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www.crainsdetroit.com Vol. 27, No. 4 JANUARY 24 – 30, 2011 $2 a copy; $59 a year

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Page 3 One D dissolves, hands off Snyder stirs DRIC jobs debate projects to partners

BY BILL SHEA highly attractive economic development One of the leading justifications for CLOSER LOOK CRAIN’S BUSINESS proposal” that includes the $5.3 billion DRIC, beside bolstering trade and safety International Crossing, which redundancy, is what its proponents say Background and Republican Gov. Rick Snyder’s sur- he says won’t saddle with debt. will be the creation of 10,000 construction more: Bridge prise endorsement last week of the pro- DRIC has been a contentious proposal, jobs on the Michigan side of the river facts, figures and forecasts, posal to build a new bridge over the De- drawing ongoing legal challenges from and preservation or creation of 25,000 to Page 20 troit River is expected to renew the Ambassador Bridge owner Manuel “Mat- 40,000 other jobs once the span is com- Funding: Snyder debate over the merits of the project — ty” Moroun — who says the new bridge plete. deal with including highly touted job forecasts would be unfair government competition A 2008 online FAQ about the DRIC Washington used to promote the bridge’s necessity. and unneeded because border traffic re- study offers the warning that if no new could drive In his first State of the State address mains at half its 1999 peak — and skepti- border crossings are built: “The econom- project, Page 20 since winning the job in November, Sny- cism from both infrastructure industry in- der promised a “totally revamped and siders and Republican lawmakers. See DRIC, Page 20

Breakthrough for Broderick: MEDC plans Financing revives project

Inside to place staff IDEA Detroit conference aims to get wheels turning, around state Page 5 Goals: Efficiency, Crain’s Lists coordination BY AMY LANE Livingston and Washtenaw CRAIN’S DETROIT BUSINESS in time Newly named Michigan Economic counties’ largest employers, Development Corp. President and Pages 12, 13 CEO Michael Finney said the state’s revamped strategy for eco- 5 years later, prep for big game yields dividends nomic development includes plac- BY NANCY KAFFER ing MEDC staff in offices spread This Just In around the CRAIN’S DETROIT BUSINESS state. The years leading up to Super Texan has plans for Novi’s In a Friday in- Bowl XL were a flurry of activity Twelve Mile Crossing terview after as business and civic leaders pre- Gov. Rick Sny- pared Detroit for the internation- A Texas real estate in- der’s State of the al crowd that would attend the vestor has bought Twelve Mile State speech on game. Crossing at Fountain Walk, the Wednesday, From 2000, when the city’s bid to 77-acre, bank-owned retail Finney said he host the game was successful, until and entertainment complex hopes to have the weekend of the game in 2006, a in Novi. eight to 10 such Finney team of more than 400 metro De- The property, built for $72 locations by troiters worked to prepare the city. million in 2002 by Newport year’s end as part of the MEDC’s Five years later, some of the Beach, Calif.-based PLC Com- improvement plans. The staff team’s work endures — namely, a mercial Inc., went through a would be housed in offices of local cleaner downtown, fewer derelict 2005 Chapter 11 bankruptcy or regional groups that promote structures, a crop of new down- before it was sold to Chicago- economic development. town businesses and a greater fo- based Arthur Hill & Co. to be re- Other priorities include improv- cus on by some developed. ing business retention efforts, in the business community. After Arthur Hill default- serving as an information best- Preparation for the Super Bowl ed on its loan, the lender — practices clearinghouse, support- brought together a team with a Horsham, Pa.-based Capmark ing entrepreneurs and broadening massive to-do list of pregame Financial Group — took the the state’s 21st Century Jobs Fund. work, led by Super Bowl XL host property over and has oper- Finney, also group executive for committee ated it since July. economic growth, said embedding chairman San Antonio-based Spigel MEDC staff to work full time in lo- Roger Penske. COURTESY OF DOWNTOWN DETROIT PARTNERSHIP cations around the state will en- Successful See This Just In, Page 2 “Wayfinder” signs installed for Super Bowl XL in 2006 are still in place — now See MEDC, Page 19 management of maintained by Clean Downtown crews, also part of the Super Bowl legacy. the pregame preparations said Susan Sherer, who prepared Lasting legacies also counted as the city’s Super Bowl bid package one of the and served as executive director Highly visible is the Motown brightest spots of the Super Bowl XL host com- Winter Blast festival, which in the tenure of mittee, now CEO of The Heat and launched a year before the game Sherer disgraced for- Warmth Fund. “We took our obliga- in an attempt to create density mer Detroit Mayor Kwame Kil- tions and said, ‘This is what we’re downtown. patrick. obligated to, this is what we want “For the physical environ- NEWSPAPER “There are no instructions,” to do.’ ” See Super Bowl, Page 18 20110124-NEWS--0002-NAT-CCI-CD_-- 1/21/2011 5:57 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 24, 2011

nology incubator center at the energy systems at 24 school dis- Arena, home of the Wolverines’ Loft owner Midtown THIS JUST IN University of Michigan’s North Cam- tricts. The projects have generated men’s and women’s basketball pus Research Complex. more than 40,000 kilowatt-hours of teams. files for Chapter 11 ■ The 16,000-square-foot facility solar and wind power. The expansion will add about From Page 1 Midtown Development Group Inc. officially opened last week on the — Jay Greene 63,000 square feet for new fan en- has filed for Chapter 11 bankrupt- Properties closed on the deal Fri- grounds of the 174-acre, 30-build- trances, additional retail spaces cy protection in U.S. Bankruptcy day, said owner Stanley Spigel. He ing former Pfizer Inc. campus in and ticket areas, as well as a pri- Caraco wins drug fight, Court, Eastern District of Michigan. would not disclose the price but Ann Arbor. It will offer space for vate club space, the university Midtown Development owns said it was purchased in cash. up to three years to companies but appeal expected said in a statement. and operates three Midtown De- With 6 million square feet of spun off from UM by the school’s All seating will be replaced and A federal judge in Detroit has troit loft projects: Willys Overland property owned across the coun- tech transfer office. given Caraco Pharmaceutical Labo- improvements will be made to ac- try — and no debt on any of it — The first tenant is Life Magnetics cess for people with disabilities. Lofts, Springfield Lofts and Stuber- ratories news that could pave the Stone Lofts. Spigel said Fountain Walk is the Inc., a medical-diagnostics compa- way for the company to market a The project will be funded by type of property that can be very ny. Four other companies are ex- the athletic department budget Midtown lists four creditors on generic version of the Type 2 dia- court documents: Bank of America, successful when purchased at a pected to move in over the next betes drug Prandin. and gifts, the school said. low price. He said the retailers, few weeks — Phrixus Pharmaceuti- Bloomfield Hills-based TMP Ar- for a $1.3 million loan; the Detroit A spokesman for Novo Nordisk Economic Growth Corp., for a restaurants and entertainment cals Inc., EngXT LLC, 3D Biomatrix A/S, the Denmark-based pharma- chitecture Inc. and Denver-based $300,000 loan; Invest Detroit, for a tenants have high sales and the LLC and Civionics LLC. The incuba- ceutical company that holds the Sink Combs Dethlefs will design $20,000 loan; and the Wayne center is in a strong location near tor is expected to house about 15 patent for Prandin, said the com- the project. They previously de- County treasurer, for $35,452 in 12 Mile and Novi roads. startups, which will have access to pany would appeal the decision signed the $23.2 million Basket- taxes. Anchor tenants are Dick’s Sport- three mentors in residence provid- by Judge Avern Cohn of the U.S. ball Player Development Center, The company has between ing Goods, Great Indoors, Emagine ed by the tech transfer office. District Court for the Eastern District which opens this year. $1 million and $10 million in as- cinema, Lucky Strike and Bar Louie. — Tom Henderson of Michigan. The regents also unanimously sets, according to court docu- “We’re getting this at a good After a six-year legal battle, approved a $20 million plan to in- ments. price, so we’ll be able to work Energy Works Michigan wins Cohn ruled that Novo’s patent on stall high-definition video score- with tenants and be very compet- both Prandin and PrandiMet is boards at Michigan Stadium, President Bob Slattery declined itive,” he said. “And since there’s $4.4M schools contract invalid. Caraco had challenged Crisler Arena and Yost Ice Arena. to comment. no lender involved, I can have a — Bill Shea — Nancy Kaffer Ann Arbor-based Energy Works the validity of the patent. lease out to someone tomorrow.” Michigan has been awarded a While the efforts are ongoing, Spigel expects to fill two vacant $4.4 million contract to promote Caraco said it is unable to predict buildings and find users to build CORRECTIONS energy efficiency and assist in when manufacturing and distrib- new buildings on vacant land. Ⅲ A story on the state’s new Venture Michigan Fund in the Jan. 17 issue the installation of solar photo- ution will resume in Detroit. Capmark was represented by should have said the size of the 21st Century Investment Fund was voltaics, solar thermal and wind — Jay Greene Southfield-based NAI Farbman. $109 million. systems in 90 Michigan schools. — Daniel Duggan Ⅲ A story on Page 4 of the Jan. 17 edition erroneously stated that most The three-year contract was Crisler Arena renovations of the claims in a 2010 art buyers’ lawsuit against Park West Galleries awarded by the Michigan Public Inc. were dismissed. Two of the claims were dismissed, while a third Service Commission. lead UM athletic projects UM tech incubator gets was limited in scope, but another nine of the 12 original plaintiff During the past two years, the The University of Michigan Board claims survive the ruling. Also, the story should have attributed the 1st tenant; 4 on the way Michigan Renewable Schools Pro- of Regents last week approved the ruling to Oakland County Circuit Judge Wendy Potts. The first tenant has moved into gram, operated by Energy Works, $52 million second phase of reno- Ⅲ The Other Voices column on Page 6 of the Jan. 17 issue gave an in- the new Venture Accelerator tech- has helped to install 30 renewable vations and expansion of Crisler correct first name for author Burton Zipser.

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January 24, 2011 CRAIN’S DETROIT BUSINESS Page 3 One D dissolves; work goes on Focus: Innovations Detroit Metro Convention & Visitors Other groups take on scorecard, projects Bureau; Detroit Regional Chamber; the former Detroit Renaissance Inc., BY SHERRI WELCH the latest version today. Interest in One D’s collaborative which is now Business Leaders for CRAIN’S DETROIT BUSINESS Data Driven Detroit launched as work has steadily increased among Michigan; New Detroit; and the Unit- a foundation-funded nonprofit cen- nonprofits, One D Chairman Edsel ed Way for Southeastern Michigan. In the spirit that it was created, ter for data collection and analysis Ford II said in a statement. The Southeast Michigan Council of One D, a 4-year-old collaboration of in late 2009 under director Kurt Given that, the constraints local Governments later joined the collab- civic groups working on regional Metzger. Its mission is to trans- funders face and the spirit in oration, and several local founda- revitalization, has form data into information that which One D was established, “It tions stepped up with funding, in- RANKINGS dissolved because will drive better decision-making. is the appropriate time to transi- cluding the Community Foundation other groups are One D also has moved two other tion the work to our partners, who of Southeastern Michigan, Hudson- 2010: How equipped to carry initiatives on corporate philan- can take it further, faster than One Webber Foundation, Kresge Founda- Accuri founder’s new spinoff: Detroit fared, on its work. thropy and talent attraction/reten- D can.” Page 21 tion, McGregor Fund and Skillman The collabora- tion to groups in those areas. Ford convened One D in the fall Foundation. New lube technology, Page 9 tion has trans- One D Executive Director Kat of 2006 to bring together parallel ef- After bringing together duplica- ferred responsibility for its annual Owsley has taken a position with forts to revitalize the region and to tive efforts such as Detroit Re- regional scorecard to Data Driven the Troy-based Kresge Foundation, encourage collaboration among naissance’s “Road to Renais- Detroit, which helped develop the working on Detroit initiatives the group’s founders: the Cultural Company index scorecard and planned to release there. Alliance of Southeastern Michigan; See One D, Page 21 These organizations appear in this week’s Crain’s Detroit Business: Accuri Cytometers ...... 9 AFA Krause ...... 17 Associated Builders & Contractors of SE Michigan 20 Law firms Automation Alley ...... 19 Bank of America ...... 19 Blue Cross Blue Shield of Michigan ...... 16 Business Leaders for Michigan ...... 3 Chase Bank ...... 19 grow but Cornerstone Development Authority ...... 4 Cultural Alliance of Southeastern Michigan ...... 3 Data Driven Detroit ...... 3 Detroit Economic Growth ...... 18 don’t hire Detroit Metro Convention & Visitors Bureau ...... 3 Detroit Regional Chamber ...... 3 Detroit River International Crossing ...... 1 Dickinson Wright ...... 21 Domino’s Pizza ...... 17 in 2010 Dover Realty Advisors ...... 19 Downtown Detroit Partnership ...... 18 BY CHAD HALCOM Dykema Gossett ...... 21 CRAIN’S DETROIT BUSINESS Ford Motor ...... 10 Fusion Coolant Systems ...... 9 There never has been a year Goodwill Industries ...... 18 like 2010 at Howard & Howard At- torneys PLLC, Greater Detroit Building & Construction Council. . . 20 at least since Henry Ford Physician Network ...... 16 Mark Davis Howard & Howard Attorneys ...... 3 became its Invest Detroit ...... 19 president JC Beal Construction ...... 19 Jet’s America ...... 17 JOHN SOBCZAK and CEO. Fred Beal, president of JC Beal Construction Inc., worked with building owner Mike Higgins in 2005 to jump-start The Royal Johnson Controls ...... 8 redevelopment of the David Broderick Tower in Detroit. Oak-based Kraemer Design Group ...... 19 business law Lawrence Technological University ...... 11 firm added Marketing Resource Group ...... 20 1,021 clients Medical Network One ...... 16 Davis during the Michigan Department of Transportation ...... 11 Breakthrough for the Broderick year and grew revenue to nearly Michigan Economic Developers Association ...... 19 $45 million, up from $37.9 million Michigan Economic Development ...... 1 in 2009 and around $25 million in Michigan Nonprofit Association ...... 21 New financing options revive long-stalled project 2005. It was the largest year-over- Miller Canfield Paddock & Stone ...... 21 year improvement at the firm in Motown Construction Partners ...... 19 BY DANIEL DUGGAN “This has been a long time com- recent history. Revenue per at- North American International Auto Show ...... 8 CRAIN’S DETROIT BUSINESS ing,” said Mike Higgins, whose torney also increased over the One D ...... 3 In 1986, nothing family has owned the building previous year. Paramount Precision Products ...... 10 While most redevelopment pro- “ since 1974. “And it illustrates how Drivers of growth included a Penske ...... 18 jects are in the works for two or other than the roof difficult it is to finance a project recovering U.S. auto industry Tooles Contracting Group ...... 4 three years, the redevelopment of like this. It’s only possible with the (Howard & Howard handles Trillacorpe Construction ...... 4 the David Broderick Tower in De- antennas and the new financial tools available in the some real estate work for Chrysler University of Michigan ...... 9 troit has been in progress for 27 past couple years.” Group LLC), a mild pickup in years. restaurant were Built in 1928, the Broderick Tow- mergers and acquisitions and re- Known most recently for a er spent more than 50 years as an newed business interest in pro- Department index stalled 2005 plan, the 35-story leased. office building. It comprised most- tecting intellectual property. building has a notable history of ” ly small offices used by dentists The new year is also off to a BANKRUPTCIES ...... 4 derailed renovation plans. Mike Higgins, and doctors, a much different lay- strong start, Davis said. BUSINESS DIARY ...... 14 The idea of turning the historic building owner “I’d be really surprised if we out from the typical 30,000 square CALENDAR ...... 14 office building into residential did another ($7 million growth feet of open space on each floor in a CAREERWORKS ...... 15 space dates back to 1984 with a pro- modern building. year) again,” he said. “But I’m ject that fell through by 1986. In spring 2012 for the building’s new The Higgins family operated it pleasantly surprised by the vol- CLASSIFIED ADS ...... 16 fact, nearly one-third of the 83- use as a 127-unit apartment com- at about 50 percent occupancy un- ume of transactions in the KEITH CRAIN...... 6 year-old building’s life has been plex, the building’s owners and de- til 1984, Higgins said, when the fourth quarter, carrying over LETTERS...... 6 velopers are breathing a sigh of re- spent vacant. MARY KRAMER ...... 7 With occupancy planned by lief. See Broderick, Page 19 See Law firms, Page 21 OPINION ...... 6 OTHER VOICES ...... 6 All in the family Nominate someone PEOPLE ...... 15 Crain's is always up to something when it comes THIS WEEK @ See what else is happening at Crain's sister RUMBLINGS ...... 22 publications with our Best of Crain's section on the to recognizing achievers. Check upcoming WWW.CRAINSDETROIT.COM Web at crainsdetroit.com/section/BestOfCrains deadlines at crainsdetroit.com/section/nominate STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 22 20110124-NEWS--0004-NAT-CCI-CD_-- 1/21/2011 5:59 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 24, 2011

UM-Dearborn and Crain’s Detroit Business present StageTwo Strategies Sustainability in A weekly look at problem-solving by growing companies. Health Care Management TOOLES CONTRACTING GROUP LLC Join us as we explore best practices, standards and initiatives launched by the health care industry to achieve sustainability. Location: Detroit Solution: Tooles developed a old, and we didn’t have a lot of Description: General contractor, partnership with an established processes in place, so we were try- equipment installation and con- federal contractor. ing to both create them and also William R. Alvin Breakfast and Discussion struction management company. “We were able to partner with get the new and current staff to Health Alliance Plan February 8, 2011 President: Damon Tooles Jacobs Engineering Group (in Arling- use them,” Tooles said. Vernice Davis Anthony 7:30 a.m.–10:00 a.m. Founded: 2006 ton, Va.),” Another problem was the finan- Greater Detroit Area Health Council Fairlane Center North Employees: 40 Tooles said. cial burden associated with bring- Our Panelists Joseph T. Aoun Quad E Revenue: $38 million in 2010, “We worked on ing on new staff. with $46 million projected in 2011. a Federal Aviation “I was saying let’s just do more Nuyen,Tomtishen and Aoun, P.C. 19000 Hubbard Drive Problem to be solved: After four Administration fa- work with less employees,” Dearborn, MI 48126 Malcolm Henoch, MD years of getting steady work, cility in At- Tooles said. “Well, I finally said Oakwood Healthcare $35 per person Tooles Contracting Group LLC real- lanta, where we we can’t do that anymore. You’ve Daniel Wakeman ized it no longer could rely on the completed $4 got to go out and hire the right St. Luke Hospital same industry sectors and needed million worth of people, enough people, and ex- to go after federal contracts. work.” pend those dollars.” Moderated by: Mary Kramer, The FAA job, Expert opinion: Larry Goss, COO Publisher of Crain’s Detroit Business Tooles Tooles Contracting Group’s Tooles said, led of Bingham Farms-based Trilla- clients include General Motors Co., to work with Jacobs for Amtrak in corpe Construction LLC, said he’s For more info or to register online, Ford Motor Co., DTE Energy Co. and 14 states on 163 sites where Tooles not surprised that Tooles’ federal visit umd.umich.edu/sustainability_lecture FedEx. One of its more recent pro- Contracting has the design-build contract work was predicated on jects was working with Bingham contract. finding the right partner. Trilla- Farms-based Sachse Construction “We now have the résumé to do corpe also specializes in govern- and Development Corp. to serve as the work,” Tooles said. ment contracts. general contractor for the $18 mil- Risks and considerations: Tooles He said past performance with lion in renovations and interior Contracting closed its Las Vegas the federal government is one of design work in the Guardian operation in early 2010, which re- the most important ingredients Building in Detroit. duced its operating costs by about for success. But “we wanted to start pursu- 40 percent. “Until you do that, you’re going ing some federal government But when the company jumped to have a lot of challenges to win work,” said Damon Tooles, presi- to federal contracting, payroll and new work,” Goss said. “Tooles dent and CEO. “We did the (U.S. personnel expenses jumped to has found out that federal con- Small Business Administration) cer- about 60 percent of its budget. tracting is all about strategic part- tification, but one of the things “We’ve had growing pains,” nerships — strategic alliances are that the government looks at is Tooles said, “but these have been important.” past performance, and we didn’t good growing pains.” Trillacorpe’s expansion fol- have that.” Tooles found that a significant lowed a similar path, Goss said. Tooles needed to create a work problem was bringing on 25 em- “We started in 2007, and we’ve history so his company could pur- ployees in six months and inte- liked to say we’ve cracked the code sue federal government work as a grating them into its workforce. in federal contracting,” he said. general contractor. “The company is just four years — Shawn Wright

If your company has recently made a tough business decision, contact Jennette Smith, deputy managing edi- tor, at [email protected]. For more news and information, visit crainsdetroit.com/getemail to receive Crain’s twice-monthly e-mail dedicated to growing companies.

Southfield development authority targets health care biz

BY CHAD HALCOM Dialysis Center and a CSL Plasma said. That could include insurers, CRAIN’S DETROIT BUSINESS center. medical-device manufacturers and The authority also expects a even information technology or Southfield’s Cornerstone Develop- physical-therapy office to move to staffing companies with a health ment Authority today will launch its the district soon. care industry focus, as opposed to Southfield Healthcare Corridor, Aceves said more than 350 adding new nonprofit hospital cen- an alliance of health care employ- health care employers have loca- ters. ers that will try to court for-profit tions in Southfield. Chad Halcom: (313) 446-6796, businesses to the redevelopment The corridor will collaborate [email protected] district. with Oakland County’s Medical Executive Director Al Aceves Main Street Program, an alliance said the authority is forming a of hospitals, universities, pharma- WEBCAST EVENT health care advisory committee to ceutical companies, medical de- Data Privacy and Security: be overseen by a board of its mem- vice manufacturers and medical ber health care employers, which professionals. The alliance was BANKRUPTCIES Limit Exposure and Penalties will oversee economic attraction founded in 2008 in a coordinated and try to streamline local govern- business development campaign The following businesses filed for ment approvals. that could create up to 45,000 jobs Chapter 7 or 11 protection in U.S. Thursday, January 27, 2011 Bankruptcy Court in Detroit Jan. 14- The corridor also will include an in health care by 2018. Noon to 1:00 p.m. EST 20. Under Chapter 11, a company files “economic gardening” strategy fo- “It fits in well with the Main for reorganization. Chapter 7 involves RSVP: Call 1.800.847.6424 or cusing on local business expan- Street initiative, and it helps that liquidation. visit www.mcdonaldhopkins.com sion. Aceves said organizers also Southfield has built on it and East Holly Oil Inc., 8435 E. Holly Road, would like to pursue a health- looked at what they can do specifi- Holly, voluntary Chapter 11. Assets Attorneys on a Mission® themed business incubator or ac- cally,” said Maureen Donohue and liabilities not available. celerator. Krauss, director of economic de- Badran Investment LLC, 8435 E. Holly Your mission is our mission. At least a dozen businesses relat- velopment and community affairs Road, Holly, voluntary Chapter 11. As- We never lose sight of it. ed to health care account for more for Oakland County. sets and liabilities not available. than 6,000 jobs within the 1.5- The district “really focuses Midtown Development Group Inc., square-mile district, which falls more on the service end of the in- 4147 Cass Ave., Suite 200, Detroit, vol- untary Chapter 11. Assets and liabili- mainly between Northwestern dustry, from what I’ve seen, at ties not available. Highway and Greenfield Road from least at its core. But business that ® Sokovic Holdings Corp., 15255 Wind- A business advisory and advocacy law firm Eight Mile Road to Mt. Vernon operate near the core, like vendors mill Drive, Macomb Township, volun- 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 Street, Aceves said. to supply senior living centers or tary Chapter 7. Assets: $25; liabilities: Carl J. Grassi Stephen M. Gross They include St. John Providence hospitals, could fit.” $253,877. President Detroit Managing Member Hospital, a Southfield office of De- The city and its development au- FGR Enterprises, 2411 Vinewood, De- troit-based Health Alliance Plan with thority actively will target for- troit, voluntary Chapter 11. Assets Chicago • Cleveland • Columbus • Detroit • West Palm Beach more than 450 employees, the profit health care employers for at- and liabilities not available. www.mcdonaldhopkins.com 10,000-square-foot Northland Park traction or expansion, Aceves — Shawn Wright 20110124-NEWS--0005-NAT-CCI-CD_-- 1/21/2011 5:15 PM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 5 IDEA Detroit aims for big thoughts Innovators, inventors, social en- Henry Ford. voted to placing minority musi- trepreneurs and marketers will “Detroit has a heritage and vi- cians in top orchestras. headline the first-ever IDEA De- tality in its people,” Dougherty Also speaking at the conference troit conference March 23, spon- said. “I had wondered, in some will be Josh Linkner, founder of sored by Crain’s Detroit Business ways, whether there would be a ePrize and fund manager for Quick- and its New York-based sister pub- challenge doing an event in De- en Loans Inc. founder and Chair- lication, Advertising Age. troit and finding creative people in man Dan Gilbert’s venture capital The confer- the area. But I found that there are fund, Detroit Venture Partners, ence, modeled af- lots of young people doing interest- aimed at seeding early startups in INTERESTED? ter Ad Age’s ing work and showcasing it.” digital technology and digital mar- Sign up: For IDEA conference IDEA Detroit will feature social keting. registration held the past five entrepreneurs like Veronika Scott, “Detroit is creating some buzz — information, years in Manhat- a College for Creative Studies stu- a rebounding auto industry, social crainsdetroit tan, will feature dent who designed a coat for the entrepreneurs who are carving .com/events 14 speakers talk- homeless that doubles as a sleep- their own paths in the city and in- ing about a spe- ing bag/shelter, using products novative ways to attract new resi- cific product, innovation or trend. from two Michigan companies — dents to Midtown,” said Crain’s IDEA Detroit is geared for mar- Tyvek from Midland-based Dow Publisher Mary Kramer. “This is keters, investors, entrepreneurs, Corning Corp. and fleece from Dear- the perfect time for a conference academics and social-change born-based Carhartt Inc. like this.” agents from Southeast Michigan Cynthia Koenig, a University of The event will be at the A. Al- and will be promoted by both pub- Michigan MBA student, is another fred Taubman Center for Design, lications to those groups in the social entrepreneur who will be at at the College for Creative Studies Midwest. the conference. Koenig founded in Detroit. Dale Dougherty, founder of Ann Arbor-based Wello, which Maker Faire and editor of Make manufactures and distributes the magazine, will be among the fea- WaterWheel, a 20-gallon drum that tured speakers. can be pushed like a baby stroller “I always think it’s really inter- and transports four to five times esting connecting a lot of different the amount of fresh water as tradi- people together who realize the tional methods of collecting water overlap of ideas,” Dougherty said. in small villages in developing “We’re thinking similar ideas, and countries. we can help each other.” Other speakers include David Dougherty’s Maker Faire — a Morrow, founder of Warren-based two-day festival celebrating the sporting goods firm Warrior Sports arts and the do-it-yourself mindset Inc.; Eric Ryan, a na- — is held in a handful of U.S. cities tive and co-founder of Method, and was at for the maker of eco-friendly household first time in 2010. Last July’s event and personal care products; and drew more than 18,000 visitors and Aaron Dworkin, founder of Sphinx, is returning again this year to The the classical music competition de-

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Page 6 CRAIN’S DETROIT BUSINESS January 24, 2011 OPINION OTHER VOICES: STATE OF THE STATE Start state’s journey How to fund Snyder’s plan? Gov. Rick Snyder in his tial progress on each. A nor willing to work on the neces- State of the State address State of the State speech is sary but unpopular. Running issued the right challenge: not the place to lay out de- against both has proven to be a No more putting off until tails, but the governor did way of getting elected all too often. with three steps tomorrow the difficult outline his priorities. The worrisome component of choices that need to be Here his speech was both the speech was on how to pay for hree ideas from Gov. Rick Snyder’s State of the State ad- made to revitalize Michi- encouraging and worri- these necessary and ambitious pri- dress deserve support. gan. And he told us specif- some. orities. Better education — partic- ically what outcomes he There were four action ularly higher education, which T First, the governor made it clear he’s an economic wants to achieve and be areas he addressed that has been on the chopping block for “gardener,” not a hunter. The Snyder team is using the phrase held accountable for. Lou Glazer are particularly encourag- a decade — and the revitalization “economic gardening” to refer to tending to Michigan-based Quite refreshing. ing for a return to pros- of our central cities require ex- companies and helping create policies and support to help The measures he chose to help perity: panded public investments. The them grow. the economy are the right ones. In Moving to a P-20 education sys- state already faces a $1.8 billion addition to the obvious lower un- tem, one that starts at preschool deficit, has $1 billion in enacted With more than 50,000 “second-stage” companies in the employment, he wants higher per and is available for a lifetime; additional tax that comes online state, with $1 million to $100 million in revenue, this makes capita income, lower rates of child recognition of the essential role over the next few years and the sense. If those companies grew an average of two jobs a year poverty, more students leaving that our major research universi- governor called for immediate im- for five years, it would remove some of the sting from Michi- high school college-ready, higher ties play in growing the economy; plementation of his plan to replace gan’s lost decade when it shed more than 800,000 jobs. college attainment and a higher a call for the state to work to at- the MBT with a 6 percent profits number of 25-34-year-olds choos- tract college-educated immigrants; tax that is estimated to cut rev- Second, the governor wants Michigan to open its arms to ing to live and work in Michigan. and understanding that vibrant enue by another $1.5 billion. It is college-educated immigrants. The research on the wisdom of We have been going in the wrong central cities — particularly a De- hard to imagine how you balance this tactic is clear: In about one-quarter of U.S. science and direction on each for years. Turn- troit that is an attractive place for the budget with revenues going technology companies founded between 1995 and 2005, the ing them around will be difficult young professionals to live and down and make the needed public CEO or a key C-suite executive leading the company’s technol- but essential. If Michigan is going work — are an essential element investments. to return to prosperity, we must in Michigan’s economic revitaliza- The governor laid out where we ogy was foreign-born. A Duke University study found these get younger and better educated. tion. need to go. His challenge is to put companies generated $52 billion in revenue in 2005. Getting the metrics right is a The last two — immigrants and in place the policies to get us there. As Crain’s reported Nov. 29, Michigan could attract more major step forward, but ultimately Detroit — are particularly note- Lou Glazer is president and co- immigrants by using the EB-5 immigration law that allows im- what matters is making substan- worthy because they show a gover- founder of Michigan Future Inc. migrants to invest a million dollars, create jobs and earn a visa. Finally, we support the governor’s call to end item-pricing in Michigan’s stores. Ending this law is not anti-consumer. Pundits around the state weigh in Hand-stamping prices on individual items is a waste of money. Clerks could stock shelves more quickly and even help Not enough specifics in address pansions, 2.9 limitations; Gov. major legislative request. customers on the floor or at checkout lines. As long as prices James Blanchard, 1983-1990: 8.6 ex- Perhaps the most telling indica- Gov. Rick Snyder’s 2011 State of were posted or easily scanned, would not most consumers opt pansions, 2.1 limitations; Gov. tion of how momentous the gover- the State address included nine for better customer service? And if service is lacking, the mar- John Engler, 1991-2002: 8.4 expan- nor’s announcement was came proposed expansions of govern- sions, 4.3 limitations; Gov. Jen- from the Ambassador Bridge Co. ket will reward the retailers who offer more. ment and three limitations, ac- nifer Granholm, 2003-2010: 16.25 ex- itself. Normally, (owner Manuel) We were also cheered to see the online dashboard cording to Mackinac Center Fiscal pansions, 3 limitations; Gov. Rick Moroun has a spokesman ready (www.michigan.gov/midash- Policy Director Michael D. Snyder, 2011: 9 expansions, 3 limi- with reaction to any development. LaFaive, who has tallied and cate- board) with metrics focusing tations. This time, there was only silence. gorized annual State of the State Michael LaFaive Jack Lessenberry on economic strength, addresses dating back to 1969. Fiscal policy director, Dome Magazine health and education, “val- “Like all State of the State speech- Mackinac Center for Public Policy ue for money,” quality of es, this one was a mixed bag,” said life and public safety. If LaFaive. “Gov. Snyder hinted at Can Snyder continue to please? some positive things, but didn’t go ‘Time to build’ DRIC bridge you don’t know where nearly far enough with specific, The new governor did some- Gov. Rick Snyder’s State of the you’re going, any road will cost-saving ideas that Michigan des- thing his predecessor promised State address, particularly the get you there. This gover- perately needs to right its economy. but never delivered: he blew peo- tone it struck, drew uniform nor, a CPA, has a very specif- The governor did say he is planning ple away. “It’s time to build the praise from Democrats, Republi- cans, conservative business ic path and destination in to give a series of legislative up- new Detroit River International GLENN TRIEST dates, so hopefully those will in- Crossing Bridge,” he said flatly. groups and even some progressive mind. clude more substantive policy rec- … spending advocates. We look forward to hearing ommendations.” The bridge is not yet a done deal; Whether Snyder can continue to more on Feb. 14, when the Here are the average numbers of some Republicans still say they’ll please everyone will be the central governor delivers the government expansions and limi- oppose it. But it is hard to believe test of his first six months in office as he and a Republican-dominated 2010 Crain’s Newsmak- tations proposed in gubernatorial that the new Republican majority speeches by administration: Gov. could turn down the governor who Legislature seek to square a bil- er of the Year speech. William Milliken, 1969-1982: 5.6 ex- led them to a landslide, on his first See Voices, Page 7 KEITH CRAIN: It was a very good beginning for our state We all have heard a lot of State state, and he attacked it can’t expect our city, hear him give attention to the ex- and our legislators about our state. of the State speeches over the from many angles. state or federal govern- isting business of this state. Next month, he will come up years; politicians are usually good Let’s all hope that he ments to bail us out of Rather than chase all over the with a real budget. We’ll find out at delivering real stem-winders. is successful from all this mess. world for a job here and there, the all about the bad-tasting medicine So it was refreshing to hear our angles. We are going to have state of Michigan should be culti- we’re going to have to take to get new governor deliver a speech But the part I liked to work hard and we vating the businesses that are al- our state well again. without first handing out the pre- the best was when he are going to have to ready here. It may be vile-tasting, tough to pared text hours before so pundits made us all realize that work together. In busi- We have to help them grow, hire swallow, but it’s going to be neces- could be criticizing before the government can’t do ness, we can mentor more people and prosper. I believe sary. speech is even finished. Our new everything for us. We people who need help he referred to gardeners rather It’s going to be a rough road, but governor simply is not a politi- have to help ourselves and advice to make than hunters. It certainly makes a we’re going to have to celebrate cian. and, more importantly, their businesses more lot of sense. our home-grown and help one an- Gov. Snyder gave a good speech we have to help each successful. And finally, I simply liked the other. without a lot of hyperbole. He con- other. Maybe try to “buy lo- governor’s tone. He wasn’t trying Our governor knows what we centrated on jobs and job creation. There is no easy road out of our cal,” too. to run a political rally. He was have to do, and we have started the That is the No. 1 priority in our current financial crisis. And we I was particularly pleased to talking to the citizens of Michigan first step of our journey. 20110124-NEWS--0007-NAT-CCI-CD_-- 1/21/2011 5:12 PM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Now’s the time for volunteer ‘believers’

Edsel Ford II didn’t need anoth- a Believer,” the cam- sionals later, the cam- Associates, production house Pluto Public Schools. er engagement after chairing De- paign launched earlier paign was launched. Post, media producer Robert Dyke One of the region’s megachurch- troit 300, the city’s 300th anniver- this month to boost sup- Billboards and broad- and former Detroiter William Dear. es responded, too, looking for ways sary celebration that left Detroit port for Detroit. cast spots feature What gives the campaign some to engage its 25,000 members in De- with a new hot spot: Campus Mar- Hermanoff contacted everyone from Mayor meat is the Web site, www. troit. tius Park. Curtis in summer 2009, Dave Bing to Oakland believeinDetroit.org, with a back- How such overtures translate But he volunteered in 2006 to feeling frustrated about County Executive L. bone created by a Cities of Service into volunteer action and engage- corral five nonprofit groups, try to the region, the city and Brooks Patterson to program funded by the Rockefeller ment will determine the ultimate reduce duplication and create met- the future. Curtis creat- novelist Elmore Foundation. Through the site, peo- success of this well-intentioned rics that would keep the region ed the successful “Do Leonard and rappers ple can sign up to volunteer. campaign. moving ahead. you have a Beaumont and hip music produc- The site is crucial to determine As Sherri Welch reports on Page doctor?” campaign that ers. Big names are vol- the success of the campaign. Will Mary Kramer is publisher of 3, One D is dissolving, with pieces transformed health unteering to do com- people volunteer? Crain's Detroit Business. Catch her of it going to various nonprofit and care advertising in this mercials to boost the “There’s a pent-up desire to help take on business news at 6:10 a.m. civic groups. Most people never re- market. What magic could she “I’m a Believer” spots. Detroit,” Curtis said, noting the Mondays on the Paul W. Smith show ally understood what One D was. work for Detroit? Behind the scenes were WXYZ- 4,500 people — many from the sub- on WJR AM 760 and in her blog at But they knew who Edsel Ford is, Eighteen months and help from Channel 7 General Manager Ed Fer- urbs — who have volunteered for a www.crainsdetroit.com/kramer. and when he spoke about One D in a small army of volunteer profes- nandez, Mark Petroff at Marketing reading tutor program in Detroit E-mail her at [email protected]. public forums, scores of people were ready to sign up for whatever he wanted them to do. It wasn’t that kind of civic en- gagement effort. But marshaling volunteers is exactly what adver- tising veteran Paige Curtis and public relations guru Sandy Her- manoff hope will happen with “I’m

VOICES CONTINUED ■ From Page 6 lion-plus tax cut for employers while closing an even bigger bud- get deficit. Peter Luke Booth Michigan Be thankful for hearing ‘no’ A fast budget (May 31) almost certainly means a hard, painful budget. A fast budget almost as- suredly means a budget written with the hope that interest groups cannot somehow trip it up during the legislative process. A fast bud- get implies changes the public is probably not ready for. … Many who rely on the state have prayed for specific detail of Mr. Snyder’s intents. Given the signs and portents, maybe they should take some comfort that for now, and for a few weeks yet, the an- swer to that prayer was no. For those anxious to see the budget cut, perhaps they will just need to chafe a while longer while the an- It’s time for your business to swer to prayers for details is no. John Lindstrom Gongwer News Service accomplish big things again. Stable auto industry sets stage for growth of other industries Reviving the auto industry is not Gov. Rick Snyder’s priority. Reviving Michigan is his priority. The two are indelibly linked, but Snyder’s focus is elsewhere — and that reality was on full display Wednesday night during his first State of the State address. … Manufacturing made a cameo Now’s the time to reinvest in your business’ future. appearance twice. But entrepre- The last few years haven’t been easy. It’s been work just to maintain the business you’ve built. neurs consumed the spotlight. … Emphasizing the development of It’s time to get back to growing it. Whether that means buying new equipment, improving your (a statewide) “entrepreneurial working capital, or reinforcing your overall finances, Fifth Third Business Bankers can help you ecosystem” is possible, in part, be- cause the auto industry has al- take action to get your business moving forward with confidence. Stop in your local Fifth ready stabilized. … The auto industry’s health is Third Banking Center, call 1-866-534-7249, or visit 53.com, and let’s get your business moving. critical to Michigan’s economic stabilization. But growth in the Michigan economy will depend on Loans subject to credit review and approval. Fifth Third Bank, Member FDIC. Equal Housing Lender. other industries. Snyder wants en- trepreneurs to lead the charge. Nathan Bomey AnnArbor.com 20110124-NEWS--0008-NAT-CCI-CD_-- 1/21/2011 5:11 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 24, 2011 JCI designer sees brighter, lighter future inside cars

BY DAVID SEDGWICK automakers confidence that light “That gray is almost lavender,” CRAIN NEWS SERVICE interiors wouldn’t get dirty within Sabbagh said, admiring an A7’s a few weeks. “In architecture, peo- paint job. “That gives it depth. It cre- Sherry Sabbagh walks the floor ple like white, clean airy rooms,” ates a shadow effect. It comes alive, of the North American International she said. “So we brought this into almost as if it were changing color.” Auto Show, eyeing concept cars un- the car as well.” Audis boast some of the best in- veiled the previous day. Sabbagh says the migration to teriors in the business, Sabbagh She wanders over to the Porsche light interiors began seven or said, but small mass-market cars 918 RSR. She is impressed, but it’s eight years ago at the Milan furni- might prove to be the trendsetters not the 767-horsepower hybrid ture show, a global launching pad of the future. powertrain, side scoops or stabiliz- for architectural trends. Someday, car buyers will be able er wing that catches her eye. Other much-watched industry to personalize seats and door pan- It’s the orange piping on the events include Premiere Vision, a els online. A customer could take a chocolate-brown seats. “It’s a way Paris-based fabric show, and Lin- high-resolution photo of wood or to let color into the car,” she said. eapelle, a leather trade show in pebbles, or a dragonfly’s wings, “It gives you a little splash of col- Bologna. and have the design blown up and or.” Sabbagh has spent 12 years mon- reproduced on fabric using digital Sabbagh, 51, can be forgiven for itoring these and other events for printing. her laser-like focus on seats. As Johnson Controls. Before that, she “Everyone is feeding off bio- Milwaukee-based Johnson Controls worked for 17 years as a textile de- mimicry,” Sabbagh said. “People Inc.’s principal materials designer Sherry Sabbagh is principal materials designer in Plymouth for Milwaukee-based signer in New York, where she de- are trying to bring nature into based at the company’s Plymouth Johnson Controls Inc., focusing on fabrics and colors in automotive interiors. signed clothing and furniture tex- their cars through these textures operations, Sabbagh chooses the tiles for designer Oleg Cassini, and surfaces.” company’s palette of colors and cle’s most costly components are found in luxury car seats and in- Lucasfilm Ltd., Walt Disney Produc- Another trend: Hard plastic fabrics for its seats, consoles, door seats. Automakers spend roughly strument panels, will migrate to tions and others. cockpit surfaces will be replaced panels and other interior compo- $8 billion a year to put seats in mass-market cars. In the course of her career, she with composites that might show nents. North American-built vehicles. Ⅲ Wood inlays will start to fea- has developed a nuanced eye for flecks of natural materials such as It’s her job to monitor changing The cost to automakers for a set ture nontraditional tints, such as tints that might easily escape an wheat or wood grains. tastes in furniture, clothing, of seats for a mass-market model yellow, gray or green. amateur. Recently, she canceled Brighter colors will find their sportswear — you name it — then like the Toyota Camry might start Ⅲ Creamy, light interior colors elective surgery to correct her way into car interiors, too. figure out what might catch a car at $450 and range up to $1,000 for will prove popular in small cars. nearsightedness after learning she American motorists tend to be buyer’s eye. leather-equipped seats with power They make interiors look roomier might lose her ability to detect conservative in their choice of in- She also helps automakers with adjustments. and more luxurious. subtle shades of gray. teriors. But Sabbagh said she Johnson Controls contracts choose Here’s what she expects: That last item could prove most “My eyes are my livelihood,” thinks that will change as the the fabrics and materials that car Ⅲ Bright colors are gaining pop- significant. Pale, cream-colored in- she said. economy improves and consumers buyers will see in showrooms ularity, and even the color gray teriors convince consumers that As if to prove the point, she wan- feel better about their prospects. three or four years from now. will get subtle tints of blue, violet small cars are not the graceless dered over to some Audi sedans As she put it: “The future looks These are big-money decisions. and other accents. econoboxes of old. that looked simply gray to this ob- good for color.” Aside from the powertrain, a vehi- Ⅲ Stitching, once a costly accent Improved fabric coatings give server. From Automotive News

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January 24, 2011 CRAIN’S DETROIT BUSINESS Page 9

REPORTER’S NOTEBOOK

Dustin Walsh writes about auto BRIDGE TO THE FUTURE suppliers, the steel MDOT uses high-tech materials industry, higher education and tested by Lawrence Tech in Livingston and replacement span, Page 11 Washtenaw counties. Call (313) 446-6042 or write [email protected] Innovations: Sustainability Dustin Walsh Planet Blue tints UM green

At the University of Michigan, three teams bent on efficiency are combing the campus as part of the Planet Blue program. The operations employees, students and faculty saved the university $3.5 million in fiscal year 2010 by curtailing energy consumption in university buildings by 12 percent. Since 2008, Planet Blue has completed efficiency upgrades on 44 UM buildings. It plans to complete 30 more buildings annually. “The goal is to convert 120 of our major buildings,” said Terry Alexander, executive director of UM’s Office of Sustainability. “If we can average a 12 percent savings, that’s a pretty good savings for the university.” UM’s utility budget is roughly $110 million for 34 million square feet of building space.

If Planet Blue achieves a LEISA THOMPSON 12 percent savings for all 120 Tackling the problem of hazardous materials produced by traditional oil-and-water lubrication of metalworking tools, University of Michigan Associate buildings, it would save UM Professor Steven Skerlos has come up with a new approach. roughly $13.2 million annually. “We’ve been doing energy conversions in our buildings for the past 20 years, but this is a more effective way to make these buildings more efficient,” Alexander said. Meeting little friction Alexander oversees Planet Blue and other sustainability initiatives at UM, including recycling and water conservation. Accuri founder’s new lubrication technology removes water from mix The program audits buildings’ BY TOM HENDERSON machine shops here, large and systems, checks office use, CRAIN’S DETROIT BUSINESS small, that survived the reces- researches buildings’ histories sion. and devises a plan for If there’s one place on Earth you can usion Coolant Systems Inc. “ McColm is now managing implementing the most beneficial would seem to have noth- efficiency systems, he said. launch this startup, it’s Southeast director of the Ann Arbor of- F ing in common with Accuri fice of Early Stage Partners, a Upgrades can include sensors Cytometers Inc., other than be- Michigan. Cleveland-based venture capi- that turn lights on and off when a ing spun off from the University ” tal firm. McColm will lead the person enters or leaves a low- of Michigan. Andy McColm, Fusion Coolant Systems Inc. angel fundraising. Fusion is traffic area, low-flow water Ypsilanti-based Fusion has not part of the portfolio of ESP, systems, high-efficiency lighting devised what it hopes will be a los, the chairman of graduate begun making strides. which invests in early-stage systems and efficient better way of lubricating the education in mechanical engi- “This company is one year life science companies. thermostat controls, among cutting and drilling tools in- neering. in, and it feels a lot better than The National Science Founda- others. volved in industrial applica- Since he was a graduate stu- Accuri did one year in,” said tion awarded the company a Bigger-ticket capital outlay tions like en- dent at the University of Illinois Skerlos. “The path to market phase-one SBIR grant of projects are also possible as part KERLOS STORY gine blocks, in the 1990s, Skerlos has fo- for Accuri was a lot less obvi- $220,000 last year, which fund- of the program, but those would S ’ and at the cused on cleaning up the pol- ous. Here, there’s a clear need ed its formal launch, and earli- follow traditional funding sources Path to success: same time re- luted oily water that is a to be filled.” er this month company offi- through the university. Solving problems ducing conta- byproduct of machine tooling. Fusion Coolant has found an cials were told by NSF officials Alexander said the success of led to opportunities, minated Ann Arbor-based Accuri was industry veteran to lead it, has that they had been awarded a Page 11 the program depends on ensuring byproducts founded in 2004 and struggled landed a first customer and phase-two grant of $404,000. the building’s conservation and airborne with funding for years until it has won $694,000 in federal The company also won a systems run as efficiently as health risks for workers. The found market acceptance and small-business innovation re- phase-one SBIR grant of $70,000 possible and teaching the goal: Make old-school manu- began generating substantial search grants in the past year. last year from the National Cen- building’s occupants how to facturing tasks cleaner and revenue, estimated to be more It hopes to raise $500,000 in an- ter for Environmental Research. operate the systems in the most use less energy. than $10 million last year. gel funding later this year. It The NCER said Fusion sustainable way. Accuri, by comparision, Fusion, which uses a cooled employs six and is hiring, Coolant’s metalworking fluids “The educational piece of makes desktop instruments and pressurized mix of carbon looking for a field-service engi- — which the company calls what we do is extremely that silently automate cell dioxide and oil to replace the neer and a sales rep. CHiP lubes, for cryogenic high important,” he said. “A lot of it analysis for university and traditional mix of water and “If there’s one place on Earth pressure lubricants — promise seems common sense, but if biotech researchers looking to oil that cools industrial cut- you can launch this startup, it’s better cooling and increased they’re not using the systems find the next big drug or ting tools — it hits the cutting Southeast Michigan,” said in- lubrication. They also “have a properly, we’ll lose those launch the next startup. surface at temperatures be- terim CFO Andy McColm, who much lower environmental savings.” But both companies were tween minus 20 and minus 60 worked with Skleros when he footprint … and also eliminate founded by the same associate degrees centigrade — was was with UM’s tech transfer of- professor at UM: Steven Sker- founded last January and has fice. He was referring to all the See Fusion, Page 10 20110124-NEWS--0010-NAT-CCI-CD_-- 1/21/2011 10:53 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS January 24, 2011 Focus: Innovations: Sustainability Fusion: Little friction ■ From Page 9 health risks to workers arising Advanced Manufacturing. from chemicals and microorgan- “It’s an eco-friendly approach to isms in metalworking fluids. manufacturing and allows for faster Traditional machining fluids processing time,” said Tom Ander- combine water and oil. That re- son, director of entrepreneurship at quires surfactants to get the two to Automation Alley. “There’s a need to mix properly, and those surfac- get solvents out of the manufactur- tants released into the air present ing process, and by reducing bacte- health problems. In addition, wa- ria contamination, it’s good for ter breeds bacteria that can be re- worker health, but what will make leased and has on occasion caused it a big seller is if lets customers cut Legionnaire’s disease. Biocides more inches per second.” used to lower bacteria counts cre- Burak Ozdoganlar met Skerlos ate other problems for workers. when they were both at the Univer- Then there is the cost of dispos- sity of Illinois and has kept in touch. ing of the hazardous wastewater. He told Skerlos that there could be Last October, Fusion hired Tom applications at the opposite end of Gross as CEO, a veteran with near- the manufacturing scale from ly 30 years experience in machining what he’d been envisioning. tooling. He was manufacturing en- Better cooling and lubricating gineering supervisor for General Dy- was needed in cutting metal for namics Land Systems at the Warren such old-line applications as engine tank plant from 1985 to 1991 and blocks, but it was also needed to COO of Farmington-based Durr Pro- help shape polymers, metals and ce- duction Systems ramics in the very tiny microma- from 2002 to 2003. chining world that fabricates such Durr Production things as microfluidic channels or is a $40 million needle arrays in medical devices division of the and the very small features such as Durr Group, a $2 gears and levers that go into minia- billion company ture electrical devices. based in Last fall, Ozdoganlar, an associ- Stuttgart, Ger- ate professor of mechanical engi- many. neering at Carnegie Mellon Universi- “If you’d ever ty in Pittsburgh, began testing Gross been in a ma- Skerlos’ system of CO2-based cool- chine shop on a 90-degree day and ing and lubricating in his lab. seen the haze of fluids in the air, “The advantages were much you’d see the need for this technol- more in micromachining than in ogy,” he said. regular machining. We’ve seen Fusion provides both coolant and considerable advantages in the the components to deliver it from features we can create. For exam- storage tanks to the cutting surface, ple, we’ve been able to reduce burr both of which are subcontracted out formation, which can be quite a at this point. Gross said he landed problem in micromachining.” his first customer in December — Timothy Hull is supervisor of Paramount Precision Products Inc. of machining and tooling develop- Oak Park — “and I’m talking to a ment for advanced powertrain $2 billion Japanese company that is manufacturing for Ford Motor Co. looking to add our components as He started vetting Fusion Coolant an option to their catalog.” technology for UM in 2006 and con- Sheila Rossmann is CEO at tinues to evaluate it in his lab in 6WDUW6DYLQJ Paramount, a precision machine Livonia. tooling company founded in 1948. “In the applications we’ve 7RGD\ZLWK(QHUJ\ She said that in addition to being looked at, it provides superior Fusion’s first paying customer, cooling of cutting tools, which sig- (IÀFLHQF\,QFHQWLYHV she is providing office space so Fu- nificantly extends tool life and in- sion employees can monitor creases cutting speeds,” he said, progress at Paramount as it ramps particularly with the super-hard- up implementation. ened compacted graphite iron that ITH COLDER TEMPERATURES, now is the “This is going to lower the cost is used to make engine blocks. Wtime to start saving energy and saving of production, it’s going to reduce He said that while it is clear that money by boosting the energy efficiency of your coolant intake and it’s going to the technology offers improve- natural gas heating system. lower the cost of getting rid of ments in cooling and in reducing byproducts,” said Rossman. contaminants, it is a disruptive Incentives are available for: Gross said revenue should hit technology that can pose an imped- • &URNACEANDBoiler tune-ups $500,000 this year and $1 million in iment and a budget issue when in- • Boiler modulating burner control retrofits 2012. troduced in a company like Ford • Steam trap repairs The company is based for now in that has such vast machining • Programmable thermostats the Spark East incubator facility needs. Even if the technology Special programs offered for large and small businesses. in downtown Ypsilanti. It recently comes in the form of a relatively signed a lease for a 700-square-foot small component that can be sales office in the front end of an added to existing equipment, the For more information old tool-and-die shop in Oak Park. total outlay is huge. related to your business: Though Fusion Coolant wasn’t “It provides a benefit to the ma- officially spun off as a for-profit chining process, but you need to www.consumersenergy.com company until last year, the tech- do an accurate cost-benefit analy- nology had several years of finan- sis,” Hull said. McColm said for (877) 607-0737 cial support behind it. It has re- now the company will focus sales ceived funding via UM’s tech on smaller companies, which have e-mail: [email protected] transfer office, the Michigan Univer- lower costs associated with chang- sities Commercialization Fund, the ing machining processes. UM college of engineering, the “People talk about a triple bot- Michigan Microloan Fund through tom line. ... It will be good for the Ann Arbor Spark, and, at last environment, good for the people spring’s Great Lakes Entrepreneurs using it and good for profit mar- Quest, an investment of $12,500 for gins,” he said. winning the fifth annual Automa- Tom Henderson: (313) 446-0337, 5220-C tion Alley Innovation Award for [email protected] 20110124-NEWS--0011-NAT-CCI-CD_-- 1/21/2011 10:27 AM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 11 Focus: Innovations: Sustainability Skerlos’ path to success is problem-solving

BY TOM HENDERSON ty’s cytometers, which were huge, CRAIN’S DETROIT BUSINESS multimillion-dollar machines. I thought there has Those in charge of the cytome- Innovation opportunity has “ ters told Skerlos there was no way knocked twice for engineer entre- to be a better way. they would let him run his pollut- preneur Steven Skerlos. ” ed water through their devices to Ann Arbor-based Accuri Cytome- Steven Skerlos, measure bacteria, not with what ters Inc. has become something of a University of Michigan they cost to buy and install. poster child for how to spin off uni- “I thought there has to be a bet- versity research into real-world ter way,” he said. products with global reach. (See So Skerlos devised a relatively story, Page 9.) tion of founding a company mak- low-cost laser-based fluorescent sys- The company was founded in ing medical devices. As a graduate tem for identifying and quantifying 2004 by Skerlos, an associate pro- student in the 1990s at the Universi- bacteria in liquid, which eventually fessor of mechanical engineering ty of Illinois, founding a company led to the formation of Accuri. at the University of Michigan. Co- was the last thing he had in mind. But Skerlos was still left with founder and CEO Jennifer Baird He was working on a project to problems to solve. How could you was able to raise $27 million over reduce contaminants in the oily improve the cooling and lubricat- the next six years as the company water used to lubricate and cool ing process in factory cutting tools? ramped up development and took the tools that cut and drill metal on How could you increase tool life by its devices to market. the factory floor. One of the major making the cooling liquid cooler? Last January, Baird was re- contaminants is bacteria, which How could you reduce both the pol- placed as CEO by Jeffrey Williams, thrives in water and poses a threat luted water and airborne mist? who had been president and CEO to workers as water turns into air- By substituting cooled carbon at Ann Arbor-based HandyLab Inc., borne mist during machining. dioxide for water, he thought. another UM spinoff that was sold Skleros devised membranes he A patent was filed and granted, for $275 million in 2009. Baird hoped would filter out much of the and in 2010, Fusion Coolant Systems joined another Ann Arbor startup, bacteria in the water, but to quanti- Inc. was formed. Accio Energy Inc. fy how well they were working he Tom Henderson: (313) 446-0337, Ironically, Skerlos had no inten- needed to use one of the universi- [email protected] MDOT uses bridge materials tested by Lawrence Tech BY DUSTIN WALSH is five times stronger and, most mer. CRAIN’S DETROIT BUSINESS importantly, it does not corrode.” The research was funded with While carbon fiber remains ex- $1.3 million in grants from MDOT, Bridge technology developed at pensive, it’s durability will save the Michigan Economic Development Southfield-based Lawrence Techno- the state long-term infrastructure Corp. and the National Science Foun- logical University will be used in the costs, Grace said. dation. sweeping South- “There is an initial investment, Dustin Walsh: (313) 446-6042, field Freeway but over the long term it’s a win- [email protected] renovation this win for everyone,” he said. summer. “MDOT should see considerable The Michigan budget savings and fewer traffic Department of interruptions because you don’t Transportation need continual maintenance with will replace the carbon fiber.” Pembroke Av- The technology stems from enue bridge us- Lawrence Tech’s Bridge Street ing carbon fiber- Grace bridge in Southfield, where the Take action today! reinforced polymer materials for university constructed a fully car- its major components. bon fiber test bridge in 2001 to test Carbon fiber components, tested the durability and strength of the at Lawrence Tech’s Center for In- materials. The university will con- And change your tomorrow... novative Materials Research, were tinue to study the 180-foot span for proven to last twice as long as steel structural integrity through 2015, bridge components, which are Grace said. ...at Central Michigan University in & Online. more susceptible to corrosion, said In the Pembroke Avenue bridge, Nabil Grace, dean of the universi- carbon fiber materials will be used ty’s College of Engineering. in the post-tensioning cables and • Local classes at our 7 Metro Detroit locations “If you look under many of in the reinforcement of the con- • 8 week terms let you complete your degree in less time Michigan’s bridges, you’ll find ply- crete deck slab and road barriers, • Evening, weekend and online classes wood (guarding against falling totaling less than 10 percent of the • No GMAT or GRE for most degrees concrete). The basic problem is bridge’s structure. Construction corrosion,” he said. “Carbon fiber on the bridge will begin this sum- Contact a CMU Off-Campus representative to receive your promo code and WE’LL WAIVE THE $50 APPLICATION FEE. WHO ARE THE TOP CFOS? Call: toll-free 877-268-4636 Applications must be received between 1/17 and 2/4/2011. Applies CFOs are often the unsung heroes Nominations must be received by Go Online: www.cmich.edu/TakeAction only to Off-Campus and Online of organizations’ senior Feb. 11. E-mail: cmuoff [email protected] admissions except DHA. Does not management teams. These leaders To be eligible, nominees must be apply to admission fees to the grapple with budget CFOs or hold an Or visit one of our Metro Detroit locations: Mount Pleasant Campus. pressure and increased equivalent job. Judges Auburn Hills • Clinton Township • Dearborn red tape, and contribute will select winners based Livonia • Southfield • Troy • Warren to strategic planning in on excellence in financial CMU Take Action new ways. or other corporate Crain’s Detroit Business operational is seeking nominations management. Nominees We make it possible. CMU in Metro Detroit & Online. for its fourth annual CFO will be considered for Call toll-free 877-268-4636 • www.cmich.edu/TakeAction awards to give public companies, recognition to these private companies and financial leaders. nonprofits. CMU is an AA/EO institution. (see www.cmich.edu/aaeo) www.cmich.edu/offcampus 29993 1/11 Winners and finalists will be Questions? Contact Jennette recognized at a June event. Smith, deputy managing editor, at To nominate someone, visit (313) 446-1622 or www.crainsdetroit.com/nominate. [email protected]. 20110124-NEWS--0012-NAT-CCI-CD_-- 1/21/2011 10:26 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 24, 2011 ShowShow Them Them What What CRAIN'S LIST: WASHTENAW COUNTY'S LARGEST YouYou StandStand For For EMPLOYERS Ranked by full-time employees

Full-time Company employees is a commitment Address Washtenaw County BBB Accreditation Rank to fairness and honesty that lets Phone; website Top local executive Jan. 2011/2010 Type of business University of Michigan Mary Sue Coleman 27,003 Public university and health Ann Arbor 48109 president 26,423 system consumers know you are a business 1. (734) 764-1817; www.umich.edu they can trust - a business that Trinity Health Joseph Swedish 5,304 Health care system honors its promises and embodies 27870 Cabot Drive, Novi 48377-2920 president and CEO 5,255 2. (248) 489-6000; www.trinity-health.org confidence they deserve. Ann Arbor Public Schools Robert Allen 3,578 Public school district Your customers start with 2555 S. State St., Ann Arbor 48104 interim superintendent 3,579 B 3. (734) 994-2200; www.aaps.k12.mi.us bbb.org. U.S. government NA 3,091 C Federal government Shouldn’t you? 477 Michigan Ave., Detroit 48226 2,621 4. (800) 688-9889

Eastern Michigan University Jack Kay 1,976 Public university 140 McKenny Hall, Ypsilanti 48197 executive vice president 1,956 5. (734) 487-1849; www.emich.edu and provost

Thomson Reuters Mike Boswood 1,785 Business information 777 E. Eisenhower Parkway, Ann Arbor 48108 president and CEO, 1,773 solutions 6. (734) 913-3000; thomsonreuters.com health care and science business

State of Michigan Richard Snyder 1,481 State government , Detroit 48202 governor 1,569 7. (313) 456-4400; www.michigan.gov ® Start With Trust Washtenaw County Verna McDaniel 1,339 County government 220 N. Main St., Ann Arbor 48107-8645 county administrator 1,324 8. (734) 222-6800; www.ewashtenaw.org Better Business Bureau Serving Eastern Michigan and the Upper Peninula Ford Motor Co. Alan Mulally 823 Automobile manufacturer 9. 1 American Road, Dearborn 48126 president and CEO 823 Call 248-224-9600 to learn more (313) 322-3000; www.ford.com

or go to bbb.org City of Ann Arbor Roger Fraser 710 City government P.O. Box 8647, Ann Arbor 48107 city administrator 745 10. (734) 994-2803; www.a2gov.org

Ypsilanti Public Schools Dedrick Martin 640 Public school district 1885 Packard Road, Ypsilanti 48197 superintendent 643 B 11. (734) 714-1210; www.ypsd.org

Borders Group Inc. Bennett LeBow 619 Retailer of books, music and 100 Phoenix Drive, Ann Arbor 48108 chairman and CEO 895 movies and other 12. (734) 477-1100; www.borders.com entertainment products

U.S. Postal Service Charles Howe 598 Postal service 1401 W. Fort St., Detroit 48233-9998 district manager, 610 D 13. (313) 226-8607; www.usps.gov customer service and sales

DTE Energy Co. Gerard Anderson 588 Energy and energy- 1 Energy Plaza, Detroit 48226 president and CEO 618 technology company 14. (800) 477-4747; www.dteenergy.com

Washtenaw Community College Larry Whitworth 576 Higher education 4800 E. Huron River Drive, Ann Arbor 48105-4800 president 590 15. (734) 973-3300; www.wccnet.edu

Lincoln Consolidated Schools Lynn Cleary 550 Public school district 8970 Whittaker Road, Ypsilanti 48197 superintendent 523 B 16. (734) 484-7000; lincoln.k12.mi.us

Domino's Pizza Inc. Patrick Doyle 550 E Restaurant franchisor 30 Frank Lloyd Wright Drive, Ann Arbor 48106 president and CEO 520 E 16. (734) 930-3030; www.dominos.com

IHA William Fileti 532 Physician practice 24 Frank Lloyd Wright Drive, Lobby J2000, Ann president and CEO 502 organization offering primary 18. Arbor 48106-0446 care, specialty care and (734) 747-6766; www.ihacares.com ancillary services Chrysler Group LLC Sergio Marchionne 450 Automobile manufacturer 1000 Chrysler Drive, Auburn Hills 48326 CEO 375 D 19. (248) 576-5741; www.chryslerllc.com

Chelsea School District David Killips 425 Public school district 500 Washington St., Chelsea 48118 superintendent 437 20. (734) 433-2200; http://chelsea.k12.mi.us/

This list of Washtenaw County employers encompasses companies headquartered in Washtenaw, Oakland, Wayne, Macomb or Livingston counties. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA = not available. B Figures are FTE counts from the Center for Educational Performance and Information. C As of Oct. 1, 2010. D Crain's estimate. E Corporate only. LIST RESEARCHED BY ANNE MARKS AND PATRICE BUSHART 20110124-NEWS--0013-NAT-CCI-CD_-- 1/21/2011 10:25 AM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 13 CRAIN'S LIST: LIVINGSTON COUNTY'S LARGEST Energy Experience EMPLOYERS Ranked by full-time employees In Your Corner.

Company Full-time employees Address Livingston County Rank Phone; website Top local executive Jan. 2011/2010 Type of business Citizens Insurance Co. of America Paul Mueller 850 Property and casualty 645 W. Grand River Ave., Howell 48843 regional president 850 insurance 1. (517) 546-2160; www.hanover.com

Trinity Health Joseph Swedish 651 Health care system 27870 Cabot Drive, Novi 48377-2920 president and CEO 590 2. (248) 489-6000; www.trinity-health.org

Livingston Educational Service Agency Scott Menzel 589 Educational service agency 1425 W. Grand River Ave., Howell 48843 superintendent NA 3. (517) 546-5550; www.livingstonesa.org

Brighton Area Schools Gregory Gray 550 Public school district 125 S. Church St., Brighton 48116 superintendent NA 4. (810) 299-4000; http://brightonk12.com

Howell Public School District Ronald Wilson 537 Public school district 411 N. Highlander Way, Howell 48843 superintendent NA 5. (517) 548-6200; www.howellschools.com

State of Michigan Richard Snyder 523 State government Cadillac Place, Detroit 48202 governor 482 6. (313) 456-4400; www.michigan.gov Bruce Goodman Livingston County Belinda Peters 475 County government 304 E. Grand River, Suite 205, Howell 48843 county administrator 484 7. (517) 546-1010; co.livingston.mi.us

Hartland Consolidated Schools Janet Sifferman 464 Public school district 8. 9525 Highland Road, Howell 48843 superintendent NA (810) 626-2100; www.hartlandschools.us First Tier Ranking in Energy Law Pinckney School District Dan Danosky 424 Public school district 2130 E. M-36, Pinckney 48169 superintendent NA Contact Bruce Goodman at [email protected] 9. (810) 225-3900; pinckneyschools.org I Novi I Grand Rapids I Kalamazoo I Grand Haven I Lansing

Pepsi Beverages Co. Scott Gillesby 349 Soft-drink manufacturer, 3400 Auburn Road, Auburn Hills 48326 senior vice president 376 seller and distributor 10. (248) 829-5800; www.pbg.com and general manager

Medilodge of Howell Inc. Jana Broughton 315 Nursing home 1333 W. Grand River Ave., Howell 48843 administrator 312 THE EXCITEMENT IS BUILDING ... 11. (517) 548-1900; www.medilodgeofhowell.com

Toyoda Gosei North America Corp. Hiromi Ikehata 224 Automotive supplier 1400 Stephenson Highway, Troy 48083 president 164 12. (248) 280-2100; www.toyodagosei.com

TRW Automotive Holdings Corp. John Plant 201 Automotive supplier 12025 Tech Center Drive, Livonia 48150 president and CEO 162 13. (734) 855-2600; www.trwauto.com

Chem-Trend LP Devanir Moraes 188 Manufacturer of chemical 1445 W. McPherson Park Drive, Howell 48843 president and CEO 187 specialties 14. (517) 546-4520; www.chemtrend.com

St. John Providence Health System Patricia Maryland 185 Health care system 28000 Dequindre Road, Warren 48092 president and CEO 187 15. (866) 501-3627; www.stjohnprovidence.org

U.S. Postal Service Charles Howe 108 Postal service 1401 W. Fort St., Detroit 48233-9998 district manager, 110 B 16. (313) 226-8607; www.usps.gov customer service and sales

Allor Manufacturing Inc. Tony Allor 90 Manufactures rollers, 12534 Emerson Drive, Brighton 48116 president 90 conveyor chain, custom 17. (248) 486-4500; www.allor.com bearings and tension leveler specialists

IHA William Fileti 74 Physician practice 24 Frank Lloyd Wright Drive, Lobby J2000 president and CEO 67 organization offering 18. Ann Arbor 48106-0446 primary care, specialty care (734) 747-6766; www.ihacares.com and ancillary services

Hatch Stamping Co. Ronald Hatch 73 Manufacturing 635 E. Industrial Drive, Chelsea 48118 chairman and CEO 71 19. (734) 475-8628; www.hatchstamping.com

Lowry Computer Products Inc. Michael Lowry 70 IT systems integrater 9420 Maltby Road, Brighton 48116 president and CEO 64 20. (810) 229-7200; www.lowrycomputer.com

This list of Livingston County employers encompasses companies headquartered in Washtenaw, Oakland, Wayne, Macomb or Livingston counties. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA = not available. Call 313-471-BALL (2255) B Crain's estimate. LIST RESEARCHED BY ANNE MARKS AND PATRICE BUSHART 20110124-NEWS--0014-NAT-CCI-CD_-- 1/21/2011 11:18 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 24, 2011

BUSINESS DIARY ACQUISITIONS Hills, its agency of record. Telephone: (248) 373-8040. Great Expressions Dental Centers, General Dynamics Land Systems, Ster- Visteon Corp., Van Buren Township, in- Bloomfield Hills, has acquired Smile- ling Heights, has been awarded three corporated a Renesas Electronics mi- care Dental Associates, Jacksonville, contracts by the U.S. Army TACOM Life croprocessor in its next-generation Fla. Cycle Management Command, War- MFD platform. Website: www.visteon. ren, to support the Stryker infantry O2 Investment Partners LLC, Bloomfield com. combat vehicle. Detroit + = Hills, has acquired Silbond Corp., West- The Business Improvement Team, on, a specialty chemical manufacturer. Bloomfield Hills, a consortium of con- EXPANSIONS Joseph Sowerby and current majority sulting firms, has created what it calls owner Gebran Anton have bought out Emagine Entertainment Inc., Troy, has a business diagnostic X-ray to look David Zorn of Anton Zorn & Sowerby opened a renovated theater at 200 Bar- into a business’s health. Website: Inc., Mt. Clemens. clay Circle, Rochester Hills. Website: www.bizimpteam.com. Inteva Products LLC, Troy, has ac- www.emagine-entertainment.com. Livio Radio, Ferndale, and Dice Electron- growing with a strong (& fun!) quired the body systems business of ics, Stateline, Nev., now offer subscrip- Troy-based ArvinMeritor. MOVES tion-free Internet radio. The Livio Ra- MI based company! Plymouth Management Co., a venture- dio car Internet radio app enables CONTRACTS capital firm, from 220 E. Huron St., control through the vehicle’s stereo. Servant Systems, Ann Arbor, a fran- Suite A2, to 717 E. Huron St., Suite 2E, record sales growth! chise software development specialist, Ann Arbor. Telephone: (734) 717-9805. NEW SERVICES upgraded a pricing application for fran- Website: www.plymouthvc.com. Cooley Law School, Ann Arbor and chisees of Waco, Texas-based Aire Serv Coldwell Banker Weir Manuel, a real Auburn Hills, and the Detroit Metropoli- waking up every morning! Heating and Air Conditioning Inc. estate broker, from 298 S. Old Wood- tan Bar Association, Detroit, announce Your People LLC, Southfield, a market- ward to 294 E. Brown St., Birming- the Cooley Law School-DMBA pro bono ing, public-relations and communica- ham. Telephone: (248) 644-6300. Web- mentorship program to expand pro tions firm, added the following new site: www.cbweirmanuel.com. bono services in Detroit and Wayne clients: Schakolad Birmingham Choco- County. E-mail: [email protected]. BIGGBY COFFEE Franchise Info late, Birmingham; Lash Rubin Ortho- NEW PRODUCTS Parkmobile USA Inc., Atlanta, Ga., dontics, West Bloomfield Township; TK Holdings Inc., Auburn Hills, the introduced pay-by-phone parking, www.biggby.com Samira Cholagh, chef, MEA TV, South- North American subsidiary of Takata a service that will let motorists in Dear- field; and Natural Awakenings Wayne Corp., Tokyo, Japan, introduced the born use a mobile phone to pay for park- County Healthy Living Expo, Detroit. SafeTraK3 advanced electronic vision ing at meters in the west Michigan Motorcycle Mecca, Birm- system, including lane departure and downtown district. Website: ingham, named Berline, Bloomfield driver alertness warning systems. www.parkmobile.com.

CALENDAR

WEDNESDAY ING SHARES PLANS FOR JAN. 26 B Detroit Metro Convention & Visitors REBUILDING DETROIT Bureau Annual Membership Meeting. The Adcraft Club of Detroit, the 9 a.m.-1 p.m. With Alan Mulally, CEO, Public Relations Society of Ford Motor Co. Ford Community and America-Detroit and the Performing Arts Center, Dearborn. International Association of $45 bureau members, $50 nonmem- Business Communicators-Detroit bers. Contact: (313) 202-1852; e-mail: [email protected]; website: welcome Detroit Mayor Dave Bing www.visitdetroit.com. to a luncheon Thursday, 11:30 a.m-1:30 p.m., at the Detroit THURSDAY Athletic Club. JAN. 27 Bing will share his plans to Overcoming Your Company’s Growing help rebuild a Pains. 8:30 a.m.-noon. The Walsh Insti- city he has tute. For Second Stage small-business loved and owners. With Dave Haviland, founder ideas on how and CEO, Phimation; and Randy Al- to combat the bert, COO, Phimation. Walsh College, city’s negative Novi. $45 alumni and partners, $90 all image. Bing others. Contact: (248) 823-1392; e-mail: Tickets are [email protected]; website: www.thewalshinstitute.com. $35 for members, $45 for nonmembers, $30 for junior members and $25 for students. Five Observations and a Path Forward. For information, call Melanie Davis 5-8 p.m. Marketing and Sales Execu- tives of Detroit. With Sandy Baruah, at (313) 872-7850, e-mail president and CEO, Detroit Regional [email protected], or visit Chamber. MSU Management Educa- www.adcraft.org. tion Center, Troy. $45 MSED mem- bers, $60 nonmembers. Contact: (248) 643-9685; e-mail: meetings@meetingco- . 11:30 a.m.-1:30 ordinators.com; website: www. Detroit Economic Club msedetroit.org. p.m. Feb. 2. With Parag Khanna, di- rector, global governance initiative, New America Foundation. Masonic Temple, Detroit. $45 DEC members, COMING EVENTS $55 guests, $75 nonmembers. Tweet This. 6-8 p.m. Jan. 31. Contact: (313) 963-8547; e-mail: Association for Women in Communi- [email protected]; website: cations Detroit Chapter. With Scott www.econclub.org. Monty, global digital and multimedia communications manager, Ford Motor Co.; and Adrienne Lenhoff, University of Michigan Lecture. 4-5:30 president, Shazaaam Marketing and p.m. Feb. 2. Gerald R. Ford School of Buzzphoria. Go Comedy Improv The- Public Policy. With House Majority atre, Ferndale. $25 members, $35 non- Leader U.S. Rep. Eric Cantor, R-Va. members. Contact: (866) 385-1784; e- Michigan League Ballroom, Ann Ar- mail: [email protected]; bor. Free. Contact: (734) 615-3893; web- website: www.womcomdetroit.org. site: www.fordschool.umich.edu. Newsmaker of the Year Luncheon. Collaboration for Entrepreneurship. 2-11 11:30-2 p.m. Feb. 14. Crain’s Detroit p.m. Jan. 31. New Enterprise Forum; Business. Recognizing Gov. Rick Sny- others. A place to network, learn and der. . $60 in advance; connect. Skyline High School, Ann Ar- $55 for groups of 10 or more; $50 De- bor. $11 advance registration. Contact: troit Economic Club and Inforum (586) 219-7183; e-mail: merlotti@com members; $75 at the event. www. cast.net; website: www.ace-event.org. regonline.com/2011newsmaker. 20110124-NEWS--0015-NAT-CCI-CD_-- 1/21/2011 10:22 AM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 15

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

PEOPLE EDUCATION Barbara Beck to CEO, Learning Care IN THE SPOTLIGHT Group Inc., Novi, from president of Eu- Birmingham-based Tactical rope, Middle East and Africa group, Allocation Group LLC, a registered Manpower Inc., London, England. investment adviser that specializes in using exchange- FINANCE traded funds, has named D. Scott Michael Puckett Foret to the to partner, Met- new position of zler Locricchio COO. He will Serra & Co. PC, also serve on Troy, from audit the company’s executive manager. management Deborah Beckley committee. to senior manag- Foret, 41, had er, Rehmann LLC, been director Farmington Hills, of operations. from manager. He succeeds Puckett Foret COO/Chief HEALTH CARE Compliance Officer Wayne Derick Adams to Holbrook, who holds those same vice president of positions at Cornerstone human resources, Investment Group in Atlanta, Ga. Health Alliance Foret earned a Bachelor of Science Plan, Detroit, degree in statistics from the from vice presi- University of Michigan and an MBA dent of human re- from the University of Otago in New sources, The Zealand. Amerisure Cos., Tactical Allocation Group has more Farmington Hills. Beckley than $1.3 billion in assets under advisement. LAW Brandon Buck, Michael Hauser MEDIA and Rebecca Turner to share- Lynn Montemayor to Detroit local holder, Maddin, sales manager, Comcast Spotlight, Hauser, Wartell, Bingham Farms, from general sales Roth & Heller PC, manager, WCSX-FM 94.7, Ferndale. Southfield, from associate. SERVICES David Gorcyca to partner, Flood Brad Bilen to managing director, The Lanctot Connor Mergis Group, Troy, from division di- Gorcyca Stablein PLLC, rector, Robert Half Finance & Ac- Royal Oak, from senior associate. counting, Troy. Today, more than ever, global competition and corporate CAREER CALENDAR streamlining require innovative TechTown event seeks budding Workshop targets legal, financial thinking and leadership abilities. entrepreneurs age 50 and older issues facing small business Continuing your education can TechTown is hosting “Learn Why Carter & Affiliates PC is hosting a the Best Years Are Yet to Come” free workshop Tuesday on many of be key to ensuring your success. on Tuesday. The free event is part of the key legal and financial issues From sustainable architecture TechTown’s initiative for adults 50 faced by small businesses. The pro- and older who want to become en- gram focuses on the management to alternative energy, Lawrence and liability concerns faced by en- trepreneurs. Attendees will learn Technological University offers about accessing entrepreneurial trepreneurs, as well as tax conse- quences. The program also pro- opportunities, hear from peers vides solutions and techniques for graduate degrees and fast-track who’ve changed careers and get business concession and individ- certificate programs to prepare help exploring employment op- ual investment and retirement tions. The event runs 9-11 a.m. at planning. The workshop is being you for the jobs of the future. NextEnergy, 461 Burroughs St., held 9 a.m.-noon at the Oakland Detroit. County Executive Office Building, For information and to register, 2100 Pontiac Lake Road, Waterford go to techtownwsu.org and click Township. For information and to on the event or call Allison Lumb, register: www.oakgov.com, (248) (313) 879-4478, or e-mail 858-0783. [email protected]. Learn how to retool a career Council of Jewish Women The Tech MBA Online program Leaders in the Making offers tips for job seekers and Michigan Works are sponsoring a free Career Retool Workshop for Waive your application fee at www.ltu.edu/applyfree The National Council of Jewish job seekers, those in career transi- Women, Greater Detroit Section, is tion and people who want to retool offering free job search and ré- for promotion. The event is from Explore over 100 undergraduate, master’s, 2011 2011 2011 AMERICA’S BEST BEST COLLEGES MILITARY sumé writing tips 10-a.m.-3 p.m. 5:30-7:30 p.m. Feb. 1 at the Engineer and doctoral programs in Colleges of UNIVERSITIES in the Midwest FRIENDLY U.S. News & Princeton SCHOOL Architecture and Design, Arts and Sciences, World Report® Review® Tuesday at Council Thrift, 1221 E. Society of Detroit, 20700 Civic Cen- G.I. Jobs® Engineering, and Management. Lincoln, Royal Oak. Contact Es- ter Drive, Southfield. Contact: ther Weitzman (248) 542-2600; e- (313) 215-3513; e-mail: mail: [email protected]; [email protected]; website: ca- Lawrence Technological University | 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu website: www.ncjwgds.org reerretool.eventbrite.com. 20110124-NEWS--0016-NAT-CCI-CD_-- 1/21/2011 10:40 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 24, 2011

THE MILLER LAW FIRM Bonus payments part of Blues plan a professional corporation for ‘next phase’ of medical homes

BY JAY GREENE ate that structure,” Matuszewski ating shared processes of care and CRAIN’S DETROIT BUSINESS said. “They are not looking at the information systems, and in which hospital to create that structure. they share responsibility for the Blue Cross Blue Shield of Michigan They want doctors to create their value of the care delivered to the is beginning a multiyear project to own entities and be responsible for population they serve in com- designate physician organizations reaching out to the community mon,” Share said. as “organized systems of care” to and look to durable medical equip- Sometime in 2012, after collect- improve quality and lower patient ment companies, pharmacies and ing data from primary care physi- Our firm specializes in litigation: care costs. community care organizations” as cians and specialists, Blue Cross • Complex Commercial and Business Organized systems of care — partners. will start to designate physicians which are comparable to the dozen • Shareholder and Partnership But Chuck Kelly, D.O., chief in the OSCs, Share said. or so accountable care organiza- medical officer with the 1,350- “Not every physician will want • Automotive Supplier tions that hospital systems and physician Henry Ford Physician Net- to make the commitment,” said • Class Actions physician organizations in South- work, said the approach Blue Cross Matuszewski, who estimated that east Michigan are developing un- • Employment is taking eliminates working with about 70 Medical One physicians der health care reform — will re- integrated health systems like Hen- will seek designation. “They are • Family Law and Probate Litigation ceive financial bonus payments if ry Ford Health System. looking for high-performing prac- (248) 841-2200 they meet targeted quality goals, Henry Ford, which includes six tices that have the staff” and in- millerlawpc.com 950 West University Drive, Suite 300 said David Share, M.D., Blue Cross hospitals, a 1,200-physician med- frastructure to become designat- Rochester, Michigan 48307 executive med- ical group and a health mainte- ed. ical director for nance organization, also is work- Matuszewski said primary care health care ing to form an accountable care physicians who have been accept- quality. organization to contract with ed into an OSC will begin to re- In April, the Medicare and private payers. ceive a 10 percent increase in reim- state’s largest “It is positive that Blue Cross is bursement to help cover health insurer building on its successful Physician administrative and professional plans to ask Group Incentive Program and pa- costs. physician orga- tient-centered medical home pro- “The bonus payments will come nizations to de- ject,” Kelly said. “On the down out of existing PGIP incentive pool clare their in- Share side, Blue Cross is focusing on dollars as part of their profession- tent to form an physician organizations and indi- al reimbursement claims,” Share organized system of care, or OSC. vidual physicians. … How do hos- said. Over the past five years, Blue To qualify, physician participants pitals fit into their organized sys- Cross has paid out more than must be designated by Blue Cross tems of care?” $75 million in bonus payments. as patient-centered medical home Starting in 2014, the physician- “In 2012, the specialists who low- providers. led OSCs will begin to add high- er costs and improve quality will Blue Cross already has designat- quality hospital partners and oth- receive enhanced reimbursement ed 1,800 physicians in 500 practices er health care facilities, Share if they contribute to population as medical home providers, and said. improved performance,” Share another 3,000 are working toward “The future is one in which hos- said. the goal. pitals, specialists and primary Jay Greene: (313) 446-0325, A medical home describes a sys- care physicians collaborate on cre- [email protected] tem of care in which the primary care physician coordinates all in- patient and outpatient medical care and tracks referrals to labora- tories, pharmacies and imaging CAREER MOVES centers. Physicians agree to adopt a variety of services that include a chronic-care patient disease reg- ADVERTISING/MARKETING istry, evening or weekend hours and electronic prescribing. Director of Marketing “The OSC is the next phase of The Huron-Clinton Metroparks , located in Southeastern Michigan, is a five county patient-centered medical homes. It regional parks system that hosts nearly 9 million visitors each year at 13 Metroparks covering 24,000 acres. The Metroparks offer ten golf courses, two marinas, scenic nature is the natural evolution,” Share trails, beaches, pools, educational activities and winter sports. The 2011 operating and said. “They are beginning to coor- capital budget is $73.5 million and includes 225 full-time and over 800 part-time employees. dinate care more effectively. … The Metroparks is seeking an experienced innovative Director of Marketing who will be The next phase is to knit together responsible for developing and implementing a marketing program designed to increase the medical homes into a more in- attendance at the Metroparks through stronger brand recognition, increased awareness of tegrated system of care that in- the parks in the Southeast Michigan region and the development of sponsored events and festivals. cludes specialists, other primary The position requires a Bachelor’s Degree and 10-15 years demonstrated experience in care physicians and facilities.” marketing with at least 5 of those in a senior level management capacity required. You Share said each physician orga- must be able to travel locally, statewide, nationally and be available to work days, nization designated as an OSC ini- evenings, and weekends as necessary. Compensation range is $95,000 to $105,000 annually. This is a Contract position. To tially will include about 50 prima- apply please forward cover letter and resume, with references, prior to February 15, ry care physicians. Specialty 2011 to: [email protected] physicians will be added later, NOTE: Michigan “Freedom of Information” laws require that candidate names and other once the primary care physician information be made available upon request, unless the candidate has expressly requested confidentiality. The Huron-Clinton Metroparks will endeavor to maintain referral patterns are established, confidentiality and privacy within applicable laws. he said. The Huron-Clinton Metropolitan Authority is an Equal Opportunity Employer (EOE) and Blue Cross is working with a values diversity at all levels of its organization. core group of about 10 physician organizations on developing crite- ria and rules for the OSCs. Anoth- REAL ESTATE er 20 physician organizations in Call Us For Personalized Michigan are part of a larger advi- Service: (313) 446-6068 Real Estate – General Counsel sory group, Share said. Grand Sakwa Properties seeks an experienced Ewa Matuszewski — CEO of FAX: (313) 446-1757 General Counsel who will be responsible for Medical Network One, a 700-member supporting senior management with legal advice. E-MAIL: [email protected] Ability to oversee and draft multiple transactions physician organization based in for all uses of real estate, legal risk and mitigation Rochester, which is in the core INTERNET: and maintain all corporate legal documentation. group — said Blue Cross is devel- www.crainsdetroit.com/section/classifieds Must be a member of the Michigan Bar. Comprehensive compensation package offered oping its OSC using primary care See including full benefits. physicians as the starting point in Resumes to Gary Sakwa, Grand Sakwa the delivery system. Crainsdetroit.com/Section/Classifieds Properties, 28470 Thirteen Mile Road, Suite 220, Farmington Hills, MI 48334. “(Blue Cross) is relying on the for more classified advertisements Email [email protected] physician community to help cre- 20110124-NEWS--0017-NAT-CCI-CD_-- 1/21/2011 2:50 PM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 17 Jet’s flight path: From homegrown MARKET PLACE ANNOUNCEMENTS & BUSINESS & SERVICES INVESTMENTS

pizza to becoming national player BUSINESS SERVICES BUSINESSES FOR SALE

BY NATHAN SKID because they are not as expensive Great Small Business Opportunity - Successful Looking for More Revenue? corp. computer products supplier retiring. Low CRAIN’S DETROIT BUSINESS to get into or build,” Tristano said. overhead, excellent working hrs. Contact Robert J. Startup costs begin at a mini- Craig, JBP, Inc. 248-851-2770 or cell 248-981-4440. In 1978, 23-year-old Eugene Jetts mum of $300,000, and potential FOR SALE: Double Drive-thru coffee operation Located in N. Oakland County. Ready to operate. was told by his parents to take his franchisees are required to have a No hassles. Licensed. Growing customer base. $20,000 life savings and buy a net worth of $300,000 in cash or liq- Creative Marketing Consultants Write: MC, P.O. Box 751, Clarkston MI 48347 house. uid assets. The initial franchisee www.HartnettAssociates.com But as he drove around Sterling fee to open a Jet’s location is Crain’s Classifieds Gets Results Heights, the entrepreneurial spirit $20,000. took over and a vacant storefront Dennis Roehrig, who joined proved too intriguing to ignore. Jet’s America three years ago as Instead of buying his first home, director of purchasing, said the Jetts, with the help of his brother company survived the recession John, converted a former party by staying true to its philosophy. REAL ESTATE store into the first Jet’s Pizza loca- “We didn’t succumb to compet- tion. ing with the inexpensive pizzas,” With little more than a family Roehrig said. “Could we have of- ANNOUNCEMENTS OFFICE SPACE recipe, the two began making piz- fered a $5 pizza? Sure. But we zas in two ovens in the back of the wouldn’t sacrifice quality for Property Owners store, selling them two for the price.” REO Advisors Nationally trained Commercial Real Estate veteran FOR SALE price of one. Instead of cutting costs during with over 30 years of experience available on an 28111Medical Imperial Professional Drive • Warren, Plaza MI Eugene Jetts, co-founder and the recession, Eugene Jetts said "as needed" basis to provide: president of Jet’s America Inc., said the company doubled its advertis- Due Diligence Reviews: inspect, evaluate & report 33 years later that the company, ing. Troy-based AFA Krause han- Property Management: still based in Sterling Heights, fol- dles Jet’s marketing and advertise- oversight & monitoring lows the same business philoso- ments. Budgets: phy: tasty pizza at an affordable — “When things are tough, you prepare/implement/monitor but not bargain-basement — price. have to up the advertising rev- Leases: 20321 Farmington Road • Livonia, MI review/abstract/prepare escalation Jet’s charges $9.89 for a large one- NATHAN SKID/CRAIN’S DETROIT BUSINESS enue.” • 11,200 SqFt Medical Building Co-founder John Jetts at the original Construction: topping deep-dish pizza. Jet’s Pizza location, at 14 Mile and “We used to use gimmicks like prepare RFP, obtain bids, oversee • Eight Mile and Farmington Road These days, thanks to aggressive Ryan roads in Sterling Heights. everyone else,” Eugene Jetts said. Mike Irwin -- 313-770-3224 • Prominent Signage new store openings and strong “But AFA wanted to highlight MI_Commercial Real Estate LLC word-of-mouth buzz from fran- The product itself is the best quality and bring that to the fore- www.mi-commercial-llc.com • Highly Improved chisees, Jet’s is hitting new bench- marketing to attract potential front.” • Sale Price $1,200,000 marks as a regional pizza player. franchisees, the Jetts said. Tim McIntyre, vice president of For More Info Please Contact: While the rest of the pizza indus- “Someone in Tennessee gets communications for Domino’s Pizza INDUSTRIAL PROPERTY Bob Moon try grew by about 5 percent in hooked on our pizza and opens a Inc., said Jet’s relatively new name [email protected] 34975 W Twelve Mile Rd 2010, Jet’s increased its revenue by store there,” Eugene Jetts said. in the national pizza scene is help- Troy -- Sale or Lease 248.324.2000 Farmington Hills, MI 48331 nearly 30 percent. Its recent jump “That is how we have entered 13 ing foster its growth. 67,700 Sq. Ft. Mfg. or Whse. www.friedmanrealestate.com from 24th to 18th place on Pizza states.” “Jet’s, being new and fresh as a Primary Power • 3 Truckwells Today’s list of the top 100 pizza Chris Wotrang is one such fran- brand, has a lot of growth momen- $1.95/Sq. Ft. Lease Rate companies in the U.S. by sales il- chisee. tum right now,” McIntyre said. Possible Seller Financing PROPERTY MANAGEMENT lustrates how the onetime east Wotrang had been a private pilot “One of the keys to that growth is Broker/Owner (248) 705-0835 side pizza maker is expanding its for 10 years before deciding to look they market just what a great val- reach. Madison Heights-based Hun- for a new line of business, a career ue a pizza meal is.” gry Howie’s is at No. 14, and Detroit- that would provide him the same Domino’s also promoted pizza as AVAILABLE NOW based Little Caesar’s Pizza is ranked luxuries as the wealthy individuals a good value on a national level Professional Multi-Family Management fourth. he flew around the country. while introducing a new recipe 4,000 to 100,000 sq. ft. for over 45 years. John Jetts, vice president of “I was working with people who and several new product offerings WE SPECIALIZE IN product and franchise marketing, had tons of money. Everyday, I Also 10,000 & 25,000 sq. ft. to widen its consumer base. • Increasing Occupancy • said the brothers had no idea they would see these people drop In fact, McIntyre said it changed Free Standing Bldgs w/truckwells. were laying the groundwork for $20,000 on a trip to California,” 80 percent of its menu between WE MANAGE YOUR ASSET TO what would become a sizable U.S. Wotrang said. “I realized I would 2008 and 2010. 1 Mile from Metro Airport ACHIEVE GREATER CASH FLOW. chain. never be able to do that making “We really created a new busi- Our Model Works. “I was 18, Eugene was 23 and we $60,000 a year as a pilot.” ness for ourselves by introducing REA CONSTRUCTION CALL JEFFREY KAFTAN AT 248-352-3800 thought with our mom’s recipe we It was during a layover in Michi- sandwiches and pasta,” McIntyre (734) 946-8730 had a great niche,” John Jetts said. gan that Wotrang met a Jet’s fran- said. “We were very successful for www.KaftanCommunities.com “We have not changed the recipe chisee who brought him a pizza a long time as a one-trick pony — Also Heavy Industrial once since we opened.” while he waited for his passengers pizza delivery — but the world Land Available It took three years, but Eugene to arrive. changed and today there are some Jetts said long lines began forming After that first slice, he was sold. 71,000 places to get a pizza in the www.reaconstruction.net for the take-out square pizzas, then Wotrang found a partner and United States.” a novelty in Southeast Michigan. the pair opened their first Jet’s McIntyre said the new products Jetts says if you wanted square Pizza in New Hope, Minn., in 2008. helped Domino’s increase sales by pizza then, you had to go to Buddy’s He and his partner are opening a about 10 percent in 2010. OFFICE SPACE Restaurant Pizzeria. But word second store in Anoka, Minn., and Jet’s also is testing new prod- spread about Jet’s square pizza, plan to open one store a year for ucts: a new multigrain crust pizza FOR SALE and its popularity grew. the next decade. in Grand Rapids and a hot sub 525 AVIS DRIVE “I noticed that people were com- Darren Tristano, vice president sandwich in North Carolina, using PITTSFIELD TWP, MI ing from farther and farther away of Chicago-based food industry re- the same dough it uses for its pan to get our pizza,” Eugene Jetts search and consulting firm Tech- pizza. said. “People who lived in Livonia nomic Inc., said Jet’s has the right But Eugene Jetts said the com- but worked in Sterling Heights mix of product, quality and value pany’s best menu innovation came were driving back here to get it.” for franchisees. when he overheard a family of five In 2009, Jet’s Pizza Inc. opened “Pizza outside of the Midwest is arguing over the coveted corner 28 stores. Last year, it opened 38 not very good because overall the slices. “I watched this family fight INVESTMENT OPPORTUNITY and this year it expects to open an quality is very low,” Tristano said. for the corners of a pizza, and that » 36,392 SqFt REO Ofce/Flex Building additional 40. “As a result, a company with high- got me thinking: How can we cre- » Excellent Owner/User Opportunity The company and its fran- er quality like Jet’s is going to ate a pizza made up of nothing but » Individual Entrances, Restrooms & HVAC Systems chisees operate 203 stores, 12 cor- have better sales than its competi- corners?” » Close Proximity to the University of porately owned, generating sales tors in small, local markets.” That was the basis for the cre- Michigan of about $163 million. Tristano pointed to Jet’s lower ation of Jets’ Eight-Corner Pizza, » Asking Price: $1,800,000 or $49.46/SF Jet’s has locations in Michigan, franchise costs as the reason be- which at $10.99 has become one of 248.324.2000 Florida, Ohio, Texas, North Caroli- hind its increased store count. its top sellers since it was intro- FOR MORE INFORMATION PLEASE CONTACT: MITCHELL LIPTON SCOTT BARRIE na, Minnesota, Tennessee, Geor- “If you look at pizza franchises duced a few years ago. [email protected] [email protected] INFORMATION IS SUBJECT TO VERIFICATION AND NO LIABILITY FOR ERRORS OR OMISSIONS IS gia, Illinois, Kentucky, Indiana, and what people are able to invest Nathan Skid, (313) 446-1654, ASSUMED. WE HAVE NO REASON TO DOUBT ITS ACCURACY, BUT WE DO NOT GUARANTEE IT. Alabama and Wisconsin. in them, concepts like Jet’s benefit [email protected] WWW.FRIEDMANREALESTATE.COM 20110124-NEWS--0018-NAT-CCI-CD_-- 1/21/2011 5:58 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 24, 2011 Super Bowl: 5 years later, prep for big game yields dividends ■ From Page 1 ment, now what do we do to create and measure the distance, so we façades,” including the Woodward a space for physical mass?” Sherer could demonstrate that we didn’t Building at 1449 Woodward Ave., said. “Then the Motown Winter have the capacity.” the at 1150 Blast entered into the equation. Comparing the city pre- and Griswold St., Hot Sam’s at 1317 Many felt that was not our job — post-Super Bowl, three things Brush St. and the ground floor and I know the NFL now restricts stand out to Detroit Economic storefront of the Fyfe Building, 2001 cities from doing that — but we felt Growth Corp. President and CEO Woodward Ave. at Adams, which strongly that because of the way George Jackson Jr. became Proof, a martini and tapas the city was mapped out, the bot- “One would be the streetscapes bar, according to Crain’s archives. tom line was there weren’t enough we put in, particularly Washington, “Most of the buildings at that bar seats. I remember Roger say- Woodward and Broadway,” Jack- time were in bad shape,” Jackson ing, ‘Count ’em,’ get a wheel thing son said. “We did almost 100 said. “What we did was induce the owner or businesses leasing those properties to put more private dol- lars into the properties. Façade im- provement changed the overall look of downtown, and our down- DOWNTOWN DETROIT PARTNERSHIP town looks a hell of a lot better Roger Penske launched Clean Downtown in June 2006. than it did before.” Jackson points to current pro- Downtown right after the Super jects such as the Whitney Building SUPER BOWL XL’S LEGACY Bowl,” said Ann Lang, president and CEO of the Downtown Detroit and David Broderick Tower (See Motown Winter Blast story on Page 3) as work that has Partnership. “My understanding More than 100 façade was that out of everything he was roots in the Super Bowl.“What we improvement grants did for the Super Bowl definitely asked to do, the things that mat- Streetscaping on Washington tered most were keeping downtown paved the way for projects like Boulevard, Broadway and that, showing people how it could Woodward Avenue looking the way it was looking and working with Goodwill (Industries of be done.” An impetus for downtown building Third, there was little down- redevelopments such as the Westin Greater Detroit.) He came to us for town residential space until the Book Cadillac and Broderick Tower Clean Downtown, and we had the Super Bowl, Jackson said. (See story, Page 3). benefit of him as chairman of our “We were on a roll till the finan- Clean Downtown initiative board for four years.” cial markets kind of collapsed,” Cindy Pasky, president and CEO Jackson said. “The key was to Efficiency and teamwork of Detroit-based Strategic Staffing show that we can do projects that Solutions, is the current chair of involve taking what was formerly “Each of the initiatives had the DDP. an office facility and converting money behind them,” Goodwin Clean Downtown uses Goodwill them into lofts, to residential com- said. “In addition to public money workers to maintain downtown munities. … From that standpoint, that was allocated, philanthropic streets. Lang said the workers get we kind of led the way.” organizations stepped up to the a meal and a clean uniform daily, The city and the Downtown De- plate and offered money. Detroit Re- with the goal of parlaying their troit Partnership, then the Greater naissance (now Business Leaders for Clean Downtown experience into Downtown Partnership, had iden- Michigan) and the state of Michigan permanent employment. tified a number of goals the city found ways to partner with us fi- “As Paul Childs, our COO, used should strive for before the Super nancially to make funds available to say a while back, we started out Bowl announcement, said Malik for infrastructure improvements, picking up mattresses and now Goodwin, vice president, project and we found public and private we’re looking for cigarette butts,” management, at the DEGC. They partners.” Lang said. “It caused us to measure were “to improve the infrastruc- The DEGC hosted monthly how many miles of sidewalks are in ture in the lower Woodward area, meetings with business owners, downtown — 39 — which are power to increase the number of residen- landlords and city officials in an washed three times a year and pow- tial units, to come up with a plan to effort to make it easier for busi- er swept more regularly than that. deal with the giant vacant and nesses to locate downtown. We found weed control to be very blighted structures in downtown Ultimately, Goodwin said, 50 important … (getting rid of) graffiti, like the Statler Hilton Hotel, the new small businesses opened stickers and posters. …” Book-Cadillac, the Pick-Fort Shel- downtown before the game. Less obvious, Sherer said, were by, and find someone to renovate Detroit Renaissance organized the connections forged between them or to raze them. They were much of the façade improvement business and civic leaders. casting a pall on the downtown funding, Sherer said, and the city “We had 400 people involved on landscape,” he said. also created a court to quickly ad- 10 or 12 teams,” she said. “Maybe The Statler Hilton was razed in minister blight violations — a car- some of them knew each other well, 2005; though renovations of the rot-and-stick approach to incen- but a lot of them did not. … Don’t as- Fort Shelby and the Book-Cadillac tivize business owners to upgrade sume that even in a leadership role weren’t completed before the derelict buildings. people know each other, because game, the Doubletree Guest Suites The effort was abetted by metro they don’t — they’re too busy.” Fort Shelby and Westin Book Cadillac Detroiters’ willingness to help — In an e-mail to Crain’s, Penske opened in 2008. and by low expectations from out- acknowledged that his involve- “Also, there were recommenda- siders. ment in the Super Bowl engaged tions to try and attract smaller “In soliciting conventions to him with many initiatives in the businesses to the downtown area. come to downtown Detroit, I knew city, particularly when it came to … Once it was determined the city new people coming into the market working with other business lead- was going to host the Super Bowl, had low expectations of how we ers, like Quicken Loans founder and we used it as a rallying cry to get could perform, and would be wildly Chairman Dan Gilbert and Chris things done.” impressed,” she said. “We’ve got so Ilitch of Ilitch Holdings Inc., and for- The coming Super Bowl helped much more than what people ex- mer DDP Chairman Matt Cullen, underscore the need to make funds pect. We have these gigantic compa- COO of Detroit-based Rock Ventures available to do the work, Goodwin nies, these global companies, we’re LLC. Cullen and Penske have taken said. an old city with both legacy victo- the lead on the M1 Rail project, “First of all, we had to identify ries and legacy burdens. Then which aims to run light rail in the where the sources of funds were you’ve got Roger Penske, for good- Woodward Avenue corridor. going to come from to implement ness sake. That on top of the Super “I don’t think anyone would some of this work,” he said. Bowl was some good stuff. Plus, I draw a (direct) line to the M1 Rail, The DEGC had a number of pro- could see that raising money was but I watched Roger evolve as a grams to spur business growth and coming along nicely and see how community leader, someone who development, Goodwin said, but people are responding.” got very engaged as a community was able to use tax increment fi- leader and better understood the nance authority funding for the Penske’s priorities issues,” Sherer said. “Because of lower Woodward improvement Following the game, Penske — the time he was pouring in, he was agenda. CEO and chairman of Bloomfield able to be very effective, post-Su- More than $150 million was Hills-based Penske Corp. — wanted per Bowl, on many fronts.” spent on improvements in the cen- to keep the ball rolling. Nancy Kaffer: (313) 446-0412, tral business district. “Roger Penske formed Clean [email protected] 20110124-NEWS--0019-NAT-CCI-CD_-- 1/21/2011 5:52 PM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 19 MEDC: Planning to move staff around ■ From Page 1 able the agency to work more effi- statewide job posting services to charged with directing MEDC tal- ciently and effectively with local or- companies that expand, locate or ent programs to support entrepre- ganizations, share information and start a business in Michigan. neurship, attraction and retention, eliminate duplication of efforts. For example, there will be online as well as “economic gardening” — “We intend to work very closely public access to information when helping existing companies grow. with key local partners around the companies, such as those receiving Snyder last week called on law- Do the state,” he said. assistance through the Michigan Eco- makers to revamp the scope of the Finney, who was president and nomic Growth Authority, announce state’s 21st Century Jobs Fund and CEO of Ann Arbor Spark before Sny- projects and jobs. remove restrictions on what indus- der picked him to run the MEDC, While the state is bolstering its ef- tries can receive its support. said the agency is determining forts geographically, it is also look- The idea is to cast a wide net for Right Thing where the non-Lansing staff will ing to broaden the types of compa- companies that have significant po- work. He said the move would aid nies it assists. tential for growth, including in such the MEDC in its emphasis on help- New appointments and promo- areas as software and agriculture. ing and building businesses that are tions announced on Friday are part “The role of government is to sup- already in Michigan. of that plan. Oakland County port success, not pick winners and Ethos Week Another move, also highlighted Deputy Executive Doug Smith will losers,” Snyder said. by Snyder last week, is to have the leave the county for a senior vice The effort to work more closely MEDC serve as a clearinghouse for president post at the MEDC next with regional groups is something best practices that can be emulated month. He will head up economic that the Michigan Economic Develop- March 14 -18 in regions throughout the state. attraction programs and coordina- ers Association sees as a good move, For example, international trade tion with agencies such as the De- while awaiting more details. programs developed by Southeast troit Regional Chamber and its Detroit “I think from the standpoint of cob.emich.edu Michigan’s Automation Alley might Economic Partnership, Automation getting closer to the communities, it be used or duplicated in other parts Alley, The Right Place in Grand is a real positive step,” said John of the state. Finney said that as an Rapids, the West Michigan Alliance Avery, executive director of the as- incentive the MEDC will offer finan- and others. sociation. cial assistance for entities to work Joining the MEDC will be Amy The group, in a report last year together. Cell, vice president of talent en- that laid out a blueprint to remake The concept is “to take our best hancement and entrepreneurial ed- state economic development strate- ideas that we have, things that are ucation for Ann Arbor Spark, who gy, among other things cited the working in communities through- starts Jan. 31 as senior vice presi- need to revamp responsibility for out our state and, where appropri- dent of talent enhancement. Martin business retention calls. ate, extend that to other communi- Dober, vice president of new mar- The association said in its report ties that are interested,” he said. kets at MEDC, has been promoted to that lack of coordination and com- In another statewide outreach, senior vice president of the entre- munication on retention calls led to the MEDC is looking to connect en- preneurship and innovation team. “duplications at best and missed op- trepreneurs, management talent Dober’s team will focus on pro- portunities at the worst.” WJR’s Paul W. Smith and job seekers with established grams that encourage entrepre- Amy Lane: (517) 371-5355, employers — including offering neurship and innovation; Cell is [email protected] EMU’s David Mielke Broderick: Financing restarts project ■ From Page 3 building was transferred to a de- framework that wound up being PLC is the project architect. In addi- veloper under a land contract. the right combination, Beal said. tion to a full interior renovation, the Development firm J. Ryan Inc. “He created financial models for building’s façade will be restored. took over the building with the the project that a developer would Leasing a residential project like idea of creating a residential devel- typically hire a consultant to write the Broderick in Detroit will be dif- opment, Higgins said, and emptied and then submit to the bank,” Beal ficult until the city attracts more the building of all its tenants. But said. employers, said Terry Schwarz, by 1986, the project could not se- And that financial structure has managing partner of Bingham cure adequate financing and, un- become elaborate. Farms-based Dover Realty Advisors, der the terms of the land contract, The entity that owns the building which handles leasing for the Lofts ownership reverted back to the is Motown Construction Partners L.P, of Merchant Row in Detroit. Higgins family. which has 23 investors. The largest He said demand for units in the “But we got it back empty,” Hig- investor is Higgins, with Beal and Grand Circus Park area is based gins said. “In 1986, nothing other his son Stewart each holding on people who can walk to work. You Deserve: Thoughtful Philanthropic Planning than the roof antennas and the 2.5 percent stakes. The other in- That will change if a train is built restaurant were leased.” vestors have not been disclosed. along Woodward, he said. Find us at PMFA.com. Since then, the building has re- The investors raised $5.5 million “Whether or not they lease that mained vacant and used mostly as in equity. Bank of America has up will really depend on what hap- a large billboard that can be granted a bridge loan of $21 mil- pens with employers coming viewed from . lion as well as a New Market Tax downtown,” he said. “But as At the end of 2005, Higgins Credit for $6 million. things exist right now, you can’t UPCOMING BREAKFAST ROUNDTABLE: teamed up with developer Fred Beal Chase Bank and Invest Detroit lease another 127 units in Detroit as the idea of residential develop- loaned the project $5 million and without cannibalizing the compet- February 15 ment in Detroit started to heat up. backed $2 million in New Market ing buildings.” Beal, president of Detroit-based JC Tax Credits. Schwartz said it will be interest- Ready to Retire? Considerations for Passing Down the Family Business Beal Construction Inc., originally was On completion of the project, the ing to see what kind of rental con- hired to estimate the project’s cost startup expenses and bridge loans cessions — such as free rent and All roundtables will be held from 7:30-8:30 a.m. at and wound up as a partner in it. will be covered by state and federal other discounts — will be offered 27400 Northwestern Hwy., Southfield, MI 48034. The project, which was to be fin- historic tax credits and state brown- and whether that creates pressure ished by the end of 2006, secured field credits with a total value in the for other apartments to offer them. Visit roundtables.pmfa.com to register. Seating is limited. some financing through Deutsche range of $24 million. The long-term But the three floors of commer- Bank, but full financing never financing is $3 million more than cial space in the building have al- closed, Beal said. the short-term financing, adding ex- ready been spoken for. Invest De- Again in 2008, Beal and Higgins tra funds for for startup operations. troit plans to use the space as a secured portions of financing for In addition, $10 million in devel- business incubator, Beal said. the project, this time with the help oper fees and construction costs will “This building is a gateway to of Bank of America. But financing be paid out of future operations. downtown, and it shows everyone for the roughly $53 million project Now, Beal joked, they merely what is happening in the city,” INVESTMENT MANAGEMENT I *TRUST SERVICES proved to be a two-year ordeal. need to build the project and lease it. Beal said. “From a professional *INSURANCE SERVICES I *TAX PLANNING Higgins and Beal credit Bank of The 127 units will be on floors five standpoint, I’m excited, but I’m ESTATE PLANNING I WEALTH MANAGEMENT America Senior Vice President through 34 with rental rates starting also excited about what this means Richard Hosey for being the back- at $700 and hitting $5,000 for the to Detroit.” BUSINESS TRANSITION I PHILANTHROPIC PLANNING bone of the project. Hosey helped three multilevel penthouse units. Daniel Duggan: (313) 446-0414, QHHGTGFVJTQWIJCHſNKCVGUQH2/(# create a public-private financing Detroit-based Kraemer Design Group [email protected] 20110124-NEWS--0020-NAT-CCI-CD_-- 1/21/2011 5:47 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 24, 2011

A DRIC PRIMER DRIC: Snyder stirs debate over bridge-related jobs The project, which would be either cable-stayed or suspension, would ■ From Page 1 link Ontario’s Highway 401 and Michigan’s I-75 by building a publicly ic consequences for Michigan and owned six-lane span over the Detroit Ontario are significant — as many River between Detroit’s industrial as 42,000 lost jobs over the next 30 Matching funds for DRIC could open legislative road Delray neighborhood near Zug Island years (26,000 in Michigan and and Windsor’s Brighton Beach area 16,000 in Ontario). The outlook is BY AMY LANE starts to flow, so using the funds ate Republican leaders say (landing between a power plant and even worse for the U.S. and Cana- CAPITOL CORRESPONDENT for matching money in upcoming they’re open to discussion. salt plant). da — almost 100,000 total lost jobs fiscal 2012, as the administration Senate Majority Leader Randy The four partner agencies on the by 2035 if this study were stopped LANSING — Ten days into his envisions, assumes that DRIC Richardville, R-Monroe, said his project are MDOT, U.S. Federal and a new bridge were not built.” new job, Gov. Rick Snyder went to work is going to start. caucus will want to examine the Highway Administration, Transport Snyder didn’t mention any job Washington and returned with an “The money can only be used to plan, but that providing matching Canada and Ontario’s agreement that could push for- match as it’s expended,” said Bill funds could potentially bring Transportation Ministry. numbers in his speech, which was the first time he has staked out a ward the Detroit River International Shreck, Michigan Department of some new legislative support to The project would take 48 to 52 position in the bridge debate. It’s Crossing in the Legislature. Transportation acting director of the project. months to finish. The planned Here’s why: The agreement communications. House Speaker Jase Bolger, R- opening was January 2016, but not yet known when he’ll unveil that could be delayed because of his proposal for DRIC, which he frees up matching funds that Those at the Washington meet- Marshall, will work with Snyder the legislative debate in Lansing. said will be part of making the cash-strapped Michigan needs to ing included Snyder, MDOT Di- on the new DRIC proposal, said The preferred construction and state a “hub for global commerce.” draw down federal money for rector Kirk Steudle, U.S. Secre- Bolger press secretary Ari Adler operation financing plan is for the The crossing has broad support roads — not just roads that would tary of Transportation Ray in an e-mail to Crain’s. private sector to build and operate across the business community, support the DRIC — but the funds LaHood, and federal transporta- “There are a number of ques- the bridge, and it would collect tolls especially from the Detroit Regional are available only if there’s tion and highway, customs and tions that still need to be answered to pay its costs. The governments Chamber and Chrysler Group LLC, but progress on the project. border patrol officials. before the House Republicans would jointly own the bridge. no promises yet of job creation be- The agreement, which emerged Snyder announced the agree- would be able to support the pro- MDOT said any concession yond the project itself. from a Jan. 10 Washington meet- ment — and his first public sup- posal, but we are encouraged that agreement will include a default Instead, the span is largely seen ing to discuss borders and Presi- port for the DRIC — in his State of Gov. Snyder is looking at this from clause that prevents the state from as needed for future growth rather dent Obama’s exports initiative, the State address last week. The a business perspective,” Adler being responsible for any deficit or than immediate need. That’s gives balking legislators — many DRIC proposal is competing with said. “The key will be to determine default. However, MDOT also said of whom are Republicans like Sny- a proposal by the private-sector what has changed between the old the agency hasn’t ruled out the where construction job creation availability of payment subsidies comes in, providing a real-time der — an incentive to support the owners of the Ambassador Bridge proposal and Gov. Snyder’s new and that the final form of the justification for the project. DRIC. It also solves the problem of to twin that span. plan. We are still concerned about concession is far from being written. trying to come up with $120 million The Legislature would need to protecting Michigan taxpayers. Michigan has spent nearly to $160 million for the fiscal 2012 take up legislation authorizing “The funding offer from the $40 million on DRIC costs since The predictions budget to draw money for road and MDOT to hire a private company to Canadians and the news that it 2002. Official estimates say DRIC will bridges throughout the state. build and run the DRIC. One law- can be used for our federal match- The Detroit-Windsor border, create, on the U.S. side, 8,939 to Under the agreement, the up to maker who last week said he is ing dollars makes this new pro- which includes the bridge, a tunnel 10,316 direct jobs and 22,986 to 26,784 $550 million that Canada has of- sponsoring DRIC legislation is Sen. posal worthy of review.” and ferries, is the busiest in North indirect jobs from 2010 to 2013, ac- fered to spend in support of the Hoon-Yung Hopgood, D-Taylor. In his State of the State address, America and carries a quarter of all cording to materials provided by DRIC project can count as the Just a few weeks into a new leg- Snyder said Michigan taxpayers U.S. trade with Canada, estimated DRIC spokesman Tom Shields, state’s match for federal highway islative session, with new House will not take on any debt related at about $130 billion. president of Lansing-based public funds, potentially for several years. and Senate members and leaders, to the project. Grosse Pointe trucking relations and lobbying firm Market- But the matching funds don’t it’s early to gauge the prognosis Amy Lane: (517) 371-5355, industrialist Manuel “Matty” count until the Canadian money on DRIC. But both House and Sen- [email protected]’ Moroun is trying to twin the 81- ing Resource Group Inc. year-old Ambassador Bridge he The indirect jobs are based on bought in 1977 as a $30 million what DRIC documents call the through Michigan to other points Many of the jobs are expected to and general laborers. stock play from investor Warren “ripple effect” from federal fund- south, east and west, he said. be very short-term, as well. Off-site jobs will include those Buffett, a project opposed by ing: “The construction workers “It’s unlikely to (create) regional “Many of the workers only work manufacturing the material need- Canada because of traffic worries spend their earnings on goods and economic benefit if you’re simply for a brief period of time, given ed to build the bridge and truckers in Windsor. services, starting the ‘ripple effect’ building excess capacity” he said. their specialization. A bulldozer op- to haul material and equipment. Moroun claims he has a of DRIC dollars moving through “You don’t find these sorts of infra- erator is in early to grade and re- “Steel fabrication shops will be government-sanctified monopoly the local economy.” structure projects turning the shape the land, but his work gives working around the clock,” he on bridge traffic in Detroit and is MDOT bases its job estimates on economy around. The problems way to others’,” said economist said, noting that could be another believed to collect about a U.S. Federal Highway Administration with Detroit’s economy are far big- Ronald Utt, a research fellow in eco- 300 people working on the project. $60 million annually from tolls. formula that says for every $1 mil- ger than a bridge. nomic policy studies at the conserv- “For every job you see at the Source: Crains’ research lion spent on construction — in “The economic benefit seems to ative Heritage Foundation think tank bridge, there are 10 you don’t see.” OBS FORECAST year 2000 dollars — seven full-time be really sketchy,” he said. in Washington, D.C. He formerly It’s not yet known if there will J equivalent jobs and 18 indirect jobs Others say jobs could be lost else- worked for the U.S. Department of be organized labor provisions for The Detroit River International are created. Since many construc- where because of DRIC-drained re- Housing and Urban Development, Office DRIC, but Walker said he’s confi- Crossing bridge is predicted to tion jobs are not year-round, the for- sources — the economic version of of Management and Budget and the dent most will be union jobs. create an estimated 775 mula considers a blend of workers robbing Peter to pay Paul. U.S. Chamber of Commerce. “All the labor on that project will permanent full-time jobs, based on “Generally, new bridges, tunnels, In a 2008 report, Utt noted: “Such be building trades members from staffing at the Blue Water Bridge in from different trades over the Port Huron and the Peace Bridge in course of a year to produce one full- etc., especially international ones, projects never create anything ap- the state of Michigan,” he said. Buffalo, N.Y. Here’s a breakdown: time job. do not create many lasting jobs lo- proaching the benefits projected Others think the on-site job 400 U.S. Customs and Border The construction job predictions cally and they may destroy local through the misuse of these mod- numbers will be even larger. Protection don’t include any discussions of jobs as they ease traffic through a els, but there always seem to be lo- “I’d say we are not talking in 200 brokers how many positions would be filled bottleneck, especially if there is a cal boosters, businessmen and terms of hundreds of jobs, but push to improve the access infra- politicians who are willing to exag- rather in terms of thousands of 70 at tolls by unemployed labor, how many would elevate employed people to structure on each side,” said Roger gerate the potential benefits.” jobs,” said Chris Fisher, president 20 maintenance better-paying jobs, pay rates or how Vickerman, an economics profes- of the Madison Heights-based trade 75 at duty free much of the work would be done by sor at the University of Kent at Brus- The DRIC evangelists group Associated Builders and Con- 10 administrative specialists from elsewhere. sels who has studied major trans- tractors of Southeastern Michigan. portation infrastructure projects DRIC has no shortage of back- That’s because of the project’s BREAKING DOWN THE TOLL around the world. He’s also founder ers, including for its jobs claims. scope, including a new highway The overall price of the Detroit The skeptics of the Centre for European, Regional Zane Walker, president of the interchange and the need to create River International Crossing is Non-aligned observers say the and Transport Economics. Greater Detroit Building and Construc- steel, concrete and other materials $5.3 billion, and that includes job estimates are inflated, especial- Vickerman warns that long-term tion Trades Council that represents to construct everything. Canadian highway work linked to ly for the hard-to-quantify long- jobs from projects such as DRIC are more than two dozen local unions Jim Lyons, executive director of DRIC but not officially part of the term predictions. hard to measure. Actual construc- with about 35,000 members, said the Heavy Construction Association of partnership’s work. The work on tion jobs are easier to calculate. almost all of the jobs will be new. Windsor, last year told the trade the bridge, plazas, interchanges “These numbers are really pub- “The impact is very difficult to The contractors may bring their journal Daily Commercial News and approaches is estimated at lic relations numbers,” said $2.1 billion. It’s broken down by Samuel Staley, director of urban detect as the benefits are very thin- current employees in to work on and Construction Record he pre- MDOT as: and land use policy for the Reason ly spread over a very wide area,” he the bridge, opening jobs on other dicted 500 to 600 jobs a year on the U.S. bridge and approach: Foundation, a Los Angeles-based said via e-mail from Belgium. “Con- projects elsewhere, he said. Canadian side. $501.6 million. libertarian think tank. “When we struction jobs are the main job cre- He said about 300 people on-site With similar numbers on the Canadian bridge and approach: do the post-project analysis, the ation from any infrastructure pro- at the bridge during construction Michigan side, that would be about $447.4 million jobs actually created are far lower ject, and these are usually able to be is a fair assessment. A similar 6,000 jobs over its five-year con- U.S. toll plaza: $150.6 million than actually projected.” calculated fairly accurately.” number could be working nearby struction time frame. However, those construction jobs on related projects. “We’re all for the jobs. Let’s U.S. General Services People will be hired to build the Administration plaza: $270 million span, but little beyond that, he said. are not always local hires, he said. He expects anywhere from 50 to build 10 of them if that’s what we “For complex projects (like 100 iron workers to be working on need,” the construction trade Canadian plaza: $387.6 million “The construction jobs will ma- bridges and tunnels) typically only a the bridge itself, along with a num- council’s Walker said. “This is go- I-75 interchange: $420 million terialize, but all the others simply will not,” Staley said. small percent of these fall locally as ber of long-boom operators, car- ing to be huge for this economy.” Source: Michigan Department of Transportation That’s because what crosses the they tend to use specialist workers penters, painters, electricians, Bill Shea: (313) 446-1626, border are largely goods moving who are highly (itinerant),” he said. equipment mechanics, engineers [email protected] 20110124-NEWS--0021-NAT-CCI-CD_-- 1/21/2011 5:51 PM Page 1

January 24, 2011 CRAIN’S DETROIT BUSINESS Page 21 One D: Data Driven Detroit to continue scorecard www.crainsdetroit.com ■ From Page 3 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or sance” and the Detroit Regional troit to house the regional score- [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Chamber’s “Design Regional De- 2010 SCORECARD card developed by One D, Metzger 0460 or [email protected] troit” initiative, both of which said. The scorecard developed a few years ago by the former One D collaborative of DEPUTY MANAGING EDITOR Jennette Smith, (313) 446-1622 or [email protected] laid out economic development civic groups is now overseen by the nonprofit Data Driven Detroit. The 2010 “Measuring ourselves is a criti- plans for the region, One D began cal tool for progress,” he said. SENIOR EDITOR Bob Allen, (313) 446-0344 or scorecard, released today at www.onedscorecard.org, measures Southeast [email protected] collaborating with other organi- Michigan’s performance against that of other metropolitan areas — with “And the fact that Data Driven COPY DESK CHIEF Gary Piatek, (313) 446-0357 zations on efforts in its five priori- about 60 economic, education and quality-of-life indicators — and the state Detroit is seen as objective and is- or [email protected] ty areas: economic prosperity, ed- against other states in about 40 areas. Among the highlights of the 2010 n’t tied to any other organization ASSISTANT NEWS EDITOR Jeff Johnston, (313) ucational preparedness, regional scorecard: … adds credibility to the score- 446-1608 or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or transit, race relations and im- Metro Detroit continued to rank ownership, with 30 percent of card.” [email protected] proved quality of life. fourth out of 327 metro areas for businesses in the state owned by One D eliminated the duplica- WEB DEVELOPER Steve Williams, (313) 446- Over the past couple of years, export value, based on 2008 data. women. tion of work during its existence 6059, [email protected] Michigan had the highest rate of WEB EDITOR Gary Anglebrandt, (313) 446-1621, One D developed an annual score- Southeast Michigan is holding and increased collaboration [email protected] utility patents per 10,000 residents card to show progress the region strong on home ownership, with among major regional organiza- EDITORIAL SUPPORT Robertta Reiff (313) 446- was making in those areas. among select Midwest states and 71 percent of occupied housing tions, Doug Rothwell, president 0419, YahNica Crawford, (313) 446-0329 ranked 13th among all states in That scorecard, available at units occupied by owners vs. and CEO of Business Leaders for NEWSROOM (313) 446-0329, FAX (313) 446- 2008. renters. That ranked the region 1687 TIP LINE (313) 446-6766 www.onedscorecard.org, mea- Michigan, wrote in a text mes- Michigan ranks seventh among fourth of 54 reporting regions REPORTERS sures Southeast Michigan’s per- sage. all states for female business across the country. Daniel Duggan: Covers retail, real estate and formance against that of other But its work is not done, he said. hospitality. (313) 446-0414 or [email protected] metropolitan areas, with about 60 Michigan Nonprofit Association. “Regional collaboration is an Jay Greene, senior reporter: Covers health care, economic, education and quality- Mena McLean, community in- ongoing process that never ends … insurance and the environment. (313) 446-0325 or [email protected]. of-life indicators. It also measures volvement manager at Deloitte, Measuring these relationships have and will Chad Halcom: Covers law, non-automotive Michigan’s performance against and Pam Iacobelli, marketing “ continue to endure as the One D manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or that of other states, with roughly director at Huntington, are ourselves is CEOs continue to meet on an ongo- [email protected]. co-chairs. Tom Henderson: Covers banking, finance, 40 indicators. ing basis,” Rothwell said. technology and biotechnology. (313) 446-0337 or Data Driven Detroit is assuming The Human Resources Exec- a critical One D’s spirit and work will be [email protected]. Nancy Kaffer: Covers small business, the city of responsibility for the scorecard, utives Initiative, a collaboration carried on by other organizations, Detroit, Wayne County government. (313) 446- relying on marketing support from of human resource leaders tool for said Maud Lyon, director of the 0412 or [email protected]. Bill Shea, enterprise editor: Covers media, the Detroit Regional Chamber and from the region’s largest com- Cultural Alliance. advertising and marketing, the business of sports, community outreach support from panies that was formed to gain progress. “Obviously, there’s been a lot of and transportation. (313) 446-1626 or ” [email protected]. Detroit Public Television. an understanding of talent at- change in our community, and we Nathan Skid: Multimedia reporter. Also covers the Other One D initiatives transfer- traction and retention chal- Kurt Metzger, were always about trying to be effi- food industry and entertainment. (313) 446-1654, Data Driven Detroit [email protected]. ring to other groups are: lenges, is transferring to a col- cient and trying to find the right Sherri Welch: Covers nonprofits and services. The Corporate Philanthropy laboration of the corporate homes for things to advance the re- (313) 446-1694 or [email protected] Dustin Walsh: Covers auto suppliers, steel, higher Workgroup, founded with Hunting- executives, the Community College gion,” she said. education and Livingston and Washtenaw ton National Bank to work with cor- Consortium of Southeast Michigan Given its mission to transform “We really feel that these counties. (313) 446-6042 or [email protected] LANSING BUREAU porations to jointly and more ef- and Issue Media Group, to market data into the information that will changes do that.” Amy Lane: Covers business issues at the Capitol, fectively affect key issues in the job opportunities in Southeast lead to better decision-making, it Sherri Welch: (313) 446-1694, telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or region, is transferring to the Michigan. makes sense for Data Driven De- [email protected] 115 W. Allegan, Suite 220, Lansing 48933. ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 ADVERTISING SALES Christine Galasso, Matthew Law firms: Practices find growth without hiring J. Langan, Lori Tournay Liggett, Tamara Rokowski, Cheryl Rothe, Dale Smolinski ■ From Page 3 CLASSIFIED SALES (313)-446-0351 MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- now into the first quarter. Just quired the attorneys of Nashville- 0416 or [email protected] looking ahead from right now, I based Stewart, Estes & Donnell PLC. EVENTS MANAGER Nicole LaPointe would expect to see another pretty Now we all have to find Since then, it has acquired all the MARKETING ARTIST Sylvia Kolaski good year.” “ attorneys of Las Vegas-based Gibson SALES SUPPORT Suzanne Janik, YahNica Crawford CIRCULATION Candice Yopp, Manager. Last year was also Howard & efficiencies in the way we Lowry Burris LLP and a small Phoenix MARKETING COORDINATOR Kim Winkler Howard’s first full year of business law office. PRODUCTION MANAGER Wendy Kobylarz since it acquired the 19 attorneys provide services. The firm increased revenue PRODUCTION SUPERVISOR Larry Williams of Chicago-based DeFrees & Fiske ” from $100.5 million in 2008 to CUSTOMER SERVICE LLC in late 2009. Rex Schlaybaugh, $105.8 million in 2009. Dickinson’s MAIN NUMBER: Call (877) 824-9374 or write Dykema Gossett PLLC [email protected] Outside of the new Chicago of- previous Toronto office, opened in SUBSCRIPTIONS $59 one year, $98 two years. fice and a small expansion in Las late 2008 with the acquisition of a Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state Vegas, its attorney head count is motive companies or property More work was the way for you to gambling boutique practice, is ex- rate for surface mail. Call (313) 446-0450 or largely unchanged. The company within the firm’s corporate and grow” revenue. pected to move in with Ayles- (877) 824-9374. SINGLE COPIES: (877) 824-9374. had 123 lawyers in late 2010, com- real estate practices. “Today, the client comes to us worth. REPRINTS: (800) 290-5460, ext. 125; (717) 505- pared with 104 before the DeFrees U.S. auto sales were nearly 11.6 with set budgets for a certain legal Michael Hartmann, CEO of De- 9701, ext. 125; or ashley.zander@theygsgroup .com. merger. The attorney head count million during the year, compared service, and some actually don’t troit-based Miller Canfield Paddock TO FIND A DATE A STORY WAS PUBLISHED: in Southeast Michigan was un- with 10.4 million in 2009, according want part of their budget to go for and Stone plc, also said his firm is (313) 446-0367 or e-mail [email protected]. changed at 64. to Autodata Corp. Analysts for the a new attorney, 90 days out of law still reviewing 2010 but said both CRAIN’S DETROIT BUSINESS IS PUBLISHED BY And that’s the rub. Like Howard automakers have predicted 12.5 school, to cut his teeth and follow a revenue and profits per equity CRAIN COMMUNICATIONS INC. & Howard, other local law firms million to 13 million light-vehicle partner around. partner are expected to be up CHAIRMAN Keith E. Crain PRESIDENT Rance Crain saw growth in revenue and/or sales in 2011. “Now we all have to find effi- “modestly” over 2009, while head SECRETARY Merrilee Crain profitability last year, but it came Dykema laid off attorneys in ciencies in the way we provide ser- count was nearly flat. TREASURER Mary Kay Crain without hiring more local attor- “The national figures we receive Executive Vice President/Operations 2009 and 2010, but Schlaybaugh vices. In a sense it’s better for us, William A. Morrow neys. Instead, firms made acquisi- said he does not expect layoffs in and for the client, not to add more wouldn’t suggest that overall de- Group Vice President/Technology, tions in out-of-state markets or mand for legal services is making Manufacturing, Circulation 2011. work.” Robert C. Adams found efficiencies that essentially But Dykema is taking on fewer Dickinson Wright PLLC also has any dramatic rise,” he said. “It’s Vice President/Production & Manufacturing made the same number of lawyers summer associates on a tradition- reported a fairly constant attorney not like there’s a ton of more legal Dave Kamis Chief Information Officer more productive or profitable. al career path to becoming first- head count, at around 260, work for the legal services to justi- Paul Dalpiaz Dykema Gossett PLLC reported year lawyers, in favor of hires of throughout a series of expansions fy adding associates and (billable) Corporate Circulation/Audience Development Director profits per equity partner last year attorneys with an established book into new markets since late 2008, hours. Kathy Henry were up 10.5 percent over 2009, at of business. It also is finding effi- as acquisitions largely offset attri- “Some of that growth out there is G.D. Crain Jr. Founder (1885-1973) well above $500,000, said Chairman ciencies in its legal services for tion. in finding efficiency, for sure. Our Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: and CEO Rex Schlaybaugh. clients with fixed legal budgets, But law firm CEO William head count is probably just about 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 The firm has completed a pre- Schlaybaugh said. Burgess said the latest acquisition even with last year — a few left and Cable address: TWX 248-221-5122 AUTNEW DET liminary close on its financials The company had 11 summer as- does add to attorney head count: a few joined. But big firms are more CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 and will prepare a more thorough sociates in 2010, compared with 22 On Jan. 1, the firm added the 25 at- cost-conscious and using technolo- is published weekly, except for a special issue the third week of January, a special issue the fourth review of its results in the first in 2008. Schlaybaugh said he ex- torneys of Toronto-based Ayles- gy to help” with productivity. week of August, and no issue the third week of December by Crain Communications Inc. at 1155 quarter. But Schlaybaugh expects pects the summer program to con- worth LLP to its office there. That Miller Canfield reported $143 Gratiot Ave., Detroit MI 48207-2732. Periodicals annual revenue for Dykema will tinue at around half its traditional brings Dickinson to nearly 290 at- million revenue in 2009, and Hart- postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to be either flat or slightly off from size in the future. torneys, including 28 in Toronto, mann expects the firm grew rev- CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- the $175.8 million reported in 2009. “About 10 years ago, we were in and 10 offices, including five out- enue by less than 5 percent and 9732. GST # 136760444. Printed in U.S.A. Like Davis, Schlaybaugh said he a struggle to keep up with all the side Michigan. modestly improved profits this Entire contents copyright 2011 by Crain Communications Inc. All rights reserved. has noticed recovery in the econo- work in the market, and that Dickinson’s pre-acquisition head past year. Reproduction or use of editorial content in any my, the automotive industry and meant a lot of hiring and attorneys count at the end of 2010 was the Chad Halcom: (313) 446-6796, manner without permission is strictly prohibited. in private equity interest in auto- putting in long hours,” he said. same as in early 2009, when it ac- [email protected] 20110124-NEWS--0022-NAT-CCI-CD_-- 1/21/2011 6:22 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 24, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 15-21

new exhibit “Woodward global business strategy not resubmit a proposal by Avenue: Mile by Mile.” Blue Cross’ bid and development. She re- the Jan. 21 filing deadline, Maybe Illinois The goal was to artistical- places Chris Preuss, who is citing the drawn-out appli- ly interpret every intersec- starting a communications cation process. tion from Jefferson Avenue to dismiss consulting practice. Ⅲ Doctors’ Hospital of in Detroit to the city of Pon- Ⅲ Patrick Paige becomes Michigan in Pontiac is ex- tiac. Each photographer president and CEO on Feb. pected to decide this month tax hike will was assigned a designated lawsuit gets 1 of Troy-based mechanical whether to close the hospi- stretch of Woodward. fastener supplier Acument tal or lay off a large number The exhibit is at the Bean Global Technologies Inc. of its 690 employees be- and Leaf Café in Royal Oak, response Paige, who had been vice cause it has been difficult 106 S. Main St., through president and chief adminis- to raise cash for capital im- pay off here he U.S. Department of provements. Feb. 25. trative officer, succeeds Exposure.Detroit was Justice and the Michi- Richard F. Dauch, who is leav- ith the corporate nies and the fund be housed formed in 2006 by a few lo- T gan attorney gener- ing to pursue other opportu- OTHER NEWS tax rate in Illinois in their Wayne State Universi- cal photographers shooting al’s office responded to last nities. Dauch is the son of W hiked to 9.5 percent ty-affiliated incubator. photos in and around the month’s motion by Blue Richard E. Dauch, founder Ⅲ Macomb County’s labor from 7.3 percent, Jimmy John’s Some in Ann Arbor and city. It has since grown into Cross Blue Shield of Michigan and CEO of automotive sup- force expanded 2.3 percent Gourmet Sandwiches is consid- Oakland County thought it a network of artists and to dismiss an antitrust law- plier American Axle & Manu- to 353,976 people in Novem- ering moving from its Cham- shortsighted to base the friends sharing work and suit against the insurance facturing Holdings Inc. ber, compared with 345,888 a paign headquarters to anoth- fund in Detroit when their collaborating on projects. company by arguing that Ⅲ Phil Frame, spokesman year earlier, said Macomb er state, according to Crain’s counties show more startup For details, visit expo- Blue Cross doesn’t have a for Ambassador Bridge Community College President Chicago Business. activity and job creation. suredetroit.net. free pass to engage in anti- owner Manuel Moroun, has James Jacobs. He predicted Multiple states are con- They lobbied for the fund to competitive conduct from resigned as director of com- the county’s jobless rate tacting the sandwich maker be run by Ann Arbor Spark or the U.S. Supreme Court or munications for Warren- would fall below its current after founder Jimmy John Li- Automation Alley. Coupon use still growing from state insurance regu- based CenTra Inc., the Detroit 12.4 percent this year. autaud said, “My family and The NEI decided the fund Even as the recession ap- lators. International Bridge Co.’s Ⅲ U.S. Rep. John Dingell, I are out of here.” would be in TechTown, but parently eased, Americans Federal and state offi- parent company. He said he D-Dearborn, says he’ll be a Hmm ... wouldn’t Jimmy fears that it would be De- continued their love affair cials have charged that wants to expand his Shelby candidate for re-election in John’s be a good addition to troit-centric proved un- with coupons in 2010 — Blue Cross illegally pres- Township.-based Outcome 2012, going for his 29th a roster of national chains founded. much to the delight of Valas- sured some hospitals to Assurance Corp., a public re- term in Congress. headquartered in metro De- In a re- sis Communications Inc. sign improper “most fa- lations firm. Ⅲ West Bloomfield troit, including Little Caesar view of 2010, Marketers distributed 332 vored nation” contracts, re- Ⅲ Joseph Walsh, a former Township-based Lormax Enterprises and Domino’s? managing billion consumer packaged- quiring them to charge Ford Motor Co. executive, has Stern Development Co. plans If Gov. Rick Snyder’s call director Ma- goods coupons last year, the higher prices to competing been appointed CEO of the to buy a former General Mo- to kill the Michigan Busi- hendra Rams- largest single-year distribu- health insurers. 20-member DMC Legacy tors Co. plant in Wyoming, ness Tax is a success, other inghani re- tion recorded in the U.S., Blue Cross called the Board, formed to oversee Mich., with the hopes of Illinois companies could be ports that according to a study by NCH lawsuit flawed and said about $140 million in chari- finding a manufacturing user for the property. ripe to lure here. Michigan Detroit com- Marketing Services Inc., that it is protected from table contributions made to Ⅲ would warmly welcome, panies spon- which is owned by Livonia- lawsuits because it is regu- the Detroit Medical Center. It The U.S. Small Business say, Chicago’s United Air Administration has signed on Ramsinghani sored either based Valassis, a newspa- lated by state government also is charged with moni- Lines Inc. and Peoria’s Cater- by Tech- per coupon and direct-mail and has Supreme Court toring compliance with the to the Michigan Statewide pillar Inc. Town or Bizdom U got 35 per- marketing firm. precedent. The case likely sale agreement that trans- Entrepreneurship Support cent of funding, Spark-spon- Distribution was up near- will go to trial, said Mark ferred the assets of the DMC System and portals. The Startup biz fund defies sored companies got 44 ly 7 percent from 2009. Kopson, chairman of the to Vanguard Health Systems. system, funded by the New percent and Automation Al- Newspaper inserts con- health care practice at Plun- Economy Initiative, helps en- early parochial fears ley-sponsored companies got tained almost 88 percent of kett Cooney. trepreneurs link with assis- 17 percent. coupons distributed. COMPANY NEWS tance. The U.S. Department The launch of the $5 mil- The fund has invested of Commerce joined the sys- lion First Step Fund last Ⅲ Borders Group Inc. re- tem in September and $1.1 million in 23 compa- BITS & PIECES ON THE MOVE portedly has hired bank- March was preceded by nies, which found $13.4 mil- hopes to take the pilot pro- more than its share of poli- Ⅲ The Palace of Auburn Ⅲ Donald Snider, president ruptcy attorneys as it con- ject nationwide. lion in additional funding, and CEO of Walden Foods in tinues talks on refinancing ticking and turf defending. created 120 jobs, were grant- Hills and DTE Energy Music Ⅲ Detroit’s TechTown Ann Arbor, has been named its debt. The company also The New Economy Initiative ed 85 patents and generated Theatre were named among plans to finish the build-out the Michigan Economic Devel- said it has eliminated 45 put up the money to fund about $7 million in revenue. the top U.S. entertainment of its Tech One building af- startup and very early stage facilities for 2010 by publi- opment Corp.’s senior vice jobs to cut costs. ter landing $4.1 million in companies up to $50,000 cations Pollstar and Bill- president of urban econom- Ⅲ International Automotive funding from the U.S. De- with the aim of letting them Cruise Woodward Avenue board. The theater was list- ic development. Components Group, the auto partment of Housing and Ur- Ⅲ parts supplier owned by grow enough so they could and never leave the café ed as the most-attended Peter Karmanos Jr., ban Development. attract more money from amphitheatre for the 20th chairman billionaire Wilbur Ross, has Ⅲ Bella Marshall, Wayne venture capitalists. What do you get when consecutive year. The and CEO of started work to hold an ini- County COO and wife of You might have thought you send 52 photographers Palace was listed as the Detroit- tial public offering this Detroit businessman Don there was $500 million at to shoot 26 miles of Michi- eighth-best-selling U.S. are- based Com- year, Bloomberg News Ser- Barden, has dropped a move stake. TechTown folks were gan’s most iconic stretch of na. Both are owned by puware vice reported, citing anony- to have a court-appointed adamant that the money pavement? Palace Sports & Entertain- Corp., said mous sources. conservator oversee Bar- should go to Detroit compa- Answer: Exposure.Detroit’s ment Inc. he’s aiming Ⅲ The U.S. Supreme Court den’s business and legal de- to retire by has rejected a bid by Ford cisions. 2013, when Motor Credit Co. for a $16 mil- Ⅲ The Detroit Brownfield Karmanos he turns 70 lion refund on its Michigan Redevelopment Authority has and the Detroit company he taxes in a dispute over the OK’d brownfield tax-incen- founded turns 40. power of states to impose tive plans to restore three Ⅲ levies retroactively. West Grand Boulevard resi- Allan Gilmour, acting Ⅲ BEST FROM THE BLOGS president of Automation Alley, the dential buildings, by S. Dot Troy-based technology as- Development LLC, and con- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Wayne State University, sociation, has committed to vert an east side industrial was elected invest $250,000 in Ann Ar- building as a warehouse, Gov. not linked to new VC fund News owner changing CEOs by the bor-based InfoReady Corp., by Metro International Trade Gov. Rick Snyder had The parent of The school’s completing the startup’s Services. nothing to do with the Detroit News is board of seed funding of $1.1 mil- new $120 million searching for a new governors lion. InfoReady is a spinoff Venture Michigan Fund CEO amid a senior to be the from Ann Arbor-based IT OBITUARIES II, which will be management shakeup Gilmour universi- services company GDI In- Ⅲ William B. DeAngelis, administered directly by and rumors of a ty’s 11th foTech Inc. president of DeAngelis Elec- Credit Suisse. merger. president, effective imme- Ⅲ Orion Township-based tric Co., died Jan. 15. He was diately. Advanced Defense Vehicle 87. Ⅲ Linda Marshall has been Systems Corp., which fought Ⅲ Alberta Muirhead, for- named president of General for a chance to compete mer co-owner of Muirhead’s Motor Co.’s OnStar teleme- with General Dynamics Land department store in Dear- Reporter Tom Henderson’s blog about accounting, Reporter Bill Shea’s “For Immediate Release” blog on try unit effective Feb. 1, Au- Systems and BAE Systems born and a noted civic vol- banking, venture capital and high tech can be found the media, transportation and marketing can be found at www.crainsdetroit.com/henderson at www.crainsdetroit.com/shea tomotive News reported. Inc. on a major U.S. Army ve- unteer and philanthropist, She had been director of its hicle contract, said it would died Jan. 14. She was 91. DBpageAD.qxp 1/14/2011 4:24 PM Page 1

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