Groups Rally to Help Detroit 3

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www.crainsdetroit.com Vol. 24, No. 49 DECEMBER 8 – 14, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN AAA gives MGM Grand a Mortgage rates pair of 4-diamond ratings MGM Grand Detroit has earned two top honors in the hospitality industry, winning a pair of Four Dia- mond awards from Heathrow, Fla.-based AAA. dip, then ‘boom’ It marks the first property in Detroit to get the award for both a restaurant and a hotel, winning Brokers beat drum; blitz of MORTGAGE RATE DROP for the 400-room hotel and Ⅲ What happened: During the the Saltwater restaurant. refinancing may save year week ending Nov. 28, the John Hutar, vice president national average for 30-year, of hotel operations, said he fixed-rate mortgages dropped to BY DANIEL DUGGAN the hole, said Brian Siebert, requested that AAA con- 5.47 percent from 5.99 percent CRAIN’S DETROIT BUSINESS president of Waterford Town- sider the hotel and Saltwa- the week before. ship-based Watson Financial ter two months after the Ⅲ What caused the drop: The The battered mortgage bro- Group. property Federal Reserve Board’s kers who’ve spent the last “We’ve had a few really opened last announcement to pledge $500 year under the dark cloud of a good days,” he said. “But November. billion for the purchase of credit crunch found a bright we’re still down 70 percent “For NATHAN SKID/CRAIN’S DETROIT BUSINESS mortgage-backed debt and $100 spot just before Thanksgiving from two years ago.” hoteliers, Ronnie Jamil, co-owner, Bella Vino Fine Wine billion for loans from Freddie when interest rates dropped Nonetheless, brokers aim to Mac and Fannie Mae. this is and Spirits in Farmington Hills, said delivery restrictions would affect about 20 percent of almost half a percentage keep the momentum going. Ⅲ what dri- The result: Nationally, his business. point. Mortgage brokers blasted refinancing applications more ves us,” he With the resulting surge in their recent clients with e- than tripled for the week ending said. “Af- business that spilled into last mails and phone calls last Nov. 28, compared with the ter I signed week, brokers have stepped week, and Web sites for finan- previous week. Overall, that letter, mortgage applications more than up their marketing efforts in cial institutions put links for I asked the doubled. Alcohol bill hopes of salvaging a rough refinancing programs front- staff if year. and-center. Source: Survey of mortgage they’re all At the very least, it’s a applications by the Mortgage Bankers in for this. Association. chance to start digging out of See Mortgages, Page 29 MGM Grand They were, so off we went.” uncorks The two awards will be the only new awards is- sued for Southeast Michi- gan during an event March biz concern 23 at the Detroit Marriott Renaissance Center. BY AMY LANE Groups rally to help Detroit 3 In Detroit, the only other Four Diamond properties AND NATHAN SKID are the Iridescence restau- CRAIN’S DETROIT BUSINESS rant at MotorCity Casino and LANSING – When Ronnie Jamil looks Efforts: Car-buying incentives, lobbying the Atheneum Suite Hotel. In at House Bill 6644, he sees some of his BY BILL SHEA IteroText itself will pay for 50 percent of its Southeast Michigan, there business in jeopardy. CRAIN’S DETROIT BUSINESS employees’ monthly lease or finance payment on are now 10 hotels and nine That’s because the bill, which would restaurants with the award. any new GM vehicle for two years. ban retailers from shipping wine and oth- As the debate rages in Congress and in living The highest possible rat- Offers on the site include discounts on space er types of alcohol directly to customers, rooms over federal aid for the U.S. auto industry, ing is five diamonds, an leases, printing and media services for auto sup- extends to catered events. local grassroots and professional ef- pliers and free car washes and free award held in Michigan “We are a unique wine shop in a nice only by the 1913 Room in forts are emerging to support govern- gas for buyers of new U.S. cars. neighborhood of people that like to be ment help for Detroit and to encour- HELPFUL IDEAS Birmingham-based MA Engineer- the Amway Grand in Grand catered to,” said Jamil, co-owner of Bella Rapids. age companies and their employees Have an idea or know ing has a listing offering its employ- Vino Fine Wine and Spirits in Farmington to buy U.S. vehicles. of a company or ees $100 a month for a year on pay- Nancy Cain, public-rela- Hills. “This is a competitive edge we have tions manager for AAA, Bloomfield Township-based Itero- organization doing ments for any new Chrysler L.L.C., over box chain stores, that we can offer Text Translation Services, which does something to make a Ford Motor Co. or General Motors said the awards are given delivery to residential homes and busi- difference? Send it to international technical information Corp. vehicle. after multiple visits are nesses. We cater food, and if someone is [email protected]. translations for businesses, last week “We’re a (Detroit-area) company made to look at hundreds throwing a party and they want a few cas- We’ll add it to our launched a Web site, supportthe and the auto industry played a role of items, such as service, es of beer and bottles of wine, we can do growing online list. autoindustry.com, aimed at encour- in helping us succeed,” said owner cleanliness and amenities. that. “It recognizes the com- aging suppliers and other companies Salim Sessine. “They’re asking us “This bill is trying to eliminate or disal- for help, and we should rescue them. We want to mitment to the best ser- low us to distribute this to our cus- to beef up incentives for their employees to buy vice, overnight lodging and domestic vehicles. encourage people to buy cars.” tomers.” Traditional lobbying remains at the fore- restaurants,” she said. Jamil is emeritus director of the Associ- The site (and its companion portals on social — Daniel Duggan networks Facebook, LinkedIn and Twitter) also front of efforts to help. ated Food & Petroleum Dealers, which along “The No. 1 thing we’re doing is talking to See This Just In, Page 2 serves as a clearinghouse for examples of such See Alcohol, Page 28 incentives. Listings are free. See Detroit 3, Page 28

Employers, community Crain’s picks 12 who made news, colleges unite on job

NEWSPAPER grew firms, Page 11 training, Page 3 20081208-NEWS--0002-NAT-CCI-CD_-- 12/5/2008 6:38 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS December 8, 2008

tor. New tenants could begin will see an average 25 percent vise civil and criminal penalties vices and for providing complex THIS JUST IN moving into the building by Jan- rate cut, Holyfield said. for fraudulent redemptions. survey research, concept and uary or February, said Assistant — Amy Lane — Nancy Kaffer product testing, the company ■ From Page 1 Wayne County Executive Turkia said. Mullin. Bills target bottle-return fraud New clinic to serve homeless Market Strategies has worked Incubator lands 2nd tenant — Chad Halcom with clients in Europe and Asia A slate of bills that aims to cut Detroit Rescue Mission and Super for 10 years. An early stage pharmaceutical down on cross-state returnable All Year Detroit plan to open a med- Earlier this year, Market company developing drugs to Consumers seeks rate increase smuggling is one step closer to ical clinic for homeless and unin- Strategies opened an office in treat immune disorders and can- Consumers Energy Co. is seeking passage. sured women and children Dec. Hong Kong. The company has cer will be the second tenant in a a $215 million increase in its elec- Michigan has a high rate of bot- 17 on the first floor of a former St. five main offices and several new business incubator devoted tricity rates. tle returns, according to a legisla- John Health System medical build- satellite offices throughout the to the life sciences, inside a for- The rate case, filed in Novem- tive analysis accompanying the ing in Highland Park. mer Pfizer Inc. building that hous- United States. ber with the Michigan Public Ser- proposed bills, but its 10-cent bot- The organizations so far have — Julie Dawso es Esperion Therapeutics in Ply- vice Commission, reflects invest- tle deposit makes the state a tar- raised $410,000 to fund operations mouth Township, officials ments and improvements in get for fraudulent returns. and have commitments from the organizing the new incubator Consumers’ electric distribution House Bills 6694, 6441, 6442, Wayne State University School of Wolverine, EaglePicher confirmed Friday. system, environmental controls 6443, 6460 and 5147 were sent to Nursing for student and staff nurs- Ann Arbor-based Lycera Corp., a announce move to Dearborn at power plants, and factors in- the Michigan Senate last week af- es, Great Lakes Medical Supply and startup pharmaceutical firm cluding inflation, higher mainte- ter passing the House of Repre- others, said Chad Audi, CEO of De- Wolverine Advanced Materials founded last year by president nance and borrowing costs, said sentatives. troit Rescue Mission and a mem- and its parent company, Ea- and University of Michigan biologi- ber of SAY Detroit’s board. glePicher Corp., said today they cal chemistry Professor Gary Jeff Holyfield, Consumers’ director HB 5247 would require bever- of news and information. Also in- age containers to be marked in a The 24-hour, seven-day clinic were opening a new headquar- Glick, will join Esperion as one of plans daily pickups of women ters and technical center in Dear- two anchor tenants with 8,000 cluded is $26 million in assis- way that enables so-called re- tance for low-income customers. verse vending machines to identi- and children from shelters in De- born. The companies both were square feet of space inside the troit and Highland Park and It is the first Consumers rate fy containers sold in Michigan, headquartered in Inkster. 57,518-square-foot building at M- three designated stops in the case filed under new Michigan and would also require machines The new Dearborn site will 14 and Beck Road. cities to the clinic for care, he law that phases out a subsidy for have the ability to detect such a house administrative offices and The new incubator program, said. residential customers and bases mark. Currently, bottle return headquarters operations for Ea- called the Life Sciences and Inno- — Sherri Begin Welch vation Center, will devote its re- rates on cost of service. machines simply verify that the glePicher and Wolverine. maining 26,000 square feet of ob- Under Consumers’ filing, resi- container is a brand and size sold Wolverine will also house R&D tainable space to eight to 10 dential customers will see a 10 in the retail establishment. Market Strategies opens and testing of sound dampening smaller startup operations. The percent increase, raising average Members of the state’s trade as- and sealing technologies for its incubator could reach 70 percent monthly bills by about $10, while sociations involved in the sale of research office in London automotive customers, as well as occupancy sometime in 2009, said small commercial and industrial beverages have said that such Livonia-based research and commercial sales and marketing Michael Finney, president and customers will see an increase of technology would be prohibitive- consulting firm Market Strategies operations at the facility. CEO of Ann Arbor Spark. about 5 percent. ly expensive. International has opened a London Wolverine is a supplier of spe- Spark and the Greater Wayne Rates will remain flat for large The bills would set aside some office, led by European Managing cialty materials and sound damp- County Economic Development Corp. commercial and industrial cus- state money from its bottle de- Director Bob Qureshi. ening solutions to the auto indus- have created a nonprofit corpora- tomers, and K-12 schools, commu- posit funds to pay for retrofitting Researchers located in London try. tion to own and run the incuba- nity colleges and universities machines. Another bill would re- will be responsible for client ser- — Ryan Beene UP

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December 8, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S New job training plan in works INDEX $166M question: Are the capturing future employment Blue Cross losses because of the bad Employers would contract with community colleges growth.” economy or bad Sarah Hubbard, vice president of management choices? BY AMY LANE from the new jobs program launched in Iowa in 1983, government relations at the Detroit Page 5. CAPITOL CORRESPONDENT created. and it has drawn bipartisan support. Regional Chamber, said it’s a creative It’s about Under the Michael Hansen, president of the approach amid difficult economic us: Detroit Regional LANSING — Michigan communi- Michigan New Michigan Community College Associa- times. ty colleges, the Michigan Economic De- “To be able to do innovative Chamber’s Jobs Training Pro- tion, said the program is a proactive John velopment Corp. and employers may gram, colleges move toward job creation and things, without new taxes and new Carroll sources of revenue really is exactly be in line to have an innovative new could issue bonds growth and will help existing em- tells a what we need at a time like this,” she group that model to provide job training. or incur other debt ployers as well as those the state is said. “We think that community col- Detroit’s Seeing final work in the Legisla- to initially finance trying to recruit. negative leges are great at executing training ture are bills that enable community the training, in an- “Now we can say we’ll guarantee image and that businesses need, so if this al- its fix start colleges to contract with individual Hansen Carroll ticipation of the in- you a trained workforce because lows them to do more, that should re- here. employers and provide job training come-tax payments they would re- we’ll train all your workers for free. ally be a great draw for potential em- Page 22. that would be financed by the in- ceive. We think it’s a great concept,” he Let’s work together: come taxes that employers withhold The initiative is patterned after a said. “We’re funding training by See Training, Page 28 Detroit, Oakland Habitat groups to hold off on a merger — for now. Page 24. Spine-tingling: Chiropractors get House OK for expanded Movie-makers treatments. Page 25.

These organizations appear in this assemble fund week’s Crain’s Detroit Business: Bella Vino ...... 1 Blue Cross Blue Shield ...... 5 Bodman ...... 16 Brooks Kushman ...... 12 to finance films Caponigro Public Relations ...... 4 Capital Mortgage Funding ...... 29 Clark Hill ...... 19 Contractors Steel Co...... 27 Cranbrook Loans ...... 29 in Michigan Detroit Regional Chamber ...... 3 Doctors Hospital of Mich...... 21 DNews ...... 22 BY BILL SHEA Dykema Gossett ...... 14 Exceptional Mold & Engineering . . . 29 CRAIN’S DETROIT BUSINESS Flagstar Bank ...... 29 Global Tooling Alliance ...... 29 A cadre of veteran Hollywood producers Habitat for Humanity ...... 24 is assembling a multimillion dollar fund to Hayes Lemmerz Int’l...... 4 finance low-cost movies qualified to take Herrick Foundation ...... 4 Hongiman Miller ...... 14 advantage of Michigan’s lucrative film in- Impact Steel Group ...... 27 centives. Inforum ...... 28 Genre Film Partners, which has offices in IteroText Translation ...... 1 Los Angeles and Southfield, intends to fi- Jaffe Raitt ...... 15 Keinbaum Opperwahl...... 15 nance or produce seven to 10 movies bud- Lake Carriers’ Assn...... 10 geted between $2.5 million and $10 million Lewis & Munday ...... 18 over the next fear years, MA Engineering ...... 1 McLaren Health Care ...... 21 said Julie Richardson, a MDEQ ...... 10 producer of the 2004 Tom MEDC ...... 3 Cruise thriller “Collater- MGM Grand Detroit ...... 1 Mich. Assn. of Chiropractors ...... 25 al” and the ABC comedy Mich. Assn. of Health Plans ...... 5 series “Nice Girls Don’t Mich. Comm. College Assn...... 3 NATHAN SKID/CRAIN’S DETROIT BUSINESS Get the Corner Office.” Mich. Film Office ...... 29 Mike Landers, executive vice president of Ronart Industries Inc., says his company is doing a fraction of the business it Richardson launched Mich. State Medical Soc...... 25 normally does. His Detroit die-making shop is full of multimillion-dollar machines, like the five-axis rail mill behind him, MichWine ...... 28 the new film group with which is used to cut dies. Miller Canfield ...... 13 partner Jon Karas, an- Nuyen Tomtishen and Aoun ...... 5 other Hollywood vet, Oakland Comm. College ...... 28 Richardson Oakland County Biz Roundtable . . . . 26 and several other film Ridley’s Bakery Café ...... 6 and television insiders have signed on, no- Ronart Industries ...... 3 tably Oscar-nominated Hollywood writer, St. Joseph Mercy Oakland ...... 21 director and producer Frank Darabont Stardock ...... 25 Pressed for cash Sunbelt Business Brokers ...... 3 (“The Shawshank Redemption” and “The Tecumseh Products ...... 4 for the job, opting instead to pay after the jobs were Green Mile”) and producer Chuck Russell Tooles Contracting Group ...... 22 (“The Scorpion King” and “The Mask”). Trott & Trott ...... 18 Toolmaker works with its own completed. Ronart also has about half the work it UM-Dearborn ...... 7 normally does. Among investors is Jay Firestone, a Watson Financial Group ...... 1 Its suppliers started demanding shorter payment prominent movie and television financier, suppliers to survive slow pay terms, putting further strain on the company. dealmaker and producer in the U.S. and “You have to look at it as a startup company — Canada, she said. BY RYAN BEENE what do I do?” Landers said. Richardson is meeting with potential CRAIN’S DETROIT BUSINESS What Landers and the rest of company leadership Michigan investors this week to finalize the did was implement a new business model to share fund, but he isn’t ready to reveal names. BANKRUPTCIES ...... 6 Detroit-based Ronart Industries Inc., a supplier of some of the burden, and some of the profit, with its Ken Higbee, owner of Southfield-based BUSINESS DIARY ...... 23 automotive stamping dies used to make body panels, own suppliers. Sunbelt Business Brokers of Southeast Michi- CALENDAR ...... 23 was backed into a corner early this year — but it Here’s how it works: gan L.L.C., is Genre’s director of operations CAPITOL BRIEFINGS . . . . . 10 found a way out. Ⅲ Ronart goes to its suppliers of castings and oth- for Michigan. A message was left for Hig- CLASSIFIED ADS...... 22 bee seeking comment. “The money systematically dried up at one time,” er parts and asks them to take on some of the job’s KEITH CRAIN ...... 8 said Mike Landers, Ronart executive vice president. The company’s model is cost-efficient, costs, such as extending payment terms from 60 LETTERS ...... 8 Ronart’s bank of 38 years refused to lend money to days to six months with Ronart paying carrying high-return films and cites “Super Bad,” OPINION ...... 8 the company beyond its $5 million credit line, most- costs over the duration, or suppliers paying certain “Garden State,” “Napoleon Dynamite” and ly because of the instability of its automaker cus- bills or giving Ronart cash to fund its operations. “Saw” as examples of movies that were rel- OTHER VOICES ...... 9 tomers. Ⅲ When a job is done, Ronart gets paid by its cus- atively inexpensive to make but did very PEOPLE ...... 24 Automakers stopped making regularly scheduled tomer and shares a portion of the profit with the sup- well at the box office — and in some cases RUMBLINGS...... 30 payment installments, known as progressive pay- pliers that helped. can spawn profitable sequels. WEEK IN REVIEW ...... 30 ments, to Ronart for large die-making jobs that re- “The basic concept is to couple aspiring quire the company to invest $1 million to $2 million See Toolmaker, Page 29 See Films, Page 29 20081208-NEWS--0004-NAT-CCI-CD_-- 12/5/2008 5:41 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS December 8, 2008 It’s Time To Get Back To Business TAKING STOCK Casual days, casual thinking, NEWS ABOUT DETROIT AREA PUBLIC COMPANIES & casual policies are past. It’s time to Get Back To Business. Baron’s can get you and your Tecumseh to issue new Class A office outfitted with Business Appropriate Suits, Sportcoats & sophisticated sportswear at LEGITIMATE WHOLESALE stock after proxy fight falters prices. Improve your firm’s presentation today and get back BY CHAD HALCOM But under the rules of the proxy, per share already owned. CRAIN’S DETROIT BUSINESS all nonparticipating shareholders “That invokes a (clause) in the to business. Baron’s is open to effectively count as “no” votes. company bylaws that if Class B offices of 6 or more. Ann Arbor-based Tecumseh Prod- Risley, former CFO of Monroe- shares move below a (certain por- ucts Co. will triple its outstanding based La-Z-Boy Inc., and Banks, for- tion) of all shares, then all shares Call Mike today at number of shares by year’s end mer president and CEO of ERIM In- will convert to become Class B (248) 539-0525. and merge all of them into a single ternational Inc., are the two stock,” Hess said. voting class of stock for 2009, after remaining members of a past the company management sur- Both the company management board majority that voted to re- and the dissident shareholders vived a close proxy vote to oust move Todd Herrick as CEO of two of its current directors. supported a move to one class of Tecumseh in early 2007. stock, but had previously clashed Shares began climbing Friday The Herrick Foundation propos- for Tecumseh (Nasdaq: TECUA, over the company’s restructuring 0SDIBSE-BLF3Et'BSNJOHUPO)JMMTt.*t al sought to remove and replace strategy and its future. TECUB) after the company an- them with Terence Seikel and The Herrick Foundation had nounced the share issuance plan Zachary Savas. voiced interest in considering a and the failure of a proxy vote led Tecumseh manufactures com- possible sale of Tecumseh. by dissident minority shareholder pressors and related products for After the share conversion, the The Herrick Foundation. refrigeration and cooling systems. The company’s Class A stock Teresa Hess, director of investor three Herrick entities will own closed Friday at $9.28, up 69 cents relations for Tecumseh, noted that roughly 10 percent of all stock. About 2.4 million, or 48 percent ousted former CEO Todd Herrick “Based on the proxy results, we of the 5 million shares of Class B controls about 33 percent of all are encouraged to keep pursuing shares, were cast against the re- Class B shares in the vote through what we feel needs to be done to en- moval of board member David Ris- the foundation, a Herrick family hance board oversight and to en- ley; while 2.2 million, or 44 percent trust and his own personal shares. sure the company is following a of shares, were cast against the re- Hess also said Friday the compa- more appropriate strategic direc- moval of Peter Banks. ny is moving forward with a plan tion,” said Jeff Caponigro, About 91 percent of all share- to issue approximately 36 million spokesman for the Herrick Foun- holder votes were cast, and the new Class A shares by Dec. 31 to its dation. Risley ouster technically obtained existing Class A and Class B share- Chad Halcom: (313) 446-6796, a majority of those votes. holders, at a rate of two new shares [email protected] Hayes Lemmerz treads delisting danger zone

BY RYAN BEENE loss in its third fiscal quarter to “Hayes Lemmerz is a good com- CRAIN’S DETROIT BUSINESS $10.4 million, or 10 cents per share, pany and our restructuring ac- on revenue of $497 million, com- tions have better positioned us to Northville-based Hayes Lemmerz pared with a net loss of $62.7 mil- weather the current economic con- International Inc. (NASDAQ: HAYZ) lion, or 62 cents per share, on rev- ditions,” Diamond said. could soon fall below the mini- enue of $554.9 million in the same Ryan Beene: (313) 446-0315; mum requirements to be listed on period a year ago. [email protected] the stock exchange. Its stock has traded below the minimum $1 per share for 21 consecutive trading days, and if it hits 30 days, Nasdaq rules say a compa- STREET TALK ny is subject to delisting. But it’s in the clear for now be- THIS WEEK’S STOCK TOTALS: 18 GAINERS, 48 LOSERS, 6 UNCHANGED

cause on Oct. 16, Nasdaq suspend- 12/05 11/28 PERCENT ed its minimum listing rule until CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE Jan. 19 because of the number of 1. Pulte Homes Inc. $11.86 $10.65 11.36 companies that have fallen below 2. Masco Corp. 10.18 9.58 6.26 the $1 per share minimum. 3. Taubman Centers Inc. 25.12 23.84 5.37 “Trading under a dollar … is not 4. Meadowbrook Insurance Group 5.91 5.61 5.34 putting pressure on us,” said Mari- 5. Credit Acceptance Corp. 13.70 13.10 4.58 ka Diamond, Hayes Lemmerz di- 6. Agree Realty Corp. 14.14 13.67 3.44 rector of public relations. She Sun Communities Inc. 11.06 10.95 1.00 added that the stock price is not 7. tied to bank debts or covenants. 8. Oxford Bank Corp. 8.50 8.75 -2.86 Year-to-date, the company’s 9. CMS Energy Corp. 9.84 10.16 -3.15 stock value has eroded more than 10. Kelly Services Inc. 11.18 11.65 -4.03 90 percent. CDB’S LOW PERFORMERS 12/05 11/28 PERCENT Shares of Hayes Lemmerz closed CLOSE CLOSE CHANGE at 47 cents, up 9 cents or 23.68 per- 1. Asset Acceptance Capital Corp. $5.58 $6.48 -13.89 cent, on Friday. 2. Energy Conversion Devices Inc. 24.73 27.98 -11.62 But the company has made 3. Penske Auto Group Inc. 6.85 7.58 -9.63 progress in its restructuring, with 4. Somanetics Corp. 15.99 17.54 -8.83 most of its goals already complet- 5. Rofin-Sinar Technologies Inc. 21.72 23.74 -8.51 ed, CEO Curtis Clawson noted in 6. DTE Energy Co. 34.14 37.19 -8.20 an earnings conference call last 7. Syntel Inc. 22.17 24.02 -7.70 Thursday. 8. ITC Holdings Corp. 38.91 42.00 -7.36 Clawson also said in the call that 9. Universal Truckload Services Inc. 16.74 18.04 -7.21 changes in the company’s cost 10. Compuware Corp. 5.92 6.35 -6.77 structure have allowed it to absorb Source: Bloomberg News. From a list of publicly owned companies with headquarters lower sales volumes and essential- in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading ly lower its breakeven point. at less than $5 are not included. The company narrowed its net 20081208-NEWS--0005-NAT-CCI-CD_-- 12/5/2008 5:17 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 5 Blue Cross losses: Bad economy or bad choices?

BY JAY GREENE in place they can use.” decisions...” help Blue Cross collect the 1 per- CRAIN’S DETROIT BUSINESS LOSSES ON POLICIES Blue Cross CFO Mark Bartlett Bartlett said Blue Cross has pro- cent subsidy tax imposed on group said the insurer counts losses on posed and received rate increases policies to employers who self- Blue Cross Blue Shield of Michigan Blue Cross Blue Shield of Michigan Medigap and the past two years, but the ap- fund health insurance coverage contends it will lose $166 million expects to lose $264 million next group conver- proval process took longer than for their workers. year on policies sold to individuals. this year and $264 million in 2009 sion policies as anticipated. The proposed legisla- Under state law, Blue Cross col- by selling health insurance poli- Here’s how the losses break out: part of the indi- tion would reduce the time it takes lects subsidies from its group policies to individuals. vidual market for rate approval. cy customers to reduce the rates The projected losses are the deficit because it The number of nongroup indi- and losses for Medicare supple- biggest reason why Blue Cross ar- is mandated by viduals covered is expected to in- mental and group conversion. gues that the Legislature this week 42% 46% state law to offer crease 22 percent to 144,708 next These subsidies amount to 1.5 per- must begin approving two substi- $112 million $122 million those policies. year from 118,081 this year. Over- cent of group premiums and 1 per- tute bills, House Bills 5282 and 5283, Other Medigap Bartlett also all, Blue Cross projects a 19 percent of nongroup premiums. which would allow it to raise rates individuals said it sells those Bartlett cent increase to 470,000 from For example, Blue Cross collect- more quickly and add consumer policies for less 395,000 in the nongroup, group ed $115 million in subsidy taxes in protections to level the playing field than commercial insurers do, even conversion and Medigap markets. 2007 to reduce its Medicare supple- with competing insurers. taking a financial loss, as part of its “We are losing hundreds of mil- mental premiums, but $25 million Critics contend the projected 11% commitment to provide community lions of dollars in the individual went uncollected, Blue Cross said. losses are misleading because of benefits and expand health care ac- market as more people move into “Many self-funded employers do the nature of the individual mar- cess, making all three insurer-of- it, and the economy will accelerate not pay the subsidy,” Aoun said. ket: Less than half of next year’s $30 million last-resort activities. this rate,” Bartlett said. “The fact that (the) Blues cannot projected losses, about 42 percent, Group conversion But Joe Aoun, an attorney with Murdock said that the losses Blue collect that subsidy from those come from “nongroup” individuals the Ann Arbor-based Nuyen Cross incurs on its Medicare supple- self-funded employers is, again, a Blue Cross covers in its statutorily Tomtishen and Aoun, said Medigap mental policies could be reduced by business issue.” mandated role as insurer of last re- WEB EXTRA should not be viewed as insurer-of- more frequent rate increases. Bartlett said that while collect- sort. Eleven percent of the losses last-resort activity since seniors Blue Cross last received an 18 ing the subsidy is a problem for come from group conversion poli- Hearings planned Tuesday on Blues bills. See www.crainsdetroit.com. who buy it already have Medicare. percent increase in 2007 after re- Blue Cross, there are other rea- cies required by state law to be of- “While (state law) requires Blue questing a 50 percent hike. Prior to sons for the financial losses. fered to individuals dropped by em- Cross to offer Medicare supple- that increase, Blue Cross had not “The losses in the individual commercial insurer loses money on ployer-based group policies. The ment, it does not mandate that increased its Medicare supplemen- market were manageable three the group conversion market, and remaining 46 percent of losses Blue Cross offer the product at un- tal rate since 1999. years ago,” Bartlett said. “The mar- that Blue Cross has chosen to build come from Medicare supplemental reasonably low rates or that Blue Blue Cross’ high-option Medi- ket is growing because small busi- market share in the Medigap mar- insurance policies, also known as Cross lose money,” Aoun said. gap policy, Plan C, costs seniors nesses can’t afford insurance, com- ket by setting premiums below cost. Medigap, that provide coverage for “That result comes from the $107 per month compared with a mercial insurers are getting more “This is not an insurer-of-last- the 20 percent of health care costs Blues’ own choices as to when to price range of $174 to $261 for AARP aggressive in rejecting applicants, resort activity that the state needs Medicare doesn’t cover. raise rates and by how much,” he United Healthcare’s Medigap’s and our costs are increasing faster to help Blue Cross out with,” he Rick Murdock, executive direc- said. “The Blues have chosen to monthly premiums, Bartlett said. than we can get rate increases.” said. “If they want to raise rates to tor of the Michigan Association of raise rates once in 10 years. Their To help cut losses, Aoun said, Jay Greene: (313) 446-0325, cover their costs, there is a process Health Plans in Lansing, said every losses are a result of their business state law could be enhanced to [email protected]

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Page 6 CRAIN’S DETROIT BUSINESS December 8, 2008 Ridley’s hopes expansion will bring back good old days — of 2007

Karl Kornack BY NATHAN SKID ley’s business. the expansion project has increased hopes his CRAIN’S DETROIT BUSINESS The expansion will boost the among staff and customers. expanded bakery bakery to 2,800 square feet and its Some of Ridley’s employees and additional Karl Kornack, owner of Ridley’s seating capacity to 45. In the next have been with the company for seating will help Bakery Café at 4054 Rochester Road four months, Kornack expects to more than 10 years, and all of them make up for a in Troy, is setting a modest goal add five to 10 new employees to his are excited about the increased catering for 2009. 30-person staff. foot traffic they anticipate the ex- shortfall. He’d like his business to return Kornack said he hopes the pro- pansion to bring. to the revenue it had in 2007 — and ject will help him recoup about 10 Ridley’s sales during the first is hoping the recent completion of percent of the losses created by the three quarters of this year were on a $250,000 expansion will help the down economy. pace to match the $2 million gener- 19-year-old bakery and café regain “I am only focusing on things I ated in 2007. But Kornack said the its sales figures from better days. can control,” Kornack said. “Rev- slumping economy finally caught Kornack expects the 1,200- enue is down based on fourth- up with Ridley’s, as its largest square-foot expansion to help quarter sales alone this year, but I catering orders dwindled by al- boost retail sales, offsetting a de- remain cautiously optimistic the most 20 percent from last year. crease in catering sales which expansion will help.” “We lost the frequency we used to make up about 45 percent of Rid- Kornack said buzz surrounding have,” he said. “Auto suppliers like NATHAN SKID/CRAIN’S DETROIT BUSINESS Delphi and Dura would order two to three times per week … now they order only once or twice a month.” Ridley’s offers muffins, scones and tea breads in the morning. It serves fare such as stuffed crois- sants and quiche for lunch. Lunch checks average around $9. Kornack also has implemented cold calling and direct mailing to attract other types of customers, such as pharmaceutical represen- tatives, law firms and accounting firms, to regain some of the lost catering volume. “If I can just get back to those 2007 numbers, then I will be hap- py,” he said. Nathan Skid: (313) 446-1654, ard work pays off. [email protected]

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December 8, 2008 CRAIN’S DETROIT BUSINESS Page 7 Innovation Index slips in 2nd quarter; VC investment up

BY CHAD HALCOM ter 2007. science, research and engineering CRAIN’S DETROIT BUSINESS TRACKING INNOVATION IN MICHIGAN “Venture cap is trending up — which edged up from 4.6 percent well. Aside from that, going for- to 4.8 percent of labor and added The infusion of venture capital ward everything has been strug- 0.3 points to the index. to Michigan companies continued The Innovation Index compiled by the University of Michigan-Dearborn’s gling or nonexistent,” Redding Trademark applications also to climb in what was otherwise a Center for Innovation Research measures six components linked to said. “And most factors going for- were up from 1,347 to 1,359 and slow second quarter, according to economic innovation in Michigan. The goal of the index is to track changes in innovation activity in the Michigan economy. ward into this troubled period are added another 0.3 index points. the latest state Innovation Index looking neutral or bad.” Each index is released quarterly, approximately five months after each Falling in the second quarter from the University of Michigan-Dear- Redding said it was possible the born. quarter ends. Today’s report is for the first quarter of 2008. The index is were new incorporations, down to calibrated to a base value of 100 for the first quarter of 2007. uptick in venture capital could re- The index of innovation-related 17,915 from 18,717 in the quarter flect a past flurry of innovation or and subtracting 0.6 index points; economic activity, compiled quar- entrepreneurial activity that only Innovation Index for 2nd quarter 2008 and SBA loans, which have been in terly by UM- recently matured enough to reach a continuous slide for over a year Dearborn’s Cen- The overall index is 95.0, down from 96.0 in the first quarter and off from the investment phase. 99.7 the same quarter a year earlier. and were at 553, compared with 588 ter for Innovation But David Sowerby, portfolio in the first quarter. Research in its manager and chief market analyst Indicator 2nd quarter ’08 1st quarter ’08 Index points The index’s sole trailing indica- School of Man- Loomis Sayles ▲ at agement, slid to Trademark applications 1,359 1,347 0.3 points Co. L.P. in Bloom- tor, Gross Job Creation, was also 95.0 for the peri- its biggest detractor. Companies

Innovation workers 4.8% of labor 4.6% of labor ▲ 0.3 points field Hills,

od ending June added a total of 208,000 new jobs in ▲ thought most of 30, compared SBA loans 553 588 0.5 points the index indica- first quarter 2008, compared with with 96.0 the 226,000 in fourth quarter 2007, sub- Venture capital $66 million $26 million ▲ 2.0 points tors including

preceding quar- tracting a total of 2.4 points from Redding ▲ venture capital ter and 99.7 in Incorporations 17,915 18,717 0.6 points would soon show the index. the same quarter a year earlier. a downturn The National Bureau for Eco- Lee Redding, associate professor based on more nomic Research reported last of business economics and project

1st quarter ’08 4th quarter ‘07 Index points Sowerby recent trends. week that the U.S. economy has director of the index, said the re- Gross job creation 208,000 226,000▲ 2.4 points “For alternative investments, been in a recession since fourth sults were middling to poor with like private equity and venture quarter 2007. three of the six index indicators Gross job creation enters the index one quarter late due to availability of data. capital … in the data on a national Redding said he expected the trending upward and the other level you are seeing already a defi- venture-capital climb might con- three with slightly larger declines. nite slowdown,” he said. “That just tinue into the third quarter, and But Redding expects the index to All index figures are calibrated dex with 10 transactions totaling appears to be economy-related as alternative investments may hold take a grim turn in subsequent against a base value of 100 for the $66 million. That’s compared to 10 well as credit-related.” some limited appeal to investors quarters, based on early data of first quarter 2007. deals for $26 million in the first Also climbing slightly in the when securities hold little promise economic activity following the Venture-capital investment quarter, seven deals totaling $16 second quarter were innovation of an immediate return. credit crunch and plummeting fi- climbed for the fourth consecutive million before that and just three workers — or the jobs in innova- Chad Halcom: (313) 446-6796, nancial markets this fall. quarter, adding 2 points to the in- deals for $7.4 million in third-quar- tion-related professions such as [email protected]

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Page 8 CRAIN’S DETROIT BUSINESS December 8, 2008 OPINION LETTERS To get state action, Carmakers deserve federal aid Editor: Crain’s Detroit Business No loan for carmakers Why do you never hear those welcomes letters to the editor. Editor: who rant against the need for a All letters will be considered for As a toolmaker in West Michi- bridge loan for American auto publication, provided they are gan for over 20 years, my opinion companies list the good things that stop the cash flow signed and do not defame is that General Motors’ influence the Midwest and auto companies individuals or organizations. in the pass of trade deals such as (and related industries) have done Letters may be edited for length NAFTA, GATT and CAFTA result- ichiganians worried about the domestic auto indus- for the rest of the country? and clarity. ed in the loss of many American try are justifiably miffed at the rude treatment of the The industrial Midwest funded Write: Editor, Crain’s Detroit jobs. (“Region braces for car the building of infrastructure M Detroit 3 CEOs by uninformed and grandstanding Business, 1155 Gratiot Ave., crash,” Nov. 17.) GM all but openly congressional reps. throughout the rest of the country Detroit, MI 48207-2997. told its American suppliers to “Go Yet closer to home, has business gotten any better recep- from the end of World War II E-mail: [email protected] to hell.” through the late 1980s with their I for one feel no loyalty to GM tion in Lansing? taxes, and they never get credit for Despite lobbying and pleas over the last year, the governor teresting number to know — and I and would be sorely disappointed it. Just as the Marshall Plan has to see American taxpayers have to and Legislature have not addressed key issues, such as the been ignored by Europeans for wonder if someone is working on it so the management teams at keep them afloat. Michigan Business Tax surcharge or business-backed reforms decades, the industrial Midwest Let Mexico and China do it. Ford, GM and Chrysler can pre- that could cut as much as $800 million in spending. and its early contributions are be- John Raterink ing ignored by the rest of the coun- sent those numbers to Congress. Meanwhile, the estimated state budget deficit is climbing, Caledonia try now that we are in trouble and This is not a bailout, and I’m and there’s no bipartisan drive to cut spending and create in need of help. tired of those who keep saying it is. Nonprofits can get help structural reform. How many trillions of dollars in This is one of the few uses of tax- Editor: Even Gov. Granholm’s pledge to create an executive order taxes have been paid to the federal payer money that would actually As our community’s economy to cut state spending is on hold since the summit of governors government from industries relat- result in a profit for taxpayers ... continues in a downward spiral, I in Philadelphia last week. Granholm was quoted as saying, “It ed to the auto companies over the but maybe that’s what bothers know the nonprofit community ap- decades and redistributed to poor- preciates the attention received in would be foolish to put forth drastic cuts when we know relief some politicians the most. er parts of the country over the Jeffrey Scott is on the way” in the form of an Obama public infrastructure past 50 years? That would be an in- Troy See Letters, Page 9 stimulus package. That kind of out-of-touch statement doesn’t inspire confidence for the tough decisions that must be made in Lansing. So what can business do? It can turn off the financial tap. Leaders of the top business- related political action committee in the state should convene, TALK ON THE WEBEB agree on a short list of reforms, and let the governor, legisla- From www.crainsdetroit.com tive and political party leadership know the contributions will stop in 2009 until the elected leadership actually leads. typical minor’s indulgence. RE: Cindy Goodaker’s blog on HB 6644: Reader responses to stories and If for-profit companies are downsizing to fight for survival, Alex Andrawes What a joke. While the state blogs that appeared on Crain’s personalwine.com it is simply outrageous that state government and public em- “burns,” the Legislature deals with Web site. Comments may be ployee unions aren’t doing the same. Turn off the cash, and banning wine imports. Where are edited for length and clarity. let’s see if business agendas can get a little more traction. their priorities? RE: Mary Kramer’s Nov. 21 blog: Richard Aginian Why would U.S. Rep. Carolyn Birmingham compete and to protect an outdated system that most every other state Cheeks Kilpatrick care who the head of the Energy and Commerce com- Tell us who’s lending a hand in the country has abandoned. The state should enact legisla- mittee is? She has a job and retire- James Lavender It’s refreshing to see individual players step up to try and tion nearly identical to that which, ment for life. Managing member make a difference in the economic storm engulfing Michigan. in 2005, allowed out-of-state winer- Mike C. E-Wine Junkies L.L.C. Altair Engineering Inc. in Troy is offering free technology ies to ship their products into Michigan. The state could easily cre- training courses and licenses for displaced engineers who ate a permit that out-of-state retailers How many minors can afford to want to be more attractive. would have to pay for annually that buy wine that can cost $90 a bottle RE: Mary Kramer’s Dec. 3 blog: The Detroit Regional Chamber launched a program to gives them the right to ship wine or more? Instead of bullying small It is a great time to buy a car if leverage local contacts outside the state of Michigan, a kind of directly to Michigan consumers. retailers from shipping into Michi- you’re sure you will have a job next “friends and family plan,” to lobby congressional reps from Tom Wark gan by enforcing legislation that is month. Executive director, Specialty Wine other states. unconstitutional, why not tax every Tier-one employee Retailers Association direct wine shipment into Michigan so More examples are reported on Page 1. It’s all-hands-on- the state can collect revenues? Re- It is a great time to buy a car if deck time, folks, and the coming months — with or without This bill was not drafted to pro- tailers do not ship wines that retail you’re a Detroit 3 employee or relat- bridge loans — won’t be easy. If you have an idea or know of a tect those who are not of the legal for under $25 because it’s not cost- ed to one. Why hasn’t the media asked company or organization doing something to make a differ- age necessary to purchase wine, as effective and unrealistic with ship- why the Detroit 3 has been focusing ence, send it to [email protected]. We’ll add it to the growing some have stated. It is a bill to protect ping fees alone, therefore com- their advertising to their employees? online list. distributors that refuse to change and pletely out of reach from the Anonymous

KEITH CRAIN: The mayor has a great opportunity

Whether most people realize it state are facing difficult balance a budget with on his actions over the next few tion of a new president. This politi- or not, the city of Detroit is in the times. The federal gov- less revenue and more weeks. He will be judged, perhaps cal race will be lost in the noise midst of a very important election. ernment has finally ad- needs than in the past. unfairly, on the next 60 days in of- surrounding what happens in the Granted, it’s one of four held next mitted our country has The cuts that must be fice. This is always the advantage next six weeks. year, and all four are part of the been in recession for al- made will be painful. of the incumbent. But there are In addition, we are going to have most a year. In our process of electing a mayor for the But as this all goes plenty of risks involved with this the North American International city of Detroit. state, it’s been going on on, and the campaign opportunity. Auto Show at Cobo Center, with all Sadly, only a handful of folks are longer. for mayor heats up, it Meanwhile, the other candi- its publicity and activities. going to participate in these elec- Our acting mayor will be the assets and tions. Probably the final general will have to face very abilities of the current dates will have a very tough time It’s going to be tough to get any election in 2009 will get the most difficult challenges in mayor on display. trying to get any recognition at a sort of media attention or whip up voters, but I would be surprised if the weeks and months None of the other can- time there is little interest in the interest among an electorate that even that election has a high voter ahead. With the help didates will have that mayoral campaign. The attention at best isn’t going to be very inter- turnout. and support of the De- opportunity. Ken Cock- in coming weeks will focus on the ested. Now there will be lots of at- Meanwhile, Detroit and our troit City Council, the city must rel Jr. will succeed or fail based auto companies and the inaugura- tention directed to other arenas. 20081208-NEWS--0009-NAT-CCI-CD_-- 12/4/2008 3:16 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: State must snare federal transit funds

“A thought is an idea in Woodward Avenue corri- We’ve missed our chances to maxi- ate far more private-sector invest- These bills would let residents vote transit,” Greek philoso- dor in Detroit. mize transportation dollars in the ments than highway projects. Other on measures directly affecting pher Pythagoras wrote. Significant transit in- past when Michigan didn’t put up states report a return of more than them. It might enable local public Transit has many in Michi- vestment is a solid econom- the “match” money needed to cap- $6 in private investment for each $1 transportation operators to main- gan thinking that it’s the ic stimulus Michigan des- ture federal expenditures autho- spent for rail transit. tain services while at the same time vehicle to future prosperi- perately needs. And today rized by Congress. To come up with the state allowing the expansion of Michi- ty. But Michigan will miss — with sensible state ac- The opportunity and urgency is match, we need more transporta- gan’s public transit system. this train if we don’t cap- tions — we can have two huge as the new administration tion funding options. These “local options” would put ture federal transportation big bites of the federal tran- rolls out proposals with billions of The state Transportation Fund- Michigan in a better position to money — and to do this we sit apple. dollars in new infrastructure in- ing Task Force recently recom- come up with the local match re- are going to have to invest Fischer If Gov. Granholm and vestments, and the federal trans- mended that the state triple its quired to capture federal trans- Michigan resources. the Legislature act quickly, we can portation funding bill is up for reau- public transportation investments portation money. We’ve donated We have too many transit oppor- take advantage of new funding op- thorization and revision in 2009. and double funding for roads. too much of our hard-earned dollars tunities and too few Michigan tax portunities in the federal economic The winners will be the states Also, the House must pass “local to other states already. Urge your dollars authorized to capture them. stimulus package now emerging. best prepared to capture dollars options” bills that would allow state legislators to get on board. There are plans for new projects in We can also pick up massive designated for public transporta- counties to decide whether to raise Tim Fischer is deputy policy di- Grand Rapids and Ann Arbor, and amounts of federal dollars for tran- tion projects, projects that have additional revenue for transporta- rector with the Michigan Environ- two competing rail concepts on the sit in the next transportation bill. demonstrated their ability to gener- tion projects at the county level. mental Council.

LETTERS CONTINUED ■ From Page 8 this week’s Crain’s edition (“Fo- cus: Estate Planning/Philan- thropy,” Nov. 10). The negative impact on corporations and businesses is the focal point featured in the mainstream news, the impact on the nonprofit THE LAW community that is asked to do more with less tends to be unno- ticed. I know firsthand that the work of nonprofits is the thread that holds our society together. The nonprofits are the safety nets for our citizens, and it must be real- ized that they are stressed. I think it only appropriate that my nonprofit extend a helping hand to all nonprofits in our area by offering our new SMART program, a collaboration of agencies that saw the economic downturn in funding for these nonprofit agencies and decided to do something about it. It is our mission to come together to promote efficiencies within the nonprofit community by working together. We think by strength- ening and encouraging our nonprofit community to work together by combining programs, sharing administrative responsibility or even merging — stability will pre- Clark Hill PLC attorneys can comprehend and address vail and renew our community the complex legal issues faced by our clients. That’s safety nets. a given. By also understanding the business, ﬁnancial Nonprofits can learn more at www.beSMARTdetroit.com. and operational challenges they face, we can offer Thank you for doing your part real-world solutions that improve performance and for the nonprofit community by bottom-lines. recognizing our industry. Deanna McGraw President We Understand Your Challenges Detroit Executive Service Corps Southfield We Offer You Solutions Thanking a doctor We Share Your Passion Editor: Count on More. I’d like to take a moment to note the passing of Adrian Kantrowitz, a pioneering inventor and heart surgeon noted in the Nov. 24 issue. I didn’t know Dr. Kantrowitz personally. But as a heart surgeon in the ’70s with what was then Sinai Hospital, he saved my mother’s life by removing a rare tumor that was blocking her heart valve. She made a full recovery. In these days of insurance squabbles, HMOs and malpractice, 800.949.3124 | www.clarkhill.com medicine can be a less than friend- ly profession. But it remains a very high calling. David Barkholz Reporter, Automotive News Detroit 20081208-NEWS--0010-NAT-CCI-CD_-- 12/4/2008 5:30 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS December 8, 2008 DEQ delays ballast water treatment rules for now

LANSING — Rough discharge permit meets species. But that is not considered waters are calming a bit state water quality stan- in … what we’re going to be sub- over concerns that state Capitol dards, provided Michi- To put the same requirement on lakers mitting to the EPA,” McCann said. environmental regula- Briefings gan stipulations affect- “ “It does not include the require- tors would require Great ing discharges are is a business killer. ment for the lakers to install any Lakes shippers to treat included in that permit. ” technology to treat ballast water.” ballast water to eliminate Business and ship- Jim Weakley, Lake Carriers’ Association Under 2005 state law, all ocean- harmful aquatic in- ping interests feared going vessels have to apply for a vaders. that the DEQ’s certifica- crease the cost of shipping goods, killer.” DEQ permit before they can use The issue flared up ear- tion would, among other said Sarah Hubbard, vice presi- But Robert McCann, public in- Michigan ports. The permit signi- lier this year and contin- things, subject vessels dent of government relations at formation officer at the DEQ, said fies the vessels will not discharge ued to rumble as the operating solely in the the Detroit Regional Chamber. that no such requirement is at ballast water, or, if they plan to Michigan Department of En- Amy Lane Great Lakes to ballast Said Jim Weakley, president of hand. discharge, that they will use one of vironmental Quality ap- treatment requirements the Rocky River, Ohio-based Lake “There was at one point some four approved systems to treat the proached a deadline last Friday to faced by oceangoing vessels — re- Carriers’ Association, in a letter to a discussion about whether lakers water to eliminate foreign in- certify that an upcoming U.S. Envi- quirements that would unneces- DEQ official: “To put the same re- would need to be included in that, vaders like zebra mussels or round ronmental Protection Agency vessel sarily harm lake carriers and in- quirement on lakers is a business to prevent the spread of aquatic gobies that have hurt native species in the Great Lakes and caused economic and environmental damage. The Lake Carriers’ Association says the volumes of water that lakers take on as ballast, and the rates at which those ships discharge water, are far higher than those of oceangoing vessels and there are no available treatment systems that can accommodate lakers. Even though such treatment won’t be currently required, the issue isn’t dead. As of late last week, it appeared likely that the DEQ, in its submis- sion to the EPA, would reserve the right to reopen the issue in the future if the DEQ director deter- mines that such ballast water treatment systems are necessary, available and cost-effective for lakers. McCann said that if the DEQ does return to the issue, there would be public hearing and public comment period. He said concerns have been raised “that even lakers could contribute to the spread of invasives,” by visiting a non-Michigan Great Lakes port where an oceangoing vessel had been and discharged ballast, and then traveling to a port in Michigan or another state. Speaking with Crain’s, Weakley said that the first line of defense in the problem of spread is to stop the introduction of invasive species. Beyond that, the DEQ needs to take a risk-based approach, look at capabilities and engineering con- straints, and weigh costs versus benefits, he said. Comings & goings ■ Bill Schuette, Michigan Court of Appeals judge, is becoming senior counsel in the Lansing office of law firm Warner Norcross & Judd L.L.P., effective Jan. 1. ■ Kelly Keenan, former legal counsel to Gov. Jennifer Granholm, has been appointed by Granholm to serve on the Michigan Civil Service Commission. ■ Gary Pollard, former chief of staff to Sen. Irma Clark-Coleman, D-Detroit, has been named chief of staff to Sen. Martha Scott, D-High- land Park. He replaces Dawn Pline, who has become director of the office of legislative and liaison services in the Michigan Department of Human Services. ■ Greg Bird, former press secretary to House Speaker Andy Dil- lon, D-Redford Township, has become director of state relations for Wayne State University. Amy Lane: (517) 371-5355, [email protected] 20081208-NEWS--0011-NAT-CCI-CD_-- 12/4/2008 5:05 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 11

A CONVERSATION WITH Fewer test-takers pass state bar exam Michigan reported a slight dip in the number of people who passed the state bar exam this year. Out of 1,308 test-takers, 915, or 70%, passed. Though those figures Julie do not yet reflect appeals, they represent a decline from Savarino, 1,248 taking the 2007 exam and 950, or 76%, passing. Business Development law Inc.

Reporter Robert Ankeny spoke with Ann Arbor-based Julie Savarino, a 22-year veteran consultant and coach of client and business development for law firms and other professionals across the country, about the cautions for lawyers and law firms during rocky economic times. Mark Cantor Ira Jaffe What’s most critical for law firms Brooks Kushman Jaffe, Raitt, Heuer in these uncertain times? Job one Page 12 & Weiss for all firms is to have your house Page 15 in order, secure key client relationships. Even executives whose companies go through Chapter 11 or Chapter 7 bankruptcies will move on to do something else, so attorneys should follow where they go. Overall, corporate work is down but litigation is up, employment and labor actions are very hot, with the reductions in force. And fighting corporate governance Jessica Cooper F. Thomas Lewand issues: Who should get paid what Oakland County Bodman L.L.P. and who’s to blame. prosecutor Page 16 Page 12 Firms should be conservative with cash and bonuses now, and get their business models down, lining up work in process for 2009-2010. What about expanding to other cities and states? Having new offices is all fine and great, but a geographic presence is not as important as it once was, certainly not the be-all and end-all Tom Cranmer David Baker Lewis as a strategy. It assumes the Miller Canfield Lewis & Munday lawyers in the new office know Page 13 Page 18 how to develop business, where perhaps only 3 percent to 5 percent really know how to go about it. The problem is that Crain’s picks 12 who made some plant a seed, throw a flag up and hope for the best. You have to be very strategic news, grew their firms — and about expanding the scope of practice geographically. sent a mayor to jail Today, some lawyers and other professionals are doing work all over the world, and never, or Jim Feeney here are lots of Many have a far-reaching David Trott rarely, meet the clients. I know of Dykema Gossett Trott & Trott a law firm in middle Tennessee Page 14 lawyers. Then there impact on the business Page 18 that does immigration law for employers all over the country, at T are the Power community. $210 an hour. Lawyers. These are the In the selection process What about adding non-lawyer services, such as lobbying? That’s rainmakers, the best-in- for this report, reporters another strategy to maintain work- in-progress, called augmenting or class legal pros winning and editors focused on who affiliated services, tangential to cases, serving as legal are leading the charge on traditional lawyer work. It’s very smart. (Washington,) D.C. law talent for corporate clients current or recent cases of firms have been doing it for years. Any predictions? As with other Herschel Fink or shaping corporate or significance, shaping Reginald Turner industries, the question is how Honigman Miller Clark Hill many will be left standing. There Page 14 government strategy. regional issues or growing Page 19 will probably be more consolidation among the top 20 Crain’s has evaluated the their firm’s business in Detroit firms in the next few years. best of the best and selected important new ways. If you know someone interesting 12 to recognize in this We also included two in the city of Detroit, Wayne County year’s report. It was a county prosecutors who government or law Bob Ankeny should difficult process; Detroit have made news and interview, call (313) 446-0404 or has a large number of earned respect from peers. write bankeny@ crain.com Elizabeth Hardy talented attorneys Their profiles begin on Kym Worthy Kienbaum, Wayne County Opperwall, Hardy respected by their peers Page 12. prosecutor & Pelton Page 20 Page 15 locally and nationally. 20081208-NEWS--0012,0013-NAT-CCI-CD_-- 12/4/2008 4:04 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS December 8, 2008

FOCUS:LAW Mark Cantor Jessica Cooper President Oakland County prosecutor Brooks Kushman P.C. On Jan. 1, Jessica Cooper be- fit of the county.” Southfield comes Oakland County’s first fe- Currently president of Jessica R. male prosecutor and its first De- Cooper P.C. and sharing space in After Mark Cantor was named president of the in- needs to be done attracting clients. And although mocrat in that office in 36 years. Bingham Farms with commercial tellectual property firm Brooks Kushman P.C., he took large judgments get the most press, the patent writ- She won the November election litigation firm Thav, Gross, Steinway the time to canvass staff attorneys for their vision ers are the ones who help make patent prosecution by 62,000 votes, more than a 10 per- & Bennett P.C., Cooper has assem- for the firm before forging ahead with a long-term possible. cent margin, in a bitterly contest- bled a transition team to help her plan. One key to the firm’s success is to continue expanded election against Republican address changes when she takes Cantor, 54, was appointed to the position last year ing the client base beyond the automotive industry, State Rep. David Law, R-Com- office. They are retired Assistant after former President Ernie Brooks died in a car Cantor said. He said many of the younger attorneys merce Township. U.S. Attorney Alan Gershel, Alan crash in Farmington Hills in Au- are interested in working with biomedical, biome- “I think the election results Harnisch of Bloomfield Hills-based gust 2007. Brooks, Cantor and chanical and software companies, and the law firm is showed that Oakland voters were Strobl & Sharp three other attorneys founded the seeking those clients. Since a lot of these clients aren’t willing to consider change on P.C., and Wayne firm 25 years ago. based locally, Cantor said he saw an opportunity to every level of the (election ballot), County Assis- Since his appointment, Cantor expand in a market where he could woo potential from top to bottom,” she said. “The tant Prosecutor has led the firm to grow from 53 to clients on lower fees and a quality record of service. county went with (President-elect Nancy Diehl. 71 professional employees, boost- Cantor opened the firm’s Los Angeles office Sept. 1. Barack) Obama and also backed Cooper and ing total employment to 150, “We’ve been trying to get work out there for the John Kerry and Al Gore. It shows a Gorcyca both opened the firm’s first branch of- last several years,” Cantor said. “We’ve been suc- shift toward being a two-party said the office fice in Los Angeles and created a cessful, but they (clients) liked to have ‘boots on the county that looks at issues.” has completed chief diversity officer position to Cantor ground.’ ” Cooper’s transition into office some non-per- bring awareness of race, gender Cantor said another reason why the firm has been will begin with a tough job: per- Cooper sonnel trim- and similar issues in the processes of recruiting em- successful is that it has paid more attention to issues sonnel cuts. ming, but any ployees and clients. of diversity. It named Phyllis Golden Morey chief di- Cooper, 62, inherits from cur- decisions on cutting staff will be Cantor said the firm has been able to succeed by versity officer in April. It was an important part of rent Prosecutor David Gorcyca an Cooper’s to make. incorporating a five- to 10-year plan and motivated recognizing the need to have more employees of dif- office with 104 attorneys, 60 sup- “I knew my successor might employees. ferent backgrounds, Cantor said. port staff and a $550,000 deficit to want to make different changes “One thing is you have to lead with a direction,” “It’s the kind of thing more firms should be doing,” reconcile in its 2009 budget. than from I would want to do,” he Cantor said. “Then you try to build a consensus Cantor said. “It’s something we’ll need to re- said. “There are policy decisions around what you propose. The trick to it is not to be Currently, 26 percent of Brooks Kushman’s legal solve almost immediately,” she involved, like how much to focus deaf to people’s ideas.” staff is female, the highest percentage in the law said. “I can’t promise a certain on drugs, or auto theft, that I Even though Cantor said large judgments — such firm’s history. number, and I don’t know yet thought … Cooper should be able as the $140 million awarded to Commerce Township- In the next five to 10 years, Cantor expects the where the changes will be — only to decide rather than have to come based z4 Technologies in 2007 against Microsoft Corp. firm to hire more professional staff and potentially that the process of (balancing the in and change whatever (I do).” and Autodesk Inc. over a patent dispute — have open an East Coast office to garner clients. budget) will be focused on preserv- Cooper was elected to the Court raised the firm’s profile in the last year, more work — Bowdeya Tweh ing law enforcement and the bene- of Appeals in 2000 and again in

Saluting all of the Outstanding Lawyers in Michigan

Comprehensive Loss Mitigation, Bankruptcy, Litigation and Related Services for the Real Estate Finance Industry 20081208-NEWS--0012,0013-NAT-CCI-CD_-- 12/4/2008 5:18 PM Page 2

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 13

FOCUS:LAW Tom Cranmer Principal Miller, Canfield, Paddock 2006 before resigning that post in and Stone P.L.C. July 2007 and opening a private Troy Congratulations Ira practice in Bingham Farms, where she focuses on labor law and court- After more than 30 years as a appointed mediation to resolve leading white-collar criminal civil disputes outside court. defense lawyer, Tom Cranmer She was an Oakland County Circuit still has an enviable trial calen- Court judge from 1986 to 2000, dar. As Jaffe Raitt Heuer & Weiss where she made headlines in the His representation during 1999 imprisonment of so-called sui- the past 14 months has included celebrates its 40th Anniversary, cide doctor Jack Kevorkian and winning ac- the 2000 murder trial of attorney quittal for we salute you for your clear Michael Fletcher. U.S. State De- Cooper also served as adjunct partment revision, outstanding leadership, law professor at the University of gional secu- passion for service and Michigan in 2004-05 and on the fac- rity officer ulty of Emory Law School in Atlanta, Harry Ray- commitment to your community. teaching trial techniques. mond Smith She said she will miss the col- on charges leagues who helped her juggle her that he con- spired with mediation work this year at the Cranmer Assistant Thav Gross offices, a place she ap- U.S. Attorney Rick Convertino preciated for its “multiple confer- to present false testimony at ence rooms” to separate the liti- the trial of two men accused of gants. being a terrorist sleeper cell in “I usually wear fairly high heels Detroit shortly after the Sept. because I’m short, but because of 11, 2001, terrorist attacks. the work I did we often had parties Federal charges were 27777 FRANKLIN ROAD, SUITE 2500 who could not be in the same room brought against Smith and SOUTHFIELD, MICHIGAN 48034 together. So I had to do a lot of run- Convertino after the convic- P: 248.351.3000 F: 248.351.3082 ning back and forth in these things, tions of the alleged terrorists between those spread-out rooms in were overturned, but both fed- www.jaffelaw.com a big office,” she said. “The people eral officials were acquitted. here were good for laughing with Cranmer, 57, also played a me about that and being supportive, significant behind-the-scenes and I’ll miss them.” SOUTHFIEL ÊÊUÊÊDETROI/ÊÊUÊÊANN ARBO,ÊÊUÊÊ ,1- Ê — Chad Halcom See Cranmer, Page 14

13,000 graduates tradition worldwide

35years success

Cooley Law School celebrates its 35th Anniversary with a tribute to its over 13,000 graduates across the nation and worldwide. Cooley graduates, including a former governor,members of the United States Congress, numerous state legislators, judges, educators, prosecutors, and thousands of practitioners are making their marks on society in ways both great and small. Cooley is dedicated to teaching students the knowledge, skills, and ethics needed to be respected lawyers and outstanding citizens. Students can receive their Juris Doctor degrees at any of Cooley’s three campuses across Michigan in Lansing, Grand Rapids, and Auburn Hills. Cooley also offers Joint Degree and Master of Laws programs with enrollment three times a year; in January, May, and September. For more information about Cooley Law School, visit cooley.edu wledge. skills. ethics. Thomas M. Cooley Law School is committed to a fair and objective admissions policy. Subject to space limitations, Cooley offers the opportunity for legal education to all qualified applicants. Cooley abides by all federal and state cooley.edu laws against discrimination. In addition, Cooley abides by American Bar Association Standard 211(a), which provides that “a law school shall foster and maintain equality of opportunity in legal education, including employment of

kno faculty and staff, without discrimination or segregation on the basis of race, color,religion, national origin, gender,sexual orientation, age or disability.” 20081208-NEWS--0014,0015-NAT-CCI-CD_-- 12/4/2008 5:21 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS December 8, 2008

FOCUS:LAW Jim Feeney Cranmer: Handles high-profile cases Member Dykema Gossett P.L.L.C. ■ From Page 13 Bloomfield Hills role in one of the area’s highest-pro- trict Court in Detroit of Dr. Chi- Jim Feeney is a top national liti- in compensatory damages demand- file federal court trials of 2008. lakamarri Ramesh on immigra- gator with a roster of recent high- ed by plaintiffs. Feeney said his suc- Working with famed defense lawyer There has been no tion fraud charges. The West profile cases on his résumé. He is cess in automotive liability cases Jerry Spence, Cranmer drafted mo- “ Bloomfield Township psychia- known as a “go-to” attorney for au- kept leading to more similar work. tions in the case in which nationally indictment yet of my trist is accused of signing false tomakers, “You tend to do the work that prominent Detroit lawyer Geoffrey medical waiver forms for almost equipment man- clients ask you to do, and begin- Fieger was acquitted of campaign client. ... That’s the 500 citizenship applicants to al- ufacturers and ning in the mid-1990s I began try- contribution violations. best outcome, low them to obtain U.S. citizen- suppliers. ing cases around the country for Also this fall, he successfully defen- ship without passing the English Feeney won a Ford, General Motors and ded Oakland University’s Darrin Han- always. proficiency part of the natural- series of recent Chrysler,” Feeney said. na, assistant professor of engineer- ” ization exam. The case is headed cases defending Feeney also successfully defended ing, against charges of violating for trial next spring. Ford Motor Co. Kia Motors in a June 2007 class action federal embargoes over shipping mil- Tom Cranmer, Miller, Canfield, Also pending for Cranmer is Paddock & Stone P.L.C. and a Ford deal- suit involving the charge of defec- lions of dollars worth of telecommu- his defense of Delphi Corp. ex- ership. tive seatbelts in more than 13,000 ve- nications and global positioning Treasurer and Vice President He won a de- hicles. And he won a defense verdict Feeney equipment to Iraq. Cranmer convinced a federal jury John Blahnik in a civil trial next fall. The U.S. Securi- fense verdict in on behalf of General Motors Corp. in that Hanna was a computer genius and busy universities and Exchange Commission is charging former Del- the $800 million St. Clair County v. cases filed in multiple states involv- ty professor, but not deeply involved with a family ex- phi officers and directors with misstating financial Ford Motor Co. case in 2004, in ing the sidesaddle gas tank design of port business run by his sister, who was convicted. information to mislead investors. which the jury found that the Ford GM’s C/K pickup. Cranmer has headed the criminal defense prac- And, he represents a former officer of now-de- Crown Victoria Interceptor police National media, from Court TV to tice at Miller Canfield since joining the firm in No- funct Collins & Aikman Corp. in the federal investiga- vehicle used by law enforcement NBC’s “The Today Show” and vember 2004, after his previous firm, Miro, Weiner & tion that led to the indictment of the firm’s former agencies across the United States “Good Morning America” on ABC, Kramer P.C., was dissolved. CEO, David Stockman, and three other C&A offi- was not unreasonably dangerous. often call upon Feeney to provide During 2005-2006, Cranmer was president of the cials, who are to stand trial on criminal charges in That decision essentially allowed commentary on legal decisions, State Bar of Michigan and serves on the board of the federal court in Manhattan in May. Ford to continue making the vehi- trends and case strategy. Feeney is State Bar Foundation, its charitable arm. He’s a mem- “There has been no indictment yet of my client, cles, which remain the most com- a member of the American College of ber of the bar media and law committee and chairs and we’re hoping there is none,” Cranmer said. mon law enforcement sedan used Trial Lawyers. various Federal Bar Association activities in Detroit. “That’s the best outcome, always.” by agencies nationally. Feeney also has represented On his trial docket soon is the defense in U.S. Dis- — Robert Ankeny Feeney, 61, also won the 2005 multinational corporations from a Newton v. Ford case, affirmed this wide range of other industries, in- year by the Missouri Court of Ap- cluding pharmaceutical firms, peals, that absolved the automaker medical device manufacturers and of any responsibilities for the media companies. In all, he has death of an individual after a road- been a part of more than 1,500 cas- side accident. es, nearly 70 of which have gone to Also this year, Feeney defended verdict. Ohio dealership Findlay Ford in a Feeney attributes much of his $300 million lawsuit. That was the success to persuading jurors to seri- last remaining case related to the ously think about a case — beyond limousine accident that seriously where public sentiment may lie. injured former National Hockey “If you get jurors to decide a League All-Star and Detroit Red case based on their own common Wings defenseman Vladimir Kon- sense, you will do well,” Feeney stantinov and team masseur said. Sergei Mnatsakanov after the “There’s a difference between team’s 1997 Stanley Cup win. perception and reality, and jurors After a four-week trial, a Detroit generally do a very good job of not federal court this September re- being affected by the media and turned with a 6-1 verdict for Find- other outside influences.” lay Ford, denying the $300 million — Mike Scott

Herschel Fink Partner Honigman Miller Schwartz and Cohn L.L.P. Detroit Herschel Fink has blended two Free Press obtained would be explo- careers and two passions: journal- sive,” he said. “This broke about ism and law. the same time as Eliot Spitzer, so I His representation of the Detroit thought Kilpatrick would have had Free Press in the newspaper’s quest the good sense to resign and spare COMING together IS A BEGINNING; to get information about the settle- the city the anguish it went “ ment of a lawsuit through. When he dug in his heels, I KEEPING IS PROGRESS; between Detroit wondered if he would be able to together and fired police weather the storm.” WORKING IS SUCCESS. officers — a dra- Prior to his law career, Fink together ma that eventu- worked in journalism, starting – Henry ”Ford ally culminated with a $100-a-week gig in 1963 as a in Mayor reporter at The Flint Journal. Kwame Kil- After 10 years in newspapers, in- patrick’s resig- cluding seven as an editor at The nation and jail- Detroit News, Fink earned his law ing this year — Fink degree with designs on becoming a We’re proud to again lead Michigan in the number may be his career highlight thus reporter specializing in courts, or far. a media law practice. of attorneys – 105 in all – recognized by the country’s “It was unique,” he said. “On the “I decided I might like to practice, top legal referral guides: The Best Lawyers in America, one hand, it was gratifying being and my dream was to combine jour- Chambers USA and Super Lawyers. able to accomplish something, but nalism and the law,” he said. on the other hand it was saddening As a partner at Detroit’s Honig- Let’s work together, Detroit. for someone that’s grown up and man Miller Schwartz and Cohn L.L.P., worked his whole life in Detroit.” he leads the firm’s prominent me- Our home and headquarters since 1852. The eventual scale of the Kil- dia and entertainment practice. patrick situation surprised Fink, Besides newspapers, other no- but only to a degree. MICHIGAN s ILLINOIS s MASSACHUSETTS s NEW YORK s FLORIDA s CANADA s POLAND s CHINA table clients have included horror “I did think this information the author Stephen King, singer 20081208-NEWS--0014,0015-NAT-CCI-CD_-- 12/4/2008 4:10 PM Page 2

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 15

FOCUS:LAW

Elizabeth Hardy Founding partner Kienbaum, Opperwall, Hardy & Pelton P.L.C. Birmingham Elizabeth Hardy has won sever- These Michigan Supreme Court al significant Michigan Supreme victories have been crucial to Court decisions that helped re- Hardy’s profile in Michigan and shape legal doctrines in the state nationally, she said. in favor of employers. “This helps lawyers to make This has led to client confidence their name well-known and helps in her precedent-setting track attract cases and larger roles,” record and more high-profile Hardy said. work. Another important side effect of Her successes her success: Clients invest in al- include getting a $50 million ha- lowing Hardy to develop issues rassment-dis- through the appellate process to al- crimination ter the course of law, she said. case dismissed During 2006-2008, Hardy won due to the plain- three other employment-related tiff and her lawsuits in Wayne circuit courts lawyers’ efforts for Ford Motor Co. in which de- to taint the jury Hardy mands totaled more than $16 mil- pool (Maldonado v. Ford Motor Co., lion. She is scheduled to begin tri- 2006). als today and Jan. 20 on two more In another state Supreme Court cases alleging sexual harassment victory, Hardy’s arguments set a and discrimination, which have Michigan precedent on employ- been pending since 1999 and 2001. ment cases about what type of no- A founding partner at Birming- tice employers must be given be- ham labor and employment law fore the company is obligated to firm Kienbaum, Opperwall, Hardy & investigate and remedy alleged ha- Pelton P.L.C., Hardy, 53, also plays rassment. That ruling (Elozovic v. a lead role in continuing negotia- Ford Motor Co., 2005) prompted tions between Wayne State Universi- many employers to launch refresh- ty Medical School and Karmanos er training to supervisors and re- Cancer Institute on their connec- viewed harassment policies and tions and funding relationships. complaint procedures. After 16 years on the WSU board Another Supreme Court case of governors, and chairing the past Hardy won (Gilbert v. Daimler two WSU presidential search com- Chrysler, 2004) set aside a $21 million jury verdict that had risen to mittees, she continues as a mem- $38 million with interest because ber of the WSU Medical School ad- of lawyer misconduct. The high visory board. court also held that compensatory She has served on the high (or emotional distress) damages court’s Model Civil Jury Instruc- must not be used punitively. tions committee for lawyers and An earlier Supreme Court victo- judges since 2005, and was appoint- ry of Hardy’s established a “busi- ed to the State Board of Law Examin- ness judgment” rule that courts ers in 2008 by the Michigan should not second-guess business Supreme Court and Gov. Jennifer decisions that are otherwise ratio- Granholm. nal. — Robert Ankeny

Ira Jaffe Founding partner Jaffe, Raitt, Heuer & Weiss P.C. Southfield MSU College of Law

Michael Jackson, rapper Dr. Dre, Not many lawyers — or any filmmaker Michael Moore and other business folks — would Skills for 21st Century Practice most of the area’s media outlets, celebrate the 40th anniversary often for copyright infringement of their business’s founding by and libel cases. taking on new personal Fink, 67, has much praise for Looking for New Associates, Law Clerks or Externs? Wayne County Prosecutor Kym challenges. Ira Jaffe Worthy (also recognized in this has, the same section on Page 20), calling her MSU College of Law can connect you with excellent candidates. year he MSU COLLEGE OF LAW COURTROOM “tough and honest.” Fink hopes the marks his case also highlights the importance 69th birthday. MSU Law offers a strong required curriculum enhanced by of newspapers, an industry beset by In 2008, specialty programs and experiential learning. Our students declining circulation, advertising Jaffe took obtain hands-on learning opportunities through clinics, a rigorous revenue and layoffs. Jaffe and passed trial practice program, transactional simulation courses, and an “This was a lawsuit that could the Florida extensive externship program. only be waged by a newspaper,” he Bar Association law exam, said. “I’m really concerned. If we known as one of the toughest don’t have viable newspapers, the in the country, which also in- public is going to be deprived of includes a full investigation to en- Get to know an MSU Law student today. formation it needs to govern itself.” sure that the attorney is not a Contact Assistant Dean Elliot Spoon in Career Services at Fink received a Lifetime retiree. 517/432-6830 or [email protected] Achievement Award from the It’s just one example of how Michigan chapter of the Society of Jaffe, known as a business rain- maker and a leader on corpo- Professional Journalists in 2005. rate boards, is willing to try “I can’t imagine anyone having new things. a more interesting practice, and I The rationale for cramming still love what I do,” he said. — Bill Shea See Jaffe, Page 16 20081208-NEWS--0016-NAT-CCI-CD_-- 12/4/2008 4:06 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS December 8, 2008

FOCUS:L:LAW Jaffe: A willingness to take on new personal challenges ■ From Page 15 for six to eight months for the for the Fred A. and Barbara M. Erb employees. exam? Family Foundation. In early 2000, Jaffe had put his “A lot of our very wealthy Jaffe’s firm in October also opened an office Jaffe is one of the largest rain- practice responsibilities on hold clients qualify for Florida resi- makers in the firm, and although when the chief at Redico, the real dence; some want to invest in com- in Jerusalem, where a burgeoning high-tech younger partners now handle estate company that developed the panies, and a few have moved industry is looking to grow joint ventures most firm management issues, the Palace of Auburn Hills and Top of there,” Jaffe said. “Every month law firm kept its brand as simply Troy, Robert Sosnick, died. Jaffe, there’s a litany of high-net-worth “Jaffe” and moved its headquar- Sosnick’s friend of 40 years, took with U.S. companies. over as Redico president for sever- residents who go.” ters from downtown to Southfield al years and continues to serve as Soon, he’ll be able to say “Yes” my, is right, Jaffe said. Last August, Jaffe was named in 2004. its board chairman. when inquisitive Floridian Jaffe’s firm in October also president and CEO of the Fisher The firm’s professionals and Jaffe is on the board of the De- lawyers ask if he’s a member of opened an office in Jerusalem, Group, handling financial affairs of other staff decided to salute the troit Zoological Society and a gover- their state bar. And the firm will where a burgeoning high-tech in- the Max Fisher family. He also ear- firm’s 40th anniversary by donat- nor of the Cranbrook Institute of Sci- announce its Naples, Fla., office dustry is looking to grow joint ven- lier this year handled establish- ing 8,000 hours to community ser- ence. when the timing, and the econo- tures with U.S. companies. ment of a $100 million-plus trust vice, 40 hours for each of the 200 Two other Jaffe activities are work with Wayne State University offshoots called Math Core, which teaches mathematics to Detroit Pub- lic School students, and Beyond Ba- sics, which teaches reading and art appreciation to inner-city students. “It’s unbelievable the results, how students perform after these programs,” Jaffe said. — Robert Ankeny WE KNOW THE LAW F. Thomas Lewand Partner Bodman L.L.P. Detroit If more than 31 years of federal court battling over control and operation of the Detroit Water and Sew- erage Department comes to a con- clusion soon, Thomas Lewand will have played a significant role in bringing regional cooperation to the contentious topic. His efforts on regional water are one of several examples of regional leadership by Lewand, 62, in recent years. He also has worked on health care institution negotiations and has negotiated public-private partnerships between Lewand corporations and municipalities. Lewand was appointed special master by U.S. District Judge John Feikens on water and sewer issues for Southeast Michigan in 2002, working with a voluntary consortium of area municipalities and corporations toward regional solutions to long-range water and sewer problems. Feikens has been virtual water- sewer czar since 1977, when the En- vironmental Protection Agency sued THE RIGHT CHOICE. the city and its water system for pollution violations. By 2000, the judge had decided Companies need a law ﬁrm that understands their business. That’s why they turn to Dykema — that regional cooperation among we know the legal challenges they face and provide solutions to achieve their goals. When it comes to public and private stakeholders in the vast system was needed and knowing the law and delivering results, Dykema is the right choice for high quality representation. drafted top leaders to the consortium. He then appointed Lewand to work with the group for final so- A LAW FIRM UNLIKE ANY OTHER lutions, which now seem within reach, Feikens said last week. This could mean that metro-area offi- California I Illinois I Michigan I Texas I Washington, D.C. www.dykema.com cials would be united in seeking federal funding for major infrastructure repairs from the Obama administration in 2009. Oversight

See Lewand, Page 18 2008 Power Lawyers page.qxp 12/4/2008 3:24 PM Page 1

Fragomen, Del Rey, Bernsen & Loewy PLLC The Victor Firm, PLLC 2301 W. Big Beaver Road, 35801 Mound Road Suite 225 Simon, Galasso & Frantz, PLC Sterling Heights MI 48310 Troy, MI 48084 363 W. Big Beaver Road Phone: 586-274-9600 Phone: 248-649-5404 Troy, MI 48084 FAX: 586-274-9610 Fax: 248-649-5121 Phone: 248-720-0290 www.victorfirm.com [email protected] Fax: 248-720-0293 www.michiganpropertyrights.net www.fragomen.com www.sgfattorneys.com www.michiganrighttofarmact.com Scott F. Cooper Frank R. Simon Cindy Rhodes Victor As Managing Partner of the Troy office of Fragomen, Admitted to practice in Michigan, Illinois, New York Cindy Rhodes Victor is recognized as one of the fore- Del Rey, Bernsen & Loewy, the world’s preeminent im- and Washington D.C. most advocates for protecting the property rights of migration law firm, Scott’s practice is focused in global Frank Simon is a founding member of a boutique law businesses, developers and landowners against immigration and immigration-related compliance for firm where he leads a team of attorneys specializing in wrongful, unconstitutional or unauthorized actions of clients from Fortune 100 companies, prominent univer- representing financial institutions in the areas of com- municipalities, counties and state agencies. As a litiga- sities and national research and cultural institutions to mercial lending, loan documentation/reviews, banking tion attorney for the past 28 years, Victor has handled senior executives, professionals, entrepreneurs, ath- litigation, workouts, foreclosures, bankruptcy, real es- over a hundred trials, hearings and injunctive matters letes, entertainers, and investors. Scott is recognized in tate matters, creditor’s rights, insolvency proceedings, in state and federal trial and appellate courts, and is a the International Who’s Who of Corporate Immigration negotiable instrument law, UCC issues and mortgage member of the bar of the United States Supreme Court. Lawyers, Super Lawyers, Best Lawyers in America, fraud matters. The firm represents over 24 financial in- She is likely best known for representing Hillside Pro- dBusiness, and is AV rated by Martindale-Hubbell. For- stitutions, including Bank of America, Charter One/RBS, ductions, Inc., which operates Freedom Hill Amphithe- mer Chair of the Chicago Bar Association’s Immigration Citizens Bank, Comerica Bank, Flagstar, Fifth Third Bank ater in Macomb County, in its federal lawsuit against and Nationality Law Committee, Scott has led the and Huntington National Bank through its offices in the City of Sterling Heights, which resulted in a $31 Michigan Chapter of the American Immigration Troy, Michigan and Chicago, Illinois. million consent judgment against the City, one of the Lawyers Association and served on its national Board of largest judgments against a municipality on record. Governors. He has chaired immigration law programs Mr. Simon enhanced his commitment financial institu- for the Michigan and Illinois Institutes for Continuing tions by completing a three-year program at the Grad- Victor is the managing member of The Victor Firm, Legal Education and is an Adjunct Professor in the Uni- uate School of Banking at the University of Wisconsin – PLLC. The firm has a specialized law practice, and not versity of Detroit Mercy School of Law’s nationally ac- Madison (“GSB”). His experience at GSB helped him to only represents businesses in lawsuits against munici- claimed Law Firm Program. Scott is admitted to the become a banker’s lawyer. His experience, result-ori- palities and disputes with governmental agencies, but Michigan, Illinois, New York, United States District ented approach, and unwavering aggressiveness have also handles complex commercial and real estate liti- Court and Supreme Court bars. A former Fulbright earned him state wide recognition as a premier credi- gation and intellectual property litigation matters, and Scholar, he is also a recognized author and speaker in tor advocate. provides legal services to clients in the entertainment the field of immigration law. In 2005, Mr. Simon formed a real estate disposition and sports industries. company (Simon Property Disposition, LLC) to service financial institution’s collateral through sales and/or re- ceiverships which has been a great success.

Weltman, Weinberg & Reis Co., L.P.A. 2155 Butterfield Drive Suite 200-S Troy, MI 48084 P (248) 362-6142 F (248) 273-2444 www.weltman.com David Wolfe David Wolfe is an associate in the Detroit office of Weltman, Weinberg & Reis, recognized as the nation’s largest creditor’s rights law firm. His primary focus is consumer and commercial client collateral recovery. He produces successful results through mediation and litigation in state and federal courts. He has defended against claims brought under the FDCPA, Fair Credit Reporting Act, Michigan Collection Practices Act and other state consumer lending regulations. David has also litigated numerous bankruptcy spin-off adversarial proceedings. As a member of the State Bar of Michigan, Mr. Wolfe is admitted to practice law in all Michigan Courts, and is a member of the Oakland County Bar association. He is also a member of the Oregon State Bar, a frequent lec- turer in matters involving creditor’s rights and the Fair Debt Collection Practices Act, and is currently serving a 2-year term on the State Bar of Michigan Representa- tive Assembly. David earned his bachelor’s degree in Economics in 1995 from Wayne State University and graduated from the University of Detroit Mercy School of Law in 1999, where he served as Law Review Title Editor. 20081208-NEWS--0018,0019-NAT-CCI-CD_-- 12/4/2008 4:17 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS December 8, 2008

FOCUS:LAW

David Baker Lewis Lewand: Chairman and CEO Lewis & Munday P.C. Detroit

Solutions The law firm co-founded 36 years ago by David is far from dead in the water,” he said. “In the first Trott & Trott P.C. has had the nar- ■ From Page 16 Baker Lewis has become one of the top bonding law six or seven months, volume was trending to equal row niche of foreclosure work firms in the nation — and has a diverse business or exceed the yearly $400 billion record.” since its inception in 1976. Today, of $270 million in 10 bond-issue base of other corporate services. Industry estimates put deferred public infrastruc- David Trott heads one of the three series for 13 downriver commu- The firm still has a healthy amount of bonding ture needs at between $1 trillion and $2 trillion, largest foreclosure law firms in nities and Wayne County were work despite the national credit Lewis said, with President-elect Barack Obama’s the country, based on business vol- among Lewand’s efforts. crunch, but it also gets more than public works stimulus package expected to address ume and em- Lewand also served as Gov. half its revenue from real estate, a significant portion of that. ployees. Jennifer Granholm’s facilitator civil litigation Beyond the law firm, Lewis is a Being in the in restructuring governance at and other corpo- go-to lawyer on politics and corpo- right practice at Detroit Medical Center, providing rate services. There’s been a rate advice. the right time is Lewis & Mun- $50 million in capital infusion “ He serves on the state’s Strategic helping the bot- day ranked fifth that allowed DMC to return to negative impact, Economic Investment and Commercial- tom line, but profitability. He has since repre- among bond ization Board, which approves loans Trott says the sented DMC in negotiations with firms nationally but the market is far and grants from the 21st Century company has Wayne State University School of in early 2008 and Lewis Jobs Fund. He also was chairman of been growing by Medicine to reach agreement in has been bond from dead in the Gov. Jennifer Granholm’s 2006 re- counsel on deals as complex as the Trott at least 10 per- November 2006 for approximate- election committee. $200 million Westin Book Cadillac water. cent each year ly $75 million in payments. As a director for The Kroger Co. He represents corporations in Detroit restoration, which had ” for the past 20 years. During the and H&R Block Inc., Lewis chairs au- transactions and also has nego- more than 20 funding sources. David Baker Lewis, last five years, the firm has had 20 dit committees for the boards of tiated public-private partner- A sample of this year’s work: co- Lewis & Munday P.C. percent growth each year. both publicly traded companies. ships between corporations and counsel on a $400 million tax rev- Keeping growth steady has been He’s been involved with the Henry municipalities. Among them is enue anticipation bond issue for the District of Co- a matter of responding to demand. Ford Hospital and Henry Ford Health System boards for a deal among Detroit, Wayne lumbia, a $50 million Tennessee state school For example, Trott said, the firm County and the Detroit Lions for authority bond issue and a bond issue for expansion more than 10 years, both chairing the main hospital has been slowing its foreclosure the construction of Ford Field. of the Denver Botanical Gardens. board and as vice chair of the system board, and has work. More and more corporate Lewand serves on the execu- Lewis & Munday, with 23 lawyers, has two-lawyer chaired the hospital board’s audit committee. clients are looking for ways to tive committee of the Michigan offices in Seattle, Wash., Hartford, Conn., Washing- His other board involvement includes serving as modify loans, work out new terms Economic Development Corp., as a ton, D.C., and Lansing. president of the Coleman A. Young Foundation and with borrowers or use a short sale director of the Wayne County Eco- The current credit and liquidity crisis on the fi- serving on the boards of New Detroit Inc. and the U.S. rather than go through the costly nomic Development Corp., and is nancial scene has cut into public bonding business, Justice Department Police Foundation in Washington, foreclosure process. immediate past chair of the Uni- with bond issue volume through November running D.C., which is chaired by ex-Michigan Gov. William The firm’s loss mitigation depart- versity of Detroit Mercy board of 22 percent behind 2007, said Lewis, 64, who expects a Milliken and promotes research and studies on comment, which handles such tasks, trustees, among other roles. turnaround soon. munity policing. has grown from having five profes- — Robert Ankeny “There’s been a negative impact, but the market — Robert Ankeny sionals two years ago to 50 today. 20081208-NEWS--0018,0019-NAT-CCI-CD_-- 12/4/2008 3:39 PM Page 2

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 19

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David Trott Reginald Turner President and managing partner Member Trott & Trott P.C. Clark Hill P.L.C. Farmington Hills Detroit

“If a borrower is saying they building in Farmington Hills and Reginald Turner has expanded Clark Hill’s reach then agreed to settle the case and gave Oram rights can’t save their house but they is the majority owner with partner and helped it successfully navigate complex matters to the entire business estate, which has been man- have money, have a job, our Redico L.L.C. as minority owner for clients — resulting in economic development aged by a receiver. client’s expectation is that we can and manager of the property. success stories and resolution of Turner’s other recent deals included South Univer- tee that opportunity up for them The company now has more longstanding disputes. sity Village at Wayne State University, and the College and help avoid a than 1,000 em- He has parlayed experience in for Creative Studies-Argonaut Building project. foreclosure sale,” ployees national- government at the local, state and Both projects represent significant developments Trott said. “It’s It’s a difficult ly. Trott said he national levels into expansion of that involved major cooperation among private de- the right result all “ measures the Clark Hill’s government and pub- velopers (one from western Michigan), local and business, so you’re firm’s growth not the way around; lic affairs practice. state government, and nonprofits. In both projects, as much by dol- it’s saving losses That’s while continuing his sig- Clark Hill real estate group lawyers worked closely for our client and not always feeling lars but by the nificant practice in labor and em- with Turner and the firm’s other government policy its better for the ability to retain as if you’re ployment law, real estate and com- group professionals to solve the complex deals. community.” employees. Turner mercial litigation. He also worked with Thunder Bay Manufacturing Co. By year’s end, “It’s a difficult improving Clark Hill opened a Grand Rapids office in Janu- to sell its Alpena automotive die plant to ATI Casting Trott estimates, business, so ary 2006, which has expanded from 12 to 22 lawyers the firm will have humanity on a you’re not al- Service. The Allegheny Technologies Inc. company and other professionals. The Lansing and Washing- performed 40,000 ways feeling as if manufactures iron castings for wind energy and oth- ton offices of the firm also have been expanded un- work-outs. day-to-day you’re improving er markets and expects to create 150 jobs. der direction of government affairs director John Trott & Trott humanity on a Turner’s governmental savvy was sharpened basis. Van Fossen, Turner said. has grown its oth- day-to-day ba- when he managed a presidential task force as aide to ” Turner, 48, recently won a significant Michigan er business lines sis,” Trott said. former HUD secretaries Andrew Cuomo and Henry David Trott, “But we’ve been Supreme Court case recently after Clark Hill entered Cisneros during the Clinton administration. as well, now num- Trott & Trott bering at least six able to do it ethi- the lawsuit to seek the high court’s review of Michi- Turner’s work in the legal profession has includ- other businesses cally, and in an gan Court of Appeals and Oakland County Circuit Court ed serving as president of the National Bar Association other than the law firm. The firm environment that gives people a dismissals of the plaintiffs’ claims. (Latif Z. Oran and of the State Bar of Michigan. offers technological services for lot of job satisfaction. aka Randy Z. Oram v. John Oram and Gary Oram He is on the state Board of Education, chairs the City 2008.) The Orams owned Jam Sounds Specialist Inc. the foreclosure process, courier “So we haven’t lost many clients of Detroit Ethics Board, is vice chairman of the Detroit car stereo retailers in Ferndale, and John Oram was services and title insurance over the years, and we haven’t lost Police Foundation and the Detroit Institute of Arts, and the one-time owner of Boblo Island. through its Farmington Hills of- many employees. That’s a tribute is on the boards of Comerica Inc., the Hudson-Webber to our organization.” Turner appealed to the Michigan Supreme Court, fice and six other offices in other Foundation and the Community Foundation for South- Trott also is on the U.S. Chamber which reversed the Court of Appeals and the trial states. east Michigan. In 2006, Trott, 48, bought the for- of Commerce advisory committee. court and granted his client, Randy “Latif” Oram, a mer Compuware Corp. headquarters — Daniel Duggan new trial on his commercial claims. The defendants — Robert Ankeny 20081208-NEWS--0020-NAT-CCI-CD_-- 12/4/2008 3:36 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS December 8, 2008

FOCUS:LAW Kym Worthy Wayne County prosecutor

No local attorney faced more The challenge was prosecuting scrutiny and political pressure in the case while staying on budget Celebrating our first 60 years 2008 than Wayne County Prosecu- with limited staff and resources, tor Kym Worthy. she said. Devoted to the case full Honigman is proud to have been recognized in 2008 by our clients, peers and industry The veteran lawyer and former time were four attorneys with two judge in March charged then-De- other lawyers helping as needed, media for our leadership in various endeavors, which include: troit Mayor along with a pair of interns. Kwame Kil- Worthy estimated the case cost patrick with $1 million, and her only regret was CORPORATE perjury and ob- that the defendant didn’t take a struction of jus- plea deal sooner and save taxpayer BOARD MEMBER® MAGAZINE tice in connec- money. tion with a 2007 “I wouldn’t have done things dif- Rated the Best Corporate Law police whistle- ferently,” she said. Firm in Detroit for 2008 Named as one of the 50 "Best Law blower trial. The Kilpatrick case was far from by Corporate Board Member Firms for Women" for 2008 The charges Worthy’s first notable trial. Anoth- magazine for the third by Working Mother magazine led to Kil- Worthy er trial of note was the 1993 case of year in a row. patrick’s Sept. 4 Detroit Police Officers Walter and Flex-Time Lawyers LLC. guilty pleas, which included his Budzyn and Larry Nevers in the resignation as mayor and a 120- beating death of Malice Green. day jail sentence, which Worthy That led to her 1994 election to the demanded in exchange for approv- Wayne County Circuit Court, where ing the plea deal to allow Kil- she served as a judge for almost patrick to avoid a trial and a poten- nine years. tially longer prison term. In January 2004, Worthy was Worthy, 50, is all business when appointed Wayne County prosecu- Ranked number one 62 Honigman attorneys were honored asked about the case — the costli- tor to replace Michael Duggan, law firm in Michigan in Michigan Super Lawyers 2008, est and most time-consuming in who resigned to head the Detroit for the practice areas of with one attorney included in the her tenure as prosecutor. Medical Center. She was elected to a Corporate/Mergers and Acquisitions, Top 10 Michigan Super Lawyers; “This is just another case in the full term later that year and won Employee Benefits, Litigation and Real nine attorneys included in the Top 100 many we do in a year,” she said. re-election in November. Estate. Our Labor and Employment Michigan Super Lawyers, the most of But it was more than that. The Worthy’s office prosecutes 52 practice also was recognized as any law firm in Michigan; and three case dominated headlines locally percent of all felony cases in for much of the year and drew na- Michigan, and she had a 90 percent one of the leading practices attorneys named in the Top tional attention. It also drew out- conviction rate on cases that went in Michigan. 50 Women Super Lawyers. cry from Kilpatrick supporters to trial while she was an assistant who saw the mayor as a victim of prosecutor, according to statistics various intrigues — and loudly from her office. made their views known. With the Kilpatrick drama be- 69 Honigman attorneys were included in The Best Lawyers “Other people thought they hind her, she’d like to spend more in America 2009, with the highest number of attorneys in were putting political pressure on time on her office’s myriad crime Michigan in each of the following categories: Corporate Governance me. I didn’t allow political pres- prevention programs, but knows and Compliance, Corporate, Franchise Law, Government Relations, sure to affect what I did,” she said. that will be hard. Health Care, Insurance, Land Use and Zoning, Leveraged Buyouts “If you want to do this job proper- “In an urban prosecutor’s office, ly, you have to keep your head on things are never going to be calm,” and Private Equity, Mergers and Acquisitions, Real Estate, Securities, straight and make sure your focus she said. “I hope we never see an- Tax and Venture Capital. is on the ultimate goal — to do jus- other case like this.” tice.” — Bill Shea

For additional information, please contact Fritz Morsches, Chief Marketing Officer, at 313-465-7040 or [email protected].

H ONIGMAN M ILLER S CHWARTZ AND C OHN LLP LOOKING FOR DIVERSITY Crain’s Detroit Business, the services or processes that Detroit • Lansing • Oakland County • Ann Arbor • Kalamazoo Detroit Regional Chamber and the enhance productivity or improve WWW. HONIGMAN. COM Michigan Roundtable for Diversity workforce diversity. and Inclusion are launching a new Innovations that have been awards launched within the past two years program, the will be considered. Winners will be Innovation in honored at an April event and Diversity featured in the March 30 edition. Awards. Visit www.crainsdetroit.com/ It’s argued nominate to fill out the nomination that a diverse form. Questions? Contact Jennette workforce can approach problems Smith, [email protected], (313) more creatively or find new opportunities. We’re looking for 446-1622. For technical companies that can provide questions, contact Jennifer Dunn measurable results on those [email protected], (313) 446- fronts. Innovations can be in the 6786. form of new ideas, methods, Nominations are due Dec. 22.

WHO ARE THE TOP CFOS? CFOs are often the unsung heroes To nominate someone, visit of an organization’s senior www.crainsdetroit.com/nominate. management team. Crain’s Detroit Nominations must be received by Business is Jan. 5. seeking To be eligible, nominees must be nominations CFOs or hold an equivalent job. for its third- Judges will select winners based annual CFO on excellence in financial or other awards to operational management. give recognition to these financial Nominees will be considered for leaders. Winners and finalists will public companies, private be recognized at a June event. companies and nonprofits. 20081208-NEWS--0021-NAT-CCI-CD_-- 12/4/2008 6:03 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 21 CRAIN'S LIST: AIRLINES SERVING DETROIT METROPOLITAN AIRPORT Ranked by passengers boarded Total Total Domestic Domestic International International Company passengers passengers passengers passengers passengers passengers Tons of Tons of City; Phone; Web site boarded boarded boarded boarded boarded boarded enplaned cargo enplaned cargo Rank Local manager Jan.-Sept. 2008 Jan.-Sept. 2007 Jan.-Sept. 2008 Jan.-Sept. 2007 Jan.-Sept. 2008 Jan.-Sept. 2007 Jan.-Sept. 2008 Jan.-Sept. 2007 Northwest Airlines 8,054,817 8,435,076 7,145,800 7,537,108 909,017 897,968 25,470 13,708 1. Eagan, Minn.; (800) 225-2525; www.nwa.com Andrew Zarras, vice president of airport customer service NEWSCOM Pinnacle Airlines B 1,535,582 1,491,825 1,535,582 1,491,825 0 0 251 409 Some changes to expect with 2. Memphis; (800) 603-4594; www.nwairlink.com the merger of Northwest Russ Elander Airlines and Delta Air Lines Mesaba Airlines B 696,286 338,315 668,537 309,672 27,749 28,643 188 119 include new flight attendant 3. Minneapolis; (800) 225-2525; www.mesaba.com uniforms and new paint jobs. Steve Holme Spirit Airlines 600,430 737,247 585,519 720,313 14,911 16,934 0 9 Northwest/Delta 4. Fort Lauderdale, Fla.; (800) 772-7117; www.spiritair.com Cari Hays, acting station manager This year will be the first Southwest Airlines 452,723 468,589 452,723 468,589 0 0 969 1,020 full year of the $2.8 billion 5. Dallas; (800) 435-9791; www.southwest.com all-stock merger of Delta Air Lawrence Barber, station manager Lines Inc. and Northwest Air- 409,900 415,512 409,900 415,512 0 0 59 76 US Airways lines Corp. 6. Arlington, Va.; (800) 428-4322; www.usairways.com Chris Walrath Northwest’s 500 daily American Airlines/American Eagle Airlines 395,061 405,636 395,061 405,636 0 0 47 47 flights from Detroit made it 7. Fort Worth; (800) 433-7300; www.aa.com the carrier’s largest hub. Jim Jianette The initial changes are ex- Delta Air Lines 304,358 260,681 304,358 260,681 0 0 NA NA pected to include Delta food 8. Atlanta; (800) 221-1212; www.delta-air.com Basol Singleton and flight attendant uniforms United Airlines 241,941 267,056 241,941 267,056 0 0 13 26 on all flights, and Northwest’s 9. Elk Grove, Ill.; (800) 241-6522; www.ual.com jets will be repainted in Dave Miller Delta’s livery early this year. Continental 214,809 222,856 214,809 222,856 0 0 97 121 Bookings through the two 10. Houston; (800) 525-0280; www.flycontinental.com Bob Hall, general manager airlines’ separate Web sites Air Tran Airways 167,081 184,469 167,081 184,469 0 0 0 6 are expected to continue for 11. Orlando; (800) 247-8726; www.airtran.com some time, as will separate Jeff Gordon flight schedules. Frontier Airlines 95,038 96,890 95,038 96,860 0 0 44 32 The entire merger process, 12. Denver; (800) 432-1359; www.frontierairlines.com Tammara Faforke, city manager first announced in April and approved by regulators in USA 3000 94,368 85,671 58,857 50,740 35,511 34,931 NA NA 13. Philadelphia ; (877) 872-3000; www.usa3000.com October, is expected to take up to two years. Lufthansa 76,791 81,888 0 0 76,791 81,888 3,676 4,552 C 14. Frankfurt, Germany; (800) 645-3880; www.lufthansa.com The merger isn’t expected to Meredith Upward, district sales manager significantly affect the number 15. KLM Royal Dutch Airlines 41,753 NA 0 0 41,753 NA 567 NA of daily flights in and out of Amsterdam, Netherlands; (800) 374-7747; www.klm.com Metro, with just nonstop inter- Figures for total passengers boarded and tons of mail and cargo were provided by the community-relations office of Detroit Metropolitan Airport. Figures include regional operating carriers. national flights to Paris and B Operates under the name Northwest Airlink for Northwest Airlines. Osaka, Japan, being dropped C Comparable data for fiscal year 2007 does not include Lufthansa Airlines air freight. Lufthansa cargo began reporting the information in October 2007 and spans February 2007 to March 2008. — Bill Shea Oakland Physicians CEO says profit possible in 2009

BY CHAD HALCOM much better position without its Nov. 7. lenges. But the model can be entire- cluding 440 full-time positions. CRAIN’S DETROIT BUSINESS predecessor’s debt, and could The initial Oakland Physicians ly successful,” he said. “When you Jack Weiner, president and CEO “right-size” and retool supply con- consortium of 150 or so senior staff look at the fact that it’s so largely of St. Joseph Mercy Oakland Hospital Clarence Sevillian II doesn’t have tracts in time to post a 1 percent to 2 and doctors with privileges at physician-owned, the staff will in Pontiac, said he is skeptical and a business card for his new posi- percent profit margin by the end of NOMC now own a 60 percent make suggestions and ideas and we believes the long-term “rational tion, but he plans to make Michi- 2009. share, and previous President Anil can draw on that pool of resources. market” for Pontiac is two hospi- gan’s first for- “It’s easy for some to think that Kumar now becomes chairman of And they’ll be willing to work totals rather than the current three. profit acute care because a facility has 306 beds that the hospital board. gether, handle difficult decisions, He also doubts that McLaren hospital live up we have to have 285 of them filled As CEO, Sevillian reports to a and change to make it work.” would want to invest in two of to that distinc- or we’re not operating at a profit,” five-member board at Doctors Hos- Tompkins also noted that those three hospitals, POH and tion — and soon. he said. pital: Kumar; his fellow executive McLaren has a verifiable history NOMC, unless it plans eventually Sevillian “But you can right-size your or- committee members Mahmood of turning around money-losing to relocate one of them. plans to make ganization to have a 90-100 bed hos- Khalid and Yatinder Singhal; hospitals it acquires. “If they’re intending to operate his first public pital that’s consistently profitable. McLaren President and CEO Philip The former Mt. Clemens General at a level of 100 patients a day, then appearances You can focus on the community Incarnati; and McLaren senior Vice Hospital had lost more than $70 mil- I doubt seriously they’re going to this month as and emphasize surgical and select President and Chief Administrative lion in the five years before be able to bring back more than Sevillian the new presi- features that you provide, we can Officer Gregory Lane. McLaren purchased it in late 2006, about 300 employees for that,” he dent and CEO of improve operations and with Kevin Tompkins, vice president and Mt. Clemens Regional Medical said. Oakland Physicians Medical Center McLaren (Health Care Corp.), we also of marketing for McLaren, and Center was operating at more than Sevillian started out as a physi- L.L.C., doing business as the Doctors benefit from using the economies Sevillian both said the hospital a $5 million profit a year later. cal therapist in the McLaren orga- Hospital of Michigan on the grounds of scale. It can be done.” can and will trim costs consider- The Flint-based chain also helped nization in 1998. He played wide of now-bankrupt North Oakland Sevillian, 38, had his first meet- ably by joining in its minority return Pontiac Osteopathic Hospital to receiver for Vanderbilt University Medical Centers in Pontiac. ing with the Oakland Physicians’ owner’s much-larger network of profitability, a year after that acqui- in his undergraduate days, and The predecessor hospital, board Nov. 21 and assumed the du- vendors and supplier agreements. sition in September 2007. signed to play briefly with the NOMC, lost $13.4 million on rev- ties of president and CEO Nov. 24. Sevillian also believes some of When the hospital reopened Cincinnati Bengals during the 1993 enue of roughly $95 million in 2007 He had previously served as vice NOMC’s past fall-off — from $115.6 Nov. 1 it had fewer than 10 inpa- season, before returning to school and had tallied a $12 million loss president of operations for million in 2006 to $95 to $96 million tients. As of last week it was at UM-Flint to become a licensed for 2008 to date when it briefly McLaren’s Lapeer Regional Medical in 2007 — was tied to patient uncer- around 50, with a turnover of physical therapist. closed Oct. 28-31. Center since mid-2006. tainty about its future in the last roughly 15 patients per day. Sevil- He obtained an MBA degree It reopened Nov. 1 as the parties McLaren acquired a 35 percent year of operation, and can be stabi- lian expects it will expand further from the University of Michigan-Flint finalized a sale at U.S. Bankruptcy ownership stake in Doctors Hospi- lized by building community confi- to at least 90 to 100 in the coming in 2005. Court in Detroit. tal as an institutional investor un- dence. months, and that it expects to Chad Halcom: (313) 446-6796, Sevillian said the hospital is in a der the terms of a sale finalized on “It’s the challenge of all chal- maintain at least 600 employees in- [email protected] 20081208-NEWS--0022-NAT-CCI-CD_-- 12/4/2008 6:17 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS December 8, 2008 Detroit’s negative image and its fix start here, chamber says

BY DANIEL DUGGAN Carroll was Renaissance charged with work- as trade publications and bloggers. associated with many of the region’s CRAIN’S DETROIT BUSINESS one of the speaking on the region’s image. One of Reporters who come to town work- large corporations, for example, ers Wednesday the committee’s end results is ing on stories will be able to get in- spread large amounts of informa- The metro region’s worst ene- at Business DNews, a targeted media-relations formation and data from DNews. tion. The “about us” segment of a mies aren’t outside Michigan, but Over Breakfast, plan for the region. Another key to the image is the company’s Web site could include rather right here at home. held at the Re- Heading that group is Marge message itself, said Jim information about the Detroit re- And fixing that problem will naissance Confer- Sorge, who spoke at the event. Townsend, executive director of gion in addition to information need to come from inside as well, ence Center. The She said DNews will be a place the Tourism Economic Development about the company itself. said John Carroll, senior vice pres- event was host- where reporters can obtain data Council, an arm of the Detroit Metro “That’s usually the worst part of ident of business development at ed by Crain’s De- and information about the region, Convention and Visitors Bureau. a Web site and doesn’t have a lot of the Detroit Regional Chamber. Carroll troit Business. highlighting some of the positive Townsend has been the driving information on it,” he said. “Why “What I’ve found is the farther Working on news that often can be overshad- force behind the “D Brand” effort not use some of that space to high- you get from Detroit, the better the image issues is a long process, owed by the negative. to cast the region as edgy, urban light the region?” image is,” Carroll said. “This nega- however. “We’ll try to get some of our un- and creative. Since enacting the Likewise, companies can in- tive self-image is something that One place to start is with the me- der-reported stories reported,” branding effort in 2007, there has clude some tidbits about the re- we project ourselves right here. dia, said Mary Kramer, publisher Sorge said. been an increase of 100,000 visitors gion in the boilerplate language at “It starts with us, and we have to of Crain’s and co-chair of a com- The group will target traditional to the area, bringing $70 million in the bottom of their press releases work hard to fix it.” mittee established by the Road to and nontraditional media as well direct spending, he said. sent out each day. The business community can “The real message,” Townsend play a role in helping the brand, said, “is that this has to start with he said, by reinforcing the brand us.” message. Daniel Duggan: (313) 446-0414, MARKET PLACE The public-relations operations [email protected]

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MADE-TO-ORDER system, valued at $2.9 million, IN YOUR FINE "*3 COMFORT FOOTWEAR BY: and equipment installation compa- www.ConfidentialBusinessSale.com with engineering scheduled to Detroit Metro Office 313-221-9378 West Bloomﬁeld ny, laid a winning gamble on Las start next June and to finish in 248.960.0939 Vegas. January 2010, Tooles said. FILE STORAGE DOZENS OF STYLES MADE TO ANY SIZE & WIDTH Company clients now include Tooles began his third job for PERSONALIZED SERVICE WITH COMPLETE FOOT ASSESSMENT General Motors MGM Mirage in March, building a Get your warehouse organized and operating Corp., Ford Motor efficiently with the help of the professional space HIGHEST QUALITY MATERIALS & UNSURPASSED COMFORT high-limit slot area valued at $4.1 planners at www.Shelving.com. Our trained Co., DTE Energy million, to replace the casino’s Big space consultants will put your space to work. 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MOVES Professor at MSU Farmington Hills, MI 48334 Tooles also has diversified his Phone (248) 406-4100, www.antone.com business into Las Vegas from his FINANCE home base in Detroit, where his company did preconstruction Seeking a high energy Treasury TELECOMMUNICATIONS work on MotorCity Casino. Management Sales Officer, CCM or CTP certification desired or within one year of WILL BUY The company, established in ALL OFFICE TELEPHONE EQUIPMENT employment, 3 years Treasury Sales or Please Call: 877-RICHARD 2006, had more than 900 percent related experience, bachelor’s degree in Please Call: 877-742-4273 growth from its first to second finance or accounting. Self-motivated year, thanks to the Vegas work. self-starter eager to sell and take WEB DESIGN responsibility beyond job description and In September 2006, Tooles consult and present to external and internal opened a fully staffed, licensed and audiences. Collaborates with related bank bonded office in Las Vegas and personnel and keeps abreast of industry was awarded its first job at New developments and clients’ needs. High caliber sales, communication, and related York/New York casino. The compa- business skills that anticipate and address ny grew to a nine-member staff in concerns and offer solutions required to join EQUIPMENT & our team. Equal Opportunity Employer Call Us For Personalized 2007, with revenue of $6.8 million. MERCHANDISE “For casinos, gaming space rep- Service: (313) 446-6068 Applicants may apply at www.tcfbank.com resents revenue. We completed under Career Opportunities or fax a resume BUSINESS & OFFICE FURNITURE work in 96 days on a bid contract CLOSING TIMES: Monday 3 p.m., to (734) 542-2975 or mail to: INVESTMENTS that had 193 change orders plus 80 MUST SELL, OFFICE CLOSED one week prior to publication date. Please call us for holiday closing times. more for esthetics,” he said. TCF Bank Human Resources BUSINESSES FOR SALE Desks $99, Chairs $39, Files $49, Partitions $50, 17440 College Parkway, 604-01-J Lateral Files $99, Cubicles, Office Phone Systems The company is working on two Call (248) 548-6404 or (248) 474-3375. FAX: (313) 446-1757 Livonia, MI 48152 JET’S PIZZA FRANCHISES IN NORTHERN OHIO E-MAIL: [email protected] projects in Las Vegas with MGM Mi- Three operating stores with future territorial TELECOMMUNICATIONS © 2008 TCF National Bank, Member FDIC agreement. Call 586-412-0010 INTERNET: rage’s $8.4 billion CityCenter, the www.crainsdetroit.com/section/classifieds largest privately financed project INVESTMENT OPPORTUNITIES LUCENT . . . AVAYA. . . PARTNER. . . FINANCE MAGIX. . . VOIP. . .LEGEND . . . Confidential Reply Boxes Available in U.S. history. MERLIN. . .SPIRIT Systems/Parts New/refurbished. To increase minority participa- Omnicall Equipment Corp. (248) 848-9282 PAYMENT: All classified ads must be Invest in 100% Insured Mortgage Loans tion, the general contractor, Perini CHIEF FINANCIAL OFFICER WE HAVE USED PHONES prepaid. Checks, money order or • Above Market Yields Crain’s credit approval accepted. Building Co., implemented several Private Real Estate Holding Company with • Short-Term Nortel, Lucent, phone systems. Almost any new or used phone available. Expert installation available. Credit cards accepted. programs to match minority and multiple entities seeks CFO with Banking & • Possible Rollover Option Call (248)548-6404 Finance experience to oversee debt placement, • Average Investment $100,000 See women-owned businesses with its Budgeting & Forecasting, Cost Control, and project management teams. Growth Strategies. Towne Mortgage Company Advertise your goods and services in Crainsdetroit.com/Section/Classifieds Fax resume to 810.767.1196. (248) 247-1802 Crain’s Detroit Business for more classified advertisements Under the program, Tooles was 20081208-NEWS--0023-NAT-CCI-CD_-- 12/4/2008 5:29 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 23 BUSINESS DIARY CALENDAR CALL FOR NOMINATIONS services and marketing firm, has re- morrow’s leaders. Walsh Col- designed the Web site for sign compa- WEDNESDAY lege, Novi Campus, Novi. $10. The 2008 Intex Achievement Award, ny SignGraphix Inc., (www.sign KEITH CRAIN TO ADDRESS ECONOMIC DEC. 10 sponsored by Architectural Contrac- Contact: (313) 220-0399. graphix.net) of Farmington Hills. tors Industry Advancement Fund and CLUB ON THURSDAY Douglas Communications Group B2B Business Development Architectural Contractors Trade Asso- Series: Market Research. 4:30- L.L.C., Royal Oak, has been retained Keith Crain, chairman of Crain Communications ciation. Submissions are now being 6:30 p.m. Automation Alley, COMING accepted by anyone in the construc- to provide public-relations services Inc., editor-in-chief of Crain’s Detroit Business for winebuys.com, a Ferndale-based and publisher of Automotive Troy. $20 members, $40 others. EVENTS tion industry. Projects must be com- Contact: (800) 427-5100. pleted between Dec. 1, 2007, and Dec. Internet wine sales company. News, will discuss the state Where the Automotive World 31, 2008, and located in the counties of of the auto industry at the Comes Together. Detroit Eco- Oakland, Wayne, Macomb, Genesee, JOINT VENTURES Thursday meeting of the SATURDAY nomic Club. 10:30 a.m.-12:30 Lapeer, Livingston or Washtenaw. Detroit Economic Club. Global Tech International Inc., Fraser, p.m. Dec. 18. Joe Serra, presi- Deadline: Dec. 19. An awards event is and Weldmation, Madison Heights, Tickets for the 11:30 a.m.- DEC. 13 dent, Serra Automotive, and to be held in April. For more informa- are to form Global Ventures Technolo- 1:30 p.m. event at the tion, call: (248) 324-1998. The Evolution of Women in co-chairman, 2009 North Amer- gy Group. The joint venture is to pro- Westin Book Cadillac Hotel Leadership Conference. 8:30 The Michigan Business and Profes- duce industrial products including ican International Auto Show. are $40 for club members, a.m.-1:30 p.m. Walsh College, sional Association, Warren, is seeking composite building construction ma- Featuring the live unveiling of $50 for guests of members Walsh Business Leadership In- nominations of professional women terials, automotive materials, auto- and $75 for nonmembers. stitute, Medstar Ambulance, the 2009 North American Car to honor at its 13th annual “Women motive components and complete and Truck of the Year finalists. and Leadership in the Workplace” high tech assembly systems. Crain For more information, call Abso-pure. Participants will (313) 963-8547 or visit have the opportunity to learn Cobo Center, Detroit. $40 mem- symposium and awards luncheon. The Detroit Metro Convention and Visi- www.econclub.org. from women leaders as they bers, $50 guests, $75 others. Awards will be presented to women in tors Bureau and the Dearborn Chamber teach, motivate and inspire to- Contact: (313) 963-8547. business, professional, civic affairs/ of Commerce have unveiled a program government, small business achieve- to extend an outreach from the Detroit- ment, media, human service/philan- based bureau to the Dearborn cham- thropy and education. Deadline: Dec. ber’s suburban members. The Dear- 12. The event is to take place March 1. born chamber and the DMCVB will For more information, call (888) 277- also jointly market and promote Dear- 6464 or visit www.michbusiness.org. born as a destination to work and visit. REAL ESTATE

CONTRACTS LITERATURE AUCTIONS INDUSTRIAL PROPERTY Hobbs + Black Architects, Ann Arbor, The Dearborn Chamber of Commerce completed design and construction has created a local holiday shopping PUBLIC AUCTION Wed., December 17th at 10:00 am for Bell Memorial Hospital, a 109,000- guide, available at www.dearborn square-foot hospital in Ishpeming. chamber.org. Grand River, Ann Arbor, has been cho- The Livingston County Convention and 23,860 SF Commercial/Industrial Building on 1.2 Acres Now Leasing: 83,700 sq. ft. sen by Midwest Wireless, a Minneso- Visitors Bureau, Howell, has released Location: 12720 Burt Rd., Detroit, MI ta-based telephone company, to create its Winter and Spring Events & Activi- Where Quality Tenants Find Exceptional Value an e-commerce Web site for Midwest ties brochure. It is available from the • Catellus Group, LLC 810-695-7700 Wireless’ new national brand, Snap- bureau, (517) 548-1795 or (800) 686-8474. Numerous Possibilities, Zoned M-4 Jack Wireless. • Newer Roof SMZ Advertising, Troy, has been cho- MOVES • Renovations in 08, w/ Updated Offices OFFICE SPACE sen by Taubman Centers Inc., Bloom- • field Hills, to promote its national ex- The CPA firm Lawrence H. Kohlenberg 5 Overhead Cranes (1T - 5T) hibit of giant snow globes for the CPA P.L.L.C. to 31313 Northwestern • Fenced Parking w/ electronic gate holidays. Highway, Suite 102, Farmington Hills. TERMS Telephone remains: (248) 865-3300. Strat@comm L.L.C. has added the 10% Buyers Premium is Added, 10% Down Day of Sale, Balance & Possession at Closing. Washington, D.C., Intelligent Trans- portation Society of America, German- NEW SERVICES EQUIPMENT based automotive supplier Freuden- Assets International, Southfield, an GMC Stake Truck; GMC Van; InterLake Pallet Racking & Wire Decking; berg Nonwovens and Ann Arbor’s assets relocation company, has been MERCHANT’S ROW Center for Automotive Research as certified as a licensed private investi- Bathroom Partitions & Assessories; Storage Cabinets; Carts; Work Benches; Tool Cabinets; clients in the communications firm’s gation agency. Master Lock Lockers; Industrial Shelving; Edsal Work Tables; Office Furniture & More!! For Lease Detroit and Washington offices. TERMS OF EQUIPMENT Ideal for professional services Maddin, Hauser, Wartell, Roth & 1200-1400 Woodward, Detroit Sacred Heart Major Seminary, De- Heller P.C., a Southfield law firm, an- Cash, Check w/ Bank Letter, Visa or M/C. 10% Buyers Premium Added Suites from 1,600 up to 12,405 SF troit, has become a community part- nounced a new distressed real estate ner of the Southeast Michigan pro- asset group composed of attorneys Wilson Auction & Realty Co., LTD. Real Estate is in Co-Operation with • Excellent Woodward exposure gram of Leave a Legacy. Also, The Ann from its real estate, litigation and • In the heart of the Campus Martius Arbor Area Community Foundation an- mortgage lending groups. Call Toll Free: 866-870-5500 Colliers International Wayne M. Wilson CAI, Brent J. Wilson CAI Scott McGinnis, 248-540-1000 • Walking distance to world class sporting nounced it is continuing its partner- American Laser Centers, Farmington venues ship with Leave a Legacy. Hills, has introduced a referral mar- Contact: Deb Munro or Chuck Thompson FH Martin Constructors, Warren, was keting bonus program for clients of 248-352-5000 First Commercial awarded several projects. FH Martin the laser hair-removal center. Broker participation encouraged! is the general contractor for the ex- Stacy Goldberg of West Bloomfield www.WilsonAuctionLtd.com www.colliers.com/detroit pansion and renovation of Kroger Township, founder of A Weigh of Life stores in Brownstown Township and Inc., has partnered with Plum Market AUCTIONS INDUSTRIAL PROPERTY St. Clair Shores. The company also to offer Secrets for Smart Shopping was selected to build a Chase bank in Grocery Store Tours. The tours in- AVAILABLE NOW Macomb Township. FH Martin also clude nutritional information and 3XEOLF/DQG$XFWLRQ was selected to convert a Toledo Pub- tips on healthy and efficient grocery 3ULPH'HYHORSPHQW 4,000 to 100,000 sq. ft. RETAIL SPACE lic School District high school into a shopping. Specific tours and consulta- /RWV 2QH$FUH3DUFHO Also 10,000 & 25,000 sq. ft. YMCA and was named general con- tions regarding food allergies, celiac Free Standing Bldgs w/truckwells. tractor for construction of a Menards Great Retail Opportunity disease and general health and well- 1 Mile from Metro Airport Inc. store in Sandusky, Ohio. ness are also available. %HOOH5LGJH6XEGLYLVLRQ'U\GHQ0, in the most sought after REA CONSTRUCTION retail destination in Metro Detroit! EXPANSIONS OTHER (734) 946-8730 - Expand your customer base - Fisker Automotive Inc., an Irvine, NSF, Ann Arbor, announced KL Texas Also Heavy Industrial share this spacious building with Calif.-based car company, has opened a L.P. (dba Summit Industrial Products), Land Available Michigan’s Premier Rug Retailer new engineering and development cen- Tyler, Texas, is the first company in $XFWLRQ+HOGDW4XQL¶V5HVWDXUDQW ter in Pontiac. The center will house up www.reaconstruction.net FOR LEASE North America to receive certifica- 0DLQ6W'U\GHQ0, to 200 engineers and designers to sup- tion to ISO 21469: Safety of machinery- 43223 Twelve Mile, Novi port the development and production lubricants with incidental product 2IIVLWH7KXUV'HFWKDWSP (12 Oaks Mall perimeter) of the Fisker Karma hybrid sports car. contact — hygiene requirements. The 3UHYLHZ 5HJLVWUDWLRQDWSP Call Us For Personalized The Karma is to be sold in North Amer- international standard specifies re- %HDPRQJWKHILUVWWRGLVFRYHU%HDXWLIXO%HOOH Service: (313) 446-6068 5,000-30,000 Sq Ft available ica in the fourth quarter of 2009. quirements for lubricants, which may 5LGJHLQ'U\GHQ0LFKLJDQ,WZLOOEHORYHDW Space is divisible / Brokers protected Papa Romano’s Pizza, 35346 Michigan come into contact with products dur- ILUVW VLJKW ZKHQ \RX YLHZ WKLV EUHDWKWDNLQJ Ave. in Wayne, has been remodeled ing manufacturing or processing. ZRRGHGVHWWLQJWKDWLVWKHSHUIHFWVSRWWREXLOG CLOSING TIMES: Monday 3 p.m., and now offers both Mr. Pita sandwich- \RXU GUHDP KRPH 0DUN \RXU FDOHQGDUV IRU one week prior to publication date. es and Papa Romano’s Pizza. Both are \RXUFKDQFH WR ELG RQ RQH RI WKHVH GHVLUDEOH Please call us for holiday closing times. KRPH VLWHV 7KLV LV D IDQWDVWLF RSSRUWXQLW\ WR owned and operated by Askar Brands RZQDSLHFHRISDUDGLVH)RXUUHVLGHQWLDOORWV FAX: (313) 446-1757 L.L.C. of Commerce Township. VHOOLQJDQG2QHDFUHSDUFHO DIARY GUIDELINES E-MAIL: [email protected] Contact Edgar Hagopian Ace Hardware, Oak Brook, Ill., has 'LUHFWLRQVWRYLHZORWV1RUWKRQ5RFKHVWHU5G opened three new hardware and home Send news releases for Business WR5LJKWRQWR'U\GHQ5G'U\GHQ5GWXUQVLQWR INTERNET: (248) 207-8737 improvement stores: Tri-City Ace Diary to Joanne Scharich, Crain’s 0DLQ6W0DNHD5LJKWRQWR%HOOH5LGJH'U www.crainsdetroit.com/section/classifieds [email protected] Hardware in Clawson, Beverly Hills Detroit Business, 1155 Gratiot $XFWLRQZLOOEHKHOGRIIVLWH Confidential Reply Boxes Available Ace Hardware in Beverly Hills and Ave., Detroit, MI 48207-2997 or 5RVH$XFWLRQ*URXS//& Commerce Ace Hardware in Com- send e-mail to jscharich@crain. PAYMENT: All classified ads must be WATERFRONT PROPERTY merce Township. com. Use any Business Diary item 5RVH$XFWLRQ*URXSFRP prepaid. Checks, money order or Toast, a Ferndale restaurant known as a model for your release, and %HWK5RVH&$,$XFWLRQHHU Crain’s credit approval accepted. ON ORCHARD LAKE for its breakfast menu, has opened its look for the appropriate category. Credit cards accepted. 4 bedroom ranch, 3 1/2 baths on INVESTMENT PROPERTY 1.4 acres premium lot. 248-335-0104 second location in Birmingham. Without complete information, www.5081commerce.com Krieger Associates, a Ferndale archi- your item will not run. Photos are See LYON TOWNSHIP/BANK OWNED LARGE 1 ACRE LAKEFRONT LOTS - tecture and interior design firm, de- welcome, but we cannot Crainsdetroit.com/Section/Classifieds 15 min from signed the new location. 12-unit rental townhouse project available. Novi/Ann Arbor on all sports lake in Brighton. ALSO, guarantee they will be used. Get a great deal on this investment opportunity. for more classified advertisements 4100 sf new Lakefront home ready for move-in 90 DesignHub Inc., a Saline-based creative Contact Karen Shepherd at 248-290-5300 ext. 311 days. Discounts Available.Call 810-220-8060 20081208-NEWS--0024-NAT-CCI-CD_-- 12/4/2008 6:02 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS December 8, 2008 Detroit, Oakland Habitat groups PEOPLE ARCHITECTURE Tracy Petrella to IN THE SPOTLIGHT project manager, Fanning/Howey Robert Kubic to collaborate, not merge — yet Associates Inc., has been Novi, from project named COO of coordinator. Detroit-based BY SHERRI BEGIN WELCH year mortgages at zero percent interest. Ann Kenyon to co- law firm CRAIN’S DETROIT BUSINESS The Oakland County affiliate reported revenue of leader, Health Honigman $2.1 million in 2007, up from just under $2 million Studio, Smith- Miller Schwartz Group, Detroit, and Cohn L.L.P. A full merger might not yet be the answer for two the year before. from project ar- Kubic, 43, local Habitat for Humanity affiliates. Running just one ReStore operation in metro De- But Habitat for Humanity Detroit and Habitat for Hu- chitect, Hobbs + replaces the troit is more efficient, makes the stores more accessi- Black Associates, Petrella retiring manity of Oakland County are coordinating their Re- Ann Arbor. ble and offers the greatest resources to the community, Kubic Michael Gable. Store operations, which sell salvaged and purchased LePla said. Jim Luckey to director of design, SHW home lighting, fixtures and appliances to generate Before joining Honigman, Kubic The Detroit ReStore is serving as a centralized Group, Detroit, from principal and was COO at Boston-based revenue for home construction. Mintz call center for both affiliates, she said. lead design architect, SmithGroup, Levin Cohn Ferris Glovsky & Popeo And they’re talking about expanding their joint Chicago. Andy Andersen, director of the Habitat for Hu- P.C. work to donation pickups, material contract bidding manity Detroit’s ReStore operations, has assumed Kubic earned a bachelor of arts and fundraising. ENGINEERING oversight for Oakland County’s Pontiac store and is degree from Hiram College in Ohio Whether that collaboration could parlay into a Steve Dawson to director of sales, Xig- working to increase foot traffic to that store, dona- and his MBA from the merger is still uncertain, the organizations said. ma Engineering Services L.L.C., Lin- tions to the Detroit location and revenue for both or- Weatherhead School of “The kind of collaborative work across affiliate coln Park, from accounting manager Management at Case Western ganizations. for General Motors Corp., Cognitiens, lines is so new, we’ve never gone beyond those discus- Reserve University in Cleveland. The stores will continue to operate as separate en- Wixom. sions,” said Sally LePla, executive director of Pontiac- tities, however, with no revenue sharing, he said. and Dealer Technical Operations, based Habitat for Humanity of Oakland County. FINANCE Chrysler L.L.C., Auburn Hills. Because each affiliate began as a grassroots effort The Pontiac store should have revenue of about $250,000 this year and $300,000 in 2009, up from Robert Biskup to Mitchell Cohen to vice president of “what you get are board members who have a cer- technology, ForeSee Results, Ann Ar- $186,000 last year, he said. director, Forensic tain sense of ownership and outlook,” she said. and Dispute Ser- bor, from director of technology. Andersen projects the Detroit ReStore location “If we ever talked about looking at combining the vices practice, De- Jody Stidham to two affiliates, it would be further down the road.” will earn revenue of $1.33 million this year, up from loitte Financial global practice di- Vincent Tilford, executive director of Habitat for $1.2 million in 2007. Advisory Services rector of cus- L.L.P., Detroit, The two affiliates will jointly own a third ReStore tomer solutions, Humanity Detroit, said he sees a series of strategic from global direc- location under development, Andersen said. Urban Science, alliances between the two organizations, rather tor of compliance, than a merger. He is hoping for a donated building of at least Ford Motor Co., Detroit, from di- People are confused when they come across Habi- 20,000 square feet. But his contingency plan calls for Dearborn. rector of lifecycle management, leasing a building for the third store to open some- Mark Barnes to tats for different areas, not understanding each General Motors time next year. Biskup partner, KPMG Habitat serves a different county or region and oper- Corp., Detroit. ates independently, Tilford said. The joint work on the stores has the affiliates con- L.L.P., Detroit, from managing director-advisory. Also, Michael Dingwall Gil Lapastora to “If we present one Habitat face, at least through- sidering collaboration in other areas, such as dona- to partner, from senior manager-au- Stidham associate creative out Oakland and Wayne (counties,) it would certain- tion pickups and joint bidding of materials con- dit; Joseph Kowalski to partner, from director, ly make it easier on us and also show we are trying tracts, she said. senior manager-audit; Suzanne Vin- pushtwentytwo, Pontiac, from senior to be more efficient.” Such joint bidding could provide one-year or two- cent to partner, from senior manager- designer, Campbell-Ewald, Warren. Habitat for Humanity Detroit reported 2007 total year contracts to local material suppliers, LePla said. audit; and Kevin Voigt to partner, from managing director-tax. revenue of $4.1 million and is projecting about $6.4 The two also plan to begin working together on NONPROFITS James Juliano to partner, Equity 11 million in 2008 as a number of mortgage closings car- fundraising in the coming year, she said. Pam Barclay to Team Challenge en- Ltd., Auburn Hills, from founder, ried over into January and February, said Tilford. Sherri Begin Welch: (313) 446-1694, Omega Development Corp., Warren. durance manager, The Crohn’s and The nonprofit provides qualified buyers with 20- [email protected] Colitis Foundation of America, Michi- HEALTH CARE gan Chapter, Farmington Hills, from volunteer services counselor, East Kathleen Yarem- Carolina University, Greenville, N.C. chuk to chair of the Department of Otolaryngolo- SERVICES gy, Head and Paul Bortell III to vice president of busi- SM Neck Surgery, ness development, Applied Innovation Bowne Compliance Driver Henry Ford Hospi- SM Alliance L.L.C., West Bloomfield Town- Compliance Driver tal, Detroit, from ship, from founder and president, interim chair, American Synergistics Inc., Livonia. and continuing as Mark Lifter to president, Pathway Hu- Automate your external reporting process vice president of , South- Clinical Practice man Capital Advisors L.L.C. Yaremchuk Performance for field, from executive vice president, the Henry Ford Aon Consulting, Southfield. Medical Group, Detroit. Douglas Shantz to A&D market man- Nicole Brach to executive director, ager, Interior Environments, South- Michigan Institute of Urology, St. Clair field, from national sales director, Shores, from director, case manage- Tessuto Vertical, Atlanta. ment, St. John Hospital and Medical Center, Detroit. SUPPLIERS Leigh Ann Phillips to director of ICU, Louis Lavorata to senior vice president DMC Sinai-Grace Hospital, Detroit, and CFO, Citation Corp., Novi, from from unit director, Henry Ford Hospi- CFO, LD Holdings Inc., Pittsburgh. tal, Detroit. Steven Phillips to chairman and CEO, INFO/TECHNOLOGY Detroit Technologies Inc., Detroit, Carl Herzog to vice president of busi- from COO. ness development, WorkForce Soft- ware Inc., Livonia, from business leader and corporate development PEOPLE GUIDELINES consultant, Hewitt Associates, Lin- colnshire, Ill. Announcements are limited to management positions. Nonprofit LAW and industry group board appointments can be found at William Boudreaux, Kelly Burris and www.crainsdetroit.com. Send Bradley Smith to shareholder, Brinks Hofer Gilson & Lione, Ann Arbor, from submissions for People to Joanne attorney. Scharich, Crain’s Detroit Business, Scott Wolfson to partner, Bush 1155 Gratiot Ave., Detroit, MI Seyferth & Paige P.L.L.C., Troy, from 48207-2997, or send e-mail to equity partner, bankruptcy, reorgani- [email protected]. Releases zation and commercial practice, must contain the person’s name, compliance Honigman Miller Schwartz and Cohn new title, company, city in which L.L.P., Detroit. the person will work, former title, former company (if not promoted MARKETING from within) and former city in James Belleau to director of business which the person worked. Photos COMPLIANCE PROFESSIONALS TURN TO BOWNE FOR INTEGRATED CORPORATE COMPLIANCE SOLUTIONS VISIT BOWNE.COM/BCD development, J.R. Thompson Co., are welcome, but we cannot Bowne Compliance DriverSM is powered by Clarity Systems. Farmington Hills, from director of the guarantee they will be used. National Customer Assistance Center 20081208-NEWS--0025-NAT-CCI-CD_-- 12/5/2008 5:42 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 25 Chiropractors get House OK for expanded treatments

BY JAY GREENE ductive to the goal of providing safe, form physical and rehabilitative ical scans, including MRI, comput- manipulation techniques. CRAIN’S DETROIT BUSINESS high-quality health care in Michi- medicine, pending regulations. ed axial tomography (CT) and “Increasing the areas of the body gan,” according to Educate, Don’t Dr. James Gregg, a member of the positron emission tomography to treat increases the number of im- Michigan chiropractors are Legislate, a state coalition of medical Michigan Association of Chiropractors’ (PET) scans. ages needed prior to treatment, halfway toward achieving their associations, including the state government relations committee, The bill would allow chiroprac- which causes costs to rise,” the goal of expanding their scope of medical society. said in a statement that the group tors to examine and treat patients medical associations said. practice to allow them to order ad- “No public benefit would be de- will press its case in the Senate. for spinal “subluxations and mis- But the bill would exclude auto- vanced radiology scans, including rived from expanding chiroprac- “This is an historic day for the alignments that produce nerve in- matic insurance payments for the magnetic resonance imaging, and tors’ scope of practice beyond their chiropractic profession,” Gregg terference or joint dysfunction,” ac- expanded scope of practice. Michi- to treat neuromuscular and skeletal education and training,” the med- said. “We overcame insurmount- cording to the bill. gan law now requires insurers to disorders. ical associations said. able odds in making this happen.” “We don’t think they have the ad- pay for any medical procedure al- The Michigan State Medical Soci- The bills would expand the areas The legislative package includes equate education to prescribe these lowable under state statute. ety and the Economic Alliance of of the body that chiropractors are House Bills 5759, 6201, 6407, 6408, scans,” Horwitz said. “Physicians “We are pleased the bills have ex- Michigan oppose several of the allowed to treat. They are now lim- 6409, 6410 and 6411. who order these tests have trained clusion for automatic insurance bills, which were approved last ited to treating the spine. Larry Horwitz, president of the radiologists interpret the scans. payment,” Horwitz said. “Individ- week by the state House and are Chiropractors would be allowed Economic Alliance of Michigan, This bill will lower quality and in- ual insurers could still choose to expected to be heard in the Senate to treat all areas of the body except said the alliance most strongly op- crease medical costs.” cover this as a benefit.” on Wednesday. the head and internal organs. The poses H.B. 6201, which would allow Chiropractors generally take X- Jay Greene: (313) 446-0325, “This legislation is counterpro- bills also would allow them to per- chiropractors to order any radiolog- rays before treating patients with [email protected] Software firm Stardock plans expansion, waits for word on tax breaks

BY CHAD HALCOM are at that stage of development,” CRAIN’S DETROIT BUSINESS he said. “This way (with two stu- dios), we could ideally launch a Stardock Corp., a Plymouth product of our own every 12-18 Township-based software develop- months and continue to work ment company, could begin an ex- more with our current third-party pansion and hiring push at its publishing partners.” headquarters by early 2009 if it A new gaming development wins approval of a pending request team for the second studio would for state tax in- mean about 18 new employees, and centives. the company also expects to ex- Stardock de- pand in other departments, velops and pub- Wardell said. But building im- lishes games provements to accommodate a sec- and PC-platform ond studio would require at least a Cézanne desktop soft- $600,000 investment, he said. Dalí ware tools. “The state might help us with a President and couple of tax breaks, so an expan- Degas CEO Brad sion like this is not all just a drain Wardell said Wardell on our available cash,” he said. “If Gauguin Stardock was it all works out, we might be able Magritte eyeing a possible move to Redmond, to do the expansion by the end of Wash., earlier this year but now has first-quarter 2009, but that depends bought much of the space in the Matisse on some factors external to us.” building it had shared with other The company already has ap- Modigliani companies. proval for assistance with tax in- October 12, 2008 – January 18, 2009 The plan, he said, is to add new centives from Wayne County’s Monet features, including a second gaming Transforming Urban Residential & Masterpiece after masterpiece after masterpiece. studio, so that Stardock can have Picasso Business Opportunities and held dis- See them now. more than one game under develop- cussions last week with the Michi- ment at once. Renoir gan Economic Development Corp. For tickets visit www.dia.org or the DIA Box Ofﬁce. “A game is something that al- about state incentives as well, said Rodin ways continues to sell and gener- Members receive FREE tickets. Join today! Assistant Wayne County Execu- ate revenue, even the games we’ve 313.833.7971 tive Turkia Mullin. Van Gogh had out for years. But it’s typically “After that uncertainty (over re- going to make about half the mon- location) before, they definitely ey it ever makes you within the look like they’re here to stay first 90 days after the product where they are now,” she said. launch,” Wardell said. “And … we “It’ll be part of some very exciting can (internally) develop and pub- This exhibition has been organized by the Cleveland lish a new game about every two changes out in Plymouth Town- Museum of Art. ship, especially by going ahead In Detroit, the exhibition is proudly sponsored by or two-and-a-half years.” Bank of America. Additional support has been with improvements.” provided by the Michigan Council for Arts and To help bridge those gaps in the Cultural Affairs and the City of Detroit. past, Stardock forged third-party The company had been in acquisition talks with a Redmond-based Amedeo Modigliani (Italian, 1884–1920). Portrait of a Woman (detail), c. 1917–18. Oil on canvas; 65 x 48.3 cm. The Cleveland Museum of Art, Gift of the Hanna Fund 1951.358. game publishing agreements with © The Cleveland Museum of Art. Vincent van Gogh (Dutch, 1853–90). The Poplars at Saint-Rémy (Les peupliers sur la Colline) (detail), 1889. Oil on fabric; 61.6 x 45.7 cm. The software company earlier this Cleveland Museum of Art, Bequest of Leonard C. Hanna Jr. 1958.32. © The Cleveland Museum of Art. Pierre Auguste Renoir (French, 1841–1919). Romaine Lacaux (detail), 1864. other firms. Oil on fabric; 81.3 x 65 cm. The Cleveland Museum of Art, Gift of the Hanna Fund 1942.1065. © The Cleveland Museum of Art. The company debuted real-time year and had pondered moving strategy game “Sins of a Solar Em- there when the deal was complete, pire” with Vancouver-based Iron- Wardell has said. clad Games Corp. in February and Last week he confirmed that expects to launch “Demigod” with deal was off the table due to lack of Redmond-based Gas Powered available financing. He would not Games next March. confirm whether Gas Powered “We still do want to publish Games was the target, and said third-party products, but we want talks could conceivably resume if to be in a position where we are financial markets improve. not as dependent on finding new Chad Halcom: (313) 446-6796, companies to negotiate with who [email protected] 20081208-NEWS--0026-NAT-CCI-CD_-- 12/5/2008 6:04 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS December 8, 2008 Roundtable targets: Troy Transit Center funding, MBT surcharge As companies grow, diversify, merge, acquire

and divest, the need for a service-focused labor and BY CHAD HALCOM construction projects. CRAIN’S DETROIT BUSINESS Seeley also urged the county to lead a push to eliminate the Michi- employment law ﬁrm with a national breadth and local Oakland County officials will con- gan Business Tax surcharge enact- sider in 2009 putting their political ed late last year. presence has never been more critical. That’s why Ogletree Deakins weight behind an end to the Michi- “Anything you tax more of, you gan Business Tax surcharge, new get less of,” he said. “And I think if helps you determine where you go now funding avenues for the Troy Tran- we don’t change you’re going to sit Center, and a community cam- see a lot less development on the paign to curb high school dropout and the best path to reach your future destination. One of the commercial side.” rates, as recommended by the Oak- The group’s transportation com- land County Business Roundtable. nation’s largest and most respected labor and employment ﬁrms, mittee reports that state House The organization of local busi- Transportation Committee Chair- ness leaders, co-chaired by AT&T man Rep. Hoon-Yung Hopgood, D- Ogletree Deakins has 33 locations and serves over half Michigan President Gail Torreano Romulus, has been reviewing pos- and Oakland Uni- sible funding tools to introduce as the Fortune 50. Learn more at www.ogletreedeakins.com versity President proposed legislation. Those tools Gary Russi, pre- could help in securing an addition- or call 1.866.287.2576. sented those al $3.45 million in funds still need- ideas and others ed for the Troy Transit Center, Ogletree Deakins. to Oakland which must be completed by 2010. Now. County Execu- These tools would include pri- tive L. Brooks vate investment infrastructure Patterson and funding, in which private in- his staff in its vestors can contribute capital to- Governor’s Place 2008 annual re- Torreano ward a public project for a possible 33 Bloomfield Hills Parkway port last week. financial return, or public-private Suite 120 “We will see tough times, and partnerships. Bloomfield Hills, MI 48304 we’ll find that (afterward) we’re “The (two funding) option(s) … more innovative, and maybe invest- 248.593.6400 if enabled by the Legislature, ing in ways we didn’t think of previ- would be viable funding options BLOOMFIELD HILLS ously,” Torreano told a crowd of 160 for the transit center,” the commit- or so attendees last week during a tee’s 2008 report states. breakfast meeting in Troy to pre- Proposals came from four com- sent the recommendations. mittees: Workforce and Education, Fred Seeley, chair of the eco- Transportation, Economic Devel- nomic development committee opment and Quality of Life. and president of Southfield-based Patterson and Deputy County commercial estate firm Ludwig & Executive Dennis Toffolo have Seeley Inc., argued that the county said the county adopts 80 percent should get behind proposed Senate or so of the roundtable’s recom- legislation in Lansing to expand mendations every year. the use of industrial development Chad Halcom: (313) 446-6796, revenue bonds for businesses with [email protected]

Kensington Community plans to expand into Lake Orion Troy-based megachurch Kensing- campuses and five national campus- ton Community Church plans to open es by 2020, according to its Web site. its fifth local campus in Lake Orion The church also plans to break in January, adding to other church ground some time next year on a extensions in Birmingham, 72,000-square-foot building with a Rochester and Clinton Township. 623-space parking lot on the south- Begin your own tradition. Located at Lake Orion High west corner of Dutton and Bald School, the newest campus is part of Mountain roads in Auburn Hills. Kensington’s plan to launch 12 area — Sherri Begin Welch

Annual Calendar Ref. 5146G 20081208-NEWS--0027-NAT-CCI-CD_-- 12/5/2008 6:38 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 27 Closing of Ecorse steel plant seen as a help to the market

BY RYAN BEENE economy and the lack of demand, CRAIN’S DETROIT BUSINESS and what this is going to do is remove some of the tons out of the Last week’s closure of U.S. Steel marketplace,” he said. “It was Corp.’s Great Lakes Works in Ecorse something that needed to be done.” might eventually help local steel Don Simon, CEO of Livonia- $23,000,000 $7,000,000 companies that have seen too based Contractors Steel Co., a steel Refinance/Working Capital Refinance/Working Capital much product for their market. service center, says the ripple ef- That facility mostly produced fect of the closure will be felt. steel coils used by “I’m not directly the automotive in- Metal processing services Fluid control devices designer affected by their provider and manufacturer dustry. The worst thing closure, other than But with car “ there’s a lot of jobs sales and produc- that could have being shut down, tion down to their and those people lowest levels in happened was to are customers of years, demand for mine,” he said. automotive steel continually churn His company Our clients deserve all the credit. has fallen and the provides services global economic it out ... when the like maintenance slowdown has dri- work on blast fur- ven down steel Discover why companies like SET Enterprises and Humphrey Products market was naces at mills for have made us the leading choice in asset-based finance. Whether you are prices. U.S. Steel and other a manufacturer, wholesaler, distributor or service company, we will work “From a steel already local companies. with you to understand your unique needs and to structure a total financial standpoint, from a 2009 CFO Outlook He says if U.S. Steel A Survey of Manufacturing Company CFOs solution that meets your business objectives. steel distributor inundated. is shut down, that standpoint, it’s a ” Find out what 600 CFOs expect in 2009 regarding the economy, revenue source of work is growth, financing requirements, M&A activity and more. Download the very good thing be- Jeff Jaye, Impact Steel Group shut off. free “2009 CFO Outlook” at www.bankofamerica.com/businesscapital33 cause (when) any In the long run, the closure of or call us toll free at 800.773.5338. market gets inundated with any U.S. Steel and other mills that product, it’s not a good thing and have recently cut capacity will prices start plummeting,” said Jeff BANK OF AMERICA BUSINESS CAPITAL help bring the market back in line, Jaye, CEO of Ferndale-based Im- Asset-based financing Treasury and risk management Global capital markets pact Steel Group, a flat-rolled steel Jaye says. “We’re expecting, come sometime distributor. Bank of America, N.A. is acting as Administrative Agent. Certain activities and services referred to in this document are provided by Banc of America Securities LLC, a Jaye says some steel companies in the first quarter, that we’re going subsidiary of Bank of America Corporation and an affiliate of Bank of America Business Capital. © 2008 Bank of America Corporation have seen their inventory lose much to see a lot of this excess material in of its value as steel prices have fall- the market get used up and pricing en in recent months. stabilize again,” Jaye said. He says while it’s never a good “The worst thing that could thing to see layoffs, shuttering the have happened was to continually U.S. Steel plant in Ecorse was the churn it out … when the market right thing to do for the market. was already inundated.” “Steel prices have dropped sig- Ryan Beene: (313) 446-0315, nificantly because of the poor [email protected]

Detroit College Promise has fiduciary T gm_`lae]k[Ydd^gj The Youth Development Commis- Detroit. sion in Detroit has agreed to serve The organization plans to expand l]f\]jkl]Yc Yf\dgZkl]j!& as fiduciary for the Detroit College the program as funds become avail- Promise until it is granted its own able. The scholarships will pay 65 nonprofit status. percent to 100 percent of tuition and Detroit College Promise is be- fees at a Michigan public college or ginning to collect donations at university, based on the number of www.detroitcollegepromise.org to- years the student has attended De- ward the four-year college scholar- troit Public Schools. The organization ships it’s initially offering to grad- has raised $50,000 to date. uates of Cody High School in — Sherri Begin Welch

CRAIN’S SEEKS M&A NOMINATIONS Involved in a merger, acquisition or category and can include physical expansion in 2008? plant expansions, new product You may be eligible for the lines, diversification of client second annual Crain’s M&A base and other similar Awards contest. activities that lead to job Crain’s Detroit Business and creation and/or economic the Detroit chapter of the growth. Two categories: Association for Corporate Investments of less than Growth will honor companies $50 million and $50 million and individuals in the following or more. categories: ■ Lifetime Achievement: Senior- ■ Best Deal of the Year: Under level executive who has been $100 million and $100 million or involved in significant transactions more. and has made a significant impact ■ Dealmaker of the Year: M&A on the community. experts, lenders, CPAs, Applications for the M&A awards Kl]YcYf\Klm^^]\DgZkl]j+1&1- consultants and attorneys, among can be found at @iejt\1ju)Øg`o\i_gj]no`mo\dgnop`_rdoceph]jgphk^m\]\i_c`m]^c``n`) others, are eligible. www.crainsdetroit.com/nominate. ■ Best Woman or Minority The deadline for entering is Jan. 9. Ljgqt *,0&*.1&0,*, Enterprise Deal. For more information, see ■ Best Expansions. This is a new chapters.acg.org/Detroit. YnYadYZd]YlhYjla[ahYlaf_dg[Ylagf^gjYdaeal]\lae]& 20081208-NEWS--0028-NAT-CCI-CD_-- 12/5/2008 6:19 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS December 8, 2008 Training: Plan in works Detroit 3: Groups rally to help ■ From Page 3 ■ From Page 1 ployers.” ment and chair of the commu- members and asking if they have rela- across the nation,” Carnrike said. Key bills setting up the pro- nity college association’s team tives in some of the Southern states Timothy Leuliette, CEO of gram are Senate Bill 1342, spon- to implement the legislation where members of Congress have been Rochester Hills-based auto supplier sored by Sen. Mark Jansen, R- once it’s law, said Oakland particularly critical of the bailout Dura Automotive Systems Inc., recently Gaines Township, and House hopes “to be able to engage with package,” said Ter- launched Engine of Democracy, a lobby- Bill 6185, sponsored by Rep. partners and get going the first ry Barclay, presi- ing group aimed at building public Richard Hammel, D-Flushing. year,” potentially serving two dent and CEO of De- support for an aid package. Joining Under the initiative, colleges or three companies at the start. troit-based Inforum, a Leuliette in forming the group is Jason would enter into agreements “We intend to be a leader in professional organi- Vines, who left his job with Com- with employers to establish this, in partnering with the eco- zation for business- puware as senior vice president for training projects for new jobs. nomic development communi- women. Compuware 2.0 last week. The jobs could be in any indus- ty to really manifest this pro- Inforum is asking Dearborn Mayor John O’Reilly Jr. try, but could not include posts gram,” Miller said. She said she those members to and the newly formed Mayors Automotive for which workers are being re- hopes that by midyear Oakland have their Southern Coalition will push for automaker aid called, replacement jobs, or any might be “vetting companies Barclay relatives contact Tuesday when the organization meets jobs that existed at the business and opportunity for this. That legislators there and with congressional leaders and mem- within one year prior to the may be an ambitious time express their support for the loans. bers of the Obama transition team. agreement. frame, but these are times that I Other efforts to support the industry Other cities in the coalition include The college-employer agree- think we need to be ambitious.” include: Lansing, Livonia, Sterling Heights, ment could include placing a Miller was a member of a Wayne County Executive Robert Warren, Wixom, Toledo, Shreveport, lien on the employer’s real and contingent of Michigan com- Ficano has spent $10,000 from his cam- La., and Arlington, Texas. personal business property as munity college officials who paign fund to buy radio time in South- Madison Heights-based security for the community col- went this spring to Iowa to ern states and in Washington, D.C., de- www.miusa.com is selling hockey-style lege’s obligations. learn more about its program. fending the automakers at some of the FREE PRESS jerseys that display support for the 6 Hansen said community col- According to the Iowa Depart- sources of criticism. million U.S. auto industry workers. leges could borrow from finan- ment of Economic Development, He’s working with the Detroit Region- TO CONGRESS Southeastern Michigan United cial institutions, borrow from the Iowa program has awarded al Chamber and Detroit Renaissance Inc. The Detroit Free Press ran a full Way agencies are using an e-mail cam- their own reserves, or bond in- more than $719 million since its (which bought a Washington Post ad front-page editorial in Friday’s paign to their affiliates in other states dividually or collectively. If an inception, for some 2,473 pro- Thursday supporting aid) on the Web edition — which was sent to to garner support for the plight of the employer goes bankrupt or jects creating 165,375 jobs. site americanautoindustryrocks.com, every member of Congress — domestic car companies. advocating passage of loans for can’t make its agreed-upon pay- Jansen said the Michigan which is soliciting money to pay for Patrick Jackson, manager of public the Detroit 3, which concluded: more radio spots in Tennessee, Alaba- policy for the national United Way for ment, it is the community col- program holds promise as em- “You can help them. And if you lege’s responsibility to fund the ployers move into new lines of ma and Kentucky. don’t, make no mistake: There America, is forwarding affiliates an e- debt, so colleges will be judi- business. Among the signers of a mission will be bleeding throughout the mail containing letters sent Thursday cious and thorough in perform- “I think it’s going to make us statement letter on the Web site are land.” to three key legislators from Michael ing due diligence before enter- more nimble, if you will, for Compuware Corp.’s Peter Karmanos, Brennan, president and CEO of United ing into agreements, he said. folks who are thinking about Quicken Loans/Rock Financial founder Way for Southeastern Michigan. Michigan’s program would expanding, getting into another Dan Gilbert, Ilitch Holdings Inc. President Christopher Il- Brennan’s letters highlight the stress an automotive be capped at $60 million annu- product line,” Jansen said. itch, Strategic Staffing Solutions President and CEO Cyn- collapse would put on health and human services. ally. Discussions are ongoing “It will allow the community thia Pasky and others. United Way of Washtenaw County and Livingston County about including $10 million colleges to do what they’re real- The chamber has gone into lobbying overdrive, COO United Way are working with the larger, Detroit-based within that cap for the MEDC to ly good at. And it gets the state Tami Carnrike said. The organization has tapped into its affiliate on the advocacy campaign. participate. out as the middle man. You’ve Automotive Jobs Action Coalition, which has 140,000 mem- The national United Way, as a matter of policy, is not One school that’s interested got the local folks who are mak- bers through 50 chambers in automotive industry-relat- taking a position on the bridge loans to the automakers. is Oakland Community College. ing the decision.” ed areas in 17 states, to get the word out (through its Crain’s reporter Sherri Begin Welch contributed to Sharon Miller, dean of eco- Amy Lane: (517) 371-5355, vote4biz.com site) about Detroit’s need for loans. this story. nomic and workforce develop- [email protected] “We really are trying to reach as many people we can Bill Shea: (313) 446-1626, [email protected]

Alcohol: Bill to ban direct shipments uncorks business concerns ■ From Page 1 with the Michigan Retailers Association and and out-of-state retailers from directly ship- the committee that would discuss the bill. abide by regulations that include package the Michigan Restaurant Association and oth- ping to consumers any kind of alcoholic Andrew Doerr, his chief of staff, said San- labeling and limits on amounts shipped. ers have concerns about the legislation that product — beer, wine and liquor — even if born “is hoping that we can get something Michigan enacted similar legislation in swept through the state House last week in a the delivery is only a few blocks away. done with the legislation before the end of 2005, creating a direct shipper license avail- 97-9 vote. Andy Deloney, the restaurant associa- the year,” but with the caveat that the com- able to both in-state and out-of-state wineries. Focus is now on the state Senate where, tion’s vice president of public affairs, said mission continues to work with those con- But Wozniak said the issue in Michigan with the brief session time remaining, the the House version “essentially makes it all cerned about catering to ensure such events goes beyond wine. Even though the current bill could go to a committee or directly to the but impossible” for restaurants that hold re- can continue, and not at a significantly in- court case centered on wine shipments, it Senate floor. tail beer and wine licenses to do catering creased cost. has implications for the shipping of beer The Michigan Beer and Wine Wholesalers Asso- that includes alcoholic beverages. He said Sanborn would also like to ad- and spirits, he said. The state is the whole- ciation is backing House Bill 6644. In a state- He said the association is working with dress gift-basket shipping, which also is af- saler of spirits, and “if a lot of sales were be- ment e-mailed to Crain’s on Friday, President the Michigan Liquor Control Commission and fected by the proposed ban, although the ing made through out-of-state retailers, that Michael Lashbrook said “we support regula- other interests to address the catering con- commission’s Wozniak said that’s a more would have, we think, a very dramatic effect tions that will help protect our ability to stop cerns in the Senate, “while also being mind- complicated issue. on state revenues,” he said. dangerous products from reaching con- ful that we’re running out of time in the leg- Michigan business interests aren’t the only The state made about $204 million in prof- sumers and alcohol from falling into the islative session. ones who have raised concerns with the bill. it on the sale of spirits in 2007. hands of minors, both of which are the dri- “We’re hopeful that we can come up with Free the Grapes, a Napa, Calif.-based na- Wozniak said it’s not unlikely that a fu- ving force behind HB 6644.” some language to address that,” Deloney said. tional grassroots coalition for wineries and ture lawsuit could be filed regarding Michi- The bill, sponsored by Reps. Barbara Far- Ken Wozniak, director of executive services consumers, has sent e-mails to its list of gan liquor shipping, because Michigan al- rah, D-Southgate, and Chris Ward, R- at the Liquor Control Commission, said the Michigan wine-loving individuals who in lows in-state but not out-of-state delivery. Brighton, would prohibit both in-state and commission is looking at ways to address turn sent about 240 faxes to state lawmak- Michigan’s liquor prices are significantly out-of-state retailers from direct shipping and some of the concerns raised about the bill. One ers, as of early last week. higher than those of other states. require all sales to go through the state’s ex- possibility is a catering permit that would ap- Executive director Jeremy Benson said “Our attorneys and the commission itself isting three-tier distribution network in ply to in-state and out-of-state businesses. direct shipping is “a way for people to sam- feels that we’ve got to deal with the issue for which alcohol products flow from producers Also being looked at is retaining the abili- ple products that may not be available in all alcohol products,” Wozniak said. to wholesalers and then to retailers. ty for Michigan businesses to continue to di- their market, in many cases, and be able to Joel Goldberg, editor and founder of Mich- The measure responds to an October fed- rect ship. One way to do that might be to lim- purchase them the way they want to pur- Wine, a Brighton-based consumer Web site on eral court ruling that found unconstitution- it the means of delivery for all shippers, chase them. And that’s what this ultimately Michigan wines, said Wozniak’s argument is al a Michigan law that bans out-of-state re- in-state and out-of-state. comes down to, and that’s choice.” “a red herring.” He said he is not aware of any tailer shipping of wine but permits in-state “It’s not that we’ve shut off all dialogue on He said that instead of banning all direct challenge to spirits laws on such a basis, and retailer shipping. those issues,” said Wozniak. “Hopefully by shipping, Michigan could remedy its prob- said Michigan could still require an out-of- The state has appealed the ruling and sees the time this gets to a committee meeting in lem by adopting model legislation that is a state retailer to go through the state. it as undermining Michigan’s ability to con- the Senate, we’ll have something worked basis for direct-shipping laws in other Amy Lane: (517) 371-5355, trol sales, but is seeking the legislation as a out, if it can be worked out at all.” states, involving both wineries and retail- [email protected] broader and more rapid remedy. Sen. Alan Sanborn, R-Richmond, would ers. Such a law would require shippers to Nathan Skid: (313) 446-1654, The legislation would prohibit in-state lead the bill on the Senate floor and chairs obtain a state license, pay sales taxes, and [email protected] 20081208-NEWS--0029-NAT-CCI-CD_-- 12/5/2008 5:41 PM Page 1

December 8, 2008 CRAIN’S DETROIT BUSINESS Page 29 Toolmaker: Works with suppliers to survive slow pay www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] The new system does cut into having trouble with borrowing. Gary Kimmen, president of the EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] profit margins, Landers says. For “We had a lending arrangement Global Tooling Alliance, a business MANAGING EDITOR Andy Chapelle, (313) 446- example, a job that may have 0402 or [email protected] Nobody wants to set up with a new bank, had a nice group of 16 local tool, die and mold ASSISTANT MANAGING EDITOR/FOCUS Jennette brought Ronart an 8 percent mar- “ credit line established with them, makers, said his organization has Smith, (313) 446-1622 or [email protected] BUSINESS LIVES EDITOR Michelle Darwish, (313) gin in the past may now bring 5 make a move but once this meltdown started, “had a few guys who have had jobs 446-1621 or [email protected] percent, with the other 3 percent they rescinded and pulled the offer canceled or put on hold until next COPY DESK CHIEF Gary Piatek, (313) 446-0357 right now. or [email protected] going to suppliers. back,” said Patrick Riley, presi- year. GRAPHICS EDITOR Nancy Clark, (313) 446-1608 “It’s for survival,” Landers said. ” dent of Romeo-based Exceptional “Nobody wants to make a move or [email protected] Gary Kimmen, COPY EDITOR Vic Doucette, (313) 446-0410 Without bank financing or pro- Mold & Engineering Inc. right now. (Automakers) don’t or [email protected] gressive customer payments, tak- Global Tooling Alliance DATA EDITOR Anne Marks, (313) 446-0418 or “So it kind of put us in a funk, want to spend any money, and un- [email protected] ing on a multimillion-dollar job is saves about $200,000 a month in op- and we’re on extension with our derstandably so, I think, until they WEB GENERAL MANAGER Alan Baker, (313) 446- impossible. 0416 or [email protected] erating costs. current lender, but now all the new find out about the loan.” WEB EDITOR Christine Lasek, (313) 446-0473, “You have to negotiate other op- [email protected] The long-term outcome for the lenders we’re talking to are saying, Kimmen says automotive orders portunities with suppliers or others WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) Detroit 3 still looms as a business ‘if it’s Ford, GM or Chrysler work, to member companies are down at 446-0403, [email protected] to help you fund that job or else you issue for Ronart, though. RESEARCH ASSISTANT Joanne Scharich, (313) until this (request for federal loans) least 30 percent to 40 percent com- 446-0419 cannot take that work,” he said. Landers said Ronart typically is resolved, you’re not going to be pared with last year, with some of EDITORIAL SUPPORT Anita Duncan, (313) This cash flow management sys- has one or two major die-making 446-0329 able to borrow.’ ” his members saying it’s the slowest NEWSROOM (313) 446-0329, FAX (313) 446- tem, combined with recent efforts jobs from each major OEM under- 1687 TIP LINE (313) 446-6766 Riley relies on borrowing, using time for business they’ve ever seen. to streamline operations, is keep- going at all times. REPORTERS his company receivables as collater- “What we have seen is a hold-off ing the company profitable. The “Right now we have nothing in- Robert Ankeny: Covers the city of Detroit, Wayne company reduced headcount from house from Chrysler, the rest of al, for about 85 percent of his work- on new programs — that is taking County government, and law. (313) 446-0404 or ing capital needs. He says he’s stable place as we speak,” Landers said. [email protected]. more than 180 in 2006 to about 30 our work is for Ford, and we know Ryan Beene: Covers auto suppliers, steel. (313) today and does more computer- GM is coming but it’s on hold,” he for the moment, but it’s because he “There’s nothing really moving 446-0315 or [email protected] Daniel Duggan: Covers real estate and hospitality. based design and testing of dies in- said. “If Chrysler doesn’t get it to- is solely working on jobs destined until they figure out what their (313) 446-0414 or [email protected] stead of a costly “tryout” phase of a gether, we could lose $8 million in for Toyota and Nissan. next step is.” Jay Greene: Covers health care, insurance and the environment. (313) 446-0325 or project that has high labor costs the upcoming year.” “If I don’t have that avenue, I’m Ryan Beene: (313) 446-0315, [email protected]. and scrap rates — all of which Ronart is not the only company dead in the water,” Riley said. [email protected] Chad Halcom: Covers education, non-automotive manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or [email protected]. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or [email protected]. Nancy Kaffer: Covers small business and retail. (313) 446-0412 or [email protected]. Mortgages: Blitz of refinancing may save year Bill Shea: Covers media, advertising and marketing, entertainment, the business of sports, ■ and transportation. (313) 446-1626 or From Page 1 [email protected]. Nathan Skid: Multimedia reporter. Also covers the “It’s been a challenging market this year, ual markets, so Michigan data was not available. gage and have equity in their homes. food industry. (313) 446-1654, [email protected]. without as many purchases as some would The low rates flowed into last week, staying “The people who are lucky enough to have Sherri Begin Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] like,” said Steven Brooks, executive vice presi- below 6 percent, and were reported at 5.6 per- jobs, kept their nose clean and didn’t get into a LANSING BUREAU dent of lending for Troy-based Flagstar Bank cent for a 30-year, fixed-rate mortgage on Fri- stupid loan program that put their house under- Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- (NYSE: FBC). “So when the brokers and loan of- day, according to Bankrate Inc. water will be taking advantage of this,” he said. 5355, FAX (517) 371-2492, [email protected]. or ficers saw an opportunity in the market, you With no certainty on how long rates will stay Siebert said Southeast Michigan’s refinanc- 115 W. Allegan, Suite 220, Lansing 48933. got a flurry of them working to get their bor- down, brokers are reaching out to every client to ing numbers are likely lower than other parts ADVERTISING rowers a lower rate.” pitch refinancing. ADVERTISING DIRECTOR Marla Downs, (313) of the country, given that many people here 446-6032 or [email protected] During the week ending Nov. 28, the national Brokers at Clinton Town- have no equity in their homes or took out loans SALES INQUIRIES: (313) 446-6052; FAX (313) average for 30-year, fixed-rate mortgages ship-based Cranbrook Loans, 393-0997 requiring no money down. ADVERTISING SALES Jeff Anderson, Terri dropped to 5.47 percent from 5.99 percent one who enjoyed a four-day week- The refinancing blitz has been largely people Engstrom, Matthew J. Langan, Tamara Rokowski, week before, according to a survey of mortgage end off for Thanksgiving in Cathy Ross, Dale Smolinski with 10 percent to 20 percent equity in their applications conducted by the New York-based past years, worked Friday WESTERN ACCOUNTS Ellen Mazen (Los Angeles) homes looking for another fixed-rate mortgage, (323) 370-2477 Mortgage Bankers Association. and Saturday, said President CLASSIFIED ACCOUNT EXECUTIVE Greg he said. Evangelista, 313-446-1655 The dip was caused by the Federal Reserve and CEO Michael Ayoub. That situation makes the broker’s job even MARKETING MANAGER Irma Clark Board’s announcement to pledge $500 billion for “The sales efforts are in- EVENTS MANAGER Nicole LaPointe harder, said Siebert, who will be president of the purchase of mortgage-backed debt and $100 creased, people are getting MARKETING PROJECTS MANAGER Jennifer Dunn billion for loans from Freddie Mac and Fannie out there, contacting every- the Michigan Mortgage Brokers Association in MARKETING ARTIST Sylvia Kolaski Ayoub 2009. He said the government needs to take ac- SALES SUPPORT Suzanne Janik, Andrea Mae. Increased demand for mortgage-backed se- one they can,” he said. Beckham, YahNica Crawford curities causes a drop in interest rates. At Southfield-based Capital Mortgage Funding, tion to help people refinance out of their ad- CIRCULATION Candice Yopp, Manager. Nationally, there was a 203.3 percent in- $35 million in loans were locked in for Michigan justable-rate mortgages or no-equity loans. PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, crease in refinancing applications for the week on the day before Thanksgiving, roughly 10 “We’re all still waiting for that golden goose (313) 446-0301 ending Nov. 28, compared to the prior week, ac- times the normal volume, said co-founder Harry for the people with no equity,” he said. “There CUSTOMER SERVICE cording to the Mortgage Bankers Association. Glanz. are a lot of people who need help, and they’re MAIN NUMBER: Call (888) 909-9111 or write not getting it right now.” [email protected] Overall, mortgage applications increased 112 His sales team has been contacting recent SUBSCRIPTIONS $59 one year, $98 two years. percent, the group reported. clients, looking for the certain group of people Daniel Duggan: (313) 446-0414, Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state The MBA survey does not single out individ- who have good credit, are in a fixed-rate mort- [email protected] rate for surface mail. Call (313) 446-0450 or (888) 909-9111. SINGLE COPIES: (888) 909-9111 or contact Karen Boykin, [email protected]. REPRINTS: Call (800) 494-9051, Ext. 144 , or write [email protected]. TO FIND A DATE A STORY WAS PUBLISHED: Films: (313) 446-0367 or e-mail [email protected]. Movie-makers building Michigan fund CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. ■ From Page 3 CHAIRMAN Keith E. Crain PRESIDENT Rance Crain screenwriters with top creatives to ing work for the movie business al- mates the incentives have led to SECRETARY Merrilee Crain produce quality material (which ready here. 2,000 new jobs this year, and that TREASURER Mary Kay Crain Executive Vice President/Operations can be made within our budget 71 “It’s very exciting news if (Genre) Hollywood financiers’ interest in William A. Morrow Group Vice President/Technology, range) at a fraction of the cost of Number of films approved can put something together. They’re the state is on the rise. Manufacturing, Circulation normal film development,” under the incentive legislation heavyweight names,” said Doug “You’re seeing this (financial) Robert C. Adams Vice President/Production & Manufacturing Richardson wrote in an e-mail to Trevethan, editor-in-chief of Michi- infrastructure start to take hold,” Dave Kamis Crain’s Detroit Business. gan Vue magazine, which covers the said Tony Wenson, chief operating Corporate Director/Circulation Patrick Sheposh The targeted films could be pro- state’s television, radio and film in- officer for the office. “It’s compa- G.D. Crain Jr. Founder (1885-1973) jects developed by others that need $430.6M dustries. “That will put a lot of peo- nies that are looking to finance Mrs. G.D. Crain Jr. Chairman (1911-1996) additional funding to get finished, Value of those deals ple to work in Michigan.” films, provide bonds, insurance EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) or they could be movies generated As of Thursday, the state had ap- companies.” 446-6000 within Genre’s own ranks. April, which reimburse a qualified proved 71 deals worth $430.6 million More initiatives similar to Cable address: TWX 248-221-5122 AUTNEW DET “We will have the latitude to project up to 42 percent of its pro- under the incentive legislation, and Genre’s fund are in the works, CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly except for a double issue the provide gap financing on projects duction costs within the state. if all are made and get their post- Wenson said. second week in August by Crain Communications we feel are a good financial risk, as That means, for example, a $10 production certificates, Michigan Efforts among some lawmakers Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional well as finance projects that we million movie approved for state will reimburse $162.4 million start- to cap the incentives, out of fear mailing offices. POSTMASTER: Send address incentives could get a $4.2 million changes to CRAIN’S DETROIT BUSINESS, Circulation have developed or acquired,” ing in 2009, said Terry Stanton, pub- that runaway production rebates Department, P.O. Box 07925, Detroit, MI 48207- Richardson said. check from the state treasury — lic information officer for the state could strain the state budget, re- 9732. GST # 136760444. Printed in U.S.A. sparking a gold-rush of startup Entire contents copyright 2008 by Crain Hollywood is smitten with treasury, which approves film in- main in committee. Communications Inc. All rights reserved. Michigan because of the media production and film infrastructure centive applications. Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any production incentives launched in and support companies, and creat- The Michigan Film Office esti- [email protected] manner without permission is strictly prohibited. 20081208-NEWS--0030-NAT-CCI-CD_-- 12/5/2008 7:02 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS December 8, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 29-DEC. 5

garnered eight. “The Joe” award, judged LTU, Altair offer by a panel of advertising in- Granholm dustry journalists (including Crain’s reporter Bill assistance Shea), was given to JWT Team Detroit for an online sets date for marketing campaign to pro- to displaced mote author Toby Barlow’s free-verse horror novel Sharp Teeth. workers Entries for the D Show budget order awards — for everything outhfield-based from traditional print and Lawrence Technologi- HONDA S cal University plans to Senate halt to bills Among the 455 rooms in broadcast ads to guerrilla marketing, cell-phone cam- offer grants for up to 50 per- heading down the the Westin Book Cadillac De- cent of tuition to 400 dis- WORLD DEBUT IN DETROIT A legislative train troit is one named the paigns and computer effects — must have been pro- placed workers or their The 2009 Honda Insight hybrid, to go on sale this spring, will track may be short-lived. George Jackson Suite. The children for education in make its world debut in January at the North American Senate Majority Leader room was named after the duced by a Detroit-based agency or client. emerging-sector areas. International Auto Show in Detroit. It is expected to sell Mike Bishop, R-Rochester, president of the Detroit Eco- LTU said it plans to ex- 100,000 units a year in North America. had said last Thursday that nomic Growth Corp. in honor Oakland Emerging Sectors pand its academic program- the Senate would hold off of his efforts on the $180 ming in life sciences, alter- tomakers and accept de- Clarke, D-Detroit, says the on votes until Gov. Jennifer million project. program slows down native energy and layed payments of bil- Michigan state pension Granholm’s upcoming execu- “I got a good laugh out of sustainability and to host lions of dollars to a union- fund should consider buy- tive order on budget cuts is that,” Jackson said. “It was a Recession worries and a tightened market for credit free networking receptions run health care trust to ing the Renaissance Center reviewed and adopted by real sur- and workshops to match do its part to help the from General Motors Corp. Senate Appropriations may be taking their toll on the prise, and displaced workers with struggling companies se- and then leasing it back to Committee. Late Friday, I’m hon- local business attraction ef- employment opportunities. cure government loans. GM, the AP reported. Granholm gave notice that ored.” forts, if the recent slow- LTU said it will offer He said the union also The Macomb County she would issue the order He down in Oakland County’s grants initially to the first will suspend the jobs Charter Commission elected this Wednesday. said he Emerging Sectors program is any indicator. 200 qualified undergradu- bank. Democrat Jacob Femminineo Prior to Granholm’s an- hasn’t ate and first 200 qualified Jr. to head its effort to draft nouncement, Bishop’s press had the In a new report, the coun- Also, Ford Motor Co. ty announced just one new graduate students who can said it needed access to $9 a new county charter, the secretary, Matt Marsden, chance to prove they were displaced. Detroit Free Press reported. said the Senate had been stay in business attraction deal billion in credit, but was- that had not been already Recipients will be expected n’t sure if it would need The city of Pontiac is seeing many “nonessential- Jackson the room to be full-time students un- again seeking bids for the type is- yet. “I announced through incen- the financing. It also tive programs through the til they earn their degree. plans to cut its supplier Pontiac Silverdome after sues plan to do that real soon, The university is hosting Michigan Economic Growth base of about 1,600 compa- prospective buyer H. Wal- flooding though.” informational sessions, Authority. nies by more than half. lace Parker refused to sign a over from The room is open to the with on-the-spot admission That deal was for Madi- General Motors Corp. contract for the property the general public as well, for a appointments Thursday. son Heights-based PMV said it will lay off about until environmental sur- House” price. The room, on the 23rd For more information, visit Technologies L.L.C. The com- 2,000 more factory workers, veys on it are finished, The and floor, has a rate of $750 per www.ltu.edu/recovery or pany could add up to 15 including 390 jobs in Orion Detroit News reported. they’re night. call (248) 204-4100. jobs within the next 18 Township, early in 2009, the Airlines using Detroit not cur- Also, Troy-based Altair En- months. Associated Press reported. Metropolitan Airport will rent pri- gineering is offering free Awards honor creative class Oakland County Execu- The state Senate OK’d have to pay an additional Granholm orities training courses in ad- tive L. Brooks Patterson four of eight House bills $12.8 million to balance the like the Detroit’s advertising and vanced, cross-industry soft- launched Emerging Sectors that pave the way for a $103 budget for the Wayne County state budget problem. creative world honored the ware and 90-day, renewable in 2004 and 2008 is still the million privately funded Airport Authority, the Detroit Administration officials best work from the past software licenses for local busiest year to date in num- light-rail transit loop on De- Free Press reported. The said Michigan has a $240 year at the second D Show unemployed engineers. ber of reported successes. troit’s Woodward Avenue. airlines already have paid million current-year budget awards Wednesday night. For more information, The slowdown in Emerging The legislation autho- $106 million. problem, although a federal Warren-based advertising visit www.altairhyper Sectors coincides roughly rizes a nonprofit company Former Detroit Pistons stimulus package under the agency Campbell-Ewald took works.com/pwi. Obama administration is home 19 awards, including with the beginning of the to run the 12-stop rail line, player Derrick Coleman and expected to result in addi- Best of Show for its integrat- financial market meltdown. permits the Michigan Depart- partner Walter Bender will tional revenue. ed wellness campaign for the ON THE MOVE ment of Transportation to set open the first Tim Hortons in up tax zones for the route Detroit, in the Millender Oakland, Calif.-based Kaiser BITS & PIECES Robert Aronson, CEO, Spend the night in Permanente health care con- Dan Lohrmann, chief in- and establishes an annual Center space once occupied Jewish Federation of Metro- George Jackson’s room sortium. formation security officer state appropriation of up to by Starbucks, Dec. 15. Team Detroit, the Dear- for the Michigan Department politan Detroit, has been $8 million by the 2010-11 Real estate sources say How do you thank a guy born-based advertising of Information Technology, named president of the budget year to fund the sys- Tim Hortons alsop is con- who was influential in get- coalition of five agencies was named one of Govern- Birthright Israel Foundation in tem. sidering opening in the for- ting your hotel off the formed primarily to handle ing magazine’s eight public New York effective Jan. 1, The other bills related to mer Starbucks space in the ground? Name a suite after Ford Motor Co. work, won 16 officials of the year in its but will remain with the the rail loop are expected to Buhl Building. November edition. be taken up this week. Fusion, the Detroit Re- him, of course. awards; and BBDO Detroit federation until a successor Christine Beatty, former gional Chamber’s young pro- is named. top aide to ex-Detroit May- fessionals and entrepre- John Leekley, senior or Kwame Kilpatrick, agreed neurs organization, is vice president-general to a 120-day jail sentence launching a survey to mea- counsel and assistant secre- beginning Jan. 5 for ob- sure how metro Detroit’s Small-business features focus on big issues tary of Masco Corp., has re- struction of justice for ly- young people view the retired effective Nov. 30, but ing under oath, the AP region. In just a couple of weeks, the year microscope last week in continues as a part-time ported. The results will be shared will end with the glorious holiday Washington, Small Talk blogger consultant into next year. The Royal Oak Daily Tri- at the 2009 Mackinac Policy season. It’s a time to remember Bob Smith reminds us of this: Also retiring: Vice Presi- bune has cut its print edi- Conference to create a quali- friends and family, and if you’re a What Congress is really looking for dent and Secretary Eugene tion to four days from six, ty of life agenda for the re- retailer, time to make a good is an updated business plan from Gargaro Jr. publishing on Wednesday, gion, said Christianne Sims, portion of your revenue in holiday the automakers. Vice President-Con- Thursday, Friday and Sun- director of Fusion. sales. Find out his take on last week’s troller William Anderson has day, the AP reported. The survey is open until But it’s also the end of the fourth hearings and what small-business been designated principal Catheline Ballbach, an quarter and time to face your taxes owners can learn from the Detroit Jan. 16 and can be found at ex-Detroiter who died last for 2008. What can you do now to 3’s experience on Wednesday. accounting officer. www.fusiondetroit.org. help yourself? year, has left $300,000 to the Both features will be posted at city to help maintain Belle This week in Small Talk, we’re www.crainsdetroit.com/smalltalk. OTHER NEWS OBITUARIES talking to experts in business taxes Isle, the AP reported. to get the answer to that question WEB WORLD Don’t forget to sign up for our United Auto Workers Macomb County Sher- Sylvia Brown, 90, co- and more. An exclusive story by Alan Baker thrice-monthly Small Talk e-mail President Ron Gettelfinger iff Mark Hackel may run for founder of the Children’s while you’re there. Crain’s reporter Nancy Kaffer will Web General Manager said last week the union governor in 2010, the De- Leukemia Foundation of be posted Wednesday. Count on Crain’s to keep small- is willing to change its troit Free Press reported. Michigan, died of a stroke While the Detroit 3 executives were under the business owners informed. contracts with U.S. au- State Sen. Hansen Nov. 30. DBpageAD.qxd 12/1/2008 2:55 PM Page 1 Join Our Team.

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