Snavely mer headquarters to Washing- from Detroit’s DTE Energy Co. creasingly vulnerable to the still- Macomb County to add planners ton-based Madison Marquette Real- DTE Energy is evaluating fragile state of the U.S. auto in- UM to take expansion bids ty Services L.P. in December. whether to submit a bid for the The Macomb County Board of dustry.” The University of Michigan on — Sheena Harrison Consumers Energy Co. Palisades Commissioners last week approved S&P said GM is planning to cut Friday said it would begin the bid plant, in its overall examination a request to set aside $285,000 for production 8 percent in the sec- process for the renovation and of options to meet customers’ fu- two new senior planners in the ond half of 2006 and Ford plans to Wayne County to use biodiesel 53,000-square-foot expansion of ture energy needs. county department of planning cut by 3 percent. As of June 14, The Wayne County Department of Alumni Memorial Hall, home to the “We’re considering both nu- and economic development. S&P has negative ratings or out- Public Services fleet has converted UM Museum of Art. clear and coal technology. If all the The money will be used for looks on 23 of the 33 auto suppli- to using the renewable fuel The museum said it has pieces were in place for making salaries, benefits and expenses ers it evaluates — none had posi- biodiesel, which could save the reached its $35.4 million purchasing that plant a prudent for the planners, who will be re- tive outlooks. county up to $21,000 a year, it was sponsible for attracting new busi- fundraising goal for the project, Only three S&P-rated suppliers announced Friday. decision, then we would be inter- which will include a new audito- carry investment-grade ratings: Romulus-based fuel distributor ested,” senior media-relations rep- nesses and jobs to the area. rium, expanded gallery, storage Magna International Inc., BorgWarn- RKA Petroleum Cos. secured a mul- resentative Scott Simons said. Salary for the positions ranges and gift-shop space, classrooms er Inc. and Johnson Controls Inc. tiyear deal to supply the county Bids are due June 29. $51,399 to $64,248. and hands-on work area. — Crain News Service with biodiesel for 300 diesel — Amy Lane — Anjali Fluker UM said it hopes to begin con- trucks, said Matthew Schenk, as- struction late this summer. sistant county executive. CORRECTIONS The museum will move to a Kmart selling off art, furniture Wayne County is expected to temporary location, adjacent to Kmart on Friday began auction- save 2 to 3 cents a gallon over reg- ■ The location of Sani-Vac Services Inc. was incorrect on Page M-28 of its central campus area June 25. ing and selling more than 1,000 ular diesel by using a B20 blend, the June 5 issue. The company is based in Warren. Also on the same — Sherri Begin pieces of fine art and furniture at which is 20 percent biodiesel and page, the age of John Line is incorrect. He is 50.

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June 19, 2006 CRAIN’S DETROIT BUSINESS Page 3 Xoran Tech CRAIN’S Lawmakers threaten INDEX PSC push: State agency wins break looks for authority over utility mergers. but can’t border-study funds Page 4.

Move would put focus back on BORDER PLANS catch one A number of proposals have been Ambassador Bridge twinning pitched as solutions to future gridlock at the border. The most Small Biz Solutions: secretary for Gov. Jennifer often mentioned include: Looking for government State won’t let it sell BY MICHELLE MARTINEZ startup money? Don’t CRAIN’S DETROIT BUSINESS Granholm, said the governor be- ■ A Detroit International Bridge Co. hold your breath. lieves the study should be fund- plan to build a $400 million twin, Page 18. scanners here State lawmaker concerns over ed, but continues to work with six-lane span next to the existing public spending on the next bor- the Legislature on the language. Ambassador Bridge with private These organizations appear in this der crossing have pushed a De- dollars. week’s Crain’s Detroit Business: BY TOM HENDERSON “Safe and efficient movement troit International Bridge Co. pro- across the border is our overrid- ■ A $600 million plan by the Detroit CRAIN’S DETROIT BUSINESS Airfoil Public Relations ...... 12 posal to build a second bridge ing concern,” Watson said. River Tunnel Partnership to convert Alloy Metals International Inc. . . . . 28 The state likes Ann Arbor-based Xoran next to the Ambassador Bridge About $21.3 million already has a 95-year-old rail tunnel under the Ansara Restaurant Group ...... 3 Technologies Inc. so much that the Michigan back into the forefront. been directed to the study, includ- river into a truck route. The Artpack Services Inc...... 13 partnership is also pitching its Atlas Oil Co...... 32 Economic Growth Authority board awarded Budget amendments to stop ing about $4.26 million from the Bieri Co...... 5 the company a tax credit of more than $7.1 state funding of a binational state. If passed, the amendments tunnel as a possible passenger Big Boy Restaurants ...... 32 million to help make its compact CT scan- study on the next border crossing would save the state as much as route to the Southeast Michigan Bob Thibodeau Ford ...... 33 ners. have been approved as part of $2.4 million more from the study’s Council of Governments. Brüel & Kjær ...... 1 ■ CB Richard Ellis ...... 5 But the company can’t sell them in larger budget bills and await fi- next round of financing. Five different scenarios from the CMS Energy Corp...... 4 Michigan. nalization in House-Senate con- The study — conducted by the Detroit River International Crossing Coalition for a Detroit Land Bank . . 25 To date, the Michigan Department of Com- Michigan Department of Transporta- study for a river crossing located in Cobo Center ...... 33 ference committees. The amend- Collins & Aikman Corp...... 25 munity Health has declined to provide cer- ments were introduced by State tion and other state, federal and the area just upriver of Zug Island to just south of the Ambassador Corktown Development Corp...... 5 tificates-of-need for the compact computed Sen. Jud Gilbert, R-Algonac, and provincial agencies in the U.S. Crosswinds Communities Inc...... 5 Bridge. A final decision was tomography, or CT, scanners, which are state Rep. Philip LaJoy, R-Can- and Canada — was formed to Detroit Econ. Growth Corp. . . . 1, 5, 29 scheduled to be made by mid- Detroit International Bridge Co. . . . . 3 used mostly in doctors’ and dentists’ of- come up with the agencies’ ton Township. 2007. Detroit Red Wings ...... 1 fices. Heidi Watson, deputy press See Bridge, Page 31 Detroit River Tunnel Partnership . . . . 3 “It’s pretty odd circumstances,” said DTE Energy Co...... 4 Edward Lowe Foundation ...... 6 Pedja Sukovic, who co-founded Xoran in Engineered Plastic Products Inc. . . 25 2001 and is its CEO and president. He said EPrize L.L.C...... 17 he has been meeting with health officials First Public Corp...... 33 for about six months to try to get approval Ford Field ...... 33 Franco Public Relations ...... 12 to market the scanners in Michigan, and General Motors Corp...... 32 has another meeting scheduled for GrowthEconomics Inc...... 6 Wednesday. HOK Sport ...... 33 Husky L.L.C...... 13 “It looks like it’s going to be a long, ar- IA Inc...... 17 Taking flight Ilitch Holdings Inc...... 1 duous process. It’s very slow and painful,” Sukovic said. Inside Michigan Politics ...... 28 When reached late Friday by Crain’s, IVC Healthcare Staffing ...... 14 Ansara soars with Jaffe Raitt Heuer & Weiss ...... 28 T.J. Bucholz, the health department’s di- Joe Louis Arena ...... 1 rector of communications, confirmed that Knight Enterprises Inc...... 32 Xoran had been denied certificate-of-need Lawrence Holdings Inc...... 28 Red Robin burgers, Lear Corp...... 25 approval but could not provide further Link Engineering ...... 1 comment. Made in Detroit Inc...... 7 The CON program limits the amount of Material Sciences Corp...... 1 soon to be largest McCann Erickson ...... 6 expensive medical devices that hospitals McVety & Associates ...... 32 and clinics can buy, under the theory that MEDC ...... 6, 18 too many devices might result in unwar- MEGA ...... 3 franchisee Meijer Inc...... 32 ranted procedures in order to pay for Michigan Ethanol L.L.C...... 1 them, or cause economic hardship for Michigan PSC ...... 4 BY BRENT SNAVELY medical institutions. But Sukovic said Michigan State University ...... 32 rules regulating CT scanners were written CRAIN’S DETROIT BUSINESS Michigan Suburbs Alliance ...... 7 NAIAS ...... 33 before his smaller, cheaper devices came For the past eight years Ansara NextEnergy ...... 32 on the market. Restaurant Group has been rapidly Oakwood Business Services ...... 15 “It’s like a law that treats a laptop like a Paxahau Promotions Group ...... 7 spreading its wings across Michigan Plastech Engineered Products Inc. . 25 mainframe,” he said. He said more than as a franchisee of Denver-based Red Red Robin Gourmet Burgers Inc. . . . 3 300 dental scanners have been sold around Robin Gourmet Burgers Inc. RKA Petroleum Cos...... 1 the world, and about 80 of a second line of Rossetti ...... 33 Now, with three additional Red SBAM ...... 6, 11, 17 scanners used primarily to look in sinus Robin restaurants scheduled to open SEMCOG ...... 3 cavities by ear, nose and throat specialists this year, Ansara is poised to be- Skidmore Inc...... 15 have been sold in the U.S., except for Con- come Red Robin’s largest franchisee. Small Business Foundation ...... 6 Snappy Materials L.L.C...... 28 necticut, Virginia and Michigan, which Today Ansara is scheduled to open Travel Michigan ...... 6 restrict their sale. its 17th Red Robin at 3003 Commerce University of Michigan ...... 29 The scanners sell for about $225,000, Crossing Road in Commerce Town- V2Soft Inc...... 16 about one-sixth the cost of full-size scan- Village Green Cos...... 7 ship. The company also plans to open Walsh College ...... 7 ners, he said. The scanners weigh about a Red Robin restaurant in Kentwood Wayne County Land Bank Authority 25 450 pounds and are upright, with a seat for in July and in Holland this fall. Red Xoran Technologies Inc...... 3 the patient. They are small enough to fit Robin (Nasdaq: RRGB) had 172 com- through a standard doorway. BANKRUPTCIES ...... 6 pany-owned and 139 franchised BRIEFLY ...... 7 A third line of scanners for use in oper- restaurants as of March 31. BUSINESS DIARY ...... 22 ating rooms was about to start testing at Ansara Restaurant Group, found- CALENDAR ...... 24 the University of Michigan, Sukovic said, but ed in 1961 by brothers Andrew CAPITOL BRIEFINGS ...... 6 state regulators said CON approval also Ansara Sr. and George Ansara, CHRISTOPHER CRAIN . . . . . 8 would be required for that: “I have to send opened its first Red Robin restau- CLASSIFIED ADS...... 26 the scanners out of the state to test them, rant in 1993 but only operated three EARNINGS ...... 4 to New York University and Northwestern Uni- by 1998. LETTERS ...... 8 OPINION ...... 8 versity.” “When we opened in 1993 it was a “Our job is to run interference, but we OTHER VOICES ...... 9 new concept for us and it took JOHN F. MARTIN PEOPLE ...... 21 can’t just call someone and get a law awhile to understand the concept,” Victor Ansara is the son of one of the founders of the restaurant group, RUMBLINGS...... 34 See Xoran, Page 33 See Ansara, Page 32 Andrew Ansara Sr. WEEK IN REVIEW ...... 34 DETROIT BUSINESS MAIN 06-19-06 A 4 CDB 6/16/2006 5:53 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 19, 2006 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Public Service Commission seeks merger-review authority

BY AMY LANE partners to seek PSC approval. from Lark’s testimony in mid-May CAPITOL CORRESPONDENT The commission would have ac- before the House Energy & Tech- cess to all corporate books, records nology Committee, and written LANSING — State regulators and information it needs to assess comments. are pushing for authority to ap- the transaction. Driving the state interest is the prove or deny Michigan utility Under the bill, the commission federal Energy Policy Act of 2005, mergers and acquisitions, in the would have to deny the proposed which repealed a 70-year-old law wake of 2005 federal action lifting acquisition, transfer of control, or restricting utility combinations. long-standing restrictions on the merger if it finds the deal would The Public Utility Holding Compa- deals. adversely affect customer rates or ny Act of 1935 had generally pro- Under way is a bill that would energy service, or would result in hibited combinations of gas and give the Michigan Public Service customers of the regulated utility electric utilities located in sepa- Commission merger review author- subsidizing nonregulated activi- rate regions, and also barred ity. Michigan is one of three states ties of the new entity. transactions that did not solely in- lacking such power, and both the The PSC could also consider the volve traditional utilities, like a PSC and lawmakers say that’s a effect on competition, impairment bank wanting to buy a utility. The concern at a time when national of a utility’s capital structure, and now-repealed act also required merger and acquisition activity is consistency with public policy and combining electric utilities to be expected to increase. interest. interconnected; for example, a “It is important for Michigan to In addition, the PSC could at- Michigan electric utility could not Do you have be able to weigh in proactively for tach unspecified conditions to pro- purchase a Florida counterpart. Order Takers or the ratepayers, tect the home utility. For example, Now, there can be mergers of ge- if a major utility one condition might be to prohibit ographically remote utilities, and Salespeople? merger or ac- the use of utility revenues or as- nonutility businesses can acquire quisition takes sets as loan collateral for nonutili- utilities, Lark said. The U.S. Securi- There is a difference between place, so that we ty activities, insulating the Michi- ties and Exchange Commission no can validate if gan utility from the risks of a longer has merger oversight, and order taking and selling. Many the transaction organizations thought for a long time holding company or affiliate. while the Federal Energy Regulatory is in the public’s Proos said the bill, which has Commission has a merger review that they had a good sales department. best interest,” not yet been introduced, is in its role, the FERC has indicated that But when the economy slowed they realized they had order takers. said PSC Chair- early stages and he does not envi- it intends to “rely on state commis- man Peter Lark. Are you wondering how to change this? Do you want to know if your Lark sion ultimately giving the PSC “a sions to exercise their own author- For now, full authority to give a yea or nay” ity,” Lark said. current staff is capable of changing and growing sales? Do you know Michigan energy companies are if you have the right salespeople to take your business where to a transaction. Lark said from the PSC’s view- saying little about the prospect. But the Legislature needs to en- point, Michigan regulators you want it to be 1, 5, 10 years from now? Scott Simons, senior media-rela- sure “that the residents, citizens “should have the ability to ap- tions representative at DTE Energy and businesses of Michigan that prove or not approve a merger.” We’re known for our difficult and expensive sales training. It’s not for Co. (NYSE: DTE), said it is “rea- everyone. We teach a proven, powerful selling system that typically utilize the services of companies Greg Moore, legislative assis- sonable for the MPSC to have in our state … are protected first tant to Technology & Energy Com- brings you a 30% sales increase in one year. If you are finally serious some level of authority related to and foremost,” he said. mittee Chairman Mike Nofs, R- about having your best sales year ever, it may be time to call us. reviewing the purchase or sale of Proos is seeking comments from Battle Creek, said committee MPSC-regulated utilities, particu- utilities and other interested par- hearings on the legislation are pos- For more information, or to reserve your place at our next larly as it impacts Michigan ener- ties and said he expects to re-draft sible this summer, once the bill’s complimentary Executive Briefing, please call Rebecca AS gy users and the state’s electrical the bill and introduce a measure final draft is introduced. at (248) 299-9630 HEARD system.” DTE will work with law- ON WWJ that reflects some of the feedback. Amy Lane: (517) 371-5355, makers and the commission “in an Gerry Weinberg & Associates The bill’s initial form originated [email protected] www.gerry weinberg.com effort to achieve the appropriate level of review in these matters,” he said. Jeff Holyfield, director of news STREET TALK and information at Jackson-based CMS Energy Corp. (NYSE: CMS), THIS WEEK’S STOCK TOTALS: 16 GAINERS, 59 LOSERS, 6 UNCHANGED said it’s too early for CMS to com- 6/16 6/9 PERCENT ment on the legislation and the CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE INDUSTRIAL STORAGE / company has not taken a position. An initial draft of a bill spon- 1. Somanetics Corp. $18.97 $15.05 26.05 WAREHOUSE & DISTRIBUTION sored by Rep. John Proos, R-St. 2. Meadowbrook Insurance Group 8.50 7.85 8.28 Joseph, would require merger 3. Asset Acceptance Capital Corp. 19.10 17.97 6.29 Over 500,000 sq.ft. 4. Perceptron Inc. 8.24 8.02 2.74 5. Semco Energy Inc. 5.77 5.62 2.67 Machinery, Dies, Fixtures, Racks, Parts, Etc. 6. NAIC Growth Fund Inc. 8.25 8.05 2.48 10 Truck Docks & On-site Rail Loading 7. TechTeam Global Inc. 9.88 9.74 1.44 8. General Motors Corp. 25.60 25.35 0.99 EARNINGS 9. Oxford Bank Corp. 52.00 51.60 0.78 E Handleman Co. 8.62 8.60 0.23 10. Caraco Pharmaceutical Nasdaq: CPD 6/16 6/9 PERCENT CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE 4th Quarter March 31 2006 2005 Revenue ...... $24,701,008 $17,336,500 1. Champion Enterprises Inc. $9.69 $11.15 -13.09 Net income ...... ($6,538,985) ($4,321,714) North Pointe Holdings Corp. 7.50 8.57 -12.49 Earnings per share ...... ($.25) ($.16) 2. 12 months 3. Energy Conversion Devices Inc. 35.75 39.88 -10.36 Revenue ...... $82,788,918 $64,115,721 4. Lear Corp. 20.89 22.62 -7.65 Net income ...... ($10,423,312) ($2,278,161) 5. Rockwell Medical Technologies 6.18 6.65 -7.07 Earnings per share ...... ($.39) ($.09) 6. ArvinMeritor Inc. 15.46 16.40 -5.73 www.decnow.com Somanetics Corp. Nasdaq: SMTS 7. Syntel Inc. 19.42 20.49 -5.22 Detroit, Michigan / (313) 897-2277 ext. 238 2nd Quarter May 31 2006 2005 8. Rofin-Sinar Technologies Inc. 51.64 54.04 -4.44 Revenue...... $7,394,857 $5,082,746 9. Ramco-Gershenson Properties. 26.24 27.45 -4.41 Email: [email protected] Net income ...... $2,174,452 $890,183 10. American Axle & Mfg. Holdings 15.94 16.63 -4.15 Earnings per share ...... $.15 $.08 ISO 9002 / QS 9000 6 months Source: Bloomberg News. From a list of publicly owned companies with headquarters REGISTERED Revenue ...... $13,148,571 $9,115,363 in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading Net income ...... $3,162,740 $1,454,109 at less than $5 are not included. Earnings per share ...... $.24 $.12 DETROIT BUSINESS MAIN 06-19-06 A 5 CDB 6/16/2006 6:54 PM Page 1

June 19, 2006 CRAIN’S DETROIT BUSINESS Page 5 Developers support plan for retail, homes on stadium site

BY ROBERT ANKENY support substantial new housing Baseball was AND JENNETTE SMITH played on the and retail at the site, said Alexan- CRAIN’S DETROIT BUSINESS site at I’d bring it down der Bieri, leasing representative at Michigan and “ Detroit-based retail real estate Developers as well as communi- Trumbull to a ballfield, consultant Bieri Co. ty and city leaders say that putting from at least Jackson said the plan is flexible shops and homes where Tiger Sta- 1896 until make it a place first, because different developers might dium now stands is the right an- the stadium be selected to work on one or more swer for the corner of Michigan closed after and then people of the four development parcels. and Trumbull. the 1999 season. could see what it Jackson said the field plus Officials on Friday announced a dugouts and perhaps the original plan to have first-floor retail with would look like. Michigan Avenue and Cochrane residential units above on some 4 ” Street corner of old Navin Field, to 5 acres of the outer perimeter of dating to 1912, would be retained. the 9-acre site, while preserving Bernie Glieberman, Crosswinds Communities Inc. Development parcels on four the old ballfield as a public park. sides of the playing field could Detroit Economic Growth Corp. around the country for 4½ years have projects such as restaurants, President George Jackson Jr. said PLANS FOR THE CORNER and nobody wanted the site with a bars and other entertainment the project, costing between $40 The vision: First-floor retail with residential units above on the perimeter of stadium standing,” Kilpatrick said. venues, plus a drug store, grocery million and $70 million, could the 9-acre site. The ballfield would be preserved as a park. He said including residential of- store, dry cleaner, shoe repair and bring between 150 and 300 new Housing units: 150 to 300. ferings in a mixed-use development other neighborhood amenity housing units. Expected project cost: $40 million to $70 million. will help stabilize population as the shops, Martin said. Bernie Glieberman, president Timetable: None set yet, but the city hopes to clear the site by next city tries to attract middle-class res- Some or all of these street-level and CEO of Novi-based Crosswinds summer. idents and grow its tax base. shops are expected to have residen- Communities Inc., said he talked Earlier plans included total de- tial loft condominiums or apart- with city officials three or four No developers have been select- next year, they can start work molition for construction of a ma- ments above, Jackson said, with be- years ago about the idea of keeping ed yet, but the DEGC will issue re- when the site is cleared. jor retail store and a $200 million tween 150 to 300 units possible. the Navin Field portion and tearing quests for proposals for architec- “I’m hoping the project could be rehabilitation within the shell of The preserved playing field is to down the balance to promote mar- tural, site and salvage analysis in substantially completed by spring the stadium to include luxury con- be maintained as a public park by ket-driven development around it. the next two weeks, said Peter Zeil- of 2009,” he said. dos and a health club. a conservancy created by the Cork- “I’d bring it down to a ballfield, er, DEGC economic development Mayor Kwame Kilpatrick said Russell Barnett, a broker at CB town Development Corp., whose di- make it a place first, and then peo- representative. he selected the plan because it Richard Ellis in Southfield, said a rector Scott Martin, said Friday ple could see what it would look An RFP for demolition is to be would get much of the property mixed-use opportunity including that he’ll start approaching foun- like,” Glieberman said. issued next, so that a national sal- back on the tax rolls while saving retail makes sense for the area. dations and other potential sup- He said that since nearby Cork- vage company can remove arti- some of the field and stadium. “Given what’s going on in Cork- porters immediately. town and Mexicantown neighbor- facts that might be worth reselling. “It is a scaled down and realistic town, I think it’s pretty timely,” he Robert Ankeny: (313) 446-0404, hoods have been improving, Cross- Zeiler said if demolition begins by version of what to do with a beloved said. [email protected] winds would consider looking at the end of 2006 and developers are but dilapidated stadium,” he said. But it is likely to take about two Jennette Smith: (313) 446-0414, the Tiger Stadium-area project. selected through RFPs by early “We shopped it to developers years for the market demand to [email protected]

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Page 6 CRAIN’S DETROIT BUSINESS June 19, 2006 State disputes entrepreneurial ‘grade’

LANSING — The Michi- improved from last year’s snapshot of a Michigan that exist- reach $2 billion by leveraging oth- said it is one of many initiatives gan Economic Development study. ed several years ago” and reviews er investments, including venture under way that “are the right Corp. is taking issue with a The scorecard mea- data that is at least two years old. capital, bank financing and federal things to do, considering where we new entrepreneurship sures 127 factors, includ- Holman said the state is build- dollars. find ourselves.” scorecard that gives ing growth in the number ing a diversified, entrepreneurial Rob Fowler, president and CEO Michigan a “D” in entre- of small businesses and economy and the grade doesn’t re- of the Small Business Association of Local sites part of state’s preneurial vitality and cli- their payrolls, research- flect changes such as his new of- Michigan, said the report card is mate (See column, Page commercialization activi- fice and the state’s new 21st Centu- not meant as a study of how the ad- tourism campaign commercials 11). ty, financial and innova- ry Jobs Fund. ministration or the MEDC is do- Michigan’s new tourism cam- The scorecard, pro- tion support, and The $1 billion fund is for various ing, or a criticism. paign adds an urban element this duced by the Small Busi- business-climate factors programs, including loan guaran- “It’s a benchmark study,” CAPITOL BRIEFINGS week with the launch of TV com- ness Foundation of such as costs, regulations, tees, small-business lending, pri- Fowler said. He said 70 percent of Amy Lane mercials featuring destinations Michigan, Edward Lowe education and workforce vate-equity, venture-capital and the data is from 2004 or 2005, and it such as The Henry Ford, Detroit Insti- Foundation and Florida-based con- development. mezzanine investments, and is “the most up-to-date data any- tute of Arts, Detroit Zoo and down- sultant GrowthEconomics Inc., finds In a statement, Chris Holman, grants and loans for “competitive- body has, anywhere.” town Detroit’s Renaissance Cen- Michigan’s grade in “entrepre- the MEDC’s small-business advo- edge” technologies. He said he hopes the 21st Centu- ter. neurial dynamism” only slightly cate, said the study “provides a The state expects the fund size to ry Jobs Fund “moves the data” and The commercials are part of a $3 million summer promotion in Cincinnati, Milwaukee and On- tario, where Travel Michigan’s new “Pure Michigan” campaign has been running since May 22. The campaign plays on the natural re- 6PDOO%XVLQHVV6ROXWLRQV sources and qualities that make Michigan unique. Michigan native and actor Tim Allen is the voice of two radio and three TV spots that promote golf, water-related vacations, and recre- ation. Under production is an addi- tional radio ad that features urban dining and nightlife. The ads were created by McCann Erickson Worldwide in Birmingham. Comings & Goings ■ Robert Filka, former COO of the Michigan Broadband Development Au- thority, has become CEO of the Michigan Association of Home Builders. He replaces Lynn Egbert, who left the group in 2005. ■ John Bracey, director of pro- grams for the Michigan Council for Arts and Cultural Affairs, has been named the council’s executive di- rector. He succeeds Carol Culham, who has become assistant to the di- rector of cultural economic devel- opment in the Michigan Department 8IFUIFS
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June 19, 2006 CRAIN’S DETROIT BUSINESS Page 7 BRIEFLY Walsh College to build addition company — was involved. Made in Detroit bought the latory steps using best practices at 7 p.m., will showcase downtown This year Paxahau didn’t get property in 1997 and planned a from around the country. clubs, galleries, films, shopping Walsh College plans to begin con- clearance from the city to begin mixed-use project including more — Anjali Fluker and dining with an artists market, struction of a $14 million addition promoting this year until the end than 300 homes. a film screening, a mini taste festi- to its Troy building today. of March. Paxahau hopes to begin Gerald Johnson, Made in De- Civic groups combine offices val and live entertainment. The two-story, 36,000-square- booking artists and promoting troit’s president and COO, said the The event is a collaboration of foot “green” addition will feature a next year’s festival this summer. amount of damages sought has not The Downtown Detroit Partnership the Detroit 300 Conservancy/Campus library/media center, auditorium, “This year was about rebuilding yet been determined. has consolidated offices with the Martius Park and the Tourism Eco- classrooms and public spaces. the festival,” said Jason Huvaere, The lawsuit was filed June 9 in former Detroit Downtown Inc. office, nomic Development Council. Admis- Chicago-based Valerio DeWalt Paxahau’s managing director, in a the Washington court and the gov- headed by partnership Vice Presi- sion is free. Train Associates, which designed statement. “... Now that the event ernment has 60 days to answer the dent Linda Bade, moving to 719 For more information, visit the nearby Kresge Foundation build- is on solid ground and its bills are lawsuit. Griswold, Suite 270, on June 1. www.theworldiscoming.com. ing, is architect on the project. paid, we are shifting to growing — Jennette Smith The telephone number is (313) — Sherri Begin The extra space will help Walsh the festival and focusing on it 964-8500 and the fax number is meet current and future enroll- year-round.” (313) 964-8508. The former fax num- ment growth, President Keith — Brent Snavely Village Green forms ber of (313) 961-7219 also operates. Dearborn reaches $6M Pretty said in a news release. venture with St. Louis firm Downtown Detroit Partnership settlement in police crash Over the past five years, enroll- Developer sues over river land was created in July from the merg- ment at the college has increased Farmington Hills-based Village er of the Greater Downtown Partner- The city of Dearborn and the es- to 4,400 students from 3,000. Made in Detroit Inc. has filed a Green Cos. has formed a joint ven- ship and Detroit Downtown. tate of a 35-year-old computer tech- — Sherri Begin lawsuit in the U.S. Court of Federal ture with The Lipton Group Inc. of St. — Robert Ankeny nician, who was killed in 2003 when Claims seeking compensation over Louis to manage 5,150 housing his car was hit by a city car, reached property that ultimately became units in Missouri. The venture, a $6 million court-facilitated settle- Paxahau says Movement part of the Detroit River International called Village Green Management Woodward fair is Friday ment that set aside a $25 million crowd topped 45,000 Wildlife Refuge. The lawsuit names Co.-Lipton L.L.C., closed June 2. North Woodward near Detroit’s jury verdict returned last year. the U.S. Army Corps of Engineers, the — Sheena Harrison Campus Martius will close, begin- William Owen died Feb 17 after Ferndale-based Paxahau Promo- Environmental Protection Agency, De- ning at 11 a.m. on Friday for a day- his car was smashed into as he was tions Group said Friday that 45,323 partment of the Interior, and the Fish 6 cities to get redevelopment aid time attractions fair and the leaving work at Ford Motor Co. in people attended Movement 2006, and Wildlife Service. evening launch of Fourth Fridays. Dearborn. The city vehicle was the three-day electronic music fes- Detroit-based Made in Detroit’s The Michigan Suburbs Alliance last The “Doors Open Detroit 2006” driven by a traffic officer who was tival that took place over Memori- lawsuit alleges the government month announced Grosse Pointe fair will run through 3:30 p.m. and acting outside the scope of his du- al Day weekend, and said it is agencies denied its development Woods, Hamtramck, Lincoln Park, feature over 30 metro Detroit at- ties in the high-speed police chase working toward producing next plans for the property totaling 407 Mt Clemens, Rockwood and Ro- tractions including the Detroit Insti- of a stolen car. year’s festival. acres in Gibraltar and Trenton and seville as the next round of Rede- tute of Arts, the Detroit Historical Mu- The State Court of Appeals or- The festival, in its seventh year, did not provide fair compensation velopment Ready Communities. seum, Atheneum Hotel, Motown dered Oakland County Circuit Chief has been plagued in the past by dis- for the property. Federal agencies The program was introduced Museum, Seldom Blues and Sweet Judge Wendy Potts to supervise organization and financial losses. designated the area for preserva- last year by the alliance to help Georgia Brown. Exhibitors will offer settlement talks because of trial It was the first year that Paxa- tion. In 2003, the Trust for Public Land older cities attract redevelopment discounts and one-stop shopping court irregularities raised in an hau — a local record label, book- bought the property in Chapter 11 through certification and techni- for planning summer outings. appeal of the jury verdict. ing agency and event-production bankruptcy proceedings. cal assistance to streamline regu- The evening event, which begins — Robert Ankeny COMING SOON ON THE SOMERSET CORRIDOR

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Page 8 CRAIN’S DETROIT BUSINESS June 19, 2006 OPINION Winners, losers and a nod to Hockeytown ome short takes on “winners and losers” in local busi- ness news: S Winners: Wayne County commissioners for a Thurs- day vote to create a county land bank to streamline handling of tax-foreclosed properties. The new bank will concentrate on clearing titles on recent foreclosures and negotiate sales to those with the best redevelopment plans. This is a big boost for Wayne County development. Losers: The Michigan Gaming Control Board for its tortoise pace in resolving the vendor license issue for Greektown restaurants locked out of accepting meal vouchers distributed by the Greektown Casino. The cost of a casino vendor license application can top $30,000, a deterrent for some small restau- rants. Others were rejected because of unpaid tax issues, which have been resolved. Even gaming board members seem to think its rules are too strict. Still, a solution has been post- poned until August. Why is this so tough to figure out? Winners: Detroit IS Hockeytown. Only sometimes the team may play elsewhere. As Crain’s went to press, Compuware Corp.’s Peter Karmanos Jr. was preparing to cheer on his Car- olina Hurricanes in the Saturday game that could determine LETTERS the winner of the Stanley Cup. We hope Karmanos joins the fraternity of local entrepreneurs whose teams have dominated Stanley Cup play in recent years: Mike Ilitch’s Red Wings, Right-to-work is wrong idea which have three cups since 1997, and Bill Davidson’s Tampa Editor: the alarming facts that accompany Bay Lightning team, which won before hockey’s lockout in Crain’s Detroit Business right-to-work laws in a state. The 2004-05. If the Wings can’t be in the finals, it’s great to have an- Recently, a Crain’s editorial welcomes letters to the editor. posed the question of why aren’t All letters will be considered for average worker in a right-to-work other local winning connection. foreign plants locating here (Keith publication, provided they are state has a consistently lower Losers: Opponents of limited same-sex schools. Ironically, Crain, “Why aren’t there foreign signed and do not defame quality of life than in other states, that opposition could help defeat the so-called Michigan Civil plants here?” May 22). After individuals or organizations. making about $5,300 a year less. briefly speaking about that, Mr. Write: Editor, Crain’s Detroit Twenty-one percent more people Rights Amendment ballot issue when parents and advocates of Business, 1155 Gratiot Ave., Crain then outlined what he be- in right-to-work states lack health Detroit, MI 48207-2997. education options realize the anti-affirmative action proposal lieves is an answer to that ques- insurance. The infant mortality E-mail: [email protected] could also ban same-sex public schools. tion; that Michigan doesn’t have a rate is 16 percent higher in right- Message boards: Share your Winners: Golfers and green-space lovers. Detroit city offi- right-to-work law, and then asked to-work states and poverty rates views in our online community. are also higher. The rate of work- cials recently acknowledged they were negotiating with pri- for a discussion. Gladly. forums.crainsdetroit.com. I think it is important to first place deaths is 51 percent higher vate developers to sell the city-owned Rackham Golf Course in in states with right-to-work, point out that Mr. Crain’s premise nonunion. According to Michigan where unions cannot speak up on Huntington Woods for $5 million to reduce the city’s pending is false. Recently, Honda decided it WARN notices from 2000 to April behalf of the safety of workers. $63 million deficit. Aside from the fact no-bid deals are not would locate a new U.S. plant If the time is right for a “right- somewhere in the Midwest. Press 2006 only 126 of the 678 plants that good public policy, the property has a deed restriction dating to-work for less” debate, Michigan reports have shown that the lead- were closed were union. Non- from the 1920s gift from the Rackham family to the city that re- union shops are not immune to will see, as it always has seen, that ing candidates for this plant are right-to-work is wrong for us and quires it to remain a golf course. Now the good news. Hunting- Indiana, Ohio, Illinois and Michi- the price of attempting compete in ton Woods officials want to ask voters to approve a 1-mill tax a global market. Looking at the na- that we do not belong in the same gan, none of which are right-to- category as states like Mississippi, tional announcements for plant that would allow the city to buy the golf course for the same work states. GEMA, a state-of-the- Alabama and Arkansas. closings for the past months, the money, $5 million. According to a report in Friday’s Detroit art engine plant, which includes Mark Gaffney Mitsubishi as a partner, recently states that pop up include Nebras- President News, Detroit officials said they would consider the suburb’s opened here in Michigan. ka, Iowa, Virginia and North Car- Michigan State AFL-CIO Lansing offer. With the city-owned Detroit Zoo next door to the golf Second, about two-thirds of the olina, all right-to-work states. course, this resolution could strengthen city-suburb relations. plant closings in Michigan are We also should look at some of See Letters, Page 9

CHRISTOPHER CRAIN: Let’s bring pro soccer to Detroit

The whole world is now fully lost soccer called jogo boni- ranked No. 2 last year. Toronto for the 2007 season. Perhaps one of our business lead- in the athletic splendor that is the to, Portuguese for “the We have competitive Several of the franchises are re- ers and team owners would try his World Cup … with the obvious ex- beautiful game.” And teams in just about porting profitability. A generation hand at the world’s favorite sport. ception of 260 million Americans. with the passing of the every professional or that played soccer instead of T-ball We have plenty of big-league experi- I must confess myself a fan of the World Cup, Americans collegiate sport, and and the increasing purchasing ence with Mike Ilitch, owner of the World Cup and of soccer in general. will forget about the these teams bring mil- power of urban immigrants have Red Wings and Tigers; Com- I’ve been using my TiVo to record game for another four lions in revenue to their created fertile markets for MLS puware’s Peter Karmanos Jr., who each day’s matches and watching years … communities. So, what franchises. Detroit is no different. might be next to bask in Stanley them in the evening. After experi- But perhaps this year about a soccer club? Detroit Mayor Kwame Kil- Cup glory as owner of the Carolina encing the madness that was the Su- is different. Major League Soccer patrick has plans for Tiger Stadi- Hurricanes; Bill Davidson, owner per Bowl, I marvel at the sheer im- One of this area’s has grown steadily, with um that include keeping the field of three championship teams; or mensity of the World Cup. many attractions is its teams in Boston, Chica- for baseball or softball games. But Quicken Loans and Cleveland Cav- But like every World Cup before status as a sports fan’s go, Columbus, Dallas, wouldn’t it be great if the plan aliers owner Dan Gilbert. it, June will turn into July and the paradise. Every year The Sporting Houston, Kansas City, Los Angeles, called for a new soccer-specific sta- Regardless of whether we add a Brazilians will again demonstrate News ranks Detroit in the top 10 New York, Salt Lake City and dium to host MLS’s newest fran- new soccer franchise, Detroit is their superiority with their style of cities for a sports fan to live in. We Washington. It will expand to chise, the Detroit Renaissance? paradise for this sports fan. DETROIT BUSINESS MAIN 06-19-06 A 29 CDB 6/16/2006 5:54 PM Page 1

June 19, 2006 CRAIN’S DETROIT BUSINESS Page 29 Lawmakers push bill to keep tax credits if SBT dies

BY AMY LANE credits and current projects in the that employment tax credits autho- ma, R-Wyoming, said the Senate CAPITOL CORRESPONDENT works. And Mark Morante, vice rized by MEGA through the end of hopes to complete work this week The state has offered president of development financ- this year would be claimable under on the brownfield and historic- LANSING — Tax credits for re- ing at the Michigan Economic Devel- any SBT replacement. preservation measure. “As far as developing brownfields and his- about $2 billion in opment Corp., said his phone has In addition, any business in a re- the other credits involving the toric properties are halfway to been ringing off the hook. naissance zone before the end of SBT, those are still being looked at preservation. SBT credits under “It’s everything. We do get a lot this year would be guaranteed their and worked on,” he said. The state House last week swiftly of brownfield calls. But on our SBT-exempt status would continue Going before the Senate this passed a bill to keep in place the tax the MEGA program. MEGA deals, it is also becoming a under a SBT replacement. week is House Bill 6183, sponsored credits scheduled to mature after very, very big concern,” both to The proposal would bridge the by Rep. Glenn Steil, R-Cascade the likely 2007 expiration of Michi- With Republican legislative gan’s single-business tax, and the leaders prepared to enact Oakland companies that have been granted gap until Michigan determines an Township. The bill would let com- Senate plans action this week. County Executive L. Brooks Pat- tax credits over the years and those SBT replacement, and successor panies whose SBT brownfield and That’s good news to areas such terson’s proposal to eliminate the the state is wooing, Morante said. tax incentives. historic-preservation credits don’t as Detroit, where some 100 brown- SBT two years earlier than its One short-term solution is a pro- But lawmakers are still assess- vest until 2008 or 2009 to apply the field-redevelopment projects are scheduled 2009 expiration, there’s posal, submitted to the Legislature ing the urgency of those items. credits to 2007 tax liabilities. in various stages of planning, rep- a new timetable that affects previ- last week by state Treasurer Robert Ari Adler, press secretary to Amy Lane: (517) 371-5355, alane resenting $1.3 billion in invest- ous projects with long-running tax Kleine, for a new law guaranteeing Senate Majority Leader Ken Sikke- @crain.com ment, said Art Papapanos, vice president of the Detroit Economic Growth Corp. Thirty-five of the pro- jects have been pre-approved by the state for about $65 million in credits, he said. “Developers want to know that the legislation … is in Detroit May 2006 place,” Papapanos said. Pittsburgh In Detroit and across the state, there’s been concern that projects under way or in some stage of progress are facing financing prob- lems and could even be at risk, be- cause of the tax credits’ uncertain- ty. The list includes Detroit’s Book Cadillac hotel, a $180 million rede- velopment project in line for $13 million in state tax credits. And it’s not just brownfields and historic preservations that are af- fected. Since 1995, the state has of- fered about $2 billion in SBT tax credits for business expansions or relocations under the Michigan Eco- nomic Growth Authority program. About $150 million of those credits have been claimed, as Crain’s re- ported in its June 5 issue. In addition, under the state’s tax- free renaissance-zone program, the state offers exemption from the SBT for a prescribed time period. has sold its ownership interest in Ann Arbor mayor shows off commuter rail possibility Ann Arbor Mayor John Hieftje took about 60 regional decision- makers for a ride Thursday after- noon in hopes of convincing them of the need for a commuter rail that stretches into Livingston County. Ann Arbor city leaders, local business executives, representa- tives from the University of Michigan and others rode a passenger train round-trip from Whitmore Lake to In 2001, Huron partnered with management to recapitalize Delta Educational Systems, Inc., a post- Howell — the route that Hieftje secondary education company with three schools offering programs in the areas of allied health, hopes will one day cart thousands of commuters in and out of his city. advertising, criminal justice, business, cosmetology, and IT. Working with management, we embarked Hieftje said 65,000 workers com- on a rapid growth strategy that included three add-on acquisitions, over 100 new programs, and five mute to Ann Arbor every day, the majority of which drive their own new branch campuses. During Huron's investment period, EBITDA increased eight-fold, leading to a cars. A quarter come from Liv- cash-on-cash annualized rate of return in excess of 85% and a return of 11.7x invested capital. ingston. Creating a north-south commuter rail would help alleviate greenhouse gases generated by those drivers, improve congestion on U.S. 23 and decrease the need for additional parking spaces at an av- erage cost of $40,000 each, he said. HURON CAPITAL PARTNERS LLC “For every 1,000 people we can put on a train, that’s $40 million in avoided costs,” Heiftje said. 500 Griswold, Suite 2700 225 Ross Street, 4th Floor Farmington Hills-based Federat- Detroit, Michigan 48226 www.huroncapital.com Pittsburgh, Pennsylvania 15219 ed Financial Corp. of America owns Tel: 313.962.5800 Tel: 412.201.7040 the stretch of railway that Hieftje hopes to see developed into a com- muter route by 2009. He estimates Management Buyouts | Recapitalizations | Corporate Spin-Offs | Buy & Build Platforms | Family Succession Transactions the project’s cost at $27 million. — Sheena Harrison DETROIT BUSINESS MAIN 06-19-06 A 30,31 CDB 6/16/2006 7:05 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS June 19, 2006 ARC: Joint effort opens ■ From Page 1 fiscal 2006, which ended Feb. 28. Much planning also has gone into The company makes Quiet Steel, a the building’s security. Although composite metal that produces less the companies plan to collaborate noise than regular steel. on some projects, the center con- Denmark-based Brüel & Kjær tains safeguards if a partner’s cus- makes sound and vibration mea- tomer wants its information to re- surement software and tools, and main confidential. For instance, outfitted the Application Research rooms in the facility can be coded to Center with its latest technology. unlock only for certain employees. The company reported 2005 sales In 2004, the Michigan Economic of $1.3 billion globally. Development Corp. granted MSC an Link Engineering, based in Ply- $800,000 single-business-tax credit mouth, makes auto- over 10 years to de- motive testing sys- velop the facility. tems and supplied We’re all in Chief Communica- the center with dy- “ tions Officer Michael namometers — ma- the noise- Shore said the center chines that can sim- fits in with the state’s ulate road reduction goal to keep Michi- conditions — and gan at the forefront of other testing equip- business, which automotive innova- ment. Link’s annual tion. sales range from $30 makes us good “Our workforce is million to $40 mil- heavily populated lion on average, partners. with R&D and tech- said Jim Thompson, ” nology talent,” Shore Mark Gresser, executive director of said. “It makes sense Material Sciences Corp. NVH for Link. to draw as many of Together, the companies employ those jobs here as we can.” 57 at the site, eight of whom are The facility allows MSC to boost new hires. They have more than its visibility to the local automo- 250 employees in metro Detroit — tive industry, Gresser said. 200 of whom work for Link. “To be a serious auto supplier, Mark Gresser, MSC’s vice presi- you have to have a world-class fa- dent of sales and marketing, said it cility in the Detroit area,” he said. made sense for the companies to Alan Humphrey, President of collaborate because they don’t Brüel & Kjær’s North American di- compete with each other and can vision, said the partnership allows share expertise. The companies access to facilities that weren’t al- don’t have any plans to merge. ways available. It’s a sentiment “We’re all in the noise-reduction that Link echoes, Thompson said. business, which makes us good “We can offer a range of capabil- partners,” Gresser said. ities to our customers that we The 12-acre center is an experi- couldn’t offer previously,” he said. ment in acoustics. It includes sev- This isn’t the first time manufac- eral reverberation chambers, turers have teamed up to share facil- which are conducive to echoes and ities, said Hank Cox, vice president vibrations, and anechoic cham- for media relations for the National bers with large gray wedges on the Association of Manufacturers in Wash- walls that absorb sound as the ington. He pointed to Sematech, a companies test various products. consortium of the world’s largest Voices become muted inside the chip-makers, which has an Ad- fully anechoic chamber, which con- vanced Materials Research Center. tains wedges on the walls, ceiling “Every manufacturing company and underneath a metal-grate floor. is caught up in this competitive On the lower level, a 350-horse- global marketplace and to survive power motor large enough to fill a they have to look at every possible basement room is encased in 250,000 opportunity to reduce expenditures pounds of concrete to block vibra- and improve efficiency,” he said. tions that could taint measure- Sheena Harrison: (313) 446-0325, ments taken in the chamber above. [email protected]

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June 19, 2006 CRAIN’S DETROIT BUSINESS Page 31 Bridge: Lawmakers threaten funds ■ From Page 3 anointed plan for a new crossing permits and land and negotiate a proval in Canadian House of Com- Luxury by next year. The group discarded customs agreement to start work mons before being moved on to the “twinning” the bridge, owned by on its $600 million tunnel. Canadian Senate for passage. It from one extreme Manuel Moroun, and a plan to con- That group is owned by the could be enacted by the governor vert an aging rail tunnel to truck Canadian Pacific Railway and the Bo- general by this fall, Butler said. use late last year to focus on a Del- realis Transportation Infrastructure Transport Canada also isn’t to the other. ray site for a crossing that could Trust, the investment arm of the On- ready to give up on the binational cost taxpayers as much as $1.3 bil- tario Municipal Employees Retirement study, Butler said. Should Michi- lion. System. gan’s funds dry up, Canada still Gilbert and LaJoy say that toss- The two budget amendments supports the process. ing the privately funded plan to passed the state House and Senate It’s not clear whether the U.S. twin the span would waste $184 in late May. They are now in con- Federal Highway Administration million the state is already spend- ference committee. feels the same. That agency said it ing on the Gateway project, which Detroit International has the was “not appropriate” to speculate connects the Ambassador Bridge land and approvals to break on whether it would continue on EXTREMELY DEPENDABLE EXTREMELY ACCOMMODATING to I-75 and I-96, and hundreds of ground on its $400 million twin with the study until the state takes Luxury sedans to stretch limousines VIP motor coaches to luxury executive vans millions more to build a new span next spring, said Dan Stam- “definitive action.” bridge. per, Detroit International presi- Metro Cars offers the widest selection of luxury ground transportation options available. Meanwhile, work on the study Whether it’s your next flight out, coordinating a large group, or a night on the town, Funding of the project should be dent. we are extremely dedicated to your satisfaction. continues, Shrek said. The group held until privately funded options But Detroit International’s plan FOR RESERVATIONS AND INFORMATION ON ALL OF OUR SERVICES CALL: are put back on the table, Gilbert still won’t go unchallenged. The will start drilling core samples 800-456-1701 said. company is fending off a federal Downriver in a matter of weeks. Bill Shrek, MDOT director of Canadian bill aimed at giving the “We can’t as a state agency react communications, said that the government more oversight over to laws until they’re passed,” he study has yet to determine how the international crossings and strong said. “But as some point (passage www.metrocars.com www.metrocoach.com new crossing would be funded and community opposition in Windsor of the amendments) would stop the that any money spent by public or to its plans. process.” private interests would be made Canada’s Bill C-3 wasn’t gun- Michelle Martinez: (313) 446-1622, back in tolls. ning for the Ambassador Bridge, [email protected] But the legislators say they want but would give the Canadian gov- more oversight of the process and ernment authority to veto con- looking at privately funded op- struction or alteration of interna- tions will be a top priority. tional bridges, and regulate their That could be a good thing, said maintenance, safety, security and John Taylor, an associate profes- operation, said Mark Butler, a sor of marketing and logistics at communications officer with Grand Valley State University. Transport Canada, the Canadian The time and dollars spent on equivalent of the U.S. Federal High- the study are “troubling,” he said. way Administration. Legislative oversight might deter- Stamper said that Detroit Inter- mine whether a new crossing is national had been “comforted” by even needed. But the push towards Transport Canada testimony that private dollars “probably benefits the bill wouldn’t interfere with its the Ambassador Bridge,” he said. plans to twin its span, but was “They own the land.” wary about the “micro-managing” The Detroit River Tunnel Partner- of the bridge that it would allow. ship still would need to acquire The bill is awaiting final ap-

Jazzin’ on Jefferson expands to two days ÛiÀޜ˜iÊ >ÃÊ̜ÊV>ÀÀÞÊܜÀŽiÀýÊVœ“«i˜Ã>̈œ˜Ê The Jefferson East Business Asso- to 20,000. ciation is expanding its Jazzin’ on The festival will be from 4 p.m. to Jefferson from one to two days. 10:30 p.m. Friday and from 1 p.m. to ˆ˜ÃÕÀ>˜Vi]ÊÜÊ>ÊV>ÀÀˆiÀÃÊ>ÀiÊÌ iÊÃ>“i]ÊÀˆ} ̶ The festival, which will cost 10:30 p.m. on Saturday a closed of about $125,000 to produce, drew section of Jefferson Avenue at about 12,000 attendees last year, Chalmers Street. Acts include :URQJ said Chris Garland, association Robert Bradley, Thornetta Davis, program director. The goal is to R.J. Spangler and Eddie Burns.

Page 32 CRAIN’S DETROIT BUSINESS June 19, 2006 Ethanol: Suppliers fuel up to fill demand for alternative fuel ■ From Page 1 a second rail track to double the tion — because new equipment has fers tax breaks, loans and grants to number of railcars that come into to be installed to handle fuel with LOCAL SERVICE STATIONS help offset the high price of the terminal daily to nearly 20, Al- higher ethanol content. Knight En- ethanol, as well as to subsidize the bertie said. RKA reported 2005 rev- terprises sells about 12,000 gallons WITH E85 PUMPS cost of installing the infrastruc- enue of $245.9 million. of E85 a month at its two stations, ■ Citgo, 8438 Telegraph Road, ture required to dispense E85. “With more storage, we’ll just be he said. DiMartini declined to re- Dearborn Heights. In addition, the Michigan Legisla- able to move more product,” said lease company revenue. ■ Citgo, 29009 Northwestern ture is considering bills that would Albertie, who added that RKA can Only three stations in Southeast Highway, Southfield. give retailers incentives to make barely keep the supply it has in Michigan sell E85. Nationally, ■ Sunoco, 21435 W. Eight Mile E85 more economically viable. storage because of demand from about 600 of 170,000 gas stations do. Road, Detroit. Wayne County Executive Robert other states. Proponents cite many advan- ■ Meijer, 29585 Mound Road, Ficano also has been working with The new production plants in Some automakers are putting tages of ethanol, produced from Warren (scheduled to open this officials from Michigan State Univer- the state also mean good news to yellow gas caps on flex-fuel crops such as corn. It burns clean- month). sity to establish the state’s first ur- vehicles that can run on E85. other fuel distributors, who believe er than gasoline, is a renewable Source: National Ethanol Vehicle Coalition ban-agricultural zone. The zone is that more supplies could help re- product, and is made in U.S., which designed to draw ethanol produc- duce costs and thereby encourage WATCH WHAT YOU PUMP reduces the nation’s dependency Ethanol plants set to tion plants to the county by giving more investment in and use of E85. on foreign oil, among other things. begin production them a break on state and local Novi-based Knight Enterprises Inc., Look — or, more accurately, read Last year, ethanol displaced 170 in Michigan taxes for up to 15 years. — before you fill your tank with million barrels of oil, lowered con- petroleum distributor and owner- E85. The alternative fuel that is 85 ■ Ficano also is pushing for 20 sumer gasoline prices about eight The Andersons Albion Ethanol, operator of 35 gas stations in the percent ethanol and 15 percent Albion, August more gas stations to offer E85 in state, took a financial hit by invest- cents a gallon and reduced green- the county and is supporting pro- gasoline can be used only in ■ U.S. Bio Woodbury, Lake house gas emissions by 8 million ing in E85 but hopes it will pay off. flexible-fuel vehicles, which also Odessa, September posed legislation to remove state accept regular gasoline. Flex-fuel tons — the equivalent of taking Knight spent nearly $10,000 each at ■ Midwest Grain Processors, Riga, taxes from the fuel at the pump. He vehicles incorporate modified fuel more than a million vehicles off the two gas stations to convert former December also plans to require that all vehi- racing fuel tanks to E85, which be- tanks, lines, injectors and road, according to a speech made cles that the county buys should be computer systems to handle the ■ Marysville Ethanol, Marysville, gan operating last fall. at February’s National Ethanol able to run on E85. more-corrosive alcohol-based fuel. July 2007 Conference by Bob Dinneen, presi- “It’s a new product, a new mar- Source: Michigan Corn Growers Additionally, General Motors If a vehicle owner uses E85 in a dent of the Washington-based Re- ket,” said John DiMartini, general traditional engine, any damage Association Corp. in April announced plans to newable Fuels Association. Text from manager and senior vice president caused would not be covered under add 20 E85 fueling sites at Meijer of Knight Enterprises. “Anytime the warranty. To be sure your vehicle Dinneen’s address was posted on utor Atlas Oil Co., said E85 needs to Inc. stores in Southeast Michigan. you’re the initial purveyor to is equipped for E85, look for a the trade organization’s Web site. be cheaper because it is less effi- But until more incentives are bring a product to the market, sticker near the fuel cap or check E85, which is being heavily mar- cient. That means a car fueled with adopted and the cost drops, those there are certain advantages you the eighth digit of your vehicle- keted in Southeast Michigan, can E85 would need to refill more often who want to invest in E85 are play- have versus your competitors. … identification number and compare it be used only in vehicles with flex- than a car running on regular gas, ing a waiting game, said Rachel with this list from the National The question is, how soon your fuel engines. Those vehicles also he said. Kuntzsch, director of industry ser- Ethanol Vehicle Coalition: www. can run on regular gas. competition jumps on this.” e85fuel.com/information/vin.php. “(Ethanol) vices for Detroit-based NextEnergy. Knight Enterprises also offers Michigan is among the leading needs to be “Right now, unfortunately, with E85 at two Citgo stations in Dear- gallon. Those buying at that price states, with 230,123 flex-fuel vehi- cheaper to offset ethanol, the price is not a savings,” born Heights and Southfield for 10 are blenders, distributors and ma- cles on the road, according to the that impact,” said Kuntzsch, who coordinates cents a gallon less than regular gas jor oil companies. The exception is Washington-based trade group the Evans said. “One NextEnergy’s Detroit Area Clean despite the high price of ethanol; it those who locked it in a lower price. Alliance of Automobile Manufacturers. of the key things Cities Coalition, a U.S. Department of absorbs that cost to encourage more Knight Enterprises still plans to The only states with more are Texas is ethanol has to Energy plan that pushes alternative- use. Last week at the Southfield sta- install a dozen more E85 pumps by with 354,350 and Florida with be priced where fuel infrastructure and use. tion, E85 was $2.78 a gallon. At the next year “once availability of 271,957. The Big Three in recent you can pass a “As there’s more production fa- Dearborn Heights location, an area ethanol cracks,” DiMartini said. months have committed to putting Evans level of savings cilities (in the state), I hope that DiMartini described as “extremely DiMartini added that future E85 millions more on the market. on to the cus- the price will come to more compa- competitive,” E85 was $2.67. pump installations will be much But Mike Evans, executive vice tomer. We want E85 to be cheaper to rable level,” she said. DiMartini said the wholesale cost more expensive for the company — president of business development mitigate that.” Anjali Fluker: (313) 446-6796, of ethanol today is about $4.25 per maybe $25,000 to $75,000 per loca- for Taylor-based petroleum distrib- But the federal government of- [email protected] Ansara: Restaurant group is rapidly spreading its wings ■ From Page 3 said Victor Ansara, son of An- and price of the food and low-key helped strengthen relations be- strategic type of way. He is analyti- drew, who now is president. “And ANSARA’S GROWTH bar keeps adults happy as well. tween the company and its fran- cal … he builds a strategy, and then it wasn’t until 1998 that we really “From the time you walk in, if chisees. Ansara served for two he runs with it.” ■ started feeling comfortable with 1961: Company founded by you have kids, the waiter greets you years as president of Red Robin’s Ansara credits his father and Andrew Ansara Sr. and George the direction of the company.” with children’s menus,” and cus- franchise business council and re- uncle, who came to the U.S. in 1951 Ansara; Big Boy franchise opens in tomers are offered balloons on the mains a member of the council. from Lebanon, for creating a set of Since 1998 Ansara has been Garden City. opening about three Red Robin way out, said Jerry McVety, presi- In 2005, Ansara Restaurant values that continue to guide the ■ 1991: Red Robin of Michigan restaurants per year. Fueled by dent of McVety & Associates Inc., a Group’s sales from five Big Boy company. Inc. founded and area gourmet burgers, beer and bal- development agreement for metro Farmington-based food-service and restaurants and its Red Robin “They came over here and they loons, Red Robin is a casual dining Detroit is reached. hospitality consulting firm. restaurants topped $57.3 million, up really didn’t have anything,” restaurant that appeals to kids and “If you can get the kids to like Ansara said. “They worked hard ■ 1993: First Red Robin franchise 15.3 percent from $49.7 million in parents alike. opens in Novi. the place, then the kids will tell the 2004. This year, Ansara said he ex- for a number of years and opened And that, said Ansara said, is parents where to go when the fami- up their first Big Boy. They did ■ 2005 sales: $57.3 million. pects sales will exceed $70 million. what initially caused his family- ly goes out for dinner, so it’s a good According to trade publication that, really, on a shoestring.” ■ 2006: 17th Red Robin opens in owned company to become one of strategy,” McVety said. Franchise Times’ most recent an- Over the years the two brothers Commerce Township. Red Robin’s first franchisees east Despite Michigan’s troubled nual list of the largest 200 restau- opened and operated 17 Big Boy ■ of the Rockies. Owned today by President Victor economy, Ansara said, sales at his rant franchisees, Ansara Restau- restaurants. Although some were Ansara, Norman Ansara and “Being somebody who has restaurants increased during the rant Group ranked 142nd, based on sold, Ansara remains a loyal Big Andrew Ansara Jr., sons of Andrew raised four kids, I’ve felt uncom- first three months of this year but Boy franchisee. In fact, Ansara Sr.; and Lew Ansara and Denise 2004 sales. began to slow about two months fortable going into some other ca- Boumaroun, children of George. Tony said he is in the process of remodel- sual dining restaurants,” Ansara While founders Andrew Sr. and ago. Michaels, CEO ing the five remaining restaurants. said. “But at Red Robin, we don’t George continue to provide advice, Ansara’s Red Robin restaurants of Warren-based Ansara also believes there is shy away from the families.” they have left the restaurant average about $3.5 million in an- Big Boy Restau- room for still more Red Robin In addition to offering a chil- business and are active in other nual sales, a figure higher than rants Internation- restaurants in Michigan and said dren’s menu, Red Robin has a businesses. Red Robin’s $3.2 million average al L.L.C., also has the future is bright for the Denver- number of features that families unit sales for company-owned high praise for based company’s national expan- find appealing. First, there is the entrees come with “bottomless restaurants. Ansara and said sion plans. restaurant’s main theme: Gourmet steak fries” and free refills for soda. “They are fabulous,” said Kim some of its Big “I think Red Robin … is some- burgers priced from $7.79 to $8.99. Plus, the decor of Red Robin McBee, Red Robin’s vice president Michaels Boy franchises thing that can adapt and flow and Other entrees include fajita siz- restaurants — ranging from movie of marketing. “They have totally are among Big Boy’s top perform- react,” with food trends, Ansara zlers for $11.99 and barbecue ribs posters, large airplanes hanging embraced the Red Robin culture. ers. said, “as long as we keep the focus for $14.99 as well as a variety of from the ceiling and numerous tele- We are so proud of what they have “They are great operators, al- on the gourmet burger.” soups, sandwiches and salads. visions — also appeals to kids and been able to accomplish.” ways have been,” Michaels said. Brent Snavely: (313) 446-0405; Second, burgers and many other teenagers. Meanwhile, the quality McBee also said Ansara has “Victor handles things in a real [email protected] DETROIT BUSINESS MAIN 06-19-06 A 33 CDB 6/16/2006 6:53 PM Page 1

June 19, 2006 CRAIN’S DETROIT BUSINESS Page 33

www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain West of Woodward for Wings? PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ASSOCIATE PUBLISHER Christopher Crain, BY BRENT SNAVELY own suggestion: Build the arena (313) 446-1645 or [email protected] AND OBERT NKENY on the southwest side of Grand EXECUTIVE EDITOR Cindy Goodaker, (313) 446- R A WINGS NEW HOME? 0460 or [email protected] CRAIN’S DETROIT BUSINESS Circus Park. MANAGING EDITOR Jeff Karoub, (313) 446- The blue area is 15.4 acres and long rumored as the site for a hockey The United Artists Building and 0402 or [email protected] arena. The Ilitch family controls 34 parcels totaling 8.9 acres in the area, ASSISTANT MANAGING EDITOR Michael Lee, One area often cited for a new adjoining vacant property where but Chris Ilitch says it would cost too much to buy the rest of the land. (313) 446-0416 or [email protected] hockey arena for the Detroit Red the Tuller Hotel once stood is SPECIAL SECTIONS EDITOR Shawn Selby, (313) Wings is the land west of Wood- owned by Olympia Development. 446-1654 or [email protected] GRAPHICS EDITOR Nancy Clark, (313) 446- ward Avenue behind the Fox The- Across Bagley Street toward 1608 or [email protected] St. Antoine atre, and the site continues to Clifford St. Ford Washington Boulevard is the site COPY EDITOR Vic Doucette, (313) 446-0410 make sense to some local ob- Detroit Field or [email protected] Hockeytown of the former Statler Hilton Hotel, DATA EDITOR Anne Marks, (313) 446-0418 or servers. Café Comerica 375 owned by the city. [email protected] However, Chris Ilitch, presi- Park Ilitch Holdings and the Detroit WEB EDITOR Dan Eizans, (313) 446-0473 or W. Grand River Brush [email protected] dent and CEO of Ilitch Holdings Inc. Montcalm Economic Growth Corp. have said WEB DESIGNER/PRODUCER Eileen Huang, and son of team owners Mike and Columbia they plan to co-market the two (313) 446-0403, [email protected] Elizabeth EDITORIAL SUPPORT Anita Duncan, (313) Marian Ilitch, discounted that op- sites. 446-0329; Joanne Scharich, (313) 446-0419 75 Adams tion in a meeting with Crain’s in W NEWSROOM (313) 446-0329, FAX (313) 446- oodward Ave DEGC President George Jack- 1687 TIP LINE (313) 446-6766 May. son Jr. said Friday that he “has Even though the family owns other plans” for at least part of REPORTERS more than half of that land in scat- . that site. Robert Ankeny: Covers the city of Detroit, Wayne County government, and law. (313) 446-0404 or tered parcels, Ilitch said the cost Last month, Jackson said he [email protected]. of buying the rest likely would be development sites ever expresses bling an entire site west of Wood- had offered the Statler Hilton site Sherri Begin: Covers nonprofits and education. too high and changes in laws sur- (313) 446-1694 or [email protected] open interest in their target areas. ward might prove difficult. to Livonia-based Quicken Andrew Dietderich: Covers innovation and rounding land acquisition would Beer said the area west of “You can’t take land when peo- Loans/Rock Financial Corp. to build workforce. (313) 446-0315 or make it difficult to assemble the [email protected]. Woodward makes sense because ple think it’s worth zillions,” Mik- its company headquarters. Anjali Fluker: Covers Macomb and Oakland rest. counties, services and environment. (313) 446- of its proximity to other down- lojcik said. “And in Detroit, the But Harrington said that, ei- 6796 or [email protected]. The Ilitches, through Olympia town entertainment venues. problem always is land assem- ther way, “The sooner they decide Sheena Harrison: Covers small business, retail Development L.L.C., own 34 parcels and nonautomotive manufacturing. (313) 446- “I believe it’s the city’s desire to bly.” what they are doing with the sta- 0325 or [email protected]. totaling almost 9 acres in the area continue to create density down- Sean Harrington, owner of the dium, the better. … Any an- Tom Henderson: Covers banking, finance and technology. (313) 446-0337 or once targeted for a new baseball town, and this is next to the Town Pump Tavern at 100 W. Mont- nouncement will hopefully open [email protected]. stadium, according to city tax sports/entertainment district. calm and Centaur Bar at 2233 Park up more property back here to po- Michelle Martinez: Covers health care, transportation and international business. (313) records. There is already parking for the Ave., said development of the area tentially turn into apartments or 446-1622 or [email protected]. The 15.4-acre area is bounded residential, which I feel is the Jennette Smith: Covers real estate and Fox, Comerica Park and Ford Field,” behind Fox Theatre has been held hospitality. (313) 446-0414 or by Grand River Avenue to the Beer said, “It’s only a block or two back for years because existing drop-dead necessary thing for us [email protected]. Brent Snavely: Covers auto suppliers, steel and west, the Fisher Freeway on the from People Mover stops, and Red property owners are asking exor- more than anything else in down- restaurants and entertainment. (313) 446-0405 north, Clifford Street on the east Wing fans love the People bitant prices with the expectation town Detroit.” or [email protected]. and Adams Avenue on the south. Mover.” that an arena will be built there. Brent Snavely: (313) 446-0405, LANSING BUREAU Amy Lane: Covers business issues at the Stadium consultant Lou Beer, On the other hand, Jake Mikloj- While Harrington said he [email protected] Capitol, telecommunications and utilities. (517) 371-5355, FAX (517) 371-2492, president of First Public Corp. in cik, president of Lansing-based wouldn’t mind an arena in his Robert Ankeny: (313) 446-0404, [email protected]. or 115 W. Allegan, Suite 220, Saginaw, said no one looking for Michigan Consultants, said assem- neighborhood, he also has his [email protected] Lansing 48933. ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 Wings: Ilitches look at alternatives Xoran: NEW BUSINESS DEVELOPMENT MANAGER Cathy Ross, (313) 446-0307, [email protected] ■ ADVERTISING SALES Jeff Anderson, Terri From Page 1 Engstrom, Matthew J. Langan, Shawn McCracken, Tamara Rokowski, Dale Smolinski If the Wings want to move, three Wings from Bruce Norris in 1982 said Thibodeau, who is also presi- Can’t sell WESTERN ACCOUNTS Ellen Mazen (Los years is not much time to design and own the team. dent of Bob Thibodeau Ford in Cen- Angeles) (323) 370-2477 CLASSIFIED MANAGER Melissa McKay, (313) and build a new arena, especially Stadium consultant Lou Beer, ter Line. 446-1692 with other complicating factors, president of First Public Corp. in Cobo Arena also is owned by the CLASSIFIED ACCOUNT EXECUTIVE Rebekah scanners Cook, (313) 446-1655 such as gaining approval for any Saginaw, agrees and said the way city and is operated by Olympia Enter- MARKETING DIRECTOR Mary Ann Short amount of public funding that may Joe Louis was constructed makes tainment, another company owned ■ From Page 3 MARKETING ASSISTANT Jennifer Dunn be needed and the relationship be- it difficult to upgrade. by the Ilitch family. That lease also MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea tween Joe Louis Arena and the on- “The engineering changes are so expires in December 2009. changed. The law is what it Beckham, YahNica Crawford going debate about how to fund and vast and expensive that it’s not With the city and the state in fi- is,” said Michael Shore, vice CIRCULATION Candice Yopp, Manager. renovate the adjacent Cobo Center. worth it,” Beer said. nancial distress, one option that president of communica- PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, Designing and building a hock- The Joe basically has only one can’t be overlooked is a suburban tions at the Michigan Econom- (313) 446-0301 ey arena takes, three years at a deck, with seating starting close to location, said Matthew Rossetti, ic Development Corp. “We’re SUBSCRIPTIONS (313) 446-0450, minimum and, given Detroit’s po- the ice and sweeping back, with no president of Southfield architec- (888) 909-9111 going to try to resolve it but TO FIND A DATE A STORY WAS PUBLISHED: tential for heavy winters, four second deck and no mezzanine, tural firm Rossetti. there’s nothing to report at (313) 446-0367 or e-mail the Crain Information Center at [email protected]. years is more realistic, said Steve Beer said. There are no premium, However, Rossetti, whose firm this point. It’s an uncomfort- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Hotujac, principal at Kansas City- luxury boxes except at the top. designed Ford Field and many other able position for us to be in, CRAIN COMMUNICATIONS INC. based HOK Sport, an architectural Such sports arenas being built sports facilities around the nation, but we’re still thrilled by the CHAIRMAN Keith E. Crain and design firm that specializes in more recently have midlevel box- said the national trend is toward deal we struck.” PRESIDENT Rance Crain sports stadiums and arenas. es, Beer said. building arenas in the downtowns SECRETARY Merrilee Crain MEGA, which is part of TREASURER Mary Kay Crain Hotujac, who studied Joe Louis “In Columbus, they’ve done some of large cities. the MEDC, awarded the 10- Executive Vice President/Operations Arena about 10 years ago for the Il- very neat, creative things, with a For the Ilitches, who also own or year tax credit last week. William A. Morrow Group Vice President/Technology, itches, said building a new arena tower of boxes on the corners that operate the Fox Theatre and Com- Shore said Xoran had Manufacturing, Circulation is preferable than revamping Joe are right on the action,” Beer said. erica Park, staying downtown been urged to move by Robert C. Adams Vice President/Production & Manufacturing Louis, which could cost $180 mil- “There’s no way to do anything that makes even more sense. Sukovic’s native country of Dave Kamis lion or more. creative with the Joe.” “I think it’s better for your Serbia, and by Augusta, Ga. Corporate Director/Circulation Patrick Sheposh He said an 18,000-seat arena could If the Red Wings move out of Joe brand to be downtown,” Rossetti “Augusta really made a G.D. Crain Jr. Founder (1885-1973) be built for about $250 million; park- Louis Arena it could open up a lot said. “But the city would have to strong effort to get them,” he Mrs. G.D. Crain Jr. Chairman (1911-1996) ing could cost up to $100 million, de- of additional space for an expan- really come to the table for it to said. EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; pending on site requirements. sion of Cobo Center, which is work out.” The MEDC projects that (313) 446-6000 Built in 1979, Joe Louis Arena hemmed in by neighboring build- Wherever a new hockey arena is the tax credit will allow Xo- Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out cost $57 million and was funded by a ings and the Detroit River, said to be built, Miklojcik said, a key to ran to add 171 jobs, create of state, $79 one year, $138 for two years. 30-year bond issue that the city has Bob Thibodeau, senior co-chair- financing is arranging enough 215 jobs indirectly at other Outside U.S.A., add $48 per year to out-of-state rate for surface mail. been repaying. The Red Wings lease man of the North American Interna- suites, from which revenue is not state companies and gener- Reprints: For inquiries call the reprints with the city of Detroit ends in De- tional Auto Show, which is the sin- shared with the league but goes di- ate more than $197 million department at: (800) 494-9051, Ext. 144 , or at [email protected] cember 2009. Joe Louis Arena, with gle largest user of Cobo and an rectly to the team. in personal income for CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 steep concrete steps leading into the advocate for expansion or replace- And there are some creative op- Michigan workers over the is published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. arena, has not always been well re- ment of the facility. tions available, Miklojcik said. For life of the credit. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send ceived by fans. “Ideally, if you could tear down instance, if the city could sell Joe The city of Ann Arbor has address changes to CRAIN’S DETROIT BUSINESS, “I would not throw another $200 Cobo Arena, and if Joe Louis Are- Louis to a private entrepreneur, approved a five-year tax Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in million down the drain at renovat- na could either be incorporated or that money could be applied to fi- abatement of $31,990 for Xo- U.S.A. ing that building,” Hotujac said. torn down into a new section of nance a new arena. ran. Entire contents copyright 2006 by Crain Communications Inc. All rights reserved. Chris Ilitch’s parents, Mike and Cobo Hall, that’s going to get you Brent Snavely: (313) 446-0405, Tom Henderson: (313) 446- Reproduction or use of editorial content in any Marian Ilitch, bought the Red an enormous amount of space,” [email protected] 0337, [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 06-19-06 A 34 CDB 6/16/2006 6:16 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS June 19, 2006 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 10-16

Cassis, who’s seeking re- 6 request to U.S. Bankrupt- gan Comprehensive Cancer election in the Senate but U.S. Steel in cy Judge Allan Gropper to ab- Center opened a chemothera- Karmanos: was at one time interested rogate the contract and al- py and infusion center in in the governor’s post, said low it to impose new terms. Canton Township. she’d be “honored” to be compliance Also, pilots ousted union ■ Walgreens said it would considered. Chairman Mark McClain af- stop filling prescriptions for Hockey ‘a lot Butler hasn’t been ap- ter tough negotiations led to members of the Dearborn- proached for the spot “and after emissions a 24 percent cut in pay and based Midwest Health Plan on even if someone were to ap- other concessions. The Air July 1 because of inade- proach him, he would say to Line Pilots Association ended quate reimbursement rates. settlement ■ more fun now’ them that he’s planning on voting on a new chairman, UBS Financial Services being the U.S. Senate nomi- but as of 5 p.m. Friday had Inc. signed on to be a lead ockey is fun, now, ter the first few playoff nee,” said his spokesman, he Michigan Department not announced a successor. office tenant in the 325 N. for Peter Karmanos games. “We’re going to do Dave Doyle. of Environmental Quality ■ A survey released by Old Woodward Ave. build- H Jr., co-owner of the very well financially.” T said that U.S. Steel San Diego-based Vistage In- ing in downtown Birming- Carolina Hurricanes, which Karmanos wasn’t plan- Corp.’s Great Lakes Works has ternational Inc., formerly TEC ham. had a chance to win the ning to be in Edmonton for Financial Crunch completed its air-quality International, found that 60 ■ The former Bob-Lo Stanley Cup Saturday night Saturday’s game. He attend- has a sweet goal compliance program on percent of metro Detroit ex- boat Columbia has been in Edmonton. If the Edmon- ed the two previous games schedule as required in a ecutives think their sales purchased by a nonprofit ton Oilers won Game 6, the in Edmonton but said the Grosse Pointe Farms na- 2005 consent order. will increase and 62 percent group, the S.S. Columbia Pro- final game of the series will verbal abuse from fans is tive Lisa Nalen after 20 years Great Lakes agreed to in- think their profitability will ject, which plans to restore be tonight in too much to take. has decided to redevelop stall air filters to control increase during the next 12 it and operate it on the Hud- Raleigh, N.C. “It took all my and re-market her product, emissions at the Zug Island months, even though only 37 son River in New York, the The last time willpower to just sit Financial Crunch, through facility in River Rouge, and percent of Detroit area exec- Detroit Free Press reported. the Hurricanes there and listen to it,” her company, New Jersey- upgrade existing equipment utives believed that U.S. eco- ■ A jury ruled that Jim Di- made the Cup fi- he said Friday. “If we based Sweet Assets Inc. at its main plant in Ecorse. nomic conditions would im- amond, owner of Ghetto nals, getting win it in Edmonton, Nalen developed Finan- The consent order, prove within the next year. Recorders studio in Detroit, beat by the De- c’est la vie. There will cial Crunch in the early ’80s reached in February 2005, The study was based on re- had no legal claim to copy- troit Red Wings plenty of parties in with two college friends, Jay resolved violations of state sponses gathered May 15-24 rights for two White Stripes in 2002, Kar- Raleigh and here I can Hunter and Tom Matthews, and federal regulations and from businesses with rev- albums recorded there, the manos told go to. And if it goes who are also from Grosse permit limits involving ex- enue between $1 million and Detroit Free Press reported. Crain’s that if Karmanos back to Raleigh, I’ll be Pointe Farms, and saw cessive emissions of partic- $1 billion. ■ The city of Huntington he had it to do all over there.” great success. ulate matter from the U.S. ■ MotorCity Casino L.L.C. re- Woods wants to buy and again, he wouldn’t have The company took a 20- Steel facility, the MDEQ ported more than $38.1 mil- preserve the Rackham Golf bought the hockey team in And the nominees are … year hiatus while Nalen said last year when the lion in revenue for May, a 5 Course from the city of De- 1994; he’d have put the mon- and partners pursued other agreement was reached. percent increase compared troit for $5 million, the ey into cancer research in- If Gov. Jennifer Granholm career goals. In 2004, Nalen U.S. Steel also agreed last with the same month last same price private develop- stead. He was disgruntled wins in the election in No- bought out Hunter and year to pay $950,000 to the year. MGM Grand Detroit ers have offered for it, The over the high cost of vember, she’ll have Lt. Gov. Matthews. She produced state and is subject to fines L.L.C., with $39.2 million for Detroit News reported. John Cherry salaries and, as a business- at her side for a the product in 2005. of $5,000 per violation per May, was off from last year’s ■ Ann Arbor-based 20/20 man who co-founded Com- second term. Financial Crunch is a day for future violations. monthly total by 0.6 percent, Communications L.L.C. has Still in the works is a puware Corp., frustrated at chocolate-crunch coin with while Greektown Casino L.L.C. been picked as lead vendor partner for Republican losing $12 million to $16 a bite taken out of it and the reported nearly $30 million for Wireless Washtenaw. businessman Dick DeVos. ON THE MOVE million each year. words “Bite Back” written in revenue, down 1.25 per- ■ The University of Michi- Early speculation in- ■ But a lockout by owners on each piece. The candy John Englar to the board cent from May 2005. gan Board of Regents voted to cludes: Oakland County that canceled the 2004-2005 comes in a tin of 11 pieces, a of directors of Troy-based ■ The Michigan Gaming extend the contract of Presi- Clerk and former state rep- season and led to a salary “Banker’s Dozen,” and sells Delphi Corp., effective July Control Board said that dent Mary Sue Coleman resentative Ruth Johnson; cap for the current season for about $20. 18. He is an executive in restaurants doing more through July 31, 2012. state Sen. Nancy Cassis, R- — the players’ share of rev- Farms Market in Grosse residence for Duke than $200,000 in free-meal ■ A federal appeals court Novi; Michigan Health & Hos- enue went from about 76 Pointe Farms and Perfect University’s Fuqua School of business from casino in Cincinnati, saying it had pital Association senior vice percent to 54 percent — fi- Day in Paradise in Harbor Business, in Durham, N.C., comps still need a casino- no jurisdiction, declined to president of business health nally made it possible to Springs are the only two and the Bryan School of Busi- supplier license, the Detroit hear a Blue Cross Blue Shield initiatives Nancy McKeague; make money. “I feel much Michigan-based retailers, ness at the University of North Free Press reported. of Michigan appeal regard- U.S. Senate contender Keith better about it. It’s actually but Nalen said she plans to Carolina in Greensboro. ■ Michigan’s unemploy- ing a 2003 lawsuit filed by Butler, founding pastor of a real business. And it’s a expand in the state. Englar is not Michigan’s ment rate dropped to 6 per- seven Oakland County ob- the Word of Faith Internation- real partnership with the “I love Michigan, and it’s former governor. cent in May, the Michigan stetricians and gynecolo- al Christian Church in South- players. Before, it was ad- where I originally came up ■ Freman Hendrix to board Department of Labor & Eco- gists in federal court in De- field; and AT&T Michigan versarial, which was with the idea,” she said. “I chair of the Southeastern nomic Growth said, due troit, pushing the case back President Gail Torreano. ridiculous. I didn’t get in- want to get as many retail- Michigan Chapter of the Ameri- mainly to a decrease in the to a federal court. Torreano couldn’t be volved in a team to have a ers in Michigan as possible can Red Cross, effective July state’s labor force. It had ■ Detroit City Council reached for comment and UAW-auto company rela- to sell the product.” 1. He replaces Neil Bristol, a been 7.2 percent in April voted to approve a $300 fee Johnson said she wouldn’t tionship,” said Karmanos. The idea came about 20 partner at Pricewaterhouse- and 6.8 percent in May 2005. for garbage collection, the comment on “rumors and “It’s a lot more fun now.” years ago when Nalen was Coopers L.L.P., who will re- ■ Ron Gettelfinger, re- Detroit Free Press reported. speculation” and is focused Karmanos said the team lacking credit at home, main on the board. elected president of the Unit- The measure must still be on her current job. McK- was close to breaking even school and the bank, realiz- ■ Richard Sorensen to the ed Auto Workers, was given approved by Council after eague said only that such during the regular season ing she was in a “financial board of Troy-based Soma- the Joseph A. Beirne Com- public hearings. talk is “a compliment.” ■ and went into the black af- crunch.” netics Corp. He is a financial munity Service Award by The University of Michi- adviser with UBS Financial United Way of America. The gan received a $3 million do- Services Inc. in Troy. award is given each year by nation from Citigroup Inc. United Way of America in Chairman Emeritus Sanford RIEFLY recognition of a labor Weill and his wife, Joan Weill. B leader who has rendered Small biz doesn’t equal small reach ■ J&L of America Inc., a outstanding volunteer ser- OBITUARIES Southfield-based distribu- vice to United Way. ■ Lately, I’ve been reading up on small hours? The Web site getharvest.com tor of hand and machine Also, Gettelfinger select- Richard Baidas, owner business (aside from the players in offers free time- and project- tools, abrasives and other ed vice presidents Cal Rap- and president of Wixom- this week’s issue, Pages 11-18) and management software that features equipment, has been ac- son to head GM negotia- based General RV Centers, the almost infinite reach of the “little some pretty fancy upgrades if you’re quired by MSC Industrial Di- tions, Bob King to head Ford died of cancer June 5. He guy” when they move online. willing to shell out some green. rect Co. Inc. of Melville, negotiations and General was 58. ■ It’s never been easier to customize Don’t trust the 25-year-old Web guy? N.Y., for $349.5 million. Holiefield, who was just elect- John Church, who had your business with online tools; a lot You can trust, John Jantsch over at ■ Northwest Airlines Corp. owned Midwestern Processes of them are cheap, and many are ed vice president, to head Duct Tape Marketing and its flight attendants the Chrysler department, Inc. in Madison Heights, died free. (ducttapemarketing.com/ union on Monday agreed to of natural causes May 29. He Need to make a conference call weblog.php). Jantsch has a lot of The Detroit Free Press re- continue to try to cobble to- ported. New Vice President was 83. overseas or even down the street? great ideas geared to small ■ The folks at skype.com will let you do businesses, and he focuses on gether a new contract by James Settles will lead the Nicholas Yaksich, vice it for free through Internet phone WEB WORLD economical, high-impact tools that June 30. aerospace and agriculture president in charge of sales lines. Daniel Eizans can be quickly incorporated into any Until then, the flight at- division, while new Vice and co-owner of Glanz & Kil- Are you a dot-com or a small businesses marketing campaign. tendants have promised not President Terry Thurman will lian Mechanical Contracting in business with employees in different locations It’s not the size of the business; it’s the size to strike and Northwest has lead organizing efforts. Detroit, died of colon cancer that needs to organize their time and work of the drive behind it. stepped back from its June ■ The University of Michi- June 10. He was 68. DBpageAD.qxd 6/9/2006 1:51 PM Page 1

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