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Page 3 Bill doesn’t unite sides Path opened for road funds on Detroit River crossing Budget deal would yield match for federal money BUDGET HIGHLIGHTS Yankee Air Museum rises Gov. Jennifer Granholm and BY AMY LANE gins Oct. 1. fund, cuts at state welcome centers legislative leaders last week struck from ashes in Ypsilanti CAPITOL CORRESPONDENT As discussed late last week, but no closings, and use of so-called a fiscal 2011 budget agreement, nearly half of “toll credits,” said state Rep. Lee with many pieces still requiring LANSING — Michigan might the $84 million Gonzales, D-Flint, chairman of the yet dodge a road-funding bullet. legislative approval. Elements Health Care Extra would come House Appropriations Committee’s include: A budget agreement being final- from a bond of subcommittee on transportation. ized in the Capitol is designed to Ⅲ A state worker early retirement around $40 mil- The office of his Senate counter- package that also requires produce the $84 million that Michi- lion that the part on the MDOT budget — Sen. employee contributions for retiree gan needs to avoid leaving state would is- Bill Hardiman, R-Kentwood — con- health care costs. $475 million in federal highway sue and would firmed the details Friday but said Ⅲ Budget cuts of 3 percent in funds on the table in Washington. need to repay in the bond piece still could change. state departments. Without the funding, Michigan one year, ac- Kelly Bartlett, Hardiman’s leg- would have faced major cuts next Ⅲ A tax amnesty program waiving cording to indi- islative aide, said Hardiman has penalties for delinquent business year in road and bridge projects — Gonzales viduals working been “more wary of the bonding and individual taxes. and the jobs that go with them. on the Michigan Department of Trans- proposal and the fact that it’s The agreement could be acted on Ⅲ Funding for an $84 million state portation budget. something we have to pay back in match that Michigan needs to draw this week as lawmakers speed to Additional elements include a year,” and is exploring greater $475 million in federal highway Health care advertising approve bills enacting a new state $12 million from the state trans- funds. tailored for ROI, Page 11 budget for the fiscal year that be- portation economic development See Budget deal, Page 24

Crain’s List Largest Wayne County Project unfinished, employers, Page 16 Startup creates device ‘like a GPS’ for diabetic patients This Just In parties in court GlobalHue CEO takes on Hygieia asks FDA for sales OK Dearborn BY JAY GREENE effective way for patients to new role in two offices Judge’s order: Michigan Howard 12 CRAIN’S DETROIT BUSINESS manage diabetes. Don Coleman is taking So in 2008, Hodish and more direct control of Global- Construction Disputed Eran Bhashan was an engi- Bhashan formed Hygieia Inc., a Hue, the Southfield-based Tenny site neering doctoral student in startup medical device compa- multicultural advertising 2007 at the University of Michigan ny based at Spark Central, the agency he founded in 1988. starts Oct. 1 W. Village when he learned from UM en- Ann Arbor business incuba- Coleman, the company’s docrinologist Israel Hodish, tor, to develop an innovative CEO, has taken on the new BY DANIEL DUGGAN M.D., that most diabetic pa- glucose meter with a calcula- role of general manager at CRAIN’S DETROIT BUSINESS Parking tients fail to adequately treat tor for a brain. garages the Southfield and New York At the 2003 groundbreaking for and manage their disease, Called a Diabetes Insulin Railroad tracks offices. He assumes the office the redevelopment of a former Ja- Park leading to poorer health and Guidance System, the device oversight role that was previ- cobson’s store site in Dearborn, JEFF JOHNSTON/CDB higher health care costs. uses innovative software to an- ously that of Vice Chairman city officials saw the project as the Because blood-sugar levels alyze blood-sugar levels and Allen Pugh, who retains that future of the city. change regularly — and some- tell patients how much insulin title but is now CEO of the Now, as lawsuits, bankruptcies It’s becoming times dramatically — between they should give themselves sister companies that service and scathing public comments fly, “ physician office visits, based on body chemistry. the agency. the West Village Commons devel- common to see ... Bhashan and Hodish, both Bhashan, Hygieia’s CEO, GlobalHue shifted several opment represents yet another originally from Tel Aviv, other executives as part of conflict created by the region’s re- where cities took on a thought there must be a more See Hygieia, Page 25 the changes. cession. The agency won the entire A court has ordered construc- lot of risk and are Israel Hodish, M.D., (left) and Eran $50 million Jeep account tion to begin next month on two from Chrysler LLC last year Bhashan of Hygieia Inc. have high hopes midrise buildings planned in Dear- now stuck holding for their Diabetes Insulin Guidance System. and is using that victory as a born’s west downtown. springboard to seek more Meanwhile, the developers filed the bag. full-assignment work. Other bankruptcy for the business enti- ” clients include MGM Grand ties involved with the project to Robert Gibbs, Gibbs Planning Group Detroit, Verizon, Wal-Mart, U.S. cope with mounting court fines set of two parking decks with new Census Bureau and U.S. Navy and defaulted loans. tax revenue from the developments, And the city of Dearborn, which See This Just In, Page 2 is now stuck making payments on set up a deal to pay for a $12 million them out of the general fund. “It’s becoming common to see sit- uations like this where cities took on a lot of risk and are now stuck holding the bag,” said Robert Gibbs, director of Birmingham-based Gibbs Planning Group, which provides de- velopment consulting services across the country. NEWSPAPER See Project, Page 25 ALAN WARREN 20100913-NEWS--0002-NAT-CCI-CD_-- 9/10/2010 6:03 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 13, 2010

2008 with $300 million in state Affolter-Caine led the April Community Central Bank in Mt. THIS JUST IN The way it was: 2003 pension fund money. 2009 launch of the website Clemens, Fidelity Bank of Dearborn, — Tom Henderson interninmichigan.com, which First National Bank in Howell, Michi- ■ From Page 1 Throughout our 25th-anniversary sought to connect students with gan Commerce Bank in Ann Arbor, year, Crain’s will use this space Small-biz awards seek nominees 25,000 internship opportunities Oxford Bank, Paramount Bank in to look at interesting items from in the state by 2014. Farmington Hills and Peoples State multicultural accounts. past issues. Nominations for Michigan Cel- Thelma Castillo, executive vice Bank in Madison Heights. With an estimated $123.8 mil- ebrates Small Business awards president, will oversee the pro- Twelve of the 137 banks in the lion in 2008 revenue, the agency will open on Oct. 1. gram’s day-to-day operations un- state got zero ratings based on is the eighth-largest advertising The expec- The contest — founded by the til a replacement is found. data filed with federal regulators and marketing firm in metro De- “ U.S. Small Business Administration, The chamber is working with for the quarter that ended June troit, according to Crain’s annu- tations were the Small Business Association of the program’s grantors, the New 30, compared to 14 that got zero al Book of Lists. that we’d never Michigan, the Michigan Economic De- Economy Initiative and W.K. Kellogg stars the previous quarter. In 2007, GlobalHue began a velopment Corp., the Michigan Small Foundation, to determine a time- Twenty-six banks got five-star $4 million organizational restruc- go to a restaurant again. We’d Business & Technology Development line for a replacement, said Sandy ratings statewide, up from 25. turing that includes a 40,000- Center and the Edward Lowe Founda- Baruah, the chamber’s president Three metro Detroit banks got square-foot office in New York never buy a car again. We’d be tion — honors Michigan’s small and CEO. five stars, all repeats from last City’s financial district. Global- businesses in three broad cate- Affolter-Caine is seeking op- quarter — Auto Club Trust FSB of Hue has become a holding compa- glued to MSNBC and CNN. gories including Small Business portunities in higher education, Dearborn, First Michigan Bank of ny for four units aimed at African- ” Awards and Small Business she said. Troy and Shelby State Bank. American, Hispanic, Asian and Champion Awards. The Michigan — Dustin Walsh Bauer Financial evaluates cap- emerging youth markets. David Sowerby, 50 Companies To Watch, which ital-to-debt ratios, profit and loss Coleman founded the agency as Loomis, Sayles & Co., Birmingham recognizes fast-growing second- trends, delinquent loans and Don Coleman and Associates, an From an April 7, 2003, article stage companies across the state, 8 area banks rated with no stars charge-offs, historical data, liq- African-American agency. Acqui- about the local economy being soft is also part of the contest. Florida-based Bauer Financial uidity, community reinvestment sition of two other agencies led to but faring better than some To learn more about award cat- Inc. released its quarterly ratings ratings and market versus book the creation of GlobalHue in 2000. expected since the U.S. had gone egories or to sign up for a nomi- of the nation’s banks Friday, and value. — Bill Shea to war with Iraq in March. On Aug. 31, President Barack Obama nation alert, visit www.michigan the eight Southeast Michigan Bankers say the ratings are marked the end of U.S. combat celebrates.biz. There is no cost to banks getting the lowest rating of simplistic and not always a re- Lithium-ion battery developer operations in Iraq. apply, and companies may self- zero stars remained the same. flection of health. nominate. They were: Clarkston State Bank, — Tom Henderson Sakti3 wins new funding round of California and Farmington Awards will be presented April Sakti3 Inc., a University of Michi- Hills-based Beringea LLC, which 28 at a dinner in Lansing. gan spinoff developing lithium- announced in April they had in- — Nancy Kaffer CORRECTIONS ion batteries for electric vehicles, vested $7 million in the company. Ⅲ A story on Page 21 of the Aug. 30 edition incorrectly named the announced Friday it has received Beringea’s investment was from Hampton Inn Detroit Metro Airport as being behind on its loan and under a $4.2 million round of funding the $185 million Growth Capital Intern in Michigan director leaves contract to be sold. The Lexington Hotel, which previously was named from General Motors Ventures and Fund it co-manages with New Britany Affolter-Caine, director of Hampton Inn Detroit Metro Airport, until 2008, should have been Itochu Technology Ventures of York-based Credit Suisse. the Detroit Regional Chamber’s In- named instead. Japan. The Growth Capital Fund is tern in Michigan program, has Ⅲ A news brief and a headline published on Page 2 of the Sept. 6 edi- The two new investors join two part of the state’s InvestMichigan announced her resignation from tion contained an error in the name of a logistics company based in previous investors, Kosla Ventures program, which was founded in the post. Her last day is Friday. Romulus. The company’s name is W.F. Whelan Co. Contract Experience Three In Your Corner. Great Events Wednesday, Sept. 29 in Sept. Visit www.regonline.com/2010houseparty to register and to learn more about Detroit House Party and Design in Detroit

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September 13, 2010 CRAIN’S DETROIT BUSINESS Page 3 Stem cell Inside funding fight Bill doesn’t unite sides now key topic on Detroit River span for summit Oversight, limits on P3 agreements stir waters Court rulings cloud BY BILL SHEA Gilbert’s office began drafting CRAIN’S DETROIT BUSINESS revised legislation in July when Legislative it became obvious the previous RV rentals paying off at MIS, research projects Revised draft legislation made “ bill, approved by the House in public last week that would oversight is May, was a non-starter among Re- Page 20 BY TOM HENDERSON permit the Michigan Depart- publicans on his committee and CRAIN’S DETROIT BUSINESS ment of Transportation to en- important, in the Senate. Many expressed ter into a public-private worry the original bill gave Federal funding of embryonic partnership to build and but if it goes stem cell research has become a MDOT a dangerous amount of un- operate a new Detroit Riv- supervised ability to enter into Company index major focus of the upcoming World er bridge is getting mixed too far Stem Cell Summit in Detroit, follow- public-private partnerships, or P3 These organizations appear in this week’s Crain’s reviews. agreements, and create toll roads ing recent decisions by federal “The draft legislation is investors will Detroit Business: courts that have put about $75 mil- and bridges. an excellent point from B&D Cold Heading ...... 20 lion of near-term funding at risk not risk the Gilbert’s bill attempts to quell which to restart the con- those fears by limiting the P3 to Barbara Ann Karmanos Cancer Institute ...... 12 and left researchers in limbo. versation of public-private part- The sixth annual summit will be funds. DRIC. Body and Mind Fitness ...... 22 nerships and a new bridge to Others, such as Sen. Alan held Oct. 4-6 at the Detroit Marriott ” Burton-Katzman Development ...... 25 Canada,” said Sarah Hubbard, se- Cropsey, R-DeWitt, are staunch Renaissance Center. Sarah Hubbard, nior vice president of govern- advocates of Ambassador Bridge CareTech Solutions ...... 12 It is expected to draw some 1,200 Detroit Regional Chamber ment relations at the Detroit Re- Children’s Hospital of Michigan ...... 13 scientists, government officials owner Manuel “Matty” Moroun’s gional Chamber, which backs the plan to build a second span for his City Year Detroit ...... 8 and representatives from life sci- $5.3 billion Detroit River Internation- private partnership legislation — ence companies from more than 30 crossing without public funding CoachMeFit ...... 22 al Crossing project. “It’s clear Sen. MDOT’s preferred financial — a $1 billion project stalled by countries. (Jud) Gilbert aims to protect the arrangement to build and run the Communities in Schools of Detroit ...... 8 The summit’s agenda has been Canadian opposition and prefer- best interests of Michigan taxpay- bridge — to only the proposed Compuware ...... 12 revised to focus on stem cell re- ence for DRIC. ers through his approach.” new public span. DRIC’s backers are happy the Covenant House Michigan ...... 8 search and related policy issues, Gilbert, an Algonac Republi- Her worry with the new lan- legislation could see action this Detroit Housing Commission ...... 4 particularly the possible shut-off guage, however, is that MDOT can, is chairman of the state Sen- of federal funding and its ramifica- fall. Detroit Medical Center ...... 12 will be too regulated by Lansing. ate Transportation Committee “The supporters of the DRIC tions. “Legislative oversight is im- and his office drafted the revised Detroit Public Schools ...... 8 Agenda items focusing on em- are pleased that Sen. Gilbert has portant, but if it goes too far in- bill (HB 4961). He began circulat- Detroit Regional Chamber ...... 3 bryonic stem cell issues include: drafted a bill that just focuses on vestors will not risk the funds,” ing it last week, and it could see the DRIC project. Some of the oth- Diplomas Now ...... 8 Ⅲ A keynote address to open the revision before it’s eventually in- she said. “Political risk is real. er P3 issues were distracting, and EBuy Media ...... 20 conference Monday by U.S. Sen. Requiring final approval by the troduced in the committee for de- Carl Levin. this allows everyone to focus on Henry Ford Health System ...... 11 Ⅲ Legislature of the final agreement bate. moving the DRIC project for- The science keynote address will scare off investors. It has in No date for debate has been Gibbs Planning Group ...... 1 at 11 a.m. Monday by Sean Morri- ward,” wrote DRIC spokesman other states.” scheduled. Hygieia ...... 1 son, director of the University of Tom Shields, president of Lans- MDOT needs Lansing’s permis- The revised bill basically out- ing-based public relations and Kandu Capital ...... 9 Michigan’s Center for Stem Cell Bio- lines the creation of an authority sion to move forward on the lobbying firm Marketing Resource Lambert Edwards & Associates ...... 11 logy. $5.3 billion DRIC project, and the to oversee the construction and Marketing Resource Group ...... 3 See Stem cell, Page 24 revised bill would narrow public- operation of a new bridge. See Bridge, Page 24 Michigan Aerospace Foundation ...... 23 Michigan Department of Transportation ...... 1 Michigan Infrastructure & Transportation Assn. . . . 24 Michigan International Speedway ...... 20 Oakwood Healthcare ...... 12 Yankee Air Museum ready for takeoff O’Keefe & Associates ...... 9 Productions Plus-The Talent Shop ...... 4 “We have not been able to admit the public to our Skillman Foundation ...... 8 New home, new direction: Gala facilities since the building burned down in 2004,” St. John Providence Health System ...... 12 said Executive Director Randy Trinity Senior Living Communities ...... 9 Hotton. celebrates reopening after fire ETAILS University of Michigan School of Public Health . . . 12 D “This is a facility we can open Vanguard Health Systems ...... 13 BY SHERRI WELCH Gala and open ... for paid admissions to ... tell West Village Commons ...... 25 CRAIN’S DETROIT BUSINESS house: Find out our story about the Willow Run about tickets, Bomber Plant and airport, U.S. Westminster Homes ...... 25 Page 23 The Yankee Air Museum plans to reopen Oct. 9 and mobilization prior to World War William Beaumont Hospitals ...... 11 10 with a gala and open house at Willow Run Airport II ... and (to) experience where we COURTESY OF YANKEE AIR MUSEUM Yankee Air Museum ...... 3 in Ypsilanti, six years after a fire destroyed the his- want to go in the future.” YMCA of Metropolitan Detroit ...... 8 toric hangar that once housed it. The museum, founded in 1981 by a group In the midst of a multiyear ef- calling itself Yankee Air Force Inc., is tran- Youth Vision Solutions ...... 8 fort to raise $10 million to build a sitioning from a membership club to new home for the museum, a a director-driven formal museum, building on the east side of the with assistance from Ann Arbor- Department index airport came on the market late Nonprofit Enterprise at Work Inc based . BANKRUPTCIES ...... 24 last year. Over the past couple of years, the The museum acquired the museum has worked with the Pren- BUSINESS DIARY ...... 18 40,000-square-foot building from tice Co., based in Chicago, to develop a CALENDAR ...... 17 the Michigan Institute of Aviation long-term $45 million plan to construct a CAREERWORKS ...... 19 and Technology for $1.8 million in new home for the museum, a new hangar for its CLASSIFIED ADS ...... 20 Hotton December. historic flyable aircraft and a visitor center. KEITH CRAIN...... 6 It’s now moving its operations from Hangar 2 at The membership governance, however, was bog- Yankee Air Museum’s the airport — which recently was condemned — to new building (top) MARY KRAMER ...... 7 the new site. See Yankee, Page 23 and its B-17 bomber. OPINION ...... 6 OTHER VOICES ...... 6 Know the news when we do Keep up with local restaurant news PEOPLE ...... 19 THIS WEEK @ Follow us on Twitter Check out Nathan Skid's Table Talk RUMBLINGS ...... 26 @crainsdetroit blog, crainsdetroit.com/skid WWW.CRAINSDETROIT.COM STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 26 20100913-NEWS--0004-NAT-CCI-CD_-- 9/10/2010 4:56 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 13, 2010

StageTwo Strategies A weekly look at problem-solving by growing companies. PRODUCTIONS PLUS-THE TALENT SHOP Location: Bingham Farms “It was a difficult decision to Description: Talent and casting lose our reserves in such difficult agency economic times,” Caruso said. CEO: Margery Krevsky “But we knew the cash reserves Founded: 1981 wouldn’t be depleted for very Employees: 36 long.” Revenue: $20 million in 2009, Expert opinion: Brad Coulter, di- with $23 million projected for rector at Bloomfield Hills-based 2010. O’Keefe & Associates, deals with Business decision: During good lots of businesses that have to times, the Productions Plus team Krevsky Caruso choose between losing the safety lived below its means, hoarding net and growing the business. cash whenever possible. Shop, however, worked primarily “Before you put in money, you When the recession hit, the in film. have to ask yourself, ‘Can I afford company had a “war chest” to fall “When we evaluated the poten- to lose this money if this goes back on. tial business that (The Talent south?’ Too often, companies fly But in 2008, CEO Margery Shop) could bring in, it definitely by the seat of their pants,” he Krevsky was approached by The outweighed the risk because we said. Talent Shop, one of her biggest were only bringing over the rela- And it’s not just about the ini- competitors. The Bingham tionships and key players from tial cost, Coulter said. A business Farms-based firm was in the mar- that business,” Caruso said. owner must know how much is ket for a new owner. Productions Plus’ satellite of- needed to run the new endeavor. fices in Chicago and Los Angeles Solution: While hesitant to tap “Do I need working capital the safety net, “We figured that got a big boost with the larger loans or do I have enough money an acquisition would be more ad- staff and the Hollywood connec- to fund payroll and buying prod- vantageous for us, based on how tions. uct and everything else?” Coulter quickly we could fold that busi- And the new company, Produc- said. “Even if the (acquired) com- ness into ours,” said Sal Caruso, tions Plus-The Talent Shop, became pany is profitable, what’s it going executive vice president and the largest Screen Actors Guild- to cost to support it?” CFO. certified talent agency in Michi- Whether a business uses its With extra cash on hand, Pro- gan. own money or the bank’s money, ductions Plus was able to com- It would’ve taken years to get it still has bills to pay. plete the 2009 purchase without what Productions Plus received, bank financing. had it not bought The Talent “Either way, they’re at risk,” Risks and considerations: Before Shop, Caruso said. Coulter said. “You might be in- the acquisition, Productions Plus “The money and the time that curring a little more risk by using mainly handled automotive prod- would’ve been invested would’ve the bank’s money versus your uct demonstration, event and cos- far outweighed what we paid for own.” metics marketing. The Talent the acquisition,” he said. — Shawn Wright If your company has recently made a tough business decision, contact Jennette Smith, assistant managing editor/Focus, at [email protected]. For more news and information, visit crainsdetroit.com/getemail to re- ceive Crain’s twice-monthly e-mail dedicated to growing companies. Housing commission’s independence delayed, still on track, says director BY NANCY KAFFER ment Program and its Public CRAIN’S DETROIT BUSINESS Housing Assessment System We had to get new weren’t meeting required metrics. The completion of a review that “ Jones said his team has sub- could release the Detroit Housing members mitted the agency’s new metrics Commission from the U.S. Depart- to HUD and is awaiting the com- ment of Housing and Urban Develop- and had to pletion of a review that will de- ment’s “troubled” list has been termine if it has improved suffi- pushed back to January 2011. get Mayor ciently to leave the troubled list. Self-Employed? Eugene Jones, executive direc- During Jones’ tenure, the tor of the commission since 2008, Dave Bing housing commission’s opera- Affordable Insurance had hoped the panel would be free tions and management have im- of federal oversight this summer, to bless proved, according to officials in but he said two resignations from them. HUD’s Washington, D.C., head- the commission’s advisory board ” quarters. have slowed the process. Eugene Jones, Most notably, Jones has pushed Life “We had advisory committee Detroit Housing Commission progress at the former Herman members we had trained, we had a Gardens housing project, a rede- Health couple resign, and we had to get housing commission — which has velopment now renamed Garden- new members and had to get May- an annual operating budget of view Estates. Retirement or Dave Bing to bless them,” Jones roughly $71 million — was taken The first two phases of construc- said. over by HUD in 2005. tion at the site — mixed subsidized Long-Term Care By January, he said, the new Numerous federal audits and market-rate housing units — commission board members will showed the commission had inap- are complete, and for-sale proper- be fully trained. propriately spent millions in fed- ties are next on the agenda. All (800) 987-0290 Having properly trained em- eral funds, that city leadership un- units are full, and there’s a waiting ployees and advisory board mem- der then-Mayor Kwame Kilpatrick list, Jones said. bers, Jones has said, is essential to wasn’t able to properly manage the Most recently, Jones said, the Zayti Agency the housing commission’s future. department, and that Kilpatrick commission is preparing to break If it’s released from federal con- had made appointments to the ground at Cornerstone Estates, an IIS000320 trol, the commission must have commission without regard to extension of the Woodbridge Es- the right personnel and oversight ability or qualification. tates project. Call your local Insphere office for a FREE quote today! to remain independent. In addition, the department’s Nancy Kaffer: (313) 446-0412, Mismanaged for decades, the Section 8 Management Assess- [email protected] DBpageAD.qxd 9/7/2010 10:21 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS September 13, 2010 OPINION OTHER VOICES Outgoing leaders can Covering autism saves kids, money Some 15,000 Michigan make that change, as 23 Behavioral, occupational, physi- children have autism, but other states already have cal and speech therapies can help only about 20 percent of done. nearly all children with autism, but them receive treatment It’s estimated that if they can cost as much as $50,000 an- still take bold action because Michigan health Michigan insurers provid- nually — far beyond the financial insurers aren’t required ed autism coverage, state reach of most Michigan families. ere’s an interesting scenario: Michigan’s top three po- to cover it. taxpayers would save $14 That’s why insurance coverage Like me, most people in billion in lifetime costs for is needed. With treatment, nearly litical leaders — governor, House speaker and Senate Michigan are probably the current population of half of all children receiving early, H majority leader — will all leave office Dec. 31, 2010. shocked by that — which kids with autism. appropriate treatment experience Could they accomplish in the next 15 weeks what partisan is why DTE Energy Co. Public hearings are un- improvements in functioning and wrangling prevented over the past eight years? voluntarily offers plans Anthony Earley der way across the state to IQ. That in turn saves money for Michigan voters have already spoken: They want change, with autism coverage to our 10,000 consider how to ease the crushing taxpayers, who otherwise would employees. financial and emotional burden have to foot the bill for the lifetime and they’re sick of partisanship. We could argue that it’s simply faced by Michigan families deal- costs of caring for people with un- So, we issue the challenge to Gov. Jennifer Granholm, the right thing to do, but it also ing with autism. The hearings are treated autism. House Speaker Andy Dillon and Senate Majority Leader Mike makes good economic sense. If our a bipartisan effort being led by Michigan lawmakers need to act Bishop: Dare to be great. employees can get early, medically Sens. Randy Richardville, R-Mon- on this issue, as a growing number The budget agreement announced last week has no tax in- proven treatments for their chil- roe, and Tupac Hunter, D-Detroit. of companies with self-funded in- dren with autism, the complex neu- They have been held in Detroit, surance plans already have, in- creases, amid a 3 percent across-the-board budget cut and an ear- robiological condition is much bet- Ypsilanti and Grand Rapids, and cluding Microsoft Corp., The ly retirement package for state workers that the Detroit Region- ter controlled. When that happens, will soon be scheduled in Lansing. Home Depot, Eli Lilly and Co. and al Chamber and other business groups have endorsed. That DTE benefits because our employ- Autism impairs a child’s ability Time Warner Inc., as well as insti- package will also require workers to make contributions to help ees are more likely to be at work to communicate, learn and relate to tutions such as Ohio State Univer- pay for retiree health care costs, phased in over five years. and more likely to be fully produc- others. It is the fastest-growing de- sity, the University of Minnesota tive due to reduced stress at home. velopmental disability in the coun- and the Mayo Clinic. Also, as Amy Lane reports on Page 1, officials are near to find- The human benefits that come try, affecting one in every 110 chil- To be financially viable, govern- ing a way to cough up $84 million as a state match for nearly $500 with autism treatment cannot be dren, according to the U.S. Centers ment and business alike must million in federal highway funds. There is also a tax amnesty pro- overstated, but the economic bene- for Disease Control and Prevention. make prudent investments to keep posal and other elements to produce revenue and savings. fits seal the case for reforming Boys are four times more likely costs down. Reforming Michigan’s All of those proposals are a great start. Michigan’s insurance law to cover than girls to have autism. More insurance law to cover autism is autism. That’s why I’m among the children will be diagnosed with just such an investment. You wonder why it couldn’t have happened sooner, but at growing group of Michigan resi- autism this year than with AIDS, Anthony Earley is chairman and least it should be ready for the start of the Oct. 1 budget year. dents urging state lawmakers to diabetes and cancer combined. CEO of DTE Energy Co. What can these elected leaders do for an encore? Traffic-tax proposal a good idea Count on Oakland County’s L. Brooks Patterson to offer a TALK ON THE WEB pragmatic response to a business calamity. Patterson proposed last week legislation to reduce proper- From www.crainsdetroit.com entry fee. I ate less and bought less ty taxes up to 50 percent for businesses affected by a construc- Re: $16.2M diabetes grant Reader responses to stories and as a result of the unexpected costs. tion project that lasts more than three months in its first year. As someone who works in pub- blogs that appeared on Crain’s lic-sector health care, I think this MsSunshine Many businesses, particularly retailers, know the pain of Web site. Comments may be grant will go a long way in pre- summer road construction. venting diabetes within the re- edited for length and clarity. Re: Chelios takes job with Wings This year, the pain has been particularly acute on major gion. It is also great to see that this Glad to see he will stay with the state thoroughfares: Southfield Road south of I-94 in Allen grant will help foster collaboration You can bet this isn’t an isolated Red Wings. Great guy. Park in Wayne County and a 16-mile stretch of Telegraph and sharing of information among oth- incident. The current and former Car Nut Road, from the city of Southfield through Bloomfield Town- erwise competing hospitals. school board members, the former F. Masha Olaniran ship in Oakland County. school superintendents and any Re: Where have moderates gone? other adult who aided and abetted Under which tree have you been Traffic crawls, motorists avoid the congestion and the ef- the theft of an education from sev- Re: Four to face charges sleeping, Rip Van Crain? Haven’t fect on businesses is compounded because so few median eral generations of DPS students in DPS embezzlement case you heard of the Party of “No”? crossovers are available. should be put behind bars for a seri- (Those four) should be proud of criticatlarge ously long time. Business owners have complained of cash registers ringing their education. After all, they jg48386 in 20 percent to 50 percent lower sales since construction began. learned that it was profitable to Re: Ferguson felony charges Detroit Regional Chamber CEO Sandy Baruah and state steal from the disempowered. … It Re: Arts Beats & Eats in Royal Oak No one is surprised about this Senate Majority Leader Mike Bishop back the Oakland County wasn’t enough to have a job and/or indictment. It is but another full- a position of authority — they had My excitement (over the move) executive’s plan. Such a bill would help businesses across the employment indictment for the lo- to pad their pockets, too. quickly ended with the excessive region and state. It’s a good idea. Timothy Dinan $15 local parking fees and the $3 See Talk, Page 7 KEITH CRAIN: Mayor’s huge plan needs business support Last week, Mayor Dave Bing an- If this is successful, it There can be a ratio- ment for a new plant or other pro- risks it may face for speaking up. nounced a revolutionary plan for could become the model nal plan to redevelop ject. The opportunities the mayor is restructuring the city of Detroit. for the entire nation. much of the city and, Trying to serve the citizens with discussing are dramatic. But they He’s looking for residents to par- There are plenty of ur- with some redistribu- water, electricity — let alone police will take a long time and create ticipate in several town hall meet- ban cities that need to tion of population, end and fire protection — is almost im- lots of anger and controversy be- ings. At best, those meetings are go through the same up with a city far more possible when people, homes and fore they’re finished. going to be difficult. At worst, they process Detroit is begin- viable that it is today, businesses are scattered randomly To do nothing would lead the will deteriorate into chaos. ning. with opportunities for over 140 square miles.Mayor Bing city into further decay. That is But he is looking for public in- It simply doesn’t business development is embarking on a historic and im- simply not an option. put. We’ll see what happens. make sense to have so and residential develop- portant mission. It is incumbent on I hope the discussions the mayor The implications of what he is much vacant land and ment as well. the business community to stand plans remain orderly and thought- discussing have tremendous im- so many abandoned It is difficult, perhaps up and support his efforts. I have ful. We need input from voters and pact on not only the citizens of De- homes and factories. It impossible, to try to put been quite disappointed in the lack investors. troit but the residents of the entire is impossible to serve the residents together any sort of land packages of business support for the mayor’s It’s a perilous journey he has be- region. and the businesses when they are for business or industrial use to- endeavors. gun. But it is a journey that must The business community will be so scattered throughout the com- day. It’s impossible to locate own- The business community cannot be made. The alternatives are not impacted greatly, as well. munity. ers to secure land for develop- remain silent, regardless of any acceptable. 20100913-NEWS--0007-NAT-CCI-CD_-- 9/10/2010 4:52 PM Page 1

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Biz could help ease DSO contract discord

Come October, I hope I’ll be sit- $30 million), to balance debt service on the Or- normal,” says it now connects Recently, Eastern Michigan Uni- ting in my usual season seat on the the books. chestra Hall expansion. fundraising with marketing under versity — known for its labor dis- aisle at Orchestra Hall, watching With the economic Musicians argue that Executive Vice President Paul putes and faculty strikes — settled a Detroit Symphony Orchestra mu- meltdown, the DSO lost management hasn’t Hogle, who came to the DSO this new contract that was calibrated to sicians perform on stage — and not more than 20 percent in done a good job of rais- year from Atlanta. But cultivating reward faculty if EMU reached spe- as buskers on a picket line. ticket sales and ing money, pointing to donors takes time. cific goals. That was remarkable, Contract negotiations between $2.5 million a year in four development di- How would you save the orches- given EMU’s labor history. the orchestra and its musicians government and corpo- rectors in four years tra? Let’s hope the DSO and its musi- are stalled. And rancorous. rate gifts and grants. It and a decline in the What about gain-sharing? Why cians can reach a similar Musicians have offered to take a also lost handsome fi- donor base. shouldn’t orchestra members be “a-chord.” pay cut of 22 percent in the first nancial returns on its “How can you have a part of the pitch to donors? year but get some of that back in lat- invested endowment long-term relationship What if 85 new donor companies Mary Kramer is publisher of er years. Management wants to cut money — returns that with donors with that “adopted” a DSO musician, chip- Crain's Detroit Business. Catch her more over three years, halt the no- hit as high as 17 percent turnover?” asked Haden ping in $5,000 to $10,000 apiece to take on business news at 6:10 a.m. tion of 52-week compensation (in- in Anne Parsons’ seven-year McKay, a musician spokesman and bridge the economic gap? And Mondays on the Paul W. Smith show cluding nine weeks of vacation), tenure as CEO. Those losses hob- cellist of 27 years with the orchestra. what if the musician in turn per- on WJR AM 760 and in her blog at change benefits (including a switch bled the plans hatched in 2000 to Management, which says its formed at a company, in a lunch- www.crainsdetroit.com/kramer. to defined contribution pensions) use investment gains to pay the musicians must adapt to “the new room or holiday potluck? E-mail her at [email protected]. and adopt new job descriptions. The orchestra’s business model collapsed with the economy. Its op- erating loss for the year that ended Aug. 31 is $6.5 million. And debt service on construction of “The Max” addition is on top of that. So it’s taking money from its unre- stricted endowment, now $21 mil- lion (and formerly more than

TALK CONTINUED ■ From Page 6 cal criminal defense bar. The follow- ing civil and forfeiture proceedings should be equally interesting. Timothy Dinan

Re: WVMV FM 98.7 to switch formats I always looked forward to get- ting ready for work listening to my favorite songs, and now I have nothing that even compares to this station. Very shocked

CELEBRATE THE D AND DESIGN The popular event that celebrates Detroit and offers a chance to experience a night in the D — the Crain’s Detroit House Party — is back for its fifth act. Plus, this year’s party features a Detroit design show. The Sept. 29 event, planned in conjunction with Crain’s recent “Living and investing in the D” supplement, offers attendees the opportunity to visit one of 26 lofts, apartments, condos and historic We’ve multiplied our doctors and hospitals. homes in Detroit for cocktails and a tour, followed by an afterglow at the College for Creative Studies’ A. We’ve subtracted the referrals for specialists. Alfred Taubman Center for Design Education. The afterglow includes cocktails, With HAP, your employees will have access to over 18,000 area doctors and their strolling dinner and “Design in Detroit,” a first-time show featuring choice of the leading hospitals. Plus access to a range of specialists—most without furniture and fine art made by a mix of metro Detroit-based referrals—preventive care, personalized wellness programs, and award-winning designers, including established shops and up-and-comers. customer service. The right plan will also help you control costs. Isn’t it time you The presenting sponsor is the Michigan State Housing took another look at HAP? Contact your agent or call HAP at 800-HAP-PLUS today. Development Authority. Cocktail parties will run 5-6:30 p.m., and the afterglow will run 7-10 p.m. Tickets are $50 a person and include a one-year Improving health. Enhancing lives. subscription to Crain’s. Tickets for the afterglow only are $45. hap.org For more information or to register, go to crainsdetroit.com/events. 20100913-NEWS--0008-NAT-CCI-CD_-- 9/10/2010 4:58 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS September 13, 2010 Nonprofits launch efforts to reach high-risk students

BY SHERRI WELCH nical assistance fund administered City Year and Communities in CRAIN’S DETROIT BUSINESS by Ann Arbor-based think tank Schools have been working in This is not just business. ... Michigan Future Inc. schools for years. City Year pro- Communities in Schools of Detroit “ In August, the U.S. Department of vides year-round in-class tutoring and City Year Detroit are working We are in business to help Education awarded Diplomas Now a and afterschool programming. with Baltimore-based Johns Hop- $30 million grant to open 60 middle Communities in Schools works kins University to open a new Detroit kids. schools and high schools in 14 dis- with parents and staff on whatever Public Schools high school next fall, ” tricts around the U.S., including De- else it takes to make students suc- based on a model its affiliates have Stan Childress, Covenant House Michigan troit. That followed a $6 million cessful, from health centers to used in schools in other low-per- grant from the PepsiCo Foundation. playgrounds to social workers. forming areas of the country. lack of shoes, food, school supplies, young people in high-risk environ- With a curriculum shaped by But Communities in Schools, City The new school will follow work health/social issues or conflicts at ments where they are surrounded Johns Hopkins in place, the three Year and Johns Hopkins coming to- started by the collaborative Diplo- home, said Communities in by so many problems. … But if organizations meet regularly to gether “allows us to go to the next mas Now this year at Bow and Schools CEO Charlie Anderson. those needs aren’t taken care of, discuss the highest-risk students level, more powerfully,” said Penny Emerson schools. “In high-poverty districts, they can’t focus on education.” so they can succeed in school and Bailer, executive director of Com- The idea is to help solve prob- 50 percent or more of the students The collaborative is among four avoid three drop-out indicators: munities in Schools. lems that get in the way of learn- are high-need,” he said. finalists in line for a grant through low attendance, poor behavior, Seeing the value of wrap-around ing for at-risk students, such as “It is expensive to deal with the $13 million school startup/tech- and failure in English or math. services to students, other non- profits are stepping up their in- volvement in Detroit education. Covenant House Michigan recently formed a nonprofit charter manage- ment company, Youth Vision Solu- tions, to oversee about 350 students at each of its three Detroit charter high schools for high school dropouts and at-risk youths. When it looked at its poor reten- tion rates and talked with stu- dents, Covenant House realized the computer-aided model that Akron-based White Hat Manage- ment LLC was using at the schools offered little or no opportunity to provide extra services to students who needed them, said Superin- tendent of Schools Stan Childress. Youth Vision still uses a com- puter-aided lesson model, but it is flexible enough to allow teachers to give students extra help when they need it, Childress said. As a nonprofit, Youth Vision can reinvest any profits into the schools, starting this year with pay increases to teachers and adminis- trators of 7 percent to 10 percent. “This is not just business. … We are in business to help kids,” Chil- dress said. After managing the Detroit Service Learning Academy for 10 years before it began operating independent of its charter in 2006, YMCA of Metropol- itan Detroit this year opened a char- ter school on Detroit’s far west side. Detroit Leadership Academy, which opened last week with 170 students in K-5, is the first of “a constellation” of new charter schools YMCA has planned for De- troit over the next few years, said Scott Landry, executive vice presi- dent for strategic development. “These children need an incred- ibly holistic support system,” he said. “The school is certainly the center of it, but they also need af- ter-school programs and support services at almost every level.” The low-profit, limited liability company YMCA formed to manage the schools — YMCA Educational Ser- vices — operates at 3 percent of per- student state aid to run the school, versus 10 percent for the average for-profit operator, Childress said. Nonprofits are trying to fix prob- lems that come out of failing schools, like poor reading scores, behavioral problems, poor social- ization and poor economic condi- tions, said Tonya Allen, vice presi- dent of program at the Detroit-based Skillman Foundation. “The mission of many nonprof- its is very much in alignment with the mission of public education,” she said. “If we use money to pre- vent a problem, it’s a lot cheaper and a lot more cost-effective.” Sherri Welch: (313) 446-1694, [email protected] 20100913-NEWS--0009-NAT-CCI-CD_-- 9/9/2010 4:46 PM Page 1

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 9 Cousins branch out from family biz, acquire senior living facilities

BY JAY GREENE the five senior centers from bank- out a bank loan to purchase a por- growing slowly and investing in re- chance of success than indepen- CRAIN’S DETROIT BUSINESS rupt Sunwest Management in tion of the $4.5 million cost of the In- cently acquired properties to make dent facilities. Salem, Ore., a company that grew diana properties, Dubin said. them more appealing makes sense. “Systems will have a leg up in at- Bradley Dubin, director of ac- to 350 senior centers in 10 years. At Trinity Senior Living Communities “We are interested in extending tracting new patients,” he said. “It is quisitions and co-owner of Birm- “Sunwest literally went on buy- in Livonia, Kelly Gasior, vice presi- Trinity’s health network and hav- almost like a feeder system, where ingham-based Kandu Capital LLC, ing and were paying ridiculous dent of planning, marketing and ing assisted living near our hospi- you have (people) steering them to- wanted to do something different prices,” Dubin said. “They were public relations, said the 21 centers tals (in Oakland, Macomb and ward the assisted-living center.” with his life than his grandfather, over-leveraged, and then the credit Trinity operates in Southeast Washtenaw counties).” Kandu, which also operates satel- father and uncle did. markets got tight and the market Michigan have been upgrading Dubin said Kandu also is adopt- lite offices in Chicago and New All of them were in the nursing collapsed.” steadily over the past several years. ing a network strategy but without York, employs nine people in its home business for more than 40 For the five senior centers, Kan- Trinity Senior Living is part of hospitals and physician groups. Birmingham office and about 1,400 years. du paid $35,000 per unit, which is Novi-based Trinity Health, which op- “We see seniors moving from in- at the five centers, Dubin said. Three years significantly below replacement erates 12 hospitals in Michigan dependent living to assisted living “We probably will add people in ago, Dubin and cost of about $100,000, Dubin said. and 45 nationally. and having an Alzheimer’s-care fa- the next 12 months as we stabilize cousins Tony All the properties have positive “We are primed for growth and cility nearby to provide a continu- our operations,” Dubin said. “After and Scott Kantor cash flow. Some need capital im- we are trying to be ready for it, but um of care,” Dubin said. that point we plan to start aggres- decided to tap provements, he said. at the same time we are trying not Boudreau said health care orga- sively looking for acquisitions.” family resources Kandu paid cash for the South to overbuild,” Gasior said. nizations that take a networking Jay Greene: (313) 446-0325, and start acquir- Carolina and Ohio facilities. It took Gasior said Kandu’s strategy of approach stand a much better [email protected] ing independent- and assisted-liv- ing facilities, as Dubin well as care cen- ters for those with Alzheimer’s and dementia. Since January, Kandu has ac- quired five senior housing facilities in Indiana, Ohio and South Caroli- na with 306 total units for $10.75 mil- lion. “There is a shift toward assist- ed living from skilled nursing care,” Dubin said. “It is more mod- ern and less-expensive approach than skilled nursing care.” Experts predict a boom in the se- nior housing industry because the number of people age 65 and older will more than double to 87 million by 2030 from about 40 million to- day, according to the U.S. Census Bureau. Southeast Michigan’s popula- tion over age 65 also is expected to nearly double to 1.1 million, or 25 percent of the population, from 616,000, or 14 percent. “We are looking very hard for deals in Michigan, but no deals have presented themselves yet,” said Dubin, 34. “Because we use our own money, we are very selective. We are not into development. We are management and acquisition.” But another reason Kandu has purchased facilities outside of Michigan is that some states, in- cluding Indiana and Ohio, subsi- dize assisted-living care for people if they run out of money and quali- fy for Medicaid. Prices for residents at assisted- living facilities can range from $2,000 to $3,000 per month, Dubin said. Skilled-nursing homes can range from $5,000 to $8,000 per month. About 70 percent of nursing home residents are on Medicaid. “Most states, like Michigan, are private pay (for assisted living centers),” Dubin said. “Michigan doesn’t have Medicaid funding rules that helps to keep census and occupancy up.” Mike Boudreau, director of transactional financial consulting with Bloomfield Hills-based O’Keefe and Associates, said occu- pancy rates for senior living facili- ties have been flat the past 18 months because of the downturn in the economy and housing market. “When people retire, they sell their homes, tap into the equity and use cash to fund living in the centers,” Boudreau said. “With the real estate market down, equity has dried up and slowed new cus- tomers in senior living centers.” Boudreau said companies like Kandu are finding bargains as some companies have overbuilt and find themselves in financial trouble. For example, Kandu purchased DBpageAD.qxd 2/17/2010 12:32 PM Page 1 20100913-NEWS--0011-NAT-CCI-CD_-- 9/9/2010 4:31 PM Page 1

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 11 Extra HEALTH CARE LEADERSHIP SUMMIT Second annual event will focus on implementing health care reform changes, Page 14

People

Anuja Kapadia, M.D., has joined the staff at Doctors’ Hospital of Michigan Clarkston Family Tailored to get Health Center. Kapadia graduated in June from DHM’s family medicine residency program. The health center Kapadia provides general services, including physicals, well-child checkups and vaccinations. Kapadia also works in DHM’s Waterford results Emergency Center. Peter McCullough, M.D., has accepted the position of chief academic and scientific officer for St. John Providence Health System. McCullough Health care campaigns more targeted; ROI tracked will be responsible for expansion of the hospital’s research program and BY JAY GREENE coordinating medical education activities. In addition, he will lead a clinical and CRAIN’S DETROIT BUSINESS research team in cardiovascular medicine ealth care advertising campaigns in at Providence Park Heart Institute in Novi. Southeast Michigan are judged to- He is a 2009 recipient of the American H day by return on investment that College of Cardiology Simon Dack Award can be documented by patient volume for scholarly excellence. increases and revenue gains. Mark Saffer, DPM, president and Gone are the days of scattershot ad- CEO of Dearborn-based Midwest Health vertising when hospitals, Plan Inc., was given the Ellis J. Bonner physician organizations, Outstanding Achievement award during INSIDE HMOs, insurance compa- the Michigan Association of Health Plans’ 25th annual conference, held in Ad spending: It’s nies and other health July. The award recognizes exemplary down overall, up care companies spent service, leadership and contributions to for some systems, thousands of dollars in the managed-care industry and Page 12 newspapers, magazines, community. Saffer founded Midwest Vanguard effect? radio or television to Health Plan and Midwest Health Center DMC sale seen as tout a new clinical ser- likely to drive ads, vice, medical device or to help an underserved population in Page 13 Dearborn and the Detroit area. benefit product without Elizabeth Min checking whether pa- Hui Kim, M.D., and tients were attracted or market share Abhinav Deol, M.D., moved. recently joined the Health care organizations now are staff of the Barbara more often using “targeted,” “niche” Ann Karmanos and “relationship” marketing in which Cancer Center in specific population groups — women, Detroit. Kim, who men, seniors — are identified, tracked recently served as a and sent tailored messages using the In- breast surgical ternet or direct mail. oncology fellow at With diminishing or flattening pa- Kim Massachusetts tient care revenue, receiving a strong re- DAVID DALTON General Hospital, turn on investment from an ad cam- Liz Schnell (left), director of brand management, and Rose Glenn, senior vice president for marketing joins Karmanos’ paign is highly desired, said Don Hunt, and advertising, coordinate the promotion and public image of Henry Ford Health System. breast cancer multidisciplinary team managing director and partner in the Henry Ford recently offered evening Over the past several years, as the vol- as a surgeon. Deol, health care practice of Lambert Edwards who recently and Associates in Troy. educational programs in “hot topics for ume of patients has dropped and now completed his “In a down economy, they want mea- women,” Glenn said. flattened, Beaumont has gone back to fellowship training at surable results,” Hunt Using a system to track advertising services to position itself in Karmanos, joins the said. “There are ways to the impact of the mailing, the market, Killian said. bone marrow judge the merits of what In a down 752 women came in for “Southeast Michigan is really not transplant and you spend to make sure “ the services after receiv- growing anymore,” he said. “It has be- Deol malignant you get bang for the economy, they ing the mailing. come, as all markets become, highly hematology multidisciplinary team. buck.” “We looked at the actu- competitive for those people who are Patricia Wilkerson-Uddyback, Hunt said hospitals are want measurable al net revenue for the pa- here. Advertising and marketing be- M.D., FACEP, former chief of emergency spending money, but tients, the cost of the comes more intense.” medicine at Detroit’s Harper University only so long as it can be results. marketing and subtract- Beginning in 2006, Henry Ford began Hospital and Hutzel Women’s Hospital, justified by increasing ” ing the cost of the mail- shifting away from traditional print, ra- was recently promoted to vice president market share. Don Hunt, ings, and the ROI was $1 dio and broadcast advertising and to- of medical affairs for both hospitals. It’s true at Detroit- Lambert Edwards and Associates million,” Glenn said. ward more targeted advertising that in- She will be responsible for managing all based Henry Ford Health Beaumont began to ad- cludes Web-based social media sites like issues and processes related to System. vertise in newspapers and television in Facebook, said Liz Schnell, Henry physicians and patients, including the middle 1980s, said Mike Killian, vice Ford’s director of brand management. quarterly performance reports, process “We are less reliant on mass media improvements, length of stay and and do more targeted and niche market- president of marketing and public af- Glenn said Henry Ford conducted a medical records management. She is a ing where we are appealing to the specif- fairs with William Beaumont Hospitals in mammography campaign called Pinky member of the American College of ic individual needs of different groups,” Royal Oak. Swear on Facebook last Oct. 5 to Nov. 30 Emergency Physicians, the Wayne said Rose Glenn, senior vice president “You advertise to get a return on in- to encourage women to make appoint- County Medical Society, the Michigan for marketing and advertising. “It is vestment,” he said. “We stopped because ments. State Medical Society and the National sometimes significantly more effective it was expensive and we were already Medical Association. than mass media advertising alone.” 100 percent full.” See Results, Page 12 20100913-NEWS--0012-NAT-CCI-CD_-- 9/9/2010 4:30 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 13, 2010 Health Care Extra TOP AD SPENDING AMONG 52 AREA HEALTH ORGANIZATIONS Results: System 2008 Share of total 2009 Share of total Campaigns more targeted Beaumont $3.5 million 15.8% $3.6 million 17.2% ■ From Page 11 DMC $4.4 million 19.7% $3.5 million 16.7% “Customer relationship man- Increasingly, health care orga- they already have to fully staff the Henry Ford $3.6 million 16.1% $3.5 million 16.7% agement, where we target cus- nizations also use social media ER to comply with federal regula- St. John $1.6 million 7.3% $2.2 million 10.7% tomers based on life interests, al- websites that include Facebook, tions, Smith said. Crittenton $773,000 3.5% $1.4 million 6.8% lows us to measure results with Twitter, LinkedIn and Digg — Smith said hospitals often use UM $1.5 million 6.6% $1.3 million 6.5% specific initiatives,” Glenn said. tools used to reach specific audi- their ERs as entry vehicles, or Oakwood $1.4 million 6.3% $995,523 4.8% Glenn said 827 people made ences. “low-priced appetizers,” for the Note: Figures reported to VoiceTrak. Excludes Internet spending, departmental staffing mammogram appointments, some To judge interest in posted arti- main course of lucrative cardio- costs and other factors. Percentages are out of all area systems, not just those listed. encouraged with the famous Face- cles, podcasts or videos, health vascular, orthopedic or gastroin- book “poke.” In 2008, a similar care organizations can encourage testinal elective surgeries. Hospitals spend less on ads, research firm says campaign netted 359 people. patients to register where they can “DMC has tried for years to “We will do more niche genera- post opinions about a strategy or bring patients downtown, and this Advertising spending for area their entire advertising and mar- tional marketing,” Glenn said. “It service. is an example of one of their ef- health systems dropped 6.3 percent keting budgets and excludes Inter- doesn’t cost that much.” Diana Marx Prosi, DMC’s vice forts,” Smith said. to $20.8 million in 2009, from net spends and departmental Schnell said analyzing ROI president of marketing, said DMC’s Prosi said DMC has been trying $22.2 million, for 52 hospitals and staffing costs. helps management make deci- website gets a lot of attention be- to stretch its market reach into the health care organizations that re- Some hospital-based systems cut sions on how to best spend its cause of former broadcast journal- suburbs, primarily because its ported data to Tucson, Ariz.-based advertising spending in 2009, but marketing budget. ist Emery King’s medical videos. strengths are advanced specialty market research company VoiceTrak. several increased spending. All de- “We evolved from doing direct DMC also recently posted a services that include children’s, The numbers are much lower cided to get their messages out on mail to putting resources in video on YouTube that featured rehabilitation, vision, obstetrics than those reported on IRS Form less-expensive social media web- things that have very specific intensive care unit staff dancing and cardiology. 990, hospital officials say, because sites and embark on targeted mar- measurable results,” Schnell said. while washing their hands. The Capturing the attention of pa- VoiceTrak data doesn’t represent keting strategies, officials said. video brought more than 2,000 tients who live outside a hospital’s views, she said. primary market has been a goal “If you build it, they will come,” for other systems besides DMC for Prosi said. “We had Channel 7 several years, said Susan (ABC) contact us on that piece and Hanchett, Oakwood’s corporate di- another station did the same rector of brand management. thing. You know something is A lot had to with consolidation PPO HMO RX ASO HRA working when that happens.” of hospitals and the increase in the While ROI on specific campaigns number of physician-staff outpa- is important, health care organiza- tient medical centers, she said. tions still conduct branding cam- Hospitals had so many locations to paigns to make sure their cus- support that they spent their mon- tomers know who they are and how ey in larger media, buying TV they differ from their competitors. spots to support physicians and Many people have seen Henry service lines. Ford Health System’s campaign, Oakwood spends most of its ad For when your INC “When others can’t, we can;” Oak- budget on its primary service wood Healthcare’s “We specialize. lines, or centers of excellence, that In you;” Barbara Ann Karmanos Can- include cardiac and vascular care, needs an . cer Institute’s “Hear cancer. Think orthopedic, women’s health and ASO Karmanos;” St. John Providence neuroscience. EPO Health System’s “Passion for Heal- One of Oakwood’s more success- ing;” and Detroit Medical Center’s ful ad campaigns has been its “When it is serious, go to DMC.” “Points of Pride” messages that One of the longest-running feature specialty physicians talk- branding campaigns is Beaumont ing about Oakwood’s quality and Hospitals’ “Do you have a Beau- patient satisfaction awards. HRA PPO WELLNESS HSA RX mont doctor?” which began in 1999. The campaign, begun three Killian said that simple slogan years ago, is on radio, in newspa- has been Beaumont’s best cam- pers and on outdoor billboards, paign. Hanchett said. “We have mentioned other “We know consumers want in- phrases, but the key to health care formation, and they seek it out on is seeing a doctor,” Killian said. the Web, so we do a lot of testimo- EPO ASO FSA DENTAL POS HMO “We have been very consistent nials and have people tell stories with our message.” about the care they receive,” Other successful ad campaigns Hanchett said. have focused on emergency de- CareTech Solutions, a Troy-based partments. information services company, In 2000, Oakwood started its 30- uses the Web and social media to minute-or-less wait guarantee to advertise its product, along with POS WELLNESS HMO EPO INDIVIDUAL see a doctor or receive an apology traditional methods and trade and two movie tickets. shows, said Colleen Hanley, vice Shortly after Mike Duggan be- president of marketing, communi- came CEO of DMC in 2004, he de- cations and government affairs. cided to beat Oakwood’s pledge by CareTech, co-owned by DMC, Look to Priority Health for innovative products with offering patients a 29-minute ER Oakwood and Compuware Corp., guarantee. has contracts with more than 150 proven care management that can significantly curb MEDICARE COBRA Executives for both systems say hospitals nationwide. The compa- costs and improve your employees’ health. Plus their guarantees not only have ny offers information-technology funding that’s right for you. Call your agent or Priority brought in additional patients, but management services to hospitals that the promises have made them for clinical, accounting and quali- Health at 800 471-2504 or visit priorityhealth.com to more efficient in ER care. ty control systems. learn more. This year, DMC began posting “We are launching a national HSA POS on its website actual ER wait advertising campaign to get our times — in minutes and seconds — message to the 2,500 hospitals that for its eight hospitals. could use CareTech,” Hanley said. While generating revenue and “Hospitals are lagging a bit with enhancing hospitals’ positive im- adoption of digital solutions.” ages, Dean Smith, a professor of Hanley said CareTech’s best ap- health management at the Universi- proach is using testimonials by RX INDIVIDUAL PPO ASO DENTAL ty of Michigan’s School of Public CEOs. Health, said the ER guarantees also “They describe … the problems can increase inappropriate ER vis- they encountered and how their its, waste health care dollars and pain went away,” she said. “It is exacerbate overcrowding. quite effective.” Hospitals can make money Jay Greene: (313) 446-0325, when their ERs are busier because [email protected] 20100913-NEWS--0013-NAT-CCI-CD_-- 9/9/2010 4:28 PM Page 1

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 13 Health Care Extra DMC sale, health care reform could drive hospital advertising

Starting this year, two major de- tower for Children’s Hospital of velopments could alter health care Michigan. organizations’ plans to market and Diana Marx Prosi, DMC vice advertise their products, and might president of marketing, said an ad- ramp up competition for patients. vertising strategy for after the ac- The first is health care reform. quisition has not been settled. Over the next five years, about “We have so many things to 1 million of Michigan’s 1.2 million communicate. It is like a rebirth of uninsured are expected to either DMC with those investment dol- join the state Medicaid program or lars in new buildings and patient buy subsidized private health in- rooms, the children’s specialty surance from commercial insurers tower,” Prosi said. and HMOs. Many of these patients Officials for Henry Ford Health either never have been insured or System, St. John Providence Health have no allegiance to a hospital, System, Oakwood Healthcare and doctor or insurance company. William Beaumont Hospitals say they The second is the expected con- do not plan to increase ad spend- version of the Detroit Medical Center ing when DMC becomes a for-prof- into one of the Midwest’s largest it health system. for-profit health systems. But Dean Smith, a professor of In June, DMC signed a final health management at the Universi- agreement to sell its seven-hospi- ty of Michigan’s School of Public tal system to for-profit Vanguard Health, said DMC competitors Health Systems Inc. of Nashville in a could respond quickly if patient $1.5 billion deal. The closing is ex- volume shifts. pected by Oct 1. “If DMC increases its ad budget DMC recently launched an ad and patients move, there will be a mailing campaign with Vanguard response. St. John and Henry Ford — “A New Partnership for De- won’t be silent. They will spend troit” — showing the proposed more,” Smith said. new 175,000-square-foot patient — Jay Greene Survey research guides St. John’s ads St. John Providence Health System dianapolis. in Warren uses a survey-based re- Touchpoints are the contact search method called Touchpoint points used by brands like St. to help decide what advertising ve- John, Henry Ford Health System, hicle — print, television, bill- William Beaumont Hospitals, or for board, word of mouth or website — that matter, Pepsi or McDonalds, it should use to get its message out that are preferred by patients or to patients about a particular clini- potential customers. cal service line. For health care, a touchpoint Jan Cosby, the system’s vice could be a doctor’s recommenda- president of marketing and com- tion, a radio or TV ad, hospital The Leukemia & Lymphoma Society munications, said the Touchpoint website, word of mouth or a bill- approach helps guide advertising board, Cosby said. for St. John’s clinical service lines “Our doctors rank as the highest that include neurosciences, heart touchpoint. They have the most ongratulates disease, cancer, women’s services, credibility,” Cosby said. orthopedics and bariatrics. Cosby said St. John uses the sur- the 2010C Michigan Chapter Man of the Year. Touchpoint is a proprietary sur- vey to help decide where it should vey system offered through St. invest resources and ad dollars. John’s ad agency, Optimedia of In- — Jay Greene

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Page 14 CRAIN’S DETROIT BUSINESS September 13, 2010 Health Care Extra Summit to discuss implementing health care reform changes

Health care reform has pants under age 19, cov- plan changes. reform bill. survey on making Detroit a arrived. Just ask any erage of children to age To address these and other It starts with medical destination and talk metro Detroit human re- 26, the elimination of changes from the federal Account- registration at about health care reform oppor- sources director. lifetime dollar benefit able Care Act of 2010, Crain’s De- 7:30 a.m. and tunities for metro Detroit They and their health levels, and elimination troit Business will host on Oct. 14 concludes with providers. benefit specialists are of cost-sharing on pre- at the Rock Financial Showplace in a networking re- After breakfast, a panel of em- scrambling to get ready ventive care services. Novi its second annual Health ception 3-4:40 ployers will discuss changes to comply with new em- Health care reform Care Leadership Summit. p.m. they will see from health care ployer mandates that go also requires employers More than 600 participants — Paul Keckley, reform. Employers are expected into effect for plans start- to report the cost of em- representing payers, hospitals, executive direc- to include ex- Keckley ecutives with ing in January. Jay Greene ployer-sponsored health physicians, employers, pharma- tor of the De- The mandates include coverage for each cov- ceutical companies and individu- loitte Center for Health Solutions, is Whirlpool the elimination of exclusions for ered employee on their W-2 form als — are to discuss the opportuni- back to host the breakfast session. Corp., DTE En- pre-existing conditions for partici- and provide a variety of notices of ties presented by the health care Keckley will discuss a pre-event ergy, Meijer Inc., The Dow Chemical Co., Ford Motor Co. and Kellogg Co. Jerry Konal, Konal a health and benefits principal with Mercer It’s really our customers who win. in Detroit, will moderate the employer panel. Later in the morning, the group will break into panels to discuss the Eight Big Ideas gen- erated from last year’s summit and modified slightly by the summit’s advisory panel. Panelists will discuss how to create an online health infor- mation exchange, how to in- crease primary care provider supply, expand the use of med- ical homes, encourage wellness “Top Ranked “ ” programs, use lean process im- provement techniques to im- Access to Care prove efficiency and to reduce in Michigan” overcapacity of hospitals, Customer Service surgery and imaging centers, Overall Rating of Access to Rx Drugs which drives up health care Health Plan and Health Care. costs. Centers for Medicare and Medicaid Services Other panels will discuss Quality Compass 2009 ratings 2009 CAHPS® survey of consumers making Southeast Michigan a † HealthPlus Commercial HMO* HealthPlus Medicare HMO Plans medical destination for pa- tients, companies and research and how to leverage existing federal and state grants to drive medical research and expand Detroit’s life science sector. During lunch, Crain’s will honor the 2010 winners of its an- nual Health Care Heroes in cor- porate achievement, physician, allied health, advancement “Excellent” “One of America’s Best” in health care ´$PHULFD·V%HVW+HDOWK,QVXUDQFH3ODQVµUDQNLQJV and health NCQA accreditation rating of HealthPlus Commercial, E\861HZV :RUOG5HSRUW1&4$IRU care trustee 0HGLFDUH 0HGLFDLGSODQV HealthPlus Commercial and Medicare plans†† leadership. Other speakers in- clude Robert Mecklenburg, MD, medical Mecklenburg director of the Center for Health Care So- lutions at Vir- ginia Mason Medical Center in Seattle; Get the Plus in your life! and Rachel Maguire, a health futur- ist with the In- 1-800-332-9161 Maguire stitute for the www.healthplus.org Future in Palo Alto, Cal. I am expecting a fast-paced and informative meeting. Of course, audience participation * The source for data contained in this publication is Quality Compass® 2009 and is used with the permission of the National Committee for Quality Assurance (NCQA). Quality Compass 2009 includes certain CAHPS GDWD$Q\GDWDGLVSOD\DQDO\VLVLQWHUSUHWDWLRQRUFRQFOXVLRQ EDVHGRQWKHVHGDWDLVVROHO\WKDWRIWKHDXWKRUVDQG1&4$ VSHFLÀFDOO\GLVFODLPVUHVSRQVLELOLW\IRUDQ\VXFKGLVSOD\DQDO\VLVLQWHUSUHWDWLRQRUFRQFOXVLRQ is the key. So get involved, it Quality Compass is a registered trademark of NCQA. CAHPS® is a registered trademark of the Agency for Healthcare Research and Quality (AHRQ). † CAHPS is a registered trademark of the Agency for Healthcare will vastly improve the discus- 5HVHDUFKDQG4XDOLW\ $+54  1&4$ LVDSULYDWHQRQSURÀWRUJDQL]DWLRQGHGLFDWHGWRLPSURYLQJKHDOWKFDUHTXDOLW\ ‚‚861HZV1&4$ $PHULFD·V%HVW+HDOWK,QVXUDQFH3ODQV´$PHULFD·V%HVW+HDOWK sion. ,QVXUDQFH3ODQVµLVDWUDGHPDUNRI861HZV :RUOG5HSRUW Jay Greene: (313) 446-0325, [email protected] DBpageAD.qxd 9/8/2010 10:45 AM Page 1

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Page 16 CRAIN’S DETROIT BUSINESS September 13, 2010 CRAIN'S LIST: WAYNE COUNTY'S LARGEST EMPLOYERS Ranked by full-time employees, excluding Detroit, Hamtramck and Highland Park Full-time Full-time Full-time Company employees employees employees in Worldwide Address Wayne County Wayne County Michigan employees Rank Phone; website Top local executive Jan. 2010 Jan. 2009 Jan. 2010 Jan. 2010 Type of business Ford Motor Co. Alan Mulally 33,000 B 33,000 B NA 159,000 Automobile manufacturer 1. 1 American Road, Dearborn 48126 president and CEO (313) 322-3000; www.ford.com Oakwood Healthcare Inc. Brian Connolly 5,833 5,679 5,837 5,837 Health care system 2. 1 Parklane Blvd., Suite 1000E, Dearborn 48126 president and CEO (313) 253-6000; www.oakwood.org Henry Ford Health System Nancy Schlichting 3,478 3,727 18,473 18,473 Health care system 3. 1 Ford Place, Detroit 48202 president and CEO (800) 436-7936; www.henryford.com U.S. Postal Service Nancy Rettinhouse 2,668 2,691 NA NA Postal service 4. 1401 W. Fort St., Detroit 48233-9998 district manager (313) 226-8607; www.usps.gov Johnson Controls Beda Bolzenius 2,650 2,700 B NA 130,000 Automotive supplier, building control systems and 5. 49200 Halyard Drive, Plymouth 48170 president, automotive facilities management (734) 254-5000; www.johnsoncontrols.com experience AutoAlliance International Inc. C John Savona 2,517 3,508 NA NA Joint-venture automobile assembly firm 6. 1 International Drive, Flat Rock 48134 president, CEO and plant (734) 782-7800 manager Dearborn Public Schools Brian Whiston 2,208 D 2,215 D 2,208 D 2,208 D Public school district 7. 18700 Audette, Dearborn 48124 superintendent (313) 827-3020; www.dearbornschools.org Livonia Public Schools Randy Liepa 1,990 D 2,048 D 1,990 D 1,990 D Public school district 8. 15125 Farmington Road, Livonia 48154 superintendent (734) 744-2500; www.livonia.k12.mi.us Plymouth-Canton Community Schools Craig Fiegel 1,925 D 1,967 D 1,925 D 1,925 D Public school district 9. 454 S. Harvey St., Plymouth 48170 superintendent (734) 416-2700; www.pccs.k12.mi.us U.S. government NA 1,724 1,800 B 27,696 1,917,515 Federal government 10. 477 Michigan Ave., Detroit 48226 (800) 688-9889

This list of Wayne County employers encompasses companies with headquarters in Washtenaw, Oakland, Wayne, Macomb and Livingston counties. Companies with headquarters elsewhere are listed with the address and main executive of their Detroit-area office. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA = not available. U.S. Steel-Great Lakes Works, No. 7 on last year's list, temporarily idled operations in December 2008. B Crain's estimate. C Joint venture between Ford and Mazda. D Figures are FTE counts from the Center for Educational Performance and Information. LIST RESEARCHED BY ANNE MARKS

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September 13, 2010 CRAIN’S DETROIT BUSINESS Page 17

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Growth Corp.; others. With: Link TUESDAY WORKSHOP TARGETS Howard III, president and CEO, Power- link Facilities Management; Perry Mehta, president and CEO, FutureNet MANAGING SUDDEN GROWTH Group; and Edward Walker, president When a big contract comes in, a and CEO, W Industries. TechTown, second-stage company can double Detroit. Free, registration required. in size overnight. Here’s a chance Contact: (617) 297-3127; website: to learn from executives who www.icic.org/detroit. managed a specific area of a company through sudden growth, at Crain’s Second Stage Workshop: THURSDAY Scaling Up Fast. SEPT. 16 Speakers are to include Delivering America’s Energy Security. moderator Lee 11:30 a.m.-1:30 p.m. Detroit Economic Meadows, Club. With: Clarence Cazalot Jr., presi- professor of dent and CEO, Marathon Oil Corp. De- management, troit Marriott. $45 members, $55 guests, Walsh College; $75 nonmembers. Contact: (313) 963- and panelists 8547; e-mail: [email protected]; web- Michelle site: www.econclub.org. Crumm, chief business officer, FRIDAY Meadows Adaptive SEPT. 17 EXCELLENCE Materials Inc.; Bill Johnson, CFO, Xcend Group; Tom Nixon, partner, Extreme Change: Four Women, Four by design Identity Marketing and Public Sectors, Total Transformation. 11:30 Relations; and Jason Teshuba, a.m.-1:30 p.m. Inforum. With: Susie Ell- CEO, Mango Languages. wood, CEO, Detroit Media Partner- After the presentation, participants ship; Carol Goss, president and CEO, can talk with executives in a fast- the Skillman Foundation; Barbara Mc- paced, peer-to-peer roundtable. Quade, U.S. attorney for the eastern district of Michigan; and Mary Zucker- The event takes place 7:30-10:30 man, COO, Detroit Medical Center. a.m. Tuesday at the Michigan MotorCity Casino-Hotel, Detroit. $55 CORPORATE I RETAIL I HEALTHCARE State University Management members, $65 nonmembers, $600 table Education Center in Troy. Tickets of 10. Contact: (877) 633-3500; website: are $35, $30 each for groups of www.inforummichigan.org. 10 or more, $40 at the door. CALL US TODAY AND EXPLORE YOUR DESIGN OPTIONS For more information, call (313) 446-0300, e-mail COMING EVENTS 248 855 7040 l DavisInteriorDesign.com [email protected] or visit Eggs & Energy Breakfast Series. 8-10:30 www.crainsdetroit.com. For a.m. Sept. 20. Engineering Society of sponsorship opportunities, contact Detroit. With: Mujeeb Ijaz, systems en- Marla Downs at (313) 446-6052 or [email protected]. ergy solutions group manager, A123 systems. ESD, Southfield. $35 members, $50 nonmembers, includes continental TUESDAY breakfast. Join ESD for $114 and attend SEPT. 14 for free. Contact: (248) 353-0735, ext. 149; e-mail; [email protected]; website: Expanding Opportunities in the Defense www.esd.org. Industry. 7:30 a.m.-10 p.m.; also 7:30 a.m.- 4:30 p.m. Sept. 15. Michigan Chapter of the National Defense Industrial Associ- Crain’s Michigan Business-Bay Area. ation. With: Tracey Pinson, director, of- Noon-2 p.m. Sept. 22. Crain’s Detroit fice of small-business programs, De- Business. Topic: Michigan’s New Sili- partment of the Army; others. Marriott con Valley. With: Mary Lou Benecke, Detroit, Troy. $395. Contact: (586) 825- vice president of public affairs and cor- 7141; e-mail: [email protected]; website: porate communications, Dow Corning www.ndia-mich.org. Corp. Northwood University, Midland. $50, $45 each for groups of 10 or more, $60 at the door. Contact: (313) 446-0300; e- WEDNESDAY mail: [email protected]; website: SEPT. 15 www.crainsdetroit.com. For sponsor- ship opportunities, contact Marla Best Practices for Growing Your Busi- Downs at (313) 446-6052 or ness. 8-10:30 a.m. Detroit Economic [email protected].

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BUSINESS DIARY ACQUISITIONS signed a letter of intent to acquire Financial Services, Los Angeles, for textbooks, has launched an iPad pub- Edsel and Eleanor Ford House, Grosse Global Teleconnects Corp., Chicago, credit application integration directly lishing program. The move will allow Pointe Shores, has launched an Amsdell Storage Ventures I LLC, Bing- Ill., a calling card distributor and tele- within the dealer’s dealership man- students and instructors greater flexi- iPhone and iPad application and in- ham Farms, and Compass Self Storage com network company. agement system. bility in accessing course materials. teractive tour. The app is free on LLC, Bingham Farms, subsidiaries of iTunes and as a Web app for most Marketing Worldwide Corp., Howell, Ingenex, Ann Arbor, an Internet mar- Telephone: (800) 218-5971. Website: Amsdell Cos., Cleveland, Ohio, acquired www.xanedu.com. smart phones. Pre-loaded iPod Touch- has agreed to sell up to $5 million of its keting agency, has been selected to de- two self-storage facilities, at 160 W. es are also provided on-site to visitors. common stock to Southridge Partners sign, develop and implement a new Stardock, Plymouth, has made Bethes- Avon Road, Rochester Hills, and 40900 Website: www.fordhouse.org. II LP, Ridgefield, Conn. website and launch a new social me- da Softworks’ titles available on Im- Grand River, Novi, from Delaware- dia campaign for Emerson School, pulse, the digital download platform Group Associates Inc., Bingham based MW Tolero Holding Corp. CONTRACTS Ann Arbor. for PC games. Website: www. Farms, a health and welfare Viper Networks Inc., Troy, a telecom- Estate Organization Services, Grosse impulsedriven.com. administration company, has munication network operations and Open Dealer Exchange LLC, Troy, has Pointe Woods, has signed with Execu- Courtyard by Marriott, Ann Arbor, man- launched a new corporate website, technical management company, has signed an agreement with Westlake tor’s Resource, Louisville, Colo., to be- aged by Alliance Hospitality Manage- www.groupassociates.com. come a distributor of the EstateLogic ment, Raleigh, N.C., has remodeled its Fry Inc., Rochester Hills, a subsidiary online organization system in Michi- lobby to better serve business clients. of Micros Systems Inc., Columbia, gan. Website: www.gocourtyard.com. Md., launched a new membership The U.S. Army Tacom Lifecycle Man- ArvinMeritor Inc., Troy, has launched website for the United States Tennis agement Command, Warren, has a redesigned website at www. Association, White Plains, N.Y., a not- awarded General Dynamics Land Sys- arvinmeritor.com. for-profit organization that promotes , Sterling Heights, a business and develops the growth of tennis. tems Formcode Design Group, Troy, a unit of General Dynamics, Falls Website: www.usta.com. graphic design company, designed Church, Va., $9.8 million to purchase 800-292-3831 and launched a new website, RouteOne, Farmington Hills, an- materials to support production of www.spireintegrated.com, for Spire nounced its website is now compatible double-V-shaped hulls for Stryker ar- indiantrails.com Integrated Systems Inc., Troy, an au- with iPhone, iPad, iPod touch and An- mored combat vehicles. dio/video and control systems compa- droid mobile browsers. Virtually all Driven Solutions Inc., Ferndale, an ad- ny. Web site: www.formcode.com. RouteOne functionality can now be vertising and marketing agency, has performed on these mobile devices. Business Improvement Team, Bloom- signed ABC Warehouse Inc., Pontiac, Website: www.routeone.net. field Hills, launched a speakers bureau an appliance and electronics retailer, as a client. to provide professional speakers for events, conferences and trade shows. STARTUPS

ONE HU Website: www.bizimpteam.com. Productive Pricing LLC, a transfer G ND IN R EXPANSIONS T E A D Altair Engineering Inc., Troy, added pricing consulting firm, at 390 N. R Y B E Mango Languages, Farmington Hills, Harvey St., Plymouth. Telephone: E A Stream, the thermal fluid analysis L R

E S a provider of foreign language learn- (248) 752-1190. Website: www. C 100 system by Software Cradle, Osaka, ing programs, has expanded with its Japan, to its HyperWorks Partner Al- productivepricing.com. entry into the education market. The liance. HyperWorks users can now 200 West, an American cuisine Mango program is now available for download the latest version of Stream restaurant, in the Detroit Marriott Ho- use in educational institutions of all from the HWPA website at www. tel, at 200 W. Big Beaver Road, Troy, in types across North America. hyperworksalliance.com. the former location of a Shula’s Steak- Plumbing Professors, Canton Town- house. MOVES ship, a plumbing and sewer Credit Law Services, a law firm spe- Independent Broker Network LLC, a repair company, now offers a free cializing in consumer credit repair, at real estate firm, from 6678 Dixie High- Lunch and Learn program on its 30555 Southfield Road, Suite 500, way to 6060 Dixie Highway, Clarkston. epoxy pipe lining system. Website: Southfield. Telephone: (800) 379-7010. Telephone: (248) 623-6030. www.plumbingprofessors.com. Website: www.creditlawservices.com. Tim Crawford Nationwide Insurance Agency, from Rochester to 1415 Wal- ton Blvd., Rochester Hills. Telephone: (248) 402-5005. NEW PRODUCTS Comfort and One of Us Films, Detroit, has released “Daisy Tells a Secret,” an animated film about personal safety and body t
$IBSUFST ownership for children 4 to 8 years Luxury old, commissioned by Haven, Pontiac. Website: www.oneofusfilms.org. t
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4FSWJDF promotional code at time of booking: CDB52sep sive driver alertness feature to its SafeTrak system that detects and monitors erratic driving or weaving within lanes. Website: www.safetrak. takata.com. Bonal Technologies Inc., Royal Oak, a provider of sub-harmonic vibratory stress relief technology, will soon re- Jazz up this year’s lease its Meta-Lax 2000 semiautomatic touch-screen system. Website: holiday party! www.bonal.com. American Laser Enterprises LLC, Wixom, launched A-Las, an automat- ed laser alignment system. Website: Our cultural places offer creative www.a-l-e.net. spaces for your next event. NEW SERVICES Call today to discover (and help support) Warner Norcross and Judd LLP, South- our region’s treasured cultural gems field, has established a health care re- through our one-stop service. form practice group to assist employ- ers, insurers and health care providers in preparing for and com- plying with the changes to health in- the surance and health care-related pro- cultural grams enacted by Congress. Website: www.wnj.com. concierge Vistage Michigan, formerly TEC De- a program of the cultural alliance troit, St. Clair Shores, has launched a of southeastern michigan, a 501(c)(3) organization website, www.vistagemichigan.com. Telephone: (586) 443-5880. Borders Group Inc., Ann Arbor, in conjunction with Alibris, Emeryville, Find out more! Cal., has launched its new Borders Textbook Marketplace at www. www.theculturalconcierge.org borders.com/textbooks. 248.766.5599 [email protected] XanEdu Publishing Inc., Ann Arbor, a provider of course packs and custom 20100913-NEWS--0018,0019-NAT-CCI-CD_-- 9/9/2010 3:55 PM Page 2

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 19

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

PEOPLE DISTRIBUTION REAL ESTATE Ohio. SUPPLIERS dent, Mitsubishi Motors North Ameri- ca Inc., Cypress, Calif.; Atsushi Onishi Brian Alderete to Jim Young to se- Charles Runyan Masayasu Saito to president, Aisin to treasurer, from financial manager, vice president of nior vice presi- to chief social World Corp. of America, Plymouth, Aisin Seiki, Japan; Shingo Sanjo to ex- supply and trans- marketing offi- dent, Plante from managing officer of the Anjo, ecutive vice president, from general portation, RKA cer, Short Sale Moran Cresa, Japan, plant; also, Takashi Araki to ex- manager, Toyota Sales Group, Japan; Petroleum Cos. Pros LLC, War- Southfield, from ecutive vice president, from treasurer Masanori Saso to executive vice presi- , Romulus, Inc. vice president of ren, from presi- and secretary; Tsukasa Ito to execu- dent, from human resources manager, from vice presi- ideation and exe- dent, Charles tive vice president, from president, Aisin Seiki, Japan; and Kazuya dent of supply and cution, Lilli- Runyan Enter- Aisin Automotive Castings, London, Tsukamoto to executive vice presi- logistics, Fleet bridge Health- prises LLC, Ky.; John Koenig to executive vice dent, from treasurer, Aisin Brake and Card Fuels, Bak- Young care, Columbus, Grand Rapids. Saito president, from executive vice presi- Chassis Inc., Terre Haute, Ind. ersfield, Calif. Alderete EDUCATION Kathy Spring to director of develop- ment, Cleary University, Howell, from director of annual fund and alumni re- lations, Jackson Community Col- lege, Jackson. Scott Behrens to dean of academic affairs and opera- tions, South Uni- versity, Novi, from associate professor of edu- cation, Adrian Behrens College, Adrian. FINANCE Gregory Cahalan to partner, Plante & Moran PLLC, Southfield, from associate; also, Doug Hocken- borcht to partner, from associate; Martin Olejnik to partner, from as- sociate; Terry Ole- jnik to partner, Warner from associate; Paul Wills to part- ner, from associ- ate; Mark Warner to manager, from associate; Michele McHale to manager, from associate; and Bri- Retirees need to know their best Medicare option. an Franey to part- ner, Auburn They need to know about BCN Advantage. Hills, from associ- ate. McHale Kevin Johns to At Blue Care Network, our BCN Advantage HMOSM plan has been chosen by shareholder, Clay- ton & McKervey many individuals and businesses across Michigan. Why? Because Blue Care PC, Southfield, Network believes outstanding service and access to quality care are what from senior man- ager. matter most to Medicare beneficiaries and to you. And that’s exactly what BCN Advantage provides its members — all at exceptional value. GOVERNMENT Patrick Nemecek to director, Can- Whether you have a large group or a small one, BCN Advantage can tailor a ton Public Safety, plan to meet your needs. Learn more by visiting us online, contacting your Blues Canton Town- ship, from deputy representative or independent agent or calling Blue Care Network today. Nemecek police chief.

EOPLE GUIDELINES P BCN Advantage HMO Announcements are limited to CONTACT INFO management positions. Nonprofit MiBCN.com/medicare and industry group board appointments can be found at Call 1-866-966-BLUE (2583) www.crainsdetroit.com. Send TTY users call 1-800-431-7944 submissions to Departments, Crain’s Detroit Business, 1155 (8 a.m. to 5 p.m., seven days a week) Medicare and more Gratiot Ave., Detroit, MI 48207- Or contact your Blues representative Blue Care Network of Michigan is a nonprofit corporation and independent 2997, or send e-mail to licensee of the Blue Cross and Blue Shield Association [email protected]. or independent agent Releases must contain the person’s SM name, new title, company, city in Leading Michigan to a healthier future. which the person will work, former title, former company (if not promoted from within) and former BCN Advantage HMOSM is a health plan with a Medicare contract. city in which the person worked. H5883_S_GrpDecMkrAD07/10 Photos are welcome, but we cannot guarantee they will be used. 20100913-NEWS--0020-NAT-CCI-CD_-- 9/9/2010 5:12 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS September 13, 2010 Quick move puts media buyer into driver’s seat of MIS’ RV rental biz

BY BILL SHEA ages that include the RV, campsite CRAIN’S DETROIT BUSINESS and services. Renting only the camper costs $1,850 to $2,400. When Belleville-based Walt Corporate clients include Grand Michaels RV succumbed to the reces- Rapids-based Gordon Food Service, sion in late 2008, its local media buy- Ann Arbor-based Domino’s Pizza 100% Health Care er moved swiftly to salvage one of Inc. and Newell Rubbermaid Inc. its still-successful side businesses. Dennis Doyle, owner of Wayne- A nine attorney The recreational vehicle dealer- based wheel bolt manufacturer practice group ship had the camping and RV rental B&D Cold Heading Inc., has a five- concession at Michigan International year lease on a suite at the track fully committed Speedway near Brooklyn for the and rents multiple RVs from Win- track’s NASCAR races — the Heluva nie for the race weekends. to Michigan’s Good Sour Cream Dips 400 in June “For a guy that’s had it only two and the Carfax 400 in August, which years, he’s done a great job know- health care draw an estimated 100,000 fans ing what people want and getting each. things prepared at the track,” industry. Andy Winnie, owner of Ply- Doyle said. mouth-based eBuy Media Inc., had Having Winnie already involved been handling the RV dealership’s in the RV concession before taking Learn more at broadcast advertising deals since ROBERT CHASE it over meant less of a headache for fosterswift.com 2004. He also had been doing the the speedway as race season ap- paperwork on the track camping Andy Winnie seized the moment to secure the RV rental concession at proached. concession. Michigan International Speedway. “There’s always a relief when He learned in March 2009 that the there’s continuity,” said Sammie concession was in default, so he bro- exclusive rights to be official RV Lukaskiewicz, the track’s director kered a deal with the speedway and and camping sponsor at the track, of communications. lender to take over the service. said Josh Burgett, the speedway’s Walt Michaels was pleased Win- “Within 60 days, I put together a Sign-up for Health Care updates at How can we assist? director of corporate sales. nie kept the track business going. P: 248.539.9900 deal with the bank, launched the The campsites sold to Winnie for “He called me up and congratu- fosterswift.com/news-signup.html website (MISCamping.com) and E: [email protected] the season range from $130 to lated me. Despite all the bad times started renting RVs,” Winnie said. $2,100 for a weekend. he had, he was excited for the op- “I literally took the box of keys He estimates about 60 percent of portunity I had,” Winnie said. from the bank’s law firm and went his clients are corporate. He Bill Shea: (313) 446-1626, straight to the racetrack and start- charges $2,400 to $6,000 for full pack- [email protected] Lansing | Farmington Hills | Grand Rapids | Detroit | Marquette | Holland ed renting them out.” Winnie paid $400,000 for 32 recreation vehicles worth an esti- mated $650,000, and because of de- mand he recently bought five more MARKET PLACE directly from the manufacturers. “Back when I wanted to start this, in March 2009, the market was ANNOUNCEMENTS & BUSINESS & terrible. No one was loaning money SERVICES INVESTMENTS to anyone,” he said, adding that he used a combination of his own mon- HEALTH & FITNESS BUSINESS OPPORTUNITIES ey and financing to buy the vehicles and pay the rights fee at the track. Successful physician/medical inventor seeks The risk paid off and business is business partner(s) for new national Get active and interactive at franchise-model of health services and/or booming: Every RV gets rented for other medical innovations. Opportunity for the races, and Winnie grosses about extraordinary growth. Concepts utilize latest $300,000 for the two race weekends. medical technologies, providing improved delivery and quality of care. Ideal candidate has The track has 9,000 campsites on aHealthierMichigan.org access to capital and experience in start-up its 1,400 acres in the Irish Hills entrepreneurial ventures. RadVision Healthcare area near Brooklyn, and Winnie Email: [email protected] has a concession on more than 50 LEGAL SERVICES of the sites spread over nine camp- grounds. This summer he expand- Antone, Casagrande & Adwers, P.C. Call Us For Personalized ed rentals to the rest of the sum- AV-rated Immigration Law Firm Service: (313) 446-6068 mer, too. Firm’s Principal is an Adjunct Immigration Law “The word is out and the de- Professor at MSU FAX: (313) 446-1757 mand is there,” he said. “I call it Farmington Hills, MI 48334 E-MAIL: [email protected] Metro Cars will handle all your transportation needs my 401(k) plan. It generates a nice Phone (248) 406-4100, www.antone.com INTERNET: little cash flow, and I can soon pay www.crainsdetroit.com/section/classifieds From 1 to 56 passenger vehicles available off the RVs.” SHREDDING SERVICES The media-buying business re- See mains his primary source of in- Secure On Site Document Shredding Crainsdetroit.com/Section/Classifieds come, generating about $2 million Routine Service/One-Time Cleanouts Metro Cars is the official and exclusive provider of sedan Hard Drive Destruction, Recycling Programs for more classified advertisements in annual sales. 313-343-9600 www.GeneralShredding.com service for the Detroit Metro Airport MISCamping.com is a turnkey rental operation: Clients rent an RV and space, and Winnie and a few helpers set everything up and act as a concierge service for the race weekend. “It’s a hassle-free camping expe- rience for corporate customers,” he said. “They just show up and enjoy the camping experience and walk Metro Cars Powered by Propane away. There’s no setup. The air con- ditioner is on, the refrigerator is cold. We provide them with fire- wood, lawn chairs. They pull up and start enjoying their weekend.” Winnie pays an undisclosed 800-456-1701 yearly rights fee that covers his marketing, including signs, the cost of the campsites and for the 20100913-NEWS--0021-NAT-CCI-CD_-- 9/10/2010 6:00 PM Page 1

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 21 Two of three ice makers in antitrust suit settle with state

BY CHAD HALCOM Home City could soon pay out As in the federal case, Cox was reached for comment Friday. bearing on the civil lawsuit, since CRAIN’S DETROIT BUSINESS $13.5 million to retailers, after U.S. investigating allegations that The attorney general’s commu- it covers a state law and not a fed- District Court Judge Paul Borman in Home City and Arctic Glacier col- nications director Joy Yearout eral one. Two of the three ice manufactur- Detroit agreed earlier this month to laborated between 2001 and 2007 said the settlement resolves claims Purchasers, mainly retailers, are ers and distributors facing a class- give preliminary approval to that to reduce competition in the against Arctic Glacier and Home suing the icemakers for alleged an- action lawsuit in Detroit will pay a company’s proposed settlement in metro Detroit market by allocat- City only, and he would not com- titrust violations, fraudulent con- combined $740,000 under an agree- its portion of a civil lawsuit. ing geographic territories and ment on whether an investigation cealment, noncompetitive practices ment with Michigan Attorney Home City and Arctic Glacier customers between themselves, continues against Reddy Ice. and pricing unjustified by costs. General Mike Cox to settle alleged also were sentenced to $9 million in leading to possible higher prices Gregory Curtner, a principal at The Detroit suit consolidates violations of the state Antitrust criminal fines earlier this year after for retailers and consumers. Miller, Canfield, Paddock and Stone claims from several federal juris- Reform Act. the companies pleaded guilty to “al- Dallas-based Reddy Ice Corp. is PLC who co-represents Kozak Enter- dictions to one court, as ordered Cincinnati-based Home City Ice Co. locating customers in the Detroit the third defendant in the Detroit prises of Oregon, Minn.-based last year by the U.S. Judicial Panel and Arctic Glacier International Inc. of metropolitan area and Southeast- civil lawsuit. Thomas Liquors and other retail on Multidistrict Litigation. West St. Paul, Minn., will pay ern Michigan,” according to a U.S. Attorneys for the three pack- plaintiffs in the case, said the Cox Chad Halcom: (313) 446-6796, $390,000 and $350,000, respectively. Department of Justice statement. aged-ice companies could not be settlement should have little [email protected] REAL ESTATE

AUCTIONS AUCTIONS AUCTIONS Luxury Lakefront Auction WATERFRONT AUCTION! Private Estate on Indian Lake

4786 Sherwell Drive Waterford, MI 1681 OTTAWA TRAIL COURT On-Site, Saturday, October 16th at 12 pm, Registration at 11am Open Houses: Saturday, September 25th, & Sunday, October 3rd 12-3pm OXFORD, MICHIGAN 48371 Elizabeth Lake Showplace! Once in a rare while will a truly magnificent home such as this be SUN, SEPT. 19, 2010 at 2 pm available. Never on the market or offered before! Featuring gray cedar shingles and Fond du Lac on Preview and Registraon begins at 12 pm day of aucon the exterior. A professional chef designed this incredible island kitchen with a mix of traditional and OPENING BID: $1,100,000 Venetian Bay | 10 Units Selling Absolute contemporary styles. The master suite is a private getaway with a wall of windows and private Your own secluded private resort on Welcome to Venetian Bay, 2010 Development of the Year! Tuscany Square, the Medi- balcony. With 6138+/- square feet, 4 bedrooms, 4 car garage, library, sauna, theater room, and walk 13+/- acres, 2,200+/- feet of shoreline, terranean inspired condominiums offers the lifestyle you deserve with park areas that are -out basement with a full kitchen, it’s an entertainers dream. Don’t let Waterford’s best kept secret spectacular waterviews from every designed to host unique festivals, music concerts and family oriented outdoor events. slip away. The memories will last forever, but the auction is a once in a lifetime opportunity! Text window, private beach, gated entrance, Parkside Townhomes features biking, jogging or walking on Venetian Bay’s many miles “Waterford” to 90210 for more information! 3 levels, elevator, 10,800+/- square feet. of picturesque trails. Pre-Auction offers welcome! Online Bidding Available www.RoseAuctionGroup.com This home was built by proud crasmen in 2008 and is being offered exclusively at www.RoseAuctionGroup.com. Text “roseauction” to 90210 for more information. Rose Auction Group, LLC Beth Rose CAI Auctioneer aucon. 877.696.7653 2009 Michigan State OPEN HOUSE DATE & TIME American Eagle Auctions & Appraisals Auctioneer Champion Ken Lindsay, CAI, BAS ID#ID# 28010000782801000078 Thursday, September 9, 2010 from 6:00 pm - 8:00 pm License # AU3999/AB2865 Thursday, September 16, 2010 from 6:00 pm - 8:00 pm View More Details Online at COMMERCIAL PROPERTIES INDUSTRIAL PROPERTY www.pamelaroseaucon.com Luxury Real Estate Auction Need A Brochure? MOBILE HOME PARK -- MONROE COUNTY Call 1-877-462-7673 ONE-OF-A-KIND AVAILABLE NOW 3060 Stone Meadow, Milford Twp., MI Pamela Rose, Broker Auconeer AARE CAI (22) lots plus single fam rental home/laundry Auconeer CAI GRI bldg/paved roads. Good overhead lighting/all

©2010 Michael Murray 4,000 to 100,000 sq. ft. PAMELA K. ROSE AUCTION CO LLC MATURE TENANTS. Gross $89,838. NET CASH FLOW after expenses $62,474 prior to Also 10,000 & 25,000 sq. ft. debt service. Owner of 30 yrs retiring. $650,000 INDUSTRIAL PROPERTY less $150,000 Dn on L.C. by owner. Free Standing Bldgs w/truckwells. DEAL DIRECT 734-673-7780 INDUSTRIAL SPACE AVAILABLE or 734-675-8911 1 Mile from Metro Airport IN MACOMB TWP. ** INCREDIBLE RATES ** INDUSTRIAL PROPERTY REA CONSTRUCTION Open Houses: HIGH-TECH OFFICE/INDUSTRIAL (734) 946-8730 Wednesday, September 8th 4-7pm New development Finish to suit Also Heavy Industrial Sunday, September 12th 12-3pm 2,860sf, 3,483sf & combine up to 10,449sf Rail - Easily Accessible - Low Rates Land Available ———————————————— Available: On-site Mgmt - Exterior Storage 70,700sf CORPORATE IMAGE 83,719 SF www.waretechindustrialpark.com Held on-site Sunday, September 19th at 1pm CATELLUS GROUP, LLC www.reaconstruction.net Truck wells, crane footings, full AC ———————————————— 43,000 SF (810) 695-7700 This extraordinary mansion situated on a 2.75 acre wooded lot is overflowing with 55,700sf WITH HEAVY POWER elegance and distinction. At 8622+/- sq. ft., this residence features 5 bedrooms, 5 Truck wells, crane footings MISCELLANEOUS baths, 2 lavs, library, custom spiral staircase, 2000 bottle wine cellar, sauna, and ———————————————— FOR SALE home theatre, where no expense has been spared. A finished lower level walkout ALSO BUILD TO SUIT AND VINEYARD AND WINERY FOR SALE with 2nd kitchen takes you to your backyard sanctuary with a custom swimming INDUSTRIAL LAND AVAILABLE pool, sports court, fire pit, and terrace. 6 car heated garage with portico and so Picturesque vineyard and winery in Upper Mid- much more! Text “Waterford” to 90210 for more information! West passionately developed over past 20 years. Beth Rose Rose Auction Group, LLC CAI Auctioneer Beautiful operation producing acclaimed wines. The soils, exposure, altitude and location on the 877.696.7653 2009 Michigan State OFFICE/MEDICAL COMPLEX 45th parallel (also home to Bordeaux, Rhone, RoseAuctionGroup.com Auctioneer Champion FARMINGTON HILLS, MI ID#2801000078 PHONE 586-677-1111 Piedmont and Willamette wine regions) make this www.quadratedevelopment.com *Five Building Complex setting prime for quality cool climate wine grapes. *21,000 Square Feet About 150 total acres, 50 acres of premium vines Call Us For Personalized *Tenants in Place now producing. *Ideal for Condominium Development Service: (313) 446-6068 *High Visibility Location Includes winery, picturesque tasting room, three FAX: (313) 446-1757 residential homes, three barns and a storage E-MAIL: [email protected] warehouse. The winery has a recognized INTERNET: winemaker and top quality wine making www.crainsdetroit.com/section/classifieds For More Information Call: equipment. Advanced development expected to See Mason L. Capitani or Garrett Middlekauff lead to near term profitability. Crainsdetroit.com/Section/Classifieds 248-637-9700 For more info contact: Dan Butler, for more classified advertisements www.Lmcap.com (616) 855-2604, [email protected] 20100913-NEWS--0022-NAT-CCI-CD_-- 9/10/2010 4:51 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS September 13, 2010

(9,@6<;/,790+, Fitness chain bulks up revenue 6-;/,7(*2& CoachMeFit expects to hit $1M mark this year

BY CHAD HALCOM CRAIN’S DETROIT BUSINESS Ann Arbor-based CoachMeFit LLC is on pace for a landmark year, with total revenue expected to top $1 million for the first time for its four Michigan studios. The chain of personal training centers that Lindsay Bogdasarian founded 10 years ago is nearly 20 percent ahead of revenue for this (WSH`LYZULLKLK time last year, including 12 per- cent estimated growth at the origi- 0UX\PYLVUSPUL nal studio in Ann Arbor that she opened in late 2001. “A majority of the growth we’ve seen ... has been growth during this MARKETING PR DESIGN NEW MEDIA ‡ ‡ ‡ calendar year,” identitypr.com/careers said John Bog- ALAN WARREN dasarian, Lind- Owner Lindsay Bogdasarian opened her original CoachMeFit training center in say’s husband Ann Arbor in 2001. There are four locations now. and vice presi- tle more with the new year,” he She expects 2010 will be about a dent and CFO of said. break-even year, much like 2009. CoachMeFit’s The Bogdasarians own and oper- CoachMeFit estimates franchise franchising cor- ate the Ann Arbor studio as a fran- startup costs will range from poration. chise and estimate it averages 600 $106,000 to $261,500, including a A graduate of client sessions per month, while the $12,500 initial franchise fee and the University of rest of the CoachMeFit franchises $2,500 in software installation fees, Bogdasarian Michigan School average 200-400 per month. according to its franchise disclo- of Kinesiology in 1999, Lindsay Bog- Sessions are generally $55-$75 sure document. dasarian, CoachMeFit’s president, each, but vary with the franchise Franchisees pay 5 percent of rev- held other fitness jobs in Michigan and volume of sessions ordered. enue to the franchisor company, and in Chicago before founding CoachMeFit’s new growth could and generally must locate in com- her own company in the basement also reflect a broader recovery for munities with $90,000 or more in av- of the couple’s Ann Arbor home. the fitness industry. erage household income and popu- Almost immediately she hired The gym and health fitness club lations of at least 75,000 within a other trainers to allow her to de- industry had an estimated $23.6 bil- three-mile radius of the studio. vote more time to management and lion in revenue nationwide in 2009, Lindsay Bogdasarian also said business development, she said. off 2.3 percent from the previous access to a mix of committed train- Her Ann Arbor studio now uses year, according to a report pub- ers also help make a franchise suc- 11 trainers and a studio manager, lished by International Business In- cessful. while others work at franchise lo- formation Systems, or IBISWorld. “If some of the trainers are do- cations that opened in Birming- But the firm projects the indus- ing 30 sessions per week, that can ham, West Bloomfield Township try is expanding again amid eco- mean 40-48 hours a week they and East Grand Rapids in 2008. nomic recovery, with $23.9 billion spend in the studio,” she said. “We try to make it a personal- revenue or 1.4 percent growth pro- “So we also have some who just ized environment for each client,” jected for 2010. do 10-15 hours a week, and some of she said. Valencia Hamilton, a former au- them might be moms who wait for CoachMeFit originally had two ditor at PricewaterhouseCoopers LLP husbands to come home (from studios, in Saline and in Ann Ar- and later DTE Energy Co. until she work) and then train in the bor, where Bogdasarian shared was downsized in 2008, opened evenings, and they come in fresh space with her husband’s commer- Body and Mind Fitness LLC in down- and excited late in the day. cial real estate office at Preview town Ferndale later that year. “That’s better for their sched- Properties Inc. Hamilton said she has looked ules, and it appeals to some of our The Saline studio closed about into a similar franchising model customers as well,” she said. five years ago and merged with the for her own business as a long- Chad Halcom: (313) 446-6796, growing Ann Arbor operation, and term goal. [email protected] John Bogdasarian moved his real estate practice to Preview’s corpo- rate headquarters in Brighton. The company moved to a fran- chising structure in 2007. After the first three new studios, CoachMe- Fit had plans for locations in Troy, Novi, Northville, Plymouth and elsewhere. But lack of financing for small businesses slowed growth, along with what John Bogdasarian called a search for the “right peo- ple” with both business and exer- cise backgrounds. “We are really looking for the people who not only love fitness and training but have a level of business acumen.” The current franchises contin- ued to grow and add client ses- sions, particularly this year. Derek DiGiovanni, president and co-owner of CoachMeFit-Birming- ham LLC, recalls “things were a bit crazy” in late 2008, but business has grown consistently since then. “We expect another little bump when people get their kids back in school and have more control of their schedules. Then, maybe a lit- 20100913-NEWS--0023-NAT-CCI-CD_-- 9/10/2010 6:01 PM Page 1

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 23 Yankee: Museum ready for takeoff ■ From Page 3 ging down the museum’s decision- the annual air show the air muse- coffee!! making, said Diana Kern, vice GALA AND OPEN HOUSE um hosts at Willow Run Airport president of programs at Nonprofit Tickets to the Oct. 9 gala at Willow brought in nearly $2 million in Enterprise at Work. Run Airport are $250 per couple. revenue last year, Hotton said. opportunity!! “There were lots of decisions be- The free Oct. 10 museum open That’s up from total revenue of ing made based on what the mem- house will include WWII re- $1.4 million in 2008. bers wanted to see, rather than enactments with tanks brought in “We would like to see ... 10,000 to interested?? what was in the best interests of for the event, sky divers and food 15,000 members four or five years the museum in terms of serving vendors. For more information on from now” and be able to provide the public,” Kern said. both events, go to them benefits much like The Henry franchise?? www.yankeeairmuseum.org. Moving to a directorship envi- Ford in Dearborn does, with dis- ronment creates structured gover- The new Yankee Air Museum counted gift shop sales, free or dis- includes: nance, with the museum recruit- counted tickets and other benefits, ing board members with specific Ⅲ A wooden and fabric WWI Spad he said. Contact us at airplane being put together by skills and resources. The Yankee Air Museum “has volunteers. (517) 913-1987 or In 2008, it began naming to the the most volunteers I’ve ever seen Ⅲ A full-size B-24 being 11-member board influential direc- for a nonprofit,” Kern said. reconstructed. [email protected] tors such as Jack Roush, founder, The change in direction says, Ⅲ A tabletop model of the Willow CEO and co-owner of North Caroli- “‘We respect our membership, but Run Bomber Plant’s assembly line. na-based Roush Fenway Racing; and at the leadership level, we’re going Ⅲ Three aircraft simulators — two Bill Rands, past president of the to bring in leaders that have pas- of the cockpit and one simulating www.biggby.com Detroit River Regatta Association and flight. sion for the mission,’’ Kern said. organizer of the Gold Cup races in Sherri Welch: (313) 446-1694, Ⅲ WWII aircraft engines on display. Detroit. Ⅲ [email protected] Last year, the organization A Vietnam helicopter saved from the fire and other non-flying rewrote its bylaws. This year, it airplanes stored outside the hangar, named Hotton executive director including a B-52 bomber, an F-4 to oversee the museum’s opera- Phantom Jet that served in Vietnam, tions and four other employees. and F-86 and F-84 fighters. This summer, after raising Source: Yankee Air Museum $1 million, the Yankee Air Muse- um and its fundraising arm, the The Michigan Aerospace Foun- Michigan Aerospace Foundation, dation and Yankee Air Museum opened the David and Andrea have raised about $6 million for Robertson Education Center in a the larger project over the past six renovated 1938 schoolhouse moved years, said president Dennis Nor- to the east side of the airport from ton, who is founder of the Yankee another part of its campus. Air Museum and owner of Ann Ar- The new building came on the bor-based Norton Real Estate Co. market just as the museum and The new building is meant to Michigan Aerospace Foundation serve as only a temporary home were attempting to raise about for the museum, Hotton said. $10 million for the first phase of “We’d like to start construction the project to construct a new on a new hangar on the east side of home for the museum and a new the airport next year to house the hangar to house the three planes it flyable airplanes,” at a projected was able to save from the fire: two cost of $3.5 million to $5 million. WWII bombers — a B-17 and B-25 Currently, the three flyable his- — and a C-47 transporter. toric airplanes are in leased The General Motors Foundation hangars at Willow Run and Grosse has contributed $1 million to the Ile airports. campaign, and numerous individ- “We take the B-17 all over the uals and organizations have made country ... people pay ($425 each) to contributions, including Dave and ride in them,” said Hotton, who pi- Andrea Robertson, the husband lots the aircraft. “We can generate and wife racing team that make up sizable income by flying the B-17; Robertson Racing LLC; DTE Energy now we’ve started to market the B- Foundation; the Louisville, Ky.- 25.” based C.E. & S. Foundation Inc.; Envi- Those flights, membership fees ronmental Quality Co.; and the Lloyd from the museum’s 2,500 members, and Mabel Johnson Foundation. donations and admission fees to

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Page 24 CRAIN’S DETROIT BUSINESS September 13, 2010 Budget deal: Agreement would yield match for roads funding ■ From Page 1 use of toll credits to reduce the federal match is “the good news,” enough support for such measures lion out of the state’s general fund. ing penalties for businesses and amount of bonding. Hardiman is but the group is not in favor of the prior to the November elections. Gov. Jennifer Granholm’s office individuals that have delinquent chairman of the Senate Appropria- borrowing approach. “We’re putting as much pressure confirmed that there is agreement tax liabilities and settle their debt. tions Committee’s subcommittee “What we’re talking about is on the Legislature as we can to force to fully match the federal trans- Taxes affected would include on transportation. putting your mortgage on your a long-term resolution after the elec- portation funds, but she would not Michigan Business Tax, the for- Toll credits are federal credits credit card,” Ledbetter said. tion is over,” Ledbetter said. discuss details. mer Single Business Tax, income, that in Michigan are based on two In addition, MDOT expects that Gonzales said he would like in the Last week, Granholm and House sales, use and tobacco taxes. elements: tolls collected at the the $84 million revenue shortfall it post-election “lame duck” session to and Senate leaders reached a Shortening the time for finan- Blue Water, Mackinac and Inter- faces will be even larger next year, see the Legislature come up with a broad state budget agreement con- cial institutions and others to trans- national bridges; and the amount when the state would also need to transportation funding package. taining many pieces that need leg- mit unclaimed property to the state. of money the state spends to main- repay the one-year bond. But he said the short-term note islative approval. Liquor law changes that in- tain those bridges. “So they’ve only exacerbated the and other parts of the current The fiscal 2011 budget solution clude allowing stores that sell The credits allow the state to ac- problem,” Ledbetter said. “We’re $84 million agreement are “a good includes: packaged liquor to offer customer cess federal money without com- borrowing money for operating ex- solution because that’s what we An early retirement package tastings, allowing new types of ing up with matching funds. penses. We need a user fee-based have available at this time” and for state workers that includes a promotional packaging, in-store The proposed bonding concerns system which will pay for our Michigan needs to do all it can to temporary enhanced retirement redemption of instant rebates and the Michigan Infrastructure and roads and bridges.” avoid walking away from the fed- benefit and a 3 percent employee coupons, a new type of license for Transportation Association, which MITA and others have called for eral funds. contribution for retiree health care owners of private wine and liquor has been among groups in Lansing action on a package of transporta- The Senate had previously costs, phased in over five years. collections to auction their stock, pushing for a long-term, compre- tion reforms that include increas- passed an MDOT budget that made Cuts of 3 percent in state de- and stepped-up enforcement and hensive solution to Michigan’s es in Michigan’s gas and diesel $84 million in cuts and shifts in partments. penalties for illegally importing chronic road-funding needs. fuel taxes, and altering and raising other transportation areas to come A freeze in state revenue- and selling liquor in Michigan. Keith Ledbetter, director of leg- vehicle registration fees. up with the money. The House sharing levels. Amy Lane: (517) 371-5355, islative affairs, said arriving at the But politically, there’s not passed a version that took $84 mil- A tax amnesty program waiv- [email protected] Stem cell: Funding fight key topic Bridge: Bill no unifier ■ From Page 3 ■ From Page 3 A panel on “The NIH Guide- now, and up to $20 million in search totaling $6.8 million. Mor- Group Inc., in an e-mail to Crain’s. state bridge authority itself to is- lines and Sherley v. Sebelius: Im- grants for new projects are on hold. rison was awarded $744,000 to ex- MDOT itself is saying very little sue revenue bonds, therefore in- plications for the Future of Stem- “The cloud over stem cell fund- amine the potential for using em- about the revised bill at this point. curring risk,” he said. Cell Research.” ing remains in bryonic stem cells for treating “We are happy to have his bill to Two messages seeking comment A panel “Empowering the place. This Hirschprung’s disease, a birth de- review and we look forward to do- were left for Gilbert. Stem Cell Advocacy Movement,” won’t go away fect that affects regulation of in- ing that and meeting with Sen. Canada has offered to pay the which includes Danny Heumann, until we get a testinal function. Gilbert to provide our feedback,” projected $550 million U.S. cost of who was active with the Michigan legislative solu- Federal money that has been Bill Shreck, MDOT’s director of the span. The money would cover Citizens for Stem Cell Research and tion,” said disbursed can continue to be communications, said in an e-mail. capital costs not otherwise cov- Cures, a group that helped pass Bernie Siegel, spent, but further disbursals MDOT is one of the four U.S. and ered by the private sector. Proposal 2 in Michigan in 2008, executive di- were halted in August. Canadian government partner Other than saying the money which allowed embryonic stem rector of the “I was very pleased to hear agencies that seek to build the would be repaid via Michigan’s cell research in the state. Florida-based there is at least a temporary ban bridge to link Ontario’s Highway share of the tolls, details of the of- A luncheon address on the Genetics Policy on the lower court decision, but I 402 and I-75 between Detroit’s in- fer remain unclear, which has Siegel morality of embryo use by Harvard Institute, a non- remain very cautious and con- dustrial Delray neighborhood and sparked additional skepticism in University philosopher Lois Guenin. profit that organizes the summit. cerned,” said Eva Feldman, co-di- Windsor’s Brighton Beach area. Lansing, where lawmakers must An “Embryonic Stem Cell “Congress must act to do away rector of the A. Alfred Taubman Sen. Ray Basham, D-Taylor, a approve MDOT’s financial partici- Research Oversight Committee with Dickey-Wicker forever. For Medical Research Institute at the longtime DRIC advocate, called pation in the project. Workshop” moderated by Dr. the regenerative-medicine com- UM medical school. Gilbert’s retooled bill “a good A local transportation insider James Shayman, UM associate munity, Sherley v. Sebelius is Last May, she announced in start.” familiar with the bill and the vice president for research and a what Roe v. Wade was for those Crain’s that she would be raising “The revised plan is more specif- bridge situation, but who agreed to professor in the departments of who believe in reproductive $1.5 million from private donors ic to DRIC only. I can live with speak only on condition of internal medicine and pharma- rights.” to fund animal trials for a stem that,” he said. anonymity, said the revised legis- cology. Twice during the previous ad- cell-based treatment for Basham believes the bill will be lation could be viewed as a poison On Aug. 23, U.S. District Judge ministration, Congress passed Alzheimer’s, a progressive degen- debated and voted upon this fall, pill for DRIC supporters. Royce Lamberth of the District of the Stem Cell Research Enhance- erative disease that severely im- but also expects more squabbling “I find it hard to believe they’ll Columbia granted a preliminary ment Act to allow federal funding pacts brain function and affects over it. find it acceptable,” he said. “The injunction blocking further fund- of embryonic stem cell research. 5.3 million in the U.S. “We have a good sense that we’re bill doesn’t allow any state money ing of stem cell research by the Both times it was vetoed by Presi- That decision was based on ear- moving forward on this thing,” he to be spent on anything related to National Institutes of Health and dent George W. Bush. ly results of clinical trials at said. “I think there’ll be another (DRIC). They’re kind of getting other federal agencies. UM’s Morrison is scheduled to Emory University Hospital in Atlanta fight yet with Al (Cropsey).” what they ask for (because) they Last Thursday, the U.S. Appeals testify Thursday before a Senate on human patients with Lou Cropsey has repeatedly called say the traffic and toll revenue will Court in Washington issued a tem- committee about the importance Gehrig’s disease. Those trials use DRIC a “boondoggle” and leads the pay for everything.” porary stay of the ban. Opponents of federal funding for stem-cell re- neural progenitor cells, which chorus of GOP opposition that says Bill Shea: (313) 446-1626, of the funding have until Sept. 14 search. are stem cells that have devel- the project’s traffic projections are [email protected] to file a response to the appeals “The injunction against fund- oped beyond the embryonic stage. flawed and that backers’ claims that court ruling, and the U.S. can file ing was like a nuclear bomb for Feldman said those trials — the tolls will cover its costs are wrong. a follow-up response on Sept. 20. research,” said Morrison. seventh patient will be injected Peter Samuel, editor of Mary- The Aug. 23 ruling came in the Morrison said he found out last with stem cells on Oct. 20 — land-based industry newsletter lawsuit Sherley v. Sebelius, filed Thursday that NIH won’t process aren’t affected because they and website Tollroad News for the by, among others, Dr. James a $1.4 million, five-year training are paid for with private dona- past 15 years, has closely followed Sherley, Dr. Theresa Deisher and grant for UM, an extension of a tions. the DRIC debate and called the re- BANKRUPTCIES the Christian Medical Association. grant that has been funded for 35 She said one grant her group vised legislation confusing. The plaintiffs claimed that new years to fund research by gradu- had been ready to file with the “It seems to be intended to shift The following businesses filed for embryonic funding guidelines an- ate students. The grant involves NIH, for $1.25 million over five risks of losses to the private entity, Chapter 7 or 11 protection in U.S. nounced last year by NIH violated up to 40 professors at UM, said years for embryonic research, but it seems to me poorly drafted Bankruptcy Court in Detroit Sept. 3-9. the 1996 Dickey-Wicker Amend- Morrison. has been put on hold. and in need of clarification,” he Under Chapter 11, a company files for ment, which Congress passed to Just two of them are involved in Feldman and Taubman will said. reorganization. Chapter 7 involves prohibit federal funding for any embryonic research, but that was share the stage for 30 minutes on Specifically, the language creat- liquidation. research in which a human em- enough to cause the rest of the pro- the opening day of the summit, ing the authority is vague and H&HM Inc., 1624 Silvery Lane, Dear- bryo was destroyed. fessors’ students to lose funding. with Taubman talking on policy doesn’t address Canadian repre- born, voluntary Chapter 11. Assets: Sherley and Deisher are re- Morrison said UM is still as- issues and Feldman on her clini- sentation. $14,488; liabilities: $70,017. searchers who use adult stem sessing potential grant losses, but cal trials. Samuel also said the language Dahlquist Ryan Builders Inc., 8500 Fer- cells and claimed the new guide- he said he knew of six grants for The second day of the summit, creating the bridge authority does- ry Road, Grosse Ile, voluntary Chap- ter 7. Assets: $1.1 million; liabilities: lines would limit their ability to embryonic stem cell research to- Feldman will moderate a 90- n’t do a good job protecting taxpay- $2.7 million. get funding. taling $4 million that would be minute panel on current and fu- ers — something Gilbert has Earl Stevenson Corp., 4651 W. Jeffer- The federal government esti- lost in the next year. ture clinical trials and stem-cell vowed to do. son, Ecorse, voluntary Chapter 7. As- mates that $54 million in grants the Last October, the school an- therapies. In fact, the bill may leave the tax- sets: $200; liabilities: $115,651. NIH had been expected to renew in nounced it had received 13 federal Tom Henderson: (313) 446-0337, payers more vulnerable, he said. September will not be renewed stimulus grants for stem cell re- [email protected] “It seems to leave it open for the — Shawn Wright 20100913-NEWS--0025-NAT-CCI-CD_-- 9/10/2010 6:04 PM Page 1

September 13, 2010 CRAIN’S DETROIT BUSINESS Page 25 Project: Judge orders construction in Dearborn www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or enough public documents to fill else these days, but we are not fad- [email protected] Almost-preferred developers EXECUTIVE EDITOR Cindy Goodaker, (313) 446- two boxes as attorneys have filed ing away.” 0460 or [email protected] The project was divisive from motions, counter-motions, claims The bankruptcy move did not sit MANAGING EDITOR Andy Chapelle, (313) 446- the start. and counterclaims. well with the city. Several days af- 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette Then-Mayor of Dearborn A key ruling came in December ter the filing, the city issued a Smith, (313) 446-1622 or [email protected] Michael Guido picked Bingham 2009 when Judge Michael Sapala statement that the move was mere- ENTREPRENEURSHIP EDITOR Michelle Darwish Farms-based developers Peter Welsh, (313) 446-1621 or [email protected] determined there is no merit to the ly a ploy to avoid the fees assessed COPY DESK CHIEF Gary Piatek, (313) 446-0357 Burton and Robert Katzman for Burton-Katzman argument of eco- by the court. or [email protected] the project in 2002 but was forced nomic conditions making the de- It’s uncertain whether bank- ASSISTANT NEWS EDITOR Jeff Johnston, (313) to concede to the City Council, 446-1608 or [email protected] velopment impossible to complete. ruptcy will end the fight. DATA EDITOR Anne Marks, (313) 446-0418 or which instead backed Dearborn- O’Reilly Burton “Breach of the development The city has pursued a legal strat- [email protected] based D.J. Maltese Co. agreement is not excused by the egy to “pierce the corporate veil” WEB EDITOR Christine Lasek, (313) 446-0473, After a year of stalled progress, [email protected] peared for condos, office space or defense of impossibility,” he wrote and pursue the individuals person- WEB DEVELOPER Steve Williams, (313) 446- Maltese was forced to back out of hotels, Burton-Katzman attorneys in his ruling. ally involved with the legal entities. 6059, [email protected] the deal in 2003 and Burton-Katzman EDITORIAL SUPPORT Robertta Reiff (313) 446- wrote in a Sept. 18 filing. In addition, Sapala ordered that Sapala added individual in- 0419, YahNica Crawford, (313) 446-0329 Development Co. was able to pur- “The Dearborn economy has ab- construction start on the project vestors to the suit: Burton, Katz- NEWSROOM (313) 446-0329, FAX (313) 446- chase the land and begin work. solutely no demand for these by April 3, later extending that to man and three other investors: 1687 TIP LINE (313) 446-6766 Maltese was backed by John buildings,” attorneys wrote. Oct. 1. While a trial date has not Charles DiMaggio, Laurence Goss REPORTERS “Jack” O’Reilly, head of the city “Even if some demand existed, been set, Sapala already has or- and Steven Bentley. However, there Daniel Duggan: Covers retail, real estate and council at the time and currently hospitality. (313) 446-0414 or there is literally no financing dered $5 million in damages be has been no ruling as to whether [email protected] mayor of the city. available to fund construction. paid to the city to cover initial debt damages will be assessed to them. Jay Greene: Covers health care, insurance and the Under the development agree- environment. (313) 446-0325 or This is not a situation in which an payments on the parking decks, And a trial date has not been set. [email protected]. ment, Burton-Katzman was to economic downturn has made per- back taxes and other fees. The case represents the stress Chad Halcom: Covers law, non-automotive build 48 condo units, a retail cen- manufacturing, defense contracting and Oakland formance of a contract simply created when developments fund- and Macomb counties. (313) 446-6796 or ter and two midrise buildings for more difficult or more expensive, ed through public and private [email protected]. residential, office or hotel use. Bankruptcy or avoidance? Tom Henderson: Covers banking, finance, but rather an unprecedented eco- sources fail, said Gibbs. technology and biotechnology. (313) 446-0337 or In return, the city of Dearborn nomic collapse that has truly made On Aug. 26, Burton, Katzman TIF and other programs remain [email protected]. agreed to borrow money to build Nancy Kaffer: Covers small business, the city of performance under the develop- and other investors in the project an important tool, when used cor- Detroit, Wayne County government. (313) 446- two parking decks, with the $12 ment agreement impossible.” filed Chapter 7 bankruptcy for the rectly, he said. 0412 or [email protected]. million cost repaid by the incre- Bill Shea: Covers media, advertising and The city not only is left with the three business entities named in “Too many cities in United marketing, entertainment, the business of sports, mental revenue produced through debt for two parking decks, but also the suit: West Village Commons LLC, States have taken on all of the risk and transportation. (313) 446-1626 or a tax increment financing agree- [email protected]. no office building, condo building Westminster Homes LLC and Burton- with projects and let developers Nathan Skid: Multimedia reporter. Also covers the ment. In a TIF the new tax revenue or hotel to bring enough traffic to Katzman Development Co. take all of the profits,” he said. “In food industry. (313) 446-1654, [email protected]. created by improved properties is make use of the parking decks. Listed among the liabilities for some cases, where a project is Sherri Begin Welch: Covers nonprofits and used specifically for a certain dis- services. (313) 446-1694 or [email protected] The city built the parking struc- the West Village LLC entity is $10 dreamed up on unreal demand, we Dustin Walsh: Covers auto suppliers, steel, higher trict; in this case, to pay back the tures before the developers put up million in loans from Bank of Amer- see a lot of problems now.” education and Livingston and Washtenaw bonds on the parking deck. the revenue-producing buildings. ica for the project and land valued In Dearborn’s case, Gibbs said counties. (313) 446-6042 or [email protected] That development agreement LANSING BUREAU “They insisted we do that,” said at $3.4 million. the city has density and a strong de- Amy Lane: Covers business issues at the Capitol, became the heart of a lawsuit filed O’Reilly. “We fulfilled our end, and Burton said the bankruptcy fil- mographic foundation, so it will at- telecommunications and utilities. (517) 371- 5355, FAX (517) 371-2492, [email protected]. or six years later. they didn’t get their end finished.” ing was an unfortunate reality as tract a project to the site some day. 115 W. Allegan, Suite 220, Lansing 48933. Burton, however, said he asked the development has become fi- “Using the money to build a ADVERTISING Impossible task the city to build one of the parking nancially insolvent. parking deck is a very smart deci- ADVERTISING DIRECTOR Marla Downs, (313) decks, not both. In a press release, Burton and oth- sion,” he said. “While some cities 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) In court filings, the developers er investors said the bankruptcies use development money for foun- 393-0997 point out that the financial condi- were directly related to the $5 mil- tains and parks and lavish build- ADVERTISING SALES Matthew J. Langan, Lori Complaints filed Tournay Liggett, Tamara Rokowski, Kimberly tions that developed in metro De- lion in fines already owed under ings, parking decks are a huge re- Ronan, Cheryl Rothe, Dale Smolinski troit could never have been fore- The city filed a complaint in Sapala’s judgment because the enti- source and will make the area CLASSIFIED SALES (313)-446-0351 seen. Such conditions emerged after Wayne County Circuit Court in May ties “cannot satisfy the obligations.” successful later on. MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- the retail development and 36 of the 2009 alleging breach of contract by Burton also pointed out that the O’Reilly is also convinced that 0416 or [email protected] 48 condo units were built — along Burton-Katzman for not construct- principals of the firm have 70 to 80 the land in question will be devel- EVENTS MANAGER Nicole LaPointe with the city’s two parking decks. ing the two buildings. other business entities created for oped, and the situation is being MARKETING ARTIST Sylvia Kolaski By the summer of 2007, city offi- Dearborn is asking the court to individual holdings. used as a learning tool. SALES SUPPORT Suzanne Janik, YahNica Crawford cials began questioning the pace of force completion of the buildings The group continues to have a “It helped us learn to structure CIRCULATION Candice Yopp, Manager. MARKETING COORDINATOR Kim Winkler the third and largest phase of the and award damages of $16.5 mil- portfolio of 5 million square feet these deals better,” O’Reilly said. PRODUCTION MANAGER Wendy Kobylarz project: two seven-story buildings lion for the outstanding debt on under ownership and manage- “We’ve done deals since then and PRODUCTION SUPERVISOR Larry Williams to be built between the two park- the parking decks along with un- ment, Burton said, and has not giv- they’re going smoothly, but we ne- CUSTOMER SERVICE ing decks. paid property taxes and fees. en other holdings back to the bank. gotiated differently.” MAIN NUMBER: Call (877) 824-9374 or write Ground was never broken on In the office of the Wayne Coun- “We are still here,” he said. “We Daniel Duggan: (313) 446-0414, [email protected] SUBSCRIPTIONS $59 one year, $98 two years. the buildings as demand disap- ty clerk, the case has produced have our struggles like everyone [email protected] Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. SINGLE COPIES: (877) 824-9374. REPRINTS: (800) 290-5460, ext. 125; (717) 505- 9701, ext. 125; or ashley.zander@theygsgroup .com. Hygieia: Startup creates device to help diabetics TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail [email protected]. ■ From Page 1 CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. said the data generated by DIGS al- investors in Michigan and the U.S. that track data supplied by patients gle said. “Patients use their own CHAIRMAN Keith E. Crain lows patients to change insulin It also is using a $340,000 grant over secure data lines. Using meters at home and send the data PRESIDENT Rance Crain SECRETARY Merrilee Crain dosages immediately rather than from the National Institutes of Health telemedicine, patient data is ana- through their computer to our por- TREASURER Mary Kay Crain wait up to 90 days to see a physi- to help fund a clinical trial in Min- lyzed by physicians and nurses who tal, where the numbers are seen by Executive Vice President/Operations William A. Morrow cian and then change their dosage. neapolis with 60 patients. advise patients on care changes. doctors or nurses in clinics.” Group Vice President/Technology, Hygieia’s DIGS, the size of a Besides Hodish, who is Hy- “As far as we are aware, no one Several studies have concluded Manufacturing, Circulation Robert C. Adams BlackBerry, analyzes blood sugar gieia’s medical consultant, is developing a standalone solu- that reducing blood-sugar levels Vice President/Production & Manufacturing in a way very similar to tradition- Bhashan said Hygieia has six full- tion like ours,” Bhashan said. can reduce health care costs. Dave Kamis Chief Information Officer al glucose monitoring devices. time employees; another six are Jim Mingle, CEO of MyCareTeam, For every 1 percentage point de- Paul Dalpiaz Patients apply a drop of their employed part time. a Chelmsford, Mass.-based telemed- crease in blood-sugar HbA1c lev- Corporate Circulation/Audience Development Director blood on a test strip and insert it If Hygieia receives sales approval icine software company, said the fu- els, the National Council of Aging es- Kathy Henry into the device. But instead of from the U.S. Food and Drug Adminis- ture of diabetic care is patients us- timates annual savings of $1,200 G.D. Crain Jr. Founder (1885-1973) reading out blood-sugar data, the tration early next year, Bhashan ing devices that help them adjust per person in health care costs. Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: DIGS reads out the amount of in- said the company plans to hire sev- their dosages regularly. HbA1c is a metric used to measure 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 sulin the patient should inject. eral more people when the compa- “People are starting to get real- long-term blood sugar control. Cable address: TWX 248-221-5122 AUTNEW DET “We created the device like a ny begins to sell the product. It has time information to change their “Diabetes is a growing epidem- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the ground positioning system so pa- contracted with a Korea-based man- dosages,” Mingle said. “It helps ic, and we are not training special- third week of January, a special issue the fourth tients can adjust their therapy on a ufacturer to produce the DIGS. improve quality and outcomes. We ists as fast as the disease is grow- week of August, and no issue the third week of December by Crain Communications Inc. at 1155 daily basis,” Bhashan said. “Like a With 20 million people suffering and others have proven it works.” ing,” Bhashan said. “The future Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing GPS, you tell the device where you from diabetes worldwide, Bhashan MyCareTeam also uses telemed- must include automatic solutions. offices. POSTMASTER: Send address changes to want to go, it creates a master plan projects first-year sales of $3 mil- icine systems to help patients mon- Our solution is the first step. Ten CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- and then adjusts the plan to your lion and expects sales to reach itor their blood pressure, choles- years out, some people will require 9732. GST # 136760444. Printed in U.S.A. current (blood-sugar levels).” $75 million in three years. terol and weight, Mingle said. additional solutions.” Entire contents copyright 2010 by Crain Communications Inc. All rights reserved. Over two years, Hygieia has Bhashan said Hygieia’s competi- “We interact with patients Jay Greene: (313) 446-0325, Reproduction or use of editorial content in any raised about $1 million from private tors are telemedicine companies through a care team portal,” Min- [email protected] manner without permission is strictly prohibited. 20100913-NEWS--0026-NAT-CCI-CD_-- 9/10/2010 6:06 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 13, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 4-10

Domino’s founder to slip in be in Oakland Mall, Westland from bid fixing and money MCC gets $1.4M Center, Lakeside Mall, South- laundering to illegal dump- for anniversary breakfast land Center, Hampton Village, ing and being a felon in Lawyers may Hunters Square, Howell Out- possession of firearms, in Domino’s Pizza founder and Catholic philanthropist to start auto lets and Macomb Mall. connection with the Gar- Thomas Monaghan will make Ⅲ Shelby Township- den View Estates project at a rare local appearance this tech center based Leone Construction Co. the former Herman Gar- be Eminem’s week for an invitation-only has purchased the mostly dens site. If convicted, Fer- breakfast celebration of the undeveloped Macomb Town guson could face up to 20 arren-based Ma- Center residential develop- years in prison on the most 25th anniversary of the comb Community Domino’s Farms Office Park in ment at 24 Mile and Romeo serious charges and fines W College announced Plank roads in Macomb totaling more than $2.5 mil- Ann Arbor Township. that it has received a two- biggest fans Monaghan, who also once Township. Terms were not lion, federal officials said. year $1.4 million National disclosed. owned the Detroit Tigers, has Science Foundation grant to etroit’s most famous- kept a relatively low profile establish the Center for Ad- OTHER NEWS ly dysfunctional rap- locally since selling the vanced Automotive Tech- ECONOMIC NEWS D per may prove as Ann Arbor-based pizza Ⅲ Oakland County Exec- nology at the college. Ⅲ Data released by the troubling to the music in- chain for $1 billion in 1998 The center will offer ad- utive L. Brooks Patterson an- Southeast Michigan Council dustry through lawyers as and subsequently dedicat- vanced training to students, nounced that he, with sup- of Governments and ana- he is to the audience with ing himself to Catholic with hopes of offering seed port from Detroit Regional lyzed by the Building Indus- his lyrics. charities and education, es- money to innovative tech- Chamber President Sandy try Association of Southeast Eminem, who arrives in pecially Ava Maria University nology startups. Baruah, has called upon lo- Michigan said there were New York this week with and an entirely new town The NSF will provide an cal legislators to introduce 162 homebuilding permits Jay-Z in Bernero Snyder he’s building for a reported additional two-year $1.5 mil- a bill granting 50 percent issued in the region in the “Home $400 million in Florida. lion grant to MCC if the pro- tax breaks to businesses July, up more than 50 per- and Home” lican Rick Snyder, chair- The Frank Lloyd Wright-in- gram proves successful. caught in construction concert man and CEO of Ann Arbor spired office park is home cent from a year ago but zones that last more than tour that venture-capital firm Ardesta to 50 tenants and a herd of down 18 percent from June. three months in a first kicked off LLC, will appear back-to- bison on a 270-acre campus. ON THE MOVE Ⅲ The Southeast Michigan year, and a second year of at Comeri- back Friday morning and Purchasing Managers Index, relief if the project contin- ca Park in participate in individual 45- Ⅲ Marvin “Sonny” Eliot, compiled by the Wayne ues at least two months Detroit ear- minute question-and-an- Pollster forms new venture longtime local weather State University School of into a subsequent year. forecaster now at WWJ 950 Eminem lier this swer sessions moderated by Veteran pollster Ed Sarpo- Business Administration and Ⅲ The Livonia-based Ted month, Crain’s Detroit Business lus once again has his own AM, announced his retire- the Southeast Michigan and Jane Von Voigtlander also is the core of a new Publisher Mary Kramer business. ment. The chapter of the Institute for Foundation has made a gift court ruling that could re- and Grand Rapids Press Ed- Sarpolus, who in 2008 left Detroit na- Supply Management, slipped of $2.5 million to St. Joseph define royalty payments to itor Paul Keep. the Lansing-based Epic-MRA tive began from 56.7 to 54.2 in August, Mercy Hospital in Ann Ar- artists for music down- Later on Friday, Ford Mo- Corp. he co-founded to be di- his broad- meaning that the metro De- bor. The gift will name the loads. tor Co. Executive Chairman rector of government af- cast career troit economy is still grow- hospital’s new inpatient Ferndale-based FBT Pro- William Clay Ford Jr. will fairs for the Michigan Educa- in Detroit ing, but at a slower rate. center for women and chil- ductions LLC, which first close the two-day confer- tion Association, has in 1950 and dren on the hospital’s third signed Eminem back in ence, which is expected to departed the MEA and is a mem- floor in memory of Ted ber of the OURT NEWS 1995, is entitled to 50 per- draw some 500 attendees in- formed Target Insyght, a Eliot C Von Voigtlander, co-owner cent royalties on downloads cluding businesspeople, strategic consulting and Michigan Ⅲ Former Detroit city of Discount Tire Co., and his of the rapper’s recordings, lawmakers, local politicians survey and marketing re- Association of Broadcasters Councilwoman Monica wife, Jane, who established according to a new ruling and community leaders. search firm. Hall of Fame (2002) and the Conyers the foundation in 2006 after from the Ninth Circuit U.S. The conference is spon- Taking on Sarpolus’ MEA Michigan Journalism Hall of has report- her husband’s death. Court of Appeals. sored by the Grand Rapids duties is former director of Fame (2005). ed to a Ⅲ Royal Oak police say Defendant Universal Music Area Chamber of Commerce. communications Doug Pratt, Ⅲ Lois Beznos, president minimum- some of the 1,900 parking Group Recording Inc., which now the MEA’s director of of the security tickets issued during the argued for the more indus- public affairs in charge of all Chamber federal Ford Arts, Beats & Eats festi- try standard 18 percent cut, In case you’ve got a couple legislative, political and pub- Music Soci- prison in val will be dismissed be- has already sought a re- million lying around … lic affairs activities. ety of De- West Vir- cause some were issued in hearing. But it’s more likely troit for 15 ginia to permit-parking zones Are the days of $10,000 the ruling will stand as a years, said begin a 37- where the boundaries were condos over? Conyers precedent, said Henry CBS taps EMU band for she will month unclear, AP reported. While Birmingham was Baskin, entertainment attor- step down sentence for corruption, Deputy Chief Corrigan never as bargain-basement ‘Hawaii Five-O’ spots ney and president of Birm- Beznos to pursue The Associated Press re- O’Donohue said officials are as the rest of metro Detroit, Book ’em, Eagles: More ingham-based The Baskin other op- ported. It’s the same prison reviewing tickets on a case- a condo project in the tony than 4,400 miles from the Law Firm PC. portunities by the end of where Martha Stewart was by-case basis. suburb starts tours next Hawaiian Islands, the East- “(That decision) changes the year. sent after being convicted Ⅲ Lester Robinson, former week with ultra-high-end ern Michigan University everything. It’ll be chal- in a stock-trading case in CEO of the Wayne County Air- residences being put on the marching band can be seen lenged, but everyone real- 2004. Conyers admitted tak- port Authority, is one of three market. performing the theme from izes it’s really a question of COMPANY NEWS ing bribes to support a finalists for the same job at Just off Shain Park, the detective buddy series whether the Supreme Court Ⅲ sludge contract. Atlanta’s Hartsfield-Jackson 250 Martin On The Park build- “Hawaii Five-O” in regional Livonia-based TRW wants to hear a case like Ⅲ Toni Gilbert, a former International Airport. He also ing has seven residential TV ads. Automotive Holdings Corp. that,” he said. Detroit Public Schools pay- is reportedly one of four fi- units with asking prices al- The band is appearing (NYSE: TRW) announced FBT and Universal were roll manager who pleaded nalists for a similar post at most in the “if you have to with members of the Detroit its investors will sell represented by many of the guilty to conspiring to de- Tampa International Airport. ask ...” category of $2.2 mil- Fire Department and Detroit 7.5 million shares of its same attorneys who han- common stock in a public fraud the district of nearly Ⅲ Seattle-based Sur La dled the Eight Mile Style LLC lion “and up.” troubadour Ty Stone in spots The fifth floor of the that debuted this month on offering. The stock is held $380,000, has been sen- Table, a retailer for creative lawsuit in Detroit against by Automotive Investors LLC, tenced to 24 months in cooking and entertaining, Apple Computer Inc. over building is two 5,000-square- CBS affiliate WWJ-TV. an affiliate of New York- prison and ordered to pay is set to open Friday in iTunes downloads of Em- foot units each built as two- “It’s great exposure for the based The Blackstone Group more than $672,000 in resti- Troy’s Somerset Collection inem tunes. That case set- story penthouses. The sec- university and the band pro- LP. The private-equity firm tution, AP reported. mall. tled during trial late last ond floor is one gram,” EMU drum major acquired TRW in 2003 for Ⅲ The city of Hamtram- Ⅲ The New Economy Initia- year, and is estimated to be 5,300-square-foot unit. Chad Mielens said in a state- $4.7 billion, before taking ck on Sept. 3 sued the city tive has contracted Issue Me- worth $2 million. Troy-based TMW Enterpris- ment. es has been working on the CBS requested all 14 of its the company public in Feb- of Detroit in Wayne County dia Group to launch a new project since 2004, after buy- network-owned affiliates to ruary 2004. Circuit Court for breach of website to tell the stories of Bernero, Snyder to stump ing the unfinished building find musical groups to per- Ⅲ National toy retailer contract, claiming it is local entrepreneurs. The but not debate at forum in foreclosure then redevel- form the theme for use in Toys R Us Inc. plans to open owed $4 million in tax rev- site at www.semichigan oping it. the series’ promo ads. The and will be hiring for at enue from General Motors startup.com will track They won’t be debating, It’ll be showing off the University of Southern Cal- least eight temporary Co.’s Detroit-Hamtramck more than 400 new Michi- but Michigan’s two guber- views, architecture and ifornia marching band was metro Detroit locations, assembly plant, AP report- gan companies. natorial candidates will be called Toys R Us Express, as ed. high price tags at an invita- selected for nationally aired Ⅲ making their cases at this tion-only first-look event spots. part of a national rollout of Detroit contractor Bob- OBITUARIES week’s West Michigan Policy next week. The new “Hawaii Five- 600 so-called pop-up stores by Ferguson, owner and Forum in Grand Rapids. Or, instead of buying one O,” starring actors Scott for the Christmas shopping president of Ferguson’s En- Ⅲ Clarence Phillips, for- Democratic Lansing May- unit, you can buy an entire Caan and Daniel Dae Kim, season. The company’s terprises Inc., faces eight mer mayor of Pontiac, died or Virg Bernero and Repub- block of homes in Detroit. debuts Sept. 20. website says the stores will felony charges ranging Sept. 1. He was 69. DBpageAD.qxd 8/31/2010 12:18 PM Page 1 DBpageAD.qxd 6/1/2010 3:01 PM Page 1

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