Locals Buying Locally Convention Center

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www.crainsdetroit.com Vol. 24, No. 41 OCTOBER 13 – 19, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved Economy in turmoil THIS JUST IN Long-vacant Royal Oak site may get L.A. Fitness Credit unions ready to lend The long-vacant site just north of I-696 between Main Street and Wood- ward Avenue in Royal Oak As banks tighten may be the site of an L.A. Fitness operation next year. Site-plan approval for credit, credit unions the project has been granted by the Royal Oak Planning Dexter-based Commission, said Doug do booming business Bearclaw Coffee Hedges, a city planner for Co. won a spot in BY TOM HENDERSON Royal Oak. Construction the soon-to-open would start in the spring. CRAIN’S DETROIT BUSINESS Doubletree Guest Suites Fort Shelby The plan calls for a two- “Welcome to Community Financial, where we have story, 45,000-square-foot fa- partly because of millions to lend.” Doubletree’s cility on the site. That message on Plymouth-based Community Finan- commitment to Other development plans cial credit union’s phone system is repeated in one local companies. have come and gone for that fashion or another by the presidents and CEOs of cred- Debi Scroggins is site, which was home to an it unions around Southeast co-owner of auto dealership until the Michigan. More on the Bearclaw. 1980s, when the state Financial meltdown? Au con- NATHAN SKID/CRAIN’S DETROIT BUSINESS cleared the property during traire. economy construction of I-696. The Area credit unions say they ■ National stock state gave the land to the are flush with cash, have capi- slide spreads to city, and its fate involved tal-to-asset ratios most bankers region. Page 4. ideas from an aquarium to a only dream about, and are do- ■ SBA-backed Locals buying locally convention center. ing a booming business in auto loans plummet. The most recent was for a and home loans. Page 32. office, retail and hotel build- The only trouble they have, ■ ASE survey: Movement grows as economy shrinks ing called Gateway Office they say, is getting the word out Most employers Center, to be developed by expect cutbacks. to more people that they are sit- BY DANIEL DUGGAN to us, but also something that’s going to Livonia-based Schostak Page 32. ting on money and eager to loan AND NANCY KAFFER set us apart from the other hotels.” Bros. & Co. Inc. ■ GM wants it. CRAIN’S DETROIT BUSINESS Enter Bearclaw Coffee Co., an up-and- RenCen off the Schostak will act as de- “We have a ton of liquidity, coming Dexter-based coffee franchise co- books. Page 34. veloper for the L.A. Fitness and we’re really trying hard to Shannon Dunavent was close to a deal owned by Debi Scroggins. Dunavent liked ■ Corporate project and be landlord un- lend more,” said Mary McDon- to place a new Starbucks store in the soon- Bearclaw’s pitch; the local company won pension plans der the terms of a long- ald of Auburn Hills-based USA to-open Doubletree Guest Suites Fort Shelby blasted. Page 35. the business and will open in December term lease, said co-presi- Credit Union, which she said in Detroit. with the hotel. dent Robert Schostak. should do about $2 million in She liked the idea, but wanted to find a Bearclaw’s just one of several Michigan — Daniel Duggan first mortgages this month, double September’s total. local company to fill the slot. companies the hotel’s management opted Credit unions, through cooperative efforts to share “I’m looking at the other hotels in my to use. The Doubletree’s office furniture is Tax conference planned cost and risk, are even branching out to commercial competition set,” said Dunavent, general made by Zeeland-based Herman Miller Inc., manager of the Doubletree. “I wanted An array of tax experts See Credit unions, Page 34 something local, because that’s important See Local, Page 33 from Michigan and throughout the country, state officials and others are on tap for a Nov. 5-6 conference in Novi that will exam- ine Michigan’s business tax and additional tax issues. Flint has believers — with cash The 2008 Michigan Tax Conference at Rock Finan- cial Showplace is sponsored Six investors wanting to make a difference spur redevelopment by the Michigan Association of Certified Public BY DANIEL DUGGAN downtown area. Each put in $166,000 “Is it challenging? Yes. In this Accountants, in partnership CRAIN’S DETROIT BUSINESS — though they’ve all invested more economy? Especially. But we’re with the State Bar of Michi- since — and agreed to put their ener- making a difference,” said Philip The gist of most publicity coming gan taxation section and the gy behind developing new projects Shaltz, president of Flint-based Au- out of Flint is that it’s run-down, Michigan Department of Trea- for downtown Flint. tomation Inc. and a member of the jobless and broke. sury. The group now looks back on 12 Uptown Six. Registration information Someone should have told that to completed projects in the down- is available at www.mich the Uptown Six. town area. cpa.org, or by calling (248) Tired of the city’s bad reputation Those add to a slow, but steady, Streamline the organizations 267-3700. and its need for reinvestment, a trend of growth in the city and sub- The story of a small resurgence — Amy Lane group of Flint entrepreneurs teamed urbs: 23 major projects since 2003 in Flint is the story of a group of First Street Lofts, completed in See This Just In, Page 2 up in 2002 with the goal of buying up with a total investment value of 2006, are 100 percent leased. and rehabilitating properties in the $186.7 million. See Flint, Page 36

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NEWSPAPER Companies, Page 11 Page 24 20081013-NEWS--0002-NAT-CCI-CD_-- 10/10/2008 5:08 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 13, 2008

according to court records and Plans for the 23,000-square-foot CEO of Salsarita’s Inc., said each tional welcome center near the THIS JUST IN Keith Lerminiaux, deputy corpora- building call for three adjoining store generates revenue of about Ambassador Bridge. tion counsel for the county. greenhouses for what Planterra $750,000 to $800,000 annually. Fern Espino, development corpo- ■ From Page 1 At issue in the case were fees claims will be the largest selection — Nathan Skid ration chairman, said that the de- the Blues allegedly charged un- of tropical ornamental foliage, or- velopment corporation will hold Alta Lift Truck buys company der an administrative services chids and decorative pottery in the TechTown to support Mercado classes for would-be entrepre- contract with Oakland County, region and incorporate a number neurs, who upon completion Wixom-based Alta Lift Truck Ser- which is self-insured. of “green” features, including TechTown, the Wayne State Univer- would be eligible to become ten- vices Inc. recently bought The county had an administra- rainwater collection systems and sity-affiliated incubator and re- ants in the Mercado incubator. Wyoming-based Vans Industrial tive services contract with the use of recycled materials. search park for emerging high- Randal Charlton, TechTown’s exec- Equipment. Blues for 20 years to oversee hos- Planterra plans to use those tech companies, has signed an utive director, said his volunteer Terms of the deal, announced pital and health benefit claims for plants in its national interior land- agreement to provide support ser- advisors from the business com- Oct. 1, were not disclosed. its nearly 4,000 employees. It al- scaping business, but it also plans vices for the Mexicantown Communi- munity will be available to the Alta, founded in 1984 and now leges the fee was rolled into em- to open the conservatory to visi- ty Development Corp. Mexicantown tenants. operating with nine Michigan lo- ployee claims processed by the tors, free of charge, in the hopes The development corporation Charlton also said he will help cations, specializes in rental lift Blues, without the county’s that it will “grow to become … a wants to establish a business incu- Mexicantown get funding from trucks and other industrial vehi- knowledge or consent. significant botanical destination .” bator in its new Mercado and to at- nonprofits and state and federal cles and services. Blue Cross sought in 2006 to Planterra expects to open the tract more Hispanic-based retail agencies. Vans supplies and services in- add a rider into the language of a conservatory, which will cost businesses to the adjacent interna- — Tom Henderson dustrial equipment. proposed extension of the con- more than $3 million to build, in All Vans employees will be re- tract, explaining the fees. When fall 2009. tained as part of the deal, and the the county questioned the compa- — Sherri Begin CORRECTIONS combined company will operate ny about it, Blue Cross allegedly under the Alta name. Ⅲ In a Sept. 29 “This Just In” about Jim Croce stepping down as CEO told Oakland the practice had — Bill Shea Salsarita’s adds area locations of NextEnergy for a job in the private sector, NextEnergy Chairman been going on for years. Chris Rizik was quoted indirectly as saying discussions to choose a The case later spawned another Charlotte, N.C.-based Salsari- successor had hit a snag. Rizik says the word “snag” overstates the Blue Cross, Oakland County lawsuit in January filed by the ta’s Inc., parent company of the case; instead, the search is simply taking more time than anticipated. Road Commission for Oakland County fast-casual Mexican chain Salsari- Ⅲ The Detroit Tigers final 2008 attendance at Comerica Park was to settle lawsuit over fees with similar concerns on fees. ta’s Fresh Cantina, is adding two 3,202,645. A Page 1 story Oct. 6 reported the team-record attendance, Oakland County will settle its That case awaits a Dec. 8 trial date. locations to Southeast Michigan, set in the 78th of 81 home games, rather than the total number of fans. lawsuit alleging more than $16 Helen Stojic, media-relations di- one in Novi, the other in Romulus million in hidden fees by Blue rector for Blue Cross, declined to near Detroit Metropolitan Airport, Ⅲ A story on Page 30 of the Oct. 6 issue incorrectly stated Senate Bill Cross Blue Shield of Michigan for comment. bringing the number of Michigan 1519 will impact the film industry. It impacts economic development use of its health care network, — Chad Halcom locations to eight. incentives, but not films. The bill Sen. Nancy Cassis, R-Novi, is sup- rather than go to trial on the mat- Steve Alie, area representative porting is SB 1535, which puts a cap on film incentives. ter this week. for Salsarita’s, bought the territo- Ⅲ After Calendar on Page 21 went to press, Elizabeth Edwards can- Both sides were to return to Planterra building conservatory rial rights to Southeast Michigan celed her Oct. 15 speaking engagement due to her mother’s illness. A Oakland County Circuit Court for a Planterra Corp. plans to break and Northern Ohio. The two new new date for her speech is to be announced. Tickets will be honored for routine court hearing last week ground this week on the Planter- stores are set to open next year. the rescheduled date. For more information, call (248) 398-3400, ext. before trial, but instead entered a ra Conservatory in West Bloom- Each restaurant costs about 128, or visit www.metroparentevents.com. stipulation to dismiss the case, field Township. $350,000 to build. 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October 13, 2008 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S Will pot be OK in workplace? INDEX Jobs roundup: 18 tered patients with medical condi- companies get incentives to invest in Southeast Foes say Prop 1 may allow use, others disagree tions such as cancer, glaucoma, HIV, Michigan. Page 22. AIDS, hepatitis C and multiple scle- BY AMY LANE law clearly states that it does not re- Rock school on roll: Paul rosis. Green School of Rock CAPITOL CORRESPONDENT PROPOSAL 1 quire an employer to accommodate The law would create a registry of Music in Rochester has the ingestion of marijuana in the patients and an identification card become profitable in its LANSING — Newly organized op- The proposed law would permit workplace or to accommodate any system, through the Michigan Depart- first year. Page 25. physician-approved use of marijuana ponents to Michigan’s medical mari- employee who is working under the ment of Community Health, for patients Board battle: Fight looms juana ballot proposal are raising red by patients with medical conditions over possible sale or such as cancer, glaucoma, HIV, AIDS, influence of the drug. qualified to use marijuana and indi- flags about the proposal, citing nega- expansion of Tecumseh hepatitis C and multiple sclerosis. “We don’t believe it has any work- viduals qualified to grow marijuana. tive workplace implications if the Products. Page 28. The law would create a registry of place impact,” said Dianne Byrum, Public use of marijuana would be measure passes. spokeswoman for the Michigan Coali- prohibited, as it would be if someone Who knows Jack? State patients and an identification card Rep. A memo issued last week says the system, through the Michigan tion for Compassionate Care and part- is driving or in other specified situa- Hoogendyk proposed law permits marijuana use Department of Community Health. ner at Byrum & Fisk Advocacy Commu- tions. A person also could not under- is fighting in the workplace and warns of poten- Public use of marijuana would be nications in East Lansing. take any task while under the influ- not only tial consequences such as increased prohibited. Overall, the proposed law, which ence of marijuana, when doing so U.S. Sen. Carl Levin employer liability and the inability goes before voters Nov. 4, includes would constitute negligence or pro- for his seat to discipline employees who use act’s medical treatment purposes. provisions to permit physician-ap- fessional malpractice. in marijuana in accordance with the But backers of Proposal 1 say the proved use of marijuana by regis- See Marijuana, Page 37 Congress, but also his own low public Hoogendyk profile. Page 30.

These organizations appear in this Republican bill week’s Crain’s Detroit Business:

American Society of Employers . . . . 32 Karmanos Cancer Center...... 12 to limit film Bearclaw Coffee Co...... 1 Blue Cross Blue Shield ...... 29 Caponigro Public Relations ...... 29 Community Financial ...... 1 Community Choice Credit Union . . . 34 incentives still Commercial Alliance ...... 34 Compuware Corp...... 12 Credit Union One ...... 34 Detroit Edison Credit Union ...... 35 in production Detroit Renaissance Inc...... 13 Detroit School of Rock and Pop . . . 25 DFCU Federal Credit Union ...... 34 BY BILL SHEA Dickinson Wright ...... 16 CRAIN’S DETROIT BUSINESS Domino’s Pizza Inc...... 12 Doubletree Fort Shelby ...... 1 A bill capping Michigan’s six-month-old DTE Energy Co...... 12 film incentives at $50 million annually is- Ford Motor Co...... 12 n’t likely to reach the Senate floor until af- General Motors Corp...... 12 ter the election. Girl Scouts of Metro Detroit ...... 16 That’s the word from Matt Marsden, Health Care Consulting Solutions . . 29 press secretary for Senate Majority Leader Henry Ford Health System ...... 12 Mike Bishop, R-Rochester, who remains in Henry Ford Home Health Care . . . . 29 discussions with other Republicans on the Hispanic Business Alliance ...... 14 Masco Corp...... 12 merits of the legislation. MEGA ...... 22 Right now, the state Michigan Business Connection . . . 34 MARVIN SHAOUNI potentially could pay Michigan Coalition for Care ...... 3 Walter Pilon with new dark chocolate seasalt caramels at Sanders Candy’s new 5,000-square-foot production facility more than $150 million Microheat Inc...... 6 in Clinton Township. Pilon was brought on to lead the company’s revival efforts. to filmmakers next year Morley Brands ...... 3 — if all the movies get Oakland Community College . . . . . 26 made. Penske Corp...... 11 A bill (SB 1535) intro- Plante & Moran ...... 12 Prestige Engineering ...... 22 duced Sept. 23 by Sen. Paul Green School of Rock Music . . 25 Sanders: A sweet repeat Tom George, R-Kalama- Quality Home Health Care ...... 29 Bishop zoo, originally intended Sanders Candy ...... 3 to amend the Michigan Small Business Association ...... 32 Business Tax to cap the incentives at $100 State Bar of Michigan ...... 16 Candy-maker hopes to revive retail heyday million annually, but that was since re- T&C Federal Credit Union ...... 34 duced to $50 million. Tamales Express ...... 14 The current law says the state will reim- Tecumseh Products Co...... 28 Testek Inc...... 22 BY KELLI KAVANUGH the mid-’90s. And it bought the burse up to 42 percent of the in-state pro- 21st Century Jobs Fund ...... 22 SPECIAL TO CRAIN’S DETROIT BUSINESS company outright in 2002, but not COMEBACK PLAN duction costs of approved movies and cer- UM Health System ...... 12 many people know that. tain other media productions — and the Walter Pilon knows beans. He USA Credit Union ...... 1 And therein lies Pilon’s task. FOR SANDERS potential payout has some legislators pre- Valassis Communications ...... 12 spent more than two decades in He is charged with “bringing dicting catastrophic budget shortfalls next Wayne State University ...... 11 the coffee business before fate in- Morley Brands in Clinton back” the Sanders name by intro- year. William Beaumont Hospitals . . . . . 12 tervened. Township, which has owned ducing the candy to a younger gen- Backers of the rebates, including Gov. While vice president of market- Sanders Candy since 2002, is eration. He hopes to accomplish Jennifer Granholm, say it’s too early to ing for Flushing-based The Coffee planning to reintroduce the this by drawing on the brand’s curtail the incentives Beanery Ltd., he collaborated on a Sanders’ retail brand. considerable reservoir of nostalgia and that a cap could sti- gift package with Ron Rapson, The strategy includes: BANKRUPTCIES ...... 15 — it’s been made locally since 1875 fle a burgeoning indus- president of Morley Brands in Clin- BUSINESS DIARY ...... 19 — and reintroducing retail opera- Reintroducing retail try in a state desperate ton Township, and the two hit it CALENDAR ...... 21 tions. operations at new store for new jobs. off. CAPITOL BRIEFINGS . . . . . 15 What native metro Detroiter locations, complete with Sen. Nancy Cassis, R- He was brought on as director of doesn’t remember sitting at a marble counters, chocolate Novi, the lone no vote in CLASSIFIED ADS ...... 30 operations for Morley this sum- Sanders counter and indulging in dipping stations, Wi-Fi and a March on the original KEITH CRAIN ...... 8 mer, and so far it’s been a good fit. a hot fudge cream puff sundae or a blog for every store. film incentives and co- LETTERS ...... 8 “From one bean to the other,” Pi- slice of bumpy cake? Morley has spent $2.5 sponsor of the proposed OPINION ...... 8 lon said. “They’re both kind of uni- But it’s one thing to wax nostal- million to relaunch Sanders cap, said the potential OTHER VOICES ...... 9 versal, something everyone likes.” Cassis gic, another to reopen a retail thus far, and it projects to state reimbursement PEOPLE ...... 18 Morley has been making Sanders chain that has mightily dwindled, spend at least twice that will be far more than legislators realized. RUMBLINGS ...... 38 Candy products — like caramel and much. WEEK IN REVIEW ...... 38 hot fudge dessert topping — since See Sanders, Page 36 See Film, Page 37 20081013-NEWS--0004-NAT-CCI-CD_-- 10/10/2008 6:13 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 13, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES National stock slide spreads to region as losses increase

BY RYAN BEENE at $4.76. On Friday, GM shares re- ket and an acknowledgement that CRAIN’S DETROIT BUSINESS bounded to $5.04 per share. severe tightening of credit has Last week was one of the worst spread from its origin in the hous- Though Southeast Michigan in the history of the Dow Jones In- ing market to now affect the glob- stocks have been on a downward dustrial Average, as it lost more al financial community. slide for weeks and even months than 24 percent of its value. The Sowerby says indicators point to now, losses picked up steam last week was marked by heavy selling a coming end to the turmoil. week as fears of a severe, broad- each day. “As painful as this is, it is some- based weakening of the U.S. econ- The Dow dropped 367 points on what common for the last and fi- omy overtook investor behavior. Monday, 508 points on Tuesday, nal and most violent leg down of a “We have a tremendous crash 179 points on Wednesday, 679 bear market, which is intense ca- under way. It hasn’t happened in points on Thursday and 128 points pitulation,” or selling to simply one day, but certainly over the last on Friday to close the week at two weeks there’s been extraordi- get out of the stock market, 8,451. Sowerby said. nary weakness in the stock mar- “I think what people have more ket,” said Dana Johnson, chief “As of today, no, we haven’t (hit generally come to recognize over bottom),” he said. “It’s very often economist at Comerica Bank. the past couple of weeks is that “Fear has completely taken over humbling and futile to try to call there is going to be significant an absolute bottom; however, the most investor behavior, and I damage done to the economy by more time-tested indicators are think it is very unclear where this the turmoil in the financial mar- suggesting a bottom.” thing will bottom out,” he said. kets — that we are going to have a Emerging Markets But Comerica’s Johnson dis- In September, when Lehman significant national recession,” agrees. ADVANCED PROPULSION Brothers, Fannie Mae, Freddie Mac Johnson said. “The way I look at the environ- and Washington Mutual buckled, David Sowerby, a portfolio ment from an investor’s point of most local stocks were spared by manager and chief market analyst view is to say, ‘Are we going to comparison. for Loomis & Sayles Co. L.P. in Not last week. Bloomfield Hills, says the rapid have a recession or are we going to Many Southeast Michigan com- deterioration in the market is a have a depression?’ panies saw their share prices continuation of a nearly yearlong “And I firmly believe its going to erode heavily. But a look at losses bear market, noting that only 12 be a recession. And the extraordi- since late September shows the ex- companies in the Standard & Poor’s nary measures being taken by the tent to which local stocks have 500 have gained value, year-to- Fed and the Treasury and other been trending downward for some date. regulators is going to prevent a time. “Up until Sept. 30, (the market) further meltdown of credit flows Broad Executive Forum/Detroit Taylor-based Masco Corp. has had dropped a little more than 20 beyond what has already occurred OCTOBER 28, 2008 lost 29 percent from its share price percent,” he said. “The first seven, and will repair the credit lines,” he since Sept. 29. Shares closed Fri- eight days of October, it has ex- said. GM’s Rick Wagoner discusses mega trends day at $13.20, down 31 cents, or 2.3 ceeded that drop.” “I don’t think I can — and I don’t shaping the global auto industry. percent on the day. The acceleration of losses on think anybody else can — actually Detroit-based Compuware Corp. Wall Street is a product of a com- tell you with any degree of certain- saw shares open Friday trading bination of what Sowerby called a ty where this thing is going to bot- down $1.08, or about 14 percent, “profound hatred of uncertainty” tom out.” Register On-line! from Thursday’s close. The compa- by investors, heavy selling of Ryan Beene: (313) 446-0315, events.org/2008DetroitForum ny said early Friday it expected shares as investors fled the mar- [email protected] Questions: 517-355-8377 earnings and revenue to be down in its second quarter. The pre-trading loss on Friday added to the company’s skid last STREET TALK week from $8.91 per share at Mon- day’s open to $6.23 by Friday’s THIS WEEK’S STOCK TOTALS: 1 GAINER, 30 LOSERS, 4 UNCHANGED close, capping a 40 percent slide 10/10 10/03 PERCENT since Sept. 29, when a share was CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE worth $10.37. 1. Credit Acceptance Corp. $16.77 $16.42 2.13 Livonia-based Valassis Communi- Somanetics Corp. 19.30 20.70 -6.76 cations Inc. shares closed Friday at 2. Kaydon Corp. 37.04 40.32 -8.14 $5.28, up 15 cents, or 2.92 percent 3. on the day. But the stock has suf- 4. ArvinMeritor Inc. 9.69 10.62 -8.76 fered a 35 percent slide from its 5. Kelly Services Inc. 15.63 17.60 -11.25 Sept. 29 price of $8.10. 6. Meadowbrook Insurance Grp. Inc. 6.16 6.97 -11.62 Southfield-based Lear Corp. lost 7. Pulte Homes Inc. 11.47 13.11 -12.51 $1.19 per share, or 16 percent, clos- 8. Masco Corp. 13.20 16.13 -18.17 ing at $6.10 on Friday. The compa- 9. Agree Realty Corp. 20.77 25.48 -18.49 ny has lost 47 percent of its stock 10. Asset Acceptance Capital Corp. 8.61 10.72 -19.68 value since Sept. 29, when it CDB’S LOW PERFORMERS 10/10 10/03 PERCENT opened trading at $11.48. CLOSE CLOSE CHANGE Troy-based Flagstar Bancorp Inc. 1. General Motors Corp. $5.04 $9.00 -44.00 stock was worth $1.93 per share 2. Energy Conversion Devices Inc. 36.00 56.26 -36.01 Friday, shooting up 87 cents, or 57 3. Lear Corp. 6.10 8.89 -31.38 percent, on the day. Still, company 4. Compuware Corp. 6.23 9.03 -31.01 shares have dropped 52 percent 5. First Mercury Financial Corp. 9.75 13.87 -29.70 from its Sept. 29 price of $4.01 6. Rofin-Sinar Technologies Inc. 21.38 28.44 -24.82 Bloomfield Hills-based Pulte 7. ITC Holdings Corp. 38.06 50.49 -24.62 Homes Inc. stock has dropped about 8. CMS Energy Corp. 9.18 11.95 -23.18 30 percent since Sept 29. Shares 9. DTE Energy Co. 30.63 39.42 -22.30 closed Friday at $11.47 per share. 10. Syntel Inc. 18.42 23.40 -21.28 General Motors Corp. shares lost Source: Bloomberg News. From a list of publicly owned companies with headquarters more than a third of their value in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading Thursday alone, dropping to a at less than $5 are not included. nearly 60-year low to end the day anpagead2.qxd 9/16/2008 10:53 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS October 13, 2008 ‘Perfect storm’ of bad breaks ices Microheat’s rise

BY ROBERT SHEREFKIN Last month, the Farmington such as Paris, France-based Valeo AND DAVID BARKHOLZ Hills-based company ceased most SA could jump into the void with a CRAIN NEWS SERVICE production and fired all but a Behind the hot technology, Microheat had similar product it is developing, he skeleton crew of execu- predicts. And auto dealers will Microheat Inc. was hot. tives in the face of a GM been dogged by problems. The have to handle customers who will General Motors Corp. sold nearly 1 recall of 944,000 vehi- bring HotShot-equipped vehicles million units of Microheat’s Hot- cles, including 858,000 company’s system is popular in for a wire-harness fix to prevent Shot, a hot-spray windshield wash- in the United States, the chance of an electrical fire that er, on its pickups, SUVs and luxu- equipped with HotShot. on GM pickups and SUVs, prompted the recall. ry vehicles. Ford Motor Co. and Now, GM and the re- Ultimately, Microheat lacked Hyundai Motor Co. were taking a maining executives at two segments hit particularly the capital and staying power to hard look at the award-winning Microheat are locked in litigation withstand a recall of that magni- technology. over who will pay for the $20 mil- hard by high fuel prices. tude. But the thinly capitalized start- lion to $25 million estimated cost “The automakers are always up, reliant on just one customer, of the recall. GM has stopped using Waltham, Mass.-based consulting bought because the technology is looking for new technology,” Brag- was one recall away from disaster. HotShot. firm Global Insight Inc. predicts that good. man said. “Sometimes they’ll take Today, Microheat is on ice. Auto analyst Aaron Bragman of Microheat or its assets will be In the meantime, a competitor the kind of risks that lead to a situation like this.” Shooting star Until its blowup with GM, Mi- croheat was viewed as a rising star. This year, sales to GM were estimated at about $21 million, said a source familiar with the contract. By 2010, Microheat had projected industrywide sales of about $140 million, said a second source familiar with the company. Microheat’s technology gained praise. In 2006, the company was a finalist for an Automotive News PACE Award given annually for supplier product and process inno- vation. PACE stands for Premier Automotive Suppliers’ Contribu- tion to Excellence. But behind the hot technology, Microheat had been dogged by problems. The company’s system is popular on GM pickups and SUVs, two segments hit particularly hard by high fuel prices. Last year, the company failed to pull off an initial public offering meant to raise capital for growth, said Dennis Pawley, a former Mi- croheat board member and a former Chrysler Corp. manufacturing chief. That hurt. Microheat had geared for growth by adding engi- neers and equipment and tripling the size of its manufacturing center, said Pawley, of consulting firm Pawley Enterprises L.L.C. in Farm- ington Hills. When a skeptical Wall Street didn’t support the public offering, in part because contracts with Ford and Hyundai had- n’t yet come through, Pawley said he quit in May 2007. Executive changes Microheat’s board later replaced CEO Gary Pilibosian with then- CFO Ron Gardhouse. In January, Gardhouse was named CEO. He declined to comment. By then, Microheat began to feel the heat of tanking truck sales. A month later a United Auto Workers strike against a GM supplier began shutting down GM assembly plants. In August, GM’s recall was the last straw. “It was,” said Pawley, “the perfect storm.” It’s not clear who owns Micro- heat. In 1997, it was founded by Israeli native Solomon Franco. It was funded by various private investors. In 2004, three of the company’s original investors, Peter Neustadter, Aryeh Rubin and Matthew Maryles, added $5 million. From Automotive News DBpageAD.qxd 10/3/2008 11:38 AM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS October 13, 2008 OPINION LETTERS Help keep buy-local Why ‘right to work’ won’t work Editor: have high rates of unionization, tax- Crain’s Detroit Business In a recent issue, I read an article es, and regulation, but they perform welcomes letters to the editor. describing the desire of many in the All letters will be considered for much better economically than Michigan business community to publication, provided they are Michigan does (and they don’t have movement moving see a “right-to-work” law passed in signed and do not defame “right-to-work” laws). Why is this? Michigan as well as the elimination individuals or organizations. One reason, I suspect, is pride. In of the Michigan Business Tax and he buy-local bandwagon may be growing. Letters may be edited for length my employment, I have had the op- for state spending cuts in general and clarity. portunity to travel to several As Daniel Duggan and Nancy Kaffer report on Page (“Taxes, right-to-work top West Write: Editor, Crain’s Detroit states, and each time I have gone, 1, local companies are looking more closely at their Michigan concerns,” Sept. 22). As a T Business, 1155 Gratiot Ave., one of the first things I notice is vendor decisions. blue-collar worker who has sub- Detroit, MI 48207-2997. the pride of the people who live scribed to your paper for over seven It starts at the top. One of the biggest buyers of products E-mail: [email protected] there. Whether they are Pennsyl- years, I’m sure I definitely do not fit and services — the state of Michigan — has had Gov. vanians, Wisconsinites, or Texans the demographic of most of your (and though I haven’t been to Cali- Granholm’s mandate of giving preference to state companies. readership, which I gather are some kind of social safety net for fornia or New York, everything Last year, 93 percent of contract dollars — representing about mostly businesspeople and in mid- the working poor and the unem- I’ve heard from residents of those dle or upper management. There- ployed, but they don’t want to pay $4.4 billion — went to Michigan-based vendors. states suggests the same), they are fore, I guess I shouldn’t be surprised for any of it (see above, elimination It’s time to look at the vendor lists and see if the purchasing all proud of their states. They love at the slant of the reporting on these of MBT and state spending cuts). decisions are driven by habit or by price, and whether a topics that you return to so often. Second, a “right-to-work” law is where they live and they make change can offer benefit for the local economy. However, this time, I’ve finally de- not a panacea. In recent issues of sure everyone knows it. cided to throw in my own two cents your paper, businesspeople have But what does a Michigan busi- on these topics. said again and again that Michigan nessperson do? He or she bad- First, it would appear that many workers are overpaid, overbenefit- mouths Michigan, puts it down, Wait for court on Blues in the Michigan business communi- ed, and are of low quality in general and has nary a good word to say ty wish to have a state that has (see the “C+ on workforce quality” about it. That kind of attitude does- For nearly a year, Blue Cross Blue Shield of Michigan has strong public safety, good educa- in the same article above). n’t exactly sell our state. been trying to get regulatory and legislative relief in rate-set- tional institutions, and at least New York and California both See Letters, Page 9 ting and its traditional role as “insurer of last resort” for any Michigan resident who applies for coverage. The battle to achieve both aims is being waged on two fronts: the Legislature, where the state Senate is weighing Blues-backed plans to achieve their goals, and in the courts. Attorney General Mike Cox filed suit against Blue Cross earli- TALK ON THE WWEB er this year, accusing the state’s dominant and nonprofit From www.crainsdetroit.com health insurer of improperly transferring funds to a for-profit Congress passing the relief bill subsidiary to buy yet another for-profit insurer in California. Re: The Wall Street bailout Reader responses to stories and gives me faith that the global bank- Congress is making a huge mis- blogs that appeared on Crain’s Some critics believe transferring reserves from the non- ing system will continue to func- take bailing out the financial indus- profit Blues to its for-profit subsidiaries can help it avoid trig- Web site. Comments may be tion without disruption. Will this try. There isn’t enough talk about what gering a state-mandated premium reduction process for en- edited for length and clarity. prevent a recession? Unequivocally, to do to ensure this problem doesn’t rollees in Blues plans. no. It’s not a matter of whether a happen again, just the $700 billion recession will happen, but how One issue in Cox’s suit is the transfer of $125 million to the Band-Aid and the perks to entice the hands of corrupt and incompe- tent Wall Street CEOs. long it will last and how deep it lawmakers to vote for this bill. for-profit Accident Fund Insurance Co. of America that al- Cate Caldwell will be. lowed it to buy a California insurer. He also questions whether Liz Timmerman Timothy Mistry the Accident Fund is allowed to buy insurers at all. This so-called bailout will do no What about the responsible people The real fix is to stop the greed Last week, as reported on www.crainsdetroit.com and on who did not overextend themselves more than the stimulus checks did a few months ago. The checks al- that caused the problem. Many Page 29 of this week’s issue, Ingham Circuit Judge Paula Man- and buy houses that were way beyond Americans had a part in creating lowed us to lie to ourselves for an- derfield delivered some mixed decisions in the case. their means? Are they going to be this mess, not just the politicians other quarter. Now, instead of giv- She ruled in favor of Blue Cross on two counts. But she re- given a reduction in principal on and Wall Street. Now let’s move their loan they have toiled to pay ing the stimulus check to the public, fused to dismiss the allegation by Cox that the purchase of forward and start paying atten- off honestly and prudently? I think we give it to Wall Street. tion to what is right and what is three for-profit companies violated state laws. She’ll hold a not. Jon Robinson wrong. hearing on those purchases. Ed Scharp Donice Breza The outcome of this case could be important in deciding To satisfy self-centered mem- how to handle Blue Cross rates and whether Michigan should This bailout is another example bers of the House of Representa- We need a moratorium on foreclo- tives, what started out bad was made create a high-risk insurance pool to relieve Blue Cross of its of Bush-era reverse-Robin Hood sures and also must stop the banks politics — taking from the poor to worse by a series of earmarks that from charging the exorbitant in- “insurer of last resort” burden. give to the rich. Taxpayers will most are totally unrelated to the insta- terest rates that are driving the Lawmakers should wait for Manderfield’s final decisions likely be on the hook for more than bility in the markets. foreclosures. before voting on the Blue Cross bills. 1 trillion dollars, now, to put into Thomas Dew Sheryl Maldonadop

KEITH CRAIN: It’s time for government to hunker down Last week we heard that our corresponding slacken- er programs are being quite some time. Now the rest of bailout, this country isn’t going to new mayor of Detroit is facing a ing of tax revenue. done must only be en- the nation is joining us. have resources for more spending. $100 million deficit. Don’t be sur- Our governor, along hanced and added to, We’re going to see our revenues Someone said that sacrifice will prised if that final number is sev- with the state’s mayors not eliminated or slow or flatten, and we are going to be necessary for taxpayers in the eral times larger. and county executives, slashed severely. be paying fewer taxes now and in next administration. Sacrifice will It’s going to be a very difficult is going to have to take No one has a crystal the foreseeable future because now be necessary on the part of time for government entities all some draconian actions. ball, and it’s impossible we’re going to have lower income. government. over our state and nation. It’s not the end of the to predict whether this Both presidential candidates It’s been pretty ugly the last few Our state better get used to the world, but government financial crisis will end had better understand that they weeks. We hope it will get better fact that its revenue is going to be agencies better realize soon and what reper- might as well shelve all those and that the economy will recover dropping along with the national that they need to cut cussions it will have. promises they are making to get quickly. But it may not and our economy. With a large percentage and cut now. It’s going But we all know that elected. There will be no money to biggest spenders, governments, of Michigan’s revenue tied to sales to be painful for govern- there will be an eco- pay for anything additional, much are going to have to learn to cut ex- taxes, as we see some slackening of ments that have a mindset that nomic contraction. We have been less what Congress has already penses and live within less rev- retail sales, we’re going to see a cutting is impossible and whatev- in a recession in Michigan for committed. After the $700 billion enue, like all of business. 20081013-NEWS--0009-NAT-CCI-CD_-- 10/10/2008 11:37 AM Page 1

October 13, 2008 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: ‘Crown jewels’ can bring success to state

For as long as I can re- great. But now, my non- French tourists. We have beautiful auto industry. With important, mistic about Michigan and our call, I’ve always been a conformist self tells me it’s lakes and fresh water. We are not new lower-cost labor contracts, major industries. nonconformist. When time to talk about the posi- prone to hurricanes, tsunamis, beautiful new products, improved In tough times we need strong businesspeople wore jack- tive aspects of the auto in- volcanoes or earthquakes. quality and improved fuel-efficient political leaders to make tough de- ets and ties, I wore jeans. dustry and Michigan. We have the most beautiful and vehicles, we are ready and able to cisions on budgets. We need to lead the country out of the reces- Now that they are casual, I am fortunate to know efficient airport anywhere in the take advantage of recommenda- sion. tions that could save $700 million a I like to wear a jacket and people from all over the world. With land available so close Companies are even now realiz- year to the state. And we need to tie. I could give many ex- world who live here. So I to major population centers, we ing that in a world of high-cost en- focus on our crown jewels, includ- amples, but let’s just say learn from them, the beau- have the unique opportunity to de- my friends tell me, “You ergy, global manufacturing has its ing the auto industry, air-trans- ty of Michigan and how we velop an aerotropolis. A cleaner limits, and there will be many op- would never drink the Michael Egren portation facilities, tourism, eth- take it for granted. I have and more vibrant downtown De- portunities for production to move Kool-Aid.” nic diversity, attractiveness to friends from Paris, Munich, troit is attracting more people and closer to the end users. With our technically educated people from I’ve been concerned about the Tokyo, London, and Israel. All of more investment. The proposed skills and manufacturing experi- all over the world, great universi- direction of Michigan and the De- them have loved living here and light-rail system will continue the ence along with competitive labor ties and nice people. troit auto industry for more than hated to move back home. Friends progress. contracts, we are well-positioned Michael Egren is CEO of Auburn 10 years — even while many were from France couldn’t understand Most important, Michigan still to take advantage of this future Hills-based Foamade Industries still writing that things were so why Michigan isn’t loaded with remains the center of the world trend. This is the time to be opti- Inc.

LETTERS CONTINUED ■ From Page 8 Speaking to the issue of worker pay, it doesn’t inspire confidence in Michigan workers when they are constantly insulted by businesspeople who tell them they’re overpaid and greedy, especially when these same workers see the head of a major Michigan-based auto parts supplier take home more than a quarter of a billion dollars in compensation over the previous 10 years, post a $37 million profit, and who then demands the workers who helped make his profit possible take a 50 percent pay cut. Or when they see the leader of another supplier lead his company into bankruptcy, complain about a mytholog- ical $130,000-a-year lawnmower driver, demand that all of his (non- management) workers take pay cuts, and then authorizes a plan for millions of dollars of “golden para- chutes” to be paid out to “key managers” of the company during the Change is Coming very bankruptcy these managers helped make possible. My question is, when certain Attend this important Estate and Tax Planning Workshop Michigan businesspeople are at last successful in getting everything to see how this change will affect you. they want out of this state, that is, a “right-to-work” law, no MBT, dras- • How to Reduce or Eliminate Estate Taxes • How the Proposed Tax Law Changes Will Impact You tically reduced state spending (with the concurrent loss in infrastruc- • How To Help Your Favorite Charities • How To Create Greater Wealth ture), and the long-awaited $20,000- • How To Maximize the Value of Unwanted or Outdated Life Insurance Policies per-year worker (with no benefits), and they look around and see our Join us to learn more! state is still not competitive, who will they blame then? Todd Bulgarelli Saturday, November 15, 2008 Olivet Transit center unneeded The Townsend Hotel, Birmingham 9:00 a.m. to 11:30 a.m. Editor: An article on Page 2 of the Oct. 6 Call us to reserve your spot at this important event. You don’t want to miss it! issue states that “Troy, Birming- Estate values of $5 million or more required. Please, no financial advisors. ham seek manager for (the proposed $6 million) transit center project.” I shudder to think what the annual cost will be to heat and staff this white elephant around the clock. Right now, on average, only nine people board each of the three plan. prepare. preserve. protect. daily trains that stop in Birming- ham. Going from the current Plexi- Wealth Preservation & Transfer Specialists glas bus shelter to a $6 million train station in one step is a little like going from a Schwinn to a Rolls Royce. 1-877-ASG-Ø-TAX (1-877-274-0829) Does this expenditure make New York • Boston • Detroit • Florida • Los Angeles sense amidst today’s economic problems? www.AdvancedStrategiesGroup.com Richard Rosenbaum Birmingham DBpageAD.qxd 10/7/2008 4:45 PM Page 1

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October 13, 2008 CRAIN’S DETROIT BUSINESS Page 11

Symposium: Business and Environment, Most Admired Companies The Crain’s Detroit Business Most Admired Companies will be recognized as part of an Oct. 20 corporate citizenship symposium at the NextEnergy Center. For more information on the free event through Wayne State University’s Center for the Study of Citizenship, see https://specialevents.wayne.edu/csc

Special mention Penske Corp. Bloomfield Hills Penske Corp. stood out in the surveys as the most widely admired local company, both for its financial success and its community emphasis. Roger Penske

The rest of the most admired PrivPrivateate companies companies ■ Ilitch companies Detroit ■ Plante & Moran Southfield PublicPublic companies companies ■ Compuware Corp. Detroit ■ Domino’s Pizza Inc. 14 local companies stand out for their Ann Arbor ■ DTE Energy Co. business success, community involvement Detroit BY BILL SHEA ■ Ford Motor Co. CRAIN’S DETROIT BUSINESS HOW THEY WERE SELECTED Dearborn ontributions to the metro Detroit The selection of the Most Admired ■ General Motors Corp. Compuware headquarters community ruled the day in Companies was through a three-step process that comprised interviewing key Crain’s Detroit Business’ first list Detroit business leaders to determine what C of Most Admired Companies. qualities they believe admirable ■ Masco Corp. Bloomfield Hills-based Penske Corp. companies possess, followed by two Taylor emerged as the most widely admired local surveys. company in a pair of surveys of local busi- The first survey went to a broad range of ■ Valassis Communications ness executives by Crain’s in cooperation C-level executives and other business Livonia with Wayne State University. and nonprofit leaders to narrow a list of It was also the only company in the 14 private and public companies with more Nonprofits that emerged from the surveys that was than $200 million in revenue, large Health care admired nearly as much for its financial health care organizations and the top 25 ■ strength as its community emphasis. fastest-growing companies. The second Barbara Ann survey went to a smaller group to more Owner Roger Penske’s community in- Karmanos specifically rate the companies in the volvement and the success of his company narrowed list. Cancer Center are what Penske Corp. President Robert Inserts from Valassis In the final survey, companies were Detroit Kurnick believes drove the top ranking. assessed on community emphasis, “Roger’s exposure in the community financial strength, strength of workforce, ■ Henry Ford has increased the level of exposure we leveraging diversity, the strength of the Health System have in the community,” he said. “Many company’s core values and culture and Detroit people are aware of his civic commit- whether they were admired overall. ments.” Drafting the survey for Crain’s from ■ University of Penske has been recognized for his ef- Wayne State University were Marcus forts at leading Detroit’s Super Bowl XL Dickson, associate professor of Michigan host committee, reviving the Detroit Belle industrial and organizational psychology, Health Isle Grand Prix auto races and his chair- and John Arnold, director of the Applied Psychology and Organizational Research manship of the public-private Downtown System Group. Detroit Partnership that aims to improve the Ann Arbor Students helping to conduct the survey city. were Anne Bal, Abby Reiss and Cort ■ William Just as important, however, are the ac- Rudolph. Beaumont tual aspects of how Penske Corp. does Hospitals See Admired, Page 12 Royal Oak UM Health System 20081013-NEWS--0012-NAT-CCI-CD_-- 10/10/2008 10:44 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 13, 2008

FOCUS:MOST ADMIRED COMPANIES Admired: Fourteen local companies stand out among surveys ■ From Page 11

business, Kurnick said. that the companies that are admired ceived Most Preferred Hospital in and Livonia-based Valassis Commu- been a lifeline for such nonprofits “The driver of our success is are the companies that pay atten- Southeast Michigan recognition in nications Inc. all were started by lo- as the United Way for Southeastern our customer focus and employee tion to the region and show some 2007 by National Research Corp. cal entrepreneurs: Compuware is Michigan and many arts and educa- focus and our strategic partner- loyalty and dedication to the region Henry Ford Macomb Hospitals, still run by founder Peter Kar- tion organizations. ships,” he said. The company, that has given them support over Clinton Township, and University of manos, while Masco Chairman which has nearly 40,000 employ- the years,” he said. Michigan Hospitals & Health Centers Richard Manoogian is the son of ees, also strives to keep things sim- About the rest of the companies in Ann Arbor along with four De- company founder Alex Private companies ple, he said. on the list: troit Medical Center hospitals were Manoogian. All were given broad The public view of the Detroit- “We run lean and flat,” he said. recently named to the Leapfrog support from executives. Com- based Ilitch-owned companies Penske reported 2007 revenue of Group’s 2008 Top Hospital list for puware was particularly noted for sometimes seems to yo-yo between $21.4 billion, up from $18.9 billion Health care patient quality and safety. Beau- its community contributions, jubilation and despair, depending in 2006. The company’s holdings The Detroit area boasts many mont was on the 2007 list. which include moving its head- on how the Detroit Tigers and the include retail automotive, truck highly ranked health care systems Henry Ford Health System also quarters from the suburbs to Detroit Red Wings are doing. leasing and logistics, transporta- and hospitals, but Henry Ford Health is noted for a diverse workforce, downtown Detroit However, the family’s rise from a tion components and motor sports System, Detroit; University of Michi- plus education programs for its Detroit-based DTE Energy Co. also single pizza store to the approxi- racing businesses. gan Health System, Ann Arbor; Bar- workforce such as HFHS Universi- received high overall marks but mately 2,000-store Little Caesars Marcus Dickson, associate pro- bara Ann Karmanos Cancer Center, ty and a leadership academy. was particularly admired for its chain, the two sports teams, Mo- fessor of industrial and organiza- Detroit; and William Beaumont Hos- Karmanos is one of 41 designat- community contributions, diversi- torCity Casino (purchased by Marian tional psychology at Wayne State pitals, Royal Oak, outpaced others ed comprehensive cancer centers ty and strong workforce. Ilitch in 2005), the Fox Theatre and University, said the survey results in this survey. by the National Cancer Institute. It Neither Ford Motor Co. nor Gener- real estate and food distribution show Roger Penske’s reputation UM, Karmanos and Beaumont also was recognized as Southeast al Motors Corp. got points for finan- holdings is an entrepreneurial suc- for strong leadership. made the list based on regard for Michigan’s most preferred hospi- cial stability, but their long tradi- cess story that still resonates. “It’s easier to admire a person their overall quality, while Henry tal for cancer care in 2007 by the tion of philanthropy secured a Southfield-based Plante & Moran and that organization than it is Ford received top marks for lever- National Research Corp. most admired ranking from many. P.L.L.C. has been widely recognized sometimes to admire abstracted aging diversity and its strong Detroit-based GM often provides for programs that encourage work- organizations by itself,” he said. workforce. an initial show of support to help a life balance and good workforce “Because of that real, personalized For the 14th consecutive year, Public companies philanthropic cause or economic- practices. The company has been leadership, that can have an im- UM Health System is on this year’s Seven public companies were development initiative gain mo- named to Fortune magazine’s 100 pact on how people think about the U.S. News & World Report national cited by the surveys, and they are mentum. The Detroit Riverfront Con- Best Companies to Work for 10 con- company as well.” honor roll. Beaumont Hospitals either entrepreneurial success sto- servancy, which jump-started secutive years and has received The high value assigned to com- also is a top-ranked hospital on ries, conspicuous community con- riverfront redevelopment, was awards from the American Society of munity emphasis in the surveys U.S. News & World Report for tributors or both. founded with initial financial sup- Women Accountants, Practical Ac- was not a surprise, Dickson said. heart surgery, cancer, endocrinol- Ann Arbor-based Domino’s Pizza port from the Kresge Foundation, countant magazine and others. “It’s no secret that this is a region ogy, geriatrics, neurology, ortho- Inc., Detroit-based Compuware GM and the city of Detroit. Bill Shea: (313) 446-1626, that is having some difficulties, and pedics and urology. And it re- Corp., Taylor-based Masco Corp. Dearborn-based Ford also has [email protected] 20081013-NEWS--0013-NAT-CCI-CD_-- 10/10/2008 10:25 AM Page 1

October 13, 2008 CRAIN’S DETROIT BUSINESS Page 13

FOCUS:MOST ADMIRED COMPANIES To be most admired, hire here, invest here, focus here

BY RYAN BEENE diversity to ultimately benefit the nies” survey. they feel better about it, and it cal business leaders hold in high CRAIN’S DETROIT BUSINESS business. A company’s ability to develop makes them more mobile in the fu- esteem companies that prove their “Those companies that actively and maintain a strong workforce ture. Then, because they recruit value commitment through their In an economy marked by un- tried to seek out divergence of is also a way it can build a reputa- better people, they tend to often be actions. certainty and turmoil, local com- opinion, different backgrounds, tion in the business community. able to offer the better services and Value commitment can be panies and business leaders with a that might lead to different ideas But it’s a cyclical effect. A com- the stronger situations for new demonstrated by how a company firm commitment to the metro De- than the ways things always have pany with a strong reputation in business,” Dickson said. fills leadership roles, how opportu- troit region carry clout among been done were the companies that general, and a commitment to its “You can think of it in terms of nities are distributed within the their peers. were doing a better job having di- people in particular, generally is the reputation can generate more organization and when leadership But having a commitment to the versity lead to positive business more able to attract and retain the in terms of recruiting, and recruit- makes decisions about a compa- region means more than partici- outcomes rather than simply just talent needed to build a strong ing can make companies stronger ny’s relationships. pating in community events. It say they have a diverse work- workforce. in terms of business generation.” For example, refusing business means having a strong local foot- force,” said Dickson, who was part “Given similar opportunities, How a company treats its people from a client that conducts itself in print, committing to a local work- a way contrary to a company’s val- force, reinvesting in the area. of the Wayne State team that craft- people would prefer to work for a also gives insight into a company’s Doug Rothwell, CEO of Detroit ed Crain’s “Most Admired Compa- company with a better reputation; commitment to its values, and lo- See Admired, Page 14 Renaissance Inc., says what he ad- mires most about a company is its ability to sustain local focus. “The phrase that comes to mind to me is staying power — companies that consistently, year-in and year-out, are profitable, good places to work, reinvest in the community and have a willingness to lead, not just participate in community affairs,” he said. Admiration. A company’s strong local commitment may go beyond generat- ing admiration from peers in the You have earned ours. business community. Lynn Wooten, a clinical associate professor of strategy, management and organizations at The University of Michigan’s Stephen M. Ross School of Busi- ness, says a company may earn more support from customers Wooten simply because of that commitment. “We’re seeing that stakeholders, customers, others, they want to see people engaged in their communities and invested in the area, especially in this economy,” she said. An emphasis on community was one of the areas where companies were rated in Crain’s Most Ad- mired Companies survey, conducted in partnership with Wayne State University. The other categories were a company’s financial strength, ability to maintain and develop a strong workforce, its ability to leverage diversity and a commitment to values. We know that your real estate choice is part of your success. ‘The biggest assets’ Wooten says these categories As a company driven to deliver exceptional performance, come down to one thing — a company’s people. REDICO has great appreciation for the inspiring successes of our customers … “In this particular economy, the real estate brand of choice. people are the biggest assets,” she and for making REDICO said. “So using your human capital to achieve your strategy is important.” Diversity can lead to companies being highly re- garded among their peers. But to be admired, a company must go beyond sim- 248 827 1700 ply boasting a diverse workforce. PROUD RECIPIENT OF THE 2006 & 2007 CEL NATIONAL REAL ESTATE “A LIST” AWARD FOR SERVICE EXCELLENCE Marcus Dick- son, an associ- Dickson ate professor of industrial and organizational psychology at WSU, says business www.redico.com leaders admire companies that use 20081013-NEWS--0014-NAT-CCI-CD_-- 10/10/2008 10:24 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS October 13, 2008 Hispanic Business Alliance to release economic impact report at business expo

BY NANCY KAFFER “It will focus on specific and tar- CRAIN’S DETROIT BUSINESS geted techniques on how to hone in your elevator speech, how to get The Hispanic Business Alliance’s your point across in two to five annual Hispanic Business Expo minutes,” Feliciano said. and Economic Summit has come a Returning will be the popular long way. Business-to-Business Matchmak- Seven years ago, the first event ing session. had about 100 attendees and 10 ex- “Participants are given a seat- hibitors. Last year, about 3,500 at- ing chart,” said session facilitator tended, 150 exhibited and U.S. Sen. Steve Larson. “There are 11 tables John McCain, R-Ariz., was the with nine seats at each table. At keynote speaker. each session, those nine people This year’s event, set for Oct. 22- will tell the other eight people who 23 at the Detroit Marriot Renaissance they are, the name of their busi- Cézanne Center, is expected to attract simi- ness, what they sell and what they lar numbers. Dalí buy in about a three-minute As the expo has grown, its scope speech. If you’re interested, you Degas has broadened: from its begin- can give an invitation to make a nings as a multifaceted platform sales call.” Gauguin designed to promote and showcase Last year’s matchmaking event member businesses to the inclu- generated an estimated $8 million Magritte sion of such components as health in new business for attendees, the issues and community-building ac- alliance reports. Matisse tivities. Detroit Mayor Ken Cockrel Jr. This year, the alliance will re- will speak at the expo luncheon, Modigliani lease a much-anticipated report Feliciano said, the first time the that aims to quantify the regional new mayor will address the re- Monet economic impact of the area’s gion’s Hispanic population. growing Hispanic community — Business owner Mirna Karpiuk, Picasso up 39 percent in Wayne County, ac- proprietor of Redford Township- cording to the U.S. Census. based Tamales Express and a native Renoir “The objective is to use this docu- of Guatemala, said she’s attending mented statistical information and the expo for the first time this year Rodin data as a vehicle to promote the His- in an attempt to increase her busi- Van Gogh panic and Latino empowerment ness’ exposure. from an economic and development “We had a carryout restaurant, standpoint,” said Fred Feliciano, then we closed it and have decided president of the alliance. “It’s con- to go wholesale,” she said. stantly said that the Hispanic pres- Karpiuk said she hopes the re- ence is growing and that the His- gion’s increasing Hispanic popula- panic community has impact, but tion will make her tamales an at- (those statements) don’t have a val- tractive offering for area ue and are sometimes ignored be- restaurants. cause that value doesn’t exist.” For more information or to reg- Also new this year is a network- ister for the event, visit www.hba- ing session for members of Hispan- expo.org. ic Young Professionals and Entrepre- Nancy Kaffer: (313) 446-0412, neurs. [email protected]. October 12, 2008 – January 18, 2009

Masterpiece after masterpiece after masterpiece. See them now. Admired: Focus on local For tickets visit www.dia.org or the DIA Box Ofﬁce. ■ From Page 13 Members receive FREE tickets. Join today! 313.833.7971 ues is how a firm can put its values and automotive companies with into action. historically heavy concentrations The trouble is, these are not typ- in the area have had to reduce ically public actions. their presence as industry has “Those are things that compa- transitioned from local and region- nies do, perhaps not even in an in- al to global. This exhibition has been organized by the Cleveland Museum of Art. tentionally public way, but they do This transition has forced the In Detroit, the exhibition is proudly sponsored by Bank of America. Additional support has been provided by the Michigan Council for Arts and Cultural Affairs and the City of Detroit. reflect the values that their leaders hands of many local companies to Amedeo Modigliani (Italian, 1884–1920). Portrait of a Woman (detail), c. 1917–18. Oil on canvas; 65 x 48.3 cm. The Cleveland Museum of Art, Gift of the Hanna Fund 1951.358. hold,” Dickson said. reduce their presence locally © The Cleveland Museum of Art. Karl Schmidt-Rottluff (German, 1884–1976). Self-Portrait with Hat (detail), 1919. Oil on canvas; 73.3 x 65 cm. The Cleveland Museum of Art, through layoffs, plant closures and Bequest of Dr. William R. Valentiner 1965.440. © 2008 Artists Rights Society (ARS), New York / VG Bild-Kunst, Bonn. relocating to other areas. Dollars and cents The negative impact of these ac- “It’s hard for companies now to tions is much more pronounced lo- demonstrate that community lead- cally because of the region’s heavy ership because of the state of the ties to manufacturing. economy,” Rothwell said. “It’s not But admiration can come in that they don’t want to, it’s that many forms. they can’t; and they’re really “It may well be that a company spending their time on their com- that makes those hard decisions pany, and that’s what’s most im- would get lower scores in some as- portant for the community.” pects, but higher scores in finan- Rothwell says a company’s oper- cial strength, where they are mak- ational and financial strengths are ing hard decisions to establish necessary for it to demonstrate themselves more strongly for the other admirable characteristics, future,” Dickson said. like community emphasis. Ryan Beene: (313) 446-0315, But many local manufacturing [email protected] 20081013-NEWS--0015-NAT-CCI-CD_-- 10/10/2008 11:53 AM Page 1

October 13, 2008 CRAIN’S DETROIT BUSINESS Page 15 Edison revamps phone system for high-volume calls LANSING — The De- eratively with our cus- Build Stronger troit Edison Co. is work- tomer to get a permanent ing with its telecommu- Capitol fix in place.” He was un- People Skills nications vendors to Briefings able last week to provide With five certification curriculums, improve its ability to details of the solution, but a host of public workshops, handle high volumes of said Verizon is working seminars, and custom calls, in the wake of Edi- “with all parties to make training options, son phone system fail- sure this gets resolved, our Learning and ures during catastroph- doesn’t reoccur.” Advancement programs ic June storms. Lynn Newman, direc- build stronger, more The phone system op- tor of media relations at effective people skills. erated with limited ca- Avaya, said the company pacity and prevented does not discuss its work Amy Lane customers and safety of- with customers. ficials from reaching Edison to re- Edison is negotiating vendor port outages and downed power contract changes to include stress lines. Michigan Public Service Com- testing of all call-center infrastruc- mission staff called the phone sys- ture. The tests will be done at least tem problems “unacceptable,” as once a year, prior to the June-Sep- Crain’s reported in August. tember storm season, Dow said. The full PSC has yet to issue any The utility has also established findings or orders in its investiga- a Detroit Edison call-flow over- tion of Edison’s and Consumers En- sight team that will review any ergy Co.’s response to storms that changes to the system, monitor knocked out electricity to more call-center performance and exe- than 760,000 customers. cute annual testing. Vince Dow, vice president of dis- Dow said he anticipates that the (248) 353-4500 ASEONLINE.ORG tribution operations at Edison par- systems’ overall capability will in- /035)8&45&3/)*()8":4065)'*&-% .*$)*("/ ent DTE Energy Co., said the high crease beyond the 33,000 calls per volume of calls that came in a hour that it currently can handle. short period of time threw off the He declined to discuss liability timing of various parts of the sys- for the problem and said his focus © 2008 ASE tem. Calls flow through switches is on improving customer service. to an automated voice-response Eventually, though, the utility unit that queries callers and then may not need to rely upon cus- pushes the caller information to tomer calls for reports of outages. Edison’s outage system, where it is A new $350 million program to processed and then dispatched to automatically read customers’ elec- work crews. tric and gas meters will provide a “Everybody tried to call at one two-way communication network time. We can take 33,000 calls an between DTE utilities and each hour, we can’t take 100,000 calls an electric and natural-gas meter. The hour,” Dow said. advanced metering infrastructure, As a result, the call-traffic flow or AMI, system will provide notifi- slowed and callers experienced re- cation when a meter loses power sponses, like continuous ringing, a and when it is restored, enabling busy signal, or a message that said the company to recognize outages the call could not be completed. without customer input. Working with vendors Verizon DTE is launching AMI on a pilot Communications Inc. and Avaya Inc., basis this year. Subject to perfor- Dow said the company resynchro- mance test results, the company nized the system, has made hopes to begin full deployment of changes to improve call flow, and the system in 2009 and roll it out has since conducted high-volume over six years. stress tests of the system to determine its performance and identify further improvements that might Comings & goings be needed. John Sellek, former director of Peter Lucht, executive director communications for the House Re- for external affairs for Verizon Busi- publican Caucus, has become ness, a unit of Verizon Communi- press secretary and deputy direc- cations, said “there is a fix in place tor of communications for Michi- right now that would ensure that gan Attorney General Mike Cox. no volume-based issues like this Amy Lane: (517) 371-5355, would occur while we work coop- [email protected]

BANKRUPTCIES The following businesses filed for bilities: $58,713. Chapter 7 or 11 protection in U.S. Five Star Drywall Inc., 494 Lochaven, Bankruptcy Court in Detroit Oct. 3-9. Waterford Township, voluntary Chap- Under Chapter 11, a company files for ter 7. Assets: $119,103; liabilities: reorganization. Chapter 7 involves to- $257,139. tal liquidation. Rami Investment Inc., 4566 Mead, 31260 Wakefield L.L.C., 3315 Bucking- Dearborn, voluntary Chapter 7. As- ham Trail, West Bloomfield Town- ship, voluntary Chapter 11. Assets: sets: $1; liabilities: $143,124. $809,500; liabilities: $862,399. TGH Ventures Inc., 22 Wellesley, Pleas- Action Printing and Copying L.L.C., ant Ridge, voluntary Chapter 11. As- 2280 E. Michigan Ave., Ypsilanti, vol- sets: $275,150; liabilities: $289,403. untary Chapter 7. Assets: $4,000; lia- — Compiled By Julie Dawso 20081013-NEWS--0016-NAT-CCI-CD_-- 10/10/2008 10:21 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS October 13, 2008 New State Bar head Pappas wants group to strengthen advocacy

BY ROBERT ANKENY Pappas does liti- inghouse to coordinate pro bono ing lawyers at smaller firms in the Michigan lawyers and focus on CRAIN’S DETROIT BUSINESS gation, trial and legal work and contributions. new technology and business meth- their public-service work. appellate work His “Cabinet” will include presi- ods that large firms can afford to do The bar association also plans to Ed Pappas, new president of the on commercial dents and executive directors of in-house. work with its Young Lawyers Sec- State Bar of Michigan, says the profes- real estate, con- the state bar and State Bar Founda- The center, in the association’s tion to support events aimed at at- sional organization of more than tract, corporate, tion, plus representatives of legal Lansing office, has 12 computer tracting and retaining attorneys in 40,000 lawyers should strengthen its partnership and aid organizations. stations for testing legal software, Michigan, he said. role as an advocate for lawyers, law shareholder dis- The foundation has raised more plus directories of vendors and a “Michigan, with our interna- firms and the public. putes. He has ar- than $8.5 million in recent years, library of legal forms and informa- tional border and some of the Membership in the association bitrated and me- which he said can help start a tion on docket control, marketing, largest corporations in the world is mandatory in Michigan, and Pappas diated a variety statewide endowment fund for civ- business and financial manage- here, affords lawyers the opportu- Pappas views it as an agent for as- of civil lawsuits. il legal-aid programs. ment. Seminars are scheduled nity to do some sophisticated and sisting attorneys and letting the “Access to justice is high on my Pappas said the association is ex- around the state, Pappas said. quality work,” Pappas said. public know how the legal system priority list,” Pappas said, and he panding education efforts beyond The association spends about Also on his agenda for his year works. is restructuring how the bar helps support of the traditional Institute for $200,000 of its $10 million annual as president is to expand and guar- A partner and client service di- make legal services available to Continuing Legal Education, and has budget on the center. antee diversity at all levels of the rector at Dickinson Wright P.L.L.C., low-income people and families. established a Practice Management Also under way, Pappas said, is law, Pappas said. where he has worked for 35 years, Pappas wants to set up a clear- Resources Center that assists in train- a statewide campaign to promote And he wants to strengthen public education programs about the legal system and lawyers of local bar associations and courts.

Bills would raise property tax exemptions for nonprofits

Legislation that would increase the property exemption for the Girl Scouts and similar nonprofits to 640 acres from the current 400 acres passed the Michigan House Sept. 25 and is on its way to the Senate. House Bills 6437 and 6438 also would multiply that exemption by the number of affiliates merging or consolidating, when applicable, and exempt the taxable value of the property of those nonprofits from being uncapped when they merge or consolidate. IDEAL EXPENDITURE OF ENERGY A third bill, Senate Bill 1449, would exempt affiliates of those on family business same nonprofits— Girl Scouts of the U.S.A., Boy Scouts of America, Camp Fire U.S.A., YMCA of the U.S.A. and YWCA of the U.S.A — from state property taxes altogether. The bill has been before the Sen- worrying about ate finance committee for the past couple of months, said Richard company’s future Sundquist, a member of Clark Hill P.L.C. and member of the board of mentoring company’s directors of the Girl Scouts of Metro future CEO Detroit, which is merging with three other affiliates Jan. 1. Michigan tax laws currently exempt many nonprofits — including theaters, libraries, educational institutions and charities — from You want to keep the family business in the family. And, like your family, you want it to prosper. At Northern Trust we property taxes altogether. bring a collaborative, integrated wealth management approach to both your business and personal needs. Helping But it caps the property tax ex- you maximize assets by offering expertise in everything from liquidity management to multi-generational planning emptions for the individual coun- strategies. And allowing you to focus on what really matters: growing your business and the next generation of cils of the Girl Scouts, Boy Scouts, Camp Fire Girls, and YMCA- management. To learn more, call Northern Trust or visit northerntrust.com. YWCA at 400 acres each. Bloomfield Hills • Daniel Pienta • 248-593-9212 Grosse Pointe Farms • Marita Grobbel • 313-881-1065 The current law would mean the mergers taking place among the Michigan Girl Scouts affiliates would bring higher tax consequences for the consolidating organizations. The consolidated Girl Scouts of Southeastern Michigan, for example, estimates its collective Private Banking | Investment Management | Financial Planning | Trust & Estate Services | Business Banking property tax liability would quadruple to $400,000 after the merger. — Sherri Begin DBpageAD.qxd 10/8/2008 11:56 AM Page 1 20081013-NEWS--0018-NAT-CCI-CD_-- 10/9/2008 4:03 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS October 13, 2008 PEOPLE EDUCATION opment, the Ann Arbor Summer Fes- tival, Ann Arbor. Rick Bunch to managing director, Erb IN THE SPOTLIGHT Institute for Global Sustainable Enter- Miriam Imerman to prise at the University of Michigan, Margaret Loebl major gifts officer, Ann Arbor, from senior fellow, Chi- has been The Leukemia and nese CSR Business Education Initia- named Lymphoma tive, The Aspen Institute, New York. corporate vice Society, Madison president, CFO Heights, from di- ENTERTAINMENT and treasurer rector of planned of Southfield- giving, Henry Fred Pletsch to associate commis- based Ford Health Sys- sioner, Central Collegiate Hockey As- tem, Detroit. sociation, Farmington Hills, from di- TechTeam Global Inc., a Michaelle rector of communications. Also, Rehmann to Farm Courtney Welch to director of commu- provider of IT services. Imerman to School program nications and community relations, Loebl director, The Food System Economic from communications manager. Loebl, 48, had Partnership, Ann Arbor, from analyst. Rachel Sutton to been group vice president of marketing coordi- finance for Archer Daniels Midland REAL ESTATE nator, Suburban Co. in Decatur, Ill. Ryan Williams to project manager, Sports Group, She replaces Marc Lichtman, who Grubb & Ellis Co., Southfield, from Farmington Hills, announced in June he would be project manager, DeMaria Building from sales and leaving the company after a Co., Novi. marketing coordi- transition period. Jonathan Dwoskin to sales manager, nator, Plymouth Loebl earned a bachelor’s degree Detroit office, Marcus & Millichap Whalers, Ply- in German and minored in Real Estate Investment Services, mouth. economics at Wellesley College in Southfield, from associate vice presi- Massachusetts. She earned an dent investments. Sutton FINANCE MBA with areas of concentration in Joseph Gatliff to associate, industrial Patrick Skiles to senior vice president, finance and international business brokerage team, CB Richard Ellis, Commercial Banking Group, TCF from the University of Chicago Southfield, from office brokerage as- Bank, Livonia, from senior vice presi- Graduate School of Business. sociate, Grubb & Ellis Co., Southfield. dent specializing in middle market lending, National City Bank, Troy. William Kowalski to vice president, Ker- SERVICES by, Bailey and Associates, Troy, from as- Adrienne Alexander to manager, CJR sistant special Solutions, Troy, from owner, DBG, agent in charge, Southfield. FBI, Detroit. Gerald Chiddick to SUPPLIERS vice president of business and prod- Stefan Lenz to gen- uct development, eral manager, au- Amerisure Mutual tomotive, Elmos Naturally rare...Naturally precious...Naturally eternal Insurance Co., North America, Farmington Hills, Farmington Hills, from senior mar- from international keting officer-vice director of sales, Kowalski president, Zurich Optrex America North America, Baltimore. Inc., Plymouth. Russ Fleming to partner, construction Steven Proctor to and real estate team, Virchow Krause & president, AAM- A LOVE AFFAIR WITH COLOR Co. L.L.P., Southfield, from partner, Vir- Asia, American chow Krause & Co. L.L.P., Minneapolis. Lenz Axle & Manufactur- ing Holdings Inc., Detroit, from vice FOOD president, sales and marketing. Also, Curt Howell to vice president, driveline GZmnkZeo^gm^q\enlbo^erZmMZii^kl Matthew Ilitch to full frame operations, from vice presi- president, Blue dent, global driveline operations; John Line Foodservice Jerge to vice president, driveline pascar Distribution, operations, from vice president, human Farmington Hills, resources; Robin Kendrick to vice presi- from vice president, driveshaft and halfshaft opera- dent of operations tions, from general manager, global dri- and distribution. veshaft and halfshaft operations; Charles Comeau to executive director, HOSPITALITY human resources, from executive direc- Ilitch Justin Presnol to tor, HR operations; John Salter to execu- general manager, Hilton Garden Inn, tive director, sales and marketing, from Detroit, from assistant general man- executive director, driveline programs; ager, Southfield Marriott, HEI Hotels and Thomas Szymanski to executive di- & Resorts, Southfield. rector, manufacturing planning, from executive director, corporate manufacturing services unibody vehicles drive- LAW line. Matthew Hiser to shareholder, Thrun Law Firm P.C., Bloomfield Hills, from TECHNOLOGY member, Dickinson Wright P.L.L.C., Bloomfield Hills. Robert Crockett to CEO, Ecology Coat- ings Inc., Bloomfield Hills, from president, exterior painted products busi- MEDIA ness and vice president of sales, Jeff Taylor to senior managing editor, Plastech Engineered Products, Dear- Detroit Free Press, Detroit, from manag- born. ing editor-news and features. Also, Friday, October 17th & Saturday, October 18th Stephen Henderson to editor and opinion editor, from deputy editorial page EOPLE GUIDELINES editor and weekly columnist; Ron Dz- P wonkowski to associate editor, from edi- Announcements are limited to *)Zf&.3-.if%P^lm;ehhfÛ^e] torial page editor; Julie Topping to man- management positions. Nonprofit aging editor, from managing and industry group board editor-newsroom operations; Ritu Seh- appointments can be found at gal to deputy managing editor for news www.crainsdetroit.com. Send and features, from assistant managing editor; and Steve Dorsey to deputy man- submissions for People to Joanne aging editor for presentation and inno- Scharich, Crain’s Detroit Business, vation, from assistant managing editor. 1155 Gratiot Ave., Detroit, MI 48207-2997, or send e-mail to NONPROFITS [email protected]. Releases must contain the person’s name, Erica Karfonta to director of Liv- ingston County services, Oakland Liv- new title, company, city in which Orchard Mall, West Bloomfield . 248.932.7700 .. Twelve Oaks Mall, Novi . 248.465.1800 www.tappers.com ingston Human Service Agency, How- the person will work, former title, ell, from distribution center manager former company (if not promoted for Livingston County, Gleaners Com- from within) and former city in munity Food Bank, Howell. which the person worked. Photos Astrid Giese to associate director are welcome, but we cannot Michigan Youth Arts Association, guarantee they will be used. Birmingham, from director of devel- 20081013-NEWS--0019-NAT-CCI-CD_-- 10/9/2008 4:06 PM Page 1

October 13, 2008 CRAIN’S DETROIT BUSINESS Page 19 BUSINESS DIARY ACQUISITIONS tional-The Association of Credit and Collection Professionals, Minneapo- AkzoNobel, a Troy paint and coatings lis. supplier, has acquired Soliant L.L.C., a Lancaster, S.C., manufacturer of decorative paint and bright films. EXPANSIONS Finn and Porter has been chosen as the CONTRACTS new steakhouse in the Fort Shelby Doubletree Guest Suites Hotel in Technical Training Inc., Rochester downtown Detroit. Its menu is to in- Hills, will provide dealer technical training for Russian automaker Gorky clude steak, sushi, seafood and a Sun- Automotive Works. Technical Train- day gospel brunch. The restaurant ing Inc. will train 80 dealerships and chain has locations in Austin, Texas; 140 automotive technicians in support Missoula, Mont.; Alexandria, Va.; and of Gorky’s new car, the Siber. Washington, D.C. Rofin-Sinar Technologies Inc., Ply- Ricardo Inc., Van Buren Township, is mouth, and Manz Automation AG, expanding its Shanghai-based Chi- Reutligen, Germany, have entered nese operations with a new Shanghai technical center and also is building a 345 new jobs into a joint project to develop a new machine concept for the production of testing center in the Anting “Auto thin-film solar modules. City” area west of Shanghai. created from business Brendy Barr Communications, Oak- Planned Parenthood Mid and South land Township, has been hired by Michigan has opened a new health Managing Thought L.L.C. to provide center at 4229 Cass Ave., Detroit. Web public-relations support to promote site: www.plannedparenthood.org/ acceleration programs. the release of West Bloomfield Town- midsouthmi. ship resident Mary Lore’s new book, Managing Thought: How Do Your NAME CHANGES And counting. Thoughts Rule Your World? The Law Firm of Levine, Benjamin, DesignHub Inc., Saline, designed and Tushman, Bratt, Jerris and Stein P.C., developed the new Web site for the Southfield, to Levine Benjamin. Web Adashi 3.0 incident response and com- site: www.levinebenjamin.com. mand software (www.adashi.org) from OptiMetrics Inc., Ann Arbor. NEW PROGRAMS You can count on Hile Design L.L.C., Ann Arbor, developed a new Web site for the Rockwell Evigia Systems Inc., Ann Arbor, has Lake Lodge, a conference and retreat introduced its EV3 product line of center in Luther, at www.therockwell- RFID active transponders, interroga- Automation Alley. lakelodge.com. The lodge is on the tors and accessories. Web site: grounds of Hillsdale College’s G.H. www.evigia.com. Gordon Biological Station in North- western Michigan. STARTUPS To learn more or join, call 800-427-5100 UHY Advisors MI Inc., Southfield, an- Metro Detroit Speed Dating, Ferndale, or visit automationalley.com nounced a partnership with Detroit plans to schedule weekly speed-dating Cristo Rey High School. The business events in the Detroit area. Up to 96 sin- advisory firm participated in the new gle men and women meet during Catholic high school’s summer work- eight-minute dates and decide Where technology builds opportunity study internship program. Every whether or not to see their dates Cristo Rey student takes part in the again. Steve Neavling is the organiza- program to gain work experience and tion’s founder. Telephone: (586) 306- earn tuition. 5572. JankowskiCo., a Troy-based advertis- Seniors Helping Seniors is designed to ing agency, has launched a new connect Macomb County seniors who branding initiative for the West have an ability to help others with Michigan Academy of Environmental those who need assistance. Founder Al Science, a Grand Rapids charter Caicedo is a certified senior consultant school. who is building rosters of both groups. Qualitech, Bingham Farms, was selected by Biosan Laboratories Inc., a OTHER Warren microbiological testing kits company, to upgrade its computer net- NSF International, Ann Arbor, an- work with a new Intel network server, nounced Premium Waters Inc., a Min- new high-speed continuous backup neapolis-based bottled water compa- technology, off-site disaster recovery ny, is among the first to receive Safe storage and new workstations. Quality Food Code 2000 Certification. Attendance on Demand Inc., Farming- Premium Waters plants in Kansas, ton Hills, has been selected by the Texas, Wisconsin, Illinois, Tennessee North Carolina-based Piedmont Triad and Georgia have received the volun- Airport Authority to monitor and track tary certification. employee time and attendance. Bright House Networks, Livonia, is of- Grand River Interactive, Ann Arbor, fering its cable television customers completed a new e-commerce Web free on demand viewing of the presi- site, www.gandermountain.com, for dential and vice presidential debates Gander Mountain, a St. Paul, Minn.- on C-SPAN. All four debates will be based outdoor sporting goods retailer. available until Nov. 6 on channel 123, Nudell Architects, a Farmington Hills- Elections ’08 On Demand. based company, has teamed with J.C. Oakland County Community Mental Penney Co. Inc., Dallas, to design the Health Authority, Auburn Hills, has re- first building to earn the Energy Star ceived a three-year accreditation from standard from the U.S. Environmental CARF (formerly known as the Com- Protection Agency. The J.C. Penney mission on Accreditation for Rehabili- store is under construction in Pleas- tation Facilities). The authority pro- ant Prairie, Wis. vides services and supports to over Covisint, Detroit, and a Minneapolis- 16,000 county residents with develop- based coalition announced an agree- mental disabilities, adults with seri- TH ment to build the Minnesota Health In- ous mental illnesses and children 10 ANNIVERSARY CELEBRATION formation Exchange, an electronic with serious emotional disturbances. network to give the state’s health care ENJOY OUR SPECIAL MENU FEATURING A 3 COURSE MEAL FOR $47. providers patient-controlled access to For a limited time only. medical information. Creative Brands, a Warren food dis- tributor, has purchased the rights to DIARY GUIDELINES Bulldog Seafood sardines. Creative Send news releases for Business Brands plans to expand the Bulldog Diary to Joanne Scharich, Crain’s Seafood product line to other prod- Detroit Business, 1155 Gratiot ucts, including hot sauces, spices and Ave., Detroit, MI 48207-2997 or other canned seafood. send e-mail to jscharich@crain. Clor & Associates, a Grosse Pointe com. Use any Business Diary item Farms manufacturers representative as a model for your release, and and consulting agency, has added look for the appropriate category. AQC-Dust Collectors and Capture Without complete information, your Equipment and Emerald Air Systems item will not run. Photos are to its line of products. welcome, but we cannot guarantee Sutariya Law Offices P.C., Westland, they will be used. www.Camerons-SteakHouse.com has become a member of ACA Interna- s DBpageAD.qxd 10/3/2008 2:27 PM Page 1

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October 13, 2008 CRAIN’S DETROIT BUSINESS Page 33

Economy in turmoil Local: Buy-local movement grows as the economy shrinks ■ From Page 1 and the hotel’s chef, Bradley Durr, he said. “It’s a question of con- a year ago in an effort to help con- Diggs said her team is working case with Bearclaw Coffee. was chosen in part because of his science, not that people out of town nect consumers with products and on statistics that would quantify Dunavent gave her the meeting emphasis on locally grown foods are better. It’s habit, because peo- businesses with businesses. the economic impact of increased on the Doubletree deal because her and his plans to host special events ple have never thought about, Businesses listed on the site are Michigan business-to-business company is local, but getting the featuring Michigan foods and ‘should I buy out of town or not?’ searchable by keyword, category, spending. deal was hard work. wines. as long as it’s American.” location and an identification tag “If each of the businesses regis- “This was no gimme,” she said. “It’s a philosophy that we’ve en- Dalto is calling for state and lo- that explains whether the business tered in Michigan spent a hundred “We saw it as a good opportunity dorsed, to use local products and cal government, chambers of com- is headquartered in the state, an and we threw the book at it. We services whenever possible,” said dollars more in-state each year, merce and other business advo- fought for it.” Gene Curtis, one of the hotel’s in-state franchise or operates sole- you start to see how the numbers three-person ownership group. cates to step up encouragement of ly in Michigan. grow pretty quickly,” she said. Daniel Duggan: (313) 446-0414, “It’s something we should all feel the benefits of buying local. “We found that businesses would Being local won’t always get the [email protected] obligated to do.” Lisa Diggs founded buymichigan- do more if they didn’t have to go out deal done, but can help a company Nancy Kaffer: (313) 446-0412, Buying local is a concept that now.com and started the site about and do a search process,” she said. get a foot in the door. That was the [email protected]. goes beyond altruism, advocates say. With the state’s economy slug- gish at best, experts say spending locally holds significant potential to boost Michi- gan’s economy. Since Gov. Jennifer Granholm di- rected the state to give preference to Michi- gan-based vendors, billions of Sharpe dollars have stayed in-state, said Lisa Webb Sharpe, director of the state Office of Management and Budget. “If we look back at last year, about 93 percent of our contract dollars were awarded to Michigan- based vendors,” she said. “That’s about $4.4 billion. I think with the state in the situation it’s in, there’s a growing awareness that every person should be using vendors that are primarily in Michigan.” The state’s criteria don’t require a vendor to be headquartered in Michigan — Webb Sharpe notes that a Michigan-headquartered business can outsource its jobs — but must create jobs in-state. “We’re not talking about cutting down on quality or paying exorbitant prices, we’re talking about competitive business,” she said. Buying local isn’t a new concept. A laundry list of companies from big names like Domino’s Pizza Inc., Wal-Mart Stores Inc. and Frito- We can help you fatten up your Lay North America to local business- customer base without thinning out es like Ferndale’s Woodward Avenue Brewers, Detroit’s City Knits and your wallet. Warren-based Produce Palace make a point of using local goods and services. Michigan Wal-Mart stores pur- New memberships starting at $80 will chase pumpkins, onions and pota- cut overhead costs and help you attract toes from local growers, said Tara Stewart, a Chicago-based regional new business. director of media relations for Wal-Mart. “It’s good for the planet, good for Join this month to be included in our 2009 the local environment and people membership directory. Call 313.596.0300 enjoy supporting local farmers in or go to www.detroitchamber.com the store,” she said. Nationally, Wal-Mart expects to source about $400 million in locally grown produce this year, Stew- art said. Michigan-specific numbers weren’t available. Businesses that don’t use local vendors may do so as a matter of habit, said retail consultant Ken- neth Dalto of Farmington Hills- based Kenneth J. Dalto and Associates. “I see businesses all over town, and when I look at their vendors, half to 65 percent are out of town,” 20081013-NEWS--0034,0035-NAT-CCI-CD_-- 10/10/2008 6:04 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 13, 2008

Economy in turmoil GM wants RenCen off books, but a deal will be tough in tight market

BY DANIEL DUGGAN conditions aren’t favorable even in good times,” he said. “It part in a sale-leaseback — such as real estate investment CRAIN’S DETROIT BUSINESS would be tough for any company right now; even a company trusts, national pension funds and other institutions — aren’t like GE would have a challenge.” lending money right now. Executives from General Motors Corp. made a presentation General Electric Co. hasn’t fared as badly as most “They couldn’t have picked a less opportune time for last week to the board of directors of the city of Detroit’s Po- companies during the recent financial upheaval. this,” he said. lice and Fire Retirement System. Taking the deal to the local pension funds is Morris also noted that the Renaissance Center shouldn’t The goal was to find investment capital to tap into the eq- a strategy that may work for GM because local be considered a single-tenant building. uity the company has in the 2.3-million-square- decision-makers may be more sympathetic. GM occupies 65 percent of the office space, according to foot Renaissance Center in Detroit. “But no options should be off the the Bethesda, Md.-based real estate research company Commercial real estate consultants say it’s table,” he said. CoStar Group. But tenants other than GM, such as Pepper been hard for compa- For GM to go from being a nies to recapitalize Hamilton L.L.P., Dykema Gossett P.L.L.C. and Deloitte, occupy 17 tenant to a landlord would get percent of the space. GMAC has 10 percent of space in the their assets in the current market, given the real estate off its books and building; 8 percent is vacant. credit crunch and down economy. bring in cash, said Steve Mor- “It’s still a trophy property with a riverfront view, cov- In the current conditions, most companies ris, managing partner of the ered parking and major, major upgrades,” Morris said. would have a hard time finding an investor Newmark Knight Frank office in “And there’s a nice mix of tenants there.” for a sale-leaseback deal, said Jeff Shell, exec- Farmington Hills. But the cor- utive director, capital markets, in the Grosse poration would become a ten- Dan Flores, GM manager of corporate news relations, said Pointe office of Cushman & Wakefield’s capital ant and would be faced with the GM team had not gotten word from the pension board as markets group. long-term rent payments. of Friday morning. He said a large real estate asset like the Re- But the usual suspects to take In May, GM paid $626 million to buy the structure out naissance Center would be underwritten based from underneath a sophisticated lending structure called a General Motors Corp. paid $626 on a combination of the underlying real estate synthetic lease in which the company had the tax benefits of million for the Renaissance values and the credit of the tenant. Center in May. ownership but didn’t have the liability of listing the asset on “Based on the situa- its books. tion with each, those Daniel Duggan: (313) 446-0414, [email protected]

Credit unions: Doing a booming business as banks tighten credit ■ From Page 1

lending. $500,000, it went much higher than it unions become approved lenders you can do to provide funding for Farmington Hills-based Community Ann Arbor-based Michigan Busi- that on two recent loans to finance by the U.S. Small Business Adminis- the business community is impor- Choice Credit Union. ness Connection L.L.C., a subsidiary construction of a new heart center tration. Beardsley said the sub- tant,” he said. But the loss of business they in- formed in 2004 by five credit and a new eye center on the St. sidiary helped credit unions do Eight local credit unions curred then means they have unions when federal regulations Joseph Mercy Hospital campus in three SBA loans totaling $1.4 mil- formed Troy-based Commercial Al- avoided the pitfalls of write-offs, were eased to allow credit unions Ann Arbor, according to Bill lion since the program began in liance L.L.C. in 2004 to do commer- delinquencies and vanishing liq- to do commercial lending, has Beardsley, MBC’s president and 2006, and is in the process of clos- cial lending. It did $24 million last uidity. originated $150 million in loans. chief lending officer. ing six loans for about $4 million. year and expects to do up to $35 “I’d hear these radio ads about Although the average loan is MBC also helps individual cred- “In this environment, anything million this year, according to how they were doing loans for 110 CEO and President Terry percent of home value and inter- McHugh. It is also offering collat- est-only loans and I’d come back to eralized lines of credit to credit the office and call my members union members who have been and ask them: ‘Are you doing this cut off from traditional lines of stuff?’ ” said Adams. “They credit at banks. weren’t. They took a pass on that “We’re really going out into the stuff, and I’m glad they did.” community and spreading the Credit unions also avoided the word,” said McHugh. “We’re see- short-term gain of reselling mort- ing more opportunity than ever. gages. They held on to the vast ma- People even with great credit are jority of loans they originated. being chased out by banks facing “There’s a flight to quality, so liquidity crises.” our deposits are up,” said Mark “We’re jittery about the broader Shobe, president and CEO of Dear- markets, but our business is born-based DFCU Federal Credit good,” said David Adams, presi- Union, the state’s largest with dent and CEO of the Northville- 170,000 members and $2 billion in based Michigan Credit Union League. assets. Shobe said DFCU’s capital- Adams said that as of June 30, to-asset ratio is 15 percent. industry data show Michigan’s 353 “We are portfolio lenders. We credit unions have added 6 percent hold the paper, so we actually in assets for a total of about $34.4 want to get repaid. It’s in our inter- billion, and are on pace to add est to make sure customers don’t 100,000 new members for a total of get in over their heads,” he said. about 4.5 million members. “We simply did not go out on the He said the average capital-to- risk curve.” asset ratio in Michigan credit “We take in deposits and make unions is 12.2 percent, a point loans. And as long as you charge higher than the national average more on loans than you pay on de- for credit unions, two points above posits, you make money,” said what’s considered a healthy target Gary Moody, president and CEO of for commercial banks by the Feder- Ferndale-based Credit Union One. al Deposit Insurance Corp. and about “It’s the old-fashioned way.” double the average for the state’s Here are examples of portfolio banks in the current banking cri- growth at area credit unions: sis. Through Sept. 30, DFCU’s Adams and credit union execu- mortgage originations were at tives say their conservative lend- $100.3 million, up 56 percent over ing practices hurt them in the re- the same period last year. Its used- cent go-go years of interest-only car loans were up $16 percent to and no-documentation loans. $51.8 million. “When we said, ‘No, we can’t do The real estate loan portfolio that subprime mortgage for you,’ of Bloomfield Hills-based T&C Fed- they went down the street,” said eral Credit Union is up 11 percent Rob Bava, president and CEO of See Credit unions, Page 35 20081013-NEWS--0034,0035-NAT-CCI-CD_-- 10/10/2008 6:04 PM Page 2

October 13, 2008 CRAIN’S DETROIT BUSINESS Page 35

Economy in turmoil Market freefall takes huge bite out of corporate pension plans

BY MARK BRUNO As the broad equity markets AND TOM HENDERSON TALK TO AN EXPERT were slammed over the first five CRAIN’S DETROIT BUSINESS days of the month — the Dow Jones Economist David Allardice will hold Wilshire 5000 Index declined more Less than a year after most com- a conference call at 10 a.m. than 15 percent, its worst five-day Tuesday to discuss the panies were operating with com- return since October 1987 — corpo- fortable pension surpluses, many international financial rate pension funds’ assets shrank, are now staring at the strong possi- marketplace. while their liabilities remained bility of ending 2008 with their de- Allardice, who largely unchanged, said Adrian fined benefit plans well in the red is director of Hartshorn, a consultant in Mer- — an outcome that would require Walsh College’s cer’s financial strategies group. corporations to cough up consider- doctoral That combination likely means able chunks of cash, seemingly at programs, that, collectively, the defined bene- the worst possible time, to plug worked for the fit plans at the 1,500 largest U.S. holes in their pensions’ funding Federal Reserve corporations are now only about levels. Bank of 90 percent funded. Large corporate pension plans Allardice Chicago for 27 years. Now, when companies do their appear as if they’ve taken an as- required annual actuarial evalua- tounding blow this month, losing He will speak for up to 20 minutes and then take calls from listeners. tions at year-end, it appears almost an estimated $100 billion of their certain that a number of large cor- Those interested in participating combined funded status over just porations will close their books five days. should call (866) 879-9618 after 9:30 a.m. The conference with underfunded plans, said John But the hit won’t be nearly as identification number is Erhardt, principal and consulting bad as it might seem, said Sam 68596222. actuary for Brookfield, Wis.-based Valenti III, president of Masco Cap- Milliman USA. ital Corp., the investment sub- tion and is aligned with your As part of the Pension Protec- sidiary of Masco Corp. needs.” Sowerby said the state’s tion Act of 2006, companies with Valenti said stocks likely will refund, which has fallen below $60 underfunded plans are now forced bound by the end of the year, when billion, is almost 60 percent invest- to make more aggressive contribu- pension funds do their accounting, ed in public stocks. tions in order to get their pensions but even if they remain at current “You don’t get too giddy in bull 100 percent fully funded. lows, paper losses from stock in- markets or act irrationally near The rules also assigned a specif- vestments won’t translate into dol- the bottom of bear markets. ... ic seven-year timetable in which a lar-for-dollar replacements from company must amortize payments These are the times when you working capital. to make up for the shortfall. prove your worth,” he said. “It’s complicated math, and you The extent to which large corpo- Collectively, the 1,500 largest make it up over a period of years. rations’ pension funds will be dam- It’s not as dramatic as it seems,” U.S. corporations had $1.66 trillion aged will vary greatly, and will de- he said. “The real drama is if you in defined-benefit assets at the end pend, of course, on the way their are an auto dealer and you can’t fi- of last year to cover $1.6 trillion in assets are invested. nance a sale.” pension liabilities, an ideal bal- Some, such as General Motors “Thankfully, actuaries take a ance, according to data from pen- Corp., have made major moves to very long view to smoothing the sion consultants at New York City- trim their exposure to equities and ups and downs of the market,” said based Mercer Human Resource insulate their portfolios from David Sowerby, portfolio manager Consulting. volatility. GM, the largest corpo- and chief market analyst for But these plans, on average, rate pension plan, had only 30 per- Bloomfield Hills-based Loomis have about two-thirds of their as- cent of its $117 billion in assets in- Sayles & Co. L.P., who is also chair- sets invested in the equity mar- vested in equities at the end of last man of the investment advisory kets, and by the end of last month year, with the remainder invested committee for the State of Michigan were only 97 percent funded. in fixed-income and alternative in- Retirement Systems. It’s a major hit by any stretch, vestments. In 2005, the company “As frustrating as these bear but it pales in comparison to the had almost half its pension assets markets are, here’s why you de- most recent losses these plans ap- invested in the equity markets. sign a strong allocation and invest- pear to have just sustained, cour- Mark Bruno is a reporter with ment policy that seeks diversifica- tesy of one extremely Red October. Pensions & Investments.

Credit unions: Ready to lend money ■ From Page 34 over a year ago to $179 million. In might do that in six to eight based Detroit Edison Credit Union did September as a result, the end of months,” said Bava. Auto loans in $21.6 million in home loans, up captive financing of leases by some the third quarter were at $14.2 mil- from $14.3 million for the same pe- auto manufacturers, auto loans lion, up from $10.3 million in the riod last year. doubled to about $1.4 million. second quarter. “We haven’t pulled in our horns (T&C’s merger with USA Credit Clinton Township-based at all. We could do a lot more,” said Union has been approved by mem- Michigan Schools and Government President and CEO Bill Thiess. bers and state and federal regula- Credit Union has seen 11 percent as- “We’re also starting to see an in- tors and goes into effect Nov. 1.) set growth this year, to $900 mil- flux of new deposits, and we expect Credit Union One did $32.9 million. Auto loans in August and that increase to be dramatic.” lion in auto loans from June 1-Sept. September were up 36 percent to “We have plenty of money to 30, up from $19.7 million for the $7.6 million from the same period loan, absolutely,” said Michael Pou- same period last year. For the first last year. Commercial loans are up los, president and CEO at Michigan three quarters, it did $54.2 million in 40 percent over last year to $24 mil- First, which has 70,000 members mortgages, up from $40 million for lion, and real estate loans are up 11 and $490 million in assets. the first nine months last year. percent to $452 million. “We have plenty to lend. We’re Community Choice Credit Community Financial did $2.4 trying to get the word out,” said Union has done $9.6 million in million in auto loans in June. In Bava. mortgage loans in the last three September it did $4.5 million. Tom Henderson: (313) 446-0337, and a half months. “Typically, we Through August, Detroit- [email protected] 20081013-NEWS--0036,0037-NAT-CCI-CD_-- 10/10/2008 5:45 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS October 13, 2008 Flint: Entrepreneurs spur downtown redevelopment projects ■ From Page 1 boosters and business leaders will- victories that they hope will keep ing to put their own money into DOWNTOWN FLINT PROJECTS THE UPTOWN SIX the region’s momentum going. economic development. Near downtown, the University of It follows a strategy to stream- 2009 completion Cost A group of individual investors who Michigan-Flint recently opened a $21 line government and find local, bought in on the plan for downtown million, 309-unit student housing Durant Lofts $23,000,000 private investment dollars to rein- buildings for $166,000 each in development, the first dormitory 2002. There are now eight vest in the city, said Tim Herman, Rowe Building $20,000,000 project in the city. members: CEO of the Genesee Regional Cham- Flint DDA deck and ramp $10,000,000 The Flint Institute of Arts under- Original members: ber of Commerce, which has been Witherbees Market $1,900,000 went a $20 million renovation and coordinating downtown develop- Ⅲ Troy Farah, co-owner of the expansion. Capitol Theatre ment efforts. 2008 completion Cost And, GM commited to build the Streamlining University of Michigan-Flint student housing $27,000,000 Ⅲ Gary Hurand, president, new Volt in Flint. The project in- Management Diversified Inc. the economic de- Wade Trim Building $5,500,000 cludes a new $326 million, 530,000- velopment ef- Ⅲ Alfred Kloss, president and square-foot engine plant at a Berridge Lofts $5,000,000 CEO, Daystar Development Corp. forts had to Community Foundation Building $3,000,000 brownfield site, expected to retain come first, Her- Ⅲ Ghassan Saab, president and 450 jobs. While a victory by all ac- Kearsley Street campus link $1,900,000 CEO, Sorensen-Gross Construction man said. So the counts, the jobs don’t bring Flint Carriage Town antique mall $300,000 Services regional cham- anywhere near the 80,000 automo- Ⅲ Philip Shaltz, president, ber was created tive jobs it once had. 2007 completion Cost Automation Inc. in 2006 when it Herman said the key to the fu- Ⅲ James Petty, owner, Petty was decided Flint Mass Transit terminal $6,300,000 ture for Flint is to diversify. Herman Saginaw Street gateway beautification project $3,000,000 Investments. (No longer in the there were far group.) One direction is to market the too many groups trying to do the area as a logistics hub. The city Those joining later: same thing. 2006 completion Cost lies at a crossroads of I-75, I-69 and Ⅲ George Falaras, owner, Blue Prior to the consolidation, Flint Institute of Arts $20,000,000 U.S. 23. In addition, there is access Collar Gourmet Restaurant Group Flint’s economic development was First Street Lofts $7,200,000 to rail freight lines. Ⅲ LaVal Perry, president, All- handled by the Flint Area Chamber The former Buick headquarters Rosewood Riverfront Townhomes $5,300,000 American Ford Lincoln Mercury of Commerce, Flint-Genesee Econom- site, now sitting vacant, lies at the Ⅲ The Uptown Reinvestment Corp. ic Growth Alliance, Genesee Area Fo- 2005 completion Cost intersection of the CSX railroad cus Council Inc. and the Metropolitan Genesee County Courthouse $26,000,000 running north-south and the CN for the Blackstones Building. Chamber of Commerce. Flint Institute of Music $9,000,000 railroad, running east-west. “They all stood up and said, But there are still retail vacan- In addition, Bishop International Genesee County Land Bank Center $5,000,000 ‘let’s go down this road together,’ ” cies as the group looks for the Airport in Flint has built its indus- Manhattan Place Lofts $3,600,000 said Herman. right tenants. trial capacity and moved $34.2 mil- And since then, the chamber has 2004 completion Cost “We’ve had offers from chain lion pounds of air freight in 2007. done much more than be a cheer- fast-food restaurants, but that’s The amount of freight spurred a leader for the city. South Saginaw streetscaping project $2,200,000 not the kind of business we’ve $33 million expansion by FedEx. Herman doubles his role as CEO Vehicle City arches $700,000 been looking for in the down- The rail, road and air combina- of the regional chamber by being a Economy Shoes Building $500,000 town,” White said. “We’re looking tion has made the site appealing to board member of the nonprofit Up- for restaurants that are going to national players in the logistics town Reinvestment Corp. The non- 2003 completion Cost drive downtown traffic.” business. profit has been a joint-venture Mega Coney Island $300,000 Buildings without leases don’t Flint-based Mid-Michigan Global partner with the Uptown Six in Source: Genesee Regional Chamber of Commerce move forward, White said. Link L.L.C., with investment money three recent downtown projects. “Every project has to be 75 per- from Chicago-based Guggenheim Progress is visible in the down- tion of Greater Flint. ists, and there are four applica- cent leased or have a credit tenant Franklin Park L.L.C., is in negotia- town area along South Saginaw Leasing activity has been strong tions pending for that unit. to cover the debt,” White said. tion to invest $25 million for a lo- Street. on the residential side, said Ridg- A small-business success can be gistics operation in Flint, employ- The Rowe Building is under con- way White, associate program offi- Restaurant leasing challenges found at the Economy Building. ing an estimated 550 people over struction. The four-story building cer with the C.S. Mott Foundation, Constructed in the 1800s, it became multiple phases. will house the offices of Rowe Engi- which has been a financial partner The biggest hurdle has been the home to Brown Sugar Cafe three For a metropolitan area, home neering and have eight loft apart- for several downtown projects. leasing the restaurant components years ago. runs are hard to come by. But Her- ments, all leased. White is the great-grandson of of the various buildings. “It wasn’t a hard decision,” said man believes in an “inch-by-inch” Across the street, an 80,000- Charles Stewart Mott, the automo- White’s pitch seems appealing: co-owner Julie Prince. “We looked approach to developing the Flint square-foot building is under con- tive industrialist whose family’s There are 25,000 students in the at a lot of places, but kept coming region. struction to be anchored by De- bicycle wheel-making business downtown area — 1,500 living down- back to wanting this. And right now, he believes troit-based engineering firm Wade was acquired by Buick Motor Co. town — along with 7,000 employees. “And downtown can only get there’s traction. Trim. Flint-area television station and then General Motors Corp. And it’s a matter of the right better. If we can survive the first “There has been a lot of nay-say- WNEM-TV Channel 5 also leased the In the recent rehab of the First product at the right time. three years, we’ll do better as the ing in our community,” he said. first floor to use as a backdrop for Street Lofts Building, the 16 lofts “Urban is in,” he said. downtown grows.” “But a lot of them are now starting its live newscasts. in downtown Flint are 100 percent A recent leasing victory landed to believe. If we can turn that nega- Also on the list of recent projects leased, he said. Soyla’s, a Mexican restaurant at tive thinking around, we can get is the renovation and reconstruc- Other lofts downtown are nearly the Wade Trim building. A second Development outside downtown this going.” tion of a 15,000-square-foot build- 100 percent leased. Of the 30 lofts comes this week when an Irish Herman and others point to oth- Daniel Duggan: (313) 446-0414, ing to house the Community Founda- downtown, only one vacancy ex- pub-style restaurant is announced er recent economic-development [email protected]

Sanders: Candy-maker hopes to revive its retail heyday ■ From Page 3 no matter how ubiquitous it once was. and expects to spend twice that. a connection to the brand of yore,” he said. haul of the seven existing stores, some that “It takes a certain individual, and that’s Pilon, 45, has been working with Novi- “Sanders has to do this in a smart way,” are located in malls, such as Laurel Park Place why Walter’s here,” Rapson said. “He knows based PPC Design on a template for a new he said. “If they’re going to focus on the in Livonia, and others in small downtowns the business and will help lead us down the Sanders store. Picture the past with a twist: younger audience, they should not spend too like Grosse Pointe and Wyandotte. right route.” marble counters, Edison lighting ... and or- much time on nostalgia. The younger audi- New locations are next, and Pilon is on Pilon’s business know-how is blended nate chocolate-dipping stations, Wi-Fi and a ence does not remember and will not identi- the hunt. “It’s about finding the right syner- with his enthusiasm and a determination to blog for every store. fy with it.” gy,” he said. “Where people are moving, be a part of Detroit’s rebirth. “Nostalgia goes into what the stores look Pilon estimates the first of the new stores where there are theaters and restaurants.” “I live in Detroit, which gives me a pas- like, but they will be really cool and hip,” he is at least a year out. He doesn’t rule out a downtown Detroit loca- sion for the product,” he said. “My grandpa says. “We’re looking for a ‘wow’ factor.” “We’re finalizing the design, finding the tion. and grandma, my parents loved Sanders. Relaunching a brand, even one as well right spaces,” he said. “We’re creating a new Pilon realizes that a sundae might not be This is a chance to give back to the city with known as Sanders, carries a slate of chal- tradition. This is a major investment to something the average consumer wants an original Detroit product.” Plus, “during lenges, said Tom Nixon, a principal at Bing- recreate this feeling of history we have, this every day. And that’s where his past comes tougher economic times, everyone wants to ham Farms-based Identity Marketing & Public longevity in Detroit.” in handy. fall back on fonder memories.” Relations L.L.C. Pilon said Morley plans to be “fairly ag- “We need something for the everyday In 2006, Sanders brought in $12 million in “When you have a heritage brand like gressive,” aiming to hit 50 stores in the next type of environment,” he said. “After all, revenue. In 2007, that grew to $13 million. Sanders, people over the age of 30 remember decade — the same number that existed at you can’t have a Cinnabon every day, but So far, Pilon said, the company’s spent and connect with it, but the challenge is con- Sanders’ peak in the 1960s. you can have a cup of coffee every day.” $2.5 million to relaunch the Sanders brand necting with an audience that doesn’t share The first order of business will be an over- Nancy Kaffer contributed to this report. 20081013-NEWS--0036,0037-NAT-CCI-CD_-- 10/10/2008 5:45 PM Page 2

October 13, 2008 CRAIN’S DETROIT BUSINESS Page 37 Film: Conference aims Limits bill in production www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 PUBLISHER Mary Kramer, (313) 446-0399 or to put more of [email protected] “We have a budgetary cently opened a Troy office for EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] problem. Next year, a Los Angeles-based S3 Entertain- HOW INCENTIVES WORK MANAGING EDITOR Andy Chapelle, (313) 446- $300 million deficit is al- ment Group and is lobbying to 0402 or [email protected] ready being predicted,” Ⅲ Application and $100 fee preserve the incentives. He Oakland County ASSISTANT MANAGING EDITOR/FOCUS Jennette submitted to Michigan Film Office. Smith, (313) 446-1622 or [email protected] she said. “If (the incen- plans to build a Hollywood-style BUSINESS LIVES EDITOR Michelle Darwish, (313) Ⅲ Approval comes from film office tives are) not capped, it soundstage complex in metro De- 446-1621 or [email protected] and state treasurer. COPY DESK CHIEF Gary Piatek, (313) 446-0357 will have a severe impact Ⅲ Must spend at least $50,000 in troit that could have an initial on silver screen or [email protected] GRAPHICS EDITOR Nancy Clark, (313) 446-1608 on the state’s ability to Michigan. price tag of $30 million, but he or [email protected] provide obligated ser- Ⅲ 40 percent cash rebate on worries the effort to cap rebates BY CHAD HALCOM COPY EDITOR Vic Doucette, (313) 446-0410 or [email protected] vices. While it boosts a lo- Michigan expenditures. An extra 2 could kill interest in Michigan. CRAIN’S DETROIT BUSINESS DATA EDITOR Anne Marks, (313) 446-0418 or cal economy temporarily, percent rebate if the company “It immediately sent a chill to [email protected] it is costing this state.” films in one of 103 “Core Hollywood. The finance folks get So what does it take to blow up a toilet for WEB GENERAL MANAGER Alan Baker, (313) 446- 0416 or [email protected] The budget shortfall Communities,” which include worried Michigan is worried the comic effect in Oakland County? Detroit and many local suburbs. WEB EDITOR Christine Lasek, (313) 446-0473, came from the state’s rev- state isn’t going to pay out any “Well, I understand you need connection to [email protected] Ⅲ Labor and crew: 40 percent to at least a 4-inch water line,” marketing coor- WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) enue-estimating confer- 42 percent rebate on salaries for money,” he said. He’s confident 446-0403, [email protected] dinator Susan Dorris of Oakland County Film ence in May, prior to com- Michigan residents, 30 percent for the cap won’t get past the gover- RESEARCH ASSISTANT Joanne Scharich, (313) said about helping Farmington Hills-based 446-0419 pletion of the 2009 budget. nonresident salaries. nor. EDITORIAL SUPPORT Anita Duncan, (313) As of Friday, the state Ⅲ A cap of a maximum $2 million Spilman’s company pairs West Grace & Wild Studios Inc. coordinate with the 446-0329 Oakland County Drain Commission earlier this NEWSROOM (313) 446-0329, FAX (313) 446- has approved 68 deals salary per employee. There is no Coast producers with Michigan 1687 TIP LINE (313) 446-6766 worth $401.3 million un- other cap and no sunset. talent and equipment and has al- month for a scene in the upcoming David der the incentive legisla- Ⅲ The new film laws also establish ready been hired by several pro- Cross comedy, “Demoted.” REPORTERS a low-interest loan program and an Robert Ankeny: Covers the city of Detroit, Wayne tion, and if all are made ductions, including the Clint Aiding filmmakers with demanding and County government, and law. (313) 446-0404 or infrastructure tax credit as well as and get their post-produc- Eastwood feature “Gran Torino” sometimes odd production requests is a focus [email protected]. a workforce development tax credit of the “Oakland County on Film” conference Ryan Beene: Covers auto suppliers, steel. (313) tion certificates, Michi- for hiring and training current that filmed in Detroit this sum- 446-0315 or [email protected] Oct. 28 at The Somerset Inn in Troy. The coun- Sherri Begin: Covers nonprofits and services. gan will reimburse $151.8 Michigan crew members. mer after moving from Minneso- ty is hosting film location scouts at the con- (313) 446-1694 or [email protected] million starting in 2009, Source: Michigan Film Office ta to take advantage of Michi- Daniel Duggan: Covers real estate and hospitality. said Terry Stanton, pub- gan’s incentives. ference to brief local governments on how to (313) 446-0414 or [email protected] work with filmmakers, and a second confer- Jay Greene: Covers health care, insurance and the lic information officer for the state Treasury, He also predicted fewer than half of ap- environment. (313) 446-0325 or which approves film incentive applications. proved productions will happen due to loca- ence to brief businesses will follow, Dorris [email protected]. said. Chad Halcom: Covers education, non-automotive David Zin of the nonpartisan Senate Fiscal tion, weather, budget and timing issues partic- manufacturing, defense contracting and Oakland Agency, who recently testified in front of the ular to the industry. The county also expects the same day to and Macomb counties. (313) 446-6796 or Senate Finance Committee on the incentive Still, Spilman, along with Royal Oak-based launch a Web page and toll-free phone num- [email protected]. Tom Henderson: Covers banking, finance, cap legislation, said $30.4 million in approved commercial production company Avalon Films ber, (877) 651-FILM, for moviemakers seeking technology and biotechnology. (313) 446-0337 or productions have been canceled since April. Inc., distributed a video recently that features assistance with an Oakland County shoot. [email protected]. Nancy Kaffer: Covers small business and retail. Zin told the committee that the approved pro- Detroit hip-hop artist “Stretch Money” touting At least four productions have requested (313) 446-0412 or [email protected]. ductions, if they happen and meet all require- the benefits of the incentives. Also in the video permit assistance in the past month through Bill Shea: Covers media, advertising and marketing, entertainment, the business of sports, ments, would generate nearly $9 million in new are Eastwood and Meisner. Oakland County Film, a new department in and transportation. (313) 446-1626 or income tax and $18.1 million in new sales tax. “The money we spent here stays in the state the Office of Arts and Culture, Dorris said. [email protected]. Nathan Skid: Multimedia reporter. Also covers the “There’s no way you can get the credit to pay of Michigan,” he said. Another half-dozen or more are expected by food industry. (313) 446-1654, [email protected]. for itself, but that’s true for all credits,” he said. The Michigan Chamber of Commerce, on the spring. LANSING BUREAU Maureen Donohue Krauss, deputy director Amy Lane: Covers business issues at the Capitol, “The question for the Legislature is how much other hand, has been vocal about its dislike of telecommunications and utilities. (517) 371- money is it willing to spend to buttress this in- the film incentives, producing a tongue-in- of economic development and community af- 5355, FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. dustry, and is that the best allocation of the mon- cheek video on its Web site belittling the re- fairs for the county, said Oakland County ey?” bates. hopes to make local government assistance ADVERTISING ADVERTISING DIRECTOR Marla Downs, (313) Rep. Andy Meisner, D-Ferndale, who au- “Providing credits for film production might as painless as possible. 446-6032 or [email protected] thored the incentive law, did not return mes- be a laudable proposal for Michigan, but ... the “(Filmmakers) operate with time con- SALES INQUIRIES: (313) 446-6052; FAX (313) sages left for him Thursday and Friday. package cost is skyrocketing, and what that straints. If a company wants to shoot some 393-0997 ADVERTISING SALES Jeff Anderson, Terri The rebates are part of a nationwide trend to means in many cases is very substantial refund scenes in a warehouse, they can’t afford to Engstrom, Matthew J. Langan, Tamara Rokowski, lure Hollywood productions. Several states, in- checks will be sent to out-of-state companies un- wait through a 45-day permit review process Cathy Ross, Dale Smolinski WESTERN ACCOUNTS Ellen Mazen (Los Angeles) cluding New Mexico, Louisiana, Texas and likely to make Michigan their permanent loca- for (a certificate of) occupancy for a building (323) 370-2477 Wisconsin offer rebates, and Michigan was tion,” Tricia Kinley, the chamber’s director of they only need for one day,” she said. “We’ve CLASSIFIED ACCOUNT EXECUTIVE Greg got to be able to help with things like that.” Evangelista, 313-446-1655 able to nab a couple of projects from other tax policy and economic development, told EVENTS MANAGER Nicole LaPointe states because of its incentives. Crain’s in June. Chad Halcom: (313) 446-6796, MARKETING PROJECTS MANAGER Jennifer Dunn Jeff Spilman, a Farmington Hills native, re- Bill Shea: (313) 446-1626, [email protected] [email protected] MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, Andrea Beckham, YahNica Crawford CIRCULATION Candice Yopp, Manager. PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, Marijuana: Will pot use be OK in the workplace? (888) 909-9111 TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information ■ From Page 3 Center at [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Supporters say the act will pro- “So what’s an employer to do? ic about nonuse in the workplace.” they do with other zero tolerance CRAIN COMMUNICATIONS INC. tect people with debilitating ill- Once I discover that you are under Jim Barrett, former president of policies for alcohol and drugs,” CHAIRMAN Keith E. Crain nesses from the threat of arrest or the influence, what’s my remedy?” the Michigan Chamber of Commerce said Wendy Block, the chamber’s PRESIDENT Rance Crain SECRETARY Merrilee Crain jail for using marijuana to allevi- Fishman said. “It creates for em- and co-chair of the coalition oppos- director of health policy and hu- TREASURER Mary Kay Crain ate aspects of their conditions. ployers in Michigan an impossible ing Proposal 1, said that contrary to man resources. Executive Vice President/Operations William A. Morrow “This is designed to be a com- situation in which the employer is proponents’ arguments, Fishman’s She said the chamber has re- Group Vice President/Technology, passionate law, to help a small stripped of the ability to deter and memo “points viewed the Fishman memo but the Manufacturing, Circulation Robert C. Adams group of seriously ill patients,” to enforce zero tolerance.” out that there is chamber board does not meet Vice President/Production & Manufacturing Byrum said. Byrum said she was not aware indeed an impact again until January. Barrett said Dave Kamis Corporate Director/Circulation But labor and employment law of any case of employer problems on the employer Byrum “has been misleading the Patrick Sheposh attorney Steven Fishman, partner with medical marijuana laws in community.” employer community and the gen- G.D. Crain Jr. Founder (1885-1973) and chairman of the workplace the 12 states that have adopted Fishman is eral public” about the proposal’s Mrs. G.D. Crain Jr. Chairman (1911-1996) law group at Bodman L.L.P. in De- them, beginning in 1996. She also special labor and consequences; Byrum said oppo- EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) troit, said language specifically cited state supreme court rulings employment nents are “trying to spread misin- 446-6000 prohibiting marijuana use in the in California and Oregon that held counsel to the formation on what the ballot pro- Cable address: TWX 248-221-5122 AUTNEW DET Subscriptions $59 one year, $98 two years. Out of workplace is “glaringly omitted” that a patient could be fired for Michigan cham- posal is, and does.” state, $79 one year, $138 for two years. Outside from the proposal. testing positive for marijuana. ber and writes a At the least, Fishman’s memo is U.S.A., add $48 per year to out-of-state rate for Barrett surface mail. Fishman examined the law at Bruce Mirken, director of com- column for the drawing interest. Reprints: For inquiries call the reprints department the request of members of the op- munications with the Washington, chamber’s magazine. Sarah Hubbard, vice president at: (800) 494-9051, Ext. 144 , or at posing Citizens Protecting Michi- D.C.-based Marijuana Policy Project, a In January, the chamber’s board of government relations with the [email protected] CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is gan’s Kids coalition. In his memo to national marijuana policy reform adopted a position of neutrality of Detroit Regional Chamber, said Fish- published weekly except for a double issue the Michigan employers released last organization that is the major finan- the ballot issue. The board did so man “raised a lot of interesting second week in August by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. week, he noted that while the pro- cial backer of Michigan’s Proposal 1 after the chamber’s health and hu- points that we hadn’t considered.” Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address posal does not require employers campaign, said none of the medical man resources committee heard a She said the Detroit chamber has changes to CRAIN’S DETROIT BUSINESS, Circulation to tolerate workplace use of mari- marijuana laws passed by other presentation by Byrum on the bal- not so far taken a position on Pro- Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. juana, or to tolerate employees states permit use in the workplace, lot initiative and recommended posal 1, but it also hasn’t decided Entire contents copyright 2008 by Crain who are working under the influ- and that is not their intent. the chamber remain neutral. whether that will change. Communications Inc. All rights reserved. Reproduction or use of editorial content in any ence, it prohibits employers from Fishman said some other states “The feeling was that employers Amy Lane: (517) 371-5355, manner without permission is strictly prohibited. taking disciplinary action. have language that is “very specif- could work with the language as [email protected] 20081013-NEWS--0038-NAT-CCI-CD_-- 10/10/2008 6:12 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS October 13, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 4-10

— to find out that when Terms weren’t released, to the stadium to the Conser- someone at this paper is in Greektown but Andy Appleby, chairman vancy and grant a long-term Hang in there, trouble and has to clash and CEO of Rochester- lease of the playing field, with the bosses, I am one of based sports marketing The News reported. the first people they call for Casino seeks company General Sports and Detroit City Council help.” Entertainment L.L.C., estimat- voted Tuesday to settle a ed the deal was worth $1 lawsuit against council pres- Valenti urges potential million to $2.5 million. ident Monica Conyers brought Detroit calendar back Also, Cleveland-based Na- by a former aide for $90,000, after an 8-year break tional City Corp. was unveiled The News reported. buyers Wednesday as the Pistons’ Retired developer and The Days of Detroit cal- investors new presenting sponsor for retail mogul A. Alfred Taub- endar is back. reektown Casino L.L.C. the upcoming season. De- man is making a $22 million he phone was ring- Lessenberry have been hurl- The Detroit Historical Soci- in Detroit has hired tails weren’t disclosed, but bequest donation to the Uni- ing off the hook Fri- ing insults at each other in ety has revived the fact- G investment bank the deal is believed to run versity of Michigan’s A. Alfred T day at the Bloom- the pages of the alternative filled calendar for 2009, af- Moelis & Co. to seek potential three to five years. Taubman Medical Research field Hills-based weekly. ter an eight-year hiatus. buyers as it works to emerge Institute, payable after his wealth-management firm of The squabble stems from The calendar includes an from Chapter 11 and moves OTHER NEWS death, for an endowment to Valenti Capital L.L.C. with Lessenberry’s Sept. 24 col- event in Detroit’s history forward with its permanent fund disease research. friends and clients of for each day of the hotel plans, the Detroit Free Glenn Blanton, former Pontiac-based Michtel Chairman and CEO year and historical Press and Associated Press director of Cobo Center, Communications L.L.C., the In- Sam Valenti III in a photos from the col- reported. pleaded guilty Monday to ternet provider for the sus- state of panic over lection of the Walter P. The Detroit News report- obstruction of justice in pended Wireless Oakland the continued free Reuther Library. ed the city of Detroit is connection with an investi- project, said it is in talks fall of the stock mar- From 1998 to 2000, it pushing for a quick sale. gation of illegal payments with an investor and might ket. sold more than 16,000 Casino spokesman Roger he allegedly received from be able to resume the project “This is an old- copies to support op- Martin says a quick sale a contractor in 2005. Blan- by the end of the year, The doesn’t make sense. fashioned biblical erations at the Detroit ton, 47, of West Bloomfield News reported. Greektown hopes to par- storm,” said Valenti, Historical Museum, Township, faces up to 16 Bankruptcy judge tially open its 400-room ho- who is also president Dossin Great Lakes Mu- months in prison and a Robert Drain said Wednes- tel in time for the North of Masco Capital seum and the Collec- $30,000 fine. He remains day he may let Troy-based American International Auto Corp., the investment tions Resource Center free on bond and is sched- Delphi Corp. pursue wider Show. subsidiary that man- on the grounds of His- uled to be sentenced Jan. 22 fraud claims against the Ap- ages the pension Greektown also an- DETROIT HISTORICAL SOCIETY toric Fort Wayne. by U.S. District Court Judge paloosa Management L.P. fund for Taylor- The Detroit Historical Society has revived its nounced Wednesday CEO The calendar sells Marianne Battani. hedge fund, which led a fact-filled calendar. Craig Ghelfi plans to retire ef- based Masco Corp. Michigan Attorney failed effort to invest $2.55 for $12.95, or $10.95 for fective Oct. 31 and the casi- Valenti was trying General Michael Cox an- billion in the auto supplier, members, at all three insti- no’s board will be reduced to to reassure people to take umn critical of newsroom nounced a settlement Mon- the AP reported. tutions and at www. five from 12 members. deep breaths. changes announced by day with Countrywide Finan- Also, Federal Judge Avern “People can’t sell now. Freep Editor Paul Anger. detroithistorical.org. cial Corp. over allegations Cohn on Friday refused to They have to hang on. If Free Press reporters took Cockrel: Detroit could face the nation’s largest mort- dismiss civil charges we’re not at the bottom yet, umbrage in the form of e- For sale: aging corporate jet gage company engaged in against five people accused you can see it,” said Valenti. mails and letters, some of In the process of tying up $100M budget deficit predatory lending. of financial fraud at Delphi, “We’ve got to stop panick- which Lessenberry dis- the loose ends of Dearborn- Detroit Mayor Ken Cock- Among other things, including Paul Free, princi- ing. We’ve discounted every- missed as “calculated to in- based Plastech Engineered rel Jr. says Detroit could be Countrywide will renegoti- pal accountant until April thing to just short of return- gratiate themselves with Products Inc.’s Chapter 11, facing a budget deficit of at ate mortgages with more 2002, and former CEO J.T. ing to the barter system. management, and (they) least $100 million, the Free than 10,000 current and for- Battenberg. “People are acting as if don’t deserve a reply.” the company’s private jet is Press reported. mer homeowners in Michi- The University of Michi- the Bank of England said, ‘Af- Elrick led the charge, and being auctioned off. The deficit includes $65 gan; pay more than $9.8 mil- gan is the top-rated public ter 400 years, we’re getting Lessenberry called his let- The jet, a 1981 two-engine million former Mayor lion in homeowner university in the nation out of banking and going ter and the pro-Free Press eight-seat Rockwell Sabre- Kwame Kilpatrick had sought assistance; make relocation and the 18th-best public or into wedding planning.’ ” arguments “unintentional- liner 65 registered to Plas- with the sale of the city’s assistance payments to private university in the ly amusing,” along with tech subsidiary LDM Tech- half of the Detroit-Windsor some homeowners; and world, according to rank- “childish,” “bizarre” and nologies Inc., has received Tunnel. Detroit City Council stop selling subprime and ings released Wednesday Writers in a sandbox spat “prattling.” only one bid — $500,000 voted down that deal. option adjustable-rate by London-based Times One unintended but very Some other highlights cash from a Pennsylvania mortgage loans in Michi- Higher Education magazine. juicy outcome of “Textgate” from the exchange: company called Network gan for two years and im- AT&T Inc. says it is clos- has been the ongoing war of Lessenberry: “Not to be Sales & Leasing Ltd. Cadillac Centre deal ended pose new limits on the sale ing its dispatch and repair words between two of De- too hard on Elrick, however; Former Plastech CEO Plans for a $150 million of low- or no-documenta- center in Connecticut and troit’s leading gentlemen of his comments illustrate the Julie Brown used the jet to retail, residential and en- tion loans. moving an unspecified num- the Fourth Estate. sort of schizo thinking com- the tune of $379,464.88 in tertainment development Research spending at ber of jobs to Michigan. M.L. Elrick, one of the lead mon in newsrooms today.” 2007. near Detroit’s Campus Mar- the University of Michigan Toyota Motor Corp. on reporters on the Detroit Free Elrick: “It wouldn’t have tius that was to include reached a record $875.8 mil- Thursday officially opened Press’ coverage of the taken more than one phone Plastech’s lawyers are apartments, a cinema, lion this past academic Kwame Kilpatrick saga, and call for a true journalist — asking a Detroit bankrupt- its 530,000-square-foot ex- health club, 22,000 square year, including $100.3 mil- Metro Times columnist Jack or even a two-bit columnist cy judge to approve the sale. pansion to the Toyota Tech- feet for smaller boutique re- lion in funds from private- nical Center south of Ann tail and a 100,000-square- sector sources. Arbor in York Township. foot space for a larger re- The Sixth Circuit Court of MGM Grand Detroit Casi- tailer are on hold after the Appeals affirmed Monday a no reported $50 million rev- developer modified plans. dismissal of a shareholders enue in September, down How to cope when the competition is spooky A deadline given to the lawsuit against Visteon Corp., from $45 million in August. New York-based Northern saying there was no evi- MotorCity Casino had $36 Group — which was to be dence company executives Every successful businessperson Wednesday at million in September, down given the two acres of land keeps an eye on the competition. www.crainsdetroit.com/smalltalk. or an accounting firm acted from August’s $41 million, for $1 — elapsed Oct. 5. recklessly, the AP reported. Whether you’re selling doughnuts While you’re there, sign up for the while Greektown Casino Travelers coming into or making widgets or providing a Small Talk e-mail, which is sent L.L.C. declined to $25 mil- professional service, you ignore the three times a month. It has Sports pacts inked Detroit through the Detroit lion, from $27 million in competition at your own peril, lest exclusive stories, guest bloggers Windsor Tunnel next year August. they render you obsolete in your and video with tips on running a Fox Sports Net Detroit has will be able to use electron- customer’s eyes. small business. To sign up, go to inked a five-year, multimil- ic toll cards to more quickly OBITUARIES For one small business, the www.crainsdetroit.com/getemail. lion-dollar deal that makes cross the border. competition is multiplying — In addition to Small Talk, we also Allen Park-based Belle Tire The tunnel plaza on the Robert Kemp, founder frighteningly fast. In this week’s Distributors Inc. the regional Detroit side will also be ex- and president of Wilson, Small Talk, we’ll profile a local have FREE e-mails of daily and sports network’s first pre- panded next year to include Kemp & Associates in De- costume shop that has to contend weekly news headlines, nonprofit with dozens of new storefront WEB WORLD news, technology news, and our senting sponsor for local an 11th inspection lane. troit, died of cancer Sept. 3. Halloween shops at one of its Alan Baker charity scene e-mail, by Julie Yolles, pro sports broadcasts. The Old Tiger Stadium He was 69. busiest times of the year. Web General Manager known as Givers and Shakers. FSN Detroit has all local Conservancy and the Detroit Michael Redfield, for- How will that change the shop’s business Get Crain’s Detroit Business television rights for the De- Economic Growth Corp. mer owner of Fordsell Ma- plan? How would it change yours? Look for delivered to your inbox by going to troit Pistons, Detroit Red reached an agreement that chine Products in Warren, some answers in our Small Talk video on www.crainsdetroit.com/getemail. Wings and Detroit Tigers. will ultimately transfer title died Oct. 6. He was 77. © 2008 Liberty Mutual Group. VED our policy? e . ’v s y her k es e t’ r n e r o ts. y ha u i t w - o ied about . W re nef r -t r th her and o e i onder w n CK, WE REMO o r iding timely u v t A ur emplo no w o s ’ pro groupb she w , / s nered w ’ t , it m esponsibility o R c par loped a plan t t her it u and y t e o v e ting unique re h per x th y W . s ymutual. OM HER SHOULDERS. t r r bo e aims e o l s or crea ion and de omer t e c t t a y t u da managing disabilities f uld no longer do her job visit lib o , t thing f sabili i us up y c the sit t gh f AIN IN HER B ion i t a ears o y of AD FR t a y re o 5 m oup D r r u O D o f LT ting from our cus aims s r G l . pict | u ance Compan e t . O ion ra t STD e Assur cura | VY L ts and c r more in o ty Lif ty Mutual Group tisfac . F cus on doing the r LIFE With more than 9 ymen o . y Liber t an ac e f t her family % sa the Liber ing mom with a back injur e pa rc ge 7 or k ered b e o f o r t f w o , k r or t o cura supp our policy BENEFITS: ed a 9 o s ’ iv t e O EASE THE P OUP the w o how t When a w t solutions rec Tha and ac her doct GR Group products of Boston, a member of T THE HEA DBpageAD.qxd 9/30/2008 2:46 PM Page 1 Page PM 2:46 9/30/2008 DBpageAD.qxd DBpageAD.qxd 9/25/2008 4:31 PM Page 1

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